Corrective Action Plans

Finding 1168542 (2025-001)

Material Weakness 2025

CA

Subrecipient Monitoring Special Tests & Provisions Eligibility

For all future stipend payments, the Alternative Payment Program Supervisor will review and confirm that all appropriate documentation is submitted along with the request for payment. This documentation will be reviewed by the Early Care and Education Senior Accounting Technician for accuracy and co...

For all future stipend payments, the Alternative Payment Program Supervisor will review and confirm that all appropriate documentation is submitted along with the request for payment. This documentation will be reviewed by the Early Care and Education Senior Accounting Technician for accuracy and completeness before approving the stipend payment. Stipend payments will not be approved for payment until all appropriate documentation has been received and reviewed by the Early Care and Education Financial Services Manager.

View Audit 380403

Finding 1168371 (2025-007)

Material Weakness 2025

Los Barrios Unidos Community Clinic, Inc.

TX

Cash Management Allowable Costs / Cost Principles Significant Deficiency § 200.302

Significant Deficiency Item 2025-007 - Cash Management - U.S. Department of Health and Human Services, Health Center Program Cluster (Assistance Listing Number 93.224/93.527) Notice of Award Number 6 H80CS00505-23-04, 6 H2ECS45602-02-04, 1 H8LCS50772-01-00 and 6 HBHCS46163-03-01 During our audit, we...

Significant Deficiency Item 2025-007 - Cash Management - U.S. Department of Health and Human Services, Health Center Program Cluster (Assistance Listing Number 93.224/93.527) Notice of Award Number 6 H80CS00505-23-04, 6 H2ECS45602-02-04, 1 H8LCS50772-01-00 and 6 HBHCS46163-03-01 During our audit, we noted that there is no evidence of review and approval of drawdowns from the Health Center Program Cluster and the supporting records. Recommendation: We recommend that LBUCC implement a policy that requires all drawdowns and supporting documents to be reviewed and that such review and approval be documented. Action Taken: LBUCC revised the drawdown policy which now includes a review and approval from the CFO and the process is documented. Effectivity Date: Implemented 12/3/2025.

View Audit 380161

Finding 1168368 (2025-006)

Material Weakness 2025

Los Barrios Unidos Community Clinic, Inc.

TX

Special Tests & Provisions Questioned Costs Subrecipient Monitoring § 200.303

Significant Deficiency Item 2025-006 - Special Tests and Provisions - U.S. Department of Health and Human Services, Health Center Program Cluster (Assistance Listing Number 93.224/93.527) Notice of Award Number 6 HB0CS00505-23-04, 6 H2ECS45602-02-04, 1 HBLCS50772-01-00 and 6 HBHCS46163-03-01 During ...

Significant Deficiency Item 2025-006 - Special Tests and Provisions - U.S. Department of Health and Human Services, Health Center Program Cluster (Assistance Listing Number 93.224/93.527) Notice of Award Number 6 HB0CS00505-23-04, 6 H2ECS45602-02-04, 1 HBLCS50772-01-00 and 6 HBHCS46163-03-01 During our audit, we noted that LBUCC conducted quarterly internal audit reviews of fifty (50) samples self-pay patients to review for sliding fee discount determination. However, we noted that the findings or exceptions identified in the quarterly internal audit review remained uncorrected. Recommendation: We recommend that LBUCC establish a process for communicating, investigating and correcting all internal audit findings or exceptions on a timely manner. Additionally, we recommend that management identify the potential cause of such findings or exceptions and that necessary corrective actions be taken to address such cause. For example, LBUCC may conduct periodic training of all employees involved in the patient intake and screening process. Action Taken: The internal audit process has been redesigned and expanded to include weekly reviews and all exceptions/errors will be corrected and the cause determined. Additional training will be provided with the expectation that the exceptions/errors will reduce going forward. Effectivity Date: This will be fully implemented by 1/31/2026

View Audit 380161

Finding 1168334 (2025-002)

Material Weakness 2025

Phoenix Houses of Texas, Inc.

TX

Reporting Subrecipient Monitoring Cash Management

Finding #2025-002 – Significant Deficiency and Other Noncompliance – Reporting. Applicable federal program: U. S. Department of Health and Human Services, Assistance Listing #93.959, Passed through Texas Health and Human Services Commission, All contracts, Contract years: 09/01/23 – 08/31/24 and 09/...

Finding #2025-002 – Significant Deficiency and Other Noncompliance – Reporting. Applicable federal program: U. S. Department of Health and Human Services, Assistance Listing #93.959, Passed through Texas Health and Human Services Commission, All contracts, Contract years: 09/01/23 – 08/31/24 and 09/01/24 – 08/31/25. Condition and context: In our testing of a sample of monthly billings and quarterly reports from throughout the fiscal year, we noted that reports were not being submitted within the required timelines for several reporting periods. Management communicated their delays to Texas Health and Human Services Commission (THHS), and their plan to rectify the delays. Phoenix Houses of Texas were able to file all delayed quarterly reports and monthly billings prior to June 30, 2025. THHS has approved all the delayed monthly billings and quarterly reports. Recommendation: Re-emphasize internal controls over timely grant billing and reporting to comply with grant contracts. Planned corrective action: All outstanding billings were subsequently submitted and billings are now current and submitted in accordance with required timelines. Corrective actions implemented include updates to Finance Department policies and procedures to formalize month-end closing and billing timelines and to strengthen oversight and monitoring controls. These changes ensure that billing and reporting are performed on a timely and ongoing basis. Responsible officer: Drew Dutton, CEO and Anunoy Mou, Finance Director. Estimated completion date: Completed September 2025.

View Audit 380132

Finding 1168323 (2025-001)

Material Weakness 2025

Navarro College District

TX

Internal Control / Segregation of Duties Special Tests & Provisions Questioned Costs

Corrective Action Plan 1. Implement Automated Notifications (New and Long-Term Solutions) The institution will establish a two-phase approach to ensure timely and compliant Title IV disbursement notifications. New Process: A weekly report will be generated for Title IV loan disbursements with the co...

Corrective Action Plan 1. Implement Automated Notifications (New and Long-Term Solutions) The institution will establish a two-phase approach to ensure timely and compliant Title IV disbursement notifications. New Process: A weekly report will be generated for Title IV loan disbursements with the corresponding notifications sent to students. Financial aid staff will review the report to confirm that each required notification was issued within the regulatory timeframe. Any missing notifications will be immediately sent and documented. This interim process will remain in effect until full automation is implemented. Long-Term Automated Solution: The student information system will be configured to automatically generate and send Title IV disbursement notifications to students. Each notification will be sent no earlier than 30 days before, and no later than 30 days after, the crediting of Title IV loan funds to the student’s ledger account, as required by 34 CFR §668.165(a)(2). The system will also store a timestamped record of each notification in the student’s electronic file for audit and compliance verification. 2. Develop Written Procedures A formal institutional policy and procedural guide will be developed to define the timing, content, and method of Title IV disbursement notifications. This documentation will explicitly address regulatory requirements under 34 CFR §668.165(a) and outline staff responsibilities for monitoring and documentation. 3. Staff Training Financial Aid staff will receive training on the new automated notification process, including policy updates, system functionality, and documentation requirements. Completion of training will be tracked to ensure all relevant personnel are fully informed and able to implement the new procedures consistently. 4. Periodic Compliance Reviews Quarterly internal audits will be conducted to confirm that required notifications are being issued as scheduled and properly documented in each student’s record. Any discrepancies identified will result in immediate corrective measures and additional staff coaching as needed. Responsible Party Director of Financial Aid Timeline for Completion - New System Implementation: Immediate - Long-Term Solution: Work with software provider and IT for options to implement this process - Policy Documentation & Staff Training: Within 90 days - First Compliance Review: Within 90 days

View Audit 380118

Finding 1168306 (2025-001)

Material Weakness 2025

Lake County School District #7

OR

Questioned Costs Cash Management Reporting § 200.302 § 200.328

2025-001 Reporting US Department of Education – AL #s10.553, 10.555, 10.559 and 10.582 Child Nutrition Cluster Condition: The District submitted monthly child nutrition reimbursement claims that contained inaccurate meal counts for multiple months during the fiscal year. Specifically, the District o...

2025-001 Reporting US Department of Education – AL #s10.553, 10.555, 10.559 and 10.582 Child Nutrition Cluster Condition: The District submitted monthly child nutrition reimbursement claims that contained inaccurate meal counts for multiple months during the fiscal year. Specifically, the District overstated reimbursable meal counts due to errors in including non-reimbursable meals served. Additionally, the claims were not subject to an independent review prior to submission to ensure accuracy and completeness. Name of Contact Person: Ann Berman, Business Manager Plan of Action: The District will revisit the internal control processes surrounding the grant reporting and reimbursement process to ensure meal count information submitted is within program requirements of Child Nutrition Cluster programs. In the event there are questions surrounding meal count and other information subject to reporting, the District will continue to rely on timely guidance from external governmental accounting consultants, the Oregon Department of Revenue, and the Oregon Department of Education.

View Audit 380053

Finding 1168300 (2025-001)

Material Weakness 2025

Interfaith Ministries for Greater Houston

TX

Procurement, Suspension & Debarment HUD Housing Programs Significant Deficiency

Finding #2025-001 – Significant Deficiency and Other Noncompliance. Applicable federal programs: U. S. Department of Housing and Urban Development, Assistance Listing #14.218, Passed through Harris County, Community Development Block Grants/Entitlement Grants – CDBG – Entitlement/Special Purpose Gra...

Finding #2025-001 – Significant Deficiency and Other Noncompliance. Applicable federal programs: U. S. Department of Housing and Urban Development, Assistance Listing #14.218, Passed through Harris County, Community Development Block Grants/Entitlement Grants – CDBG – Entitlement/Special Purpose Grants Cluster, Contract #’s: C2023-006G, C2024-006H, and C2020-050G, Contract years: 10/23-09/24, 10/24-09/25, and 03/24-09/24. Assistance Listing #14.218, Passed through City of Houston, Community Development Block Grants/Entitlement Grants – CDBG – Entitlement/Special Purpose Grants Cluster, Contract #: 4600016648, Contract year: 05/25-06/25. U. S. Department of Health and Human Services, Assistance Listing #93.576, Passed through Episcopal Migration Ministries, Refugee and Entrant Assistance Discretionary Grants, Contract #’s: 90RP0117‐01-00, 90RP0117-02-00, 90RP0117-03-00, and 90RP0117-04-00, Contract years: 10/23-09/24 and 10/24-09/25. Applicable state program: Texas Department of Agriculture, Home-Delivered Meal Grant Program, Contract #’s: HDM2024029-070-071 and HDM2025052-053, Contract years: 02/24-01/25 and 02/25-01/26. Condition and context: During our testing of 24 expenditures requiring procurement, we identified one instance of expenditures in Home-Delivered Meal Grant Program greater than the simplified acquisition threshold of $10,000 where simplified acquisition procedures in accordance with Interfaith Ministries’ policy were not followed. Recommendation: Emphasize adherence to established policies and procedures to ensure procurement is performed according to the procurement policy, and that proper procurement documentation is maintained. Planned corrective action: Our organization implemented a robust procurement policy effective July 1, 2018 that complies with the guidelines of 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Subpart D – Post Federal Award Requirements, Procurement Standards 200.317-326 and the Texas Grants Management Standards. Under the established procurement method for small purchases between $10,000 and $100,000, Interfaith Ministries is required to obtain price or rate quotations from a minimum of three sources. The management team will re-emphasize the established policy and procedures for procurement with Interfaith Ministries staff. Responsible officer: Sheroo Mukhtiar, Chief Executive Officer and Stephanie Alvarez, Chief Financial Officer. Estimated completion date: December 1, 2025

View Audit 380050

Finding 1168299 (2025-002)

Material Weakness 2025

Interfaith Ministries for Greater Houston

TX

Allowable Costs / Cost Principles HUD Housing Programs Significant Deficiency

Finding #2025-002 – Significant Deficiency and Other Noncompliance. Applicable federal program: U. S. Department of Health and Human Services, Assistance Listing #93.566, Passed through Texas Office for Refugees, Refugee and Entrant Assistance State/Replacement Designee Administered Programs, Contra...

Finding #2025-002 – Significant Deficiency and Other Noncompliance. Applicable federal program: U. S. Department of Health and Human Services, Assistance Listing #93.566, Passed through Texas Office for Refugees, Refugee and Entrant Assistance State/Replacement Designee Administered Programs, Contract #’s: FFY2024-27947V-CMA and FFY2025-27947V-CMA, Contract years: 10/23-09/24 and 10/24-09/25. Condition and context: Interfaith Ministries’ policies and procedures for verifying the completeness of documentation includes ensuring the acknowledgement of receipt of a debit card by the client is maintained in the client file. In a sample of 33 client files tested for refugee cash assistance program, we noted one client who received a debit card in February 2025 did not have the acknowledgement receipt in the client file. Recommendation: Emphasize adherence to established policies and procedures to ensure acknowledgement of receipt of a debit card by the client is maintained in the client file. Planned corrective action: With the implementation of the Refugee Cash Assistance (RCA) Debit Card program by TXOR, our organization established the policy that client case files must contain a copy of the Debit Card Activation Page with the client’s signature and the date the card was delivered to the client as required by TXOR. Our program team will re-emphasize these policies through additional staff training to ensure compliance with the established policy and procedures for the RCA Debit Card program. Additionally, our compliance department will establish procedures to perform periodic reviews to ensure that the client files are complete. Responsible officer: Ali Al Sudani, Chief Program Officer and Terry Merriett, VP of Quality Assurance & Compliance. Estimated completion date: December 1, 2025.

View Audit 380050

Finding 1168293 (2025-004)

Material Weakness 2025

Catholic Charities of Los Angeles, Inc.

CA

Questioned Costs Subrecipient Monitoring Reporting

This was the result of being understaffed during this period. Priorities were determined and unfortunately these reports were delayed. Sufficient staff have been hired since this occurred and I don't see this as a problem going forward.

View Audit 380037

Finding 1168284 (2025-003)

Material Weakness 2025

Catholic Charities of Los Angeles, Inc.

CA

Questioned Costs Subrecipient Monitoring Reporting

This was the result of being understaffed during this period. Priorities were determined and unfortunately these reports were delayed. Sufficient staff have been hired since this occurred and I don't see this as a problem going forward.

View Audit 380037

Finding 1168282 (2025-002)

Material Weakness 2025

Catholic Charities of Los Angeles, Inc.

CA

Questioned Costs Subrecipient Monitoring Reporting

This was the result of being understaffed during this period. Priorities were determined and unfortunately these reports were delayed. Sufficient staff have been hired since this occurred and I don't see this as a problem going forward.

View Audit 380037

Finding 1168275 (2025-001)

Material Weakness 2025

Catholic Charities of Los Angeles, Inc.

CA

Questioned Costs Subrecipient Monitoring Reporting

This was the result of being understaffed during this period. Priorities were determined and unfortunately these reports were delayed. Sufficient staff have been hired since this occurred and I don't see this as a problem going forward.

View Audit 380037

Finding 1168214 (2025-001)

Material Weakness 2025

Nevada R-V School District

MO

Questioned Costs Subrecipient Monitoring Eligibility

The District is correcting the eligibility status of student participants and is providing training to those that determine the eligibility status to ensure proper eligibility determination in the future.

View Audit 380012

Finding 1168189 (2025-003)

Material Weakness 2025

Yadkin County

NC

Eligibility Internal Control / Segregation of Duties Questioned Costs

Corrective Action Plan For the Year Ended June 30, 2025 Finding: 2025-003 Name of contact person: Corrective Action: Proposed Completion Date: Corrective actions for Finding 2025-003 also applies to State award findings. Section IV - State Award Findings and Questioned Costs Section III - Federal Aw...

Corrective Action Plan For the Year Ended June 30, 2025 Finding: 2025-003 Name of contact person: Corrective Action: Proposed Completion Date: Corrective actions for Finding 2025-003 also applies to State award findings. Section IV - State Award Findings and Questioned Costs Section III - Federal Award Findings and Questioned Costs Jessica Wall, Human Services Director and Marcy Mays, Assistant Human Services Director Training to include technical assistance related to all Single County Audit Findings from the most recent audit. This training included a powerpoint presentation that covered income calculations, resources, self-employment and how to document each of these. During this training, we covered toggling into each determination to check for validity and made it a requirement that each caseworker calculate income outside of the system, upload their own calcuations into NCFast and verify that the outside calculation matches that in the system. Operational Support Representative visited the agency to provide training on self-employment, unemployment, passalong, SSI cases and passalong. Internally, we have developed second-party spreadsheets per worker to be able to better track individual performance and training needs. Internal Training completed on 09/17/25. Operational Support Training was provided on 10/22/25. Supervisors will provide at least monthly training on any new policy updates or second-party findings. 131

View Audit 379967

Finding 1168174 (2025-002)

Material Weakness 2025

City of Utica

MI

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

2025-002 – Significant Deficiency and Noncompliance – Federal Policies Corrective Action Plan: The City will develop and adopt a comprehensive Uniform Guidance compliance manual that addresses procurement, allowable costs, cash management, subrecipient monitoring, and internal controls. A Federal Co...

2025-002 – Significant Deficiency and Noncompliance – Federal Policies Corrective Action Plan: The City will develop and adopt a comprehensive Uniform Guidance compliance manual that addresses procurement, allowable costs, cash management, subrecipient monitoring, and internal controls. A Federal Compliance Officer will be designated to oversee policy implementation and annual updates. Standard operating procedures will be issued for relevant departments, and mandatory staff training will be conducted. These actions will be completed by March 31, 2026, with ongoing monitoring through quarterly compliance meetings. Anticipated Completion Date: March 31, 2026

View Audit 379957

Finding 1168156 (2025-001)

Material Weakness 2025

School of Excellence in Education

TX

Allowable Costs / Cost Principles School Nutrition Programs Significant Deficiency

No. 2025-001 Subject: Allowable Costs and Activities ‐ Significant deficiency in internal control over compliance and compliance finding. Name of Contact Person: Byron Jones, CFO Phone Number: (480) 270-5438 Anticipated Completion Date: June 30, 2026 Corrective Action: We will strengthen internal co...

No. 2025-001 Subject: Allowable Costs and Activities ‐ Significant deficiency in internal control over compliance and compliance finding. Name of Contact Person: Byron Jones, CFO Phone Number: (480) 270-5438 Anticipated Completion Date: June 30, 2026 Corrective Action: We will strengthen internal controls over employee time coding by implementing enhanced review procedures to ensure only allowable Child Nutrition activities are charged to the grant. Supervisors and the accounting team will review all payroll coding charged to the Child Nutrition Cluster to verify that the employee’s position and duties align with approved grant activities. These improved internal procedures will provide proper compliance over allowable costs. We will also conduct an annual audit of all grant-funded employee positions at the start of each school year, reviewed by the grants team, HR, and accounting, to verify the accuracy of all employee costing allocations to federal grants and to ensure any miscoding errors are identified and corrected in a timely manner.

View Audit 379914

Finding 1168098 (2025-001)

Material Weakness 2025

Atlantic University College, Inc.

PR

Student Financial Aid Subrecipient Monitoring Questioned Costs

The institution has implemented a new unofficial withdrawals (UW) policy. This policy defines an unofficial withdrawal as a student who stops attending one or more courses without officially withdrawing. An unofficial withdrawal will be assigned to any student who has consecutively ceased attending ...

The institution has implemented a new unofficial withdrawals (UW) policy. This policy defines an unofficial withdrawal as a student who stops attending one or more courses without officially withdrawing. An unofficial withdrawal will be assigned to any student who has consecutively ceased attending a course for three weeks and for whom no evidence of attendance is available at the time of reporting within the specified period. If a student stops attending all their courses, Registrar's Office will inactivate the student and issue a report to the Financial Aid office for an R2T4 calculation. This process will occur on the last instructional day before the final exams, as outlined in the academic calendar. According to the policy, Faculty members submit a report of students who have stopped attending (using an official form) and indicate the last date of academic activity for each student reported as UW. These students are not assigned a grade but rather a "UW." Students who complete the course by continuing to attend but fail to meet the academic requirements receive a grade of "F." In addition, effective March 2025, the Academic Deanship has established an institutional policy for submitting grade records (roll books) at the end of each academic term. Since 2024, some faculty members have participated in a pilot project to adopt the Electronic Gradebook (Rollbook). After adjusting the system, the institution will offer training sessions to all faculty members. By the end of the February-May 2025 term,faculty will submit the required documentation to maintain records of the grades assigned to each student.

View Audit 379835

Finding 1167997 (2025-001)

Material Weakness 2025

Austin Community College District

TX

Questioned Costs Student Financial Aid Reporting

U.S. Department of Education 2025-001 Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend Austin Community College District re-evaluate their procedures and review policies surrounding reporting status changes to NSLDS to ensure timely and accurate repo...

U.S. Department of Education 2025-001 Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend Austin Community College District re-evaluate their procedures and review policies surrounding reporting status changes to NSLDS to ensure timely and accurate reporting. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: ACC submitted all student graduates’ status changes to the National Student Clearinghouse (NSC) accurately and in a timely manner, however a number of individual records in the transmitted files were not further reported by NSC to NSLDS in a timely manner. ACC is developing internal controls that include follow-up review of all reported records sent from NSC to the NSLDS system, to ensure 100% accurate and timely reporting. The Enrollment and Records Specialist will review and certify all files and submissions, with a second audit verification of records’ status and timely reporting conducted by the Director of Compliance and Operations. Name(s) of the contact person(s) responsible for corrective action: Annisha Morgan, Director of Enrollment and Records Compliance and Operations Planned completion date for corrective action plan: December 19, 2025. If the Department of Education has questions regarding this plan, please call Linda Terry at 512-223-7503.

View Audit 379687

Finding 1167958 (2025-002)

Material Weakness 2025

Columbia Village

MN

Questioned Costs HUD Housing Programs Significant Deficiency

Management will make adjustments to the policy surrounding the procedures regarding the quarterly review of the bank ratings for finanical institutions during the fiscal year ended September 30, 2026.

View Audit 379565

Finding 1167954 (2025-001)

Material Weakness 2025

City of Clive

IA

Internal Control / Segregation of Duties Questioned Costs Reporting

Finding 2025-001 Reporting Significant Deficiency in lnternal Control over Compliance FederalAgency Name: Department of the Treasury Program Name COVID-L9 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Finding Summary: The annual project and expenditure report we...

Finding 2025-001 Reporting Significant Deficiency in lnternal Control over Compliance FederalAgency Name: Department of the Treasury Program Name COVID-L9 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Finding Summary: The annual project and expenditure report were required to be submitted by April 30,2025. However, the annual project and expenditure report was submitted on May 5,2025. Responsible lndividuals: CoreyEastman, FinancialManager Corrective Action Planned: City of Clive acknowledges the comment and has implemented a process to ensure that all reports are accurate and submitted by the required due dates. Anticipated Completion Date: June 30, 2026

View Audit 379542

Finding 1167901 (2025-001)

Material Weakness 2025

Coldwater Community Schools

MI

Internal Control / Segregation of Duties Questioned Costs Cash Management § 200.303

Finding Number Federal Programs Audit: 2025-001; Responsible Person: Rachelle Roby; Management Views: Management agrees with the finding and is in the process of implementing the recommendation.; Corrective Action: The District will collaborate with the Director of Food Service to ensure that, when ...

Finding Number Federal Programs Audit: 2025-001; Responsible Person: Rachelle Roby; Management Views: Management agrees with the finding and is in the process of implementing the recommendation.; Corrective Action: The District will collaborate with the Director of Food Service to ensure that, when a physical count is conducted, the figures are verified by a second staff member for accuracy. Additionally, it will be required that all supporting documentation be submitted to the Chief Financial Officer (CFO) along with the claim figures. The CFO will review and compare the documentation against the data entered into the claiming system prior to the submission of the claim.; Anticipated Completion Date: 08/01/2025

View Audit 379369

Finding 1167881 (2025-001)

Material Weakness 2025

Mid Michigan College

MI

Questioned Costs Student Financial Aid Eligibility

Auditor Description of Condition and Effect. During our cost of attendance recalculation, we noted that for one student, an additional semester in which the student was not taking any classes was included in their calculation. As a result of this condition, the College overstated the student's finan...

Auditor Description of Condition and Effect. During our cost of attendance recalculation, we noted that for one student, an additional semester in which the student was not taking any classes was included in their calculation. As a result of this condition, the College overstated the student's financial need for the award year. However, no action was required by the College as the corrected cost of attendance still exceeded the student's awards. Auditor Recommendation. We recommend that the College implement a review process to ensure that all manual entries into the cost of attendance system are reviewed and approved by an independent second individual. Auditor Recommendation. We recommend that the College implement a review process to ensure that all manual entries into the cost of attendance system are reviewed and approved by an independent second individual. Corrective Action. Upon discovery of the cost of attendance calculation error, the College went through and determined that this was an isolated incident and had no impact on the amount of aid received by the student. To prevent a similar problem arising in the future, the College will implement a review process to have a second individual review and ensure the cost of attendance is being calculated accurately. Responsible Person. Michelle McNier, Director of Financial Aid. Anticipated Completion Date. June 30, 2026.

View Audit 379274

Finding 1167850 (2025-002)

Material Weakness 2025

Edgecombe County

NC

Eligibility Questioned Costs Significant Deficiency

Finding: 2025-001 Bond Covenant Compliance Finding: 2025-002 Edgecombe County, NC For the Year Ended June 30, 2025 Corrective Action Plan Section III - Federal Award Findings and Question Costs Name of contact person: Angel Joyner, Brandy Dawes, Tina Radford, and Virginia Ewuell - Medicaid Superviso...

Finding: 2025-001 Bond Covenant Compliance Finding: 2025-002 Edgecombe County, NC For the Year Ended June 30, 2025 Corrective Action Plan Section III - Federal Award Findings and Question Costs Name of contact person: Angel Joyner, Brandy Dawes, Tina Radford, and Virginia Ewuell - Medicaid Supervisors; Denise McKnight - Social Services Program Administrator Corrective Action: All Medicaid Supervisors will meet to review the findings from this audit. A PowerPoint training will be developed and delivered to staff based on these findings. During this training, supervisors will be retrained on the use of application checklist for their programs and will review the checklist to identify and add any information workers may be missing when completing their casework. The application checklist will be updated to include the dates when actions are taken to prevent workers from simply checking items off. This will require case workers to complete a second verification of each action so the date can be accurately entered. Supervisors will also receive training on pulling reports to ensure SSI terminations are reviewed and ex-parte reviews are completed timely. After the refresher training for Medicaid Supervisors, a mandatory group training will be provided for Medicaid workers on Income calculations, including pulling and viewing electronic verification sources, household composition, requests for Informaiton, SSI terminations, and Documentation. Workers will also be trained on the proper use and importance of the application checklist. Supervisors will be responsible for completing weekly random audits focusing on accuracy and timeliness. A 30-day performance improvement plan will be implemented for workers who identify through these audits as having repeated errors. Proposed Completion Date: June 30, 2026. Section II. Financial Statement Findings Name of contact person: Linda Barfield, Chief Financial Officer Corrective Action: The County acknowledges that Water District No. 4 did not meet the 100% debt service coverage requirement for general obligation and installment financing for the fiscal year ended June 30, 2025. While the District exceeded the required revenue bond coverage, the district-level net revenues were not sufficient to meet the combined debt service requirement. The County operates its water and sewer system as a single integrated utility system and does not maintain district-level rate structures. Revenues are generated and managed on a system-wide basis for financial stability and operational efficiency; however, USDA bond covenants require compliance to be measured by individual district. Although full compliance has not yet been achieved, the coverage ratio for District No. 4 continues to improve, increasing from 49% in FY 2023 to 61% in FY 2024 and to 65% in FY 2025. Management will continue to address this issue through ongoing financial monitoring and long-term system planning to achieve full covenant compliance. Edgecombe County County Administration Building 201 St. Andrew St., PO Box 10 Tarboro, NC 27886 252-641-7834 · Fax 252-641-0456 www.edgecombecountync.gov 176For the Year Ended June 30, 2025 Corrective Action Plan Edgecombe County County Administration Building 201 St. Andrew St., PO Box 10 Tarboro, NC 27886 252-641-7834 · Fax 252-641-0456 www.edgecombecountync.gov Section IV - State Award Findings and Question Costs Edgecombe County, NC Proposed Completion Date: Training and implementation of additional reviews and procedures will be implemented by January 15, 2025. Corrective actions for finding 2025-002 also apply to the State Award findings. Section III - Federal Award Findings and Question Costs (continued) 177

View Audit 379212

Finding 1167727 (2025-002)

Material Weakness 2025

The Road Home

UT

Questioned Costs Allowable Costs / Cost Principles Significant Deficiency

Management agrees with the finding. The weakness occurred due to the implementation of a change in the accrual process not initially being fully documented as an additional task in the billing workflow. Our corrective action plan is as follows: • Rectify the financial impact of the identified duplic...

Management agrees with the finding. The weakness occurred due to the implementation of a change in the accrual process not initially being fully documented as an additional task in the billing workflow. Our corrective action plan is as follows: • Rectify the financial impact of the identified duplicated cost (which is isolated to a single billing period) via a billing adjustment to ensure the net reimbursement of program expenses by the relevant funder is accurate. • Document the rationale for the payroll accrual and its subsequent reversal, and the individual steps required at each stage of the billing and review processes. The CFO, Controller and Grant Billing Manager are responsible for implementing this action plan which will be complete by end of December 2025. In the interim, the payroll accrual and reversal process is being subject to particular and focused review during the monthly billing process to ensure compliance while we implement the long-term plan.

View Audit 378969

Finding 1167665 (2025-004)

Material Weakness 2025

Town of North Haven, Connecticut

CT

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303

Allowable Costs - Special Education Cluster (IDEA) (Significant Deficiency - Other Matter) Description of Finding 1 employee’s pay rate was not updated to reflect the new fiscal year 2025 collective bargaining agreement for their specific union after its implementation in December 2024. Although ret...

Allowable Costs - Special Education Cluster (IDEA) (Significant Deficiency - Other Matter) Description of Finding 1 employee’s pay rate was not updated to reflect the new fiscal year 2025 collective bargaining agreement for their specific union after its implementation in December 2024. Although retroactive pay for hours worked prior to ratification was correctly calculated and paid, the payroll system continued using the prior contract’s rate for all subsequent pay periods through the end of the school year. This occurred due to a failure in the payroll update process following contract implementation. Statement of Concurrence or Nonconcurrence Management agrees with the finding. Corrective Action The Board of Education will implement additional controls over payroll updates and establish a documented process for updating pay rates immediately after contract ratification. Additionally, review and verification of rate changes, along with periodic reconciliation against approved salary schedules or union agreements, should be performed to ensure accuracy and compliance. Name of Contact Person Christian Strickland, BOE Chief Operating Officer Projected Completion Date June 30, 2025

View Audit 378913

Corrective Action Plans

Filters