Corrective Action Plans

Finding 1205484 (2025-007)

Material Weakness 2025

NM

School Nutrition Programs Equipment & Real Property Management Internal Control / Segregation of Duties § 200.303

Recommendation We recommend the District implement documented daily edit checks reconciling meal counts to attendance records and maintain records of this review. For food inventory, the District should establish a formal inventory system, including perpetual inventory records, monthly physical coun...

Recommendation We recommend the District implement documented daily edit checks reconciling meal counts to attendance records and maintain records of this review. For food inventory, the District should establish a formal inventory system, including perpetual inventory records, monthly physical counts, and supervisory review. Staff involved in Child Nutrition operations should receive training on USDA and federal compliance requirements Management Response Corrective Action The Food Service Director will implement the federally required daily edit check process. This will include comparing daily meal counts against the attendance and enrollment figures to ensure that claims do not exceed the number of students present. Any discrepancies identified during this process will be investigated and documented prior to submission of the monthly claim. The District will also change the tracking of meals served by using an official meal tracking device or by having students use their badge/ID cards to get a more accurate meal count each day. The District has a formal inventory process for all food service supplies including canned goods, dry goods, and freezer items. This system tracks items from receipt through consumption. The District conducts monthly physical inventory counts of all food service assets. These counts are reconciled and any significant variances are reviewed by the Food Service Director and reported to the Business Manager. The District will ensure that all nutrition staff is trained on these procedures as well. Due Date of Completion: June 30, 2026 Responsible Party Business Manager, Food Service Director

View Audit 397169

Finding 1205432 (2025-002)

Material Weakness 2025

Nash County

NC

Eligibility Internal Control / Segregation of Duties Significant Deficiency

Finding 2025-001 Name of contact person: Corrective Action: Proposed completion date: Finding 2025-002 Name of contact person: Corrective Action: Proposed completion date: Section IV - State Award Findings and Questioned Costs Corrective actions for Finding 2025-002 also apply to State Awards. Secti...

Finding 2025-001 Name of contact person: Corrective Action: Proposed completion date: Finding 2025-002 Name of contact person: Corrective Action: Proposed completion date: Section IV - State Award Findings and Questioned Costs Corrective actions for Finding 2025-002 also apply to State Awards. Section III - Federal Award Findings and Questioned Costs Corrective Action Plan Refresher training sessions will be fully completed for all Medicaid staff by the end of January 2026. Documentation standards and quality review processes are already in effect, with ongoing monitoring. Angel Carpenter and Goldie Davis - Medicaid Supervisors All Medicaid caseworkers will complete targeted refresher training on key eligibility and budgeting rules, including the use of online verification systems, accurate income and deduction calculations, household composition, recertification processes, and proper case documentation standards. Training will be delivered through a combination of state Learning Gateway courses, webinars, and internal sessions, with knowledge checks to confirm understanding. Staff will be reminded that “if it’s not documented, it didn’t happen.” Standardized documentation templates have been created and are now required for all cases to ensure thorough, clear, and consistent case notes. Second-party case reviews will continue and be expanded as needed to monitor ongoing accuracy. Case errors and lessons learned will be regular agenda items at monthly staff meetings, with emphasis on double-checking determinations before authorizing or releasing cases in NC FAST. Dedicated weekly time will be protected for staff to work pending verifications and system reports, with supervisory review. Section II - Financial Statement Findings 8/14/2025 Nikki Stanton, Finance Director The Nash County Finance Director was appointed effective April 14, 2025. Since that time, Finance has undertaken the following measures to strengthen operations and internal controls: • Reclassified job duties to better align responsibilities with organizational needs and improve efficiency. • Implemented additional internal controls to enhance the reliability and accuracy of financial processes. • Recruited and onboarded a dedicated Accountant to support the Accounting Manager. These changes have enabled the Accounting Manager to concentrate on performing timely reconciliations and preparing accurate journal entries, thereby improving the overall timeliness and quality of financial reporting. For the Year Ended June 30, 2025 Claude Mayo Jr. Administration Building • 120 West Washington Street, Suite 3072 • Nashville, NC 27856 Phone (252) 459-9800 • Fax (252) 459-9817 188

View Audit 397103

Finding 1205361 (2025-003)

Material Weakness 2025

City of Alexandria

VA

Subrecipient Monitoring Reporting Significant Deficiency § 200.303

HeadStart Assistance Listing No. 93.600 Recommendation: We recommend that DCHS review procedures and internal controls to ensure that the required subawards are reported timely and accurately to FSRS no later than the end of the month following the month of issuance of each subaward. Documentation o...

HeadStart Assistance Listing No. 93.600 Recommendation: We recommend that DCHS review procedures and internal controls to ensure that the required subawards are reported timely and accurately to FSRS no later than the end of the month following the month of issuance of each subaward. Documentation of supporting compliance should be readily available for review. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The reporting has been completed. New employees will be trained in the procedures and internal controls to ensure that the required subawards are reported timely and accurately to FSRS no later than the end of the month following the month of issuance of each subaward. Documentation will be available for review during the audit period. Name(s) of the contact person(s) responsible for corrective action: Noah Abraham, DCHS Operations Director. Planned completion date for corrective action plan: Complete

View Audit 397053

Finding 1205356 (2025-003)

Material Weakness 2025

Health Resources in Action, INC

MA

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting

2025-003 Program Name: Environmental Justice Thriving Communities Grantmaking Program; Assistance Listing Number: 64.615 Compliance Requirement Affected: Reporting: Recommendation: HRIA should improve controls/processes around reporting to ensure documentation is retained related to procurements mad...

2025-003 Program Name: Environmental Justice Thriving Communities Grantmaking Program; Assistance Listing Number: 64.615 Compliance Requirement Affected: Reporting: Recommendation: HRIA should improve controls/processes around reporting to ensure documentation is retained related to procurements made with federal funds. Disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management has implemented additional controls to ensure that each program has documented procedures to submit required reports timely and accurately. The untimely filing of reports in fiscal year 2025 resulted from a change in personnel. During fiscal year 2026, management identified all applicable reporting requirements and assigned responsibility to appropriate personnel. Additional procedures were implemented to ensure reports are reviewed and submitted in accordance with required deadlines. Name of the contact person responsible for corrective action: Beth Doreian, CFO Planned completion date for corrective action plan: March 1, 2026

View Audit 397051

Finding 1205354 (2025-002)

Material Weakness 2025

Health Resources in Action, INC

MA

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting

2025-002 Program Name: Community-Based Violence Intervention and Prevention Initiative; Assistance Listing Number: 16.045 Compliance Requirement Affected: Reporting: Recommendation: HRIA should improve controls/processes around reporting to ensure documentation is retained related to procurements ma...

2025-002 Program Name: Community-Based Violence Intervention and Prevention Initiative; Assistance Listing Number: 16.045 Compliance Requirement Affected: Reporting: Recommendation: HRIA should improve controls/processes around reporting to ensure documentation is retained related to procurements made with federal funds. Disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management has implemented additional controls to ensure that each program has documented procedures to submit required reports timely and accurately. The untimely filing of reports in fiscal year 2025 resulted from a change in personnel. During fiscal year 2026, management identified all applicable reporting requirements and assigned responsibility to appropriate personnel. Additional procedures were implemented to ensure reports are reviewed and submitted in accordance with required deadlines. Name of the contact person responsible for corrective action: Beth Doreian, CFO Planned completion date for corrective action plan: March 1, 2026

View Audit 397051

Finding 1205352 (2025-001)

Material Weakness 2025

Health Resources in Action, INC

MA

Internal Control / Segregation of Duties Procurement, Suspension & Debarment Allowable Costs / Cost Principles

2025-001 Program Name: Community-Based Violence Intervention and Prevention Initiative; Assistance Listing Number: 16.045 Compliance Requirement Affected: Procurement Recommendation: HRIA should improve controls/processes around reporting to ensure documentation is retained related to procurements m...

2025-001 Program Name: Community-Based Violence Intervention and Prevention Initiative; Assistance Listing Number: 16.045 Compliance Requirement Affected: Procurement Recommendation: HRIA should improve controls/processes around reporting to ensure documentation is retained related to procurements made with federal funds. Disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management has implemented additional procedures to ensure that required procurement documentation is appropriately retained for each vendor in accordance with Uniform Guidance requirements. These procedures were implemented and management considers the matter to be fully remediated during fiscal year 2026. Name of the contact person responsible for corrective action: Beth Doreian, CFO Planned completion date for corrective action plan: March 1, 2026

View Audit 397051

Finding 1205342 (2025-004)

Material Weakness 2025

The Edinburg Center, Inc.

MA

Significant Deficiency Internal Control / Segregation of Duties

U.S. Department of Health and Human Services Block Grants for Community Mental Health Services– Assistance Listing No. 93.958 Recommendation: It is recommended that the Organization review controls in place to ensure expenses are approved and maintain evidence of approval. Explanation of disagreemen...

U.S. Department of Health and Human Services Block Grants for Community Mental Health Services– Assistance Listing No. 93.958 Recommendation: It is recommended that the Organization review controls in place to ensure expenses are approved and maintain evidence of approval. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: New Management has adopted a new A/P process for invoice approvals. Approved invoices are required for expenses to be paid. All autopay features on utility bills has been removed. Name(s) of the contact person(s) responsible for corrective action: Kate Mombourquette Planned completion date for corrective action plan: Completed 12/31/2025

View Audit 397046

Finding 1205329 (2025-003)

Material Weakness 2025

Washington Adventist University

MD

Student Financial Aid Subrecipient Monitoring Significant Deficiency

Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: WAU agrees with the recommendation to update our formal process to identify and maintain an inventory of data, devices, and systems that support or process customer f...

Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: WAU agrees with the recommendation to update our formal process to identify and maintain an inventory of data, devices, and systems that support or process customer financial aid information. While we currently use the Spiceworks Inventory System to track hardware and software assets and Google Workspace to manage user cloud access and data storage, we acknowledge that a formal, documented inventory process covering all required categories has not yet been fully established. The IT Director has been assigned to develop and document this process within 30 days. We acknowledge this finding and the associated risk arising from the absence of an independent risk assessment. As of March 25, 2026, the University has engaged TeamLogic Cybersecurity to strengthen our managerial, technical, and operational controls and to (1) develop and document a formal, GLBA aligned risk assessment process; (2) conduct annual independent, comprehensive risk assessment of our information systems and data environment; and (3) provide written findings and recommendations. Based on these results, we will implement appropriate safeguards, and institutionalize an annual risk assessment cycle to ensure that risks are consistently identified, assessed, mitigated, and monitored in accordance with GLBA requirements. Name(s) of the contact person(s) responsible for corrective action: Rosalee Pedapudi, IT Director, Information Technology Services Planned completion date for corrective action plan: April 26, 2026

View Audit 397028

Finding 1205315 (2025-001)

Material Weakness 2025

Town of Stoneham, Massachusetts

MA

Reporting Allowable Costs / Cost Principles Period of Performance

The town notified the U.S. Treasury Department of the error in reporting on 01/20/26, requesting to update the FY25 Project & Expenditure Report. The U.S. Treasury Department stated “Prior submitted reports are not eligible to be reopened for revisions since the reporting deadline has passed. The SL...

The town notified the U.S. Treasury Department of the error in reporting on 01/20/26, requesting to update the FY25 Project & Expenditure Report. The U.S. Treasury Department stated “Prior submitted reports are not eligible to be reopened for revisions since the reporting deadline has passed. The SLFRF Project and Expenditure Reports are cumulative reports and any adjustments needed can be made in the current reporting period if it is still open or next open reporting period.” In addition, the town has implemented quarterly reconciliation procedures to ensure all eligible expenditures for the project reporting period are reported correctly. These procedures include a secondary review of all expenditures, reporting parameters and requirements.

View Audit 397023

Finding 1205307 (2025-002)

Material Weakness 2025

Hra of Bemidji Minnesota

MN

Internal Control / Segregation of Duties HUD Housing Programs Significant Deficiency

Contact Person Stacy Grosse, Executive Director Corrective Action Plan The Authority is implementing a checklist and will continue random monthly file audits to be completed and documented by the Executive Director. Planned Completion Date for CAP Fiscal year beginning July 1, 2025.

View Audit 397015

Finding 1205305 (2025-002)

Material Weakness 2025

County of Luzerne, Pennsylvania

PA

Subrecipient Monitoring Reporting Significant Deficiency

Condition: The Program's Single Audit and reporting package was delayed for the year ended June 30, 2024 beyond the nine-month due date, as a result of turnover and delays in reconciling federal and state award activity with the Commonwealth. Criteria: Pursuant to the provisions of the Uniform Guida...

Condition: The Program's Single Audit and reporting package was delayed for the year ended June 30, 2024 beyond the nine-month due date, as a result of turnover and delays in reconciling federal and state award activity with the Commonwealth. Criteria: Pursuant to the provisions of the Uniform Guidance, under §200.512(a), the Program is required to complete and submit its Single Audit and related Data Collection Form within nine months of the end of its fiscal period (March 31) of the following year. Root Cause Analysis: The audit for the period ending June 30, 2024 was started in January 2025 and was completed and submitted in June 2025. In accordance with Uniform Guidance, the deadline is March 31st annually to have the audit completed and submitted. To meet this deadline, the year-end close and audit process needs to begin at least two months sooner to achieve this deadline. To address finding 2024-002, we began the audit in October 2025, one month ahead of schedule. Planned Corrective Action Steps: 1. Annually, begin the year-end close in September and start the audit in October. Responsible Party: MHDS Fiscal Director and MHDS Fiscal Unit Timeline for Completion: 1. Action Step #1 – September-November 2026

View Audit 397008

Finding 1205303 (2025-005)

Material Weakness 2025

Intecare, INC

IN

Reporting Significant Deficiency

Supporting Services for Veteran Families Program – Assistance Listing No. 64.033 Recommendation: We recommend that reports are prepared and reviewed by separate individuals and that the data gathered to prepare the report is saved with a final copy of it demonstrating the layers of approval in place...

Supporting Services for Veteran Families Program – Assistance Listing No. 64.033 Recommendation: We recommend that reports are prepared and reviewed by separate individuals and that the data gathered to prepare the report is saved with a final copy of it demonstrating the layers of approval in place. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The system used to document completion of processes will be updated to make it more clear who has completed reviews and when. Data for reports will be saved upon completion of reports so it can be referenced later. Reports such as SF-425’s will be signed to indicate they have been reviewed. Name(s) of the contact person(s) responsible for corrective action: Noah Masson Planned completion date for corrective action plan: 3/31/2026

View Audit 396999

Finding 1205299 (2025-003)

Material Weakness 2025

Intecare, INC

IN

Eligibility Significant Deficiency Internal Control / Segregation of Duties

Supporting Services for Veteran Families Program – Assistance Listing No. 64.033 Recommendation: The Organization should enhance the design and controls to ensure that an exit date cannot be assigned to a veteran unless proper due diligence is achieved in accordance with their policies and procedure...

Supporting Services for Veteran Families Program – Assistance Listing No. 64.033 Recommendation: The Organization should enhance the design and controls to ensure that an exit date cannot be assigned to a veteran unless proper due diligence is achieved in accordance with their policies and procedures Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Retraining of managers that exit approval does not happen till 3 documented attempts are in HMIS record. Name(s) of the contact person(s) responsible for corrective action: Eleni Clark Planned completion date for corrective action plan: 3/31/2026

View Audit 396999

Finding 1205275 (2025-007)

Material Weakness 2025

Roof Above, Inc.

NC

Subrecipient Monitoring Reporting Significant Deficiency

Corrective Action Plan Reporting Finding 2025-007 Roof Above will ensure the review of all grant invoices is documented through the signature of the reviewer on the grant cover sheet. Roof Above will institute a policy that grant invoices will not be submitted without the corresponding review signat...

Corrective Action Plan Reporting Finding 2025-007 Roof Above will ensure the review of all grant invoices is documented through the signature of the reviewer on the grant cover sheet. Roof Above will institute a policy that grant invoices will not be submitted without the corresponding review signature. Contact person responsible for corrective action: Tonya Frye, Chief Financial Officer Anticipated completion date: September 30, 2026

View Audit 396990

Finding 1205264 (2025-003)

Material Weakness 2025

Roof Above, Inc.

NC

Subrecipient Monitoring Significant Deficiency Matching / Level of Effort / Earmarking

Corrective Action Plan Special Tests: Housing Quality Standards Finding 2025-003 Roof Above will document review of the inspection by sending an email to the grants administrator stating the inspection has been reviewed. Contact person responsible for corrective action: Katie Church, Vice President ...

Corrective Action Plan Special Tests: Housing Quality Standards Finding 2025-003 Roof Above will document review of the inspection by sending an email to the grants administrator stating the inspection has been reviewed. Contact person responsible for corrective action: Katie Church, Vice President of Scattered Site Housing Anticipated completion date: June 30, 2026

View Audit 396990

Finding 1205254 (2025-002)

Material Weakness 2025

Action for Children

OH

Reporting Internal Control / Segregation of Duties Significant Deficiency § 200.303

We will be hiring an accountant to assist with the workload of submitting reports in a timely manner. This addition to the team will help ensure that all deadlines are met and improve overall efficiency.

View Audit 396956

Finding 1205216 (2025-002)

Material Weakness 2025

Passage Home

NC

Allowable Costs / Cost Principles Cash Management Significant Deficiency

Significant Deficiency in Internal Control over Compliance and Other Matters Recommendation: Significant Deficiency in Internal Control over Compliance and Other Matters Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to findi...

Significant Deficiency in Internal Control over Compliance and Other Matters Recommendation: Significant Deficiency in Internal Control over Compliance and Other Matters Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management believes the issue resulted from timing overlap with the prior year audit, as the transactions occurred in July and August 2024, shortly after the fiscal year-end June 30, 2024. To address this matter, management has retrained existing staff and is in the process of training the new CFO. In addition, management has performed a re-review of accounting records to confirm that no other instances of sales tax misclassification have occurred. Name of the contact person responsible for corrective action: Karen Harshman Planned completion date for corrective action plan: June 30, 2026

View Audit 396885

Finding 1205212 (2025-001)

Material Weakness 2025

Delta Partners Manor II

MS

HUD Housing Programs Significant Deficiency

Delta Partners Manor II, Inc. (the "Project") respectfully submits the following corrective action plan for the year ended December 31, 2025. Audit Firm: Harper, Rains, Knight & Company, P.A. 1052 Highland Colony Parkway, Suite 100 Ridgeland, MS 39157 Audit Period: Year Ended December 31, 2025 Audit...

Delta Partners Manor II, Inc. (the "Project") respectfully submits the following corrective action plan for the year ended December 31, 2025. Audit Firm: Harper, Rains, Knight & Company, P.A. 1052 Highland Colony Parkway, Suite 100 Ridgeland, MS 39157 Audit Period: Year Ended December 31, 2025 Audit Finding Reference: 2025-001 Planned Corrective Action: Management will make an additional deposit to meet requirement and implement controls to ensure that all required deposits are made. Name of Contact Person: If the U. S. Department of Housing and Urban Development for audit has questions regarding this plan, please call Scott Russell at 601-856-2362.

View Audit 396878

Finding 1205211 (2025-003)

Material Weakness 2025

Town of West Warwick

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 The Town of West Warwicks procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Statement of Concurrence or Nonconcurrence Management concurs...

Significant Deficiency in Internal Control over Compliance, Other Matters Description of Finding The Town of West Warwicks procurement standards do not include the essential elements as outlined in 2 CFR sections 200.318 through 200.326. Statement of Concurrence or Nonconcurrence Management concurs with the finding. Corrective Action The error will be corrected as of the beginning for fiscal year ending June 30, 2027. We will add the paragraph to our existing purchasing policy. This must be done by resolution and given the timeline that takes, we anticipate having this implemented the end of June 2026. Name of Contact Person Kristen Benoit, Finance Director Projected Completion Date 7/1/2026

View Audit 396874

Finding 1205201 (2025-004)

Material Weakness 2025

Jewish Child Care Association of New York and Affiliated Organization

NY

Cash Management Significant Deficiency Matching / Level of Effort / Earmarking § 200.302

JCCA CORRECTIVE ACTION PLAN March 23, 2026 Health Resources and Services Administration Jewish Child Care Association of New York (d/b/a JCCA) and Affiliated Organization respectfully submits the following corrective action plan for the year ended June 30, 2025. _____________________________________...

JCCA CORRECTIVE ACTION PLAN March 23, 2026 Health Resources and Services Administration Jewish Child Care Association of New York (d/b/a JCCA) and Affiliated Organization respectfully submits the following corrective action plan for the year ended June 30, 2025. ____________________________________________________________________________________ CohnReznick LLP 1301 Avenue of the Americas New York, NY 10019 Audit Period: June 30, 2025 The findings from the June 30, 2025 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the number assigned in the schedule. FINDINGS – FINANCIAL STATEMENT FINDINGS Finding 2025-001 – Account Analyses MATERIAL WEAKNESS Recommendation We recommend that the Agency implement policies, procedures and controls to ensure that all accounting records are analyzed and reconciled on a monthly basis. Action Taken BTQ Financial is spearheading a comprehensive stabilization project to refine the chart of accounts and reconstruct historical tracking for the permanent endowment fund. BTQ already has in place a rigorous monthly closing schedule. This includes establishing automated reconciliation protocols for program service revenue, endowment tracking, and inter-company accounts to ensure GAAP compliance and timely board reporting. These policies, procedures, and controls to ensure that all accounting records are analyzed and reconciled on a monthly basis have already been incorporated into FY2026 monthly close process. Finding 2025-002 – Information Technology – General Control Activities SIGNIFICANT DEFICIENCY Recommendation We recommend the Agency follow their policy for password age. We also recommend the Agency perform a risk assessment over the information technology environment. We recommend a written risk assessment and penetration test to be performed annually and vulnerability scans to be performed quarterly. Action Taken The Agency has configured NetSuite and Active Directory to programmatically enforce password aging and complexity requirements that strictly mirror our established IT Security Policy. Furthermore, we have moved beyond interview-based assessments to an annual cadence of formal, written risk assessments and penetration testing, supported by continuous monthly vulnerability monitoring through our Security Operation Center (SOC). An interview-based risk assessment was performed in Q3 2025, and monthly vulnerability scans are managed by Arctic Wolf, our Security Operation Center (SOC) service provider. To further strengthen our posture, we will initiate an annual cadence of formal external and internal penetration tests starting in Q2-Q3 2026. FINDINGS – FEDERAL AWARDS PROGRAM AUDIT U.S. Department of Health and Human Services, Unaccompanied Alien Children Program (Assistance Listing Number 93.676), FAIN # 90ZU0603, 90ZU0567, and 90ZU0536, for FY 2025 - Significant Deficiency Finding 2025-003 – Reporting Recommendation We recommend that management of the Agency implement procedures to track all federal reporting deadlines and ensure that reports are reviewed and submitted timely. This could include maintaining a centralized grant reporting calendar and implementing supervisory review prior to submission. Action Taken With the outsourcing to BTQ now fully operational, a centralized Federal Grant Reporting Calendar has been established. This calendar includes automated alerts for all 30/60/90-day deadlines. BTQ has also implemented a dual-level supervisory review process to ensure that all future reports are validated against the general ledger and submitted well in advance of federal deadlines. This protocol has been strictly applied to all federal reporting for the FY2026 cycle. U.S. Department of Health and Human Services, Unaccompanied Alien Children Program (Assistance Listing Number 93.676), FAIN # 90ZU0603, 90ZU0567, and 90ZU0536, for FY 2025 - Significant Deficiency Finding 2025-004 – Cash Management Recommendation We recommend that management of the Agency implement formal controls over the drawdown process that includes establishing procedures requiring documented supervisory review and approval of all drawdown requests and ensuring drawdowns are based on immediate cash needs so that federal funds are expended within a reasonable amount of time. Action Taken The Agency, in collaboration with BTQ Financial, has implemented a formalized "Drawdown Authorization Protocol." This new workflow improves upon the existing, and adds a standardized approach to every drawdown request, documented supporting schedules (showing immediate cash needs), and formal approval from BTQ’s PM, SVPF, VPF, or AVPF. This ensures a clear audit trail and prevents the accumulation of excess federal cash on hand. If the Health Resources and Services Administration has questions regarding this plan, please call Kenneth Shieh, Chief Administration Officer at (718) 747-4367. Sincerely yours, Kenneth Shieh, Chief Administrative Officer

View Audit 396857

Finding 1205187 (2025-002)

Material Weakness 2025

Village of Spring Valley Housing Authority

NY

HUD Housing Programs Special Tests & Provisions Significant Deficiency

Finding 2025-002 – Waiting List Procedures Auditee’s Response and Planned Corrective Action The Authority will review and update its waiting list policies and procedures to ensure full compliance with applicable HUD regulations. Staff will be trained on proper waiting list management Planned Impleme...

Finding 2025-002 – Waiting List Procedures Auditee’s Response and Planned Corrective Action The Authority will review and update its waiting list policies and procedures to ensure full compliance with applicable HUD regulations. Staff will be trained on proper waiting list management Planned Implementation Date of Corrective Action: March 2026 Person Responsible for Corrective Action: Keith Burrell, Executive Director

View Audit 396845

Finding 1205185 (2025-001)

Material Weakness 2025

City of Richardson

TX

Subrecipient Monitoring Special Tests & Provisions Significant Deficiency § 200.326

February 27, 2026 Re: Corrective Action Plan in response to Federal Single Audit Introduction On February 27, 2026, Crowe LLP issued the Independent Auditor’s Report as required and in accordance with the auditing standards generally accepted in the United States of America and the standards applica...

February 27, 2026 Re: Corrective Action Plan in response to Federal Single Audit Introduction On February 27, 2026, Crowe LLP issued the Independent Auditor’s Report as required and in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Controller General. The Corrective Action Plan, submitted by the City of Richardson more specifically, responds to the Report and outlines the City’s corrective action plans to address the finding. We again thank Crowe LLP for their hard work in this matter. This single audit has and will continue to serve as a roadmap for future financial operations. Finding 2025-001: Special Tests – Wage Rate Requirements – Significant Deficiency In two out of seven selections tested for required certified payrolls for contactor or subcontractor work performed during the fiscal year end September 30, 2025, the certified payrolls were not obtained by the City until subsequent to audit fieldwork. In addition, the City did not have internal controls in place to identify that these certified payrolls were not being obtained. Response: The City acknowledges that the required supporting documentation was not available at the time compliance testwork was completed by Crowe LLP. The City recognizes its responsibility to obtain and review certified payroll records from contractors and subcontractors for all laborers working on City grant funded projects to ensure wages and fringe benefits are paid in compliance with the Davis-Bacon Act. Corrective Action Plan: The City has an established Grants Management Policy and quarterly reporting from departments stating compliance with grant requirements. To strengthen compliance and address the documentation deficiency identified in the audit finding, the City will conduct mandatory training sessions with designated grant personnel in each department to reinforce policy requirements, required documentation standards, and applicable federal and state regulations, including certified payroll monitoring requirements where applicable. Training will be completed by June 30, 2026, and will be provided annually thereafter.The City will implement a grant review process that includes a master checklist to assist departments in verifying compliance prior to processing payments. The checklist will include verification that required supporting documentation, including certified payroll records when applicable, has been received, reviewed, and approved. Implementation of this checklist will occur by March 31, 2026. A centralized electronic repository will be established to allow Finance access to grant agreements, supporting documentation and relate records maintained by City departments. This control will be implemented by March 31, 2026. Additional internal controls will be incorporated into the financial software system to ensure that all required supporting documentation is attached and reviewed prior to payment approval. This control will be implemented by March 31, 2026. The City will conduct periodic internal compliance review testing of grants, including verification of required labor compliance documentation where applicable, to confirm ongoing adherence to federal and state regulations. Pre-award and post-award meetings will be held between Finance and the respective grant departments to establish reporting parameters, documentation requirements, monitoring responsibilities and compliance expectations prior to project implementation. When bids are solicited that include grant funding, the City will continue to communicate to all prospective bidders that compliance with all applicable federal and state laws and regulations, including labor standard requirements when applicable, is a condition of award. Bid documents will include a sample copy of the U.S. Department of Labor Davis-Bacon and Related Acts Weekly Certified Payroll form. Contact Person Responsible/Anticipated Completion Date: The Finance Director is responsible for oversight of this corrective action plan, with day-to-day management and implementation delegated to the Assistant Director of Finance. Implementation of these corrective actions is scheduled to begin immediately, with full completion anticipated by June 30, 2026. Once implemented, the procedures will be monitored on an ongoing basis to ensure continued compliance and to prevent recurrence of the finding.

View Audit 396839

Finding 1205184 (2025-002)

Material Weakness 2025

TOWN OF FREETOWN

MA

Procurement, Suspension & Debarment Internal Control / Segregation of Duties Subrecipient Monitoring § 200.214

Finding 2025-002 Condition: Suspension and debarment compliance was not verified for nine covered transactions. Corrective Action Planned: Going forward, all contracts using federal funds will be verified. Anticipated Completion Date: Completed Contact: Matt Parent, Town Accountant

View Audit 396832

Finding 1205182 (2025-001)

Material Weakness 2025

TOWN OF FREETOWN

MA

Subrecipient Monitoring Reporting Significant Deficiency § 200.1

Finding 2025-001 Condition: Expenditures were not reconciled to the general ledger for reporting submitted to the U.S. Department of the Treasury. Corrective Action Planned: Report differences to the U.S. Treasury will be corrected in the next report. Anticipated Completion Date: 4/30/2026 Contact: ...

Finding 2025-001 Condition: Expenditures were not reconciled to the general ledger for reporting submitted to the U.S. Department of the Treasury. Corrective Action Planned: Report differences to the U.S. Treasury will be corrected in the next report. Anticipated Completion Date: 4/30/2026 Contact: Matt Parent, Town Accountant

View Audit 396832

Finding 1205160 (2025-004)

Material Weakness 2025

Beacon College, Inc.

FL

Reporting Student Financial Aid Significant Deficiency

Recommendation: We recommend the College evaluate its policies and procedures around reporting student status changes to NSLDS to ensure that all relevant information is being captured and reported timely in accordance with applicable regulations. Explanation of disagreement with audit finding: Ther...

Recommendation: We recommend the College evaluate its policies and procedures around reporting student status changes to NSLDS to ensure that all relevant information is being captured and reported timely in accordance with applicable regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: Internal Control Enhancement: The Registrar will update the department’s internal control procedures to include a scheduled monitoring process to ensure that all enrollment status changes are reviewed and reported to NSLDS within 60 days. The procedure will also include a verification step to document when a student qualifies under the limited exception policy, ensuring appropriate justification is maintained for any enrollment updates reported outside the 60-day timeframe. Periodic reconciliation between the Student Information System and NSLDS reporting records will be conducted to confirm that all enrollment changes are transmitted within the required reporting period. Name(s) of the contact person(s) responsible for corrective action: Carrie Santaw, Bursar Planned completion date for corrective action plan: April 1, 2026

View Audit 396825

Corrective Action Plans

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