Corrective Action Plans

Finding 1201237 (2025-001)

Material Weakness 2025

Northern Arizona Intergovernmental Public Transportation Authority

AZ

Cash Management Reporting Questioned Costs

Finding Number: 2025‐001 Program Name/Assistance Listing Title: Federal Transit Cluster Assistance Listing Numbers: 20.507, 20.526 Contact Person: Megan Coons, Finance Director Anticipated Completion Date: March 31, 2026 Planned Corrective Action: The Authority has implemented a dual‐review process ...

Finding Number: 2025‐001 Program Name/Assistance Listing Title: Federal Transit Cluster Assistance Listing Numbers: 20.507, 20.526 Contact Person: Megan Coons, Finance Director Anticipated Completion Date: March 31, 2026 Planned Corrective Action: The Authority has implemented a dual‐review process requiring preparation of reimbursement requests by staff and independent review and approval by a second authorized individual in a higher level management role. Reconciliations of reimbursement requests are to be completely monthly and will include detailed expenditure reports and grant agreement references to ensure requests match appropriately to Federal expenditures. Additionally, The Authority will implement mandatory training for all staff involved in grant management on Federal compliance requirements, documentation standards, and internal control procedures.

View Audit 395898

Finding 1201234 (2025-007)

Material Weakness 2025

City of Boston

MA

Questioned Costs Special Tests & Provisions Procurement, Suspension & Debarment

Student Support and Academic Enrichment – Assistance Listing No. 84.424 Recommendation: We recommend Boston Public Schools review and enhance internal controls and procedures to ensure that they retain copies of correspondence with private schools to ensure completeness and accuracy of the calculati...

Student Support and Academic Enrichment – Assistance Listing No. 84.424 Recommendation: We recommend Boston Public Schools review and enhance internal controls and procedures to ensure that they retain copies of correspondence with private schools to ensure completeness and accuracy of the calculation. Action taken in response to finding: In August 2025, Boston Public Schools developed and implemented a revised policy on equitable services that ensures that all communication is stored in a centralized folder for standard reviews. Name(s) of the contact person(s) responsible for corrective action: Marcela Mahecha, Director of Federal & State Grants, Programs, and Compliance Boston Public Schools Planned completion date for corrective action plan: August 31, 2025

View Audit 395895

Finding 1201233 (2025-006)

Material Weakness 2025

City of Boston

MA

Questioned Costs Special Tests & Provisions Procurement, Suspension & Debarment

English Language Acquisition State Grants – Assistance Listing No. 84.365 Recommendation: We recommend Boston Public Schools review and enhance internal controls and procedures to ensure that they retain copies of correspondence with private schools to ensure completeness and accuracy of the calcula...

English Language Acquisition State Grants – Assistance Listing No. 84.365 Recommendation: We recommend Boston Public Schools review and enhance internal controls and procedures to ensure that they retain copies of correspondence with private schools to ensure completeness and accuracy of the calculation. Action taken in response to finding: In August 2025, Boston Public Schools developed and implemented a revised policy on equitable services that ensures that all communication is stored in a centralized folder for standard reviews. Name(s) of the contact person(s) responsible for corrective action: Marcela Mahecha, Director of Federal & State Grants, Programs, and Compliance Boston Public Schools Planned completion date for corrective action plan: August 31, 2025

View Audit 395895

Finding 1201230 (2025-003)

Material Weakness 2025

City of Boston

MA

Questioned Costs Special Tests & Provisions HUD Housing Programs

Housing Opportunities for Persons with Aids – Assistance Listing No. 14.241 Recommendation: We recommend the Mayor’s Office of Housing review and enhance internal controls and procedures to ensure that required inspections are performed timely. Action taken in response to finding: The Mayor’s Office...

Housing Opportunities for Persons with Aids – Assistance Listing No. 14.241 Recommendation: We recommend the Mayor’s Office of Housing review and enhance internal controls and procedures to ensure that required inspections are performed timely. Action taken in response to finding: The Mayor’s Office of Housing, as the HOPWA Grantee, identifies deficiencies in timely completions and documentations of HQS inspections performed by the project sponsor. The sponsor has now fully transitioned to using the Yardi system for property management activities, which will enhance inspection tracking and reporting, and has established monthly inspection monitoring reports to identify upcoming or past-due inspections. These corrective actions address the cause of missing yearly inspections and strengthen internal controls for ongoing compliance. The Mayor’s Office of Housing will ensure continued compliance through quarterly reviews of HQS inspection reports (submitted by the sponsor) and complete targeted file monitoring to verify timely completion and documentation, including any deficiency corrections. Name(s) of the contact person(s) responsible for corrective action: Kiarah Perdomenico, Housing Development Officer HOPWA program manager Planned completion date for corrective action plan: April 3, 2026

View Audit 395895

Finding 1201229 (2025-002)

Material Weakness 2025

City of Boston

MA

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring

Economic Development Cluster - Assistance Listing No. 11.307 Recommendation: We recommend the Mayor’s Office of Workforce Development develop procedures and internal controls to ensure that all required subawards are reported timely and accurately to SAM.gov no later than the end of the month follow...

Economic Development Cluster - Assistance Listing No. 11.307 Recommendation: We recommend the Mayor’s Office of Workforce Development develop procedures and internal controls to ensure that all required subawards are reported timely and accurately to SAM.gov no later than the end of the month following the month of issuance of each subaward. Action taken in response to finding: The City has implemented a more timely FFATA review and submission procedure in FY25/FY26, however due to this award having been transferred from another organization this was not able to be submitted on Sam.gov. The City made multiple attempts to have the award updated in the system but due to this program ending, there was no contact available to remedy this issue. Name(s) of the contact person(s) responsible for corrective action: Colin Musto, Assistant City Auditor Planned completion date for corrective action plan: March 1, 2026

View Audit 395895

Finding 1201192 (2025-008)

Material Weakness 2025

Town of Greenwich, Connecticut

CT

Questioned Costs Material Weakness Reporting

2024-008 Material Weakness and Noncompliance, Reporting (Repeat Finding 2024-008) Audit Finding: The Town improperly included encumbrances in expenditures on three of four quarterly reports due to a lack of understanding of reporting requirements (ARPA). As this was identified at the end of FY25, th...

2024-008 Material Weakness and Noncompliance, Reporting (Repeat Finding 2024-008) Audit Finding: The Town improperly included encumbrances in expenditures on three of four quarterly reports due to a lack of understanding of reporting requirements (ARPA). As this was identified at the end of FY25, the fourth quarter report properly excluded encumbrances and reflected correction of this issue. Corrective Action Taken: As noted above and in this report, this was corrected as soon as we became aware of the issue, for fourth quarter reporting in FY25 and continues going forward. Anticipated Completion Date: In Process as of April 2025. Name and Phone # of Person Responsible for Implementation Joan Lynch, Comptroller, 203-622-2226

View Audit 395857

Finding 1201160 (2025-002)

Material Weakness 2025

North Central Kansas Special Education Cooperative Interlocal #636

KS

Allowable Costs / Cost Principles Questioned Costs

Special Education (IDEA) Cluster – 84.027 – Special Education – Grants to States – Activities Allowed or Unallowed and Unallowable Costs/Cost Principles Condition Supporting documentation for tuition reimbursements did not include a receipt showing the cost per credit hour, which is required to be s...

Special Education (IDEA) Cluster – 84.027 – Special Education – Grants to States – Activities Allowed or Unallowed and Unallowable Costs/Cost Principles Condition Supporting documentation for tuition reimbursements did not include a receipt showing the cost per credit hour, which is required to be submitted as part of its contract with its employees. Recommendation Procedures should be established and implemented to ensure that all supporting documentation be obtained and saved. Comments on the Finding Recommendation NCKSEC agrees with the findings. A procedure has been put in place to assure that receipts are collected from teachers reflecting the cost per credit hour for the amount the teacher is reimbursed. Receipts are collected before payment is issued. Action Taken Receipts are being collected before payment is issued as reimbursement per credit hour. This action began at the start of the 2025-2026 school year.

View Audit 395854

Finding 1201144 (2025-001)

Material Weakness 2025

Tca Health, Inc.

IL

Questioned Costs Eligibility Special Tests & Provisions

Special Tests and Provisions Condition: The Organization did not maintain documentation to show that patients had been evaluated for eligibility under its sliding fee scale policy and did not apply sliding fee adjustments consistent with the sliding fee scale assigned. Recommendation: Management sho...

Special Tests and Provisions Condition: The Organization did not maintain documentation to show that patients had been evaluated for eligibility under its sliding fee scale policy and did not apply sliding fee adjustments consistent with the sliding fee scale assigned. Recommendation: Management should continue to provide training and education to front desk staff related to the process for collecting family size and income information, along with inputting it into the electronic medical records. We also recommend enhancing any current internal audits of patient visits to determine all required patient information has been obtained in accordance with TCA’s policies. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: TCA Health is strengthening controls over its sliding fee discount program. Effective FY26 (April 11, 2026), Epic will require entry of family size and income and will apply the appropriate discount based on the approved sliding fee schedule, reducing the risk of missing or incorrect discounts. Staff training on sliding fee policies and Epic workflows has been reinforced and will be refreshed at least quarterly. TCA Health will also conduct monthly audits of encounters to confirm required documentation is on file and discounts are applied in accordance with the sliding fee scale, and will use results to drive targeted follow-up and process improvements. We will increase the audit to include the total population vs. a sample when reviewing. Name(s) of the contact person(s) responsible for corrective action: Samantha O. Mitchell Planned completion date for corrective action plan: 9/1/26

View Audit 395842

Finding 1201009 (2025-006)

Material Weakness 2025

Cal State L.a. University Auxiliary Services, Inc.

CA

Matching / Level of Effort / Earmarking Questioned Costs Subrecipient Monitoring

Management will strengthen internal controls to ensure compliance with grant requirements related to level of effort and changes in key personnel. Management will review all active grant agreements to identify and document requirements related to level of effort and key personnel designations. A mon...

Management will strengthen internal controls to ensure compliance with grant requirements related to level of effort and changes in key personnel. Management will review all active grant agreements to identify and document requirements related to level of effort and key personnel designations. A monitoring process will be implemented to track personnel assignments and effort charged to federal grants to ensure compliance with grant requirements. Any proposed changes in key personnel or significant changes in level of effort will be reviewed by the Grants Management staff prior to implementation. When required by the grant terms, written approval will be obtained from the grant agency before any changes to key personnel or level of effort are made. Contact person responsible for corrective action: Lynne Duong, Compliance and Risk Manager Anticipated completion date: June 30, 2026

View Audit 395832

Finding 1201002 (2025-005)

Material Weakness 2025

Cal State L.a. University Auxiliary Services, Inc.

CA

Subrecipient Monitoring Reporting Questioned Costs

Management agrees with the finding and acknowledges that a significant deficiency was identified related to report submission delay. To prevent this issue from recurring, we are implementing several corrective actions. These include establishing a stricter communication schedule with Post Award Admi...

Management agrees with the finding and acknowledges that a significant deficiency was identified related to report submission delay. To prevent this issue from recurring, we are implementing several corrective actions. These include establishing a stricter communication schedule with Post Award Administrators to ensure timely submission of reports and strengthening of our internal monitoring procedures by tracking submission deadlines more closely. Contact person responsible for corrective action: Lynne Duong, Compliance and Risk Manager Anticipated completion date: June 30, 2026

View Audit 395832

Finding 1200840 (2025-010)

Material Weakness 2025

State of New Jersey

NJ

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring

Disaster Grants –Public Assistance (Presidentially Declared Disasters) (97.036) COVID-19 Disaster Grants –Public Assistance (Presidentially Declared Disasters) (97.036) State Agency: Department of Law and Public Safety Federal Agency: U.S. Department of Homeland Security Disaster Grants –Public Assi...

Disaster Grants –Public Assistance (Presidentially Declared Disasters) (97.036) COVID-19 Disaster Grants –Public Assistance (Presidentially Declared Disasters) (97.036) State Agency: Department of Law and Public Safety Federal Agency: U.S. Department of Homeland Security Disaster Grants –Public Assistance (Presidentially Declared Disasters) (97.036) COVID-19 Disaster Grants –Public Assistance (Presidentially Declared Disasters) (97.036) State Agency: Department of Law and Public Safety Federal Agency: U.S. Department of Homeland Security Reporting - Federal Funding Accountability and Transparency Act (FFATA) VIEWS OF RESPONSIBLE OFFICIALS AND CORRECTIVE ACTION PLAN The Department of Law and Public Safety (DLPS) acknowledges that certain FFATA reports for awards obligated in prior fiscal years were not submitted on time due to technical issues with the FEMA system, which prevented timely reporting. These technical issues have since been resolved. The DLPS has been in full compliance with FFATA reporting requirements since August 2024. COMPLETION DATE/ CONTACT PERSON & PHONE# Fiscal Year 2024 and Ongoing Salvatore Marcello (609) 882-2000 ext.3046 Salvatore.Marcello@njsp.gov

View Audit 395830

Finding 1200838 (2025-009)

Material Weakness 2025

State of New Jersey

NJ

Procurement, Suspension & Debarment Cash Management Reporting

Block Grants for Prevention and Treatment of Substance Abuse (93.959) COVID-19 –Block Grants for Prevention and Treatment of Substance Abuse (93.959) State Agency: Department of Human Services Federal Agency: U.S. Department of Health and Human Services Reporting – Federal Funding Accountability and...

Block Grants for Prevention and Treatment of Substance Abuse (93.959) COVID-19 –Block Grants for Prevention and Treatment of Substance Abuse (93.959) State Agency: Department of Human Services Federal Agency: U.S. Department of Health and Human Services Reporting – Federal Funding Accountability and Transparency Act (FFATA) VIEWS OF RESPONSIBLE OFFICIALS AND CORRECTIVE ACTION PLAN The Department of Human Services, Division of Mental Health and Addiction Services (DMHAS) does not dispute the FFATA upload dates for three (3) of the thirteen (13) subawards tested, but it disputes that such uploads were untimely. One subaward was uploaded only seven (7) days late. DMHAS submits that it substantially complied, no finding should issue and no corrective action is required in that instance. The two (2) remaining awards at issue were funded with the ARPA Block Grant. On March 24, 2025, U.S. DHHS took unprecedented action and issued a notice of early termination of ARPA funding, purportedly for cause because the Covid-19 health emergency had ended. The notice of early termination and subsequent, revised Notice of Award (NOA), required DMHAS to cease all activities. It also sought to revise the original grant terms, retroactive to the original September 1, 2021 project start date. By way of example, the revised NOA also includes new conditions and certifications required to draw down federal funds. DMHAS complied with the notice of early termination and immediately ceased all activities; it stopped issuing subaward letters, it ceased all subaward uploads into its Contract Information Management System, it stopped all reimbursements, and it stopped all FFATA uploads pending or in process. Also in response to the abrupt early termination of funding, DMHAS issued “stop work” orders to all impacted agencies and advised that there was no assurance of reimbursement as of the effective date of notice. Shortly thereafter, DMHAS joined numerous other State authorities and filed a formal complaint in federal district court, alleging that the early termination was unlawful and caused the States irreparable harm. On April 5, 2025, the court entered a temporary injunction and scheduled a hearing for preliminary injunctive relief. U.S. DHHS moved for reconsideration. Several weeks later, the Court entered a preliminary injunction enjoining the enforcement of the early termination of ARPA until further order of the Court. The cessation of FFATA uploads from the March termination to the receipt of injunctive relief was necessary to: 1. Maintain strict compliance with the revised NOA terms and conditions, including the written obligation to cease all activities; 2. Maintain strict compliance with the revised NOA terms and conditions, by issuing “stop work” orders; 3. Ensuring DMHAS’s “stop work” orders were not superseded by FFATA uploads or USA.Spending publications while the request for injunctive relief was pending, so no individual or entity (including the US Office of the Attorney General, US DHHS, or subawardee) could construe the upload as renewed authority to continue to expend funds through subaward end date; 4. Fully protect the prosecution of DMHAS’s claims in the pending, federal litigation, as well as DMHAS’s defenses; and 5. Mitigate DMHAS and subawardee damages in the underlying litigation. Based on the unprecedented early termination of block grant funding and ensuing litigation, DMHAS submits that the timeline to complete FFATA uploads was stayed. Such determination is consistent with the Court’s preliminary injunction, which makes clear that U.S. DHHS immediately treat any actions taken to implement or enforce the early funding terminations, as null and void and rescinded. Therefore, DMHAS should not be issued a FFATA finding that relates directly to the revised NOAs or the direction to cease all activities, and under these extraordinary circumstances, the uploads in question should be classified as non-reportable and immaterial, with no corrective action required. COMPLETION DATE/ CONTACT PERSON & PHONE# January 1,2025 Gordon Horvath, CFO (609) 544-6817 Gordon.Horvath@dhs.nj.gov John Fogliano, Deputy CFO (609) 438-4278 John.Fogliano@dhs.nj.gov

View Audit 395830

Finding 1200835 (2025-007)

Material Weakness 2025

State of New Jersey

NJ

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring

Child Care and Development Fund Cluster (93.575, 93.596) COVID-19 Child Care and Development Fund Cluster (93.575, 93.596) State Agency: Department of Human Services Federal Agency: U.S. Department of Health and Human Services Reporting – Federal Financial Accountability and Transparency Act (FFATA)...

Child Care and Development Fund Cluster (93.575, 93.596) COVID-19 Child Care and Development Fund Cluster (93.575, 93.596) State Agency: Department of Human Services Federal Agency: U.S. Department of Health and Human Services Reporting – Federal Financial Accountability and Transparency Act (FFATA) VIEWS OF RESPONSIBLE OFFICIALS AND CORRECTIVE ACTION PLAN The New Jersey Department of Human Services’ Division of Family Development (DHD/DFD) has taken significant steps to ensure the effective management of FFATA (Federal Funding Accountability and Transparency Act) data. DHD/DFD has appointed qualified personnel dedicated to the accurate reporting of FFATA information. All appointed personnel have undergone comprehensive training programs designed to equip them with the knowledge and skills required for accurate entry and maintenance of FFATA data. DHD/DFD and its internal units will work in close coordination to manage, review, and validate FFATA submissions. COMPLETION DATE/ CONTACT PERSON June 30, 2026 Robert Hughes (609) 584-4041 Robert.Hughes@dhs.nj.gov

View Audit 395830

Finding 1200833 (2025-006)

Material Weakness 2025

State of New Jersey

NJ

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring

Temporary Assistance for Needy Families (93.558) State Agency: Department of Human Services Federal Agency: U.S. Department of Health and Human Services Reporting – Federal Financial Accountability and Transparency Act (FFATA) VIEWS OF RESPONSIBLE OFFICIALS AND CORRECTIVE ACTION PLAN The New Jersey ...

Temporary Assistance for Needy Families (93.558) State Agency: Department of Human Services Federal Agency: U.S. Department of Health and Human Services Reporting – Federal Financial Accountability and Transparency Act (FFATA) VIEWS OF RESPONSIBLE OFFICIALS AND CORRECTIVE ACTION PLAN The New Jersey Department of Human Services’ Division of Family Development (DHD/DFD) has taken significant steps to ensure the effective management of FFATA (Federal Funding Accountability and Transparency Act) data. DHD/DFD has appointed qualified personnel dedicated to the accurate reporting of FFATA information. All appointed personnel have undergone comprehensive training programs designed to equip them with the knowledge and skills required for the accurate entry and maintenance of FFATA data. DHD/DFD and its internal units will work in close coordination to manage, review, and validate FFATA submissions. COMPLETION DATE/ CONTACT PERSON June 30, 2026 Robert Hughes (609) 584-4041 Robert.Hughes@dhs.nj.gov

View Audit 395830

Finding 1200832 (2025-005)

Material Weakness 2025

State of New Jersey

NJ

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring

Covid-19 - Coronavirus Capital Projects Funds (21.029) State Agency: Department of Community Affairs Federal Agency: U.S. Department of the Treasury Reporting – Federal Funding Accountability and Transparency Act (FFATA) VIEWS OF RESPONSIBLE OFFICIALS AND CORRECTIVE ACTION PLAN The Department of Com...

Covid-19 - Coronavirus Capital Projects Funds (21.029) State Agency: Department of Community Affairs Federal Agency: U.S. Department of the Treasury Reporting – Federal Funding Accountability and Transparency Act (FFATA) VIEWS OF RESPONSIBLE OFFICIALS AND CORRECTIVE ACTION PLAN The Department of Community Affairs (DCA) has effectively executed a comprehensive corrective action plan to address and rectify findings related to the Federal Funding Accountability and Transparency Act (FFATA). The issue of late FFATA submissions was originally identified in the Single Audit for fiscal year 2024. In recognition of the overlap, DCA undertook all necessary updates and enhancements to its reporting processes prior to the fiscal year 2025 audit. The findings persisted into fiscal year 2025 due to the inability to make retroactive changes in SAM.gov for past updates. To mitigate this, the department has implemented robust protocols and systems designed to ensure the accuracy and timeliness of future financial disclosures, thereby preventing the recurrence of similar issues. COMPLETION DATE/ CONTACT PERSON & PHONE# June 01, 2025 Vera Ricciardi 609-930-1479 VeraEllen.Ricciardi@dca.nj.gov

View Audit 395830

Finding 1200828 (2025-003)

Material Weakness 2025

State of New Jersey

NJ

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring

Workforce Innovation and Opportunity Act (WIOA) Cluster (17.258, 17.259, 17.278) State Agency: Department of Labor and Workforce Development Federal Agency: U.S. Department of Labor Reporting – Federal Funding Accountability and Transparency Act (FFATA) VIEWS OF RESPONSIBLE OFFICIALS AND CORRECTIVE ...

Workforce Innovation and Opportunity Act (WIOA) Cluster (17.258, 17.259, 17.278) State Agency: Department of Labor and Workforce Development Federal Agency: U.S. Department of Labor Reporting – Federal Funding Accountability and Transparency Act (FFATA) VIEWS OF RESPONSIBLE OFFICIALS AND CORRECTIVE ACTION PLAN The New Jersey Department of Labor and Workforce Development (DLWD) has transitioned from a manual contract agreement process to a web-based grant administration system using the System for Administering Grants Electronically (SAGE) and IntelliGrants (IGX) applications. The DLWD FFATA Reporting Unit accesses these automated systems and monitors them monthly to identify new Subaward contracts/agreements for timely reporting in the FFATA system. Additionally, the DLWD Fiscal & Accounting Division will complete the full implementation of this transition by developing stronger internal controls and procedures to ensure that all required subawards are reported no later than the end of the month following issuance, in accordance with FFATA reporting requirements. COMPLETION DATE/ CONTACT PERSON July 31, 2026 Ahmanish Robinson (609) 984-4356 Ahmanish.Robinson@dol.nj.gov Theresa Vallely (609) 984-1779 Theresa.Vallely@dol.nj.gov

View Audit 395830

Finding 1200825 (2025-002)

Material Weakness 2025

State of New Jersey

NJ

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring

Community Development Block Grants Disaster Recovery (14.269, 14.272) State Agency: Department of Community Affairs Federal Agency: U.S. Department of Housing and Urban Development Reporting – Federal Funding Accountability and Transparency Act (FFATA) VIEWS OF RESPONSIBLE OFFICIALS AND CORRECTIVE A...

Community Development Block Grants Disaster Recovery (14.269, 14.272) State Agency: Department of Community Affairs Federal Agency: U.S. Department of Housing and Urban Development Reporting – Federal Funding Accountability and Transparency Act (FFATA) VIEWS OF RESPONSIBLE OFFICIALS AND CORRECTIVE ACTION PLAN The Department of Community Affairs (DCA) acknowledges prior instances of delayed reporting for subawards under the Federal Funding Accountability and Transparency Act (FFATA). The most recent subaward reviewed under the FY 2025 single audit for compliance occurred in November 2021. Subsequent to this audit, DCA has undertaken and completed a thorough revision of its policies and procedures to enhance both accountability and transparency.Following these updates, DCA is currently in full compliance with all aspects of FFATA, including those related to timeliness. Additionally, DCA is committed to the continuous review and enhancement of its processes to maintain alignment with all federal requirements, thereby reinforcing its dedication to upholding the highest standards of compliance and reporting accuracy. COMPLETION DATE/ CONTACT PERSON June 01, 2025 Vera Ricciardi 609-930-1479 VeraEllen.Ricciardi@dca.nj.gov

View Audit 395830

Finding 1200822 (2025-001)

Material Weakness 2025

Farmington Central Cusd No. 265

IL

Internal Control / Segregation of Duties Questioned Costs Cash Management

Condition: The same individual is responsible for preparing and submitting monthly reimbursement claims for the Child Nutrition Program without an independent review or approval prior to submission. Plan: A second person (Superintendent) compares the meal counts in the claim to the Skyward daily mea...

Condition: The same individual is responsible for preparing and submitting monthly reimbursement claims for the Child Nutrition Program without an independent review or approval prior to submission. Plan: A second person (Superintendent) compares the meal counts in the claim to the Skyward daily meal count reports, monthly participation summary, eligibility rosters (free, reduced, paid) and USDA reimbursement rates. The reviewer will then sign and date a reconciliation sheet before submission.

View Audit 395827

Finding 1200815 (2025-003)

Material Weakness 2025

Avila University

MO

Cash Management Questioned Costs Reporting

Management is responsible for submitting accurate information when requesting federal funds to maintain compliance with reporting requirements. Personnel Responsible for Corrective Action: Josh Dining, Controller Anticipated Completion Date: Corrective action plan will be implemented by June 30, 202...

Management is responsible for submitting accurate information when requesting federal funds to maintain compliance with reporting requirements. Personnel Responsible for Corrective Action: Josh Dining, Controller Anticipated Completion Date: Corrective action plan will be implemented by June 30, 2026. Corrective Action Plan – Management will update practices and implement procedures to ensure that only actual incurred costs will be included on the request for reimbursement forms on a go-forward basis.

View Audit 395824

Finding 1200814 (2025-002)

Material Weakness 2025

Avila University

MO

Student Financial Aid Questioned Costs Special Tests & Provisions

Management is responsible for ensuring accurate and timely reporting of enrollment data to the appropriate governmental authorities. Personnel Responsible for Corrective Action: Josh Dining, Controller Anticipated Completion Date: Corrective action plan will be implemented by June 30, 2026. Correcti...

Management is responsible for ensuring accurate and timely reporting of enrollment data to the appropriate governmental authorities. Personnel Responsible for Corrective Action: Josh Dining, Controller Anticipated Completion Date: Corrective action plan will be implemented by June 30, 2026. Corrective Action Plan – Management has provided training and is aware of the federal regulations surrounding enrollment reporting. The financial aid department will make regular updates to NSLDS on a monthly basis to ensure student information is reported accurately and timely.

View Audit 395824

Finding 1200807 (2025-003)

Material Weakness 2025

Rugby Public School District No. 5

ND

Allowable Costs / Cost Principles Questioned Costs Significant Deficiency

Contact Person – Mike McNeff, Superintendent Correcting Plan – The Superintendent and the Business Manager will work together to ensure that all expenditures incurred will follow internal control policies. Completion Data – June 30, 2026

View Audit 395817

Finding 1200806 (2025-003)

Material Weakness 2025

City of Detroit Water and Sewerage Department

MI

Subrecipient Monitoring Eligibility Material Weakness

Finding Number: 2025-003 Condition: The project description in the grant award specified that activities would be performed within disadvantaged opportunity zones. However, during the period of performance, DWSD incurred $4.1 million in expenditures related to lead service line replacements that wer...

Finding Number: 2025-003 Condition: The project description in the grant award specified that activities would be performed within disadvantaged opportunity zones. However, during the period of performance, DWSD incurred $4.1 million in expenditures related to lead service line replacements that were performed outside of those designated zones. At the time the costs were incurred, DWSD did not have controls in place to ensure that project activities continued to align with the geographic requirements of the award or to promptly notify the granting agency when activities could not be performed as originally planned. Planned Corrective Action: DWSD has since implemented geographical verification controls that incorporate grant standards, aligned checklists and policy updates. Pre-expenditure approval process will be strengthened including training. Contact person responsible for corrective action: Istakur Rahman Anticipated Completion Date: 6/30/2026

View Audit 395816

Finding 1200805 (2025-002)

Material Weakness 2025

City of Detroit Water and Sewerage Department

MI

Subrecipient Monitoring Questioned Costs Material Weakness

Finding Number: 2025-002 Condition: DWSD did not have controls in place to verify that required contract provisions were included in contracts executed under this award or to ensure receipt of weekly certified payroll records from all contractors. Planned Corrective Action: DWSD will improve contrac...

Finding Number: 2025-002 Condition: DWSD did not have controls in place to verify that required contract provisions were included in contracts executed under this award or to ensure receipt of weekly certified payroll records from all contractors. Planned Corrective Action: DWSD will improve contract provisional and certified payroll monitoring controls, as well as provide training on federal contract requirements. These improvements start with incorporating pre-execution compliance checklist and completing compliance reviews. In addition, formal standardized payroll submission process will be required weekly, where applicable. This process will include monitoring contractor payroll tracking logs, review and approvals, and payment controls for missing or inaccurate payroll documentation. Contact person responsible for corrective action: Istakur Rahman Anticipated Completion Date: 6/30/2026

View Audit 395816

Finding 1200793 (2025-004)

Material Weakness 2025

Solutionhealth, Inc.

NH

Questioned Costs Allowable Costs / Cost Principles Cash Management

Payroll Allocations: Criteria: Management was responsible for implementing policies and procedures to ensure salaries and wages reimbursable by the federal award are approved and submitted for reimbursement at appropriate amounts. Condition: During compliance testing, it was determined that certain ...

Payroll Allocations: Criteria: Management was responsible for implementing policies and procedures to ensure salaries and wages reimbursable by the federal award are approved and submitted for reimbursement at appropriate amounts. Condition: During compliance testing, it was determined that certain payroll expenses related to an employee whose wages are reimbursed by the federal award, were not properly allocated to the federal award. Context: Improper allocations of one employee's wages resulted in an under-allocation totaling $9,287 to the federal award during the year ended June 30, 2025. Cause: The allocation percentages were not appropriately updated in the underlying accounting system. Effect: As a result of the condition, the payroll expenses related to the federal award were under-reported during the year ended June 30, 2025. Questioned Costs: None. Repeat Finding: No. Recommendation: In the future, the System should implement appropriate processes and controls to ensure the underlying accounting system is updated timely and appropriately for changes in payroll allocations. Contact: Michael Hammond, Interim Health System Controller. Corrective Actions Taken or Planned: Management acknowledges the finding and ensure to implement appropriate processes and controls to update the system accordingly as needed.

View Audit 395806

Finding 1200792 (2025-003)

Material Weakness 2025

Solutionhealth, Inc.

NH

Questioned Costs Cash Management

Approval of Timecards: Criteria: Management was responsible for implementing policies and procedures to ensure salaries and wages reimbursable by the federal award are adequately documented, approved and submitted for reimbursement at appropriate amounts. Condition: During compliance testing, it was...

Approval of Timecards: Criteria: Management was responsible for implementing policies and procedures to ensure salaries and wages reimbursable by the federal award are adequately documented, approved and submitted for reimbursement at appropriate amounts. Condition: During compliance testing, it was determined that although certain timecards selected for testing did not contain inappropriate amounts, no evidence of approval was present which is a deviation in compliance with the above criteria. Context: Two out of fourteen total timecards that were selected for testing did not contain evidence of approval. Cause: The appropriate level of management did not approve the timecards. Effect: As a result of the condition, two out of fourteen total timecards that were selected for testing did not contain evidence of approval. Questioned Costs: None. Repeat Finding: No. Recommendation: In the future, the System should implement appropriate processes and controls to ensure all timecards are approved by the appropriate level of management. Contact: Michael Hammond, Interim Health System Controller. Corrective Actions Taken or Planned: Management acknowledges the finding and will ensure all timecards are approved in the future.

View Audit 395806

Corrective Action Plans

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