Corrective Action Plans

Finding 1224428 (2023-027)

Material Weakness 2023

Commonwealth of the Northern Mariana Islands

MP

Allowable Costs / Cost Principles Reporting

Finding No.: 2023-027 AL Program: COVID-19 21.023 – Emergency Rental Assistance Program Area: Allowable Costs/Cost Principles Questioned Costs: $53,435 Contact Person(s): Epiphanio Cabrera, Jr., Grants Administrator, OGM-SC Corrective Action Plan: Condition 1a: The Office of Grants Management (OGM) ...

Finding No.: 2023-027 AL Program: COVID-19 21.023 – Emergency Rental Assistance Program Area: Allowable Costs/Cost Principles Questioned Costs: $53,435 Contact Person(s): Epiphanio Cabrera, Jr., Grants Administrator, OGM-SC Corrective Action Plan: Condition 1a: The Office of Grants Management (OGM) respectfully disagrees with this finding. Under the U.S. Department of the Treasury's Emergency Rental Assistance Program 2 (ERA2), states, territories, and other eligible grantees were expressly authorized to pay rental arrears (past-due rent) on behalf of eligible households. Treasury guidance states that ERA2 financial assistance could include current rent, rental arrears (back rent), utility and home energy costs, utility and home energy arrears, and other housing-related expenses. Finding No.: 2023-027, continued AL Program: COVID-19 21.023 – Emergency Rental Assistance Program Area: Allowable Costs/Cost Principles Questioned Costs: $53,435 Contact Person(s): Epiphanio Cabrera, Jr., Grants Administrator, OGM-SC Corrective Action Plan: Treasury's FAQ further clarifies that: A grantee may provide assistance for rental arrears that accrued on or after March 13, 2020. A grantee was not required to pay the full amount of arrears and could structure the program to provide partial assistance if desired. For the CNMI specifically, if your ERA2 award was active during the period of performance, payment of eligible rental arrears was an allowable use of funds. However, Treasury closed the ERA2 program on September 30, 2025, and ERA2 funds may no longer be used to provide new rental assistance, including rental arrears. As a practical matter, many ERA programs adopted policies of paying up to three months of future rent at a time, but that was often a program design choice or carried over from ERA1 administration rather than a statutory ERA2 limitation. The controlling Treasury guidance limits total assistance to 18 months combined across ERA1 and ERA2. The CNMI followed US Treasury Guidelines and pushed for a combined 18-month max limit, if financially needed, across ERA1 and ERA2. Therefore, the Office disagrees with the $30,336 questioned cost and we are requesting that this finding be removed based on our explanation above. Proposed Completion Date: Ongoing Condition 1b: The Office of Grants Management (OGM) respectfully disagrees with this finding. Under the U.S. Department of the Treasury's Emergency Rental Assistance Program 2 (ERA2), states, territories, and other eligible grantees were expressly authorized to pay rental arrears (past-due rent) on behalf of eligible households. Treasury guidance states that ERA2 financial assistance could include current rent, rental arrears (back rent), utility and home energy costs, utility and home energy arrears, and other housing-related expenses. Treasury's FAQ further clarifies that: A grantee may provide assistance for rental arrears that accrued on or after March 13, 2020. A grantee was not required to pay the full amount of arrears and could structure the program to provide partial assistance if desired. For the CNMI specifically, if your ERA2 award was active during the period of performance, payment of eligible rental arrears was an allowable use of funds. However, Treasury closed the Finding No.: 2023-027, continued AL Program: COVID-19 21.023 – Emergency Rental Assistance Program Area: Allowable Costs/Cost Principles Questioned Costs: $53,435 Contact Person(s): Epiphanio Cabrera, Jr., Grants Administrator, OGM-SC Corrective Action Plan: ERA2 program on September 30, 2025, and ERA2 funds may no longer be used to provide new rental assistance, including rental arrears. As a practical matter, many ERA programs adopted policies of paying up to three months of future rent at a time, but that was often a program design choice or carried over from ERA1 administration rather than a statutory ERA2 limitation. The controlling Treasury guidance limits total assistance to 18 months combined across ERA1 and ERA2. Therefore, the Office disagrees with the $5,452 questioned cost and we are requesting that this finding be removed based on our explanation above. Proposed Completion Date: Ongoing Condition 1c: The Office of Grants Management (OGM) respectfully disagrees with the findings because using the Purchase Requisition or Purchase Order methodology is not the only method of obtaining goods or services in the CNMI Government. In this situation, the Office opted to use the Invoice Central method in MUNIS. Items for purchase were specifically identified in the portal and it was approved by the Division of Financial Services. The items being purchased are allowable items (office supplies); however, the method used by the Office may not be acceptable by the auditor. Again, the Office disagrees as DOF officials approved the transaction and paid the item out with check#619104. The invoice # for this transaction is 739384-0. If the transaction is not allowable, then DOF should update their SOPs or not allow the Invoice Entry module to be used. Again, we disagree with the finding and questioned cost amounting to $3,485.39. Therefore, the Office disagrees with the $3,485.39 questioned cost and we are requesting that this finding be removed based on our explanation above. Proposed Completion Date: Ongoing Finding No.: 2023-027, continued AL Program: COVID-19 21.023 – Emergency Rental Assistance Program Area: Allowable Costs/Cost Principles Questioned Costs: $53,435 Contact Person(s): Epiphanio Cabrera, Jr., Grants Administrator, OGM-SC Corrective Action Plan: Condition 2a: The Office of Grants Management (OGM) respectfully disagrees with this finding. After the audit inquiry, the supporting timesheet associated with the questioned payroll costs was located and is available for review. The documentation substantiates the payroll charges previously questioned. Accordingly, the Office respectfully disagrees with the questioned costs of $1,159 and requests removal of this finding. Proposed Completion Date: Ongoing Condition 2b: The Office of Grants Management (OGM) respectfully disagrees with this finding. The payroll costs in question are traceable within the financial management system; however, the reporting format aggregates payroll and fringe benefit expenditures in a manner that may make individual employee costs difficult to identify without familiarity with the system's reporting structure. The questioned amount of $658.17 can be reconciled to supporting payroll records and underlying accounting data. The Office is prepared to provide additional supporting documentation and reconciliation schedules to demonstrate the traceability of these costs. Accordingly, the Office respectfully disagrees with the questioned costs of $658 and requests removal of this finding. Proposed Completion Date: Ongoing Condition 3: The Office of Grants Management (OGM) respectfully disagrees with the findings and questioned costs of $12,345.00. According to our records and using budgetary print template reports, the following has been spent: Finding No.: 2023-027, continued AL Program: COVID-19 21.023 – Emergency Rental Assistance Program Area: Allowable Costs/Cost Principles Questioned Costs: $53,435 Contact Person(s): Epiphanio Cabrera, Jr., Grants Administrator, OGM-SC Corrective Action Plan: The CCERA Program spent in total $10,398,930.38 out of the total award of $10,400,669.30, leaving an unspent balance of $1,738.92. This is also reported in the final submitted report to US Treasury. US Treasury accepted the report and advised us to return the unused funds plus 5% interest, which changed the total owed to $1,746.41. This is substantiated by a notice from US Treasury to Collect for Delinquent Indebtedness under Invoice# OCAERA0411A dated March 11, 2025. Thus, confirming that the CNMI only spent $10,398,930.38 under ERA1. Furthermore, there are internal controls built into the MUNIS System that will not allow us to exceed the budgeted amount, so we are not able to exceed the budgeted amount. Thus, the Office disagrees with the $12,345 questioned cost and we are requesting that this finding be removed based on our explanation above. Proposed Completion Date: Ongoing

View Audit 407734

Finding 1224397 (2023-014)

Material Weakness 2023

Commonwealth of the Northern Mariana Islands

MP

Subrecipient Monitoring Reporting § 200.303 § 200.330

Finding No.: 2023-014 AL Programs: 11.307 – Economic Adjustment Assistance Area: Reporting Questioned Costs: $-0- Contact Person(s): Elizabeth S. Balajadia, Office of Planning and Development Acting Director / James Kintol, Project Manager, Department of Finance Corrective Action Plan: Condition 1: ...

Finding No.: 2023-014 AL Programs: 11.307 – Economic Adjustment Assistance Area: Reporting Questioned Costs: $-0- Contact Person(s): Elizabeth S. Balajadia, Office of Planning and Development Acting Director / James Kintol, Project Manager, Department of Finance Corrective Action Plan: Condition 1: For project no. FG17010001 (related to the Economic Resiliency Center), the CNMI Department of Finance respectfully disagrees with this finding. The Department was not aware that a documentation request had been submitted through the EY portal. This occurred because the ERC project was grouped with other OPD-related projects within the same EY portal request, resulting in the Department not receiving clear notification that additional documents were required. The Department maintains all relevant supporting documentation for these transactions and such documentation is available for review upon request from the Grantor. The Office of Planning and Development partially disagrees with the finding related to Project No. FG26050001 and FG26050006. OPD has located the SF-425 Federal Financial Report for Project No. FG26050001 / Grant Award No. 07-79-07631 for the reporting period ending September 30, 2022, and the report is maintained by OPD and available for review. With respect to Project No. FG26050006 / Grant Award No. ED22SEA3070013, OPD has been unable to locate the referenced SF-425 reports for the reporting periods ending September 30, 2022, and March 31, 2023. However, although the grant was awarded in 2022, the project was not established until June 12, 2023, and grant activities had not commenced during the reporting periods cited in the finding. OPD will coordinate with the Department of Finance to determine whether reporting requirements applied during the referenced periods. Should additional guidance or clarification indicate that such reporting requirements were applicable, OPD will review the information provided and take appropriate action, as necessary. Correspondence from the Department of Finance confirming the project establishment date is available for review. OPD will continue coordinating with the Department of Finance and reviewing grant award documentation to determine whether reporting requirements applied during the referenced reporting periods and to identify any records relevant to the audit finding. No further corrective action is proposed at this time pending clarification of the applicable reporting requirements. Proposed Completion Date: Ongoing Condition 2a: For project no. FG17010001 (related to the Economic Resiliency Center), the Department of Finance respectfully disagrees with this finding. The Department was not aware that a documentation request had been submitted through the EY portal. This occurred because the ERC Finding No.: 2023-014, continued AL Programs: 11.307 – Economic Adjustment Assistance Area: Reporting Questioned Costs: $-0- Contact Person(s): Elizabeth S. Balajadia, Office of Planning and Development Acting Director / James Kintol, Project Manager, Department of Finance Corrective Action Plan: project was grouped with other OPD-related projects within the same EY portal request, resulting in the Department not receiving clear notification that additional documents were required. The Department maintains all relevant supporting documentation for these transactions and such documentation is available for review upon request from the Grantor. The Office of Planning and Development (OPD) respectfully disagrees with the finding related to Project No. 2605210018. OPD has located the SF-271 Outlay Reports and Requests for Reimbursement for Construction Program for Project No. 2605210018 / Grant Award No. 07-79-07562 covering the periods July 1, 2022, through October 31, 2022, and November 1, 2022, through January 9, 2023. These records are maintained by OPD and are available for review. No further corrective action is proposed. OPD has located the requested SF-271 reports and confirmed that they are maintained within its grant records and available for review. OPD will continue maintaining grant records in accordance with applicable record-retention requirements. Proposed Completion Date: Ongoing Condition 2b: The Office of Planning and Development (OPD) respectfully disagrees with the finding. OPD has located supporting accounting records associated with the SF-271 for Project No. 2605210018 / Grant Award No. 07-79-07562 covering the period August 29, 2022, through April 30, 2023, including invoices, purchase orders, and check copies. These records are maintained by OPD and are available for review. No further corrective action is proposed. The requested supporting records have been located and are maintained by OPD for review. OPD will continue maintaining supporting financial documentation in accordance with applicable record-retention requirements. Proposed Completion Date: Ongoing Condition 3a: For project no. FG17010001 (related to the Economic Resiliency Center), the Department of Finance respectfully disagrees with this finding. The Department was not aware that a documentation request had been submitted through the EY portal. This occurred because the ERC project was grouped with other OPD-related projects within the same EY portal request, resulting in the Department not receiving clear notification that additional documents were required. The Department maintains all relevant supporting documentation for these transactions and such documentation is available for review upon request from the Grantor. Finding No.: 2023-014, continued AL Programs: 11.307 – Economic Adjustment Assistance Area: Reporting Questioned Costs: $-0- Contact Person(s): Elizabeth S. Balajadia, Office of Planning and Development Acting Director / James Kintol, Project Manager, Department of Finance Corrective Action Plan: The Office of Planning and Development (OPD) respectfully disagrees with the finding. OPD has located the performance reports for Project No. FG26050001 / Grant Award No. 07-79-07631 and Project No. 2605210018 / Grant Award No. 07-79-07562 for the reporting period ending September 30, 2022. OPD believes the reports referenced in the finding as Periodic Performance Reports are maintained and submitted by OPD as Quarterly Progress Reports (QPRs). These records are maintained by OPD and are available for review. No further corrective action is proposed. The requested performance reports have been located and are maintained by OPD for review. OPD will continue maintaining programmatic records in accordance with applicable record-retention requirements. Proposed Completion Date: Ongoing Condition 3b: The Office of Planning and Development (OPD) agrees with the finding. The Periodic Performance Report for Project No. 2605210018 / Grant Award No. 07-79-07562 for the reporting period ending December 31, 2022, was submitted after the required due date. Although operational circumstances at the time contributed to the delay, OPD recognizes the importance of timely reporting and will strengthen internal monitoring procedures to improve tracking of reporting deadlines and support timely submission of all required reports. OPD will implement a reporting calendar and periodic internal reviews to monitor upcoming reporting deadlines and ensure timely submission of all required reports. Proposed Completion Date: Ongoing Condition 4: For project no. FG17010001 (related to the Economic Resiliency Center), the CNMI Department of Finance respectfully disagrees with this finding. Based on the project’s Special Award Conditions, the only reporting requirements identified for this award are the submission of Project Progress Reports and Financial Reports (SF-425). No additional reporting or documentation requirements – beyond those explicitly stated – were communicated to the Department. Accordingly, the Department requests further clarification from the auditor regarding the specific authority or requirement that forms this basis of this finding, including where such a requirement Finding No.: 2023-014, continued AL Programs: 11.307 – Economic Adjustment Assistance Area: Reporting Questioned Costs: $-0- Contact Person(s): Elizabeth S. Balajadia, Office of Planning and Development Acting Director / James Kintol, Project Manager, Department of Finance Corrective Action Plan: is documented. A copy of the Special Award Conditions is maintained by the Department and is available for review upon request. The Office of Planning and Development (OPD) respectfully disagrees with the finding. OPD reviewed the grant files, including the applicable Special Award Conditions, for Project No. 2605210018 / Grant Award No. 07-79-07562 and Project No. FG26050001 / Grant Award No. 07- 79-07631. OPD was unable to identify a requirement for submission of an Annual Performance Technical Report within the grant terms and conditions governing these awards. The applicable Special Award Conditions have been identified and are available for review. OPD respectfully requests clarification regarding the specific report referenced in the finding and will provide any applicable documentation should an applicable reporting requirement be identified. OPD will review any additional guidance or clarification provided regarding the reporting requirements applicable to these grants and will take appropriate action, if necessary. OPD will continue reviewing grant award requirements and maintaining documentation of applicable reporting obligations to support compliance and future audit reviews.

View Audit 407734

Finding 1224395 (2023-012)

Material Weakness 2023

Commonwealth of the Northern Mariana Islands

MP

Reporting

Finding No.: 2023-012 AL Programs: COVID-19 10.542 – Pandemic EBT Food Benefits (P-EBT) Area: Reporting Questioned Costs: $-0- Contact Person(s): Margaret Aldan, NAP Administrator Corrective Action Plan: The CNMI NAP agrees with the auditor’s finding and conclusions. The issue occurred because of co...

Finding No.: 2023-012 AL Programs: COVID-19 10.542 – Pandemic EBT Food Benefits (P-EBT) Area: Reporting Questioned Costs: $-0- Contact Person(s): Margaret Aldan, NAP Administrator Corrective Action Plan: The CNMI NAP agrees with the auditor’s finding and conclusions. The issue occurred because of competing priorities in our partner agencies and delays in the overall process for preparing and submitting the quarterly Federal Financial Reports (SF-425). This has been a recurring finding in prior years, including the FY23 Financial Management Review. To prevent recurrence, the CNMI NAP will perform the following: • Establish a formal internal checklist and timeline for NAP’s portion of the SF-425 preparation process. • Implement a centralized electronic filing system for all reporting supporting documentation. • Assign a designated NAP staff member to track submission status and perform a final quality review prior to each quarterly submission. Finding No.: 2023-012 AL Programs: COVID-19 10.542 – Pandemic EBT Food Benefits (P-EBT) Area: Reporting Questioned Costs: $-0- Contact Person(s): Margaret Aldan, NAP Administrator Corrective Action Plan: • Schedule regular coordination meetings with all involved departments to improve data-sharing timelines and accountability. • Conduct annual training for relevant NAP fiscal staff on federal reporting requirements and internal escalation procedures. Proposed Completion Date: September 30, 2026

View Audit 407734

Finding 1224310 (2023-004)

Material Weakness 2023

Santo Domingo Tribal Housing Authority

NM

Reporting

Management’s Response: The SDTHA management concurs that a problem exists with the financial reporting for the IHBG award. During the 2019 HUD monitoring, it was noted that there were issues with expenditures and what was allowable expenses. SDTHA management has been working diligently to correct an...

Management’s Response: The SDTHA management concurs that a problem exists with the financial reporting for the IHBG award. During the 2019 HUD monitoring, it was noted that there were issues with expenditures and what was allowable expenses. SDTHA management has been working diligently to correct and ensure all expenditures are all allowable. SDTHA management will complete all 425’s once the audits have been completed. Timeline and Estimated Completion Date: December 31, 2026 Responsible Official: Jonah Garcia, Finance Officer

View Audit 407599

Finding 1224308 (2023-003)

Material Weakness 2023

Santo Domingo Tribal Housing Authority

NM

Reporting Internal Control / Segregation of Duties

Management’s Response: SDTHA’s management concurs that a problem exists with financial reporting for the IHBG award. During the HUD monitoring for 2019 and the subsequent audits, issueswere noted with expenditures. These issues were brought up to management in 2020, which resulted in having to compl...

Management’s Response: SDTHA’s management concurs that a problem exists with financial reporting for the IHBG award. During the HUD monitoring for 2019 and the subsequent audits, issueswere noted with expenditures. These issues were brought up to management in 2020, which resulted in having to complete the 2018 audit. The audit reports are cumulative, ending balances from the prior year are carried over to the beginning of the next year, so this has slowed down the completion of timely filing. SDTHA developed a plan to have 2023 completed by quarter two of 2026, 2024 and 2025 audits to be completed before the end of 2026 Timeline and Estimated Completion Date: December 31, 2026 Responsible Official: Lorrie Chavez, Executive Director and Jonah Garcia, Finance Officer

View Audit 407599

Finding 1224302 (2023-002)

Material Weakness 2023

Prevent Child Abuse Utah

UT

Questioned Costs Subrecipient Monitoring Material Weakness § 200.512

Management should establish and implement a robust tracking system to monitor reporting deadlines, ensure timely financial statement preparation, and improve coordination with external auditors. Additionally, assigning a compliance officer or designated staff member responsible for tracking audit pr...

Management should establish and implement a robust tracking system to monitor reporting deadlines, ensure timely financial statement preparation, and improve coordination with external auditors. Additionally, assigning a compliance officer or designated staff member responsible for tracking audit progress and submission deadlines can help prevent future delays.

View Audit 407583

Finding 1224235 (2023-013)

Material Weakness 2023

International Fertilizer Development Company

AL

Questioned Costs Reporting Significant Deficiency § 200.512

2023-013-Late filing of the data collection form Suggested Action: Enhanced internal controls and timelines around the year-end close and audit coordination to ensure timely completion of future audits and related filings. Responsible Official: Global Finance Director Completion Date: 6/30/2026

View Audit 407579

Finding 1224222 (2023-012)

Material Weakness 2023

International Fertilizer Development Company

AL

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting § 200.302 § 200.331 § 200.332

2023-012-Subrecipient Monitoring Suggested Action: Enhanced contractual requirements that ensure greater subrecipient monitoring around greater support for any requests or assertions from our subrecipients. Responsible Official: Chief Operations Officer Completion Date: 6/30/2026

View Audit 407579

Finding 1224183 (2023-009)

Material Weakness 2023

International Fertilizer Development Company

AL

Reporting Material Weakness § 200.508

2023-009-Reconciliation of accounts Suggested Action: Ensure proper month end close, including reconciliation of major accounts. Responsible Official: Assistant Controller Completion Date: 4/30/2026

View Audit 407579

Finding 1224019 (2023-004)

Material Weakness 2023

LAND MANOR, INC.

TX

Reporting Internal Control / Segregation of Duties

Control Activities Corrective Action Plan: The Corrective Action Plan referenced at 2023-002/003 will be expanded to include internal control over program compliance. The Monitoring Program being considered at 2023-001 would enhance compliance awareness on the part of program employees. Anticipated ...

Control Activities Corrective Action Plan: The Corrective Action Plan referenced at 2023-002/003 will be expanded to include internal control over program compliance. The Monitoring Program being considered at 2023-001 would enhance compliance awareness on the part of program employees. Anticipated Completion Date: July 15, 2026 Responsible Party: Land Manor Executive Director, Quality Management Coordinator and Program Directors.

View Audit 407429

Finding 1223936 (2023-003)

Material Weakness 2023

Hope Toledo Services

OH

Questioned Costs HUD Housing Programs Reporting

Reporting Coronavirus State and Local Fiscal Recovery Funds – Assistance Listing No. 21.027 Recommendation: We recommend that reports are prepared and reviewed by separate individuals. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/tak...

Reporting Coronavirus State and Local Fiscal Recovery Funds – Assistance Listing No. 21.027 Recommendation: We recommend that reports are prepared and reviewed by separate individuals. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The Organization will put a formal layer of review after preparation of the report and before submission to the grantor. Name of the contact person responsible for corrective action: John C. Jones, President and CEO Planned completion date for corrective action plan: 9/30/2026

View Audit 407341

Finding 1223926 (2023-001)

Material Weakness 2023

Municipality of Camuy

PR

Reporting Material Weakness Matching / Level of Effort / Earmarking

We acknowledge the finding. The Municipality has developed an internal plan with the auditors and consultants to perform all pending Single Audits to the Federal Audit Clearinghouse as soon as possible. The Single Audit for the fiscal years ended June 30, 2024 and June 30, 2025 are already contracte...

We acknowledge the finding. The Municipality has developed an internal plan with the auditors and consultants to perform all pending Single Audits to the Federal Audit Clearinghouse as soon as possible. The Single Audit for the fiscal years ended June 30, 2024 and June 30, 2025 are already contracted and are expected to begin in August 2026. Personnel in charge: Daiana González Hernández, Finance Director Projected Completion Date: June 30, 2027

View Audit 407331

Finding 1223925 (2023-003)

Material Weakness 2023

Municipality of Camuy

PR

Internal Control / Segregation of Duties Subrecipient Monitoring Material Weakness § 200.303

We acknowledge the finding. The Municipality will be working on scheduling the reports required by each program. It is important to note that all reports are prepared by the accountants assigned to each federal program and reviewed and approved by the Finance Department and the Mayor. This process s...

We acknowledge the finding. The Municipality will be working on scheduling the reports required by each program. It is important to note that all reports are prepared by the accountants assigned to each federal program and reviewed and approved by the Finance Department and the Mayor. This process sometimes results in late report submissions. Staff have been instructed to work on the reports before the 10th of each month to allow sufficient time for proper review and submission, ensuring they are duly reviewed and approved. The reports due on September 15, 2022, and October 15, 2022, were delayed due to Hurricane Fiona's passage through Puerto Rico on September 14, 2022. We experienced power and internet outages at the Municipality. Personnel in charge: Daiana González Hernández, Finance Office Director Projected Completion Date: August 31, 2026

View Audit 407331

Finding 1223714 (2023-004)

Material Weakness 2023

Rhode Island Disaster Medical Assistance Team, Inc.

RI

Reporting Internal Control / Segregation of Duties § 200.512

Strengthened internal controls over year-end financial reporting to ensure timely completion of the audit by establishing a comprehensive audit timeline with milestone deadlines by February 28, 2026. Implemented a detailed closing schedule and tracking process to monitor deadlines, beginning with mo...

Strengthened internal controls over year-end financial reporting to ensure timely completion of the audit by establishing a comprehensive audit timeline with milestone deadlines by February 28, 2026. Implemented a detailed closing schedule and tracking process to monitor deadlines, beginning with monthly financial close procedures and year-end close preparation by March 31, 2026. Ensured adequate staffing or external support during the financial statement preparation and audit process, including retention of qualified accounting consultant by April 30, 2026. Began conducting periodic reviews to confirm compliance with federal Single Audit submission deadlines, with Executive Director oversight of audit progress reports by May 31, 2026. In the process of prioritizing completion of the outstanding audit report for fiscal year 2024 with an aggressive timeline: 2024 audit by December 31, 2026. In the process of establishing year-round audit preparation procedures, including monthly reconciliations, quarterly financial reviews, and ongoing documentation organization to prevent delays.

View Audit 407209

Finding 1223580 (2023-002)

Material Weakness 2023

County of Belknap, New Hampshire

NH

Reporting Internal Control / Segregation of Duties Material Weakness § 200.303

Audit Finding Reference: 2023-002 Internal Controls Over Reporting Planned Corrective Action: Finance Director will review quarterly report prior to submission Planned Implementation Date of Corrective Action: Immediately upon notification, June 09, 2025. Person Responsible for Corrective Action: Co...

Audit Finding Reference: 2023-002 Internal Controls Over Reporting Planned Corrective Action: Finance Director will review quarterly report prior to submission Planned Implementation Date of Corrective Action: Immediately upon notification, June 09, 2025. Person Responsible for Corrective Action: County Administrator and Finance Director

View Audit 407004

Finding 1223457 (2023-007)

Material Weakness 2023

Mesalands Community College

NM

Subrecipient Monitoring Reporting

The Business Office staff is currently training with Jenzabar support staff on specific modules to gain a better understanding of the system and how it can be utilized more effectively. Internal controls and policies and procedures are being reviewed and changes are being made as needed to ensure ti...

The Business Office staff is currently training with Jenzabar support staff on specific modules to gain a better understanding of the system and how it can be utilized more effectively. Internal controls and policies and procedures are being reviewed and changes are being made as needed to ensure timely implementation and compliance with all financial reporting requirements. The expected date of completion is June 30, 2025. The staff responsible is the Finance Director.

View Audit 406812

Finding 1223456 (2023-006)

Material Weakness 2023

Mesalands Community College

NM

Matching / Level of Effort / Earmarking Questioned Costs Subrecipient Monitoring

The Finance Director will work closely with the Foundation staff to ensure that policies and procedures are implemented for the reconciling of Title V federal fund balances. The recommendation to have the Foundation Board adopt the Title V balance as correct in a meeting will be provided to the Foun...

The Finance Director will work closely with the Foundation staff to ensure that policies and procedures are implemented for the reconciling of Title V federal fund balances. The recommendation to have the Foundation Board adopt the Title V balance as correct in a meeting will be provided to the Foundation staff and the minutes of this meeting will be forwarded to the Finance Director. The expected date of completion will be June 30, 2025. The staff responsible is the Finance Director and the Foundation Staff.

View Audit 406812

Finding 1223284 (2023-003)

Material Weakness 2023

CITY OF FRANKLIN

WI

Reporting Cash Management Material Weakness § 200.512

Recommendation: We recommend that the City implement a system of internal controls over the financial close and reporting process that will mitigate the risk of misstatement in accordance with Uniform Guidance, the Wisconsin State Single Audit Guidelines, and the Wisconsin Department of Health Servi...

Recommendation: We recommend that the City implement a system of internal controls over the financial close and reporting process that will mitigate the risk of misstatement in accordance with Uniform Guidance, the Wisconsin State Single Audit Guidelines, and the Wisconsin Department of Health Services Audit Guide. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The City is actively working with their auditors to become current with required single audit filings. Name(s) of the contact person(s) responsible for corrective action: Danielle Brown, Director of Finance & Treasurer Planned completion date for corrective action plan: September 30, 2026

View Audit 406785

Finding 1223239 (2023-004)

Material Weakness 2023

STANDING ROCK TELECOMMUNICATIONS, INC

ND

Reporting Significant Deficiency Internal Control / Segregation of Duties

Management agrees with this finding. The Fund has historically relied on independent auditors to assist with drafting the annual financial statements and note disclosures in accordance with GAAP due to limited internal accounting resources. While management expects to continue relying on the auditor...

Management agrees with this finding. The Fund has historically relied on independent auditors to assist with drafting the annual financial statements and note disclosures in accordance with GAAP due to limited internal accounting resources. While management expects to continue relying on the auditors for drafting assistance in the near term, management will strengthen its internal review and approval process over financial reporting. This will include additional training for accounting personnel and management, use of financial statement disclosure checklists, and more formal review by management and those charged with governance before issuance. Corrective action plan: • Designate a member of management to serve as the internal financial reporting coordinator for the annual audit and reporting process. • Obtain training for accounting and management personnel on GAAP financial statement presentation, note disclosure requirements, and key year-end reporting areas relevant to the Fund. • Use an annual financial statement review checklist to evaluate the draft statements, note disclosures, and required supplementary information, if any. • Require documented management review and approval of the final financial statements and related notes before issuance. • Provide the Board of Directors or designated governance committee with an opportunity to review the audited financial statements and significant disclosures. Responsible party/role: General Manager and Business Office Manager, with governance oversight by the Board of Directors. Implementation timeline: The enhanced review process will be implemented for the next annual financial reporting cycle and no later than the preparation of the financial statements for the year ending September 30, 2026. Training and checklist development will occur by June 30, 2026.

View Audit 406743

Finding 1223238 (2023-003)

Material Weakness 2023

STANDING ROCK TELECOMMUNICATIONS, INC

ND

Reporting Equipment & Real Property Management Internal Control / Segregation of Duties

Management agrees with this finding. Management acknowledges that the Fund’s existing property records have not been sufficiently centralized or detailed to support strong control over capital assets, depreciation, and asset lifecycle monitoring. The Fund will create a centralized fixed asset regist...

Management agrees with this finding. Management acknowledges that the Fund’s existing property records have not been sufficiently centralized or detailed to support strong control over capital assets, depreciation, and asset lifecycle monitoring. The Fund will create a centralized fixed asset register that includes, at a minimum, asset description, asset tag or identifier, acquisition date, placed-in-service date, cost, funding source where applicable, depreciation method, useful life, physical location, condition, custodian or department, and disposal information. Management will also reconcile the register to the general ledger on a periodic basis and formalize policies governing capitalization thresholds, depreciation, transfers, retirements, and write-offs. Corrective action plan: • Develop and populate a centralized fixed asset register for all significant capital assets. • Perform a baseline review of existing capital asset balances and supporting invoices, contracts, and prior schedules to establish completeness. • Reconcile the fixed asset register to the general ledger and investigate differences. • Adopt a written capital asset policy addressing capitalization thresholds, useful lives, depreciation conventions, disposals, and approval requirements. • Perform a physical inventory of capital assets and update records for location, condition, and disposition status. Responsible party/role: Staff Accountant in coordination with the Business Office Manager and oversight from the General Manager. Implementation timeline: The centralized fixed asset register will be established within 120 days of issuance of the audit report. The initial reconciliation to the general ledger and baseline physical inventory will be completed by June 30, 2026, with periodic reconciliations performed thereafter at least quarterly for additions and disposals and annually for full rollforward validation.

View Audit 406743

Finding 1223237 (2023-002)

Material Weakness 2023

STANDING ROCK TELECOMMUNICATIONS, INC

ND

Reporting Internal Control / Segregation of Duties

Management agrees with this finding. Management acknowledges that balance sheet reconciliations were not performed or reviewed with sufficient consistency and documentation, which increases the risk that errors, omissions, or unauthorized activity may not be identified on a timely basis. Management ...

Management agrees with this finding. Management acknowledges that balance sheet reconciliations were not performed or reviewed with sufficient consistency and documentation, which increases the risk that errors, omissions, or unauthorized activity may not be identified on a timely basis. Management will implement a formal reconciliation process for significant balance sheet accounts, including cash, receivables, payables, debt, accrued liabilities, intercompany or related-party balances if applicable, and other key accounts. Reconciliations will be prepared on a documented monthly or quarterly basis depending on account risk and volume, independently reviewed, and retained in a centralized file. Reconciling items will be investigated and resolved within an established deadline, except where a longer period is justified and documented. Corrective action plan: • Adopt a reconciliation policy identifying each significant balance sheet account, frequency of reconciliation, preparer, reviewer, and required supporting documentation. • Prepare monthly reconciliations for cash, major receivables, major payables, payroll liabilities, and debt accounts; prepare quarterly reconciliations for lower-risk or less active balance sheet accounts. • Require independent review and sign-off by the Finance Manager/Controller or General Manager, as appropriate. • Retain all reconciliation workpapers and supporting schedules in an organized electronic and/or paper file. • Establish a requirement that routine reconciling items be cleared within 30 days after identification, and no later than the subsequent monthly close absent documented management approval. Responsible party/role: Staff Accountant or Bookkeeper as preparer; Business Office Manager as primary reviewer; General Manager for oversight. Implementation timeline: Reconciliation templates and the formal policy will be implemented within 60 days of issuance of the audit report. Full documented monthly and quarterly reconciliations will begin with the next monthly close thereafter, and all significant balance sheet accounts are expected to be covered by September 30, 2026.

View Audit 406743

Finding 1223216 (2023-013)

Material Weakness 2023

Williston Basin Public School District #7

ND

Allowable Costs / Cost Principles Material Weakness Reporting § 200.303 § 200.403

2023-013 – EDUCATION STABILIZATION FUND - LACK OF SUPPORT OVER ESSER FUNDS – ALN 84.425 - MATERIAL WEAKNESS & MATERIAL NONCOMPLIANCE Condition: Williston Basin Public School District No. 7 was unable to provide supporting documentation for journal entries that were done to reallocate payroll. There ...

2023-013 – EDUCATION STABILIZATION FUND - LACK OF SUPPORT OVER ESSER FUNDS – ALN 84.425 - MATERIAL WEAKNESS & MATERIAL NONCOMPLIANCE Condition: Williston Basin Public School District No. 7 was unable to provide supporting documentation for journal entries that were done to reallocate payroll. There were 3 journal entries totaling $6,391,442 that were completed at year end to move salaries into the Education Stabilization Fund program that did not have documentation to support the salary expenditures. Management’s Response: We agree. WBSD#7 created a new Grants Coordinator position in July 2023 with one of the specific responsibilities for that position being oversight of all Federal programs. This oversight responsibility includes monitoring expenditures to ensure all expenditures are allowable within the parameters of each program and also that proper documentation for those expenditures has been maintained. It has taken the district some time to get this area cleaned up. Anticipated Completion Date: FY 2025

View Audit 406705

Finding 1223215 (2023-012)

Material Weakness 2023

Williston Basin Public School District #7

ND

Material Weakness Reporting § 200.327 § 200.329

2023-012– EDUCATION STABILIZATION FUND - REPORTING – ALN 84.425 - MATERIAL WEAKNESS & MATERIAL NONCOMPLIANCE Condition: Williston Basin Public School District No. 7 did not maintain documentation for the data that was submitted to the North Dakota Department of Public Instruction (NDDPI) for the sta...

2023-012– EDUCATION STABILIZATION FUND - REPORTING – ALN 84.425 - MATERIAL WEAKNESS & MATERIAL NONCOMPLIANCE Condition: Williston Basin Public School District No. 7 did not maintain documentation for the data that was submitted to the North Dakota Department of Public Instruction (NDDPI) for the state’s completion of the Annual Report for the Education Stabilization Fund program. We were able to obtain the information that was submitted from NDDPI; however, due to issues identified with the accuracy of underlying accounting records we were unable to determine if the information included in the report is accurate. Management’s Response: We agree. The District will work to ensure that all federal programs reporting requirements are met going forward. The district has implemented new documentation retention requirements. Anticipated Completion Date: FY 2025

View Audit 406705

Finding 1223163 (2023-003)

Material Weakness 2023

CENTRO DE CUIDADO AMOR, INC

PR

Reporting § 200.512

VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION We will improve accounting and financial reporting policies and procedures to include the timely issuance of the financial statement and the uniform guidance report. IMPLEMENTATION DATE September 30, 2026 RESPONSIBLE PERSON Ivan Rentas, Pr...

VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION We will improve accounting and financial reporting policies and procedures to include the timely issuance of the financial statement and the uniform guidance report. IMPLEMENTATION DATE September 30, 2026 RESPONSIBLE PERSON Ivan Rentas, President

View Audit 406682

Finding 1223162 (2023-002)

Material Weakness 2023

CENTRO DE CUIDADO AMOR, INC

PR

Procurement, Suspension & Debarment Subrecipient Monitoring Allowable Costs / Cost Principles § 200.302 § 200.305 § 200.328 § 200.329 § 200.334

VIEWS OF RESPONSIBLE OFFICIALS In response to the single audit finding we will take the following actions. We will establish internal controls that provide certainty, effective monitoring data validation and accountability for those employees who approved expenditures. We will prepare written proces...

VIEWS OF RESPONSIBLE OFFICIALS In response to the single audit finding we will take the following actions. We will establish internal controls that provide certainty, effective monitoring data validation and accountability for those employees who approved expenditures. We will prepare written process in accordance with both state and federal regulations. We will prepare written process in accordance with both state and federal regulations. We will require relevant staff (Staff interacting with procurement, expenditures approval) a comprehensive training program on the requirements of CFR 200. IMPLEMENTATION DATE September 30, 2026 RESPONSIBLE PERSON Ivan Rentas, President

View Audit 406682

Corrective Action Plans

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