Corrective Action Plans

Finding 1224629 (2025-001)

Material Weakness 2025

CA

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

Management Response: Management agrees with the finding. The reporting package and Data Collection Form were not submitted by the required deadline. While the delay was primarily the result of significant staffing shortages within the Finance Department during the reporting period, management recogn...

Management Response: Management agrees with the finding. The reporting package and Data Collection Form were not submitted by the required deadline. While the delay was primarily the result of significant staffing shortages within the Finance Department during the reporting period, management recognizes that it remained the City's responsibility to ensure timely compliance with federal reporting requirements. To address this issue, the City will implement a formal tracking process for all federal reporting requirements, maintain a compliance calendar, clearly assign responsibility for monitoring submission deadlines, and require management review prior to submission. These procedures are expected to strengthen internal controls, improve oversight of compliance deadlines, and ensure timely submission of future reporting packages in accordance with Uniform Guidance requirements. Anticipated Completion Date: 06/30/2026 Responsible Person: Mandy Kellogg, Administrative Services Director

View Audit 407888

Finding 1224628 (2025-004)

Material Weakness 2025

City of Echo

OR

Internal Control / Segregation of Duties

Lack of Segregation of Duties Condition Found: The City has a limited number of office personnel, which prevents an ideal segregation of duties for controls over financial reporting. Planned Corrective Action: Due to limited staffing, the City is unable to fully segregate duties. To mitigate the ass...

Lack of Segregation of Duties Condition Found: The City has a limited number of office personnel, which prevents an ideal segregation of duties for controls over financial reporting. Planned Corrective Action: Due to limited staffing, the City is unable to fully segregate duties. To mitigate the associated risks, management, the Mayor, and the City Council will continue to provide oversight of financial activities. This includes review of financial reports, bank reconciliations, and other key accounting records. The City will also consider enhancing documentation of oversight and review procedures where feasible. Anticipated Completion Date: Ongoing – oversight activities performed throughout the fiscal year. Responsible Official: City Administrator / Finance Officer

View Audit 407886

Finding 1224627 (2025-003)

Material Weakness 2025

City of Echo

OR

Internal Control / Segregation of Duties

Finding 2025-001 & 2025-003 – Preparation of the Financial Statements Condition Found: The City does not have a system of internal controls that would enable management to conclude the financial statements and related disclosures are complete and presented in accordance with the generally accepted a...

Finding 2025-001 & 2025-003 – Preparation of the Financial Statements Condition Found: The City does not have a system of internal controls that would enable management to conclude the financial statements and related disclosures are complete and presented in accordance with the generally accepted accounting principles which could lead to material errors that may not be identified and corrected by the City. As such, management requested external auditor to prepare a draft of the financial statements, including the related footnote disclosures. Planned Corrective Action: The City will continue to rely on its external auditors to prepare the draft financial statements and related footnote disclosures due to cost and staffing considerations. Management will review the completed financial statements and disclosures provided by the auditors and accept responsibility for their accuracy and completeness prior to issuance. Anticipated Completion Date: Ongoing – implemented annually as part of the year-end financial reporting process. Responsible Official: City Administrator / Finance Officer

View Audit 407886

Finding 1224621 (2025-002)

Material Weakness 2025

City of Greenwood

IN

Procurement, Suspension & Debarment § 200.214

Subject: 2025-002 Material Weakness and Noncompliance – Procurement and Suspension and Debarment (Repeat Finding 2024-002) Federal Agency: Department of the Treasury Federal Program: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Compliance Requirement: Procureme...

Subject: 2025-002 Material Weakness and Noncompliance – Procurement and Suspension and Debarment (Repeat Finding 2024-002) Federal Agency: Department of the Treasury Federal Program: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Compliance Requirement: Procurement and Suspension and Debarment Audit Finding: Material Weakness and Noncompliance – Procurement and Suspension and Debarment Recommendation: We recommend the City ensure suspension and debarment checks are performed on all CSLFRF transactions prior to payment to new vendors and documented appropriately. Planned Corrective Action: The City agreed with the recommendation and plans to implement corrective action plan by December 31, 2026. City staff are in the process of updating internal policies to ensure that suspension and debarment checks are performed on all CSLFRF transactions prior to payment to vendors and documented appropriately.

View Audit 407860

Finding 1224600 (2025-001)

Material Weakness 2025

City of Cleveland

OH

Reporting § 200.329

The Department of Community Development will implement the following corrective measures using existing systems, including exploring the capabilities of Amplifund, the City’s grant management software, to address the finding and to establish a durable compliance framework for all federal grant repor...

The Department of Community Development will implement the following corrective measures using existing systems, including exploring the capabilities of Amplifund, the City’s grant management software, to address the finding and to establish a durable compliance framework for all federal grant reporting obligations: 1. Designation of a Federal Grants Compliance Officer;2. Staff Training and Cross-Training;3. Grants Management and Reporting Calendar Reminders;4. Federal Portal Access Redundancy and Technical Escalation Protocol; and5. Internal Compliance Audits.

View Audit 407851

Finding 1224599 (2025-003)

Material Weakness 2025

Dakota County

MN

Questioned Costs Allowable Costs / Cost Principles Significant Deficiency § 200.303

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Supplemental Nutrition Assistance Program Cluster & Medical Assistance Assistance Listing Numbers: 10.561 and 93.778 Federal Award Identification Numbers and Years: 252MN101S2514 – 2025 & 2505MN5ADM – 2025 Passed Thro...

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Supplemental Nutrition Assistance Program Cluster & Medical Assistance Assistance Listing Numbers: 10.561 and 93.778 Federal Award Identification Numbers and Years: 252MN101S2514 – 2025 & 2505MN5ADM – 2025 Passed Through Entity: Minnesota Department of Human Services Pass Through Number: H55250010 & H58260061 & H55255048 Compliance Requirement: Allowable Activities Award Period: 2025 Recommendation: We recommend that the County review its procedures and control to ensure all RMS listings sent to the State properly exclude those necessary individuals no longer working in the programs. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The County will increase coordination with human resources to obtain data on employee turnover as timely as possible and also ensure that the listings are reviewed prior to submission going forward. Name of the contact person responsible for corrective action: Tiffinie Miller, Deputy Director of Employment & Economic Assistance Planned completion date for corrective action plan: December 31, 2026

View Audit 407848

Finding 1224598 (2025-002)

Material Weakness 2025

Dakota County

MN

Questioned Costs Material Weakness Reporting § 200.303

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Numbers: 93.778 Federal Award Identification Numbers and Years: 2505MN5ADM – 2025 Passed Through Entity: Minnesota Department of Human Services Pass Through Number: H55255048 Comp...

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Numbers: 93.778 Federal Award Identification Numbers and Years: 2505MN5ADM – 2025 Passed Through Entity: Minnesota Department of Human Services Pass Through Number: H55255048 Compliance Requirement: Special Provisions Award Period: 2025 Recommendation: We recommend that the County reviews its polices and controls to ensure there is a formally documented control that ensures all required training of LCTS fiscal site contacts is completed and the documentation of the completions of the training is retained. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The County will share the Minnesota DHS previously recorded “LCTS Fiscal & Cost Schedule” training video with all new Fiscal Site Contacts that prepare cost schedules. County staff will then follow-up with the new Fiscal Site Contacts with a brief quiz to ensure they watched the training video and know how to capture only applicable costs in the cost schedule reports. Then, the LCTS Training Verification Form will be completed, signed by the applicable parties, and emailed to the LCTS Project Manager at Minnesota DHS. The communications sharing the training video, responses to the brief quiz, and LCTS Training Verification Form will be maintained as documentation of the completion of the required trainings. Name of the contact person responsible for corrective action: Lucas Chase, Audit Manager Planned completion date for corrective action plan: December 31, 2026

View Audit 407848

Finding 1224595 (2025-001)

Material Weakness 2025

Dakota County

MN

Procurement, Suspension & Debarment § 200.303 § 200.320

Federal Agency: U.S. Department of Agriculture Federal Program Name: Supplemental Nutrition Assistance Program Cluster Assistance Listing Number: 10.561 Federal Award Identification Number and Year: 252MN101S2514 – 2025 Passed Through Entity: Minnesota Department of Human Services Pass Through Numbe...

Federal Agency: U.S. Department of Agriculture Federal Program Name: Supplemental Nutrition Assistance Program Cluster Assistance Listing Number: 10.561 Federal Award Identification Number and Year: 252MN101S2514 – 2025 Passed Through Entity: Minnesota Department of Human Services Pass Through Number: H55250010 and H58260061 Compliance Requirement: Procurement Award Period: 2025 Recommendation: We recommend the County follow their federal purchasing policy in all their federal programs and retain documentation of that process occurring. As necessary, the County may need to add internal controls that are specific to each program to ensure this properly occurs. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The County will continue to work with program managers to understand and adhere to federal purchasing policies. Name of the contact person responsible for corrective action: Dana DeMaster, Director of Employment & Economic Assistance Planned completion date for corrective action plan: December 31, 2026

View Audit 407848

Finding 1224593 (2025-001)

Material Weakness 2025

Honor Ehg INC

NY

Allowable Costs / Cost Principles Reporting § 200.402

The Administration of HONOR acknowledges the condition identified in the 2025 Financial Audit concerning the lack of allocation documentation. The following response outlines the steps the HONOR Administration, and Management will take to address these issues and prevent recurrence. During the 2025 ...

The Administration of HONOR acknowledges the condition identified in the 2025 Financial Audit concerning the lack of allocation documentation. The following response outlines the steps the HONOR Administration, and Management will take to address these issues and prevent recurrence. During the 2025 audit process, RBT identified the following condition: “Allocation of allowable costs were not properly documented.” HONOR Chief Financial Officer, along with the Finance Director, reviewed the condition and implemented the following corrective measure: -Ensure source documents are documented with G/L code, cost center and allocation method, if one is used. Documentation will be reviewed for completeness by the Staff Accountant. This will add an additional layer of documentation review prior to month end close. HONOR’s Chief Financial Officer along with the finance team take this audit finding seriously and are committed to strengthening internal controls to prevent future incidents. The steps outlined above will help us maintain compliance and ensure the proper use of resources. HONOR thanks RBT for their due diligence in bringing this matter to our attention.

View Audit 407847

Finding 1224592 (2025-002)

Material Weakness 2025

City of Spring Hill

TN

Allowable Costs / Cost Principles Cash Management Questioned Costs

Department of Homeland Security - Federal Emergency Management Agency (FEMA) Staffing for Adequate Fire and Emergency Response (SAFER) - CFDA No.97.083 Recommendation: The City should provide training for the grant administrator and/or include an additional review by individual that has been fully t...

Department of Homeland Security - Federal Emergency Management Agency (FEMA) Staffing for Adequate Fire and Emergency Response (SAFER) - CFDA No.97.083 Recommendation: The City should provide training for the grant administrator and/or include an additional review by individual that has been fully trained on the compliance requirements of the grant. The internal control process should include a formal way to document the review and approval of Fire Safety salary costs charged to the grant to provide evidence that internal controls are effectively designed and implemented and functioning in a timely manner throughout the year. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned and taken in response to finding: The City has authorized a full-time grants specialist position within the Finance Department to oversee the administration of grants separate from the programming department. The City will strengthen internal controls over grant compliance by implementing formal policies and procedures for allowable costs, documentation, and review. All grant expenditures will be reviewed and approved by Finance prior to submission, with supporting documentation maintained for eligibility determinations. Name(s) of the contact person(s) responsible for corrective action: Rebecca Holden Planned completion date for corrective action plan: 6/30/2026

View Audit 407845

Finding 1224591 (2025-002)

Material Weakness 2025

Wisconsin Rural Water Association, Inc.

WI

Reporting

The Organization is aware that their staff does not have a process to prepare financial statements, schedule of expenditures of federal awards, and related notes in accordance with GAAP. The Organization will continue to make this decision on a cost/benefit basis and have auditors assist in preparin...

The Organization is aware that their staff does not have a process to prepare financial statements, schedule of expenditures of federal awards, and related notes in accordance with GAAP. The Organization will continue to make this decision on a cost/benefit basis and have auditors assist in preparing the financial statements and related notes. Management does review the financial statements and the schedule of expenditures of federal awards and compares to the Organization’s financial records for completeness and accuracy and accepts responsibility for those financial statements and schedule of expenditures of federal awards.

View Audit 407844

Finding 1224584 (2025-001)

Material Weakness 2025

Wisconsin Rural Water Association, Inc.

WI

Internal Control / Segregation of Duties

The Organization is aware of the lack of segregation of duties caused by the limited size of its staff, and will continue to use other controls, where practical to compensate for this limitation.

View Audit 407844

Finding 1224577 (2025-002)

Material Weakness 2025

New England Rural Health Association

VT

Questioned Costs Allowable Costs / Cost Principles Reporting

Finding 2025-002: Financial Reports and Recognition of Grant Revenue Plan: NERHA originally contracted with a partner to provide financial services with the understanding that there were industry-standard systems and policies in place that were sufficient to manage and account for transactions from ...

Finding 2025-002: Financial Reports and Recognition of Grant Revenue Plan: NERHA originally contracted with a partner to provide financial services with the understanding that there were industry-standard systems and policies in place that were sufficient to manage and account for transactions from multiple federal and state funders. The true magnitude of the gap between the financial services provider’s financial policies and controls and NEHRA’s complex funding streams only became apparent during this audit period. The lack of financial reporting and the errors in grant invoicing (budgeted vs. actual allocations) stemmed from the number of transitions in accounting software systems and payroll systems during this period in the process of remedying the previous year’s findings and the third-party accounting provider's inability to deliver monthly financial packages during this period due to the requirement for reconciliation and adjustments to opening balances and deferred program accounts. To remediate this, management has implemented the following controls under the new Managed Service Agreement: • Timely Reporting: Once the Audit adjusting journal entries have been completed in the accounting software, GAAP-compliant monthly financial reports will be run within 15 days of month-end close process for management and board review. • Actual Cost Invoicing: Management will discontinue tracking grant expenditures using historical spreadsheet methods vulnerable to human error. Payroll and non-payroll allocations are now integrated into the accounting software and the General Ledger expenditures will be used for payroll expenses, ensuring grant invoicing is driven strictly by actual, documented expenditures rather than budgeted amounts. • Management Review: The COO will perform a monthly reconciliation of actual payroll logs against general ledger allocations prior to grant reimbursement submissions and double-verify that payroll logs match planned and worked hours. • Resolution of Overbilled Funds: Regarding the $17,104 in overbilled grant revenue, management is actively coordinating with the respective pass-through and federal granting agencies to either apply these excess amounts as a credit against current invoices or return the funds directly. Expected Completion Date: December 2026 Contacts: Ann Marie Day, Chief Operating Officer, and Andy Lowe, Executive Director New England Rural Health Association 207-228-5966 amday@newenglandrha.org andy@newenglandrha.org

View Audit 407840

Finding 1224569 (2025-005)

Material Weakness 2025

Housing Authority of the City of North Chicago

IL

Cash Management HUD Housing Programs

Corrective Action Plan: The NCHA has implemented enhanced financial management procedures to ensure the proper segregation of Public Housing and Housing Choice Voucher program funds and prevent the use of one program’s resources to support another program’s expenditures without appropriate authoriza...

Corrective Action Plan: The NCHA has implemented enhanced financial management procedures to ensure the proper segregation of Public Housing and Housing Choice Voucher program funds and prevent the use of one program’s resources to support another program’s expenditures without appropriate authorization, documentation, and accounting treatment. Interprogram transactions are now recorded through established due to/due from accounts and reconciled monthly to ensure accurate fund accountability. Financial policies and procedures have been updated to reinforce program-specific allowable uses of funds, and Finance staff have received training on HUD financial management requirements, fund segregation, and proper accounting practices. Ongoing monthly financial reviews by management will provide continued oversight and ensure compliance with HUD requirements. 1. Program Fund Segregation and Accounting Controls The NCHA has revised its accounting procedures to ensure that all program revenues and expenditures are recorded within the appropriate program fund and cost center. Public Housing Operating Funds will only be utilized for eligible Public Housing activities, and HCV program costs will be supported through HCV Administrative Fees, HCV reserves, or other allowable funding sources. Any transactions identified as requiring temporary interprogram support will be recorded through appropriate due to/due from accounts and will not be treated as program expenditures. Interprogram balances will be tracked separately from operating activity and monitored for timely repayment or resolution. 2. Review and Correction of Historical Transactions Finance staff has completed a review of interprogram transactions to identify instances where costs were charged to the incorrect program. Necessary accounting adjustments have been processed to properly allocate expenditure to the appropriate funding source. Going forward, all program cost allocations will be reviewed to confirm that expenses are:  Reasonable and allowable under applicable HUD requirements;  Charged of the appropriate program;  Supported by adequate documentation; and  Consistent with approved cost allocation methodologies. 3. Updated Financial Policies and Procedures The Authority has updated its financial procedures to reinforce:  Program-specific expenditure requirements;  Prohibited uses of Public Housing funds for HCV activities;  Proper recording of interprogram receivables and payables;  Required approval and documentation for interprogram transactions; and  Monthly reconciliation requirements. The updated procedures establish clear responsibilities for Finance staff, program managers, and supervisory personnel involved in financial review and approval processes. 4. Staff Training and Awareness Finance and program staff have received training regarding:  HUD program fund restrictions;  Public Housing Operating Fund eligible uses;  HCV Administrative Fee limitations;  Proper accounting treatment of interprogram activity; and  Documentation requirements under federal financial management standards. Additional training will be provided as needed to reinforce compliance and prevent recurrence. 5. Ongoing Monitoring and Quality Control The Finance Director will conduct monthly financial reviews to verify:  Public Housing and HCV funds remain properly segregated;  Due to/due from balances are accurately recorded and reconciled;  Program expenditures are charged to the appropriate funding source; and  Corrective actions remain effective. Management will review monthly financial reports, including program-level income statements, balance sheets, and interprogram activity reports, to identify and address potential compliance issues in a timely manner. As part of the corrective action, the NCHA executed an Agreement with BDO to provide financial management training, technical assistance, and workflow support related to HUD program accounting requirements, fund segregation, and proper recording of interprogram activity. BDO assisted Finance staff with strengthening accounting processes, including the development and implementation of standardized Yardi workflows to ensure program-specific coding, proper cost allocation, approval routing, and accurate financial reporting. Responsible Official: CFO, Sr. Staff Accountant with oversight by Executive Director Expected Completion Date: Implemented July 31, 2026; ongoing monitoring and reconciliation

View Audit 407829

Finding 1224568 (2025-004)

Material Weakness 2025

Housing Authority of the City of North Chicago

IL

HUD Housing Programs Matching / Level of Effort / Earmarking

Corrective Action Plan: The NCHA has implemented CFP drawdown procedures to ensure that all eLOCCS requests are supported by eligible expenditures, properly documented, and submitted in accordance with applicable federal cash management requirements and HUD Capital Fund Program regulations. Effectiv...

Corrective Action Plan: The NCHA has implemented CFP drawdown procedures to ensure that all eLOCCS requests are supported by eligible expenditures, properly documented, and submitted in accordance with applicable federal cash management requirements and HUD Capital Fund Program regulations. Effective immediately, the Authority has established the following corrective actions:  CFP Drawdown Review and Approval Process  All CFP drawdown requests are now reviewed by Finance staff before submission to verify that requested amounts are supported by eligible CFP expenditures, available obligations, and approved Capital Fund budgets.  A Management approval requirement has been implemented for all eLOCCS draw requests before submission.  Supporting documentation, including invoices, purchase orders, contracts, payroll allocations, and other eligible expenditure support, is maintained with each draw request.  Monthly eLOCCS-to-Expenditure Reconciliation  Finance staff perform a monthly reconciliation of CFP eLOCCS drawdowns to actual expenditures recorded in the accounting system.  The reconciliation process confirms that: o Drawdowns do not exceed eligible costs incurred; o Funds are properly recorded for the appropriate Capital Fund grant year and project; o Outstanding balances and remaining grant funds are accurately monitored; and o Any discrepancies are identified and corrected on time through appropriate accounting adjustments.  Improved Cash Management Controls  NCHA revised its CFP cash management procedures to align drawdown timing with actual cash needs and incurred eligible costs.  Draw requests are limited to amounts necessary to reimburse expenditures and avoid excessive cash balances.  Finance staff have been trained in federal cash management requirements, CFP eligible cost principles, and proper eLOCCS drawdown procedures.  Documentation and Record Retention  NCHA implemented a CFP Drawdown Checklist to document: o Grant availability; o Eligible expenditures supporting the draw; o Required approvals; o Reconciliation completion; and o Supporting documentation retention.  CFP financial records are maintained in accordance with federal record retention requirements and are available for HUD review.  Ongoing Monitoring and Quality Control  The CFO or designee conducts periodic quality control reviews of CFP drawdowns and related reconciliations to ensure continued compliance.  Any identified exceptions are documented, corrected, and incorporated into ongoing staff training and process improvements. Responsible Official: CFO, Sr. Staff Accountant with oversight by Executive Director/CEO Responsible for implementation, monitoring, and continued compliance with CFP drawdown procedures. Expected Completion Date: Implemented July 2026; Ongoing monitoring and monthly reconciliation procedures will continue as part of the Authority’s standard financial management practices

View Audit 407829

Finding 1224567 (2025-003)

Material Weakness 2025

Housing Authority of the City of North Chicago

IL

HUD Housing Programs

Corrective Action Plan: The NCHA has initiated a comprehensive audit of participant files and implemented standardized eligibility checklists integrated with Yardi workflows and aligned with HUD program requirements. Staff has received retraining on income calculation, third-party verification requi...

Corrective Action Plan: The NCHA has initiated a comprehensive audit of participant files and implemented standardized eligibility checklists integrated with Yardi workflows and aligned with HUD program requirements. Staff has received retraining on income calculation, third-party verification requirements, and documentation standards, including proper data entry and supporting documentation within Yardi. A supervisory quality control review process has been established requiring review and approval of all new admissions and annual/interim reexaminations to ensure eligibility determinations, income calculations, and participant records are accurate, complete, and supported before final processing. Responsible Official: HCV Program Director / Public Housing Manager Expected Completion Date: File audit and training completed by September 30, 2026; ongoing monitoring thereafter

View Audit 407829

Finding 1224566 (2025-002)

Material Weakness 2025

Housing Authority of the City of North Chicago

IL

HUD Housing Programs

Corrective Action Plan: The NCHA has implemented a structured SEMAP tracking and certification process, including designation of a SEMAP Coordinator responsible for indicator tracking and submission. A quality control review checklist aligned with SEMAP indicators has been implemented. Staff receive...

Corrective Action Plan: The NCHA has implemented a structured SEMAP tracking and certification process, including designation of a SEMAP Coordinator responsible for indicator tracking and submission. A quality control review checklist aligned with SEMAP indicators has been implemented. Staff received training in SEMAP documentation and compliance requirements to ensure accurate and complete submissions. Responsible Official: HCV Program Director (or Designee) with oversight by Executive Director/CEO Expected Completion Date: Implemented August 1, 2026; full compliance beginning next SEMAP cycle

View Audit 407829

Finding 1224565 (2025-001)

Material Weakness 2025

Housing Authority of the City of North Chicago

IL

HUD Housing Programs § 200.512

Corrective Action Plan: The Lake County Housing Authority, in its administrative oversight of the North Chicago Housing Authority, acknowledges the finding related to the untimely submission of its audited financial statements to the Federal Audit Clearinghouse and the U.S. Department of Housing and...

Corrective Action Plan: The Lake County Housing Authority, in its administrative oversight of the North Chicago Housing Authority, acknowledges the finding related to the untimely submission of its audited financial statements to the Federal Audit Clearinghouse and the U.S. Department of Housing and Urban Development Real Estate Assessment Center (REAC), as required under 2 CFR §200.512. The delay resulted from control deficiencies within the financial reporting and audit coordination process during a period of system transition and evolving staffing capacity. These conditions affected the timely preparation of audit-ready financial information and supporting schedules. Management has implemented corrective actions to strengthen internal controls and ensure timely submission of future audits. These actions include the establishment of a formal audit timeline with defined milestones and assigned responsibilities; enhanced year-end close and reconciliation procedures to ensure audit-ready financial data; and the implementation of routine audit status monitoring to track progress and address issues in real time. In addition, the Authority engaged BDO USA to provide technical assistance, system support, and audit readiness consulting to improve financial reporting accuracy and alignment with HUD requirements. These measures address the underlying control deficiencies and establish a sustainable framework to ensure compliance with federal reporting deadlines. Responsible Staff: Executive Director/CEO in coordination with Chief Financial Officer Expected Completion Date: Implemented August 1, 2026; ongoing compliance thereafter

View Audit 407829

Finding 1224562 (2025-001)

Material Weakness 2025

Evans County Board of Education

GA

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.303 § 200.318 § 200.320

FA 2025-001 Improve Controls over Procurement and Suspension and Debarment Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: Assistance Listing Number and Title: Federal Award Number: Questioned Costs: Description: Procurement and Suspe...

FA 2025-001 Improve Controls over Procurement and Suspension and Debarment Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: Assistance Listing Number and Title: Federal Award Number: Questioned Costs: Description: Procurement and Suspension and Debarment Material Weakness Material Noncompliance U.S. Department of Education Georgia Department of Education 84.027A- Grants to States; 84.173A- Preschool Grants H027 A230073 (Year: 2024), H027 A240073 (Year: 2025), H173A240081 (Year: 2025) $4,500 A review of expenditures charged to the Special Education Cluster revealed that the School District's internal control procedures were not operating appropriately to ensure that the School District's procurement and suspension and debarment procedures were followed. Corrective Action Plans: The School District has evaluated and improved internal control procedures by processing expenditures through the approved financial management system to ensure that required procurement methods are properly identified and followed and required procurement and suspension and debarment documentation is properly identified, safeguarded, and retained. Estimated Completion Date: June 30, 2026 Contact Person: Anthony Parrillo, Chief Financial Officer Telephone: 912-739-3544 Email: aparrillo@evanscountyschools.org

View Audit 407818

Finding 1224559 (2025-004)

Material Weakness 2025

City of Versailles

KY

Reporting § 200.512

We agree with the auditors' recommendations, and the following action will be taken to improve the timeliness of the financial reporting process. Management will consult with the audit firm and outside CPA firm to develop an agreed upon schedule for the FY 2026 financial reporting process and relate...

We agree with the auditors' recommendations, and the following action will be taken to improve the timeliness of the financial reporting process. Management will consult with the audit firm and outside CPA firm to develop an agreed upon schedule for the FY 2026 financial reporting process and related audit to meet the Financial Audit Clearinghouse reporting requirement. We will also identify additional training for departmental staff to improve skills and address identified deficiencies. Finally, Management will review capacity constraints and development solutions to improve capacity.

View Audit 407814

Finding 1224558 (2025-007)

Material Weakness 2025

City of Shepherdsville

KY

Reporting

The Single Audit was not completed and submitted within the required timeframe due to a combination of factors, including delays in submitting supporting documentation, and staffing constraints due to implementing new payroll software during the audit. Management has completed the FY2025 audit and i...

The Single Audit was not completed and submitted within the required timeframe due to a combination of factors, including delays in submitting supporting documentation, and staffing constraints due to implementing new payroll software during the audit. Management has completed the FY2025 audit and issued the financial statements. To prevent recurrence the city has established earlier deadlines for the completion of year end close, federal award schedules, and supporting documentation along with periodic progress reviews with external auditors. Effectiveness will be measured by timely issuance of audited financial statements in accordance with all regulatory and stakeholder requirements beginning with the FY2026 audit cycle. Angela Middaugh, the Director of Finance of the City, will be responsible for monitoring progress and allocating the necessary resources for timely issuance.

View Audit 407810

Finding 1224555 (2025-001)

Material Weakness 2025

Columbia Opportunities, Inc.

NY

Reporting

Name of auditee: Columbia Opportunities, Inc. TIN: 14-1627038 Name of audit firm: EFPR Group, CPAs, PLLC Period covered by audit: November 1, 2024 - October 31, 2025 CAP prepared by: Tina Sharpe tsharpe@columbiaopportunities.org Finding 2025-001 Corrective Action Plan The Organization acknowledges a...

Name of auditee: Columbia Opportunities, Inc. TIN: 14-1627038 Name of audit firm: EFPR Group, CPAs, PLLC Period covered by audit: November 1, 2024 - October 31, 2025 CAP prepared by: Tina Sharpe tsharpe@columbiaopportunities.org Finding 2025-001 Corrective Action Plan The Organization acknowledges and is aware of this finding. Management and fiscal departments are responsible for timely reporting. Management will follow its comprehensive policies and procedures and complete reporting submissions on time for future periods.

View Audit 407801

Finding 1224554 (2025-005)

Material Weakness 2025

Housing Authority of Florence

AL

Allowable Costs / Cost Principles Questioned Costs Eligibility

Program Name: Emergency Housing Voucher (EHV) Program (Housing Voucher Cluster) 14.EHV During the audit of the financial statements for the year ended September 30, 2025, testing of Emergency Housing Voucher (EHV) program activity identified that approximately $90,317 of EHV funds were used for acti...

Program Name: Emergency Housing Voucher (EHV) Program (Housing Voucher Cluster) 14.EHV During the audit of the financial statements for the year ended September 30, 2025, testing of Emergency Housing Voucher (EHV) program activity identified that approximately $90,317 of EHV funds were used for activities outside of the EHV program - specifically, within the Moving to Work (MTW) Demonstration Program - without a waiver or approval from HUD. EHV funds are restricted to activities allowable under the EHV program and are not subject to MTW funding fungibility; any application of MTW administrative flexibilities to EHV vouchers requires HUD approval before implementation. The Authority did not maintain adequate controls to ensure EHV funds were restricted to allowable EHV expenditures or to verify that appropriate HUD approval was obtained prior to using EHV funds for non-EHV activities. As a result, federal funds may have been expended for purposes not authorized under the EHV program, resulting in noncompliance with federal requirements and questioned costs of $90,317. This condition represents noncompliance and a significant deficiency in internal control over compliance. Questioned Costs: $90,317 The Authority concurs with the finding and questioned costs of $90,317. The Authority will strengthen controls over federal program expenditures to ensure EHV funds are used solely for allowable EHV activities; establish procedures to obtain and retain documentation of any HUD approvals or waivers before applying MTW flexibilities to EHV vouchers or using EHV funds outside of their intended purpose; work with HUD to resolve the questioned costs; and provide staff training on EHV program eligibility and allowable-cost requirements.Timeline for completion: 3 months

View Audit 407799

Finding 1224553 (2025-001)

Material Weakness 2025

Housing Authority of Florence

AL

Cash Management § 200.302 § 200.305

Finding Number: Finding 2025-001 Title: Improper Timing of MTW Capital Fund Program (CFP) Drawdowns (ALN 14.881) - Repeat of Finding 2024-002 Program Name: Moving to Work Demonstration Program - Capital Fund Program ALN: 14.881 Description: During testing of the Capital Fund Program (CFP) component ...

Finding Number: Finding 2025-001 Title: Improper Timing of MTW Capital Fund Program (CFP) Drawdowns (ALN 14.881) - Repeat of Finding 2024-002 Program Name: Moving to Work Demonstration Program - Capital Fund Program ALN: 14.881 Description: During testing of the Capital Fund Program (CFP) component of the Moving to Work (MTW) Demonstration Program, we determined that the Authority drew down CFP funds in advance of need. As of September 30, 2025, $1,891,326 of CFP funds drawn during the fiscal year remained unearned (undisbursed) and were carried as restricted/unearned amounts at year end. The drawdowns were not aligned with immediate, allowable obligations or expenditures at the time the funds were requested. This condition is a repeat of prior year finding 2024-002. Planned Corrective Action: The Authority concurs with the finding and acknowledges it is a repeat of finding 2024-002 involving cash management and drawdown procedures. Revise cash management procedures; require documented support and approval for drawdowns; perform monthly reconciliations; monitor interest earned on undisbursed federal cash; provide staff training; and report compliance status to the Board of Commissioners. Timeline for completion: 6 months

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Finding 1224552 (2025-004)

Material Weakness 2025

Housing Authority of Florence

AL

HUD Housing Programs Questioned Costs § 200.303 § 200.521

Compliance Deficiencies Identified in HUD Monitoring Review (Repeat of Finding 2024-006) Program Name: N/A ALN: N/A Description: The compliance deficiencies identified in the U.S. Department of Housing and Urban Development (HUD) Compliance Monitoring Review conducted June 24-28, 2024 (formalized in...

Compliance Deficiencies Identified in HUD Monitoring Review (Repeat of Finding 2024-006) Program Name: N/A ALN: N/A Description: The compliance deficiencies identified in the U.S. Department of Housing and Urban Development (HUD) Compliance Monitoring Review conducted June 24-28, 2024 (formalized in HUD's letter dated March 24, 2025) remained unresolved as of September 30, 2025. The open items span multiple program areas, including governance and internal controls, HoJsing Choice Voucher (HCV) program compliance, Project-Based Voucher (PBV) documentation, Public Housing operations, ROSS grant administration, Violence Against Women Act (VAWA) policy, and Section 3 compliance. This condition is a repeat of prior year finding 2024-006. Planned Corrective Action: The Authority concurs with the finding and acknowledges it is a repeat of finding 2024-006. Maintain a remediation tracker; implement corrective actions identified by HUD; conduct training and file reviews; submit required certifications; and provide progress updates until all items are closed. Timeline for completion: 6 months

View Audit 407799

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