Corrective Action Plans

Finding 1241762 (2025-002)

Material Weakness 2025

OK

Reporting

Management is in the process of developing internal control procedures that ensure all necessary information is provided to the accountant to ensure timely filing of audit report with the Federal Clearinghouse.

View Audit 415765

Finding 1241760 (2025-002)

Material Weakness 2025

Mha Housing of the Piedmont, Inc.

NC

HUD Housing Programs Reporting

: To address the noted deficiencies in the late submissions to HUD and the FAC, management contends that the issues from the prior year have been extensive and we are still making necessary corrections and climbing out of the hole we found ourselves in. We are doing our best to get all the accounts ...

: To address the noted deficiencies in the late submissions to HUD and the FAC, management contends that the issues from the prior year have been extensive and we are still making necessary corrections and climbing out of the hole we found ourselves in. We are doing our best to get all the accounts corrected as we continue to run operations daily. Even though it’s been a slow process we are seeing great progress. It is our goal to have the audits completed timely as we always did in the past.

View Audit 415764

Finding 1241757 (2025-002)

Material Weakness 2025

Mha Housing of Eastern North Carolina, Inc.

NC

HUD Housing Programs Reporting

To address the noted deficiencies in the late submissions to HUD and the FAC, management contends that the issues from the prior year have been extensive and we are still making necessary corrections and climbing out of the hole we found ourselves in. We are doing our best to get all the accounts co...

To address the noted deficiencies in the late submissions to HUD and the FAC, management contends that the issues from the prior year have been extensive and we are still making necessary corrections and climbing out of the hole we found ourselves in. We are doing our best to get all the accounts corrected as we continue to run operations daily. Even though it’s been a slow process we are seeing great progress. It is our goal to have the audits completed timely as we always did in the past.

View Audit 415763

Finding 1241753 (2025-003)

Material Weakness 2025

Hollywood West Tenant Action Committee

CA

Subrecipient Monitoring HUD Housing Programs Reporting § 200.512

Name of auditee: Hollywood West Tenant Action Committee HUD auditee identification number: 122-44641 Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended June 30, 2025 CAP prepared by Name: Noel Sweitzer Position: President, HDSI Management, Inc. Telephone number...

Name of auditee: Hollywood West Tenant Action Committee HUD auditee identification number: 122-44641 Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended June 30, 2025 CAP prepared by Name: Noel Sweitzer Position: President, HDSI Management, Inc. Telephone number: (323) 231-1104 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Statement of condition 2025-003: The Corporation did not submit audited financial statements to the Federal Audit Clearinghouse after the receipt of the auditor's reports timely for the year ended June 30, 2024. Recommendation: The Corporation should submit audited financial statement to the Federal Audit Clearinghouse within the time frames required. Action(s) taken or planned on the finding: The audited financial statements were submitted on April 10, 2026.

View Audit 415762

Finding 1241745 (2025-002)

Material Weakness 2025

City of Sweetwater, Florida

FL

Reporting § 200.328

Views of Responsible Officials and Planned Corrective Actions The Grants Administrator and the Finance Department are working closely to compare all expenditures incurred by quarter to the expenditures as reported to the grantor in the quarterly reports. The Grants Administrator and Finance Departme...

Views of Responsible Officials and Planned Corrective Actions The Grants Administrator and the Finance Department are working closely to compare all expenditures incurred by quarter to the expenditures as reported to the grantor in the quarterly reports. The Grants Administrator and Finance Department have been working to make any corrections necessary for reporting purposes and to address the timing and presentation issues of expenditures as incurred versus as reported. Going forward, the Grants Administrator will be more involved in communicating with the Finance Department, at a minimum on a monthly basis, in regard to the reporting of expenditures that are being funded by federal, state, and local awards. The Finance Department and Grants Administrator are working to correct this finding through final reporting and closeout of the award.

View Audit 415759

Finding 1241740 (2025-004)

Material Weakness 2025

TUCOEMAS FEDERAL CREDIT UNION

CA

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

Material Weakness and Noncompliance: See Finding 2025-004. Recommendation: Management should establish formal grant acceptance and reporting procedures, including a reporting calendar, assigned preparer and reviewer responsibilities, documented supervisory review, reconciliation of reported amounts ...

Material Weakness and Noncompliance: See Finding 2025-004. Recommendation: Management should establish formal grant acceptance and reporting procedures, including a reporting calendar, assigned preparer and reviewer responsibilities, documented supervisory review, reconciliation of reported amounts to supporting records, and verification of timely submission. Action Taken: Prior to this finding, but subsequent to the audit period, the Credit Union established a formal grant management policy that defines roles, documentation standards, tracking procedures, reporting reconciliations, record retention, review and approval requirements, and periodic monitoring. The Credit Union considers all relevant requirements of Uniform Guidance, as well as specific requirements set forth in grant agreements and contracts. The Credit Union will maintain grant tracking records and reconcile grant activity to the general ledger and required award reports. Completion Date: July 28, 2026

View Audit 415753

Finding 1241739 (2025-003)

Material Weakness 2025

TUCOEMAS FEDERAL CREDIT UNION

CA

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

Material Weakness and Noncompliance: See Finding 2025-003. Recommendation: Management should implement a grant review and approval acceptance process, grant reporting calendar and review process that reconciles reporting periods to the Credit Union's fiscal year, assigns preparer and reviewer respon...

Material Weakness and Noncompliance: See Finding 2025-003. Recommendation: Management should implement a grant review and approval acceptance process, grant reporting calendar and review process that reconciles reporting periods to the Credit Union's fiscal year, assigns preparer and reviewer responsibilities, documents review, and reconciles reported categories to the general ledger and supporting records before submission. Action Taken: Prior to this finding, but subsequent to the audit period, the Credit Union established a formal grant management policy that defines roles, documentation standards, tracking procedures, reporting reconciliations, record retention, review and approval requirements, and periodic monitoring. The Credit Union considers all relevant requirements of Uniform Guidance, as well as specific requirements set forth in grant agreements and contracts. The Credit Union will maintain grant tracking records and reconcile grant activity to the general ledger and required award reports. Completion Date: July 28, 2026

View Audit 415753

Finding 1241738 (2025-002)

Material Weakness 2025

TUCOEMAS FEDERAL CREDIT UNION

CA

Allowable Costs / Cost Principles Subrecipient Monitoring Material Weakness

Material Weakness: See Finding 2025-002. Recommendation: Management should establish a formal grant management policy defining roles, documentation standards, tracking procedures, report reconciliations, record retention, review and approval requirements, and periodic monitoring. The policy and asso...

Material Weakness: See Finding 2025-002. Recommendation: Management should establish a formal grant management policy defining roles, documentation standards, tracking procedures, report reconciliations, record retention, review and approval requirements, and periodic monitoring. The policy and associated procedures should consider all relevant requirements of Uniform Guidance, as well as specific requirements set forth in grant agreements and contracts. Action Taken: Prior to this finding, but subsequent to the audit period, the Credit Union established a formal grant management policy that defines roles, documentation standards, tracking procedures, reporting reconciliations, record retention, review and approval requirements, and periodic monitoring. The Credit Union considers all relevant requirements of Uniform Guidance, as well as specific requirements set forth in grant agreements and contracts. The Credit Union will maintain grant tracking records and reconcile grant activity to the general ledger and required award reports. Completion Date: July 28, 2026

View Audit 415753

Finding 1241735 (2025-002)

Material Weakness 2025

Shelton School District No. 309

WA

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

The District will strengthen its procedures for documenting time and effort for employees whose salaries or benefits are charged to federal or other restricted funding sources. Employees will be required to complete the appropriate time and effort documentation in a timely manner and in accordance w...

The District will strengthen its procedures for documenting time and effort for employees whose salaries or benefits are charged to federal or other restricted funding sources. Employees will be required to complete the appropriate time and effort documentation in a timely manner and in accordance with applicable grant requirements and District procedures. Financial Services, in coordination with the grant administrator and supervisors, will establish a process to monitor the submission and completion of time and effort records. Supervisors will review documentation for completeness and accuracy, and Financial Services will follow up on missing or late records. The District will provide guidance to employees and supervisors regarding time and effort requirements, including when documentation is required, who is responsible for completing and approving it, and the importance of submitting records timely. Documentation will be retained in an organized manner and made available for audit or monitoring purposes. Responsible Party: Financial Services Manager, Grant Administrator, and Supervisors Monitoring: Financial Services will periodically review time and effort records to ensure required documentation has been submitted, approved, and retained. Missing or untimely documentation will be followed up on and corrective action taken as necessary.

View Audit 415745

Finding 1241726 (2025-003)

Material Weakness 2025

Supports to Encourage Low Income Families INC

OH

Reporting § 200.512

By addressing the recommendations described in Findings 2025-001 and 2025-002 as soon as practical, we will have additional staff resources and procedures documented to allow for a more regimented closing of the books, which will permit timely submission to the FAC.

View Audit 415740

Finding 1241714 (2025-003)

Material Weakness 2025

City of Atlanta

GA

Reporting Internal Control / Segregation of Duties

As part of the closeout process for the City's remaining CARES Act grants, the Department of Grants and Community Development (DGCD) will work with HUD to ensure that Section 15011 reporting obligations are met and submitted prior to grant closeout. Additionally, DGCD has implemented amended interna...

As part of the closeout process for the City's remaining CARES Act grants, the Department of Grants and Community Development (DGCD) will work with HUD to ensure that Section 15011 reporting obligations are met and submitted prior to grant closeout. Additionally, DGCD has implemented amended internal controls that include Section 15011 requirements. To prevent similar issues from occurring with future federal awards, DGCD Program and Fiscal Operations managers will track reporting deadlines and maintain documentation evidencing submission, while the Compliance Division managers will perform periodic reviews to verify compliance with any nonstandard federal reporting requirements. These corrective actions will strengthen oversight of federal reporting requirements and ensure future grants are administered in accordance with all applicable federal regulations and award conditions.

View Audit 415738

Finding 1241704 (2025-002)

Material Weakness 2025

City of Atlanta

GA

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

The City of Atlanta’s Department of Grants and Community Development (DGCD) will establish and implement internal controls to ensure all relevant first-tier subawards are reported timely and accurately in accordance with FFATA requirements. Effective immediately, FFATA applicability will be evaluate...

The City of Atlanta’s Department of Grants and Community Development (DGCD) will establish and implement internal controls to ensure all relevant first-tier subawards are reported timely and accurately in accordance with FFATA requirements. Effective immediately, FFATA applicability will be evaluated during DGCD’s subrecipient contracting process. After the final action legislation but prior to contract execution, DGCD Program and Fiscal Operations staff will review all subawards to determine if FFATA reporting thresholds are applicable and document applicability in subaward files. DGCD staff will complete required FFATA submissions through SAM.gov by the end of the month following the month in which the subaward contract is executed. Additionally, DGCD Program and Fiscal Operations managers will conduct quarterly reviews of all active subrecipient agreements to verify compliance with FFATA requirements. Supporting documentation will be properly maintained in subrecipient files. DGCD will document reporting status, due dates, and completion dates in a standardized FFATA tracking log and checklist. DGCD’s Compliance Division will perform periodic oversight reviews to verify adherence to FFATA requirements and ensure corrective action is taken promptly if reporting deficiencies are identified. Additionally, the Controller’s Office will establish a periodic review process to ensure all City Departments are adhering to FFATA requirements.

View Audit 415738

Finding 1241660 (2025-001)

Material Weakness 2025

Congregation Bais Malka Inc.

NY

Internal Control / Segregation of Duties Reporting Significant Deficiency

The Organization has begun implementing the above-mentioned recommendations. The Organization will ensure that it has a working compliance calendar to assist in meeting the reporting deadline. Additionally, the Organization has engaged the audit firm for their upcoming fiscal year-end, and the audit...

The Organization has begun implementing the above-mentioned recommendations. The Organization will ensure that it has a working compliance calendar to assist in meeting the reporting deadline. Additionally, the Organization has engaged the audit firm for their upcoming fiscal year-end, and the audit firm has put it on its calendar to begin the audit process well in advance. The Organization’s board of directors has agreed to oversee the auditing and reporting processes to a greater extent. With these actions, the Organization expects to comply with the Uniform Guidance for single audits deadline for the fiscal year end June 30, 2025. Mr. Benjamin Klein, executive director, has been designated to monitor the plan of corrective action for this finding. He can be reached at 845-354-9500.

View Audit 415727

Finding 1241653 (2025-005)

Material Weakness 2025

Agricultural Enterprises Development Administration

PR

Reporting Eligibility Significant Deficiency § 200.512

FINDING NUMBER 2025-005 AUDITOR’S DESCRIPTION WIC/SENIORS FARMERS’ NUTRITION PROGRAMS: REPORTING CONDITION The Data Collection Form and related reporting package for the fiscal year ended June 30, 2025, were not submitted to the Federal Audit Clearinghouse within the timeframe required by 2 CFR Part...

FINDING NUMBER 2025-005 AUDITOR’S DESCRIPTION WIC/SENIORS FARMERS’ NUTRITION PROGRAMS: REPORTING CONDITION The Data Collection Form and related reporting package for the fiscal year ended June 30, 2025, were not submitted to the Federal Audit Clearinghouse within the timeframe required by 2 CFR Part 200.512. This matter represents a repeat finding from the prior year. AUDITOR’S RECOMENDATION We recommend that AEDA establish a formal Single Audit reporting calendar and designate responsible personnel to coordinate the audit process before year-end. Management should establish deadlines for closing the accounting records, completing subsidiary ledgers and reconciliations, preparing the Schedule of Expenditures of Federal Awards and supporting schedules, responding to auditor requests, and reviewing and submitting the Data Collection Form and reporting package within the federal deadline. CORRECTIVE ACTION PLAN AEDA has implemented a new accounting system and is reorganizing its personnel structure to ensure that all accounting information is complete, accurate, and available on a timely basis, enabling the organization to successfully complete future Single Audits within established deadlines. LEADS PERSONS ACCOUNTABLE FOR ACTIONS ITEM COMPLETION Elmer Perez, Administrator of AEDA, and Yimaries Méndez, Finance Director of AEDA. DELIVERABLE June 30, 2025 EVIDENCE INCLUDED YES/NO NO TARGET COMPLETION DATE Finding 2025-005 should be corrected for the Single Audit pertaining to the State fiscal year ending on 6/30/2027.

View Audit 415714

Finding 1241645 (2025-001)

Material Weakness 2025

Metropolitan Energy Center

MO

Reporting Subrecipient Monitoring § 200.512

2025-001 Program/Department: Diesel Emission Reduction Act (DERA) National Grants and Energy Efficiency and Renewable Energy Information Dissemination, Outreach, Training and Technical Analysis/Assistance Federal Agency: Environmental Protection Agency and Department of Energy AL #: 66.039 and 81.11...

2025-001 Program/Department: Diesel Emission Reduction Act (DERA) National Grants and Energy Efficiency and Renewable Energy Information Dissemination, Outreach, Training and Technical Analysis/Assistance Federal Agency: Environmental Protection Agency and Department of Energy AL #: 66.039 and 81.117 Federal Award Identification Number and Year: Various – See SEFA Pass-through Entity: Various – See SEFA Type of Finding: Other Matters Internal Control Impact: N/A Finding: Management did not provide all of the necessary supporting documentation to complete the audit and submit the reporting package to the Federal Audit Clearinghouse by the due date. Status: Our December 31, 2025 financial statements and Independent Auditor’s Reports were finalized and available for issuance on October 29, 2026. Corrective Action Plan: The Auditor will initiate the Federal Audit Clearinghouse submission, and management will complete it on or before November 6, 2026. Metropolitan Energy Center management will conduct trainings and will ensure any single audit reporting package for FY26 and subsequent years, if required, are completed prior to August 31. Person Responsible for Implementation: Kelly Gilbert, Executive Director, kelly.gilbert@metroenergy.org, (816) 812-9772.

View Audit 415711

Finding 1241642 (2025-004)

Material Weakness 2025

Forrest County, Mississippi

MS

Reporting Internal Control / Segregation of Duties § 200.303

During review of Coronavirus State and Local Fiscal Recovery Fund (SLFRF) expenditures, the County identified and corrected certain reporting classifications. No expenditure was added to or removed from the program. The County will perform additional review procedures for future submissions. Name of...

During review of Coronavirus State and Local Fiscal Recovery Fund (SLFRF) expenditures, the County identified and corrected certain reporting classifications. No expenditure was added to or removed from the program. The County will perform additional review procedures for future submissions. Name of Responsible Person: Board of Supervisors of Forrest County, Mississippi Expected Date of Completion: Implemented for the corrected SLFRF reporting.

View Audit 415703

Finding 1241627 (2025-003)

Material Weakness 2025

Crosspurpose

CO

Allowable Costs / Cost Principles Reporting § 200.403 § 200.404 § 200.405 § 200.413

Finding 2025-003 AL number: 10.561 AL title: Supplemental Nutrition Assistance Program Federal award or contract: FFY 2026 SNAP Employment and Training Contract No. 26 IHGA 202955 Questioned costs: None Torch Technology Solutions, a subsidiary of CrossPurpose, and charged amounts to the FFY 2026 SNA...

Finding 2025-003 AL number: 10.561 AL title: Supplemental Nutrition Assistance Program Federal award or contract: FFY 2026 SNAP Employment and Training Contract No. 26 IHGA 202955 Questioned costs: None Torch Technology Solutions, a subsidiary of CrossPurpose, and charged amounts to the FFY 2026 SNAP Employment and Training Program for compliance and reporting, finance and cost allocation, program delivery, technology infrastructure, and participant-support functions. The Organization did not retain sufficient documentation to demonstrate that the amounts billed represented actual costs incurred during the applicable periods, were necessary and reasonable for the federal award, were directly attributable to program administration or participant services, or were allocated using a reasonable and documented methodology. Torch Technology Solutions also lacked sufficient documentation for certain subcontractor and service-provider expenditures. Available records did not adequately demonstrate the services provided, when they were performed, the benefit to the federal program, or the allocation methodology. Certain gift card payments also lacked documentation showing participant need, redemption, and allowable program-related use. The Colorado Department of Human Services identified similar concerns in its fiscal management evaluation. Management recorded a liability for the repayment obligation, reversed the related program revenue, and excluded the associated costs from the Schedule of Expenditures of Federal Awards. The Organization subsequently terminated its Employment First Program contract with Torch Technology Solutions, terminated the staff, and ceased operations. The Organization returned $283,425 requested in connection with the State's findings. Corrective Action Plan Management agrees with the finding. CrossPurpose has developed a process to review any future reimbursement requests submitted by subsidiaries and require supporting documentation showing that the costs are allocable, reasonable, necessary, and connected to benefits provided to eligible participants. For Torch Technology Solutions, all employees were terminated effective May 15, 2026, and the Organization terminated the subsidiary's contract with the Department. The Organization fulfilled the Department's requests arising from the fiscal management evaluation, returned $283,425, and ceased all operations of the subsidiary.The closure of Torch Technology Solutions is disclosed as a subsequent event in the notes to the financial statements. As of now, there are no existing grant awards held by subsidiaries. Anticipated completion date: May 15, 2026

View Audit 415691

Finding 1241623 (2025-004)

Material Weakness 2025

Steelton-Highspire School District

PA

Subrecipient Monitoring Cash Management Reporting

The District agrees with the finding and the business manager has resumed taking on responsibility for submitting quarterly reports in a timely manner. The District maintains a listing of due dates for reports to assist in monitoring when reports are due to external agencies. The business manager an...

The District agrees with the finding and the business manager has resumed taking on responsibility for submitting quarterly reports in a timely manner. The District maintains a listing of due dates for reports to assist in monitoring when reports are due to external agencies. The business manager and staff are developing and implementing procedures to correct past mistakes, establish efficient processes and ensure all transactions are correctly posted to the proper period, fund, function and account.

View Audit 415665

Finding 1241621 (2025-006)

Material Weakness 2025

Wagoner County

OK

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.1 § 200.303

The Clerk will ensure all reports are accurately submitted

View Audit 415664

Finding 1241599 (2025-004)

Material Weakness 2025

Jefferson Parish

LA

Procurement, Suspension & Debarment Reporting Subrecipient Monitoring

Management acknowledges this repeat finding and the importance of full compliance with federal reporting requirements. While progress has been made, additional monitoring is still necessary to fully remediate this issue. As part of these efforts, Jefferson Parish has established a process to monitor...

Management acknowledges this repeat finding and the importance of full compliance with federal reporting requirements. While progress has been made, additional monitoring is still necessary to fully remediate this issue. As part of these efforts, Jefferson Parish has established a process to monitor the timely submission of reports in compliance with federal requirements. While this is a repeat finding, the prior finding was identified midway through the 2025 fiscal year, so we expect that this finding to be resolved for the fiscal year 2026. Management considers the corrective action to be substantially implemented. Ongoing review has been put into place to confirm continued compliance. Chief Administrative Assistant Nicole Thompson will continue to monitor the submission of timely reports in compliance with federal requirements.

View Audit 415643

Finding 1241587 (2025-001)

Material Weakness 2025

Corporacion Educativa Ramon Barquin Dba American Military Academy

PR

Internal Control / Segregation of Duties Subrecipient Monitoring Cash Management § 200.303

To counter this situation, CERB is in the process of changing the inhouse personnel in charge of the FEMA grants and the COR3 DRS portal. The person assigned will be properly trained in the use of DRS application and will be attending a grant seminar to better acquaint themselves with processes and ...

To counter this situation, CERB is in the process of changing the inhouse personnel in charge of the FEMA grants and the COR3 DRS portal. The person assigned will be properly trained in the use of DRS application and will be attending a grant seminar to better acquaint themselves with processes and compliance under 2 U.S. Code of Federal Regulations Part 200. Another internal control that will be established is the contracting of an outside expert in FEMA funding to scrutinize present files kept at CERB headquarters and complete any lacking documentation so that future audits can be addressed successfully. As to the $72,756 CERB accepts this finding which has been corrected by returning the funds to the FEMA Public Assistance account after year-end. Regarding the $130,620, CERB has retained an outside accounting resource to double check the correctness of accounting classification, as a counterbalance and internal control method.

View Audit 415628

Finding 1241584 (2025-002)

Material Weakness 2025

Liberty Terrace Apartments

IN

HUD Housing Programs Subrecipient Monitoring Reporting

Finding 2025-002: The Corporation submitted the owner certified financial report within ninety (90) days following the end of the fiscal year ending December 31, 2025, however did not furnish HUD with a complete audited financial report within nine (9) months following the end of the fiscal year end...

Finding 2025-002: The Corporation submitted the owner certified financial report within ninety (90) days following the end of the fiscal year ending December 31, 2025, however did not furnish HUD with a complete audited financial report within nine (9) months following the end of the fiscal year ending December 31, 2025. Comments on the Finding and Each Recommendation: The annual financial statements should be issued in a timely manner pursuant to the time frame set forth by HUD. Action(s) Taken or Planned on the Finding: Management concurs with the finding and recommendation. The audited financial statements have been submitted to HUD.

View Audit 415611

Finding 1241583 (2025-001)

Material Weakness 2025

Liberty Terrace Apartments

IN

Subrecipient Monitoring HUD Housing Programs Reporting

Finding 2025-001: For the year ended December 31, 2025, the Corporation did not make the required second mortgage payment of $17,003. Comments on the Finding and Each Recommendation: The Corporation should make the required payment. Action(s) Taken or Planned on the Finding: Management concurs. On S...

Finding 2025-001: For the year ended December 31, 2025, the Corporation did not make the required second mortgage payment of $17,003. Comments on the Finding and Each Recommendation: The Corporation should make the required payment. Action(s) Taken or Planned on the Finding: Management concurs. On September 25, 2026, the Corporation made the required payment.

View Audit 415611

Finding 1241582 (2025-003)

Material Weakness 2025

Better Living for Citizens, Inc.

MI

Subrecipient Monitoring Reporting

Finding 2025-003: During the year ended December 31, 2025, the Corporation failed to make the required deposits to the reserve for replacement account. The Corporation made two months of required deposits and the repayment of the withdrawal from 2024 totaling $21,834. The Corporation did not make de...

Finding 2025-003: During the year ended December 31, 2025, the Corporation failed to make the required deposits to the reserve for replacement account. The Corporation made two months of required deposits and the repayment of the withdrawal from 2024 totaling $21,834. The Corporation did not make deposits totaling $24,400 for the current year. Comments on the Finding and Each Recommendation: Management should transfer $24,400 into the reserve for replacement from the operating cash account. Action(s) Taken or Planned on the Finding: Management concurs that monthly deposits totaling $24,400 were not made during 2025. During the same year the Corporation deposited $21,834 to the reserve, consisting of two monthly deposits totaling $4,880 and the $16,954 repayment of the 2024 withdrawal, bringing the reserve balance to $327,507 at December 31, 2025. The missed deposits resulted from operating cash shortfalls: revenue under the PRAC contract was flat while payroll, payroll taxes, and insurance costs increased substantially in 2025. On September 17, 2026, the Corporation deposited $24,400 into the reserve for replacements, fully funding the delinquent 2025 deposits, and monthly deposits for 2026 are current. The Corporation is also submitting a budget-based rent adjustment request under the PRAC to restore positive operating cash flow.

View Audit 415610

Finding 1241581 (2025-002)

Material Weakness 2025

Better Living for Citizens, Inc.

MI

Subrecipient Monitoring Reporting

Finding 2025-002: The Corporation did not maintain resident security deposits in an amount equal or greater than resident security deposits liabilities at all times during the year ended December 31, 2025. At December 31, 2025, the resident security deposit account was underfunded by $105. Comments ...

Finding 2025-002: The Corporation did not maintain resident security deposits in an amount equal or greater than resident security deposits liabilities at all times during the year ended December 31, 2025. At December 31, 2025, the resident security deposit account was underfunded by $105. Comments on the Finding and Each Recommendation: Management should ensure the security deposit account is adequately funded and transfer funds, if necessary, from the operating account to adequately fund the security deposit account. Action(s) Taken or Planned on the Finding: Management concurs. The shortfall was reduced from $557 at December 31, 2024 to $105 at December 31, 2025. The Corporation transferred $105 from the operating account to the resident security deposit account on September 17, 2026, fully funding the account. The security deposit account is reconciled to the tenant deposit ledger monthly as part of the close, and any variance is transferred in the same month.

View Audit 415610

Corrective Action Plans

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