Corrective Action Plans

Finding 1238025 (2025-005)

Material Weakness 2025

PA

Subrecipient Monitoring Procurement, Suspension & Debarment Reporting

Corrective action steps taken and/or planned: The delay in reporting the initial project (50-7.4A) is the result of the Federal government transitioning the FSRS system to SAM.GOV. The staff member responsible for entering the data experienced a delay in getting his permission and access to enter da...

Corrective action steps taken and/or planned: The delay in reporting the initial project (50-7.4A) is the result of the Federal government transitioning the FSRS system to SAM.GOV. The staff member responsible for entering the data experienced a delay in getting his permission and access to enter data into the system. Once administrative permissions were granted the project was entered. The second project contained an erroneous subaward date. Once the error was discovered the error was corrected. There are two staff with sufficient access to report in SAM.gov, therefore we anticipate no further delays going forward. Timetable of dates for performance of planned corrective action steps including completion date: This has been completed E. Description of monitoring to be performed to ensure corrective action steps are taken: Staff will provide the SAM.GOV tracking spreadsheet to the Operations Manager, Kaseem Bey monthly.

View Audit 412843

Finding 1238021 (2025-012)

Material Weakness 2025

County of Allegheny, Pennsylvania

PA

Reporting Procurement, Suspension & Debarment Subrecipient Monitoring

DHS will reiterate to providers the importance of timely submission of their expenses. If issues arise or system issues occur, as was the case here, DHS will be proactive in requesting an extension from SAMHSA. DHS will follow the Federal Funding Accountability and Transparency Act requirements and ...

DHS will reiterate to providers the importance of timely submission of their expenses. If issues arise or system issues occur, as was the case here, DHS will be proactive in requesting an extension from SAMHSA. DHS will follow the Federal Funding Accountability and Transparency Act requirements and will report ﬁrst-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). DHS will identify all ﬁrst-tier direct recipients who meet the eligibility criteria and the required data elements will be entered into FSRS. Timetable of dates for erforman‘ f corrective a n he ' In ‘ completion date: All ﬁrst-tier direct recipients who meet the eligibility criteria will be identiﬁed, and the required data elements for those ﬁrst-tier direct recipients will be entered into FSRS by 12/31/26. Annually, a review of ﬁnancial transactions and payments to ﬁrst-tier direct recipients associated with Federal awards will be performed to determine the direct recipients that received $3 0,000 or more. The list of direct recipients will be reconciled to the submissions that have been made into F SRS during the year to ensure completeness of reporting.

View Audit 412843

Finding 1238014 (2025-001)

Material Weakness 2025

Mercy Haven Inc.

NY

Cash Management HUD Housing Programs Reporting

Management is aware of the finding and will develop the following action plan to correct. The CFO, John Murray, will be responsible to correct the recognized deficiency. The plan will be for management to contact and work with HUD Technical Assistance to try to get all rejected filings previously su...

Management is aware of the finding and will develop the following action plan to correct. The CFO, John Murray, will be responsible to correct the recognized deficiency. The plan will be for management to contact and work with HUD Technical Assistance to try to get all rejected filings previously submitted to accepted status. If problems cannot be resolved, management’s plan is to hire a new third party consultant to work with HUD Technical Assistance to submissions up to date.

View Audit 412836

Finding 1238007 (2025-001)

Material Weakness 2025

City of Plymouth

MN

Reporting Internal Control / Segregation of Duties § 200.502 § 200.510

MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS – ALL FEDERAL PROGRAMS 2025-001 Reporting Compliance Requirement – Schedule of Expenditures of Federal Awards (SEFA) Finding Summary 2 CFR § 200.510 requires that the City of Plymouth, Minnesota (the C...

MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS – ALL FEDERAL PROGRAMS 2025-001 Reporting Compliance Requirement – Schedule of Expenditures of Federal Awards (SEFA) Finding Summary 2 CFR § 200.510 requires that the City of Plymouth, Minnesota (the City) prepare appropriate annual financial statements, including the Schedule of Expenditures of Federal Awards (SEFA), which must include the total federal awards expended as determined in accordance with 2 CFR § 200.502. The City did not have proper controls in place to ensure completeness of the SEFA and compliance with this requirement. During our audit, we noted the City did not have sufficient controls in place to ensure the accurate preparation of the SEFA in compliance with this requirement. The City’s SEFA for fiscal 2025 was understated by $1,587,830 due to the exclusion of federal expenditures incurred during the period, requiring a restatement of the previously issued SEFA and additional major program testing. Corrective Action Plan Actions Planned – The SEFA understatement resulted from a lack of coordination between the department that obtained and administered the federal grant and with finance department staff responsible for preparing the SEFA. To strengthen the year-end reporting process, the City has implemented updated procedures requiring a grant-level reconciliation of expenditures and revenues at year-end to ensure they are recorded in the proper fiscal period before preparing the SEFA. Federal grant coordinators and finance department staff will jointly review federal expenditures for accuracy and timing. This strengthened process will help ensure complete and accurate federal expenditure reporting in the SEFA. Official Responsible – The City’s Finance Director, Andrea Rich. Planned Completion Date – December 31, 2026. Disagreement With or Explanation of Finding – The City agrees with the finding and has implemented additional procedures to strengthen controls over reporting. Plan to Monitor – The City’s Finance Director, Andrea Rich, will verify that year-end grant reconciliations are completed and reviewed prior to SEFA preparation.

View Audit 412827

Finding 1237991 (2025-002)

Material Weakness 2025

Rayne Elderly Housing Corporation Operating As Leisure Lane Apartments

FL

HUD Housing Programs Reporting

FINDING NO. 2025-002: Section 202 Supportive Housing for the Elderly, ALN 14.157 Recommendation: The Project should implement procedures to comply with all applicable HUD regulations and ensure the annual utility allowance analysis is performed with supporting documentation retained. Action Taken: S...

FINDING NO. 2025-002: Section 202 Supportive Housing for the Elderly, ALN 14.157 Recommendation: The Project should implement procedures to comply with all applicable HUD regulations and ensure the annual utility allowance analysis is performed with supporting documentation retained. Action Taken: Staff training has been provided regarding UA support and annual analysis and included in monthly reporting procedures. If the Oversight Agency for Audit has questions regarding these plans, please call Irene Phillips at 954-835-9200. Sincerely yours, Irene Phillips Irene Phillips, CFO

View Audit 412807

Finding 1237990 (2025-001)

Material Weakness 2025

Rayne Elderly Housing Corporation Operating As Leisure Lane Apartments

FL

Procurement, Suspension & Debarment HUD Housing Programs Reporting

Oversight Agency for Audit, Rayne Elderly Housing Corporation respectfully submits the following corrective action plan for the year ended December 31, 2025. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 201 Coral Springs, Florida 33...

Oversight Agency for Audit, Rayne Elderly Housing Corporation respectfully submits the following corrective action plan for the year ended December 31, 2025. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 201 Coral Springs, Florida 33067 Audit period: January 1, 2025 through December 31, 2025 The finding from the December 31, 2025 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. SECTION III - FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT FINDING No. 2025-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Recommendation: Management should implement procedures to ensure the replacement reserve is properly funded on a monthly basis and fund the account for the total deficient amount or obtain a HUD approved retroactive suspension for the period. Action Taken: The verification of the correct funding amounts is now confirmed against approved 9250 on a monthly basis, and is a step that is being added on the month-end close checklist. RR will be funded correctly by 12.31.26. This property requested a suspension due to the overfunding of the RR account.

View Audit 412807

Finding 1237975 (2025-003)

Material Weakness 2025

BRADFORD CITY WATER AUTHORITY

PA

Internal Control / Segregation of Duties Reporting

Adjusting Journal Entries and Required Disclosures to the Financial Statements Auditor’s Recommendations: Although auditors may continue to provide such assistance both now and in the future, under the pronouncement, the Water Authority should continue to review and accept both proposed adjusting jo...

Adjusting Journal Entries and Required Disclosures to the Financial Statements Auditor’s Recommendations: Although auditors may continue to provide such assistance both now and in the future, under the pronouncement, the Water Authority should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the drafted financial statements. Water Authority’s Response: The Water Authority has received, reviewed and approved all journal entries, footnote disclosures and draft financial statements proposed for the current year audit. The Water Authority will continue to review and approve similar information in future years. Further, the Water Authority believes it has a thorough understanding of these financial statements and the ability to make informed judgments on those financial statements. Lastly, the Water Authority considers such assistance provided by the auditors to be the most cost effective manner to prepare such information.

View Audit 412758

Finding 1237971 (2025-002)

Material Weakness 2025

Lake County General Health District

OH

Subrecipient Monitoring Reporting Material Weakness § 200.208 § 200.328

Finding Number: 2025-002 Planned Corrective Action: Board of Elections has been provided with additional training by the Commissioners Finance staff on grant management and reporting. Necessary reports were filed with Secretary of State as required for the current fiscal year. Anticipated Completion...

Finding Number: 2025-002 Planned Corrective Action: Board of Elections has been provided with additional training by the Commissioners Finance staff on grant management and reporting. Necessary reports were filed with Secretary of State as required for the current fiscal year. Anticipated Completion Date: 08/31/2026 Responsible Contact Person: Dante Lewis, Board of Elections Director

View Audit 412751

Finding 1237967 (2025-001)

Material Weakness 2025

Georgia Association of Conservation Districts, Inc.

GA

Internal Control / Segregation of Duties Cash Management Reporting

2025-01: Segregation of Duties Name of contact person: Katie Sponberger, Executive Director Corrective Action: Duties and functions will be reviewed to determine where segregation needs to occur. The duties will be separated as much as possible and alternative controls will be implemented to compens...

2025-01: Segregation of Duties Name of contact person: Katie Sponberger, Executive Director Corrective Action: Duties and functions will be reviewed to determine where segregation needs to occur. The duties will be separated as much as possible and alternative controls will be implemented to compensate for lack of segregation. The costs of segregating certain duties exceeds the benefit and therefore, nonfinancial employees will be trained to provide some assistance in these areas. Proposed completion date: The Board will implement the above procedure immediately.

View Audit 412743

Finding 1237946 (2025-006)

Material Weakness 2025

City of Vincennes

IN

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Material Weakness § 200.1 § 200.302 § 200.303 § 200.328 § 200.329

FINDING 2025-006 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Catherine MM Lane Contact Phone Number and Email Address: 812-677-3959 clane@vincennes.in.gov Views of Responsible Officials: We concur with th...

FINDING 2025-006 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Catherine MM Lane Contact Phone Number and Email Address: 812-677-3959 clane@vincennes.in.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: All reports will be prepared by the clerk’s office and will be reviewed for errors and omissions by someone who is knowledgeable about the reporting requirements prior to submission. Anticipated Completion Date: The corrective action plan will be implemented by December 31, 2026.

View Audit 412721

Finding 1237942 (2025-001)

Material Weakness 2025

Elbert County, Colorado

CO

Reporting § 200.100 § 200.510

Finding 2025-001: Material Weakness, Inaccurate Schedule of Expenditures of Federal Awards (SEFA) Person(s) Responsible: Tiffany Hermes, Finance Director Anticipated Completion Date: 12/31/2026 Corrective Action Plan: The Finance Department has implemented quarterly meetings with other departments t...

Finding 2025-001: Material Weakness, Inaccurate Schedule of Expenditures of Federal Awards (SEFA) Person(s) Responsible: Tiffany Hermes, Finance Director Anticipated Completion Date: 12/31/2026 Corrective Action Plan: The Finance Department has implemented quarterly meetings with other departments that maintain grants to discuss and reconcile all grants. This includes Department Heads as well as their admin to enhance conversations to ensure we are tracking any new obligated grants as well as maintaining the current grants.

View Audit 412719

Finding 1237930 (2025-002)

Material Weakness 2025

Cincinnati Health Network, Inc.

OH

Material Weakness Reporting Internal Control / Segregation of Duties § 200.303

There is no disagreement with the audit finding. Action planned in response to finding: Management concurs with the finding. The Organization recognizes that documentation and reconciliation procedures supporting the Uniform Data System (UDS) submission were not sufficient to demonstrate the accurac...

There is no disagreement with the audit finding. Action planned in response to finding: Management concurs with the finding. The Organization recognizes that documentation and reconciliation procedures supporting the Uniform Data System (UDS) submission were not sufficient to demonstrate the accuracy and completeness of all reported data elements. During 2026, management will implement formal procedures requiring each UDS reporting element to be supported by documented source data, reconciled to underlying records, and independently reviewed prior to submission. These procedures will include a pre-submission review checklist and internal timeline so that all reconciliations and supporting documentation are completed and reviewed in advance of the UDS reporting deadline. Responsibility for preparation, review, and approval of UDS reporting will be formally assigned and documented. To strengthen this review, management plans to hire additional senior management personnel, including an Accounting Manager, to support the Accounting Department and oversee reconciliation of the UDS financial tables (Tables 8A, 9D, and 9E) to the general ledger and audited financial statements. In addition, management plans to hire a Director of Risk and Compliance, who will be responsible for overseeing the Organization's compliance with HRSA Health Center Program requirements, including the UDS reporting process. The Director of Risk and Compliance will perform an independent review of the completed UDS submission prior to certification, verifying that each reported data element is supported by documented source data and reconciliations, and will periodically monitor adherence to the procedures described in this response, with results reported to the Chief Executive Officer (CEO) and the Board of Directors. Any discrepancies identified before or after submission will be documented, investigated, and corrected in a timely manner, including through the HRSA UDS review and revision process where applicable. Management will also provide additional training to all staff involved in collecting, preparing, and reviewing UDS data, covering HRSA UDS reporting requirements, data definitions, and documentation standards. In addition, management will establish document retention procedures to ensure all supporting schedules, reconciliations, and reports are maintained in a centralized location and readily available for future review. New policies requiring timely account reconciliations and the retention of supporting records will be monitored and reviewed regularly by the Chief Financial Officer (CFO) to ensure they are consistently followed. Name(s) of the contact person(s) responsible for corrective action: Edward Murphy, Asante Muyungga, Charity Gutierrez, Anthony Parker, Bennett Baber, Jannell Robinson. Planned completion date for corrective action plan: June 30th, 2027

View Audit 412715

Finding 1237767 (2025-001)

Material Weakness 2025

DUNELAND YMCA, INC.

IN

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties § 200.512

In 2026, procedures were implemented to strengthen oversight of Single Audit reporting requirements and ensure timely submission of future reporting packages. Responsibility for monitoring applicable filing deadlines has been assigned to designated finance personnel, with deadlines incorporated into...

In 2026, procedures were implemented to strengthen oversight of Single Audit reporting requirements and ensure timely submission of future reporting packages. Responsibility for monitoring applicable filing deadlines has been assigned to designated finance personnel, with deadlines incorporated into the Organization’s annual audit calendar. Finance personnel will also coordinate with the independent auditors throughout the audit process to monitor completion and submission requirements and will address any potential delays or required extensions prior to the applicable deadline.

View Audit 412694

Finding 1237766 (2025-003)

Material Weakness 2025

SPRINGFIELD TOWNSHIP BOARD OF TRUSTEES

OH

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.302 § 200.328 § 200.329

If we receive federal funds in the future, we will stay abreast of current and changing policies and procedures.

View Audit 412681

Finding 1237761 (2025-001)

Material Weakness 2025

Industrial Technology Institute Dba Mi Manufacturing Tech Center

MI

Cash Management Allowable Costs / Cost Principles Reporting § 200.303

Condition: NIST Recovery Reports were prepared without evidence of a secondary review or approval by an individual independent of the preparer and knowledgeable of grant requirements. Planned Corrective Action: The Controller will prepare the monthly NIST Recovery Report and submit the report to the...

Condition: NIST Recovery Reports were prepared without evidence of a secondary review or approval by an individual independent of the preparer and knowledgeable of grant requirements. Planned Corrective Action: The Controller will prepare the monthly NIST Recovery Report and submit the report to the Vice President of Operations for review and approval. The Vice President of Operations will provide documented evidence of the review and approval to the Controller. Upon receipt of the documented evidence of review, the Controller will request that the Vice President of Operations initiate the recovery of the monthly NIST reimbursement amount. Contact person responsible for corrective action: Alan Kowalewski Anticipated Completion Date: 08/20/2026

View Audit 412671

Finding 1237735 (2025-001)

Material Weakness 2025

Hannas House

CA

Reporting Internal Control / Segregation of Duties § 200.328

CORRECTIVE ACTION PLAN Reference Number: 2025-001 – Internal Control over Federal Financial Reporting Name of Contact Person: Connie Franks , CEO A blue and black logo Description automatically generated Corrective Action: Corrective Action Plan Proposed Completion Date: September 23, 2025 Context a...

CORRECTIVE ACTION PLAN Reference Number: 2025-001 – Internal Control over Federal Financial Reporting Name of Contact Person: Connie Franks , CEO A blue and black logo Description automatically generated Corrective Action: Corrective Action Plan Proposed Completion Date: September 23, 2025 Context and Status of Correction Hanna’s House acknowledges the finding regarding the untimely submission of two quarterly SF-425 Federal Financial Reports. The two late reports identified in the 2025 audit occurred before the corrective actions established in response to the 2024 audit finding (2024-001) were implemented. As of September 23, 2025, Hanna’s House implemented additional procedures to improve the monitoring and tracking of federal reporting deadlines, strengthen oversight, and support the timely submission of required federal reports. These corrective actions were previously documented in Hanna’s House’s response to the 2024 audit finding. Although the prior finding included both SF-PPR and SF-425 reporting deficiencies, the corrective actions address the underlying reporting and monitoring requirements applicable to both programmatic and financial reporting. The procedures below have been implemented and remain in place. A. Reporting Responsibility and Accountability Hanna’s House has assigned responsibility for tracking federal reporting requirements, preparing required reports, and ensuring timely submission through the applicable federal reporting systems. Primary and backup staff have been assigned to provide continuity and accountability for reporting requirements, including during staff absences or transitions. Finance personnel are responsible for preparing and submitting the required SF-425 Federal Financial Reports, with executive leadership providing oversight. B. Reporting Calendar and Deadline Monitoring Hanna’s House established a federal reporting calendar to help ensure all required reporting deadlines are identified and monitored. The calendar: Includes quarterly and annual federal reporting deadlines based on the applicable Notices of Award. Establishes internal deadlines for report preparation, review, and submission. Includes automated reminders 30, 14, and 7 days before each reporting deadline. Is reviewed regularly by Finance and leadership to identify upcoming deadlines and address any potential issues in advance. C. Review and Oversight Hanna’s House has also established a review process to provide additional oversight of federal reporting. Under this process: Designated staff prepare the required reports and review the information for accuracy and completeness. Finance and executive leadership review reports prior to submission. Upcoming reporting deadlines are monitored and communicated to the appropriate staff. Quarterly compliance reviews are conducted to confirm that required reports have been completed and submitted timely. D. Ongoing Monitoring The reporting calendar, automated reminders, and supervisory review process provide ongoing monitoring of federal reporting requirements. Since these procedures were implemented, Hanna’s House has maintained timely submission of its required federal reports. This subsequent reporting history provides evidence that the corrective actions implemented in response to the prior-year finding have been effective. Hanna’s House will continue to monitor federal reporting deadlines and review compliance as part of its regular grant management process. Implementation Date and Current Status The corrective actions addressing Finding 2025-001 were implemented effective September 2025 in response to the prior-year audit finding. The two late SF-425 submissions identified in the 2025 audit occurred before these corrective actions were implemented. Since implementation, Hanna’s House has submitted its required federal reports timely, and the corrective procedures remain in place. Management considers the corrective actions associated with Finding 2025-001 fully implemented. Hanna’s House will continue to monitor the reporting process to ensure the procedures remain effective and federal reporting requirements continue to be met. Personnel Responsible for Implementation and Ongoing Oversight Connie Franks, Chief Executive Officer Corrective Action Implementation Date: September 23, 2025 Current Status: Corrective actions fully implemented.

View Audit 412641

Finding 1237710 (2025-001)

Material Weakness 2025

St. Vincent De Paul Village, Inc.

CA

Subrecipient Monitoring HUD Housing Programs Reporting § 200.303

Finding Number 2025-001: Special Tests and Provisions – Significant Deficiency in Internal Control Over Compliance Corrective Action: Management will further enhance its rental assistance procedures to require a documented rent reasonableness determination before a participant moves in and before an...

Finding Number 2025-001: Special Tests and Provisions – Significant Deficiency in Internal Control Over Compliance Corrective Action: Management will further enhance its rental assistance procedures to require a documented rent reasonableness determination before a participant moves in and before any change in rent or lease terms is charged to the program. The determination will be supported by comparable rental information and retained with the lease, amendments, rent notices, and other documentation supporting the approved rent amount. Program staff will use a standardized checklist to confirm that the determination and required lease documents are complete before approving initial assistance or a rent change. A supervisor will review and sign the checklist. Management will also review rent reasonableness at least annually for participants whose rent has not changed during the preceding year and retain the results in the participant file. Management will train applicable staff on the revised procedures and periodically review a sample of files to confirm that determinations are timely, adequately supported, and retained. Identified gaps will be corrected and addressed through follow-up training as needed. Name of Responsible Individual(s): Jason Brenier, Judy Bokhari, Luz Gonzales-Toscano and Thu Huynh-Vien Anticipated Completion Date: December 2026

View Audit 412640

Finding 1237665 (2025-002)

Material Weakness 2025

AUDRAIN COUNTY, MISSOURI

MO

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

All federally funded monies will be reported and spent as indicated in the agreement.

View Audit 412588

Finding 1237664 (2025-001)

Material Weakness 2025

Beacon, Inc.

IN

Internal Control / Segregation of Duties Material Weakness Reporting

2025 CORRECTIVE ACTION PLAN July 21, 2026 Beacon, Inc. respectfully submits the following Corrective Action Plan for the year ended December 31, 2025. Name and address of independent public accounting firm: Blue & Co., LLC 720 E Pete Rose Way, Suite 100 Cincinnati, OH 45202 Audit period: January 01,...

2025 CORRECTIVE ACTION PLAN July 21, 2026 Beacon, Inc. respectfully submits the following Corrective Action Plan for the year ended December 31, 2025. Name and address of independent public accounting firm: Blue & Co., LLC 720 E Pete Rose Way, Suite 100 Cincinnati, OH 45202 Audit period: January 01, 2025 - December 31, 2025 Beacon, Inc.’s response to the findings from the December 31, 2025 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Financial Statement Findings 2025-001 Finding: Preparation of Financial Statements Management’s response: Management concurs with the above finding and, accordingly, has engaged the auditors to assist with the preparation of the 2025 year-end external financial statements. Action planned: Engagement of the auditors to assist with the preparation of the 2025 year-end external financial statements. Management is currently reviewing the procedures and controls in place to address the preparation and review of external year-end financial statements and will revise and enhance as warranted. Implementation Date: Ongoing Responsible Person: Rev Forrest Gilmore, Executive Director

View Audit 412581

Finding 1237658 (2025-002)

Material Weakness 2025

Uniontown Housing Authority

AL

Allowable Costs / Cost Principles Reporting Matching / Level of Effort / Earmarking

2025-002 – ALN 10.415 – Rural Rental Housing Loan – Reporting Management acknowledged the finding and will follow the Auditor's recommendations as listed in the Schedule of Findings and Questioned Costs. Person Responsible for Correction of Finding: Ms. Erika Turner, Executive Director Projected Com...

2025-002 – ALN 10.415 – Rural Rental Housing Loan – Reporting Management acknowledged the finding and will follow the Auditor's recommendations as listed in the Schedule of Findings and Questioned Costs. Person Responsible for Correction of Finding: Ms. Erika Turner, Executive Director Projected Completion Date: December 31, 2026

View Audit 412578

Finding 1237656 (2025-001)

Material Weakness 2025

Chippewa County

MN

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

Finding Number: 2025-001 Finding Title: Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Reporting Program: 93.778 Grants to States for Medicaid Name of Contact Person Responsible for Corrective Action: Jennifer Bakkelund, Fiscal and Support Supervisor Corrective Action Planned:...

Finding Number: 2025-001 Finding Title: Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Reporting Program: 93.778 Grants to States for Medicaid Name of Contact Person Responsible for Corrective Action: Jennifer Bakkelund, Fiscal and Support Supervisor Corrective Action Planned: Work with courthouse to make salary adjustment entry to move the working costs to admin codes for the months prior to joining Time study. Once finished, will resubmit reports to show this change and the change of reporting the reduction in revenue on the 2556 report where it was only shown on the expense side and not the revenue side of the report in accordance with DHS instructions. Anticipated Completion Date: September 30, 2026

View Audit 412571

Finding 1237655 (2025-001)

Material Weakness 2025

Watonwan County

MN

Reporting Internal Control / Segregation of Duties § 200.303

Finding Number: 2025-001 Finding Title: Reporting Program: 93.778 Grants to States for Medicaid Name of Contact Person Responsible for Corrective Action: Erin Sandbo - Support Services and Accounting Supervisor (Human Services) Corrective Action Planned: The cause of the errors resulted from two iss...

Finding Number: 2025-001 Finding Title: Reporting Program: 93.778 Grants to States for Medicaid Name of Contact Person Responsible for Corrective Action: Erin Sandbo - Support Services and Accounting Supervisor (Human Services) Corrective Action Planned: The cause of the errors resulted from two issues within the County's cost allocation and the County's Local Collaborative Time Study breakout process. First, the Public Health cost allocation was inadvertently entered using a "dup" (duplicate) key on the keyboard that was also being used for the Income Maintenance cost allocation. As a result, the same account code was used for two separate program allocations. This caused the allocation calculation to be carried forward incorrectly and resulted in Q1-2025 amount not being appropriately included in each subsequent quarterly calculation. The error ultimately affected the accuracy of the annual allocation reporting. Second, an adjustment was made to the County's "LCTS Breakout" spreadsheet that is used quarterly to calculate the line entries on the LCTS Cost Schedule. Following this spreadsheet adjustment, only a portion of the salary and fringe associated with the CHS Supervisor was deducted from the allocation amount. The entire salary and fringe amount should have been deducted. This resulted in an additional error in the allocation calculation and contributed to the overstatement of reported expenses. The County reviewed the affected DHS-3220 reports and corrected and resubmitted them to DHS on September 1, 2026. In addition, the County has reviewed the allocation process and will ensure that: • The appropriate account number/code is used for each program allocation. • Allocation calculations are accurate and consistent from quarter to quarter. • Compare the IFS User Selected Budget Report to the IFS Account Activity Report to verify that the allocation amounts are accurate and recorded in the appropriate program area. The County has revised and strengthened the "LCTS Breakout" spreadsheet developed by the Fiscal Officer. The revised spreadsheet is designed to provide greater assurance that salary and fringe amounts are accurately reflected and appropriately deducted. The Supervisor will continue to review and sign off on quarterly reports to provide a secondary level of verification to ensure that costs are allowed, properly allocated, and accurately reported. Anticipated Completion Date: The County has corrected and resubmitted the 2025 DHS-3220 reports to OHS as of September 1, 2026.

View Audit 412569

Finding 1237644 (2025-001)

Material Weakness 2025

BOROUGH OF ETNA

PA

HUD Housing Programs Reporting Equipment & Real Property Management § 200.330

Audit period: January 1, 2025 to December 31, 2025 The finding from the December 31, 2025, schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the numbers assigned in the schedule. FINDINGS—FINANCIAL STATEMENT AUDIT FINDING: 2025-001 Community Proj...

Audit period: January 1, 2025 to December 31, 2025 The finding from the December 31, 2025, schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the numbers assigned in the schedule. FINDINGS—FINANCIAL STATEMENT AUDIT FINDING: 2025-001 Community Project Fund - Annual Real Property Reporting Recommendation: We recommend that the Borough implement a procedure to ensure that required reports are completed accurately and timely. The procedures should include assignment of responsibility, supervisory review, and retention of evidence supporting the timely submission of the SF-429 Cover Page and Attachment A with the applicable annual performance report. Action taken: The SF-429 form for 2025 was submitted retroactively to HUD to be included with the semi-annual report. The SF-429 form will also be submitted for the second and final year of the grant in the 2026 semi-annual report. All grant reporting will be thoroughly reviewed prior to submission and cross referenced with grant reporting guidance documents. If the United Stated Department of Housing and Urban Development has questions regarding this plan, please contact Mary Ellen Ramage at 412-781-0569 Sincerely yours, Mary Ellen Ramage Borough Manager Borough of Etna, Allegheny County, Pennsylvania

View Audit 412561

Finding 1237643 (2025-004)

Material Weakness 2025

Southwest Health and Human Services

MN

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

Finding Number: 2025-004 Finding Title: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Program: 93.563 Child Support Services Name of Contact Person Responsible for Corrective Action: Jenny Severson – Fiscal Officer Tiffany Bailey – Fiscal Manager Corrective Action Planned: The ...

Finding Number: 2025-004 Finding Title: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Program: 93.563 Child Support Services Name of Contact Person Responsible for Corrective Action: Jenny Severson – Fiscal Officer Tiffany Bailey – Fiscal Manager Corrective Action Planned: The planned corrective action is to review report instructions regularly, accurately identify eligible revenue and expenditures for each report and resubmit any report corrections timely. A process has been implemented for verifying FTE payroll splits and verifying staff time is allocated to the appropriate programs. Anticipated Completion Date: December 31, 2026

View Audit 412560

Finding 1237641 (2025-005)

Material Weakness 2025

Southwest Health and Human Services

MN

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

Finding Number: 2025-005 Finding Title: Activities Allowed or Unallowed and Allowable Costs/Cost Principles, and Reporting Program: 93.778 Grants to States for Medicaid Name of Contact Person Responsible for Corrective Action: Jenny Severson – Fiscal Officer Tiffany Bailey – Fiscal Manager Correctiv...

Finding Number: 2025-005 Finding Title: Activities Allowed or Unallowed and Allowable Costs/Cost Principles, and Reporting Program: 93.778 Grants to States for Medicaid Name of Contact Person Responsible for Corrective Action: Jenny Severson – Fiscal Officer Tiffany Bailey – Fiscal Manager Corrective Action Planned: The planned corrective action is to review report instructions regularly, accurately identify eligible revenue and expenditures for each report and resubmit any report corrections timely. A process has been implemented for verifying FTE payroll splits and verifying staff time is allocated to the appropriate programs. Anticipated Completion Date: December 31, 2026

View Audit 412560

Corrective Action Plans

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