Corrective Action Plans

Finding 1228584 (2025-003)

Material Weakness 2025

Town of Boxford

MA

Subrecipient Monitoring Allowable Costs / Cost Principles Procurement, Suspension & Debarment

Audit Finding Reference: 2025-003 Document Policies and Procedures Over Federal Awards Planned Corrective Action: This finding was identified by the Town’s independent auditor during the FY2025 single audit and was not issued by a federal awarding agency. The Assistant Town Administrator/Finance Dir...

Audit Finding Reference: 2025-003 Document Policies and Procedures Over Federal Awards Planned Corrective Action: This finding was identified by the Town’s independent auditor during the FY2025 single audit and was not issued by a federal awarding agency. The Assistant Town Administrator/Finance Director will prepare a concise federal awards procedures addendum addressing allowable costs, employee travel, cash management, procurement, conflicts of interest, and subrecipient monitoring. The addendum will incorporate existing Town policies by reference where they already address a requirement and will identify the responsible finance and departmental roles. Following management review and approval, the addendum will be provided to employees who administer federal awards and retained with the Town’s financial policies. It will be updated when federal requirements or the Town’s federal grant activity materially change. Planned Implementation Date of Corrective Action: October 31, 2026 Person Responsible for Corrective Action: Assistant Town Administrator/Finance Director, with oversight by the Town Administrator

View Audit 410210

Finding 1228583 (2025-002)

Material Weakness 2025

Town of Boxford

MA

Reporting

Audit Finding Reference: 2025-002 Improve Controls Over Preparation and Review of the Schedule of Expenditures of Federal Awards (SEFA) Planned Corrective Action: This finding was identified by the Town’s independent auditor during the FY2025 single audit and was not issued by a federal awarding age...

Audit Finding Reference: 2025-002 Improve Controls Over Preparation and Review of the Schedule of Expenditures of Federal Awards (SEFA) Planned Corrective Action: This finding was identified by the Town’s independent auditor during the FY2025 single audit and was not issued by a federal awarding agency. In any year in which the Town is required to prepare a Schedule of Expenditures of Federal Awards (SEFA), the Town Accountant will prepare the schedule from the general ledger and grant records, confirm federal award information with affected departments, and complete a brief preparation checklist. The Assistant Town Administrator/Finance Director will independently review the SEFA for completeness and agreement to the general ledger before it is provided to the auditors. The schedule, supporting reconciliation, and signed checklist will be retained. Planned Implementation Date of Corrective Action: Before the next SEFA is provided to the auditors, when a SEFA is required Person Responsible for Corrective Action: Assistant Town Administrator/Finance Director and Town Accountant

View Audit 410210

Finding 1228582 (2025-002)

Material Weakness 2025

Stevens Point Housing Authority

WI

HUD Housing Programs

SPHA is required to update the obligation and expenditure amounts for each open Capital Fund grant at the beginning of each month. The timing of the monthly update was an administrative error, as it was processed before the voucher request. As recommended, SPHA will ensure that funds designated for ...

SPHA is required to update the obligation and expenditure amounts for each open Capital Fund grant at the beginning of each month. The timing of the monthly update was an administrative error, as it was processed before the voucher request. As recommended, SPHA will ensure that funds designated for operations are obligated when the corresponding funds are drawn. This process will help ensure that future monthly updates accurately reflect the timing of obligations and expenditures.

View Audit 410209

Finding 1228581 (2025-001)

Material Weakness 2025

Stevens Point Housing Authority

WI

HUD Housing Programs

In late 2025, the Stevens Point Housing Authority (SPHA) transitioned its primary banking relationship from Chase Bank to Associated Bank and obtained a signed depository agreement from Associated Bank. As of December 2025, SPHA no longer utilized Chase Bank for its business banking activities and t...

In late 2025, the Stevens Point Housing Authority (SPHA) transitioned its primary banking relationship from Chase Bank to Associated Bank and obtained a signed depository agreement from Associated Bank. As of December 2025, SPHA no longer utilized Chase Bank for its business banking activities and to receive HUD funds. All primary banking activities and related funds are maintained through Associated Bank. The transfer of funds from the Chase Bank account to the Associated Bank account occurred during the third quarter of 2025 through January 2026 as part of the transition. The Chase account has remained open solely to preserve access to the account and any historical online banking information that may be needed during the completion of the 2025 audit or for other administrative purposes. Following completion and HUD approval of the 2025 audit, SPHA plans to formally close the remaining Chase Bank account.

View Audit 410209

Finding 1228568 (2025-002)

Material Weakness 2025

Feedmore Western New York, Inc. and Related Entity

NY

Procurement, Suspension & Debarment § 200.317 § 200.318 § 200.327

Management agrees with the finding and will develop and implement written procurement procedures consistent with Uniform Guidance requirements.

View Audit 410201

Finding 1228562 (2025-001)

Material Weakness 2025

Corewell Health & Affiliates

MI

Subrecipient Monitoring Reporting § 200.303

Finding 2025-001 Identification of the federal program: Federal Agency: U.S. Department of Health and Human Services (HHS), Health Resources and Services Administration (HRSA) Assistance Listing: 93.926 Healthy Start Initiative (HSI) Pass-Through Grantor: Not applicable Award Number: H4903591 Award ...

Finding 2025-001 Identification of the federal program: Federal Agency: U.S. Department of Health and Human Services (HHS), Health Resources and Services Administration (HRSA) Assistance Listing: 93.926 Healthy Start Initiative (HSI) Pass-Through Grantor: Not applicable Award Number: H4903591 Award Period: 5/1/2025-3/31/2026 Summary of Finding: Four instances where the required Federal Funding Accountability and Transparency Act (FFATA) reports were not submitted in SAM.gov timely in FY 2025. In addition, we noted for all six FFATA reports that were submitted in SAM.gov, there was no evidence of review and approval of the reports prior to submission. Under the HSI program, there were five subrecipients that had a total of six subawards (one new agreement and five amendments) in FY 2025. Total subrecipient’s costs are $750,822 in FY 2025. The total federal expenditures for the HSI program for FY 2025 were $1,052,118. Corrective Action Plan: Management has implemented a comprehensive corrective action plan to address the FFATA reporting deficiencies identified in the prior audit. Effective September 1, 2025, Corewell Health established a formal written FFATA reporting procedure that includes detailed requirements for identifying and reporting amended subawards throughout the award lifecycle. The procedure also requires documented supervisory review and approval of all FFATA submissions prior to filing to ensure completeness, accuracy, and compliance with federal reporting requirements. The procedure has been formally communicated to and implemented by the Office of Sponsored Programs and Research Finance teams. Ongoing training, monitoring, and periodic reviews of compliance with the procedure have been incorporated into operational processes to reinforce adherence to reporting requirements and to prevent recurrence. Although these corrective actions were implemented effective September 1, 2025, certain FFATA reporting deadlines applicable to the current audit period occurred before the implementation date. As a result, reports due prior to September 1, 2025 were not submitted within the required timeframe and did not include documented evidence of review before submission. Consequently, the finding was reported as a repeat finding in the current audit period. Management believes the corrective actions now in place adequately address the underlying control deficiencies and will support timely and compliant FFATA reporting going forward. Individuals Responsible for Corrective Action: Paula Schuiteman-Bishop, Vice President, Research Administration, Joe Fugitt, Senior Director, Research Administration, Development and Billing Integrity, Jodi Bohnhorst, Director, Research Development, Brandy Jurdzy, Manager, Research Sponsored Programs Timing of corrective action: September 1, 2025 and going forward.

View Audit 410192

Finding 1228558 (2025-001)

Material Weakness 2025

Athol-Royalston Regional School District

MA

Procurement, Suspension & Debarment Material Weakness School Nutrition Programs § 200.319

Condition: A competitive procurement process was not performed for one vendor selected for testing. Corrective Action Planned: The District has reviewed procurement procedures related to the Child Nutrition Program and has taken corrective action to ensure compliance with federal procurement require...

Condition: A competitive procurement process was not performed for one vendor selected for testing. Corrective Action Planned: The District has reviewed procurement procedures related to the Child Nutrition Program and has taken corrective action to ensure compliance with federal procurement requirements under 2 CFR 200.318-200.326. All food service vendors are now procured through appropriate procurement procedures, including solicitation and documentation of vendor selection as required by federal regulations. The District will maintain procurement records including solicitations, bids or quotes received, vendor selection documentation, contracts, invoices, and payment records. The Business Office will work with the Food Service Department to ensure that all future procurements under federal programs follow required federal, state and local procurement standards. Staff responsible for procurement will be reminded of documentation and competitive bidding requirements. Procurement documentation will be periodically reviewed by the Business Office to ensure ongoing compliance. Anticipated Completion Date: Implemented March 1, 2026 Contact: Nancy J. Konisky, Business Manager

View Audit 410186

Finding 1228553 (2025-002)

Material Weakness 2025

Housing Authority of the County of Lawrence

PA

Subrecipient Monitoring Allowable Costs / Cost Principles Eligibility § 200.430

Program: Public Housing Operating Fund AL Number: 14.850 Finding Number: 2025-002 Audit Finding (Copied & Pasted Directly from Auditor’s Report): Condition: During the audit we observed documentation showing employees recording a full 8 hour work day on time sheets while leaving work early. Manageme...

Program: Public Housing Operating Fund AL Number: 14.850 Finding Number: 2025-002 Audit Finding (Copied & Pasted Directly from Auditor’s Report): Condition: During the audit we observed documentation showing employees recording a full 8 hour work day on time sheets while leaving work early. Management was instructed to cease tracking and compensate employees for full time anyway. Context: Employee(s) doing the following activities and still getting compensated for a full 8 hour work day; Employee(s) leaving their assigned worksite prior to the end of work day, employee(s) not calling off or leaving early for appointments without correctly calling off nor submitting the proper leave slips, employee(s) arriving late and leaving early daily. Cause: Management override and lack of monitoring/enforcement Criteria: According to 2 CFR 200.430 Compensation - personal services, charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed Corrective Action to Be Taken: Reinstatement of accurate timekeeping with outlined policy and procedures including a discipline action plan for inaccurate payroll and leave slips submission. Strengthened controls and training; Support of management without overrides. Contact Responsible for Corrective Action: Gene Digennaro, Interim Executive Director PO Box 988 481 Neshannock Avenue New Castle, PA 16103 724-656-5100 ext. 204 gdigennaro@lawrencecountyha.com Tara Sheffler, Comptroller PO Box 988 481 Neshannock Avenue New Castle, PA 16103 724-656-5100 ext. 210 tsheffler@lawrencecountyha.com

View Audit 410183

Finding 1228551 (2025-001)

Material Weakness 2025

Housing Authority of Douglas County

GA

HUD Housing Programs Special Tests & Provisions Significant Deficiency

Finding 2025-001 – Special Tests and Provisions – RAD Replacement Reserve – Significant Deficiency ALN 14.195 Corrective Action Plan: The results of this finding were due to an unintentional calculation error. During the preparation of the reserve activity reconciliation, the individual responsible ...

Finding 2025-001 – Special Tests and Provisions – RAD Replacement Reserve – Significant Deficiency ALN 14.195 Corrective Action Plan: The results of this finding were due to an unintentional calculation error. During the preparation of the reserve activity reconciliation, the individual responsible inadvertently failed to account for withdrawals that had already been approved and processed during the year. As a result, the calculation incorrectly netted deposits and withdrawals, leading to an erroneous additional withdrawal amount. Management has determined that this was an isolated human error rather than a deficiency in policy or intent. To prevent a recurrence, a standardized reconciliation worksheet has been developed and will be completed annually to verify replacement reserve activity and ensure that all future withdrawals are accurately calculated and properly authorized before funds are disbursed. Person Responsible: Jennifer Farmer, Executive Director Anticipated Completion Date: December 31, 2026

View Audit 410177

Finding 1228516 (2025-002)

Material Weakness 2025

Commonwealth of Puerto Rico Department of Natural and Environmental Resources

PR

SEE THE CORRECTIVE ACTION PLAN FOR CHART/TABLE

View Audit 410152

Finding 1228506 (2025-001)

Material Weakness 2025

Mobile County Housing Authority

AL

HUD Housing Programs

2025-001 ALN 14.871 – Housing Voucher Cluster – Eligibility Management acknowledged the finding and will follow the Auditor's recommendations as listed in the Schedule of Findings and Questioned Costs. Person Responsible for Correction of Finding: Ms. Lori Nettles, Interim Executive Director Project...

2025-001 ALN 14.871 – Housing Voucher Cluster – Eligibility Management acknowledged the finding and will follow the Auditor's recommendations as listed in the Schedule of Findings and Questioned Costs. Person Responsible for Correction of Finding: Ms. Lori Nettles, Interim Executive Director Projected Completion Date: December 31, 2026

View Audit 410149

Finding 1228505 (2025-007)

Material Weakness 2025

Housing Authority of Frankfort

KY

HUD Housing Programs § 200.334

Finding 2025-007 –Waiting List – Eligibility – Internal Control over Waiting Lists – ALN 14.871 Housing Choice Voucher Program, ALN 14.850 Low Rent Public Housing Program – Noncompliance and Material Weakness Corrective Action Plan: • Preserve a dated copy or system extract of each waiting list at m...

Finding 2025-007 –Waiting List – Eligibility – Internal Control over Waiting Lists – ALN 14.871 Housing Choice Voucher Program, ALN 14.850 Low Rent Public Housing Program – Noncompliance and Material Weakness Corrective Action Plan: • Preserve a dated copy or system extract of each waiting list at material selection and offer points; • Retain applicant rank and preference information; • Document selections; • Establish a sufficient audit trail; • Reconcile written procedures with the Administrative Plan and ACOP; and • Include waiting-list records in the formal retention schedule. Person Responsible: Jennifer Oberlin, Executive Director, with oversight and approval by the Board of Commissioners, where applicable. Anticipated Completion Date: October 30, 2026

View Audit 410146

Finding 1228504 (2025-005)

Material Weakness 2025

Housing Authority of Frankfort

KY

HUD Housing Programs

Finding 2025-005 – Tenant Files – Eligibility – ALN 14.871 Housing Choice Voucher Program – Noncompliance and Material Weakness Corrective Action Plan: Immediate Corrective Actions are: • Begin targeted quality-control reviews of HCV and public housing files; • Correct missing or incomplete document...

Finding 2025-005 – Tenant Files – Eligibility – ALN 14.871 Housing Choice Voucher Program – Noncompliance and Material Weakness Corrective Action Plan: Immediate Corrective Actions are: • Begin targeted quality-control reviews of HCV and public housing files; • Correct missing or incomplete documentation; • Verify income calculations and deductions; • Confirm citizenship and identity documentation; • Confirm HAP contracts and EIV reports; • Confirm inspections and annual recertifications; • Review lead-based paint disclosures; and document corrective actions. Following the adoption of updated formal policies and procedures – implement long term corrective actions. Long Term: • Establish a formalized, organization-wide QA/QC and Monitoring Framework that includes: o File Reviews o Wait List QC Checklists & Wait List Archive Requirements o IMS/PIC Reporting Controls o Procurement Reviews o Financial Reviews o Internal Audit Checklists o Internal Monitoring Schedule o Corrective Action Tracking • Create a structured monitoring schedule to verify that internal controls continue to operate exactly as designed. • Develop a standardized reporting template to log control exceptions, track communication protocols, and document the successful remediation of identified deficiencies. • Develop standardized onboarding program that incorporates training on core organizational policies, ethical expectations and foundational internal control responsibilities. • Develop Agency-Wide Training Calendar and CE Requirements and Annual Policy Certifications and employ a system to track and archive all. Person Responsible: Jennifer Oberlin, Executive Director, with oversight and approval by the Board of Commissioners, where applicable. Anticipated Completion Date: February 26, 2027

View Audit 410146

Finding 1228503 (2025-002)

Material Weakness 2025

Housing Authority of Frankfort

KY

HUD Housing Programs Procurement, Suspension & Debarment § 200.303 § 200.317 § 200.318 § 200.327

Finding 2025-002 – Policies and Procedures Require Review and Update – ALN 14.871 Housing Choice Voucher Program, ALN 14.850 Low Rent Public Housing, ALN 14.872 Capital Fund Program – Significant Deficiency Corrective Action Plan: Strengthening Board governance, ethical expectations, policy ownershi...

Finding 2025-002 – Policies and Procedures Require Review and Update – ALN 14.871 Housing Choice Voucher Program, ALN 14.850 Low Rent Public Housing, ALN 14.872 Capital Fund Program – Significant Deficiency Corrective Action Plan: Strengthening Board governance, ethical expectations, policy ownership, accountability, and delegated authority. Initial Deliverables • Code of Ethics; • Conflict-of-Interest Policy; • Whistleblower and Reporting Policy; • Delegation of Authority Matrix; • Spending and Approval Authority Matrix; • Signature Authority Matrix; • Policy Development and Review Policy; • Board Governance Framework; • Annual policy acknowledgment process; and • Governance training plan. Standardize the Housing Authority’s major operating processes and reduce reliance on undocumented institutional knowledge. Initial Deliverables • Standard Operating Procedure framework; • Priority SOP inventory; • Housing Choice Voucher processing SOPs; • Public housing occupancy and recertification SOPs; • Waiting-list administration SOPs; • Inspection scheduling and tracking procedures; • Intake and communication procedures; • Position-responsibility matrix; • Updated job descriptions; • Workload assessment; • Staff onboarding procedures; and • Cross-training plan. Improve financial accuracy, safeguarding of assets, segregation of duties, reconciliations, reporting, and management review. Initial Deliverables • Financial Policies and Procedures Manual; • Accounts-payable controls; • Check-run and payment-review procedures; • Payroll approval procedures; • Cash-handling procedures; • Laundry-revenue procedures; • Bank and general-ledger reconciliation procedures; • Monthly and annual financial-review checklist; • Audit-adjustment reconciliation procedures; • Fixed-asset and nonexpendable-equipment inventory procedures; • Capitalization policy update; • Investment policy update; • Creative Housing financial-accounting review; • Inter-entity transaction policy; • Corrective-action plan for questioned costs; • Financial close calendar; • CFO and Executive Director review responsibilities; and • Board financial dashboard. Person Responsible: Jennifer Oberlin, Executive Director, with oversight and approval by the Board of Commissioners, where applicable. Anticipated Completion Date: • Phase 1: Target Date of completion: November 30, 2026 o Implementation and Communication about the Red Flags Ethics Hotline o Identification and creation of needed policies and structural tools o Updating of current policies as needed • Phase 2: Target Date of Completion: April 30, 2027 o Training on new policies/expectations and accountability standards.

View Audit 410146

Finding 1228502 (2025-004)

Material Weakness 2025

Housing Authority of Frankfort

KY

Procurement, Suspension & Debarment

Finding 2025-004 – Procurement Deficiencies – Procurement and Suspension and Debarment – ALN 14.850 Low Rent Public Housing, ALN 14.872 Capital Fund Program – Noncompliance and Material Weakness Corrective Action Plan: Adopt the Local Public Agency provisions of the Kentucky Model Procurement Code c...

Finding 2025-004 – Procurement Deficiencies – Procurement and Suspension and Debarment – ALN 14.850 Low Rent Public Housing, ALN 14.872 Capital Fund Program – Noncompliance and Material Weakness Corrective Action Plan: Adopt the Local Public Agency provisions of the Kentucky Model Procurement Code contained in KRS 45A.345 through KRS 45A.460 as the Housing Authority's in conjunction with applicable federal requirements and HUD regulations as our procurement framework. Immediate Corrective Actions: o Require written procurement planning before major purchases; o Verify the correct procurement method based on the total anticipated contract value; o Require complete documentation of competition; o Document sole-source determinations when applicable; o Require Board approval for major procurements as established by revised policy; o Preserve bids, quotes, evaluations, approvals, contracts, and payment records; o Review pending procurements before award. Create a Procurement and Contract Administration Manual to include: • Procurement thresholds and approval requirements; • Board-approval requirements for major procurements; • Independent Cost Estimate procedures; • Cost and price analysis procedures; • Small-purchase procedures; • Sealed-bid procedures; • Competitive-proposal procedures; • Sole-source and noncompetitive procurement procedures; • Emergency procurement procedures; • Procurement planning checklist; • Solicitation templates; • Evaluation and scoring forms; • Conflict-of-interest certifications; • Procurement-file checklist; • Contract monitoring procedures; • Change-order procedures; • Invoice-review procedures; • Contract-closeout checklist; and Procurement training. Person Responsible: Jennifer Oberlin, Executive Director, with oversight and approval by the Board of Commissioners, where applicable. Anticipated Completion Date: October 30, 2026

View Audit 410146

Finding 1228499 (2025-006)

Material Weakness 2025

Housing Authority of Frankfort

KY

HUD Housing Programs § 200.303

Finding 2025-006 – Tenant Files – Eligibility – ALN 14.850 Low Rent Public Housing Program – Noncompliance and Material Weakness Corrective Action Plan: Immediate Corrective Actions are: • Begin targeted quality-control reviews of HCV and public housing files; • Correct missing or incomplete documen...

Finding 2025-006 – Tenant Files – Eligibility – ALN 14.850 Low Rent Public Housing Program – Noncompliance and Material Weakness Corrective Action Plan: Immediate Corrective Actions are: • Begin targeted quality-control reviews of HCV and public housing files; • Correct missing or incomplete documentation; • Verify income calculations and deductions; • Confirm citizenship and identity documentation; • Confirm HAP contracts and EIV reports; • Confirm inspections and annual recertifications; • Review lead-based paint disclosures; and document corrective actions. Following the adoption of updated formal policies and procedures – implement long term corrective actions. Long Term: • Establish a formalized, organization-wide QA/QC and Monitoring Framework that includes: o File Reviews o Wait List QC Checklists & Wait List Archive Requirements o IMS/PIC Reporting Controls o Procurement Reviews o Financial Reviews o Internal Audit Checklists o Internal Monitoring Schedule o Corrective Action Tracking • Create a structured monitoring schedule to verify that internal controls continue to operate exactly as designed. • Develop a standardized reporting template to log control exceptions, track communication protocols, and document the successful remediation of identified deficiencies. • Develop standardized onboarding program that incorporates training on core organizational policies, ethical expectations and foundational internal control responsibilities. • Develop Agency-Wide Training Calendar and CE Requirements and Annual Policy Certifications and employ a system to track and archive all. Person Responsible: Jennifer Oberlin, Executive Director, with oversight and approval by the Board of Commissioners, where applicable. Anticipated Completion Date: February 26, 2027

View Audit 410146

Finding 1228497 (2025-003)

Material Weakness 2025

Housing Authority of Frankfort

KY

HUD Housing Programs

Finding 2025-003 – Public Housing Advance to Creative Housing Limited Partnership – ALN 14.850 Low Rent Public Housing Program – Noncompliance and Material Weakness Corrective Action Plan: • Determine the status and appropriate repayment plan for the questioned public housing advance; • Obtain and r...

Finding 2025-003 – Public Housing Advance to Creative Housing Limited Partnership – ALN 14.850 Low Rent Public Housing Program – Noncompliance and Material Weakness Corrective Action Plan: • Determine the status and appropriate repayment plan for the questioned public housing advance; • Obtain and reconcile mortgage-note statements; • Determine the correct accounting and financial-statement presentation; • Obtain missing prior-year financial and tax records; • review inter-entity transactions; and • Establish written approval requirements for future advances, loans, or transfers. Person Responsible: Jennifer Oberlin, Executive Director, with oversight and approval by the Board of Commissioners, where applicable. Anticipated Completion Date: November 30, 2026

View Audit 410146

Finding 1228495 (2025-001)

Material Weakness 2025

City of Charleston, South Carolina

SC

Reporting Procurement, Suspension & Debarment Internal Control / Segregation of Duties

Corrective Action Plan: The City of Charleston will implement internal controls and procedures to ensure all required reports are prepared, reviewed, and submitted within the program’s required timeframes, and with the correct amounts. Anticipated Completion Date: Fiscal Year 2026

View Audit 410145

Finding 1228493 (2025-002)

Material Weakness 2025

Pierre Indian Learning Center

SD

Reporting Internal Control / Segregation of Duties § 200.512

Corrective Action Plan for Finding 2025-002 Finding Title: Noncompliance with Single Audit Report Submission Requirements Federal Program(s): All programs included in the FY 2025 Single Audit Contact Person Responsible for Corrective Action: Dr. Veronica Morley, Superintendent Anticipated Completion...

Corrective Action Plan for Finding 2025-002 Finding Title: Noncompliance with Single Audit Report Submission Requirements Federal Program(s): All programs included in the FY 2025 Single Audit Contact Person Responsible for Corrective Action: Dr. Veronica Morley, Superintendent Anticipated Completion Date: March 31, 2027 Corrective Action Plan: Management concurs with the finding. The delay in submitting the Single Audit reporting package to the Federal Audit Clearinghouse was due delayed completion of audited financial statements. The school is in the process of getting current with audited financials statements.

View Audit 410142

Finding 1228474 (2025-002)

Material Weakness 2025

Town of Paradise

CA

Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management § 200.309

Condition: The Town incurred and charged expenditures totaling $30,826 to a FEMA Public Assistance project after the approved period of performance ended on October 31, 2024. The Town submitted a formal request to extend the period of performance on September 8, 2025. As of March 19, 2026, FEMA had ...

Condition: The Town incurred and charged expenditures totaling $30,826 to a FEMA Public Assistance project after the approved period of performance ended on October 31, 2024. The Town submitted a formal request to extend the period of performance on September 8, 2025. As of March 19, 2026, FEMA had communicated that the extension request has been denied. However, FEMA reimbursed the Town for the expenditures incurred after October 31, 2024. As of the date of this audit report, FEMA has not indicated whether the reimbursement will ultimately be retained or subject to recovery. Corrective Action Plan Corrective Action Planned: The Town will implement a grant expenditure review checklist requiring pre-approval for any costs beyond the approved period; train all grant staff on compliance requirements; update internal controls. The Town will also document all correspondence whether that be by phone, email or written correspondence with FEMA when it comes to deadline extensions. The Town’s FEMA-funded recovery projects are complex, multi-year projects associated with rebuilding the community. Many projects have extended beyond their original completion dates due to factors including the pandemic, supply-chain and world trade impacts, weather, labor availability, construction timelines, and contract procurement requirements. In addition, frequent turnover among FEMA personnel assigned to the Town’s recovery projects has at times resulted in changes in points of contact, delays in responses, and extended processing times for approvals, determinations, and extension requests. These circumstances have contributed to the length and complexity of administering projects that already require significant coordination over multiple years. The Town has continued to work closely with FEMA throughout this process and has received approvals for extensions on recovery projects. In this instance, the expenditures identified in the finding occurred after the original October 31, 2024 period and were ultimately reimbursed by FEMA. Name(s) of Contact Person(s) Responsible for Corrective Action: Aimee Beleu, Finance Director Anticipated Completion Date: The corrective action will be implemented to take effect for the audit of the FY 2025-26 financial statements.

View Audit 410131

Finding 1228473 (2025-003)

Material Weakness 2025

Town of Paradise

CA

Reporting Material Weakness § 200.512

Condition: The Town did not submit its single audit reporting package or data collection form within the required timeline. Corrective Action Plan Corrective Action Planned: The Town will establish internal deadlines to submit the report at least 30 days before the federal due date. The responsibili...

Condition: The Town did not submit its single audit reporting package or data collection form within the required timeline. Corrective Action Plan Corrective Action Planned: The Town will establish internal deadlines to submit the report at least 30 days before the federal due date. The responsibility to track audit milestones and communicate progress to management weekly will be assigned to the Grant Accountant, and the Town will schedule earlier engagement with the external auditor and ensure all required documentation is accurately prepared. The Town’s delay in submitting the Single Audit was due in part by the timing of the prior-year audit, which was not received until late and compressed the timeline for beginning and completing the subsequent audit. This occurred during a period of significant turnover within the Finance Department, including the loss of institutional knowledge related to grant reporting, audit preparation, and year-end closing procedures. The department has since restructured and expanded staffing, strengthened training, and developed additional procedures, workbooks, and guides to improve continuity and reduce reliance on individual staff knowledge. The Town has also improved its grant tracking and audit preparation processes, including standardized project account structures, enhanced reconciliation workbooks, and earlier preparation of the SEFA and supporting documentation. Finance is in the process of FY 2025-26 closing process earlier so that reconciliations, year-end adjustments, grant documentation, and audit schedules can be completed well in advance of fieldwork and prevent prior-year audit delays from continuing into future audit cycles. Name(s) of Contact Person(s) Responsible for Corrective Action: Aimee Beleu, Finance Director Anticipated Completion Date: The corrective action will be implemented to take effect for the audit of the FY 2025-26 financial statements.

View Audit 410131

Finding 1228467 (2025-001)

Material Weakness 2025

Kpc Apartments, Phase II

MS

HUD Housing Programs Cash Management Significant Deficiency

CORRECTIVE ACTION PLAN NOVEMBER 30, 2025 U. S. Department of Housing and Urban Development K.P.C. Apartments, Phase II (the "Project") respectfully submits the following corrective action plan for the year ended November 30, 2025. Audit Firm: Harper, Rains, Knight & Company, P.A. 1052 Highland Colon...

CORRECTIVE ACTION PLAN NOVEMBER 30, 2025 U. S. Department of Housing and Urban Development K.P.C. Apartments, Phase II (the "Project") respectfully submits the following corrective action plan for the year ended November 30, 2025. Audit Firm: Harper, Rains, Knight & Company, P.A. 1052 Highland Colony Parkway, Suite 100 Ridgeland, MS 39157 Audit Period: Year Ended November 30, 2025 Audit Finding Reference: 2025-001 Planned Corrective Action Management will submit a request to HUD for authorization of the distribution of the residual receipt funds. Name of Contact Person: If the U. S. Department of Housing and Urban Development for audit has questions regarding this plan, please call Rick Greene at 601-714-8349. Sincerely, K.P.C. Apartments, Phase II By Inventive Property Management Company

View Audit 410130

Finding 1228466 (2025-002)

Material Weakness 2025

OLYMPIC COMMUNITY OF HEALTH

WA

Subrecipient Monitoring § 200.332

Corrective action planned: All required funding source information will be included in partner contracts moving forward. Corrective action plan is 2 fold: 1. OCH will email all 2026 subawardees the required funding source information and save this documentation within the appropriate contract folder...

Corrective action planned: All required funding source information will be included in partner contracts moving forward. Corrective action plan is 2 fold: 1. OCH will email all 2026 subawardees the required funding source information and save this documentation within the appropriate contract folder. 2. OCH will update it’s contract templates to include funding source information and all future contracts will include this within the contract. Anticipated completion date: By August 31, OCH will communicate funding source information with current 2026 subawardees. By September 1, OCH will update contract templates to include funding source information and all future contracts will have this information included in the contract. Contact person responsible for corrective action: Miranda Burger

View Audit 410125

Finding 1228465 (2025-003)

Material Weakness 2025

Ministerio Buen Samaritano, Marc Marcos A. Rivera Córdova, INC

PR

School Nutrition Programs Equipment & Real Property Management

Responsible Official: Marcos A. Rivera Sánchez, Executive Director Management acknowledges the condition identified in the audit: the perpetual inventory system calculates inventory costs using the weighted average method, while the entity's established methodology for valuing USDA Foods is FIFO. Be...

Responsible Official: Marcos A. Rivera Sánchez, Executive Director Management acknowledges the condition identified in the audit: the perpetual inventory system calculates inventory costs using the weighted average method, while the entity's established methodology for valuing USDA Foods is FIFO. Because the system does not support FIFO, inventory costs must be recalculated manually at year end, resulting in significant adjustments and indicating that perpetual inventory records maintained during the year do not reconcile to USDA-assigned costs. To address this issue, management will implement the following corrective actions consistent with the audit recommendation: - Evaluate and configure the inventory system to apply the FIFO costing method or adopt a system capable of reflecting USDA-assigned costs. - Develop and implement formal written procedures requiring periodic reconciliation between the perpetual inventory, accounting records, and USDA costs assignments. - Document and investigate any differences identified during reconciliations to ensure accurate, complete, and compliant inventory records in accordance with 7 CFR 250.19. These actions are intended to eliminate the need for significant manual adjustments at year end, strenghten inventory valuation controls, and ensure compliance with USDA requirements. Anticipated Completion Date: December 31, 2026.

View Audit 410118

Finding 1228463 (2025-001)

Material Weakness 2025

New St Paul C.o.g.i.c Head Start Agency, Inc.

MI

Reporting Subrecipient Monitoring Significant Deficiency

Effective immediately, New St. Paul Head Start Agency, Inc. will use the agency’s internal calendar system to provide the Fiscal Director with advance notification of all SF-425 report due dates.

View Audit 410117

Corrective Action Plans

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