Corrective Action Plans

Finding 1215673 (2025-005)

Material Weakness 2025

MI

Questioned Costs HUD Housing Programs Material Weakness § 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 Questioned Costs 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 Questioned Costs Cash Management

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 Questioned Costs § 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 Questioned Costs 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

Finding 1215504 (2025-001)

Material Weakness 2025

School District of Fort Atkinson

WI

Cash Management Reporting School Nutrition Programs

Condition: Supporting documentation for the monthly food service meals provided did not align with the claims reported for reimbursement by free, reduced, and paid categories. Plan: The District will review supporting documentation for meals to ensure all meals are accounted for. Anticipated Date of...

Condition: Supporting documentation for the monthly food service meals provided did not align with the claims reported for reimbursement by free, reduced, and paid categories. Plan: The District will review supporting documentation for meals to ensure all meals are accounted for. Anticipated Date of Completion: The District will correct this for the 2025-2026 school year. Name of Contact Person: Nathan Knitt, Director of Business Services Management Response: The School District of Fort Atkinson accepts the plan for the Corrective Action listed above and does not dispute anything.

View Audit 402162

Finding 1215492 (2025-005)

Material Weakness 2025

South Big Horn Hospital District

WY

Questioned Costs Reporting Significant Deficiency

2025-005 - Reporting Corrective Action Plan: Management agrees with the finding and has committed the resources giving rise to the finding. Person(s) Responsible: M. Michael Garza Timing for Implementation: June 30, 2026.

View Audit 402151

Finding 1215475 (2025-001)

Material Weakness 2025

Tufts Medical Center Inc. and Affiliates

MA

Eligibility Questioned Costs Student Financial Aid

RE: Funding 2025-001 – Incorrect student status, Corrective Action Plan To whom it may concern: Student Financial Assistance Cluster (ALNs: 84.063 and 84.268) Management concurs with the findings. Management acknowledges that the condition identified is primarily attributable to staff turnover assoc...

RE: Funding 2025-001 – Incorrect student status, Corrective Action Plan To whom it may concern: Student Financial Assistance Cluster (ALNs: 84.063 and 84.268) Management concurs with the findings. Management acknowledges that the condition identified is primarily attributable to staff turnover associated with the closure of the school, which resulted in disruptions to established processes and reduced the effectiveness of controls over the determination and documentation of student eligibility. Management has ensured the appropriate reporting has now been made to the NSLDS. The SFA program has been terminated and therefore will not impact future audits. Leadership Responsible: Colleen Walsh Dean, Student and Alumni Services Lawrence Memorial/Regis College (781) 979-3000 Anticipated Completion date: May 30, 2026

View Audit 402115

Finding 1215471 (2025-002)

Material Weakness 2025

Community Council of Idaho, Inc.

ID

Equipment & Real Property Management HUD Housing Programs Material Weakness § 200.302 § 200.512

Management’s Response Community Council of Idaho, Inc. acknowledges the finding related to untimely reconciliations, material audit adjustments, and delayed financial statement issuance. Management agrees that improvements are necessary to strengthen internal controls over financial reporting, ensur...

Management’s Response Community Council of Idaho, Inc. acknowledges the finding related to untimely reconciliations, material audit adjustments, and delayed financial statement issuance. Management agrees that improvements are necessary to strengthen internal controls over financial reporting, ensure timely account reconciliations, and improve the overall financial close and audit preparation process. Management recognizes that turnover within the business office during the audit year significantly impacted continuity, institutional knowledge, and the timely completion of reconciliations and closing procedures. Subsequent to year end, management has initiated corrective actions designed to improve financial reporting accuracy, accountability, and timeliness. Corrective Actions to Be Implemented 1. Implementation of Formal Monthly Closing Procedures Management will implement a standardized monthly financial close process with defined timelines, responsibilities, and review procedures. The monthly close process will include: Completion of all balance sheet reconciliations, Review of grant and contract revenue accounts, Review of property and equipment activity, Reconciliation of debt schedules, Reconciliation of pharmaceutical inventory balances, Recording of depreciation and interest expense, and Verification that all material journal entries are posted timely. A monthly close checklist will be developed and maintained to ensure consistency and accountability. 2. Timely Reconciliation of Grant and Contract Accounts Management will strengthen procedures surrounding grant and contract accounting to ensure receivables and revenue are reconciled monthly and supported by appropriate documentation. Actions include: Reconciling grant receivable balances to supporting reimbursement requests and funding agency records, Reviewing deferred revenue and earned revenue calculations monthly, Investigating and resolving variances timely, and Implementing supervisory review of grant reconciliations. 3. Enhanced Review and Oversight Controls Management will implement additional review controls over financial reporting and account reconciliations. These controls will include: Documented supervisory review and approval of reconciliations, Review of significant or unusual journal entries, Periodic review of financial statements and supporting schedules by senior finance leadership, and Earlier audit preparation and interim review procedures to identify issues prior to year end. 4. Strengthening Staffing and Organizational Structure Management and executive leadership have evaluated the operational needs of the business office and have taken steps to improve staffing stability and oversight capacity. Actions include: Clarifying accounting roles and responsibilities, Enhancing cross-training within the finance department, Providing additional training related to grant accounting and reconciliations, Utilizing external resources or consultants, as needed, to support complex accounting areas and transition periods. 5. Improvement of Clinic Reporting Processes Management will continue evaluating clinic reporting systems and procedures to ensure operational growth is adequately supported by accounting and financial reporting processes. This includes: Improving coordination between clinic operations and accounting, Standardizing reporting procedures, Evaluating system-generated reports for accuracy and completeness, and Implementing additional reconciliation and review controls related to clinic financial activity. 6. Audit Readiness and Timeliness Improvements Management will establish an audit preparation timeline with interim deadlines to support timely completion of the annual audit and compliance with federal reporting deadlines. The organization will: Prepare schedules and reconciliations in advance of audit fieldwork, Conduct periodic internal reviews of audit support documentation, Improve coordination with external auditors throughout the year, and Monitor progress toward required reporting deadlines. Contact Person Responsible for Corrective Action: Implementation oversight will be shared among executive leadership, finance management, program leadership, and those charged with governance. Anticipated Completion Date: Corrective actions began subsequent to year end and are expected to be substantially implemented during fiscal year 2026, with ongoing monitoring and refinement thereafter.

View Audit 402110

Finding 1215465 (2025-008)

Material Weakness 2025

Delta Research and Educational Foundation

DC

Subrecipient Monitoring Eligibility Reporting

Views of Responsible Officials: The Foundation will retroactively receive the FFATA reports for their sub-recipients, and going forward will ensure that the FFATA reports are received and submitted for all sub-recipients.

View Audit 402102

Finding 1215462 (2025-005)

Material Weakness 2025

Delta Research and Educational Foundation

DC

Reporting § 200.303

Views of Responsible Officials: In March 2026, the Foundation hired a staff accountant that replaced a role that was previously held by a consultant. The Foundation's Board President, in the absence of the vacant Executive Director position, is approving the reports. The reports are being submitted ...

Views of Responsible Officials: In March 2026, the Foundation hired a staff accountant that replaced a role that was previously held by a consultant. The Foundation's Board President, in the absence of the vacant Executive Director position, is approving the reports. The reports are being submitted on a timely basis.

View Audit 402102

Finding 1215460 (2025-001)

Material Weakness 2025

City of Georgetown

KY

Reporting § 200.512

The City originally scheduled time for completion of the audit for the year ended June 30, 2025, in January 2026. However, an audit procedure requiring reconciliation of occupational tax revenues to the Georgetown-Scott County Revenue Commission audit report was delayed until February when a draft o...

The City originally scheduled time for completion of the audit for the year ended June 30, 2025, in January 2026. However, an audit procedure requiring reconciliation of occupational tax revenues to the Georgetown-Scott County Revenue Commission audit report was delayed until February when a draft of that agency’s report became available to the City. Thus, the City received a draft of its audit report on February 24, 2026, for review and completion of final audit items. Due to staff workload in the month of March, final audit items were not completed until April. Staff was not aware that a late submission would result in a finding, whereas it had not in the past due to deadline extensions by the FAC or past audit firm policy as applied to this deadline. The City will review staffing levels and create more stringent reminders and timelines for completion of audit items in the future now that they are aware that the submission deadline is not automatically extended each year.

View Audit 402085

Finding 1215456 (2025-004)

Material Weakness 2025

Murphy Senior Living, INC

MO

HUD Housing Programs Questioned Costs Reporting

S3800-090 Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Concur S3800-130 Response Indicator: Agree S3800-140 Completion Date: April 20, 2026 S3800-150 Response: The Project deposited $2,000 to the security deposit account to increase the balance so that it will mee...

S3800-090 Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Concur S3800-130 Response Indicator: Agree S3800-140 Completion Date: April 20, 2026 S3800-150 Response: The Project deposited $2,000 to the security deposit account to increase the balance so that it will meet the requirement of maintaining the security deposit account at a balance equal to or more than the security deposit liability account as of April 20, 2026. S3800-160 Contact Person - First Name: Dawn S3800-180 Contact Person - Last Name: Kleinschrodt

View Audit 402074

Finding 1215454 (2025-003)

Material Weakness 2025

Murphy Senior Living, INC

MO

HUD Housing Programs Questioned Costs Reporting

S3800-090 Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Concur S3800-130 Response Indicator: Agree S3800-140 Completion Date: April 30, 2026 S3800-150 Response: The Project will make the necessary catch-up deposits to the replacement reserve to cover the identified...

S3800-090 Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Concur S3800-130 Response Indicator: Agree S3800-140 Completion Date: April 30, 2026 S3800-150 Response: The Project will make the necessary catch-up deposits to the replacement reserve to cover the identified shortfall once the amount is confirmed with the lender/escrow holder. The Project has updated its processes to reflect the increased monthly deposit for replacement reserves. S3800-160 Contact Person - First Name: Dawn S3800-180 Contact Person - Last Name: Kleinschrodt

View Audit 402074

Finding 1215452 (2025-001)

Material Weakness 2025

Murphy Senior Living, INC

MO

Reporting Questioned Costs

S3800-090 Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Concur S3800-130 Response Indicator: Agree S3800-140 Completion Date: May 31, 2026 S3800-150 Response: The Project has been in contact with its electric utility provider and is currently working to reconcile t...

S3800-090 Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Concur S3800-130 Response Indicator: Agree S3800-140 Completion Date: May 31, 2026 S3800-150 Response: The Project has been in contact with its electric utility provider and is currently working to reconcile the outstanding balance. Management anticipates that the entire amount owed will be settled by May 31, 2026, through a series of incremental payments. S3800-160 Contact Person - First Name: Dawn S3800-180 Contact Person - Last Name: Kleinschrodt

View Audit 402074

Finding 1215422 (2025-001)

Material Weakness 2025

Benton County, Or

OR

Reporting

BENTON COUNTY MANAGEMENT RESPONSE AND CORRECTIVE ACTION PLAN Finding 2025-001 – Late Submissions for Financial Reporting Federal Program: Congressional Directives Grant Program Fiscal Year End: June 30, 2025 Finding Reference: 2025-001 Management Response Management concurs with the finding. During ...

BENTON COUNTY MANAGEMENT RESPONSE AND CORRECTIVE ACTION PLAN Finding 2025-001 – Late Submissions for Financial Reporting Federal Program: Congressional Directives Grant Program Fiscal Year End: June 30, 2025 Finding Reference: 2025-001 Management Response Management concurs with the finding. During the fiscal year, staffing transitions and delays in obtaining access to required federal reporting systems contributed to late submission of required reports. In addition, shared responsibilities between program and finance staff resulted in coordination challenges related to grant reporting requirements. The County recognizes the importance of timely grant reporting and is committed to improving internal coordination, documentation, and oversight processes to support compliance with federal reporting requirements. For this finding, while the report was indeed filed late, the County was always aware of the due date but was unable to gain access to the system to complete the report. The inability to access the system was the reason for non-reporting, and the Grantor was made aware the County could not file report until access was gained. Corrective Action Plan Benton County will enhance internal processes and coordination efforts between program staff and the Finance Department to support timely completion and submission of required federal reports. Management will continue strengthening procedures related to grant administration, reporting timelines, and continuity of operations to improve overall compliance with reporting requirements. The County will also continue efforts to improve communication, documentation, and oversight associated with grant reporting responsibilities to reduce the risk of late future submissions. Anticipated Completion Date June 30, 2026

View Audit 402024

Finding 1215421 (2025-002)

Material Weakness 2025

Marion County

SC

Reporting Internal Control / Segregation of Duties

Council and Administration will continue to use supervisory reviews such as monitoring financial statements and budget reports, and segregate duties where costs beneficial to do so.

View Audit 402023

Corrective Action Plans

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