Corrective Action Plans

2. The Controller and CEO will complete a comprehensive retrospective review of grant obligations spanning prior period end dates by December 2025, with appropriate documentation and HRSA notification as needed.

View Audit 367237

Finding 1154906 (2024-013)

Material Weakness 2024

South Central Medical and Resource Center, Inc.

OK

Subrecipient Monitoring

3. Internal audit checklists will be updated in Q4 2025 to include period-of-performance compliance for all sampled federal expenditures.

View Audit 367237

Finding 1154906 (2024-013)

Material Weakness 2024

South Central Medical and Resource Center, Inc.

OK

Subrecipient Monitoring

4. Finance staff will receive refresher training on period-of-performance requirements and documentation standards by the end of 2025.

View Audit 367237

Finding 1154885 (2024-002)

Material Weakness 2024

Silver Lake Regional School District

MA

Subrecipient Monitoring Internal Control / Segregation of Duties HUD Housing Programs

Corrective Action Taken:Although the Business Office has created a Federal Grants Compliance Manual, we are unable to follow the manual with fidelity due to the lack of adequate staffing. The District will continue to request additional staff during the next budget cycle.

View Audit 367221

Finding 1154883 (2024-006)

Material Weakness 2024

Durham Public Schools

NC

Subrecipient Monitoring Cash Management Material Weakness

Contact Person: Jeremy Teetor, Chief Financial Officer Corrective Action Plan: The Board of Education will implement controls and procedures to ensure that all bank account and other required reconciliations are prepared on a timely basis going forward. The Finance department will also strive to kee...

Contact Person: Jeremy Teetor, Chief Financial Officer Corrective Action Plan: The Board of Education will implement controls and procedures to ensure that all bank account and other required reconciliations are prepared on a timely basis going forward. The Finance department will also strive to keep key positions filled at all times and ensure that staff receives appropriate training regarding reconciliations. Proposed Completetion Date: Immediately

View Audit 367217

Finding 1154850 (2024-001)

Material Weakness 2024

City of Cheney

WA

Questioned Costs Reporting Matching / Level of Effort / Earmarking

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE City of Cheney January 1, 2024 through December 31, 2024 This schedule presents the corrective action planned by the City for findings reported in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 20...

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE City of Cheney January 1, 2024 through December 31, 2024 This schedule presents the corrective action planned by the City for findings reported in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2024-001 Finding caption: The City did not have adequate internal controls for ensuring compliance with federal allowable costs, matching and reporting requirements, and it did not comply with federal allowable costs and matching requirements. Name, address, and telephone of City contact person: Cindy Niemeier, Finance Director 609 2nd Street Cheney, WA 99004 509-498-9215 Corrective action the auditee plans to take in response to the finding: The City of Cheney recognizes the error in classifying a grant received from the Washington State Department of Commerce as a state grant rather than a federal pass through grant, which makes this funding source ineligible as matching funds in the funding awarded from the Department of Reclamation. The City has contacted the Department of Reclamation federal program to disclose the error and determine the required corrective action. The City of Cheney has proposed replacing the submitted reimbursement requests with City expenses as allowable matching expenses. The City is currently waiting on the Department of Reclamation for direction. The 2024 reporting error was corrected in 2025. Future projects with multiple funding sources will continue to be managed by the individual departments. The additional internal control will require the departments to meet quarterly with Finance to conduct internal audits of the reimbursement requests and completed reporting. Anticipated date to complete the corrective action: December 31, 2025

View Audit 367195 Questioned Costs: $1

Finding 1154796 (2024-001)

Material Weakness 2024

Samuel Merritt University

CA

Subrecipient Monitoring Student Financial Aid

Planned Corrective Action The University acknowledges the finding related to incomplete documentation of the formal risk assessment and the lack of monitoring over access levels to the financial aid system. We are currently developing a comprehensive, documented GLBA risk assessment that aligns with...

Planned Corrective Action The University acknowledges the finding related to incomplete documentation of the formal risk assessment and the lack of monitoring over access levels to the financial aid system. We are currently developing a comprehensive, documented GLBA risk assessment that aligns with federal requirements, including the identification of internal and external risks, evaluation of current safeguards, and implementation of appropriate remediation measures. Additionally, the University is implementing a formalized review process whereby system access roles are reviewed quarterly in collaboration with department managers to ensure user access is consistent with current job responsibilities. This will include a standardized user access review form and documented management sign-off. Implementation Date -Risk Assessment Documentation: December 31, 2025 -Access Review Procedure Implementation: December 31, 2025 Responsible Personnel Marcus D Walton Deputy Chief Operating Officer & CIO

View Audit 367160

Finding 1154192 (2024-003)

Material Weakness 2024

City of Anderson

IN

Subrecipient Monitoring § 200.1 § 200.208 § 200.303 § 200.332 § 200.339

FINDING 2024-003 Finding Subject: COVID 19 Coronavirus State and Local Fiscal Recovery - Subrecipient Monitoring Contact Person Responsible for Corrective Action: Gretchen Parker Contact Phone Number and Email Address: 765-648-6113 gparker@cityofanderson.com Views of Responsible Officials: "We concu...

FINDING 2024-003 Finding Subject: COVID 19 Coronavirus State and Local Fiscal Recovery - Subrecipient Monitoring Contact Person Responsible for Corrective Action: Gretchen Parker Contact Phone Number and Email Address: 765-648-6113 gparker@cityofanderson.com Views of Responsible Officials: "We concur with the finding." Description of Corrective Action Plan: The city has several individuals involved in the monitoring of activities related to the COVID 19 Coronavirus State and Local Fiscal Recovery federal award. The city has implemented procedures to ensure oversight and review of subrecipient reports is properly documented. Anticipated Completion Date: September 1, 2025

View Audit 367104

Finding 1154191 (2024-002)

Material Weakness 2024

City of Anderson

IN

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.303 § 200.317 § 200.318 § 200.319 § 200.320

FINDING 2024-002 Finding Subject: COVID 19 Coronavirus State and Local Fiscal Recovery - Procurement and Suspension and Debarment Contact Person Responsible for Corrective Action: Neal McKee Contact Phone Number and Email Address: 765-648- 6429 nmckee@cityofanderson.com Views of Responsible Official...

FINDING 2024-002 Finding Subject: COVID 19 Coronavirus State and Local Fiscal Recovery - Procurement and Suspension and Debarment Contact Person Responsible for Corrective Action: Neal McKee Contact Phone Number and Email Address: 765-648- 6429 nmckee@cityofanderson.com Views of Responsible Officials: “We concur with the finding.” Description of Corrective Action Plan: The City has a longstanding contractual relationship with an engineering firm with extensive knowledge of the City’s water department. The city has put controls and procedures in place to ensure services are bid where federal awards are involved and the dollar amount of such services is expected to exceed the simplified acquisition threshold. The City will review its procurement policy and amend where necessary to conform to the current requirements of CFR 200.318. The City has not contracted with suspended or debarred parties. The City has put controls and procedures in place to ensure timely documentation of suspension and debarment checks related to its federal awards. Anticipated Completion Date: January 1, 2026

View Audit 367104

Finding 1154182 (2024-003)

Material Weakness 2024

Lawrence County

IN

Internal Control / Segregation of Duties Subrecipient Monitoring Material Weakness § 200.303

August 20, 2025 FINDING 2024-003 Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Lead Reduction Grant - Reporting Audit Findings: Material Weakness Contact Person Responsible for Corrective Action: Paula Kern-Edwards Contact Phone Number and Email Address: 812-275-3234, pedwa...

August 20, 2025 FINDING 2024-003 Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Lead Reduction Grant - Reporting Audit Findings: Material Weakness Contact Person Responsible for Corrective Action: Paula Kern-Edwards Contact Phone Number and Email Address: 812-275-3234, pedwards@lawrencecounty.in.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The county corrective action plan will be designed to implement a proper system of internal controls that will ensure compliance with the Reporting requirements of the grant. - The County Health Department will implement internal controls that will prevent or correct noncompliance. The Health Department Director will review all reports related to Federal Grants prior to submission, after they have been prepared by another employee. Anticipated Completion Date: 12/31/2025

View Audit 367099

Finding 1154181 (2024-002)

Material Weakness 2024

Lawrence County

IN

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.303

August 20, 2025 FINDING 2024-003 Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Lead Reduction Grant - Reporting Audit Findings: Material Weakness Contact Person Responsible for Corrective Action: Paula Kern-Edwards Contact Phone Number and Email Address: 812-275-3234, pedwa...

August 20, 2025 FINDING 2024-003 Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Lead Reduction Grant - Reporting Audit Findings: Material Weakness Contact Person Responsible for Corrective Action: Paula Kern-Edwards Contact Phone Number and Email Address: 812-275-3234, pedwards@lawrencecounty.in.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The county corrective action plan will be designed to implement a proper system of internal controls that will ensure compliance with the Reporting requirements of the grant. - The County Health Department will implement internal controls that will prevent or correct noncompliance. The Health Department Director will review all reports related to Federal Grants prior to submission, after they have been prepared by another employee. Anticipated Completion Date: 12/31/2025

View Audit 367099

Finding 1154180 (2024-006)

Material Weakness 2024

Evangeline Booth Residence, Inc., A Florida Corporation

FL

HUD Housing Programs Special Tests & Provisions Subrecipient Monitoring

Finding 2024-006 Comments on the Finding and Each Recommendation We agree two tenants were not reimbursed their security deposits timely. This is due in part to staffing issues onsite as well as not having an address to forward the security deposits to upon the former tenant’s demise. Action(s) Take...

Finding 2024-006 Comments on the Finding and Each Recommendation We agree two tenants were not reimbursed their security deposits timely. This is due in part to staffing issues onsite as well as not having an address to forward the security deposits to upon the former tenant’s demise. Action(s) Taken or Planned on the Finding Management will review the processes and procedures with site personnel to strengthen controls over the refund of tenant security deposits. If we are late due to missing appropriate forwarding addresses, we will add documentation in the tenant files of those efforts to support our compliance with HUD procedures.

View Audit 367098

Finding 1154168 (2024-003)

Material Weakness 2024

Industrial Technology Institute Dba Mi Manufacturing Tech Center

MI

Subrecipient Monitoring Procurement, Suspension & Debarment Cash Management § 200.305

Condition: The Organization did not have the appropriate controls in place over FFATA reporting and did not file the required reports. Further, while the Organization had written procedures over cash management, they were outdated and did not reflect the current staffing model. Planned Corrective Ac...

Condition: The Organization did not have the appropriate controls in place over FFATA reporting and did not file the required reports. Further, while the Organization had written procedures over cash management, they were outdated and did not reflect the current staffing model. Planned Corrective Action: Reporting was completed in SAM.gov in May 2025 for subrecipient subaward amount based on the award period running from calendar periods of July to June. Written internal MMTC procedures regarding cash management will be updated and will include the current staff. Contact person responsible for corrective action: Alan Kowalewski Anticipated Completion Date: 10/31/2025

View Audit 367090

Finding 1154166 (2024-004)

Material Weakness 2024

City of Longview

WA

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.318

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE City of Longview January 1, 2024, through December 31, 2024 This schedule presents the corrective action the City is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (...

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE City of Longview January 1, 2024, through December 31, 2024 This schedule presents the corrective action the City is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2024-004 Finding caption: The city did not have adequate internal controls and did not comply with federal procurement requirements. Name, address, and telephone of City contact person: Lisa Wolff, Finance Director PO Box 128 Longview, WA 98632 (360) 442-5036 Corrective action the auditee plans to take in response to the finding: (If the auditee does not concur with the finding, the auditee must list the reasons for disagreement). In response to the issues identified, the city is taking the following steps: 1. Rewriting Procurement Manual o The city passed a resolution in August to update the city’s procurement policy. The new policy will include flow charts and links to Title 2 U.S. Code of Federal Regulations (CFR) Part 200 and applicable RCWs to ensure the City is following required procurement processes. The procurement policy updates are expected to be completed by the end of 2025. 2. Checklist Creation o The city will create a checklist as part of the procurement policy. This checklist will guide city staff through the proper processes and document the steps taken. Status of Identified Errors • The agreement with the organization currently operating the city’s homeless shelter is expiring in the near future. The city is currently going through the bidding process for a new operator. Conclusion The City acknowledges that the procurement policy was not followed upon receipt of grant funding. The City is working on new policies and procedures that will ensure that proper procurement processes are followed moving forward. Upon completion of the updates to the procurement process, the City can supply a copy of the new process at your request. Anticipated date to complete the corrective action: No later than December 31, 2025

View Audit 367073

Finding 1154165 (2024-002)

Material Weakness 2024

City of Longview

WA

Subrecipient Monitoring

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE City of Longview January 1, 2024, through December 31, 2024 This schedule presents the corrective action the City is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (...

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE City of Longview January 1, 2024, through December 31, 2024 This schedule presents the corrective action the City is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2024-002 Finding caption: The city did not have adequate internal controls and did not comply with federal subrecipient monitoring, underwriting and maximum per-unit subsidy requirements. Name, address, and telephone of City contact person: Lisa Wolff, Finance Director PO Box 128 Longview, WA 98632 (360) 442-5036 Corrective action the auditee plans to take in response to the finding: (If the auditee does not concur with the finding, the auditee must list the reasons for disagreement). Corrective Action Plan In response to the issues identified, the city has taken and is continuing to take the following steps: 1. Create a subrecipient monitoring schedule o The city plans to monitor two subrecipients by the end of the city’s 2025 HUD fiscal year. One subrecipient is scheduled to be monitored in October. 2. Provide new guidance to subrecipients o The city will provide new guidance through monitoring to subrecipients that includes: i. Ensuring that all checklists meet HQS standards. ii. Rental contracts are review by the city. iii. Income eligibility evaluations and revaluations are done properly. iv. Funding is spent properly. 3. New underwriting checklists, policies and procedures o The city will work to develop new underwriting policies and procedures that will ensure federal requirements are met. The city will use HUD-provided checklists with certifying signatures for underwriting and thoroughly document that all requirements were met. 4. Underwriting Approvals o All underwriting will be sent to the department director for review and approval. The approvals will include the maximum per-unit subsidy calculations. Status of Identified Errors • The city will perform two monitoring visits in 2025 to ensure subrecipient compliance with federal standards. The city will distribute new guidance during those monitoring visits. City staff members have received new underwriting training earlier this year to fully understand all requirements. Conclusion The turnover in City staff exposed gaps in training for several of these factors. The City is closing these gaps by developing monitoring policies, risk ratings, and performing monitoring this year. With the improvements for subrecipient monitoring and development of new policies and procedures for underwriting, the City will comply with HUD requirements. Anticipated date to complete the corrective action: No later than December 31, 2025

View Audit 367073

Finding 1154164 (2024-003)

Material Weakness 2024

City of Longview

WA

Subrecipient Monitoring Internal Control / Segregation of Duties Reporting

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE City of Longview January 1, 2024, through December 31, 2024 This schedule presents the corrective action the City is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (...

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE City of Longview January 1, 2024, through December 31, 2024 This schedule presents the corrective action the City is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2024-003 Finding caption: The city did not have adequate internal controls and did not comply with federal reporting requirements. Name, address, and telephone of City contact person: Lisa Wolff, Finance Director PO Box 128 Longview, WA 98632 (360) 442-5036 Corrective action the auditee plans to take in response to the finding: (If the auditee does not concur with the finding, the auditee must list the reasons for disagreement). Corrective Action Plan In response to the issues identified, the City has taken, and is continuing to take, the following steps: 1. Create a contract review checklist o The city will create a new checklist for federal contracts to ensure compliance with reporting and included language. 2. Contract finalization and reporting o Upon execution of subaward contracts, the City will ensure that all subawards are entered into the FFATA reporting system on SAM.GOV as required. A city staff member will certify that reporting information has been entered for each subaward contract. Status of Identified Errors • The city has entered all 2024 subawards into the FFATA reporting system. The City will ensure that all 2025 subawards are entered into the FFATA system once subaward contracts are executed. Conclusion The turnover within city staff created a gap in the reporting requirements in SAM.GOV. The City of Longview is committed to improving its internal controls and will continue to develop processes and checklists to ensure accurate reporting. Anticipated date to complete the corrective action: No later than December 31, 2025

View Audit 367073

Finding 1154163 (2024-002)

Material Weakness 2024

Housing Authority of the City of Dothan

AL

Questioned Costs Cash Management HUD Housing Programs

2024-002 – ALN 14.881 – Moving to Work Demonstration Program – Allowable Activities Management acknowledged the finding and will follow the Auditor's recommendations as listed in the Schedule of Findings and Questioned Costs. Person Responsible for Correction of Finding: Samuel Crawford, Chief Execu...

2024-002 – ALN 14.881 – Moving to Work Demonstration Program – Allowable Activities Management acknowledged the finding and will follow the Auditor's recommendations as listed in the Schedule of Findings and Questioned Costs. Person Responsible for Correction of Finding: Samuel Crawford, Chief Executive Officer Projected Completion Date: Ongoing work in progress. No completion date can currently be determined.

View Audit 367072 Questioned Costs: $1

Finding 1154143 (2024-003)

Material Weakness 2024

Adams Housing Authority

MA

HUD Housing Programs Internal Control / Segregation of Duties Subrecipient Monitoring

Auditee’s Response and Planned Corrective Action The Adams Housing Authority will ensure timely submission of the unaudited FDS going forward. Planned Implementation Date of Corrective Action: June 1, 2025 Person Responsible for Corrective Action: William Schrade, Executive Director

View Audit 367068

Finding 1154137 (2024-004)

Material Weakness 2024

American Association of Community Colleges

DC

Questioned Costs Subrecipient Monitoring Reporting

To address this finding, AACC will continue to request that all contracts be reviewed by the Chief Financial Officer prior to execution based on AACC’s Financial Policies and Procedures (page 25). Signed copies of the agreement will be held on file within the accounting department and the party exec...

To address this finding, AACC will continue to request that all contracts be reviewed by the Chief Financial Officer prior to execution based on AACC’s Financial Policies and Procedures (page 25). Signed copies of the agreement will be held on file within the accounting department and the party executing the agreement.

View Audit 367061 Questioned Costs: $1

Finding 1154136 (2024-003)

Material Weakness 2024

American Association of Community Colleges

DC

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring § 200.318

To address this finding, AACC will adhere to the financial policies and procedures properly documenting procurement decisions for goods and services with a total cost of $25,000 or greater. (Financial Policies and Procedures, pages 25, 45). In the event of “Sole Service Providers”, staff will docume...

To address this finding, AACC will adhere to the financial policies and procedures properly documenting procurement decisions for goods and services with a total cost of $25,000 or greater. (Financial Policies and Procedures, pages 25, 45). In the event of “Sole Service Providers”, staff will document the circumstances as such for recording. Effective immediately, all projects will be reviewed by a team assembled within the association, (Staffing to be determined by the President/CEO). A staff member, housed in the President’s Office with research and using a scorecard, assess and present potential opportunities to the President/CEO for approval to proceed. Approved opportunities will be reviewed by the team along with the department head making the request. There will be a collaborative effort of the scope of the project along with the budget necessary to implement the project. All parties will sign-off on their respective steps prior to the full package being presented to the President/Chief Executive Officer for final approval. A checklist will be used to monitor the process. All vendors written into the agreement will be vetted through a process that will include the rationale for their selection.

View Audit 367061 Questioned Costs: $1

Finding 1154135 (2024-002)

Material Weakness 2024

American Association of Community Colleges

DC

Questioned Costs Subrecipient Monitoring § 200.332

To address this finding, AACC will adhere to the financial policies and procedures properly documenting the fraud risk assessments to determine the level of risk (Low, Medium, High), and will properly document all necessary monitoring procedures (Financial Policies and Procedures, pages 45-53). Addi...

To address this finding, AACC will adhere to the financial policies and procedures properly documenting the fraud risk assessments to determine the level of risk (Low, Medium, High), and will properly document all necessary monitoring procedures (Financial Policies and Procedures, pages 45-53). Additionally, AACC has developed a risk assessment policy that will accompany AACC’s Subrecipient Award and Monitoring Policy developed in 2021. The appropriate signatures and corrective action plans and follow up with be managed in a timely manner.

View Audit 367061 Questioned Costs: $1

Corrective Action Plans

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