Corrective Action Plans

Finding 1225490 (2025-003)

Material Weakness 2025

TN

Subrecipient Monitoring § 200.332

Action Taken/Planned: Management acknowledges the deficiencies identified in subrecipient monitoring controls during FY25. These deficiencies occurred during a period of substantial growth in the College's sponsored programs portfolio, organizational restructuring, staffing constraints, and continue...

Action Taken/Planned: Management acknowledges the deficiencies identified in subrecipient monitoring controls during FY25. These deficiencies occurred during a period of substantial growth in the College's sponsored programs portfolio, organizational restructuring, staffing constraints, and continued refinement of grants administration processes. In response, the College implemented a comprehensive transformation of its grants management framework during FY26. Corrective actions include establishment of the Unified Grants Hub, creation of a dedicated Subaward Manager position, addition of specialized post-award personnel, establishment of a Grants Management Task Force, implementation of formalized subrecipient monitoring procedures and documentation requirements, expansion of grants management training, enhanced coordination among Finance, Research Administration, Compliance, Budget, and Treasury functions, and deployment of Power BI reporting tools to strengthen oversight and compliance monitoring. Anticipated Completion Date/Date Completed: The majority of corrective actions were implemented during FY2026. The Unified Grants Hub, staffing enhancements, Grants Management Task Force, and enhanced monitoring procedures were operational as of June 30, 2026. Ongoing monitoring and compliance reviews will continue thereafter.

View Audit 408355

Finding 1225399 (2025-002)

Material Weakness 2025

H.O.P.E. HELPING OURSELVES PREVENT EMERGENCIES

AK

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

Criteria: The objective of the Assistance Listing 93.912 is to improve services for substance use disorder (SUD) and opioid use disorder (OUD) through prevention, treatment, and recovery services. Management is responsible for establishing and maintaining internal controls, including formal policies...

Criteria: The objective of the Assistance Listing 93.912 is to improve services for substance use disorder (SUD) and opioid use disorder (OUD) through prevention, treatment, and recovery services. Management is responsible for establishing and maintaining internal controls, including formal policies and procedures for the review and approval of journal entries, adjustments to expenditures, and account reconciliations, to ensure expenditures reported to granting agencies are complete, accurate, allowable, and properly supported. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Containment -Once we were made aware of this finding through the audit, we began thinking of the most efficient way to document the Board’s knowledge and approvals of journal entries, including adjustments to expenditures and account reconciliations. Root Cause -HOPE is currently revising all policies and procedures. This was HOPE’s first federal single audit, so once we heard of the finding we prioritized revisions of fiscal policies and procedures to address the finding. Action Taken- The first board meeting after learning of this finding will be held on July 27th, 2026. Beginning with that meeting, the Board’s approval of the statement of activity detail, consisting of all charges and journal entries entered into HOPE’s accounting system since the date of the last Board meeting, will be approved via motion and seconded and noted as such in the Board meeting minutes. Most journal entries made during the month are currently entered into the system by HOPE’s CPA. The remaining journal entries are entered by HOPE’s Executive Director. To ensure that the Board is aware of the adjustments made in the system, all journal entries made since the last Board meeting will be approved via a motion and a second as a separate agenda item to ensure that the Board is reviewing these items particularly. All approvals will be noted in the Board meeting minutes. The list of journal entries viewed during the meeting will be initialed by a Board member and kept on file as documentation of internal controls.

View Audit 408352

Finding 1225398 (2025-001)

Material Weakness 2025

H.O.P.E. HELPING OURSELVES PREVENT EMERGENCIES

AK

Procurement, Suspension & Debarment Allowable Costs / Cost Principles

Criteria: The objective of Assistance Listing 93.912, Rural Healthcare Services Programs, is to improve access to and delivery of rural health care services, including prevention, treatment, and recovery services. The Organization’s fiscal policies require expenditures to be approved in advance to e...

Criteria: The objective of Assistance Listing 93.912, Rural Healthcare Services Programs, is to improve access to and delivery of rural health care services, including prevention, treatment, and recovery services. The Organization’s fiscal policies require expenditures to be approved in advance to ensure adequate financial resources are available. The policies also require all checks to include two signatures, one of which must be an authorized Board member; purchases of non-expendable personal property and other purchases or contracts exceeding $5,000 to be supported by three competitive quotes; and all nonrecurring expenditures to be approved at least monthly. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Containment - Once we were made aware of this finding through the audit, we determined that we need to find a more effective way to document the Board’s knowledge and approvals of expenditures. Root Cause -HOPE is currently revising all policies and procedures. This was HOPE’s first federal single audit, so once we heard of the finding we prioritized revisions of fiscal policies and procedures to address the finding. Action Taken- The first board meeting after learning of this finding will be held on July 27th, 2026. Beginning with that meeting, the Board’s approval of the Statement of Activity Detail, consisting of all charges and journal entries entered into HOPE’s accounting system since the date of the last Board meeting, will be approved via motion and seconded and noted as such in the Board meeting minutes.

View Audit 408352

Finding 1225393 (2025-001)

Material Weakness 2025

NORTHERN ELECTRIC COOPERATIVE, INC.

SD

Reporting Material Weakness

Federal Agency Name: Department of Homeland Security Pass-Through Entity: State of South Dakota Office of Emergency Management Assistance Listing Number: 97.039 Program Name: Hazard Mitigation Grant Program Finding Summary: The Association does not have an internal control system designed to provide...

Federal Agency Name: Department of Homeland Security Pass-Through Entity: State of South Dakota Office of Emergency Management Assistance Listing Number: 97.039 Program Name: Hazard Mitigation Grant Program Finding Summary: The Association does not have an internal control system designed to provide for a complete and accurate schedule of federal expenditures of federal awards being audited. As auditors, we were requested to assist with the preparation of the schedule and accompanying notes to the schedule. Corrective Action Plan: It is not cost effective to have an internal control system designed to provide for the preparation of the schedule of federal expenditures of federal awards and the accompanying notes to the schedule. We requested that our auditors, Eide Bailly, LLP, prepare the schedule and accompanying notes. We have designated a member of management to review the drafted schedule and accompanying notes to the schedule. Responsible Individuals: Char Hager, CEO Anticipated Completion Date: Ongoing

View Audit 408347

Finding 1225392 (2025-003)

Material Weakness 2025

Harrington Family Health Center

ME

Special Tests & Provisions Questioned Costs Subrecipient Monitoring

Finding: 2025-003 Condition Found: During testing of a statistically valid sample of 19 patient accounts that received sliding fee discounts, 2 patient files did not contain eligibility documentation to support that the patients qualified for the sliding fee discount at the time the discount was app...

Finding: 2025-003 Condition Found: During testing of a statistically valid sample of 19 patient accounts that received sliding fee discounts, 2 patient files did not contain eligibility documentation to support that the patients qualified for the sliding fee discount at the time the discount was applied Individual(s) Responsible for Corrective Action: Chief Executive Officer, Fractional CFO, Billing Team Planned Corrective Action: The Organization revised its sliding fee discount policies, implemented centralized documentation tracking, and enhanced staff training related to eligibility determination and documentation requirements. Monitoring procedures, including periodic supervisory review, were established to ensure compliance. Anticipated Completion Date: Implemented and in progress. Due to the timing of the prior year’s audit completion, the Organization did not have time to complete a full monitoring cycle prior to audit testing.

View Audit 408346

Finding 1225391 (2025-002)

Material Weakness 2025

Harrington Family Health Center

ME

Internal Control / Segregation of Duties Questioned Costs Subrecipient Monitoring § 200.512

Finding: 2025-002 Condition Found: The FAC filing for the fiscal year ended March 31, 2025, was submitted late. Individual(s) Responsible for Corrective Action: Chief Executive Officer, Fractional CFO, Board of Directors Planned Corrective Action: Management agrees with the finding. Due to the timin...

Finding: 2025-002 Condition Found: The FAC filing for the fiscal year ended March 31, 2025, was submitted late. Individual(s) Responsible for Corrective Action: Chief Executive Officer, Fractional CFO, Board of Directors Planned Corrective Action: Management agrees with the finding. Due to the timing of prior year audit completion and associated late filing, the Organization did not have sufficient time within the current audit period to fully implement and demonstrate the effectiveness of corrective actions related to audit timeliness. As a result, this finding has reoccurred. The Organization has strengthened oversight by formalizing a compliance calendar, assigning clear ownership of Single Audit and Federal Audit Clearinghouse deadlines, and incorporating milestone tracking into finance operations and executive oversight processes. In addition, continued fractional CFO support provides enhanced accountability and monitoring of financial reporting timelines. These actions build upon prior year corrective efforts and are designed to ensure timely and compliant filings going forward. Anticipated Completion Date: FY2026 filing cycle.

View Audit 408346

Finding 1225388 (2025-002)

Material Weakness 2025

Clermont County

OH

Subrecipient Monitoring Reporting § 200.414 § 200.502 § 200.510

DJFS will begin to use project numbers to allow for an additional check of all amounts reported. DJFS is also going to provide federal grant information to the Auditor’s office as soon as they complete their final report in order to give the Auditor’s office adequate time to review the information w...

DJFS will begin to use project numbers to allow for an additional check of all amounts reported. DJFS is also going to provide federal grant information to the Auditor’s office as soon as they complete their final report in order to give the Auditor’s office adequate time to review the information with MUNIS and will afford the Auditor’s office more time to compile the SEFA and have a secondary review to avoid any computational or clerical errors.

View Audit 408340

Finding 1225373 (2025-001)

Material Weakness 2025

Southwest Arkansas Planning and Development District, Inc.

AR

See table on page 26.

View Audit 408338

Finding 1225358 (2025-001)

Material Weakness 2025

American Bird Conservancy

VA

Questioned Costs Reporting Significant Deficiency § 200.328

SF-425 Reporting Planned Corrective Action: American Bird Conservancy will prepare, review and maintain documented comparison of general ledger details to the SF-425 reports prepared. Person Responsible for Corrective Action Plan: Angela Modrick, Vice President of Finance Anticipated Date of Complet...

SF-425 Reporting Planned Corrective Action: American Bird Conservancy will prepare, review and maintain documented comparison of general ledger details to the SF-425 reports prepared. Person Responsible for Corrective Action Plan: Angela Modrick, Vice President of Finance Anticipated Date of Completion: Implemented

View Audit 408337

Finding 1225357 (2025-004)

Material Weakness 2025

Gallaudet University

DC

Student Financial Aid

FINDING 2025-004 Internal Control over Compliance and Compliance with Special Tests and Provisions – NSLDS Reporting (Material Weakness and Material Noncompliance) Responsive to finding: We agree with the finding. Corrective Action Plan: Gallaudet University will continue to enhance its procedures f...

FINDING 2025-004 Internal Control over Compliance and Compliance with Special Tests and Provisions – NSLDS Reporting (Material Weakness and Material Noncompliance) Responsive to finding: We agree with the finding. Corrective Action Plan: Gallaudet University will continue to enhance its procedures for identifying, monitoring, reviewing, and reporting student enrollment status changes to the National Student Loan Data System (NSLDS) to help ensure that enrollment information is submitted accurately and within required timeframes. • Continue to refine NSLDS reporting procedures to ensure that enrollment status changes, including graduations, withdrawals, and changes in enrollment status, are appropriately identified and reported in accordance with federal requirements. • Enhance system-generated reporting and validation procedures associated with the University’s enterprise planning system to help ensure that all students with enrollment status changes are captured in NSLDS reporting files. • Continue to strengthen reconciliation procedures by comparing enrollment status changes recorded in student records to information included in NSLDS reporting submissions and investigating any discrepancies identified. • Enhance supervisory review procedures to verify the completeness, accuracy, and timeliness of NSLDS enrollment reporting prior to submission. • Conduct periodic monitoring of enrollment reporting processes and submission timeliness to verify compliance with federal reporting requirements and identify opportunities for continuous improvement. These corrective actions will further strengthen the University's internal controls over NSLDS reporting and help ensure compliance federal reporting requirements and identify opportunities for continuous improvement. Individual(s) Responsible for Corrective Action Plan: Amanda Jackson, Director of Financial Aid Elice Patterson, Registrar Estimated Completion Date: Immediate

View Audit 408332

Finding 1225352 (2025-003)

Material Weakness 2025

Gallaudet University

DC

Student Financial Aid

FINDING 2025-003 Internal Control over Compliance and Compliance with Reporting (Significant Deficiency and Noncompliance) Responsive to finding: We agree with the finding. Corrective Action Plan: Gallaudet University will continue to enhance its procedures for the preparation, reconciliation, revie...

FINDING 2025-003 Internal Control over Compliance and Compliance with Reporting (Significant Deficiency and Noncompliance) Responsive to finding: We agree with the finding. Corrective Action Plan: Gallaudet University will continue to enhance its procedures for the preparation, reconciliation, review, and retention of supporting documentation related to the Fiscal operations Report and Application to Participate (FISAP) to ensure that all reported information is complete, accurate, adequately supported, and retained in accordance with federal requirements. The University will implement the following corrective actions: • Continue to refine FISAP preparation procedures by clearly identifying the source reports, calculations, reconciliations, review requirements, and supporting documentation necessary for key reporting line items to promote consistency, accuracy, and supportability of reported information. • Enhance documentation retention practices by maintaining a centralized electronic repository for FISAP-related source reports, supporting schedules, reconciliations, calculations, and review documentation to ensure supporting records are readily available for review and audit purposes. • Continue to strengthen reconciliation procedures by requiring documented reconciliation of key FISAP data elements, including Pell Grant expenditures, tuition and fee information, eligible applicant data, and campus-based program expenditures, to supporting financial aid records, federal reporting records, and the general ledger prior to submission. • Enhance supervisory review procedures to verify the completeness, accuracy, and supportability of information reported in the FISAP before certification and submission to the U.S. Department of Education. • Conduct periodic monitoring of FISAP preparation and documentation retention practices to verify compliance with established procedures and identify opportunities for continuous improvement. These corrective actions will further strengthen the University's internal controls over federal reporting and help ensure ongoing compliance with FISAP reporting requirements and documentation retention standards. Individual(s) Responsible for Corrective Action Plan: Amanda Jackson, Director of Financial Aid John Skjeveland, Controller Estimated Completion Date: September 30, 2026

View Audit 408332

Finding 1225349 (2025-002)

Material Weakness 2025

Gallaudet University

DC

Procurement, Suspension & Debarment § 200.317 § 200.320 § 200.327

FINDING 2025-002 Internal Control over Compliance and Compliance with Procurement, Suspension and Debarment (Significant Deficiency and Noncompliance) Responsive to finding: We agree with the finding. Corrective Action Plan: Gallaudet University will enhance its procurement procedures to ensure that...

FINDING 2025-002 Internal Control over Compliance and Compliance with Procurement, Suspension and Debarment (Significant Deficiency and Noncompliance) Responsive to finding: We agree with the finding. Corrective Action Plan: Gallaudet University will enhance its procurement procedures to ensure that price reasonableness analyses are performed and documented prior to entering into agreements with vendors in accordance with Uniform Guidance procurement requirements. The University will implement the following corrective actions: • Continue to monitor and review procurement policies and procedures for changes in applicable federal requirements and institutional practices. Procurement policies, procedures, and related documentation tools will be updated as necessary, and the standardized procurement checklist will be periodically reviewed and revised to ensure alignment with current procurement policies and Uniform Guidance standards. • Require supervisory review of procurement transactions to ensure all required procurement documentation, including price reasonableness determinations, is completed and retained prior to final approval of vendor agreements. • Provide training to procurement and departmental personnel involved in federally funded procurements regarding Uniform Guidance requirements and documentation standards. • Conduct periodic monitoring of procurement files to verify ongoing compliance with procurement policies, procedures, checklist requirements, and applicable federal regulations. These corrective actions will strengthen the University's internal controls over procurement activities and help ensure compliance with Uniform Guidance requirements related to procurement documentation and vendor selection. Individual(s) Responsible for Corrective Action Plan: Randi Vandegrift, Strategic Sourcing Manager John Skjeveland, Controller Estimated Completion Date: September 30, 2026

View Audit 408332

Finding 1225302 (2025-001)

Material Weakness 2025

Gallaudet University

DC

Questioned Costs Reporting Significant Deficiency

FINDING 2025-001 Internal Control over Compliance and Compliance with Reporting (Significant Deficiency and Noncompliance) Responsive to finding: We agree with the finding. Corrective Action Plan: Gallaudet University will strengthen its procedures for collecting, maintaining, retaining, and reviewi...

FINDING 2025-001 Internal Control over Compliance and Compliance with Reporting (Significant Deficiency and Noncompliance) Responsive to finding: We agree with the finding. Corrective Action Plan: Gallaudet University will strengthen its procedures for collecting, maintaining, retaining, and reviewing supporting documentation for performance metrics reported to the U.S. Department of Education. Going forward, every reported metric will be supported by source documentation that is retained, readily accessible, and available for review upon request. The University will implement the following corrective actions: • Develop and document procedures identifying the source documentation required to support each reported performance metric. • Establish a centralized electronic repository for performance-metric documentation. Staff submitting a metric write-up will be required to submit the associated raw data file with it, so the source documentation is captured at the point of submission rather than reconstructed later. • Implement a review process requiring verification of supporting documentation prior to submission of reports. • Provide training to personnel responsible for collecting, compiling, and reporting performance metrics regarding documentation and record-retention requirements. • Periodically review supporting documentation to ensure compliance with Department of Education reporting requirements and federal record-retention standards. Together, these actions will address the documentation gap identified in the finding and establish a sustainable process to support future reporting cycles. Individual(s) Responsible for Corrective Action Plan: Caroline Kobek Pezzarossi, Dean of Curriculum, Outreach, Resources and Effectiveness Khadijat Rashid, Provost Estimated Completion Date: September 30, 2026

View Audit 408332

Finding 1225300 (2025-001)

Material Weakness 2025

Monroe County Board of Education

GA

School Nutrition Programs Subrecipient Monitoring § 200.303

FS 2025-001 Internal Controls at the Central Office Internal Control Impact: Significant Deficiency Repeat of Prior Year Finding: FS 2024-001, FS 2023-001 Description: The School District's accounting procedures at the Central Office are not sufficient to ensure prevention or timely detection of err...

FS 2025-001 Internal Controls at the Central Office Internal Control Impact: Significant Deficiency Repeat of Prior Year Finding: FS 2024-001, FS 2023-001 Description: The School District's accounting procedures at the Central Office are not sufficient to ensure prevention or timely detection of errors in key financial processes, specifically those related to journal entries, cash management, capital asset tracking, and payroll processing. Corrective Action Plans: Journal Entries - All journal entries will be printed out, which show the preparer, reviewer and filed in numerical order beginning with FY26. Cash and Cash Equivalents - All bank balances are reconciled to the financial statements and are signed and dated by both preparer and reviewer. Monthly School Bookkeeper meetings are being held to ensure that all school level accounts are reconciled as well. Capital Assets - A complete physical inventory including bus titles will be completed in August of 2026. Employee Compensation - SHBP invoices starting with January 2026 have been reconciled to payroll and benefit records prior to payment and any corrections needed have been submitted to SHBP. Estimated Completion Date: January 1, 2026 Contact Person: Chris Johnson, Director of Financial Services Telephone: 478-994-2031 Email: chrisJohnson@mcschools.org

View Audit 408330

Finding 1225273 (2025-002)

Material Weakness 2025

Windrose Health Network, INC

IN

Management concurs and will refine the sliding fee process. Additional training will be provided to ensure staff are equipped to monitor documentation timelines and apply discounts accordingly, and policy revisions will be considered to reflect current operational practices. Internal reviews will be...

Management concurs and will refine the sliding fee process. Additional training will be provided to ensure staff are equipped to monitor documentation timelines and apply discounts accordingly, and policy revisions will be considered to reflect current operational practices. Internal reviews will be conducted periodically to support consistent application across WindRose.

View Audit 408320

Finding 1225272 (2025-010)

Material Weakness 2025

MCCONE COUNTY

MT

Procurement, Suspension & Debarment Subrecipient Monitoring

NONCOMPLIANCE WITH GRANT TERMS AND CONDITIONS, COMMUNITY DEVELOPMENT BLOCK GRANTS/STATES PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII, AL No. 14.228, GRANT No. MT-CDBG-CV-22-05, YEAR ENDED JUNE 30, 2025 Name of contact person: County Commissioners Corrective Action: The county will work with all fut...

NONCOMPLIANCE WITH GRANT TERMS AND CONDITIONS, COMMUNITY DEVELOPMENT BLOCK GRANTS/STATES PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII, AL No. 14.228, GRANT No. MT-CDBG-CV-22-05, YEAR ENDED JUNE 30, 2025 Name of contact person: County Commissioners Corrective Action: The county will work with all future entities on grants by ensuring every entity is not debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in the contract by any government or agency or otherwise ineligible for participation in Federal assistance programs. The county will request written verification that any entity is eligible to participate and receive grant funding. The county will also use state and federal resources to ensure each entity can participate. Proposed Completion Date: Immediately

View Audit 408316

Finding 1225271 (2025-001)

Material Weakness 2025

Sangamon Valley Public Water District

IL

Subrecipient Monitoring Cash Management

1. Employee overseeing the deposits and disbursements has been removed from the position. 2. Write a cash management policy and procedures for receipt and disbursement of funds as well as a monitoring process for receipts (federal funds, grants) that need to be disbursed in a timely manner for Board...

1. Employee overseeing the deposits and disbursements has been removed from the position. 2. Write a cash management policy and procedures for receipt and disbursement of funds as well as a monitoring process for receipts (federal funds, grants) that need to be disbursed in a timely manner for Board approval.

View Audit 408314

Finding 1225270 (2025-005)

Material Weakness 2025

Henry C. Nevins Home, Inc.

MA

HUD Housing Programs Internal Control / Segregation of Duties Special Tests & Provisions

Federal Award Finding 2025-005 - Material Weakness, Material Non-Compliance - Special Tests and Provisions, Surplus Cash and Distributions to Owners or Affiliates Finding: During the fiscal year ended December 31, 2025, project management did not prepare or document a surplus cash calculation in acc...

Federal Award Finding 2025-005 - Material Weakness, Material Non-Compliance - Special Tests and Provisions, Surplus Cash and Distributions to Owners or Affiliates Finding: During the fiscal year ended December 31, 2025, project management did not prepare or document a surplus cash calculation in accordance with HUD requirements, nor did management implement controls to review, approve, or retain documentation supporting the required calculation. Recommendation: Management should establish and implement formal policies and procedures to ensure that surplus cash is independently calculated in accordance with HUD requirements and the applicable HUD Regulatory Agreement. Such procedures should include preparation of a documented surplus cash calculation at each required reporting period using HUD-prescribed criteria; Independent review and approval of the surplus cash calculation by appropriate management personnel or, where applicable, the court-appointed receiver; and retention of supporting documentation sufficient to demonstrate compliance with HUD restrictions on the use and distribution of project funds. Management should coordinate with the court-appointed receiver and HUD to ensure that surplus cash determinations are performed consistently and in compliance with program requirements going forward. Action Taken: Management acknowledges the finding related to the absence of an independently prepared and documented surplus cash calculation. During the fiscal year ended December 31, 2025, the Organization operated in an environment of financial distress, limited staffing resources, and evolving oversight responsibilities, which contributed to informal and undocumented procedures related to surplus cash determinations. As disclosed in the financial statements, the Organization became subject to a court-appointed receivership. Following the appointment of the receiver, responsibility for financial oversight, including compliance with HUD cash flow and surplus cash requirements, has transitioned to the receiver in coordination with HUD. The receiver and management are evaluating HUD requirements related to surplus cash calculation. Responsible Person: Paul Valentine, Receiver Target Completion Date: September 30, 2026 Status: Not started

View Audit 408309

Finding 1225268 (2025-004)

Material Weakness 2025

Henry C. Nevins Home, Inc.

MA

HUD Housing Programs Questioned Costs Special Tests & Provisions

Federal Award Finding 2025-004 - Material Weakness, Material Noncompliance - Special Tests and Provisions, Cash Receipts Finding: The Organization maintained cash balances in excess of federally insured limits in financial institutions that did not meet HUD's minimum GNMA rating requirements. Recomm...

Federal Award Finding 2025-004 - Material Weakness, Material Noncompliance - Special Tests and Provisions, Cash Receipts Finding: The Organization maintained cash balances in excess of federally insured limits in financial institutions that did not meet HUD's minimum GNMA rating requirements. Recommendation: The Organization should transfer excess cash balances to financial institutions that meet HUD's GNMA rating requirements or otherwise structure its cash holdings to ensure compliance with federal insurance limits and HUD custodial requirements. Action Taken: Nevins moved to this financial institution with the first HUD loan in 2015. This is a local bank that actively supports Nevin's mission in the community. Given Nevins’ current financial struggles, the balance in the bank seldom exceeds the $250,000 threshold. In addition, the receiver established its own account with East West Bank and was in the process of fully transitioning the operating account to East West Bank at the end of the fiscal year. Responsible Person: Paul Valentine, Receiver Target Completion Date: September 30, 2026 Status: Not started

View Audit 408309

Finding 1225266 (2025-003)

Material Weakness 2025

Henry C. Nevins Home, Inc.

MA

HUD Housing Programs Questioned Costs Special Tests & Provisions

Federal Award Finding 2025-003 - Material Weakness, Material Noncompliance - Special Tests and Provisions, Mortgage Reserve Fund, Equipment Replacement Reserve Fund, and Special Escrows Finding: During the audit period, Henry C. Nevins Home, Inc. did not make all required deposits into the reserve f...

Federal Award Finding 2025-003 - Material Weakness, Material Noncompliance - Special Tests and Provisions, Mortgage Reserve Fund, Equipment Replacement Reserve Fund, and Special Escrows Finding: During the audit period, Henry C. Nevins Home, Inc. did not make all required deposits into the reserve for replacement fund in accordance with the terms of the applicable HUD Regulatory Agreement. The required monthly reserve deposits were either not made or were made in amounts less than those required. Recommendation: We recommend that Henry C. Nevins Home, Inc., in coordination with the court-appointed receiver and HUD, establish procedures to ensure that reserve for replacement deposits are made timely and in accordance with the HUD Regulatory Agreement, or that appropriate waivers or modifications are obtained from HUD where compliance is not currently feasible. Action Taken: Management acknowledges the audit finding related to the failure to make required deposits into the reserve for replacement fund in accordance with the HUD Regulatory Agreement. As disclosed in the notes to the financial statements, during the audit period the Organization was subject to a court-appointed receivership effective September 12, 2025 and is in default under its HUD-insured mortgages. As part of the receivership, control over substantially all cash management and financial decision-making activities was assumed by the court-appointed receiver. Management believes that the conditions giving rise to this finding are directly related to liquidity constraints. Given the complexities of the receivership and regulatory environment, a specific timeline for remediation is not able to be determined. As a result of the loan default, the mortgage was assigned to the U.S. Department of Housing and Urban Development. Since the appointment of the Receiver, responsibility for cash management, financial oversight, and debt service planning has transitioned to the Receiver. The Receiver and the Organization are actively evaluating available options to address the loan default which includes marketing the Organization for a sale. Interim corrective actions include enhanced cashflow monitoring, prioritization of expenses required to continue operations, and ongoing communication with HUD regarding the sale process. Management believes that these actions will address the conditions identified and result in the satisfaction of the HUD loan. Responsible Person: Paul Valentine, Receiver Target Completion Date: September 30, 2026 Status: In process

View Audit 408309

Finding 1225265 (2025-002)

Material Weakness 2025

Henry C. Nevins Home, Inc.

MA

HUD Housing Programs Questioned Costs Special Tests & Provisions

Federal Award Finding 2025-002 - Material Weakness, Material Noncompliance - Special Tests and Provisions, Mortgage Status and Reserve for Replacements Finding: During the fiscal year, the Organization experienced ongoing financial distress and declining liquidity, which adversely affected its abili...

Federal Award Finding 2025-002 - Material Weakness, Material Noncompliance - Special Tests and Provisions, Mortgage Status and Reserve for Replacements Finding: During the fiscal year, the Organization experienced ongoing financial distress and declining liquidity, which adversely affected its ability to meet financial obligations as they became due. As a result, mortgage payments, including required principal, interest, mortgage insurance premiums, and escrow deposits, were not made in accordance with the loan and regulatory agreements. As of December 31, 2025, delinquent amounts totaled approximately $978 thousand. Recommendation: The Receiver and the Organization should work with HUD to develop and implement a formal workout or resolution plan, including enhanced cash-flow monitoring and debt service planning, to address the loan default and restore compliance with HUD debt service requirements. Action Taken: Management acknowledges the finding related to the failure to make required debt service payments under the HUD Section 232 and Section 241(a) insured mortgage loan agreements. The Organization experienced significant financial distress and constrained liquidity during the fiscal year, which limited its ability to remit required principal, interest, mortgage insurance premium, and escrow payments as they became due. As a result of the loan default, the mortgage was assigned to the U.S. Department of Housing and Urban Development. With the appointment of a Receiver over the Organization, responsibility for cash management, financial oversight, and debt service planning has transitioned to the Receiver. The Receiver is marketing the facility towards a sale in order to satisfy the outstanding loan balance with HUD. Interim corrective actions include enhanced cash-flow monitoring, prioritization of operational suppliers, and ongoing communication with HUD regarding the project's financial condition and sale status. Management believes that these actions will support progress towards stabilization and marketability of the Organization. Responsible Person: Paul Valentine, Receiver Target Completion Date: September 30, 2026 Status: In process

View Audit 408309

Finding 1225263 (2025-004)

Material Weakness 2025

Easter Seals of Greater Houston, Inc.

TX

Allowable Costs / Cost Principles Cash Management Matching / Level of Effort / Earmarking

Management has provided a template, which was reviewed and approved by the CFO in April 2026, to the AP Clerk without any roundings of the allocation percentages. Management will review the calculations between January 1 and April 2026 that were used for allocations and will correct any allocations ...

Management has provided a template, which was reviewed and approved by the CFO in April 2026, to the AP Clerk without any roundings of the allocation percentages. Management will review the calculations between January 1 and April 2026 that were used for allocations and will correct any allocations as necessary. Management will ensure the review of expenses include all calculations supporting the expense amounts. All these actions are effective January 1, 2026, and will be managed by the Chief Financial Officer.

View Audit 408306

Finding 1225261 (2025-001)

Material Weakness 2025

Transcen, Inc.

MD

Subrecipient Monitoring Reporting

Finding (2025-001): TransCen did not consistently ensure that FFATA reporting requirements for applicable federal subawards were completed accurately and/or within required timeframes. Corrective Action: TransCen has established procedures to support FFATA compliance. Corrective actions focus on rei...

Finding (2025-001): TransCen did not consistently ensure that FFATA reporting requirements for applicable federal subawards were completed accurately and/or within required timeframes. Corrective Action: TransCen has established procedures to support FFATA compliance. Corrective actions focus on reinforcing consistent application of these procedures and strengthening oversight. • Responsibility & Oversight: Grants and Contracts Manager will serve as FFATA Compliance Coordinator. Accounting will perform a secondary review to confirm timely and accurate reporting. • Standardized Procedures: Existing procedures will be formalized to include identification of reportable subawards, required data elements, and reporting deadlines. • Checklist & Tracking: A FFATA checklist will be used during subaward issuance, and a centralized tracking log will monitor reporting status, due dates, and completion. • Training: Staff involved in grants administration will receive targeted FFATA training and periodic refreshers. • Ongoing Monitoring: Management will perform quarterly reviews of subawards to ensure compliance and address any exceptions in a timely manner. Implementation Timeline: Effective immediately, fully implemented by August 1, 2026 Responsible Official: Ann Deschamps, Mid Atlantic ADA Director Management Oversight: Laura Owens, President

View Audit 408304

Finding 1225253 (2025-002)

Material Weakness 2025

Sherburne County

MN

Questioned Costs Material Weakness Internal Control / Segregation of Duties

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Number: 93.778 Federal Award Identification Number and Year: S2505MN5ADM - 2025 Award Period: 2025 Type of Finding: • Material Weakness in Internal Control over Compliance Recomme...

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Number: 93.778 Federal Award Identification Number and Year: S2505MN5ADM - 2025 Award Period: 2025 Type of Finding: • Material Weakness in Internal Control over Compliance Recommendation: CLA recommend that the County implement sufficient internal control procedures to ensure properly documented review of all reports. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will implement the recommendation immediately. Name of the contact person responsible for corrective action plan: Loraine Rupp, Sherburne County Auditor-Treasurer Planned completion date for corrective action plan: Already corrected

View Audit 408288

Finding 1225252 (2025-001)

Material Weakness 2025

Sherburne County

MN

Questioned Costs Significant Deficiency Internal Control / Segregation of Duties

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Number: 93.778 Federal Award Identification Number and Year: S2505MN5ADM - 2025 Award Period: 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance • ...

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Number: 93.778 Federal Award Identification Number and Year: S2505MN5ADM - 2025 Award Period: 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Recommendation: CLA recommend that the County implement sufficient internal control procedures to ensure LCTS payments are made within 30 days of receipt. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will implement the recommendation immediately. Name of the contact person responsible for corrective action plan: Loraine Rupp, Sherburne County Auditor-Treasurer Planned completion date for corrective action plan: Already corrected

View Audit 408288

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