Corrective Action Plans

Finding 1224987 (2025-048)

Material Weakness 2025

RI

Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Eligibility

The Department has worked with the ACF Data Unit and the system vendor to identify the required coding corrections and implement updates consistent with current ACF reporting guidance. System enhancements are underway to address the identified coding issues. The Department will also implement a docu...

The Department has worked with the ACF Data Unit and the system vendor to identify the required coding corrections and implement updates consistent with current ACF reporting guidance. System enhancements are underway to address the identified coding issues. The Department will also implement a documented quality assurance review process for each quarterly ACF-199 submission. Prior to submission, designated staff will validate report data against RIBridges case information, verify compliance with current ACF reporting guidance, and document supervisory review and approval. DHS has incorporated updated ACF reporting guidance into its reporting procedures and will provide training and technical assistance to staff responsible for preparing and reviewing ACF-199 reports to ensure consistent application of federal reporting requirements. The Department will also obtain documentation on a quality assurance review for the quarterly 199 reports. Anticipated Completion Date: Ongoing Contact Person: Nikolaos Petropoulos, Data Analyst III, Office of Performance Analytics & Continuous Improvement, Department of Human Services nikolaos.petropoulos@dhs.ri.gov

View Audit 408197

Finding 1224986 (2025-047)

Material Weakness 2025

State of Rhode Island

RI

Eligibility Special Tests & Provisions Subrecipient Monitoring § 200.303

The Department updated Policy (218-RICR-20-002) to reflect 45 CFR 205.55, including procedures for using IEVS interfaces and incorporating the resulting information into eligibility determinations. The updated policy will be sent to OMB 7/1/26. Additionally, the updated policy will be discussed at m...

The Department updated Policy (218-RICR-20-002) to reflect 45 CFR 205.55, including procedures for using IEVS interfaces and incorporating the resulting information into eligibility determinations. The updated policy will be sent to OMB 7/1/26. Additionally, the updated policy will be discussed at meetings (Office Hours, Training consultations, and Quarterlies). System interfaces will run on a quarterly basis consistent with the language in 45 CFR §205.55 regarding all applicants. This process is being tracked and prioritized in BRR-141767 which is the ticket number used to communicate with the vendor. In addition, DHS is strengthening operational controls to ensure required IEVS interfaces are executed, reviewed, and acted upon within required federal timeframes. Supervisors will monitor outstanding interface matches and timeliness of case actions as part of routine quality assurance activities to ensure interface information is appropriately evaluated, documented within the electronic case record, and incorporated into eligibility determinations. These actions will be supported by the Department's broader supervisory quality assurance and pre-authorization review initiatives to improve verification accuracy, ensure timely processing of electronic data matches, and reduce future eligibility errors. The Department also notes that a portion of the untimely processing identified during the audit occurred during the RIBridges cybersecurity incident, when staff were operating under documented Business Continuity Plan (BCP) procedures to restore critical operations and address processing backlogs. While these circumstances contributed to delays during the audit period, the Department recognizes the need to strengthen routine controls and has implemented the corrective actions described above. Information security enhancements are further addressed in response to Finding 2025-032. Anticipated Completion Date: Ongoing – The process of posting updated policy and then the public comment period historically takes about 6 months. Disseminating information to staff regarding the policy updates will begin July 2026 and continue until saturation. Contact Person: Donna Rook, Administrator, Family & Adult Services, Department of Human Services donna.m.rook@dhs.ri.gov

View Audit 408197

Finding 1224974 (2025-045)

Material Weakness 2025

State of Rhode Island

RI

Reporting

RIDOH agrees with the finding and recommendations. 2025-045a: RIDOH will require review of all UGSs monthly against the Workday transactional data and the Federal Monthly Grants Tracker to ensure expenditure amounts agree on all spreadsheets. 2025-045b: Grants Management staff will verify cumulative...

RIDOH agrees with the finding and recommendations. 2025-045a: RIDOH will require review of all UGSs monthly against the Workday transactional data and the Federal Monthly Grants Tracker to ensure expenditure amounts agree on all spreadsheets. 2025-045b: Grants Management staff will verify cumulative transactional data before signing off on all Federal Financial Reports (FFRs). 2025-045c: RIDOH will review the RIFANS and Workday transactional data for Immunization FFRs submitted in SFY2025 and submit amended FFRs as required. RIDOH will complete and submit the remaining two overdue FFRs. Anticipated Completion Dates: 2025-045a / 2025-045b: July 31, 2026 2025-045c: July 31, 2026 for ELC, December 31, 2026 for Immunization Contact Persons: Carla Lundquist, Deputy CFO / Federal Grants Manager, Department of Health carla.lundquist@health.ri.gov Shannon Healy, Assistant Federal Grants Manager, Department of Health shannon.healy@health.ri.gov Julie DeMelo, Assistant Director of Health (Budget & Finance), Department of Health julie.demelo@health.ri.gov

View Audit 408197

Finding 1224954 (2025-038)

Material Weakness 2025

State of Rhode Island

RI

Reporting Internal Control / Segregation of Duties

Initially, the Pandemic Recovery Office used contractors to help with the ERA 2 program data validation function for U.S. Treasury reporting purposes. PRO decided to directly incorporate the ERA 2 data validation process into PRO’s operations using State personnel rather than contractors. At this tr...

Initially, the Pandemic Recovery Office used contractors to help with the ERA 2 program data validation function for U.S. Treasury reporting purposes. PRO decided to directly incorporate the ERA 2 data validation process into PRO’s operations using State personnel rather than contractors. At this transition point, PRO staff became aware that inconsistencies existed in the demographic categorization of ERA 2 participant data. PRO hired a consultant, who along with PRO staff, developed a Power BI model and standardized the logic associated with the assessment of the ERA 2 participant data. Once PRO standardized the data across ERA 2 participants, PRO updated the ERA 2 participant demographic data in the final ERA 2 report to U.S. Treasury to reflect the new data standardization process PRO implemented. The standardization of the ERA 2 participant demographic data corrected the earlier reports submitted to U.S. Treasury. The final ERA 2 report, as is the case with all U.S. Treasury reports, is cumulative as of the date of submission of the report. The final ERA 2 report covered the entire period of performance for the ERA 2 program, the end point of which was September 30, 2026. Anticipated Completion Date: January 26, 2026, the date on which the final ERA 2 report was submitted. Contact Persons: Paul Dion, Director, Pandemic Recovery Office, Department of Administration paul.l.dion@doa.ri.gov Brianna Ruggiero, Chief of Staff, Pandemic Recovery Office, Department of Administration brianna.ruggiero@doa.ri.gov

View Audit 408197

Finding 1224952 (2025-036)

Material Weakness 2025

State of Rhode Island

RI

Reporting Internal Control / Segregation of Duties

2025-036a: ETA 2112 & ETA 191: RIDLT’s Business Affairs Division agrees with the audit findings that this report has been submitted late due to delays in completing the required reconciliations. The figures reported on the ETA-2112 & ETA 191 must agree with bank records, and reconciling balances wit...

2025-036a: ETA 2112 & ETA 191: RIDLT’s Business Affairs Division agrees with the audit findings that this report has been submitted late due to delays in completing the required reconciliations. The figures reported on the ETA-2112 & ETA 191 must agree with bank records, and reconciling balances with another State agency has been particularly challenging, especially following the transition to the new system. To address this issue, we will meet with the other agency as soon as possible to review the reconciliation process, identify and resolve outstanding differences, and establish a timelier reconciliation schedule. We will also make the other agency aware of this audit finding and emphasize the importance of completing reconciliations promptly to ensure future reports are submitted accurately and on time. ETA 9130 & ETA 2208A: RIDLT’s Business Affairs Division agrees with the audit findings and has already implemented a schedule and secondary review documentation process for USDOL’s new ETA 9130 reporting system. This new system requires preparer and certifier approvals. USDOL does not allow for these two approvers to be the same person. The report itself shows only the final certifier’s approval. RIDLT has found additional documentation within the system that we subsequently printed as proof that there were two separate signatures on the reports and will continue to do so going forward. This along with dates for preparer and certifier to complete the reporting process will be added to the procedures and marked as recurring “to do” items in employees’ calendars to ensure timely reporting. ETA 9050, 9052, and 9055: RIDLT’s Labor Market Information Division agrees with the audit findings. To improve accountability and monitoring, a formal report tracking process has been implemented. All required reports are now documented on the date of submission. For any report not submitted by the established deadline, the reason for the delay is documented and maintained as part of the reporting record. Examples of documented exceptions may include delays resulting from missing source data, data requiring clarification or validation, system-related issues, or other circumstances affecting the timely completion of the report. Additionally, management has implemented a supervisory review and verification process. Supervisors are now required to verify that reports have been submitted by the required due date and that the underlying data has been reviewed for completeness and accuracy. Documentation of this review is maintained to provide an audit trail and strengthen internal oversight. Management also recognizes the need for a formal communication protocol when circumstances outside the reporting unit's control may affect the ability to meet established reporting deadlines. To address this, management will develop and implement a notification procedure requiring timely communication with ETA whenever reporting delays are anticipated. Such notifications will identify the cause of the delay, including but not limited to staffing shortages resulting from temporary employee leave, vacancies, delays in receiving required information from other divisions, or other operational constraints. The notification will also include, when available, an estimated timeline for report completion and submission. Management believes these corrective actions will strengthen internal controls, improve documentation and oversight, and enhance communication regarding reporting requirements. These measures are intended to reduce the risk of future late submissions and ensure greater compliance with reporting deadlines and program requirements. 2025-036b: The report in question was amended on 3/31/2026. Anticipated Completion Dates: ETA 2112 & ETA 191: September 2026. This timeframe will allow us to complete the outstanding reconciliations from previous months, resolve any discrepancies, and implement processes to support timely submission of future reports. ETA 9050, 9052, and 9055: September 2026. ETA 9130 & ETA 2208A: Reports for quarter ending June 30, 2026. Contact Persons: Rosanna Hernandez, Business Affairs, Department of Labor and Training rossanna.hernandez@dlt.ri.gov Kathleen Greenwell, Labor Market Information, Department of Labor and Training kathleen.greenwell@dlt.ri.gov Barbara Seiler, Business Affairs, Department of Labor and Training barbara.j.seiler@dlt.ri.gov

View Audit 408197

Finding 1224951 (2025-035)

Material Weakness 2025

State of Rhode Island

RI

Special Tests & Provisions Reporting

We concur with the recommendation. Regarding (1) – RIDLT UI Administrative staff meet weekly with ETSS to review and prioritize pending projects. The programming changes required to calculate and apply the 15% fraud penalty are included in these priorities. Currently, RIDLT has one dedicated IT reso...

We concur with the recommendation. Regarding (1) – RIDLT UI Administrative staff meet weekly with ETSS to review and prioritize pending projects. The programming changes required to calculate and apply the 15% fraud penalty are included in these priorities. Currently, RIDLT has one dedicated IT resource, who is fully engaged with the Online Employer Form Modernization project (see #2). Following the completion of these initiatives, RIDLT will begin development for the 15% fraud penalty programming. Regarding (2) – RIDLT is currently engaged in the Online Employer Form Modernization project. This system enhancement is necessary to: • Eliminate unnecessary employer forms that do not require adjudication. • Use conditional logic to display only relevant questions. • Automatically identify and flag responses that may affect eligibility. • Reduce staff time spent on non-actionable forms. • Enable staff to focus limited resources on claims that require review. • Make an adequacy determination (RIGL 28- 43-3(2)(viii)). Anticipated Completion Date: November 30, 2026 Contact Person: Philip D’Ambra, Deputy Director (Income Support) UI Director, Department of Labor and Training Philip.l.dambra@dlt.ri.gov

View Audit 408197

Finding 1224950 (2025-034)

Material Weakness 2025

State of Rhode Island

RI

Internal Control / Segregation of Duties Subrecipient Monitoring Eligibility

2025-034a: We appreciate the work performed by OAG and understand the importance of the SAR. While the noted exception, was an isolated incident, our internal control was lacking. We do have compensating controls in place to identify potential noncompliance with the registration requirement, this is...

2025-034a: We appreciate the work performed by OAG and understand the importance of the SAR. While the noted exception, was an isolated incident, our internal control was lacking. We do have compensating controls in place to identify potential noncompliance with the registration requirement, this isolated transaction did not appear on the daily error report. ETSS is investigating how this occurred and will ensure that similar exception do not occur in the future. We will also use your recommendation as an opportunity to review and modify any control deficiencies related to the current legacy limitations. For example, not having a field on the AS400 to capture the dependent SS#, after initial application is filed. 2025-034b: DLT’s 2024 Systems Modernization Strategic Plan outlines long-term efforts to enhance system integration, automation, and data monitoring capabilities. RI DLT Modernization Strategic Plan - 2024.pdf. The Department is actively evaluating the feasibility of financing this effort. 2025-034c: UI Administration will consult with DLT legal office to update applicable regulations. Anticipated Completion Dates: 2025-034a: October 31, 2026 2025-034b: Ongoing 2025-034c: October 31, 2026 Contact Person: Sarah Fresch, Deputy Director, COO, Department of Labor and Training sarah.fresch@dlt.ri.gov Philip D’Ambra, Deputy Director (Income Support) UI Director, Department of Labor and Training Philip.l.dambra@dlt.ri.gov

View Audit 408197

Finding 1224935 (2025-003)

Material Weakness 2025

City of Huntington

IN

Reporting Internal Control / Segregation of Duties Subrecipient Monitoring § 200.303

FINDINGS 2025-003 Contact person responsible for Corrective Action: Christi McElhaney, City Clerk Treasurer Contact phone number: 260-356-1400 x2016 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: The City continues to implement controls when contrac...

FINDINGS 2025-003 Contact person responsible for Corrective Action: Christi McElhaney, City Clerk Treasurer Contact phone number: 260-356-1400 x2016 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: The City continues to implement controls when contracted consultants are assisting with projects, to ensure grant reports are properly reviewed and approved by a designated City employee before being submitted. Anticipated completion date: July 31, 2026

View Audit 408194

Finding 1224932 (2025-003)

Material Weakness 2025

Williamston Housing Authority

NC

Eligibility HUD Housing Programs Reporting

Name of Contact Person: Michael Gaddy, Executive Director. Corrective Action: We will implement proper internal control procedures for the Public and Indian Housing program eligibility requirements. Management has established a checklist for applications and will establish a checklist for Move-ins a...

Name of Contact Person: Michael Gaddy, Executive Director. Corrective Action: We will implement proper internal control procedures for the Public and Indian Housing program eligibility requirements. Management has established a checklist for applications and will establish a checklist for Move-ins and Move-outs. Proposed completion date: Immediately.

View Audit 408192

Finding 1224930 (2025-001)

Material Weakness 2025

Town of Huntington

NY

Reporting Matching / Level of Effort / Earmarking § 200.512

Name of Auditee: Town of Huntington, New York Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: Year ended December 31, 2025 CAP Prepared by: Sabrina Mastroianni, Deputy Comptroller Phone: (631) 351-3346 (1) Audit Finding 2025-001 - The Town did not submit its audited financial...

Name of Auditee: Town of Huntington, New York Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: Year ended December 31, 2025 CAP Prepared by: Sabrina Mastroianni, Deputy Comptroller Phone: (631) 351-3346 (1) Audit Finding 2025-001 - The Town did not submit its audited financial information for the year ended December 31, 2024, to the FAC by the required deadlines. (a) Implementation Plan of Actions - The Town will submit required reports to the FAC within nine months after the end of the audit period. (b) Implementation Date - This will be implemented for the year ending December 31, 2026. (c) Persons Responsible for Implementation - The Comptroller and the Town Board.

View Audit 408187

Finding 1224916 (2025-002)

Material Weakness 2025

Lifewire

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting § 200.300 § 200.306 § 200.308 § 200.309 § 200.403

Corrective Action: What we've already been doing to correct the issue LifeWire has strengthened oversight within Services by consolidating the Services and Rapid Rehousing programs under a single Director, creating clearer accountability for expenditure documentation. The expanded multi-tier approva...

Corrective Action: What we've already been doing to correct the issue LifeWire has strengthened oversight within Services by consolidating the Services and Rapid Rehousing programs under a single Director, creating clearer accountability for expenditure documentation. The expanded multi-tier approval workflow (Advocate → Manager → Director → Finance) now includes a documentation completeness check at each stage, requiring that underlying support for all charges be attached and verified before a transaction advances toward payment. LifeWire has updated its policies and procedures to explicitly require that underlying documentation supporting the nature and amount of each expenditure be retained at the time the charge is generated from the program services department, consistent with 2 CFR §200.403(g). This will include clear guidance on what constitutes sufficient documentation (e.g., invoices, receipts, lease agreements, or other source documents) and the requirement that payment confirmation alone is not sufficient. What else we are putting in place LifeWire has implemented training for all Services staff on federal documentation standards, reinforcing that charges to federal programs must be supported by documentation that evidences both the nature and the amount of the expense. The Services Director is responsible for delivering and maintaining this training on an ongoing basis. All staff will be required to formally acknowledge completion of the training and their understanding of the updated requirements. Responsible Staff: Olivia Montgomery •Advocates and program staff (generating and attaching underlying documentation at pointof charge) •Services Managers (first level review for documentation completeness) •Services Director (program oversight and secondary review) •Executive Director (internal audit oversight; reviews Director of Services approvals andmonitors compliance) •Finance Director / Finance Department (final documentation review, approval, and paymentoversight) Anticipated Completion Date: Policy and procedure updates and staff training will be completed, with full implementation and demonstrated compliance expected by Q3 2026.

View Audit 408150

Finding 1224913 (2025-001)

Material Weakness 2025

Lifewire

WA

Subrecipient Monitoring HUD Housing Programs Reporting § 200.303

Finding Number 2025-001 – Special Tests and Provisions (Rent Reasonableness) Corrective Action: What we've already been doing to correct the issue LifeWire has strengthened oversight within Services by consolidating the Services and Rapid Rehousing programs under a single Director, creating clearer ...

Finding Number 2025-001 – Special Tests and Provisions (Rent Reasonableness) Corrective Action: What we've already been doing to correct the issue LifeWire has strengthened oversight within Services by consolidating the Services and Rapid Rehousing programs under a single Director, creating clearer accountability and consistency in implementation. Additionally, we have expanded our approval workflow to include multiple levels of review: Advocate → Manager → Director → Finance. This structured, multi-tiered review process increases oversight and enhances our ability to identify and address issues related to rent reasonableness documentation prior to payment. As part of this enhanced workflow, we require that internal audit practices occur at each level of approval, ensuring that rent reasonableness and comparable unit analysis documentation is reviewed for completeness, accuracy, and timeliness — and that review and approval occur prior to tenant move-in — before advancing to the next stage. At each level, reviewers will audit a minimum of 5% of files or 5 files per month, whichever is greater. What else we are putting in place LifeWire will continue to provide comprehensive training for all Services staff, including advocates, managers, and directors, focused on rent reasonableness requirements and the timing of comparable unit analysis completion and review. The Services Director is responsible for delivering and overseeing this training. This training will address the specific requirements outlined in 24 CFR §578.49 and §578.51 and reinforce expectations that documentation is completed, reviewed, andapproved prior to tenant move-in. All staff will be required to formally acknowledge completion ofthe training and their understanding of the updated requirements. Responsible Staff: Olivia Montgomery •Advocates (initial preparation of rent reasonableness and comparable unit analysisdocumentation) •Services Managers (first-level supervisory review and approval prior to move-in) •Services Director (program oversight and secondary review) •Executive Director (internal audit of Services Director approvals) •Finance Director / Finance Department (final review, approval, and payment oversight) Anticipated Completion Date: Enhancements are currently in progress, with full implementation and demonstrated compliance expected by Q3 2026.

View Audit 408150

Finding 1224908 (2025-004)

Material Weakness 2025

Central Maine Area Agency on Aging D/b/a Spectrum Generations

ME

Reporting Internal Control / Segregation of Duties Subrecipient Monitoring

Finding 2025-004: Inadequate Financial Reporting Expertise Resulting in Incorrect Submission of Required Federal Reports Type of Finding: Significant Deficiency in Internal Control and Nonmaterial Noncompliance Corrective Action Narrative: Spectrum Generations will strengthen federal compliance repo...

Finding 2025-004: Inadequate Financial Reporting Expertise Resulting in Incorrect Submission of Required Federal Reports Type of Finding: Significant Deficiency in Internal Control and Nonmaterial Noncompliance Corrective Action Narrative: Spectrum Generations will strengthen federal compliance reporting procedures so required reports are prepared accurately, reviewed before submission, and supported by documentation. Planned Corrective Actions: Written procedures will be developed for recurring federal compliance reports. Submission checklists will be created and retained with each filing. All federal reports will receive documented Controller review before submission. Supporting schedules and source documentation will be maintained for all reported amounts. Responsible Officials: Controller, CFO and Program Management Expected Outcome: Federal compliance reporting will be more consistent, accurate, documented and independently reviewed before submission.

View Audit 408145

Finding 1224905 (2025-003)

Material Weakness 2025

Central Maine Area Agency on Aging D/b/a Spectrum Generations

ME

Reporting Internal Control / Segregation of Duties Subrecipient Monitoring § 200.512

Finding 2025-003: Late Submission of Data Collection Form Type of Finding: Federal Single Audit Reporting Finding Corrective Action Narrative: This finding appears to result from audit completion delays associated with unresolved MaineCare Fee-for-Service AR balances. The underlying reconciliation i...

Finding 2025-003: Late Submission of Data Collection Form Type of Finding: Federal Single Audit Reporting Finding Corrective Action Narrative: This finding appears to result from audit completion delays associated with unresolved MaineCare Fee-for-Service AR balances. The underlying reconciliation issues are addressed through the corrective actions for Findings 2025-001 and 2025-002. Planned Corrective Actions: Management will establish an annual audit preparation calendar. Key balance sheet reconciliations will be completed and reviewed before audit fieldwork begins. Controller and CFO will monitor Single Audit reporting deadlines quarterly. Federal filing deadlines will be incorporated into the agency finance and compliance calendar. Responsible Officials: Controller and CFO Expected Outcome: Improved audit readiness and deadline monitoring will support timely future federal reporting package submissions.

View Audit 408145

Finding 1224902 (2025-002)

Material Weakness 2025

Central Maine Area Agency on Aging D/b/a Spectrum Generations

ME

Allowable Costs / Cost Principles Material Weakness Reporting

Finding 2025-002: Account Reconciliations Type of Finding: Material Weakness in Internal Control Over Financial Reporting and Internal Control Over Compliance Corrective Action Narrative: Spectrum Generations will strengthen the balance sheet reconciliation process and supervisory review controls ac...

Finding 2025-002: Account Reconciliations Type of Finding: Material Weakness in Internal Control Over Financial Reporting and Internal Control Over Compliance Corrective Action Narrative: Spectrum Generations will strengthen the balance sheet reconciliation process and supervisory review controls across significant accounts. Planned Corrective Actions: Controller will prepare monthly reconciliations for all significant balance sheet accounts, including cash, AR, prepaid expenses, refundable advances, deferred revenue, notes payable and other material accounts. Each reconciliation will include the general ledger balance, supporting detail, reconciling items, preparer name, and date prepared. CFO will perform and document secondary review, including date of review and follow-up on unresolved items. A standardized reconciliation template and balance sheet close checklist will be used agency-wide. Responsible Officials: Controller and CFO Expected Outcome: Formal monthly reconciliations and documented supervisory review will improve financial reporting accuracy and strengthen compliance oversight.

View Audit 408145

Finding 1224899 (2025-001)

Material Weakness 2025

Joint Municipal Water Sewer Commission

SC

Internal Control / Segregation of Duties Reporting

The Commision will submit its fiscal year 2025 Single Audit reporting package to the Federal Audit Clearinghouse prompty upon issuance of the final audit reports. To prevent a recurrence. the Commission will implement a annual process for monitoring the completion and submission of its Single Audit....

The Commision will submit its fiscal year 2025 Single Audit reporting package to the Federal Audit Clearinghouse prompty upon issuance of the final audit reports. To prevent a recurrence. the Commission will implement a annual process for monitoring the completion and submission of its Single Audit. The designated responsible official will formal maintain a compliance calendar identifying the applicable Federal Audit Clearinghouse submission deadline. The Commission will initiate the annual audit process sufficiently in advance of the filing deadline and will monitor the audit's progress at least quarterly. Outstanding requests or matters that could delay completion will be promptly addressed and communicated to the appropriate members of managment and Commission. The Commission will also review the filing status and verify that the reporting package has been submitted and accepted by the Federal Audit Clearhouse within the required time frame. Documentation supporting submission and acceptance will be retained.

View Audit 408140

Finding 1224896 (2025-001)

Material Weakness 2025

CIVICA FOUNDATION

UT

Reporting Internal Control / Segregation of Duties Subrecipient Monitoring § 200.328 § 200.329

Finding Summary: Material noncompliance was noted in reporting as reported amounts did not agree to underlying supporting documentation. Responsible Individuals: Kim Clay, Corporate Controller and Paul DiTomasso, Site`2 Controller Corrective Action Plan: Management will review and improve internal c...

Finding Summary: Material noncompliance was noted in reporting as reported amounts did not agree to underlying supporting documentation. Responsible Individuals: Kim Clay, Corporate Controller and Paul DiTomasso, Site`2 Controller Corrective Action Plan: Management will review and improve internal controls over reporting to ensure that reported amounts agree to underlying supporting documentation. Anticipated Completion Date: June 30, 2026

View Audit 408122

Finding 1224895 (2025-001)

Material Weakness 2025

MAYSVILLE REGIONAL WATER & SEWER DISTRICT

IN

Subrecipient Monitoring Internal Control / Segregation of Duties Reporting § 200.303

FINDING 2025-001 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds – Internal Controls Contact Person Responsible for Corrective Action: Melinda Amstutz (Office Manager) Contact Phone Number and Email Address: (260) 657-1552 Views of Responsible Officials: We concur with ...

FINDING 2025-001 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds – Internal Controls Contact Person Responsible for Corrective Action: Melinda Amstutz (Office Manager) Contact Phone Number and Email Address: (260) 657-1552 Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: When preparing the Monthly Project Spending Reports, Melinda Amstutz, office manager will be signing the report and initial as the preparer and dating it. Then another employee or Board member will review the report and initial the review box. Anticipated Completion Date: The projected date of completion of major tasks for the planned corrective actions described above will be completed on July 15, 2026.

View Audit 408121

Finding 1224893 (2025-006)

Material Weakness 2025

The Benjamin Rose Institute on Aging

OH

Reporting § 200.302

i. Comments on the Finding and Each Recommendation – We acknowledge the finding. The reporting di􀆯erences resulted from inadequate reconciliation between the programmatic report and the Organization's accounting records prior to submission. Communication between operations and finance sta􀆯 have been...

i. Comments on the Finding and Each Recommendation – We acknowledge the finding. The reporting di􀆯erences resulted from inadequate reconciliation between the programmatic report and the Organization's accounting records prior to submission. Communication between operations and finance sta􀆯 have been strengthened to improve accuracy, completeness, and consistency of future reporting in other programs. Additionally, this federal funding program has come to an end. We have further changed our processes and procedures as it relates to reporting on grants in that all financial reporting will be done directly by the Finance department. This is a practice that was previously in place for most of the organization but not fully implemented in the Housing and Financial Wellness department. ii. Actions Taken on the Finding – Finance will take over reporting on grants directly in areas that it has not and plans to complete an internal review to verify that it is not overlooking any areas of reporting.

View Audit 408118

Finding 1224891 (2025-001)

Material Weakness 2025

VERMONT FAMILY NETWORK, INC.

VT

Eligibility Reporting Internal Control / Segregation of Duties

Finding type: Significant deficiency. Federal awards: 84.328 Special Education Parent Information Centers (Direct Funding). 84.421 Disability Innovation Fund (Passed through Vermont Department of Aging and Independent Living). Criteria: Organizations spending more than the minimum amount of Federal ...

Finding type: Significant deficiency. Federal awards: 84.328 Special Education Parent Information Centers (Direct Funding). 84.421 Disability Innovation Fund (Passed through Vermont Department of Aging and Independent Living). Criteria: Organizations spending more than the minimum amount of Federal awards must submit an audit reporting package to the Federal Audit Clearinghouse within nine months of the end of the fiscal year per the requirements of the Uniform Guidance. Condition: Vermont Family Network, Inc. did not submit the required audit reporting package by the due date for the year ended June 30, 2025. Management concurrence: Management concurs with this finding. Corrective action plan: In fiscal year 2026, new procedures and shared leadership roles were implemented to prevent this from happening again. Name of responsible official: Michelle Kessler, Interim Executive Director. Projected completion date: December 31, 2026.

View Audit 408117

Finding 1224887 (2025-003)

Material Weakness 2025

City of Lawrence, Kansas

KS

Reporting

Finding 2025-003: Significant Deficiency and Noncompliance: Reporting Finding: The City’s Airport Improvement Program has reporting requirements that are applicable to the program and that should be submitted to the federal government throughout the project. SF-271 and SF-425 reports are required to...

Finding 2025-003: Significant Deficiency and Noncompliance: Reporting Finding: The City’s Airport Improvement Program has reporting requirements that are applicable to the program and that should be submitted to the federal government throughout the project. SF-271 and SF-425 reports are required to be submitted by December 31st each year when the grant is open. In addition, form 5370-1 (construction projects) or 5100-400 (non-construction projects) is required to be submitted within 30 days of the end of the quarter. The City did not submit in a timely manner all the required reports stipulated in the grant agreements. Corrective Actions Taken or Planned: The City of Lawrence, Municipal Services and Operations Department will undertake the following corrective action plan to ensure all required reports comply with the provisions of these grant agreements for which the City has entered. 1. All required documents for 2025 and 2026 will be completed and submitted by the anticipated completion date listed below. 2. In the future, MSO management staff and the Airport Manager will monitor, and remind, the contracted project engineers of their assigned responsibilities to prepare and submit the required reports to the respective contacts at the US Department of Transportation within the timeframes stated in the grant agreements. 3. MSO management staff will ensure that the required documents, and proof of their submissions, are filed in the City of Lawrence’s internal document management system to ensure the Finance Department and external auditors have access to the required documents. The Finance Department will notify the MSO Director of any late or missing federal reports. Contact Person: Shaun Cookson, Rachelle Mathews Anticipated Completion Date: December 31, 2026

View Audit 408113

Finding 1224886 (2025-001)

Material Weakness 2025

City of Lawrence, Kansas

KS

Reporting Allowable Costs / Cost Principles

Finding 2025-001: Significant Deficiency and Noncompliance: Cut-off Errors in Preparing the SEFA Finding: The City’s reported expenditures on the fiscal year 2025 SEFA that were incurred in other fiscal years. For two grants that were closed out and finalized during fiscal year 2025, the City includ...

Finding 2025-001: Significant Deficiency and Noncompliance: Cut-off Errors in Preparing the SEFA Finding: The City’s reported expenditures on the fiscal year 2025 SEFA that were incurred in other fiscal years. For two grants that were closed out and finalized during fiscal year 2025, the City included certain expenditures incurred prior to January 1, 2025, on its 2025 SEFA, representing adjustment of amounts previously reported on the 2023 and 2024 SEFA to account for the finalized grant numbers. The adjustment amounts on the 2025 SEFA for these two grants do represent any actual expenditures incurred in 2025. Therefore, they were not reported on the SEFA in a manner consistent with the fiscal year in which they were recognized as expenditures in the financial statements. This resulted in a net effect of $32,815 of allowable costs reported on the fiscal year 2025 SEFA which were incurred in previous fiscal years. Corrective Actions Taken or Planned: The City has reviewed the circumstances noted in Finding 2025‑001 regarding the reporting of expenditures on the fiscal year 2025 SEFA for two federal airport grants that had already been closed and finalized. These grants required no additional programmatic or financial activity in fiscal year 2025, and the amounts appearing on the 2025 SEFA represented adjustments of expenditures originally recognized and reported in prior fiscal years. Because the grants are fully closed, no further corrective actions are required related to these specific awards beyond the correction already noted in the audit finding. To strengthen controls and ensure accurate reporting periods for all future federal airport grants, the City will implement a dual review process for annual grant expenditure reporting. Both the Airport Manager, MSO Management Analyst and the Finance Grant Accountant will independently review and validate the recording period for all federally funded airport grant expenditures prior to SEFA preparation. This additional verification step will help ensure proper cut off, alignment with the period of recognition in the financial statements, and continued compliance with federal reporting requirements. Contact Person: Shaun Cookson, Rachelle Mathews Anticipated Completion Date: To be completed by December 31st, 2026

View Audit 408113

Finding 1224877 (2025-004)

Material Weakness 2025

Borough of Prospect Park School District

NJ

Reporting School Nutrition Programs

Condition: the District did not provide an updated capital asset report including additions, deletions, and depreciation expense which is to be reported as a direct expense. Recommendation: The District's capital asset accounting and reporting system be updated to reflect additions, deletions and de...

Condition: the District did not provide an updated capital asset report including additions, deletions, and depreciation expense which is to be reported as a direct expense. Recommendation: The District's capital asset accounting and reporting system be updated to reflect additions, deletions and depreciation expense on an annual basis Method of Implementaton: Capital asset records will be reviewed annually and updated to reflect all additions, deletions, and depreciation. The inventory will be reconciled to the general ledger before year-end financial reporting.

View Audit 408093

Finding 1224847 (2025-001)

Material Weakness 2025

TELLURIDE REGIONAL AIRPORT

CO

Cash Management Material Weakness Reporting

Telluride Regional Airport Authority (“TRAA”) respectfully submits the following corrective action plan for the year ended December 31, 2025. Reference Number: 2025-001 Finding: TRAA’s 2025 Single Audit brought forth finding(s) which required a corrective action letter or Plan. The following item re...

Telluride Regional Airport Authority (“TRAA”) respectfully submits the following corrective action plan for the year ended December 31, 2025. Reference Number: 2025-001 Finding: TRAA’s 2025 Single Audit brought forth finding(s) which required a corrective action letter or Plan. The following item related to the Airport’s federal grant reimbursements: - Program 20.106 revenues were underreported by $1,092,801 in 2025. This underreporting stems from expenditures being incurred in 2025 but the corresponding reimbursement request, and revenue recognition, was not recorded until 2026, partially attributed to delays in submitting reimbursement requests. Corrective Action: TRAA agrees that the finding is correct. Moving forward, management will review grant expenditures at year-end to verify that the related revenues have been accrued, and management will work to file reimbursement requests for outstanding grants on a more timely basis. Personnel Responsible for Corrective Action: Linda Soucie, Business Manager Anticipated Completion Date: December 31, 2026 for fiscal year 2026

View Audit 408067

Finding 1224846 (2025-002)

Material Weakness 2025

Foundation for Advancing Veterans' Health Research, Inc.

TX

Reporting

Recommendation: We recommend that the Foundation get caught up and hold meetings with each Principal Investigator to answer any questions they have. The goal would be to make sure they are comfortable with the reporting that is being done timely going forward. We also recommend that policies and pro...

Recommendation: We recommend that the Foundation get caught up and hold meetings with each Principal Investigator to answer any questions they have. The goal would be to make sure they are comfortable with the reporting that is being done timely going forward. We also recommend that policies and procedures in place be reviewed and updated to ensure that this issue doesn’t recur in the future. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: 1. The ongoing comprehensive financial review of Principal Investigator (PI) projects will be completed to ensure all project accounts are current and accurate. As PI account reconciliation is completed, PIs will be offered the opportunity to meet with members of the accounting team to review their project financial statements. 2. A Project Financial Reporting policy will be developed for Board approval which will dictate the required frequency and format of financial reports, and which will comply with applicable policies. Templates for PI financial reporting will be improved to provide accurate, easily comprehensible and actionable information to enable PIs to make informed financial management decisions. The Finance Committee will monitor the timeliness of statement delivery. Name(s) of the contact person(s) for corrective action: Alicia Swan, Board Chair Completion date for corrective action plan: 12/31/26

View Audit 408062

Corrective Action Plans

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