Corrective Action Plans

Finding 1215823 (2025-024)

Material Weakness 2025

State of Connecticut Drinking Water Fund - State Revolving Fund

CT

Internal Control / Segregation of Duties Questioned Costs Cash Management § 200.303 § 200.403

Recommendation: The Department of Developmental Services should strengthen internal controls to ensure it obtains the required signatures for the individual plan for all Money Follows the Person Rebalancing Demonstration recipients. The Department of Social Services should conduct an audit of the me...

Recommendation: The Department of Developmental Services should strengthen internal controls to ensure it obtains the required signatures for the individual plan for all Money Follows the Person Rebalancing Demonstration recipients. The Department of Social Services should conduct an audit of the medical provider in accordance with Section 17b-99 of the Connecticut General Statutes to ensure integrity of the Money Follows the Person Rebalancing Demonstration program. Corrective Action Plan as Reported by the Department of Developmental Services: DDS agrees with the finding. The errors were attributed to current manual processes and case management oversight regarding documenting signatures when individual plan (IP) meetings are held remotely rather than in-person. Most of the deficiencies (5 of 6) were isolated to one case manager. The MFP division is small with 3-4 case managers, causing a higher error rate when extrapolated against the sample size. The missing support service records have been forwarded to the Department of Administrative Services for research. There are plans to improve the individual plan process to enhance internal controls through automation. In the interim, case managers and case manager supervisors will be reminded of the IP signature requirements. Department of Developmental Services Anticipated Completion Date: June 30, 2026 Department of Developmental Services Contact Person: Krista Ostaszeski, Health Management Administrator (860) 418-6066 Wayne Siedel, Director of Service Development and Support (860) 418-6041 Corrective Action Plan as Reported by the Department of Social Services: The Department agrees with this finding and the response provided by the Department of Developmental Services. Additional research is needed to determine whether the missing documentation was the provider's responsibility or was due to a billing issue. The Department of Developmental Services is coordinating with the Department of Administrative Services to research this further. Department of Social Services Anticipated Completion Date: December 31, 2026 Department of Social Services Contact Person: Christine Weston, Program Division Director (860) 424-5012

View Audit 402418

Finding 1215786 (2025-100)

Material Weakness 2025

State of Connecticut Drinking Water Fund - State Revolving Fund

CT

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Questioned Costs § 200.317 § 200.403

Recommendation: The Department of Transportation should strengthen internal controls over consultant payments for extra work. Corrective Action Plan as Reported by the Department of Transportation: The CTDOT Transit Design Unit has immediately put in-place a corrective action plan, which will be com...

Recommendation: The Department of Transportation should strengthen internal controls over consultant payments for extra work. Corrective Action Plan as Reported by the Department of Transportation: The CTDOT Transit Design Unit has immediately put in-place a corrective action plan, which will be completed by January 30, 2026. As part of this action plan, when signing off on invoices in the future, the Project Manager will ensure the date of the invoice refers to the correct payment mechanism or extra work letter in accordance with our established policies. This will strengthen internal controls and reviews over payments for all fee letters to ensure it follows established policies and only pay for properly authorized extra work. In addition to internal actions, the consultant project team will be counseled for submitting an invoice that does not follow CTDOT policies. Anticipated Completion Date: January 30, 2026 Department of Transportation Contact Person: Jonathan Kang, Transportation Supervising Engineer Jonathan.Kang@ct.gov, (860) 594-2754

View Audit 402418

Finding 1215785 (2025-575)

Material Weakness 2025

State of Connecticut Drinking Water Fund - State Revolving Fund

CT

Subrecipient Monitoring Matching / Level of Effort / Earmarking § 200.303 § 200.306 § 200.332

Recommendation: The Judicial Branch should strengthen internal controls to ensure it complies with federal subrecipient monitoring requirements for the Crime Victim Assistance program. Corrective Action Plan as Reported by the Judicial Branch: The Judicial Branch Office of Victim Services (OVS) agre...

Recommendation: The Judicial Branch should strengthen internal controls to ensure it complies with federal subrecipient monitoring requirements for the Crime Victim Assistance program. Corrective Action Plan as Reported by the Judicial Branch: The Judicial Branch Office of Victim Services (OVS) agrees to strengthen its internal controls as described below to comply with federal subrecipient monitoring requirements for the Victims of Crime Act Assistance (VOCA) Program. In 2025, OVS performed site visits for four VOCA-funded programs and completed financial-desk reviews of monthly or quarterly financial reports for all programs. That year, OVS experienced personnel turnover in its three-employee Fiscal Services Unit, notably the separation from state service of a Program Manager and a Court Planner, who together performed OVS’ programmatic site visits of VOCA-funded programs. Also, there was a significant increase in workload resulting from OVS’ contributions to the 2024-2025 VOCA request-for-proposal process. In response, staff outside the unit contributed while managing other assigned duties, a Program Manager and Grants and Contract Specialist were hired to restore the unit to its three-employee configuration, the new employees received training on subrecipient monitoring policies and procedures, and a revised subrecipient site visit plan was developed and has begun being implemented. To strengthen internal controls, OVS has developed a revised site visit plan for the remaining VOCA-funded programs scheduled to receive site visits in 2025. April 15, 2026, is the anticipated date for OVS to complete the site visits. OVS has completed sending letters to the subrecipients operating the VOCA-funded programs. The letters request supporting documentation, which is programmatic and financial in nature, in accordance with OVS administrative policy and procedure. Also, the letters inform subrecipients that site visits will commence in accordance with a revised site visit plan. Anticipated Completion Date: April 15, 2026 Judicial Branch Contact Person: Marc Pelka, Office of Victim Services Director marc.pelka@jud.ct.gov (860) 263-2760

View Audit 402418

Finding 1215774 (2025-028)

Material Weakness 2025

State of Connecticut Drinking Water Fund - State Revolving Fund

CT

Questioned Costs Special Tests & Provisions Equipment & Real Property Management § 200.303

Recommendation: The Department of Social Services should strengthen internal controls to ensure that it consistently secures, tracks, and records returned cards for the Summer EBT program. Corrective Action Plan as Reported by the Department of Social Services: The Department agrees with this findin...

Recommendation: The Department of Social Services should strengthen internal controls to ensure that it consistently secures, tracks, and records returned cards for the Summer EBT program. Corrective Action Plan as Reported by the Department of Social Services: The Department agrees with this finding. However, the Department believes that there are proper internal controls to ensure the security of returned cards. There was no log maintained by the Department but the controls in place reduced the risk of benefits being used incorrectly to an acceptable level. The returned cards were destroyed, and all unused benefits were expunged. Anticipated Completion Date: N/A Department of Social Services Contact Person: Andy Davis, Fiscal Administrative Manager 2 860-424-5709

View Audit 402418

Finding 1215773 (2025-027)

Material Weakness 2025

State of Connecticut Drinking Water Fund - State Revolving Fund

CT

Internal Control / Segregation of Duties Questioned Costs Eligibility § 200.303

Recommendation: The Department of Social Services should strengthen internal controls to identify the agency responsible for each client’s eligibility determination and document benefit iteration approvals for the Summer Electronic Benefits Transfer Program for Children. Corrective Action Plan as Re...

Recommendation: The Department of Social Services should strengthen internal controls to identify the agency responsible for each client’s eligibility determination and document benefit iteration approvals for the Summer Electronic Benefits Transfer Program for Children. Corrective Action Plan as Reported by the Department of Social Services: The Department disagrees with this finding. Condition #1: Eligibility for the Summer EBT program is established through multiple pathways: receipt of Supplemental Nutrition Assistance Program (SNAP) benefits, Temporary Family Assistance (TFA), or HUSKY A coverage, and through applying for and receiving an eligibility determination for either the National School Lunch Program or the Summer EBT program itself. Determining eligibility is a shared responsibility between DSS and the State Department of Education (SDE), and children qualify through multiple pathways simultaneously. DSS maintains a record within its eligibility system and compiles reports of all eligible children. When eligibility is established through any additional means, the child’s record is then analyzed against all previous issuances to ensure duplicate participation and double issuance does not occur. Title 7 CFR Part 292.16 (a)(5)(i) requires the Summer EBT agency to establish a master issuance file which contains all information needed to identify eligible children, issue Summer EBT benefits, record the participation activity for each household and supply all information necessary to fulfill reporting requirements. The agency is not required to specify which program(s) were used to determine eligibility, which is reasonable given that there may be multiple overlapping avenues of eligibility. The implication that DSS is somehow not compliant or able to identify the source of eligibility is inaccurate. DSS can identify this information on an individual basis through reviewing the child’s receipt of SNAP, TFA, HUSKY A, or through its ongoing coordination and communication with SDE. Condition #2: It is not a requirement of the business systems division to request approval for each issuance. Each year the Department issues benefits for this program in a consistent manner. Since there were no changes to the process during the audit period, approval was not sought for the issuances. Business systems would only seek approval if there was a change to the process. Anticipated Completion Date: N/A Department of Social Services Contact Person: Dan Giacomi, Program Division Director 860-424-5080

View Audit 402418

Finding 1215726 (2025-003)

Material Weakness 2025

Baldwin Care Center, Inc.

WI

Matching / Level of Effort / Earmarking

2025-003 – Noncompliance with Required Debt Covenant Financial Ratio Federal Agency: U.S. Department of Agriculture, Rural Development, CFDA #10.766 Community Facilities Loans and Grants Cluster Corrective Action Plan: Management will continue to evaluate the Facility’s resident mix and manage resid...

2025-003 – Noncompliance with Required Debt Covenant Financial Ratio Federal Agency: U.S. Department of Agriculture, Rural Development, CFDA #10.766 Community Facilities Loans and Grants Cluster Corrective Action Plan: Management will continue to evaluate the Facility’s resident mix and manage resident days while continuing to contain related variable and fixed expenses to increase the Facility’s profitability. Responsible Party: Mariah Voeltz, Administrator Estimated completion date: June 30, 2026

View Audit 402402

Finding 1215718 (2025-001)

Material Weakness 2025

Indiana Association of Soil and Water Conservation Districts, Inc.

IN

Matching / Level of Effort / Earmarking

Auditee: Indiana Association of Soil and Water Conservation Districts, Inc. Audit Firm: Agresta, Storms & O’Leary, PC Audit Period Ended September 30, 2025 Corrective Action Plan Prepared by: Name: Elizabeth Rice Position: Executive Director, Indiana Association of Soil and Water Conservation Distri...

Auditee: Indiana Association of Soil and Water Conservation Districts, Inc. Audit Firm: Agresta, Storms & O’Leary, PC Audit Period Ended September 30, 2025 Corrective Action Plan Prepared by: Name: Elizabeth Rice Position: Executive Director, Indiana Association of Soil and Water Conservation Districts, Inc. Telephone Number: 317-692-7325 A. Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Finding No. 2025-001 A. Comments on the Finding and Each Recommendation: Management agrees with the finding which was internally discovered during review of month end bank reconciliation. B. Action Taken or Planned on the Finding: Subsequent to year end, the Association reduced the December 2025 claim to account for the overpayment. Management will ensure any future discrepancies with claims are remedied in a timely manner.

View Audit 402382

Finding 1215693 (2025-001)

Material Weakness 2025

Home Share 092-Hd017

MN

HUD Housing Programs Cash Management Material Weakness

Supportive Housing for Persons with Disabilities (Section 811) – Assistance Listing No. 14.181 Recommendation: We recommend that management establish and implement formal written policies and procedures to ensure surplus cash is either used to pay down debts subject to surplus cash or deposited in t...

Supportive Housing for Persons with Disabilities (Section 811) – Assistance Listing No. 14.181 Recommendation: We recommend that management establish and implement formal written policies and procedures to ensure surplus cash is either used to pay down debts subject to surplus cash or deposited in the residual receipts reserve in a timely manner in accordance with HUD requirements and the project’s Regulatory Agreement. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We have strengthened our internal controls by implementing a documented audit trail and a formal monthly reconciliation process for all intercompany activity between Home Share and Accord. Each month, the Contract Accountant prepares and submits to the Vice President of Finance a summary of the year to date activity along with the full outstanding intercompany balance, including prior year amounts. The Vice President of Finance reviews this reconciliation against the Home Share account balances to determine the amount that can be transferred to reduce the intercompany liability in accordance with HUD surplus cash requirements. Once the transfer is approved and completed, the Contract Accountant receives confirmation along with a copy of the ACH transaction to document the transaction. This process is performed and documented as part of each month end close to ensure timely, accurate, and compliant surplus cash transfers. Name(s) of the contact person(s) responsible for corrective action: Jes Cuoco Planned completion date for corrective action plan: May 31, 2025

View Audit 402351

Finding 1215687 (2025-003)

Material Weakness 2025

CITY OF LICKING

MO

Questioned Costs Procurement, Suspension & Debarment Allowable Costs / Cost Principles

The City agrees with the finding and will implement the following: (1) develop written policies and procedures to ensure compliance with Uniform Guidance (2 CFR 200), (2) formally adopt the policies and procedures, and (3) distribute policies and train staff on the new procudures.

View Audit 402340

Finding 1215593 (2025-001)

Material Weakness 2025

Winter Grove, Inc.

CT

Questioned Costs Cash Management Eligibility

Project Legal Name: Winter Grove, Inc. HUD Project No.: 017-EE118 Audit Firm: Cohn Reznick Period covered by the audit: 12/31/2025 Corrective Action Plan prepared by: Name: Arlene Lawrence Position: Chief Financial Officer Telephone Number: 203-562-4514 The following is a recommended format to be fo...

Project Legal Name: Winter Grove, Inc. HUD Project No.: 017-EE118 Audit Firm: Cohn Reznick Period covered by the audit: 12/31/2025 Corrective Action Plan prepared by: Name: Arlene Lawrence Position: Chief Financial Officer Telephone Number: 203-562-4514 The following is a recommended format to be followed by the auditee for preparing a corrective action plan: 1. Finding 2025-001 a. Comments on the Finding and Each Recommendation During the year ended December 31, 2025, the Corporation paid expenses in the amount of $305 on behalf of an affiliate from project cash without HUD approval. The amount due to the Project as of December 31, 2025 is $305. b. Action(s) Taken or Planned on the Finding This finding has been corrected and the affiliate reimbursed the property within the first quarter of 2026.

View Audit 402286

Finding 1215561 (2025-004)

Material Weakness 2025

General John J Pershing Memorial Hospital Association

MO

Cash Management Questioned Costs Procurement, Suspension & Debarment § 200.305

Personnel Responsible for Corrective Action: Karla Clubine, Chief Executive Officer, David Cichocki, Chief Financial Officer Anticipated Completion Date: June 30, 2026 Views of Responsible Officials and Planned Corrective Action: Management accepts the recommendation. The Hospital will strengthen it...

Personnel Responsible for Corrective Action: Karla Clubine, Chief Executive Officer, David Cichocki, Chief Financial Officer Anticipated Completion Date: June 30, 2026 Views of Responsible Officials and Planned Corrective Action: Management accepts the recommendation. The Hospital will strengthen its federal grant cash management procedures and will perform and document cost verification prior to all federal grant drawdowns beginning in fiscal year 2026.

View Audit 402223

Finding 1215560 (2025-003)

Material Weakness 2025

General John J Pershing Memorial Hospital Association

MO

Reporting Internal Control / Segregation of Duties Questioned Costs § 200.303

Personnel Responsible for Corrective Action: Karla Clubine, Chief Executive Officer, David Cichocki, Chief Financial Officer Anticipated Completion Date: June 30, 2026 Views of Responsible Officials and Planned Corrective Action: Management accepts the recommendation. It will implement a review and ...

Personnel Responsible for Corrective Action: Karla Clubine, Chief Executive Officer, David Cichocki, Chief Financial Officer Anticipated Completion Date: June 30, 2026 Views of Responsible Officials and Planned Corrective Action: Management accepts the recommendation. It will implement a review and reconciliation process of the required reports to the underlying grant and accounting records.

View Audit 402223

Finding 1215558 (2025-005)

Material Weakness 2025

General John J Pershing Memorial Hospital Association

MO

Matching / Level of Effort / Earmarking Questioned Costs § 200.303

Personnel Responsible for Corrective Action: Karla Clubine, Chief Executive Officer, David Cichocki, Chief Financial Officer Anticipated Completion Date: Completed. Views of Responsible Officials and Planned Corrective Action: The Hospital now has an automatic monthly transfer set to move $4,400 fro...

Personnel Responsible for Corrective Action: Karla Clubine, Chief Executive Officer, David Cichocki, Chief Financial Officer Anticipated Completion Date: Completed. Views of Responsible Officials and Planned Corrective Action: The Hospital now has an automatic monthly transfer set to move $4,400 from the operating account to the debt service account. Additionally, the fiscal year 2026 budget includes an expense assumption to set aside $4,400 per month into the debt service account.

View Audit 402223

Finding 1215556 (2025-001)

Material Weakness 2025

Nexus Recovery Center Inc.

TX

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Reporting

Finding 2025-001: Allowable Cost – Significant Deficiency in Internal Controls Over Compliance Program: Block Grants for Prevention and Treatment of Substance Abuse (ALN 93.959) Management Response: Management concurs with the finding. The exceptions identified resulted from a lapse in execution of ...

Finding 2025-001: Allowable Cost – Significant Deficiency in Internal Controls Over Compliance Program: Block Grants for Prevention and Treatment of Substance Abuse (ALN 93.959) Management Response: Management concurs with the finding. The exceptions identified resulted from a lapse in execution of established approval procedures, as 2 of the 25 sampled credit card transactions charged to the grant did not include documented supervisory approval prior to payment. However, compensating controls existed, including Finance Department review of all expenditures prior to payment of the Brex account and additional review of expenses charged to the grant during preparation of monthly grant invoices and reporting. No unallowable costs or, questioned costs, were identified. To remediate the finding, all supervisors have received additional training and reminders regarding requirements for timely review and approval of expenditures prior to payment processing. In addition, the accounting team has implemented procedures prohibiting payment processing until all required approvals have been completed and documented. Management believes these enhanced controls strengthen adherence to existing policies and reduce the likelihood of recurrence. Management notes that the supervisor associated with the exceptions is no longer employed by the Organization; however, corrective actions focus on strengthening processes and controls rather than reliance on personnel changes. Corrective Action Planned/Implemented: • Refresher training provided to supervisors regarding expenditure review and approval requirements. • Accounting procedures updated to prevent payment processing prior to completion and documentation of all required approvals. • Existing accounting department monitoring procedures will continue, including review of expenditures before payment and grant expenditure review during monthly reporting. Responsible Party: Controller / Accounting Department Implementation Date: Implemented as of April 2026

View Audit 402221

Finding 1215547 (2025-001)

Material Weakness 2025

Port Authority of the City of St. Paul

MN

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

Material Weakness – Suspension and Debarment Recommendation: We recommend the Port re-implement its previous controls of using a tracking checklist and retaining documentation of the verification process. Explanation of disagreement with audit finding: There is no disagreement with the audit finding...

Material Weakness – Suspension and Debarment Recommendation: We recommend the Port re-implement its previous controls of using a tracking checklist and retaining documentation of the verification process. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The Port Authority will revise their process to ensure controls are in place and documentation is retained. Name of the contact person responsible for corrective action: Jan Almquist, Controller. Planned completion date for corrective action plan: December 31, 2026

View Audit 402217

Finding 1215492 (2025-005)

Material Weakness 2025

South Big Horn Hospital District

WY

Questioned Costs Reporting Significant Deficiency

2025-005 - Reporting Corrective Action Plan: Management agrees with the finding and has committed the resources giving rise to the finding. Person(s) Responsible: M. Michael Garza Timing for Implementation: June 30, 2026.

View Audit 402151

Finding 1215478 (2025-001)

Material Weakness 2025

First Rising Mt. Zion Baptist Church Housing Corp.

DC

HUD Housing Programs Cash Management Significant Deficiency

Recommendation: We recommend that First Rising Mount Zion Baptist Church Housing Corporation, Inc. design and implement controls to prevent non-compliance with HUD requirements surrounding surplus cash deposits such as recalculating surplus cash at the end of the year after all transactions have bee...

Recommendation: We recommend that First Rising Mount Zion Baptist Church Housing Corporation, Inc. design and implement controls to prevent non-compliance with HUD requirements surrounding surplus cash deposits such as recalculating surplus cash at the end of the year after all transactions have been posted. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: First Rising Mount Zion Baptist Church Housing Corporation, Inc. T/A Gibson Plaza Apartments will implement enhanced internal controls to ensure compliance with HUD requirements related to surplus cash calculations and deposits. Specifically: - Management will perform a final recalculation of surplus cash at year-end after all accounting transactions have been recorded and reviewed. - A standardized checklist will be developed and utilized to ensure that all required steps in the surplus cash calculation process are completed accurately. - The surplus cash calculation will be reviewed and approved by a secondary individual independent of the preparer to ensure accuracy and compliance. Name(s) of the contact person(s) responsible for corrective action: Asa Ewings Planned completion date for corrective action plan: 5/31/2026

View Audit 402124

Finding 1215475 (2025-001)

Material Weakness 2025

Tufts Medical Center Inc. and Affiliates

MA

Eligibility Questioned Costs Student Financial Aid

RE: Funding 2025-001 – Incorrect student status, Corrective Action Plan To whom it may concern: Student Financial Assistance Cluster (ALNs: 84.063 and 84.268) Management concurs with the findings. Management acknowledges that the condition identified is primarily attributable to staff turnover assoc...

RE: Funding 2025-001 – Incorrect student status, Corrective Action Plan To whom it may concern: Student Financial Assistance Cluster (ALNs: 84.063 and 84.268) Management concurs with the findings. Management acknowledges that the condition identified is primarily attributable to staff turnover associated with the closure of the school, which resulted in disruptions to established processes and reduced the effectiveness of controls over the determination and documentation of student eligibility. Management has ensured the appropriate reporting has now been made to the NSLDS. The SFA program has been terminated and therefore will not impact future audits. Leadership Responsible: Colleen Walsh Dean, Student and Alumni Services Lawrence Memorial/Regis College (781) 979-3000 Anticipated Completion date: May 30, 2026

View Audit 402115

Finding 1215463 (2025-006)

Material Weakness 2025

Delta Research and Educational Foundation

DC

Allowable Costs / Cost Principles Questioned Costs Material Weakness § 200.430

Views of Responsible Officials: All the Foundation's employees now complete an excel timesheet that is then submitted to their supervisor for review and approval. Payroll is processed only after all employee timesheets are approved and received by the Senior Accountant who processes payroll.

View Audit 402102

Finding 1215411 (2025-001)

Material Weakness 2025

Baltimore Regional Housing Partnership, Inc.

MD

Reporting Questioned Costs Subrecipient Monitoring

Audit Finding Reference: 2025 - 001 Planned Corrective Action: BRHP continues weekly reporting of all 50058 actions to identify any files where the 60-day deadline is approaching. PIC uploads continue to occur weekly. Starting this year and going forward, if any files approach or exceed the 60-day s...

Audit Finding Reference: 2025 - 001 Planned Corrective Action: BRHP continues weekly reporting of all 50058 actions to identify any files where the 60-day deadline is approaching. PIC uploads continue to occur weekly. Starting this year and going forward, if any files approach or exceed the 60-day submission threshold, the effective date will be revised as necessary, and any associated costs will be absorbed by BRHP to ensure that clients are held harmless. Name of Contact Person: FaShaunDa Walton, Housing Mobility Director, fwalton@brhp.org Anticipated completion date: December 31, 2026

View Audit 402021

Finding 1215405 (2025-003)

Material Weakness 2025

Association House of Chicago

IL

Questioned Costs Allowable Costs / Cost Principles Material Weakness

MATERIAL WEAKNESS Finding 2025-003 – Allocation and Documentation of Payroll Costs Recommendation: Management should develop a process whereby payroll costs allocated to federal grants; are supported by a system of internal controls which provides reasonable assurance that the charges are accurate, ...

MATERIAL WEAKNESS Finding 2025-003 – Allocation and Documentation of Payroll Costs Recommendation: Management should develop a process whereby payroll costs allocated to federal grants; are supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable and properly allocated, reasonably reflect the total activity for which the employee is compensated and support the distribution of the employee’s wages among specific activities or cost objectives if the employee woks on more than one federally funded program. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: As corrective action, management implemented a new system to track time and effort effective July 1, 2025, using the Forms Assembly platform for federally funded DHS programs. For other grants, the Agency has continued to maintain supporting time and effort documentation through Excel-based records. Management recognizes that the implementation of the Forms Assembly system has presented operational challenges, particularly due to the need to reconcile information separately with the payroll system. As a result, since October 2025, management has been evaluating and vetting alternative systems that can fully integrate time and effort reporting with payroll processing. Beginning in fiscal year 2027, the Agency plans to implement a new integrated software solution that will record employee time, grant allocations, and payroll information within a single system integrated directly with payroll processing. Management believes this integrated approach will strengthen internal controls, improve the accuracy and timeliness of reporting, reduce manual reconciliation processes, and enhance compliance with federal time and effort requirements. Name of contact person responsible for corrective action: Margarita Rosas, Chief Financial Officer Planned completion date for corrective action plan: June 30, 2026

View Audit 401983

Finding 1215356 (2025-007)

Material Weakness 2025

City of New Haven

CT

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

Suspension and Debarment Description of Finding 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, (Uniform Guidance) requires compliance with provisions of procurement, suspension, and debarment. During our audit, we noted that the Board ...

Suspension and Debarment Description of Finding 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, (Uniform Guidance) requires compliance with provisions of procurement, suspension, and debarment. During our audit, we noted that the Board of Education Finance Office / City Purchasing Department did not have documentation to support that it verified vendors selected for testing against the SAM to ensure that they were not suspended or debarred from federally funded purchases. Statement of Concurrence or Nonconcurrence Management agrees with the finding. Corrective Action The Board of Education Finance Office, in conjunction with the City Purchasing Department, will review and enhance their processes and controls over the verification that vendors are not suspended or debarred. Name of Contact Person Amilcar Hernandez, Board of Education Chief Financial Officer Projected Completion Date June 30, 2026

View Audit 401899

Finding 1215198 (2025-007)

Material Weakness 2025

City Of Wakefield

MI

Material Weakness Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303

The City acknowledges the finding. The City will continue developing and maintaining written policies and procedures appropriate to its federal award activity and the terms and conditions of applicable federal awards. Policies and procedures will address internal controls, reporting responsibilities...

The City acknowledges the finding. The City will continue developing and maintaining written policies and procedures appropriate to its federal award activity and the terms and conditions of applicable federal awards. Policies and procedures will address internal controls, reporting responsibilities, record retention, allowable costs, procurement standards, conflictof- interest requirements where applicable, and compliance monitoring procedures consistent with Uniform Guidance requirements.

View Audit 401866

Finding 1215158 (2025-004)

Material Weakness 2025

Grant Community Consolidated School District #110

IL

School Nutrition Programs Internal Control / Segregation of Duties Questioned Costs § 200.303

Finding No. 2025-004 Condition – Claims submitted for reimbursement did not reconcile with the District’s internally prepared monthly claim summary report. Plan – The District will ensure that meal counts are thoroughly reviewed prior to submission. Meal counts are entered into the computer by the F...

Finding No. 2025-004 Condition – Claims submitted for reimbursement did not reconcile with the District’s internally prepared monthly claim summary report. Plan – The District will ensure that meal counts are thoroughly reviewed prior to submission. Meal counts are entered into the computer by the FSMC, and has been a place where errors have occurred. The district secretary is responsible for entering the meal counts into the state system. She is verifying the counts from the FSMC, comparing to attendance and invoices, and ensuring correct data goes into IWAS. This was started last spring, when we became aware of FSMC inconsistencies. The current year, FY26, has been much more accurate. Anticipated Date of Completion: current – 9/1/2026 Name of Contact Person: Matt Stines, Superintendent

View Audit 401821

Finding 1215069 (2025-001)

Material Weakness 2025

Lee County, Florida

FL

Allowable Costs / Cost Principles Questioned Costs HUD Housing Programs § 200.302 § 200.303 § 200.403

Community Development Block Grants Cluster Entitlements/Special Purpose – Assistance Listing No. 14.218 Recommendation: It is recommended the County modify its procedure to include: • Improve reconciliation procedures to verify hours per pay period recorded in quarterly spreadsheet agrees to hours r...

Community Development Block Grants Cluster Entitlements/Special Purpose – Assistance Listing No. 14.218 Recommendation: It is recommended the County modify its procedure to include: • Improve reconciliation procedures to verify hours per pay period recorded in quarterly spreadsheet agrees to hours recorded in the KRONOS system. • Record grant wages using the pay rate at the beginning of the quarter if recorded on a quarterly basis or use pay rates for each pay period if recorded on a pay period basis. Explanation of disagreement with audit finding: Management concurs with the auditor’s recommendations. Action taken in response to finding: • Document the audit process in a formalized SOP and cross train all reviewers from SRGA Admin, Budget, and Fiscal. • Create a checklist to accompany each personnel draw to ensure that after rates are verified that SRGA Admin certify that no RPAs or pay adjustments were approved during the pay periods reported and if there were, a second pay rate is entered for that draw and hours are split according to accurate rates/dates. • Document the cure process in the SOP to ensure that any errors found after the fact will be corrected with HUD to remain compliant and to ensure that no funds drawn in error are retained. • Include a date verification process prior to submission of the draw to ensure that staff did not duplicate any dates. This verification will be an audit of the Time Tracking Review completed by Admin staff. Ongoing training and coaching will be administered should duplicate entries be found on final draw reports. • Audit of all personnel draws for both allocations of CDBG-DR grants will be completed using the new SOP and verification tools before the end of FY2026. Name of the contact person responsible for corrective action: Nicole Turner, Director Planned completion date for corrective action plan: The above action plan will be implemented immediately; an audit of all personnel draws will be conducted using new process and checklists by the end of FY2026.

View Audit 401782

Corrective Action Plans

Filters