Corrective Action Plans

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2025-001 REPORTING ALN 20.106 Airport Improvement Program U.S. Department of Transportation Federal Aviation Administration Federal Award No. 3-12-0046-064-2024 2024/2025 Funding Recommendation: The Airport, a component unit of the City, should develop a process to ensure reports are submitted timel...
2025-001 REPORTING ALN 20.106 Airport Improvement Program U.S. Department of Transportation Federal Aviation Administration Federal Award No. 3-12-0046-064-2024 2024/2025 Funding Recommendation: The Airport, a component unit of the City, should develop a process to ensure reports are submitted timely for all awards including re-assigning tasks when personnel are on leave. Corrective Action: Airport management has set up a process whereby the quarterly reports are reviewed by another team member to ensure the reports are completed and submitted in the time frame required by the Federal Aviation Administration. This review will be completed by the Accounting Manager who understands the importance of submitting the information and, if they are not completed, will complete and submit the reports. Any issues or omissions observed by the Accounting Manager with submitting the required reports will be reported to the Director of Finance and Administration for further follow-up with the staff member who is primarily responsible for this task Responsible party: Mike O’Dell, Director of Finance & Administration Date Expected to be Corrected: March 17, 2026
Management has agreed to closely monitor the receipt of federal funds and disburse those funds timely in order to ensure compliance with this regulation. The Cash Balance Report that is updated daily of all incoming receipts will be used as a tool to ensure expenses incurred are paid timely in the w...
Management has agreed to closely monitor the receipt of federal funds and disburse those funds timely in order to ensure compliance with this regulation. The Cash Balance Report that is updated daily of all incoming receipts will be used as a tool to ensure expenses incurred are paid timely in the weekly disbursements.
Views of Responsible Officials and Planned Corrective Action: While QARI concurs with the need for fully compliant time and effort documentation, the issue identified reflects limitations during the initial implementation of a new payroll system, not misuse of grant funds. QARI implemented a new pay...
Views of Responsible Officials and Planned Corrective Action: While QARI concurs with the need for fully compliant time and effort documentation, the issue identified reflects limitations during the initial implementation of a new payroll system, not misuse of grant funds. QARI implemented a new payroll and timekeeping system in April 2025 to correct undercoding and allocation issues in the prior system. During the transition period (April–June 2025), payroll was allocated using budget-based percentages while staff clocked in and out and supervisors monitored work assignments to ensure time was spent on allowable grant activities. QARI’s internal review confirms that employees charged to the grant performed allowable and allocable work; however, the system configuration did not fully capture employee-level allocations by funding source during this implementation phase. Corrective actions include: 1) Reconstruction of manual timesheets for April–June 2025, supported by calendars and program records, with employee attestation and supervisory approval; 2) Reconfiguration of the payroll system to require employee self-allocation of actual hours worked each pay period; 3) Enhanced supervisory review and internal controls. The questioned costs reflect a temporary documentation gap during system transition, not unsupported or inappropriate expenditures. QARI has taken corrective action to ensure full compliance going forward.
Reviews of Grant Reports Recommendation: The City should have controls in place to ensure all reports are reviewed prior to submittal and the review is documented. Management Response: Management agrees with the finding. Management will implement procedures to document independent review of all repo...
Reviews of Grant Reports Recommendation: The City should have controls in place to ensure all reports are reviewed prior to submittal and the review is documented. Management Response: Management agrees with the finding. Management will implement procedures to document independent review of all reports submitted to the U.S. Treasury to ensure completeness, accuracy, and timeliness. Anticipated Completion Date: Immediately Responsible Contact Person: Yannick Ngendahayo, Finance Director
U.S. Department of Housing and Urban Development Pioneer Housing Development, Inc. respectfully submits the following corrective action plan for the year ended December 31, 2025. Audit period: Year ended December 31, 2025 The findings from the schedule of findings and questioned costs are discussed ...
U.S. Department of Housing and Urban Development Pioneer Housing Development, Inc. respectfully submits the following corrective action plan for the year ended December 31, 2025. Audit period: Year ended December 31, 2025 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS U.S. Department of Housing and Urban Development 2025-001 Section 207 Insured Loan Balance – Assistance Listing No. 14.134 Recommendation: We recommend management ensure security deposits are accurately recorded upon receipt and review the security deposit asset against the related liability monthly to ensure the account is adequately funded. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: On January 20, 2026, a $2,000 deposit was made to the security deposit account to adequately fund it. Management will review the asset against the related liability monthly to ensure the account is adequately funded going forward. Name(s) of the contact person(s) responsible for corrective action: Jill Kouba, Director, Financial Services Planned completion date for corrective action plan: January 20, 2026
The Organization will develop and implement formal, documented monitoring procedures designed to ensure the accuracy of financial and programmatic reporting, as well as to track and maintain compliance with matching, level of effort, and earmarking requirements.
The Organization will develop and implement formal, documented monitoring procedures designed to ensure the accuracy of financial and programmatic reporting, as well as to track and maintain compliance with matching, level of effort, and earmarking requirements.
Underpayment of the Flex Subsidy Loan On June 1, 2020, the Organization reached out to HUD with a plan to resolve the delinquent payments. Suggestions were to either forgive the loan or to have the payments be made from surplus cash. The Organization has not received correspondence concerning these ...
Underpayment of the Flex Subsidy Loan On June 1, 2020, the Organization reached out to HUD with a plan to resolve the delinquent payments. Suggestions were to either forgive the loan or to have the payments be made from surplus cash. The Organization has not received correspondence concerning these suggestions as of the date on this report, November 22, 2025. Karen Burkett, the Managing Agent, will work with the Organization to resolve this matter. The anticipated completion date is June 30, 2026.
FINDING 2025-001 Corrective Action Plan During the fiscal year June 30, 2025, Veterans Northeast Outreach Center, Inc. (the Organization) began implementing procedures to strengthen its system of internal controls. The Organization continues efforts to strengthen its system of internal controls thro...
FINDING 2025-001 Corrective Action Plan During the fiscal year June 30, 2025, Veterans Northeast Outreach Center, Inc. (the Organization) began implementing procedures to strengthen its system of internal controls. The Organization continues efforts to strengthen its system of internal controls throughout fiscal year 2026 with a limited finance team. Internal controls improved include a rigorous review of tenant receivables and accounts payable. Responsible party: Jason Youngclaus; Chief Financial Officer; (978) 930-3830 Anticipated completion date: June 30, 2026 FINDING 2025-002 Corrective Action Plan Management will work to identify a process of reviewing journal entries on a regular basis. The challenge with implementing a journal review process is the limited staff to facilitate a multi-level review of journal entries. The Organization will be discussing internally and with the Board of Directors a manner in which this can be accomplished. Responsible party: Jason Youngclaus; Chief Financial Officer; (978) 930-3830 Anticipated completion date: June 30, 2026 FINDING 2025-003 Corrective Action Plan Refer to the corrective action plans for findings 2025-001 and 2025-002. Responsible party: Jason Youngclaus; Chief Financial Officer; (978) 930-3830 Anticipated completion date: June 30, 2026
Student Financial Aid Cluster – Assistance Listing No. Various Recommendation: We recommend the University review its controls around exit counseling procedures to ensure that all students who withdrew or graduated with a Stafford or PLUS loan had exit counseling performed for them and appropriate d...
Student Financial Aid Cluster – Assistance Listing No. Various Recommendation: We recommend the University review its controls around exit counseling procedures to ensure that all students who withdrew or graduated with a Stafford or PLUS loan had exit counseling performed for them and appropriate documentation is retained. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Financial Aid staff are working with the Registrar and Advising staff on the implementation of a tracking sheet to ensure outreach is provided to all students who withdraw or graduate from the University. The Financial Aid staff will meet with students in person or virtually and provide students with a follow-up email communicating exit counseling information. The Financial Aid staff will update the tracking sheet with confirmed notes and dates, and the Registrar and Advising teams will review to ensure students have received the necessary information from all offices prior to exiting the University. Name(s) of the contact person(s) responsible for corrective action: Ana Borjas, Financial Aid Director Planned completion date for corrective action plan: 03/06/2026
We will change the way we prepare grant expenditure reports internally to ensure that journal entries are not counted twice. We will also have grant expenditures reports reviewed by someone other than the preparer before submission.
We will change the way we prepare grant expenditure reports internally to ensure that journal entries are not counted twice. We will also have grant expenditures reports reviewed by someone other than the preparer before submission.
Response: The Office of Student Financial Aid will update their procedures to verify the proper aid is reviewed and awarded based on any of the student’s financial aid activity.
Response: The Office of Student Financial Aid will update their procedures to verify the proper aid is reviewed and awarded based on any of the student’s financial aid activity.
2025-003 Allowability of Rental Assistance Payments - Landlord Verifications Federal Agency- US Department of Housing and Urban Development Continuum of Care Program -Assistance Listing# 14.267 Hennepin County Contract HS00001366 Year ended June 30, 2025 Material Weakness in Internal Control over Co...
2025-003 Allowability of Rental Assistance Payments - Landlord Verifications Federal Agency- US Department of Housing and Urban Development Continuum of Care Program -Assistance Listing# 14.267 Hennepin County Contract HS00001366 Year ended June 30, 2025 Material Weakness in Internal Control over Compliance Recommendation - Agate Housing and Services, Inc. strengthen internal controls to ensure landlord verifications are completed and required documentation, including W9 forms, is obtained and retained for all vendors prior to the disbursement of rental assistance funds. Management should implement a procedure to verify required documentation is present before payment approval. Corrective action - Agate Housing and Services, Inc. agrees with the finding and is in the process of strengthening its controls over the verification of landlords. All vendors without TINs have been archived from the accounting system. A new portal has been created on Agate's website for landlords to submit required documentation electronically and paperwork (W9 and Property Tax Records) are attached to vendor profiles in the accounting system prior to issuing payments. Name of contact person(s) responsible for corrective action - Elizabeth Macha rt, Director of Housing Programs and Sara Wenzel, Associate Director Time Limited Housing Completion date - Vendor purge began January 2025 and rollout of new LL portal March 2026
2025-001: Insufficient Controls Over Monitoring Federal Expenditures and SEFA Preparation (Significant Deficiency) The City concurs with the finding and will strengthen controls over monitoring federal expenditures and preparation of the Schedule of Expenditures of Federal Awards (SEFA). The Finance...
2025-001: Insufficient Controls Over Monitoring Federal Expenditures and SEFA Preparation (Significant Deficiency) The City concurs with the finding and will strengthen controls over monitoring federal expenditures and preparation of the Schedule of Expenditures of Federal Awards (SEFA). The Finance Department will implement centralized oversight of federal grant activity and maintain a grant tracking schedule to monitor cumulative federal expenditures by program, including reimbursements and receivables. Departments administering federal programs will be required to report grant expenditures to Finance, and periodic reconciliations will be performed between departmental records, reimbursement requests submitted to the pass-through agency, and amounts recorded in the general ledger. At year-end, the Finance Department will prepare the SEFA and perform a formal management review to ensure all federal expenditures are complete and accurately reported and evaluated against the Single Audit threshold in accordance with Uniform Guidance. Personnel involved in grant administration will receive training on applicable Uniform Guidance requirements to support compliance with federal reporting and monitoring requirements. Anticipated Completion Date: June 2026
Criteria: CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. The loan re...
Criteria: CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. The loan resolution security agreement states the Hospital must set aside a capital asset replacement account which may be established as a bookkeeping account or as a separate bank account. Funds may be deposited in institutions insured by state and federal government orinvested in marketable securities backed by the full faith and credit of the United States. Condition: The funds that represented the capital asset replacement fund were commingled with an existing board-designated CD account. Views of Responsible Officials and Planned Corrective Action: Management agrees with the funding and will deposit the required capital asset replacement funds in either a separate bank account or general ledger account. Planned Completion Date: December 31, 2026 Person Responsible: Nik Brimeyer, CFO
Finding 2025-001: Rural Rental Housing Loans Assistance Listing Number: 10.415 U.S. Department of Agriculture (Repeat of Finding 2024-001) Compliance Requirement: Eligibility, Program Income Type of finding: Internal Control Over Compliance (significant deficiency) Recommendation: The Organization s...
Finding 2025-001: Rural Rental Housing Loans Assistance Listing Number: 10.415 U.S. Department of Agriculture (Repeat of Finding 2024-001) Compliance Requirement: Eligibility, Program Income Type of finding: Internal Control Over Compliance (significant deficiency) Recommendation: The Organization should strengthen its internal controls with adopted policies and procedures to ensure a review process is established through adequate segregation of duties. The Organization should consider assessing and realigning the duties and responsibilities of the Executive Director, Administrative Assistant, and Alamosa Property Manager to provide for a review process of tenant eligibility determinations and the monthly housing assistance payment requests for the Sierra Vista Alamosa Housing Complex. Action Taken: This finding was from the actions of the pervious on-site manager, concerning the Alamosa Complex only. Sierra Vista/Alamosa Complex has already implemented the internal control concerning compliance in house. Priscilla and Alonzo will make sure that all internal compliance issues are segregated and check by at least 2 persons in the office, and if needed, the Executive Director can request viewing of internal control procedures as well. Alonzo and Priscilla prepare and review along with signatures of the review and approval dates of internal affairs. "This institution is an equal opportunity provider." If there are questions regarding this plan, please call the responsible party at (719)852-5505. Sincerely yours, Corinna Garcia Executive Director Monte Vista Community Center Housing Authority, Inc.
Health Center Program – Assistance Listing No. 93.224 Recommendation: We recommend the organization enhances its current process related to the preparation of the UDS report and reinforce the requirement to maintain documentation to support the amounts reported within the various tables within the U...
Health Center Program – Assistance Listing No. 93.224 Recommendation: We recommend the organization enhances its current process related to the preparation of the UDS report and reinforce the requirement to maintain documentation to support the amounts reported within the various tables within the UDS report. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We will continue to maintain supporting documentation for our UDS submissions, to include any emails between the reviewer and FCC staff members in regards to questioned amounts and recommended reclassifications. Dental records, which are produced from a separate EMR system and require manual compilation, will be included with our UDS supporting records. Name(s) of the contact person(s) responsible for corrective action: Jennifer A. Breedlove Planned completion date for corrective action plan: March 31, 2026
2025-003 PREVAILING WAGE U.S. Department of Housing and Urban Development ALN 14.251 – Economic Development Initiative, Community Project Funding, and Miscellaneous Grants Contract No. B-22-CP-KY-0347 (2022) and B-23-CP-KY-0612 (2023) Criteria and Condition: During our audit procedures, we noted the...
2025-003 PREVAILING WAGE U.S. Department of Housing and Urban Development ALN 14.251 – Economic Development Initiative, Community Project Funding, and Miscellaneous Grants Contract No. B-22-CP-KY-0347 (2022) and B-23-CP-KY-0612 (2023) Criteria and Condition: During our audit procedures, we noted the Authority did not notify contractors that Federal funds would be in payments. As such, contractors did not include federal prevailing wage language in their bids/contracts, and did not provide weekly certified payroll reports to the Authority. Cause: Management was unaware of the requirements of prevailing wage for federal construction grants, and as such, did not communicate to contractors that federal funds would be utilized. Effect: The Authority was not in compliance with the grant requirements in the OMB Compliance Supplement over prevailing wage requirements for laborers and mechanics. Questioned Costs: Unable to determine. Recommendation: We recommend management obtain a greater understanding of the Compliance Supplement requirements over HUD grants, and implement a review process whereby contracts and invoices are not approved without appropriate prevailing wage consideration and certified payrolls. Action Taken: The Authority will gain a greater understanding of HUD grants, and will implement a review process to ensure prevailing wage requirements are considered prior to approving contracts and invoices. Individual(s) responsible for implementing: Maureen Carpenter, CEO Anticipated Completion Date: September 30, 2026
We recommend Christian Care management strengthen internal controls and oversight over the rental assistance calculations and tenant eligibility documentation to ensure accuracy of all assistance payments.
We recommend Christian Care management strengthen internal controls and oversight over the rental assistance calculations and tenant eligibility documentation to ensure accuracy of all assistance payments.
2025-005 Lack of Reporting Review Recommendation: The City should have controls in place to ensure all reports are reviewed prior to submittal. Management Response: Management agrees that reports should be reviewed prior to submission and notes that the City does have controls in place to ensure app...
2025-005 Lack of Reporting Review Recommendation: The City should have controls in place to ensure all reports are reviewed prior to submittal. Management Response: Management agrees that reports should be reviewed prior to submission and notes that the City does have controls in place to ensure appropriate review procedures are performed. In this instance, the report was prepared and submitted by the City Manager, and due to limitations within the Federal Government’s online reporting system, there was not a built-in approval workflow available to document the review process. To strengthen our controls, the City will print and retain a copy of the report prior to electronic submission to allow for documented review and approval. This will ensure appropriate oversight is evidenced and that sufficient supporting documentation is maintained to demonstrate the review process was completed. Responsible Parties: Brittany Retherford, City Manager, Mindy Brown, Comptroller, and Bethany Messersmith, Assistant Comptroller Anticipated Completion Date: September 30, 2026
Special Tests and Provisions – Material Weakness in Internal Controls over Compliance (Replacement Reserve Disbursement – HUD Approval Requirement) Management Response Management acknowledges that a disbursement of $15,000 was made from the replacement reserve account without obtaining prior written...
Special Tests and Provisions – Material Weakness in Internal Controls over Compliance (Replacement Reserve Disbursement – HUD Approval Requirement) Management Response Management acknowledges that a disbursement of $15,000 was made from the replacement reserve account without obtaining prior written approval from HUD, as required under the Capital Advance Regulatory Agreement. Management recognizes that appropriate controls were not in place to prevent disbursement of restricted reserve funds without required approval, resulting in noncompliance. Management has initiated communication with HUD to disclose the transaction and request guidance on the appropriate resolution. The organization will comply with all directives issued by HUD and will continue to follow up as necessary to ensure timely resolution. Corrective Actions Implemented / To Be Implemented • A formal control will be implemented requiring documented written HUD approval prior to any disbursement from the replacement reserve account. • All reserve disbursements will require documented HUD approval prior to processing and will be subject to Controller review to ensure compliance with HUD requirements. • Replacement reserve accounts will be formally designated as restricted funds within internal financial procedures. • A formal policy governing replacement reserve disbursements will be established. • Alternative funding sources will be used when HUD approval is not available. • Training will be provided to relevant staff on HUD requirements and reserve controls.Training Training on reserve account procedures will be conducted by May 1, 2026, with refresher training annually. Responsible Staff: Controller – Oversight of compliance Chief Executive Officer (CEO) – Final accountability Implementation Date: Corrective actions related to implementation of review controls will be implemented immediately. Resolution will follow HUD guidance.
FINDING 2025-005: Wage Rate Compliance Response: The District will review all contracts to ensure that they include the Davis-Bacon requirements for wage rate compliance and require certified copies of wages paid to contractors to retain as required by Federal Law.
FINDING 2025-005: Wage Rate Compliance Response: The District will review all contracts to ensure that they include the Davis-Bacon requirements for wage rate compliance and require certified copies of wages paid to contractors to retain as required by Federal Law.
The University acknowledges the auditor’s finding regarding the late submission of the June 30, 2025, Single Audit reporting package. Although the submission exceeded the required federal deadline by only one day, management recognizes that any delay constitutes noncompliance with 2 CFR 200.512(a), ...
The University acknowledges the auditor’s finding regarding the late submission of the June 30, 2025, Single Audit reporting package. Although the submission exceeded the required federal deadline by only one day, management recognizes that any delay constitutes noncompliance with 2 CFR 200.512(a), and we take full responsibility for this timing exception. Over the past six months, the University has undertaken significant steps to strengthen its financial, accounting, and compliance infrastructure. As part of this effort, the University has hired several key leaders and staff members, including a new Vice President & Chief Financial Officer, a Controller, and a Director of Financial Aid, among other critical staff additions. These new appointments have already begun enhancing oversight, accountability, and operational capacity within the Financial Affairs and Student Financial Aid functions. The slight delay in the FY 2025 submission occurred during a period of substantial organizational transition, when newly onboarded leadership was assessing existing workflows and implementing corrective improvements. To ensure that no future deadlines are missed—and to fully eliminate repeat findings—the University has established enhanced internal controls and strengthened reporting processes, including: • Implementing a detailed Single Audit reporting calendar with accelerated internal milestones. • Assigning clear roles, responsibilities, and escalation procedures across all involved departments. • Deploying an automated tracking and reminder system for federal reporting deadlines. • Conducting quarterly compliance and readiness reviews to ensure alignment with Uniform Guidance requirements. Management is committed to ensuring timely and accurate compliance with all federal reporting obligations. With the addition of new, experienced leadership and the implementation of strengthened processes, the University is confident that this issue has been addressed and will not recur.
The monthly deposit for repayment of loan from the replacement reserve was not done for December 2025. - The correcting deposit was made on February 11, 2026.
The monthly deposit for repayment of loan from the replacement reserve was not done for December 2025. - The correcting deposit was made on February 11, 2026.
2025-002 Corrective Action: We will correct the application of indirect costs and reduce the very next future request for reimbursement by the overcharged indirect costs. We have also changed the circumstances that caused the limitation to be overlooked related to this specific contract.
2025-002 Corrective Action: We will correct the application of indirect costs and reduce the very next future request for reimbursement by the overcharged indirect costs. We have also changed the circumstances that caused the limitation to be overlooked related to this specific contract.
Finding 2025-006 Finding Summary: Pursuant to 20 USC 2011h, the District is required to report graduation rate data for all public high schools for the District for each graduating cohort. To remove a student from the cohort, the District must confirm, in writing, that the student transferred out, e...
Finding 2025-006 Finding Summary: Pursuant to 20 USC 2011h, the District is required to report graduation rate data for all public high schools for the District for each graduating cohort. To remove a student from the cohort, the District must confirm, in writing, that the student transferred out, emigrated to another country, transferred to a prison or juvenile facility, or is deceased. Elko County School District did not have sufficient internal controls to ensure all documentation for the removal of students from the cohort was maintained. Corrective Action Plan: The District will provide training to all registrars and create a consistent form that will be available to all school sites for tracking purposes Responsible Individual: Ray Smith Director of Special Education Anticipated Completion Date: June 2026
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