Corrective Action Plans

Finding 1222569 (2025-001)

Material Weakness 2025

FL

Reporting Internal Control / Segregation of Duties

The Community Services Department (CSD) acknowledges the untimely submission of the October 2024 report. As indicated in the finding letter, this matter was an isolated event and not a systemic or programmatic concern. The delay resulted from temporary staffing shortages and leadership transitions d...

The Community Services Department (CSD) acknowledges the untimely submission of the October 2024 report. As indicated in the finding letter, this matter was an isolated event and not a systemic or programmatic concern. The delay resulted from temporary staffing shortages and leadership transitions during a high-demand fiscal period, rather than from deficiencies in internal controls. The Department maintains appropriate internal controls, clearly assigned responsibilities, and supervisory review processes. With stabilized leadership and strengthened monitoring procedures in place, the County is confident that timely grant reporting will continue moving forward. Although the County’s internal control structure remains sound and responsibilities are clearly assigned, the following measures have been reinforced to ensure continuity during future staffing transitions or high-volume periods: 1. Affirmation of Existing Internal Controls o Confirmed that established internal controls over grant reporting remain appropriate and effective. o Reaffirmed clearly designated staff responsible for preparation, review, and submission of grant reports. 2. Enhanced Deadline Monitoring o Strengthened use of a centralized tracking log 3. Backup Coverage and Cross-Training o Identified backup personnel to ensure continuity during staff vacancies or absences. 4. Strengthened Management Oversight o With the new Fiscal Division Director in place, oversight and monitoring of grant reporting timelines have been reinforced. Management now conducts proactive check-ins during peak workload periods, including Fiscal Close-Out. Responsible Parties: Fiscal Division Director, Fiscal Unit Management, Assigned Accountant 3 and 2. Implementation and Completion Date: Corrective actions began in November 2024 following stabilization of leadership positions. Enhanced monitoring and oversight procedures are consistently reviewed, evaluated, and refined throughout the year to increase operational efficiency, strengthen internal controls, and ensure continued compliance with all grant reporting requirements.

View Audit 406171

Finding 1222568 (2025-010)

Material Weakness 2025

Commonwealth of Puerto Rico Department of Natural and Environmental Resources

PR

School Nutrition Programs Reporting

VIEWS OF RESPONSIBLE OFFICIALS The Puerto Rico Department of Education (PRDE) acknowledges the audit finding presented by the auditors regarding the timeliness of FFATA reporting to the FSRS portal under the Child Nutrition Cluster (ALN 10.553, 10.555, and 10.559). As noted by the auditors, PRDE sta...

VIEWS OF RESPONSIBLE OFFICIALS The Puerto Rico Department of Education (PRDE) acknowledges the audit finding presented by the auditors regarding the timeliness of FFATA reporting to the FSRS portal under the Child Nutrition Cluster (ALN 10.553, 10.555, and 10.559). As noted by the auditors, PRDE staff have continued implementing corrective measures in response to this requirement since it was first identified as Finding 2024-011. The delays identified during the current fiscal year were related primarily to the reporting of contract amendments, and the PRDE recognizes the need to fully resolve this repeat condition. The Child Nutrition program has already developed and begun implementing its corrective action plan, which includes reinforced monitoring procedures and designated tracking responsibilities for all subaward and contract amendment reporting obligations. With these measures in place, the PRDE expects to submit all required FFATA reports for subaward obligations and contract amendments within the timeframe established under 2 CFR Part 170 going forward. IMPLEMENTATION DATE Implemented on Fiscal Year 2025-2026 RESPONSIBLE PERSON Odalis Menard AESAN Director Lourdes García Santiago AESAN Sub-Director

View Audit 406169

Finding 1222562 (2025-009)

Material Weakness 2025

Commonwealth of Puerto Rico Department of Natural and Environmental Resources

PR

Reporting § 200.512

VIEWS OF RESPONSIBLE OFFICIALS The Puerto Rico Department of Education (PRDE) acknowledges the late submission of the Data Collection Form and Reporting Package for the fiscal year ended June 30, 2025, and recognizes the importance of timely compliance with 2 CFR §200.512(a)(1). The PRDE respectfull...

VIEWS OF RESPONSIBLE OFFICIALS The Puerto Rico Department of Education (PRDE) acknowledges the late submission of the Data Collection Form and Reporting Package for the fiscal year ended June 30, 2025, and recognizes the importance of timely compliance with 2 CFR §200.512(a)(1). The PRDE respectfully offers the following additional context regarding the factors that contributed to the delay, several of which were outside the Department's control. First, the PRDE acknowledges that the reconciliation of expenditures related to certain federally funded disaster recovery programs administered outside the Department — specifically the CDBG-DR (ALN 14.228) and Disaster Grants – Public Assistance (ALN 97.036) programs — presented recurring challenges. Information regarding these expenditures is provided to the PRDE by external program administrators, and the data received did not always arrive with sufficient clarity to allow the Department to perform the corresponding adjustments to the SEFA without additional follow-up and clarification. Second, and as the principal factor affecting the submission timeline, the 2025 OMB Compliance Supplement was not released until November 2025, substantially later than its customary release date and later than in prior audit cycles. The Department's external auditors communicated to the PRDE that audit testing of major programs could not begin until the Compliance Supplement was available, since it establishes the compliance requirements and audit procedures applicable to each major program. As a direct consequence of this delay, which is publicly documented and affected single audits nationwide, the available window to complete required testing was substantially compressed, and an extension of the submission deadline was requested due to the limited time remaining to perform the necessary audit procedures. The PRDE notes that while it continues to strengthen its internal procedures for accumulating and reconciling SEFA-related information — particularly for programs administered by external entities — the timing of the late submission for this audit cycle was significantly influenced by the delayed availability of the Compliance Supplement, a circumstance affecting auditees and auditors broadly and not unique to the Department. IMPLEMENTATION DATE Fiscal Year 2026-2027 RESPONSIBLE PERSON Evelyn E. Rodríguez Cardé, MBA Director of Finance

View Audit 406169

Finding 1222518 (2025-002)

Material Weakness 2025

Commonwealth of Puerto Rico Department of Natural and Environmental Resources

PR

Equipment & Real Property Management Internal Control / Segregation of Duties Procurement, Suspension & Debarment § 200.302 § 200.403

VIEWS OF RESPONSIBLE OFFICIALS The Puerto Rico Department of Education (PRDE) accepts the finding identified by the auditors regarding the incorrect coding of five (5) reimbursement payments for equipment purchases in account E6170 (Donations and Contributions to Private Entities), rather than in th...

VIEWS OF RESPONSIBLE OFFICIALS The Puerto Rico Department of Education (PRDE) accepts the finding identified by the auditors regarding the incorrect coding of five (5) reimbursement payments for equipment purchases in account E6170 (Donations and Contributions to Private Entities), rather than in the appropriate E5000-series accounts, and the omission of said assets from the institutional property register. The PRDE has initiated the necessary corrective actions to address this deficiency. Specifically, all assets included within the affected reimbursement transactions have been identified, and a detailed inventory is being prepared in which each asset is classified according to the capitalization criteria established in the Restart Program Fiscal Process Guide (unit cost equal to or greater than $500.00 and useful life greater than two (2) years). This inventory distinguishes between capitalizable equipment (E5000 series) and non-capitalizable equipment (E4414), in accordance with applicable regulatory requirements. Once finalized, the inventory file will be submitted to the PRDE’s Office of Property for review and mass upload into the institutional property register, ensuring that all assets acquired with Restart Program funds are properly recorded under PRDE ownership, in compliance with Section 102(h)(3) of the 2018 Hurricane Relief Act and the requirements of 2 CFR §200.302(b)(3)(4). IMPLEMENTATION DATE Fiscal Year 2026-2027 RESPONSIBLE PERSON Edgar Delgado Serrano Interim Director of Federal Affairs Office

View Audit 406169

Finding 1222517 (2025-001)

Material Weakness 2025

Commonwealth of Puerto Rico Department of Natural and Environmental Resources

PR

Matching / Level of Effort / Earmarking Subrecipient Monitoring Allowable Costs / Cost Principles § 200.302 § 200.403

VIEWS OF RESPONSIBLE OFFICIALS The Puerto Rico Department of Education (PRDE) acknowledges the audit findings presented by the auditors regarding the Activities Allowed or Unallowed / Allowable Costs/Cost Principles compliance requirement under the IDEA Special Education Cluster (Assistance Listing ...

VIEWS OF RESPONSIBLE OFFICIALS The Puerto Rico Department of Education (PRDE) acknowledges the audit findings presented by the auditors regarding the Activities Allowed or Unallowed / Allowable Costs/Cost Principles compliance requirement under the IDEA Special Education Cluster (Assistance Listing Nos. 84.027 and 84.173). The PRDE recognizes that certain deficiencies identified by the auditors relate to inconsistencies in supporting documentation, documentation retained in departmental systems, and the need to strengthen administrative controls over the documentation supporting disbursements for private educational and therapy services. The Department further acknowledges opportunities to improve the consistency of information maintained in supporting schedules, contract documentation, proposals, and other records used during the invoice review and payment process. The PRDE respectfully clarifies that, in several instances identified during the audit, the questioned conditions were attributable to documentation inconsistencies, system-generated reporting errors, or documentation that supports the transactions but was not maintained or presented in a standardized manner during the audit process. Specifically, the Department notes that adjustment reports recorded in the financial system agreed with the disbursement vouchers despite errors identified in certain Excel master schedules; that invoice validations performed by the Centers are based on the corresponding "Carta de Aprobación de Consulta de Ubicación," which establishes the approved services and applicable rates for each student; and that federal regulations authorize IDEA Part B (ALN 84.027) funds to be used for eligible children ages 3 through 21, including expenses otherwise allowable under the Preschool Grant (ALN 84.173), as permitted under 34 CFR §300.202(a). With respect to students identified as over 21 years of age, the PRDE conducted an individual review of the affected student records and determined that the population includes students who exited the program at age 21 as well as students for whom documentation exists supporting the continuation of services through individualized educational determinations, transition planning activities, or compensatory educational services. The Department recognizes, however, that documentation supporting these determinations was not maintained in a standardized manner that facilitated timely retrieval during the audit. The PRDE further acknowledges that improvements are needed to ensure that procurement documentation, contract amendments, proposals, invoice support, Excel master schedules, and student-level supporting documentation are complete, accurate, consistent, and readily available for audit and monitoring purposes. Accordingly, the Department accepts the auditors' recommendations and is committed to implementing corrective actions designed to strengthen internal controls, standardize documentation practices, improve supervisory review procedures, and enhance coordination among the responsible program and administrative units IMPLEMENTATION DATE Fiscal Year 2026-2027 RESPONSIBLE PERSON Enid Diaz Nieves Executive Director III Alayra Figueroa Gonzalez Associate Secretary for Special Education

View Audit 406169

Finding 1222435 (2025-001)

Material Weakness 2025

American Indian Higher Education Consortium

VA

Reporting Subrecipient Monitoring

Management Response AIHEC concurs with this finding. The delays resulted from insufficient monitoring of reporting deadlines across multiple federal awards managed by different program staff, compounded by turnover in the Grants Management function during the fiscal year. AIHEC has hired a full-time...

Management Response AIHEC concurs with this finding. The delays resulted from insufficient monitoring of reporting deadlines across multiple federal awards managed by different program staff, compounded by turnover in the Grants Management function during the fiscal year. AIHEC has hired a full-time Grants & Compliance Manager, who joined the organization in December 2025 and has direct responsibility for tracking and ensuring timely submission of all federal financial and performance reports. In addition, AIHEC implemented a new grant management software system, Grant Vantage, beginning in April 2026. Grant Vantage maintains reporting schedules for each federal award, including the applicable lead times for RPPR, SF-425, and FFATA subaward reporting, and serves as a centralized repository for completed reports and submission documentation. Grant Vantage is continuing to be rolled out for full use across the organization, with the Grants & Compliance Manager overseeing adoption by program staff and the Director of Finance providing final review and submission sign-off. AIHEC will also continue to provide refresher training to program and finance staff on FFATA subaward reporting thresholds and procedures as the system rollout is completed. Estimated Completion Date Implemented April 2026; full organization-wide rollout by September 30, 2026. Responsible Party Angela Toles, Grants & Compliance Manager, with oversight by Diane Robertsy, Director of Finance.

View Audit 406143

Finding 1222417 (2025-003)

Material Weakness 2025

City of Coral Gables, Florida

FL

Reporting

Identifying number: 2025-003 Finding: The City’s original SEFA draft excluded $66,963 of payroll expenditures related to ALN 95.001, resulting in incomplete reporting of federal expenditures. Corrective Actions Planned: Beginning in fiscal year 2026, management will ensure that complete population o...

Identifying number: 2025-003 Finding: The City’s original SEFA draft excluded $66,963 of payroll expenditures related to ALN 95.001, resulting in incomplete reporting of federal expenditures. Corrective Actions Planned: Beginning in fiscal year 2026, management will ensure that complete population of grant program expenditures are reconciled to the general ledger and project accounting module as part of the procedure in preparing the schedule of expenditures of federal awards. This corrective action plan has been assigned to Diana Gomez, Finance Director and will be completed by November 30, 2026, for all expenditures related to fiscal year 2026.

View Audit 406142

Finding 1222390 (2025-010)

Material Weakness 2025

City of Amarillo, Texas

TX

Subrecipient Monitoring Internal Control / Segregation of Duties Procurement, Suspension & Debarment § 200.303

Finding 2025-010: Reporting – FFATA Subawards Airport Improvement Program View of responsible officials: The City agrees with the finding. Corrective action plan: The City will establish sufficient procedures or oversight controls to identify first-tier subawards subject to FFATA reporting requireme...

Finding 2025-010: Reporting – FFATA Subawards Airport Improvement Program View of responsible officials: The City agrees with the finding. Corrective action plan: The City will establish sufficient procedures or oversight controls to identify first-tier subawards subject to FFATA reporting requirements and ensure the required subaward information was submitted timely. Additionally, personnel responsible for grant administration were not sufficiently aware of the applicable FFATA reporting requirements Implementation dates: July 31, 2026 Responsible person: Lola Ogunremi, Chief Financial Officer

View Audit 406137

Finding 1222371 (2025-007)

Material Weakness 2025

City of Amarillo, Texas

TX

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting § 200.302 § 200.303

Finding 2025-007: Reporting – FAA Form 5100-127 Airport Improvement Program View of responsible officials: The City agrees with the finding. Corrective action plan: The City will enhance its existing reconciliation and review procedures by requiring documented tie-outs of FAA Form 5100-127 amounts t...

Finding 2025-007: Reporting – FAA Form 5100-127 Airport Improvement Program View of responsible officials: The City agrees with the finding. Corrective action plan: The City will enhance its existing reconciliation and review procedures by requiring documented tie-outs of FAA Form 5100-127 amounts to the general ledger, retention of supporting documentation for all reported amounts, and evidence of supervisory review prior to submission. Implementation dates: September 30, 2026 Responsible person: Lola Ogunremi, Chief Financial Officer

View Audit 406137

Finding 1222353 (2025-003)

Material Weakness 2025

City of Amarillo, Texas

TX

HUD Housing Programs Reporting Significant Deficiency § 200.303

Finding 2025-003: Reporting – SEMAP Housing Choice Vouchers View of responsible officials: The City agrees with the finding. Corrective action plan: SEMAP certifications must be formally approved by the City’s governing board and signed by appropriate management prior to submission. Implementation d...

Finding 2025-003: Reporting – SEMAP Housing Choice Vouchers View of responsible officials: The City agrees with the finding. Corrective action plan: SEMAP certifications must be formally approved by the City’s governing board and signed by appropriate management prior to submission. Implementation dates: September 30, 2026 Responsible person: Lola Ogunremi, Chief Financial Officer

View Audit 406137

Finding 1222350 (2025-002)

Material Weakness 2025

City of Amarillo, Texas

TX

HUD Housing Programs Reporting Subrecipient Monitoring § 200.303

Finding 2025-002: Reporting – HUD 50058 Housing Choice Vouchers View of responsible officials: The City agrees with the finding. Corrective action plan: Management acknowledges that the filings with HUD were not timely. Staff will work to ensure filings take place within 60 days of the effective dat...

Finding 2025-002: Reporting – HUD 50058 Housing Choice Vouchers View of responsible officials: The City agrees with the finding. Corrective action plan: Management acknowledges that the filings with HUD were not timely. Staff will work to ensure filings take place within 60 days of the effective date. Implementation dates: September 30, 2026 Responsible person: Lola Ogunremi, Chief Financial Officer

View Audit 406137

Finding 1222345 (2025-004)

Material Weakness 2025

Center for Independence of Individuals with Disabilities

CA

Allowable Costs / Cost Principles Subrecipient Monitoring Cash Management § 200.303 § 200.305 § 200.309 § 200.328 § 200.329

Provide all management staff with annual training on federal grant requirements, perform periodic internal reviews and a final year-end reconciliation, maintainall grant-related records on a shared organizational drive accessible to all responsible staff, provide formal onboarding and off boarding p...

Provide all management staff with annual training on federal grant requirements, perform periodic internal reviews and a final year-end reconciliation, maintainall grant-related records on a shared organizational drive accessible to all responsible staff, provide formal onboarding and off boarding procedures for federal grant management, and update the Finance Manual .

View Audit 406136

Finding 1222342 (2025-002)

Material Weakness 2025

Family Life Center, Inc.

AL

Reporting Internal Control / Segregation of Duties

The Organization has been working on improving controls over interim financial reports including review of related reconciliations and financial statements by the board and management since this finding was originally reported. Improvements have been made but continuing work is being done to complet...

The Organization has been working on improving controls over interim financial reports including review of related reconciliations and financial statements by the board and management since this finding was originally reported. Improvements have been made but continuing work is being done to complete this. These additional controls are expected to be fully implemented for the fiscal year ending September 30, 2026.

View Audit 406128

Finding 1222311 (2025-001)

Material Weakness 2025

Housing Authority of the City of Winston-Salem

NC

HUD Housing Programs Eligibility Material Weakness

Audit Firm: CohnReznick Period Covered by Audit October 1, 2024 - September 30, 2025 Corrective Action Plan Prepared By: Name: Nancy Thomas Position Chief Financial Officer and Executive Vice President Telephone Number: 336-917-6066 Findings and Questioned Costs - Major Federal Award Program Audit F...

Audit Firm: CohnReznick Period Covered by Audit October 1, 2024 - September 30, 2025 Corrective Action Plan Prepared By: Name: Nancy Thomas Position Chief Financial Officer and Executive Vice President Telephone Number: 336-917-6066 Findings and Questioned Costs - Major Federal Award Program Audit Finding No. 2025-001; Eligibility and Reporting - Material Weakness-HCV Voucher Program Name of Federal Agency: Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster (Section 8 Housing Choice Vouchers Program; Mainstream Vouchers Program) Assistance Listing Number: 14.871; 14.879 Federal Award Identification Number and Year: NC012VO 2025; NC012EF 2025; NC012DV 2025 Criteria: In accordance with Uniform Guidance, internal controls are required to be in place to ensure compliance with federal requirements and to maintain complete and accurate participant files as noted in CFR 5.233, 982.151, 982.405(d), and 982.516. Condition and Context: Our testing of 40 participant files noted the following: • No support was able to be provided regarding tenant lease files for 4 of 40 participant selections. • No tenant addendum was able to be provided for 1 of 40 participant selections. • No HAP contract was able to be provided for 2 of 40 participant selections. • No electronic income verification was done within the required time period for 13 of 40 participant selections. • Annual recertifications were not completed timely for 3 of 40 participant selections. Effect or Potential Effect: The Housing Authority of the City of Winston-Salem (“ASPIRE”) is not in compliance with federal requirements regarding Eligibility and Reporting. Cause: Tenant lease files were not maintained, and tenant eligibility was not determined in accordance with Uniform Guidance. Questioned Costs: Unknown Identification as a Repeat Finding: Repeat finding 2024-001 Recommendation: ASPIRE should maintain complete and accurate participant files to ensure compliance with federal requirements. Views of Responsible Official(s) and Planned Corrective Actions: ASPIRE will improve internal controls to maintain complete and accurate participant files to ensure compliance with federal requirements. CORRECTIVE ACTION TO BE TAKEN: 1. No support was able to be provided regarding tenant lease files for 4 of 40 participant selections. Response: The agency underwent a relocation of its main office and experienced the loss of five Housing Choice Voucher Specialists, which necessitated the engagement of a contractor to assume responsibility for more than 1,800 participant case files. Due to the transition of these caseloads to the contractor and the limited storage capacity at the agency's new office location, physical participant files were transferred to an off-site storage facility. During the process of boxing, inventorying, and relocating more than 5,000 physical files, four participant files were inadvertently misplaced. Upon discovery, management took immediate action to reconstruct the missing files using available electronic records, third-party documentation, and information maintained within Yardi. To mitigate the risk of future file loss and strengthen document retention practices, the agency implemented enhanced procedures effective January 1, 2025. Staff are now required to electronically upload and attach all supporting documentation to the applicable HUD Form 50058 action within Yardi, in addition to maintaining the required physical file. This dual-record retention process ensures that participant documentation is preserved in both electronic and hard-copy formats, providing redundancy and improving accessibility, accountability, and compliance with record retention requirements. 2. No tenant addendum was able to be provided for 1 of 40 participant selections. Response: The absence of the tenant addendum was the result of an oversight by the Housing Choice Voucher Specialist. To prevent similar occurrences in the future, staff have been reminded of the requirement to maintain complete participant files, including all required HUD forms and addenda. In addition, the agency now requires that tenant addendums and all supporting documentation be maintained in both the participant's electronic file within Yardi and the physical file. This dual-record retention process provides an additional level of quality control and helps ensure that required documentation is readily available for future reviews and audits. 3. No HAP contract was able to be provided for 2 of 40 participant selections. Response: The agency was unable to provide a copy of the HAP Contract for two of the forty participant files selected for review. This was the result of an oversight in the maintenance of the participant files. Upon notification, management conducted a review of the files and implemented corrective measures to strengthen document retention practices. Staff have been retrained on the requirement to maintain complete participant files, including all required Housing Assistance Payment (HAP) Contracts and supporting documentation. In addition, the agency now requires that HAP Contracts be maintained in both the participant's electronic file within Yardi and the physical file. Management has also implemented periodic file reviews to verify that required documentation is present and properly retained. These measures are intended to improve recordkeeping controls and prevent similar occurrences in the future. 4. No electronic income verification was done within the required time period for 13 of 40 participant selections. Response: Electronic Income Verification (EIV) reports were not completed within the required timeframe for 13 of the 40 participant files selected for review. The delays were the result of staff oversight and workload challenges experienced during a period of significant staffing turnover within the Housing Choice Voucher Program. To address this issue, Housing Choice Voucher staff have been retrained on EIV requirements, including required timeframes for obtaining and reviewing EIV reports. Management has reinforced expectations regarding timely completion and documentation of EIV reviews. Additionally, the department auditor conducts monthly reviews of a random sample of participant files to verify compliance with EIV requirements and identify any deficiencies requiring corrective action. These measures are intended to strengthen compliance monitoring and ensure EIV reviews are completed within HUD-required timeframes. 5. Annual recertifications were not completed timely for 3 of 40 participant selections. Response: Annual recertifications were not completed within the required timeframe for three of the forty participant files selected for review. The delays were primarily attributable to staffing shortages and caseload transitions that occurred during the audit period, resulting in increased workloads and processing delays. To address this issue, staff have been retrained on annual recertification requirements and processing timelines. Management has reinforced expectations regarding the timely completion of annual recertifications and implemented additional monitoring procedures to track upcoming and overdue recertifications. The Director has also developed an Annual Recertification Calendar for staff to follow. This calendar outlines each step of the annual recertification process and establishes deadlines to ensure timely completion of all required actions. In addition, the department auditor conducts monthly reviews of a random sample of participant files to verify compliance and identify any deficiencies requiring corrective action. These measures are intended to improve timeliness, strengthen oversight, and ensure annual recertifications are completed in accordance with HUD requirements.

View Audit 406123

Finding 1222287 (2025-005)

Material Weakness 2025

Jackson County, Florida

FL

Matching / Level of Effort / Earmarking Reporting Significant Deficiency § 200.303 § 200.326

Lynsey Darragh - Administrative Services Director, Lucas Mayo – Grant Administrator and Tony Pumphrey – Finance Director will develop procedures to ensure that all program reports have documented reviews; are submitted timely and that are reconciled to the accounting records before submission. Antic...

Lynsey Darragh - Administrative Services Director, Lucas Mayo – Grant Administrator and Tony Pumphrey – Finance Director will develop procedures to ensure that all program reports have documented reviews; are submitted timely and that are reconciled to the accounting records before submission. Anticipated completion date is July 31, 2026.

View Audit 406113

Finding 1222243 (2025-002)

Material Weakness 2025

Tri-County Regional Planning Commission

MI

Special Tests & Provisions Material Weakness Reporting

2025-002 – Journal Entries and Disbursement Approval Controls Auditors Description of Condition and Effect: During our testing of journal entries and accounts payable disbursements, we noted certain internal control processes were not consistently performed or documented. This included 5 out of 40 i...

2025-002 – Journal Entries and Disbursement Approval Controls Auditors Description of Condition and Effect: During our testing of journal entries and accounts payable disbursements, we noted certain internal control processes were not consistently performed or documented. This included 5 out of 40 instances where supporting documentation was not readily available for journal entries and 19 out of 40 instances where invoices were not consistently reviewed and approved by an individual independent of the preparer in accordance with Commission policy. These conditions are attributable to insufficiently formalized procedures and enforcement of controls governing journal entry support and disbursement review and approval. As a result, there is an increased risk that unsupported or inappropriate transactions could be recorded and that disbursements may be processed without proper authorization, increasing the risk of errors or irregularities not being detected in a timely manner. Auditor Recommendation: We recommend that the Commission strengthen procedures to ensure that all journal entries are supported by appropriate documentation and that all disbursements are reviewed and approved in accordance with established policies, with evidence of such review maintained. Corrective Action: Management will implement procedures to ensure all journal entries are adequately supported and that invoice approvals are documented in accordance with policy requirements. Responsible Person: Jim Snell Executive Director, Sydney Sheaks Finance Manager Anticipated Completion Date: 9/30/2026

View Audit 406105

Finding 1222232 (2025-002)

Material Weakness 2025

North East Community Action Corporation and Subsidiaries

MO

Subrecipient Monitoring Reporting Significant Deficiency

U.S. Department of Agriculture: ALN-10.415 Rural Rental Housing Loan Program Significant Noncompliance – Reporting A. Comments on Findings and Recommendations: We concur with the auditor’s suggestions for filing reports by the dates outlined in the grant agreements. B. Actions Taken or Planned: Mana...

U.S. Department of Agriculture: ALN-10.415 Rural Rental Housing Loan Program Significant Noncompliance – Reporting A. Comments on Findings and Recommendations: We concur with the auditor’s suggestions for filing reports by the dates outlined in the grant agreements. B. Actions Taken or Planned: Management will continue to evaluate their processing and oversight controls with respect to current federal awards and requirements to ensure required program reporting is submitted timely and in accordance with required deadlines. Anticipated completion date: Immediately Responsible party: Vicky Pritchett, Finance Director Contact information for this finding: Vicky Pritchett, Finance Director at 573-213-4811 extension #10102 with questions regarding this plan.

View Audit 406104

Finding 1222227 (2025-001)

Material Weakness 2025

Sewerage and Water Board of New Orleans

LA

Allowable Costs / Cost Principles Cash Management Eligibility § 200.403

Corrective Action Plan: Management acknowledges the finding relative to formal documentation for eligible project costs and will enhance review procedures for monthly WIFIA loans draws to have written contemporaneous evidence from the lender in addition to preliminary approval received for project t...

Corrective Action Plan: Management acknowledges the finding relative to formal documentation for eligible project costs and will enhance review procedures for monthly WIFIA loans draws to have written contemporaneous evidence from the lender in addition to preliminary approval received for project transfers or changes (i.e. renaming of subprojects listed in the loan closing documents within the same scope approved in the loan). The project changes materialized due to a change in expected timing of Sewer Utility work included in joint projects with the City’s Department of Public Works. As a result, standalone projects were executed to complete the required work by the October 2025 deadline mandated in the Sewer Consent Decree. The changes were discussed with the lender upon notification from the Department of Public Works and included in WIFIA quarterly reporting while the formal project approvals are in process. The Utility’s Project Delivery Unit Director is responsible for ensuring that this corrective action is accomplished with an estimated timeline for completion by September 30, 2026. The WIFIA project scope is defined as: I. Water Line Replacement via the Joint Infrastructure (JIRR) Program; II. Sewer Line Replacement via the Joint Infrastructure Recovery Roads (JIRR) Program; III. Sewer System Evaluation and Rehabilitation Program (SSERP); and IV. Sewer Force Main Replacement and Improvement. The eligible activities include, restoration and replacement of damaged gravity sanitary sewer mains, manhole rehabilitation and repair, CIPP lining and point repairs, Water line replacement and repair, Roadway restoration and ADA curb ramp improvements associated with the utility work.

View Audit 406093

Finding 1222224 (2025-001)

Material Weakness 2025

Southern Gateway Public Green Foundation

TX

Reporting Significant Deficiency Internal Control / Segregation of Duties

In its 2025 Compliance Report, auditors made the following finding: Finding 2025‐001: Reporting – Significant deficiency in internal controls over compliance and compliance finding. Criteria: Under this grant program, the Foundation is required to complete semi‐annual performance reports in the Disa...

In its 2025 Compliance Report, auditors made the following finding: Finding 2025‐001: Reporting – Significant deficiency in internal controls over compliance and compliance finding. Criteria: Under this grant program, the Foundation is required to complete semi‐annual performance reports in the Disaster Recovery Grant Reporting (DRGR) system. Condition: During reporting testing, it was noted that the Foundation had not completed or submitted the required performance reports during the year. Cause: The Foundation didn’t implement an effective control for ensuring the required reporting under the grant was completed and submitted timely. Effect: Internal control was not properly designed to identify the required reporting and prevent noncompliance, and the Foundation was not in compliance with the reporting requirement. Recommendation: The Foundation should implement internal controls over the reporting process that ensures the required reporting is submitted in a timely manner. In addition, the Foundation should ensure grant agreements are reviewed in detail so no required reporting is overlooked. In response, Southern Gateway Public Green Foundation commits to the following Corrective Action Plan:  Remedy: In order to remedy this violation, staff will take immediate action to file missing semiannual reports in cooperation with general contractor.  Responsibility for Implementing Remedy: Reports will be filed by Anne Hagan, VP of Strategic Initiatives.  Verification of Remedy: Reports will be reviewed by April Allen, President and CEO, and filing of reports will also be confirmed by April Allen, President and CEO  Deadline for Remedy: As soon as possible but no later than 7/31/26.  Consequences in the event remedy is not undertaken: Failure to file reports could result in request for reimbursement of grant revenue.  Training to Prevent future violations: Reporting requirements and grant agreements will be reviewed by Anne Hagan.  Statement on Consequences of Repeated Violations: If future reports are late or missed, already reimbursed grant payments may have to be repaid and SGPGF may not be eligible for future grant payments.

View Audit 406085

Finding 1222209 (2025-004)

Material Weakness 2025

Cheney Care Community

WA

HUD Housing Programs Subrecipient Monitoring Reporting

Finding 2025-004: Section 232 Loan – Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities Loan, ALN 14.129 Anticipated Completion Date: December 10, 2025 Recommendation: It was recommended the related party reimburse Cheney Care Communit...

Finding 2025-004: Section 232 Loan – Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities Loan, ALN 14.129 Anticipated Completion Date: December 10, 2025 Recommendation: It was recommended the related party reimburse Cheney Care Community. It was also recommended management of Cheney Care Community review their internal controls over the cash disbursement process with the necessary individuals involved in the process to ensure disbursements are not made outside of HUD’s allowable regulations going forward. Action Taken: The related party reimbursed Cheney Care Community. The Executive Director/Administrator and Accountant will review the process and procedures in place with the new accounts payable clerk, and implement controls to ensure HUD requirements are followed going forward. In addition, they will review the review and monitoring controls in place and revise as needed to ensure the proper checks are in place to catch errors.

View Audit 406067

Finding 1222208 (2025-003)

Material Weakness 2025

Cheney Care Community

WA

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking Subrecipient Monitoring § 200.302 § 200.303

Finding 2025-003: Section 232 Loan – Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities Loan, ALN 14.129 Anticipated Completion Date: November 20, 2025 Recommendation: It was recommended the related parties reimburse Cheney Care Commun...

Finding 2025-003: Section 232 Loan – Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities Loan, ALN 14.129 Anticipated Completion Date: November 20, 2025 Recommendation: It was recommended the related parties reimburse Cheney Care Community for the expenditures paid on their behalf. In addition, it was recommended management review the disbursements made during the periods of turnover to confirm there were no other unallowable payments made. It was also recommended management of Cheney Care Community review their internal controls over the cash disbursement process with the necessary individuals involved in the process to ensure the controls are consistently performed going forward. Action Taken: The related parties reimbursed Cheney Care Community for the expenditures paid on their behalf. Since the new accounts payable clerk started in the Summer of 2025, they have been reviewing all of the supporting documentation for disbursements made during the period of turnover, and accumulating any additional corrections that need to be made. They will continue this process for all disbursements from the period of turnover. The Executive Director/Administrator and Accountant will review the process and procedures in place with the new accounts payable clerk, and implement controls to ensure the appropriate facility and general ledger account coding are made going forward. In addition, they will review the review and monitoring controls in place and revise as needed to ensure the proper checks are in place to catch errors.

View Audit 406067

Finding 1222207 (2025-002)

Material Weakness 2025

Cheney Care Community

WA

HUD Housing Programs Reporting Matching / Level of Effort / Earmarking

Finding 2025-002: Section 232 Loan – Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities Loan, ALN 14.129 Anticipated Completion Date: December 31, 2026 Recommendation: It was recommended Cheney Care Community implement internal control...

Finding 2025-002: Section 232 Loan – Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities Loan, ALN 14.129 Anticipated Completion Date: December 31, 2026 Recommendation: It was recommended Cheney Care Community implement internal controls to ensure that the audited financial statements are filed in accordance with the regulatory agreement. Action Taken: On February 8, 2025, the audit was submitted to HUD through REAC. The Executive Director/Administrator and Accountant will review the process and procedures in place for the audit, and implement internal controls to ensure that the audited financial statements are filed in accordance with the regulatory agreement going forward.

View Audit 406067

Finding 1222206 (2025-001)

Material Weakness 2025

Cheney Care Community

WA

HUD Housing Programs Reporting Subrecipient Monitoring

Finding 2025-001: Section 232 Loan – Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities Loan, ALN 14.129 Anticipated Completion Date: September 30, 2026 Recommendation: It was recommended management of Cheney Care Community review thei...

Finding 2025-001: Section 232 Loan – Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities Loan, ALN 14.129 Anticipated Completion Date: September 30, 2026 Recommendation: It was recommended management of Cheney Care Community review their internal controls over the financial reporting and close processes to determine whether additional controls over the preparation of the final trial balances and related schedules can be implemented to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Action Taken: Cheney Care Community will review their internal controls over the financial reporting and close processes to determine whether additional controls need to be implemented going forward.

View Audit 406067

Finding 1222197 (2025-005)

Material Weakness 2025

Sessions Village 202 171-Ee015

WA

HUD Housing Programs Reporting Internal Control / Segregation of Duties

Finding 2025-005: Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157 Anticipated Completion Date: December 31, 2026 Recommendation: It was recommended Sessions Village 202 implement internal controls to ensure that the audited financial...

Finding 2025-005: Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157 Anticipated Completion Date: December 31, 2026 Recommendation: It was recommended Sessions Village 202 implement internal controls to ensure that the audited financial statements are filed in accordance with the regulatory agreement. Action Taken: On February 8, 2025, the audit was submitted to HUD through REAC. The Executive Director/Administrator and Accountant at the management agent will review the process and procedures in place for the audit, and implement internal controls to ensure that the audited financial statements are filed in accordance with the regulatory agreement going forward.

View Audit 406042

Finding 1222196 (2025-004)

Material Weakness 2025

Sessions Village 202 171-Ee015

WA

Allowable Costs / Cost Principles Subrecipient Monitoring Reporting § 200.302 § 200.303

Finding 2025-004: Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157 Anticipated Completion Date: June 11, 2026 Recommendation: It was recommended the related parties reimburse Sessions Village 202 for the expenditures paid on their beh...

Finding 2025-004: Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157 Anticipated Completion Date: June 11, 2026 Recommendation: It was recommended the related parties reimburse Sessions Village 202 for the expenditures paid on their behalf. In addition, it was recommended management review the disbursements made during the periods of turnover to confirm there were no other unallowable payments made. It was also recommended management of Sessions Village 202 review their internal controls over the cash disbursement process with the necessary individuals involved in the process to ensure the controls are consistently performed going forward. Action Taken: The related parties reimbursed Sessions Village 202 for the expenditures paid on their behalf. Since the new accounts payable clerk started in the Summer of 2025, they have been reviewing all of the supporting documentation for disbursements made during the period of turnover, and accumulating any additional corrections that need to be made. They will continue this process for all disbursements from the period of turnover. The Executive Director/Administrator and Accountant at the management agent will review the process and procedures in place with the new accounts payable clerk, and implement controls to ensure the appropriate facility and general ledger account coding are made going forward. In addition, they will review the review and monitoring controls in place and revise as needed to ensure the proper checks are in place to catch errors.

View Audit 406042

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