Corrective Action Plans

Finding 1208240 (2025-002)

Material Weakness 2025

Town of Preston

CT

Procurement, Suspension & Debarment Subrecipient Monitoring

Finding 2025-002 – Significant Deficiency in internal control over major programs Description of Finding: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, (Uniform Guidance) requires compliance with provisions of procurement, suspension,...

Finding 2025-002 – Significant Deficiency in internal control over major programs Description of Finding: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, (Uniform Guidance) requires compliance with provisions of procurement, suspension, and debarment. Non-federal entities are required to ensure that they do not award contracts or make subawards to any parties that are suspended or debarred from receiving federal funds. This verification may be accomplished by checking the System for Award Management (SAM). 2 The Town did not have a process in place to check that vendors were not suspended or debarred by checking the System for Award Management (SAM) prior to entering into contracts. Statement of Concurrence or Nonconcurrence: The Town agrees with the audit finding. Corrective Action: The Town became aware of this policy during the fiscal year 2024 audit process. This process has been remedied. Name of Contact Person: Cynthia Varricchio, MBA, Director of Finance and School Business Operations. Projected Completion Date: June 30, 2026.

View Audit 399212

Finding 1208236 (2025-001)

Material Weakness 2025

Kittitas County Health Network

WA

Subrecipient Monitoring § 200.332

2025-001 Subrecipient Monitoring Corrective action planned: Management will develop and implement written subrecipient monitoring policies and procedures. These procedures define required monitoring activities, including subrecipient risk assessments, financial and programmatic report reviews, audit...

2025-001 Subrecipient Monitoring Corrective action planned: Management will develop and implement written subrecipient monitoring policies and procedures. These procedures define required monitoring activities, including subrecipient risk assessments, financial and programmatic report reviews, audit review requirements, and follow-up on identified issues. Management will implement a standardized annual risk assessment process for all subrecipients. Risk assessments are completed prior to issuing new subawards and annually for ongoing subawards to determine the appropriate level of monitoring. Management will implement standardized monitoring tools, including financial and programmatic review checklists and site visit templates when applicable. Monitoring activities are now performed based on subrecipient risk level and documented in accordance with established procedures. Anticipated completion date: June 2026 Contact person responsible for corrective action: Mitchell Rhodes, Executive Director

View Audit 399183

Finding 1208198 (2025-001)

Material Weakness 2025

Texarkana Arkansas School District

AR

Cash Management Subrecipient Monitoring § 200.305

The District has implemented an internal control process that requires the review and approval of detailed expenditure reports and G5 drawdown amounts prior to submission. The review process includes the Director of the Magnet Program, Finance Coordinator, Executive Director of School Leadership, an...

The District has implemented an internal control process that requires the review and approval of detailed expenditure reports and G5 drawdown amounts prior to submission. The review process includes the Director of the Magnet Program, Finance Coordinator, Executive Director of School Leadership, and the Business Manager to ensure accuracy, compliance, and proper authorization before completion.

View Audit 399080

Finding 1208183 (2025-007)

Material Weakness 2025

Town of St. Francisville

LA

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.214 § 200.318 § 200.327

The Town acknowledges the lack of written policy and procedures for expending federal funds and insuring vendors are not debarred, suspended, or ineligible to receive federal funds. The Town shall (1) Update its written procurement policies and procedures to require verification of vendor eligibilit...

The Town acknowledges the lack of written policy and procedures for expending federal funds and insuring vendors are not debarred, suspended, or ineligible to receive federal funds. The Town shall (1) Update its written procurement policies and procedures to require verification of vendor eligibility through SAM.gov prior to awarding any contract or issuing any purchase order funded with federal awards. (2) Require procurement staff to retain documentation of the suspension and debarment verification. (e.g., dated SAM.gov search results or vendor certifications). (3) Provide training to relevant personnel on federal procurement requirements including suspension and debarment compliance under 2 CFP Part 200.

View Audit 399042

Finding 1208170 (2025-006)

Material Weakness 2025

Stillwater County

MT

Subrecipient Monitoring Special Tests & Provisions Cash Management

FINDING 2025-006: FEMA Grants Response: The county finance office has implemented a project number for each grant received and follows other projects according to this numbering schedule. At the time of the initial FEMA grant operations there was not a Finance Officer in place, and all expenditure w...

FINDING 2025-006: FEMA Grants Response: The county finance office has implemented a project number for each grant received and follows other projects according to this numbering schedule. At the time of the initial FEMA grant operations there was not a Finance Officer in place, and all expenditure went into one Fund without description as to what expenditure they were covering. The FEMA grants for events in 2022 and 2023 are near close out with FEMA and the State, all revenue from these grants has been redeemed.

View Audit 399021

Finding 1207138 (2025-002)

Material Weakness 2025

Sacred Heart Rehabilitation Center, INC

MI

Subrecipient Monitoring Eligibility

Although the updated MDHHS form 5522 has the same information as the outdated form, MDHHS was contacted to ensure Sacred Heart is on the state listserv to receive all MDHHS email updates and the program leader will contact the Contract Monitor prior to the start of the new contract year and search t...

Although the updated MDHHS form 5522 has the same information as the outdated form, MDHHS was contacted to ensure Sacred Heart is on the state listserv to receive all MDHHS email updates and the program leader will contact the Contract Monitor prior to the start of the new contract year and search the website periodically to ensure there are no updates to forms. All updated forms will be distributed to case managers.

View Audit 398994

Finding 1207133 (2025-003)

Material Weakness 2025

City of Columbus, Ohio

OH

Subrecipient Monitoring § 200.332

Finding Number: 2025-003 Planned Corrective Action: The City’s Department of Finance and Management concurs with the finding in the State and Local Fiscal Recovery Fund and will take the following actions in response: • Subrecipient monitoring will be performed by contracted CPA consultant for the o...

Finding Number: 2025-003 Planned Corrective Action: The City’s Department of Finance and Management concurs with the finding in the State and Local Fiscal Recovery Fund and will take the following actions in response: • Subrecipient monitoring will be performed by contracted CPA consultant for the one subrecipient (Heart of JOB) who showed no evidence of review of financial reports, site visits, and other oversight activity during the audit period. • Reissue written procurement policies and procedures to incorporate the aforementioned expectation and requirement; and • Although not anticipated due to the expiration of the SLFRF funding, procedures are established for any potential monitoring. Anticipated Completion Date: 11/30/2026 Responsible Contact Persons: Adam Robins, Deputy Director, Finance and Management Kali Harris, Federal Grants Coordinator

View Audit 398969

Finding 1207129 (2025-001)

Material Weakness 2025

City of Columbus, Ohio

OH

Subrecipient Monitoring

Finding Number: 2025-001 Planned Corrective Action: The City concurs with the finding and will take the following action in response: • The Department of Finance and Management, Grants Management section, will work with the Department of Development for collection and submission of HOPWA Subrecipien...

Finding Number: 2025-001 Planned Corrective Action: The City concurs with the finding and will take the following action in response: • The Department of Finance and Management, Grants Management section, will work with the Department of Development for collection and submission of HOPWA Subrecipient information for FFATA FSRS reporting that have not been reported in SAM.gov. • Columbus Public Health (Ryan White) promptly addressed this matter and implemented corrective actions to ensure full compliance with applicable requirements. In accordance with the subaward reporting provisions of the Federal Funding Accountability and Transparency Act (FFATA), the agency has revised its vendor determination form—utilized for all contractual agreements—to incorporate the required reporting criteria. All subawards exceeding $30,000 under UT833926 have been reported in SAM.gov. Data will be entered into the corporate system no later than the month following the execution of the contract. Going forward, all qualifying subawards will be entered into SAM.gov by the Fiscal Analyst in a timely manner, and the Fiscal Manager will perform an annual review to verify compliance with FFATA reporting requirements. Anticipated Completion Date: 6/30/2026 Responsible Contact Persons: Adam Robins, Deputy Director, Finance and Management Lucie McMahon, Grants Management Coordinator, Department of Housing and Urban Development Erin Prosser, Deputy Director, Department of Development Alex Cofield, Development Program Coordinator/Compliance & Special Projects Anticipated Completion Date: 3/24/2026 Responsible Contact Persons: Anita Clark, Assistant Health Commissioner, Columbus Public Health Katie Pettiford, Fiscal Manager

View Audit 398969

Finding 1207122 (2025-006)

Material Weakness 2025

Livingston School District No. 4 & 1

MT

Subrecipient Monitoring Student Financial Aid Cash Management

FINDING 2025-006: Program Income Response: This repeat finding is related to the Districts LINKS afterschool program supported by 21st Century funding. The Office of Public Instruction (OPI) performed monitoring of Livingston schools 21st Century program in August of 2024 and determined the District...

FINDING 2025-006: Program Income Response: This repeat finding is related to the Districts LINKS afterschool program supported by 21st Century funding. The Office of Public Instruction (OPI) performed monitoring of Livingston schools 21st Century program in August of 2024 and determined the District was not in compliance with changes to federal regulations made in 2018. The District has made all recommended changes from OPI and is now in compliance with federal regulations.

View Audit 398964

Finding 1207121 (2025-005)

Material Weakness 2025

Livingston School District No. 4 & 1

MT

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

FINDING 2025-005: Private/Home School Communications Response: This issue was an oversight as we transitioned Curriculum Directors. Communications to private/home school students have been completed in FY26 and we will monitor compliance requirements for federal grants in the future to prevent this ...

FINDING 2025-005: Private/Home School Communications Response: This issue was an oversight as we transitioned Curriculum Directors. Communications to private/home school students have been completed in FY26 and we will monitor compliance requirements for federal grants in the future to prevent this from occurring again.

View Audit 398964

Finding 1207117 (2025-001)

Material Weakness 2025

The Pelham II Corporation

MA

HUD Housing Programs Internal Control / Segregation of Duties Procurement, Suspension & Debarment § 200.512

A. Current Findings on the Schedule of Findings, Questioned Costs and Recommendations 1. Finding 2025-001 a. Comments on Finding and Each Recommendation Management agrees with the finding and the transition of responsibilities to the new President has been further identified and understood since ste...

A. Current Findings on the Schedule of Findings, Questioned Costs and Recommendations 1. Finding 2025-001 a. Comments on Finding and Each Recommendation Management agrees with the finding and the transition of responsibilities to the new President has been further identified and understood since stepping into the role in November 2024. b. Action(s) Taken or Planned on the Finding Identification and understanding of the reporting deadlines, along with the necessary access to facilitate the transmission of data. Going forward the Data Collection Form will be prepared by the management company and reviewed and approved by the President of the Pelham Corporation prior to submission. This action has been completed during 2025. This will allow the timely submission going forward B. Status of Corrective Actions on Findings Reported in the Prior Audit Schedule of Findings, Questions Costs and Recommendations There were no open findings on the prior audit report.

View Audit 398940

Finding 1207114 (2025-004)

Material Weakness 2025

Dolton School District 149

IL

Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management § 200.303

Condition: On May 15, 2025, ISBE communicated to the District that ARP ESSER recipients had until May 24, 2025 to liquidate obligations and that the District needed to submit its expenditure report to ISBE by May 21, 2025 for ISBE to process and submit to the U.S. Department of Education by the new ...

Condition: On May 15, 2025, ISBE communicated to the District that ARP ESSER recipients had until May 24, 2025 to liquidate obligations and that the District needed to submit its expenditure report to ISBE by May 21, 2025 for ISBE to process and submit to the U.S. Department of Education by the new deadline. On May 21, 2025, the District submitted a claim for reimbursement of expenditures totaling $4,343,814. The expenditures comprising this claim by date incurred and liquidated were as follows: $1,668,710 incurred through May 21, 2025 and liquidated as of that date $31,692 incurred through May 21, 2025 but not liquidated as of that date $325,805 incurred from May 21, 2025 through June 30, 2025 and liquidated as of June 30, 2025 $531,321 incurred from May 21, 2025 through June 30, 2025 but not liquidated as of June 30, 2025 $1,786,286 incurred after June 30, 2025 At May 21, 2025 and June 30, 2025, expenditures totaling $2,675,104 and 2,349,299, respectively, out of the $4,343,814 claimed for reimbursement were not incurred, not liquidated or both and, therefore, did not qualify for reimbursement based on the Federal statutes, regulations and the terms and conditions of the Federal award in effect at those dates. Corrective Action Plan: Management will review its policies and procedures and implement changes to strengthen internal control over compliance. Responsible Person: Dr. Maureen M. White, Superintendent Anticipated Completion Date: June 30, 2026

View Audit 398922

Finding 1207113 (2025-001)

Material Weakness 2025

Wesley Jackson Highlands, Inc. 081-Ee022

TN

Subrecipient Monitoring HUD Housing Programs

Finding #2025-001: Comments on the Finding and Each Recommendation: During the year ended December 31, 2025, the Corporation did not make the HUD required total amount of deposits to the reserve for replacements. Management should transfer $19,826 from the operating account to the reserve for replac...

Finding #2025-001: Comments on the Finding and Each Recommendation: During the year ended December 31, 2025, the Corporation did not make the HUD required total amount of deposits to the reserve for replacements. Management should transfer $19,826 from the operating account to the reserve for replacements account. Action(s) taken or planned on the finding: Management concurs with the finding and recommendation. On February 3, 2026, management transferred $20,258 from the operating account to the reserve for replacements. 35

View Audit 398917

Finding 1206882 (2025-002)

Material Weakness 2025

Southeastern Oklahoma State University

OK

Subrecipient Monitoring Cash Management Internal Control / Segregation of Duties § 200.305

Management acknowledges the finding related to cash management requirements and the timing of federal fund draws and disbursements. While the University maintains a robust, multi-layered review process, enhancements are necessary to ensure full alignment with federal requirements regarding the minim...

Management acknowledges the finding related to cash management requirements and the timing of federal fund draws and disbursements. While the University maintains a robust, multi-layered review process, enhancements are necessary to ensure full alignment with federal requirements regarding the minimization of time between the receipt and disbursement of funds. The University currently utilizes several internal controls, including: • A two-person pre-draw validation process to ensure draws align with liquidated expenses • Programmatic oversight through detailed fiscal year draw reports and reconciliation to G5 activity • Periodic fiscal year and program year reviews to identify and correct discrepancies These controls enabled the University to identify and correct the instances noted in the audit. However, management recognizes that refinements are needed to further align the timing of draws with actual cash disbursement activity. To address this, the University will implement the following corrective actions: 1. Refinement of Draw Timing – Draw requests will be more closely aligned with immediate cash needs and anticipated disbursement activity. 2. Enhanced Pre-Draw Reconciliation – In addition to existing controls, a real-time reconciliation of outstanding obligations and pending disbursements will be required prior to each draw to ensure alignment with cash needs. 3. Standardized Draw Calendar Adjustments – The University will evaluate and adjust its draw schedule, where necessary, to better align with actual disbursement cycles, including payroll and purchase card activity. 4. Formalized Monitoring and Documentation – Documentation will be maintained to support the relationship between drawdowns and disbursements, and periodic internal reviews will be conducted to ensure ongoing compliance. 5. Training and Communication – Additional guidance will be provided to program and fiscal staff regarding federal cash management requirements and expectations for timing of draws. Management believes these enhancements, in combination with existing internal controls, will ensure compliance with federal cash management requirements and prevent recurrence of this issue. Implementation Date: July 1, 2025 Responsible Party: James Altman (Director of Finance) in coordination with Darla Ellett (Trio Director) and Teriki Barnes (Trio Director)

View Audit 398877

Finding 1206872 (2025-001)

Material Weakness 2025

Southeastern Oklahoma State University

OK

Special Tests & Provisions Student Financial Aid Subrecipient Monitoring

Management acknowledges the finding related to Return of Title IV (R2T4) calculations and the timeliness of returns. The University recognizes the importance of accurate calculations and timely processing in compliance with federal regulations. The errors identified were primarily related to inaccur...

Management acknowledges the finding related to Return of Title IV (R2T4) calculations and the timeliness of returns. The University recognizes the importance of accurate calculations and timely processing in compliance with federal regulations. The errors identified were primarily related to inaccuracies in determining the total number of days in the payment period and ensuring the correct data elements were consistently applied within the student information system. While corrective actions were implemented following the prior audit, management has determined that additional controls and validation procedures are necessary to ensure consistent accuracy. To address this issue, the University has implemented and will continue to implement the following corrective actions: 1. System Configuration Review and Validation – The student information system configuration for R2T4 calculations has been reviewed and updated to ensure that academic calendars, including term dates and scheduled breaks, are accurately reflected. These configurations will be validated prior to the start of each term. 2. Enhanced Calculation Review Process – A secondary review of a sample of R2T4 calculations will be performed to verify the accuracy of key inputs, including days attended, total days in the term, and applicable aid types. 3. Standardized Procedures and Checklists – The University has developed standardized procedures to ensure consistent application of federal requirements, including proper ordering of funds and treatment of post-withdrawal disbursements. 4. Timeliness Monitoring – Processes have been enhanced to track and monitor the timing of R2T4 calculations and returns to ensure compliance with required deadlines. 5. Training and Staff Development – Financial aid staff have received additional training on R2T4 requirements, with a focus on calculation components, system inputs, and regulatory updates. 6. Ongoing Quality Assurance Reviews – Periodic internal reviews will be conducted to assess compliance and identify any discrepancies for prompt correction. Management believes these enhanced controls and monitoring procedures will address the root causes of the finding and prevent recurrence. Implementation Date: July 1, 2025 Responsible Party: Chrissie Isenberg (Director of Financial Aid)

View Audit 398877

Finding 1206866 (2025-003)

Material Weakness 2025

Alpine Achievers Initative

CO

Reporting Subrecipient Monitoring Period of Performance

Finding 2025-003: Late Submission of the Period Expense Report (PERs) Audit Finding: Alpine Achievers Initiative is required to submit Period Expense Reports (PERs) by the 10th of each month. PERs submitted later than 30 days after the performance period end date may result in denial of payment. In ...

Finding 2025-003: Late Submission of the Period Expense Report (PERs) Audit Finding: Alpine Achievers Initiative is required to submit Period Expense Reports (PERs) by the 10th of each month. PERs submitted later than 30 days after the performance period end date may result in denial of payment. In our audit, we found that 8 out of 12 PERs tested were submitted after the 10th of the following month. In addition, 1 of the 8 PERs submitted untimely, was submitted later than 30 days after the performance period end date. Audit Recommendation: We recommend Alpine Achievers Initiative review and follow policies and procedures to ensure timely submission of reports Management’s Response and Corrective Action Plan: Alpine Achievers Initiative acknowledges the finding and recommendation. Late submissions occurred due to delays on responses from the grantor. Management will be more proactive in documenting communication regarding Period Expense Reports (PERs) to ensure that, if they are submitted late, there is clear evidence of why and what date they were initially submitted. Management is now aware that the PER system only reflects the final submission date once approved, not the initial submission date. To address this, Alpine Achievers Initiative (AAI) will implement a process to document the initial submission date along with any backup documentation of delays, including communications with Serve Colorado or other relevant parties. Additionally, Serve Colorado has clarified that while timely submission of PERs is required, grantees who communicate a need for additional time by the 10th of the month are considered compliant. Serve Colorado also noted that, based on AAI’s history and previous communications, they would not consider this a finding or an indicator of poor performance. Moving forward, AAI will ensure that any anticipated delays are formally communicated to Serve Colorado before the due date and that records of these communications are retained for audit purposes. Contact and Completion Date: Megan Strauss (megan@alpineachievers.org) is the primary contact, and the Executive Director at Alpine Achievers Initiative. The correction action is expected to be resolved before the end of the next fiscal year-end of July 31, 2026. Finding 2025-001: Vendor Master File and Purchasing Hierarchy – Significant Deficiency Audit Finding: Alpine Achievers Initiative should establish and maintain a process to review their vendor master file, at least annually, to ensure the accuracy of vendor information. In addition, Alpine Achievers Initiative should create a policy to delineate purchasing authority as to allow employees to manage their programs. Alpine Achievers Initiative does not have a process in place to review their vendor master file and a policy to delineate purchasing authority. Audit Recommendation: We recommend Alpine Achievers Initiative establish and maintain a process to review their vendor master file, at least annually, and create a policy to delineate purchasing authority as to allow employees to manage their programs. Management’s Response and Corrective Action Plan: Alpine Achievers Initiative (AAI) acknowledges the audit finding regarding the need to establish and maintain a process for reviewing the vendor master file and delineating purchasing authority. AAI’s current processes do include review and approval of all expenses paid by the appropriate parties. AAI already has a plan in place to review and revise written policies with their outsourced CPA firm. We will make sure that these two items are specifically addressed so that evidence and policies align with practice. Contact and Completion Date: Megan Strauss (megan@alpineachievers.org) is the primary contact, and the Executive Director at Alpine Achievers Initiative. The correction action is expected to be resolved before the end of the next fiscal year-end of July 31, 2026.

View Audit 398869

Finding 1206667 (2025-004)

Material Weakness 2025

East St Louis School District 189

IL

Subrecipient Monitoring Reporting Allowable Costs / Cost Principles § 200.302 § 200.303 § 200.344 § 200.403 § 200.405

Corrective Action Plan Finding No. 2025-004 Condition – The District submitted an expenditure report for $19,165,569 for the quarter ending March 31, 2025, which included amounts that were properly obligated but not yet expended as of the report date. The District reported $14,638,097 in ESSER funds...

Corrective Action Plan Finding No. 2025-004 Condition – The District submitted an expenditure report for $19,165,569 for the quarter ending March 31, 2025, which included amounts that were properly obligated but not yet expended as of the report date. The District reported $14,638,097 in ESSER funds on the Schedule of Expenditures of Federal Awards (SEFA), resulting in an unsupported difference of $4,527,472. Plan – The District will implement additional review processes to ensure material errors are detected and corrected. The District requested all ESSER obligated funds as of March 2025 as directed by the state. Anticipated Date of Completion: 03.06.26 Name of Contact Person: Delfaye Jason, Chief School Business Official

View Audit 398795

Finding 1206651 (2025-003)

Material Weakness 2025

Intrahealth International, Inc,

NC

Subrecipient Monitoring Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.112 § 200.318

Views of Responsible Officials: Management concurs with the finding. During FY2025, the organization experienced significant disruption related to Federal stop-work orders and associated cost-reduction measures, including staff terminations and the discontinuation of certain legacy systems during th...

Views of Responsible Officials: Management concurs with the finding. During FY2025, the organization experienced significant disruption related to Federal stop-work orders and associated cost-reduction measures, including staff terminations and the discontinuation of certain legacy systems during the transition and integration of operations with Global Communities. As a result, for some employees in the audit sample—particularly those who separated from the organization prior to the FY2025 attestation cycle—management was unable to retrieve employee-signed conflict of interest attestations for the immediately preceding period because the systems and files used to capture and retain those acknowledgments were no longer accessible, and responsible personnel were no longer employed. Management notes that, for a portion of the employee population, the FY2025 ethics training included a conflicts of interest section requiring employee acknowledgment; however, system limitations affected the ability to produce individual, employee-named attestations for all sampled employees in a format suitable for audit evidence. Planned Corrective Actions: Following the operational integration with Global Communities, management is strengthening controls over conflict of interest compliance by: (1) requiring conflict of interest acknowledgment at onboarding and on a periodic basis thereafter through a standardized process; (2) maintaining a centralized tracking mechanism to monitor completion status; (3) retaining documentation in a centralized repository/personnel record to ensure retrievability; and (4) performing periodic monitoring to confirm completion and retention across headquarters and field locations. These actions are intended to improve documentation, transparency, and ongoing compliance with conflict of interest requirements and standards of conduct.

View Audit 398759

Finding 1206648 (2025-003)

Material Weakness 2025

Spanish Speaking Unity Council of Alameda County, Inc.

CA

Subrecipient Monitoring § 200.332

Finding Number: 2025-003 Management concurs with the finding. However, the finding relates to Subrecipient monitoring for contract ended in February 2025 and was not renewed. The Organization has no other subrecipients expenses.

View Audit 398747

Finding 1206647 (2025-002)

Material Weakness 2025

Spanish Speaking Unity Council of Alameda County, Inc.

CA

Reporting Subrecipient Monitoring Allowable Costs / Cost Principles § 200.516

Finding Number: 2025-002 Management concurs with the finding. However, the cut-off finding relates to Subrecipient expenses for contract ended in February 2025 and was not renewed. The Organization has no other subrecipients expenses.

View Audit 398747

Finding 1206630 (2025-002)

Material Weakness 2025

Sunnycrest Village Project LLC

SD

HUD Housing Programs Internal Control / Segregation of Duties Subrecipient Monitoring

Finding 2025-002 Federal Agency Name: U.S. Department of Housing and Urban Development Federal Financial Assistance Listing Number: #14.134 Program Name: Mortgage Insurance Rental Housing Finding Summary: The testing of property, operations, and distributions detected one instance of underpayment of...

Finding 2025-002 Federal Agency Name: U.S. Department of Housing and Urban Development Federal Financial Assistance Listing Number: #14.134 Program Name: Mortgage Insurance Rental Housing Finding Summary: The testing of property, operations, and distributions detected one instance of underpayment of an expense based upon review of supporting invoices and the allocation of the expense. Corrective Action Plan: The invoice approval form will include a note stating that, before completing a disbursement of funds, the request must include supporting documents including allocation calculations and approvals. Accounts Payable staff retraining on allocation calculations has been completed, and the calculation formulas have been updated. Responsible Individuals: Mary Morgan, Executive Director Anticipated Completion Date: April 2026

View Audit 398716

Finding 1206619 (2025-002)

Material Weakness 2025

Western Illinois Area Agency on Aging

IL

Subrecipient Monitoring Internal Control / Segregation of Duties Material Weakness

Aging Cluster – Assistance Listing Numbers: 93.044, 93.045, and 93.053 Recommendation: We recommend the Agency keep track of which subrecipients need to be monitored during each year and ensure all monitoring is completed. Explanation of disagreement with audit finding: There is no disagreement with...

Aging Cluster – Assistance Listing Numbers: 93.044, 93.045, and 93.053 Recommendation: We recommend the Agency keep track of which subrecipients need to be monitored during each year and ensure all monitoring is completed. Explanation of disagreement with audit finding: There is no disagreement with the finding. Action taken in response to finding: The Agency will review its subrecipient tracking to ensure all monitoring is completed. Name of the contact person responsible for corrective action: Tony Vermazen, Fiscal Manager Planned completion date for corrective action plan: Fiscal Year 2026

View Audit 398697

Finding 1206604 (2025-001)

Material Weakness 2025

Vinton County Local School District

OH

Matching / Level of Effort / Earmarking Subrecipient Monitoring

The district purchased a welding lab exhaust system through the ESSER program as part of the welding shop renovation project. While the primary contract for the project included the required Davis-Bacon provisions, a separate purchase was made for the exhaust system that was believed to be equipment...

The district purchased a welding lab exhaust system through the ESSER program as part of the welding shop renovation project. While the primary contract for the project included the required Davis-Bacon provisions, a separate purchase was made for the exhaust system that was believed to be equipment only. However, the vendor agreement included labor, and the existing contract did not cover this portion of the work. As a result, the required Davis-Bacon language was not included, and certified payroll documentation was not obtained. The district does not typically pay for construction projects involving labor with federal funds. To address this moving forward, the district is implementing additional review procedures to ensure all federally funded purchases are evaluated for potential labor components prior to approval. Any purchase involving labor will include the required federal provisions and documentation. The district will also strengthen internal communication during project planning to ensure all components are properly identified and compliant.

View Audit 398681

Finding 1206581 (2025-003)

Material Weakness 2025

School District of Jennings

MO

Matching / Level of Effort / Earmarking Subrecipient Monitoring Cash Management § 200.302

The District plans to design and implement a formal month-end reconciliation and claim certification process that includes: matching food service vendor meal counts to internal District records, dual review and approval, timely corrections, training and cross-training, and monitoring.

View Audit 398633

Finding 1206492 (2025-001)

Material Weakness 2025

Focus: Hope and Subsidiaries

MI

Cash Management Subrecipient Monitoring Reporting § 200.305

Management has agreed to closely monitor the receipt of federal funds and disburse those funds timely in order to ensure compliance with this regulation. The Cash Balance Report that is updated daily of all incoming receipts will be used as a tool to ensure expenses incurred are paid timely in the w...

Management has agreed to closely monitor the receipt of federal funds and disburse those funds timely in order to ensure compliance with this regulation. The Cash Balance Report that is updated daily of all incoming receipts will be used as a tool to ensure expenses incurred are paid timely in the weekly disbursements.

View Audit 398559

Corrective Action Plans

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