Corrective Action Plans

Finding 1229361 (2025-002)

Material Weakness 2025

CA

Reporting § 200.510

Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding and recognizes the importance of preparing a complete and accurate Schedule of Expenditures of Federal Awards (SEFA) prior to the commencement of the annual audit in accordance with the requirements of 2...

Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding and recognizes the importance of preparing a complete and accurate Schedule of Expenditures of Federal Awards (SEFA) prior to the commencement of the annual audit in accordance with the requirements of 2 CFR §200.510(b). The finding resulted from the absence of a formalized process to consistently identify and document federal funding components within contracts funded through multiple revenue sources, including changes reflected in new and renewed County contracts. As a result, certain federal funding components were not identified during the initial preparation of the SEFA, requiring revisions during the audit. In response, management has implemented and will continue to enhance procedures to strengthen the preparation and review of the SEFA throughout the fiscal year. These corrective actions include: • Establishing formal procedures requiring the identification and documentation of Assistance Listing Numbers (ALNs) for all new contracts and contract renewals. • Tracking applicable federal funding and corresponding ALNs within the accounting system to support the accurate preparation and review of the SEFA. • Requiring the Controller to review all new and renewed contracts monthly to identify changes affecting federal funding and ensure the SEFA is updated accordingly. • Obtaining and maintaining timely ALN confirmations and supporting documentation for all applicable federal awards. • Preparing and reconciling the completed SEFA to supporting accounting records, finding documentation, and applicible federal and pass-through contracts prior to submission to the independent auditors.

View Audit 410804

Finding 1229347 (2025-001)

Material Weakness 2025

San Diego Youth Services

CA

Reporting Special Tests & Provisions

Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding and recognizes the importance of timely completion of the annual audit and submission of the audited financial statements and Data Collection Form to the Federal Audit Clearinghouse in accordance with th...

Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding and recognizes the importance of timely completion of the annual audit and submission of the audited financial statements and Data Collection Form to the Federal Audit Clearinghouse in accordance with the requirements of 2 CFR Part 200, Subpart F. The delay resulted from a combination of finance staff turnover, the transition in finance leadership, the extended completion timeline of the prior year’s audit, and the need to further strengthen year-end financial close and audit preparation processes. In response, management has implemented and continues to enhance monthly financial close and reconciliation procedures to improve the accuracy, completeness, and timeliness of financial reporting while strengthening overall audit readiness. To further strengthen the sustainability of the finance function, management has implemented cross-training within the finance department and is centralizing key financial close and audit preparation procedures to improve consistency, preserve institutional knowledge, and reduce reliance on individual staff members. In addition, management has established a comprehensive annual audit preparation timeline that includes completing key account reconciliations and audit schedules throughout the fiscal year, conducting periodic audit readiness reviews, and engaging the independent auditors by August 15. Audit fieldwork will begin no later than September 1, with the goal of issuing the audited financial statements by December 31, well in advance of the federal reporting deadline. Management believes these corrective actions will strengthen financial reporting processes, improve audit readiness, enhance organizational resilience, and ensure future compliance with the reporting requirements of 2 CFR Part 200, Subpart F.

View Audit 410804

Finding 1229332 (2025-005)

Material Weakness 2025

Volunteers of America of Eastern Washington and Northern Idaho

WA

Procurement, Suspension & Debarment

1) New properties are being documented with more detailed level of information to suffice an audit review.

View Audit 410794

Finding 1229330 (2025-004)

Material Weakness 2025

Volunteers of America of Eastern Washington and Northern Idaho

WA

Procurement, Suspension & Debarment

See 2025-003.

View Audit 410794

Finding 1229326 (2025-003)

Material Weakness 2025

Volunteers of America of Eastern Washington and Northern Idaho

WA

Procurement, Suspension & Debarment

1) Suspension and debarment checks are performed prior to entering into any federally funded transaction, not just annually, to fully comply with federal requirements. 2) These checks are a part of the Contracts Workflow (mentioned in 2025-001), which is a contract execution checklist that lists all...

1) Suspension and debarment checks are performed prior to entering into any federally funded transaction, not just annually, to fully comply with federal requirements. 2) These checks are a part of the Contracts Workflow (mentioned in 2025-001), which is a contract execution checklist that lists all items to be completed, with staff signoff, before a contract can be signed. 3) A SAM search of all vendors was completed June 1, 2025, to assure all vendors had a baseline SAM search on record.

View Audit 410794

Finding 1229322 (2025-001)

Material Weakness 2025

Town of Swampscott

MA

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

Planned Corrective Action: The next subsequent Project and Expenditure report to be filed for this program will include the expenditures incurred for the period of 1/1/2025-3/31/2025 that were previously unreported. A second person will review subsequent reports for this program for accuracy prior t...

Planned Corrective Action: The next subsequent Project and Expenditure report to be filed for this program will include the expenditures incurred for the period of 1/1/2025-3/31/2025 that were previously unreported. A second person will review subsequent reports for this program for accuracy prior to submission to reduce the risk of non-compliance with program rules. Anticipated Completion Date: April 30th, 2026 Person Responsible for Corrective Action: Patrick Luddy (Director of Finance, Town of Swampscott, MA) Patrick Luddy

View Audit 410784

Finding 1229320 (2025-007)

Material Weakness 2025

Independent School District No. 197

MN

Reporting § 200.512

REPORTABLE NONCOMPLIANCE WITH FEDERAL REPORTING REQUIREMENTS – ALL FEDERAL PROGRAMS AWARDED UNDER THE UNIFORM GUIDANCE 2025-007 Federal Reporting Deadline Finding Summary Criteria – 2CFR Part 200, Subpart F, § 200.512(a)(1) requires the District’s audited Schedule of Expenditures Federal Awards (SEF...

REPORTABLE NONCOMPLIANCE WITH FEDERAL REPORTING REQUIREMENTS – ALL FEDERAL PROGRAMS AWARDED UNDER THE UNIFORM GUIDANCE 2025-007 Federal Reporting Deadline Finding Summary Criteria – 2CFR Part 200, Subpart F, § 200.512(a)(1) requires the District’s audited Schedule of Expenditures Federal Awards (SEFA) and federal reporting package to be submitted to the federal audit clearinghouse within the earlier of 30 calendar days after the receipt of the auditor’s report(s), or 9 months after the end of the audit period. Condition – The District’s audited SEFA and federal reporting package for the fiscal year ended June 30, 2025, were not submitted to the federal audit clearinghouse within nine months after the end of the audit period. Corrective Action Plan Actions Planned – The completion of the District’s audited annual financial statements for the year ended June 30, 2025, which is a required component of the federal reporting package, was delayed beyond the nine-month deadline, primarily due to turnover in the District’s finance department. District management will ensure that all information required to comply with federal reporting requirements will be completed and submitted in a timely manner going forward. Official Responsible – Brian Schultz, the District’s Finance Director. Planned Completion Date – December 31, 2026. Disagreement With or Explanation of Finding – The District agrees with this finding. Plan to Monitor – Brian Schultz, the District’s Finance Director, will monitor the year-end financial closing and reporting process to ensure all federal and state reporting requirements are complied with in the future.

View Audit 410783

Finding 1229310 (2025-006)

Material Weakness 2025

Independent School District No. 197

MN

Internal Control / Segregation of Duties Cash Management Eligibility

SIGNIFICANT DEFICIENCIES IN INTERNAL CONTROL OVER COMPLIANCE – U.S. DEPARTMENT OF AGRICULTURE, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, CHILD NUTRITION CLUSTER – FEDERAL ALN 10.555, 10.559, AND 10.553 2025-006 Internal Control Over Compliance With Allowable Activities Requirements Finding S...

SIGNIFICANT DEFICIENCIES IN INTERNAL CONTROL OVER COMPLIANCE – U.S. DEPARTMENT OF AGRICULTURE, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, CHILD NUTRITION CLUSTER – FEDERAL ALN 10.555, 10.559, AND 10.553 2025-006 Internal Control Over Compliance With Allowable Activities Requirements Finding Summary Criteria – 7 CFR § 210.8 requires the District to establish and maintain effective internal control over compliance with requirements applicable to federal program allowable activities, including meal count requirements applicable to child nutrition cluster federal programs. Condition – The District did not have sufficient controls in place within its child nutrition cluster to assure that it was accurately reporting meals counts for federal reimbursement, specifically pre-K students at non-public schools and summer meals served at apartment building sites. Corrective Action Plan Actions Planned – The District will review its policies and procedures relating to meal counts for its federal programs and will ensure that accurate meal counts are documented and submitted for federal reimbursement. Official Responsible – Brian Schultz, the District’s Finance Director. Planned Completion Date – December 31, 2026. Disagreement With or Explanation of Finding – The District agrees with this finding. Plan to Monitor – Brian Schultz, the District’s Finance Director, will review and update the District’s policies and procedures relating to eligible meal tracking and reimbursement submission for its child nutrition cluster federal program to ensure compliance with the Uniform Guidance in the future.

View Audit 410783

Finding 1229307 (2025-005)

Material Weakness 2025

Independent School District No. 197

MN

Procurement, Suspension & Debarment Internal Control / Segregation of Duties School Nutrition Programs

SIGNIFICANT DEFICIENCIES IN INTERNAL CONTROL OVER COMPLIANCE – U.S. DEPARTMENT OF AGRICULTURE, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, CHILD NUTRITION CLUSTER – FEDERAL ALN 10.555, 10.559, AND 10.553 2025-005 Internal Control Over Compliance With Federal Suspension and Debarment Requiremen...

SIGNIFICANT DEFICIENCIES IN INTERNAL CONTROL OVER COMPLIANCE – U.S. DEPARTMENT OF AGRICULTURE, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, CHILD NUTRITION CLUSTER – FEDERAL ALN 10.555, 10.559, AND 10.553 2025-005 Internal Control Over Compliance With Federal Suspension and Debarment Requirements Finding Summary Criteria – 2 CFR § 180 requires the District to establish and maintain effective internal control over compliance with requirements applicable to federal program expenditures, including suspension and debarment requirements applicable to the child nutrition cluster. Condition – The District did not have sufficient controls in place within its child nutrition cluster to assure that it was not contracting for goods or services with parties that are suspended or debarred, or whose principals are suspended or debarred from participating in contracts involving the expenditures of federal program funds. Corrective Action Plan Actions Planned – The District will review its policies and procedures relating to suspension and debarment for its federal programs and will ensure that all parties with which it contracts for goods or services are eligible to participate in contracts involving the expenditures of federal program funding. Official Responsible – Brian Schultz, the District’s Finance Director. Planned Completion Date – December 31, 2026. Disagreement With or Explanation of Finding – The District agrees with this finding. Plan to Monitor – Brian Schultz, the District’s Finance Director, will ensure appropriate controls are in place to verify that any vendor with which the District contracts for federal program goods or services exceeding $25,000 is not listed as suspended or debarred on the federal Excluded Parties List System website.

View Audit 410783

Finding 1229304 (2025-002)

Material Weakness 2025

Housing Authority of the County of Outagamie

WI

Internal Control / Segregation of Duties

Comments on findings and recommendations Management agrees with the finding and recommendation. Actions taken or planned The Authority will hire staff to eliminate the segregation of duties risk. Anticipated completion date September 15, 2026

View Audit 410781

Finding 1229303 (2025-002)

Material Weakness 2025

City of Baton Rouge - Parish of East Baton Rouge

LA

Reporting Internal Control / Segregation of Duties Procurement, Suspension & Debarment § 200.303

The EBR Head Start Program follows the established financial policies, procedures, and approval processes administered through the City of Baton Rouge and Parish of East Baton Rouge. EBR Head Start does not maintain a separate set of finance procedures independent of the City-Parish. Rather, the pro...

The EBR Head Start Program follows the established financial policies, procedures, and approval processes administered through the City of Baton Rouge and Parish of East Baton Rouge. EBR Head Start does not maintain a separate set of finance procedures independent of the City-Parish. Rather, the program operates within the existing City-Parish framework. These processes include the review, approval, and monitoring of activities necessary to support compliance with applicable Federal requirements. The finding identified an opportunity for the Head Start Program to demonstrate how it applies and maintains evidence of these existing controls within the department. The Department of Transportation and Drainage will assess and improve its current guidelines and procedures for ensuring record-keeping compliance with all applicable federal requirements. Although currently being enforced, these remedies will include the following processes: Ensure applicable federal statute requirements are included in the contract advertisement, proposal and bid documents; Identifying and documenting when a contract can be sole sourced; Collecting and storing compliance documentation before, during and after contract execution; Internal audit for compliance; and additional controls identified during discussions between the Department of Transportation and Drainage and its consultants. While internal controls were informally in place for Airport, the department-wide documentation demonstrating the design and operating effectiveness of controls was not formalized. To address this and ensure full compliance with 2 CFR 200.303, management has initiated the following corrective actions: Development and formal adoption of comprehensive, written policies and procedures that explicitly define internal controls over each applicable compliance requirement, utilizing recognized frameworks such as COSO or the Green Book; Implementing a centralized or coordinated approach for maintaining internal control documentation to ensure consistency and guarantee that evidence of control activities is readily accessible; Establish a process for periodic reviews to verify that all applicable compliance documentation is complete, current, and aligned with federal requirements; Relevant staff and departmental personnel will undergo training on these formalized policies to reinforce expectations for documenting internal controls in accordance with Uniform Guidance. The Department of Environmental Services will assess and improve its current guidelines and procedures for documenting internal controls over federal awards and ensuring compliance with applicable federal requirements. These improvements will include developing formal department-level procedures, identifying and maintaining required compliance documentation, establishing consistent record-retention practices, periodically reviewing documentation for completeness and accuracy, providing guidance to appropriate staff, and implementing any additional controls identified as necessary to comply with 2 CFR Part 200.303. Expected Implementation Date: December 2026 Contact person: Kelly LeDuff, Executive Director/Community Development, Federal Programs & Outreach Mike Edwards, Director of Aviation, Baton Rouge Metropolitan Airport Fred Raiford, Director, Transportation and Drainage Adam Smith, Director, Environmental Services

View Audit 410775

Finding 1229296 (2025-003)

Material Weakness 2025

City of Baton Rouge - Parish of East Baton Rouge

LA

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.303

Although currently being enforced by the Department of Transportation and Drainage, current guidelines and procedures will be reassessed and improved upon to ensure record-keeping compliance with BABA and any other applicable federal acts moving forward. These remedies will include the following: Tr...

Although currently being enforced by the Department of Transportation and Drainage, current guidelines and procedures will be reassessed and improved upon to ensure record-keeping compliance with BABA and any other applicable federal acts moving forward. These remedies will include the following: Trimble Unity Construct (TUC) software will continue to be used as a repository for all relevant construction project documentation; Compliance certification letters must be submitted and approved through the established construction submittal workflow process, or other future processes, in TUC for applicable BABA materials; A specific field for BABA compliant documentation will now be required to ensure that a pay item or any of its components satisfy BABA requirements prior to completing a material submittal process; Guidance that certification letters must be provided for review concurrently with material submittals will be provided to Construction Document Controls staff; Continue to maintain the BABA compliance tracking document for internal record-keeping and for federal internal audits at an established interval based upon the duration or cost of the contract. This will be executed by a designated audit review team established by the Department of Transportation and Drainage through use of audit checklists based on specific grant requirements. Any deficiencies discovered during the audit will be communicated through a Grant Compliance Remediation Plan with deadline identified for corrections. In order to bring the documentation into compliance for construction materials installed on active grants, the Department of Transportation and Drainage proposes to perform the following immediate actions: Update the current BABA log to include additional information not already captured for materials, installed and expected, the status of each item’s compliance letter, if the letter contains the required five criteria and where the letter is stored; Hold an initial BABA regroup meeting with the contractor to discuss materials installed, materials expected, and status letters for all items, with subsequent bi-weekly meetings to address any identified deficiencies; and review all letters, currently stored and to be received, submitted by the Prime Contractor into TUC to ensure the letters contain the five criteria required for federal compliance and enter the conformity into the BABA log. Expected Implementation Date: December 2026 Contact person: Fred Raiford, Director, Transportation and Drainage

View Audit 410775

Finding 1229293 (2025-002)

Material Weakness 2025

Muscatine Center for Social Action

IA

The Organization will review and implement processes and controls to ensure they record expenditures in the appropriate period and provide accurate year–end account balances

View Audit 410772

Finding 1229292 (2025-001)

Material Weakness 2025

Muscatine Center for Social Action

IA

Reporting Internal Control / Segregation of Duties

The Organization will review and implement processes and controls to ensure they record expenditures in the appropriate period and provide accurate year–end account balances

View Audit 410772

Finding 1229290 (2025-001)

Material Weakness 2025

Cong MacHzikei Hadas of Belz

NY

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting § 200.512

The Organization should develop a compliance calendar that includes financial reporting deadlines and set automatic reminders in advance of each deadline to aid in properly planning and timing submission of reporting packages. Additionally, the Organization should engage the audit firm well before t...

The Organization should develop a compliance calendar that includes financial reporting deadlines and set automatic reminders in advance of each deadline to aid in properly planning and timing submission of reporting packages. Additionally, the Organization should engage the audit firm well before the fiscal year end, and the auditors should put this engagement on their calendar well in advance of the due date. The Organization should establish a timeline with the auditors that aligns with internal deadlines to ensure sufficient time to conduct the audit. The Organization’s Board of Directors should be more actively engaged in the auditing and reporting process to establish a greater degree of accountability and oversight. Anticipated Completion Date: 03/31/2027. Actions Taken: The Organization has begun implementing the above-mentioned recommendations. The Organization will ensure that it has a working compliance calendar to assist in meeting the reporting deadline. Additionally, the Organization has engaged the audit firm for their upcoming fiscal year-end, and the audit firm has put it on its calendar to begin the audit process well in advance. The Organization’s board of directors has agreed to oversee the auditing and reporting processes to a greater extent. With these actions, the Organization expects to comply with the Uniform Guidance for single audits deadline for the fiscal year end 06/30/2026. Mr. Moshe Weiss, Food Program director, has been designated to monitor the plan of corrective action for this finding. He can be reached at 845-425-0909. Contact Person Responsible for Corrective Action: Moshe Weiss, Food Program Director

View Audit 410768

Finding 1229283 (2025-002)

Material Weakness 2025

New York Association on Independent Living, Inc.

NY

Management acknowledges that the SF-SAC for the fiscal year ended September 30, 2025 was not submitted by the required deadline of June 30, 2026. The delay occurred during a period when the finance department lacked sufficient capacity, experience, and oversight to effectively manage all financial r...

Management acknowledges that the SF-SAC for the fiscal year ended September 30, 2025 was not submitted by the required deadline of June 30, 2026. The delay occurred during a period when the finance department lacked sufficient capacity, experience, and oversight to effectively manage all financial reporting and federal complaince responsibilities. As a result, the filing requirement was not completed within the perscribed timeframe. To address the issues, management has restructured the finance department, clarified roles and responsibilities, and stregthened supervisory review procedures over financiall reporting and compliance activities. In addition, management has established a formal year-end closing procedures and audit preparation timeline that requires the organization to be audit-ready and provide all requested schedules, supporting documentation, and audit workpapers to the external auditors no later than MArch 31 each year. MAnamegement believes these corrective actions have significantly enhanced oversight, accountability, and compliance monitoring and will help ensure that all future Uniform Guidance reporting requireement are met on a timely basis.

View Audit 410760

Finding 1229282 (2025-001)

Material Weakness 2025

New York Association on Independent Living, Inc.

NY

Reporting

2025-001: Supervisory Review of Accounting function Management Response and Corrective Actions Taken: Management acknowledges that certain subcontractor invoices incurred prior to September 30 were not accrued, resulting in an audit adjustment. While the adjustment was necessary, management does not...

2025-001: Supervisory Review of Accounting function Management Response and Corrective Actions Taken: Management acknowledges that certain subcontractor invoices incurred prior to September 30 were not accrued, resulting in an audit adjustment. While the adjustment was necessary, management does not believe the issue resulted from a lack of oversight. During the fiscal year, management and the board identified concerns within the finance department to stregthen financials management and internal controls. Action taken included revising the organization's fiscal policies, engaging an independent firm to asses the finance department, obtaining Board oversight and approval throughout the process, documenting critical accounting procedures, and implementing additional financial oversight during the transition. Management also strengthened year end closing procedures by establishing documented account reconciliation, review, and accrual processes to ensure liabilities are recorded in the proper reporting period regardless of invoice receipt date. Manamgement believes these actions demonstrate proactive oversight, transparency with the board, and committement to stregthening the oprganization's internal control enviroment while reducing financial and operational risk. Anticipated completion date: Implemented March 2026

View Audit 410760

Finding 1229281 (2025-001)

Material Weakness 2025

Bais Yaakov Elementary of Rockland County

NY

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting § 200.512

The Organization should develop a compliance calendar that includes financial reporting deadlines and set automatic reminders in advance of each deadline to aid in properly planning and timing submission of reporting packages. Additionally, the Organization should engage the audit firm well before t...

The Organization should develop a compliance calendar that includes financial reporting deadlines and set automatic reminders in advance of each deadline to aid in properly planning and timing submission of reporting packages. Additionally, the Organization should engage the audit firm well before the fiscal year end, and the auditors should put this engagement on their calendar well in advance of the due date. The Organization should establish a timeline with the auditors that aligns with internal deadlines to ensure sufficient time to conduct the audit. The Organization’s Board of Directors should be more actively engaged in the auditing and reporting process to establish a greater degree of accountability and oversight. Anticipated Completion Date: 05/31/2027. Actions Taken: The Organization has begun implementing the above-mentioned recommendations. The Organization will ensure that it has a working compliance calendar to assist in meeting the reporting deadline. Additionally, the Organization has engaged the audit firm for their upcoming fiscal year-end, and the audit firm has put it on its calendar to begin the audit process well in advance. The Organization’s board of directors has agreed to oversee the auditing and reporting processes to a greater extent. With these actions, the Organization expects to comply with the Uniform Guidance for single audits deadline for the fiscal year end 08/31/2026. Nisson Portnoy, Food Program director, has been designated to monitor the plan of corrective action for this finding. He can be reached at 845-368-2247. Contact Person Responsible for Corrective Action: Nisson Portnoy, Food Program Director

View Audit 410757

Finding 1229279 (2025-005)

Material Weakness 2025

Idaho Coalition Against Sexual & Domestic Violence, Inc.

ID

Subrecipient Monitoring Allowable Costs / Cost Principles Period of Performance § 200.308 § 200.309 § 200.403 § 200.514 § 200.514(C)

THE COALITION WILL MAINTAIN A CENTRALIZED GRANT REGISTER IDENTIFYING EACH AWARD NUMBER, PROJECT CODE, BEGINNING DATE, ENDING DATE, AND APPROVED PERIOD OF PERFORMANCE. FINANCE WILL USE THE REGISTER DURING MONTHLY CLOSE AND GRANT REVIEW TO VERIFY THAT PAYROLL AND NON-PAYROLL EXPENDITURES ARE CHARGED T...

THE COALITION WILL MAINTAIN A CENTRALIZED GRANT REGISTER IDENTIFYING EACH AWARD NUMBER, PROJECT CODE, BEGINNING DATE, ENDING DATE, AND APPROVED PERIOD OF PERFORMANCE. FINANCE WILL USE THE REGISTER DURING MONTHLY CLOSE AND GRANT REVIEW TO VERIFY THAT PAYROLL AND NON-PAYROLL EXPENDITURES ARE CHARGED TO THE CORRECT ACTIVE GRANT/PROJECT. BEFORE AND AFTER AN AWARD END DATE, FINANCE WILL REVIEW PROJECT ACTIVITY FOR COSTS POSTED OUTSIDE THE APPROVED PERIOD, CONFIRM WHETHER ANY PRE-AWARD OR CLOSEOUT COST IS AUTHORIZED, AND RECLASSIFY MISCODED TRANSACTIONS BEFORE GRANT REPORTING IS FINALIZED. NEW AWARD/PROJECT CODES WILL BE ESTABLISHED AND COMMUNICATED BEFORE COSTS ARE CHARGED TO A SUCCESSOR AWARD. IN ADDITION, AFTER THE MONTHLY CLOSE PROCESS IS COMPLETE, FINANCE WILL DISTRIBUTE GRANT STATEMENTS TO ADMINISTRATION TO REVIEW EXPENDITURES AND REMAINING GRANT BALANCES FOR REASONABLENESS. THIS PROVIDES AN ADDITIONAL LAYER OF OVERSIGHT TO VERIFY THAT GRANT-RELATED EXPENSES HAVE BEEN RECORDED ACCURATELY.

View Audit 410756

Finding 1229278 (2025-004)

Material Weakness 2025

Idaho Coalition Against Sexual & Domestic Violence, Inc.

ID

Internal Control / Segregation of Duties Reporting § 200.514 § 200.514(C)

THE COALITION WILL REQUIRE DOCUMENTED REVIEW AND APPROVAL OF EMPLOYEE TIME FOR EVERY PAYROLL PERIOD AND WILL RETAIN PAYROLL AND TIMEKEEPING RECORDS IN AN AUDIT-ACCESSIBLE LOCATION. BEFORE PAYROLL IS PROCESSED, DESIGNATED MANAGEMENT WILL REVIEW TIME ENTRIES FOR COMPLETENESS, FUNDING ALLOCATION, LEAVE...

THE COALITION WILL REQUIRE DOCUMENTED REVIEW AND APPROVAL OF EMPLOYEE TIME FOR EVERY PAYROLL PERIOD AND WILL RETAIN PAYROLL AND TIMEKEEPING RECORDS IN AN AUDIT-ACCESSIBLE LOCATION. BEFORE PAYROLL IS PROCESSED, DESIGNATED MANAGEMENT WILL REVIEW TIME ENTRIES FOR COMPLETENESS, FUNDING ALLOCATION, LEAVE, AND APPROVAL STATUS. THE PAYROLL FILE RETAINED FOR EACH PERIOD WILL INCLUDE THE APPROVED TIME RECORD, PAYROLL REGISTER, ALLOCATION DETAIL, AND EVIDENCE OF PREPARER/REVIEWER APPROVAL. WHEN TIMEKEEPING OR PAYROLL SYSTEMS CHANGE, THE COALITION WILL EXPORT AND PRESERVE HISTORICAL REPORTS AND APPROVAL RECORDS FOR THE APPLICABLE RECORD-RETENTION PERIOD BEFORE ACCESS TO THE PRIOR SYSTEM ENDS.

View Audit 410756

Finding 1229277 (2025-003)

Material Weakness 2025

Idaho Coalition Against Sexual & Domestic Violence, Inc.

ID

Allowable Costs / Cost Principles § 200.514 § 200.514(C)

THE COALITION WILL FORMALIZE AND RETAIN A DOCUMENTED ALLOCATION CONTROL PROCESS FOR EXPENSES CHARGED TO FEDERAL PROGRAMS. ON A MONTHLY BASIS, FINANCE WILL RECONCILE PAYROLL REPORTS FROM GUSTO TO THE GENERAL LEDGER TO ENSURE PAYROLL ENTRIES POSTED TO THE GL AGREE TO THE PAYROLL REGISTER FOR THE APPLI...

THE COALITION WILL FORMALIZE AND RETAIN A DOCUMENTED ALLOCATION CONTROL PROCESS FOR EXPENSES CHARGED TO FEDERAL PROGRAMS. ON A MONTHLY BASIS, FINANCE WILL RECONCILE PAYROLL REPORTS FROM GUSTO TO THE GENERAL LEDGER TO ENSURE PAYROLL ENTRIES POSTED TO THE GL AGREE TO THE PAYROLL REGISTER FOR THE APPLICABLE PAY PERIOD. THESE RECONCILED PAYROLL ENTRIES WILL SERVE AS THE BASIS FOR ALL PAYROLL ALLOCATIONS. FOR PAYROLL ALLOCATIONS, THE PAYROLL REGISTER WILL SERVE AS THE SOURCE DOCUMENT AND WILL BE RECONCILED TO THE ALLOCATION WORKSHEET AND THE CORRESPONDING JOURNAL ENTRY POSTED TO THE GENERAL LEDGER. THE RECONCILIATION WILL IDENTIFY THE PAYROLL PERIOD, EMPLOYEE, SOURCE PAYROLL AMOUNT, ALLOCATION METHODOLOGY, FUNDING SOURCE OR PROJECT, AND RESULTING JOURNAL ENTRY. A PREPARER AND AN INDEPENDENT REVIEWER WILL DOCUMENT COMPLETION AND APPROVAL, AND THE SUPPORTING DOCUMENTATION WILL BE RETAINED WITH THE JOURNAL ENTRY TO ENSURE ALLOCATED AMOUNTS CAN BE TRACED BACK TO THE ORIGINATING PAYROLL RECORDS. IN ADDITION, FINANCE WILL RECONCILE ON A MONTHLY BASIS, THE PAYROLL REPORTS FROM GUSTO TO THE GENERAL LEDGER, ENSURING THAT THE PAYROLL ENTRIES POSTED TO THE GL TIE DIRECTLY BACK TO THE PR REGISTER FOR THAT TIME PERIOD. THESE PAYROLL ENTRIES (FROM GUSTO) ARE THEN WHAT IS USED TO CREATE THE ALLOCATIONS. ANY UNEXPLAINED VARIANCE WILL BE RESOLVED BEFORE THE JOURNAL ENTRY IS FINALIZED

View Audit 410756

Finding 1229270 (2025-003)

Material Weakness 2025

Project Support Housing II

CO

HUD Housing Programs Subrecipient Monitoring Cash Management

Management has corrected this required deposit (on 4/21/2026). Management has assigned responsibility to a designated individual for monitoring residual receipts requirements and deadlines and banking restrictions. Required deposits to the Residual Account will be addressed and made whole within the...

Management has corrected this required deposit (on 4/21/2026). Management has assigned responsibility to a designated individual for monitoring residual receipts requirements and deadlines and banking restrictions. Required deposits to the Residual Account will be addressed and made whole within the full picture of the need to stabilize the project’s financial issues. Provide staff training on HUD regulatory requirements related to restricted accounts.

View Audit 410749

Finding 1229269 (2025-002)

Material Weakness 2025

Project Support Housing II

CO

HUD Housing Programs Internal Control / Segregation of Duties Cash Management

Management concurs with the auditor’s recommendations. The Organization experienced an extreme legal issue with one tenant that drained the checking account above the usual expenses in 2024 and 2025 plus lowered the revenue for the unit until the Organization could successfully evict the tenant from...

Management concurs with the auditor’s recommendations. The Organization experienced an extreme legal issue with one tenant that drained the checking account above the usual expenses in 2024 and 2025 plus lowered the revenue for the unit until the Organization could successfully evict the tenant from the property. This was an unusually aggressive and unethical tenant that used the system to inflict continuous financial hardships on the Organization. To remedy this situation, management noted there are no pending legal issues at this time or outstanding attorney charges and will: Submit proper documentation to HUD to request retroactive approval of transfer with HUD Funds Authorization. Management will be in contact with HUD on how to resolve the unauthorized transfer covering the extreme legal issue. This action will be addressed within the full picture of the need to stabilize the project’s physical and financial issues to ensure that the organization continues to function effectively. Implement internal controls to ensure that all future withdrawals from restricted account receive required HUD authorization prior to disbursement and banking restrictions. Provide staff training on HUD regulatory requirements related to restricted accounts.

View Audit 410749

Finding 1229268 (2025-002)

Material Weakness 2025

Housing Authority of the City of Athens, Alabama

AL

Significant Deficiency Internal Control / Segregation of Duties

Corrective Action Plan: The Housing Authority concurs with the recommendation. The Authority recognizes that limited accounting staff and competing operational demands contributed to delays in completing accurate unaudited multifamily submissions and timely identifying necessary adjusting entries. M...

Corrective Action Plan: The Housing Authority concurs with the recommendation. The Authority recognizes that limited accounting staff and competing operational demands contributed to delays in completing accurate unaudited multifamily submissions and timely identifying necessary adjusting entries. Management is implementing a sustainable solution that combines specialized technical assistance, documented procedures, staff training, and executive review. The Authority has begun reviewing the calendar year 2021 submission and compiling the financial records required for the outstanding 2022 through 2025 submissions. The Authority is seeking to retain an expert in HUD Multifamily and REAC financial reporting to assist staff in correcting prior submissions and preparing, validating, and submitting all required filings. The Authority will complete the following corrective actions: 1. Reconcile and validate the general ledger balances, trial balances, and supporting schedules for each affected reporting year. 2. Correct and resubmit the calendar year 2021 unaudited multifamily submission and prepare and submit the required unaudited multifamily submissions for calendar years 2022 through 2025. 3. Establish a written year-end closing and REAC submission calendar and checklist identifying responsible staff, required supporting schedules, due dates, and supervisory review before submission. 4. Provide appropriate staff training and require quarterly management review of balance-sheet reconciliations, audit-adjustment status, and HUD submission deadlines until the backlog is eliminated and the revised controls are operating effectively. hese measures are designed to address the Authority's limited staffing capacity while creating a practical and sustainable process for accurate financial reporting and timely HUD submissions.

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Finding 1229267 (2025-001)

Material Weakness 2025

Housing Authority of the City of Athens, Alabama

AL

Cash Management HUD Housing Programs Material Weakness

Corrective Action Plan: The Housing Authority concurs with the auditor's recommendation. The outstanding inter-entity balance has been identified as a legacy balance associated with the RAD conversion and the transfer of assets and liabilities to Athens Housing Management, LLC. Management's review a...

Corrective Action Plan: The Housing Authority concurs with the auditor's recommendation. The outstanding inter-entity balance has been identified as a legacy balance associated with the RAD conversion and the transfer of assets and liabilities to Athens Housing Management, LLC. Management's review and reconciliation of the balance are in progress. Before recording any final disposition, the Authority will determine the balance's origin, funding source, supporting documentation, legal obligation, and collectability, including whether federally restricted or RAD/PBRA project funds are involved. The Board of Commissioners may authorize the accounting disposition of the balance, subject to the Authority's governing documents and applicable law; however, a Board vote alone will not be treated as authority to forgive or extinguish a federally restricted or project-level receivable. The Authority will complete the following process: 1. Complete and document the reconciliation and proposed accounting treatment in both entities' records, with management and legal review, and provide the supporting documentation to the Authority's auditor. 2. Determine whether the balance is subject to the RAD closing documents, HAP Contract, RAD Use Agreement, Surplus Cash requirements, or other Federal restrictions. If so, submit the reconciliation, proposed entries, supporting documentation, and draft resolutions to the appropriate HUD Field Office or Multifamily Account Executive and obtain written direction or concurrence, as applicable. 3.Present conditional resolutions to the governing boards of the Housing Authority and Athens Housing Management, LLC, as applicable, authorizing the Chief Executive Officer to record the disposition only after all required HUD approvals or concurrences have been received. 4. Record corresponding entries in both entities, retain the complete reconciliation and approval package, and disclose the final resolution to the auditor. This process is consistent with 2 CFR §§ 200.302 and 200.303, which require accurate, supported financial records, accountability for Federal funds and assets, and documented internal controls. It also recognizes the RAD Notice requirements governing Surplus Cash and related-party advances. Going forward, inter-entity balances will be reconciled monthly, reviewed by management, and any unresolved items will be reported to the Chief Executive Officer as part of the monthly financial review.

View Audit 410746

Corrective Action Plans

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