Corrective Action Plans

Finding 1226187 (2025-003)

Material Weakness 2025

IA

HUD Housing Programs

In the future all public housing files for both the Section 8 Voucher Program and Public Housing Program will have a checklist of required items. The checklist will be verified and documented by either the Executive Director or qualified employee. This will include who performed the review, the date...

In the future all public housing files for both the Section 8 Voucher Program and Public Housing Program will have a checklist of required items. The checklist will be verified and documented by either the Executive Director or qualified employee. This will include who performed the review, the date, and items reviewed.

View Audit 408828

Finding 1226186 (2025-002)

Material Weakness 2025

Low Rent Housing Agency of Burlington

IA

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Questioned Costs

To properly ensure internal controls, all segregation of duties will be documented beyond what is currently being done. For additional oversight of monthly reconciliation, it will be documented that this has had a secondary review. Additionally, a board member or another individual will review month...

To properly ensure internal controls, all segregation of duties will be documented beyond what is currently being done. For additional oversight of monthly reconciliation, it will be documented that this has had a secondary review. Additionally, a board member or another individual will review monthly bank statements, invoices, and related documentation. The board will review policy and focus on stricter internal controls to prevent any form of fraud.

View Audit 408828

Finding 1226184 (2025-001)

Material Weakness 2025

National Network to End Domestic Violence, Inc.

DC

Procurement, Suspension & Debarment § 200.320

NNEDV management and the finance team have reviewed the current policies regarding sole-source procurement. NNEDV’s leadership team has received training on procurement requirements and the policy manual will be updated to ensure NNEDV’s procurement policy is in line with 2 CFC 200. Anticipated Comp...

NNEDV management and the finance team have reviewed the current policies regarding sole-source procurement. NNEDV’s leadership team has received training on procurement requirements and the policy manual will be updated to ensure NNEDV’s procurement policy is in line with 2 CFC 200. Anticipated Completion Date: 7/31/2026, Responsible Contact Person: Ellen Yin-Wycoff, Assistant VP of Programs & Operations.

View Audit 408826

Finding 1226182 (2025-002)

Material Weakness 2025

National Network to End Domestic Violence, Inc.

DC

Subrecipient Monitoring § 200.332

NNEDV management have received training on the importance of sub-recipient monitoring, along with how and when it is to be performed. The outsourced CPA will work with program directors to ensure all subrecipient monitoring is completed by the end of summer. Anticipated Completion Date: 8/31/2026. R...

NNEDV management have received training on the importance of sub-recipient monitoring, along with how and when it is to be performed. The outsourced CPA will work with program directors to ensure all subrecipient monitoring is completed by the end of summer. Anticipated Completion Date: 8/31/2026. Responsible Contact Person: Ellen Yin-Wycoff, Assistant VP of Programs & Operations

View Audit 408826

Finding 1226178 (2025-001)

Material Weakness 2025

International Development Enterprises and Subsidiaries

CO

Subrecipient Monitoring § 200.303 § 200.332

Identifying Number: 2025-001 Subrecipient Monitoring Controls Finding: During fiscal year 2025, iDE passed federal funds to subrecipients under active federal awards that remained operational during a portion of the year prior to the termination of the underlying grant agreements. Although iDE revie...

Identifying Number: 2025-001 Subrecipient Monitoring Controls Finding: During fiscal year 2025, iDE passed federal funds to subrecipients under active federal awards that remained operational during a portion of the year prior to the termination of the underlying grant agreements. Although iDE reviewed subrecipient liquidation reports and reimbursement requests supporting expenditures incurred prior to award termination, iDE did not perform or document formal subrecipient risk assessments. Further, because risk assessments were not performed, iDE did not establish or implement monitoring procedures commensurate with assessed risk, such as documented reviews of performance information, follow-up on compliance matters, review of Single Audit reports, or other monitoring activities required by Uniform Guidance. Corrective Actions Taken or Planned: Name of Responsible Official: Melanie Mackintosh, Controller Anticipated Completion Date: December 31, 2026 Views of Responsible Officials and Planned Corrective Action: 1. Following the 2024 subrecipient monitoring finding, iDE created an updated subrecipient monitoring policy and sponsored global trainings. 2. There was no opportunity for correction of subrecipient monitoring of USAID grants in 2025 due to the USAID shutdown.

View Audit 408819

Finding 1226116 (2025-001)

Material Weakness 2025

Kokomo Housing Authority

IN

HUD Housing Programs Reporting

2025-001 – ALN 14.871 – Housing Voucher Cluster – Eligibility – Payment Standards Management acknowledged the finding and will follow the Auditor's recommendations as listed in the Schedule of Findings and Questioned Costs. Person Responsible for Correction of Finding: Mr. D. Steele, Chief Executive...

2025-001 – ALN 14.871 – Housing Voucher Cluster – Eligibility – Payment Standards Management acknowledged the finding and will follow the Auditor's recommendations as listed in the Schedule of Findings and Questioned Costs. Person Responsible for Correction of Finding: Mr. D. Steele, Chief Executive Officer Projected Completion Date: December 31, 2026

View Audit 408789

Finding 1226110 (2025-002)

Material Weakness 2025

Center for Mental Health

MT

Allowable Costs / Cost Principles § 200.426

This error resulted from staff turnover and transition of the draw process to new accounting personnel. We will review the allocation of allowable costs and strengthen controls to ensure accurate cost accounting for future submissions. The error will be corrected in the August 2026 draw submission. ...

This error resulted from staff turnover and transition of the draw process to new accounting personnel. We will review the allocation of allowable costs and strengthen controls to ensure accurate cost accounting for future submissions. The error will be corrected in the August 2026 draw submission. The Controller and CFO are responsible for implementing and monitoring these corrective actions.

View Audit 408781

Finding 1226109 (2025-001)

Material Weakness 2025

Center for Mental Health

MT

Cash Management

Implemented in November 2025. The Controller prepares the monthly draw, and the CFO reviews, approves, and submits it. The approval email is retained with the payment submission documentation. Responsibility for maintaining this process rests with the Controller and CFO.

View Audit 408781

Finding 1226108 (2025-001)

Material Weakness 2025

Advisewell, Inc. Formerly Known As Eqhealth Qio, Inc.

LA

Allowable Costs / Cost Principles § 200.403 § 200.405 § 200.414

Corrective Action Plan: Management is in the process of working with HHS to renew the Provisional Rate agreements. The anticipation is that the agreement will be completed by the end of 2026. Anticipated Completion Date: December 31, 2026

View Audit 408759

Finding 1226107 (2025-002)

Material Weakness 2025

City of Hempstead, Texas

TX

Internal Control / Segregation of Duties Special Tests & Provisions Questioned Costs § 200.303 § 200.328

Finding 2025-002: Insufficient Documentation of Management Review of Section 3 Quarterly and Annual Reporting Planned Corrective Action: Management concurs with the finding. Although the related grant concluded during fiscal year 2025, the City will implement procedures to ensure that future federal...

Finding 2025-002: Insufficient Documentation of Management Review of Section 3 Quarterly and Annual Reporting Planned Corrective Action: Management concurs with the finding. Although the related grant concluded during fiscal year 2025, the City will implement procedures to ensure that future federal program reports, including any applicable Section 3 or similar compliance reports, are subject to documented management review and approval prior to submission. The procedures will require the preparer to provide each report and supporting documentation to City management for review, and evidence of approval, such as a signed review checklist, email approval, or electronic sign-off, will be retained in the grant files. The City Secretary will be responsible for ensuring that documented review and approval procedures are applied to future federal reporting requirements. Anticipated Completion Date: July 2026

View Audit 408755

Finding 1226104 (2025-005)

Material Weakness 2025

The Boulevard of Chicago, Inc.

IL

The prior year documents were not submitted by the due date due to delays in the finalization of the prior year audit. With the FY25 audit completed timely, management will review requirements for uploading the FY25 audit to the FAC to ensure timely upload in the current year.

View Audit 408754

Finding 1226102 (2025-004)

Material Weakness 2025

The Boulevard of Chicago, Inc.

IL

While management was unable to locate full documentation for certain staff, those staff were generally hired before the current management team was in place. For individuals hired under current management, documentation was readily available. Management will review its policies over document retenti...

While management was unable to locate full documentation for certain staff, those staff were generally hired before the current management team was in place. For individuals hired under current management, documentation was readily available. Management will review its policies over document retention with an emphasis on employee files to ensure documents are completed timely and saved in readily available locations.

View Audit 408754

Finding 1226100 (2025-003)

Material Weakness 2025

The Boulevard of Chicago, Inc.

IL

Reporting

Management and the accounting team will review all contracts and the SEFA prior to the start of the FY26 audit ensuring ALN numbers agree to the contracts. If there is difficulty in locating an ALN number, staff will reach out to funders to ensure the appropriate ALN is noted prior to sending a SEFA...

Management and the accounting team will review all contracts and the SEFA prior to the start of the FY26 audit ensuring ALN numbers agree to the contracts. If there is difficulty in locating an ALN number, staff will reach out to funders to ensure the appropriate ALN is noted prior to sending a SEFA to the auditor.

View Audit 408754

Finding 1226098 (2025-002)

Material Weakness 2025

The Boulevard of Chicago, Inc.

IL

Questioned Costs Allowable Costs / Cost Principles

Management will review all contracts to ensure the appropriate indirect costs rates are being used in calculations. A review process is in place in which a staff or grant accountant will prepare the indirect cost calculation, and the Accounting Manager or Director will review and approve. The accoun...

Management will review all contracts to ensure the appropriate indirect costs rates are being used in calculations. A review process is in place in which a staff or grant accountant will prepare the indirect cost calculation, and the Accounting Manager or Director will review and approve. The accounting team will also use formula driven excel calculations to try and avoid any manual input errors.

View Audit 408754

Finding 1226097 (2025-002)

Material Weakness 2025

Magnolia Manor of MacOn Supportive Housing, Inc.

GA

HUD Housing Programs Special Tests & Provisions

Magnolia Manor of Macon (Pacesetter Manor) has identified a posting error for a resident date of discharge that resulted in an overpayment by HUD. The correction has been submitted to HUD for processing/recovery of this overpayment. Beginning with the quarter ending June 30, 2026, we will implement ...

Magnolia Manor of Macon (Pacesetter Manor) has identified a posting error for a resident date of discharge that resulted in an overpayment by HUD. The correction has been submitted to HUD for processing/recovery of this overpayment. Beginning with the quarter ending June 30, 2026, we will implement a review of our census & billing system records for admissions and discharges and compare them to what has been submitted to HUD to ensure consistent/accurate recordkeeping. This review will take place by the end of the calendar month following the end of the calendar quarter. The facility Administrator has ultimate responsibility for ensuring that the review & reconciliation is complete. As this is an audit related item, the Magnolia Manor Director of Finance will monitor compliance annually in advance of the annual audit. Any items found to be incorrect will be investigated and resolved as part of the review process with any necessary adjustments submitted by the next processing cycle.

View Audit 408753

Finding 1226096 (2025-001)

Material Weakness 2025

Magnolia Manor of MacOn Supportive Housing, Inc.

GA

HUD Housing Programs Special Tests & Provisions

Magnolia Manor of Macon (Pacesetter Manor) has implemented an annual review schedule for the facility Administrator, Maintenance Supervisor and Community Relations Director to review and ensure that the annual physical inspection of all residential units has been completed. The review window will be...

Magnolia Manor of Macon (Pacesetter Manor) has implemented an annual review schedule for the facility Administrator, Maintenance Supervisor and Community Relations Director to review and ensure that the annual physical inspection of all residential units has been completed. The review window will be between April 1st and July 15th of each year. The facility Administrator has ultimate responsibility for ensuring that the inspections are complete. As this is an audit related item, the Magnolia Manor Director of Finance will monitor compliance annually in advance of the annual audit. Any units found not to have a physical copy of that fiscal year’s inspection report, will be re-inspected and documented before July 31st. A copy of each physical inspection report will be kept in a three-ring binder by the facility Administrator or their designee, as well as scanned into a network storage location.

View Audit 408753

Finding 1226095 (2025-002)

Material Weakness 2025

Oconto County, Wisconsin

WI

Questioned Costs Cash Management Material Weakness

2025-002 Reporting The county implemented procedures to complete review of claims and reconciliations. Planned completion date for corrective action: December 31, 2025

View Audit 408751

Finding 1226090 (2025-003)

Material Weakness 2025

Town of Clarksville

IN

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties § 200.303 § 200.329

FINDING 2025-003 Sherry Lockard, 812-283-1500, slockard@townofclarksville.com A. Coronavirus State and Local Fiscal Recovery Funds (IDOH fire dept grant) The Town concurs with the finding. INDIANA STATE BOARD OF ACCOUNTS 23 The Town will create a form for the Fire Department to use to have a second ...

FINDING 2025-003 Sherry Lockard, 812-283-1500, slockard@townofclarksville.com A. Coronavirus State and Local Fiscal Recovery Funds (IDOH fire dept grant) The Town concurs with the finding. INDIANA STATE BOARD OF ACCOUNTS 23 The Town will create a form for the Fire Department to use to have a second person review any reporting and requests for reimbursements when federal funds are involved. The form will be an attachment at the end of this document, therefore no further action is necessary.

View Audit 408741

Finding 1226089 (2025-002)

Material Weakness 2025

Town of Clarksville

IN

Subrecipient Monitoring Questioned Costs Material Weakness § 200.1 § 200.303

FINDING 2025-002 Sherry Lockard, 812-283-1500, slockard@townofclarksville.com A. Coronavirus State and Local Fiscal Recovery Funds The Town concurs with the finding. The Town was not aware contracts had to be signed by December 2024 for all “obligations”. The Town was under the impression the obliga...

FINDING 2025-002 Sherry Lockard, 812-283-1500, slockard@townofclarksville.com A. Coronavirus State and Local Fiscal Recovery Funds The Town concurs with the finding. The Town was not aware contracts had to be signed by December 2024 for all “obligations”. The Town was under the impression the obligations were submitted on the annual SLRF report, and that only the funds had to be spent for submitted obligations on the SLRF page by December 31, 2026. The Town was not able to obtain a contract that far in advance of the work to start, let alone be completed. At this time, we will await instructions from the Federal Agency as to what the Town needs to do regarding the expenses made after the ambiguous “obligation deadline”. For all future grants, the Town will designate the staff member who is in charge of that specific grant to create a checklist of requirements and to maintain that list until the grant is complete. (ATTACHMENT A)

View Audit 408741

Finding 1226088 (2025-005)

Material Weakness 2025

Westerly Area Rest Meals (warm) INC

RI

Procurement, Suspension & Debarment Significant Deficiency

The Organization lacked a formal procurement policy that was effective for the fiscal year ended June 30, 2025. A procurement policy which included all required elements was drafted and implemented with an effective date of July 1, 2025.

View Audit 408740

Finding 1226087 (2025-004)

Material Weakness 2025

Westerly Area Rest Meals (warm) INC

RI

Significant Deficiency

The Organization lacked such a policy that was effective for the fiscal year ended June 30, 2025. A policy which included all required elements was drafted and implemented with an effective date of July 1, 2025.

View Audit 408740

Finding 1226086 (2025-002)

Material Weakness 2025

Westerly Area Rest Meals (warm) INC

RI

Material Weakness

Management has implemented policies for document retention and has begun obtaining signed leases for all tenants for rental agreements.

View Audit 408740

Finding 1226085 (2025-026)

Material Weakness 2025

State of California

CA

Internal Control / Segregation of Duties Special Tests & Provisions Questioned Costs § 200.303

Special Tests and Provisions California Governor’s Office of Emergency Services On December 10, 2025, Cal OES implemented communication protocol improvements by reemphasizing correct threshold applicability prior to payment during team meetings. In addition, by August 31, 2026, Cal OES will revise i...

Special Tests and Provisions California Governor’s Office of Emergency Services On December 10, 2025, Cal OES implemented communication protocol improvements by reemphasizing correct threshold applicability prior to payment during team meetings. In addition, by August 31, 2026, Cal OES will revise its Project Threshold standard operating procedure to include a review control that verifies the applicability of project thresholds, specifically the Large Project threshold, based on the appropriate timing criteria. Cal OES will also provide training to all grants processing and support staff on the revised procedure, including how to correctly identify and enter Large Project Thresholds, verify disaster data against approved sources, and apply the appropriate thresholds for specific declaration dates. Refresher training will be provided as needed thereafter. Furthermore, guidance on Large Project Thresholds will be incorporated into the onboarding process for all new staff. Estimated Implementation Date: August 2026 Contact: - Heidi Palchik, Chief, Recovery Financial Administration Branch, lnteragency Recovery Coordination Section

View Audit 408731

Finding 1226084 (2025-025)

Material Weakness 2025

State of California

CA

Subrecipient Monitoring Procurement, Suspension & Debarment Reporting § 200.302 § 200.303 § 200.328 § 200.329

Reporting California Governor’s Office of Emergency Services Based on CSA's Federal Compliance Audit Report for the Fiscal Year Ended June 30, 2024 - Finding 2024-020, Cal OES revised its FFATA reporting procedures and has taken several actions to strengthen internal controls, resolve discrepancies ...

Reporting California Governor’s Office of Emergency Services Based on CSA's Federal Compliance Audit Report for the Fiscal Year Ended June 30, 2024 - Finding 2024-020, Cal OES revised its FFATA reporting procedures and has taken several actions to strengthen internal controls, resolve discrepancies among reporting systems, and ensure staff are fully trained to maintain compliance with all FFATA reporting requirements. In March of 2025, Cal OES developed the Financial Administrative Branch (FAB) FFATA SOP (Attachment #1) for FFATA reporting which outlines steps for collecting subrecipient data, preparing reports, and submitting reports within the required time frames. In addition, Cal OES enhanced its existing FFATA reporting procedures using a software platform to provide accurate data reports for federally funded grant projects. These reports are then used to ensure accurate reporting and timely updates to existing FFATA records. To ensure clear assignment of accountability, Cal OES FAB analysts are responsible for completing and submitting FFATA reporting accurately, with all required fields completed, and obtaining review and approval from their respective peer reviewer analysts and managers to verify accuracy and completeness. Furthermore, in June of 2025, Cal OES FAB staff were provided with a comprehensive FFATA training course to ensure staff understand the process and reporting requirements for FFATA (Attachment #2). Cal OES continues to provide training for staff responsible for submitting FFATA reports during onboarding and on an as-needed basis. Because the revised FFATA reporting procedures were not fully implemented by the close of Fiscal Year 2024-2025, Cal OES was not able to capture all projects concluding the reporting cycle. Moreover, the procedures have been fully implemented and in effect since the start of Fiscal Year 2025-2026. Estimated Implementation Date: Implemented Contact: - Heidi Palchik, Chief, Recovery Financial Administration Branch lnteragency, Recovery Coordination Section

View Audit 408731

Finding 1226083 (2025-024)

Material Weakness 2025

State of California

CA

Allowable Costs / Cost Principles Period of Performance Subrecipient Monitoring § 200.303 § 200.77

Period of Performance California Governor’s Office of Emergency Services In July of 2024, Cal OES implemented EMPOWER, a new electronic time reporting system. EMPOWER captures employees' daily time worked, and activities identified with service locations (funding code) by cost category. The establis...

Period of Performance California Governor’s Office of Emergency Services In July of 2024, Cal OES implemented EMPOWER, a new electronic time reporting system. EMPOWER captures employees' daily time worked, and activities identified with service locations (funding code) by cost category. The established EMPOWER Standard Operating Procedure instructs Cal OES Administrative Services staff on how to set the service location incident period start date, which creates system controls to not allow any activities to be entered prior to the start date. To address the transaction identified by CLA and prevent recurrence, Cal OES is troubleshooting and testing potential solutions to develop a systematic fix in EMPOWER. In addition, Cal OES will provide refresher training for all first-line managers to improve their oversight of funding codes and cost categories and ensure their staff submit time entries accordingly. Cal OES Administrative Services will also integrate a resource checklist into its monthly pre-labor review and posting process to add an extra layer of transaction oversight. Currently, Cal OES Administrative Services reviews and reconciles all cost category claims and supporting documentation before submitting to FEMA for obligation. This continuous review ensures Cal OES flags and corrects ineligible or out-of-period transactions before requesting reimbursement. Furthermore, Cal OES will review and correct the identified transaction. Estimated Implementation Date: October 2026 Contact: - Mary Rucker, Assistant Director Administrative Services, Finance & Logistics Administration

View Audit 408731

Corrective Action Plans

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