Corrective Action Plans

Finding 1215698 (2025-001)

Material Weakness 2025

WA

School Nutrition Programs Subrecipient Monitoring Eligibility

The District reviewed the existing internal controls for compliance with federal eligibility requirements and have added additional management oversight of existing processes to improve completeness. In addition, the district will implement process improvements to increase transparency of record ret...

The District reviewed the existing internal controls for compliance with federal eligibility requirements and have added additional management oversight of existing processes to improve completeness. In addition, the district will implement process improvements to increase transparency of record retention.

View Audit 402354

Finding 1215686 (2025-002)

Material Weakness 2025

Renton School District No. 403

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Material Weakness

To address this issue and strengthen compliance controls, the District has implemented and will continue the following corrective actions: 1. Standardized Time-and-Effort Procedures The District has revised and standardized procedures for collecting, reviewing, and retaining time-and-effort document...

To address this issue and strengthen compliance controls, the District has implemented and will continue the following corrective actions: 1. Standardized Time-and-Effort Procedures The District has revised and standardized procedures for collecting, reviewing, and retaining time-and-effort documentation for all federally funded employees and substitutes charged to Title I and other federal programs. 2. Training and Guidance District staff responsible for payroll processing, federal program oversight, and school-level administration will receive annual training regarding federal time-andeffort requirements, including requirements for semiannual certifications, personnel activity reports, signature and date requirements, and retention expectations. 3. Centralized Monitoring and Review The District has updated its centralized review process to verify that all required timeand- effort documentation is completed accurately and retained timely before payroll expenditures are finalized and charged to federal programs. This review includes periodic monitoring by Business Services and Program staff. 4. Tracking and Documentation Controls The District is updating its tracking mechanisms, including standardized forms, submission deadlines, and periodic compliance checklists, to ensure required certifications are collected and retained for all applicable employees each reporting period. 5. Ongoing Compliance Monitoring District management will conduct periodic internal reviews of federally funded payroll documentation throughout the fiscal year to ensure continued compliance and to promptly address any deficiencies identified. The District expects these corrective actions to strengthen internal controls and ensure ongoing compliance with federal and OSPI requirements for time-and-effort documentation.

View Audit 402334

Finding 1215591 (2025-001)

Material Weakness 2025

Granite Falls School District No. 332

WA

Procurement, Suspension & Debarment School Nutrition Programs Subrecipient Monitoring

Going forward we have already put in place the following action items: • In order to maintain eligibility records in a location that is easy to locate, we will create a main, online depository to house all eligibility forms by year so that we can readily access proof of eligibility for all future au...

Going forward we have already put in place the following action items: • In order to maintain eligibility records in a location that is easy to locate, we will create a main, online depository to house all eligibility forms by year so that we can readily access proof of eligibility for all future audits. • In order to ensure that we don’t exceed federal procurement thresholds due to unforeseen increases in meal demand, we will be far more conservative in our meal forecasts and follow federal procurement guidelines any time we think we might get close to meeting threshold requirements. • In order to meet federal procurement requirements around receiving three bids for purchases, we will add an additional step to our procurement process that ensures we receive at least three formal bids or can document that we placed a formal request for bids in a regional publication such as the Seattle Journal of Commerce and did not receive three formal bids. We currently request bids from all vendors that service our area but we don’t always receive at least three formal bids back. This additional step will ensure that we made every effort to reach out to all possible vendors in the state even if they do not service our area.

View Audit 402278

Finding 1215561 (2025-004)

Material Weakness 2025

General John J Pershing Memorial Hospital Association

MO

Cash Management Procurement, Suspension & Debarment Subrecipient Monitoring § 200.305

Personnel Responsible for Corrective Action: Karla Clubine, Chief Executive Officer, David Cichocki, Chief Financial Officer Anticipated Completion Date: June 30, 2026 Views of Responsible Officials and Planned Corrective Action: Management accepts the recommendation. The Hospital will strengthen it...

Personnel Responsible for Corrective Action: Karla Clubine, Chief Executive Officer, David Cichocki, Chief Financial Officer Anticipated Completion Date: June 30, 2026 Views of Responsible Officials and Planned Corrective Action: Management accepts the recommendation. The Hospital will strengthen its federal grant cash management procedures and will perform and document cost verification prior to all federal grant drawdowns beginning in fiscal year 2026.

View Audit 402223

Finding 1215559 (2025-002)

Material Weakness 2025

General John J Pershing Memorial Hospital Association

MO

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.303 § 200.320

Personnel Responsible for Corrective Action: Karla Clubine, Chief Executive Officer, David Cichocki, Chief Financial Officer Anticipated Completion Date: June 30, 2026 Views of Responsible Officials and Planned Corrective Action: Management accepts the recommendation. It will modify and strengthen o...

Personnel Responsible for Corrective Action: Karla Clubine, Chief Executive Officer, David Cichocki, Chief Financial Officer Anticipated Completion Date: June 30, 2026 Views of Responsible Officials and Planned Corrective Action: Management accepts the recommendation. It will modify and strengthen our policy and procedure regarding the procurement process to reflect the alignment with federal regulations. The Hospital will begin performing and documenting suspension and debarment checks on all vendors/contracts funded with grants in fiscal year 2026.

View Audit 402223

Finding 1215545 (2025-001)

Material Weakness 2025

La Center School District

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Internal Control / Segregation of Duties

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE La Center School District No. 101 September 1, 2024 through August 31, 2025 This schedule presents the corrective action the District is planning to take for findings included in this report in accordance with Title 2 U.S. Code of F...

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE La Center School District No. 101 September 1, 2024 through August 31, 2025 This schedule presents the corrective action the District is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2025-001 Finding caption: The District did not have adequate internal controls and did not comply with time and effort requirements. Name, address, and telephone of District contact person: Gary McGarvie, Business Manager PO Box 1840 La Center, WA 98629 (360) 263-2131 Corrective action the auditee plans to take in response to the finding: (If the auditee does not concur with the finding, the auditee must list the reasons for disagreement). As a new Business Manager completing year-end processes for the first time, I mistakenly overlooked attaching the semi-annual Time & Effort certification forms to the timesheets for our classified staff. While the District did maintain completed timesheets for all staff throughout the year, the formal Time & Effort certification documentation was not completed as required for federal grant compliance. To correct this and prevent it from happening again, the District has since implemented a more structured process to ensure Time & Effort documents are properly completed. This includes attaching semi-annual certification forms directly to timesheets for classified staff and sending certification forms to certificated staff twice a year. This process will ensure that the dollars being spent from federal grants are being used accurately and in accordance with federal requirements. Anticipated date to complete the corrective action: This process has already been implemented and we should not have this issue happen moving forward.

View Audit 402209

Finding 1215538 (2025-002)

Material Weakness 2025

National Railroad Passenger Corporation

DC

Equipment & Real Property Management Subrecipient Monitoring § 200.303 § 200.313

Finding 2025-002: Equipment and Real Property Management The single audit report included the following recommendation: EY recommends Amtrak set up a system with certain criteria for identifying sites at a higher risk for noncompliance with safeguard requirements, and creates an action plan for eval...

Finding 2025-002: Equipment and Real Property Management The single audit report included the following recommendation: EY recommends Amtrak set up a system with certain criteria for identifying sites at a higher risk for noncompliance with safeguard requirements, and creates an action plan for evaluating, and remediating potential noncompliance. EY recommends that management consider redesigning one of its key controls to help ensure that the monitoring of the observations is occurring on a preventive basis to help identify any exposure to non-compliance before it occurs and clearly identifies any follow-up steps and actions. For example, there should be established a protocol as well as timeline for when required observations are to take place, additionally, as it is known in advance, which items are coming up for inventory, Amtrak could prepare an annual schedule of inventories, that could be revised quarterly. Management Response/Status of Action Plans: Amtrak acknowledges the recommendation that Amtrak should have a system with certain criteria for identifying sites at a higher risk for noncompliance with safeguard requirements and create an action plan for evaluating and remediating potential noncompliance. As part of this effort, the Enterprise Asset Management and Disposition Team will work with Corporate Security to review and, as appropriate, align existing governance processes to reduce the likelihood of similar noncompliance. Amtrak agrees with the recommendation to redesign key controls to help ensure that the monitoring of the observations happens on a preventive basis to help identify any exposure to non-compliance before it occurs. Amtrak published an updated Equipment Control Policy and created an eLearning course, as well as implemented several processes, technologies, and reporting that help to proactively monitor and identify equipment that is 90 days or less of needing an inventory. This has improved the compliance rate from less than 70% in FY22 to over 97% in FY25. Amtrak understands that this is a repeat finding and will review with Infrastructure Maintenance and Construction Services, the owner of equipment that was out of compliance to strengthen the practice and reduce the likelihood of noncompliance. The contact for this item is Robert Hoban, Director Asset Management. Amtrak anticipates fully remediating this finding by September 2028.

View Audit 402202

Finding 1215537 (2025-001)

Material Weakness 2025

National Railroad Passenger Corporation

DC

Subrecipient Monitoring Special Tests & Provisions § 200.302 § 200.303

Finding 2025-001: Review of Compliance Matrices and Narratives – Special Tests and Provisions The single audit report included the following recommendation: EY recommends that Amtrak update the control design with enough precision to ensure that reviews and updates to the compliance matrices are mad...

Finding 2025-001: Review of Compliance Matrices and Narratives – Special Tests and Provisions The single audit report included the following recommendation: EY recommends that Amtrak update the control design with enough precision to ensure that reviews and updates to the compliance matrices are made on a regular cadence to ensure that any updates, amendments or changes are monitored and updated timely. Management Response/Status of Action Plans: Amtrak recognizes the need to improve our controls over the updates of the compliance matrices and will review its control processes. The company specifically notes the need to update its compliance matrices in a regular cadence and after every amendment. Amtrak will develop a process document to create or update compliance matrices that will be used as a guide by compliance matrices preparers and reviewers when one is created or updated. The contact for this item is Lucia Butts, AVP Funding and Grants. Amtrak anticipates fully remediating this finding by September 2026.

View Audit 402202

Finding 1215496 (2025-001)

Material Weakness 2025

Colville School District No. 115

WA

Procurement, Suspension & Debarment School Nutrition Programs Subrecipient Monitoring

Finding caption: The District did not have adequate internal controls and did not comply with federal suspension and debarment requirements Name, address, and telephone of School District contact person: Heather Judd 217 S Hofstetter Colville, WA 99114 (509) 684-7856 Corrective action the auditee pl...

Finding caption: The District did not have adequate internal controls and did not comply with federal suspension and debarment requirements Name, address, and telephone of School District contact person: Heather Judd 217 S Hofstetter Colville, WA 99114 (509) 684-7856 Corrective action the auditee plans to take in response to the finding: (If the auditee does not concur with the finding, the auditee must list the reasons for disagreement). The District will strengthen internal controls over suspension and debarment compliance for Nutrition Services vendors. Effective immediately, all vendors expected to meet or exceed the $25,000 federal threshold will require documented suspension and debarment verification prior to contract execution or renewal. The Nutrition Services Director will be responsible for completing and maintaining documentation of the verification; however, the Business Office will implement an annual review each September 1 to ensure all required checks are completed, properly documented, and retained. Additionally, procedures will be updated to require submission of all debarment and suspension documentation to the Business Office for centralized recordkeeping, with periodic monitoring throughout the year to ensure compliance despite staff turnover. Anticipated date to complete the corrective action: 9/1/26

View Audit 402155

Finding 1215490 (2025-001)

Material Weakness 2025

Pasco School District No. 1

WA

Procurement, Suspension & Debarment School Nutrition Programs Internal Control / Segregation of Duties

Finding ref number: 2025-001 Finding caption: The District did not have adequate internal controls for ensuring compliance with federal procurement requirements. Name, address, and telephone of District contact person: Tom Hitt, Purchasing and Compliance Manager 1215 W. Lewis Street Pasco, WA 99301 ...

Finding ref number: 2025-001 Finding caption: The District did not have adequate internal controls for ensuring compliance with federal procurement requirements. Name, address, and telephone of District contact person: Tom Hitt, Purchasing and Compliance Manager 1215 W. Lewis Street Pasco, WA 99301 Phone: (509) 543-6700 Corrective action the auditee plans to take in response to the finding: Pasco School District concurs with the audit finding. The District has evaluated the circumstances surrounding this issue and determined that the root cause was a lack of specific procedural controls and staff training related to cooperative (“piggyback”) procurement requirements, particularly regarding vendor regional assignments under Department of Enterprise Services (DES) contracts. As noted in the audit, staff were not aware that contractors were assigned to specific geographic regions, which resulted in the selection of a vendor outside the District’s designated region. The District recognizes that the selected vendor in question was local to the District, and following the DES contract requires the District to instead order from a Spokane company, which is 2-3 hours away. The District places a strong emphasis on supporting local businesses as part of its commitment to the community, and this priority was a contributing factor in procurement decisions in this instance. However, the District recognizes that all procurement activities involving federal funds must strictly adhere to applicable federal, state, and contract requirements. Upon discovery of the issue during the audit process, Nutrition Services immediately initiated corrective action. The department transitioned to the appropriately assigned vendor, and within a short timeframe completed all necessary onboarding, ordering, and delivery processes. Procurement activities are now aligned with DES contract requirements. Additionally, while the District had been utilizing a vendor outside of the assigned DES contract region for these purchases, that vendor is an approved provider under the Office of Superintendent of Public Instruction’s Department of Defense (DoD) Fresh Produce Program. The District will continue to utilize that vendor when procuring produce through DoD-funded programs, where appropriate. To prevent recurrence, the District will implement the following corrective actions: 1. Staff Training and Capacity Building Provide training on federal procurement requirements and DES contracts Reinforce that local preference cannot override compliance requirements 2. Ongoing Monitoring and Internal Controls Conduct periodic internal reviews of procurement activity Perform documentation audits and provide corrective feedback 3. Coordination with DES and OSPI Guidance Require staff to reference DES and OSPI guidance when utilizing cooperative contracts Through these actions, the District will strengthen internal controls and ensure compliance with federal procurement requirements moving forward. Anticipated date to complete the corrective action: June 30, 2026

View Audit 402145

Finding 1215465 (2025-008)

Material Weakness 2025

Delta Research and Educational Foundation

DC

Subrecipient Monitoring Eligibility Reporting

Views of Responsible Officials: The Foundation will retroactively receive the FFATA reports for their sub-recipients, and going forward will ensure that the FFATA reports are received and submitted for all sub-recipients.

View Audit 402102

Finding 1215464 (2025-007)

Material Weakness 2025

Delta Research and Educational Foundation

DC

Subrecipient Monitoring § 200.331 § 200.332

Views of Responsible Officials: The Foundation will retroactively perform a risk assessment of all subrecipients for FY26. Going forward, a pre-award risk assessment will be performed prior to awarding a subrecipient and appropriate monitoring procedures over sub-recipients will be implemented.

View Audit 402102

Finding 1215411 (2025-001)

Material Weakness 2025

Baltimore Regional Housing Partnership, Inc.

MD

Reporting Subrecipient Monitoring HUD Housing Programs

Audit Finding Reference: 2025 - 001 Planned Corrective Action: BRHP continues weekly reporting of all 50058 actions to identify any files where the 60-day deadline is approaching. PIC uploads continue to occur weekly. Starting this year and going forward, if any files approach or exceed the 60-day s...

Audit Finding Reference: 2025 - 001 Planned Corrective Action: BRHP continues weekly reporting of all 50058 actions to identify any files where the 60-day deadline is approaching. PIC uploads continue to occur weekly. Starting this year and going forward, if any files approach or exceed the 60-day submission threshold, the effective date will be revised as necessary, and any associated costs will be absorbed by BRHP to ensure that clients are held harmless. Name of Contact Person: FaShaunDa Walton, Housing Mobility Director, fwalton@brhp.org Anticipated completion date: December 31, 2026

View Audit 402021

Finding 1215408 (2025-001)

Material Weakness 2025

YWCA of Glendale and Pasadena

CA

Subrecipient Monitoring Reporting Significant Deficiency § 200.329

Management concurs with the finding and will ensure that records are maintained to indicate timely submission of reports.

View Audit 401993

Finding 1215406 (2025-002)

Material Weakness 2025

Madison County, Nebraska

NE

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Corrective Action Planned: The County relies on the auditor to propose adjustments necessary to prepare the schedule of expenditures of federal and state awards include related note disclosures. The County reviews schedule of expenditures of federal awards and approves all adjustments. The County pl...

Corrective Action Planned: The County relies on the auditor to propose adjustments necessary to prepare the schedule of expenditures of federal and state awards include related note disclosures. The County reviews schedule of expenditures of federal awards and approves all adjustments. The County plans on adopting and implement a Federal Award Compliance Policy. Proposed Completion Date: July 1, 2026 Responsible Party: Anne M. Pruss, County Clerk

View Audit 401989

Finding 1215390 (2025-001)

Material Weakness 2025

Council of Spanish Speaking Organizations, Inc.

PA

Allowable Costs / Cost Principles Student Financial Aid Subrecipient Monitoring

Material Weakness in Internal Control over Compliance Condition: During our eligibility assessment, we examined 60 files from Community Umbrella Agency 3 (CUA) foster care children to ensure they contained required documents by the City of Philadelphia and Pennsylvania's Department of Human Services...

Material Weakness in Internal Control over Compliance Condition: During our eligibility assessment, we examined 60 files from Community Umbrella Agency 3 (CUA) foster care children to ensure they contained required documents by the City of Philadelphia and Pennsylvania's Department of Human Services (DHS). Our review found missing documents, time gaps between submissions, or untimely paperwork, including the following: (a) 43 CUA Safety Assessments, (b) 38 CUA Safety Plans, (c) 15 CUA PA Model Risk Assessments, (d) 8 CUA Documented Client Visits (Structure Case Notes), (e) 21 FAST Family Advocacy Forms, (f) 21 Life Skills Assessment/ Biopsychosocial Evaluation/ IEP or Ages & Stages Questionnaire (ASQ), (g) 15 School Aged Report Cards, (h) 23 CUA Authorization to Release Information, (i) 12 CUA Immunizations, (j) 22 DHS Court Order Sheets, (k) 11 Child’s Photo, (l) 9 Initial CUA Single Case Plan, (m) 11 6-Month Updates to CUA Single Case Plan, (n) 2 Initial CUA Case Service Conference Summary Report, and (o) 2 Six Month Ongoing CUA Services Conference Summary Report. Furthermore, each child's file needed to contain specific documents from the DHS, which had to be supplied by the department or shown evidence of request by the CUA. Missing documents consisted of: (a) 23 DHS Service Authorization Forms, (b) 25 DHS CUA Provider Referral Forms, and (c) 20 DHS CUA In-Home Services Referral Forms. Recommendation: We recommend that management continue to develop policies and procedures in order to properly include all pertinent documentation within each client file as required by the City of Philadelphia, Department of Human Services. In addition, we recommend that program leadership and/or quality control department performs periodic audits of the client files to ensure all required documentation is included. Explanation of Disagreement with Audit Finding There is no disagreement with the audit finding. Action taken in response to finding: 1. Hiring of Chief Compliance Officer to oversee Concilio Quality Assurance and Compliance process 2. Enhancement of the Quality Assurance Department to strengthen oversight, monitoring activities, and internal review processes across programmatic and administrative functions. 3. Implementation of monthly reviews of client files and supporting documentation to ensure accuracy, completeness, and compliance with contractual and funding requirements. 4. Provision of enhanced staff training focused on the review of audit findings, identification of control deficiencies, and timely implementation of corrective actions. Name of the contact person responsible for corrective action: Asif Mehmood, Chief Financial Officer asif.mehmood@elconcilio.net (215) 627-3100 Planned completion date for corrective action plan: June 30, 2026

View Audit 401940

Finding 1215382 (2025-002)

Material Weakness 2025

Prosser School District No. 116

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Internal Control / Segregation of Duties

The Prosser School District is in agreement with the finding. We have a new Director, a new fiscal specialist and controls in place to double check allowable expenses. These include following the accounting manual and double checking with the program director, if there is any question whether an exp...

The Prosser School District is in agreement with the finding. We have a new Director, a new fiscal specialist and controls in place to double check allowable expenses. These include following the accounting manual and double checking with the program director, if there is any question whether an expense is allowable or not. In the event that the program director is uncertain they will reach out to ESD123 for additional support.

View Audit 401938

Finding 1215381 (2025-001)

Material Weakness 2025

Summit Community Care Clinic, Inc.

CO

Internal Control / Segregation of Duties Subrecipient Monitoring Eligibility

Federal Program: Consolidated Health Centers Grant Assistance Listing No. 93.224 & 93.527 Recommendation: Our auditors recommended the Organization to review internal controls in regards to the determination, recording, and monitoring of the sliding fee process to ensure that appropriate sliding fee...

Federal Program: Consolidated Health Centers Grant Assistance Listing No. 93.224 & 93.527 Recommendation: Our auditors recommended the Organization to review internal controls in regards to the determination, recording, and monitoring of the sliding fee process to ensure that appropriate sliding fee rates/categories are utilized for each sliding fee encounter and that all documentation supporting the sliding discount provided is retained. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization identified challenges and errors in the prior eligibility workflow after the 2024 audit. Over the course of 2025, the Organization experienced turnover in management and front desk personnel in the dental department. The workflows were modified when the new eligibility manager joined the Organization. Upon hiring a new dental manager and patient access (front desk) manager, workflows and procedures were also modified to ensure the front desk reviews insurance coverage upon check in. The system is set up so the Organization does not need manually adjust all claims, so the claim was auto-posted for the visit identified above. Our corrective action plan is already established, although it was put into place after the date of service of the visit identified above. If the U.S. Department of Health and Human Services has questions regarding this plan, please call Amanda Craig, CFO, at 970-710-5062.

View Audit 401937

Finding 1215377 (2025-002)

Material Weakness 2025

Southampton Housing for the Elderly

MA

Subrecipient Monitoring Allowable Costs / Cost Principles Eligibility

Responsible Official Nichelle Brown, Senior Vice President of Property and Asset Management Plan Detail Management concurs with the audit finding related to untimely tenant recertifications and missing income documentation. Management reviewed the circumstances that contributed to the delayed comple...

Responsible Official Nichelle Brown, Senior Vice President of Property and Asset Management Plan Detail Management concurs with the audit finding related to untimely tenant recertifications and missing income documentation. Management reviewed the circumstances that contributed to the delayed completion of tenant recertifications and incomplete documentation and determined that existing internal monitoring procedures did not consistently ensure tenant recertifications were completed within required timeframes. To address these issues, management has implemented corrective actions designed to strengthen oversight and improve the timeliness and completeness of tenant recertifications. These actions include reinforcing internal tracking procedures for recertification due dates, enhancing supervisory review of tenant eligibility files, and providing additional training to staff responsible for tenant eligibility determinations and income verification. Management expects these corrective actions to be fully implemented and operating effectively for all tenant recertifications going forward, thereby improving compliance with federal award requirements and reducing the risk of future untimely tenant recertifications or missing documentation. Anticipated Completion Date The corrective action is in the process of being implemented and expected to be completed in fiscal year 2026.

View Audit 401931

Finding 1215376 (2025-001)

Material Weakness 2025

Southampton Housing for the Elderly

MA

Subrecipient Monitoring Eligibility Internal Control / Segregation of Duties

Responsible Official Nichelle Brown, Senior Vice President of Property and Asset Management Plan Detail Management concurs with the audit finding related to the inability to locate certain tenant files. Management acknowledges that one of the eight tenant files selected for audit testing was not ava...

Responsible Official Nichelle Brown, Senior Vice President of Property and Asset Management Plan Detail Management concurs with the audit finding related to the inability to locate certain tenant files. Management acknowledges that one of the eight tenant files selected for audit testing was not available and concurs with the disclosure that nine of the forty tenant files for the program could not currently be located. Management has evaluated the circumstances contributing to the missing files and determined that existing record retention and file management procedures did not sufficiently ensure that all tenant documentation was safeguarded and readily retrievable. Management recognizes that the absence of tenant files limits the ability to demonstrate compliance with federal award requirements and to support costs charged to the program. To address this issue, management has initiated corrective actions to strengthen document retention and file management controls. These actions include implementing enhanced tracking and reconciliation processes for tenant files, improving secure storage and retention practices, and reinforcing staff responsibilities for maintaining complete and accessible tenant records. Management also plans to conduct periodic internal reviews to confirm that tenant files are properly maintained and available for monitoring and audit purposes. Specifically we plan to: 1. All physical resident files are stored in locked cabinets or secured file rooms with access limited to authorized personnel, including Property Managers, Assistant Property Managers, Compliance Specialists, and designated corporate staff. 2. Access to records will be restricted based on job function and necessity 3. There will be a formal file transfer and chain-of-custody process with required signatures 4. File transfers between properties will be by locked file transport boxes marked as confidential. 5. Employees will be required to maintain direct control of files during transport. 6. All files will be maintained during required retention periods. Management believes that these corrective actions will improve compliance with record retention requirements and reduce the risk of missing documentation in the future. Anticipated Completion Date The corrective action is in the process of being implemented and expected to be completed in fiscal year 2026.

View Audit 401931

Finding 1215372 (2025-002)

Material Weakness 2025

Dima Vi INC

DE

Subrecipient Monitoring HUD Housing Programs

A. Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations 2. Finding 2025-002: Noncompliance with Replacement Reserve Deposit Requirements a. Comments on the Finding and Each Recommendation: We acknowledge that two required replacement reserve deposits totaling $1,000 we...

A. Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations 2. Finding 2025-002: Noncompliance with Replacement Reserve Deposit Requirements a. Comments on the Finding and Each Recommendation: We acknowledge that two required replacement reserve deposits totaling $1,000 were not made timely during the year. The delayed deposits were fully cured prior to report issuance, the replacement reserve account remained substantially funded throughout the period, and no financial loss, reserve deficiency, or misuse of restricted funds occurred. Management views this matter as a timing and monitoring issue rather than a deficiency in the overall reserve position. b. Action(s) Taken or Planned on the Finding: 1. Reserve Deposit Monitoring Procedures: We have implemented formal reserve deposit monitoring procedures to track required monthly replacement reserve contributions, identify timing variances or shortfalls on a timely basis, and ensure corrective follow-up when needed. Supporting documentation and reconciliation records are maintained for audit and compliance purposes. 2. Monthly Management Review: Replacement reserve activity, including required deposits, account balances, and related reconciliation activity, is reviewed monthly by finance management as part of the organization’s ongoing compliance oversight procedures. Evidence of supervisory review is retained as part of the monthly compliance documentation process.

View Audit 401918

Finding 1215371 (2025-001)

Material Weakness 2025

Dima Vi INC

DE

HUD Housing Programs Internal Control / Segregation of Duties Subrecipient Monitoring

A. Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations 1. Finding 2025-001: Lack of Formalized Compliance Monitoring and Documented Management Oversight a. Comments on the Finding and Each Recommendation: We acknowledge the condition identified and note that correctiv...

A. Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations 1. Finding 2025-001: Lack of Formalized Compliance Monitoring and Documented Management Oversight a. Comments on the Finding and Each Recommendation: We acknowledge the condition identified and note that corrective actions and compliance monitoring enhancements were implemented or initiated prior to report issuance. Historically, certain compliance oversight activities relied heavily on operational knowledge and informal review procedures that were not consistently documented. Following organizational restructuring and personnel transitions, management initiated a broader effort to formalize and strengthen internal compliance monitoring, supervisory review procedures, and documentation practices across our housing portfolio. b. Action(s) Taken or Planned on the Finding: 1. Monthly Compliance and Financial Oversight Meetings: We have implemented recurring monthly oversight meetings involving executive leadership, finance, and housing management personnel to review financial reporting, reserve activity, compliance requirements, tenant-related matters, and operational performance. Meeting documentation and evidence of supervisory review are maintained as part of our compliance monitoring procedures. 2. Expanded Finance and Compliance Oversight Structure: We have strengthened our internal oversight structure through the addition of a Chief Financial Officer with expanded oversight responsibilities for the housing entities and a Director of Housing and Compliance responsible for operational and regulatory compliance oversight. Responsibilities between accounting, compliance, and operational functions have been further segregated to strengthen internal controls and management review procedures. 3. Formalized Compliance Monitoring Procedures: We have implemented standardized compliance monitoring procedures, including monthly reserve deposit tracking, supervisory review checklists, documented financial statement review procedures, reconciliation monitoring, and periodic compliance checklists addressing key HUD program requirements. 4. Ongoing Monitoring and Documentation Retention: We will continue strengthening documentation retention procedures to ensure evidence of compliance monitoring, supervisory review, and reconciliation activities is consistently maintained and available for future audits and regulatory reviews.

View Audit 401918

Finding 1215369 (2025-009)

Material Weakness 2025

Humboldt County

NV

Subrecipient Monitoring

Grant responsibilities have been transferred under the supervision of the Comptroller and will enhance control procedures to monitor the activities of subrecipients to ensure and document that the subaward was used for authorized purposes. Please note, that this was not deemed to be a questioned cos...

Grant responsibilities have been transferred under the supervision of the Comptroller and will enhance control procedures to monitor the activities of subrecipients to ensure and document that the subaward was used for authorized purposes. Please note, that this was not deemed to be a questioned cost as no instances of material non-compliance were noted during the testing of subrecipients grant activities.

View Audit 401913

Finding 1215210 (2025-001)

Material Weakness 2025

Village at Amherst

TX

Subrecipient Monitoring HUD Housing Programs Reporting § 200.512

Comments on the Finding and Each Recommendation The auditee did not submit the Single Audit reporting package and data collection form to the Federal Audit Clearinghouse within the required timeframe. We recommend that the auditee implement procedures to monitor reporting deadlines and ensure timely...

Comments on the Finding and Each Recommendation The auditee did not submit the Single Audit reporting package and data collection form to the Federal Audit Clearinghouse within the required timeframe. We recommend that the auditee implement procedures to monitor reporting deadlines and ensure timely submission of the Single Audit reporting package to the FAC. Reporting Views of Responsible Officials Management acknowledges the late submission and has implemented procedures to assign responsibility for FAC submission and track required deadlines. Management believes these actions will prevent recurrence. Auditee concurs with this finding. Auditee agrees with auditor recommendations. Completion Date or Proposed Completion Date: May 31, 2026 by Rebecca Copeland, Controller - Property Accounts Action(s) Taken or Planned on the Finding The electronic submissions will be entered into the online FAC system.

View Audit 401876

Finding 1215171 (2025-001)

Material Weakness 2025

Cheney School District No. 360

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Eligibility

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Cheney School District No. 360 September 1, 2024 through August 31, 2025 This schedule presents the corrective action planned by the District for findings reported in this report in accordance with Title 2 U.S. Code of Federal Regul...

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Cheney School District No. 360 September 1, 2024 through August 31, 2025 This schedule presents the corrective action planned by the District for findings reported in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2025-001 Finding caption: The District did not have adequate internal controls and did not comply with federal Title I assessment system security and eligibility requirements.Name, address, and telephone of District contact person: Jamie Reed, Director of Finance and Operations 12414 S. Andrus Road (509) 559-4501 Corrective action the auditee plans to take in response to the finding: Assessment system security: Assessment Administration Procedures have been reviewed for the 2025-2026 school year by Building Assessment Coordinators (BAC). They will ensure a Test Security Building Plan (TSBP) will be provided for the WIDA assessment administered in their building this school year. BAC Assessment Google folders for 2026-2027 school year are currently being adjusted to provide additional organization to ensure all required documents are completed by BAC's then submitted to the District Assessment Coordinator (DAC) upon completion of the assessment window. Eligibility: The District has already begun corrective actions to address these concerns. District staff have reviewed federal Title I ranking and allocation requirements, including OSPI guidance related to poverty ranking methodology and the 75 percent rule. The District will implement additional review procedures during the annual Title I application and budgeting process to verify poverty calculations, school rankings, and allocation methodologies prior to submission. The District will also document comparability and supplemental funding determinations for any qualifying schools not directly served with Title I funds. Additionally, the District will provide targeted training for staff responsible for federal program administration and budgeting to ensure ongoing compliance with federal and OSPI Title I requirements. Anticipated date to complete the corrective action: Corrective review for the end of the 25-26 school year and full corrective action for the 26-27 school year.

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Corrective Action Plans

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