Corrective Action Plans

Finding 1238512 (2025-005)

Material Weakness 2025

Interstate Renewable Energy Council, Inc.

NY

Reporting Internal Control / Segregation of Duties Subrecipient Monitoring § 200.302 § 200.303

Management Response: Management will retain a complete support package for each Federal financial report, including the accounting records used at the time of preparation which will be provided by the outsourced accounting firm, the completed report, a reconciliation of reported amounts to the under...

Management Response: Management will retain a complete support package for each Federal financial report, including the accounting records used at the time of preparation which will be provided by the outsourced accounting firm, the completed report, a reconciliation of reported amounts to the underlying accounting records, and explanations for any reconciling items. The preparer will assemble and document the support package before submission. A knowledgeable individual other than the preparer, which may include management or the outsourced accounting firm, will review the report and reconciliation for completeness, accuracy, and consistency with award requirements. Evidence of review, approval, and resolution of any differences will be retained with the support of reporting. Management will also evaluate subsequent accounting adjustments to determine whether previously submitted reports require correction or follow-up with the Federal agency. Proposed Completion Date – October 01, 2026 Contact – Ronny Sandoval, Board Chair Email: ronnys@irecusa.org

View Audit 413394

Finding 1238503 (2025-002)

Material Weakness 2025

National Fund for Excellence in American Indian Education

TX

Subrecipient Monitoring Procurement, Suspension & Debarment § 200.208 § 200.332 § 200.334 § 200.337 § 200.344

2025-002 – Subrecipient Monitoring Corrective action plan: 1. The subaward template was corrected in September 2026 and is in use. The corrected form was used for the subaward executed September 18, 2026 and carries the full set of federal award identification elements required by 2 CFR 200.332(b)(1...

2025-002 – Subrecipient Monitoring Corrective action plan: 1. The subaward template was corrected in September 2026 and is in use. The corrected form was used for the subaward executed September 18, 2026 and carries the full set of federal award identification elements required by 2 CFR 200.332(b)(1). 2. Obtain the current unique entity identifier for each subrecipient from SAM.gov and confirm it against subrecipient records. 3. Issue Modification No. 1 to each of the seven Round 1 subaward agreements, adding the Assistance Listing Number and title, the subaward budget period start and end dates, and the unique entity identifier where it was omitted, and issue an amended award notification supplying the same information for the Round 1 award made by award letter. Article IV, Section 6.11 of each subaward agreement permits NFEAIE to issue non-substantive modifications unilaterally in writing, so issuance is not contingent on subrecipient countersignature. Each modification will be transmitted to the subrecipient's authorized official and fiscal contact by email and the transmittal retained in the subaward file. 4. Issue Modification No. 1 on the same basis to Round 2 subawards R201 through R206, which were executed on the prior template. 5. Adopt a written subaward issuance procedure incorporating a checklist of the information required by 2 CFR 200.332(b)(1), completed, signed, and retained in the subaward file before execution, with CFO review of the executed instrument required before any disbursement. Personnel responsible for corrective action: Nicholas Cunningham, CFO Estimated corrective action completion date: November 30, 2026

View Audit 413380

Finding 1238501 (2025-001)

Material Weakness 2025

National Fund for Excellence in American Indian Education

TX

Cash Management Subrecipient Monitoring Allowable Costs / Cost Principles § 200.1 § 200.102 § 200.305

2025-001 – Cash Management Corrective action plan: 1. Remittance of $116,558.82 to the Department of Health and Human Services Payment Management System. Completed September 21, 2026. 2. Adopt a written cash management and drawdown procedure as an amendment to NFEAIE’s Financial Management Policies ...

2025-001 – Cash Management Corrective action plan: 1. Remittance of $116,558.82 to the Department of Health and Human Services Payment Management System. Completed September 21, 2026. 2. Adopt a written cash management and drawdown procedure as an amendment to NFEAIE’s Financial Management Policies and Procedures Manual, requiring that each request be limited to disbursements expected within a defined period not to exceed 45 days, that the request identify the disbursements it supports, that the Chief Financial Officer (CFO) approve the request before submission, that the request and its supporting schedule be retained in the award file, and that any direction from an awarding agency to draw on a different schedule, or any award term authorizing a different payment basis, be documented in writing and retained in the award file. 3. Amend the manual to assign the CFO responsibility for computing interest earned on federal advances not less than semiannually, to prescribe the allocation of interest between federal and non-federal funds where accounts are commingled, to apply the $500 annual retention threshold, to require the amount payable to the federal government to be recorded in the period earned, and to require remittance through the Payment Management System. Interest on federal advances is currently being accrued as a payable in the period earned, as reflected in journal entry JE-INT-2026H1 recorded at June 30, 2026, and will continue to be recorded on at least a semi-annual basis. 4. Evaluate holding federal advances in a separate account so that an allocation between federal and non-federal funds is not required, and implement if operationally feasible. 5. Present both procedures to the Finance Committee and the Board of Directors for adoption at the Board's fourth quarter 2026 meeting. Personnel responsible for corrective action: Nicholas Cunningham, CFO Estimated corrective action completion date: December 31, 2026

View Audit 413380

Finding 1238490 (2025-002)

Material Weakness 2025

OM FISHER HOME INC

VT

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting

Finding Reference Number: 2025-002 View of Responsible Officials and Planned Corrective Action Date: Corrective Action: Management will take appropriate corrective action to address the identified issue and strengthen internal controls. The organization has initiated a corrective action plan that in...

Finding Reference Number: 2025-002 View of Responsible Officials and Planned Corrective Action Date: Corrective Action: Management will take appropriate corrective action to address the identified issue and strengthen internal controls. The organization has initiated a corrective action plan that includes engaging an external accounting service to provide additional oversight and support for accounting functions. In addition, the Business Office Manager position is being restructured into two separate positions to provide clearer separation of duties, accountability, and internal controls. One of the new positions will be the Business Office and Accounting Coordinator, with defined responsibility for accounting-related functions and processes. The second position will focus on employee services and administrative responsibilities. These organizational changes are intended to strengthen oversight, improve segregation of duties, and reduce the risk of errors or inappropriate financial practices. Management will monitor implementation of these changes to ensure the corrective actions are effective and sustained. Name of Contact Person: Dawn Palowski, Executive Director Project Completion Date: December 31, 2026

View Audit 413371

Finding 1238483 (2025-001)

Material Weakness 2025

Telacu Housing-Riverside, Inc. Dba Telacu Las Fuentes 143-Ee052-Wah-Np

CA

Subrecipient Monitoring HUD Housing Programs

Name of auditee: TELACU Housing-Riverside, Inc. HUD auditee identification number: 143-EE052-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended December 31, 2025 CAP prepared by Name: Christien Tran Position: Management agent representative Telephone num...

Name of auditee: TELACU Housing-Riverside, Inc. HUD auditee identification number: 143-EE052-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended December 31, 2025 CAP prepared by Name: Christien Tran Position: Management agent representative Telephone number: 323-838-8556 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Statement of condition 2025-001: Management fees of $37,688 were prepaid at December 31, 2025. Recommendation: The Corporation should reduce management fees to the limits communicated by HUD going forward and the Agent should repay the amount prepaid at December 31, 2025. Actions Taken or Planned on the Finding: Management concurs with the finding. On June 17, 2026, HUD clarified its notification regarding Section 1(e) of the HUD approved Management Agent Certification (form HUD-9839-B). At that point, the Agent took prompt corrective action. The identified prepayment was returned to the Corporation in full on July 15, 2026.

View Audit 413355

Finding 1238481 (2025-001)

Material Weakness 2025

Telacu Housing Monterey Park INC Telacu Monterey Prk Plz 122ee085wahnp

CA

Subrecipient Monitoring HUD Housing Programs

Name of auditee: TELACU Housing-Monterey Park, Inc. HUD auditee identification number: 122-EE085-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended December 31, 2025 CAP prepared by Name: Christien Tran Position: Management agent representative Telephone...

Name of auditee: TELACU Housing-Monterey Park, Inc. HUD auditee identification number: 122-EE085-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended December 31, 2025 CAP prepared by Name: Christien Tran Position: Management agent representative Telephone number: 323-838-8556 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Statement of condition 2025-001: Management fees of $6,099 were prepaid at December 31, 2025. Recommendation: The Corporation should reduce management fees to the limits communicated by HUD going forward and the Agent should repay the amount prepaid at December 31, 2025. Actions Taken or Planned on the Finding: Management concurs with the finding. On June 17, 2026, HUD clarified its notification regarding Section 1(e) of the HUD approved Management Agent Certification (form HUD-9839-B). At that point, the Agent took prompt corrective action. The identified prepayment was returned to the Corporation in full on July 15, 2026.

View Audit 413354

Finding 1238479 (2025-001)

Material Weakness 2025

Telacu Housing - Riverside Ii, Inc. Dba Telacu El Paseo 143ee064wahnp

CA

Subrecipient Monitoring HUD Housing Programs

Name of auditee: TELACU Housing-Riverside II, Inc. HUD auditee identification number: 143-EE064-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended December 31, 2025 CAP prepared by Name: Christien Tran Position: Management agent representative Telephone ...

Name of auditee: TELACU Housing-Riverside II, Inc. HUD auditee identification number: 143-EE064-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended December 31, 2025 CAP prepared by Name: Christien Tran Position: Management agent representative Telephone number: 323-838-8556 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Statement of condition 2025-001: Management fees of $17,484 were prepaid at December 31, 2025. Recommendation: The Corporation should reduce management fees to the limits communicated by HUD going forward and the Agent should repay the amount prepaid at December 31, 2025. Actions Taken or Planned on the Finding: Management concurs with the finding. On June 17, 2026, HUD clarified its notification regarding Section 1(e) of the HUD approved Management Agent Certification (form HUD-9839-B). At that point, the Agent took prompt corrective action. The identified prepayment was returned to the Corporation in full on July 15, 2026.

View Audit 413352

Finding 1238477 (2025-001)

Material Weakness 2025

Telacu Housing - Rialto Iii, Inc. Dba Telacu Rio Alto 143-Ee072wahnp

CA

Subrecipient Monitoring HUD Housing Programs

Name of auditee: TELACU Housing-Rialto III, Inc. HUD auditee identification number: 143-EE072-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended December 31, 2025 CAP prepared by Name: Christien Tran Position: Management agent representative Telephone nu...

Name of auditee: TELACU Housing-Rialto III, Inc. HUD auditee identification number: 143-EE072-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended December 31, 2025 CAP prepared by Name: Christien Tran Position: Management agent representative Telephone number: 323-838-8556 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Statement of condition 2025-001: Management fees of $2,841 were prepaid at December 31, 2025. Recommendation: The Corporation should reduce management fees to the limits communicated by HUD going forward and the Agent should repay the amount prepaid at December 31, 2025. Actions Taken or Planned on the Finding: Management concurs with the finding. On June 17, 2026, HUD clarified its notification regarding Section 1(e) of the HUD approved Management Agent Certification (form HUD-9839-B). At that point, the Agent took prompt corrective action. The identified prepayment was returned to the Corporation in full on July 15, 2026.

View Audit 413349

Finding 1238475 (2025-001)

Material Weakness 2025

Telacu Hsg-El Monte Ii, INC Dba Telacu El Encanto 122-Ee125-Wah-Np

CA

Subrecipient Monitoring HUD Housing Programs

Name of auditee: TELACU Housing-El Monte II, Inc. HUD auditee identification number: 122-EE125-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended December 31, 2025 CAP prepared by Name: Christien Tran Position: Management agent representative Telephone n...

Name of auditee: TELACU Housing-El Monte II, Inc. HUD auditee identification number: 122-EE125-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended December 31, 2025 CAP prepared by Name: Christien Tran Position: Management agent representative Telephone number: 323-838-8556 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Statement of condition 2025-001: Management fees of $1,884 were prepaid at December 31, 2025. Recommendation: The Corporation should reduce management fees to the limits communicated by HUD going forward and the Agent should repay the amount prepaid at December 31, 2025. Actions Taken or Planned on the Finding: Management concurs with the finding. On June 17, 2026, HUD clarified its notification regarding Section 1(e) of the HUD approved Management Agent Certification (form HUD-9839-B). At that point, the Agent took prompt corrective action. The identified prepayment was returned to the Corporation in full on July 15, 2026.

View Audit 413346

Finding 1238473 (2025-001)

Material Weakness 2025

Telacu Housing San Bernadino III INC Dba Telacu Buena Vista 143-Ee049

CA

Subrecipient Monitoring HUD Housing Programs

Name of auditee: TELACU Housing-San Bernardino III, Inc. HUD auditee identification number: 143-EE049-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended December 31, 2025 CAP prepared by Name: Christien Tran Position: Management agent representative Tele...

Name of auditee: TELACU Housing-San Bernardino III, Inc. HUD auditee identification number: 143-EE049-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended December 31, 2025 CAP prepared by Name: Christien Tran Position: Management agent representative Telephone number: 323-838-8556 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Statement of condition 2025-001: Management fees of $19,978 were prepaid at December 31, 2025. Recommendation: The Corporation should reduce management fees to the limits communicated by HUD going forward and the Agent should repay the amount prepaid at December 31, 2025. Actions Taken or Planned on the Finding: Management concurs with the finding. On June 17, 2026, HUD clarified its notification regarding Section 1(e) of the HUD approved Management Agent Certification (form HUD-9839-B). At that point, the Agent took prompt corrective action. The identified prepayment was returned to the Corporation in full on July 15, 2026.

View Audit 413343

Finding 1238460 (2025-001)

Material Weakness 2025

Telacu Housing-Alhambra, Inc. Dba Telacu Las Palmas 122-Ee103-Wah-Np

CA

Subrecipient Monitoring HUD Housing Programs

Name of auditee: TELACU Housing-Alhambra, Inc. HUD auditee identification number: 122-EE103-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended December 31, 2025 CAP prepared by Name: Christien Tran Position: Management agent representative Telephone numb...

Name of auditee: TELACU Housing-Alhambra, Inc. HUD auditee identification number: 122-EE103-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended December 31, 2025 CAP prepared by Name: Christien Tran Position: Management agent representative Telephone number: 323-838-8556 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Statement of condition 2025-001: Management fees of $7,863 were prepaid at December 31, 2025. Recommendation: The Corporation should reduce management fees to the limits communicated by HUD going forward and the Agent should repay the amount prepaid at December 31, 2025. Actions Taken or Planned on the Finding: Management concurs with the finding. On June 17, 2026, HUD clarified its notification regarding Section 1(e) of the HUD approved Management Agent Certification (form HUD-9839-B). At that point, the Agent took prompt corrective action. The identified prepayment was returned to the Corporation in full on July 15, 2026.

View Audit 413333

Finding 1238458 (2025-001)

Material Weakness 2025

Telacu Housing-El Monte, INC Dba Telacu Amador 122-Ee034-Wah-Np

CA

Subrecipient Monitoring HUD Housing Programs

Name of auditee: TELACU Housing-El Monte, Inc. HUD auditee identification number: 122-EE034-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended December 31, 2025 CAP prepared by Name: Christien Tran Position: Management agent representative Telephone numb...

Name of auditee: TELACU Housing-El Monte, Inc. HUD auditee identification number: 122-EE034-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended December 31, 2025 CAP prepared by Name: Christien Tran Position: Management agent representative Telephone number: 323-838-8556 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Statement of condition 2025-001: Management fees of $11,586 were prepaid at December 31, 2025. Recommendation: The Corporation should reduce management fees to the limits communicated by HUD going forward and the Agent should repay the amount prepaid at December 31, 2025. Actions Taken or Planned on the Finding: Management concurs with the finding. On June 17, 2026, HUD clarified its notification regarding Section 1(e) of the HUD approved Management Agent Certification (form HUD-9839-B). At that point, the Agent took prompt corrective action. The identified prepayment was returned to the Corporation in full on July 15, 2026.

View Audit 413329

Finding 1238456 (2025-001)

Material Weakness 2025

Telacu Housing-San Bernardino Ii,inc./telacu Monte Vista 143ee044wahnp

CA

Subrecipient Monitoring HUD Housing Programs

Name of auditee: TELACU Housing-San Bernardino II, Inc. HUD auditee identification number: 143-EE044-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended December 31, 2025 CAP prepared by Name: Christien Tran Position: Management agent representative Telep...

Name of auditee: TELACU Housing-San Bernardino II, Inc. HUD auditee identification number: 143-EE044-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended December 31, 2025 CAP prepared by Name: Christien Tran Position: Management agent representative Telephone number: 323-838-8556 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Statement of condition 2025-001: Management fees of $16,406 were prepaid at December 31, 2025. Recommendation: The Corporation should reduce management fees to the limits communicated by HUD going forward and the Agent should repay the amount prepaid at December 31, 2025. Actions Taken or Planned on the Finding: Management concurs with the finding. On June 17, 2026, HUD clarified its notification regarding Section 1(e) of the HUD approved Management Agent Certification (form HUD-9839-B). At that point, the Agent took prompt corrective action. The identified prepayment was returned to the Corporation in full on July 15, 2026.

View Audit 413328

Finding 1238454 (2025-001)

Material Weakness 2025

Telacu Housing-San Bernardino,inc.dba Telacu Sierra Vista143ee040wahnp

CA

Subrecipient Monitoring HUD Housing Programs

Name of auditee: TELACU Housing-San Bernardino, Inc. HUD auditee identification number: 143-EE040-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended December 31, 2025 CAP prepared by Name: Christien Tran Position: Management agent representative Telephon...

Name of auditee: TELACU Housing-San Bernardino, Inc. HUD auditee identification number: 143-EE040-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended December 31, 2025 CAP prepared by Name: Christien Tran Position: Management agent representative Telephone number: 323-838-8556 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Statement of condition 2025-001: Management fees of $12,391 were prepaid at December 31, 2025. Recommendation: The Corporation should reduce management fees to the limits communicated by HUD going forward and the Agent should repay the amount prepaid at December 31, 2025. Actions Taken or Planned on the Finding: Management concurs with the finding. On June 17, 2026, HUD clarified its notification regarding Section 1(e) of the HUD approved Management Agent Certification (form HUD-9839-B). At the point, the Agent took prompt corrective action. The identified prepayment was returned to the Corporation in full on July 15, 2026.

View Audit 413326

Finding 1238452 (2025-001)

Material Weakness 2025

Telacu Hsg-Baldwin Park , Inc. Dba Telacu Las Palomas 122ee126wahnp

CA

Subrecipient Monitoring HUD Housing Programs

Name of auditee: TELACU Housing-Baldwin Park, Inc. HUD auditee identification number: 122-EE126-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended December 31, 2025 CAP prepared by Name: Christien Tran Position: Management agent representative Telephone ...

Name of auditee: TELACU Housing-Baldwin Park, Inc. HUD auditee identification number: 122-EE126-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended December 31, 2025 CAP prepared by Name: Christien Tran Position: Management agent representative Telephone number: 323-838-8556 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Statement of condition 2025-001: Management fees of $12,112 were prepaid at December 31, 2025. Recommendation: The Corporation should reduce management fees to the limits communicated by HUD going forward and the Agent should repay the amount prepaid at December 31, 2025. Actions Taken or Planned on the Finding: Management concurs with the finding. On June 17, 2026, HUD clarified its notification regarding Section 1(e) of the HUD approved Management Agent Certification (form HUD-9839-B). At that point, the Agent took prompt corrective action. The identified prepayment was returned to the Corporation in full on July 15, 2026.

View Audit 413323

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 1238437 (2025-001)

Material Weakness 2025

Watts Healthcare Corporation

CA

Subrecipient Monitoring Reporting

Management concurs with the finding. Previous CFO submitted a SEFA based on revenue recognized without reconciling grant allowable expenses. To remediate the identified material weakness in financial reporting oversight, the CEO has initiated a restructuring of the fiscal leadership team. Effective ...

Management concurs with the finding. Previous CFO submitted a SEFA based on revenue recognized without reconciling grant allowable expenses. To remediate the identified material weakness in financial reporting oversight, the CEO has initiated a restructuring of the fiscal leadership team. Effective May 22, 2026, an interim CFO with extensive knowledge of healthcare accounting, GAAP and Uniform Guidance has been appointed. Corrective Action Plan: Senior accountants have been provided training on federal grant accounting procedures. Drawdowns are now performed after proper reconciliation of allowable expenses per grant budgets. 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 1238432 (2025-002)

Material Weakness 2025

Jackson County, Missouri

MO

Subrecipient Monitoring Procurement, Suspension & Debarment § 200.332

The County will download the sam.gov page for each subrecipient prior to issuing subawards for proof of verification.

View Audit 413296

Finding 1238428 (2025-001)

Material Weakness 2025

University Muslim Medical Association, INC

CA

Special Tests & Provisions Subrecipient Monitoring

Views of Responsible Officials and Planned Corrective Actions Management agrees with the findings and will implement the following actions to prevent future occurrences: • Immediate training for all front desk staff to ensure accurate application of the sliding fee process; • Continuous internal aud...

Views of Responsible Officials and Planned Corrective Actions Management agrees with the findings and will implement the following actions to prevent future occurrences: • Immediate training for all front desk staff to ensure accurate application of the sliding fee process; • Continuous internal audits to monitor compliance with the sliding fee discount program guidelines as stated in UMMA’s policies and procedures; and • Upon satisfactory completion of samples audited, UMMA will continue to provide quarterly training and periodic audits to ensure continued compliance. Responsible Officials Alejandra Murillo, Chief Financial Officer Expected Implementation Date December 31, 2025

View Audit 413294

Finding 1238419 (2025-001)

Material Weakness 2025

Island County

WA

Subrecipient Monitoring Internal Control / Segregation of Duties

County staff has previously reached out to the granting agency on how to resolve the quarterly Project and Expenditures reporting issue. Staff will review quarterly reporting to ensure the data accurately reflects the accounting records. The County is committed to obtaining the necessary training an...

County staff has previously reached out to the granting agency on how to resolve the quarterly Project and Expenditures reporting issue. Staff will review quarterly reporting to ensure the data accurately reflects the accounting records. The County is committed to obtaining the necessary training and resource materials for future ARPA reporting and subrecipient monitoring.

View Audit 413279

Finding 1238417 (2025-002)

Material Weakness 2025

City of Bothell

WA

Procurement, Suspension & Debarment Subrecipient Monitoring

The City places the utmost importance on safeguarding public funds and commits to improving internal controls over grant management. The City is committed to improving internal controls over complying with federal suspension and debarment requirements. The City commits to continuing training for sta...

The City places the utmost importance on safeguarding public funds and commits to improving internal controls over grant management. The City is committed to improving internal controls over complying with federal suspension and debarment requirements. The City commits to continuing training for staff with procurement and grant management duties. Finance will continue to highlight federal compliance requirements for staff. The Contracts and Procurement Officer will also create a new guidance and checklist document to help staff meet federal compliance requirements. Additionally, the City will update our contract templates to include language for contractors to certify they are not suspended or debarred from participation in federal programs. The City commits to improving internal controls and ensuring that federal funds are managed with the highest level of compliance and accountability. These changes will help the City meet federal compliance requirements and better safeguard use of public funds.

View Audit 413274

Finding 1238405 (2025-001)

Material Weakness 2025

Kittitas Reclamation District

WA

Cash Management Internal Control / Segregation of Duties Subrecipient Monitoring

The District acknowledges the auditor’s finding regarding the use of a cash advance during extreme and time sensitive circumstances. While cash advances are not part of the District’s normal financial practice, the situation required immediate action to ensure continuity of services funded by the fe...

The District acknowledges the auditor’s finding regarding the use of a cash advance during extreme and time sensitive circumstances. While cash advances are not part of the District’s normal financial practice, the situation required immediate action to ensure continuity of services funded by the federal granting agency. The District takes this recommendation very seriously. Throughout the period in which the cash advance remained unexpended, the District maintained complete documentation of all interest accrued, consistent with federal requirements. As soon as the auditors provided direction to remit interest exceeding the allowable $500 threshold, the District immediately issued a reimbursement check to the U.S. Department of Health and Human Services. This action was completed promptly to ensure full compliance with federal grant regulations. To prevent similar issues in the future, the District has formally adopted a written Cash Advance Policy. This policy establishes that cash advances are not standard procedure and may only be used under exceptional circumstances. It further requires monthly monitoring of any interest earned and mandates annual repayment of interest exceeding $500 to the granting agency. The policy ensures that any future need for a cash advance will be managed with clear controls, documented oversight, and strict adherence to federal guidelines. The District is committed to maintaining strong internal controls, complying with all federal grant requirements, and implementing corrective measures that strengthen financial stewardship moving forward.

View Audit 413271

Finding 1238380 (2025-001)

Material Weakness 2025

Elizabeth Seton Pediatric Center D/b/a Elizabeth Seton Children's Cent

NY

HUD Housing Programs Subrecipient Monitoring Reporting

1. Name of Contact person responsible for corrective action Carla Perruccio, Chief Financial Officer 300 Corporate Boulevard South Yonkers, NY 10701 (914) 294-6128 CPerruccio@setonchildrens.org 2. Corrective action planned Our organization will implement a documented checklist which will identify bo...

1. Name of Contact person responsible for corrective action Carla Perruccio, Chief Financial Officer 300 Corporate Boulevard South Yonkers, NY 10701 (914) 294-6128 CPerruccio@setonchildrens.org 2. Corrective action planned Our organization will implement a documented checklist which will identify both applicable filing deadlines—the earlier of 30 calendar days after receipt of the auditors’ reports or nine months after fiscal year-end—and will require management to document the calculated due date and submission confirmation. 3. Anticipated Completion Date This was completed in September 2026. 4. If the client does not agree with the findings or believes corrective action is not required, include an explanation and specific reasons. We agree with the finding reference # 2025-001

View Audit 413240

Finding 1238372 (2025-001)

Material Weakness 2025

American Indian Council on Alcoholism Inc.

WI

Procurement, Suspension & Debarment Subrecipient Monitoring Allowable Costs / Cost Principles § 200.302 § 200.305 § 200.317 § 200.327 § 200.332

Management agrees with the finding. Management will spend additional time reviewing CFR Part 200 for familiarization. Policy templates will also be reviewed, and assistance will again be requested to develop/finalize the necessary policies in accordance with Uniform Guidance. Policies will be review...

Management agrees with the finding. Management will spend additional time reviewing CFR Part 200 for familiarization. Policy templates will also be reviewed, and assistance will again be requested to develop/finalize the necessary policies in accordance with Uniform Guidance. Policies will be reviewed and approved by the Board regularly.

View Audit 413215

Finding 1238366 (2025-001)

Material Weakness 2025

Pennsylvannia Certified Organic

PA

Internal Control / Segregation of Duties Subrecipient Monitoring Material Weakness

Corrective Action Plan Steps & Status - Complete All planned remediation measures have been fully implemented, including strengthened authentication and access controls across ﬁnancial institutions, enhanced transaction monitoring, updated authorization policies, a reassessment of banking relationsh...

Corrective Action Plan Steps & Status - Complete All planned remediation measures have been fully implemented, including strengthened authentication and access controls across ﬁnancial institutions, enhanced transaction monitoring, updated authorization policies, a reassessment of banking relationships, and increased staff training and cyber insurance coverage. 1. Multi-factor Authentication for all ﬁnancial institutions and key business systems 2. Segregation of user controls for all ﬁnancial institutions 3. ACH/wire limit review of all ﬁnancial institutions 4. ACH and Positive Pay enabled for operating account 5. New Vendor / Vendor changes policy 6. Reassess Banking Institutions for security and alignment with PCO banking needs 7. Ongoing staff cyber security training 8. Increase Cyber insurance coverage

View Audit 413210

Corrective Action Plans

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