Corrective Action Plans

Finding 1240245 (2025-005)

Material Weakness 2025

AR

Allowable Costs / Cost Principles Cash Management Material Weakness § 200.430

Federal Program / Assistance Listing Number (ALN) 84.031 Finding Reference Number 2025-005 1. Finding Summary The auditor noted exceptions in payroll cost allocations and time and effort reporting in testing over the Title III program. 2. Management's Position Management agrees with the finding. Man...

Federal Program / Assistance Listing Number (ALN) 84.031 Finding Reference Number 2025-005 1. Finding Summary The auditor noted exceptions in payroll cost allocations and time and effort reporting in testing over the Title III program. 2. Management's Position Management agrees with the finding. Management Explanation Management agrees with the finding and acknowledges that the exceptions related to two (2) Title III employees who need additional training on how to properly complete the relevant forms. 3. Root Cause Analysis The root cause was a gap in understanding of how the time and effort form should be completed and how the payroll cost allocation change should be documented on the personnel action form. 4. Corrective Action(s) Management will offer training on the completion of time and effort reports as well as work with Human Resources to ensure all payroll allocations are actually reflected on hiring documents. Description of Corrective Actions To address this finding and prevent recurrence, the University will strengthen procedures to ensure payroll allocations are supported by approved personnel records and reconciled to certified time and effort documentation. These procedures and reporting controls will be routinely evaluated and reinforced through staff training and management oversight to support sustained compliance and accurate federal reporting. 5. Risk Mitigation (Required - Even if Disagreeing) The University institution recognizes the importance of accurate documentation to support payroll allocations. Accordingly, the corrective actions described above are designed to ensure adequate training and review to ensure compliance and accurate reporting. 6. Responsible Party • Office/Department: Title III Office • Title of Responsible Official: Interim Title III Director • Name (optional): ____________ _ 7. Implementation Timeline • Corrective action implemented: D Yes ~ No • If not fully implemented, expected completion date: December 31, 2026 8. Status of Corrective Action (For Prior-Year or Repeat Findings) D Fully implemented D Partially implemented D Not yet implemented Evidence of Implementation In progress, evidence is not yet available. 9. Monitoring and Sustainability The University will monitor compliance through ongoing supervisory review of payroll allocations and time and effort reports. Review procedures will be routinely evaluated and reinforced through staff training and management oversight to support sustained compliance and accurate federal reporting.

View Audit 414825

Finding 1240243 (2025-003)

Material Weakness 2025

Philander Smith College

AR

Reporting Subrecipient Monitoring Material Weakness § 200.512 § 200.520

Institution Name Philander Smith University Fiscal Year Ended June 30, 2025 Federal Program / Assistance Listing Number (ALN) Finding Reference Number 2025-003 1. Finding Summary The auditor noted that the University did not submit is audit reporting package and data collection form to the Federal A...

Institution Name Philander Smith University Fiscal Year Ended June 30, 2025 Federal Program / Assistance Listing Number (ALN) Finding Reference Number 2025-003 1. Finding Summary The auditor noted that the University did not submit is audit reporting package and data collection form to the Federal Audit Clearinghouse within the time frame required. 2. Management’s Position Management agrees with the finding. Management Explanation Management agrees with the finding and acknowledges that the identified condition resulted from staffing vacancies and timing delays in the annual audit caused by limited staff. 3. Root Cause Analysis The root cause was staffing vacancies which has caused the University to fall behind on key reconciliations and month-end close processes. With fewer personnel, existing staff had to take on additional responsibilities which has caused slower turnaround times for day-to-day duties. Although staff are cross-trained where appropriate, vacancies disrupt normal workflows. 4. Corrective Action(s) Management is working to fill vacancies and also further cross-train staff. The University is also considering how to best engage temporary staff based on funding available from vacancies. The University acknowledges that although month-end workflows are in place, monitoring needs to be strengthen, especially during peak times. Finally, the University is investing in a new cloud-based Enterprise Resource Planning (ERP) software designed for higher education institutions, Ellucian Colleague, which should automate more business processes and reconciliations. Description of Corrective Actions The University has recently hired a Controller, a position which has been vacant for some time. The Controller will work to strengthen month-end workflows, staff training, and to fill remaining vacancies. 5. Risk Mitigation (Required — Even if Disagreeing) The University institution recognizes the importance of mitigating compliance risk in this area. Accordingly, the corrective actions described above are designed to reduce the risk of inconsistent documentation, misinterpretation of regulatory requirements, and future audit findings. 6. Responsible Party • Office/Department: Business Office • Title of Responsible Official: Vice President for Fiscal Affairs • Name (optional): _____________________________ 7. Implementation Timeline • Corrective action implemented: ☒ Yes ☐ No • If not fully implemented, expected completion date: December 31, 2026 8. Status of Corrective Action (For Prior-Year or Repeat Findings) ☐ Fully implemented ☐ Partially implemented ☐ Not yet implemented Evidence of Implementation Hiring documentation for the Controller. 9. Monitoring and Sustainability The University will conduct quarterly internal reviews of month-end close commencing the period ending June 30, 2026 to monitor progress with audit preparation which will ensure timely Federal Audit Clearinghouse submission. 10. Management Certification I certify that the information provided above is accurate and represents management’s corrective action plan for the audit finding identified. Signature: ________________________________________________ Name: __LaTonya Hayes_____________________________________ Title: ___Interim CFO_______________________________________ Email: __lhayes@philander.edu_______________________________ Phone: __(501) 370-5341____________________________________ Date: ___9/17/2026__________________________________________

View Audit 414825

Finding 1240091 (2025-003)

Material Weakness 2025

Cornerstone Rescue Mission

SD

Internal Control / Segregation of Duties Material Weakness Reporting § 200.303 § 200.328 § 200.329

Federal Agency Name: Department of Veterans Affairs Assistance Listing Number: 64.003 Program Name: VA Supportive Services for Veteran Families Program Compliance Requirement: Reporting Finding Summary: No review and approval processes were in place over 2 quarterly progress reports. Corrective Acti...

Federal Agency Name: Department of Veterans Affairs Assistance Listing Number: 64.003 Program Name: VA Supportive Services for Veteran Families Program Compliance Requirement: Reporting Finding Summary: No review and approval processes were in place over 2 quarterly progress reports. Corrective Action Plan: Management has implemented procedures and control processes to incorporate an independent review and approval over quarterly reporting effective for the quarterly report ending June 30, 2025. Responsible Individuals: Teena Conrad, SSVF Program Manager, Lysa Allison, Executive Director and Christina Thoelke, Business Manager Anticipated Completion Date: June 2025

View Audit 414712

Finding 1240002 (2025-001)

Material Weakness 2025

Traffick911

TX

Allowable Costs / Cost Principles Cash Management Material Weakness

Corrective Action: Management determined that a breakdown in the manual invoice verification workflow allowed duplicate health insurance transactions to be processed and submitted for reimbursement. Upon discovering the duplicate entries in May 2026, management conducted a comprehensive review of el...

Corrective Action: Management determined that a breakdown in the manual invoice verification workflow allowed duplicate health insurance transactions to be processed and submitted for reimbursement. Upon discovering the duplicate entries in May 2026, management conducted a comprehensive review of eligible expenditures incurred during the applicable grant periods. The review identified $102,713 in eligible program costs that had been incurred but had not previously been billed. This included $100,462 applicable to closed grant 3245806, $1,666 applicable to open grant 3245807, and $585 applicable to open grant 5325201. After accounting for these eligible, previously unbilled expenditures, the remaining variance was $45,643. The $45,643 remaining variance, associated with October, November, and December 2025 billings, was deferred and applied to allowable billings in June 2026. Traffick911 has implemented corrective measures to strengthen financial controls and prevent recurrence. The organization has hired new finance staff, contracted with a PEO to manage payroll and benefits, and instituted a monthly reconciliation of medical insurance expenses against payroll reports to ensure ongoing accuracy. Name of Contact Person: Danielle Upton, Chief Administrative Officer, (214) 685-5850, danielle@traffick911.com Projected Completion Date: Initial billing corrections were successfully finalized in June 2026. Additional oversight and internal controls regarding medical insurance expenses are on track for full implementation by December 31, 2026.

View Audit 414625

Finding 1239963 (2025-227)

Material Weakness 2025

State of Idaho

ID

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303

Finding Number 2025-227: The Division does not have documented control procedures in place to ensure compliance with period of performance requirements for the Rehabilitation Services-Vocational Rehabilitation Grants to States. Federal Program: 84.126 - Rehabilitation Services - Vocational Rehabilit...

Finding Number 2025-227: The Division does not have documented control procedures in place to ensure compliance with period of performance requirements for the Rehabilitation Services-Vocational Rehabilitation Grants to States. Federal Program: 84.126 - Rehabilitation Services - Vocational Rehabilitation Grants to States Related to Prior Finding: N/A Agency’s view: The agency agrees with this finding. IDVR acknowledges that the controls during the audit period were insufficient to ensure expenditures were consistently allocated to the correct federal award period. Corrective Action: Since November 2025, IDVR has implemented a comprehensive period-of-performance review process designed to ensure compliance with federal grant requirements. As part of this process, the Strategic Leadership Team reviews and determines when obligations should transition between federal fiscal year awards. Based on this direction, IDVR Data Manager updates system configurations and budget parameters within the AWARE case management system to ensure expenditures are assigned to the correct federal award. In addition, IDVR implemented a testing process in which the Data Manager and Program Analyst verify that expenditures are coding appropriately following budget updates. IDVR has also incorporated period-of-performance reviews into its quality assurance and compliance review process for case service expenditures. Invoice batches are reviewed before liquidation, or reimbursement requests are submitted to ensure expenditures are allocated to the proper grant award. These reviews are conducted by Quality Assurance and Compliance Analysts, Financial Specialists, the Financial Officer, and, when appropriate, Agency leadership, including the Deputy Administrator and Administrator. Through these layered review processes, IDVR has established documented internal controls designed to ensure compliance with period-of-performance requirements and has successfully utilized these controls since implementation as evidenced by approved RSA reimbursements of expenditures based upon both period of performance and allowability reviews completed by RSA on all expenditures reimbursed as required under route payment that IDVR has been engaged in with RSA since October 2024. IDVR is in the process of obtaining approval from RSA within drafted Grant’s Management Chapters for the policies, procedures and internal controls related to assurances of proper grant assignment based upon period of performance. Once approval is provided, IDVR will finalize, implement, and train on the approved policies, procedures, and internal controls that align with processes already in practice as of November 2025. Anticipated Corrective Action Date: January 30, 2027 Responsible for Corrective Action: Heidi Smith, Financial Officer Heidi.Smith@vr.idaho.gov (208) 287-6457

View Audit 414614

Finding 1239961 (2025-225)

Material Weakness 2025

State of Idaho

ID

Material Weakness Reporting Matching / Level of Effort / Earmarking § 200.302 § 200.303

Finding Number 2025-225: The Division could not provide supporting documentation for amounts reported on the Rehabilitation Services Administration (RSA) reports required under the Rehabilitation Services-Vocational Rehabilitation Grants to States. Federal Program: 84.126 - Rehabilitation Services -...

Finding Number 2025-225: The Division could not provide supporting documentation for amounts reported on the Rehabilitation Services Administration (RSA) reports required under the Rehabilitation Services-Vocational Rehabilitation Grants to States. Federal Program: 84.126 - Rehabilitation Services - Vocational Rehabilitation Grants to States Related to Prior Finding: N/A Agency’s view: IDVR agrees that retention of supporting documentation aligned with the RSA-17 report submitted to RSA is necessary to ensure adequate documentation of the completed reports is created and maintained to support the submission. Corrective Action: IDVR has completed significant work to complete restatements of the RSA-17 for FFY2019-2024. These restatements have been accepted by the RSA Fiscal Unit and the reports were updated in RSAMIS by RSA after this process was completed in Spring 2026. With the restatement, RSA and IDVR have accepted the data based on an extensive third-party forensic review of IDVR’s financial records for these timeframes. IDVR is currently in the process of submitting the policy, procedures, and internal controls to RSA regarding the federal reporting of the RSA-17 required data elements. The fiscal staff have also worked extensively to ensure all future RSA-17 reports include supporting documentation that have been extracted from Luma and this process has been implemented as of February 2026. Once RSA approves the IDVR RSA-17 policy, procedures, and internal controls IDVR will adopt, train, and implement these documents as standard practice and will complete all future reports in accordance with the outlined controls and maintain the supporting documentation as outlined in the policy. Anticipated Corrective Action Date: January 30, 2027 Responsible for Corrective Action: Heidi Smith, Financial Officer Heidi.Smith@vr.idaho.gov (208) 287-6457

View Audit 414614

Finding 1239957 (2025-221)

Material Weakness 2025

State of Idaho

ID

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting § 200.303

Finding Number 2025-221: The Division did not complete required Federal Funding Accountability and Transparency Act (FFATA) reports for the Homeland Security Grant Program. Federal Program: 97.067 - Homeland Security Grant Program Related to Prior Finding: N/A Agency’s view: The agency agrees with t...

Finding Number 2025-221: The Division did not complete required Federal Funding Accountability and Transparency Act (FFATA) reports for the Homeland Security Grant Program. Federal Program: 97.067 - Homeland Security Grant Program Related to Prior Finding: N/A Agency’s view: The agency agrees with the issue identified. Corrective Action: Condition - subawards of $30,000 or more are to be reported to the FFATA Subaward Reporting System (FSRS). All FFATA reports are due by the end of the month following the month the subawards are obligated. While IOEM utilizes a tracker for FFATA reporting, some reports were late or missing. Federal government shutdowns, the change in FFATA reporting portal (FSRS was retired on March 8, 2025, and all FFATA reporting must be submitted in SAM.GOV), staffing turnover and delayed grant reimbursements resulted FFATA reporting delays. Resolution - The IOEM Finance Section (group responsible for FFATA reporting) is now fully staffed, and a Standard Operating Procedure / Instruction Guide has been developed to assist existing and new staff in adhering to FFATA reporting requirements in the new SAM.GOV interface. This will ensure consistency and thoroughness in FFATA reporting. Anticipated Corrective Action Date: August 31, 2026. Responsible for Corrective Action: Kari Harneck, IOEM Finance Section Chief kharneck@imd.idaho.gov (208) 258-6511

View Audit 414614

Finding 1239938 (2025-212)

Material Weakness 2025

State of Idaho

ID

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

Finding Number 2025-212: A Social Services Block Grant (SSBG) Post-Expenditure Report did not include a review and approval prior to submission. Federal Program: 93.667 - Social Services Block Grant Related to Prior Finding: N/A Agency’s view: The agency agrees with the finding. Corrective Action: T...

Finding Number 2025-212: A Social Services Block Grant (SSBG) Post-Expenditure Report did not include a review and approval prior to submission. Federal Program: 93.667 - Social Services Block Grant Related to Prior Finding: N/A Agency’s view: The agency agrees with the finding. Corrective Action: The SSBG Post-Expenditure Report has been added to the Department’s Grant Log with the applicable due date and will follow the Department’s established federal financial reporting review process. Prior to submission, the Grant Reporting Team will prepare the report and supporting workpapers, these include reconciliation of reported expenditures to the underlying financial records and documentation supporting the information reported. The report will be routed to the appropriate supervisor and/or Financial Manager for review and approval before submission. The Report Routing Cover Sheet will document the preparer, reviewer, date of review, approval, and any corrections or followup required. The Cash and Grants Supervisor will monitor the Grant Log to ensure the Post-Expenditure Report is routed, reviewed, approved, and submitted by the required due date. Completed Report Routing Cover Sheets and supporting documentation will be retained with the grant records as evidence that the required review and approval occurred prior to submission. This process will provide a documented review and approval control over the SSBG Post-Expenditure Report and ensure that management has evidence that the report was reviewed for accuracy and completeness before it is submitted. Anticipated Corrective Action Date: March 31, 2027 Responsible for Corrective Action: Randena P. Darpli, CPA, CGFM, Financial Manager dena.darpli@dhw.idaho.gov (208) 334-4909

View Audit 414614

Finding 1239937 (2025-211)

Material Weakness 2025

State of Idaho

ID

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties § 200.303

Finding Number 2025-211: Federal Funding Accountability and Transparency Act (FFATA) reports were not reviewed prior to submission and were not submitted timely. Federal Program: 93.568 - Low-Income Home Energy Assistance Related to Prior Finding: N/A Agency’s view: The agency agrees with the findin...

Finding Number 2025-211: Federal Funding Accountability and Transparency Act (FFATA) reports were not reviewed prior to submission and were not submitted timely. Federal Program: 93.568 - Low-Income Home Energy Assistance Related to Prior Finding: N/A Agency’s view: The agency agrees with the finding. Corrective Action: The FFATA Data Worksheet, developed by DHW, includes a list of all obligations of federal funds to subgrantees of $30,000 or more that occurred during the prior month. The due date will be added to the FFATA Data Worksheet to draw particular attention to that. The FFATA Data Worksheet is prepared by the Grant Reporting Team Lead, Financial Specialist, Senior, and the Cash and Grants Supervisor, Financial Specialist, Principal, will be responsible for reviewing it to ensure all applicable subgrants are included for the month. Once that review has occurred and any resulting edits have been made, the FFATA Data Worksheet will be returned to the Grant Reporting Team Lead to enter the data in sam.gov. As sam.gov does not offer a “save” function, there is not a presubmission review. The previously discussed review by the Cash and Grants Supervisor is aimed at preventing any noncompliance related to omission of reportable obligations. A final review aimed at detecting and timely correcting any material misstatements will take place with the Technical Records Specialist completing a data entry review to ensure the data entered into sam.gov agrees with the FFATA Data Worksheet. A FFATA Report Routing Sheet will also be developed to document the above reviews and approvals. The FFATA Report Routing Sheet will also include the due date as another point of monitoring for timely submission. Completed routing sheets and supporting documentation will be retained in the grant file as evidence that the required review, submission, and verification procedures are performed. Anticipated Corrective Action Date: January 31, 2027 Responsible for Corrective Action: Randena P. Darpli, CPA, CGFM, Financial Manager dena.darpli@dhw.idaho.gov (208) 334-4909

View Audit 414614

Finding 1239933 (2025-209)

Material Weakness 2025

State of Idaho

ID

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

Finding Number 2025-209: The Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) project and expenditure reports (P&E) contained misstatements. Federal Program: 21.027 - Coronavirus State and Local Fiscal Recovery Fund Related to Prior Finding: N/A Agency’s view: The Division agrees with the ...

Finding Number 2025-209: The Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) project and expenditure reports (P&E) contained misstatements. Federal Program: 21.027 - Coronavirus State and Local Fiscal Recovery Fund Related to Prior Finding: N/A Agency’s view: The Division agrees with the finding and recognizes that additional controls are needed to ensure CSLFRF Project and Expenditure reports are accurate, fully supported, and more thoroughly reconciled to the State’s accounting system before submission. The Division notes that the identified errors were below the program’s materiality threshold and did not result in a finding of material noncompliance or a material weakness. The Division also corrects reporting errors when they are identified. However, Treasury’s published FAQ and written correspondence (attached) confirm that submitted reports cannot be reopened after the reporting deadline. Because P&E reports are cumulative, any necessary corrections must be reflected in a subsequent reporting period. This required correction process contributed to some of the differences identified during the audit because adjustments related to prior periods were necessarily recorded in later reports. Accordingly, the timing of these adjustments was consistent with Treasury’s prescribed reporting process. Corrective Action: The Division will implement the following corrective actions for all remaining CSLFRF P&E reports: 1. Required agency support. Each administering agency will submit a completed reporting template for every active project. If no activity occurred, the agency must provide documented confirmation of no change. Missing templates will be tracked and escalated before the report is finalized. 2. Reconciliation to Luma. Current and cumulative expenditures and obligations will be reconciled by administering agency to Lumat. All differences will be documented and resolved before submission. 3. Independent detailed review. The review will cover source templates, Luma reconciliations, current and cumulative amounts, prior-period balances, adjustments, and evidence supporting projects reported with no change. 4. Procedures, training, and retention. The Division will document the reporting process, provide training and cross-training to staff involved in CSLFRF reporting, and retain the templates, reconciliations, agency confirmations, review checklist, and final submission support in a centralized reporting file. 5. Correction of prior reporting errors. The Division will correct the identified errors through Treasury's prescribed process. In written email correspondence to Justin Collins, the U.S. Department of the Treasury confirmed: 'Prior submitted reports are not eligible to be reopened for revisions since the reporting deadline has passed. The SLFRF Project and Expenditure Reports are cumulative reports, and any adjustments needed will need to be made in the next reporting period.' Accordingly, the Division will document and include the necessary adjustments in the next available cumulative P&E report and retain Treasury's email as support for the correction method. Anticipated Corrective Action Date: January 31, 2027. The revised controls will be applied before submission of the next required quarterly CSLFRF P&E report. Responsible for Corrective Action: Justin Collins, Deputy Administrator | State Financial Officer Justin.collins@dfm.idaho.gov (208) 854-3063

View Audit 414614

Finding 1239839 (2025-004)

Material Weakness 2025

Community Benefit Solutions

PA

Internal Control / Segregation of Duties Subrecipient Monitoring Material Weakness

Material Weakness in Internal Control over Compliance 10.558 – Child and Adult Care Food Program Commonwealth of Pennsylvania, Department of Education Contract Number: 359-46-477-8 Condition: Based on the Commonwealth of Pennsylvania, Office of the Budget, Bureau of Audits (Commonwealth) review of C...

Material Weakness in Internal Control over Compliance 10.558 – Child and Adult Care Food Program Commonwealth of Pennsylvania, Department of Education Contract Number: 359-46-477-8 Condition: Based on the Commonwealth of Pennsylvania, Office of the Budget, Bureau of Audits (Commonwealth) review of CBS Food Program's financial accounting system, it was noted that the Food Program utilizes QuickBooks software for their accounting system. Based on inquiry with CBS Food Program management, we determined internal controls connected with their QuickBooks accounting software were insufficient in the following areas: - User Access Management: Formal written policies or procedures have not been developed and implemented related to access authorization, access monitoring, and removal of system access. Additionally, certain functions are not properly segregated as users have access to perform both input and authorization of transactions. - Input Management: Formal written policies or procedures to ensure information input into QuickBooks is appropriate and accurate have not been developed and implemented. - Change Control Management: A formal written change management policy for QuickBooks Accounting System has not been developed and implemented including requirements that system security updates are implemented timely. - Backup and Recovery: A formal written policy for regular backup and recovery testing has not been developed and implemented. Recommendation: We recommend that CBS Food Program develop and implement comprehensive written internal control policies and procedures connected with their QuickBooks Accounting System. This should include: - Development and utilization of an Accounting Manual which includes an outline of CBS Food Program's accounting rules, procedures, and guidelines. - Access control policies and procedures to ensure that user access to QuickBooks is appropriate, regularly reviewed and promptly revoked upon termination or when otherwise merited. - A formal written change management policy for QuickBooks should be developed and implemented including requirements that systems security updates are implemented timely. - A disaster recovery plan and procedures to perform periodic testing to ensure that plans are functional and mitigate the risk of extended downtime. This process should also include regular review of backup records to ensure they are appropriately created and maintained. Repeat Finding: Yes Explanation of Disagreement with Audit Finding There is no disagreement with the audit finding. Action taken in response to finding: CBS Food Program will review all users of its new QuickBooks Online platform, document each user, and assign access based on job responsibilities and established best practices. Written procedures will address the timely removal or reassignment of access following terminations or role changes and will be incorporated into the applicable human resources checklists. CBS Food Program will also coordinate with QuickBooks support to identify security updates that may affect financial processes and establish procedures and defined timelines for implementing those updates. In addition, CBS Food Program will develop a disaster recovery plan and procedures for testing backups at least annually, or every 180 days if deemed appropriate, to confirm that backup records are created accurately and maintained properly. Community Benefit Solutions will also develop an accounting manual documenting standard practices for all accounting functions. Planned completion date for corrective action plan: June 30, 2026

View Audit 414517

Finding 1239797 (2025-001)

Material Weakness 2025

Meriwether County Board of Education

GA

Subrecipient Monitoring Reporting Special Tests & Provisions § 200.303

FA 2025-01 Internal Controls over Wage Rate Requirements Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: Assistance Listing Number and Title: Federal Award Number: Repeat of Prior Year Finding: Description: Special Tests and Provision...

FA 2025-01 Internal Controls over Wage Rate Requirements Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: Assistance Listing Number and Title: Federal Award Number: Repeat of Prior Year Finding: Description: Special Tests and Provisions Material Weakness Material Noncompliance U.S. Department of Education Georgia Department of Education COVID-19 - 84.425U - American Rescue Plan Elementary and Secondary School Emergency Relief Fund S425U210012 (Year: 2022) FA 2024-001 Description: A review of construction-related expenditures charged to the Elementary and Secondary School Emergency Relief Fund program revealed that the School District's internal control procedures were not operating to ensure that Wage Rate Requirements were followed appropriately. Corrective Action Plans: The Meriwether County School District is committed to maintaining full compliance with the Davis-Bacon Act and related Federal wage requirements for all construction projects funded with Federal dollars. To ensure compliance, we are implementing clear, documented procedures to verify that all construction-related contracts include the appropriate wage provisions and that certified payroll records are submitted weekly and in a timely manner by all contractors and subcontractors. The following steps outline how the district will develop, implement, and monitor these procedures: Development and Implementation Procedures 1. Contract Template Updates All standard construction contract templates will be updated to include Davis-Bacon prevailing wage rate requirements, certified payroll provisions, and enforcement language. 2. Inclusion in Bid Documents and RFPs All bid solicitations and RFPs for federally funded construction projects will explicitly reference the applicable Federal wage determinations and required payroll documentation. 3. Pre-Award Contractor Communication Contractors will be notified in writing of their obligations under the Davis-Bacon Act during the bid process and again at contract award. 4. Pre-Construction Orientation Pre-construction meetings will be held with contractors and subcontractors to review Davis-Bacon requirements, wage determinations, and payroll submission expectations. Monitoring and Enforcement Procedures 1. Certified Payroll Collection Contractors will be required to submit certified payrolls weekly for each week of work performed. A checklist and calendar will be maintained by the project manager to track submissions. 2. Payroll Verification Process Submitted certified payrolls will be reviewed for completeness, accuracy, and compliance with wage rates. Spot checks (e.g., worker interviews or site visits) will be conducted periodically. 3. Centralized Document Storage All certified payrolls and compliance records will be stored in a centralized, secure digital file system accessible by authorized district staff and available for audit or federal review. 4. Compliance Reporting and Follow-Up Any instances of non-compliance will be documented and addressed promptly. Corrective actions may include written warnings, payment withholdings, or notification to oversight agencies. 5. Internal Audits and Staff Training The district' s Federal Programs Director will conduct internal quarterly audits as necessary when Federal funds are being used to verify proper procedures are being followed, and ongoing training will be provided to staff involved in procurement, contracting, and facilities management. By implementing these procedures, the district will ensure that all federally funded construction contracts fully comply with applicable wage laws and that payroll records are collected, reviewed, and maintained in a timely and transparent manner. Regular monitoring and staff accountability will help ensure continued legal compliance and project integrity. Estimated Completion Date: June 30, 2025 Contact Person: Carrie Chambers, Federal Programs Director Telephone: 706-441-0601 Email: carrie.chambers@mcssga.org

View Audit 414493

Finding 1239796 (2025-001)

Material Weakness 2025

City of North Chicago

IL

Reporting Material Weakness

SECTION 5 – CORRECTIVE ACTION PLAN Finding 2025-001: Grant Reporting Condition: For 1 out of 1 sample tested (100%), the auditee reported expenses for the federal program on the SEFA in a period different from when the related federal award activity occurred. Corrective Action Plan: Management shoul...

SECTION 5 – CORRECTIVE ACTION PLAN Finding 2025-001: Grant Reporting Condition: For 1 out of 1 sample tested (100%), the auditee reported expenses for the federal program on the SEFA in a period different from when the related federal award activity occurred. Corrective Action Plan: Management should implement a documented SEFA cutoff review to verify that expenditures are reported in the correct fiscal year and supported by the general ledger and grant records. Anticipated Date of Completion: Fiscal Year 2026 Name of Contact Person: Tawanda Joyner, Comptroller Management Response: The City will strengthen its revenue posting process by ensuring fiscal year placement at the point of entry. Specifically, all revenue transactions that arrive at the beginning or end of the fiscal year will be reviewed by the Comptroller prior to posting to the general ledger to confirm the correct fiscal year coding and that the revenue is allocated to the appropriate period based on established cutoff and supporting documentation. After the Comptroller’s review and approval, Accounting will post the revenue to the correct fiscal year and update the related records to ensure tie-outs and reconciliation support reflect the corrected period.

View Audit 414486

Finding 1239758 (2025-002)

Material Weakness 2025

San Diego County Air Pollution Control District

CA

Cash Management Material Weakness Matching / Level of Effort / Earmarking § 200.303

Type of Finding: Material Weakness in Internal Control over Compliance Division: Support Services Responsible Official: Chief, Support Services Target Completion Date: June 30, 2026 Status: In Progress 1. Summary of the Finding The FY 2024‑25 Single Audit identified deficiencies in internal controls...

Type of Finding: Material Weakness in Internal Control over Compliance Division: Support Services Responsible Official: Chief, Support Services Target Completion Date: June 30, 2026 Status: In Progress 1. Summary of the Finding The FY 2024‑25 Single Audit identified deficiencies in internal controls over the District’s cash management practices for federal grants under ALN 66.001 and 66.039. Specifically, the District did not retain evidence showing that drawdown requests were reviewed and approved by the appropriate individual prior to submission. This control lapse occurred for all tested drawdowns and represents a material weakness in internal control over compliance. 2. Root Cause The District’s procedures for processing payment drawdowns did not require or document review and approval prior to submission. The lack of a formalized and documented approval step resulted in an incomplete audit trail and insufficient compliance documentation. 3. Corrective Action Plan The District will strengthen internal control over federal grant cash management by implementing formal approval, documentation, and oversight requirements for all drawdown submissions. A. Implement Formal Drawdown Review and Approval Procedures B. Establish Documentation and Retention Requirements C. Monitoring and Quality Assurance 4. Monitoring & Verification • The Chief of Support Services will oversee implementation and continuous compliance. • Compliance will be verified through quarterly internal reviews and a year‑end checklist confirming approval documentation for every drawdown. • All results will be retained and made available for future audits. 5. Expected Outcome These corrective actions will: • Ensure drawdown submissions are accurate, reviewed, and compliant with federal requirements. • Establish a complete audit trail documenting proper oversight. • Strengthen internal control over federal cash management and prevent future findings. • Reduce risk of inaccurate or unauthorized drawdowns and ensure sustained compliance with 2 CFR Section 200.303(a).

View Audit 414470

Finding 1239729 (2025-010)

Material Weakness 2025

FOOTPRINTS, INC.

MO

Procurement, Suspension & Debarment Subrecipient Monitoring Eligibility § 200.329

Suspension and Debarment – Assistance Listing Number 14.251 Recommendation: We recommend that management establish and implement policies and procedures for internal staff to monitor all vendors for suspension and debarment. Explanation of disagreement with audit finding: There is no disagreement wi...

Suspension and Debarment – Assistance Listing Number 14.251 Recommendation: We recommend that management establish and implement policies and procedures for internal staff to monitor all vendors for suspension and debarment. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization will establish and implement policies and procedures for internal staff to monitor all vendors for suspension and debarment. Name of the contact person responsible for corrective action: Joel Bailey Planned completion date for corrective action plan: December 31, 2026

View Audit 414437

Finding 1239728 (2025-009)

Material Weakness 2025

FOOTPRINTS, INC.

MO

Internal Control / Segregation of Duties Subrecipient Monitoring Material Weakness § 200.329

Reporting – Assistance Listing Number 14.251 Recommendation: We recommend that management establish and implement a policy to record and retain review of all reports, and to retain proof of submission to verify timeliness of submission of required reports. Explanation of disagreement with audit find...

Reporting – Assistance Listing Number 14.251 Recommendation: We recommend that management establish and implement a policy to record and retain review of all reports, and to retain proof of submission to verify timeliness of submission of required reports. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization will establish and implement policies to record and retain review of all reports, and to retain proof of submission to verify timeliness of submission of required reports. Name of the contact person responsible for corrective action: Joel Bailey Planned completion date for corrective action plan: December 31, 2026

View Audit 414437

Finding 1239727 (2025-008)

Material Weakness 2025

FOOTPRINTS, INC.

MO

Internal Control / Segregation of Duties Subrecipient Monitoring Allowable Costs / Cost Principles § 200.329

Cash Management – Assistance Listing Number 14.251 Recommendation: We recommend that management establish and implement policies to retain proof of amounts requested for reimbursement. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in re...

Cash Management – Assistance Listing Number 14.251 Recommendation: We recommend that management establish and implement policies to retain proof of amounts requested for reimbursement. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization will establish and implement policies to retain proof of amounts requested for reimbursement. Name of the contact person responsible for corrective action: Joel Bailey Planned completion date for corrective action plan: December 31, 2026

View Audit 414437

Finding 1239726 (2025-007)

Material Weakness 2025

FOOTPRINTS, INC.

MO

Procurement, Suspension & Debarment Material Weakness § 200.318 § 200.327

Procurement Policy – Assistance Listing Number 14.251 Recommendation: We recommend management update the procurement policy to be in line with Uniform Guidance. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The O...

Procurement Policy – Assistance Listing Number 14.251 Recommendation: We recommend management update the procurement policy to be in line with Uniform Guidance. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization will update the procurement policy to be in line with Uniform Guidance. Name of the contact person responsible for corrective action: Joel Bailey Planned completion date for corrective action plan: December 31, 2027

View Audit 414437

Finding 1239722 (2025-001)

Material Weakness 2025

Jewish Family Services

OH

Material Weakness Matching / Level of Effort / Earmarking

Finding Number: 2025-001 Condition: The Organization failed to correctly record grant revenue for certain federal programs with direct client assistance revenues during their 2025 fiscal year. Planned Corrective Action: Management will continue to evaluate current processes and practices to determin...

Finding Number: 2025-001 Condition: The Organization failed to correctly record grant revenue for certain federal programs with direct client assistance revenues during their 2025 fiscal year. Planned Corrective Action: Management will continue to evaluate current processes and practices to determine that contributions are being recognized on a gross or net basis dependent on the agency status of the transaction. This will include building out currently utilized flowcharts/checklists as well as adding indicators into their assessment which will result in additional clarity regarding the agency status of the transaction and ensuring that revenues and expenses are being appropriately matched in the correct period for these conditional contributions from the federal government. Contact Person Responsible for Corrective Action: Justin Fisher, Senior Director of Accounting Anticipated Completion Date: August 31, 2026

View Audit 414435

Finding 1239712 (2025-007)

Material Weakness 2025

Charter Township of Redford

MI

Subrecipient Monitoring Reporting Material Weakness

Finding Number: 2025-007 Condition: The Township did not have the appropriate processes and controls in place to ensure FFATA reports were appropriately submitted. Planned Corrective Action: The Township will put processes and controls in place to ensure FFATA reports are submitted as needed. Contac...

Finding Number: 2025-007 Condition: The Township did not have the appropriate processes and controls in place to ensure FFATA reports were appropriately submitted. Planned Corrective Action: The Township will put processes and controls in place to ensure FFATA reports are submitted as needed. Contact person responsible for corrective action: Finance Director Anticipated Completion Date: 3/31/2026

View Audit 414415

Finding 1239709 (2025-006)

Material Weakness 2025

Charter Township of Redford

MI

Matching / Level of Effort / Earmarking Cash Management Material Weakness § 200.303

Finding Number: 2025-006 Condition: The Township did not have the appropriate controls in place to ensure reports and reimbursement requests that were required to be submitted under the grant were complete and accurate as well as ensuring the matching requirement was properly reviewed. Planned Corre...

Finding Number: 2025-006 Condition: The Township did not have the appropriate controls in place to ensure reports and reimbursement requests that were required to be submitted under the grant were complete and accurate as well as ensuring the matching requirement was properly reviewed. Planned Corrective Action: The Township will update the Grant Policy to include a requirement for dual review on all grant reporting. Contact person responsible for corrective action: Finance Director Anticipated Completion Date: 3/31/2026

View Audit 414415

Finding 1239654 (2025-003)

Material Weakness 2025

9/11 Day

CA

Subrecipient Monitoring Reporting Material Weakness § 200.303 § 200.328 § 200.329

Federal Agency Name: Corporation for National and Community Service Federal Financial Assistance Listing #94.012 Program Name: September 11th National Day of Service and Remembrance Grants Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Finding Summary: Rep...

Federal Agency Name: Corporation for National and Community Service Federal Financial Assistance Listing #94.012 Program Name: September 11th National Day of Service and Remembrance Grants Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Finding Summary: Reporting of information on subawards as required by the Federal Funding Accountability and Transparency Act of 2006 (FFATA) was not completed for each of the four subrecipients in which pass through funds exceeded $30,000. Corrective Action Plan: Management agrees with the finding and has implemented procedures to ensure that applicable subawards are identified and reported in accordance with Federal Funding Accountability and Transparency Act (FFATA) requirements. Management will review subawards at the time of award to determine whether federal reporting requirements apply, complete required reporting within the applicable reporting period, and retain documentation supporting completion of the reporting. Responsibility for monitoring and completing required FFATA reporting has been incorporated into the organization's federal grant administration procedures. Responsible Individuals: David Paine - President, Dominique Carver – Operations Director, Miranda Cirtwell – Controller Anticipated Completion Date: December 15, 2025

View Audit 414322

Finding 1239650 (2025-003)

Material Weakness 2025

Alexandria Redevelopment and Housing Authority

VA

Eligibility HUD Housing Programs Special Tests & Provisions

Finding 2025-003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Assistance Listing Numbers: 14.871 and 14.879 Noncompliance - N. Special Tests and Provisions - Selection from the Waiting List Non Compliance Material to the Fin...

Finding 2025-003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Assistance Listing Numbers: 14.871 and 14.879 Noncompliance - N. Special Tests and Provisions - Selection from the Waiting List Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Special Tests and Provisions Criteria: Selections from the Waiting List. The PHA must have written policies in its Section 8 Administrative Plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants from the waiting list. Except for as provided in 24 CFR section 982.203 (Special admission (non-waiting list), all families admitted to the program must be selected from the waiting list. “Selection” from the waiting list generally occurs when the PHA notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission (24CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition: Based upon inspection of the waiting list provided to us during the time of audit, the new move-in list and discussions with management, it could not be determined with any certainty that certain new move-ins to the Housing Voucher Cluster Programs were selected from the wait list in an order that is in accordance with the Authority’s Section 8 Administrative Plan. Context: Of a sample size of twenty (20) new move-ins, seven (7) could not be determined to be housed in proper order from the Authority's waiting list. Our sample size is statistically valid. Known Questioned Costs: $169,991* *Represents HAP attributable to seven (7) new move-ins for which the Authority could not demonstrate compliance with the selection from the waiting list requirements. The questioned costs do not represent amounts determined to be ineligible but rather costs associated with the new move-ins that may not have been housed in compliance with the selection from the waiting list requirements. Cause: There is a material weakness in internal controls over the compliance for the special tests and provisions type of compliance related to selection from the waiting list. The Authority has not retained records to support proper selection from the waiting list. Effect: The Housing Voucher Program is in material non-compliance with the special tests and provisions type of compliance related to selection from the waiting list. Recommendation: We recommend that the Authority implement a process whereby Authority personnel are hired and trained on properly housing applicants from the Authority's waiting list that will reasonably assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority has recognized the deficiencies in the Housing Voucher Cluster Programs and will train staff to properly house applicants and implement internal control procedures that will ensure compliance with federal regulations. Melena Nelson, Director of Finance, will be responsible to implement this corrective action by December 31, 2026.

View Audit 414310

Finding 1239527 (2025-001)

Material Weakness 2025

Housing Authority of the County of Marin

CA

Eligibility HUD Housing Programs Material Weakness

The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Housing Voucher Cluster to ensure that established internal control policies are being followed on a timely basis. Kathleen Wyatt, Director of Housing Operations, will be responsible to implement th...

The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Housing Voucher Cluster to ensure that established internal control policies are being followed on a timely basis. Kathleen Wyatt, Director of Housing Operations, will be responsible to implement this corrective action by December 31, 2026.

View Audit 414262

Finding 1239505 (2025-003)

Material Weakness 2025

Ecology Education, Inc.

ME

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

Loan Payment Compliance – Criteria: Ecology Education, Inc. (the School) is required to make monthly payments of principal and interest towards its loan balance in accordance with the United States Department of Agriculture Requirements. Condition: During 2025, the School was in monetary default und...

Loan Payment Compliance – Criteria: Ecology Education, Inc. (the School) is required to make monthly payments of principal and interest towards its loan balance in accordance with the United States Department of Agriculture Requirements. Condition: During 2025, the School was in monetary default under the terms of its loan agreement due to missed loan payments. Cause: The School was unable to fulfill loan payment requirements as a result of cash flow challenges encountered during the fiscal year. Effect: Loan payments are not made in accordance with federal guidelines. Recommendation: We recommend that management should develop and implement stronger controls to ensure compliance with future loan payment requirements. Responsible Parties: Drew Dumsch (President/CEO) and Anthony Pyatt (Business Manager). Corrective Action Taken or Planned: Continuing to work with USDA Rural Development on workout plan including implementing stronger controls to ensure compliance with future loan payment requirements. This includes implementing Year 3 of the Fiscal Strategy Plan as part of the workout agreement.

View Audit 414238

Corrective Action Plans

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