Corrective Action Plans

Finding 1226979 (2025-001)

Material Weakness 2025

Semcac

MN

Reporting § 200.510 § 200.512 § 200.520

Department of Health and Human Services Semcac respectfully submits the following corrective action plan for the year ended 09/30/2025. BerganKDV, Ltd. 220 Park Ave S St. Cloud, MN 56301 Audit Period: 10/1/2024 – 9/30/2025 The finding from the 9/30/2025 schedule of findings and questioned costs is d...

Department of Health and Human Services Semcac respectfully submits the following corrective action plan for the year ended 09/30/2025. BerganKDV, Ltd. 220 Park Ave S St. Cloud, MN 56301 Audit Period: 10/1/2024 – 9/30/2025 The finding from the 9/30/2025 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the numbers assigned in the schedule. FINDINGS – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Federal Agency: Various Assistance Listing Number: Multiple Compliance Requirement: Reporting Finding 2025-001: Submission of the Audit Reporting Package and Data Collection Form (Repeat of Finding 2024-001 Submission of the Audit Reporting Package and Data Collection Form Recommendation: We recommend that management address the lack of capacity in the finance department and monitor the year-end closing schedule for a timely audit reporting package and data collection form to ensure compliance with federal deadlines. Action Taken: We agree with the auditors’ comments, the following action will be taken to address the situation. As Semcac continues to grow and compliance requirements increase, we have evaluated staffing capacity within the Fiscal Department and added a management-level position in fiscal year 2026. Semcac has also contracted with an outsourced accounting firm to strengthen internal controls, improve processes and procedures, support adherence to the year-end closing schedule, and help ensure timely submission of the audit reporting package. If the Department of Health and Human Services have questions regarding this plan, please call Adam Larson at (507) 864-8218.

View Audit 409160

Finding 1226972 (2025-004)

Material Weakness 2025

Operation Hope of Fairfield, Inc.

CT

Questioned Costs Subrecipient Monitoring Reporting § 200.512

Operation Hope has retained a new audit firm and developed a new schedule to ensure future audits are completed in a timely manner and reports are submitted by the due date.

View Audit 409146

Finding 1226936 (2025-013)

Material Weakness 2025

County of Essex, Virginia

VA

Questioned Costs Reporting Internal Control / Segregation of Duties § 200.512

We agree with the auditor's comments. The delay was a result of turnover in personnel and the additional workload of school finances. Corrective action has been taken and County finance personnel are working to ensure this delay does not occur again in the future.

View Audit 409120

Finding 1226485 (2025-001)

Material Weakness 2025

Beacon Health System, Inc.

IN

Subrecipient Monitoring Eligibility Reporting

The Corporation screens applicants for eligibility by following the state of Indiana guidelines as provided through the INWIC system used to enter, track, and store information about applicants. Based on guidance contained in 7 CFR Section 246, states were encouraged to move to a paperless system. S...

The Corporation screens applicants for eligibility by following the state of Indiana guidelines as provided through the INWIC system used to enter, track, and store information about applicants. Based on guidance contained in 7 CFR Section 246, states were encouraged to move to a paperless system. Specifically, federal guidance contained in 7CFR 246.7 (i)(4) and (5)(i) outlines acceptable documentation to be included on certification forms as “a description of the document(s) used to determine residency and identity or a copy of the document(s) used or the applicant’s written statement when no documentation exists,” and “a description of the document(s) used to determine income eligibility or a copy of the document(s) in the file.” The State of Indiana has followed that guidance and does not require the Corporation to retain copies of the WIC applicant’s proof of eligibility. Therefore, the auditors were not able to test internal controls over compliance or compliance over the eligibility compliance requirement through re-performance and have issued a qualified opinion based on the scope limitations. Compliance with State of Indiana participant eligibility requirements is the responsibility of Rebecca Lies, WIC Coordinator. As the Corporation follows the State of Indiana’s paperless system as described above, no further corrective action will be taken.

View Audit 409117

Finding 1226479 (2025-005)

Material Weakness 2025

Reach Community Development, Inc.

OR

Eligibility Questioned Costs HUD Housing Programs

Once REACH Asset Management Team was notified of this audit finding, our Asset Management team communicated this finding to Ad-West. They would set up a new process to ensure the reporting of HOME units, HOME unit types, and compliance would be met on all HOME units.

View Audit 409109

Finding 1226462 (2025-002)

Material Weakness 2025

City of Marion

SC

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting

The City relies heavily on supervisory oversight. The City has in place many internal controls to help reduce risks of financial reporting objectives and provide safeguards for the City's assets. Some of the controls are a supervisor has to review and sign off on all bank statements and reconciliati...

The City relies heavily on supervisory oversight. The City has in place many internal controls to help reduce risks of financial reporting objectives and provide safeguards for the City's assets. Some of the controls are a supervisor has to review and sign off on all bank statements and reconciliations, and any journal entries. All accounts payable invoices and reports are reviewed by at least two people.

View Audit 409088

Finding 1226447 (2025-005)

Material Weakness 2025

Phoenix Indian Center

AZ

Allowable Costs / Cost Principles Reporting § 200.403 § 200.502 § 200.510

A designated Finance staff member with knowledge of the Uniform Guidance requirements will be responsible for overseeing SEFA preparation for each fiscal year-end. A grant-by-grant SEFA reconciliation will be completed prior to yearend close, with particular attention to period-end cutoff. The SEFA ...

A designated Finance staff member with knowledge of the Uniform Guidance requirements will be responsible for overseeing SEFA preparation for each fiscal year-end. A grant-by-grant SEFA reconciliation will be completed prior to yearend close, with particular attention to period-end cutoff. The SEFA will be independently reviewed by the Finance Director and compared to grant expenditure reports before the audit commences. Management will engage its external accountants earlier in the year-end close process.

View Audit 409082

Finding 1226446 (2025-004)

Material Weakness 2025

Phoenix Indian Center

AZ

Reporting Significant Deficiency Internal Control / Segregation of Duties § 200.512

At the start of each fiscal year, the Finance Director will prepare a submission timeline working backward from the March 31 FAC deadline, establishing interim milestones for year-end close, draft financial statement preparation, management review, and auditor fieldwork. Progress against the submiss...

At the start of each fiscal year, the Finance Director will prepare a submission timeline working backward from the March 31 FAC deadline, establishing interim milestones for year-end close, draft financial statement preparation, management review, and auditor fieldwork. Progress against the submission timeline will be monitored by the CEO and reported to the Board of Directors on a quarterly basis. Management will engage its external auditors earlier in the process and ensure adequate finance staffing is maintained prior to the fiscal yearend close.

View Audit 409082

Finding 1226441 (2025-003)

Material Weakness 2025

City of Clarksville

TX

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303 § 200.512

The City of Clarksville, Texas agrees with this repeated finding, which corresponds to prior-year Finding 2024-003 and remains open. Management will maintain an audit and federal-reporting calendar that identifies the Federal Audit Clearinghouse submission deadline as the earlier of 30 calendar days...

The City of Clarksville, Texas agrees with this repeated finding, which corresponds to prior-year Finding 2024-003 and remains open. Management will maintain an audit and federal-reporting calendar that identifies the Federal Audit Clearinghouse submission deadline as the earlier of 30 calendar days after receipt of the auditor’s report or nine months after fiscal year-end. The Mayor and designated accounting personnel will assign responsibility for audit coordination and FAC submission, close the accounting records timely, promptly provide requested records, monitor unresolved audit items, and coordinate with the auditor throughout the audit cycle. Management will document the person responsible for submitting the reporting package and notifying the pass-through agency, as applicable. Evidence of FAC submission and acceptance, agency notification, and related correspondence will be retained in the federal-award compliance files. These procedures are intended to improve financial-record readiness, governance continuity, and timely completion and submission of the Single Audit reporting package

View Audit 409058

Finding 1226428 (2025-001)

Material Weakness 2025

Valley Behavioral Health, Incorporated and Affiliates

UT

Reporting Significant Deficiency § 200.502

Corrective Action Plan FINDING - 2025-001 - Federal Award Program Name: 93.958 Senior Services Criteria: Federal awards are required to be reported on the Schedule of Expenditures of Federal Awards (SEFA) when expenditures are incurred (2CFR Part 200). Condition: The Organization had a federal award...

Corrective Action Plan FINDING - 2025-001 - Federal Award Program Name: 93.958 Senior Services Criteria: Federal awards are required to be reported on the Schedule of Expenditures of Federal Awards (SEFA) when expenditures are incurred (2CFR Part 200). Condition: The Organization had a federal award received in a prior year that was not originally included on the SEFA. Cause of Condition: The Organization did not have adequate procedures in place to identify all federal awards and ensure they were properly reflected on the SEFA. Potential Effect of Condition: The Organization’s federal award expenditures not being included in the audited SEFA. Views of Responsible Officials: Management has acknowledged the finding and added the award expenditures to the SEFA. Corrective Action: The Controller will implement formal federal grant management policies and procedures to ensure all federal awards are properly identified, tracked, and reported on the SEFA in accordance with 2 CFR Section 200.502. Key actions include: - Developing and implementing a written federal grant and loan management policy, subject to Board approval. - Establishing and maintaining a centralized electronic repository of all federal grant and loan documentation, including key award details necessary for SEFA reporting. - Providing training to accounting and program staff responsible for identifying and tracking federal awards. - Performing quarterly reviews of the federal awards repository to ensure completeness and accuracy of information used in SEFA preparation. - The Controller will perform quarterly reviews, and the CFO will review and approve the completeness of the federal awards listing. Procedures will be implemented immediately and in place for the next SEFA reporting cycle.

View Audit 409042

Finding 1226427 (2025-004)

Material Weakness 2025

City of Kendallville

IN

Reporting Internal Control / Segregation of Duties § 200.303

CORRECTIVE ACTION PLAN FINDING 2025-004 Finding Subject: Contact Person Responsible for Corrective Action: Jeremy McKinley, Fire Chief Contact Phone Number and Email Address: 260-302-6383 Views of Responsible Officials: Option 1: “We concur with the finding.” Description of Corrective Action Plan: T...

CORRECTIVE ACTION PLAN FINDING 2025-004 Finding Subject: Contact Person Responsible for Corrective Action: Jeremy McKinley, Fire Chief Contact Phone Number and Email Address: 260-302-6383 Views of Responsible Officials: Option 1: “We concur with the finding.” Description of Corrective Action Plan: The grant administrator will draft the semi-annual grant performance reports and email them to the Fire Chief or Deputy Fire Chief for approval before the grant administrator submits them on behalf of the City regardless of the dollar amount. Anticipated Completion Date: July 16, 2026 INDIANA

View Audit 409041

Finding 1226423 (2025-005)

Material Weakness 2025

City of North Miami Beach

FL

Reporting Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.512

SD 2025-005 REPORTING - DATA COLLECTION FORM (REPEAT FINDING PREVIOUSLY REPORTED AS - SD2024-005) Current Year Corrective Actio1t Response: Management concurs with the findings . Management will implement policie s and procedures as per the auditor' s recommendation.

View Audit 409026

Finding 1226414 (2025-001)

Material Weakness 2025

City of North Miami Beach

FL

Reporting

MW2025-001- INACCURATE REPORTING OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AW ARDS Current Year Corrective Action Response: Management concurs with the findings. Management recognizes the importance of ensuring all federal awards are accurately reported , in accordance with Uniform Guidance require...

MW2025-001- INACCURATE REPORTING OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AW ARDS Current Year Corrective Action Response: Management concurs with the findings. Management recognizes the importance of ensuring all federal awards are accurately reported , in accordance with Uniform Guidance requirements. The City will establish formal procedures to review federal/state grant award agreements and loan documentation for compliance and reporting requirements to ensure awards and loans are properly reported . In addition, the City will provide responsible staff appropriate training to strengthen their knowledge and understanding of Uniform Guidance reporting requirements.

View Audit 409026

Finding 1226338 (2025-002)

Material Weakness 2025

Retired Steelworkers Housing and Health Development Corporation

FL

HUD Housing Programs Reporting Eligibility

FINDING No. 2025-002: Section 236 Interest Reduction Payments, ALN 14.103 Recommendation: Management should implement procedures to ensure the Project verifies tenant eligibility through the EIV system. Action Taken: Staff training has been provided with additional HUD training inclusive of EIV repo...

FINDING No. 2025-002: Section 236 Interest Reduction Payments, ALN 14.103 Recommendation: Management should implement procedures to ensure the Project verifies tenant eligibility through the EIV system. Action Taken: Staff training has been provided with additional HUD training inclusive of EIV reporting and tenant file maintenance. If the audit Oversight Agency has questions regarding these plans, please call Irene Phillips at 954-835-9200. Sincerely yours, Irene Phillips CFO

View Audit 408975

Finding 1226337 (2025-001)

Material Weakness 2025

Retired Steelworkers Housing and Health Development Corporation

FL

HUD Housing Programs Reporting

Oversight Agency for Audit, Retired Steelworkers Housing and Health Development 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...

Oversight Agency for Audit, Retired Steelworkers Housing and Health Development 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 236 Interest Reduction Payments, ALN 14.103 Recommendation: Management should implement procedures to ensure the correct amount is deposited into the replacement reserve account each month. Action Taken: We are researching the underfunding and will ensure the RR account is fully funded on a monthly basis. New procedures have been implemented to review the deposits each month to ensure amounts are proper.

View Audit 408975

Finding 1226312 (2025-005)

Material Weakness 2025

Sangamon County, Illinois

IL

Questioned Costs Reporting Significant Deficiency § 200.303

County department personnel changes have been implemented which address this deficiency. Additional training from the Auditor’s office and state grantors has occurred and will continue for staff in departments that receive federal and state awards.

View Audit 408963

Finding 1226292 (2025-006)

Material Weakness 2025

City of Blackduck

MN

Questioned Costs Subrecipient Monitoring Material Weakness

Recommendation: We recommend that the City implement controls over USDA reports to ensure that they are reviewed prior to submission. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The City will work to ensure t...

Recommendation: We recommend that the City implement controls over USDA reports to ensure that they are reviewed prior to submission. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The City will work to ensure that the management reports are reviewed prior to submission. Name of the contact person responsible for corrective action: Christina Regas, City Administrator Planned completion date for corrective action plan: December 31, 2026.

View Audit 408960

Finding 1226288 (2025-001)

Material Weakness 2025

City of Greensburg

IN

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

FINDING 2025-001 Finding Subject: COVID-19 Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Amy Borns Contact Phone Number and Email Address: 812-663-8582 ext 1 & aborns@greensburg.in.gov Views of Responsible Officials: We concur with th...

FINDING 2025-001 Finding Subject: COVID-19 Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Amy Borns Contact Phone Number and Email Address: 812-663-8582 ext 1 & aborns@greensburg.in.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: When the SLFRF Compliance report is completed by the Clerk-Treasurer, either the Accounts Payable/Receivable Specialist or the Personnel Administrator will double check it and sign off (or send an email) concurring with the report. Anticipated Completion Date: This will be completed no later than April 30, 2027.

View Audit 408956

Finding 1226265 (2025-004)

Material Weakness 2025

TOWN OF DUSON TOWN HALL

LA

Reporting Internal Control / Segregation of Duties

Criteria In accordance with 31 CFR Sections 35.4(c), the Town should provide an annual report detailing the accounting for the use of the federal award program funds. In addition, the report should be completed and submitted by April 30th of the folllowing year. Condition The Town's annual report di...

Criteria In accordance with 31 CFR Sections 35.4(c), the Town should provide an annual report detailing the accounting for the use of the federal award program funds. In addition, the report should be completed and submitted by April 30th of the folllowing year. Condition The Town's annual report did not reconcile with the amounts recorded in its general ledger. Cause The Town does not have adequate controls and procedures over reporting. Effect The Town's annual report did not reconcile to the total amount expended. Recommendation The Town should review their established policies and procedures and make any necessary changes to ensure an effective control environment. Management's Corrective Action Plan The Town will review their established policies and procedures and make any necessary changes to ensure an effective control environment.

View Audit 408949

Finding 1226264 (2025-003)

Material Weakness 2025

TOWN OF DUSON TOWN HALL

LA

Reporting Internal Control / Segregation of Duties

Criteria In accordance with 31 CFR Sections 35.4(c), the Town should provide an annual report detailing the accounting for the use of the federal award program funds. In addition, the report should be completed and submitted by April 30th of the folllowing year. Condition The Town's annual report di...

Criteria In accordance with 31 CFR Sections 35.4(c), the Town should provide an annual report detailing the accounting for the use of the federal award program funds. In addition, the report should be completed and submitted by April 30th of the folllowing year. Condition The Town's annual report did not reconcile with the amounts recorded in its general ledger. Cause The Town does not have adequate controls and procedures over reporting. Effect The Town's annual report did not reconcile to the total amount expended. Recommendation The Town should review their established policies and procedures and make any necessary changes to ensure an effective control environment. Management's Corrective Action Plan The Town will review their established policies and procedures and make any necessary changes to ensure an effective control environment.

View Audit 408949

Finding 1226251 (2025-001)

Material Weakness 2025

Randolph County, Illinois

IL

Reporting Internal Control / Segregation of Duties

Finding Type: Material Weakness in Compliance and Internal Control over Compliance Finding No. 2025-01 Recommendation: Management should implement procedures to ensure an accurate schedule of expenditures of federal awards with a corresponding reconciliation to the accrual basis trial balance. It is...

Finding Type: Material Weakness in Compliance and Internal Control over Compliance Finding No. 2025-01 Recommendation: Management should implement procedures to ensure an accurate schedule of expenditures of federal awards with a corresponding reconciliation to the accrual basis trial balance. It is recommended that management establish and enforce review and approval procedures related to the schedule of expenditures of federal awards and the accrual basis trial balance. Responsible Official: David M. Holder, Chairman Corrective Action Plan: The County acknowledges the importance regarding the accuracy of the schedule of expenditures of federal awards and corresponding reconciliation to the accrual basis trial balance. The County is considering providing additional training for current personnel along with the employment of additional personnel with suitable knowledge, skills, and experience to fulfill the fund-based accounting duties and other fiscal duties of the Treasurer’s office. Planned completion date for corrective action plan: Fiscal year 2026

View Audit 408913

Finding 1226249 (2025-001)

Material Weakness 2025

American Physical Society

MD

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking Questioned Costs § 200.303 § 200.403

Finding Number: 2025-001 Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Corrective Action Plan In March 2026, following the recognition of the issue, APS immediately conducted a comprehensive review of all payroll related charges, and promptly corrected t...

Finding Number: 2025-001 Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Corrective Action Plan In March 2026, following the recognition of the issue, APS immediately conducted a comprehensive review of all payroll related charges, and promptly corrected the accounting records and updated the SEFA to remove all duplicated costs. In response to this finding, APS implemented additional policies, procedures, and controls to strengthen oversight of payroll processing and grant expenditure reporting. Specifically, APS established a documented review process to identify and investigate duplicate payroll postings prior to and following the upload of payroll data to the general ledger and grant accounting records. In addition, APS enhanced its system change management procedures to ensure that future modifications or upgrades to payroll and grants management systems include validation testing of key controls before implementation. APS will continue to review payroll charges and grant expenditures regularly and maintain documentation of all review and reconciliation activities to ensure costs charged to federal awards are accurate, allowable, properly supported, and recorded only once. APS implemented the corrective action plan on April 30, 2026. Management's contact responsible for the implementation of the Corrective Action Plan: Name: Jane Hopkins Gould Position: Chief Financial & Operating Officer Telephone number: 301-209-3276

View Audit 408898

Finding 1226239 (2025-001)

Material Weakness 2025

Neighborhood Housing Services of the Black Hills, Inc.

SD

Reporting

Finding #2025-001 – Preparation of Consolidated Financial Statements and Schedule of Expenditures of Federal Awards (SEFA) and Audit Adjustments Responsible Individuals: Mike Walker (CEO) and Kathleen Burnham (Accountant) Corrective Action Plan: It is more cost effective for the Organization to hire...

Finding #2025-001 – Preparation of Consolidated Financial Statements and Schedule of Expenditures of Federal Awards (SEFA) and Audit Adjustments Responsible Individuals: Mike Walker (CEO) and Kathleen Burnham (Accountant) Corrective Action Plan: It is more cost effective for the Organization to hire Ketel Thorstenson, LLP, a public accounting firm, to prepare the full disclosure consolidated financial statements as a part of the annual audit process. Management of the Organization has reviewed the consolidated financial statements and SEFA prepared by Ketel Thorstnson, LLP. The consolidated financial statements and SEFA have been compared and reconciled to the internal records maintained by the Organization. Management and the board of directors have been given adequate opportunity to ask questions regarding the consolidated financial statements and note disclosures and have received sufficient response from the auditors prior to final publication of the audited consolidated financial statements and SEFA. Management is satisfied that appropriate actions have been taken to allow them to take responsibility for the consolidated financial statements. Anticipated Completion Date: Ongoing

View Audit 408881

Finding 1226237 (2025-001)

Material Weakness 2025

Western Montana Mental Health Center & Affiliate

MT

Questioned Costs Reporting Significant Deficiency

WMMHC issued additional review procedures for grant expenditures to all WMMHC employees on July 27, 2026, to ensure timely filing and compliance with federal requirements.

View Audit 408880

Finding 1226194 (2025-001)

Material Weakness 2025

Opening Doors, Inc.

CA

Reporting

Auditor's Recommendation: Strengthen controls over reporting by implementing formal procedures to (1} document and retain evidence of supervisory review and approval, (2) maintain copies of all submitted reports and supporting documentation in a centralized location, and (3) establish monitoring pro...

Auditor's Recommendation: Strengthen controls over reporting by implementing formal procedures to (1} document and retain evidence of supervisory review and approval, (2) maintain copies of all submitted reports and supporting documentation in a centralized location, and (3) establish monitoring procedures to ensure reports are submitted timely and submission evidence is retained for audit purposes. Management Response: While the findings do not result in any questioned costs, ODI does not disagree and appreciates the recommendation. Corrective Action: These findings are largely a result of staff turnover. In addition to the auditor's recommendations above, ODI will implement a plan to cross-train staff and prepare desk procedures to document the steps required to prepare, review, submit, and retain the reports. Responsible Personnel: Mark Dawson, COO Implementation Date: Immediate implementation

View Audit 408833

Corrective Action Plans

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