Corrective Action Plans

Finding 1179440 (2025-005)

Material Weakness 2025

PR

Procurement, Suspension & Debarment Subrecipient Monitoring Reporting § 200.302 § 200.328 § 200.329

COMMONWEALTH OF PUERTO RICO CORRECTIVE ACTION PLAN MUNICIPALITY OF NARANJITO FOR THE FISCAL YEAR ENDED JUNE 30, 2025 Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and 2 CFR 200 Uniform Administrative Requirements, Cost Principles, and Audit...

COMMONWEALTH OF PUERTO RICO CORRECTIVE ACTION PLAN MUNICIPALITY OF NARANJITO FOR THE FISCAL YEAR ENDED JUNE 30, 2025 Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and 2 CFR 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Audit Period: July 1, 2024 – June 30, 2025 Fiscal Year: 2024-2025 Principal Executive: Hon. Orlando Ortíz Chevres - Mayor Contact Person: Mrs. Meyleen Hernández, Finance Director Phone: (787) 869 – 2200 Finding Reference Number: 2025-005 Federal Award: Disaster Grants – Public Assistance (Presidentially Declared Disaster) (ALN 97.036) Compliance Requirement: Reporting (L) Type of Finding: Significant Deficiency in Internal Controls (SD), Instance of Noncompliance (NC) Description of Finding: In our Reporting Test, we evaluated the Quarterly Progress Reports of a total of eleven (11) projects for two quarters of fiscal year 2024-2025. During our audit procedures, we noted that the reports did not agree with the accounting and project records. Auditor’s Recommendations: We recommend that Program Administrators reconcile the differences between the quarterly report and the accounting records before the submission of the next submission to the pass-through entity. Corrective Action: We understand that only two reports did not agree with the accounting records. We have consultants that are responsible for the preparation of these reports. Instructions were given to the consultants in order to correct the reports that do not agree with the accounting records. There was a misunderstanding with the reports, in which the pass-through entity instructed that purchase orders and expenditures incurred should be reported. As subsequently clarified, only the expenditures incurred should be reported as expended. Name of Contact Person: Meyleen Hernández Rivera, Finance Director Projected Completion Date: June 30, 2026

View Audit 391846

Finding 1179439 (2025-007)

Material Weakness 2025

Municipality of Naranjito

PR

Eligibility Significant Deficiency Internal Control / Segregation of Duties

COMMONWEALTH OF PUERTO RICO CORRECTIVE ACTION PLAN MUNICIPALITY OF NARANJITO FOR THE FISCAL YEAR ENDED JUNE 30, 2025 Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and 2 CFR 200 Uniform Administrative Requirements, Cost Principles, and Audit...

COMMONWEALTH OF PUERTO RICO CORRECTIVE ACTION PLAN MUNICIPALITY OF NARANJITO FOR THE FISCAL YEAR ENDED JUNE 30, 2025 Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and 2 CFR 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Audit Period: July 1, 2024 – June 30, 2025 Fiscal Year: 2024-2025 Principal Executive: Hon. Orlando Ortíz Chevres - Mayor Contact Person: Mrs. Meyleen Hernández, Finance Director Phone: (787) 869 – 2200 Finding Reference Number: 2025-007 Federal Award: Child Care and Development Block Grant (ALN 93.575) Compliance Requirement: Eligibility (E) Type of Finding: Significant Deficiency (SD), Instance of Noncompliance (NC) Description of Finding: During our audit procedures, we evaluated four (4) participants files, and we found that two (2) of them do not have the Eligibility Certification. For that reason, we could not validate the eligibility of these participants. Auditor’s Recommendations: Management must implement internal control to ensure that the eligible participant is properly documented at the time of receiving services. Corrective Action: The Municipality will take steps to request the documentation again from the two participants for whom the corresponding eligibility certification was unavailable. In addition, instructions will be issued to ensure that all participants' eligibility documentation is reviewed periodically. Name of Contact Person: Responsible Person: Aracelis Fuentes Rodríguez, Child Care Center Director Completion Date: June 30, 2026

View Audit 391846

Finding 1179438 (2025-006)

Material Weakness 2025

Municipality of Naranjito

PR

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

COMMONWEALTH OF PUERTO RICO CORRECTIVE ACTION PLAN MUNICIPALITY OF NARANJITO FOR THE FISCAL YEAR ENDED JUNE 30, 2025 Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and 2 CFR 200 Uniform Administrative Requirements, Cost Principles, and Audit...

COMMONWEALTH OF PUERTO RICO CORRECTIVE ACTION PLAN MUNICIPALITY OF NARANJITO FOR THE FISCAL YEAR ENDED JUNE 30, 2025 Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and 2 CFR 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Audit Period: July 1, 2024 – June 30, 2025 Fiscal Year: 2024-2025 Principal Executive: Hon. Orlando Ortíz Chevres - Mayor Contact Person: Mrs. Meyleen Hernández, Finance Director Phone: (787) 869 – 2200 Finding Reference Number: 2025-006 Federal Award: Child Care and Development Block Grant (ALN 93.575) Compliance Requirement: Earmarking (G) Type of Finding: Significant Deficiency in Internal Controls (SD), Instance of Noncompliance (NC) Description of Finding: In our Earmarking Test, we found that the Municipality did not spend the required percentages according to the cost limitations and minimum required amounts of the approved budget for the categories of administration, quality services and quality services for children and infants. Auditor’s Recommendations: Management should take the necessary steps to ensure that the Program complies with the quality earmarking requirements. Corrective Action: The Municipality has appointed as the official responsible the Finance Director for monitoring and reviewing compliance. Internal control procedures have been established to properly document and monitor the expenditure incurred and prospective obligations, and if the required amount or percentage cannot be spent, a waiver will be requested. Name of Contact Person: Meyleen Hernández Rivera, Finance Director Projected Completion Date: June 30, 2026

View Audit 391846

Finding 1179437 (2025-003)

Material Weakness 2025

Municipality of Naranjito

PR

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting § 200.1

COMMONWEALTH OF PUERTO RICO CORRECTIVE ACTION PLAN MUNICIPALITY OF NARANJITO FOR THE FISCAL YEAR ENDED JUNE 30, 2025 Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and 2 CFR 200 Uniform Administrative Requirements, Cost Principles, and Audit...

COMMONWEALTH OF PUERTO RICO CORRECTIVE ACTION PLAN MUNICIPALITY OF NARANJITO FOR THE FISCAL YEAR ENDED JUNE 30, 2025 Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and 2 CFR 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Audit Period: July 1, 2024 – June 30, 2025 Fiscal Year: 2024-2025 Principal Executive: Hon. Orlando Ortíz Chevres - Mayor Contact Person: Mrs. Meyleen Hernández, Finance Director Phone: (787) 869 – 2200 Finding Reference Number: 2025-003 Federal Award: Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing No. 21.027) Compliance Requirement: Reporting (L) Type of Finding: Significant Deficiency (SD), Instance of Noncompliance (NC) Description of Finding: In our Reporting Test, we evaluated the Project and Expenditure Report submitted to the U.S. Department of Treasury during fiscal year 2024-2025. During our audit procedures, we identified differences between the amounts reported as current period expenditures, and the amounts recognized in the accounting system. Additionally, during the fiscal year the Municipality received new funds called Service of Excellence to Citizens also related to the Coronavirus State and Local Fiscal Recovery Funds Program. This allocation was granted through the Puerto Rico Fiscal Agency and Financial Advisory Authority. In our Reporting Test, we evaluated six (6) reports and could not validate their submission. Auditor’s Recommendations: We recommend training for the authorized personnel who administer the program, to better understand the reporting requirements and prepare timely reports. The Municipality should establish a monitoring system to ensure compliance with requirements established by the passthrough agency such as: submitting the reports during the required time frame and where the fund expenses will be reported as incurred. This will ensure better control of the program. Corrective Action: The authorized personnel understand the reporting requirements. We are in the process of training additional personnel to have more resources to comply with all reporting requirements. The Finance Department is working with external consultants to address this situation, and be able to comply with all reports as required. Name of Contact Person: Meyleen Hernández Rivera, Finance Director Projected Completion Date: June 30, 2026

View Audit 391846

Finding 1179435 (2025-004)

Material Weakness 2025

Municipality of Naranjito

PR

Subrecipient Monitoring § 200.332

COMMONWEALTH OF PUERTO RICO CORRECTIVE ACTION PLAN MUNICIPALITY OF NARANJITO FOR THE FISCAL YEAR ENDED JUNE 30, 2025 Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and 2 CFR 200 Uniform Administrative Requirements, Cost Principles, and Audit...

COMMONWEALTH OF PUERTO RICO CORRECTIVE ACTION PLAN MUNICIPALITY OF NARANJITO FOR THE FISCAL YEAR ENDED JUNE 30, 2025 Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and 2 CFR 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Audit Period: July 1, 2024 – June 30, 2025 Fiscal Year: 2024-2025 Principal Executive: Hon. Orlando Ortíz Chevres - Mayor Contact Person: Mrs. Meyleen Hernández, Finance Director Phone: (787) 869 – 2200 Finding Reference Number: 2025-004 Federal Award: Community Development Block Grant/State’s Program and Non-Entitlement Grants in Hawaii (Assistance Listing No. 14.228) Compliance Requirement: Reporting (L) Type of Finding: Significant Deficiency (SD), Instance of Noncompliance (NC) Description of Finding: In our reporting test, we evaluate four (4) quarterly reports and two (2) of them were not submitted and one (1) was submitted late. Additionally, two (2) quarterly reports that were submitted do not agree with the accounting records. Auditor’s Recommendations: We recommend that the Municipality maintain constant monitoring to improve program controls. The reports must be presented as established in the agreement and guidelines of the Department of Housing. This will ensure compliance with the reporting requirements under the Community Development Block Grants/State’s Program and Non-entitlement Grant in Hawaii agreement. Corrective Action: The Municipality appointed a person to work on all the required reports and instructed them on the deadlines that apply. We were able to submit all past reports on January 2025. And subsequently we are complying with the reporting requirements. In addition, we established the following internal controls: 1. An accountant was hired to assume direct responsibility for the preparation, review, and filing of the CDBG Program's financial and programmatic reports. 2. Technical guidance was requested from and received from the Department of Housing to ensure the proper preparation and compliance with applicable reporting requirements. 3. All overdue quarterly reports and corresponding reports through December 2025 were filed, including the reconciliation of requisitioned versus paid balances. 4. An internal compliance schedule, with deadlines and administrative oversight, was established to ensure timely filing in future periods. Name of Contact Person: Pedro Santiago, Federal Programs Director Completion Date: December 31, 2025

View Audit 391846

Finding 1179425 (2025-001)

Material Weakness 2025

Anson County

NC

Eligibility Internal Control / Segregation of Duties

Anson County Finance Department 101 S. Greene Street, Suite 238 Wadesboro, NC 28170 None reported Name of Contact Person: Nia Broadway, Medicaid Manager Corrective Action: Proposed Completion Date: Corrective Actions for findings 2025-001 also apply to the State Award findings. Section IV- State Awa...

Anson County Finance Department 101 S. Greene Street, Suite 238 Wadesboro, NC 28170 None reported Name of Contact Person: Nia Broadway, Medicaid Manager Corrective Action: Proposed Completion Date: Corrective Actions for findings 2025-001 also apply to the State Award findings. Section IV- State Award Findings and Questioned Costs Section III - Federal Award Findings and Questioned Costs Corrective Action Plan 2/13/2026 Inadequate Request for Information Management will meet with staff on November 13, 2025, to discuss and train on findings from the Single County Audit All staff responsible for Single County Finding were placed on work plan related to the finding. For the next 60 days 50% of all Medicaid Staff work will have a complete Second Party and the findings will be discussed with the individual staff and training for all Staff based off the findings. For the Year Ended June 30, 2025 Section II - Financial Statement Findings Finding: 2025-001 124

View Audit 391837

Finding 1179424 (2025-001)

Material Weakness 2025

Franklin & Marshall College

PA

Student Financial Aid Subrecipient Monitoring Eligibility

The College will ensure the accuracy of reports sent to NSLDS by making changes to their staffing structure and roles surrounding student leave of absences and withdrawals. The College hired a single administrator who assists students through the process of requesting a leave of absence or a withdra...

The College will ensure the accuracy of reports sent to NSLDS by making changes to their staffing structure and roles surrounding student leave of absences and withdrawals. The College hired a single administrator who assists students through the process of requesting a leave of absence or a withdrawal and processes all leaves, making the system more efficient. The Office of Financial Aid will continue to process Return to Title IV calculations immediately when notified about a Title IV recipient’s leave of absence or withdrawal.

View Audit 391825

Finding 1179423 (2025-003)

Material Weakness 2025

Bering Sea Fishermen's Association

AK

Period of Performance Subrecipient Monitoring Allowable Costs / Cost Principles § 200.309

Name of Contact Person: Karen Gillis Corrective Action Plan: This finding remains an unusual situation for BSFA. BSFA has not previously been in a situation where BSFA funded a contractor in the absence of the federal government’s inability to enter into a contractual agreement (due to the Trump Adm...

Name of Contact Person: Karen Gillis Corrective Action Plan: This finding remains an unusual situation for BSFA. BSFA has not previously been in a situation where BSFA funded a contractor in the absence of the federal government’s inability to enter into a contractual agreement (due to the Trump Administrations strict limitations on entering into contractual agreements). The inability to demonstrate that costs were incurred lies with the contractor wherein we were unable to obtain from them their spending down the funds provided as originally agreed upon. We do not anticipate another instance such as this though we will implement stronger controls over contract payments in the future so expenditures are supported by documentation showing costs were incurred within the approved period of performance. Proposed Completion Date: February 28, 2026

View Audit 391824

Finding 1179422 (2025-002)

Material Weakness 2025

Bering Sea Fishermen's Association

AK

Subrecipient Monitoring § 200.332 § 200.501

Name of Contact Person: Karen Gillis Corrective Action Plan: As mentioned in the corrective action plan for finding 2025-001, we have instructed our attorney’s office to develop language for the new Subaward Agreement outlining a new process for verifying single audit requirements and how we will fo...

Name of Contact Person: Karen Gillis Corrective Action Plan: As mentioned in the corrective action plan for finding 2025-001, we have instructed our attorney’s office to develop language for the new Subaward Agreement outlining a new process for verifying single audit requirements and how we will follow up on any findings identified in audits associated with our subrecipients. Our process will identify the level of risk as well as a criterion for evaluating risk, a timeline for our request and review of audits and a correspondence schedule to include monitoring a subrecipient’s adherence to corrective action plans. In the end, BSFA will have a policy and process to annually assess subrecipient federal expenditures to determine single audit requirements, obtain and review subrecipient audit reports, including follow-up on any findings, document management decision and track corrective action until resolution. Proposed Completion Date: June 30, 2026

View Audit 391824

Finding 1179421 (2025-001)

Material Weakness 2025

Bering Sea Fishermen's Association

AK

Subrecipient Monitoring § 200.332

Name of Contact Person: Karen Gillis Corrective Action Plan: We have submitted our Subaward Agreement Template to our attorney’s office for review of compliance in all segments of the Agreement Template. Once we receive the new version we will work with all Subaward partners to update the agreements...

Name of Contact Person: Karen Gillis Corrective Action Plan: We have submitted our Subaward Agreement Template to our attorney’s office for review of compliance in all segments of the Agreement Template. Once we receive the new version we will work with all Subaward partners to update the agreements for the current term of their awards. We will also use the new version for all awards hereafter. Proposed Completion Date: June 30, 2026

View Audit 391824

Finding 1179420 (2025-001)

Material Weakness 2025

Davenport University

MI

Student Financial Aid Material Weakness Matching / Level of Effort / Earmarking

Condition: The College did not send out the post-disbursement email notifications to a group of students. Planned Corrective Action: While the University has documented procedures in place for the disbursement of federal funds and required post-disbursement notifications to students, the finding ide...

Condition: The College did not send out the post-disbursement email notifications to a group of students. Planned Corrective Action: While the University has documented procedures in place for the disbursement of federal funds and required post-disbursement notifications to students, the finding identified related to only students who received both a Federal PLUS loan and a Federal Direct Loan during 2025. University did not properly send a post-disbursement notification to 117 out of 247 students who received both a federal PLUS loan as well as a Federal Direct Loan on a specific date during fiscal year 2024-2025. The University will adjust its internal processes to ensure all students who receive federal loans are sent post-disbursement email notifications by performing a review of the IT system and working toward fully automated notification settings to ensure all students are captured in the post-disbursement notification process. Contact person responsible for corrective action: Leah Alderink, Director of Student Financial Aid Anticipated Completion Date: Immediately

View Audit 391821

Finding 1179419 (2025-004)

Material Weakness 2025

MacOnaquah School Corporation

IN

Matching / Level of Effort / Earmarking § 200.303

FINDING 2025-004 Finding Subject: COVID-19 Education Stabilization Fund – Matching, Level of Effort, Earmarking Contact Person Responsible for Corrective Action: Jennifer Miller, Corporate Treasurer Contact Phone Number and Email Address: 765-689-9131; millerje@maconaquah.k12.in.us Views of Responsi...

FINDING 2025-004 Finding Subject: COVID-19 Education Stabilization Fund – Matching, Level of Effort, Earmarking Contact Person Responsible for Corrective Action: Jennifer Miller, Corporate Treasurer Contact Phone Number and Email Address: 765-689-9131; millerje@maconaquah.k12.in.us Views of Responsible Officials: We concur with the Finding Response Comments: When the initial budget was set up for this Grant, it was not set up correctly to track the 20% learning loss for this Federal Grant. The Grant has now closed and is no longer being used. In the future, any Grants that must show level of effort, will be set up by the Corporate Treasurer in the accounting software to better track the level of effort or any matching funds. Anticipated Completion Date: This grant is closed and there is no need for a corrective action

View Audit 391812

Finding 1179416 (2025-003)

Material Weakness 2025

MacOnaquah School Corporation

IN

Allowable Costs / Cost Principles § 200.303 § 200.403

FINDING 2025-003 Finding subject: COVID-19 Educational Stabilization Fund – Allowable Costs/Cost Principles Contact Person Responsible for Corrective Action: Jennifer Miller, Corporate Treasurer Contact Phone Number and Email Address: 765-689-9131 millerje@maconaquah.k12.in.us Views of Responsible O...

FINDING 2025-003 Finding subject: COVID-19 Educational Stabilization Fund – Allowable Costs/Cost Principles Contact Person Responsible for Corrective Action: Jennifer Miller, Corporate Treasurer Contact Phone Number and Email Address: 765-689-9131 millerje@maconaquah.k12.in.us Views of Responsible Officials: We concur with the finding According to our Classified Handbook, we only have a starting wage stated for employees. This handbook is in place for the 2025-2026 and 2026-2027 school years. We will take action to update the handbook for the 2026-2027 school year to include a starting and ending wage for the classified positions listed within the Classified Employee Handbook. This action will need to be voted on by the School Board. Anticipated Completion Date: August 2026

View Audit 391812

Finding 1179413 (2025-002)

Material Weakness 2025

MacOnaquah School Corporation

IN

Allowable Costs / Cost Principles School Nutrition Programs § 200.303 § 200.403

FINDING 2025-002 Finding Subject: Child Nutrition Cluster – Allowable Costs/Costs Principles Contact Person Responsible for Corrective Action: Jennifer Miller, Corporate Treasurer Contact Phone Number and Email Address: 765-689-9131; millerje@maconaquah.k12.in.us Views of Responsible Officials: We c...

FINDING 2025-002 Finding Subject: Child Nutrition Cluster – Allowable Costs/Costs Principles Contact Person Responsible for Corrective Action: Jennifer Miller, Corporate Treasurer Contact Phone Number and Email Address: 765-689-9131; millerje@maconaquah.k12.in.us Views of Responsible Officials: We concur with the findings Response Comments: According to our Classified Handbook, we only have a starting wage stated for employees. This handbook is in place for the 2025-2026 and 2026-2027 school years. We will take action to update the handbook for the 2026-2027 school year to include a starting and ending wage for the classified positions listed within the Classified Employee Handbook. This will need to voted on by the School Board before we can put into practice. Anticipated Completion Date: August 2026

View Audit 391812

Finding 1179409 (2025-002)

Material Weakness 2025

City of Red Bluff

CA

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

Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and COVID-19 Airport Programs; We recommend that the City implement a reporting system that requires all employees paid with federal funds to complete itemized, signed timesheets detailing the specific hours worked on each...

Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and COVID-19 Airport Programs; We recommend that the City implement a reporting system that requires all employees paid with federal funds to complete itemized, signed timesheets detailing the specific hours worked on each grant or project on a daily or weekly basis. These timesheets must be reviewed and approved by a supervisor with firsthand knowledge of the work performed.; Management's Response: The City of Red Bluff has used a log of time spent on the grant including date, description of activity, and time worked on the grant. The logs failed to account for non-grant related time as required by 2 CFR 200.430(g)(1)(iv).; Responsible Individual: Leanna Pearson, Assistant Finance Director; Corrective Action Plan: The City will set up separate tracking within the job category in the City’s payroll timekeeping software for grants. The employee will split the time in the timekeeping software and add notes describing the activities and grants worked on.; Anticipated Completion Date: 3-4-2026.

View Audit 391810

Finding 1179405 (2025-001)

Material Weakness 2025

City of Red Bluff

CA

Reporting § 200.328

Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and COVID-19 Aiport Programs; We recommend that the City establish a tracking system to monitor all required reports and their due dates to ensure timely submission. Management's Response: City of Red Bluff contracts out a...

Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and COVID-19 Aiport Programs; We recommend that the City establish a tracking system to monitor all required reports and their due dates to ensure timely submission. Management's Response: City of Red Bluff contracts out airport grant compliance to a third-party contractor. The scope of services in that contract end at the completion and submittal of the grant closeout documents. Delays in the Federal Government review and comment of grant closeout documents have left a period where the final closeout documents have been submitted but the grant is not closed. In the period when the final closeout documents have been submitted but the grant was not closed, the City was required to submit annual SF-425 reporting package and will continue to be required to file the annual SF-425 reporting package until the Federal Government can process the closeout documents. This period was erroneously left out of the scope of services for the third-party contractor grant compliance, and the City failed to submit the proper reports.; Responsible Individual: Scott Miller, Public Works Director; Corrective Action Plan: The City will add to the scope of services template language to add compliance period of between submittal of the grant closeout documents and acceptance of those documents. The City will then monitor the contract for these new services. The City will also file the missing SF-425 forms.; Anticipated Completion Date: 4-30-2026

View Audit 391810

Finding 1179402 (2025-001)

Material Weakness 2025

City of Shasta Lake

CA

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.302 § 200.334

Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii. We recommend that the management strengthen controls over disbursements by ensuring that no payment is processed without a valid, itemized invoice that has been approved by authorized personnel. Furthermore, all...

Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii. We recommend that the management strengthen controls over disbursements by ensuring that no payment is processed without a valid, itemized invoice that has been approved by authorized personnel. Furthermore, all supporting documentation should be attached to the payment voucher and retained for audit procedures. Management's Response: The City agrees, and controls will be strenthened over disbursements, and all supporting documentation will be attached and retained for audit procedures. Responsible Individual: Wendy Howard, Finance Director. Corrective Action Plan: Management has strengthened internal controls over disbursements. All payments will be supported by valid, itemized invoices and approved by authorized personnel. Supporting documentation will be attached prior to payment and retained for audit purposes.

View Audit 391803

Finding 1179396 (2025-001)

Material Weakness 2025

Cedar County

IA

Internal Control / Segregation of Duties

The County Sheriff should review the operating procedures of the office to obtain the maximum internal control possible under the circumstances utilizing currently available staff, including elected officials.

View Audit 391797

Finding 1179395 (2025-001)

Material Weakness 2025

Washington County

NC

Eligibility Internal Control / Segregation of Duties

None reported. Finding: 2025-001 Inaccurate Resources Information Entry Name of Contact Person: Lynn Swett, Human Services Deputy Director Corrective Action: Proposed Completion Date: For the Year Ended June 30, 2025 Corrective Action Plan Section II. Financial Statement Findings Section III. Federa...

None reported. Finding: 2025-001 Inaccurate Resources Information Entry Name of Contact Person: Lynn Swett, Human Services Deputy Director Corrective Action: Proposed Completion Date: For the Year Ended June 30, 2025 Corrective Action Plan Section II. Financial Statement Findings Section III. Federal Award Findings and Questioned Costs Corrective Actions for Finding 2025-001 also apply to State Award Findings. Section IV - State Award Findings and Question Costs Staff were re-trained on effective date of change, and how to verify those dates are correct in NC FAST before the continuation of case processing, along with how to verify resources and the proper way to request information and what information is vital to case processing. Policy and procedures were used to ensure staff are trained appropriately. Second party reviews will continue to occur to ensure dates are correct in NC FAST, and second party reviews have increased to target 100% of all applications. The majority of cases found in error were in error prior to this training in December of 2024. Re-training occurs monthly during staff meetings to continue to improve outcomes. More difficult eligibility determination like those involving Special Needs Trust or Pooled Trust will be assigned to senior staff for processing and will immediately be second partied by the supervisor to ensure that resources and income are accounted for properly. Any noted discrepancies will be consulted with State Operation Support Team during processing of case. Second party reviews will continue to occur to ensure accuracy on information entered, including the use of resources. Trainings were completed by December 31, 2024, monthly staff meetings have been used to reinforce those training materials. 136

View Audit 391795

Finding 1179394 (2025-001)

Material Weakness 2025

Hyde County

NC

Eligibility Internal Control / Segregation of Duties

None reported Name of Contact Person: Heather Owens - Medicaid Supervisor Corrective Action: Proposed Completion Date: Corrective actions for findings 2025-001 also apply to the State Awards findings. Section IV - State Award Findings and Questioned Costs All cases now undergo two separate superviso...

None reported Name of Contact Person: Heather Owens - Medicaid Supervisor Corrective Action: Proposed Completion Date: Corrective actions for findings 2025-001 also apply to the State Awards findings. Section IV - State Award Findings and Questioned Costs All cases now undergo two separate supervisory checks: One before the worker disposes of the case. A second check after disposal and worker sign-off to confirm that every identified correction was fully completed. This double-verification step was implemented immediately upon discovery of the issue. Each caseworker now receives a personalized checklist based on errors identified in their secondparty reviews. Workers must complete and submit this checklist at the time of review to acknowledge and address recurring issues. Immediate staff meetings were held to review audit findings and relevant policy. Additional training on correct income rules for recertifications is being developed (due to repeated findings). The supervisor has drafted the material, which will be submitted to State staff for review and approval. Training will be delivered to the entire team no later than the end of December 2025 (subject to State review timeline and holiday schedule). Weekly team meetings continue to cover Medicaid policy updates. Individual one-on-one meetings are held with each worker to review second-party errors, clarify policy, and provide coaching. A lead worker has been designated and is actively in training. The lead worker is already assisting with case staffing and troubleshooting while continuing to deepen her knowledge (particularly in the more complex Adult Medicaid program). Full lead-worker responsibilities are expected to be in place within the next six months. Second-party reviews now include checks of other active cases in the household or agency to ensure required changes are addressed and reported. This practice is reinforced with staff and monitored for compliance. The supervisor will complete a full review of pending COVID-related cases by the end of January 2026, followed by targeted team training on proper ongoing handling. All trainings and policy implementations will be completed by end of January 2026. Finding: 2025-001 Section III - Federal Award Findings and Questioned Costs Corrective Action Plan For Year Ended June 30, 2025 Section II - Financial Statement Findings 159

View Audit 391788

Finding 1179393 (2025-001)

Material Weakness 2025

Warrensburg-Latham Cusd 11

IL

Material Weakness Reporting Internal Control / Segregation of Duties

Finding 2025 – 001: Restatement to Net Position for Capital Assets Condition: During audit fieldwork, our testing resulted in a restatement of net position in order to correct capital assets due to a new appraisal. Plan: The District implemented a new capital asset appraisal in order to have accurat...

Finding 2025 – 001: Restatement to Net Position for Capital Assets Condition: During audit fieldwork, our testing resulted in a restatement of net position in order to correct capital assets due to a new appraisal. Plan: The District implemented a new capital asset appraisal in order to have accurate historical records of all assets owned by the District. These schedules will be updated on an annual basis to reflect accurate reporting requirements. Anticipated Date of Completion: Fiscal Year 2026 Name of Contact Person: Kirsten Perkins, Director of Finance and Human Resource Management Response: The District implemented a new capital asset appraisal in order to accurately reflect historical asset detail. The District will work to update these schedules, including accumulated depreciation on an annual basis. 13

View Audit 391783

Finding 1179392 (2025-001)

Material Weakness 2025

Letourneau University

TX

Student Financial Aid Special Tests & Provisions Reporting

Action Plan - These errors were the result of a new student information system. As part of the implementation process, CIP codes were incorrectly migrated over from our legacy system to the new system (Colleague). This resulted in program enrollment status errors. Corrective Actions Completed: The R...

Action Plan - These errors were the result of a new student information system. As part of the implementation process, CIP codes were incorrectly migrated over from our legacy system to the new system (Colleague). This resulted in program enrollment status errors. Corrective Actions Completed: The Registrar's Office conducted a comprehensive review of all active program CIP codes and corrected all identified discrepancies within the student information system. The Registrar's Office is coordinating with Student Financial Services to verify that the 22 sampled students' enrollment and program statuses are accurately reflected in NSLDS. Corrective Actions in Progress: The Registrar's Office is obtaining direct NSLDS access to ensure the office responsible for enrollment reporting can independently review and validate reported data. Access is expected to be finalized by February 27th, 2026. Preventative Controls: Beginning Spring 2026, the Registrar's Office will implement a recurring end-of-term ntrol review. A sample of 12 students will be selected each semester to verify that enrollment status, program status, and CIP code reporting are accurate between the student information system and NSLDS. Results of this review will be documented and retained, and any discrepancies will be corrected prior to the subsequent enrollment submission. The Registrar believes these corrective measures address the root cause of the finding and strengthen internal controls to ensure ongoing compliance with federal reporting requirements. Responsible Official: Danielle Jeffress, University Registrar Estimated Completion Date: May 30, 2026

View Audit 391780

Finding 1179390 (2025-002)

Material Weakness 2025

Genesee Community College

NY

Student Financial Aid Eligibility § 200.516

The College implemented additional procedures to allow earlier detection of fraud.

View Audit 391778

Finding 1179388 (2025-001)

Material Weakness 2025

Genesee Community College

NY

Student Financial Aid Reporting

The College will perform the mass processing for COD reporting on a more frequent basis to ensure reporting is timely.

View Audit 391778

Finding 1179387 (2025-001)

Material Weakness 2025

Cedar Ridge School District

AR

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

The Federal Programs Director, Paula Lovell, will ensure that all employees paid with Title I funds are assigned to eligible Title I positions. Paula Lovell will hold a monthly review meeting with the District Treasurer, Kathryn Powell, to review and monitor Title I expenditures and verify that all ...

The Federal Programs Director, Paula Lovell, will ensure that all employees paid with Title I funds are assigned to eligible Title I positions. Paula Lovell will hold a monthly review meeting with the District Treasurer, Kathryn Powell, to review and monitor Title I expenditures and verify that all salary and benefit payments charged to the program are appropriate.

View Audit 391757

Corrective Action Plans

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