Corrective Action Plans

Finding 1240164 (2025-002)

Material Weakness 2025

Western Pacific Regional Fishery Management Council

HI

Reporting § 200.302

The Council will strengthen its internal controls to ensure expenditures are recorded timely and accurately in the general ledger and properly classified to the applicable award, budget category, and reporting period in accordance with 2 CFR 200.302(b)(2). The Fiscal Administrator is responsible for...

The Council will strengthen its internal controls to ensure expenditures are recorded timely and accurately in the general ledger and properly classified to the applicable award, budget category, and reporting period in accordance with 2 CFR 200.302(b)(2). The Fiscal Administrator is responsible for recording expenditures and preparing timely and accurate Federal Financial Reports (SF-425). Federal Financial Report due dates are maintained on the Council Calendar, with automatic notifications issued before each due date to the Fiscal Administrator, with a copy to the Administrative Officer. At the end of each six-month Federal Financial Reporting period, the Fiscal Administrator will review the general ledger and Profit and Loss reports to identify expenditures incurred during the reporting period and verify that expenditures are recorded in the appropriate accounting period and properly classified to the applicable award and account. The Fiscal Administrator will coordinate with appropriate program staff to resolve discrepancies and make necessary adjusting journal entries before the Federal Financial Report is finalized and submitted. Adjusting journal entries will be supported by appropriate documentation and reviewed by the appropriate program staff and/or Administrative Officer, as applicable. After a Federal Financial Report has been submitted, subsequent adjustments to the reported period will require documented review and approval and an assessment of whether a corrected Federal Financial Report is necessary. Prior to submission of each SF-425, the Fiscal Administrator will provide the Administrative Officer with the draft Federal Financial Report and supporting Profit and Loss/general ledger reports. The Administrative Officer will review and verify that reported expenditures and Federal revenue received agree with the Council's accounting records and supporting documentation. Any identified discrepancies will be resolved before submission. Documentation supporting the review, including the general ledger/Profit and Loss reports, Federal Financial Report, and applicable adjusting journal entries, will be retained in accordance with the Council's record retention requirements. These controls are intended to ensure expenditures are recorded in the proper reporting period, accurately classified, reconciled to the general ledger, and appropriately reflected in Federal Financial Reports prior to submission.

View Audit 414735

Finding 1240162 (2025-001)

Material Weakness 2025

Jewish Home Lifecare, Manhattan

NY

Allowable Costs / Cost Principles Reporting § 200.430

The findings from the December 31, 2025, schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the number assigned in the schedule. FINDINGS – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Finding 2025-001 – Allowable Costs/Cost Principles – U.S. De...

The findings from the December 31, 2025, schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the number assigned in the schedule. FINDINGS – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Finding 2025-001 – Allowable Costs/Cost Principles – U.S. Department of Labor (Assistance Listing Number: WIOA Cluster - 17.258, 17.259, 17.278) Passed through New York City Department of Youth and Community Development (Contract# 9060060), Workforce Development Corporation (Contract# 2025WDC005) – (Material Weakness) Material Weakness Recommendation We recommend that management implement policies, controls, and procedures to ensure that time and effort is recorded based on actual effort and approval by appropriate individuals is documented at least monthly to comply with applicable cost principles. Action Taken The New Jewish Home has implemented policies and procedures to ensure that employee time and effort charged to federally funded and other restricted programs is supported by contemporaneous documentation reflecting the actual effort performed. Employee time is recorded through the organization’s established timekeeping process and is reviewed and approved by the employee’s immediate supervisor on a payroll-period basis. This control is performed every pay period and therefore occurs more frequently than the minimum monthly review and approval standard referenced in the finding. Supervisory approval is intended to provide reasonable assurance that recorded time and effort is accurate, supported, and consistent with the employee’s actual work performed and the applicable funding requirements. Management will continue to monitor compliance with these procedures and will reinforce the requirement that time and effort records be accurately maintained and appropriately approved in accordance with organizational policies and applicable federal cost principles. The New Jewish Home will also retain the applicable timekeeping and approval documentation as evidence of the control’s operation. Completion Date: October 5, 2026

View Audit 414730

Finding 1240159 (2025-002)

Material Weakness 2025

AASE HAUGEN HOMES INC

IA

Reporting

Nonmaterial Noncompliance: See Finding 2025-002 Recommendation: We recommend the Organization document the cause of the late filing and retain evidence that the form was submitted. Action Taken: We agree with the auditor and will ensure that timely filed reports are made. Anticipated Date of Complet...

Nonmaterial Noncompliance: See Finding 2025-002 Recommendation: We recommend the Organization document the cause of the late filing and retain evidence that the form was submitted. Action Taken: We agree with the auditor and will ensure that timely filed reports are made. Anticipated Date of Completion: December 31, 2026

View Audit 414722

Finding 1240157 (2025-005)

Material Weakness 2025

Eastern Montana Community Mental Health Center

MT

Reporting § 200.512

Finding 2025-005: Data Collection Form compliance Corrective Action Management agrees with the recommendation. Management recognizes the importance of timely submission of the Data Collection Form and reporting to the Federal Audit Clearinghouse. The Center will establish a formal audit completion t...

Finding 2025-005: Data Collection Form compliance Corrective Action Management agrees with the recommendation. Management recognizes the importance of timely submission of the Data Collection Form and reporting to the Federal Audit Clearinghouse. The Center will establish a formal audit completion timeline that includes internal deadlines for financial statement preparation, audit fieldwork, report review, and Federal Audit Clearinghouse submission. Progress toward audit completion will be reviewed periodically by management to help ensure future submissions are completed within the timeframe required by 2 CFR 200.512. Implementation Timeline Procedures will be implemented beginning with the fiscal year ending June 30, 2026, and reviewed periodically as necessary. Responsible Parties Chief Financial Officer and Finance Department Management.

View Audit 414720

Finding 1240152 (2025-003)

Material Weakness 2025

Eastern Montana Community Mental Health Center

MT

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Reporting

Finding 2025-003: Internal Controls Over Expenditures, Financial Reporting, and Program Income Corrective Action Management agrees with the recommendation. The Center will strengthen compliance monitoring procedures by requiring documented evidence of review for expenditures, payroll, federal financ...

Finding 2025-003: Internal Controls Over Expenditures, Financial Reporting, and Program Income Corrective Action Management agrees with the recommendation. The Center will strengthen compliance monitoring procedures by requiring documented evidence of review for expenditures, payroll, federal financial reports, and other compliance activities. Written procedures will be developed to define review responsibilities and documentation requirements. The Center will establish a formal process to track, reconcile, and monitor program income and will provide training to personnel involved in federal award administration. Periodic internal compliance reviews will be performed to verify controls are functioning effectively. Implementation Timeline Policies and review procedures to be implemented during fiscal year 2026 with quarterly monitoring thereafter. Responsible Parties Chief Financial Officer, Compliance Officer, and Program Management.

View Audit 414720

Finding 1240147 (2025-011)

Material Weakness 2025

Alaska Pacific University

AK

Reporting Special Tests & Provisions Student Financial Aid

Finding 2025-11 Special Tests and Provisions: NSLDS Reporting – Noncompliance and Significant Deficiency in Internal Control Over Compliance; Planned Corrective Action Plan: APU will strengthen procedures for identifying and reporting enrollment status changes, including degree conferrals occurring ...

Finding 2025-11 Special Tests and Provisions: NSLDS Reporting – Noncompliance and Significant Deficiency in Internal Control Over Compliance; Planned Corrective Action Plan: APU will strengthen procedures for identifying and reporting enrollment status changes, including degree conferrals occurring outside the normal graduation cycle. Appropriate personnel will periodically review enrollment and graduation activity to identify changes requiring submission to the National Student Clearinghouse and NSLDS, and documentation of the review and reporting will be retained.; Anticipated Completion Date: July 1, 2027

View Audit 414713

Finding 1240091 (2025-003)

Material Weakness 2025

Cornerstone Rescue Mission

SD

Internal Control / Segregation of Duties Material Weakness Reporting § 200.303 § 200.328 § 200.329

Federal Agency Name: Department of Veterans Affairs Assistance Listing Number: 64.003 Program Name: VA Supportive Services for Veteran Families Program Compliance Requirement: Reporting Finding Summary: No review and approval processes were in place over 2 quarterly progress reports. Corrective Acti...

Federal Agency Name: Department of Veterans Affairs Assistance Listing Number: 64.003 Program Name: VA Supportive Services for Veteran Families Program Compliance Requirement: Reporting Finding Summary: No review and approval processes were in place over 2 quarterly progress reports. Corrective Action Plan: Management has implemented procedures and control processes to incorporate an independent review and approval over quarterly reporting effective for the quarterly report ending June 30, 2025. Responsible Individuals: Teena Conrad, SSVF Program Manager, Lysa Allison, Executive Director and Christina Thoelke, Business Manager Anticipated Completion Date: June 2025

View Audit 414712

Finding 1240058 (2025-006)

Material Weakness 2025

COUNTY OF MCCURTAIN

OK

Procurement, Suspension & Debarment Reporting Allowable Costs / Cost Principles § 200.303 § 200.502 § 200.508 § 200.510

The current Board of County Commissioners acknowledges the finding. The Board is committed to improving the identification, tracking, and reporting of federal awards. County officials will continue working with auditors and department heads to strengthen reconciliation and review procedures and ensu...

The current Board of County Commissioners acknowledges the finding. The Board is committed to improving the identification, tracking, and reporting of federal awards. County officials will continue working with auditors and department heads to strengthen reconciliation and review procedures and ensure federal activity is accurately reported on the Schedule of Expenditures of Federal Awards.

View Audit 414666

Finding 1240051 (2025-001)

Material Weakness 2025

Puerto Rico Industrial Development Company

PR

Reporting § 200.512

VIEWS OF RESPONSIBLE OFFICIALS Management is responsible for designing and maintaining internal controls over financial reporting that is sufficient to provide reasonable assurance that management can prepare the financial statement and the Uniform Guidance Audit Report in conformity with US GAAP an...

VIEWS OF RESPONSIBLE OFFICIALS Management is responsible for designing and maintaining internal controls over financial reporting that is sufficient to provide reasonable assurance that management can prepare the financial statement and the Uniform Guidance Audit Report in conformity with US GAAP and federal regulations. Management will improve accounting and financial reporting policies and procedures to include the timely insurance of the financial statement and the uniform guidance report. IMPLEMENTATION DATE March 31, 2027 RESPONSIBLE PERSON Naelia Cruz Cañals, CFO

View Audit 414663

Finding 1240009 (2025-004)

Material Weakness 2025

Early Childhood Alliance, Inc.

IN

Reporting § 200.512

Views of Responsible Officials and Planned Corrective Actions: Responsible Person(s): ECA Executive Director/Whittle Strategic Accounting Anticipated Completion Date: November 2026 In September 2026, the Organization terminated its contract with the previous accounting services provider and engaged ...

Views of Responsible Officials and Planned Corrective Actions: Responsible Person(s): ECA Executive Director/Whittle Strategic Accounting Anticipated Completion Date: November 2026 In September 2026, the Organization terminated its contract with the previous accounting services provider and engaged Whittle Strategic Accounting. Whittle Strategic Accounting has a proven history of working with nonprofit organizations, many of whom are audited, and they have systems and processes that will provide better controls over the accuracy and timeliness of the financials. As part of their regular monthly close processes, Whittle Strategic Accounting prepares financials and workpapers in a manner that allows for a more seamless audit. This will reduce the amount length of time that it takes for an audit to be preformed and will allow the Organization to file required reports with the Federal Audit Clearinghouse in a timely manner. ECA Management will ensure that all materials necessary for audit review will be maintained and reviewed monthly. Monthly board and committee minutes will be maintained in a secure online file folder, accessible upon request for audit reporting.

View Audit 414637

Finding 1240007 (2025-001)

Material Weakness 2025

Early Childhood Alliance, Inc.

IN

Reporting Internal Control / Segregation of Duties

Views of Responsible Officials and Planned Corrective Actions: Responsible Person(s): Leesha Culp, Director CACFP/ECA Executive Director Anticipated Completion Date: November 2026 In September 2026, the Organization terminated its contract with its previous accounting services provider and engaged W...

Views of Responsible Officials and Planned Corrective Actions: Responsible Person(s): Leesha Culp, Director CACFP/ECA Executive Director Anticipated Completion Date: November 2026 In September 2026, the Organization terminated its contract with its previous accounting services provider and engaged Whittle Strategic Accounting with demonstrated experience serving nonprofit organization subject to annual audits. In conjunction with this transition, ECA management will implement and oversee a documented grant-tracking and review process. Management will maintain complete award documentation, establish and approved grant-specific accounting codes, and provide coding direction to the financial services provider. ECA management will review grant activity against award documents and the general ledger at least quarterly. Before the SEFA is finalized, a designated member of management will independently verify the federal agency, pass-through entity, Assistance Listing number, program name, and total federal expenditures and document final approval. The new provider will support transaction recording and reconciliation. ECA management will retain responsibility for the internal controls, accuracy, review, and approval of all grant information and the SEFA.

View Audit 414637

Finding 1240002 (2025-001)

Material Weakness 2025

Traffick911

TX

Allowable Costs / Cost Principles Cash Management Material Weakness

Corrective Action: Management determined that a breakdown in the manual invoice verification workflow allowed duplicate health insurance transactions to be processed and submitted for reimbursement. Upon discovering the duplicate entries in May 2026, management conducted a comprehensive review of el...

Corrective Action: Management determined that a breakdown in the manual invoice verification workflow allowed duplicate health insurance transactions to be processed and submitted for reimbursement. Upon discovering the duplicate entries in May 2026, management conducted a comprehensive review of eligible expenditures incurred during the applicable grant periods. The review identified $102,713 in eligible program costs that had been incurred but had not previously been billed. This included $100,462 applicable to closed grant 3245806, $1,666 applicable to open grant 3245807, and $585 applicable to open grant 5325201. After accounting for these eligible, previously unbilled expenditures, the remaining variance was $45,643. The $45,643 remaining variance, associated with October, November, and December 2025 billings, was deferred and applied to allowable billings in June 2026. Traffick911 has implemented corrective measures to strengthen financial controls and prevent recurrence. The organization has hired new finance staff, contracted with a PEO to manage payroll and benefits, and instituted a monthly reconciliation of medical insurance expenses against payroll reports to ensure ongoing accuracy. Name of Contact Person: Danielle Upton, Chief Administrative Officer, (214) 685-5850, danielle@traffick911.com Projected Completion Date: Initial billing corrections were successfully finalized in June 2026. Additional oversight and internal controls regarding medical insurance expenses are on track for full implementation by December 31, 2026.

View Audit 414625

Finding 1239961 (2025-225)

Material Weakness 2025

State of Idaho

ID

Material Weakness Reporting Matching / Level of Effort / Earmarking § 200.302 § 200.303

Finding Number 2025-225: The Division could not provide supporting documentation for amounts reported on the Rehabilitation Services Administration (RSA) reports required under the Rehabilitation Services-Vocational Rehabilitation Grants to States. Federal Program: 84.126 - Rehabilitation Services -...

Finding Number 2025-225: The Division could not provide supporting documentation for amounts reported on the Rehabilitation Services Administration (RSA) reports required under the Rehabilitation Services-Vocational Rehabilitation Grants to States. Federal Program: 84.126 - Rehabilitation Services - Vocational Rehabilitation Grants to States Related to Prior Finding: N/A Agency’s view: IDVR agrees that retention of supporting documentation aligned with the RSA-17 report submitted to RSA is necessary to ensure adequate documentation of the completed reports is created and maintained to support the submission. Corrective Action: IDVR has completed significant work to complete restatements of the RSA-17 for FFY2019-2024. These restatements have been accepted by the RSA Fiscal Unit and the reports were updated in RSAMIS by RSA after this process was completed in Spring 2026. With the restatement, RSA and IDVR have accepted the data based on an extensive third-party forensic review of IDVR’s financial records for these timeframes. IDVR is currently in the process of submitting the policy, procedures, and internal controls to RSA regarding the federal reporting of the RSA-17 required data elements. The fiscal staff have also worked extensively to ensure all future RSA-17 reports include supporting documentation that have been extracted from Luma and this process has been implemented as of February 2026. Once RSA approves the IDVR RSA-17 policy, procedures, and internal controls IDVR will adopt, train, and implement these documents as standard practice and will complete all future reports in accordance with the outlined controls and maintain the supporting documentation as outlined in the policy. Anticipated Corrective Action Date: January 30, 2027 Responsible for Corrective Action: Heidi Smith, Financial Officer Heidi.Smith@vr.idaho.gov (208) 287-6457

View Audit 414614

Finding 1239960 (2025-224)

Material Weakness 2025

State of Idaho

ID

Reporting Procurement, Suspension & Debarment Allowable Costs / Cost Principles § 200.303 § 200.510

Finding Number 2025-224: The Department overstated federal grant expenditures on the Schedule of Expenditures of Federal Awards (SEFA) closing package. Federal Program: 21.027 – Coronavirus State and Local Fiscal Recovery Fund Related to Prior Finding: N/A Agency’s view: The department agrees with t...

Finding Number 2025-224: The Department overstated federal grant expenditures on the Schedule of Expenditures of Federal Awards (SEFA) closing package. Federal Program: 21.027 – Coronavirus State and Local Fiscal Recovery Fund Related to Prior Finding: N/A Agency’s view: The department agrees with the finding and asserts that it was a one-of-a-kind error in the timing of recording of one expenditure transaction. The error went undetected for a few months during the very confusing and difficult Luma transition year. When staff detected the error they believed the expenditure was still required to be reported on a SEFA and the only option available was to report it in FY 2025. Corrective Action: Staff have already completely familiarized themselves with the guidance on “New Requirement for Wire Payment Requests” issued by SCO on October 6, 2025. We are confident that our understanding of these new procedures will prevent any future occurrence. Anticipated Corrective Action Date: September 28, 2026 Responsible for Corrective Action: Steve Martin, Financial Officer Steve.Martin@idpr.idaho.gov (208) 869-4120

View Audit 414614

Finding 1239957 (2025-221)

Material Weakness 2025

State of Idaho

ID

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting § 200.303

Finding Number 2025-221: The Division did not complete required Federal Funding Accountability and Transparency Act (FFATA) reports for the Homeland Security Grant Program. Federal Program: 97.067 - Homeland Security Grant Program Related to Prior Finding: N/A Agency’s view: The agency agrees with t...

Finding Number 2025-221: The Division did not complete required Federal Funding Accountability and Transparency Act (FFATA) reports for the Homeland Security Grant Program. Federal Program: 97.067 - Homeland Security Grant Program Related to Prior Finding: N/A Agency’s view: The agency agrees with the issue identified. Corrective Action: Condition - subawards of $30,000 or more are to be reported to the FFATA Subaward Reporting System (FSRS). All FFATA reports are due by the end of the month following the month the subawards are obligated. While IOEM utilizes a tracker for FFATA reporting, some reports were late or missing. Federal government shutdowns, the change in FFATA reporting portal (FSRS was retired on March 8, 2025, and all FFATA reporting must be submitted in SAM.GOV), staffing turnover and delayed grant reimbursements resulted FFATA reporting delays. Resolution - The IOEM Finance Section (group responsible for FFATA reporting) is now fully staffed, and a Standard Operating Procedure / Instruction Guide has been developed to assist existing and new staff in adhering to FFATA reporting requirements in the new SAM.GOV interface. This will ensure consistency and thoroughness in FFATA reporting. Anticipated Corrective Action Date: August 31, 2026. Responsible for Corrective Action: Kari Harneck, IOEM Finance Section Chief kharneck@imd.idaho.gov (208) 258-6511

View Audit 414614

Finding 1239943 (2025-216)

Material Weakness 2025

State of Idaho

ID

Allowable Costs / Cost Principles Reporting Internal Control / Segregation of Duties § 200.303

Finding Number 2025-216: The Department understated federal expenditures on the Children's Health Insurance Program (CHIP) CMS-21 Base Reports by $1,088,209. Federal Program: 93.767 - Children's Health Insurance Program Related to Prior Finding: N/A Agency’s view: The agency agrees with the finding....

Finding Number 2025-216: The Department understated federal expenditures on the Children's Health Insurance Program (CHIP) CMS-21 Base Reports by $1,088,209. Federal Program: 93.767 - Children's Health Insurance Program Related to Prior Finding: N/A Agency’s view: The agency agrees with the finding. Corrective Action: During the FFY 2026, Quarter 1 CMS-21 reporting cycle, the Medicaid Budget Team identified underreported indirect expenditures for State Fiscal Years 2024 and 2025. The discrepancies were traced to initial reporting issues following the LUMA system go-live in July 2023, which resulted in indirect expenditures not being incorporated into the CMS-21 reporting process. To address the underreporting, the Medicaid Budget Team entered prior-period adjustments on CMS 21P forms to claim the eligible expenditures for the affected eight quarters, consistent with applicable CMS reporting requirements. To strengthen internal controls and prevent recurrence, the Medicaid Budget Team developed a new report that automatically incorporates indirect expenditures into the CMS-21 workpapers. This automated process reduces the risk of indirect expenditures being omitted and provides additional control to improve the completeness and accuracy of future CMS-21 reporting. Included is the CMS 21 Summary Sheet which shows the consolidation of the prior period adjustments make to claim all identified expenditures that had been omitted (line 2). Anticipated Corrective Action Date: October 1, 2025 Responsible for Corrective Action: Erica Williams, Financial Specialist Principal Erica.Williams@dhw.idaho.gov (208) 334-5500

View Audit 414614

Finding 1239940 (2025-214)

Material Weakness 2025

State of Idaho

ID

Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Reporting § 200.303

Finding Number 2025-214: The Department did not review the Child Care Development Fund (CCDF) Administration for Children and Families (ACF) Form 696 report at a sufficient level to identify an $88,822 misstatement. Federal Program: 93.596 - Child Care Mandatory and Matching Funds of the Child Care ...

Finding Number 2025-214: The Department did not review the Child Care Development Fund (CCDF) Administration for Children and Families (ACF) Form 696 report at a sufficient level to identify an $88,822 misstatement. Federal Program: 93.596 - Child Care Mandatory and Matching Funds of the Child Care and Development Fund Related to Prior Finding: 2024-224 Agency’s view: The agency agrees with the finding. Corrective Action: The Grant Reporting Team Lead, Cash and Grants Supervisor, and/or Financial Manager will strengthen its review by performing and documenting an in-depth review of the ACF-696 workpapers each time a grant budget period or phase is rolled forward. This review will be completed within 90 days of the start of the new budget period and will include verification of applicable formulas and other highrisk calculations. To provide ongoing oversight, the Grant Log will be used as a centralized tracking mechanism to document budget period start dates, assigned reviewer, review completion date, identified discrepancies, and resolution of any issues. Reviewers will retain documentation evidencing the review and any corrections made. The Cash and Grants Supervisor or Financial Manager will periodically verify completion of the reviews and evaluate identified discrepancies to determine whether additional corrective action or process changes are necessary. These procedures are intended to provide a documented, repeatable review process with sufficient precision to identify reporting errors. Anticipated Corrective Action Date: January 31, 2027 Responsible for Corrective Action: Randena P. Darpli, CPA, CGFM, Financial Manager dena.darpli@dhw.idaho.gov (208) 334-4909

View Audit 414614

Finding 1239939 (2025-213)

Material Weakness 2025

State of Idaho

ID

Reporting Internal Control / Segregation of Duties § 200.303

Finding Number 2025-213: A Social Services Block Grant (SSBG) financial report was not submitted timely. Federal Program: 93.667 - Social Services Block Grant Related to Prior Finding: N/A Agency’s view: The agency agrees with the finding. Corrective Action: The Department will strengthen its existi...

Finding Number 2025-213: A Social Services Block Grant (SSBG) financial report was not submitted timely. Federal Program: 93.667 - Social Services Block Grant Related to Prior Finding: N/A Agency’s view: The agency agrees with the finding. Corrective Action: The Department will strengthen its existing grant reporting controls to provide earlier identification and escalation of issues that could prevent timely submission of required financial reports. The Grant Reporting Team will continue to use the Grant Log to monitor reporting due dates and will identify required source information and establish an internal completion date sufficiently in advance of the grantor deadline. If required information is unavailable, incomplete, or otherwise prevents the report from being finalized, the Grant Reporting Team Lead will escalate the issue to the Cash and Grants Supervisor and/or Financial Manager for resolution. When appropriate, the Department will communicate with the grantor regarding the reporting issue and request an extension before the established due date. Documentation of the request, grantor response, and any related resolution will be retained in the grant file. The Report Routing Cover Sheet will be updated to document the completion of required reporting steps, including confirmation that all necessary supporting information has been received, required management review has occurred, and any extension request or related grantor communication has been documented and retained. The Cash and Grants Supervisor will review the Grant Log and Report Routing Cover Sheets at least monthly to identify upcoming reports, unresolved information requests, and reports at risk of missing their due dates. This process will provide management with sufficient advance notice to intervene when necessary and will establish a documented record demonstrating that required financial reports were monitored through completion and submitted timely. Anticipated Corrective Action Date: January 31, 2027 Responsible for Corrective Action: Randena P. Darpli, CPA, CGFM, Financial Manager dena.darpli@dhw.idaho.gov (208) 334-4909

View Audit 414614

Finding 1239938 (2025-212)

Material Weakness 2025

State of Idaho

ID

Reporting Internal Control / Segregation of Duties Allowable Costs / Cost Principles § 200.303

Finding Number 2025-212: A Social Services Block Grant (SSBG) Post-Expenditure Report did not include a review and approval prior to submission. Federal Program: 93.667 - Social Services Block Grant Related to Prior Finding: N/A Agency’s view: The agency agrees with the finding. Corrective Action: T...

Finding Number 2025-212: A Social Services Block Grant (SSBG) Post-Expenditure Report did not include a review and approval prior to submission. Federal Program: 93.667 - Social Services Block Grant Related to Prior Finding: N/A Agency’s view: The agency agrees with the finding. Corrective Action: The SSBG Post-Expenditure Report has been added to the Department’s Grant Log with the applicable due date and will follow the Department’s established federal financial reporting review process. Prior to submission, the Grant Reporting Team will prepare the report and supporting workpapers, these include reconciliation of reported expenditures to the underlying financial records and documentation supporting the information reported. The report will be routed to the appropriate supervisor and/or Financial Manager for review and approval before submission. The Report Routing Cover Sheet will document the preparer, reviewer, date of review, approval, and any corrections or followup required. The Cash and Grants Supervisor will monitor the Grant Log to ensure the Post-Expenditure Report is routed, reviewed, approved, and submitted by the required due date. Completed Report Routing Cover Sheets and supporting documentation will be retained with the grant records as evidence that the required review and approval occurred prior to submission. This process will provide a documented review and approval control over the SSBG Post-Expenditure Report and ensure that management has evidence that the report was reviewed for accuracy and completeness before it is submitted. Anticipated Corrective Action Date: March 31, 2027 Responsible for Corrective Action: Randena P. Darpli, CPA, CGFM, Financial Manager dena.darpli@dhw.idaho.gov (208) 334-4909

View Audit 414614

Finding 1239937 (2025-211)

Material Weakness 2025

State of Idaho

ID

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties § 200.303

Finding Number 2025-211: Federal Funding Accountability and Transparency Act (FFATA) reports were not reviewed prior to submission and were not submitted timely. Federal Program: 93.568 - Low-Income Home Energy Assistance Related to Prior Finding: N/A Agency’s view: The agency agrees with the findin...

Finding Number 2025-211: Federal Funding Accountability and Transparency Act (FFATA) reports were not reviewed prior to submission and were not submitted timely. Federal Program: 93.568 - Low-Income Home Energy Assistance Related to Prior Finding: N/A Agency’s view: The agency agrees with the finding. Corrective Action: The FFATA Data Worksheet, developed by DHW, includes a list of all obligations of federal funds to subgrantees of $30,000 or more that occurred during the prior month. The due date will be added to the FFATA Data Worksheet to draw particular attention to that. The FFATA Data Worksheet is prepared by the Grant Reporting Team Lead, Financial Specialist, Senior, and the Cash and Grants Supervisor, Financial Specialist, Principal, will be responsible for reviewing it to ensure all applicable subgrants are included for the month. Once that review has occurred and any resulting edits have been made, the FFATA Data Worksheet will be returned to the Grant Reporting Team Lead to enter the data in sam.gov. As sam.gov does not offer a “save” function, there is not a presubmission review. The previously discussed review by the Cash and Grants Supervisor is aimed at preventing any noncompliance related to omission of reportable obligations. A final review aimed at detecting and timely correcting any material misstatements will take place with the Technical Records Specialist completing a data entry review to ensure the data entered into sam.gov agrees with the FFATA Data Worksheet. A FFATA Report Routing Sheet will also be developed to document the above reviews and approvals. The FFATA Report Routing Sheet will also include the due date as another point of monitoring for timely submission. Completed routing sheets and supporting documentation will be retained in the grant file as evidence that the required review, submission, and verification procedures are performed. Anticipated Corrective Action Date: January 31, 2027 Responsible for Corrective Action: Randena P. Darpli, CPA, CGFM, Financial Manager dena.darpli@dhw.idaho.gov (208) 334-4909

View Audit 414614

Finding 1239935 (2025-210)

Material Weakness 2025

State of Idaho

ID

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Reporting § 200.302 § 200.303

Finding Number 2025-210: The Department did not provide documented support to verify the accuracy of a Low Income Energy Assistance Program (LIHEAP) performance report. Federal Program: 93.568 - Low-Income Home Energy Assistance Related to Prior Finding: 2024-230 Agency’s view: The agency agrees wit...

Finding Number 2025-210: The Department did not provide documented support to verify the accuracy of a Low Income Energy Assistance Program (LIHEAP) performance report. Federal Program: 93.568 - Low-Income Home Energy Assistance Related to Prior Finding: 2024-230 Agency’s view: The agency agrees with the finding. Corrective Action: The Department has updated a process document that will strengthen our internal controls regarding the LIHEAP performance report. The Department will compile and retain sufficient documentation to support the information included in the LIHEAP Performance report. Anticipated Corrective Action Date: The process document was updated on September 9, 2026, and will be utilized when completing the upcoming LIHEAP performance report. Responsible for Corrective Action: Lisa Johnson, Program Manager Lisa.Johnson@dhw.idaho.gov (208) 334-5739

View Audit 414614

Finding 1239933 (2025-209)

Material Weakness 2025

State of Idaho

ID

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Material Weakness § 200.303

Finding Number 2025-209: The Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) project and expenditure reports (P&E) contained misstatements. Federal Program: 21.027 - Coronavirus State and Local Fiscal Recovery Fund Related to Prior Finding: N/A Agency’s view: The Division agrees with the ...

Finding Number 2025-209: The Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) project and expenditure reports (P&E) contained misstatements. Federal Program: 21.027 - Coronavirus State and Local Fiscal Recovery Fund Related to Prior Finding: N/A Agency’s view: The Division agrees with the finding and recognizes that additional controls are needed to ensure CSLFRF Project and Expenditure reports are accurate, fully supported, and more thoroughly reconciled to the State’s accounting system before submission. The Division notes that the identified errors were below the program’s materiality threshold and did not result in a finding of material noncompliance or a material weakness. The Division also corrects reporting errors when they are identified. However, Treasury’s published FAQ and written correspondence (attached) confirm that submitted reports cannot be reopened after the reporting deadline. Because P&E reports are cumulative, any necessary corrections must be reflected in a subsequent reporting period. This required correction process contributed to some of the differences identified during the audit because adjustments related to prior periods were necessarily recorded in later reports. Accordingly, the timing of these adjustments was consistent with Treasury’s prescribed reporting process. Corrective Action: The Division will implement the following corrective actions for all remaining CSLFRF P&E reports: 1. Required agency support. Each administering agency will submit a completed reporting template for every active project. If no activity occurred, the agency must provide documented confirmation of no change. Missing templates will be tracked and escalated before the report is finalized. 2. Reconciliation to Luma. Current and cumulative expenditures and obligations will be reconciled by administering agency to Lumat. All differences will be documented and resolved before submission. 3. Independent detailed review. The review will cover source templates, Luma reconciliations, current and cumulative amounts, prior-period balances, adjustments, and evidence supporting projects reported with no change. 4. Procedures, training, and retention. The Division will document the reporting process, provide training and cross-training to staff involved in CSLFRF reporting, and retain the templates, reconciliations, agency confirmations, review checklist, and final submission support in a centralized reporting file. 5. Correction of prior reporting errors. The Division will correct the identified errors through Treasury's prescribed process. In written email correspondence to Justin Collins, the U.S. Department of the Treasury confirmed: 'Prior submitted reports are not eligible to be reopened for revisions since the reporting deadline has passed. The SLFRF Project and Expenditure Reports are cumulative reports, and any adjustments needed will need to be made in the next reporting period.' Accordingly, the Division will document and include the necessary adjustments in the next available cumulative P&E report and retain Treasury's email as support for the correction method. Anticipated Corrective Action Date: January 31, 2027. The revised controls will be applied before submission of the next required quarterly CSLFRF P&E report. Responsible for Corrective Action: Justin Collins, Deputy Administrator | State Financial Officer Justin.collins@dfm.idaho.gov (208) 854-3063

View Audit 414614

Finding 1239926 (2025-202)

Material Weakness 2025

State of Idaho

ID

Reporting § 200.303

Finding Number 2025-202: The Commission did not complete required SF-425 reports for the Aging Cluster in a timely manner. Federal Programs: 93.044 - Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.045 - Special Programs for the Aging, Title II...

Finding Number 2025-202: The Commission did not complete required SF-425 reports for the Aging Cluster in a timely manner. Federal Programs: 93.044 - Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.045 - Special Programs for the Aging, Title III, Part C, Nutrition Services 93.053 - Nutrition Services Incentive Program Related to Prior Finding: N/A Agency’s view: The Commission agrees with this finding. Corrective Action: At the time of the audit period, the Commission was still working to complete Aging Cluster SF-425 Federal Financial Reports. Several operational challenges contributed to delays, including fiscal staffing transitions and state software system implementation. The Commission has now fully corrected this issue. All past-due SF-425 reports were reviewed, finalized, and submitted, bringing the agency fully current on Aging Cluster federal financial reporting requirements. Anticipated Corrective Action Date: The Commission completed required SF-425 reports in a timely manner in SFY 2026. All outstanding SF-425 reports were completed and submitted by January 31, 2026, marking the date of full corrective action implementation. Responsible for Corrective Action: Vicki Yanzuk, Operations Manager Vicki.yanzuk@aging.idaho.gov (208) 577-2847

View Audit 414614

Finding 1239921 (2025-201)

Material Weakness 2025

State of Idaho

ID

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting § 200.303

Finding Number 2025-201: The Commission did not include administrative costs in required reports for the Federal Funding and Accountability Transparency Act (FFATA). Additionally, the Commission did not have any documentation to support adequate controls over FFATA reporting. Federal Programs: 93.04...

Finding Number 2025-201: The Commission did not include administrative costs in required reports for the Federal Funding and Accountability Transparency Act (FFATA). Additionally, the Commission did not have any documentation to support adequate controls over FFATA reporting. Federal Programs: 93.044 - Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers 93.045 - Special Programs for the Aging, Title III, Part C, Nutrition Services Related to Prior Finding: N/A Agency’s view: The Commission agrees with this finding. Corrective Action: The Commission acknowledges that the sub-award amounts reported under ALNs 93.044, 93.045, and 93.053 did not include all allocable administrative costs for the subrecipient tested. We have taken the following corrective actions, all of which were implemented during the audit following identification of this issue: 1. Revised FFATA Sub-Award Reports - The Commission revised the affected FFATA subaward reports in SAM.gov to include the administrative costs allocable to each of the three tested ALNs for the sub-recipient identified in the finding. The revised reports were provided to LSO for review on 06/18/2026. 2. Revised FFATA Reporting Policy Implemented: The Commission developed a documented policy governing FFATA sub-award data entry, review, and approval. The policy establishes the following: • The Financial Technician is responsible for entering all FFATA sub-award data and must confirm that reported amounts include direct program costs and administrative costs allocable to the sub-award. • The Financial Specialist Senior is required to review all FFATA entries for accuracy and completeness. The Financial Specialist will document their review. This step is the specific control that was absent during the audit period. • Documentation of each review and approval must be retained. Purpose: To document SCO Corrective Action Plan. Source: Ethan Draves, Financial Specialist, Pr. Tickmark Legend: Agrees with the agency response provided in Section 2815. Corrective action contains all requirements required by 2 CFR 200.511(c) (contact name, corrective action, anticipated completion, and an explanation if the auditee disagrees). Agency didn't specifically include if they agree or disagree with the finding Anticipated Corrective Action Date: The Commission issued a memorandum to LSO on 06/18/2026 identifying the revisions made to the FFATA reports and providing the policy. That memorandum is incorporated by reference into this response. This finding and corrective action is completed. Responsible for Corrective Action: Vicki Yanzuk, Operations Manager Vicki.yanzuk@aging.idaho.gov 208-577-2847

View Audit 414614

Finding 1239900 (2025-003)

Material Weakness 2025

Innercity Muslim Action Network

IL

Reporting Matching / Level of Effort / Earmarking

Management has worked diligently to improve the financial reporting and audit readiness during 2026 and expect to meet the federal audit due date for the 2026 audit.Person(s) Responsible: Katrina King, CFO Timing for Implementation: December 31, 2026

View Audit 414533

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