Corrective Action Plans

Finding 1201002 (2025-005)

Material Weakness 2025

Cal State L.a. University Auxiliary Services, Inc.

CA

Subrecipient Monitoring Reporting Questioned Costs

Management agrees with the finding and acknowledges that a significant deficiency was identified related to report submission delay. To prevent this issue from recurring, we are implementing several corrective actions. These include establishing a stricter communication schedule with Post Award Admi...

Management agrees with the finding and acknowledges that a significant deficiency was identified related to report submission delay. To prevent this issue from recurring, we are implementing several corrective actions. These include establishing a stricter communication schedule with Post Award Administrators to ensure timely submission of reports and strengthening of our internal monitoring procedures by tracking submission deadlines more closely. Contact person responsible for corrective action: Lynne Duong, Compliance and Risk Manager Anticipated completion date: June 30, 2026

View Audit 395832

Finding 1200994 (2025-004)

Material Weakness 2025

Cal State L.a. University Auxiliary Services, Inc.

CA

Subrecipient Monitoring Reporting

Management agrees with the finding and will reevaluate internal processes and procedures. This error highlights the need for better oversight and timely communication between our organization and its subrecipients to ensure accurate reporting. The root cause of this issue was insufficient monitoring...

Management agrees with the finding and will reevaluate internal processes and procedures. This error highlights the need for better oversight and timely communication between our organization and its subrecipients to ensure accurate reporting. The root cause of this issue was insufficient monitoring and communication between the subrecipient and our grants management team. To address this, we are implementing several corrective actions. These include establishing a stricter communication schedule with subrecipients to ensure timely submission of invoices and expense reports and strengthening our internal monitoring procedures by tracking submission deadlines more closely. Additionally, we will improve guidance and capacity-building efforts for subrecipients to ensure they understand reporting requirements, and we will conduct quarterly reviews of subrecipient expenses to proactively identify and mitigate reporting delays. Contact person responsible for corrective action: Lynne Duong, Compliance and Risk Manager Anticipated completion date: June 30, 2026

View Audit 395832

Finding 1200840 (2025-010)

Material Weakness 2025

State of New Jersey

NJ

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring

Disaster Grants –Public Assistance (Presidentially Declared Disasters) (97.036) COVID-19 Disaster Grants –Public Assistance (Presidentially Declared Disasters) (97.036) State Agency: Department of Law and Public Safety Federal Agency: U.S. Department of Homeland Security Disaster Grants –Public Assi...

Disaster Grants –Public Assistance (Presidentially Declared Disasters) (97.036) COVID-19 Disaster Grants –Public Assistance (Presidentially Declared Disasters) (97.036) State Agency: Department of Law and Public Safety Federal Agency: U.S. Department of Homeland Security Disaster Grants –Public Assistance (Presidentially Declared Disasters) (97.036) COVID-19 Disaster Grants –Public Assistance (Presidentially Declared Disasters) (97.036) State Agency: Department of Law and Public Safety Federal Agency: U.S. Department of Homeland Security Reporting - Federal Funding Accountability and Transparency Act (FFATA) VIEWS OF RESPONSIBLE OFFICIALS AND CORRECTIVE ACTION PLAN The Department of Law and Public Safety (DLPS) acknowledges that certain FFATA reports for awards obligated in prior fiscal years were not submitted on time due to technical issues with the FEMA system, which prevented timely reporting. These technical issues have since been resolved. The DLPS has been in full compliance with FFATA reporting requirements since August 2024. COMPLETION DATE/ CONTACT PERSON & PHONE# Fiscal Year 2024 and Ongoing Salvatore Marcello (609) 882-2000 ext.3046 Salvatore.Marcello@njsp.gov

View Audit 395830

Finding 1200838 (2025-009)

Material Weakness 2025

State of New Jersey

NJ

Procurement, Suspension & Debarment Cash Management Reporting

Block Grants for Prevention and Treatment of Substance Abuse (93.959) COVID-19 –Block Grants for Prevention and Treatment of Substance Abuse (93.959) State Agency: Department of Human Services Federal Agency: U.S. Department of Health and Human Services Reporting – Federal Funding Accountability and...

Block Grants for Prevention and Treatment of Substance Abuse (93.959) COVID-19 –Block Grants for Prevention and Treatment of Substance Abuse (93.959) State Agency: Department of Human Services Federal Agency: U.S. Department of Health and Human Services Reporting – Federal Funding Accountability and Transparency Act (FFATA) VIEWS OF RESPONSIBLE OFFICIALS AND CORRECTIVE ACTION PLAN The Department of Human Services, Division of Mental Health and Addiction Services (DMHAS) does not dispute the FFATA upload dates for three (3) of the thirteen (13) subawards tested, but it disputes that such uploads were untimely. One subaward was uploaded only seven (7) days late. DMHAS submits that it substantially complied, no finding should issue and no corrective action is required in that instance. The two (2) remaining awards at issue were funded with the ARPA Block Grant. On March 24, 2025, U.S. DHHS took unprecedented action and issued a notice of early termination of ARPA funding, purportedly for cause because the Covid-19 health emergency had ended. The notice of early termination and subsequent, revised Notice of Award (NOA), required DMHAS to cease all activities. It also sought to revise the original grant terms, retroactive to the original September 1, 2021 project start date. By way of example, the revised NOA also includes new conditions and certifications required to draw down federal funds. DMHAS complied with the notice of early termination and immediately ceased all activities; it stopped issuing subaward letters, it ceased all subaward uploads into its Contract Information Management System, it stopped all reimbursements, and it stopped all FFATA uploads pending or in process. Also in response to the abrupt early termination of funding, DMHAS issued “stop work” orders to all impacted agencies and advised that there was no assurance of reimbursement as of the effective date of notice. Shortly thereafter, DMHAS joined numerous other State authorities and filed a formal complaint in federal district court, alleging that the early termination was unlawful and caused the States irreparable harm. On April 5, 2025, the court entered a temporary injunction and scheduled a hearing for preliminary injunctive relief. U.S. DHHS moved for reconsideration. Several weeks later, the Court entered a preliminary injunction enjoining the enforcement of the early termination of ARPA until further order of the Court. The cessation of FFATA uploads from the March termination to the receipt of injunctive relief was necessary to: 1. Maintain strict compliance with the revised NOA terms and conditions, including the written obligation to cease all activities; 2. Maintain strict compliance with the revised NOA terms and conditions, by issuing “stop work” orders; 3. Ensuring DMHAS’s “stop work” orders were not superseded by FFATA uploads or USA.Spending publications while the request for injunctive relief was pending, so no individual or entity (including the US Office of the Attorney General, US DHHS, or subawardee) could construe the upload as renewed authority to continue to expend funds through subaward end date; 4. Fully protect the prosecution of DMHAS’s claims in the pending, federal litigation, as well as DMHAS’s defenses; and 5. Mitigate DMHAS and subawardee damages in the underlying litigation. Based on the unprecedented early termination of block grant funding and ensuing litigation, DMHAS submits that the timeline to complete FFATA uploads was stayed. Such determination is consistent with the Court’s preliminary injunction, which makes clear that U.S. DHHS immediately treat any actions taken to implement or enforce the early funding terminations, as null and void and rescinded. Therefore, DMHAS should not be issued a FFATA finding that relates directly to the revised NOAs or the direction to cease all activities, and under these extraordinary circumstances, the uploads in question should be classified as non-reportable and immaterial, with no corrective action required. COMPLETION DATE/ CONTACT PERSON & PHONE# January 1,2025 Gordon Horvath, CFO (609) 544-6817 Gordon.Horvath@dhs.nj.gov John Fogliano, Deputy CFO (609) 438-4278 John.Fogliano@dhs.nj.gov

View Audit 395830

Finding 1200835 (2025-007)

Material Weakness 2025

State of New Jersey

NJ

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring

Child Care and Development Fund Cluster (93.575, 93.596) COVID-19 Child Care and Development Fund Cluster (93.575, 93.596) State Agency: Department of Human Services Federal Agency: U.S. Department of Health and Human Services Reporting – Federal Financial Accountability and Transparency Act (FFATA)...

Child Care and Development Fund Cluster (93.575, 93.596) COVID-19 Child Care and Development Fund Cluster (93.575, 93.596) State Agency: Department of Human Services Federal Agency: U.S. Department of Health and Human Services Reporting – Federal Financial Accountability and Transparency Act (FFATA) VIEWS OF RESPONSIBLE OFFICIALS AND CORRECTIVE ACTION PLAN The New Jersey Department of Human Services’ Division of Family Development (DHD/DFD) has taken significant steps to ensure the effective management of FFATA (Federal Funding Accountability and Transparency Act) data. DHD/DFD has appointed qualified personnel dedicated to the accurate reporting of FFATA information. All appointed personnel have undergone comprehensive training programs designed to equip them with the knowledge and skills required for accurate entry and maintenance of FFATA data. DHD/DFD and its internal units will work in close coordination to manage, review, and validate FFATA submissions. COMPLETION DATE/ CONTACT PERSON June 30, 2026 Robert Hughes (609) 584-4041 Robert.Hughes@dhs.nj.gov

View Audit 395830

Finding 1200833 (2025-006)

Material Weakness 2025

State of New Jersey

NJ

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring

Temporary Assistance for Needy Families (93.558) State Agency: Department of Human Services Federal Agency: U.S. Department of Health and Human Services Reporting – Federal Financial Accountability and Transparency Act (FFATA) VIEWS OF RESPONSIBLE OFFICIALS AND CORRECTIVE ACTION PLAN The New Jersey ...

Temporary Assistance for Needy Families (93.558) State Agency: Department of Human Services Federal Agency: U.S. Department of Health and Human Services Reporting – Federal Financial Accountability and Transparency Act (FFATA) VIEWS OF RESPONSIBLE OFFICIALS AND CORRECTIVE ACTION PLAN The New Jersey Department of Human Services’ Division of Family Development (DHD/DFD) has taken significant steps to ensure the effective management of FFATA (Federal Funding Accountability and Transparency Act) data. DHD/DFD has appointed qualified personnel dedicated to the accurate reporting of FFATA information. All appointed personnel have undergone comprehensive training programs designed to equip them with the knowledge and skills required for the accurate entry and maintenance of FFATA data. DHD/DFD and its internal units will work in close coordination to manage, review, and validate FFATA submissions. COMPLETION DATE/ CONTACT PERSON June 30, 2026 Robert Hughes (609) 584-4041 Robert.Hughes@dhs.nj.gov

View Audit 395830

Finding 1200832 (2025-005)

Material Weakness 2025

State of New Jersey

NJ

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring

Covid-19 - Coronavirus Capital Projects Funds (21.029) State Agency: Department of Community Affairs Federal Agency: U.S. Department of the Treasury Reporting – Federal Funding Accountability and Transparency Act (FFATA) VIEWS OF RESPONSIBLE OFFICIALS AND CORRECTIVE ACTION PLAN The Department of Com...

Covid-19 - Coronavirus Capital Projects Funds (21.029) State Agency: Department of Community Affairs Federal Agency: U.S. Department of the Treasury Reporting – Federal Funding Accountability and Transparency Act (FFATA) VIEWS OF RESPONSIBLE OFFICIALS AND CORRECTIVE ACTION PLAN The Department of Community Affairs (DCA) has effectively executed a comprehensive corrective action plan to address and rectify findings related to the Federal Funding Accountability and Transparency Act (FFATA). The issue of late FFATA submissions was originally identified in the Single Audit for fiscal year 2024. In recognition of the overlap, DCA undertook all necessary updates and enhancements to its reporting processes prior to the fiscal year 2025 audit. The findings persisted into fiscal year 2025 due to the inability to make retroactive changes in SAM.gov for past updates. To mitigate this, the department has implemented robust protocols and systems designed to ensure the accuracy and timeliness of future financial disclosures, thereby preventing the recurrence of similar issues. COMPLETION DATE/ CONTACT PERSON & PHONE# June 01, 2025 Vera Ricciardi 609-930-1479 VeraEllen.Ricciardi@dca.nj.gov

View Audit 395830

Finding 1200828 (2025-003)

Material Weakness 2025

State of New Jersey

NJ

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring

Workforce Innovation and Opportunity Act (WIOA) Cluster (17.258, 17.259, 17.278) State Agency: Department of Labor and Workforce Development Federal Agency: U.S. Department of Labor Reporting – Federal Funding Accountability and Transparency Act (FFATA) VIEWS OF RESPONSIBLE OFFICIALS AND CORRECTIVE ...

Workforce Innovation and Opportunity Act (WIOA) Cluster (17.258, 17.259, 17.278) State Agency: Department of Labor and Workforce Development Federal Agency: U.S. Department of Labor Reporting – Federal Funding Accountability and Transparency Act (FFATA) VIEWS OF RESPONSIBLE OFFICIALS AND CORRECTIVE ACTION PLAN The New Jersey Department of Labor and Workforce Development (DLWD) has transitioned from a manual contract agreement process to a web-based grant administration system using the System for Administering Grants Electronically (SAGE) and IntelliGrants (IGX) applications. The DLWD FFATA Reporting Unit accesses these automated systems and monitors them monthly to identify new Subaward contracts/agreements for timely reporting in the FFATA system. Additionally, the DLWD Fiscal & Accounting Division will complete the full implementation of this transition by developing stronger internal controls and procedures to ensure that all required subawards are reported no later than the end of the month following issuance, in accordance with FFATA reporting requirements. COMPLETION DATE/ CONTACT PERSON July 31, 2026 Ahmanish Robinson (609) 984-4356 Ahmanish.Robinson@dol.nj.gov Theresa Vallely (609) 984-1779 Theresa.Vallely@dol.nj.gov

View Audit 395830

Finding 1200825 (2025-002)

Material Weakness 2025

State of New Jersey

NJ

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring

Community Development Block Grants Disaster Recovery (14.269, 14.272) State Agency: Department of Community Affairs Federal Agency: U.S. Department of Housing and Urban Development Reporting – Federal Funding Accountability and Transparency Act (FFATA) VIEWS OF RESPONSIBLE OFFICIALS AND CORRECTIVE A...

Community Development Block Grants Disaster Recovery (14.269, 14.272) State Agency: Department of Community Affairs Federal Agency: U.S. Department of Housing and Urban Development Reporting – Federal Funding Accountability and Transparency Act (FFATA) VIEWS OF RESPONSIBLE OFFICIALS AND CORRECTIVE ACTION PLAN The Department of Community Affairs (DCA) acknowledges prior instances of delayed reporting for subawards under the Federal Funding Accountability and Transparency Act (FFATA). The most recent subaward reviewed under the FY 2025 single audit for compliance occurred in November 2021. Subsequent to this audit, DCA has undertaken and completed a thorough revision of its policies and procedures to enhance both accountability and transparency.Following these updates, DCA is currently in full compliance with all aspects of FFATA, including those related to timeliness. Additionally, DCA is committed to the continuous review and enhancement of its processes to maintain alignment with all federal requirements, thereby reinforcing its dedication to upholding the highest standards of compliance and reporting accuracy. COMPLETION DATE/ CONTACT PERSON June 01, 2025 Vera Ricciardi 609-930-1479 VeraEllen.Ricciardi@dca.nj.gov

View Audit 395830

Finding 1200822 (2025-001)

Material Weakness 2025

Farmington Central Cusd No. 265

IL

Internal Control / Segregation of Duties Questioned Costs Cash Management

Condition: The same individual is responsible for preparing and submitting monthly reimbursement claims for the Child Nutrition Program without an independent review or approval prior to submission. Plan: A second person (Superintendent) compares the meal counts in the claim to the Skyward daily mea...

Condition: The same individual is responsible for preparing and submitting monthly reimbursement claims for the Child Nutrition Program without an independent review or approval prior to submission. Plan: A second person (Superintendent) compares the meal counts in the claim to the Skyward daily meal count reports, monthly participation summary, eligibility rosters (free, reduced, paid) and USDA reimbursement rates. The reviewer will then sign and date a reconciliation sheet before submission.

View Audit 395827

Finding 1200815 (2025-003)

Material Weakness 2025

Avila University

MO

Cash Management Questioned Costs Reporting

Management is responsible for submitting accurate information when requesting federal funds to maintain compliance with reporting requirements. Personnel Responsible for Corrective Action: Josh Dining, Controller Anticipated Completion Date: Corrective action plan will be implemented by June 30, 202...

Management is responsible for submitting accurate information when requesting federal funds to maintain compliance with reporting requirements. Personnel Responsible for Corrective Action: Josh Dining, Controller Anticipated Completion Date: Corrective action plan will be implemented by June 30, 2026. Corrective Action Plan – Management will update practices and implement procedures to ensure that only actual incurred costs will be included on the request for reimbursement forms on a go-forward basis.

View Audit 395824

Finding 1200814 (2025-002)

Material Weakness 2025

Avila University

MO

Student Financial Aid Questioned Costs Special Tests & Provisions

Management is responsible for ensuring accurate and timely reporting of enrollment data to the appropriate governmental authorities. Personnel Responsible for Corrective Action: Josh Dining, Controller Anticipated Completion Date: Corrective action plan will be implemented by June 30, 2026. Correcti...

Management is responsible for ensuring accurate and timely reporting of enrollment data to the appropriate governmental authorities. Personnel Responsible for Corrective Action: Josh Dining, Controller Anticipated Completion Date: Corrective action plan will be implemented by June 30, 2026. Corrective Action Plan – Management has provided training and is aware of the federal regulations surrounding enrollment reporting. The financial aid department will make regular updates to NSLDS on a monthly basis to ensure student information is reported accurately and timely.

View Audit 395824

Finding 1200805 (2025-002)

Material Weakness 2025

City of Detroit Water and Sewerage Department

MI

Subrecipient Monitoring Questioned Costs Material Weakness

Finding Number: 2025-002 Condition: DWSD did not have controls in place to verify that required contract provisions were included in contracts executed under this award or to ensure receipt of weekly certified payroll records from all contractors. Planned Corrective Action: DWSD will improve contrac...

Finding Number: 2025-002 Condition: DWSD did not have controls in place to verify that required contract provisions were included in contracts executed under this award or to ensure receipt of weekly certified payroll records from all contractors. Planned Corrective Action: DWSD will improve contract provisional and certified payroll monitoring controls, as well as provide training on federal contract requirements. These improvements start with incorporating pre-execution compliance checklist and completing compliance reviews. In addition, formal standardized payroll submission process will be required weekly, where applicable. This process will include monitoring contractor payroll tracking logs, review and approvals, and payment controls for missing or inaccurate payroll documentation. Contact person responsible for corrective action: Istakur Rahman Anticipated Completion Date: 6/30/2026

View Audit 395816

Finding 1200791 (2025-002)

Material Weakness 2025

Solutionhealth, Inc.

NH

Questioned Costs Reporting

Submission of Reports: Criteria: Management was responsible for submitting certain reports to the grantor including an annual report in accordance with the Uniform Guidance within 120 days after the close of the fiscal year. Condition: During compliance testing, it was determined that this report wa...

Submission of Reports: Criteria: Management was responsible for submitting certain reports to the grantor including an annual report in accordance with the Uniform Guidance within 120 days after the close of the fiscal year. Condition: During compliance testing, it was determined that this report was not submitted within the required timeframe to the grantor. Context: Required reporting was not submitted to the grantor within the required timeframe. Cause: Management was not aware of the required timeframe of this report and therefore did not submit it to the grantor. Effect: As a result of the condition, the System did not submit required report within the required timeframe. Questioned Costs: None. Repeat Finding: No. Recommendation: In the future, the System should ensure it implements appropriate processes and controls to ensure all necessary reports are provided to the grantor in accordance with related agreements. Contact: Michael Hammond, Interim Health System Controller. Corrective Actions Taken or Planned: Management acknowledges the finding and submits the proper reports to the grantor on a monthly basis. A team has been set up to evaluate any future grant requirements and action items with due dates of what needs to be taken.

View Audit 395806

Finding 1200788 (2025-003)

Material Weakness 2025

Heart of Iowa Regional Transit Agency

IA

Reporting

We will put procedures in place within our Accounting policy to ensure reports are reviewed/approved and are submitted timely.

View Audit 395797

Finding 1200787 (2025-003)

Material Weakness 2025

Lewis & Clark County

MT

Reporting Internal Control / Segregation of Duties Significant Deficiency

Federal Agency Name: U.S. Department of Treasury Assistance Listing Number: 21.027 Program Name: Coronavirus State and Local Fiscal Recovery Funds Finding Summary: Inaccurate reporting procedures were noted in 2 quarter’s performance reports. Corrective Action Plan: Each quarter, County grant staff ...

Federal Agency Name: U.S. Department of Treasury Assistance Listing Number: 21.027 Program Name: Coronavirus State and Local Fiscal Recovery Funds Finding Summary: Inaccurate reporting procedures were noted in 2 quarter’s performance reports. Corrective Action Plan: Each quarter, County grant staff report ARPA project expenditures that incurred during the reporting period in the online U.S. Department of Treasury’s COVID-19 Relief Hub (the Treasury portal). For all open projects, staff must manually enter total cumulative expenditures, current period obligations, and current period expenditures. In some cases, expenditures cannot be entered within the “Project Overview” section and must be entered separately in the “Expenditure” section of the Treasury portal, creating an additional step of manual data entry to record quarterly expenditures. The County has identified several system limitations within the Treasury portal that increase the risk of reporting errors. The Treasury portal does not calculate cumulative expenditures automatically; cumulative expenditure totals must be manually re-entered for each reporting period. Current period expenditures do not automatically roll into cumulative totals. The Treasury portal also lacks automated reconciliation or validation checks, meaning that errors in current period expenditure entries are not flagged and will not be reflected in cumulative expenditure totals. Additionally, the Treasury portal does not allow copying and pasting of data, requiring all amounts to be entered manually, which further increases the risk of data entry errors. To address these limitations and strengthen controls, County staff have implemented the following corrective actions: 1. Quarterly Project-Level Reconciliation Control A formal quarterly reconciliation process has been implemented at the individual project level. For each reporting period: • Each project expenditure that is recorded for the reporting period is reconciled to the internal project tracking spreadsheet, rather than only reconciling the total cumulative expenditures that appear on the front Project Overview page of the COVID-19 Relief Hub. o The internal tracking spreadsheet is updated quarterly using data from the General Ledger and individual ARPA project financial reports. • After entering expenditures into the Treasury portal is completed, staff re-open each project entry to verify accuracy and confirm that expenditures were entered correctly and no errors occurred. • Staff check for expenditure accuracy in both the “Project Status” and “Expenditure Status” tab in the Treasury portal, to ensure expenditures match and were recorded correctly. 2. Secondary Review Control All Treasury reports have a secondary review prior to submission. • The Grants Specialist prepares and enters the report. • The Grants and Procurement Director independently reviews reported amounts against the internal tracking spreadsheet. • Any discrepancies are resolved prior to report submission. This dual-review process provides segregation of duties and reduces the risk of undetected reporting errors. These procedures have been implemented and will be consistently applied for all future reporting periods to ensure accurate, complete, and reliable reporting. Responsible Individual(s): Ann McCauley, Grants and Procurement Director Elisa Fiaschetti, ARPA Program and Grants Specialist Anticipated Completion Date: January 2026

View Audit 395792

Finding 1200778 (2025-001)

Material Weakness 2025

University of Massachusetts

MA

Student Financial Aid Questioned Costs Subrecipient Monitoring

The University of Massachusetts acknowledges the enrollment status of certain students was not accurately or timely transmitted to the National Student Loan Data System (NSLDS). The University will implement additional controls and procedures to ensure data is transmitted to NSLDS correctly and time...

The University of Massachusetts acknowledges the enrollment status of certain students was not accurately or timely transmitted to the National Student Loan Data System (NSLDS). The University will implement additional controls and procedures to ensure data is transmitted to NSLDS correctly and timely, including increased reviews of data submitted to NSDLS, and a reconciliation of student status with NSLDS. The corrective action plan will be implemented by May 31, 2026. For further details regarding the corrective action plan, contact the Assistant Vice President and University Controller, Patrick Hitchcock, at phitchcock@umassp.edu

View Audit 395774

Finding 1200776 (2025-003)

Material Weakness 2025

Sioux Falls School District 49-5

SD

Student Financial Aid Period of Performance Reporting

Identifying Number: 2025-003: U.S. Department of Education: Federal Direct Student Loans – 84.268 Finding: During testing over enrollment reporting, one instance was identified where a student’s program begin date was incorrectly reported to NDSLDS. Corrective Action Taken or Planned: There were sev...

Identifying Number: 2025-003: U.S. Department of Education: Federal Direct Student Loans – 84.268 Finding: During testing over enrollment reporting, one instance was identified where a student’s program begin date was incorrectly reported to NDSLDS. Corrective Action Taken or Planned: There were several instances of dates submitted through the National Student Clearinghouse to NSLDS where dates were not aligning to submissions. In all but one case, those dates were confirmed to be matching the NSC submission and were not found to be erroneous. The one date is suspected to be due to a program change and those students with changes will be monitored by the Registrar and the Financial Aid Office. Contact person: Micah Hansen, Director of Financial Aid Status of finding – The above corrective actions will be implemented beginning January 1, 2026.

View Audit 395771

Finding 1200765 (2025-002)

Material Weakness 2025

Distinctive Schools

IL

Questioned Costs Subrecipient Monitoring Reporting

The Organization will adopt formal procedures to assess FFATA applicability for every subaward, require FFATA reporting in FSRS.gov by the end of the month following the subaward obligation, and train program and grants staff on FFATA requirements and documentation.

View Audit 395758

Finding 1200763 (2025-002)

Material Weakness 2025

Valdese Economic Development Investment Corporation

NC

Reporting

The audit engagement letter will include the 90-day requirement for completion of the audit for fiscal year ending June 30, 2026.

View Audit 395756

Finding 1200762 (2025-005)

Material Weakness 2025

Central College

IA

Reporting Questioned Costs Material Weakness

Finding Number: 2025-005 Condition: The College did not include their Community Facilities Loans on the Schedule of Federal Expenditures in prior years. Planned Corrective Action: The College will ensure that updates to compliance requirements are identified and complied with through review of Compl...

Finding Number: 2025-005 Condition: The College did not include their Community Facilities Loans on the Schedule of Federal Expenditures in prior years. Planned Corrective Action: The College will ensure that updates to compliance requirements are identified and complied with through review of Compliance supplements and other resources. The College will continue to reconcile grant funds received to the SEFA to ensure that all appropriate programs are included. Contact person responsible for corrective action: Kayla Flanders Anticipated Completion Date: 6/30/2026

View Audit 395745

Finding 1200737 (2025-006)

Material Weakness 2025

Municipality of Penuelas

PR

Questioned Costs Subrecipient Monitoring Material Weakness

We concur with the finding. The Municipality has reclassified all expenditures to the appropriate program fund and project codes corresponding to each individual PW. In addition, the Finance Department has assigned program and accounting staff to ensure the proper recording and classification of exp...

We concur with the finding. The Municipality has reclassified all expenditures to the appropriate program fund and project codes corresponding to each individual PW. In addition, the Finance Department has assigned program and accounting staff to ensure the proper recording and classification of expenditures, thereby maintaining compliance with FEMA and other funding requirements. Implementation date: February 23, 2026 Responsable Person: Mrs. Omayra Báez Caraballo Finance Department Director

View Audit 395733

Finding 1200736 (2025-005)

Material Weakness 2025

Municipality of Penuelas

PR

Subrecipient Monitoring Questioned Costs Material Weakness

We concur with the finding. The Municipality has implemented the following corrective measures: The Municipality provides training to personnel responsible for grant reporting, covering the preparation and timely submission of all CDBG financial reports, including proper documentation and reconcilia...

We concur with the finding. The Municipality has implemented the following corrective measures: The Municipality provides training to personnel responsible for grant reporting, covering the preparation and timely submission of all CDBG financial reports, including proper documentation and reconciliation of program expenditures. The Municipality has assigned a staff member to monitor all grant reporting deadlines and coordinate with the pass-through entity to ensure timely report submissions. Implementation date: July 1, 2026 Responsible Person: Mrs. Omayra Báez Caraballo Finance Department Director

View Audit 395733

Finding 1200735 (2025-024)

Material Weakness 2025

State of Louisiana

LA

Questioned Costs Special Tests & Provisions Reporting

Dear Mr. Waguespack: The Louisiana Department of Health (LDH) acknowledges receipt of correspondence from the Louisiana Legislative Auditor (LLA) dated December 4, 2025 titled Noncompliance with Managed Care Provider Enrollment and Screening Requirement. LDH appreciates the opportunity to provide th...

Dear Mr. Waguespack: The Louisiana Department of Health (LDH) acknowledges receipt of correspondence from the Louisiana Legislative Auditor (LLA) dated December 4, 2025 titled Noncompliance with Managed Care Provider Enrollment and Screening Requirement. LDH appreciates the opportunity to provide this response to your office's findings. Finding: Noncompliance with Managed Care Provider Enrollment and Screening Requirement. Recommendation: LDH should ensure all providers are screened and enrolled as required by federal regulations. LDH Response: LDH concurs with the LLA's finding and has determined the factors that resulted in certain providers not being enrolled as required. Corrective Action: Both system enhancements and procedural modifications are necessary to ensure that all providers are appropriately screened and enrolled. LDH has identified the following contributing factors and has initiated the requisite corrective actions with Gainwell Technologies: 1. Certain Fee-for-Service (FFS) providers undergoing a change of ownership (CHOW) did not have their updated National Provider Identifier (NPI) accurately reflected in the provider enrollment portal, causing them to be classified as unenrolled. Corrective Action Plan: The strengthening of the current process will ensure that all new CHOW updates received are recorded as part of standard daily operations within both the FFS and Provider Enrollment Portal environments. In parallel, the development of a defined solution path for automating the historical CHOW reconciliation remains underway, with full end-to-end automation identified as a longer-term 2026 priority milestone. This project is presently in tech assessment status. 2. Some providers were not invited to initiate the enrollment process because they did not meet the established eligibility criteria. Corrective Action Plan: A comprehensive review of the established inclusion criteria will be conducted to determine which criteria should be amended, retained, or removed. Corresponding procedural and system modifications will be implemented to ensure that all eligible providers are appropriately invited to enroll. Corrective action is expected to be completed by March 31, 2026. 3. Certain Durable Medical Equipment (DME) provider records were configured in a manner that inadvertently excluded them from the active provider population displayed in the enrollment portal. Corrective Action Plan: A comprehensive review of DME provider records associated with the exclusionary provider cancel reason code 38 will be conducted to identify records eligible for reactivation. Records verified as holding valid and current accreditation will be reprocessed for inclusion in the Provider Enrollment Portal, whereas records with unresolved compliance issues will remain inactive until the required documentation is received. Corrective action is expected to be completed by March 31, 2026. You may contact Seth Gold, Medicaid Executive Director at (225) 219-7810 or via e mail at Seth.Gold@la.gov or Brandon Bueche, Medicaid Deputy Director at (225) 384-0460 or via e-mail at Brandon.Bueche@la.gov with any questions about this matter.

View Audit 395718

Finding 1200734 (2025-023)

Material Weakness 2025

State of Louisiana

LA

Questioned Costs Special Tests & Provisions Eligibility

Dear Mr. Waguespack: The Louisiana Department of Health (LDH) acknowledges receipt of correspondence from the Louisiana Legislative Auditor (LLA) dated December 8, 2025, titled Noncompliance with Fee-for-Service Provider Revalidation Requirements. LDH appreciates the opportunity to provide this resp...

Dear Mr. Waguespack: The Louisiana Department of Health (LDH) acknowledges receipt of correspondence from the Louisiana Legislative Auditor (LLA) dated December 8, 2025, titled Noncompliance with Fee-for-Service Provider Revalidation Requirements. LDH appreciates the opportunity to provide this response to your office's findings. Finding: Noncompliance with Fee-for-Service Provider Revalidation Requirements. Recommendation: LDH should adequately monitor the contractor to ensure all providers are revalidated within the required timeframe in accordance with federal regulations. LDH Response: LDH concurs with the LLA's finding that 134 Durable Medical Equipment (DME) providers due for their three (3) year revalidation were not completed within the allowable timeframe and three (3) other providers due for their five (5) year revalidation were not completed timely. Corrective Action: In 2024, LDH identified upcoming revalidations for DME providers, who are required to revalidate every three years. To ensure timely execution, LDH established weekly "Revalidation" meetings with Gainwell Technologies, LDH's contracted vendor, and documented the process. Revalidation notifications were scheduled for distribution at the end of 2024 to give providers adequate time to meet their deadlines. However, Gainwell Technologies failed to complete the necessary system updates to support the revalidation effort. As a result, the notifications were not sent as committed. This failure caused direct delays in distributing revalidation invitation letters and emails. On December 30th, LDH also identified additional overdue revalidations that Gainwell had not addressed and immediately escalated the issue. The revalidation process has since been completed and LDH provided updated records reflecting the date providers completed revalidation after June 30, 2025, or were deactivated. LDH directed Gainwell Technologies to submit a Corrective Action Plan (CAP) outlining how they will prevent a recurrence of this failure. As part of the corrective action plan, Gainwell Technologies created a standard operating procedure (SOP) for the provider enrollment unit to ensure revalidation letters and emails are issued to all providers due for revalidation. The SOP includes quality checks to ensure appropriate tasks are completed by the appropriate team members regarding activities. Additionally, LDH is considering all appropriate options against Gainwell Technologies, including CAPs and potential fines. You may contact Seth Gold, Medicaid Executive Director, at (225) 219-7810 or via e-mail at Seth.Gold@la.gov or Brandon Bueche, Medicaid Deputy Director, at (225) 384-0460 or via e-mail at Brandon.Bueche@.la.gov with any questions about this matter.

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