Corrective Action Plans

Finding 1227380 (2025-005)

Material Weakness 2025

Community Action Partnership of Mercer County

PA

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

The regulation speaks to submitting quarterly reports within a given time frame. The regulation does not require formal evidence that the required reports were verified before submission. The organization is of the opinion that once complete the CFO reviews the report and verifies before submission....

The regulation speaks to submitting quarterly reports within a given time frame. The regulation does not require formal evidence that the required reports were verified before submission. The organization is of the opinion that once complete the CFO reviews the report and verifies before submission. The organization CEO may review be included in the review process. Responsible Individual: Chief Financial Officer- Scott Korba Estimated Completion Date: End of next quarter – September 2026

View Audit 409469

Finding 1227368 (2025-001)

Material Weakness 2025

Housing Initiatives, INC

WI

Internal Control / Segregation of Duties Reporting Equipment & Real Property Management

2025-001 Financial Reporting – Material Adjustments Criteria: Internal controls over financial reporting should be designed and implemented to ensure that financial statements are free from material misstatement, whether due to error or fraud, and that such misstatements are prevented or detected an...

2025-001 Financial Reporting – Material Adjustments Criteria: Internal controls over financial reporting should be designed and implemented to ensure that financial statements are free from material misstatement, whether due to error or fraud, and that such misstatements are prevented or detected and corrected on a timely basis. Condition: During the audit, material audit adjustments were proposed and accepted by management. The adjustments were necessary to correct material misstatements in the financial statements that had not been identified by the organization’s internal control processes. Significant adjustments included: • Recording loan forgiveness, which corrected the overstatement of liabilities and understatement of revenues • Reclassifying HOME program assistance from revenue to deferred loan liability, which corrected the overstatement of revenues and changes in net assets and the understatement of liabilities • Reclassifying development costs from expenses to property and equipment, which corrected the understatement of assets and overstatement of expenses. Cause: The Organization’s internal control processes did not identify or correct these misstatements prior to the audit. This suggests certain review and reconciliation procedures may not be operating effectively. Effect: Financial statements generated from the accounting system and provided to the board may contain error(s), which could potentially affect decision-making and oversight. Auditor’s Recommendation: We recommend that management review and enhance its financial reporting processes, including implementing more robust review procedures and reconciliations, to help ensure that misstatements are identified and corrected prior to the audit. Auditee’s Response: Management agrees with this finding and agrees with the recommendation. Management will evaluate current procedures and implement improvements to strengthen the accuracy and completeness of financial reporting. Contact Person: Brad Hinkfuss Anticipated Completion: December 31, 2026

View Audit 409457

Finding 1227342 (2025-006)

Material Weakness 2025

Wittenberg University

OH

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

Condition Summary: 5 of 40 credit balance refunds were processed outside the required 14-day timeframe, controls over review and approval were not operating for the full year, and the University could not produce a report distinguishing Title IV credit balances from other funding sources. Management...

Condition Summary: 5 of 40 credit balance refunds were processed outside the required 14-day timeframe, controls over review and approval were not operating for the full year, and the University could not produce a report distinguishing Title IV credit balances from other funding sources. Management Response / Corrective Action Plan: Management concurs with this finding. As part of the University's full review of 2025-2026 cash management activity, a revised credit-balance workflow has been established requiring supervisory approval and a system-generated report that separately identifies balances attributable to Title IV funds. Staff associated with the prior lapse in controls are no longer employed at the institution, and the engaged consulting firm is providing interim monitoring of the 14-day refund requirement, with weekly exception reporting until the control is demonstrated to be operating effectively on a sustained basis. Responsible Party - Ebony Martin, Associate Director of Student Accounts Title - Interim oversight: Engaged Consulting Firm Anticipated Completion Date - August 24, 2026 Note: Because the corrective actions described above were substantially implemented during and after the fiscal year 2025 audit period, management anticipates that this condition, or elements of it, may continue to be identified as a finding in the University's fiscal year 2025-2026 single audit. Full operating effectiveness of the revised controls will not be demonstrable until they have been in place for a complete testing cycle.

View Audit 409430

Finding 1227324 (2025-009)

Material Weakness 2025

Wittenberg University

OH

Student Financial Aid Matching / Level of Effort / Earmarking

Condition Summary: 3 of 25 loans tested lacked a signed promissory note, and 24 of 25 loans lacked adequate repayment documentation. Management Response / Corrective Action Plan: Management concurs with this finding. The University has directed the engaged consulting firm to complete a full inventor...

Condition Summary: 3 of 25 loans tested lacked a signed promissory note, and 24 of 25 loans lacked adequate repayment documentation. Management Response / Corrective Action Plan: Management concurs with this finding. The University has directed the engaged consulting firm to complete a full inventory of the remaining Perkins Loan portfolio, working with the loan servicer to reconstruct or obtain missing promissory notes and repayment records wherever possible, and to document the resolution status of each loan file. Administrative staff previously responsible for maintaining this documentation are no longer employed at the institution. Because the Perkins Loan program is in wind-down status and documentation gaps largely predate the current administration, full file reconstruction may extend beyond the current award year; the University will report progress to the Department of Education as file remediation continues. Responsible Party - Ebony Martin, Associate Director of Student Accounts Title - Interim oversight: Engaged Consulting Firm Anticipated Completion Date - August 24, 2026 Note: Because the corrective actions described above were substantially implemented during and after the fiscal year 2025 audit period, management anticipates that this condition, or elements of it, may continue to be identified as a finding in the University's fiscal year 2025-2026 single audit. Full operating effectiveness of the revised controls will not be demonstrable until they have been in place for a complete testing cycle.

View Audit 409430

Finding 1227187 (2025-001)

Material Weakness 2025

Harmony Community Development Corporation, Inc.

TX

Matching / Level of Effort / Earmarking

Harmony Community Development Corporation will implement a formal monthly grant compliance review process for all HUD Continuum of Care grants. The purpose of this process is to ensure the required matching funds are identified, documented, reviewed, and maintained throughout the grant period. Begin...

Harmony Community Development Corporation will implement a formal monthly grant compliance review process for all HUD Continuum of Care grants. The purpose of this process is to ensure the required matching funds are identified, documented, reviewed, and maintained throughout the grant period. Beginning immediately, Finance, Program, and Compliance staff will conduct monthly reviews to: • Monitor required HUD matching funds and maintaining supporting documentation. • Reconcile eligible matching support to grant activity and supporting records. • Monitor cumulative administrative costs to ensure compliance with the 10% administrative cost limitation. • Maintain a centralized electronic grant file containing match documentation, payroll support, service documentation, administrative cost calculations, and monthly review approvals. • Report compliance with exceptions to Executive Leadership for timely resolution. This monthly review process will remain in place throughout the grant period and will be incorporated into Harmony's ongoing grant compliance procedures. Person Responsible for Corrective Action Plan: Mark Porter, Executive Director Departments Responsible: Finance, Compliance, and Program Leadership Anticipated Date of Completion: Implemented immediately and monitored monthly throughout the grant period.

View Audit 409354

Finding 1227152 (2025-001)

Material Weakness 2025

Senior Citizens Housing Development Corporation of Mt. Lebanon

FL

Cash Management HUD Housing Programs Reporting

Oversight Agency for Audit, Senior Citizens Housing Development Corporation of Mt. Lebanon, Inc., respectfully submits the following corrective action plan for the year ended December 31, 2025. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive,...

Oversight Agency for Audit, Senior Citizens Housing Development Corporation of Mt. Lebanon, Inc., respectfully submits the following corrective action plan for the year ended December 31, 2025. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 201, Coral Springs, Florida 33067. Audit period: January 1, 2025 through 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 numbers in the schedule. SECTION III - FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT FINDING No. 2025-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Recommendation: The Project should implement procedures to monitor the expiration of all contracts to ensure timely preparation and approval. Additionally, the Project should obtain reimbursement for any amounts paid subsequent to the expiration of form HUD-9839-B. Action Taken: Management is in the process of renewing all management certifications and will provide the accountant extra training to monitor and not charge fees for expired certifications. If the Oversight Agency for Audit has questions regarding the plan, please call Irene Phillips at 954-835-9200. Sincerely yours, Irene Phillips, CFO

View Audit 409319

Finding 1227151 (2025-002)

Material Weakness 2025

Beaumont Cherry Valley Water District

CA

Internal Control / Segregation of Duties Reporting Significant Deficiency § 200.303 § 200.328

The District concurs with the finding. Although the District's review process identified corrections, the process did not require a final verification that all reviewer comments had been incorporated into the version submitted. The District will take the following actions: 1. Require the preparer to...

The District concurs with the finding. Although the District's review process identified corrections, the process did not require a final verification that all reviewer comments had been incorporated into the version submitted. The District will take the following actions: 1. Require the preparer to reconcile reported expenditures to the general ledger, reimbursement requests or invoices, and relevant project records before submitting the report for review. The reconciliation will be retained with the report. 2. Use a version-controlled Quarterly Report Review Checklist and corrections log that identifies each reviewer comment, the required correction, the preparer's disposition, and the date completed. 3. Require the preparer to certify that all review comments have been resolved and incorporated into the final report. 4. Require the independent reviewer to perform and document a final comparison of the approved report to the reconciliation and corrections log. No report may be submitted until the reviewer has marked the final version 'Approved for Submission.' 5. Retain the signed checklist, reconciliation, corrections log, approved final report, and proof of submission. The Finance Manager will periodically review grant-reporting files to verify that the control is operating as designed. Person Responsible for Corrective Action: William Clayton, Finance Manager Anticipated Completion Date for Corrective Action: September 30, 2026. Final reviewer approval and document-retention controls will be effective immediately, with the revised checklist, written procedures, and staff training completed by this date.

View Audit 409318

Finding 1227127 (2025-012)

Material Weakness 2025

City of Manchester, Nh

NH

Reporting Material Weakness Matching / Level of Effort / Earmarking § 200.303

2025-012 Coronavirus State and Local Fiscal Recovery Funds - Assistance Listing Number 21.027 Recommendation: We recommend that the City strengthen its internal controls over Federal Financial reporting by developing and implementing written procedures requiring all cumulative expenditure line items...

2025-012 Coronavirus State and Local Fiscal Recovery Funds - Assistance Listing Number 21.027 Recommendation: We recommend that the City strengthen its internal controls over Federal Financial reporting by developing and implementing written procedures requiring all cumulative expenditure line items reported in the Project and Expenditure Reports to be reconciled to underlying accounting records prior to submission. The procedures should also require retention of a point-in-time support package for each report, including the source reports, reconciliations, explanations for adjustments, evidence of supervisory review, and documentation of report certification. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding:  CIP identified this deficiency in FY26. Since then, the Financial Analyst now saves all Project Reports in relation to the Quarterly Report in the appropriate reconciliation files when completing a reconciliation. This process is being followed as reconciliations are being completed monthly and quarterly, and being signed off on by all appropriate individuals. Name(s) of the contact person(s) responsible for corrective action:  Chelcie Pinsonneault, Community Grants Manager Planned completion date for corrective action plan:  Planning and Community Development has already completed this corrective action.

View Audit 409307

Finding 1227107 (2025-008)

Material Weakness 2025

City of Manchester, Nh

NH

Special Tests & Provisions HUD Housing Programs Significant Deficiency § 200.303

2025-008 Community Development Block Grants/Entitlement Grants - Assistance Listing Number 14.218 Recommendation: We recommend the City strengthen procedures and internal controls to ensure that environmental review certifications are prepared and retained, evidencing that the environmental reviews ...

2025-008 Community Development Block Grants/Entitlement Grants - Assistance Listing Number 14.218 Recommendation: We recommend the City strengthen procedures and internal controls to ensure that environmental review certifications are prepared and retained, evidencing that the environmental reviews were completed. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding:  CIP will update the Environmental Review section of the CIP Procedures Manual to ensure Environmental Reviews are completed and documentation is kept on file. Additionally a SOP will also be created for how to conduct an Environmental Review. Name(s) of the contact person(s) responsible for corrective action:  Chelcie Pinsonneault, Community Grants Manager Planned completion date for corrective action plan:  Planning and Community Development will ensure the implementation of this corrective action plan is completed by October 31, 2026

View Audit 409307

Finding 1227106 (2025-007)

Material Weakness 2025

City of Manchester, Nh

NH

Reporting Procurement, Suspension & Debarment Subrecipient Monitoring § 200.303

2025-007 Community Development Block Grants/Entitlement Grants - Assistance Listing Number 14.218 Recommendation: We recommend the City strengthen procedures and internal controls to ensure that all required subawards are reported timely and accurately no later than the end of the month following th...

2025-007 Community Development Block Grants/Entitlement Grants - Assistance Listing Number 14.218 Recommendation: We recommend the City strengthen procedures and internal controls to ensure that all required subawards are reported timely and accurately no later than the end of the month following the month of issuance of each subaward. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding:  Planning and Community Development’s Community Improvement Program (CIP) will update the CIP Procedures Manual to ensure that FFATA reporting is identified as a required step when providing subawards. Additionally, a Standard Operating Procedure (SOP) will be created on how, when and why to complete FFATA reporting, who will be responsible, and how we will ensure the required reporting is completed. Name(s) of the contact person(s) responsible for corrective action:  Chelcie Pinsonneault, Community Grants Manager Planned completion date for corrective action plan:  Planning and Community Development will ensure the implementation of this corrective action plan is completed by October 31, 2026.

View Audit 409307

Finding 1227086 (2025-003)

Material Weakness 2025

City of Poplar Bluff

MO

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

Name of Contact Person: Lori Phelps, City Clerk/Treasurer and Acting City Manager. Recommendation: We recommend that the City check the Excluded Parties List System or collect certification from the entity for any vendor in which the City expects to spend more than $25,000 of federal grant funds for...

Name of Contact Person: Lori Phelps, City Clerk/Treasurer and Acting City Manager. Recommendation: We recommend that the City check the Excluded Parties List System or collect certification from the entity for any vendor in which the City expects to spend more than $25,000 of federal grant funds for the year. Corrective Action: We will ensure we comply going forward. Proposed Completion Date: Immediately.

View Audit 409271

Finding 1227051 (2025-005)

Material Weakness 2025

Harvard Townhouse, Inc.

NE

Allowable Costs / Cost Principles Material Weakness Matching / Level of Effort / Earmarking

Finding 2025-004 See response to finding 2025-001.

View Audit 409230

Finding 1227050 (2025-004)

Material Weakness 2025

Harvard Townhouse, Inc.

NE

Special Tests & Provisions Material Weakness Matching / Level of Effort / Earmarking

Finding 2025-004 Management of the project is actively working to reinsure the Project in compliance with 7 CFR 3560.105(h). Management is also actively reviewing Its internal control policies and procedures to mitigate the risk of noncompliance in the future.

View Audit 409230

Finding 1227045 (2025-002)

Material Weakness 2025

County of Madison, New York

NY

Subrecipient Monitoring Reporting Matching / Level of Effort / Earmarking

Corrective Action Plan for Finding 2025-002 U.S Department of Agriculture Rural Broadband Access Loans (AL# 10.886) Criteria: Quarterly financial reports are required to be submitted to the United State Department of Agriculture no more than 30 days after the end of the quarter. Internal controls sh...

Corrective Action Plan for Finding 2025-002 U.S Department of Agriculture Rural Broadband Access Loans (AL# 10.886) Criteria: Quarterly financial reports are required to be submitted to the United State Department of Agriculture no more than 30 days after the end of the quarter. Internal controls should provide reasonable assurance of compliance with reporting requirements of the Rural Broadband Access Loans program. Cause/Condition: Quarterly reports for all 4 quarters of the year under audit were not submitted timely. Effect: The County was not in compliance with the reporting requirements of the Rural Broadband Access Loans program. Perspective Information: We tested all 4 quarterly financial reports due relating to the fiscal year ending December 31, 2025. All 4 quarterly reports were submitted late, subsequent to 30 days after quarter end. Questioned Costs: None noted. Recommendation: We recommend the County design and implement internal controls over compliance to ensure that all reports required under the Uniform Guidance are submitted to the appropriate government agency timely. Documentation to support the effectiveness of the controls should be retained. Management’s Response: Management agrees with the finding and recommendation. To address this issue, we will implement procedures to better monitor reporting deadlines and assign responsibility for preparing, reviewing, and submitting required reports. We will also maintain documentation to verify reports are completed and submitted timely. These improvements will help ensure compliance with the reporting requirements of the Rural Broadband Access Loans program going forward. Corrective Action Plan for Finding 2025-002 (Continued) Expected Completion: December 31, 2026 Responsible Official: Lou Anne Randall, Director of Finance

View Audit 409213

Finding 1226975 (2025-004)

Material Weakness 2025

Winner Regional Healthcare Center

SD

Special Tests & Provisions Questioned Costs Significant Deficiency

Federal Agency Name: United States Department of Agriculture Program Name: Community Facilities Loans and Grants FFAL #10.766 Finding Summary: For eight of the twelve months, the Center did not document an independent review of the monthly reserve fund account balance as compared to the required min...

Federal Agency Name: United States Department of Agriculture Program Name: Community Facilities Loans and Grants FFAL #10.766 Finding Summary: For eight of the twelve months, the Center did not document an independent review of the monthly reserve fund account balance as compared to the required minimum balance. Corrective Action Plan: Effective September 2025, the balance of the reserve account, minimum required reserve balance and compliance of the reserve was presented to the board with formal documentation of review and approval being retained. Responsible Individuals: Mari Chambers, Chief Finance Officer Anticipated Completion Date: October 2025

View Audit 409157

Finding 1226441 (2025-003)

Material Weakness 2025

City of Clarksville

TX

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303 § 200.512

The City of Clarksville, Texas agrees with this repeated finding, which corresponds to prior-year Finding 2024-003 and remains open. Management will maintain an audit and federal-reporting calendar that identifies the Federal Audit Clearinghouse submission deadline as the earlier of 30 calendar days...

The City of Clarksville, Texas agrees with this repeated finding, which corresponds to prior-year Finding 2024-003 and remains open. Management will maintain an audit and federal-reporting calendar that identifies the Federal Audit Clearinghouse submission deadline as the earlier of 30 calendar days after receipt of the auditor’s report or nine months after fiscal year-end. The Mayor and designated accounting personnel will assign responsibility for audit coordination and FAC submission, close the accounting records timely, promptly provide requested records, monitor unresolved audit items, and coordinate with the auditor throughout the audit cycle. Management will document the person responsible for submitting the reporting package and notifying the pass-through agency, as applicable. Evidence of FAC submission and acceptance, agency notification, and related correspondence will be retained in the federal-award compliance files. These procedures are intended to improve financial-record readiness, governance continuity, and timely completion and submission of the Single Audit reporting package

View Audit 409058

Finding 1226423 (2025-005)

Material Weakness 2025

City of North Miami Beach

FL

Reporting Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.512

SD 2025-005 REPORTING - DATA COLLECTION FORM (REPEAT FINDING PREVIOUSLY REPORTED AS - SD2024-005) Current Year Corrective Actio1t Response: Management concurs with the findings . Management will implement policie s and procedures as per the auditor' s recommendation.

View Audit 409026

Finding 1226400 (2025-006)

Material Weakness 2025

Council Bluffs Community School District

IA

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

Finding Summary – During the audit, it was determined that an employee used a District purchasing card to make unauthorized personal purchases that were subsequently charged to the Twenty-First Century Community Learning Centers federal program. Existing monitoring and approval procedures did not id...

Finding Summary – During the audit, it was determined that an employee used a District purchasing card to make unauthorized personal purchases that were subsequently charged to the Twenty-First Century Community Learning Centers federal program. Existing monitoring and approval procedures did not identify the improper expenditures. As a result, approximately $7,000 of unallowable costs were charged to the federal award, resulting in a significant deficiency in internal control over compliance related to allowable costs and cost principles. Contact Person Responsible for Corrective Action – Dr. Chace Ramey, Superintendent Corrective Actions Planned – The District has implemented additional review and monitoring procedures over purchasing card transactions and federal program expenditures. Supporting documentation is reviewed to ensure expenditures are allowable, properly approved, and directly related to program purposes. District administration will continue to monitor compliance with federal requirements to reduce the risk of unallowable costs being charged to federal awards. Anticipated Completion Date of Corrective Action Plan – June 30, 2026.

View Audit 408984

Finding 1226313 (2025-004)

Material Weakness 2025

Sangamon County, Illinois

IL

Cash Management Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

County department personnel changes have been implemented which address this deficiency. Additional training from the Auditor’s office and state grantors has occurred and will continue for staff in departments that receive federal and state awards.

View Audit 408963

Finding 1226312 (2025-005)

Material Weakness 2025

Sangamon County, Illinois

IL

Questioned Costs Reporting Significant Deficiency § 200.303

County department personnel changes have been implemented which address this deficiency. Additional training from the Auditor’s office and state grantors has occurred and will continue for staff in departments that receive federal and state awards.

View Audit 408963

Finding 1226310 (2025-003)

Material Weakness 2025

Sangamon County, Illinois

IL

Questioned Costs Period of Performance Significant Deficiency § 200.303

County department personnel changes have been implemented which address this deficiency. Additional training from the Auditor’s office and state grantors has occurred and will continue for staff in departments that receive federal and state awards.

View Audit 408963

Finding 1226292 (2025-006)

Material Weakness 2025

City of Blackduck

MN

Questioned Costs Subrecipient Monitoring Material Weakness

Recommendation: We recommend that the City implement controls over USDA reports to ensure that they are reviewed prior to submission. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The City will work to ensure t...

Recommendation: We recommend that the City implement controls over USDA reports to ensure that they are reviewed prior to submission. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The City will work to ensure that the management reports are reviewed prior to submission. Name of the contact person responsible for corrective action: Christina Regas, City Administrator Planned completion date for corrective action plan: December 31, 2026.

View Audit 408960

Finding 1226288 (2025-001)

Material Weakness 2025

City of Greensburg

IN

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

FINDING 2025-001 Finding Subject: COVID-19 Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Amy Borns Contact Phone Number and Email Address: 812-663-8582 ext 1 & aborns@greensburg.in.gov Views of Responsible Officials: We concur with th...

FINDING 2025-001 Finding Subject: COVID-19 Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Amy Borns Contact Phone Number and Email Address: 812-663-8582 ext 1 & aborns@greensburg.in.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: When the SLFRF Compliance report is completed by the Clerk-Treasurer, either the Accounts Payable/Receivable Specialist or the Personnel Administrator will double check it and sign off (or send an email) concurring with the report. Anticipated Completion Date: This will be completed no later than April 30, 2027.

View Audit 408956

Finding 1226249 (2025-001)

Material Weakness 2025

American Physical Society

MD

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking Questioned Costs § 200.303 § 200.403

Finding Number: 2025-001 Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Corrective Action Plan In March 2026, following the recognition of the issue, APS immediately conducted a comprehensive review of all payroll related charges, and promptly corrected t...

Finding Number: 2025-001 Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Corrective Action Plan In March 2026, following the recognition of the issue, APS immediately conducted a comprehensive review of all payroll related charges, and promptly corrected the accounting records and updated the SEFA to remove all duplicated costs. In response to this finding, APS implemented additional policies, procedures, and controls to strengthen oversight of payroll processing and grant expenditure reporting. Specifically, APS established a documented review process to identify and investigate duplicate payroll postings prior to and following the upload of payroll data to the general ledger and grant accounting records. In addition, APS enhanced its system change management procedures to ensure that future modifications or upgrades to payroll and grants management systems include validation testing of key controls before implementation. APS will continue to review payroll charges and grant expenditures regularly and maintain documentation of all review and reconciliation activities to ensure costs charged to federal awards are accurate, allowable, properly supported, and recorded only once. APS implemented the corrective action plan on April 30, 2026. Management's contact responsible for the implementation of the Corrective Action Plan: Name: Jane Hopkins Gould Position: Chief Financial & Operating Officer Telephone number: 301-209-3276

View Audit 408898

Finding 1226244 (2025-002)

Material Weakness 2025

American Physical Society

MD

Subrecipient Monitoring Matching / Level of Effort / Earmarking § 200.303

Finding Number: 2025-002 Compliance Requirement: Subrecipient Monitoring Corrective Action Plan APS acknowledges the finding and has reviewed its procedures related to NSF prior-approval requirements for post-award subawards. In the instances identified, the subawards were not identified at the prop...

Finding Number: 2025-002 Compliance Requirement: Subrecipient Monitoring Corrective Action Plan APS acknowledges the finding and has reviewed its procedures related to NSF prior-approval requirements for post-award subawards. In the instances identified, the subawards were not identified at the proposal stage and arose after the NSF award had already been issued. APS notes that the NSF Proposal and Award Policies and Procedures Guide (PAPPG) does not explicitly state that grantees must obtain separate prior written approval for post-award subawards that were not identified in the original proposal. As a result, APS personnel did not recognize that additional NSF authorization was required under these circumstances. APS has strengthened its grant administration procedures to ensure compliance with sponsor requirements. APS has implemented additional review procedures requiring grant administration personnel and Principal Investigators to assess prior-approval requirements before executing any post-award subaward. APS will document this review and, when required, obtain and retain written sponsor authorization prior to issuing a subaward. In addition, APS has enhanced training for grants management personnel regarding NSF award administration requirements and will maintain documentation evidencing compliance with all applicable prior-approval requirements. APS will continue to monitor subaward activity throughout the life of each award to ensure that sponsor approvals are obtained and retained timely and that all federal award requirements are met. APS will implement the corrective action plan on August 31, 2026. Management's contact responsible for the implementation of the Corrective Action Plan: Name: Jane Hopkins Gould Position: Chief Financial & Operating Officer Telephone number: 301-209-3276

View Audit 408898

Corrective Action Plans

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