Corrective Action Plans

Finding 1181692 (2025-004)

Material Weakness 2025

NE

Allowable Costs / Cost Principles Cash Management Reporting

Management will review current grant tracking and reimbursement procedures and pursue improvements, as appropriate, to strengthen coordination across grant programs. Opportunities to enhance review processes prior to submission will also be considered to help minimize duplicate charges and support c...

Management will review current grant tracking and reimbursement procedures and pursue improvements, as appropriate, to strengthen coordination across grant programs. Opportunities to enhance review processes prior to submission will also be considered to help minimize duplicate charges and support compliance with federal requirements.

View Audit 392940

Finding 1181681 (2025-002)

Material Weakness 2025

Housing Authority of Covington

KY

HUD Housing Programs Subrecipient Monitoring Cash Management § 200.302

Authority Response and Planned Corrective Action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Public and Indian Housing Program including implementation of formal policies, reconciliation procedures, and enhanced oversight of interfund activi...

Authority Response and Planned Corrective Action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Public and Indian Housing Program including implementation of formal policies, reconciliation procedures, and enhanced oversight of interfund activity to ensure that established internal control policies are being followed on a timely basis. Steve Arlinghaus, Executive Director, is responsible for implementing this corrective action by June 30, 2026.

View Audit 392935

Finding 1181680 (2025-002)

Material Weakness 2025

Marshall Public Schools

WI

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting

Finding: #2025-002- Time and Effort Reporting Assistance Listing/Program Title: #84.027 A/IDEA Flow Through and #84.173A/Preschool Entitlement (Special Education Cluster) Federal Agency/Pass-Through Entity: U.S Department of Education/Wisconsin Department of lnstruction Award Numbers/Year: 2025-1333...

Finding: #2025-002- Time and Effort Reporting Assistance Listing/Program Title: #84.027 A/IDEA Flow Through and #84.173A/Preschool Entitlement (Special Education Cluster) Federal Agency/Pass-Through Entity: U.S Department of Education/Wisconsin Department of lnstruction Award Numbers/Year: 2025-133332-DPI-FLOW-341 and 2025-133332-DPI-PRESCH-347/2024-2025 Criteria: In accordance with the federal Uniform Guidance, charges to federal awards for salaries and benefits must be based on records that accurately reflect the work performed. Such records must be supported by time and effort documentation. Condition: During the auditors' testing of payroll charges, it was noted that the District did not maintain adequate time and effmi documentation to support the allocation of salaries and benefits to the Special Education Cluster. Specifically, one employee's time was coded to the Special Education Cluster at a fixed 10% allocation. Cause: The District did not have adequate internal controls to ensure required time and effort documentation was consistently obtained and maintained for all employees whose salaries and benefits were charged to the Special Education Cluster. Staff turnover and lack of training contributed to inconsistent application of federal requirements. Effect: Because required time and effort documentation was not properly maintained, salaries and benefits charged to the Special Education Cluster may not accurately reflect actual time spent working on the program. As a result, these costs are unallowable under the Uniform Guidance. Questioned Costs: The absence of proper documentation results in questioned costs of $7,037, representing the salary and benefit amounts charged to the program for the one employee without adequate support. Recommendation: The auditor recommends that the District strengthen internal controls over time and effort reporting to ensure all employees funded in whole or in part by federal programs complete required documentation in accordance with Uniform Guidance. Additionally, a monitoring process should be implemented to ensure time distribution report is are completed accurately and retained in accordance with record-keeping requirements. Response: Management concurs with the finding and will implement internal control improvements to ensure full compliance with federal time and effort documentation requirements.

View Audit 392933

Finding 1181650 (2025-001)

Material Weakness 2025

Sonoma-Marin Area Rail Transit District

CA

Reporting Cash Management § 200.302 § 200.328

Corrective Action Plan - Federal Award Finding Finding 2025-001 Federal Agency Name: US DOT, Federal Railroad Administration Assistance Listing: 20.325 Program Name: Consolidated Rail Infrastructure and Safety Improvements (CRISI) Initial Year Finding Occurred: Fiscal Year 2025 Reporting Finding Sum...

Corrective Action Plan - Federal Award Finding Finding 2025-001 Federal Agency Name: US DOT, Federal Railroad Administration Assistance Listing: 20.325 Program Name: Consolidated Rail Infrastructure and Safety Improvements (CRISI) Initial Year Finding Occurred: Fiscal Year 2025 Reporting Finding Summary: The auditor identified an instance in which one quarterly SF-425 (report) did not reflect cumulative federal cash receipts and disbursements as required by the reporting instructions. Instead, the report reflected only the current quarter's ended federal cash activity. No additional reporting errors were identified by the audit, and the other reporting lines were prepared correctly. Auditor’s Recommendation: The auditor recommends that management continue to strengthen review procedures over SF-425 preparation, including documented review of cumulative cash reporting and verification of all report attributes, particularly during periods when backup personnel are responsible for report preparation. Management’s Response: Management concurs that an error occurred on one SF-425 report for a single reporting period. The error occurred during a sta􀆯ing transition and involved a field that FRA does not require, and that had not historically been populated. Additionally, FRA and FTA use the same SF-425 form but apply di􀆯erent reporting conventions; FTA requires the field to be reported quarterly rather than cumulatively, which contributed to the confusion. As noted in the audit finding, this was a reporting error only. There were no questioned costs, no billing inaccuracies, and no impact on the underlying financial activity. Corrective Action: Management has implemented the following actions to prevent recurrence: • Updated internal procedures to clearly distinguish FRA and FTA reporting requirements. • Implemented a two-step review process in which one sta􀆯 member prepares all federal financial reports and a second sta􀆯 member performs an independent review prior to submission. • Expanded procedure on reporting when primary sta􀆯 are unavailable, including cross training and adding backup for both reporting and review. These actions strengthen internal controls, ensure consistency across federal reporting, and reduce the risk of future reporting discrepancies. Responsible Individual: Heather McKillop, Chief Financial O􀆯icer Anticipated Completion Date: March 2026

View Audit 392922

Finding 1181630 (2025-001)

Material Weakness 2025

Spero Family Services

IL

Allowable Costs / Cost Principles Reporting

Management will prepare the schedule of expenditures of federal awards as part of the year end closing process to determine our audit requirements under the Uniform Guidance and provide the schedule to the audit firm during the financial audit process.

View Audit 392910

Finding 1181627 (2025-001)

Material Weakness 2025

Brenau University

GA

Student Financial Aid Matching / Level of Effort / Earmarking Special Tests & Provisions § 200.303

Finding 2025-001: Special Tests and Provisions: Enrollment Reporting Context/Condition: Of the 40 students selected for enrollment reporting testing, one (1) student graduation was reported to NSLDS outside the maximum 60-day window. Recommendation: The auditor recommended that the College review an...

Finding 2025-001: Special Tests and Provisions: Enrollment Reporting Context/Condition: Of the 40 students selected for enrollment reporting testing, one (1) student graduation was reported to NSLDS outside the maximum 60-day window. Recommendation: The auditor recommended that the College review and update internal controls to ensure student enrollment status in the National Student Loan Data System (NSLDS) is updated in a timely manner to ensure compliance with Federal requirements. Persons Responsible for Corrective Action: Registrar Liz Force Planned Corrective Action: The Registrar will update NSLDS reporting processes and controls to include detection controls to ensure all student graduations, including those occurring outside the traditional reporting window, are accurately and timely reported to the NSLDS within the maximum 60-day window. Anticipated Completion Date: December 31, 2025

View Audit 392908

Finding 1181624 (2025-002)

Material Weakness 2025

Town of West Point, Virginia

VA

Reporting

The audit finding regarding the ARPA reporting has been reviewed & acknowledged. In the future, the report will be carefully inspected to make sure all figures are correct at the time of the filing. In addition, this reporting for ARPA will be wrapping up shortly since the program is nearing complet...

The audit finding regarding the ARPA reporting has been reviewed & acknowledged. In the future, the report will be carefully inspected to make sure all figures are correct at the time of the filing. In addition, this reporting for ARPA will be wrapping up shortly since the program is nearing completion.

View Audit 392895

Finding 1181617 (2025-006)

Material Weakness 2025

Second Judicial District Court

NM

Reporting Internal Control / Segregation of Duties § 200.502

Views of Responsible Officials and Planned Corrective Action In coordination with detailed discussions with the auditors, DPS has determined that its existing quarterly reconciliation process within SHARE remains an appropriate and effective control for the preparation of the Schedule of Expenditure...

Views of Responsible Officials and Planned Corrective Action In coordination with detailed discussions with the auditors, DPS has determined that its existing quarterly reconciliation process within SHARE remains an appropriate and effective control for the preparation of the Schedule of Expenditures of Federal Awards (SEFA). This process is designed to review grant-related transactions for invoicing accuracy, monitoring, and compliance and provides reasonable assurance over grant oversight and expense allowability. In addition, at fiscal year-end, DPS will perform a SEFA-specific review from a revenue perspective to confirm that federal revenue recorded in the general ledger and reimbursement requests are complete, accurate, and consistent with grant-related expenditures. This layered review process is intended to identify and resolve any instances in which expenses may be evaluated or adjusted for reimbursement purposes while remaining appropriately recorded within grant activity in the accounting records. Management concurs that the expenditure amounts reported on DPS’ final SEFA submitted to auditors related to AL 97.036 Disaster Grants – Public Assistance (Presidentially Declared Disasters) were inaccurate. While DPS had carefully and accurately tracked the allowable expenditures of $583,271 for two FEMA events (DR 4795 Roswell South Fork Salt Fire $543,587.72 & DR 4843 NM Roswell Flood $39,683.22) and discussed in detail with the auditors how allowable costs were determined, our submitted SEFA had a formula error which resulted in the two FEMA events not being accurately included in the total. Furthermore, management concurs that the preparation and analysis of a revenue-based SEFA, performed in addition to the expenditure-based SEFA, resulted in net adjustments of $25,998 to the previously submitted FY25 SEFA. Management concurs that DPS did not have a pre-existing formal procedure specific to the receipt and processing of federally donated surplus and usable personal property at the time of this transaction. However, management emphasizes that the donation of three federally provided robots—valued by the donor at $150,000 each for a total of $450,000—was highly unusual in nature and outside the scope of DPS’s routine grant and property transactions. As a result, DPS undertook extensive research and consultation to ensure compliance with all applicable federal requirements, as well as GASB and GAAP standards, prior to final accounting and reporting treatment. Management has created procedures to ensure the donated assets are correctly valued and included in DPS’s capital asset listing. DPS will record the donated capital assets in the government wide financial statements as capital assets and record as a revenue and expense transaction in the fund financial statements. Management further notes that DPS will follow GASB 33 and GASB 72 for non-exchange transactions when this type of transaction reoccurs. Corrective Action Plan Timeline: Process for federally donated useable personal property/assets has been implemented as of December 1, 2025. Updated SEFA process to be completed no later than October 9, 2026. Designation Of Employee Position Responsible For Meeting Deadline: CFO Deputy ASD Director ASD Director

View Audit 392879

Finding 1181616 (2025-005)

Material Weakness 2025

Second Judicial District Court

NM

Reporting

Views of Responsible Officials and Planned Corrective Actions Management concurs with the finding. The Department will fully implement the proposed entitywide reporting controls. The Grant Management Bureau will lead the implementation of the following measures to strengthen reporting compliance: • ...

Views of Responsible Officials and Planned Corrective Actions Management concurs with the finding. The Department will fully implement the proposed entitywide reporting controls. The Grant Management Bureau will lead the implementation of the following measures to strengthen reporting compliance: • Federal Grant Tracker/Checklist: An existing grant tracking spreadsheet will be utilized to monitor all federal grants and milestone dates, including SF-425 financial reports and progress-report due dates by award. The tracker will be maintained in a shared file accessible to grant managers and analysts. • Automated Reminders: Automated email alerts will be reviewed against the Federal Grant Tracker to ensure all awards are captured and deadlines are met. • Preparer Verification and Supervisory Review: Additional information fields will be incorporated into the Federal Grant Tracker to verify completeness and accuracy of each submission, along with documented supervisory review and approval. • Monthly Compliance Updates: A monthly summary will be presented to executive management, highlighting upcoming deadlines, submission status, and any exceptions. This information will be documented within the Federal Grant Tracker. • Evidence Retention: Supporting documentation, including SF-425 due dates and analyst/manager approval dates, will be recorded in the Federal Grant Tracker and retained for audit and verification purposes. The effectiveness of these measures will be assessed by achieving 100% on-time submissions for two consecutive quarters. We are committed to meeting this objective and ensuring consistent, timely, and accurate grant reporting across the organization. The Department expects to fully implement these measures by December 31, 2025, with implementation oversight assigned to the Chief Financial Officer and Grants Management Bureau Manager.

View Audit 392879

Finding 1181609 (2025-001)

Material Weakness 2025

Clark Atlanta University

GA

Student Financial Aid Reporting Matching / Level of Effort / Earmarking § 200.303

Develop a Strategic Plan of Action ensuring data accuracy and timely transmission of Enrollment Status Reports & Degree Verification Reports to the National Student Clearinghouse for further submission to NSLDS. The plan will establish a structured, repeatable process to:  Validate the accuracy of ...

Develop a Strategic Plan of Action ensuring data accuracy and timely transmission of Enrollment Status Reports & Degree Verification Reports to the National Student Clearinghouse for further submission to NSLDS. The plan will establish a structured, repeatable process to:  Validate the accuracy of student enrollment and degree data prior to NSCH submission.  Ensure timely transmission of Enrollment Status Reports (ESRs) and Degree Verification Reports (DVRs).  Strengthen internal controls, documentation, and audit readiness with system-generated audit reports and dual review.  Improve communication among Registrar, IT, Institutional Research, and Financial Aid. Susan W. Gibson, University Registrar James Stotts, Associate VP Financial Aid Tansha Gillins, Principal Analyst June 30, 2026 Due to BANNER SaaS system upgrade in progress, this action will be completed by June 30, 2026, to allow for report writing in the new reporting tool postimplementation Immediate action: To ensure timely reporting to National Student Clearinghouse and NSLDS, reports will be generated bi-weekly. ISE scheduler will be used to extract baseline data from BANNER for uploading the Enrollment Status Report to National Student Clearing biweekly with off-cycle adjustments as needed. Initial errors will be identified and corrected using a dual-review process before uploading the report to NSCH. Martha Henderson, Associate Registrar Tansha Gillins, Principal Analyst On-going activity Beginning March 30, 2026 The Degree Verification Report will be generated monthly to ensure that graduation status is reported within the timeframe required by NSLDS. Graduation lists will be forwarded to the Office of Financial Aid for dual review and validation to confirm the accuracy of the data and the timeliness of certification to NSLDS. Martha Henderson, Associate Registrar Palmira Wakhisi, Financial Aid On-going activity Beginning May 20, 2026

View Audit 392841

Finding 1181605 (2025-002)

Material Weakness 2025

Red Hook Central School District

NY

School Nutrition Programs Cash Management Reporting

To prevent future errors in reporting, the School District will establish a simple monthly reconciliation procedure in which reported meal counts are compared to daily meal service records to identify and correct discrepancies before submission.

View Audit 392819

Finding 1181585 (2025-003)

Material Weakness 2025

Odyssey 2020 Academy, INC

TX

Reporting Significant Deficiency

Finding #2025-003 – Reporting – Significant Deficiency. Condition and context: Same as finding #2025-002. Recommendation: Same as finding #2025-002. Planned corrective action: Management acknowledges that documented evidence of supervisory review for certain federal grant billings was not consistent...

Finding #2025-003 – Reporting – Significant Deficiency. Condition and context: Same as finding #2025-002. Recommendation: Same as finding #2025-002. Planned corrective action: Management acknowledges that documented evidence of supervisory review for certain federal grant billings was not consistently maintained, although billings were supported by underlying documentation. Effective immediately, the Academy has implemented a formal review and approval process requiring independent supervisory sign-off prior to submission of all federal grant billings. Standardized documentation procedures have been established to retain evidence of review, including a billing checklist and dated approval, to ensure proper segregation of duties and compliance with federal requirements. Responsible officer: Matthew Sherman, Business and Operations Officer. Estimated completion date: February 26, 2026.

View Audit 392817

Finding 1181580 (2025-001)

Material Weakness 2025

Chippewa Valley Technical College District

WI

Student Financial Aid Reporting

Finding Summary During the recent Federal and State Single Audit report, completed by WIPFLI, it was identified that the institution did not accurately report Last Date of Attendance (LDA) information to the National Student Loan Data System (NSLDS) for the unofficial withdrawal population. Specific...

Finding Summary During the recent Federal and State Single Audit report, completed by WIPFLI, it was identified that the institution did not accurately report Last Date of Attendance (LDA) information to the National Student Loan Data System (NSLDS) for the unofficial withdrawal population. Specifically, adjusted end dates were not being properly communicated to the National Student Clearinghouse (NSC), which is responsible for enrollment reporting to NSLDS. As a result, students’ withdrawal dates were not accurately reflected. Issue Identified Upon notification of the finding, the Financial Aid and Registration & Records offices met to review existing procedures. It was determined that when grades of “F” were assigned, the LDA was updated in our ERP. Since internal systems had the updated last day of attendance, R2T4 calculations were done correctly. However, an enrollment file was not resubmitted to NSC to reflect the revised LDA for enrollment reporting to NSLDS. Corrective Action Taken The institution has implemented the following corrective measures to assure updated Reporting to NSC: o Once the correct LDA is confirmed by the Financial Aid Office the Registrar’s Office updates the student record in the student information system. o The updated LDA is reported to the National Student Clearinghouse (NSC), which in turn updates NSLDS. Internal Controls Implemented To prevent recurrence, the following controls are now in place:  Written procedures have been updated to clearly define: o Roles and responsibilities of Financial Aid and Registrar staff o Timeline for reporting updates to NSC  Staff training was conducted with both departments to ensure understanding of federal reporting requirements. Implementation Date The revised process was implemented immediately upon identification of the issue and is fully operational. Fall 2025 unofficial withdrawals were accurately updated to NSC on 1/15/26. Persons Responsible: Jennifer Anderegg, Dean of Strategic Enrollment Kim Yoder, Director of Financial Aid Jess Schwartz, Registrar

View Audit 392808

Finding 1181556 (2025-001)

Material Weakness 2025

The Pennsylvania State University

PA

Subrecipient Monitoring Internal Control / Segregation of Duties Cash Management § 200.305

Finding Number: 2025-001, Subrecipient Payments Condition: The University did not have adequate controls in place to ensure invoices to subrecipients were paid timely within the 30-calendar-day requirement. Planned Corrective Action: Penn State created a new Subaward Administration and Compliance Of...

Finding Number: 2025-001, Subrecipient Payments Condition: The University did not have adequate controls in place to ensure invoices to subrecipients were paid timely within the 30-calendar-day requirement. Planned Corrective Action: Penn State created a new Subaward Administration and Compliance Office (SACO), which is part of the new Post Award Contractual Compliance Office. The SACO is led by its own director and provides central oversight over key subaward compliance processes, such as subrecipient payments, and provide training to campus on subrecipient processes. This function has already implemented new changes and workflows in the financial system to allow for better tracking and reporting of subaward compliance activities, and continues to refine subaward processes. The creation of this office demonstrates Penn State’s commitment to compliance for subaward activities. Contact person responsible for corrective action: Jason Guilbeault, Assistant Vice President for Research – Post Award Contractual Compliance Anticipated Completion Date: February 27, 2026

View Audit 392770

Finding 1181549 (2025-001)

Material Weakness 2025

SOUTHWESTERN COLLEGE FOUNDATION

CA

Subrecipient Monitoring Reporting

Views of Responsible Officials and Corrective Action Plan We concur. Foundation management has implemented new procedures to ensure all required reporting is performed timely and accurately. We will continue outreach to the Small Business Administration to verify and correct the invalid FAIN number.

View Audit 392752

Finding 1181533 (2025-003)

Material Weakness 2025

Marble Valley Regional Transit District

VT

Cash Management Reporting Significant Deficiency § 200.305

2025-003-Cash Management MVRTD recognizes this material weakness. Several factors lead to the inaccurate billing noted in the audit. Firstly, it must be noted the during FY25 the MVRTD did not have a financial director on staff and the billing work was being performed by a staff accountant with no p...

2025-003-Cash Management MVRTD recognizes this material weakness. Several factors lead to the inaccurate billing noted in the audit. Firstly, it must be noted the during FY25 the MVRTD did not have a financial director on staff and the billing work was being performed by a staff accountant with no previous training in the billing of MVRTD specific grants and no written manuals or instructions were left behind to reference. Due to the fact allocations were set up to be calculated as an automatic entry inside of Passport ( our previous accounting system) and completed outside the system, there were no oversite measures that would have provided a way to prevent or identify duplicate transactions such as the overbilling that occurred. Since July 1, 2025, we have hired a full-time Finance Director and established a new accounting system. We have started using Quick Books Online (QBO), which is a much more detailed and comprehensive accounting system that allows us to be able to identify errors in the billing process and we established an entirely new cost allocation system that is outside of QBO. This ensures an internal and external check and balance system. All invoices and back-up are now being reviewed and approved by the Executive Director. Both the Finance Director and Executive Director will sign off on the invoices before submitting them to the state.

View Audit 392743

Finding 1181518 (2025-005)

Material Weakness 2025

Texas College

TX

Student Financial Aid Reporting

Finding 2025-005 - U.S. Department of Education (USDE, Title IV Student Financial Aid Programs (significant deficiency): Information on the federal program: Federal Direct Student Loans, FAL No. 84.268, June 30, 2025; Federal Pell Grant Program, FAL No. 84. 063, June 30, 2025; Federal Supplemental E...

Finding 2025-005 - U.S. Department of Education (USDE, Title IV Student Financial Aid Programs (significant deficiency): Information on the federal program: Federal Direct Student Loans, FAL No. 84.268, June 30, 2025; Federal Pell Grant Program, FAL No. 84. 063, June 30, 2025; Federal Supplemental Educational Opportunity Grant, FAL No. 84.007, June 30, 2025; Federal Work-Study Program, FAL No. 84.033, June 30, 2025. Condition - Testing of student withdrawals revealed that for three (3) students, Title IV funds identified as unearned through the Return of Title IV (R2T4) process were not returned to the U.S. Department of Education within the required timeframe. The returns were made between 209 and 349 days after the College’s date of determination (DOD), which is well beyond the 45-day requirement established by federal regulations. Views of Responsible Officials – The College accepts the recommendation. The Institution has reviewed the finding and acknowledges that one student record was not submitted for review. The Institution has provided the NSLDS enrollment verification for that student. For the remaining two students, enrollment reporting was not updated within the required 30-day timeframe. The Institution has since updated their enrollment statuses in NSLDS and has provided updated records for review. The Institution respectfully requests that the finding be formally updated, if applicable, upon the auditor’s review and acceptance of all submitted NSLDS enrollment documentation. In response, the institution has updated its processes and procedures regarding student enrollment reporting with NSLDS, by ensuring accurate enrollments status matches the student transcript. Along with continuing to update within the 30 days established timeframe within NSLDS. Responsible Officials -The Registrar, the Financial Aid Office under the direction of the Vice President of Student Affairs, and Business Office under the direction of the Vice President for Business and Finance plan to have the finding resolved by its next fiscal year end audit (between July – October 2026). The College is aware of the need to review and mitigate compliance risks in this area and will use the described corrective action plan to reduce those risks and eliminate the potential for future audit findings.

View Audit 392737

Finding 1181502 (2025-001)

Material Weakness 2025

Texas College

TX

Student Financial Aid Reporting

Finding 2025-001 - U.S. Department of Education (USDE, Title IV Student Financial Aid Programs (significant deficiency): Information on the federal program: Federal Direct Student Loans, FAL No. 84.268, June 30, 2025; Federal Pell Grant Program, FAL No. 84. 063, June 30, 2025; Federal Supplemental E...

Finding 2025-001 - U.S. Department of Education (USDE, Title IV Student Financial Aid Programs (significant deficiency): Information on the federal program: Federal Direct Student Loans, FAL No. 84.268, June 30, 2025; Federal Pell Grant Program, FAL No. 84. 063, June 30, 2025; Federal Supplemental Educational Opportunity Grant, FAL No. 84.007, June 30, 2025; Federal Work-Study Program, FAL No. 84.033, June 30, 2025. Condition– It was noted that the College did not perform the required reconciliations between: a. The Student Financial Aid (SFA) Office records, b. The Business Office/General Ledger (SEFA), and c. The Common Origination and Disbursement (COD) System. In additional, unreconciled figures from the College’s internal records were used in preparing and submitting the Fiscal Operations Report and Application to Participate (FISAP) submitted to the U.S. Department of Education for the most recent award year. As a result, the College could not demonstrate that Title IV activity reported to ED was accurate or fully supported. Subsequent to the identification of this exception, management provided additional documentation intended to support reconciliation activities; however, the documentation did not demonstrate that reconciliations were performed timely or as part of established internal control procedures during the period under audit. Views of Responsible Officials - The College accepts the recommendation. Beginning with future monthly Title IV reconciliations, the Institution will complete all required reconciliations no later than five (5) days after the COD reconciliation reports are made available. The Financial Aid Office will provide the reports to the Business Office for reconciliation. Following reconciliation by the Business Office, the reports will be returned to the Financial Aid Office when resolution of discrepancies is required. Once discrepancies are resolved, the Financial Aid Office will submit the updated reports back to the Business Office, and the resolution will be documented. If no resolution is required, the reports will be retained for the applicable month. All monthly reconciliations will be maintained and made available for review during the yearend audit by the Business Office Responsible Officials- The Financial Aid Office under the direction of the Vice President of Student Affairs plans to have the finding resolved by its next fiscal year end audit (between July – October 2026). The College is aware of the need to review and mitigate compliance risks in this area and will use the described corrective action plan to reduce those risks and eliminate the potential for future audit findings.

View Audit 392737

Finding 1181490 (2025-001)

Material Weakness 2025

Centennial Homes, Inc.

MD

Internal Control / Segregation of Duties Reporting

A. Comments on Finding and Recommendations Management agrees with the audit finding related to the untimely replacement reserve deposit. The missed deposit resulted from a transfer omission during the conversion to new accounting software. Upon identification of the issue, management remitted the re...

A. Comments on Finding and Recommendations Management agrees with the audit finding related to the untimely replacement reserve deposit. The missed deposit resulted from a transfer omission during the conversion to new accounting software. Upon identification of the issue, management remitted the required deposit in full prior to issuance of the audited financial statements. B. Actions Taken or Planned To address the matter and prevent similar exceptions in the future, management has taken the following corrective actions: 1. Reviewed the reserve deposit requirements and confirmed the required transfer amount and timing. 2. Updated the recurring transfer configuration within the new accounting software. 3. Implemented a monthly verification control to confirm that required replacement reserve deposits are processed timely and accurately. 4. Assigned management oversight responsibility for review of monthly reserve funding activity. C. Status of Corrective Action on Prior Findings No prior findings noted. Responsible Party: Managing Agent Planned Completion Date: Corrective action was completed prior to issuance of the audited financial statements, with ongoing monthly monitoring thereafter.

View Audit 392726

Finding 1181489 (2025-001)

Material Weakness 2025

Montgomery Housing, Inc.

MD

Internal Control / Segregation of Duties Reporting

A. Comments on Finding and Recommendations Management agrees with the audit finding related to the untimely replacement reserve deposit. The missed deposit resulted from a transfer omission during the conversion to new accounting software. Upon identification of the issue, management remitted the re...

A. Comments on Finding and Recommendations Management agrees with the audit finding related to the untimely replacement reserve deposit. The missed deposit resulted from a transfer omission during the conversion to new accounting software. Upon identification of the issue, management remitted the required deposit in full prior to issuance of the audited financial statements. B. Actions Taken or Planned To address the matter and prevent similar exceptions in the future, management has taken the following corrective actions: 1. Reviewed the reserve deposit requirements and confirmed the required transfer amount and timing. 2. Updated the recurring transfer configuration within the new accounting software. 3. Implemented a monthly verification control to confirm that required replacement reserve deposits are processed timely and accurately. 4. Assigned management oversight responsibility for review of monthly reserve funding activity. C. Status of Corrective Action on Prior Findings No prior findings noted. Responsible Party: Managing Agent Planned Completion Date: Corrective action was completed prior to issuance of the audited financial statements, with ongoing monthly monitoring thereafter.

View Audit 392725

Finding 1181488 (2025-001)

Material Weakness 2025

Next Step Housing, Inc.

MD

Internal Control / Segregation of Duties Reporting

A. Comments on Finding and Recommendations Management agrees with the audit finding related to the untimely replacement reserve deposit. The missed deposit resulted from a transfer omission during the conversion to new accounting software. Upon identification of the issue, management remitted the re...

A. Comments on Finding and Recommendations Management agrees with the audit finding related to the untimely replacement reserve deposit. The missed deposit resulted from a transfer omission during the conversion to new accounting software. Upon identification of the issue, management remitted the required deposit in full prior to issuance of the audited financial statements. B. Actions Taken or Planned To address the matter and prevent similar exceptions in the future, management has taken the following corrective actions: 1. Reviewed the reserve deposit requirements and confirmed the required transfer amount and timing. 2. Updated the recurring transfer configuration within the new accounting software. 3. Implemented a monthly verification control to confirm that required replacement reserve deposits are processed timely and accurately. 4. Assigned management oversight responsibility for review of monthly reserve funding activity. C. Status of Corrective Action on Prior Findings No prior findings noted. Responsible Party: Managing Agent Planned Completion Date: Corrective action was completed prior to issuance of the audited financial statements, with ongoing monthly monitoring thereafter.

View Audit 392724

Finding 1181409 (2025-001)

Material Weakness 2025

Oklahoma Panhandle State University

OK

Student Financial Aid Matching / Level of Effort / Earmarking Reporting § 200.303

Student Financial Assistance Cluster Assistance Listing No. 84.007, 84.033, 84.063, 84.268 Recommendation: We recommend the University review current processes for reporting to NSLDS and implement procedures to ensure submissions are reported accurately. Explanation of disagreement with audit findin...

Student Financial Assistance Cluster Assistance Listing No. 84.007, 84.033, 84.063, 84.268 Recommendation: We recommend the University review current processes for reporting to NSLDS and implement procedures to ensure submissions are reported accurately. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: As a corrective action, the unit has strengthened internal controls by implementing a dual-review process for all submissions. Following Nikki Stork’s promotion to assistant registrar, submissions are now reviewed by two qualified staff members prior to final approval, providing appropriate segregation of duties and an added level of oversight. Although the specific cause of the incorrect date entry could not be conclusively identified, this enhanced review process mitigates the risk of similar errors and supports continued compliance with federal program requirements. Name(s) of the contact person(s) responsible for corrective action: Erin Moore Planned completion date for corrective action plan: January 30, 2026

View Audit 392658

Finding 1181403 (2025-002)

Material Weakness 2025

Sibley-Ocheyedan Community School District

IA

Internal Control / Segregation of Duties Reporting

The District understands the nature of the weakness and the necessity of oversight and review procedures. The District will review its procedures and continue to implement changes.

View Audit 392654

Finding 1181392 (2025-001)

Material Weakness 2025

Wendell Foster's Campus for Developmental Disabilities, Inc.

KY

Reporting Significant Deficiency § 200.300 § 200.400

The formal policy was written, incorporated in to our comprehensive accounting policies manual, and approved by the board of directors on February 25, 2026.

View Audit 392636

Finding 1181375 (2025-004)

Material Weakness 2025

Town of Barrington, Rhode Island

RI

Subrecipient Monitoring Cash Management Reporting

Corrective Action: The Town will adopt a formal policy establishing procedures and internal controls for the administration and reporting of grant activities to ensure accurate and timely reporting to Federal and pass-through agencies. The policy will provide clear guidance to all departments regard...

Corrective Action: The Town will adopt a formal policy establishing procedures and internal controls for the administration and reporting of grant activities to ensure accurate and timely reporting to Federal and pass-through agencies. The policy will provide clear guidance to all departments regarding the preparation and submission of grant reimbursement requests. In addition, all reimbursement requests will be subject to review by the Finance Department prior to submission to ensure compliance with grant requirements and proper documentation of expenditures.

View Audit 392619

Corrective Action Plans

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