Corrective Action Plans

Finding 1208511 (2025-044)

Material Weakness 2025

State of Alaska

AK

Equipment & Real Property Management § 200.303 § 200.311 § 200.313

Finding: 2025-044 - Auditors could not obtain sufficient appropriate evidence to verify compliance with Fish and Wildlife Cluster’s (FWC) equipment and real property management requirements. Questioned Costs: Indeterminate Assistance Listing Number: 15.605, 15.611 Assistance Listing Title: FWC Views...

Finding: 2025-044 - Auditors could not obtain sufficient appropriate evidence to verify compliance with Fish and Wildlife Cluster’s (FWC) equipment and real property management requirements. Questioned Costs: Indeterminate Assistance Listing Number: 15.605, 15.611 Assistance Listing Title: FWC Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): ADFG agrees that the policy and procedures for management of equipment, real property, and capital improvements are insufficient. Corrective Action (corrective action planned): ADFG will continue efforts to establish and implement procedures and training to ensure that all equipment, real property, and capital improvements are managed in strict compliance with federal requirements. For equipment management, ADFG will take the following actions: • Ensure capital and sensitive equipment is accounted for in IRIS through a fixed asset transaction (FN, FA, FM, FT, or FD). The FN process was implemented on July 1, 2024 and ties equipment to the purchasing document. However, additional work is needed to ensure the Federal Award Identification Number (FAIN) and Assistance Listing Number are consistently included in IRIS transactions to improve traceability and compliance. • Develop and implement standardized procedures for inventory management in IRIS in coordination with the Office of Procurement and Property Management, Department of Administration. • Create and distribute inventory logs for staff to use in remote locations to address challenges in retrieving inventory items during seasonal months. • Develop comprehensive training for staff involved in equipment management to ensure staff are well-trained and knowledgeable about inventory management procedures and compliance requirements. • Establish clear guidelines for the timely disposal of broken, failed, or obsolete equipment to ensure efficient and compliant disposal of unnecessary equipment. For real property and capital improvement projects, ADFG will take the following actions: • Real property records have been compiled and are pending upload to the federal TRACS system. Once this upload is complete, ADFG will develop procedures and tracking logs to ensure annual site visits are conducted and documented. • Develop department policies and procedures to ensure real property is managed according to federal requirements as authorized in grant awards. This effort will be coordinated with USFWS to ensure alignment with federal expectations. • Provide training to program and administrative staff on the Code of Federal Regulations requirements and proper management of departmental record-keeping logs, including site visit documentation and file maintenance. Completion Date (list anticipated completion date): December 31, 2026 Agency Contact (name of person responsible for corrective action): Eric Verrelli, Procurement Specialist V Jessica Hood, Accountant 5

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Finding 1208509 (2025-074)

Material Weakness 2025

State of Alaska

AK

HUD Housing Programs

Finding: 2025-074 - In our testing of the Federal Funding Accountability and Transparency Act, the required report was not filed during 2025. Questioned Costs: None Assistance Listing Number: 14.195, 14.249 Assistance Listing Title: Section 8 Project-Based Cluster Views of Responsible Officials (sta...

Finding: 2025-074 - In our testing of the Federal Funding Accountability and Transparency Act, the required report was not filed during 2025. Questioned Costs: None Assistance Listing Number: 14.195, 14.249 Assistance Listing Title: Section 8 Project-Based Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): AHFC agrees with the finding. Corrective Action (corrective action planned): The PHD is in the process of incorporating the reporting requirements and monetary thresholds for the FFATA Subaward Reporting System (FSRS) into our policies and procedures. Completion Date (list anticipated completion date): July 1,2026 Agency Contact (name of person responsible for corrective action): Bryan Butcher

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Finding 1208508 (2025-073)

Material Weakness 2025

State of Alaska

AK

HUD Housing Programs

Finding: 2025-073 - In our testing of eligibility, there were seven instances where the required documentation for the tenant was not available from the project operating under Section 8 during 2025. Questioned Costs: None Assistance Listing Number: 14.195, 14.249 Assistance Listing Title: Section 8...

Finding: 2025-073 - In our testing of eligibility, there were seven instances where the required documentation for the tenant was not available from the project operating under Section 8 during 2025. Questioned Costs: None Assistance Listing Number: 14.195, 14.249 Assistance Listing Title: Section 8 Project-Based Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): AHFC agrees with the finding. Corrective Action (corrective action planned): The PHD is in the process of amending its record retention schedule to include all client eligibility verification documents. Once completed, this will ensure that all client files contain all required eligibility documents as well as the most current reexamination documents. Completion Date (list anticipated completion date): July 1,2026 Agency Contact (name of person responsible for corrective action): Bryan Butcher

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Finding 1208507 (2025-075)

Material Weakness 2025

State of Alaska

AK

HUD Housing Programs Special Tests & Provisions

Finding: 2025-075 - In our testing of special tests and provisions, annual housing quality inspections did not occur for seven units at one of the properties operating under Section 8 during 2025. Questioned Costs: None Assistance Listing Number: 14.195, 14.249 Assistance Listing Title: Section 8 Pr...

Finding: 2025-075 - In our testing of special tests and provisions, annual housing quality inspections did not occur for seven units at one of the properties operating under Section 8 during 2025. Questioned Costs: None Assistance Listing Number: 14.195, 14.249 Assistance Listing Title: Section 8 Project-Based Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): AHFC agrees with the finding. Corrective Action (corrective action planned): The PHD has completed all annual unit inspections as identified in the finding and will continue to work with our landlords to ensure these inspections are completed as required. Additionally, we have updated our policies to comply with the Code of Federal Regulations and the Housing Assistance Payment (HAP) contract. Completion Date (list anticipated completion date): February 1, 2026 Agency Contact (name of person responsible for corrective action): Bryan Butcher

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Finding 1208503 (2025-043)

Material Weakness 2025

State of Alaska

AK

Subrecipient Monitoring § 200.303 § 200.332

Finding: 2025-043 - A review of six FY 25 PCSRT subrecipients’ subaward agreements found that one did not include an accurate unique entity identifier that matched the subrecipient’s name. Questioned Costs: None Assistance Listing Number: 11.438 Assistance Listing Title: PCSRT Views of Responsible O...

Finding: 2025-043 - A review of six FY 25 PCSRT subrecipients’ subaward agreements found that one did not include an accurate unique entity identifier that matched the subrecipient’s name. Questioned Costs: None Assistance Listing Number: 11.438 Assistance Listing Title: PCSRT Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): ADFG disagrees with this finding. During the audit, it was noted that the UEI listed in the subaward agreement contained a copy-and-paste error. This discrepancy was promptly corrected once identified. Under 2 CFR 170, the official compliance requirement for subaward reporting is the Federal Funding Accountability and Transparency Act (FFATA) submission through SAM.gov. In this case: • The correct UEI was verified in SAM.gov. • The FFATA report contained the correct UEI and was submitted timely. • The correct subrecipient was paid, and supporting documentation confirmed the subrecipient’ s identity. These facts demonstrate that the federal reporting requirement was met and that the error was limited to the internal agreement. The issue did not result in improper payments, misreporting to federal systems, or a breakdown in internal controls. This was an isolated clerical error that was promptly corrected during the audit. It does not represent a significant deficiency or material weakness. This seems more appropriately categorized as a minor observation or management comment regarding document review processes. Corrective Action (corrective action planned): DFG will reinforce internal review procedures to prevent similar copy-and-paste errors in the future. Completion Date (list anticipated completion date): N/A Agency Contact (name of person responsible for corrective action): Jessica Hood, Accountant 5

View Audit 399484

Finding 1208502 (2025-042)

Material Weakness 2025

State of Alaska

AK

Reporting Internal Control / Segregation of Duties § 200.303 § 200.328

Finding: 2025-042 - Two of four randomly selected FY 25 PCSRT SF-425 federal financial reports tested did not include the recipient share of expenditures. Questioned Costs: None Assistance Listing Number: 11.438 Assistance Listing Title: PCSRT Views of Responsible Officials (state whether your agenc...

Finding: 2025-042 - Two of four randomly selected FY 25 PCSRT SF-425 federal financial reports tested did not include the recipient share of expenditures. Questioned Costs: None Assistance Listing Number: 11.438 Assistance Listing Title: PCSRT Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): ADFG respectfully disagrees with the audit finding regarding SF-425 reporting and recipient share. During the audit period, the federal awarding agency transitioned to a new reporting system but did not issue updated written instructions, revised award terms, or formal guidance clarifying new SF-425 fields or reporting expectations. Under 2 CFR §200.328, recipients are required to submit financial reports as specified in the Federal award, and agencies may require only 0MB-approved, government-wide data elements. No updated award terms or instructions were provided to ADFG during this transition. System behavior clearly indicated that certain fields were not applicable. In Grants Online, the fields were grayed out, signaling they were not required. In contrast, eRA Commons left these fields open without any explanation or guidance. NOAA now requires these fields, but this requirement was not communicated at the time of the transition. This inconsistency demonstrates that the agency had not finalized or communicated enforceable requirements for these fields during the reporting period. DFG acted reasonably and consistently based on the information available. It would be inappropriate to penalize DFG for continuing to report under prior requirements or omitting data in fields that were not previously required. The Uniform Guidance places responsibility on awarding agencies to provide clear written guidance, transition timelines, and clarification on new reporting requirements before they become enforceable. For these reasons, DFG requests that this finding be reconsidered. Our reporting complied with the award terms and the system instructions available at the time, and any changes introduced by the agency were not formally communicated or incorporated into our award during the relevant reporting period. Corrective Action (corrective action planned): We will contact the awarding agency to confirm whether previously submitted reports must be revised to include the recipient share. We will also verify if this requirement applies only to future reporting and adjust our procedures accordingly. Completion Date (list anticipated completion date): April 30, 2026 Agency Contact (name of person responsible for corrective action): Jessica Hood, Accountant 5

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Finding 1208501 (2025-041)

Material Weakness 2025

State of Alaska

AK

Procurement, Suspension & Debarment Subrecipient Monitoring Reporting § 200.303

Finding: 2025-041 - One of six Pacific Coast Salmon Recovery Pacific Salmon Treaty (PCSRT) Federal Funding Accountability and Transparency Act (FFATA) reports tested was not submitted timely. Questioned Costs: None Assistance Listing Number: 11.438 Assistance Listing Title: PCSRT Views of Responsibl...

Finding: 2025-041 - One of six Pacific Coast Salmon Recovery Pacific Salmon Treaty (PCSRT) Federal Funding Accountability and Transparency Act (FFATA) reports tested was not submitted timely. Questioned Costs: None Assistance Listing Number: 11.438 Assistance Listing Title: PCSRT Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): Alaska Department of Fish & Game (ADFG) disagrees with this finding. The FFATA report for the FY2025 NOAA subaward was submitted one month late due to resource constraints while our team was actively implementing a corrective action plan (CAP) for a prior Office of Inspector General (OIG) federal audit finding related to FFATA reporting timeliness. During this period, we prioritized fulfilling the CAP requirements, which included a comprehensive reconciliation of all subawards across federal programs to ensure accuracy and compliance. This intensive remediation effort temporarily impacted our ability to meet standard reporting timelines. The delay was not the result of a new or separate control failure, but rather a timing issue directly tied to the corrective work already underway. Importantly: • The NOAA FFATA report was completed accurately as part of the same remediation workflow. • The delay occurred while addressing the previously identified issue and was resolved within the corrective action period established with the 01G. • The root cause was the same issue identified in the existing finding, and not a new or systemic breakdown. • Updated internal controls and revised procedures were implemented during this period and now apply uniformly across all programs, including NOAA. • These corrective actions have resulted in timely, comprehensive, and fully implemented processes designed to prevent recurrence. Given that the late NOAA FFATA report occurred within the active corrective action window and was resolved through the same documented process, we view this as part of the previously identified issue rather than a separate instance of noncompliance. The corrective actions were completed as planned and have strengthened our reporting controls to ensure ongoing compliance. Corrective Action (corrective action planned): ADFG has implemented formal policies and procedures to ensure timely processing and submission of FFATA reports, fully addressing the previous OIG audit finding. These procedures are now in place and actively followed, and ongoing monitoring has been established to verify continued compliance and prevent recurrence. Completion Date (list anticipated completion date): Completed April 15, 2025 Agency Contact (name of person responsible for corrective action): Jessica Hood, Accountant 5

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Finding 1208500 (2025-076)

Material Weakness 2025

State of Alaska

AK

Subrecipient Monitoring Cash Management Material Weakness § 200.303

Finding: 2025-076 - The Alaska Industrial Development and Export Authority’s (AIDEA) controls were not designed to detect noncompliance in program income reported in AIDEA’s annual report. During our testing of reports, we noted that the annual report tested did not report interest earned on deposit...

Finding: 2025-076 - The Alaska Industrial Development and Export Authority’s (AIDEA) controls were not designed to detect noncompliance in program income reported in AIDEA’s annual report. During our testing of reports, we noted that the annual report tested did not report interest earned on deposit accounts. The amount of interest income not included on the annual report totaled 167,023, which represents the cumulative interest income earned for the program from deposits since inception Questioned Costs: None Assistance Listing Number: 11.307 Assistance Listing Title: Economic Development Cluster COVID- 19 Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): Agree Corrective Action (corrective action planned): DCCED manages this program on behalf of AIDEA. DCCED will incorporate a new internal control procedure requiring that each year’s final EDA-209 report be reviewed and approved by AIDEA’s Controller or Chief Financial Officer prior to submission and includes backup that supports each number. This review step will ensure the completeness and accuracy of all future filings. Completion Date (list anticipated completion date): 06/30/2026 (or the date of when the next EAD-209 report is due) Agency Contact (name of person responsible for corrective action): jkornmuller@aidea.orq, aleavitt@aidea.orq, andy.macaulay@alaska.qov

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Finding 1208499 (2025-072)

Material Weakness 2025

State of Alaska

AK

Allowable Costs / Cost Principles Special Tests & Provisions Significant Deficiency § 200.303 § 200.329

Finding: 2025-072 - Alaska Energy Authority did not have controls in place for review of progress reports for this program. During our testing of reports, we noted that two of the five reports sampled did not have evidence of a formal review before submission. Questioned Costs: None Assistance Listi...

Finding: 2025-072 - Alaska Energy Authority did not have controls in place for review of progress reports for this program. During our testing of reports, we noted that two of the five reports sampled did not have evidence of a formal review before submission. Questioned Costs: None Assistance Listing Number: 10.859 Assistance Listing Title: Assistance to High Energy Cost Rural Communities Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): Agree Corrective Action (corrective action planned): Implement procedures to ensure that all compliance reports are reviewed by personnel independent of the preparer(s). Completion Date (list anticipated completion date): 01/15/2026 Agency Contact (name of person responsible for corrective action): Tim Sandstrom, Chief Operating Officer

View Audit 399484

Finding 1208498 (2025-050)

Material Weakness 2025

State of Alaska

AK

Allowable Costs / Cost Principles Special Tests & Provisions Procurement, Suspension & Debarment § 200.303

Finding: 2025-050 - Daily SNAP EBT reconciliations were not performed in FY 25. Questioned Costs: None Assistance Listing Number: 10.551, 10.561 Assistance Listing Title: SNAP Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, bri...

Finding: 2025-050 - Daily SNAP EBT reconciliations were not performed in FY 25. Questioned Costs: None Assistance Listing Number: 10.551, 10.561 Assistance Listing Title: SNAP Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department agrees with the finding. Corrective Action (corrective action planned): The Division of Public Assistance implemented a daily reconciliation and monitoring process and trained staff on the revised procedures. The division plans to be fully compliant and current in FY 2026. Completion Date (list anticipated completion date): The department anticipates the finding will be resolved in FY2026. Agency Contact (name of person responsible for corrective action): Pam Halloran, Assistant Commissioner

View Audit 399484

Finding 1208497 (2025-049)

Material Weakness 2025

State of Alaska

AK

Allowable Costs / Cost Principles Eligibility Special Tests & Provisions § 200.303

Finding: 2025-049 - DOH’s information technology staff did not properly limit user access to EIS during FY25. Questioned Costs: None Assistance Listing Number: 10.551, 10.561 Assistance Listing Title: SNAP Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the...

Finding: 2025-049 - DOH’s information technology staff did not properly limit user access to EIS during FY25. Questioned Costs: None Assistance Listing Number: 10.551, 10.561 Assistance Listing Title: SNAP Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department agrees with the finding. Corrective Action (corrective action planned): The Division of Public Assistance will revise and strengthen the EIS account reconciliation process to include a change in cadence and update protocols for sponsored accounts. Completion Date (list anticipated completion date): The department anticipates the finding will be resolved in FY2026. Agency Contact (name of person responsible for corrective action): Pam Halloran, Assistant Commissioner

View Audit 399484

Finding 1208496 (2025-048)

Material Weakness 2025

State of Alaska

AK

Allowable Costs / Cost Principles Eligibility Special Tests & Provisions § 200.303

Finding: 2025-048 - Testing of 72 FY 25 SNAP EBT issuances found two automated EIS benefit calculations that did not consider an increase in unearned income related to Alaska’s Senior Benefits Program. Questioned Costs: AL 10.551: 660 Assistance Listing Number: 10.551, 10.561 Assistance Listing Titl...

Finding: 2025-048 - Testing of 72 FY 25 SNAP EBT issuances found two automated EIS benefit calculations that did not consider an increase in unearned income related to Alaska’s Senior Benefits Program. Questioned Costs: AL 10.551: 660 Assistance Listing Number: 10.551, 10.561 Assistance Listing Title: SNAP Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department agrees with the finding. Corrective Action (corrective action planned): The Senior Benefits Program encountered a one-time mass change that did not result in an update on all affected cases. The Division of Public Assistance will correct the affected claims and refund associated Questioned Costs: The division will also review mass change protocols with leadership to ensure proper implementation to mitigate recurrence of resulting errors. Completion Date (list anticipated completion date): The department anticipates the finding will be resolved in FY2026. Agency Contact (name of person responsible for corrective action): Pam Halloran, Assistant Commissioner

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Finding 1208495 (2025-047)

Material Weakness 2025

State of Alaska

AK

Allowable Costs / Cost Principles Eligibility Special Tests & Provisions § 200.1 § 200.303

Finding: 2025-047 - The amount of FY 25 SNAP benefits reported to United States Department of Agriculture as issued by the State’s Electronic Benefits Transfer (EBT) contractor, Fidelity National Information Services (FIS), was 1,235,577 more than the amount of authorized benefits reported in data f...

Finding: 2025-047 - The amount of FY 25 SNAP benefits reported to United States Department of Agriculture as issued by the State’s Electronic Benefits Transfer (EBT) contractor, Fidelity National Information Services (FIS), was 1,235,577 more than the amount of authorized benefits reported in data from the Division of Public Assistance’s Eligibility Information System (EIS). Furthermore, FIS could not provide a reliable audit trail of issuances. Questioned Costs: AL 10.551: 1,235,577 Assistance Listing Number: 10.551, 10.561 Assistance Listing Title: Supplemental Nutrition Assistance Program (SNAP) Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department agrees with the finding but does not concur with the questioned costs. The Division of Public Assistance completes reconciliations between FIS daily transaction records and EBT Account Management Agent (AMA) data to ensure issuance accuracy. Corrective Action (corrective action planned): A workgroup identified the root causes of the discrepancies. A revised reporting process is being implemented to ensure all EBT payments are accurately captured, improving completeness and accuracy Daily reconciliations are now in place to support ongoing accuracy and reduce reliance on ad hoc reporting. As a result, the report previously developed for this audit by the EBT contractor, FIS, is not expected to be needed moving forward. Completion Date (list anticipated completion date): The department anticipates the finding will be resolved in FY2026. Agency Contact (name of person responsible for corrective action): Pam Halloran, Assistant Commissioner

View Audit 399484

Finding 1208490 (2025-009)

Material Weakness 2025

Milwaukee Public Schools

WI

Reporting Significant Deficiency Internal Control / Segregation of Duties § 200.303

Medicaid Cluster – Assistance Listing No. 93.778 Recommendation: The District should design and implement controls to ensure amounts reported are supported by expenditure of the District for eligible activities and positions. Explanation of disagreement with audit finding: There is no disagreement w...

Medicaid Cluster – Assistance Listing No. 93.778 Recommendation: The District should design and implement controls to ensure amounts reported are supported by expenditure of the District for eligible activities and positions. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The District will develop and implement internal controls to review personnel position indicators included in the quarterly Medicaid Cost Reporting against HR records to validate the position indicators are accurate as of the time of the submission and make corrections, as appropriate. This will ensure that all position-related expenditures included within the Medicaid Cost Reporting are eligible and supported when submitting claims to PCG. Further, the District will ensure that all appropriate supporting documentation, calculations, and workbooks that were utilized to prepare the claim are appropriately reviewed by management, agreed to supporting documentation, and appropriately retained as part of the internal controls. Name(s) of the contact person(s) responsible for corrective action: Accounting Director (Deputy CFO), Financial Reporting Manager, Director of Human Resources Data & Strategy Planned completion date for corrective action plan: 6/30/2026

View Audit 399474

Finding 1208489 (2025-007)

Material Weakness 2025

Milwaukee Public Schools

WI

Cash Management Significant Deficiency Internal Control / Segregation of Duties § 200.303

Medicaid Cluster – Assistance Listing No. 93.778 Recommendation: The District should design and implement controls to ensure required authorization to bill Medicare (Form M-5) is obtained prior to initial billing. We also recommend the District design and implement controls to ensure a copy of this ...

Medicaid Cluster – Assistance Listing No. 93.778 Recommendation: The District should design and implement controls to ensure required authorization to bill Medicare (Form M-5) is obtained prior to initial billing. We also recommend the District design and implement controls to ensure a copy of this form is retained in accordance with Federal and State requirements and is available for future required reviews. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The District will strengthen internal controls to ensure all required authorizations are obtained and properly maintained prior to billing. MPS will accomplish this through the execution of the following: • Implementing a pre-billing verification process to confirm a completed Form M-5 is on file before any initial Medicaid billing occurs, • Establishing a standardized documentation procedure to ensure all Forms M-5 are securely retained and readily accessible for review, • Creating a centralized tracking system to monitor the status of required authorizations for all eligible students, • Conducting periodic internal reviews to ensure compliance with authorization and documentation requirements, • Providing training to relevant staff on Medicaid billing requirements and record retention expectations. Name(s) of the contact person(s) responsible for corrective action: Budget Director, Accounting Director (Deputy CFO), Financial Reporting Manager Planned completion date for corrective action plan: Implementation of the new process is currently underway and will be remediated in the coming months of FY26 and into FY27.

View Audit 399474

Finding 1208488 (2025-006)

Material Weakness 2025

Milwaukee Public Schools

WI

Allowable Costs / Cost Principles § 200.303 § 200.403 § 200.430

Title II, Part A-Supporting Effective Instruction Stat Grants – Assistance Listing No. 84.367 Special Education Cluster (IDEA programs) – Assistance Listing No. 84.027, 84.173 Title I-A-Grants to Local Educational Agencies – Assistance Listing No. 84.010 Recommendation: The District should design an...

Title II, Part A-Supporting Effective Instruction Stat Grants – Assistance Listing No. 84.367 Special Education Cluster (IDEA programs) – Assistance Listing No. 84.027, 84.173 Title I-A-Grants to Local Educational Agencies – Assistance Listing No. 84.010 Recommendation: The District should design and implement controls to ensure semi-annual time and effort certification are obtained and reviewed timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: To address the material weakness related to untimely and incomplete approval of Time and Effort certifications, MPS implemented process improvements to strengthen internal controls, increase accountability, and ensure certifications are completed prior to reimbursement submissions. MPS performed the following with respect to enhancing the internal controls surrounding this process: Prior to Collection • Adjusted certification timelines to allow adequate review and approval, • Established centralized email account to improve communication reliability, • Reassigned responsibility to the ESEA Manager for stronger oversight, • Beginning FY26, implemented a monthly grant report to monitor expenditures and detect and correct errors in a timely manner, • Communicated certification timelines to district leadership in advance of the collection window. During Collection • Sent daily communications and district-wide reminders, • Monitored completion through daily reporting, • Provided real-time technical support. Post Collection Window • Continued system-generated reminders, • Conducted targeted outreach via email, phone, and virtual meetings, as appropriate, • Launched a formal escalation process through supervisory channels when needed as described in our communications outlined above. These actions are supported by documented procedures and enhanced oversight to ensure timely completion of certifications and compliance with federal cost requirements. Name(s) of the contact person(s) responsible for corrective action: State and Federal Program Director, ESEA Coordination and Compliance Manager Planned completion date for corrective action plan: Completed as of December 2025.

View Audit 399474

Finding 1208476 (2025-005)

Material Weakness 2025

Milwaukee Public Schools

WI

Allowable Costs / Cost Principles Cash Management Eligibility § 200.303 § 200.430

Special Education Cluster (IDEA programs) – Assistance Listing No. 84.027, 84.170 Recommendation: The District should implement controls that allow for the identification and proper classification of vendor payments to applicable grant period. Explanation of disagreement with audit finding: There is...

Special Education Cluster (IDEA programs) – Assistance Listing No. 84.027, 84.170 Recommendation: The District should implement controls that allow for the identification and proper classification of vendor payments to applicable grant period. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The District will strengthen internal controls to ensure that vendor payments are appropriately aligned with the correct grant reporting period. MPS will implement a standardized review process to validate that vendor invoices and related purchase orders are coded to the correct grant period, establish clear procedures for identifying the period of performance for goods and services, enhance coordination between program and finance staff to validate the timing and allowability of expenditures, conduct periodic monitoring of vendor payments to ensure compliance with grant period requirements, and provide training to relevant staff relating to grant period compliance and expenditure classification. Name(s) of the contact person(s) responsible for corrective action: Senior Director of Specialized Services, Accounting Director (Deputy CFO), Financial Reporting Manager Planned completion date for corrective action plan: 6/30/2026

View Audit 399474

Finding 1208469 (2025-001)

Material Weakness 2025

Winslow Village INC

MA

HUD Housing Programs

Management concurs and will transfer the required deposit.

View Audit 399467

Finding 1208468 (2025-001)

Material Weakness 2025

S.d.s.i. Housing Corporation, Inc.

KS

HUD Housing Programs Cash Management Eligibility

Management will contact HUD and negotiate a payment plan to return the ineligible funds of $135,824 withdrawn from the reserve for replacements.

View Audit 399458

Finding 1208467 (2025-001)

Material Weakness 2025

APPLIED RESEARCH INSTITUTE, INC

IN

Subrecipient Monitoring Reporting

2025-001 – Department of War – Congressional Directed Assistance – Assistance Listing No. 11.039 - Federal Award Number HQ00342520004 Material Noncompliance – L. Reporting – Federal Funding Accountability and Transparency Act (FFATA) Recommendation: The Auditors recommend reviewing policies and proc...

2025-001 – Department of War – Congressional Directed Assistance – Assistance Listing No. 11.039 - Federal Award Number HQ00342520004 Material Noncompliance – L. Reporting – Federal Funding Accountability and Transparency Act (FFATA) Recommendation: The Auditors recommend reviewing policies and procedures around FFATA reporting to ensure timely reporting. Corrective Action Taken: We agree with the recommendation and have implemented the corrective action in December 2025.

View Audit 399449

Finding 1208464 (2025-003)

Material Weakness 2025

Manor Apartments, Inc.

MD

HUD Housing Programs Cash Management

a. Comments on the Finding and Each Recommendation During the year ended December 31, 2024, management did not submit Form HUD-9250, "Fund Authorization" to HUD upon termination of the PRAC. As a result, management did not remit excess residual receipts of $418 as of April 30, 2025, to HUD. b. Actio...

a. Comments on the Finding and Each Recommendation During the year ended December 31, 2024, management did not submit Form HUD-9250, "Fund Authorization" to HUD upon termination of the PRAC. As a result, management did not remit excess residual receipts of $418 as of April 30, 2025, to HUD. b. Action(s) Taken or Planned on the Finding The 2025 Manor renewal was submitted to HUD before the excess income was in the account. A 9250 for $584.59 has been submitted to HUD for approval of returning in excess residual receipts.

View Audit 399440

Finding 1208463 (2025-002)

Material Weakness 2025

Manor Apartments, Inc.

MD

HUD Housing Programs Internal Control / Segregation of Duties

a. Comments on the Finding and Each Recommendation During the year ended December 31, 2025, management withdrew $3,169 from the replacement reserve account without HUD approval. b. Action(s) Taken or Planned on the Finding On 03.04.2026, management corrected this issue by depositing $3,169 into the ...

a. Comments on the Finding and Each Recommendation During the year ended December 31, 2025, management withdrew $3,169 from the replacement reserve account without HUD approval. b. Action(s) Taken or Planned on the Finding On 03.04.2026, management corrected this issue by depositing $3,169 into the replacement reserve account. Furthermore, management has implemented a strengthened internal control process requiring a three-level review and approval of all replacement reserve withdrawals. Specifically, the Vice President of Operations, Regional Manager, and Controller must each review and approve the request prior to any transfer of funds to ensure compliance with HUD approved withdrawals.

View Audit 399440

Finding 1208462 (2025-001)

Material Weakness 2025

Manor Apartments, Inc.

MD

HUD Housing Programs Eligibility

a. Comments on the Finding and Each Recommendation Management agrees that the EIV Income Report for two selected files were not generated in a timely manner, as required by HUD guidelines. Management agrees that a portion of the tenant lease files reviewed were not signed/completed within the 120 da...

a. Comments on the Finding and Each Recommendation Management agrees that the EIV Income Report for two selected files were not generated in a timely manner, as required by HUD guidelines. Management agrees that a portion of the tenant lease files reviewed were not signed/completed within the 120 day time frame. b. Action(s) Taken or Planned on the Finding Management compliance is addressing the generating of EIV reports to align with verification dates (<120 days) rather than when annual recertification notices are generated/sent (at least 120 days). Delays in recertification completion have improved; a majority of the certifications reviewed were effective within first 6 months of transition while the site was still adjusting to new software and management. Additional training has been provided to emphasize the importance of timely reporting and completion.

View Audit 399440

Finding 1208461 (2025-002)

Material Weakness 2025

Victory Oaks, Inc.

MD

Subrecipient Monitoring HUD Housing Programs Matching / Level of Effort / Earmarking

a.Comments on the Finding and Each Recommendation During the year ended December 31, 2025, the project did not make required monthly deposits to the replacement reserve in the amount of $15,431. Victory Oaks is required to make monthly deposits to the reserve of $2,204.Action(s) Taken or Planned on ...

a.Comments on the Finding and Each Recommendation During the year ended December 31, 2025, the project did not make required monthly deposits to the replacement reserve in the amount of $15,431. Victory Oaks is required to make monthly deposits to the reserve of $2,204.Action(s) Taken or Planned on the Finding b.Action(s) Taken or Planned on the Finding On January 13, 2026, management funded the replacement reserve in full.

View Audit 399437

Finding 1208460 (2025-001)

Material Weakness 2025

Victory Oaks, Inc.

MD

HUD Housing Programs Eligibility

a.Comments on the Finding and Each Recommendation Management agrees that the EIV Income Report for certain selected files were not generated in a timely manner, as required by HUD guidelines. Management agrees that a portion of the tenant lease files reviewed were not signed/completed within the 120...

a.Comments on the Finding and Each Recommendation Management agrees that the EIV Income Report for certain selected files were not generated in a timely manner, as required by HUD guidelines. Management agrees that a portion of the tenant lease files reviewed were not signed/completed within the 120 day time frame. b. Action(s) Taken or Planned on the Finding Management compliance is addressing the generating of EIV reports to align with verification dates (<120 days) rather than when annual recertification notices are generated/sent (at least 120 days). Delays in recertification completion have improved; a majority of the certifications reviewed were effective within first 6 months of transition while the site was still adjusting to new software and management. Additional training has been provided to emphasize the importance of timely reporting and completion.

View Audit 399437

Corrective Action Plans

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