Corrective Action Plans

Finding 1239727 (2025-008)

Material Weakness 2025

FOOTPRINTS, INC.

MO

Internal Control / Segregation of Duties Subrecipient Monitoring Allowable Costs / Cost Principles § 200.329

Cash Management – Assistance Listing Number 14.251 Recommendation: We recommend that management establish and implement policies to retain proof of amounts requested for reimbursement. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in re...

Cash Management – Assistance Listing Number 14.251 Recommendation: We recommend that management establish and implement policies to retain proof of amounts requested for reimbursement. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization will establish and implement policies to retain proof of amounts requested for reimbursement. Name of the contact person responsible for corrective action: Joel Bailey Planned completion date for corrective action plan: December 31, 2026

View Audit 414437

Finding 1239722 (2025-001)

Material Weakness 2025

Jewish Family Services

OH

Material Weakness Matching / Level of Effort / Earmarking

Finding Number: 2025-001 Condition: The Organization failed to correctly record grant revenue for certain federal programs with direct client assistance revenues during their 2025 fiscal year. Planned Corrective Action: Management will continue to evaluate current processes and practices to determin...

Finding Number: 2025-001 Condition: The Organization failed to correctly record grant revenue for certain federal programs with direct client assistance revenues during their 2025 fiscal year. Planned Corrective Action: Management will continue to evaluate current processes and practices to determine that contributions are being recognized on a gross or net basis dependent on the agency status of the transaction. This will include building out currently utilized flowcharts/checklists as well as adding indicators into their assessment which will result in additional clarity regarding the agency status of the transaction and ensuring that revenues and expenses are being appropriately matched in the correct period for these conditional contributions from the federal government. Contact Person Responsible for Corrective Action: Justin Fisher, Senior Director of Accounting Anticipated Completion Date: August 31, 2026

View Audit 414435

Finding 1239709 (2025-006)

Material Weakness 2025

Charter Township of Redford

MI

Matching / Level of Effort / Earmarking Cash Management Material Weakness § 200.303

Finding Number: 2025-006 Condition: The Township did not have the appropriate controls in place to ensure reports and reimbursement requests that were required to be submitted under the grant were complete and accurate as well as ensuring the matching requirement was properly reviewed. Planned Corre...

Finding Number: 2025-006 Condition: The Township did not have the appropriate controls in place to ensure reports and reimbursement requests that were required to be submitted under the grant were complete and accurate as well as ensuring the matching requirement was properly reviewed. Planned Corrective Action: The Township will update the Grant Policy to include a requirement for dual review on all grant reporting. Contact person responsible for corrective action: Finance Director Anticipated Completion Date: 3/31/2026

View Audit 414415

Finding 1239705 (2025-001)

Material Weakness 2025

Region Nine Development Commission

MN

Reporting Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

2025-001 Federal Awards Internal Control CORRECTIVE ACTION PLAN (CAP): Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Actions Planned in Response to Finding: The Commission will review policies and procedures to ensure compliance with the Uniform Gui...

2025-001 Federal Awards Internal Control CORRECTIVE ACTION PLAN (CAP): Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Actions Planned in Response to Finding: The Commission will review policies and procedures to ensure compliance with the Uniform Guidance. Official Responsible for Ensuring CAP: Jessica Beyer, Deputy Director, is the official responsible for ensuring corrective action. Planned Completion Date for CAP: June 30, 2026 Plan to Monitor Completion of CAP: The Board of Directors will be monitoring this corrective action plan. Jessica Beyer Deputy Director

View Audit 414405

Finding 1239673 (2025-004)

Material Weakness 2025

Hope the Mission

CA

Reporting Subrecipient Monitoring Matching / Level of Effort / Earmarking § 200.510

2025-004 Per 2 CFR §200.510(b), the SEFA must include: - A list of individual federal programs by agency, including the Assistance Listing number. - The total federal awards expended for each program, including capital projects funded by federal grants. - Amounts passed through to subrecipients. - O...

2025-004 Per 2 CFR §200.510(b), the SEFA must include: - A list of individual federal programs by agency, including the Assistance Listing number. - The total federal awards expended for each program, including capital projects funded by federal grants. - Amounts passed through to subrecipients. - Outstanding balances for loan or loan guarantee programs. - Significant accounting policies used in preparing the SEFA. Recommendation: We recommend that management: - Implement a reconciliation process to ensure that all federal expenditures are accurately captured in the SEFA. - Provide additional training for accounting personnel on federal reporting requirements. - Review all local government awards to determine whether Federal funds are a component of the contracts. - Review SEFA data for completeness and accuracy before submission. Management’s Response: Management concurs with the recommendation. HTM recognizes that accurate SEFA preparation begins with identification of federal funding when an award is received and cannot depend solely on a year-end exercise performed after transactions have already been recorded. Management will establish a federal award identification and reconciliation process connecting contract administration, accounting records, federal award information, and the final SEFA. Corrective Action Status and Plan: Management is reviewing the FY 2025 SEFA and related award information and plans to formalize an enhanced SEFA preparation and review process by December 31, 2026. Finance/Accounting will maintain a centralized award inventory identifying the awarding agency and pass-through entity, Assistance Listing number, period of performance, federal and nonfederal funding components, amounts passed through to subrecipients, outstanding loan or loan-guarantee balances when applicable, and the accounting policies used to prepare the SEFA. At least quarterly, Accounting will reconcile the inventory and cumulative federal expenditures to the general ledger, grant billing records, award agreements, and supporting schedules; differences will be investigated, resolved, and documented. Management also plans to complete a preliminary year-to-date SEFA review before year-end. As part of the immediate FY 2025 remediation, management will document the bridge from the prior SEFA to the final revised schedule; retain support for the funding classification of County Operating and Measure H amounts; reconcile the final SEFA to the general ledger and project schedules; and ensure related amounts and disclosures in the audit report are updated consistently. The additional implementation activities are described below. • Reviewing all new grant agreements and contracts to identify funding sources and determine the appropriate federal participation percentage. • Providing targeted training to accounting personnel regarding federal reporting requirements and awards with blended funding sources. • Establishing a secondary management review of the SEFA, including reconciliation of expenditures to underlying award agreements and supporting schedules. The Mission's procedures for preparing the Schedule of Expenditures of Federal Awards (SEFA) did not adequately address contracts containing multiple funding sources. In certain instances, awards administered through local government entities contained both federal and state funding components; however, the agreements were initially classified as fully federal for SEFA reporting purposes. In addition, no formal process existed to systematically review funding agreements and document the federal funding portion of each award prior to SEFA preparation. The enhanced review and monitoring procedures will improve the accuracy and completeness of SEFA reporting, ensure that expenditures are properly classified between federal and non-federal funding sources, and reduce the risk of future reporting errors and noncompliance with Uniform Guidance requirements. Name of responsible person: Tisha Lazare, Chief Financial Officer Anticipated completion date: December 31, 2026

View Audit 414344

Finding 1239661 (2025-001)

Material Weakness 2025

Institute for Native Pacific Education and Culture

HI

Internal Control / Segregation of Duties Significant Deficiency Matching / Level of Effort / Earmarking § 200.308

SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Finding No.: Compliance and Internal Control over Compliance Findings 2025-001 Level of Effort - Changes in Program Plans - Significant Deficiency in Internal Control over Compliance and Noncompliance Recommendation: We recommend that INPEACE...

SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Finding No.: Compliance and Internal Control over Compliance Findings 2025-001 Level of Effort - Changes in Program Plans - Significant Deficiency in Internal Control over Compliance and Noncompliance Recommendation: We recommend that INPEACE implement procedures to regularly monitor the level of effort of key personnel against the requirements of each federal award, and to identify changes that require prior written approval from the awarding agency before those changes occur. We also recommend that INPEACE promptly request approval from the U.S. Department of Education for any current changes in level of effort that have not been approved. View of Responsible Officials: INPEACE concurs with the finding. Corrective Action: INPEACE will submit a written request to the U.S. Department of Education to obtain approval for the current change in the Project Director’s level of effort for the Keiki Steps program. Going forward, INPEACE will implement procedures to monitor the level of effort of key personnel against the requirements outlined in each federal award. At the beginning of each grant period, the Finance and Grants/Development departments will review the Grant Award Notification and applicable award terms to identify key personnel and required levels of effort. Any proposed changes to the duties, assignment, or level of effort of key personnel will be reviewed by the appropriate Program Director, CFO, and CPO and/or CEO prior to the change taking effect. The review will determine whether prior written approval from the federal awarding agency is required under the applicable federal regulations and award terms. When required, INPEACE will obtain and document the approval before implementing the change. INPEACE will also incorporate a review of key personnel level of effort into its periodic grant monitoring procedures. Time and effort reports and personnel allocations will be reviewed to identify significant variances from the level of effort required by the award. Any identified variance requiring prior approval will be promptly addressed with the applicable federal awarding agency. These procedures will help ensure that INPEACE remains in compliance with federal award requirements and that changes in key personnel responsibilities or level of effort are properly reviewed, approved, and documented. Contact Person Responsible for Action: Sanoe Marfil, CEO and Marissa Pico, CFO Anticipated Completion Date: October 31, 2026

View Audit 414338

Finding 1239564 (2025-001)

Material Weakness 2025

Children's Health System of Texas

CA

Matching / Level of Effort / Earmarking Subrecipient Monitoring § 200.303

Management did not fully document the level of effort for key personnel identified as Project Directors who were providing in-kind support to the grant program. Although this grant has ended, management recognizes the importance of maintaining adequate documentation and monitoring procedures for fut...

Management did not fully document the level of effort for key personnel identified as Project Directors who were providing in-kind support to the grant program. Although this grant has ended, management recognizes the importance of maintaining adequate documentation and monitoring procedures for future grants. Management will update its grant policies and procedures to include specific requirements for tracking and documenting in-kind personnel time, as well as an approval and review process to ensure compliance with grant requirements. Contact Person: Kris Sanders, SVP Network Development and Digital Care Delivery Krishandra.Sanders@childrens.com Expected Completion Date: December 31, 2026

View Audit 414276

Finding 1239559 (2025-007)

Material Weakness 2025

Sound Generations

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Eligibility § 200.303

Special Programs for the Aging, Title III, Part C, Nutrition Services - Assistance Listing No. 93.045 Nutrition Services Incentive Program – Assistance Listing No. 93.053 Recommendation: Management should strengthen controls over Community Dining participant tracking to ensure participant records ar...

Special Programs for the Aging, Title III, Part C, Nutrition Services - Assistance Listing No. 93.045 Nutrition Services Incentive Program – Assistance Listing No. 93.053 Recommendation: Management should strengthen controls over Community Dining participant tracking to ensure participant records are reviewed and supported by appropriate documentation. Management should also implement monitoring procedures to verify that participant counts and listings are complete, accurate, and properly supported. Explanation of disagreement with audit finding: There is no disagreement with the finding. Action taken in response to finding: Sound Generations is updating procedures to strengthen controls over recording participant information, including participant profiles and meal services. Administrative staff will conduct regular site visits to train and monitor site staff and volunteers on these procedures. Name(s) of the contact person(s) responsible for corrective action: Kristina Morgan, Controller, at 206-445-5671. Planned completion date for corrective action plan: June 2027.

View Audit 414272

Finding 1239552 (2025-004)

Material Weakness 2025

Sound Generations

WA

Period of Performance Reporting Significant Deficiency § 200.303

Special Programs for the Aging, Title III, Part C, Nutrition Services Assistance Listing No. 93.045 Nutrition Services Incentive Program – Assistance Listing No. 93.053 Recommendation: Management at Sound Generations should review its existing control structure and ensure that there are adequate pro...

Special Programs for the Aging, Title III, Part C, Nutrition Services Assistance Listing No. 93.045 Nutrition Services Incentive Program – Assistance Listing No. 93.053 Recommendation: Management at Sound Generations should review its existing control structure and ensure that there are adequate processes and controls to ensure program income is recorded correctly for Federal programs, based on the underlying supporting documentation. Management should also continue to reinforce review procedures over program income reporting to help ensure recording errors are detected and corrected on a timely basis. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Sound Generations is reviewing and revising our control structure using our new software and new staff with the appropriate experience. Name(s) of the contact person(s) responsible for corrective action: Kristina Morgan, Controller, at 206-445-5671. Planned completion date for corrective action plan: major initiative to be completed in 2027.

View Audit 414272

Finding 1239547 (2025-003)

Material Weakness 2025

Citizens Medical Center, Inc.

KS

Reporting Significant Deficiency Matching / Level of Effort / Earmarking

2025-003 – Reporting Corrective Action Plan: Management is in communication with the audit firm working on completing the 2024 audit. The 2025 audit has been submitted timely and it is anticipated this will not be an issue in future years. Person(s) Responsible: Allan Scroggins, CFO Timing for Imple...

2025-003 – Reporting Corrective Action Plan: Management is in communication with the audit firm working on completing the 2024 audit. The 2025 audit has been submitted timely and it is anticipated this will not be an issue in future years. Person(s) Responsible: Allan Scroggins, CFO Timing for Implementation: Fiscal year 2026

View Audit 414270

Finding 1239546 (2025-003)

Material Weakness 2025

Upmc

PA

Reporting Internal Control / Segregation of Duties Subrecipient Monitoring

Federal Agency: U.S. Department of Health and Human Services Assistance Listing Nos.: 93.918, Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease (Ryan White, Part C) and 93.153, Coordinated Services and Access to Research for Women, Infants, Children, and Youth (Rya...

Federal Agency: U.S. Department of Health and Human Services Assistance Listing Nos.: 93.918, Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease (Ryan White, Part C) and 93.153, Coordinated Services and Access to Research for Women, Infants, Children, and Youth (Ryan White, Part D) Condition: Ryan White, Part C and Part D require the use of program income under the additive method, which requires program income earned from a federally funded program is added to the federal award amount and used to further program objectives. Under the method, allowable expenditures of program income are included on the SEFA. UPMC’s SEFA did not include expenditures related to program income, which were allowable. UPMC’s preliminary SEFA did not include these expenditures, which resulted in the incorrect identification of major programs. The SEFA was subsequently corrected. Corrective action plan: UPMC has remediated the control deficiency as of the period ending December 31, 2025, and has appropriately revised its processes and internal controls to expenditures of program income in the SEFA for impacted programs. Completion: September 2026

View Audit 414268

Finding 1239520 (2025-001)

Material Weakness 2025

Boys and Girls Club of Hawaii

HI

Subrecipient Monitoring Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

CORRECTIVE ACTION PLAN September 17, 2026 Boys and Girls Club of Hawaii (BGCH) respectfully submits the following corrective action plan for the year ended December 31, 2025. Name and address of independent public accounting firm: N&K CPAs, 999 Bishop Street, Suite 2200, Honolulu, HI 96813 Audit Per...

CORRECTIVE ACTION PLAN September 17, 2026 Boys and Girls Club of Hawaii (BGCH) respectfully submits the following corrective action plan for the year ended December 31, 2025. Name and address of independent public accounting firm: N&K CPAs, 999 Bishop Street, Suite 2200, Honolulu, HI 96813 Audit Period: The calendar year ended December 31, 2025. Addressee: State of Hawaii, Department of Human Services Benefit, Employment and Support Services Division 1010 Richards Street, Suite 512 Honolulu, HI 96813 Primary Contact Person: Paddy Kauhane, President & CEO Contact Person Responsible: Florrie Charnaw, CFO Finding: The finding from the December 31, 2025 Schedule of Findings and Questioned Costs - #2025-001: Noncompliance with Grant Award Terms – Significant Deficiency Federal agency: Department of Health and Human Services Program: ALN No. 93.558 Temporary Assistance for Needy Families Pass-through entity: State Department of Human Services Award number and award year: DHS-24-TANF-0116, June 3, 2024 to August 2, 2025. Criteria: The DHS-24-TANF-0116 award specifically prohibits BGCH from charging youths or their families for programs or services provided under the award without prior approval from the State. Condition: While BGCH fully complied with providing the required services at the locations included in the Contract, BGCH did charge Summer Intersession fees to some youth at all nine BGCH Clubhouses without seeking prior approval of the STATE. Completion Date: September 30, 2026 Corrective Action Plan BGCH has made full refunds of the summer 2025 fees, provided all supporting documentation to DHS for them, and provided the Grant Policy and Grant Management Procedures by the required March 31, 2026 deadline. We remain compliant with this contract and will continue to fully comply with the DHS CAP executed in March 2026.

View Audit 414254

Finding 1239518 (2025-001)

Material Weakness 2025

Council Towers Housing Development Fund Corporation

NY

Subrecipient Monitoring HUD Housing Programs Matching / Level of Effort / Earmarking

Project paid expenses on behalf of an affiliate in the amount of $384.00 from Project funds without prior HUD approval. As of December 31, 2025, the affiliate owed the Project $384.00. a. Comments on the Finding and Each Recommendation Management agrees with the findings and recommendation. The paym...

Project paid expenses on behalf of an affiliate in the amount of $384.00 from Project funds without prior HUD approval. As of December 31, 2025, the affiliate owed the Project $384.00. a. Comments on the Finding and Each Recommendation Management agrees with the findings and recommendation. The payment was made in error due to an oversight into the invoice approval process. b. Action(s) Taken or Planned on the Finding The affiliate reimbursed the Project for the full amount of $384.00 on 04/29/2026.Management implemented an additional approval control in RealPage requiring review and approval by the Housing Director and/or the Property Manager prior to payment processing. This control helps ensure invoices are charged to the correct property and prevents one project from paying expenses on behalf of another project or affiliate. Management will continue to monitor compliance with these procedures.

View Audit 414253

Finding 1239505 (2025-003)

Material Weakness 2025

Ecology Education, Inc.

ME

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

Loan Payment Compliance – Criteria: Ecology Education, Inc. (the School) is required to make monthly payments of principal and interest towards its loan balance in accordance with the United States Department of Agriculture Requirements. Condition: During 2025, the School was in monetary default und...

Loan Payment Compliance – Criteria: Ecology Education, Inc. (the School) is required to make monthly payments of principal and interest towards its loan balance in accordance with the United States Department of Agriculture Requirements. Condition: During 2025, the School was in monetary default under the terms of its loan agreement due to missed loan payments. Cause: The School was unable to fulfill loan payment requirements as a result of cash flow challenges encountered during the fiscal year. Effect: Loan payments are not made in accordance with federal guidelines. Recommendation: We recommend that management should develop and implement stronger controls to ensure compliance with future loan payment requirements. Responsible Parties: Drew Dumsch (President/CEO) and Anthony Pyatt (Business Manager). Corrective Action Taken or Planned: Continuing to work with USDA Rural Development on workout plan including implementing stronger controls to ensure compliance with future loan payment requirements. This includes implementing Year 3 of the Fiscal Strategy Plan as part of the workout agreement.

View Audit 414238

Finding 1239504 (2025-002)

Material Weakness 2025

Ecology Education, Inc.

ME

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

Reserve Account Compliance – Criteria: Ecology Education, Inc. (the School) is required to fund certain loan reserve accounts on a monthly basis in accordance with requirements prescribed by the United States Department of Agriculture. Condition: During 2025, the School did not fulfill its loan rese...

Reserve Account Compliance – Criteria: Ecology Education, Inc. (the School) is required to fund certain loan reserve accounts on a monthly basis in accordance with requirements prescribed by the United States Department of Agriculture. Condition: During 2025, the School did not fulfill its loan reserve requirements, causing the School to be in default of its loan agreement. Cause: The School was unable to fulfill the reserve requirements as a result of cash flow challenges encountered during the fiscal year. Effect: Reserve requirements are not fulfilled in accordance with federal guidelines. Recommendation: We recommend that management should develop and implement a systematic process to restore and maintain the required levels to maintain compliance with reserve requirements going forward. Responsible Parties: Drew Dumsch (President/CEO) and Anthony Pyatt (Business Manager). Corrective Action Taken or Planned: Continuing to work with USDA Rural Development on workout plan including implementing a systematic process to restore and maintain on a monthly basis the required levels to maintain compliance with reserve requirements going forward.

View Audit 414238

Finding 1239337 (2025-001)

Material Weakness 2025

Northwell Health, Inc.

NY

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

Corrective Action Plan December 31, 2025 Finding 2025-001 – Transparency Reporting Identification of the federal program: Federal Grantor: United States Department of Health and Human Services Assistance Listing Number: 93.243 Substance Abuse and Mental Health Services Projects of Regional and Natio...

Corrective Action Plan December 31, 2025 Finding 2025-001 – Transparency Reporting Identification of the federal program: Federal Grantor: United States Department of Health and Human Services Assistance Listing Number: 93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance Federal Grant Award No.: H79TI084037 Planned corrective actions: As it relates to the Federal Funding Accountability and Transparency Acct (FFATA) reporting, Management has revised procedures to provide further clarity on FFATA reporting. To prevent recurrence, responsible staff will receive annual in-service training on FFATA reporting requirements and the importance of timely compliance with the Transparency Act. In addition, management is reviewing and updating its standard operating procedures for FFATA reporting to strengthen internal controls and ensure all reportable subaward actions are identified and submitted within the required reporting period. Responsible Party: Diane Marbury, AVP Grants Management Office Anticipated completion date: Ongoing

View Audit 414190

Finding 1239330 (2025-006)

Material Weakness 2025

Atrium Health, Inc.

NC

Subrecipient Monitoring Cash Management Period of Performance

Finding 2025-006: Information on the Federal Program: Disaster Grants – Public Assistance | Name of Contact Person: Anthony Gattuso, Vice President Accounting Operations | Corrective Action Plan: Atrium Health CMHA management has enhanced the FEMA expenditure review and approval process by implement...

Finding 2025-006: Information on the Federal Program: Disaster Grants – Public Assistance | Name of Contact Person: Anthony Gattuso, Vice President Accounting Operations | Corrective Action Plan: Atrium Health CMHA management has enhanced the FEMA expenditure review and approval process by implementing procedures to ensure all supporting documentation related to the review, approval, and monitoring of FEMA-funded expenditures is retained in a centralized and accessible location. Management established documentation requirements and provided guidance to responsible personnel to ensure sufficient evidence is maintained to demonstrate that controls have been performed and reviewed as designed. Periodic monitoring will be conducted to verify compliance with these documentation retention requirements. | Proposed Completion Date: Completed July 2025.

View Audit 414174

Finding 1239327 (2025-005)

Material Weakness 2025

Atrium Health, Inc.

NC

Student Financial Aid Reporting Matching / Level of Effort / Earmarking

Finding 2025-005: Fiscal Operations Report and Application to Participate (FISAP) Reporting | Name of Contact Person: Jared Smith, Dean of Student Affairs and Enrollment Management & Amy Brown, Director of Financial Aid | Corrective Action Plan: Carolinas College is implementing PowerFAIDS as its ne...

Finding 2025-005: Fiscal Operations Report and Application to Participate (FISAP) Reporting | Name of Contact Person: Jared Smith, Dean of Student Affairs and Enrollment Management & Amy Brown, Director of Financial Aid | Corrective Action Plan: Carolinas College is implementing PowerFAIDS as its new student financial aid management system, with deployment anticipated in August 2027. The new platform is expected to enhance reporting capabilities and address limitations within the current Jenzabar Financial Aid system related to reporting, disbursement verification, and record retention. Until implementation is complete, management will maintain supplemental documentation, including manual records and supporting screenshots, to support the accuracy and completeness of financial aid reporting and related compliance requirements. Additionally, management will perform periodic reviews of reporting outputs to help ensure key reporting information is retained and available for monitoring and audit purposes. | Proposed Completion Date: Management expects interim remediation through enhanced manual documentation and monitoring procedures by December 31, 2026. Following the implementation of PowerFAIDS in August of 2027, a full remediation is expected to be completed by December 31, 2027. Due to the academic-year operating cycle, the College is unable to transition financial aid systems during the middle of an active award year, making a phased implementation approach necessary.

View Audit 414174

Finding 1239325 (2025-004)

Material Weakness 2025

Atrium Health, Inc.

NC

Student Financial Aid Matching / Level of Effort / Earmarking Subrecipient Monitoring § 200.303

Finding 2025-004: Gramm-Leach-Bliley Act (GLBA) – Student Information Security Controls | Name of Contact Person: Jared Smith, Dean of Student Affairs and Enrollment Management & Amy Brown, Director of Financial Aid | Corrective Action Plan: Atrium Health CMHA management has remediated this finding ...

Finding 2025-004: Gramm-Leach-Bliley Act (GLBA) – Student Information Security Controls | Name of Contact Person: Jared Smith, Dean of Student Affairs and Enrollment Management & Amy Brown, Director of Financial Aid | Corrective Action Plan: Atrium Health CMHA management has remediated this finding through the implementation of multifactor authentication (MFA) controls for the Student Information System (SIS) in February 2026. Following implementation, the SIS successfully underwent internal security review procedures in 2026, confirming that the required controls were operating as designed. Management will continue to monitor these controls as part of its ongoing information security and compliance program. | Proposed Completion Date: Completed February 2026.

View Audit 414174

Finding 1239323 (2025-003)

Material Weakness 2025

Atrium Health, Inc.

NC

Student Financial Aid Matching / Level of Effort / Earmarking § 200.303

Finding 2025-003: Notification of Disbursements to or on Behalf of Students | Name of Contact Person: Jared Smith, Dean of Student Affairs and Enrollment Management & Amy Brown, Director of Financial Aid | Corrective Action Plan: Atrium Health CMHA management will work with the current financial aid...

Finding 2025-003: Notification of Disbursements to or on Behalf of Students | Name of Contact Person: Jared Smith, Dean of Student Affairs and Enrollment Management & Amy Brown, Director of Financial Aid | Corrective Action Plan: Atrium Health CMHA management will work with the current financial aid system vendor to identify options for retaining and retrieving disbursement notification letters and related documentation. Management will also implement supplemental procedures, as necessary, to support the retention and accessibility of these records. As a long-term solution, the College plans to transition to the PowerFAIDS financial aid management system, which is expected to provide enhanced document retention and retrieval capabilities and address the deficiencies identified in this finding. | Proposed Completion Date: Management expects to implement interim remediation measures within the current system by December 31, 2026. Following the implementation of PowerFAIDS in August of 2027, a full remediation is expected to be completed by December 31, 2027. Due to the academic-year operating cycle, the College is unable to transition financial aid systems during the middle of an active award year, making a phased implementation approach necessary.

View Audit 414174

Finding 1239321 (2025-002)

Material Weakness 2025

Atrium Health, Inc.

NC

Student Financial Aid Matching / Level of Effort / Earmarking

Finding 2025-002: SFA Review and Approval of Internal Controls over Cash Management, Eligibility, Enrollment Reporting | Name of Contact Person: Jared Smith, Dean of Student Affairs and Enrollment Management & Amy Brown, Director of Financial Aid | Corrective Action Plan: Atrium Health CMHA manageme...

Finding 2025-002: SFA Review and Approval of Internal Controls over Cash Management, Eligibility, Enrollment Reporting | Name of Contact Person: Jared Smith, Dean of Student Affairs and Enrollment Management & Amy Brown, Director of Financial Aid | Corrective Action Plan: Atrium Health CMHA management will strengthen oversight of Student Financial Assistance compliance by improving internal controls over Student Financial Aid (SFA) systems, National Student Clearinghouse reporting, and National Student Loan Data System (NSLDS) processes. Designated personnel will be assigned accountability for each area to ensure key controls are performed consistently and monitored appropriately. In addition, management will develop and implement written standard operating procedures (SOPs) to support compliance with cash management, eligibility, and enrollment reporting requirements. | Proposed Completion Date: Management expects to complete the development and implementation of the SOPs and formal assignment of control responsibilities by December 31, 2026.

View Audit 414174

Finding 1239319 (2025-001)

Material Weakness 2025

Atrium Health, Inc.

NC

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

Finding 2025-001: Internal controls within the Student Financial Assistance (SFA) IT Systems | Name of Contact Person: Jared Smith, Dean of Student Affairs and Enrollment Management & Amy Brown, Director of Financial Aid | Corrective Action Plan: Carolinas College is implementing PowerFAIDS as its n...

Finding 2025-001: Internal controls within the Student Financial Assistance (SFA) IT Systems | Name of Contact Person: Jared Smith, Dean of Student Affairs and Enrollment Management & Amy Brown, Director of Financial Aid | Corrective Action Plan: Carolinas College is implementing PowerFAIDS as its new student financial aid management system, with deployment anticipated in August 2027. The new platform is expected to address limitations in the current Jenzabar Financial Aid system related to reporting capabilities, disbursement verification, and record retention. Until implementation is complete, management will utilize supplemental manual procedures, including maintaining supporting documentation and screenshots, to ensure adequate documentation of eligibility determinations, reporting, and disbursement activities. | Proposed Completion Date: Management expects interim remediation through enhanced manual recordkeeping procedures by December 31, 2026. Following the implementation of PowerFAIDS in August of 2027, a full remediation is expected to be completed by December 31, 2027. Due to the academic-year operating cycle, the College is unable to transition financial aid systems during the middle of an active award year, making a phased implementation approach necessary.

View Audit 414174

Finding 1239283 (2025-005)

Material Weakness 2025

City of Superior

WI

Reporting Significant Deficiency Matching / Level of Effort / Earmarking

Finding 2025-005: Significant Deficiency - Control and Compliance Over Reporting Condition The City does not have proper segregation of duties over the PR29 reporting as the same individual prepares and submits the reports. Of the two quarterly reports selected for testing, neither report had docume...

Finding 2025-005: Significant Deficiency - Control and Compliance Over Reporting Condition The City does not have proper segregation of duties over the PR29 reporting as the same individual prepares and submits the reports. Of the two quarterly reports selected for testing, neither report had documentation of review and approval and neither report had an underlying reconciliation to the general ledger detail for the respective quarter. Our sample was not statistically valid. Corrective Action Plan Corrective Action Planned: When PR29 is entered into IDIS system, another person will submit report. Name(s) of Contact Person(s) Responsible for Corrective Action: Nick Rhinehart, Renee Hoff Anticipated Completion Date: 10/01/2026

View Audit 414136

Finding 1239201 (2025-004)

Material Weakness 2025

Hamilton County Area Neighborhood Development, Inc.

IN

Cash Management Period of Performance Matching / Level of Effort / Earmarking § 200.303

In early 2026, Hamilton County Area Neighborhood Development, Inc. (HAND) hired an experienced controller to prepare the parent and subsidiaries financials. HAND will establish effective internal control systems to ensure compliance with the requirements for grant agreements and cash management comp...

In early 2026, Hamilton County Area Neighborhood Development, Inc. (HAND) hired an experienced controller to prepare the parent and subsidiaries financials. HAND will establish effective internal control systems to ensure compliance with the requirements for grant agreements and cash management compliance requirements.

View Audit 414074

Finding 1239145 (2025-002)

Material Weakness 2025

CHURCH OF THE NEW COVENANT

PA

Internal Control / Segregation of Duties Matching / Level of Effort / Earmarking Procurement, Suspension & Debarment

Regarding Finding 2025-002-Limited Segregation of Duties, no particular rule, law, or code is cited for review. The Organization in this case was a church, open to the public, whose books and records, including the expenditures for this project, were open to review and inspection by its members and ...

Regarding Finding 2025-002-Limited Segregation of Duties, no particular rule, law, or code is cited for review. The Organization in this case was a church, open to the public, whose books and records, including the expenditures for this project, were open to review and inspection by its members and were regularly reviewed by the board of directors of the church, who met monthly. Related to any corrective action regarding this finding, pertaining to any future federal monies, Church of the New Covenant commits to maintaining adequate segregation of duties among personnel who are responsible for submitting requisitions, performing accounting, recordkeeping, and bank reconciliation functions, and will consider utilizing a firm to independently review these functions as needed in the future.

View Audit 414002

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