Corrective Action Plans

Finding 1224121 (2025-002)

Material Weakness 2025

MN

Reporting Internal Control / Segregation of Duties § 200.502 § 200.510

SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS – ALL FEDERAL PROGRAMS 2025-002 Reporting Compliance Requirement – Schedule of Expenditures of Federal Awards (SEFA) Finding Summary 2 CFR § 200.510 requires that the City prepare appropriate annu...

SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS – ALL FEDERAL PROGRAMS 2025-002 Reporting Compliance Requirement – Schedule of Expenditures of Federal Awards (SEFA) Finding Summary 2 CFR § 200.510 requires that the City prepare appropriate annual financial statements, including the Schedule of Expenditures of Federal Awards (SEFA), which must include the total federal awards expended as determined in accordance with 2 CFR § 200.502. The City did not have proper controls in place to ensure completeness of the SEFA and compliance with this requirement. During our audit, we noted the City did not have sufficient controls in place to ensure the accurate preparation of the SEFA in compliance with this requirement. The City’s SEFA for fiscal 2025 was overstated by $147,700 in federal expenditures due to the inclusion of costs that were incurred in the previous fiscal year. Corrective Action Plan Actions Planned – The SEFA overstatement resulted from including prior-year expenditures in the 2025 reporting period. The City did not prepare a SEFA in the previous fiscal year because federal expenditures did not meet the Single Audit threshold; this contributed to the oversight in tracking the timing of eligible expenditures. To strengthen the year-end reporting process, the City has implemented updated procedures requiring a grant-level reconciliation of expenditures and revenues at year-end to ensure they are recorded in the proper fiscal period before preparing the SEFA. Federal grant coordinators and Finance Department staff will jointly review federal expenditures for accuracy and timing. This strengthened process will help ensure complete and accurate federal expenditure reporting in the SEFA. Official Responsible – Kim Sommerland, Finance Director. Planned Completion Date – June 30, 2026. Disagreement With or Explanation of Finding – The City agrees with the finding and has implemented additional procedures to strengthen controls over reporting. Plan to Monitor – The Finance Director will verify that year-end grant reconciliations are completed and reviewed prior to SEFA preparation.

View Audit 407506

Finding 1224115 (2025-001)

Material Weakness 2025

CITY OF FARMINGTON

MN

Procurement, Suspension & Debarment Internal Control / Segregation of Duties Questioned Costs § 200.318

SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE – U.S. DEPARTMENT OF THE TREASURY, COVID-19 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS (CSLFRF) – FEDERAL ALN 21.027 AND U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, ECONOMIC DEVELOPMENT INITIATIVE, COMMUNITY PROJECT FUNDING, AND...

SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE – U.S. DEPARTMENT OF THE TREASURY, COVID-19 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS (CSLFRF) – FEDERAL ALN 21.027 AND U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, ECONOMIC DEVELOPMENT INITIATIVE, COMMUNITY PROJECT FUNDING, AND MISCELLANEOUS GRANTS – FEDERAL ALN 14.251 2025-001 Internal Control Over Compliance With Federal Suspension and Debarment Requirements Finding Summary 2 CFR § 180 and 2 CFR § 200.318-327 requires City of Farmington, Minnesota (the City) to establish and maintain effective internal control over compliance with requirements applicable to federal program expenditures, including suspension and debarment requirements applicable to the Economic Development Initiative and CSLFRF federal programs. During our audit, we noted the City did not have sufficient controls in place within these programs to ensure compliance with federal requirements related to assuring that the City 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 City performed the required suspension and debarment verifications; however, documentation was not retained for two of the three vendors tested. To strengthen internal controls going forward, the City has implemented an updated procedure requiring staff to consistently retain documentation of suspension/debarment checks at the time of procurement for all federally funded contracts. This includes either (1) a SAM.gov screen print; (2) a copy of the contractor’s certification; or (3) a retained record of the method used. The Finance Director has reinforced this requirement with the responsible staff to ensure consistent and complete documentation going forward. Official Responsible – Kim Sommerland, Finance Director. Planned Completion Date – June 30, 2026. Disagreement With or Explanation of Finding – The City agrees documentation was not retained for two vendors. Plan to Monitor – The Finance Director will oversee compliance with the updated procedures and will conduct periodic spot checks to ensure documentation is consistently retained for all federally funded procurements.

View Audit 407506

Finding 1224113 (2025-002)

Material Weakness 2025

Duluth Airport Authority

MN

Subrecipient Monitoring Reporting § 200.303

Finding Number: 2025-002 Finding Title: Reporting – Federal Funding Accountability and Transparency Act (FFATA) Program: 14.218 Community Development Block Grants/Entitlement Grants Name of Contact Person Responsible for Corrective Action: Jenn Moses, Manager of Planning and Community Development Co...

Finding Number: 2025-002 Finding Title: Reporting – Federal Funding Accountability and Transparency Act (FFATA) Program: 14.218 Community Development Block Grants/Entitlement Grants Name of Contact Person Responsible for Corrective Action: Jenn Moses, Manager of Planning and Community Development Corrective Action Planned: • Update FFATA reporting by June 25, 2026 • Implement new procedures for monthly review of FFATA reporting with multiple team members Anticipated Completion Date: July 31, 2026

View Audit 407504

Finding 1224112 (2025-001)

Material Weakness 2025

Duluth Airport Authority

MN

Equipment & Real Property Management Internal Control / Segregation of Duties Questioned Costs § 200.303 § 200.313

Finding Number: 2025-001 Finding Title: Equipment and Real Property Management Program: 14.218 Community Development Block Grants/Entitlement Grants Name of Contact Person Responsible for Corrective Action: Jenn Moses, Manager of Planning and Community Development Corrective Action Planned: • Conduc...

Finding Number: 2025-001 Finding Title: Equipment and Real Property Management Program: 14.218 Community Development Block Grants/Entitlement Grants Name of Contact Person Responsible for Corrective Action: Jenn Moses, Manager of Planning and Community Development Corrective Action Planned: • Conduct a training for community development staff on federal regulations related to equipment and real property management • Assign specific employees oversight of equipment inventory • Coordinate with the finance department to ensure all CDBG assets are appropriately categorized within inventory • Implement monitoring protocol for yearly audit of the inventory Anticipated Completion Date: November 30, 2026

View Audit 407504

Finding 1224111 (2025-003)

Material Weakness 2025

Lutheran Family & Children's Services of Missouri, INC

MO

Matching / Level of Effort / Earmarking

Corrective Action Plan: THe LFCS program manager updated the Alternatives to Abortion Client Enrollment Requirements document to clarify required case manager documentation for client eligibility and the submission process for entry into the state database. The update was implemented by 06/04/2026. ...

Corrective Action Plan: THe LFCS program manager updated the Alternatives to Abortion Client Enrollment Requirements document to clarify required case manager documentation for client eligibility and the submission process for entry into the state database. The update was implemented by 06/04/2026. The document will be completed, signed and dated by the case manager/social worker. Before the documentation is submitted to the data entry clerk, the case manager/social worker’s supervisor or program manager will verify the needed proofs are uploaded in Apricot along with verifying the funding sources selected in the Program Intake. After the supervisor/program manager verifies that all required proofs are uploaded and the correct funding sources are selected, if there are multiple funders, they will write which ones on the document, initial it and then they will submit the form to the data entry clerk. The data entry clerk will enter the new client into the state database on or before the 15th of the following month.

View Audit 407497

Finding 1224110 (2025-002)

Material Weakness 2025

Lutheran Family & Children's Services of Missouri, INC

MO

Matching / Level of Effort / Earmarking

Corrective Action Plan: THe LFCS program manager updated the Alternatives to Abortion Client Enrollment Requirements document to clarify required case manager documentation for client eligibility and the submission process for entry into the state database. The update was implemented by 06/04/2026.T...

Corrective Action Plan: THe LFCS program manager updated the Alternatives to Abortion Client Enrollment Requirements document to clarify required case manager documentation for client eligibility and the submission process for entry into the state database. The update was implemented by 06/04/2026.The document will be completed, signed and dated by the case manager/social worker. Before the documentation is submitted to the data entry clerk, the case manager/social worker’s supervisor or program manager verifies that all required proofs are uploaded, they will initial the form and then they will submit the form to the data entry clerk. The data entry clerk will enter the new client into the state database on or before the 15th of the following month

View Audit 407497

Finding 1224109 (2025-001)

Material Weakness 2025

Lutheran Family & Children's Services of Missouri, INC

MO

Allowable Costs / Cost Principles

Corrective Action Plan: In our opinion, the matter resulted in human error and does not rise to the level of a finding. We believe the matter would be more appropriately addressed through disclosure in the financial statement footnotes rather than being reported as a finding. The Revenue Manager wil...

Corrective Action Plan: In our opinion, the matter resulted in human error and does not rise to the level of a finding. We believe the matter would be more appropriately addressed through disclosure in the financial statement footnotes rather than being reported as a finding. The Revenue Manager will enter the salaries from the payroll register into the allocation spreadsheet. The Sr. Accounting Manager will review the salaries and sign off on the allocation spreadsheet confirming the accuracy of the salaries.

View Audit 407497

Finding 1224108 (2025-007)

Material Weakness 2025

Littlefield Unified School District No. 9

AZ

Reporting Internal Control / Segregation of Duties § 200.303

2025-007: REPORTING REQUIREMENTS Program: Public Safety Partnership and Community Policing Grants Federal Assistance Listing Number: 16.710 Federal Agency: U.S. Department of Justice Pass-Through Agency: Direct award Grantor Number: 15JCOPS-24-GG-03437-SSIX Questioned Costs: $-0- Type of Finding: No...

2025-007: REPORTING REQUIREMENTS Program: Public Safety Partnership and Community Policing Grants Federal Assistance Listing Number: 16.710 Federal Agency: U.S. Department of Justice Pass-Through Agency: Direct award Grantor Number: 15JCOPS-24-GG-03437-SSIX Questioned Costs: $-0- Type of Finding: Noncompliance (Other Matter), significant deficiency in internal control Compliance Requirement: L. Reporting Condition: The District did not prepare and submit the required Federal Financial Report (SF-425) associated with its COPS School Violence Prevention Program (SVPP) grant. During audit testing, the District was unable to provide evidence that the SF-425 had been completed or submitted to the grantor. Additionally, the District could not provide supporting documentation demonstrating that a final financial report, reimbursement request, or other required grant closeout reporting had been prepared and submitted in accordance with the grant terms and conditions. The District lacked adequate internal controls to ensure required federal reports were identified, prepared, reviewed, retained, and submitted timely. Action planned in response to finding: The District will ensure all appropriate financial reports are submitted in compliance with the Uniform Guidance and grant applications. Planned completion date for corrective action plan: For the period ending June 30, 2026. Name of the contact person responsible for corrective action: Edward Dickie, Business Manager.

View Audit 407495

Finding 1224107 (2025-006)

Material Weakness 2025

Littlefield Unified School District No. 9

AZ

School Nutrition Programs Questioned Costs Subrecipient Monitoring

2025-006: STUDENT MEAL APPLICATIONS Program: Child Nutrition Cluster Federal Assistance Listing Number: 10.553, 10.555, 10.559 Federal Agency: U.S. Department of Agriculture Pass-Through Agency: Arizona Department of Education Grantor Number: ADE ED09-0001 Questioned Costs: $-0- Type of Finding: Non...

2025-006: STUDENT MEAL APPLICATIONS Program: Child Nutrition Cluster Federal Assistance Listing Number: 10.553, 10.555, 10.559 Federal Agency: U.S. Department of Agriculture Pass-Through Agency: Arizona Department of Education Grantor Number: ADE ED09-0001 Questioned Costs: $-0- Type of Finding: Noncompliance (Other Matter), significant deficiency in internal control Compliance Requirement: E. Eligibility Condition: During our testing of eligibility determinations under the Child Nutrition Cluster, we selected 40 student meal applications for review. Of the 40 applications tested, two applications were incorrectly classified based on the information provided on the applications. Specifically, one application was approved as free when it should have been approved as reduced, and one application was approved as reduced when it should have been approved as paid based on applicable eligibility guidelines. Action planned in response to finding: The District will ensure nutrition applications are reviewed to determine they meet the appropriate classification criteria. In addition, applications will be reviewed and approved by someone other than the initial individual that is recording the classification type. Planned completion date for corrective action plan: For the period ending June 30, 2026. Name of the contact person responsible for corrective action: Edward Dickie, Business Manager.

View Audit 407495

Finding 1224104 (2025-005)

Material Weakness 2025

Littlefield Unified School District No. 9

AZ

Procurement, Suspension & Debarment § 200.318 § 200.327

2025-005: FEDERAL PROCUREMENT PROCEDURES Program: Child Nutrition Cluster Federal Assistance Listing Number: 10.553, 10.555, 10.559 Federal Agency: U.S. Department of Agriculture Pass-Through Agency: Arizona Department of Education Grantor Number: ADE ED09-0001 Questioned Costs: $-0- Type of Finding...

2025-005: FEDERAL PROCUREMENT PROCEDURES Program: Child Nutrition Cluster Federal Assistance Listing Number: 10.553, 10.555, 10.559 Federal Agency: U.S. Department of Agriculture Pass-Through Agency: Arizona Department of Education Grantor Number: ADE ED09-0001 Questioned Costs: $-0- Type of Finding: Noncompliance (Other Matter), significant deficiency in internal control Compliance Requirement: I. Procurement, Suspension, and Debarment Condition: During testing of procurement activities within the Child Nutrition Cluster, we selected three purchases for review. For all three purchases tested, the District did not perform and document the procurement procedures required under federal regulations to obtain written price quotations. Specifically, the District was unable to provide evidence demonstrating that applicable procurement requirements, including obtaining and documenting competition as required by federal procurement standards, were followed prior to making the purchases. Action planned in response to finding: The District will ensure proper bidding procedures are followed for all purchases exceeding $10,000 in compliance with the Uniform System of Financial Records (USFR) and federal compliance. Planned completion date for corrective action plan: For the period ending June 30, 2026. Name of the contact person responsible for corrective action: Edward Dickie, Business Manager.

View Audit 407495

Finding 1224101 (2025-003)

Material Weakness 2025

City of Wichita

KS

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

Finding The City did not verify correction of Housing Quality Standards (HQS) deficiencies within required timeframes and did not timely initiate Housing Assistance Payment (HAP) abatement when corrective action was not completed. Corrective Action Planned A process to monitor Quality Control inspec...

Finding The City did not verify correction of Housing Quality Standards (HQS) deficiencies within required timeframes and did not timely initiate Housing Assistance Payment (HAP) abatement when corrective action was not completed. Corrective Action Planned A process to monitor Quality Control inspections performed by the third-party inspection contractor was implemented in 2026 to ensure compliance with required inspection and enforcement timelines. Contact Person Nicole Babcock Anticipated Completion Date Implemented June 2026; ongoing monitoring thereafter.

View Audit 407494

Finding 1224098 (2025-002)

Material Weakness 2025

City of Wichita

KS

Reporting Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

Finding Documentation was not retained to evidence management review and approval of PR-29 reports prior to submission. Corrective Action Planned The process was enhanced for 2026 to include documented review and approval of quarterly PR-29 reporting, by the Housing Finance Manager, prior to submiss...

Finding Documentation was not retained to evidence management review and approval of PR-29 reports prior to submission. Corrective Action Planned The process was enhanced for 2026 to include documented review and approval of quarterly PR-29 reporting, by the Housing Finance Manager, prior to submission. Contact Person Nicole Babcock Anticipated Completion Date Implemented June 2026; ongoing monitoring thereafter.

View Audit 407494

Finding 1224096 (2025-001)

Material Weakness 2025

City of Wichita

KS

Allowable Costs / Cost Principles Significant Deficiency Matching / Level of Effort / Earmarking § 200.303 § 200.430

Finding Timesheets charged to federal programs were processed without documented supervisory approval in certain instances. Corrective Action Planned In 2026 and going forward, all staff and Department Director timesheets will be approved by an independent supervisor prior to payroll processing. Con...

Finding Timesheets charged to federal programs were processed without documented supervisory approval in certain instances. Corrective Action Planned In 2026 and going forward, all staff and Department Director timesheets will be approved by an independent supervisor prior to payroll processing. Contact Person Nicole Babcock Anticipated Completion Date Implemented June 2026; ongoing monitoring thereafter.

View Audit 407494

Finding 1224091 (2025-003)

Material Weakness 2025

Thomas University, Inc.

GA

Student Financial Aid

Responsible Official’s Response and Corrective Action Planned: We agree with the finding and recommendations.  All monies owed, will be paid back to the department.  Thomas University is actively searching for a qualified individual to fill the role of Director of Financial Aid, and interview is b...

Responsible Official’s Response and Corrective Action Planned: We agree with the finding and recommendations.  All monies owed, will be paid back to the department.  Thomas University is actively searching for a qualified individual to fill the role of Director of Financial Aid, and interview is being held with a high potential candidate on Friday June 25, 2026.  Thomas University will revise and document Return of Title IV Funds procedure to ensure calculations are completed in accordance with 34 CFR 668.22 requirements.  Establish standardized processes for determining withdrawal dates, enrollment status, and earned versus unearned Title IV aid.  A secondary review process requiring a qualified financial aid administrator to review and approve all calculations before funds are returned or adjustments are processed.  Increase coordination between Financial Aid office, Registrar Office, and Business office to endure timely communication of attendance and withdrawal information.  Staff will be required to participate in periodic federal compliance training and regulatory update sessions. Planned Implementation Date of Corrective Action: December 31, 2026. Person Responsible for Corrective Action: Kurt Stringfellow, President

View Audit 407493

Finding 1224084 (2025-001)

Material Weakness 2025

Southeast Childhood Collective

AK

Reporting Significant Deficiency § 200.512

Financial Statement Findings Finding 2025-001 Lack of Internal Controls over Reporting and Noncompliance Name of Contact Person: Blue Shibler, Executive Director Corrective Action Plan: Now that SCC understands the time required to secure an available audit firm and complete the audit process, SCC w...

Financial Statement Findings Finding 2025-001 Lack of Internal Controls over Reporting and Noncompliance Name of Contact Person: Blue Shibler, Executive Director Corrective Action Plan: Now that SCC understands the time required to secure an available audit firm and complete the audit process, SCC will begin audit planning immediately after the close of each fiscal year. The Executive Director will be responsible for identifying and engaging an audit firm as early as possible, promptly providing requested financial records, and monitoring the audit timeline to support timely completion and filling in the future years. Proposed Completion Date: Fiscal Year 2026.

View Audit 407485

Finding 1224083 (2025-005)

Material Weakness 2025

Isaac Elementary School District No. 5

AZ

Internal Control / Segregation of Duties Questioned Costs Cash Management

2025-005: REPORTING Program: Child Nutrition Cluster Federal Assistance Listing Number: 10.553, 10.555, 10.559 Federal Agency: U.S. Department of Agriculture Pass-Through Agency: Arizona Department of Education Grantor Number: ADE ED09-0001 Questioned Costs: $-0- Type of Finding: Noncompliance (Othe...

2025-005: REPORTING Program: Child Nutrition Cluster Federal Assistance Listing Number: 10.553, 10.555, 10.559 Federal Agency: U.S. Department of Agriculture Pass-Through Agency: Arizona Department of Education Grantor Number: ADE ED09-0001 Questioned Costs: $-0- Type of Finding: Noncompliance (Other Matter), significant deficiency in internal control Compliance Requirement: L. Reporting Condition/Context: During our review of meals claims submitted for reimbursement, we noted variances between the District’s meal counts and what was submitted to the Arizona Department of Education. For four months tested, meals claims were net under-reported by 10,403 lunch and breakfast meals, which calculated to $3,616.29. Additionally, for three of 4 months tested, the District did not maintain any documentation to support that the claims were reviewed by a second person. Action planned in response to finding: The District will ensure a second employee verifies and approves all NSLP Claim forms to ensure the claims submitted are accurate and complete prior to submission. Planned completion date for corrective action plan: For the period ending June 30, 2026. Name of the contact person responsible for corrective action: Jim Serbin, CFO.

View Audit 407484

Finding 1224080 (2025-004)

Material Weakness 2025

Isaac Elementary School District No. 5

AZ

Procurement, Suspension & Debarment § 200.318 § 200.327

2025-004: FEDERAL PROCUREMENT PROCEDURES Program: Child Nutrition Cluster Federal Assistance Listing Number: 10.553, 10.555, 10.559 Federal Agency: U.S. Department of Agriculture Pass-Through Agency: Arizona Department of Education Grantor Number: ADE ED09-0001 Questioned Costs: $-0- Type of Finding...

2025-004: FEDERAL PROCUREMENT PROCEDURES Program: Child Nutrition Cluster Federal Assistance Listing Number: 10.553, 10.555, 10.559 Federal Agency: U.S. Department of Agriculture Pass-Through Agency: Arizona Department of Education Grantor Number: ADE ED09-0001 Questioned Costs: $-0- Type of Finding: Noncompliance (Other Matter), significant deficiency in internal control Compliance Requirement: I. Procurement, Suspension, and Debarment Condition: During testing of procurement activities within the Child Nutrition Cluster, we selected three purchases for review. For all three purchases tested, the District did not perform and document the procurement procedures required under federal regulations to obtain written price quotations. Specifically, the District was unable to provide evidence demonstrating that applicable procurement requirements, including obtaining and documenting competition as required by federal procurement standards, were followed prior to making the purchases. Action planned in response to finding: The District will ensure proper bidding procedures are followed for all purchases exceeding $10,000 in compliance with the Uniform System of Financial Records (USFR) and federal compliance. Planned completion date for corrective action plan: For the period ending June 30, 2026. Name of the contact person responsible for corrective action: Jim Serbin, CFO.

View Audit 407484

Finding 1224055 (2025-001)

Material Weakness 2025

Three Oaks Homeless Shelter, INC

MD

Questioned Costs Reporting § 200.512

Finding 2025-001 – Noncompliance – Reporting (Repeat) Recommendation: The auditors recommend the Organization implement procedures to ensure the data collection form is submitted within the earlier of 30 calendar days of the audit report being issues, or 9 months after the end of the audit period. A...

Finding 2025-001 – Noncompliance – Reporting (Repeat) Recommendation: The auditors recommend the Organization implement procedures to ensure the data collection form is submitted within the earlier of 30 calendar days of the audit report being issues, or 9 months after the end of the audit period. Actions Taken or Planned: Management understands the data collection form was not submitted within 9 months of June 30th year end. Procedures will be implemented to make sure the audit is completed prior to the 9 month deadline. Data collection forms will then be uploaded to the Federal Audit Clearinghouse prior to the 9 month deadline or within 30 days of the audit report being issued. Name of Contact Person: Larissa Dickens, Director of Finance Estimated Date of Completion: June 30, 2026

View Audit 407463

Finding 1224036 (2025-005)

Material Weakness 2025

City of El Monte

CA

Questioned Costs Procurement, Suspension & Debarment Significant Deficiency

The Finance Staff will collaborate with Police Department Staff during the budgeting process to ensure that revenue is not inappropriately budgeted. Personnel responsible for implementation: Carmen Tsui, Grant Accountant Completion Date: June 30, 2026

View Audit 407460

Finding 1224035 (2025-004)

Material Weakness 2025

City of El Monte

CA

Reporting § 200.1

The Finance Staff will perform quarterly reconciliations of expenditures to ensure accurate reporting of amounts. Personnel responsible for implementation: Carmen Tsui, Grant Accountant Completion Date: June 30, 2026

View Audit 407460

Finding 1224034 (2025-003)

Material Weakness 2025

City of El Monte

CA

Reporting Procurement, Suspension & Debarment Significant Deficiency

The Accounting Manager assumed responsibility for the quarterly Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) reporting process following the unexpected departure of the former Finance Director. Due to the abrupt transition and issues associated with obtaining access to the portal, the ...

The Accounting Manager assumed responsibility for the quarterly Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) reporting process following the unexpected departure of the former Finance Director. Due to the abrupt transition and issues associated with obtaining access to the portal, the entity experienced a delay in submitting the Q1 2025 Project and Expenditure Report by the required deadline. Management acknowledges the importance of timely compliance with federal reporting requirements. Since access to the Treasury reporting portal was established, all subsequent Project and Expenditure Reports have been submitted timely. Personnel responsible for implementation: Veronica Alvarez, Deputy Finance Director Completion Date: June 30, 2026

View Audit 407460

Finding 1224033 (2025-002)

Material Weakness 2025

City of El Monte

CA

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring

The Finance Department staff will review all items prior to completing the report. Personnel responsible for implementation: Carmen Tsui, Grant Accountant Completion Date: June 30, 2026

View Audit 407460

Finding 1224032 (2025-001)

Material Weakness 2025

City of El Monte

CA

Subrecipient Monitoring Procurement, Suspension & Debarment Material Weakness

The Housing Manager and Management Analyst/Grant Writer are collaboratively working to ensure FFATA reports are completed prior to disbursing funds to subawardees. Personnel responsible for implementation Vanessa Sedano, Housing Manager Completion Date: June 30, 2026

View Audit 407460

Finding 1224031 (2025-001)

Material Weakness 2025

Depelchin Children's Center

TX

Eligibility Subrecipient Monitoring Reporting

June 25, 2026 Dear Cognizant or Oversight Agency for Audit: DePelchin Children’s Center (DePelchin) respectfully submits the following corrective action plan for the year ended December 31, 2025. Name and address of independent public accounting firm: Doeren Mayhew Assurance, 2600 North Loop West, S...

June 25, 2026 Dear Cognizant or Oversight Agency for Audit: DePelchin Children’s Center (DePelchin) respectfully submits the following corrective action plan for the year ended December 31, 2025. Name and address of independent public accounting firm: Doeren Mayhew Assurance, 2600 North Loop West, Suite 600, Houston, TX 77092. The finding discussed below from the Schedule of Findings and Questioned Costs (the schedule) for the year ended December 31, 2025 is numbered consistently with the number assigned in the schedule. Federal Award Finding 2025-001 Corrective Action Plan: DePelchin has implemented an internal review process whereby a grant specialist on the evaluation team conducts a monthly review of all enrollments to verify that eligibility requirements, including priority characteristics and service area criteria, have been met. Program staff, evaluation staff, and data team members have been provided additional training on the applicable eligibility requirements and documentation standards. Additionally, DePelchin has implemented an annual cross-functional review process involving program leadership, evaluation staff, and fiscal representatives to review eligibility requirements and key contract provisions prior to the start of each fiscal year. This review is intended to ensure that any changes in program requirements are identified, communicated, and incorporated into program operations in a timely manner. Based on these corrective actions and enhanced monitoring procedures, DePelchin believes the risk of similar eligibility documentation issues has been substantially mitigated. Contact Person Responsible for Corrective Action: Mr. Brian Pate, Senior VP and CFO Anticipated Completion Date: The corrective action plan is anticipated to be completed by October 31, 2026. Respectfully submitted, Mr. Brian Pate Senior VP and CFO

View Audit 407456

Finding 1224030 (2025-002)

Material Weakness 2025

City of Harper Woods

MI

Procurement, Suspension & Debarment Subrecipient Monitoring Equipment & Real Property Management

Finding 2025-002 – Significant Deficiency and Noncompliance - Lack of Required Uniform Guidance Policies and Procedures Condition: The City did not update their federal policies and procedures to be in full compliance with Uniform Guidance. Corrective Action: The City is in the process of updating a...

Finding 2025-002 – Significant Deficiency and Noncompliance - Lack of Required Uniform Guidance Policies and Procedures Condition: The City did not update their federal policies and procedures to be in full compliance with Uniform Guidance. Corrective Action: The City is in the process of updating and adopting written policies and procedures that are in compliance with Uniform Guidance. Anticipated Completion Date: December 31, 2026 Responsbile Official: John Szymanski, City Manager

View Audit 407449

Corrective Action Plans

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