Corrective Action Plans

Finding 1238541 (2025-005)

Material Weakness 2025

MN

Cash Management Reporting Significant Deficiency § 200.303

INTERNAL CONTROLS OVER CASH MANAGEMENT Federal Agency: Department of Transportation Federal Program: Formula Grants for Rural Areas and Tribal Transit Program Assistance Listing Number: 20.509 Federal Award Identification Number and Year: MN-2020-020-01 Pass-Through Agency: Minnesota Department of T...

INTERNAL CONTROLS OVER CASH MANAGEMENT Federal Agency: Department of Transportation Federal Program: Formula Grants for Rural Areas and Tribal Transit Program Assistance Listing Number: 20.509 Federal Award Identification Number and Year: MN-2020-020-01 Pass-Through Agency: Minnesota Department of Transportation Pass-Through Number: MN-2020-020-01, MN-2023-045-00 Award Period: Year Ended December 31, 2025 Compliance Requirement: Cash Management Type of Finding: Significant Deficiency in Internal Controls over Compliance Recommendation: It is recommended the Transit Board designate qualified personnel for conducting the quarterly reporting review. The review should be performed and documented. Formal procedures should be documented to ensure consistency and effectiveness of the quality review process. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Transit Board will continue to evaluate their internal staff capacity to determine if an internal control policy over cash management and other areas is beneficial. Name of the contact person responsible for corrective action: Kathy Schultz, Executive Director Planned completion date for corrective action plan: June 30, 2027

View Audit 413420

Finding 1238524 (2025-001)

Material Weakness 2025

Georgetown Housing Authority

SC

HUD Housing Programs Eligibility Reporting

Corrective Action Plan Section III - Federal Award Findings and Questioned Costs Finding 2025-001 Name of Contact Person: Alissa Collington, Executive Director Corrective Action:Mangement will review the recertification process and plan to monitor recertifications. Proposed Completion Date: Immediat...

Corrective Action Plan Section III - Federal Award Findings and Questioned Costs Finding 2025-001 Name of Contact Person: Alissa Collington, Executive Director Corrective Action:Mangement will review the recertification process and plan to monitor recertifications. Proposed Completion Date: Immediately

View Audit 413405

Finding 1238444 (2025-002)

Material Weakness 2025

Mobile Housing Authority

AL

HUD Housing Programs Eligibility Significant Deficiency

Management Response and Actions Taken: Incorrect Utility Allowance • MHA will expand its system’s bedroom count to include 6-bedroom units. This will eliminate the need to manually calculate Utility Allowances above 5-bedrooms. Additionally, management will review all 5+ bedroom unit files to ensure...

Management Response and Actions Taken: Incorrect Utility Allowance • MHA will expand its system’s bedroom count to include 6-bedroom units. This will eliminate the need to manually calculate Utility Allowances above 5-bedrooms. Additionally, management will review all 5+ bedroom unit files to ensure Utility Allowances are correctly reflected. • MHA will confirm the validation report is properly identifying any conflicts in the Utility Allowance selected versus voucher size and household composition to ensure errors are properly captured and corrected. Incorrect Payment Standard • MHA will review with all staff procedures for: o Requesting Payment Standard overrides; o Administrative Plan policies for application of a decrease in payment standards; o We have affirmed that the Yardi system settings accurately reflect MHA Administrative Plan policies regarding the handling of year-over-year Payment Standard decreases; and o MHA will add system validation checks to compare selected payment standards against household composition for each file and to evaluate if the current year selected payment standard has decreased from the prior year payment standard. Missing 9886 Form • Management will work with its software provider to develop a new system report to identify all minors whose date of birth would result in them turning 18 (becoming adults) after the effective date of the family’s annual recertification. This report will be run monthly and will identify all minors who have turned 18 during the month. Staff can then send appropriate notice and paperwork to the “new adult” to have them complete Form 9886a. Name of Responsible Person(s): Paul Watkins, HCV Program Administrator Projected Completion Date: December 31, 2026

View Audit 413313

Finding 1238441 (2025-001)

Material Weakness 2025

The Land Trust Alliance, Inc. and Affiliates

DC

Subrecipient Monitoring Reporting Significant Deficiency

Submitted to: U.S. Department of Agriculture The Land Trust Alliance, Inc. (“the Alliance”) respectfully submits the following corrective action plan for the year ended December 31, 2025. Name and address of independent public accounting firm: CBIZ CPAs 1899 L Street, NW, Suite 850 Washington, DC 20...

Submitted to: U.S. Department of Agriculture The Land Trust Alliance, Inc. (“the Alliance”) respectfully submits the following corrective action plan for the year ended December 31, 2025. Name and address of independent public accounting firm: CBIZ CPAs 1899 L Street, NW, Suite 850 Washington, DC 20036 Audit Period: January 1, 2025 through December 31, 2025 The finding from the December 31, 2025 schedule of findings is discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDING – FEDERAL AWARD PROGRAM AUDIT U.S. Department of Agriculture 2025-001 - Federal Funding Accountability and Transparency Act (FFATA) Reporting – Assistance Listing No. 10.676, Forest Legacy Program Recommendation: The Alliance should implement a procedure to allow for the consistent, timely reporting of subaward obligations of $30,000 or more to the SAM system. Action Taken: The Alliance had already submitted the required reporting in SAM.gov for each of the three subawards on June 30, 2026. Execution of the required reporting was not fully aligned across the relevant teams, resulting in the late filing of the FFATA reporting. As a result of the detection of the misalignment, Management has implemented the following actions: 1. Enhanced federal awards training: The Alliance engaged “Management Concepts”, a third-party firm expert in federal grants management, to deliver a three-day training on federal award compliance requirements back in May 2026. All staff responsible for managing federal awards participated actively in the training. 2. Policy clarification: The Alliance has explicitly incorporated the applicable requirement into its Subaward Management Policy, providing clear and consistent guidance for staff responsible for subaward administration. 3. Strengthened end-to-end process and Standard Operating Procedures (SOP): The Alliance has established and communicated an enhanced process with clearly defined roles, responsibilities, and coordination points across internal teams to support consistent execution of FFATA reporting, when applicable. If the U.S. Department of Agriculture has questions regarding this plan, please contact Ashley Demosthenes at 202-638-4725 or ADemosthenes@lta.org

View Audit 413311

Finding 1238440 (2025-001)

Material Weakness 2025

Dirne Health Centers, Inc.

ID

Special Tests & Provisions Eligibility Significant Deficiency

Department of Health and Human Services Dirne Health Centers, Inc. respectfully submits the following corrective action plan for the year ended December 31, 2025. Audit period: 01/1/25 – 12/31/25 The findings from the schedule of findings and questioned costs are discussed below. The findings are nu...

Department of Health and Human Services Dirne Health Centers, Inc. respectfully submits the following corrective action plan for the year ended December 31, 2025. Audit period: 01/1/25 – 12/31/25 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FINANCIAL STATEMENT AUDIT There were no financial statement findings in the audit period. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS Department of Health and Human Services 2025-01 Health Center Cluster– Assistance Listing No. 93.224 and 93.527 Recommendation: CLA recommends that the Clinic strengthen its review process over sliding fee discount determinations by implementing procedures to verify that each patient application is evaluated using current eligibility information and that the corresponding sliding fee scale level is accurately applied. CLA further recommends that the Clinic document evidence of review and approval before discounts are applied to patient encounters and establish a process for timely identification and correction of any discrepancies. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management is reviewing and strengthening Heritage Health’s Sliding Fee Discount Program procedures to ensure that sliding fee eligibility determinations are completed and documented consistently in accordance with the organization’s board-approved policies. Management will clarify procedures related to eligibility and income verification, the application of the appropriate sliding fee scale, and documentation of the review and approval process. Staff responsible for sliding fee determinations will receive training on the updated procedures. Management will also review system configuration and workflows related to the application of sliding fee discounts and establish a periodic internal monitoring process to verify that eligibility determinations are appropriately documented, the correct sliding fee level is applied, and identified discrepancies are investigated and corrected in a timely manner. Name(s) of the contact person(s) responsible for corrective action: Sonya Zhang Planned completion date for corrective action plan: December 31, 2026 If the Department of Health and Human Services has questions regarding this plan, please call Sonya Zhang at 520-667-6333.

View Audit 413305

Finding 1238439 (2025-002)

Material Weakness 2025

Watts Healthcare Corporation

CA

Cash Management Significant Deficiency

Management concurs with the finding, and the actions described below will be implemented. 1. Staff Training - Mandatory training will be implemented for Front Office, Billing, and Eligibility staff focusing on proper income verification, patient classification, documentation requirements, and accura...

Management concurs with the finding, and the actions described below will be implemented. 1. Staff Training - Mandatory training will be implemented for Front Office, Billing, and Eligibility staff focusing on proper income verification, patient classification, documentation requirements, and accurate application of the Sliding Fee Discount Program in accordance with HRSA Compliance Manual and HRSA Operational Site Visit Protocol. 2. Policy and Procedure Changes - The Sliding Fee Discount Program policies and procedures are being revised to provide clearer guidance regarding eligibility determination, income verification, discount application, annual renewals, staff responsibilities, and supervisory oversight. 3. Ongoing Monitoring - Quarterly compliance reviews are now conducted to monitor accurate application of the sliding fee schedule, completeness of supporting documentation, and compliance with established procedures. Corrective action and retraining are provided promptly when discrepancies are identified. Personnel responsible for implementation: Kristopher Zuniga Position of responsible personnel: Interim Chief Financial Officer Expected date of implementation: Implemented as of June 30, 2026.

View Audit 413304

Finding 1238421 (2025-002)

Material Weakness 2025

New Hope Housing, Inc.

TX

Significant Deficiency Internal Control / Segregation of Duties

Finding #2025-002 – Significant Deficiency and Other Noncompliance. Federal Awards: U. S. Department of Housing and Urban Development, Passed through City of Houston, Assistance Listing #: 14.239, Contract number: 4600016100, 4600008347, 4600015112, 4600013379, 460000866, 4600009893, 4600010749, and...

Finding #2025-002 – Significant Deficiency and Other Noncompliance. Federal Awards: U. S. Department of Housing and Urban Development, Passed through City of Houston, Assistance Listing #: 14.239, Contract number: 4600016100, 4600008347, 4600015112, 4600013379, 460000866, 4600009893, 4600010749, and 03-0774/FC55324, Contract period: Grant agreement expires 15-30 years from the date of completion. U. S. Department of Housing and Urban Development, Passed through Texas Department of Housing and Community Affairs, Assistance Listing #: 14.239, Contract number: 92230123418 and 1000084, Contract period: Grant agreement expires 20-30 years from the date of completion. Condition and context: In a sample of 40 tenant files, we noted four instances where the monthly rental rate recorded on the property’s rent roll did not match the rate authorized in the signed lease contract. Recommendation: Implement a secondary review of rental agreements and rates per the property management system. Consider periodic reconciliation compliance procedures that compares a sample of active rent rolls directly against executed lease files. Planned corrective action: Effective October 1, 2026, NHH’s Property Management team will conduct monthly reconciliations comparing a sample of active rent rolls and property management system records directly against executed lease agreements and amendments. A minimum of 10% of active tenant files at each property will be reviewed monthly. Any discrepancies identified will be corrected promptly. NHH’s Compliance team will perform quarterly oversight reviews beginning January 2027 to verify that the monthly reconciliations are completed and documented and that identified discrepancies are resolved. NHH’s Vice President of Property Management and Maintenance will review the quarterly reconciliations. Responsible officer: Stacey Lastovica, Vice President of Property Management and Maintenance. Estimated completion date: Monthly Property Management reconciliations will begin on October 1, 2026, with quarterly Compliance oversight beginning in January 2027. These controls will remain ongoing.

View Audit 413281

Finding 1238407 (2025-002)

Material Weakness 2025

Hancock Rural Telephone Corporation

IN

Reporting Significant Deficiency § 200.510

Management understands and agrees with the finding. The Cooperative recognizes that expenditures reported to Hancock County for the fiscal year ended December 31, 2025, inadvertently included federal award expenditures related to the prior fiscal year, resulting in an improper cut-off. To address th...

Management understands and agrees with the finding. The Cooperative recognizes that expenditures reported to Hancock County for the fiscal year ended December 31, 2025, inadvertently included federal award expenditures related to the prior fiscal year, resulting in an improper cut-off. To address this, management has implemented and documented procedures to ensure that only expenditures incurred within the current fiscal year are included in amounts reported to Hancock County. These procedures include a cutoff checklist completed by the preparer prior to each submission, which documents the date range verified for each expenditure line and confirms that all amounts fall within the current grant period. Submission of expense reports to Hancock County will be held until the checklist is fully completed and signed off. These controls will be applied to any future federal grants to prevent recurrence.

View Audit 413272

Finding 1238340 (2025-003)

Material Weakness 2025

Bronx Community Health Network, Inc.

NY

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

Bronx Community Health Network, Inc. (“BCHN”) Corrective Action Plan For the Year Ended December 31, 2025 Health Resources and Services Administration (“HRSA”) Federal Award Finding Finding 2025-003 – Reporting Description of Finding: There was no evidence of the review and approval of the Uniform D...

Bronx Community Health Network, Inc. (“BCHN”) Corrective Action Plan For the Year Ended December 31, 2025 Health Resources and Services Administration (“HRSA”) Federal Award Finding Finding 2025-003 – Reporting Description of Finding: There was no evidence of the review and approval of the Uniform Data System (UDS) before its submission. Statement of Concurrence: We concur with the finding above. Corrective Action: Management has implemented a formal UDS review and approval process requiring management review and documented approval by the designated responsible official prior to submission. In this process, the CFO will email the draft UDS report to the CEO for review. Once the UDS is reviewed, the CEO will email the CFO approving the UDS report. Then the CFO will submit the report. Evidence of the review and approval will be maintained and retained with the final UDS submission documentation to ensure accuracy, completeness, and compliance with reporting requirements. Completion Date: 09/10/2026 Name of Contact Person: Alicia Tenny Chief Financial Officer Tel. No.: (917) 364-1156 E-mail: atenny@bchnhealth.org If HRSA has questions regarding this Corrective Action Plan, please call Alicia Tenny at (917) 364-1156. Sincerely yours, _________________________ Alicia Tenny Chief Financial Officer

View Audit 413181

Finding 1238296 (2025-001)

Material Weakness 2025

Sunray Communities, Inc.

TX

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

CORRECTIVE ACTION PLAN Name and Number of the Project: Sunray Communities, Inc. No. 112-EE003 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 regardin...

CORRECTIVE ACTION PLAN Name and Number of the Project: Sunray Communities, Inc. No. 112-EE003 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 2025-001: Supportive Housing for the Elderly, Assistance Listing 14.157 CORRECTIVE ACTION COMPLETED: An adjusting audit entry was made to reduce the property management fees and an accounts receivable - other from the property management company was created for the overpayment. Management will monitor the expenses to ensure in compliance with the HUD approved Form 9839. We have prepared the corrective action plan as required by the standards applicable to financial statements contained in Government Auditing Standards and by the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards. Any questions regarding the above corrective action plan should be directed to Ms. Natalie Bastien, Vice President, RPM Living.

View Audit 413165

Finding 1238291 (2025-002)

Material Weakness 2025

St. Mary's Community Services

CA

Allowable Costs / Cost Principles Procurement, Suspension & Debarment Subrecipient Monitoring § 200.303

Condition The audit identified opportunities to strengthen documentation and monitoring controls related to federal grant compliance and Uniform Guidance requirements. Corrective Action Plan Management will enhance its federal awards compliance framework by implementing formal policies, assigning re...

Condition The audit identified opportunities to strengthen documentation and monitoring controls related to federal grant compliance and Uniform Guidance requirements. Corrective Action Plan Management will enhance its federal awards compliance framework by implementing formal policies, assigning responsibilities, improving monitoring procedures, and providing staff training. Actions include: • Develop and implement a Uniform Guidance Compliance Manual. • Update procurement policies to align with Uniform Guidance requirements. • Establish written policies for cash management, allowable costs, and federal grant documentation standards. • Develop and document a formal cost allocation methodology for shared program costs. • Assign and document federal award compliance responsibilities across accounting, grants management, and program staff. • Create a grant compliance monitoring checklist and implement quarterly documented compliance reviews. • Conduct Uniform Guidance training for accounting, grants, and program personnel. Responsible Official Chief Financial Officer and Grant Manager. Anticipated Completion Date October 31, 2026.

View Audit 413145

Finding 1238149 (2025-001)

Material Weakness 2025

County of Clinton, New York

NY

Subrecipient Monitoring Internal Control / Segregation of Duties Student Financial Aid

Finding 2025-001: CFDA #93.658 Foster Care, Title IV-E CFDA #93.659 Adoption Assistance Corrective Action: Management intends to implement procedures to improve document retention, electronic record storage, supervisory review, and overall monitoring controls for the Foster Care and Adoption Assista...

Finding 2025-001: CFDA #93.658 Foster Care, Title IV-E CFDA #93.659 Adoption Assistance Corrective Action: Management intends to implement procedures to improve document retention, electronic record storage, supervisory review, and overall monitoring controls for the Foster Care and Adoption Assistance programs. Contact: Randy Lozier, County Treasurer Anticipated Completion Date: By December 31, 2026

View Audit 413065

Finding 1238143 (2025-002)

Material Weakness 2025

Housing Authority of Racine County

WI

HUD Housing Programs Significant Deficiency

2025-002 Housing Choice Voucher Cluster – Assistance Listing No. 14.871 and 14.879 Recommendation: We recommend that the Authority review its system of internal control related to the policies and procedures in place to mitigate the risk of noncompliance with the requirements of the stated criteria....

2025-002 Housing Choice Voucher Cluster – Assistance Listing No. 14.871 and 14.879 Recommendation: We recommend that the Authority review its system of internal control related to the policies and procedures in place to mitigate the risk of noncompliance with the requirements of the stated criteria. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: PHA identified weaknesses in a new operating model, and has continued to fine-tune tracking and transparencies towards improved compliance. SEMAP reports are pulled monthly, and internal file audits are being conducted. Standard operating procedures have been updated along with file checklists to ensure files are fully compliant. Name(s) of the contact person(s) responsible for corrective action: Katie Kasprzak, Executive Director Planned completion date for corrective action plan: 12/31/2026

View Audit 413048

Finding 1238141 (2025-001)

Material Weakness 2025

Housing Authority of Racine County

WI

HUD Housing Programs Eligibility Significant Deficiency

2025-001 Housing Choice Voucher Cluster – Assistance Listing No. 14.871 and 14.879 Recommendation: We recommend that the Authority review its system of internal control related to the policies and procedures in place to mitigate the risk of noncompliance with the requirements of the stated criteria....

2025-001 Housing Choice Voucher Cluster – Assistance Listing No. 14.871 and 14.879 Recommendation: We recommend that the Authority review its system of internal control related to the policies and procedures in place to mitigate the risk of noncompliance with the requirements of the stated criteria. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: PHA identified weaknesses in a new operating model, and has continued to fine-tune tracking and transparencies towards improved compliance. SEMAP reports are pulled monthly, and internal file audits are being conducted. Standard operating procedures have been created along with file checklists to ensure files are fully compliant. Name(s) of the contact person(s) responsible for corrective action: Katie Kasprzak, Executive Director Planned completion date for corrective action plan: 12/31/2026

View Audit 413048

Finding 1238122 (2025-001)

Material Weakness 2025

Hamlet Housing Authority

NC

Eligibility HUD Housing Programs Reporting

Corrective Action Plan Section III - Federal Award Findings and Questioned Costs Finding 2025-001 Name of Contact Person: Gary Jones, Executive Director Corrective Action: Mangement will review the recertification process and plan to monitor recertifications. Proposed Completion Date: Immediately

View Audit 413006

Finding 1238100 (2025-001)

Material Weakness 2025

Stearns County

MN

Eligibility Significant Deficiency Internal Control / Segregation of Duties § 200.303

Finding Number: 2025-001 Finding Title: Eligibility Program: 93.558 Temporary Assistance for Needy Families Name of Contact Person Responsible for Corrective Action: Michael Pooler, Economic Supports Division Director Corrective Action Planned: The County will continue to implement TANF quality cont...

Finding Number: 2025-001 Finding Title: Eligibility Program: 93.558 Temporary Assistance for Needy Families Name of Contact Person Responsible for Corrective Action: Michael Pooler, Economic Supports Division Director Corrective Action Planned: The County will continue to implement TANF quality control review measures and hold weekly unit meetings to address case-specific questions and policy clarifications with program experts. These practices support ongoing learning, reduce knowledge gaps, and reinforce the importance of consistent documentation and attention to detail across the unit. Anticipated Completion Date: March 31, 2027

View Audit 412954

Finding 1238099 (2025-003)

Material Weakness 2025

Christ Community Health Services Augusta, Inc.

GA

Reporting Cash Management Significant Deficiency

Uniform Data System Reporting – Significant Deficiency 2025-003 Management agrees with the finding and will enhance procedures for the preparation and review of UDS reporting. Management will implement procedures and controls to ensure amounts reported are reviewed for compliance with UDS requiremen...

Uniform Data System Reporting – Significant Deficiency 2025-003 Management agrees with the finding and will enhance procedures for the preparation and review of UDS reporting. Management will implement procedures and controls to ensure amounts reported are reviewed for compliance with UDS requirements prior to submission.

View Audit 412948

Finding 1238098 (2025-002)

Material Weakness 2025

Christ Community Health Services Augusta, Inc.

GA

Significant Deficiency

Sliding Fee Discount Documentation and Application of Policies – Significant Deficiency 2025-002 Management acknowledges that supporting documentation used to determine sliding fee discounts should be consistently maintained and guidelines consistently applied. Management will implement procedures a...

Sliding Fee Discount Documentation and Application of Policies – Significant Deficiency 2025-002 Management acknowledges that supporting documentation used to determine sliding fee discounts should be consistently maintained and guidelines consistently applied. Management will implement procedures and controls to ensure required documentation is maintained and that sliding fee discount policies are consistently applied in accordance with established guidelines.

View Audit 412948

Finding 1238082 (2025-004)

Material Weakness 2025

Kandiyohi County

MN

Eligibility Reporting Significant Deficiency § 200.303

ELIGIBILITY Recommendation: It is recommended that the County start reviewing casefiles. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will start printing a coversheet for the Fiscal Supervisor to sign...

ELIGIBILITY Recommendation: It is recommended that the County start reviewing casefiles. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will start printing a coversheet for the Fiscal Supervisor to sign and retain physical evidence of the review being done. Name of the contact person responsible for corrective action plan: Karen Anderson, Chief Financial Officer Planned completion date for corrective action plan: December 31, 2026

View Audit 412906

Finding 1238080 (2025-001)

Material Weakness 2025

Thurston County Economic Development Council

WA

Subrecipient Monitoring Cash Management Significant Deficiency § 200.305

2025-001 Significant Deficiency in Internal Control and Compliance over Major Programs Funding Agency: Department of Defense ALN: 12.002 Recommendation: JSP recommends the Organization strengthen internal controls over cash management by establishing formal payment processing timelines, implementing...

2025-001 Significant Deficiency in Internal Control and Compliance over Major Programs Funding Agency: Department of Defense ALN: 12.002 Recommendation: JSP recommends the Organization strengthen internal controls over cash management by establishing formal payment processing timelines, implementing monitoring procedures to track outstanding reimbursement requests, and conducting supervisory reviews to ensure subrecipient payments are made promptly. Contact person responsible for corrective action: Taylor McEachern, Accounting Manager The EDC agrees with the findings. Management acknowledges that reimbursement payments to subrecipients were not consistently made within 30 calendar days of receipt of the payment request as required by 2 CFR 200.305(b)(3) and agrees that internal controls over cash management should be strengthened. Management notes that during the audit period the EDC experienced delays in receiving payments from the federal awarding agencies associated with this and other grants, which contributed to the condition; management is taking action to ensure that the EDC’s cash-flow timing does not affect the timeliness of subrecipient reimbursements going forward. To correct the conditions, management will implement the following: • Establish formal, written payment processing timelines governing the review and disbursement of subrecipient reimbursement requests, with a defined internal deadline that ensures payment within the 30-calendar-day requirement. • Implement monitoring procedures to log and track all outstanding reimbursement requests from date of receipt through payment, so that requests approaching the deadline are flagged and prioritized. • Conduct periodic supervisory reviews of the payment log to confirm requests are being processed timely and to identify and resolve any delays. • Monitor the timing of drawdowns and reimbursements from the federal awarding agencies and, where recurring delays affect the EDC’s ability to pay subrecipients timely, have an action plan to process the payments within the 30-calendar-day requirement. The Accounting Manager will be overseeing the payment tracking process and report monthly to the C&I Director and Grant Manager to reinforce accountability for timely disbursement Anticipated completion date: September 2026

View Audit 412905

Finding 1238067 (2025-002)

Material Weakness 2025

Okanogan County Child Development Association

WA

Internal Control / Segregation of Duties Significant Deficiency

Condition: The Association’s controls were not effective to ensure transactions recorded to payroll liability accounts were appropriate and balances were accurately stated at year end on the trial balance. Explanation of disagreement with audit finding: There is no disagreement with the audit findin...

Condition: The Association’s controls were not effective to ensure transactions recorded to payroll liability accounts were appropriate and balances were accurately stated at year end on the trial balance. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Containment Payroll liability payments are now supported by payroll reports, tax filings, vendor invoices, and other applicable documentation rather than relying solely on general ledger balances. Root Cause The root cause was a prior practice of paying payroll liabilities based on general ledger balances rather than the underlying payroll or vendor documentation. In addition, benefitrelated changes were being made directly in the MIP financial system on the default timesheets when the changes should have been recorded in the HRMS employee record. Action Taken Payroll liability accounts are now reconciled each pay period to payroll reports and supporting documentation. Benefit-related changes are recorded in the HRMS employee record and processed through payroll rather than being manually changed in the MIP financial system. Payroll liability balances are also reviewed as part of the monthly-end close (MEC) process, with discrepancies researched and corrected as needed. As part of the year-end close, OCCDA will also review payroll liability account activity and system configuration to determine whether consolidating payroll liabilities into a single liability account, rather than maintaining separate accounts by liability type, would improve the efficiency and accuracy of reconciliation and financial reporting.

View Audit 412878

Finding 1238066 (2025-001)

Material Weakness 2025

Okanogan County Child Development Association

WA

Internal Control / Segregation of Duties Cash Management Significant Deficiency

Condition: The Association’s controls were not effective to ensure it was recognizing revenue and unearned revenue for reimbursement-based programming in the same period the expenditure occurred. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action ...

Condition: The Association’s controls were not effective to ensure it was recognizing revenue and unearned revenue for reimbursement-based programming in the same period the expenditure occurred. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Containment Advanced funds are recorded as deferred revenue at time of receipt. Periodic adjustments are made through the Accounts Receivable (AR) module as part of the monthly-end close (MEC) process to reclassify unearned revenue as the related expenditures are incurred. Root Cause The root cause was that, in prior years, grant revenue and related accruals were not consistently reconciled to expenditures. Cash receipts were recognized as grant revenue without adequately considering the timing of the related expenditures. For awards that crossed fiscal periods, this resulted in variances between earned and deferred revenue and, in some cases, expenditures exceeding available grant funding. Action Taken OCCDA has implemented the use of the Accounts Receivable (AR) module for grant revenue reporting and reconciliation. Grant activity is reviewed as part of the monthly-end close (MEC) process, including reconciliation of expenditures, reimbursements, and deferred revenue. Monthly management reports have also been updated to include both earned revenue and deferred revenue, providing management with improved visibility into grant activity and supporting timely recognition of grant revenue.

View Audit 412878

Finding 1238055 (2025-002)

Material Weakness 2025

Oklahoma City Housing Authority

OK

HUD Housing Programs Subrecipient Monitoring Allowable Costs / Cost Principles

Housing Voucher Cluster – Assistance Listing Nos. 14.871/14.879 – PIC Reporting Recommendation: We recommend that the Authority reviews its process for uploading data to the PIC system to ensure each HUD-50058 recertification gets submitted timely and accurately. Explanation of disagreement with aud...

Housing Voucher Cluster – Assistance Listing Nos. 14.871/14.879 – PIC Reporting Recommendation: We recommend that the Authority reviews its process for uploading data to the PIC system to ensure each HUD-50058 recertification gets submitted timely and accurately. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: During this time, HUD was working to switch reporting systems from PIC to HIP. Our software showed the files in question were submitted and no rejection noted, yet the records are not showing as received on HUD’s end. The Authority will work with our software provider and review any HUD changes affecting the PIC System. We will continue to review all records included in this upload, and work to ensure other records are uploaded manually. Name of the contact person responsible for corrective action: Richard Marshall Planned completion date for corrective action plan: 10/31/2026

View Audit 412865

Finding 1238045 (2025-002)

Material Weakness 2025

Ramah Navajo School Board, Inc.

NM

Eligibility Significant Deficiency

Finding Number: 2025‐002 Program Name/Assistance Listing Title: Tribal Self Determination Assistance Listing Number: 93.441 Contact Person: Tahnee Brown, Controller Anticipated Completion Date: Implemented ‐ Effective Immediately Planned Corrective Action: Pine Hill Health Center has instructed Pati...

Finding Number: 2025‐002 Program Name/Assistance Listing Title: Tribal Self Determination Assistance Listing Number: 93.441 Contact Person: Tahnee Brown, Controller Anticipated Completion Date: Implemented ‐ Effective Immediately Planned Corrective Action: Pine Hill Health Center has instructed Patient Registration staff to obtain and retain documentation supporting patient eligibility. If documentation is not available, the patient will be classified as “Pending Verification” or “Ineligible” until the required documentation is provided. The Billing Manager will monitor the process and ensure eligibility documentation is retained in the patient's health record.

View Audit 412850

Finding 1238044 (2025-001)

Material Weakness 2025

Ramah Navajo School Board, Inc.

NM

Special Tests & Provisions Significant Deficiency

Finding Number: 2025‐001 Program Name/Assistance Listing Title: Tribal Self Determination Assistance Listing Number: 93.441 Contact Person: Tahnee Brown, Controller Anticipated Completion Date: December 2026 Planned Corrective Action: Human Resources has added staff and implemented periodic file rev...

Finding Number: 2025‐001 Program Name/Assistance Listing Title: Tribal Self Determination Assistance Listing Number: 93.441 Contact Person: Tahnee Brown, Controller Anticipated Completion Date: December 2026 Planned Corrective Action: Human Resources has added staff and implemented periodic file reviews, self‐audits, and tracking reminders to ensure background investigations and renewals are completed in a timely manner. The Human Resources Director will oversee the process and ensure background investigation procedures are followed. HR will continue to provide training on background investigation and adjudication requirements

View Audit 412850

Corrective Action Plans

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