Corrective Action Plans

Finding 1214894 (2025-001)

Material Weakness 2025

American Academy of Addiction Psychiatry, Inc.

RI

Significant Deficiency Internal Control / Segregation of Duties § 200.512

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

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

View Audit 401656

Finding 1214879 (2025-001)

Material Weakness 2025

Newburyport Housing Authority

MA

HUD Housing Programs Internal Control / Segregation of Duties Subrecipient Monitoring

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

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

View Audit 401612

Finding 1214868 (2025-002)

Material Weakness 2025

Town of Lincoln

RI

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

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

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

View Audit 401582

Finding 1214863 (2025-004)

Material Weakness 2025

Saraland Manor, Inc.

MS

Internal Control / Segregation of Duties Subrecipient Monitoring HUD Housing Programs

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

View Audit 401563

Finding 1214776 (2025-001)

Material Weakness 2025

Catholic Charities of the Diocese of St. Cloud

MN

Eligibility Significant Deficiency

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

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

View Audit 401515

Finding 1214745 (2025-002)

Material Weakness 2025

Woods Hole, Martha's Vineyard and Nantucket Steamship Authority

MA

Internal Control / Segregation of Duties Significant Deficiency

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

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

View Audit 401486

Finding 1214723 (2025-001)

Material Weakness 2025

South Coastal Counties Legal Services, Inc. and Affiliate

MA

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

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

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

View Audit 401473

Finding 1214672 (2025-002)

Material Weakness 2025

Mental Health & Addiction Association of Oregon

OR

Reporting Significant Deficiency

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

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

View Audit 401407

Finding 1214630 (2025-002)

Material Weakness 2025

BAGDAD UNIFIED SCHOOL DISTRICT NO. 20

AZ

Special Tests & Provisions Subrecipient Monitoring Significant Deficiency § 200.303

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

View Audit 401322

Finding 1214601 (2025-002)

Material Weakness 2025

TOWN OF STERLING

MA

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

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

View Audit 401275

Finding 1214570 (2025-006)

Material Weakness 2025

Municipality of Coamo

PR

Reporting Significant Deficiency

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

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

View Audit 401230

Finding 1214568 (2025-005)

Material Weakness 2025

Municipality of Coamo

PR

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

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

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

View Audit 401230

Finding 1214559 (2025-004)

Material Weakness 2025

Municipality of Coamo

PR

Procurement, Suspension & Debarment Subrecipient Monitoring Significant Deficiency

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

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

View Audit 401230

Finding 1214556 (2025-003)

Material Weakness 2025

Municipality of Coamo

PR

Equipment & Real Property Management Significant Deficiency

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

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

View Audit 401230

Finding 1214480 (2025-002)

Material Weakness 2025

Lodge Grass School District No. 27 & 2

MT

Reporting Significant Deficiency Internal Control / Segregation of Duties § 200.303

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

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

View Audit 401189

Finding 1214469 (2025-001)

Material Weakness 2025

Hunter Health Clinic, Inc.

KS

Significant Deficiency

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

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

View Audit 401176

Finding 1214412 (2025-003)

Material Weakness 2025

The Housing and Redevelopment Commission of the City of Aberdeen, Sd

SD

Allowable Costs / Cost Principles HUD Housing Programs Reporting

Finding 2025-003 Federal Agency Name – Department of Housing and Urban Development Assistance Listing Number – 14.871 & 14.879 Program Name – Housing Voucher Cluster Finding Summary: The Commission has a process in place for employees to track hours worked to federal and non-federal programs but pay...

Finding 2025-003 Federal Agency Name – Department of Housing and Urban Development Assistance Listing Number – 14.871 & 14.879 Program Name – Housing Voucher Cluster Finding Summary: The Commission has a process in place for employees to track hours worked to federal and non-federal programs but payroll allocations are made based on budgets expectations, not actual, and review is not occurring to determine if allocations need to be updated throughout the Responsible Individuals: Brett Bill, Executive Director Corrective Action Plan: Processes will be updated to ensure that payroll allocations are being compared to allocations to ensure they are correctly allocated. Anticipated Completion Date: 5/1/2026

View Audit 401098

Finding 1214398 (2025-002)

Material Weakness 2025

Lodge Grass School District No. 27 & 2

MT

Reporting Significant Deficiency Internal Control / Segregation of Duties § 200.303

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

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

View Audit 401040

Finding 1214396 (2025-003)

Material Weakness 2025

Suffolk County Community College

NY

Student Financial Aid Matching / Level of Effort / Earmarking Reporting § 200.303

Student Financial Aid Cluster – Assistance Listing 84.063 and 84.268 Recommendation: The College should evaluate their procedures and review policies surrounding reporting enrollment effective dates and program enrollment effective dates NSLDS. Explanation of disagreement with audit finding: There i...

Student Financial Aid Cluster – Assistance Listing 84.063 and 84.268 Recommendation: The College should evaluate their procedures and review policies surrounding reporting enrollment effective dates and program enrollment effective dates NSLDS. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Through the review of program reporting and campus reporting, the college will identify the cause for the data error. The college will explore the impact of branch campuses and the potential to shift to a single college reporting model. The following specific steps will be completed. 1. Identify and Analyze the Issues 2. Root Cause Analysis 3. Corrective Measures 4. Automation: Implement automated checks and balances to ensure data integrity before files are processed and sent. Name(s) of the contact person(s) responsible for corrective action: Patricia Munsch, Ph.D. Vice President for Student Affairs Nancy Brewer, College Director for Financial Aid Cheryl Eldredge, College Associate Dean for Registrar and Master Schedule Planned completion date for corrective action plan: December 31, 2026

View Audit 401037

Finding 1214394 (2025-002)

Material Weakness 2025

Suffolk County Community College

NY

Student Financial Aid Reporting Significant Deficiency

Student Financial Aid Cluster – Assistance Listing 84.063 and 84.268 Recommendation: The College should review their reporting internal controls and procedures to ensure that they require students' statuses to be reported timely to NSLDS as required by federal regulations. The College should evaluat...

Student Financial Aid Cluster – Assistance Listing 84.063 and 84.268 Recommendation: The College should review their reporting internal controls and procedures to ensure that they require students' statuses to be reported timely to NSLDS as required by federal regulations. The College should evaluate their procedures and review policies surrounding reporting status changes to NSLDS to ensure the enrollment effective date reported to NSLDS aligns with the College’s last date of attendance. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Through the work of a college-wide task force the following actions will be taken in response to the finding. The task force will include representatives from Information Technology, Institutional Research, Financial Aid, Registrar, along with Ellucian consultants. To summarize the steps and details of implementation to the specific areas are as follows: 1. Review Reporting Controls and Procedures 2. Address Error Code 22 3. Review Procedures Surrounding Reporting Status Changes 4. Assure Accuracy in Reporting Enrollment Effective Date Name(s) of the contact person(s) responsible for corrective action: Patricia Munsch, Ph.D. Vice President for Student Affairs Nancy Brewer, College Director for Financial Aid Planned completion date for corrective action plan: December 31, 2026

View Audit 401037

Finding 1214262 (2025-101)

Material Weakness 2025

Mohave County Community College District

AZ

Student Financial Aid Reporting Significant Deficiency

During fiscal year 2025, differences were identified between amounts reported on the Fiscal Operations Report and Application to Participate (FISAP) and the District’s finalized accounting records due to yearend adjustments recorded after submission of the report. The District recognizes the importa...

During fiscal year 2025, differences were identified between amounts reported on the Fiscal Operations Report and Application to Participate (FISAP) and the District’s finalized accounting records due to yearend adjustments recorded after submission of the report. The District recognizes the importance of ensuring reported amounts reconcile fully to underlying accounting records and acknowledges that additional coordination between Business Services and Financial Aid is necessary to strengthen reporting accuracy. To address this finding, the District will undertake the following actions: 1. Develop a formal reconciliation process between the general ledger, student financial aid reporting, and FISAP submissions prior to report filing. 2. Establish documented timelines to ensure year-end accounting adjustments are evaluated and incorporated into federal reporting, when applicable. These actions are intended to improve reporting accuracy, strengthen interdepartmental communication, and ensure compliance with federal reporting requirements under the Student Financial Assistance Cluster.

View Audit 400990

Finding 1214249 (2025-005)

Material Weakness 2025

HABITAT FOR HUMANITY OF KANSAS CITY

MO

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

Allowable Costs and Activities – Assistance Listing No. 21.027 Recommendation: Management should ensure that all disbursements are reviewed and approved in accordance with established policies prior to payment and that evidence of such approvals is properly documented and retained in the audit trail...

Allowable Costs and Activities – Assistance Listing No. 21.027 Recommendation: Management should ensure that all disbursements are reviewed and approved in accordance with established policies prior to payment and that evidence of such approvals is properly documented and retained in the audit trail. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization will review our procedures surrounding ensuring that the proper review and approval is obtained for all disbursements prior to payment, and will establish policies, procedures, and internal controls to retain these approvals as part of the audit trail. Name of the contact person responsible for corrective action: Lindsay Hicks Planned completion date for corrective action plan: June 30, 2026

View Audit 400970

Finding 1214245 (2025-004)

Material Weakness 2025

HABITAT FOR HUMANITY OF KANSAS CITY

MO

Procurement, Suspension & Debarment Eligibility Significant Deficiency

Suspension and Debarment – Assistance Listing No. 21.027 Recommendation: Management should implement a formal process to document and retain evidence of suspension and debarment verification for all applicable vendors, including verification dates. Management should also establish periodic review pr...

Suspension and Debarment – Assistance Listing No. 21.027 Recommendation: Management should implement a formal process to document and retain evidence of suspension and debarment verification for all applicable vendors, including verification dates. Management should also establish periodic review procedures to ensure continued vendor eligibility in accordance with Federal requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization will establish and/or revise policies, procedures, and internal controls to ensure the documentation and retention of evidence of suspension and debarment verification, including periodic review of all applicable vendors. Name of the contact person responsible for corrective action: Lindsay Hicks Planned completion date for corrective action plan: June 30, 2026

View Audit 400970

Finding 1214234 (2025-009)

Material Weakness 2025

ATLANTIC CITY HOUSING AUTHORITY & URBAN REDEVELOPMENT AGENCY

CA

HUD Housing Programs Special Tests & Provisions Significant Deficiency

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Catalog Numbers: 14.871 and 14.EHV Noncompliance – N. Special Tests and Provisions - Reasonable Rent Non Compliance Material to the Financial Statements: No Significant Deficiency...

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Catalog Numbers: 14.871 and 14.EHV Noncompliance – N. Special Tests and Provisions - Reasonable Rent Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Criteria: Reasonable Rent. The Authority must do the following: The Authority must determine that the rent to owner is reasonable at the time of initial leasing. Also, the Authority must determine reasonable rent during the term of the contract (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a 5 percent decrease in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. The Authority must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Condition: Based upon inspection of the Authority’s files and discussion with management, the Authority did not have procedures or software in place to perform the required evaluation of rent reasonableness. Context: There were approximately fifteen(15) newly leased units in the Emergency Housing Vouchers Program. Of a sample size of two (2) newly leased units in the Emergency Housing Vouchers Program, two (2) unit's documentation of reasonable rent was not available for examination. Our sample size is statistically valid. Known Questioned Costs: Unknown Cause: There is a significant deficiency in internal controls over the compliance for the special tests and provisions type of compliance related to reasonable rent. The Authority experienced high turnover and did not properly train employees in the HCV department, which resulted in the Authority having a limited capacity to perform rent reasonableness calculations and properly maintain and monitor a system of internal controls that reasonably assures the program is in compliance with program requirements. Effect: The Section 8 Housing Choice Vouchers Program is in non-compliance with the special tests and provisions type of compliance related to reasonable rent. Recommendation: We recommend that the Authority establish a software and implement a process whereby Authority personnel are hired and trained on performing the appropriate rent reasonableness procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority has recognized the deficiencies in the Section 8 Housing Voucher Cluster Programs and will train staff on rent reasonableness and implement internal control procedures that will ensure compliance with federal regulations. Malcom Isler, HCV Program Director/Interim Deputy Executive Director is responsible for ensuring proper internal controls are in place to prevent significant deficiencies and material weaknesses from occurring and is expected to be completed by July 31, 2026.

View Audit 400937

Finding 1214233 (2025-007)

Material Weakness 2025

ATLANTIC CITY HOUSING AUTHORITY & URBAN REDEVELOPMENT AGENCY

CA

HUD Housing Programs Special Tests & Provisions Significant Deficiency

Finding 2025-007: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Catalog Numbers: 14.871 and 14.EHV Noncompliance – N. Special Tests and Provisions – HQS Enforcement Non Compliance Material to the Financial Statements: Yes Sig...

Finding 2025-007: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Catalog Numbers: 14.871 and 14.EHV Noncompliance – N. Special Tests and Provisions – HQS Enforcement Non Compliance Material to the Financial Statements: Yes Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Criteria: HQS Enforcement. The PHA must inspect the unit leased to a family at least annually to determine if the unit meets the Housing Quality Standards (HQS) and the Authority must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). For units that fail inspection the PHA must correct all life threatening HQS deficiencies within 24 hours and all other deficiencies within 30 days. If deficiencies are not correcting in the required time period, the Authority must abate housing assistance payments in accordance with their admin plan. Condition: Based upon inspection of the Authority’s files and on discussions with management, the Authority did not provide support for two (2) failed inspections. Context: Of a sample size of two (2) failed inspections, the Authority did not provide support for two (2) failed inspections selected for testing, and did not abate housing assistance payments for the two (2) units selected. As a result, the Authority was not in compliance with the HQS as required by 24 CFR sections 982.158(d) and 982.405(b). Known Questioned Costs: $31,548 Cause: There is a significant deficiency in internal controls over compliance for the special tests and provisions type of compliance related to HQS enforcement due to high turnover. Effect: The Housing Voucher Cluster Programs are in material non-compliance with the special tests and provisions type of compliance related to HQS enforcement. Recommendation: We recommend that the Authority implement a process whereby Authority personnel are hired and trained on HQS enforcement that will reasonably assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority has recognized the deficiencies in the Housing Voucher Cluster Programs and has implemented a process to prevent the same issues from occurring. The Authority will also continue to train staff on HQS enforcement and enhance it's internal control procedures that will ensure compliance with federal regulations. Malcom Isler, HCV Program Director/Interim Deputy Executive Director is responsible for ensuring proper internal controls are in place to prevent significant deficiencies and material weaknesses from occurring and is expected to be completed by July 31, 2026.

View Audit 400937

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