Corrective Action Plans

Finding 1187015 (2025-003)

Material Weakness 2025

ME

Questioned Costs Allowable Costs / Cost Principles Eligibility § 200.403 § 200.405

Congressionally Directed Spending – 93.493 Recommendation: We recommend that the University reviews its procedures around review and approval of expenditures to ensure that only valid expenditures are reported. Explanation of disagreement with audit finding: There is no disagreement with the audit f...

Congressionally Directed Spending – 93.493 Recommendation: We recommend that the University reviews its procedures around review and approval of expenditures to ensure that only valid expenditures are reported. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The identified expenditures were removed from the award and appropriately reclassified in September 2025. In response to this finding, the University of Maine at Augusta (UMA) has increased the frequency of general ledger review for its federal awards from monthly to twice monthly. This review process includes a direct cross-reference between transactions and the approved award budget. This enhanced oversight allows for timely identification and correction of discrepancies. The UMA Finance Department has several initiatives underway which will mitigate the risk of similar mispostings in the future, including the implementation of a formal training program for staff as a preventative control. A monthly reconciliation and transaction level review process which will be completed with principal investigators is also being developed. These additional procedures are expected to be in place by May 2026 and will support a consistent and strong awareness of federal compliance requirements, award administration and University of Maine System policies and procedures. Name(s) of the contact person(s) responsible for corrective action: Mark Mantey, Assistant Director of Finance, University of Maine at Augusta Planned completion date for corrective action plan: May 2026 If the United States Department of Education or other agency has questions regarding this plan, please call Darla Reynolds at 207-262-7743 or darlab@maine.edu.

View Audit 394719

Finding 1187012 (2025-002)

Material Weakness 2025

University of Maine System

ME

Questioned Costs Student Financial Aid Eligibility

Student Financial Assistance Cluster – 84.063 Recommendation: We recommend that a review is implemented which compares enrolled credits to Pell award to ensure all Pell funds are awarded at proper amounts. Explanation of disagreement with audit finding: There is no disagreement with the audit findin...

Student Financial Assistance Cluster – 84.063 Recommendation: We recommend that a review is implemented which compares enrolled credits to Pell award to ensure all Pell funds are awarded at proper amounts. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Upon notification of the finding, a query was developed and a review performed to identify potentially impacted records in advance of the 2025-2026 academic year. The University has also added review mechanisms to its semester-based enrollment adjustment and repackaging process designed to identify Enrollment Intensity (EI) coding changes, either by batch or manual processes. These review mechanisms allowed for the increased monitoring and correction of potentially incorrect EI coding that would ultimately increase the likelihood of an incorrect Pell Grant amount. A formal bi-weekly query and review process has recently been implemented that compares the student’s total enrollment for a term with the coded EI, confirming accuracy of the EI percentage. The query process also checks that the posted Pell award is the correct amount based on the EI percentage. Name(s) of the contact person(s) responsible for corrective action: Connie Smith, Executive Director of Student Financial Services Planned completion date for corrective action plan: March 2026

View Audit 394719

Finding 1187011 (2025-001)

Material Weakness 2025

University of Maine System

ME

Questioned Costs Student Financial Aid Reporting

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the University review its reporting procedures to ensure that students’ statuses are accurately and timely reported to National Student Loan Data System (NSLDS) within the appropriate timeframe as requ...

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the University review its reporting procedures to ensure that students’ statuses are accurately and timely reported to National Student Loan Data System (NSLDS) within the appropriate timeframe as required by regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: A weekly query process was implemented to identify continuing, degree-seeking students with cancellations or term withdrawals. This process allows us to identify this population of students and accurately report status changes to National Student Clearinghouse (NSC) within a week, ensuring plenty of time for information to be sent from NSC to NSLDS. Name(s) of the contact person(s) responsible for corrective action: Jack Campbell, Registrar, University of Maine and Saman Lesinski, Senior Associate Registrar, University of Southern Maine Planned completion date for corrective action plan: University of Maine – August 2025, University of Southern Maine – March 2026

View Audit 394719

Finding 1186999 (2025-001)

Material Weakness 2025

Town of Arlington

MA

Questioned Costs Procurement, Suspension & Debarment Allowable Costs / Cost Principles § 200.319

Findings 2025-001 Condition: The School’s procurement files did not contain documentation regarding competitive procurement procedures for four contracts. Corrective Action Planned: ● Create/Revise manuals for procurement Policies, Procedures, and Internal Controls. ● Train procurement staff of the ...

Findings 2025-001 Condition: The School’s procurement files did not contain documentation regarding competitive procurement procedures for four contracts. Corrective Action Planned: ● Create/Revise manuals for procurement Policies, Procedures, and Internal Controls. ● Train procurement staff of the District including, but not limited to, the entire business office, the Grant Administrator, and all Grant Managers of the District’s created/revised Policies, Procedures, and Internal Controls manuals. ● Review current FY26 procurement on federal grants and ensure compliance. ● Transfer expenses off of the federal grants that were not compliant with federal procurement regulations. Amend the grants where appropriate. ● Continuously train staff on procedures and maintain internal controls. Anticipated Completion Date: June 1, 2026 Contact: Christopher R. Schweitzer Assistant Superintendent of Finance and Operations cschweitzer@arlington.k12.ma.us 781-879-9069

View Audit 394714

Finding 1186991 (2025-006)

Material Weakness 2025

Clinton County, Iowa

IA

Subrecipient Monitoring Questioned Costs Material Weakness § 200.303 § 200.331 § 200.333

Finding 2025-006 Subrecipient Monitoring Federal Agency Name: Department of Health and Human Services Pass-Through En􀆟ty: Iowa Department of Health and Human Services Assistance Lis􀆟ng Number: 93.069 Program Name: Public Health Emergency Preparedness Finding Summary: The County did not formally comm...

Finding 2025-006 Subrecipient Monitoring Federal Agency Name: Department of Health and Human Services Pass-Through En􀆟ty: Iowa Department of Health and Human Services Assistance Lis􀆟ng Number: 93.069 Program Name: Public Health Emergency Preparedness Finding Summary: The County did not formally communicate the required informa􀆟on to the subrecipient. No subrecipient agreement was executed. In addi􀆟on, no monitoring ac􀆟vi􀆟es were documented. Responsible Individuals: Amber Shepard, Budget Director Correc􀆟ve Ac􀆟on Plan: Clinton County is working with Genesis Health System on implemen􀆟ng a subrecipient agreement and will put a control process in place to monitor An􀆟cipated Comple􀆟on Date: June 30, 2026

View Audit 394700

Finding 1186990 (2025-001)

Material Weakness 2025

Ritter Center

CA

Questioned Costs Subrecipient Monitoring

The Center’s responsible officials acknowledge the finding. The Center implemented additional training for all staff involved in the sliding fee discount application process and implemented a review of sliding fee discount applications at the management level, effective March 31, 2025. Since that ti...

The Center’s responsible officials acknowledge the finding. The Center implemented additional training for all staff involved in the sliding fee discount application process and implemented a review of sliding fee discount applications at the management level, effective March 31, 2025. Since that time, no further errors have been identified. We are committed to maintaining accurate application of the sliding fee schedule. We will continue ongoing staff training and regular supervisory reviews going forward to ensure compliance. Furthermore, the Accounting Department will perform periodic sampling several times a year to verify that sliding fee determinations continue to be applied correctly. Responsible persons: Jim Kelly, Chief Financial Officer Rachelle Valenzuela, Clinic Manager Sehrish Khan, Director of Clinical Compliance Implementation Date: March 31, 2025

View Audit 394694

Finding 1186953 (2025-003)

Material Weakness 2025

State of Ohio

OH

Period of Performance Questioned Costs Subrecipient Monitoring

Corrective Action Plan: The Department will evaluate its current policies and procedures relating to the processing of expenditure transactions and update them, as necessary, to reasonably ensure compliance with period of performance requirements. Anticipated Completion Date for Corrective Action: J...

Corrective Action Plan: The Department will evaluate its current policies and procedures relating to the processing of expenditure transactions and update them, as necessary, to reasonably ensure compliance with period of performance requirements. Anticipated Completion Date for Corrective Action: June 2026 Contact Person Responsible for Corrective Action: Name: Daniel Schreiber Title: Deputy Chief, Budget Address: 77 South High Street, 27th Fl, Columbus, Ohio 43215 Phone Number: 614-466-2209 E-Mail Address: daniel.schreiber@development.ohio.gov

View Audit 394693

Finding 1186932 (2025-004)

Material Weakness 2025

Town of Elkton, Maryland

MD

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting § 200.303

CSLRF Reporting - Revenue Replacement Recommendation: We recommend that the Town enhance its internal controls over CSLRF reporting to ensure that amounts reported as revenue replacement are accurately identified, supported, and reconciled to the underlying accounting records prior to submission of ...

CSLRF Reporting - Revenue Replacement Recommendation: We recommend that the Town enhance its internal controls over CSLRF reporting to ensure that amounts reported as revenue replacement are accurately identified, supported, and reconciled to the underlying accounting records prior to submission of required federal reports. This should include implementing a formal reconciliation 9rocess between the general ledger and CSLRF reporting schedules, along with documented review and approval procedures to ensure accuracy and proper classification. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management agrees with the finding and will strengthen internal controls over CSLRF reporting related to revenue replacement. The Town will implement a formal reconciliation process between the general ledger and CSLRF reporting schedules prior to submission of required federal reports. This process will include documented review and approval procedures to ensure that expenditures designated as revenue replacement are accurately identified, properly classified, allowable, and supported by underlying accounting records. Management will also perform periodic monitoring to ensure that these controls are consistently applied and operating as designed. Name of the contact person responsible for corrective action: Tyler Home. Director of Finance. Planned completion date for corrective action plan: March 3 I . 2026

View Audit 394691

Finding 1186930 (2025-001)

Material Weakness 2025

Ditson Street Senior Housing, Inc.

MA

Questioned Costs HUD Housing Programs

2025-001 Replacement Reserve Deposits 14.157 Supportive Housing for the Elderly Responsible Official Ellen Mason, Executive Director Plan Detail Management will continue to monitor its cash flows to ensure that daily operations are paid for and the required monthly replacement reserve is made with a...

2025-001 Replacement Reserve Deposits 14.157 Supportive Housing for the Elderly Responsible Official Ellen Mason, Executive Director Plan Detail Management will continue to monitor its cash flows to ensure that daily operations are paid for and the required monthly replacement reserve is made with available funds. Anticipated Completion Date: September 2025.

View Audit 394688

Finding 1186928 (2025-002)

Material Weakness 2025

Ivy Tech Community College of Indiana

IN

Subrecipient Monitoring Eligibility Material Weakness § 200.303 § 200.329

FINDING 2025-002 (Auditor Assigned Reference Number) Finding Subject: TRIO - Reporting Contact Person Responsible for Corrective Action: Stacy Atkinson, Indianapolis Chancelor John Gipson, Lake County Chancelor Chad Bolser, Richmond Chancelor Jeffrey Scott, Muncie Chancelor Contact Phone Numbers and...

FINDING 2025-002 (Auditor Assigned Reference Number) Finding Subject: TRIO - Reporting Contact Person Responsible for Corrective Action: Stacy Atkinson, Indianapolis Chancelor John Gipson, Lake County Chancelor Chad Bolser, Richmond Chancelor Jeffrey Scott, Muncie Chancelor Contact Phone Numbers and Email Addresses: 317-921-4800 ext. 085745 and satkinson17@ivytech.edu 812-297-3252 and jgipson33@ivytech.edu 765-966-2656 ext. 092345 and cmbolser@ivytech.edu 765-506-1942 and jdscott@ivytech.edu Views of Responsible Officials: We concur with the findings. Description of Corrective Action Plan: The College will ensure that each affected campus develops and implements a plan that includes internal controls to mitigate risks and ensure compliance. Campuses will be expected to conduct internal reviews of annual performance reports and maintain proper documentation of any identified corrections. Anticipated Completion Date: June 30, 2026

View Audit 394679

Finding 1186921 (2025-001)

Material Weakness 2025

Ivy Tech Community College of Indiana

IN

Eligibility Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

FINDING 2025-001 (Auditor Assigned Reference Number) Finding Subject: TRIO - Eligibility Contact Persons Responsible for Corrective Action: John Gipson, Lake County Chancellor Contact Phone Number and Email Address: 812-297-3252 and jgipson33@ivytech.edu Views of Responsible Officials: We concur wit...

FINDING 2025-001 (Auditor Assigned Reference Number) Finding Subject: TRIO - Eligibility Contact Persons Responsible for Corrective Action: John Gipson, Lake County Chancellor Contact Phone Number and Email Address: 812-297-3252 and jgipson33@ivytech.edu Views of Responsible Officials: We concur with the findings. Description of Corrective Action Plan: The College will ensure that each affected campus develops and implements a plan that incorporates internal controls to mitigate risk and ensure compliance with applicable requirements. Campus Project Directors will be responsible for maintaining complete and accurate documentation, including required dual signatures. Anticipated Completion Date: June 30, 2026

View Audit 394679

Finding 1186920 (2025-006)

Material Weakness 2025

University System of New Hampshire

NH

Questioned Costs Significant Deficiency Internal Control / Segregation of Duties

Student Financial Assistance Cluster – Assistance Listing Numbers 84.007, 84.033, 84.038, 84.063, 84.268 Recommendation: The University should review the procedures surrounding the verification process to ensure all necessary support and documentation is obtained and retained in the student files. E...

Student Financial Assistance Cluster – Assistance Listing Numbers 84.007, 84.033, 84.038, 84.063, 84.268 Recommendation: The University should review the procedures surrounding the verification process to ensure all necessary support and documentation is obtained and retained in the student files. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: When students are selected for verification; requirements are auto populated to RRAAREQ and prevent disbursement of federal aid. Once all requirements have been received, reviewed, and documented, the requirements are satisfied and aid is disbursed. For this specific account - a SEPID requirement was placed 7/30/24 - the student completed the form and staff satisfied the requirement on 01/21/25 - the aid was paid on 1/22/25. Subsequent verification requirements were received on new ISIR records on 2/25/25 and additional requirements were added to the student record. The later verification requirements were not completed because all aid was already disbursed prior to the new ISIR records. Going forward, staff will ensure the SIS is configured correctly to prevent disbursement of funds with outstanding verification requirements and pull back any disbursements previously made until verification is completed Name(s) of the contact person(s) responsible for corrective action: Elizabeth Stevens, Director, Student Financial Services, University of New Hampshire Planned completion date for corrective action plan: July 1, 2026

View Audit 394674

Finding 1186915 (2025-005)

Material Weakness 2025

University System of New Hampshire

NH

Questioned Costs Eligibility Significant Deficiency

Student Financial Assistance Cluster – Assistance Listing Numbers 84.007, 84.033, 84.038, 84.063, 84.268 Recommendation: We recommend the University review its SAP policies to ensure they met the minimum requirements and that they are fully implemented. Explanation of disagreement with audit finding...

Student Financial Assistance Cluster – Assistance Listing Numbers 84.007, 84.033, 84.038, 84.063, 84.268 Recommendation: We recommend the University review its SAP policies to ensure they met the minimum requirements and that they are fully implemented. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Historically the Graduate School was responsible for reviewing SAP and notifying Student Financial Services (SFS) if students needed to be warned or suspended. Going forward, SFS will begin reviewing graduate students for SAP to ensure accurate and timely notifications are in place. Additionally, SFS is reviewing the current logic to ensure GPA is accurately reviewed in the baseline SAP process. Student Financial Services 11 Garrison Avenue - Stoke Hall Durham, NH 03824 Name(s) of the contact person(s) responsible for corrective action: Elizabeth Stevens, Director, Student Financial Services, University of New Hampshire Planned completion date for corrective action plan: July 1, 2026

View Audit 394674

Finding 1186910 (2025-004)

Material Weakness 2025

University System of New Hampshire

NH

Questioned Costs Reporting Significant Deficiency

Student Financial Assistance Cluster – Assistance Listing Numbers 84.007, 84.033, 84.038, 84.063, 84.268 Recommendation: We recommend the college review its reporting procedures to ensure that awarding is within the need calculation. Explanation of disagreement with audit finding: There is no disagr...

Student Financial Assistance Cluster – Assistance Listing Numbers 84.007, 84.033, 84.038, 84.063, 84.268 Recommendation: We recommend the college review its reporting procedures to ensure that awarding is within the need calculation. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Keene State College KSC has reviewed student in question and has identified the scholarship award that caused the student information system to award a higher subsidized loan to the student. We have reviewed the packaging policy and made updates so the scholarship in question will now allow the correct sub/unsub loan to be awarded based on the student’s financial need eligibility. University of New Hampshire The University of New Hampshire’s accounts affected were updated 11/25/2025 to reflect the full subsidized loan amount. Error on loan swap was due to a new employee in training with limited resources. Since this occurred, the office policy and procedure manual and staff documentation have been updated to ensure this is not repeated in future years. Name(s) of the contact person(s) responsible for corrective action: Cathy Mullins, Director of Financial Aid and Scholarships, Keene State College Elizabeth Stevens, Director, Student Financial Services, University of New Hampshire Planned completion date for corrective action plan: March 10, 2026

View Audit 394674

Finding 1186900 (2025-002)

Material Weakness 2025

University System of New Hampshire

NH

Questioned Costs Student Financial Aid Significant Deficiency

Student Financial Assistance Cluster – Assistance Listing Numbers 84.007, 84.033, 84.038, 84.063, 84.268 Recommendation: We recommend that the College put a process in place to refund student credit balances that arose from federal funds within 14 days. Explanation of disagreement with audit finding...

Student Financial Assistance Cluster – Assistance Listing Numbers 84.007, 84.033, 84.038, 84.063, 84.268 Recommendation: We recommend that the College put a process in place to refund student credit balances that arose from federal funds within 14 days. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: This repeat finding was partially due to the implementation of Workday, the adjustments of aid to individual student records, and a shortage of staff. We have hired an additional staff member and trained additional staff to help with federal refunds during the demanding time of the term. Name(s) of the contact person(s) responsible for corrective action: Cathy Mullins, Director of Financial Aid and Scholarships. Keene State College Planned completion date for corrective action plan: July 1, 2026

View Audit 394674

Finding 1186895 (2025-001)

Material Weakness 2025

New England Conservatory of Music

MA

Questioned Costs Student Financial Aid

CORRECTIVE ACTION PLAN YEAR ENDED JUNE 30, 2025 Finding No. 2025-001 – Return of Title IV Funds Finding: During the audit, for the 2 students selected for testing of Title IV disbursements, the institution improperly calculated the number of days used in the Return of Title IV Funds (R2T4) calculati...

CORRECTIVE ACTION PLAN YEAR ENDED JUNE 30, 2025 Finding No. 2025-001 – Return of Title IV Funds Finding: During the audit, for the 2 students selected for testing of Title IV disbursements, the institution improperly calculated the number of days used in the Return of Title IV Funds (R2T4) calculation for the Fall 2024 semester, resulting in an incorrect percentage of Title IV aid earned. Consequently, the amount of Title IV aid refunded was not calculated in accordance with federal requirements. Corrective Action Taken or Planned: Senior management at NEC takes Title IV requirements seriously. Moving forward, the institution review its academic calendar and will strengthen controls over R2T4 calculations to ensure that the number of calendar days used in determining earned Title IV aid is calculated accurately and in accordance with federal requirements. Responsible Person: Rebecca Barry-Wolff, Director of Student Financial Planning Update: The corrective actions noted are all in place for fiscal year 2026.

View Audit 394669

Finding 1186892 (2025-001)

Material Weakness 2025

Rockport Housing Authority

MA

HUD Housing Programs Questioned Costs Eligibility

2025-001 - ELIGIBILITY Auditee’s Response and Planned Corrective Action Rockport Housing Authority (RHA) contracted with Newburyport Housing Authority (NHA) to manage the Section 8 program. They will be calculating income, assets and/or medical expenses based on HUD regulation. NHA is staffed with a...

2025-001 - ELIGIBILITY Auditee’s Response and Planned Corrective Action Rockport Housing Authority (RHA) contracted with Newburyport Housing Authority (NHA) to manage the Section 8 program. They will be calculating income, assets and/or medical expenses based on HUD regulation. NHA is staffed with an experienced Section 8 Coordinator. In addition, NHA uses Rent O Meter to provide Rent Reasonableness Reporting that will be entered into PHA Web as a method of recording. Planned Implementation Date of Corrective Action: June 30, 2026 Person Responsible for Corrective Action: Marie Mathas, Executive Director

View Audit 394668

Finding 1186890 (2025-002)

Material Weakness 2025

Bradley Angle

OR

Questioned Costs HUD Housing Programs Significant Deficiency § 200.303

U.S. Department of Housing and Urban Development 2025-002 AL# 14.267 – Continuum of Care Program Recommendation: We recommend that the Organization continue with the internal controls established later in the year and ensure that Rent Reasonableness testing is documented including the file review. A...

U.S. Department of Housing and Urban Development 2025-002 AL# 14.267 – Continuum of Care Program Recommendation: We recommend that the Organization continue with the internal controls established later in the year and ensure that Rent Reasonableness testing is documented including the file review. Additionally, as there have been recent revisions to the Uniform Grant Guidance (2 CFR 200) that now require documented internal controls over compliance, we also recommend that a specific policy be established for Rent Reasonableness to give clear directives of how the Organization determines rent reasonableness, how it is documented, and retained, ensuring there is current documentation of the internal controls over compliance. Explanation of disagreement with audit findings: there is no disagreement with the audit findings. Action taken in response to finding: Bradley Angle will continue with our rent reasonableness review and approval process for each of our participants when they are searching for their next home. Action Plan: Codify the review and approval process for documentation of rent reasonableness and share with all staff interacting with participants working to secure an apartment. Name(s) of the contact people responsible for correction action: Margot Martin, CEO & Liliana McDonald, Senior Housing Program Manager & Tiffany Thomas-Guice, Programs and Services Director Plan completion date for corrective action plan: May 15, 2026

View Audit 394661

Finding 1186880 (2025-001)

Material Weakness 2025

Prescott College, Inc.

AZ

Questioned Costs Student Financial Aid Reporting

National Student Loan Database System (NSLDS) Enrollment Reporting Recommendation: We recommend the College reevaluate their procedures and review policies surrounding reporting status changes to NSLDS to ensure timely and accurate reporting. Explanation of disagreement with audit finding: There is ...

National Student Loan Database System (NSLDS) Enrollment Reporting Recommendation: We recommend the College reevaluate their procedures and review policies surrounding reporting status changes to NSLDS to ensure timely and accurate reporting. Explanation of disagreement with audit finding: There is no disagreement with the auditfinding. Action taken in response to finding: The Registrar will re-evaluate policies, procedures and training materials to ensure timely and accurate reporting. Name(s) of the contact person(s) responsible for corrective action: Michele Peterson Planned completion date for corrective action plan: 03/31/26 If

View Audit 394632

Finding 1186862 (2025-001)

Material Weakness 2025

El Corredor Tecno Economico De Puerto Rico Y El Caribe

PR

Questioned Costs Reporting Significant Deficiency

View of Responsible officials and corrective actions: To make sure that all pertinent documents & information related to 2024-25 financial statements are delivered to our auditor with sufficient time for them to complete said year’s single audit and submit it to the corresponding agency.

View Audit 394611

Finding 1186861 (2025-003)

Material Weakness 2025

Homeless Assistance Leadership Organization, Inc.

WI

Questioned Costs Subrecipient Monitoring HUD Housing Programs

Finding #2025-003 - Rent Reasonableness Criteria: HUD requires that recipients ensure that rent is reasonable compared to similar unassisted units and maintain documentation supporting the determination; rent paid with CoC leasing funds·may not exceed Fair Market Rent (FMR); and rent reasonableness ...

Finding #2025-003 - Rent Reasonableness Criteria: HUD requires that recipients ensure that rent is reasonable compared to similar unassisted units and maintain documentation supporting the determination; rent paid with CoC leasing funds·may not exceed Fair Market Rent (FMR); and rent reasonableness determinations must be completed before providing assistance. Condition: During testing of rent reasonableness controls and documentation, the following exceptions were identified: • 4 of 4 rent reasonableness determinations lacked evidence of an independent review and approval. • There were 8 instances (2 units x 4 months) where rents exceeded HUD FMR limits. • 3 of 20 rent reasonableness determinations were not completed prior to the lease start date. Questioned Costs: $392. Cause: The Organization did not have sufficiently defined or consistently followed procedures for documenting independent review of rent reasonableness determinations, verifying rents against applicable FMR limits before authorizing payments, and ensuring determinations were complete prior to lease start dates. Effect: Units are approved and paid at non-compliant rent levels, federal funds are used for rents above allowable limits, and documentation does not meet HUD standards, potentially leading to questioned costs, required repayment, and findings in future monitoring or audits. Recommendation: We recommend that management establish a mandatory review and approval step for all rent reasonableness forms, require staff to verify current FMR limits before approving leasing amounts, and require rent reasonableness completion before any lease start date or payment authorization. Response: HALO's management concurs with this finding. HALO management will implement procedures to ensure compliance with rent reasonableness and FMR limits and train staff on those procedures. HALO will replace the current Rent Reasonableness form with the one on the HUD Exchange. Contact Person: Yvonne MacDonald Hames Anticipated Completion: June 30, 2026

View Audit 394609

Finding 1186860 (2025-002)

Material Weakness 2025

Homeless Assistance Leadership Organization, Inc.

WI

Questioned Costs Allowable Costs / Cost Principles HUD Housing Programs

Finding #2025-002 - Wage Allocations Criteria: Wages should be allocated to federal and state programs on the basis of time spent in each program. Condition: 1 out of 40 payroll transactions reviewed had differences between the wages that were charged to the grant and the wages that should have been...

Finding #2025-002 - Wage Allocations Criteria: Wages should be allocated to federal and state programs on the basis of time spent in each program. Condition: 1 out of 40 payroll transactions reviewed had differences between the wages that were charged to the grant and the wages that should have been charged to the grant based on the number of hours worked. Questioned Costs: $1,540. Cause: Payroll software coded manager time as admin time instead of the specific grant funding code. Effect: Wages could be charged to the wrong federal awards and not detected and corrected. Recommendation: We recommend that management review payroll software inputs and outputs for accuracy prior to completing grant claims. Response: HALO's management concurs with this finding. HALO's processes will include a review of payroll software inputs and outputs to ensure hours and wages are accurately allocated. Contact Person: Yvonne MacDonald Hames Anticipated Completion: June 30, 2026

View Audit 394609

Finding 1186851 (2025-008)

Material Weakness 2025

Seda Council of Governments

PA

Questioned Costs

U.S. DEPARTMENT OF TREASURY COVID-19-Coronavirus State and Local Fiscal Recovery Funds- Assistance Listing No. 21.027; Passed through the Pennsylvania Department of Economic Development, Grant period - Year ended June 30, 2025. See Finding 2025-006 – Listed below. REVENUE RECOGNITION (DUE FROM OTHER...

U.S. DEPARTMENT OF TREASURY COVID-19-Coronavirus State and Local Fiscal Recovery Funds- Assistance Listing No. 21.027; Passed through the Pennsylvania Department of Economic Development, Grant period - Year ended June 30, 2025. See Finding 2025-006 – Listed below. REVENUE RECOGNITION (DUE FROM OTHER GOVERNMENTS) Recommendation: The Council’s fiscal office and program director’s should be evaluating grant funding received that could be related to prior work/projects complete and record in the proper period as required. Management Response: Management concurs with finding. Planned Corrective Action: All accounts payable invoices and vouchers will be reviewed through October 15th of the following fiscal year to ensure revenue for any reimbursable expenses are recorded in the correct fiscal year. Persons Responsible: Jamie Carnes, Fiscal Controller Anticipated Completion Date: March 31, 2026

View Audit 394595

Finding 1186849 (2025-007)

Material Weakness 2025

Seda Council of Governments

PA

Questioned Costs

U.S DEPARTMENT OF TREASURY COVID-19-Coronavirus State and Local Fiscal Recovery Funds- Assistance Listing No. 21.027; Passed through the Pennsylvania Department of Economic Development, Grant period - Year ended June 30, 2025. See finding 2025-003 - Listed below. ACCOUNTS PAYABLE Recommendation: Pro...

U.S DEPARTMENT OF TREASURY COVID-19-Coronavirus State and Local Fiscal Recovery Funds- Assistance Listing No. 21.027; Passed through the Pennsylvania Department of Economic Development, Grant period - Year ended June 30, 2025. See finding 2025-003 - Listed below. ACCOUNTS PAYABLE Recommendation: Procedures should be implemented to ensure accounts payable are recorded in the proper period. Management Response: Management concurs with finding. Planned Corrective Action: All accounts payable invoices and vouchers will be reviewed through October 15th of the following fiscal year to ensure all expenses are recorded in the correct fiscal year. Persons Responsible: Jamie Carnes, Fiscal Controller Anticipated Completion Date: March 31, 2026

View Audit 394595

Finding 1186846 (2025-003)

Material Weakness 2025

Westchester Jewish Community Services, Inc.

NY

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.430

Finding 2025-003, Timesheet - Timekeeping (Assistance Listing 16.575 and 93.958) Persons Responsible: Irene Math, Chief Financial Officer; Shannon Van loon, Chief Operating Officer Comment: Per 2 CFR § 200.430 requires that the distribution of salary and wages charged to federal awards be based on a...

Finding 2025-003, Timesheet - Timekeeping (Assistance Listing 16.575 and 93.958) Persons Responsible: Irene Math, Chief Financial Officer; Shannon Van loon, Chief Operating Officer Comment: Per 2 CFR § 200.430 requires that the distribution of salary and wages charged to federal awards be based on actual employee activity as reflected in personal activity reports (timesheets), prepared after-the-fact, that include the total activity for which employees were compensated. Response: In January 2025, WJCS implemented an automated time and attendance system for staff to track time which integrates with the payroll and financial systems to ensure appropriate allocations to Federal awards. Prior to implementation of the new system weekly manual timesheets were used to track staff time and attendance on Federal contracts. However, these manual timesheets were not integrated into a standard agency-wide payroll processing system. The new system enhancements to payroll tracking will allow WJCS to completely and accurately allocate payroll costs to grants with fewer mechanical steps which increase the risk of miscalculations. Management will continue to monitor the automated timekeeping system through periodic supervisory reviews and payroll-to-grant allocation reconciliations to ensure ongoing compliance with 2 CFR §200.430. Estimated Completion Date: The agency-wide time and attendance system was implemented in January 2025.

View Audit 394587

Corrective Action Plans

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