Corrective Action Plans

Finding 1173233 (2025-002)

Material Weakness 2025

IL

Internal Control / Segregation of Duties HUD Housing Programs Significant Deficiency

Supportive Housing for the Elderly (Section 202) Mortgage Financing– FAL No. 14.157 Section 202 Project Rental Assistance Contract – FAL No. 14.157 Recommendation: The Organization should ensure move-out notifications are provided to the accounting office in a timely manner to ensure the tenant's se...

Supportive Housing for the Elderly (Section 202) Mortgage Financing– FAL No. 14.157 Section 202 Project Rental Assistance Contract – FAL No. 14.157 Recommendation: The Organization should ensure move-out notifications are provided to the accounting office in a timely manner to ensure the tenant's security deposit is processed and refunded within 30 days of the move out date. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: Management will process the related move-out notifications in a timely manner and ensure future security deposits are refunded within the required timeline. Name(s) of the contact person(s) responsible for corrective action: Jennifer Medearis Planned completion date for corrective action plan: January 30, 2026

View Audit 386709

Finding 1173162 (2025-003)

Material Weakness 2025

Houston Independent School District

TX

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

Significant deficiency in Internal Control over Compliance and Questioned Costs Corrective Action Plan: Training will be provided to campuses and departments as well as Finance staff on the beginning and end dates of services and/or items to be purchased with grant funds. The Grant Development depar...

Significant deficiency in Internal Control over Compliance and Questioned Costs Corrective Action Plan: Training will be provided to campuses and departments as well as Finance staff on the beginning and end dates of services and/or items to be purchased with grant funds. The Grant Development department will reiterate to all grant program managers the beginning and end dates of the grants they manage to ensure compliance. Estimated Completion Date: February 28, 2026 Management Contact: Pamela Evans, Senior Executive Director of External Funding & Grant Development

View Audit 386581

Finding 1173160 (2025-002)

Material Weakness 2025

Houston Independent School District

TX

Significant Deficiency Equipment & Real Property Management Internal Control / Segregation of Duties

Significant deficiency in Internal Control over Compliance and Noncompliance Corrective Action Plan: A new Executive Manager of Inventory Management has been hired. He is tasked with training, updating physical inventory practices and requirements, and ensuring that physical inventories are complete...

Significant deficiency in Internal Control over Compliance and Noncompliance Corrective Action Plan: A new Executive Manager of Inventory Management has been hired. He is tasked with training, updating physical inventory practices and requirements, and ensuring that physical inventories are completed. Estimated Completion Date: March 31, 2026 Management Contact: Tony Warfield, Executive Director of Inventory Management

View Audit 386581

Finding 1173154 (2025-001)

Material Weakness 2025

University of Northwestern - St. Paul and Subsidiaries

MN

Student Financial Aid Reporting Significant Deficiency

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the University review its reporting procedures to ensure that students’ statuses are timely reported to NSLDS as required by regulations. Explanation of disagreement with audit finding: There is no dis...

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the University review its reporting procedures to ensure that students’ statuses are timely reported to NSLDS as required by regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We will update our procedures to make sure we are reporting accurate graduate dates, especially those that differ from the end of standard term date within a timely matter and enrollment effective dates in a timely manner. We have already begun reviewing this and are finding that the incidents found appear to be isolated. Therefore, we are updating procedure to include additional quality control checks to ensure that anomalies are found and resolved within the required timeframe. Name(s) of the contact person(s) responsible for corrective action: Hannah Blahnik Planned completion date for corrective action plan: May 2026

View Audit 386571

Finding 1173148 (2025-004)

Material Weakness 2025

Jefferson County

OR

Internal Control / Segregation of Duties Reporting Significant Deficiency

Recommendation: The County should establish oversight and review procedures to ensure the reports submitted are accurate and are submitted on time. Views of Responsible Officials and Planned Corrective Actions: The county understands this finding. The county will employ a grant management system to ...

Recommendation: The County should establish oversight and review procedures to ensure the reports submitted are accurate and are submitted on time. Views of Responsible Officials and Planned Corrective Actions: The county understands this finding. The county will employ a grant management system to ensure timely reporting that includes additional oversite of the program by department directors, finance, and county administration.

View Audit 386570

Finding 1173147 (2025-003)

Material Weakness 2025

Jefferson County

OR

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

Recommendation: The County should establish oversight and review procedures to ensure the amounts reported on the Oregon Health Authority Public Health Division Expenditures and Revenue Reports are accurate and adequately support the expenditures allowable under the grant. Views of Responsible Offic...

Recommendation: The County should establish oversight and review procedures to ensure the amounts reported on the Oregon Health Authority Public Health Division Expenditures and Revenue Reports are accurate and adequately support the expenditures allowable under the grant. Views of Responsible Officials and Planned Corrective Actions: The county understands this finding. The county will employ a system to ensure timely reporting that includes additional oversite of the program by the Health Director that ensures the reports are accurate and expenditures are allowable under the grant.

View Audit 386570

Finding 1173042 (2025-001)

Material Weakness 2025

Petal School District

MS

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Significant Deficiency

AUDITEE’S CORRECTIVE ACTION PLAN As required by 2 CFR 200.511, the Petal School District has prepared and hereby submits the following corrective action plan for the findings included in the Schedule of Findings and Questioned Costs for the year ended June 30, 2025: Finding Correction Action Plan De...

AUDITEE’S CORRECTIVE ACTION PLAN As required by 2 CFR 200.511, the Petal School District has prepared and hereby submits the following corrective action plan for the findings included in the Schedule of Findings and Questioned Costs for the year ended June 30, 2025: Finding Correction Action Plan Details 2025-001 a. Name of Contact Person Responsible for Corrective Action: Kristi Fimiano – Chief Financial Officer b. Corrective Action Planned: We will implement policies or procedures to establish an internal control system that will ensure strong financial accountability, including compliance with all federal grant requirements. c. Anticipated Completion Date: Immediately.

View Audit 386498

Finding 1172978 (2025-001)

Material Weakness 2025

Salvaging Teens at Risk, Inc. Dba North Texas Collegiate Academy

TX

Cash Management Reporting School Nutrition Programs

Background and Context: The District has a long-standing history of strong financial compliance and has not previously received audit findings related to internal controls or reporting. The error was isolated, not systemic, and was identified without evidence of intentional misreporting or ongoing r...

Background and Context: The District has a long-standing history of strong financial compliance and has not previously received audit findings related to internal controls or reporting. The error was isolated, not systemic, and was identified without evidence of intentional misreporting or ongoing risk. The District has implemented additional review steps as identified below to ensure continued accuracy in future submissions. Subject: Finding 2025-001: The finding indicates 2 errors were made in transferring data from the Daily Accuclaim Report to the Monthly Record of Meals Served at the East Campus resulting in an inaccurate request for reimbursement in the amount of approximately $55.00; these errors were made in 2 separate monthly reports during the 2025 fiscal year. Management response to FY 2025-001 Audit Findings The management of the Organization acknowledges the need for stronger internal controls in the administration of the Child Nutrition Meal Reimbursement Task Cluster. The agency implemented refresher training with the Administrative Assistant and the Campus Principal at the East Campus. Training was completed on November 18, 2025. Additionally, the agency has implemented stringent internal controls to ensure that all data regarding meal counts and reimbursement claims will be verified to ensure accuracy. It was noted that this weakness resulted in errors when the Administrative Assistant transferred data from the Daily Accuclaim to the Monthly Record of Meals Served. To prevent any errors in future claims, the following Standard Operating Procedure for all campuses was created: 1. The Administrative Assistant will tabulate meals served and enter daily totals on the Daily Accuclaim Report. The Campus Principal will provide a second count for daily totals and verify that the correct total was entered on the Daily Accuclaim Report. Both the Administrative Assistant and the Campus Principal will initial the Daily Accuclaim Report when verifications have been completed. 2. Data from the Daily Accuclaim Report will be transferred to the Monthly Record of Meals Served. Both the Administrative Assistant and the Campus Principal will verify that data has been correctly transferred and totaled accurately. Both the Administrative Assistant and the Campus Principal will initial the Monthly Record of Meals Served. 3. At the end of each month, Weekly Student Rosters, Daily Accuclaim Reports and the Monthly Record of Meals Served will be forwarded to the Director of Child Nutrition who will verify and initial all reports and enter data in TXUNPS for reimbursement. When all data for the month has been entered, a Summary Report will be printed and submitted to the Superintendent along with all documents for review and approval. Upon Superintendent written approval, the CNP Director will submit requests for reimbursement through TXUNPS. The agency will implement these Standard Operating Procedures beginning with the December 2025, Reimbursement Claim. It is believed that procedures requiring two personnel to review and sign off on all daily and monthly data and before final submission will ensure accuracy in Reimbursement Claims.

View Audit 386430

Finding 1172971 (2025-001)

Material Weakness 2025

Edadvance

CT

Allowable Costs / Cost Principles Subrecipient Monitoring Reporting

FINDING 2025-001 – Significant Deficiency in Internal Control over Compliance Description of Finding: The State Funding Agency audited the Child Nutrition program and found that the school food authority (SFA) was charged an indirect cost rate less than provided for in the indirect cost rate agreeme...

FINDING 2025-001 – Significant Deficiency in Internal Control over Compliance Description of Finding: The State Funding Agency audited the Child Nutrition program and found that the school food authority (SFA) was charged an indirect cost rate less than provided for in the indirect cost rate agreement and there was no document explaining how the difference would be handled with the nonprofit school food service account. They also identified that food expenses were included in the direct cost base. Food is considered a distorted fund and is not to be included in the direct cost base. Statement of Concurrence or Nonconcurrence: The Agency agrees with this finding during the Audit period and has made the necessary corrections. Corrective Action: The Organization has implemented procedures outlining how discrepancies will be managed. These procedures will be shared with relevant personnel, and training sessions will be conducted to ensure full compliance. Additionally, we have recalculated the indirect costs for FY2025, excluding the food expenses from the direct cost base. This recalculated amount was reflected in the revised financial reporting. Name of Contact Person: Richard Carmelich, Chief Operations Officer Projected Completion Date: June 30, 2025 QUESTIONED COSTS 1. There was $41,868 in questioned costs as a result of the 2025-001 audit finding. The Organization agreed that the cost was unallowable and revised the financial reporting to the satisfaction of the auditing State agency.

View Audit 386411

Finding 1172912 (2025-001)

Material Weakness 2025

Adler Graduate School

MN

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

Corrective actions were implemented for the Fall 2025 term to ensure all students are notified of Direct Loan disbursements and that sufficient documentation is maintained.

View Audit 386295

Finding 1172866 (2025-001)

Material Weakness 2025

Northwestern College

IA

Student Financial Aid Reporting Significant Deficiency

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the College re-evaluate its procedures and review policies surrounding reporting status changes to NSLDS to put a process in place to ensure the student status changes are being reported timely. Explan...

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the College re-evaluate its procedures and review policies surrounding reporting status changes to NSLDS to put a process in place to ensure the student status changes are being reported timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Early in the 2024-25 fiscal year, the College learned that this finding related to manually reported graduates and withdrawn students. Graduates reported during the automated file submittal process were reported as graduating at end of term, while graduates reported manually were reported as graduating on the College’s actual commencement date (one day different than end of term). The Registrar is now consistent in reporting graduation dates using the end of term for all graduating students. As for the reporting of withdrawals, the Registrar now manually updates the enrollment status and effective dates in NSLDS to ensure accurate and timely reporting. The findings in this audit period occurred prior to the above changes being implemented. Name(s) of the contact person(s) responsible for corrective action: Austin Nyhof, Registrar Planned completion date for corrective action plan: June 30, 2026

View Audit 386256

Finding 1172857 (2025-001)

Material Weakness 2025

Regents of the University of Minnesota

MN

Student Financial Aid Reporting Significant Deficiency

Action taken in response to finding: The Department of Education implementation delays contributed to the untimely reporting. In the event the Department of Education implements future changes, the University will evaluate impacted processes at that time to determine appropriate action. In addition,...

Action taken in response to finding: The Department of Education implementation delays contributed to the untimely reporting. In the event the Department of Education implements future changes, the University will evaluate impacted processes at that time to determine appropriate action. In addition, the Office of Student Finance has evaluated potential process improvements and is actively working with IT support to help automate this financial aid verification process. The University has also increased the frequency of queries within the student records system to identify and update/resolve the records in a timelier manner. Name(s) of the contact person(s) responsible for corrective action: Nate Peterson, Executive Director, Office of Student Finance Planned completion date for corrective action plan: February 2026 If the Department of Education has questions regarding this plan, please call Nate Peterson at 612-624-9442.

View Audit 386232

Finding 1172830 (2025-001)

Material Weakness 2025

Rural Health Corporation of Northeastern Pennsylvania

PA

Material Weakness Significant Deficiency

RHC of NEPA has taken significant steps to improve and rectify their sliding fee deficiency over its last 3 audits. RHC of NEPA has improved from 2 consecutive material weakness findings to having substantial improvement and reduced its status to a significant deficiency. It is important to note tha...

RHC of NEPA has taken significant steps to improve and rectify their sliding fee deficiency over its last 3 audits. RHC of NEPA has improved from 2 consecutive material weakness findings to having substantial improvement and reduced its status to a significant deficiency. It is important to note that 2 of the outstanding claims identified had timely sliding fee documents completed, however they were out of compliance due to human error of calculation of the sliding fee percentage. Education and internal audits which were implemented throughout the organization which have driven the marked improvement will continue to be disseminated throughout the organization. Clearly based on the improvement that has occurred, current processes and level of attention are the correct items to rectify and become fully compliant with sliding fee requirements. These policies will be the focus of additional training with a separate session being dedicated to the updated sliding fee implementation in February of 2026.

View Audit 386157

Finding 1172786 (2025-002)

Material Weakness 2025

Mt. San Antonio Community College District

CA

Subrecipient Monitoring Student Financial Aid Significant Deficiency

Views of Responsible Officials and Corrective Action Plan During Fall 2024, the Financial Aid Office experienced the departure of two key senior staff members who were primarily responsible for Return to Title IV (R2T4) processing and the reversal of federal funds. As a result, new staff were tempor...

Views of Responsible Officials and Corrective Action Plan During Fall 2024, the Financial Aid Office experienced the departure of two key senior staff members who were primarily responsible for Return to Title IV (R2T4) processing and the reversal of federal funds. As a result, new staff were temporarily assigned to manage these responsibilities during the transition period, which contributed to delays in returning funds within the required regulatory timeframe. A comprehensive review of all R2T4 calculations completed during the 2024–2025 aid year determined that records processed prior to mid-November 2024 had over awarded funds returned within the applicable 45- and 30-day regulatory timeframes. This timeframe aligns with the period when the responsible staff members announced their retirements. To resolve this matter and prevent recurrence, the District has implemented the following corrective measures. Targeted R2T4 Training: Staff responsible for Return to Title IV (R2T4) processing and disbursement reversals are in the process of completing the National Association of Student Financial Aid Administrators (NASFAA) R2T4 credential training. This certification will ensure staff possess consistent, up-to-date knowledge of federal requirements around the R2T4 process to include the timelines required to return over-awarded funds to the department. Automated Monitoring Report: A recurring monitoring report has been established to identify students with pending Returns of Title IV (R2T4) funds. The report automatically flags cases exceeding 30 days and, for students who withdrew prior to the start of the term, those exceeding 20 days. Department managers will generate and review this report on a weekly basis to ensure timely compliance with federal return requirements. In instances where pending returns are identified as being past the alert threshold, Financial Aid management will promptly coordinate with Fiscal Services to expedite the return of funds and document resolution actions. Cross-Training for Continuity of Operations: Ongoing cross-training has been implemented among Financial Aid staff to ensure sufficient coverage during vacations, extended leaves, or unexpected absences. At least two designated staff members will be fully trained and authorized to perform R2T4 calculations and return processing to prevent delays in compliance during personnel transitions. These measures strengthen accountability, monitoring, and collaboration between the Financial Aid and Fiscal Services departments to ensure full compliance with federal cash management and return regulations.

View Audit 386075

Finding 1172727 (2025-001)

Material Weakness 2025

Towpath Trail High School

OH

Subrecipient Monitoring Reporting Significant Deficiency § 200.208 § 200.328

Finding Number: 2025-001 Planned Corrective Action: Towpath Trail High School will comply with all federal grant compliance requirements – including reporting requirements and deadlines. Anticipated Completion Date: 2/14/2026 Responsible Contact Person: Dave Massa, Treasurer

View Audit 385998

Finding 1172611 (2025-001)

Material Weakness 2025

Satellite St. Andrew's Manor, LLC

CA

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Finding 2025-001: Reportable finding considered a significant deficiency – Activities Allowed and Unallowed Management at Satellite Affordable Housing Associates Property Management (“SAHA PM”) is in agreement with the finding and intends to follow the requirements of the HUD Regulatory Agreement in...

Finding 2025-001: Reportable finding considered a significant deficiency – Activities Allowed and Unallowed Management at Satellite Affordable Housing Associates Property Management (“SAHA PM”) is in agreement with the finding and intends to follow the requirements of the HUD Regulatory Agreement in the future. Management has reimbursed the property $28,539, an amount equal to HCD’s net cash flow payment from FY 2024. Management will reimburse the property the $12,600 for FY 2025 and FY 2024 annual monitoring fees paid to HCD. Management will seek to obtain HUD approval on form HUD-9250 for payment of these fees from residual receipts.

View Audit 385881

Finding 1172608 (2025-003)

Material Weakness 2025

Neighborhood Properties, Inc.

OH

Allowable Costs / Cost Principles Reporting Significant Deficiency

Continuum of Care Program – Assistance Listing No. 14.267 Recommendation: Management should implement a strategy of using time and effort documentation in determining payroll costs charged to grants, including use of backward-looking reconciliations when necessary. Explanation of disagreement with a...

Continuum of Care Program – Assistance Listing No. 14.267 Recommendation: Management should implement a strategy of using time and effort documentation in determining payroll costs charged to grants, including use of backward-looking reconciliations when necessary. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management of the Organization is in the process of implementing a policy to track time and effort of all employees based on actual time spent by grant. Some employees work directly with tenants on a HUD funded grant on a regular basis, but all employees may work directly with a tenant on a HUD funded grant or may perform administrative work specifically on a HUD funded grant from time to time. Therefore, all employees will track time spent with tenants or specifically with a grant in the Yardi Tenant Contact system. • Housing Support Staff and Management will document grant allocations as required. • Backoffice employees, such as those working in HR or Accounting, will be allocated to Admin and Support within the HUD funded grant, based on time spent. • Maintenance employees can be allocated to tenants based on units and work orders. • Formal review of payroll and grant allocations, based on time sheets, will take place by March 30th 2026, and on a monthly basis going forward. Potential true-up to take place after each review. Name(s) of the contact person(s) responsible for corrective action: Susan Keshen, Fractional CFO Planned completion date for corrective action plan: March 31, 2026

View Audit 385864

Finding 1172574 (2025-001)

Material Weakness 2025

Neighborhood Properties, Inc.

OH

HUD Housing Programs Subrecipient Monitoring Significant Deficiency

Continuum of Care Program – Assistance Listing No. 14.267 Recommendation: Management should strengthen internal controls to ensure timely updates of tenant subsidy amounts based on the contract terms and implement a review process to verify that HAP payments align with the most recent annual contrac...

Continuum of Care Program – Assistance Listing No. 14.267 Recommendation: Management should strengthen internal controls to ensure timely updates of tenant subsidy amounts based on the contract terms and implement a review process to verify that HAP payments align with the most recent annual contract documentation. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management of the Organization has established a system of internal control monitoring and review to ensure HAP payments align with the most recent annual contract documentation. Compliance Officer reviews annual reports for all clients every month. Spreadsheet is reviewed for variance and adjustments made as needed. Name(s) of the contact person(s) responsible for corrective action: Susan Keshen, Fractional CFO Planned completion date for corrective action plan: August 31, 2025.

View Audit 385864

Finding 1172540 (2025-001)

Material Weakness 2025

Connected Lane County

OR

Reporting Significant Deficiency Internal Control / Segregation of Duties § 200.212 § 200.512

Finding 2025-001: Significant deficiency in internal controls over compliance and immaterial noncompliance Corrective Action Planned: Connected Lane County updated internal control processes, approved by the board on 05.21.25, which significantly reduced year end processing delays and the number of ...

Finding 2025-001: Significant deficiency in internal controls over compliance and immaterial noncompliance Corrective Action Planned: Connected Lane County updated internal control processes, approved by the board on 05.21.25, which significantly reduced year end processing delays and the number of corrections needed to complete the audit. The audit for fiscal year 2025 ending on June 30, 2025 was completed within seven months of the end of the fiscal year. Person(s) Responsible: Jesse Nelson, Executive Director and Mary Bell, Finance Manager Anticipated Completion Date: 09.01.2025

View Audit 385818

Finding 1172539 (2025-002)

Material Weakness 2025

Zepf Center

OH

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

Fatherhood Connection (FIRE) – Assistance Listing No. 93.086 Recommendation: The Center should implement controls for review of payment limits prior to distributing funds to program participants. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action ...

Fatherhood Connection (FIRE) – Assistance Listing No. 93.086 Recommendation: The Center should implement controls for review of payment limits prior to distributing funds to program participants. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management is implementing a tool to monitor and track the incentive payments. Name(s) of the contact person(s) responsible for corrective action: David Oppenlander, CFO Planned completion date for corrective action plan: January 31, 2026

View Audit 385809

Finding 1172537 (2025-001)

Material Weakness 2025

Zepf Center

OH

Reporting Significant Deficiency Internal Control / Segregation of Duties

Fatherhood Connection (FIRE) – Assistance Listing No. 93.086 Recommendation: The Center should implement a strategy of using time and effort documentation in determining payroll costs charged to grants. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. ...

Fatherhood Connection (FIRE) – Assistance Listing No. 93.086 Recommendation: The Center should implement a strategy of using time and effort documentation in determining payroll costs charged to grants. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management is in the process of implementing a policy to track time and effort of salaried employees. Name(s) of the contact person(s) responsible for corrective action: David Oppenlander, CFO Planned completion date for corrective action plan: January 31, 2026

View Audit 385809

Finding 1172523 (2025-001)

Material Weakness 2025

Drake University

IA

Student Financial Aid Reporting Significant Deficiency

Recommendation: We recommend the University reevaluate its procedures and review policies surrounding reporting status changes to NSLDS to put a process in place to ensure the student status changes are being reported timely. Explanation of disagreement with audit finding: There is no disagreement w...

Recommendation: We recommend the University reevaluate its procedures and review policies surrounding reporting status changes to NSLDS to put a process in place to ensure the student status changes are being reported timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Registrar’s Office has put in place steps to ensure that any exception reports from the Clearinghouse are immediately reviewed and any exceptions are addressed and resubmitted. In addition, the Registrar’s Office has put in place steps to ensure that students are submitted to the Clearinghouse early enough so that they will still be submitted by the Clearinghouse to NSLDS timely, even if there are delays by the Clearinghouse. Name(s) of the contact person(s) responsible for corrective action: Kristin Dvorak, University Registrar; Kevin Moenkhaus, Associate Registrar Planned completion date for corrective action plan: January 2026

View Audit 385745

Finding 1172516 (2025-001)

Material Weakness 2025

Lubbock Christian University

TX

Student Financial Aid Significant Deficiency Internal Control / Segregation of Duties

Finding 2025-001 Required Disclosures Views of Responsible Officials The University agrees with the auditor’s findings and recommendations. Corrective Action Plan The University has participated in educational opportunities provided by the Department of Education and implemented procedures to ensure...

Finding 2025-001 Required Disclosures Views of Responsible Officials The University agrees with the auditor’s findings and recommendations. Corrective Action Plan The University has participated in educational opportunities provided by the Department of Education and implemented procedures to ensure timely disclosure. All subsequent updates have been completed. Implementation Date Immediate Individual(s) Responsible Brandon Goen, Controller

View Audit 385744

Finding 1172439 (2025-002)

Material Weakness 2025

Bay De Noc Community College

MI

Special Tests & Provisions Student Financial Aid Subrecipient Monitoring

Noncompliance with Enrollment Status Change Reporting. Auditor Description of Condition and Effect. Of 18 enrollment status changes tested, we noted 1 change that was not reported to the National Student Loan Data System (NSLDS) within 60 days due to a student being assigned a different coding struc...

Noncompliance with Enrollment Status Change Reporting. Auditor Description of Condition and Effect. Of 18 enrollment status changes tested, we noted 1 change that was not reported to the National Student Loan Data System (NSLDS) within 60 days due to a student being assigned a different coding structure within the College's system which resulted in the student being excluded from the standard status-change reporting process. As a result of university personnel using the incorrect semester start dates. As a result of this condition, the College was temporarily out of compliance with enrollment reporting requirements. Auditor Recommendation. We recommend the College review and update its enrollment reporting processes to ensure that all students-including those with unique or foreign-student coding-are captured in routine status-change monitoring and NSLDS reporting procedures. The College should implement controls to detect nonstandard coding and ensure that all enrollment changes are identified and reported within required federal timelines. Corrective Action. Bay College took swift action after determining some students were being excluded in our enrollment reporting. Our reporting process was excluding students who were noted as being a citizen of a foreign county. We now review these students prior to each reporting cycle to determine if they should be included in the reporting. The Financial Aid team reviews this report to determine if the student is eligible for federal student aid. Students who are eligible are indicated and provided to the Institutional Effectiveness team to include in the enrollment reporting. This process is completed prior to each reporting cycle. For students who were not included in our prior reporting, the Financial Aid team working directly with the Institutional Effectiveness team, determined which should be reported and completed their enrollment reporting directly through NSLDS. Responsible Person. Ruth Carlson, Director of Financial Aid. Anticipated Completion Date. June 30, 2026

View Audit 385572

Finding 1172432 (2025-002)

Material Weakness 2025

Eagle Advantage Schools, Iync Dba Advantage Academ

TX

Allowable Costs / Cost Principles School Nutrition Programs Significant Deficiency

Finding 2025-002: Allowable cost-Significant deficiency in internal controls over compliance. Management Response The District purchased supplies on the District credit card. There was no purchasing requisition entered or approval prior to making the purchase. The District conducted procurement trai...

Finding 2025-002: Allowable cost-Significant deficiency in internal controls over compliance. Management Response The District purchased supplies on the District credit card. There was no purchasing requisition entered or approval prior to making the purchase. The District conducted procurement training in August 2025. The District will conduct another training in October 2025 to discuss procurement requirements regarding credit card purchases. If a credit card purchase is made without a requisition, the accounts payable staff will notify the management prior to the credit card payment.

View Audit 385564

Corrective Action Plans

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