Corrective Action Plans

Finding 1175320 (2025-004)

Material Weakness 2025

MN

Material Weakness Reporting Internal Control / Segregation of Duties § 200.303

Corrective Action: As of September 30, 2024, SHN has implemented strengthened internal control procedures over reporting. Under the updated process, the accountant prepares all reimbursement requests, and the Consulting Controller performs a supervisory review and formal approval prior to submission...

Corrective Action: As of September 30, 2024, SHN has implemented strengthened internal control procedures over reporting. Under the updated process, the accountant prepares all reimbursement requests, and the Consulting Controller performs a supervisory review and formal approval prior to submission. This review ensures accuracy, completeness, and compliance with reporting requirements before the accountant submits the final reports to the funding agency. Proposed completion date: Management will implement the above procedures immediately.

View Audit 389029

Finding 1175253 (2025-001)

Material Weakness 2025

Northeast Iowa Community College

IA

Special Tests & Provisions Student Financial Aid Material Weakness

Federal Agency Name: U.S. Department of Education Program Name: Student Financial Assistance Cluster Federal Financial Assistance Listing #: 84.007, 84.033, 84.063, 84.268 Compliance Requirement: Special Tests and Provisions – Enrollment Reporting Material Weakness in Internal Control Finding Summar...

Federal Agency Name: U.S. Department of Education Program Name: Student Financial Assistance Cluster Federal Financial Assistance Listing #: 84.007, 84.033, 84.063, 84.268 Compliance Requirement: Special Tests and Provisions – Enrollment Reporting Material Weakness in Internal Control Finding Summary: During testing of compliance for Enrollment Reporting, there were 9 instances out of 60 where the College did not report a student’s change in enrollment status accurately or within the required time frame of 60 days from the effective date of the student’s change in enrollment status. Responsible Individuals: Karla Winter, Registrar and Randy Mashek, Financial Aid Director Corrective Action Plan: The Registrar’s Office will collaborate with the Financial Aid Office to provide oversight to the Enrollment Reporting process. Oversight includes timely batch reporting of student enrollment statuses to the National Student Clearinghouse (NSC) for all periods of enrollment, NSC Error Report review and resolution between NICC’s internal Student Information System (Colleague) with the National Student Loan Data System (NSLDS), as well as having documented policies and procedures in place in order to administer, implement and comply with the full scope of Enrollment Reporting on an ongoing basis. The Policies and Procedures will address the previously recommended requirement of the Registrar’s Office to conduct and retain evidence of quality sampling once a semester. Implementation of certain measures has already begun in 2025-26 with the following steps: 1. The Registrar implemented a new reporting schedule with NSC to capture the Winterim semester (which is part of the spring financial aid semester) to accurately reflect the enrollment from that special mini session. This was implemented for the Winterim 2025 session (December 2025-January 2026) and reporting began 1/9/2026. 2. The Financial Aid Office is implementing a new system to review and resolve NSC Error Reports (NSLDS SSCR) beginning with the spring 2026 semester. These reports are provided by the Registrar, and produced by NSC after each enrollment submission. The Financial Aid staff will review Colleague and NSLDS records in order to determine corrective action in the required timeframe and then provide enrollment changes to NSC to have the student’s NSLDS record updated with accurate information. 3. NSC will update NICC’s reporting codes from the current two branches (00 Calmar and 01 Peosta) to a single reporting branch (00) beginning with the fall 2026 semester (2026-27 academic year). This change will align with recent updates over the past few years from two individual school codes (Calmar and Peosta) to just one code with several Federal Student Aid (FSA) systems. These systems include Student Loan origination at the Common Origination & Disbursement Web Site (COD), FSA Partner Connect as well as the Free Application for Federal Student Aid (FAFSA) school codes. The decision to transition from two codes to one in many reporting areas was made in order to reduce student confusion between campuses when completing the FAFSA, reduce reporting inefficiencies and errors, as well as streamline multiple reporting challenges for federal and state aid reporting. The actual process presented many challenges for NICC and FSA and was implemented over the past two years successfully. However, the transition did not include the enrollment reporting side with NSC/NSLDS which has been the source of many of our multiple student record errors. Anticipated Completion Date: Ongoing. Fully functional with the start of 2026-27 year.

View Audit 388965

Finding 1175247 (2025-004)

Material Weakness 2025

Bay Cove Human Services, Inc. & Affiliate

MA

Internal Control / Segregation of Duties Special Tests & Provisions Subrecipient Monitoring

Management acknowledges that certain internal controls did not operate effectively during the year ended June 30, 2025. Management is in the process of implementing additional controls to ensure a stable control environment that supports compliance with cash management and special tests and provisio...

Management acknowledges that certain internal controls did not operate effectively during the year ended June 30, 2025. Management is in the process of implementing additional controls to ensure a stable control environment that supports compliance with cash management and special tests and provisions requirements.

View Audit 388951

Finding 1175224 (2025-002)

Material Weakness 2025

Ide Center Apartments Ii, Inc. 042-Hd045

OH

Internal Control / Segregation of Duties HUD Housing Programs Material Weakness

Supportive Housing for Persons with Disabilities – Assistance Listing No. 14.181 Unadjusted Rental Rates Recommendation: Adjust rental rates immediately, and request adjustment on next HAP Voucher to begin repayment. Ensure proper training of employees, prepare the budget worksheet as soon as possib...

Supportive Housing for Persons with Disabilities – Assistance Listing No. 14.181 Unadjusted Rental Rates Recommendation: Adjust rental rates immediately, and request adjustment on next HAP Voucher to begin repayment. Ensure proper training of employees, prepare the budget worksheet as soon as possible and promptly read all correspondence for HUD and forward to management company. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Amounts will be adjusted over the next few HAP voucher to repay HUD and adjust rental rates on the next voucher. Name(s) of the contact person(s) responsible for corrective action: Stacy Lawson, CFO Planned completion date for corrective action plan: June 30, 2026

View Audit 388921

Finding 1175195 (2025-008)

Material Weakness 2025

Lennox School District

CA

Subrecipient Monitoring Material Weakness Reporting

District is committed to strengthening internal controls and has already begun implementing procedures such as reporting actuals only and retaining the records in a centralized place with back up documents to ensure compliance with the CARES Act and 2 CFR 200.333.

View Audit 388845

Finding 1175074 (2025-001)

Material Weakness 2025

Burke County

NC

Eligibility Internal Control / Segregation of Duties Material Weakness

None reported Finding 2025-001 Name of contact person: Corrective Action: Proposed Completion Date: Corrective Actions for Findings 2025-001 also apply to State requirements and State Awards. Margaret Pierce - Burke County Finance Director, Korey Fisher-Wellman - Department of Social Services Direct...

None reported Finding 2025-001 Name of contact person: Corrective Action: Proposed Completion Date: Corrective Actions for Findings 2025-001 also apply to State requirements and State Awards. Margaret Pierce - Burke County Finance Director, Korey Fisher-Wellman - Department of Social Services Director, Amanda Grady - Assistant Department of Social Services Director, and Tammy Wright - Medicaid Program Manager For all findings identified, Medicaid staff are required to attend training sessions to address the issues, and sign-in sheets will be required. During training, appropriate policies will be reviewed. The root causes of the errors were determined to be staff oversight and procedural lapses, compounded by policy changes, staff turnover, and the inexperience of some workers. Medicaid Supervisors will continue conducting 2nd Party Reviews. As cases are reviewed, supervisors will provide additional training as needed, either individually or in group settings. Training materials will be kept current and shared with the lead worker to ensure proper delivery. Workers will be required to complete refresher training when errors are found and collaborate with lead workers or supervisors for more detailed instruction or training. Group training will be scheduled if multiple workers demonstrate similar issues based on 2nd Party Review results. Supervisors conducting 2nd Party Reviews will examine two random cases per worker each month for timeliness and accuracy. In addition, two extra cases per worker will be spot-checked monthly to verify accurate resource entry. The Program Manager and Supervisors will monitor reports to ensure timeliness and require staff to document any cases that have gone overdue. These processes will help determine whether improvements have been made in resource accuracy. New employees will have notices and other correspondence reviewed before they are sent out to ensure accuracy. All new employees will continue to have 100% of their cases reviewed until supervisors determine they can process cases independently and correctly. Results from 2nd Party Reviews will be shared with the Program Manager, Assistant Director, and DSS Director. Corrections have been made to cases in error, and supporting documentation has been updated in NCFAST. Section IV - State Award Findings and Question Costs Supervisors will conduct training in response to the identified errors, with completion targeted by the end of January. Success will be measured through the results of ongoing 2nd Party Reviews. The agency will continue to monitor outcomes, provide group or individual training as needed, and address persistent issues through the disciplinary process when necessary. Additional training requirements and expanded, targeted spot-checks of cases will be implemented on an ongoing basis, based on continued findings, to further strengthen accuracy and compliance. Burke County, North Carolina Section III - Federal Award Findings and Question Costs Corrective Action Plan For the Year Ended June 30, 2025 Section II - Financial Statement Findings 139

View Audit 388700

Finding 1174887 (2025-001)

Material Weakness 2025

Westminster College

PA

Student Financial Aid Eligibility Material Weakness § 200.516

The College’s Vice President for Academic Affairs and Dean of the College concurred with the finding identified. The College has revised its policies and procedures as follows: Historically, Student Affairs coded only those students who took a Leave of Absence during the semester (“L”) or withdrew d...

The College’s Vice President for Academic Affairs and Dean of the College concurred with the finding identified. The College has revised its policies and procedures as follows: Historically, Student Affairs coded only those students who took a Leave of Absence during the semester (“L”) or withdrew during the semester (“W”). Student Affairs has created a new code (“N”) to track students who inform the college of their intent to withdraw at the end of a given semester. At the end of each semester, Student Affairs provides the Registrar’s Office with a report of all students who informed the college of their intent to unenroll (“L”, “W”, and “N”). Using the report, the Registrar’s Office confirms that all students have been accurately exited with the appropriate exit date and exit reason prior to submitting the final “end of term” report to the National Student Clearinghouse. This new process was implemented beginning in the Fall 2025 semester. The corrective actions will be implemented by Dr. Kristen M. Amick, Registrar. Dr. Amick’s email address is: amickkm@westminster.edu.

View Audit 388459

Finding 1174856 (2025-003)

Material Weakness 2025

Boys and Girls Village, Inc.

CT

Material Weakness Reporting Internal Control / Segregation of Duties

The Payroll specialist will review all time sheets each week before approving the time sheets.

View Audit 388427

Finding 1174833 (2025-002)

Material Weakness 2025

Innovia Foundation

WA

Reporting Subrecipient Monitoring Material Weakness

Finding 2025-002 FFATA reporting Summary of Finding: The Foundation did not report the first-tier subawards funded at $30,000 or more in accordance with FFATA. Name of contact person responsible for corrective action: Jeff Lenberger, lnnovia Foundation Controller Corrective Action Plan: As of the au...

Finding 2025-002 FFATA reporting Summary of Finding: The Foundation did not report the first-tier subawards funded at $30,000 or more in accordance with FFATA. Name of contact person responsible for corrective action: Jeff Lenberger, lnnovia Foundation Controller Corrective Action Plan: As of the audit report date lnnovia Foundation has notified the U.S. Department of Education regarding this reporting issue and is awaiting specific action steps to ensure appropriate reporting is completed. lnnovia Foundation is waiting to regain electronic access to the U.S. Department of Education reporting function through sam.gov since the grant period ended on August 31, 2025. As soon as specific guidance is provided from the U.S. Department of Education lnnovia Foundation will ensure prompt action is taken. Anticipated Completion Date of the Corrective Action: Immediately upon gaining access from the U.S. Department of Education lnnovia will report all required first-tier subawards .

View Audit 388389

Finding 1174751 (2025-003)

Material Weakness 2025

Clarkson College

NE

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

Student Financial Aid Cluster – Assistance Listing No. Various Recommendation: We recommend the College review and formalize its procedures to ensure that internal controls are in place to identify and correct any inconsistencies throughout the year. Explanation of disagreement with audit finding: T...

Student Financial Aid Cluster – Assistance Listing No. Various Recommendation: We recommend the College review and formalize its procedures to ensure that internal controls are in place to identify and correct any inconsistencies throughout the year. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: In the spring of 2025, Clarkson College made the decision to outsource majority of financial aid functions to the Higher Education Assistance Group (HEAG) due to a lack of internal controls. Since hiring HEAG in Spring 2025 to oversee our financial aid functions, Clarkson College has seen many improvements in our internal controls. Reconciliation of Direct Loans and Federal Pell Grant funds is conducted monthly by a designated Financial Aid staff member. Following completion, the reconciliation documentation is forwarded to the College Controller for independent review. Final approval is provided by the Vice President of Enrollment and Advising. A standing monthly meeting is also held between the Financial Aid and Finance teams to review reconciliation activity, address variances, and resolve any items requiring clarification. The Federal Work-Study (FWS) program is monitored and reviewed each pay period to ensure expenditures remain within authorized limits and align with student eligibility. Federal Supplemental Educational Opportunity Grant (FSEOG) and Federal Work-Study (FWS) funds are reviewed and reconciled periodically throughout each semester by a Financial Aid staff member. Upon completion of these reconciliations, supporting documentation is submitted to the College Controller for review and verification of accuracy. These procedures ensure compliance with federal regulations, promote internal control integrity, and provide appropriate oversight of all Title IV funding streams. Name(s) of the contact person(s) responsible for corrective action: Dr. Carla Dirkshneider, VP of Enrollment and Retention Planned completion date for corrective action plan: Corrective action was implemented Spring semester of FY 2025.

View Audit 388309

Finding 1174743 (2025-002)

Material Weakness 2025

Clarkson College

NE

Student Financial Aid Material Weakness Reporting

Student Financial Aid Cluster – Assistance Listing No. Various Recommendation: We recommend the College review and strengthen its reporting procedures to ensure that student statuses are accurately reported to NSLDS, as required by federal regulations. Explanation of disagreement with audit finding:...

Student Financial Aid Cluster – Assistance Listing No. Various Recommendation: We recommend the College review and strengthen its reporting procedures to ensure that student statuses are accurately reported to NSLDS, as required by federal regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Clarkson College completed its implementation of Anthology as a new student information system (SIS) in FY 25. Enrollment reports from the new SIS are used to update the National Student Clearinghouse and thus the NSLDS. The Registrar’s Office is working with our Anthology partner to determine issues with the enrollment dates and statuses. Moving forward, the Registrar’s Office will also do an internal audit of enrollment records between the National Student Clearinghouse, NSLDS, and our internal SIS. Name(s) of the contact person(s) responsible for corrective action: Dr. Carla Dirkshneider, VP of Enrollment and Retention Planned completion date for corrective action plan: Corrective action was implemented in the Spring semester of FY 2025.

View Audit 388309

Finding 1174314 (2025-003)

Material Weakness 2025

Oregon Manufacturing Extension Partnership, Inc.

OR

Procurement, Suspension & Debarment Subrecipient Monitoring Material Weakness § 200.303

Context and Cause – During the year ended June 30, 2025, OMEP entered into four first-tier subawards greater than $30,000 under AL number 11.611. The auditor tested one of these subawards, noting that the award was not yet reported under the Federal Funding Accountability and Transparency Act to the...

Context and Cause – During the year ended June 30, 2025, OMEP entered into four first-tier subawards greater than $30,000 under AL number 11.611. The auditor tested one of these subawards, noting that the award was not yet reported under the Federal Funding Accountability and Transparency Act to the Federal Subaward Reporting System (FSRS). Per further inquiry, all of the first-tier subawards were yet to be reported to the FSRS. OMEP was aware of the FFATA reporting requirements, but the reporting was not made timely. Internal controls were not adequately designed, and procedures were not in place to track and report first-tier subawards within the time frame required by federal requirements. Recommendation – The Organization should establish written policies and procedures for reporting first-tier subawards. Action Taken: OMEP will add a fiscal policy, that includes a documented review of first tier subawards, to ensure they are input to the FSRS no later than the last day of month that follows the initial obligation to the sub awardee. Responsible parties: Controller. Anticipated completion date: June 30, 2026.

View Audit 388072

Finding 1174308 (2025-001)

Material Weakness 2025

Union County

NC

Eligibility Internal Control / Segregation of Duties Subrecipient Monitoring

Responsible Parties: Janet Payne, Human Services Director Ashley Lantz, Department of Social Services Director Finding 2025-001, Medicaid Program - Significant Deficiency-Eligibility Response/Corrective Action: Findings: During the FY26 Single Audit of Medicaid, it was determined that the Union Coun...

Responsible Parties: Janet Payne, Human Services Director Ashley Lantz, Department of Social Services Director Finding 2025-001, Medicaid Program - Significant Deficiency-Eligibility Response/Corrective Action: Findings: During the FY26 Single Audit of Medicaid, it was determined that the Union County Medicaid program has deficiencies in the areas of oversight, income and deduction calculations, self employment income, self attestation, and internal controls related to 2nd party review corrections. Root Cause: It has been determined that staffing issues as well as deficiencies in training, due to vacancies on the training team, and lack of supervisor oversight due to span of control contributed to these deficiencies. Corrective Action: Due the the preliminary findings of the Single Audit, Union County Medicaid has already begun working on corrective actions. We have completed the following actions: • When an error is determined on an internal or external 2nd party review, the worker has 2 days to complete the correction. Once corrections are completed, the worker is to notify the supervisor that it has been completed. Supervisors are given 2 days to review the corrections. This is being added to our 2nd party review sheet for tracking effective 2/1. Initial tracking will be available once all February 2nd party reviews are completed. • Updates to our training are currently in progress for both new and seasoned staff. We anticipate these updates to be completed mid-February 2026 with training being completed by May 31, 2026 with all Medicaid staff. • Division Manager began monthly meetings with Medicaid leadership in November 2025. Monthly meetings focus on previous month’s 2nd party review findings and training needs as a way to ensure ongoing training needs are properly addressed. Corrective action currently in process includes the following: • Training on audit findings will be conducted by May 31, 2026. Pre and post assessments will be given to determine effectiveness of training. All staff will sign a statement of attendance and understanding upon the completion of trainings. Training topics will include income, self-employment income and deductions, self attestation, notices, and proper documentation. • Continuing education training will be completed monthly. Trainings will vary from month to month and will focus on common errors found in 2nd party reviews. Sessions will be conducted in small groups to allow better communication and more one on one time between the trainers and staff. Continuing education training will begin by May 31, 2026. • - Supervisors will continue to conduct 2nd party reviews to assess comprehension and adherance to Medicaid policy. Each month, beginning March 2026, Division Manager will receive a report from CQI to ensure that the 2 day correction and review mandate is being adhered to. It is important to note that the Medicaid Program Manager position is now vacant. The position will be filled as quickly as possible, and the Division Manager is currently taking over all roles of the Program Manager. Union County will implement the Corrective Action Plan by June 30, 2026.

View Audit 388059

Finding 1174195 (2025-001)

Material Weakness 2025

The Housing Authority of the City of Prichard, Alabama

AL

HUD Housing Programs Cash Management Material Weakness

Corrective Action Plan FYE 6/30/2025 Audit Finding # 2025-0001 – Cash Management The Housing Authority of the City of Prichard acknowledges the audit finding regarding interfund balances and accepts responsibility for implementing corrective actions to strengthen internal controls and ensure long-te...

Corrective Action Plan FYE 6/30/2025 Audit Finding # 2025-0001 – Cash Management The Housing Authority of the City of Prichard acknowledges the audit finding regarding interfund balances and accepts responsibility for implementing corrective actions to strengthen internal controls and ensure long-term financial sustainability. At the onset of the fiscal year, management recognized the need to reduce expenses and thus implemented an expense reduction strategy. In reviewing the overall operating expenses for the agency, comparing FYE 2025 to FYE 2024, overall operating expenses declined by approximately $1M, supporting management's goal to reaching a more sustainable long term financial strategy. To further this initiative and continue improving the cash flow position, management will pursue ongoing expense reductions and financial planning strategies to ensure long-term financial sustainability for the agency. This will be accomplished by implementing the following strategies: 1. Engage site management, maintenance, finance, and executive leadership in comprehensive reviews of approved budgets and financial statements to strengthen fiscal oversight and identify additional cost-reduction opportunities. 2. Executive management will review and approve specific categories of expenses to promote accountability, fiscal responsibility, and effective cost control. 3. Continue with enhancement of the agency's home ownership program, providing increased cash flows for operations and improved financial sustainability. 4. Evaluation measures will continue in which intercompany account balances will be reviewed on a monthly basis, determining which entities can support an intercompany reimbursement to the lending property. Upon determining entities with available cash flows, reimbursements will be processed. 5. Continue the agency's initiatives to increase revenues through transition of properties to other revenue streams that would provide more flexibility in establishing an increased rent structure (i.e. PBVs, market rate rents, etc.) As cash flow conditions improve, management will develop and implement a repayment plan to address intercompany balances, recognizing this as a long-term initiative critical to the Agency’s financial sustainability.

View Audit 387909

Finding 1174192 (2025-001)

Material Weakness 2025

Compass Rose Education

TX

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

Because of turnover, the School lacked sufficient oversight to ensure that allocations of Title I Part A funding by campus was in compliance with rank-and-serve methodologies. The Director of Special Revenue will work with the finance team to ensure that allocations by campus as in compliance and re...

Because of turnover, the School lacked sufficient oversight to ensure that allocations of Title I Part A funding by campus was in compliance with rank-and-serve methodologies. The Director of Special Revenue will work with the finance team to ensure that allocations by campus as in compliance and review those regularly. Responsible Official: Director of Special Revenue Anticipated Completion Date: February 27, 2026

View Audit 387895

Finding 1174140 (2025-001)

Material Weakness 2025

Merrillville Community School Corporation

IN

Special Tests & Provisions Subrecipient Monitoring Material Weakness § 200.303

FINDING 2025-001 Finding Subject: Title I Grants to Local Educational Agencies – Special Tests and Provisions – Annual Report Card/High School Graduation Rate Contact Person Responsible for Corrective Action: Mike Krutz Contact Phone Number and Email Address: 219-650-5300 x5370, mkrutz@mvsc.k12.in.u...

FINDING 2025-001 Finding Subject: Title I Grants to Local Educational Agencies – Special Tests and Provisions – Annual Report Card/High School Graduation Rate Contact Person Responsible for Corrective Action: Mike Krutz Contact Phone Number and Email Address: 219-650-5300 x5370, mkrutz@mvsc.k12.in.us Views of Responsible Officials: We concur with the finding. We have taken the audit finding, conclusions and recommendations and created a corrective action plan to correct our processes for the future. Description of Corrective Action Plan: The High School Staff implemented procedures to ensure adequate documentation is received to support a student’s removal/withdrawal from a cohort. The Student Withdrawal Report Form has been updated to include the most current State Withdrawal Codes as well as a high school administrator’s signature for approval. The procedures for removal/withdrawal from a cohort are as follows: 1. The student and/or parent complete the Withdrawal Report Form with the assistance of the attendance secretary. The Withdrawal Checklist Form is started and initialed by the attendance secretary. 2. The student and/or parent meet with an administrator or designee to review the Withdrawal Report Form and complete the Exit Interview Form. The Checklist Form is initialed by administrator or designee signifying completion of this step. 3. The attendance secretary scans the forms into the current student management system. The Checklist Form is initialed by the attendance secretary signifying completion of this step. 4. The original forms are hand delivered to the Registrar who then completes transfer requests and verifications to receiving schools. The Checklist Form is initialed by the Registrar signifying completion of this step. 5. The Registrar upon receiving the original documents hand delivers the Checklist Form to an administrator who reviews and signs the form approving the withdrawal. 6. The original documents are filed in the student’s permanent record folder. 7. Cohorts are reviewed after each trimester by grade level administration and cross referenced with the student management system to check for anomalies. Grade level administration will report their findings to the head principal or designee. Dexter Suggs, Ph.D. Superintendent of Schools "Once a Pirate, Always a Pirate" BOARD OF SCHOOL TRUSTEES Judy C. Dunlap James Donohue DeLena N. Thomas Alex Dunlap III Robert J. Krause President Vice-President Secretary Member Member INDIANA STATE BOARD OF ACCOUNTS 28 MERRILLVILLE COMMUNITY SCHOOL CORPORATION 6701 Delaware Street, Merrillville, IN 46410 (219) 650-5300 FAX (219) 650-5320 www.mvsc.k12.in.us If a student stops attending school and the student/parent does not come in to complete the process, the following procedures are followed: 1. The guidance office secretary attempts (and documents attempts) to contact the parent via phone calls, emails (with read receipt), and certified letters. All paperwork is printed and put in the student file. 2. The guidance office secretary searches the Education ID Portal site to determine if the student is attending another high school. 3. Continual effort is made to contact the parents by the guidance secretary or grade level dean. 4. Once the parent is reached, the above procedures are followed (see step1-7 above). 5. After 3 methods of contact are made (call, email, certified letter), the Student Withdrawal Report is completed and signed by an administrator and withdrawal codes 14 (Unknown/No Show 18+) or 15 (Truancy-Underage No Show) are used. 6. When the school is unable to get in contact with the parent, reports are made to DCS, Merrillville Truancy Court, and the updated procedures for Missing Students/Unknown Location are to be initiated immediately. Additional Step to Corrective Action Plan: We are establishing an annual internal audit, to be completed by central office staff, to ensure that all procedures related to the removal or withdrawal of individuals from a cohort are consistently and properly followed. The internal audit will consist of 10-15 randomly selected withdrawn student’s records. This audit will review documentation, decision-making processes, and compliance with established guidelines to confirm alignment with policy and regulatory requirements. The goal is to promote accountability, maintain program integrity, and identify any areas for improvement or need for additional training. Anticipated Completion Date: June 15, 2026

View Audit 387816

Finding 1173995 (2025-003)

Material Weakness 2025

College of Southern Idaho

ID

Student Financial Aid Material Weakness Reporting

Finding 2025-003 Finding Summary: 34 CFR 690.83 and the FSA Handbook states that an Institution must report accurate and timely data. During testing of compliance for COD Reporting, there were 6 instances out of 60 where the College did not report a student’s disbursement information to COD accurate...

Finding 2025-003 Finding Summary: 34 CFR 690.83 and the FSA Handbook states that an Institution must report accurate and timely data. During testing of compliance for COD Reporting, there were 6 instances out of 60 where the College did not report a student’s disbursement information to COD accurately. Corrective Action Plan: The institution has taken and has fixed this issue by: • The system is now functioning correctly after addressing the issue with the vendor. • To prevent future issues, a more robust tool has been developed to identify discrepancies promptly should they arise. Responsible Individual(s): Monze Stark – Dean of Enrollment Services, Jennifer Service – Director of Financial Aid Anticipated Completion Date: 12/31/2025

View Audit 387647

Finding 1173994 (2025-002)

Material Weakness 2025

College of Southern Idaho

ID

Special Tests & Provisions Student Financial Aid Material Weakness

Finding 2025-002 Finding Summary: 34 CFR 668.164(h)(2)(i,ii) states that A title IV, HEA credit balance must be paid directly to the student or parent as soon as possible, but no later than—Fourteen (14) days after the balance occurred if the credit balance occurred after the first day of class of a...

Finding 2025-002 Finding Summary: 34 CFR 668.164(h)(2)(i,ii) states that A title IV, HEA credit balance must be paid directly to the student or parent as soon as possible, but no later than—Fourteen (14) days after the balance occurred if the credit balance occurred after the first day of class of a payment period; or Fourteen (14) days after the first day of class of a payment period if the credit balance occurred on or before the first day of class of that payment period. During our testing of compliance for HEA Credit balances, there were 5 instances out of 60 where the College did not refund a student’s within the required time frame of 14 days from the first day of class or 14 days after the credit balance was created. Corrective Action Plan: The institution has taken and has fixed this issue by: • Dedicated Staffing: A full-time position has been approved and filled to manage stipend processing, ensuring consistent oversight and timely disbursement. • Process Documentation: Stipend processing procedures have been documented to ensure continuity, accountability, and clarity of responsibilities. • System Review and Planning: The system is up and running as it should have been. • Ongoing Monitoring: Leadership will continue to monitor stipend processing timelines and staffing capacity to ensure compliance and timely student support. Responsible Individual(s): Monze Stark – Dean of Enrollment Services, Bethany Parmer – Assistant Dean of Enrollment Services Anticipated Completion Date: 12/31/2025

View Audit 387647

Finding 1173799 (2025-001)

Material Weakness 2025

College of Idaho

ID

Special Tests & Provisions Student Financial Aid Material Weakness

Finding Number: 2025-001 Federal Program: U.S. Department of Education – Student Financial Assistance Cluster Assistance Listing Numbers: 84.063, 84.007, 84.268, 84.033 Compliance Requirement: Special Tests and Provisions – Enrollment Reporting Finding Summary: The College agrees with the audit find...

Finding Number: 2025-001 Federal Program: U.S. Department of Education – Student Financial Assistance Cluster Assistance Listing Numbers: 84.063, 84.007, 84.268, 84.033 Compliance Requirement: Special Tests and Provisions – Enrollment Reporting Finding Summary: The College agrees with the audit finding and is committed to strengthening internal controls over enrollment status reporting to ensure continued compliance with federal requirements. During management’s review of the audit results, the Registrar’s Office was unable to reproduce the specific enrollment status reporting errors identified during audit testing and could not definitively determine how the errors occurred. Notwithstanding this, the College recognizes that weaknesses in monitoring and documentation contributed to the inability to detect and prevent the reporting discrepancies in a timely manner. Accordingly, management has developed the following corrective actions. The College will enhance coordination among Registrar’s Office, Financial Aid, and Information Technology to ensure enrollment status changes including graduation, withdrawal, and changes in enrollment status are identified promptly and reported accurately to the National Student Loan Data System (NSLDS) within the required 60-day timeframe in accordance with 34 CFR 690.83(b)(2) and 34 CFR 685.309. For over 20 years, the College of Idaho has been a member of the National Student Clearinghouse (NSCH). One of the many advantages of membership to the NSCH is that the NSCH serves as a conduit to NSLDS and sends reports to the NSLDS for the college. Ellucian Colleague has written a series of reports that result in a .txt file that is uploaded to NSCH who in turn uploads to NSLDS. The College of Idaho submits regular transmissions to NSCH so that the 60-day timeframe is met. Corrective Action Plan: • Process Review and Clarification of Roles The Registrar’s Office will review and formalize procedures related to enrollment status determination and reporting. Roles and responsibilities for identifying enrollment changes, preparing NSLDS files, and submitting updates will be clearly documented to ensure accountability and continuity. • Student Information System Reporting Improvements The College will refine and validate student information system (SIS) reports used for enrollment reporting to ensure accurate capture of enrollment status changes and effective dates. Reports will be reviewed regularly to confirm continued reliability. • Internal Review and Oversight Controls Prior to submission to NSCH, enrollment status reports will be reviewed by the Registrar supervisory personnel to confirm accuracy and completeness. Evidence of review will be retained in accordance with institutional record retention practices. • Established Reporting Timeline A recurring reporting calendar will be implemented to ensure enrollment status updates are submitted within required federal timeframes. Backup personnel will be identified to support continuity during staff absences. • Training and Ongoing Communication Staff involved in enrollment reporting will receive periodic training on federal enrollment reporting requirements and institutional procedures. Regular communication between Enrollment Services and Financial Aid will support timely identification and resolution of discrepancies. Responsible Official(s): Mark Heidrich (Registrar/Associate Vice President for Institutional Effectiveness), in coordination with Stephanie House (Director of Financial Aid) and Imad Sweidan (Chief Information Officer), as appropriate. Anticipated Completion Date: June 30, 2026 Current Status: Corrective action is in progress. Management expects these actions to be fully implemented prior to the next audit period and believes the strengthened controls will prevent recurrence of this finding.

View Audit 387449

Finding 1173658 (2025-001)

Material Weakness 2025

Colome Consolidated School District No. 59-3

SD

Internal Control / Segregation of Duties Material Weakness

Betsy Rohde, CEO/Business Manager for the Colome School District, is the contact person responsible for the corrective action plan for this finding. This finding is due to the limited number of staff employed in the district's business office. The size of the school district and the monetary resourc...

Betsy Rohde, CEO/Business Manager for the Colome School District, is the contact person responsible for the corrective action plan for this finding. This finding is due to the limited number of staff employed in the district's business office. The size of the school district and the monetary resources available prevent the hiring of additional staffing to the business office at the proper levels for internal controls. Planned Corrective Action Plan: The Colome School District has an internal controls policy to identify areas of risk and implements that policy to reduce the risk of any mistakes and inappropriate or illegal activity within the school district. The school board takes an active role in monitoring financials, including reviewing the bank statements, claims, and financial sofware reports each month. They may request any supporting documentation that is not already provided at school board meetings by meeting one on one with the CEO/Business Manager. The principal was added to email alerts of all bank transfers including payroll and ACH payments. This ensures an additional staff member is notified when the CEO/Business Manager makes financial transactions within the school district's bank accounts. The school board will review the policy to identify any areas that still leave a significant risk to ensure all financial activities are monitored by more than one individual. This is an ongoing process.

View Audit 387337

Finding 1173602 (2025-001)

Material Weakness 2025

Pitt County, North Carolina

NC

Student Financial Aid Allowable Costs / Cost Principles Eligibility § 200.303 § 200.516

Corrective Action/Management Response: Ensuring that Adoption records are maintained accurately with all documented requirements. Changing Practice to include putting documents into the document management system (Traverse) in order to have a copy of required documents in the event originals are los...

Corrective Action/Management Response: Ensuring that Adoption records are maintained accurately with all documented requirements. Changing Practice to include putting documents into the document management system (Traverse) in order to have a copy of required documents in the event originals are lost, or documents are damaged due to flooding (which is what occurred in the basement where documents were housed). Cases that are more than 10 years old are typically going to be more difficult to locate needed items, due to records being maintained differently at that time and requirements were different in what the Department was required to maintain in an Adoption file. Proposed Completion Date: June 30, 2026 checking monthly to ensure paper files are scanned into Traverse.

View Audit 387325

Finding 1173476 (2025-002)

Material Weakness 2025

Milan Special School District

TN

Reporting School Nutrition Programs Subrecipient Monitoring § 200.403

Response and Corrective Action Plan prepared by: Leanne Green Person Responsible for Implementing the Corrective Action: Leanne Green Anticipated Completion Date of Corrective Action: Vickie Dunaway, School Nutrition Director, corrected and resubmitted the claim in question, as soon as the issue was...

Response and Corrective Action Plan prepared by: Leanne Green Person Responsible for Implementing the Corrective Action: Leanne Green Anticipated Completion Date of Corrective Action: Vickie Dunaway, School Nutrition Director, corrected and resubmitted the claim in question, as soon as the issue was revealed. USDA paid the difference owed on October 28, 2025. Planned Corrective Action: Once the School Nutrition Director completes the monthly claim, Leanne Green, Finance Director, reviews the paperwork, verifying that all is correct before the claim is filed.

View Audit 387221

Finding 1173387 (2025-001)

Material Weakness 2025

County of Marin

CA

HUD Housing Programs Material Weakness Internal Control / Segregation of Duties

Condition: The County did not perform required on-site inspections of four out of six HOME-assisted properties evaluated during FY 2025, as mandated by 24 CFR §§ 92.209(i), 92.251(f), and 92.504(d). These inspections are required every one to three years, depending on the number of units per project...

Condition: The County did not perform required on-site inspections of four out of six HOME-assisted properties evaluated during FY 2025, as mandated by 24 CFR §§ 92.209(i), 92.251(f), and 92.504(d). These inspections are required every one to three years, depending on the number of units per project. Recommendation: Establish and maintain a formal inspection schedule with assigned accountability to ensure timely completion of all required HOME inspections. Implement tracking tools and cross-training to mitigate delays caused by staff turnover. Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Action Planned in Response to Finding The County agrees with the finding and is implementing the following corrective actions to strengthen internal controls over HOME inspection compliance and ensure inspections are conducted in accordance with federal requirements. 1. Cross-Training of Inspection Staff Housing & Grants staff will conduct formal cross-training with inspectors from Environmental Health and/or the Marin Housing Authority by June 30, 2026. This training will cover HOME inspection requirements, including property standards, documentation expectations, and inspection frequency requirements. Cross-training will ensure sufficient technical expertise and backup coverage to perform and review HOME inspections in compliance with federal regulations and to maintain continuity during staffing changes.2. Implementation of Inspection Tracking Software The Community Development Agency will implement and utilize inspection tracking software by June 30, 2026 to track, schedule, and document HOME program inspections. The system will maintain inspection dates, inspection type (desk audit or physical), findings, corrective actions, and follow-up status. This tool will strengthen monitoring controls, provide management visibility, and help ensure inspections are conducted timely and consistently. 3. Conducting HOME Inspections in Accordance with HOME Regulations Housing & Grants staff will conduct HOME inspections in accordance with HOME program regulations by June 30, 2026, including both desk audits and physical inspections, as follows: • Desk Audits: Staff will review program documentation, tenant eligibility, income certifications, rent limits, and other compliance documentation using standardized desk audit procedures. • Physical Inspections: Physical property inspections will be performed in accordance with HOME property standards to assess health and safety compliance. • Monitoring and Documentation through JotForm Desk Audits: Desk audits will be documented using JotForm inspection and monitoring tools to ensure consistent documentation, clear audit trails, and management oversight of HOME compliance activities. 4. Formal Inspection Schedule and Ongoing Oversight The Community Development Agency has initiated development of a comprehensive HOME on-site inspection schedule that identifies all HOME-assisted properties, applicable inspection frequencies, and assigned staff responsibilities. The schedule will be maintained and reviewed at least quarterly by program management to ensure inspections are completed timely and any overdue inspections are promptly addressed. Responsible Officials • Leelee Thomas, Deputy Director, Community Development Agency Leelee.Thomas@marincounty.gov • Chris Miranda, Senior Program Coordinator, Community Development Agency Chris.Miranda@marincounty.gov Planned Completion Date All corrective actions described above are expected to be fully implemented by June 30, 2026.

View Audit 387062

Finding 1173337 (2025-001)

Material Weakness 2025

Mound Bayou Housing Authority

MS

Cash Management HUD Housing Programs Material Weakness § 200.305

Corrective Action Plan: Upon assuming the role of Executive Director in July 2024, it became clear that rent reasonableness studies were not being conducted under the previous administration, as required. Recognizing the importance of compliance with HUD regulations, I initiated the implementation o...

Corrective Action Plan: Upon assuming the role of Executive Director in July 2024, it became clear that rent reasonableness studies were not being conducted under the previous administration, as required. Recognizing the importance of compliance with HUD regulations, I initiated the implementation of a rent reasonableness policy and process. To support this effort, we entered into a contract with MRI to provide us with the rent reasonableness software. Last year we supplied MRI with the necessary property addresses and zip codes to begin the analysis. Due to the complexity of the implementation and the volume of data required, the setup process took time. We are now actively incorporating rent reasonableness determinations into all tenant files during annual recertifications and interims. With nearly 700 families in our program, this is an ongoing process, but significant progress has been made. Our team is fully committed to ensuring full compliance with HUD regulations, and we continue to work diligently toward that goal. In addition, to ensure continued compliance and to maintain the integrity of our files, the HCV Supervisor will be conducting weekly audits. This internal quality control measure helps us identify and address any inconsistencies or issues in a timely manner.

View Audit 386927

Finding 1173232 (2025-001)

Material Weakness 2025

Indian Town Home Association

IL

Internal Control / Segregation of Duties Material Weakness

Supportive Housing for the Elderly (Section 202) Mortgage Financing– FAL No. 14.157 Section 202 Project Rental Assistance Contract – FAL No. 14.157 Recommendation: When a lack of segregation of duties exists, management’s and the board’s close supervision and review of accounting information are the...

Supportive Housing for the Elderly (Section 202) Mortgage Financing– FAL No. 14.157 Section 202 Project Rental Assistance Contract – FAL No. 14.157 Recommendation: When a lack of segregation of duties exists, management’s and the board’s close supervision and review of accounting information are the best means of preventing or detecting errors and irregularities. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: Management will continue to monitor monthly financial results and accounting information as correction is not practical. Name(s) of the contact person(s) responsible for corrective action: Jennifer Medearis Planned completion date for corrective action plan: In process

View Audit 386709

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