Corrective Action Plans

Finding 1220176 (2025-009)

Material Weakness 2025

DC

Student Financial Aid Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303

The University of the District of Columbia (UDC) agrees with the conditions and recommendations of this finding. The Office of Financial Aid experienced staff turnover, which impacted the timeliness of reporting submissions to the Common Origination and Disbursement (COD) system. This challenge was ...

The University of the District of Columbia (UDC) agrees with the conditions and recommendations of this finding. The Office of Financial Aid experienced staff turnover, which impacted the timeliness of reporting submissions to the Common Origination and Disbursement (COD) system. This challenge was further compounded by the need to train and cross-train staff to ensure continuity in reporting responsibilities. To address this issue, the office has identified and trained two staff members who are capable of originating and submitting enrollment reporting to COD. Additionally, we have implemented enhanced internal controls, including weekly reporting processes, to ensure compliance with all required deadlines. These measures are designed to ensure that records are submitted within the mandated 15-day timeframe.

View Audit 405318

Finding 1220172 (2025-008)

Material Weakness 2025

Government of the District of Columbia

DC

Subrecipient Monitoring Questioned Costs Procurement, Suspension & Debarment § 200.303

The Office of the Deputy Mayor for Planning and Economic Development (DMPED) concurs with the auditor’s findings and recommendations. Create clear communications and instructions for DMPED grant administrators to include as a required reporting responsibility. Add internal controls and policies that...

The Office of the Deputy Mayor for Planning and Economic Development (DMPED) concurs with the auditor’s findings and recommendations. Create clear communications and instructions for DMPED grant administrators to include as a required reporting responsibility. Add internal controls and policies that include a supervisory review of the report information before it is submitted to the System for Award Management (sam.gov) website.

View Audit 405318

Finding 1220162 (2025-002)

Material Weakness 2025

Government of the District of Columbia

DC

Internal Control / Segregation of Duties Questioned Costs Special Tests & Provisions § 200.303

The Office of the Chief Financial Officer/Office of Finance and Treasury (OCFO/OFT) for Department of Human Services (DHS) concurs with this finding. Quarterly UPO internal audits and Quarterly Regis audits will continue to assist in identifying areas of noncompliance and improvement. In addition, t...

The Office of the Chief Financial Officer/Office of Finance and Treasury (OCFO/OFT) for Department of Human Services (DHS) concurs with this finding. Quarterly UPO internal audits and Quarterly Regis audits will continue to assist in identifying areas of noncompliance and improvement. In addition, the EBT Manager and Supervisors will implement enhanced review and validation procedures of daily card production documentation, including targeted quality checks and supervisory oversight, to ensure alignment with established requirements. Employees will be held accountable for performing in accordance with documented procedures, and corrective actions will be applied as needed to address gaps. These efforts are intended to improve consistency, reduce risk, and ensure sustained compliance with program requirements.

View Audit 405318

Finding 1220160 (2025-001)

Material Weakness 2025

Government of the District of Columbia

DC

Eligibility Reporting Matching / Level of Effort / Earmarking § 200.303

The Department of Human Services (DHS) and Department of Health Care Finance (DHCF) DC Access System (DCAS) team agree with the findings. For the twelve (12) findings, DHS/ESA has identified the description of the deficiencies, examined the magnitude and geographic extent of the deficiencies, identi...

The Department of Human Services (DHS) and Department of Health Care Finance (DHCF) DC Access System (DCAS) team agree with the findings. For the twelve (12) findings, DHS/ESA has identified the description of the deficiencies, examined the magnitude and geographic extent of the deficiencies, identified the actions completed to eliminate the deficiencies. The District will focus on efforts that will create the maximum impact, which includes creating new options for collaboration, streamlining current communication, and introducing cross-functional prioritization. These strategies will help the District move projects toward completion and are rooted in continuous quality improvement. To guide its strategic efforts and track its impact, DHS has outlined the following four phases of corrective action plans to be taken to ensure the deficiencies will be eliminated: • Review and Prioritization, • Design and Development, • Implementation, and • Monitor and Evaluation. Each phase has several process steps including a completion document that signals the permission to move to the next phase. The detailed process steps are documented under DHS’ Consolidated Semi-Annual SNAP Advance Warning Letter Corrective Action Plan and FFY2026 Quality Control Corrective Action Plan reports. The corrective action plan is facilitated by the Quality Improvement Program and since implementing this process in January 2021, the District has identified root causes for errors and gaps in internal auditing and evaluation processes. Therefore, the flow of the semi-annual corrective action plans reflects the District’s commitment to a collaborative corrective action plan - expanding the data analysis section to include data and analysis of internal methods, a complete summary of each phase completed, and a timeline for upcoming phase/project completion.

View Audit 405318

Finding 1220158 (2025-002)

Material Weakness 2025

United Planning Organization

DC

Questioned Costs Eligibility Significant Deficiency § 200.303 § 200.403

Finding 2025-002: Agency: U.S. Department of Health and Human Services (CSBG) Program: Community Service Block Grant (AL No. 93.569) Significant Deficiency and Noncompliance over Eligibility Condition: During our testing of participant eligibility for the CSBG program, we noted the following excepti...

Finding 2025-002: Agency: U.S. Department of Health and Human Services (CSBG) Program: Community Service Block Grant (AL No. 93.569) Significant Deficiency and Noncompliance over Eligibility Condition: During our testing of participant eligibility for the CSBG program, we noted the following exceptions out of a sample size of 40: (1) for one participant, the CSBG eligibility form was not signed by the case manager; and (2) for two participants, we were unable to obtain documentation to support proof of residence. Recommendation: We recommend that management strengthen internal controls over eligibility determination and documentation to ensure compliance with federal program requirements. Management should establish procedures to require complete and signed eligibility forms prior to approving or providing program benefits and consider implementing a standardized eligibility checklist to ensure all required supporting documentation (e.g., income verification, residency, other criteria) is obtained and retained. Auditee Response and Corrective Action Plan: UPOManagement acknowledges the audit finding and will ensure that staff follow established internal control activities to ensure compliance with CSBG participant eligibility. UPO will institute continuous training and increased monitoring of compliance by the internal Office of Performance Management regarding the review, retention, and documentation of eligibility determination evidence submitted by program participants. Anticipated Completion Date: September 30, 2026

View Audit 405313

Finding 1220157 (2025-001)

Material Weakness 2025

United Planning Organization

DC

Allowable Costs / Cost Principles Questioned Costs Period of Performance § 200.309

FINDING – Federal Award Finding 2025-001: Agency: U.S. Department of Health and Human Services (CSBG) Program: Community Service Block Grant (AL No. 93.569) Significant Deficiency and Noncompliance over Allowable Costs / Period of Performance Repeat Finding: No Condition: During our testing over all...

FINDING – Federal Award Finding 2025-001: Agency: U.S. Department of Health and Human Services (CSBG) Program: Community Service Block Grant (AL No. 93.569) Significant Deficiency and Noncompliance over Allowable Costs / Period of Performance Repeat Finding: No Condition: During our testing over allowable costs, we identified 2 transactions in the amount of $38,225 that were incurred in fiscal years 2022 and 2023; however, those costs were recorded as federal expenditure and revenue in fiscal year 2025. The current CSBG grant covering fiscal year 2025 covers the period October 1, 2024 – September 30, 2025, as such, those costs were recorded outside of the period of performance and as such are unallowable. Recommendation: We recommend that management strengthen controls over the timing of federal expenditure recognition to ensure costs are recorded in the proper period of performance. Additionally, the entity should implement procedures to review and reconcile expected expenses to actual invoices received on a periodic basis to ensure all vendor invoices have been timely received. Auditee Response and Corrective Action Plan: UPO has recently implemented two methods for procuring goods and services to address the noted condition. Use of the P-Card for micropurchases and the Purchase Request for larger purchases. P-Card purchases will allow recurring vendor invoices and payments to be captured in real time and recorded in the appropriate billing and funding period. Mandatory use of Purchase Request/PO for all other purchases, to allow the program and finance team to monitor invoices and obligations, and record them within the funding period.

View Audit 405313

Finding 1220139 (2025-005)

Material Weakness 2025

Dallas County

TX

Special Tests & Provisions Questioned Costs Reporting § 200.303

Corrective action plan: Dallas County HCVP will expand inspection capacity by hiring additional full-time and contractual inspectors, including an Inspector Supervisor to ensure timely completion of all inspections. Additionally, the Housing Supervisor will review inspection status regularly to ensu...

Corrective action plan: Dallas County HCVP will expand inspection capacity by hiring additional full-time and contractual inspectors, including an Inspector Supervisor to ensure timely completion of all inspections. Additionally, the Housing Supervisor will review inspection status regularly to ensure compliance with HUDrelated inspection schedules. Increasing staffing levels will allow the program to meet HUD-required timeframes consistently and reduce the likelihood of delays. Implementation dates: September 30, 2026 Responsible persons: Kesete Yohannes, Assistant Director of Housing

View Audit 405307

Finding 1220137 (2025-003)

Material Weakness 2025

Dallas County

TX

Questioned Costs Subrecipient Monitoring Eligibility § 200.303

Corrective Action Plan: Dallas County HCVP leadership addressed EIV compliance during the April 2026 and May 2026 monthly staff meetings and will continue to emphasize the requirement. Review of meetings agendas dated April 22, 2026, and May 20, 2026, confirm that EIV compliance was discussed. Addit...

Corrective Action Plan: Dallas County HCVP leadership addressed EIV compliance during the April 2026 and May 2026 monthly staff meetings and will continue to emphasize the requirement. Review of meetings agendas dated April 22, 2026, and May 20, 2026, confirm that EIV compliance was discussed. Additionally, the HCVP Housing Supervisor issued an email to all staff reiterating the requirement to retain EIV reports for all transactions, including but limited to recertifications, interims, and relocations. Implementation Date: June 11, 2026 Responsible Party: Kesete Yohannes, Assistant Director of Housing

View Audit 405307

Finding 1220128 (2025-009)

Material Weakness 2025

Scotts Bluff County School District No. 16 Gering Public Schools

NE

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

American Rescue Plan Elementary and Secondary School Emergency Relief (ARP ESSER) Fund – Assistance Listing No. 84.425 Recommendation: We recommend the District strengthen internal controls over ESSER-funded construction projects by ensuring all contracts contain required prevailing wage provisions ...

American Rescue Plan Elementary and Secondary School Emergency Relief (ARP ESSER) Fund – Assistance Listing No. 84.425 Recommendation: We recommend the District strengthen internal controls over ESSER-funded construction projects by ensuring all contracts contain required prevailing wage provisions when applicable. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: If given ESSER funding again we will ensure the district abides by the adequate controls for funded contracts. Name(s) of the contact person(s) responsible for corrective action: Stacy Rodriguez Director of Finance Planned completion date for corrective action plan: September 2025

View Audit 405300

Finding 1220124 (2025-008)

Material Weakness 2025

Scotts Bluff County School District No. 16 Gering Public Schools

NE

Questioned Costs Subrecipient Monitoring

American Rescue Plan Elementary and Secondary School Emergency Relief (ARP ESSER) Fund – Assistance Listing No. 84.425 Recommendation: We recommend the District establish and document formal procedures to ensure compliance with equitable services requirements for ESSER funds. These procedures should...

American Rescue Plan Elementary and Secondary School Emergency Relief (ARP ESSER) Fund – Assistance Listing No. 84.425 Recommendation: We recommend the District establish and document formal procedures to ensure compliance with equitable services requirements for ESSER funds. These procedures should include timely and meaningful consultation with private school officials, proper documentation of consultation and decision‑making, and ongoing monitoring to ensure services are provided in accordance with federal requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We will ensure compliance with equitable services to private schools. Name(s) of the contact person(s) responsible for corrective action: Stacy Rodriguez Director of Finance Planned completion date for corrective action plan: September 2025

View Audit 405300

Finding 1220120 (2025-007)

Material Weakness 2025

Scotts Bluff County School District No. 16 Gering Public Schools

NE

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.430

American Rescue Plan Elementary and Secondary School Emergency Relief (ARP ESSER) Fund – Assistance Listing No. 84.425 Recommendation: We recommend the District implement written procedures that require timely preparation and retention of documentation supporting the work performed and allocation me...

American Rescue Plan Elementary and Secondary School Emergency Relief (ARP ESSER) Fund – Assistance Listing No. 84.425 Recommendation: We recommend the District implement written procedures that require timely preparation and retention of documentation supporting the work performed and allocation methodology and supervisory review/approval consistent with the District's policies. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The district will ensure we are completing time and effort logs for staff who are federally funded. Name(s) of the contact person(s) responsible for corrective action: Stacy Rodriguez Director of Finance Planned completion date for corrective action plan: September 2025

View Audit 405300

Finding 1220116 (2025-006)

Material Weakness 2025

Scotts Bluff County School District No. 16 Gering Public Schools

NE

Questioned Costs Reporting Matching / Level of Effort / Earmarking § 200.512

All programs Recommendation: We recommend the District implement procedures to monitor audit reporting deadlines and ensure the data collection form and reporting package are submitted to the Federal Audit Clearinghouse within the required timeframe. Explanation of disagreement with audit finding: T...

All programs Recommendation: We recommend the District implement procedures to monitor audit reporting deadlines and ensure the data collection form and reporting package are submitted to the Federal Audit Clearinghouse within the required timeframe. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We had a different auditing firm and were under the impression they had submitted it. We will ensure we will not be late again and submit it on time. . Name(s) of the contact person(s) responsible for corrective action: Stacy Rodriguez Director of Finance Planned completion date for corrective action plan: September 2025

View Audit 405300

Finding 1220102 (2025-005)

Material Weakness 2025

Scotts Bluff County School District No. 16 Gering Public Schools

NE

Allowable Costs / Cost Principles Questioned Costs Cash Management § 200.302 § 200.303

Child Nutrition Cluster – Assistance Listing No. 10.CNC Recommendation: We recommend the District implement a formal process requiring documented evidence of review and approval of all reimbursement requests prior to submission, such as dated sign-offs or electronic approval records, to strengthen i...

Child Nutrition Cluster – Assistance Listing No. 10.CNC Recommendation: We recommend the District implement a formal process requiring documented evidence of review and approval of all reimbursement requests prior to submission, such as dated sign-offs or electronic approval records, to strengthen internal controls 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: The District will provide formal documentation by reviewing and signing the claims for approval of reimbursement requests before submission to the state. Name(s) of the contact person(s) responsible for corrective action: Stacy Rodriguez Director of Finance Planned completion date for corrective action plan: September 2025

View Audit 405300

Finding 1220083 (2025-002)

Material Weakness 2025

Fulton Atlanta Community Action Authority, Inc.

GA

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303 § 200.430

Comment #2025-001 COMPENSATION METHODOLOGY SHOULD BE REVIEWED FOR INCENTIVE PAYMENTS COMMUNITY SERVICES BLOCK GRANT AND LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM FAL #93.569 and 93.568 Views of Responsible Officials and Planned Corrective Actions: Management concurs with the recommendation. FACAA up...

Comment #2025-001 COMPENSATION METHODOLOGY SHOULD BE REVIEWED FOR INCENTIVE PAYMENTS COMMUNITY SERVICES BLOCK GRANT AND LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM FAL #93.569 and 93.568 Views of Responsible Officials and Planned Corrective Actions: Management concurs with the recommendation. FACAA updated its Incentive Compensation Policy, which was approved by the Board of Directors, in accordance with 2 CFR 200.430 and 2 CFR 200.303. The policy establishes the methodology for incentive payments, and all incentive payments have been documented and supported by appropriate records to ensure compliance with applicable federal requirements. Implementation Date: Effective immediately, our policies have been enhanced to clarify and support our methodology used during the periods noted under review, and for all subsequent periods. Responsible Person(s): Dr. Howard Grant, President/CEO

View Audit 405272

Finding 1220059 (2025-001)

Material Weakness 2025

Chisholm-Hibbing Airport Authority

MN

Internal Control / Segregation of Duties Questioned Costs Reporting

Actions Planned - The Authority is not in position to hire additional staff members for the sole purpose of eliminated the segregation of duties finding from our audit. The Airport Office Adminstrator communicates with the Executive Director and commission members regarding all major account transac...

Actions Planned - The Authority is not in position to hire additional staff members for the sole purpose of eliminated the segregation of duties finding from our audit. The Airport Office Adminstrator communicates with the Executive Director and commission members regarding all major account transactions, including the recording of recurring and non-recurring jounral entry adjustments. The commission meets monthly and closely monitors the financial information provded to them. Official responsible: Airport Office Administrator Planned Completion Date - On-going monitoring Disagreement with Finding - none, the Authority concurs with the finding. Plan to Monitor - The Authority is aware of the situation and will monitor, as it deems appropriate. Monitoring will include commission member oversight for the interim and year-end reporting.

View Audit 405239

Finding 1219681 (2025-001)

Material Weakness 2025

Broward County, Florida

FL

Eligibility Questioned Costs Procurement, Suspension & Debarment

Management concurs with this finding. The expenditure understatement in the initial Schedule of Expenditures of Federal Awards (SEFA) for ALN 97.036 (Disaster Grants – Public Assistance) was caused by an operating deficiency in year-end review procedures, rather than the design of the control itself...

Management concurs with this finding. The expenditure understatement in the initial Schedule of Expenditures of Federal Awards (SEFA) for ALN 97.036 (Disaster Grants – Public Assistance) was caused by an operating deficiency in year-end review procedures, rather than the design of the control itself. Although the discrepancy was not identified internally prior to the initial draft submission, the error was isolated to the aforementioned program and fully corrected before the final draft SEFA was issued to the Auditors. Management is committed to strengthening the controls necessary to ensure complete and accurate SEFA reporting going forward. The FASD Division, in coordination with the Emergency Management Division and the Broward Sheriff’s Office (BSO), will enhance the SEFA Preparation and Reconciliation Protocol for year-end September 30, 2026. To ensure compliance, all departments administering and reporting under ALN 97.036 will receive comprehensive training on Uniform Guidance and FEMA Public Assistance (PA) reporting requirements prior to the fiscal year-end.

View Audit 405215

Finding 1219677 (2025-001)

Material Weakness 2025

Jacksonville Housing Authority

FL

HUD Housing Programs Questioned Costs Eligibility

FINDING SUMMARY: Jacksonville Housing Authority (JHA) identified deficiencies within the Low-Income Public Housing and Housing Choice Voucher Program related to eligibility determinations, including missing documentation, incomplete reexaminations, incorrect income calculations, and insufficient qua...

FINDING SUMMARY: Jacksonville Housing Authority (JHA) identified deficiencies within the Low-Income Public Housing and Housing Choice Voucher Program related to eligibility determinations, including missing documentation, incomplete reexaminations, incorrect income calculations, and insufficient quality control processes. These deficiencies resulted in non-compliance with 24 CFR 960.257 and 24 CFR 960.259. CORRECTIVE ACTION FRAMEWORK: JHA has established a PHAS and SEMAP-aligned compliance tracking framework which includes: • Defined compliance indicators • Measurable performance thresholds • Monthly monitoring and reporting • Documented corrective actions and outcomes Each corrective action below is tied to an audit find. Corrective Action: • JHA will continue to monitor deficiencies to effectively streamline internal process controls including but not limited to the hiring of quality control analysts, data integrity analysts and monthly file auditing • JHA will create a sample file to ensure standardization. • JHA will provide training to all new employees within 60 days and refresher course training for all existing employees. • JHA performs monthly audits of 10% of files and maintains a quality control system to track error trends, identify deficiencies

View Audit 405213

Finding 1219668 (2025-001)

Material Weakness 2025

City of Long Beach

CA

Matching / Level of Effort / Earmarking Subrecipient Monitoring Questioned Costs § 200.303 § 200.511

Program:HOME Investment Partnerships Program (HOME) Finding:2025-001 Contact Person:April Apodaca Administrative & Financial Services Bureau Manager Community Development Department Phone: (562) 570-6611 Email: April.Apodaca@longbeach.gov Planned Actions: The City has exercised its rights to enforce...

Program:HOME Investment Partnerships Program (HOME) Finding:2025-001 Contact Person:April Apodaca Administrative & Financial Services Bureau Manager Community Development Department Phone: (562) 570-6611 Email: April.Apodaca@longbeach.gov Planned Actions: The City has exercised its rights to enforce compliance with the terms of its contractual arrangement for this standalone developer/owner, which has resulted in the highest levels of legal action. Through its established monitoring and review procedures, City staff identified documents submitted by the developer that appeared to be inaccurate or falsified. This discovery prompted a multi-year investigation and subsequent litigation, undertaken in direct collaboration and response to instructions as directed by HUD. Throughout this period, the City’s investigative and litigation activities have not been historically viewed as compliance concerns, particularly given their necessity in preserving the integrity of the legal process. At every stage, the City has acted consistently with HUD’s directives and the requirements of the applicable contractual framework. During the multi‑year investigation, HUD expressly instructed the City to continue normal program operations to avoid alerting the developer and to maintain the integrity of the ongoing inquiry. The City respectfully asserts that the audit finding is inconsistent with HUD’s guidance and the historical practices necessary to ensure effective enforcement. Since the initial identification of the finding, the City has taken all reasonable corrective actions within its authority to address the issue and mitigate associated risks. These actions include following established monitoring procedures to ensure compliance with HOME program requirements, making repeated documented requests for tenant eligibility records from the developer/owner, and escalating efforts through the City Attorney. This issue is isolated to one developer/owner and sampling for other developers/owners has not identified similar concerns. The City has been transparent about the ongoing litigation involving the standalone developer/owner responsible for maintaining the records and remains committed in resolving this matter and in pursuing additional actions available once the legal proceedings have been concluded.

View Audit 405210

Finding 1219554 (2025-004)

Material Weakness 2025

Homes for Good Housing Agency

OR

Cash Management HUD Housing Programs Questioned Costs § 200.302 § 200.305 § 200.516

Cash Management Moving to Work Demonstration Program AL No. 14.881 Other matter required to be reported in accordance with 2 CFR 200.516(a) Condition: Out of the 66 grant drawdowns during the year, 19 drawdowns were tested and it was noted that 1 of the drawdowns was made in advance of the supportin...

Cash Management Moving to Work Demonstration Program AL No. 14.881 Other matter required to be reported in accordance with 2 CFR 200.516(a) Condition: Out of the 66 grant drawdowns during the year, 19 drawdowns were tested and it was noted that 1 of the drawdowns was made in advance of the supporting invoices being paid to the vendors and subsequently the invoices were not paid within three business days, as required. Auditor’s Recommendations: The Agency should continue to develop and implement internal controls over grant management to coordinate capital fund draws with the timing of invoice payments. Action Taken: Action Due Date Responsible Person This finding occurred prior to the staff receiving the results of the previous audit. There have been no additional invoice payments outside of the 3-day allowable time. Staff developed and implemented an internal tracking document to ensure payments are made within three days of the draw. Complete – May 2025 Accounting Technician, Kary Smith, Lauren Hodgens and Ryan Bates

View Audit 405133

Finding 1219549 (2025-004)

Material Weakness 2025

Mobridge Regional Hospital

SD

Special Tests & Provisions Questioned Costs Subrecipient Monitoring § 200.303

Federal Agency Name: Department of Agriculture Program Name: Community Facilities Loans and Grants Federal Financial Assistance Listing Number: 10.766 Finding Summary: As a part of the audit process, a reclassification entry was made to move an additional 12 months of reserve funds from the cash swe...

Federal Agency Name: Department of Agriculture Program Name: Community Facilities Loans and Grants Federal Financial Assistance Listing Number: 10.766 Finding Summary: As a part of the audit process, a reclassification entry was made to move an additional 12 months of reserve funds from the cash sweep general fund to a separate bookkeeping account. The Hospital had excess cash available to cover the required reserve amount for the fiscal year. Responsible Individuals: Renae Karst, Chief Financial Officer Corrective Action Plan: Management will fund the reserve account from the cash sweep general fund and will monitor the separate bookkeeping account throughout the year to ensure the reserve is properly funded throughout the year as required by the loan documents. Anticipated Completion Date: June 30, 2026

View Audit 405128

Finding 1219175 (2025-003)

Material Weakness 2025

Charter Township of Chesterfield

MI

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles

Written Policies Required by the Uniform Guidance Auditor Description of Criteria, Condition, and Effect: The Uniform Guidance requires a non-federal entity that has expended federal awards for a grant awarded on or after December 26, 2014 to have written policies pertaining to: 1) Payments (draws o...

Written Policies Required by the Uniform Guidance Auditor Description of Criteria, Condition, and Effect: The Uniform Guidance requires a non-federal entity that has expended federal awards for a grant awarded on or after December 26, 2014 to have written policies pertaining to: 1) Payments (draws of federal funds and how to minimize the time lapsing between the receipt of federal funds and the disbursement to contractors/employees/subrecipients) (§200.302(6)); 2) Allowability of costs charged to federal programs (§200.302(7)); and 3) Compensation (personnel and benefits policy) (§200.430 and §200.431). Although the Township has processes in place to cover these areas, there are no formal written policies covering payments, allowability of costs, and compensation. As a result of this condition, the Township did not fully comply with the Uniform Guidance applicable to the above noted grants. Auditor Recommendation: We are aware that the Township is evaluating options using internal and external resources to take corrective action. We recommend that the Township proceed with its selected option as soon as practical, but no later than the end of the next fiscal year. Corrective Action: As noted in the auditor recommendation, the Township is in the process of evaluating a draft grant administration policy, which will address items #1 and #2 (payments and allowability of costs charged to federal programs). Item #3 (compensation) will be addressed via review and modification as needed of the Township’s personnel manual to ensure compliance. Responsible Persons: Karen Trombley, Accounting Coordinator; Sarah Mistretta, Human Resources Director Anticipated Completion Date: December 31, 2026

View Audit 405111

Finding 1219173 (2025-002)

Material Weakness 2025

Charter Township of Chesterfield

MI

Questioned Costs Allowable Costs / Cost Principles Reporting

Noncompliance with Grant Reporting Frequency Requirements Auditor Description of Criteria, Condition, and Effect: Per the grant agreement for funds received from the Michigan Department of Environment, Great Lake, and Energy ("EGLE") the Township is required to submit financial status reports on a m...

Noncompliance with Grant Reporting Frequency Requirements Auditor Description of Criteria, Condition, and Effect: Per the grant agreement for funds received from the Michigan Department of Environment, Great Lake, and Energy ("EGLE") the Township is required to submit financial status reports on a monthly basis, but instead submitted their reports on a quarterly basis. The Township failed to file financial status reports as required by the Township's grant agreement with EGLE. As a result of this condition, the Township did not comply fully with the reporting requirements under this federal award. Auditor Recommendation: We recommend that the Township review its procedures for compiling financial data for external reporting purposes and develop a calendar by which grant managers and Township administration are notified of pending due dates. Financial reports should be supported by general ledger reports (which should be retained internally along with a copy of the report) and subjected to review and approval by an independent employee or administrator prior to submission. Corrective Action: The Township will strive to submit required reports to EGLE on a monthly basis as required. Expectation will be established via the grant calendar for this grant to be established as noted in finding 2025-001. Responsible Person: Karen Trombley, Accounting Coordinator Anticipated Completion Date: December 31, 2026

View Audit 405111

Finding 1219169 (2025-002)

Material Weakness 2025

Housing Authority of the City of Hoboken

NJ

HUD Housing Programs Questioned Costs Special Tests & Provisions

Authority's Response and Planned Corrective Action: The Authority acknowledges the deficiencies identified in the Section 8 Housing Choice Vouchers program and has implemented internal control procedures to ensure compliance with federal regulations. The Auditor selected two files out of 17 leased u...

Authority's Response and Planned Corrective Action: The Authority acknowledges the deficiencies identified in the Section 8 Housing Choice Vouchers program and has implemented internal control procedures to ensure compliance with federal regulations. The Auditor selected two files out of 17 leased units in the Audit period. In one, the Rent Reasonableness verification documentation was missing. HHA staff will review all 17 newly leased units from the Audit period to assure compliance. In addition, HHA has implemented a system for all new lease ups to assure full compliance with Rent Reasonableness documentation. This includes the Assistant Director of Management reviewing all files before a unit is leased. Marc A. Recko, Executive Director was designated to be responsible for implementing this corrective action by September 30, 2026.

View Audit 405100

Finding 1219145 (2025-003)

Material Weakness 2025

Day Kimball Healthcare

CT

Cash Management Questioned Costs Reporting § 200.305

Management acknowledges the importance of cash management policies with regards to reimbursable programs. Day Kimball Healthcare is committed to full compliance with federal cash management requirements and takes seriously its obligation to request reimbursement only after program expenditures have ...

Management acknowledges the importance of cash management policies with regards to reimbursable programs. Day Kimball Healthcare is committed to full compliance with federal cash management requirements and takes seriously its obligation to request reimbursement only after program expenditures have been both incurred and paid. During fiscal year 2025, the employee responsible for previous reporting of these expenses retired, and the job function of submission and review of this grant passed on to other individuals. Management recognizes that our existing review process did not include a sufficient control step to verify payment status prior to submission of reimbursement requests, and employees have now been trained on proper procedure, which includes confirmation of payment of expenses before submission is allowed. In addition, the reviewer is now aware of this requirement and confirmation of payment is now a part of this individual’s responsibilities as well. Going forward into fiscal year 2026 Management believes these controls will prevent similar findings from occurring. Sheena Farner, Director of Budget & Financial Reporting, will oversee this corrective action plan to be fully implemented by September 30, 2026.

View Audit 405083

Finding 1219143 (2025-002)

Material Weakness 2025

Monroe County

MI

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles

Written Policies Required by the Unfiform Grant Guidance Auditor Description of Criteria, Condition, and Effect: The Uniform Guidance requires a non-federal entity that has expended federal awards for a grant awarded on or after December 26, 2014 to have written policies pertaining to: 1) Payments (...

Written Policies Required by the Unfiform Grant Guidance Auditor Description of Criteria, Condition, and Effect: The Uniform Guidance requires a non-federal entity that has expended federal awards for a grant awarded on or after December 26, 2014 to have written policies pertaining to: 1) Payments (draws of federal funds and how to minimize the time lapsing between the receipt of federal funds and the disbursement to contractors/employees/subrecipients) (§200.302(6)); 2) Allowability of costs charged to federal programs (§200.302(7)); and 3) Compensation (personnel and benefits policy) (§200.430 and §200.431). Although the County has processes in place to cover these areas, there are no formal written policies covering payments, allowability of costs, and compensation. As a result of this condition, the County did not fully comply with the Uniform Guidance applicable to the above noted grants. Auditor Recommendation: We are aware that the County is evaluating options using internal and external resources to take corrective action. We recommend that the County proceed with its selected option as soon as practical, but no later than the end of the next fiscal year. Corrective Action: The County will proceed with its selected option no later than the end of the next fiscal year. Responsible Person: Susan Maier, Director of Fiscal Services Anticipated Completion Date: December 31, 2026

View Audit 405078

Corrective Action Plans

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