Corrective Action Plans

Finding 1174829 (2024-003)

Material Weakness 2024

Portland Community Reinvestment Initiatives, Inc.

OR

Reporting Subrecipient Monitoring Allowable Costs / Cost Principles § 200.302 § 200.502 § 200.510

While PCRI does have systems in place to adequately track federal expenditures, the preparation of the schedule of expenditures of federal awards was delayed in large part due to the deficiencies outlined in Finding 2024-001, which led to delays in accurately compiling the information required for t...

While PCRI does have systems in place to adequately track federal expenditures, the preparation of the schedule of expenditures of federal awards was delayed in large part due to the deficiencies outlined in Finding 2024-001, which led to delays in accurately compiling the information required for the schedule of expenditures of federal awards. The transition of relevant accounting processes to the outsourced accounting firm will resolve this deficiency going forward. The timeline for full transition of relevant accounting processes to the outsourced accounting firm which started in January of 2025 was approximately twelve months due to the complexities of PCRI’s operations. PCRI has completed this transition as of December of 2025.

View Audit 388384

Finding 1174727 (2024-002)

Material Weakness 2024

Healing Transitions, Inc.

NC

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Recommendation: We recommend that management implement formal procedures to monitor and track net assets and donor-imposed restrictions on an ongoing basis. This could include maintaining detailed sub-ledgers for restricted funds, reconciling net asset balances regularly, and clearly documenting the...

Recommendation: We recommend that management implement formal procedures to monitor and track net assets and donor-imposed restrictions on an ongoing basis. This could include maintaining detailed sub-ledgers for restricted funds, reconciling net asset balances regularly, and clearly documenting the purpose and restrictions of all contributions. Regular tracking and reconciliation will strengthen internal controls, ensure proper classification of net assets in accordance with U.S. GAAP, and support accurate financial reporting throughout the year. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization has contracted with Ascend Nonprofit Solutions to provide outsourced financial accounting services beginning November 1, 2025, through Ascend’s Finance Shared Services model. Ascend will prepare a listing of Net Asset Restrictions and include an updated listing as part of the monthly financial reporting package. Any complex or non-routine transactions will be reviewed by management with Ascend prior to the preparation of this report. This report will be reviewed by management and the board of directors. Name(s) of the contact person(s) responsible for corrective action: Chris Budnick, Executive Director Planned completion date for corrective action plan: March 2026

View Audit 388299

Finding 1174724 (2024-001)

Material Weakness 2024

Healing Transitions, Inc.

NC

Internal Control / Segregation of Duties Subrecipient Monitoring

2024-001 Internal Controls over Financial Reporting. Recommendation: The Organization has already taken an important step by engaging a contract accountant to assist with cleaning up the accounting records, reconciling financial information, and recording transactions in accordance with U.S. GAAP. A...

2024-001 Internal Controls over Financial Reporting. Recommendation: The Organization has already taken an important step by engaging a contract accountant to assist with cleaning up the accounting records, reconciling financial information, and recording transactions in accordance with U.S. GAAP. As the Organization transitions these responsibilities to the new financial staff member, we recommend providing thorough training, clear expectations, and appropriate oversight to ensure continuity and consistency in accounting and financial reporting. Establishing structured guidance and ongoing monitoring will help strengthen internal controls and promote a smooth and sustainable transition in the finance function. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization has contracted with Ascend Nonprofit Solutions to provide outsourced financial accounting services beginning November 1, 2025, through Ascend’s Finance Shared Services model. Certified Public Accountants from Ascend Nonprofit Solutions will review and provide guidance to Healing Transitions, Inc. regarding their internal control structure, adding an extra layer of expertise and credibility to financial statement reporting. Financial statements will be accounted for in accordance with GAAP, monthly, providing clear reporting for financial management, oversight, and governance. These reports will be distributed to management and the board of directors. Name(s) of the contact person(s) responsible for corrective action: Chris Budnick, Executive Director Planned completion date for corrective action plan: January 2026

View Audit 388299

Finding 1174624 (2024-008)

Material Weakness 2024

Four Square Community Action, Inc.

NC

Subrecipient Monitoring

Management recognizes the need for a formal fraud risk process and plans to implement one to strengthen governance and mitigate risks.

View Audit 388128

Finding 1174623 (2024-007)

Material Weakness 2024

Four Square Community Action, Inc.

NC

Subrecipient Monitoring

Management understands the importance of implementing a risk assessment process. This observation has been noted for future compliance, and steps will be taken to establish a process that aligns with the required compliance obligations.

View Audit 388128

Finding 1174619 (2024-003)

Material Weakness 2024

Four Square Community Action, Inc.

NC

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting

Management recognizes the recurring nature of this issue and understands the value of appointing a Compliance Officer.

View Audit 388128

Finding 1174614 (2024-002)

Material Weakness 2024

Beverly Normandie Housing Corporation

CA

Subrecipient Monitoring HUD Housing Programs

Name of auditee: Beverly Normandie Housing Corporation HUD auditee identification number: CA16L000004 Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended December 31, 2024 CAP prepared by Name: Noel Sweizter Position: President, HDSI Management, Inc. Telephone n...

Name of auditee: Beverly Normandie Housing Corporation HUD auditee identification number: CA16L000004 Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended December 31, 2024 CAP prepared by Name: Noel Sweizter Position: President, HDSI Management, Inc. Telephone number: 323-231-1107 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Finding 2024-002: The Corporation did not maintain a cash account for residents' security deposits in an amount greater than or equal to the outstanding balance of the residents' security deposit liability at all times during the year ended December 31, 2024. At December 31, 2024, the residents' security deposit cash account was underfunded by $11,052. Comments on the Finding and Each Recommendation: Management should establish a security deposit cash account and ensure the residents' security deposits cash account is adequately funded. Management should transfer funds from the Property's operating cash account to adequately fund the residents' security deposits cash accounts. Action(s) taken or planned on the finding: Management transferred operating funds to adequately fund the security deposit cash account on November 13, 2025.

View Audit 388124

Finding 1174613 (2024-001)

Material Weakness 2024

Beverly Normandie Housing Corporation

CA

HUD Housing Programs Subrecipient Monitoring

Name of auditee: Beverly Normandie Housing Corporation HUD auditee identification number: CA16L000004 Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended December 31, 2024 CAP prepared by Name: Noel Sweizter Position: President, HDSI Management, Inc. Telephone n...

Name of auditee: Beverly Normandie Housing Corporation HUD auditee identification number: CA16L000004 Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended December 31, 2024 CAP prepared by Name: Noel Sweizter Position: President, HDSI Management, Inc. Telephone number: 323-231-1107 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Finding 2024-001: The Corporation did not furnish HUD with a complete annual financial report within ninety (90) days following the year ended December 31, 2024. Additionally, Form SF-SAC Single Audit Date Collection Form for the year ended December 31, 2024 was not submitted to the federal audit clearinghouse in the required timeframe. Comments on the Finding and Each Recommendation: The Corporation should ensure the annual financial report to HUD and Form SF-SAC Single Audit Data Collection form are filed within the regulatory timeline. Action(s) taken or planned on the finding: The audited financial statements have been submitted to HUD and the federal clearinghouse. No further action is required.

View Audit 388124

Finding 1174603 (2024-001)

Material Weakness 2024

Town of Raymond

NH

Procurement, Suspension & Debarment Subrecipient Monitoring Allowable Costs / Cost Principles

Audit Finding Reference: 2024-001 Management’s Response and Planned Corrective Action: The Town of Raymond implemented an ‘Administration of Federal Grant Funds Policy’ on July 21, 2025. Name of Contact Person and Completion Date: Name 1: Julie Jenks (Finance Director) Anticipated Completion Date – ...

Audit Finding Reference: 2024-001 Management’s Response and Planned Corrective Action: The Town of Raymond implemented an ‘Administration of Federal Grant Funds Policy’ on July 21, 2025. Name of Contact Person and Completion Date: Name 1: Julie Jenks (Finance Director) Anticipated Completion Date – 7/21/2025

View Audit 388110

Finding 1174196 (2024-001)

Material Weakness 2024

Town of Blackstone, Massachusetts

MA

Subrecipient Monitoring Reporting Significant Deficiency

Recommendation: We recommend procedures be strengthened to file reports timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: In January of 2025 the Town received correspondence that the required compliance repor...

Recommendation: We recommend procedures be strengthened to file reports timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: In January of 2025 the Town received correspondence that the required compliance reports had not been filed with the Department of Treasury. The Town worked diligently to rectify the situation. The previous Town Administrator was the only employee with access to the portal or communications with the Department of Treasury so several notices were never received. The Town immediately worked with the SLFRF Program to add both the current Town Administrator, Chad Lovett and Assistant Town Administrator/Town Accountant Lauren Taylor to the portal for access. The Town then worked to complete the Annual Project & Expenditure Report for 2024 and submitted the completed report on March 13, 2025. Name(s) of the contact person(s) responsible for corrective action: Lauren Taylor Assistant Town Administrator/Town Accountant Chad Lovett Town Administrator Planned completion date for corrective action plan: Completed March 13, 2025.

View Audit 387913

Finding 1174137 (2024-001)

Material Weakness 2024

HOMES OF MONTCLAIR ECUMENICAL CORP

NJ

Eligibility Subrecipient Monitoring HUD Housing Programs

Management concurs with the finding. The Organization revised its tenant monitoring procedures to ensure timely annual recertification of income and compliance with HUD rent adjustment requirements. Training is being provided to all property management staff, and management has implemented procedure...

Management concurs with the finding. The Organization revised its tenant monitoring procedures to ensure timely annual recertification of income and compliance with HUD rent adjustment requirements. Training is being provided to all property management staff, and management has implemented procedures to ensure all required actions are taken when a tenant becomes over-income. As of December 14, 2024 lease agreements have been updated to include language that states once a tenant is over the income limit, they are considered ineligible and their rent will immediately be adjusted to the HUD market rent.

View Audit 387793

Finding 1174045 (2024-002)

Material Weakness 2024

Casa, INC and Subsidiaries

MD

Subrecipient Monitoring Eligibility Reporting § 200.512

Views of Responsible Officials: Management agrees and will plan to submit the June 30, 2025 Single Audit by March 31, 2026.

View Audit 387687

Finding 1174010 (2024-003)

Material Weakness 2024

Unified School District No. 465

KS

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Finding 2024-003 – COVID-19 Education Stabilization Fund Condition: Year-end financial reports contained errors related to the recording of receipts and expenditures for the major federal programs. Cause: The District did not have sufficient monitoring procedures in place to ensure accurate and time...

Finding 2024-003 – COVID-19 Education Stabilization Fund Condition: Year-end financial reports contained errors related to the recording of receipts and expenditures for the major federal programs. Cause: The District did not have sufficient monitoring procedures in place to ensure accurate and timely review of federal program financial activity. Corrective Action Plan: The District has taken and will continue to take the following corrective actions to address the identified weaknesses: 1. The District has hired and assigned staff with primary responsibility for federal grant management and compliance oversight. 2. Key personnel involved in federal program administration and accounting have received training related to federal grant requirements, internal controls, and monitoring procedures. 3. The District has implemented enhanced internal review procedures, including periodic reconciliation and supervisory review of federal program receipts and expenditures throughout the fiscal year. 4. Management will conduct ongoing monitoring of federal programs to ensure that financial activity is accurately recorded and reviewed prior to year-end reporting. 5. The District will continue to evaluate internal controls annually and adjust procedures as needed to maintain compliance with Uniform Guidance requirements.

View Audit 387676

Finding 1174009 (2024-002)

Material Weakness 2024

Unified School District No. 465

KS

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Finding 2024-002 – Special Education Cluster (IDEA) Condition: Year-end financial reports contained errors related to the recording of receipts and expenditures for the major federal programs. Cause: The District did not have sufficient monitoring procedures in place to ensure accurate and timely re...

Finding 2024-002 – Special Education Cluster (IDEA) Condition: Year-end financial reports contained errors related to the recording of receipts and expenditures for the major federal programs. Cause: The District did not have sufficient monitoring procedures in place to ensure accurate and timely review of federal program financial activity. Corrective Action Plan: The District has taken and will continue to take the following corrective actions to address the identified weaknesses: 1. The District has hired and assigned staff with primary responsibility for federal grant management and compliance oversight. 2. Key personnel involved in federal program administration and accounting have received training related to federal grant requirements, internal controls, and monitoring procedures. 3. The District has implemented enhanced internal review procedures, including periodic reconciliation and supervisory review of federal program receipts and expenditures throughout the fiscal year. 4. Management will conduct ongoing monitoring of federal programs to ensure that financial activity is accurately recorded and reviewed prior to year-end reporting. 5. The District will continue to evaluate internal controls annually and adjust procedures as needed to maintain compliance with Uniform Guidance requirements.

View Audit 387676

Finding 1173678 (2024-001)

Material Weakness 2024

The Utica Center for Development, Inc.

NY

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

Corrective Action Plan 12/22/2025 Oversight Agency: U.S. Department of Veterans Affairs The Utica Center for Development, INC. respectfully submits the following corrective action plan for the year ended December 31st, 2024. Independent Public Accounting Finn: D' Arcangelo & Co., LLP PO Box 4300 Rom...

Corrective Action Plan 12/22/2025 Oversight Agency: U.S. Department of Veterans Affairs The Utica Center for Development, INC. respectfully submits the following corrective action plan for the year ended December 31st, 2024. Independent Public Accounting Finn: D' Arcangelo & Co., LLP PO Box 4300 Rome, NY 13440 Finding: 2023-001 Federal Uniform Guidance Policies and Procedures Planned Action: We will develop required written policies and procedures as required by the 0MB's Uniform Guidance. Contact Responsible: Vincent Scalise Anticipated date of Completion: 2/1/2026

View Audit 387372

Finding 1173388 (2024-001)

Material Weakness 2024

Illuminate Colorado

CO

Subrecipient Monitoring § 200.331 § 200.332

Planned Corrective Action: Illuminate Colorado has developed a new process for properly identifying subrecipients and ensuring all required federal award identification information is included in each subaward prior to issuance. This process includes the use of an updated subaward checklist and mana...

Planned Corrective Action: Illuminate Colorado has developed a new process for properly identifying subrecipients and ensuring all required federal award identification information is included in each subaward prior to issuance. This process includes the use of an updated subaward checklist and management review prior to execution of subaward agreements. This process will be documented through a Standard Operating Procedure to ensure consistent implementation of the expectations. Standard Operating Procedure will include: ● Identification of federal funds as a required step in the preparation of all vendor contracts ● Completion of an internal Subaward Checklist for contracts that include the use of federal funds prior to execution ● Use of a standardized subaward contract template including required Federal award identification information ● Enhanced and documented Executive Leadership review and approval of contracts before execution Name of Contact Person: Jillian Fabricius, Co-Executive Director (jfabricius@illuminatecolorado.org) Anne Auld, Co-Executive Director (aauld@illuminatecolorado.org) Linda Robinson, Director of Finance (lrobinson@illuminatecolorado.org) Cindy Rojas, Contracts & Compliance Manager (crojas@illuminatecolorado.org) Anticipated completion date: January 30, 2026

View Audit 387067

Finding 1173363 (2024-561)

Material Weakness 2024

Holy Cross Head Start, INC

NY

Subrecipient Monitoring Matching / Level of Effort / Earmarking

The Organization has implemented new controls and staffing recently that are intended to remediate this matter.

View Audit 387018

Finding 1173286 (2024-002)

Material Weakness 2024

Justice Research and Statistics Association, Inc.

DC

Subrecipient Monitoring Reporting

Management acknowledges that FFATA subaward reporting was not submitted as required. The Organization plans to implement formal procedures to identify FFATA-reportable subawards and ensure timely submission of FFATA reports going forward. Management believes these corrective actions will address the...

Management acknowledges that FFATA subaward reporting was not submitted as required. The Organization plans to implement formal procedures to identify FFATA-reportable subawards and ensure timely submission of FFATA reports going forward. Management believes these corrective actions will address the deficiency.

View Audit 386832

Finding 1173187 (2024-006)

Material Weakness 2024

College of Micronesia - Fsm

FM

Student Financial Aid Special Tests & Provisions Subrecipient Monitoring

Finding 2024-06 - Special Tests and Provisions: Disbursements to or on Behalf of Students Recommendation The College should implement a comprehensive communication strategy to ensure that all students receive clear and timely notifications regarding their Title IV funds. This should include the deve...

Finding 2024-06 - Special Tests and Provisions: Disbursements to or on Behalf of Students Recommendation The College should implement a comprehensive communication strategy to ensure that all students receive clear and timely notifications regarding their Title IV funds. This should include the development of an award letter of college financing plans that outline the amount and type of funds, as well as the disbursement schedule. Additionally, the College should establish a monitoring system to ensure that credit balances are disbursed within the required 14-day time frame to maintain compliance with federal records. Response The College acknowledges the findings and has initiated a process to address them. A formal request has been submitted to the SIS program developer for the implementation of a notification feature. The SIS vendor has confirmed development will be completed by July 1, 2025. This feature will ensure that students receive email notifications when they are awarded and reimbursed for any overpayments. Furthermore, we will establish an enhanced level of monitoring to ensure that credit balances are disbursed within the designated 14-day timeframe. Contact: Comptroller Completion Date: September 30, 2025

View Audit 386639

Finding 1173186 (2024-005)

Material Weakness 2024

College of Micronesia - Fsm

FM

Student Financial Aid Subrecipient Monitoring Special Tests & Provisions

Finding 2024-05 - Special Tests and Provisions: Gramm-Leach-Bliley Act-Student Information Security Recommendation The College should develop and implement a comprehensive GLBA information security program that includes risk assessments, safeguards, and regular testing and monitoring of the effectiv...

Finding 2024-05 - Special Tests and Provisions: Gramm-Leach-Bliley Act-Student Information Security Recommendation The College should develop and implement a comprehensive GLBA information security program that includes risk assessments, safeguards, and regular testing and monitoring of the effectiveness of these safeguards. A qualified individual with the necessary expertise and authority to oversee the GLBA information security program should also be designated. Provide training to relevant staff on GLBA requirements and the importance of information security. Conduct periodic reviews and updates of the information security program to ensure ongoing compliance with GLBA requirements. Response The college acknowledges the finding and will strengthen its student information security by implementing the following: 1. Designate a qualified Information Security Officer from within the IT Division or recruit externally if internal capacity is limited. 2) Develop a GLBA compliance program that includes: • Annual risk assessments • Implementation of administrative, technical, and physical safeguards • Staff training on data privacy • Annual testing of the security protocols Contact: Vice President for Institutional Effectiveness & Quality Assurance (VPIEQA) Completion Date: September 30, 2025

View Audit 386639

Finding 1173164 (2024-002)

Material Weakness 2024

The Mount St. James Housing Development Fund Company, Inc.

NY

Subrecipient Monitoring Reporting § 200.512

Finding #2024-002 Prior Year Reporting Package and Data Collection Not Filed Timely: Recommendation: We recommend that management implement procedures to ensure that reporting packages and data collection forms are filed timely in the future. Action taken: The Mount St. James Apartments agrees with ...

Finding #2024-002 Prior Year Reporting Package and Data Collection Not Filed Timely: Recommendation: We recommend that management implement procedures to ensure that reporting packages and data collection forms are filed timely in the future. Action taken: The Mount St. James Apartments agrees with the auditor’s recommendations and will implement procedures to ensure timely filing in the future. For questions regarding this corrective action plan, please contact John Lutz, Vice President of Financial Strategy, at (315) 424-1821.

View Audit 386594

Finding 1173163 (2024-001)

Material Weakness 2024

The Mount St. James Housing Development Fund Company, Inc.

NY

Subrecipient Monitoring Reporting § 200.512

Finding #2024-001 Current Year Reporting Package and Data Collection Not Filed Timely: Recommendation: We recommend that management implement procedures to ensure that reporting packages and data collection forms are filed timely in the future. Action taken: The Mount St. James Apartments agrees wit...

Finding #2024-001 Current Year Reporting Package and Data Collection Not Filed Timely: Recommendation: We recommend that management implement procedures to ensure that reporting packages and data collection forms are filed timely in the future. Action taken: The Mount St. James Apartments agrees with the auditor’s recommendations and will implement procedures to ensure timely filing in the future. For questions regarding this corrective action plan, please contact John Lutz, Vice President of Financial Strategy, at (315) 424-1821.

View Audit 386594

Finding 1173038 (2024-003)

Material Weakness 2024

Louisiana Housing Corporation

LA

Reporting Subrecipient Monitoring HUD Housing Programs

Management concurs with the finding. The Authority has developed a Compliance Reporting Schedule listing all required federal reporting submissions, their due dates, and the responsible staff. Calendar reminders and verification checkpoints have been implemented to ensure timely submissions. In addi...

Management concurs with the finding. The Authority has developed a Compliance Reporting Schedule listing all required federal reporting submissions, their due dates, and the responsible staff. Calendar reminders and verification checkpoints have been implemented to ensure timely submissions. In addition, the Authority will conduct quarterly internal audits to confirm adherence to HUD reporting requirements. Management anticipates full corrective action by December 2025.

View Audit 386466

Finding 1172839 (2024-002)

Material Weakness 2024

West Bolivar Consolidated School District

MS

Equipment & Real Property Management Procurement, Suspension & Debarment Subrecipient Monitoring

2024-002 a. Name of Contact Person Responsible for Corrective Action: Dr. Chelsa Rash – Business Manager b. Corrective Action Planned: We will implement policies or procedures to establish an internal control system that will ensure strong financial accountability and to ensure compliance with all s...

2024-002 a. Name of Contact Person Responsible for Corrective Action: Dr. Chelsa Rash – Business Manager b. Corrective Action Planned: We will implement policies or procedures to establish an internal control system that will ensure strong financial accountability and to ensure compliance with all state and federal grant requirements. c. Anticipated Completion Date: Immediately.

View Audit 386184

Finding 1172767 (2024-005)

Material Weakness 2024

The Young Men's Christian Association of Central Ohio

OH

Allowable Costs / Cost Principles Subrecipient Monitoring Cash Management § 200.302 § 200.403

Finding Number: 2024-005 Anticipated Completion Date: March 31, 2026 Responsible Contact Person: Brad McCain, Chief Financial Officer Planned Corrective Action: Management is strengthening controls over tracking, documenting, and reconciling federal grant expenditures to ensure compliance with perio...

Finding Number: 2024-005 Anticipated Completion Date: March 31, 2026 Responsible Contact Person: Brad McCain, Chief Financial Officer Planned Corrective Action: Management is strengthening controls over tracking, documenting, and reconciling federal grant expenditures to ensure compliance with period of performance requirements. Actions include implementing improved grant-level tracking within the financial system, reconciling general ledger activity to reimbursement invoices and the SEFA on a routine basis, and retaining documentation to support the allowability and timing of costs charged to federal programs. Management will also formalize procedures for payroll reallocations across programs to ensure traceability and compliance with grant requirements. Documentation will be required to be attached to all journal transactions demonstrating the linkage between the underlying payroll records to the correct grant programs.

View Audit 386041

Corrective Action Plans

Filters