Corrective Action Plans

Finding 1167365 (2025-007)

Material Weakness 2025

NH

Subrecipient Monitoring Significant Deficiency

Condition: The property is not utilizing the Replacement Reserve as intended and is instead paying for costs out of the operating account. Action Plan: Please see below the new process ensuring replacement reserve requests are being made in a timely manner: 1) Quarterly Assessment: Quarterly review ...

Condition: The property is not utilizing the Replacement Reserve as intended and is instead paying for costs out of the operating account. Action Plan: Please see below the new process ensuring replacement reserve requests are being made in a timely manner: 1) Quarterly Assessment: Quarterly review are now in place to assess reserve balances and ensure funds are used for necessary repairs. Monthly cash flow reports will align reserve balances with property needs. 2) Formal Utilization Procedure: A written procedure has been established for requesting and using replacement reserve funds. This includes clear guidelines, approval workflows, and thresholds for reserve levels based on property needs. 3) Monitoring & Reporting: Periodic audits will ensure funds are spent according to HUD guidelines. 4) Staff Training & Oversight: Staff will receive training on proper reserve management, and management will increase oversight to ensure funds are used appropriately. Completion Date: 5/1/2026 Contact: Jackie Oliveira-Director of Affordable Housing

View Audit 378387

Finding 1167353 (2025-012)

Material Weakness 2025

State of New York

NY

Reporting Procurement, Suspension & Debarment Subrecipient Monitoring § 200.303

State Agency: NYS Division of Homeland Security and Emergency Services Program Name: Disaster Grants – Public Assistance (Presidentially Declared Disasters) ALN #: 97.036 Single Audit Contact: Celines Jorge-Gecewicz Title: Director of Finance for Disaster Recovery Programs Telephone: (518) 473-5694 ...

State Agency: NYS Division of Homeland Security and Emergency Services Program Name: Disaster Grants – Public Assistance (Presidentially Declared Disasters) ALN #: 97.036 Single Audit Contact: Celines Jorge-Gecewicz Title: Director of Finance for Disaster Recovery Programs Telephone: (518) 473-5694 E-mail Address: Celines.Jorge-Gecewicz@dhses.ny.gov Audit Report Reference: 2025-012 Anticipated Completion Date: 3/31/2026 Corrective Action Planned: The Division of Homeland Security and Emergency Services (DHSES) Disaster Recovery Programs (DRP) acknowledges the identified discrepancies between amounts as reported to the Federal government and the supporting documentation associated with those award amounts as required by the Federal Funding Accountability and Transparency Act (FFATA). DHSES DRP has implemented immediate corrective actions to strengthen internal guidance related to reporting and internal controls monitoring to ensure timely and accurate FFATA reporting. The nature of FEMA reimbursement often takes years from the emergency declaration to the reimbursement of expenses and the project closeout and may include multiple disbursements to applicants over multiple fiscal years. FFATA data reported in all prior New York State Fiscal Years was completed in the now retired FFATA Subaward Reporting System (FSRS.gov). This system was retired on March 6, 2025, and replaced with subaward reporting on SAM.gov on March 8, 2025 – just 23 days before the close of State Fiscal Year (FY) 2025. All existing data from FSRS.gov was migrated to SAM.gov. During transition training, Federal representatives indicated that while there could be accuracy issues related to the data migration – grantees would not be required to remediate these issues. After the completion of migration, DHSES DRP staff noticed data inaccuracies and submitted support requests through the US General Services Administration’s Federal Service Desk (fsdsupport@gsa.gov) and USAspending Service Desk Team (usaspending.help@fiscal.treasury.gov). However, to date, no Federal solution has been identified. While efforts to identify a solution at the Federal level have been unsuccessful, DHSES DRP staff continue to review and correct all information previously submitted for open disasters. Going forward staff will make necessary corrections to SAM.gov, where feasible, to achieve full compliance. Additionally, the State will revise Budget Bulletin L-0302 - Federal Funding Accountability and Transparency Act Guidance to remind agencies to be aware of the conversion to SAM.gov and the need to verify/correct data, and report inaccuracies to the Federal government.

View Audit 378379

Finding 1167352 (2025-011)

Material Weakness 2025

State of New York

NY

Subrecipient Monitoring

State Agency: Office of Addiction Services and Supports Program Name: Block Grants for Prevention and Treatment of Substance Abuse ALN #: 93.959 Single Audit Contact: Steven Shrager Title: Director of Audit Services Telephone: (518) 485-2053 E-mail Address: steven.shrager@oasas.ny.gov Audit Report R...

State Agency: Office of Addiction Services and Supports Program Name: Block Grants for Prevention and Treatment of Substance Abuse ALN #: 93.959 Single Audit Contact: Steven Shrager Title: Director of Audit Services Telephone: (518) 485-2053 E-mail Address: steven.shrager@oasas.ny.gov Audit Report Reference: 2025-011 Anticipated Completion Date: 3/31/2026 Corrective Action Planned: New York State Office of Addiction Services and Supports (OASAS) agrees that enhanced subrecipient monitoring policies, procedures and internal control will help ensure the State’s compliance with 45 CFR 75.352(d) and 45 CFR 75.352(e). While monitoring activities are currently performed – OASAS will improve the documentation of the activities performed – including keeping a written list of all factor considerations used to determine which subrecipients are subject to additional monitoring procedures. OASAS will continue to use a “priority list” to record high-risk subrecipients subject to additional monitoring. Additionally, OASAS will maintain documentation of input from any other sources that result in the decision to conduct a review of a provider. Information will be filed and maintained pertaining to reasoning for selected providers whose priority varies in status of ranking on this priority list.

View Audit 378379

Finding 1167351 (2025-010)

Material Weakness 2025

State of New York

NY

Subrecipient Monitoring Reporting Questioned Costs

State Agency: Office of Addiction Services and Supports Program Name: Block Grants for Prevention and Treatment of Substance Abuse ALN #: 93.959 Single Audit Contact: Steven Shrager Title: Director of Audit Services Telephone: (518) 485-2053 E-mail Address: steven.shrager@oasas.ny.gov Audit Report R...

State Agency: Office of Addiction Services and Supports Program Name: Block Grants for Prevention and Treatment of Substance Abuse ALN #: 93.959 Single Audit Contact: Steven Shrager Title: Director of Audit Services Telephone: (518) 485-2053 E-mail Address: steven.shrager@oasas.ny.gov Audit Report Reference: 2025-010 Anticipated Completion Date: 3/31/2026 Corrective Action Planned: The condition found was due the timing of the implementation of the Office of Addiction Services and Supports (OASAS) corrective action plan for a finding that was identified in the previous fiscal year. As a result of staffing changes and constraints brought about by the COVID-19 pandemic, the Federal Funding Accountability and Transparency Act (FFATA) reporting requirements were not adequately considered, and FFATA reporting was not completed in the prior year. Resource constraints continued to be a challenge throughout the current fiscal year, which prevented OASAS from fully implementing its corrective action plan during this period. OASAS will review and enhance its policies, procedures, and internal controls to ensure that all amounts passed through to subrecipients and subcontractors under subawards as defined in 45 CFR 75.2 are reported in accordance with the FFATA federal regulations. All OASAS first-tier subrecipients will receive the required notification of FFATA applicability per CFR 200.311. SAM.gov will be updated for obligations under the Federal Fiscal Year (FFY) 2020 award and forward. Due to employee separations in the Grants Management and Aid to Localities Budget area, the lead assigned to this task in December 2024 was the Bureau Director. Staff from Grants and Aid to Localities attended the December and following webinars held for the transition from FSRS to SAM.gov. The actual transition to SAM.gov occurred in early March 2025, which delayed our reporting. FFY23 entries were made in FSRS prior to the transition, but the system would not allow us to submit and entries did not subsequently migrate to SAM.gov. FFY23 entries were re-entered in June 2025. In addition to the FFY21 COVID Relief Funds and FFY24 grant reporting included in the table above, FFY25 entries were made on July 1, 2025, August 25, 2025, and September 22, 2025 to correspond with the first date of expected expenditure by subrecipients (July 1) as well as the available allocations of the FFY25 award per the Notices of Awards (NOAs) (50%, 75%, and 100%, respectively). OASAS intends to complete FFY21 American Rescue Plan funds notices and follow-up fall 2026.

View Audit 378379

Finding 1167350 (2025-009)

Material Weakness 2025

State of New York

NY

Subrecipient Monitoring § 200.501

State Agency: Office of Mental Health Program Name: Block Grants for Community Mental Health Services ALN #: 93.958 Single Audit Contact: April Wojtkiewicz Title: Director, Office of Community Budget & Financial Management Telephone: (518) 474-5968 E-mail Address: April.Wojtkiewicz@omh.ny.gov Audit ...

State Agency: Office of Mental Health Program Name: Block Grants for Community Mental Health Services ALN #: 93.958 Single Audit Contact: April Wojtkiewicz Title: Director, Office of Community Budget & Financial Management Telephone: (518) 474-5968 E-mail Address: April.Wojtkiewicz@omh.ny.gov Audit Report Reference: 2025-009 Anticipated Completion Date: 3/31/2026 Corrective Action Planned: Office of Mental Health (OMH) updated policies and procedures regarding subrecipient monitoring in March 2025 and will continue to update the federal certification form annually to ensure that all required award identification information is included. Further, OMH initiated an expense report process to review award specific expense reports for the Mental Health Block grant in SFY2024-25. Additionally, while a formalized risk assessment was not conducted, one has been developed to assess subrecipient risk of noncompliance. This risk assessment will be used in conjunction with the review of award specific expense reports to determine those subrecipients that need additional monitoring. Applicable policies and procedures will be updated as appropriate upon completion. Lastly, OMH has adopted a tracking mechanism that will be used to track and review all subrecipient single audit submissions during the upcoming review cycle.

View Audit 378379

Finding 1167349 (2025-008)

Material Weakness 2025

State of New York

NY

Subrecipient Monitoring Questioned Costs Procurement, Suspension & Debarment

State Agency: Office of Mental Health Program Name: Block Grants for Community Mental Health Services ALN #: 93.958 Single Audit Contact: April Wojtkiewicz Title: Director, Office of Community Budget & Financial Management Telephone: (518) 474-5968 E-mail Address: April.Wojtkiewicz@omh.ny.gov Audit ...

State Agency: Office of Mental Health Program Name: Block Grants for Community Mental Health Services ALN #: 93.958 Single Audit Contact: April Wojtkiewicz Title: Director, Office of Community Budget & Financial Management Telephone: (518) 474-5968 E-mail Address: April.Wojtkiewicz@omh.ny.gov Audit Report Reference: 2025-008 Anticipated Completion Date: 3/31/2026 Corrective Action Planned: Office of Mental Health (OMH) acknowledges that there was an oversight in reporting amounts passed through to subrecipients as required by Federal Funding Accountability and Transparency Act (FFATA). OMH updated policies and procedures regarding the FFATA in March 2025 and will report on the amounts passed through to subrecipients and subcontractors in SFY2025-26.

View Audit 378379

Finding 1167347 (2025-006)

Material Weakness 2025

State of New York

NY

Subrecipient Monitoring

State Agency: Office of Children and Family Services Program Name: Social Services Block Grant ALN #: 93.667 Single Audit Contact: Bonnie Hahn Title: Audit Liaison Telephone: (518) 486-1034 E-mail Address: Bonnie.Hahn@ocfs.ny.gov Audit Report Reference: 2025-006 Anticipated Completion Date: 3/31/202...

State Agency: Office of Children and Family Services Program Name: Social Services Block Grant ALN #: 93.667 Single Audit Contact: Bonnie Hahn Title: Audit Liaison Telephone: (518) 486-1034 E-mail Address: Bonnie.Hahn@ocfs.ny.gov Audit Report Reference: 2025-006 Anticipated Completion Date: 3/31/2026 Corrective Action Planned: The Office of Children and Family Services (OCFS) Bureau of Local District Services and Financial Systems (BLDSFS) has implemented enhanced fiscal monitoring to review Local Department of Social Services (LDSS) claims in accordance with the Federal Code of Regulations; (CFR) 45 CFR 75.352(d) and 45 CFR 75.352(e) to ensure the federal funds (Title XX and Title XX TANF transfer funds) spent by the local districts were spent in compliance with federal statutes, regulations, and the terms and conditions of the subaward. The BLDSFS enhanced fiscal monitoring activities (started in SFY 22-23) include a review of supporting documentation to determine the adequacy and appropriateness of Title XX claims. The goal is to review each county once every year selecting the highest risk counties first based on the annual risk assessment. In addition to the enhanced fiscal monitoring being conducted by BLDSFS, the Division of Child Welfare and Community Services (CWCS) has developed monitoring procedures for on-site reviews of participants that have received services under the Social Services Block Grant (Title XX, which also includes Title XX TANF transfer funds) to determine if they were eligible to receive those services. CWCS has created a check list to be used during each case review and began onsite reviews of documentation supporting the Title XX payments made on behalf of eligible individuals on March 26, 2025. Since that date, CWCS has reviewed 33 Title XX cases in six local districts. Of these cases, 9 were funded by TANF transfer funds. The schedule of monitoring activities performed by OCFS will be determined based on the annual Title XX risk assessment and will consist of approximately 48 cases per quarter, beginning 1/1/2026.

View Audit 378379

Finding 1167345 (2025-004)

Material Weakness 2025

State of New York

NY

Matching / Level of Effort / Earmarking Subrecipient Monitoring Allowable Costs / Cost Principles

State Agency: Office of Temporary and Disability Assistance Program Name: Child Support Services ALN #: 93.563 Single Audit Contact: Thomas Cooper Title: Deputy Commissioner – Audit & Quality Improvement Telephone: (518) 473-6035 E-mail Address: Thomas.cooper@otda.ny.gov Audit Report Reference: 2025...

State Agency: Office of Temporary and Disability Assistance Program Name: Child Support Services ALN #: 93.563 Single Audit Contact: Thomas Cooper Title: Deputy Commissioner – Audit & Quality Improvement Telephone: (518) 473-6035 E-mail Address: Thomas.cooper@otda.ny.gov Audit Report Reference: 2025-004 Anticipated Completion Date: 12/31/2026 Corrective Action Planned: The Office of Temporary and Disability Assistance (OTDA) enters into grant agreements with local districts to provide programmatic services for the Child Support Services program. Local districts initially cover 100% of costs incurred under the grant and periodically submit requests for reimbursement to the State of New York for services rendered. OTDA reimburses local districts only for the federal share of the costs incurred, while the local districts provide the matching funds required by the State of New York. During the fiscal year ended March 31, 2025, OTDA relied upon the local districts’ match rate of 34% to ensure the State met their matching requirements of the Child Support Services program. The audit identified that OTDA does not have a process or internal controls in place to verify the sources of funds used by local districts to meet the matching requirements of the federal program awards, ensuring that these sources are allowable under federal regulations. OTDA will enhance the monitoring of subrecipients to ensure funds utilized by subrecipients for costsharing or matching purposes are in accordance with 45 CFR 75.306(b). OTDA will determine the appropriate business unit to assume this responsibility and develop appropriate procedures such as requiring attestations from subrecipients that the source of matching funds is allowable, develop risk-based sampling of subrecipients to perform audits to ensure the allowability of matching funds, etc. OTDA will work towards operationalizing the corrective action with an anticipated implementation date of December 31, 2026.

View Audit 378379

Finding 1167341 (2025-003)

Material Weakness 2025

Tri County Area Schools

MI

Special Tests & Provisions Subrecipient Monitoring Cash Management

This finding is due to the District not having the proper controls in place to prevent, detect, or correct an incorrect monthly meal claim. The month that had the incorrect meal claim used incomplete Z-Reports which resulted in the meal claim being submitted for less than it should have been. The pe...

This finding is due to the District not having the proper controls in place to prevent, detect, or correct an incorrect monthly meal claim. The month that had the incorrect meal claim used incomplete Z-Reports which resulted in the meal claim being submitted for less than it should have been. The persons responsible for the corrective action are Lisa Newton, the Food Service Director and Corey Bordo, the Director of Business and Finance. The anticipated completion date of the corrective action plan is immediate. The plan for monitoring adherence is the Food Service Director will ensure that all meal counts are final on the Z-Report before the claim requests are made.

View Audit 378376

Finding 1167334 (2025-003)

Material Weakness 2025

Housing Authority of the City of Marianna

AR

Subrecipient Monitoring Internal Control / Segregation of Duties

We were not aware of the requirement to include the required prevailing wage rate clause in every contract greater than $2,000. We will ensure the required clause is included in all construction contracts greater than $2,000.

View Audit 378369

Finding 1167331 (2025-001)

Material Weakness 2025

American University

DC

Reporting Subrecipient Monitoring

Management of American University agrees with this finding and proposes the following Corrective Action Plan: Finding 2025-001 Reporting Grantor: Department of Transportation Program: Highway Safety Cluster Assistance Listing #: 20.600 Award Year: 07/1/2024 - 06/30/2025 Pass-through Entity: DC Distr...

Management of American University agrees with this finding and proposes the following Corrective Action Plan: Finding 2025-001 Reporting Grantor: Department of Transportation Program: Highway Safety Cluster Assistance Listing #: 20.600 Award Year: 07/1/2024 - 06/30/2025 Pass-through Entity: DC District Department of Transportation (DDOT) Pass-through Number: PT10197 Corrective Action Plan: American University acknowledges that the FY2025 End of Year Report under the Grant Agreement with the District of Columbia Department of Transportation was not retained due to the departure of the Principal Investigator, which limited access to the report. To prevent recurrence, the University has required additional research administration training for relevant staff, implemented centralized submission of all technical reports through the Office of Sponsored Awards and Research Administration, and enhanced grant closeout procedures to ensure all deliverables are captured when a PI departs. Periodic internal reviews will confirm that required reports are retained centrally and accessible as needed. Date of completion: June 30, 2026

View Audit 378368

Finding 1167322 (2025-003)

Material Weakness 2025

Dodge County Housing Authority

WI

Subrecipient Monitoring Reporting

The Executive Director continues to work to assume this responsibility to ensure this is prepared accurately. Anticipated resolution with future submission. Contact Donna Braun at 920-386-2866 x 101.

View Audit 378348

Finding 1167134 (2025-001)

Material Weakness 2025

Rockland Street Elderly Housing, Inc. 023-Ee206

MA

HUD Housing Programs Subrecipient Monitoring Eligibility

a. Finding 2025-001; Supportive Housing for the Elderly, Federal Assistance Listing Number 14.157 i. Comments on the Finding a. Management concurs with the finding that the Corporation should ensure annual tenant recertification Form 50059’s are completed timely and EIVs are run timely. ii. Planned ...

a. Finding 2025-001; Supportive Housing for the Elderly, Federal Assistance Listing Number 14.157 i. Comments on the Finding a. Management concurs with the finding that the Corporation should ensure annual tenant recertification Form 50059’s are completed timely and EIVs are run timely. ii. Planned Corrective Action a. Management has communicated with the staff the importance of timely annual tenant recertifications and EIV reporting. On a going forward basis, management will enhance its monitoring of compliance with these requirements to ensure that annual tenant recertifications are completed and EIVs are run within an appropriate time frame. iii. Anticipated Completion Date a. Corrective actions have been completed.

View Audit 378176

Finding 1167131 (2025-001)

Material Weakness 2025

Geneva Avenue Elderly Housing, Inc. 023-Ee-110

MA

HUD Housing Programs Subrecipient Monitoring Eligibility

a. Finding 2025-001; Supportive Housing for the Elderly, Federal Assistance Listing Number 14.157 i. Comments on the Finding a. Management concurs with the finding that the Corporation should ensure annual tenant recertification Form 50059’s are completed timely and EIVs are run timely. ii. Planned ...

a. Finding 2025-001; Supportive Housing for the Elderly, Federal Assistance Listing Number 14.157 i. Comments on the Finding a. Management concurs with the finding that the Corporation should ensure annual tenant recertification Form 50059’s are completed timely and EIVs are run timely. ii. Planned Corrective Action a. Management has communicated with the staff the importance of timely annual tenant recertifications and EIV reporting. On a going forward basis, management will enhance its monitoring of compliance with these requirements to ensure that annual tenant recertifications are completed and EIVs are run within an appropriate time frame. iii. Anticipated Completion Date a. Corrective actions have been completed.

View Audit 378174

Finding 1167089 (2025-002)

Material Weakness 2025

Anchor Community, Inc. Dba Redi Anchor Apts 101-Hd029

CO

Questioned Costs Subrecipient Monitoring

Finding 2025-002: At March 31, 2025, the Corporation's reserve for replacements fund was not invested in an interest bearing account. Comments on the Finding and Each Recommendation: The Agent should transfer the reserve for replacements fund into an interest-bearing account. Action(s) taken or plan...

Finding 2025-002: At March 31, 2025, the Corporation's reserve for replacements fund was not invested in an interest bearing account. Comments on the Finding and Each Recommendation: The Agent should transfer the reserve for replacements fund into an interest-bearing account. Action(s) taken or planned on the finding: Agreed. The Agent concurs with the finding and auditor's recommendation.

View Audit 378169

Finding 1167088 (2025-001)

Material Weakness 2025

Anchor Community, Inc. Dba Redi Anchor Apts 101-Hd029

CO

Questioned Costs Subrecipient Monitoring

Finding 2025-001: The Corporation did not make $5,634 of the total required reserve for replacement deposits during the year ended March 31, 2025. Comments on the Finding and Each Recommendation: Management should make all required deposits to the reserve for replacements fund. Management should tra...

Finding 2025-001: The Corporation did not make $5,634 of the total required reserve for replacement deposits during the year ended March 31, 2025. Comments on the Finding and Each Recommendation: Management should make all required deposits to the reserve for replacements fund. Management should transfer $5,634 from the operating account to the reserve for replacements fund. Action(s) taken or planned on the finding: Management concurs with the finding and the auditor's recommendation. The Corporation made additional deposits totaling $5,634 to the reserve for replacements fund on May 20, 2025. No further action is required.

View Audit 378169

Finding 1167085 (2025-001)

Material Weakness 2025

17th Avenue Redi, A Nonprofit Corporation 101-11198

CO

Cash Management HUD Housing Programs Questioned Costs

Finding 2025-001: The Corporation paid invoices on behalf of related entities in the amount of $819. Comments on the Finding and Each Recommendation: The Corporation has requested reimbursement from the related entity, which was received July 21, 2025. No further action is required.

View Audit 378168

Finding 1167027 (2025-003)

Material Weakness 2025

Rio Housing Association, Inc. /covenant Place 075-Ee045

WI

Internal Control / Segregation of Duties Subrecipient Monitoring

Segregation of Duties Supportive Housing for the Elderly – Assistance Listing No. 14.157 Recommendation: The Project should continue to evaluate its staffing in order to segregate incompatible duties whenever possible. Explanation of disagreement with audit finding: There is no disagreement with the...

Segregation of Duties Supportive Housing for the Elderly – Assistance Listing No. 14.157 Recommendation: The Project should continue to evaluate its staffing in order to segregate incompatible duties whenever possible. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The board of directors will continue to closely monitor the financial operations of the Project. Name(s) of the contact person(s) responsible for corrective action: Mary Gilberts, Management Agent Planned completion date for corrective action plan: June 2026

View Audit 378086

Finding 1166971 (2025-001)

Material Weakness 2025

St. Luke's Health Care Clinic Dba Amador Health Center

NM

Subrecipient Monitoring Eligibility

Management’s View: During the recent audit, a finding was identified within the Sliding Fee Discount Program (SFDP) related primarily to data entry errors, incomplete documentation, and lack of proper review. Errors included incorrect or missing income calculations, misclassification of SFDP categor...

Management’s View: During the recent audit, a finding was identified within the Sliding Fee Discount Program (SFDP) related primarily to data entry errors, incomplete documentation, and lack of proper review. Errors included incorrect or missing income calculations, misclassification of SFDP categories, and inaccuracies entered into the EHR. These discrepancies were attributed to inconsistent staff performance, insufficient oversight, and gaps in training. Since the audit, the former Office Manager and two front desk employees responsible for SFDP data entry have left the organization. Proposed Corrective Action: 1. Strengthening Oversight & Accountability Office Manager Signature Required on ALL SFDP Forms signifying they have reviewed for accuracy, completeness, verified income documentation, ensure calculations are correct, and confirm appropriately and accurately entered into Athena software. 2. Updated Workflow & Process Improvement 3. Training & Competency Development - Annual Refresher Training (All Front Office Staff) The next training has already been scheduled for the week of December 8th. 4. Onboarding Process for New Front Office Employees A strengthened onboarding process will ensure new hires understand the SFDP accurately from day one. 5. Ongoing Monitoring & Quality Assurance Monthly Internal Reviews The Office Manager will audit a percentage of SFDP applications monthly, they will be documented and accuracy rates will be documented for all frontdesk staff. The Director of Administration will ensure these are maintained monthly. 6. Reinforcing the Importance of SFDP Accuracy Anticipated Completion Date: No later then December 31, 2025 Responsible Official: Diana Salcedo, Director of Administration

View Audit 378015

Finding 1166739 (2025-003)

Material Weakness 2025

Hegg Memorial Hospital D/b/a Hegg Health Center

IA

Special Tests & Provisions Questioned Costs Subrecipient Monitoring § 200.303

Federal Agency Name: Department of Agriculture Program Name: Community Facilities Loans and Grants Federal Financial Assistance Listing #10.766 Compliance Requirement: Special Tests and Provisions Finding Summary: The Center's reserve account is fully funded per the requirements of the loan resoluti...

Federal Agency Name: Department of Agriculture Program Name: Community Facilities Loans and Grants Federal Financial Assistance Listing #10.766 Compliance Requirement: Special Tests and Provisions Finding Summary: The Center's reserve account is fully funded per the requirements of the loan resolution security agreement. However, there is no documented secondary monitoring of the reserve balance as compared to the required minimum reserve balance. Responsible Individuals: Crystal Richter, Interim CFO Corrective Action Plan: Hired an Accountant July 2025. Management will ensure there are multiple people involved and overseeing the reserve balance and documentation will be retained review and approval over the reserve balance. Anticipated Completion Date: December 2025

View Audit 377856

Finding 1166715 (2025-004)

Material Weakness 2025

Urban Minority Alcoholism and Drug Abuse Outreach Program of Lucas County, Inc.

OH

Subrecipient Monitoring Cash Management § 200.305

2025-004 Inadequate Cash Management Procedures and Noncompliance with Period of Performance Requirements Criteria: Per 2 CFR §200.305(b), non-Federal entities must minimize the time elapsing between the transfer of funds from the U.S. Treasury and the disbursement of those funds for program purposes...

2025-004 Inadequate Cash Management Procedures and Noncompliance with Period of Performance Requirements Criteria: Per 2 CFR §200.305(b), non-Federal entities must minimize the time elapsing between the transfer of funds from the U.S. Treasury and the disbursement of those funds for program purposes under the period of performance. Furthermore, entities must have written procedures that clearly outline the timing and methods for drawing down federal funds in accordance with cash management requirements. These procedures should be documented, reviewed, approved, and periodically revised to ensure ongoing compliance. Client’s Response: The organization will revise its current draw-down procedures to reflect timing and methods for drawing down federal funds that are in compliance with cash management requirements. Proposed Implementation Date – 12/31/2025 Name of Contact Person – John Edwards, Sr. Email: jledwards@umadaop.org Phone: 419-255-4444

View Audit 377793

Finding 1166714 (2025-003)

Material Weakness 2025

Urban Minority Alcoholism and Drug Abuse Outreach Program of Lucas County, Inc.

OH

Subrecipient Monitoring § 200.332 § 200.501

2025-003 Lack of Formal Subrecipient Monitoring Criteria: According to 2 CFR §200.332 (Requirements for Pass-Through Entities), a pass-through entity must monitor the activities of subrecipients as necessary to ensure that federal funds are used for authorized purposes and in compliance with applica...

2025-003 Lack of Formal Subrecipient Monitoring Criteria: According to 2 CFR §200.332 (Requirements for Pass-Through Entities), a pass-through entity must monitor the activities of subrecipients as necessary to ensure that federal funds are used for authorized purposes and in compliance with applicable statutes, regulations, and terms and conditions of the Federal award. Required monitoring includes, but is not limited to, the following: a. Reviewing financial and programmatic reports; b. Performing risk assessments of subrecipients; c. Following up on deficiencies identified through audits or reviews; and d. Ensuring subrecipients have required audits under 2 CFR §200.501. Lack of documented subrecipient monitoring constitutes noncompliance with Uniform Guidance. Client Response: While the organization was in constant contact with subrecipients regarding the progress of their programming, those meetings were not transcribed. In the future, the organization will require mid year and year-end impact reports from each grant subrecipient. Proposed Implementation Date – 12/31/2025 Name of Contact Person – John Edwards, Sr. Email: jledwards@umadaop.org Phone: 419-255-4444

View Audit 377793

Finding 1166712 (2025-001)

Material Weakness 2025

Urban Minority Alcoholism and Drug Abuse Outreach Program of Lucas County, Inc.

OH

Subrecipient Monitoring Allowable Costs / Cost Principles Period of Performance § 200.1 § 200.308 § 200.309 § 200.344 § 200.403

2025-001 Costs Incurred Beyond the Period of Performance Criteria: According to 2 CFR §§200.1, 200.308, 200.309, 200.344, and 200.403(h), a non-Federal entity may only charge allowable costs incurred during the approved budget period of the Federal award’s period of performance, and any costs incurr...

2025-001 Costs Incurred Beyond the Period of Performance Criteria: According to 2 CFR §§200.1, 200.308, 200.309, 200.344, and 200.403(h), a non-Federal entity may only charge allowable costs incurred during the approved budget period of the Federal award’s period of performance, and any costs incurred before the Federal award was made that were authorized by the Federal awarding agency or pass-through entity. All financial obligations incurred under the Federal award must be liquidated within the required time period. Costs incurred outside the approved period of performance are unallowable and constitute questioned costs. Client’s Response: During the grant cycle, the Organization submitted for an extension but did not receive confirmation of said extension. During the current fiscal year, the Organization has implemented additional controls to ensure that all grant funding is expended within the timeframe allotted. Proposed Implementation Date – 12/31/2025 Name of Contact Person – John Edwards, Sr. Email: jledwards@umadaop.org Phone: 419-255-4444

View Audit 377793

Finding 1166685 (2025-002)

Material Weakness 2025

MacOmb Intermediate School District

MI

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303

Condition: The Intermediate School District (ISD) did not have internal controls in place to ensure that all the expenditures included in the quarterly claims for reimbursement were allowable. Planned Corrective Action: The ISD will review the process used by the local districts to report quarterly ...

Condition: The Intermediate School District (ISD) did not have internal controls in place to ensure that all the expenditures included in the quarterly claims for reimbursement were allowable. Planned Corrective Action: The ISD will review the process used by the local districts to report quarterly expenditures for the Administrative Outreach program. We will then create a process that ensures that the local districts provide supporting documentation that allows us to monitor the quarterly submission amounts for accuracy. Contact person responsible for corrective action: Chris Frank, Asst. Superintendent for Business Anticipated Completion Date: 1/31/2026

View Audit 377762

Finding 1166676 (2025-001)

Material Weakness 2025

Jewish Federation of Metropolitan Chicago

IL

Subrecipient Monitoring Cash Management Significant Deficiency § 200.305

Condition: Controls in place did not minimize the time elapsing between the transfer receipt of billing from the subrecipient and disbursement of federal dollars to the subrecipient in accordance with the guidance above. Planned Corrective Action: Federation typically receives vouchers from 15 subre...

Condition: Controls in place did not minimize the time elapsing between the transfer receipt of billing from the subrecipient and disbursement of federal dollars to the subrecipient in accordance with the guidance above. Planned Corrective Action: Federation typically receives vouchers from 15 subrecipient organizations approximately ten to fifteen days after the end of each month. The number of vouchers per agency depends on the number of programs they provide. Staff reviews the vouchers for allowability and accuracy and submits them to the Illinois Department of Human Services (IDHS) within 24 days of month end. During fiscal year 2025, the IDHS remitted payment to Federation anywhere from 20 to 82 days after the month end. Upon receipt of the cash, Federation typically pays subrecipient organizations within two to three business days. In the instances identified by the auditors, the IDHS remitted payment over 30 days after Federation submitted the vouchers for reimbursement. Federation’s longstanding policy has always been to reimburse each subrecipient agency after it has received payment from the IDHS. Prior to fiscal year 2024, the IDHS usually provided payment within 15 days of receipt of our voucher and therefore Federation was able to comply with the 30-day requirement. However, reimbursement delays from IDHS began to occur in fiscal year 2024 and continued throughout fiscal year 2025, resulting in the findings describe herein. IDHS made two advance payments to Federation during fiscal 2025, but the amounts provided were not adequate to fund all payments within the 30 day time period. To ensure compliance with the 30-day reimbursement requirement, Federation will again request advances from the IDHS. Kyu Kim, Director of Finance and Contract Compliance, Refugee Services will be responsible for the oversight of the reimbursement payments. Contact person responsible for corrective action: Kyu Kim Anticipated Completion Date: July 2026

View Audit 377702

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