Corrective Action Plans

Finding 576151 (2025-006)

Significant Deficiency 2025

IN

Reporting

The Agency acknowledges this error and agrees with the recommendations. With the completion of this audit, the Agency will be caught up after completing four audits in an 18 month time period. This current audit will be submitted by the required deadline and the next regular audit is scheduled to be...

The Agency acknowledges this error and agrees with the recommendations. With the completion of this audit, the Agency will be caught up after completing four audits in an 18 month time period. This current audit will be submitted by the required deadline and the next regular audit is scheduled to begin shortly after the close of FY 25-26.

View Audit 366061

Finding 576149 (2025-005)

Material Weakness 2025

Community Action of Southern Indiana

IN

Reporting

The Agency acknowledges this error and agrees with the recommendations. It is the Agency's opinion that this finding is a direct outcome of the reconciliation issues outlined in Findings 001-003. As those deficiencies are addressed systemically, the accuracy of SF-425 reports will be restored and ma...

The Agency acknowledges this error and agrees with the recommendations. It is the Agency's opinion that this finding is a direct outcome of the reconciliation issues outlined in Findings 001-003. As those deficiencies are addressed systemically, the accuracy of SF-425 reports will be restored and maintained.

View Audit 366061

Finding 575725 (2025-001)

Significant Deficiency 2025

Frontier Nursing University, Inc.

KY

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

Finding: The enrollment statuses in the National Student Loan Data System for students who took a Regular Academic Hiatus were incorrect during the time of their hiatus. Corrective Actions Taken or Planned: FNU will change the reported enrollment status of all students on a regular Academic Hiatus...

Finding: The enrollment statuses in the National Student Loan Data System for students who took a Regular Academic Hiatus were incorrect during the time of their hiatus. Corrective Actions Taken or Planned: FNU will change the reported enrollment status of all students on a regular Academic Hiatus (AH) from “Enrolled” to “Leave of Absence (LOA)” in the National Student Clearinghouse (NSC). Note that both status types indicate an enrolled status per NSC. To support this change, FNU will revise its internal procedures to ensure that students on a regular AH are coded as “Leave” in the Student Learning Management System. This status accurately reflects a temporary interruption in their program of study and aligns with enrollment reporting requirements. We will strengthen training for all staff involved in enrollment status reporting to ensure consistent understanding and proper implementation of the updated procedures. We believe these steps are important for improving the accuracy of our reporting and staying in compliance with federal student aid requirements. Estimated Completion Date: September 30, 2025 Responsible Personnel: Janice Ponstein, Director of Academic Records & Registrar

View Audit 365718

Finding 575602 (2025-004)

Significant Deficiency 2025

Village of Shelby

MI

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

Finding 2025-004: Coronavirus State and Local Fiscal Recovery Funds Reporting Procedures Type of Finding: Control U.S. Department of Treasury Pass-through Entities: The Right Place, Inc. and Michigan Department of Treasury. Assistance Listing Number: 21.027 Award Numbers: COVID-19 Revitaliza...

Finding 2025-004: Coronavirus State and Local Fiscal Recovery Funds Reporting Procedures Type of Finding: Control U.S. Department of Treasury Pass-through Entities: The Right Place, Inc. and Michigan Department of Treasury. Assistance Listing Number: 21.027 Award Numbers: COVID-19 Revitalization and Placemaking Grant, COVID-19 American Rescue Plan Act Award Year End: June 30, 2026 and December 31, 2026 Specific Requirement: (L.) Reporting Recommendation: The Village should follow established procedures to require the documented review and approval of both RAP and ARPA grant reports by an individual with adequate skills, knowledge, and experience prior to submission. Action Taken: The Village is implementing a new procedure requiring that ARPA grant reports be reviewed and approved by a designated reviewer before submission in addition to RAP grant reports. The reviewer, who must possess the appropriate skills, knowledge, and experience relevant to the report's content, will ensure that the information is accurate, complete, and compliant with organizational standards and regulatory requirements. Responsible Person and Anticipated Completion Date: The Village Clerk/Treasurer will oversee the implementation of this plan by February 28, 2026. If the Michigan Strategic Fund has questions regarding this plan, please call Phillip Morse at 231-861-4401.

View Audit 365594

Finding 575564 (2025-001)

Significant Deficiency 2025

Village Cooperative of Le Sueur

MN

Reporting Internal Control / Segregation of Duties

Recommendation: We recommend that the Cooperative continue to review the auditor prepared adjusting journal entries and financial statements with the intention of understanding and acceptance of responsibility for reporting under generally accepted accounting principles. Action Taken: The Cooperativ...

Recommendation: We recommend that the Cooperative continue to review the auditor prepared adjusting journal entries and financial statements with the intention of understanding and acceptance of responsibility for reporting under generally accepted accounting principles. Action Taken: The Cooperative will continue to review the auditor prepared adjusting journal entries and financial statements with the intention of understanding and acceptance of responsibility for reporting under generally accepted accounting principles. Planned Completion Date: Not Applicable.

View Audit 365551

Finding 575409 (2025-001)

Significant Deficiency 2025

Andrews University

MI

Student Financial Aid Reporting Matching / Level of Effort / Earmarking

Views of Responsible Officials and Planned Corrective Actions – The National Student Clearinghouse (NSC) Graduation and Enrollment Change Status’ submission calendar will be updated to reflect the necessary reporting timeline. The report will be completed after verification of graduation requirement...

Views of Responsible Officials and Planned Corrective Actions – The National Student Clearinghouse (NSC) Graduation and Enrollment Change Status’ submission calendar will be updated to reflect the necessary reporting timeline. The report will be completed after verification of graduation requirements and credentialing are completed by the Academic Record’s Department. Additional training will be provided to all members within the department to ensure timely submissions.

View Audit 365458

Finding 574879 (2025-002)

Material Weakness 2025

Aspermont Small Business Development Center, Inc.

TX

Reporting Internal Control / Segregation of Duties

Views of responsible official and planned corrective actions: The financial personnel of the Organization will document their review and approval of all grant related expenditures. Any issues brought to the attention of the Organization staff have been addressed and corrective actions have been take...

Views of responsible official and planned corrective actions: The financial personnel of the Organization will document their review and approval of all grant related expenditures. Any issues brought to the attention of the Organization staff have been addressed and corrective actions have been taken where applicable.

View Audit 365136

Finding 574782 (2025-002)

None 2025

Houston Heights Towers

TX

HUD Housing Programs Reporting Internal Control / Segregation of Duties

Audit Finding 2025-002: The regulatory agreement stipulates that all withdrawals from the Reserve for Replacement Account be supported by invoices and payments as proof of amounts expended. An invoice of $1,707 was duplicated while calculating the funds to be withdrawn from the Reserve for Replacem...

Audit Finding 2025-002: The regulatory agreement stipulates that all withdrawals from the Reserve for Replacement Account be supported by invoices and payments as proof of amounts expended. An invoice of $1,707 was duplicated while calculating the funds to be withdrawn from the Reserve for Replacement account . Response: Management agrees with the finding and has refunded $1,707 to the Reserve for Replacement Account on August 12, 2025.

View Audit 365069

Finding 574781 (2025-001)

None 2025

Houston Heights Towers

TX

HUD Housing Programs Reporting Equipment & Real Property Management

Audit Finding 2025-001: The regulatory agreement stipulates that all withdrawals exceeding $2,500 from the Reserve for Replacement Account need prior written consent of the lender. Several withdrawals totaling $108,111 for emergency repairs and improvements, to cover payroll, pay audit fees and for ...

Audit Finding 2025-001: The regulatory agreement stipulates that all withdrawals exceeding $2,500 from the Reserve for Replacement Account need prior written consent of the lender. Several withdrawals totaling $108,111 for emergency repairs and improvements, to cover payroll, pay audit fees and for other operating expenses were made from the Reserve for Replacement account without prior approval from the lender. Response: Management agrees with the finding, was aware of the requirement for prior approval and on April 30, 2025, and has obtained retroactive approval from the lender for the withdrawal of 108,111.

View Audit 365069

Finding 574780 (2025-002)

None 2025

Heights Towers Services Company

TX

HUD Housing Programs Reporting Matching / Level of Effort / Earmarking

Audit Finding 2025-002: During our testing of residual receipts account transactions, it was discovered that the Project had withdrawn $47,420 and transferred it back after 3 months. -Response: Management believed that including this expenditure in its request for withdrawal of funds from the reserv...

Audit Finding 2025-002: During our testing of residual receipts account transactions, it was discovered that the Project had withdrawn $47,420 and transferred it back after 3 months. -Response: Management believed that including this expenditure in its request for withdrawal of funds from the reserve for replacement account was sufficient. Management also promptly replaced the funds taken temporarily from the residual receipts account, once they received the funds from the reserve for replacement account controlled by the lender. In the future, management will make sure to obtain prior approval from HUD before making any withdrawals from the residual receipts account.

View Audit 365067

Finding 574779 (2025-001)

None 2025

Heights Towers Services Company

TX

HUD Housing Programs Reporting

Audit Finding 2025-001: During our testing of reserve for replacement account transactions, it was discovered that the Project had made deposits of an insufficient amount each month for 22 months through September 2024. -Response: The reserve for replacement account is controlled by the lender and ...

Audit Finding 2025-001: During our testing of reserve for replacement account transactions, it was discovered that the Project had made deposits of an insufficient amount each month for 22 months through September 2024. -Response: The reserve for replacement account is controlled by the lender and when the lender discovered the deficiency during the year ended May 31, 2025 a lumpsum amount was drafted from the Project's monthly payment to cover the shortfall. In future, Management will inform the lender of changes to the monthly required deposit to the reserve for replacement account made by HUD.

View Audit 365067

Finding 574031 (2025-001)

Significant Deficiency 2025

Lutheran Social Services of the South, Inc.

TX

Reporting

Grant accountants will review all new grant awards for reporting schedules at their inception to ensure that off-cycle reporting requirements are included in the calendar, and review that the reports are available in the Payment Management Services (PMS) system monthly and include all known reports ...

Grant accountants will review all new grant awards for reporting schedules at their inception to ensure that off-cycle reporting requirements are included in the calendar, and review that the reports are available in the Payment Management Services (PMS) system monthly and include all known reports due. Grants Manager will review the calendar monthly to ensure that it is maintained with accurate information and the reporting steps are being addressed.

View Audit 364616

Finding 572937 (2025-002)

Significant Deficiency 2025

Csi Residential, Inc.

CT

Questioned Costs HUD Housing Programs Reporting

Deposits required by HUD were not made during fiscal year 2025 to the reserve fund. Recommendation: CLA Recommends the Project enforce procedures that ensure deposits are made timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned i...

Deposits required by HUD were not made during fiscal year 2025 to the reserve fund. Recommendation: CLA Recommends the Project enforce procedures that ensure deposits are made timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: Management has made the missing deposit as of March 31, 2025. Name of the contact person responsible for corrective action: Laurie Rudman, Senior Vice President, CFO Planned completion date for corrective action plan: March 31, 2025

View Audit 363778 Questioned Costs: $1

Finding 572935 (2025-001)

Significant Deficiency 2025

Csi Residential, Inc.

CT

HUD Housing Programs Reporting Significant Deficiency

The Project had not timely reviewed the bank reconciliations for July 2024. Recommendation: CLA Recommends the Project review bank reconciliations timely and formerly. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to fin...

The Project had not timely reviewed the bank reconciliations for July 2024. Recommendation: CLA Recommends the Project review bank reconciliations timely and formerly. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: Management has retroactively reviewed all bank reconciliations that were not reviewed by the former management team as of March 31, 2025. Name of the contact person responsible for corrective action: Laurie Rudman, Senior Vice President, CFO Planned completion date for corrective action plan: March 31, 2025

View Audit 363778

Finding 572429 (2025-001)

Significant Deficiency 2025

Regis University

CO

Student Financial Aid Special Tests & Provisions Matching / Level of Effort / Earmarking

Finding 2025-001 Personnel Responsible for Corrective Action: Deborah Vinnola, Registrar Anticipated Completion Date: September 30, 2025 Corrective Action Plan: The Office of the Registrar has put into place a more detailed corrective action plan regarding the finding of delayed enrollment and non...

Finding 2025-001 Personnel Responsible for Corrective Action: Deborah Vinnola, Registrar Anticipated Completion Date: September 30, 2025 Corrective Action Plan: The Office of the Registrar has put into place a more detailed corrective action plan regarding the finding of delayed enrollment and non-enrollment reporting to NSLDS through NSC. The Office of the Registrar has adjusted the Degree Verify submission from every 45 days to every 30 days to NSC to ensure graduation dates are reported in a more timely fashion for NSLDS within the required 60 days for financial aid. Starting Summer 2025, the Office of the Registrar has begun inactivating academic programs for students who have not had registration activity within the last two to three academic years to ensure that they are not reported as enrolled to NSC/NSLDS. NSC Enrollment Reporting will continue to be submitted every 30 days and the Office of the Registrar has worked to review the reporting criteria using terms and not semesters to better report active enrollment in current courses. The Ellucian Graduation Application form and process is in the final stages of testing which will eliminate completely the need to add a pseudo course with a future date after the student’s current program has been inactivated or graduated. The Office of the Registrar will be more proactive with the colleges for identifying students who have not graduated within the six year (undergraduate), four year (graduate) and certificate time frames by working with the appropriate dean’s offices. This should eliminate those students who have completed their coursework; close to completing their coursework but were never reviewed by their advisor/program for graduation. Since Regis uses the end date of the last course completed, the Office of the Registrar will work with advising units to review the lists to increase a better reporting of degree completion.

View Audit 363564

Finding 570974 (2025-001)

Significant Deficiency 2025

Village Cooperative of Hutchinson

MN

Reporting Internal Control / Segregation of Duties

Recommendation: We recommend that the Cooperative continue to review the auditor prepared adjusting journal entries and financial statements with the intention of understanding and acceptance of responsibility for reporting under generally accepted accounting principles. Action Taken: The Cooperativ...

Recommendation: We recommend that the Cooperative continue to review the auditor prepared adjusting journal entries and financial statements with the intention of understanding and acceptance of responsibility for reporting under generally accepted accounting principles. Action Taken: The Cooperative will continue to review the auditor prepared adjusting journal entries and financial statements with the intention of understanding and acceptance of responsibility for reporting under generally accepted accounting principles. Planned Completion Date: Not Applicable.

View Audit 361899

Finding 570847 (2025-001)

Significant Deficiency 2025

Cornish College of the Arts and Cornish Foundation

WA

Student Financial Aid Reporting Significant Deficiency

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

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the College review its reporting procedures to ensure the 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: The student that was incorrectly coded as FWS funds, the funds were immediately reclassified as institutional aid. Since Cornish, did not draw down all FWS funding, it did not impact the G5 drawdown and no needs needed to be returned. Going forward, a higher-level review will be conducted for students with high SAI and low need to ensure that no need-based funds, if not eligible, are in the packaging. This review, will take place after the initial counselor review, but before a student can begin working in the FWS program. This third check will ensure that these types of files are again reviewed in a timely manner and no over awards will happen in the future. Name(s) of the contact person(s) responsible for corrective action: Sara Drummond Planned completion date for corrective action plan: June 16th, 2025

View Audit 361771

Finding 568853 (2025-001)

Significant Deficiency 2025

Realife Cooperative of Bloomington

MN

Reporting Internal Control / Segregation of Duties

Recommendation: We recommend that the Cooperative continue to review the auditor prepared adjusting journal entries and financial statements with the intention of understanding and acceptance of responsibility for reporting under generally accepted accounting principles. Action Taken: The Cooperativ...

Recommendation: We recommend that the Cooperative continue to review the auditor prepared adjusting journal entries and financial statements with the intention of understanding and acceptance of responsibility for reporting under generally accepted accounting principles. Action Taken: The Cooperative will continue to review the auditor prepared adjusting journal entries and financial statements with the intention of understanding and acceptance of responsibility for reporting under generally accepted accounting principles. Planned Completion Date: Not Applicable.

View Audit 360579

Finding 1225668 (2024-012)

Material Weakness 2024

State of Kosrae

FM

Reporting § 200.303

Finding Number 2024-012 (Repeat 2023-011) Corrective Action Plan Reporting — AL 15.875 (U.S. Department of the Interior) • Establish a reporting calendar identifying each SF-425 due date, and issue a formal request and follow-up protocol to the FSM State Governments requiring submission of their qua...

Finding Number 2024-012 (Repeat 2023-011) Corrective Action Plan Reporting — AL 15.875 (U.S. Department of the Interior) • Establish a reporting calendar identifying each SF-425 due date, and issue a formal request and follow-up protocol to the FSM State Governments requiring submission of their quarterly reports sufficiently in advance of the consolidated due date. • Designate a responsible officer to compile the consolidated SF-425, reconcile it to the accounting records, and obtain documented supervisory review before submission to OIA by the applicable due date. • Where a state report remains outstanding at the due date, submit the SF-425 on the basis of the best available data by the due date and file a revised report upon receipt of the outstanding submission, documenting the communication with OIA. • Escalate persistent non-submission by a state to the Office of Compact Management and address it through the subrecipient agreement and the subrecipient monitoring framework being established under Finding 2024-013. • Maintain a file of all reports submitted together with the supporting reconciliations for grant oversight and audit purposes. Anticipated Completion Date 9/30/2027 Responsible Person (Contact Details) Ms. Julyn Lawrence Email: julyn.lawrence@gov.fm Ms. Senny Phillip Assistant Secretary, Investment Email: senny.phillip@gov.fm

View Audit 408530

Finding 1225613 (2024-005)

Material Weakness 2024

GROW HAYS INC

KS

Reporting

We acknowledge and concur with the auditor’s finding. Management will establish a formal process to track Uniform Guidance and Federal Audit Clearinghouse reporting deadlines to ensure that future reporting packages and data collection forms are completed and submitted within the required timeframe....

We acknowledge and concur with the auditor’s finding. Management will establish a formal process to track Uniform Guidance and Federal Audit Clearinghouse reporting deadlines to ensure that future reporting packages and data collection forms are completed and submitted within the required timeframe. Contact Person Responsible for Corrective Action: Doug Williams Anticipated Completion Date: September 1, 2026

View Audit 408509

Finding 1225612 (2024-004)

Material Weakness 2024

GROW HAYS INC

KS

Subrecipient Monitoring Material Weakness Reporting

We acknowledge and concur with the auditor’s finding. Management will strengthen its controls over grant expenditure reporting to ensure that expenditure reports submitted to grantors reflect only expenditures actually incurred during the reporting period. Construction costs will be reported when th...

We acknowledge and concur with the auditor’s finding. Management will strengthen its controls over grant expenditure reporting to ensure that expenditure reports submitted to grantors reflect only expenditures actually incurred during the reporting period. Construction costs will be reported when the related work is performed and costs are incurred, rather than when contracts are executed, and expenditures will be reviewed for allowability under the applicable grant agreement before inclusion in a report. All expenditure reports will be reconciled to the accounting records and independently reviewed and approved prior to submission to the grantor. Contact Person Responsible for Corrective Action: Doug Williams Anticipated Completion Date: September 1, 2026

View Audit 408509

Finding 1225604 (2024-005)

Material Weakness 2024

Iroquois County, Illinois

IL

Reporting § 200.303 § 200.329

Coronavirus State and Local Fiscal Recovery Funds – Assistance Listing No. 21.027 – Reporting Recommendation: We recommend the County perform a reconciliation of the project details reported to the expenditure detail and procurement amounts awarded detail used to support the SEFA, and these reconcil...

Coronavirus State and Local Fiscal Recovery Funds – Assistance Listing No. 21.027 – Reporting Recommendation: We recommend the County perform a reconciliation of the project details reported to the expenditure detail and procurement amounts awarded detail used to support the SEFA, and these reconciliations be reviewed, to ensure accuracy and completeness of the reporting. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The county will perform a reconciliation of the project details reported to the expenditure detail and procurement amounts awarded detail used to support the SEFA, and these reconciliations be reviewed, to ensure accuracy and completeness of the reporting. Name of the contact persons responsible for corrective action: Jill Johnson, Finance Manager, and Department Heads and Elected Officials Planned completion date for corrective action plan: November 30, 2025

View Audit 408486

Finding 1225599 (2024-002)

Material Weakness 2024

Community High School District 218

IL

Reporting Material Weakness § 200.502 § 200.510

Finding 2024-002: Preparation of the Schedule of Expenditures of Federal Awards, Material weakness/other matter noncompliance: Corrective Actions Taken or Planned: Management will review its year-end processes and its grant-related internal controls with a specific focus on accrual-basis auditing re...

Finding 2024-002: Preparation of the Schedule of Expenditures of Federal Awards, Material weakness/other matter noncompliance: Corrective Actions Taken or Planned: Management will review its year-end processes and its grant-related internal controls with a specific focus on accrual-basis auditing requirements to ensure that such errors do not occur in the future. Anticipated completion date is June 30, 2025, by the Business Office, Anthony Corsi, Business Manager and Chief of School Business Official

View Audit 408477

Finding 1225563 (2024-002)

Material Weakness 2024

Capital Metropolitan Transportation Authority

TX

Reporting Internal Control / Segregation of Duties § 200.502 § 200.510

To address the finding, the Authority has implemented corrective actions that include establishing a formal year-end SEFA preparation and review process involving Accounting and Grant Program Mangers; reconciling federal expenditures reported on the SEFA to the general ledger and year end accruals, ...

To address the finding, the Authority has implemented corrective actions that include establishing a formal year-end SEFA preparation and review process involving Accounting and Grant Program Mangers; reconciling federal expenditures reported on the SEFA to the general ledger and year end accruals, reviewing active federal awards at fiscal year-end to identify eligible expenditures that may not have been reported; Revising the Grants Management Procedures Manual to formalize year-end cutoff, review, reconciliation, and approval procedures prior to SEFA issuance. These procedures will be incorporated into the FY26 year-end close and reporting process.

View Audit 408444

Finding 1225547 (2024-005)

Material Weakness 2024

The Simple Foundation

NE

Reporting Subrecipient Monitoring § 200.303

1. Provide additional training to accounting personnel on the updated accounting system (Aplos) and the current chart of accounts. Target: August 31, 2026. 2. Implement a review process to verify proper coding of expenditures, particularly following system changes or chart-of-account updates, with s...

1. Provide additional training to accounting personnel on the updated accounting system (Aplos) and the current chart of accounts. Target: August 31, 2026. 2. Implement a review process to verify proper coding of expenditures, particularly following system changes or chart-of-account updates, with sign-off by the Finance Director. Target: September 31, 2026. 3. Perform periodic (at least quarterly) reconciliations and monitoring procedures between the Aplos general ledger and the grant financial reporting system (Airtable/Euna) to detect and correct misclassifications in a timely manner, beginning Q3 2026.

View Audit 408441

Corrective Action Plans

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