Corrective Action Plans

Finding 1224848 (2026-001)

Material Weakness 2026

NJ

Internal Control / Segregation of Duties Eligibility HUD Housing Programs

Management has reviewed the audit finding and acknowledges the allegation related to improper administration of the applicant wait list. The former project manager is no longer with the Project, and management responsibilities have been reassigned. Management plans to review wait list procedures, st...

Management has reviewed the audit finding and acknowledges the allegation related to improper administration of the applicant wait list. The former project manager is no longer with the Project, and management responsibilities have been reassigned. Management plans to review wait list procedures, strengthen oversight and documentation requirements, and implement additional controls to ensure applicants are processed in accordance with established policies and applicable program requirements.

View Audit 408072

Finding 1224622 (2026-001)

Material Weakness 2026

St James Health and Wellness, Inc.

SC

Special Tests & Provisions Material Weakness Internal Control / Segregation of Duties

In Finding 2026-001, it was reported that the Organization did not properly apply the sliding fee discounts to certain patients who visited the Organization during the year ended March 31, 2026. In addition, sliding fee applications were not maintained for all patients who received sliding fee disco...

In Finding 2026-001, it was reported that the Organization did not properly apply the sliding fee discounts to certain patients who visited the Organization during the year ended March 31, 2026. In addition, sliding fee applications were not maintained for all patients who received sliding fee discounts. Management recognizes the importance of complying with sliding fee guidelines and the Organization’s sliding fee policy. In response to Finding 2026-001, proper training will be given to employees and sliding fee applications and discounts will be reviewed by a supervisor on a monthly basis to ensure compliance with the sliding fee policy. The Organization will also establish procedures to ensure that sliding fee applications are maintained in accordance with the Organization’s policies.

View Audit 407868

Finding 1223633 (2026-001)

Material Weakness 2026

Sunrise Community Health

CO

Subrecipient Monitoring Material Weakness Internal Control / Segregation of Duties

Federal Program: Consolidated Health Centers Grant Assistance Listing No. 93.224 & 93.527 Recommendation: Our auditors recommended the Organization to review internal controls in regards to the determination, recording, and monitoring of the sliding fee process to ensure that appropriate sliding fee...

Federal Program: Consolidated Health Centers Grant Assistance Listing No. 93.224 & 93.527 Recommendation: Our auditors recommended the Organization to review internal controls in regards to the determination, recording, and monitoring of the sliding fee process to ensure that appropriate sliding fee rates/categories are utilized for each sliding fee encounter. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization is aware of this issue and meets regularly to discuss the workflows identified to minimize this issue until the vendor has implemented an interface to resolve this issue. The Organization has procedures in place to address the internal controls related to determining, recording, and monitoring the sliding fee process. The goal is to ensure that the appropriate sliding fee rates/categories are utilized for each encounter for each patient. The Organization has been working with the electronic health record vendor to interface the medical and dental components of the system to ensure the information is flowing across both components of the application. The sliding fee scale information is housed in the medical component of the system and does not consistently flow to the dental component of the system. The tentative go live date for this interface is scheduled for September 2026. Until then the team will continue to assess all dental sliding fee scale patients accounts manually to ensure accurate sliding fee rates/categories are utilized for each sliding fee encounter/patient.

View Audit 407144

Finding 1225393 (2025-001)

Material Weakness 2025

NORTHERN ELECTRIC COOPERATIVE, INC.

SD

Reporting Material Weakness

Federal Agency Name: Department of Homeland Security Pass-Through Entity: State of South Dakota Office of Emergency Management Assistance Listing Number: 97.039 Program Name: Hazard Mitigation Grant Program Finding Summary: The Association does not have an internal control system designed to provide...

Federal Agency Name: Department of Homeland Security Pass-Through Entity: State of South Dakota Office of Emergency Management Assistance Listing Number: 97.039 Program Name: Hazard Mitigation Grant Program Finding Summary: The Association does not have an internal control system designed to provide for a complete and accurate schedule of federal expenditures of federal awards being audited. As auditors, we were requested to assist with the preparation of the schedule and accompanying notes to the schedule. Corrective Action Plan: It is not cost effective to have an internal control system designed to provide for the preparation of the schedule of federal expenditures of federal awards and the accompanying notes to the schedule. We requested that our auditors, Eide Bailly, LLP, prepare the schedule and accompanying notes. We have designated a member of management to review the drafted schedule and accompanying notes to the schedule. Responsible Individuals: Char Hager, CEO Anticipated Completion Date: Ongoing

View Audit 408347

Finding 1225270 (2025-005)

Material Weakness 2025

Henry C. Nevins Home, Inc.

MA

HUD Housing Programs Internal Control / Segregation of Duties Special Tests & Provisions

Federal Award Finding 2025-005 - Material Weakness, Material Non-Compliance - Special Tests and Provisions, Surplus Cash and Distributions to Owners or Affiliates Finding: During the fiscal year ended December 31, 2025, project management did not prepare or document a surplus cash calculation in acc...

Federal Award Finding 2025-005 - Material Weakness, Material Non-Compliance - Special Tests and Provisions, Surplus Cash and Distributions to Owners or Affiliates Finding: During the fiscal year ended December 31, 2025, project management did not prepare or document a surplus cash calculation in accordance with HUD requirements, nor did management implement controls to review, approve, or retain documentation supporting the required calculation. Recommendation: Management should establish and implement formal policies and procedures to ensure that surplus cash is independently calculated in accordance with HUD requirements and the applicable HUD Regulatory Agreement. Such procedures should include preparation of a documented surplus cash calculation at each required reporting period using HUD-prescribed criteria; Independent review and approval of the surplus cash calculation by appropriate management personnel or, where applicable, the court-appointed receiver; and retention of supporting documentation sufficient to demonstrate compliance with HUD restrictions on the use and distribution of project funds. Management should coordinate with the court-appointed receiver and HUD to ensure that surplus cash determinations are performed consistently and in compliance with program requirements going forward. Action Taken: Management acknowledges the finding related to the absence of an independently prepared and documented surplus cash calculation. During the fiscal year ended December 31, 2025, the Organization operated in an environment of financial distress, limited staffing resources, and evolving oversight responsibilities, which contributed to informal and undocumented procedures related to surplus cash determinations. As disclosed in the financial statements, the Organization became subject to a court-appointed receivership. Following the appointment of the receiver, responsibility for financial oversight, including compliance with HUD cash flow and surplus cash requirements, has transitioned to the receiver in coordination with HUD. The receiver and management are evaluating HUD requirements related to surplus cash calculation. Responsible Person: Paul Valentine, Receiver Target Completion Date: September 30, 2026 Status: Not started

View Audit 408309

Finding 1225268 (2025-004)

Material Weakness 2025

Henry C. Nevins Home, Inc.

MA

HUD Housing Programs Special Tests & Provisions Cash Management

Federal Award Finding 2025-004 - Material Weakness, Material Noncompliance - Special Tests and Provisions, Cash Receipts Finding: The Organization maintained cash balances in excess of federally insured limits in financial institutions that did not meet HUD's minimum GNMA rating requirements. Recomm...

Federal Award Finding 2025-004 - Material Weakness, Material Noncompliance - Special Tests and Provisions, Cash Receipts Finding: The Organization maintained cash balances in excess of federally insured limits in financial institutions that did not meet HUD's minimum GNMA rating requirements. Recommendation: The Organization should transfer excess cash balances to financial institutions that meet HUD's GNMA rating requirements or otherwise structure its cash holdings to ensure compliance with federal insurance limits and HUD custodial requirements. Action Taken: Nevins moved to this financial institution with the first HUD loan in 2015. This is a local bank that actively supports Nevin's mission in the community. Given Nevins’ current financial struggles, the balance in the bank seldom exceeds the $250,000 threshold. In addition, the receiver established its own account with East West Bank and was in the process of fully transitioning the operating account to East West Bank at the end of the fiscal year. Responsible Person: Paul Valentine, Receiver Target Completion Date: September 30, 2026 Status: Not started

View Audit 408309

Finding 1225266 (2025-003)

Material Weakness 2025

Henry C. Nevins Home, Inc.

MA

HUD Housing Programs Special Tests & Provisions Subrecipient Monitoring

Federal Award Finding 2025-003 - Material Weakness, Material Noncompliance - Special Tests and Provisions, Mortgage Reserve Fund, Equipment Replacement Reserve Fund, and Special Escrows Finding: During the audit period, Henry C. Nevins Home, Inc. did not make all required deposits into the reserve f...

Federal Award Finding 2025-003 - Material Weakness, Material Noncompliance - Special Tests and Provisions, Mortgage Reserve Fund, Equipment Replacement Reserve Fund, and Special Escrows Finding: During the audit period, Henry C. Nevins Home, Inc. did not make all required deposits into the reserve for replacement fund in accordance with the terms of the applicable HUD Regulatory Agreement. The required monthly reserve deposits were either not made or were made in amounts less than those required. Recommendation: We recommend that Henry C. Nevins Home, Inc., in coordination with the court-appointed receiver and HUD, establish procedures to ensure that reserve for replacement deposits are made timely and in accordance with the HUD Regulatory Agreement, or that appropriate waivers or modifications are obtained from HUD where compliance is not currently feasible. Action Taken: Management acknowledges the audit finding related to the failure to make required deposits into the reserve for replacement fund in accordance with the HUD Regulatory Agreement. As disclosed in the notes to the financial statements, during the audit period the Organization was subject to a court-appointed receivership effective September 12, 2025 and is in default under its HUD-insured mortgages. As part of the receivership, control over substantially all cash management and financial decision-making activities was assumed by the court-appointed receiver. Management believes that the conditions giving rise to this finding are directly related to liquidity constraints. Given the complexities of the receivership and regulatory environment, a specific timeline for remediation is not able to be determined. As a result of the loan default, the mortgage was assigned to the U.S. Department of Housing and Urban Development. Since the appointment of the Receiver, responsibility for cash management, financial oversight, and debt service planning has transitioned to the Receiver. The Receiver and the Organization are actively evaluating available options to address the loan default which includes marketing the Organization for a sale. Interim corrective actions include enhanced cashflow monitoring, prioritization of expenses required to continue operations, and ongoing communication with HUD regarding the sale process. Management believes that these actions will address the conditions identified and result in the satisfaction of the HUD loan. Responsible Person: Paul Valentine, Receiver Target Completion Date: September 30, 2026 Status: In process

View Audit 408309

Finding 1225265 (2025-002)

Material Weakness 2025

Henry C. Nevins Home, Inc.

MA

HUD Housing Programs Special Tests & Provisions Subrecipient Monitoring

Federal Award Finding 2025-002 - Material Weakness, Material Noncompliance - Special Tests and Provisions, Mortgage Status and Reserve for Replacements Finding: During the fiscal year, the Organization experienced ongoing financial distress and declining liquidity, which adversely affected its abili...

Federal Award Finding 2025-002 - Material Weakness, Material Noncompliance - Special Tests and Provisions, Mortgage Status and Reserve for Replacements Finding: During the fiscal year, the Organization experienced ongoing financial distress and declining liquidity, which adversely affected its ability to meet financial obligations as they became due. As a result, mortgage payments, including required principal, interest, mortgage insurance premiums, and escrow deposits, were not made in accordance with the loan and regulatory agreements. As of December 31, 2025, delinquent amounts totaled approximately $978 thousand. Recommendation: The Receiver and the Organization should work with HUD to develop and implement a formal workout or resolution plan, including enhanced cash-flow monitoring and debt service planning, to address the loan default and restore compliance with HUD debt service requirements. Action Taken: Management acknowledges the finding related to the failure to make required debt service payments under the HUD Section 232 and Section 241(a) insured mortgage loan agreements. The Organization experienced significant financial distress and constrained liquidity during the fiscal year, which limited its ability to remit required principal, interest, mortgage insurance premium, and escrow payments as they became due. As a result of the loan default, the mortgage was assigned to the U.S. Department of Housing and Urban Development. With the appointment of a Receiver over the Organization, responsibility for cash management, financial oversight, and debt service planning has transitioned to the Receiver. The Receiver is marketing the facility towards a sale in order to satisfy the outstanding loan balance with HUD. Interim corrective actions include enhanced cash-flow monitoring, prioritization of operational suppliers, and ongoing communication with HUD regarding the project's financial condition and sale status. Management believes that these actions will support progress towards stabilization and marketability of the Organization. Responsible Person: Paul Valentine, Receiver Target Completion Date: September 30, 2026 Status: In process

View Audit 408309

Finding 1225253 (2025-002)

Material Weakness 2025

Sherburne County

MN

Material Weakness Internal Control / Segregation of Duties

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Number: 93.778 Federal Award Identification Number and Year: S2505MN5ADM - 2025 Award Period: 2025 Type of Finding: • Material Weakness in Internal Control over Compliance Recomme...

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Number: 93.778 Federal Award Identification Number and Year: S2505MN5ADM - 2025 Award Period: 2025 Type of Finding: • Material Weakness in Internal Control over Compliance Recommendation: CLA recommend that the County implement sufficient internal control procedures to ensure properly documented review of all reports. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will implement the recommendation immediately. Name of the contact person responsible for corrective action plan: Loraine Rupp, Sherburne County Auditor-Treasurer Planned completion date for corrective action plan: Already corrected

View Audit 408288

Finding 1224986 (2025-047)

Material Weakness 2025

State of Rhode Island

RI

Eligibility Special Tests & Provisions Subrecipient Monitoring § 200.303

The Department updated Policy (218-RICR-20-002) to reflect 45 CFR 205.55, including procedures for using IEVS interfaces and incorporating the resulting information into eligibility determinations. The updated policy will be sent to OMB 7/1/26. Additionally, the updated policy will be discussed at m...

The Department updated Policy (218-RICR-20-002) to reflect 45 CFR 205.55, including procedures for using IEVS interfaces and incorporating the resulting information into eligibility determinations. The updated policy will be sent to OMB 7/1/26. Additionally, the updated policy will be discussed at meetings (Office Hours, Training consultations, and Quarterlies). System interfaces will run on a quarterly basis consistent with the language in 45 CFR §205.55 regarding all applicants. This process is being tracked and prioritized in BRR-141767 which is the ticket number used to communicate with the vendor. In addition, DHS is strengthening operational controls to ensure required IEVS interfaces are executed, reviewed, and acted upon within required federal timeframes. Supervisors will monitor outstanding interface matches and timeliness of case actions as part of routine quality assurance activities to ensure interface information is appropriately evaluated, documented within the electronic case record, and incorporated into eligibility determinations. These actions will be supported by the Department's broader supervisory quality assurance and pre-authorization review initiatives to improve verification accuracy, ensure timely processing of electronic data matches, and reduce future eligibility errors. The Department also notes that a portion of the untimely processing identified during the audit occurred during the RIBridges cybersecurity incident, when staff were operating under documented Business Continuity Plan (BCP) procedures to restore critical operations and address processing backlogs. While these circumstances contributed to delays during the audit period, the Department recognizes the need to strengthen routine controls and has implemented the corrective actions described above. Information security enhancements are further addressed in response to Finding 2025-032. Anticipated Completion Date: Ongoing – The process of posting updated policy and then the public comment period historically takes about 6 months. Disseminating information to staff regarding the policy updates will begin July 2026 and continue until saturation. Contact Person: Donna Rook, Administrator, Family & Adult Services, Department of Human Services donna.m.rook@dhs.ri.gov

View Audit 408197

Finding 1224985 (2025-046)

Material Weakness 2025

State of Rhode Island

RI

Eligibility Internal Control / Segregation of Duties Material Weakness

The Department has developed a comprehensive Multi-Program Eligibility Review Tool designed to strengthen supervisory oversight and improve consistency in eligibility determinations across public assistance programs. The tool, currently in final development, will be implemented statewide and utilize...

The Department has developed a comprehensive Multi-Program Eligibility Review Tool designed to strengthen supervisory oversight and improve consistency in eligibility determinations across public assistance programs. The tool, currently in final development, will be implemented statewide and utilized by supervisory staff as part of routine quality assurance and case review activities. The review tool has been expanded to specifically address the documentation deficiencies identified through the audit, including verification of citizenship and identity for all household members, residency documentation, hardship determinations, employment plans, initial applications, recertifications, interim reports, and required case documentation maintained within RIBridges. In addition, the Department has revised the DHS-2H Hardship Request form to clearly document hardship eligibility criteria and require participant attestation for the applicable hardship category, strengthening documentation supporting eligibility determinations. To further strengthen internal controls, the Department will: • implement supervisory case reviews using the Multi-Program Review Tool; • provide staff training on documentation and eligibility requirements; • monitor review results to identify recurring trends and implement corrective coaching where needed; and • incorporate findings into ongoing quality assurance and program monitoring to ensure sustained compliance with eligibility documentation requirements. These actions are intended to strengthen supervisory oversight, improve documentation compliance, and reduce the risk of unsupported eligibility determinations identified in the audit. Anticipated Completion Date: Fall of 2026 Contact Persons: Donna Rook, Administrator, Family & Adult Services, Department of Human Services donna.m.rook@dhs.ri.gov Vania Rebollo, Assistant Administrator Family and Children Service, Department of Human Services Vania.Rebollo@dhs.ri.gov

View Audit 408197

Finding 1224935 (2025-003)

Material Weakness 2025

City of Huntington

IN

Reporting Internal Control / Segregation of Duties Subrecipient Monitoring § 200.303

FINDINGS 2025-003 Contact person responsible for Corrective Action: Christi McElhaney, City Clerk Treasurer Contact phone number: 260-356-1400 x2016 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: The City continues to implement controls when contrac...

FINDINGS 2025-003 Contact person responsible for Corrective Action: Christi McElhaney, City Clerk Treasurer Contact phone number: 260-356-1400 x2016 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: The City continues to implement controls when contracted consultants are assisting with projects, to ensure grant reports are properly reviewed and approved by a designated City employee before being submitted. Anticipated completion date: July 31, 2026

View Audit 408194

Finding 1224902 (2025-002)

Material Weakness 2025

Central Maine Area Agency on Aging D/b/a Spectrum Generations

ME

Allowable Costs / Cost Principles Material Weakness Reporting

Finding 2025-002: Account Reconciliations Type of Finding: Material Weakness in Internal Control Over Financial Reporting and Internal Control Over Compliance Corrective Action Narrative: Spectrum Generations will strengthen the balance sheet reconciliation process and supervisory review controls ac...

Finding 2025-002: Account Reconciliations Type of Finding: Material Weakness in Internal Control Over Financial Reporting and Internal Control Over Compliance Corrective Action Narrative: Spectrum Generations will strengthen the balance sheet reconciliation process and supervisory review controls across significant accounts. Planned Corrective Actions: Controller will prepare monthly reconciliations for all significant balance sheet accounts, including cash, AR, prepaid expenses, refundable advances, deferred revenue, notes payable and other material accounts. Each reconciliation will include the general ledger balance, supporting detail, reconciling items, preparer name, and date prepared. CFO will perform and document secondary review, including date of review and follow-up on unresolved items. A standardized reconciliation template and balance sheet close checklist will be used agency-wide. Responsible Officials: Controller and CFO Expected Outcome: Formal monthly reconciliations and documented supervisory review will improve financial reporting accuracy and strengthen compliance oversight.

View Audit 408145

Finding 1224896 (2025-001)

Material Weakness 2025

CIVICA FOUNDATION

UT

Reporting Internal Control / Segregation of Duties Subrecipient Monitoring § 200.328 § 200.329

Finding Summary: Material noncompliance was noted in reporting as reported amounts did not agree to underlying supporting documentation. Responsible Individuals: Kim Clay, Corporate Controller and Paul DiTomasso, Site`2 Controller Corrective Action Plan: Management will review and improve internal c...

Finding Summary: Material noncompliance was noted in reporting as reported amounts did not agree to underlying supporting documentation. Responsible Individuals: Kim Clay, Corporate Controller and Paul DiTomasso, Site`2 Controller Corrective Action Plan: Management will review and improve internal controls over reporting to ensure that reported amounts agree to underlying supporting documentation. Anticipated Completion Date: June 30, 2026

View Audit 408122

Finding 1224888 (2025-004)

Material Weakness 2025

City of Lawrence, Kansas

KS

Special Tests & Provisions Subrecipient Monitoring Material Weakness

Finding 2025-004: Material Weakness and Noncompliance: Special Tests and Provisions (Revenue Diversion) Finding: The City’s Airport Improvement Program has special tests and provisions requirements applicable to revenue diversion requirements of the grant. The City did not have processes and control...

Finding 2025-004: Material Weakness and Noncompliance: Special Tests and Provisions (Revenue Diversion) Finding: The City’s Airport Improvement Program has special tests and provisions requirements applicable to revenue diversion requirements of the grant. The City did not have processes and controls in place to ensure compliance with federal requirements related to the prevention of revenue diversion, along with other regulatory matters identified by the FAA. The City did not also have sufficient processes and controls in place for monitoring the execution and performance of agreements and lessees and FBO. Corrective Actions Taken or Planned: The City has and continues to perform a legal and management review of the FAA’s concerns associated with the Airport Improvement Program requirements. After consultation with the City’s legal counsel, our analysis shows that corrections are necessary and revenue diversion may not have occurred, or not to the extent originally asserted. This ongoing matter will be addressed with additional consultation with the FAA and City airport managers. The issues identified pertain to compliance with grant assurance obligations, specifically the need for strengthened processes to ensure ongoing adherence to federal program requirements. The City’s review is ongoing with assistance from counsel specializing in airport operations and federal regulatory compliance. As this work advances, the City will collaborate closely with the Airport Manager and Executive Leadership to design, formalize, and implement the necessary internal controls to ensure compliance with FAA grant assurances. This could include and is not limited to procedures for: 1. Monitoring and documenting compliance with grant assurance requirements; 2. Strengthening oversight of agreements, leases, and FBO operations; 3. Establishing systematic controls for revenue diversion monitoring and periodic testing; 4. Ensuring timely reporting and documentation to detect and prevent noncompliance. Contact Person: Melissa Sieben, Toni Wheeler, Rachelle Mathews Anticipated Completion Date: December 31, 2026

View Audit 408113

Finding 1224847 (2025-001)

Material Weakness 2025

TELLURIDE REGIONAL AIRPORT

CO

Cash Management Material Weakness Reporting

Telluride Regional Airport Authority (“TRAA”) respectfully submits the following corrective action plan for the year ended December 31, 2025. Reference Number: 2025-001 Finding: TRAA’s 2025 Single Audit brought forth finding(s) which required a corrective action letter or Plan. The following item re...

Telluride Regional Airport Authority (“TRAA”) respectfully submits the following corrective action plan for the year ended December 31, 2025. Reference Number: 2025-001 Finding: TRAA’s 2025 Single Audit brought forth finding(s) which required a corrective action letter or Plan. The following item related to the Airport’s federal grant reimbursements: - Program 20.106 revenues were underreported by $1,092,801 in 2025. This underreporting stems from expenditures being incurred in 2025 but the corresponding reimbursement request, and revenue recognition, was not recorded until 2026, partially attributed to delays in submitting reimbursement requests. Corrective Action: TRAA agrees that the finding is correct. Moving forward, management will review grant expenditures at year-end to verify that the related revenues have been accrued, and management will work to file reimbursement requests for outstanding grants on a more timely basis. Personnel Responsible for Corrective Action: Linda Soucie, Business Manager Anticipated Completion Date: December 31, 2026 for fiscal year 2026

View Audit 408067

Finding 1224805 (2025-001)

Material Weakness 2025

DOMESTIC VIOLENCE PROJECT, INC.

OH

Material Weakness Reporting § 200.512

Corrective Action Taken: Controls have been put in place to ensure proper determination of audit requirements and timely completion of future single audits.

View Audit 408027

Finding 1224791 (2025-002)

Material Weakness 2025

City of Alamosa

CO

Special Tests & Provisions Material Weakness Internal Control / Segregation of Duties

Finding 2025-002: Community Development Block/Grants/ State's Program and Non-Entitlement Grants in Hawaii Assistance Listing No. 14.228 Compliance Requirement: Special Tests and Provisions Grant No.: Not applicable Type of finding: Internal Control (material weakness) and Compliance (material nonco...

Finding 2025-002: Community Development Block/Grants/ State's Program and Non-Entitlement Grants in Hawaii Assistance Listing No. 14.228 Compliance Requirement: Special Tests and Provisions Grant No.: Not applicable Type of finding: Internal Control (material weakness) and Compliance (material noncompliance) Recommendation: The City should establish and implement formal policies and procedures requiring weekly certified payrolls be obtained and reviewed against the applicable Davis-Bacon wage requirment before contractor payment. The review should be documented and include evidence of comparison of labor classifications, wage rates, fringe benefits, and reviewer approval. Action Taken: Management will establish comprehensive, formal policies and procedures to ensure strict compliance with Davis-Bacon regulations alongside all applicable federal and state grant requirments. If there are questions regarding this plan, pleasecall the responsible parties listed below. Sincerely yours, Heather Sanchez City Manager City of Alamosa, Colorado Emily Martinez Finance Director City of Alamosa, Colorado

View Audit 407995

Finding 1224784 (2025-002)

Material Weakness 2025

Buffalo Bayou Partnership and Affiliates

TX

Reporting Material Weakness

Finding #2025-002 – Material Weakness and Material Noncompliance. U. S. Department of Housing and Urban Development, Community Development Block Grants/Entitlement Grants, Assistance Listing #14.218, Passed through the City of Houston, Contract year: 11/07/23 – 10/31/26. Condition and context: Manag...

Finding #2025-002 – Material Weakness and Material Noncompliance. U. S. Department of Housing and Urban Development, Community Development Block Grants/Entitlement Grants, Assistance Listing #14.218, Passed through the City of Houston, Contract year: 11/07/23 – 10/31/26. Condition and context: Management failed to include a federally funded contract on the SEFA for the last two years totaling $522,014. Omitting these expenditures from the SEFA resulted in incorrectly reported federal expenditures. Recommendation: Develop policies and procedures to identify and reflect all federal programs on the SEFA and reconcile the federal expenditures to the federal program revenue on a routine basis. Planned corrective action: The Vice President of Finance and Administration will be provided with all funding agreements to identify any new federal grants. Additionally, the project management team and the Vice President of Finance and Administration will now meet bi-weekly to discuss new funding agreements in order to identify any new funding that is federally sourced and would require inclusion on the SEFA. Responsible officer: Michele Nezi Marvin, Vice President of Finance and Administration. Estimated completion date: July 1, 2026.

View Audit 407980

Finding 1224598 (2025-002)

Material Weakness 2025

Dakota County

MN

Material Weakness Reporting Internal Control / Segregation of Duties § 200.303

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Numbers: 93.778 Federal Award Identification Numbers and Years: 2505MN5ADM – 2025 Passed Through Entity: Minnesota Department of Human Services Pass Through Number: H55255048 Comp...

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Numbers: 93.778 Federal Award Identification Numbers and Years: 2505MN5ADM – 2025 Passed Through Entity: Minnesota Department of Human Services Pass Through Number: H55255048 Compliance Requirement: Special Provisions Award Period: 2025 Recommendation: We recommend that the County reviews its polices and controls to ensure there is a formally documented control that ensures all required training of LCTS fiscal site contacts is completed and the documentation of the completions of the training is retained. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The County will share the Minnesota DHS previously recorded “LCTS Fiscal & Cost Schedule” training video with all new Fiscal Site Contacts that prepare cost schedules. County staff will then follow-up with the new Fiscal Site Contacts with a brief quiz to ensure they watched the training video and know how to capture only applicable costs in the cost schedule reports. Then, the LCTS Training Verification Form will be completed, signed by the applicable parties, and emailed to the LCTS Project Manager at Minnesota DHS. The communications sharing the training video, responses to the brief quiz, and LCTS Training Verification Form will be maintained as documentation of the completion of the required trainings. Name of the contact person responsible for corrective action: Lucas Chase, Audit Manager Planned completion date for corrective action plan: December 31, 2026

View Audit 407848

Finding 1224592 (2025-002)

Material Weakness 2025

City of Spring Hill

TN

Allowable Costs / Cost Principles Cash Management Reporting

Department of Homeland Security - Federal Emergency Management Agency (FEMA) Staffing for Adequate Fire and Emergency Response (SAFER) - CFDA No.97.083 Recommendation: The City should provide training for the grant administrator and/or include an additional review by individual that has been fully t...

Department of Homeland Security - Federal Emergency Management Agency (FEMA) Staffing for Adequate Fire and Emergency Response (SAFER) - CFDA No.97.083 Recommendation: The City should provide training for the grant administrator and/or include an additional review by individual that has been fully trained on the compliance requirements of the grant. The internal control process should include a formal way to document the review and approval of Fire Safety salary costs charged to the grant to provide evidence that internal controls are effectively designed and implemented and functioning in a timely manner throughout the year. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned and taken in response to finding: The City has authorized a full-time grants specialist position within the Finance Department to oversee the administration of grants separate from the programming department. The City will strengthen internal controls over grant compliance by implementing formal policies and procedures for allowable costs, documentation, and review. All grant expenditures will be reviewed and approved by Finance prior to submission, with supporting documentation maintained for eligibility determinations. Name(s) of the contact person(s) responsible for corrective action: Rebecca Holden Planned completion date for corrective action plan: 6/30/2026

View Audit 407845

Finding 1224495 (2025-002)

Material Weakness 2025

Scott County

MN

Subrecipient Monitoring Matching / Level of Effort / Earmarking Eligibility

Medical Assistance - Eligibility Recommendation: We recommend the County strengthen its supervisory review control over Medicaid eligibility casefile reviews by implementing procedures to ensure that identified errors or required corrections are documented, followed up on, and verified as completed ...

Medical Assistance - Eligibility Recommendation: We recommend the County strengthen its supervisory review control over Medicaid eligibility casefile reviews by implementing procedures to ensure that identified errors or required corrections are documented, followed up on, and verified as completed in a timely manner. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will ensure that supervisors will properly follow up with staff during casefile review and will retain documentation supporting that evaluation. Name of the contact person responsible for corrective action: Steven Jones Planned completion date for corrective action plan: December 31, 2026

View Audit 407746

Finding 1224380 (2025-004)

Material Weakness 2025

Kentucky Health Department Association

KY

Cash Management Internal Control / Segregation of Duties Subrecipient Monitoring § 200.305

KHDA will hire a CPA to oversee this process.

View Audit 407695

Finding 1224372 (2025-005)

Material Weakness 2025

City of Woodland

CA

Reporting Internal Control / Segregation of Duties Procurement, Suspension & Debarment

The City recently went through implementation of a new financial software, which has allowed for development of some documentation and assignment of roles and responsibilities with the new system. Staff will make efforts to enhance and update this documentation to provide specific details about the ...

The City recently went through implementation of a new financial software, which has allowed for development of some documentation and assignment of roles and responsibilities with the new system. Staff will make efforts to enhance and update this documentation to provide specific details about the annual financial reporting. The City has also struggled with vacancies in key positions, as well as challenges in completing successful recruitments to fill the positions; staff are exploring options for third party assistance with financial reporting functions.

View Audit 407679

Finding 1224305 (2025-001)

Material Weakness 2025

United Auto Workers Senior Citizens' Center Inc.

IL

HUD Housing Programs Internal Control / Segregation of Duties Material Weakness

U.S. Department of Housing and Urban Development MATERIAL WEAKNESS Segregation of Duties Recommendation: When this condition exists, management’s and the board’s close supervision and review of accounting information is the best means of preventing or detecting errors and fraud. Explanation of disag...

U.S. Department of Housing and Urban Development MATERIAL WEAKNESS Segregation of Duties Recommendation: When this condition exists, management’s and the board’s close supervision and review of accounting information is the best means of preventing or detecting errors and fraud. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: We agree and will continue to monitor financial results and accounting information as hiring additional employees is not practical. Name(s) of the contact person(s) responsible for corrective action: Donald Bly Planned completion date for corrective action plan: In process

View Audit 407595

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