Corrective Action Plans

Finding 1215408 (2025-001)

Material Weakness 2025

CA

Subrecipient Monitoring Reporting Significant Deficiency § 200.329

Management concurs with the finding and will ensure that records are maintained to indicate timely submission of reports.

View Audit 401993

Finding 1215381 (2025-001)

Material Weakness 2025

Summit Community Care Clinic, Inc.

CO

Internal Control / Segregation of Duties Subrecipient Monitoring Eligibility

Federal Program: Consolidated Health Centers Grant Assistance Listing No. 93.224 & 93.527 Recommendation: Our auditors recommended the Organization to review internal controls in regards to the determination, recording, and monitoring of the sliding fee process to ensure that appropriate sliding fee...

Federal Program: Consolidated Health Centers Grant Assistance Listing No. 93.224 & 93.527 Recommendation: Our auditors recommended the Organization to review internal controls in regards to the determination, recording, and monitoring of the sliding fee process to ensure that appropriate sliding fee rates/categories are utilized for each sliding fee encounter and that all documentation supporting the sliding discount provided is retained. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization identified challenges and errors in the prior eligibility workflow after the 2024 audit. Over the course of 2025, the Organization experienced turnover in management and front desk personnel in the dental department. The workflows were modified when the new eligibility manager joined the Organization. Upon hiring a new dental manager and patient access (front desk) manager, workflows and procedures were also modified to ensure the front desk reviews insurance coverage upon check in. The system is set up so the Organization does not need manually adjust all claims, so the claim was auto-posted for the visit identified above. Our corrective action plan is already established, although it was put into place after the date of service of the visit identified above. If the U.S. Department of Health and Human Services has questions regarding this plan, please call Amanda Craig, CFO, at 970-710-5062.

View Audit 401937

Finding 1215370 (2025-003)

Material Weakness 2025

Edcouch-Elsa Independent School District

TX

Allowable Costs / Cost Principles Cash Management Significant Deficiency § 200.403

Finding 2025-003 Duplicate expenditures charged to same grant Recommendation: We recommend the District establish and maintain proper review procedures for expenditures charged to grants prior to submission for reimbursement. Management’s View: The District will strengthen internal controls over pay...

Finding 2025-003 Duplicate expenditures charged to same grant Recommendation: We recommend the District establish and maintain proper review procedures for expenditures charged to grants prior to submission for reimbursement. Management’s View: The District will strengthen internal controls over payroll expenditures charged to federal grants by implementing a standard operating procedure that will be conducted by the Payroll Specialist of verifying payroll distribution reports, funding codes, and supporting documentation prior to submission for payment. Before each payroll is finalized, the payroll specialist will run a payroll report that will be generated and sorted by employee to verify that no duplicate charges have been applied to the same grant within the same payroll period. This review will ensure that all costs charged to federal grants during the pay period are accurate, allowable, properly coded, and not duplicated. No payroll adjustments will be keyed until timesheets have been verified against previously submitted timesheets and that they are reviewed to confirm that prior entries have not already been charged to the same grant. Additionally, a secondary review by the accountant will be conducted prior to finalizing grant-related payrolls. Effective March 1, 2026, the Payroll Accountant and Chief Financial Officer will review grant-related payroll transactions to ensure accuracy, proper funding allocation, and compliance with applicable federal requirements. Effective Date: March 1, 2026 Contact Person: Sylvia Garza, Chief Financial Officer, Edcouch-Elsa Independent School District

View Audit 401915

Finding 1215352 (2025-006)

Material Weakness 2025

City of New Haven

CT

Reporting Eligibility Significant Deficiency § 200.512

Late Single Audit Submission Description of Finding Uniform Guidance 2 CFR 200.512(a) requires that each organization’s audit must be completed and the data collection form and reporting package should be submitted within the earlier of 30 days after receipt of the auditor’s report or nine months af...

Late Single Audit Submission Description of Finding Uniform Guidance 2 CFR 200.512(a) requires that each organization’s audit must be completed and the data collection form and reporting package should be submitted within the earlier of 30 days after receipt of the auditor’s report or nine months after the end of the audit period. The Single Audit packages for the City’s fiscal years 2022-2025, were not submitted timely to the Federal Audit Clearinghouse. Statement of Concurrence or Nonconcurrence Management agrees with the finding. Corrective Action Management will review existing processes and controls related to audit readiness and financial reporting to ensure that all required financial reports are submitted timely. The City will implement a formal audit and Single Audit submission calendar with defined internal deadlines, assign clear staff responsibilities for preparing and submitting required documents, and use a centralized tracker to monitor audit milestones and ensure timely submission to the Federal Audit Clearinghouse. Staff involved in federal reporting will also receive annual training on Single Audit requirements to ensure compliance with federal timelines going forward. Name of Contact Person Shannon McCue, City Budget Director Projected Completion Date June 30, 2026

View Audit 401899

Finding 1215070 (2025-001)

Material Weakness 2025

McLeod Health

SC

Period of Performance Procurement, Suspension & Debarment Cash Management § 200.303

Condition: The Organization was reimbursed $22,968 under the grant award for amounts incurred subsequent to the performance year of the grant. The control in place to review expenditures was not effective in identifying expenditures that were outside the grant period. Planned Corrective Action: The ...

Condition: The Organization was reimbursed $22,968 under the grant award for amounts incurred subsequent to the performance year of the grant. The control in place to review expenditures was not effective in identifying expenditures that were outside the grant period. Planned Corrective Action: The Organization will implement enhanced review procedures of federal expenditures sought for reimbursement to better align with the underlying accounting treatment. Contact person responsible for corrective action: David Anderson Anticipated Completion Date: September 30, 2026

View Audit 401785

Finding 1215069 (2025-001)

Material Weakness 2025

Lee County, Florida

FL

Allowable Costs / Cost Principles HUD Housing Programs Significant Deficiency § 200.302 § 200.303 § 200.403

Community Development Block Grants Cluster Entitlements/Special Purpose – Assistance Listing No. 14.218 Recommendation: It is recommended the County modify its procedure to include: • Improve reconciliation procedures to verify hours per pay period recorded in quarterly spreadsheet agrees to hours r...

Community Development Block Grants Cluster Entitlements/Special Purpose – Assistance Listing No. 14.218 Recommendation: It is recommended the County modify its procedure to include: • Improve reconciliation procedures to verify hours per pay period recorded in quarterly spreadsheet agrees to hours recorded in the KRONOS system. • Record grant wages using the pay rate at the beginning of the quarter if recorded on a quarterly basis or use pay rates for each pay period if recorded on a pay period basis. Explanation of disagreement with audit finding: Management concurs with the auditor’s recommendations. Action taken in response to finding: • Document the audit process in a formalized SOP and cross train all reviewers from SRGA Admin, Budget, and Fiscal. • Create a checklist to accompany each personnel draw to ensure that after rates are verified that SRGA Admin certify that no RPAs or pay adjustments were approved during the pay periods reported and if there were, a second pay rate is entered for that draw and hours are split according to accurate rates/dates. • Document the cure process in the SOP to ensure that any errors found after the fact will be corrected with HUD to remain compliant and to ensure that no funds drawn in error are retained. • Include a date verification process prior to submission of the draw to ensure that staff did not duplicate any dates. This verification will be an audit of the Time Tracking Review completed by Admin staff. Ongoing training and coaching will be administered should duplicate entries be found on final draw reports. • Audit of all personnel draws for both allocations of CDBG-DR grants will be completed using the new SOP and verification tools before the end of FY2026. Name of the contact person responsible for corrective action: Nicole Turner, Director Planned completion date for corrective action plan: The above action plan will be implemented immediately; an audit of all personnel draws will be conducted using new process and checklists by the end of FY2026.

View Audit 401782

Finding 1215066 (2025-001)

Material Weakness 2025

Central Valley School District No. 356

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Internal Control / Segregation of Duties

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Central Valley School District No. 356 September 1, 2024 through August 31, 2025 This schedule presents the corrective action the District is planning to take for findings included in this report in accordance with Title 2 U.S. Code...

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Central Valley School District No. 356 September 1, 2024 through August 31, 2025 This schedule presents the corrective action the District is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2025-001 Finding caption: The District did not have adequate internal controls for ensuring compliance with federal eligibility requirements. Name, address, and telephone of District contact person: Mathew Knott, Director of Business Services 2218 N. Molter Road Liberty Lake, WA 99019 509-558-5437 Corrective action the auditee plans to take in response to the finding: The District does agree that one school with a poverty rate above 75% was not served. However, OSPI reviewed and approved the District’s Title I application, including our proposed ranking and allocation methodology, and no concerns or comments were raised during that review process. Additionally, the District was able to provide alternative snapshot dates demonstrating that no individual school was truly above the 75% threshold. Once the District became aware of the issue, we proactively contacted OSPI to determine whether any corrective action was necessary for the current year. OSPI’s guidance was that no changes or corrections were required for the current year and that adjustments should instead be implemented in the following year if a school exceeded the 75% threshold. Based on that direction from OSPI, the District did not make current-year corrections. Given these circumstances, including OSPI’s prior approval of the application and subsequent guidance that no corrective action was required, the District respectfully disagrees with the State Auditor’s Office conclusion that this matter rises to the level of a Finding rather than being addressed through a Management Letter. We consider this matter to be resolved as no school going into the 2025-2026 fiscal year was above the 75% threshold. Anticipated date to complete the corrective action: 8/31/2025

View Audit 401770

Finding 1215059 (2025-002)

Material Weakness 2025

Los Angeles Homeless Services Authority

CA

Allowable Costs / Cost Principles Significant Deficiency Internal Control / Segregation of Duties § 200.303 § 200.430

Continuum of Care Assistance Listing No. 14.267 Payroll Disbursements Recommendation: We recommend that LAHSA implement procedures to ensure that timesheet approval is documented timely. Explanation of disagreement with audit finding: There is no disagreement withthe audit finding. Action taken in r...

Continuum of Care Assistance Listing No. 14.267 Payroll Disbursements Recommendation: We recommend that LAHSA implement procedures to ensure that timesheet approval is documented timely. Explanation of disagreement with audit finding: There is no disagreement withthe audit finding. Action taken in response to finding: LAHSA has enhanced its internal controls over timesheet approvals to ensure timely documentation. Timesheet approval status reports are reviewed on a weekly basis during Chief level meetings to monitor compliance. Timesheets not approved within two days of the established deadline are escalated to the respective Chief and Deputy Chief for immediate follow-up. If timesheets remain unapproved after an additional two days, the matter is further escalated to the CEO, for prompt resolution. These procedures establish clear accountability and escalation protocols to ensure timely approval of timesheets Names of the contact persons responsible for corrective action: Gita O'Neill, Keshia Douglas, Christopher Williams, and Paul Rubenstein. Planned completion date for corrective action plan: Implemented

View Audit 401769

Finding 1214967 (2025-001)

Material Weakness 2025

Preschool Promise, Inc.

OH

Procurement, Suspension & Debarment Significant Deficiency

Corrective Action: Preschool Promise, Inc. recognizes the importance of maintatining written procurement procedures in compliance with Uniform Guidance. In response to this finding, management has taken the following corrective actions. Developed and adopted a written procurement policy compliant wi...

Corrective Action: Preschool Promise, Inc. recognizes the importance of maintatining written procurement procedures in compliance with Uniform Guidance. In response to this finding, management has taken the following corrective actions. Developed and adopted a written procurement policy compliant with 2 CFR Part 200, 200.317-200-327. The policy defines procurement methods and applicable thresholds, documentation standards, competitive bidding requirements, conflict-of-interest provisions, contract oversight expectations, and record retention requirements. Implemented the policy orgainzation-wide for procurements funded by federal awards to promote consistent applicaiton and compliance. Provided training to management and staff responsible for purchasing and vendor selection. Established procedures to review and update the procurement policy periodically to ensure ongoing compliance with federal regulations. These actions are intended to strengthen internal controls over procurement and prevent recurrence of this finding in future periods. Responsible party Robyn Lightcap Executive Director and Marie Giffen Senior Director of Finance. Anticipated Completion Date: Completed during fiscal year 2026

View Audit 401736

Finding 1214894 (2025-001)

Material Weakness 2025

American Academy of Addiction Psychiatry, Inc.

RI

Significant Deficiency Internal Control / Segregation of Duties § 200.512

Audit Finding Reference: 2025-001 Timely Filing of Single Audit Report Planned Corrective Action: The Organization understands it is the responsibility of the Organization to ensure the Single Audit Report is filed timely, At the beginning of the audit process, the Organization will establish an agr...

Audit Finding Reference: 2025-001 Timely Filing of Single Audit Report Planned Corrective Action: The Organization understands it is the responsibility of the Organization to ensure the Single Audit Report is filed timely, At the beginning of the audit process, the Organization will establish an agreed timeline with its auditors and the Organization will produce documentation consistent with that timeline. Planned Implementation Date of Corrective Action: April 21, 2026 Person Responsible for Corrective Action: Mike Stuard, Director of Finance

View Audit 401656

Finding 1214879 (2025-001)

Material Weakness 2025

Newburyport Housing Authority

MA

HUD Housing Programs Internal Control / Segregation of Duties Subrecipient Monitoring

CORRECTIVE ACTION PLAN 2025-001- REPORTING Significant Deficiency/Noncompliance Auditee’s Response and Planned Corrective Action The Newburyport Housing Authority submitted audit documentation late due to the Executive Director, Tracy Watson, being on medical leave since August 2025. During this tim...

CORRECTIVE ACTION PLAN 2025-001- REPORTING Significant Deficiency/Noncompliance Auditee’s Response and Planned Corrective Action The Newburyport Housing Authority submitted audit documentation late due to the Executive Director, Tracy Watson, being on medical leave since August 2025. During this time, staff experienced difficulties obtaining the required documentation needed to complete the audit in a timely manner. The NHA Board of Commissioners named Kim Kane as Interim Executive Director during Tracy Watson’s absence. Kim Kane will ensure all documentation is submitted in full and in a timely manner. Planned Implementation Date of Corrective Action: Immediately Person Responsible for Corrective Action: Kim Kane, Interim Executive Director

View Audit 401612

Finding 1214868 (2025-002)

Material Weakness 2025

Town of Lincoln

RI

Procurement, Suspension & Debarment Significant Deficiency Internal Control / Segregation of Duties § 200.303 § 200.318 § 200.326

Significant Deficiency in Internal Control over Compliance, Other Matters Description of Finding Lincoln Public Schools procurement standards do not include the essential elements as outlined in 2 CFR sections 200.303, and 200.318 through 200.326 within Uniform Guidance. Statement of Concurrence or ...

Significant Deficiency in Internal Control over Compliance, Other Matters Description of Finding Lincoln Public Schools procurement standards do not include the essential elements as outlined in 2 CFR sections 200.303, and 200.318 through 200.326 within Uniform Guidance. Statement of Concurrence or Nonconcurrence Management concurs with the finding. Corrective Action Management will update Lincoln Public Schools’ procurement policies to include all essential elements to be in compliance with Uniform Guidance.

View Audit 401582

Finding 1214863 (2025-004)

Material Weakness 2025

Saraland Manor, Inc.

MS

Internal Control / Segregation of Duties Subrecipient Monitoring HUD Housing Programs

We agree with Finding 2025-004 and the recommendations described above. We will work to implement additional controls over financial reporting to ensure the financials are submitted in a timely manner.

View Audit 401563

Finding 1214776 (2025-001)

Material Weakness 2025

Catholic Charities of the Diocese of St. Cloud

MN

Eligibility Significant Deficiency

Foster Grandparent Program – Assistance Listing No. 94.011 Recommendation: The organization should ensure proper eligibility verifications are performed for all current and potential program participants to ensure all program participants are eligible. Explanation of disagreement with audit finding:...

Foster Grandparent Program – Assistance Listing No. 94.011 Recommendation: The organization should ensure proper eligibility verifications are performed for all current and potential program participants to ensure all program participants are eligible. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization will ensure moving forward that eligibility verifications are performed for all participants in a timely manner as specified by the grant requirements. Name(s) of the contact person(s) responsible for corrective action: Andrew Johannes, CFO Planned completion date for corrective action plan: 12/31/2026

View Audit 401515

Finding 1214745 (2025-002)

Material Weakness 2025

Woods Hole, Martha's Vineyard and Nantucket Steamship Authority

MA

Internal Control / Segregation of Duties Significant Deficiency

2025-002: Inadequate Controls Related to Wage Rate Requirements Condition: Of the five contracts included within major program 20.205 in the current year, two were subject to the wage rate requirement. These two contracts accounted for $1.9M of the $4M total program expenditures. In total there were...

2025-002: Inadequate Controls Related to Wage Rate Requirements Condition: Of the five contracts included within major program 20.205 in the current year, two were subject to the wage rate requirement. These two contracts accounted for $1.9M of the $4M total program expenditures. In total there were 13 weeks of payroll included within the two contracts, of which three were selected for testing. The internal control failure occurred due to the timing of the invoices in relation to year end close procedures. Payment was accelerated to capture both the expense and cash outlay within the same fiscal year overlooking the need to confirm the receipt of the certified payrolls. Corrective Action Taken or Planned: Prior to submitting any invoices that are reimbursable with federal funds, the accounting staff will verify in writing that the vendor’s certified payrolls have been received and reviewed. Additionally, a newly created Federally Funded Invoice and Payment Compliance Checklist form has been created. This form will be completed and submitted with the approved invoice for payment. Person Responsible for Corrective Action: Mark Rozum, Treasurer/Comptroller Anticipated Completion Date for Corrective Action: The corrective action has already started and will be fully implemented within 30 days in response to the auditor’s recommendations.

View Audit 401486

Finding 1214723 (2025-001)

Material Weakness 2025

South Coastal Counties Legal Services, Inc. and Affiliate

MA

Special Tests & Provisions Significant Deficiency Internal Control / Segregation of Duties

April 23, 2026 Cognizant or Oversight Agency for Audit South Coastal Counties Legal Services, Inc. and Affiliate respectfully submits the following corrective action plan for the year ended December 31, 2024. Name and address of independent public accounting firm: AAFCPAs, Inc. 50 Washington Street ...

April 23, 2026 Cognizant or Oversight Agency for Audit South Coastal Counties Legal Services, Inc. and Affiliate respectfully submits the following corrective action plan for the year ended December 31, 2024. Name and address of independent public accounting firm: AAFCPAs, Inc. 50 Washington Street Westborough, MA 01581 Audit Period: January 1, 2025 - December 31, 2025 The findings from April 22,2025 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDING - FINANCIAL STATEMENT AUDIT FINDING SIGNIFICANT DEFICIENCY 2024-001 Seperation of Justice Center Recommendation: We recommend management examine their internal processes and policies on how activities for both entities are seperately accounted for to ensure proper separation consistent with LSC requirements. We understand management has submitted a correction action plan and has been working with LSC and has already implemented several recommendations from the review and is expected to finalize and implement any remaining required recommendations in 2026. We further understand that LSC has not demanded a formal deadline for completion of the Program Integrity Review and the Organization is not unreasonably delayed in its implementation of any corrective actions. Action Taken: SCCLS prepared and developed a corrective action plan with LSC and has met with LSC on a bi-weekly basis working with LSC to ensure that compliance with the corective action plan will result in adequate separation between entities under Title 45 of the Code of Federal Regulations. Mulitple aspects of the plan has been implemented, with full compliance expected in 2026. FINDING - FEDERAL AWARD PROGRAM AUDIT SIGNIFICANT DEFICIENCY LEGAL SERVICES CORPORATION 2024-001 Seperation of the Justice Center The significant deficiency relates to the Federal Funds received from Legal Services Corporation (LSC), Basic Field Grant, grant recipient #122087, under assistance listing number 09.112087. Recommendation: We recommend management examine their interal processes and policies on how activies for both entities are separately accounted for to ensure proper separation consistent with LSC requirements. We understand management has submitted a corrective action plan and has been working with LSC and has already implemented several recommendations from the review and is expected to finalize and implement any remaining required recommendations in 2025. We further understand that LSC has not demanded a formal deadline for completion of the Program Integrity Review and the the Organization is not unreasonably delayed in its implementation of any corrective actions. Action Taken: SCCLS prepared and develiped a corrective action plan with LSC and has met with LSC on a bi-weekly basis working with LSC to enure that compliance with the correction action plan with result in adequate separation between entities under Title 45 of the Code of Fedearl Regulations. Multiple aspects of the plan have been implemented, with full compliance expected in 2026. If Legal Services Corporation has questions regarding this plan, please call Christopher Oldi, Executive Director at (774) 488-5950 2023-001 Seperation of the Justice Center The significant deficiency relates to the Federal Funds received from Legal Services Corporation (LSC), Basic Field Grant, grant recipient #122087, under assistance listing number 09.112087. Recommendation: We recommend management examine their interal processes and policies on how activies for both entities are separately accounted for to ensure proper separation consistent with LSC requirements. We understand management has submitted a corrective action plan and has been working with LSC and has already implemented several recommendations from the review and is expected to finalize and implement any remaining required recommendations in 2025. We further understand that LSC has not demanded a formal deadline for completion of the Program Integrity Review and the the Organization is not unreasonably delayed in its implementation of any corrective actions. Action Taken: SCCLS prepared and develiped a corrective action plan with LSC and has met with LSC on a bi-weekly basis working with LSC to enure that compliance with the correction action plan with result in adequate separation between entities under Title 45 of the Code of Fedearl Regulations. Multiple aspects of the plan have been implemented, with full compliance expected in 2026. If Legal Services Corporation has questions regarding this plan, please call Christopher Oldi, Executive Director at (774) 488-5950 Sincerely yours, Christopher Oldi Executive Director

View Audit 401473

Finding 1214672 (2025-002)

Material Weakness 2025

Mental Health & Addiction Association of Oregon

OR

Reporting Significant Deficiency

Findings – Federal Award 2025-002 Finding Audited Financial Statements Late Filing – Noncompliance and Significant Deficiency in Controls Over Compliance Context: The Organization did not file the audited financial statement and related reports before their specified due dates. Management did not me...

Findings – Federal Award 2025-002 Finding Audited Financial Statements Late Filing – Noncompliance and Significant Deficiency in Controls Over Compliance Context: The Organization did not file the audited financial statement and related reports before their specified due dates. Management did not meet the year-end reporting due dates required by funders and regulations. Recommendation: The Organization should review the program requirements and implement contingency plans to ensure that year-end reporting requirements are met. The Organization personnel should communicate with funders throughout the year to ensure that the federal programs are properly identified and any changes in funding mix are received and documented contemporaneously. This will allow the Organization to provide timely and accurate information for the annual audit. Action Taken: As a subrecipient of braided Federal/non-Federal funding, MHAO is wholly reliant on accurate revenue confirmations from our State and County funders. Corrective Action: All contracts are now reviewed by the Finance Director and Senior Financial Analyst for ALN numbers, and stored centrally in the finance drive. Responsible Official: Zach Brooks, Finance Director Planned Completion Date: June 30, 2026.

View Audit 401407

Finding 1214630 (2025-002)

Material Weakness 2025

BAGDAD UNIFIED SCHOOL DISTRICT NO. 20

AZ

Special Tests & Provisions Subrecipient Monitoring Significant Deficiency § 200.303

The District will establish a system of internal controls to ensure wage rate requirements are included in construction contracts funded by Federal awards, and certified payroll reports are obtained from contractors to verify compliance with federal prevailing wage requirements.

View Audit 401322

Finding 1214601 (2025-002)

Material Weakness 2025

TOWN OF STERLING

MA

Subrecipient Monitoring Allowable Costs / Cost Principles Procurement, Suspension & Debarment

Condition: The Town has not documented in writing its policies regarding federal awards. Corrective Action Planned: The Town is currently working on the policy. Anticipated Completion Date: Fiscal year 2027 Contact: Fred Aponte, Town Accountant

View Audit 401275

Finding 1214570 (2025-006)

Material Weakness 2025

Municipality of Coamo

PR

Reporting Significant Deficiency

COMMONWEALTH OF PUERTO RICO MUNICIPALITY OF COAMO Corrective Action Plan For the Fiscal Year Ended June 30, 2025 _____________________________________________________________________________________________________________________ Audit Report: Reports on Compliance and Internal Control in Accordanc...

COMMONWEALTH OF PUERTO RICO MUNICIPALITY OF COAMO Corrective Action Plan For the Fiscal Year Ended June 30, 2025 _____________________________________________________________________________________________________________________ Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and OMB Super Circular Uniform Guidance Audit Period: July 1, 2024 – June 30, 2025 Fiscal Year: 2024-2025 Principal Executive: Hon. Juan C. García Padilla, Mayor Contact Person: Mrs. Miraisa David Esparra, Finance and Budget Director Phone: (787) 825-1150 Original Finding Number: 2025-006 Statement of Concurrence or Non concurrence: We concur with the finding. Corrective Action: We concur with the finding. The preparation of the financial statements for the fiscal year ending June 30, 2026, has begun. In addition, the progress of the audit will be continuously monitored with the external auditors hired by the Municipality to ensure that they are issued on or before March 30, 2027. Implementation Date: June 30, 2026 Responsible Person: Mrs. Miraisa David Esparra Finance Department Director

View Audit 401230

Finding 1214568 (2025-005)

Material Weakness 2025

Municipality of Coamo

PR

Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles Significant Deficiency

COMMONWEALTH OF PUERTO RICO MUNICIPALITY OF COAMO Corrective Action Plan For the Fiscal Year Ended June 30, 2025 _____________________________________________________________________________________________________________________ Audit Report: Reports on Compliance and Internal Control in Accordanc...

COMMONWEALTH OF PUERTO RICO MUNICIPALITY OF COAMO Corrective Action Plan For the Fiscal Year Ended June 30, 2025 _____________________________________________________________________________________________________________________ Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and OMB Super Circular Uniform Guidance Audit Period: July 1, 2024 – June 30, 2025 Fiscal Year: 2024-2025 Principal Executive: Hon. Juan C. García Padilla, Mayor Contact Person: Mrs. Miraisa David Esparra, Finance and Budget Director Phone: (787) 825-1150 Original Finding Number: 2025-005 Statement of Concurrence or Non concurrence: We concur with the finding. Corrective Action: We concur with the audit finding. The Municipality did not comply with the required direct service spending percentage due to the limited availability of direct service providers under the program’s Child Care Network (Red de Cuido) division. As a result, only 10 children were enrolled, compared to the 18 originally budgeted. This situation ultimately led to the elimination of the Child Care Network division in the 2025-2026 proposal, as the program required a minimum of 10 service providers, a threshold that could not be met due to the lack of available personnel. Implementation Date: June 30, 2026 Responsible Person: Mr. Hector R. Sanjurjo Rodríguez Federal Programs Director

View Audit 401230

Finding 1214559 (2025-004)

Material Weakness 2025

Municipality of Coamo

PR

Procurement, Suspension & Debarment Subrecipient Monitoring Significant Deficiency

COMMONWEALTH OF PUERTO RICO MUNICIPALITY OF COAMO Corrective Action Plan For the Fiscal Year Ended June 30, 2025 _____________________________________________________________________________________________________________________ Audit Report: Reports on Compliance and Internal Control in Accordanc...

COMMONWEALTH OF PUERTO RICO MUNICIPALITY OF COAMO Corrective Action Plan For the Fiscal Year Ended June 30, 2025 _____________________________________________________________________________________________________________________ Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and OMB Super Circular Uniform Guidance Audit Period: July 1, 2024 – June 30, 2025 Fiscal Year: 2024-2025 Principal Executive: Hon. Juan C. García Padilla, Mayor Contact Person: Mrs. Miraisa David Esparra, Finance and Budget Director Phone: (787) 825-1150 Original Finding Number: 2025-004 Statement of Concurrence or Non concurrence: We concur with the finding. Corrective Action: We acknowledge and accept the observation noted during the Single Audit regarding the frequency of monitoring visits and the completion of monthly evaluations for participants in the Housekeeper Program. We understand that, according to the program’s activity procedures guide, staff are expected to conduct at least two visits per month to each participant’s housing unit and to complete a monthly evaluation of the services provided. However, we would like to provide additional context regarding the operational realities of the program. The assigned Program Coordinator is responsible for overseeing approximately 20 program participants, which would require a minimum of 40 home visits per month to fully comply with the two-visits-per-month requirement. Considering that there are, on average, 20 working days per month, this expectation represents a significant workload within the available time. In addition to conducting home visits and preparing the corresponding reports, the coordinator performs a wide range of essential duties. These include supervising and addressing situations involving approximately 20 housekeeper aides, coordinating services and referrals with external agencies to meet participants’ social needs, organizing meetings, managing administrative responsibilities such as procurement of supplies used by the aides, and participating in program-related administrative meetings. We can attest that the coordinator consistently demonstrates a high level of commitment and diligence in fulfilling these responsibilities. Priority is given to participants with more complex or urgent needs, and in such cases, visits may occur more than once per month. However, meeting the requirement of two visits per month for every participant presents a significant challenge given the scope of responsibilities assigned. We remain committed to evaluating our processes and identifying opportunities to strengthen compliance while ensuring the continued quality and effectiveness of services provided to program participants. Notwithstanding these challenges, we will continue making every effort to comply with the requirements established in the CDBG guidelines. Implementation Date: March 31, 2027 Responsible Person: Mr. Hector R. Sanjurjo Rodríguez Federal Programs Director

View Audit 401230

Finding 1214556 (2025-003)

Material Weakness 2025

Municipality of Coamo

PR

Equipment & Real Property Management Significant Deficiency

COMMONWEALTH OF PUERTO RICO MUNICIPALITY OF COAMO Corrective Action Plan For the Fiscal Year Ended June 30, 2025 _____________________________________________________________________________________________________________________ Audit Report: Reports on Compliance and Internal Control in Accordanc...

COMMONWEALTH OF PUERTO RICO MUNICIPALITY OF COAMO Corrective Action Plan For the Fiscal Year Ended June 30, 2025 _____________________________________________________________________________________________________________________ Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and OMB Super Circular Uniform Guidance Audit Period: July 1, 2024 – June 30, 2025 Fiscal Year: 2024-2025 Principal Executive: Hon. Juan C. García Padilla, Mayor Contact Person: Mrs. Miraisa David Esparra, Finance and Budget Director Phone: (787) 825-1150 Original Finding Number: 2025-003 Statement of Concurrence or Non concurrence: We concur with the finding. Corrective Action: We concur with the audit finding. As expressed in the corrective action related to Finding 2025-002, we are going to identify budgetary resources to engage another staff to work with the capital assets subsidiary ledger completeness. Implementation Date: June 30, 2027 Responsible Person: Mrs. Miraisa David Esparra Finance Department Director

View Audit 401230

Finding 1214480 (2025-002)

Material Weakness 2025

Lodge Grass School District No. 27 & 2

MT

Reporting Significant Deficiency Internal Control / Segregation of Duties § 200.303

Finding 2025-002 – Reporting (Internal Controls Over Compliance) Impact Aid Applications Significant Deficiency Condition: We did not receive back up documentation to support the Children with Disabilities figures on both the Elementary and High School Impact Aid applications. Questioned Costs: None...

Finding 2025-002 – Reporting (Internal Controls Over Compliance) Impact Aid Applications Significant Deficiency Condition: We did not receive back up documentation to support the Children with Disabilities figures on both the Elementary and High School Impact Aid applications. Questioned Costs: None. Criteria: Uniform Guidance, 2 CFR section 200.303 (Internal Controls), effective internal controls require the entity to establish and implement written policies and procedures. These policies must ensure that disbursements are supported by adequate documentation, demonstrating proper authorization, accuracy, and compliance with applicable laws and regulations. Cause: Lack of retention of documents used to support the figures that were presented in the Elementary and High School Impact Aid applications. Although the review and approval of the Impact Aid applications was noted as being performed, the lack of retention of supporting documentation relating to the applications does not support reperformance. Effect: The School District was not in compliance with Uniform Guidance, which could lead to sanctions by the funding agencies. Recommendation: We recommend the entity strengthen internal controls over the review of the impact aid application and the retention of documents used to complete the Impact Aid applications. Views of Responsible Officials: We concur that data submitted by previous school administration was not verifiable. The District has since taken steps to ensure that all CWD student data is submitted to Impact Aid timely and accurately and date used from the Special Ed Dept at the school via reports submitted to the Office of Public Instruction.

View Audit 401189

Finding 1214469 (2025-001)

Material Weakness 2025

Hunter Health Clinic, Inc.

KS

Significant Deficiency

Sliding Fee Discount Supporting Documentation - Significant Deficiency 2025-001 Management agrees with the finding and will strengthen documentation retention processes related to sliding fee determination. Enhanced procedures will be implemented to ensure consistent and timely collection, storage, ...

Sliding Fee Discount Supporting Documentation - Significant Deficiency 2025-001 Management agrees with the finding and will strengthen documentation retention processes related to sliding fee determination. Enhanced procedures will be implemented to ensure consistent and timely collection, storage, and accessibility of supporting documentation, reinforcing compliance and audit readiness. Jana Davis-Tobias Chief Financial Officer

View Audit 401176

Corrective Action Plans

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