Corrective Action Plans

Finding 1239898 (2025-002)

Material Weakness 2025

Pace Center for Girls, Inc. and Affiliates

FL

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting § 200.303 § 200.512

Findings Relating to Financials Statement: Finding 2025-002 – Late Filing SUGGESTED CORRECTIVE ACTION PLAN ON LATE FILING Planned Corrective Actions Management will implement a formal Single Audit filing calendar that identifies all statutory deadlines for Federal Single Audit (FAC) and Florida Sing...

Findings Relating to Financials Statement: Finding 2025-002 – Late Filing SUGGESTED CORRECTIVE ACTION PLAN ON LATE FILING Planned Corrective Actions Management will implement a formal Single Audit filing calendar that identifies all statutory deadlines for Federal Single Audit (FAC) and Florida Single Audit submissions, including interim milestones for close, audit fieldwork, report issuance, and filing. The Controller will be assigned to oversee audit coordination, monitor progress against deadlines, and ensure timely submission of all required reporting packages and certifications. Management will implement a submission checklist to verify completeness of the reporting packages prior to submission and will retain documentation evidencing timely filing with both the Federal Audit Clearinghouse and the Florida Auditor General. Management will accelerate year‑end close and audit preparation to allow sufficient time for review and filing prior to statutory deadlines. In addition to the audit filing status being periodically communicated to Executive Leadership Team, the Chair of the Audit Committee and the Chair of the Finance Committee, the calendar will also be shared going forward to enhance governance to support oversight and accountability. Anticipated Completion Date: 09/15/2026 Responsible Person/Title: April Dobes, CFO Management Statement: Management believes these actions will prevent recurrence and ensure timely filing of future Federal and Florida Single Audits.

View Audit 414525

Finding 1239837 (2025-002)

Material Weakness 2025

Mountain Home Montana, INC

MT

Reporting

With regard to Federal Award Finding 2025-002, Compliance over Federal Financial Reporting - Significant Deficiency, in the audit report for Mountain Home Montana, Inc. for the year ended December 31, 2025, we offer the following response: MHM will create a shared system of reminders within the Fina...

With regard to Federal Award Finding 2025-002, Compliance over Federal Financial Reporting - Significant Deficiency, in the audit report for Mountain Home Montana, Inc. for the year ended December 31, 2025, we offer the following response: MHM will create a shared system of reminders within the Finance Department's schedule and calendar to ensure that the SF-425 report is filed within 90 days of the end of the budget period. This reminder system will include a minimum of three people: the Senior Director of Finance People & Operations, the Billing and Finance Specialist, and the contracted Finance Consultant & Bookkeeper, to safeguard against the filing being late. Creating a system where the timely filing of the SF-425 is the responsibility of the Finance Department vs the responsibility of a single person will ensure that the filing is always completed on time.

View Audit 414514

Finding 1239797 (2025-001)

Material Weakness 2025

Meriwether County Board of Education

GA

Subrecipient Monitoring Reporting Special Tests & Provisions § 200.303

FA 2025-01 Internal Controls over Wage Rate Requirements Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: Assistance Listing Number and Title: Federal Award Number: Repeat of Prior Year Finding: Description: Special Tests and Provision...

FA 2025-01 Internal Controls over Wage Rate Requirements Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: Assistance Listing Number and Title: Federal Award Number: Repeat of Prior Year Finding: Description: Special Tests and Provisions Material Weakness Material Noncompliance U.S. Department of Education Georgia Department of Education COVID-19 - 84.425U - American Rescue Plan Elementary and Secondary School Emergency Relief Fund S425U210012 (Year: 2022) FA 2024-001 Description: A review of construction-related expenditures charged to the Elementary and Secondary School Emergency Relief Fund program revealed that the School District's internal control procedures were not operating to ensure that Wage Rate Requirements were followed appropriately. Corrective Action Plans: The Meriwether County School District is committed to maintaining full compliance with the Davis-Bacon Act and related Federal wage requirements for all construction projects funded with Federal dollars. To ensure compliance, we are implementing clear, documented procedures to verify that all construction-related contracts include the appropriate wage provisions and that certified payroll records are submitted weekly and in a timely manner by all contractors and subcontractors. The following steps outline how the district will develop, implement, and monitor these procedures: Development and Implementation Procedures 1. Contract Template Updates All standard construction contract templates will be updated to include Davis-Bacon prevailing wage rate requirements, certified payroll provisions, and enforcement language. 2. Inclusion in Bid Documents and RFPs All bid solicitations and RFPs for federally funded construction projects will explicitly reference the applicable Federal wage determinations and required payroll documentation. 3. Pre-Award Contractor Communication Contractors will be notified in writing of their obligations under the Davis-Bacon Act during the bid process and again at contract award. 4. Pre-Construction Orientation Pre-construction meetings will be held with contractors and subcontractors to review Davis-Bacon requirements, wage determinations, and payroll submission expectations. Monitoring and Enforcement Procedures 1. Certified Payroll Collection Contractors will be required to submit certified payrolls weekly for each week of work performed. A checklist and calendar will be maintained by the project manager to track submissions. 2. Payroll Verification Process Submitted certified payrolls will be reviewed for completeness, accuracy, and compliance with wage rates. Spot checks (e.g., worker interviews or site visits) will be conducted periodically. 3. Centralized Document Storage All certified payrolls and compliance records will be stored in a centralized, secure digital file system accessible by authorized district staff and available for audit or federal review. 4. Compliance Reporting and Follow-Up Any instances of non-compliance will be documented and addressed promptly. Corrective actions may include written warnings, payment withholdings, or notification to oversight agencies. 5. Internal Audits and Staff Training The district' s Federal Programs Director will conduct internal quarterly audits as necessary when Federal funds are being used to verify proper procedures are being followed, and ongoing training will be provided to staff involved in procurement, contracting, and facilities management. By implementing these procedures, the district will ensure that all federally funded construction contracts fully comply with applicable wage laws and that payroll records are collected, reviewed, and maintained in a timely and transparent manner. Regular monitoring and staff accountability will help ensure continued legal compliance and project integrity. Estimated Completion Date: June 30, 2025 Contact Person: Carrie Chambers, Federal Programs Director Telephone: 706-441-0601 Email: carrie.chambers@mcssga.org

View Audit 414493

Finding 1239796 (2025-001)

Material Weakness 2025

City of North Chicago

IL

Reporting Material Weakness

SECTION 5 – CORRECTIVE ACTION PLAN Finding 2025-001: Grant Reporting Condition: For 1 out of 1 sample tested (100%), the auditee reported expenses for the federal program on the SEFA in a period different from when the related federal award activity occurred. Corrective Action Plan: Management shoul...

SECTION 5 – CORRECTIVE ACTION PLAN Finding 2025-001: Grant Reporting Condition: For 1 out of 1 sample tested (100%), the auditee reported expenses for the federal program on the SEFA in a period different from when the related federal award activity occurred. Corrective Action Plan: Management should implement a documented SEFA cutoff review to verify that expenditures are reported in the correct fiscal year and supported by the general ledger and grant records. Anticipated Date of Completion: Fiscal Year 2026 Name of Contact Person: Tawanda Joyner, Comptroller Management Response: The City will strengthen its revenue posting process by ensuring fiscal year placement at the point of entry. Specifically, all revenue transactions that arrive at the beginning or end of the fiscal year will be reviewed by the Comptroller prior to posting to the general ledger to confirm the correct fiscal year coding and that the revenue is allocated to the appropriate period based on established cutoff and supporting documentation. After the Comptroller’s review and approval, Accounting will post the revenue to the correct fiscal year and update the related records to ensure tie-outs and reconciliation support reflect the corrected period.

View Audit 414486

Finding 1239784 (2025-009)

Material Weakness 2025

The Mirror, Inc.

KS

Allowable Costs / Cost Principles Reporting Matching / Level of Effort / Earmarking

Plan: Implement internal controls in the Department for matching to be updated monthly in order to evaluate matching level. Director of prevention will work with the accounting team to keep records up to date in order for accounting to make appropriate matching JEs as the grant year progresses. Impl...

Plan: Implement internal controls in the Department for matching to be updated monthly in order to evaluate matching level. Director of prevention will work with the accounting team to keep records up to date in order for accounting to make appropriate matching JEs as the grant year progresses. Implementation Date: Beginning of Fiscal Year 27- October 2026 Responsible Party: Director of Prevention will oversee the staff report of Matching for the grant and ensure that these internal controls are taking place and report to the accounting department as necessary.

View Audit 414482

Finding 1239782 (2025-007)

Material Weakness 2025

The Mirror, Inc.

KS

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting

Plan: Procedures implemented to ensure that all necessary reports for the program are filed in a timely manner. Implementation Date: Beginning of Fiscal Year 26- July 1, 2025 Responsible Party: Melissa Goodman, VP of Reentry Services will oversee the manager of the Work for Success program and ensur...

Plan: Procedures implemented to ensure that all necessary reports for the program are filed in a timely manner. Implementation Date: Beginning of Fiscal Year 26- July 1, 2025 Responsible Party: Melissa Goodman, VP of Reentry Services will oversee the manager of the Work for Success program and ensure reports are on time.

View Audit 414482

Finding 1239778 (2025-003)

Material Weakness 2025

The Mirror, Inc.

KS

Reporting

Plan: Implementing new work flows around grants being awarded. Ensuring all grants are tracked in a single location with identifications within the spreadsheet to track federal awards. Implementation Date: Beginning of Fiscal Year 26- July 1, 2025 Responsible Party: Shelby Turner CFO will review sta...

Plan: Implementing new work flows around grants being awarded. Ensuring all grants are tracked in a single location with identifications within the spreadsheet to track federal awards. Implementation Date: Beginning of Fiscal Year 26- July 1, 2025 Responsible Party: Shelby Turner CFO will review staffs entries on the spreadsheet to ensure necessary data/information for each grant is being kept, in order to have a SEFA prepared for each audit.

View Audit 414482

Finding 1239754 (2025-002)

Material Weakness 2025

Westward Heights

WY

Reporting Significant Deficiency Matching / Level of Effort / Earmarking § 200.327

Corrective Action Plan Year Ended December 31, 2025 The following is the corrective action plan for Section III - Federal Award Findings and Questioned Costs: Finding 2025-002 Summary of Finding: The USDA requires multiple reports to be submitted each fiscal year. During the current year, certain re...

Corrective Action Plan Year Ended December 31, 2025 The following is the corrective action plan for Section III - Federal Award Findings and Questioned Costs: Finding 2025-002 Summary of Finding: The USDA requires multiple reports to be submitted each fiscal year. During the current year, certain reports were not submitted to the USDA until after the due date. Corrective Action Plan: Effective immediately, the Nursing Home Administrator will maintain a calendar reminder to ensure notifications are sent after the close of each quarter when the required report is due for submission. Contact Person: Caitlin Delbridge, NHA Westward Heights Care Center Administrator

View Audit 414465

Finding 1239747 (2025-002)

Material Weakness 2025

ANDREW COUNTY, MISSOURI

MO

Subrecipient Monitoring Reporting § 200.510

We recognize the problem with the SEFA schedule and feel these mistakes were resolved. Please refer to an email from Clerk Sarah Miller dated July 10, 2026. The major error ($500,000) was a result of a typo while filling out the SEFA schedule. I entered $50,701 when the figure should have been $550,...

We recognize the problem with the SEFA schedule and feel these mistakes were resolved. Please refer to an email from Clerk Sarah Miller dated July 10, 2026. The major error ($500,000) was a result of a typo while filling out the SEFA schedule. I entered $50,701 when the figure should have been $550,701. We recognize the errors that occurred and are adjusting our process to try to ensure that they are not repeated in the future.

View Audit 414459

Finding 1239738 (2025-003)

Material Weakness 2025

Council Towers III Housing Development Fund Corporation

NY

HUD Housing Programs Special Tests & Provisions Subrecipient Monitoring

In connection with the procedures applied to a sample of two tenants that moved in and out of the Project during the year, we noted one instance where the tenant's security deposit amount listed in the lease and collected was not deposited in a timely manner and thus the amount per the lease did not...

In connection with the procedures applied to a sample of two tenants that moved in and out of the Project during the year, we noted one instance where the tenant's security deposit amount listed in the lease and collected was not deposited in a timely manner and thus the amount per the lease did not agree to the amount recorded in the accounting records. a. Comments on the Finding and Each Recommendation Management agrees with the finding and recommendation. As part of the transition from TD Bank to IDB Bank, there was a delay in establishing the new security deposit accounts. Once the accounts were finalized, the funds were transferred to the IDB security deposit accounts in December 2025. c. Action(s) Taken or Planned on the Finding Security deposit accounts were established and funded in December 2025. The Project closed its TD Bank accounts and opened new accounts with IDB Bank. Due to delays in establishing the new security deposit accounts at IDB, the funds remained at TD Bank until the accounts were finalized and were subsequently transferred to the IDB security deposit accounts in December 2025.

View Audit 414448

Finding 1239730 (2025-007)

Material Weakness 2025

City of Shreveport

LA

Reporting § 200.1 § 200.303

The City does have sufficient internal controls over ARP reporting. Reports submitted matched the 2025 cumulative expenditures at the time that reporting was due. However, as is always the case with year-end invoices for the fourth quarter 2025 reporting period were processed after the report due da...

The City does have sufficient internal controls over ARP reporting. Reports submitted matched the 2025 cumulative expenditures at the time that reporting was due. However, as is always the case with year-end invoices for the fourth quarter 2025 reporting period were processed after the report due date and updated on our internal ARP spending tracking. Because the Treasury Department does not have a process to amend report submissions, the amounts were included in the next period (1st quarter 2026) report. Responsible Person: Sheila Faour, Director of Finance Anticipated Completion Date: September 30, 2026

View Audit 414438

Finding 1239728 (2025-009)

Material Weakness 2025

FOOTPRINTS, INC.

MO

Internal Control / Segregation of Duties Subrecipient Monitoring Material Weakness § 200.329

Reporting – Assistance Listing Number 14.251 Recommendation: We recommend that management establish and implement a policy to record and retain review of all reports, and to retain proof of submission to verify timeliness of submission of required reports. Explanation of disagreement with audit find...

Reporting – Assistance Listing Number 14.251 Recommendation: We recommend that management establish and implement a policy to record and retain review of all reports, and to retain proof of submission to verify timeliness of submission of required reports. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization will establish and implement policies to record and retain review of all reports, and to retain proof of submission to verify timeliness of submission of required reports. Name of the contact person responsible for corrective action: Joel Bailey Planned completion date for corrective action plan: December 31, 2026

View Audit 414437

Finding 1239724 (2025-003)

Material Weakness 2025

Jewish Family Services

OH

Cash Management Reporting

Finding Number: 2025-003 Condition: The Organization failed to submit monthly reimbursement requests to HIAS by their due dates during the year ended June 30, 2025. Planned Corrective Action: The Organization has implemented system and process improvements to ensure timely submission. The Organizati...

Finding Number: 2025-003 Condition: The Organization failed to submit monthly reimbursement requests to HIAS by their due dates during the year ended June 30, 2025. Planned Corrective Action: The Organization has implemented system and process improvements to ensure timely submission. The Organization has and will continue to maintain appropriate staffing level and sufficient training to ensure timely submission. This plan does not account for circumstances beyond JFS’s control such as timing of funding approval from the grantor. Non-controllable delays will be documented by JFS and reports submitted in a reasonable amount of time following approval. Contact Person Responsible for Corrective Action: Justin Fisher, Senior Director of Accounting Anticipated Completion Date: August 31, 2026

View Audit 414435

Finding 1239723 (2025-002)

Material Weakness 2025

Jewish Family Services

OH

Reporting § 200.303 § 200.510 § 200.518

Finding Number: 2025-002 Condition: The Organization failed to accumulate all expenditures of federal awards into their SEFA resulting in an understatement of expenditures on their 2025 SEFA. Planned Corrective Action: Management has implemented a formal SEFA preparation checklist that includes reco...

Finding Number: 2025-002 Condition: The Organization failed to accumulate all expenditures of federal awards into their SEFA resulting in an understatement of expenditures on their 2025 SEFA. Planned Corrective Action: Management has implemented a formal SEFA preparation checklist that includes reconciliation of total federal expenditures to the general ledger and grant records. This includes establishing a control to identify all federal awards by ALN, including pass-through funding, prior to SEFA finalization and enhanced management review procedures to include verification of completeness and accuracy. Additionally, management will coordinate with program personnel to ensure all sources of federal funding are captured. Contact Person Responsible for Corrective Action: Justin Fisher, Senior Director of Accounting Anticipated Completion Date: August 31, 2026

View Audit 414435

Finding 1239717 (2025-001)

Material Weakness 2025

Homeward Bound Inc.

TX

Reporting Cash Management

Root Cause: The organization failed to correctly process claims under the correct contract. Once errors were detected, a correction was attempted in the CMBHS system, but the system reprocessed the claim with the original incorrect data and it could not be corrected. In addition, finance personnel l...

Root Cause: The organization failed to correctly process claims under the correct contract. Once errors were detected, a correction was attempted in the CMBHS system, but the system reprocessed the claim with the original incorrect data and it could not be corrected. In addition, finance personnel lacked sufficient knowledge and training on how to prepare a Schedule of Expenditures of Federal Awards (SEFA) that accurately reconciles to the general ledger (GL). Corrective Action: 1. Review of existing policies and procedures for completeness. 2. Require supervisory review and approval of all grant-related expenditures prior to posting in external CMBHS system. 3. Continue to conduct training for finance staff on importance of data accuracy when processing in external systems. 4. Continue to reach out to CMBHS help desk and our contract manager to address issues as they arise. 5. Continue to perform monthly and quarterly internal monitoring reviews of grant expenditures to submitted claims. 6. Review of SEFA report with accounting team prior to submission to auditors Responsible Person: Patricia Guerra Implementation Date: • Supervisory review implementation: September 15, 2026 • Staff training: September 15, 2026 • Monthly and Quarterly monitoring reviews: Beginning September 30, 2026 Expected Outcome: All federal grant claims will be processed under the correct contract reducing the risk of future noncompliance

View Audit 414428

Finding 1239712 (2025-007)

Material Weakness 2025

Charter Township of Redford

MI

Subrecipient Monitoring Reporting Material Weakness

Finding Number: 2025-007 Condition: The Township did not have the appropriate processes and controls in place to ensure FFATA reports were appropriately submitted. Planned Corrective Action: The Township will put processes and controls in place to ensure FFATA reports are submitted as needed. Contac...

Finding Number: 2025-007 Condition: The Township did not have the appropriate processes and controls in place to ensure FFATA reports were appropriately submitted. Planned Corrective Action: The Township will put processes and controls in place to ensure FFATA reports are submitted as needed. Contact person responsible for corrective action: Finance Director Anticipated Completion Date: 3/31/2026

View Audit 414415

Finding 1239709 (2025-006)

Material Weakness 2025

Charter Township of Redford

MI

Matching / Level of Effort / Earmarking Cash Management Material Weakness § 200.303

Finding Number: 2025-006 Condition: The Township did not have the appropriate controls in place to ensure reports and reimbursement requests that were required to be submitted under the grant were complete and accurate as well as ensuring the matching requirement was properly reviewed. Planned Corre...

Finding Number: 2025-006 Condition: The Township did not have the appropriate controls in place to ensure reports and reimbursement requests that were required to be submitted under the grant were complete and accurate as well as ensuring the matching requirement was properly reviewed. Planned Corrective Action: The Township will update the Grant Policy to include a requirement for dual review on all grant reporting. Contact person responsible for corrective action: Finance Director Anticipated Completion Date: 3/31/2026

View Audit 414415

Finding 1239705 (2025-001)

Material Weakness 2025

Region Nine Development Commission

MN

Reporting Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

2025-001 Federal Awards Internal Control CORRECTIVE ACTION PLAN (CAP): Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Actions Planned in Response to Finding: The Commission will review policies and procedures to ensure compliance with the Uniform Gui...

2025-001 Federal Awards Internal Control CORRECTIVE ACTION PLAN (CAP): Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Actions Planned in Response to Finding: The Commission will review policies and procedures to ensure compliance with the Uniform Guidance. Official Responsible for Ensuring CAP: Jessica Beyer, Deputy Director, is the official responsible for ensuring corrective action. Planned Completion Date for CAP: June 30, 2026 Plan to Monitor Completion of CAP: The Board of Directors will be monitoring this corrective action plan. Jessica Beyer Deputy Director

View Audit 414405

Finding 1239697 (2025-002)

Material Weakness 2025

Enterprise Rancheria

CA

Reporting

Governance and management concur with this finding, and continue to build an effective team in the finance department.

View Audit 414371

Finding 1239674 (2025-002)

Material Weakness 2025

Waynesboro Redevelopment and Housing Authority

VA

HUD Housing Programs Subrecipient Monitoring Reporting

The Authority agrees with the finding and is in the process of corrective the issue. The PHA will review CFP grants quarterly to ensure proper and timely reporting on all CFP activities and will work the CFO, Tessa Fitzgerald, to ensure all CFP reporting is timely and in compliance with HUD CFP repo...

The Authority agrees with the finding and is in the process of corrective the issue. The PHA will review CFP grants quarterly to ensure proper and timely reporting on all CFP activities and will work the CFO, Tessa Fitzgerald, to ensure all CFP reporting is timely and in compliance with HUD CFP reporting regulations. Kim Byrd, Executive Director, will be responsible for implementing this corrective action by December 31, 2026.

View Audit 414349

Finding 1239673 (2025-004)

Material Weakness 2025

Hope the Mission

CA

Reporting Subrecipient Monitoring Matching / Level of Effort / Earmarking § 200.510

2025-004 Per 2 CFR §200.510(b), the SEFA must include: - A list of individual federal programs by agency, including the Assistance Listing number. - The total federal awards expended for each program, including capital projects funded by federal grants. - Amounts passed through to subrecipients. - O...

2025-004 Per 2 CFR §200.510(b), the SEFA must include: - A list of individual federal programs by agency, including the Assistance Listing number. - The total federal awards expended for each program, including capital projects funded by federal grants. - Amounts passed through to subrecipients. - Outstanding balances for loan or loan guarantee programs. - Significant accounting policies used in preparing the SEFA. Recommendation: We recommend that management: - Implement a reconciliation process to ensure that all federal expenditures are accurately captured in the SEFA. - Provide additional training for accounting personnel on federal reporting requirements. - Review all local government awards to determine whether Federal funds are a component of the contracts. - Review SEFA data for completeness and accuracy before submission. Management’s Response: Management concurs with the recommendation. HTM recognizes that accurate SEFA preparation begins with identification of federal funding when an award is received and cannot depend solely on a year-end exercise performed after transactions have already been recorded. Management will establish a federal award identification and reconciliation process connecting contract administration, accounting records, federal award information, and the final SEFA. Corrective Action Status and Plan: Management is reviewing the FY 2025 SEFA and related award information and plans to formalize an enhanced SEFA preparation and review process by December 31, 2026. Finance/Accounting will maintain a centralized award inventory identifying the awarding agency and pass-through entity, Assistance Listing number, period of performance, federal and nonfederal funding components, amounts passed through to subrecipients, outstanding loan or loan-guarantee balances when applicable, and the accounting policies used to prepare the SEFA. At least quarterly, Accounting will reconcile the inventory and cumulative federal expenditures to the general ledger, grant billing records, award agreements, and supporting schedules; differences will be investigated, resolved, and documented. Management also plans to complete a preliminary year-to-date SEFA review before year-end. As part of the immediate FY 2025 remediation, management will document the bridge from the prior SEFA to the final revised schedule; retain support for the funding classification of County Operating and Measure H amounts; reconcile the final SEFA to the general ledger and project schedules; and ensure related amounts and disclosures in the audit report are updated consistently. The additional implementation activities are described below. • Reviewing all new grant agreements and contracts to identify funding sources and determine the appropriate federal participation percentage. • Providing targeted training to accounting personnel regarding federal reporting requirements and awards with blended funding sources. • Establishing a secondary management review of the SEFA, including reconciliation of expenditures to underlying award agreements and supporting schedules. The Mission's procedures for preparing the Schedule of Expenditures of Federal Awards (SEFA) did not adequately address contracts containing multiple funding sources. In certain instances, awards administered through local government entities contained both federal and state funding components; however, the agreements were initially classified as fully federal for SEFA reporting purposes. In addition, no formal process existed to systematically review funding agreements and document the federal funding portion of each award prior to SEFA preparation. The enhanced review and monitoring procedures will improve the accuracy and completeness of SEFA reporting, ensure that expenditures are properly classified between federal and non-federal funding sources, and reduce the risk of future reporting errors and noncompliance with Uniform Guidance requirements. Name of responsible person: Tisha Lazare, Chief Financial Officer Anticipated completion date: December 31, 2026

View Audit 414344

Finding 1239658 (2025-001)

Material Weakness 2025

South Carolina Public Service Authority

SC

Subrecipient Monitoring Reporting

2025-001 – Timeliness of Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting Award Information Cluster: N/A Federal Granting Agency: U.S. Department of Energy Award Name: Preventing Outages and Enhancing the Resilience of the Electric Grid Formula Grants to States and Indi...

2025-001 – Timeliness of Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting Award Information Cluster: N/A Federal Granting Agency: U.S. Department of Energy Award Name: Preventing Outages and Enhancing the Resilience of the Electric Grid Formula Grants to States and Indian Tribes Award Number: DE-GD0000041 Award Year: 2025 Assistance Listing #: 81.254 Assistance Listing Title: Grid Resilience Grant Program 40101 (d) Pass-through Entity: N/A Management acknowledges that its historical processes did not sufficiently identify first-tier subawards subject to Federal Funding Accountability and Transparency Act (FFATA) reporting requirements under 2 CFR Part 170, nor ensure that required subaward information was reported in the applicable federal reporting system within the required statutory timeframe. Upon identification of the issue, Management took immediate corrective action to identify all active and prior subawards under the Federal award subject to FFATA requirements. Management conducted a comprehensive retrospective review and has already completed and submitted reporting for the thirty-one identified applicable subawards through SAM.gov. To ensure ongoing and future compliance, Management has established and is implementing standard operating procedures to govern FFATA reporting. These procedures include: 1. Identification & Threshold Tracking: Establishing a systematic review mechanism at the time of subaward execution and subsequent modification to promptly identify first-tier subawards meeting or exceeding the $30,000 reporting threshold. 2. Timely Submission Workflow: Designating responsible personnel to compile, review, and report all required subaward data elements through SAM.gov no later than the end of the month following the month in which the subaward or qualifying modification was issued. 3. Documentation & Retention: Maintaining central repositories of reporting confirmation records, date stamps, and supporting documentation evidencing the completion, accuracy, and timeliness of each submission. Management will continue to apply these enhanced monitoring and reporting procedures across all current and future applicable federal awards. Leadership Responsible: Suzanne Ritter, Treasurer & Senior Director Treasury & Accounting and Interim Controller Completion Date: 9/29/2026 Leadership Signature(s) Suzanne Ritter Treasurer & Senior Director Treasury & Accounting and Interim Controller

View Audit 414328

Finding 1239654 (2025-003)

Material Weakness 2025

9/11 Day

CA

Subrecipient Monitoring Reporting Material Weakness § 200.303 § 200.328 § 200.329

Federal Agency Name: Corporation for National and Community Service Federal Financial Assistance Listing #94.012 Program Name: September 11th National Day of Service and Remembrance Grants Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Finding Summary: Rep...

Federal Agency Name: Corporation for National and Community Service Federal Financial Assistance Listing #94.012 Program Name: September 11th National Day of Service and Remembrance Grants Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Finding Summary: Reporting of information on subawards as required by the Federal Funding Accountability and Transparency Act of 2006 (FFATA) was not completed for each of the four subrecipients in which pass through funds exceeded $30,000. Corrective Action Plan: Management agrees with the finding and has implemented procedures to ensure that applicable subawards are identified and reported in accordance with Federal Funding Accountability and Transparency Act (FFATA) requirements. Management will review subawards at the time of award to determine whether federal reporting requirements apply, complete required reporting within the applicable reporting period, and retain documentation supporting completion of the reporting. Responsibility for monitoring and completing required FFATA reporting has been incorporated into the organization's federal grant administration procedures. Responsible Individuals: David Paine - President, Dominique Carver – Operations Director, Miranda Cirtwell – Controller Anticipated Completion Date: December 15, 2025

View Audit 414322

Finding 1239641 (2025-001)

Material Weakness 2025

THE HANSEN FOUNDATION

NJ

Reporting Subrecipient Monitoring Internal Control / Segregation of Duties

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED DECEMBER 31, 2025 Financial Statement Findings: Finding 2025-001 During the audit, we identified deficiencies in internal control over financial reporting related to the Foundation's accounting for its Recovery Housing Programs funding. Specifically, the Fou...

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED DECEMBER 31, 2025 Financial Statement Findings: Finding 2025-001 During the audit, we identified deficiencies in internal control over financial reporting related to the Foundation's accounting for its Recovery Housing Programs funding. Specifically, the Foundation initially recorded federal funding from housing grants received in FY24 and FY25 as revenue rather than as forgivable mortgage liabilities in accordance with the terms of the grant agreements. The Foundation also did not record federal grants receivable for allowable expenditures incurred before year-end that had not yet been requested for reimbursement. Material audit adjustments (proposed by the auditor) were required to reclassify federal funding from revenue to liabilities and to properly record grants receivables. The total proposed/adjustment related to these errors was approximately $1.234 million. Corrective Action Plan: Upon review of the grant amendments and contracts for 29 E. Mill Rd and 1207 McClellan residences, specified federal funding agency of Department of Housing and Urban Development was represented. The amendment identifies the New Jersey Department of Community Affairs as the administering agency, alongside the HUD federal program. This was the first year in which a Single Audit was performed, where the organization had spent $1 million or more in funding for the purpose of establishing new sober living for those dealing with addiction. Going forward, we will work with our Director of Housing to ensure appropriate involvement and communication up front between state representatives of DCA and our internal finance leadership. The goal will be to ensure the organization fully understands its obligations, requirements, and commitments under contract.This will help ensure that the appropriate financial oversight and compliance considerations are addressed throughout the term of the agreement. Finding 2025-002 During the audit, it was noted that the Foundation does not maintain documentary evidence of the review and approval of adjusting and other journal entries. The Foundation's process provides that entries are recorded by the Staff Accountant or Accounting Manager and reviewed by the Controller and/or Chief Financial Officer. While this review is performed, evidence identifying the reviewer, the date of review, and the scope of the review was not retained. Corrective Action Plan: Please be aware that the Hansen Foundation accounting team will create and adopt a journal entry log sheet with corresponding NetSuite Journal Entry audit reports. The log sheet will show who initially reviewed the reports and on what date this was performed. The Accounting Manager and/or Controller will perform initial monthly review and forward to myself for final review. The journal entry log and NetSuite backup reports can then be provided to the Armanino team as part of the year end analysis moving forward. Name of person responsible: Michael Hansen, CFO & Treasurer Anticipated Completion Date: September 30, 2026 DATE: 9/24/2026

View Audit 414299

Finding 1239617 (2025-001)

Material Weakness 2025

Norton Healthcare, Inc. and Affiliates

KY

Allowable Costs / Cost Principles Reporting Subrecipient Monitoring

Finding 2025-001 – A. Activities Allowed or Unallowed, B. Allowable Costs/Cost Principles, C. Cash Management, I. Procurement, Suspension and Debarment, N. Special Tests and Provisions Identification of the federal program: Research and Development Cluster Federal Agency: U.S. Department of Health a...

Finding 2025-001 – A. Activities Allowed or Unallowed, B. Allowable Costs/Cost Principles, C. Cash Management, I. Procurement, Suspension and Debarment, N. Special Tests and Provisions Identification of the federal program: Research and Development Cluster Federal Agency: U.S. Department of Health and Human Services Assistance Listing No: 93.273, Alcohol Research Programs Pass-Through Grantors: University of Louisville Research Foundation; Vanderbilt University Medical Center; Brown University Federal Agency: U.S. Department of Health and Human Services Assistance Listing No: 93.399, Cancer Control Pass-Through Grantor: NRG Oncology Federal Agency: U.S. Department of Health and Human Services Assistance Listing No: 93.846, Arthritis, Musculoskeletal, and Skin Diseases Research Pass-Through Grantor: Regents of the University of Michigan Federal Agency: U.S. Department of Health and Human Services Assistance Listing No: 93.853, Extramural Research Programs in the Neurosciences and Neurological Disorders Pass-Through Grantor: Regents of the University of Michigan Federal Agency: U.S. Department of Agriculture Assistance Listing No: 10.557, WIC Special Supplemental Nutrition Program for Women, Infants, and Children Pass-Through Grantor: Kentucky Cabinet for Health and Family Services – Department of Public Health Division of Adult & Child Health Award Period: January 1, 2025 through December 31, 2025 Summary of finding: A material weakness in internal control over compliance was issued related for the noted findings on the identified programs of Norton Healthcare, Inc. and Affiliates (the Corporation). While the Corporation has procedures in place to process and record transactions, the Corporation did not retain documentation to sufficiently support the design and operation of internal controls over the applicable compliance requirements for the listed federal programs. Furthermore, internal controls over management’s accumulation and review of such expenses for allowability were not suitably designed as it pertained to final approval of expenses incurred. Furthermore, the Corporation’s payroll department did not retain documentation to evidence the review of unapproved timesheets. Planned corrective action: Research Awards - Norton Healthcare has created Uniform Guidance-compliant policies regarding research expenditures using federal funds; those policies will be implemented. Additionally, standard work instructions regarding the documentation to be completed and retained have been created and will be implemented. A process to review vendors for suspension or debarment prior to engaging with them will be implemented. Additionally, all staff involved in the process of procuring goods and services using federal funds in the research department will receive training on the Uniform Guidance and the allowable cost and procurement principles therein. Anticipated completion date: December 31, 2026 Responsible contact person: Matthew Hawthorne Foundation Awards – Norton Healthcare will develop, document, approve and implement comprehensive policies and standard work instructions addressing applicable Uniform Guidance requirements for foundation expenditures. The policies will establish requirements and internal controls for the administration, financial management, monitoring and close out of federal awards. Standard work instructions will also be created and implemented that provide detailed procedures to consistently execute and document the requirements. Anticipated completion date: December 31, 2027 Responsible contact person: Jane Brooks

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