Corrective Action Plans

Finding 1222345 (2025-004)

Material Weakness 2025

Center for Independence of Individuals with Disabilities

CA

Allowable Costs / Cost Principles Subrecipient Monitoring Cash Management § 200.303 § 200.305 § 200.309 § 200.328 § 200.329

Provide all management staff with annual training on federal grant requirements, perform periodic internal reviews and a final year-end reconciliation, maintainall grant-related records on a shared organizational drive accessible to all responsible staff, provide formal onboarding and off boarding p...

Provide all management staff with annual training on federal grant requirements, perform periodic internal reviews and a final year-end reconciliation, maintainall grant-related records on a shared organizational drive accessible to all responsible staff, provide formal onboarding and off boarding procedures for federal grant management, and update the Finance Manual .

View Audit 406136

Finding 1222341 (2025-001)

Material Weakness 2025

Family Life Center, Inc.

AL

Internal Control / Segregation of Duties Subrecipient Monitoring

Management has issued written policies and required training of all employees that handle financial transactions and will continually evaluate processes to find ways to segregate duties where possible. Management and the board of directors will continue to oversee operations closely requiring approv...

Management has issued written policies and required training of all employees that handle financial transactions and will continually evaluate processes to find ways to segregate duties where possible. Management and the board of directors will continue to oversee operations closely requiring approvals for all transactions.

View Audit 406128

Finding 1222294 (2025-006)

Material Weakness 2025

Jackson County, Florida

FL

Matching / Level of Effort / Earmarking Special Tests & Provisions Questioned Costs § 200.303

Lynsey Darragh – Administrative Services Director and Lucas Mayo – Grant Administrator will develop procedures to obtain and review certified payrolls for construction projects to ensure compliance with the wage rate requirements. Anticipated completion date is July 31, 2026.

View Audit 406113

Finding 1222232 (2025-002)

Material Weakness 2025

North East Community Action Corporation and Subsidiaries

MO

Subrecipient Monitoring Reporting Significant Deficiency

U.S. Department of Agriculture: ALN-10.415 Rural Rental Housing Loan Program Significant Noncompliance – Reporting A. Comments on Findings and Recommendations: We concur with the auditor’s suggestions for filing reports by the dates outlined in the grant agreements. B. Actions Taken or Planned: Mana...

U.S. Department of Agriculture: ALN-10.415 Rural Rental Housing Loan Program Significant Noncompliance – Reporting A. Comments on Findings and Recommendations: We concur with the auditor’s suggestions for filing reports by the dates outlined in the grant agreements. B. Actions Taken or Planned: Management will continue to evaluate their processing and oversight controls with respect to current federal awards and requirements to ensure required program reporting is submitted timely and in accordance with required deadlines. Anticipated completion date: Immediately Responsible party: Vicky Pritchett, Finance Director Contact information for this finding: Vicky Pritchett, Finance Director at 573-213-4811 extension #10102 with questions regarding this plan.

View Audit 406104

Finding 1222211 (2025-002)

Material Weakness 2025

Housing Authority of the City of Bremerton

WA

HUD Housing Programs Subrecipient Monitoring Internal Control / Segregation of Duties

Finding ref number: 2025-002 Finding caption: The Housing Authority did not have adequate internal controls for ensuring compliance with Housing Quality Standard inspection requirements. Name, address, and telephone of Housing Authority contact person: Wendy Westby 600 Park Avenue Bremerton, WA 9833...

Finding ref number: 2025-002 Finding caption: The Housing Authority did not have adequate internal controls for ensuring compliance with Housing Quality Standard inspection requirements. Name, address, and telephone of Housing Authority contact person: Wendy Westby 600 Park Avenue Bremerton, WA 98337 (360) 616-7111 Corrective action the auditee plans to take in response to the finding: BHA agrees with the finding. BHA acknowledges that certain biennial HQS inspections were not completed within required timeframes due to a Yardi notification and scheduling issue, staffing limitations, and reliance on outdated guidance when determining inspection deadlines. BHA has taken and will continue to take corrective action to strengthen internal controls over HQS inspection scheduling, monitoring, and completion. Corrective actions include resolving the primary Yardi scheduling issue, completing additional system refinements and testing, updating procedures for determining biennial inspection due dates, training staff on current HQS inspection requirements and BHA policy, hiring an additional Housing Inspector I, using an additional contract inspector, and using temporary administrative support to assist with inspection scheduling and communication. During fiscal year 2026, BHA will use manual monitoring and quality-control supervisory review to track upcoming, completed, and overdue inspections while the backlog is being cleared. BHA will review inspection reports regularly to monitor progress and ensure inspections are scheduled and completed at least biennially in accordance with federal requirements and BHA policy. Anticipated date to complete the corrective action: BHA expects to complete the inspection backlog and have inspections current by September 30, 2026. BHA expects to return to normal inspection operations effective October 1, 2026.

View Audit 406071

Finding 1222209 (2025-004)

Material Weakness 2025

Cheney Care Community

WA

HUD Housing Programs Questioned Costs Subrecipient Monitoring

Finding 2025-004: Section 232 Loan – Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities Loan, ALN 14.129 Anticipated Completion Date: December 10, 2025 Recommendation: It was recommended the related party reimburse Cheney Care Communit...

Finding 2025-004: Section 232 Loan – Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities Loan, ALN 14.129 Anticipated Completion Date: December 10, 2025 Recommendation: It was recommended the related party reimburse Cheney Care Community. It was also recommended management of Cheney Care Community review their internal controls over the cash disbursement process with the necessary individuals involved in the process to ensure disbursements are not made outside of HUD’s allowable regulations going forward. Action Taken: The related party reimbursed Cheney Care Community. The Executive Director/Administrator and Accountant will review the process and procedures in place with the new accounts payable clerk, and implement controls to ensure HUD requirements are followed going forward. In addition, they will review the review and monitoring controls in place and revise as needed to ensure the proper checks are in place to catch errors.

View Audit 406067

Finding 1222208 (2025-003)

Material Weakness 2025

Cheney Care Community

WA

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking Questioned Costs § 200.302 § 200.303

Finding 2025-003: Section 232 Loan – Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities Loan, ALN 14.129 Anticipated Completion Date: November 20, 2025 Recommendation: It was recommended the related parties reimburse Cheney Care Commun...

Finding 2025-003: Section 232 Loan – Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities Loan, ALN 14.129 Anticipated Completion Date: November 20, 2025 Recommendation: It was recommended the related parties reimburse Cheney Care Community for the expenditures paid on their behalf. In addition, it was recommended management review the disbursements made during the periods of turnover to confirm there were no other unallowable payments made. It was also recommended management of Cheney Care Community review their internal controls over the cash disbursement process with the necessary individuals involved in the process to ensure the controls are consistently performed going forward. Action Taken: The related parties reimbursed Cheney Care Community for the expenditures paid on their behalf. Since the new accounts payable clerk started in the Summer of 2025, they have been reviewing all of the supporting documentation for disbursements made during the period of turnover, and accumulating any additional corrections that need to be made. They will continue this process for all disbursements from the period of turnover. The Executive Director/Administrator and Accountant will review the process and procedures in place with the new accounts payable clerk, and implement controls to ensure the appropriate facility and general ledger account coding are made going forward. In addition, they will review the review and monitoring controls in place and revise as needed to ensure the proper checks are in place to catch errors.

View Audit 406067

Finding 1222206 (2025-001)

Material Weakness 2025

Cheney Care Community

WA

HUD Housing Programs Reporting Questioned Costs

Finding 2025-001: Section 232 Loan – Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities Loan, ALN 14.129 Anticipated Completion Date: September 30, 2026 Recommendation: It was recommended management of Cheney Care Community review thei...

Finding 2025-001: Section 232 Loan – Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities Loan, ALN 14.129 Anticipated Completion Date: September 30, 2026 Recommendation: It was recommended management of Cheney Care Community review their internal controls over the financial reporting and close processes to determine whether additional controls over the preparation of the final trial balances and related schedules can be implemented to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Action Taken: Cheney Care Community will review their internal controls over the financial reporting and close processes to determine whether additional controls need to be implemented going forward.

View Audit 406067

Finding 1222196 (2025-004)

Material Weakness 2025

Sessions Village 202 171-Ee015

WA

Allowable Costs / Cost Principles Questioned Costs Subrecipient Monitoring § 200.302 § 200.303

Finding 2025-004: Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157 Anticipated Completion Date: June 11, 2026 Recommendation: It was recommended the related parties reimburse Sessions Village 202 for the expenditures paid on their beh...

Finding 2025-004: Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157 Anticipated Completion Date: June 11, 2026 Recommendation: It was recommended the related parties reimburse Sessions Village 202 for the expenditures paid on their behalf. In addition, it was recommended management review the disbursements made during the periods of turnover to confirm there were no other unallowable payments made. It was also recommended management of Sessions Village 202 review their internal controls over the cash disbursement process with the necessary individuals involved in the process to ensure the controls are consistently performed going forward. Action Taken: The related parties reimbursed Sessions Village 202 for the expenditures paid on their behalf. Since the new accounts payable clerk started in the Summer of 2025, they have been reviewing all of the supporting documentation for disbursements made during the period of turnover, and accumulating any additional corrections that need to be made. They will continue this process for all disbursements from the period of turnover. The Executive Director/Administrator and Accountant at the management agent will review the process and procedures in place with the new accounts payable clerk, and implement controls to ensure the appropriate facility and general ledger account coding are made going forward. In addition, they will review the review and monitoring controls in place and revise as needed to ensure the proper checks are in place to catch errors.

View Audit 406042

Finding 1222195 (2025-003)

Material Weakness 2025

Sessions Village 202 171-Ee015

WA

HUD Housing Programs Questioned Costs Subrecipient Monitoring

Finding 2025-003: Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157 Anticipated Completion Date: May 28, 2026 Recommendation: It was recommended Sessions Village 202 deposit the underfunded amount into the account. In addition, it was ...

Finding 2025-003: Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157 Anticipated Completion Date: May 28, 2026 Recommendation: It was recommended Sessions Village 202 deposit the underfunded amount into the account. In addition, it was recommended management of Sessions Village 202 review their internal controls over the insurance escrow deposit process with the necessary individuals involved in the process to ensure the implementation of general ledger account coding on cash disbursements is consistently performed going forward. In addition, it was recommended management review their monitoring controls to ensure a secondary review is conducted at least quarterly to ensure the appropriate deposits were made. Action Taken: In May 2026, the amount was deposited into the account. The Executive Director/Administrator and Accountant at the management agent reviewed the process and procedures in place with the new accounts payable clerk, and implemented controls to ensure the appropriate deposits are made going forward.

View Audit 406042

Finding 1222194 (2025-002)

Material Weakness 2025

Sessions Village 202 171-Ee015

WA

Questioned Costs Subrecipient Monitoring HUD Housing Programs

Finding 2025-002: Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157 Anticipated Completion Date: November 13, 2025 Recommendation: It was recommended Sessions Village 202 deposit the underfunded amount into the account. In addition, it...

Finding 2025-002: Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157 Anticipated Completion Date: November 13, 2025 Recommendation: It was recommended Sessions Village 202 deposit the underfunded amount into the account. In addition, it was recommended management of Sessions Village 202 review their internal controls over the reserve for replacements deposit process with the necessary individuals involved in the process to ensure the implementation of general ledger account coding on cash disbursements is consistently performed going forward. In addition, it was recommended management review their monitoring controls to ensure a secondary review is conducted at least quarterly to ensure the appropriate deposits were made. Action Taken: In November 13, 2025, the amount was deposited into the account. The Executive Director/Administrator and Accountant at the management agent reviewed the process and procedures in place with the new accounts payable clerk, and implemented controls to ensure the appropriate deposits are made going forward.

View Audit 406042

Finding 1222187 (2025-004)

Material Weakness 2025

Dartmouth-Hitchcock Health and Subsidiaries

NH

Questioned Costs Subrecipient Monitoring Reporting § 200.328

2025-004 Reporting Cluster: Other major program referenced below Sponsoring Agency: Department of Labor Award Names: RETAIN Demonstration Projects Award Numbers: 1947RTN2-02B Assistance Listing Title: Disability Employment Policy Development Assistance Listing Number: 17.720 Award Year: 2024-2025 Pa...

2025-004 Reporting Cluster: Other major program referenced below Sponsoring Agency: Department of Labor Award Names: RETAIN Demonstration Projects Award Numbers: 1947RTN2-02B Assistance Listing Title: Disability Employment Policy Development Assistance Listing Number: 17.720 Award Year: 2024-2025 Pass-through entity: Vermont Department of Labor Management agrees with the finding related to Reporting. Management submitted monthly reports to the State of Vermont that covered all required information and thus did not believe quarterly reports were required.. The State of Vermont subsequently clarified that quarterly reports were required and we will work with them to ensure all required information is submitted for past quarters and going forward, as required. Individual Responsible: John Muhlen, System Vice President of Corporate Finance Anticipated Completion Date: September 30, 2026

View Audit 406039

Finding 1222186 (2025-003)

Material Weakness 2025

Dartmouth-Hitchcock Health and Subsidiaries

NH

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.214

2025-003 Suspension & Debarment Cluster: Other major program referenced below Sponsoring Agency: Department of Health and Human Services Award Names: Doorway for Substance Use-Related Supports and Services Award Numbers: Cheshire Medical Center 05-95-920510-7040000 Assistance Listing Title: Opioid S...

2025-003 Suspension & Debarment Cluster: Other major program referenced below Sponsoring Agency: Department of Health and Human Services Award Names: Doorway for Substance Use-Related Supports and Services Award Numbers: Cheshire Medical Center 05-95-920510-7040000 Assistance Listing Title: Opioid STR Assistance Listing Number: 93.788 Award Year: 2024-2025 Pass-through entity: New Hampshire Department of Health and Human Services Management agrees with the finding related to Suspension & Debarment. Dartmouth Health experienced significant leadership turnover and changeover in the contracting and procurement function in fiscal year 2025. This was the primary cause of suspension and debarment checks not being completed before entering into agreements with new vendors. The Office of Research Finance will provide training to procurement and contracting staff to further emphasize the importance of performing vendor checks before entering into agreements. Individual Responsible: John Muhlen, System Vice President of Corporate Finance Anticipated Completion Date: September 30, 2026

View Audit 406039

Finding 1222185 (2025-001)

Material Weakness 2025

Dartmouth-Hitchcock Health and Subsidiaries

NH

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.430

2025-001 Timeliness of Effort Certification Cluster: Research and Development (also applies to other major programs referenced below) Sponsoring Agency: All research and development cluster sponsoring agencies and Department of Health and Human Services (for the other major program referenced below)...

2025-001 Timeliness of Effort Certification Cluster: Research and Development (also applies to other major programs referenced below) Sponsoring Agency: All research and development cluster sponsoring agencies and Department of Health and Human Services (for the other major program referenced below) Award Names: All research and development cluster awards and Doorway for Substance Use-Related Supports and Services Award Numbers: All research and development cluster awards, Cheshire Medical Center 05-95-920510-7040000 Assistance Listing Title: All research and development cluster assistance listing titles and Opioid STR Assistance Listing Number: All research and development cluster assistance listing numbers and 93.788 Award Year: 2024-2025 Pass-through entity: All research and development cluster pass-through entities and New Hampshire Department of Health and Human Services This is a repeat finding of 2024-002 and in the prior year corrective action plan we had anticipated correcting this matter by March 31, 2025. Due to additional training needing to be administered to providers, we had to revise our date of completion to September 30, 2026. Management agrees with the finding related to the timeliness of effort certification. Management has continued to provide training and education to both operational and clinical leadership regarding timely effort certification. Dartmouth-Hitchcock currently has two effort certification systems: one used for research and one used to track other metrics. This has caused confusion among those required to certify effort for federal awards as they often believe that they had already certified their effort for research purposes . Management will provide additional education sessions and provide further clarification to the research community on the importance of timely effort certification and the differences in each effort reporting system. Individual Responsible: John Muhlen, System Vice President of Corporate Finance Anticipated Completion Date: September 30, 2026

View Audit 406039

Finding 1222184 (2025-002)

Material Weakness 2025

Dartmouth-Hitchcock Health and Subsidiaries

NH

Equipment & Real Property Management Subrecipient Monitoring § 200.313

2025-002 Equipment Management Cluster: Research and Development Sponsoring Agency: All research and development cluster sponsoring agencies Award Names: All research and development cluster awards Award Numbers: All research and development cluster awards Assistance Listing Title: All research and d...

2025-002 Equipment Management Cluster: Research and Development Sponsoring Agency: All research and development cluster sponsoring agencies Award Names: All research and development cluster awards Award Numbers: All research and development cluster awards Assistance Listing Title: All research and development cluster assistance listing titles Assistance Listing Number: All research and development cluster assistance listing numbers Award Year: 2024-2025 Pass-through entity: All research and development cluster pass-through entities This is a repeat finding of 2024-004 and 2022-001 and in the prior year corrective action plan we had anticipated correcting this matter by June 30, 2025. Management agrees with the finding related to equipment management. Management conducted a biannual physical inventory count of specific federally purchased research equipment in Fiscal Year 2024, however the complete population of equipment funded with federal research and development dollars were not inspected. By September 30, 2025, the Dartmouth Health system created a federal equipment tracking procedure, and updated property records to include details required by 2 CFR section 200.313. Management will perform a full physical inventory of research equipment for the year ending September 30, 2026 and update the clinical inventory database to reflect the results of the inventory to be able to remediate the finding. Individual Responsible: John Muhlen, System Vice President of Corporate Finance Anticipated Completion Date: September 30, 2026

View Audit 406039

Finding 1221765 (2025-001)

Material Weakness 2025

Senior Citizens Housing Development Corporation of Ville Platte

FL

HUD Housing Programs Subrecipient Monitoring Reporting

Oversight Agency for Audit, Senior Citizens Housing Development Corporation of Ville Platte respectfully submits the following corrective action plan for the year ended September 30, 2025. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suit...

Oversight Agency for Audit, Senior Citizens Housing Development Corporation of Ville Platte respectfully submits the following corrective action plan for the year ended September 30, 2025. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 201, Coral Springs, Florida 33067 Audit period: October 1, 2024 through September 30, 2025 The finding from the September 30, 2025 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. SECTION III – FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT FINDING No. 2025-001:Section 202 Supportive Housing for the Elderly, ALN 14.157 Recommendation: The Project should implement procedures for compliance with all HUD regulations and ensure that all supporting documents are appropriately retained. Action Taken: Management has implemented procedures to ensure compliance with HUD requirements related to utility allowances and document retention. The Project will perform and document an annual utility allowance review and analysis in accordance with HUD regulations. Supporting documentation used in the analysis, including utility rate information and calculation worksheets, will be maintained in the Project's compliance files and retained in accordance with HUD record-retention requirements. Management has also established procedures to ensure that all compliance-related documentation is properly organized, reviewed, and retained to support future audits and monitoring reviews. Responsibility for maintaining the utility allowance analysis and related supporting documentation has been assigned to designated management personnel, and periodic reviews will be performed to verify that required records are complete and accessible. These corrective actions are expected to be fully implemented by September 30, 2026. If the Oversight Agency for Audit has questions regarding this plan, please call Irene Phillips at 954-835-9200. Sincerely yours, Irene Phillips CFO

View Audit 406018

Finding 1221750 (2025-001)

Material Weakness 2025

West Kentucky Rural Telephone Cooperative Corporation, Inc.

KY

Procurement, Suspension & Debarment Subrecipient Monitoring

Corrective Action Plan WK&T respectfully submits the following corrective action plan for the year ended December 31, 2025. Finding: 2025-001 –Suspension and Debarment Responsible Individuals: Bhavini Sokhey, Chief Financial Officer Anticipated Completion Date: Implemented Finding Summary: Lack of d...

Corrective Action Plan WK&T respectfully submits the following corrective action plan for the year ended December 31, 2025. Finding: 2025-001 –Suspension and Debarment Responsible Individuals: Bhavini Sokhey, Chief Financial Officer Anticipated Completion Date: Implemented Finding Summary: Lack of documented policies and procedures related to suspension and debarment Corrective Action Plan: •The Company has developed and implemented formal written policies and procedures to addresscompliance with federal suspension and debarment requirements. •Prior to awarding any contract funded with federal or state funds, the Company will verify that thevendor or contractor is not suspended or debarred by reviewing the SAM.gov Exclusions database.Documentation of the verification will be retained in the procurement file. •The Company will require all contractors participating in federally or state-funded projects toexecute a certification confirming they are not debarred, suspended, proposed for debarment,declared ineligible, or voluntarily excluded from participation in such programs. •The procurement and grant administration staff are responsible for performing and documentingthese procedures. Compliance will be reviewed as part of the Company's procurement process andongoing grant oversight to ensure adherence to federal and state requirements.

View Audit 406009

Finding 1221742 (2025-004)

Material Weakness 2025

Women's Center

MI

Questioned Costs Subrecipient Monitoring Reporting

2025-004 – COMPLIANCE AND CONTROLS OVER REPORTING Corrective Action Plan: The Organization has developed a centralized reporting calendar identifying all required report filing deadlines. Designated staff will utilize the reporting calendar to monitor and ensure the timely submission of all required...

2025-004 – COMPLIANCE AND CONTROLS OVER REPORTING Corrective Action Plan: The Organization has developed a centralized reporting calendar identifying all required report filing deadlines. Designated staff will utilize the reporting calendar to monitor and ensure the timely submission of all required reports. The reporting calendar will be incorporated into the Organization's succession planning and reviewed regularly to ensure compliance with all reporting requirements and continuity during staff transitions. Responsible Party(ies): • Executive Director • Finance Manager Anticipated Date of Completion: September 30, 2026

View Audit 406001

Finding 1221699 (2025-001)

Material Weakness 2025

Sadd, Inc.

DC

Subrecipient Monitoring Allowable Costs / Cost Principles Significant Deficiency § 200.430

Views of Responsible Officials: Management appreciates the auditors' recommendations and recognizes the importance of consistently documenting supervisory review and approval of employee timesheets.The finding relates to the documentation and retention of supervisory approval for certain employee ti...

Views of Responsible Officials: Management appreciates the auditors' recommendations and recognizes the importance of consistently documenting supervisory review and approval of employee timesheets.The finding relates to the documentation and retention of supervisory approval for certain employee timesheets selected for testing. The Organization appreciates the opportunity to strengthen the documentation of an existing supervisory review process to ensure approvals are consistently evidenced and retained. To address the recommendation, the Organization has reinforced supervisory expectations, updated internal procedures related to timesheet approvals, and implemented periodic monitoring to verify that supervisory approvals are consistently documented and retained. Management believes these enhancements appropriately address the recommendation and further strengthen the Organization's existing internal control environment while reinforcing its commitment to sound internal controls and compliance with applicable grant requirements.

View Audit 405966

Finding 1221680 (2025-002)

Material Weakness 2025

City of North Kansas City

MO

Procurement, Suspension & Debarment Subrecipient Monitoring

Corrective Action Plan: Management acknowledges the deficiency. The City has historically performed suspension and debarment verification as part of its contract review process prior to contract execution; however, documentation evidencing completion of the verification was not retained in the contr...

Corrective Action Plan: Management acknowledges the deficiency. The City has historically performed suspension and debarment verification as part of its contract review process prior to contract execution; however, documentation evidencing completion of the verification was not retained in the contract file. To strengthen this control, the City has implemented procedures requiring documentation of suspension and debarment verification for all federally funded contracts and grant-related procurements. Staff will retain a dated screenshot or other evidence of the System for Award Management (SAM.gov) search in each applicable contract file prior to contract execution. Additionally, the City's Procurement Policy was updated and approved by the City Council in October 2025 to further strengthen procurement procedures and federal grant compliance requirements. Finance staff will periodically review contract files to verify that the required documentation has been retained. Personnel Responsible for Corrective Action: Nick Hawkins, Finance Manager Anticipated Completion Date: October 31, 2025

View Audit 405957

Finding 1221659 (2025-001)

Material Weakness 2025

Wakemed

NC

Subrecipient Monitoring Reporting § 200.302 § 200.331 § 200.510

Finding Number: 2025-001 Condition: Management concurs with the finding and has implemented a new grant governance committee and process for identifying grant components before entering into grant agreements. Management also created a new grant department with staff devoted to researching, applying ...

Finding Number: 2025-001 Condition: Management concurs with the finding and has implemented a new grant governance committee and process for identifying grant components before entering into grant agreements. Management also created a new grant department with staff devoted to researching, applying for, monitoring, and reporting on all grants. The accounting function for grants will be done by this team as well but with continued oversight by the Executive Director, Accounting. Contact person responsible for corrective action: Stephanie Sessoms, Chief Financial Officer; Lynn Bailey, Executive Director, Accounting Anticipated Completion Date: 1/12/2026

View Audit 405945

Finding 1221654 (2025-002)

Material Weakness 2025

Housing Authority of the City of New Haven D/b/a Elm City Communities

CT

HUD Housing Programs Internal Control / Segregation of Duties Questioned Costs

We agree that Elm City Communities should have a control environment that allows the books to be closed and regulatory reports filed on a timely basis. In August 2025 we completed a conversion from Elite to Yardi. This caused us to take longer than normal for our year end close process. Planned Impl...

We agree that Elm City Communities should have a control environment that allows the books to be closed and regulatory reports filed on a timely basis. In August 2025 we completed a conversion from Elite to Yardi. This caused us to take longer than normal for our year end close process. Planned Implementation Date of Corrective Action: Immediately Person Responsible for Corrective Action: Shenae Draughn, President.

View Audit 405932

Finding 1221619 (2025-005)

Material Weakness 2025

Southeast Rural Community Assistance Project, Inc.

VA

Procurement, Suspension & Debarment Subrecipient Monitoring Eligibility § 200.214

• Management Response - SERCAP will improve lease accounting controls by: Creating and maintaining accurate model spreadsheet of centralized lease inventory for all operating and financing leases. Establishing written procedures requiring all lease agreements, amendments, renewals, and extensions to...

• Management Response - SERCAP will improve lease accounting controls by: Creating and maintaining accurate model spreadsheet of centralized lease inventory for all operating and financing leases. Establishing written procedures requiring all lease agreements, amendments, renewals, and extensions to be communicated to the Finance Department immediately upon execution. Performing an annual review of all lease agreements to determine whether modifications require remeasurement under ASC 842. Preparing documented lease calculations and reconciliations for supervisory review. Updating accounting policies and procedures related to lease accounting and providing additional staff training regarding ASC 842 requirements. In addition, setup a policy and procedure for the review and documentation review of all contracts for a potential embedded lease transaction. SERCAP has hired new staff for capacity and support. • Contact Person: • Contact Phone Number: • Expected Completion Date: Charles Denny, Jr. - Finance & Operations 540-345-1184 ext. 128 September 30, 2026

View Audit 405852

Finding 1221618 (2025-004)

Material Weakness 2025

Southeast Rural Community Assistance Project, Inc.

VA

Cash Management Questioned Costs Subrecipient Monitoring

• Management Response - Management concurs with the finding and recognizes the importance of strengthening controls over revenue recognition for conditional grants and contributions. SERCAP will implement the following corrective actions: Develop and implement a standardized Grant Revenue Recognitio...

• Management Response - Management concurs with the finding and recognizes the importance of strengthening controls over revenue recognition for conditional grants and contributions. SERCAP will implement the following corrective actions: Develop and implement a standardized Grant Revenue Recognition Checklist for all new grant awards to identify conditional barriers, allowable costs, reporting requirements, and revenue recognition criteria. Maintain a centralized grant tracking schedule that identifies grant conditions, expenditures incurred, revenue recognized, refundable advances, and remaining deferred revenue. Perform monthly reconciliations between grant schedules and the general ledger. Implement a documented two-level review process whereby the preparer completes the reconciliation and a supervisory reviewer verifies the accuracy and completeness before month-end close. Provide additional training to finance and program management staff regarding ASC 958 revenue recognition requirements for conditional contributions. Update internal accounting procedures to document the review and approval process for recognizing grant revenue. These procedures will be incorporated into the monthly financial close process and monitored throughout FY2026. SERCAP has hired new staff for capacity and support • Contact Person: Charles Denny, Jr. - Finance & Operations • Contact Person: Beth Pusha - Loan Fund • Contact Phone Number: 540-345-1184 • Expected Completion Date: September 30, 2026

View Audit 405852

Finding 1221612 (2025-001)

Material Weakness 2025

Hughes Village Council

AK

Questioned Costs Subrecipient Monitoring Reporting

Finding 2025-001 Significant Deficiency in Internal Control over Compliance, Noncompliance - Reporting Name of Contact Person: Tawnie J Attla Corrective Action Plan: When we hire, sign agreements that include the completion of duties. So that one doesn’t take the time to learn and then not complete ...

Finding 2025-001 Significant Deficiency in Internal Control over Compliance, Noncompliance - Reporting Name of Contact Person: Tawnie J Attla Corrective Action Plan: When we hire, sign agreements that include the completion of duties. So that one doesn’t take the time to learn and then not complete all tasks before abandoning their position. Before HVC takes on additional grants and duties, the administration (TA and TA Assistant) will learn the processes and portals for the current grants and recurring ones. Create how to guides to include with the new grant binders, for reporting and portal use. Have calendars for each grant. Utilize one big calendar on the wall that includes all the grant reporting periods and the annual requirements for sam.gov (log in requirement). Continue trying to fill positions and delegate workload. Proposed Completion Date: September 30, 2026.

View Audit 405850

Corrective Action Plans

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