Corrective Action Plans

Finding 1200716 (2025-010)

Material Weakness 2025

LA

Dear Mr. Waguespack, Capital Area Human Services District (CAHSD) concurs with the finding regarding inadequate controls and noncompliance with earmarking requirements under the Substance Use Prevention, Treatment, and Recovery Services Block Grant (SUBG) program. Management acknowledges that existi...

Dear Mr. Waguespack, Capital Area Human Services District (CAHSD) concurs with the finding regarding inadequate controls and noncompliance with earmarking requirements under the Substance Use Prevention, Treatment, and Recovery Services Block Grant (SUBG) program. Management acknowledges that existing controls were not sufficient to ensure compliance with the requirement to expend at least 20 % of SUBG funds on primary prevention programs. Although 20 % of the funds were allocated at the beginning of the fiscal year, some contracts were not fully utilized. In addition, controls were not sufficient to ensure that expenditures were consistently coded to the correct statistical internal order numbers within the LaGov accounting system. As a result, only 16.75 % of SUBG funds were expended on primary prevention activities. CAHSD recognizes the importance of strengthening its monitoring and review processes to ensure full compliance with earmarking requirements. As a corrective action plan, CAHSD Fiscal Department will conduct a monthly review of all SUBG related expenditures to verify that transactions are coded to the appropriate LaGov statistical internal order numbers. CAHSD Fiscal Department will also conduct quarterly internal reviews to compare actual expenditures to earmarking requirements. Any variances identified will be addressed promptly by working closely with the program manager to identify underutilized contracts so that funding can be reallocated in accordance with the approved Intended Use Plan. A review of expenditures and coding will be completed by April 15, 2026, to review the current percentage of funding used and to ensure proper statistical internal order numbers are used. CAHSD is committed to strengthening its internal control environment and ensuring full compliance with all federal grant requirements moving forward. The CAHSD Accountant Administrator, Linda Roquemore, under the direction of Deputy Director Shaketha Carter, will be responsible for implementing this corrective action plan and ensuring ongoing compliance with the requirement to expend at least 20% of SUBG funds on primary prevention programs, as well as ensuring the proper use of statistical internal order numbers within the LaGov accounting system.

View Audit 395718

Finding 1200715 (2025-009)

Material Weakness 2025

State of Louisiana

LA

Questioned Costs Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking

Dear Mr. Waguespack, Capital Area Human Services District (CAHSD) concurs in part with the finding regarding inadequate controls over and noncompliance with Activities Allowed and Unallowed Requirements under the Substance Use Prevention, Treatment, and Recovery Services Block Grant (SUBG) program. ...

Dear Mr. Waguespack, Capital Area Human Services District (CAHSD) concurs in part with the finding regarding inadequate controls over and noncompliance with Activities Allowed and Unallowed Requirements under the Substance Use Prevention, Treatment, and Recovery Services Block Grant (SUBG) program. CAHSD has adequate controls in place to review employees’ job functions to ensure compliance with the purpose of the SUBG program and allowability under grant requirements An employee was promoted into a position that had previously been funded by the SUBG program; however, the payroll coding was not updated to reflect the correct funding source. Although updated coding information was provided, the payroll system was not revised accordingly. Upon review of SUBG program expenditures, it was determined that the employee’s funding source had not been properly updated within the payroll system. A payroll correction was subsequently processed and completed on November 17, 2025, to ensure the funding source was accurately reflected. CAHSD is committed to strengthening its internal control environment and ensuring full compliance with all federal grant requirements. As a corrective action plan, CAHSD will implement periodic internal reviews of grant expenditures to ensure continued compliance. A review of expenditures and coding will be completed by April 15, 2026. Any discrepancies identified will be promptly corrected and documented. The CAHSD Accountant Administrator, Linda Roquemore, under the direction of Deputy Director, Ms. Shaketha Carter will be responsible for ensuring implementation of this corrective action plan to ensure utilization of the correct statistical internal order numbers within the LaGov accounting system.

View Audit 395718

Finding 1200689 (2025-007)

Material Weakness 2025

State of Louisiana

LA

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

Audit Period: Year End June 30, 2024 The Road Home Corporation d/b/a Louisiana Land Trust (LLT) respectively submits the following corrective action plan for the year ended June 30, 2024. Condition: Louisiana Land Trust (LLT) does not have adequate controls in place to ensure that LLT credit card tr...

Audit Period: Year End June 30, 2024 The Road Home Corporation d/b/a Louisiana Land Trust (LLT) respectively submits the following corrective action plan for the year ended June 30, 2024. Condition: Louisiana Land Trust (LLT) does not have adequate controls in place to ensure that LLT credit card transactions and bank accounts are properly monitored and comply with its own policies and federal program regulations, increasing the risk of theft and fraud. Actions to be taken – 1. Management concurs and has taken action to make certain that all credit card transactions/ statements as well as all bank accounts are monitored on a regular basis to ensure that each account reconciles properly. 2. Management has changed its internal procedures and reassigned responsibilities to staff to help ensure proper checks and balance take place on a regular basis. 3. Management has worked with our new outside CPA firm to integrate all accounts into our bookkeeping system to allow for automatic transaction reconciliations. If there are any questions regarding the actions taken, please feel free to reach out and let me know.

View Audit 395718

Finding 1200667 (2025-010)

Material Weakness 2025

Cabell Huntington Coalition for the Homeless, Inc.

WV

Matching / Level of Effort / Earmarking

Matching, Level of Effort, Earmarking Management agrees with the finding. Going forward, matching documentation will be collected at the time of billing, either monthly or quarterly. We are also strengthening communication with partner agencies that provide match contributions. Additionally, our new...

Matching, Level of Effort, Earmarking Management agrees with the finding. Going forward, matching documentation will be collected at the time of billing, either monthly or quarterly. We are also strengthening communication with partner agencies that provide match contributions. Additionally, our new assistant director has implemented a process to track in-kind donations as supplemental match sources.

View Audit 395703

Finding 1200660 (2025-002)

Material Weakness 2025

Payne Theological Seminary

OH

Questioned Costs Student Financial Aid Significant Deficiency

Student Financial Aid Cluster – CFDA No. 84.268 Recommendation: We recommend that the Seminary review the updated GLBA requirements and ensure their WISP includes all required elements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in r...

Student Financial Aid Cluster – CFDA No. 84.268 Recommendation: We recommend that the Seminary review the updated GLBA requirements and ensure their WISP includes all required elements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Seminary will continue to review and update our current WISP to comply with all requirements and updated standards. Name(s) of the contact person(s) responsible for corrective action: Raymond Ingram Planned completion date for corrective action plan: June 2026

View Audit 395694

Finding 1200659 (2025-001)

Material Weakness 2025

Payne Theological Seminary

OH

Questioned Costs Student Financial Aid Reporting

Student Financial Aid Cluster – CFDA No. 84.268 Recommendation: We recommend the Seminary evaluate its procedures and policies around reporting Unsubsidized loan disbursements to COD to ensure that student information is reported accurately and timely. Explanation of disagreement with audit finding:...

Student Financial Aid Cluster – CFDA No. 84.268 Recommendation: We recommend the Seminary evaluate its procedures and policies around reporting Unsubsidized loan disbursements to COD to ensure that student information is reported accurately and timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Business Office will post the awarded funds to the accounts in SONIS on the date designated on the disbursement roster. Name(s) of the contact person(s) responsible for corrective action: Razieh Adinehzadeh Planned completion date for corrective action plan: March 2026

View Audit 395694

Finding 1200540 (2025-036)

Material Weakness 2025

State of Washington C/o Office of Financial Management

WA

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

Finding Number: 2025-036 Finding: The Department of Children, Youth, and Families did not have adequate internal controls over and did not comply with health and safety requirements for the Child Care and Development Fund program. Program: 93.575 – Child Care and Development Block Grant 93.575 – COV...

Finding Number: 2025-036 Finding: The Department of Children, Youth, and Families did not have adequate internal controls over and did not comply with health and safety requirements for the Child Care and Development Fund program. Program: 93.575 – Child Care and Development Block Grant 93.575 – COVID-19 Child Care and Development Block Grant 93.596 – Child Care Mandatory and Matching Funds of the Child Care and Development Fund Compliance Requirement: Special Tests and Provisions – Health and Safety Requirements Questioned Costs: $0 Status: Corrective action in progress Corrective Action: The Department is strongly committed to ensuring the health, safety, and well-being of all children in care. During state fiscal year 2025, the Department: • Implemented improvements to the child care portal system (WA Compass) to enhance operational efficiency and to maintain accurate information on licensed child care and license-exempt staff and providers. • Established a new pre-licensing team to create an efficient and streamlined pathway for the initial licensure process, allowing licensors to remain focused on completing all required annual inspections. • Increased recruitment of licensing staff throughout the state. • Conducted internal reviews and research of the annual inspection checklists and recheck follow-up timelines to identify future adjustments to the inspection and recheck process as needed. • Established a plan to provide staff an annual informational audit presentation to promote understanding and collaboration on compliance issues. • Implemented data-driven decisions to assist providers and their staff to meet health and safety requirements. • Initiated the collaborative compliance initiative to prioritize compliance with all health and safety requirements which includes promoting collaboration, encouraging innovation, and focusing more on human-centered technical assistance. The Department will: • Work on updating policies and procedures to streamline and simplify recheck timelines and processes for items of noncompliance, including improvements in WA Compass. • Review the monitoring visit procedures to assess what additional steps could be added for management to improve oversight of rechecks. • Explore ways to demonstrate and adequately document the routine monitoring of licensed and license-exempt providers’ health and safety requirements to support compliance with quality assurance. • Provide training to field staff by the Quality Assurance and Continuous Quality Improvement team on the audit process and audit findings issued, and to gather input from field staff on any gaps or potential barriers to the recheck process. • Work with the Information Technology team to develop a report that will capture the task lists on the dashboard to include historical data and to improve documentation of monitoring compliance with license-exempt providers. Prior Findings: The conditions noted in this finding were previously reported in findings 2024-060, 2023-064, 2022-045, 2021-039, 2020-042, 2019-039, 2018-035, 2017-025, 2016-022, and 2015-024. Completion Date: Estimated June 2026 Agency Contact: Stefanie Niemela Audit Liaison (360) 725-4402 stefanie.niemela@dcyf.wa.gov

View Audit 395688

Finding 1200539 (2025-035)

Material Weakness 2025

State of Washington C/o Office of Financial Management

WA

Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles Period of Performance

Finding Number: 2025-035 Finding: The Department of Children, Youth, and Families improperly charged $543,205 to the Child Care Development Fund program. Program: 93.575 – Child Care and Development Block Grant 93.575 – COVID-19 Child Care and Development Block Grant 93.596 – Child Care Mandatory an...

Finding Number: 2025-035 Finding: The Department of Children, Youth, and Families improperly charged $543,205 to the Child Care Development Fund program. Program: 93.575 – Child Care and Development Block Grant 93.575 – COVID-19 Child Care and Development Block Grant 93.596 – Child Care Mandatory and Matching Funds of the Child Care and Development Fund Compliance Requirement: Period of Performance Questioned Costs: $543,205 Status: Corrective action not taken Corrective Action: The Department does not agree with the State Auditor’s Office (SAO) finding that $543,205 in expenditures were improperly charged to the Child Care and Development Fund (CCDF) grants during fiscal year 2025. The Department utilizes grant-level management for all federal funds and makes grant adjustments between allowable grant sources to properly spend grant dollars within the allowable period of performance. The questioned costs reported by the auditors were proper charges and met period of performance requirements, as follows: • $169,052 were expenditures charged to the CCDF grant prior to the grant start date but were later corrected in state fiscal year 2026. The Department provided documentation showing the adjustment, but it was not considered by SAO because the correction occurred outside the audit period. • $6,152 were questioned costs for the federal fiscal year 2024 CCDF grant which were applied as offset to recoveries in the correct period. All funds were appropriately documented and returned to the federal grantor as evidenced in the quarterly claims. Expenditures were obligated and expended within the allowable grant period. • $368,001 were initial expenditures recorded in the proper liquidation period that were charged to the CCDF Discretionary grant. The Department then processed an accounting adjustment in September 2024 to leverage the available grants’ funds per our grant-level management practice. Although the adjustment was processed in calendar month October 2024, it was recorded in the proper fiscal month in accordance with state financial reporting standards. When the Department of Health and Human Services (HHS) issues a management decision letter for the fiscal year 2025 finding, the Department will work with HHS and follow the audit resolution process. Prior Findings: The conditions noted in this finding were previously reported in findings 2024-058, 2023-061, 2022-043, 2021-037, and 2020-041. Completion Date: Not applicable Agency Contact: Stefanie Niemela External Audit Liaison (360) 725-4402 stefanie.niemela@dcyf.wa.gov

View Audit 395688

Finding 1200538 (2025-034)

Material Weakness 2025

State of Washington C/o Office of Financial Management

WA

Allowable Costs / Cost Principles Questioned Costs Subrecipient Monitoring

Finding Number: 2025-034 Finding: The Department of Children, Youth, and Families improperly charged $9,980 to the Child Care and Development Fund. Program: 93.575 – Child Care and Development Block Grant 93.575 – COVID-19 Child Care and Development Block Grant 93.596 – Child Care Mandatory and Matc...

Finding Number: 2025-034 Finding: The Department of Children, Youth, and Families improperly charged $9,980 to the Child Care and Development Fund. Program: 93.575 – Child Care and Development Block Grant 93.575 – COVID-19 Child Care and Development Block Grant 93.596 – Child Care Mandatory and Matching Funds of the Child Care and Development Fund Compliance Requirement: Eligibility Questioned Costs: $9,980 Status: Corrective action complete Corrective Action: The Department concurs that federal funds were incorrectly used for one client who should have been paid with state funds. As stated in the finding, all clients sampled for audit testing met the eligibility requirements for the Working Connections Child Care program, meaning they were deemed eligible for subsidy payment. However, one client that was determined to be eligible for state funding was paid with federal funds. This was the result of a system coding error in the Payment Allocation Model (PAM) process that led to the wrong source of funds being used for the client. In November 2025, the Department corrected the PAM coding to prevent further occurrences of this specific error. In February 2026, the Department: • Processed an accounting adjustment returning the federal funds that were paid by error to the Child Care and Development Fund grant. • Implemented a monthly quality assurance review process in collaboration with the Department of Social and Health Services where a sample of PAM allocations will be reviewed for accuracy. Prior Findings: None Completion Date: February 2026 Agency Contact: Stefanie Niemela External Audit Liaison (360) 725-4402 stefanie.niemela@dcyf.wa.gov

View Audit 395688

Finding 1200537 (2025-033)

Material Weakness 2025

State of Washington C/o Office of Financial Management

WA

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

Finding Number: 2025-033 Finding: The Department of Children, Youth, and Families did not have adequate internal controls over and did not comply with requirements to ensure payments to child care providers for the Child Care and Development Fund program were allowable and properly supported. Progra...

Finding Number: 2025-033 Finding: The Department of Children, Youth, and Families did not have adequate internal controls over and did not comply with requirements to ensure payments to child care providers for the Child Care and Development Fund program were allowable and properly supported. Program: 93.575 – Child Care and Development Block Grant 93.575 – COVID-19 Child Care and Development Block Grant 93.596 – Child Care Mandatory and Matching Funds of the Child Care and Development Fund Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Questioned Costs: $3,827 Status: Corrective action in progress Corrective Action: The Department agrees with the 11 audit exceptions identified by the State Auditor’s Office resulting from testing of attendance records and documentation from providers. In February 2026, the Department wrote overpayments for the exceptions identified and submitted them for recovery to the Department of Social and Health Services, Office of Financial Recovery. The Department will: • Develop a decision package to request funding for options to increase internal controls for provider payments. • Update the Child Care Subsidy Program Integrity Plan and the quality assurance audit procedures to align with current practices. When the Department of Health and Human Services (HHS) issues a management decision letter for the fiscal year 2025 finding, the Department will work with HHS and follow the audit resolution process. Prior Findings: The conditions noted in this finding were previously reported in findings 2024-056, 2023-058, 2022-041, 2021-033, 2020-038, 2019-035, 2018-034, 2017-024, 2016-021, 2015-023, 2014-023, 2013-016, 12-28, 11-23, 10-31, 9-12, and 8-13. Completion Date: Estimated October 2026 Agency Contact: Stefanie Niemela External Audit Liaison (360) 725-4402 stefanie.niemela@dcyf.wa.gov

View Audit 395688

Finding 1200133 (2025-010)

Material Weakness 2025

State of Washington C/o Office of Financial Management

WA

Allowable Costs / Cost Principles Questioned Costs Subrecipient Monitoring

Finding Number: 2025-010 Finding: The University of Washington did not have adequate internal controls over and did not comply with federal requirements to ensure salaries and wages charged to federal awards for the Research and Development programs were allowable and adequately supported. Program: ...

Finding Number: 2025-010 Finding: The University of Washington did not have adequate internal controls over and did not comply with federal requirements to ensure salaries and wages charged to federal awards for the Research and Development programs were allowable and adequately supported. Program: Research and Development Cluster Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Questioned Costs: $17,191 Status: Corrective action in progress Corrective Action: As of February 2026, the payroll exceptions identified by the auditors were reviewed by the applicable principal investigator and effort certification statements were completed. To address the audit recommendations, the University will strengthen internal controls and take the following corrective actions: • Expand the escalation process for past-due certifications to involve the University’s senior level leadership. • Implement enforcement procedures in instances of non-compliance such as limiting access to funding or restricting proposal submission. • Develop additional training on reporting and effort certification tools, and implement a process for the central office to establish and track retraining requirements. • Improve automated system notifications for effort coordinators and certifiers. The University will notify federal grantor(s) for each exception to provide an update on the resolution of the exception and the status of the corrective action plan. Prior Findings: None Completion Date: Estimated June 2026 Agency Contact: Erick Winger Controller (206) 543-5322 erickw@uw.edu

View Audit 395688

Finding 1191994 (2025-052)

Material Weakness 2025

State of Washington C/o Office of Financial Management

WA

Subrecipient Monitoring Reporting Matching / Level of Effort / Earmarking

Finding Number: 2025-052 Finding: The Military Department did not have adequate internal controls over and did not comply with requirements to ensure it filed reports required by the Federal Funding Accountability and Transparency Act for the Fire Management Assistance Grant program. Program: 97.046...

Finding Number: 2025-052 Finding: The Military Department did not have adequate internal controls over and did not comply with requirements to ensure it filed reports required by the Federal Funding Accountability and Transparency Act for the Fire Management Assistance Grant program. Program: 97.046 – Fire Management Assistance Grant Compliance Requirement: Reporting Questioned Costs: $0 Status: Corrective action in progress Corrective Action: During the audit period, the Department experienced changes in data collection and reporting processes, increased workload demands, decentralization of staff, and employee turnover. As a result, data entry errors in the Federal Funding Accountability and Transparency Act (FFATA) reporting were more prevalent. The Department is implementing the following corrective actions: • Review and reinforce internal written procedures with grant management staff and leadership to ensure clarity of roles and reporting requirements. • Update the internal FFATA procedures to ensure all sub-awards and amendments are properly identified and reported. • Implement a supervisory review process requiring program staff to validate the accuracy and completeness of FFATA reports prior to submission deadlines. The Department is committed to strengthening internal controls and ensuring full compliance with FFATA reporting requirements. Management will continue to monitor reporting processes to ensure future submissions are accurate, complete, and timely. Prior Findings: None Completion Date: Estimated June 2026 Agency Contact: Melanie Rogers Deputy Finance Director (253) 512-7365 melanie.rogers@mil.wa.gov

View Audit 395688

Finding 1191973 (2025-038)

Material Weakness 2025

State of Washington C/o Office of Financial Management

WA

Allowable Costs / Cost Principles Questioned Costs Subrecipient Monitoring

Finding Number: 2025-038 Finding: The Department of Children, Youth, and Families did not have adequate internal controls to ensure payments to providers were allowable and properly supported for the Social Services Block grant. Program: 93.667 – Social Services Block Grant Compliance Requirement: A...

Finding Number: 2025-038 Finding: The Department of Children, Youth, and Families did not have adequate internal controls to ensure payments to providers were allowable and properly supported for the Social Services Block grant. Program: 93.667 – Social Services Block Grant Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Period of Performance Questioned Costs: $1,872,842 Status: Corrective action complete Corrective Action: The Department does not agree that expenditures were improperly charged to the Social Services Block Grant (SSBG) program during fiscal year 2025. Since November 2024, the Department has limited journal voucher (JV) activities and manually processed these transfer JVs at the transaction-level by grant funding sources. This action was taken in response to prior year’s audit concern that the SSBG program was not auditable without transaction-level data. The amount of questioned costs reported on this audit finding were based on the following JVs that were processed by the Department during the fiscal year: • $1,419,561 were grant level adjustments made for allowable activities per the SSBG expenditure plan. • $505,707 was a portion of an accrual JV that the Department processed during the 2025 state fiscal year close and represented an estimate of the amount the Department may spend within the allowable timeframe, not the actual amount charged to the grant. Accruals are estimated outstanding costs that are included as part of the state’s year end closing process. When the Department of Health and Human Services (HHS) issues a management decision letter for the fiscal year 2025 finding, the Department will work with HHS and follow the audit resolution process. Prior Findings: The conditions noted in this finding were previously reported in findings 2024-072 and 2023-070. Completion Date: February 2026 Agency Contact: Stefanie Niemela External Audit Liaison (360) 725-4402 stefanie.niemela@dcyf.wa.gov

View Audit 395688

Finding 1191971 (2025-037)

Material Weakness 2025

State of Washington C/o Office of Financial Management

WA

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

Finding Number: 2025-037 Finding: The Department of Children, Youth, and Families did not have adequate internal controls over and did not comply with requirements to ensure Foster Care Maintenance payment rates were properly calculated. Program: 93.658 – Foster Care Title IV-E Compliance Requiremen...

Finding Number: 2025-037 Finding: The Department of Children, Youth, and Families did not have adequate internal controls over and did not comply with requirements to ensure Foster Care Maintenance payment rates were properly calculated. Program: 93.658 – Foster Care Title IV-E Compliance Requirement: Special Tests and Provisions – Payment Rate Setting and Application Questioned Costs: $0 Status: Corrective action in progress Corrective Action: The Department concurs that policies and procedures related to rate setting for Foster Care maintenance payments are not currently established and is committed to strengthening internal controls and complying with federal requirements. In February 2025, the Department met with the State Auditor’s Office to gather an understanding of concerns and discuss how reasonable and allowable rates could be documented to ensure federal compliance. In July 2025, the Department began drafting the written policies and procedures for setting payment rates to ensure maintenance payment rates only include allowable costs. The Department will continue to follow internal processes to complete the payment and rate setting policies and procedures. Prior Findings: The conditions noted in this finding were previously reported in finding 2024-071. Completion Date: Estimated July 2026 Agency Contact: Stefanie Niemela Audit Liaison (360) 725-4402 stefanie.niemela@dcyf.wa.gov

View Audit 395688

Finding 1191822 (2025-004)

Material Weakness 2025

Lincoln University

MO

Questioned Costs Student Financial Aid Matching / Level of Effort / Earmarking

The University concurs with the finding that the University does not have a written information security program that addresses all required elements of the Gramm-Leach-Bliley Act . While the University processes defined to address GLBA are in place, the Information Security Policy does not specific...

The University concurs with the finding that the University does not have a written information security program that addresses all required elements of the Gramm-Leach-Bliley Act . While the University processes defined to address GLBA are in place, the Information Security Policy does not specifically address Gramm-Leach-Bliley Act (GLBA) security criteria. It is now understood that the defined processes that address and support GLBA security criteria need to be put into a format that is published for access by the Lincoln community. Lincoln has started the process to create and publish the written information security program that addresses all required elements of GLBA. The corrective measures above are designed to ensure full compliance with all required elements of the GLBA.

View Audit 395639

Finding 1191820 (2025-003)

Material Weakness 2025

Lincoln University

MO

Questioned Costs Student Financial Aid Reporting

The Office of Student Financial Services acknowledges the findings related to Reporting: Financial Reporting through the Common Origination and Disbursement (COD) System. We recognize the importance of accurate and timely reporting of origination data to ensure compliance with federal Pell Grant and...

The Office of Student Financial Services acknowledges the findings related to Reporting: Financial Reporting through the Common Origination and Disbursement (COD) System. We recognize the importance of accurate and timely reporting of origination data to ensure compliance with federal Pell Grant and Direct Loan requirements. The Office of Student Financial Services will implement additional controls to ensure accuracy of origination and disbursement reporting to COD. Prior to submission, staff will review enrollment dates, academic year dates, and disbursement dates against the academic calendar and student records in Colleague. A second-level review will be performed for a sample of records each term. Written procedures will be updated to document required verification steps before transmitting data to COD. Training will be provided to staff responsible for COD processing. These actions are intended to correct the issues contributing to this repeat finding, strengthen reporting accuracy, and ensure continued compliance with COD reporting requirements.

View Audit 395639

Finding 1191812 (2025-002)

Material Weakness 2025

St Luke's Health Corporation

MO

Matching / Level of Effort / Earmarking Questioned Costs

Finding 2025-002 – Earmarking (Significant Deficiency) View of Responsible Official: Management concurs with the finding. Management costs charged to the FEMA award exceeded the 5% statutory cap. Management has implemented enhanced monitoring procedures to track cumulative management costs against t...

Finding 2025-002 – Earmarking (Significant Deficiency) View of Responsible Official: Management concurs with the finding. Management costs charged to the FEMA award exceeded the 5% statutory cap. Management has implemented enhanced monitoring procedures to track cumulative management costs against total FEMA obligated amounts on a recurring basis and to review compliance with the statutory limitation before additional amounts are submitted or recorded. Specifically, management will maintain a calculation of the allowable management cost cap based on total FEMA obligations, reconcile cumulative management costs recorded to that cap, and require supervisory review of the calculation and supporting documentation prior to submission of future claims and during period-end close. Management will also review the amount identified as questioned costs and work with the appropriate parties to resolve the excess amount in accordance with applicable grant requirements. Responsible Parties: Director of Finance, Vice President of Finance Anticipated Completion Date: June 30, 2026

View Audit 395627

Finding 1191811 (2025-001)

Material Weakness 2025

St Luke's Health Corporation

MO

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

Management response Finding 2025-001 – Allowability and Period of Performance (Material Weakness) View of Responsible Official: Management concurs with the finding. During the audit period, controls over payroll documentation for FEMA-related labor costs were not sufficiently designed and documented...

Management response Finding 2025-001 – Allowability and Period of Performance (Material Weakness) View of Responsible Official: Management concurs with the finding. During the audit period, controls over payroll documentation for FEMA-related labor costs were not sufficiently designed and documented to demonstrate independent supervisory review and approval of timecards, nor were controls in place to evidence review of wage rates for reasonableness prior to charging labor costs to the award. Management has strengthened its control procedures. Supervisors are required to review and approve employee timecards each pay period in UKG, and compliance with timecard approval is monitored through exception reporting provided to management. In addition, management has implemented a review control over wage rates charged to FEMA claims to verify that rates used are supported and reasonable in accordance with applicable Uniform Guidance requirements and internal policy. These controls will be documented and retained as part of the support for future federal award reporting. Responsible Parties: Payroll Manager, Director of Finance, Vice President of Finance Anticipated Completion Date: Complete

View Audit 395627

Finding 1191809 (2025-002)

Material Weakness 2025

Government of Puerto Rico Department of Corrections and Rehabilitation

PR

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

The DCR's management acknowledged the delay in preparing and retaining OP-15 documentation and stated that the Department's immediate priority was to ensure that employees received their authorized salary increases in a timely manner. To address this priority, management updated the internal payroll...

The DCR's management acknowledged the delay in preparing and retaining OP-15 documentation and stated that the Department's immediate priority was to ensure that employees received their authorized salary increases in a timely manner. To address this priority, management updated the internal payroll database by developing an electronic listing of affected employees and implementing approved salary changes directly within the system. Management indicated that this approach ensured that employees were compensated in accordance with approved salary adjustments, although the supporting documentation in personnel files lagged behind. Management further indicated that corrective efforts are currently underway to address a more recent, similar personnel action involving fewer than 50 employees and that, upon completion, the Department intends to proceed with preparing the OP-15 forms related to the broader population of over 4,000 employees. Management expects to complete the preparation and filing of the outstanding OP-15 documentation prior to the end of fiscal year 2026.

View Audit 395624

Finding 1191785 (2025-001)

Material Weakness 2025

Elk City Independent School District No. 06

OK

Questioned Costs Subrecipient Monitoring Material Weakness

Elk City Public Schools will ensure that on all future construction contracts that deal with federal awards, requirements of the Davis-Bacon Act will be included. Prevailing wages will be inserted into the language of the contract and shall be signed by contractors and subcontractors. All contracts ...

Elk City Public Schools will ensure that on all future construction contracts that deal with federal awards, requirements of the Davis-Bacon Act will be included. Prevailing wages will be inserted into the language of the contract and shall be signed by contractors and subcontractors. All contracts will also spell out weekly reporting requirements of certified wages paid by contractors and subcontrators. In addition, ECPS will ensure that Davis-Bacon information is posted at all job sites. These policy changes will be implemented immediately and be in place as of October 9, 2025.

View Audit 395599

Finding 1191776 (2025-002)

Material Weakness 2025

Archway Station, Inc.

MD

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking Questioned Costs

Views of Responsible Officials and Planned Corrective Actions: We agree with the recommendation and will 1) develop and adopt written policies, procedures, and standards of conduct in compliance with the Uniform Guidance, and 2) initiate ongoing grant training for applicable personnel.

View Audit 395592

Finding 1191758 (2025-003)

Material Weakness 2025

United Tribes Technical College

ND

Special Tests & Provisions Significant Deficiency Matching / Level of Effort / Earmarking

Recommendation: We recommend the College not disburse funds from the debt service reserve fund without the approval of USDA in accordance with the loan agreement. Action Taken: The USDA loan was paid in full on December 10, 2025.

View Audit 395558

Finding 1191583 (2025-005)

Material Weakness 2025

Municipality of Catano

PR

Questioned Costs Subrecipient Monitoring Reporting § 200.302 § 200.328 § 200.329

COMMONWEALTH OF PUERTO RICO MUNICIPALITY OF CATAÑO Corrective Action Plan For the Fiscal Year Ended June 30, 2025 _____________________________________________________________________________________________________________________ Audit Report: Reports on Compliance and Internal Control in Accordan...

COMMONWEALTH OF PUERTO RICO MUNICIPALITY OF CATAÑO Corrective Action Plan For the Fiscal Year Ended June 30, 2025 _____________________________________________________________________________________________________________________ Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and OMB Super Circular Uniform Guidance Audit Period: July 1, 2024 – June 30, 2025 Fiscal Year: 2024-2025 Principal Executive: Hon. Julio Alicea Vasallo, Mayor Contact Person: Mrs. Honoris Machado, Finance Director Phone: (787) 788-0404 Original Finding Number: 2025-005 Statement of Concurrence or Nonconcurrence: We concur we the finding. Corrective Action: Adopted Measures • Expense Synchronization: A protocol will be implemented requiring contracted consultants to record and report incurred expenses only when a validated disbursement voucher is available, thereby ensuring the integrity of the financial flow. • Reconciliation: The office will conduct a detailed comparison between the draft quarterly report and the general ledger to identify and correct any discrepancies prior to final submission. • Compliance Timeline: An internal deadline will be established for the submission of the report, ensuring attainment of the minimum percentage required under the Quality Activities category through accurate financial data. Expected Outcome To ensure that all financial information submitted is complete, accurate, and fully aligned with the Municipality’s accounting records, thereby eliminating the risk of audit findings. Implementation Date: March 2026. Responsible persons: • Person responsible for the implementation: Mr. Carlos Flores, Federal Program’s Subdirector • Person responsible for the supervision: Mrs. Yolanda Maldonado, Federal Program’s Director

View Audit 395450

Finding 1191582 (2025-004)

Material Weakness 2025

Municipality of Catano

PR

Matching / Level of Effort / Earmarking

COMMONWEALTH OF PUERTO RICO MUNICIPALITY OF CATAÑO Corrective Action Plan For the Fiscal Year Ended June 30, 2025 _____________________________________________________________________________________________________________________ Audit Report: Reports on Compliance and Internal Control in Accordan...

COMMONWEALTH OF PUERTO RICO MUNICIPALITY OF CATAÑO Corrective Action Plan For the Fiscal Year Ended June 30, 2025 _____________________________________________________________________________________________________________________ Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and OMB Super Circular Uniform Guidance Audit Period: July 1, 2024 – June 30, 2025 Fiscal Year: 2024-2025 Principal Executive: Hon. Julio Alicea Vasallo, Mayor Contact Person: Mrs. Honoris Machado, Finance Director Phone: (787) 788-0404 Original Finding Number: 2025-004 Statement of Concurrence or Nonconcurrence: We concur we the finding. Corrective Action: Corrective Action Implemented 1. Request for Technical Assistance Technical assistance was requested from the corresponding state agency and all municipal components involved in the process, with the purpose of: • Establishing a structured work plan. • Aligning compliance processes. • Clearly defining the documentation required for quarterly reports. • Reviewing the processes of the Fiscal Monitoring System Portal. • Incorporating technical recommendations issued by the agency. 2. Measures Adopted by This Office As a result of the technical assistance, the following corrective actions were implemented: • Development of a Required Documentation Checklist to standardize the collection of information. • Clear definition of the scope of collaborative work among offices. • Formal establishment of tasks, roles, and responsibilities. • Assignment and monitoring of the limited staff designated by the office. • Update of the Fiscal Monitoring System Portal to grant access to newly authorized personnel. • A deadline will be established for the submission of the quarterly report, thereby ensuring compliance with the minimum percentage required by the program under the quality activities category. Results Achieved As a result of the implementation of the corrective action plan: • The required information from the various municipal offices was collected completely and in a timely manner. • The quarterly report was submitted by the established deadline (01/15/2026). • The agency validated compliance (01/30/2026). • The disbursement of funds was successfully received (02/04/2026). Evidence of Effectiveness • Compliance with the established deadline. • Confirmation of receipt and approval of the report. • Disbursement processed without findings or additional requirements. • Strengthened interdepartmental coordination. • A documented and standardized process for future quarterly cycles. Standardization and Prevention • The Checklist was adopted as an official tool of the process. • The assignment of roles and responsibilities was formally established. • Access to the Fiscal Monitoring System Portal is kept up to date. • Continuous monitoring was established to ensure compliance in future quarters. Observation Regarding Human Resources Although the corrective action proved effective and allowed for the timely submission of the report and receipt of the disbursement, the personnel currently assigned to the process also support multiple additional programs. While the situation was corrected following internal reorganization, the shared operational workload could pose a risk to the long-term sustainability of the control. It is recommended that the allocation of additional human resources be evaluated to strengthen operational continuity and prevent recurrence of the previously identified issue. Conclusion and Closure The corrective action implemented proved to be effective and sustainable, eliminating the deficiencies identified in the process of collecting and submitting quarterly reports. Regulatory compliance and strengthened administrative management are evidenced, ensuring continuity in the timely receipt of future disbursements. Implementation Date: Fiscal Year 2025-2026. Responsible persons: • Person responsible for the implementation: Mr. Carlos Flores, Federal Program’s Subdirector • Person responsible for the supervision: Mrs. Yolanda Maldonado, Federal Program’s Director

View Audit 395450

Finding 1191568 (2025-006)

Material Weakness 2025

PROJECT WORTHMORE

CO

Internal Control / Segregation of Duties Questioned Costs HUD Housing Programs § 200.303

Management will implement a formal review and approval process for Federal reporting to ensure compliance with 2 CFR 200.303. • Review Process: Establish standardized procedures for preparation, review, and submission of Federal reports. • Roles and Responsibilities: Assign responsibility for prepar...

Management will implement a formal review and approval process for Federal reporting to ensure compliance with 2 CFR 200.303. • Review Process: Establish standardized procedures for preparation, review, and submission of Federal reports. • Roles and Responsibilities: Assign responsibility for preparation and independent review of reports. • Documented Approval: Require documented evidence of review and approval. • Supporting Documentation: Ensure all reported amounts are supported by underlying records and reconciliations. • Training: Prior to next Federal Grant requiring a single audit, provide training on Federal reporting requirements and internal control expectations.

View Audit 395436

Corrective Action Plans

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