Corrective Action Plans

Finding 1220192 (2025-013)

Material Weakness 2025

DC

Student Financial Aid Matching / Level of Effort / Earmarking § 200.303

The University of the District of Columbia (UDC) agrees with the conditions and recommendations of this finding. Management action plan includes the following steps: • The Office of the Registrar will continue to use National Student Clearinghouse third party reporting tool to report enrollment data...

The University of the District of Columbia (UDC) agrees with the conditions and recommendations of this finding. Management action plan includes the following steps: • The Office of the Registrar will continue to use National Student Clearinghouse third party reporting tool to report enrollment data to NSLDS. • The Office of the Registrar continues to utilize the "Submission schedule tool" to keep us compliant with the timeframe required for submission of the reports. • Students who have been reported during the first week of courses as "Never Attended - NA" will be dropped from their courses for the term no more than 1 week after the end of attendance verification. • The Enrollment Time Status (Full Time, Part Time, etc.) for student who are enrolled in Summer courses will be updated effective immediately.

View Audit 405318

Finding 1220188 (2025-012)

Material Weakness 2025

Government of the District of Columbia

DC

Internal Control / Segregation of Duties Questioned Costs Special Tests & Provisions § 200.303

The University of the District of Columbia (UDC) agrees with the conditions and recommendations of this finding. Management action plan includes the following steps: The Office of Financial Aid is implementing enhanced controls to strengthen the accuracy and timeliness of its Return of Title IV Fund...

The University of the District of Columbia (UDC) agrees with the conditions and recommendations of this finding. Management action plan includes the following steps: The Office of Financial Aid is implementing enhanced controls to strengthen the accuracy and timeliness of its Return of Title IV Funds (R2T4) processes. Moving forward, all official and unofficial R2T4 calculations will be subject to more comprehensive review, replacing the prior practice of reviewing a limited sample. To further support compliance and coordination, automated email notifications will be issued to designated staff responsible for both loan and Pell Grant reporting whenever an R2T4 is processed. This will ensure timely awareness and appropriate action by all relevant parties. In addition, staff calendars will be updated to include critical regulatory deadlines associated with the return of Title IV funds. These calendar controls are intended to reinforce adherence to federal requirements and promote consistency across all cases. These measures are designed to improve oversight, enhance internal controls, and ensure full compliance with federal Title IV regulations. The Office of Financial Aid acknowledges that elements of these controls had been previously identified and implemented; however, these processes will be further strengthened, formalized, and consistently applied to ensure full compliance with federal Title IV regulations.

View Audit 405318

Finding 1220184 (2025-011)

Material Weakness 2025

Government of the District of Columbia

DC

Internal Control / Segregation of Duties Questioned Costs Special Tests & Provisions § 200.303

The University of the District of Columbia (UDC) agrees with the conditions and recommendations of this finding. Management action plan includes the following steps: • The Bursar or designee shall run a report daily of all Title IV disbursements that occurred on the prior business day. • The Bursar ...

The University of the District of Columbia (UDC) agrees with the conditions and recommendations of this finding. Management action plan includes the following steps: • The Bursar or designee shall run a report daily of all Title IV disbursements that occurred on the prior business day. • The Bursar or designee will run a report for Title IV funding awarded the previous day for the terms shown on the disbursement report above and select students who had a Title IV disbursement based upon the report above. • The students with the disbursements shall be reviewed in addition to any other student shown having a Title IV Credit balance to determine if a non-refunded Title IV credit balance exist. • Where a non-refunded Title IV credit balance exist, the student shall be included in the list of refunds named Refund Review Report dd/mm/yyyy to be processed following the institution refund process for Title IV Credit Balances. • At the end of the day, the Bursar or designee shall generate a report showing the refunds entered in the system for that day and confirm all previously identified Title IV refunds credit balance refunds were completed and attach said report to the refund review report and save in a designated folder. • The Bursar or designee will complete the batch release process daily to allow refund entered on student records to be transmitted to AP following institutional process. • On the AP check run date, the Bursar or designee shall review the check run notification from AP to confirm all refunds entered in the system since last check run date have been processed successfully. • We will conduct collective training with staff involved in student credit processing as it pertains to Department of Education regulations. Additionally, we will train Staff to ensure understanding of the Corrective Action Plan (CAP) to be taken.

View Audit 405318

Finding 1220180 (2025-010)

Material Weakness 2025

Government of the District of Columbia

DC

Student Financial Aid Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303

The University of the District of Columbia (UDC) agrees with the conditions and recommendations of this finding. Management action plan includes the following steps: The Office of Financial Aid has recognized irregularities in the student disbursement notification process. The office currently utili...

The University of the District of Columbia (UDC) agrees with the conditions and recommendations of this finding. Management action plan includes the following steps: The Office of Financial Aid has recognized irregularities in the student disbursement notification process. The office currently utilizes Banner Communication Management (BCM) as the primary system for delivering required notifications to students. While this system has historically functioned effectively, recent observations indicated inconsistencies that impacted the timely delivery of certain required notices. In response, the office will initiate enhancements to its notification procedures. Specifically, we will implement a supplementary notification process that will include the use of our new platform, Salesforce. The use of Salesforce should help to provide a reliable communication system for our messages. This dual process approach is intended to strengthen reliability and provide redundancy in the delivery of required communications. These improvements are designed to ensure that all disbursement notifications are transmitted within required timeframes, in full compliance with federal Title IV regulations.

View Audit 405318

Finding 1220176 (2025-009)

Material Weakness 2025

Government of the District of Columbia

DC

Student Financial Aid Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303

The University of the District of Columbia (UDC) agrees with the conditions and recommendations of this finding. The Office of Financial Aid experienced staff turnover, which impacted the timeliness of reporting submissions to the Common Origination and Disbursement (COD) system. This challenge was ...

The University of the District of Columbia (UDC) agrees with the conditions and recommendations of this finding. The Office of Financial Aid experienced staff turnover, which impacted the timeliness of reporting submissions to the Common Origination and Disbursement (COD) system. This challenge was further compounded by the need to train and cross-train staff to ensure continuity in reporting responsibilities. To address this issue, the office has identified and trained two staff members who are capable of originating and submitting enrollment reporting to COD. Additionally, we have implemented enhanced internal controls, including weekly reporting processes, to ensure compliance with all required deadlines. These measures are designed to ensure that records are submitted within the mandated 15-day timeframe.

View Audit 405318

Finding 1220172 (2025-008)

Material Weakness 2025

Government of the District of Columbia

DC

Subrecipient Monitoring Questioned Costs Procurement, Suspension & Debarment § 200.303

The Office of the Deputy Mayor for Planning and Economic Development (DMPED) concurs with the auditor’s findings and recommendations. Create clear communications and instructions for DMPED grant administrators to include as a required reporting responsibility. Add internal controls and policies that...

The Office of the Deputy Mayor for Planning and Economic Development (DMPED) concurs with the auditor’s findings and recommendations. Create clear communications and instructions for DMPED grant administrators to include as a required reporting responsibility. Add internal controls and policies that include a supervisory review of the report information before it is submitted to the System for Award Management (sam.gov) website.

View Audit 405318

Finding 1220171 (2025-007)

Material Weakness 2025

Government of the District of Columbia

DC

Procurement, Suspension & Debarment § 200.303 § 200.318

The Department of General Services (DGS) and Department of Parks and Recreation (DPR) management concur with the findings. To ensure full compliance with federal and district procurement requirements, DGS will implement a standardized procurement compliance checklist that mandates the retention of s...

The Department of General Services (DGS) and Department of Parks and Recreation (DPR) management concur with the findings. To ensure full compliance with federal and district procurement requirements, DGS will implement a standardized procurement compliance checklist that mandates the retention of suspension and debarment verification documentation for all covered transactions. This will include confirmation of SAM.gov checks and other related tax compliance documents. Procurement staff will receive targeted refresher training on federal and district documentation and record-retention standards. Additionally, DGS will conduct internal reviews of procurement files to validate compliance and immediately address any deficiencies identified.

View Audit 405318

Finding 1220170 (2025-006)

Material Weakness 2025

Government of the District of Columbia

DC

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking Subrecipient Monitoring § 200.303 § 200.403

The Office of the Deputy Mayor for Planning and Economic Development (DMPED) does not concur with the auditor’s finding regarding the allowability of subtenant improvement allowance per the CPF guidance. DMPED has sought express approval from the Federal awarding agency (U.S. Department of Treasury)...

The Office of the Deputy Mayor for Planning and Economic Development (DMPED) does not concur with the auditor’s finding regarding the allowability of subtenant improvement allowance per the CPF guidance. DMPED has sought express approval from the Federal awarding agency (U.S. Department of Treasury) regarding the use of funds. DMPED has evaluated its procedures to ensure only allowable expenses are charged to the program as required under 2 CFR Section 200.403. DMPED determined in FY25 that it needed to seek approval from the awarding Federal agency on allowable costs, which it completed in 2026.

View Audit 405318

Finding 1220169 (2025-005)

Material Weakness 2025

Government of the District of Columbia

DC

Reporting Internal Control / Segregation of Duties § 200.302 § 200.303

DC Government Operations is committed to full compliance going forward and has developed the following corrective action plan in coordination with the Office of the Chief Financial Officer. Step 1 — Retroactive Completion of FY2025 SF-425 The DC Government Operations Grants Management Specialist, in...

DC Government Operations is committed to full compliance going forward and has developed the following corrective action plan in coordination with the Office of the Chief Financial Officer. Step 1 — Retroactive Completion of FY2025 SF-425 The DC Government Operations Grants Management Specialist, in coordination with the OCFO, will compile all required financial data and complete the SF-425 Federal Financial Report for the fiscal year ended 30 Sept 2025. This includes reconciling cumulative expenditures against federal award records, ensuring all figures are supported by source documentation, and obtaining supervisory review and Director approval prior to submission. Target completion: September 2026. Step 2 — Assignment of Ongoing Reporting Responsibility The Grants Management Specialist is hereby designated as the party responsible for the preparation and timely submission of the SF-425 for all active cooperative agreements within DC Government Operations. The OCFO will provide technical review and certification before each submission. This assignment will be documented in writing and reflected in updated position responsibilities. Step 3 — Update of the Existing Reporting Calendar DC Government Operations maintains an existing Cooperative Agreement Grants reporting calendar that will be updated to incorporate all SF-425 submission deadlines for each active award. The calendar will include 90-day, 60-day, and 30-day advance notification triggers assigned to the Grants Management Specialist, with escalation to the CAO and Director if deadlines are at risk. The updated calendar will be reviewed and approved by the Director no later than July 31, 2026. Step 4 — Development of a Standard Operating Procedure The Grants Management Specialist will develop a written SOP governing the end-to-end SF-425 process, to include: data gathering from OCFO, reconciliation against billing authorizations, supervisory review, Director approval, submission to the federal awarding agency, and retention of submission confirmation as audit evidence. The SOP will be reviewed by the CAO, finalized, and placed into the DC Government Operations grants compliance library no later than August 31, 2026. Step 5 — Coordination with GOR and USPFO DC Government Operations will initiate a formal coordination meeting with the Grants Officer Representative and the U.S. Property and Fiscal Officer to align on all federal reporting requirements under the cooperative agreement going forward. This meeting will produce a shared reporting expectations document to ensure all parties are operating from the same compliance framework. Target: July 2026.

View Audit 405318

Finding 1220168 (2025-004)

Material Weakness 2025

Government of the District of Columbia

DC

Cash Management § 200.302 § 200.303 § 200.305

DC Government Operations (DCGO) concurs with this finding and acknowledges the deficiencies identified during the audit period. The corrective action plan below assigns responsibility accordingly and includes a designated section for OCFO’s response. Condition 1 — DCGO will establish a formal monthl...

DC Government Operations (DCGO) concurs with this finding and acknowledges the deficiencies identified during the audit period. The corrective action plan below assigns responsibility accordingly and includes a designated section for OCFO’s response. Condition 1 — DCGO will establish a formal monthly drawdown coordination meeting between the Grants Management Specialist and the OCFO to align on report readiness and submission timelines. DCGO will also update its grants reporting calendar to include monthly SF-270 submission deadlines with 30-day and 15-day advance triggers. The Grants Management Specialist will track submission status in real time and escalate to the CAO when deadlines are at risk. Condition 2 — DCGO will implement a monthly grant activity checklist requiring the Grants Management Specialist to confirm that all active awards, including the Facility Sustainment Restoration Modernization project, are represented in each drawdown cycle. Any award with no drawdown activity will require documented justification reviewed by the CAO before the cycle closes. Condition 3 — This condition is squarely within the DCGO lane, and we take full accountability. Effective immediately, the following controls will be implemented: The Grants Management Specialist will route every SF-270 through a documented approval workflow requiring CAO review and Director signature before submission. No SF-270 will be submitted to the GOR or USPFO without confirmed Director approval on record. Upon submission, the Grants Management Specialist will retain timestamped confirmation of submission, via DC Gov BOX, as permanent audit evidence in the grants compliance file. The DCGO SOP governing SF-270 preparation and routing will be updated to codify these steps no later than August 31, 2026. Condition 4 — DCGO will implement a pre-submission reconciliation checkpoint requiring the Grants Management Specialist to perform a line-by-line comparison between the billing authorization worksheet and the corresponding SF-270 before routing for Director approval. Any variance must be documented, explained, and resolved prior to submission. This reconciliation step will be captured as a required sign-off in the updated SOP. Condition 5 — DCGO will require that every SF-270 be traceable to an approved billing authorization worksheet before processing. The Grants Management Specialist will maintain a master award register cross-referencing all active grants against billing authorizations each cycle. Any SF-270 that cannot be matched to an authorized billing entry will be flagged and held pending resolution with Cooperative Agreement Program Manager (CAPM) and Director review. Condition 6 — DCGO will establish a cash receipt tracking log maintained by the Grants Management Specialist. Following each SF-270 submission, the GMS will monitor federal payment confirmation and document receipt in the log within 5 business days of funds being received. Unconfirmed receipts beyond 30 days of submission will be escalated to the CAO for follow-up with the GOR and USPFO.

View Audit 405318

Finding 1220167 (2025-003)

Material Weakness 2025

Government of the District of Columbia

DC

Reporting Subrecipient Monitoring § 200.303 § 200.502 § 200.510

The Office of the State Superintendent of Education (OSSE) concurs with the auditor’s finding and recommendations related to this finding. This oversight occurred during the transition to the new corrective action plan instituted during the prior fiscal year. OSSE is confident in its new review proc...

The Office of the State Superintendent of Education (OSSE) concurs with the auditor’s finding and recommendations related to this finding. This oversight occurred during the transition to the new corrective action plan instituted during the prior fiscal year. OSSE is confident in its new review process of FFATA that will prevent the underlying reporting issue from recurring. OCFO concurs with the auditor’s finding. The original classification reflected OCFO’s judgment during report compilation rather than lack of control. Based on the initial analysis, the OCFO had not bifurcated the amount of the subrecipients’, School Food Authorities (SFAs) and Food Service Program Sponsors (SFSPs), expenditures in the SEFA under the Passed Through to Subrecipients column. CNC program operated as a reimbursement mechanism where School Food Authorities (SFAs) and Summer Food Services Program (SFSP) Sponsors received payments as Subrecipients. Subsequently reviewed, OCFO bifurcated the related expenditure in the SEFA, which resulted in updating the SEFA accordingly. OCFO remains committed to complying with its policies and procedures and will implement an additional layer of review to ensure the accuracy of the SEFA.

View Audit 405318

Finding 1220162 (2025-002)

Material Weakness 2025

Government of the District of Columbia

DC

Internal Control / Segregation of Duties Questioned Costs Special Tests & Provisions § 200.303

The Office of the Chief Financial Officer/Office of Finance and Treasury (OCFO/OFT) for Department of Human Services (DHS) concurs with this finding. Quarterly UPO internal audits and Quarterly Regis audits will continue to assist in identifying areas of noncompliance and improvement. In addition, t...

The Office of the Chief Financial Officer/Office of Finance and Treasury (OCFO/OFT) for Department of Human Services (DHS) concurs with this finding. Quarterly UPO internal audits and Quarterly Regis audits will continue to assist in identifying areas of noncompliance and improvement. In addition, the EBT Manager and Supervisors will implement enhanced review and validation procedures of daily card production documentation, including targeted quality checks and supervisory oversight, to ensure alignment with established requirements. Employees will be held accountable for performing in accordance with documented procedures, and corrective actions will be applied as needed to address gaps. These efforts are intended to improve consistency, reduce risk, and ensure sustained compliance with program requirements.

View Audit 405318

Finding 1220160 (2025-001)

Material Weakness 2025

Government of the District of Columbia

DC

Eligibility Reporting Matching / Level of Effort / Earmarking § 200.303

The Department of Human Services (DHS) and Department of Health Care Finance (DHCF) DC Access System (DCAS) team agree with the findings. For the twelve (12) findings, DHS/ESA has identified the description of the deficiencies, examined the magnitude and geographic extent of the deficiencies, identi...

The Department of Human Services (DHS) and Department of Health Care Finance (DHCF) DC Access System (DCAS) team agree with the findings. For the twelve (12) findings, DHS/ESA has identified the description of the deficiencies, examined the magnitude and geographic extent of the deficiencies, identified the actions completed to eliminate the deficiencies. The District will focus on efforts that will create the maximum impact, which includes creating new options for collaboration, streamlining current communication, and introducing cross-functional prioritization. These strategies will help the District move projects toward completion and are rooted in continuous quality improvement. To guide its strategic efforts and track its impact, DHS has outlined the following four phases of corrective action plans to be taken to ensure the deficiencies will be eliminated: • Review and Prioritization, • Design and Development, • Implementation, and • Monitor and Evaluation. Each phase has several process steps including a completion document that signals the permission to move to the next phase. The detailed process steps are documented under DHS’ Consolidated Semi-Annual SNAP Advance Warning Letter Corrective Action Plan and FFY2026 Quality Control Corrective Action Plan reports. The corrective action plan is facilitated by the Quality Improvement Program and since implementing this process in January 2021, the District has identified root causes for errors and gaps in internal auditing and evaluation processes. Therefore, the flow of the semi-annual corrective action plans reflects the District’s commitment to a collaborative corrective action plan - expanding the data analysis section to include data and analysis of internal methods, a complete summary of each phase completed, and a timeline for upcoming phase/project completion.

View Audit 405318

Finding 1220158 (2025-002)

Material Weakness 2025

United Planning Organization

DC

Questioned Costs Eligibility Significant Deficiency § 200.303 § 200.403

Finding 2025-002: Agency: U.S. Department of Health and Human Services (CSBG) Program: Community Service Block Grant (AL No. 93.569) Significant Deficiency and Noncompliance over Eligibility Condition: During our testing of participant eligibility for the CSBG program, we noted the following excepti...

Finding 2025-002: Agency: U.S. Department of Health and Human Services (CSBG) Program: Community Service Block Grant (AL No. 93.569) Significant Deficiency and Noncompliance over Eligibility Condition: During our testing of participant eligibility for the CSBG program, we noted the following exceptions out of a sample size of 40: (1) for one participant, the CSBG eligibility form was not signed by the case manager; and (2) for two participants, we were unable to obtain documentation to support proof of residence. Recommendation: We recommend that management strengthen internal controls over eligibility determination and documentation to ensure compliance with federal program requirements. Management should establish procedures to require complete and signed eligibility forms prior to approving or providing program benefits and consider implementing a standardized eligibility checklist to ensure all required supporting documentation (e.g., income verification, residency, other criteria) is obtained and retained. Auditee Response and Corrective Action Plan: UPOManagement acknowledges the audit finding and will ensure that staff follow established internal control activities to ensure compliance with CSBG participant eligibility. UPO will institute continuous training and increased monitoring of compliance by the internal Office of Performance Management regarding the review, retention, and documentation of eligibility determination evidence submitted by program participants. Anticipated Completion Date: September 30, 2026

View Audit 405313

Finding 1220156 (2025-001)

Material Weakness 2025

Memorial Hospital at Gulfport

MS

Internal Control / Segregation of Duties Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303 § 200.430

Management’s Action Plan: Management concurs with the findings. The deficiency was due to a lapse in management oversight related to the review and approval of independent contractor timesheets. To strengthen internal controls and ensure compliance with federal requirements, management has implement...

Management’s Action Plan: Management concurs with the findings. The deficiency was due to a lapse in management oversight related to the review and approval of independent contractor timesheets. To strengthen internal controls and ensure compliance with federal requirements, management has implemented corrective actions through the full implementation of a new enterprise resource planning system, Fusion. Under this process, all timecards are now entered, reviewed, and approved directly within Fusion and cannot be processed for payment unless they have been formally approved by appropriate management personnel. This ensures proper documentation, accountability, and adherence to internal control policies. Name of Person Responsible for the Plan: Katherine Hill, Manager of Accounting Jason Lynn, Vice President of Finance and Controller Anticipated Completion Date of the Plan: Completed – fully implemented with the rollout of the Fusion system (May 2025).

View Audit 405309

Finding 1220139 (2025-005)

Material Weakness 2025

Dallas County

TX

Special Tests & Provisions Questioned Costs Reporting § 200.303

Corrective action plan: Dallas County HCVP will expand inspection capacity by hiring additional full-time and contractual inspectors, including an Inspector Supervisor to ensure timely completion of all inspections. Additionally, the Housing Supervisor will review inspection status regularly to ensu...

Corrective action plan: Dallas County HCVP will expand inspection capacity by hiring additional full-time and contractual inspectors, including an Inspector Supervisor to ensure timely completion of all inspections. Additionally, the Housing Supervisor will review inspection status regularly to ensure compliance with HUDrelated inspection schedules. Increasing staffing levels will allow the program to meet HUD-required timeframes consistently and reduce the likelihood of delays. Implementation dates: September 30, 2026 Responsible persons: Kesete Yohannes, Assistant Director of Housing

View Audit 405307

Finding 1220138 (2025-004)

Material Weakness 2025

Dallas County

TX

HUD Housing Programs Special Tests & Provisions § 200.303

Corrective action plan: Dallas County HCVP will expand inspection capacity by hiring additional full-time and contractual inspectors, including an Inspector Supervisor, to ensure timely completion of all inspections within HUD-required timeframes. Increasing staffing levels will enable the program t...

Corrective action plan: Dallas County HCVP will expand inspection capacity by hiring additional full-time and contractual inspectors, including an Inspector Supervisor, to ensure timely completion of all inspections within HUD-required timeframes. Increasing staffing levels will enable the program to meet HUD-required timeframes consistently and reduce the likelihood of delays. Additionally, the Housing Supervisor will review inspection status regularly to ensure compliance with HUD-related inspection schedules. Implementation dates: September 30, 2026 Responsible persons: Kesete Yohannes, Assistant Director of Housing

View Audit 405307

Finding 1220137 (2025-003)

Material Weakness 2025

Dallas County

TX

Questioned Costs Subrecipient Monitoring Eligibility § 200.303

Corrective Action Plan: Dallas County HCVP leadership addressed EIV compliance during the April 2026 and May 2026 monthly staff meetings and will continue to emphasize the requirement. Review of meetings agendas dated April 22, 2026, and May 20, 2026, confirm that EIV compliance was discussed. Addit...

Corrective Action Plan: Dallas County HCVP leadership addressed EIV compliance during the April 2026 and May 2026 monthly staff meetings and will continue to emphasize the requirement. Review of meetings agendas dated April 22, 2026, and May 20, 2026, confirm that EIV compliance was discussed. Additionally, the HCVP Housing Supervisor issued an email to all staff reiterating the requirement to retain EIV reports for all transactions, including but limited to recertifications, interims, and relocations. Implementation Date: June 11, 2026 Responsible Party: Kesete Yohannes, Assistant Director of Housing

View Audit 405307

Finding 1220136 (2025-002)

Material Weakness 2025

Dallas County

TX

Subrecipient Monitoring § 200.303 § 200.332

Corrective action plan: The Ryan White Grants Management Division will ensure the addition of enhanced controls to the existing subaward agreement template. Implementation dates: August 30, 2026 Responsible persons: Sonya Hughes, Assistant Director, Ryan White Grants Compliance

View Audit 405307

Finding 1220102 (2025-005)

Material Weakness 2025

Scotts Bluff County School District No. 16 Gering Public Schools

NE

Allowable Costs / Cost Principles Questioned Costs Cash Management § 200.302 § 200.303

Child Nutrition Cluster – Assistance Listing No. 10.CNC Recommendation: We recommend the District implement a formal process requiring documented evidence of review and approval of all reimbursement requests prior to submission, such as dated sign-offs or electronic approval records, to strengthen i...

Child Nutrition Cluster – Assistance Listing No. 10.CNC Recommendation: We recommend the District implement a formal process requiring documented evidence of review and approval of all reimbursement requests prior to submission, such as dated sign-offs or electronic approval records, to strengthen internal controls and ensure compliance with Federal requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The District will provide formal documentation by reviewing and signing the claims for approval of reimbursement requests before submission to the state. Name(s) of the contact person(s) responsible for corrective action: Stacy Rodriguez Director of Finance Planned completion date for corrective action plan: September 2025

View Audit 405300

Finding 1220098 (2025-004)

Material Weakness 2025

Scotts Bluff County School District No. 16 Gering Public Schools

NE

Procurement, Suspension & Debarment § 200.303

Child Nutrition Cluster – Assistance Listing No. 10.CNC Recommendation: We recommend the District obtain certifications from vendors stating their organization is not suspended, debarred, or otherwise excluded from participation in federal assistance programs or document the procedures performed to ...

Child Nutrition Cluster – Assistance Listing No. 10.CNC Recommendation: We recommend the District obtain certifications from vendors stating their organization is not suspended, debarred, or otherwise excluded from participation in federal assistance programs or document the procedures performed to verify the vendor is not identified as suspended or debarred on SAM.gov. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We will ensure the process of suspension and debarment checks are performed prior to entering into contracts. Name(s) of the contact person(s) responsible for corrective action: Stacy Rodriguez Director of Finance Planned completion date for corrective action plan: September 2025

View Audit 405300

Finding 1220083 (2025-002)

Material Weakness 2025

Fulton Atlanta Community Action Authority, Inc.

GA

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303 § 200.430

Comment #2025-001 COMPENSATION METHODOLOGY SHOULD BE REVIEWED FOR INCENTIVE PAYMENTS COMMUNITY SERVICES BLOCK GRANT AND LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM FAL #93.569 and 93.568 Views of Responsible Officials and Planned Corrective Actions: Management concurs with the recommendation. FACAA up...

Comment #2025-001 COMPENSATION METHODOLOGY SHOULD BE REVIEWED FOR INCENTIVE PAYMENTS COMMUNITY SERVICES BLOCK GRANT AND LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM FAL #93.569 and 93.568 Views of Responsible Officials and Planned Corrective Actions: Management concurs with the recommendation. FACAA updated its Incentive Compensation Policy, which was approved by the Board of Directors, in accordance with 2 CFR 200.430 and 2 CFR 200.303. The policy establishes the methodology for incentive payments, and all incentive payments have been documented and supported by appropriate records to ensure compliance with applicable federal requirements. Implementation Date: Effective immediately, our policies have been enhanced to clarify and support our methodology used during the periods noted under review, and for all subsequent periods. Responsible Person(s): Dr. Howard Grant, President/CEO

View Audit 405272

Finding 1219674 (2025-004)

Material Weakness 2025

City of Long Beach

CA

HUD Housing Programs Eligibility Reporting § 200.303

Program: Section 8 Housing Choice Vouchers (HCV) Finding: 2025-004 Finding Title: Internal Controls Over Participants Reexaminations Identification as a repeat finding if applicable: 2024-007 Contact Person: Michelle Mel-Duch, Housing Administrative and Financial Services Officer, Health & Human Ser...

Program: Section 8 Housing Choice Vouchers (HCV) Finding: 2025-004 Finding Title: Internal Controls Over Participants Reexaminations Identification as a repeat finding if applicable: 2024-007 Contact Person: Michelle Mel-Duch, Housing Administrative and Financial Services Officer, Health & Human Services Department, (562) 570-5344, Michelle.Mel-Duch@longbeach.gov Planned Actions: HACLB has updated its SEMAP Quality Control sample size worksheet to ensure the minimum required sample size is calculated using the total number of assisted families, in accordance with HUD SEMAP Indicator 3 requirements. The revised worksheet will be used for future quality control reviews to ensure compliance with federal requirements. In addition, HACLB has transitioned to the MRI housing management software platform, which provides enhanced reporting capabilities to generate accurate listings of assisted families, support the selection and tracking of quality control samples. To strengthen internal controls, HACLB will implement and document completion of reviews of reexamination files selected for SEMAP quality control. Expected Completion Date: December 31, 2026

View Audit 405210

Finding 1219672 (2025-003)

Material Weakness 2025

City of Long Beach

CA

HUD Housing Programs § 200.303

Program: Section 8 Housing Choice Vouchers (HCV) Finding: 2025-003 Finding Title: Internal Controls over Compliance of Reinspection’s to Enforce Housing Quality Standards Identification as a repeat finding if applicable: 2024-005 Contact Person: Michelle Mel-Duch, Housing Administrative and Financia...

Program: Section 8 Housing Choice Vouchers (HCV) Finding: 2025-003 Finding Title: Internal Controls over Compliance of Reinspection’s to Enforce Housing Quality Standards Identification as a repeat finding if applicable: 2024-005 Contact Person: Michelle Mel-Duch, Housing Administrative and Financial Services Officer, Health & Human Services Department, (562) 570-5344, Michelle.Mel-Duch@longbeach.gov Planned Actions: Process Improvement for Reinspection Scheduling HACLB implemented an enhanced reinspection scheduling process designed to ensure that all reinspections are completed prior to the expiration of the required 30-day correction period. As part of this effort, HACLB configured its housing management software system (MRI) to generate and schedule reinspections upon identification of deficiencies. Compliance Monitoring HACLB utilizes MRI to identify and track cases where extensions have been requested or approved. The MRI functionality provides staff with visibility into extension requests while maintaining oversight of compliance requirements. Inspections staff reviews scheduling reports to monitor upcoming and overdue reinspections, verify completion of required inspections, and ensure timely follow-up on outstanding cases. Ongoing Monitoring and Quality Assurance To further strengthen compliance, inspections staff will conduct periodic reviews of payment hold reports to track approved extensions and to verify that all required reinspections have been scheduled. Any identified discrepancies will be promptly addressed through corrective action, staff coaching, and process improvements as necessary. Expected Completion Date: December 31, 2026

View Audit 405210

Finding 1219670 (2025-002)

Material Weakness 2025

City of Long Beach

CA

HUD Housing Programs Procurement, Suspension & Debarment Allowable Costs / Cost Principles § 200.303

Program: Section 8 Housing Choice Vouchers (HCV) Finding: 2025-002 Finding Title: Internal Controls and Compliance over the Timeliness of Housing Choice Voucher Participant Re-examination and Recertification Identification as a repeat finding if applicable: 2024-003 Contact Person: Michelle Mel-Duch...

Program: Section 8 Housing Choice Vouchers (HCV) Finding: 2025-002 Finding Title: Internal Controls and Compliance over the Timeliness of Housing Choice Voucher Participant Re-examination and Recertification Identification as a repeat finding if applicable: 2024-003 Contact Person: Michelle Mel-Duch, Housing Administrative and Financial Services Officer, Health & Human Services Department, (562) 570-5344, Michelle.Mel-Duch@longbeach.gov Planned Actions: Staffing Augmentation and Organizational Support HACLB has recruited additional Housing Specialists to support management of the high-volume Housing Choice Voucher (HCV) Program, improve processing efficiency, and ensure compliance with HUD requirements and program deadlines. HACLB has hired a Housing Administrative and Financial Services Officer and a Housing Operations Program Officer. These positions provide strategic oversight of program operations, staff productivity, workload management, resource allocation, and performance monitoring. As of June 23, 2026, eight Housing Specialists have been hired and have undergone training. HACLB has requested renewal of the supervisory eligibility list to fill several vacant supervisory positions critical to operational oversight and staff development. To further reduce the backlog, HACLB has reassigned duties and created a dedicated team responsible for tracking overdue recertifications, monitoring progress, and implementing measures to ensure ongoing compliance. Contracted Support Services To accelerate backlog reduction efforts, HACLB renewed its contract with an external agency to provide dedicated assistance with processing overdue reexaminations. Additionally, HACLB has initiated a competitive procurement process to secure supplemental third-party support services to assist with backlog clearance and provide additional operational capacity while newly hired staff complete training and onboarding. Technology Improvements HACLB has transitioned to a new housing management software platform (MRI PHA Pro) designed to improve annual recertification tracking, workflow management, reporting capabilities, and productivity monitoring. The software system provides: • Enhanced monitoring of annual recertification deadlines. • Improved workflow tracking and assignment management. • Dashboard reporting and exception monitoring. • Increased visibility into staff productivity and workload distribution. • Improved compliance monitoring Additional Actions Taken to Date HACLB has implemented several operational improvements to strengthen internal controls and maintain compliance: Process Improvements • Revised recertification workflows and assignment procedures. • Established productivity targets and performance expectations for Housing Specialists. • Utilized MRI dashboards and exception reports to identify overdue cases and trigger management escalation procedures. • Increased supervisory oversight of workload distribution and case processing. Data Monitoring and Oversight Program management and data analytics staff actively monitor program performance and backlog reduction efforts through: • Regular forecasting and workload analysis. • Prioritization of high-risk and overdue cases. • Exception reporting and trend monitoring. • Ongoing evaluation of staffing needs and productivity levels. Staff Training HACLB continues to provide training for both new and existing staff on: • HUD recertification requirements. • Timeliness standards. • Case processing procedures. • Workflow management and quality assurance practices. Expected Completion Date: December 31, 2026

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