Corrective Action Plans

Finding 1206069 (2025-003)

Material Weakness 2025

Ida County Iowa Community Hospital D/b/a Horn Memorial Hospital

IA

Questioned Costs Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303

Criteria: CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. The loan re...

Criteria: CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. The loan resolution security agreement states the Hospital must set aside a capital asset replacement account which may be established as a bookkeeping account or as a separate bank account. Funds may be deposited in institutions insured by state and federal government orinvested in marketable securities backed by the full faith and credit of the United States. Condition: The funds that represented the capital asset replacement fund were commingled with an existing board-designated CD account. Views of Responsible Officials and Planned Corrective Action: Management agrees with the funding and will deposit the required capital asset replacement funds in either a separate bank account or general ledger account. Planned Completion Date: December 31, 2026 Person Responsible: Nik Brimeyer, CFO

View Audit 397953

Finding 1206068 (2025-001)

Material Weakness 2025

The Towers LLC

MN

HUD Housing Programs Questioned Costs

2025-001 - Management Fees Name of contact person - Vicky Dwyer, CFO, Great Lakes Management Company Corrective action - Management began the process of requesting these changes from HUD prior to when the changes went into effect, working through the mortgage company. However, due to turnover at the...

2025-001 - Management Fees Name of contact person - Vicky Dwyer, CFO, Great Lakes Management Company Corrective action - Management began the process of requesting these changes from HUD prior to when the changes went into effect, working through the mortgage company. However, due to turnover at the mortgage company, the request for approval by HUD was never sent to HUD. As a result, management is now currently in the process of working with HUD, the mortgage company, and ownership’s lawyer to obtain all necessary approvals. Proposed completion date - Management has put in the necessary requests with HUD and the mortgage company to receive the necessary approvals, and the finding will be corrected once HUD has issued its approval or other response to management.

View Audit 397951

Finding 1206067 (2025-001)

Material Weakness 2025

Terraces Assisted Living INC

MN

HUD Housing Programs Questioned Costs Material Weakness

2025-001 - Management Fees Name of contact person - Vicky Dwyer, CFO, Great Lakes Management Company Corrective action - Management began the process of requesting these changes from HUD prior to when the changes went into effect, working through the mortgage company. However, due to turnover at the...

2025-001 - Management Fees Name of contact person - Vicky Dwyer, CFO, Great Lakes Management Company Corrective action - Management began the process of requesting these changes from HUD prior to when the changes went into effect, working through the mortgage company. However, due to turnover at the mortgage company, the request for approval by HUD was never sent to HUD. As a result, management is now currently in the process of working with HUD, the mortgage company, and ownership’s lawyer to obtain all necessary approvals. Proposed completion date - Management has put in the necessary requests with HUD and the mortgage company to receive the necessary approvals, and the finding will be corrected once HUD has issued its approval or other response to Management.

View Audit 397950

Finding 1206058 (2025-010)

Material Weakness 2025

CITY OF COLSTRIP

MT

Questioned Costs Internal Control / Segregation of Duties

NONCOMPLIANCE WITH GRANT TERMS AND CONDITIONS, CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS, ASSISTANCE LISTING No. 21.027, AM-23-0256, AM-23-0255, YEAR ENDED JUNE 30, 2025 Name of contact person: Michelle Richards – City Clerk/Treasurer Corrective Action: Written grant administration policies ...

NONCOMPLIANCE WITH GRANT TERMS AND CONDITIONS, CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS, ASSISTANCE LISTING No. 21.027, AM-23-0256, AM-23-0255, YEAR ENDED JUNE 30, 2025 Name of contact person: Michelle Richards – City Clerk/Treasurer Corrective Action: Written grant administration policies and procedures will be developed. Procedures will include designation of parties responsible for submission of required documents, progress/monitoring reports, draw requests, etc. Proposed Completion Date: Fiscal year 2027

View Audit 397933

Finding 1206053 (2025-001)

Material Weakness 2025

Lasalle Park Homes Ii, Inc. 073-Ee100-Np-Wah

IN

Questioned Costs Subrecipient Monitoring HUD Housing Programs

Finding 2025-001: Management fees of $6,012 were prepaid at December 31, 2025. Comments on the Finding and Each Recommendation: The Agent should reimburse $6,012 to the Community. Action(s) taken or planned on the finding: Agree. During the year ended December 31, 2026, the Agent will reimburse $6,0...

Finding 2025-001: Management fees of $6,012 were prepaid at December 31, 2025. Comments on the Finding and Each Recommendation: The Agent should reimburse $6,012 to the Community. Action(s) taken or planned on the finding: Agree. During the year ended December 31, 2026, the Agent will reimburse $6,012 to the Community.

View Audit 397927

Finding 1206047 (2025-001)

Material Weakness 2025

Eagle Lake Development Corporation

ME

Internal Control / Segregation of Duties Questioned Costs

Name of contact person: Michelle Raymond, Management Agent Corrective Action: The Organization will ensure that excess security deposit funds are transferred to the Organization’s operating account on a timely basis in the future. Proposed implementation date: The corrective action plan will be impl...

Name of contact person: Michelle Raymond, Management Agent Corrective Action: The Organization will ensure that excess security deposit funds are transferred to the Organization’s operating account on a timely basis in the future. Proposed implementation date: The corrective action plan will be implemented immediately.

View Audit 397890

Finding 1206038 (2025-001)

Material Weakness 2025

Heartland Christian Tower, Inc.

OH

Questioned Costs

The Corporation concurs with the finding. The Corporation obtained the Unique Entity Identifier (UEI) in order to complete and submit the 2022, 2023, and 2024 data collection forms to the Federal Audit Clearinghouse. The completion date for this corrective action was June 16, 2025. Contact: Sean Ale...

The Corporation concurs with the finding. The Corporation obtained the Unique Entity Identifier (UEI) in order to complete and submit the 2022, 2023, and 2024 data collection forms to the Federal Audit Clearinghouse. The completion date for this corrective action was June 16, 2025. Contact: Sean Alexander, Senior Vice President and Chief Financial Officer, National Church Residences.

View Audit 397885

Finding 1206034 (2025-001)

Material Weakness 2025

Silver Lake Housing, Inc.

TX

Questioned Costs Cash Management HUD Housing Programs

Condition: The tenant security deposit cash account was insufficient to cover the tenant security deposit liability. - Response: The reserve for replacement has ample funds to request reimbursements of qualified expenditures and Management plans to make a sizable request for funds in April 2026. If ...

Condition: The tenant security deposit cash account was insufficient to cover the tenant security deposit liability. - Response: The reserve for replacement has ample funds to request reimbursements of qualified expenditures and Management plans to make a sizable request for funds in April 2026. If approved, management can fund the deficiency in the security deposits. Management is also going to request a Budget Based Rent increase in May 2026 for the property due to the extraordinary escalation of operating costs of the last three years. Management believes that with these steps it will be able to return to its previous cash flow position.

View Audit 397875

Finding 1206031 (2025-003)

Material Weakness 2025

Barren County Economic Authority

KY

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring § 200.303 § 200.327

2025-003 PREVAILING WAGE U.S. Department of Housing and Urban Development ALN 14.251 – Economic Development Initiative, Community Project Funding, and Miscellaneous Grants Contract No. B-22-CP-KY-0347 (2022) and B-23-CP-KY-0612 (2023) Criteria and Condition: During our audit procedures, we noted the...

2025-003 PREVAILING WAGE U.S. Department of Housing and Urban Development ALN 14.251 – Economic Development Initiative, Community Project Funding, and Miscellaneous Grants Contract No. B-22-CP-KY-0347 (2022) and B-23-CP-KY-0612 (2023) Criteria and Condition: During our audit procedures, we noted the Authority did not notify contractors that Federal funds would be in payments. As such, contractors did not include federal prevailing wage language in their bids/contracts, and did not provide weekly certified payroll reports to the Authority. Cause: Management was unaware of the requirements of prevailing wage for federal construction grants, and as such, did not communicate to contractors that federal funds would be utilized. Effect: The Authority was not in compliance with the grant requirements in the OMB Compliance Supplement over prevailing wage requirements for laborers and mechanics. Questioned Costs: Unable to determine. Recommendation: We recommend management obtain a greater understanding of the Compliance Supplement requirements over HUD grants, and implement a review process whereby contracts and invoices are not approved without appropriate prevailing wage consideration and certified payrolls. Action Taken: The Authority will gain a greater understanding of HUD grants, and will implement a review process to ensure prevailing wage requirements are considered prior to approving contracts and invoices. Individual(s) responsible for implementing: Maureen Carpenter, CEO Anticipated Completion Date: September 30, 2026

View Audit 397853

Finding 1205932 (2025-005)

Material Weakness 2025

City of Satellite Beach

FL

Questioned Costs Reporting Matching / Level of Effort / Earmarking § 200.303

2025-005 Lack of Reporting Review Recommendation: The City should have controls in place to ensure all reports are reviewed prior to submittal. Management Response: Management agrees that reports should be reviewed prior to submission and notes that the City does have controls in place to ensure app...

2025-005 Lack of Reporting Review Recommendation: The City should have controls in place to ensure all reports are reviewed prior to submittal. Management Response: Management agrees that reports should be reviewed prior to submission and notes that the City does have controls in place to ensure appropriate review procedures are performed. In this instance, the report was prepared and submitted by the City Manager, and due to limitations within the Federal Government’s online reporting system, there was not a built-in approval workflow available to document the review process. To strengthen our controls, the City will print and retain a copy of the report prior to electronic submission to allow for documented review and approval. This will ensure appropriate oversight is evidenced and that sufficient supporting documentation is maintained to demonstrate the review process was completed. Responsible Parties: Brittany Retherford, City Manager, Mindy Brown, Comptroller, and Bethany Messersmith, Assistant Comptroller Anticipated Completion Date: September 30, 2026

View Audit 397766

Finding 1205927 (2025-001)

Material Weakness 2025

Accessible Residences, Inc. 113-Hd003

TX

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

Special Tests and Provisions – Material Weakness in Internal Controls over Compliance (Replacement Reserve Disbursement – HUD Approval Requirement) Management Response Management acknowledges that a disbursement of $15,000 was made from the replacement reserve account without obtaining prior written...

Special Tests and Provisions – Material Weakness in Internal Controls over Compliance (Replacement Reserve Disbursement – HUD Approval Requirement) Management Response Management acknowledges that a disbursement of $15,000 was made from the replacement reserve account without obtaining prior written approval from HUD, as required under the Capital Advance Regulatory Agreement. Management recognizes that appropriate controls were not in place to prevent disbursement of restricted reserve funds without required approval, resulting in noncompliance. Management has initiated communication with HUD to disclose the transaction and request guidance on the appropriate resolution. The organization will comply with all directives issued by HUD and will continue to follow up as necessary to ensure timely resolution. Corrective Actions Implemented / To Be Implemented • A formal control will be implemented requiring documented written HUD approval prior to any disbursement from the replacement reserve account. • All reserve disbursements will require documented HUD approval prior to processing and will be subject to Controller review to ensure compliance with HUD requirements. • Replacement reserve accounts will be formally designated as restricted funds within internal financial procedures. • A formal policy governing replacement reserve disbursements will be established. • Alternative funding sources will be used when HUD approval is not available. • Training will be provided to relevant staff on HUD requirements and reserve controls.Training Training on reserve account procedures will be conducted by May 1, 2026, with refresher training annually. Responsible Staff: Controller – Oversight of compliance Chief Executive Officer (CEO) – Final accountability Implementation Date: Corrective actions related to implementation of review controls will be implemented immediately. Resolution will follow HUD guidance.

View Audit 397748

Finding 1205903 (2025-005)

Material Weakness 2025

Cairo School District No. 1

IL

Questioned Costs Allowable Costs / Cost Principles Cash Management

Name of Contact Person: Pamela Rizkallah, Superintendent. Recommendation: We recommend that the District only charge costs that are allowable under the grant agreement. We also recommend that the District contact ISBE to discuss if the District will need to return the funds reimbursed by the Illinoi...

Name of Contact Person: Pamela Rizkallah, Superintendent. Recommendation: We recommend that the District only charge costs that are allowable under the grant agreement. We also recommend that the District contact ISBE to discuss if the District will need to return the funds reimbursed by the Illinois School Board of Education for these unallowable expenditures. Corrective Action: The District will ensure that all costs charged to the Title I grant are allowable per the grant agreement going forward. Proposed Completion Date: Immediately.

View Audit 397705

Finding 1205835 (2025-003)

Material Weakness 2025

Cleveland County

NC

Eligibility Internal Control / Segregation of Duties Questioned Costs

Finding 2025-001 Reconciliation of Records Name of Contact Person: Philip Steffen, Finance Director Corrective Action: Proposed Completion Date: Finding 2025-002 Late Submission of Audit Name of Contact Person: Philip Steffen, Finance Director Corrective Action: Proposed Completion Date: Finding 202...

Finding 2025-001 Reconciliation of Records Name of Contact Person: Philip Steffen, Finance Director Corrective Action: Proposed Completion Date: Finding 2025-002 Late Submission of Audit Name of Contact Person: Philip Steffen, Finance Director Corrective Action: Proposed Completion Date: Finding 2025-003 Inaccurate Information Entry Name of Contact Person: Alice Wilson, Medicaid Program Administrator Corrective Action: Proposed Completion Date: Section III - Federal Award Findings and Questioned Costs Section II - Financial Statement Findings Refresher training will be provided to all Medicaid staff for areas of deficiency. Beginning 2/1/2026, all LTC/CAP/PACE applications wil be reviewed by a supervisor prior to disposition. All adult Medicaid caseworkers will keep a pending recertification log and/or applicaction log that will be updated and emailed to supervision weekly. Caseworkers will continue to use the checklist created and implemented in October 2025. Beginning 2/1/2026 all extensions for Adult Medicaid recertifications will be staffed with the Program Manager prior to any action keyed. Beginning 2/1/2026, a designated supervisor or lead worker will complete targeted second party reviews for Family Medicaid specifically to ensure household composition is correct. For the Year Ended June 30, 2025 Corrective Action Plan In order to complete the audit on time for FY26, finance staff and auditors will create a detailed plan of which items are due at specific dates to ensure auditors have the information needed with enough time to complete the audit on time. 6/30/2026 Refresher training will be completed by 1/31/2026. Targeted second party reviews, pending logs, staffing for case extensions will begin 2/1/2026. Section IV - State Award Findings and Questioned Costs Corrective Action Plan for Finding 2025-003 also apply to State Award Findings. The County has implemented procedures to ensure reconciliation of records are done timely. In addition to assigning specific accounts to individuals best suited to reconciling them, the management staff will verify reconciliations are completed on time. 5/1/2026 141

View Audit 397575

Finding 1205827 (2025-009)

Material Weakness 2025

Dillard University

LA

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.430

Payroll The University acknowledges the finding related to discrepancies between payroll charges, personnel action forms, and time and effort reporting. We understand the requirement that all salary and wage charges to federal awards must be supported by accurate records and internal controls in acc...

Payroll The University acknowledges the finding related to discrepancies between payroll charges, personnel action forms, and time and effort reporting. We understand the requirement that all salary and wage charges to federal awards must be supported by accurate records and internal controls in accordance with Uniform Guidance §200.430. Corrective Actions 1. Alignment of Personnel Actions and Payroll Distribution: The University will implement additional review steps to ensure that labor distribution reports match the approved personnel action forms before payroll is charged to the grant. Any discrepancies must now be corrected before processing. 2. Strengthened Time and Effort Verification: Time and effort reports must now be reviewed and reconciled against the percentages authorized on personnel action forms. Reports that do not match will be returned to departments for correction before certification. 3. Enhanced Internal Controls and Documentation: A standardized monthly reconciliation process will be established to ensure consistency between personnel records, effort reporting, and payroll charges. 4. Staff Training: Training will be provided to fiscal managers, the Office of Research and Sponsored Programs, human resources, and payroll personnel on Uniform Guidance requirements, proper effort reporting, and documentation standards. 5. Periodic Monitoring: Supervisory reviews will be conducted to ensure continued compliance and to identify discrepancies proactively. The University believes these corrective measures will strengthen internal controls and ensure that payroll charges to federal programs are accurate, allowable, and properly documented.

View Audit 397569

Finding 1205821 (2025-005)

Material Weakness 2025

Dillard University

LA

Student Financial Aid Questioned Costs Subrecipient Monitoring

Pell Grant Calculations The University acknowledges the finding regarding errors in Pell Grant calculations for Summer 2025. We acknowledge the importance of ensuring that Pell Grant awards are calculated accurately in accordance with federal regulations. Corrective Actions 1. Immediate Corrections:...

Pell Grant Calculations The University acknowledges the finding regarding errors in Pell Grant calculations for Summer 2025. We acknowledge the importance of ensuring that Pell Grant awards are calculated accurately in accordance with federal regulations. Corrective Actions 1. Immediate Corrections: The University has reviewed the affected student accounts and has processed the remaining Pell funds owed to each student. 2. Strengthened Review Controls: A secondary review process has been implemented to verify Pell Grant calculations prior to disbursement, including confirmation of enrollment status, cost of attendance, and formula application. 3. Staff Training: Financial Aid staff are receiving additional training on Pell awarding requirements and payment schedule usage to ensure the correct application of formulas. 4. Broader File Review: The University is conducting a wider review of Pell disbursements outside the audit sample to identify and correct any similar errors. The University believes these actions will prevent future calculation errors and ensure ongoing compliance with federal regulations.

View Audit 397569

Finding 1205819 (2025-003)

Material Weakness 2025

Dillard University

LA

Student Financial Aid Subrecipient Monitoring Questioned Costs

Annual and Aggregate Loan Limits The University acknowledges the finding regarding the awarding of unsubsidized loan funds in excess of annual limits without adequate supporting documentation. We recognize that federal regulations require either a valid PLUS denial or fully documented professional j...

Annual and Aggregate Loan Limits The University acknowledges the finding regarding the awarding of unsubsidized loan funds in excess of annual limits without adequate supporting documentation. We recognize that federal regulations require either a valid PLUS denial or fully documented professional judgment to support additional unsubsidized eligibility. Corrective Actions 1. Strengthened Documentation Requirements: Effective immediately, financial aid staff will maintain complete professional judgment documentation, including the rationale, supporting evidence, and approval, in the student’s file before any additional unsubsidized loan is awarded. 2. Verification Controls: A mandatory checklist has been implemented to ensure that a PLUS denial or documented professional judgment is obtained and reviewed prior to disbursement of any loan amount exceeding standard limits. 3. Staff Training: The Office of Financial Aid will conduct targeted training to reinforce Title IV loan limit rules and proper documentation standards. 4. Ongoing Monitoring: Supervisory review will be performed on all professional judgment decisions and on any loan increases exceeding the standard $2,000 annual limit. The University believes these corrective measures will address the root cause of the finding and ensure full compliance with federal loan regulations going forward.

View Audit 397569

Finding 1205818 (2025-002)

Material Weakness 2025

Dillard University

LA

Subrecipient Monitoring Questioned Costs Student Financial Aid

Student Status Confirmation Report The University acknowledges the finding regarding the timeliness of providing required reports to support audit testing of student enrollment status. We recognize the importance of accurate and timely reporting to the student status confirmation process and regret ...

Student Status Confirmation Report The University acknowledges the finding regarding the timeliness of providing required reports to support audit testing of student enrollment status. We recognize the importance of accurate and timely reporting to the student status confirmation process and regret that the requested documentation was not supplied within the audit timeframe. Corrective Actions Taken / Planned 1. Process Redesign and Timeliness Controls The University has implemented revised internal procedures to ensure that all requested enrollment reports are generated promptly. This includes establishing defined timelines for responding to audit requests and assigning responsibility to specific staff members to track and manage reporting obligations. 2. System and Reporting Enhancements We are reviewing and updating our reporting workflow within our student information system to strengthen data retrieval capabilities and reduce delays in report generation. Additional user training will be provided to ensure staff can efficiently extract the required information. 3. Improved Communication With the Guaranty Agency The University will review past enrollment status submissions and implement additional checks to ensure that future enrollment reporting to the guaranty agency is complete, accurate, and timely. A 45-day reconciliation process has been added to verify that all required status updates have been transmitted. 4. Ongoing Monitoring The University has established ongoing oversight to ensure consistent compliance with reporting requirements. Internal reviews will be performed periodically to confirm that corrective actions remain effective. Management Conclusion We believe these measures will address the root causes identified in the finding and will ensure the timely delivery of required information for future audits. The University is committed to maintaining full compliance with federal and state reporting standards.

View Audit 397569

Finding 1205807 (2025-001)

Material Weakness 2025

Cleveland Supported Housing INC

TX

Questioned Costs HUD Housing Programs Reporting

Audit Finding 2025-001: Management fees for the year ended December 31, 2025 were paid in excess of the monthly per unit per month cap. - Management miscalculated the management fees for the year ended December 31, 2025, and hence, fees were paid in excess of the cap by $4,452. A receivable was reco...

Audit Finding 2025-001: Management fees for the year ended December 31, 2025 were paid in excess of the monthly per unit per month cap. - Management miscalculated the management fees for the year ended December 31, 2025, and hence, fees were paid in excess of the cap by $4,452. A receivable was recorded for the overpaid management fees at December 31, 2025. The excess fees were refunded to the Project on March 12, 2026. - Name and Title of contact person responsible for corrective action: -Steve Colella, Making a Difference in Property Management, LLC - Management Agent - 6800 Park Ten Blvd, Ste 184-W - San Antonio, TX 78213

View Audit 397556

Finding 1205805 (2025-002)

Material Weakness 2025

Independence Communities INC

TX

Questioned Costs HUD Housing Programs Reporting

Management fees for the year ended December 31, 2025 were paid in excess of the monthly per unit per month cap. - Management miscalculated the management fees for the year ended December 31, 2025, and hence, fees were paid in excess of the cap by $2,629. A receivable was recorded for the overpaid ma...

Management fees for the year ended December 31, 2025 were paid in excess of the monthly per unit per month cap. - Management miscalculated the management fees for the year ended December 31, 2025, and hence, fees were paid in excess of the cap by $2,629. A receivable was recorded for the overpaid management fees at December 31, 2025. The excess fees were refunded to the Project on March 13, 2026.

View Audit 397551

Finding 1205804 (2025-001)

Material Weakness 2025

Independence Communities INC

TX

Questioned Costs Reporting Matching / Level of Effort / Earmarking

The monthly deposit for repayment of loan from the replacement reserve was not done for December 2025. - The correcting deposit was made on February 11, 2026.

View Audit 397551

Finding 1205803 (2025-005)

Material Weakness 2025

Lane Regional Medical Center

LA

Questioned Costs

The Organization concurs with the recommendation, and notes that accounting department turnover limited resources during the year. As vacant roles have been filled, we do not anticipate a recurrence of this condition. We are now in the process of evaluating and revising our existing reconciliation p...

The Organization concurs with the recommendation, and notes that accounting department turnover limited resources during the year. As vacant roles have been filled, we do not anticipate a recurrence of this condition. We are now in the process of evaluating and revising our existing reconciliation processes necessary to be consistent with available staffing resources. Anticpated Completion Date: June 30, 2026

View Audit 397550

Finding 1205799 (2025-002)

Material Weakness 2025

Western States Air Resources Council

NM

Matching / Level of Effort / Earmarking Questioned Costs Subrecipient Monitoring § 200.400 § 200.68

2025-002 Corrective Action: We will correct the application of indirect costs and reduce the very next future request for reimbursement by the overcharged indirect costs. We have also changed the circumstances that caused the limitation to be overlooked related to this specific contract.

View Audit 397529

Finding 1205766 (2025-003)

Material Weakness 2025

Hampton University

VA

Eligibility Reporting Matching / Level of Effort / Earmarking

Corrective Action: The University agrees with the findings. The project Directors will continue to validate data input into the system prior to the submission of the APR. We will establish a cut-off date for rolling the system fmward to prevent these administrative clerical errors. Contact Person: M...

Corrective Action: The University agrees with the findings. The project Directors will continue to validate data input into the system prior to the submission of the APR. We will establish a cut-off date for rolling the system fmward to prevent these administrative clerical errors. Contact Person: Mikael Davis, SSS Director And Dr Ferguson Gregg, Upward Bound Director Anticipated Completion Date: June 15, 2026

View Audit 397505

Finding 1205758 (2025-002)

Material Weakness 2025

ILEARN SCHOOLS, INC.

NJ

Questioned Costs Allowable Costs / Cost Principles Cash Management § 200.305 § 200.403 § 200.414

iLearn Schools, Inc. notes that the excess reimbursement of $85,425 was identified, properly recorded as a grant advance liability, and not recognized as revenue or expense in the current year. Going forward, all reimbursement requests will be based on actual allowable direct costs incurred. Managem...

iLearn Schools, Inc. notes that the excess reimbursement of $85,425 was identified, properly recorded as a grant advance liability, and not recognized as revenue or expense in the current year. Going forward, all reimbursement requests will be based on actual allowable direct costs incurred. Management will establish written procedures for indirect cost recovery, implement a formal review and reconciliation process prior to submission, and provide staff training on Uniform Guidance requirements. These corrective actions will be in place for the fiscal year ending June 30, 2026. Responsible Official: Mr. Coban, Chief Financial Officer

View Audit 397494

Finding 1205738 (2025-009)

Material Weakness 2025

Northampton County

NC

Eligibility Internal Control / Segregation of Duties Questioned Costs

Corrective Action Plan For the Year Ended June 30, 2025 NorthamptoN CouNty Finance Department 9467 Hwy 305 Jackson, North Carolina 27845 Leslie Edwards Finance Director Finding 2025-009 Inaccurate Information Entry Name of contact: Sammantha Thomas, Program Manager Corrective Action: Proposed Comple...

Corrective Action Plan For the Year Ended June 30, 2025 NorthamptoN CouNty Finance Department 9467 Hwy 305 Jackson, North Carolina 27845 Leslie Edwards Finance Director Finding 2025-009 Inaccurate Information Entry Name of contact: Sammantha Thomas, Program Manager Corrective Action: Proposed Completion Date: Corrective Actions for finding 2025-010 also apply to State Award findings. Section IV - State Award Findings and Question Costs Section III - Federal Award Findings and Question Costs The program manager held a staff meeting to discuss audit results and all errors. The Program Manager will be requiring policy training for all Medicaid supervisors and caseworkers. The program manager will have another staff meeting to discuss new procedures for caseworkers and supervisors. New actions for caseworkers will include a new detailed checklist that will be reviewed by a lead worker or supervisor when requesting information for cases that result in a termination, reduction or denial. Additionally, all caseworkers will be responsible for generating a report of all outstanding and overdue reviews and will prioritize cases nearing compliance deadlines. New actions for Supervisors will include a review of all cases completed by new employees. Currently second party reviews are being completed on five cases weekly per caseworker, however, going forward this will be increased to 8-10 cases weekly per caseworker. Additionally, supervisors will be responsible for implementing a real-time tracking log for review due dates, review timeliness of these reports daily, and supervisors will meet with the Program Manager monthly to report timeliness metrics. Supervisors and staff will be required to complete yearly policy training provided by the Program Manager to ensure they are clear on review timelines and accuracy. A meeting with all staff and supervisors was held on 2/25/2026 to discuss the findings of the Audit. All trainings will be completed no later than 3/31/2026. All new requirements by the program manager will be implemented immediately. 156

View Audit 397461

Corrective Action Plans

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