Corrective Action Plans

Finding 1165862 (2025-002)

Material Weakness 2025

IN

Reporting Significant Deficiency Internal Control / Segregation of Duties

Finding 2025-002 – Maintenance of Effort Significant Deficiency | Federal Program: Title I, Part A (84.010) Response Steel City Academy recognizes that Maintenance of Effort (MOE) calculations rely on accurate cash-basis expense data reported on the Form 9 and that prior inaccuracies could impact ID...

Finding 2025-002 – Maintenance of Effort Significant Deficiency | Federal Program: Title I, Part A (84.010) Response Steel City Academy recognizes that Maintenance of Effort (MOE) calculations rely on accurate cash-basis expense data reported on the Form 9 and that prior inaccuracies could impact IDOE’s calculations. 24 Beginning July 1, 2025, the School implemented comprehensive corrective actions to improve Form 9 reporting, fund balance accuracy, and expense classification by consolidating all financial activity into QuickBooks Online. All expenses are now recorded by the Finance Coordinator using fund, program, and object codes aligned with IDOE reporting guidelines, ensuring Form 9 expenses are fully supported by underlying financial records. To ensure accurate fund balances, audited reconciliation worksheets are used to validate beginning-of-year balances prior to Form 9 submission. Grant expenditures and remaining balances are reviewed monthly to ensure proper classification and alignment between expenses and recognized revenue. The School has also engaged directly with the IDOE Form 9 team for technical guidance. The Executive Director provides direct oversight and performs a final review of Form 9 submissions to ensure compliance with reporting guidelines. These corrective actions are designed to ensure accurate, reliable Form 9 reporting and to prevent recurrence of this deficiency in future reporting periods.

View Audit 376759

Finding 1165860 (2025-001)

Material Weakness 2025

Neighborhood Housing Services of Chicago, Inc. and Related Entities

IL

Allowable Costs / Cost Principles Cash Management Material Weakness § 200.303

Condition: The Organization did not review period end reimbursement requests for costs that had been expended and requested in prior months. The lack of proper review resulted in the Organization charging duplicate costs of $95,294. Planned Corrective Action: The CFO maintains a payout tracker which...

Condition: The Organization did not review period end reimbursement requests for costs that had been expended and requested in prior months. The lack of proper review resulted in the Organization charging duplicate costs of $95,294. Planned Corrective Action: The CFO maintains a payout tracker which is updated every time a vendor payout is made and tracks that payment to the reimbursement request and the final payment by the pass-through agency. This process ensures that a payout is not included in a payout request multiple times. The Staff Accountant also maintains a tracker of all reimbursement requests to track with the program budgets and for inclusion in the MIP accounting system. In addition, new personnel are involved in the process with a more formal approval and authorization process implemented. The Organization’s staff has communicated these duplicate requests to the appropriate personnel at the granting agency and are coordinating the repayment of the excess funds as determined by the granting agency. Contact person responsible for corrective action: Tom Sakos, Chief Financial Officer, and Jenny Cuitiva, Accounting Manager Anticipated Completion Date: May 1, 2025 for implementing controls and November 30, 2025 for communicating with the granting agency.

View Audit 376751

Finding 1165846 (2025-001)

Material Weakness 2025

YWCA Evanston/north Shore

IL

Cash Management Reporting

Condition: YWCA Evanston/North Shore did not submit its fiscal year 2024 Data Collection Form and single audit reporting package to the Federal Audit Clearinghouse within the earlier of nine months following its fiscal year end, or 30 days after receipt of the auditors' report. Corrective Action Tak...

Condition: YWCA Evanston/North Shore did not submit its fiscal year 2024 Data Collection Form and single audit reporting package to the Federal Audit Clearinghouse within the earlier of nine months following its fiscal year end, or 30 days after receipt of the auditors' report. Corrective Action Taken or Planned: Management concurs and plans to submit the June 30, 2024 data collection form and single audit reporting package on or before December 31, 2025. Anticipated Date of Completion: December 31, 2025 Name of Contact Person: Laura Moorehead, Vice President of Finance and Operations Management Response: Management concurs with the finding.

View Audit 376711

Finding 1165832 (2025-003)

Material Weakness 2025

Independent School District No. 361

MN

Allowable Costs / Cost Principles Cash Management Reporting

Recommendation: We recommend the District have someone reviewing all Clics reports before they are submitted. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The District will implement policies to ensure the Clics...

Recommendation: We recommend the District have someone reviewing all Clics reports before they are submitted. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The District will implement policies to ensure the Clics reports are reviewed before submission. Name of the contact person responsible for corrective action: Lauren Syrup, Business Manager Planned completion date for corrective action plan: June 30, 2026

View Audit 376704

Finding 1165829 (2025-001)

Material Weakness 2025

Loyola Marymount University

CA

Reporting Student Financial Aid

2025-001 - Non-Compliance with Timely Student Enrollment Change Submissions to the National Student Loan Data System (NSLDS) Grantor: U.S. Department of Education Cluster Name: Student Financial Assistance Cluster Award Name: Federal Direct Loan Program Award Year: 6/1/2024- 5/31/2025 Award Number: ...

2025-001 - Non-Compliance with Timely Student Enrollment Change Submissions to the National Student Loan Data System (NSLDS) Grantor: U.S. Department of Education Cluster Name: Student Financial Assistance Cluster Award Name: Federal Direct Loan Program Award Year: 6/1/2024- 5/31/2025 Award Number: Not applicable Assistance Listing Number: 84.268 Corrective Action Plan The University acknowledges that the graduation reporting date was not adjusted to reflect changes in the academic calendar. This resulted in a compressed timeframe for both the NSC and the University to process and correct student records as needed. To address this, the University will revise its reporting schedule beginning with the Fall 2025 graduation date to ensure that status changes related to graduation are reported promptly. This adjustment will allow the NSC to verify data with the NSLDS and provide the University sufficient time to resolve any discrepancies. Additionally, the University will explore further options to enhance the timeliness of reporting student status changes and will strengthen its reconciliation process to ensure accurate and efficient communication of all status updates. Contact Person: Aida Shadfan, Vice President of Finance and University Controller Aida.shadfan@lmu.edu

View Audit 376689

Finding 1165814 (2025-002)

Material Weakness 2025

Ocean View School District

CA

Subrecipient Monitoring Allowable Costs / Cost Principles Eligibility

Immediate Corrective Action Taken: • Fiscal Services reviewed the Title I allocations to confirm that no improper fiscal impact occurred as a result of the reporting discrepancy. • The district documented the finding and communicated the error internally to Fiscal Services and Educational Services s...

Immediate Corrective Action Taken: • Fiscal Services reviewed the Title I allocations to confirm that no improper fiscal impact occurred as a result of the reporting discrepancy. • The district documented the finding and communicated the error internally to Fiscal Services and Educational Services staff. • Roles and responsibilities for ConApp enrollment data review have been clarified to prevent future manual errors. Preventive Measures to Avoid Recurrence: 1. Dual Verification of ConApp Enrollment Data • The Accountant in Fiscal Services will now compare and confirm the ConApp enrollment counts to certified CALPADS Fall 1 data before submission and certification. • A second-level review by the Coordinator of Teaching and Learning Department certifying the ConApp. 2. Documentation & Recordkeeping • Any adjustments to pre-populated enrollment numbers will require written justification and supporting documentation (e.g., CALPADS reports, email confirmations). Responsible Parties: • Fiscal Services Accountant – Responsible for matching the ConApp enrollment counts to CALPADS Fall 1 and maintaining backup documentation. • Coordinator, Teaching and Learning Department – Support in verifying site-level data. Completion Date: • Immediate clarification and assignment of review responsibilities were completed in October 2025.

View Audit 376684

Finding 1165812 (2025-001)

Material Weakness 2025

Mount David Housing, Inc.

ME

Reporting Internal Control / Segregation of Duties

1. Finding 2025-001: a. We concur that material audit adjustments related to accounts receivable, revenue, prepaid assets, fixed assets, accounts payable and other current liabilities, and expenses were needed in order to present the financial statements in accordance with generally accepted account...

1. Finding 2025-001: a. We concur that material audit adjustments related to accounts receivable, revenue, prepaid assets, fixed assets, accounts payable and other current liabilities, and expenses were needed in order to present the financial statements in accordance with generally accepted accounting principles, and are in agreement with the recommendations to implement staff training on monthly and annual procedures over financial close and reporting. b. Action(s) Taken on the Finding: We have posted the adjustments recommended by the auditors. Management will conduct staff training on monthly and annual procedures over financial close and reporting by December 31, 2025.

View Audit 376677

Finding 1165757 (2025-001)

Material Weakness 2025

Cadillac Area Public Schools

MI

Subrecipient Monitoring Cash Management Reporting

This finding is due to the District not having the proper controls in place to prevent, detect, or correct an incorrect monthly meal claim. The month that had the incorrect meal claim used incomplete Z-Reports which resulted in the meal claim being submitted for less than it should have been. Not al...

This finding is due to the District not having the proper controls in place to prevent, detect, or correct an incorrect monthly meal claim. The month that had the incorrect meal claim used incomplete Z-Reports which resulted in the meal claim being submitted for less than it should have been. Not all dining locations had their final meal counts completed before the meal claim was submitted. The persons responsible for the corrective action are Aaron Burnett, the Food Service Director and Emily Kearney, the Business Manager. The anticipated completion date of the corrective action plan is immediate. The plan for monitoring adherence is the Food Service Director will ensure that all meal counts are final on the Z-Report before the claim requests are made.

View Audit 376550

Finding 1165691 (2025-004)

Material Weakness 2025

Priority Trust Credit Union

TX

Reporting Significant Deficiency

Management agrees with the finding and will establish the recommended procedure outlined in the Schedule of Findings and Questioned Costs.

View Audit 376420

Finding 1165679 (2025-001)

Material Weakness 2025

Oakridge Public Schools

MI

Subrecipient Monitoring Reporting

Finding 2025-001: Education Stabilization Fund Special Reporting Procedures U.S. Department of Education Type of Finding: Control Pass-through agency: Michigan Department of Education Assistance Listing Numbers: 84.425U and 84.425V Award numbers: COVID-19 213713 2122 and COVID-19 221037 2324 Award y...

Finding 2025-001: Education Stabilization Fund Special Reporting Procedures U.S. Department of Education Type of Finding: Control Pass-through agency: Michigan Department of Education Assistance Listing Numbers: 84.425U and 84.425V Award numbers: COVID-19 213713 2122 and COVID-19 221037 2324 Award year end: September 30, 2024 Recommendation: The School District should create a process for gathering all requirements for special reporting under Uniform Guidance and the School District should prepare and submit the necessary special reports. Action taken: The Finance Director has created a process for gathering all requirements for special reporting under Uniform Guidance and for preparing and submitting the necessary special reports. Responsible Person and Anticipated Completion Date: Finance Director, January 2026. If the Michigan Department of Education has questions regarding this plan, please call Todd Hronek at (231) 788-7109.

View Audit 376383

Finding 1165677 (2025-002)

Material Weakness 2025

The School District of Kansas City, Missouri

MO

Subrecipient Monitoring Special Tests & Provisions Reporting

Identifying Number: 2025-002 Audit Finding: Per the U.S. Department of Agriculture at 7 CFR 226.16(d)(4) and the Missouri Department of Health and Human Services, sponsoring organizations must conduct three monitoring review visits for each of their facilities and no more than six months may lapse b...

Identifying Number: 2025-002 Audit Finding: Per the U.S. Department of Agriculture at 7 CFR 226.16(d)(4) and the Missouri Department of Health and Human Services, sponsoring organizations must conduct three monitoring review visits for each of their facilities and no more than six months may lapse between monitoring visits for CACFP compliance. At least two of the three reviews must be unannounced. If a violation occurs during the visit, the sponsor must follow up with the facilities noted as having problems, and the follow-up visit must be conducted no less than one week after the initial finding, and the visit must be documented. Kansas City Public Schools did not perform the required three site visits per year within a six-month timeframe for five of the samples, and the supporting documentation provided for all six samples did not contain the total of participants in attendance during the meal service and the total number of meals claimed during the five consecutive days. Corrective Actions Taken or Planned: The District agrees with the finding. The District will implement and strengthen the following internal controls to ensure that all three required visits are accurately documented using the DHSS Site Visit Report by June 30, 2026: a. Training: Child Nutrition Services (CNS) will review and provide training to all supervisors and department leaders on DHSS Sponsor Review requirements. Person responsible for implementation: Katlyn Lanoue, Officer of Nutrition & Compliance b. SOP: CNS will utilize a central repository [CNSReporting@kcpublicschools.org] to streamline and time-stamp audit submissions. The original copy will be stored in a designated binder, and a digital copy will be retained in the CNS shared drive. Person responsible for implementation: Katlyn Lanoue, Officer of Nutrition & Compliance c. Monitoring: C CNS leaders, as designated by the Officer of Nutrition & Compliance, will conduct Supper audits during SY 2025–2026 in September, December, and March. Snack audits will be conducted in November, February, and April. Additional audits will be scheduled as necessary to ensure compliance with program requirements. Person responsible for implementation: Katlyn Lanoue, Officer of Nutrition & Compliance d. Reporting: As part of progress monitoring, at the end of each monitoring month, each applicable site will be reviewed to confirm completion & accuracy of a Sponsor Review. Person responsible for implementation: Katlyn Lanoue, Officer of Nutrition & Compliance

View Audit 376372

Finding 1165676 (2025-003)

Material Weakness 2025

The School District of Kansas City, Missouri

MO

Allowable Costs / Cost Principles Reporting § 200.431

Identifying Number: 2005-003 Audit Finding: The District must demonstrate that costs incurred are allowable and internal controls are in place to record hours worked and required educational credentials for staffing levels. Hours per timesheet did not reconcile to hours per payroll system for servic...

Identifying Number: 2005-003 Audit Finding: The District must demonstrate that costs incurred are allowable and internal controls are in place to record hours worked and required educational credentials for staffing levels. Hours per timesheet did not reconcile to hours per payroll system for services rendered for four samples and one sample did not hold the required educator credentials for their staffing level. Corrective Actions Taken or Planned (Timesheets): The District agrees with the finding. The District will implement and strengthen the following internal controls to ensure that hours paid agree with time reported by June 30, 2026. a. Training – The District has fully implemented an electronic time keeping system for hourly employees. Training has been provided to all hourly staff, and supervisors responsible to review and approve time reported. Person responsible for implementation: Erin Thompson, Chief Finance Officer b. SOP: Business & Finance will continue training of employees and supervisors who review and approve time worked. Person responsible for implementation: Erin Thompson, Chief Finance Officer c. MonitoringLeadership will periodically meet with the Department Director to verify compliance. Person responsible for implementation: Dr. Latanya Franklin Chief Academic & Accountability Officer d. Reporting: On a district-wide basis, the Payroll Department will provide to management when adherence to procedures is not followed. Person responsible for implementation: Erin Thompson, Chief Finance Officer Corrective Actions Taken or Planned (Credentials): The District agrees with the funding. The District will implement and strengthen the following internal controls to ensure staff have the required educational credentials. a. SOP: Human Resources maintain a central repository documenting certification-related notifications Person responsible for implementation: Micah Enders, Executive Director Human Recourses b. Monitoring: On a quarterly basis, reviews will be conducted to track and update certification status. Person responsible for implementation: Micah Enders, Executive Director Human Recourses c. Reporting: As part of the quarterly monitoring, a quarterly compliance report will be submitted to management. Person responsible for implementation: Micah Enders, Executive Director Human Recourses

View Audit 376372

Finding 1165674 (2025-001)

Material Weakness 2025

County of Pittsylvania, Virginia

VA

Eligibility Reporting

Assign supervisors responsibility for ,specific program related timeliness and compliance reports to improve accountability and avoid duplicative monitoring. Require supervisors to conduct and document monthly review of assigned reports and take corrective action as needed. Upon filling the vacant m...

Assign supervisors responsibility for ,specific program related timeliness and compliance reports to improve accountability and avoid duplicative monitoring. Require supervisors to conduct and document monthly review of assigned reports and take corrective action as needed. Upon filling the vacant manager position, require agency-wide review of supervisory reports. Incorporate handson exposure to Medical Assistance screens in VACMS during SNAP processing for new staff. Reinforce expectations for simultaneous processing of SNAP and Medical Assistance combination cases.

View Audit 376358

Finding 1165669 (2025-002)

Material Weakness 2025

Compass Rose Foundation, Inc.

FL

Student Financial Aid Reporting

FINDING 2025-002: LATE RETURN OF TITLE IV FUNDS We concur with the finding and will implement procedures to ensure that, in the future, Title IV refunds are made in accordance with the federal regulations. The institution has implemented the following corrective measures: • A strengthened reconcilia...

FINDING 2025-002: LATE RETURN OF TITLE IV FUNDS We concur with the finding and will implement procedures to ensure that, in the future, Title IV refunds are made in accordance with the federal regulations. The institution has implemented the following corrective measures: • A strengthened reconciliation process has been established between the Student Accounts, Financial Services, and the Registrar’s departments. This process ensures that student enrollment changes are communicated in real time and that Title IV funds are returned promptly upon the institution’s determination of a withdrawal or cancellation. • Formalized timelines and internal monitoring controls have been created to ensure returns are completed within the regulatory timeframes. • Staff cross-training has been implemented to minimize the impact of personnel changes on the execution of Title IV responsibilities. • Periodic reviews will be conducted each term to verify timely processing of R2T4 calculations and returns.

View Audit 376334

Finding 1165631 (2025-003)

Material Weakness 2025

School District of Auburndale

WI

Internal Control / Segregation of Duties Cash Management HUD Housing Programs

Child Nutrition Cluster – Assistance Listing No. 10.553 and 10.555 Recommendation: The auditors recommend that the District review its internal controls and implement a procedure to ensure all reports required under the grant have a designated reviewer that is different from the individual responsib...

Child Nutrition Cluster – Assistance Listing No. 10.553 and 10.555 Recommendation: The auditors recommend that the District review its internal controls and implement a procedure to ensure all reports required under the grant have a designated reviewer that is different from the individual responsible for preparing, even when there are gaps of coverage in preparer and reviewer positions, and that the review and approval happens prior to submitting the reports to the granting agency. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The District acknowledges the oversight in the separation of duties for preparation and reviewing of reports. Corrective measures have been implemented to require assignment of a preparer different from the approver before finalizing the report. The procedures for submitting monthly claims have been updated to include submitting the report to the Finance Director for review and approval prior to submission. The Finance Director has added a monthly calendar reminder to review claim submission reports as part of the internal control process. Name(s) of the contact person(s) responsible for corrective action: Steven Van Wyhe Planned completion date for corrective action plan: Immediately

View Audit 376301

Finding 1165628 (2025-001)

Material Weakness 2025

Mesick Consolidated Schools

MI

Subrecipient Monitoring Cash Management Reporting

This finding is due to the District not having the proper controls in place to prevent, detect, or correct an incorrect monthly meal claim. The month that had the incorrect meal claim had an incorrect subtotal of meals disbursed which resulted in the meal claim being submitted for less than it shoul...

This finding is due to the District not having the proper controls in place to prevent, detect, or correct an incorrect monthly meal claim. The month that had the incorrect meal claim had an incorrect subtotal of meals disbursed which resulted in the meal claim being submitted for less than it should have been. There is a chance that the claim was done for the correct amount, but the supporting documentation shows that the District claimed less than they were allowed to. The District is going to ensure that all totals are subtotaled correctly in the future and double checked before the claim request is made. The persons responsible for the corrective action are Jack Ledford, the Food Service Director and Katrina Bontekoe, the Business Manager. The anticipated completion date of the corrective action plan is immediate. The plan for monitoring adherence is the Food Service Director will ensure that funds requested for meal reimbursements agree to total meals served.

View Audit 376300

Finding 1165619 (2025-001)

Material Weakness 2025

Medical Rev. of N.c., Inc. Dba the Carolinas Ctr for Med. Excellence

NC

Reporting

Corrective Action Plan Finding: Grant Form Federal Financial Form Timeliness and Review Process Corrective Action: Constellation Quality Health is strengthening its process for preparing and submitting the annual Federal Financial Report (FFR) to ensure timely submission and appropriate review prior...

Corrective Action Plan Finding: Grant Form Federal Financial Form Timeliness and Review Process Corrective Action: Constellation Quality Health is strengthening its process for preparing and submitting the annual Federal Financial Report (FFR) to ensure timely submission and appropriate review prior to filing. A formal review procedure has been established requiring that the FFR be prepared by the Director of Finance and reviewed by the Chief Financial Officer prior to submission. The reviewer will verify the accuracy of reported expenditures, confirm reconciliation to the general ledger, and document approval through a signed review checklist. Additionally, a grant reporting calendar will be maintained to track submission deadlines. The calendar includes reminders at least 20 days prior to each due date to prevent delays in filing, as well as reminders to verify post-filing approval by the agency. This corrective action will be implemented no later than November 5, 2025. Cheryl Powell, Director of Finance Kenneth McCosh, Chief Financial Officer

View Audit 376251

Finding 1165457 (2025-001)

Material Weakness 2025

United Way of Greater Kansas City, Inc.

MO

Reporting

Contact Person: Cheryl Adler View of Responsible Officials and Planned Corrective Action: Management is implementing the following corrective actions to address the finding: 1. Kick-Off Meetings: For all new funding agreements, management will hold a kick-off meeting with key management and program ...

Contact Person: Cheryl Adler View of Responsible Officials and Planned Corrective Action: Management is implementing the following corrective actions to address the finding: 1. Kick-Off Meetings: For all new funding agreements, management will hold a kick-off meeting with key management and program personnel to review the grant agreement and organizational obligations, including reporting requirements. 2. Designation of Backup Personnel: A secondary individual will be assigned as backup for reporting responsibilities to ensure continuity when the primary individual is unavailable. 3. Reporting Calendar and Alerts: A shared reporting calendar with automated reminders has been established to notify responsible staff of upcoming deadlines at least two weeks in advance. 4. Cross-Training: Key program and finance team members will be cross-trained on the reporting process to ensure familiarity and readiness to step in if needed. Anticipated Completion Date: December 31, 2025.

View Audit 376169

Finding 1165456 (2025-001)

Material Weakness 2025

Aldine Independent School District

TX

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

Corrective Action Plan for Federal Award Audit Finding 2025-001 Finding Title: Allowable Costs/Cost Principles – Improper expenditure recognition Federal Program: Title II, Part A, Teacher & Principal Training and Recruiting Assistant Listing Number: 84.367A Federal Agency Name: U.S. Department of E...

Corrective Action Plan for Federal Award Audit Finding 2025-001 Finding Title: Allowable Costs/Cost Principles – Improper expenditure recognition Federal Program: Title II, Part A, Teacher & Principal Training and Recruiting Assistant Listing Number: 84.367A Federal Agency Name: U.S. Department of Education Passed-Through Agency Name: Texas Department of Education Type of Finding: Significant Deficiency in Internal Control over Compliance Description of Corrective Action The District acknowledges the internal control system did not timely detect the improper recognition of expenditures in the incorrect fiscal period. It is important to emphasize that the expenditures identified were ultimately removed from the current year activity and were excluded from the year-end reimbursement request. The District commits to strengthening its year-end closing procedures and providing comprehensive training to address the noted deficiency in monitoring and review. The following actions will be taken: Mandatory Staff Training on Expenditure Cut-off and Accruals The District will develop and implement mandatory, targeted training for all personnel responsible for processing, recording, reconciling, and reviewing federal grant expenditures, with a specific focus on year-end cut-off procedures and proper expense recognition (accruals versus prepaid expenses). Implementation of Formal Grant Expenditure Cut-off Review Procedure A formalized closing procedure will be implemented for all federal awards, ensuring a mandatory, documented review of expenditures and payables near the fiscal year-end. Persons Responsible Timothy Momanyi, Chief Financial Officer Thania Gonzalez, Assistant Superintendent of Business and Finance Anticipated Completion Date The initial staff training will occur by May 31, 2026. The full implementation of the new procedures, with documented adherence by all responsible staff, will be complete by June 30, 2026, ensuring the new controls are fully operational before the close of the 2025-2026 fiscal year.

View Audit 376161

Finding 1165450 (2025-001)

Material Weakness 2025

Cccs Farm Labor Housing Corporation

CO

Reporting Significant Deficiency Matching / Level of Effort / Earmarking

We concur with the observations and recommendations as placed forth by our auditors – KCM. In addition to staff turnover, there was also USDA Account Executive turnover. We had reached out to alert the new Account Executive, Marijane Gunter, we would be delayed and are currently working on getting t...

We concur with the observations and recommendations as placed forth by our auditors – KCM. In addition to staff turnover, there was also USDA Account Executive turnover. We had reached out to alert the new Account Executive, Marijane Gunter, we would be delayed and are currently working on getting the appropriate forms filed.

View Audit 376154

Finding 1165448 (2025-002)

Material Weakness 2025

Westmoreland County Community College

PA

Student Financial Aid Subrecipient Monitoring Cash Management

Finding 2025-002: Student Financial Aid Cluster – Reporting View of Responsible Officials and Planned Corrective Action: Root Cause Errors occurred because the data file transmitted from Anthology to COD did not consistently include the correct student information. It is not yet clear whether the is...

Finding 2025-002: Student Financial Aid Cluster – Reporting View of Responsible Officials and Planned Corrective Action: Root Cause Errors occurred because the data file transmitted from Anthology to COD did not consistently include the correct student information. It is not yet clear whether the issue arises from configuration problems, system design limitations, or both. Planned Corrective Action and Responsible Officials • Procedure review and update. The Financial Aid Office will review and revise procedures to ensure accurate, timely, and complete reporting to COD, including pre-submission and post-submission checks. • System-to-COD file analysis with Anthology. In partnership with Anthology's support and managed services teams, the College will: o o o Analyze how COD reporting files are created within Anthology. Identify why certain student data elements are not being transmitted correctly. Implement configuration changes or other system-level fixes to ensure accurate and complete reporting. • Enhanced manual validation until issues are resolved. If the file creation process is determined to be working "as designed" but still does not meet regulatory expectations, Financial Aid staff will perform manual review and correction of COD files prior to submission, and will monitor error and rejection reports from COD for follow-up. As with Finding 2025-001, the Vice President for Student Affairs and the Director of Financial Aid share responsibility for ensuring these corrective actions are implemented and sustained commencing on the date set forth above.

View Audit 376153

Finding 1165439 (2025-003)

Material Weakness 2025

Northeast Iowa Workforce Development Board

IA

Internal Control / Segregation of Duties Reporting Significant Deficiency

Management will work with the fiscal gaent ot create and maintain a separate general ledger.

View Audit 376151

Finding 1165434 (2025-001)

Material Weakness 2025

Coast Community College District

CA

Student Financial Aid Material Weakness Reporting

Views of Responsible Officials and Corrective Action Plan The District submits the file with the required enrollment information to the National Student Clearinghouse (NSC) two weeks after the start of each term and subsequently on a monthly basis. Part of the reporting process includes running SFRT...

Views of Responsible Officials and Corrective Action Plan The District submits the file with the required enrollment information to the National Student Clearinghouse (NSC) two weeks after the start of each term and subsequently on a monthly basis. Part of the reporting process includes running SFRTMST, a baseline process in Ellucian Banner, the District’s Enterprise Resource Planning system, to calculate or update a student’s enrollment time status, which is the date when a change occurred in the enrollment of a student due to either registering in a class(es) or withdrawing from a class(es). The enrollment time status date is included in the enrollment file submitted to NSC. NSC then submits the enrollment information to the National Student Loan Data System (NSLDS). The discrepancy identified for the nine students was between a withdrawal date in Banner versus the enrollment time status date reported to NSC/NSLDS, which was the Banner calculated date. Because of the timing of when the SFRTMST process was ran, some students’ enrollment time status date did not match the registration activity date/enrollment effective date in Banner. After conducting research using the Ellucian Customer Center, the District identified a resolution to address this issue and has already implemented it for Fall 2025. To ensure that the students’ enrollment time status date reported to NSC/NSLDS matches the students’ effective date of their registration activity in Banner, the District activated the Calculate Time Status (Indicator) in SOATERM, a Banner setup, for Fall 2025 and will do so for all terms moving forward. Per Ellucian, when this indicator is set to “Y” a dynamic time status calculation will take place. The District verified that this process works. The issue has been resolved. In addition, the dates for the nine students were corrected in NSLDS. It is important to note that this issue has had no financial impact on the District. The students have been disbursed the correct amount of financial aid. The calculation of financial aid to be disbursed is not based on the enrollment dates reported to NSC and NSLDS.

View Audit 376138

Finding 1165428 (2025-002)

Material Weakness 2025

Detroit Public Schools Community District

MI

Reporting Subrecipient Monitoring Cash Management § 200.303

Condition: The School District's controls did not prevent, or detect and correct in a timely manner, duplicative costs charged to the grant. Planned Corrective Action: The District annually processes thousands of supplemental payments for Home Visits. The audit found only 5 individual payments were ...

Condition: The School District's controls did not prevent, or detect and correct in a timely manner, duplicative costs charged to the grant. Planned Corrective Action: The District annually processes thousands of supplemental payments for Home Visits. The audit found only 5 individual payments were duplicated. The duplication was caused by human error during an internal staff transition within the Family and Community Engagement (FACE) department. This led the new manager to incorrectly report employee home visit logs twice. The FACE team will add internal controls during staff transitions to ensure documentation is not duplicated. Contact person responsible for corrective action: Jeremy Vidito, CFO Anticipated Completion Date: January 1, 2026

View Audit 376137

Finding 1165427 (2025-001)

Material Weakness 2025

Detroit Public Schools Community District

MI

Subrecipient Monitoring Cash Management HUD Housing Programs § 200.403

Condition: Costs charged to ALN 97.036 – Disaster Grants: Public Assistance were also charged to ALN 84.425 - Education Stabilization Fund (Elementary and Secondary School Emergency Relief - "ESSER") in prior fiscal years, indicating potential duplication of expenditures across federal programs. Pla...

Condition: Costs charged to ALN 97.036 – Disaster Grants: Public Assistance were also charged to ALN 84.425 - Education Stabilization Fund (Elementary and Secondary School Emergency Relief - "ESSER") in prior fiscal years, indicating potential duplication of expenditures across federal programs. Planned Corrective Action: The District applied for reimbursement of potentially eligible COVID expenditures in 2022. Per an April 5, 2022 FEMA memo “FEMA Continues Funding to Support the Safe Operations of Schools”, school districts could apply for reimbursement for ESSER funded expenditures, and then upon approval of application shift the funds to general fund. “Schools and school districts may utilize FEMA Public Assistance to receive full reimbursement for costs for the purposes above. Schools and districts may also use Elementary and Secondary School Emergency Relief (ESSER) funding from the U.S. Department of Education as a way to provide the up-front cost for the above health and safety measures, and later seek reimbursement through the FEMA Public Assistance process. For example, a local education agency (LEA) may use ESSER funds for costs that may ultimately be covered by FEMA; however, once it receives funds from FEMA for those costs, it must reimburse the ESSER grant account.” FEMA provided District award notification for COVID testing in December 2024 and January 2025, by this time the ESSER grant had closed on September 30, 2024 and the final expenditure reports for ESSER had been submitted to MDE in November 2024. Therefore the District could not complete the allowable general fund swaps. The District notified Michigan Department of Education and Michigan State Police of the timing issue. Upon request from MI State Police, the District provided documentation that available general funds were available to conduct the swaps if the FEMA approval had been received in a timely manner. Contact person responsible for corrective action: Jeremy Vidito, CFO Anticipated Completion Date: Requested documentation was submitted to Michigan State Police on November 7, 2025

View Audit 376137

Corrective Action Plans

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