Corrective Action Plans

Finding 1191678 (2025-003)

Material Weakness 2025

M. Carter Plaza

OR

HUD Housing Programs Special Tests & Provisions Subrecipient Monitoring

Finding no.: 2025-003 Contact person(s) responsible: Kymberly Horner, Executive Director for PCRI and Matthew Wrigley, Accounting Financial and Audit Manager for Cascade Management Corrective action planned: The monthly deposits to the replacement reserve account have been reinstated after the lapse...

Finding no.: 2025-003 Contact person(s) responsible: Kymberly Horner, Executive Director for PCRI and Matthew Wrigley, Accounting Financial and Audit Manager for Cascade Management Corrective action planned: The monthly deposits to the replacement reserve account have been reinstated after the lapse which was due to a period of transition of management in the property management department. The funding processes have been reestablished and procedures are in place to ensure there are no unplanned lapses in funding the reserve going forward. Anticipated completion date: February 2026

View Audit 395527

Finding 1191676 (2025-001)

Material Weakness 2025

M. Carter Plaza

OR

Internal Control / Segregation of Duties Subrecipient Monitoring HUD Housing Programs § 200.512

Finding no.: 2025-001 Contact person(s) responsible: Kymberly Horner, Executive Director for PCRI and Matthew Wrigley, Accounting Financial and Audit Manager for Cascade Management Corrective action planned: The closing of books and preparation for audit procedures is being addressed via improvement...

Finding no.: 2025-001 Contact person(s) responsible: Kymberly Horner, Executive Director for PCRI and Matthew Wrigley, Accounting Financial and Audit Manager for Cascade Management Corrective action planned: The closing of books and preparation for audit procedures is being addressed via improvements in internal controls related to property accounting, month and year end closing procedures which include a new property management accounting software package. It is also being addressed via the hiring of more experienced staff during fiscal year 2024-2025. The organization anticipates that these improvements will allow for the audit to be completed within the required timeframe in the upcoming cycle. Anticipated completion date: October 2026

View Audit 395527

Finding 1191675 (2025-004)

Material Weakness 2025

Kalamazoo Valley Community College

MI

Student Financial Aid Subrecipient Monitoring Reporting

Condition: Of the 40 students selected for enrollment reporting, the College did not update the student enrollment information for 3 students accurately. Planned Corrective Action: The College will modify its process and update its documented procedures to include periodically running an Enrollment ...

Condition: Of the 40 students selected for enrollment reporting, the College did not update the student enrollment information for 3 students accurately. Planned Corrective Action: The College will modify its process and update its documented procedures to include periodically running an Enrollment Reporting Graduated/Withdrawn Report from NLSDS and review for accuracy and make timely corrections, if necessary. Contact person responsible for corrective action: Director of Financial Aid Anticipated Completion Date: June 30, 2026

View Audit 395523

Finding 1191673 (2025-003)

Material Weakness 2025

Kalamazoo Valley Community College

MI

Student Financial Aid Subrecipient Monitoring Reporting

Condition: The College did not have appropriate segregation of duties in place to ensure the reporting to COD is being reviewed by an individual separate from the process of preparing the reconciliations. Planned Corrective Action: The College will modify its process and update its documented proced...

Condition: The College did not have appropriate segregation of duties in place to ensure the reporting to COD is being reviewed by an individual separate from the process of preparing the reconciliations. Planned Corrective Action: The College will modify its process and update its documented procedures to include an appropriate review of the reconciliation by an individual separate from the process of preparing the reconciliations. Contact person responsible for corrective action: Director of Financial Aid Anticipated Completion Date: June 30, 2026

View Audit 395523

Finding 1191671 (2025-002)

Material Weakness 2025

Kalamazoo Valley Community College

MI

Student Financial Aid Subrecipient Monitoring Significant Deficiency

Condition: The College did not provide notifications to certain students related to direct loan disbursements. Planned Corrective Action: The Director of Financial Aid will work with our information technology department to ensure the criteria used for triggering the notification emails is correct a...

Condition: The College did not provide notifications to certain students related to direct loan disbursements. Planned Corrective Action: The Director of Financial Aid will work with our information technology department to ensure the criteria used for triggering the notification emails is correct and capturing all the necessary students. Additionally, an exception report will be created to identify students who have not been sent the notification email for the financial aid department to review and then send the appropriate notification. The department procedures will be updated to reflect these changes in process. Contact person responsible for corrective action: Director of Financial Aid Anticipated Completion Date: March 31, 2026

View Audit 395523

Finding 1191669 (2025-001)

Material Weakness 2025

Kalamazoo Valley Community College

MI

Student Financial Aid Subrecipient Monitoring Material Weakness

Condition: Out of 60 students tested for return to Title IV, we identified 4 students whose calculations were performed outside of the required time frame. Planned Corrective Action: The College will work with its Director of Financial Aid to ensure the semester end procedures include steps to ident...

Condition: Out of 60 students tested for return to Title IV, we identified 4 students whose calculations were performed outside of the required time frame. Planned Corrective Action: The College will work with its Director of Financial Aid to ensure the semester end procedures include steps to identify those students who unofficially withdrew. Once the students are identified, individuals with appropriate skills and knowledge will be able to determine if a return of Title IV calculation is necessary and appropriately return any funds, as necessary. Contact person responsible for corrective action: Director of Financial Aid Anticipated Completion Date: March 31, 2026

View Audit 395523

Finding 1191651 (2025-002)

Material Weakness 2025

Hawaii Pacific University

HI

Subrecipient Monitoring Student Financial Aid Reporting

The University has made substantial progress toward completing the remaining elements required under the Gramm-Leach-Bliley Act (GLBA) and aligning its program with the FTC Safeguards Rule. Full implementation timelines are primarily constrained by current staffing capacity within ITS/Cybersecurity ...

The University has made substantial progress toward completing the remaining elements required under the Gramm-Leach-Bliley Act (GLBA) and aligning its program with the FTC Safeguards Rule. Full implementation timelines are primarily constrained by current staffing capacity within ITS/Cybersecurity and Legal, as well as certain technical tool limitations (e.g., data discovery and validation). Despite these constraints, notable progress has been achieved across the required FTC Safeguards Program elements as summarized below: • Element 1 – Designate a Qualified Individual: Completed. Qualified individual appointed to implement and supervise the company’s information security program; reporting mechanisms to the Board established. Completion is confirmed based on oversight and execution of subsequent program elements. • Element 2 – Conduct a Risk Assessment: Completed. Initial risk assessment conducted to identify reasonably foreseeable threats; controls and priorities for Elements 3–9 is being guided by this assessment. • Element 3 – Access Controls & Data Classification: 70% complete. Policies finalized; multi- factor authentication (MFA) implemented; initial asset inventory completed. Data owner assignments and detailed access reviews are in progress. • Element 4 – Vulnerability Management: Complete. Latest penetration testing identified no critical findings. • Element 5 – Information Security Policies: Drafted and pending Legal review; Board acceptance scheduled for March 2026. • Element 6 – Third-Party Oversight: 70% complete. Policy and workflow developed; Board acceptance scheduled for March 2026. • Element 7 – Periodic Risk Assessments: 80% complete. Updated risk assessment currently in progress. • Element 8 – Incident Response Plan: 90% complete. Final reporting and approval scheduled for March 2026. • Element 9 – Qualified Individual & Board Reporting: 90% complete. Annual report scheduled for March 2026. • Red Flags Rule (Identity Theft Prevention): 50% complete. Policy drafted, complete comprehensive program, formal procedures and additional trainings still required. Next Steps: Remaining actions will be completed as Legal and Board approvals are obtained and staffing capacity allows. HPU will continue to develop and retain documentation supporting the completion and implementation of each safeguard element, as prescribed by GLBA. Periodic internal assessments of the Information Security Program will be scheduled following full implementation, with consideration given to engaging an independent third party for future reviews. Person(s) Responsible: Information Security Officer; Vice President of Operations and Chief Information Officer. Targeted Correction Date: March 31, 2026.

View Audit 395499

Finding 1191583 (2025-005)

Material Weakness 2025

Municipality of Catano

PR

Subrecipient Monitoring Reporting Significant Deficiency § 200.302 § 200.328 § 200.329

COMMONWEALTH OF PUERTO RICO MUNICIPALITY OF CATAÑO Corrective Action Plan For the Fiscal Year Ended June 30, 2025 _____________________________________________________________________________________________________________________ Audit Report: Reports on Compliance and Internal Control in Accordan...

COMMONWEALTH OF PUERTO RICO MUNICIPALITY OF CATAÑO Corrective Action Plan For the Fiscal Year Ended June 30, 2025 _____________________________________________________________________________________________________________________ Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and OMB Super Circular Uniform Guidance Audit Period: July 1, 2024 – June 30, 2025 Fiscal Year: 2024-2025 Principal Executive: Hon. Julio Alicea Vasallo, Mayor Contact Person: Mrs. Honoris Machado, Finance Director Phone: (787) 788-0404 Original Finding Number: 2025-005 Statement of Concurrence or Nonconcurrence: We concur we the finding. Corrective Action: Adopted Measures • Expense Synchronization: A protocol will be implemented requiring contracted consultants to record and report incurred expenses only when a validated disbursement voucher is available, thereby ensuring the integrity of the financial flow. • Reconciliation: The office will conduct a detailed comparison between the draft quarterly report and the general ledger to identify and correct any discrepancies prior to final submission. • Compliance Timeline: An internal deadline will be established for the submission of the report, ensuring attainment of the minimum percentage required under the Quality Activities category through accurate financial data. Expected Outcome To ensure that all financial information submitted is complete, accurate, and fully aligned with the Municipality’s accounting records, thereby eliminating the risk of audit findings. Implementation Date: March 2026. Responsible persons: • Person responsible for the implementation: Mr. Carlos Flores, Federal Program’s Subdirector • Person responsible for the supervision: Mrs. Yolanda Maldonado, Federal Program’s Director

View Audit 395450

Finding 1191581 (2025-003)

Material Weakness 2025

Municipality of Catano

PR

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting

COMMONWEALTH OF PUERTO RICO MUNICIPALITY OF CATAÑO Corrective Action Plan For the Fiscal Year Ended June 30, 2025 _____________________________________________________________________________________________________________________ Audit Report: Reports on Compliance and Internal Control in Accordan...

COMMONWEALTH OF PUERTO RICO MUNICIPALITY OF CATAÑO Corrective Action Plan For the Fiscal Year Ended June 30, 2025 _____________________________________________________________________________________________________________________ Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and OMB Super Circular Uniform Guidance Audit Period: July 1, 2024 – June 30, 2025 Fiscal Year: 2024-2025 Principal Executive: Hon. Julio Alicea Vasallo, Mayor Contact Person: Mrs. Honoris Machado, Finance Director Phone: (787) 788-0404 Original Finding Number: 2025-003 Statement of Concurrence or Nonconcurrence: We concur with the finding. Corrective Action: Corrective Action Implemented 1. Request for Technical Assistance Technical assistance was requested from the corresponding state agency and all municipal components involved in the process, with the purpose of: • Establishing a structured work plan. • Aligning compliance processes. • Clearly defining the documentation required for quarterly reports. • Reviewing the processes of the Fiscal Monitoring System Portal. • Incorporating technical recommendations issued by the agency. 2. Measures Adopted by This Office As a result of the technical assistance, the following corrective actions were implemented: • Development of a Required Documentation Checklist to standardize the collection of information. • Clear definition of the scope of collaborative work among offices. • Formal establishment of tasks, roles, and responsibilities. • Assignment and monitoring of the limited staff designated by the office. • Update of the Fiscal Monitoring System Portal to grant access to newly authorized personnel. Results Achieved As a result of the implementation of the corrective action plan: • The required information from the various municipal offices was collected completely and in a timely manner. • The quarterly report was submitted by the established deadline (01/15/2026). • The agency validated compliance (01/30/2026). • The disbursement of funds was successfully received (02/04/2026). Evidence of Effectiveness • Compliance with the established deadline. • Confirmation of receipt and approval of the report. • Disbursement processed without findings or additional requirements. • Strengthened interdepartmental coordination. • A documented and standardized process for future quarterly cycles. Standardization and Prevention • The Checklist was adopted as an official tool of the process. • The assignment of roles and responsibilities was formally established. • Access to the Fiscal Monitoring System Portal is kept up to date. • Continuous monitoring was established to ensure compliance in future quarters. Observation Regarding Human Resources Although the corrective action proved effective and allowed for the timely submission of the report and receipt of the disbursement, the personnel currently assigned to the process also support multiple additional programs. While the situation was corrected following internal reorganization, the shared operational workload could pose a risk to the long-term sustainability of the control. It is recommended that the allocation of additional human resources be evaluated to strengthen operational continuity and prevent recurrence of the previously identified issue. Conclusion and Closure The corrective action implemented proved to be effective and sustainable, eliminating the deficiencies identified in the process of collecting and submitting quarterly reports. Regulatory compliance and strengthened administrative management are evidenced, ensuring continuity in the timely receipt of future disbursements. Implementation Date: Fiscal Year 2025-2026. Responsible persons: • Person responsible for the implementation: Mr. Carlos Flores, Federal Program’s Subdirector • Person responsible for the supervision: Mrs. Yolanda Maldonado, Federal Program’s Director

View Audit 395450

Finding 1191580 (2025-002)

Material Weakness 2025

Municipality of Catano

PR

Subrecipient Monitoring Allowable Costs / Cost Principles Period of Performance § 200.1

COMMONWEALTH OF PUERTO RICO MUNICIPALITY OF CATAÑO Corrective Action Plan For the Fiscal Year Ended June 30, 2025 _____________________________________________________________________________________________________________________ Audit Report: Reports on Compliance and Internal Control in Accordan...

COMMONWEALTH OF PUERTO RICO MUNICIPALITY OF CATAÑO Corrective Action Plan For the Fiscal Year Ended June 30, 2025 _____________________________________________________________________________________________________________________ Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and OMB Super Circular Uniform Guidance Audit Period: July 1, 2024 – June 30, 2025 Fiscal Year: 2024-2025 Principal Executive: Hon. Julio Alicea Vasallo, Mayor Contact Person: Mrs. Honoris Machado, Finance Director Phone: (787) 788-0404 Original Finding Number 2025-002 Statement of Concurrence or Nonconcurrence: We concur with the finding. Corrective Action: Objective of the plan: The objective of this Corrective Action Plan is to address the observations identified in the audit and establish preventive measures to avoid future recurrences. Corrective Actions: 1. Schedule restructuring: • Create a detailed calendar with clear dates to define intermediate delivery deadlines to avoid delays (collection of information, analysis, writing, review, and submission) 2. Implementation of alerts and reminders: • Set up automatic alerts and email reminders for key dates (for example, 3 days before each deadline) 3. Review and Quality Control: Establish an internal review of reports before final submission to ensure that the information reported is accurate and complete. The revision includes compliance with the requirements established by the agency. Compliance Monitoring: • Biweekly meetings: The team will have biweekly meetings to have updates regarding the progress and achievement of the deadlines. • Email notifications: Emails will be sent to document the timely submission of reports and when needed, waivers will be requested explaining situations that may have delayed the process to prepare accurate and complete reports on time. Evaluation: • Monthly evaluations will be performed to measure the compliance of the submission of the reports on the timeframe established by the agency. • Adjustments to the processes according to the response of the team. Implementation Date: Fiscal Year 2025-2026. Responsible persons: • Person responsible for the implementation: Mr. Carlos Flores, Federal Program’s Subdirector • Person responsible for the supervision: Mrs. Yolanda Maldonado, Federal Program’s Director

View Audit 395450

Finding 1191566 (2025-002)

Material Weakness 2025

Tasc, Inc.

IL

Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management § 200.309

SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE AND OTHER MATTERS U.S. Department of Justice 2025-002 Department of Justice Second Chance Act Community-based Reentry Program – Assistance Listing No. 16.812 Recommendation: We recommend that TASC follow its established procedures for chargi...

SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE AND OTHER MATTERS U.S. Department of Justice 2025-002 Department of Justice Second Chance Act Community-based Reentry Program – Assistance Listing No. 16.812 Recommendation: We recommend that TASC follow its established procedures for charging allowable expenses to the grant during the period of performance. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will follow established procedure to make sure costs are recorded in the proper period. Management will review the procedure with all accounting staff. Name(s) of the contact person(s) responsible for corrective action: Roy Fesmire, CFO Planned completion date for corrective action plan: June 30, 2026

View Audit 395434

Finding 1191546 (2025-005)

Material Weakness 2025

Leech Lake Tribal College

AZ

Procurement, Suspension & Debarment Subrecipient Monitoring Material Weakness § 200.318 § 200.320

Management will follow procedures as outlined in its policies and procedures to ensure all stages of the process adequately conducted and documented.

View Audit 395432

Finding 1191530 (2025-009)

Material Weakness 2025

City of Montgomery, Alabama

AL

Subrecipient Monitoring Material Weakness Reporting § 200.303 § 200.328

Management concurs. The City will strengthen its policies and procedures over the grant reporting process to ensure that the review and approval of federal reports is documented. This will be implemented by September 2026.

View Audit 395426

Finding 1191528 (2025-011)

Material Weakness 2025

City of Montgomery, Alabama

AL

Allowable Costs / Cost Principles Subrecipient Monitoring Material Weakness

Management concurs. The City will strengthen its fiscal policies and procedures to ensure that all payroll claims against federal funding are properly documented and reviewed for accuracy. This will be implemented by September 2026.

View Audit 395426

Finding 1191503 (2025-003)

Material Weakness 2025

Western Illinois University

IL

Subrecipient Monitoring Cash Management Reporting § 200.303 § 200.305

Finding Number: 2025-003 - Inadequate Internal Control over Subrecipient Payments Condition: Western Illinois University (University) did not have adequate procedures in place to complete a timely disbursement of requested pass-through funds to subrecipients within the required time period. Planned ...

Finding Number: 2025-003 - Inadequate Internal Control over Subrecipient Payments Condition: Western Illinois University (University) did not have adequate procedures in place to complete a timely disbursement of requested pass-through funds to subrecipients within the required time period. Planned Corrective Action: The University is committed to developing a comprehensive plan to ensure compliance with payment of pass-through funds policies and procedures. Contact person responsible for corrective action: Mary Pat Wolhford Anticipated Completion Date: 06/30/2026

View Audit 395418

Finding 1191489 (2025-001)

Material Weakness 2025

City and County of Honolulu

HI

Subrecipient Monitoring Allowable Costs / Cost Principles

Finding No. 2025-001: Subrecipient Monitoring (Significant Deficiency – Federal Awards) Federal Award: 14.231 – Emergency Solutions Grant Program Audit Recommendation: We recommend that the City be diligent in following their policy and procedures to ensure timely reviews and compliance with the req...

Finding No. 2025-001: Subrecipient Monitoring (Significant Deficiency – Federal Awards) Federal Award: 14.231 – Emergency Solutions Grant Program Audit Recommendation: We recommend that the City be diligent in following their policy and procedures to ensure timely reviews and compliance with the requirement. Administration’s Comment: The City will follow review procedures diligently to ensure timely payments of subrecipients. Anticipated Completion Date: September 30, 2026 Contact Person(s): Edward "Ted" Hayden, Department of Community Services, Program Administrator

View Audit 395413

Finding 1191322 (2025-001)

Material Weakness 2025

Langston University

OK

Subrecipient Monitoring Cash Management Significant Deficiency § 200.303 § 200.305

Research and Development – Assistance Listing No. 10.215 Research and Development – Assistance Listing No. 93.433 Recommendation: We recommend that the University review and update policies and procedures to allow for more timely payment to subrecipients for work the University contracts them to per...

Research and Development – Assistance Listing No. 10.215 Research and Development – Assistance Listing No. 93.433 Recommendation: We recommend that the University review and update policies and procedures to allow for more timely payment to subrecipients for work the University contracts them to perform. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: This is a repeat finding that was first presented to the University in conjunction with the release of the 2023 audit report in May 2024. The 2023 audit was completed after substantially all of Fiscal Year 2024 had elapsed, so there was not adequate time for the University to fully implement corrective action. While these corrective measures were implemented during Fiscal Year 2025, they did not fully resolve the issue. The University continues to strengthen its accounts payable processes and sign-off approvals to help ensure reimbursements to subrecipients are paid timely. Additional updates to procedures for payment processing are also being developed. Methods for more accurate tracking of invoice receipt dates are being developed to ensure the 30-day period begins on the correct day. Principal investigators and designated administrative personnel within academic departments will be reminded of the need to initiate payments to subrecipients timely. Accounts payable training has been held for such personnel and will persist. Name(s) of the contact person(s) responsible for corrective action: Ms. Andrea Sherwood, Assistant Director, Grants and Contracts Financial Administration at Oklahoma State University and Ms. Nykkia Harris, Controller for Fiscal and Administrative Affairs Planned completion date for corrective action plan: May 2026

View Audit 395389

Finding 1191219 (2025-006)

Material Weakness 2025

Puerto Rico Highways and Transportation Authority

PR

Internal Control / Segregation of Duties Subrecipient Monitoring Cash Management

Finding Reference 2025-06 Corrective Action Plan: To strengthen internal controls, improve monitoring, and reduce delays in the certification and payment process, the Authority will implement the following operational improvements: The Authority is using the Finance Office Dashboard to track the sta...

Finding Reference 2025-06 Corrective Action Plan: To strengthen internal controls, improve monitoring, and reduce delays in the certification and payment process, the Authority will implement the following operational improvements: The Authority is using the Finance Office Dashboard to track the status of certifications and invoices in real time, identify bottlenecks in the approval process, and support proactive management of pending payments. A standardized Construction Certification Compliance Checklist will be used to validate all required federal compliance documentation before certifications are submitted to the Finance Office. This measure is expected to reduce the number of returned submissions and prevent delays during the billing review process. The Authority will develop a Help Desk platform for certification and invoice inquiries to formally manage, document, and track inquiries or claims related to Construction Certifications and Pre- Construction invoices, improving transparency and response times. The Authority will launch the ICMM Payment Tracking Table to consolidate and monitor the payment status of certifications and invoices. Additionally, the Authority is establishing intermediate milestones to progressively reduce the payment processing cycle, with the objective of moving from the current 40-day average toward the 30-day target. As part of this initiative, the Authority is expanding the use of the Project Management Information System (PMIS) to standardize and streamline the processing of construction certifications and payment documentation. Responsible: Mr. Angel M. Felix Cruz, Acting Director, Confidential Finance Office Planned Implementation Date: In process. The first operational improvement has been implemented. The remaining three measures are pending implementation. Expected to be completed on or before June 30, 2026.

View Audit 395336

Finding 1191218 (2025-005)

Material Weakness 2025

Puerto Rico Highways and Transportation Authority

PR

Subrecipient Monitoring Internal Control / Segregation of Duties Special Tests & Provisions

Finding Reference 2025-05 Corrective Action Plan: The Authority implemented the following actions in March 2026 to ensure compliance with the Davis-Bacon Act and strengthen payroll certification process: On March 11, 2026, all personnel of the Construction Office receive adequate training on Davis-B...

Finding Reference 2025-05 Corrective Action Plan: The Authority implemented the following actions in March 2026 to ensure compliance with the Davis-Bacon Act and strengthen payroll certification process: On March 11, 2026, all personnel of the Construction Office receive adequate training on Davis-Bacon Act requirements and payroll certification processes. On March 20, 2026, the Authority prepared a formal communication to reinforce the compliance with the Davis Bacon Act and to provide updated forms and instructions for completing certification payroll process. On March 3, 2026, the Authority contracted external consultants to enhance monitoring procedures over contractors and subcontractors, including timeliness tracking of properly certified payroll on a weekly basis and follow-up on missing or incomplete documentation Responsible: Mr. Emilio Garay, PE, Construction Office Director Planned Implementation Date: In process. Expected to be completed on or before June 30, 2026.

View Audit 395336

Finding 1191217 (2025-004)

Material Weakness 2025

Puerto Rico Highways and Transportation Authority

PR

Subrecipient Monitoring § 200.303 § 200.332

Finding Reference 2025-04 Corrective Action Plan: The Authority will implement the following plan to perform this sub recipient monitoring within the required threeyear cycle established in its State Management Plan: 1. Scheduled On-site Monitoring Visit Scheduled for June 1 O, 2026 The visit will i...

Finding Reference 2025-04 Corrective Action Plan: The Authority will implement the following plan to perform this sub recipient monitoring within the required threeyear cycle established in its State Management Plan: 1. Scheduled On-site Monitoring Visit Scheduled for June 1 O, 2026 The visit will include programmatic, financial, and compliance reviews in accordance with FTA requirements and 2 CFR 200 2. Pre-visit Desk Review A comprehensive desk review will be conducted prior to the visit, including financial reports, subrecipient agreements, audit reports, and prior monitoring documentation 3. Standardized Monitoring Procedures ' The Authority will use an Oversight Review Checklist to ensure consistency, compliance, and proper documentation. 4. Monitoring Report Issuance A monitoring letter will be issued within 30 days of the visit, detailing findings, concerns, and required corrective actions, if applicable. 5, Follow-up and Resolution The Subrecipient will be required to submit a CAP, if findings are identified. The Authority will conduct follow-up procedures until full resolution is achieved. Preventive Measures The Authority will implement the following measures to prevent recurrence of this finding: Establish and maintain a risk-based Oversight Visit Schedule Ensure inclusion of: Subrecipients receiving reimbursement-based funding Subrecipients identified as high-risk based on financial, operational, or compliance factors Strengthen internal controls to ensure adherence to monitoring cycles Maintain centralized and complete documentation of all monitoring activities Responsible: Ora. Norma L. Garcf a Lebron, Management Officer, Federal Coordination Office Luis F. Colon Morales, Director, Federal Coordination Office Planned Implementation Date: In process. Expected to be completed on or before July 31, 2026.

View Audit 395336

Finding 1191216 (2025-003)

Material Weakness 2025

Puerto Rico Highways and Transportation Authority

PR

Internal Control / Segregation of Duties Subrecipient Monitoring

Finding Reference 2025-03 Corrective Action Plan: The Authority has assigned an Analyst and a Supervisor the responsibility of monitoring compliance with all federal requirements related to the reporting process of these funds. In addition, an adequate training will be provided to the personnel invo...

Finding Reference 2025-03 Corrective Action Plan: The Authority has assigned an Analyst and a Supervisor the responsibility of monitoring compliance with all federal requirements related to the reporting process of these funds. In addition, an adequate training will be provided to the personnel involved in the administration of this program. The Authority has also implemented the following procedure to ensure accurate financial reporting and supervision: The Analyst will prepare the reports in accordance with the work plan and submit them to the Supervisor for review and approval. The Supervisor will review the reports and will send an email confirming the approval. Once approved, the Analyst will send the reports to the pass though entity. Responsible: Mrs. Johanna Perez Falcon, Acting Director of the Office of Budget Planned Implementation Date: Completed.

View Audit 395336

Finding 1191185 (2025-003)

Material Weakness 2025

Eastern Michigan University

MI

Subrecipient Monitoring Procurement, Suspension & Debarment § 200.332

Condition: The University could not provide evidence of conducting a formal risk assessment of subrecipients, nor was there documentation showing that the subrecipient’s SAM.gov registration was reviewed or it's most recent Single Audit report. Additionally, the University did not document ongoing m...

Condition: The University could not provide evidence of conducting a formal risk assessment of subrecipients, nor was there documentation showing that the subrecipient’s SAM.gov registration was reviewed or it's most recent Single Audit report. Additionally, the University did not document ongoing monitoring procedures or retain records. The University relied on information self-reported by the subrecipient without independently validating or documenting the required monitoring steps. Planned Corrective Action: At the subrecipient proposal development stage, the University currently requires subrecipients to certify in writing that they are not excluded or disqualified from receiving Federal Funds. However, to strengthen verification controls over subrecipient eligibility, the University Purchasing Department will add debarment reviews for subrecipients at the time a purchase requisition is initiated. Contact person responsible for corrective action: Joel Clendenin, Grants Manager Anticipated Completion Date: 6/30/2026

View Audit 395317

Finding 1191129 (2025-001)

Material Weakness 2025

Dekalb County Board of Education

GA

Allowable Costs / Cost Principles Subrecipient Monitoring Reporting § 200.303 § 200.403 § 200.430

Despite the high overall accuracy rate, the District is taking immediate steps to address identified compensation and documentation issues. We have corrected pay scale deficiencies to ensure employees receive proper compensation and implemented additional review controls to prevent future errors. We...

Despite the high overall accuracy rate, the District is taking immediate steps to address identified compensation and documentation issues. We have corrected pay scale deficiencies to ensure employees receive proper compensation and implemented additional review controls to prevent future errors. We have also strengthened our account coding procedures to ensure compensation charges are applied to the appropriate funding sources. Additionally, we have updated our digital time-tracking approval workflow to require contemporaneous authorization and improve documentation retention for all supplemental and retrospective compensation. Estimated Completion Date: March 31, 2026 Contact Person: Byron Schueneman, Chief Financial Officer

View Audit 395301

Finding 1191101 (2025-014)

Material Weakness 2025

State of Connecticut Drinking Water Fund - State Revolving Fund

CT

Special Tests & Provisions Subrecipient Monitoring Internal Control / Segregation of Duties

Recommendation: The Department of Public Health should strengthen internal controls to ensure compliance with federal Medicare and Medicaid survey requirements. Corrective Action Plan as Reported by the Department of Public Health: The Facility Licensing and Investigations Section (FLIS) continues t...

Recommendation: The Department of Public Health should strengthen internal controls to ensure compliance with federal Medicare and Medicaid survey requirements. Corrective Action Plan as Reported by the Department of Public Health: The Facility Licensing and Investigations Section (FLIS) continues to recruit and train surveyors to fill vacancies. DPH is working to ameliorate the backlog of recertification surveys before the end of FFY 2026, and the complaint project is continuing. The Department’s efforts are dependent on several staffing and training variables, including hiring, turnover, and other extenuating circumstances (e.g. the need to respond to emergent issues). Department of Public Health Anticipated Completion Date: September 30, 2026 Department of Public Health Contact Person: Jennifer Olsen-Armstrong, Section Chief, Facility Licensing and Investigation Section (860) 509-7520 Corrective Action Plan as Reported by the Department of Social Services: The Department agrees with this finding and the response provided by the Department of Public Health. Department of Social Services Anticipated Completion Date: December 31, 2026 Department of Social Services Contact Person: Nicole Godburn, Fiscal Administrative Manager 2 (860) 424-5393

View Audit 395257

Finding 1191090 (2025-350)

Material Weakness 2025

State of Connecticut Drinking Water Fund - State Revolving Fund

CT

Reporting Subrecipient Monitoring Matching / Level of Effort / Earmarking § 200.303

Recommendation: The Department of Emergency Services and Public Protection should strengthen internal controls and promptly report subawards in compliance with the Federal Funding Accountability and Transparency Act. Corrective Action Plan as Reported by the Department of Emergency Services and Publ...

Recommendation: The Department of Emergency Services and Public Protection should strengthen internal controls and promptly report subawards in compliance with the Federal Funding Accountability and Transparency Act. Corrective Action Plan as Reported by the Department of Emergency Services and Public Protection: DESPP does not agree with this finding. DESPP utilizes the federally designated FFATA reporting system (SAM.gov) for all FFATA reporting. This system does not possess the capability for any layered review or approval of information prior to upload or post submission. The system has no reporting mechanism to review information input into this system. Further, the system does not maintain capability to track the dates of changes and it records over upload dates at future submission timeframes. These issues have been repeatedly brought to the attention of both SAM.gov administrators at the federal level and DESPP’s FEMA funding agencies. In response to a similar finding by FEMA, DESPP provided the attached information, after which FEMA closed the DESPP finding. DESPP will continue to attempt to work with SAM.gov administrators to advocate for modifications to the FFATA reporting system to address these concerns, but is unable to address them unilaterally without federal agency intervention. Anticipated Completion Date: N/A Department of Emergency Services and Public Protection Contact Person: Kathleen Duffy, Fiscal Administrative Manager 2 kathleen.duffy@ct.gov Dana Conover, Emergency Management Program Supervisor dana.conover@ct.gov (860) 883-3904

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