Corrective Action Plans

Finding 560154 (2024-002)

Material Weakness 2024

County of Nevada

CA

Allowable Costs / Cost Principles Material Weakness Reporting

Delays in Financial Reporting Recommendation: The County should look at increasing the amount of experienced finance staff to help facilitate year-end closing procedures and the preparation of its basic financial statements. Because the basic financial statements are the responsibility of the County...

Delays in Financial Reporting Recommendation: The County should look at increasing the amount of experienced finance staff to help facilitate year-end closing procedures and the preparation of its basic financial statements. Because the basic financial statements are the responsibility of the County, it is in its best interest to closely monitor the accounting process to ensure that financial position and operating results are accurately and timely reported. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Auditor-Controller’s office is currently in the process of providing additional training to its staff to further develop their technical knowledge, and to assess internal processes over year-end closing processes and the preparation of financial statements in order to accurately update financial records and in a timely manner. Name of the contact person responsible for corrective action: Gina Will Planned completion date for corrective action plan: March 31, 2026

View Audit 356146

Finding 560095 (2024-001)

Material Weakness 2024

Twin City Mission

TX

Subrecipient Monitoring Material Weakness § 200.303

Corrective Action Planned: Twin City Mission recognizes internal control documentation weakness as it relates to the Documentation of Fair Market Rent Reasonableness Test Calculation as required by Uniform Guidance (2 CFR 200.303a) and (24 CFR 982.507). The matter of Material Weakness 2024-001 was b...

Corrective Action Planned: Twin City Mission recognizes internal control documentation weakness as it relates to the Documentation of Fair Market Rent Reasonableness Test Calculation as required by Uniform Guidance (2 CFR 200.303a) and (24 CFR 982.507). The matter of Material Weakness 2024-001 was brought to the attention of management and Board of Directors dudng annual Federal Single Audit of HOME ARP Program fiscal year ending August 31, 2024. Direct Program staff conducted rent reasonableness calculations as evidenced by file notes, email correspondence, and rent reductions; however, failed to document and certify that the assessment was performed. A Rent Reasonableness Checklist and Certification Form has been implemented into Direct Program Staff Procedures, and will be retained within corresponding client files effective May 2, 2025. Additionally, program staff will be training on these procedures and a periodic internal review process will be implemented to confirm compliance with Uniform Guidance.

View Audit 356070

Finding 560091 (2024-004)

Material Weakness 2024

Dakota Plains Legal Services, Inc.

SD

Special Tests & Provisions Subrecipient Monitoring Material Weakness

Legal Services Corporation CFDA #09-742018 Legal Services Corporation - Basic Field - General CFDA #09-742018 Legal Services Corporation - Basic Field - Native American Special Tests & Provisions - Accounting Requirements Material Weakness in Internal Control over Compliance Condition: The Organiz...

Legal Services Corporation CFDA #09-742018 Legal Services Corporation - Basic Field - General CFDA #09-742018 Legal Services Corporation - Basic Field - Native American Special Tests & Provisions - Accounting Requirements Material Weakness in Internal Control over Compliance Condition: The Organization has not performed an annual risk assessment since 2021, nor tested an emergency disaster prevention and recovery plan. Management's Response: DPLS contracted with an outside vendor during December 2024 to conduct an annual risk assessment. The IT Audit and Risk Assessment was completed during quarter 1 2025 and DPLS is awaiting the final report. Upon receipt of the final report, DPLS will review and work to satisfy all recommendations and findings. In addition, DPLS will perform a test of an emergency disaster prevention and recovery plan during 2025 to ensure compliance with Section 2.5.3 of the LSC Financial Guide. Responsible Individuals: Tom Mortland, Executive Director, Lori Stanford, Deputy Director, Jana Gray, Director of Development & Special Projects Anticipated Completion Date: July 2025

View Audit 356058

Finding 560080 (2024-001)

Material Weakness 2024

East Valley School District No. 361

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Material Weakness

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE East Valley School District No. 361 September 1, 2023 through August 31, 2024 This schedule presents the corrective action the District is planning to take for findings included in this report in accordance with Title 2 U.S. Code of...

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE East Valley School District No. 361 September 1, 2023 through August 31, 2024 This schedule presents the corrective action the District is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) PArt 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2024-001 Finding caption: The District did not have adequate internal controls and did not comply with time-and-effort requirements. Name, address, and telephone of District contact person: Neale Rasmussen, Executive Director of Business Services 3830 North Sullivan, Building 1 Spokane Valley, WA 99216 (509) 241-5042 Corrective action the auditee plans to take in response to the finding: The District has already updated time and effort processes to ensure mid-year additions or corrections are included on time and effort documentation. We have also added a secondary time and effort review process to ensure all employees charged to the Federal program are included on time and effort documentation. Anticipated date to complete the corrective action: Correction already completed.

View Audit 356042

Finding 559912 (2024-002)

Significant Deficiency 2024

Medford Housing Authority

MA

HUD Housing Programs Internal Control / Segregation of Duties Subrecipient Monitoring

2024-002 – REPORTING Auditee’s Response and Planned Corrective Action The Medford Housing Authority Fee Accountant has informed the Authority that she attempted to submit the Authority’s FDS Report in a timely manner. She further stated that she was unable to do so on December 15, 2024, as the HUD c...

2024-002 – REPORTING Auditee’s Response and Planned Corrective Action The Medford Housing Authority Fee Accountant has informed the Authority that she attempted to submit the Authority’s FDS Report in a timely manner. She further stated that she was unable to do so on December 15, 2024, as the HUD computer system was down thereby preventing her from timely submitting the report. Planned Implementation Date of Corrective Action: September 30, 2025 Person Responsible for Corrective Action: Jeffrey Driscoll, Executive Director

View Audit 355845

Finding 559829 (2024-004)

Material Weakness 2024

Kids Above All and Homes for Children Foundation

IL

Questioned Costs Procurement, Suspension & Debarment Allowable Costs / Cost Principles § 200.308 § 200.403

Finding 2024-004 – Material Weakness, Material Noncompliance – Allowable Costs/Activities (Repeat) Name of Contact Person: George Czerwionka, Director of Finance Corrective Action: Management will improve policies and procedures to record the purchase of gift cards as a prepaid transactions and expe...

Finding 2024-004 – Material Weakness, Material Noncompliance – Allowable Costs/Activities (Repeat) Name of Contact Person: George Czerwionka, Director of Finance Corrective Action: Management will improve policies and procedures to record the purchase of gift cards as a prepaid transactions and expense the gift cards when all allowable cost criteria are met. We will also get input from our funders when necessary. Proposed Completion Date: May 31, 2025

View Audit 355781 Questioned Costs: $1

Finding 559739 (2024-001)

Material Weakness 2024

Care Alliance Health Center

CT

Special Tests & Provisions Subrecipient Monitoring Eligibility

To Health Resources and Services Administration Care Alliance Health Center, Inc. respectfully submits the following corrective action plan for the year ended October 31, 2024. CohnReznick LLP 350 Church Street Hartford, CT 06103 Audit Period: October 31, 2024 The findings from the October 31, 2024 ...

To Health Resources and Services Administration Care Alliance Health Center, Inc. respectfully submits the following corrective action plan for the year ended October 31, 2024. CohnReznick LLP 350 Church Street Hartford, CT 06103 Audit Period: October 31, 2024 The findings from the October 31, 2024 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the number assigned in the schedule. Federal Award Findings: Finding 2024.001 - Special Tests and Provisions - Sliding Fee Scale Documentation Recommendation The Organization should establish a system of internal controls to ensure that all sliding fee discounts are properly calculated and supported based on family size and income. Action Taken We will invest the time and resources into improving all areas related to the Sliding Fee Scale. We will implement the following steps to our process to ensure all federal guidelines and requirements are met. 1. Documented Process: Design and implement an internal control process to ensure sliding fee discounts are accurately calculated based on family size and income. 2. Documented Procedures: Establish clear procedures and guidelines for front desk staff to follow when determining discounts, including appropriate documentation requirements, eligibility criteria, and fee structure. These procedures will be aligned with our written policy to ensure consistency and accuracy in discount calculations. 3. Training and Education: Provide training to front desk staff members responsible for determining eligibility and applying sliding fee discounts to ensure they understand the process. 4. Regular Reviews: Implement regular reviews and monthly audits to verify that all discounts are properly supported and documented. Quarterly reviews will be conducted to verify compliance, identify areas for improvement, and evaluate the effectiveness of the sliding scale fee program to ensure it meets our patients’ needs and complies with all federal guidelines. Care for you. Care for me. Care for all. Our mission is to provide high-quality, comprehensive medical and dental care, patient advocacy and related services to people who need them most, regardless of their ability to pay. info@carealliance.org • www.carealliance.org Responsible Parties: 1. The Controller and revenue cycle staff will develop the written procedure. 2. The Clinical Support Supervisor and revenue cycle staff will oversee the training. 3. The Revenue Cycle Manager will monitor adherence to the procedure, conduct regular monthly audits, and report results to the Controller. 4. The Controller will conduct quarterly documentation reviews of the internal audit results.

View Audit 355653

Finding 559732 (2024-001)

Material Weakness 2024

Central Valley School District No. 356

WA

Subrecipient Monitoring Internal Control / Segregation of Duties Procurement, Suspension & Debarment

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Central Valley School District No. 356 September 1, 2023 through August 31, 2024 This schedule presents the corrective action the District is planning to take for findings included in this report in accordance with Title 2 U.S. Code...

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Central Valley School District No. 356 September 1, 2023 through August 31, 2024 This schedule presents the corrective action the District is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2024-001 Finding caption: The District did not have adequate internal controls and did not comply with federal wage rate requirements Name, address, and telephone of District contact person: Mathew Knott, Director of Business Services 2218 N. Molter Road Liberty Lake, WA 99019 509-558-5437 Corrective action the auditee plans to take in response to the finding: The district paid its final invoices toward these projects on October 10, 2023 for work that was performed through September 2023. While we realize there was a communication breakdown, and federal certified payroll reports were not collected, the District has put internal controls in place to ensure it complies with federal wage rate requirements. The District’s Purchasing Manager is responsible for creating all purchase orders related to capital projects, including those using federal funds. Prior to any purchase order being created the Purchasing Manager will ensure all required paperwork from the vendor is submitted and reviewed. That includes communication to the vendor on the district’s expectations around submitting weekly certified payroll reports. The Purchasing Manager will track and document this weekly during the life of the project. Anticipated date to complete the corrective action: 4/1/2025

View Audit 355620

Finding 559670 (2024-002)

Material Weakness 2024

Sioux Falls Regional Airport Authority

SD

Reporting Material Weakness § 200.303 § 200.327 § 200.328

Finding 2024-002 Department of Transportation Airport Improvement Program, CFDA #20.106 AIP3 46 0050 59, AIP3 46 0050 62, AIP3 46 0050 63, and AIP3 46 0050 64 Finding Summary: The SF-425 annual report dated September 30, 2024, for award AIP3 46 0050 64 underreported the federal share of expenditu...

Finding 2024-002 Department of Transportation Airport Improvement Program, CFDA #20.106 AIP3 46 0050 59, AIP3 46 0050 62, AIP3 46 0050 63, and AIP3 46 0050 64 Finding Summary: The SF-425 annual report dated September 30, 2024, for award AIP3 46 0050 64 underreported the federal share of expenditures by $23,588, while the FAA Form 5100-127 annual report dated December 31, 2023, for all awards underreported the total capital expenditures and construction in progress by $2,729,962. Responsible Individuals: Dan Letellier, Executive Director Corrective Action Plan: Management will ensure correct support documentation is provided to 3rd party account for correct submission of FAA Forms 5100-127. Director will also verify that annual report form SF-425 reconciles to underlying supporting records. Anticipated Completion Date: Ongoing

View Audit 355550

Finding 559669 (2024-003)

Material Weakness 2024

Central Iowa Regional Housing Authority

IA

HUD Housing Programs Subrecipient Monitoring Material Weakness

The Central Iowa Regional Housing Authority (CIRHA) agrees with the finding. The Executive Director (E.D.) will discuss details of the finding with the Fee Accountant and take any necessary steps. Monthly/annual financial reports and/or submissions will be reviewed at a more in depth level by the ...

The Central Iowa Regional Housing Authority (CIRHA) agrees with the finding. The Executive Director (E.D.) will discuss details of the finding with the Fee Accountant and take any necessary steps. Monthly/annual financial reports and/or submissions will be reviewed at a more in depth level by the E.D. The above corrective actions will be completed by May 15, 2025.

View Audit 355549

Finding 559668 (2024-002)

Material Weakness 2024

Central Iowa Regional Housing Authority

IA

Material Weakness Matching / Level of Effort / Earmarking

The Central Iowa Regional Housing Authority (CIRHA) agrees with the finding. CIRHA has corrected the material weakness/noncompliance by: reviewing Notice PIH 2023-014, discontinuing issuance of EHV’s when contacted by the EHV QAD Team in July 2024, re-issuing EHV’s issued in violation with HCV’s by...

The Central Iowa Regional Housing Authority (CIRHA) agrees with the finding. CIRHA has corrected the material weakness/noncompliance by: reviewing Notice PIH 2023-014, discontinuing issuance of EHV’s when contacted by the EHV QAD Team in July 2024, re-issuing EHV’s issued in violation with HCV’s by September 01, 2024; cooperating with the EHV QAD Team to determine/verify the amount of HAP received and Administrative Fees that were earned in error and payback procedure. The above corrective actions have been completed.

View Audit 355549

Finding 559258 (2024-001)

Material Weakness 2024

Kansas Hospital Association

KS

Subrecipient Monitoring Material Weakness Reporting

Identification: 93.889 United States Department of Health and Human Services, COVID-19 National Bioterrorism Hospital Preparedness Program, Noncompliance Finding/Material Weakness; Reporting Compliance Requirement. Corrective Action Plan: The Association will strengthen controls of federal grant rep...

Identification: 93.889 United States Department of Health and Human Services, COVID-19 National Bioterrorism Hospital Preparedness Program, Noncompliance Finding/Material Weakness; Reporting Compliance Requirement. Corrective Action Plan: The Association will strengthen controls of federal grant reporting for future awards so that any FFATA reporting requirements are completed in a timely manner. The Association will also modify the amount of the two subawards that were reported incorrectly in the Federal Funding Accountability and Transparency Act Subaward Reporting System. Anticipated completion date: The Association anticipates completion in 2025.

View Audit 355477

Finding 559153 (2024-005)

Material Weakness 2024

Catholic Charities Community Services, Inc. and Subsidiaries

AZ

Material Weakness Reporting Internal Control / Segregation of Duties

Item: 2024-005 Assistance Listing Number: 64.024 Program: VA Homeless Providers Grant and Per Diem Program Federal Agency: U.S. Department of Veterans Affairs Pass-Through Agencies: n/a Compliance Requirement: Reporting Criteria: In accordance with the grant agreements, the Organization is require...

Item: 2024-005 Assistance Listing Number: 64.024 Program: VA Homeless Providers Grant and Per Diem Program Federal Agency: U.S. Department of Veterans Affairs Pass-Through Agencies: n/a Compliance Requirement: Reporting Criteria: In accordance with the grant agreements, the Organization is required to submit per diem financial reports requesting payment based on the units of service provided multiplied by a per diem rate as specified in the grant agreement. Condition: In preparation of the per diem financial reports, the incorrect per diem rate was used to calculate the amount requested for payment for two reports. Name of Contact Person: Ana Pabon, Controller Phone Number: (602) 650-4852 Anticipated Completion Date: March 31, 2026 Views of Responsible Officials and Corrective Actions: The Organization will implement additional controls to ensure updates to the per diem rates are identified timely. The Organization will also implement additional controls to ensure reports are reviewed and approved prior to submission to the granting agency. This review and approval will be clearly documented. The Organization also notes that this program has ended as of September 30, 2024.

View Audit 355383

Finding 559152 (2024-004)

Material Weakness 2024

Catholic Charities Community Services, Inc. and Subsidiaries

AZ

Cash Management Material Weakness Reporting

Item: 2024-004 Assistance Listing Number: 64.024 Program: VA Homeless Providers Grant and Per Diem Program Federal Agency: U.S. Department of Veterans Affairs Pass-Through Agencies: n/a Compliance Requirement: Reporting Criteria: In accordance with the grant agreements, the Organization is require...

Item: 2024-004 Assistance Listing Number: 64.024 Program: VA Homeless Providers Grant and Per Diem Program Federal Agency: U.S. Department of Veterans Affairs Pass-Through Agencies: n/a Compliance Requirement: Reporting Criteria: In accordance with the grant agreements, the Organization is required to submit monthly requests for reimbursement. Controls should be in place to ensure review and approval of these monthly reports prior to submission to the granting agency. Condition: Of the nine reports tested, there was no evidence of management review or approval for one of the reports prior to submission to the granting agency. Name of Contact Person: Ana Pabon, Controller Phone Number: (602) 650-4852 Anticipated Completion Date: March 31, 2026 Views of Responsible Officials and Corrective Actions: The Organization will implement additional controls to ensure reports are reviewed and approved prior to submission to the granting agency. This review and approval will be clearly documented.

View Audit 355383

Finding 559150 (2024-003)

Material Weakness 2024

Catholic Charities Community Services, Inc. and Subsidiaries

AZ

Cash Management Material Weakness Reporting

Item: 2024-003 Assistance Listing Number: 64.033 Program: VA Supportive Services for Veteran Families Program Federal Agency: U.S. Department of Veterans Affairs Pass-Through Agencies: n/a Compliance Requirement: Reporting Criteria: In accordance with the grant agreements, the Organization is requir...

Item: 2024-003 Assistance Listing Number: 64.033 Program: VA Supportive Services for Veteran Families Program Federal Agency: U.S. Department of Veterans Affairs Pass-Through Agencies: n/a Compliance Requirement: Reporting Criteria: In accordance with the grant agreements, the Organization is required to submit monthly requests for reimbursement. Controls should be in place to ensure review and approval of these monthly reports prior to submission to the granting agency. Condition: For four reports tested, there was no evidence of management review or approval of the reports prior to submission to the granting agency. Name of Contact Person: Ana Pabon, Controller Phone Number: (602) 650-4852 Anticipated Completion Date: March 31, 2026 Views of Responsible Officials and Corrective Actions: The Organization will implement additional controls to ensure reports are reviewed and approved prior to submission to the granting agency. This review and approval will be clearly documented.

View Audit 355383

Finding 559145 (2024-002)

Material Weakness 2024

Catholic Charities Community Services, Inc. and Subsidiaries

AZ

Cash Management Material Weakness Reporting

Item: 2024-002 Assistance Listing Number: 93.566 Program: Refugee and Entrant Assistance - State/Replacement Designee Administered Programs Federal Agency: U.S. Department of Health and Human Services Pass-Through Agencies: Arizona Department of Economic Security Compliance Requirement: Reporting C...

Item: 2024-002 Assistance Listing Number: 93.566 Program: Refugee and Entrant Assistance - State/Replacement Designee Administered Programs Federal Agency: U.S. Department of Health and Human Services Pass-Through Agencies: Arizona Department of Economic Security Compliance Requirement: Reporting Criteria: In accordance with the grant agreements, the Organization is required to submit monthly requests for reimbursement. Controls should be in place to ensure review and approval of these monthly reports prior to submission to the granting agency. Condition: For seven reports tested, there was no evidence of management review or approval of the reports prior to submission to the granting agency. Name of Contact Person: Ana Pabon, Controller Phone Number: (602) 650-4852 Anticipated Completion Date: March 31, 2026 Views of Responsible Officials and Corrective Actions: The Organization will implement additional controls to ensure reports are reviewed and approved prior to submission to the granting agency. This review and approval will be clearly documented.

View Audit 355383

Finding 559087 (2024-009)

Material Weakness 2024

County of Ventura

CA

Reporting Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303 § 200.510

Finding 2024-009 Program: CDBG-Entitlement/Special Purpose Grants Cluster Assistance Listing No.: 14.218 Federal Grantor: U.S. Department of Housing and Urban Development Passed-through: Direct Award and Pass-Through City of San Buenaventura Award No.: B-20-UC-06-0507, B-20-UW-06-0507, B-21-UC-06-05...

Finding 2024-009 Program: CDBG-Entitlement/Special Purpose Grants Cluster Assistance Listing No.: 14.218 Federal Grantor: U.S. Department of Housing and Urban Development Passed-through: Direct Award and Pass-Through City of San Buenaventura Award No.: B-20-UC-06-0507, B-20-UW-06-0507, B-21-UC-06-0507, B-22-UC-06-0507, B-23-UC-06-0507, 95-6000807 Year: 2024 Compliance Requirement: Other - Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) §200.510(b) - Schedule of Expenditures of Federal Awards Type of Finding: Material Weakness in Internal Control over Compliance Department’s Management Response: Management agrees with the recommendation that the County enhance internal controls to ensure payments to subrecipients are appropriately reported on the SEFA. View of Responsible Officials and Corrective Action: To ensure compliance with §200.510(b) of the Uniform Guidance, the Auditor-Controller’s Office will provide additional detailed instructions when requesting departmental information for the County’s SEFA including obtaining expenditure details to support costs reported for subrecipients. In addition, a countywide training session will be conducted to assist departments in accurately completing the request. Name of Responsible Persons: Jason McGuire, Deputy Director, Auditor-Controller Implementation Date: August 2025

View Audit 355375

Finding 559086 (2024-008)

Material Weakness 2024

County of Ventura

CA

Subrecipient Monitoring Reporting Material Weakness § 200.303

Finding 2024-008 Program: CDBG-Entitlement/Special Purpose Grants Cluster Assistance Listing No.: 14.218 Federal Grantor: U.S. Department of Housing and Urban Development Passed-through: Direct Award and Pass-Through City of San Buenaventura Award No.: B-20-UC-06-0507, B-20-UW-06-0507, B-21-UC-06-05...

Finding 2024-008 Program: CDBG-Entitlement/Special Purpose Grants Cluster Assistance Listing No.: 14.218 Federal Grantor: U.S. Department of Housing and Urban Development Passed-through: Direct Award and Pass-Through City of San Buenaventura Award No.: B-20-UC-06-0507, B-20-UW-06-0507, B-21-UC-06-0507, B-22-UC-06-0507, B-23-UC-06-0507, 95-6000807 Year: 2024 Compliance Requirement: Reporting Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Department’s Management Response: The County Executive Office’s Community Development Management agrees with the recommendation that the County implements internal controls to ensure subaward information is reviewed by management and submitted timely in accordance with the FFATA. View of Responsible Officials and Corrective Action: The County’s CDBG Policies and Procedures Manual was revised in April 2025 to address the review and timely submission of reports to ensure compliance with program requirements. CDBG program reports shall be reviewed by an independent staff member prior to submission, and documentation of this review and timely submission shall be maintained in the program’s official files. Name of Responsible Persons: Mary Ann Guariento, CDBG Program Management Analyst Kimberlee Albers, Deputy Executive Officer Implementation Date: April 7, 2025

View Audit 355375

Finding 559078 (2024-001)

Material Weakness 2024

Montpelier Housing Authority

VT

HUD Housing Programs Material Weakness Internal Control / Segregation of Duties § 200.514

RE: Audit Finding-Missing EIV Reports Montpelier Housing Authority Audit Finding Response: The auditor reviewed the finding with me and the following action plan was put in place to ensure that key EIV reports are run on a scheduled basis and appropriate actions are taken: • Policies and procedures ...

RE: Audit Finding-Missing EIV Reports Montpelier Housing Authority Audit Finding Response: The auditor reviewed the finding with me and the following action plan was put in place to ensure that key EIV reports are run on a scheduled basis and appropriate actions are taken: • Policies and procedures surrounding EIV were reviewed. •We implemented the use of a chart to prompt EIV reports within 90 days for new moveins. (see attached chart) •We already monitor EIV monthly and quarterly to ensure that EIV reports are run for all move-ins and re-certifications. This action plan is effective immediately, as of the date of this letter, February 17,2025.

View Audit 355365

Finding 559034 (2024-002)

Material Weakness 2024

Santa Monica Christian Towers, Inc. Hud Project No. 122sh088

CA

Questioned Costs Special Tests & Provisions HUD Housing Programs

The Managing Agent has requested and received authorization from HUD for the expenditure of funds from the Operating Account related to the design and planning of the Seismic Retrofit. The Managing Agent restored the funds expended from the Replacement Reserve Account from the Operating Account in F...

The Managing Agent has requested and received authorization from HUD for the expenditure of funds from the Operating Account related to the design and planning of the Seismic Retrofit. The Managing Agent restored the funds expended from the Replacement Reserve Account from the Operating Account in February 2025, subsequent to year-end. Management changes (including a revision of leadership) as well as a better understanding of HUD requirements will ensure this error does not happen again.

View Audit 355300 Questioned Costs: $1

Finding 558975 (2024-001)

Material Weakness 2024

City of Diamond Bar

CA

Subrecipient Monitoring Material Weakness Reporting

Corrective Action: The City acknowledges the finding regarding noncompliance with the continuing loan monitoring requirements for the Community Development Block Grant (CDBG) Home Improvement Program. We recognize the importance of ensuring full compliance with all grant requirements to maintain the...

Corrective Action: The City acknowledges the finding regarding noncompliance with the continuing loan monitoring requirements for the Community Development Block Grant (CDBG) Home Improvement Program. We recognize the importance of ensuring full compliance with all grant requirements to maintain the integrity and effectiveness of the program. Training and Awareness: The City will provide comprehensive training to all relevant staff/consultants on the continuing loan monitoring requirements outlined in the LACDA grant agreement and CDBG program guidelines. Training sessions will be completed by June 30, 2026. Policy and Procedure Updates: The City will review and update its internal policies and procedures to clearly document the continuing loan monitoring process. A standardized compliance checklist and loan monitoring schedule will be developed to ensure consistent implementation across all loans. Loan Monitoring and Documentation: By June 30, 2026 the City will implement a regular schedule for evaluating outstanding loans, including, borrower compliance reviews, and follow-up actions where necessary. All monitoring activities will be fully documented and retained in each loan file. Ongoing Oversight: Management will assign a designated staff member/consultant responsible for overseeing the continuing loan compliance process, ensuring ongoing adherence to program requirements and addressing any issues promptly. The City is committed to strengthening internal controls, ensuring compliance with grant requirements, and maintaining the credibility of the Home Improvement Program. Proposed Completion Date: The corrective actions outlined above will be fully implemented by June 30, 2026.

View Audit 355203

Finding 558862 (2024-065)

Material Weakness 2024

State of Washington C/o Office of Financial Management

WA

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

Finding: The Community Colleges of Spokane did not have adequate controls over and did not comply with program governance requirements for its Head Start program. Questioned Costs: Assistance Listing # 93.600 Status: Corrective action in progress Corrective Action: The College District will...

Finding: The Community Colleges of Spokane did not have adequate controls over and did not comply with program governance requirements for its Head Start program. Questioned Costs: Assistance Listing # 93.600 Status: Corrective action in progress Corrective Action: The College District will enhance our monthly financial reporting to include a unique identifier for monthly expenditures. Additionally, a report of expenditures procured by credit card will be attached to the regular financial report. The College District acknowledges the importance of clear documentation and tracking of the required training and meeting attendance by all Board of Trustees members and Policy Council members. Beginning in March 2025, the College District started providing additional methods and opportunities for new members to receive fiscal and governance training. To strengthen controls over program governance requirements and to demonstrate the commitment to continuous improvement of existing processes, the College District will further document training completion and the distribution of monthly financial information to all members. Completion Date: Estimated June 2025 Agency Contact: Linda McDermott Chief Financial Officer 501 N Riverpoint Blvd, PO Box 6000 Spokane, WA 99217-6000 (509) 434-5275 Linda.McDermott@ccs.spokane.edu

View Audit 355165

Finding 558861 (2024-064)

Material Weakness 2024

State of Washington C/o Office of Financial Management

WA

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

Finding: Skagit Valley College did not have adequate internal controls over and did not comply with program governance requirements for its Head Start program. Questioned Costs: Assistance Listing # 93.600 Amount $0 Status: Corrective action complete Corrective Action: The College has rev...

Finding: Skagit Valley College did not have adequate internal controls over and did not comply with program governance requirements for its Head Start program. Questioned Costs: Assistance Listing # 93.600 Amount $0 Status: Corrective action complete Corrective Action: The College has reviewed and strengthened current internal controls to ensure the Board receives the required financial and credit card statements monthly and that all new Board members receive training within the required 180 days. Financial reporting procedures The Head Start Program Director prepares monthly reporting to be available for inclusion in the monthly board packet, or as requested. In January 2025, the Procedures of Policy Council and Board Reporting were updated to ensure that required monthly reporting is provided to each governing body, regardless of whether there is a scheduled meeting for that month. This procedure became effective for the February 2025 Board of Trustees meeting. All financial reporting that was not previously provided to the Board of Trustees for the period covering July 1, 2023, through December 31, 2024, was transmitted on February 24, 2025. Board member training In January 2025, the Head Start Director provided the Board of Trustees an updated document on the program’s selection criteria and enrollment process. Additionally, the Head Start Board of Trustees Handbook, which has incorporated other training materials, was provided to each board member. The Head Start Director will conduct an annual review of the handbook content and update as appropriate to ensure training materials remain current. Completion Date: March 2025 Agency Contact: Mike Cogan VP of Administrative Services and CFO 2405 East College Way Mount Vernon, WA 98273-5899 (360) 899-2945 mike.cogan@skagit.edu

View Audit 355165

Finding 558860 (2024-063)

Material Weakness 2024

State of Washington C/o Office of Financial Management

WA

Internal Control / Segregation of Duties Subrecipient Monitoring Eligibility

Finding: Edmonds College did not have adequate internal controls over and did not comply with program governance requirements for its Head Start program. Questioned Costs: Assistance Listing # 93.600 Status: Corrective action in progress Corrective Action: In response to the audit finding, ...

Finding: Edmonds College did not have adequate internal controls over and did not comply with program governance requirements for its Head Start program. Questioned Costs: Assistance Listing # 93.600 Status: Corrective action in progress Corrective Action: In response to the audit finding, the College will explore options for a Governing Body that complies with governance requirements for the Head Start program. By May 2025, the College will consult with its Assistant Attorney General to discuss the composition of a new Governing Body and will take the necessary steps to fully comply with federal regulations. By July 2025, the College will: • Establish a Governing Body that is compliant with requirements outlined in the Head Start Act to perform the required monthly review of financial and credit card statements, major financial expenditures, and any funding applications. • Ensure the Policy Council receives and approves the required financial and credit card statements each month. • Provide training to the new Governing Body and active members of the Policy Council within the required 180 days. Completion Date: Estimated July 2025 Agency Contact: Ginger Williams Head Start Executive Director 20816 44th Ave. W. Lynnwood, WA 98036-7744 (425) 550-3840 ginger.williams@edmonds.edu

View Audit 355165

Finding 558859 (2024-062)

Material Weakness 2024

State of Washington C/o Office of Financial Management

WA

Subrecipient Monitoring Equipment & Real Property Management Internal Control / Segregation of Duties

Finding: Edmonds College did not have adequate internal controls over and did not comply with protection of federal interest requirements for its Head Start program. Questioned Costs: Assistance Listing # 93.600 Amount $0 Status: Corrective action complete Corrective Action: In response ...

Finding: Edmonds College did not have adequate internal controls over and did not comply with protection of federal interest requirements for its Head Start program. Questioned Costs: Assistance Listing # 93.600 Amount $0 Status: Corrective action complete Corrective Action: In response to the audit finding, Edmonds College has completed the following: • Established a written protocol with the Department of Enterprise Services (DES) to ensure the Head Start Program Performance Standards 1303.46 is met in recording and posting federal interest. • Established internal controls to ensure college management monitor future work with DES to properly complete the Office of Head Start Lease Rider attachment in the lease agreements where federal funds are used to renovate leased property. Completion Date: February 2025 Agency Contact: Ginger Williams Head Start Executive Director 20816 44th Ave. W. Lynnwood, WA 98036-7744 (425) 550-3840 ginger.williams@edmonds.edu

View Audit 355165

Corrective Action Plans

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