Corrective Action Plans

Finding 1201390 (2025-002)

Material Weakness 2025

AZ

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

CORRECTIVE ACTION PLAN U.S. Department of Education | Arizona Department of Education Tuba City Unified School District No. 15 respectfully submits the following corrective action plan for the year ended June 30, 2025. Audit period: July 1, 2024 – June 30, 2025 The findings from the schedule of find...

CORRECTIVE ACTION PLAN U.S. Department of Education | Arizona Department of Education Tuba City Unified School District No. 15 respectfully submits the following corrective action plan for the year ended June 30, 2025. Audit period: July 1, 2024 – June 30, 2025 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINANCIAL STATEMENT FINDINGS 2025-001 INFORMATION TECHNOLOGY Type of Finding: Material Weakness in Internal Control Over Financial Reporting Condition/Context: The District did not establish internal control procedures over information technology systems to ensure proper protection of District and student data. The following control deficiencies were noted regarding the District’s information technology policies and procedures: • The District did not limit access within the District’s accounting software to only those areas in each employee’s job function. Several employees had full administrative access to the accounting software, including third-party consultants, without compensating manual controls. • The District did not have a formal written policy regarding system or software changes. • Data-sharing agreements with third party provides that had access to the District’s data were not provided. • Documentation was not provided to support that the IT systems generated electronic audit trail reports or change logs were being reviewed or analyzed. This would include systemgenerated incident or error reports. • Disaster recovery and contingency plans were not provided. Recommendation: To strengthen internal controls, the District should evaluate its procedures regarding information technology security. The District should review and establish IT policies and procedures to protect the District’s data, train employees, establish backup plans, disaster recover or contingency plans, and 3rd party security and data confidentiality agreements. System general irregularity reports, including incident or error reports should be reviewed on an ongoing basis. Corrective Action: The District will evaluate its procedures regarding information technology security. The District will review and establish IT policies and procedures to protect the District’s data, disaster recovery or contingency plans, and 3rd party security and data confidentiality agreements. Additionally, the District will review system generated irregularity reports, including incident or error reports on an ongoing basis. Planned completion date for corrective action plan: For the period ending June 30, 2026. Name of the contact person responsible for corrective action: Leah Begay, Business Manager

View Audit 395963

Finding 1201389 (2025-004)

Material Weakness 2025

Southern Oregon University

OR

Questioned Costs Student Financial Aid Eligibility

Eligibility - Direct Loan Awarding Federal Direct Student Loans (84.268) Recommendation: We recommend that the University enhance its policies and procedures related to the packaging and awarding of financial aid, particularly in situations requiring manual calculations or professional judgment, to ...

Eligibility - Direct Loan Awarding Federal Direct Student Loans (84.268) Recommendation: We recommend that the University enhance its policies and procedures related to the packaging and awarding of financial aid, particularly in situations requiring manual calculations or professional judgment, to ensure student eligibility is accurately determined and awards are properly calculated. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Effective immediately, we've added a required review step for any aid package that is adjusted using professional judgment. This review focuses specifically on confirming that annual loan limits and subsidized eligibility are recalculated correctly after any change. Staff has also received refresher training on subsidized loan eligibility and amounts, and how to verify that the correct amount is awarded when appropriate. In addition, we will incorporate periodic spot checks of files involving manual adjustments to ensure calculations are accurate and consistent. Name(s) of the contact person(s) responsible for corrective action: Erica Riggs Planned completion date for corrective action plan: Spring 2026, ongoing.

View Audit 395962

Finding 1201388 (2025-003)

Material Weakness 2025

Southern Oregon University

OR

Student Financial Aid Questioned Costs Significant Deficiency

Special Tests - Return to Title IV Funds (R2T4) Federal Direct Student Loans (84.268), Federal Pell Grant Program (84.063), Federal Supplemental Educational Opportunity Grants (84.007), and Teacher Education Assistance for College and Higher Education Grants (84.379) Recommendation: We recommend tha...

Special Tests - Return to Title IV Funds (R2T4) Federal Direct Student Loans (84.268), Federal Pell Grant Program (84.063), Federal Supplemental Educational Opportunity Grants (84.007), and Teacher Education Assistance for College and Higher Education Grants (84.379) Recommendation: We recommend that the University strengthen internal controls over the R2T 4 process by implementing standardized procedures, ensuring system calculations are accurate, and establishing consistent and documented review of R2T4 calculations prior to the return of Title IV funds. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Effective immediately, all R2T4 calculations will undergo a secondary review prior to funds being returned. The review will be documented via a shared document to ensure staff are consistently verifying withdrawal date, percentcompleted, return amounts per program, and timeliness. This document will be retained for audit purposes. We've also set internal deadlines to ensure funds are being returned within the 45-day requirement under Title IV. Calculations will be completed within 25 days of determining a withdrawal, and returns will be processed within 35 days. This will be tracked in a shared document that will also be retained for audit purposes. SOU is implementing a new Student Information System (SIS) beginning with the 2026-2027 academic year. Until we transition to the new SIS, known issues in the current SIS will be documented, and staff will manually review and override calculations where discrepancies are identified. As part of the new SIS implementation, we'll validate all R2T4 calculations to ensure system accuracy. All financial aid staff responsible for R2T4 processing will receive refresher training on calculation requirements, withdrawal date determination, and return timelines. We will also provide cross-training to additional staff to ensure continuity if there are additional staffing changes. Name(s) of the contact person(s) responsible for corrective action: Erica Riggs Planned completion date for corrective action plan: Fall 2026 and ongoing

View Audit 395962

Finding 1201312 (2025-001)

Material Weakness 2025

University of San Diego

CA

Questioned Costs Special Tests & Provisions Student Financial Aid

Corrective Action Plan – Management concurs with this finding. The exceptions resulted from two distinct scenarios: 1) An official withdrawal processed manually outside the standardized workflow. 2) An unofficial withdrawal triggered by a grade change submitted after the final grade deadline. In Fal...

Corrective Action Plan – Management concurs with this finding. The exceptions resulted from two distinct scenarios: 1) An official withdrawal processed manually outside the standardized workflow. 2) An unofficial withdrawal triggered by a grade change submitted after the final grade deadline. In Fall 2024, an undergraduate student’s official withdrawal was completed late in the semester. The Dean requested a Torero Hub Counselor to manually remove the course, bypassing the standardized workflow. While the Counselor notified the Registrar’s Office, the Office of Financial Aid was not included in the communication chain. To address this gap, the Office of Financial Aid will implement a biweekly report to monitor and verify any changes to student withdrawal statuses that fall outside the automated workflow. Management believes this enhancement will effectively prevent similar errors in the future. The second exception involved a Professional and Continuing Education (PCE) student. After the final grade submission deadline, the instructor updated the student’s grade to an ‘F’, which retroactively classified the student as an unofficial withdrawal. This change occurred after the Office of Financial Aid had already run the final Fall 2024 unofficial withdrawal report. PCE has been notified that grade changes are not permitted after the final grade deadline. Additionally, the Office of Financial Aid will now run the unofficial withdrawal report biweekly beyond the final grade due date to identify and verify any late changes to student withdrawal statuses. Management believes these measures will mitigate the risk of future occurrences. Completion date: September 2025 Persons responsible: Kellie Nehring, Director of Financial Aid and Diana Hannasch-Haag, Director of Retention – Online Degree Programs

View Audit 395955

Finding 1201296 (2025-102)

Material Weakness 2025

Navajo County

AZ

Cash Management Significant Deficiency Matching / Level of Effort / Earmarking

Matching (Significant Deficiency in Internal Control and Noncompliance) Assistance Listings number and program name: COVID-19 93.354 Public Health Emergency Recommendation: The County should establish procedures to track matching requirements in the general ledger, ensure all in-kind contributions a...

Matching (Significant Deficiency in Internal Control and Noncompliance) Assistance Listings number and program name: COVID-19 93.354 Public Health Emergency Recommendation: The County should establish procedures to track matching requirements in the general ledger, ensure all in-kind contributions are supported by proper documentation (e.g., timesheets), and review match compliance before use of federal funds. Contact Person(s): Catrina Jenkins, Emergency Management Manager Anticipated completion date: June 30, 2026 County Discussion: Concur: In coordination with the Arizona Department of Health Services (ADHS), the County will implement procedures to ensure matching activity is properly tracked within the general ledger. The County will also ensure that all in-kind contributions are supported by appropriate documentation, such as timesheets or other relevant supporting records, in accordance with federal grant requirements. Additionally, the County will implement a review process to verify that matching requirements are properly documented and met prior to the drawdown or use of federal funds. These measures are intended to strengthen internal controls and ensure compliance with federal grant matching requirements.

View Audit 395952

Finding 1201290 (2025-003)

Material Weakness 2025

Danville Area Community College

IL

Student Financial Aid Matching / Level of Effort / Earmarking Reporting

Student Financial Assistance Cluster – 84.063 and 84.268 Recommendation: We recommend the College 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 disag...

Student Financial Assistance Cluster – 84.063 and 84.268 Recommendation: We recommend the College 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 finding. Action taken in response to finding: The College utilizes a third-party, National Student Clearinghouse (NSC) to report to the National Student Loan Data System (NSLDS). Clarification was obtained from NSC regarding the process between NSC and NSLDS to prevent future occurrences. The NSC report will be submitted at the earliest possible date to provide additional time to review and verify that accurate data was transferred from NSC to NSLDS. Name of the contact person responsible for corrective action: Jonathan Jett, Director of Financial Aid Planned completion date for corrective action plan: June 30, 2026

View Audit 395941

Finding 1201288 (2025-002)

Material Weakness 2025

Danville Area Community College

IL

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

Student Financial Assistance Cluster– Assistance Listing Number: 84.007, 84.033, 84.063, and 84.268 Recommendation: We recommend the College implement procedures to review accuracy of information used to calculate R2T4s. Explanation of disagreement with audit finding: There is no disagreement with t...

Student Financial Assistance Cluster– Assistance Listing Number: 84.007, 84.033, 84.063, and 84.268 Recommendation: We recommend the College implement procedures to review accuracy of information used to calculate R2T4s. Explanation of disagreement with audit finding: There is no disagreement with the finding. Action taken in response to finding: Financial aid staff have added to our Return to Title IV procedures that we complete the calculation in Colleague and the U.S. Department of Education Common Origination & Disbursement to make sure all amounts are correct. The Financial Aid Manager completes the calculation, and the Director then reviews and sends any questions/concerns back to the Financial Aid Manager. The Director will approve once any concerns are addressed. Name of the contact person responsible for corrective action: Jonathan Jett, Director of Financial Aid Planned completion date for corrective action plan: June 30, 2026

View Audit 395941

Finding 1201284 (2025-001)

Material Weakness 2025

Danville Area Community College

IL

Questioned Costs Procurement, Suspension & Debarment Student Financial Aid

Student Financial Assistance Cluster– Assistance Listing Number: 84.007, 84.033, 84.063, and 84.268 Recommendation: We recommend the college update procedures around disbursements of credit balances and implement controls to ensure credit balances are being returned timely. Explanation of disagreeme...

Student Financial Assistance Cluster– Assistance Listing Number: 84.007, 84.033, 84.063, and 84.268 Recommendation: We recommend the college update procedures around disbursements of credit balances and implement controls to ensure credit balances are being returned timely. Explanation of disagreement with audit finding: There is no disagreement with the finding. Action taken in response to finding: Prior to FY23, students signed a form acknowledging and authorizing the College to have credit balances held on their account in the event there would be classes added and to purchase books. During FY2023, this procedure was discontinued for an unrelated reason and an unintended consequence was not meeting the 14-day requirement. A new procedure was developed and implemented in January, 2025. The 10 credit balance refunds from the population of 60 were from the period of July 1, 2024, through December 31, 2025. The prior year audit was released on November 15, 2025, at which point all credit balances had already been refunded under the prior procedures. There wasn’t an opportunity to correct the situation until the spring semester in 2025. Name of the contact person responsible for corrective action: Jonathan Jett, Director of Financial Aid Planned completion date for corrective action plan: Completed

View Audit 395941

Finding 1201280 (2025-001)

Material Weakness 2025

Community Service Society of New York

NY

Subrecipient Monitoring Reporting Significant Deficiency

Community Service Society (the Society) requires its subrecipients to submit their financial and progress program reports fifteen days after the end of the reporting period. This is done so that the Society can review the underlying documentation in those reports to ensure that proper payments are m...

Community Service Society (the Society) requires its subrecipients to submit their financial and progress program reports fifteen days after the end of the reporting period. This is done so that the Society can review the underlying documentation in those reports to ensure that proper payments are made to the subrecipients and, in turn, proper and timely reports are filed by the Society with the State of New York. There are instances when, because of delays in receipt of information from the subrecipients, or information from the subrecipients needs to be revised, reports are submitted late to the State of New York. The Society notifies the State of New York when reports will be submitted late. In addition, the Society is working with its subrecipients to improve their reporting procedures, as well as the timeliness and accuracy of their reports. This will result in the Society improving the timeliness of its reporting to the State of New York.

View Audit 395939

Finding 1201267 (2025-003)

Material Weakness 2025

Town of Foxborough, Massachusetts

MA

Cash Management Subrecipient Monitoring Eligibility

Assistance to Firefighters Grant Assistance Listing Number 97.044 Recommendation: We recommend that the Town establish and implement written procedures requiring the preparation, review, and retention of all federal grant reimbursement requests. Explanation of disagreement with audit finding: Mana...

Assistance to Firefighters Grant Assistance Listing Number 97.044 Recommendation: We recommend that the Town establish and implement written procedures requiring the preparation, review, and retention of all federal grant reimbursement requests. Explanation of disagreement with audit finding: Management agrees with the finding. Action taken in response to finding: The Town agrees with this recommendation and has updated its grant policies and procedures accordingly. Written procedures are now in place requiring the preparation, review, and retention of all federal grant reimbursement requests. Going forward, the Finance Department will review all requests, and approval from the Town Manager will be required prior to submission. This is not expected to be an issue going forward. Name(s) of the contact person(s) responsible for corrective action: Marie Almodovar, Finance Director Planned completion date for corrective action plan: Fiscal Year 2026.

View Audit 395927

Finding 1201264 (2025-005)

Material Weakness 2025

Lindenwood University

MO

Special Tests & Provisions Questioned Costs Student Financial Aid

Corrective Action Plan 2025-005: Management concurs with the finding. The University is revising its procedures to ensure all post-withdrawal disbursement offers are properly issued and documented and will implement additional controls and staff training to ensure future compliance with federal R2T4...

Corrective Action Plan 2025-005: Management concurs with the finding. The University is revising its procedures to ensure all post-withdrawal disbursement offers are properly issued and documented and will implement additional controls and staff training to ensure future compliance with federal R2T4 requirements. Completion Date: February 2026 Contact Person: Joanne Rozborski, Assistant Vice President, Student Financial Services

View Audit 395921

Finding 1201260 (2025-004)

Material Weakness 2025

Lindenwood University

MO

Special Tests & Provisions Questioned Costs Student Financial Aid

Corrective Action Plan 2025-004: Management concurs with the finding. The University is revising its procedures to ensure timely processing of all required R2T4 returns and is implementing additional internal controls and monitoring steps to ensure compliance with the 45-day return requirement. Comp...

Corrective Action Plan 2025-004: Management concurs with the finding. The University is revising its procedures to ensure timely processing of all required R2T4 returns and is implementing additional internal controls and monitoring steps to ensure compliance with the 45-day return requirement. Completion Date: February 2026 Contact Person: Joanne Rozborski, Assistant Vice President, Student Financial Services

View Audit 395921

Finding 1201252 (2025-002)

Material Weakness 2025

Lindenwood University

MO

Questioned Costs Student Financial Aid Eligibility

Corrective Action Plan 2025-002: Management concurs with the finding. The University has implemented controls to ensure that academic grade level progression and COA/OFA adjustments trigger a mandatory review of eligibility through the use of new reports and workflows. Completion Date: February 2026...

Corrective Action Plan 2025-002: Management concurs with the finding. The University has implemented controls to ensure that academic grade level progression and COA/OFA adjustments trigger a mandatory review of eligibility through the use of new reports and workflows. Completion Date: February 2026 Contact Person: Joanne Rozborski, Assistant Vice President, Student Financial Services

View Audit 395921

Finding 1201251 (2025-001)

Material Weakness 2025

Lindenwood University

MO

Special Tests & Provisions Subrecipient Monitoring Cash Management

Corrective Action Plan 2025-001: Management has made the appropriate updates and communicated the URLs for its contract and cost information to the Department of Education in July 2025 for its contract with BankMobile. Management will monitor the Department of Education’s cash management contract li...

Corrective Action Plan 2025-001: Management has made the appropriate updates and communicated the URLs for its contract and cost information to the Department of Education in July 2025 for its contract with BankMobile. Management will monitor the Department of Education’s cash management contract listing and will ensure that the contract is listed once the Department of Education updates its cash management contracts database as the most recent update to the cash management contracts database published by the Department of Education listed an update date of mid-January 2024. Completion Date: July 2025 Contact Person: Joanne Rozborski, Assistant Vice President, Student Financial Services

View Audit 395921

Finding 1201233 (2025-006)

Material Weakness 2025

City of Boston

MA

Questioned Costs Special Tests & Provisions Procurement, Suspension & Debarment

English Language Acquisition State Grants – Assistance Listing No. 84.365 Recommendation: We recommend Boston Public Schools review and enhance internal controls and procedures to ensure that they retain copies of correspondence with private schools to ensure completeness and accuracy of the calcula...

English Language Acquisition State Grants – Assistance Listing No. 84.365 Recommendation: We recommend Boston Public Schools review and enhance internal controls and procedures to ensure that they retain copies of correspondence with private schools to ensure completeness and accuracy of the calculation. Action taken in response to finding: In August 2025, Boston Public Schools developed and implemented a revised policy on equitable services that ensures that all communication is stored in a centralized folder for standard reviews. Name(s) of the contact person(s) responsible for corrective action: Marcela Mahecha, Director of Federal & State Grants, Programs, and Compliance Boston Public Schools Planned completion date for corrective action plan: August 31, 2025

View Audit 395895

Finding 1201166 (2025-002)

Material Weakness 2025

Virginia Housing Development Authority

VA

HUD Housing Programs Internal Control / Segregation of Duties Subrecipient Monitoring

Housing Voucher Cluster – Assistance Listing No. 14.871/14.879/14.EHV – PIC Submissions Recommendation: We recommend that the Authority review its Agent’s process for uploading data to the PIC system to ensure each HUD-50058 recertification gets submitted timely and accurately. Explanation of disagr...

Housing Voucher Cluster – Assistance Listing No. 14.871/14.879/14.EHV – PIC Submissions Recommendation: We recommend that the Authority review its Agent’s process for uploading data to the PIC system to ensure each HUD-50058 recertification gets submitted timely and accurately. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Authority is currently evaluating improvements to its data submission and reconciliation processes. This evaluation includes reviewing peer agency approaches to transmission monitoring, data verification, and centralized oversight controls. In addition, Virginia Housing has engaged a third-party consultant to assist with PIC submission oversight, reconciliation, and process refinement. The consultant’s involvement has supported a significant reduction in late and missing submissions and is helping to strengthen internal monitoring practices. Name of the contact person responsible for corrective action: Yilla Smith, Director, Housing Opportunity Programs and Initiatives Planned completion date for corrective action plan: September 30, 2026

View Audit 395856

Finding 1200840 (2025-010)

Material Weakness 2025

State of New Jersey

NJ

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring

Disaster Grants –Public Assistance (Presidentially Declared Disasters) (97.036) COVID-19 Disaster Grants –Public Assistance (Presidentially Declared Disasters) (97.036) State Agency: Department of Law and Public Safety Federal Agency: U.S. Department of Homeland Security Disaster Grants –Public Assi...

Disaster Grants –Public Assistance (Presidentially Declared Disasters) (97.036) COVID-19 Disaster Grants –Public Assistance (Presidentially Declared Disasters) (97.036) State Agency: Department of Law and Public Safety Federal Agency: U.S. Department of Homeland Security Disaster Grants –Public Assistance (Presidentially Declared Disasters) (97.036) COVID-19 Disaster Grants –Public Assistance (Presidentially Declared Disasters) (97.036) State Agency: Department of Law and Public Safety Federal Agency: U.S. Department of Homeland Security Reporting - Federal Funding Accountability and Transparency Act (FFATA) VIEWS OF RESPONSIBLE OFFICIALS AND CORRECTIVE ACTION PLAN The Department of Law and Public Safety (DLPS) acknowledges that certain FFATA reports for awards obligated in prior fiscal years were not submitted on time due to technical issues with the FEMA system, which prevented timely reporting. These technical issues have since been resolved. The DLPS has been in full compliance with FFATA reporting requirements since August 2024. COMPLETION DATE/ CONTACT PERSON & PHONE# Fiscal Year 2024 and Ongoing Salvatore Marcello (609) 882-2000 ext.3046 Salvatore.Marcello@njsp.gov

View Audit 395830

Finding 1200838 (2025-009)

Material Weakness 2025

State of New Jersey

NJ

Procurement, Suspension & Debarment Cash Management Reporting

Block Grants for Prevention and Treatment of Substance Abuse (93.959) COVID-19 –Block Grants for Prevention and Treatment of Substance Abuse (93.959) State Agency: Department of Human Services Federal Agency: U.S. Department of Health and Human Services Reporting – Federal Funding Accountability and...

Block Grants for Prevention and Treatment of Substance Abuse (93.959) COVID-19 –Block Grants for Prevention and Treatment of Substance Abuse (93.959) State Agency: Department of Human Services Federal Agency: U.S. Department of Health and Human Services Reporting – Federal Funding Accountability and Transparency Act (FFATA) VIEWS OF RESPONSIBLE OFFICIALS AND CORRECTIVE ACTION PLAN The Department of Human Services, Division of Mental Health and Addiction Services (DMHAS) does not dispute the FFATA upload dates for three (3) of the thirteen (13) subawards tested, but it disputes that such uploads were untimely. One subaward was uploaded only seven (7) days late. DMHAS submits that it substantially complied, no finding should issue and no corrective action is required in that instance. The two (2) remaining awards at issue were funded with the ARPA Block Grant. On March 24, 2025, U.S. DHHS took unprecedented action and issued a notice of early termination of ARPA funding, purportedly for cause because the Covid-19 health emergency had ended. The notice of early termination and subsequent, revised Notice of Award (NOA), required DMHAS to cease all activities. It also sought to revise the original grant terms, retroactive to the original September 1, 2021 project start date. By way of example, the revised NOA also includes new conditions and certifications required to draw down federal funds. DMHAS complied with the notice of early termination and immediately ceased all activities; it stopped issuing subaward letters, it ceased all subaward uploads into its Contract Information Management System, it stopped all reimbursements, and it stopped all FFATA uploads pending or in process. Also in response to the abrupt early termination of funding, DMHAS issued “stop work” orders to all impacted agencies and advised that there was no assurance of reimbursement as of the effective date of notice. Shortly thereafter, DMHAS joined numerous other State authorities and filed a formal complaint in federal district court, alleging that the early termination was unlawful and caused the States irreparable harm. On April 5, 2025, the court entered a temporary injunction and scheduled a hearing for preliminary injunctive relief. U.S. DHHS moved for reconsideration. Several weeks later, the Court entered a preliminary injunction enjoining the enforcement of the early termination of ARPA until further order of the Court. The cessation of FFATA uploads from the March termination to the receipt of injunctive relief was necessary to: 1. Maintain strict compliance with the revised NOA terms and conditions, including the written obligation to cease all activities; 2. Maintain strict compliance with the revised NOA terms and conditions, by issuing “stop work” orders; 3. Ensuring DMHAS’s “stop work” orders were not superseded by FFATA uploads or USA.Spending publications while the request for injunctive relief was pending, so no individual or entity (including the US Office of the Attorney General, US DHHS, or subawardee) could construe the upload as renewed authority to continue to expend funds through subaward end date; 4. Fully protect the prosecution of DMHAS’s claims in the pending, federal litigation, as well as DMHAS’s defenses; and 5. Mitigate DMHAS and subawardee damages in the underlying litigation. Based on the unprecedented early termination of block grant funding and ensuing litigation, DMHAS submits that the timeline to complete FFATA uploads was stayed. Such determination is consistent with the Court’s preliminary injunction, which makes clear that U.S. DHHS immediately treat any actions taken to implement or enforce the early funding terminations, as null and void and rescinded. Therefore, DMHAS should not be issued a FFATA finding that relates directly to the revised NOAs or the direction to cease all activities, and under these extraordinary circumstances, the uploads in question should be classified as non-reportable and immaterial, with no corrective action required. COMPLETION DATE/ CONTACT PERSON & PHONE# January 1,2025 Gordon Horvath, CFO (609) 544-6817 Gordon.Horvath@dhs.nj.gov John Fogliano, Deputy CFO (609) 438-4278 John.Fogliano@dhs.nj.gov

View Audit 395830

Finding 1200832 (2025-005)

Material Weakness 2025

State of New Jersey

NJ

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring

Covid-19 - Coronavirus Capital Projects Funds (21.029) State Agency: Department of Community Affairs Federal Agency: U.S. Department of the Treasury Reporting – Federal Funding Accountability and Transparency Act (FFATA) VIEWS OF RESPONSIBLE OFFICIALS AND CORRECTIVE ACTION PLAN The Department of Com...

Covid-19 - Coronavirus Capital Projects Funds (21.029) State Agency: Department of Community Affairs Federal Agency: U.S. Department of the Treasury Reporting – Federal Funding Accountability and Transparency Act (FFATA) VIEWS OF RESPONSIBLE OFFICIALS AND CORRECTIVE ACTION PLAN The Department of Community Affairs (DCA) has effectively executed a comprehensive corrective action plan to address and rectify findings related to the Federal Funding Accountability and Transparency Act (FFATA). The issue of late FFATA submissions was originally identified in the Single Audit for fiscal year 2024. In recognition of the overlap, DCA undertook all necessary updates and enhancements to its reporting processes prior to the fiscal year 2025 audit. The findings persisted into fiscal year 2025 due to the inability to make retroactive changes in SAM.gov for past updates. To mitigate this, the department has implemented robust protocols and systems designed to ensure the accuracy and timeliness of future financial disclosures, thereby preventing the recurrence of similar issues. COMPLETION DATE/ CONTACT PERSON & PHONE# June 01, 2025 Vera Ricciardi 609-930-1479 VeraEllen.Ricciardi@dca.nj.gov

View Audit 395830

Finding 1200825 (2025-002)

Material Weakness 2025

State of New Jersey

NJ

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring

Community Development Block Grants Disaster Recovery (14.269, 14.272) State Agency: Department of Community Affairs Federal Agency: U.S. Department of Housing and Urban Development Reporting – Federal Funding Accountability and Transparency Act (FFATA) VIEWS OF RESPONSIBLE OFFICIALS AND CORRECTIVE A...

Community Development Block Grants Disaster Recovery (14.269, 14.272) State Agency: Department of Community Affairs Federal Agency: U.S. Department of Housing and Urban Development Reporting – Federal Funding Accountability and Transparency Act (FFATA) VIEWS OF RESPONSIBLE OFFICIALS AND CORRECTIVE ACTION PLAN The Department of Community Affairs (DCA) acknowledges prior instances of delayed reporting for subawards under the Federal Funding Accountability and Transparency Act (FFATA). The most recent subaward reviewed under the FY 2025 single audit for compliance occurred in November 2021. Subsequent to this audit, DCA has undertaken and completed a thorough revision of its policies and procedures to enhance both accountability and transparency.Following these updates, DCA is currently in full compliance with all aspects of FFATA, including those related to timeliness. Additionally, DCA is committed to the continuous review and enhancement of its processes to maintain alignment with all federal requirements, thereby reinforcing its dedication to upholding the highest standards of compliance and reporting accuracy. COMPLETION DATE/ CONTACT PERSON June 01, 2025 Vera Ricciardi 609-930-1479 VeraEllen.Ricciardi@dca.nj.gov

View Audit 395830

Finding 1200807 (2025-003)

Material Weakness 2025

Rugby Public School District No. 5

ND

Allowable Costs / Cost Principles Questioned Costs Significant Deficiency

Contact Person – Mike McNeff, Superintendent Correcting Plan – The Superintendent and the Business Manager will work together to ensure that all expenditures incurred will follow internal control policies. Completion Data – June 30, 2026

View Audit 395817

Finding 1200787 (2025-003)

Material Weakness 2025

Lewis & Clark County

MT

Reporting Internal Control / Segregation of Duties Significant Deficiency

Federal Agency Name: U.S. Department of Treasury Assistance Listing Number: 21.027 Program Name: Coronavirus State and Local Fiscal Recovery Funds Finding Summary: Inaccurate reporting procedures were noted in 2 quarter’s performance reports. Corrective Action Plan: Each quarter, County grant staff ...

Federal Agency Name: U.S. Department of Treasury Assistance Listing Number: 21.027 Program Name: Coronavirus State and Local Fiscal Recovery Funds Finding Summary: Inaccurate reporting procedures were noted in 2 quarter’s performance reports. Corrective Action Plan: Each quarter, County grant staff report ARPA project expenditures that incurred during the reporting period in the online U.S. Department of Treasury’s COVID-19 Relief Hub (the Treasury portal). For all open projects, staff must manually enter total cumulative expenditures, current period obligations, and current period expenditures. In some cases, expenditures cannot be entered within the “Project Overview” section and must be entered separately in the “Expenditure” section of the Treasury portal, creating an additional step of manual data entry to record quarterly expenditures. The County has identified several system limitations within the Treasury portal that increase the risk of reporting errors. The Treasury portal does not calculate cumulative expenditures automatically; cumulative expenditure totals must be manually re-entered for each reporting period. Current period expenditures do not automatically roll into cumulative totals. The Treasury portal also lacks automated reconciliation or validation checks, meaning that errors in current period expenditure entries are not flagged and will not be reflected in cumulative expenditure totals. Additionally, the Treasury portal does not allow copying and pasting of data, requiring all amounts to be entered manually, which further increases the risk of data entry errors. To address these limitations and strengthen controls, County staff have implemented the following corrective actions: 1. Quarterly Project-Level Reconciliation Control A formal quarterly reconciliation process has been implemented at the individual project level. For each reporting period: • Each project expenditure that is recorded for the reporting period is reconciled to the internal project tracking spreadsheet, rather than only reconciling the total cumulative expenditures that appear on the front Project Overview page of the COVID-19 Relief Hub. o The internal tracking spreadsheet is updated quarterly using data from the General Ledger and individual ARPA project financial reports. • After entering expenditures into the Treasury portal is completed, staff re-open each project entry to verify accuracy and confirm that expenditures were entered correctly and no errors occurred. • Staff check for expenditure accuracy in both the “Project Status” and “Expenditure Status” tab in the Treasury portal, to ensure expenditures match and were recorded correctly. 2. Secondary Review Control All Treasury reports have a secondary review prior to submission. • The Grants Specialist prepares and enters the report. • The Grants and Procurement Director independently reviews reported amounts against the internal tracking spreadsheet. • Any discrepancies are resolved prior to report submission. This dual-review process provides segregation of duties and reduces the risk of undetected reporting errors. These procedures have been implemented and will be consistently applied for all future reporting periods to ensure accurate, complete, and reliable reporting. Responsible Individual(s): Ann McCauley, Grants and Procurement Director Elisa Fiaschetti, ARPA Program and Grants Specialist Anticipated Completion Date: January 2026

View Audit 395792

Finding 1200776 (2025-003)

Material Weakness 2025

Sioux Falls School District 49-5

SD

Student Financial Aid Period of Performance Reporting

Identifying Number: 2025-003: U.S. Department of Education: Federal Direct Student Loans – 84.268 Finding: During testing over enrollment reporting, one instance was identified where a student’s program begin date was incorrectly reported to NDSLDS. Corrective Action Taken or Planned: There were sev...

Identifying Number: 2025-003: U.S. Department of Education: Federal Direct Student Loans – 84.268 Finding: During testing over enrollment reporting, one instance was identified where a student’s program begin date was incorrectly reported to NDSLDS. Corrective Action Taken or Planned: There were several instances of dates submitted through the National Student Clearinghouse to NSLDS where dates were not aligning to submissions. In all but one case, those dates were confirmed to be matching the NSC submission and were not found to be erroneous. The one date is suspected to be due to a program change and those students with changes will be monitored by the Registrar and the Financial Aid Office. Contact person: Micah Hansen, Director of Financial Aid Status of finding – The above corrective actions will be implemented beginning January 1, 2026.

View Audit 395771

Finding 1200775 (2025-002)

Material Weakness 2025

Sioux Falls School District 49-5

SD

Student Financial Aid Significant Deficiency

Identifying Number: 2025-002: U.S. Department of Education: Federal Direct Student Loans – 84.268; Federal Pell Grant Program – 84.007 Finding: During testing over credit balances, it was noted that one student did not receive the refund on a timely basis. Corrective Action Taken or Planned: All sch...

Identifying Number: 2025-002: U.S. Department of Education: Federal Direct Student Loans – 84.268; Federal Pell Grant Program – 84.007 Finding: During testing over credit balances, it was noted that one student did not receive the refund on a timely basis. Corrective Action Taken or Planned: All scheduled disbursements will be reviewed to ensure they are provided on a timely basis and are applied correctly to prior award years. Business Office procedures and processing will be reviewed to ensure that credit balances are processed within the regulatory timeframe. New staff have been trained to monitor dates for compliance and have implemented checks with the Financial Aid Office. Contact person: Micah Hansen, Director of Financial Aid and Christine Goldsmith, Vice President - Finance Status of finding – The above corrective actions will be implemented beginning January 1, 2026.

View Audit 395771

Finding 1200771 (2025-002)

Material Weakness 2025

Hempstead Union Free School District

NY

Questioned Costs Significant Deficiency

Current Finding (2025-002) Missing Claims Auditor Approval As a part of the Special Education Cluster, the claims auditor approval was missing from 1 of 4 selections. Improper funds were distributed by the District that did not follow New York State requirements. Corrective Action Plan (a) Implement...

Current Finding (2025-002) Missing Claims Auditor Approval As a part of the Special Education Cluster, the claims auditor approval was missing from 1 of 4 selections. Improper funds were distributed by the District that did not follow New York State requirements. Corrective Action Plan (a) Implementation plan of actions: Management will ensure that all call disbursements have been reviewed by the claims auditor prior to releasing checks. (b) Implementation date: This will be implemented on March 31, 2026. (c) Person responsible for implementation: Jamal Scott, Assistant Superintendent for Business and Operations. (d) Completion date: This will be completed on or prior to June 30, 2026.

View Audit 395769

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