Corrective Action Plans

Finding 569242 (2024-002)

Material Weakness 2024

McLeod Health

SC

Questioned Costs Cash Management Material Weakness § 200.302 § 200.305

Condition: The Organization did not have a formal cash management policy in place for the period under audit. Planned Corrective Action: The Organization implemented a Federal Awards Administration Policy which includes a formal cash management policy in February 2025. Contact person responsible f...

Condition: The Organization did not have a formal cash management policy in place for the period under audit. Planned Corrective Action: The Organization implemented a Federal Awards Administration Policy which includes a formal cash management policy in February 2025. Contact person responsible for corrective action: Valeria Watson Anticipated Completion Date: February 2025

View Audit 360820

Finding 569241 (2024-001)

Material Weakness 2024

McLeod Health

SC

Reporting Questioned Costs Material Weakness

Condition: The Organization had a control to review and certify the Financial Request for Payment; however, the control was ineffective and resulted in untimely submission of the request to the awarding agency. Planned Corrective Action: The Organization will revise its internal process to include a...

Condition: The Organization had a control to review and certify the Financial Request for Payment; however, the control was ineffective and resulted in untimely submission of the request to the awarding agency. Planned Corrective Action: The Organization will revise its internal process to include a dual-review system. Two designated staff members will now be cross-trained and authorized to review and certify Financial Requests for Payment to ensure timeliness. A formal submission calendar will be developed, including internal deadlines that precede the agency's due dates by a minimum of five business days. Contact person responsible for corrective action: Jennifer Turner/Kristen Miller, Nurse Family Partnership Anticipated Completion Date: August 2025

View Audit 360820

Finding 569192 (2024-002)

Material Weakness 2024

Deep Fork Community Action Foundation, Inc.

OK

Subrecipient Monitoring Questioned Costs Cash Management

The Organization feels that it made a good faith attempt to correct the deficiencies noted by the State Agency. On November 8, 2024, the Organization received notification that the State agency proposed to terminate the Organization’s agreement to participate in CACFP. The Organization decided not t...

The Organization feels that it made a good faith attempt to correct the deficiencies noted by the State Agency. On November 8, 2024, the Organization received notification that the State agency proposed to terminate the Organization’s agreement to participate in CACFP. The Organization decided not to appeal the decision. Effective December 1, 2024, the Organization ended the CACFP program and notified the day care homes that they would need to find a new sponsor.

View Audit 360812

Finding 569191 (2024-003)

Significant Deficiency 2024

Town of Huntington Housing Authority

NY

HUD Housing Programs Questioned Costs Subrecipient Monitoring

Name of Auditee: Town of Huntington Housing Authority Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: September 30, 2024 CAP Prepared by: Steve Nakano, Executive Director Phone: (631) 427-6220 (A) Current Finding on the Schedule of Findings and Questioned Costs (3) Finding 20...

Name of Auditee: Town of Huntington Housing Authority Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: September 30, 2024 CAP Prepared by: Steve Nakano, Executive Director Phone: (631) 427-6220 (A) Current Finding on the Schedule of Findings and Questioned Costs (3) Finding 2024-003 (a) Comments on the finding and recommendation - The Authority agrees with the finding. The Authority also agrees with the recommendations, please see below for action taken. (b) Action taken - The Authority will immediately initiate the closeout process for the two CFP grants by preparing and submitting all required closeout documentation to HUD. This includes completing the AMCC, certifying expenditures, and submitting necessary reports through HUD’s electronic systems, as outlined in the Capital Fund Guidebook. (c) Planned implementation date of corrective action - Completed by September 30, 2025.

View Audit 360810

Finding 569190 (2024-002)

Material Weakness 2024

Town of Huntington Housing Authority

NY

Questioned Costs HUD Housing Programs Subrecipient Monitoring § 200.303

Name of Auditee: Town of Huntington Housing Authority Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: September 30, 2024 CAP Prepared by: Steve Nakano, Executive Director Phone: (631) 427-6220 (A) Current Finding on the Schedule of Findings and Questioned Costs (2) Finding 20...

Name of Auditee: Town of Huntington Housing Authority Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: September 30, 2024 CAP Prepared by: Steve Nakano, Executive Director Phone: (631) 427-6220 (A) Current Finding on the Schedule of Findings and Questioned Costs (2) Finding 2024-002 (a) Comments on the finding and recommendation - The Authority agrees with the finding. The Authority also agrees with the recommendations, please see below for action taken. (b) Action taken - The Authority will conduct a thorough review of all tenant files to identify and resolve missing documentation, including signed applications, lease agreements, proof of citizenship or eligible immigration status, independent income verification, HUD forms (50058 and 9886), rent reasonableness documentation, and HQS inspection records. Staff will work to obtain missing documents from tenants, landlords, or other necessary parties. A standardized checklist should be used to ensure all required items are present in each file moving forward. (c) Planned implementation date of corrective action - Completed by September 30, 2025.

View Audit 360810 Questioned Costs: $1

Finding 569181 (2024-003)

Significant Deficiency 2024

Hebrew Academy Community School, INC

FL

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

Management of the School agrees with the findings and will coordinate with the State of Florida, Department of Agriculture the repayment of the contractually non-reimbursable use of funds.

View Audit 360775 Questioned Costs: $1

Finding 569176 (2024-004)

Material Weakness 2024

Schoolcraft County

MI

Allowable Costs / Cost Principles Cash Management Questioned Costs § 200.303

2024-004: Material Weakness and Noncompliance – Written Policies Required by the Uniform Guidance Statement of Condition/Criteria: The 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) e...

2024-004: Material Weakness and Noncompliance – Written Policies Required by the Uniform Guidance Statement of Condition/Criteria: The 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.

View Audit 360756

Finding 569146 (2024-004)

Material Weakness 2024

Mobridge Regional Hospital

SD

Special Tests & Provisions Questioned Costs Subrecipient Monitoring § 200.303

Federal Agency Name: Department of Agriculture Program Name: Communities 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 the funds from the cash sweep general fund to a separa...

Federal Agency Name: Department of Agriculture Program Name: Communities 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 the funds from the cash sweep general fund to a separate bookkeeping account. Management did not track the funds in a separate bank or bookkeeping account throughout the year. 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 establish a separate bookkeeping account in the general ledger to establish the correct reserve amount of cash held within its general operating bank account. The separate bookkeeping account will be utilized throughout the year to ensure the reserve requirement is met. The reserve account will be part of total cash in the bank to maximize interest earned on the reserve balance. Anticipated Completion Date: October 1, 2024.

View Audit 360727

Finding 569138 (2024-001)

Significant Deficiency 2024

City of Plymouth

MN

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

SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE – U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT – HOUSING VOUCHER CLUSTER – FEDERAL ALN 14.871 AND 14.879 2024-001 Internal Control Over Compliance With Special Tests and Provisions Requirements Summary of Finding The City of Plymouth...

SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE – U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT – HOUSING VOUCHER CLUSTER – FEDERAL ALN 14.871 AND 14.879 2024-001 Internal Control Over Compliance With Special Tests and Provisions Requirements Summary of Finding The City of Plymouth, Minnesota (the City) did not have sufficient controls in place with the Housing Voucher Cluster federal programs to assure compliance with federal special tests and provisions requirements. The City did not have proper controls in place to ensure prospective tenants added to the voucher waiting list were properly ranked based on the Housing and Redevelopment Authority approved criteria. Corrective Action Plan Actions Planned – The City has implemented new controls and procedures in 2025 to address this internal control finding to comply with this finding. The City will review new controls to ensure that prospective tenants are properly ranked on the waiting list in accordance with the Housing and Redevelopment Authority policy in the future. Official Responsible – The City’s Housing and Economic Development Manager. Planned Completion Date – December 31, 2025. Disagreement With or Explanation of Finding – The City agrees with this finding. Plan to Monitor – The City’s Finance Director, Andrea Rich, will ensure the new process and procedures implemented improve internal controls and procedures in this area to ensure future federal grant compliance.

View Audit 360720

Finding 569130 (2024-001)

Significant Deficiency 2024

Housing Authoirty of the City of Salem

OR

Questioned Costs Special Tests & Provisions HUD Housing Programs

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Catalog Numbers: 14.871. 14.879, and 14.EHV Noncompliance – N. Special Tests and Provisions - Housing Quality Standards Non Compliance Material to the Financial Statements: No Sig...

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Catalog Numbers: 14.871. 14.879, and 14.EHV Noncompliance – N. Special Tests and Provisions - Housing Quality Standards Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Criteria: HQS Inspections. Per the Authority's HCV Admin Plan, the PHA must inspect the unit leased to a family biennially in order to determine if the unit meets HQS standards, and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). These inspection reports are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority’s files and on discussion with management there were inspection reports that were not completed timely. Context: Of a sample size of thirty-nine (39) units, five (5) units did not have biennial HQS inspections performed timely. Our sample size is statistically valid. Known Questioned Costs: $4,214 Cause: There is a significant deficiency in internal controls over the compliance for the special tests and provisions type of compliance related to HQS inspections. The Authority has not properly performed HQS inspections in compliance with program requirements. Effect: The Housing Voucher Cluster is in non-compliance with the special tests and provisions type of compliance related to HQS inspections. Recommendation: We recommend the Authority design and implement a corrective action plan that will assure compliance with the Uniform Guidance and the compliance supplement. Authority Response: The Authority accepts the recommendation of the auditor and will make the necessary changes to its inspection process to ensure enforcement of Housing Quality Standards (or any subsequent replacement. Lynette Brown, Section 8 Manager, is responsible for implementing this corrective action by September 30, 2025.

View Audit 360717 Questioned Costs: $1

Finding 569125 (2024-003)

Significant Deficiency 2024

Housing Authority of the City and County of San Francisco

CA

HUD Housing Programs Questioned Costs Special Tests & Provisions

Reference Number: 2024-003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Choice Cluster Federal Catalog Number: 14.871 and 14.879 Federal Grant Number: Not Applicable Category of Finding: Special Tests and Provisions (Housing Quality Standards Inspec...

Reference Number: 2024-003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Choice Cluster Federal Catalog Number: 14.871 and 14.879 Federal Grant Number: Not Applicable Category of Finding: Special Tests and Provisions (Housing Quality Standards Inspections) Classification of Finding: Significant Deficiency in Internal Control over Compliance Instance of Noncompliance Authority’s Response & Actions Taken The Authority has made considerable progress in addressing the backlog of annual inspections that resulted from restricted unit access and the temporary implementation of HUD waivers during the COVID-19 national pandemic. These necessary public health measures, while appropriate at the time, contributed to delays in fulfilling Housing Quality Standards (HQS) inspection requirements. The Authority acknowledges that additional progress is still needed and remains actively engaged with its third-party Housing Choice Voucher (HCV) contractors to ensure timely completion of all outstanding inspections. The Authority is fully committed to ensuring that all units under contract meet and exceed HUD’s standards for safe, decent, and sanitary housing, in accordance with HQS and the Authority’s Administrative Plan. All five annual inspections with exceptions noted during the audit were inspected after the required timeframes and ultimately passed inspection with the units determined to be in full compliance with HUD requirements. The Authority uses the Emphasys Elite software to check against HUD's PIH Information Center (PIC) system to identify units with outstanding Housing Quality Standards (HQS) Inspections. The Authority has scheduled HQS Inspections for the units identified to be out of compliance. Key strategies and controls in place are as follows: Project-Based Program: For the PBV program, the Authority has already implemented the following procedures to result in timely HQS inspections of all units. 1. Matching data between the Emphasys Elite system of records to ensure the most overdue inspections are scheduled. 2. A bulk inspection process was implemented effective November 1, 2024. Through this process, all units for a particular PBV site are scheduled for their annual inspections in the same month each year. This ensures that all units are inspected annually. The scheduling process includes: a. Posting the bulk inspection schedule on the website. This is an annual schedule which identifies properties, property management, and the month the project will be inspected. b. Providing notice to the applicable site owner/manager of the inspection date and the units to be inspected. The notice will include information on how to prepare for the inspection, a request to have site staff accompany the inspector, and a reminder to notify residents so access can be gained even if no one is home. c. Sending individual inspection notices to the owner and participant for each scheduled inspection. For the PBV portfolio, staff will work directly with property management and developers to ensure access to units is continuously granted. Upcoming bulk inspections are also discussed on calls with owners. This allows for increased planning and respect for noticing timelines. Tenant-Based Program: • Review the report of outstanding HQS Inspections on a weekly basis. • Schedule outstanding HQS Inspections in order of aging date. • Conduct HQS Inspections prior to the anniversary date of previously completed inspection. • Running a monthly report of failed inspections and comparing them with future scheduled inspections to ensure that a second inspection has been scheduled. • Running a monthly report to identify units with two failed inspections to ensure all have been abated correctly. • Implement weekly monitoring to ensure all units are properly abated and lifted timely when units pass inspections and contracts are properly terminated after being in abatement for 180 days without a cure. The Authority has worked with Emphasys to identify the best ways to sort aged HQS inspections due and generate/schedule in bulk, as well as maximize the Inspector’s workday by routing the tenantbased units in a way that flows in a clear and orderly manner. Similar to the handling of delinquent annual reexaminations, the Authority is checking the data in PIC with the system of records and processing 50058 corrections where inspections have been completed but rejected in PIC due to out of sequence effective dates and any other fatal errors that require corrective action. The procedures for the project-based and tenant-based programs are already in effect, and the backlog of inspections has been substantially reduced as illustrated by a reporting rate of 99% for SEMAP Indicator 12 annual HQS inspections as of May 31, 2025. Monthly performance reports are also reviewed by management to ensure inspection timeliness is maintained. Anticipated Implementation Date September 30, 2025 Name(s) and Title(s) of Contact Person(s) Responsible for Correction Action HCV Contractors Kendra Crawford, Director of Housing Operations

View Audit 360716

Finding 569121 (2024-001)

Significant Deficiency 2024

Nutrition, INC

IN

Internal Control / Segregation of Duties Questioned Costs

June 26, 2025 Nutrition, Inc. Audit performed by Pettit & Company, LLC 6249 South East Street, Suite E Indianapolis, IN 46227 Period covered by the audit October 1, 2023 through September 30, 2024 The findings from the September 30, 2024 schedule of findings and questioned costs are discussed below....

June 26, 2025 Nutrition, Inc. Audit performed by Pettit & Company, LLC 6249 South East Street, Suite E Indianapolis, IN 46227 Period covered by the audit October 1, 2023 through September 30, 2024 The findings from the September 30, 2024 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Finding No. 2024-1 Type of Finding: Significant Deficiency in Internal Control over Financial Reporting Statement of Condition: Condition: In order to comply with generally accepted accounting principles (GAAP) and Government Auditing Standards certain accounting an administrative responsibilities should be segregated. One person has access to all books and records. Due to the size of the Organization, proper segregation of duties cannot be achieved without the cost exceeding the benefit. Corrective Action Planned or Taken: Coming out of the pandemic impacted the ability to complete the segregation of duties process, due to the lack of staff. As a result, Nutrition is working to develop the processes that will help to implement the procedures that will segregate duties and will continue working with team members to implement processes to segregate duties moving forward. At this time, the development is on-oing and will take place when the business growth warrants and supports such an action. Presently, adding additional staff to provide another layer of preparation, review, and monitoring would outweigh the costs. Sudie Shaw-Price, Executive Director (317) 543-9452

View Audit 360715

Finding 569119 (2024-009)

Material Weakness 2024

Town of Greenwich, Connecticut

CT

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

2024-009 Material Weakness and Material Noncompliance - Procurement and Suspension and Debarment Audit Finding: The Town did not have documentation to support following their purchasing policy for two out of six selections. The Town did not have documentation to support verification that four vendor...

2024-009 Material Weakness and Material Noncompliance - Procurement and Suspension and Debarment Audit Finding: The Town did not have documentation to support following their purchasing policy for two out of six selections. The Town did not have documentation to support verification that four vendors were not excluded from federal contracts due to debarment or suspension. Corrective Action Taken: Procurement findings: 1. Performance Foodservice had two (2) invoices dated May 2023 (FY23) paid in FY24. For FY23 the BOE had a contract with Performance. The invoices were for prior year. No purchases were made in FY24, only payment from FY23 purchases. BOE believes the purchasing policy was followed. 2. Sardilli Produce, had 3 PO’s entered in FY24. One PO was for $80,000 for yearly invoices. 58 invoices were charged to PO. Average invoice total was $1,289. The approved PO did not follow purchasing policy. Suspension and Debarment addressed in 2024-005. Name and Phone # of Person Responsible for Implementation Mr. Peter Mynarski, Comptroller 203-622-2226

View Audit 360711 Questioned Costs: $1

Finding 569115 (2024-008)

Material Weakness 2024

Town of Greenwich, Connecticut

CT

Questioned Costs Material Weakness Reporting

2024-008 Material Weakness and Noncompliance, Reporting Audit Finding: The Town improperly included encumbrances in expenditures on one of four quarterly reports due to a lack of understanding of reporting requirements (ARPA). Corrective Action Taken: We agree with this finding and will not include ...

2024-008 Material Weakness and Noncompliance, Reporting Audit Finding: The Town improperly included encumbrances in expenditures on one of four quarterly reports due to a lack of understanding of reporting requirements (ARPA). Corrective Action Taken: We agree with this finding and will not include encumbrances in expenditures for these purposes going forward. Name and Phone # of Person Responsible for Implementation Mr. Peter Mynarski, Comptroller 203-622-2226

View Audit 360711

Finding 569111 (2024-006)

Material Weakness 2024

Town of Greenwich, Connecticut

CT

Questioned Costs Material Weakness Reporting

2024-006 Material Weakness, Reporting Audit Finding: Per terms and conditions of the award, Local Education Agencies (LEAs) must report annually on activities funded by the ESSER funds, and the Connecticut Department of Education utilizes the Electronic Grants Management System (eGMS) to collect thi...

2024-006 Material Weakness, Reporting Audit Finding: Per terms and conditions of the award, Local Education Agencies (LEAs) must report annually on activities funded by the ESSER funds, and the Connecticut Department of Education utilizes the Electronic Grants Management System (eGMS) to collect this reporting. The Town did not have documentation to support review of the annual report before submission. Corrective Action Taken: We agree with the finding and will review the annual report before submission going forward. This will be overseen by the BOE Director of Finance. Name and Phone # of Person Responsible for Implementation Mr. Peter Mynarski, Comptroller 203-622-2226

View Audit 360711

Finding 569103 (2024-005)

Material Weakness 2024

Town of Greenwich, Connecticut

CT

Questioned Costs Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking

2024-005 Material Weakness and Noncompliance, Suspension and Debarment Audit Finding: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with provisions of procurement, suspension, and debarment. Non-federal entities are...

2024-005 Material Weakness and Noncompliance, Suspension and Debarment Audit Finding: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with provisions of procurement, suspension, and debarment. Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Documentation that such a verification was done must be maintained. The Town did not have documentation to support verification that three vendors were not excluded from federal contract due to debarment or suspension. Corrective Action Taken: We agree with this finding and will implement and document such a process going forward. Name and Phone # of Person Responsible for Implementation Mr. Peter Mynarski, Comptroller 203-622-2226

View Audit 360711 Questioned Costs: $1

Finding 569051 (2024-003)

Significant Deficiency 2024

Town of Greenwich, Connecticut

CT

Reporting Questioned Costs Significant Deficiency § 200.512

2024-003- Significant Deficiency, Data Collection Form (Repeat Finding 2023-003) Audit Finding; The Town did not submit the 2024 or 2023 federal reporting packages with the Federal Audit Clearinghouse within the required timeline of either 30 days after receipt of the auditor’s reports or nine (9) m...

2024-003- Significant Deficiency, Data Collection Form (Repeat Finding 2023-003) Audit Finding; The Town did not submit the 2024 or 2023 federal reporting packages with the Federal Audit Clearinghouse within the required timeline of either 30 days after receipt of the auditor’s reports or nine (9) months after the end of the Town’s fiscal year as required by CFR 200.512(a)(1). Corrective Action Taken: We agree with this audit finding, resulting from turnover at the BOE. The delays should not reoccur in the future. Name and Phone # of Person Responsible for Implementation Mr. Peter Mynarski, Comptroller 203-622-2226

View Audit 360711

Finding 569048 (2024-001)

Significant Deficiency 2024

Rape Crisis Center of Collin County

TX

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

Finding Number: 2024-001: Allowable Costs – 2 out of the 38 samples tested included charges that were either unsupported or refunded back to the Organization and not corrected to return those funds to the grantor. Planned Corrective Action: The Turning Point has updated policies that include a proce...

Finding Number: 2024-001: Allowable Costs – 2 out of the 38 samples tested included charges that were either unsupported or refunded back to the Organization and not corrected to return those funds to the grantor. Planned Corrective Action: The Turning Point has updated policies that include a process for managing refunds and crediting them back to grants. We also updated our Expense Reimbursement and Credit Card policies in 2024 to simplify our payment process which includes both the Finance Director and Executive Director checking all expenses have the proper documentation prior to paying the statements/invoices and submitting to payors (funders) for reimbursement. Completion Date: June 1, 2025 Responsible Contact Person: Tana Rice, Director of Finance

View Audit 360710

Finding 569045 (2024-001)

Significant Deficiency 2024

Core, Inc.

DC

Questioned Costs Reporting Internal Control / Segregation of Duties

Management will establish a more robust month-end close process, that should result in a more timely report submission. Management will review the donor reporting requirements and engage in discussion with the donor.

View Audit 360699

Finding 569044 (2024-004)

Material Weakness 2024

Linden City Board of Education

AL

Questioned Costs Subrecipient Monitoring Material Weakness § 200.303

Condition: The Board could not provide a copy, with supporting documentation, of the annual required information submission to the Alabama Department of Education for the federal program. Planned Corrective Action: The Board will keep a copy of all annual required federal programs submission and sup...

Condition: The Board could not provide a copy, with supporting documentation, of the annual required information submission to the Alabama Department of Education for the federal program. Planned Corrective Action: The Board will keep a copy of all annual required federal programs submission and supporting documentation to the Alabama State Department of Education. Anticipated Completion Date: Effective immediately Point of Contact: Gwendolyn Rogers

View Audit 360698

Finding 569043 (2024-003)

Material Weakness 2024

Linden City Board of Education

AL

Subrecipient Monitoring Questioned Costs Matching / Level of Effort / Earmarking

Condition: Construction contracts for three federally funded projects did not include the required prevailing wage rate clauses. Monitoring for compliance with the prevailing wage requirements was not performed by the Board. Planned Corrective Action: Going forward, all federally funded construction...

Condition: Construction contracts for three federally funded projects did not include the required prevailing wage rate clauses. Monitoring for compliance with the prevailing wage requirements was not performed by the Board. Planned Corrective Action: Going forward, all federally funded construction projects will include the prevailing wage rate clauses. The Board will monitor for compliance with the prevailing wage requirements. Anticipated Completion Date: Effective immediately Point of Contact: Dr. Timothy Thurman

View Audit 360698 Questioned Costs: $1

Finding 569042 (2024-003)

Material Weakness 2024

Housing and Community Redevelopment Authority of Marlboro County

SC

Allowable Costs / Cost Principles Questioned Costs Procurement, Suspension & Debarment § 200.302 § 200.403 § 200.516

Title: Capital Fund Program Grant Draws Program Name: Public Housing Capital Fund ALN:14.872 Description: During our audit procedures over revenue recognition for the Capital Fund Program (CFP), we identiﬁed drawdowns of federal funds for which the client was unable to provide adequate supportin...

Title: Capital Fund Program Grant Draws Program Name: Public Housing Capital Fund ALN:14.872 Description: During our audit procedures over revenue recognition for the Capital Fund Program (CFP), we identiﬁed drawdowns of federal funds for which the client was unable to provide adequate supporting documentation. Speciﬁcally, the expenditures associated with the draw requests lacked invoices, contracts, or other substantiating records to demonstrate that the costs were allowable, allocable, and incurred in accordance with applicable federal requirements. Planned Corrective Action: Today’s Marlboro County Housing Authority management acknowledges the auditor’s ﬁnding that documentation to support certain CFP drawdowns was incomplete or missing and concurs that this represents a failure to comply with Uniform Guidance documentation requirements under 2 CFR §200.302 and §200.403. The Authority recognizes the importance of maintaining complete and accurate supporting records—such as invoices, contracts, and payment documentation—to substantiate costs charged to federal programs and ensure allowability and allocability under the Capital Fund Program. Effective October 1st, 2024, all draw requests under the Capital Fund Program ARE supported by: • Approved contracts or purchase orders • Invoices or other source documents • Proof of payment (e.g., canceled checks, ACH conﬁrmations) • Documentation clearly linking each expense to an approved activity in the CFP Annual Statement

View Audit 360695 Questioned Costs: $1

Finding 569041 (2024-002)

Material Weakness 2024

Housing and Community Redevelopment Authority of Marlboro County

SC

Cash Management Matching / Level of Effort / Earmarking Questioned Costs § 200.305

Title: Housing Choice Voucher Program Name: Section 8 Housing Choice Vouchers ALN: 14.871 Description: During the audit of the Authority, it was noted that federal funds were inappropriately loaned to affiliated entities without proper authorization or adherence to federal cash management requir...

Title: Housing Choice Voucher Program Name: Section 8 Housing Choice Vouchers ALN: 14.871 Description: During the audit of the Authority, it was noted that federal funds were inappropriately loaned to affiliated entities without proper authorization or adherence to federal cash management requirements. Speciﬁcally, the entity disbursed $43,533 in federal funds to the Housing Authority of Florence under the guise of a temporary loan, which was not supported by a formal agreement, lacked board approval, and was not repaid within the ﬁscal year. Planned Corrective Action: Today’s Marlboro County Housing Authority management concurs with the auditor’s ﬁnding that federal funds were disbursed to an affiliated entity without proper authorization, documentation, or compliance with federal cash management requirements. The Authority acknowledges that this disbursement represented a lapse in internal controls and was not consistent with the requirements outlined in 2 CFR §200.305(b). During the ﬁscal year ended September 30, 2024, the Authority also had a payable to the same affiliate in its Public Housing Program totaling $37,658. During the current 2024-2025 ﬁscal year, the Authority reimbursed its HCV program the amount loaned from its HCV program by the funds owed to the affiliate in its Public Housing Program. Today’s Marlboro County Housing Authority currently has an amount of $2,015 due to its affiliate as of May 31, 2025.

View Audit 360695 Questioned Costs: $1

Finding 569032 (2024-002)

Significant Deficiency 2024

Gloversville Housing Authority

RI

HUD Housing Programs Internal Control / Segregation of Duties Questioned Costs

2024-002 – REPORTING Other Matter/Significant Deficiency Auditee’s Response and Planned Corrective Action The Authority hired a new Executive Director in November 2023. Under new management, the year-end financial statements will be prepared and submitted timely and formalized guidelines for fina...

2024-002 – REPORTING Other Matter/Significant Deficiency Auditee’s Response and Planned Corrective Action The Authority hired a new Executive Director in November 2023. Under new management, the year-end financial statements will be prepared and submitted timely and formalized guidelines for financial reporting will be created. New controls over financial close process will ensure more accurate financial reporting prior to the audit. Planned Implementation Date of Corrective Action: Immediately Person Responsible for Corrective Action: Kayla Potter, Executive Director

View Audit 360687

Finding 569031 (2024-001)

Significant Deficiency 2024

Rocking Horse Children's Health Center Dba Rocking Horse Center

OH

Allowable Costs / Cost Principles Questioned Costs Reporting § 200.430

Corrective Action Plan June 26, 2025 U.S. Department of Health and Human Services Health Resources and Services Administration Rocking Horse Community Health Center and Affiliate respectively submits the following corrective action plan for the year ended December 31, 2024. Clark, Schaefer, Hac...

Corrective Action Plan June 26, 2025 U.S. Department of Health and Human Services Health Resources and Services Administration Rocking Horse Community Health Center and Affiliate respectively submits the following corrective action plan for the year ended December 31, 2024. Clark, Schaefer, Hackett & Co. 14 East Main Street, Suite 500 Springfield, OH 45502 Audit period: January 1, 2024 – December 31, 2024 The findings from the June 26, 2025 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS – FEDERAL AWARD PROGRAM AUDITS Department of Health and Human Services 2024-001 Health Center Cluster Program – ALN # 93.527; Grant No. H2E Significant Deficiency: See Finding 2024-001 Recommendation: Management should strengthen its internal controls over payroll charges to federal awards by ensuring consistent adherence to its time and effort certification policies as well as conduct periodic reviews of payroll documentation to verify compliance with established policies and federal requirements. Action Taken: We concur with the recommendation and will implement formal policies and procedures around obtaining time and effort certifications by June 30, 2025.

View Audit 360682 Questioned Costs: $1

Corrective Action Plans

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