Corrective Action Plans

Finding 1170237 (2025-002)

Material Weakness 2025

MA

Questioned Costs Subrecipient Monitoring HUD Housing Programs

Finding 2025-002 - replacement reserves not deposited timely a. Issue: During the year ended June 30, 2025, the Projects were delinquent in making the required monthly deposits to the replacement reserve. BC HUD I required deposits for the period July 2024 through February 2025 in the amount of $60,...

Finding 2025-002 - replacement reserves not deposited timely a. Issue: During the year ended June 30, 2025, the Projects were delinquent in making the required monthly deposits to the replacement reserve. BC HUD I required deposits for the period July 2024 through February 2025 in the amount of $60,928 were funded in February 2025. BC HUD II required monthly deposits for the period July through September 2024 in the amount of $7,278 were funded in February 2025, for the period October through December 2024 in the amount of $7,416 were funded in March 2025, and for the period January through April 2025 in the amount of $9,888 were funded in April 2025. BC HUD Ill required monthly deposits for the period July 2024 through May 2025 in the amount of $26,015 were funded In May 2025. b. Recommendation: Management should establish or undertake a review of internal controls over monitoring of the replacement reserve requirements to ensure deposits are made as required. c. Action taken: A tracking spreadsheet is now being used which lists the monthly amounts required to be transferred to the reserves and has a column for staff to input the date that the transfers were made. This spreadsheet is now reviewed on a weekly basis by both the Senior Cash Management Accountant and the Assistant Controller as part of the weekly check run to ensure that the monthly transfers to the reserves are made early in the month prior to paying other liabilities.

View Audit 383306

Finding 1170236 (2025-001)

Material Weakness 2025

Juliette Corporation

MA

Questioned Costs Special Tests & Provisions Subrecipient Monitoring

1. Finding 2025-001 - tenant rent payments not deposited timely a. Issue: During the year ended June 30, 2025, Bay Cove Human Services, Inc., an affiliate and sponsor agency for Juliette Corporation, collected rent and other client fees related to its clients who are also tenants in the Projects. Fo...

1. Finding 2025-001 - tenant rent payments not deposited timely a. Issue: During the year ended June 30, 2025, Bay Cove Human Services, Inc., an affiliate and sponsor agency for Juliette Corporation, collected rent and other client fees related to its clients who are also tenants in the Projects. For a portion of the year ended June 30, 2025, Bay Cove Human Services, Inc. did not timely remit the tenant rent portion of these payments to the Projects. Delinquent rent payments for the period July 2024 through February 2025 amounted to $104,547 and were deposited in February and March 2025. Additionally, June 2025's rents were outstanding and owed to the Projects as of June 30, 2025 in the amount of$19,785 and were deposited in July 2025. b. Recommendation: Management should establish or undertake a review of internal controls over monitoring of the tenant rent deposits to ensure deposits are timely made into the Project accounts. a. Action taken: The tenant rent transfers are now prepared on a monthly basis, with the Assistant Controller reviewing them. In addition, the accounting team is now performing a monthly reconciliation of the related balance sheet accounts which show the amounts due to/from the entities for the tenant rents in order to identify any problems with the timeliness of the transfers. The Assistant Controller is reviewing these reconciliations on a monthly basis as well.

View Audit 383306

Finding 1170170 (2025-001)

Material Weakness 2025

The Housing Authority of the City of Auburn, Alabama

AL

HUD Housing Programs Questioned Costs Eligibility

A. Finding Finding 2025-001 – Moving to Work Resident Files – Eligibility – Rent Calculations & HAP Disbursements Noncompliance & Material Weakness – ALN #14.881 B. Condition and Cause The auditor reviewed fifteen (15) Housing Choice Voucher (HCV) project-based voucher (PBV) participant files and tw...

A. Finding Finding 2025-001 – Moving to Work Resident Files – Eligibility – Rent Calculations & HAP Disbursements Noncompliance & Material Weakness – ALN #14.881 B. Condition and Cause The auditor reviewed fifteen (15) Housing Choice Voucher (HCV) project-based voucher (PBV) participant files and twenty (20) HCV tenant-based voucher (TBV) participant files for a total of thirty-five (35) participant files. It was noted that fourteen (14) TBV files were non-compliant. C. Background Information The HCV Department has had numerous staff turnover in recent years. Due to organizational restructuring, Shannon Walters was moved from HCV Manager to Multi-Family Housing Director in March 2024 and Todd James was promoted to Interim HCV Manager in March 2024. Todd was moved to the HCV Operations Administrator position in February 2025, and Charlotte Bowen was hired as HCV Manager in March 2025. Mary Cameron was hired as HCV Caseworker (TBV) in December 2023 and received extensive one-on-one training. Due to performance concerns, she was given a Performance Improvement Plan. Upon completion, her performance was found to be unsatisfactory. Mary was transferred to Property Manager at the LaFayette Housing Authority site in October 2025. D. Controls to Correct the Deficiency To correct the finding noted above, the Auburn Housing Authority (AHA) will proceed as follows: a. The HCV Manager will perform a comprehensive audit of all TBV files and correct appliable deficiencies. b. Implement other internal control measures to eliminate future audit findings. E. Person Responsible: Sharon N. Tolbert, CEO F. Anticipated Completion Date: June 30, 2026

View Audit 383137

Finding 1169878 (2025-003)

Material Weakness 2025

City of Concord

NC

Questioned Costs Special Tests & Provisions Eligibility

Address weaknesses in eligibility verification and waiting list management: 1. Policy Review: Review and verify that the Admissions and Continued Occupancy Policy (ACOP) clearly states the requirement that all admissions originate from the approved waiting list and what documentation is required to ...

Address weaknesses in eligibility verification and waiting list management: 1. Policy Review: Review and verify that the Admissions and Continued Occupancy Policy (ACOP) clearly states the requirement that all admissions originate from the approved waiting list and what documentation is required to be in the participate file as waitlist verification 2. Staff Training: Provide refresher training for Public Housing staff on eligibility verification and waiting list procedures. Require dual staff sign-off on all new admissions to confirm eligibility and waiting list documentation before lease execution. 3. Waiting List Audit: Conduct a semi-annual audit of waiting list transactions to ensure documentation accuracy and selection order compliance. 4. Software Updates: Review and select a new software to assist with income item collection. Software should allow residents to upload and store documentation. This will allow greater transparency as the residents and staff will view the same information. In addition, all information would be date and time stamped to ensure tasks were completed in a timely manner.

View Audit 383033

Finding 1169876 (2025-001)

Material Weakness 2025

City of Concord

NC

Questioned Costs Eligibility HUD Housing Programs

Corrective Action: The Public Housing Authority (PHA) will strengthen eligibility determination procedures for the Housing Choice Voucher Program by implementing the following measures: 1. Policy Reinforcement: Review and update, if necessary, the Administrative Plan to explicitly outline required e...

Corrective Action: The Public Housing Authority (PHA) will strengthen eligibility determination procedures for the Housing Choice Voucher Program by implementing the following measures: 1. Policy Reinforcement: Review and update, if necessary, the Administrative Plan to explicitly outline required eligibility documentation and verification steps. 2. Staff Training: Conduct training sessions for HCV Specialists on verifying income, assets, and household composition. Staff to begin using HUD’s CPD calculator to calculate income. 3. Quality Control Review: Implement a quarterly supervisory review, by the Housing Manager, of a random 10% sample of tenant files to ensure accuracy in income calculation and documentation. 4. File Checklist: Implement file checklists in each file to ensure all items are collected correctly and available for compliance review. 5. Software Updates: Review and select a new software to assist with income item collection. Also implement the use of DocuSign to obtain signatures.

View Audit 383033

Finding 1169708 (2025-002)

Material Weakness 2025

Codman Academy Charter Public School and Affiliates

MA

Allowable Costs / Cost Principles School Nutrition Programs Material Weakness

12/7/2026 Cognizant or Oversight Agency for Audit, Codman Academy Charter Public School and Affiliate (the School) respectfully submits the following corrective action plan for the year ended June 30, 2025. Name and address of independent public accounting firm : AAFCPAs, Inc. 50 Washington Street W...

12/7/2026 Cognizant or Oversight Agency for Audit, Codman Academy Charter Public School and Affiliate (the School) respectfully submits the following corrective action plan for the year ended June 30, 2025. Name and address of independent public accounting firm : AAFCPAs, Inc. 50 Washington Street Westborough, MA 01581 Audit period: July I, 2024 - June 30, 2025 The finding from the June 20, 2025 Schedule of Findings and Questioned Costs is discussed below. FINDINGS-FEDERAL AWARD PROGRAMS AUDITS 2025-001 Required Payroll Forms Recommendation: AAFCPAs recommends the School implement a standardized checklist and conduct periodic internal reviews of onboarding documentation to ensure all required forms are properly completed and retained in accordance with Federal regulations. Action Taken: As of January, 2026 the staff member responsible for staff on boarding and payroll processing is no longer employed at the School. Codman, with a new staff person in charge of these tasks has instituted a standardized checklist for on boarding, has performed a backward looking audit of employee files and will conduct internal periodic reviews for completeness and accuracy. If the Cognizant or Oversight Agency for Audit has questions regarding this plan, please tell Derrick Cielsa, Executive Direct as 617-287-0770 Sincerely yours, Derrick Ciesla Excutive Director

View Audit 382720

Finding 1169707 (2025-001)

Material Weakness 2025

Codman Academy Charter Public School and Affiliates

MA

Allowable Costs / Cost Principles School Nutrition Programs Material Weakness

12/7/2026 Cognizant or Oversight Agency for Audit, Codman Academy Charter Public School and Affiliate (the School) respectfully submits the following corrective action plan for the year ended June 30, 2025. Name and address of independent public accounting firm : AAFCPAs, Inc. 50 Washington Street W...

12/7/2026 Cognizant or Oversight Agency for Audit, Codman Academy Charter Public School and Affiliate (the School) respectfully submits the following corrective action plan for the year ended June 30, 2025. Name and address of independent public accounting firm : AAFCPAs, Inc. 50 Washington Street Westborough, MA 01581 Audit period: July I, 2024 - June 30, 2025 The finding from the June 20, 2025 Schedule of Findings and Questioned Costs is discussed below. FINDINGS-FEDERAL AWARD PROGRAMS AUDITS 2025-001 Required Payroll Forms Recommendation: AAFCPAs recommends the School implement a standardized checklist and conduct periodic internal reviews of onboarding documentation to ensure all required forms are properly completed and retained in accordance with Federal regulations. Action Taken: As of January, 2026 the staff member responsible for staff on boarding and payroll processing is no longer employed at the School. Codman, with a new staff person in charge of these tasks has instituted a standardized checklist for on boarding, has performed a backward looking audit of employee files and will conduct internal periodic reviews for completeness and accuracy. If the Cognizant or Oversight Agency for Audit has questions regarding this plan, please tell Derrick Cielsa, Executive Direct as 617-287-0770 Sincerely yours, Derrick Ciesla Excutive Director

View Audit 382720

Finding 1169641 (2025-002)

Material Weakness 2025

City of Great Falls, Montana

MT

Reporting Internal Control / Segregation of Duties HUD Housing Programs

Federal Agency Name: U.S. Department of Housing and Urban Development Program Name: Community Development Block Grants/Entitlement Grants Assistance Listing Number: 14.218 Finding Summary: One of three quarterly PR29 Cash on Hand reports submitted to HUD contained an inaccurate figure for revolving ...

Federal Agency Name: U.S. Department of Housing and Urban Development Program Name: Community Development Block Grants/Entitlement Grants Assistance Listing Number: 14.218 Finding Summary: One of three quarterly PR29 Cash on Hand reports submitted to HUD contained an inaccurate figure for revolving funds received on Line 13, due to insufficient internal review and reconciliation. Additionally, the amount on Line 5 on the PR26 Financial Summary Report was unable to be supported. Corrective Action Plan: The City will strengthen internal controls over CDBG reporting by: • Implementing a documented secondary review process for all PR29 and PR26 reports. • Requiring reconciliation of source data to report figures prior to submission. Responsible Individual(s): Melissa Kinzler, Finance Director Tom Hazen, Grant Administrator Anticipated Completion Date: January 2026

View Audit 382641

Finding 1169621 (2025-001)

Material Weakness 2025

Lake County Community College District

OH

Student Financial Aid Internal Control / Segregation of Duties Questioned Costs § 200.303

Finding Number: 2025-001 Condition: There was a lack of internal controls in place related to the return of Title IV funds. Planned Corrective Action: The College has implemented procedures to verify that academic dates are entered accurately in Banner and confirmed by personnel other than those res...

Finding Number: 2025-001 Condition: There was a lack of internal controls in place related to the return of Title IV funds. Planned Corrective Action: The College has implemented procedures to verify that academic dates are entered accurately in Banner and confirmed by personnel other than those responsible for calculating and reviewing returns of Title IV funds. This should ensure the related calculations are complete and accurate, and the funds are returned in a timely manner. Contact person responsible for corrective action: David Cummins, Vice President for Administrative Services and College Treasurer Anticipated Completion Date: December 2025

View Audit 382603

Finding 1169594 (2025-003)

Material Weakness 2025

Coastal Alabama Community College

AL

Student Financial Aid Special Tests & Provisions Material Weakness

Management’s View and Corrective Action Plan: This finding has been corrected. In addition, the College has already taken corrective action to prevent this error from occurring again. First, when processing R2T4 calculations for students who populate on the end of term Failure to Pass report, studen...

Management’s View and Corrective Action Plan: This finding has been corrected. In addition, the College has already taken corrective action to prevent this error from occurring again. First, when processing R2T4 calculations for students who populate on the end of term Failure to Pass report, students with a withdrawal date in the first two weeks of a term, will be cross checked with the Registrar’s Office to ensure that the correct LDA is being used for R2T4 calculations. The report will not automatically be assumed as correct. In addition, the Instructional Dean has been notified and informed the faculty of this error and the processes for reporting LDAs have been reiterated. In addition, to the ARGOS report used during the 2024/2025 academic year, the Financial Aid Director is using a more detailed report that is available through the ACCS. The new report and the old report will be cross-checked for accuracy. We will continue to review and modify policies to ensure that R2T4 calculations are correct.

View Audit 382576

Finding 1169590 (2025-002)

Material Weakness 2025

Coastal Alabama Community College

AL

Student Financial Aid Special Tests & Provisions Material Weakness

Management’s View and Corrective Action Plan: The College is in the process of correcting this finding for future withdrawals. The College Registrar’s Office reports enrollment, which includes withdrawal’s, every 30 days. However, this finding has to do with the Failure to Pass report and incorrect ...

Management’s View and Corrective Action Plan: The College is in the process of correcting this finding for future withdrawals. The College Registrar’s Office reports enrollment, which includes withdrawal’s, every 30 days. However, this finding has to do with the Failure to Pass report and incorrect LDA’s that are reported by the Instructional side of the College and indicating these dates in Banner. There are several places that LDA’s have to be updated and if one is missed it could affect the date that pulls on the Financial Aid Office’s Failure to Pass report. The Financial Aid Director and the College Registrar have already been working to ensure the accuracy of those dates for the Fall 2025 report. In addition, the Instruction Dean has been notified and informed the faculty of this error and the processes for reporting LDAs have been reiterated. The College will continue to improve the accuracy of this process.

View Audit 382576

Finding 1169534 (2025-001)

Material Weakness 2025

New Visions Housing Corporation

CA

HUD Housing Programs Internal Control / Segregation of Duties Questioned Costs

Reporting views of responsible officials and planned corrective actions The Organization will enhance its controls and procedures to ensure financial reporting is complete, accurate, and timely.

View Audit 382475

Finding 1169528 (2025-001)

Material Weakness 2025

Vista Homes Housing Corporation

NY

HUD Housing Programs Internal Control / Segregation of Duties Questioned Costs

Reporting views of responsible officials and planned corrective actions The Organization will enhance its controls and procedures to ensure financial reporting is complete, accurate, and timely.

View Audit 382474

Finding 1169523 (2025-002)

Material Weakness 2025

Housing for the Multi-Handicapped Blind

NY

Allowable Costs / Cost Principles HUD Housing Programs Questioned Costs

Reporting views of responsible officials and planned corrective actions The Organization will enhance its controls to ensure expenses are captured in the correct fiscal period and that at year-end there is a final review of the transactions to ensure completeness, accuracy and proper classification ...

Reporting views of responsible officials and planned corrective actions The Organization will enhance its controls to ensure expenses are captured in the correct fiscal period and that at year-end there is a final review of the transactions to ensure completeness, accuracy and proper classification of expenses. The Organization will further put in place a quarterly monitoring and review process to ensure the risk ratings of all financial institutions holding the Organization's cash and restricted cash are consistent with the minimally acceptable ratings established by the GNMA.

View Audit 382473

Finding 1169522 (2025-001)

Material Weakness 2025

Housing for the Multi-Handicapped Blind

NY

Internal Control / Segregation of Duties Questioned Costs Material Weakness

Reporting views of responsible officials and planned corrective actions The Organization will enhance its controls and procedures to ensure financial reporting is complete, accurate, and timely.

View Audit 382473

Finding 1169519 (2025-001)

Material Weakness 2025

Great Expectations Housing Corporation

CA

HUD Housing Programs Internal Control / Segregation of Duties Questioned Costs

Reporting views of responsible officials and planned corrective actions The Organization will enhance its controls and procedures to ensure financial reporting is complete, accurate, and timely.

View Audit 382472

Finding 1169469 (2025-001)

Material Weakness 2025

Roseville Area Schools Isd No. 623

MN

School Nutrition Programs Cash Management Material Weakness

Significant Deficiency in Internal Control over Financial Reporting Recommendation: We recommend the District continue to improve its processes and procedures surrounding reporting of claims meal summaries. Explanation of disagreement with audit finding: There is no disagreement with the audit findi...

Significant Deficiency in Internal Control over Financial Reporting Recommendation: We recommend the District continue to improve its processes and procedures surrounding reporting of claims meal summaries. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The District will work to develop processes and procedures to ensure reports tie to claims summaries for meal counts. Name of the contact person responsible for corrective action: Shari Thompson Planned completion date for corrective action plan: June 30, 2026.

View Audit 382398

Finding 1169353 (2025-001)

Material Weakness 2025

Centennial Square

MN

Material Weakness Reporting Internal Control / Segregation of Duties

2025-001 Section 202 Capital Advance – Assistance Listing No. 14.157 Recommendation: Centennial Square should evaluate their financial reporting processes and controls, including the expertise of its internal staff, to determine whether additional controls over the preparation of annual financial st...

2025-001 Section 202 Capital Advance – Assistance Listing No. 14.157 Recommendation: Centennial Square should evaluate their financial reporting processes and controls, including the expertise of its internal staff, to determine whether additional controls over the preparation of annual financial statements can be implemented to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will continue to rely on CliftonLarsonAllen to draft the financial statements and the related notes to the financial statements, and will review, approve, and accept responsibility for the annual financial statements prior to their issuance. Name(s) of the contact person(s) responsible for corrective action: Tammy Gjerde, Finance Director

View Audit 382289

Finding 1169350 (2025-001)

Material Weakness 2025

Wayland Baptist University

TX

Questioned Costs Student Financial Aid Material Weakness

Lack of Administrative Capability Planned Corrective Action: The Office of Financial Aid and Wayland Baptist University agree with this finding. To address the system limitations identified, the University has acquired a new Software-as-a-Service (SaaS) financial aid management system. This system w...

Lack of Administrative Capability Planned Corrective Action: The Office of Financial Aid and Wayland Baptist University agree with this finding. To address the system limitations identified, the University has acquired a new Software-as-a-Service (SaaS) financial aid management system. This system will replace the current platform and is intended to improve automation, reporting accuracy, workflow tracking, and overall compliance with federal and state financial aid requirements. In addition, the Office of Financial Aid is actively reevaluating workload distribution and staff assignments to ensure responsibilities are appropriately aligned with compliance-critical functions. The University is also increasing staffing levels within the Office of Financial Aid to strengthen oversight, reduce processing risk, and ensure timely and accurate completion of compliance and reporting obligations. Collectively, these actions are designed to enhance administrative capacity, strengthen internal controls, and mitigate the risk of future compliance deficiencies. Person Responsible for Corrective Action Plan: Executive Director of Financial Aid, Robert Hamilton, and Assistant Director of Compliance & Reporting, Brooke Tyler Anticipated Date of Completion: June 30, 2026

View Audit 382279

Finding 1169346 (2025-003)

Material Weakness 2025

Wayland Baptist University

TX

Questioned Costs Student Financial Aid Material Weakness

Inaccurate and Untimely Return of Title IV Funds (R2T4) Planned Corrective Action: The Executive Director of Financial Aid and the Assistant Director of Compliance & Reporting will provide regular in-house R2T4 training specific to WBU for all financial aid staff. All financial aid staff responsible...

Inaccurate and Untimely Return of Title IV Funds (R2T4) Planned Corrective Action: The Executive Director of Financial Aid and the Assistant Director of Compliance & Reporting will provide regular in-house R2T4 training specific to WBU for all financial aid staff. All financial aid staff responsible for R2T4 will be required to complete pertinent training provided by FSA and purchased through NASFAA. In addition, financial aid staff responsible for R2T4 have established procedures to ensure the accurate and timely Return of Title IV Funds. To address the system limitations identified, the University has acquired a new Software-as-a-Service (SaaS) financial aid management system. Person Responsible for Corrective Action Plan: Executive Director of Financial Aid, Robert Hamilton, and Assistant Director of Compliance & Reporting, Brooke Tyler, and Assistant Director of Financial Aid, Alyssa Shealor Anticipated Date of Completion: June 30, 2026

View Audit 382279

Finding 1169345 (2025-002)

Material Weakness 2025

Wayland Baptist University

TX

Reporting Student Financial Aid Eligibility

Incorrect Enrollment Reporting to National Student Loan Data System (NSLDS) Planned Corrective Action: WBU has entered into an agreement with Ellucian to implement Ellucian Student powered by Colleague as the new student information system. WBU will start utilizing this new student information syste...

Incorrect Enrollment Reporting to National Student Loan Data System (NSLDS) Planned Corrective Action: WBU has entered into an agreement with Ellucian to implement Ellucian Student powered by Colleague as the new student information system. WBU will start utilizing this new student information system in April 2026. WBU will utilize the built-in functionality and tools to report to NSLDS at that time which should correct this issue completely. We will continue to work towards compliance with NSLDS reporting requirements through the following action plan: An internal SSRS report for official and unofficial withdrawals which accurately reflects withdrawn students remains available to the WBU offices of Financial Aid and the Registrar for verification as part of the planned corrective action. The custom NSC reporting tool(s) will continue to be updated to make sure the correct combination of fields and corresponding data sources are reported as accurately as possible. WBU will continue to work with NSC to mitigate issues related to data not transferring correctly between NSC and NSLDS. • A field-by-field analysis plus any needed corrections to the queries will be performed. o By default, term "W" withdrawals are reconsidered by the updated tool each time a report is generated for NSC. o Some date fields have been corrected that were previously misunderstood by the custom tool's historical authors. o Post-submission error corrections by registrar staff via NSC's website are spot-checked by Information Technology when requested. o If certain data issues cannot be resolved satisfactorily via NSC alone, then corrective measures via NSLDS directly may be considered. o The PowerCampus 9.1.2 baseline product's NSC reporting tool was determined to be insufficient for timely and accurate reporting to NSC with WBU's current data on several counts. WBU has upgraded the PowerCampus system to version 9.2.3 and will continue to work towards a solution for the baseline reporting tool with the upgraded system.  Some of the recurring data updates needed before running the PC baseline tool, are still being run periodically as a source data benefit for the custom tool. Person Responsible for Corrective Action Plan: Chief Information Officer, Cagan Cummings Anticipated Date of Completion: Ongoing

View Audit 382279

Finding 1169244 (2025-001)

Material Weakness 2025

Lone Star College System

TX

Questioned Costs Allowable Costs / Cost Principles Material Weakness

1. Immediate Compliance Review and Documentation Grants Accounting & Grants Development and Compliance (GDC) will conduct a comprehensive review of the five HEIA grants renewed for FY2026: • Verify each employee's current compensation source (institutional vs. grant funds) • Calculate the correct gr...

1. Immediate Compliance Review and Documentation Grants Accounting & Grants Development and Compliance (GDC) will conduct a comprehensive review of the five HEIA grants renewed for FY2026: • Verify each employee's current compensation source (institutional vs. grant funds) • Calculate the correct grant-funded compensation based on Level of Effort percentages • Determine the period of noncompliance for each grant • Document total amount of personnel costs that should have been charged to grants • Make adjusting entries in FY2026 as needed 2. Transition Personnel to Grant-Funded Payroll (if required) Grants Accounting will work with the Program Team to: • Establish split-funding arrangements for each affected employee based on their Level of Effort • Update payroll accounting codes to properly charge personnel costs to grant accounts • Ensure proper fund availability and budget alignment 3. Review Time and Effort Reporting Procedures and Update (if necessary) Establish compliant time and effort documentation as required by 2 CFR 200.430: • For employees working solely on one grant (100% effort): Implement semi-annual certification • For employees on multiple cost objectives: Review time and effort documentation to ensure proper payroll allocation; correct as needed • Re-train all affected personnel on time and effort reporting requirements • Establish quarterly review process to ensure accurate reporting 4. Budget Realignment and Prior Approval Requests For each affected grant: • Review current budget vs. actual expenditures • Determine if budget modifications are needed to accommodate personnel costs • Submit prior approval requests to Department of Education if required (2 CFR 200.308) • Coordinate with program officers for each grant as needed 5. Policy and Procedure Updates Develop and implement enhanced procedures to prevent recurrence: • Update standard operating procedures for setting up grant-funded positions • Establish pre-award checklist requiring coordination between Grants Office and HR • Implement quarterly reconciliation between GAN key personnel and actual payroll charges • Require GDC to sign-off on all personnel appointments for grant-funded positions • Update training and grant orientation information as needed 6. Training and Communication Provide comprehensive training to: • All current Project Directors/Managers on federal grant personnel requirements • HR staff on grant-funded position management • Grants Accounting staff on proper cost allocation and monitoring • Department chairs/supervisors who oversee grant-funded personnel 7. Ongoing Monitoring and Quality Assurance Implement enhanced monitoring procedures: • Monthly reconciliation of GAN key personnel vs. actual grant charges • Quarterly review of time and effort reports for completeness and accuracy • Annual internal review of grant personnel compliance 8. Communication with Federal Agencies As appropriate: • Submit required modifications or amendments to grant agreements • Provide documentation of compliance restoration

View Audit 382199

Finding 1169138 (2025-002)

Material Weakness 2025

Lighthouse Living Centers No. 2, Inc.

TX

HUD Housing Programs Material Weakness

Findings #2025-001 and #2025-002 – Material Weakness and Other Noncompliance. Condition and context: Adjustments were required to properly state accrued interest payable and interest expense, depreciation and accumulated depreciation, maintenance expense and building equipment, tenant deposits held ...

Findings #2025-001 and #2025-002 – Material Weakness and Other Noncompliance. Condition and context: Adjustments were required to properly state accrued interest payable and interest expense, depreciation and accumulated depreciation, maintenance expense and building equipment, tenant deposits held in trust and tenant charges, salary expense and related payables, and accounts payable and related expense. These adjustments decreased the change in net assets by approximately $59,500. Additionally, an audit adjustment of approximately $24,350 was required to properly state cash and intercompany payables. Recommendation: Policies and procedures should be designed and implemented to ensure that transactions are appropriately recognized in the accounting records, supported by appropriately approved documentation and that accounts, including accruals, are timely reviewed and reconciled. Planned corrective action: Following turnover that resulted in accounting challenges, we hired a CFO to develop standard operating procedures and best practices to ensure we maintain operational excellence in non-profit accounting. We implemented strategies to address opportunities in training, best practices and oversight. Responsible officer: Terry Vaughn, Vice President of Operations and Sales. Estimated completion date: November 2025.

View Audit 381962

Finding 1169067 (2025-002)

Material Weakness 2025

Iowa Grant School District

WI

Material Weakness Internal Control / Segregation of Duties

Finding #2025-002 -Material Audit Adjustments (Prior Year Finding #2024-002) Condition: The audit proposed adjusting journal entries during the audit process to adjust District account balances. We deem these entries to be significant in relation to the financial statements. Since the District did n...

Finding #2025-002 -Material Audit Adjustments (Prior Year Finding #2024-002) Condition: The audit proposed adjusting journal entries during the audit process to adjust District account balances. We deem these entries to be significant in relation to the financial statements. Since the District did not make these adjustments in its accounting system prior to the audit, a material weakness was determined to exist in the District's internal controls. Effect: Financial reports generated by the accounting system may not provide an accurate reflection of the District's financial position or activities. Cause: Financial information was not recorded in a timely manner and numerous adjustments were needed in order to correct account balances. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner. Response: The District will establish policies and procedures to reduce the number of adjusting journal entries proposed by the auditor in future years. Contact Person: Loras Winders Anticipated Completion: June 30, 2026

View Audit 381762

Finding 1169053 (2025-001)

Material Weakness 2025

Bethel University and Affiliates

MN

Questioned Costs Student Financial Aid Material Weakness

Student Financial Aid Cluster – Assistance Listing No. Various Recommendation: We recommend the University review its reporting procedures to ensure that students’ statuses are accurately and timely reported to NSLDS as required by regulations. Explanation of disagreement with audit finding: There i...

Student Financial Aid Cluster – Assistance Listing No. Various Recommendation: We recommend the University review its reporting procedures to ensure that students’ statuses are accurately and timely reported to NSLDS as required by regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: In response to these challenges, the University initiated corrective actions beginning in Summer 2025. 1. Dedicated Technical Resources: We have been assigned dedicated ITS staff members (managed by Dynamic Campus) specifically to the resolution of enrollment and graduation submission and compilation logic. 2. Submission Scheduling: A rigid schedule for monthly enrollment and graduation submissions has been established for both Branch 00 and Branch 76. 3. Staffing: An additional Registrar’s Office staff member has been shifted to assist with the NSC process, specifically focusing on the remediation of error reports. 4. Policy Revision: We have simplified the degree conferral policy to improve the accuracy of graduation reporting. We are also working to align end of term grade submission deadlines to allow for timely end of term processing and degree conferrals. This in turn will aid in more timely submissions especially as it affects graduation reporting. 5. Data Mapping: The Registrar’s Office has collaborated with ITS to audit the specific fields and tables used to generate Clearinghouse reports. This addresses the complexity of reporting on two branches involving multiple term codes. 6. Automation: We have implemented a timely and automated submission schedule. 7. Change Management Protocols: A protocol is being implemented to prevent ITS system upgrades or network maintenance during scheduled reporting windows. 8. Data Reconciliation: We will implement a strict monitoring of Clearinghouse records regarding graduation and withdrawal dates, reconciling them against the Student Information System (SIS) and NSLDS data. That will occur once we can gain NSLDS access for the two staff members. Discrepancies will be corrected immediately. Special attention will be paid to conferral dates since they may not align with the final day of the term or sub-term. 9. Cross-Departmental Alignment: We will continue regular consultations with the Financial Aid Office regarding complex registration changes to ensure consistent interpretation and reporting. 10. Ongoing Training: Staff will continue to utilize training opportunities provided by the Clearinghouse, Banner, and other relevant bodies. Name(s) of the contact person(s) responsible for corrective action: Cheryl Fisk, University Registrar Planned completion date for corrective action plan: March 1, 2026

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Corrective Action Plans

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