Corrective Action Plans

Finding 1177955 (2024-003)

Material Weakness 2024

Western Montana Mental Health Center & Affiliate

MT

Questioned Costs Reporting Significant Deficiency

WMMHC will implement additional review procedures for grant expenditures to ensure timely filing and compliance with federal requirements.

View Audit 391372

Finding 1177916 (2024-003)

Material Weakness 2024

Special Olympics Michigan, Inc.

MI

Questioned Costs Reporting Internal Control / Segregation of Duties § 200.512 § 200.520

2024-003 Finding - In accordance with 2 CFR § 200.512(a), the audit must be completed and the reporting package, which includes the Data Collection Form (SF-SAC), must be submitted to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the auditor's report(s...

2024-003 Finding - In accordance with 2 CFR § 200.512(a), the audit must be completed and the reporting package, which includes the Data Collection Form (SF-SAC), must be submitted to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Recommendation - The Organization should review internal controls and implement necessary procedures to ensure that accounting processes are completed timely so the audit can be completed within the parameters of the due date. Action to be taken – Additional staffing has been added and long with ensuring that bank reconciliations are completed by the 10th day after the month ends in order to ensure audit field work is completed in a timely manner. Responsible person – Tony Postma, Interim Chief Financial Officer

View Audit 391262

Finding 1177813 (2024-005)

Material Weakness 2024

Rocky Mountain Innovation Initiative d/b/a Innosphere Ventures

CO

Allowable Costs / Cost Principles Questioned Costs § 200.430

Management will implement procedures to ensure payroll costs charged to federal awards are supported by after-the-fact documentation of actual time worked, in compliance with 2 CFR §200.430(i). Employees whose time is allocated to multiple programs will be required to complete time and effort report...

Management will implement procedures to ensure payroll costs charged to federal awards are supported by after-the-fact documentation of actual time worked, in compliance with 2 CFR §200.430(i). Employees whose time is allocated to multiple programs will be required to complete time and effort reporting. Payroll processing will include documented review and approval by separate individuals to strengthen internal controls and ensure accurate allocation of personnel costs.

View Audit 391159

Finding 1177801 (2024-002)

Material Weakness 2024

Rocky Mountain Innovation Initiative d/b/a Innosphere Ventures

CO

Questioned Costs Reporting § 200.512

Management will implement a formal compliance calendar to track audit milestones, including preparation, review, and submission of the Data Collection Form and reporting package. Management will engage auditors earlier in the audit cycle and assign responsibility for monitoring Federal Audit Clearin...

Management will implement a formal compliance calendar to track audit milestones, including preparation, review, and submission of the Data Collection Form and reporting package. Management will engage auditors earlier in the audit cycle and assign responsibility for monitoring Federal Audit Clearinghouse deadlines. Grant administrators will be notified in advance if a program-specific audit is required to avoid delays.

View Audit 391159

Finding 1177737 (2024-003)

Material Weakness 2024

Refugee Support Services of the Carolinas, Inc.

NC

Questioned Costs Cash Management

Management Response: We acknowledge that some 1571 reports were submitted after the required deadline due to internal staffing transitions and competing reporting priorities. Planned Corrective Action: Management has implemented a compliance calendar with automated reminders and a secondary review p...

Management Response: We acknowledge that some 1571 reports were submitted after the required deadline due to internal staffing transitions and competing reporting priorities. Planned Corrective Action: Management has implemented a compliance calendar with automated reminders and a secondary review process to ensure timely submission of all DSS-1571 forms. Cross-training has been completed to ensure adequate coverage during staff absences. In addition, a formal procedure is now in place to request extensions when a reimbursement cannot be submitted by the 10th of the month. Name of Contact Person: Anna Eaton, Executive Director

View Audit 391134

Finding 1177736 (2024-002)

Material Weakness 2024

Refugee Support Services of the Carolinas, Inc.

NC

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

Management Response: Management acknowledges that certain expense and salary allocations were not fully aligned with the approved grant budgets, primarily due to staffing transitions and evolving program priorities. These changes temporarily impacted the consistency of allocation methods and review ...

Management Response: Management acknowledges that certain expense and salary allocations were not fully aligned with the approved grant budgets, primarily due to staffing transitions and evolving program priorities. These changes temporarily impacted the consistency of allocation methods and review processes. methods and review processes. Planned Corrective Action: Management has implemented monthly reconciliations between expense allocations and the approved budgets to ensure ongoing accuracy and compliance. An ORR tracking sheet is now used to verify expenditure allocations against current budgeted amounts prior to each reimbursement submission, ensuring that all costs are allowable, properly supported, and aligned with approved grant budgets. Name of Contact Person: Anna Eaton, Executive Director

View Audit 391134

Finding 1177682 (2024-015)

Material Weakness 2024

Southeast New Mexico College

NM

Questioned Costs Student Financial Aid Reporting § 200.512

Recommendation The College should continue to work with the accounting department and accounting systems to assist its auditor to catch up its financial reporting and records to allow for the completion of future audits. Corrective Action Unfortunately, due to the untimely completion and release of ...

Recommendation The College should continue to work with the accounting department and accounting systems to assist its auditor to catch up its financial reporting and records to allow for the completion of future audits. Corrective Action Unfortunately, due to the untimely completion and release of the June 30, 2023 audit report (released on August 8, 2025 - over two years after the end of the June 30, 2023 fiscal year audit), the College did not have the opportunity to review and begin a timely process of addressing a majority of the audit findings until well after the end of the audit period. While the College is committed to corrective action, the delayed delivery of the June 30, 2023 audit limited the ability to implement corrective measures earlier. The College is working proactively to ensure that these issues are resolved going forward. It is important to note that Southeast New Mexico College was a newly established independent community college, having formally separated from New Mexico State University (NMSU) as of April 2022. During this transition period, many administrative processes, including federal grant compliance procedures, were in the process of being developed, transitioned, and implemented independently from NMSU systems. As a result, certain policies, procedures, and documentation processes were not yet fully established or operational at the time of the audit. To ensure timely future submissions, the following corrective actions have been implemented. Revised Timeline and Calendar Controls: • A compliance calendar has been developed and integrated into the Business Office workflow to monitor federal reporting deadlines, including the DCF due date. This calendar includes reminder notifications at 90, 60 and 30 days before the March deadline. Internal Review Process: • A designated compliance officer or fiscal services staff member has been assigned responsibility for tracking the DCF submission process and coordinating with the external auditors to ensure timely receipt of the final audit. Audit Planning Coordination: • Annual audit planning meetings now include a discussion of reporting deadlines, and the contract with the external audit firm will include a clause requiring delivery of the final audit in a timeframe that supports compliance with federal submission timelines. Training and Awareness: • Relevant staff will have completed training in Uniform Guidance reporting requirements, including DCF submission procedures and deadlines to ensure full understanding of the importance of timely compliance. Due of Completion: August 31, 2025 Responsible Party(ies) Vice President for Business and Finance (or appropriate official), Dean of Business and Finance, Director of Finance, Accounts Receivable Coordinator, Business Office Manager

View Audit 391086

Finding 1177674 (2024-012)

Material Weakness 2024

Southeast New Mexico College

NM

Allowable Costs / Cost Principles Questioned Costs § 200.303 § 200.430

Recommendation We recommend the College develop and implement adequate policies and procedures to ensure charging of expenses for allowability are based off approved amounts. Corrective Action Unfortunately, due to the untimely completion and release of the June 30, 2023 audit report (released on Au...

Recommendation We recommend the College develop and implement adequate policies and procedures to ensure charging of expenses for allowability are based off approved amounts. Corrective Action Unfortunately, due to the untimely completion and release of the June 30, 2023 audit report (released on August 8, 2025 - over two years after the end of the June 30, 2023 fiscal year audit), the College did not have the opportunity to review and begin a timely process of addressing a majority of the audit findings until well after the end of the audit period. While the College is committed to corrective action, the delayed delivery of the June 30, 2023 audit limited the ability to implement corrective measures earlier. The College is working proactively to ensure that these issues are resolved going forward. It is important to note that Southeast New Mexico College was a newly established independent community college, having formally separated from New Mexico State University (NMSU) as of April 2022. During this transition period, many administrative processes, including federal grant compliance procedures, were in the process of being developed, transitioned, and implemented independently from NMSU systems. As a result, certain policies, procedures, and documentation processes were not yet fully established or operational at the time of the audit. Corrective Action Taken / Planned: Policy and Procedure Development The institution will revise or develop written policies and procedures to ensure compliance with 2 CFR §200.430. The revised procedures will include: • Detailed requirements for supporting documentation for payroll costs. • Clear guidance on time and effort reporting. • Procedures for periodic payroll reconciliation between payroll records and grant charges. Staff Training Training will be provided for payroll, grants accounting, and department personnel involved in charging payroll costs to federal awards to ensure understanding and compliance with the new procedures. Payroll Reconciliation A process will be established to reconcile payroll charges to the grant with actual payroll records at least quarterly, with reviews and approvals documented. Effort Certification Employees whose salaries are charged to federal grants will be required to complete effort certifications, which will be reviewed and retained per federal guidelines. Monitoring and Review Grant accounting and payroll offices will implement an annual review process to ensure continued compliance and address any gaps or errors identified. Due Date of Completion: August 31, 2025 Responsible Part(ies) Vice President for Business and Finance (or appropriate official), Dean of Business and Finance, Restricted Funds Manager, Payroll Manager

View Audit 391086

Finding 1177673 (2024-011)

Material Weakness 2024

Southeast New Mexico College

NM

Matching / Level of Effort / Earmarking Questioned Costs Allowable Costs / Cost Principles § 200.302 § 200.305

Recommendation We recommend the College establish the required written procedures for federal monies and have them available to all personnel who work with federal programs Management Response Corrective Action Unfortunately, due to the untimely completion and release of the June 30, 2023 audit repo...

Recommendation We recommend the College establish the required written procedures for federal monies and have them available to all personnel who work with federal programs Management Response Corrective Action Unfortunately, due to the untimely completion and release of the June 30, 2023 audit report (released on August 8, 2025 - over two years after the end of the June 30, 2023 fiscal year audit), the College did not have the opportunity to review and begin a timely process of addressing a majority of the audit findings until well after the end of the audit period. While the College is committed to corrective action, the delayed delivery of the June 30, 2023 audit limited the ability to implement corrective measures earlier. The College is working proactively to ensure that these issues are resolved going forward. It is important to note that Southeast New Mexico College was a newly established independent community college, having formally separated from New Mexico State University (NMSU) as of April 2022. During this transition period, many administrative processes, including federal grant compliance procedures, were in the process of being developed, transitioned, and implemented independently from NMSU systems. As a result, certain policies, procedures, and documentation processes were not yet fully established or operational at the time of the audit. Corrective Action Taken / Planned: Policy Development • The institution will develop comprehensive written policies and procedures to address compliance requirements related to 2 CFR 200, Subparts D and E of the Uniform Guidance and approved by institutional leadership by July 31, 2025. Policy Review and Approval • Draft policies will be reviewed by VP of Business and Finance and approved by institutional leadership by August 31, 2025. Training • Relevant personnel will be trained on the new policies and procedures to ensure consistent understanding and compliance. Implementation • The institution will fully implement the new procedures by August 31, 2025, and will ensure all departments involved with federal awards are following them. Ongoing Review: • Policies and procedures will be reviewed annually, and updates will be made as necessary to ensure continued compliance with federal regulations. Date of Completion: August 31, 2025 Responsible Parties Vice President for Business and Finance (or appropriate official), Dean of Business and Finance, Director of Finance, Restricted Funds Manager

View Audit 391086

Finding 1177643 (2024-007)

Material Weakness 2024

Jackson County

OH

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

The Sheriff’s Office has separated from the person who oversaw these grants. New procedures have been implemented, and the Chief Deputy is now involved in overseeing these grants as well.

View Audit 391060

Finding 1177046 (2024-007)

Material Weakness 2024

County of Delta

MI

Allowable Costs / Cost Principles Cash Management Questioned Costs § 200.303

2024-007: Material Weakness and Noncompliance – Written Policies Required by the Uniform Guidance Statement of Condition/Criteria: Delta County does not have written policies and procedures to implement the requirements of 2 CFR section 200 for the administration of federal awards. 2 CFR 200.303(a) ...

2024-007: Material Weakness and Noncompliance – Written Policies Required by the Uniform Guidance Statement of Condition/Criteria: Delta County does not have written policies and procedures to implement the requirements of 2 CFR section 200 for the administration of federal awards. 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal controls over the federal awards that provide assurance that the entity is managing the federal awards in compliance with federal statutes, regulations, and the conditions of the federal award. Planned Corrective Action: County management will develop written policies and procedures for grants. Contact person responsible for corrective action: Emily DeSalvo, County Administrator Anticipated Completion Date: March 2026

View Audit 390939

Finding 1177011 (2024-007)

Material Weakness 2024

City of Compton

CA

Internal Control / Segregation of Duties Questioned Costs Subrecipient Monitoring

Management Response and Corrective Action Plan City's Response: The City concurs with the recommendation. Corrective Action Plan: The new Grants policy will be reviewed and approved by the City Manager and implemented by June 2026. Community Development staff will ensure a succession plan is in plac...

Management Response and Corrective Action Plan City's Response: The City concurs with the recommendation. Corrective Action Plan: The new Grants policy will be reviewed and approved by the City Manager and implemented by June 2026. Community Development staff will ensure a succession plan is in place for any staff turnover and for report preparation compliance. Planned Implementation Date: June 2026 Responsible Person(s): City Manager

View Audit 390871

Finding 1177010 (2024-006)

Material Weakness 2024

City of Compton

CA

Internal Control / Segregation of Duties Special Tests & Provisions Questioned Costs

Management Response and Corrective Action Plan City's Response: The City concurs with the recommendation. Corrective Action Plan: The recommendations are included in the new Grants policy. The City Manager shall review and submit to City Council for approval and adoption. Expected implementation by ...

Management Response and Corrective Action Plan City's Response: The City concurs with the recommendation. Corrective Action Plan: The recommendations are included in the new Grants policy. The City Manager shall review and submit to City Council for approval and adoption. Expected implementation by June 2026. Planned Implementation Date: June 2026 Responsible Person(s): City Manager

View Audit 390871

Finding 1177009 (2024-005)

Material Weakness 2024

City of Compton

CA

Questioned Costs Allowable Costs / Cost Principles Reporting

Management Response and Corrective Action Plan City's Response: The City concurs with the recommendation and has implemented hiring for temporary work assignments in order to facilitate update. Corrective Action Plan: The HR and payroll software will be updated by the City by December 2026. Planned ...

Management Response and Corrective Action Plan City's Response: The City concurs with the recommendation and has implemented hiring for temporary work assignments in order to facilitate update. Corrective Action Plan: The HR and payroll software will be updated by the City by December 2026. Planned Implementation Date: December 2026 Responsible Person(s): City Manager

View Audit 390871

Finding 1177006 (2024-003)

Material Weakness 2024

Smithfield Housing Authority

RI

HUD Housing Programs Questioned Costs Reporting

The methodology used for sample selection will be documented and retained to ensure a clear audit trail and demonstrate that the sample was selected in an unbiased manner. Supervisory review of SEMAP certifications and supporting documentation will occur prior to submission to ensure compliance with...

The methodology used for sample selection will be documented and retained to ensure a clear audit trail and demonstrate that the sample was selected in an unbiased manner. Supervisory review of SEMAP certifications and supporting documentation will occur prior to submission to ensure compliance with 24 CFR Â§ 985 requirements. Training has been scheduled for April 7, 2026 which will help ensure that staff are aware of the requirements of SEMAP moving forward for its biennial reporting.

View Audit 390862

Finding 1176876 (2024-002)

Material Weakness 2024

Monterey Park Lions Club Senior Citizens Housing Corporation

CA

Questioned Costs Cash Management HUD Housing Programs

FINDING NUMBER 2024-002 Reporting views of responsible officials: The Company will monitor cash balances or monitor the bank ratings. Concur or do not concur with the finding: Concur with the finding Auditors' summary of auditee's comments on the findings and recommendations: The Company should moni...

FINDING NUMBER 2024-002 Reporting views of responsible officials: The Company will monitor cash balances or monitor the bank ratings. Concur or do not concur with the finding: Concur with the finding Auditors' summary of auditee's comments on the findings and recommendations: The Company should monitor the investments held by these financial institutions to ensure that HUD’s requirements are met. Response indicator: Agree. Response: The Company should monitor the investments held by these financial institutions to ensure that HUD’s requirements are met. Completion date: December 31, 2025

View Audit 390725

Finding 1176875 (2024-001)

Material Weakness 2024

Monterey Park Lions Club Senior Citizens Housing Corporation

CA

Questioned Costs HUD Housing Programs

FINDING NUMBER 2024-001 Reporting views of responsible officials: The Company has already submitted the audit package to the Federal Audit Clearinghouse and the Company will timely file the audit package with the Federal Audit Clearinghouse in the future. Auditors' summary of auditee's comments on t...

FINDING NUMBER 2024-001 Reporting views of responsible officials: The Company has already submitted the audit package to the Federal Audit Clearinghouse and the Company will timely file the audit package with the Federal Audit Clearinghouse in the future. Auditors' summary of auditee's comments on the findings and recommendations: The Company has already submitted the audit package to the Federal Audit Clearinghouse and the Company will timely file the audit package with the Federal Audit Clearinghouse in the future. Concur or do not concur with the finding: Concur with the finding Response: The Company has already submitted the audit package to the Federal Audit Clearinghouse and the Company will timely file the audit package with the Federal Audit Clearinghouse in the future. Completion date: March 26, 2025

View Audit 390725

Finding 1176872 (2024-002)

Material Weakness 2024

Lifespan Corporation and Affiliates

RI

Questioned Costs Cash Management

Corrective Action Plan Year Ended September 30, 2024 Finding 2024-002 AL Numbers: 97.036 Program: Disaster Grants – Public Assistance (Presidentially Declared Disasters) Correction Action: Brown Health management asserts that the methodology applied to estimate and avoid duplication of benefits was ...

Corrective Action Plan Year Ended September 30, 2024 Finding 2024-002 AL Numbers: 97.036 Program: Disaster Grants – Public Assistance (Presidentially Declared Disasters) Correction Action: Brown Health management asserts that the methodology applied to estimate and avoid duplication of benefits was reasonable, allowable, and consistent with FEMA guidance. The projects were previously reviewed, approved, obligated, funded, and closed or in pending close status by FEMA. Formal appeals of FEMA’s subsequent recommended reduction for Bradley Hospital and Newport Hospital were filed. Management continues to cooperate with FEMA and RIEMA during the appeal process. Accordingly, corrective action is contingent upon FEMA’s final determination. Contacts: Stephen Almonte, VP of Finance and Corporate Controller Salmonte3@brownhealth.org Mark Adelman, Director Public Policy and Federal Advocacy Madelman@brownhealth.org Planned Completion Date: Not applicable. Management will evaluate the need for any corrective action plan upon receipt of FEMA’s final determination on the pending appeals.

View Audit 390719

Finding 1176720 (2024-003)

Material Weakness 2024

National Institute for Pharmaceutical Technology and Education, Inc.

MN

Questioned Costs Material Weakness Reporting § 200.512

Corrective Action Plan: A new policy or procedure will be created to ensure a better planning for the future signle audits timelines. Responsible Official: Vadim Gurvich, Executive Director, NIPTE Planned completion date for the CAP: JUNE 30, 2026

View Audit 390626

Finding 1176662 (2024-002)

Material Weakness 2024

Community Action Agency of Butte County, Inc.

CA

Reporting Significant Deficiency Internal Control / Segregation of Duties § 200.302 § 200.303

Corrective Action Plan - Audit Finding 2024-002 Reportable finding considered a significant deficiency - Inadequate support for distribution of donated food 1. Documentation Procedures The Organization has updated its policies in 2025 to ensure all food distributions—including goods received, distri...

Corrective Action Plan - Audit Finding 2024-002 Reportable finding considered a significant deficiency - Inadequate support for distribution of donated food 1. Documentation Procedures The Organization has updated its policies in 2025 to ensure all food distributions—including goods received, distributed, used for on site meal preparation, and leftover items transferred to partner nonprofits—are supported by appropriate documentation. A standardized set of templates will be used to record: • Distribution logs at each location • Congregate Aggregate Feeding Reports • Documentation of leftover or transferred goods All documentation will be retained in a centralized repository accessible to program and compliance staff. ________________________________________ 2. Distribution Tracking Controls The Organization has implemented strengthened controls to ensure accurate and complete tracking of all food commodities. These controls include: • Required completion of distribution logs at all partner locations • Mandatory retention of Congregate Aggregate Feeding Reports • Reconciliation of monthly distribution activity to the Monthly Distribution Report • Documentation of discarded or transferred goods A compliance checklist is being developed to verify that all required documents are collected each month. ________________________________________ 3. Designation of Responsibility A Chief Operating Officer has been assigned responsibility for ensuring that all distribution documentation is collected, retained, and reviewed. Program staff and site partners will receive ongoing training to ensure consistent adherence to the updated tracking requirements. ________________________________________ 4. Review and Approval A formal review and approval process has been established. Monthly Distribution Reports will be reviewed by: • The Chief Operating Officer • The Warehouse Manager Any discrepancies or missing documentation will be investigated and resolved prior to monthly reporting. ________________________________________ 5. Monitoring and Follow Up Beginning in 2025, the Organization implemented ongoing monitoring procedures, including periodic internal audits of distribution files. Quarterly compliance reviews will be performed to assess adherence to documentation requirements and to identify additional training needs. The Warehouse Manager will report quarterly to senior leadership on distribution documentation compliance. Management will continue refining the new processes and providing ongoing training to ensure full, consistent adoption across all distribution sites. The Organization anticipates that these corrective actions will fully address the documentation gaps identified in the audit and strengthen internal controls moving forward. ________________________________________ Implementation Timeline All corrective action steps were initiated in 2025, and full implementation of updated procedures is ongoing. The Organization anticipates complete adoption across all distribution sites by December 31, 2026. ________________________________________ Responsible Personnel • Chief Operating Officer-Food Bank Operations: Thomas Deramore • Warehouse Manager-Food Bank Operations: Sean Conner • Chief Financial Officer: Kate Stefan • Executive Director: Timothy Hawkins ________________________________________ This Corrective Action Plan is designed to address the auditor’s findings, recommendations and prevent recurrence of similar issues to ensure compliance with Uniform Guidance documentation standards and internal control requirements ________________________________________ Signature: ________________________________________ Kate Stefan, Chief Financial Officer Community Action Agency of Butte County, Inc.

View Audit 390526

Finding 1176657 (2024-003)

Material Weakness 2024

Harrington Family Health Center

ME

Internal Control / Segregation of Duties Special Tests & Provisions Questioned Costs

Finding: 2024-003 Condition Found: Through testing a statistically valid sample of 25 individual patient balances, we noted one instance in which the sliding fee discount applied was inconsistent with the Organization’s policy. Based on income and family size, the patient received a discount of $115...

Finding: 2024-003 Condition Found: Through testing a statistically valid sample of 25 individual patient balances, we noted one instance in which the sliding fee discount applied was inconsistent with the Organization’s policy. Based on income and family size, the patient received a discount of $115 but qualified for a discount of $215, resulting in a $100 difference. Individual(s) Responsible for Corrective Action: Tafta McCain, Interim CEO, Fraction CFO – Community Link Consulting, Financial Team Planned Corrective Action: The Organization has revised its sliding fee discount policies and has established controls that streamline the path of sliding fee documentation from time of receipt to patient notification in a spreadsheet shared between front office, financial and billing staff. All pertinent documents are uploaded and hyperlinked to the spreadsheet for easy reference. The corrective action includes implementing quarterly supervisory reviews of sliding fee discounts, defining a sample size, and documenting corrective actions when errors are identified. Additional attention will be given to areas with greater manual processing, including Dental services. Staff training has been reinforced to ensure understanding of policy requirements, and management oversight will verify that monitoring procedures are performed consistently and documented appropriately. These actions will strengthen compliance with Section 330 requirements and reduce the risk of future inconsistencies. Anticipated Completion Date: Document tracking is in progress with quarterly review to begin in April 2026.

View Audit 390525

Finding 1176656 (2024-002)

Material Weakness 2024

Harrington Family Health Center

ME

Internal Control / Segregation of Duties Questioned Costs Reporting § 200.512 § 200.520

Finding: 2024-002 Condition Found: FAC filing for fiscal year ended March 31, 2024 was submitted late. Individual(s) Responsible for Corrective Action: Tafta McCain, Interim CEO, Fraction CFO – Community Link Consulting, Financial Team Planned Corrective Action: The late FAC filing was primarily the...

Finding: 2024-002 Condition Found: FAC filing for fiscal year ended March 31, 2024 was submitted late. Individual(s) Responsible for Corrective Action: Tafta McCain, Interim CEO, Fraction CFO – Community Link Consulting, Financial Team Planned Corrective Action: The late FAC filing was primarily the result of delays in finalizing financial statements and staff turnover. Executive leadership has addressed these issues through the corrective actions implemented under Finding 2024 001, including strengthened monthly close procedures and improved oversight of financial reporting timelines. The organization has also participated in financial technical assistance hosted by HRSA. In addition, the Organization has formalized responsibility for monitoring Single Audit and Federal Audit Clearinghouse deadlines within finance leadership, with executive level oversight to ensure compliance. The Organization has also retained a fractional CFO to provide continuity, expertise, and accountability on an ongoing basis. Management expects these actions to result in timely and compliant FAC submissions in future reporting periods. Anticipated Completion Date: Already completed with anticipated timely filing of FY 2026.

View Audit 390525

Finding 1176612 (2024-002)

Material Weakness 2024

Clare|matrix

CA

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

Responsible Official's Response: In addition to our response to Finding 2024-001, we have hired a new Director of Human Resources as of December 2023. Most of the issues regarding record retention revolve around HR documentation. As such our new Director will have a significant impact on this proces...

Responsible Official's Response: In addition to our response to Finding 2024-001, we have hired a new Director of Human Resources as of December 2023. Most of the issues regarding record retention revolve around HR documentation. As such our new Director will have a significant impact on this process going forward more so in FY 24-25 rather than FY 23-24. We have taken steps to insure the Human Resources records are audit ready and we have implemented our own internal review process to insure record readiness.

View Audit 390433

Finding 1176372 (2024-006)

Material Weakness 2024

Central Community Transit

MN

Questioned Costs Reporting Significant Deficiency

2024-006 UNIFORM GUIDANCE AUDIT REPORTING REQUIREMENTS Federal Agency: Department of Transportation Federal Program: Formula Grants for Rural Areas and Tribal Transit Program Assistance Listing Number: 20.509 Federal Award Identification Number and Year: MN-2020-020-01 Pass-Through Agency: Minnesota...

2024-006 UNIFORM GUIDANCE AUDIT REPORTING REQUIREMENTS Federal Agency: Department of Transportation Federal Program: Formula Grants for Rural Areas and Tribal Transit Program Assistance Listing Number: 20.509 Federal Award Identification Number and Year: MN-2020-020-01 Pass-Through Agency: Minnesota Department of Transportation Pass-Through Number: MN-2020-020-01, MN-2023-045-00 Award Period: Year Ended December 31, 2024 Compliance Requirement: Property and Equipment Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Recommendation: Equipment acquired under federal awards needs to have proper maintenance of records including description, source of funding, who holds title, acquisition date, cost, percentage of Federal agency participation in the cost, location, use and condition, and any disposition data. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Transit Board will continue to work on the maintenance of records for property and equipment acquired under federal awards. Name of the contact person responsible for corrective action: Cecilia Mutharia, Transit Director Planned completion date for corrective action plan: June 30, 2026

View Audit 390191

Finding 1176371 (2024-005)

Material Weakness 2024

Central Community Transit

MN

Questioned Costs Cash Management Material Weakness

2024-005 UNIFORM GUIDANCE AUDIT REPORTING REQUIREMENTS Federal Agency: Department of Transportation Federal Program: Formula Grants for Rural Areas and Tribal Transit Program Assistance Listing Number: 20.509 Federal Award Identification Number and Year: MN-2020-020-01 Pass-Through Agency: Minnesota...

2024-005 UNIFORM GUIDANCE AUDIT REPORTING REQUIREMENTS Federal Agency: Department of Transportation Federal Program: Formula Grants for Rural Areas and Tribal Transit Program Assistance Listing Number: 20.509 Federal Award Identification Number and Year: MN-2020-020-01 Pass-Through Agency: Minnesota Department of Transportation Pass-Through Number: MN-2020-020-01, MN-2023-045-00 Award Period: Year Ended December 31, 2024 Compliance Requirement: Cash Management Type of Finding: Material Weakness in Internal Controls over Compliance Recommendation: The deadline for filing an audit report with the Federal Clearinghouse is 30 days after receiving the audit report or 9 months after year-end, whichever occurs first. It is recommended that prior to year-end, the operation board annually approve an audit schedule timeline. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Transit Board will annually approve a schedule and timeline prior to year-end. In addition, the Transit Board has hired new external auditors who will have sufficient resources to complete the audit by the September 30, 2026 deadline for the December 31, 2025, audit. Name of the contact person responsible for corrective action: Cecilia Mutharia, Transit Director Planned completion date for corrective action plan: June 30, 2026

View Audit 390191

Corrective Action Plans

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