Corrective Action Plans

Finding 1181310 (2025-001)

Material Weakness 2025

Housing Authority of the City of Lafayette

LA

HUD Housing Programs Reporting

The Housing Authority of the City of Lafayette acknowledges the findings identified and is committed to implementing corrective actions to ensure full compliance with HUD regulations, 24 CFR requirements, and the Housing Authority’s Administrative Plan. The Authority has already begun implementing c...

The Housing Authority of the City of Lafayette acknowledges the findings identified and is committed to implementing corrective actions to ensure full compliance with HUD regulations, 24 CFR requirements, and the Housing Authority’s Administrative Plan. The Authority has already begun implementing corrective measures and will continue to strengthen internal controls, monitoring procedures, and staff accountability to prevent recurrence. The Housing Authority will initiate a comprehensive review of the Housing Choice Voucher waiting list to ensure compliance with federal regulations and the Administrative Plan. The following corrective actions will be implemented: • Waiting list updates conducted at least annually, with periodic interim updates as needed to ensure applicant records are accurate, current, and properly documented in accordance with Administrative Plan. • Applicants who fail to respond to update requests will be removed in accordance with the Administrative Plan, and all actions will be fully documented. • Written standard operating procedures are done in accordance with Administrative Plan, to ensure consistent management, updating, and documentation of the waiting list. • Supervisory quality control reviews are performed quarterly to ensure compliance according to our SEMAP. • Staff training is provided and will continue periodically to reinforce regulatory and policy requirements.

View Audit 392538

Finding 1181306 (2025-012)

Material Weakness 2025

Commonwealth of Pennsylvania

PA

Subrecipient Monitoring Reporting

BAFM has collaborated with the U.S. General Services Administration (GSA) and the Commonwealth of Pennsylvania’s Office of Administration, Office of Information Technology (OA-IT) to develop a new API solution to centrally file FFATA subrecipient reports following the federal system change implement...

BAFM has collaborated with the U.S. General Services Administration (GSA) and the Commonwealth of Pennsylvania’s Office of Administration, Office of Information Technology (OA-IT) to develop a new API solution to centrally file FFATA subrecipient reports following the federal system change implemented in March 2025. As of December 2025, BAFM restored the monthly centralized FFATA filing process. BAFM currently performs review and validation of all monthly records, and OA-IT submits the reports on BAFM’s behalf. Within six months (by June 2026), BAFM will work with OA-IT to finalize and refine the API process to enable BAFM to independently submit reports without OA-IT assistance. Due to federal system limitations on daily API request volumes, reconciliation of statewide records not filed during the transition period has been challenging. Within six months (by June 2026), BAFM will evaluate available data retrieval options to complete reconciliation of records not filed during the changeover period. Any identified missed filings will be submitted as part of this reconciliation process. Anticipated Completion Date: 06/30/2026 Contact Names: Jamie Jerosky, BAFM Assistant Director; Matt Stubb, BAFM Integrated Financial Service Manager

View Audit 392533

Finding 1181299 (2025-014)

Material Weakness 2025

Commonwealth of Pennsylvania

PA

Subrecipient Monitoring Reporting Procurement, Suspension & Debarment § 200.208 § 200.332 § 200.339 § 200.505 § 200.512

PDA: PDA is creating mechanisms to fulfill the requirements for pass-through entities within 4 to 6 months after FAC acceptance date of the audit, which include: 1. Evaluation of single audit report submissions received from BAFM to determine program purpose acceptability by verifying, at a minimum,...

PDA: PDA is creating mechanisms to fulfill the requirements for pass-through entities within 4 to 6 months after FAC acceptance date of the audit, which include: 1. Evaluation of single audit report submissions received from BAFM to determine program purpose acceptability by verifying, at a minimum, that all agency-funded programs are properly included on the applicable financial schedules; that findings affecting the agency contain sufficient information to facilitate a management decision; and that the subrecipient has submitted an adequate corrective action plan. 2. Issuance of management decisions relative to audit findings and crosscutting findings assigned to the agency for resolution, as required by 2 CFR §200.521. 3. To impose or coordinate the imposition of remedial action in accordance with 2 CFR Part 200.339 and Management Directive 325.08 Amended, Remedies for Recipient Noncompliance with Audit Requirements, when subrecipients fail to comply with the provisions of Subpart F. PDA has developed a SEFA reconciliation process that will ensure that the SEFA is accurate, allowing for major programs to be properly identified and subjected to audit. PDA is developing a procedure for all programs to follow for any entity that is in non-compliance with the audit requirements and is failing to comply with the provisions of Subpart F. Anticipated Completion Date: 06/30/2026 Contact Name: Nichole Nedinsky, Fiscal Management Specialist, PDA Audit Coordinator PDOA: 1. Strengthen written policies and procedures governing subrecipient monitoring and audit resolution. 2. Update the audit tracker to proactively ensure the six-month management decision due date is met. 3. Implement segregation of duties between reconciliation review and management decision issuance. 4. PDOA will develop and utilize a standardized SEFA Review Checklist. 5. Conduct annual Uniform Guidance training for fiscal staff. Anticipated Completion Date: 06/30/2026 Contact Names: Jason Kavulich, Secretary of Aging; Jennifer Beck, Fiscal Management Specialist & PDOA Audit Liaison PDE: Implemented 2/17/26: Audit Coordinator verifies finding status of all single audit packages uploaded to the PDE single audit SharePoint site. Implemented 7/1/25: PDE audit section has begun to enforce timely audit submission by using remedial action within its authority as granted by federal guidelines. Implemented 7/1/25: PDE has expanded the resources available through the use of the compliance office for audit finding review and resolution in an effort to resolve all audit findings timely. Anticipated Completion Date: Completed Contact Name: Clayton P. Carroll, II, Audit Coordinator PENNVEST: PENNVEST will maintain a comprehensive tracking list that contains all equivalency projects that have disbursed any funds during the audit period. All those projects will be reviewed and reconciled to ensure that the subrecipient complies with Federal statutes, regulations, and the terms and conditions of the subaward, including the timely submission of the single audit to the FAC. Once received, PENNVEST will reconcile the SEFA to ensure the information is accurate. PENNVEST will complete the reconciliation within six months of the FAC’s acceptance of the audit report and respond to the subrecipient with any adverse findings. Anticipated Completion Date: Completed Contact Names: Steven Anspach, Dep. Exec. Dir.; Heather Brookmyer, Loan Service Officer; Robert Boos, Exec. Dir.

View Audit 392533

Finding 1181296 (2025-005)

Material Weakness 2025

Commonwealth of Pennsylvania

PA

Reporting Program Income § 200.303 § 200.307

PDOA: 1. Strengthen internal controls over program income. 2. Recalculate FFY 2024 program income balances and submit amended report. 3. Implement a tracking log to actively monitor program income reporting levels. 4. Improve reporting of cost sharing and program income to ensure it is in compliance...

PDOA: 1. Strengthen internal controls over program income. 2. Recalculate FFY 2024 program income balances and submit amended report. 3. Implement a tracking log to actively monitor program income reporting levels. 4. Improve reporting of cost sharing and program income to ensure it is in compliance with federal regulations. 5. Provide training to PDA and AAA fiscal staff on program income. Anticipated Completion Date: 06/30/2026 Contact Names: Jason Kavulich, Secretary of Aging ; Jennifer Beck, Fiscal Management Specialist & PDOA Audit Liaison OB-OCO: As of 02/25/2026, the procedures for preparing the Federal Financial Report (SF‑425) were updated to include additional controls for reviewing and certifying the report prior to submission. These updates require the Pennsylvania Department of Aging to verify all program income forms to ensure they are relevant and applicable to the reporting period covered by the SF‑425. The updated procedures also require PDOA to conduct a full review of the SF‑425 and certify its accuracy via email before the Bureau of Accounting and Financial Management completes the submission in PMS. By June 30, 2026, OCO will further enhance the accuracy of financial reporting on the SF‑425 by updating the Title III working papers to incorporate linked data sources and formulas, reducing reliance on manually entered figures. Anticipated Completion Date: 06/30/2026 Contact Names: Jamie Jerosky, BAFM Assist. Director; Matt Stubb, BAFM Integrated Financial Service Mgr.; Carol Waite, BAFM Mgr.

View Audit 392533

Finding 1181295 (2025-004)

Material Weakness 2025

Commonwealth of Pennsylvania

PA

Matching / Level of Effort / Earmarking Reporting

1. Recalculate the three-year MOE average and FFY 2024 qualifying state expenditures and reconcile to the Commonwealth’s accounting records. 2. Submit a corrected MOE Certification to HHS/ACL and formally notify the federal awarding agency of the error. 3. Revisit the existing MOE procedure that def...

1. Recalculate the three-year MOE average and FFY 2024 qualifying state expenditures and reconcile to the Commonwealth’s accounting records. 2. Submit a corrected MOE Certification to HHS/ACL and formally notify the federal awarding agency of the error. 3. Revisit the existing MOE procedure that defines qualifying expenditures, calculation methodology, documentation standards, and retention requirements. 4. Review current multi-level review process. 5. Implement quarterly MOE monitoring and variance analysis comparing projected state expenditures to required MOE levels, with reporting to leadership. 6. Provide mandatory training to fiscal staff on MOE requirements and 45 CFR §1321.9(c)(2)(vi). Anticipated Completion Date: 06/30/2026 Contact Names: Jason Kavulich, Secretary of Aging ; Jennifer Beck, Fiscal Management Specialist & PDOA Audit Liaison

View Audit 392533

Finding 1181238 (2025-001)

Material Weakness 2025

Mercy Health

MO

Student Financial Aid Reporting Special Tests & Provisions

Finding 2025-001 N. Special Tests and Provisions – N6. NSLDS Reporting Identification of the federal program: Federal Grantor: United States Department of Education Federal Cluster: Student Financial Assistance (SFA) Cluster Assistance Listing Nos.: 84.063, Federal Pell Grant Program, and 84.268, Fe...

Finding 2025-001 N. Special Tests and Provisions – N6. NSLDS Reporting Identification of the federal program: Federal Grantor: United States Department of Education Federal Cluster: Student Financial Assistance (SFA) Cluster Assistance Listing Nos.: 84.063, Federal Pell Grant Program, and 84.268, Federal Direct Student Loans Award Period of Performance: July 1, 2024–June 30, 2025 Condition: Internal controls over the review and approval of the enrollment report sent to the third-party servicer, National Student Clearinghouse (NSC), were not adequately designed or operating effectively as follows: • A record count reconciliation between the enrollment report submitted to the NSC and the number of files received by the NSC, and documentation over how any rejected records were addressed, is not performed as part of the internal control. • Details of the validation of student information included in the enrollment report for accuracy prior to being sent to the NSC were not retained by Mercy Health. • Details of the NSC error report and corrections made were not retained by Mercy Health. Views of Responsible Officials and Planned Corrective Actions: 1. Corrective Action: Record Count Reconciliation & Rejected Records • Implement a mandatory, documented reconciliation process for every submission. 2. Corrective Action: Pre-Submission Validation Documentation • Formalize the validation process and retain evidence of accuracy checks. 3. Corrective Action: Retention of NSC Error Reports & Corrections • Establish a procedure for downloading and retaining error reports. By implementing these actions, Southeast Missouri Hospital College of Nursing & Health Sciences will ensure compliance with federal regulations regarding the accuracy and timeliness of student enrollment reporting to the NSC and NSLDS. Responsible Party: Steve Ritter, Registrar and/or Deanna Sells, Business Officer Date of Completion: Phased implementation began in January 2026 and our action plan will be fully implemented as of the March 2026 enrollment reporting process.

View Audit 392528

Finding 1180985 (2025-001)

Material Weakness 2025

Rayne Housing Authority

LA

Cash Management Procurement, Suspension & Debarment HUD Housing Programs

RAYNE HOUSING AUTHORITY 1011 The Boulevard Rayne, LA 70578 Phone No. (337) 334-3084 Fax No. (337) 334-0838 HOUSING AUTHORITY OF RAYNE, LOUISIANA CORRECTIVE ACTION PLAN YEAR ENDED SEPTEMBER 30, 2025 2025-001-CFP funds not timely advanced and spent-Cash Management Condition (a)-for the 2019 CFP, HUD r...

RAYNE HOUSING AUTHORITY 1011 The Boulevard Rayne, LA 70578 Phone No. (337) 334-3084 Fax No. (337) 334-0838 HOUSING AUTHORITY OF RAYNE, LOUISIANA CORRECTIVE ACTION PLAN YEAR ENDED SEPTEMBER 30, 2025 2025-001-CFP funds not timely advanced and spent-Cash Management Condition (a)-for the 2019 CFP, HUD recaptured $37,037, due to the obligation date being missed. (b)-for the 2021 CFP, $15,909 was recaptured, due to the obligation date being missed. (c)-for the 2020, 2022, and 2023 CFPs, HUD has suspended the drawdowns. (d)-for the 2024 and 2025 CFP grants, as of September 30, 2025, zero had been expended or advanced. HUD has also suspended drawdowns for these grants. Corrective Action Planned: I am Jill Rochon, Executive Director and Designated Person to answer this finding. I will follow the auditor’s advice. I have been in phone contact with HUD-New Orleans about this situation. Person Responsible for Corrective Action: Jill Rochon, Executive Director Telephone: (337) 334-3084 Housing Authority of Rayne Fax: (337) 334-0838 1011 The Boulevard Rayne, LA 70578 Anticipated Completion Date- September 30, 2026

View Audit 392516

Finding 1180978 (2025-002)

Material Weakness 2025

Bergen Community College

NJ

Special Tests & Provisions Student Financial Aid Reporting

Views of Responsible Officials: After consultation with the College’s Information Technology department, management determined that the file was processed and submitted on time. However, the NSLDS discrepancy resulted from a data processing issue during the March 2025 enrollment status download. Spe...

Views of Responsible Officials: After consultation with the College’s Information Technology department, management determined that the file was processed and submitted on time. However, the NSLDS discrepancy resulted from a data processing issue during the March 2025 enrollment status download. Specifically, while the NSLDS file was being generated, staff from another office were simultaneously accessing the same student records. These concurrent activities caused the affected students’ enrollment statuses to default to data from a prior download, resulting in incorrect reporting for the two records of the sixty examined. Corrective action: The College has revised its NSLDS data reporting process to prevent a recurrence of concurrent access. A static, saved population list is now used to generate NSLDS enrollment status downloads, eliminating conflicts caused by concurrent system access. This change ensures that enrollment status data is not impacted and remains consistent at the time of submission. Management believes this corrective action adequately addresses the identified issue, strengthens controls, mitigate this issue for future status change reports, and allows for accurate submission within the required 60-day timeframe.

View Audit 392509

Finding 1180959 (2025-022)

Material Weakness 2025

State of Texas C/o Comptroller of Public Accounts

TX

Subrecipient Monitoring Eligibility Internal Control / Segregation of Duties § 200.303

Corrective action plan: FDCM/OI has developed a comprehensive action plan to modernize and increase our detection of fraud in the child care program. Part of this modernization will include increased and more “real-time” monitoring of Board collection efforts. FDCM/OI is partnering with our Informat...

Corrective action plan: FDCM/OI has developed a comprehensive action plan to modernize and increase our detection of fraud in the child care program. Part of this modernization will include increased and more “real-time” monitoring of Board collection efforts. FDCM/OI is partnering with our Information, Innovation, and Insight Division (I3) to develop new dashboards and reports based upon weekly uploaded PIRTS data. This will allow FDCM/OI to generate weekly reports of Board collection letter non-compliance. If a Board fails to issue collection letters in a timely fashion, FDCM/OI will send a report to the Board Executive Director notifying them of non-compliance. Boards are also now required to have a Fraud Point of Contact (POC) that will be FDCM/OI’s direct liaison with the Board for all fraud matters. Additionally, FDCM/OI is conducting weekly PIRTS trainings throughout February for Boards. Boards have been asked to submit up to 5 fact finders who will be responsible for fraud case entry and management. The Board POC is ultimately responsible for every case. FDCM/OI is also reviewing our collection letters as a part of this process and generating prosecution referrals for cases which meet our criteria. It is our belief this will underscore the seriousness of the collection letters and increase their effectiveness. Finally, FDCM/OI will ensure that all relevant controlling documents, e.g. a new Workforce Development Letter, and all previous guidance is updated with this information. Implementation date: February 27, 2026 Responsible person: Jason Stalinsky, Division Director, Division of Fraud Deterrence and Compliance Monitoring.

View Audit 392506

Finding 1180952 (2025-009)

Material Weakness 2025

State of Texas C/o Comptroller of Public Accounts

TX

Procurement, Suspension & Debarment Subrecipient Monitoring Material Weakness § 200.303

Corrective action plan: HHSC cannot commit to the specific designation of CAPPS-Financials as the improvement solution for FFATA reporting. However, HHSC continues to be engaged in long-term planning related to improving FFATA reporting. Implementation date: September 1, 2027 Responsible person: Ari...

Corrective action plan: HHSC cannot commit to the specific designation of CAPPS-Financials as the improvement solution for FFATA reporting. However, HHSC continues to be engaged in long-term planning related to improving FFATA reporting. Implementation date: September 1, 2027 Responsible person: Ariana Torres, Deputy Director, Federal Funds

View Audit 392506

Finding 1180912 (2025-007)

Material Weakness 2025

State of Texas C/o Comptroller of Public Accounts

TX

Reporting Significant Deficiency § 200.303

Corrective action plan: HHSC implemented a final review by all agencies who receive SSBG funding and all HHSC staff. In the future, the federal funds office will coordinate efforts with the Federal Reporting personnel to ensure the amounts noted on the ACF-196 report are consistent with the amount o...

Corrective action plan: HHSC implemented a final review by all agencies who receive SSBG funding and all HHSC staff. In the future, the federal funds office will coordinate efforts with the Federal Reporting personnel to ensure the amounts noted on the ACF-196 report are consistent with the amount on the Post Expenditure Report. Implementation date: March 30, 2026 Responsible person: Racheal Kane, Director, Federal Funds Office

View Audit 392506

Finding 1180910 (2025-001)

Material Weakness 2025

State of Texas C/o Comptroller of Public Accounts

TX

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

Corrective action plan: ITS will: • Work with HR and Security to analyze and validate the size and scope of the late submission of access termination requests for separated employees. Communicate the analysis results and recommendations on or before May 1, 2026. • Work with the Information Security ...

Corrective action plan: ITS will: • Work with HR and Security to analyze and validate the size and scope of the late submission of access termination requests for separated employees. Communicate the analysis results and recommendations on or before May 1, 2026. • Work with the Information Security Office for continuation of periodic reconciliation of HR data and network accounts. Schedule for reconciliation to be established on or before May 1, 2026. • Work with Human Resources to establish a schedule of periodic reconciliation for HR data and case management application accounts. Schedule for reconciliation to be established on or before May 1, 2026. • Review existing business process for offboarding separated employees and provided recommendations to HR for training and communication for staff. Recommendations to be provided by May 1, 2026. • Determine what technology solution may be needed by August 31, 2026, with consideration of effectiveness of mitigation actions, as noted above. Implementation dates: See Corrective action plan Responsible person: Angie Lindemann, Deputy Chief Information Officer

View Audit 392506

Finding 1180909 (2025-018)

Material Weakness 2025

State of Texas C/o Comptroller of Public Accounts

TX

Reporting Internal Control / Segregation of Duties Subrecipient Monitoring § 200.303

Corrective action plan: Program staff will ensure that a formal review by the Team Lead and the Manager of Fiscal and Reporting is completed prior to submission. The Team Lead will initiate the process by obtaining the obligation amount from the LIHEAP Contract Specialist and entering the amount int...

Corrective action plan: Program staff will ensure that a formal review by the Team Lead and the Manager of Fiscal and Reporting is completed prior to submission. The Team Lead will initiate the process by obtaining the obligation amount from the LIHEAP Contract Specialist and entering the amount into the quarterly report. The Manager of Fiscal and Reporting will review and confirm the amount to be submitted. Implementation date: April 30, 2026 Responsible persons: Michael De Young, Director of Community Affairs Cathy Jung, Senior Manager of Finance and Reporting

View Audit 392506

Finding 1180905 (2025-021)

Material Weakness 2025

State of Texas C/o Comptroller of Public Accounts

TX

Reporting Special Tests & Provisions Significant Deficiency § 200.303

Corrective action plan: Vendor System Safeguards: TWC's I3 (Department of Analytics & Evaluation), IT (Information Technology), and WFA (Workforce Automation) resources will require our WorkInTexas.com vendor, Geographic Solutions Inc (GSI), to implement additional system safeguards to prevent the d...

Corrective action plan: Vendor System Safeguards: TWC's I3 (Department of Analytics & Evaluation), IT (Information Technology), and WFA (Workforce Automation) resources will require our WorkInTexas.com vendor, Geographic Solutions Inc (GSI), to implement additional system safeguards to prevent the duplication of hour entries when extracting data from the WIT system and creating files. TWC resources will maintain oversight of the implementation and ongoing effectiveness of these safeguards. Joint Anomaly Detection: TWC's I3 (Department of Analytics & Evaluation), IT (Information Technology), and WFA (Workforce Automation) resources will require our WorkInTexas.com vendor, Geographic Solutions Inc (GSI), to establish automated validation checks to identify anomalies such as duplicate lines, unexpected variances, and irregular hour totals prior to ingesting vendor files into TWC systems. TWC resources will maintain oversight of the implementation and ongoing effectiveness of these validation checks. TWC IT Data Reconciliation: TWC IT (Information Technology) will enhance supervisory review vendor procedures to reconcile data received from third-party vendors against source records, verifying completeness and accuracy before supplying to I3 (Department of Analytics & Evaluation) for inclusion in federal reporting. Implementation date: December 31, 2026 Responsible persons: Greg Waugh, Director, Workforce Automation (WFA), TWC Richard Yashewski, Director, IT Maintenance & Operations, TWC Geoffrey Miller, Director, Department of Analytics & Evaluation (I3), TWC

View Audit 392506

Finding 1180899 (2025-010)

Material Weakness 2025

State of Texas C/o Comptroller of Public Accounts

TX

Special Tests & Provisions Subrecipient Monitoring Eligibility § 200.303

Corrective action plan: HHSC will conduct an end-to-end review of the sanctions process to identify and implement any needed changes to the business process, training, or system. Implementation date: May 31, 2026 Responsible person: Carrie Robertson, Manager, Strategy and Innovation–Business Integra...

Corrective action plan: HHSC will conduct an end-to-end review of the sanctions process to identify and implement any needed changes to the business process, training, or system. Implementation date: May 31, 2026 Responsible person: Carrie Robertson, Manager, Strategy and Innovation–Business Integration and Support

View Audit 392506

Finding 1180893 (2025-008)

Material Weakness 2025

State of Texas C/o Comptroller of Public Accounts

TX

Reporting Significant Deficiency Internal Control / Segregation of Duties § 200.302 § 200.303 § 200.329

Corrective action plan: HHSC has taken steps to improve the consistency and reliability of financial reporting related to Maintenance of Effort (MOE) expenditures, specifically, amounts reported on the ACF 204, submitted by HHSC Budget and the ACF 196R, submitted by HHSC Federal Reporting (FR). To a...

Corrective action plan: HHSC has taken steps to improve the consistency and reliability of financial reporting related to Maintenance of Effort (MOE) expenditures, specifically, amounts reported on the ACF 204, submitted by HHSC Budget and the ACF 196R, submitted by HHSC Federal Reporting (FR). To address potential discrepancies and strengthen internal controls, HHSC Federal Reporting has implemented and documented a formal reconciliation process. This process involves the following key components: • Implementation and documentation of a formal reconciliation process that compares all MOE expenditures for HHSC, TEA, and TWC reported on the ACF 204 to those reported on the ACF 196R before report submission. The process outlines specific steps for data cross-referencing and validation to ensure completeness and accuracy. • Research, resolve, and correct any discrepancies identified during the reconciliation process before the reports are finalized and submitted for management review. • Reinforcement of management review and documentation of the reconciliation between the ACF-204 and ACF-196R will be incorporated into the approval process prior to report certification. Implementation date: February 28, 2026 Responsible person: Alan Flynn, Manager, Federal Reporting

View Audit 392506

Finding 1180876 (2025-002)

Material Weakness 2025

State of Texas C/o Comptroller of Public Accounts

TX

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

Corrective action plan: ITS Management will establish a formal, documented user access review program applicable to both privileged and non-privileged network users. Key actions include: 1. Policy Updates: Revise information technology access control policies and procedures to re-quire periodic (at ...

Corrective action plan: ITS Management will establish a formal, documented user access review program applicable to both privileged and non-privileged network users. Key actions include: 1. Policy Updates: Revise information technology access control policies and procedures to re-quire periodic (at least annual) reviews of all network user access. 2. Standardized Process and Documentation: Implement a consistent, documented review process and maintain records in a centralized repository to ensure accountability and auditability. 3. Monitoring and Oversight: Implement oversight procedures to track completion of access re-views and remediation of identified issues, with reporting to IT and information security leadership to support governance. Implementation dates: 1. Policy and procedure updates: Expected completion by April 30, 2026 2. Standardized process and repository implementation: Expected completion by May 31, 2026 3. First completed annual review under the revised process: Expected completion by June 30, 2026 Responsible persons: Tara Mitchell, Director of IT Operations Sean Peterson, Chief Information Officer

View Audit 392506

Finding 1180872 (2025-016)

Material Weakness 2025

State of Texas C/o Comptroller of Public Accounts

TX

Procurement, Suspension & Debarment Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303

Corrective action plan: • IT will coordinate with HR on strengthening the separation process, to include HR running separation reports quarterly and sending to IT to cross check. Will perform regular scheduled meetings to discuss the separation process/issues. • IT is testing automatic scripts that ...

Corrective action plan: • IT will coordinate with HR on strengthening the separation process, to include HR running separation reports quarterly and sending to IT to cross check. Will perform regular scheduled meetings to discuss the separation process/issues. • IT is testing automatic scripts that will aid in the process and will be implemented this year. • IT will document quarterly access reviews which are already done. • IT will work on enhancing automation and controls; Will utilize AI to assist. Implementation date: May 2026 Responsible person: Chris Bunton, CIO, Texas Department of Agriculture

View Audit 392506

Finding 1180825 (2025-001)

Material Weakness 2025

La Roche University

PA

Student Financial Aid Reporting

Condition The University did not notify the National Student Loan Data System (NSLDS) in a timely manner for 1 student with status changes in the sample of 25 students selected. Corrective Action Plan La Roche University concurs with the finding. The Office of the Registrar has implemented a new sta...

Condition The University did not notify the National Student Loan Data System (NSLDS) in a timely manner for 1 student with status changes in the sample of 25 students selected. Corrective Action Plan La Roche University concurs with the finding. The Office of the Registrar has implemented a new standard operating procedure regarding the reporting of students who have notified us of their withdrawal from the University at the end of spring term/early summer. Identified Error: La Roche University reports enrollment through the National Student Clearinghouse (NSC), which then reports to NSLDS. Because summer is not a mandatory reporting period, if a student is not enrolled they are not coded as withdrawn until they do not return in the fall; only on the first of fall enrollment report would they be coded as withdrawn. This does not meet the reporting timeline to NSLDS if we know a student is not planning to return. This only presents as an issue with the length of time between the end of spring and start of fall term; this is not an issue between the end of fall and start of spring term. New Procedure: If a student submits a Withdrawal form at the end of spring term through the first week of August, we must manually report them as withdrawn in NSC, as we know their intention to not return. Any forms submitted beginning in mid to late August will be picked up on the first of fall enrollment report as withdrawn and still fall within the reporting timeline. Name(s) of Contact Person(s) Responsible for Corrective Action • Katie Elverson, Registrar Anticipated Completion Date Implementation begins in May 2026 and will continue being implemented in all summers going forward.

View Audit 392486

Finding 1180821 (2025-002)

Material Weakness 2025

Stroudsburg Area School District

PA

Allowable Costs / Cost Principles Reporting § 200.510

Significant Deficiency 2025-002 (Internal Control Over Federal Award Reporting – ESSER III) Federal Program: Education Stabilization Fund - ARP-ESSER ALN: 84.425U Condition: Allowable ESSER III expenditures incurred during fiscal year 2023-24 were not identified or included on the Schedule of Expend...

Significant Deficiency 2025-002 (Internal Control Over Federal Award Reporting – ESSER III) Federal Program: Education Stabilization Fund - ARP-ESSER ALN: 84.425U Condition: Allowable ESSER III expenditures incurred during fiscal year 2023-24 were not identified or included on the Schedule of Expenditures of Federal Awards (SEFA) for that year. In addition, expenditures related to Federal Set-Aside awards were mistakenly included in the Final Expenditure Report for ESSER III, resulting from a misunderstanding of the structure of the federal awards. Recommendation: Strengthen internal controls Corrective Action: The District will provide targeted training to staff responsible for federal grant accounting to ensure a clear understanding of federal grant award structures, including the distinction between ESSER III and related Federal Set-Aside awards. This training will cover grant setup, expenditure coding, and reporting requirements. Person Responsible: Brenda VanBuskirk, Business Manager Proposed Completion Date: December 31, 2025

View Audit 392478

Finding 1180820 (2025-004)

Material Weakness 2025

Illinois State University

IL

Student Financial Aid Matching / Level of Effort / Earmarking Subrecipient Monitoring § 200.303

Management Response: The University agrees with the finding. The identified issue was isolated and only impacted fall graduates. This issue was fully addressed when the university filed its fall 2025 enrollment reporting. The university has conducted an internal audit to identify students that were ...

Management Response: The University agrees with the finding. The identified issue was isolated and only impacted fall graduates. This issue was fully addressed when the university filed its fall 2025 enrollment reporting. The university has conducted an internal audit to identify students that were reported incorrectly and has manually updated files to ensure dates were properly reflected. At current state, internal monitoring and manual edits are made if discrepancies appear. The university has been in contact with PeopleSoft software related to the issue. Should the software issue not be resolved, the university plans to continue with manual edits to ensure proper reporting. Contact Person: Stacy Ramsey, University Registrar srramse@ilstu.edu Completion Date: December 2025

View Audit 392475

Finding 1180797 (2025-002)

Material Weakness 2025

Easter Seals Ucp North Carolina & Virginia, Inc.

NC

Reporting Internal Control / Segregation of Duties

FINDING 2025-002 Name of Responsible Individual: Jessi Ayers Corrective Action: Management has applied the suggested changes to the schedule and will implement additional control procedures to include quarterly reconciliations and enhanced identification of federal awards at the initial stages of an...

FINDING 2025-002 Name of Responsible Individual: Jessi Ayers Corrective Action: Management has applied the suggested changes to the schedule and will implement additional control procedures to include quarterly reconciliations and enhanced identification of federal awards at the initial stages of an agreement. Anticipated Completion Date: June 30, 2026

View Audit 392464

Finding 1180792 (2025-004)

Material Weakness 2025

City of Croswell

MI

Reporting Subrecipient Monitoring Material Weakness

The City will establish procedures whereby the Clerk and Manager will prepare the Schedule of Expenditures of Federal Awards (SEFA) at each fiscal year end.

View Audit 392455

Finding 1180783 (2025-001)

Material Weakness 2025

Inspiritus, Inc.

GA

Reporting

We agree with the recommendation to improve the timing of report filings. Both the finance team and operations team will implement cross-training to ensure continuity of the process in case of teammate turnover. The financial report will be prepared timely after the close of a period and the finance...

We agree with the recommendation to improve the timing of report filings. Both the finance team and operations team will implement cross-training to ensure continuity of the process in case of teammate turnover. The financial report will be prepared timely after the close of a period and the finance team will communicate to the operations team once completed and ready for review and signoff. The operations team will ensure final approval and submission of the report.

View Audit 392452

Finding 1180762 (2025-001)

Material Weakness 2025

Federation of Appalachian Housing Enterprises, Inc.

KY

Subrecipient Monitoring Reporting

Federation of Appalachian Housing Enterprises, Inc. acknowledges that we should have been filing information for all of our grantees over $30,000 on the FFATA Sub-award Reporting System website. We have a remediation plan in place to ensure that all past grantees over $30,000 are registered on the w...

Federation of Appalachian Housing Enterprises, Inc. acknowledges that we should have been filing information for all of our grantees over $30,000 on the FFATA Sub-award Reporting System website. We have a remediation plan in place to ensure that all past grantees over $30,000 are registered on the website, and we have included FFATA registration as a step in the creation of all future RDCA grantees.

View Audit 392447

Corrective Action Plans

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