Corrective Action Plans

Finding 1153303 (2024-004)

Material Weakness 2024

Benet Place

MN

Questioned Costs HUD Housing Programs Significant Deficiency

Significant Deficiency: Missing one deposit to the replacement reserve. $11,422 Recommendation: The Project should establish and follow a consistent monthly review process to ensure all deposits to the replacement reserve are made on a timely basis. Explanation of disagreement with audit finding: Th...

Significant Deficiency: Missing one deposit to the replacement reserve. $11,422 Recommendation: The Project should establish and follow a consistent monthly review process to ensure all deposits to the replacement reserve are made on a timely basis. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management continues to review and establish processes related to review and approval to ensure monthly replacement reserve deposits are made.

View Audit 366519 Questioned Costs: $1

Finding 1153301 (2024-002)

Material Weakness 2024

Benet Place

MN

Questioned Costs Allowable Costs / Cost Principles HUD Housing Programs

Material Weakness: Unauthorized Loan Recommendation: Management should implement a monthly review process to ensure that management fees are billed in accordance with the terms of the management agreement. Additionally, payroll allocations should be reviewed monthly to confirm that only the appropri...

Material Weakness: Unauthorized Loan Recommendation: Management should implement a monthly review process to ensure that management fees are billed in accordance with the terms of the management agreement. Additionally, payroll allocations should be reviewed monthly to confirm that only the appropriate share of expenses is charged to the Project. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management continues to review and establish month end and year end procedures to properly record management fees accordance with HUD approved rate. The payroll allocation issue arose due to a salary allocation being missed during the property management transition. Management continues to review and establish procedures related to payroll allocations to ensure correct expenses are allocated to the Project.

View Audit 366519 Questioned Costs: $1

Finding 1153300 (2024-002)

Material Weakness 2024

St Croix Valley Supportive Housing for the Elderly, Inc.

WI

Questioned Costs Allowable Costs / Cost Principles HUD Housing Programs

Federal Agency: U.S. Dept. of Housing and Urban Development Federal Program: Section 202 Capital Advance Assistance Listing Number: 14.157 Federal Award Identification Number and Year: WI39S971003-23Z-2023 2024-002 Material Weakness: Unauthorized Loan Recommendation: Payroll allocations should be re...

Federal Agency: U.S. Dept. of Housing and Urban Development Federal Program: Section 202 Capital Advance Assistance Listing Number: 14.157 Federal Award Identification Number and Year: WI39S971003-23Z-2023 2024-002 Material Weakness: Unauthorized Loan Recommendation: Payroll allocations should be reviewed monthly to confirm that only the appropriate share of expenses is charged to the Project. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The issue arose due to a salary allocation being missed during the general ledger conversion. Management continues to review and establish procedures related to payroll allocations to ensure correct expenses are allocated to the Project. Names of the contact persons responsible for corrective action: Tom Krolak Planned completion date for corrective action plan: December 31, 2025

View Audit 366518 Questioned Costs: $1

Finding 1153290 (2024-001)

Material Weakness 2024

Town of Exeter

NH

Questioned Costs Matching / Level of Effort / Earmarking § 200.306

Management recognizes its responsibility for understanding and adhering to the Cost Sharing rules outlined under 2 CFR 200.306. Management is working with the New Hampshire Dept. of Environmental Services to correct any funding requests for the Webster Ave. Pump Station project in which ARPA funds w...

Management recognizes its responsibility for understanding and adhering to the Cost Sharing rules outlined under 2 CFR 200.306. Management is working with the New Hampshire Dept. of Environmental Services to correct any funding requests for the Webster Ave. Pump Station project in which ARPA funds were used as a match against the project’s federal CDS grant. Prior to submitting its first CDS funding request to EPA, engineers for the project requested guidance from an EPA representative on matching local funding for the project with CDS funding. The feedback they received led us to believe that using ARPA against CDS funding was not an issue since in total the project’s local funding source (CWSRF) far exceeded the 20% CDS match requirement. Considering the actual Cost Sharing rules under 2 CFR 200.306, the feedback was misinterpreted.

View Audit 366485 Questioned Costs: $1

Finding 1153133 (2024-002)

Material Weakness 2024

Career School of Ny, Inc.

NY

Questioned Costs

The School already has implemented a formal process to work with outside auditor to develop an appropriate time line for the completion of future audits on schedule that allows for timely filing of the Single Audit.

View Audit 366365 Questioned Costs: $1

Finding 1153132 (2024-001)

Material Weakness 2024

Career School of Ny, Inc.

NY

Questioned Costs Student Financial Aid Matching / Level of Effort / Earmarking

The School will put additional resources in place to ensure monthly reconciliation going forward. Anticiapted date of completion by November 2025

View Audit 366365 Questioned Costs: $1

Finding 1153102 (2024-002)

Material Weakness 2024

Cascadia Behavioral Healthcare, Inc.

OR

Questioned Costs Procurement, Suspension & Debarment § 200.320

Corrective action planned – Management recognizes that procurement is a material concern of the organization both from an operational efficiency and regulatory compliance perspective. During the audited time period, procurement responsibilities were decentralized, resulting in inconsistent complianc...

Corrective action planned – Management recognizes that procurement is a material concern of the organization both from an operational efficiency and regulatory compliance perspective. During the audited time period, procurement responsibilities were decentralized, resulting in inconsistent compliance. In April 2025, Management decided to create a dedicated Procurement Department and began staffing the department. The new Procurement team is tasked with reviewing all current procurement policies and procedures, revising and creating new processes as needed, and partnering with the compliance team to monitor compliance going forward. The policy and procedure revisions will be implemented by the end of the fourth quarter of 2025. Staff will receive training by the first quarter of 2026, and after the training rollout, we will begin internal audits to ensure successful training, implementation and compliance with the new policies and procedures. Name(s) of contact person(s) responsible for corrective action – Alison Spens, Senior Director of Project Management and Procurement Anticipated completion date – August 15, 2025

View Audit 366335 Questioned Costs: $1

Finding 1153080 (2024-011)

Material Weakness 2024

Milwaukee Public Schools

WI

Questioned Costs Subrecipient Monitoring Cash Management

Finding 2024-011 – Material Weakness – Reporting Condition In 22 of the 25 providers tested, there were issues related to incorrectly reporting the provider’s salaries and benefits in the quarterly cost reports. • In quarters ended December 2022 and March 2023 there were 21 instances where the provi...

Finding 2024-011 – Material Weakness – Reporting Condition In 22 of the 25 providers tested, there were issues related to incorrectly reporting the provider’s salaries and benefits in the quarterly cost reports. • In quarters ended December 2022 and March 2023 there were 21 instances where the providers’ salaries and benefits were not reported even though they worked providing services to eligible students. • In quarters ended March 2023 and June 2023 there were eight instances where the providers’ salaries and benefits were overstated when compared to the District’s payroll records. Seven of the eight individuals were included in the 21 instances above that were not reported in the quarters ended December 2022 and March 2023. Corrective Action Plan Central office will be improving processes and procedures to ensure that teachers are reminded to enter their hours worked on a regular basis. Controls will be implemented for timely reviews to ensure completeness and accuracy. Training of key staff on an annual or semi-annual basis is key. It is the intent of the Office of Finance to create and implement a robust training plan in place for the summer of 2026. Name(s) of Contact Person(s) Responsible for Corrective Action: Chief Financial Officer, Central Office leadership Anticipated Completion: 06.30.26

View Audit 366326 Questioned Costs: $1

Finding 1153079 (2024-010)

Material Weakness 2024

Milwaukee Public Schools

WI

Questioned Costs Allowable Costs / Cost Principles § 200.303 § 200.403 § 200.430

Finding 2024-010 – Material Weakness – Allowable Costs/Cost Principles Condition The District supports time charged to federal awards via semi-annual certifications which are approved by the grant administrator or the building principal. In order for a cost to be supported at the time of final reimb...

Finding 2024-010 – Material Weakness – Allowable Costs/Cost Principles Condition The District supports time charged to federal awards via semi-annual certifications which are approved by the grant administrator or the building principal. In order for a cost to be supported at the time of final reimbursement, the semi-annual certifications should be approved by the grant administrator or the building principal. Title I Grants to Local Educational Agencies (ALN 84.010) The final reimbursement claim for the Title I Grants to Local Educational Agencies (Title I) program were due to Wisconsin Department of Public Instruction (DPI) on September 30, 2024; however, the final reimbursement claim for the Part A award was not submitted to DPI until November 18, 2024, and the CSI award was not submitted to DPI until October 1, 2024, due to an extension. Five of the 40 individuals sampled had their semi-annual certifications not approved timely and were approved after the due date of the final reimbursement claim, but before the date of the actual submission of the final reimbursement claim. An additional two individuals of the 40 sampled had their semi-annual certifications approved after the final reimbursement claims were submitted. Upon further review of all the spring semi-annual certifications for the Title I awards, there were an additional 50 individuals that had their semi-annual certifications approved by the principal after the due date of the final reimbursement claim but before the submission of the final reimbursement. Additionally, nine individuals had their semi-annual certifications approved after the final reimbursement date of the Part A award and another 59 individuals from Part A did not have their semi-annual certifications approved at all. Head Start Cluster (ALN 93.600) The final reimbursement claim for the program was submitted to the Federal agency on November 22, 2024. Four of the 40 individuals sampled had their semi-annual certifications approved by the Head Start administrator after the submission date of the final reimbursement claims. Upon further review of the all the spring semi-annual certifications, there was an additional individual that had their semi-annual certifications approved by the principal after the due date of the final reimbursement claim and another four individuals that did not have their semi-annual certifications approved at all. The samples were not statistically valid. Corrective Action Plan The Office of Finance agrees that it is important that certifications be completed in a timely manner and award reimbursements are submitted within the deadlines. The Office of Finance and the District as a whole is working on improving its internal controls system wide. We are committed to developing sound processes and procedures that are in full compliance with federal and state regulations. An example of a process improvement is to send out reminders on a regular schedule to school leaders and central office employees for programmatic compliance. These activities will be completed in advance of due dates going forward to ensure timely submission of grant claim reimbursements. Annual training for school leaders and central office staff is also part of the process improvement plan underway. Name(s) of Contact Person(s) Responsible for Corrective Action: Chief Financial Officer, State and Federal Programs Director, Comptroller, Grant Accounting Manager Anticipated Completion: 06.30.2026

View Audit 366326 Questioned Costs: $1

Finding 1152911 (2024-003)

Material Weakness 2024

Prime Healthcare Foundation, Inc. and Subsidiaries

CA

Questioned Costs Procurement, Suspension & Debarment § 200.214 § 200.303 § 200.317 § 200.318 § 200.319

We agree with the finding that internal controls were not sufficient to maintain compliance with federal procurement standards under Title 2, Subtitle A, Chapter II, Part 200, Subpart D, 200.318 to 200.327 for a non-federal entity. However, the funds were expended for the intended purpose of the fed...

We agree with the finding that internal controls were not sufficient to maintain compliance with federal procurement standards under Title 2, Subtitle A, Chapter II, Part 200, Subpart D, 200.318 to 200.327 for a non-federal entity. However, the funds were expended for the intended purpose of the federal award. The Company is committed to implementing internal controls to ensure procurement related to federal awards follow 2 CFR section 200.318 to 200.327. The Company will update the procurement policy to ensure it complies with the requirements of 2 CFR section 200.318 through 200.327, that includes the written standards of conduct covering conflicts of interest, governing the actions of its employees who select, award and administer procurement contracts. This policy will include procedures to ensure proper procurement for small purchases to ensure sufficient price quotations are obtained from the required number of qualified sources, proper sealed bids or proposals are obtained through public advertising, an appropriate cost or price analysis is performed for procurement actions exceeding the simplified acquisition threshold, documentation is retained, and proper oversight is exercised to demonstrate compliance with 2 CFR section 200.318 through 200.327. While the Company did not perform a check of each vendor against the SAM Exclusions prior to selecting a vendor, the Company has procedures in place to ensure the vendors are approved by Corporate purchasing and in good standing, which limits the risk of conflict of interest between employees and vendors, and contracting with a vendor who is suspended or debarred from federal related contracting. Further, the Company confirmed the vendors that were contracted with were not included on the SAM Exclusions listing. Contact Person Michael Davis, Chief Financial Officer of Southern Regional Hospital Expected completion date: The procurement policy will be updated by September 30, 2025, and training will be provided to all employees who are relevant to the procurement process of federal contracts by December 31, 2025.

View Audit 366228 Questioned Costs: $1

Finding 1152910 (2024-002)

Material Weakness 2024

Prime Healthcare Foundation, Inc. and Subsidiaries

CA

Questioned Costs Cash Management Subrecipient Monitoring § 200.303 § 200.305

The Company acknowledges non-compliance with 2 CFR § 200.305 that the entity must minimize the time elapsing between the transfer of funds from the U.S. Treasury or the pass-through entity and the disbursement of funds by the recipient or subrecipient. However, the questioned costs that were transfe...

The Company acknowledges non-compliance with 2 CFR § 200.305 that the entity must minimize the time elapsing between the transfer of funds from the U.S. Treasury or the pass-through entity and the disbursement of funds by the recipient or subrecipient. However, the questioned costs that were transferred in advance were ultimately deemed reasonable because they were disbursed during the grant period for allowable costs as part of the federal contract awarded. The Company will ensure a proper understanding of the compliance requirements for all federal contracts prior to requesting funds and will ensure funds transferred are compliant with the requirement that the Company minimize the time elapsed from the time of transfer and the disbursement of funds in accordance with the grant terms. Contact Person Michael Davis, Chief Financial Officer of Southern Regional Hospital Expected completion date: This will be implemented on new federal contracts awarded subsequent to August 28, 2025.

View Audit 366228 Questioned Costs: $1

Finding 1152909 (2024-001)

Material Weakness 2024

Prime Healthcare Foundation, Inc. and Subsidiaries

CA

Questioned Costs Procurement, Suspension & Debarment § 200.214 § 200.303 § 200.317 § 200.318 § 200.319

We agree with the finding that internal controls were not sufficient to maintain compliance with federal procurement standards under Title 2, Subtitle A, Chapter II, Part 200, Subpart D, 200.318 to 200.327 for a non-federal entity. However, the funds were expended for the intended purpose of the fed...

We agree with the finding that internal controls were not sufficient to maintain compliance with federal procurement standards under Title 2, Subtitle A, Chapter II, Part 200, Subpart D, 200.318 to 200.327 for a non-federal entity. However, the funds were expended for the intended purpose of the federal award. The Company is committed to implementing internal controls to ensure procurement related to federal awards follow 2 CFR section 200.318 to 200.327. The Company will update the procurement policy to ensure it complies with the requirements of 2 CFR section 200.318 through 200.327, that includes the written standards of conduct covering conflicts of interest, governing the actions of its employees who select, award and administer procurement contracts. This policy will include procedures to ensure proper procurement for small purchases to ensure sufficient price quotations are obtained from the required number of qualified sources, proper sealed bids or proposals are obtained through public advertising, an appropriate cost or price analysis is performed for procurement actions exceeding the simplified acquisition threshold, documentation is retained, and proper oversight is exercised to demonstrate compliance with 2 CFR section 200.318 through 200.327. While the Company did not perform a check of each vendor against the SAM Exclusions prior to selecting a vendor, the Company has procedures in place to ensure the vendors are approved by Corporate purchasing and in good standing, which limits the risk of conflict of interest between employees and vendors, and contracting with a vendor who is suspended or debarred from federal related contracting. Further, the Company confirmed the vendors that were contracted with were not included on the SAM Exclusions listing. Contact Person Michael Davis, Chief Financial Officer of Southern Regional Hospital Expected completion date: The procurement policy will be updated by September 30, 2025, and training will be provided to all employees who are relevant to the procurement process of federal contracts by December 31, 2025.

View Audit 366228 Questioned Costs: $1

Finding 576234 (2024-003)

Material Weakness 2024

Opening Doors, Inc.

CA

Questioned Costs Allowable Costs / Cost Principles § 200.403

Auditor's Recommendation: Strengthen policies and procedures to ensure proper authorization and documentation of payroll changes. Management Response: While ODI does not disagree with the audit finding, the Agency does clarify the context of the finding. ODI has a policy for setting, processing, an...

Auditor's Recommendation: Strengthen policies and procedures to ensure proper authorization and documentation of payroll changes. Management Response: While ODI does not disagree with the audit finding, the Agency does clarify the context of the finding. ODI has a policy for setting, processing, and approving staff wage rates as follows: Sr. HR Manager or Payroll Assistant process new hires and sets them up in the timekeeping system (NOVAtime). Any salary changes are also processed by DHR (may also be processed by supervisor) on a change status form and approved by CEO. The auditors performed tests to determine if the CEO approved the change status form. As mentioned in the audit finding, of the audit sample of employees tested in the 16 pay periods from more than 250 pay periods, six employees did not have their change of status forms signed by the CEO. Audit requirements for federal awards require the auditors to assign a value to specific instances of noncompliance as “known questioned costs”. The known questioned costs for this finding are $14,112 and are comprised of the transactions the auditors tested for allocated wages of the six employees to specific grants. The auditors further calculate “likely questioned costs” by extrapolating the auditor’s sample across the entire population from which the sample is drawn and is $553,607. Is it important to note that the “known questioned costs” and the “likely questioned costs” are not calculations of errors or misstatement in the financial statements. All six employees' pay rates were processed correctly despite missing CEO signatures on the change status forms. Corrective Action: -Conduct comprehensive internal audit of all current staff to verify proper processing and CEO approval of change status forms -Implement dual-filing system: approved forms will be maintained in both personnel folders and financial accounting folders to verify that approved pay rates are used when charging labor costs to any grant. Responsible Personnel: Karen Dickson, Sr. Finance Director; Lisa Tucker, Sr. HR Manager Implementation Date: Immediate implementation

View Audit 366160 Questioned Costs: $1

Finding 576195 (2024-001)

Significant Deficiency 2024

Medical Teams International

OR

Questioned Costs Allowable Costs / Cost Principles Period of Performance § 200.308 § 200.309 § 200.403

USAID Foreign Assistance for Programs Oversees – Assistance Listing No. 98.001 Recommendation: Management should review its existing control structure and ensure that there are adequate processes and controls to ensure only expenditures incurred during the period of performance are booked to Federa...

USAID Foreign Assistance for Programs Oversees – Assistance Listing No. 98.001 Recommendation: Management should review its existing control structure and ensure that there are adequate processes and controls to ensure only expenditures incurred during the period of performance are booked to Federal programs and that the correct program codes are charged, based on the underlying supporting documentation. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Training on the Federal awards regulations to be provided to the country office. In addition, adjustments will be made to the review structure of expenditure to ensure full compliance. Follow up of the implementation status will be carried out by HQ finance. Name(s) of the contact person(s) responsible for corrective action: Florence Ruona Planned completion date for corrective action plan: September 30, 2025

View Audit 366111 Questioned Costs: $1

Finding 576183 (2024-005)

Significant Deficiency 2024

The Young Men's Christian Association of Metropolitan Denver

CO

Questioned Costs Allowable Costs / Cost Principles

Controls over Payroll charged to Federal Awards Condition: The YMCA is responsible for ensuring that support for all federal expenditures including payroll charged to federal grants is properly maintained. Criteria: Internal controls need to be sufficient to ensure that support for federal expendit...

Controls over Payroll charged to Federal Awards Condition: The YMCA is responsible for ensuring that support for all federal expenditures including payroll charged to federal grants is properly maintained. Criteria: Internal controls need to be sufficient to ensure that support for federal expenditures is available, including payroll records that agree to amounts charged to federal grants. Cause: The YMCA experienced turnover in the accounting department. Records were not maintained to support payroll costs charged to federal grants. Effect: When adequate support is not obtained and used to support the amount charged to the federal program or support by an after-the-fact review, there is a risk that unsupported or inaccurate costs are being charged to the federal program. Recommendation: We recommend proper control activities should be implemented to allow for a consistent, accurate, and allowable method to support distribution of personnel charges to federal programs. If management elects to continue to allocate personnel charged based on a budget estimate, the after-the-fact review should be properly documented. Views of Responsible Officials and Planned Corrective Action: The CFO, along with the financial team will impelment a process to perform timely review of salary expense charged to federal awards, and retain records by pay period as support for expenditures charged to federal awards.

View Audit 366102 Questioned Costs: $1

Finding 576175 (2024-003)

Significant Deficiency 2024

Moses Lake School District No. 161

WA

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring

Finding ref number: 2024-003 Finding caption: The District did not have adequate internal controls for ensuring compliance with time-and-effort requirements. Name, address, and telephone of District contact person: Ruby Perez 1620 S. Pioneer Way Moses Lake, WA 98837 (509) 766-2650 Corrective action ...

Finding ref number: 2024-003 Finding caption: The District did not have adequate internal controls for ensuring compliance with time-and-effort requirements. Name, address, and telephone of District contact person: Ruby Perez 1620 S. Pioneer Way Moses Lake, WA 98837 (509) 766-2650 Corrective action the auditee plans to take in response to the finding: The District acknowledges this finding and has taken steps to address all time-and-effort documentation issues. New procedures are now in place, including formal time-and-effort tracking using the appropriate method—semiannual or monthly—based on program guidelines and funding structure. The District has also implemented a policy that requires all journal entries to include supporting documentation. Each journal entry is reviewed and approved by multiple staff, including Business Office staff and program directors, before posting. These safeguards will ensure accountability, prevent future exceptions, and maintain public trust. Anticipated date to complete the corrective action: August 31, 2025

View Audit 366085 Questioned Costs: $1

Finding 576172 (2024-001)

Material Weakness 2024

Moses Lake School District No. 161

WA

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring

Finding ref number: 2024-001 Finding caption: The District did not have adequate internal controls and did not comply with time-and-effort requirements. Name, address, and telephone of District contact person: Ruby Perez 1620 S. Pioneer Way Moses Lake, WA 98837 (509) 766-2650 Corrective action the a...

Finding ref number: 2024-001 Finding caption: The District did not have adequate internal controls and did not comply with time-and-effort requirements. Name, address, and telephone of District contact person: Ruby Perez 1620 S. Pioneer Way Moses Lake, WA 98837 (509) 766-2650 Corrective action the auditee plans to take in response to the finding: The District acknowledges the finding and has implemented new procedures to ensure strong internal controls over time-and-effort documentation. This issue primarily occurred during a period of staff turnover. The District has since hired experienced personnel who are now overseeing federal program compliance. We have implemented a compliant time-and-effort tracking system consistent with OSPI and federal requirements. Documentation—whether semiannual certifications or monthly reports, as applicable—is collected, reviewed, and retained in accordance with the type of funding allocation. All documentation is reviewed by both the Business Office and program administrators to ensure accuracy. Monthly monitoring and required training for relevant staff are now embedded into our internal processes. The district is committed to ensuring accuracy and accountability in all federally funded programs. Anticipated date to complete the corrective action: August 31, 2025

View Audit 366085 Questioned Costs: $1

Finding 576168 (2024-002)

Material Weakness 2024

Moses Lake School District No. 161

WA

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring

Finding ref number: 2024-002 Finding caption: The District did not have adequate internal controls and did not comply with time-and-effort and private school requirements. Name, address, and telephone of District contact person: Ruby Perez 1620 S. Pioneer Way Moses Lake, WA 98837 (509) 766-2650 Corr...

Finding ref number: 2024-002 Finding caption: The District did not have adequate internal controls and did not comply with time-and-effort and private school requirements. Name, address, and telephone of District contact person: Ruby Perez 1620 S. Pioneer Way Moses Lake, WA 98837 (509) 766-2650 Corrective action the auditee plans to take in response to the finding: The District concurs with the finding. In response, the District has established a regularly updated list of private schools within our boundaries. We will be proactively reaching out to these schools each year to determine interest and eligibility for Title I services, and are documenting all correspondence. In addition, we have strengthened time-and-effort documentation procedures as described in 2024-001. Our new internal controls include multilayered reviews and program director oversight to ensure timely, complete compliance. The District is committed to equity in services and transparency in all federal programming. Anticipated date to complete the corrective action: August 31, 2025

View Audit 366085 Questioned Costs: $1

Finding 576109 (2024-001)

Significant Deficiency 2024

Cote Brilliante Presbyterian Church Housing Corporation

MO

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.302 § 200.403

The Project acknowledges the finding regarding the interproject payable. Management has developed the following corrective action plan: Repayment of Payable - The outstanding payable balance ot the related HUD project will be repaid in full by September 30, 2025. Documentation of repayment will be ...

The Project acknowledges the finding regarding the interproject payable. Management has developed the following corrective action plan: Repayment of Payable - The outstanding payable balance ot the related HUD project will be repaid in full by September 30, 2025. Documentation of repayment will be maintained and made available for audit verification. Elimination of Interproject Borrowing - Effective immediately, the Project has ceased the practice of borrowing funds from other HUD-assisted projects. Future interproject transactions will not be initiated unless expressly authorized by HUD. Polidy Development and Implementation - The Project will adopt a written policy governing cash management and interproject transactions by September 30, 2025. The policy will prohibit interproject loans without HUD approval and establish procedures for timely monitoring of accounts payable. Training and Oversight - Project staff responsible for financial reporting will receive training on HUD requirements and Uniform Guidance within 120 days. In addition, management will review monthly financial reports to ensure no interproject balances exist.

View Audit 366023 Questioned Costs: $1

Finding 576055 (2024-003)

Material Weakness 2024

Public Defender Association

WA

Questioned Costs Procurement, Suspension & Debarment § 200.318 § 200.320 § 200.326

Material weakness in internal control over compliance with procurement procedures meeting the requirements of 2 CFR Part 200. Management Response: We acknowledge the finding and provide the following corrective action plan. Corrective Action Plan: PDA adopted a new, updated procurement policy in Oct...

Material weakness in internal control over compliance with procurement procedures meeting the requirements of 2 CFR Part 200. Management Response: We acknowledge the finding and provide the following corrective action plan. Corrective Action Plan: PDA adopted a new, updated procurement policy in October 2024. PDA worked with Clark Nuber to develop this policy. Anticipated Completion Date: October of 2024 Name(s) of the Contact Person(s) Responsible for Corrective Action: Barbara Donohue, Director of Finance Lisa Daugaard, Tara Moss, and Fe LopezGaetke Co-Executive Directors

View Audit 365948 Questioned Costs: $1

Finding 575995 (2024-002)

Significant Deficiency 2024

Young Women's Christian Association of Northeast Kansas

KS

Questioned Costs Subrecipient Monitoring Significant Deficiency § 200.303

Contact person responsible for correction action – Linda Aziz, Chief Financial Officer Anticipated completion date – August 29, 2025 Corrective action YWCA of Northeast Kansas agrees with the finding. An addendum to the Grant Oversight Policy will require quarterly reviews of grant expenditures. The...

Contact person responsible for correction action – Linda Aziz, Chief Financial Officer Anticipated completion date – August 29, 2025 Corrective action YWCA of Northeast Kansas agrees with the finding. An addendum to the Grant Oversight Policy will require quarterly reviews of grant expenditures. The CFO will ensure expenditures are properly coded and reported in the correct period, in collaboration with accounting partners. Discrepancies will be promptly addressed.

View Audit 365889 Questioned Costs: $1

Finding 575974 (2024-001)

None 2024

The Indianapolis Foundation

IN

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring

Corrective Action Taken: Upon being notified of the discrepancies, The Indianapolis Foundation notified the City of Indianapolis. A forensic financial review was conducted to verify the questioned costs and all findings were shared with relevant stakeholders. The funds were repaid by the subrecip...

Corrective Action Taken: Upon being notified of the discrepancies, The Indianapolis Foundation notified the City of Indianapolis. A forensic financial review was conducted to verify the questioned costs and all findings were shared with relevant stakeholders. The funds were repaid by the subrecipient to The Indianapolis Foundation on December 23, 2024, and the unspent remaining grant funds were subsequently returned as well. The Indianapolis Foundation and subrecipient took decisive action to address the malfeasance, recover funds and prevent future occurences. Individual Responsible: Lorenzo Esters, President - The Indianapolis Foundation Anticipated Date of Completion: December 31, 2024

View Audit 365878 Questioned Costs: $1

Finding 575951 (2024-001)

Significant Deficiency 2024

Hazelden Betty Ford Foundation and Subsidiaries

MN

Questioned Costs Student Financial Aid Matching / Level of Effort / Earmarking

Finding 2024-001: Non-compliance with Special Tests and Provisions: Disbursements Condition For 3 of 25 students selected for testing, the disbursement dates did not agree between the student’s institutional account and the data reported to COD. Each student had disbursements that were later partial...

Finding 2024-001: Non-compliance with Special Tests and Provisions: Disbursements Condition For 3 of 25 students selected for testing, the disbursement dates did not agree between the student’s institutional account and the data reported to COD. Each student had disbursements that were later partially or fully refunded. The sample was not a statistically valid sample. Recommendation It is recommended that policies, procedures and effective controls are put in place to verify that the disbursement dates for federal funds are matching between the student account detail and the COD system. Corrective Action The Foundation will ensure that policies, procedures and effective controls are in place to verify the matching of the disbursement dates for federal funds between the student account detail and the COD system. Anticipated completion date of implementing the corrective action plan will be immediate.

View Audit 365871 Questioned Costs: $1

Finding 575843 (2024-001)

Significant Deficiency 2024

Wilkinson County Board of Education

GA

Questioned Costs Procurement, Suspension & Debarment Allowable Costs / Cost Principles § 200.303 § 200.318 § 200.320 § 200.403

FA 2024-001 Strengthen Controls over Expenditures Compliance Requirement: Activities Allowed or Unallowed Allowable Costs/Cost Principle Procurement and Suspension and Debarment Internal Control Impact: Significant Deficiency Compliance Impact: Nonmaterial Noncompliance Federal Awarding Agency: ...

FA 2024-001 Strengthen Controls over Expenditures Compliance Requirement: Activities Allowed or Unallowed Allowable Costs/Cost Principle Procurement and Suspension and Debarment Internal Control Impact: Significant Deficiency Compliance Impact: Nonmaterial Noncompliance Federal Awarding Agency: U.S. Department of Agriculture Pass-Through Entity: Georgia Department of Education Assistance Listing Number and Title: 10.553 - School Breakfast Program 10.555 - National School Lunch Program Federal Award Number: 245GA324N1199 (Year: 2024), 235GA32N1099 (Year: 2023) Questioned Costs: $7,388 Description: A review of expenditures charged to the Child Nutrition Cluster revealed that the School District's internal control procedures were not operating appropriately to ensure that expenditures were reviewed and approved and that the School District's procurement and suspension and debarment procedures were followed. Corrective Action Plans: The following corrective actions will be implemented by the School District: 1. Implement Strengthened Pre-Approval and Documentation Procedures: a. All Child Nutrition purchases will require a completed purchase request form that clearly identifies the funding source, purpose, and allowability under federal guidelines. b. Documentation (invoices, quotes, purchase orders) must be attached and reviewed by the School Nutrition Director and CFO or designee before approval. 2. Enhance Segregation of Duties: a. The individual initiating a purchase or expenditure will not be the same person approving or reconciling it. b. Monthly expenditure reviews will be performed jointly by the Finance Department and School Nutrition leadership to ensure accuracy and compliance. 3. Establish an Internal Monitoring Checklist: a. The School Nutrition Department will implement a monthly internal monitoring checklist that includes documentation review, reconciliation of expenditures, and verification of procurement compliance. The CFO will meet with the Nutrition director monthly. 4. Update Written Polices and Procedures: a. The district's Financial Procedures Manual and the School Nutrition Operations Manual will be updated by December 2025 to reflect all new internal control steps and approval requirements specific to federal expenditures. Estimated Completion Date: June 30, 2026 Contact Person: Tiffany Crockett, Chief Financial Officer Telephone: 478-946-5521 Email: tiffany.crockett@wilkinson.k12.ga.us

View Audit 365811 Questioned Costs: $1

Finding 575727 (2024-002)

Material Weakness 2024

Parkview Services

WA

Questioned Costs Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking

Management agrees with this finding. Parkview Services will adopt and implement a written policy by October 31st, 2025 that strictly prohibits the use of federal funds for any non-program purpose, including temporary inter-fund loans. The policy will require that all federal program cash remain in t...

Management agrees with this finding. Parkview Services will adopt and implement a written policy by October 31st, 2025 that strictly prohibits the use of federal funds for any non-program purpose, including temporary inter-fund loans. The policy will require that all federal program cash remain in the designated account until disbursed for documented, allowable purposes in accordance with federal regulations and grant agreements. Any transfers from the federal account will require pre-approval from the Finance Director, written justification, and documentation that the expenditure is allowable under the grant. The organization will also incorporate additional cash-flow monitoring procedures to prevent situations where federal funds might be considered for operational use. To address related reconciliation issues, the bank reconciliation process will include a review of the federal account by the Board Vice President or Treasurer within 30 days of month-end, starting with the September 30th reconciliation. This reviewer will verify that all transactions are allowable, properly documented, and recorded in the correct period. Any discrepancies will be immediately investigated and resolved.

View Audit 365724 Questioned Costs: $1

Corrective Action Plans

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