Corrective Action Plans

Finding 1171367 (2025-002)

Material Weakness 2025

Sheltercare

OR

Reporting Significant Deficiency Matching / Level of Effort / Earmarking

--Corrective Action Plan: As part of the significant turnover within the accounting department in FY24-25, the individual preparing the current year SEFA this year had no previous experience with doing so. Management will take better care to prepare it next year so that it does not require adjustmen...

--Corrective Action Plan: As part of the significant turnover within the accounting department in FY24-25, the individual preparing the current year SEFA this year had no previous experience with doing so. Management will take better care to prepare it next year so that it does not require adjustment, and has prepared a written procedure to follow for preparation of the SEFA. --Person Responsible: Phoebe Benjamin, Associate Finance Director --Date Implemented: 1/1/2026

View Audit 384658

Finding 1171342 (2025-001)

Material Weakness 2025

East Valley Institute of Technology School District No. 401

AZ

Student Financial Aid Reporting Significant Deficiency

2025-001: REPORTING Program: Federal Supplemental Educational Opportunity Grants, Federal Pell Grant Program, Federal Direct Student Loans Cluster Title: Student Financial Assistance Cluster Federal Assistance Listing Numbers: 84.007, 84.063, and 84.268 Federal Agency: U.S. Department of Education T...

2025-001: REPORTING Program: Federal Supplemental Educational Opportunity Grants, Federal Pell Grant Program, Federal Direct Student Loans Cluster Title: Student Financial Assistance Cluster Federal Assistance Listing Numbers: 84.007, 84.063, and 84.268 Federal Agency: U.S. Department of Education Type of Finding: Noncompliance (Other Matter), significant deficiency in internal control Compliance Requirement: L. Reporting Questioned Costs: N/A Repeat Finding: No Condition/Context: Total tuition and fees as reported in the FISAP report was $3,228,909 while the District’s underlying accounting records showed $2,883,823, for a difference of $345,086. Total Federal Pell grant expenditures were reported as $362,929 on the FISAP report while the underlying accounting records and schedule of expenditures of federal awards showed $408,614, for a difference of $45,685. Criteria: The Student Financial Assistance cluster requires that the District submit the Fiscal Operations Report and Application to Participate (FISAP) annually. The amount should agree to the underlying accounting records. Corrective Action: The District will implement procedures to ensure the FISAP revenues and expenditures as posted within the general ledger match with the corresponding application. Planned completion date for corrective action plan: For the period ending June 30, 2026. Name of the contact person responsible for corrective action: Edith Perez, Chief Financial Officer

View Audit 384637

Finding 1171339 (2025-001)

Material Weakness 2025

Senior Citizens Housing Dev CORP of Chicago Dba Senate Apartments

FL

HUD Housing Programs Reporting

Oversight Agency for Audit, Senior Citizens Housing Development Corporation of Chicago respectfully submits the following corrective action plan for the year ended June 30, 2025. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 201, Cor...

Oversight Agency for Audit, Senior Citizens Housing Development Corporation of Chicago respectfully submits the following corrective action plan for the year ended June 30, 2025. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 201, Coral Springs, Florida 33067 Audit period: July 1, 2024 through June 30, 2025 The finding from the June 30, 2025 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. SECTION III – FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT FINDING No. 2025-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Recommendation: Management should implement procedures to ensure the correct amount is deposited into the replacement reserve account each month. Action Taken: We will ensure that RR is fully funded on a monthly basis. New procedures have been implemented to review the deposits each month to ensure proper amounts. If the Oversight Agency for Audit has questions regarding the plan, please call Irene Phillips at 954-835-9200. Sincerely yours, Irene Phillips, CFO Irene Phillips CFO

View Audit 384633

Finding 1171332 (2025-001)

Material Weakness 2025

Mental Health Mental Retardation Authority of Brazos Valley

TX

Reporting Internal Control / Segregation of Duties

Audit Finding 2025-1: During the audit it was noted that certain general ledger accounts were not analyzed and reconciled on a timely basis. Management Response: The Center has continued to experience turnover in key accounting positions. New programs with new software updates have required addition...

Audit Finding 2025-1: During the audit it was noted that certain general ledger accounts were not analyzed and reconciled on a timely basis. Management Response: The Center has continued to experience turnover in key accounting positions. New programs with new software updates have required additional staff training. The Medicaid Eligibility Renewal process by the State now has Renewals required every 12 months while prior to covid the Medicaid Program Renewals were required every 24 months. This has caused serious issues with the reconciliation process for Several of our Medicare, Medicaid, HCS and TXHMLV Accounts. We booked conservatively what we thought we could anticipate for Revenues assuming that we would begin receiving Reinstatement of Benefits at a somewhat regular Renewal Rate. We are allowed to back bill at least 90 days once approval is given. The Renewal Process is taking way longer than it used to, significantly complicating the reconciliation process, especially at year end with the need for separation of Revenue by Fiscal Years (matching process of Revenue with the same period Expenditures) Management will continue to train existing employees on significant accounting issues and IDD Management has recently begun using the Medicaid Lost Report to better anticipate lapses in upcoming Renewals of Consumers. We will also begin closing out our billings for the prior Fiscal Year earlier than we currently do. Any prior billings (Rebills) occurring after this established cutoff date (Medicare/Medicaid) will be reflected in the current year’s revenue and receivable balances. Name and Title of contact person responsible for corrective action: Dan Monson, CFO, 1504 S Texas Avenue. Bryan, TX 77802, 979-361-9802, Employer Identification Number: 74-1793265

View Audit 384621

Finding 1171321 (2025-001)

Material Weakness 2025

Craven County

NC

Eligibility Internal Control / Segregation of Duties Cash Management

Board of Commissioners Administration Building Jason R. Jones, Chairman 406 Craven Street Dennis Bucher, Vice Chairman New Bern, NC 28560 Thomas F. Mark George S. Liner Fax 252-637-0526 Theron L. McCabe jveit@cravencountync.gov Ettienne “E.T.” Mitchell Beatrice R. Smith Administrative Staff Jack B. ...

Board of Commissioners Administration Building Jason R. Jones, Chairman 406 Craven Street Dennis Bucher, Vice Chairman New Bern, NC 28560 Thomas F. Mark George S. Liner Fax 252-637-0526 Theron L. McCabe jveit@cravencountync.gov Ettienne “E.T.” Mitchell Beatrice R. Smith Administrative Staff Jack B. Veit III, County Manager Commissioners 252-636-6601 Gene Hodges, Assistant County Manager Manager 252-636-6600 Nan Holton, Clerk to the Board Finance 252-636-6603 Amber M. Parker, Human Resources Director Human Resources 252-636-6602 Craig Warren, Finance Director None Reported. Finding 2025-001 Inaccurate Information Entry Name of contact person: Corrective Action: Proposed completion date: April Rollins, Medicaid Program Manager Policy refresher training will be held by December 31, 2025. Refresher training for staff that files should be reviewed internally to ensure proper documentation is in place for eligibility determination. Workers will receive refresher training what files should contain and the importance of complete and accurate record keeping. Staff will have refresher training that all files include online verifications; documented resources of income and those amounts agree to information in NC FAST. The results found or documentation made in case notes should clearly indicate what actions were performed and the results of those actions. Second party reviews of at least or in excess of the state’s mandated 98 cases will be conducted quarterly. The second party review threshold for staff is 90%. Any errors will be discussed one on one by the supervisor with the employee to ensure the employee has a full understanding of policies and procedures. Supervisors will review error trends every quarter to determine if further group training is needed. The Learning Gateway trainings have also been completed in the past 180 days for all Medicaid staff will further assist with retaining staff. 12/31/2025 Corrective Action Plan For the Year Ended June 30, 2025 Section II - Financial Statement Findings Section III - Federal Award Findings and Questioned Costs 188

View Audit 384595

Finding 1171163 (2025-002)

Material Weakness 2025

Plainfield Board of Education

NJ

Reporting § 200.302

Management has reviewed this finding and has indicated a corrective action plan will be developed to address this finding and recommendation.

View Audit 384568

Finding 1171157 (2025-002)

Material Weakness 2025

Arizona Christian University

AZ

Student Financial Aid Reporting Significant Deficiency

Student Financial Aid Cluster – Assistance Listing No. Various Recommendation: We recommend that the University implement a formal review process as it relates to withdrawn students to ensure R2T4 calculations are being performed accurately and timely. Explanation of disagreement with audit finding:...

Student Financial Aid Cluster – Assistance Listing No. Various Recommendation: We recommend that the University implement a formal review process as it relates to withdrawn students to ensure R2T4 calculations are being performed accurately and timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The withdrawal dates applied in the Return to Title IV (R2T4) calculations were based on the dates students were administratively withdrawn by the Office of the Registrar. Upon identification of the audit finding, the Office of Financial Aid conducted a comprehensive review of the affected R2T4 calculations and made the necessary corrections. Any balances resulting from these errors were subsequently written off. Additionally, the Director of Financial Aid completed a full file review for the applicable award year to assess the accurate inclusion of scheduled break days. During this review, two additional students were identified whose R2T4 calculations did not include the appropriate number of break days. The calculations for these students were corrected, and the resulting balances were written off. No further errors were identified. As part of the corrective action, the Office of Financial Aid has hired an additional Financial Aid Advisor dedicated to the review and completion of R2T4 calculations. Furthermore, the Director of Financial Aid has implemented a secondary review process for all completed R2T4 calculations to ensure accuracy and compliance. The Office of Financial Aid has also reviewed the Financial Aid Handbook and applicable Code of Federal Regulations (CFR) related to R2T4 calculations to reinforce adherence to regulatory requirements. Name(s) of the contact person(s) responsible for corrective action: Angel Faast and Laura Silva Planned completion date for corrective action plan: 12/17/2025

View Audit 384567

Finding 1171152 (2025-001)

Material Weakness 2025

Arizona Christian University

AZ

Student Financial Aid Reporting Significant Deficiency

Student Financial Aid Cluster – Assistance Listing No. Various Recommendation: We recommend the University review its reporting procedures to ensure that students’ statuses are accurately and timely reported to NSLDS as required by regulations. Explanation of disagreement with audit finding: There i...

Student Financial Aid Cluster – Assistance Listing No. Various Recommendation: We recommend the University review its reporting procedures to ensure that students’ statuses are accurately and timely reported to NSLDS as required by regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: : In November 2024, the Associate Director of Institutional Research (ADIR) and Associate VP of Institutional Effectiveness (AVPIE) created a tool for scheduling, tracking, and reviewing the status and completion of National Student Clearinghouse submissions. The audit finding occurred before this tool was in place, and since its implementation, late reporting has been reduced, and the corrective action plan has been successful Name(s) of the contact person(s) responsible for corrective action: Jeff Phillips and Eric Tompkins Planned completion date for corrective action plan: November 1, 2024

View Audit 384567

Finding 1171132 (2025-001)

Material Weakness 2025

Pacific House, Inc.

CT

Subrecipient Monitoring Reporting Significant Deficiency

Pacific House and Subsidiaries has transitioned to a new CPA firm and is working closely with them to ensure the Data Collection Form is timely submitted for the fiscal year ended June 30, 2025 and in future.

View Audit 384518

Finding 1171110 (2025-001)

Material Weakness 2025

Missouri State University

MO

Student Financial Aid Reporting

Views of Responsible Officials and Planned Corrective Actions -The University’s Office of Student Financial Aid agrees with the recommendation and will enact the following procedure changes: 1. Formal Interdepartmental Oversight • Establish a documented coordination process between the Office of the...

Views of Responsible Officials and Planned Corrective Actions -The University’s Office of Student Financial Aid agrees with the recommendation and will enact the following procedure changes: 1. Formal Interdepartmental Oversight • Establish a documented coordination process between the Office of the Registrar (OOR) and the Office of Student Financial Aid (OSFA) to jointly oversee enrollment reporting for Title IV purposes. • Define clear roles and responsibilities for monitoring, review, and escalation of enrollment reporting issues. 2. Transmission Monitoring and Reconciliation • Implement a recurring reconciliation process to verify that enrollment status changes submitted to NSC are successfully transmitted to NSLDS. a. OSFA designee (Associate Director) will review sample populations each reporting cycle to ensure data transfer to NSLDS. • Develop exception process to resolve delayed, rejected, or missing enrollment updates and ensure timely resolution. a. OSFA designee will coordinate with OOR designee (Associate Registrar) to alert of potential issues and work to resolve. 3. Issue Escalation and Resolution Protocol • Establish a formal escalation process with NSC for unresolved transmission issues, including defined timelines for follow-up and resolution. • Maintain documentation of identified issues, corrective actions taken, and final resolution. 4. Ongoing Monitoring • Incorporate enrollment reporting compliance into routine Title IV compliance monitoring activities. • Conduct periodic internal reviews to ensure controls remain effective and reporting continues to meet federal timeliness and accuracy requirements. Implementation of the above listed procedure changes will take place immediately with a completion date no later than June 30, 2026. Responsible Offices and University Officials • Office of the Registrar a. Registrar b. Associate Registrar • Office of Student Financial Aid a. Director of Financial Aid b. Associate Director for Financial Aid Compliance

View Audit 384515

Finding 1171099 (2025-002)

Material Weakness 2025

Northeast Ohio Medical University

OH

Student Financial Aid Subrecipient Monitoring Reporting

Finding Number: 2025-002 Anticipated Completion Date: 10/07/2025 Responsible Contact Person: Katherine Miranda, University Registrar Kelly Burt, Assistant Registrar Records Management and Reporting Michele Bergman, Assistant Registrar, Records Management and Reporting Planned Corrective Action: The ...

Finding Number: 2025-002 Anticipated Completion Date: 10/07/2025 Responsible Contact Person: Katherine Miranda, University Registrar Kelly Burt, Assistant Registrar Records Management and Reporting Michele Bergman, Assistant Registrar, Records Management and Reporting Planned Corrective Action: The Offices of the Registrar and Admission Operations reviewed the case, reviewed the proper student record protocol, and added a reporting checkpoint to review for dually enrolled students before submitting enrollment reports to the National Student Clearinghouse (NSC). Once NSLDS is updated with NSC data, the Office of the Registrar will work with Office of Financial Aid to confirm NSLDS is accurate for the dually enrolled students.

View Audit 384492

Finding 1171045 (2025-001)

Material Weakness 2025

Karnes County

TX

Reporting Internal Control / Segregation of Duties

Finding Number: 2025-001 Federal Program: Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) ALN 21.027 Finding Type: Material Noncompliance with Reporting Requirements The entity acknowledges that the CSLFRF report for the period ended March 31, 2025 inaccurately reported that all expenditu...

Finding Number: 2025-001 Federal Program: Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) ALN 21.027 Finding Type: Material Noncompliance with Reporting Requirements The entity acknowledges that the CSLFRF report for the period ended March 31, 2025 inaccurately reported that all expenditures had been completed when a portion of the award remained unspent. Management has evaluated the circumstances and determined that the error resulted from a misunderstanding of report finalization requirements. To address this issue, management will implement enhanced review and approval procedures over grant expenditure reporting to ensure that cumulative expenditures and expenditure status are accurately reported prior to submission and finalization. These procedures will include reconciliation of reported amounts to the general ledger and interagency review to confirm that all funds have been expended before designating any report as final. Responsible Official: Treasurer Anticipated Completion Date: Implemented immediately and applicable to all future expenditure reporting.

View Audit 384451

Finding 1171041 (2025-001)

Material Weakness 2025

Louisville Metro Housing Authority

KY

HUD Housing Programs Subrecipient Monitoring Cash Management

Finding Reference: 2025-001 Description of Finding: HUD regulations require certifications to be completed and entered timely to ensure accurate calculation of Housing Assistance Payments (HAP), Total Tenant Payment (TTP) and utility reimbursements. Per 24 CFR section 982.516, the Authority must ree...

Finding Reference: 2025-001 Description of Finding: HUD regulations require certifications to be completed and entered timely to ensure accurate calculation of Housing Assistance Payments (HAP), Total Tenant Payment (TTP) and utility reimbursements. Per 24 CFR section 982.516, the Authority must reexamine family income and composition at least once every two years and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification. Of the 60 Moving to Work files tested, the following items were noted: • 40 instances of certifications not completed timely • 6 instances where the file did not contain income support • 3 instances where housing quality standards inspections were not completed within the last 2 years • 1 instance in which a rent comparison was not completed for a new move in Statement of Concurrence or Nonconcurrence: Louisville Metro Housing Authority agrees with Cherry Bekaert in reference to audit finding 2025-001. Corrective Action: LMHA continues to work through issues around the proper and timely processing of program certifications to support accurate Housing Assistance Payments, Total Tenant Payments and utility reimbursements. Currently, recertifications are processed on a biennial basis schedule, through a three-tiered system outlined in our updated MTW plan. This will address timeliness of recertification while also ensuring compliance and review of supporting documentation. Please note the following rules tied to LMHA’s three-tiered recertification system: 1) When the family is zero income, they will go to an annual recertification. 2) When family is working, (enrolling in KTAP (Kentucky Transitional Assistance Program), receiving Child Support, and other similar sources of income) they will go to a biennial recertification. 3) When a family has fixed income, (receiving Social Security, Supplemental Security Income, and/or Pension payments), they will go to a triennial recertification. The HCV Team is also working with Yardi (ERP system) to maximize the reporting and monitoring of the recertification schedule. The manager initiates the tracking for needed processing and possible termination of participants. With the three-tiered system, staff will be able to review all tenant information closely during recertifications to ensure proper housing assistance payments. Additionally, to improve sufficient controls and internal monitoring, the HCV Team is partnering with the Compliance Team to review tenant files for errors and improper supporting documentation.

View Audit 384423

Finding 1170897 (2025-002)

Material Weakness 2025

Town of Brunswick Maine

ME

Reporting

Management Response/Corrective Action Plan: The Finance Office has a monthly task list to ensure reports and other required tasks are completed in a timely manner. Quarterly reports for the Apprenticeship Program grant have been added for future quarters. This practice will be followed for future gr...

Management Response/Corrective Action Plan: The Finance Office has a monthly task list to ensure reports and other required tasks are completed in a timely manner. Quarterly reports for the Apprenticeship Program grant have been added for future quarters. This practice will be followed for future grants.

View Audit 384187

Finding 1170880 (2025-001)

Material Weakness 2025

Hood College of Frederick, Maryland and Affiliates

MD

Matching / Level of Effort / Earmarking Student Financial Aid Allowable Costs / Cost Principles § 200.303

Corrective Action Plan Finding Number: 2025-001 – Enrollment Reporting Controls – Student Financial Aid Special Test Finding: There is no control in place by the College to review information submitted to NSLDS for student enrollment status changes. Corrective Actions Planned Given the size of the F...

Corrective Action Plan Finding Number: 2025-001 – Enrollment Reporting Controls – Student Financial Aid Special Test Finding: There is no control in place by the College to review information submitted to NSLDS for student enrollment status changes. Corrective Actions Planned Given the size of the Financial Aid Office, the College will implement compensating internal controls to ensure accurate and timely enrollment reporting while maintaining operational efficiency. Effective immediately, the College will implement the following controls: 1. Continued Use of the National Student Clearinghouse (NSC) The College will continue to rely on the National Student Clearinghouse as its third-party servicer for enrollment status reporting to NSLDS. 2. Independent Post-Submission Review On a monthly basis, the Office of Financial Aid will review NSC enrollment reporting confirmation files to verify that enrollment status changes were submitted to NSLDS accurately and within the required 60-day timeframe. This review will be performed by an individual other than the primary preparer, where feasible, or through supervisory review when staffing is limited. 3. Documentation and Retention Evidence of review, including reviewer initials and date, will be retained. A simple enrollment reporting review log will be maintained to document compliance. 4. Ongoing Oversight The Director of Financial Aid will conduct periodic spot checks to confirm controls are operating as intended. Responsible Official: De Rodrick Jonkins, Director of Financial Aid Anticipated Completion Date: February 1, 2026 Additional Context The Director of Financial Aid assumed the role effective April 1, 2025, after prior corrective actions had been initiated. While formal independent review controls were not documented during the audit period, there were no identified instances of late enrollment reporting or inaccurate enrollment status submissions to NSLDS. The corrective actions above are intended to formalize controls and ensure sustained compliance with federal requirements.

View Audit 384186

Finding 1170872 (2025-002)

Material Weakness 2025

Bucks County Community College

PA

Subrecipient Monitoring Material Weakness Reporting

Finding 2025-002: Reporting (Material Weakness, repeat finding) U.S. Treasury Department – COVID-19 Coronavirus State and Local Fiscal Recovery Funds (ALN 21.027) Statement of Condition: During testing one of the College’s quarterly ARPA expenditure reports was submitted to Bucks County after the de...

Finding 2025-002: Reporting (Material Weakness, repeat finding) U.S. Treasury Department – COVID-19 Coronavirus State and Local Fiscal Recovery Funds (ALN 21.027) Statement of Condition: During testing one of the College’s quarterly ARPA expenditure reports was submitted to Bucks County after the deadline per the grant agreements. The report tested was submitted 20 days late. Criteria: The College is a subrecipient of ARPA funding from Bucks County. The grant agreements state the College must submit quarterly expenditure reports to the County 11 days after the end of the quarter (calendar year). Cause: The College did not have adequate controls in place to ensure the timely filing of expenditure reports. Effect: Failure to comply with ARPA reporting requirements could jeopardize future federal funding. Recommendation: We recommend that the College reconcile, review, and submit reports in a timely manner based on grant agreements. Questioned Costs: This finding does not result in questioned costs. View of responsible officials and planned corrective actions: Management agrees with the finding. The College has strengthened the process to ensure the timely and accurate reconciliation, review, and submission of expenditure reports consistent with the requirements of all grant agreements. The College’s Grant Office has created a Grant Project Management Platform to track compliance requirements for all grants including timely invoicing and reporting. This platform provides a dashboard and reminder functions for deadline monitoring. The Grants Manager participates in weekly meetings with the Executive Director, Research, Assessment, Data Analytics, & Reporting, to review deadlines and facilitate the timely and accurate completion of all tasks related to grant compliance. Name(s) of Contact Person(s) Responsible for Corrective Action: Elana Felberg, Grants Manager Anticipated Completion Date: January 31, 2026

View Audit 384165

Finding 1170869 (2025-001)

Material Weakness 2025

Junior College District of East Central Missouri

MO

Student Financial Aid Reporting Significant Deficiency

Janaury 16, 2026 U.S. DEPARTMENT OF EDUCATION East Central College respectfully submits the following corrective action plan for the year ended June 30, 2025. Contact information for the individual responsible for the corrective action: Mr. Chris Hoelzer, Vice President of Finance & Administration E...

Janaury 16, 2026 U.S. DEPARTMENT OF EDUCATION East Central College respectfully submits the following corrective action plan for the year ended June 30, 2025. Contact information for the individual responsible for the corrective action: Mr. Chris Hoelzer, Vice President of Finance & Administration East Central College 1964 Prairie Dell Road Union, MO 63084 Independent public accounting firm: KPM CPAs, PC, 1445 E Republic Rd, Springfield, Missouri 65804 Audit Period: Year Ended June 30, 2025 The finding from the June 30, 2025 audit of the financial statements is below. The finding is numbered with the number assigned in the schedule. FINDING - MAJOR FEDERAL AWARD PROGRAM AUDIT 2025-001 Special Test and Provisions - Return of Title IV Funds Recommendation: We recommend the College implement procedures to strictly comply with the requirements of 34 CFR §668.22 as it relates to calculations of return of Title IV funds. Corrective Action Taken: The college conducted a comprehensive review of all student accounts potentially impacted by the incorrect academic calendar dates and identified 52 students whose Return of Title IV (R2T4) calculations required review. As a result of this reveiw, the Financial Aid Office determined that 41 students required a return of Title IV funds to the U.S. Department of Education. The total amount of funding returned was $12,590. The Financial Aid Office corrected the R2T4 calculations, updated the academic calendar dates in the financial aid system, and processed the required returns of Title IV funds. To prevent recurrence, the College has implemented internal procedures to ensure academic calendar dates are reviewed and verified in the financial aid system before performing R2T4 calculations for each award year. Anticipated Completion Date: Fall semester 2025 and ongoing. Sincerely, Chris Hoelzer Vice President of Finance & Administration

View Audit 384161

Finding 1170833 (2025-001)

Material Weakness 2025

Laceleaf Corporation

OR

Eligibility HUD Housing Programs Reporting

Management will monitor tenant recertifications to ensure that they are being completed in a timely manner. The following measures will be implemented: • Centralized tracking by the Housing Manager on a monthly basis to monitor the recertification timeline for each unit. This will include tracking t...

Management will monitor tenant recertifications to ensure that they are being completed in a timely manner. The following measures will be implemented: • Centralized tracking by the Housing Manager on a monthly basis to monitor the recertification timeline for each unit. This will include tracking the 120, 90, 60, and 30 day reminders to be sent to tenants in advance of the recertification effective dates. • Automated reminders will be provided on a monthly basis by the third party vendor that processes HAP billings to the Housing Manager and site managers, in order to ensure that they are aware of any recertification deadlines. • Additional training will be provided for all staff members involved in the recertification process.

View Audit 384123

Finding 1170823 (2025-001)

Material Weakness 2025

The Varnett Schools, INC Dba the Varnett Public School

TX

Internal Control / Segregation of Duties Cash Management Reporting

Finding 2025-001 Significant Deficiency in Internal Control over Compliance - Reporting AL# 10.553 & 10.555 – Child Nutrition Cluster Corrective Action Plan Employee re-alignment and training was initiated beginning in August 2025, as well as revision to the review process for meal counts to include...

Finding 2025-001 Significant Deficiency in Internal Control over Compliance - Reporting AL# 10.553 & 10.555 – Child Nutrition Cluster Corrective Action Plan Employee re-alignment and training was initiated beginning in August 2025, as well as revision to the review process for meal counts to include a second review prior to submission. In addition, the new system was evaluated for proper configuration to mitigate further issues. Person(s) Responsible M. Thorne, Operations Coordinator Anticipated Completion Date Corrective actions were substantially completed by October 2025.

View Audit 384090

Finding 1170813 (2025-005)

Material Weakness 2025

North Daviess R-III School District

MO

Reporting Internal Control / Segregation of Duties Subrecipient Monitoring § 200.516

Monitoring over federal awards – The District has corrected the reporting error for ESSER fund expenditures and is increasing its monitoring responsibilities to meet the needs of federal programs in the future. The District will be developing controls over reporting of federal funds to ensure these ...

Monitoring over federal awards – The District has corrected the reporting error for ESSER fund expenditures and is increasing its monitoring responsibilities to meet the needs of federal programs in the future. The District will be developing controls over reporting of federal funds to ensure these funds reconcile to the general ledger going forward.

View Audit 384070

Finding 1170812 (2025-004)

Material Weakness 2025

North Daviess R-III School District

MO

Reporting Subrecipient Monitoring Allowable Costs / Cost Principles

Reporting - Federal Awards and Expenditures - ESSER – The District has corrected the reporting error for ESSER fund expenditures and is increasing its monitoring responsibilities to meet the needs of federal programs in the future. The District will be developing controls over reporting of federal f...

Reporting - Federal Awards and Expenditures - ESSER – The District has corrected the reporting error for ESSER fund expenditures and is increasing its monitoring responsibilities to meet the needs of federal programs in the future. The District will be developing controls over reporting of federal funds to ensure these funds reconcile to the general ledger going forward.

View Audit 384070

Finding 1170762 (2025-001)

Material Weakness 2025

Metropolitan Community College

MO

Student Financial Aid Special Tests & Provisions Subrecipient Monitoring

Enrollment information was not submitted within the required timeframe by the College. Personnel Responsible for Corrective Action: Dena Norris, Associate Vice Chancellor of Student Financial Services, and Tara Dettmer, Director of Financial Aid – Fiscal Operations Anticipated Completion Date: Corre...

Enrollment information was not submitted within the required timeframe by the College. Personnel Responsible for Corrective Action: Dena Norris, Associate Vice Chancellor of Student Financial Services, and Tara Dettmer, Director of Financial Aid – Fiscal Operations Anticipated Completion Date: Corrective action plan will be implemented by June 30, 2026. Views of Responsible Officials and Planned Corrective Action Plan: Despite best efforts by the College to correct the errors in enrollment reporting, the College experienced turnover among staff, and as a result, was unable to shift staffing resources or quickly hire replacement staff to correct the finding. Metropolitan Community College (MCC) is in the process of hiring additional staff dedicated to enrollment and compliance reporting. MCC will make a random selection of 10-15 students each month to verify data was correctly transmitted to National Student Clearinghouse (NSC). A secondary check of these students will be done to ensure the data is also transmitted to the National Student Loan Data System (NSLDS). MCC will also ensure error reports and other data issues are resolved in a timely manner to ensure reporting of students is completed within the regulatory timeframe. Due to the implementation of a new Enterprise Resource Planning system MCC is also validating and correcting any submission errors.

View Audit 383985

Finding 1170757 (2025-001)

Material Weakness 2025

Carl Sandburg College-Community College District 518

IL

Student Financial Aid Reporting

Sandburg reviewed the audit finding regarding NSLDS reporting. We acknowledge the finding and implemented the following corrective action plan: 1. Added an additional NSLDS report following final grades to ensure we are picking up unofficial withdrawals. 2. Updated our reporting schedule with Cleari...

Sandburg reviewed the audit finding regarding NSLDS reporting. We acknowledge the finding and implemented the following corrective action plan: 1. Added an additional NSLDS report following final grades to ensure we are picking up unofficial withdrawals. 2. Updated our reporting schedule with Clearinghouse/NSLDS. 3. Updated written procedures to include a quality control check before the NLSDS/Clearinghouse file is sent. 4. Added an end-of-term quality control spot check to review that unofficial withdrawal submissions went through. 5. Updated written procedures for NSLDS reporting. Procedures are reviewed as regulations change, as our reporting software evolves, and during staff transitions to ensure compliance. 6. Training completed by the Dean of Enrollment Management, Director of Advising, Registrar, Associate Director of Advising & Transfer Coordination, Director of Financial Aid, Coordinator of Financial Aid, Veterans & Military Services. Procedures are reviewed as regulations change and during staff transitions to ensure compliance. Person(s) Responsible: Angela Snow; Director of Advising, Registrar Timing for Implementation: These procedures were implemented by December 2025.

View Audit 383954

Finding 1170658 (2025-003)

Material Weakness 2025

Detroit Housing Commission

MI

HUD Housing Programs Subrecipient Monitoring Material Weakness

Condition: The Commission did not submit the required financial and performance reports promptly. Planned Corrective Action: The Capital Team Project Manager continues to reconcile HUD’s EPIC and ELOCC systems with Yardi monthly to ensure timely filing of capital projects' closeouts. This tracking c...

Condition: The Commission did not submit the required financial and performance reports promptly. Planned Corrective Action: The Capital Team Project Manager continues to reconcile HUD’s EPIC and ELOCC systems with Yardi monthly to ensure timely filing of capital projects' closeouts. This tracking critical spreadsheet, created by the Lead Performance Officer, will trigger key reporting dates for the DHC Capital Fund Program to remain in compliance with HUD reporting deadlines. At a minimum, monthly, this critical spreadsheet is distributed to the Supervisor of Capital and the Lead Performance Officer to ensure compliance. However, this was on the radar and continues the process of cleaning older items for corporate hygiene. As of December 2025, this was closed out and approved in EPIC by HUD. Contact person responsible for corrective action: Michael Edwards, Capital Asset & Skilled Trades Supervisor Anticipated Completion Date: 12/31/2025

View Audit 383877

Finding 1170657 (2025-002)

Material Weakness 2025

Detroit Housing Commission

MI

Subrecipient Monitoring HUD Housing Programs Reporting

Condition: The Commission did not complete fiscal year 2025 recertifications. Planned Corrective Action: Staff have been retrained on the compliance requirements under the standards of the HCV Program through the oversight of the Rental Assistance Department Manager and Continued Occupancy Superviso...

Condition: The Commission did not complete fiscal year 2025 recertifications. Planned Corrective Action: Staff have been retrained on the compliance requirements under the standards of the HCV Program through the oversight of the Rental Assistance Department Manager and Continued Occupancy Supervisor. The Department Manager and Supervisor continue to utilize all Yardi monitoring reports to ensure the Department is operating in accordance with industry standards. Reporting is be done and monitored monthly to meet set goals. Weekly, Department Manager has review the certification pipeline to ensure compliance and follow up with the Housing Specialist to ensure compliance and meeting set weekly and monthly goals and metrics. We continue to work in accordance with HUD rules and regulations where Annual Recertification processes are concerned. Per HUD communication provided to us, as of June 30, 2025, HCV is 100% compliant with HUD recertification requirements. Contact person responsible for corrective action: Felicia Burris, HCV Program Manager Anticipated Completion Date: 7/1/2025

View Audit 383877

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