Corrective Action Plans

Finding 1223174 (2025-001)

Material Weakness 2025

Centre Care, Inc.

PA

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Views of Responsible Officials and Planned Corrective Actions Centre Care acknowledges the 2024 Uniform Guidance Audit report was submitted late to the Federal Audit Clearinghouse. Centre Care was in the process of negotiating with the USDA related to another loan agreement and financial statements ...

Views of Responsible Officials and Planned Corrective Actions Centre Care acknowledges the 2024 Uniform Guidance Audit report was submitted late to the Federal Audit Clearinghouse. Centre Care was in the process of negotiating with the USDA related to another loan agreement and financial statements were reissued to alleviate the going concern impacting the timing of reporting. In addition, our consulting team (CHR) incurred transition within the accounting team and as a result the reporting deadline was not communicated to the new team, and the reporting deadline was missed. Corrective Action Plan: Centre Care already remedied this issue in 2026 by submitting the reporting package and data collection form for the year ended December 31, 2024, and the data collection form process has been started for the December 31, 2025, audit and will be submitted upon finalizing the audit report in accordance with Uniform Guidance requirements.

View Audit 406690

Finding 1223159 (2025-006)

Material Weakness 2025

Hillcrest Family Services, INC

IA

Reporting Questioned Costs Significant Deficiency

Finding 2025-006 Reporting Federal Agency Name: U.S. Department of Health and Human Services Program Name: Certified Community Behavioral Health Clinic Expansion Grants Federal Financial Assistance Listing Number: 93.696 Finding Summary: During audit testing of reporting, there was no documentation ...

Finding 2025-006 Reporting Federal Agency Name: U.S. Department of Health and Human Services Program Name: Certified Community Behavioral Health Clinic Expansion Grants Federal Financial Assistance Listing Number: 93.696 Finding Summary: During audit testing of reporting, there was no documentation available for the review and approval procedures performed for one of the reports tested. Responsible Individuals: Janet Warren, Director of Financial Operations Corrective Action Plan: Management agrees with the finding. There was turnover in staff and the prior CFO did not keep a record of his review over reporting. In the future, management will ensure that documentation of the approval process for reporting is kept. Anticipated Completion Date: June 5, 2026.

View Audit 406681

Finding 1223158 (2025-005)

Material Weakness 2025

Hillcrest Family Services, INC

IA

Cash Management Questioned Costs Significant Deficiency

Finding 2025-005 Cash Management Federal Agency Name: U.S. Department of Health and Human Services Program Name: Certified Community Behavioral Health Clinic Expansion Grants Federal Financial Assistance Listing Number: 93.696 Finding Summary: During audit testing of reimbursement requests, there wa...

Finding 2025-005 Cash Management Federal Agency Name: U.S. Department of Health and Human Services Program Name: Certified Community Behavioral Health Clinic Expansion Grants Federal Financial Assistance Listing Number: 93.696 Finding Summary: During audit testing of reimbursement requests, there was no documentation available for the review and approval procedures performed. Responsible Individuals: Janet Warren, Director of Financial Operations Corrective Action Plan: Management agrees with the finding. There was turnover in staff and the prior CFO did not keep a record of his review over cash management. In the future, management will ensure that documentation of the approval process for reimbursement is kept. Anticipated Completion Date: June 5, 2026.

View Audit 406681

Finding 1223065 (2025-001)

Material Weakness 2025

Lorna Doone Associates, LLC

UT

Questioned Costs HUD Housing Programs Matching / Level of Effort / Earmarking

a. Management is negotiating a solution with the State of Utah and HUD for a refund of the payment.

View Audit 406642

Finding 1223063 (2025-004)

Material Weakness 2025

FERGUS ELECTRIC COOPERATIVE, INC

MT

Reporting Matching / Level of Effort / Earmarking § 200.501 § 200.502

Fergus has adopted and implemented policy: 252.0 Federal Funding Compliance to establish formal procedures and ensure ongoing compliance with applicable federal regulations, including 7 CFR 4280, Subpart A and 2 CFR 200. Anticipated completion date: August 31, 2026

View Audit 406639

Finding 1223062 (2025-003)

Material Weakness 2025

FERGUS ELECTRIC COOPERATIVE, INC

MT

Reporting Subrecipient Monitoring Matching / Level of Effort / Earmarking § 200.328

Fergus has adopted and implemented policy: 252.0 Federal Funding Compliance to establish formal procedures and ensure ongoing compliance with applicable federal regulations, including 7 CFR 4280, Subpart A and 2 CFR 200. Anticipated completion date: August 31, 2026

View Audit 406639

Finding 1223014 (2025-002)

Material Weakness 2025

City of Fort Lupton

CO

Procurement, Suspension & Debarment Subrecipient Monitoring Matching / Level of Effort / Earmarking

Suspension and Debarment – Assistance Listing No. 66.458 and 10.760 Recommendation: The City should update all contracts to include a suspension and debarment paragraph to verify status with every renewal, request certification from the proposed entity, or verify vendors through SAM.gov prior to uti...

Suspension and Debarment – Assistance Listing No. 66.458 and 10.760 Recommendation: The City should update all contracts to include a suspension and debarment paragraph to verify status with every renewal, request certification from the proposed entity, or verify vendors through SAM.gov prior to utilizing vendor services. Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. (102) Action Taken in Response to Finding: The finance director and the public works director have already implemented a process to verify the SAM status of all contractors on all projects regardless of funding. However, this did not capture contractors working on existing projects. Name of the Contact Person Responsible for Corrective Action: Leann Perino, Finance Director Planned Completion Date for Corrective Action Plan: December 31, 2026

View Audit 406557

Finding 1222850 (2025-002)

Material Weakness 2025

Promise Healthcare Nfp

IL

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring § 200.317 § 200.318 § 200.319 § 200.320

Procurement – Assistance Listing No. 93.224/93.527 Recommendation: We recommend the Organization consistently follow its established policies and procedures related to the maintaining of necessary documentation to support the method of procurement utilized. The Organization may also consider qualify...

Procurement – Assistance Listing No. 93.224/93.527 Recommendation: We recommend the Organization consistently follow its established policies and procedures related to the maintaining of necessary documentation to support the method of procurement utilized. The Organization may also consider qualifying multiple vendors for particular goods/service and then utilizing an approved vendors list. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: • Review Contract and procurement policies and procedures. • Compare current procurement process and training to the policies and identify areas for correction and improvement. • Update Policies and procedures as needed. • Implement procedures to review vendors on a periodic basis. • Implement procedures and assign responsibility for checking off that procurement documentation exists and is in the vendor folder or designated area. • Retrain staff involved in procurement on updated procedures. • Monitor process and adjust as needed. Name of the contact person responsible for corrective action: Keith Flores, CFO Planned completion date for corrective action plan: January 2027

View Audit 406409

Finding 1222839 (2025-002)

Material Weakness 2025

Town of Castle Rock, Colorado

CO

Reporting Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303 § 200.328 § 200.329

Finding 2025-002 Federal Agency Name: U.S. Department of Treasury Program Name: Coronavirus State and Local Fiscal Recovery Funds FFALN # 21.027 Finding Summary: Eide Bailly LLP prepared our single audit for Federal Coronavirus State and Local Fiscal Recovery Funds where the Town is a subrecipient t...

Finding 2025-002 Federal Agency Name: U.S. Department of Treasury Program Name: Coronavirus State and Local Fiscal Recovery Funds FFALN # 21.027 Finding Summary: Eide Bailly LLP prepared our single audit for Federal Coronavirus State and Local Fiscal Recovery Funds where the Town is a subrecipient to Douglas County who is the recipient of the funds. Eide Bailly LLP identified that the Town did not have documented or consistently applied internal controls to ensure compliance with the County’s subrecipient guidance requiring the submission of formal special reports for ALN 21.027. Responsible Individuals: Mark Henderson, Assistant Director of Castle Rock Water Corrective Action Plan: Staff will complete quarterly reports including project progress and estimated project infrastructure costs. The reports will be reviewed by management prior to submission to the recipient of the Federal Funds (Douglas County). Anticipated Completion Date: Ongoing during the period that the Town is a subrecipient of these funds for the project.

View Audit 406402

Finding 1222755 (2025-003)

Material Weakness 2025

The Order of Fishermen Ministry Head Start Program, Inc.

MI

Questioned Costs Subrecipient Monitoring Material Weakness § 200.501 § 200.512 § 200.514

Condition – The data collection form was not submitted within the required time as required by 2 CFR 200.512 for the year ended June 30, 2025. Planned Corrective Action – The Agency will take all reasonable measures to work with the new auditors to complete the audit process and submit the data coll...

Condition – The data collection form was not submitted within the required time as required by 2 CFR 200.512 for the year ended June 30, 2025. Planned Corrective Action – The Agency will take all reasonable measures to work with the new auditors to complete the audit process and submit the data collection report within the required time period. Anticipated Date of Correction – The 2026 data collection form for the year ended June 30, 2026, will be issued to GSA within the required deadline of the earlier of thirty days after issuance of the 2026 audit or prior to March 31, 2027. Point of Contact: James Williams, Fiscal Officer/Program Director

View Audit 406338

Finding 1222746 (2025-001)

Material Weakness 2025

Lynn Street Manor Apartments

MI

Internal Control / Segregation of Duties Questioned Costs Procurement, Suspension & Debarment

Tyler Luce, Executive Vice President & CFO, respectfully submits the following corrective action plan for the year ended September 30, 2025. Name and address of independent public accounting firm: Maner Costerisan, P.C. 2425 E. Grand River Ave, Ste 1 Lansing, MI 48912 Audit period: October 1, 2024 –...

Tyler Luce, Executive Vice President & CFO, respectfully submits the following corrective action plan for the year ended September 30, 2025. Name and address of independent public accounting firm: Maner Costerisan, P.C. 2425 E. Grand River Ave, Ste 1 Lansing, MI 48912 Audit period: October 1, 2024 – September 30, 2025 The findings from the September 30, 2025 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Finding 2025-001 Recommendation: The entity should design and implement stronger internal controls over project funds, including enhanced segregation of duties, documented procurement procedures, conflict-of-interest monitoring, and periodic independent review of project expenditures to ensure compliance with Uniform Guidance. Management Comments: We agree with the facts and circumstances of this finding. Management has taken corrective action in response to this finding. The employees involved are no longer employed in connection with the project, and the matter was reported to the HUD Office of Inspector General. Management has reviewed and strengthened the project's controls over conflict-of-interest monitoring and enforcement of existing time-clock policies. In addition, we have and will continue to perform independent reviews of project expenditures to ensure compliance with Uniform Guidance.

View Audit 406329

Finding 1222666 (2025-004)

Material Weakness 2025

UNITED COMMUNITY MINISTRIES, INC.

VA

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Subrecipient Monitoring § 200.303

2025-004 Auditor’s Recommendation: UCM should formalize and document internal control procedures over Federal award expenditures, including documented review and approval processes to ensure compliance with Uniform Guidance. Corrective Action: UCM will formalize and document internal control procedu...

2025-004 Auditor’s Recommendation: UCM should formalize and document internal control procedures over Federal award expenditures, including documented review and approval processes to ensure compliance with Uniform Guidance. Corrective Action: UCM will formalize and document internal control procedures over Federal award expenditures to ensure costs charged to Federal awards are allowable, allocable, reasonable, properly approved, and adequately supported in accordance with Uniform Guidance. Written procedures will be developed for expenditure review and approval, including documentation of business purpose, budget availability, cost eligibility under the award terms, proper account coding, funding source, supporting documentation, and evidence of approval. UCM will also strengthen controls over direct assistance to client expenditures by requiring documentation of client eligibility, assistance type, amount approved, funding source, program approval, finance review, and evidence of payment. Direct assistance expenditures will be reviewed to ensure they are allowable under the Federal award, consistent with program requirements, properly coded, and adequately supported before payment or reimbursement is processed. UCM will also implement a Federal award expenditure checklist or similar review tool to document review before expenditures are paid, posted, or reported. The checklist will include review of allowability, allocability, reasonableness, budget availability, funding source, supporting documentation, approval, and compliance with applicable Federal award requirements. For direct assistance to clients, the checklist will also confirm client eligibility, approved assistance type, required case documentation, and evidence of payment. Staff responsible for Federal award expenditures, direct client assistance, grant accounting, accounts payable, and program budget management will receive training on the updated procedures and Uniform Guidance requirements. Supporting documentation and evidence of review and approval will be retained with the expenditure records. Responsible for Corrective Action: Shruti Jha, Senior Director of Finance Gina Macanlalay, Director of Family Achievement Program Laura D’Ambrogi, Grants Manager Anticipated Completion Date: December 31, 2026

View Audit 406238

Finding 1222644 (2025-006)

Material Weakness 2025

Jones County Junior College

MS

Student Financial Aid Matching / Level of Effort / Earmarking Special Tests & Provisions § 200.303

The College acknowledges the finding and agrees that verification procedures must include documented evidence of completion and supervisory review. The condition resulted from the absence of formal procedures and lack of retained documentation evidencing completion and review of verification activit...

The College acknowledges the finding and agrees that verification procedures must include documented evidence of completion and supervisory review. The condition resulted from the absence of formal procedures and lack of retained documentation evidencing completion and review of verification activities. The College is in the process of implementing enhanced controls over verification procedures. Formal policies and procedures will be established to define responsibilities, documentation requirements, and supervisory review expectations. Each verification file will require documented evidence of completion and review, including electronic sign-off or system-based approval. In addition, the College will implement quality control measures, including systematic validations and periodic supervisory reviews, with documentation retained to evidence the scope and results of such reviews. Implementation of these procedures began in April 2026 and was not in place for the full fiscal year. Fiscal year 2026 represents a transition period during which controls are being implemented and refined. Full implementation is expected for the 2026–2027 award year. These actions are intended to ensure that verification procedures are consistently applied, properly documented, and subject to appropriate review, and to prevent recurrence.

View Audit 406216

Finding 1222642 (2025-005)

Material Weakness 2025

Jones County Junior College

MS

Student Financial Aid Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303

The College acknowledges the finding and agrees that Return of Title IV Funds (R2T4) calculations and related return activity must be accurately calculated, properly documented, and fully traceable. The condition resulted from the absence of formal procedures, lack of documented supervisory review, ...

The College acknowledges the finding and agrees that Return of Title IV Funds (R2T4) calculations and related return activity must be accurately calculated, properly documented, and fully traceable. The condition resulted from the absence of formal procedures, lack of documented supervisory review, and insufficient documentation and reconciliation of student-level return activity. The College is in the process of implementing enhanced controls over the R2T4 process. A monthly structured workflow has been established whereby the Office of Financial Aid prepares and provides a detailed listing of students subject to R2T4 calculations, including institutional return amounts. Accounting independently reviews and verifies the calculated return amounts and processes the return through the federal system, with documented review and approval. The College has eliminated undocumented manual netting adjustments and requires that all R2T4 returns be recorded as distinct transactions supported by a standardized documentation package, including studentlevel calculations, withdrawal determination dates, and institutional return amounts. All activity is maintained in a centralized electronic repository to ensure a complete audit trail. In addition, the College is formalizing written procedures to define roles and responsibilities, establish documentation standards, and require documented supervisory review and approval. Periodic reconciliations will be performed to ensure that student-level return amounts agree to system activity and federal cash activity. Implementation of these procedures began in April 2026 and was not in place for the full fiscal year. Fiscal year 2026 represents a transition period during which controls are being implemented and refined. Full implementation is expected for the 2026–2027 award year. These actions are intended to ensure that R2T4 calculations and returns are accurate, properly documented, fully traceable, and compliant with federal requirements, and to prevent recurrence.

View Audit 406216

Finding 1222638 (2025-003)

Material Weakness 2025

Jones County Junior College

MS

Student Financial Aid Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303

The College acknowledges the finding and agrees that Cost of Attendance and Satisfactory Academic Progress determinations must be calculated, documented, and reviewed in accordance with federal requirements. The condition resulted from reliance on manual processes, lack of retained supporting docume...

The College acknowledges the finding and agrees that Cost of Attendance and Satisfactory Academic Progress determinations must be calculated, documented, and reviewed in accordance with federal requirements. The condition resulted from reliance on manual processes, lack of retained supporting documentation, and absence of independent review and approval. The College is in the process of implementing enhanced controls over COA and SAP determinations. Formal policies and procedures will be established to define methodologies, documentation requirements, and responsibilities for preparation and review. The College will work with Information Technology and third-party consultants to enhance system configuration and develop automated processes to support calculation and retention of COA and SAP determinations within a controlled environment. In addition, the College will implement quality control measures, including a COA review committee, systematic validations and documented supervisory review, and will retain sufficient supporting documentation to allow for independent recalculation and verification of eligibility determinations. Implementation of these procedures began in April 2026 and was not in place for the full fiscal year. Fiscal year 2026 represents a transition period during which controls are being implemented and refined. Full implementation is expected for the 2026–2027 award year. These actions are intended to ensure that eligibility determinations are accurate, properly supported, and compliant with federal requirements, and to prevent recurrence.

View Audit 406216

Finding 1222636 (2025-002)

Material Weakness 2025

Jones County Junior College

MS

Cash Management Student Financial Aid Matching / Level of Effort / Earmarking § 200.302 § 200.303 § 200.305

The College acknowledges the finding and agrees that formal cash management controls are required to ensure that Title IV funds are drawn only for immediate cash needs and are properly supported and documented. The condition resulted from the absence of documented procedures and inconsistent executi...

The College acknowledges the finding and agrees that formal cash management controls are required to ensure that Title IV funds are drawn only for immediate cash needs and are properly supported and documented. The condition resulted from the absence of documented procedures and inconsistent execution of draw preparation, review, approval, and reconciliation processes. The College is in the process of implementing enhanced controls over cash management. Formal written procedures are being established to govern draw calculations, timing, approvals, supporting documentation, reconciliation requirements, and identification and return of excess cash. A standardized draw file will be maintained for each draw, including supporting student-level disbursement detail, reconciliation to eligible expenditures, and documented supervisory approval. The College will also perform and document monthly reconciliations between student disbursement records and federal cash activity. Cash balances will be monitored to ensure funds are drawn only for immediate needs and that excess cash is identified and returned, as necessary. Implementation of these procedures began in April 2026 and was not in place for the full fiscal year. Fiscal year 2026 represents a transition period during which controls are being implemented and refined. Full implementation is expected for the 2026–2027 award year. These actions are intended to ensure that draw amounts are accurate, properly supported, and compliant with federal requirements, and to prevent recurrence.

View Audit 406216

Finding 1222633 (2025-003)

Material Weakness 2025

Center for Cultural & Technical Interchange Between East & West, INC

HI

Eligibility Significant Deficiency Matching / Level of Effort / Earmarking

View of Responsible Officials: Management agrees with the finding and recommendation. Corrective Action Plan: East-West Center will designate the International Programs Specialist (coordinator of the Graduate Degree Fellowships) to prepare the list of selected students to be offered scholarships dem...

View of Responsible Officials: Management agrees with the finding and recommendation. Corrective Action Plan: East-West Center will designate the International Programs Specialist (coordinator of the Graduate Degree Fellowships) to prepare the list of selected students to be offered scholarships demonstrating clearly that the selections meet the ratio requirement. The Dean of the Education Program will be required to sign off on the list, checking to ensure that the ratio of students meets our designated mandate. If students decline our initial offer, each alternate also will be vetted by the Dean to ensure the balance is maintained. If there is funding uncertainty up until the date required to send invitations, and a different funding source is used as an alternative or backstop, the program will bring these students on a J-visa so that they are able to shift to Federal funds at a later date to ensure that the ratio is maintained. 27 Contact Person: Director and Dean of Professional Development and Education Programs Anticipated Completion Date: May 2026 28

View Audit 406213

Finding 1222625 (2025-005)

Material Weakness 2025

Disability Rights South Dakota

SD

Questioned Costs Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Finding No. 2025-005: Matching Compliance Controls Responsible Individuals: Carrie Watts, Fiscal and Grant Manager Corrective Action Plan: The Organization will establish and maintain documentation to support in-kind/matching balances. Anticipated Completion Date: September 30, 2026

View Audit 406207

Finding 1222600 (2025-002)

Material Weakness 2025

City of Chillicothe

OH

Cash Management Matching / Level of Effort / Earmarking § 200.1 § 200.208 § 200.305

The City will create a federal cash management policy. A review of cash will be done monthly.

View Audit 406187

Finding 1222537 (2025-007)

Material Weakness 2025

Commonwealth of Puerto Rico Department of Natural and Environmental Resources

PR

Matching / Level of Effort / Earmarking

VIEWS OF RESPONSIBLE OFFICIALS The Puerto Rico Department of Education (PRDE) acknowledges the audit finding presented by the auditors regarding the 5% state administrative matching requirement under the Perkins V program (Assistance Listing No. 84.048). The PRDE respectfully clarifies that the GL-2...

VIEWS OF RESPONSIBLE OFFICIALS The Puerto Rico Department of Education (PRDE) acknowledges the audit finding presented by the auditors regarding the 5% state administrative matching requirement under the Perkins V program (Assistance Listing No. 84.048). The PRDE respectfully clarifies that the GL-200 Report and the related supporting documentation for the administrative matching expenditures do exist and are available within the Department's accounting records, reconciled through the Treasury Department's main system. The PRDE maintains an ongoing compliance monitoring process over the 5% administrative matching requirement established in its State Plan, and the results of this monitoring have been shared both with the Perkins V program office at PRDE and with the U.S. Department of Education as the cognizant federal agency. The PRDE acknowledges, however, that the GL-200 Report was not provided to the auditors within the requested timeframe, which prevented the auditors from corroborating the disbursement of the matching funds during the course of their procedures. The Department recognizes that the timely retrieval and delivery of this type of supporting documentation to auditors is an area that requires strengthening going forward, and is committed to improving its internal coordination to ensure that documentation already maintained by the Department, such as the GL-200 Report, is made available promptly upon request in future audit cycles. IMPLEMENTATION DATE Fiscal Year 2025-2026 RESPONSIBLE PERSON Jorge L. Acosta Irizarry Director of Occupational and Technical Education Evelyn E. Rodríguez Cardé Director of Finance

View Audit 406169

Finding 1222536 (2025-006)

Material Weakness 2025

Commonwealth of Puerto Rico Department of Natural and Environmental Resources

PR

Matching / Level of Effort / Earmarking § 200.302

VIEWS OF RESPONSIBLE OFFICIALS The Puerto Rico Department of Education (PRDE) acknowledges the audit finding presented by the auditors regarding the Maintenance of Effort requirement under the IDEA Special Education Cluster (Assistance Listing Nos. 84.027 and 84.173). The PRDE respectfully clarifies...

VIEWS OF RESPONSIBLE OFFICIALS The Puerto Rico Department of Education (PRDE) acknowledges the audit finding presented by the auditors regarding the Maintenance of Effort requirement under the IDEA Special Education Cluster (Assistance Listing Nos. 84.027 and 84.173). The PRDE respectfully clarifies that the State financial support figures reported in the Annual State Application for FFY 2024 were calculated and supported by the underlying budgetary and expenditure records maintained by the Department. The information used in the Maintenance of Effort computation does exist and was compiled in accordance with the Department's internal recordkeeping practices. However, the PRDE acknowledges that the supporting documentation for the full reported amount was not assembled and made available to the auditors within the requested timeframe. The deficiency identified relates to the timeliness and organization of document retrieval and submission, rather than to the absence of the underlying support, the majority of which ($344,509,000 of $350,153,444) was in fact furnished during the audit. IMPLEMENTATION DATE Fiscal Year 2025-2026 RESPONSIBLE PERSON Enid Diaz Nieves Executive Director III Administration and Transportation Unit Alayra Figueroa Gonzalez Associate Secretary for Special Education

View Audit 406169

Finding 1222517 (2025-001)

Material Weakness 2025

Commonwealth of Puerto Rico Department of Natural and Environmental Resources

PR

Matching / Level of Effort / Earmarking Questioned Costs Subrecipient Monitoring § 200.302 § 200.403

VIEWS OF RESPONSIBLE OFFICIALS The Puerto Rico Department of Education (PRDE) acknowledges the audit findings presented by the auditors regarding the Activities Allowed or Unallowed / Allowable Costs/Cost Principles compliance requirement under the IDEA Special Education Cluster (Assistance Listing ...

VIEWS OF RESPONSIBLE OFFICIALS The Puerto Rico Department of Education (PRDE) acknowledges the audit findings presented by the auditors regarding the Activities Allowed or Unallowed / Allowable Costs/Cost Principles compliance requirement under the IDEA Special Education Cluster (Assistance Listing Nos. 84.027 and 84.173). The PRDE recognizes that certain deficiencies identified by the auditors relate to inconsistencies in supporting documentation, documentation retained in departmental systems, and the need to strengthen administrative controls over the documentation supporting disbursements for private educational and therapy services. The Department further acknowledges opportunities to improve the consistency of information maintained in supporting schedules, contract documentation, proposals, and other records used during the invoice review and payment process. The PRDE respectfully clarifies that, in several instances identified during the audit, the questioned conditions were attributable to documentation inconsistencies, system-generated reporting errors, or documentation that supports the transactions but was not maintained or presented in a standardized manner during the audit process. Specifically, the Department notes that adjustment reports recorded in the financial system agreed with the disbursement vouchers despite errors identified in certain Excel master schedules; that invoice validations performed by the Centers are based on the corresponding "Carta de Aprobación de Consulta de Ubicación," which establishes the approved services and applicable rates for each student; and that federal regulations authorize IDEA Part B (ALN 84.027) funds to be used for eligible children ages 3 through 21, including expenses otherwise allowable under the Preschool Grant (ALN 84.173), as permitted under 34 CFR §300.202(a). With respect to students identified as over 21 years of age, the PRDE conducted an individual review of the affected student records and determined that the population includes students who exited the program at age 21 as well as students for whom documentation exists supporting the continuation of services through individualized educational determinations, transition planning activities, or compensatory educational services. The Department recognizes, however, that documentation supporting these determinations was not maintained in a standardized manner that facilitated timely retrieval during the audit. The PRDE further acknowledges that improvements are needed to ensure that procurement documentation, contract amendments, proposals, invoice support, Excel master schedules, and student-level supporting documentation are complete, accurate, consistent, and readily available for audit and monitoring purposes. Accordingly, the Department accepts the auditors' recommendations and is committed to implementing corrective actions designed to strengthen internal controls, standardize documentation practices, improve supervisory review procedures, and enhance coordination among the responsible program and administrative units IMPLEMENTATION DATE Fiscal Year 2026-2027 RESPONSIBLE PERSON Enid Diaz Nieves Executive Director III Alayra Figueroa Gonzalez Associate Secretary for Special Education

View Audit 406169

Finding 1222294 (2025-006)

Material Weakness 2025

Jackson County, Florida

FL

Matching / Level of Effort / Earmarking Special Tests & Provisions Questioned Costs § 200.303

Lynsey Darragh – Administrative Services Director and Lucas Mayo – Grant Administrator will develop procedures to obtain and review certified payrolls for construction projects to ensure compliance with the wage rate requirements. Anticipated completion date is July 31, 2026.

View Audit 406113

Finding 1222287 (2025-005)

Material Weakness 2025

Jackson County, Florida

FL

Matching / Level of Effort / Earmarking Questioned Costs Reporting § 200.303 § 200.326

Lynsey Darragh - Administrative Services Director, Lucas Mayo – Grant Administrator and Tony Pumphrey – Finance Director will develop procedures to ensure that all program reports have documented reviews; are submitted timely and that are reconciled to the accounting records before submission. Antic...

Lynsey Darragh - Administrative Services Director, Lucas Mayo – Grant Administrator and Tony Pumphrey – Finance Director will develop procedures to ensure that all program reports have documented reviews; are submitted timely and that are reconciled to the accounting records before submission. Anticipated completion date is July 31, 2026.

View Audit 406113

Finding 1222232 (2025-002)

Material Weakness 2025

North East Community Action Corporation and Subsidiaries

MO

Subrecipient Monitoring Reporting Significant Deficiency

U.S. Department of Agriculture: ALN-10.415 Rural Rental Housing Loan Program Significant Noncompliance – Reporting A. Comments on Findings and Recommendations: We concur with the auditor’s suggestions for filing reports by the dates outlined in the grant agreements. B. Actions Taken or Planned: Mana...

U.S. Department of Agriculture: ALN-10.415 Rural Rental Housing Loan Program Significant Noncompliance – Reporting A. Comments on Findings and Recommendations: We concur with the auditor’s suggestions for filing reports by the dates outlined in the grant agreements. B. Actions Taken or Planned: Management will continue to evaluate their processing and oversight controls with respect to current federal awards and requirements to ensure required program reporting is submitted timely and in accordance with required deadlines. Anticipated completion date: Immediately Responsible party: Vicky Pritchett, Finance Director Contact information for this finding: Vicky Pritchett, Finance Director at 573-213-4811 extension #10102 with questions regarding this plan.

View Audit 406104

Corrective Action Plans

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