Corrective Action Plans

Finding 1205396 (2024-003)

Material Weakness 2024

University of Maryland Medical System Corporation

MD

Subrecipient Monitoring Procurement, Suspension & Debarment Cash Management

H. Period of Performance Timely Payment of Financial Obligations Assistance Listing 93.959: Block Grants for Substance Use Prevention, Treatment, and Recovery Services Federal Agency: Department of Health and Human Services Recommendation: As the grant period has ended, we recommend that the Corpora...

H. Period of Performance Timely Payment of Financial Obligations Assistance Listing 93.959: Block Grants for Substance Use Prevention, Treatment, and Recovery Services Federal Agency: Department of Health and Human Services Recommendation: As the grant period has ended, we recommend that the Corporation works with the funding agency to remedy the period of performance noncompliance. In addition, we recommend that the Corporation reassess the design of its period of performance controls to identify where enhancement or additional controls are needed over liquidation of financial obligations subsequent to the end of a grant award. Explanation of disagreement with audit finding: There is no disagreement with the finding and recommendation. Action planned/taken in response to finding: The Corporation went live on its new ERP system in April 2024. Since go-live, management has continued to optimize the system and find ways to strengthen our internal controls, including automating certain processes. Management will continue to educate all grant managers on (1) the reporting capabilities within the system that can be utilized in the execution of monitoring payment status on individual invoices that have been submitted to granting agencies for reimbursement, and (2) the requirement to use their grant specific general ledger coding when orders are placed with vendors that are set up under the Corporation’s group purchasing process. For the specific vendor noted in Finding 2024-003, a grant number input field has been added to the group purchasing orders to allow for enhanced tracking and review of expenditures associated with grants and the monitoring of payment of those expenditures. The use of the accurate grant general ledger coding by grant managers when orders are placed will reduce the time between placement of order and payment of the invoice. The grant manager responsible for oversight of BHSB grants will work with BHSB to remedy the period of performance noncompliance noted in Finding 2024-003. Anticipated Completion Date – June 30, 2026 Name(s) of the contact person(s) responsible for corrective action: Jeff Chadwick, Financial Reporting Director, jeff.chadwick@umm.edu

View Audit 397083

Finding 1205006 (2024-001)

Material Weakness 2024

Innovative Health Solutions

CA

Material Weakness Reporting Internal Control / Segregation of Duties

Finding 2024-01 Internal Control Over Financial Reporting: Revenue Recognition. Management concurs with the finding. Innovative Health Solutions (IHS) began full implementation of GAAP reporting in FY2024/25. The Fiscal Policy Manual was updated during FY2024/25 to incorporate GAAP revenue recogniti...

Finding 2024-01 Internal Control Over Financial Reporting: Revenue Recognition. Management concurs with the finding. Innovative Health Solutions (IHS) began full implementation of GAAP reporting in FY2024/25. The Fiscal Policy Manual was updated during FY2024/25 to incorporate GAAP revenue recognition criteria for various revenue streams. IHS will continue to review and refine its accounting policies and procedures as it transitions some of its financial reporting and audit support functions to a new outside CPA firm specializing in nonprofit services beginning July 1, 2025.

View Audit 396668

Finding 1205003 (2024-006)

Material Weakness 2024

The City of Frederick, Maryland

MD

Subrecipient Monitoring Reporting Material Weakness

Finding reference: 2024-006 - 93.137 – Community Programs to Improve Minority Health Grant Program Material Weakness and Noncompliance over Reporting - FFATA Recommendation: We recommend the City establish and implement controls to maintain compliance with reporting requirements. Action taken: In ad...

Finding reference: 2024-006 - 93.137 – Community Programs to Improve Minority Health Grant Program Material Weakness and Noncompliance over Reporting - FFATA Recommendation: We recommend the City establish and implement controls to maintain compliance with reporting requirements. Action taken: In addition to hiring a grant manager to oversee compliance, the City has purchased OpenGov grant software to ensure compliance, monitoring and the insurance of timely submissions in accordance with the grant. This system is designed to send notifications of reporting requirements prior to the due date.

View Audit 396662

Finding 1205000 (2024-010)

Material Weakness 2024

The City of Frederick, Maryland

MD

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

Finding reference: 2024-010 - 93.224, 93.527 – Health Center Program Cluster Material Weakness and Noncompliance over Special Tests and Provisions Recommendation: All elements required for the sliding fee discount should be properly maintained in Allscripts. Employees should be properly trained on t...

Finding reference: 2024-010 - 93.224, 93.527 – Health Center Program Cluster Material Weakness and Noncompliance over Special Tests and Provisions Recommendation: All elements required for the sliding fee discount should be properly maintained in Allscripts. Employees should be properly trained on the software, and a user manual should be created related to patient intake so patient records are consistent and documented appropriately. Action taken: All elements required for the sliding fee discount are being properly maintained. All employees have been properly trained in software.

View Audit 396662

Finding 1190872 (2024-001)

Material Weakness 2024

St. John's Lutheran Home of Albert Lea

MN

Material Weakness Reporting Internal Control / Segregation of Duties

St. John’s Lutheran Home of Albert Lea submits the following corrective action plan for the year ended September 30, 2024. Name and address of independent public accounting firm: Lethert, Skwira, Schultz & Co. LLP, 170 E 7th Place, Saint Paul, MN 55101 Audit period: October 1, 2023 – September 30, 2...

St. John’s Lutheran Home of Albert Lea submits the following corrective action plan for the year ended September 30, 2024. Name and address of independent public accounting firm: Lethert, Skwira, Schultz & Co. LLP, 170 E 7th Place, Saint Paul, MN 55101 Audit period: October 1, 2023 – September 30, 2024 The findings from the September 30, 2024 schedule of findings, questioned costs and recommendations. FINDINGS - FINANCIAL STATEMENT AUDIT Finding 2024-001 - Auditor Preparation of the Financial Statements Material Weakness Finding Summary: The Organization does not have an internal control system designed to provide for the preparation of the complete consolidated financial statements, including the accompanying footnotes, as required by GAAP. We were also requested to draft the financial statements and accompanying notes to the financial statements. Corrective Action Plan: It is not cost effective to have an internal control system designed to provide for the preparation of financial statements and accompanying notes. We requested that our auditors Lethert, Skwira, Schultz & Co. LLP, prepare the financial statements and the accompanying notes to the financial statements as a part of their annual audit. We have designated a member of management to review the drafted financial statements and accompanying notes. Responsible Individuals: Heather King, Director of Finance, 507-473-1066 Anticipated Completion Date: Ongoing

View Audit 395160

Finding 1187257 (2024-004)

Material Weakness 2024

Town of Brookline

MA

Reporting Material Weakness

Audit Finding Reference: 2024-004 Improve Internal Controls Over Reporting Planned Corrective Action: The Town will establish and implement formal procedures to ensure quarterly reports submitted to the federal agency are reconciled to the general ledger, subject to a documented independent review, ...

Audit Finding Reference: 2024-004 Improve Internal Controls Over Reporting Planned Corrective Action: The Town will establish and implement formal procedures to ensure quarterly reports submitted to the federal agency are reconciled to the general ledger, subject to a documented independent review, and support by retained source documentation. Planned Implementation Date of Corrective Action: The revenue loss calculation was corrected on April 23, 2025, effective with the Quarter 1, 2025 (January–March) reporting period. The independent review process will begin on January 30, 2026.

View Audit 394853

Finding 1187240 (2024-003)

Material Weakness 2024

Rebuilding Together South Sound

WA

Allowable Costs / Cost Principles Material Weakness

This is a reiteration of Finding 2024-002. Please refer to corrective action plan under Finding 2024-002. Management will review procedures and adopt a system to adequately document and retain approval of disbursements.

View Audit 394851

Finding 1186678 (2024-002)

Material Weakness 2024

CITY OF ANGOON

AK

Reporting Material Weakness § 200.512

We concur with the recommendation. The City of Angoon has diligently worked to meet the Uniform Guidance requirement of submitting the reporting package within the earlier of 30 days after the receipt of the audit report, or the nine (9) months after the end of the audit period. The Fiscal year endi...

We concur with the recommendation. The City of Angoon has diligently worked to meet the Uniform Guidance requirement of submitting the reporting package within the earlier of 30 days after the receipt of the audit report, or the nine (9) months after the end of the audit period. The Fiscal year ending 06/25/2025 will be submitted timely, as well as all future audits. An external accountant was hired to help train and oversee the city accounting staff which has allowed the accounting records to easily be prepared for future audits.

View Audit 394385

Finding 1182297 (2024-004)

Material Weakness 2024

The Order of Fishermen Ministry Head Start Program, Inc.

MI

Subrecipient Monitoring Allowable Costs / Cost Principles Material Weakness § 200.303

TOFMHS concurs with the finding. There was turnover in the finance department, moving forward TOFMHS will implement adequate and sufficient internal controls to ensure that approvals charged to the grant are reviewed and approved by authorized members of TOFMHS. Responsible Person: Fiscal Officer/Pr...

TOFMHS concurs with the finding. There was turnover in the finance department, moving forward TOFMHS will implement adequate and sufficient internal controls to ensure that approvals charged to the grant are reviewed and approved by authorized members of TOFMHS. Responsible Person: Fiscal Officer/Program Director Completion Date: January 1, 2025

View Audit 393724

Finding 1182294 (2024-003)

Material Weakness 2024

The Order of Fishermen Ministry Head Start Program, Inc.

MI

Subrecipient Monitoring Material Weakness Reporting § 200.501 § 200.512 § 200.514

TOFMHS concurs with the finding. The agency retained new auditors for the June 30,2024 fiscal year, subsequent to the due date for submission of the data collection reports. Corrective Action to be Taken: The Agency will take all reasonable measures to work with the new auditors to complete the audi...

TOFMHS concurs with the finding. The agency retained new auditors for the June 30,2024 fiscal year, subsequent to the due date for submission of the data collection reports. Corrective Action to be Taken: The Agency will take all reasonable measures to work with the new auditors to complete the audit process and submit the data collection report within the required time period. Responsible Person: Fiscal Officer/Program Director Completion Date: January 1, 2025

View Audit 393724

Finding 1181623 (2024-001)

Material Weakness 2024

Sun'aq Tribe of Kodiak

AK

Reporting Material Weakness § 200.512

Finding 2024-001 Late Reporting and Noncompliance with Reporting Requirements Name of Contact: Charise Colsen, Finance Director Corrective Action Plan: A timeline will be established for year-end closing and preparation for the annual audits in a manner that accommodates meeting the nine-month audit...

Finding 2024-001 Late Reporting and Noncompliance with Reporting Requirements Name of Contact: Charise Colsen, Finance Director Corrective Action Plan: A timeline will be established for year-end closing and preparation for the annual audits in a manner that accommodates meeting the nine-month audit submission requirement. Proposed Completion Date: Month XX, 2026

View Audit 392893

Finding 1181622 (2024-010)

Material Weakness 2024

North Valley County Water and Sewer District

MT

Reporting Material Weakness Matching / Level of Effort / Earmarking § 200.303 § 200.328

The district will create an SOP for the reporting process, including reviewing procedures to ensure accuracy of reporting periods. The district will also create and maintain an SOP for maintaining supporting documentation in the reporting package for all amounts and keeping staff trained on these SO...

The district will create an SOP for the reporting process, including reviewing procedures to ensure accuracy of reporting periods. The district will also create and maintain an SOP for maintaining supporting documentation in the reporting package for all amounts and keeping staff trained on these SOPs.

View Audit 392890

Finding 1181620 (2024-008)

Material Weakness 2024

North Valley County Water and Sewer District

MT

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

The Board of Directors for the district will be monitoring all filing to be able to account for documentation available within the district. Also, there will be implementing document control procedures for all costs and invoices within the district.

View Audit 392890

Finding 1181480 (2024-009)

Material Weakness 2024

Community Action Committee of the Lehigh Valley, Inc. and Subsidiaries

PA

Subrecipient Monitoring Material Weakness Reporting § 200.327 § 200.328 § 200.334

U.S. Department of Treasury • Material Weakness in Internal Control over Compliance Coronavirus State and Local Fiscal Recovery Funds – Assistance Listing No. 21.027 Condition: During audit testing of financial reporting for the Coronavirus State and Local Fiscal Recovery Funds program, the Organiza...

U.S. Department of Treasury • Material Weakness in Internal Control over Compliance Coronavirus State and Local Fiscal Recovery Funds – Assistance Listing No. 21.027 Condition: During audit testing of financial reporting for the Coronavirus State and Local Fiscal Recovery Funds program, the Organization was unable to locate three of ten financial reports requested for review. As a result, auditors were unable to verify the accuracy, completeness, or timeliness of the reported financial information for those reporting periods. Recommendation: The Organization should strengthen internal controls over financial reporting and record retention by establishing clear procedures to ensure that all required reports are accurately prepared, timely submitted, and retained in accordance with federal requirements. Management should designate responsible personnel and implement monitoring procedures to verify compliance with reporting and documentation standards. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The Organization will require that all supporting documentation related to financial reporting—including reports, source data, approvals, and correspondence—be retained electronically within Sage Intacct using standardized attachment and naming conventions. Management will implement periodic monitoring procedures, including supervisory review and internal spot checks, to verify that reports are timely submitted and that documentation is properly retained in Sage Intacct in accordance with applicable federal record-retention requirements. Name(s) of the contact person(s) responsible for corrective action: Dawn Godshall, Executive Director Planned completion date for corrective action plan: Planned completion date is June 30, 2025.

View Audit 392710

Finding 1181459 (2024-007)

Material Weakness 2024

Community Action Committee of the Lehigh Valley, Inc. and Subsidiaries

PA

Allowable Costs / Cost Principles Period of Performance Material Weakness § 200.403

U.S. Department of Health and Human Services • Material Weakness in Internal Control over Compliance Community Service Block Grant – Assistance Listing No. 93.569 Condition: During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending da...

U.S. Department of Health and Human Services • Material Weakness in Internal Control over Compliance Community Service Block Grant – Assistance Listing No. 93.569 Condition: During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/23/23 - 1/5/24, which the first nine days were prior to the start of the period of performance. Recommendation: The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The Organization will strengthen internal controls over the recording of grant-related invoices and payroll expenditures by requiring expenses to be recorded based on the actual date services are incurred rather than invoice date or payroll period end date. Finance staff will be retrained on period-of-performance requirements for federal programs, and a secondary review will be implemented for all federal grant postings to verify proper timing prior to submission for reimbursement or drawdown. Name(s) of the contact person(s) responsible for corrective action: Dawn Godshall, Executive Director Planned completion date for corrective action plan: Planned completion date is June 30, 2025.

View Audit 392710

Finding 1180824 (2024-003)

Material Weakness 2024

Porchlight, Inc.

WI

Procurement, Suspension & Debarment Material Weakness Period of Performance

Management agrees with the finding and has implemented corrective actions to improve documentation, grant tracking, and compliance processes. Grant transactions are now recorded and tracked within Sage Intacct using appropriate invoice dates and general ledger posting dates to ensure that expenses a...

Management agrees with the finding and has implemented corrective actions to improve documentation, grant tracking, and compliance processes. Grant transactions are now recorded and tracked within Sage Intacct using appropriate invoice dates and general ledger posting dates to ensure that expenses are recorded within the correct period of performance for each grant. Sage Intacct provides detailed grant reporting capabilities, allowing the organization to generate transaction‐level reports for individual grants. Documentation procedures have also been strengthened. Supporting documentation for expense transactions is attached directly to transactions within Sage Intacct and is also stored in organized files on Porchlight’s internal server to ensure documentation is readily available for review and audit purposes. Procurement approvals and related documentation are retained within Sage Intacct on a transactional level, archived email records, and internal file storage, ensuring that approvals are documented and accessible. The Financial Director is currently responsible for preparing and submitting grant performance reports. Porchlight is also in the process of recruiting a staff Grants Manager to further strengthen grant management, monitoring, and reporting responsibilities. Porchlight maintains a grant reporting calendar and tracking system, which is maintained electronically on the organization's internal server to ensure that all reporting deadlines are monitored and met. Grant documentation is now maintained in centralized and organized compliance files on the internal server, allowing staff and auditors to easily access grant documentation and supporting records. Management will continue to monitor grant compliance processes and documentation procedures to ensure ongoing compliance with funding requirements and reporting obligations. Person(s) Responsible: Halle Pollay Timing for Implementation: In process

View Audit 392484

Finding 1180822 (2024-001)

Material Weakness 2024

Porchlight, Inc.

WI

Reporting Procurement, Suspension & Debarment Material Weakness

Management agrees with the finding and has implemented several corrective actions to strengthen internal controls and financial reporting processes. Porchlight implemented new accounting software in 2025, Sage Intacct, which includes a grants dimension that allows the organization to track financial...

Management agrees with the finding and has implemented several corrective actions to strengthen internal controls and financial reporting processes. Porchlight implemented new accounting software in 2025, Sage Intacct, which includes a grants dimension that allows the organization to track financial activity by individual grant and sub‐grant at the transaction level. This system enables the preparation of detailed grant‐level financial reports, including profit and loss statements for individual grants. Internal accounting working papers further document detailed line‐item tracking instructions of grant revenues and expenditures. These processes provide improved transparency and audit support for grant expenditures. Indirect costs are now allocated using a nights‐of‐shelter allocation methodology, which is consistent with guidance provided by Porchlight’s government partner organizations. This methodology has been documented and is applied consistently across applicable programs. Monthly reconciliations of significant general ledger accounts are now performed and documented on a regular basis. These reconciliations are reviewed by the Executive Director, who is currently completing additional training in our new accounting processes to further support this oversight function. Management will continue monitoring the reconciliation process to ensure it is completed in a timely and consistent manner. Journal entries will be reviewed on a monthly basis during scheduled meetings between the Executive Director and the Finance Director to ensure proper documentation and approval. Cash disbursement controls have also been strengthened. Accounts Payable staff prepare a weekly payment list, which is reviewed and approved by the Finance Director. The Executive Director then performs a secondary review and signs checks or approves payments. ACH transactions are submitted to the bank by the AP accountant, and require final authorization through the bank’s online system by either the Executive Director, or the Finance Director when the Executive Director is unavailable. These procedures provide documented authorization of cash disbursements. Consistent financial reporting to the Board is in the final processes. The reporting component of the Sage Intacct implementation has required additional refinement, and we are working with outside consultants who are familiar with our specific system setup to ensure reporting processes operate effectively. Financial reports will be presented to the Board of Directors Finance Committee, which meets with the Executive Director and Finance Director every two months to review financial performance and discuss financial results. Financial statements will be prepared internally prior to the audit, which improves management oversight and reduces the need for audit adjustments. Additionally, Porchlight has significantly strengthened its finance department staffing. A new Finance Director began full‐time employment in June 2024. New Accounts Payable and Accounts Receivable accountants, as well as accounting assistants, have been hired and trained on Porchlight’s financial procedures and Sage Intacct. External accounting consultants have also been engaged to assist with audit preparation, reconciliations, and other accounting functions when additional capacity is needed. Management will continue to evaluate internal controls and financial reporting processes to ensure compliance with applicable financial reporting and grant requirements. Person(s) Responsible: Halle Pollay Timing for Implementation: In Process

View Audit 392484

Finding 1179687 (2024-002)

Material Weakness 2024

American Museum of Science and Energy Foundation, Inc.

TN

Allowable Costs / Cost Principles Cash Management Material Weakness § 200.400

As part of the proposal negotiations for the federal program, initial discussions with the sponsoring office of the federal program included a limitation for allowable compensation for employees that were not the Executive Director. Although the limitation was intended to be removed from the final a...

As part of the proposal negotiations for the federal program, initial discussions with the sponsoring office of the federal program included a limitation for allowable compensation for employees that were not the Executive Director. Although the limitation was intended to be removed from the final agreement, the budgeted requested salaries were not updated. The Assistance Agreement has been modified to remove any such limitation prospectively beginning with Modification 0015 in April 2024. Implementation Date – April 2025

View Audit 392153

Finding 1179686 (2024-001)

Material Weakness 2024

American Museum of Science and Energy Foundation, Inc.

TN

Cash Management Material Weakness Reporting § 200.512

As is touched upon in the Cause, the Organization was unaware of audit requirements which resulted in delays for both the audit of the period ending December 31, 2023 and the audit of the year ending December 31, 2024. The Organization has engaged our current auditors to perform the 2025 audit, and ...

As is touched upon in the Cause, the Organization was unaware of audit requirements which resulted in delays for both the audit of the period ending December 31, 2023 and the audit of the year ending December 31, 2024. The Organization has engaged our current auditors to perform the 2025 audit, and it is expected to be completed by the September 30, 2026 deadline. Implementation Date – January 2026

View Audit 392153

Finding 1179560 (2024-005)

Material Weakness 2024

Economic Action Committee of the Gulf Coast

TX

Subrecipient Monitoring Material Weakness Reporting § 200.302 § 200.303 § 200.334

Finding 2024-005 - Major Program – Reporting Support and Review Corrective Action Plan: Procedures will be implemented to:  Retain detailed support for all Federal reports, including reconciliations to the general ledger  Require documented supervisory review prior to submission  Maintain documen...

Finding 2024-005 - Major Program – Reporting Support and Review Corrective Action Plan: Procedures will be implemented to:  Retain detailed support for all Federal reports, including reconciliations to the general ledger  Require documented supervisory review prior to submission  Maintain documentation of adjustments occurring after report submission  Establish standardized reporting workpapers for each reporting period Responsible Party: Fiscal Officer (preparation), Executive Director (review and approval) Planned Completion Date: Effective March 11, 2026; procedures implemented for all future reports.

View Audit 391938

Finding 1179531 (2024-006)

Material Weakness 2024

Restoration Christian Ministries

CO

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.302 § 200.305 § 200.317 § 200.318 § 200.327

Finding Number: 2024-006 Finding Title: Financial Policies and Procedures Federal Program Information: • Federal Agency: Department of Housing and Urban Development; Department of the Treasury • Assistance Listing Numbers (ALN): 14.251 and 21.027 • Federal Program Names: Economic Development Initiat...

Finding Number: 2024-006 Finding Title: Financial Policies and Procedures Federal Program Information: • Federal Agency: Department of Housing and Urban Development; Department of the Treasury • Assistance Listing Numbers (ALN): 14.251 and 21.027 • Federal Program Names: Economic Development Initiatives—Special Project, Neighborhood Initiative and Neighborhood Stabilization Program; Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Financial Management and Standards of Financial Management Systems (2 CFR §200.302(b)); Allowable Costs (2 CFR §200.403-405); Procurement (2 CFR §200.317-327); Cash Management (2 CFR §200.305); Travel Costs (2 CFR §200.475) Note: Organization has existing Conflict of Interest policy in compliance with 2 CFR §200.318(c)(1). Questioned Costs: $0 Repeat Finding: No Management's Response: The Board of Directors of Restoration Christian Ministries agrees with the finding. The Organization will establish formalized accounting policies and procedures that adhere to the requirements of the Uniform Guidance. Corrective Action Plan: Corrective Action #1: Comprehensive Policy Manual Development • Action: Engage consultant or work with Contract Accountant to develop comprehensive written financial policies and procedures manual addressing all Uniform Guidance requirements, including: (a) Allowable costs (2 CFR §200.403-405); (b) Procurement (2 CFR §200.317-327); (c) Cash management (2 CFR §200.305); (d) Travel costs (2 CFR §200.475); (e) Time and effort documentation; (f) Equipment management; (g) Subrecipient monitoring; (h) Financial reporting; and (i) Record retention. Ensure policies address financial management system requirements under 2 CFR §200.302. Tailor policies to Organization's all-volunteer structure. [Note: Organization already has Conflict of Interest policy complying with 2 CFR §200.318(c)(1).] • Responsible Person/Title: Board Treasurer with Contract Accountant • Anticipated Completion Date: April 30, 2026 Corrective Action #2: Board Approval and Adoption • Action: Present draft policies to full Board of Directors for review and input. Board will formally adopt policies by resolution. Document approval in Board meeting minutes. • Responsible Person/Title: Board President • Anticipated Completion Date: May 31, 2026 Corrective Action #3: Dissemination and Training • Action: Distribute approved policies to all Board members and Contract Accountant. Conduct training session for Board members and Contract Accountant on new policies and procedures. Board members and Contract Accountant will sign acknowledgment of receipt and understanding. Make policies readily accessible (e.g., shared drive, Board portal). • Responsible Person/Title: Board President • Anticipated Completion Date: June 30, 2026 Corrective Action #4: Implementation Tools and Support • Action: Develop templates, forms, and tools to support policy implementation. Create workflow diagrams and checklists for common transactions. Establish Board Treasurer as primary resource for policy implementation questions. • Responsible Person/Title: Board Treasurer and Contract Accountant • Anticipated Completion Date: July 31, 2026 Corrective Action #5: Annual Policy Review Process • Action: Schedule annual review of policies to ensure continued Uniform Guidance compliance. Update policies as needed for regulatory or organizational changes. Submit material policy changes to full Board for approval. • Responsible Person/Title: Board Treasurer • Anticipated Completion Date: Annually, beginning June 2027 Corrective Action #6: Governance Structure Assessment • Action: Board will evaluate establishing Audit Committee or combined Finance/Audit Committee to provide enhanced oversight of financial management, internal controls, and federal compliance. If Board size prohibits separate committee, designate at least two Board members with specific oversight responsibilities. • Responsible Person/Title: Board President • Anticipated Completion Date: June 30, 2026

View Audit 391915

Finding 1179128 (2024-002)

Material Weakness 2024

County of Hancock, Maine

ME

Subrecipient Monitoring Material Weakness

Name of contact person: Michael Crooker, County Administrator Corrective Action: The County will develop and implement a subrecipient monitoring program. Proposed implementation date: The corrective action plan will be implemented as soon as possible.

View Audit 391523

Finding 1179073 (2024-006)

Material Weakness 2024

City of Lincoln Park, Michigan

MI

Reporting Cash Management Material Weakness § 200.502 § 200.510

The City will ensure that all future expenditures are tracked and reported to the proper periods and recorded appropriately.

View Audit 391505

Finding 1179072 (2024-005)

Material Weakness 2024

City of Lincoln Park, Michigan

MI

Subrecipient Monitoring Material Weakness Reporting § 200.510

The City will ensure that all future awards under this program are in compliance and separately report on the Schedule of Expenditures of Federal Awards. All pass-through expenditures will be reconciled to ensure accuracy going forward.

View Audit 391505

Finding 1177663 (2024-003)

Material Weakness 2024

Lake County, Colorado

CO

Internal Control / Segregation of Duties Subrecipient Monitoring Material Weakness

2024-003: Noncompliance and Material Weakness in Internal Controls Over the Reporting Requirement Federal Assistance Listing Number(s): 21.027, 21.032 Program Title: Coronavirus State and Local Fiscal Recovery Funds (SLFRF) and Local Assistance and Tribal Consistency Fund Federal Award Year: 2022-20...

2024-003: Noncompliance and Material Weakness in Internal Controls Over the Reporting Requirement Federal Assistance Listing Number(s): 21.027, 21.032 Program Title: Coronavirus State and Local Fiscal Recovery Funds (SLFRF) and Local Assistance and Tribal Consistency Fund Federal Award Year: 2022-2023 Name of Federal Agency: U.S. Department of Treasury Name of pass-through entity: Direct, Colorado Department of Local Affairs, and various COVID-19 Program: Yes Federal Program: Coronavirus State and Local Fiscal Recovery Funds and Local Assistance and Tribal Consistency Fund Problem: Several required quarterly and one annual grant reports were not submitted by the required deadlines, resulting in noncompliance with grant program requirements and indicating deficiencies in internal controls over reporting in accordance with 2 CFR 200.303. Actions Steps: Creation of a Lake County Grant Policy establishing standardized processes for the application, administration, tracking, and reporting of federally awarded funds to address internal control requirements under 2 CFR 200. This framework is also applied to all other grant funding sources (federal, state, and private) to ensure consistency and oversight. Status: New Lake County Financial Policies and Procedures, including grant application, management, tracking, and reporting requirements, were adopted in 2025. These policies strengthen internal controls, support ongoing compliance with 2 CFR 200, and provide continuous managerial oversight of awarded funds. Dates: January 2025 Goal: To accurately and reliably manage and report on all granted funds awarded to Lake County Government.

View Audit 391078

Corrective Action Plans

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