Corrective Action Plans

Finding 1222684 (2025-002)

Material Weakness 2025

Mazzoni Center

PA

Reporting § 200.302 § 200.328

Material Weakness in Internal Control over Compliance and Compliance - Reporting Federal Program: 93.939- HIV Prevention Activities: Non-Governmental Organization Based Federal Agency: U.S. Department of Health and Human Services. Award Number: NU65PS923746 Fiscal Year: July 1, 2024 – June 30, 2025 ...

Material Weakness in Internal Control over Compliance and Compliance - Reporting Federal Program: 93.939- HIV Prevention Activities: Non-Governmental Organization Based Federal Agency: U.S. Department of Health and Human Services. Award Number: NU65PS923746 Fiscal Year: July 1, 2024 – June 30, 2025 Recommendation: We recommend that management implement procedures to ensure that expenditures reported on the Federal Financial Report reflect actual costs incurred during the reporting period and are supported by appropriate documentation. Staff responsible for preparing the Federal Financial Report should be trained in federal reporting requirements to ensure compliance. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: There is not currently a clear internal procedure on how to complete the Federal Financial Reports. This will be added to the finance department procedures and will be trained to all staff who will be responsible for this reporting. Name of the contact person responsible for corrective action: Simon Trowell, Chief Executive Officer. Planned completion date for corrective action plan: June 30, 2026

View Audit 406259

Finding 1222670 (2025-008)

Material Weakness 2025

UNITED COMMUNITY MINISTRIES, INC.

VA

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties § 200.302 § 200.328

2025-008 Auditor’s Recommendation: We recommend the organization strengthen its internal controls over federal financial reporting by establishing and documenting procedures requiring that all reports submitted to federal awarding agencies or pass-through entities be prepared using actual expenditur...

2025-008 Auditor’s Recommendation: We recommend the organization strengthen its internal controls over federal financial reporting by establishing and documenting procedures requiring that all reports submitted to federal awarding agencies or pass-through entities be prepared using actual expenditures recorded in the accounting system. These procedures should include a reconciliation of reported amounts to the general ledger and supporting documentation prior to submission, as well as an independent review process to ensure reported information is accurate, complete, and compliant with Uniform Guidance requirements. Corrective Action: UCM will develop and implement written procedures requiring that all financial reports submitted to federal awarding agencies or pass-through entities are prepared using actual expenditures recorded in UCM’s accounting system. Reported amounts will be reconciled to the general ledger and supported by appropriate documentation before submission, including general ledger detail, payroll records, accounts payable records, allocation schedules, invoices, receipts, proof of payment, and other records supporting the reported costs. UCM will implement a federal financial reporting checklist to document preparation, reconciliation, and review each report. The checklist will require verification that reported costs agree to actual expenditures, are recorded in the correct reporting period, are charged to the correct federal award, are supported by documentation, and are consistent with award terms and Uniform Guidance requirements. A qualified individual independent of the report preparation process will review and approve reports before submission, and evidence of review will be retained. Responsible for Corrective Action: Shruti Jha, Senior Director of Finance Gina Macanlalay, Director of Family Achievement Program Laura D’Ambrogi, Grants Manager Independent Reviewer (CEO, Finance Committee Chair, or another qualified reviewer) Anticipated Completion Date: December 31, 2026

View Audit 406238

Finding 1222664 (2025-003)

Material Weakness 2025

City of Watertown

SD

Internal Control / Segregation of Duties Questioned Costs Material Weakness

Department of Treasury, Passed through the Department of Agriculture and Natural Resources Federal Financial Assistance Listing No. 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Finding Summary: During the engagement, Eide Bailly LLP noted the annual project and expenditure repor...

Department of Treasury, Passed through the Department of Agriculture and Natural Resources Federal Financial Assistance Listing No. 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Finding Summary: During the engagement, Eide Bailly LLP noted the annual project and expenditure report submitted during the year ended December 31, 2025, was not reviewed prior to submission and had amounts reported that did not agree to the general ledger system of the City. Responsible Individuals: Kristen Bobzien, Chief Financial Officer Corrective Action Plan: The City will put procedures in place to ensure the annual project and expenditure report is reviewed for accuracy prior to submission. Anticipated Completion Date: December 31, 2026

View Audit 406234

Finding 1222652 (2025-002)

Material Weakness 2025

Score Association

VA

Reporting Questioned Costs

SCORE believes that this finding stems from exceptional circumstances that occurred during fiscal year 2025 related to the interruption of federal funding. SCORE expensed the last of the authorized fiscal year 2025 federal award funds in March 2025 and is still awaiting authorization for the remaind...

SCORE believes that this finding stems from exceptional circumstances that occurred during fiscal year 2025 related to the interruption of federal funding. SCORE expensed the last of the authorized fiscal year 2025 federal award funds in March 2025 and is still awaiting authorization for the remainder of the appropriated funds under the fiscal year 2025 award. As a result, SCORE was not able to continue submitting monthly draw requests that included the corresponding Detailed Expenditure Worksheets (DEWs). However, in accordance with the Notice of Award requirements, SCORE continued to prepare and submit quarterly financial reports reflecting expenditures that had been earmarked for federal reimbursement. Because the corresponding DEWs and draw requests could not be submitted while federal funding authorization remained pending, these reports could not be fully reconciled to the DEWs that have not yet been filed. Management acknowledges the auditors’ recommendation and will strengthen internal controls around the reconciliation of monthly and quarterly reporting. SCORE will implement enhanced reconciliation procedures to ensure that future reimbursement requests are fully reconciled prior to submission and will establish a documented contingency procedure for reporting periods in which federal funding authorization or reimbursement processing is delayed.

View Audit 406219

Finding 1222640 (2025-004)

Material Weakness 2025

Jones County Junior College

MS

Student Financial Aid Subrecipient Monitoring Reporting § 200.303

The College acknowledges the finding and agrees that reporting to the Common Origination and Disbursement (COD) system must be accurate, complete, and submitted within required timeframes. The condition resulted from the absence of formal procedures and controls to validate key data elements and mon...

The College acknowledges the finding and agrees that reporting to the Common Origination and Disbursement (COD) system must be accurate, complete, and submitted within required timeframes. The condition resulted from the absence of formal procedures and controls to validate key data elements and monitor reporting timeliness. The College is in the process of implementing enhanced controls over COD reporting. The Office of Financial Aid will develop and formalize written procedures governing the reconciliation of awarding and disbursement activity with COD reporting, including defined responsibilities, documentation standards, and review requirements. The College will also engage third-party consultants to review current processes and assist with system enhancements. System configuration and process improvements will be implemented to support the automation of award and disbursement reporting through PeopleSoft. The Office of Financial Aid will implement quality control measures, including systematic validations and documented supervisory review, to ensure accuracy, consistency, and compliance in COD reporting. Implementation of these procedures began in April 2026 and was not in place for the full fiscal year. Fiscal year 2026 represents a transition period during which controls are being implemented and refined. Full implementation is expected for the 2026–2027 award year. These actions are intended to ensure that COD reporting is accurate, timely, and properly controlled, and to prevent recurrence.

View Audit 406216

Finding 1222620 (2025-002)

Material Weakness 2025

Disability Rights South Dakota

SD

Reporting

Finding No. 2025-002: Adjustments to Financial Statements and Schedule of Expenditures of Federal Awards Responsible Individuals: Carrie Watts, Fiscal and Grant Manager Corrective Action Plan: The Organization will seek outside consulting to train existing personnel on accrual accounting and assista...

Finding No. 2025-002: Adjustments to Financial Statements and Schedule of Expenditures of Federal Awards Responsible Individuals: Carrie Watts, Fiscal and Grant Manager Corrective Action Plan: The Organization will seek outside consulting to train existing personnel on accrual accounting and assistance with year-end adjustments. Anticipated Completion Date: September 30, 2026

View Audit 406207

Finding 1222605 (2025-002)

Material Weakness 2025

Lee Health System, Inc.

FL

Internal Control / Segregation of Duties Reporting Questioned Costs § 200.512

2025-002: Reporting – Submission of the Data Collection Form Information on Federal Programs Federal Emergency Management Agency Assistance Listing Number: 97.036 Assistance Listing Name: Disaster Grants - Public Assistance passed through Florida Division of Emergency Management U.S. Department of H...

2025-002: Reporting – Submission of the Data Collection Form Information on Federal Programs Federal Emergency Management Agency Assistance Listing Number: 97.036 Assistance Listing Name: Disaster Grants - Public Assistance passed through Florida Division of Emergency Management U.S. Department of Health and Human Services Assistance Listing Number: 93.778 Assistance Listing Name: Medicaid Cluster – Medical Assistance Program Management will implement and maintain the following corrective actions:  Management has added a validation step with a secondary review by another team member to validate that all steps relating to submission have been clearly completed.  Management has also added this to our reporting checklist that is part of the Single Audit Process Narrative. Responsible Party: Controller, under the oversight of the Vice President of Financial Services/Chief Financial Officer, in coordination with the Grants function. Completion date: June 30, 2026

View Audit 406201

Finding 1222601 (2025-003)

Material Weakness 2025

City of Chillicothe

OH

Reporting § 200.328 § 200.329

The City will review due dates to ensure proper reporting requirements are met.

View Audit 406187

Finding 1222570 (2025-001)

Material Weakness 2025

Prairie Opportunity, Inc.

MS

Reporting Subrecipient Monitoring § 200.512

AUDITEE'S CORRECTIVE ACTION PLAN June 23, 2026 U. S. DEPARTMENT OF HEALTH AND HUMAN SERVICES Prairie Opportunity, Inc., respectfully submits the following corrective action plan for the year ended September 30, 2025. Name and address of independent public accounting form: Brown, Ewing & Co., P.A. 30...

AUDITEE'S CORRECTIVE ACTION PLAN June 23, 2026 U. S. DEPARTMENT OF HEALTH AND HUMAN SERVICES Prairie Opportunity, Inc., respectfully submits the following corrective action plan for the year ended September 30, 2025. Name and address of independent public accounting form: Brown, Ewing & Co., P.A. 308 Highland Park Cove, Ridgeland, MS 39157. Audit period: Year Ended September 30, 2025. The findings from the September 30, 2025 Schedule of Findings and Questioned Costs is discussed below. The finding is numbered consistently with the numbers assigned in the schedule. Section 1 of the schedule, Summary of Audit's Results, does not include findings and is not addressed. Section 3: Findings and Questioned Costs - Major Federal Award Program Audit FINDING 2025-001 FAILURE TO SUBMIT THE DATA COLLECTION FORM AND AUDIT REPORT TO THE FEDERAL AUDIT CLEARINGHOUSE TIMELY Condition: The auditee did not submit the required Data Collection Form (DCF) and reporting package to the Federal Audit Clearinghouse (FAC) within the timeframe mandated by federal regulations. The submission was made after the required deadline of June 30, 2025. Action Taken: Manangement of Prairie Opportunity, Inc. will implement internal administartive contol procedures and policies to ensure that the data collection form and the annual audit is submitted to the federal clearinghouse in a timely manner. If you have any questions regarding this plan, please call me at (662) 323-3397. Sincerely, Tomeka Rhine Tomeka Rhine, Executive Director

View Audit 406172

Finding 1222569 (2025-001)

Material Weakness 2025

Miami-Dade Aviation Department

FL

Reporting Internal Control / Segregation of Duties

The Community Services Department (CSD) acknowledges the untimely submission of the October 2024 report. As indicated in the finding letter, this matter was an isolated event and not a systemic or programmatic concern. The delay resulted from temporary staffing shortages and leadership transitions d...

The Community Services Department (CSD) acknowledges the untimely submission of the October 2024 report. As indicated in the finding letter, this matter was an isolated event and not a systemic or programmatic concern. The delay resulted from temporary staffing shortages and leadership transitions during a high-demand fiscal period, rather than from deficiencies in internal controls. The Department maintains appropriate internal controls, clearly assigned responsibilities, and supervisory review processes. With stabilized leadership and strengthened monitoring procedures in place, the County is confident that timely grant reporting will continue moving forward. Although the County’s internal control structure remains sound and responsibilities are clearly assigned, the following measures have been reinforced to ensure continuity during future staffing transitions or high-volume periods: 1. Affirmation of Existing Internal Controls o Confirmed that established internal controls over grant reporting remain appropriate and effective. o Reaffirmed clearly designated staff responsible for preparation, review, and submission of grant reports. 2. Enhanced Deadline Monitoring o Strengthened use of a centralized tracking log 3. Backup Coverage and Cross-Training o Identified backup personnel to ensure continuity during staff vacancies or absences. 4. Strengthened Management Oversight o With the new Fiscal Division Director in place, oversight and monitoring of grant reporting timelines have been reinforced. Management now conducts proactive check-ins during peak workload periods, including Fiscal Close-Out. Responsible Parties: Fiscal Division Director, Fiscal Unit Management, Assigned Accountant 3 and 2. Implementation and Completion Date: Corrective actions began in November 2024 following stabilization of leadership positions. Enhanced monitoring and oversight procedures are consistently reviewed, evaluated, and refined throughout the year to increase operational efficiency, strengthen internal controls, and ensure continued compliance with all grant reporting requirements.

View Audit 406171

Finding 1222568 (2025-010)

Material Weakness 2025

Commonwealth of Puerto Rico Department of Natural and Environmental Resources

PR

School Nutrition Programs Reporting

VIEWS OF RESPONSIBLE OFFICIALS The Puerto Rico Department of Education (PRDE) acknowledges the audit finding presented by the auditors regarding the timeliness of FFATA reporting to the FSRS portal under the Child Nutrition Cluster (ALN 10.553, 10.555, and 10.559). As noted by the auditors, PRDE sta...

VIEWS OF RESPONSIBLE OFFICIALS The Puerto Rico Department of Education (PRDE) acknowledges the audit finding presented by the auditors regarding the timeliness of FFATA reporting to the FSRS portal under the Child Nutrition Cluster (ALN 10.553, 10.555, and 10.559). As noted by the auditors, PRDE staff have continued implementing corrective measures in response to this requirement since it was first identified as Finding 2024-011. The delays identified during the current fiscal year were related primarily to the reporting of contract amendments, and the PRDE recognizes the need to fully resolve this repeat condition. The Child Nutrition program has already developed and begun implementing its corrective action plan, which includes reinforced monitoring procedures and designated tracking responsibilities for all subaward and contract amendment reporting obligations. With these measures in place, the PRDE expects to submit all required FFATA reports for subaward obligations and contract amendments within the timeframe established under 2 CFR Part 170 going forward. IMPLEMENTATION DATE Implemented on Fiscal Year 2025-2026 RESPONSIBLE PERSON Odalis Menard AESAN Director Lourdes García Santiago AESAN Sub-Director

View Audit 406169

Finding 1222562 (2025-009)

Material Weakness 2025

Commonwealth of Puerto Rico Department of Natural and Environmental Resources

PR

Reporting § 200.512

VIEWS OF RESPONSIBLE OFFICIALS The Puerto Rico Department of Education (PRDE) acknowledges the late submission of the Data Collection Form and Reporting Package for the fiscal year ended June 30, 2025, and recognizes the importance of timely compliance with 2 CFR §200.512(a)(1). The PRDE respectfull...

VIEWS OF RESPONSIBLE OFFICIALS The Puerto Rico Department of Education (PRDE) acknowledges the late submission of the Data Collection Form and Reporting Package for the fiscal year ended June 30, 2025, and recognizes the importance of timely compliance with 2 CFR §200.512(a)(1). The PRDE respectfully offers the following additional context regarding the factors that contributed to the delay, several of which were outside the Department's control. First, the PRDE acknowledges that the reconciliation of expenditures related to certain federally funded disaster recovery programs administered outside the Department — specifically the CDBG-DR (ALN 14.228) and Disaster Grants – Public Assistance (ALN 97.036) programs — presented recurring challenges. Information regarding these expenditures is provided to the PRDE by external program administrators, and the data received did not always arrive with sufficient clarity to allow the Department to perform the corresponding adjustments to the SEFA without additional follow-up and clarification. Second, and as the principal factor affecting the submission timeline, the 2025 OMB Compliance Supplement was not released until November 2025, substantially later than its customary release date and later than in prior audit cycles. The Department's external auditors communicated to the PRDE that audit testing of major programs could not begin until the Compliance Supplement was available, since it establishes the compliance requirements and audit procedures applicable to each major program. As a direct consequence of this delay, which is publicly documented and affected single audits nationwide, the available window to complete required testing was substantially compressed, and an extension of the submission deadline was requested due to the limited time remaining to perform the necessary audit procedures. The PRDE notes that while it continues to strengthen its internal procedures for accumulating and reconciling SEFA-related information — particularly for programs administered by external entities — the timing of the late submission for this audit cycle was significantly influenced by the delayed availability of the Compliance Supplement, a circumstance affecting auditees and auditors broadly and not unique to the Department. IMPLEMENTATION DATE Fiscal Year 2026-2027 RESPONSIBLE PERSON Evelyn E. Rodríguez Cardé, MBA Director of Finance

View Audit 406169

Finding 1222518 (2025-002)

Material Weakness 2025

Commonwealth of Puerto Rico Department of Natural and Environmental Resources

PR

Equipment & Real Property Management Internal Control / Segregation of Duties Questioned Costs § 200.302 § 200.403

VIEWS OF RESPONSIBLE OFFICIALS The Puerto Rico Department of Education (PRDE) accepts the finding identified by the auditors regarding the incorrect coding of five (5) reimbursement payments for equipment purchases in account E6170 (Donations and Contributions to Private Entities), rather than in th...

VIEWS OF RESPONSIBLE OFFICIALS The Puerto Rico Department of Education (PRDE) accepts the finding identified by the auditors regarding the incorrect coding of five (5) reimbursement payments for equipment purchases in account E6170 (Donations and Contributions to Private Entities), rather than in the appropriate E5000-series accounts, and the omission of said assets from the institutional property register. The PRDE has initiated the necessary corrective actions to address this deficiency. Specifically, all assets included within the affected reimbursement transactions have been identified, and a detailed inventory is being prepared in which each asset is classified according to the capitalization criteria established in the Restart Program Fiscal Process Guide (unit cost equal to or greater than $500.00 and useful life greater than two (2) years). This inventory distinguishes between capitalizable equipment (E5000 series) and non-capitalizable equipment (E4414), in accordance with applicable regulatory requirements. Once finalized, the inventory file will be submitted to the PRDE’s Office of Property for review and mass upload into the institutional property register, ensuring that all assets acquired with Restart Program funds are properly recorded under PRDE ownership, in compliance with Section 102(h)(3) of the 2018 Hurricane Relief Act and the requirements of 2 CFR §200.302(b)(3)(4). IMPLEMENTATION DATE Fiscal Year 2026-2027 RESPONSIBLE PERSON Edgar Delgado Serrano Interim Director of Federal Affairs Office

View Audit 406169

Finding 1222517 (2025-001)

Material Weakness 2025

Commonwealth of Puerto Rico Department of Natural and Environmental Resources

PR

Matching / Level of Effort / Earmarking Questioned Costs Subrecipient Monitoring § 200.302 § 200.403

VIEWS OF RESPONSIBLE OFFICIALS The Puerto Rico Department of Education (PRDE) acknowledges the audit findings presented by the auditors regarding the Activities Allowed or Unallowed / Allowable Costs/Cost Principles compliance requirement under the IDEA Special Education Cluster (Assistance Listing ...

VIEWS OF RESPONSIBLE OFFICIALS The Puerto Rico Department of Education (PRDE) acknowledges the audit findings presented by the auditors regarding the Activities Allowed or Unallowed / Allowable Costs/Cost Principles compliance requirement under the IDEA Special Education Cluster (Assistance Listing Nos. 84.027 and 84.173). The PRDE recognizes that certain deficiencies identified by the auditors relate to inconsistencies in supporting documentation, documentation retained in departmental systems, and the need to strengthen administrative controls over the documentation supporting disbursements for private educational and therapy services. The Department further acknowledges opportunities to improve the consistency of information maintained in supporting schedules, contract documentation, proposals, and other records used during the invoice review and payment process. The PRDE respectfully clarifies that, in several instances identified during the audit, the questioned conditions were attributable to documentation inconsistencies, system-generated reporting errors, or documentation that supports the transactions but was not maintained or presented in a standardized manner during the audit process. Specifically, the Department notes that adjustment reports recorded in the financial system agreed with the disbursement vouchers despite errors identified in certain Excel master schedules; that invoice validations performed by the Centers are based on the corresponding "Carta de Aprobación de Consulta de Ubicación," which establishes the approved services and applicable rates for each student; and that federal regulations authorize IDEA Part B (ALN 84.027) funds to be used for eligible children ages 3 through 21, including expenses otherwise allowable under the Preschool Grant (ALN 84.173), as permitted under 34 CFR §300.202(a). With respect to students identified as over 21 years of age, the PRDE conducted an individual review of the affected student records and determined that the population includes students who exited the program at age 21 as well as students for whom documentation exists supporting the continuation of services through individualized educational determinations, transition planning activities, or compensatory educational services. The Department recognizes, however, that documentation supporting these determinations was not maintained in a standardized manner that facilitated timely retrieval during the audit. The PRDE further acknowledges that improvements are needed to ensure that procurement documentation, contract amendments, proposals, invoice support, Excel master schedules, and student-level supporting documentation are complete, accurate, consistent, and readily available for audit and monitoring purposes. Accordingly, the Department accepts the auditors' recommendations and is committed to implementing corrective actions designed to strengthen internal controls, standardize documentation practices, improve supervisory review procedures, and enhance coordination among the responsible program and administrative units IMPLEMENTATION DATE Fiscal Year 2026-2027 RESPONSIBLE PERSON Enid Diaz Nieves Executive Director III Alayra Figueroa Gonzalez Associate Secretary for Special Education

View Audit 406169

Finding 1222435 (2025-001)

Material Weakness 2025

American Indian Higher Education Consortium

VA

Reporting Subrecipient Monitoring

Management Response AIHEC concurs with this finding. The delays resulted from insufficient monitoring of reporting deadlines across multiple federal awards managed by different program staff, compounded by turnover in the Grants Management function during the fiscal year. AIHEC has hired a full-time...

Management Response AIHEC concurs with this finding. The delays resulted from insufficient monitoring of reporting deadlines across multiple federal awards managed by different program staff, compounded by turnover in the Grants Management function during the fiscal year. AIHEC has hired a full-time Grants & Compliance Manager, who joined the organization in December 2025 and has direct responsibility for tracking and ensuring timely submission of all federal financial and performance reports. In addition, AIHEC implemented a new grant management software system, Grant Vantage, beginning in April 2026. Grant Vantage maintains reporting schedules for each federal award, including the applicable lead times for RPPR, SF-425, and FFATA subaward reporting, and serves as a centralized repository for completed reports and submission documentation. Grant Vantage is continuing to be rolled out for full use across the organization, with the Grants & Compliance Manager overseeing adoption by program staff and the Director of Finance providing final review and submission sign-off. AIHEC will also continue to provide refresher training to program and finance staff on FFATA subaward reporting thresholds and procedures as the system rollout is completed. Estimated Completion Date Implemented April 2026; full organization-wide rollout by September 30, 2026. Responsible Party Angela Toles, Grants & Compliance Manager, with oversight by Diane Robertsy, Director of Finance.

View Audit 406143

Finding 1222417 (2025-003)

Material Weakness 2025

City of Coral Gables, Florida

FL

Reporting

Identifying number: 2025-003 Finding: The City’s original SEFA draft excluded $66,963 of payroll expenditures related to ALN 95.001, resulting in incomplete reporting of federal expenditures. Corrective Actions Planned: Beginning in fiscal year 2026, management will ensure that complete population o...

Identifying number: 2025-003 Finding: The City’s original SEFA draft excluded $66,963 of payroll expenditures related to ALN 95.001, resulting in incomplete reporting of federal expenditures. Corrective Actions Planned: Beginning in fiscal year 2026, management will ensure that complete population of grant program expenditures are reconciled to the general ledger and project accounting module as part of the procedure in preparing the schedule of expenditures of federal awards. This corrective action plan has been assigned to Diana Gomez, Finance Director and will be completed by November 30, 2026, for all expenditures related to fiscal year 2026.

View Audit 406142

Finding 1222390 (2025-010)

Material Weakness 2025

City of Amarillo, Texas

TX

Subrecipient Monitoring Internal Control / Segregation of Duties Procurement, Suspension & Debarment § 200.303

Finding 2025-010: Reporting – FFATA Subawards Airport Improvement Program View of responsible officials: The City agrees with the finding. Corrective action plan: The City will establish sufficient procedures or oversight controls to identify first-tier subawards subject to FFATA reporting requireme...

Finding 2025-010: Reporting – FFATA Subawards Airport Improvement Program View of responsible officials: The City agrees with the finding. Corrective action plan: The City will establish sufficient procedures or oversight controls to identify first-tier subawards subject to FFATA reporting requirements and ensure the required subaward information was submitted timely. Additionally, personnel responsible for grant administration were not sufficiently aware of the applicable FFATA reporting requirements Implementation dates: July 31, 2026 Responsible person: Lola Ogunremi, Chief Financial Officer

View Audit 406137

Finding 1222371 (2025-007)

Material Weakness 2025

City of Amarillo, Texas

TX

Internal Control / Segregation of Duties Questioned Costs Subrecipient Monitoring § 200.302 § 200.303

Finding 2025-007: Reporting – FAA Form 5100-127 Airport Improvement Program View of responsible officials: The City agrees with the finding. Corrective action plan: The City will enhance its existing reconciliation and review procedures by requiring documented tie-outs of FAA Form 5100-127 amounts t...

Finding 2025-007: Reporting – FAA Form 5100-127 Airport Improvement Program View of responsible officials: The City agrees with the finding. Corrective action plan: The City will enhance its existing reconciliation and review procedures by requiring documented tie-outs of FAA Form 5100-127 amounts to the general ledger, retention of supporting documentation for all reported amounts, and evidence of supervisory review prior to submission. Implementation dates: September 30, 2026 Responsible person: Lola Ogunremi, Chief Financial Officer

View Audit 406137

Finding 1222353 (2025-003)

Material Weakness 2025

City of Amarillo, Texas

TX

HUD Housing Programs Reporting Significant Deficiency § 200.303

Finding 2025-003: Reporting – SEMAP Housing Choice Vouchers View of responsible officials: The City agrees with the finding. Corrective action plan: SEMAP certifications must be formally approved by the City’s governing board and signed by appropriate management prior to submission. Implementation d...

Finding 2025-003: Reporting – SEMAP Housing Choice Vouchers View of responsible officials: The City agrees with the finding. Corrective action plan: SEMAP certifications must be formally approved by the City’s governing board and signed by appropriate management prior to submission. Implementation dates: September 30, 2026 Responsible person: Lola Ogunremi, Chief Financial Officer

View Audit 406137

Finding 1222350 (2025-002)

Material Weakness 2025

City of Amarillo, Texas

TX

HUD Housing Programs Reporting Subrecipient Monitoring § 200.303

Finding 2025-002: Reporting – HUD 50058 Housing Choice Vouchers View of responsible officials: The City agrees with the finding. Corrective action plan: Management acknowledges that the filings with HUD were not timely. Staff will work to ensure filings take place within 60 days of the effective dat...

Finding 2025-002: Reporting – HUD 50058 Housing Choice Vouchers View of responsible officials: The City agrees with the finding. Corrective action plan: Management acknowledges that the filings with HUD were not timely. Staff will work to ensure filings take place within 60 days of the effective date. Implementation dates: September 30, 2026 Responsible person: Lola Ogunremi, Chief Financial Officer

View Audit 406137

Finding 1222345 (2025-004)

Material Weakness 2025

Center for Independence of Individuals with Disabilities

CA

Allowable Costs / Cost Principles Subrecipient Monitoring Cash Management § 200.303 § 200.305 § 200.309 § 200.328 § 200.329

Provide all management staff with annual training on federal grant requirements, perform periodic internal reviews and a final year-end reconciliation, maintainall grant-related records on a shared organizational drive accessible to all responsible staff, provide formal onboarding and off boarding p...

Provide all management staff with annual training on federal grant requirements, perform periodic internal reviews and a final year-end reconciliation, maintainall grant-related records on a shared organizational drive accessible to all responsible staff, provide formal onboarding and off boarding procedures for federal grant management, and update the Finance Manual .

View Audit 406136

Finding 1222342 (2025-002)

Material Weakness 2025

Family Life Center, Inc.

AL

Reporting Internal Control / Segregation of Duties

The Organization has been working on improving controls over interim financial reports including review of related reconciliations and financial statements by the board and management since this finding was originally reported. Improvements have been made but continuing work is being done to complet...

The Organization has been working on improving controls over interim financial reports including review of related reconciliations and financial statements by the board and management since this finding was originally reported. Improvements have been made but continuing work is being done to complete this. These additional controls are expected to be fully implemented for the fiscal year ending September 30, 2026.

View Audit 406128

Finding 1222311 (2025-001)

Material Weakness 2025

Housing Authority of the City of Winston-Salem

NC

HUD Housing Programs Questioned Costs Eligibility

Audit Firm: CohnReznick Period Covered by Audit October 1, 2024 - September 30, 2025 Corrective Action Plan Prepared By: Name: Nancy Thomas Position Chief Financial Officer and Executive Vice President Telephone Number: 336-917-6066 Findings and Questioned Costs - Major Federal Award Program Audit F...

Audit Firm: CohnReznick Period Covered by Audit October 1, 2024 - September 30, 2025 Corrective Action Plan Prepared By: Name: Nancy Thomas Position Chief Financial Officer and Executive Vice President Telephone Number: 336-917-6066 Findings and Questioned Costs - Major Federal Award Program Audit Finding No. 2025-001; Eligibility and Reporting - Material Weakness-HCV Voucher Program Name of Federal Agency: Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster (Section 8 Housing Choice Vouchers Program; Mainstream Vouchers Program) Assistance Listing Number: 14.871; 14.879 Federal Award Identification Number and Year: NC012VO 2025; NC012EF 2025; NC012DV 2025 Criteria: In accordance with Uniform Guidance, internal controls are required to be in place to ensure compliance with federal requirements and to maintain complete and accurate participant files as noted in CFR 5.233, 982.151, 982.405(d), and 982.516. Condition and Context: Our testing of 40 participant files noted the following: • No support was able to be provided regarding tenant lease files for 4 of 40 participant selections. • No tenant addendum was able to be provided for 1 of 40 participant selections. • No HAP contract was able to be provided for 2 of 40 participant selections. • No electronic income verification was done within the required time period for 13 of 40 participant selections. • Annual recertifications were not completed timely for 3 of 40 participant selections. Effect or Potential Effect: The Housing Authority of the City of Winston-Salem (“ASPIRE”) is not in compliance with federal requirements regarding Eligibility and Reporting. Cause: Tenant lease files were not maintained, and tenant eligibility was not determined in accordance with Uniform Guidance. Questioned Costs: Unknown Identification as a Repeat Finding: Repeat finding 2024-001 Recommendation: ASPIRE should maintain complete and accurate participant files to ensure compliance with federal requirements. Views of Responsible Official(s) and Planned Corrective Actions: ASPIRE will improve internal controls to maintain complete and accurate participant files to ensure compliance with federal requirements. CORRECTIVE ACTION TO BE TAKEN: 1. No support was able to be provided regarding tenant lease files for 4 of 40 participant selections. Response: The agency underwent a relocation of its main office and experienced the loss of five Housing Choice Voucher Specialists, which necessitated the engagement of a contractor to assume responsibility for more than 1,800 participant case files. Due to the transition of these caseloads to the contractor and the limited storage capacity at the agency's new office location, physical participant files were transferred to an off-site storage facility. During the process of boxing, inventorying, and relocating more than 5,000 physical files, four participant files were inadvertently misplaced. Upon discovery, management took immediate action to reconstruct the missing files using available electronic records, third-party documentation, and information maintained within Yardi. To mitigate the risk of future file loss and strengthen document retention practices, the agency implemented enhanced procedures effective January 1, 2025. Staff are now required to electronically upload and attach all supporting documentation to the applicable HUD Form 50058 action within Yardi, in addition to maintaining the required physical file. This dual-record retention process ensures that participant documentation is preserved in both electronic and hard-copy formats, providing redundancy and improving accessibility, accountability, and compliance with record retention requirements. 2. No tenant addendum was able to be provided for 1 of 40 participant selections. Response: The absence of the tenant addendum was the result of an oversight by the Housing Choice Voucher Specialist. To prevent similar occurrences in the future, staff have been reminded of the requirement to maintain complete participant files, including all required HUD forms and addenda. In addition, the agency now requires that tenant addendums and all supporting documentation be maintained in both the participant's electronic file within Yardi and the physical file. This dual-record retention process provides an additional level of quality control and helps ensure that required documentation is readily available for future reviews and audits. 3. No HAP contract was able to be provided for 2 of 40 participant selections. Response: The agency was unable to provide a copy of the HAP Contract for two of the forty participant files selected for review. This was the result of an oversight in the maintenance of the participant files. Upon notification, management conducted a review of the files and implemented corrective measures to strengthen document retention practices. Staff have been retrained on the requirement to maintain complete participant files, including all required Housing Assistance Payment (HAP) Contracts and supporting documentation. In addition, the agency now requires that HAP Contracts be maintained in both the participant's electronic file within Yardi and the physical file. Management has also implemented periodic file reviews to verify that required documentation is present and properly retained. These measures are intended to improve recordkeeping controls and prevent similar occurrences in the future. 4. No electronic income verification was done within the required time period for 13 of 40 participant selections. Response: Electronic Income Verification (EIV) reports were not completed within the required timeframe for 13 of the 40 participant files selected for review. The delays were the result of staff oversight and workload challenges experienced during a period of significant staffing turnover within the Housing Choice Voucher Program. To address this issue, Housing Choice Voucher staff have been retrained on EIV requirements, including required timeframes for obtaining and reviewing EIV reports. Management has reinforced expectations regarding timely completion and documentation of EIV reviews. Additionally, the department auditor conducts monthly reviews of a random sample of participant files to verify compliance with EIV requirements and identify any deficiencies requiring corrective action. These measures are intended to strengthen compliance monitoring and ensure EIV reviews are completed within HUD-required timeframes. 5. Annual recertifications were not completed timely for 3 of 40 participant selections. Response: Annual recertifications were not completed within the required timeframe for three of the forty participant files selected for review. The delays were primarily attributable to staffing shortages and caseload transitions that occurred during the audit period, resulting in increased workloads and processing delays. To address this issue, staff have been retrained on annual recertification requirements and processing timelines. Management has reinforced expectations regarding the timely completion of annual recertifications and implemented additional monitoring procedures to track upcoming and overdue recertifications. The Director has also developed an Annual Recertification Calendar for staff to follow. This calendar outlines each step of the annual recertification process and establishes deadlines to ensure timely completion of all required actions. In addition, the department auditor conducts monthly reviews of a random sample of participant files to verify compliance and identify any deficiencies requiring corrective action. These measures are intended to improve timeliness, strengthen oversight, and ensure annual recertifications are completed in accordance with HUD requirements.

View Audit 406123

Finding 1222287 (2025-005)

Material Weakness 2025

Jackson County, Florida

FL

Matching / Level of Effort / Earmarking Questioned Costs Reporting § 200.303 § 200.326

Lynsey Darragh - Administrative Services Director, Lucas Mayo – Grant Administrator and Tony Pumphrey – Finance Director will develop procedures to ensure that all program reports have documented reviews; are submitted timely and that are reconciled to the accounting records before submission. Antic...

Lynsey Darragh - Administrative Services Director, Lucas Mayo – Grant Administrator and Tony Pumphrey – Finance Director will develop procedures to ensure that all program reports have documented reviews; are submitted timely and that are reconciled to the accounting records before submission. Anticipated completion date is July 31, 2026.

View Audit 406113

Finding 1222243 (2025-002)

Material Weakness 2025

Tri-County Regional Planning Commission

MI

Questioned Costs Special Tests & Provisions Material Weakness

2025-002 – Journal Entries and Disbursement Approval Controls Auditors Description of Condition and Effect: During our testing of journal entries and accounts payable disbursements, we noted certain internal control processes were not consistently performed or documented. This included 5 out of 40 i...

2025-002 – Journal Entries and Disbursement Approval Controls Auditors Description of Condition and Effect: During our testing of journal entries and accounts payable disbursements, we noted certain internal control processes were not consistently performed or documented. This included 5 out of 40 instances where supporting documentation was not readily available for journal entries and 19 out of 40 instances where invoices were not consistently reviewed and approved by an individual independent of the preparer in accordance with Commission policy. These conditions are attributable to insufficiently formalized procedures and enforcement of controls governing journal entry support and disbursement review and approval. As a result, there is an increased risk that unsupported or inappropriate transactions could be recorded and that disbursements may be processed without proper authorization, increasing the risk of errors or irregularities not being detected in a timely manner. Auditor Recommendation: We recommend that the Commission strengthen procedures to ensure that all journal entries are supported by appropriate documentation and that all disbursements are reviewed and approved in accordance with established policies, with evidence of such review maintained. Corrective Action: Management will implement procedures to ensure all journal entries are adequately supported and that invoice approvals are documented in accordance with policy requirements. Responsible Person: Jim Snell Executive Director, Sydney Sheaks Finance Manager Anticipated Completion Date: 9/30/2026

View Audit 406105

Corrective Action Plans

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