Corrective Action Plans

Finding 1229904 (2025-003)

Material Weakness 2025

MI

Reporting Internal Control / Segregation of Duties § 200.512 § 200.520

Finding: In accordance with 2 CFR § 200.512(a), the audit must be completed and the reporting package, which includes the Data Collection Form (SF-SAC), must be submitted to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine...

Finding: In accordance with 2 CFR § 200.512(a), the audit must be completed and the reporting package, which includes the Data Collection Form (SF-SAC), must be submitted to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Recommendation: The Organization should review internal controls and implement necessary procedures to ensure that accounting processes are completed timely so the audit can be completed within the parameters of the due date. Action to be taken: management review procedures will be implemented to ensure all future submissions are completed within the deadlines required by Uniform Guidance. Responsible person - Tony Postma, Interim Chief Financial Officer.

View Audit 411115

Finding 1229901 (2025-001)

Material Weakness 2025

Journalism Development Network, Inc.

DC

Subrecipient Monitoring Reporting

Views of Responsible Officials: We acknowledge this lapse. We have already updated procedures to ensure that we are registering subgrants correctly. Name and Title of Responsible Officials: Oliver Rivers, Chief Operating Officer and Deniz Sarkinovic, Senior Director of Compliance Anticipated Complet...

Views of Responsible Officials: We acknowledge this lapse. We have already updated procedures to ensure that we are registering subgrants correctly. Name and Title of Responsible Officials: Oliver Rivers, Chief Operating Officer and Deniz Sarkinovic, Senior Director of Compliance Anticipated Completion Date: September 30, 2026

View Audit 411113

Finding 1229882 (2025-001)

Material Weakness 2025

Olive View-Ucla Education & Research Institute

CA

Reporting Special Tests & Provisions

Condition In accordance with provisions of 2 CFR Part 200 Subpart F, the filing of the data collection form and submission of audited financial statement to the Federal Audit Clearinghouse is to be completed within 9 months of the fiscal year end. The Institute did not complete the filing within 9 m...

Condition In accordance with provisions of 2 CFR Part 200 Subpart F, the filing of the data collection form and submission of audited financial statement to the Federal Audit Clearinghouse is to be completed within 9 months of the fiscal year end. The Institute did not complete the filing within 9 months of the fiscal year ended June 30, 2025. Criteria The filing of the data collection form and audited financial statement are due to the Federal Audit Clearinghouse within 9 months after the end of the audit period. Cause Due to change to new audit firm, locating supporting documents for items selected for testing and errors in the general ledger reconciliations, the audited financial statements were not completed timely. Effect The required reporting was not completed until August 2026. Recommendation The Institute should put procedures in place to ensure accurate reporting of general ledger accounts and locating supporting documents so reporting to the Federal Audit Clearinghouse can be completed within 9 months of the fiscal year end. Management’s Response Management agrees with the finding and recommendation. There has been a change in leadership at the Institute. The Institute recognizes the importance of completing the annual audit and submitting the data collection form and audited financial statements to the Federal Audit Clearinghouse within the required nine-month period. Management will move from paper-based to an electronic system in order to facilitate future audits or document requests. We will strengthen year-end close and audit preparation procedures, including monthly reconciliation of general ledger accounts, organization of supporting documentation, and coordination with the independent auditors to support timely completion of future audits. Action Taken The Institute has established an audit preparation and close schedule with assigned responsibilities and target completion dates. General ledger accounts will be reviewed and reconciled monthly and as part of the year-end close, and audit supporting documentation will be organized and maintained in a centralized location to facilitate timely retrieval. Management will monitor the audit timeline and outstanding requests to support submission to the Federal Audit Clearinghouse within the required deadline.

View Audit 411105

Finding 1229791 (2025-001)

Material Weakness 2025

Liberty Resources, Inc.

PA

Reporting

Name of the contact person responsible for corrective action: Glenn Seagraves, CFO Corrective Action Plan: The delay in filing was the result of significant staff turnover in Liberty Resources Inc.’s finance department producing the Organization's financial statements and the limited availability of...

Name of the contact person responsible for corrective action: Glenn Seagraves, CFO Corrective Action Plan: The delay in filing was the result of significant staff turnover in Liberty Resources Inc.’s finance department producing the Organization's financial statements and the limited availability of other resources to assist in the preparation of the financial statements. The Organization has developed and implemented a staffing plan that has adjusted the responsibilities of existing staff and has also hired new additional staff since the end of the June 30, 2024 fiscal year. Anticipated completion date: The plan has been implemented and will continue to be monitored to ensure the Organization’s ability to complete the Single Audit financial statements in a timely manner and that the data collection form can be submitted in compliance with the Single Audit requirements.

View Audit 411093

Finding 1229778 (2025-001)

Material Weakness 2025

Center for Applied Research Solutions, Inc.

CA

Reporting Subrecipient Monitoring § 200.331 § 200.510

Management Response Management concurs with this finding, in part. CARS acknowledges that its SEFA preparation process did not include a formally documented procedure for evaluating and documenting subrecipient-versus-contractor determinations or a documented supervisory review control over the prep...

Management Response Management concurs with this finding, in part. CARS acknowledges that its SEFA preparation process did not include a formally documented procedure for evaluating and documenting subrecipient-versus-contractor determinations or a documented supervisory review control over the preparation of the SEFA. However, during the period under audit, management did review agreements at the time of award and considered the nature of each relationship in determining the appropriate classification based on its understanding of the subrecipient criteria established under Uniform Guidance, 2 CFR § 200.331. Accordingly, while CARS acknowledges that its evaluation and review processes were not formally documented, management believes it is important to distinguish the absence of formal documentation and controls from an absence of management review or consideration of the appropriate classification. CARS’ classification approach had also been discussed with the auditors during the annual Single Audits conducted for Years 1 through 4 of the current federal award. No exceptions related to the classification of these entities were identified during those prior audits. CARS recognizes, however, that responsibility for determining the appropriate classification of subrecipients and contractors and for ensuring accurate SEFA reporting rests with management. Based on additional training regarding subaward management under 2 CFR Part 200, together with the matters identified and discussed during the current audit, CARS agrees that establishing a formal written policy and documented review process will strengthen its internal controls and help ensure consistent application of the Uniform Guidance requirements. Upon identification of the classification issue during the current audit, CARS evaluated the affected entities and revised the SEFA prior to issuance of the audit report to properly reflect amounts provided to subrecipients. The revision did not change total federal expenditures reported on the SEFA. Corrective Action CARS will develop and implement written procedures for subrecipient-versus-contractor determinations and will establish formal SEFA preparation and review procedures, including documented supervisory review prior to issuance. Responsible Party: Ranelle Bensch, Director of Finance & Compliance Target Implementation Date: January 2027

View Audit 411080

Finding 1229777 (2025-004)

Material Weakness 2025

Neuse River Council of Governments D/b/a Eastern Carolina Council

NC

Allowable Costs / Cost Principles Cash Management Material Weakness

Finding 2025 – 004 Internal Controls over Financial Reporting Name of Contact Person: David Rosado, Executive Director Corrective Action: The Council agrees with this finding. The Council has hired a new Finance Director effective January 2, 2025, with the appropriate skills, knowledge, and experien...

Finding 2025 – 004 Internal Controls over Financial Reporting Name of Contact Person: David Rosado, Executive Director Corrective Action: The Council agrees with this finding. The Council has hired a new Finance Director effective January 2, 2025, with the appropriate skills, knowledge, and experience to oversee the Finance Department. The Finance Director has identified and corrected internal control issues. All coding and processing of Aging Expenditures has been updated, and documents complied with State and Federal policies are in place. Completion Date: December 8, 2025

View Audit 411078

Finding 1229771 (2025-002)

Material Weakness 2025

Senior Citizens Housing Development Corporation of Washington

FL

Allowable Costs / Cost Principles HUD Housing Programs Reporting

FINDING No. 2025-002: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Recommendation: Management should take corrective measures to prevent further escrow disbursements for exempt taxes and should obtain timely refunds for amounts that w...

FINDING No. 2025-002: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Recommendation: Management should take corrective measures to prevent further escrow disbursements for exempt taxes and should obtain timely refunds for amounts that were incorrectly disbursed. Action Taken: Management has properly filed the real estate exemption forms with the District of Columbia in prior years. When real estate funds were improperly withdrawn by the mortgage company and/or its tax vendor, management promptly identified the issue and recorded a journal entry (debit accounts receivable, credit escrow deposit) to recognize the receivable. Beginning in 2024 and continuing through 2025, management made multiple attempts to follow up with the mortgage company representatives to request the refund. Management has taken proactive and persistent steps to pursue resolution. As of early 2026, the refund has been successfully received. Management also expects that the mortgage company will no longer withdraw real estate tax payments for the property going forward. Based on the above, management believes appropriate controls were in place and effectively operated, as evidenced by the timely identification of the issue and the actions taken to remediate it. If the Oversight Agency for Audit has questions regarding the plan, please call Irene Phillips at 954-835-9200. Sincerely yours, Irene Phillips, CFO Irene Phillips CFO

View Audit 411038

Finding 1229770 (2025-001)

Material Weakness 2025

Senior Citizens Housing Development Corporation of Washington

FL

HUD Housing Programs Reporting

Oversight Agency for Audit, Senior Citizens Housing Development Corporation of Washington respectfully submits the following corrective action plan for the year ended December 31, 2025. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 2...

Oversight Agency for Audit, Senior Citizens Housing Development Corporation of Washington respectfully submits the following corrective action plan for the year ended December 31, 2025. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 201, Coral Springs, Florida 33067. Audit period: January 1, 2025 through December 31, 2025 The findings from the December 31, 2025 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers in the schedule. SECTION III - FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT FINDING No. 2025-001: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Recommendation: Management should submit a form HUD-9250 to withdraw the excess deposits and implement procedures to ensure the correct amounts are deposited into the replacement reserve account each month. Action Taken: The Project will submit a form HUD-9250 to withdraw the excess replacement reserve deposits as recommended. In addition, management will strengthen its review procedures to ensure that replacement reserve deposits are made in the correct HUD-approved amounts and that all reserve account adjustments are addressed on a timely basis.

View Audit 411038

Finding 1229748 (2025-001)

Material Weakness 2025

VILLAGE COOPERATIVE OF BROOMFIELD

MN

Internal Control / Segregation of Duties Material Weakness Reporting

In September 2025, the Cooperative entered into a management agreement with Paramark Real Estate Services to manage the Cooperative. The management company maintains sufficient controls and procedures related to financial reporting and have proper segregation of duties in place to safeguard the asse...

In September 2025, the Cooperative entered into a management agreement with Paramark Real Estate Services to manage the Cooperative. The management company maintains sufficient controls and procedures related to financial reporting and have proper segregation of duties in place to safeguard the assets of the Cooperative.

View Audit 410977

Finding 1229741 (2025-001)

Material Weakness 2025

Barry County, Missouri

MO

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

The federal reporting system still poses problems getting information uploaded. The County will continue to seek training videos and emailed information to better understand the reporting system. For the last reporting cycle we had to reach out with emails and phone calls because the system wouldn’t...

The federal reporting system still poses problems getting information uploaded. The County will continue to seek training videos and emailed information to better understand the reporting system. For the last reporting cycle we had to reach out with emails and phone calls because the system wouldn’t allow reporting which had to be fixed on the federal reporting side before we could complete our reporting.

View Audit 410959

Finding 1229739 (2025-001)

Material Weakness 2025

Scottdale Early Learning, Inc.

GA

Reporting

Corrective Action: Management will implement the following: • A federal award register will be maintained and updated upon receipt of each award, recording the funding agency, pass-through entity and identifying numbers, Assistance Listing Number, award period, and award amount. • The chart of accou...

Corrective Action: Management will implement the following: • A federal award register will be maintained and updated upon receipt of each award, recording the funding agency, pass-through entity and identifying numbers, Assistance Listing Number, award period, and award amount. • The chart of accounts will be restructured so that federal award revenue is recorded in dedicated accounts, one per Assistance Listing Number, with class tracking by award. This allows total federal expenditures and the SEFA to be produced directly from the general ledger. • Federal expenditures will be reviewed against the Single Audit threshold quarterly; the review will be documented and signed by the Executive Director. • The SEFA will be prepared quarterly, reviewed by management, and completed for the fiscal year in advance of audit fieldwork. • Personnel responsible for federal grant accounting, together with the Organization's outside accountants, will complete training on Uniform Guidance administrative requirements, cost principles, and audit requirements. Responsible Officials: Dr. Leah Skinner, Executive Director, with day-to-day administration by the Finance Manager and the Organization's outside accountants. Anticipated Completion Date: The restructured chart of accounts and award register are scheduled for implementation with the October 2026 accounting close; the first documented quarterly threshold review and SEFA will be prepared for the quarter ending December 31, 2026; training will be completed by December 31, 2026.

View Audit 410951

Finding 1229733 (2025-001)

Material Weakness 2025

Municipal Employees Credit Union of Baltimore, Inc.

MD

Reporting

Corrective Action Plan September 3, 2026 Department of the Treasury – 21.033 CDFI COVID-19 Equitable Recovery Program Municipal Employees Credit Union of Baltimore, Inc. (MECU) respectfully submits the following corrective action plan for the year ended December 31, 2025. Name of auditee: MECU Name ...

Corrective Action Plan September 3, 2026 Department of the Treasury – 21.033 CDFI COVID-19 Equitable Recovery Program Municipal Employees Credit Union of Baltimore, Inc. (MECU) respectfully submits the following corrective action plan for the year ended December 31, 2025. Name of auditee: MECU Name of audit firm: Doeren Mayhew Assurance Period covered by the audit: January 01, 2025 through December 31, 2025 The finding from the December 31, 2025, Schedule of Findings and Questioned Costs is discussed below. The finding is numbered consistently with the number assigned in the Schedule of Findings and Questioned Costs. A. Current Finding on the Schedule of Findings and Questioned Costs 1. Finding 2025-001 ERP funds used totaling $400,000 to fund the allowance for credit losses was not included in the Credit Union’s Performance Progress and Use of Award Reports submitted to the CDFI Fund. The underlying use of the funds was in compliance with the ERP grant; however, the related activity was omitted from the required reporting. 2. Action(s) Taken or Planned on the Finding The Credit Union agrees with the finding. Management will strengthen its procedures over federal grant reporting to ensure that all reportable uses of CDFI Equitable Recovery Program funds are completely and accurately included in required reports submitted to the CDFI Fund. 3. Implementation Date Estimated completion date is September 30, 2026. Corrective Action Plan prepared by: Name: Michael Solomon Position: Vice President of Finance Telephone number: (410) 223-4045

View Audit 410939

Finding 1229732 (2025-002)

Material Weakness 2025

Somerset Care, Inc.

PA

Procurement, Suspension & Debarment HUD Housing Programs Reporting § 200.512

A master schedule has been crated to identify all critical due dates for regulatory requirements. An internal log is maintained to identify all due dates on critical reporting timelines and regulatory requirements.

View Audit 410926

Finding 1229681 (2025-002)

Material Weakness 2025

Bowling Green Warren County Regional AIR

KY

Reporting § 200.512

August 31, 2026 - Bowling Green – Warren County Regional Airport Board respectfully submits the following corrective action plan for the year end June 30, 2025. Name and address of independent public accounting firm: Kirby & Moore, LLP, 1020 College Street, Bowling Green, Kentucky. Audit period: Fis...

August 31, 2026 - Bowling Green – Warren County Regional Airport Board respectfully submits the following corrective action plan for the year end June 30, 2025. Name and address of independent public accounting firm: Kirby & Moore, LLP, 1020 College Street, Bowling Green, Kentucky. Audit period: Fiscal year ending June 30, 2025. The findings from the June 30, 2025 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT: 2025-001 Material Weakness: Adjusting Journal Entries. Recommendation: The accounts of the organization should be reviewed each reporting period to ensure balances are reported in accordance with accrual basis accounting principles generally accepted in the United States of America (U.S. GAAP). Action Taken: Airport management will ensure accounts are reviewed each reporting period to ensure balances are reported in accordance with U.S. GAAP. FINDINGS – FEDERAL AWARD PROGRAM AUDIT: DEPARTMENT OF TRANSPORTATION - 2025-002 Airport Improvement Program – 20.106. Recommendation: Procedures should be put in place to ensure the data collection form is submitted to the FAC timely. Action Taken: Airport management will ensure the data collection form is submitted to the FAC timely. If the Federal Aviation Administration has questions regarding this plan, please call Susan Harmon at 270-842-1101.

View Audit 410881

Finding 1229679 (2025-002)

Material Weakness 2025

Mermentau Elderly Housing Corporation Dba Riverbend Apartments

FL

HUD Housing Programs Reporting

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

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

View Audit 410874

Finding 1229678 (2025-001)

Material Weakness 2025

Mermentau Elderly Housing Corporation Dba Riverbend Apartments

FL

HUD Housing Programs Reporting

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

Oversight Agency for Audit, Mermentau Elderly Housing Corporation respectfully submits the following corrective action plan for the year ended December 31, 2025. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 201 Coral Springs, Florida 33067 Audit period: January 1, 2025 through December 31, 2025 The findings from the December 31, 2025 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. SECTION III - FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT FINDING NO. 2025-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Recommendation: The Project should make sufficient monthly deposits to the escrow account in a timely manner. Action Taken: We are researching the underfunding and will ensure the escrow accounts are fully funded on a monthly basis. New procedures have been implemented to review the deposits each month to ensure amounts are proper.

View Audit 410874

Finding 1229581 (2025-004)

Material Weakness 2025

Gage County

NE

Reporting Subrecipient Monitoring Allowable Costs / Cost Principles

Timely communication and coordination regarding Federal award activity and applicable compliance requirements to ensure required reporting is completed within applicable timeframe.

View Audit 410862

Finding 1229567 (2025-005)

Material Weakness 2025

Family Health Centers, Inc.

SC

Reporting

In Finding 2025-005, a finding reported that the Organization did not submit timely or accurate FFR filings. In response to Finding 2025-005, Management recognizes the importance of complying with federal reporting guidelines and has filed timely and corrected previous FFRs starting in 2026.

View Audit 410860

Finding 1229562 (2025-003)

Material Weakness 2025

Robonation Inc.

VA

Reporting Subrecipient Monitoring § 200.512

Views of Responsible Officials: Management acknowledges this deficiency. The delay traces to a multi-year audit backlog inherited by the current VP of Finance in 2026: the fiscal year 2023 audit was not completed on time, which pushed fiscal year 2024 fieldwork past the September 30, 2025 filing dea...

Views of Responsible Officials: Management acknowledges this deficiency. The delay traces to a multi-year audit backlog inherited by the current VP of Finance in 2026: the fiscal year 2023 audit was not completed on time, which pushed fiscal year 2024 fieldwork past the September 30, 2025 filing deadline and resulted in the late DCF submission. Since then, management has restored the organization's relationship with its prior audit firm, enabling more efficient execution and communication. The fiscal year 2023 and 2024 audits were both completed and closed out in 2026, resolving the backlog. The fiscal year 2025 audit is on track for completion by September 30, 2026, positioning RoboNation to submit the related DCF within the required Federal deadline. Management has also implemented standardized monthly reconciliation procedures, formalized close processes, and enhanced reporting capabilities to sustain timely audits going forward. The fiscal year 2026 audit is targeted for fieldwork completion in April 2027 and full completion by end of May 2027, establishing a predictable cadence well ahead of deadlines.

View Audit 410857

Finding 1229544 (2025-002)

Material Weakness 2025

City of Williamsport

PA

Reporting

Finding 2025-002 Reporting Corrective Action: The City discovered and corrected the error during 2024, at which time additional reviews were implemented over report submission. The error has been corrected with 2025 and 2026 reporting.

View Audit 410845

Finding 1229433 (2025-002)

Material Weakness 2025

Community Partnership of Southeast Missouri, Inc.

MO

Reporting § 200.512

Finding Type: Noncompliance. Contact Person: Mr. Ryan Essex, Executive Director, (573) 651-3747. Recommendation: We recommend that all required filings be submitted timely according to the Single Audit Act of 1984 and Title 2 U.S. Code of Federal Regulations Guidelines. Corrective Action: We have hi...

Finding Type: Noncompliance. Contact Person: Mr. Ryan Essex, Executive Director, (573) 651-3747. Recommendation: We recommend that all required filings be submitted timely according to the Single Audit Act of 1984 and Title 2 U.S. Code of Federal Regulations Guidelines. Corrective Action: We have hired a new Director and Finance Director and will ensure the Data Collection Form is submitted timely going forward. Proposed Completion Date: Fiscal year 2027.

View Audit 410833

Finding 1229375 (2025-003)

Material Weakness 2025

San Diego Youth Services

CA

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting

Views of Responsible Officials and Planned Corrective Actions San Diego Youth Services (SDYS) concurs with this finding. During the audit period, the Organization experienced significant turnover in both accounting and program leadership positions, which impacted the tracking and timely submission o...

Views of Responsible Officials and Planned Corrective Actions San Diego Youth Services (SDYS) concurs with this finding. During the audit period, the Organization experienced significant turnover in both accounting and program leadership positions, which impacted the tracking and timely submission of required grant and contract reports. To address this issue, SDYS has implemented enhanced internal controls to strengthen grant reporting oversight and ensure compliance with all reporting requirements. These corrective actions include: • The development and maintenance of a centralized grant reporting calendar that identifies all reporting requirements, responsible staff, and submission deadlines for each grant and contract. • Assignment of clear reporting responsibilities to designated program and fiscal staff, with established internal due dates that preceded funder deadlines to allow adequate time for review. • Monthly monitoring of reporting deadlines by program leadership and the Finance Department to ensure timely completion and submission of required reports. • Increased executive oversight by the Chief Operating Officer (COO), who will review grant reporting compliance on a regular basis. Any report anticipated to be submitted after its required deadline must be communicated to and approved by the COO in advance whenever practicable. The reason for the delay, corrective actions, and revised submission timeline will be documented and monitored to prevent recurrence. • Cross-training of program and fiscal staff to ensure continuity of reporting responsibilities during periods of staff turnover or vacancies. Management believes these enhanced procedures will strengthen accountability, improve communication between program and fiscal teams, and ensure accurate and timely submission of all grant and contract reporting requirements going forward.

View Audit 410804

Finding 1229361 (2025-002)

Material Weakness 2025

San Diego Youth Services

CA

Reporting § 200.510

Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding and recognizes the importance of preparing a complete and accurate Schedule of Expenditures of Federal Awards (SEFA) prior to the commencement of the annual audit in accordance with the requirements of 2...

Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding and recognizes the importance of preparing a complete and accurate Schedule of Expenditures of Federal Awards (SEFA) prior to the commencement of the annual audit in accordance with the requirements of 2 CFR §200.510(b). The finding resulted from the absence of a formalized process to consistently identify and document federal funding components within contracts funded through multiple revenue sources, including changes reflected in new and renewed County contracts. As a result, certain federal funding components were not identified during the initial preparation of the SEFA, requiring revisions during the audit. In response, management has implemented and will continue to enhance procedures to strengthen the preparation and review of the SEFA throughout the fiscal year. These corrective actions include: • Establishing formal procedures requiring the identification and documentation of Assistance Listing Numbers (ALNs) for all new contracts and contract renewals. • Tracking applicable federal funding and corresponding ALNs within the accounting system to support the accurate preparation and review of the SEFA. • Requiring the Controller to review all new and renewed contracts monthly to identify changes affecting federal funding and ensure the SEFA is updated accordingly. • Obtaining and maintaining timely ALN confirmations and supporting documentation for all applicable federal awards. • Preparing and reconciling the completed SEFA to supporting accounting records, finding documentation, and applicible federal and pass-through contracts prior to submission to the independent auditors.

View Audit 410804

Finding 1229347 (2025-001)

Material Weakness 2025

San Diego Youth Services

CA

Reporting Special Tests & Provisions

Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding and recognizes the importance of timely completion of the annual audit and submission of the audited financial statements and Data Collection Form to the Federal Audit Clearinghouse in accordance with th...

Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding and recognizes the importance of timely completion of the annual audit and submission of the audited financial statements and Data Collection Form to the Federal Audit Clearinghouse in accordance with the requirements of 2 CFR Part 200, Subpart F. The delay resulted from a combination of finance staff turnover, the transition in finance leadership, the extended completion timeline of the prior year’s audit, and the need to further strengthen year-end financial close and audit preparation processes. In response, management has implemented and continues to enhance monthly financial close and reconciliation procedures to improve the accuracy, completeness, and timeliness of financial reporting while strengthening overall audit readiness. To further strengthen the sustainability of the finance function, management has implemented cross-training within the finance department and is centralizing key financial close and audit preparation procedures to improve consistency, preserve institutional knowledge, and reduce reliance on individual staff members. In addition, management has established a comprehensive annual audit preparation timeline that includes completing key account reconciliations and audit schedules throughout the fiscal year, conducting periodic audit readiness reviews, and engaging the independent auditors by August 15. Audit fieldwork will begin no later than September 1, with the goal of issuing the audited financial statements by December 31, well in advance of the federal reporting deadline. Management believes these corrective actions will strengthen financial reporting processes, improve audit readiness, enhance organizational resilience, and ensure future compliance with the reporting requirements of 2 CFR Part 200, Subpart F.

View Audit 410804

Finding 1229322 (2025-001)

Material Weakness 2025

Town of Swampscott

MA

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303

Planned Corrective Action: The next subsequent Project and Expenditure report to be filed for this program will include the expenditures incurred for the period of 1/1/2025-3/31/2025 that were previously unreported. A second person will review subsequent reports for this program for accuracy prior t...

Planned Corrective Action: The next subsequent Project and Expenditure report to be filed for this program will include the expenditures incurred for the period of 1/1/2025-3/31/2025 that were previously unreported. A second person will review subsequent reports for this program for accuracy prior to submission to reduce the risk of non-compliance with program rules. Anticipated Completion Date: April 30th, 2026 Person Responsible for Corrective Action: Patrick Luddy (Director of Finance, Town of Swampscott, MA) Patrick Luddy

View Audit 410784

Corrective Action Plans

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