Corrective Action Plans

Finding 1228419 (2025-005)

Material Weakness 2025

Glide Foundation

CA

Reporting Cash Management Internal Control / Segregation of Duties

Views of Responsible Officials and Planned Corrective Action: Management acknowledges that, for certain reimbursement requests, documentation evidencing review and approval prior to submission was not retained. Management notes, however, that the underlying expenditures included in the reimbursement...

Views of Responsible Officials and Planned Corrective Action: Management acknowledges that, for certain reimbursement requests, documentation evidencing review and approval prior to submission was not retained. Management notes, however, that the underlying expenditures included in the reimbursement requests were valid, properly recorded in the general ledger, and supported by appropriate accounting records. No questioned costs were identified, and the amounts requested for reimbursement were consistent with allowable program expenditures. Management believes the condition was limited to documentation of review rather than the absence of an actual review process. Reimbursement requests were prepared using underlying financial records and submitted based on incurred costs; however, evidence of supervisory review was not consistently retained during a period of staffing transition. Upon identification, management evaluated its cash management and drawdown processes and reinforced expectations related to documentation and retention of review and approval. Review and approval of reimbursement requests are now consistently evidenced through electronic or physical sign off, and supporting documentation is maintained in a centralized and accessible manner. In addition, management has reinforced alignment of drawdown activity with underlying accounting records to ensure consistency between reimbursement requests, financial reporting, and the general ledger. Management believes this condition represents a documentation gap during a defined period rather than a systemic breakdown in internal control over compliance. The underlying control activities—preparation of drawdowns based on recorded expenditures and supervisory oversight—were in place and functioning, and the enhancements implemented ensure consistent documentation and retention of those controls going forward. Management will continue to monitor these processes as part of ongoing financial operations to ensure compliance with applicable requirements, including 2 CFR Part 200. Management respectfully notes that this condition was limited to the retention of documentation evidencing review and approval and did not impact the allowability of costs, the accuracy of reimbursement requests, or compliance with program requirements. All expenditures were properly supported and recorded, and no questioned costs were identified.

View Audit 410100

Finding 1228418 (2025-003)

Material Weakness 2025

Glide Foundation

CA

Subrecipient Monitoring Reporting

Views of Responsible Officials and Planned Corrective Action: Management acknowledges that certain required financial and narrative reports were not submitted within the prescribed timelines and that documentation supporting the preparation and review of one cumulative report was not retained. Manag...

Views of Responsible Officials and Planned Corrective Action: Management acknowledges that certain required financial and narrative reports were not submitted within the prescribed timelines and that documentation supporting the preparation and review of one cumulative report was not retained. Management notes, however, that all required reports were ultimately completed and submitted, and no questioned costs were identified. Management believes the condition reflects a lapse in consistent execution and documentation of existing reporting processes during a period of staffing transition, rather than a fundamental breakdown in the underlying control environment. The underlying financial data supporting the reports was complete and accurate, and the delays did not impact the allowability of expenditures or program compliance. Upon identification, management conducted a review of reporting processes and reinforced controls to ensure greater consistency, timeliness, and documentation. Reporting requirements and due dates are maintained in a centralized tracking system accessible to Program, Finance, and Compliance staff, and cross-functional coordination occurs regularly to monitor progress and upcoming deadlines. Management has strengthened oversight by clarifying ownership of reporting deliverables, reinforcing expectations for timely submission, and requiring documented evidence of preparation and review prior to submission. Additional emphasis has been placed on timely escalation of potential delays and maintaining complete documentation to support all reporting activities. Management believes these enhancements address the execution and documentation gaps identified and significantly reduce the likelihood of recurrence. These processes have been incorporated into ongoing operations and will continue to be monitored to ensure compliance with grant requirements and applicable regulations, including 2 CFR Part 200.

View Audit 410100

Finding 1228416 (2025-004)

Material Weakness 2025

Glide Foundation

CA

Cash Management Reporting Internal Control / Segregation of Duties

Views of Responsible Officials and Planned Corrective Action: Management acknowledges that documentation supporting the review and approval of a reimbursement request was not retained, and that drawdown activity during the period did not consistently align with the timing of incurred expenditures. M...

Views of Responsible Officials and Planned Corrective Action: Management acknowledges that documentation supporting the review and approval of a reimbursement request was not retained, and that drawdown activity during the period did not consistently align with the timing of incurred expenditures. Management notes that this condition was identified during a period of staffing transition and resulted in a lapse in documentation and timeliness, rather than an absence of underlying financial controls. Management further notes that the expenditure underlying the reimbursement request were valid, properly recorded in the general ledger, and supported by appropriate accounting records. The condition was limited to documentation of review and the timing of drawdown activity, and no questioned costs were identified. Upon identification, management evaluated and reinforced its cash management and drawdown processes. Drawdown requests are now consistently prepared based on underlying accounting records and aligned with incurred expenditures. A formal review and approval step has been implemented and is now required prior to submission, with evidence of review retained electronically or physically for audit purposes. In addition, management has strengthened oversight of drawdown timing to better align reimbursements with the period in which costs are incurred, reducing the risk of delayed submissions and ensuring consistency with related financial reporting. Management believes this condition represents a lapse in execution and documentation during a defined period rather than a systemic breakdown in control design. Enhancements implemented have addressed the identified gaps and established a more consistent and well documented process for drawdown preparation, review, and submission in accordance with applicable requirements, including 2 CFR Part 200.

View Audit 410100

Finding 1228414 (2025-002)

Material Weakness 2025

Glide Foundation

CA

Reporting § 200.302 § 200.303 § 200.328

Views of Responsible Officials and Planned Corrective Action: Management acknowledges that the Federal Financial Report (FFR) was not submitted within the required 90-day timeframe, resulting in noncompliance with the reporting requirements of the grant agreement. While the organization maintained a...

Views of Responsible Officials and Planned Corrective Action: Management acknowledges that the Federal Financial Report (FFR) was not submitted within the required 90-day timeframe, resulting in noncompliance with the reporting requirements of the grant agreement. While the organization maintained a centralized system for tracking reporting deadlines and conducted regular cross-functional coordination between Program, Finance, and Compliance teams, management recognizes that controls over monitoring and escalation were not sufficiently rigorous to ensure timely submission in all instances. This occurred during a period of elevated staffing transition, which contributed to a lapse in the consistent execution and monitoring of reporting timelines; however, management recognizes that controls should be sufficiently robust to operate effectively regardless of personnel changes. Upon identification of the delay, management evaluated the underlying processes and determined that enhancements were needed to strengthen accountability, improve visibility of critical deadlines, and ensure timely followthrough. Management notes that this condition was limited to the timeliness of submission and did not impact the accuracy of the report or result in questioned costs. Management has since reinforced its reporting oversight by enhancing coordination across responsible teams, clarifying ownership of deliverables, and strengthening internal monitoring practices. This includes implementing more structured tracking of key reporting deadlines, reinforcing expectations around advance preparation and review, and increasing senior-level oversight to ensure that upcoming deadlines are proactively managed and met. In addition, management has emphasized timely escalation of potential delays to ensure corrective action can be taken prior to due dates. Management believes these enhancements address the control gaps identified and significant reduce the likelihood of recurrence. Reporting timelines are now more actively monitored as part of ongoing financial and compliance operations, and management will continue to assess the effectiveness of these processes to ensure adherence to grant requirements and compliance with applicable regulations, including 2 CFR Part 200.

View Audit 410100

Finding 1228413 (2025-001)

Material Weakness 2025

Glide Foundation

CA

Procurement, Suspension & Debarment § 200.318 § 200.326

Views of Responsible Officials and Planned Corrective Action: Management confirms that the procurement activities themselves were completed only after the appropriate review and approval processes had occurred; however, sufficient supporting documentation evidencing those procedures could not be loc...

Views of Responsible Officials and Planned Corrective Action: Management confirms that the procurement activities themselves were completed only after the appropriate review and approval processes had occurred; however, sufficient supporting documentation evidencing those procedures could not be located during the audit process. This condition occurred during a period of significant staffing transition and turnover, which contributed to inconsistencies in documentation retention and adherence to established federal procurement documentation requirements. Management recognizes that internal controls and compliance procedures must remain effective regardless of personnel changes and accepts responsibility for strengthening these controls to ensure consistent compliance. Upon identification of this issue, management conducted an assessment of the underlying procurement and documentation processes and determined that enhancements were necessary to improve accountability, standardize documentation practices, strengthen supervisory review, and reinforce staff training related to federal procurement requirements. Management emphasizes that the deficiency related to the retention and completeness of procurement documentation, rather than to the execution of the procurement process itself. Management believes the evaluation, selection, and approval activities were conducted in accordance with applicable federal procurement guidelines and standards. Management is currently reviewing procurement policies and procedures to ensure alignment with federal requirements related to quotations, vendor evaluation and selection, approval protocols, and document retention. Additional corrective actions include reinforcing documentation standards, clarifying approval responsibilities, and implementing enhanced monitoring procedures to help prevent recurrence.

View Audit 410100

Finding 1228412 (2025-002)

Material Weakness 2025

County of Montgomery

PA

Subrecipient Monitoring Reporting

Finding 2025-002 – Subrecipient Monitoring Federal Agency: Department of Treasury Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds – ALN #21.027 Condition: As part of its subrecipient monitoring process, the County obtained and reviewed the subrecipient’s audit report, which ide...

Finding 2025-002 – Subrecipient Monitoring Federal Agency: Department of Treasury Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds – ALN #21.027 Condition: As part of its subrecipient monitoring process, the County obtained and reviewed the subrecipient’s audit report, which identified findings related to federal program expenditures. Although the County ultimately communicated with the subrecipient regarding the findings, requested a corrective action plan, and performed and documented follow-up procedures, these actions were not completed timely. The follow-up procedures ultimately performed did not identify any additional issues or unresolved matters. Criteria: Internal controls over subrecipient monitoring should ensure that audit findings are communicated, corrective action is requested, and follow-up procedures are completed and documented within an established timeframe. The control should also provide a means to track the status of these activities through resolution. Cause: The County did not have an effective process to track the timing of subrecipient monitoring follow-up activities and ensure that communication, corrective action requests, and related documentation were completed timely. Effect: The delay in completing and documenting follow-up reduced the timeliness and transparency of the County’s monitoring process and could have delayed corrective action by the subrecipient. The follow-up procedures ultimately performed did not identify any additional issues or unresolved matters. Repeat Finding: Yes. This finding is a continuation of Finding 2024-002. The County obtained and reviewed the required subrecipient audit reports during 2025; however, it did not timely follow up on audit findings. Recommendation: The County should establish a documented tracking process for subrecipient audit findings that identifies responsible personnel, required actions, target completion dates, and current status. The County should also require timely communication with subrecipients, requests for corrective action plans, completion of follow-up procedures, and retention of supporting documentation. Periodic supervisory review should be performed to confirm that follow-up activities are completed and documented within the established timeframe. Management’s Response: The County accepts the finding and is implementing corrective actions to address the issue and strengthen its subrecipient monitoring procedures. The Office of Innovation, Strategy and Performance is implementing a documented tracking process for subrecipient audit findings. The process will identify responsible personnel, required corrective actions, target completion dates, and the status of each item. To provide ongoing oversight, the Controller’s Office will perform quarterly reviews of this process to verify that all required monitoring activities have been completed and appropriately documented within established timeframes. The Controller’s Office, in collaboration with the Office of Innovation, Strategy and Performance, conducted a comprehensive review of all ARPA subrecipient audits submitted to the Federal Audit Clearinghouse (FAC) since the inception of the ARPA program (2021 to present). The Office of Innovation, Strategy and Performance is compiling all monitoring records, correspondence, and follow-up activities conducted to date for subrecipients with audit findings related to Assistance Listing Number (ALN) 21.027. Additional follow-up will be performed, as necessary, to verify that corrective actions have been implemented and that identified issues have been fully resolved. To strengthen ongoing monitoring efforts, the County has developed a tracking schedule that identifies each subrecipient’s fiscal year-end date. Using this schedule, the Office of Innovation, Strategy and Performance will perform quarterly reviews to monitor audit submission requirements and follow up with any subrecipient that has not submitted its audit to the FAC within the required nine-month period following its fiscal year-end. The County will incorporate a reporting question into the third-quarter 2026 Subrecipient Report requiring subrecipients to indicate whether they were subject to the Single Audit requirement in their most recent fiscal year and if so, if the audit was submitted to the FAC. The corrective actions described above will help ensure that the County’s ARPA subrecipient monitoring process is comprehensive, well documented, and performed in a timely manner. The Controller’s Office will continue to work closely with the Office of Innovation, Strategy and Performance throughout the remainder of the ARPA program to ensure the County fulfills its subrecipient monitoring responsibilities. Responsible Person(s): Fonta Reilly, Valerie Vellon Anticipated Completion Date: December 31, 2026

View Audit 410094

Finding 1228402 (2025-002)

Material Weakness 2025

Morgan County

OH

Subrecipient Monitoring Reporting Material Weakness § 200.202 § 200.208 § 200.301 § 200.328

The Morgan County Economic Development Office acknowledges the status and final reports for the CDBG and Home grant programs must be submitted by the required due dates. The office will actively monitor all deadlines and ensure that all reports are completed and submitted in a timely manner in accor...

The Morgan County Economic Development Office acknowledges the status and final reports for the CDBG and Home grant programs must be submitted by the required due dates. The office will actively monitor all deadlines and ensure that all reports are completed and submitted in a timely manner in accordance with those requirements.

View Audit 410083

Finding 1228389 (2025-001)

Material Weakness 2025

Talbert House Health Center Dba Centerpoint Health

OH

Special Tests & Provisions Internal Control / Segregation of Duties

Finding 2025-001 — Special Tests and Provisions – Sliding Fee Discount Program Federal Program: Health Center Program Cluster, ALN 93.224 Federal Agency: U.S. Department of Health and Human Services (Health Resources and Services Administration) Condition (as reported): The Organization’s Board-appr...

Finding 2025-001 — Special Tests and Provisions – Sliding Fee Discount Program Federal Program: Health Center Program Cluster, ALN 93.224 Federal Agency: U.S. Department of Health and Human Services (Health Resources and Services Administration) Condition (as reported): The Organization’s Board-approved sliding fee discount schedule was not configured correctly within the eClinicalWorks (eCW) billing system, resulting in patient sliding fee discounts that were not calculated in accordance with the Organization’s approved schedule. Name of Contact Person Responsible for Corrective Action: Hope Beemer, Chief Financial Officer 513.318.1188 | hope.beemer@centerpointhealth.org Corrective Action Taken: The Organization has corrected the condition identified in the finding. Specifically: • In 2025, Centerpoint Health utilized an outside vendor for billing services. To strengthen internal oversight and accountability, billing was brought in-house in January 2026 with the hiring of a Director of Revenue Cycle Management. By April 2026, all billing and revenue cycle operations were fully transitioned to Centerpoint Health’s internal team. • The Board of Directors reviewed and approved an updated sliding fee discount schedule in May 2026, which was implemented in the eClinicalWorks (eCW) billing system with an effective date of February 1, 2026. • Prior to implementation, management verified that the approved schedule was accurately configured in eCW by comparing system-generated discounts to the Board-approved schedule across each discount tier. • Patient encounters affected during 2025 were reviewed and discounts are adjusted where necessary. This was completed by August 2026. Ongoing Controls to Prevent Recurrence: • Any change to the sliding fee discount schedule in eCW requires a secondary, independent review and approval before the change is activated. • Management performs a quarterly reconciliation of system-generated sliding fee discounts to the current Board-approved schedule and investigates and resolves any exceptions. • The sliding fee discount schedule is reviewed and approved by the Board of Directors at least annually and is updated for changes in the Federal Poverty Guidelines. • Billing and front-desk staff receive annual training on the sliding fee discount policy and schedule. Anticipated Completion Date: • Completed. The updated Board-approved sliding fee discount schedule was implemented effective February 1, 2026, and the ongoing monitoring controls described above are in effect.

View Audit 410075

Finding 1228388 (2025-002)

Material Weakness 2025

DRAPER IRRIGATION CO

UT

Procurement, Suspension & Debarment

Management is working to formally document their procurement policies and conflict of interest policies in regards to federal expenditures.

View Audit 410058

Finding 1228387 (2025-003)

Material Weakness 2025

Housing Authority of Floyd County

KY

HUD Housing Programs Special Tests & Provisions § 200.516

The Authority will strengthen its annual payment standard review procedures to ensure payment standards are supported by current FMRs and any required HUD approval or notification is obtained and retained before implementation. HUD approval of 120% payment standards has been obtained for the 2026 pr...

The Authority will strengthen its annual payment standard review procedures to ensure payment standards are supported by current FMRs and any required HUD approval or notification is obtained and retained before implementation. HUD approval of 120% payment standards has been obtained for the 2026 program year. Anticipated completion date: December 31, 2026. Responsible contact person: Ola Stepp, Executive Director.

View Audit 410057

Finding 1228386 (2025-002)

Material Weakness 2025

Housing Authority of Floyd County

KY

HUD Housing Programs Special Tests & Provisions § 200.516

The Authority will strengthen its Housing Choice Voucher file review procedures to ensure executed leases, rent reasonableness determinations, gross income calculations, and utility allowances are properly documented and reviewed. Anticipated completion date: December 31, 2026. Responsible contact p...

The Authority will strengthen its Housing Choice Voucher file review procedures to ensure executed leases, rent reasonableness determinations, gross income calculations, and utility allowances are properly documented and reviewed. Anticipated completion date: December 31, 2026. Responsible contact person: Ola Stepp, Executive Director.

View Audit 410057

Finding 1228385 (2025-015)

Material Weakness 2025

Boys and Girls Clubs of Puerto Rico INC

PR

Subrecipient Monitoring Procurement, Suspension & Debarment Allowable Costs / Cost Principles § 200.318 § 200.334 § 200.403

In order to avoid this situation happening in the future, instruction will be provided to all personnel emphasizing that every purchase should be made through a purchase order. This will ensure that we follow the BGCPR formal procedure and ensure better internal control is being followed. In additio...

In order to avoid this situation happening in the future, instruction will be provided to all personnel emphasizing that every purchase should be made through a purchase order. This will ensure that we follow the BGCPR formal procedure and ensure better internal control is being followed. In addition, we will emphasize that no shipment should be received if such purchase is not in accordance with the specification disclosed in the purchase order. Contact Person: Purchase and procurement personnel Carlos Rivera Paul Barreras Amarilis Rodríguez (PACNA’s Project Manager) Team: Finance Team Anticipated Completion Date: September 30, 2026

View Audit 410044

Finding 1228384 (2025-014)

Material Weakness 2025

Boys and Girls Clubs of Puerto Rico INC

PR

Procurement, Suspension & Debarment § 200.214 § 200.318 § 200.319 § 200.320 § 200.327

BGCPR agrees with the deficiency identified, mostly attributable to employee turnover within the Finance Division. As a result of this, during fiscal year 2026-2027 BGCPR will implement procedures to ensure proper procurement process including the following: a. Review the procurement check list to e...

BGCPR agrees with the deficiency identified, mostly attributable to employee turnover within the Finance Division. As a result of this, during fiscal year 2026-2027 BGCPR will implement procedures to ensure proper procurement process including the following: a. Review the procurement check list to ensure that all required documentation is included within and ensure revision before a purchase order is issued to the vendor. b. Training to the personnel to guarantee that policy and procedures are implemented as required. c. Enforce standardized procedures to ensure that all approvals are consistently documented and maintained in accordance with policy or grant requirements. Contact Person: Purchase and procurement personnel Carlos Rivera Team: Finance Team Anticipated Completion Date: September 30, 2026

View Audit 410044

Finding 1228380 (2025-013)

Material Weakness 2025

Boys and Girls Clubs of Puerto Rico INC

PR

Procurement, Suspension & Debarment § 200.214

We acknowledge that internal control should be strengthened by reviewing the current BGCPR Fiscal Policy, and effective September 30, 2026, all vendors must be verified who are not excluded or disqualified at System for Award Management (SAM.gov). This verification will be incorporated into the Work...

We acknowledge that internal control should be strengthened by reviewing the current BGCPR Fiscal Policy, and effective September 30, 2026, all vendors must be verified who are not excluded or disqualified at System for Award Management (SAM.gov). This verification will be incorporated into the Workflow system and maintained as part of the vendor approval process. Contact Person: Purchase and procurement personnel Carlos Rivera Team: Finance Team Anticipated Completion Date: September 30, 2026

View Audit 410044

Finding 1228375 (2025-012)

Material Weakness 2025

Boys and Girls Clubs of Puerto Rico INC

PR

Subrecipient Monitoring Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.303 § 200.334 § 200.403 § 200.430

BGCPR will provide additional training and guidance to Human Resources personnel to ensure consistent adherence to the internal procedures established. Contact Person: Yezaida Reyes Angel Morales Paul Rivera Team: Finance, Compliance and Human Resources Team Anticipated Completion Date: September 30...

BGCPR will provide additional training and guidance to Human Resources personnel to ensure consistent adherence to the internal procedures established. Contact Person: Yezaida Reyes Angel Morales Paul Rivera Team: Finance, Compliance and Human Resources Team Anticipated Completion Date: September 30, 2026

View Audit 410044

Finding 1228373 (2025-011)

Material Weakness 2025

Boys and Girls Clubs of Puerto Rico INC

PR

Allowable Costs / Cost Principles Subrecipient Monitoring § 200.303 § 200.334 § 200.403 § 200.430

BGCPR will provide additional training and guidance to Human Resources personnel to ensure consistent adherence to the internal procedures established. Contact Person: Yezaida Reyes Angel Morales Paul Rivera Team: Finance, Compliance and Human Resources Team Anticipated Completion Date: September 30...

BGCPR will provide additional training and guidance to Human Resources personnel to ensure consistent adherence to the internal procedures established. Contact Person: Yezaida Reyes Angel Morales Paul Rivera Team: Finance, Compliance and Human Resources Team Anticipated Completion Date: September 30, 2026

View Audit 410044

Finding 1228371 (2025-010)

Material Weakness 2025

Boys and Girls Clubs of Puerto Rico INC

PR

Subrecipient Monitoring Reporting Significant Deficiency § 200.328 § 200.329

Due to the organization’s transition period, the reports were submitted late. After the new Finance Director started in June 25, 2025. In January 30, 2026, we received system access, all reports were submitted on February 4, 2026. This matter was presented in the most recent focus Area II monitoring...

Due to the organization’s transition period, the reports were submitted late. After the new Finance Director started in June 25, 2025. In January 30, 2026, we received system access, all reports were submitted on February 4, 2026. This matter was presented in the most recent focus Area II monitoring by the Agency, with no complaints noted. We will request additional system access for reporting purposes in case the person responsible is unavailable. Contact Person: Carlos Rivera Nora Boschetti Team: Finance Team Anticipated Completion Date: September 30, 2026

View Audit 410044

Finding 1228367 (2025-009)

Material Weakness 2025

Boys and Girls Clubs of Puerto Rico INC

PR

Subrecipient Monitoring § 200.328

We recognize that due to the volume of report and transaction, these two reports were not issued as required. Steps have been taken to avoid this situation happening in the future, which includes preparing schedule reports, establishing datelines and hiring additional finance personnel to work with ...

We recognize that due to the volume of report and transaction, these two reports were not issued as required. Steps have been taken to avoid this situation happening in the future, which includes preparing schedule reports, establishing datelines and hiring additional finance personnel to work with the required reports. Contact Person: Paul Barrera Roxana Rivera Team: Finance Team Anticipated Completion Date: September 30, 2026

View Audit 410044

Finding 1228365 (2025-008)

Material Weakness 2025

Boys and Girls Clubs of Puerto Rico INC

PR

Procurement, Suspension & Debarment Equipment & Real Property Management Internal Control / Segregation of Duties

BGCPR acknowledges a significant oversight in the financial management of assets acquired with Community Development Block Grant – Disaster Recovery (CDBG-DR) funds. Specifically, it has been identified that certain property and equipment purchased using these funds were not properly recorded in the...

BGCPR acknowledges a significant oversight in the financial management of assets acquired with Community Development Block Grant – Disaster Recovery (CDBG-DR) funds. Specifically, it has been identified that certain property and equipment purchased using these funds were not properly recorded in the equipment detail ledger. As a result of this omission, these assets were incorrectly treated as expenses in the financial records, rather than being capitalized in accordance with BGCPR’s established financial policies and the federal guidelines governing the administration of CDBG-DR funds. This misclassification not only affects the accuracy of BGCPR’s financial statements but also represents a deviation from required asset management practices, which mandate the capitalization and tracking of equipment to ensure accountability, proper depreciation, and compliance with grant conditions. As a corrective measure, BGCPR will take the following actions: a. BGCPR will implement a corrective action plan to strengthen accounting processes related to account registration and equipment capitalization related to the CDBG-DR; b. Procurement procedures for requesting, approving, and accepting goods and services, Include agency consultation; c. Ensure accuracy in financial records that Maintain compliance with applicable regulations; d. Account for taxes and support service costs (e.g., installation, delivery); e. Ensure all purchases align with federal regulations. Contact Person: Paul Barrera Carlos Rivera Enrique Vélez Cortes Team: Finance Team Anticipated Completion Date: December 31, 2026

View Audit 410044

Finding 1228362 (2025-007)

Material Weakness 2025

Boys and Girls Clubs of Puerto Rico INC

PR

Allowable Costs / Cost Principles Reporting Significant Deficiency § 200.512

BGCPR acknowledges that the delay in the preparation and submission of its audited financial statements was influenced by several interrelated factors, primarily stemming from the challenges associated with a transitional period and the unexpected resignation of the Chief Financial Officer (CFO). Th...

BGCPR acknowledges that the delay in the preparation and submission of its audited financial statements was influenced by several interrelated factors, primarily stemming from the challenges associated with a transitional period and the unexpected resignation of the Chief Financial Officer (CFO). The absence of a key financial executive during this period significantly impacted on BGCPR’s ability to compile, review, and finalize the required financial documentation in accordance with established timelines. As a result, BGCPR was unable to meet the statutory deadlines for submitting the audited financial statements, including the data collection form and the complete reporting package, thereby resulting in non-compliance with applicable legal and regulatory reporting requirements. Recognizing the importance of timely and accurate financial reporting, BGCPR is committed to implementing corrective measures. These include the development and enforcement of a structured reporting calendar, the allocation of dedicated resources to support audit preparation, and the establishment of internal checkpoints to monitor progress. These actions are intended to ensure that future submissions are completed within the required deadlines, thereby restoring compliance and reinforcing BGCPR’s commitment to transparency and accountability. As a corrective measure, BGCPR will take the following actions: a. Developing and enforcing a structured reporting calendar; b. Allocating dedicated resources to support audit preparation; c. Establishing internal checkpoints to monitor progress and ensure accountability; d. Ensure future submissions meet the required deadlines. Contact Person: Paul Barrera Carlos Rivera Antonio Rosario Team: Finance Team Anticipated Completion Date: December 31, 2026

View Audit 410044

Finding 1228355 (2025-006)

Material Weakness 2025

Boys and Girls Clubs of Puerto Rico INC

PR

Equipment & Real Property Management Subrecipient Monitoring § 200.1 § 200.313

BGCPR recognizes that it must keep and improve the asset capitalization processes and policies, particularly within the accounting system of record. It acknowledges the need to strengthen these processes to ensure accurate and compliant management of equipment acquisitions. To address this, during f...

BGCPR recognizes that it must keep and improve the asset capitalization processes and policies, particularly within the accounting system of record. It acknowledges the need to strengthen these processes to ensure accurate and compliant management of equipment acquisitions. To address this, during fiscal year 2025-26, BGCPR implemented a system capable of recording, classifying, and monitoring all capital assets in alignment with the criteria established under federal regulation 2 CFR §200. This improvement is essential to ensure that all asset capitalization activities meet regulatory standards and support greater financial transparency and accountability. As a corrective measure, BGCPR will take the following actions: a. A property and inventory coordinator was hired and is responsible for overseeing all aspects of property control and asset management. b. Full Implementation Property software to accurately all property of by BGCPR. The system includes information such as asset identification number, acquisition date, funding source, cost, useful life, depreciation, location, and other relevant details, serving as a support tool for the property records maintained in the accounting system. c. Prepare an updated Property Control Manual, which is pending final approval by senior management. Implement procedures for timely recording of acquisitions, transfers, disposals, and impairments to ensure that asset records remain current and accurate. d. Perfom and complete physical inventory for all Units and Central Office. e. All inventory counts have been entered into the system. f. All property acquired have been recorded in the property software. g. Currently we are in the process of valuation of the physical inventory to reconcile with the accounting records by December 31, 2026. h. Training was provided to personnel involved in asset management and inventory activities to ensure consistent application of established procedures. i. Perform periodic monitoring reviews by finance, compliance, or internal audits to validate adherence to property control policies and inventory requirements. Contact Person: Paul Barrera Carlos Rivera Enrique Vélez Cortes Lexa M. González Brown Team: Finance Team Anticipated Completion Date: December 31, 2026

View Audit 410044

Finding 1228351 (2025-001)

Material Weakness 2025

Whitley County

IN

Procurement, Suspension & Debarment Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303

FINDING 2025-001 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – Suspension and Debarment Contact Person Responsible for Corrective Action: Tiffany Deakins Contact Phone Number: 260-248-3176 wcauditor@whitleygov.com Views of Responsible Official: We concur with the fi...

FINDING 2025-001 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – Suspension and Debarment Contact Person Responsible for Corrective Action: Tiffany Deakins Contact Phone Number: 260-248-3176 wcauditor@whitleygov.com Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: Whitley County will make sure that moving forward we will have all vendors sign a contract or agreement with the “suspension and debarment” verbiage included or will have them sign the “suspension and debarment certification” if they will be receiving $25,000 or more of federal funds. I have followed up with Commissioners and asked that they implement a policy for ALL payments of $25,000 and over require filling out a suspension and disbarment certification form. Anticipated Completion Date: September 30, 2026

View Audit 410043

Finding 1228350 (2025-001)

Material Weakness 2025

Home Start INC

CA

Internal Control / Segregation of Duties Subrecipient Monitoring

Management acknowledges that personnel turnover during the audit period affected segregation of duties and continuity of financial and program oversight. Because the FY2024 audit was completed after the FY2025 fiscal year had ended, management did not have an opportunity to implement the prior-year ...

Management acknowledges that personnel turnover during the audit period affected segregation of duties and continuity of financial and program oversight. Because the FY2024 audit was completed after the FY2025 fiscal year had ended, management did not have an opportunity to implement the prior-year corrective actions in time to affect the FY2025 audit period. FY2025 was the first fiscal year in several years in which both the Chief Financial Officer and Accounting Manager were in place during the fiscal year and audit process, improving continuity, institutional knowledge, and supervisory oversight. Since the audit period, the Organization has further strengthened its leadership structure by elevating the Director of Programs position to Vice President of Programs in September 2025 and the Accounting Manager position to Controller in June 2026. The Organization is also implementing Blackbaud Financial Edge in FY2027. These system improvements, combined with stabilized staffing, will strengthen segregation of duties and reduce reliance on manual compensating controls. Management is committed to maintaining appropriate staffing levels, cross-training team members, and clearly defining backup responsibilities to ensure continuity of financial operations and compliance with internal control standards. Actions Taken • Stabilized key fiscal leadership positions and maintained continuity throughout FY2025 and the audit process. • Strengthened supervisory review, cross-training, and backup coverage for key financial functions. • Elevated the Director of Programs position to Vice President of Programs in September 2025. • Elevated the Accounting Manager position to Controller in June 2026. • Initiated implementation of Blackbaud Financial Edge with enhanced approval workflows, role-based access, and audit trails; planned go-live for October 2026.

View Audit 410036

Finding 1228349 (2025-002)

Material Weakness 2025

Home Start INC

CA

Procurement, Suspension & Debarment § 200.318 § 200.319 § 200.320

Management acknowledges that procurement documentation was not consistently maintained during the audit period. Because the FY2024 audit was completed after the FY2025 fiscal year had ended, management did not have an opportunity to implement the prior-year corrective actions in time to affect the F...

Management acknowledges that procurement documentation was not consistently maintained during the audit period. Because the FY2024 audit was completed after the FY2025 fiscal year had ended, management did not have an opportunity to implement the prior-year corrective actions in time to affect the FY2025 audit period. Since the audit period, the Organization has strengthened procurement and compliance oversight by elevating the Director of Programs position to Vice President of Programs in September 2025, launching the Compliance and Risk Management Committee in FY2026, and creating a Compliance & Evaluation Manager position with an anticipated start date in August 2026. Fiscal and program leadership have substantially revised the procurement policy and are developing related procedures and standardized documentation requirements. The policy and procedures will be reviewed by the Compliance and Risk Management Committee in early FY2027 before being submitted for Board approval. The revised materials address competitive quotations and bids, vendor selection, price reasonableness, noncompetitive procurement justifications, conflict-of-interest requirements, debarment verification, and documentation of the procurement history. The FY2027 budget includes 2 CFR Part 200 training for Fiscal, Programs, and Grants staff. Blackbaud Financial Edge, scheduled to go live in FY2027, will further support approval workflows, transaction tracking, role-based access, and document retention. Management is committed to achieving full compliance with Uniform Guidance procurement requirements. Actions Taken • Elevated the Director of Programs position to Vice President of Programs in September 2025. • Launched the Compliance and Risk Management Committee in FY2026. • Created a Compliance & Evaluation Manager position, with an anticipated start date in August 2026. • Strengthened supervisory review and reinforced procurement documentation expectations. • Substantially revised the procurement policy and began developing standardized procedures and documentation requirements. • Scheduled Compliance and Risk Management Committee review of the revised policy and procedures for the fall of 2026. • Included 2 CFR Part 200 training for Fiscal, Programs, and Grants staff in the FY2027 budget. • Initiated implementation of Blackbaud Financial Edge; planned go-live for October 2026.

View Audit 410036

Finding 1228335 (2025-001)

Material Weakness 2025

Oklahoma Student Loan Authority

OK

Special Tests & Provisions Material Weakness Reporting

Finding 2025-001: Material Weakness in Internal Control Over Compliance and Scope Limitation Over Special Tests and Provisions (Special Tests and Provisions) Condition: The Authority was unable to provide sufficient documentation and system data necessary for us to perform required audit procedures ...

Finding 2025-001: Material Weakness in Internal Control Over Compliance and Scope Limitation Over Special Tests and Provisions (Special Tests and Provisions) Condition: The Authority was unable to provide sufficient documentation and system data necessary for us to perform required audit procedures over certain Special Tests and Provisions applicable to the Federal Family Education Loans (Lenders) Program, ALN 84.032L. Specifically, support was not available for seven of the ten Special Tests and Provisions selected or required for testing. Because the required documentation and system data were not available, we were unable to obtain sufficient appropriate audit evidence to determine whether the Authority complied with the Special Tests and Provisions compliance requirement for the FFEL Program for the year ended June 30, 2025, The Reporting compliance requirement was tested without exception. In conjunction with our FY2025 program audit, please see the Authority's corrective action plan below: Management acknowledges that sufficient documentation was not available to support all audit requirements and agrees with the recommendation. The circumstances described in this finding resulted from the transition of FFEL Program loan servicing to Higher Education Servicing Corporation (HESC) and the subsequent sale of the FFEL loan portfolio to Kentucky Higher Education Student Loan Corporation (KHESLC). Although OSLA transferred borrower-level history and transaction data to the new servicing system, access to the legacy system was discontinued, eliminating access to certain detailed records needed to support portions of the compliance testing. Because the Authority no longer owns or services the FFEL portfolio, the specific circumstances that led to this finding are not expected to recur. Nonetheless, management has implemented enhanced records management controls to help ensure the retention and accessibility of supporting documentation and to mitigate similar risks in the future. Expected completion date: March 31, 2026

View Audit 410031

Corrective Action Plans

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