Corrective Action Plans

Finding 1175528 (2025-004)

Material Weakness 2025

TX

Matching / Level of Effort / Earmarking Subrecipient Monitoring § 200.303

Material weakness in internal control over compliance - Lack of control over monitoring of maintenance of effort Planned Corrective Action: The District is developing procedures to adequately monitor the calculation of maintenance of effort during the year. Program staff and business office personne...

Material weakness in internal control over compliance - Lack of control over monitoring of maintenance of effort Planned Corrective Action: The District is developing procedures to adequately monitor the calculation of maintenance of effort during the year. Program staff and business office personnel will meet regularly to identify any potential issues for noncompliance with maintenance of effort and develop a plan accordingly to ensure compliance is met. Staff training and utilization of the calculation tools provided by TEA will be provided to ensure all involved gain the necessary understanding. Responsible Contact Person: Farrah Jernigan, Chief Financial Officer Anticipated Completion Date: June 30, 2026

View Audit 389296

Finding 1175527 (2025-003)

Material Weakness 2025

Bay City Independent School District

TX

Matching / Level of Effort / Earmarking Subrecipient Monitoring § 200.303

Material weakness in internal control over compliance - Lack of control over monitoring of maintenance of effort Planned Corrective Action: The District is developing procedures to adequately monitor the calculation of maintenance of effort during the year. Program staff and business office personne...

Material weakness in internal control over compliance - Lack of control over monitoring of maintenance of effort Planned Corrective Action: The District is developing procedures to adequately monitor the calculation of maintenance of effort during the year. Program staff and business office personnel will meet regularly to identify any potential issues for noncompliance with maintenance of effort and develop a plan accordingly to ensure compliance is met. Staff training and utilization of the calculation tools provided by TEA will be provided to ensure all involved gain the necessary understanding. Responsible Contact Person: Farrah Jernigan, Chief Financial Officer Anticipated Completion Date: June 30, 2026

View Audit 389296

Finding 1175512 (2025-003)

Material Weakness 2025

Region III Workforce Investment Board of Kanawha County, Inc.

WV

Matching / Level of Effort / Earmarking Questioned Costs § 200.303

2025-003 EARMARKING U.S. Department of Labor Assistance Listing Number 17.258/17.259/17.278 Condition: During our testing of Earmarking requirements for Youth Activities, we noted that approximately 13 percent of Youth activity finds allocated to the local area, except for the local area expenditure...

2025-003 EARMARKING U.S. Department of Labor Assistance Listing Number 17.258/17.259/17.278 Condition: During our testing of Earmarking requirements for Youth Activities, we noted that approximately 13 percent of Youth activity finds allocated to the local area, except for the local area expenditures for administration, was used to provide paid and unpaid work experience, which is not in compliance with the provisions stated in the Uniform Grant Guidance under the WIOA Cluster for Youth Activities. Recommendation: We recommend that the Board regularly review the grant expenditures for each of its programs and activities to ensure that all requirements for earmarking within the Uniform Grant Guidance are met. Region 3 Action: the Board will conduct formal monthly reviews of all WIOA grant expenditures by program and funding stream. These reviews will compare actual expenditure to budget allocations and earmarking requirements to ensure compliance with Uniform Grant Guidance and WIOA statutory requirements. Financial staff will prepare monthly expenditure reports, which will then be reviewed and approved by the Executive Director and presented quarterly to the Finance Committee of the Board. The Finance Committee will document its review in meeting minutes. The Board believes these corrective measures strengthen internal controls and ensure ongoing compliance with federal grant requirements. We are committed to maintaining sound fiscal oversight and full adherence to all applicable WIOA and Uniform Grant Guidance requirements.

View Audit 389289

Finding 1175511 (2025-002)

Material Weakness 2025

Region III Workforce Investment Board of Kanawha County, Inc.

WV

Questioned Costs Eligibility Matching / Level of Effort / Earmarking § 200.303

2025-002 Eligibility- WIOA intake applications were not signed properly U.S. Department of Labor Assistance Listing Number 17.258/17.259/17.278 Condition: During our testing of WIOA participants, it was noted that for one of the six youth participants selected for testing the WIOA intake application...

2025-002 Eligibility- WIOA intake applications were not signed properly U.S. Department of Labor Assistance Listing Number 17.258/17.259/17.278 Condition: During our testing of WIOA participants, it was noted that for one of the six youth participants selected for testing the WIOA intake application was not signed by the case manager. Recommendation: We recommend that the Board thoroughly review all applications for Youth Activities to ensure that all required eligibility documentation is completed and properly approved. Region 3 Action:ln direct response to this finding, the Board developed and implemented a comprehensive Youth Eligibility Policy, effective February 25, 2025. This policy establishes clear and enforceable procedures to ensure that all youth participants are properly vetted prior to receiving WIDA-funded services.Specifically, the policy includes a dedicated "Eligibility Verification" and "Documents for Verifying WIOA Eligibility" section which requires that service providers confirm each individual meets all applicable WIOA eligibility requirements including age, selective service registration and citizenship status at the time of registration. The policy further requires that each participant file contain a completed application along with supporting documentation confirming general WIOA eligibility and all applicable Youth eligibility data elements. Additionally, all questions on the intake form must be fully answered and both the applicant and the intake staff member are required to sign the intake forms prior to the delivery of services. Primary Eligibility Review is the Local Board's program staff's responsibility to ensure all registration paperwork is complete and accurate before WIOA enrollment.The Board is confident that these policy requirements provide the necessary framework and controls to ensure consistent, documented eligibility verification across all service providers administering youth activities under WIOA. The Board will continue to monitor compliance with this policy through its oversight activities to ensure the controls remain effective on an ongoing basis.

View Audit 389289

Finding 1175510 (2025-001)

Material Weakness 2025

Region III Workforce Investment Board of Kanawha County, Inc.

WV

Questioned Costs Reporting Matching / Level of Effort / Earmarking § 200.303

2025-001 REPORTING-MACC reports did not contain evidence of supervisory approval Condition: For all MACC reports selected for testing, management was unable to provide adequate support that the reports were properly reviewed and approved prior to being submitted. Recommendation: We recommend that th...

2025-001 REPORTING-MACC reports did not contain evidence of supervisory approval Condition: For all MACC reports selected for testing, management was unable to provide adequate support that the reports were properly reviewed and approved prior to being submitted. Recommendation: We recommend that the Board design and implement controls to ensure that all required reporting is submitted accurately in a timely fashion, with proper review and approval prior to submission. Region 3 action: Although Region 3 has established a monthly checklist that is reviewed and signed off by Brenda Hunt CPA, it is a work in progress and ad ustments will be made to reflect an additional review and approval prior to submission.

View Audit 389289

Finding 1175483 (2025-002)

Material Weakness 2025

Pathfinder Services, Inc.

IN

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

Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has implemented various approval and documentation procedures.

View Audit 389278

Finding 1175480 (2025-003)

Material Weakness 2025

Knox College

IL

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

Identifying Number: 2025-003 Finding: Graham Leach Bliley Act – Student Information Security The College’s written information security program did not include the following elements required by regulation as agreed to in the PPA: • The College has performed a risk assessment utilizing internal reso...

Identifying Number: 2025-003 Finding: Graham Leach Bliley Act – Student Information Security The College’s written information security program did not include the following elements required by regulation as agreed to in the PPA: • The College has performed a risk assessment utilizing internal resources but has not fully integrated the information security program on the results of this assessment, nor has the College included all required elements of internal and external risks to the security, confidentiality or integrity of customer information. The College’s risk assessment is in the process of implementing an inventory of IT systems that process and store customer information and the compliance with information security elements related to multifactor authentication, access control, change management, logging and alerting and encryption. • The College has not identified, designed or implemented safeguards for all of the risks identified in the risk assessment. The safeguards do not include the identification of security events the detection and response capabilities to support incident response is still being developed. • The College has not been able to test safeguards because safeguards have not been fully designed or implemented in response to the risk assessment. • The College has not developed written policies and procedures to ensure that personnel are able to enact the information security program. There is a lack of evidence of leadership being required to report to the board or an appropriate supervisory council to ensure those charged with governance are informed on the current state of the information security program. Corrective Actions Taken or Planned: 1. Integration of Risk Assessment Results • Corrective Actions Taken or Planned: Complete a new risk assessment for our new information systems and fully integrate the results including safeguards into the College’s information security program. • Person Responsible: James Stevens, Chief Information Officer, jstevens@knox.edu • Anticipated Completion Date: June 30, 2026 2. Provide Training for Written Policies and Procedures • Corrective Actions Taken or Planned: Distribute written policies and procedures to ensure personnel can enact the information security program. Provide training to all relevant staff. • Person Responsible: James Stevens, Chief Information Officer, jstevens@knox.edu • Anticipated Completion Date: June 30, 2026 3. Testing of Safeguards • Corrective Actions Taken or Planned: Conduct regular testing of implemented safeguards to ensure effectiveness. Document results and make improvements as needed. • Person Responsible: James Stevens, Chief Information Officer, jstevens@knox.edu • Anticipated Completion Date: June 30, 2026 4. Comprehensive Inventory of IT Systems • Corrective Actions Taken or Planned: Update and maintain our inventory of all IT systems that process and store customer information. Ensure compliance with multifactor authentication, access control, change management, logging, alerting, and encryption requirements. • Person Responsible: James Stevens, Chief Information Officer, jstevens@knox.edu • Anticipated Completion Date: June 30, 2026 5. Governance and Reporting • Corrective Actions Taken or Planned: Establish a formal process requiring leadership to report on the state of the information security program to the Board of Trustees and include in our security policies. • Person Responsible: James Stevens, Chief Information Officer, jstevens@knox.edu • Anticipated Completion Date: 6/30/2026 6. GLBA Policy Enhancement • Corrective Actions Taken or Planned: Review and revise the information security policy to ensure all GLBA-required elements are included, referencing current regulatory guidance. • Person Responsible: James Stevens, Chief Information Officer, jstevens@knox.edu • Anticipated Completion Date: 6/30/2026

View Audit 389269

Finding 1175470 (2025-001)

Material Weakness 2025

Knox College

IL

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

Identifying Number: 2025-001 Finding: Error in Reporting for National Student Loan Data System (NSLDS) The College did not properly report the student enrollment change for students who received federal student aid to the NSLDS. The College did not timely report three students’ Program-Level or Camp...

Identifying Number: 2025-001 Finding: Error in Reporting for National Student Loan Data System (NSLDS) The College did not properly report the student enrollment change for students who received federal student aid to the NSLDS. The College did not timely report three students’ Program-Level or Campus-Level enrollment status change to NSLDS. Out of the 25 students tested, we noted 3 students (12%) whose status change at the Program-Level and Campus-Level was not timely reported to NSLDS. The College did not have adequate controls related to the process of enrollment reporting, which is required under Uniform Grant Guidance. Corrective Actions Taken or Planned: Knox College will add a third report submission to the end of the term. This will ensure that we report any students that made end of term withdrawals within the time window we are required to report. Any students who withdraw between terms will be captured in the first report submitted after our two week census. Person Responsible: Patrick Hathaway, Registrar, phathaway@knox.edu Anticipated Completion Date: December 31, 2025

View Audit 389269

Finding 1175365 (2025-006)

Material Weakness 2025

University of New Mexico

NM

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking Questioned Costs § 200.303 § 200.430

Management Response: The University agrees with this recommendation and will modify the procedures associated with the review of subsequent payroll and fringe adjustments to ensure that in addition to reversing in total that the adjustments also reverse at the index-account level. These new procedur...

Management Response: The University agrees with this recommendation and will modify the procedures associated with the review of subsequent payroll and fringe adjustments to ensure that in addition to reversing in total that the adjustments also reverse at the index-account level. These new procedures will be implemented by February 27, 2026, and will be overseen by the Deputy Controller.

View Audit 389089

Finding 1175320 (2025-004)

Material Weakness 2025

Second Harvest Northern Lakes Food Bank

MN

Material Weakness Reporting Internal Control / Segregation of Duties § 200.303

Corrective Action: As of September 30, 2024, SHN has implemented strengthened internal control procedures over reporting. Under the updated process, the accountant prepares all reimbursement requests, and the Consulting Controller performs a supervisory review and formal approval prior to submission...

Corrective Action: As of September 30, 2024, SHN has implemented strengthened internal control procedures over reporting. Under the updated process, the accountant prepares all reimbursement requests, and the Consulting Controller performs a supervisory review and formal approval prior to submission. This review ensures accuracy, completeness, and compliance with reporting requirements before the accountant submits the final reports to the funding agency. Proposed completion date: Management will implement the above procedures immediately.

View Audit 389029

Finding 1175186 (2025-003)

Material Weakness 2025

Northeastern Local School District

OH

Allowable Costs / Cost Principles Subrecipient Monitoring Reporting § 200.303 § 200.502 § 200.510

The District will implement procedure to ensure that grant activity is charged during the proper period and sufficient documentation is maintained.

View Audit 388817

Finding 1175151 (2025-007)

Material Weakness 2025

City of Albuquerque

NM

Subrecipient Monitoring Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303 § 200.306

The City concurs with the finding. The City will update Continuum of Care procedures related to subrecipient monitoring, in-kind contribution documentation, match tracking and reporting, and grant closeout review to strengthen compliance and oversight. Additionally, the City will provide additional ...

The City concurs with the finding. The City will update Continuum of Care procedures related to subrecipient monitoring, in-kind contribution documentation, match tracking and reporting, and grant closeout review to strengthen compliance and oversight. Additionally, the City will provide additional grants training and a list of subject matter experts within each department that can work with auditors during the single audit.

View Audit 388755

Finding 1175150 (2025-006)

Material Weakness 2025

City of Albuquerque

NM

Internal Control / Segregation of Duties Questioned Costs Subrecipient Monitoring § 200.303 § 200.403 § 200.431

The City concurs with the finding. The Department of Health, Housing & Homelessness will review the allocation of fringe benefits to grant payroll charges on a quarterly basis to ensure fringe benefits are properly allocated to funding sources. The reconciliations will be prepared by fiscal staff an...

The City concurs with the finding. The Department of Health, Housing & Homelessness will review the allocation of fringe benefits to grant payroll charges on a quarterly basis to ensure fringe benefits are properly allocated to funding sources. The reconciliations will be prepared by fiscal staff and approved by the Fiscal Manager. Additionally, the DFAS Grant Administrator will perform a semi-annual review of excess leave payouts to ensure they are charged to the correct grant funding string.

View Audit 388755

Finding 1175149 (2025-005)

Material Weakness 2025

City of Albuquerque

NM

Reporting Internal Control / Segregation of Duties Subrecipient Monitoring § 200.303

The City concurs with the finding. Beginning in December 2025, the Aviation Revenue and Finance Officer has implemented an internal control to strengthen compliance with federal reporting requirements. A centralized spreadsheet has been created to track all required financial report deadlines, inclu...

The City concurs with the finding. Beginning in December 2025, the Aviation Revenue and Finance Officer has implemented an internal control to strengthen compliance with federal reporting requirements. A centralized spreadsheet has been created to track all required financial report deadlines, including FAA Forms 5100-126 and 5100-127. This spreadsheet identifies the due dates, responsible personnel, and submission status to help ensure reports are prepared, reviewed, and submitted timely in accordance with applicable federal regulations. The Aviation Revenue and Finance Officer will also perform periodic reviews of the reporting calendar to monitor completeness, accuracy, and compliance to required deadlines.

View Audit 388755

Finding 1175107 (2025-004)

Material Weakness 2025

Hoover-Schrum Memorial School District 157

IL

Questioned Costs Allowable Costs / Cost Principles Cash Management § 200.303

Condition: Two (2) monthly claims for reimbursement reported meal counts less than those supported by records of the District. One (1) monthly claim for reimbursement reported meal counts in excess of those supported by records of the District. Corrective Action Plan: Management will review its poli...

Condition: Two (2) monthly claims for reimbursement reported meal counts less than those supported by records of the District. One (1) monthly claim for reimbursement reported meal counts in excess of those supported by records of the District. Corrective Action Plan: Management will review its policies and procedures and implement changes to strengthen internal control over compliance. Responsible Person: Dr. Dwayne E. Evans, Superintendent Anticipated Completion Date: June 30, 2026

View Audit 388740

Finding 1175010 (2025-003)

Material Weakness 2025

Eastern Nebraska Human Services Agency

NE

Matching / Level of Effort / Earmarking § 200.303

Material Weakness in Internal Control over Compliance – Matching, Level of Effort, Earmarking Identification of the Federal Program: Aging Cluster – 93.044/93.045/93.053 Criteria: CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal awar...

Material Weakness in Internal Control over Compliance – Matching, Level of Effort, Earmarking Identification of the Federal Program: Aging Cluster – 93.044/93.045/93.053 Criteria: CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The Agency calculated the value of its in-kind contributions, which were included in the Agency’s matching calculation, using the State of Nebraska minimum wage. The calculations contained errors as the wage rate used was not properly updated. Responsible Individuals: Hope Houessoukpe, Fiscal Officer Planned Corrective Action: Management agrees with the findings. Subsequent to yearend, management has implemented a control process whereby the in-kind calculation is checked against the State of Nebraska minimum wage rate. Anticipated Completion Date: June 30, 2026

View Audit 388643

Finding 1174918 (2025-001)

Material Weakness 2025

Ser-Jobs for Progress of the Texas Gulf Coast, Inc. and Subsidiary

TX

Questioned Costs Subrecipient Monitoring Reporting § 200.303

Corrective Action: An unnecessary step in the process was removed . Previously, program staff waited for funder confirmation approving the billing report before attaching a screenshot and submitting the executive summary. The process has been updated, so screenshots are submitted without waiting for...

Corrective Action: An unnecessary step in the process was removed . Previously, program staff waited for funder confirmation approving the billing report before attaching a screenshot and submitting the executive summary. The process has been updated, so screenshots are submitted without waiting for funder approval. In addition, the accounting department will shift its closing date 1 day prior to the funder's executive summary reporting deadline. Responsible Parties: Chief Program Officer & Chief Financial Officer Date to be Corrected: 03/31/2026 If the U.S. Department of Labor has any questions regarding this plan, please contact Liliana Rambo, CEO, 713.773.6000 x 117.

View Audit 388511

Finding 1174867 (2025-004)

Material Weakness 2025

North Kansas City School District No.74

MO

Equipment & Real Property Management Internal Control / Segregation of Duties § 200.303 § 200.313

2025-004: Equipment Management U.S. Department of Education Passed through Missouri Department of Elementary and Secondary Education Education Stabilization Fund, Assistance Listing No. 84.425D (COVID-19—Elementary and Secondary School Emergency Relief Fund), 84.425U (COVID-19—American Rescue Plan-E...

2025-004: Equipment Management U.S. Department of Education Passed through Missouri Department of Elementary and Secondary Education Education Stabilization Fund, Assistance Listing No. 84.425D (COVID-19—Elementary and Secondary School Emergency Relief Fund), 84.425U (COVID-19—American Rescue Plan-Elementary and Secondary School Emergency Relief), 84.425W (COVID-19—American Rescue Plan-Elementary and Secondary School Emergency Relief-Homeless Children and Youth) Federal award years 2023-2025 Criteria: The Uniform Guidance (2CFR 200.303) requires nonfederal entities receiving federal awards to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Also, in accordance with 2 CFR section 200.313(d)(1), property records must be maintained that include a description of the property, a serial number of other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property. In accordance with 2 CFR section 200.313(d)(2), a physical inventory of equipment and property must be taken, and the results reconciled with the property records at least once every two years. Condition: During the fiscal year 2024 audit, it was previously reported that the District’s controls were not operating effectively to reasonably ensure the District had maintained property records with the above required information, nor had it performed the required physical inventory of equipment within the two previous years. During fiscal year 2025, the District incorporated processes and controls over equipment management that met the property record requirements. The District also performed a physical inventory during fiscal year 2025 that included counting and reconciling approximately half of the District’s equipment and property within this grant program. Therefore, the District had not yet met the requirements of performing a physical inventory of all equipment and property within the previous two years. Cause: Given the timing of when the District incorporated its processes and controls, insufficient time remained to perform a physical inventory of all the District’s equipment and property within this grant program, and only approximately half of the items were subject to the physical inventory. Effect or potential effect: The District is not in compliance with federal grant requirements over the physical inventory of equipment. Improper equipment procedures could result in actions taken by oversight agencies which could impact future funding. Questioned costs: None Context: As noted above, the District updated its property records for all its property and equipment, and then approximately half of the District’s property and equipment was subject to a physical inventory. Identification as a repeat finding, if applicable: 2024-004 and 2024-006. Recommendation: We recommend the District continue to perform the processes and controls it added during fiscal year 2025, and complete the inventory count for the remaining items, to be compliance with the federal grant 2 year cycle. View of responsible officials: Management agrees with this finding. Corrective Action: Management plans to continue to keep detailed records and perform physical inventories in accordance with 2 CFR section 200.313(d)(2). Anticipated Completion Date: June 30, 2026 Contact Person: Dominic Accurso, Controller 816-321-5000 Dominic.accurso@nkcschools.org

View Audit 388434

Finding 1174799 (2025-002)

Material Weakness 2025

Lutheran Social Service of Minnesota and Affiliates

MN

Matching / Level of Effort / Earmarking § 200.303 § 200.306

Special Programs for the Aging-Title III, Part C-Nutrition Services – Assistance Listing No. 93.599 Recommendation: We recommend the Organization put procedures in place to retain documentation of supervisory approval of time and effort reports. Explanation of disagreement with audit finding: There ...

Special Programs for the Aging-Title III, Part C-Nutrition Services – Assistance Listing No. 93.599 Recommendation: We recommend the Organization put procedures in place to retain documentation of supervisory approval of time and effort reports. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Program leadership will review and retrain staff of the volunteer hour log requirements, including signatures, matching of hours to digital logs, properly documentation of updates made, and retention of documentation. Program leadership will conduct reviews of documentation for all their locations on a frequent basis to address any deficiencies and address as needed. Finally, administrative staff will conduct rotating reviews of site documentation as a secondary verification. Name(s) of the contact person(s) responsible for corrective action: Drew Erickson Planned completion date for corrective action plan: 02/28/2026

View Audit 388351

Finding 1174751 (2025-003)

Material Weakness 2025

Clarkson College

NE

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

Student Financial Aid Cluster – Assistance Listing No. Various Recommendation: We recommend the College review and formalize its procedures to ensure that internal controls are in place to identify and correct any inconsistencies throughout the year. Explanation of disagreement with audit finding: T...

Student Financial Aid Cluster – Assistance Listing No. Various Recommendation: We recommend the College review and formalize its procedures to ensure that internal controls are in place to identify and correct any inconsistencies throughout the year. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: In the spring of 2025, Clarkson College made the decision to outsource majority of financial aid functions to the Higher Education Assistance Group (HEAG) due to a lack of internal controls. Since hiring HEAG in Spring 2025 to oversee our financial aid functions, Clarkson College has seen many improvements in our internal controls. Reconciliation of Direct Loans and Federal Pell Grant funds is conducted monthly by a designated Financial Aid staff member. Following completion, the reconciliation documentation is forwarded to the College Controller for independent review. Final approval is provided by the Vice President of Enrollment and Advising. A standing monthly meeting is also held between the Financial Aid and Finance teams to review reconciliation activity, address variances, and resolve any items requiring clarification. The Federal Work-Study (FWS) program is monitored and reviewed each pay period to ensure expenditures remain within authorized limits and align with student eligibility. Federal Supplemental Educational Opportunity Grant (FSEOG) and Federal Work-Study (FWS) funds are reviewed and reconciled periodically throughout each semester by a Financial Aid staff member. Upon completion of these reconciliations, supporting documentation is submitted to the College Controller for review and verification of accuracy. These procedures ensure compliance with federal regulations, promote internal control integrity, and provide appropriate oversight of all Title IV funding streams. Name(s) of the contact person(s) responsible for corrective action: Dr. Carla Dirkshneider, VP of Enrollment and Retention Planned completion date for corrective action plan: Corrective action was implemented Spring semester of FY 2025.

View Audit 388309

Finding 1174314 (2025-003)

Material Weakness 2025

Oregon Manufacturing Extension Partnership, Inc.

OR

Procurement, Suspension & Debarment Subrecipient Monitoring Material Weakness § 200.303

Context and Cause – During the year ended June 30, 2025, OMEP entered into four first-tier subawards greater than $30,000 under AL number 11.611. The auditor tested one of these subawards, noting that the award was not yet reported under the Federal Funding Accountability and Transparency Act to the...

Context and Cause – During the year ended June 30, 2025, OMEP entered into four first-tier subawards greater than $30,000 under AL number 11.611. The auditor tested one of these subawards, noting that the award was not yet reported under the Federal Funding Accountability and Transparency Act to the Federal Subaward Reporting System (FSRS). Per further inquiry, all of the first-tier subawards were yet to be reported to the FSRS. OMEP was aware of the FFATA reporting requirements, but the reporting was not made timely. Internal controls were not adequately designed, and procedures were not in place to track and report first-tier subawards within the time frame required by federal requirements. Recommendation – The Organization should establish written policies and procedures for reporting first-tier subawards. Action Taken: OMEP will add a fiscal policy, that includes a documented review of first tier subawards, to ensure they are input to the FSRS no later than the last day of month that follows the initial obligation to the sub awardee. Responsible parties: Controller. Anticipated completion date: June 30, 2026.

View Audit 388072

Finding 1174268 (2025-001)

Material Weakness 2025

Western Wayne School Corporation

IN

School Nutrition Programs Internal Control / Segregation of Duties Allowable Costs / Cost Principles § 200.303

FINDING 2025-001 Subject: Child Nutrition Cluster (CNC) - Internal Controls Federal Agency: Department of Education Federal Program: School Breakfast Program, National School Lunch Program, Summer Food Service Program for Children Assistance Listing Number: 10.553, 10.555, 10.559 Pass-Through Entity...

FINDING 2025-001 Subject: Child Nutrition Cluster (CNC) - Internal Controls Federal Agency: Department of Education Federal Program: School Breakfast Program, National School Lunch Program, Summer Food Service Program for Children Assistance Listing Number: 10.553, 10.555, 10.559 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs - Cost Principles Audit Finding: Significant Deficiency Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Activities Allowed or Unallowed, Allowable Costs - Cost Principles compliance requirements. Context: During testing payroll disbursements charged to CNC grants, we noted: One selection in a sample of 40 for which the employee was paid above their contracted hourly rate. One selection in a sample of 40 for which the contract sheet for fiscal year 2025 did not include an accurate breakdown for cafeteria employees employed for less than one year and employees employed more than one year. Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: Management will ensure controls surrounding salary/hour rate schedules are implemented/enhanced and that rate changes are properly reviewed when instituted. Responsible Party and Timeline for Completion: Betty Huddleston, July 1, 2026

View Audit 387991

Finding 1174260 (2025-003)

Material Weakness 2025

Alameda Health System, A Public Hospital Authority

CA

Matching / Level of Effort / Earmarking § 200.303

Management agrees with the finding. The Health System has implemented the policy titled, Alameda Health System Reports Policies – SUD Program, to ensure program earmarking requirements and proper documentation is retained to evidence fulfilled requirements. Management will continue to refine interna...

Management agrees with the finding. The Health System has implemented the policy titled, Alameda Health System Reports Policies – SUD Program, to ensure program earmarking requirements and proper documentation is retained to evidence fulfilled requirements. Management will continue to refine internal data collection processes to sufficiently monitor earmarking requirements.

View Audit 387960

Finding 1174259 (2025-004)

Material Weakness 2025

Alameda Health System, A Public Hospital Authority

CA

Matching / Level of Effort / Earmarking Reporting § 200.303

Management agrees with the finding. The Health System has implemented the policy and procedures over the program to ensure that required reports are prepared and reviewed by separate individuals. Documentation is maintained by the program to evidence preparation and review processes and timely filin...

Management agrees with the finding. The Health System has implemented the policy and procedures over the program to ensure that required reports are prepared and reviewed by separate individuals. Documentation is maintained by the program to evidence preparation and review processes and timely filing of the annual report. Management will continue to refine internal processes to ensure quarterly and annual reports are filed timely.

View Audit 387960

Finding 1174171 (2025-004)

Material Weakness 2025

Mississinewa Community School Corporation

IN

School Nutrition Programs § 200.303

FINDING 2025-004 Finding Subject: Child Nutrition Cluster-Reporting Contact Person Responsible for Corrective Action: Greg Miller, Food Service Director Contact Phone Number and Email Address: 424 East South A Street, Gas City, IN 46933 (765)-677- 4423 Views of Responsible Officials: Mississinewa Co...

FINDING 2025-004 Finding Subject: Child Nutrition Cluster-Reporting Contact Person Responsible for Corrective Action: Greg Miller, Food Service Director Contact Phone Number and Email Address: 424 East South A Street, Gas City, IN 46933 (765)-677- 4423 Views of Responsible Officials: Mississinewa Community School Corporation concurs with the finding 2025-004. Description of Corrective Action Plan: An effective internal control system, which would include segregation of duties, was not in place at the School Corporation to ensure compliance with requirements related to the monthly reimbursement claim process for the audit period. Corrective Action: Internal Controls regarding the monthly reimbursement claim process will be implemented to be completed each month. The High School Kitchen Manager, along with the Food Service Director, will review the sale reports, attendance factor, and edit checks to calculate the total claim count for each federal program. The Manager and Food Service Director will approve and sign the total meal counts to claim prior to entering data into the CNP website. Anticipated Completion Date: January 31, 2026.

View Audit 387860

Corrective Action Plans

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