Corrective Action Plans

Finding 1223065 (2025-001)

Material Weakness 2025

Lorna Doone Associates, LLC

UT

Questioned Costs HUD Housing Programs Matching / Level of Effort / Earmarking

a. Management is negotiating a solution with the State of Utah and HUD for a refund of the payment.

View Audit 406642

Finding 1223032 (2025-001)

Material Weakness 2025

City of Texarkana, Texas

TX

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring

City of Texarkana, Texas Corrective Action Plan Contact Name: Kristin Peeples Contact Phone Number: 903.798.3975 Audit Firm: Forvis Mazars, LLP Audit Period: September 30, 2025 Finding #2025-001: Management is responsible for ensuring compliance with reporting requirements for all federal programs. ...

City of Texarkana, Texas Corrective Action Plan Contact Name: Kristin Peeples Contact Phone Number: 903.798.3975 Audit Firm: Forvis Mazars, LLP Audit Period: September 30, 2025 Finding #2025-001: Management is responsible for ensuring compliance with reporting requirements for all federal programs. Under the requirements of the Federal Funding Accountability and Transparency Act (Pub. L. No. 109- 82), as amended by Section 6202 of Pub. L. No. 110-252, hereafter referred to as the “Transparency Act” that are codified in 2 CFR Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System in SAM.gov. The City did not report the subaward information for the fiscal year ended September 30, 2025. Response: Management concurs with the finding and recommendation. Management will work to ensure proper policies and procedures are established and followed to ensure future reporting under the appropriate guidance by September 30, 2026.

View Audit 406620

Finding 1223030 (2025-001)

Material Weakness 2025

West Valley Housing Authority

OR

HUD Housing Programs Internal Control / Segregation of Duties Questioned Costs

CORRECTIVE ACTION PLAN -For FY 2025 Audit Finding FINDING: 2025-001-ALN 14.871 & 14.879: U.S. Department of Housing and Urban Development’s (HUD’s) Section 8 Housing Choice Voucher (HCV) Program & Housing Quality Standards Inspection/HQS Enforcement CRITERIA: 24 CFR 982.405 & 983.103 require units l...

CORRECTIVE ACTION PLAN -For FY 2025 Audit Finding FINDING: 2025-001-ALN 14.871 & 14.879: U.S. Department of Housing and Urban Development’s (HUD’s) Section 8 Housing Choice Voucher (HCV) Program & Housing Quality Standards Inspection/HQS Enforcement CRITERIA: 24 CFR 982.405 & 983.103 require units leased, under the HCV Program, to be inspected at least biennially to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. CONDITION: During the audit, three (3) failed HQS inspections, with life threatening issues as defined by the WVHA’s Administrative Plan, was found that did not receive a pass in conformance with the Criteria noted above and no HAP abatement process was enforced. Additionally, two (2) HCV units were found to have not been inspected at least biennially. PLAN FOR CORRECTION: Inspection Protocols- With the limitation of time imposed by the 24-hour remedy period, staff were calling and/or emailing the landlords as soon as they noted a Life, Health & Safety deficiency. Inspection staff have been informed that all Life Health and Safety deficiencies will immediately trigger a letter to the landlord (with a copy to the HCV caseworker) stating that Housing Assistance Payments will be placed in abatement and the HCV caseworkers will perform such abatement action as soon as the 24-hour period has elapsed (unless informed by the inspector that the property has subsequently corrected the deficiencies). Documentation- Physical inspection records will be provided to each HCV caseworker and be added to the tenant household’s HCV file within 24 hours of the inspection. HCV caseworkers are required to ensure all inspection documentation is properly located within each HCV file and such documentation is in accordance with the program’s rules and regulations. CONTACTS FOR PLAN: Cheryl Slagle – Housing Programs Manager Ph. (503) 623-8387 Ext. 328 cslagle@wvpha.org Christian Edelblute - Executive Director Ph. (503) 623-8387 Ext. 314 cedelblute@wvpha.org

View Audit 406612

Finding 1223010 (2025-004)

Material Weakness 2025

Lee's Summit Housing Authority

MO

Questioned Costs HUD Housing Programs Internal Control / Segregation of Duties

Management has strengthened its recordkeeping practices to ensure that all revenues are fully supported by appropriate source documentation and are readily available for audit, monitoring, and financial reporting purposes. The Finance Director has conducted a review of current revenue documentation ...

Management has strengthened its recordkeeping practices to ensure that all revenues are fully supported by appropriate source documentation and are readily available for audit, monitoring, and financial reporting purposes. The Finance Director has conducted a review of current revenue documentation procedures to identify any gaps in record retention and establish standardized filing requirements for all revenue sources, including tenant rent, HUD operating subsidies, Capital Fund reimbursements, Housing Assistance Payments (HAP), administrative fees, miscellaneous income, grant revenues, and other receipts. Where documentation is incomplete, management has made reasonable efforts to obtain or recreate supporting records from available internal and external sources.

View Audit 406556

Finding 1223009 (2025-003)

Material Weakness 2025

Lee's Summit Housing Authority

MO

Internal Control / Segregation of Duties Questioned Costs

A review of financials determined that due to fraud bank accounts were closed and not correctly documented in the financials leading to a misstatement of assets. All accounts have been reviewed and adjusting entries made to correct prior deficienceis. LSHA has strengthened internal controls to preve...

A review of financials determined that due to fraud bank accounts were closed and not correctly documented in the financials leading to a misstatement of assets. All accounts have been reviewed and adjusting entries made to correct prior deficienceis. LSHA has strengthened internal controls to prevent future discrepencies and has implemented a formal cash reconciliation procedure requiring all bank accounts to be reconciled following the end of each month. Each reconiciliation includes verification that the adjusted bank balance agrees to the general ledger cash balance, documentation of all outstanding reconciling items, and timely resolution of any differences identified.

View Audit 406556

Finding 1223007 (2025-002)

Material Weakness 2025

Bltheville School District No. 5

AR

Allowable Costs / Cost Principles Questioned Costs Procurement, Suspension & Debarment

1. Title I Expenditure Documentation • All Title I payroll and non-payroll expenditures must be supported by complete documentation, including approved purchase orders, invoices, time-and-effort records, or equivalent, before any payment is processed. The Title I program coordinator will sign off on...

1. Title I Expenditure Documentation • All Title I payroll and non-payroll expenditures must be supported by complete documentation, including approved purchase orders, invoices, time-and-effort records, or equivalent, before any payment is processed. The Title I program coordinator will sign off on each transaction before submission to the Finance Director. • The Finance Director will conduct a monthly review of all Title I expenditures to verify allowability and documentation completeness under 2 CFR Part 200. 2. Stipend and Additional Compensation Approval • Any stipend, bonus, or additional compensation charged to a federal program must be approved by board resolution and reviewed for allowability under the applicable federal award before payment by the Federal Programs Coordinator. 3. Overpayment Recovery and Prevention • Payroll staff will verify active employment status for all Title I-funded employees at the start of each pay period. Any separation, leave of absence, or status change will be immediately reported to the payroll processor to prevent overpayments. 4. Federal Award Compliance Training • All staff involved in administering Title I and other federal programs will receive annual training on 2 CFR Part 200 requirements, including allowable costs, documentation standards, and approval procedures, before the start of each grant year. Attendance will be documented.

View Audit 406536

Finding 1222998 (2025-001)

Material Weakness 2025

Housing Authority of the City of Yakima

WA

Special Tests & Provisions Questioned Costs Subrecipient Monitoring

Recommendation: Management should strengthen its tenant file review and monitoring procedures to ensure that reasonable rent determinations and utility allowance calculations are completed, documented, and reviewed in accordance with the Housing Authority’s policies and applicable program requiremen...

Recommendation: Management should strengthen its tenant file review and monitoring procedures to ensure that reasonable rent determinations and utility allowance calculations are completed, documented, and reviewed in accordance with the Housing Authority’s policies and applicable program requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to the finding: The Authority will address the identified deficiencies and prevent recurrence by strengthening file review procedures, enhancing staff training, and improving internal controls. A standardized quality control process will be implemented to ensure required tenant file elements are accurate, complete, and properly reviewed prior to approval, along with periodic monitoring to identify and correct errors in a timely manner. Staff will receive targeted and refresher training to reinforce key requirements, calculations, and documentation standards. Additionally, the Authority will evaluate opportunities to improve system controls to reduce the likelihood of errors or missed steps. Name(s) of the contact person(s) responsible for corrective action: Lowel Krueger, Executive Director. Planned completion date for corrective action plan: December 31, 2025.

View Audit 406527

Finding 1222993 (2025-001)

Material Weakness 2025

St. James Plaza, Inc.

SC

Questioned Costs Subrecipient Monitoring

Comments on the Finding and Each Recommendation All the required monthly reserve for replacements deposits were not made during the year ended September 30, 2025. Management should transfer $8,474 into the reserve for replacements account from the operating cash account as soon as possible. Action(s...

Comments on the Finding and Each Recommendation All the required monthly reserve for replacements deposits were not made during the year ended September 30, 2025. Management should transfer $8,474 into the reserve for replacements account from the operating cash account as soon as possible. Action(s) taken or planned on the finding Management concurs with the finding and agrees with the recommendation and will transfer $8,474 to the reserve for replacements account from the operating cash account as soon as funds are available.

View Audit 406515

Finding 1222980 (2025-007)

Material Weakness 2025

Cherokee Boys Club, Inc.

NC

Special Tests & Provisions Questioned Costs Subrecipient Monitoring

Finding 2025-007: Significant Deficiency - Special Tests and Provisions Condition: The Club notified the contractor of the wage rate requirements but did not obtain or review certified payroll records for each week in which work was performed under the contract. Corrective Action: The Club Finance D...

Finding 2025-007: Significant Deficiency - Special Tests and Provisions Condition: The Club notified the contractor of the wage rate requirements but did not obtain or review certified payroll records for each week in which work was performed under the contract. Corrective Action: The Club Finance Director will work with the current contractor and set up a schedule for payroll review based on their payroll schdule. Person Responsible For Corrective Action: Rhonica Via, Finance Director Anticipated Completion Date: July 31, 2026

View Audit 406502

Finding 1222975 (2025-004)

Material Weakness 2025

Cherokee Boys Club, Inc.

NC

Special Tests & Provisions Questioned Costs Significant Deficiency

Finding 2025-004: Significant Deficiency - Special Tests and Provisions Repeat of Prior Year Finding 2024-005 Condition: While documentation exists that a background investigation was completed, no documentation was maintained that the results of the background investigation were compared to the emp...

Finding 2025-004: Significant Deficiency - Special Tests and Provisions Repeat of Prior Year Finding 2024-005 Condition: While documentation exists that a background investigation was completed, no documentation was maintained that the results of the background investigation were compared to the employment application or that a suitability determination was conducted by an appropriate adjudicating official who herself/himself was the subject of a favorable background investigation. Corrective Action: The Club and Cherokee Central Schools (CCS) agree with this finding and CCS notes that its Employment Suitability Investigations policy was updated and formally adopted on July 22, 2019. The audit included a sample of employee files from prior years, before the policy was implemented and before consistent personnel changes were made. Since the policy's adoption, appropriate procedures have been put in place to ensure background investigations and employment suitability assessments are conducted and properly documented. CCS will continue to monitor compliance with the policy and ensure that documentation is consistently maintained in employee personnel files moving forward. Current updates to be enacted immediately include documentation that the Superintendent has reviewed the files. Person Responsible For Corrective Action: Heather Driver, Interim CCS HR Director Anticipated Completion Date: June 30, 2026

View Audit 406502

Finding 1222969 (2025-003)

Material Weakness 2025

Sicangu Oyate Ho, INC

SD

Questioned Costs Allowable Costs / Cost Principles § 200.302 § 200.430

Management Response: Management agrees with the audit finding regarding internal controls over payroll. To strengthen payroll controls and ensure the accuracy and integrity of payroll processing, the organization has implemented and will continue to enhance the following procedures: Payroll is proce...

Management Response: Management agrees with the audit finding regarding internal controls over payroll. To strengthen payroll controls and ensure the accuracy and integrity of payroll processing, the organization has implemented and will continue to enhance the following procedures: Payroll is processed based on approved employee contracts, work agreements and authorized timesheets. Supervisors are responsible for reviewing and approving employee timesheets before payroll is processed. We have a new payroll manager who is ensuring that all required documentation is on file and works closely with the HR Department. We acknowledge that HR Files were incomplete due to previous staff disassembling files for HR Audits and not replacing documents to original folders. Anticipated Completion Date: In process for FY2026, we have a new payroll manager and HR Director that started in May of 2025 and both are ensuring all proper documentation is in place. Management anticipates full implementation by June 30, 2026. Responsible Party: Business Manager, Payroll Manager, Accounting Tech & HR Director.

View Audit 406467

Finding 1222938 (2025-006)

Material Weakness 2025

Help Usa, Inc. and Affiliates

NY

Questioned Costs Reporting Significant Deficiency

Management has established a documentation tracking system to ensure that all stages of the monthly reporting process including preparation, review, approval, and submission are properly documented and retained.

View Audit 406443

Finding 1222936 (2025-005)

Material Weakness 2025

Help Usa, Inc. and Affiliates

NY

Questioned Costs Eligibility Significant Deficiency

Management has implemented a comprehensive continuing education program for employees who work on the SSVF program. Monthly internal audits are conducted by the Program leadership team to monitor compliance with funder guidelines.

View Audit 406443

Finding 1222892 (2025-002)

Material Weakness 2025

The Education Alliance-Business and Community for Public Schools, Inc.

WV

Material Weakness Reporting Internal Control / Segregation of Duties § 200.512

Management will coordinate with external auditors to ensure timely completion of the audit and to ensure compliance with 2 CFR 200.512 requirements.

View Audit 406418

Finding 1222850 (2025-002)

Material Weakness 2025

Promise Healthcare Nfp

IL

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring § 200.317 § 200.318 § 200.319 § 200.320

Procurement – Assistance Listing No. 93.224/93.527 Recommendation: We recommend the Organization consistently follow its established policies and procedures related to the maintaining of necessary documentation to support the method of procurement utilized. The Organization may also consider qualify...

Procurement – Assistance Listing No. 93.224/93.527 Recommendation: We recommend the Organization consistently follow its established policies and procedures related to the maintaining of necessary documentation to support the method of procurement utilized. The Organization may also consider qualifying multiple vendors for particular goods/service and then utilizing an approved vendors list. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: • Review Contract and procurement policies and procedures. • Compare current procurement process and training to the policies and identify areas for correction and improvement. • Update Policies and procedures as needed. • Implement procedures to review vendors on a periodic basis. • Implement procedures and assign responsibility for checking off that procurement documentation exists and is in the vendor folder or designated area. • Retrain staff involved in procurement on updated procedures. • Monitor process and adjust as needed. Name of the contact person responsible for corrective action: Keith Flores, CFO Planned completion date for corrective action plan: January 2027

View Audit 406409

Finding 1222848 (2025-001)

Material Weakness 2025

Promise Healthcare Nfp

IL

Questioned Costs Reporting Internal Control / Segregation of Duties § 200.303

Reporting – Assistance Listing No. 93.224/93.527 Recommendation: We recommend the Organization perform a final review of amounts entered within the UDS report, as compared to the supporting schedules, prior to submission. Explanation of disagreement with audit finding: There is no disagreement with ...

Reporting – Assistance Listing No. 93.224/93.527 Recommendation: We recommend the Organization perform a final review of amounts entered within the UDS report, as compared to the supporting schedules, prior to submission. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: • Update UDS procedure to pull detail reports on all numbers reported in the UDS. • Add to the UDS procedure a review of detail reports to tie them to UDS report • Add a sign off to UDS report as part of final review that detail reports were pulled and verified. Name of the contact person responsible for corrective action: Keith Flores, CFO Planned completion date for corrective action plan: July 2026

View Audit 406409

Finding 1222844 (2025-002)

Material Weakness 2025

Municipality of Cidra

PR

Questioned Costs Reporting Significant Deficiency § 200.512

We will improve our internal control procedures related to record keeping and adjustments in order to ensure compliance with the March 31 federal requirement. Implementation Date: During the 2026-2027 fiscal year. Responsible Person: Mrs. Yadira Pereira Nieves Finance Director

View Audit 406403

Finding 1222793 (2025-004)

Material Weakness 2025

Cook County, Illinios

IL

Questioned Costs Subrecipient Monitoring Cash Management § 200.208 § 200.329

Subject: 2025 Single Audit Finding 2025-004 2025-004 Management Response: Management acknowledges the finding. DEMRS did not submit the required quarterly financial and performance reports to the Illinois Emergency Management Agency (IEMA) for the Homeland Security Grant Program during the fiscal ye...

Subject: 2025 Single Audit Finding 2025-004 2025-004 Management Response: Management acknowledges the finding. DEMRS did not submit the required quarterly financial and performance reports to the Illinois Emergency Management Agency (IEMA) for the Homeland Security Grant Program during the fiscal year. Root Cause Analysis: Over multiple years, DEMRS experienced significant turnover in key finance and grant management positions, which created gaps in continuity and delayed the department's transition to IEMA's Amplifund reporting system. As prior management departed and new staff were onboarded, the department faced operational challenges that affected the consistency of its grant reporting processes. Due to Amplifund's requirement that reimbursement requests be submitted sequentially before performance reports can be filed, the delays in prior period submissions prevented DEMRS from accessing and submitting the quarterly reports. Statewide pauses in FEMA and IEMA grant processing further contributed to the backlog. Corrective Action: DEMRS will complete and submit all outstanding reimbursement requests and performance reports for UASI 2022, UASI 2023, and UASI 2024 to bring the County into full compliance with grantor requirements. Preventive Action: DEMRS will implement a grants compliance calendar that tracks all reporting deadlines. Future reports will be prepared by the Manager of Grants & Contracts and reviewed and approved by the Associate Director of Finance, with documented evidence of review. Responsible Party: Damian Albert, Associate Director of Finance, damian.albert@cookcountyil.gov. 312.603.8177 Tina Bhaga, Manager, Grants & Contracts, tina.bhaga@cookcountyil.gov, 312.603.8543 Planned Completion Date: January 1, 2027

View Audit 406385

Finding 1222792 (2025-003)

Material Weakness 2025

Cook County, Illinios

IL

Allowable Costs / Cost Principles Cash Management Questioned Costs § 200.302 § 200.307 § 200.472

Memo: Cause and Corrective Action Plan for Finding 2025-003 This correspondence serves as Cook County Health (CCH) and Cook County Department of Public Health (CCDPH) response to Finding 2025-003. During the FY2025 Single Audit, one audit finding was identified by Washington, Pittman & McKeever, LLC...

Memo: Cause and Corrective Action Plan for Finding 2025-003 This correspondence serves as Cook County Health (CCH) and Cook County Department of Public Health (CCDPH) response to Finding 2025-003. During the FY2025 Single Audit, one audit finding was identified by Washington, Pittman & McKeever, LLC. The root cause and corrective action plan is identified below. Condition During the current audit period, the Cook County Department of Public Health (DPH) did not comply with federal regulations regarding the use and reporting of program income as it relates to funds awarded through the RWHAP Root Cause Analysis The HIV grants transitioned to CCH from an external organization in July 2025. Award amounts were granted in multiple phases, requiring four budget revisions, with the final revision approved in December 2025. The contractual period covered March 2025 through December 2025. During the transition period, CCH lacked formal operational procedures to identify, record, and track program income. Several operational and administrative challenges contributed to this issue, including: • No written internal procedures were in place to define or track program income requirements. • No formal transition teams were established to identify core grant obligations, resulting in unclear interpretation of sponsor requirements. • CCH had not yet identified the appropriate internal systems or interdepartmental collaborations necessary to retrieve and reconcile program income data. • Organizational priorities during the transition focused on maintaining existing deliverables, including vouchering, budget compliance, hiring, and onboarding of direct and administrative staff. • Staffing Shortages, CCH onboarded personnel quickly as contractual employees, direct staff transitioned onboard as CCH employees in phases upon execution of grant contracts. Corrective Action Plan CCH Director of Grants Accounting is implementing formal written processes and procedures to ensure compliance with Federal Uniform Guidance requirements related to program income. The corrective action plan includes: • Developing standardized written procedures that clearly define program income requirements and tracking responsibilities. • Establishing shared roles and responsibilities across departments to support consistent data collection, reconciliation, and reporting. • Identifying the specific data elements required to accurately record and monitor program income. • Formalizing interdepartmental collaboration processes necessary to retrieve and validate program income information. • Defining the systems and reporting tools that will be used to track and maintain program income records. • Providing staff training on program income requirements, documentation standards, and compliance expectations. These actions will strengthen internal controls and ensure timely, accurate identification and tracking of program income moving forward, official approval/implementation is expected December 2026

View Audit 406385

Finding 1222788 (2025-001)

Material Weakness 2025

Community Action Agency of New Haven, Inc.

CT

Reporting Questioned Costs Material Weakness

Material Weakness in Internal Control Over Financial Reporting The Agency’s year-end financial reporting controls did not detect and correct a material misstatement related to client assistance pass-through funding prior to the commencement of audit procedures. The misstatement related, in part, to ...

Material Weakness in Internal Control Over Financial Reporting The Agency’s year-end financial reporting controls did not detect and correct a material misstatement related to client assistance pass-through funding prior to the commencement of audit procedures. The misstatement related, in part, to the year-end confirmation and reconciliation process with State pass-through agencies. As a result, a material audit adjustment was required to properly state the financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP). Management concurs with the finding. CAANH terminated its fiduciary services contract with NOI in 2025 and engaged CohnReznick with a start date of October 1, 2025, as its new fiduciary services provider. Management will continue to ensure that all year-end financial reporting, account reconciliations, and confirmation processes are completed in a timely manner. In addition, management will verify that all financial transactions are accurately recorded and reviewed prior to the commencement of the annual audit to support complete, accurate, and timely financial reporting. Amos Smith, President & CEO Will be in operation for all future audit periods.

View Audit 406360

Finding 1222755 (2025-003)

Material Weakness 2025

The Order of Fishermen Ministry Head Start Program, Inc.

MI

Questioned Costs Subrecipient Monitoring Material Weakness § 200.501 § 200.512 § 200.514

Condition – The data collection form was not submitted within the required time as required by 2 CFR 200.512 for the year ended June 30, 2025. Planned Corrective Action – The Agency will take all reasonable measures to work with the new auditors to complete the audit process and submit the data coll...

Condition – The data collection form was not submitted within the required time as required by 2 CFR 200.512 for the year ended June 30, 2025. Planned Corrective Action – The Agency will take all reasonable measures to work with the new auditors to complete the audit process and submit the data collection report within the required time period. Anticipated Date of Correction – The 2026 data collection form for the year ended June 30, 2026, will be issued to GSA within the required deadline of the earlier of thirty days after issuance of the 2026 audit or prior to March 31, 2027. Point of Contact: James Williams, Fiscal Officer/Program Director

View Audit 406338

Finding 1222748 (2025-002)

Material Weakness 2025

Mountain Community Action Program, Inc.

VA

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties

1. Proposed Corrective Action: Our agency will migrate all time sheets to digital, which will be input and tracked by the employee and submitted each payroll. That timesheet will then be reviewed and approved by the Director of Operations before payroll is disbursed. Digital timesheets will be avail...

1. Proposed Corrective Action: Our agency will migrate all time sheets to digital, which will be input and tracked by the employee and submitted each payroll. That timesheet will then be reviewed and approved by the Director of Operations before payroll is disbursed. Digital timesheets will be available on demand going forward. 2. Timeline for Implementation: This process has already been completed.

View Audit 406332

Finding 1222746 (2025-001)

Material Weakness 2025

Lynn Street Manor Apartments

MI

Internal Control / Segregation of Duties Questioned Costs Procurement, Suspension & Debarment

Tyler Luce, Executive Vice President & CFO, respectfully submits the following corrective action plan for the year ended September 30, 2025. Name and address of independent public accounting firm: Maner Costerisan, P.C. 2425 E. Grand River Ave, Ste 1 Lansing, MI 48912 Audit period: October 1, 2024 –...

Tyler Luce, Executive Vice President & CFO, respectfully submits the following corrective action plan for the year ended September 30, 2025. Name and address of independent public accounting firm: Maner Costerisan, P.C. 2425 E. Grand River Ave, Ste 1 Lansing, MI 48912 Audit period: October 1, 2024 – September 30, 2025 The findings from the September 30, 2025 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Finding 2025-001 Recommendation: The entity should design and implement stronger internal controls over project funds, including enhanced segregation of duties, documented procurement procedures, conflict-of-interest monitoring, and periodic independent review of project expenditures to ensure compliance with Uniform Guidance. Management Comments: We agree with the facts and circumstances of this finding. Management has taken corrective action in response to this finding. The employees involved are no longer employed in connection with the project, and the matter was reported to the HUD Office of Inspector General. Management has reviewed and strengthened the project's controls over conflict-of-interest monitoring and enforcement of existing time-clock policies. In addition, we have and will continue to perform independent reviews of project expenditures to ensure compliance with Uniform Guidance.

View Audit 406329

Finding 1222688 (2025-001)

Material Weakness 2025

School's Out Washington

WA

Allowable Costs / Cost Principles Questioned Costs

Contact Person(s): Matt Fadich Explanation and specific reasons for disagreement with the audit finding or that corrective action is not required (if applicable): Not applicable Corrective action planned: Task: Reviewed all nonpayroll transactions charged to federal programs and implemented coding a...

Contact Person(s): Matt Fadich Explanation and specific reasons for disagreement with the audit finding or that corrective action is not required (if applicable): Not applicable Corrective action planned: Task: Reviewed all nonpayroll transactions charged to federal programs and implemented coding and documentation corrections for 2026. Anticipated completion date: Done Task: Updated procedures addressing the documentation and allowability standards for nonpayroll expenditures directly charged to federal grant programs. Anticipated completion date: Done Task: Train staff with purchasing and coding authority on updated procedures, including documentation requirements and the distinction between allowable program charges and costs that may not be directly charged to federal grants. Anticipated completion date: June 30, 2026 Task: Establish a quarterly review process to identify and address potentially questionable nonpayroll transactions charged to federal programs on an ongoing basis. Anticipated completion date: June 30, 2026 School’s Out Washington considers the above steps sufficient and adequate to close the gaps in the coding of transactions that may have permitted unallowable costs to post to grants for YE2025. These steps will remedy the lapse in effectiveness experienced by School’s Out Washington’s internal controls over allowable costs.

View Audit 406271

Finding 1222677 (2025-001)

Material Weakness 2025

Gti Energy and Subsidiaries

IL

Questioned Costs Subrecipient Monitoring Cash Management § 200.305

Condition: Controls in place were not sufficient to ensure subrecipients were paid consistently within 30 days of a request for reimbursement. Planned Corrective Action: GTI management will develop and implement a formal process to track and report subrecipient invoices that have been received but n...

Condition: Controls in place were not sufficient to ensure subrecipients were paid consistently within 30 days of a request for reimbursement. Planned Corrective Action: GTI management will develop and implement a formal process to track and report subrecipient invoices that have been received but not yet paid. This includes: • Standardized Weekly Report: A report generated and reviewed weekly by Purchasing and Accounts Payable to identify, prioritize, and resolve outstanding actions for timely payment (Control Owners: AP Manager & Purchasing Manager; Implementation: September 30, 2026) • Weekly Invoice Review: The AP Specialist responsible for subrecipient invoices will review weekly to ensure invoices are prioritized and processed, with delays or exceptions escalated promptly to the AP Manager (Frequency: Weekly; Implementation: September 30, 2026) • Periodic Compliance Monitoring: Management will perform ongoing reviews of subrecipient invoice payment activity to monitor compliance with the 30-day payment requirement and adherence to internal policies (Control Owners: AP Manager & Program Revenue Operations; Frequency: Monthly with quarterly oversight; Implementation: Ongoing, formalized by September 30, 2026) Contact person responsible for corrective action: Naté Hoover, Program Revenue Operations Anticipated Completion Date: 9/30/2026

View Audit 406252

Corrective Action Plans

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