Corrective Action Plans

Finding 1240968 (2025-017)

Material Weakness 2025

State of Illinois

IL

Cash Management Matching / Level of Effort / Earmarking § 200.303

Finding Number: 2025-017 Finding Name: Failure to Re-certify to the Accuracy of the Clearance Pattern Finding Condition(s): The Illinois Department of Commerce and Economics Opportunity (DCEO) did not properly review or re-certify the accuracy of the clearance pattern specified in the Treasury-State...

Finding Number: 2025-017 Finding Name: Failure to Re-certify to the Accuracy of the Clearance Pattern Finding Condition(s): The Illinois Department of Commerce and Economics Opportunity (DCEO) did not properly review or re-certify the accuracy of the clearance pattern specified in the Treasury-State Agreement related to cash draws for the Low Income Home Energy Assistance Program (LIHEAP). Additionally, the auditors noted that internal controls have not been established to ensure clearance patterns are calculated and recertified in accordance with Treasury regulations. Name of Contact Person(s): • Lisa Clement, Audit and Resolution Manager – Illinois Department of Commerce and Economic Opportunity • Jared Ebel, Chief Accountability Officer – Illinois Department of Commerce and Economic Opportunity • Phil Keshen, Deputy Director – Illinois Department of Commerce and Economic Opportunity, Office of Fiscal Management Corrective Action(s): The DCEO’s Office of Financial Management requested that the Governor’s Office of Management and Budget (GOMB) change the funding technique for the Low-Income Home Energy Assistance Program within the Treasury-State Agreement to Pre-Issuance. This change eliminates the need to re-certify to the accuracy of the clearance pattern. GOMB approved the change to the Treasury-State Agreement for Fiscal Year 2026. Proposed Completion Date: July 1, 2025 – Complete

View Audit 415211

Finding 1240958 (2025-013)

Material Weakness 2025

State of Illinois

IL

Special Tests & Provisions Subrecipient Monitoring Matching / Level of Effort / Earmarking § 200.303

Finding Number: 2025-013 Finding Name: Failure to Complete UI BAM Case File Reviews Within Required Timeframes Finding Condition(s): The Illinois Department of Employment Security (IDES) did not complete the Benefit Accuracy Measurement (BAM) case file reviews in accordance with United States Depart...

Finding Number: 2025-013 Finding Name: Failure to Complete UI BAM Case File Reviews Within Required Timeframes Finding Condition(s): The Illinois Department of Employment Security (IDES) did not complete the Benefit Accuracy Measurement (BAM) case file reviews in accordance with United States Department of Labor (USDOL) requirements for the Unemployment Insurance (UI) program. The auditors noted that the IDES did not achieve each of the required percentage of case reviews within the required timeframes. The auditors noted that the IDES has not established adequate controls to ensure BAM case file review procedures are completed within timeframes established by the USDOL. Name of Contact Person(s): Dureyl Tyson, Benefit Accuracy Measurement Unit Manager – Illinois Department of Employment Security Corrective Action(s): During the latter half of 2025, the IDES hired and completed the training of two additional investigators to complete the reviews timely. Proposed Completion Date: December 31, 2025 – Complete

View Audit 415211

Finding 1240956 (2025-012)

Material Weakness 2025

State of Illinois

IL

Subrecipient Monitoring Reporting Matching / Level of Effort / Earmarking § 200.303

Finding Number: 2025-012 Finding Name: Inadequate Process for Preparing ETA 2208A Special Report Finding Condition(s): The Illinois Department of Employment Security (IDES) does not have an adequate process in place to ensure the ETA 2208A special reports prepared for the Unemployment Insurance (UI)...

Finding Number: 2025-012 Finding Name: Inadequate Process for Preparing ETA 2208A Special Report Finding Condition(s): The Illinois Department of Employment Security (IDES) does not have an adequate process in place to ensure the ETA 2208A special reports prepared for the Unemployment Insurance (UI) program are complete and accurate. Name of Contact Person(s): Linette Hughes, Budget Director – Illinois Department of Employment Security Corrective Action(s): The IDES has reviewed and corrected the job aid for the ETA 2208A reporting. Additionally, the IDES has communicated the corrective actions to its staff. Proposed Completion Date: December 31, 2025 – Complete

View Audit 415211

Finding 1240954 (2025-011)

Material Weakness 2025

State of Illinois

IL

Subrecipient Monitoring Reporting Matching / Level of Effort / Earmarking § 200.303

Finding Number: 2025-011 Finding Name: Inadequate Process for Preparing ETA 9130 Financial Reports Finding Condition(s): The Illinois Department of Employment Security (IDES) does not have an adequate process in place to ensure that the ETA 9130 financial reports prepared for the Unemployment Insura...

Finding Number: 2025-011 Finding Name: Inadequate Process for Preparing ETA 9130 Financial Reports Finding Condition(s): The Illinois Department of Employment Security (IDES) does not have an adequate process in place to ensure that the ETA 9130 financial reports prepared for the Unemployment Insurance (UI) program are complete and accurate. Additionally, the auditors noted that the IDES does not perform analytical or other procedures over previously reported information or expectations relative to current program activities. Finally, supervisory review procedures are not designed to operate at a level of precision to identify errors of this nature. Name of Contact Person(s): Kelly McGrath, Manager of Accounting and Reporting – Illinois Department of Employment Security Corrective Action(s): The IDES created a new ETA 9130 report based on current accounting operations from its accounting system, the Enterprise Resource Planning (ERP) system. The new ETA 9130 reports were created in March 2026, with the first test run for the March 31, 2026, ETA 9130 reporting period. The IDES also ran the new ETA 9130 reports for the June 30, 2026, reporting period. While the new ETA 9130 reports are running properly, the new ETA 9130 reports will need to be reconfigured for the new payroll system. As the underlying data in the new ETA 9130 reports will change with the new payroll system, the IDES has not yet implemented analytical procedures. Finally, the IDES implement supervisory review procedures. The IDES’ accountants enter the ETA 9130 data into the Payment Management System (PMS). Next, the Grant Accounting Supervisor reviews the ETA 9130 reports against what is entered into the PMS. The Grant Accounting Supervisor investigates all issues with ETA 9130 reports with the Manager of Accounting and Reporting. After the Grant Accounting Supervisor’s review, either the Manager of Accounting and Reporting or the Manager of Accounting Services approves the ETA 9130 report in the PMS. The IDES considers this new ETA 9130 report a first draft as accounting operations will be changing with the conversion from its old payroll system to the eTime/CTAS systems. In addition, the IDES is converting from an indirect cost allocation plan to a negotiated indirect cost rate. These changes in operations could affect how and where the IDES acquires the data needed for the ETA 9130 reports. Some reconfiguration may be needed to finalize the new ETA 9130 report. The IDES went live with the new payroll system with the July 31, 2026, payroll. The IDES is working through issues with the new payroll data and the new database and is working to create reports to use to enter the payroll data into the ERP system. Additionally, due to the payroll conversion, which will affect how to prepare the ETA 9130 report, current policies and procedures will need to be rewritten when the conversion is complete. Proposed Completion Date: October 31, 2026

View Audit 415211

Finding 1240952 (2025-010)

Material Weakness 2025

State of Illinois

IL

Eligibility Matching / Level of Effort / Earmarking § 200.303

Finding Number: 2025-010 Finding Name: Unemployment Benefit Payments to Ineligible Claimants Finding Condition(s): The Illinois Department of Employment Security (IDES) failed to follow established policies when making eligibility determinations for claimants of the Unemployment Insurance (UI) progr...

Finding Number: 2025-010 Finding Name: Unemployment Benefit Payments to Ineligible Claimants Finding Condition(s): The Illinois Department of Employment Security (IDES) failed to follow established policies when making eligibility determinations for claimants of the Unemployment Insurance (UI) program. Additionally, the auditors noted that adequate internal controls have not been established to ensure necessary changes resulting from the conclusion of pandemic related provisions are made to UI eligibility procedures in a timely manner Name of Contact Person(s): Mireya Hurtado, Deputy Director – Illinois Department of Employment Security, Service Delivery Division Corrective Action(s): To correct the finding, the IDES completed the following: • Established regular health checks of the Illinois Benefit Information System (IBIS), • Resumed investigations of potential refusal of work issues and that all impact cross analysis was restored, • Created a report that will allow the IDES to identify potential staff errors, the staff member in question, and home office, and • Established training for IDES staff. Proposed Completion Date: March 31, 2025 - Complete

View Audit 415211

Finding 1240950 (2025-009)

Material Weakness 2025

State of Illinois

IL

Matching / Level of Effort / Earmarking Subrecipient Monitoring § 200.303

Finding Number: 2025-009 Finding Name: Failure to Follow Established Control Procedures for Approving Certified Payrolls for the Airport Improvement Program Finding Condition(s): The Illinois Department of Transportation (IDOT) did not document approval of certified payrolls in accordance with its e...

Finding Number: 2025-009 Finding Name: Failure to Follow Established Control Procedures for Approving Certified Payrolls for the Airport Improvement Program Finding Condition(s): The Illinois Department of Transportation (IDOT) did not document approval of certified payrolls in accordance with its established internal control procedures for the Airport Improvement Program (AIP) program. Name of Contact Person(s): Clayton Stambaugh, Deputy Director of Aeronautics - Illinois Department of Transportation Corrective Action(s): Applicable staff will be reminded of requirements to review certified payroll reports and sign off on them prior to submission for reimbursement. Proposed Completion Date: October 1, 2026 - Complete

View Audit 415211

Finding 1240937 (2025-004)

Material Weakness 2025

State of Illinois

IL

Cash Management Matching / Level of Effort / Earmarking § 200.303

Finding Number: 2025-004 Finding Name: Failure to Calculate Cash Requests in Accordance with the Treasury Regulations Finding Condition(s): The Illinois State Board of Education (ISBE) did not calculate cash requests for the Twenty-First Century Community Learning Centers (21st Century) and Student ...

Finding Number: 2025-004 Finding Name: Failure to Calculate Cash Requests in Accordance with the Treasury Regulations Finding Condition(s): The Illinois State Board of Education (ISBE) did not calculate cash requests for the Twenty-First Century Community Learning Centers (21st Century) and Student Support and Academic Enrichment (SSAE) programs in accordance with the requirements of 31 CFR part 205 (Treasury Regulations). Name of Contact Person(s): Regina Toland, Director of Fiscal Services – Illinois State Board of Education Corrective Action(s): ISBE's accounting system, MIDAS, automatically calculates the amounts to be requested from federal sources based on expenditures. The ISBE will request federal funds based on this calculation to be in compliance with the Cash Management Improvement Act and the Code of Federal Regulations. Proposed Completion Date: July 1, 2026 - Complete

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Finding 1240933 (2025-003)

Material Weakness 2025

State of Illinois

IL

Subrecipient Monitoring Matching / Level of Effort / Earmarking § 200.303 § 200.332 § 200.521

Finding Number: 2025-003 Finding Name: Inadequate Monitoring of Subrecipient Single Audit Reviews Finding Condition(s): The State of Illinois did not establish adequate controls to monitor the completion and documentation of the review of single audit reports for its subrecipients of the Special Sup...

Finding Number: 2025-003 Finding Name: Inadequate Monitoring of Subrecipient Single Audit Reviews Finding Condition(s): The State of Illinois did not establish adequate controls to monitor the completion and documentation of the review of single audit reports for its subrecipients of the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), Child and Adult Care Food Program (CACFP), WIOA Cluster (WIOA Cluster), Highway and Planning Construction (Highway Planning), Title I Grants to Local Education Agencies (Title I), Special Education Cluster (Special Education Cluster), Twenty-First Century Community Learning Centers (21st Century), Supporting Effective Instruction State Grants (SEISG), Student Support and Academic Enrichment Program (SSAE), Education Stabilization Funds (ESF), Aging Cluster (Aging), Epidemiology and Laboratory Capacity for Infectious Diseases (ELC), Temporary Assistance for Needy Families (TANF), Child Support Services (CSS), Low-Income Home Energy Assistance Program (LIHEAP), Child Care and Development Fund Cluster (CCDF Cluster), Social Services Block Grant (SSBG), Block Grants for Prevention and Treatment of Substance Abuse (SAPT), Disaster Grants – Public Assistance (Public Assistance), and Homeland Security Grant Program (Homeland Security) programs in the State's Grant Accountability and Transparency Act (GATA) Audit Report Review Management System (ARRMS). Name of Contact Person(s): Keyria Rodgers, Grant Accountability and Transparency Unit Director – Illinois Governor’s Office of Management and Budget Corrective Action(s): The Grant Accountability and Transparency Unit (GATU) within the Illinois Governor’s Office of Management and Budget (GOMB) has developed both reactive (reduce the backlog) and proactive (eliminate future backlogs) approaches to address this finding. These approaches strengthen internal controls, establish consistent monitoring of Management Decision Letter (MDL) completion, and reduce the likelihood that agencies continue the pattern of missing MDL completion deadlines. Reducing the Backlog – Reactive Approach Due to the significant backlog, the reactive monitoring process was implemented first, in June 2025, to identify agencies with outstanding MDLs. Prior to June 2025, GATU did not have consistent visibility into outstanding MDLs requiring upload to the ARRMS system, nor did it regularly report this information to agencies. Beginning in June 2025, GATU implemented a MDL Analysis, a monthly monitoring of MDLs in ARRMS, to provide clearer visibility into overdue items and areas requiring corrective action. After each monthly review, GATU’s Fiscal and Audit Manager distributes the MDL Analysis to Chief Accountability Officers (CAOs) and Subject Matter Experts (SMEs) during the monthly CAO and SME calls hosted by GATU. In addition, the Fiscal and Audit Manager provides live demonstrations and one on one technical assistance upon request to support agencies in understanding and completing their MDL requirements. (Proposed Completion Date for Backlog: June 30, 2027) Eliminating Future Backlogs – Proactive Approach GATU’s reactive efforts have significantly reduced the backlog of MDL completions in ARRMS, enabling GATU to establish a clear, proactive approach that minimizes the likelihood of repeated missed deadlines. Beginning in December 2026, GATU’s Fiscal and Audit Manager will move to conducting MDL Analyses weekly. Using the MDL Analyses, the Fiscal and Audit Manager will notify agencies of upcoming deadlines 90 days prior to the date MDLs must be entered into ARRMS. A second reminder will be sent 30 days prior to the deadline. If the Fiscal and Audit Manager does not observe meaningful progress toward MDL completion following these notifications, the matter will be escalated to the GATU Director for a touchpoint meeting with the agency’s CAO. If the agency remains delinquent after the reminders and GATU Director level intervention, the GATU Director will escalate the matter to the Senior Deputy Director of Accountability and Compliance for further action within 15 days of the agency’s review becoming overdue. This escalation will be sent via email and will document the agency’s status, prior reminders, and the need for corrective action. (Proposed Completion Date for Implementing Proactive Approach: December 31, 2026) Proposed Completion Date: June 30, 2027

View Audit 415211

Finding 1240759 (2025-001)

Material Weakness 2025

Housing Opportunities, Inc.

NC

Reporting Matching / Level of Effort / Earmarking

HOUSING OPPORTUNITIES, INC. P.O. Box 10248 Greensboro, North Carolina 27404 CORRECTIVE ACTION PLAN Single Audit Clearinghouse 1201 East 10th Street Jeffersonville, Indiana 47132 Housing Opportunities, Inc. (the "Organization"), respectfully submits the following Corrective Action Plan for the year e...

HOUSING OPPORTUNITIES, INC. P.O. Box 10248 Greensboro, North Carolina 27404 CORRECTIVE ACTION PLAN Single Audit Clearinghouse 1201 East 10th Street Jeffersonville, Indiana 47132 Housing Opportunities, Inc. (the "Organization"), respectfully submits the following Corrective Action Plan for the year ended December 31, 2025. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Greensboro, North Carolina 27410 Audit period: Year ended December 31, 2025 The finding from the December 31, 2025 Schedule of Findings and Questioned Costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. Findings and Questioned Costs: Finding 2025-001: Section III - Findings and questioned costs relating to the major programs which are required to be reported as defined by the Uniform Guidance [2 CFR 200.516(a)] Recommendation: The Organization should continuously monitor cash balances to ensure that funds are always covered by FDIC insurance limits, collateral agreements are obtained, or funds are invested in government securities. Management's Response: Management reviews the financial stability of the banking institutions that hold the Organizations' funds on an ongoing basis and will continue to do so. Management does not feel at this time that the funds are truly at risk based on current market conditions and the reviews they continually do on the financial stability of the banking institutions holding these funds. Management will transfer the funds at any point they believe the funds are truly at risk. If you have questions regarding this plan, please call Eliza Haynes at 336-544-2300. Sincerely yours, Eliza Haynes Partnership Property Management

View Audit 415160

Finding 1240757 (2025-003)

Material Weakness 2025

City of Warwick, Rhode Island

RI

Internal Control / Segregation of Duties Subrecipient Monitoring Allowable Costs / Cost Principles § 200.430

Warwick Public Schools has implemented several procedures to strengthen grant management, improve the accuracy and timeliness of required reporting, and ensure appropriate coordination between the Grants and Business Offices. 1. Grants Management Calendar: A shared Grants Management Calendar has bee...

Warwick Public Schools has implemented several procedures to strengthen grant management, improve the accuracy and timeliness of required reporting, and ensure appropriate coordination between the Grants and Business Offices. 1. Grants Management Calendar: A shared Grants Management Calendar has been created and is actively used by the Grants and Business Offices to monitor reporting deadlines and ensure required reports are completed and submitted on time. The calendar identifies the individual responsible for each reporting requirement and is managed by the Director of Federal Programs & Grants, Paul Heatherton. 2. Grant Tracker: A centralized Grant Tracker has been implemented to document key grant information, including the Grant Award Notification (GAN), approved budget, grant-funded positions, and grant end dates. This tracker is shared with the Grants and Business Offices and, when applicable, Human Resources. It supports coordination across departments, particularly for positions funded through grants with defined end dates, such as the Coronavirus State and Local Fiscal Recovery Funds. This process helps the district identify upcoming grant expirations and plan for the continuation or transition of funding for grant-funded positions. 3. Annual Grant Position and Funding Notifications: The Grants Office has established an annual process for providing Human Resources with a transaction notice identifying grant-funded positions and their associated grant fund numbers. This procedure strengthens communication regarding grant-funded staffing and helps ensure that positions are accurately associated with the appropriate funding sources. 4. Federal Grants Management Procedural Guide: Warwick Public Schools intends to develop a Warwick Public Schools Federal Grants Management – Procedural Guide by April 2027. This working guide will include both programmatic and financial procedures to promote consistent grant administration and ensure compliance with applicable federal, state, and grant-specific requirements. The guide will establish clear expectations for grant oversight, reporting deadlines, financial documentation, expenditure monitoring, and coordination among the Grants Office, Business Office, and other relevant departments. It will serve as a reference for staff responsible for administering and monitoring grant-funded programs and expenditures. The Grants Management Calendar, Grant Tracker, and annual grant position and funding notification procedures were implemented as of September 30, 2026. Completion of the Federal Grants Management Procedural Guide by April 2027 will serve as an additional step toward strengthening internal controls, standardizing grant administration, and supporting ongoing compliance.

View Audit 415155

Finding 1240732 (2025-006)

Material Weakness 2025

Rabun County Water and Sewer Authority

GA

Cash Management Matching / Level of Effort / Earmarking

Tlte Authority will review all invoices submitted to GEF A for loan requests and ensure each loan requests includes onlv expenses paid by the Authority.

View Audit 415106

Finding 1240716 (2025-007)

Material Weakness 2025

Nevadaworks

NV

Matching / Level of Effort / Earmarking § 200.303

Matching, Level of Effort, and Earmarking Management Response: Management acknowledges this finding which addresses that inaccurate fourth-quarter expenditure reporting affected management’s ability to demonstrate compliance with applicable WIOA earmarking requirements. However, there were no appare...

Matching, Level of Effort, and Earmarking Management Response: Management acknowledges this finding which addresses that inaccurate fourth-quarter expenditure reporting affected management’s ability to demonstrate compliance with applicable WIOA earmarking requirements. However, there were no apparent instances of non-compliance identified. Corrective Action: Nevadaworks will establish a quarterly WIOA earmarking compliance review for any applicable requirements. Review will take place as part, and during the preparation of the WIOA quarterly reports. Responsible Party: Grants/Compliance Manager and Finance Manager/Controller, with oversight by program leadership. Target Completion: The quarterly earmarking review process will be implemented immediately and maintained throughout each program year. Monitoring: Management will complete and retain a documented earmarking review for applicable requirements each quarter. Overall Corrective Action Monitoring: Nevadaworks will maintain a centralized Audit Corrective Action Log containing each ﬁnding, corrective action, responsible party, target date, status, and supporting evidence. Management will review the corrective action log at least quarterly. The Chief Executive Officer will report signiﬁcant implementation issues to the appropriate parties. The objective of these corrective actions is to ensure that deﬁciencies are addressed at the process level and that controls are sustainable, documented, independently reviewed, and capable of preventing or detecting errors and federal compliance issues on a regular and timely basis. Nevadaworks is committed to completing the corrective actions and strengthening its ﬁnancial management and federal grant compliance environment.

View Audit 415079

Finding 1240647 (2025-002)

Material Weakness 2025

Partnership Homes, Inc.

NC

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.512

Partnership Homes, Inc. Greensboro, North Carolina CORRECTIVE ACTION PLAN July 7, 2026 Federal Audit Clearinghouse 1201 East 10th Street Jeffersonville, Indiana 47132 Partnership Homes, Inc. respectfully submits the following Corrective Action Plan for the year ended December 31, 2025. Bernard Robin...

Partnership Homes, Inc. Greensboro, North Carolina CORRECTIVE ACTION PLAN July 7, 2026 Federal Audit Clearinghouse 1201 East 10th Street Jeffersonville, Indiana 47132 Partnership Homes, Inc. respectfully submits the following Corrective Action Plan for the year ended December 31, 2025. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Post Office Box 19608 Greensboro, North Carolina 27419-9608 Audit period: Year ended December 31, 2025 The findings from the December 31, 2025 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 Finding No. 2025-002: HOME Investment Partnerships Program , CFDA #14.239 Recommendation: We recommend management ensure that the data collection forms are submitted electronically to the FAC within the required due dates each fiscal year going forward. Management's Response: We agree with the finding and the recommendation described in the accompanying schedule of findings and questioned costs. Management will provide additional oversight to ensure the data collection forms are submitted electronically to the FAC each fiscal year going forward within required due dates. If you have questions regarding this plan, please call Mike Cooke at (336) 707-5289. Sincerely yours, Mike Cooke Executive Director Partnership Homes, Inc.

View Audit 415030

Finding 1240646 (2025-001)

Material Weakness 2025

Partnership Homes, Inc.

NC

Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Special Tests & Provisions

Partnership Homes, Inc. Greensboro, North Carolina CORRECTIVE ACTION PLAN July 7, 2026 Federal Audit Clearinghouse 1201 East 10th Street Jeffersonville, Indiana 47132 Partnership Homes, Inc. respectfully submits the following Corrective Action Plan for the year ended December 31, 2025. Bernard Robin...

Partnership Homes, Inc. Greensboro, North Carolina CORRECTIVE ACTION PLAN July 7, 2026 Federal Audit Clearinghouse 1201 East 10th Street Jeffersonville, Indiana 47132 Partnership Homes, Inc. respectfully submits the following Corrective Action Plan for the year ended December 31, 2025. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Post Office Box 19608 Greensboro, North Carolina 27419-9608 Audit period: Year ended December 31, 2025 The findings from the December 31, 2025 Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Findings - Financial Statement Audit Finding No. 2025-001: Significant Deficiency in Internal Control Over Financial Reporting Recommendation: We recommend that the owner and management agent strengthen controls over reserve account activity by implementing procedures to review all reserve withdrawal requests before disbursement, verify whether lender approval is required under the loan agreement, obtain and retain evidence of approval before funds are released, and perform periodic supervisory review of reserve activity for compliance with loan agreement restrictions. Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. Management indicated that the withdrawal occurred under the prior management agent and that corrective actions are being implemented. Management has replaced the management agent and will require all future reserve withdrawals in excess of $2,000 to be reviewed for lender approval requirements and supported by written approval before disbursement. If you have questions regarding this plan, please call Mike Cooke at (336) 707-5289. Sincerely yours, Mike Cooke Executive Director Partnership Homes, Inc.

View Audit 415030

Finding 1240643 (2025-004)

Material Weakness 2025

JOHNSON CREEK WATERSHED COUNCIL

OR

Cash Management Allowable Costs / Cost Principles Material Weakness § 200.302 § 200.303 § 200.305

2025-004 Habitat Conservation – Assistance Lising #11.463 - Material Weakness in Internal Control over Compliance – Cash Management Recommendation: We recommend the Organization implement formal internal controls over the cash management process, including documented supervisory review and approval ...

2025-004 Habitat Conservation – Assistance Lising #11.463 - Material Weakness in Internal Control over Compliance – Cash Management Recommendation: We recommend the Organization implement formal internal controls over the cash management process, including documented supervisory review and approval of all cash draw requests prior to submission. Cash draw requests should be prepared and supported using information maintained within the accounting system and reconciled to the general ledger to ensure that only allowable, properly recorded Federal expenditures are included in reimbursement requests. Additionally, management should develop and implement a written cash management policy that establishes procedures for preparing, reviewing, approving, reconciling, documenting, and retaining cash draw records in accordance with the Uniform Guidance. Explanation of disagreement with audit findings: there is no disagreement with the audit findings. Action taken in response to finding: JCWC is in the process of implementing updated financial policies and procedures to strengthen internal controls over cash management and Federal reimbursement requests. The new Fiscal Policy Manual establishes a specific process for preparing, verifying, reconciling, reviewing, approving, submitting, and retaining Federal reimbursement and cash draw requests. For example, Section 7.2.1, Reimbursement Request Process, requires: 1. Prepare and Verify The Finance & Grants Manager works with Program Staff and Jitasa to identify eligible expenditures and prepares the reimbursement request, ensuring costs are allowable, appropriately allocated, within the approved budget, and supported by documentation. The request shall be prepared using financial information maintained in QuickBooks. 2. Review and Reconcile The appropriate Director reviews the request and supporting documentation for accuracy, allowability, and budget compliance. Jitasa reconciles the requested amount to the applicable QuickBooks general ledger accounts and supporting documentation. Any discrepancy shall be resolved and documented before submission. 3. Approve and Submit The appropriate Director provides documented approval through an approved electronic signature platform. By approving the request, the Director confirms that the request has been reviewed for accuracy, allowable costs, appropriate grant allocation, and compliance with the applicable grant budget and funding requirements. Once approved, the Finance & Grants Manager submits the request to the funder or partner with all required supporting documentation. 4. Retain Records The reimbursement request, supporting documentation, electronic approval, and submitted request are retained in the designated grant records in accordance with Section 10 and applicable funder requirements. The policy therefore establishes a documented supervisory approval and reconciliation process before Federal reimbursement or cash draw requests are submitted. Action Plan: JCWC will finalize and present the Fiscal Policy Manual to the Board for formal adoption and will continue implementing the procedures in the interim. The Finance & Grants Manager will work with program staff and Jitasa to prepare and verify Federal reimbursement and cash draw requests. Requests will be reconciled to the QuickBooks general ledger and supporting documentation, with any discrepancies resolved and documented before submission. The appropriate Director will review and approve each Federal reimbursement or cash draw request prior to submission. JCWC will retain the request, supporting documentation, reconciliation, and approval in accordance with its records retention requirements and applicable Federal requirements. Following Board The appropriate Director will review and approve each Federal reimbursement or cash draw request prior to submission. JCWC will retain the request, supporting documentation, reconciliation, and approval in accordance with its records retention requirements and applicable Federal requirements. Following Board

View Audit 415026

Finding 1240641 (2025-002)

Material Weakness 2025

JOHNSON CREEK WATERSHED COUNCIL

OR

Allowable Costs / Cost Principles Reporting Material Weakness § 200.302 § 200.303

2025-002 Habitat Conservation – Assistance Lising #11.463 - Material Weakness in Internal Control over Compliance – Financial Management Recommendation: We recommend the Organization modify its financial management system to separately identify and track Federal award expenditures within the account...

2025-002 Habitat Conservation – Assistance Lising #11.463 - Material Weakness in Internal Control over Compliance – Financial Management Recommendation: We recommend the Organization modify its financial management system to separately identify and track Federal award expenditures within the accounting records. Management should discontinue reliance on external workbooks as the primary record of Federal expenditures and ensure the accounting system provides complete, accurate, and auditable records sufficient to support Federal financial reporting and compliance with Uniform Guidance requirements. Explanation of disagreement with audit findings: there is no disagreement with the audit findings. Action taken in response to finding: In September 2025, Johnson Creek Watershed Council implemented a new financial management process that separately identifies and tracks Federal award expenditures within its accounting records. JCWC transitioned its bookkeeping and accounting functions to Jitasa, an external accounting firm, with QuickBooks Online serving as the official accounting ledger. Under the new process, Federal grant expenditures are coded to the appropriate grant, project, and funding source within the accounting system. Grant expenditures are reconciled to the QuickBooks general ledger and supporting documentation as part of the grant reimbursement and financial reporting process. External grant tracking worksheets may still be used as supplemental management tools for monitoring project budgets and preparing reimbursement requests; however, they are no longer relied upon as the primary record of Federal expenditures. The new Fiscal Policy Manual formalizes these practices. Section 4.4.4, Cost Allocation, requires direct costs to be charged to the specific grant, contract, or project and shared costs to be allocated using documented methodologies. Section 10.1, Financial Records, establishes QuickBooks as the official accounting ledger, with Jitasa maintaining and reconciling the organization's financial records. Action Plan: JCWC will continue the financial management process implemented in September 2025 and incorporate the process into its formal fiscal policies and procedures. The Finance & Grants Manager will work with Jitasa to ensure Federal award expenditures continue to be appropriately coded and identifiable within QuickBooks. Federal expenditures will be reviewed and reconciled to the general ledger and supporting documentation as part of ongoing grant management and reporting. The Finance & Grants Manager and Executive Director will monitor the process to ensure that external tracking worksheets remain supplemental management tools and that the official accounting records in QuickBooks remain the primary source for Federal expenditure reporting. Name(s) of the contact people responsible for correction action: Jennifer Hamilton, Executive Director Sean Connolly, Finance & Grants Manager Jitasa Mallette Faherty, Board Treasurer Plan completion date for corrective action plan: September 5, 2025 for implementation of the new process; ongoing monitoring thereafter.

View Audit 415026

Finding 1240639 (2025-006)

Material Weakness 2025

Housing Hope and Subsidiaries

WA

Allowable Costs / Cost Principles Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

Brianna Mariani - BriannaMariani@housinghope.org Kathryn Opina - KathrynOpina@housinghope.org Explanation and specific reasons for disagreement with the audit finding or that corrective action is not required (if applicable): N/A Corrective action planned: A new allocation process was implemented in...

Brianna Mariani - BriannaMariani@housinghope.org Kathryn Opina - KathrynOpina@housinghope.org Explanation and specific reasons for disagreement with the audit finding or that corrective action is not required (if applicable): N/A Corrective action planned: A new allocation process was implemented in September 2025. Starting that month, each employee now completes their timecard in ADP, dividing hours worked by Revenue Source Code (grant or non-grant). Timecards are reviewed each pay period by the employee’s Supervisor for accuracy of time allocation and coding. A report is then generated from ADP to identify the grant allocations and prepare the journal entry. ADP does not allocate time spent on leave (vacation, sick, holiday, jury duty, other leave). Anything not automatically allocated on the ADP report is allocated manually based on the percentage of time the employee spent on that grant during the payroll period. For salaried employees, the Payroll Specialist manually prepares the allocation of wages and benefits to each grant based on the percentage of time the employee coded to that grant in their timecard (ADP does not automatically allocate salaried employees). Once allocations are complete, the Payroll Specialist prepares the journal entry and imports into the accounting system. The journal entry reviewer (the Controller or another team member) completes a detailed review of the manual portion of allocation of wages and benefits to grants. For the portion of wages and benefits that are automatically allocated to based on the approved timecards, ADP internal controls are relied upon. Anticipated completion date: The new process was implemented September 2025.

View Audit 415020

Finding 1240634 (2025-005)

Material Weakness 2025

Housing Hope and Subsidiaries

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Significant Deficiency § 200.303

Contact Person(s): Brianna Mariani - BriannaMariani@housinghope.org Kathryn Opina - KathrynOpina@housinghope.org Explanation and specific reasons for disagreement with the audit finding or that corrective action is not required (if applicable): N/A Corrective action planned: Beginning July 1, 2025, ...

Contact Person(s): Brianna Mariani - BriannaMariani@housinghope.org Kathryn Opina - KathrynOpina@housinghope.org Explanation and specific reasons for disagreement with the audit finding or that corrective action is not required (if applicable): N/A Corrective action planned: Beginning July 1, 2025, the Payroll Specialist began saving physically signed timesheets that document allocations to grants. Beginning August 1, 2025, allocations to grants are captured within the payroll system, ADP, along with the supervisor approval. The Payroll Specialist verifies each line on the timesheet is approved, which the system requires for the employee to receive payment. Anticipated completion date: Corrective action of signed allocation timesheets was implemented July 1, 2025. Corrective action of allocations to grants within ADP was implemented August 1, 2025.

View Audit 415020

Finding 1240543 (2025-001)

Material Weakness 2025

Swope Health Services and Subsidiaries

MO

Reporting Matching / Level of Effort / Earmarking § 200.510

Identifying Number: Finding 2025-001 – Schedule of Expenditures of Federal Awards (SEFA) Preparation Corrective Actions Taken or Planned: The completed SEFA and supporting reconciliation will receive a documented secondary management review and approval before submission to the external auditors. Th...

Identifying Number: Finding 2025-001 – Schedule of Expenditures of Federal Awards (SEFA) Preparation Corrective Actions Taken or Planned: The completed SEFA and supporting reconciliation will receive a documented secondary management review and approval before submission to the external auditors. The reviewer will verify the SEFA against the general ledger and grant records, including federal versus non-federal expenditures, ALNs, program clusters, award periods, and total expenditures reported. Evidence of review and approval will be retained with the SEFA workpapers. Person(s) Responsible: Essence Montgomery, CFO and Abdul Hadi, Director of Financial Accounting Anticipated Completion Date: February 1, 2027 Management Oversight & Next Steps: Management will communicate these control requirements to accounting personnel and responsible departments and incorporate them into current accounting policies and procedures. Documentation supporting the performance of each control will be retained as part of applicable workpapers and made available for management review and future audit testing.

View Audit 414983

Finding 1240453 (2025-015)

Material Weakness 2025

Guam Department of Education

GU

Matching / Level of Effort / Earmarking

Finding No.: 2025-015 Federal Agency: U.S. Department of Education AL Program: 84.425 Education Stabilization Fund 84.425X American Rescue Plan – Outlying Areas State Educational Agency (ARP-OA-SEA) Federal Award No.: S425X210003 Area: Matching, Level of Effort, Earmarking Questioned Costs: $0 Views...

Finding No.: 2025-015 Federal Agency: U.S. Department of Education AL Program: 84.425 Education Stabilization Fund 84.425X American Rescue Plan – Outlying Areas State Educational Agency (ARP-OA-SEA) Federal Award No.: S425X210003 Area: Matching, Level of Effort, Earmarking Questioned Costs: $0 Views of Auditee and Corrective Actions The Guam Department of Education (GDOE) disagrees with the finding and the associated projected deficiency. GDOE maintains its position that expenditures identified and reported toward the ARP-OA SEA 20% earmarking requirement were incurred in support of activities intended to address the academic impact of lost instructional time and the implementation of GDOE's approved educational interventions. The July 2023 U.S. Department of Education FAQ A-4.b clarifies that expenditures qualifying toward the ARP-OA SEA requirement are not limited to the direct cost of delivering an evidence-based intervention. Reasonable and necessary activities and costs associated with implementing an evidence-based strategy that advances the purpose of addressing the academic impact of lost instructional time may also be included. Each PO's supporting documentation in Munis includes a Determination of Need form that provides justification that may directly or indirectly connect the expenditure with activities that were deemed to address learning loss. To resolve this finding, GDOE will work with the granting agency to obtain a Program Determination letter outlining the specific deficiencies noted in the audit finding relative to the 20% requirement.

View Audit 414946

Finding 1240451 (2025-016)

Material Weakness 2025

Guam Department of Education

GU

Special Tests & Provisions Subrecipient Monitoring Matching / Level of Effort / Earmarking

Finding No.: 2025-016 Federal Agency: U.S. Department of Education AL Program: 84.425 Education Stabilization Fund 84.425A Education Stabilization Fund – State Educational Agency (Outlying Areas) Federal Award No.: S425A210003 Area: Special Tests and Provisions – Wage Rate Requirements Questioned Co...

Finding No.: 2025-016 Federal Agency: U.S. Department of Education AL Program: 84.425 Education Stabilization Fund 84.425A Education Stabilization Fund – State Educational Agency (Outlying Areas) Federal Award No.: S425A210003 Area: Special Tests and Provisions – Wage Rate Requirements Questioned Costs: $4,255,458 Views of Auditee and Corrective Actions GDOE concurs with the recommendation that controls over compliance with applicable Wage Rate Requirements should be strengthened. GDOE was not aware of the broader factors that would trigger the Davis-Bacon requirement. All the training and webinars GDOE program personnel attended iterated the requirement when federal funds are used for construction projects. However, GDOE does not concur with the determination that the entire $4,255,458 associated with the identified construction project constitutes questioned costs. GDOE acknowledges that the required certified payroll documentation was not maintained for the transactions identified in the finding. GDOE further acknowledges the need to strengthen its procurement and contract administration procedures to ensure that federally funded construction activities subject to applicable Wage Rate Requirements contain the required contractual provisions and that certified payroll documentation is obtained, reviewed, and retained. However, the absence of an executed construction contract and certified payroll documentation does not, by itself, establish that the entire amount paid to the vendor was unallowable or that workers performing the work were compensated below applicable wage requirements. Accordingly, GDOE believes that the questioned-cost determination should distinguish between the identified compliance and documentation deficiency and evidence demonstrating that the underlying expenditures were unallowable. GDOE will continue its efforts to obtain available certified payrolls, payroll records, and other supporting documentation from the contractor and will provide such documentation for consideration during audit resolution. Plan of action and completion date: GDOE will strengthen controls over federally funded construction projects subject to applicable Wage Rate Requirements. GDOE will: 1. Establish a documented determination of the applicability of Wage Rate Requirements for federally funded construction activities prior to solicitation, award, purchase order issuance, or commencement of work. 2. Ensure that solicitations, contracts, purchase orders, and other applicable procurement documents contain all required federal labor standards and Wage Rate Requirements provisions when applicable. 3. Require contractors and subcontractors subject to Wage Rate Requirements to submit required certified payroll documentation within the applicable timeframe during contract performance. 4. Designate responsible personnel to review certified payroll submissions for completeness and compliance and document evidence of the review. 5. Develop and implement a standardized compliance checklist for federally funded construction projects addressing Wage Rate Requirements, required contract provisions, certified payroll submissions, and related documentation. 6. Maintain certified payrolls, applicable wage determinations, contract provisions, compliance reviews, and other supporting documentation within the applicable procurement or contract file. 7. Provide guidance and training to Procurement, Federal Programs, project managers, contract administrators, and other personnel involved in federally funded construction activities regarding Wage Rate Requirements and documentation responsibilities. 8. Continue efforts to obtain the outstanding certified payrolls, payroll records, and other supporting documentation for the project identified in the finding and document the final resolution of the matter. Corrective actions will begin with immediate implementation for new federally funded construction activities subject to Wage Rate Requirements. Remediation of the transactions identified in the finding remains ongoing pending receipt and review of available contractor payroll documentation. Plan to monitor and responsible officials: Procurement Division, Federal Programs Division, applicable project/program managers and contract administrators, and Financial Affairs as applicable will be responsible for corrective action implementations and monitoring.

View Audit 414946

Finding 1240439 (2025-005)

Material Weakness 2025

Guam Department of Education

GU

Matching / Level of Effort / Earmarking

Finding No.: 2025-005 Federal Agency: U.S. Department of Education AL Program: 84.027 Special Education Cluster (IDEA) Area: Matching, Level of Effort, Earmarking Questioned Costs: $578,698 Views of Auditee and Corrective Actions GDOE agrees with the finding and recognizes the need to strengthen its...

Finding No.: 2025-005 Federal Agency: U.S. Department of Education AL Program: 84.027 Special Education Cluster (IDEA) Area: Matching, Level of Effort, Earmarking Questioned Costs: $578,698 Views of Auditee and Corrective Actions GDOE agrees with the finding and recognizes the need to strengthen its monitoring of Maintenance of State Financial Support (MFS) and the classification of IDEA administrative and State-level activities. GDOE will strengthen its MFS monitoring process by conducting quarterly reviews of State financial support for special education and related services throughout the fiscal year. The Special Education Division (SPED), SPED CMO, and GDOE Business Office will coordinate with applicable State agencies to obtain expenditure information, compare current-year support with the prior-year level, and identify potential shortfalls before year-end. The MFS calculation and supporting documentation will be reviewed and maintained annually to ensure timely identification and correction of potential deficiencies. GDOE will also strengthen its review and classification of IDEA expenditures to ensure State Administration, other State-level activities, and program costs are appropriately identified. The Special Education Division, SPED CMO, and Business Office will conduct quarterly reviews of administrative expenditures, including training, conferences, technical assistance, and travel, to ensure costs are properly classified and monitored against the applicable administrative cost limitation. Staff responsible for IDEA expenditures will receive guidance on the appropriate classification and documentation of these costs. Transactions identified as potentially misclassified will be reviewed and corrected, as appropriate. Plan of action and completion date: Initial corrective actions, including implementation of the monitoring procedures and staff guidance, will be completed within 90–120 days. Thereafter, MFS and IDEA administrative cost monitoring will be conducted and documented quarterly throughout each fiscal year. Plan to monitor and responsible officials: The Special Education Division (SPED), SPED CMO, and GDOE Business Office will be responsible for implementing and monitoring the corrective actions described above.

View Audit 414946

Finding 1240438 (2025-004)

Material Weakness 2025

Guam Department of Education

GU

Reporting Subrecipient Monitoring School Nutrition Programs

Finding No.: 2025-004 Federal Agency: U.S. Department of Agriculture AL Program: 10.555 Child Nutrition Cluster Federal Award No.: 7GU300GUB Area: Reporting Questioned Costs: $0 Views of Auditee and Corrective Actions GDOE acknowledges the finding. The corrective action addresses the variances in th...

Finding No.: 2025-004 Federal Agency: U.S. Department of Agriculture AL Program: 10.555 Child Nutrition Cluster Federal Award No.: 7GU300GUB Area: Reporting Questioned Costs: $0 Views of Auditee and Corrective Actions GDOE acknowledges the finding. The corrective action addresses the variances in the first and third quarter FY 2025 FNS-777 reports, related accounting records and reconciliations, and the subawards that were not reported as required by the Federal Funding Accountability and Transparency Act. Plan of action and completion date: The GDOE Business Office will reconcile applicable MUNIS expenditures against CNP claim and reimbursement records, draw requests, ASAP draw confirmations, bank receipts, MUNIS revenue entries, accounts receivable and other applicable receivable records, and documented adjustments. Differences among amounts requested, drawn, received, and recorded in MUNIS will be documented and resolved. Each quarterly FNS-777 will be supported by a line-by-line workpaper prepared by the GDOE Business Office and provided to GDOE FNSMD CNP, identifying the authoritative source for prior-period amounts, current period outlays, valid unliquidated obligations, federal funds authorized, adjustments, and the unobligated balance. An ASAP draw alone will not determine whether an amount is reported as an outlay or an unliquidated obligation. An earned reimbursement that has not yet been drawn may be recorded as a receivable for reconciliation purposes but will not automatically be reported as an unliquidated obligation. Separately, the GDOE Business Office will establish its controls under 2 CFR part 170 to identify and timely report each CNP subaward of $30,000 or more in the applicable federal system (FSRS). In coordination with GDOE FNSMD CNP, the GDOE Business Office review the FY 2025 subawards, submit any permitted late or corrective reports, and retain evidence of submission or final disposition. Plan to monitor and responsible officials: GDOE FNSMD CNP will conduct monthly follow-ups with the GDOE Business Office to monitor progress and ensure that activities remain on track for completion within the established timelines. Reconciliations will be performed quarterly to ensure that all financial transactions for the quarter are accurately recorded, supported, and ready for required reporting. The GDOE FNSMD CNP Administrator, Anthony S. Monforte and CNP Program Coordinator, Franklin J. Cruz will oversee the reconciliation and reporting controls. The Controller or designated GDOE Business Office official will be responsible for ASAP draws, MUNIS records, cash receipts, receivables, draw confirmations, federal subaward reporting, and supervisory review. The corrective actions will be implemented by October 1, 2026, and first applied to the FY 2027 first quarter reporting cycle. For each quarterly filing, GDOE FNSMD CNP will retain the completed reconciliation, preparer and reviewer sign-offs, and evidence of supervisory review, including supporting documentation provided by the GDOE Business Office, as applicable. The responsible officials will also document an annual review of the control process.

View Audit 414946

Finding 1240424 (2025-001)

Material Weakness 2025

Allen County

OH

Subrecipient Monitoring Allowable Costs / Cost Principles Period of Performance § 200.302 § 200.329

The SLFRF Project and Expenditure Report periods have been filed and no further reporting is required from these specific federal grant rewards. Future grants requiring reporting will be thoroughly reviewed for reporting specifications. Although no funds were misspent or inappropriately used, the Co...

The SLFRF Project and Expenditure Report periods have been filed and no further reporting is required from these specific federal grant rewards. Future grants requiring reporting will be thoroughly reviewed for reporting specifications. Although no funds were misspent or inappropriately used, the County understands the need for correct timing when reporting the grant funds held, encumbered, and expended. The County has since created a grant acceptance template, required to be used by all departments, which will be used to identify who is responsible for future grant reporting requirements. The County will work to ensure all affected departments are aware of specific reporting requirements and that those requirements are followed.

View Audit 414927

Finding 1240336 (2025-003)

Material Weakness 2025

Hamilton County General Health District

OH

Allowable Costs / Cost Principles Subrecipient Monitoring Matching / Level of Effort / Earmarking § 200.405

All RMS’s will be accepted by RMS Coordinators within 72 hours of the observation moment. RMS coordinators will regularly complete training with RMS section chiefs, supervisors, and participants on the importance of timely completion of RMS observations. RMS coordinators will provide RMS tips and hi...

All RMS’s will be accepted by RMS Coordinators within 72 hours of the observation moment. RMS coordinators will regularly complete training with RMS section chiefs, supervisors, and participants on the importance of timely completion of RMS observations. RMS coordinators will provide RMS tips and hints to participants and supervisors regarding the importance of timeliness of RMS. RMS “Passport” training will be conducted with Top Management in March of 2027. A new RMS Dashboard was created to advise Program leadership of RMS data and participant trends. RMS Supervisor validation data will be reviewed and shared with HCJFS leadership on a quarterly basis. The issues noted in RMS Audit will be shared with the RMS stakeholders. New Fiscal Analyst with be trained as RMS Backups to help ensure timeliness. The 8-minute RMS training video offered on the Beacon and an RMS “one pager” refresher was shared with RMS participants, supervisors, section chiefs on 09/08/2026. Guidance was provided to review both materials by 09/31/2026. HCJFS will implement this on a yearly basis moving forward. The RMS Supervisor and RMS Coordinators will have a better understanding to accept RMS’s timely, no matter who initially started the RMS correction conversation with the participant. The RMS Supervisor will conduct monthly spot checks of each cost pool to ensure timely completion of RMS observations.

View Audit 414858

Corrective Action Plans

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