Corrective Action Plans

Finding 1161718 (2024-005)

Material Weakness 2024

IL

Cash Management Reporting Significant Deficiency

Supporting Documentation of Expenditures Recommendation: Policies and procedures over monthly vouchers should include preparation and review of the voucher to ensure proper supporting documentation is maintained and available for each expenditure. There is no disagreement with the audit finding. Act...

Supporting Documentation of Expenditures Recommendation: Policies and procedures over monthly vouchers should include preparation and review of the voucher to ensure proper supporting documentation is maintained and available for each expenditure. There is no disagreement with the audit finding. Action planned/taken in response to finding: Outside accounting firm will be ensure proper supporting documentation is maintained and available for each expenditure. Name(s) of the contact person(s) responsible for corrective action: Mary Ann Mahon Huels, President and CEO Planned completion date for corrective action plan: Immediately

View Audit 371657

Finding 1161714 (2024-004)

Material Weakness 2024

Union League Boys and Girls Clubs

IL

Reporting Cash Management Significant Deficiency

Proper Cut-Off of Expenditures Recommendation: Policies and procedures over monthly vouchers should include preparation and review of the voucher to ensure completion in accordance with the accrual basis to ensure expenditures are being recorded and reported in the proper period. There is no disagre...

Proper Cut-Off of Expenditures Recommendation: Policies and procedures over monthly vouchers should include preparation and review of the voucher to ensure completion in accordance with the accrual basis to ensure expenditures are being recorded and reported in the proper period. There is no disagreement with the audit finding. Action planned/taken in response to findings: Outside Accounting Firm will oversee the monthly voucher process to ensure completion in accordance with the accrual basis to ensure expenditures are recorded and reported in the proper period. Name(s) of the contact person(s) responsible for corrective action: Mary Ann Mahon Huels, President and CEO Planned completion date for corrective action plan: Immediately

View Audit 371657

Finding 1161710 (2024-003)

Material Weakness 2024

Middle East Broadcasting Networks, Inc.

VA

Procurement, Suspension & Debarment Subrecipient Monitoring Material Weakness

Views of Responsible Officials: Management understands and agrees. Unfortunately, this issue was identified late into FY24 when the FY23 audit was being completed so the issue persisted into FY24. From the corrective action plans taken from the FY23 audit and desk review, this issue has been address...

Views of Responsible Officials: Management understands and agrees. Unfortunately, this issue was identified late into FY24 when the FY23 audit was being completed so the issue persisted into FY24. From the corrective action plans taken from the FY23 audit and desk review, this issue has been addressed and resolved in early FY25. MBN currently has an SOP regarding fixed assets that is already implemented. To address these concerns, MBN updated the SOP to include a clear process for equipment disposals, specifically for assets with a fair market value over $10,000, in accordance with Uniform Guidance. This update will ensure that all disposals are properly documented, and appropriate notifications are made to USAGM. We would like to confirm that the equipment disposal forms have already been updated to ensure that all necessary responses are reviewed and accurately completed as part of the notification process for disposals. Furthermore, we have strengthened our tracking, reporting and disposal processes to ensure the final disposition of equipment, including salvage value, is appropriately recorded.

View Audit 371654

Finding 1161709 (2024-002)

Material Weakness 2024

Middle East Broadcasting Networks, Inc.

VA

Subrecipient Monitoring Material Weakness Reporting

Views of Responsible Officials: Management agrees and if funding had not stopped, audit fieldwork was originally slated to begin April 1st which would have allowed for timely completion. We fully intend to complete our FY25 audit well before the nine-month deadline.

View Audit 371654

Finding 1161708 (2024-001)

Material Weakness 2024

Middle East Broadcasting Networks, Inc.

VA

Subrecipient Monitoring Material Weakness Reporting § 200.303

Views of Responsible Officials: Management agrees and was fully aware of the situation it found itself in when funding was cut. The Organization was not able to keep enough staff employed during this time to review and correct these errors before the audit fieldwork began. Now that these historical ...

Views of Responsible Officials: Management agrees and was fully aware of the situation it found itself in when funding was cut. The Organization was not able to keep enough staff employed during this time to review and correct these errors before the audit fieldwork began. Now that these historical balances have been corrected, the team undergoes a rigorous month-end close process where these issues will be caught and addressed immediately going forward.

View Audit 371654

Finding 1161698 (2024-001)

Material Weakness 2024

Rockefeller Philanthropy Advisors, Inc.

NY

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

Audit Finding 2024-001 Reference: Over-allocation of payroll expenditures to grant-funded programs (2 instances out of 40 sampled) ________________________________________ 1. Issue Summary During the audit of allowable payroll costs, two instances of over-allocation to grant-funded programs were ide...

Audit Finding 2024-001 Reference: Over-allocation of payroll expenditures to grant-funded programs (2 instances out of 40 sampled) ________________________________________ 1. Issue Summary During the audit of allowable payroll costs, two instances of over-allocation to grant-funded programs were identified. These occurred early in the fiscal year due to imprecise monthly allocation methods and insufficient review prior to posting. ________________________________________ 2. Root Cause Analysis • Use of a monthly allocation methodology lacking precision. • Insufficient review and approval of payroll allocations before posting. • Lack of real-time substantiation of salary distributions with actual time worked. ________________________________________ 3. Corrective Actions • Already implemented in the second half of the fiscal year, continue using the granular allocation method based on actual pay periods; including ongoing monitoring. • Implement a mandatory review of payroll allocations by project staff with support from SP&F accountants • Require timesheets or effort certifications and manager’s approval for personnel charged to federal awards. • Update internal payroll allocation policies to reflect new methodology and controls. • Conduct training sessions for finance and staff assigned to grants on revised payroll allocation procedures and compliance requirements. ________________________________________ 4. Responsible Parties Sponsored Projects Finance Team: Transaction reviews Finance Director: Oversight and implementation of corrective actions ________________________________________ 5. Timeline Action Item Target Completion Date Allocation Actual Pay Already implemented Review of Allocations Already implemented Timesheet/Policy Development Already implemented Staff Training Completed initial training, additional will be ongoing

View Audit 371643

Finding 1161674 (2024-002)

Material Weakness 2024

Catholic Charities Corporation

OH

Reporting § 200.512

Finding 2024-002 Submission of Reporting Package Criteria: 2 CFR 200.512(a)(1) states that the audit, the data collection form, and the reporting package must be submitted within 30 calendar days after the auditee receives the auditor's report or nine months after the end of the audit period (whiche...

Finding 2024-002 Submission of Reporting Package Criteria: 2 CFR 200.512(a)(1) states that the audit, the data collection form, and the reporting package must be submitted within 30 calendar days after the auditee receives the auditor's report or nine months after the end of the audit period (whichever is earlier). Condition: The Organizations did not timely submit the Single Audit Reporting Packages for the year ended December 31, 2023. Cause: Due to delays in the audit process, the December 31, 2023 audit was not completed until after the submission deadline. Effect: The Organizations could miss out on grant opportunities. Recommendation: We recommend ensuring the accounting records are prepared and reconciled in a timely manner to ensure the audit and submission of the data collection form be completed in a timely manner. Corrective actions taken or planned: Management will develop and execute a comprehensive corrective action plan, including the implementation of controls and procedures around the period-end closing process. This will ensure that all necessary adjustments and reconciliations are completed and reviewed prior to the year-end audit fieldwork. Additionally, management will provide traning for finance and accounting staff to emphasize the importance of accuracy and timely financial reporting. Name of contract person responsible for corrective action plan: Brian Gillette, Chief Financial Officer Anticipated completion date: December 31, 2025

View Audit 371592

Finding 1161632 (2024-002)

Material Weakness 2024

COMMUNITY SERVICES PROGRAMS, INC. AND AFFILIATES

NY

Reporting

Name of auditee: Community Services Programs, Inc. and Affiliates TIN: 51-0139050 Name of Audit Firm: EFPR Group, CPAs, PLLC Period covered by audit: July 31, 2024 CAP prepared by: Margaret O’Leary Current Finding on the Schedule of Findings and Questioned Costs and Recommendations (2) Finding 2024-...

Name of auditee: Community Services Programs, Inc. and Affiliates TIN: 51-0139050 Name of Audit Firm: EFPR Group, CPAs, PLLC Period covered by audit: July 31, 2024 CAP prepared by: Margaret O’Leary Current Finding on the Schedule of Findings and Questioned Costs and Recommendations (2) Finding 2024-002 (a) Comments on the finding and recommendations: Management agrees with the finding. Management also agrees with the recommendation. (b) Action taken: Management has taken steps to ensure timely filing for the year ended July 31, 2025.

View Audit 371504

Finding 1161631 (2024-004)

Material Weakness 2024

City of Versailles

KY

Reporting § 200.512

We agree with the auditors' recommendations, and the following action will be taken to improve the timeliness of the financial reporting process. Management will consult with the audit firm and outside CPA firm to develop an agreed upon schedule for the FY 2025 financial reporting process and relate...

We agree with the auditors' recommendations, and the following action will be taken to improve the timeliness of the financial reporting process. Management will consult with the audit firm and outside CPA firm to develop an agreed upon schedule for the FY 2025 financial reporting process and related audit to meet the Financial Audit Clearinghouse reporting requirement. We will also identify additional training for departmental staff to improve skills and address identified deficiencies. Finally, Management will review capacity constraints and development solutions to improve capacity.

View Audit 371503

Finding 1161562 (2024-001)

Material Weakness 2024

The Thresholds and Affiliated Organizations

IL

Reporting

Condition: The Agency’s controls in place for financial reporting submissions did not identify that the SF-425 Federal Financial Report (“FFR”) submitted for the annual reporting period ending August 31, 2023, indicated that the report was prepared on the accrual basis of accounting when the report ...

Condition: The Agency’s controls in place for financial reporting submissions did not identify that the SF-425 Federal Financial Report (“FFR”) submitted for the annual reporting period ending August 31, 2023, indicated that the report was prepared on the accrual basis of accounting when the report was actually prepared on the cash basis of accounting. The report filed did not reflect the accrued expenditures for the program. Planned Corrective Action: Thresholds current policy is as follows. For purposes of financial reporting on federal awards, financial reports will be prepared by the grant accountant (or other appropriate party) and reviewed by the Senior Director of Grants Accounting (or their designee). Unfortunately, this policy did not identify this mistake, because these payments came from a construction escrow account and did not go through the normal accounts payable process. We will add additional requirements for any accounting entry resulting from construction escrow payments. Namely, we will scrutinize and verify the accrual period(s) for such escrow expenditures before posting the accounting entry. Contact person responsible for corrective action: Al Shoreibah, Chief Financial Officer Anticipated Completion Date: 03/01/2025

View Audit 371444

Finding 1161557 (2024-001)

Material Weakness 2024

NEUROVASCULAR DIAGNOSTICS, INC.

NY

Reporting

Name of auditee: Neurovascular Diagnostics, Inc. TIN: 81-2945332 Name of audit firm: EFPR Group, CPAs, PLLC Period covered by audit: January 1, 2024 - December 31, 2024 CAP prepared by: Vince Tutino vincentt@buffalo.edu Finding 2024-001 Neurovascular Diagnostics (the Company) attempted to receive ap...

Name of auditee: Neurovascular Diagnostics, Inc. TIN: 81-2945332 Name of audit firm: EFPR Group, CPAs, PLLC Period covered by audit: January 1, 2024 - December 31, 2024 CAP prepared by: Vince Tutino vincentt@buffalo.edu Finding 2024-001 Neurovascular Diagnostics (the Company) attempted to receive approval from the federal awarding agency to elect the program-specific audit option to satisfy reporting requirements. After several attempts without response, the Company opted to have a full financial statement audit conducted. The Company engaged a certified public accounting firm to conduct the audit for the year ended December 31, 2024 and completed its audit and reporting requirements as of October 2025. Further, the Company intends to engage the same firm in future years to ensure timely submission of the data collection form to the Federal Audit Clearinghouse.

View Audit 371436

Finding 1161536 (2024-004)

Material Weakness 2024

Canandaigua Housing Development Fund CO Inc. (proj No. 014-E074)

NY

Reporting HUD Housing Programs

The delay in closing the prior fiscal year was due to the transition in management company and the difficulty in obtaining prior year information, account statements and other key documentation in a timely manner. The current fiscal year has been completed through June 2025. The year-end closing pla...

The delay in closing the prior fiscal year was due to the transition in management company and the difficulty in obtaining prior year information, account statements and other key documentation in a timely manner. The current fiscal year has been completed through June 2025. The year-end closing plan in place with our current audit team and anticipate that all required submissions will be timely.

View Audit 371430

Finding 1161487 (2024-001)

Material Weakness 2024

Elementary School District 159

IL

Reporting

The District will implement a process to track the submission time of the data collection form and audit package.

View Audit 371385

Finding 1161477 (2024-003)

Material Weakness 2024

Garrett County, Maryland Community Action Committee, Inc.

MD

Reporting

Head Start Semi Annual and Annual Federal Financial Reports will be filed by the VP of Administration.

View Audit 371381

Finding 1161462 (2024-002)

Material Weakness 2024

The Methodist Home of Kentucky, Inc.

KY

Internal Control / Segregation of Duties Reporting

The Finance Department has created additional month-end and year end review of the adjustments. In addition, The Director of Finance will meet with the Audit Team prior to year-end work for consultation regarding year-end adjustments.

View Audit 371378

Finding 1161451 (2024-002)

Material Weakness 2024

Nueces County, Texas

TX

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Management acknowledges that there have been challenges with the preparation of the September 30, 2024 financial statements due mainly to the implementation of a new accounting system in January 2024. Three months’ data was recorded in the legacy software system with nine months in the new system. A...

Management acknowledges that there have been challenges with the preparation of the September 30, 2024 financial statements due mainly to the implementation of a new accounting system in January 2024. Three months’ data was recorded in the legacy software system with nine months in the new system. Additionally, implementation of data from the old system to the new system did not mirror each other due to prior management decisions that were made, and so a software consultant was hired to convert all the newly converted data into the old, legacy format. This created duplicate journal entries that took time to identify and correct. These issues have since been resolved. Closing of future fiscal years should not encounter these same challenges. There were additional challenges with the recording of grants. In fiscal year 2024, management of grants had been mainly decentralized. There was a grants department who was responsible for some grants; a grants position in the County Auditor’s office who was responsible for other grants; and the management of even other grants being outsourced to an outside consultant. The Commissioners Court recognized the issues that this caused, and for fiscal year 2026, the grants department has been disbanded. The function of that department will be centralized with the outside consultant – with management oversight by a county employee. The financial recording will be centralized in the County Auditor’s office by an accountant who will be adequately trained in the accounting for grants. The position is currently being advertised, with a hire date of no later than November 30, 2025 being anticipated.

View Audit 371344

Finding 1161449 (2024-001)

Material Weakness 2024

Arukah Institute of Healing, Inc.

IL

Reporting Significant Deficiency Internal Control / Segregation of Duties § 200.512

The policies and procedures around the Single audit will be reviewed, assigning responsibility, and implementing tracking systems. The CEO, COO, CFO, and Grants Manager will be responsible for overseeing the data collection and submission process internally, keeping track of the audit deadlines to e...

The policies and procedures around the Single audit will be reviewed, assigning responsibility, and implementing tracking systems. The CEO, COO, CFO, and Grants Manager will be responsible for overseeing the data collection and submission process internally, keeping track of the audit deadlines to ensure that all processes are moving forward in a timely fashion. All relevant parties will be trained on the reporting requirements and due dates.

View Audit 371331

Finding 1161437 (2024-006)

Material Weakness 2024

City of Auburn, Maine

ME

Reporting Internal Control / Segregation of Duties Subrecipient Monitoring

Management Response/Corrective Action Plan: Additional reports will be run to verify totals before filings of quarterly reports, paying particular attention to end of year and the needed reversal of the prior year payroll accrual. Errors found in reports will be corrected in subsequent records as al...

Management Response/Corrective Action Plan: Additional reports will be run to verify totals before filings of quarterly reports, paying particular attention to end of year and the needed reversal of the prior year payroll accrual. Errors found in reports will be corrected in subsequent records as allowable under Department of Treasury grant reporting guidelines.

View Audit 371295

Finding 1161431 (2024-008)

Material Weakness 2024

City of Auburn, Maine

ME

Reporting Internal Control / Segregation of Duties

Management Response/Corrective Action Plan: Internal deadlines have been revised to ensure timely submission of all required reports. For the PR-29 specifically, there are instances where the review date replaced the actual submission time-stamp date in the system making it appear it was submitted a...

Management Response/Corrective Action Plan: Internal deadlines have been revised to ensure timely submission of all required reports. For the PR-29 specifically, there are instances where the review date replaced the actual submission time-stamp date in the system making it appear it was submitted after the deadline when it was merely reviewed again after submission. This is a result of the HUD system the city has no capability of changing. Staff have been trained on the correct process, and this training will also be provided to any new staff involved in preparing or submitting these reports.

View Audit 371295

Finding 1161418 (2024-001)

Material Weakness 2024

Washington City Orphan Asylum Dba Hillcrest Children's Center

DC

Reporting Internal Control / Segregation of Duties § 200.501

Views of Responsible Officials and Planned Corrective Actions We acknowledge the finding regarding the delayed submission of the FY 2024 Single Audit Report to the Federal Audit Clearinghouse, and we appreciate the opportunity to provide our explanation and corrective action plan. To address this fi...

Views of Responsible Officials and Planned Corrective Actions We acknowledge the finding regarding the delayed submission of the FY 2024 Single Audit Report to the Federal Audit Clearinghouse, and we appreciate the opportunity to provide our explanation and corrective action plan. To address this finding and prevent future recurrence, the following corrective actions have been initiated: Hiring of CFO Replacement: A qualified replacement for the Chief Financial Officer has been identified and is currently in the final stages of the hiring and onboarding process. This individual will assume responsibility for financial oversight, including audit preparation and timely submission of compliance reports. Interim Oversight and Delegation: In the interim period, the duties previously overseen by the CFO have been temporarily assigned to the Controller and Chief Executive Officer, with close coordination with the Finance Committee of the Board. This ensures proper oversight and continuity of compliance functions during leadership transition. Revised Internal Calendar and Milestone Tracking: An internal compliance calendar is being updated to reflect all critical reporting deadlines, including those under Uniform Guidance. Key deliverables (e.g., SEFA preparation, audit milestones, report reviews) will be tracked and monitored monthly by management to ensure deadlines are met. Enhanced Communication with Auditors: Management will work closely with external auditors to formalize an earlier schedule for yearend fieldwork, allowing for earlier identification of issues and timely resolution to support ontime audit completion. We have determined that the year-end single audit must start no later than January 31of the end of the year. Internal Controls Improvement: Hillcrest is enhancing its internal control framework (aligned with COSO standards) by documenting audit preparation procedures and establishing written protocols for contingency planning in the event of future staff turnover. Hillcrest Children and Family Center is committed to strong financial management, regulatory compliance, and transparency in all its operations. We view this incident as an isolated disruption resulting from an unanticipated leadership transition and are taking proactive steps to strengthen our internal processes. We are confident that the corrective actions outlined above will ensure timely audit completion and reporting in future years. Name of the contact person responsible for corrective action: Carroll Parks, Chief Executive Officer Planned completion date for the corrective action plan: The corrective action plan is currently active and will be moving forward.

View Audit 371274

Finding 1161415 (2024-011)

Material Weakness 2024

Wittenberg University

OH

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting § 200.512

This finding was related to staff turnover within the various offices involved in the annual A-133 compliance audit as noted in previous findings. The hiring of qualified staff properly trained should avoid this finding going forward. Implementation of the corrective action plan is expected to be co...

This finding was related to staff turnover within the various offices involved in the annual A-133 compliance audit as noted in previous findings. The hiring of qualified staff properly trained should avoid this finding going forward. Implementation of the corrective action plan is expected to be complete by June 30, 2026. Responsible Party Robert Rood Interim Vice President Finance and Administration

View Audit 371273

Finding 1161386 (2024-004)

Material Weakness 2024

Contemporary Oriental Medicine Foundation

FL

Special Tests & Provisions Student Financial Aid Material Weakness

Finding 2024-004: Failure to Notify Secretary of HCM1 Reporting Events while Participating under the Zone Alternative Comments on Finding and Recommendations: The College agrees with this finding as determined in the examination and states that the College had deficiencies related to the Institution...

Finding 2024-004: Failure to Notify Secretary of HCM1 Reporting Events while Participating under the Zone Alternative Comments on Finding and Recommendations: The College agrees with this finding as determined in the examination and states that the College had deficiencies related to the Institution's failure to properly notify the Secretary of a violation of a loan agreement and a failure to make a payment in accordance with its debt obligations,that resulted in a creditor filing suit to recover funds under those obligations. Actions Taken or Planned: The College was unaware of the requirement to notify the Secretary of the concerns with the loans and is taking action to notify the Secretary at the time of generating this document. The College has hired an Accreditation and Compliance Officer to ensure that lack of understanding of requirements does not happen in the future. The College would also like to note the following: the individual referenced in the suit had given verbal, though not written permission to not pay the loan past the due date while she served as the Vice Chair of the Governing Board. Upon removal from the Board due to failure to perform duties the individual filed suit, the suit is being partially argued by the College’s attorney noting the complainant had failed in their duties while on the board and may have engaged with another individual to defraud the College. Additionally while the College is submitting notification currently, there is a Government shutdown that may interfere with the notification process.

View Audit 371262

Finding 1161341 (2024-001)

Material Weakness 2024

Piedmont Housing Alliance

VA

Reporting

Performance reports will be filed in a timely manner to avoid missing the deadline.

View Audit 371236

Finding 1161288 (2024-005)

Material Weakness 2024

Association of Village Council Presidents Regional Housing Authority

AK

Reporting Significant Deficiency Internal Control / Segregation of Duties § 200.512

Finding 2024-005 Significant Deficiency in Internal Control over Compliance and Noncompliance – Reporting Deadline for Federal Single Audit Questioned Programs ALN 15.022 Tribal Self Governance Agencies: Department of Interior ALN 84.250 American Indian Vocational Rehabilitation Services Agencies: D...

Finding 2024-005 Significant Deficiency in Internal Control over Compliance and Noncompliance – Reporting Deadline for Federal Single Audit Questioned Programs ALN 15.022 Tribal Self Governance Agencies: Department of Interior ALN 84.250 American Indian Vocational Rehabilitation Services Agencies: Department of Education Award Numbers GT-OSGT812- Year 2013 GT-OSGT812- Year 2017 GT-OSGT812- Year 2018 GT-OSGT812- Year 2019 GT-OSGT812- Year 2020 GT-OSGT812- Year 2021 GT-OSGT812- Year 2022 GT-OSGT812- Year 2023 GT-OSGT812- Year 2024 GT-OSGT812- Year 2025 H250N210051- Year 2023 H250N210051- Year 2024 Condition The Association did not comply with the required submission date of the data collection form and reporting package to the FAC for the fiscal year ended December 31, 2024. Status In Progress. Management’s Corrective Action Plan Management acknowledges that the data collection form and reporting package was filed late for Fiscal Year 2024 due to employee turnover. As these positions have been filled subsequent to year end, we do not anticipate any such issues for Fiscal Year 2025.

View Audit 371211

Finding 1161279 (2024-002)

Material Weakness 2024

New Hampshire Children's Trust

NH

Subrecipient Monitoring Reporting Significant Deficiency § 200.329

Director of Operations & Impact will draft an 18-month reporting deliverables schedule to be reviewed quarterly. The schedule of reporting deliverables will be added to a dedicated calendar in SharePoint, shared with the President and programs team staff, and a series of reminders and notifications ...

Director of Operations & Impact will draft an 18-month reporting deliverables schedule to be reviewed quarterly. The schedule of reporting deliverables will be added to a dedicated calendar in SharePoint, shared with the President and programs team staff, and a series of reminders and notifications will be integrated into the system. The system itself will be reviewed every six months going forward to address any technological issues and make recommendations for improved functionality. Planned Implementation Date of Corrective Action: 9/22/25 Person Responsible for Corrective Action: Director of Operations & Impact

View Audit 371198

Corrective Action Plans

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