Corrective Action Plans

Finding 1238156 (2025-004)

Material Weakness 2025

IN

Subrecipient Monitoring Procurement, Suspension & Debarment Material Weakness § 200.303 § 200.343

FINDING 2025-004 Finding Subject: Federal Transit Cluster – Period of Performance Contact Person Responsible for Corrective Action: Jessica Thome, Controller Contact Phone Number and Email Address: (812) 244-2360 and Jessica.Thome@terrehaute.in.gov Views of Responsible Officials: We concur with the ...

FINDING 2025-004 Finding Subject: Federal Transit Cluster – Period of Performance Contact Person Responsible for Corrective Action: Jessica Thome, Controller Contact Phone Number and Email Address: (812) 244-2360 and Jessica.Thome@terrehaute.in.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: We will be implementing a system where an employee double checks all invoice dates. We will also ask our FE Representative if they can create a report to add invoice dates. Anticipated Completion Date: 10/31/2026

View Audit 413088

Finding 1238155 (2025-003)

Material Weakness 2025

City of Terre Haute

IN

Allowable Costs / Cost Principles Subrecipient Monitoring Material Weakness § 200.303 § 200.308 § 200.403

FINDING 2025-003 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – Period of Performance Contact Person Responsible for Corrective Action: Jessica Thome, Controller Contact Phone Number and Email Address: (812) 244-2360 and Jessica.Thome@terrehaute.in.gov Views of Respo...

FINDING 2025-003 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – Period of Performance Contact Person Responsible for Corrective Action: Jessica Thome, Controller Contact Phone Number and Email Address: (812) 244-2360 and Jessica.Thome@terrehaute.in.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The City will reclass the expense. Anticipated Completion Date: 10/31/2026

View Audit 413088

Finding 1238124 (2025-004)

Material Weakness 2025

Crawford County

IN

Internal Control / Segregation of Duties Procurement, Suspension & Debarment Allowable Costs / Cost Principles § 200.1 § 200.303

FINDING 2025-004 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – Reporting Summary of Findings: Material Weakness, Modified Opinion The information submitted included amounts based on the incorrect period, amounts that should have been omitted, and amounts which were ...

FINDING 2025-004 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – Reporting Summary of Findings: Material Weakness, Modified Opinion The information submitted included amounts based on the incorrect period, amounts that should have been omitted, and amounts which were based on budgeted amounts instead of actual amounts, as such the reports were not fairly presented. Errors identified included the following:  Total Current Obligations for Government Services were overstated by $145,000.  Total Current Obligations for Roundabout were overstated by $323,628.  Total Current Obligations for Fairgrounds were overstated by $97,362. Contact Person Responsible for Corrective Action Plan: Janet Lloyd, Clinton County Auditor Contact’s Phone Number: 765.659.6330 Contact’s Email Address: jlloyd@clintoncountyin.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The Auditor did take tremendous care to create a spreadsheet to make sure expenditures were reported in the correct time periods for 2025. However, there were reporting errors. The First Deputy will review the timeframe and expenditures as well as we will ensure there are several sets of eyes on the documentation before submitting the P&E report. We will have both the Auditor and First Deputy create the spreadsheet and review and sign before submitting. Anticipated Completion Date: December 31, 2026

View Audit 413007

Finding 1238109 (2025-005)

Material Weakness 2025

Renville County

MN

Subrecipient Monitoring Eligibility Material Weakness § 200.303

CORRECTIVE ACTION PLAN (CAP): 1. Explanation of Disagreement with Audit Findings: There is no disagreement with the audit finding. 2. Actions Planned in Response to Finding: The County will reinforce procedures requiring eligibility workers to maintain adequate documentation supporting all income so...

CORRECTIVE ACTION PLAN (CAP): 1. Explanation of Disagreement with Audit Findings: There is no disagreement with the audit finding. 2. Actions Planned in Response to Finding: The County will reinforce procedures requiring eligibility workers to maintain adequate documentation supporting all income sources used in Medical Assistance eligibility determinations. Supervisory reviews will be performed periodically to ensure case files contain the necessary supporting documentation and that eligibility calculations agree to information maintained in the case record. 3. Official Responsible for Ensuring CAP: Lisa Herges, County Administrator, is the official responsible for ensuring corrective action of the compliance finding. 4. Planned Completion Date for CAP: December 31, 2026 5. Plan to Monitor Completion of CAP: The County Board will be monitoring this corrective action plan. Sincerely, Lisa Herges County Administrator

View Audit 412976

Finding 1238064 (2025-002)

Material Weakness 2025

Newport News Redevelopment and Housing Authority

VA

HUD Housing Programs Material Weakness

Housing Voucher Cluster - Assistance Listing Nos. 14.871/14.879 - Housing Voucher Cluster - Housing Quality Standards (HQS) Inspections and Enforcement Recommendation: We recommend the Authority review its HQS inspection process to ensure that inspections are performed timely and that all inspection...

Housing Voucher Cluster - Assistance Listing Nos. 14.871/14.879 - Housing Voucher Cluster - Housing Quality Standards (HQS) Inspections and Enforcement Recommendation: We recommend the Authority review its HQS inspection process to ensure that inspections are performed timely and that all inspection related documentation is maintained within Yardi or the tenant file. We recommend the Authority review its processes for tracking failed inspections to ensure that the proper actions are taken timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The HCV Senior Inspector runs reports monthly to ensure all inspections are made on a timely basis. For failed inspections, the HCV Senior Inspector reviews all inspections on a daily basis and tracks failed inspections and reports to the HCV Program Manager. The Program Manager will also track the failed inspections and the date to reinspect. Name of the contact person responsible for corrective action: Tera L. Lockley Planned completion date for corrective action plan: December 31 , 2026

View Audit 412876

Finding 1238061 (2025-001)

Material Weakness 2025

Newport News Redevelopment and Housing Authority

VA

HUD Housing Programs Material Weakness

Housing Voucher Cluster - Assistance Listing Nos. 14.871/14.879 - Special Tests - Reasonable Rent Recommendation: We recommend the Authority review their processes and internal controls for rent reasonableness to ensure the reasonableness determination is completed prior to the effective date of the...

Housing Voucher Cluster - Assistance Listing Nos. 14.871/14.879 - Special Tests - Reasonable Rent Recommendation: We recommend the Authority review their processes and internal controls for rent reasonableness to ensure the reasonableness determination is completed prior to the effective date of the HUD-50058 Family Report Form. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The HCV Department procedure is that the coordinators receive the Request for Tenancy Approval form from the client's prospective landlord and that is immediately forwarded to the Landlord Liaison who performs the rent reasonableness test and then forwarded to the Inspection department to perform an inspection. All these steps take place prior to the effective date of the 50058. Name of the contact person responsible for corrective action: Tera L. Lockley Planned completion date for corrective action plan: December 31 , 2026

View Audit 412876

Finding 1238058 (2025-005)

Material Weakness 2025

City of Aberdeen

SD

Material Weakness Reporting Internal Control / Segregation of Duties § 200.328

Finding 2025-005 Federal Agency Name: Department of Treasury Pass-Through Entity: South Dakota Department of Agriculture and Natural Resources Assistance Listing Number: 21.027 Program Name: Coronavirus State and Local Fiscal Recovery Funds Finding Summary: There was no review performed of the requi...

Finding 2025-005 Federal Agency Name: Department of Treasury Pass-Through Entity: South Dakota Department of Agriculture and Natural Resources Assistance Listing Number: 21.027 Program Name: Coronavirus State and Local Fiscal Recovery Funds Finding Summary: There was no review performed of the required annual report prior to its submission to ensure the accuracy and completeness of the reported information. Corrective Action Plan: The City will revise its reporting procedures to provide for a separate preparer and reviewer of required federal program reports. The reviewer will review the report for accuracy and completeness prior to submission, and completion of the review will be documented. Responsible Individual(s): Jordan McQuillen, Finance Officer Anticipated Completion Date: December 2026

View Audit 412872

Finding 1238051 (2025-001)

Material Weakness 2025

NORTHEAST NEBRASKA PUBLIC POWER DISTRICT

NE

Reporting Material Weakness

Federal Agency Name: Department of Energy Pass-Through Entity: Nebraska Department of Environment and Energy Assistance Listing Number: 81.254 Program Name: Grid Infrastructure Deployment and Resilience Finding Summary: The District does not have an internal control system designed to provide for a ...

Federal Agency Name: Department of Energy Pass-Through Entity: Nebraska Department of Environment and Energy Assistance Listing Number: 81.254 Program Name: Grid Infrastructure Deployment and Resilience Finding Summary: The District does not have an internal control system designed to provide for a complete and accurate schedule of federal expenditures of federal awards (the schedule) being audited. We requested our auditors to assist with the preparation of the schedule and the accompanying notes to the schedule. Corrective Action Plan: Due to the specialized nature of the SEFA, the District will continue to utilize qualified external assistance with its preparation. Management will maintain the underlying federal award and expenditure records and will review the completed SEFA and accompanying notes for completeness and accuracy prior to issuance. Responsible Individuals: Mandy Backer, Chief Financial Officer, and Josh Strafelda, Engineer Anticipated Completion Date: Ongoing

View Audit 412863

Finding 1237997 (2025-002)

Material Weakness 2025

Greenwich Communities (f/ka)housing Authority of the Town of Greenwich

CT

Subrecipient Monitoring HUD Housing Programs Eligibility

Greenwich Communities accepts the audit finding that electronic income verification was not performed timely in twenty-nine instances, and we have already implemented corrective actions to resolve the issue. Corrective Actions Completed: • Targeted Training was provided to the manager responsible fo...

Greenwich Communities accepts the audit finding that electronic income verification was not performed timely in twenty-nine instances, and we have already implemented corrective actions to resolve the issue. Corrective Actions Completed: • Targeted Training was provided to the manager responsible for income verifications. • Process Review sessions ensured that the manager fully understands the correct verification workflow and strict compliance deadlines. • Updated Tracking mechanisms were put in place to flag pending verifications before they become overdue. Preventive Measures: • Regular Monitoring by supervisors will catch any delayed verifications immediately. • Monthly Checks will ensure staff continue to follow the correct timeline for electronic income verification.

View Audit 412825

Finding 1237971 (2025-002)

Material Weakness 2025

Lake County General Health District

OH

Subrecipient Monitoring Reporting Material Weakness § 200.208 § 200.328

Finding Number: 2025-002 Planned Corrective Action: Board of Elections has been provided with additional training by the Commissioners Finance staff on grant management and reporting. Necessary reports were filed with Secretary of State as required for the current fiscal year. Anticipated Completion...

Finding Number: 2025-002 Planned Corrective Action: Board of Elections has been provided with additional training by the Commissioners Finance staff on grant management and reporting. Necessary reports were filed with Secretary of State as required for the current fiscal year. Anticipated Completion Date: 08/31/2026 Responsible Contact Person: Dante Lewis, Board of Elections Director

View Audit 412751

Finding 1237970 (2025-002)

Material Weakness 2025

Cahaba Medical Care Foundation

AL

Allowable Costs / Cost Principles Material Weakness Significant Deficiency § 200.430

Corrective action planned Effective in fiscal year 2026, the Organization will implement a time and effort reporting process for employees whose compensation is charged, in whole or in part, to federal awards. Actual time and effort will be documented and reviewed on a regular basis to support payro...

Corrective action planned Effective in fiscal year 2026, the Organization will implement a time and effort reporting process for employees whose compensation is charged, in whole or in part, to federal awards. Actual time and effort will be documented and reviewed on a regular basis to support payroll allocations. Where budget estimates are used for interim allocations, management will perform periodic reconciliations to actual activity and make timely adjustments as necessary. Policies and procedures will be updated, and relevant personnel will receive training on Uniform Guidance requirements related to personnel expense reporting and allocation. Anticipated completion date December 31, 2026 Contact person responsible for corrective action Chief Financial Officer

View Audit 412747

Finding 1237946 (2025-006)

Material Weakness 2025

City of Vincennes

IN

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Material Weakness § 200.1 § 200.302 § 200.303 § 200.328 § 200.329

FINDING 2025-006 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Catherine MM Lane Contact Phone Number and Email Address: 812-677-3959 clane@vincennes.in.gov Views of Responsible Officials: We concur with th...

FINDING 2025-006 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Catherine MM Lane Contact Phone Number and Email Address: 812-677-3959 clane@vincennes.in.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: All reports will be prepared by the clerk’s office and will be reviewed for errors and omissions by someone who is knowledgeable about the reporting requirements prior to submission. Anticipated Completion Date: The corrective action plan will be implemented by December 31, 2026.

View Audit 412721

Finding 1237943 (2025-003)

Material Weakness 2025

City of Vincennes

IN

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

FINDING 2025-003 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds – Activities Allowed or Unallowed Contact Person Responsible for Corrective Action: Catherine MM Lane Contact Phone Number and Email Address: 812-882-6426 clane@vincennes.in.gov Views of Responsible Offici...

FINDING 2025-003 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds – Activities Allowed or Unallowed Contact Person Responsible for Corrective Action: Catherine MM Lane Contact Phone Number and Email Address: 812-882-6426 clane@vincennes.in.gov Views of Responsible Officials: We concur with the findings. Description of Corrective Action Plan: The Clerk-Treasurer’s office will prepare APV for all claims, including those related to payroll benefits. The APVs will be included on the claims docket which will be presented to the City Council for their review and approval. Additionally, the Clerk-Treasurer will certify each claim prior to payment. Anticipated Completion Date: The corrective action plan will be implemented by December 31, 2026.

View Audit 412721

Finding 1237930 (2025-002)

Material Weakness 2025

Cincinnati Health Network, Inc.

OH

Material Weakness Reporting Internal Control / Segregation of Duties § 200.303

There is no disagreement with the audit finding. Action planned in response to finding: Management concurs with the finding. The Organization recognizes that documentation and reconciliation procedures supporting the Uniform Data System (UDS) submission were not sufficient to demonstrate the accurac...

There is no disagreement with the audit finding. Action planned in response to finding: Management concurs with the finding. The Organization recognizes that documentation and reconciliation procedures supporting the Uniform Data System (UDS) submission were not sufficient to demonstrate the accuracy and completeness of all reported data elements. During 2026, management will implement formal procedures requiring each UDS reporting element to be supported by documented source data, reconciled to underlying records, and independently reviewed prior to submission. These procedures will include a pre-submission review checklist and internal timeline so that all reconciliations and supporting documentation are completed and reviewed in advance of the UDS reporting deadline. Responsibility for preparation, review, and approval of UDS reporting will be formally assigned and documented. To strengthen this review, management plans to hire additional senior management personnel, including an Accounting Manager, to support the Accounting Department and oversee reconciliation of the UDS financial tables (Tables 8A, 9D, and 9E) to the general ledger and audited financial statements. In addition, management plans to hire a Director of Risk and Compliance, who will be responsible for overseeing the Organization's compliance with HRSA Health Center Program requirements, including the UDS reporting process. The Director of Risk and Compliance will perform an independent review of the completed UDS submission prior to certification, verifying that each reported data element is supported by documented source data and reconciliations, and will periodically monitor adherence to the procedures described in this response, with results reported to the Chief Executive Officer (CEO) and the Board of Directors. Any discrepancies identified before or after submission will be documented, investigated, and corrected in a timely manner, including through the HRSA UDS review and revision process where applicable. Management will also provide additional training to all staff involved in collecting, preparing, and reviewing UDS data, covering HRSA UDS reporting requirements, data definitions, and documentation standards. In addition, management will establish document retention procedures to ensure all supporting schedules, reconciliations, and reports are maintained in a centralized location and readily available for future review. New policies requiring timely account reconciliations and the retention of supporting records will be monitored and reviewed regularly by the Chief Financial Officer (CFO) to ensure they are consistently followed. Name(s) of the contact person(s) responsible for corrective action: Edward Murphy, Asante Muyungga, Charity Gutierrez, Anthony Parker, Bennett Baber, Jannell Robinson. Planned completion date for corrective action plan: June 30th, 2027

View Audit 412715

Finding 1237684 (2025-002)

Material Weakness 2025

Safe Haven Family Shelter, Inc.

TN

HUD Housing Programs Material Weakness Internal Control / Segregation of Duties

Continuum of Care – Assistance Listing No. 14.267 Recommendation: We recommend that management implement and maintain procedures to ensure rent reasonableness determinations are performed, documented, and retained for all units receiving rental assistance prior to the first lease payment, on an annu...

Continuum of Care – Assistance Listing No. 14.267 Recommendation: We recommend that management implement and maintain procedures to ensure rent reasonableness determinations are performed, documented, and retained for all units receiving rental assistance prior to the first lease payment, on an annual basis, and if rental rates charged for the same unit are increased. Such documentation should be maintained in participant files and preserved in accordance with federal record retention requirements to support compliance with HUD regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization acknowledges that rent reasonableness assessments were not performed and documented during the period under audit. To address this issue, the Organization will implement procedures requiring completion and documentation of a rent reasonableness review prior to approving rental assistance payments. Additionally, the Organization will maintain supporting documentation in participant files and conduct periodic reviews to ensure compliance with HUD rent reasonableness requirements. Name(s) of the contact person(s) responsible for corrective action: Jennifer Reason, COO Planned completion date for corrective action plan: 8/1/2026 If the US Department of Housing and Urban Development has questions regarding this plan, please call Ben Pinon at 615-256-8195 ext. 125.

View Audit 412620

Finding 1237680 (2025-001)

Material Weakness 2025

Safe Haven Family Shelter, Inc.

TN

Material Weakness Internal Control / Segregation of Duties

Recommendation: We recommend that management implement and maintain procedures to ensure documented review and approval of employee timecards, payroll costs charged to federal programs and ensure compliance with federal requirements. Explanation of disagreement with audit finding: There is no disagr...

Recommendation: We recommend that management implement and maintain procedures to ensure documented review and approval of employee timecards, payroll costs charged to federal programs and ensure compliance with federal requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: During the transition to a new payroll system, documentation evidencing management’s review and approval of employee timecards was not retained. Nashville Safe Haven Family Shelter, Inc will work with their payroll service provider to ensure that payroll records, including evidence of timecard review and approval, are appropriately retained and accessible, including during any future system transitions. Name(s) of the contact person(s) responsible for corrective action: Jennifer Reason, COO Planned completion date for corrective action plan: 8/1/2026

View Audit 412620

Finding 1237674 (2025-003)

Material Weakness 2025

Contemporary Oriental Medicine Foundation

FL

Special Tests & Provisions Student Financial Aid Subrecipient Monitoring

Finding 2025-003: Late Refunds- Student Financial Assistance Cluster - Federal Direct Student Loans -ALN # 84.268 - Year Ended December 31, 2025 Criteria: The Department of Education requires that all refunds be made within 45 days of a student’s withdrawal (34 CFR 668.22, 685.306). Condition: Sikic...

Finding 2025-003: Late Refunds- Student Financial Assistance Cluster - Federal Direct Student Loans -ALN # 84.268 - Year Ended December 31, 2025 Criteria: The Department of Education requires that all refunds be made within 45 days of a student’s withdrawal (34 CFR 668.22, 685.306). Condition: Sikich tested four drop students in our sample and noted two late refunds. This finding is considered to be a material weakness and an instance of noncompliance. This finding was not a repeat finding. Recommendation: We recommend the College increase controls over monitoring drop students and paying refunds. Responsible Person: Dr. Jessica Fritz, Bridgette McGuire, Denise Land, DJ Kramer, Derrick Phillips Corrective Action Plan: DRCOM has implemented increased controls over the R2T4 process through increased and timely communication between various departments involved in the drop process and LOA’s. These departments are the Academic Dean, Registrar, Financial Aid, IT, and Student Accounts Implementation Date: 08/01/2026

View Audit 412608

Finding 1237673 (2025-002)

Material Weakness 2025

Contemporary Oriental Medicine Foundation

FL

Special Tests & Provisions Student Financial Aid Material Weakness

Finding 2025-002: Financial Responsibility - Student Financial Assistance Cluster - Federal Direct Student Loans - ALN # 84.268 - Year Ended December 31, 2025 Criteria: An accredited school that participates in Federal programs authorized by Title IV of the Higher Education Act of 1965 is required t...

Finding 2025-002: Financial Responsibility - Student Financial Assistance Cluster - Federal Direct Student Loans - ALN # 84.268 - Year Ended December 31, 2025 Criteria: An accredited school that participates in Federal programs authorized by Title IV of the Higher Education Act of 1965 is required to demonstrate minimum standards of financial responsibility set forth by the U.S. Department of Education (DOE). Condition: The College did not meet the minimum Composite Score set forth by the U.S. Department of Education for the year ended December 31, 2025. We consider this finding to be a material weakness and an instance of noncompliance. This finding is repeated and was reported in the prior year as Finding 2024-002. Recommendation: The College needs to monitor its financial responsibility ratios throughout the year. Responsible Person: Dorian G. Kramer, DJ Kramer, Jennifer Hogan Corrective Action Plan: The college continues to monitor its financial responsibility ratios through the aforementioned financial accountability plans. As well, DRCOM has continued to improve its financial soundness through 2026 through multiple approaches, including a professional third-party assessment and plan implementation for increasing admissions, restructuring of debt, donor recruitment, hiring of a new clinic manager to increase income in the student clinic, and exploring other revenue streams for the college Implementation Date: Overall plan has been in place since 08/2024, with a reassessment of all strategies at the beginning of each semester.

View Audit 412608

Finding 1237670 (2025-002)

Material Weakness 2025

Park Duvalle Community Health Center, INC

KY

Special Tests & Provisions Eligibility Material Weakness

CORRECTIVE ACTION PLAN September 25, 2026 U.S. Department of Health and Human Services Park DuValle Community Health Center, Inc. respectively submits the following corrective action plan for the yearended December 31, 2025. Name and address of independent public accounting firm: Blue & Co., LLC 265...

CORRECTIVE ACTION PLAN September 25, 2026 U.S. Department of Health and Human Services Park DuValle Community Health Center, Inc. respectively submits the following corrective action plan for the yearended December 31, 2025. Name and address of independent public accounting firm: Blue & Co., LLC 2650 Eastpoint Pkwy., Suite 300 Louisville, Kentucky 40223 Audit period: December 31, 2025. The findings from the schedule of findings and questioned costs for the year ended December 31, 2025, are discussed below. The findings are numbered consistently with the numbers assigned in the Schedule. FINDINGS - FINANCIAL STATEMENT AUDIT 2025-001 Condition: During our audit procedures, we noted that bank reconciliations were not performed as part of close procedures. The absence of bank reconciliations increases the risk that cash could be materially misstated. Action: Management will implement policies and procedures by December 31, 2026, to ensure proper reconciliation of bank accounts. FINDINGS- FEDERAL AWARD PROGRAM AUDITS 2025-002 Condition: Sliding fee scale: There were several instances noted where the incorrect sliding fee discount was given to patients based on their verified incomes and household sizes, as well as instances in which patients were not evaluated for sliding fee discounts based on patient income and family size. Action: Managementwill implement internal control procedures by December 31, 2026, to ensure that sliding fee discounts are properly applied and posted to patient accounts for eligible encounters and that patients are evaluated for eligibility for sliding fee discounts.

View Audit 412603

Finding 1237664 (2025-001)

Material Weakness 2025

Beacon, Inc.

IN

Internal Control / Segregation of Duties Material Weakness Reporting

2025 CORRECTIVE ACTION PLAN July 21, 2026 Beacon, Inc. respectfully submits the following Corrective Action Plan for the year ended December 31, 2025. Name and address of independent public accounting firm: Blue & Co., LLC 720 E Pete Rose Way, Suite 100 Cincinnati, OH 45202 Audit period: January 01,...

2025 CORRECTIVE ACTION PLAN July 21, 2026 Beacon, Inc. respectfully submits the following Corrective Action Plan for the year ended December 31, 2025. Name and address of independent public accounting firm: Blue & Co., LLC 720 E Pete Rose Way, Suite 100 Cincinnati, OH 45202 Audit period: January 01, 2025 - December 31, 2025 Beacon, Inc.’s response to the findings from the December 31, 2025 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Financial Statement Findings 2025-001 Finding: Preparation of Financial Statements Management’s response: Management concurs with the above finding and, accordingly, has engaged the auditors to assist with the preparation of the 2025 year-end external financial statements. Action planned: Engagement of the auditors to assist with the preparation of the 2025 year-end external financial statements. Management is currently reviewing the procedures and controls in place to address the preparation and review of external year-end financial statements and will revise and enhance as warranted. Implementation Date: Ongoing Responsible Person: Rev Forrest Gilmore, Executive Director

View Audit 412581

Finding 1237585 (2025-003)

Material Weakness 2025

Municipality of Barceloneta

PR

HUD Housing Programs Reporting Internal Control / Segregation of Duties

Management Response: The Municipality acknowledges the finding regarding the HUD REAC reporting requirements. To address this matter directly and strengthen compliance oversight, the Municipality contracted a specialized REAC consultant who has been actively assisting our team since last year. Throu...

Management Response: The Municipality acknowledges the finding regarding the HUD REAC reporting requirements. To address this matter directly and strengthen compliance oversight, the Municipality contracted a specialized REAC consultant who has been actively assisting our team since last year. Through this partnership, significant progress has been made, and municipal REAC reporting is now nearly up to date, despite unforeseen administrative delays caused by past government shutdowns and operational closures. Management remains fully dedicated to maintaining compliance with all federal housing program standards. With the specialist's ongoing technical assistance and established reporting timelines, the Municipality expects to have all outstanding REAC submissions fully updated and all future reports filed in a timely manner for calendar year 2026.

View Audit 412518

Finding 1237584 (2025-002)

Material Weakness 2025

Municipality of Barceloneta

PR

Procurement, Suspension & Debarment Subrecipient Monitoring Material Weakness

Management response: The Municipality acknowledges the finding regarding the late submission of the Single Audit reporting package to the Federal Audit Clearinghouse. This delay was the direct result of extraordinary and unforeseeable circumstances. Midway through the engagement, the lead auditor un...

Management response: The Municipality acknowledges the finding regarding the late submission of the Single Audit reporting package to the Federal Audit Clearinghouse. This delay was the direct result of extraordinary and unforeseeable circumstances. Midway through the engagement, the lead auditor unexpectedly passed away. This tragic event disrupted the audit process and necessitated the immediate termination and procurement process to engage a new independent public accounting firm to complete the Single Audit. Selecting, contracting, and onboarding the new audit firm alongside and re-evaluating financial documentation created a significant administrative and operational delay beyond the control of management. Municipal management remains fully committed to regulatory compliance and timely financial reporting. The engagement with the new audit firm is now fully operational, and the audit completion process is actively underway. Management has implemented internal monitoring controls and timeline tracking to ensure that all future Single Audit packages are completed and submitted to the Federal Audit Clearinghouse within the prescribed federal deadlines.

View Audit 412518

Finding 1237477 (2025-001)

Material Weakness 2025

Housing Authority of Lincoln County

OR

Special Tests & Provisions HUD Housing Programs Material Weakness

Housing Choice Voucher Program – Assistance listing No. 14.871 Recommendation: We recommend the Authority implements controls to ensure that required QC inspections are completed timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in ...

Housing Choice Voucher Program – Assistance listing No. 14.871 Recommendation: We recommend the Authority implements controls to ensure that required QC inspections are completed timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: HALC has begun the process of scheduling the QC inspections for the current fiscal year, and will be completing them prior to December 31, 2026. Name(s) of the contact person(s) responsible for corrective action: Robyn Cole, Deputy Director Planned completion date for corrective action plan: December 31, 2026.

View Audit 412428

Finding 1237474 (2025-001)

Material Weakness 2025

Housing Authority of the City of Bloomington, Il

IL

HUD Housing Programs Cash Management Material Weakness § 200.305

2025-001 – Cash Management and Period-of-Performance Corrective Action The Authority will monitor modernization activity against grant funding availability dates regularly. Additionally, the Authority will execute procedures requiring each Capital Fund grant funding request to be supported by immedi...

2025-001 – Cash Management and Period-of-Performance Corrective Action The Authority will monitor modernization activity against grant funding availability dates regularly. Additionally, the Authority will execute procedures requiring each Capital Fund grant funding request to be supported by immediate, documented, and eligible expenditures in accordance with HUD’s requirements. Jeremy Hayes, Executive Director has assumed the responsibility of executing this corrective action as of September 18, 2026

View Audit 412424

Finding 1236929 (2025-003)

Material Weakness 2025

Warrick County

IN

Internal Control / Segregation of Duties Material Weakness Period of Performance § 200.1 § 200.303

Finding Subject: 2025-003 Finding Subject: COVID-19 Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Debbie Bennett-Stearsman Contact Phone Number and Email Address: 812-319-9068 and dbennett-stearsman@warrickcounty.gov View of Responsib...

Finding Subject: 2025-003 Finding Subject: COVID-19 Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Debbie Bennett-Stearsman Contact Phone Number and Email Address: 812-319-9068 and dbennett-stearsman@warrickcounty.gov View of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: As explained and demonstrated by the County Administrator to the SBOA at the time of the audit, the online reporting system for the U.S. Treasury quarterly reports had malfunctioned. When the County Administrator attempted to enter the correct amounts, the report would be rejected. The only way to get the quarterly reports to be accepted was by adjusting the numbers, resulting in the issues pointed out by the SBOA. As the SBOA is aware, the reports were on a time-sensitive deadline and had to be submitted. The County will follow up with the U.S. Treasury in the event of future problems with the online reporting system. The County Administrator did follow up with the U.S. Treasury in 2025. No response was given. In 2026, the U.S. Treasury provided a webinar stating that if the municipality could not close out or lock awards due to unbalanced figures, then the municipality should leave the project “unlocked.” There was no guidance on reopening previous quarterly reports to correct any mistakes. Therefore, the County Administrator could not correct previous reports. Anticipated Completion Date: September 30, 2026.

View Audit 412381

Corrective Action Plans

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