Corrective Action Plans

Federal Agency Name: United States Department of Agriculture Assistance Listing Number: #10.766 Program Name: Community Facilities Loans and Grants Finding Summary: During our testing, there was no formal review separate from the preparer over the reserve fund reconciliation for the federal program ...

Federal Agency Name: United States Department of Agriculture Assistance Listing Number: #10.766 Program Name: Community Facilities Loans and Grants Finding Summary: During our testing, there was no formal review separate from the preparer over the reserve fund reconciliation for the federal program and there was no formal review of the balance in comparison to the required minimum reserve balance. Due to there being no formal review of the balance in comparison to the required minimum reserve balance, the reserve balance was underfunded as of June 30, 2025 in the amount of $17,486. Corrective Action Plan: We will implement additional control processes to ensure a formal review over the reserve fund reconciliation and a formal review of the balance in comparison to the required minimum reserve balance is completed by staff separate from the preparer. On November 28, 2025, the minimum reserve balance was fully funded at $358,800. Responsible Individual: Mandy Robinson, Administrator Anticipated Completion Date: 11/28/2025

View Audit 383405

Finding 1169881 (2025-002)

Material Weakness 2025

City of Hamtramck

MI

Reporting Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

The City will ensure that all activity is recorded timely related to Federal Drug Forfeitures so that the Equitable Sharing Agreement and Certification can be completed within 60 days of the City’s fiscal year end.

View Audit 383047

Finding 1169880 (2025-001)

Material Weakness 2025

City of Hamtramck

MI

Subrecipient Monitoring Reporting Significant Deficiency § 200.303

The City will work with its vendors and engineering/accounting personnel to ensure that invoices are submitted and paid as soon as possible following the end of each reporting period so that reporting deadlines to grantors are complied with in future periods.

View Audit 383047

Finding 1169763 (2025-001)

Material Weakness 2025

Hagerstown Community College

MD

Student Financial Aid Reporting Significant Deficiency § 200.303

U.S. Department of Education 2025-001: Special Tests and Provisions – NSLDS Enrollment Reporting Student Financial Aid Cluster – Assistance Listing No. 84.063, 84.268 Condition: During our testing of enrollment status reporting, we noted the change in enrollment status was not reported within 60 day...

U.S. Department of Education 2025-001: Special Tests and Provisions – NSLDS Enrollment Reporting Student Financial Aid Cluster – Assistance Listing No. 84.063, 84.268 Condition: During our testing of enrollment status reporting, we noted the change in enrollment status was not reported within 60 days. Recommendation: We recommend Hagerstown Community College reevaluate their procedures and review policies surrounding reporting status changes to NSLDS to ensure timely and accurate reporting. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Director of Financial Aid has contacted the National Student Clearinghouse (NSC) to assess whether any errors occurred during the file transmission process. As of the date of this submission, HCC has not received a response from NSC. Upon receipt of NSC’s findings, HCC will work collaboratively with NSC to identify the root cause of the error and implement corrective actions to prevent recurrence. HCC will continue to perform periodic spot checks of student records transmitted to NSC and subsequently reported to the National Student Loan Data System (NSLDS). Any discrepancies identified through these reviews will be addressed through coordinated corrective action by the Financial Aid, Registrar, and Institutional Effectiveness offices to ensure data accuracy and regulatory compliance. Name(s) of the contact person(s) responsible for corrective action: Dr. Charles M. Scheetz, Director of Financial Aid and W. Christopher Baer, Registrar Planned completion date for corrective action plan: June 30, 2026

View Audit 382851

Finding 1169713 (2025-002)

Material Weakness 2025

Esperanza Health Centers

IL

Reporting Internal Control / Segregation of Duties § 200.303

Health Center Program – Assistance Listing No. 93.224 & 93.527 Recommendation: CLA recommends that the Organization review its FFR to ensure that the grant drawdowns reconcile to the amount reported as federal share of expenditures and any carryover requests are done promptly. Explanation of disagre...

Health Center Program – Assistance Listing No. 93.224 & 93.527 Recommendation: CLA recommends that the Organization review its FFR to ensure that the grant drawdowns reconcile to the amount reported as federal share of expenditures and any carryover requests are done promptly. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Moving forward, we will require one person to prepare the FFR and another person to review prior to submission.. Name(s) of the contact person(s) responsible for corrective action: Ryan Gadia, CFO, and Juan Cardenas, Controller Planned completion date for corrective action plan: June 30, 2025

View Audit 382735

Finding 1169621 (2025-001)

Material Weakness 2025

Lake County Community College District

OH

Student Financial Aid Internal Control / Segregation of Duties Material Weakness § 200.303

Finding Number: 2025-001 Condition: There was a lack of internal controls in place related to the return of Title IV funds. Planned Corrective Action: The College has implemented procedures to verify that academic dates are entered accurately in Banner and confirmed by personnel other than those res...

Finding Number: 2025-001 Condition: There was a lack of internal controls in place related to the return of Title IV funds. Planned Corrective Action: The College has implemented procedures to verify that academic dates are entered accurately in Banner and confirmed by personnel other than those responsible for calculating and reviewing returns of Title IV funds. This should ensure the related calculations are complete and accurate, and the funds are returned in a timely manner. Contact person responsible for corrective action: David Cummins, Vice President for Administrative Services and College Treasurer Anticipated Completion Date: December 2025

View Audit 382603

Finding 1169245 (2025-001)

Material Weakness 2025

City of Central

LA

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

We have carefully reviewed the finding of Documentation of Internal Controls over Federal Awards. The City of Central concurs with the finding. City management recognizes the importance of maintaining current, comprehensive, and properly documented internal controls over federal awards in accordance...

We have carefully reviewed the finding of Documentation of Internal Controls over Federal Awards. The City of Central concurs with the finding. City management recognizes the importance of maintaining current, comprehensive, and properly documented internal controls over federal awards in accordance with 2 CFR part 200.303(a). The City acknowledges that while formal policies and procedures existed, they were not fully updated to reflect current Uniform Guidance requirements and did not sufficiently address all applicable compliance areas for the federal programs administered. The City will undertake a comprehensive review of its existing policies and procedures. Management will update and formalize internal control documentation over federal awards to ensure alignment with Uniform Guidance requirements and to address all relevant compliance areas applicable to the City’s federal programs. This process will include identifying key control activities, documenting responsibilities, and ensuring controls are properly designed and implemented. Additionally, management will increase awareness of Uniform Guidance requirements and internal controls documentation standards by providing resources to applicable staff. Management will continue to periodically review internal control documentation to ensure continued compliance as federal requirements change. Responsible Officials: Mayor Wade Evans; Suzonne Cowart, CPA; Michele Lobianco Anticipated Completion Date: February 2026

View Audit 382200

Finding 1169204 (2025-002)

Material Weakness 2025

South Spencer County School Corporation

IN

Allowable Costs / Cost Principles § 200.302 § 200.303 § 200.403

FINDING 2025-002 Finding Subject: COVID-19 - Education Stabilization Fund - Activities Allowed or Unallowed, Allowable Costs/Cost Principles Summary of Finding: The School Corporation was unable to provide proper documentation for 5 out of the 25 claims selected for control testing. The School Corpo...

FINDING 2025-002 Finding Subject: COVID-19 - Education Stabilization Fund - Activities Allowed or Unallowed, Allowable Costs/Cost Principles Summary of Finding: The School Corporation was unable to provide proper documentation for 5 out of the 25 claims selected for control testing. The School Corporation was unable to provide proper documentation to support the determination of the amount of the teachers total salary that was allocated to the federal award. Contact Person Responsible for Corrective Action: Melissa Raaf Contact Phone Number and Email Address: (812) 649-2591 / missy.raaf@sspencer.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: In the future the School Corporation will ensure that all proper documentation is saved in a binder or electronically. Anticipated Completion Date: Effective FY 2025/2026

View Audit 382071

Finding 1169201 (2025-001)

Material Weakness 2025

South Spencer County School Corporation

IN

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.1 § 200.303 § 200.317 § 200.318 § 200.319

FINDING 2025-001 Finding Subject: Child Nutrition Cluster - Procurement and Suspension and Debarment Summary of Finding: Procurement: For two vendors, the School Corporation did not obtain price or rate quotes as required. The School Corporation did not maintain documentation to support the rational...

FINDING 2025-001 Finding Subject: Child Nutrition Cluster - Procurement and Suspension and Debarment Summary of Finding: Procurement: For two vendors, the School Corporation did not obtain price or rate quotes as required. The School Corporation did not maintain documentation to support the rationale and justification to limit competition, and there was no documentation of the history of the Procurement which would include the rationale for the method of procurement, the selection of the vendor, and the basis for price. Suspension and Debarment: Two vendors were identified for which the School Corporation was required to verify the suspension and debarment status, however no such verification could be provided for audit. Contact Person Responsible for Corrective Action: Food Service Director, Joshua Deck Contact Phone Number and Email Address: (812) 649-2591 / josh.deck@sspencer.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Procurement: The Food Service Director will maintain a binder/Google Drive folder with documentation of price and/or rate quotes and documentation of the attempts made from at least three vendors that fall within the small purchase threshold. If price and/or rate quotes cannot be obtained from at least three vendors, documentation of the reasoning will be maintained. Suspension and Debarment: The Food Service Director will ensure that all vendors are not suspended or debarred by either ensuring the suspension and debarment verbiage is included in the contracts, providing a clause to the vendor to sign that they are not suspended or debarred, or checking the SAM.gov website. Documentation of these records will be maintained for audit. Anticipated Completion Date: Effective FY 2025/2026

View Audit 382071

Finding 1169044 (2025-002)

Material Weakness 2025

Lafayette School Corporation

IN

Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles § 200.208 § 200.303 § 200.403

FINDING 2025-002 Finding Subject: Special Education Cluster (IDEA)- Earmarking Summary of Finding: The School Corporation is a member of the Greater Lafayette Area Special Services Cooperative (Cooperative). During fiscal years 2023-2024, the Cooperative operated the special education programs and s...

FINDING 2025-002 Finding Subject: Special Education Cluster (IDEA)- Earmarking Summary of Finding: The School Corporation is a member of the Greater Lafayette Area Special Services Cooperative (Cooperative). During fiscal years 2023-2024, the Cooperative operated the special education programs and spent the federal money on behalf of all of its members. As the grant agreements were between the Indiana Department of Education (IDOE) and each member school, the School Corporation was responsible for ensuring and providing oversight of the Cooperative. However, there was inadequate oversight performed by the School Corporation in order to ensure compliance with the Matching, Level of Effort, Earmarking compliance requirement. The School Corporation did not have internal controls in place to ensure that the Cooperative complied with the earmarking requirements. The Cooperative did not have adequate procedures in place to ensure that the required level of expenditures for nonpublic school students with disabilities was met for each member school. The Cooperative did not have effective internal controls to ensure nonpublic school expenditures were appropriately identified and reported. The Non-Public Proportionate Share expenditures for the 22611-021-PN01, 22611-021-ARP, 22619-021-ARP, 23611-021-PN01, and 23619-021-PN01 grant awards could not be verified for the individual member schools. Total grant expenditures were posted as expended. The nonpublic proportionate share expenditures were determined by applying a percentage to the nonpublic school budgeted expenditures. As such, we were unable to identify if the minimum amount per the grant awards was expended and properly reported to the IDOE as required. The lack of internal controls and noncompliance were isolated to the 22611-021-PN01, 22611-021-ARP, 22619-021-ARP, 23611-021-PN01, and 23619-021-PN01 grant awards. Contact Person Responsible for Corrective Action: Lissa Stranahan Contact Phone Number and Email Address: (Phone) 765-771-6013 (Email) lstranahan@lsc.k12.in.us Views of Responsible Officials: We concur with the finding. The Greater Lafayette Area Special Services (GLASS)and Local Education Agency, Lafayette School Corporation, concur with the audit finding for Earmarking. GLASS did not have adequate procedures in place to ensure that the required level of expenditures for non-public school students with disabilities was met for each member school. The Cooperative did not have effective internal controls to ensure non-public school expenditures were appropriately identified and reported. The methodology used by the Cooperative to monitor non-public proportionate share expenditures was based upon a percentage for each school corporation that comprises the Cooperative rather than basing the expenditures off of the grant award for each non-public school within the geographical boundaries of the school corporations. While all proportionate share funds were expended, it was problematic in determining if the minimum amount per the grant awards was expended and properly reported prior to July 1, 2024. INDIANA STATE BOARD OF ACCOUNTS 28 Description of Corrective Action Plan: The former Director of GLASS retired June 30, 2023. Upon hire on July 1, 2023, the new director immediately implemented measures to correct the previous methodology used at GLASS. Non-public proportionate share funds are identified and reported based upon the grant award for each school corporation. The expenditures are based upon the geographical location of the non-public school and the corresponding public school corporation, not based upon the “home” school corporation of the student. This process was implemented and descriptions were included on the ledgers to identify non-public school proportionate share for grants that were initiated during the FY 2024-2025 school year. Anticipated Completion Date: The corrective action was already put into place on July 1, 2023 and implemented with FY 2024-2025. The audit finding reflects the previous grant cycle for 2022 grants and 2023 grants, which is prior to this action taken.

View Audit 381720

Finding 1169040 (2025-001)

Material Weakness 2025

River Forest Community School Corporation

IN

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.1 § 200.303 § 200.317 § 200.318 § 200.319

FINDING 2025-001 Finding Subject: Special Education Cluster (IDEA) - Procurement Contact Person Responsible for Corrective Action: Samantha Berrier Contact Phone Number and Email Address: 219-962-2909, sberrier@rfcsc.k12.in.us Views of Responsible Officials: We concur with the finding. Description o...

FINDING 2025-001 Finding Subject: Special Education Cluster (IDEA) - Procurement Contact Person Responsible for Corrective Action: Samantha Berrier Contact Phone Number and Email Address: 219-962-2909, sberrier@rfcsc.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The offices of the Northwest Indiana Special Education Cooperative (NISEC), on behalf of River Forest Community School Corporation, its member school, has implemented a corrective action plan to ensure that the proper methodology for procurement is followed. Additionally, a system of internal controls has been established to ensure that vendors are procured using the required methods. The Northwest Indiana Special Education Cooperative created a corrective action plan to develop procedures to obtain bids when any vendor will exceed the simplified acquisition threshold. As part of this corrective action plan they have included procedures to follow if a noncompetitive procurement would be applicable. These procedures include documenting the rationale for using this alternative method and requesting approval from the Board of School Trustees when doing so. Anticipated Completion Date: October 9th, 2024

View Audit 381719

Finding 1169014 (2025-002)

Material Weakness 2025

Rva Financial Federal Credit Union

VA

Reporting Allowable Costs / Cost Principles Material Weakness § 200.303

DEPARTMENT OF THE TREASURY CDFI Equitable Recovery Program (CDFI ERP) – Assistance Listing No. 21.033 Recommendation: We recommend that the Credit Union strengthen its internal controls by implementing procedures for transaction-level tracking of federal grant expenditures, maintaining contemporaneo...

DEPARTMENT OF THE TREASURY CDFI Equitable Recovery Program (CDFI ERP) – Assistance Listing No. 21.033 Recommendation: We recommend that the Credit Union strengthen its internal controls by implementing procedures for transaction-level tracking of federal grant expenditures, maintaining contemporaneous documentation to support allowability, training staff on federal compliance requirements, and conducting periodic internal reviews to ensure documentation standards are consistently met. These actions will help address the lack of support noted in the original SEFA and ensure future submissions are fully auditable and compliant. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management has updated the SEFA to include only expenditures with appropriate supporting documentation and has taken steps to strengthen internal controls. Name(s) of the contact person(s) responsible for corrective action: Cindy Lindsey, CEO Planned completion date for corrective action plan: December 2025

View Audit 381682

Finding 1168912 (2025-003)

Material Weakness 2025

Glencoe-Silver Lake Public Schools Isd No. 2859

MN

Reporting School Nutrition Programs Significant Deficiency § 200.303

CHILD NUTRITION CLUSTER - REPORTING Recommendation: Management should ensure their key controls are operating effectively and they should document the review and approval of all the reports. Explanation of Disagreement with Audit Findings: There is no disagreement with the audit finding. Action plan...

CHILD NUTRITION CLUSTER - REPORTING Recommendation: Management should ensure their key controls are operating effectively and they should document the review and approval of all the reports. Explanation of Disagreement with Audit Findings: There is no disagreement with the audit finding. Action planned/taken in response to finding: The District will evaluate its control processes in place prior to meal claims being reported to the state for reimbursement and ensure they properly review and approve the claims being reported prior to reporting them and document that approval. The District also understands the person reviewing and approving the claims to be reported should be different from the individual compiling that amount to be reported so two individuals are involved in the process. Name of the contact person responsible for corrective action: Trisha Zajicek, Director of Finance Planned completion date for corrective action plan: June 30, 2026

View Audit 381335

Finding 1168893 (2025-001)

Material Weakness 2025

Presbyterian Home for Children

AL

Reporting § 200.303

Corrective Action Plan for Findings and Questioned Costs for the Year Ended June 30, 2025 Presbyterian Home for Children respectfully submits the following corrective action plan for the year ended June 30, 2025. Name and address of independent public accounting firm: Borland Benefield, P.C. 800 Sha...

Corrective Action Plan for Findings and Questioned Costs for the Year Ended June 30, 2025 Presbyterian Home for Children respectfully submits the following corrective action plan for the year ended June 30, 2025. Name and address of independent public accounting firm: Borland Benefield, P.C. 800 Shades Creek Parkway, Suite 875 Birmingham, Alabama 35209 Audit Period: 7/1/2024 – 6/30/2025 The findings from the June 30, 2025, schedule of findings and questioned costs are discussed below. The finding is numbered consistently with the number assigned in the schedule. 2025-001 – Unaccompanied Children Program – ALN No. 93-676-Reporting – Internal Control (Significant Deficiency) Federal Program Information: Funding Agency: U.S. Department of Health and Human Services FALN: 93.676 Federal Award Identification Numbers: 90ZU0620 Award Year: January 1, 2024 – December 31, 2026 Recommendation: We recommend implementing controls to ensure all reports are filed timely and properly documented. Grantee Response and Corrective Action Plan: Management agrees with the finding. The Home promptly filed the FFRs on September 11, 2025 when made aware of the late filings. The Home designated the controller with responsibility for grant reporting, including quarterly Federal Financial Reporting (FFR), and will implement policies and procedures to ensure timely filing going forward starting with the October 15, 2025 filing deadline. Responsible Parties: Sam Allison, Controller Doug Marshall, President and CEO Anticipated Completion Date Corrective action will be implemented by the October 15, 2025 quarterly FFR due date. For any questions regarding this plan, please contact Sam Allison, Controller, or Doug Marshall, President and CEO, at 256-362-2114.

View Audit 381282

Finding 1168887 (2025-001)

Material Weakness 2025

Byers School District Number 32j

CO

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.303

Finding During the federal award audit, it was noted that while the District followed procurement guidelines and procedures in the DJB Federal Procurement Policy, it does not have an established suspension and debarment procedure. Condition The District currently lacks a documented process to verify...

Finding During the federal award audit, it was noted that while the District followed procurement guidelines and procedures in the DJB Federal Procurement Policy, it does not have an established suspension and debarment procedure. Condition The District currently lacks a documented process to verify that vendors and subrecipients are not suspended or debarred from doing business with federal agencies. Criteria Under 2 CFR 200.214, non-federal entities are prohibited from entering into contracts or subawards with parties that are suspended or debarred from participation in federal programs. Cause The absence of a formal written procedure to verify vendor status prior to award or contract execution. Effect Without a documented procedure, there is a risk that contracts could be awarded to suspended or debarred entities, resulting in noncompliance with federal regulations. Corrective Action The District will formally adopt a Suspension and Debarment Verification Procedure that outlines the required process for verifying all vendors and subrecipients before entering into any contract funded by federal awards. Staff will verify suspension and debarment status by checking the System for Award Management (SAM.gov) prior to contract execution and will maintain documentation of verification in the procurement file. The Business Services Department will complete training on the new procedure and documentation requirements. Responsible Party: Business Manager Completion Date: Procedure adoption and staff training by December 31, 2025

View Audit 381263

Finding 1168797 (2025-001)

Material Weakness 2025

School City of Hammond

IN

Special Tests & Provisions Subrecipient Monitoring Material Weakness § 200.303

FINDING 2025-001 Finding Subject: Annual Report Card, High School Graduation Rate – Special Test and Provisions Contact Person Responsible for Corrective Action: Marilyn Hampton, Supervisor of Student Services Contact Phone Number and Email Address: (219) 933-2461, ext.1048 mehampton@hammond.k12.in....

FINDING 2025-001 Finding Subject: Annual Report Card, High School Graduation Rate – Special Test and Provisions Contact Person Responsible for Corrective Action: Marilyn Hampton, Supervisor of Student Services Contact Phone Number and Email Address: (219) 933-2461, ext.1048 mehampton@hammond.k12.in.us Views of Responsible Officials: We concur with the finding and will implement a corrective action plan. Description of Corrective Action Plan: To ensure compliance with the requirements related to the grant agreement and the Special Test and Provisions Annual Report Card, High School Graduation rate compliance, the School City of Hammond will put into place an effective internal control system. The School City of Hammond will maintain an effective control system for withdrawals from each of the schools within the school system. At the time of withdrawal, a withdrawal form, along with a verified ID will be copied by the school’s registrar or designee. This withdrawal form must include the signatures of a parent and principal. This is the first step in the monitoring process. This system for withdrawals will also include placing a copy of the withdrawal form in the student information system (PowerSchool Attachments). The documentation that needs to be attached to the withdrawal form should include documents that show a Records Request, proof that the student withdrew to attend another school or educational program that results in the awarding of a high school diploma, has immigrated to another country, or is deceased. Upon completion of the withdrawal at the school, a copy of the documentation will be kept at the school, and the original documentation will be placed into the cumulative record. The school will forward a digital copy to Student Services. Upon receipt of the digital copy at Student Services, the administrator will review the file and will sign off to indicate that the record has been reviewed and is complete. To ensure this process is implemented with fidelity, training will take place on a yearly basis with administrators and office staff on the procedures that need to be followed during the withdrawal process. Anticipated Completion Date: 01/31/2026

View Audit 380936

Finding 1168764 (2025-005)

Material Weakness 2025

City of Pacific

MO

Procurement, Suspension & Debarment Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

Highway Planning and Construction - Assistance Listing No. 20.205 Recommendation: We recommend that the City evaluate its procedures and implement an additional control to ensure verifications checks are occurring prior to entering into contracts with a vendor. Explanation of disagreement with audit...

Highway Planning and Construction - Assistance Listing No. 20.205 Recommendation: We recommend that the City evaluate its procedures and implement an additional control to ensure verifications checks are occurring prior to entering into contracts with a vendor. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: With the recent filling of open positions and the execution of contracts with engineering firms, additional controls have been implemented to strengthen project review processes. Specifically, the hiring of a City Administrator and an Economic Development Director will enhance controls over new established process. Name(s) of the contact person(s) responsible for corrective action: Kim Barfield Planned completion date for corrective action plan: 12/29/25

View Audit 380864

Finding 1168645 (2025-001)

Material Weakness 2025

Yorktown Community Schools

IN

School Nutrition Programs Internal Control / Segregation of Duties Subrecipient Monitoring § 200.303

FINDING 2025-001 Information on the federal program: Subject: Child Nutrition Cluster - Internal Controls over Eligibility Federal Agency: Department of Agriculture Federal Program: School Breakfast Program, National School Lunch Program Assistance Listing Number: 10.553, 10.555 Federal Award Number...

FINDING 2025-001 Information on the federal program: Subject: Child Nutrition Cluster - Internal Controls over Eligibility Federal Agency: Department of Agriculture Federal Program: School Breakfast Program, National School Lunch Program Assistance Listing Number: 10.553, 10.555 Federal Award Numbers and Years (or Other Identifying Numbers): FY2024, FY2025 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Eligibility Audit Finding: Material Weakness Context: During the testing of internal controls over eligibility determinations for free and reduced meals, we noted there was no formal, documented review control in place. There is no documented, secondary review for the applications entered in the food service software which determines eligibility. Additionally, there was no documented review by School Corporation personnel of the Income Eligibility Guidelines used by the food service software which are updated on annual basis Contact Person Responsible for Corrective Action: Amber Swinehart, Food Services Director Contact Phone Number: 765-759-2592 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: The Food Services Director will provide evidence of review for the eligibility parameters from Titan at least once a year prior to the start of the school year Anticipated Completion Date: 6/30/2026

View Audit 380596

Finding 1168615 (2025-001)

Material Weakness 2025

Independent School District #194

MN

Procurement, Suspension & Debarment § 200.303 § 200.318 § 200.326

Child Nutrition Cluster – Assistance Listing No. 10.553 and 10.555 Recommendation: We recommend that the District review its procedures and controls over procurement to ensure that all procurements are documented such that a third party can clearly see and understand the detailed history of the proc...

Child Nutrition Cluster – Assistance Listing No. 10.553 and 10.555 Recommendation: We recommend that the District review its procedures and controls over procurement to ensure that all procurements are documented such that a third party can clearly see and understand the detailed history of the procurement. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The District will work with their departments utilizing federal dollars to ensure the proper procurement method is utilized for all procurements and that documentation of that process is retained so it is clear what considerations were made in the procurement decision. Name of the contact person responsible for corrective action: Bill Holmgren Planned completion date for corrective action plan: June 30, 2026

View Audit 380547

Finding 1168589 (2025-006)

Material Weakness 2025

City of Detroit, Michigan

MI

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Material Weakness § 200.303

Finding Number: 2025-006 Federal Program, Assistance Listing Number and Name: ALN 10.557, United States Department of Agriculture, WIC Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) Condition: Original Finding Description: The City applied indirect costs to the program...

Finding Number: 2025-006 Federal Program, Assistance Listing Number and Name: ALN 10.557, United States Department of Agriculture, WIC Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) Condition: Original Finding Description: The City applied indirect costs to the programs in a manner that did not align with the allocation methodology outlined in the 2022–2023 cost allocation plan submitted to MDHHS. Furthermore, the plan lacked explicit certification and contained minor errors and omissions. Contact Person Responsible for Corrective Action / Anticipated Completion Date: Regina Greear Terri Daniels Anticipated completion date: July 2026 Planned Corrective Action: Upon identification, the City worked with the Michigan Department of Health and Human Services (MDHHS) and obtained approval and acceptance of the indirect cost calculation. The City will continue to work with MDHHS to ensure full compliance. The City has initiated a review of its indirect cost allocation methodology to ensure compliance. Management is updating the cost allocation calculation to document the approved allocation method and ensure the method is in accordance with the approved plan. The City will also provide training to staff involved in the preparation, submission, and calculation of the indirect costs to ensure understanding requirements. The City will also provide training to staff involved in the preparation, submission, and calculation of the indirect costs to ensure understanding requirements.

View Audit 380442

Finding 1168587 (2025-005)

Material Weakness 2025

City of Detroit, Michigan

MI

Subrecipient Monitoring Cash Management Material Weakness § 200.303 § 200.305

Finding Number: 2025-005 Federal Program, Assistance Listing Number and Name: ALN 93.914, Department of Health and Human Services (HHS), HIV Relief Project Grants Condition: Original Finding Description: A lack of effective controls resulted in noncompliance with federal payment requirements, specif...

Finding Number: 2025-005 Federal Program, Assistance Listing Number and Name: ALN 93.914, Department of Health and Human Services (HHS), HIV Relief Project Grants Condition: Original Finding Description: A lack of effective controls resulted in noncompliance with federal payment requirements, specifically for payments made to subrecipients. Contact Person Responsible for Corrective Action / Anticipated Completion Date: Denise Fair Razo Regina Greear Terri Daniels Anticipated completion date: March 2026 Planned Corrective Action: The three payments made were paid one to two days after the 30 day reimbursement requirement. The City will review its subrecipient payment terms and implement additional processes to help ensure compliance with federal payment requirements.

View Audit 380442

Finding 1168586 (2025-004)

Material Weakness 2025

City of Detroit, Michigan

MI

Internal Control / Segregation of Duties Eligibility Subrecipient Monitoring § 200.303

Finding Number 2025-004 Federal Program, Assistance Listing Number and Name: ALN 14.239, Department of Housing and Urban Development, Home Investment Partnerships Program Condition: Original Finding Description: The City lacked adequate controls to ensure annual reviews were conducted in accordance ...

Finding Number 2025-004 Federal Program, Assistance Listing Number and Name: ALN 14.239, Department of Housing and Urban Development, Home Investment Partnerships Program Condition: Original Finding Description: The City lacked adequate controls to ensure annual reviews were conducted in accordance with its policy, limiting its ability to exercise proper oversight of eligibility determinations performed by the program’s contractor. Contact Person Responsible for Corrective Action / Anticipated Completion Date: Julie Schneider Anticipated completion date: July 2025 Planned Corrective Action: This finding is timing related and was resolved by the City during fiscal year. The City reviewed and updated its policies and procedures to help ensure proper segregation of duties and proper oversight of eligibility determination. Additional processes now have independent review of inspections after the program’s contractor to further support program compliance. Review responsibilities were put in place to help ensure determinations receive an independent secondary review by City staff. These changes were in place by year-end. The City will continue to monitor the program and review procedures to ensure continued compliance and to prevent the recurrence of similar timing-related issues. The City will continue to monitor the program and review procedures to ensure continued compliance and to prevent the recurrence of similar timing-related issues.

View Audit 380442

Finding 1168582 (2025-003)

Material Weakness 2025

City of Detroit, Michigan

MI

Internal Control / Segregation of Duties Subrecipient Monitoring § 200.303

Finding Number: 2025-003 Federal Program, Assistance Listing Number and Name: ALN 14.239, Department of Housing and Urban Development (HUD), Home Investment Partnerships Program Condition: Original Finding Description: The requirements mandate that units be inspected, deficiencies communicated, and ...

Finding Number: 2025-003 Federal Program, Assistance Listing Number and Name: ALN 14.239, Department of Housing and Urban Development (HUD), Home Investment Partnerships Program Condition: Original Finding Description: The requirements mandate that units be inspected, deficiencies communicated, and corrective actions taken promptly. However, controls over housing quality standards are not effectively designed, reflecting a persistent lack of segregation of duties necessary to ensure compliance. Furthermore, existing controls were insufficient to guarantee that HQS inspection requirements were met and that identified deficiencies were addressed in a timely manner. Contact Person Responsible for Corrective Action / Anticipated Completion Date: Julie Schneider Anticipated completion date: July 2025 Planned Corrective Action: During the fiscal year, the City reviewed and enhanced its internal controls over HQS inspections to strengthen oversight and segregation of duties. Process changes were implemented to ensure that inspections, documentation of deficiencies, follow-up actions, and certifications of completion have independent review and approval. In addition, management implemented monitoring procedures to track inspection schedules to help ensure HQS requirements are met in a timely manner.While corrective actions were initiated during the fiscal year, they were not fully implemented throughout the entire period. By year-end, the controls were in place. The City will continue to monitor these controls to ensure ongoing compliance and to prevent similar issues from recurring.

View Audit 380442

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