Corrective Action Plans

Finding 1238716 (2025-002)

Material Weakness 2025

Detroit Health Care for the Homeless Dba Advantage Health Centers

MI

Cash Management Matching / Level of Effort / Earmarking § 200.305

Management acknowledges the finding related to the timing of federal cash drawdowns. The January 2025 drawdowns occurred during a period of significant uncertainty regarding federal funding and potential changes in federal funding availability. Based upon guidance and recommendations received from t...

Management acknowledges the finding related to the timing of federal cash drawdowns. The January 2025 drawdowns occurred during a period of significant uncertainty regarding federal funding and potential changes in federal funding availability. Based upon guidance and recommendations received from the Michigan Primary Care Association during this period, the Organization drew available federal funding to mitigate the potential risk of disruption in access to awarded funds. This action was specific to the circumstances and federal funding environment that existed during 2025 and was not the Organization's standard cash management practice. Management recognizes the importance of ensuring that federal drawdowns are aligned with immediate cash requirements and applicable federal cash management requirements. The Organization has subsequently strengthened its federal drawdown procedures. Grant drawdowns are reconciled to eligible expenditures and the general ledger, supporting documentation is maintained electronically, and additional management review has been incorporated into the process. The Chief Financial Officer will continue monitoring federal cash management procedures to ensure future drawdowns are appropriately supported, documented, and timed in accordance with applicable federal requirements.

View Audit 413645

Finding 1238715 (2025-001)

Material Weakness 2025

Oregon Child Development Coalition, Inc.

OR

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

OCDC has implemented the following corrective actions: 1. Implement a secondary review control Eligibility determinations will include documented evidence of review, such as reviewer name/initials and date, to demonstrate that eligibility has been verified prior to or as part of the applicable claim...

OCDC has implemented the following corrective actions: 1. Implement a secondary review control Eligibility determinations will include documented evidence of review, such as reviewer name/initials and date, to demonstrate that eligibility has been verified prior to or as part of the applicable claiming process. 2. Reinforce Staff Training and Procedures Staff responsible for determining, reviewing, or maintaining CACFP eligibility will receive a refresher training on the procedures, documentation requirements, review responsibilities, and record retention expectations. 3. Conduct periodic monitoring Program leadership will periodically review a sample of eligibility files to confirm that required documentation is present, eligibility determinations are supported, and evidence of review is documented. Identified exceptions will be corrected promptly and recurring issues addressed through additional training or process improvements. Name(s) of the contact people responsible for correction action: Melissa Buxton, Chief Financial Officer and CACFP Program Leadership Plan completion date for corrective action plan: Corrective actions began in spring 2026 after OCDC self-identified the weakness. Initial corrective measures have been implemented, with periodic monitoring continuing as an ongoing internal control with training reinforcement completed by October 31, 2026.

View Audit 413641

Finding 1238701 (2025-002)

Material Weakness 2025

Housing Authority of Kansas City, Missouri

MO

HUD Housing Programs Reporting Significant Deficiency

Housing Voucher Cluster -Assistance Listing No. No. 14.871 and 14.879 Recommendation: We recommend that the Authority implements controls to ensure HUD-50058 recertifications are uploaded to PIC. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action ...

Housing Voucher Cluster -Assistance Listing No. No. 14.871 and 14.879 Recommendation: We recommend that the Authority implements controls to ensure HUD-50058 recertifications are uploaded to PIC. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: HAKC has implemented additional controls to ensure HUD-50058 forms are submitted timely and accurately to HUD's designated reporting system. The HCV Department is monitoring HUD-50058 submissions through available PIC reporting and error reports. Staff are responsible for reviewing submission results and correcting fatal errors or rejected certifications. Supervisory staff will monitor outstanding certifications and submission errors to ensure corrections are completed and successfully transmitted. HAKC has also incorporated the following controls: • Monitoring of HUD-50058 submission status; • Review of PIC error reports and correction of fatal errors; • Monitoring of overdue annual reexaminations and certifications that have not been successfully posted; • Supervisory review of outstanding 50058 submissions; • Periodic reconciliation of HAKC participant records against HUD reporting records; and • Staff training regarding HUD-50058 reporting requirements and the importance of complete, accurate, and timely submissions. HAKC recognizes that HUD requires PHAs to electronically submit HUD-50058 information and that complete, accurate, and timely reporting is necessary for HUD program monitoring. HAKC will continue to monitor 50058 submission activity and error reports as part of its ongoing quality-control process. Name(s) of the contact person(s) responsible tor corrective action: Director of HCV, Assistant Directors of HCV, HCV Staff, and Compliance Team Planned completion date for corrective action plan: 12/31/2026\

View Audit 413629

Finding 1238663 (2025-002)

Material Weakness 2025

NATIONAL PRESERVATION INSTITUTE

VA

Reporting Significant Deficiency Matching / Level of Effort / Earmarking § 200.328

The National Preservation Institute acknowledges the finding related to the untimely submission of required Federal reports. The reporting delay was not the result of a failure to perform the underlying activities or maintain the information necessary to complete the report, but rather a breakdown i...

The National Preservation Institute acknowledges the finding related to the untimely submission of required Federal reports. The reporting delay was not the result of a failure to perform the underlying activities or maintain the information necessary to complete the report, but rather a breakdown in the process for monitoring and tracking reporting deadlines. Management has reviewed its reporting processes and implemented additional oversight procedures to ensure reporting deadlines are identified, monitored, and communicated on a timely basis. A centralized compliance calendar will be established to track all Federal reporting requirements and due dates, and responsibility for monitoring reporting deadlines has been assigned to the National Preservation Institute’s Executive Director. The Executive Director will periodically review reporting requirements throughout the year to ensure that reports are submitted within required timeframes. Management believes these actions will strengthen compliance with Federal reporting requirements and reduce the likelihood of future late submissions.

View Audit 413589

Finding 1238662 (2025-001)

Material Weakness 2025

NATIONAL PRESERVATION INSTITUTE

VA

Procurement, Suspension & Debarment Subrecipient Monitoring Significant Deficiency § 200.317 § 200.318 § 200.327

The National Preservation Institute acknowledges the finding related to procurement documentation. While the National Preservation Institute believes its procurement activities were conducted in a manner consistent with Federal requirements, certain documentation necessary to demonstrate compliance ...

The National Preservation Institute acknowledges the finding related to procurement documentation. While the National Preservation Institute believes its procurement activities were conducted in a manner consistent with Federal requirements, certain documentation necessary to demonstrate compliance was not retained in a manner that readily supported the procurement decisions. Management has reviewed the circumstances surrounding the finding and has reinforced expectations regarding procurement documentation, record retention, and compliance with Federal procurement requirements. Going forward, procurement files associated with federally funded activities will be reviewed to ensure that all required supporting documentation is generated and retained, including documentation supporting the basis for contractor selection, cost or price analyses, procurement method, and any other records required by Uniform Guidance. In addition, the National Preservation Institute will formally adopt a procurement policy designed to align with the procurement standards contained in Uniform Guidance, including requirements related to competition, conflict of interest, documentation, contractor selection, and procurement record retention. Management believes that the combination of a formal procurement policy and enhanced review procedures will strengthen compliance with Federal procurement requirements and ensure that procurement files contain sufficient documentation to support future monitoring, audit, and reporting requests.

View Audit 413589

Finding 1238615 (2025-001)

Material Weakness 2025

Knox County

IN

Internal Control / Segregation of Duties Material Weakness Period of Performance § 200.1 § 200.303

FINDING 2025-001 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Lisa Clark/Benock Contact Phone Number and Email Address: 812-885-2502 lcbenock@knoxcounty.in.gov Views of Responsible for Corrective Action: W...

FINDING 2025-001 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Lisa Clark/Benock Contact Phone Number and Email Address: 812-885-2502 lcbenock@knoxcounty.in.gov Views of Responsible for Corrective Action: We concur with the finding. Description of Corrective Action Plan: The annual reporting for fund 8950 – Coronavirus State and Local Fiscal Recovery Funds with the Treasury shall be reviewed by an independent accountant to verify that all the information is correct and reported per reporting compliance guidelines. In addition, the County Auditor will review the expenditures agree with the ledger. Anticipated Completion Date: April 30, 2027, the due date of the next annual reporting in 2027

View Audit 413513

Finding 1238590 (2025-002)

Material Weakness 2025

Connections to Success

MO

Cash Management Reporting Significant Deficiency § 200.303

Type of Finding: Significant Deficiency in Internal Control Over Compliance – Cash Management and Reporting Recommendation: The Organization should formalize and consistently apply its review and approval controls over drawdown requests and grant reports. Management should review all submissions pri...

Type of Finding: Significant Deficiency in Internal Control Over Compliance – Cash Management and Reporting Recommendation: The Organization should formalize and consistently apply its review and approval controls over drawdown requests and grant reports. Management should review all submissions prior to filing and maintain documentation evidencing the review and approval performed. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: This finding is a repeat of prior-year finding 2024-002. The Organization implemented its documented review and approval process over federal drawdown requests in September 2025. As noted in the finding, the two drawdown requests without documented review were submitted prior to that implementation, and the remaining drawdown requests tested included documented review and approval. Building on the corrective action plan submitted for fiscal year 2024, the Organization has taken the following corrective actions: ● Beginning in September 2025, the Organization implemented a documented two-level review and approval process for all federal drawdown requests. The preparer compiles the supporting documentation, and the Operations Director reviews the request and provides written approval prior to submission. ● Documented management review and approval has been extended to ETA-9130 financial reports, which are reviewed and approved by the Operations Director prior to filing. ● The Organization's Cash Management Policy was formally updated, effective March 3, 2026, as part of the corrective action plan submitted to and approved by the U.S. Department of Labor. The policy requires written management approval prior to submission of any drawdown request, documented management review of ETA-9130 financial reports prior to filing, and retention of all approval evidence in the electronic grant file, memorializing the drawdown review procedures in practice since September 2025. ● No drawdown request or financial report is submitted until the Operations Director's written approval has been received and saved to the electronic grant file, so evidence of review and approval is retained for every submission. ● The Operations Director will conduct quarterly internal reviews to ensure this process is being followed. The drawdown review and approval process has been in practice since September 2025, and the review and approval requirements for drawdown requests and financial reports were formally documented in policy effective March 3, 2026. These controls continue to be monitored on an ongoing basis to prevent recurrence. Name(s) of contact person(s) responsible for corrective action: Cory Finley, Operations Director, with oversight by Brandi Jahnke, Chief Executive Officer Planned completion date for corrective action plan: Drawdown review and approval implemented in practice as of September 2025; review and approval requirements formalized in written policy effective March 3, 2026. The Operations Director will conduct quarterly internal reviews on an ongoing basis. If the U.S. Department of Labor has questions regarding this plan, please call Brandi Jahnke at (816) 520-4404.

View Audit 413441

Finding 1238586 (2025-002)

Material Weakness 2025

Lake County

IN

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Material Weakness § 200.1 § 200.303

FINDING 2025-002 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Burzynski Thaddeus Contact Phone Number and Email Address: 219-755-3200, burzytx@lakecountyin.org Views of Responsible Officials: We concur wit...

FINDING 2025-002 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Burzynski Thaddeus Contact Phone Number and Email Address: 219-755-3200, burzytx@lakecountyin.org Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The County filed each quarterly report with the federal government through the ARPA reporting portal every quarter and made sure it balanced. The County will develop and implement a proper system of internal controls and segregation of duties where a County employee verifies the work performed by the consultant. This will ensure accuracy and correctness of all quarterly P & E Reports. Anticipated Completion Date: December 31, 2026

View Audit 413437

Finding 1238521 (2025-002)

Material Weakness 2025

City of Richmond

IN

Matching / Level of Effort / Earmarking Procurement, Suspension & Debarment Material Weakness § 200.303 § 200.339

FINDING 2025-002 Finding Subject: Economic Development Cluster - Reporting Contact Person Responsible for Corrective Action: Tracy McGinnis Contact Phone Number and Email Address: tmcginnis@richmondindiana.gov 765-983-7222 Views of Responsible Officials: We concur with the finding. Description of Co...

FINDING 2025-002 Finding Subject: Economic Development Cluster - Reporting Contact Person Responsible for Corrective Action: Tracy McGinnis Contact Phone Number and Email Address: tmcginnis@richmondindiana.gov 765-983-7222 Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Management will ensure that the preparation and review internal controls process has been changed will be followed and thoroughly documented to detect and prevent material misstatements to the Revolving Loan Fund (RLF) reports. Anticipated Completion Date: The Controller and Deputy Controller and will review all current and past due reports and uploads to the appropriate site. The corrective action will take place immediately (Sept 2026). Note: the monthly reports are completed with each monthly receipts and closeouts and future reporting of the ED-209 will be processed and uploaded by the Deputy Controller bi-annually.

View Audit 413403

Finding 1238505 (2025-003)

Material Weakness 2025

Housing Authority of Trempealeau County

WI

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

Eligibility – Lack of Internal Controls Comments on findings and recommendations The organization concurs with the finding and the auditor’s recommendation. We agree that implementing an independent review process will strengthen accuracy and compliance with Rural Development requirements. Actions t...

Eligibility – Lack of Internal Controls Comments on findings and recommendations The organization concurs with the finding and the auditor’s recommendation. We agree that implementing an independent review process will strengthen accuracy and compliance with Rural Development requirements. Actions taken or planned The organization will assign preparation and review of RD Form 3560-8 and HUD Form 50058 to different staff members. Anticipated completion date September 30, 2026

View Audit 413381

Finding 1238350 (2025-004)

Material Weakness 2025

Affordable Housing Developers, Inc.

ND

Special Tests & Provisions Matching / Level of Effort / Earmarking

Special Tests and Provisions: Debt Service Reserve Requirements Criteria The USDA requires AHDI to establish a debt service reserve account and deposit a minimum amount annually until the required reserve balance for the specific USDA loan is met. These funds are restricted for the purpose of ensuri...

Special Tests and Provisions: Debt Service Reserve Requirements Criteria The USDA requires AHDI to establish a debt service reserve account and deposit a minimum amount annually until the required reserve balance for the specific USDA loan is met. These funds are restricted for the purpose of ensuring timely debt repayment and emergency repairs. Condition During our audit procedures, we noted that one restricted debt service reserve account was underfunded by $497 as of the fiscal year-end. Cause AHDI failed to adjust its monthly transfer accordingly to the annual reserve requirement increase. This resulted in an annual net contribution below the required threshold for the year. Effect AHDI was in technical non-compliance with its loan covenants with the USDA Rural Development office. Questioned Costs None. Recommendation We recommend that management review monthly transfers calculation to ensure that the monthly transfers will meet the annual required contribution. Views of Responsible Officials Management agrees with the finding and is aware it will continue to remain a finding.

View Audit 413185

Finding 1238340 (2025-003)

Material Weakness 2025

Bronx Community Health Network, Inc.

NY

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

Bronx Community Health Network, Inc. (“BCHN”) Corrective Action Plan For the Year Ended December 31, 2025 Health Resources and Services Administration (“HRSA”) Federal Award Finding Finding 2025-003 – Reporting Description of Finding: There was no evidence of the review and approval of the Uniform D...

Bronx Community Health Network, Inc. (“BCHN”) Corrective Action Plan For the Year Ended December 31, 2025 Health Resources and Services Administration (“HRSA”) Federal Award Finding Finding 2025-003 – Reporting Description of Finding: There was no evidence of the review and approval of the Uniform Data System (UDS) before its submission. Statement of Concurrence: We concur with the finding above. Corrective Action: Management has implemented a formal UDS review and approval process requiring management review and documented approval by the designated responsible official prior to submission. In this process, the CFO will email the draft UDS report to the CEO for review. Once the UDS is reviewed, the CEO will email the CFO approving the UDS report. Then the CFO will submit the report. Evidence of the review and approval will be maintained and retained with the final UDS submission documentation to ensure accuracy, completeness, and compliance with reporting requirements. Completion Date: 09/10/2026 Name of Contact Person: Alicia Tenny Chief Financial Officer Tel. No.: (917) 364-1156 E-mail: atenny@bchnhealth.org If HRSA has questions regarding this Corrective Action Plan, please call Alicia Tenny at (917) 364-1156. Sincerely yours, _________________________ Alicia Tenny Chief Financial Officer

View Audit 413181

Finding 1238299 (2025-004)

Material Weakness 2025

Marquette County

WI

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

Finding 2025-004 Repeat of Finding 2024-004 Program Federal Assistance Listing and Title: 93.778 Medicaid Cluster Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: 62, 284, 878, 560152, 560155 State Program ID Number and Title: 437.3561/3681 CW Children and Families S...

Finding 2025-004 Repeat of Finding 2024-004 Program Federal Assistance Listing and Title: 93.778 Medicaid Cluster Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: 62, 284, 878, 560152, 560155 State Program ID Number and Title: 437.3561/3681 CW Children and Families State Agency: Wisconsin Department of Children and Families State Program ID Number and Title: 435.560100 ADRC 435.000561/000681 Basic County Allocation State Agency: Wisconsin Department of Health Services State Program ID Number and Title: 395.168 Specialized Transit County Operating Aids (Elderly & Disabled) State Agency: Wisconsin Department of Transportation State Program ID Number and Title: 435.000283 IMAA State Share State Agency: Wisconsin Department of Health Services Award Numbers: Unknown Criteria: 2 CRF 200.303 Internal Controls requires that non-federal entities receiving federal awards establish and maintain internal control designed to reasonably ensure compliance with federal laws, regulations and program compliance requirements. The State Single Audit Guidelines (SSAG) require that local entities receiving State awards establish and maintain internal control designed to reasonably ensure compliance with laws, regulations and program compliance requirements. To minimize the risk of errors, internal controls should be in place for all program compliance requirements, including appropriate review and approval of expenditures. Condition/Context: During our testing, we were unable to view approval for the following number of payroll expenditures in each program: 93.778: 9 out of 19 expenditures tested. 435.000561/000681, 437.3561/3681: 12 out of 40 expenditures tested. 435.560100: 9 out of 19 expenditures tested. For programs 395.168 and 435.000283, these are carried over from the prior year as controls have not changed within the system. These samples were not statistically valid. Corrective Action Plan Corrective Action Planned: In response to Finding 2025-004 regarding Internal Control Over Financial Reporting, note that the County is aware that there is lack of coovnetrr iotsls y ear-end financial reporting process. The County will endeavor to evaluate the need to increase additional staff to meet the deficiencies noted in the finding. However, due to its size, the County does not feel it is cost-effective to hire the number of employees needed to complete these task in house at this point in time and will rely on an outside audit firm. Administration is aware the current payroll and financial system allows to only go back to view payroll approvals within one year. Name(s) of Contact Person(s) Responsible for Corrective Action: Ron Barger, Marquette County Administrator Anticipated Completion Date: Administration will examine the lack of internal financial reporting on a yearly ongoing basis.

View Audit 413169

Finding 1238297 (2025-005)

Material Weakness 2025

Marquette County

WI

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

Finding 2025-005 Repeat of Finding 2024-002 Program Federal Assistance Listing and Title: 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: Wisconsin Department of Health Services Award Numbers: Unkown ...

Finding 2025-005 Repeat of Finding 2024-002 Program Federal Assistance Listing and Title: 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: Wisconsin Department of Health Services Award Numbers: Unkown Criteria: Section The Uniform Guidance requires non-federal entities receiving federal awards to establish and maintain effective internal control designed to reasonably ensure compliance with federal statutes, regulations, and the terms and conditions of the federal award. To minimize the risk of errors, internal controls should be in place for all program compliance requirements, including the preparation and submission of reports. Reports should be reviewed and approved by a responsible party other than the original preparer, with documentation maintained to evidence the review and approval. Condition/Context: The County does not have controls in place to ensure there is documentation of the approval and review of reports prior to submission. For the current year single audit, the March and August monthly GEARS reports were selected for testing. For both reports tested, the County was unable to provide documentation evidencing review and approval by an individual other than the preparer prior to submission. The sample was not statistically valid. Corrective Action Plan Corrective Action Planned: The county is reviewing and updating its internal controls to put processes in place to ensure documentation of the review process prior to submittal of reports. Name(s) of Contact Person(s) Responsible for Corrective Action: Jayme Sopha, Health Director Anticipated Completion Date: 12/31/25

View Audit 413169

Finding 1238291 (2025-002)

Material Weakness 2025

St. Mary's Community Services

CA

Allowable Costs / Cost Principles Procurement, Suspension & Debarment Subrecipient Monitoring § 200.303

Condition The audit identified opportunities to strengthen documentation and monitoring controls related to federal grant compliance and Uniform Guidance requirements. Corrective Action Plan Management will enhance its federal awards compliance framework by implementing formal policies, assigning re...

Condition The audit identified opportunities to strengthen documentation and monitoring controls related to federal grant compliance and Uniform Guidance requirements. Corrective Action Plan Management will enhance its federal awards compliance framework by implementing formal policies, assigning responsibilities, improving monitoring procedures, and providing staff training. Actions include: • Develop and implement a Uniform Guidance Compliance Manual. • Update procurement policies to align with Uniform Guidance requirements. • Establish written policies for cash management, allowable costs, and federal grant documentation standards. • Develop and document a formal cost allocation methodology for shared program costs. • Assign and document federal award compliance responsibilities across accounting, grants management, and program staff. • Create a grant compliance monitoring checklist and implement quarterly documented compliance reviews. • Conduct Uniform Guidance training for accounting, grants, and program personnel. Responsible Official Chief Financial Officer and Grant Manager. Anticipated Completion Date October 31, 2026.

View Audit 413145

Finding 1238289 (2025-004)

Material Weakness 2025

Geisinger Health

PA

Allowable Costs / Cost Principles Reporting Subrecipient Monitoring § 200.303 § 200.403 § 200.406

Finding: The terms and conditions for recipients of Disaster Grants - Public Assistance (Presidentially Declared Disasters) require that federal funds be used only for eligible emergency protective measures and other eligible work. Emergency work is defined as work that must be performed immediately...

Finding: The terms and conditions for recipients of Disaster Grants - Public Assistance (Presidentially Declared Disasters) require that federal funds be used only for eligible emergency protective measures and other eligible work. Emergency work is defined as work that must be performed immediately to save lives, protect public health and safety, or avert or lessen the threat of a major disaster. Status: Management agrees with the finding and the following corrective actions were taken to minimize future risks. Management will continue to monitor FEMA guidance and determinations related to COVID-19 Public Assistance funding. Management will evaluate the impact of subsequent FEMA reviews or determinations on amounts reported on the SEFA and adjust, as appropriate. Contact Person: Erin Fitzgerald, VP Chief Accounting Officer Anticipated Completion Date: Q1 2026

View Audit 413143

Finding 1238178 (2025-001)

Material Weakness 2025

The George E. Brown United States-Mexico Foundation for Science

DC

Matching / Level of Effort / Earmarking

The Foundation pursued legal action because the way in which the IMPI withdrew from our agreement was found to be illegal. The Mexican court agreed with our position, and by the end of 2021, the Foundation had received a favorable resolution on the 2020 lawsuit. This led to initial meetings with IMP...

The Foundation pursued legal action because the way in which the IMPI withdrew from our agreement was found to be illegal. The Mexican court agreed with our position, and by the end of 2021, the Foundation had received a favorable resolution on the 2020 lawsuit. This led to initial meetings with IMPI's renewed top management, but unfortunately, we were unable to reset the funds. In June 2022, the Foundation formally requested that the IMPI reset the funds in order to continue functioning under the agreement, as a legally developed addendum had been created to supplement the original agreement. There were hectic changes in top management at the Mexican Ministry of Economy and the IMPI in 2022, resulting in unproductive efforts from previous negotiations. Then, in July 2023, the Foundation submitted a second lawsuit to enforce the one won in 2021, which was accepted by the court. On 13 September 2024, the Foundation was notified by the court of a favorable resolution regarding this second lawsuit. The IMPI still has one final opportunity to contest this resolution, although the probability of changing the outcome is minimal. Consequently, the Foundation's executives and its Board of Governors resumed communication with the IMPI's legal team to accelerate the resetting of the funds and the collaboration agreement. This was unsuccessful. Although the final ruling generally favored the Foundation, FUMEC filed a direct appeal for constitutional protection, claiming that the returns generated should not be limited to December 2022 but should instead be accumulated and calculated until IMPI actually made the payment; that is, until the month of 2024 in which IMPI complied with the ruling handed down on July 1, 2024. The court revoked the contested trial of July 1, 2024, and issued a new ruling, reiterating the considerations regarding the period and the amounts that IMPI is obliged to pay to FUMEC, in order to fully restore FUMEC's infringed subjective right. On September 8, 2025, a federal court issued a new ruling ordering the IMPI to do the following: 1. Within four months, return $5 million USD to FUMEC's endowment (matching funds). 2. Submit a financial expert report to determine the amount of accrued earnings that the IMPI must pay to FUMEC from August 2020 until the funds are returned. Between October 2025 and April 2026 (7 months), IMPI filed eight different appeals in an attempt to overturn the new ruling; all were rejected. However, IMPI succeeded in extending the deadline by four months to comply with the ruling. On May 20, the court certified that its ruling of September 8, 2025, had become definitive and informed IMPI that the four-month deadline to comply with the ruling will end on September 29, 2026; and that if IMPI fails to demonstrate compliance with the ruling within the granted period, the complaint procedure provided for by law will be initiated. Proposed completion date – 4Q2026. Contact person – Eugenio Marin, Executive Director

View Audit 413125

Finding 1238160 (2025-003)

Material Weakness 2025

TOWN OF WHEATLAND

IN

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Period of Performance § 200.303

Craig Jones, Town Clerk/Treasurer 400 E Adams St., Wheatland, Indiana, 47597 FINDING 2025-003 Finding Subject: Coronavirus State and Local Fiscal Recovery Funds - Internal Controls Contact Person Responsible for Corrective Action: Craig Jones Contact Phone Number and Email Address: (812) 321-2340, c...

Craig Jones, Town Clerk/Treasurer 400 E Adams St., Wheatland, Indiana, 47597 FINDING 2025-003 Finding Subject: Coronavirus State and Local Fiscal Recovery Funds - Internal Controls Contact Person Responsible for Corrective Action: Craig Jones Contact Phone Number and Email Address: (812) 321-2340, clerk@townofwheatland.in Views of Responsible Officials: We concur with the findings. Description of Corrective Action Plan: We understand the importance of internal controls over federal funds and for the future we will establish the following procedures for advanced grants. The board will be presented with a plan for expenditures of the grant and the clerk treasurer will account for the grant in a separate fund. Before payment is made the board will be presented with all invoices for review to ensure it meets all activities allowed, allowable costs/cost principles and period of performance. We will establish the following procedures for future reimbursable grants. The reimbursement request prepared by the clerk/treasurer office with supporting documentation will be reviewed by the Town Board for activities allowed, allowable costs/cost principles and period of performance. and approved for submission. Any reports required by grantor agency will be prepared by the clerk/treasures office and reviewed by the town board before submission Anticipated Completion Date: 08/2026

View Audit 413100

Finding 1238155 (2025-003)

Material Weakness 2025

City of Terre Haute

IN

Allowable Costs / Cost Principles Subrecipient Monitoring Material Weakness § 200.303 § 200.308 § 200.403

FINDING 2025-003 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – Period of Performance Contact Person Responsible for Corrective Action: Jessica Thome, Controller Contact Phone Number and Email Address: (812) 244-2360 and Jessica.Thome@terrehaute.in.gov Views of Respo...

FINDING 2025-003 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – Period of Performance Contact Person Responsible for Corrective Action: Jessica Thome, Controller Contact Phone Number and Email Address: (812) 244-2360 and Jessica.Thome@terrehaute.in.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The City will reclass the expense. Anticipated Completion Date: 10/31/2026

View Audit 413088

Finding 1238135 (2025-003)

Material Weakness 2025

City of Sylvania

OH

Allowable Costs / Cost Principles Period of Performance Reporting § 200.302 § 200.328 § 200.329

The reporting process for federal & state awarded funds will be reviewed with all parties involved in these funds.

View Audit 413033

Finding 1238124 (2025-004)

Material Weakness 2025

Crawford County

IN

Internal Control / Segregation of Duties Procurement, Suspension & Debarment Allowable Costs / Cost Principles § 200.1 § 200.303

FINDING 2025-004 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – Reporting Summary of Findings: Material Weakness, Modified Opinion The information submitted included amounts based on the incorrect period, amounts that should have been omitted, and amounts which were ...

FINDING 2025-004 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – Reporting Summary of Findings: Material Weakness, Modified Opinion The information submitted included amounts based on the incorrect period, amounts that should have been omitted, and amounts which were based on budgeted amounts instead of actual amounts, as such the reports were not fairly presented. Errors identified included the following:  Total Current Obligations for Government Services were overstated by $145,000.  Total Current Obligations for Roundabout were overstated by $323,628.  Total Current Obligations for Fairgrounds were overstated by $97,362. Contact Person Responsible for Corrective Action Plan: Janet Lloyd, Clinton County Auditor Contact’s Phone Number: 765.659.6330 Contact’s Email Address: jlloyd@clintoncountyin.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The Auditor did take tremendous care to create a spreadsheet to make sure expenditures were reported in the correct time periods for 2025. However, there were reporting errors. The First Deputy will review the timeframe and expenditures as well as we will ensure there are several sets of eyes on the documentation before submitting the P&E report. We will have both the Auditor and First Deputy create the spreadsheet and review and sign before submitting. Anticipated Completion Date: December 31, 2026

View Audit 413007

Finding 1238055 (2025-002)

Material Weakness 2025

Oklahoma City Housing Authority

OK

HUD Housing Programs Subrecipient Monitoring Allowable Costs / Cost Principles

Housing Voucher Cluster – Assistance Listing Nos. 14.871/14.879 – PIC Reporting Recommendation: We recommend that the Authority reviews its process for uploading data to the PIC system to ensure each HUD-50058 recertification gets submitted timely and accurately. Explanation of disagreement with aud...

Housing Voucher Cluster – Assistance Listing Nos. 14.871/14.879 – PIC Reporting Recommendation: We recommend that the Authority reviews its process for uploading data to the PIC system to ensure each HUD-50058 recertification gets submitted timely and accurately. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: During this time, HUD was working to switch reporting systems from PIC to HIP. Our software showed the files in question were submitted and no rejection noted, yet the records are not showing as received on HUD’s end. The Authority will work with our software provider and review any HUD changes affecting the PIC System. We will continue to review all records included in this upload, and work to ensure other records are uploaded manually. Name of the contact person responsible for corrective action: Richard Marshall Planned completion date for corrective action plan: 10/31/2026

View Audit 412865

Finding 1238031 (2025-008)

Material Weakness 2025

County of Allegheny, Pennsylvania

PA

HUD Housing Programs Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

We review each invoice monthly as they are submitted. Most of the reviews are insuring the items being invoiced are eligible under HUD and making sure the amounts are added correctly. We will review more closely the match submitted. Match for HUD is now reported based on the entire funding and not b...

We review each invoice monthly as they are submitted. Most of the reviews are insuring the items being invoiced are eligible under HUD and making sure the amounts are added correctly. We will review more closely the match submitted. Match for HUD is now reported based on the entire funding and not by individual grants. All match from all HUD programs is added together and submitted on one final report at the end o f each funding year. The requirement is 25% on all budget lines except for Leasing. However, if one program’s match is short of the 25% requirement, the overall CoC is responsible for the full match, 50 additional DHS admin costs are used to represent the additional match needed. For our FY24—25 annual report to HUD, we submitted 29.63% in match for the overall funding. This amount did not include any additional HMIS (data system) costs, Allegheny Link (our coordinated entry system) costs or additional DHS admin costs. With these additional eligible activities, our matching amount could have been over 50%. Therefore, even if some identified items were considered ineligible our match would not be in jeopardy since we have a lot ofeligible costs that DHS covers that would be considered match. Timetable of dates for performance of planned corrective action steps including completion date:_ Active. Each month, invoices are reviewed, and match is documented on our overall invoice tracking sheet. Since 2024, the Fiscal Specialist has been checking the reported match in each invoice to properly track the overall matching total. We will continue this into 2026 and will be asking for speciﬁc breakdowns if or when reported match is questioned or misreported. Matching is also now a focus point of the annual monitoring by our ofﬁce. Criteria reviewed includes making sure programs meet both their pledge amount as well as their 25% match requirement based on spending. The review ensures that these activities are eligible expenses and that programs have adequate supporting documentation available. On 6/26/26, we sent an email indicating that we will be tracking and checking match differently going in FY26-27. We will be asking all providers to show match similar in each invoice and ensuring that calculated match on the invoice cover sheets will also show the submitted match per the backup provided. Hopefully this will clear up any discrepancies going forward. E. Description of monitoring to be p erformed to ensure corrective action steps are taken: The match will be reviewed monthly during each monthly invoice review. This has also been added to the Fiscal Monitoring process so that certain providers will be reviewed annually as well.

View Audit 412843

Finding 1237978 (2025-004)

Material Weakness 2025

NORTHERN ROCKY MOUNTAIN ECONOMIC DEVELOPMENT DISTRICT

MT

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

Northern Rocky Mountain Economic Development District (NRMEDD) agrees with the recommendation. The corrective action described in response to Finding 2 applies uniformly to disbursements of the RLF program funds, with no separate or exception process. Northern Rocky Mountain Economic Development Dis...

Northern Rocky Mountain Economic Development District (NRMEDD) agrees with the recommendation. The corrective action described in response to Finding 2 applies uniformly to disbursements of the RLF program funds, with no separate or exception process. Northern Rocky Mountain Economic Development District (NRMEDD) agrees with the recommendation. NRMEDD will establish a policy to place a secondary review on expenditures. The Executive Director approves invoices for payment and forwards them to the Bookkeeper who prepares the check for signature. Additionally, checks or disbursements exceeding $10,000 require Board approval. This uniform application ensures RLF disbursement receives the same level of control as all other organizational expenditures.

View Audit 412764

Finding 1237946 (2025-006)

Material Weakness 2025

City of Vincennes

IN

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Material Weakness § 200.1 § 200.302 § 200.303 § 200.328 § 200.329

FINDING 2025-006 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Catherine MM Lane Contact Phone Number and Email Address: 812-677-3959 clane@vincennes.in.gov Views of Responsible Officials: We concur with th...

FINDING 2025-006 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Catherine MM Lane Contact Phone Number and Email Address: 812-677-3959 clane@vincennes.in.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: All reports will be prepared by the clerk’s office and will be reviewed for errors and omissions by someone who is knowledgeable about the reporting requirements prior to submission. Anticipated Completion Date: The corrective action plan will be implemented by December 31, 2026.

View Audit 412721

Corrective Action Plans

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