Corrective Action Plans

Finding 1215792 (2025-017)

Material Weakness 2025

State of Connecticut Drinking Water Fund - State Revolving Fund

CT

Eligibility HUD Housing Programs Reporting

Recommendation: The Department of Social Services should strengthen internal controls to ensure that only eligible recipients receive temporary family assistance in accordance with federal laws and the Temporary Assistance for Needy Families State Plan. Corrective Action Plan as Reported by the Depa...

Recommendation: The Department of Social Services should strengthen internal controls to ensure that only eligible recipients receive temporary family assistance in accordance with federal laws and the Temporary Assistance for Needy Families State Plan. Corrective Action Plan as Reported by the Department of Social Services: The Department agrees with this finding. The error occurred due to a system issue that did not trigger the discontinuance of benefits for a household that had received 60 months of time-limited benefits. The Department will take action to correct the system functionality to ensure incorrect payments are not made to households that have received 60 months of time-limited benefits. An overpayment has been created, and the recovery of the error amount is in process. Anticipated Completion Date: December 31, 2026 Department of Social Services Contact Person: Dan Giacomi, Program Division Director (860) 424-5080

View Audit 402418

Finding 1215773 (2025-027)

Material Weakness 2025

State of Connecticut Drinking Water Fund - State Revolving Fund

CT

Internal Control / Segregation of Duties Eligibility Reporting § 200.303

Recommendation: The Department of Social Services should strengthen internal controls to identify the agency responsible for each client’s eligibility determination and document benefit iteration approvals for the Summer Electronic Benefits Transfer Program for Children. Corrective Action Plan as Re...

Recommendation: The Department of Social Services should strengthen internal controls to identify the agency responsible for each client’s eligibility determination and document benefit iteration approvals for the Summer Electronic Benefits Transfer Program for Children. Corrective Action Plan as Reported by the Department of Social Services: The Department disagrees with this finding. Condition #1: Eligibility for the Summer EBT program is established through multiple pathways: receipt of Supplemental Nutrition Assistance Program (SNAP) benefits, Temporary Family Assistance (TFA), or HUSKY A coverage, and through applying for and receiving an eligibility determination for either the National School Lunch Program or the Summer EBT program itself. Determining eligibility is a shared responsibility between DSS and the State Department of Education (SDE), and children qualify through multiple pathways simultaneously. DSS maintains a record within its eligibility system and compiles reports of all eligible children. When eligibility is established through any additional means, the child’s record is then analyzed against all previous issuances to ensure duplicate participation and double issuance does not occur. Title 7 CFR Part 292.16 (a)(5)(i) requires the Summer EBT agency to establish a master issuance file which contains all information needed to identify eligible children, issue Summer EBT benefits, record the participation activity for each household and supply all information necessary to fulfill reporting requirements. The agency is not required to specify which program(s) were used to determine eligibility, which is reasonable given that there may be multiple overlapping avenues of eligibility. The implication that DSS is somehow not compliant or able to identify the source of eligibility is inaccurate. DSS can identify this information on an individual basis through reviewing the child’s receipt of SNAP, TFA, HUSKY A, or through its ongoing coordination and communication with SDE. Condition #2: It is not a requirement of the business systems division to request approval for each issuance. Each year the Department issues benefits for this program in a consistent manner. Since there were no changes to the process during the audit period, approval was not sought for the issuances. Business systems would only seek approval if there was a change to the process. Anticipated Completion Date: N/A Department of Social Services Contact Person: Dan Giacomi, Program Division Director 860-424-5080

View Audit 402418

Finding 1215734 (2025-001)

Material Weakness 2025

Volunteers of America Mid-States Inc. and Affiliates

KY

Reporting

Corrective Action Plan This corrective action plan was developed in response to the audit finding related to the timely submission of Federal Financial Reports (FFRs). The purpose of this plan is to improve the controls that were previously in place to ensure FFRs are filed accurately and by require...

Corrective Action Plan This corrective action plan was developed in response to the audit finding related to the timely submission of Federal Financial Reports (FFRs). The purpose of this plan is to improve the controls that were previously in place to ensure FFRs are filed accurately and by required deadlines. Finding While the audit noted that the control for tracking the timely submission of Federal Financial Reports (FFRs) under the Substance Abuse and Mental Health Services program could have been more robust at the time of reporting, it is important to recognize that this was an isolated administrative oversight rather than a systemic control failure. The organization has a strong history of compliance, as evidenced by its unmodified (clean) audit opinion, absence of material weaknesses or significant deficiencies in internal control over financial reporting, and its classification as a low-risk auditee. There were no questioned costs, penalties, or loss of funding associated with this issue, and all other compliance requirements for federal programs were met. Corrective Action The existing process has been improved to track FFR due dates and support timely submission. This process includes the use of Grantseeker, a grant tracking system that provides automated daily email reminders beginning two weeks prior to each submission deadline. Each reporting task is assigned to the staff member responsible for completion of the filing. Oversight and Monitoring Oversight of the process is provided by a Grantseeker system administrator, who monitors task assignments and reminder notifications to help ensure reporting deadlines are met. This additional level of review supports accountability and helps confirm that required filings are completed in a timely manner. Responsible Party The staff member assigned to the specific grant is responsible for preparing and submitting the applicable FFR. The Grantseeker system administrator is responsible for oversight of the tracking process. Expected Outcome Implementation of this corrective action is expected to strengthen internal controls over grant reporting and ensure timely submission of all required Federal Financial Reports.

View Audit 402408

Finding 1215730 (2025-004)

Material Weakness 2025

YWCA of Greater Portland

OR

Reporting Internal Control / Segregation of Duties

Management acknowledges the late submission and attributes the delay primarily to senior management turnover occurring during the audit completion period. Management has taken corrective action by clarifying roles and responsibilities for Single Audit submissions, establishing internal timelines ali...

Management acknowledges the late submission and attributes the delay primarily to senior management turnover occurring during the audit completion period. Management has taken corrective action by clarifying roles and responsibilities for Single Audit submissions, establishing internal timelines aligned with Uniform Guidance deadlines, and assigning oversight responsibility to ensure future Data Collection Forms and reporting packages are submitted timely.

View Audit 402403

Finding 1215723 (2025-001)

Material Weakness 2025

THE DIAPER BANK OF CONNECTICUT, INC.

CT

Internal Control / Segregation of Duties Reporting

The Organization will implement procedures to ensure that the financial statements are prepared in accordance with generally accepted accounting principles. We will expand our staff to include a contracted Chief Financial Officer that has an understanding of US GAAP nonprofit accounting in order to ...

The Organization will implement procedures to ensure that the financial statements are prepared in accordance with generally accepted accounting principles. We will expand our staff to include a contracted Chief Financial Officer that has an understanding of US GAAP nonprofit accounting in order to provide the necessary amount of oversight such that our financial reporting on a monthly. quarterly, and annual basis will be in line with US GAAP principles

View Audit 402398

Finding 1215720 (2025-001)

Material Weakness 2025

Monroe School District No. 103

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Material Weakness

The district will implement a process to create and maintain documentation for supplemental contracts and substitute employees serving in vacant positions that clearly identifies the applicable cost objectives and includes employee signatures. These records will be retained and maintained for audit ...

The district will implement a process to create and maintain documentation for supplemental contracts and substitute employees serving in vacant positions that clearly identifies the applicable cost objectives and includes employee signatures. These records will be retained and maintained for audit purposes.

View Audit 402385

Finding 1215710 (2025-003)

Material Weakness 2025

Marysville School District No. 25

WA

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

The District concurs with the finding and will implement a comprehensive corrective action plan to strengthen internal controls over time-and-effort reporting and ensure full compliance with federal regulations and OSPI guidance, including OSPI Bulletin 039-24. Specifically, the District will: • Con...

The District concurs with the finding and will implement a comprehensive corrective action plan to strengthen internal controls over time-and-effort reporting and ensure full compliance with federal regulations and OSPI guidance, including OSPI Bulletin 039-24. Specifically, the District will: • Conduct a districtwide review of all federally funded positions to ensure appropriate time-and-effort documentation requirements are identified and applied. • Implement standardized procedures for time-and-effort documentation, including the use of semi-annual certifications, monthly personnel activity reports (PARs), or approved fixed schedule systems, as applicable. • Revise and formalize written procedures governing time-and-effort reporting to ensure clarity, consistency, and compliance. • Establish a secondary review process to verify completeness and accuracy of employee classifications and required documentation. • Provide training to applicable staff on time-and-effort requirements and documentation standards. • Implement ongoing monitoring and periodic internal reviews to ensure documentation is completed timely, properly approved, and retained in accordance with requirements. These actions are designed to ensure payroll costs charged to federal programs are fully supported, accurate, and compliant with applicable laws and regulations.

View Audit 402363

Finding 1215706 (2025-004)

Material Weakness 2025

Marysville School District No. 25

WA

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

The District concurs with the finding and will implement a comprehensive corrective action plan to strengthen internal controls over time-and-effort reporting and ensure full compliance with federal regulations and OSPI guidance, including OSPI Bulletin 039-24. Specifically, the District will: • Con...

The District concurs with the finding and will implement a comprehensive corrective action plan to strengthen internal controls over time-and-effort reporting and ensure full compliance with federal regulations and OSPI guidance, including OSPI Bulletin 039-24. Specifically, the District will: • Conduct a districtwide review of all federally funded positions to ensure appropriate time-and-effort documentation requirements are identified and applied. • Implement standardized procedures for time-and-effort documentation, including the use of semi-annual certifications, monthly personnel activity reports (PARs), or approved fixed schedule systems, as applicable. • Revise and formalize written procedures governing time-and-effort reporting to ensure clarity, consistency, and compliance. • Establish a secondary review process to verify completeness and accuracy of employee classifications and required documentation. • Provide training to applicable staff on time-and-effort requirements and documentation standards. • Implement ongoing monitoring and periodic internal reviews to ensure documentation is completed timely, properly approved, and retained in accordance with requirements. These actions are designed to ensure payroll costs charged to federal programs are fully supported, accurate, and compliant with applicable laws and regulations.

View Audit 402363

Finding 1215701 (2025-002)

Material Weakness 2025

Marysville School District No. 25

WA

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

The District concurs with the finding and will implement a comprehensive corrective action plan to strengthen internal controls over time-and-effort reporting and ensure full compliance with federal regulations and OSPI guidance, including OSPI Bulletin 039-24. Specifically, the District will: • Con...

The District concurs with the finding and will implement a comprehensive corrective action plan to strengthen internal controls over time-and-effort reporting and ensure full compliance with federal regulations and OSPI guidance, including OSPI Bulletin 039-24. Specifically, the District will: • Conduct a districtwide review of all federally funded positions to ensure appropriate time-and-effort documentation requirements are identified and applied. • Implement standardized procedures for time-and-effort documentation, including the use of semi-annual certifications, monthly personnel activity reports (PARs), or approved fixed schedule systems, as applicable. • Revise and formalize written procedures governing time-and-effort reporting to ensure clarity, consistency, and compliance. • Establish a secondary review process to verify completeness and accuracy of employee classifications and required documentation. • Provide training to applicable staff on time-and-effort requirements and documentation standards. • Implement ongoing monitoring and periodic internal reviews to ensure documentation is completed timely, properly approved, and retained in accordance with requirements. These actions are designed to ensure payroll costs charged to federal programs are fully supported, accurate, and compliant with applicable laws and regulations.

View Audit 402363

Finding 1215695 (2025-002)

Material Weakness 2025

Home Share 092-Hd017

MN

HUD Housing Programs Internal Control / Segregation of Duties Material Weakness

Supportive Housing for Persons with Disabilities (Section 811) – Assistance Listing No. 14.181 Recommendation: We recommend that management establish and implement a formal internal control to ensure that someone who did not prepare the HAP Voucher reviews them for accuracy before submission. The pr...

Supportive Housing for Persons with Disabilities (Section 811) – Assistance Listing No. 14.181 Recommendation: We recommend that management establish and implement a formal internal control to ensure that someone who did not prepare the HAP Voucher reviews them for accuracy before submission. The preparation and review should be documented with a signature and date to ensure there is a proper audit trail. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We will strengthen our internal controls by implementing a formal, documented review process to ensure that all monthly HAP Vouchers receive an independent review prior to submission to HUD. Beginning with the next reporting cycle, our HUD Consultant will be responsible for preparing the monthly HAP Voucher and assembling all supporting documentation. Once prepared, the voucher package will be forwarded to the Contract Accountant for an independent review. The Contract Accountant will verify the accuracy and completeness of the voucher, including agreement to tenant ledgers, mathematical accuracy, proper application of subsidy rules, and consistency with prior month activity. This review will be documented through a dated signature on the voucher cover sheet, establishing a clear audit trail and ensuring appropriate segregation of duties between preparation and review. This control will be incorporated into the monthly close process and performed consistently going forward to ensure accurate, compliant, and fully supported HAP Voucher submissions. Name(s) of the contact person(s) responsible for corrective action: Jes Cuoco Planned completion date for corrective action plan: April 1, 2026

View Audit 402351

Finding 1215689 (2025-001)

Material Weakness 2025

Vaughn College of Aeronautics and Technology

NY

Student Financial Aid Internal Control / Segregation of Duties Reporting

Finding No. 2025-001 – Reporting – Compliance and Internal Control (Significant Deficiency) Corrective Action Plan: The discrepancies identified during the current audit were determined to be timing-related issues associated with the transition and implementation of revised disbursement reporting an...

Finding No. 2025-001 – Reporting – Compliance and Internal Control (Significant Deficiency) Corrective Action Plan: The discrepancies identified during the current audit were determined to be timing-related issues associated with the transition and implementation of revised disbursement reporting and reconciliation procedures in order to address a similar compliance finding that was identified in the 2024 Single Audit. These discrepancies occurred while updated controls and monitoring processes were being fully integrated into daily operations. During the prior audit conducted on April 6, 2025, auditors identified discrepancies between institutional disbursement dates and the dates reflected in the Common Origination and Disbursement (COD) system for the 2023-2024 award year. Immediately upon identification of the issue in the 2024 Single Audit, the institution implemented corrective measures to ensure that institutional disbursement dates matched Common Origination and Disbursement (COD) reporting. Since May 2025, the following corrective actions have already been fully implemented: 1. Revised and strengthened reconciliation procedures between the Student Information System and COD to ensure accurate disbursement date reporting. 2. Implemented secondary review controls prior to transmitting disbursement records to COD. 3. Established ongoing internal monitoring and periodic reconciliation reviews to identify and resolve discrepancies promptly. 4. Conducted additional staff training regarding Title IV disbursement reporting requirements and COD reconciliation procedures. 5. Assigned designated personnel responsibility for continuous oversight and verification of disbursement date accuracy. 6. Corrected disbursement reporting processes to ensure institutional records align with COD reporting requirements moving forward. Anticipated Completion Date: Since May 2025, the institution has taken all necessary measures to address and correct the identified issues on a prospective basis. All corrective actions outlined above are currently in place and operational. The institution continues to monitor disbursement reporting and reconciliation processes to ensure ongoing compliance with federal Title IV regulations and accurate reporting to COD. Person(s) Responsible for Corrective Action: Beatriz Novoa-Cruz Associate Vice President of Enrollment 718-429-6600 ext. 114

View Audit 402343

Finding 1215686 (2025-002)

Material Weakness 2025

Renton School District No. 403

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Material Weakness

To address this issue and strengthen compliance controls, the District has implemented and will continue the following corrective actions: 1. Standardized Time-and-Effort Procedures The District has revised and standardized procedures for collecting, reviewing, and retaining time-and-effort document...

To address this issue and strengthen compliance controls, the District has implemented and will continue the following corrective actions: 1. Standardized Time-and-Effort Procedures The District has revised and standardized procedures for collecting, reviewing, and retaining time-and-effort documentation for all federally funded employees and substitutes charged to Title I and other federal programs. 2. Training and Guidance District staff responsible for payroll processing, federal program oversight, and school-level administration will receive annual training regarding federal time-andeffort requirements, including requirements for semiannual certifications, personnel activity reports, signature and date requirements, and retention expectations. 3. Centralized Monitoring and Review The District has updated its centralized review process to verify that all required timeand- effort documentation is completed accurately and retained timely before payroll expenditures are finalized and charged to federal programs. This review includes periodic monitoring by Business Services and Program staff. 4. Tracking and Documentation Controls The District is updating its tracking mechanisms, including standardized forms, submission deadlines, and periodic compliance checklists, to ensure required certifications are collected and retained for all applicable employees each reporting period. 5. Ongoing Compliance Monitoring District management will conduct periodic internal reviews of federally funded payroll documentation throughout the fiscal year to ensure continued compliance and to promptly address any deficiencies identified. The District expects these corrective actions to strengthen internal controls and ensure ongoing compliance with federal and OSPI requirements for time-and-effort documentation.

View Audit 402334

Finding 1215673 (2025-005)

Material Weakness 2025

Oakland County, Michigan

MI

HUD Housing Programs Material Weakness Reporting § 200.307

Reporting of Prior Year Program Income Auditor Description of Criteria, Condition, and Effect: In accordance with 2 CFR § 200.307, program income must be used in accordance with the terms and conditions of the federal award and must be accounted for and reported accurately. Recipients are required t...

Reporting of Prior Year Program Income Auditor Description of Criteria, Condition, and Effect: In accordance with 2 CFR § 200.307, program income must be used in accordance with the terms and conditions of the federal award and must be accounted for and reported accurately. Recipients are required to reconcile program income received and expended during the grant period to ensure it is used for allowable purposes and properly reflected in financial reports. Failure to reconcile and report program income may result in noncompliance with federal grant regulations and could impact the allowability of costs charged to the award. The County recognized a substantial amount of program income during the fiscal year ended September 30, 2025, for program income that was received in prior periods but incorrectly reported as unearned over many years. It is unclear what portion of this prior year unearned revenue was reported to the Department of Housing and Urban Development ("HUD") through the Integrated Disbursement and Information System ("IDIS") now that the revenue has been properly recognized in the general ledger. The County has a risk of inaccurately reporting program income to HUD. The County is also exposed to an increased risk noncompliance could occur and not be prevented or detected by the County's internal controls. Auditor Recommendation: We recommend the County review its prior year records to determine which portion of the currently recognized revenue has already been reported to HUD. Additionally, the County's Neighborhood and Housing Development ("NHD") department should coordinate with HUD to establish the appropriate approach for reporting and expending this program income going forward. Corrective Action: An in-depth review of all program income activity dating back to 1995 is currently underway within both the general ledger and the IDIS system. The purpose of this review is to determine the total amount of program income received and reported to HUD. Upon completion of the review, the County will collaborate with HUD to determine the appropriate use and expenditure of the identified funds in accordance with applicable program requirements. Responsible Persons: Khadija Walker-Fobbs Neighborhood and Housing Development Officer, Curtis Smith, Chief, Neighborhood and Housing Development and Brian J. Lefler, Chief Financial Officer Anticipated Completion Date: September 2026

View Audit 402331

Finding 1215654 (2025-004)

Material Weakness 2025

Oakland County, Michigan

MI

Reporting Material Weakness

Inaccurate Reporting/Lack of Independent Review and Approval of Reporting (Repeat) Auditor Description of Criteria, Condition, and Effect: Recipients of federal awards are required to report periodically on financial information, as specified by the grant agreement. Reported information should be su...

Inaccurate Reporting/Lack of Independent Review and Approval of Reporting (Repeat) Auditor Description of Criteria, Condition, and Effect: Recipients of federal awards are required to report periodically on financial information, as specified by the grant agreement. Reported information should be supported by the entity’s accounting records and subjected to an independent review and approval prior to submission in order to detect and correct any errors or omissions. Additionally, the PR-26 financial summary reports are submitted as part of the Consolidated Annual Performance Evaluation Report (CAPER) and should be properly reconciled to present all inflows and outflows of resources related to the program including the appropriate unexpended balance. During our audit procedures over the County's CDBG reporting, we noted that none of the reports were subject to an independent review and approval prior to submission in order to detect and correct potential errors or omissions until partway through the year under audit. We also noted that the PR-26 was submitted as required, but contained financial data that did not agree to the County's underlying accounting records. Expenditures were properly reported for the year under audit, but it was identified that the County had incorrectly reported its unexpended balance going back to 2020, when the unexpended balance was not properly carried over from the 2019 report to the 2020 report. This resulted in an incorrect unexpended balance which presented as a net negative unexpended balance in the current year report. The County submitted inaccurate reporting in its PR-26 that was inconsistent with other financial reports submitted and with the County's general ledger. The County is also exposed to an increased risk that future noncompliance could occur and not be prevented or detected by the County's internal controls until controls are consistently implemented across fiscal years. Auditor Recommendation: We recommend that the County implement necessary internal controls to ensure that proper review and approval is documented and reports agree to accounting records. Financial information being submitted to outside entities should be reviewed and approved by the Financial Services department to ensure that it is in agreement with the County's general ledger and consistent with other required financial reporting. Corrective Action: Management acknowledges that financial reporting requires enhanced controls and reconciliation procedures. A review of detailed reconciliation steps will be conducted to identify areas within current processes where regular reviews can be implemented to ensure accuracy and completeness. The County plans to implement this process by July FY2026, which will provide two full quarters of reviewed and monitored activity prior to year-end reporting. Responsible Persons: Khadija Walker-Fobbs Neighborhood and Housing Development Officer, Curtis Smith, Chief, Neighborhood and Housing Development and Brian J. Lefler, Chief Financial Officer Anticipated Completion Date: September 2026

View Audit 402331

Finding 1215635 (2025-003)

Material Weakness 2025

The Montrose Center

TX

Reporting

Finding #2025-003 – Reporting – Significant Deficiency and Other Noncompliance. Applicable federal programs: All programs. Condition and context: The SEFA originally provided by the Montrose Center did not reconcile to the underlying accounting records. Additionally, some funding was incorrectly rep...

Finding #2025-003 – Reporting – Significant Deficiency and Other Noncompliance. Applicable federal programs: All programs. Condition and context: The SEFA originally provided by the Montrose Center did not reconcile to the underlying accounting records. Additionally, some funding was incorrectly reported as state funding instead of federal. the Montrose Center failed to have procedures in place to identify and reflect all federal grants on the SEFA, have timely procedures to reconcile the federal expenditures to the federal program revenue or have timely review. Recommendation: Develop policies and procedures to identify and reflect all federal programs on the SEFA, reconcile the federal expenditures to the federal program revenue on a routine basis, and formalize the independent review process for the SEFA and grant billings. Planned corrective action: Management will develop written procedures to identify all federal awards, including federal funding received indirectly through state and other pass-through entities, by confirming the funding source tagging each award in the CYMA general ledger with a federal/state/local indicator. Federal expenditures will be reconciled to federal program revenue and grant billings on a routine basis, and the draft SEFA, supporting reconciliations, and grant billings will be subject to documented independent review by the Controller. Responsible officer: Michael McIntyre, Chief Administrative Officer. Estimated completion date: August 31, 2026.

View Audit 402329

Finding 1215621 (2025-004)

Material Weakness 2025

The Montrose Center

TX

Reporting Allowable Costs / Cost Principles HUD Housing Programs

Finding #2025-004 – Reporting – Significant Deficiency and Other Noncompliance. Applicable federal programs: U.S. Department of Health and Human Services, Assistance Listing #93.959, Block Grants for Prevention and Treatment of Substance Abuse, Recovery Support Services, Contract Number: HHS00013050...

Finding #2025-004 – Reporting – Significant Deficiency and Other Noncompliance. Applicable federal programs: U.S. Department of Health and Human Services, Assistance Listing #93.959, Block Grants for Prevention and Treatment of Substance Abuse, Recovery Support Services, Contract Number: HHS000130500013, Contract Year: 09/01/24-08/31/25; Prevention and Behavioral Health Promotion Youth Prevention Services, Contract Number: HHS001344700032, Contract Year: 09/01/24-08/31/25. Condition and context: During our testing of the Federal Financial Reports, we noted that the final financial status reports were submitted late and the reports did not have evidence of review and approval. Additionally, a recoupment of $33,541 was required by the funder upon review of the closeout report for contract number HHS000130500013. Recommendation: Re-emphasize policies and procedures to meet the grant reporting requirements and ensure that all reports are independently reviewed prior to submission. Planned corrective action: Management will maintain a grant reporting deliverables calendar covering all federal and state reporting requirements, with internal due dates set in advance of funder deadlines and assigned to a specific grant manager. No Federal Financial Report or closeout report will be submitted without documented independent review and approval by the Controller, with preparer, reviewer, and approver sign-off retained in the grant file alongside the supporting reconciliation to the CYMA general ledger. Responsible officer: Michael McIntyre, Chief Administrative Officer. Estimated completion date: August 31, 2026.

View Audit 402329

Finding 1215585 (2025-006)

Material Weakness 2025

Independent School District No. 622

MN

Reporting § 200.512

REPORTABLE NONCOMPLIANCE WITH FEDERAL REPORTING REQUIREMENTS – ALL FEDERAL PROGRAMS AWARDED UNDER THE UNIFORM GUIDANCE 2025-006 Federal Reporting Deadline Finding Summary Criteria – 2CFR Part 200, Subpart F, § 200.512(a)(1) requires the District’s audited Schedule of Expenditures Federal Awards (SEF...

REPORTABLE NONCOMPLIANCE WITH FEDERAL REPORTING REQUIREMENTS – ALL FEDERAL PROGRAMS AWARDED UNDER THE UNIFORM GUIDANCE 2025-006 Federal Reporting Deadline Finding Summary Criteria – 2CFR Part 200, Subpart F, § 200.512(a)(1) requires the District’s audited Schedule of Expenditures Federal Awards (SEFA) and federal reporting package to be submitted to the federal audit clearinghouse within the earlier of 30 calendar days after the receipt of the auditor’s report(s), or 9 months after the end of the audit period. Condition – The District’s audited SEFA and federal reporting package for the fiscal year ended June 30, 2025, were not submitted to the federal audit clearinghouse within nine months after the end of the audit period. Corrective Action Plan Actions Planned – The completion of the District’s audited annual financial statements for the year ended June 30, 2025, which is a required component of the federal reporting package, was delayed beyond the nine-month deadline, primarily due to turnover in the District’s finance department. District management will ensure that all information required to comply with federal reporting requirements will be completed and submitted in a timely manner going forward. Official Responsible – Josh Anderson, the District’s Director of Finance. Planned Completion Date – June 30, 2026. Disagreement With or Explanation of Finding – The District agrees with this finding. Plan to Monitor – Josh Anderson, the District’s Director of Finance, will monitor the year‑end financial closing and reporting process to ensure all federal and state reporting requirements are complied with in the future.

View Audit 402250

Finding 1215567 (2025-004)

Material Weakness 2025

Change Happens!

TX

Reporting

Finding #2025-004 – Significant Deficiency and Other Noncompliance. Applicable federal programs: U. S. Department of Health and Human Services, Direct Federal Funding, Cooperative Agreement to Support Navigators in Federally-facilitated Exchanges, Assistance Listing #93.332, Contract #NAVCA240482-01...

Finding #2025-004 – Significant Deficiency and Other Noncompliance. Applicable federal programs: U. S. Department of Health and Human Services, Direct Federal Funding, Cooperative Agreement to Support Navigators in Federally-facilitated Exchanges, Assistance Listing #93.332, Contract #NAVCA240482-01-00, Contract year: 08/27/24 – 08/26/25. U. S. Department of Health and Human Services, Direct Federal Funding, Affordable Care Act (ACA) Personal Responsibility Education Program, Assistance Listing #93.092, Contract #90AK0075-03-03, Contract year: 09/30/23 – 09/29/25. Condition and context: Civic Heart had not performed a reconciliation of federal expenditures resulting in errors in reported expenditures. Additionally, subrecipient expenditures were not identified for two programs. There was no independent review of the SEFA. Recommendation: Emphasize adherence to established policies and procedures to reconcile the federal expenditures to the federal program revenue on a routine basis and formalize the independent review process for the SEFA and grant billings. Planned corrective action: Management has implemented strengthened federal reporting and reconciliation procedures to improve accuracy and oversight related to federal expenditures and SEFA preparation. Corrective actions include: 1) Implementation of a formal SEFA preparation and reconciliation process requiring reconciliation of federal expenditures to the general ledger and supporting documentation. 2) Quarterly federal expenditure reviews to identify discrepancies and improve reporting accuracy throughout the fiscal year. 3) Development of centralized federal awards tracking procedures to monitor expenditures, reimbursement activity, subrecipient activity, grant balances, and reporting requirements. 4) Independent review procedures for preparation and review of the SEFA prior to annual audit submission. 5) Strengthened coordination between accounting personnel and program leadership to improve federal reporting accuracy and monitoring of subrecipient activity. 6) Periodic internal compliance reviews to evaluate federal reporting accuracy and compliance with grant requirements. Responsible officer: Anita Bates, Chief Executive Officer. Estimated completion date: Implementation is underway with continued monitoring and expected to be fully operational by August 31, 2026.

View Audit 402238

Finding 1215565 (2025-002)

Material Weakness 2025

Change Happens!

TX

Allowable Costs / Cost Principles Cash Management Reporting

Finding #2025-002 – Significant Deficiency. Applicable federal programs: U. S. Department of Health and Human Services, Direct Federal Funding, Cooperative Agreement to Support Navigators in Federally-facilitated Exchanges, Assistance Listing #93.332, Contract #NAVCA240482-01-00, Contract year: 08/2...

Finding #2025-002 – Significant Deficiency. Applicable federal programs: U. S. Department of Health and Human Services, Direct Federal Funding, Cooperative Agreement to Support Navigators in Federally-facilitated Exchanges, Assistance Listing #93.332, Contract #NAVCA240482-01-00, Contract year: 08/27/24 – 08/26/25. U. S. Department of Health and Human Services, Direct Federal Funding, Affordable Care Act (ACA) Personal Responsibility Education Program, Assistance Listing #93.092, Contract #90AK0075-03-03, Contract year: 09/30/23 – 09/29/25. Condition and context: Civic Heart’s internal controls over grant billing requests were not sufficient to ensure that grant billing requests were consistently independently reviewed and approved. Transaction testing for details and internal controls revealed the following: 1) 3 out of 12 grant billing requests did not have evidence of independent review and approval. 2) 3 of 3 pay period journal entries used to allocate payroll expense between departments and funding sources did not have evidence of independent review and approval. Recommendation: Same as finding reported as #2025-001. Planned corrective action: Management has implemented enhanced grant reimbursement and compliance procedures designed to strengthen oversight, documentation standards, and review procedures. Corrective actions include: 1) Implementation of a formal grant reimbursement and drawdown review process requiring complete supporting documentation prior to submission. 2) Required supporting documentation now includes invoices, proof of payment, payroll documentation, time and effort certifications where applicable, budget verification, and grant period review. 3) All federal reimbursement requests require independent review and approval by the Chief Executive Officer prior to submission to ensure compliance with grant terms and conditions, Uniform Guidance requirements, federal regulations, and GAAP reporting standards. 4) Monthly grant compliance meetings are conducted to review reimbursement activity, grant expenditures, reporting deadlines, allowable costs, and budget variances. 5) Program and finance staff are participating in ongoing grant compliance training related to federal regulations, grant-specific requirements, documentation standards, allowable costs, and financial management procedures. Training efforts include periodic reviews and testing where applicable to reinforce compliance expectations. 6) Implementation of standardized grant tracking and reimbursement monitoring procedures to improve accountability and strengthen oversight. 7) Periodic internal compliance reviews of grant files, reimbursement requests, and supporting documentation to identify and address deficiencies proactively. Responsible officer: Anita Bates, Chief Executive Officer Estimated completion date: Implementation is underway with continued monitoring and expected to be fully operational by August 31, 2026.

View Audit 402238

Finding 1215560 (2025-003)

Material Weakness 2025

General John J Pershing Memorial Hospital Association

MO

Reporting Internal Control / Segregation of Duties Significant Deficiency § 200.303

Personnel Responsible for Corrective Action: Karla Clubine, Chief Executive Officer, David Cichocki, Chief Financial Officer Anticipated Completion Date: June 30, 2026 Views of Responsible Officials and Planned Corrective Action: Management accepts the recommendation. It will implement a review and ...

Personnel Responsible for Corrective Action: Karla Clubine, Chief Executive Officer, David Cichocki, Chief Financial Officer Anticipated Completion Date: June 30, 2026 Views of Responsible Officials and Planned Corrective Action: Management accepts the recommendation. It will implement a review and reconciliation process of the required reports to the underlying grant and accounting records.

View Audit 402223

Finding 1215557 (2025-002)

Material Weakness 2025

Nexus Recovery Center Inc.

TX

Reporting Significant Deficiency Internal Control / Segregation of Duties

Finding 2025-002: Reporting – Significant Deficiency in Internal Controls Over Compliance Programs: Block Grants for Prevention and Treatment of Substance Abuse (ALN 93.959) and SMART Innovation Program Management Response: Management concurs with the finding. Although grant reporting submissions we...

Finding 2025-002: Reporting – Significant Deficiency in Internal Controls Over Compliance Programs: Block Grants for Prevention and Treatment of Substance Abuse (ALN 93.959) and SMART Innovation Program Management Response: Management concurs with the finding. Although grant reporting submissions were not subject to a formal documented secondary review and approval process prior to submission, compensating controls existed. The Chief Executive Officer and Controller were copied on submissions and reviewed amounts charged to grants as part of monthly financial reporting and close procedures. No instances of noncompliance or questioned costs were identified. To strengthen controls over compliance reporting, management has implemented a formal review and approval process requiring the Chief Executive Officer to review all grant invoices and reporting submissions prior to submission to the grantor. Documentation of review and approval will be maintained to evidence compliance with established procedures. Corrective Action Planned/Implemented: • Formalized secondary review and approval procedures for all grant reporting submissions prior to submission. • Chief Executive Officer review and approval now required before grant invoices and reports are submitted. • Documentation of review and approval retained to support compliance with internal control procedures. Responsible Party: Chief Executive Officer / Controller / Accounting Department Implementation Date: Implemented as of April 2026

View Audit 402221

Finding 1215556 (2025-001)

Material Weakness 2025

Nexus Recovery Center Inc.

TX

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

Finding 2025-001: Allowable Cost – Significant Deficiency in Internal Controls Over Compliance Program: Block Grants for Prevention and Treatment of Substance Abuse (ALN 93.959) Management Response: Management concurs with the finding. The exceptions identified resulted from a lapse in execution of ...

Finding 2025-001: Allowable Cost – Significant Deficiency in Internal Controls Over Compliance Program: Block Grants for Prevention and Treatment of Substance Abuse (ALN 93.959) Management Response: Management concurs with the finding. The exceptions identified resulted from a lapse in execution of established approval procedures, as 2 of the 25 sampled credit card transactions charged to the grant did not include documented supervisory approval prior to payment. However, compensating controls existed, including Finance Department review of all expenditures prior to payment of the Brex account and additional review of expenses charged to the grant during preparation of monthly grant invoices and reporting. No unallowable costs or, questioned costs, were identified. To remediate the finding, all supervisors have received additional training and reminders regarding requirements for timely review and approval of expenditures prior to payment processing. In addition, the accounting team has implemented procedures prohibiting payment processing until all required approvals have been completed and documented. Management believes these enhanced controls strengthen adherence to existing policies and reduce the likelihood of recurrence. Management notes that the supervisor associated with the exceptions is no longer employed by the Organization; however, corrective actions focus on strengthening processes and controls rather than reliance on personnel changes. Corrective Action Planned/Implemented: • Refresher training provided to supervisors regarding expenditure review and approval requirements. • Accounting procedures updated to prevent payment processing prior to completion and documentation of all required approvals. • Existing accounting department monitoring procedures will continue, including review of expenditures before payment and grant expenditure review during monthly reporting. Responsible Party: Controller / Accounting Department Implementation Date: Implemented as of April 2026

View Audit 402221

Finding 1215545 (2025-001)

Material Weakness 2025

La Center School District

WA

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

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE La Center School District No. 101 September 1, 2024 through August 31, 2025 This schedule presents the corrective action the District is planning to take for findings included in this report in accordance with Title 2 U.S. Code of F...

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE La Center School District No. 101 September 1, 2024 through August 31, 2025 This schedule presents the corrective action the District is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2025-001 Finding caption: The District did not have adequate internal controls and did not comply with time and effort requirements. Name, address, and telephone of District contact person: Gary McGarvie, Business Manager PO Box 1840 La Center, WA 98629 (360) 263-2131 Corrective action the auditee plans to take in response to the finding: (If the auditee does not concur with the finding, the auditee must list the reasons for disagreement). As a new Business Manager completing year-end processes for the first time, I mistakenly overlooked attaching the semi-annual Time & Effort certification forms to the timesheets for our classified staff. While the District did maintain completed timesheets for all staff throughout the year, the formal Time & Effort certification documentation was not completed as required for federal grant compliance. To correct this and prevent it from happening again, the District has since implemented a more structured process to ensure Time & Effort documents are properly completed. This includes attaching semi-annual certification forms directly to timesheets for classified staff and sending certification forms to certificated staff twice a year. This process will ensure that the dollars being spent from federal grants are being used accurately and in accordance with federal requirements. Anticipated date to complete the corrective action: This process has already been implemented and we should not have this issue happen moving forward.

View Audit 402209

Finding 1215536 (2025-001)

Material Weakness 2025

Action for Eastern Montana

MT

Reporting

Section III: Federal Award Findings and Questioned Costs 2025-001 Filing of the SF-425 - Noncompliance Management Response: We have implemented a centralized calendar that tracks all reports due under our contracts, including submission deadlines. This tool is actively used to monitor compliance and...

Section III: Federal Award Findings and Questioned Costs 2025-001 Filing of the SF-425 - Noncompliance Management Response: We have implemented a centralized calendar that tracks all reports due under our contracts, including submission deadlines. This tool is actively used to monitor compliance and ensure timely completion of all required reports. Additionally, we are enhancing our internal processes by cross-training staff to review and maintain the reporting calendar. This will provide redundancy, improve oversight, and reduce the risk of missed or delayed submissions. These measures are intended to ensure consistent compliance with contract requirements and address the concerns identified in the audit. Contact Person Responsible for Corrective Action: Lea Ringen, Chief Financial Officer, Anticipated Completed Date of Corrective Action: May 1, 2026.

View Audit 402192

Finding 1215533 (2025-002)

Material Weakness 2025

Tuerk House, Inc.

MD

Allowable Costs / Cost Principles Reporting

Tuerk House, Inc. recognizes the importance of maintaining compliance with federal grant requirements related to allowable costs and documentation standards. The Organization acknowledges the continued deficiencies identified in the areas of time and effort reporting and supporting documentation for...

Tuerk House, Inc. recognizes the importance of maintaining compliance with federal grant requirements related to allowable costs and documentation standards. The Organization acknowledges the continued deficiencies identified in the areas of time and effort reporting and supporting documentation for expenditures charged to grant programs and reaffirms its commitment to achieving full compliance. To address this repeat finding, Tuerk House has implemented or is continuing to implement the following corrective actions: • Implemented a formal time and effort certification process requiring employees to certify actual time worked on federal grant activities on a regular basis, rather than relying on budgeted allocations. • Developed a standardized cost allocation methodology that aligns with actual grant activity and is supported by verifiable documentation. • Required that all expenditures charged to federal awards be supported by complete and accurate source documentation, including vendor invoices, timesheets, and approvals. • Established a document retention policy consistent with 2 CFR § 200.334 to ensure all supporting records are retained for the required period and readily accessible for audit or review. Training sessions for program and finance staff have been conducted, and ongoing training will continue to ensure consistent understanding and application of these updated policies and procedures. Organization Contact Person Responsible for Corrective Action – Kisun Peters, Director of Finance Anticipated Completion Date – June 30, 2026

View Audit 402190

Corrective Action Plans

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