Corrective Action Plans

Finding 1226338 (2025-002)

Material Weakness 2025

Retired Steelworkers Housing and Health Development Corporation

FL

HUD Housing Programs Reporting Eligibility

FINDING No. 2025-002: Section 236 Interest Reduction Payments, ALN 14.103 Recommendation: Management should implement procedures to ensure the Project verifies tenant eligibility through the EIV system. Action Taken: Staff training has been provided with additional HUD training inclusive of EIV repo...

FINDING No. 2025-002: Section 236 Interest Reduction Payments, ALN 14.103 Recommendation: Management should implement procedures to ensure the Project verifies tenant eligibility through the EIV system. Action Taken: Staff training has been provided with additional HUD training inclusive of EIV reporting and tenant file maintenance. If the audit Oversight Agency has questions regarding these plans, please call Irene Phillips at 954-835-9200. Sincerely yours, Irene Phillips CFO

View Audit 408975

Finding 1226337 (2025-001)

Material Weakness 2025

Retired Steelworkers Housing and Health Development Corporation

FL

HUD Housing Programs Reporting

Oversight Agency for Audit, Retired Steelworkers Housing and Health Development Corporation respectfully submits the following corrective action plan for the year ended December 31, 2025. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite...

Oversight Agency for Audit, Retired Steelworkers Housing and Health Development Corporation respectfully submits the following corrective action plan for the year ended December 31, 2025. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 201, Coral Springs, Florida 33067 Audit period: January 1, 2025 through December 31, 2025 The findings from the December 31, 2025 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. SECTION III – FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT FINDING No. 2025-001: Section 236 Interest Reduction Payments, ALN 14.103 Recommendation: Management should implement procedures to ensure the correct amount is deposited into the replacement reserve account each month. Action Taken: We are researching the underfunding and will ensure the RR account is fully funded on a monthly basis. New procedures have been implemented to review the deposits each month to ensure amounts are proper.

View Audit 408975

Finding 1226312 (2025-005)

Material Weakness 2025

Sangamon County, Illinois

IL

Questioned Costs Reporting Significant Deficiency § 200.303

County department personnel changes have been implemented which address this deficiency. Additional training from the Auditor’s office and state grantors has occurred and will continue for staff in departments that receive federal and state awards.

View Audit 408963

Finding 1226292 (2025-006)

Material Weakness 2025

City of Blackduck

MN

Questioned Costs Subrecipient Monitoring Material Weakness

Recommendation: We recommend that the City implement controls over USDA reports to ensure that they are reviewed prior to submission. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The City will work to ensure t...

Recommendation: We recommend that the City implement controls over USDA reports to ensure that they are reviewed prior to submission. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The City will work to ensure that the management reports are reviewed prior to submission. Name of the contact person responsible for corrective action: Christina Regas, City Administrator Planned completion date for corrective action plan: December 31, 2026.

View Audit 408960

Finding 1226288 (2025-001)

Material Weakness 2025

City of Greensburg

IN

Internal Control / Segregation of Duties Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303

FINDING 2025-001 Finding Subject: COVID-19 Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Amy Borns Contact Phone Number and Email Address: 812-663-8582 ext 1 & aborns@greensburg.in.gov Views of Responsible Officials: We concur with th...

FINDING 2025-001 Finding Subject: COVID-19 Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Amy Borns Contact Phone Number and Email Address: 812-663-8582 ext 1 & aborns@greensburg.in.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: When the SLFRF Compliance report is completed by the Clerk-Treasurer, either the Accounts Payable/Receivable Specialist or the Personnel Administrator will double check it and sign off (or send an email) concurring with the report. Anticipated Completion Date: This will be completed no later than April 30, 2027.

View Audit 408956

Finding 1226265 (2025-004)

Material Weakness 2025

TOWN OF DUSON TOWN HALL

LA

Reporting Internal Control / Segregation of Duties

Criteria In accordance with 31 CFR Sections 35.4(c), the Town should provide an annual report detailing the accounting for the use of the federal award program funds. In addition, the report should be completed and submitted by April 30th of the folllowing year. Condition The Town's annual report di...

Criteria In accordance with 31 CFR Sections 35.4(c), the Town should provide an annual report detailing the accounting for the use of the federal award program funds. In addition, the report should be completed and submitted by April 30th of the folllowing year. Condition The Town's annual report did not reconcile with the amounts recorded in its general ledger. Cause The Town does not have adequate controls and procedures over reporting. Effect The Town's annual report did not reconcile to the total amount expended. Recommendation The Town should review their established policies and procedures and make any necessary changes to ensure an effective control environment. Management's Corrective Action Plan The Town will review their established policies and procedures and make any necessary changes to ensure an effective control environment.

View Audit 408949

Finding 1226264 (2025-003)

Material Weakness 2025

TOWN OF DUSON TOWN HALL

LA

Reporting Internal Control / Segregation of Duties

Criteria In accordance with 31 CFR Sections 35.4(c), the Town should provide an annual report detailing the accounting for the use of the federal award program funds. In addition, the report should be completed and submitted by April 30th of the folllowing year. Condition The Town's annual report di...

Criteria In accordance with 31 CFR Sections 35.4(c), the Town should provide an annual report detailing the accounting for the use of the federal award program funds. In addition, the report should be completed and submitted by April 30th of the folllowing year. Condition The Town's annual report did not reconcile with the amounts recorded in its general ledger. Cause The Town does not have adequate controls and procedures over reporting. Effect The Town's annual report did not reconcile to the total amount expended. Recommendation The Town should review their established policies and procedures and make any necessary changes to ensure an effective control environment. Management's Corrective Action Plan The Town will review their established policies and procedures and make any necessary changes to ensure an effective control environment.

View Audit 408949

Finding 1226251 (2025-001)

Material Weakness 2025

Randolph County, Illinois

IL

Reporting Internal Control / Segregation of Duties

Finding Type: Material Weakness in Compliance and Internal Control over Compliance Finding No. 2025-01 Recommendation: Management should implement procedures to ensure an accurate schedule of expenditures of federal awards with a corresponding reconciliation to the accrual basis trial balance. It is...

Finding Type: Material Weakness in Compliance and Internal Control over Compliance Finding No. 2025-01 Recommendation: Management should implement procedures to ensure an accurate schedule of expenditures of federal awards with a corresponding reconciliation to the accrual basis trial balance. It is recommended that management establish and enforce review and approval procedures related to the schedule of expenditures of federal awards and the accrual basis trial balance. Responsible Official: David M. Holder, Chairman Corrective Action Plan: The County acknowledges the importance regarding the accuracy of the schedule of expenditures of federal awards and corresponding reconciliation to the accrual basis trial balance. The County is considering providing additional training for current personnel along with the employment of additional personnel with suitable knowledge, skills, and experience to fulfill the fund-based accounting duties and other fiscal duties of the Treasurer’s office. Planned completion date for corrective action plan: Fiscal year 2026

View Audit 408913

Finding 1226249 (2025-001)

Material Weakness 2025

American Physical Society

MD

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking Questioned Costs § 200.303 § 200.403

Finding Number: 2025-001 Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Corrective Action Plan In March 2026, following the recognition of the issue, APS immediately conducted a comprehensive review of all payroll related charges, and promptly corrected t...

Finding Number: 2025-001 Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Corrective Action Plan In March 2026, following the recognition of the issue, APS immediately conducted a comprehensive review of all payroll related charges, and promptly corrected the accounting records and updated the SEFA to remove all duplicated costs. In response to this finding, APS implemented additional policies, procedures, and controls to strengthen oversight of payroll processing and grant expenditure reporting. Specifically, APS established a documented review process to identify and investigate duplicate payroll postings prior to and following the upload of payroll data to the general ledger and grant accounting records. In addition, APS enhanced its system change management procedures to ensure that future modifications or upgrades to payroll and grants management systems include validation testing of key controls before implementation. APS will continue to review payroll charges and grant expenditures regularly and maintain documentation of all review and reconciliation activities to ensure costs charged to federal awards are accurate, allowable, properly supported, and recorded only once. APS implemented the corrective action plan on April 30, 2026. Management's contact responsible for the implementation of the Corrective Action Plan: Name: Jane Hopkins Gould Position: Chief Financial & Operating Officer Telephone number: 301-209-3276

View Audit 408898

Finding 1226239 (2025-001)

Material Weakness 2025

Neighborhood Housing Services of the Black Hills, Inc.

SD

Reporting

Finding #2025-001 – Preparation of Consolidated Financial Statements and Schedule of Expenditures of Federal Awards (SEFA) and Audit Adjustments Responsible Individuals: Mike Walker (CEO) and Kathleen Burnham (Accountant) Corrective Action Plan: It is more cost effective for the Organization to hire...

Finding #2025-001 – Preparation of Consolidated Financial Statements and Schedule of Expenditures of Federal Awards (SEFA) and Audit Adjustments Responsible Individuals: Mike Walker (CEO) and Kathleen Burnham (Accountant) Corrective Action Plan: It is more cost effective for the Organization to hire Ketel Thorstenson, LLP, a public accounting firm, to prepare the full disclosure consolidated financial statements as a part of the annual audit process. Management of the Organization has reviewed the consolidated financial statements and SEFA prepared by Ketel Thorstnson, LLP. The consolidated financial statements and SEFA have been compared and reconciled to the internal records maintained by the Organization. Management and the board of directors have been given adequate opportunity to ask questions regarding the consolidated financial statements and note disclosures and have received sufficient response from the auditors prior to final publication of the audited consolidated financial statements and SEFA. Management is satisfied that appropriate actions have been taken to allow them to take responsibility for the consolidated financial statements. Anticipated Completion Date: Ongoing

View Audit 408881

Finding 1226237 (2025-001)

Material Weakness 2025

Western Montana Mental Health Center & Affiliate

MT

Questioned Costs Reporting Significant Deficiency

WMMHC issued additional review procedures for grant expenditures to all WMMHC employees on July 27, 2026, to ensure timely filing and compliance with federal requirements.

View Audit 408880

Finding 1226194 (2025-001)

Material Weakness 2025

Opening Doors, Inc.

CA

Reporting

Auditor's Recommendation: Strengthen controls over reporting by implementing formal procedures to (1} document and retain evidence of supervisory review and approval, (2) maintain copies of all submitted reports and supporting documentation in a centralized location, and (3) establish monitoring pro...

Auditor's Recommendation: Strengthen controls over reporting by implementing formal procedures to (1} document and retain evidence of supervisory review and approval, (2) maintain copies of all submitted reports and supporting documentation in a centralized location, and (3) establish monitoring procedures to ensure reports are submitted timely and submission evidence is retained for audit purposes. Management Response: While the findings do not result in any questioned costs, ODI does not disagree and appreciates the recommendation. Corrective Action: These findings are largely a result of staff turnover. In addition to the auditor's recommendations above, ODI will implement a plan to cross-train staff and prepare desk procedures to document the steps required to prepare, review, submit, and retain the reports. Responsible Personnel: Mark Dawson, COO Implementation Date: Immediate implementation

View Audit 408833

Finding 1226186 (2025-002)

Material Weakness 2025

Low Rent Housing Agency of Burlington

IA

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

To properly ensure internal controls, all segregation of duties will be documented beyond what is currently being done. For additional oversight of monthly reconciliation, it will be documented that this has had a secondary review. Additionally, a board member or another individual will review month...

To properly ensure internal controls, all segregation of duties will be documented beyond what is currently being done. For additional oversight of monthly reconciliation, it will be documented that this has had a secondary review. Additionally, a board member or another individual will review monthly bank statements, invoices, and related documentation. The board will review policy and focus on stricter internal controls to prevent any form of fraud.

View Audit 408828

Finding 1226116 (2025-001)

Material Weakness 2025

Kokomo Housing Authority

IN

HUD Housing Programs Reporting

2025-001 – ALN 14.871 – Housing Voucher Cluster – Eligibility – Payment Standards Management acknowledged the finding and will follow the Auditor's recommendations as listed in the Schedule of Findings and Questioned Costs. Person Responsible for Correction of Finding: Mr. D. Steele, Chief Executive...

2025-001 – ALN 14.871 – Housing Voucher Cluster – Eligibility – Payment Standards Management acknowledged the finding and will follow the Auditor's recommendations as listed in the Schedule of Findings and Questioned Costs. Person Responsible for Correction of Finding: Mr. D. Steele, Chief Executive Officer Projected Completion Date: December 31, 2026

View Audit 408789

Finding 1226107 (2025-002)

Material Weakness 2025

City of Hempstead, Texas

TX

Internal Control / Segregation of Duties Special Tests & Provisions Questioned Costs § 200.303 § 200.328

Finding 2025-002: Insufficient Documentation of Management Review of Section 3 Quarterly and Annual Reporting Planned Corrective Action: Management concurs with the finding. Although the related grant concluded during fiscal year 2025, the City will implement procedures to ensure that future federal...

Finding 2025-002: Insufficient Documentation of Management Review of Section 3 Quarterly and Annual Reporting Planned Corrective Action: Management concurs with the finding. Although the related grant concluded during fiscal year 2025, the City will implement procedures to ensure that future federal program reports, including any applicable Section 3 or similar compliance reports, are subject to documented management review and approval prior to submission. The procedures will require the preparer to provide each report and supporting documentation to City management for review, and evidence of approval, such as a signed review checklist, email approval, or electronic sign-off, will be retained in the grant files. The City Secretary will be responsible for ensuring that documented review and approval procedures are applied to future federal reporting requirements. Anticipated Completion Date: July 2026

View Audit 408755

Finding 1226100 (2025-003)

Material Weakness 2025

The Boulevard of Chicago, Inc.

IL

Reporting

Management and the accounting team will review all contracts and the SEFA prior to the start of the FY26 audit ensuring ALN numbers agree to the contracts. If there is difficulty in locating an ALN number, staff will reach out to funders to ensure the appropriate ALN is noted prior to sending a SEFA...

Management and the accounting team will review all contracts and the SEFA prior to the start of the FY26 audit ensuring ALN numbers agree to the contracts. If there is difficulty in locating an ALN number, staff will reach out to funders to ensure the appropriate ALN is noted prior to sending a SEFA to the auditor.

View Audit 408754

Finding 1226095 (2025-002)

Material Weakness 2025

Oconto County, Wisconsin

WI

Questioned Costs Cash Management Material Weakness

2025-002 Reporting The county implemented procedures to complete review of claims and reconciliations. Planned completion date for corrective action: December 31, 2025

View Audit 408751

Finding 1226090 (2025-003)

Material Weakness 2025

Town of Clarksville

IN

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties § 200.303 § 200.329

FINDING 2025-003 Sherry Lockard, 812-283-1500, slockard@townofclarksville.com A. Coronavirus State and Local Fiscal Recovery Funds (IDOH fire dept grant) The Town concurs with the finding. INDIANA STATE BOARD OF ACCOUNTS 23 The Town will create a form for the Fire Department to use to have a second ...

FINDING 2025-003 Sherry Lockard, 812-283-1500, slockard@townofclarksville.com A. Coronavirus State and Local Fiscal Recovery Funds (IDOH fire dept grant) The Town concurs with the finding. INDIANA STATE BOARD OF ACCOUNTS 23 The Town will create a form for the Fire Department to use to have a second person review any reporting and requests for reimbursements when federal funds are involved. The form will be an attachment at the end of this document, therefore no further action is necessary.

View Audit 408741

Finding 1226084 (2025-025)

Material Weakness 2025

State of California

CA

Subrecipient Monitoring Procurement, Suspension & Debarment Reporting § 200.302 § 200.303 § 200.328 § 200.329

Reporting California Governor’s Office of Emergency Services Based on CSA's Federal Compliance Audit Report for the Fiscal Year Ended June 30, 2024 - Finding 2024-020, Cal OES revised its FFATA reporting procedures and has taken several actions to strengthen internal controls, resolve discrepancies ...

Reporting California Governor’s Office of Emergency Services Based on CSA's Federal Compliance Audit Report for the Fiscal Year Ended June 30, 2024 - Finding 2024-020, Cal OES revised its FFATA reporting procedures and has taken several actions to strengthen internal controls, resolve discrepancies among reporting systems, and ensure staff are fully trained to maintain compliance with all FFATA reporting requirements. In March of 2025, Cal OES developed the Financial Administrative Branch (FAB) FFATA SOP (Attachment #1) for FFATA reporting which outlines steps for collecting subrecipient data, preparing reports, and submitting reports within the required time frames. In addition, Cal OES enhanced its existing FFATA reporting procedures using a software platform to provide accurate data reports for federally funded grant projects. These reports are then used to ensure accurate reporting and timely updates to existing FFATA records. To ensure clear assignment of accountability, Cal OES FAB analysts are responsible for completing and submitting FFATA reporting accurately, with all required fields completed, and obtaining review and approval from their respective peer reviewer analysts and managers to verify accuracy and completeness. Furthermore, in June of 2025, Cal OES FAB staff were provided with a comprehensive FFATA training course to ensure staff understand the process and reporting requirements for FFATA (Attachment #2). Cal OES continues to provide training for staff responsible for submitting FFATA reports during onboarding and on an as-needed basis. Because the revised FFATA reporting procedures were not fully implemented by the close of Fiscal Year 2024-2025, Cal OES was not able to capture all projects concluding the reporting cycle. Moreover, the procedures have been fully implemented and in effect since the start of Fiscal Year 2025-2026. Estimated Implementation Date: Implemented Contact: - Heidi Palchik, Chief, Recovery Financial Administration Branch lnteragency, Recovery Coordination Section

View Audit 408731

Finding 1226068 (2025-019)

Material Weakness 2025

State of California

CA

Procurement, Suspension & Debarment Subrecipient Monitoring Allowable Costs / Cost Principles § 200.302 § 200.303 § 200.328 § 200.329

Reporting California Department of Social Services CDSS will implement improved procedures and consider if a grant management solution would be feasible and necessary. CDSS has already begun establishing a process that determines and documents whether funding actions are reportable subrecipients or ...

Reporting California Department of Social Services CDSS will implement improved procedures and consider if a grant management solution would be feasible and necessary. CDSS has already begun establishing a process that determines and documents whether funding actions are reportable subrecipients or contractors. CDSS has also begun establishing a field within the CDSS accounting system that identifies subrecipients at the contract level so this data is automatically included when extracted for FFATA reporting, which will ensure reports are submitted accurately and timely. CDSS is also developing a Federal Reporting Dashboard to track all grants with FFATA reporting requirements, including due dates and completion status. Additionally, CDSS will designate a primary point and a backup person within the Federal Reporting Section to monitor all FFATA reporting deadlines. This designated staff member will issue 45 days advance notifications to the grant owner and reviewing manager, set calendar reminders for grant owners, and provide regular status updates to Accounting Management. To strengthen timely compliance, these reminders will also instruct grant owners to complete the FFATA submission 10 days before the federal deadline, ensuring sufficient time to resolve any errors that may occur during the upload process. Estimated Implementation Date: November 2026 Contact: - Rosali Bautista, Chief, Accounting and Reporting Bureau, Accounting and Fiscal Systems Branch, Finance and Accounting Division

View Audit 408731

Finding 1226067 (2025-018)

Material Weakness 2025

State of California

CA

Matching / Level of Effort / Earmarking Subrecipient Monitoring Reporting § 200.303 § 200.329 § 200.332

Special Tests and Provisions California Department of Social Services CDSS agrees in part and disagrees in part with this finding. Section 10.1 of the State Plan, “Effective Internal Controls” which establishes the review cycle for CDSS’s monitoring activities inadvertently contains a conflicting ti...

Special Tests and Provisions California Department of Social Services CDSS agrees in part and disagrees in part with this finding. Section 10.1 of the State Plan, “Effective Internal Controls” which establishes the review cycle for CDSS’s monitoring activities inadvertently contains a conflicting timing requirement for contractor reviews. This finding is based upon the language in subsection 10.1.2 “Fiscal management practices,” which states that CDSS must conduct contract monitoring review of each contracting agency every three years. However, subsection 10.1.1 “Organizational structure to support integrity and internal controls,” and the related regulation in Title 5 California Code of Regulations Section 18023(b), both require onsite monitoring every three years, or as resources permit. Importantly, CDSS conducts an annual risk assessment and schedules monitoring visits based on both contractor risk level and time since previous review. Staffing constraints required prioritizing higher-risk contractors, which resulted in two lower-risk contractors not receiving onsite monitoring within a threeyear review cycle. This was not due to a lack of internal controls, but a strategic decision based on resource levels, level of risk, and within the allowable parameters of Subsection 10.1.1 of the State Plan. CDSS will correct this section within the State Plan to ensure that it is clear that all contract monitoring is subject to the same every three years, or as resources permit, requirement. Estimated Implementation Date: October 2027 Contact: - Jeff Fowler, Child Care Administration Bureau Chief Central Operations Branch, Child Care and Development Division

View Audit 408731

Finding 1226061 (2025-016)

Material Weakness 2025

State of California

CA

Matching / Level of Effort / Earmarking Procurement, Suspension & Debarment Subrecipient Monitoring § 200.302 § 200.303 § 200.328 § 200.329 § 200.331

Reporting California Department of Social Services CDSS agrees with this finding and has already begun developing appropriate procedures that will support this recommendation, using the CCDF program area as a model. CDSS will implement improved procedures and consider if a grant management solution ...

Reporting California Department of Social Services CDSS agrees with this finding and has already begun developing appropriate procedures that will support this recommendation, using the CCDF program area as a model. CDSS will implement improved procedures and consider if a grant management solution would be feasible and necessary. CDSS has already begun establishing a process that determines and documents whether funding actions are reportable subrecipients or contractors. CDSS has also begun establishing a field within the CDSS accounting system that identifies subrecipients at the contract level so this data is automatically included when extracted for FFATA reporting, which will ensure reports are submitted accurately and timely. CDSS is also developing a Federal Reporting Dashboard to track all grants with FFATA reporting requirements, including due dates and completion status. Additionally, CDSS will designate a primary point and a backup person within the Federal Reporting Section to monitor all FFATA reporting deadlines. This designated staff member will issue 45 days advance notifications to the grant owner and reviewing manager, set calendar reminders for grant owners, and provide regular status updates to Accounting Management. To strengthen timely compliance, these reminders will also instruct grant owners to complete the FFATA submission 10 days before the federal deadline, ensuring sufficient time to resolve any errors that may occur during the upload process. Estimated Implementation Date: November 2026 Contact: - Jeff Fowler, Child Care Administration Bureau Chief Central Operations Branch, Child Care and Development Division - Rosali Bautista, Chief, Accounting and Reporting Bureau, Accounting and Fiscal Systems Branch, Finance and Accounting Division

View Audit 408731

Finding 1226051 (2025-012)

Material Weakness 2025

State of California

CA

Subrecipient Monitoring Reporting Procurement, Suspension & Debarment § 200.302 § 200.303 § 200.328 § 200.329

Reporting California Department of Social Services CDSS does not agree with this finding that the FFATA reporting deadline was not met for the subaward reporting for all 58 counties for the Foster Care grant. The FFY 2025 FFATA report was originally submitted on November 27, 2024, which met the fede...

Reporting California Department of Social Services CDSS does not agree with this finding that the FFATA reporting deadline was not met for the subaward reporting for all 58 counties for the Foster Care grant. The FFY 2025 FFATA report was originally submitted on November 27, 2024, which met the federal submission deadline of November 30, 2024. During this initial submission, however, data lines for two counties failed to upload into the legacy FSRS.gov system and required additional research. The corrected data was subsequently submitted on December 10, 2024. Since that time, FSRS.gov has migrated to SAM.gov, and the new system only displays the most recent submission date as the official record. It appears that SAM.gov does not retain or display the historical log of submissions FSRS.gov. As a result, the system reflects only the December 10 submission date, even though the original, timely submission occurred on November 27, 2024. CDSS is developing a Federal Reporting Dashboard to track all grants with FFATA reporting requirements, including due dates and completion status. Additionally, CDSS will designate a primary point and a backup person within the Federal Reporting Section to monitor all FFATA reporting deadlines. This designated staff member will issue 45 days advance notifications to the grant owner and reviewing manager, set calendar reminders for grant owners, and provide regular status updates to Accounting Management. To strengthen timely compliance, these reminders will also instruct grant owners to complete the FFATA submission 10 days before the federal deadline, ensuring sufficient time to resolve any errors that may occur during the upload process. Estimated Implementation Date: November 2026 Contact: - Rosali Bautista, Chief, Accounting and Reporting Bureau, Accounting and Fiscal Systems Branch, Finance and Accounting Division

View Audit 408731

Finding 1226035 (2025-005)

Material Weakness 2025

State of California

CA

Reporting Subrecipient Monitoring Allowable Costs / Cost Principles § 200.302 § 200.303 § 200.328 § 200.329

Reporting Employment Development Department Recognizing the finding does not include any questioned costs, EDD agrees that during the sampled time period it did not have a formal reconciliation process to ensure Form 9130 reports align with the general ledger. As a result, differences emerged betwee...

Reporting Employment Development Department Recognizing the finding does not include any questioned costs, EDD agrees that during the sampled time period it did not have a formal reconciliation process to ensure Form 9130 reports align with the general ledger. As a result, differences emerged between the amounts reported on the Form 9130 and those reflected in the Administrative Fund (0870) general ledger. Since then, EDD’s Fiscal Programs Division (FPD) formed a workgroup at the end of 2025 to identify key staff responsible for establishing a formal reconciliation process. This effort is documented in an artifact titled, General Ledger 9130 to SEFA Recon Procedure (Final)’. The workgroup consisted of representatives from the Budget and Forecasting Section and the Accounting Section and resulted in the creation of a draft reconciliation procedure. FPD assigned Accounting Section personnel to lead the overall process, including coordinating deadlines, reviewing completed reconciliations, and ensuring any issues are investigated and resolved. Budget and Forecasting Section staff are responsible for providing accurate and timely expenditure data, while the Accounting Section prepares the reconciliations and documents any variances. In addition, EDD provided initial training to staff to ensure a consistent understanding of the new procedures and responsibilities. In late May 2026, EDD began its first pilot testing of the new reconciliation procedure using data from the quarter ending March 2026. The pilot was successful, and EDD has finalized the reconciliation procedures and distributed them to all relevant staff. Estimated Implementation Date: Currently implemented Contact: - Diane Underwood, Division Chief, Unemployment Insurance Branch

View Audit 408731

Finding 1226030 (2025-002)

Material Weakness 2025

State of California

CA

Procurement, Suspension & Debarment Subrecipient Monitoring Matching / Level of Effort / Earmarking § 200.302 § 200.303 § 200.328 § 200.329

Reporting California Department of Education Partially Concur. The Department agrees that timely submission of FFATA reports is an important requisite. However, the circumstances that triggered the late submission were created by the control agency shifting to a new system without ensuring it met ev...

Reporting California Department of Education Partially Concur. The Department agrees that timely submission of FFATA reports is an important requisite. However, the circumstances that triggered the late submission were created by the control agency shifting to a new system without ensuring it met everyone’s needs, not by a lack of Department staffing or resources. Nevertheless, to strengthen existing procedures, the Department will review processes and determine if contingency procedures are appropriate and feasible. Management will also continue to monitor federal system changes, document implementation challenges, and maintain communication with federal agencies to ensure awareness of external system limitations that could affect reporting timelines. The Department will continue to work with the U.S. General Services Administration on automated reporting solutions to mitigate any future late submittals and to ensure timely submission of all FFATA reports. Estimated Implementation Date: September 30, 2026 Contact: - Yiping Hu, Accounting Administrator, Fiscal and Administrative Services Division

View Audit 408731

Corrective Action Plans

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