Corrective Action Plans

Finding 1191472 (2025-004)

Material Weakness 2025

MI

Student Financial Aid Eligibility Significant Deficiency

Cost of Attendance Calculation Inputs Auditor Description of Condition and Effect. During our testing of the College’s cost of attendance (COA) calculations, we identified inconsistencies between the COA component amounts recorded in the system and the amounts documented on the College’s COA calcula...

Cost of Attendance Calculation Inputs Auditor Description of Condition and Effect. During our testing of the College’s cost of attendance (COA) calculations, we identified inconsistencies between the COA component amounts recorded in the system and the amounts documented on the College’s COA calculation sheet. For instance, the College's tuition component was supposed to be based on credit intensity, but instead was being calculated using the student's enrollment status (e.g., full-time, half-time, etc.). Additionally, the College included direct loan fees in every students COA, even if they were not a direct loan receiving student. As a result, COA amounts used in awarding Title IV aid were being understated, preventing some students from potentially receiving additional aid they were entitled to. Auditor Recommendation. We recommend that the College establish and adhere to review procedures to ensure that all inputs used in the COA calculation are accurate, complete, and consistent with approved documentation. Corrective Action. Management is actively enhancing the College’s Cost of Attendance (COA) processes to ensure all inputs—particularly tuition, loan fees, and enrollment‑related components—accurately reflect approved documentation and federal requirements. The Financial Aid Office has reconfigured PowerFAIDS to calculate tuition based on credit intensity rather than enrollment status, and loan fees are now included only for students who actually borrow federal loans. An annual COA governance and approval process is now in place, requiring review and authorization by the Vice President of Finance and Administration before COA figures are built into the system. All COA entries in PowerFAIDS undergo an independent verification against the approved COA worksheet as part of a “build‑to‑proof” procedure. Spot checks are conducted at the start of each term to ensure accuracy across enrollment levels, and all mid‑year changes are documented using a formal change‑control log. Responsible Person. Jennifer Stimson, Director of Financial Aid Anticipated Completion Date. March 31, 2026

View Audit 395393

Finding 1191467 (2025-003)

Material Weakness 2025

Montcalm Community College

MI

Student Financial Aid Reporting Significant Deficiency

Fiscal Operations Report and Application to Participate (FISAP) Reporting Auditor Description of Condition and Effect. It was noted during our testing of the FISAP that the College did not have support for one of the eight key line items (information on eligible aid applicants) identified in the com...

Fiscal Operations Report and Application to Participate (FISAP) Reporting Auditor Description of Condition and Effect. It was noted during our testing of the FISAP that the College did not have support for one of the eight key line items (information on eligible aid applicants) identified in the compliance supplement as critical information. As a result, the College is not in compliance with the Department of Education requirements that state the FISAP must be accurately reporting information. Auditor Recommendation. We recommend the College review their policies and procedures surrounding FISAP reporting. Corrective Action. The College is improving its documentation and retention processes to ensure all information used in preparing the annual FISAP report is fully supported and available for review. Moving forward, all data underlying the eight key line items identified in the compliance supplement will be saved, documented, and stored in a consistent and accessible manner. Information obtained from other departments will be retained in its original format, and any data extracted from PowerFAIDS or related systems will be saved at the time of report preparation. By implementing these documentation and retention procedures as standard operating practice, the College ensures FISAP submissions are accurate, verifiable, and compliant with federal audit requirements. Responsible Person. Jennifer Stimson, Director of Financial Aid Anticipated Completion Date. June 30, 2026

View Audit 395393

Finding 1191462 (2025-002)

Material Weakness 2025

Montcalm Community College

MI

Eligibility Student Financial Aid Reporting

Ineligible Student Received Title IV Funding Auditor Description of Condition and Effect. During our testing, we noted that a student successfully appealed their academic dismissal in the Summer 2022–2023 semester. The student did not receive Title IV funding during that term and subsequently failed...

Ineligible Student Received Title IV Funding Auditor Description of Condition and Effect. During our testing, we noted that a student successfully appealed their academic dismissal in the Summer 2022–2023 semester. The student did not receive Title IV funding during that term and subsequently failed both attempted courses. Despite the lack of demonstrated academic improvement following the appeal, the student was awarded Title IV funding in the Spring 2024–2025 semester based on the appeal granted during the 2022–2023 academic year. As a result of this condition, one student received Title IV funding that who was not eligible based on the criteria outlined in the College's satisfactory academic policy (SAP). Auditor Recommendation. We recommend the College implement a formal review process to verify that students who were previously dismissed and granted an appeal in a prior academic year have demonstrated the required academic improvement before receiving subsequent Title IV funding, or alternatively, obtain a new appeal determination. Corrective Action. Management acknowledges this finding and is implementing strengthened Satisfactory Academic Progress (SAP) review procedures to ensure students who previously appealed an academic dismissal are properly evaluated before receiving Title IV funding. The Financial Aid Office is now working closely with the Registrar to ensure both Title‑IV and non‑Title‑IV students undergo appropriate SAP monitoring. Information Technology is developing a report that identifies students by financial‑aid track status, allowing Financial Aid to review aid‑receiving students while the Registrar evaluates all others. Students who require SAP follow‑up are contacted by the appropriate office, and SAP appeal forms are reviewed under updated criteria to ensure students demonstrate academic improvement before additional aid is awarded. These steps ensure the College remains compliant with federal SAP requirements and prevents ineligible students from receiving Title IV funds. Responsible Person. Jennifer Stimson, Director of Financial Aid Anticipated Completion Date. June 30, 2026

View Audit 395393

Finding 1191428 (2025-003)

Material Weakness 2025

Langston University

OK

Procurement, Suspension & Debarment Significant Deficiency § 200.303 § 200.318

Research and Development – Assistance Listing No. 10.205 Agriculture Extension at 1890 Land-grant Institutions – Assistance Listing No. 10.512 Higher Education Institutional Aid – Assistance Listing No. 84.031 Recommendation: We recommend that the University review policies and procedures for procur...

Research and Development – Assistance Listing No. 10.205 Agriculture Extension at 1890 Land-grant Institutions – Assistance Listing No. 10.512 Higher Education Institutional Aid – Assistance Listing No. 84.031 Recommendation: We recommend that the University review policies and procedures for procurement to ensure that every applicable transaction is going through the proper procurement procedures Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The University is reviewing existing procurement policies and procedures and strengthening processes as necessary. Additionally, training is being provided to relevant personnel to ensure an understanding of proper procurement procedures. Name(s) of the contact person(s) responsible for corrective action: Ms. Andrea Sherwood, Assistant Director, Grants and Contracts Financial Administration at Oklahoma State University and Ms. Nykkia Harris, Controller for Fiscal and Administrative Affairs Planned completion date for corrective action plan: June 2026

View Audit 395389

Finding 1191373 (2025-006)

Material Weakness 2025

Langston University

OK

Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

Student Financial Aid Cluster: Federal Pell Grant Program – Assistance Listing No. 84.063 Federal Direct Student Loans – Assistance Listing No. 84.268 Recommendation: We recommend the University review its current procedures for Title IV funds and implement additional procedures to ensure refunds ar...

Student Financial Aid Cluster: Federal Pell Grant Program – Assistance Listing No. 84.063 Federal Direct Student Loans – Assistance Listing No. 84.268 Recommendation: We recommend the University review its current procedures for Title IV funds and implement additional procedures to ensure refunds are returned timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The University is evaluating its current Title IV funds procedures and implementing additional procedures to ensure timely return of refunds. This includes assigning additional staff to manage this process. Also, relevant staff have been reminded of the need to notify Financial Aid of student withdrawals timely. Name(s) of the contact person(s) responsible for corrective action: Ms. Nacasaw Coppage, Director of Office of Financial Aid Planned completion date for corrective action plan: March 2026

View Audit 395389

Finding 1191337 (2025-004)

Material Weakness 2025

Langston University

OK

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

Student Financial Aid Cluster: TEACH Grant – Assistance Listing No. 84.379 Recommendation: We recommend the University review and update current procedures to ensure that students meet eligibility requirements prior to receiving the TEACH Grant. Explanation of disagreement with audit finding: There ...

Student Financial Aid Cluster: TEACH Grant – Assistance Listing No. 84.379 Recommendation: We recommend the University review and update current procedures to ensure that students meet eligibility requirements prior to receiving the TEACH Grant. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The University has updated procedures to ensure verification of student GPA prior to disbursement of TEACH Grant funding. Name(s) of the contact person(s) responsible for corrective action: Ms. Nacasaw Coppage, Director of Office of Financial Aid and Ms. Courtney Youngblood, Assistant Director of Financial Aid Planned completion date for corrective action plan: September 2025

View Audit 395389

Finding 1191322 (2025-001)

Material Weakness 2025

Langston University

OK

Subrecipient Monitoring Cash Management Significant Deficiency § 200.303 § 200.305

Research and Development – Assistance Listing No. 10.215 Research and Development – Assistance Listing No. 93.433 Recommendation: We recommend that the University review and update policies and procedures to allow for more timely payment to subrecipients for work the University contracts them to per...

Research and Development – Assistance Listing No. 10.215 Research and Development – Assistance Listing No. 93.433 Recommendation: We recommend that the University review and update policies and procedures to allow for more timely payment to subrecipients for work the University contracts them to perform. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: This is a repeat finding that was first presented to the University in conjunction with the release of the 2023 audit report in May 2024. The 2023 audit was completed after substantially all of Fiscal Year 2024 had elapsed, so there was not adequate time for the University to fully implement corrective action. While these corrective measures were implemented during Fiscal Year 2025, they did not fully resolve the issue. The University continues to strengthen its accounts payable processes and sign-off approvals to help ensure reimbursements to subrecipients are paid timely. Additional updates to procedures for payment processing are also being developed. Methods for more accurate tracking of invoice receipt dates are being developed to ensure the 30-day period begins on the correct day. Principal investigators and designated administrative personnel within academic departments will be reminded of the need to initiate payments to subrecipients timely. Accounts payable training has been held for such personnel and will persist. Name(s) of the contact person(s) responsible for corrective action: Ms. Andrea Sherwood, Assistant Director, Grants and Contracts Financial Administration at Oklahoma State University and Ms. Nykkia Harris, Controller for Fiscal and Administrative Affairs Planned completion date for corrective action plan: May 2026

View Audit 395389

Finding 1191227 (2025-004)

Material Weakness 2025

Isd # 13 Columbia Heights

MN

Procurement, Suspension & Debarment Internal Control / Segregation of Duties School Nutrition Programs § 200.318

SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE – U.S. DEPARTMENT OF AGRICULTURE – PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION – CHILD NUTRITION CLUSTER (ALN 10.553, 10.555, AND 10.559) 2025-004 Internal Control Over Compliance With Federal Suspension and Debarment Requirements Findi...

SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE – U.S. DEPARTMENT OF AGRICULTURE – PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION – CHILD NUTRITION CLUSTER (ALN 10.553, 10.555, AND 10.559) 2025-004 Internal Control Over Compliance With Federal Suspension and Debarment Requirements Finding Summary 2 CFR § 180 and 2 CFR § 200.318-327 requires the District to establish and maintain effective internal control over compliance with requirements applicable to federal program expenditures, including suspension and debarment requirements applicable to the child nutrition cluster federal programs. During our audit, we noted the District did not have sufficient controls in place within its child nutrition cluster federal programs to ensure compliance with federal requirements related to assuring that the District was not contracting for goods or services with parties that are suspended or debarred, or whose principals are suspended or debarred from participating in contracts involving the expenditures of federal program funds. Corrective Action Plan Actions Planned – The District will review its policies and procedures relating to suspension and debarment for its federal programs to ensure compliance with the Uniform Guidance in the future. The review of procedures will also include steps to assure that district personnel are following the requirements of the Uniform Guidance related to suspension and debarment, including maintaining appropriate documentation. Official Responsible – Bryan Hennekens, Director of Finance and Operations. Planned Completion Date – June 30, 2026. Disagreement With or Explanation of Finding – The District is in agreement with this finding. Plan to Monitor – Bryan Hennekens, Director of Finance and Operations, will assure appropriate internal controls and procedures are in place to ensure compliance with suspension and debarment requirements.

View Audit 395377

Finding 1191219 (2025-006)

Material Weakness 2025

Puerto Rico Highways and Transportation Authority

PR

Internal Control / Segregation of Duties Subrecipient Monitoring Cash Management

Finding Reference 2025-06 Corrective Action Plan: To strengthen internal controls, improve monitoring, and reduce delays in the certification and payment process, the Authority will implement the following operational improvements: The Authority is using the Finance Office Dashboard to track the sta...

Finding Reference 2025-06 Corrective Action Plan: To strengthen internal controls, improve monitoring, and reduce delays in the certification and payment process, the Authority will implement the following operational improvements: The Authority is using the Finance Office Dashboard to track the status of certifications and invoices in real time, identify bottlenecks in the approval process, and support proactive management of pending payments. A standardized Construction Certification Compliance Checklist will be used to validate all required federal compliance documentation before certifications are submitted to the Finance Office. This measure is expected to reduce the number of returned submissions and prevent delays during the billing review process. The Authority will develop a Help Desk platform for certification and invoice inquiries to formally manage, document, and track inquiries or claims related to Construction Certifications and Pre- Construction invoices, improving transparency and response times. The Authority will launch the ICMM Payment Tracking Table to consolidate and monitor the payment status of certifications and invoices. Additionally, the Authority is establishing intermediate milestones to progressively reduce the payment processing cycle, with the objective of moving from the current 40-day average toward the 30-day target. As part of this initiative, the Authority is expanding the use of the Project Management Information System (PMIS) to standardize and streamline the processing of construction certifications and payment documentation. Responsible: Mr. Angel M. Felix Cruz, Acting Director, Confidential Finance Office Planned Implementation Date: In process. The first operational improvement has been implemented. The remaining three measures are pending implementation. Expected to be completed on or before June 30, 2026.

View Audit 395336

Finding 1191218 (2025-005)

Material Weakness 2025

Puerto Rico Highways and Transportation Authority

PR

Subrecipient Monitoring Internal Control / Segregation of Duties Special Tests & Provisions

Finding Reference 2025-05 Corrective Action Plan: The Authority implemented the following actions in March 2026 to ensure compliance with the Davis-Bacon Act and strengthen payroll certification process: On March 11, 2026, all personnel of the Construction Office receive adequate training on Davis-B...

Finding Reference 2025-05 Corrective Action Plan: The Authority implemented the following actions in March 2026 to ensure compliance with the Davis-Bacon Act and strengthen payroll certification process: On March 11, 2026, all personnel of the Construction Office receive adequate training on Davis-Bacon Act requirements and payroll certification processes. On March 20, 2026, the Authority prepared a formal communication to reinforce the compliance with the Davis Bacon Act and to provide updated forms and instructions for completing certification payroll process. On March 3, 2026, the Authority contracted external consultants to enhance monitoring procedures over contractors and subcontractors, including timeliness tracking of properly certified payroll on a weekly basis and follow-up on missing or incomplete documentation Responsible: Mr. Emilio Garay, PE, Construction Office Director Planned Implementation Date: In process. Expected to be completed on or before June 30, 2026.

View Audit 395336

Finding 1191214 (2025-003)

Material Weakness 2025

Concordia University Chicago

IL

Student Financial Aid Significant Deficiency § 200.303

2025-003 Documentation of Review Recommendation: We recommend the University re-evaluate its procedures and review policies surrounding controls implemented for Title IV Aid. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to ...

2025-003 Documentation of Review Recommendation: We recommend the University re-evaluate its procedures and review policies surrounding controls implemented for Title IV Aid. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: 1) The Office of Financial Aid will re-evaluate its current policies and procedures to clearly define internal control objectives and strengthen overall compliance. 2) The Office of Financial Aid has implemented – and will continue to maintain - a dual-review process (second-level review) for Return of Title IV Funds, federal award packaging, and the review of the FISAP report to ensure accuracy and regulatory compliance. 3) The Director and Assistant Director of Financial Aid will continue cross-training staff to promote operational continuity, reinforce internal controls, and maintain clear oversight of key processes. Name(s) of the contact person(s) responsible for corrective action: Vanesa Teran-Martinez, Jennifer Monroy Planned completion date for corrective action plan: June 30, 2026 If the Department of Education has questions regarding this schedule, please call Vanesa Teran-Martinez at 708-209-3338.

View Audit 395330

Finding 1191208 (2025-002)

Material Weakness 2025

Concordia University Chicago

IL

Student Financial Aid Reporting Significant Deficiency

2025-002 National Student Loan Data System (NSLDS) Enrollment Reporting Recommendation: We recommend the University review and strengthen its reporting procedures to ensure that student statuses are accurately reported to NSLDS, as required by federal regulations. Explanation of disagreement with au...

2025-002 National Student Loan Data System (NSLDS) Enrollment Reporting Recommendation: We recommend the University review and strengthen its reporting procedures to ensure that student statuses are accurately reported to NSLDS, as required by federal regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: 1) All enrollment reporting was submitted to the National Student Clearinghouse in a timely manner. The delay occurred during the National Student Clearinghouse’s processing and submission to NSLDS. 2) The Office of the Registrar will work with the Office of Financial Aid to learn more about NSLDS compliance requirements and gain a better understanding of their relationship with the National Student Clearinghouse. 3) The Office of the Registrar will work with the National Student Clearinghouse to confirm the submitted reporting schedule for academic year 2026 – 2027 complies with and meets their expectations and will adjust (if needed). 4) The Office of the Registrar will continue to work with the Enrollment Offices to remind them that students who are not enrolled (and not on leave of absence, graduated, and/or deceased) must be marked as withdrawn based on external reporting compliance requirements. 5) The Office of the Registrar continues to work with IT (Banner Team) to improve reporting to capture students who are not enrolled (and not on leave of absence, graduated, and/or deceased) to be marked as withdrawn to comply with the National Student Clearinghouse and NSLDS compliance reporting requirements. Name(s) of the contact person(s) responsible for corrective action: Ingrid Sorensen, Katarzyna Rodriguez Planned completion date for corrective action plan: June 30, 2026

View Audit 395330

Finding 1191202 (2025-001)

Material Weakness 2025

Concordia University Chicago

IL

Student Financial Aid Eligibility Significant Deficiency

2025-001 Pell Grant Under Award Recommendation: We recommend the University implement a review process that compares enrolled credits to Pell awards to ensure all students receive the correct Pell Grant amounts. Explanation of disagreement with audit finding: There is no disagreement with the audit ...

2025-001 Pell Grant Under Award Recommendation: We recommend the University implement a review process that compares enrolled credits to Pell awards to ensure all students receive the correct Pell Grant amounts. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: 1) The Office of Financial Aid will continue to run monthly or bi-monthly enrollment reports for Pell Grant recipients to ensure awards are accurately determined based on enrollment status. 2) Financial Aid Counselors will continue to review the daily and weekly Hour Change Reports for each payment period to ensure Pell Grant awards are adjusted appropriately in response to enrollment status changes. 3) The Director and Assistant Director of Financial Aid will continue providing Banner (student information system) training to staff to ensure Pell Grant amounts are updated accurately within the system. Name(s) of the contact person(s) responsible for corrective action: Vanesa Teran-Martinez, Jennifer Monroy Planned completion date for corrective action plan: June 30, 2026

View Audit 395330

Finding 1191025 (2025-001)

Material Weakness 2025

Chatham University

PA

Reporting Significant Deficiency Matching / Level of Effort / Earmarking

United States Department of Education Student Financial Assistance Cluster - Assistance Listing No. 84.SFA Condition: The University was unable to provide documentation of certain instances of internal controls procedures occurring. Recommendation: Management should review policies and procedures ov...

United States Department of Education Student Financial Assistance Cluster - Assistance Listing No. 84.SFA Condition: The University was unable to provide documentation of certain instances of internal controls procedures occurring. Recommendation: Management should review policies and procedures over retention of internal control documentation. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Processes and procedues were reviewed, updated, documented and implemented upon the hiring of Assistant Vice President of Financial Aid, Jill Bittel on September 15, 2025. Name(s) of the contact person(s) responsible for corrective action: Jill Bittel, Assistant Vice President, Financial Aid Planned completion date for corrective action plan: Complete and provided to audit to prove current processes in place with all new staff are corretly implemented.

View Audit 395253

Finding 1191017 (2025-024)

Material Weakness 2025

State of Delaware

DE

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

Reference Number: 2025-024 Prior Year Finding: No Federal Agency: U.S. Department of Health and Human Services State Department Name: Department of Health and Social Services State Division Name: Division of Medicaid and Medical Assistance Federal Program: Medicaid Cluster Assistance Listing Number:...

Reference Number: 2025-024 Prior Year Finding: No Federal Agency: U.S. Department of Health and Human Services State Department Name: Department of Health and Social Services State Division Name: Division of Medicaid and Medical Assistance Federal Program: Medicaid Cluster Assistance Listing Number: 93.775, 93.777, 93.778 Award Number and Year: 2405DE5MAP (10/1/2023 – 9/30/2024) 2505DE5MAP (10/1/2024 – 9/30/2025) Compliance Requirement: Eligibility Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Recommendation: The Division should implement procedures and controls to ensure that it maintains documentation supporting participant eligibility and this documentation should be readily available for audit. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Division of Medicaid and Medical Assistance (DMMA) in partnership with the Division of Social Services (DSS) will provide training for determination member eligibility. DSS will also ensure supporting participant eligibility documentation is properly maintained. Name(s) of the contact person(s) responsible for corrective action: Kathleen Mahoney, Social Service Sr. Administrator, DMMA Carolyn Kincaid, Social Service Chief Administrator, DSS Marcella Spady, Deputy Principal Assist, DSS Planned completion date for corrective action plan: September 2026

View Audit 395248

Finding 1191013 (2025-023)

Material Weakness 2025

State of Delaware

DE

Special Tests & Provisions Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

Reference Number: 2025-023 Prior Year Finding: 2024-022 Federal Agency: U.S. Department of Health and Human Services State Department Name: Department of Health and Social Services State Division Name: Division of Medicaid and Medical Assistance Federal Program: Children’s Health Insurance Program, ...

Reference Number: 2025-023 Prior Year Finding: 2024-022 Federal Agency: U.S. Department of Health and Human Services State Department Name: Department of Health and Social Services State Division Name: Division of Medicaid and Medical Assistance Federal Program: Children’s Health Insurance Program, Medicaid Cluster Assistance Listing Number: 93.767, 93.775, 93.777, 93.778 Award Number and Year: 2405DE5021 (10/1/2023 – 9/30/2025) 2505DE5021 (10/1/2024 – 9/30/2026) 2405DE5MAP (10/1/2023 – 9/30/2024) 2505DE5MAP (10/1/2024 – 9/30/2025) Compliance Requirement: Special Tests and Provisions – Managed Care Financial Audit Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Recommendation: The Division should implement procedures and controls to ensure that it posts the results of independent audits to its website once completed, as required. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: DMMA will revirew the procedures and provide additional training for staff to ensure each MCO has had an audit, obtain copies of the audit, reviews the results, and post the results of the audit on the website. Name(s) of the contact person(s) responsible for corrective action: Colleen Yezek, Chief of Admin. MCO Ops. Donna O’Hanlon, Soc. Service Sr. Admin. Planned completion date for corrective action plan: September 2026

View Audit 395248

Finding 1190991 (2025-015)

Material Weakness 2025

State of Delaware

DE

Subrecipient Monitoring Reporting Significant Deficiency § 200.303

Reference Number: 2025-015 Prior Year Finding: No Federal Agency: U.S. Department of the Treasury State Department Name: Office of the Governor Federal Program: COVID-19 – Coronavirus Capital Projects Fund Assistance Listing Number: 21.029 Award Number and Year: CPFFN0144 (2/4/2022 – 12/31/2026) Com...

Reference Number: 2025-015 Prior Year Finding: No Federal Agency: U.S. Department of the Treasury State Department Name: Office of the Governor Federal Program: COVID-19 – Coronavirus Capital Projects Fund Assistance Listing Number: 21.029 Award Number and Year: CPFFN0144 (2/4/2022 – 12/31/2026) Compliance Requirement: Reporting Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Recommendation: We recommend that the Office enhance its procedures and internal controls to ensure that reported square footage agrees with supporting documentation. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The ARPA team acknowledges that the discrepancy in reported square footage resulted from a data entry error and insufficient controls to ensure that updates to project data were reflected in subsequent reporting periods. To address this, the team has implemented enhanced data validation procedures, including reconciliation of reported data to supporting documentation each reporting period, formal tracking of changes to project data, and a secondary review of key data elements prior to submission. Ongoing monitoring will be performed to ensure continued accuracy and consistency across reporting periods. Name(s) of the contact person(s) responsible for corrective action: John Celatka and Greg Sweeney Planned completion date for corrective action plan: June 30, 2026

View Audit 395248

Finding 1190989 (2025-013)

Material Weakness 2025

State of Delaware

DE

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

Reference Number: 2025-013 Prior Year Finding: 2024-013 Federal Agency: U.S. Department of the Treasury State Department Name: Office of the Governor Federal Program: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Number and Year: SLFRP0139 (3/3/...

Reference Number: 2025-013 Prior Year Finding: 2024-013 Federal Agency: U.S. Department of the Treasury State Department Name: Office of the Governor Federal Program: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Number and Year: SLFRP0139 (3/3/2021 – 12/31/2024) SLFRP2629 (3/3/2021 – 12/31/2024) Compliance Requirement: Reporting Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Recommendation: We recommend that the Office enhance procedures and internal controls to ensure that it reports and/or maintains in project files capital project justifications that contain all required elements. The Office should provide training of State agency personnel and conduct periodic reviews of written capital project justifications to ensure that they comply with program requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The ARPA team acknowledges that the repeat finding related to capital project justifications resulted from gaps in enforcement and follow-up procedures with state agencies. While guidance was provided, the team did not consistently ensure that complete and compliant capital project justifications were obtained and reviewed prior to reporting. Contributing factors included limited staffing resources also impacted agencies’ ability to provide complete historical information for projects initiated in prior reporting periods. In several cases, agency personnel responsible for original project justifications were no longer available, making it more difficult to obtain sufficient documentation to meet Treasury requirements. However, the ARPA team recognizes that these challenges do not mitigate the responsibility to ensure compliance with reporting requirements. To address this, the ARPA team will implement enhanced controls to ensure compliance with capital project justification requirements. These include requiring complete justifications prior to reporting, use of a standardized template and review checklist, and a formal second-level review process to verify completeness and accuracy. In addition, the team will maintain centralized tracking of all submissions, implement formal escalation procedures for nonresponsive agencies, and provide ongoing training and guidance, including support for new agency personnel. Periodic compliance reviews will also be conducted to ensure continued adherence to program requirements. These actions are designed to strengthen internal controls, improve accountability, and ensure that all reported capital project justifications fully comply with Treasury requirements. Name(s) of the contact person(s) responsible for corrective action: John Celatka and Greg Sweeney Planned completion date for corrective action plan: June 30, 2026

View Audit 395248

Finding 1190988 (2025-012)

Material Weakness 2025

State of Delaware

DE

Matching / Level of Effort / Earmarking Special Tests & Provisions Significant Deficiency § 200.303

Reference Number: 2025-012 Prior Year Finding: 2024-006 Federal Agency: U.S. Department of Labor State Agency: Department of Labor State Division: Division of Unemployment Insurance Federal Program: Unemployment Insurance, COVID-19 – Unemployment Insurance Assistance Listing Number: 17.225 Award Num...

Reference Number: 2025-012 Prior Year Finding: 2024-006 Federal Agency: U.S. Department of Labor State Agency: Department of Labor State Division: Division of Unemployment Insurance Federal Program: Unemployment Insurance, COVID-19 – Unemployment Insurance Assistance Listing Number: 17.225 Award Number and Period: UI372152255A10 (10/1/2021 – 12/31/2024) UI393142355A10 (10/1/2022 – 12/31/2025) 24A55UI000067 (10/1/2023 – 12/31/2026) 25A55UI000116 (1/1/2024 – 12/31/2027) Compliance Requirement: Special Tests and Provisions – Employer Experience Rating Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Recommendation: The Division should review and enhance procedures and controls to ensure that employer experience rates are properly calculated and applied. Explanation of disagreement with audit finding: Disagreement with Finding-New Employer Rate Assignment Action taken in response to finding: We disagree with the finding as we believe the employer’s account effective date and liability status were established in accordance with the applicable state UI laws and regulations. Documentation can be provided to substantiate this determination. Account# 69821 was established in November of 2024 with a liability date of 04/2013 per employer’s application on file, which gave the employer a new employer rate of 2.8. After my discussion with the auditor on 3/19/26, I pulled the folder to further investigate. Based on this review, we conclude that the rate assignment was accurate and compliant, and therefore the finding appears to be based on a misunderstanding of the employer’s account status or the applicable rate criteria. The business already implemented a corrective action plan in 2025 which entailed changing how the calculation is performed. This calculation is now done outside of the Mainframe system in compliance with Title 19 rules with results uploaded into the system after calculation. The UI program successfully provided an auditable population for calendar year 2025 Name(s) of the contact person(s) responsible for corrective action: Angela Hackett, Administrator Planned completion date for corrective action plan: We have internal controls in place to mitigate the risk of an incorrect rate being assigned to a new employer. This issue was corrected in 2025 when finding was first originally presented.

View Audit 395248

Finding 1190986 (2025-011)

Material Weakness 2025

State of Delaware

DE

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

Reference Number: 2025-011 Prior Year Finding: 2024-012 Federal Agency: U.S. Department of Labor State Department Name: Department of Labor State Division Name: Division of Unemployment Insurance Federal Program: Unemployment Insurance, COVID-19 – Unemployment Insurance Assistance Listing Number: 17...

Reference Number: 2025-011 Prior Year Finding: 2024-012 Federal Agency: U.S. Department of Labor State Department Name: Department of Labor State Division Name: Division of Unemployment Insurance Federal Program: Unemployment Insurance, COVID-19 – Unemployment Insurance Assistance Listing Number: 17.225 Award Number and Year: UI372152255A10 (10/1/2021 – 12/31/2024) UI393142355A10 (10/1/2022 – 12/31/2025) 24A55UI000067 (10/1/2023 – 12/31/2026) 25A55UI000116 (1/1/2024 – 12/31/2027) Compliance Requirement: Reporting – ETA 9130, Financial Status Report, UI Programs Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Recommendation: We recommend the Division review and enhance procedures and internal controls to ensure that ETA 9130 reports agree with supporting documentation and that documentation is maintained and is readily available for audit. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We acknowledge the audit finding that several ETA 9130 reports did not agree with the supporting documentation. Procedures have been implemented to ensure documentation used to complete the ETA 9130 reports are reviewed by both the Certifying and Approving Officials before final sign off. Procedures will be documented and saved for ease of retrieval and use. Backup will be saved in clearly marked folders on our Fiscal drive for ease of retrieval. Name(s) of the contact person(s) responsible for corrective action: Michael Soper, Fiscal Management Planned completion date for corrective action plan: Procedures are in use for QE 03/31/2026 ETA 9130 reports. Procedures will be documented by QE 06/30/2026 for ETA 9130 reports with revisions as needed.

View Audit 395248

Finding 1190984 (2025-010)

Material Weakness 2025

State of Delaware

DE

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

Reference Number: 2025-010 Prior Year Finding: 2024-004 Federal Agency: U.S. Department of Labor State Department Name: Department of Labor State Division Name: Division of Unemployment Insurance Federal Program: Unemployment Insurance, COVID-19 – Unemployment Insurance Assistance Listing Number: 17...

Reference Number: 2025-010 Prior Year Finding: 2024-004 Federal Agency: U.S. Department of Labor State Department Name: Department of Labor State Division Name: Division of Unemployment Insurance Federal Program: Unemployment Insurance, COVID-19 – Unemployment Insurance Assistance Listing Number: 17.225 Award Number and Year: UI372152255A10 (10/1/2021 – 12/31/2024) UI393142355A10 (10/1/2022 – 12/31/2025) 24A55UI000067 (10/1/2023 – 12/31/2026) 25A55UI000116 (1/1/2024 – 12/31/2027) Compliance Requirement: Eligibility Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Recommendation: The Division should review and enhance procedures and controls to ensure that claimant eligibility is properly determined, that documentation supporting claimant eligibility is retained, and that documentation is readily available for audit. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: For 3 of 60 claimants, the Division was unable to provide documentation that the claimant provided weekly updates. These cases (sample 2,7 and 36) relate to claimant weekly certifications and their responses to required eligibility questions for the applicable benefit weeks. Due to existing mainframe system limitations, the Division does not have the ability to directly view all claimant responses within the system interface. In preparation for the CLA review, Application Support generated a comprehensive report capturing weekly certification responses for all sampled claimants, based on Social Security Numbers. However, three claimants did not appear on this report, and therefore their responses could not be verified at the time of review. The Division has identified both short-term and long-term corrective actions to address this discrepancy:  Short-term solution: A service ticket has been submitted to the Application Support team to investigate and resolve the issue that caused these claimants to be excluded from the report. Once resolved, future reports are expected to consistently capture all claimant responses associated with weekly certifications. * Long-term solution: The Division recognizes the need for a modernized system to improve the efficiency and reliability of claims processing and adjudication. Current case management systems are outdated and have limited functionality. Implementation of an updated system will allow for automated capture of weekly certification responses, improved data accessibility, and enhanced identification of potential compliance issues requiring investigation. Name(s) of the contact person(s) responsible for corrective action: Rachael Griffith, UI Administrator Planned completion date for corrective action plan: March 31, 2027

View Audit 395248

Finding 1190972 (2025-004)

Material Weakness 2025

State of Delaware

DE

Cash Management Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

Reference Number: 2025-004 Prior Year Finding: No Federal Agency: U.S. Department of Health and Human Services State Department Name: Department of Health and Social Services State Division: Division of Public Health Federal Program: WIC Special Supplemental Nutrition Program for Women, Infants, and...

Reference Number: 2025-004 Prior Year Finding: No Federal Agency: U.S. Department of Health and Human Services State Department Name: Department of Health and Social Services State Division: Division of Public Health Federal Program: WIC Special Supplemental Nutrition Program for Women, Infants, and Children Assistance Listing Number: 10.557 Award Number and Year: 241DE701W1003 (10/1/2023 – 9/30/2024) Compliance Requirement: Cash Management Type of Finding: Significant Deficiency in Internal Control Over Compliance Recommendation: The Division should enhance procedures and controls to ensure that drawdown requests are reviewed and approved prior to submission. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Division confirmed the drawdown transaction was accurate and appropriate. The Division reiterated the Cash Management procedure to all staff and confirmed their understanding. In addition, the Division has in place a review process for new stsaff regarding procedures with confirmation of completion. There is an established training manual which has been reviewed to ensure it contains the most update to date process. Manuals and procedures will be reviewed regularly and updated, as needed. Name(s) of the contact person(s) responsible for corrective action: Gary Owens – primary Deborah Fisher and Jennifer Heesh – backups Planned completion date for corrective action plan: March 31, 2026.

View Audit 395248

Finding 1190944 (2025-001)

Material Weakness 2025

Uintah Basin Medical Center

UT

Material Weakness Significant Deficiency Matching / Level of Effort / Earmarking

2025-001 - Policies and Procedures for United Stated Department of Agriculture Reserve Funds Corrective action planned: Upon discovery of the missing documentation, the Medical Center’s finance department immediately initiated a review of the USDA loan agreement. The following actions have been take...

2025-001 - Policies and Procedures for United Stated Department of Agriculture Reserve Funds Corrective action planned: Upon discovery of the missing documentation, the Medical Center’s finance department immediately initiated a review of the USDA loan agreement. The following actions have been taken to remediate the material weakness: ● Policy Development: Management has drafted and implemented a formal “USDA Reserve Fund Policy.” This document explicitly outlines the annual funding requirements and the specific protocols for the disbursement and use of funds. ● Internal Control Implementation: We have established a monthly reconciliation process to verify that the required amounts are transferred and maintained timely. ● Resolution of Underfunding: As noted by the auditors, any historical funding discrepancies were fully addressed and rectified by September 2025. The accounts are currently funded in accordance with the loan covenants. Anticipated completion date: Completed September 2025 Contact person responsible for corrective action: Brent Hales, CFO

View Audit 395218

Finding 1190943 (2025-001)

Material Weakness 2025

El Dorado County Community Health Center

CA

Special Tests & Provisions Significant Deficiency Matching / Level of Effort / Earmarking

Corrective Action Plan: Subsequent to year-end, management has deposited the required funds into the reserve account to bring the organization into compliance with the USDA loan agreement. To prevent recurrence, management will strengthen its monitoring of debt covenant and reserve requirements by i...

Corrective Action Plan: Subsequent to year-end, management has deposited the required funds into the reserve account to bring the organization into compliance with the USDA loan agreement. To prevent recurrence, management will strengthen its monitoring of debt covenant and reserve requirements by implementing the following controls: •Establish a tracking schedule for all loan-related requirements, •Incorporation of reserve funding requirements into the organization’s cash flow planning process, and •Review by appropriate management personnel to ensure timely compliance with all loan agreement provisions. Responsible Party: Judy Stein, CFO Estimated Completion: 03/31/2026

View Audit 395213

Finding 1190939 (2025-006)

Material Weakness 2025

Rider University

NJ

Student Financial Aid Reporting Significant Deficiency

2025-006 Federal Pell Grant Program, Federal Direct Student Loans – Assistance Listing No. 84.063, 84.268 Recommendation: We recommend the University evaluate its policies and procedures around reporting student status changes to the NSLDS to ensure that all relevant information is being captured an...

2025-006 Federal Pell Grant Program, Federal Direct Student Loans – Assistance Listing No. 84.063, 84.268 Recommendation: We recommend the University evaluate its policies and procedures around reporting student status changes to the NSLDS to ensure that all relevant information is being captured and reported in accordance with applicable regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Rider University concurs with the finding. The Registrar's Office will partner with Financial Aid to regularly correct students who have a mismatched SSN or other NSLDS / NSC information. In cases where students are unable or unwilling to provide Rider with correct SSNs, we will not be able to report their enrollment. This particular student is no longer enrolled at Rider, so no action will be taken in his particular case. Name(s) of the contact person(s) responsible for corrective action: Daniel Pavlick and Jacqueline Watford Planned completion date for corrective action plan: Effective Immediately

View Audit 395206

Corrective Action Plans

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