Corrective Action Plans

Finding 1226975 (2025-004)

Material Weakness 2025

SD

Special Tests & Provisions Questioned Costs Significant Deficiency

Federal Agency Name: United States Department of Agriculture Program Name: Community Facilities Loans and Grants FFAL #10.766 Finding Summary: For eight of the twelve months, the Center did not document an independent review of the monthly reserve fund account balance as compared to the required min...

Federal Agency Name: United States Department of Agriculture Program Name: Community Facilities Loans and Grants FFAL #10.766 Finding Summary: For eight of the twelve months, the Center did not document an independent review of the monthly reserve fund account balance as compared to the required minimum balance. Corrective Action Plan: Effective September 2025, the balance of the reserve account, minimum required reserve balance and compliance of the reserve was presented to the board with formal documentation of review and approval being retained. Responsible Individuals: Mari Chambers, Chief Finance Officer Anticipated Completion Date: October 2025

View Audit 409157

Finding 1226974 (2025-005)

Material Weakness 2025

Operation Hope of Fairfield, Inc.

CT

Questioned Costs Subrecipient Monitoring Eligibility

Management has updated the policies and procedures manual to address this finding. For each housing unit, we are using the Department of Housing and Urban Development (HUB) rent reasonableness form at lease signing. This form will be updated annually for each unit. We will also be following the HUD ...

Management has updated the policies and procedures manual to address this finding. For each housing unit, we are using the Department of Housing and Urban Development (HUB) rent reasonableness form at lease signing. This form will be updated annually for each unit. We will also be following the HUD fair market rent determinations.

View Audit 409146

Finding 1226972 (2025-004)

Material Weakness 2025

Operation Hope of Fairfield, Inc.

CT

Questioned Costs Subrecipient Monitoring Reporting § 200.512

Operation Hope has retained a new audit firm and developed a new schedule to ensure future audits are completed in a timely manner and reports are submitted by the due date.

View Audit 409146

Finding 1226966 (2025-003)

Material Weakness 2025

Operation Hope of Fairfield, Inc.

CT

Allowable Costs / Cost Principles § 200.430

Management agrees with the finding that payroll costs charged to HUD-funded programs were based on estimated allocations and did not consistently reflect actual time and effort in accordance with 2 CFR §200.430 (Compensation—Personal Services) and applicable HUD program requirements. Management ackn...

Management agrees with the finding that payroll costs charged to HUD-funded programs were based on estimated allocations and did not consistently reflect actual time and effort in accordance with 2 CFR §200.430 (Compensation—Personal Services) and applicable HUD program requirements. Management acknowledges the requirement that personnel costs charged to HUD awards (e.g., CDBG, HOME, CoC) must be supported by records that accurately reflect work performed on eligible program activities.

View Audit 409146

Finding 1226960 (2025-002)

Material Weakness 2025

Operation Hope of Fairfield, Inc.

CT

Allowable Costs / Cost Principles

Management has updated its policies and procedures to require a formal annual review and update of the cost allocation plan. This review will occur in conjunction with the finalization and Board approval of the organization’s annual operating budget, ensuring that the CAP aligns with the most curren...

Management has updated its policies and procedures to require a formal annual review and update of the cost allocation plan. This review will occur in conjunction with the finalization and Board approval of the organization’s annual operating budget, ensuring that the CAP aligns with the most current program structure, funding sources, and cost allocation methodologies.

View Audit 409146

Finding 1226938 (2025-251)

Material Weakness 2025

Congregation Rachmistrivka Inc.

NJ

Significant Deficiency

Congregation Rachmistrivka, Inc. respectfully submits the following corrective action plans for the year ended August 31, 2025. Finding 25-1: The audit report was due to be received by the State of New Jersey no later than May 31, 2026. As a result, the audit was not submitted timely. Recommendation...

Congregation Rachmistrivka, Inc. respectfully submits the following corrective action plans for the year ended August 31, 2025. Finding 25-1: The audit report was due to be received by the State of New Jersey no later than May 31, 2026. As a result, the audit was not submitted timely. Recommendation: The School should alert the auditor about new funding received during the year to give ample time to research and prepare. Action Taken: The administrator will monitor the School’s funding that they receive throughout the year and will alert the auditor as soon as they receive funding from a new program. As such, the required corrective actions have been implemented. Implementation Date: Corrective Action Plan has been implemented as of June 11, 2026. Person Responsible for Implementation: Simon Balsam, the Administrator, is the responsible party for implementation of the CAP. Telephone Number: (732) 942-4582.

View Audit 409132

Finding 1226936 (2025-013)

Material Weakness 2025

County of Essex, Virginia

VA

Questioned Costs Reporting Internal Control / Segregation of Duties § 200.512

We agree with the auditor's comments. The delay was a result of turnover in personnel and the additional workload of school finances. Corrective action has been taken and County finance personnel are working to ensure this delay does not occur again in the future.

View Audit 409120

Finding 1226932 (2025-012)

Material Weakness 2025

County of Essex, Virginia

VA

Procurement, Suspension & Debarment § 200.303 § 200.318 § 200.326

We agree with the auditor's comments. A previously established procurement process titled School Fund Handbook was located, updated to reflect current purchasing process and policy per the Essex County Public Schools Policy Manual Section D, Fiscal Management on March 9, 2026. The Fund Handbook was ...

We agree with the auditor's comments. A previously established procurement process titled School Fund Handbook was located, updated to reflect current purchasing process and policy per the Essex County Public Schools Policy Manual Section D, Fiscal Management on March 9, 2026. The Fund Handbook was distributed to administrative staff and a review and update recommended to incorporate all applicable requirements prescribed by 2 CFR §§ 200.318 through 200.326, including Federal procurement methods, competition requirements, documentation standards, and suspension and debarment requirements.

View Audit 409120

Finding 1226928 (2025-011)

Material Weakness 2025

County of Essex, Virginia

VA

Allowable Costs / Cost Principles § 200.302 § 200.430

We agree with the auditor's comments. Prior to transferring financial responsibilities back to Essex County Public Schools Administration effective July 1, 2026, a process was put into place for all staff to have current and fully executed contracts stating their pay rate, FLSA status, expected leng...

We agree with the auditor's comments. Prior to transferring financial responsibilities back to Essex County Public Schools Administration effective July 1, 2026, a process was put into place for all staff to have current and fully executed contracts stating their pay rate, FLSA status, expected length of contract (with number of workdays), and associated benefits. A process was also established to utilize an automated or manual timekeeping report to reflect all hours worked and approved by the supervisor prior to submission for payment. All records should be matched and retained to support payroll payments.

View Audit 409120

Finding 1226485 (2025-001)

Material Weakness 2025

Beacon Health System, Inc.

IN

Subrecipient Monitoring Eligibility Reporting

The Corporation screens applicants for eligibility by following the state of Indiana guidelines as provided through the INWIC system used to enter, track, and store information about applicants. Based on guidance contained in 7 CFR Section 246, states were encouraged to move to a paperless system. S...

The Corporation screens applicants for eligibility by following the state of Indiana guidelines as provided through the INWIC system used to enter, track, and store information about applicants. Based on guidance contained in 7 CFR Section 246, states were encouraged to move to a paperless system. Specifically, federal guidance contained in 7CFR 246.7 (i)(4) and (5)(i) outlines acceptable documentation to be included on certification forms as “a description of the document(s) used to determine residency and identity or a copy of the document(s) used or the applicant’s written statement when no documentation exists,” and “a description of the document(s) used to determine income eligibility or a copy of the document(s) in the file.” The State of Indiana has followed that guidance and does not require the Corporation to retain copies of the WIC applicant’s proof of eligibility. Therefore, the auditors were not able to test internal controls over compliance or compliance over the eligibility compliance requirement through re-performance and have issued a qualified opinion based on the scope limitations. Compliance with State of Indiana participant eligibility requirements is the responsibility of Rebecca Lies, WIC Coordinator. As the Corporation follows the State of Indiana’s paperless system as described above, no further corrective action will be taken.

View Audit 409117

Finding 1226484 (2025-001)

Material Weakness 2025

Finger Lakes Migrant Health Care Proj INC Dba Finger Lakes Comm Health

NY

Procurement, Suspension & Debarment Subrecipient Monitoring

Health Resources and Services Administration Mary Zelazny, CEO respectfully submits the following corrective action plan for the year ended December 31, 2025: CohnReznick LLP 1301 Avenue of the Americas New York, NY 10019 Audit Period: December 31, 2025 The findings from the December 31, 2025, sched...

Health Resources and Services Administration Mary Zelazny, CEO respectfully submits the following corrective action plan for the year ended December 31, 2025: CohnReznick LLP 1301 Avenue of the Americas New York, NY 10019 Audit Period: December 31, 2025 The findings from the December 31, 2025, schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS FEDERAL AWARD PROGRAM AUDITS Item 2025-001 Procurement, Suspension and Debarment (Significant Deficiency) During our audit, we noted that there is no evidence that any exclusion search was conducted from January 2025 to May 2025. Recommendation We recommend that FLCH train its employees in relation to their policies and procedures on conducting exclusion screening and on proper documentation thereof. Action Taken Management agrees with the finding. As of the effectivity date below, procedures have been revised and personnel have been trained to help ensure the accuracy, completeness and timeliness of exclusion searches. The Compliance department has added periodic internal auditing of the process to their calendar. Effective Date: June 1, 2025 Sincerely yours, Name: Mary Zelazny Title: CEO. Finger Lakes Community Health, Inc. (f/k/a Finger Lakes Migrant Health Care Project, Inc.)

View Audit 409116

Finding 1226482 (2025-007)

Material Weakness 2025

Reach Community Development, Inc.

OR

Questioned Costs Special Tests & Provisions HUD Housing Programs

REACH has policies in place for annual unit inspections. Management created a new unit inspection form to capture inspection, work orders, and re-inspection in 2025. Portfolio Managers reviewed these new forms with site teams and provided training on how to complete these forms. Property management ...

REACH has policies in place for annual unit inspections. Management created a new unit inspection form to capture inspection, work orders, and re-inspection in 2025. Portfolio Managers reviewed these new forms with site teams and provided training on how to complete these forms. Property management team also sent emails and Teams reminders to the site team to ensure unit inspection, work orders, and re-inspections are completed on time and properly. During the second quarter of 2026, REACH outsourced both property management and compliance functions to a third-party management company to address outstanding compliance issues.

View Audit 409109

Finding 1226481 (2025-006)

Material Weakness 2025

Reach Community Development, Inc.

OR

Eligibility Questioned Costs HUD Housing Programs

REACH has policies in place to ensure recertifications and income verification are performed timely, tenant eligibility is correctly determined, and the tenant files are properly maintained. During the second quarter of 2026, REACH outsourced property management and compliance functions to a third-p...

REACH has policies in place to ensure recertifications and income verification are performed timely, tenant eligibility is correctly determined, and the tenant files are properly maintained. During the second quarter of 2026, REACH outsourced property management and compliance functions to a third-party management company to address the outstanding compliance issues.

View Audit 409109

Finding 1226480 (2025-001)

Material Weakness 2025

Reach Community Development, Inc.

OR

Eligibility Questioned Costs Significant Deficiency

REACH’s 2024 consolidated audit report was issued in mid-November 2025. REACH Compliance Management reviewed the Oregon Housing and Community Services (OHCS) Housing Trust Fund (HTF) program manual and did not find any specific requirements about certifications other than at move-in. REACH reached o...

REACH’s 2024 consolidated audit report was issued in mid-November 2025. REACH Compliance Management reviewed the Oregon Housing and Community Services (OHCS) Housing Trust Fund (HTF) program manual and did not find any specific requirements about certifications other than at move-in. REACH reached out to OHCS and did not receive any clarifications. REACH operated with the available guidance for HTF at the time. OHCS have since updated the HTF manual as of June 2026. REACH now have an updated HTF manual which outlines when full recertification with income verifications are required and will follow those rules going forward.

View Audit 409109

Finding 1226479 (2025-005)

Material Weakness 2025

Reach Community Development, Inc.

OR

Eligibility Questioned Costs HUD Housing Programs

Once REACH Asset Management Team was notified of this audit finding, our Asset Management team communicated this finding to Ad-West. They would set up a new process to ensure the reporting of HOME units, HOME unit types, and compliance would be met on all HOME units.

View Audit 409109

Finding 1226478 (2025-004)

Material Weakness 2025

Reach Community Development, Inc.

OR

Eligibility Questioned Costs HUD Housing Programs

Once REACH was notified about this audit finding, Property Management established a new review process to review the HOME units that would be re-classified the next time there is a vacant unit of the corresponding size/type. This is a “next available unit” rule. It will be addressed when the existin...

Once REACH was notified about this audit finding, Property Management established a new review process to review the HOME units that would be re-classified the next time there is a vacant unit of the corresponding size/type. This is a “next available unit” rule. It will be addressed when the existing resident moves out. Our third-party Property Management company will continue to monitor this finding.

View Audit 409109

Finding 1226477 (2025-003)

Material Weakness 2025

Reach Community Development, Inc.

OR

Eligibility Questioned Costs HUD Housing Programs

REACH’s 2024 consolidated audit report was issued in mid-November 2025. Once we were notified about this audit finding, Compliance Management conducted an in-depth review of this finding and determined that one extra 3-bedroom and one fewer 4-bedroom at Covington Commons were incorrectly set up in o...

REACH’s 2024 consolidated audit report was issued in mid-November 2025. Once we were notified about this audit finding, Compliance Management conducted an in-depth review of this finding and determined that one extra 3-bedroom and one fewer 4-bedroom at Covington Commons were incorrectly set up in our Yardi system. REACH have since corrected this issue in the Yardi system. REACH will continue to monitor vacant two-bedrooms at Cascadia Village as they become available. There are only two 2-bedrooms that are not designated as HOME. We noted that unit #72 was not set up properly in our Yardi system. REACH have corrected this issue in the system.

View Audit 409109

Finding 1226476 (2025-002)

Material Weakness 2025

Reach Community Development, Inc.

OR

Eligibility Questioned Costs HUD Housing Programs

REACH’s 2024 consolidated audit report was issued in mid-November 2025. REACH has policies and procedures in place to monitor compliance of recertifications, and correct income verification procedures are performed timely. Once we were notified of this finding, Compliance Management Compliance team ...

REACH’s 2024 consolidated audit report was issued in mid-November 2025. REACH has policies and procedures in place to monitor compliance of recertifications, and correct income verification procedures are performed timely. Once we were notified of this finding, Compliance Management Compliance team conducted a full review of all HOME regulatory agreements in the portfolio, including County, City and Commerce HOME funding. Compliance Management also created a spreadsheet to track which units are due for the appropriate HOME recertification.

View Audit 409109

Finding 1226462 (2025-002)

Material Weakness 2025

City of Marion

SC

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting

The City relies heavily on supervisory oversight. The City has in place many internal controls to help reduce risks of financial reporting objectives and provide safeguards for the City's assets. Some of the controls are a supervisor has to review and sign off on all bank statements and reconciliati...

The City relies heavily on supervisory oversight. The City has in place many internal controls to help reduce risks of financial reporting objectives and provide safeguards for the City's assets. Some of the controls are a supervisor has to review and sign off on all bank statements and reconciliations, and any journal entries. All accounts payable invoices and reports are reviewed by at least two people.

View Audit 409088

Finding 1226461 (2025-001)

Material Weakness 2025

City of Marion

SC

The City staff work with the auditor in the preparation and subsequently reviews and approves all statements and footnote disclosures.

View Audit 409088

Finding 1226452 (2025-001)

Material Weakness 2025

CITY OF AUBURN CITY HALL

IN

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.214 § 200.303

FINDING 2025-001 Finding Subject: Coronavirus State and Local Fiscal Recovery Funds - Suspension and Debarment Contact Person Responsible for Corrective Action: Lorrie K. Pontius Contact Phone Number and Email Address: 260-925-6450 x1101 lkpontius@ci.auburn.in.us Views of Responsible Officials: “We ...

FINDING 2025-001 Finding Subject: Coronavirus State and Local Fiscal Recovery Funds - Suspension and Debarment Contact Person Responsible for Corrective Action: Lorrie K. Pontius Contact Phone Number and Email Address: 260-925-6450 x1101 lkpontius@ci.auburn.in.us Views of Responsible Officials: “We concur with the finding.” Description of Corrective Action Plan: The Corrective Action Plan will require verification through the Excluded Parties List System (EPLS) in SAM.gov before any award, contract execution, renewal, or contract modification is approved. Verification will be printed and/or saved as a PDF copy of the SAM.gov search results showing the date of the verification and the search outcome. Then verification documentation will be sent to a secondary reviewer electronically and maintained in the contract file according to records retention policy. Anticipated Completion Date: As a corrective measure, verification through the EPLS in the System for Award Management (SAM.gov) will be conducted immediately as of the completion date of this CAP, June 3, 2026 and prior to any award, contract execution, renewal, or modification.

View Audit 409087

Finding 1226451 (2025-003)

Material Weakness 2025

Catherine McAuley Center, Inc.

IA

Allowable Costs / Cost Principles

The accounting system will also be used to track expenditures by grant. Grant agreements will also be saved in a central location for simple access.

View Audit 409086

Finding 1226447 (2025-005)

Material Weakness 2025

Phoenix Indian Center

AZ

Allowable Costs / Cost Principles Reporting § 200.403 § 200.502 § 200.510

A designated Finance staff member with knowledge of the Uniform Guidance requirements will be responsible for overseeing SEFA preparation for each fiscal year-end. A grant-by-grant SEFA reconciliation will be completed prior to yearend close, with particular attention to period-end cutoff. The SEFA ...

A designated Finance staff member with knowledge of the Uniform Guidance requirements will be responsible for overseeing SEFA preparation for each fiscal year-end. A grant-by-grant SEFA reconciliation will be completed prior to yearend close, with particular attention to period-end cutoff. The SEFA will be independently reviewed by the Finance Director and compared to grant expenditure reports before the audit commences. Management will engage its external accountants earlier in the year-end close process.

View Audit 409082

Finding 1226446 (2025-004)

Material Weakness 2025

Phoenix Indian Center

AZ

Reporting Significant Deficiency Internal Control / Segregation of Duties § 200.512

At the start of each fiscal year, the Finance Director will prepare a submission timeline working backward from the March 31 FAC deadline, establishing interim milestones for year-end close, draft financial statement preparation, management review, and auditor fieldwork. Progress against the submiss...

At the start of each fiscal year, the Finance Director will prepare a submission timeline working backward from the March 31 FAC deadline, establishing interim milestones for year-end close, draft financial statement preparation, management review, and auditor fieldwork. Progress against the submission timeline will be monitored by the CEO and reported to the Board of Directors on a quarterly basis. Management will engage its external auditors earlier in the process and ensure adequate finance staffing is maintained prior to the fiscal yearend close.

View Audit 409082

Finding 1226441 (2025-003)

Material Weakness 2025

City of Clarksville

TX

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303 § 200.512

The City of Clarksville, Texas agrees with this repeated finding, which corresponds to prior-year Finding 2024-003 and remains open. Management will maintain an audit and federal-reporting calendar that identifies the Federal Audit Clearinghouse submission deadline as the earlier of 30 calendar days...

The City of Clarksville, Texas agrees with this repeated finding, which corresponds to prior-year Finding 2024-003 and remains open. Management will maintain an audit and federal-reporting calendar that identifies the Federal Audit Clearinghouse submission deadline as the earlier of 30 calendar days after receipt of the auditor’s report or nine months after fiscal year-end. The Mayor and designated accounting personnel will assign responsibility for audit coordination and FAC submission, close the accounting records timely, promptly provide requested records, monitor unresolved audit items, and coordinate with the auditor throughout the audit cycle. Management will document the person responsible for submitting the reporting package and notifying the pass-through agency, as applicable. Evidence of FAC submission and acceptance, agency notification, and related correspondence will be retained in the federal-award compliance files. These procedures are intended to improve financial-record readiness, governance continuity, and timely completion and submission of the Single Audit reporting package

View Audit 409058

Corrective Action Plans

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