Corrective Action Plans

Finding 1215066 (2025-001)

Material Weakness 2025

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Internal Control / Segregation of Duties

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Central Valley School District No. 356 September 1, 2024 through August 31, 2025 This schedule presents the corrective action the District is planning to take for findings included in this report in accordance with Title 2 U.S. Code...

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Central Valley School District No. 356 September 1, 2024 through August 31, 2025 This schedule presents the corrective action the District is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2025-001 Finding caption: The District did not have adequate internal controls for ensuring compliance with federal eligibility requirements. Name, address, and telephone of District contact person: Mathew Knott, Director of Business Services 2218 N. Molter Road Liberty Lake, WA 99019 509-558-5437 Corrective action the auditee plans to take in response to the finding: The District does agree that one school with a poverty rate above 75% was not served. However, OSPI reviewed and approved the District’s Title I application, including our proposed ranking and allocation methodology, and no concerns or comments were raised during that review process. Additionally, the District was able to provide alternative snapshot dates demonstrating that no individual school was truly above the 75% threshold. Once the District became aware of the issue, we proactively contacted OSPI to determine whether any corrective action was necessary for the current year. OSPI’s guidance was that no changes or corrections were required for the current year and that adjustments should instead be implemented in the following year if a school exceeded the 75% threshold. Based on that direction from OSPI, the District did not make current-year corrections. Given these circumstances, including OSPI’s prior approval of the application and subsequent guidance that no corrective action was required, the District respectfully disagrees with the State Auditor’s Office conclusion that this matter rises to the level of a Finding rather than being addressed through a Management Letter. We consider this matter to be resolved as no school going into the 2025-2026 fiscal year was above the 75% threshold. Anticipated date to complete the corrective action: 8/31/2025

View Audit 401770

Finding 1215059 (2025-002)

Material Weakness 2025

Los Angeles Homeless Services Authority

CA

Questioned Costs Allowable Costs / Cost Principles Significant Deficiency § 200.303 § 200.430

Continuum of Care Assistance Listing No. 14.267 Payroll Disbursements Recommendation: We recommend that LAHSA implement procedures to ensure that timesheet approval is documented timely. Explanation of disagreement with audit finding: There is no disagreement withthe audit finding. Action taken in r...

Continuum of Care Assistance Listing No. 14.267 Payroll Disbursements Recommendation: We recommend that LAHSA implement procedures to ensure that timesheet approval is documented timely. Explanation of disagreement with audit finding: There is no disagreement withthe audit finding. Action taken in response to finding: LAHSA has enhanced its internal controls over timesheet approvals to ensure timely documentation. Timesheet approval status reports are reviewed on a weekly basis during Chief level meetings to monitor compliance. Timesheets not approved within two days of the established deadline are escalated to the respective Chief and Deputy Chief for immediate follow-up. If timesheets remain unapproved after an additional two days, the matter is further escalated to the CEO, for prompt resolution. These procedures establish clear accountability and escalation protocols to ensure timely approval of timesheets Names of the contact persons responsible for corrective action: Gita O'Neill, Keshia Douglas, Christopher Williams, and Paul Rubenstein. Planned completion date for corrective action plan: Implemented

View Audit 401769

Finding 1215052 (2025-004)

Material Weakness 2025

Central Minnesota Jobs and Training Services

MN

Questioned Costs Allowable Costs / Cost Principles Eligibility

Finding 2025-004: Inadequate Approval Controls Over Adjusting Journal Entries and Invoices Recommendation: We recommend following documented controls to enforce approval for adjusting journal entries. We also recommend ensuring invoice processing workflows include mandatory approvals before payment....

Finding 2025-004: Inadequate Approval Controls Over Adjusting Journal Entries and Invoices Recommendation: We recommend following documented controls to enforce approval for adjusting journal entries. We also recommend ensuring invoice processing workflows include mandatory approvals before payment. We further recommend conducting periodic audits to verify compliance with approval policies. Action Taken: CMJTS migrated to a new accounting software in February of 2025. This software has systematic approval workflows built in to ensure approvals are done on journal entries before they are posted and invoices before they can be paid.

View Audit 401763

Finding 1214907 (2025-001)

Material Weakness 2025

Herkimer County Community College

NY

Questioned Costs Subrecipient Monitoring Eligibility

Views of Responsible Officials: The college verbally assigned GLBA responsibilities to an individual in a meeting several years ago regarding GLBA which was attended by all departments affected by its regulations. However, that assignment was not formalized in writing. This individual separated empl...

Views of Responsible Officials: The college verbally assigned GLBA responsibilities to an individual in a meeting several years ago regarding GLBA which was attended by all departments affected by its regulations. However, that assignment was not formalized in writing. This individual separated employment with the college in January 2026. As a result, the college is currently in the process of transitioning its information technology (IT) department under the auspices of the State University of New York Information Technology Exchange Center (SUNY ITEC) where the college has access to a wide range of resources including experts in GLBA. With this transition, SUNY ITEC will appoint the Chief Information Officer / IT Director as the qualified individual (QI) for GLBA compliance. SUNY ITEC’s Security Services will support the Director; informing and advising them of relevant IT Security Program and Security Operations activities and compliance, and the Director will be the signing QI.

View Audit 401665

Finding 1214894 (2025-001)

Material Weakness 2025

American Academy of Addiction Psychiatry, Inc.

RI

Significant Deficiency Internal Control / Segregation of Duties Questioned Costs § 200.512

Audit Finding Reference: 2025-001 Timely Filing of Single Audit Report Planned Corrective Action: The Organization understands it is the responsibility of the Organization to ensure the Single Audit Report is filed timely, At the beginning of the audit process, the Organization will establish an agr...

Audit Finding Reference: 2025-001 Timely Filing of Single Audit Report Planned Corrective Action: The Organization understands it is the responsibility of the Organization to ensure the Single Audit Report is filed timely, At the beginning of the audit process, the Organization will establish an agreed timeline with its auditors and the Organization will produce documentation consistent with that timeline. Planned Implementation Date of Corrective Action: April 21, 2026 Person Responsible for Corrective Action: Mike Stuard, Director of Finance

View Audit 401656

Finding 1214890 (2025-002)

Material Weakness 2025

HOMER ELECTRIC ASSOCIATION, INC

AK

Allowable Costs / Cost Principles Questioned Costs § 200.302

Description of Finding: Management should develop written procedures as required by 2 CFR Part 200.302(b)(7) Management Response: Management of Homer Electric Association concurs with the auditors’ finding regarding the absence of written procedures for determining the allowability of costs in accor...

Description of Finding: Management should develop written procedures as required by 2 CFR Part 200.302(b)(7) Management Response: Management of Homer Electric Association concurs with the auditors’ finding regarding the absence of written procedures for determining the allowability of costs in accordance with 2 CFR Part 200.302(b)(7). Corrective Action: While the Association applies applicable federal cost principles when administering grant-funded activities and no unallowable costs were identified, these practices were not formally documented in written procedures during the audit period. Management acknowledges that written procedures are required to ensure consistency, continuity, and clear guidance for personnel involved in federal grant administration. To address this matter, management will develop and implement written procedures for determining the allowability of costs charged to federal programs. These procedures will reference applicable Uniform Guidance cost principles and outline review and approval responsibilities to ensure compliance prior to costs being charged to federal awards. The procedures will be communicated to appropriate staff and incorporated into the Association’s grant administration practices. Management believes these corrective actions will strengthen internal controls over federal financial management and support continued responsible stewardship of grant funds for the benefit of the Association’s members. Projected Completion: A Federal Awards Management Policy has been drafted for executive review with formal adoption anticipated prior to June 1, 2026 Responsible Official(s): Chief Financial Officer

View Audit 401647

Finding 1214889 (2025-001)

Material Weakness 2025

HOMER ELECTRIC ASSOCIATION, INC

AK

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

Description of Finding: The Association did not have proper review procedures in place to document that an individual other than the one who prepared the reports are reviewing them. Management Response: Management of the Cooperative concurs with the auditors’ finding related to documentation of inde...

Description of Finding: The Association did not have proper review procedures in place to document that an individual other than the one who prepared the reports are reviewing them. Management Response: Management of the Cooperative concurs with the auditors’ finding related to documentation of independent review over federal grant reporting. Corrective Action: Reports submitted under the Community Wildfire Defense Grants program included a required certification signature by an authorized official; however, the state-provided reporting form did not include a separate preparer signature line. As a result, while management review and approval occurred prior to submission, documentation distinguishing report preparation from certification was not evident on the submitted forms. Management recognizes the importance of clearly documenting segregation of preparation and review responsibilities to evidence effective internal controls. To address this matter, the Cooperative will revise its grant reporting process to include documented identification of both the preparer and reviewer for all federal grant reports. When state-provided forms do not include a preparer acknowledgment, the Cooperative will supplement the form with an internal preparer certification or signature line that is retained with the grant file. Management believes these actions will strengthen documentation of internal controls over reporting while continuing to comply with state and federal reporting requirements. The Cooperative remains committed to responsible oversight and stewardship of federal grant funds for the benefit of its members. This change was implemented beginning with the first quarterly reporting period under the Grant Agreement in 2026. Projected Completion: A second signature line for the preparer was added to the Community Wildfire Defense Financial Progress Reports to document HEA’s review procedure. This was instituted with the First Quarterly Report submitted on 4/15/26. Responsible Official(s): Chief Financial Officer

View Audit 401647

Finding 1214879 (2025-001)

Material Weakness 2025

Newburyport Housing Authority

MA

HUD Housing Programs Internal Control / Segregation of Duties Questioned Costs

CORRECTIVE ACTION PLAN 2025-001- REPORTING Significant Deficiency/Noncompliance Auditee’s Response and Planned Corrective Action The Newburyport Housing Authority submitted audit documentation late due to the Executive Director, Tracy Watson, being on medical leave since August 2025. During this tim...

CORRECTIVE ACTION PLAN 2025-001- REPORTING Significant Deficiency/Noncompliance Auditee’s Response and Planned Corrective Action The Newburyport Housing Authority submitted audit documentation late due to the Executive Director, Tracy Watson, being on medical leave since August 2025. During this time, staff experienced difficulties obtaining the required documentation needed to complete the audit in a timely manner. The NHA Board of Commissioners named Kim Kane as Interim Executive Director during Tracy Watson’s absence. Kim Kane will ensure all documentation is submitted in full and in a timely manner. Planned Implementation Date of Corrective Action: Immediately Person Responsible for Corrective Action: Kim Kane, Interim Executive Director

View Audit 401612

Finding 1214877 (2025-001)

Material Weakness 2025

Perry County Non-Profit Housing Corporation

PA

Questioned Costs

Management will implement a process whereby the year end filings will be tracked and the date filed documented

View Audit 401607

Finding 1214875 (2025-006)

Material Weakness 2025

County of Mono

CA

Questioned Costs Subrecipient Monitoring

HOME Continuing Loan Compliance Similar to the CDBG loans, letters were sent out for fiscal year 2025-26 in February 2026. The County Administrative Office will give one month for responses. Return envelopes were included. For those not providing documentation, the County Administrative Office will ...

HOME Continuing Loan Compliance Similar to the CDBG loans, letters were sent out for fiscal year 2025-26 in February 2026. The County Administrative Office will give one month for responses. Return envelopes were included. For those not providing documentation, the County Administrative Office will partner with the Sheriff’s Department to deliver additional letters in person. With a Sheriff’s Deputy delivering letters in person this should pressure homeowners to provide monitoring documentation. Corrective action to begin FY 2025-26

View Audit 401604

Finding 1214873 (2025-005)

Material Weakness 2025

County of Mono

CA

Questioned Costs Subrecipient Monitoring

CDBG Continuing Loan Compliance Letters were sent out for fiscal year 2025-26 in February 2026. The County Administrative Office will give one month for responses. Return envelopes were included. For those not providing documentation, the County Administrative Office will partner with the Sheriff’s ...

CDBG Continuing Loan Compliance Letters were sent out for fiscal year 2025-26 in February 2026. The County Administrative Office will give one month for responses. Return envelopes were included. For those not providing documentation, the County Administrative Office will partner with the Sheriff’s Department to deliver additional letters in person. With a Sheriff’s Deputy delivering letters in person this should pressure homeowners to provide monitoring documentation. Corrective action to begin FY 2025-26

View Audit 401604

Finding 1214868 (2025-002)

Material Weakness 2025

Town of Lincoln

RI

Questioned Costs Procurement, Suspension & Debarment Significant Deficiency § 200.303 § 200.318 § 200.326

Significant Deficiency in Internal Control over Compliance, Other Matters Description of Finding Lincoln Public Schools procurement standards do not include the essential elements as outlined in 2 CFR sections 200.303, and 200.318 through 200.326 within Uniform Guidance. Statement of Concurrence or ...

Significant Deficiency in Internal Control over Compliance, Other Matters Description of Finding Lincoln Public Schools procurement standards do not include the essential elements as outlined in 2 CFR sections 200.303, and 200.318 through 200.326 within Uniform Guidance. Statement of Concurrence or Nonconcurrence Management concurs with the finding. Corrective Action Management will update Lincoln Public Schools’ procurement policies to include all essential elements to be in compliance with Uniform Guidance.

View Audit 401582

Finding 1214864 (2025-002)

Material Weakness 2025

Saraland Manor, Inc.

MS

Questioned Costs Subrecipient Monitoring Eligibility

We agree with Finding 2025-002 and the recommendations described above. We will provide additional training to staff to ensure annual recertifications are completed in a timely manner.

View Audit 401563

Finding 1214802 (2025-001)

Material Weakness 2025

Council on the Environment, INC

NY

Questioned Costs

Management acknowledges the late electronic submission of the annual audited financial statements to the Federal Audit Clearinghouse and has reviewed the circumstances surrounding the delay. Appropriate measures are being evaluated to support timely filings going forward.

View Audit 401525

Finding 1214777 (2025-001)

Material Weakness 2025

Metro Towers, Inc. St. James Place

MO

HUD Housing Programs Questioned Costs Special Tests & Provisions

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED DECEMBER 31, 2025 Title 2, U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Subpart F, Section 511 – Audit Findings Follow-up requires the auditee t...

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED DECEMBER 31, 2025 Title 2, U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Subpart F, Section 511 – Audit Findings Follow-up requires the auditee to prepare a corrective action plan to address each audit finding included in the current year auditor’s reports. The Corrective Action Plan for Current Year Findings present our corrective action plan for the Financial Statement and/or Federal Award Findings described in the accompanying Schedule of Findings and Questioned Costs for the period ended December 31, 2025. Finding 2025-001 Responsible Party Name: Fred Gibbs Position: President – Management Agent Telephone Number: 913-709-1811 Federal Agency U.S. Department of Housing and Urban Development Federal Program Mortgage Insurance for Purchase or Refinancing of Existing Multifamily Rental Housing (Section 207/223(F)) Compliance Requirements N – Special Tests and Provisions Finding Type Financial Statement and Federal Awards Auditee’s Comment on Finding We agree with the auditor’s finding. Corrective Action We will follow our policies and procedures to ensure that accounting records are kept accurate and complete, and a responsible official will review and sign off on the monthly financial statements. Anticipated Completion Date July 31, 2026

View Audit 401516

Finding 1214776 (2025-001)

Material Weakness 2025

Catholic Charities of the Diocese of St. Cloud

MN

Eligibility Questioned Costs Significant Deficiency

Foster Grandparent Program – Assistance Listing No. 94.011 Recommendation: The organization should ensure proper eligibility verifications are performed for all current and potential program participants to ensure all program participants are eligible. Explanation of disagreement with audit finding:...

Foster Grandparent Program – Assistance Listing No. 94.011 Recommendation: The organization should ensure proper eligibility verifications are performed for all current and potential program participants to ensure all program participants are eligible. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization will ensure moving forward that eligibility verifications are performed for all participants in a timely manner as specified by the grant requirements. Name(s) of the contact person(s) responsible for corrective action: Andrew Johannes, CFO Planned completion date for corrective action plan: 12/31/2026

View Audit 401515

Finding 1214770 (2025-001)

Material Weakness 2025

Parallel Senior Villas, INC

KS

HUD Housing Programs Questioned Costs Special Tests & Provisions

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED DECEMBER 31, 2025 Title 2, U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Subpart F, Section 511 – Audit Findings Follow-up requires the auditee t...

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED DECEMBER 31, 2025 Title 2, U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Subpart F, Section 511 – Audit Findings Follow-up requires the auditee to prepare a corrective action plan to address each audit finding included in the current year auditor’s reports. The Corrective Action Plan for Current Year Findings present our corrective action plan for the Financial Statement and/or Federal Award Findings described in the accompanying Schedule of Findings and Questioned Costs for the period ended December 31, 2025. Responsible Party Name: Fred Arreguin Position: Chief Financial Officer Telephone Number: 816-561-4240 Finding 2025-001 (Material Weakness) Federal Agency U.S. Department of Housing and Urban Development Federal Program Supportive Housing for the Elderly (Section 202) Compliance Requirements N – Special Tests and Provisions Finding Type Federal Awards Auditee’s Comments on Finding We agree with the auditor’s finding. Corrective Action We performed the required repair and maintenance on the elevator issue identified during the February 23, 2026 inspection. The elevator company reinspected the elevator on April 1, 2026, and noted the issue was resolved. On April 3, 2026, we received a Certificate of Inspection that expires on February 23, 2027. Anticipated Completion Date April 3, 2026

View Audit 401507

Finding 1214767 (2025-001)

Material Weakness 2025

Northeast Texas Public Health District

TX

Internal Control / Segregation of Duties Questioned Costs Subrecipient Monitoring § 200.430

Management’s Views and Corrective Action Plan: Management’s Views: Management agrees with the finding. While the hours charged to the federal programs were reasonable and supported, the lack of timely supervisory approval represents a breakdown in the District’s established internal control procedur...

Management’s Views and Corrective Action Plan: Management’s Views: Management agrees with the finding. While the hours charged to the federal programs were reasonable and supported, the lack of timely supervisory approval represents a breakdown in the District’s established internal control procedures over payroll processing. Management acknowledges the importance of ensuring that all payroll charges to federal awards are properly reviewed and approved in accordance with District policy and federal requirements. Corrective Action: The District’s Human Resource Department will verify timecard approvals on Mondays. If Monday falls on a holiday, approvals will be verified on the Friday before. Human Resources will verify that each employee has approved his or her timecard for the prior week and that the employee’s Supervisor or Director has also approved the timecard. For timecards not approved by the employee, an email will be sent to the employee and the Supervisor or Director will be included. For timecards not approved by the Supervisor or Director, an email will be sent to the Supervisor or Director requesting approval, and the CEO will be included. Prior policy did not specify actions when timecards are not approved. Responsible Party: The District’s Human Resources Director and Department Directors Implementation Date: June 1, 2026 Monitoring Procedures: The Human Resources Director will maintain documentation of the weekly review process, including any follow-up communications. Compliance with the timecard approval policy will be periodically reviewed to ensure the control is operating effectively. Any recurring issues will be communicated to executive management for further action. Monitoring procedures were not included in prior policy.

View Audit 401492

Finding 1214745 (2025-002)

Material Weakness 2025

Woods Hole, Martha's Vineyard and Nantucket Steamship Authority

MA

Internal Control / Segregation of Duties Questioned Costs Significant Deficiency

2025-002: Inadequate Controls Related to Wage Rate Requirements Condition: Of the five contracts included within major program 20.205 in the current year, two were subject to the wage rate requirement. These two contracts accounted for $1.9M of the $4M total program expenditures. In total there were...

2025-002: Inadequate Controls Related to Wage Rate Requirements Condition: Of the five contracts included within major program 20.205 in the current year, two were subject to the wage rate requirement. These two contracts accounted for $1.9M of the $4M total program expenditures. In total there were 13 weeks of payroll included within the two contracts, of which three were selected for testing. The internal control failure occurred due to the timing of the invoices in relation to year end close procedures. Payment was accelerated to capture both the expense and cash outlay within the same fiscal year overlooking the need to confirm the receipt of the certified payrolls. Corrective Action Taken or Planned: Prior to submitting any invoices that are reimbursable with federal funds, the accounting staff will verify in writing that the vendor’s certified payrolls have been received and reviewed. Additionally, a newly created Federally Funded Invoice and Payment Compliance Checklist form has been created. This form will be completed and submitted with the approved invoice for payment. Person Responsible for Corrective Action: Mark Rozum, Treasurer/Comptroller Anticipated Completion Date for Corrective Action: The corrective action has already started and will be fully implemented within 30 days in response to the auditor’s recommendations.

View Audit 401486

Finding 1214699 (2025-001)

Material Weakness 2025

Shawl II Senior Housing of Montague

MI

HUD Housing Programs Questioned Costs Cash Management

Shawl II, Senior Housing of Montague, respectfully submits the following corrective action plan for the year ended December31, 2025. Name and address of independent public accounting firm: Maner Costerisan, P.C. 2425 E. Grand River Ave, Ste 1 Lansing, MI 48912 Audit period: January 1, 2025 to Decemb...

Shawl II, Senior Housing of Montague, respectfully submits the following corrective action plan for the year ended December31, 2025. Name and address of independent public accounting firm: Maner Costerisan, P.C. 2425 E. Grand River Ave, Ste 1 Lansing, MI 48912 Audit period: January 1, 2025 to December 31, 2025 The findings from the December 31, 2025 schedule of findings, questioned costs, and recommendations are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Findings - Considered to be immaterial noncompliance Finding 2025-001 Recommendation: We recommend that management implement procedures to review the residual receipt account on a regular basis and ensure that residual receipt deposits are in accordance with HUD requirements. Management Comments: We agree with the facts and circumstances described above. Subsequent to year end, the Organization funded the residual receipt account for the amount of the deficiency of $10,582, and the account is now fully funded in accordance with HUD requirements. No underfunding existed as of the report date. Management has implemented procedures to make sure required residual receipt deposits from surplus cash are made to ensure ongoing compliance with HUD requirements.

View Audit 401445

Finding 1214698 (2025-006)

Material Weakness 2025

Catholic Charities of the Diocese of Palm Beach County, Inc.

FL

Questioned Costs Allowable Costs / Cost Principles

U.S. Department of Justice Assistance Listing-No. 16.320 Recommendation: Management should implement review procedures to ensure that all expenses submitted for reimbursement are incurred within the approved grant period prior to submission. Explanation of disagreement with audit finding: There is n...

U.S. Department of Justice Assistance Listing-No. 16.320 Recommendation: Management should implement review procedures to ensure that all expenses submitted for reimbursement are incurred within the approved grant period prior to submission. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Catholic Charities of the Diocese of Palm Beach is strengthening reimbursement review controls for the U.S. Department of Justice program by implementing review procedures to verify that all expenses submitted for reimbursement were incurred within the approved grant period. Prior to submission of reimbursement requests, finance personnel will review invoices and service dates supporting each expenditure to confirm allowability within the grant period. In addition, reimbursement packages will require documented review and approval by both finance and program personnel prior to submission. These procedures are intended to improve compliance with grant period requirements and reduce the risk of ineligible costs being submitted for reimbursement. Name(s) of the contact person(s) responsible for corrective action: Carol Rodriguez, Program Development & Quality Director; Marc Hopin, Finance Director; and Sandra Perez, Program Director Planned completion date for corrective action plan: June 30, 2026

View Audit 401440

Finding 1214697 (2025-005)

Material Weakness 2025

Catholic Charities of the Diocese of Palm Beach County, Inc.

FL

Procurement, Suspension & Debarment Eligibility Questioned Costs

U.S. Department of Justice Assistance Listing-No. 16.320 Recommendation: Management should implement a review process requiring eligibility assessments to be reviewed by an individual other than the preparer and update procurement policies to fully comply with Uniform Guidance requirements, includin...

U.S. Department of Justice Assistance Listing-No. 16.320 Recommendation: Management should implement a review process requiring eligibility assessments to be reviewed by an individual other than the preparer and update procurement policies to fully comply with Uniform Guidance requirements, including procedures for procurements exceeding the micro purchase threshold. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Catholic Charities of the Diocese of Palm Beach is strengthening compliance procedures for the U.S. Department of Justice program by implementing a formal secondary review process for participant eligibility determinations and by updating procurement policies and procedures to align with Uniform Guidance requirements. All eligibility determinations will be reviewed by qualified personnel independent of the preparer prior to final approval to confirm compliance with grant eligibility requirements and completeness of supporting documentation. In addition, management will revise procurement policies and related procedures to address procurements exceeding the micro-purchase threshold and to clarify documentation and approval requirements for applicable purchases. These actions are intended to improve compliance with grant eligibility and procurement requirements. Name(s) of the contact person(s) responsible for corrective action: Carol Rodriguez, Program Development & Quality Director; and Marc Hopin, Finance Director Planned completion date for corrective action plan: June 30, 2026

View Audit 401440

Finding 1214695 (2025-004)

Material Weakness 2025

Catholic Charities of the Diocese of Palm Beach County, Inc.

FL

Allowable Costs / Cost Principles Questioned Costs

U.S. Department of Health and Human Services-Assistance Listing No. 93.558 Recommendation: Management should ensure that all payroll costs charged to the program are supported by adequate documentation demonstrating that the costs were incurred and allocable to the Homeless Challenge Grant. Explanat...

U.S. Department of Health and Human Services-Assistance Listing No. 93.558 Recommendation: Management should ensure that all payroll costs charged to the program are supported by adequate documentation demonstrating that the costs were incurred and allocable to the Homeless Challenge Grant. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Catholic Charities of the Diocese of Palm Beach is strengthening payroll allocation controls for the Homeless Challenge Grant by implementing enhanced documentation and review procedures for payroll costs charged to the program. Management will require supporting documentation sufficient to demonstrate that payroll costs charged to the grant were incurred, allocable, and properly supported in accordance with grant requirements. This process will include supervisory review of payroll allocations, reconciliation of payroll charges to supporting records, and periodic assessment of payroll allocations to confirm continued appropriateness. Adjustments will be made as necessary to maintain accurate grant reporting and cost allocation. Name(s) of the contact person(s) responsible for corrective action: Carol Rodriguez, Program Development & Quality Director; Marc Hopin, Finance Director; and Rocio Lopez, Program Director Planned completion date for corrective action plan: June 30, 2026

View Audit 401440

Finding 1214694 (2025-003)

Material Weakness 2025

Catholic Charities of the Diocese of Palm Beach County, Inc.

FL

Eligibility Questioned Costs Material Weakness

U.S. Department of Health and Human Services-Assistance Listing No. 93.558 Recommendation: Eligibility intake forms should be reviewed by an individual other than the preparer to ensure that only eligible participants are served under the Homeless Challenge Grant. Explanation of disagreement with au...

U.S. Department of Health and Human Services-Assistance Listing No. 93.558 Recommendation: Eligibility intake forms should be reviewed by an individual other than the preparer to ensure that only eligible participants are served under the Homeless Challenge Grant. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Catholic Charities of the Diocese of Palm Beach is strengthening eligibility determination controls for the Homeless Challenge Grant by implementing a formal secondary review process for participant intake and eligibility documentation. All eligibility determinations will be reviewed by qualified personnel independent of the preparer prior to final approval to confirm compliance with grant eligibility requirements and completeness of supporting documentation. Management will also maintain documentation evidencing the completion of the secondary review. These procedures are intended to strengthen compliance with grant requirements and reduce the risk of ineligible participants being served. Name(s) of the contact person(s) responsible for corrective action: Carol Rodriguez, Program Development & Quality Director; and Rocio Lopez, Program Director Planned completion date for corrective action plan: June 30, 2026

View Audit 401440

Finding 1214693 (2025-002)

Material Weakness 2025

Catholic Charities of the Diocese of Palm Beach County, Inc.

FL

Matching / Level of Effort / Earmarking Questioned Costs

U.S. Department of Health and Human Services-Assistance Listing No. 93.558 Recommendation: Management should strengthen internal review controls to ensure that cost-sharing expenditures are allowable, level-of-effort requirements are fully documented and reviewed, and program benchmarks are monitore...

U.S. Department of Health and Human Services-Assistance Listing No. 93.558 Recommendation: Management should strengthen internal review controls to ensure that cost-sharing expenditures are allowable, level-of-effort requirements are fully documented and reviewed, and program benchmarks are monitored throughout the grant period to ensure compliance with grant requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Catholic Charities of the Diocese of Palm Beach is strengthening its grant compliance procedures for the Homeless Challenge Grant. Management is implementing formal processes to separately track allowable match sources, verify that proposed cost-sharing expenditures are non-federal and otherwise allowable prior to inclusion in grant reporting, and maintain supporting documentation for all level-of-effort calculations and compliance measures. In addition, management will conduct periodic grant compliance meetings between program and finance personnel to review benchmark attainment, cost-sharing requirements, and reporting obligations. Program leadership will certify compliance with applicable benchmarks and level-of-effort requirements prior to submission of related grant reports. These measures are intended to improve grant compliance oversight and reduce the risk of future noncompliance. Name(s) of the contact person(s) responsible for corrective action: Carol Rodriguez, Program Development & Quality Director; Marc Hopin, Finance Director; and Rocio Lopez, Program Director Planned completion date for corrective action plan: June 30, 2026

View Audit 401440

Corrective Action Plans

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