Corrective Action Plans

Finding 1215199 (2025-008)

Material Weakness 2025

City Of Wakefield

MI

Reporting Internal Control / Segregation of Duties § 200.512

The City acknowledges the finding. The delayed completion of the audit process contributed to the untimely submission of the reporting package and Data Collection Form. Federal reporting deadlines have been incorporated into the City’s annual compliance calendar, and management will continue coordin...

The City acknowledges the finding. The delayed completion of the audit process contributed to the untimely submission of the reporting package and Data Collection Form. Federal reporting deadlines have been incorporated into the City’s annual compliance calendar, and management will continue coordinating earlier completion of audit deliverables and required submissions. Future submissions will be monitored to ensure compliance with the Uniform Guidance deadline requirements.

View Audit 401866

Finding 1215198 (2025-007)

Material Weakness 2025

City Of Wakefield

MI

Material Weakness Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303

The City acknowledges the finding. The City will continue developing and maintaining written policies and procedures appropriate to its federal award activity and the terms and conditions of applicable federal awards. Policies and procedures will address internal controls, reporting responsibilities...

The City acknowledges the finding. The City will continue developing and maintaining written policies and procedures appropriate to its federal award activity and the terms and conditions of applicable federal awards. Policies and procedures will address internal controls, reporting responsibilities, record retention, allowable costs, procurement standards, conflictof- interest requirements where applicable, and compliance monitoring procedures consistent with Uniform Guidance requirements.

View Audit 401866

Finding 1215197 (2025-006)

Material Weakness 2025

City Of Wakefield

MI

Reporting § 200.302 § 200.510

The City acknowledges the finding. The City will continue strengthening procedures to identify, track, reconcile, and report federal award activity throughout the fiscal year. Procedures will include maintaining documentation sufficient to identify the federal agency/ program, Assistance Listing num...

The City acknowledges the finding. The City will continue strengthening procedures to identify, track, reconcile, and report federal award activity throughout the fiscal year. Procedures will include maintaining documentation sufficient to identify the federal agency/ program, Assistance Listing number, award identifiers, expenditures, loan balances where applicable, subrecipient information, and required SEFA disclosures and notes. Management will also maintain centralized tracking records for federal award activity to support timely preparation of future SEFAs.

View Audit 401866

Finding 1215173 (2025-001)

Material Weakness 2025

The Geological Society of America

CO

Questioned Costs Allowable Costs / Cost Principles Reporting

Finding: 2025-001 - Late Submission of Reporting Package to the Federal Audit Clearinghouse Compliance Requirement: Reporting – 2 CFR 200.512(a) Condition: The reporting package for the year ended June 30, 2025 was not submitted to the Federal Audit Clearinghouse by the required deadline of March 31...

Finding: 2025-001 - Late Submission of Reporting Package to the Federal Audit Clearinghouse Compliance Requirement: Reporting – 2 CFR 200.512(a) Condition: The reporting package for the year ended June 30, 2025 was not submitted to the Federal Audit Clearinghouse by the required deadline of March 31, 2026. Views of Responsible Officials: Management acknowledges that the reporting package was not submitted within the required timeframe and recognizes the importance of timely compliance with federal reporting requirements. Corrective Action Plan • Implementation of Formal Audit Timeline: Management will establish a formal annual audit timeline that includes key milestones for audit preparation, fieldwork, report issuance, and submission to the Federal Audit Clearinghouse. • Assignment of Responsibility: A specific individual will be designated as responsible for monitoring the audit timeline and ensuring timely submission. • Enhanced Coordination with External Auditors: Management will engage with the external auditors earlier in the fiscal year and hold regular status meetings to avoid delays. • Internal Preparedness Improvements: The organization will implement a prepared-by-client (PBC) checklist with internal deadlines. • Pre-Submission Review Process: Management will implement a final review step to confirm readiness for submission immediately upon receipt of the auditor’s reports. Anticipated Completion Date: These corrective actions will be implemented for the fiscal year ending June 30, 2026 audit cycle, with full compliance expected by the applicable Federal Audit Clearinghouse submission deadline. Responsible Party: Finance Director

View Audit 401844

Finding 1215172 (2025-001)

Material Weakness 2025

COMMISSION OF PUBLIC WORKS OF NEW ELLENTON

SC

HUD Housing Programs

The duties will be segregated as much as possible, and the Board of Directors will remain involved in reviewing the financial statements of the Commission.

View Audit 401842

Finding 1215171 (2025-001)

Material Weakness 2025

Cheney School District No. 360

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Questioned Costs

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Cheney School District No. 360 September 1, 2024 through August 31, 2025 This schedule presents the corrective action planned by the District for findings reported in this report in accordance with Title 2 U.S. Code of Federal Regul...

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Cheney School District No. 360 September 1, 2024 through August 31, 2025 This schedule presents the corrective action planned by the District for findings reported in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2025-001 Finding caption: The District did not have adequate internal controls and did not comply with federal Title I assessment system security and eligibility requirements.Name, address, and telephone of District contact person: Jamie Reed, Director of Finance and Operations 12414 S. Andrus Road (509) 559-4501 Corrective action the auditee plans to take in response to the finding: Assessment system security: Assessment Administration Procedures have been reviewed for the 2025-2026 school year by Building Assessment Coordinators (BAC). They will ensure a Test Security Building Plan (TSBP) will be provided for the WIDA assessment administered in their building this school year. BAC Assessment Google folders for 2026-2027 school year are currently being adjusted to provide additional organization to ensure all required documents are completed by BAC's then submitted to the District Assessment Coordinator (DAC) upon completion of the assessment window. Eligibility: The District has already begun corrective actions to address these concerns. District staff have reviewed federal Title I ranking and allocation requirements, including OSPI guidance related to poverty ranking methodology and the 75 percent rule. The District will implement additional review procedures during the annual Title I application and budgeting process to verify poverty calculations, school rankings, and allocation methodologies prior to submission. The District will also document comparability and supplemental funding determinations for any qualifying schools not directly served with Title I funds. Additionally, the District will provide targeted training for staff responsible for federal program administration and budgeting to ensure ongoing compliance with federal and OSPI Title I requirements. Anticipated date to complete the corrective action: Corrective review for the end of the 25-26 school year and full corrective action for the 26-27 school year.

View Audit 401839

Finding 1215168 (2025-007)

Material Weakness 2025

Sampson County

NC

Reporting Eligibility

Corrective Action Plan Audit Period: 2025 Audit Finding Reference Number: 2025-07 Description of Deficiency: SEFSA Preparation Finding: During compliance testing, it was noted that certain amounts reported on the Schedule of Expenditures of Federal and State Awards could not be readily reconciled to...

Corrective Action Plan Audit Period: 2025 Audit Finding Reference Number: 2025-07 Description of Deficiency: SEFSA Preparation Finding: During compliance testing, it was noted that certain amounts reported on the Schedule of Expenditures of Federal and State Awards could not be readily reconciled to the general ledger. Corrective Action To address this finding, the County will implement enhanced procedures over the preparation and review of the SEFSA. Specifically, the County will take the following actions: • Maintain more detailed supporting documentation for all SEFSA balances to ensure amounts reported can be traced to the general ledger. • Perform a formal reconciliation of the SEFSA to the general ledger as part of the year-end reporting process. • Conduct an enhanced management-level review of the SEFSA, including verification of reconciliations and significant amounts. • Provide ongoing training and guidance to staff involved in SEFSA preparation to support accurate and complete reporting. This Corrective Action Plan is implemented for the fiscal year ending June 30, 2026 and ongoing thereafter.

View Audit 401835

Finding 1215164 (2025-005)

Material Weakness 2025

Grant Community Consolidated School District #110

IL

School Nutrition Programs Questioned Costs Cash Management

Finding No. 2025-005 Condition – The District did not prepare bank reconciliations during fiscal year 2025. As a result, a portion of National School Lunch and School Breakfast program receipts were not promptly credited to the appropriate food service revenue accounts, and those reimbursements that...

Finding No. 2025-005 Condition – The District did not prepare bank reconciliations during fiscal year 2025. As a result, a portion of National School Lunch and School Breakfast program receipts were not promptly credited to the appropriate food service revenue accounts, and those reimbursements that were recorded incorrectly recorded to the Evidence-Based Funding revenue account in error. Plan – The District will perform bank reconciliations in a timely manner and ensure that National School Lunch and School Breakfast program receipts are appropriately recorded to the proper food service revenue accounts. Anticipated Date of Completion: 7/1/2025 - current Name of Contact Person: Matt Stines, Superintendent

View Audit 401821

Finding 1215158 (2025-004)

Material Weakness 2025

Grant Community Consolidated School District #110

IL

School Nutrition Programs Internal Control / Segregation of Duties Questioned Costs § 200.303

Finding No. 2025-004 Condition – Claims submitted for reimbursement did not reconcile with the District’s internally prepared monthly claim summary report. Plan – The District will ensure that meal counts are thoroughly reviewed prior to submission. Meal counts are entered into the computer by the F...

Finding No. 2025-004 Condition – Claims submitted for reimbursement did not reconcile with the District’s internally prepared monthly claim summary report. Plan – The District will ensure that meal counts are thoroughly reviewed prior to submission. Meal counts are entered into the computer by the FSMC, and has been a place where errors have occurred. The district secretary is responsible for entering the meal counts into the state system. She is verifying the counts from the FSMC, comparing to attendance and invoices, and ensuring correct data goes into IWAS. This was started last spring, when we became aware of FSMC inconsistencies. The current year, FY26, has been much more accurate. Anticipated Date of Completion: current – 9/1/2026 Name of Contact Person: Matt Stines, Superintendent

View Audit 401821

Finding 1215152 (2025-013)

Material Weakness 2025

Friends Alliance Housing Ii,inc D/b/a Friendship House

LA

HUD Housing Programs

Management will implement an insurance compliance calendar with renewal tracking, assign responsibility for monitoring coverage, establish a funding mechanism for premiums, and retain documentation of policy renewals, payments, and annual flood-zone confirmations to ensure continuous coverage.

View Audit 401818

Finding 1215151 (2025-012)

Material Weakness 2025

Friends Alliance Housing Ii,inc D/b/a Friendship House

LA

HUD Housing Programs Reporting

Management will begin year-end closing procedures earlier, establish internal deadlines, engage the auditor earlier, and implement a REAC submission calendar assigning responsibilities and target dates. Evidence of timely submission will be retained, including confirmations or screenshots.

View Audit 401818

Finding 1215150 (2025-011)

Material Weakness 2025

Friends Alliance Housing Ii,inc D/b/a Friendship House

LA

Subrecipient Monitoring HUD Housing Programs Internal Control / Segregation of Duties

Management will implement a monthly reserve funding checklist, automate recurring reserve transfers where feasible, and require Board review of reserve account activity. Reserve deposits will be supported by bank statements and documented through signed monthly checklists, with exceptions documented...

Management will implement a monthly reserve funding checklist, automate recurring reserve transfers where feasible, and require Board review of reserve account activity. Reserve deposits will be supported by bank statements and documented through signed monthly checklists, with exceptions documented and remediated.

View Audit 401818

Finding 1215149 (2025-010)

Material Weakness 2025

Friends Alliance Housing Ii,inc D/b/a Friendship House

LA

Questioned Costs HUD Housing Programs Equipment & Real Property Management

Management will request retroactive HUD disposition approval and either demonstrate proper handling of proceeds or reimburse/deposit funds as directed by HUD. A written fixed-asset policy will be implemented requiring HUD approval prior to asset disposal, Board approval of dispositions, and retentio...

Management will request retroactive HUD disposition approval and either demonstrate proper handling of proceeds or reimburse/deposit funds as directed by HUD. A written fixed-asset policy will be implemented requiring HUD approval prior to asset disposal, Board approval of dispositions, and retention of HUD correspondence and disposition documentation.

View Audit 401818

Finding 1215148 (2025-009)

Material Weakness 2025

Friends Alliance Housing Ii,inc D/b/a Friendship House

LA

Allowable Costs / Cost Principles Questioned Costs

Management will perform a line-item review of all exceptions identified, obtain missing documentation to support allowability and allocability, reclassify costs to non-federal cost centers where appropriate, or reimburse the program for unsupported costs. A reconciliation schedule will be prepared i...

Management will perform a line-item review of all exceptions identified, obtain missing documentation to support allowability and allocability, reclassify costs to non-federal cost centers where appropriate, or reimburse the program for unsupported costs. A reconciliation schedule will be prepared identifying each exception and resolution method. Controls will be strengthened by requiring complete documentation, implementing a multi-level review process, establishing property-specific coding procedures, and training staff on federal allowability requirements.

View Audit 401818

Finding 1215141 (2025-004)

Material Weakness 2025

Inter-Tribal Council of Michgian, Inc.

MI

Subrecipient Monitoring Internal Control / Segregation of Duties § 200.331

2025-004: Subrecipient Monitoring - Contractor vs. Subrecipient Determination (Significant Deficiency in Internal Control) Statement of Condition/Criteria: 2 CFR §200.331 requires pass-through entities to evaluate each subaward to determine whether the recipient is a subrecipient or a contractor. Th...

2025-004: Subrecipient Monitoring - Contractor vs. Subrecipient Determination (Significant Deficiency in Internal Control) Statement of Condition/Criteria: 2 CFR §200.331 requires pass-through entities to evaluate each subaward to determine whether the recipient is a subrecipient or a contractor. This evaluation should be based on the characteristics outlined in 2 CFR §200.331(a) and (b) and documented to support proper classification. Effective internal control over federal awards also requires documentation of compliance-related judgments to ensure consistent application and oversight. During our testing of internal controls over compliance, we noted that the Organization does not maintain formal documentation supporting its evaluation of whether award recipients are classified as contractors or subrecipients in accordance with Uniform Guidance. Planned Corrective Action: The Council will work to implement requirements at the program level to evaluate and document all contracts to properly identify between contract and subaward. Contact person responsible for corrective action plan: Clayton Kincheloe, Executive Director Anticipated Completion Date: September 2026

View Audit 401814

Finding 1215135 (2025-003)

Material Weakness 2025

Inter-Tribal Council of Michgian, Inc.

MI

Subrecipient Monitoring

2025-003: Subrecipient Monitoring – Ineligible Subaward (Noncompliance) and Significant Deficiency in Internal Control Statement of Condition/Criteria: According to 2 CFR § 25.300, a recipient may not make a subaward to a subrecipient that has not obtained a UEI and provided it to the recipient. A r...

2025-003: Subrecipient Monitoring – Ineligible Subaward (Noncompliance) and Significant Deficiency in Internal Control Statement of Condition/Criteria: According to 2 CFR § 25.300, a recipient may not make a subaward to a subrecipient that has not obtained a UEI and provided it to the recipient. A recipient must notify any potential subrecipients that the recipient cannot make a subaward unless the subrecipient obtains and provides a UEI to the recipient. For the major program tested, $39,000 of subawards were made to a subrecipient (LIFT), who does not have a UEI. Although due diligence was done in attempted to obtain the information, the EIN was received instead. Planned Corrective Action: Communication has been made to program managers regarding the requirement and due diligence will be done in checking the correct UEI with the FAC prior to signing any contracts for subawards. Contact person responsible for corrective action plan: Clayton Kincheloe, Executive Director Anticipated Completion Date: September 2026

View Audit 401814

Finding 1215134 (2025-002)

Material Weakness 2025

Inter-Tribal Council of Michgian, Inc.

MI

Subrecipient Monitoring § 200.332

2025-002: Subrecipient Monitoring – Risk Assessment (Noncompliance) and Significant Deficiency in Internal Control Statement of Condition/Criteria: According to 2 CFR § 200.332, a pass-through entity must evaluate each subrecipient's fraud risk and risk of noncompliance as a form of subrecipient mon...

2025-002: Subrecipient Monitoring – Risk Assessment (Noncompliance) and Significant Deficiency in Internal Control Statement of Condition/Criteria: According to 2 CFR § 200.332, a pass-through entity must evaluate each subrecipient's fraud risk and risk of noncompliance as a form of subrecipient monitoring. In doing so, a pass-through entity must review financial reports, including their financial audits, ensure that the subrecipient takes corrective action on all significant developments affecting the subaward, issue a management decision on any audit findings pertaining only to the Federal award provided to the subrecipient from the pass-through and resolve audit findings specifically related to the subaward. If a finding rises to a certain level, the pass-through should consider taking action against noncompliant subrecipients. The organization does not have a formal risk assessment process in place. As of the date of fieldwork, audit reports of member tribes receiving subrecipient payments were not all received and therefore, were not reviewed to perform a proper risk assessment. We additionally noted that a quarterly report was not submitted as required per the agreement and funds were still distributed. Planned Corrective Action: The Council will work on implementing an efficient, yet effective risk assessment process for all subrecipients. Contact person responsible for corrective action plan: Clayton Kincheloe, Executive Director Anticipated Completion Date: September 2026

View Audit 401814

Finding 1215128 (2025-001)

Material Weakness 2025

Inter-Tribal Council of Michgian, Inc.

MI

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring

2025-001: Delinquent Data Collection Form Filing (SF-SAC) (Noncompliance) Statement of Condition/Criteria: Uniform Guidance requires the auditee to submit a reporting package and Data Collection Form to the Federal Audit Clearinghouse within the prescribed timeframe. The auditee must submit the repo...

2025-001: Delinquent Data Collection Form Filing (SF-SAC) (Noncompliance) Statement of Condition/Criteria: Uniform Guidance requires the auditee to submit a reporting package and Data Collection Form to the Federal Audit Clearinghouse within the prescribed timeframe. The auditee must submit the reporting package and DCF within the earlier of 30 calendar days after receipt of the auditor’s reports, or 9 months after the end of the audit period. For the fiscal year ended 9/30/2024, the auditee’s Data Collection Form and reporting package were not submitted timely to the Federal Audit Clearinghouse. Failure to submit the Data Collection Form and reporting package timely may result in delayed federal oversight and monitoring, increased risk of federal agencies deeming the organization noncompliant with Single Audit requirements, or potential sanctions including withholding of federal awards and/or suspension of future funding. Planned Corrective Action: The Council will implement a Single Audit compliance calendar to ensure timely filing. The Executive Director will be responsible for submission of the Data Collection Form and reporting package and will retain confirmation documentation in the finance records. Contact person responsible for corrective action plan: Clayton Kincheloe, Executive Director Anticipated Completion Date: September 2026

View Audit 401814

Finding 1215122 (2025-001)

Material Weakness 2025

St. Louis Housing Authority

MO

Questioned Costs Eligibility HUD Housing Programs

Management's Response: The St. Louis Housing Authority (SLHA) accepts the recommendation and acknowledges the excess of failed inspections discovered during the Single Audit. The 24-month inspection cycle is a strict requirement under Federal Regulation 24 CFR § 982.405(a), which mandates that Publi...

Management's Response: The St. Louis Housing Authority (SLHA) accepts the recommendation and acknowledges the excess of failed inspections discovered during the Single Audit. The 24-month inspection cycle is a strict requirement under Federal Regulation 24 CFR § 982.405(a), which mandates that Public Housing Authorities must inspect assisted units at least biennially. Furthermore, SLHA's Administrative Plan incorporates these HUD standards as mandatory operating procedures. Identified Causes of Deficiency: Supervisory Oversight, Operational Monitoring, and Compliance Enforcement The audit identified insufficient oversight in operational monitoring and compliance monitoring, which resulted in missed biennial inspection deadlines for inspections overdue by more than 48 months. This noncompliance with HUD inspection frequency requirements, combined with inadequate staff monitoring, compromised both program integrity and data accuracy. Ensuring that all assisted units meet Housing Quality Standards (HQS) is central to SLHA's mission to provide safe, decent, and sanitary housing. orrective Actions: Contract Assistance, Staffing Adjustments, and Enhanced Database Reviews SLHA has initiated a comprehensive corrective action plan designed to (1) eliminate the current backlog and (2) implement sustainable controls to ensure ongoing compliance. SLHA will engage an external provider to conduct Housing Quality Standards (HQS) inspections for a temporary period of approximately three months to accelerate backlog reduction. Current inspectors may be authorized to work overtime to increase daily inspection capacity during the remediation period. SLHA will also hire two additional inspectors to ensure adequate long-term staffing levels. SLHA will reduce the inspection backlog to zero overdue inspections exceeding 24 months and bring 100% of units into compliance with the biennial inspection requirement within 90 days of implementation. HCV Department leadership will implement mandatory retraining on HUD inspection requirements and perform biweekly inspection schedule reviews and monthly compliance monitoring to track timely inspection completion.

View Audit 401810

Finding 1215119 (2025-002)

Material Weakness 2025

Maine Connectivity Authority

ME

Reporting

Corrective Action Plan 2025-002 - Schedule of Expenditures and Federal Awards During the second half of fiscal year 2024 and during fiscal year 2025, the Authority conducted a project to implement a new ERP system to manage the Authority's financial activities from July 1, 2024, onwards. At the time...

Corrective Action Plan 2025-002 - Schedule of Expenditures and Federal Awards During the second half of fiscal year 2024 and during fiscal year 2025, the Authority conducted a project to implement a new ERP system to manage the Authority's financial activities from July 1, 2024, onwards. At the time of the audit issuance, the Authority is continuing to collaborate with supporting vendors to adjust the automated functionality of the new ERP system, specifically related to Accounts Receivable, Undisbursed Grant Funds and Grant Revenue recognition. The new ERP system has been successfully utilized for expenses, allocation of expenses and for federal grant reporting purposes. Manual adjustments were conducted by the Authority's finance team to prepare the overall financial statements that were audited. • The FY25 Audit process has highlighted the already known deficiencies that exist with the current integration of NetSuite as MCA's ERP. • The list of remaining deficiencies vs. the limitations of the system is currently being assessed by Oracle, MHI, and by an independent third-party expert, to assist MCA in navigating the process to effectively address each remaining issue in a timely manner. • MCA's Finance Team has developed a Financial Strategy and Action Plan Metric to assist with tracking monthly, quarterly, semi-annual, and annual reconciliations and reporting to ensure timeliness and accuracy of financial reporting. • Manual adjustments and journals are the resulting transactions derived from this metric which will continue to be necessary until MCA has completed the analysis with vendor partners to resolve and refine the ERP System configuration and workflows. MCA will continue to provide progress reports to the Audit & Risk Committee and MCA Board until resolved.

View Audit 401809

Finding 1215118 (2025-001)

Material Weakness 2025

La Peninsula Community Organization, Inc.

NY

Questioned Costs Reporting

Management acknowledges the delayed submission of the reporting package. The delay resulted primarily from the timing of final budget approvals and related information received from the funding source, which affected completion of the audited financial statements and Single Audit reporting process. ...

Management acknowledges the delayed submission of the reporting package. The delay resulted primarily from the timing of final budget approvals and related information received from the funding source, which affected completion of the audited financial statements and Single Audit reporting process. To address this matter and help ensure timely submission in future periods, Management will implement the following corrective actions: 1. Enhanced Internal Timeline: Establish internal deadlines for audit-related documentation and review to allow sufficient time for completion prior to the official reporting deadline. 2. Improved Coordination: Continue working closely with funding agencies, auditors, and internal personnel to facilitate timely communication, responses, and resolution of outstanding items during the audit process. 3. Resource Allocation: Dedicate additional internal resources, as needed, to support preparation of audit schedules, documentation, and financial reporting requirements in advance of deadlines. 4. Regular Progress Monitoring: Perform periodic status meetings and progress reviews throughout the audit process to proactively identify and address potential delays. Management believes these corrective actions will strengthen the overall reporting process and improve timely submission of future reporting packages.

View Audit 401801

Finding 1215071 (2025-002)

Material Weakness 2025

McLeod Health

SC

Reporting Allowable Costs / Cost Principles § 200.400 § 200.510

Condition: The Organization lacked effective controls over the review of the SEFA to ensure that only federal expenditures were included for fiscal year 2025 and to ensure that expenditures were appropriately tracked and recorded to the correct grant period. Planned Corrective Action: The Organizati...

Condition: The Organization lacked effective controls over the review of the SEFA to ensure that only federal expenditures were included for fiscal year 2025 and to ensure that expenditures were appropriately tracked and recorded to the correct grant period. Planned Corrective Action: The Organization will enhance its reviews around SEFA preparation and federal expenditure tracking to accommodate the lack of an integrated system as well as to ensure cut-off, completeness, and classification of federal expenditures. Contact person responsible for corrective action: David Anderson Anticipated Completion Date: September 30, 2026

View Audit 401785

Finding 1215070 (2025-001)

Material Weakness 2025

McLeod Health

SC

Period of Performance Questioned Costs Procurement, Suspension & Debarment § 200.303

Condition: The Organization was reimbursed $22,968 under the grant award for amounts incurred subsequent to the performance year of the grant. The control in place to review expenditures was not effective in identifying expenditures that were outside the grant period. Planned Corrective Action: The ...

Condition: The Organization was reimbursed $22,968 under the grant award for amounts incurred subsequent to the performance year of the grant. The control in place to review expenditures was not effective in identifying expenditures that were outside the grant period. Planned Corrective Action: The Organization will implement enhanced review procedures of federal expenditures sought for reimbursement to better align with the underlying accounting treatment. Contact person responsible for corrective action: David Anderson Anticipated Completion Date: September 30, 2026

View Audit 401785

Finding 1215069 (2025-001)

Material Weakness 2025

Lee County, Florida

FL

Allowable Costs / Cost Principles Questioned Costs HUD Housing Programs § 200.302 § 200.303 § 200.403

Community Development Block Grants Cluster Entitlements/Special Purpose – Assistance Listing No. 14.218 Recommendation: It is recommended the County modify its procedure to include: • Improve reconciliation procedures to verify hours per pay period recorded in quarterly spreadsheet agrees to hours r...

Community Development Block Grants Cluster Entitlements/Special Purpose – Assistance Listing No. 14.218 Recommendation: It is recommended the County modify its procedure to include: • Improve reconciliation procedures to verify hours per pay period recorded in quarterly spreadsheet agrees to hours recorded in the KRONOS system. • Record grant wages using the pay rate at the beginning of the quarter if recorded on a quarterly basis or use pay rates for each pay period if recorded on a pay period basis. Explanation of disagreement with audit finding: Management concurs with the auditor’s recommendations. Action taken in response to finding: • Document the audit process in a formalized SOP and cross train all reviewers from SRGA Admin, Budget, and Fiscal. • Create a checklist to accompany each personnel draw to ensure that after rates are verified that SRGA Admin certify that no RPAs or pay adjustments were approved during the pay periods reported and if there were, a second pay rate is entered for that draw and hours are split according to accurate rates/dates. • Document the cure process in the SOP to ensure that any errors found after the fact will be corrected with HUD to remain compliant and to ensure that no funds drawn in error are retained. • Include a date verification process prior to submission of the draw to ensure that staff did not duplicate any dates. This verification will be an audit of the Time Tracking Review completed by Admin staff. Ongoing training and coaching will be administered should duplicate entries be found on final draw reports. • Audit of all personnel draws for both allocations of CDBG-DR grants will be completed using the new SOP and verification tools before the end of FY2026. Name of the contact person responsible for corrective action: Nicole Turner, Director Planned completion date for corrective action plan: The above action plan will be implemented immediately; an audit of all personnel draws will be conducted using new process and checklists by the end of FY2026.

View Audit 401782

Finding 1215067 (2025-001)

Material Weakness 2025

The Port of Houston Authority

TX

Equipment & Real Property Management § 200.313

Management acknowledges that audit recommendation to strengthen controls over physical inventory procedures and documentation. • We agree that formalizing these processes will enhance accountability, transparency, and audit readiness. To address the first recommendation, management will update exist...

Management acknowledges that audit recommendation to strengthen controls over physical inventory procedures and documentation. • We agree that formalizing these processes will enhance accountability, transparency, and audit readiness. To address the first recommendation, management will update existing inventory policies and procedures to require formal, documented positive confirmation of physical inventory counts performed by each department. This will include signed attestations or electronic approvals from designated department representatives verifying that counts have been completed accurately and in accordance with established guidelines. Standardized templates and timelines will be implemented to ensure consistency across all departments. • Regarding the second recommendation, management will establish a centralized process for retaining inventory count documentation and reconciliation records. All supporting documentation, including count sheets, variance analyses, and reconciliation summaries, will be maintained in accordance with the organization's record retention policy. This will support ongoing monitoring activities and ensure documentation is readily available for audit review. Implementation of these enhancements is expected to be completed by September 30, 2026. Management is committed to continuous improvement of internal controls and appreciates Forvis Mazars’ recommendations. Anticipated Completion: September 30, 2026 Responsible Curtis E. Duncan, Controller Contact Person: 713-670-2476

View Audit 401778

Corrective Action Plans

Filters