Corrective Action Plans

Finding 1220160 (2025-001)

Material Weakness 2025

DC

Eligibility Reporting Matching / Level of Effort / Earmarking § 200.303

The Department of Human Services (DHS) and Department of Health Care Finance (DHCF) DC Access System (DCAS) team agree with the findings. For the twelve (12) findings, DHS/ESA has identified the description of the deficiencies, examined the magnitude and geographic extent of the deficiencies, identi...

The Department of Human Services (DHS) and Department of Health Care Finance (DHCF) DC Access System (DCAS) team agree with the findings. For the twelve (12) findings, DHS/ESA has identified the description of the deficiencies, examined the magnitude and geographic extent of the deficiencies, identified the actions completed to eliminate the deficiencies. The District will focus on efforts that will create the maximum impact, which includes creating new options for collaboration, streamlining current communication, and introducing cross-functional prioritization. These strategies will help the District move projects toward completion and are rooted in continuous quality improvement. To guide its strategic efforts and track its impact, DHS has outlined the following four phases of corrective action plans to be taken to ensure the deficiencies will be eliminated: • Review and Prioritization, • Design and Development, • Implementation, and • Monitor and Evaluation. Each phase has several process steps including a completion document that signals the permission to move to the next phase. The detailed process steps are documented under DHS’ Consolidated Semi-Annual SNAP Advance Warning Letter Corrective Action Plan and FFY2026 Quality Control Corrective Action Plan reports. The corrective action plan is facilitated by the Quality Improvement Program and since implementing this process in January 2021, the District has identified root causes for errors and gaps in internal auditing and evaluation processes. Therefore, the flow of the semi-annual corrective action plans reflects the District’s commitment to a collaborative corrective action plan - expanding the data analysis section to include data and analysis of internal methods, a complete summary of each phase completed, and a timeline for upcoming phase/project completion.

View Audit 405318

Finding 1220155 (2025-005)

Material Weakness 2025

City of Hialeah, Florida

FL

Reporting

AUDIT RESPONSE 5: SD2025-005 – INACCURATE REPORTING OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE The City recognizes that the original SEFA submitted for fiscal year 2025 contained omissions and reporting inaccuracies that required subsequent revisions. Corrective...

AUDIT RESPONSE 5: SD2025-005 – INACCURATE REPORTING OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE The City recognizes that the original SEFA submitted for fiscal year 2025 contained omissions and reporting inaccuracies that required subsequent revisions. Corrective Action Taken:  Researched, reconciled, and corrected SEFA data in collaboration with auditors and grant managers.  Improved departmental communication during the review. Corrective Action Planned:  Centralize grant administration and reporting.  Ensure the SEFA is reviewed and approved by the Finance Division Director prior to submission to the auditor. Responsible Party: Citywide grants administration / Finance Division Anticipated Completion Date: FY 2026 year-end close.

View Audit 405308

Finding 1220139 (2025-005)

Material Weakness 2025

Dallas County

TX

Special Tests & Provisions Reporting Significant Deficiency § 200.303

Corrective action plan: Dallas County HCVP will expand inspection capacity by hiring additional full-time and contractual inspectors, including an Inspector Supervisor to ensure timely completion of all inspections. Additionally, the Housing Supervisor will review inspection status regularly to ensu...

Corrective action plan: Dallas County HCVP will expand inspection capacity by hiring additional full-time and contractual inspectors, including an Inspector Supervisor to ensure timely completion of all inspections. Additionally, the Housing Supervisor will review inspection status regularly to ensure compliance with HUDrelated inspection schedules. Increasing staffing levels will allow the program to meet HUD-required timeframes consistently and reduce the likelihood of delays. Implementation dates: September 30, 2026 Responsible persons: Kesete Yohannes, Assistant Director of Housing

View Audit 405307

Finding 1220130 (2025-004)

Material Weakness 2025

Civil Air Patrol

AL

Reporting Period of Performance

We concur with the finding and are implementing procedures to address all issues. The untimely submission of the SF-425 resulted from deficiencies in internal controls during the fiscal year end closeout process. Specifically, responsibilities for tracking and submitting required federal reports wer...

We concur with the finding and are implementing procedures to address all issues. The untimely submission of the SF-425 resulted from deficiencies in internal controls during the fiscal year end closeout process. Specifically, responsibilities for tracking and submitting required federal reports were not sufficiently defined, and monitoring procedures did not ensure that reporting deadlines were met. CAP is implementing corrective actions to strengthen its reporting processes. These actions include establishing a formal reporting calendar that identifies all required federal reporting deadlines, clearly assigning responsibility and backup responsibility for report preparation and submission, and implementing a documented supervisory review process to verify that reports are submitted timely. These corrective measures are intended to ensure compliance with reporting requirements and improve accountability. CAP expects these actions to be fully implemented by 30 September 2026.

View Audit 405305

Finding 1220116 (2025-006)

Material Weakness 2025

Scotts Bluff County School District No. 16 Gering Public Schools

NE

Reporting Matching / Level of Effort / Earmarking § 200.512

All programs Recommendation: We recommend the District implement procedures to monitor audit reporting deadlines and ensure the data collection form and reporting package are submitted to the Federal Audit Clearinghouse within the required timeframe. Explanation of disagreement with audit finding: T...

All programs Recommendation: We recommend the District implement procedures to monitor audit reporting deadlines and ensure the data collection form and reporting package are submitted to the Federal Audit Clearinghouse within the required timeframe. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We had a different auditing firm and were under the impression they had submitted it. We will ensure we will not be late again and submit it on time. . Name(s) of the contact person(s) responsible for corrective action: Stacy Rodriguez Director of Finance Planned completion date for corrective action plan: September 2025

View Audit 405300

Finding 1220090 (2025-003)

Material Weakness 2025

Northeastern Regional Association of Coastal Ocean Observing Systems

NH

Subrecipient Monitoring Procurement, Suspension & Debarment Reporting § 200.332

Audit Finding Reference Number: 2025 – 003 Finding: NERACOOS submitted FFATA reports for the initial subaward agreements; however, the reports were not updated timely for subsequent subaward amendments. Specifically, amended subaward amounts and amendment dates were not reported timely and accuratel...

Audit Finding Reference Number: 2025 – 003 Finding: NERACOOS submitted FFATA reports for the initial subaward agreements; however, the reports were not updated timely for subsequent subaward amendments. Specifically, amended subaward amounts and amendment dates were not reported timely and accurately in SAM.gov. Corrective Action Plan: Develop a subaward amendment tracking log to record all subaward modifications, including amendment dates, revised subaward amounts, and FFATA reporting due dates. The log will be updated each time a subaward amendment is executed. Establish a written procedure requiring that any subaward amendment triggering a change in amount or key data be reported in SAM.gov within the required timeframe (no later than the end of the month following the month in which the obligation or award was made). Designate a staff member responsible for FFATA reporting compliance and assign a backup to ensure coverage during absences. Implement a quarterly reconciliation between executed subaward agreements/amendments and SAM.gov reporting records to identify and remediate any unreported or inaccurate entries. Provide training to relevant Finance and Grants Management staff on FFATA reporting requirements under 2 CFR Section 200.332 and SAM.gov reporting procedures. Retroactively update SAM.gov for any subaward amendments identified during the audit as not having been reported or reported inaccurately. Responsible Official: Jake Kritzer, Executive Director Anticipated Completion Date: August 31, 2026 (retroactive corrections); ongoing quarterly reconciliation beginning July 2026

View Audit 405299

Finding 1220089 (2025-002)

Material Weakness 2025

Northeastern Regional Association of Coastal Ocean Observing Systems

NH

Allowable Costs / Cost Principles Cash Management Material Weakness

Audit Finding Reference Number: 2025 – 002 Finding: NERACOOS recorded federal grant revenue for certain grants related to FY2025 activities in FY2026, based on the timing of reimbursement receipts rather than when the underlying expenditures were incurred. As a result, federal grant revenue and rela...

Audit Finding Reference Number: 2025 – 002 Finding: NERACOOS recorded federal grant revenue for certain grants related to FY2025 activities in FY2026, based on the timing of reimbursement receipts rather than when the underlying expenditures were incurred. As a result, federal grant revenue and related receivables for FY2025 were understated, while revenue in FY2026 was overstated for the related amounts. In addition, this may lead to misstatements in financial reporting if similar cutoff issues occur in future periods. Corrective Action Plan: Develop and implement a formal year-end revenue cutoff checklist specifically for federal grants. The checklist will require a review of all active federal awards within 60 days and then again in 30 days of fiscal year-end to identify allowable expenditures incurred but not yet reimbursed. Establish a procedure to record grant receivables and revenue accruals for identified unbilled costs prior to closing the accounting records each fiscal year. Train the Finance staff responsible for grant accounting on the accrual basis requirements under 2 CFR Part 200 and proper cutoff procedures. Incorporate a supervisory review step into the year-end close process to verify that all grant-related receivables and revenue accruals have been posted before the books are closed. Incorporate the cutoff review into the annual audit preparation timeline and document results for auditor review. Review the FY2025 federal financial reports submitted for CFDA 11.012 to determine whether any amendments or corrections are required, and coordinate with the federal agency as appropriate. Prior to submission of any federal financial reports (e.g., SF-425 Federal Financial Reports), confirm that recorded grant revenue and expenditures reflect all accrued amounts throughout the reporting period. Review draft federal financial reports against the general ledger before submission to verify consistency between reported and recorded amounts. Responsible Official: Jake Kritzer, Executive Director Anticipated Completion Date: September 30, 2026

View Audit 405299

Finding 1220059 (2025-001)

Material Weakness 2025

Chisholm-Hibbing Airport Authority

MN

Internal Control / Segregation of Duties Reporting Significant Deficiency

Actions Planned - The Authority is not in position to hire additional staff members for the sole purpose of eliminated the segregation of duties finding from our audit. The Airport Office Adminstrator communicates with the Executive Director and commission members regarding all major account transac...

Actions Planned - The Authority is not in position to hire additional staff members for the sole purpose of eliminated the segregation of duties finding from our audit. The Airport Office Adminstrator communicates with the Executive Director and commission members regarding all major account transactions, including the recording of recurring and non-recurring jounral entry adjustments. The commission meets monthly and closely monitors the financial information provded to them. Official responsible: Airport Office Administrator Planned Completion Date - On-going monitoring Disagreement with Finding - none, the Authority concurs with the finding. Plan to Monitor - The Authority is aware of the situation and will monitor, as it deems appropriate. Monitoring will include commission member oversight for the interim and year-end reporting.

View Audit 405239

Finding 1220033 (2025-001)

Material Weakness 2025

Gwinnett Walton Habitat for Humanity, Inc.

GA

Reporting Significant Deficiency Internal Control / Segregation of Duties § 200.507

Description of Finding: The organization did not complete and submit its Single Audit within the required timeframe due to special projects (mortgage sales) that dramatically limited staff bandwidth in key financial management positions, resulting in delays in audit coordination and reporting and th...

Description of Finding: The organization did not complete and submit its Single Audit within the required timeframe due to special projects (mortgage sales) that dramatically limited staff bandwidth in key financial management positions, resulting in delays in audit coordination and reporting and the timing of commencing the audit.Statement of Concurrence: The organization concurs with this finding.Corrective Action: The organization has resolved the underlying cause of this finding by streamlining the data collection process related to mortgage sales transactions. Furthermore, the organization is in the process of reorganizing the financial department to streamline workflows. The Staff Accountant in partnership with the Director of Finance & Administration are responsible for oversight of financial reporting, compliance with Uniform Guidance (2 CFR Part 200), and coordination of the Single Audit process.Corrective actions implemented include:• Departmental reorganization is underway to streamline workflows and provide clear ownership of departmental responsibilities (including single audit compliance) between Staff Accountant and Director of Finance and Administration.• Development of a formal audit timeline and internal milestones to ensure timely audit initiation, completion, and submission.• Strengthening of internal controls over financial reporting and audit documentation.• Ongoing communication and coordination with external auditors to ensure compliance with federal audit requirements. These actions ensure that future Single Audits will be completed and submitted timely in accordance with Uniform Guidance.Status of Finding: This finding resulted from unexpected special projects that limited financial staff bandwidth as well as fragmented workflows, which have both been addressed. Corrective action is in process.Projected Completion Date: Corrective action completed as of 6/5/2026, with ongoing monitoring incorporated into standard financial management procedures.

View Audit 405221

Finding 1219674 (2025-004)

Material Weakness 2025

City of Long Beach

CA

HUD Housing Programs Eligibility Reporting § 200.303

Program: Section 8 Housing Choice Vouchers (HCV) Finding: 2025-004 Finding Title: Internal Controls Over Participants Reexaminations Identification as a repeat finding if applicable: 2024-007 Contact Person: Michelle Mel-Duch, Housing Administrative and Financial Services Officer, Health & Human Ser...

Program: Section 8 Housing Choice Vouchers (HCV) Finding: 2025-004 Finding Title: Internal Controls Over Participants Reexaminations Identification as a repeat finding if applicable: 2024-007 Contact Person: Michelle Mel-Duch, Housing Administrative and Financial Services Officer, Health & Human Services Department, (562) 570-5344, Michelle.Mel-Duch@longbeach.gov Planned Actions: HACLB has updated its SEMAP Quality Control sample size worksheet to ensure the minimum required sample size is calculated using the total number of assisted families, in accordance with HUD SEMAP Indicator 3 requirements. The revised worksheet will be used for future quality control reviews to ensure compliance with federal requirements. In addition, HACLB has transitioned to the MRI housing management software platform, which provides enhanced reporting capabilities to generate accurate listings of assisted families, support the selection and tracking of quality control samples. To strengthen internal controls, HACLB will implement and document completion of reviews of reexamination files selected for SEMAP quality control. Expected Completion Date: December 31, 2026

View Audit 405210

Finding 1219670 (2025-002)

Material Weakness 2025

City of Long Beach

CA

HUD Housing Programs Procurement, Suspension & Debarment Allowable Costs / Cost Principles § 200.303

Program: Section 8 Housing Choice Vouchers (HCV) Finding: 2025-002 Finding Title: Internal Controls and Compliance over the Timeliness of Housing Choice Voucher Participant Re-examination and Recertification Identification as a repeat finding if applicable: 2024-003 Contact Person: Michelle Mel-Duch...

Program: Section 8 Housing Choice Vouchers (HCV) Finding: 2025-002 Finding Title: Internal Controls and Compliance over the Timeliness of Housing Choice Voucher Participant Re-examination and Recertification Identification as a repeat finding if applicable: 2024-003 Contact Person: Michelle Mel-Duch, Housing Administrative and Financial Services Officer, Health & Human Services Department, (562) 570-5344, Michelle.Mel-Duch@longbeach.gov Planned Actions: Staffing Augmentation and Organizational Support HACLB has recruited additional Housing Specialists to support management of the high-volume Housing Choice Voucher (HCV) Program, improve processing efficiency, and ensure compliance with HUD requirements and program deadlines. HACLB has hired a Housing Administrative and Financial Services Officer and a Housing Operations Program Officer. These positions provide strategic oversight of program operations, staff productivity, workload management, resource allocation, and performance monitoring. As of June 23, 2026, eight Housing Specialists have been hired and have undergone training. HACLB has requested renewal of the supervisory eligibility list to fill several vacant supervisory positions critical to operational oversight and staff development. To further reduce the backlog, HACLB has reassigned duties and created a dedicated team responsible for tracking overdue recertifications, monitoring progress, and implementing measures to ensure ongoing compliance. Contracted Support Services To accelerate backlog reduction efforts, HACLB renewed its contract with an external agency to provide dedicated assistance with processing overdue reexaminations. Additionally, HACLB has initiated a competitive procurement process to secure supplemental third-party support services to assist with backlog clearance and provide additional operational capacity while newly hired staff complete training and onboarding. Technology Improvements HACLB has transitioned to a new housing management software platform (MRI PHA Pro) designed to improve annual recertification tracking, workflow management, reporting capabilities, and productivity monitoring. The software system provides: • Enhanced monitoring of annual recertification deadlines. • Improved workflow tracking and assignment management. • Dashboard reporting and exception monitoring. • Increased visibility into staff productivity and workload distribution. • Improved compliance monitoring Additional Actions Taken to Date HACLB has implemented several operational improvements to strengthen internal controls and maintain compliance: Process Improvements • Revised recertification workflows and assignment procedures. • Established productivity targets and performance expectations for Housing Specialists. • Utilized MRI dashboards and exception reports to identify overdue cases and trigger management escalation procedures. • Increased supervisory oversight of workload distribution and case processing. Data Monitoring and Oversight Program management and data analytics staff actively monitor program performance and backlog reduction efforts through: • Regular forecasting and workload analysis. • Prioritization of high-risk and overdue cases. • Exception reporting and trend monitoring. • Ongoing evaluation of staffing needs and productivity levels. Staff Training HACLB continues to provide training for both new and existing staff on: • HUD recertification requirements. • Timeliness standards. • Case processing procedures. • Workflow management and quality assurance practices. Expected Completion Date: December 31, 2026

View Audit 405210

Finding 1219662 (2025-001)

Material Weakness 2025

Antonio B. Won Pat International Airport Authority, Guam

GU

Reporting Cash Management

Finding No. 2025-001 Preparation of the schedule of expenditures of federal awards Responsible Personnel: John M. Quinata, Executive Manager During the audit, the Authority reviewed the federally funded airport improvement projects (AIP) to ensure that all applicable items charged to the projects we...

Finding No. 2025-001 Preparation of the schedule of expenditures of federal awards Responsible Personnel: John M. Quinata, Executive Manager During the audit, the Authority reviewed the federally funded airport improvement projects (AIP) to ensure that all applicable items charged to the projects were accounted for. Correcting entries were made to FY25 and FY24 was restated to address the identified misstatements. To prevent future issues from occurring, the Authority has updated its procedures to enhance the process for identifying federal receivables and controls for reviewing and reconciling the SEFA with financial statement records. Timely reviews will take place at least quarterly. Any future changes to the process must be discussed, agreed upon with management, and documented.

View Audit 405200

Finding 1219647 (2025-001)

Material Weakness 2025

Glens Falls Housing Authority

NY

Reporting Internal Control / Segregation of Duties

CORRECTIVE ACTION: Management is in agreement with the auditor’s recommendations. We are confident that our March 31, 2026 audit will be completed by the December 31, 2026 deadline. If there are questions regarding this corrective action plan, please contact Ms. Stephanie Nasr, Executive Director at...

CORRECTIVE ACTION: Management is in agreement with the auditor’s recommendations. We are confident that our March 31, 2026 audit will be completed by the December 31, 2026 deadline. If there are questions regarding this corrective action plan, please contact Ms. Stephanie Nasr, Executive Director at (518) 793-2583.

View Audit 405188

Finding 1219645 (2025-002)

Material Weakness 2025

South Texas Development Council

TX

Reporting Subrecipient Monitoring § 200.512

Finding 2025-002 - Untimely Submission of the Single Audit Reporting Package to the Federal Audit Clearinghouse Noncompliance | Repeat Finding | Entity-Wide Questioned Costs: None Repeat Finding: Yes - repeat of Finding 2024-004; fourth consecutive year Responsible Official(s): Juan E. Rodriguez, Ex...

Finding 2025-002 - Untimely Submission of the Single Audit Reporting Package to the Federal Audit Clearinghouse Noncompliance | Repeat Finding | Entity-Wide Questioned Costs: None Repeat Finding: Yes - repeat of Finding 2024-004; fourth consecutive year Responsible Official(s): Juan E. Rodriguez, Executive Director (primary); Josafat Saldivar, Finance Director Anticipated Completion Date: June 30, 2027 (for the fiscal year 2026 single audit cycle) Management Response: STDC concurs with the finding. The fiscal year 2024 single audit reporting package was submitted to the Federal Audit Clearinghouse after the nine-month regulatory deadline, marking the fourth consecutive year of late submission. STDC understands that timely submission is essential to maintaining compliance and to supporting removal of its high-risk auditee designation. Corrective Action to Be Taken: STDC will adopt a board-approved audit readiness calendar under which year-end records are closed and reconciled within 90 days of fiscal year end, the auditor is engaged by December, and complete supporting documentation is delivered to the auditor by February. STDC will target Federal Audit Clearinghouse submission by April of each year, well ahead of the nine-month deadline. For the fiscal year 2025 audit, STDC has worked to complete the engagement on an accelerated schedule with a target submission on or before the June 30, 2026 deadline. Achieving timely submission for the fiscal year 2025 cycle and maintaining it thereafter is expected to support removal of the high-risk auditee designation in a future audit cycle.

View Audit 405186

Finding 1219608 (2025-001)

Material Weakness 2025

South Texas Development Council

TX

Reporting

Finding 2025-001 - Untimely Submission of Financial Status and Expenditure Reports, All Major Programs Significant Deficiency in Internal Control over Compliance and Noncompliance | Repeat Finding Questioned Costs: None Repeat Finding: Yes - repeat of Findings 2024-001 and 2024-003 Responsible Offic...

Finding 2025-001 - Untimely Submission of Financial Status and Expenditure Reports, All Major Programs Significant Deficiency in Internal Control over Compliance and Noncompliance | Repeat Finding Questioned Costs: None Repeat Finding: Yes - repeat of Findings 2024-001 and 2024-003 Responsible Official(s): Josafat Saldivar, Finance Director (primary); Juan E. Rodriguez, Executive Director (oversight and approval) Anticipated Completion Date: September 30, 2026 Management Response: STDC concurs with the finding. STDC acknowledges that financial status and expenditure reports were submitted late across all major programs during fiscal year 2025. STDC recognizes that the submission calendar implemented as the prior-year corrective action did not operate effectively, in part because financial report preparation depends on a single staff member in the finance function. Corrective Action to Be Taken: STDC will implement a hard financial-report close calendar establishing preparation deadlines no later than 10 days after each reporting period end, with required submission well in advance of each contractual due date. STDC will cross-train a second staff member to prepare financial status reports so that submissions do not depend on a single individual. The Executive Director will review the submission calendar monthly, and STDC will track actual submission dates against contractual deadlines on a monitoring dashboard reviewed at each board finance committee meeting. STDC expects these measures to restore timely reporting across all programs during fiscal year 2026.

View Audit 405186

Finding 1219592 (2025-001)

Material Weakness 2025

Crockett Resource Center for Independent Living, INC

TX

Reporting § 200.512

Management will update procedures to include calendar-based tracking of the single audit and the Data Collection Form submission to the FAC. Moving forward, the Executive Director will verify the Data collection Form and reporting package were submitted to the FAC by Finance Director by deadline

View Audit 405177

Finding 1219561 (2025-002)

Material Weakness 2025

MEMORIAL ASSISTANCE MINISTRIES, INC.

TX

Reporting § 200.203 § 200.510

Finding #2025-002 – Reporting – Significant Deficiency and Other Noncompliance. Applicable federal program: Department of Treasury, Passed through Harris County, Texas, Assistance Listing #: 21.027 – COVID-19 – Coronavirus State and Local Fiscal Recovery Funds, Contract Number: SLFRFP1966, Contract ...

Finding #2025-002 – Reporting – Significant Deficiency and Other Noncompliance. Applicable federal program: Department of Treasury, Passed through Harris County, Texas, Assistance Listing #: 21.027 – COVID-19 – Coronavirus State and Local Fiscal Recovery Funds, Contract Number: SLFRFP1966, Contract Year: 10/31/24 – 12/31/26. Condition and context: MAM incurred qualifying construction expenditures that were properly recorded as CIP. However, MAM did not record government grant revenue or a related grants receivable for the qualifying expenditures incurred during the fiscal year and did not identify or include the qualifying expenditures incurred during the fiscal year on the SEFA. Recommendation: Develop policies and procedures to identify and reflect all federal programs on the SEFA, reconcile the federal expenditures to the federal program revenue on a routine basis, and formalize the independent review process for the SEFA and grant billings. Planned corrective action: See finding #2025-001. Responsible officer: See finding #2025-001. Estimated completion date: See finding #2025-001.

View Audit 405145

Finding 1219554 (2025-004)

Material Weakness 2025

Homes for Good Housing Agency

OR

Cash Management HUD Housing Programs Reporting § 200.302 § 200.305 § 200.516

Cash Management Moving to Work Demonstration Program AL No. 14.881 Other matter required to be reported in accordance with 2 CFR 200.516(a) Condition: Out of the 66 grant drawdowns during the year, 19 drawdowns were tested and it was noted that 1 of the drawdowns was made in advance of the supportin...

Cash Management Moving to Work Demonstration Program AL No. 14.881 Other matter required to be reported in accordance with 2 CFR 200.516(a) Condition: Out of the 66 grant drawdowns during the year, 19 drawdowns were tested and it was noted that 1 of the drawdowns was made in advance of the supporting invoices being paid to the vendors and subsequently the invoices were not paid within three business days, as required. Auditor’s Recommendations: The Agency should continue to develop and implement internal controls over grant management to coordinate capital fund draws with the timing of invoice payments. Action Taken: Action Due Date Responsible Person This finding occurred prior to the staff receiving the results of the previous audit. There have been no additional invoice payments outside of the 3-day allowable time. Staff developed and implemented an internal tracking document to ensure payments are made within three days of the draw. Complete – May 2025 Accounting Technician, Kary Smith, Lauren Hodgens and Ryan Bates

View Audit 405133

Finding 1219546 (2025-003)

Material Weakness 2025

Mobridge Regional Hospital

SD

Reporting Material Weakness Matching / Level of Effort / Earmarking

Federal Agency Name: Department of Agriculture Program Name: Community Facilities Loans and Grants Federal Financial Assistance Listing Number: 10.766 Finding Summary: The Hospital does not have an internal control system designed to provide for a complete and accurate schedule of expenditures of fe...

Federal Agency Name: Department of Agriculture Program Name: Community Facilities Loans and Grants Federal Financial Assistance Listing Number: 10.766 Finding Summary: The Hospital does not have an internal control system designed to provide for a complete and accurate schedule of expenditures of federal awards being audited. Management requested the auditors, Eide Bailly LLP, to assist with the preparation of the schedule of expenditures of federal awards. Responsible Individuals: Renae Karst, Chief Financial Officer Corrective Action Plan: It is not cost effective to have an internal control system designed to prepare the schedule of expenditures of federal awards. We requested that our auditors, Eide Bailly LLP, to assist with the preparation of the schedule of expenditures of federal awards. We have designated a member of management to review the drafted schedule of expenditures of federal awards, and we have reviewed with and agree with the final Schedule of Expenditures of Federal Awards. Anticipated Completion Date: Ongoing

View Audit 405128

Finding 1219176 (2025-001)

Material Weakness 2025

Every Woman's Place

MI

Reporting Internal Control / Segregation of Duties

EWP Business office Procedure Manual was updated effective 2025 and was submitted to DHHS in March of 2026. Current Procedures is as follows: Business office Procedures. The following procedures will be applied, to the extent that they do no conflict with or contradict the board policies listed abov...

EWP Business office Procedure Manual was updated effective 2025 and was submitted to DHHS in March of 2026. Current Procedures is as follows: Business office Procedures. The following procedures will be applied, to the extent that they do no conflict with or contradict the board policies listed above: 1. Costs will be charged to an award only if the obligation was incurred during the funding period (unless pre-approval by the Federal awarding agency or pass-through grantor agency). 2. All obligations will be liquidated not later than 30 days after the end of the funding period (or specficied by program legislation). 3. Compliance with period of performance requirements will initially be assigned to the individual approving the allowability of the expense/payment. This will be subject to review and approval in the business office as part of the payment processing.

View Audit 405122

Finding 1219173 (2025-002)

Material Weakness 2025

Charter Township of Chesterfield

MI

Allowable Costs / Cost Principles Reporting Significant Deficiency

Noncompliance with Grant Reporting Frequency Requirements Auditor Description of Criteria, Condition, and Effect: Per the grant agreement for funds received from the Michigan Department of Environment, Great Lake, and Energy ("EGLE") the Township is required to submit financial status reports on a m...

Noncompliance with Grant Reporting Frequency Requirements Auditor Description of Criteria, Condition, and Effect: Per the grant agreement for funds received from the Michigan Department of Environment, Great Lake, and Energy ("EGLE") the Township is required to submit financial status reports on a monthly basis, but instead submitted their reports on a quarterly basis. The Township failed to file financial status reports as required by the Township's grant agreement with EGLE. As a result of this condition, the Township did not comply fully with the reporting requirements under this federal award. Auditor Recommendation: We recommend that the Township review its procedures for compiling financial data for external reporting purposes and develop a calendar by which grant managers and Township administration are notified of pending due dates. Financial reports should be supported by general ledger reports (which should be retained internally along with a copy of the report) and subjected to review and approval by an independent employee or administrator prior to submission. Corrective Action: The Township will strive to submit required reports to EGLE on a monthly basis as required. Expectation will be established via the grant calendar for this grant to be established as noted in finding 2025-001. Responsible Person: Karen Trombley, Accounting Coordinator Anticipated Completion Date: December 31, 2026

View Audit 405111

Finding 1219171 (2025-001)

Material Weakness 2025

Charter Township of Chesterfield

MI

Reporting

Failure to File Required Federal Financial Reports (SF-425) Auditor Description of Criteria, Condition, and Effect: Recipients of federal awards are required to report periodically on financial information, as specified by the 2 CFR 200 Compliance Supplement or grant agreement. Reported information ...

Failure to File Required Federal Financial Reports (SF-425) Auditor Description of Criteria, Condition, and Effect: Recipients of federal awards are required to report periodically on financial information, as specified by the 2 CFR 200 Compliance Supplement or grant agreement. Reported information should be supported by the entity’s accounting records and subjected to an independent review and approval prior to submission in order to detect and correct any errors or omissions. The Township failed to file the semi-annual SF-425 reports as required by the Township's grant agreement with the U.S. Environmental Protection Agency. As a result of this condition, the Township did not comply fully with the reporting requirements under this federal award. Auditor Recommendation: We recommend that the Township review its procedures for compiling financial data for external reporting purposes and develop a calendar by which grant managers and Township administration are notified of pending due dates. Financial reports should be supported by general ledger reports (which should be retained internally along with a copy of the report) and subjected to review and approval by an independent employee or administrator prior to submission. Corrective Action: We have notified the Department of Public Services, who has since had the SF-425’s that were not submitted filed with the EPA. Additionally, the Township’s finance department will produce a grant management calendar as recommended with all Township federal and state external reporting deadlines. Responsible Person: Karen Trombley, Accounting Coordinator Anticipated Completion Date: December 31, 2026

View Audit 405111

Finding 1219145 (2025-003)

Material Weakness 2025

Day Kimball Healthcare

CT

Cash Management Reporting § 200.305

Management acknowledges the importance of cash management policies with regards to reimbursable programs. Day Kimball Healthcare is committed to full compliance with federal cash management requirements and takes seriously its obligation to request reimbursement only after program expenditures have ...

Management acknowledges the importance of cash management policies with regards to reimbursable programs. Day Kimball Healthcare is committed to full compliance with federal cash management requirements and takes seriously its obligation to request reimbursement only after program expenditures have been both incurred and paid. During fiscal year 2025, the employee responsible for previous reporting of these expenses retired, and the job function of submission and review of this grant passed on to other individuals. Management recognizes that our existing review process did not include a sufficient control step to verify payment status prior to submission of reimbursement requests, and employees have now been trained on proper procedure, which includes confirmation of payment of expenses before submission is allowed. In addition, the reviewer is now aware of this requirement and confirmation of payment is now a part of this individual’s responsibilities as well. Going forward into fiscal year 2026 Management believes these controls will prevent similar findings from occurring. Sheena Farner, Director of Budget & Financial Reporting, will oversee this corrective action plan to be fully implemented by September 30, 2026.

View Audit 405083

Finding 1219133 (2025-003)

Material Weakness 2025

Kearsarge Elderly Housing, Inc.

NH

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

Finding 2025-003 Plan: The Director of Affordable Housing will ensure that her staff submit allocation sheets each pay period. The Director will review the allocation sheets for accuracy, and the Director will approve the allocation sheets before submitting to Payroll for processing. The Chief Opera...

Finding 2025-003 Plan: The Director of Affordable Housing will ensure that her staff submit allocation sheets each pay period. The Director will review the allocation sheets for accuracy, and the Director will approve the allocation sheets before submitting to Payroll for processing. The Chief Operating Officer will ensure that the Director of Affordable Housing submits an allocation sheet each pay period. The COO will check the allocation sheet for accuracy before approving the allocation sheet and submitting to Payroll for processing. The allocation sheet submitted will include detailed information on the job duties performed during that pay period by the staff member submitting the allocation sheet. Anticipated Completion Date: 12/31/2025 Contact: Jackie Oliveira, Director of Affordable Housing

View Audit 405074

Finding 1219129 (2025-002)

Material Weakness 2025

Kearsarge Elderly Housing, Inc.

NH

Internal Control / Segregation of Duties Eligibility Material Weakness

Finding 2025-002 Plan: The Human Resource Director will work with Paylocity to find out why the mapping on the file they provide was incorrect. The Human Resource Director will have Paylocity (our third party payroll provider) make the necessary corrections on their end, so this will not happen agai...

Finding 2025-002 Plan: The Human Resource Director will work with Paylocity to find out why the mapping on the file they provide was incorrect. The Human Resource Director will have Paylocity (our third party payroll provider) make the necessary corrections on their end, so this will not happen again. Anticipated Completion Date: 12/31/2025 Contact: Jill Lesmerises, CFO

View Audit 405074

Corrective Action Plans

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