Corrective Action Plans

Finding 1227385 (2025-010)

Material Weakness 2025

Community Action Partnership of Mercer County

PA

Subrecipient Monitoring Equipment & Real Property Management Procurement, Suspension & Debarment § 200.313

The organization will develop a policy on inventory acquisition, maintenance and disposal. Inventory will be conducted a prescribed by the funding source for Head Start it will be every two years in June of odd years, or when classrooms are relocated. Inventory will be reconciled with the last inven...

The organization will develop a policy on inventory acquisition, maintenance and disposal. Inventory will be conducted a prescribed by the funding source for Head Start it will be every two years in June of odd years, or when classrooms are relocated. Inventory will be reconciled with the last inventory taken. In addition, if prescribed by other funding sources the organization may do an annual inventory and reconcile it with the previous year as well. Disposal policies will include methods of disposition as required by the various funding sources. Responsible Individual: Chief Financial Officer - Scott Korba Estimated Completion Date: Fourth Quarter - ending Dec. 2026

View Audit 409469

Finding 1227380 (2025-005)

Material Weakness 2025

Community Action Partnership of Mercer County

PA

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

The regulation speaks to submitting quarterly reports within a given time frame. The regulation does not require formal evidence that the required reports were verified before submission. The organization is of the opinion that once complete the CFO reviews the report and verifies before submission....

The regulation speaks to submitting quarterly reports within a given time frame. The regulation does not require formal evidence that the required reports were verified before submission. The organization is of the opinion that once complete the CFO reviews the report and verifies before submission. The organization CEO may review be included in the review process. Responsible Individual: Chief Financial Officer- Scott Korba Estimated Completion Date: End of next quarter – September 2026

View Audit 409469

Finding 1227379 (2025-004)

Material Weakness 2025

Community Action Partnership of Mercer County

PA

Procurement, Suspension & Debarment Subrecipient Monitoring Eligibility

Under the state of Pennsylvania, contractors doing home repairs in excess of $5000 a year must register with the state of Pennsylvania and receive their Home Improvement Contractor Certification. Applications are reviewed by the Attorney General’s Office , anyone who is debarred is not issued and HI...

Under the state of Pennsylvania, contractors doing home repairs in excess of $5000 a year must register with the state of Pennsylvania and receive their Home Improvement Contractor Certification. Applications are reviewed by the Attorney General’s Office , anyone who is debarred is not issued and HIC Certification. In addition, the Program Director has a list of debarred contractors that he reviews periodically to ensure that contractors are not on the list. The organization will take the auditors recommendation of copying the debarred alphabetical page indicating that the contractor is not on the debarred or suspended listing and placing it in the contractors file. Responsible Individual: Energy Director Zack Porrecca and Housing Director Vickie Bucker Estimated Completion Date: September 30, 2026

View Audit 409469

Finding 1227305 (2025-003)

Material Weakness 2025

Nebraska Early Childhood Collaborative

NE

Cash Management Reporting Significant Deficiency § 200.303

U.S. Department of Health and Human Services Federal Financial Assistance Listing #93.600 Head Start Cluster Early Head Start Child Care Partnership Applicable Federal Award Number and Year – 07HP000640-01-00 and 07HP000640-02-00 9/1/2024 – 8/31/2025 and 9/1/2025 – 8/31/2026 Reporting Significant De...

U.S. Department of Health and Human Services Federal Financial Assistance Listing #93.600 Head Start Cluster Early Head Start Child Care Partnership Applicable Federal Award Number and Year – 07HP000640-01-00 and 07HP000640-02-00 9/1/2024 – 8/31/2025 and 9/1/2025 – 8/31/2026 Reporting Significant Deficiency in Internal Control Over Compliance Criteria: CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over federal awards that provides reasonable assurance that the Organization is managing the federal awards in compliance with federal statutes, regulations and terms and conditions of the federal award. Condition: The Organization was unable to provide adequate documentation of expenditures incurred to support the drawdown of federal awards claimed for reimbursement on an interim basis throughout the reporting period. Corrective Action Plan: At the time of the audit, the new CFO had reviewed its internal processes and has incorporated new procedures and controls over the tracking and submitting of drawdown requests for reimbursement of expenditures incurred under federal awards. All drawdown requests submitted are now reconciled and properly supported by internal records for expenditures incurred during the period being requested. Individual Responsible for Corrective Action: Milton Trabal, Chief Financial Officer Anticipated Completion Date: 2026

View Audit 409416

Finding 1227279 (2025-002)

Material Weakness 2025

Micronesian Legal Services Corporation

MP

Procurement, Suspension & Debarment Reporting Significant Deficiency

Corrective Action Taken - Secured a fidelity bond effective July 1, 2026 - Maintained documentation of all efforts to obtain replacement coverage during the period coverage was unavailable. - Continued reporting insurance procurement efforts to the Board of Directors. - Will continue to pursue broad...

Corrective Action Taken - Secured a fidelity bond effective July 1, 2026 - Maintained documentation of all efforts to obtain replacement coverage during the period coverage was unavailable. - Continued reporting insurance procurement efforts to the Board of Directors. - Will continue to pursue broader fidelity coverage as market conditions permit. - Will monitor renewal date to ensure timely renewal before expiration and prevent future lapses in coverage. Responsible Persons: Executive Director, Lee Pliscou Completion Date: July 1, 2026

View Audit 409386

Finding 1227275 (2025-003)

Material Weakness 2025

Improve Your Tomorrow

CA

Reporting Subrecipient Monitoring Significant Deficiency

Finding Reference Number: 2025-003 Description of Finding: IYT submitted its Audited Financial Statements and Single Audit Report to the Federal Audit Clearinghouse in August 2026, approximately five months after it was due. IYT was required to submit it no later than March 31, 2026; nine months aft...

Finding Reference Number: 2025-003 Description of Finding: IYT submitted its Audited Financial Statements and Single Audit Report to the Federal Audit Clearinghouse in August 2026, approximately five months after it was due. IYT was required to submit it no later than March 31, 2026; nine months after the June 30, 2025 fiscal year-end, in accordance with 2 CFR 200.512. Federal awarding agencies may deny future federal awards or subject IYT to additional cash monitoring requirements. Statement of Concurrence or Nonconcurrence: We concur with the audit finding. Corrective Action: This finding is a repeat of prior-year finding 2024-004. IYT's prior corrective action committed to on-time submission but did not establish the controls needed to make that commitment hold: it relied on the intent to submit on time rather than on a dated, back-scheduled calendar with an owner for each step and a checkpoint to catch slippage early. When the FY24-25 audit timeline slipped, there was no interim milestone to surface the delay while it could still be recovered, and the report was again submitted late. IYT acknowledges and accepts the responsibility for late submission. Meeting the FAC deadline is IYT's responsibility and remains so even where individual steps sit with the audit firm or with governance. IYT will establish a compliance calendar built by working backward from the Federal Audit Clearinghouse (FAC) statutory deadline, with defined interim milestones and an owner assigned to each by position: engagement of the audit firm and confirmation of fieldwork dates; completion of the year-end close; delivery of the prepared-by-client (PBC) list; fieldwork; draft report; management review; Finance Committee and Board review; and final FAC submission and certification. IYT's timeline depends on inputs from the audit firm (scheduling, fieldwork and reporting turnaround, and draft-review cycles) and from governance (Audit Committee and Board review windows). IYT manages these inputs to the deadline rather than treating them as outside its control: target dates are agreed with the auditors and committee chairs in advance and confirmed in writing, and if any party is at risk of missing a date, IYT escalates and adjusts immediately rather than absorbing the delay. Progress against every milestone is monitored by management and reported to the Audit Committee as a standing agenda item, so slippage is identified and escalated early rather than discovered near the deadline. Name of Contact Person: Macarena O'Brien, Chief Financial & Administrative Officer macarena@improveyourtomorrow.org | (480) 993-4764 Projected Completion Date: March 31, 2027

View Audit 409373

Finding 1227158 (2025-004)

Material Weakness 2025

Edison Arms Housing Development Fund Co., Inc.

NY

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Management concurs with the findings. Management is in the process of implementing formal procedures to strengthen oversight of HUD regulatory requirements, including the timely execution of replacement reserve deposits. These procedures will include clearly assigning responsibility, incorporating t...

Management concurs with the findings. Management is in the process of implementing formal procedures to strengthen oversight of HUD regulatory requirements, including the timely execution of replacement reserve deposits. These procedures will include clearly assigning responsibility, incorporating the requirement into a month-end compliance checklist, and documenting management review. Management expects these procedures to be implemented promptly and believes they will ensure compliance with HUD requirements going forward. Name of Responsible Person: Peyton Vang, Director of Finance Name of Contact: John Reilly Anticipated Completion Date: Corrective action was implemented effective July 2025

View Audit 409323

Finding 1227156 (2025-003)

Material Weakness 2025

Edison Arms Housing Development Fund Co., Inc.

NY

HUD Housing Programs Special Tests & Provisions Subrecipient Monitoring

Management concurs with the findings. Management is in the process of implementing formal procedures to strengthen oversight of HUD regulatory requirements, including the preparation, review, and timely execution of surplus cash calculations and related residual receipts deposits. These procedures w...

Management concurs with the findings. Management is in the process of implementing formal procedures to strengthen oversight of HUD regulatory requirements, including the preparation, review, and timely execution of surplus cash calculations and related residual receipts deposits. These procedures will include clearly assigning responsibility, incorporating the requirement into a year‑end compliance checklist, and documenting management review. Name of Responsible Person: Peyton Vang, Director of Finance Name of Contact: John Reilly Anticipated Completion Date: August 2026

View Audit 409323

Finding 1227154 (2025-002)

Material Weakness 2025

Edison Arms Housing Development Fund Co., Inc.

NY

Cash Management HUD Housing Programs Significant Deficiency

Response: Management concurs with the findings. Although the Organization does not currently use an interestbearing account for project funds, due to the ongoing operation of the program and continuous activity within the project funds account, any interest earned in such an account would be negligi...

Response: Management concurs with the findings. Although the Organization does not currently use an interestbearing account for project funds, due to the ongoing operation of the program and continuous activity within the project funds account, any interest earned in such an account would be negligible. Management is in the process of evaluating this recommendation to determine the appropriate course of action. Name of Responsible Person: Peyton Vang, Director of Finance Name of Contact: John Reilly Anticipated Completion Date: September 2026

View Audit 409323

Finding 1227151 (2025-002)

Material Weakness 2025

Beaumont Cherry Valley Water District

CA

Internal Control / Segregation of Duties Reporting Significant Deficiency § 200.303 § 200.328

The District concurs with the finding. Although the District's review process identified corrections, the process did not require a final verification that all reviewer comments had been incorporated into the version submitted. The District will take the following actions: 1. Require the preparer to...

The District concurs with the finding. Although the District's review process identified corrections, the process did not require a final verification that all reviewer comments had been incorporated into the version submitted. The District will take the following actions: 1. Require the preparer to reconcile reported expenditures to the general ledger, reimbursement requests or invoices, and relevant project records before submitting the report for review. The reconciliation will be retained with the report. 2. Use a version-controlled Quarterly Report Review Checklist and corrections log that identifies each reviewer comment, the required correction, the preparer's disposition, and the date completed. 3. Require the preparer to certify that all review comments have been resolved and incorporated into the final report. 4. Require the independent reviewer to perform and document a final comparison of the approved report to the reconciliation and corrections log. No report may be submitted until the reviewer has marked the final version 'Approved for Submission.' 5. Retain the signed checklist, reconciliation, corrections log, approved final report, and proof of submission. The Finance Manager will periodically review grant-reporting files to verify that the control is operating as designed. Person Responsible for Corrective Action: William Clayton, Finance Manager Anticipated Completion Date for Corrective Action: September 30, 2026. Final reviewer approval and document-retention controls will be effective immediately, with the revised checklist, written procedures, and staff training completed by this date.

View Audit 409318

Finding 1227150 (2025-001)

Material Weakness 2025

Beaumont Cherry Valley Water District

CA

Reporting Subrecipient Monitoring Significant Deficiency § 200.328

The District concurs with the finding. Following the 2024 Single Audit, the District assigned separate report preparation and review responsibilities and implemented a report review checklist. However, the procedures did not include a comprehensive mechanism for tracking recurring, final, and closeo...

The District concurs with the finding. Following the 2024 Single Audit, the District assigned separate report preparation and review responsibilities and implemented a report review checklist. However, the procedures did not include a comprehensive mechanism for tracking recurring, final, and closeout reports or a requirement to resolve uncertain reporting obligations sufficiently in advance of the deadline. The District will take the following actions: 1. Establish and maintain a Grant Reporting Requirements Matrix and calendar for each federal award and pass-through grant. The matrix will identify each recurring, final, and closeout report; the applicable grant provision; reporting period; due date; submission method; assigned preparer; assigned reviewer; and evidence of submission. 2. Set documented reminder dates in advance of each deadline and require the assigned preparer to confirm, for every reporting period, whether a report is required. Final and closeout reporting requirements will be reconfirmed before project completion. When a requirement is uncertain, the District will request written clarification from the grantor or passthrough entity as soon as the uncertainty is identified. Unless written confirmation is received that a report is not required, the District will prepare and submit the report. 3. Require the Finance Manager or designated supervisory reviewer to review the reporting calendar at least monthly while an award is active and to verify completion of each required submission. 4. Retain the completed review checklist, approved report, supporting documentation, correspondence concerning reporting requirements, and proof of timely submission in the grant file. 5. Incorporate these controls into written grant-reporting procedures and provide training to staff assigned to federal award administration. Person Responsible for Corrective Action: William Clayton, Finance Manager Anticipated Completion Date for Corrective Action: September 30, 2026. The reporting matrix, advance reminders, and supervisory monitoring will be used immediately for all open federal and pass-through awards, with written procedures and staff training completed by this date.

View Audit 409318

Finding 1227107 (2025-008)

Material Weakness 2025

City of Manchester, Nh

NH

Special Tests & Provisions HUD Housing Programs Significant Deficiency § 200.303

2025-008 Community Development Block Grants/Entitlement Grants - Assistance Listing Number 14.218 Recommendation: We recommend the City strengthen procedures and internal controls to ensure that environmental review certifications are prepared and retained, evidencing that the environmental reviews ...

2025-008 Community Development Block Grants/Entitlement Grants - Assistance Listing Number 14.218 Recommendation: We recommend the City strengthen procedures and internal controls to ensure that environmental review certifications are prepared and retained, evidencing that the environmental reviews were completed. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding:  CIP will update the Environmental Review section of the CIP Procedures Manual to ensure Environmental Reviews are completed and documentation is kept on file. Additionally a SOP will also be created for how to conduct an Environmental Review. Name(s) of the contact person(s) responsible for corrective action:  Chelcie Pinsonneault, Community Grants Manager Planned completion date for corrective action plan:  Planning and Community Development will ensure the implementation of this corrective action plan is completed by October 31, 2026

View Audit 409307

Finding 1227106 (2025-007)

Material Weakness 2025

City of Manchester, Nh

NH

Reporting Procurement, Suspension & Debarment Subrecipient Monitoring § 200.303

2025-007 Community Development Block Grants/Entitlement Grants - Assistance Listing Number 14.218 Recommendation: We recommend the City strengthen procedures and internal controls to ensure that all required subawards are reported timely and accurately no later than the end of the month following th...

2025-007 Community Development Block Grants/Entitlement Grants - Assistance Listing Number 14.218 Recommendation: We recommend the City strengthen procedures and internal controls to ensure that all required subawards are reported timely and accurately no later than the end of the month following the month of issuance of each subaward. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding:  Planning and Community Development’s Community Improvement Program (CIP) will update the CIP Procedures Manual to ensure that FFATA reporting is identified as a required step when providing subawards. Additionally, a Standard Operating Procedure (SOP) will be created on how, when and why to complete FFATA reporting, who will be responsible, and how we will ensure the required reporting is completed. Name(s) of the contact person(s) responsible for corrective action:  Chelcie Pinsonneault, Community Grants Manager Planned completion date for corrective action plan:  Planning and Community Development will ensure the implementation of this corrective action plan is completed by October 31, 2026.

View Audit 409307

Finding 1227089 (2025-002)

Material Weakness 2025

Le Mars Community School District

IA

School Nutrition Programs Cash Management Eligibility

Significant Deficiency in Internal Control over Compliance and Instance of Noncompliance: Meal Count Reporting and Reconciliation U.S Department of Agriculture Child Nutrition Cluster Passed through State of lowa Department of Education Federal Assistance Listing Number: 10.555, 10.559, 10.553 Feder...

Significant Deficiency in Internal Control over Compliance and Instance of Noncompliance: Meal Count Reporting and Reconciliation U.S Department of Agriculture Child Nutrition Cluster Passed through State of lowa Department of Education Federal Assistance Listing Number: 10.555, 10.559, 10.553 Federal Award Year: 2025Criteria: Districts are required are required to submit accurate claims for reimbursement and maintain records supporting the number of meals claimed for reimbursement for the National School Lunch Program. Condition: During audit procedures over the School Nutrition Cluster, we identified multiple instances in the National School Lunch Program in which the number of claims submitted was incorrect. Cause: The District did not have an effective review and reconciliation control in place to compare meal-count support to the claim summary reports before reimbursement claims were submitted. In addition, meal-count and eligibility reports were not consistently generated and retained at the time the claims were prepared. As a result, subsequent changes in student eligibility status may have affected the reports available to support the meal counts claimed during the applicable reporting periods. Effect: Meal counts reported for reimbursement were not fully supported by contemporaneous records, resulting in noncompliance with reporting and recordkeeping requirements. Without an effective review and reconciliation control, errors in meal counts or claim summary reports may not be identified before reimbursement claims are submitted, increasing the risk that federal reimbursement claims could be inaccurate. Questioned Costs: Known questioned costs identified were below the reporting threshold and are not reported in this finding. Recommendation: We recommend that the District implement a documented monthly review and reconciliation process before reimbursement claims are submitted. The reconciliation should compare meal-count and eligibility support to the claim summary reports, identify and explain any differences, retain support for adjustments, and include evidence of review and approval by an individual independent of claim preparation. We also recommend that management generate and retain meal-count and eligibility report for each applicable reporting period at the time claims are prepared to ensure support reflects student eligibility status as of the applicable claim period. Management Response: Management acknowledges the finding and the District will generate and retain monthly meal-count and eligibility reports at the time reimbursement claims are prepared. The District will also implement a documented review and reconciliation process for National School Lunch Program reimbursement claims.

View Audit 409272

Finding 1227028 (2025-003)

Material Weakness 2025

Alamo Area Mutual Housing Association

TX

Questioned Costs Allowable Costs / Cost Principles Significant Deficiency

CORRECTIVE ACTION PLAN Name and Number of the Project: Alamo Area Mutual Housing Association, Inc. Audit Firm: M Group, LLP Audit Period: The year ended December 31, 2025 Compliance Review A. COMMENTS ON FINDINGS AND RECOMMENDATIONS We concur with the findings and recommendations of our auditors reg...

CORRECTIVE ACTION PLAN Name and Number of the Project: Alamo Area Mutual Housing Association, Inc. Audit Firm: M Group, LLP Audit Period: The year ended December 31, 2025 Compliance Review A. COMMENTS ON FINDINGS AND RECOMMENDATIONS We concur with the findings and recommendations of our auditors regarding our noncompliance as cited in the accompanying Schedule of Findings and Questioned Costs. ACTIONS TAKEN FINDING 2025-003: The Company does not have effective internal controls or consistently follow the written policies and procedures over federal awards. CORRECTIVE ACTION: Effective January 1, 2026, Prospera has control over ACG and plans to improve the internal control procedures and monitor the federal awards.

View Audit 409179

Finding 1226975 (2025-004)

Material Weakness 2025

Winner Regional Healthcare Center

SD

Special Tests & Provisions Questioned Costs Significant Deficiency

Federal Agency Name: United States Department of Agriculture Program Name: Community Facilities Loans and Grants FFAL #10.766 Finding Summary: For eight of the twelve months, the Center did not document an independent review of the monthly reserve fund account balance as compared to the required min...

Federal Agency Name: United States Department of Agriculture Program Name: Community Facilities Loans and Grants FFAL #10.766 Finding Summary: For eight of the twelve months, the Center did not document an independent review of the monthly reserve fund account balance as compared to the required minimum balance. Corrective Action Plan: Effective September 2025, the balance of the reserve account, minimum required reserve balance and compliance of the reserve was presented to the board with formal documentation of review and approval being retained. Responsible Individuals: Mari Chambers, Chief Finance Officer Anticipated Completion Date: October 2025

View Audit 409157

Finding 1226974 (2025-005)

Material Weakness 2025

Operation Hope of Fairfield, Inc.

CT

Questioned Costs Subrecipient Monitoring Eligibility

Management has updated the policies and procedures manual to address this finding. For each housing unit, we are using the Department of Housing and Urban Development (HUB) rent reasonableness form at lease signing. This form will be updated annually for each unit. We will also be following the HUD ...

Management has updated the policies and procedures manual to address this finding. For each housing unit, we are using the Department of Housing and Urban Development (HUB) rent reasonableness form at lease signing. This form will be updated annually for each unit. We will also be following the HUD fair market rent determinations.

View Audit 409146

Finding 1226938 (2025-251)

Material Weakness 2025

Congregation Rachmistrivka Inc.

NJ

Significant Deficiency

Congregation Rachmistrivka, Inc. respectfully submits the following corrective action plans for the year ended August 31, 2025. Finding 25-1: The audit report was due to be received by the State of New Jersey no later than May 31, 2026. As a result, the audit was not submitted timely. Recommendation...

Congregation Rachmistrivka, Inc. respectfully submits the following corrective action plans for the year ended August 31, 2025. Finding 25-1: The audit report was due to be received by the State of New Jersey no later than May 31, 2026. As a result, the audit was not submitted timely. Recommendation: The School should alert the auditor about new funding received during the year to give ample time to research and prepare. Action Taken: The administrator will monitor the School’s funding that they receive throughout the year and will alert the auditor as soon as they receive funding from a new program. As such, the required corrective actions have been implemented. Implementation Date: Corrective Action Plan has been implemented as of June 11, 2026. Person Responsible for Implementation: Simon Balsam, the Administrator, is the responsible party for implementation of the CAP. Telephone Number: (732) 942-4582.

View Audit 409132

Finding 1226482 (2025-007)

Material Weakness 2025

Reach Community Development, Inc.

OR

Questioned Costs Special Tests & Provisions HUD Housing Programs

REACH has policies in place for annual unit inspections. Management created a new unit inspection form to capture inspection, work orders, and re-inspection in 2025. Portfolio Managers reviewed these new forms with site teams and provided training on how to complete these forms. Property management ...

REACH has policies in place for annual unit inspections. Management created a new unit inspection form to capture inspection, work orders, and re-inspection in 2025. Portfolio Managers reviewed these new forms with site teams and provided training on how to complete these forms. Property management team also sent emails and Teams reminders to the site team to ensure unit inspection, work orders, and re-inspections are completed on time and properly. During the second quarter of 2026, REACH outsourced both property management and compliance functions to a third-party management company to address outstanding compliance issues.

View Audit 409109

Finding 1226481 (2025-006)

Material Weakness 2025

Reach Community Development, Inc.

OR

Eligibility Questioned Costs HUD Housing Programs

REACH has policies in place to ensure recertifications and income verification are performed timely, tenant eligibility is correctly determined, and the tenant files are properly maintained. During the second quarter of 2026, REACH outsourced property management and compliance functions to a third-p...

REACH has policies in place to ensure recertifications and income verification are performed timely, tenant eligibility is correctly determined, and the tenant files are properly maintained. During the second quarter of 2026, REACH outsourced property management and compliance functions to a third-party management company to address the outstanding compliance issues.

View Audit 409109

Finding 1226480 (2025-001)

Material Weakness 2025

Reach Community Development, Inc.

OR

Eligibility Questioned Costs Significant Deficiency

REACH’s 2024 consolidated audit report was issued in mid-November 2025. REACH Compliance Management reviewed the Oregon Housing and Community Services (OHCS) Housing Trust Fund (HTF) program manual and did not find any specific requirements about certifications other than at move-in. REACH reached o...

REACH’s 2024 consolidated audit report was issued in mid-November 2025. REACH Compliance Management reviewed the Oregon Housing and Community Services (OHCS) Housing Trust Fund (HTF) program manual and did not find any specific requirements about certifications other than at move-in. REACH reached out to OHCS and did not receive any clarifications. REACH operated with the available guidance for HTF at the time. OHCS have since updated the HTF manual as of June 2026. REACH now have an updated HTF manual which outlines when full recertification with income verifications are required and will follow those rules going forward.

View Audit 409109

Finding 1226478 (2025-004)

Material Weakness 2025

Reach Community Development, Inc.

OR

Eligibility Questioned Costs HUD Housing Programs

Once REACH was notified about this audit finding, Property Management established a new review process to review the HOME units that would be re-classified the next time there is a vacant unit of the corresponding size/type. This is a “next available unit” rule. It will be addressed when the existin...

Once REACH was notified about this audit finding, Property Management established a new review process to review the HOME units that would be re-classified the next time there is a vacant unit of the corresponding size/type. This is a “next available unit” rule. It will be addressed when the existing resident moves out. Our third-party Property Management company will continue to monitor this finding.

View Audit 409109

Finding 1226477 (2025-003)

Material Weakness 2025

Reach Community Development, Inc.

OR

Eligibility Questioned Costs HUD Housing Programs

REACH’s 2024 consolidated audit report was issued in mid-November 2025. Once we were notified about this audit finding, Compliance Management conducted an in-depth review of this finding and determined that one extra 3-bedroom and one fewer 4-bedroom at Covington Commons were incorrectly set up in o...

REACH’s 2024 consolidated audit report was issued in mid-November 2025. Once we were notified about this audit finding, Compliance Management conducted an in-depth review of this finding and determined that one extra 3-bedroom and one fewer 4-bedroom at Covington Commons were incorrectly set up in our Yardi system. REACH have since corrected this issue in the Yardi system. REACH will continue to monitor vacant two-bedrooms at Cascadia Village as they become available. There are only two 2-bedrooms that are not designated as HOME. We noted that unit #72 was not set up properly in our Yardi system. REACH have corrected this issue in the system.

View Audit 409109

Finding 1226476 (2025-002)

Material Weakness 2025

Reach Community Development, Inc.

OR

Eligibility Questioned Costs HUD Housing Programs

REACH’s 2024 consolidated audit report was issued in mid-November 2025. REACH has policies and procedures in place to monitor compliance of recertifications, and correct income verification procedures are performed timely. Once we were notified of this finding, Compliance Management Compliance team ...

REACH’s 2024 consolidated audit report was issued in mid-November 2025. REACH has policies and procedures in place to monitor compliance of recertifications, and correct income verification procedures are performed timely. Once we were notified of this finding, Compliance Management Compliance team conducted a full review of all HOME regulatory agreements in the portfolio, including County, City and Commerce HOME funding. Compliance Management also created a spreadsheet to track which units are due for the appropriate HOME recertification.

View Audit 409109

Finding 1226446 (2025-004)

Material Weakness 2025

Phoenix Indian Center

AZ

Reporting Significant Deficiency Internal Control / Segregation of Duties § 200.512

At the start of each fiscal year, the Finance Director will prepare a submission timeline working backward from the March 31 FAC deadline, establishing interim milestones for year-end close, draft financial statement preparation, management review, and auditor fieldwork. Progress against the submiss...

At the start of each fiscal year, the Finance Director will prepare a submission timeline working backward from the March 31 FAC deadline, establishing interim milestones for year-end close, draft financial statement preparation, management review, and auditor fieldwork. Progress against the submission timeline will be monitored by the CEO and reported to the Board of Directors on a quarterly basis. Management will engage its external auditors earlier in the process and ensure adequate finance staffing is maintained prior to the fiscal yearend close.

View Audit 409082

Corrective Action Plans

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