Corrective Action Plans

Finding 1230108 (2024-034)

Material Weakness 2024

State of Nevada

NV

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

Finding #2024-034 - Education Stabilization Fund, 84.425 Reporting - Material Weakness in Internal Control over Compliance and Material Noncompliance resulted in the following Eide Bailly, LLP recommendation: We recommend NDE implement internal controls to identify required information to be reporte...

Finding #2024-034 - Education Stabilization Fund, 84.425 Reporting - Material Weakness in Internal Control over Compliance and Material Noncompliance resulted in the following Eide Bailly, LLP recommendation: We recommend NDE implement internal controls to identify required information to be reported, ensure accuracy, and maintain adequate document retention to support compliance. NDE Response Due to rapid turnover, changes in assigned personnel, and inconsistent file architecture, NDE has struggled to ensure that source documentation is labeled and retained appropriately. Corrective Action NDE shall document standards for data and reporting, to include required standards for policies and procedures and business rules, to support the development of new and/or temporary reporting requirements in alignment with all relevant internal controls. NDE shall implement internal control monitoring specific to compliance with the data and reporting standards. Responsible Parties and Anticipated Completion Date Student Investment Division, Office of Division Compliance; May 1, 2027. Please reach out to Jenni Hood at sidcompliance@doe.nv.gov with any questions.

View Audit 411357

Finding 1230072 (2024-028)

Material Weakness 2024

State of Nevada

NV

Reporting Material Weakness

Audit Finding 2024-028: U.S. Department of Treasury COVID-19 Coronavirus State and Local Fiscal Recovery Fund, 21.027 Finding: Inaccurate information was reported to the federal awarding agency. Recommendation: Recommend the Nevada Governor’s Finance Office (GFO) enhance internal controls to ensure ...

Audit Finding 2024-028: U.S. Department of Treasury COVID-19 Coronavirus State and Local Fiscal Recovery Fund, 21.027 Finding: Inaccurate information was reported to the federal awarding agency. Recommendation: Recommend the Nevada Governor’s Finance Office (GFO) enhance internal controls to ensure Project Expenditure Reports are reconciled to the underlying support documentation. Agency Response: Does the agency Agree with the Finding: Yes Corrective Action: To ensure full compliance going forward, we will take the following steps: The Governor’s Finance Office has enhanced its internal controls surrounding the preparation and review of Project and Expenditure Reports submitted to the federal awarding agency. As part of these improvements, GFO implemented a strengthened reconciliation process to verify that all reported financial data aligns with underlying support documentation prior to submission. After discovering this issue, GFO has reconciled the Project Expenditure Reports with all supporting documents except for the Revenue Loss allowance, which is still under review due to discrepancies. However, the obligated Revenue Loss remains substantially under the Revenue Loss cap. Remaining reconciliation work on the Revenue Loss component will be completed using validated source documentation to ensure accuracy and compliance with federal reporting requirements. Date of Completion: Reconciliations completed for all expenditure report components except the Revenue Loss allowance. Completion of the Revenue Loss reconciliation is expected in the upcoming reporting period. Agency Contact: Lesa Galloway, ASO IV Office (775) 684-0239 lgalloway@finance.nv.gov

View Audit 411357

Finding 1230068 (2024-023)

Material Weakness 2024

State of Nevada

NV

School Nutrition Programs Subrecipient Monitoring Reporting

Finding Number: 2024-023 Summary of finding: The Nevada Department of Agriculture (NDA) did not have internal controls to ensure subaward information was submitted in accordance with the FFATA. Subaward obligations were not reported in the FSRS and therefore not included on the FFATA’s website for p...

Finding Number: 2024-023 Summary of finding: The Nevada Department of Agriculture (NDA) did not have internal controls to ensure subaward information was submitted in accordance with the FFATA. Subaward obligations were not reported in the FSRS and therefore not included on the FFATA’s website for public information disclosure. Recommendation: The State agency should implement internal controls to ensure subaward information is submitted in accordance with the FFATA or to seek guidance for applicability towards permanent agreements with annual obligations. CAP Response: We will continue working with the USDA to establish a clear procedure and guidance for reporting FFATA requirements related to meal claims. At this time, the USDA does not consider meal claims to be subawards. We have requested clarification and a procedure regarding FFATA reporting for meal claims but have not yet received a response. Anticipated date of completion: Ongoing.

View Audit 411357

Finding 1230065 (2024-022)

Material Weakness 2024

State of Nevada

NV

School Nutrition Programs Reporting

Finding Number: 2024-022 Summary of finding: Amounts reported on the FNS-10 report were not supported by the underlying accounting information. Recommendation: NDA should enhance internal controls to ensure FNS-10 reports are accurate or supporting documentation for reconciling items is maintained. ...

Finding Number: 2024-022 Summary of finding: Amounts reported on the FNS-10 report were not supported by the underlying accounting information. Recommendation: NDA should enhance internal controls to ensure FNS-10 reports are accurate or supporting documentation for reconciling items is maintained. CAP Response: The agency agrees and accepts this finding and will take the following steps to enhance internal controls to ensure compliance: The program staff responsible for completing the FNS-10 report will document and keep any notes for edits made to the FNS-10 report that are a result of our current system not tallying amounts or pulling amounts correctly for the FNS-10 report. This will begin immediately with the submission of the next monthly report. Anticipated date of completion: July 31, 2026

View Audit 411357

Finding 1230064 (2024-024)

Material Weakness 2024

State of Nevada

NV

School Nutrition Programs Reporting

Finding Number: 2024-024 Summary of finding: NDA did not have adequate internal controls to ensure commodities were identified for the appropriate federal program in the SEFA. Prior to correction, commodities of $9,950,720 were identified under the National School Lunch Program 10.555, rather than t...

Finding Number: 2024-024 Summary of finding: NDA did not have adequate internal controls to ensure commodities were identified for the appropriate federal program in the SEFA. Prior to correction, commodities of $9,950,720 were identified under the National School Lunch Program 10.555, rather than the Emergency Food Assistance Program, 10.569. Recommendation: NDA should enhance internal controls to ensure commodities are identified for the appropriate federal program in the SEFA. CAP Response: The agency agrees and accepts this finding and will take the following steps to enhance internal controls to ensure compliance: The Food Distribution Supervisor will double-check all of the amounts, names and CFDA numbers on the SEFA. Then the ASO II will double-check that the programs names match the CFDA numbers prior to submitting the information for the SEFA. This process will be put in place immediately. Anticipated date of completion: August 31, 2026

View Audit 411357

Finding 1230044 (2024-001)

Material Weakness 2024

Nauset Regional School District

MA

Reporting

2024-001: Compliance with Reporting Requirements to Pass Through Agencies Type of Finding Compliance and Internal Control over Compliance - Material Weakness Criteria or Specific Requirement Grantees must comply with reporting requirements established by the Massachusetts Department of Elementary an...

2024-001: Compliance with Reporting Requirements to Pass Through Agencies Type of Finding Compliance and Internal Control over Compliance - Material Weakness Criteria or Specific Requirement Grantees must comply with reporting requirements established by the Massachusetts Department of Elementary and Secondary Education, the District's Pass-Through Grantor (State). In order for the State to comply with federal reporting requirements, the District is required to submit complete and accurate "Recipient Data Collection Forms" to the State. Condition and Context: The District did not submit data collection forms timely to the state, nor could the reporting documents submitted to the be reconciled timely to the Fiscal Year 2024 Amounts reported on the Schedule of Expenditures of Federal awards. Cause: Management has not established guidelines and procedures to ensure and demonstrate that required reporting is completed, retained, and available for inspection during the audit. Effect or Potential Effect: Untimely or inaccurate reporting limits the ability of the state to complete its federal reporting requirements and limits its ability to effectively oversee the federal program. Questioned Costs None reported Recommendation The District should implement internal control procedures to ensure compliance with all grant requirements including the completion and retention of all required reports. The documentation should be filed in an organized manner and made readily available for inspection during the audit. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding. The District has implemented a system to ensure reports are filed timely and accurately going forward.

View Audit 411297

Finding 1230040 (2024-003)

Material Weakness 2024

Village of Orland Park

IL

Reporting Allowable Costs / Cost Principles Cash Management

Corrective Action Plan 2024-003 Delayed Completion and Submission of Single Audit Condition Found The Village did not complete and submit its Single Audit for the fiscal year ended December 31, 2024, within the required timeframe. Management determined that the Village had expended federal awards in...

Corrective Action Plan 2024-003 Delayed Completion and Submission of Single Audit Condition Found The Village did not complete and submit its Single Audit for the fiscal year ended December 31, 2024, within the required timeframe. Management determined that the Village had expended federal awards in excess of the Single Audit threshold only after the required audit planning and reporting timeline had been delayed. The delay occurred because the Village’s grant tracking process/system did not allow management to separately identify, classify, and monitor federal grant awards and expenditures apart from state grant awards and expenditures. As a result, management did not timely determine whether the Village met the federal expenditure threshold requiring a Single Audit for the fiscal year ended December 31, 2024. Corrective Action Plan 1. Deficient Grant Tracking System / Process: The Village has completed our ERP implementation of Munis of Tyler Technologies. This allows for better review of grant tracking and cleaner allocations. 2. Inadequate Internal Controls Over Federal Awards: The Village has documented new post-award policies under Uniform Guidance (2 CFR 200). Moving forward, both the managing department head and the Finance Director will sign off on the intake, classification, and tracking of new grant agreements to ensure proper oversight from day one. 3. Absence of a Formal Review Process: The Village will institute a mandatory quarterly threshold review and a comprehensive year-end pre-audit checklist. Prior to fiscal year-end, the Finance Department formally aggregates all active grant expenditures to evaluate whether federal outlays meet or exceed the $750,000 Single Audit threshold, ensuring early audit planning. Responsible Person for Corrective Action Plan Chris Frankenfield- Finance Director Implementation Date of Corrective Action Plan 1. August 18, 2025 2. March 31, 2027 3. March 31, 2027

View Audit 411290

Finding 1230036 (2024-005)

Material Weakness 2024

Valley Health Associates

CA

Subrecipient Monitoring Material Weakness Reporting § 200.512

Planned Corrective Action: Valley Health Associates will ensure accounting methods are consistent and include proper documentation. And, immediately ensure reports are submitted in a timely manner for the Medi-caid program.

View Audit 411282

Finding 1230035 (2024-004)

Material Weakness 2024

Valley Health Associates

CA

Reporting Subrecipient Monitoring § 200.501

Planned Corrective Action: We understand the severity of the finding and will maintain a Schedule of Expenditure of Federal Awards to be updated at month-end close as well as documented timesheets for all staff included in the expenditures list. This will be accomplished by providing training for pr...

Planned Corrective Action: We understand the severity of the finding and will maintain a Schedule of Expenditure of Federal Awards to be updated at month-end close as well as documented timesheets for all staff included in the expenditures list. This will be accomplished by providing training for procurement, finance, and administrative staff on: . Recognizing when a transaction exceeds the threshold. . Collecting and organizing supporting documentation. Valley Health Associates shall conduct periodic audits to: . Review SEFA report. . ldentify gaps or missing documentation and correct them promptly. . Document findings and corrective actions.

View Audit 411282

Finding 1230033 (2024-005)

Material Weakness 2024

SC UPLIFT COMMUNITY OUTREACH

SC

HUD Housing Programs Reporting

No recommendation was made by the auditor. No corrective action is consider necessary

View Audit 411275

Finding 1230030 (2024-002)

Material Weakness 2024

SC UPLIFT COMMUNITY OUTREACH

SC

Reporting

Finding 2024-002 - Preparation of Schedule of Expenditures of Federal Awards (SEFA) Name of Federal Agency: U. S. Department of Housing and Urban Development (HUD) Award Year: 2021 and 2024 Criteria or specific requirement: Management is required by various regulatory and funding agencies, as well a...

Finding 2024-002 - Preparation of Schedule of Expenditures of Federal Awards (SEFA) Name of Federal Agency: U. S. Department of Housing and Urban Development (HUD) Award Year: 2021 and 2024 Criteria or specific requirement: Management is required by various regulatory and funding agencies, as well as by due diligence responsibilities to the general-public, to provide a single audit, or if separately, annual audited financial statements, and a program-specific audit (the SEFA). In general, it is management's responsibility to prepare the SEFA, and present it to the auditor. Condition: SC UpLift's management does not internally prepare its own full-disclosure SEFA. Currently the auditor provides significant assistance when preparing the SEFA. Cause of condition: Similar to most small-to-medium sized organizations, SC UpLift lacks the personnel with the accounting expertise and training such as that possessed by a certified public accountant or a chief financial officer of a large organization who customarily and regularly prepares appropriate reporting statements. Potential effect of condition: SC UpLift is dependent upon its external auditor to assist in preparing the SEFA, including footnotes, as part of the audit process. Recommendation: We are obligated by recently adopted auditing standards to bring this condition to the attention of management and the Board. Those charged with governance are obligated to consider the validity of these comments in light of the circumstances surrounding this condition and respond as they consider necessary. Your response may very well entail acceptance and continuance of this condition as the best perceived alternative under the circumstances. Response of Responsible SC UpLift Official: We relied on our auditor to produce the SEFA. Our accounting department is small, and consists of one contracted individual, which makes it difficult. We will continue to evaluate our ability to produce our SEFA, with related footnotes when audits are required.

View Audit 411275

Finding 1230029 (2024-001)

Material Weakness 2024

SC UPLIFT COMMUNITY OUTREACH

SC

Internal Control / Segregation of Duties HUD Housing Programs Reporting

Finding 2024-001 - Internal Controls Over Accounting and Financial Reporting Fiscal Year Finding Initially Occurred: FY 2024 (Initial Finding) Name of Federal Agency: U. S. Department of Housing and Urban Development (HUD) Award Year: 2021, 2023, and 2024 Criteria or specific requirement: Under the ...

Finding 2024-001 - Internal Controls Over Accounting and Financial Reporting Fiscal Year Finding Initially Occurred: FY 2024 (Initial Finding) Name of Federal Agency: U. S. Department of Housing and Urban Development (HUD) Award Year: 2021, 2023, and 2024 Criteria or specific requirement: Under the Uniform Guidance (2 CFR Part 200), non-Federal entities that receive Federal awards must maintain an accounting and financial management system that provides adequate internal control, accountability, and reporting. Generally Accepted Accounting Principles (GAAP) require revenues and expenses to be recognized in the period in which they are earned or incurred. Assets, liabilities, and net assets should be accurately recorded and reported as of the applicable reporting date. Organizations should maintain effective controls to ensure proper period-end cutoff and accurate financial reporting. Condition: During our audit, we identified material accounting errors in accounts receivable, equity investments, property and equipment, accumulated depreciation, construction in progress, accounts payable, and the classification of net assets with donor restrictions, where account balances were not recorded, were recorded improperly, or improperly classified. With respect to revenues and expenses, we identified transactions that were recorded in accounting periods other than those in which the underlying economic events occurred. Specifically, some revenues and expenses that should have been reported in the 2023 accounting year were recorded in the 2024 accounting year, Another condition related to this finding is that accounting personnel do not close the books at year-end each year. This condition required SC UpLift's management to engage the services of a third-party Certified Public Accountant (CPA) to correct the underlying accounting records before year-end financial statements could be prepared. The accounting records required approximately 30 adjusting, reclassifying, or correcting journal entries, to get the accounting records ready for financial reporting. Cause of condition: The primary cause of this condition appears to be a lack of skill, knowledge, experience, and training of accounting personnel with respect to GAAP, and governmental bookkeeping, accounting, and financial reporting requirements. A secondary cause of this condition may be a lack of supervisory oversight and review of accounting transactions by a knowledgeable individual. Potential effect of condition: The potential effect of this condition is the possible material misstatement of interim and/or year-end financial reporting. Management may make decisions using inaccurate financial information, which could negatively affect SC Uplift's ability to secure additional funding for its programs. Section II - Financial Statement Findings (continued) Finding 2024-001 - Internal Controls Over Accounting and Financial Reporting (continued) Fiscal Year Finding Initially Occurred: FY 2024 (Initial Finding) Recommendation: We recommend Management strengthen daily accounting, and period-end closing and review procedures to ensure all transactions are recorded in the appropriate accounting period. Recommended actions include: 1. Implementing formal cutoff procedures for revenue, expense, asset, and liability transactions; 2. Strengthening supervisory review and approval of period-end journal entries and reconciliations; 3. Performing timely reconciliations of significant balance sheet accounts; 4. Providing training to accounting personnel regarding period recognition requirements and accounting cutoff principles; and 5. Establishing documented review controls to verify the completeness and accuracy of period-end financial reporting. Response of Responsible SC UpLift Official: Management of SC UpLift Community Outreach, Inc. acknowledges and understands the audit finding regarding financial reporting and year-end accounting procedures. We appreciate the auditor's recommendations and are committed to strengthening our accounting and financial reporting processes to ensure continued compliance with Generally Accepted Accounting Principles (GAAP), Uniform Guidance (2 CFR Part 200), and nonprofit financial reporting standards. As a small nonprofit organization with limited administrative resources, SC UpLift has consistently sought to maintain sound financial management practices by engaging qualified Certified Public Accountants (CPAs) to assist with our accounting and financial reporting. However, due to the financial constraints common among small nonprofit organizations, we have not always been able to retain those services on a continuous basis because of the associated costs. This was SC UpLift's first Single Audit, and we recognize that the increased reporting requirements associated with federal funding require additional expertise, stronger internal controls, and more formalized year-end closing procedures. We have already engaged a third-party CPA to assist with the preparation of the 2024 audited financial statements and will continue working closely with both our bookkeeper and CPA throughout the upcoming fiscal year to improve our financial reporting processes. Specifically, management will: • Develop and implement formal month-end and year-end closing procedures. • Perform timely reconciliations of all significant balance sheet accounts. • Strengthen supervisory review of journal entries, reconciliations, and financial reports. • Ensure revenues, expenses, assets, and liabilities are recorded in the proper accounting period. • Continue utilizing the expertise of our third-party CPA to review financial records, provide guidance on GAAP compliance, and assist with staff training and implementation of best practices. Management believes these corrective actions will significantly strengthen our internal controls over financial reporting and reduce the likelihood of similar findings in future audits. We are committed to continuous improvement and maintaining financial records that accurately reflect the organization's financial position while meeting all applicable federal and nonprofit reporting requirements. Target Completion Date: December 31, 2026

View Audit 411275

Finding 1230028 (2024-006)

Material Weakness 2024

SC UPLIFT COMMUNITY OUTREACH

SC

Subrecipient Monitoring Reporting

Criteria: Section 3.5 of the Grant Agreement, Federal Labor Standards Compliance, requires the subrecipient to ensure compliance with all applicable labor standards for federally funded construction activities. Specifically, contracts exceeding $2,000 for construction, alteration, repair, painting, ...

Criteria: Section 3.5 of the Grant Agreement, Federal Labor Standards Compliance, requires the subrecipient to ensure compliance with all applicable labor standards for federally funded construction activities. Specifically, contracts exceeding $2,000 for construction, alteration, repair, painting, or decorating of a public building or public work financed in whole or in part with federal funds must include the labor standards provisions required by 29 CFR Part 5.5, including prevailing wage requirements. Condition: The subrecipient did not ensure that applicable construction contracts contained the required federal labor standards provisions, including prevailing wage requirements and the contract clauses prescribed by 29 CFR Part 5.5. No prevailing wage determinations were obtained or payroll records maintained, Cause: Management did not establish adequate procedures to review federally funded construction contracts for compliance with federal labor standards requirements before execution. Effect: Failure to include the required labor standards provisions may result in noncompliance with federal grant requirements, expose workers to improper wage practices, and increase the risk of questioned costs, repayment of grant funds, or other federal sanctions. Recommendation: We recommend Management implement procedures to identify all federally funded construction contracts subject to prevailing wage requirements and ensure that required labor standards provisions, including those contained in 29 CFR Part 5.5, are incorporated into all applicable contracts before work begins. Management Response: SC UpLift Community Outreach, Inc. acknowledges the audit finding and understands the importance of ensuring compliance with all applicable federal labor standards and grant requirements. At the inception of the Richland County Home Repair Project for Seniors, SC UpLift participated in an orientation conducted by the consulting firm retained by Richland County to administer and oversee the ARPA-funded program. During that orientation, SC UpLift was provided guidance regarding program administration, reporting requirements, and the monthly Subrecipient Reports that were required throughout the grant period. Based on the information and technical assistance provided during program implementation, management believed that prevailing wage requirements were applicable primarily to larger federally funded construction projects and was not aware that prevailing wage monitoring requirements applied to this program. At no time during the grant period was prevailing wage documentation requested or identified as a compliance concern during the monthly reporting process. While this context explains management's understanding, SC UpLift recognizes that ultimate responsibility for complying with all grant requirements rests with the organization. We accept the finding and are committed to strengthening our compliance procedures. To address this finding, SC UpLift will implement the following corrective actions: • Develop written policies and procedures to identify federal labor standards and prevailing wage requirements before the execution of any federally funded construction or rehabilitation contracts. • Review all federal and pass-through award agreements at the beginning of each grant to identify all applicable compliance requirements. • Incorporate a grant compliance checklist that includes prevailing wage determinations, when applicable, before projects are initiated. • Consult with our third-party CPA and grant management professionals, as necessary, to ensure compliance with federal labor standards and other grant requirements. • Provide additional training to management and program staff regarding federal grant compliance requirements, including prevailing wage regulations. Management is committed to strengthening its internal controls and compliance monitoring processes to ensure all applicable federal requirements are identified and implemented for future federally funded projects.

View Audit 411275

Finding 1230009 (2024-002)

Material Weakness 2024

Baycare Health System, Inc. and Affiliates

FL

Reporting § 200.303 § 200.502 § 200.510

Management has strengthened controls over SEFA preparation by implementing procedures to identify federal awards with unique reporting requirements, including FEMA grants. A formal review process and year-end reconciliation of federal expenditures to the SEFA will be performed to ensure expenditures...

Management has strengthened controls over SEFA preparation by implementing procedures to identify federal awards with unique reporting requirements, including FEMA grants. A formal review process and year-end reconciliation of federal expenditures to the SEFA will be performed to ensure expenditures are reported completely and accurately in accordance with Uniform Guidance requirements.

View Audit 411239

Finding 1230008 (2024-001)

Material Weakness 2024

Baycare Health System, Inc. and Affiliates

FL

Reporting Matching / Level of Effort / Earmarking § 200.303

The grant accounting and SEFA preparation process will be refined, improved and documented. Internal resources will be reallocated to ensure sufficient coverage of these processes, and the primary accountability and oversight will shift to System Accounting. Management will ensure that in preparatio...

The grant accounting and SEFA preparation process will be refined, improved and documented. Internal resources will be reallocated to ensure sufficient coverage of these processes, and the primary accountability and oversight will shift to System Accounting. Management will ensure that in preparation of the SEFA, (1) a team member will assemble the initial reconciliation, (2) management will review the initial reconciliation and review the consolidation from all BayCare entities to the combined SEFA, (3) A final review will be conducted by the Director of Accounting. Sign-off from each preparer/reviewer shall be required. Meetings will be conducted as needed with departments outside of Hospital Finance to ensure completeness and accuracy of data.

View Audit 411239

Finding 1229774 (2024-001)

Material Weakness 2024

Iglesia De Dios Pentecostal, M.i.

PR

Reporting Internal Control / Segregation of Duties § 200.512

Corrective Action: Iglesia de Dios Pentecostal, M.I. has implemented procedures to strengthen its audit planning and federal compliance process to ensure that future program-specific audit reporting packages are submitted within the deadlines established by 2 CFR §200.512(a).S pecifica lly, manageme...

Corrective Action: Iglesia de Dios Pentecostal, M.I. has implemented procedures to strengthen its audit planning and federal compliance process to ensure that future program-specific audit reporting packages are submitted within the deadlines established by 2 CFR §200.512(a).S pecifica lly, management will: 1. Establish an annual compliance calendar identifying all federal reporting deadlines, including the due date for submission of the program-specific audit reporting package to the Federal Audit Clearinghouse (FAC). 2. Begin the auditor procurement or engagement renewal process sufficiently in advance of the fiscal year-end to allow adequate time for audit planning, fieldwork, report issuance, and timely submission of the reporting package. 3. Assign responsibility to a designated management official to monitor compliance with the audit timeline, communicate periodically with the independent auditor regarding the status of the engagement, and ensure that all required documentation is submitted on time. 4. Review the compliance calendar periodically throughout the year and document management's monitoring activities to ensure all critical milestones are met. Management believes these measures will significantly reduce the risk of future delays and will promote continued compliance with federal audit reporting requirements

View Audit 411063

Finding 1229768 (2024-001)

Material Weakness 2024

Bear Paw Cooperative

MT

Reporting § 200.512

Bear Paw Cooperative federal ID 81-0445802 <PO <Box 1449 - 421 Ohio Street - Chinook, Montana 59523 - 406/357-2269 - 'Fax: 406/357-2517 August 19, 2026 RE: Response to FY2024 Audit Finding View of Responsible Officials: The Cooperative acknowledges the audit finding related to the late completion an...

Bear Paw Cooperative federal ID 81-0445802 <PO <Box 1449 - 421 Ohio Street - Chinook, Montana 59523 - 406/357-2269 - 'Fax: 406/357-2517 August 19, 2026 RE: Response to FY2024 Audit Finding View of Responsible Officials: The Cooperative acknowledges the audit finding related to the late completion and submission of its audit and recognizes the importance of maintaining compliance with all applicable audit requirements and deadlines. The delays that resulted in the finding were initially attributable, in significant part, to the lack of available staffing and resulting delays within the Cooperative's previous auditing firm that delayed the completion of the FY2022 audit and subsequent audits thereafter. Despite efforts to obtain the required audit work in a timely manner, the circumstances resulted in the audit falling outside of the required timefran1e. The Cooperative has taken corrective action to address the underlying issue and has worked diligently with a new auditing firm to bring the Cooperative's audits current and back into compliance. Through this effort, the Cooperative successfully completed its FY2023 audit in April 2026 and is now completing the FY2024 audit. The Cooperative has maintained ongoing communication and coordination with the new auditing firm throughout this process to ensure that outstanding audit requirements are addressed and that future audits are completed within the required statutory and regulatory timeframes. The Cooperative appreciates the opportunity to address this finding and remains committed to full compliance and continuous improvement in its financial oversight and reporting practices. Sara G. Tempel, Director Bear Paw Cooperative PO BOX 144 August 19th, 2026 RE: 2024-002 Cash Overdraft View of Responsible Officials: This letter is in response to the finding regarding overdrawn cash accounts. We are implementing corrective actions to ensure compliance moving forward. Bear Paw Cooperative agrees with the audit finding and recommendation. The negative cash balance in the Miscellaneous Programs Fund (315) was primarily the result of timing differences between expenditures incurred during fiscal year 2024 and the receipt of IDEA grant reimbursements. The Cooperative had incurred allowable grant expenditures but had not yet received all related grant disbursements as of June 30, 2024. The negative cash balance in the lnterlocal Agreement Fund (382) resulted from expenditures exceeding the fund's available revenues and other financing sources during the fiscal year. Bear Paw Cooperative recognizes the importance of maintaining adequate cash balances within each fund and complying with GASB requirements and applicable Montana statutes. Going forward, the Cooperative will strengthen its monitoring of fund cash balances, particularly as year-end approaches. Bear Paw Cooperative will also work to ensure that expenditures are not incurred in excess of available resources for funds subject to applicable expenditure limitations. These procedures are intended to improve cash-flow monitoring, ensure appropriate financial reporting, and prevent negative fund cash balances in future fiscal years Sincerely, Amanda Miller District Clerk Bear Paw Cooperative/Chinook Public Schools PO BOX 14-4 X: 406-357-2517 August 19th 2026 RE: Miscellaneous Fund Tracking and Accounting View of Responsible Officials: Bear Paw Cooperative agrees with the finding and recommendation. Bear Paw Cooperative has implemented procedures to improve the monitoring of cash and program balances. The Cooperative will perform monthly reconciliations of the grant/project balances to the County Treasurer's cash balance and will review cash balances by fund and project reporter code (PRC) throughout the year. These reconciliations will assist management in identifying potential cash shortfalls and discrepancies in program balances before year-end. We believe these procedures will provide better oversight of individual program cash balances, improve the accuracy of financial reporting, and reduce the likelihood of negative cash balances at year-end. Sincerely, Amanda Miller District Clerk Bear Paw Cooperative/Chinook Public Schools BEAR PAW COOPERATIVE PO BOX 1449 . CHINOOK, MT 59523 . 406-357-2269 . FAX: 406-357-2517 August 31st 2026 RE: Auditee Response – 2024-004 Proper Uses of Revenue and Funds Bear Paw Cooperative agrees with the audit finding and recognizes the importance of ensuring that revenues and expenditures are recorded in the appropriate fund and that each fund is used only for its designated purpose. The $13,502 identified in the audit resulted from revenue being coded to the Retirement Fund rather than the Interlocal Agreement Fund. This resulted in the Retirement Fund cash and revenue being overstated and the Interlocal Agreement Fund cash and revenue being understated. Management acknowledges that the error was a result of incorrect fund coding when the revenue was recorded. To prevent similar errors in the future, the Cooperative will implement the following procedures: • Revenue receipts will be reviewed at the time of entry to verify that the revenue is being recorded in the appropriate fund and account. • Supporting documentation will be reviewed to determine the designated purpose of each revenue source before the transaction is posted. • Fund coding will be reviewed periodically to identify and correct any transactions that may have been recorded in an incorrect fund. Bear Paw Cooperative will continue to monitor fund activity and ensure that revenues and resources are maintained separately and used for their intended purposes in accordance with applicable GASB requirements and the School Accounting Manual. Sincerely, Amanda Miller District Clerk Bear Paw Cooperative/Chinook Public Schools

View Audit 411004

Finding 1229743 (2024-003)

Material Weakness 2024

Anacostia Business Improvement District Corporation

DC

Reporting § 200.501

Finding Reference: 2024-003 Views of Responsible Officials and Planned Corrective Actions Management acknowledges that the Single Audit reporting package (including the Data Collection Form) was not submitted to the Federal Audit Clearinghouse within the timeframe required by 2 CFR 200.501, due to d...

Finding Reference: 2024-003 Views of Responsible Officials and Planned Corrective Actions Management acknowledges that the Single Audit reporting package (including the Data Collection Form) was not submitted to the Federal Audit Clearinghouse within the timeframe required by 2 CFR 200.501, due to delays in completing account reconciliations and finalizing the Schedule of Expenditures of Federal Awards. Management concurs with the finding and is implementing the following corrective actions: 1. Adopting a formal year-end closing and audit timeline that works backward from the required Single Audit submission deadline (the earlier of 30 days after receipt of the auditor's report or nine months after the end of the audit period), with interim deadlines for reconciliations, SEFA preparation, and audit fieldwork. 2. Engaging with the independent auditor earlier in the process to confirm fieldwork and reporting timelines and to identify potential delays before they affect the filing deadline. 3. Assigning management responsibility for monitoring progress against the closing timeline and escalating any anticipated delays to the Board in advance of the due date. Management is committed to submitting future Single Audit reporting packages within the required timeframe. Name of the contact person responsible for corrective action: Kristina Noell, Executive Director, (202) 897-5060 Planned completion date for corrective action plan: August 5, 2026. Auditor’s Note: The stated completion date for the corrective action plan is based on the ABID's representation. The implementation of these corrective actions has not been audited by the auditors and will be subject to review during the next audit period.

View Audit 410964

Finding 1229742 (2024-002)

Material Weakness 2024

Anacostia Business Improvement District Corporation

DC

Reporting Procurement, Suspension & Debarment Significant Deficiency

Finding Reference: 2024-002 Views of Responsible Officials and Planned Corrective Actions Management acknowledges that the initial Schedule of Expenditures of Federal Awards (SEFA) provided at the start of the audit did not reflect final reconciled grant expenditures and required revision during the...

Finding Reference: 2024-002 Views of Responsible Officials and Planned Corrective Actions Management acknowledges that the initial Schedule of Expenditures of Federal Awards (SEFA) provided at the start of the audit did not reflect final reconciled grant expenditures and required revision during the audit. Management concurs with the finding and is implementing the following corrective actions: 1. Establishing a formal grants reconciliation process performed on a recurring basis throughout the year (rather than only at year-end), reconciling federal expenditures recorded in the general ledger to underlying grant agreements, drawdown requests, and supporting documentation. 2. Designating a staff member to maintain a running schedule of federal award expenditures by federal assistance listing number and grant award, updated each reporting period. 3. Requiring that the SEFA be prepared directly from this reconciled schedule and reviewed by management for accuracy and completeness before it is provided to the auditors. Name of the contact person responsible for corrective action: Kristina Noell, Executive Director, (202) 897-5060 Planned completion date for corrective action plan: August 5, 2026.

View Audit 410964

Finding 1229712 (2024-028)

Material Weakness 2024

Republic of the Marshall Islands

MH

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties § 200.303

Condition 1: ELC Program Leads complete and submit Work Plan Progress Reports through the ELC CAMP as required by the grant. To monitor compliance, ELC will notify the Ministry of Finance of submitted reports and provide MOF with view-only access to relevant files and supporting documentation as nee...

Condition 1: ELC Program Leads complete and submit Work Plan Progress Reports through the ELC CAMP as required by the grant. To monitor compliance, ELC will notify the Ministry of Finance of submitted reports and provide MOF with view-only access to relevant files and supporting documentation as needed. Condition 2: The ELC Program Leads completes the required financial reports in ELC CAMP using information provided by the MOF Fiscal Officer and submits the reports through ELC CAMP and GrantSolutions. ELC will notify MOF of each submission to support compliance monitoring. To strengthen the process, MOF and MOHHS will establish a formal reporting process. MOHHS will maintain a tracking tool with required reports, reporting periods, due dates, and submission status, and share it with MOF. MOF will have access to ELC CAMP and the MOHHS GrantSolutions account to retrieve reports as needed.

View Audit 410889

Finding 1229693 (2024-015)

Material Weakness 2024

Republic of the Marshall Islands

MH

Reporting Subrecipient Monitoring Cash Management § 200.303

Condition 1. Item 1. A financial reporting tool was recently established to support the timely preparation and submission of reports. Additionally, the Ministry recruited a Senior Financial Analyst in February to oversee the monitoring, preparation, and timely submission of financial reports. Condit...

Condition 1. Item 1. A financial reporting tool was recently established to support the timely preparation and submission of reports. Additionally, the Ministry recruited a Senior Financial Analyst in February to oversee the monitoring, preparation, and timely submission of financial reports. Condition 2-1. Items 1-2 Effective FY2025, the Accounting Division is now required to prepare drawdown request forms using the detailed expenditure report (journal listing). Each request is submitted to the Finance Secretary only after approval by Accounting Management. Condition 2-2. Items 1-21 A financial reporting tool was recently established to support the timely preparation and submission of reports. Additionally, the Ministry recruited a Senior Financial Analyst in February to oversee the monitoring, preparation, and timely submission of financial reports. Condition 2-3. Items 1-2 Effective FY2025, the Accounting Division is now required to prepare drawdown request forms using the detailed expenditure report (journal listing). Each request is submitted to the Finance Secretary only after approval by Accounting Management. However, the Ministry disagrees with the finding on the SF-425 not containing the SPG code since the latter is not a required US field. SPG code is internal to the MOF. Grant number D22AP00180 is also established in the FMIS as part of the setup of SPG 10450101.

View Audit 410889

Finding 1229554 (2024-004)

Material Weakness 2024

Robonation Inc.

VA

Reporting Subrecipient Monitoring § 200.512

Views of Responsible Officials: Upon assuming financial leadership in 2026, the new VP of Finance inherited the 2023 audit in a state of significant delay. The commencement of the 2023 audit was delayed due to the backlog of incomplete prior year audits that required resolution before the current ye...

Views of Responsible Officials: Upon assuming financial leadership in 2026, the new VP of Finance inherited the 2023 audit in a state of significant delay. The commencement of the 2023 audit was delayed due to the backlog of incomplete prior year audits that required resolution before the current year engagement could begin, RoboNation had also transitioned to a new audit firm for the 2023 audit, the compound effect contributed to extended timelines and completion delays. Management has implemented the following corrective actions: RoboNation has restored its relationship with its previous audit firm, which has enabled more efficient audit execution and improved communication. The 2023 audit was completed in early 2026, and the 2024 audit was completed on an accelerated timeline. Timelines have been discussed and agreed with the auditors and management for the 2025 audit which positions RoboNation to return to compliance with Federal reporting deadlines. The audit is targeted for completion by September 30, 2026, placing the Data Collection Form submission well within the required deadline. Additionally, management is implementing standardized monthly reconciliation procedures, formalized account close processes, and enhanced financial reporting capabilities that will enable future audits to be executed more efficiently. RoboNation is targeting completion of the 2026 audit in Spring 2027, which will establish a sustainable, predictable audit cadence aligned with Federal compliance requirements.

View Audit 410855

Finding 1229418 (2024-003)

Material Weakness 2024

MICHIGAN FOUNDERS FUND

MI

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Reporting

Remediation Steps Completed: In advance of this finding, MFF began remediation for this issue starting in 2024, through key hires, and extended in 2025 with the development of a full suite of financial and procurement policies. The steps taken are as follows: • A new Executive Director was hired on ...

Remediation Steps Completed: In advance of this finding, MFF began remediation for this issue starting in 2024, through key hires, and extended in 2025 with the development of a full suite of financial and procurement policies. The steps taken are as follows: • A new Executive Director was hired on May 1, 2024 to run the organization. • A full-time Impact Manager was hired on December 9, 2024 to oversee grant management, reporting, and compliance. • A new contract finance and accounting firm and contract Financial Officer was selected and engaged in February 2025 for regular and ongoing financial management, accounting, and oversight. • A full-time Operations Director was hired on August 21, 2025 to oversee organizational systems development and management. • A full suite of financial and procurement policies was drafted in the Fall of 2025 with input and guidance from the Financial Officer, Impact Manager, and Executive Director and informed by procurement standards as described in 2 CFR Part 200, Subpart D. • The Financial and Procurement Policies were formally adopted by the Michigan Founders Fund Board of Directors on June 15, 2026. • The Financial and Procurement Policies were implemented organization-wide on July 15, 2026. Implementation, Monitoring, and Sustainability of the Corrective Action: To ensure this corrective action is implemented and remains effective beyond initial adoption, MFF built the following monitoring controls: The Financial Officer and Impact Manager will follow a documented monthly close checklist that applies the newly adopted Financial and Procurement Policies consistently across all federal awards, ensuring transactions are coded, reviewed, and approved using the same process each month. • For every cost charged to a federal award, MFF will retain evidence of review and approval — including approver name, date, and basis for allowability. This evidence will be centrally filed by grant/award number to support ready retrieval during monitoring or audit. • The Executive Director, Financial Officer, and Impact Manager will conduct a quarterly review of internal controls over compliance with all staff and contractors who have a role in federal award administration. • The Financial and Procurement Policies are scheduled for internal review at least annually, with the next review scheduled for July 1, 2027, or sooner if required. o All staff and board members with purchasing authority will receive training on the new Financial and Procurement Policies at the time of adoption; training is repeated annually and incorporated into new-hire onboarding. o The Executive Director has been designated as the official with overall responsibility for procurement-policy compliance; the Operations Director is responsible for day-to-day monitoring and enforcement of the policy, including maintenance of complete procurement files. • MFF will maintain a written internal controls procedures manual, distinct from the Boardadopted policies, that documents the step-by-step mechanics of compliance processes (e.g., approval routing, filing conventions, reporting deadlines). • These monitoring activities will be reviewed by the Executive Director and Financial Officer on a quarterly basis, with any unresolved control deficiencies escalated to the Board within 60 days of identification. Anticipated Completion Date: September 2026 Contact Person: Rishi Moudgil, Executive Director Contact Phone Number: (313) 338-8292

View Audit 410809

Finding 1229417 (2024-002)

Material Weakness 2024

MICHIGAN FOUNDERS FUND

MI

Reporting Subrecipient Monitoring Allowable Costs / Cost Principles

Remediation Steps Completed: MFF will implement the following corrective actions between June 2026 and September 2026 to remediate the finding and address the cause of the finding. • A new contract financial firm and contracted Financial Officer was selected and engaged in February 2025 for regular ...

Remediation Steps Completed: MFF will implement the following corrective actions between June 2026 and September 2026 to remediate the finding and address the cause of the finding. • A new contract financial firm and contracted Financial Officer was selected and engaged in February 2025 for regular and ongoing financial management and oversight. • Michigan Founders Fund has implemented balance sheet reconciliations to be prepared and completed by identified staff/consultants monthly to ensure expenditures are correctly captured in a timely fashion. • Michigan Founders Fund has documented accounting policies and procedures to reflect month-end processes and provide training to staff on current and future policies in coordination with contracted support. Implementation, Monitoring, and Sustainability of the Corrective Action: Michigan Founders Fund has implemented the above corrective actions to remediate the finding and address the cause of the finding. To ensure these controls remain effective beyond initial adoption and specifically prevent recurrence of costs charged outside the approved period of performance, MFF has built the following monitoring controls into its normal operating cycle: • As part of the monthly balance sheet reconciliation, designated staff/contractors will verify that all expenditures charged to the award were both incurred and obligated within the award's approved period of performance before the entry is posted. Any transaction falling outside the eligible period will be flagged, held from posting to the federal award, and routed for review. • The Executive Director will continue to review and approve all monthly journal entries prior to posting to the general ledger, with specific attention to period-of-performance alignment for federally funded transactions. Approval will be evidenced in writing and retained in accordance with the record retention requirements. • In addition to monthly reconciliations, the Financial Officer will perform a quarterly reconciliation of cumulative expenditures against the award's approved budget period and reporting deadlines, confirming that reported costs align with the eligible period of performance. • MFF's documented accounting policies and procedures will include specific cutoff procedures for the close of the period of performance, ensuring costs are not recorded in the wrong period and that any year-end or award-end accruals are properly evaluated. • All staff and contractors involved in processing or approving federally funded transactions will receive training on period-of-performance requirements as part of onboarding and as part of the annual policy review, ensuring the control does not depend on any single individual's institutional knowledge. • The Executive Director, with support from the Financial Officer, is responsible for overall monitoring and execution of these corrective actions. Any identified instance of an out-of period expenditure will be documented, corrected, and reported to the Board (or Finance/Audit Committee) at its next regularly scheduled meeting. Anticipated Completion Date: September 2026 Contact Person: Rishi Moudgil, Executive Director Contact Phone Number: (313) 338-8292

View Audit 410809

Finding 1229234 (2024-004)

Material Weakness 2024

City of Cherokee

IA

Reporting Internal Control / Segregation of Duties

A policy and procedure will be established to ensure the annual Project and Expenditure Report is reviewed and reconciled prior to submission.

View Audit 410733

Corrective Action Plans

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