Corrective Action Plans

Finding 1223268 (2025-001)

Material Weakness 2025

City of La Habra

CA

Procurement, Suspension & Debarment

The Finance Department will ensure that all departments are aware of this compliance requirement and perform vendor verification before the City enters into a covered transaction. All departments will verify and have a printout of the vendor verification printed from SAM.GOV that an entity is not de...

The Finance Department will ensure that all departments are aware of this compliance requirement and perform vendor verification before the City enters into a covered transaction. All departments will verify and have a printout of the vendor verification printed from SAM.GOV that an entity is not debarred, suspended, or otherwise excluded before the City enters into a covered transaction.

View Audit 406755

Finding 1223267 (2025-003)

Material Weakness 2025

Greater Baton Rouge Food Bank

LA

Reporting

Management agrees with the finding. Management will implement additional procedures to identify all federal awards received and expended during the year. Management will also enhance its review of commodity usage and noncash assistance reported on the SEFA by reconciling amounts to inventory records...

Management agrees with the finding. Management will implement additional procedures to identify all federal awards received and expended during the year. Management will also enhance its review of commodity usage and noncash assistance reported on the SEFA by reconciling amounts to inventory records and reported submitted to the Louisiana Department of Agriculture and Forestry. Management will develop a formal SEFA preparation and review process, including reconciliation procedures and supervisory review prior to providing the SEFA for audit.

View Audit 406753

Finding 1223263 (2025-001)

Material Weakness 2025

Hancock County, Illinois

IL

Subrecipient Monitoring Internal Control / Segregation of Duties

Corrective Action Plan The County Board will continue to review all claims provided to them. Anticipated Completion Date The County is not in a financial position to hire additional employees. The increased monitoring will begin December 1, 2025. Responsible Parties Mark Menn, County Board Chairman ...

Corrective Action Plan The County Board will continue to review all claims provided to them. Anticipated Completion Date The County is not in a financial position to hire additional employees. The increased monitoring will begin December 1, 2025. Responsible Parties Mark Menn, County Board Chairman 500 Main Street, P.O. Box 248 Carthage, Illinois 62321 (217) 357-3986 Kris Pilkington, County Treasurer 500 Main Street, P.O. Box 248 Carthage, Illinois 62321 (217) 357-3986 Holly Wilde-Tillman, County Clerk 500 Main Street, P.O. Box 248 Carthage, Illinois 62321 (217) 357-3911

View Audit 406751

Finding 1223248 (2025-002)

Material Weakness 2025

Tca Health, Inc.

IL

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

Allowable Costs and Activities Condition: Payroll costs were allocated to grants in a manner inconsistent with the time and effort documentation provided. Recommendation: Management should reinforce the requirement to retain time and effort documentation for all employees that are allocated to multi...

Allowable Costs and Activities Condition: Payroll costs were allocated to grants in a manner inconsistent with the time and effort documentation provided. Recommendation: Management should reinforce the requirement to retain time and effort documentation for all employees that are allocated to multiple grants and implement a review process whereby the allocation percentages used are compared to the employee attestations provided. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: TCA Health is enhancing its time and effort and payroll allocation processes to ensure charges to grants align with documented effort. We are building on our monthly review process for time and effort by formalizing a review in which payroll allocation percentages are compared to signed attestations, with Finance documenting any corrections and follow-up. We are also partnering with HR to ensure all Personnel Action Forms (PAFs) include appropriate grant coding and to require an updated PAF whenever an employee’s grant funding or allocation changes. In addition, TCA Health is implementing an automated integration between ADP and Sage Intacct so that approved timesheets flow directly into payroll and grant reporting, improving accuracy and the audit trail. We will leverage the systems and limit manual entry. Name(s) of the contact person(s) responsible for corrective action: Bob Van Gilder Planned completion date for corrective action plan: 9/1/26 If the U.S. Departments above have questions regarding this plan, please call Veronica Clarke, Chief Executive Office, at 773-928-5090.

View Audit 406748

Finding 1223247 (2025-001)

Material Weakness 2025

Tca Health, Inc.

IL

Questioned Costs Eligibility Special Tests & Provisions

Special Tests and Provisions Condition: The Organization did not maintain documentation to show that patients had been evaluated for eligibility under its sliding fee scale policy and did not apply sliding fee adjustments consistent with the sliding fee scale assigned. Recommendation: Management sho...

Special Tests and Provisions Condition: The Organization did not maintain documentation to show that patients had been evaluated for eligibility under its sliding fee scale policy and did not apply sliding fee adjustments consistent with the sliding fee scale assigned. Recommendation: Management should continue to provide training and education to front desk staff related to the process for collecting family size and income information, along with inputting it into the electronic medical records. We also recommend enhancing any current internal audits of patient visits to determine all required patient information has been obtained in accordance with TCA’s policies. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: TCA Health is strengthening controls over its sliding fee discount program. Effective FY26 (April 11, 2026), Epic will require entry of family size and income and will apply the appropriate discount based on the approved sliding fee schedule, reducing the risk of missing or incorrect discounts. Staff training on sliding fee policies and Epic workflows has been reinforced and will be refreshed at least quarterly. TCA Health will also conduct monthly audits of encounters to confirm required documentation is on file and discounts are applied in accordance with the sliding fee scale, and will use results to drive targeted follow-up and process improvements. We will increase the audit to include the total population vs. a sample when reviewing. Name(s) of the contact person(s) responsible for corrective action: Samantha O. Mitchell Planned completion date for corrective action plan: 9/1/26

View Audit 406748

Finding 1223242 (2025-001)

Material Weakness 2025

Flossmoor School District 161

IL

Allowable Costs / Cost Principles Questioned Costs § 200.403 § 200.438

Identifying Number: 2025-001 Finding: Material Weakness in Internal Control and Material Noncompliance, Activities Allowed or Unallowed and Allowable Costs/Cost Principles Corrective Actions Taken or Planned: While the ARP ESSER Federal programs are no longer funded, there are other Federal programs...

Identifying Number: 2025-001 Finding: Material Weakness in Internal Control and Material Noncompliance, Activities Allowed or Unallowed and Allowable Costs/Cost Principles Corrective Actions Taken or Planned: While the ARP ESSER Federal programs are no longer funded, there are other Federal programs that the District receives funding from. Therefore, the administrators in the District who apply and write the grants, specifically the Director of Learning & Instruction, Amabel Crawford, and the Director of Student Support Services, Jackie Janicke, will continue to participate, effective July 1, 2025, in all trainings from the Illinois State Board of Education regarding the programs they have applied for and will additionally confirm that the expenditures written into the grant are allowable under the federal guidelines for each program.

View Audit 406744

Finding 1223234 (2025-001)

Material Weakness 2025

Legal Services of the Virgin Islands, Inc.

VI

Equipment & Real Property Management Questioned Costs

Physical Inventory Name of Contact Person: Kenneth M. Guye, Director of Finance/Administration Corrective Action: The Physical Inventory will commence immediately and is expected to finish by May 10, 2026. Proposed Completion Date: May 10, 2026

View Audit 406732

Finding 1223233 (2025-001)

Material Weakness 2025

Grid Alternatives

CA

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Corrective Action Plan: The Organization concurs with this finding and has implemented enhanced internal controls to ensure all timesheets charged to federal awards are properly reviewed and approved in accordance with policy; specifically, The Organization has established a requirement that all tim...

Corrective Action Plan: The Organization concurs with this finding and has implemented enhanced internal controls to ensure all timesheets charged to federal awards are properly reviewed and approved in accordance with policy; specifically, The Organization has established a requirement that all timecards must be reviewed and approved no later than the fifth day following each pay date, supported by monitoring procedures to track completion and identify any exceptions, and has also implemented a formal delegation protocol requiring supervisors to designate an alternate qualified approver when they are unavailable to ensure approvals occur timely and consistently. Person responsible for corrective action: Tamara Robinson Crayton - Controller Anticipated Completion Date: Initial implementation is in place by June 2026.

View Audit 406731

Finding 1223227 (2025-001)

Material Weakness 2025

Jefferson County Government

CO

Eligibility Questioned Costs Subrecipient Monitoring § 200.303

AUDITOR FINDING: 2025-001 Eligibility. We noted the following issues in the 25 cases tested: 1. One instance in which client income was incorrectly entered and as such, was ineligible for benefits as they were over the income limits for all of 2025. 2. Three instances in which, although case notes i...

AUDITOR FINDING: 2025-001 Eligibility. We noted the following issues in the 25 cases tested: 1. One instance in which client income was incorrectly entered and as such, was ineligible for benefits as they were over the income limits for all of 2025. 2. Three instances in which, although case notes indicated general contact with the participant, the County did not retain sufficient documentation that a required meeting specifically addressed or confirmed engagement in an eligible work activity or was completed within required timeframe. Recommendation: We recommend that the County continue to strengthen internal controls related to eligibility determinations. This includes issuing training alerts related to the differences of subsidized and unsubsidized employment income and the impacts to eligibility. Additionally, we recommend continued periodic quality assurance reviews of TANF case files to ensure ongoing compliance with federal and state eligibility requirements and identification of employees with performance issues. Finally, we recommend the County develop monitoring reports to identify those clients who have not had a workforce contact in the required timeframe. CLIENT PLANNED ACTION: Jefferson County agrees with the findings and has taken or will take the following steps to address the errors. The findings were caused by workers on both the eligibility and workforce teams so varying measures will be implemented based on the finding and responsible team. Jefferson County will continue and implement the following actions to address and prevent future findings. • Eligibility Team Actions o Jefferson County will issue a training alert to all eligibility staff by June 20, 2026, detailing the difference between subsidized and unsubsidized employment, correct data entry, and the impact of each on TANF eligibility. o To monitor compliance, the County will continue completing Internal Quality Assurance reviews utilizing the state mandated list to assess the case and payment accuracy. • Workforce Development Team Actions o Performance concerns related to inconsistent client contact and incomplete documentation were identified during regular performance reviews in January 2026 and have been successfully addressed via the county Employee Relations coaching and disciplinary framework. •To monitor compliance, the County will continue completing Internal Quality Assurance reviews utilizing the state mandated list. In addition, Colorado Works Supervisors review at least one case per worker each month. Beginning in June 2026, the number will be increased to a minimum of 10 cases per month if a performance concern is identified. o Tableau reports have been created or enhanced to monitor compliance. • Individual case worker accuracy reports for all IQA and Supervisor reviews were released in March 2026. Progress reviews have been incorporated into monthly supervision meetings with staff. • Enhancement to report titled, Cases Needing Action, which tracks data entry of client contact and Individual Plan development in CBMS was completed on June 1, 2026. Workers will now be notified if client contact exceeds 30 days. Workers and supervisors will review the report monthly and take proactive measures for client contact prior to exceeding rule requirement of 90 days. CLIENT RESPONSIBLE PARTY: CW Eligibility Team: Julia Zoukhri (Program Manager), Brandy Brogan (Program Manager), Karen Thomas (Program Manager) and Jennifer Martinez (Quality Assurance & Systems Administrator) CW Workforce Development Team: Tara Noble (Program Manager), Kathryn Boyd-Cordova (CW Supervisor), and Erin Encinias (CW Supervisor) COMPLETION DATE: July 2026

View Audit 406726

Finding 1223226 (2025-002)

Material Weakness 2025

Town of Westport

IN

Internal Control / Segregation of Duties § 200.303

FINDING 2025-002 Finding Subject: Water and Waste Disposal Systems for Rural Communities - Reporting Contact Person Responsible for Corrective Action: Gloria Alumbaugh Contact Phone Number and Email Address: 812-591-3500 and townofwestport@comcast.net Views of Responsible Officials: We concur with t...

FINDING 2025-002 Finding Subject: Water and Waste Disposal Systems for Rural Communities - Reporting Contact Person Responsible for Corrective Action: Gloria Alumbaugh Contact Phone Number and Email Address: 812-591-3500 and townofwestport@comcast.net Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The Clerk Treasurer will ensure that a review process is in place when completing the RD442-2 (Statement of Budget, Income and Equity) and the RD442-3 (Balance Sheet) for the annual USDA reports. The Clerk Treasurer will complete the RD442-2 and RD442-3 forms with working papers and reports to support the information reported on the forms. Then the Deputy Clerk will review the working papers and reports to verify the same results reported on the forms, before signing off on approval of the form, ensuring two signatures are included on the official forms before submittal to USDA each year. Anticipated Completion Date: The next annual USDA reports will be completed by March 1, 2027. INDIANA STATE

View Audit 406718

Finding 1223214 (2025-001)

Material Weakness 2025

Prairie Ridge Integrated Behavioral Healthcare

IA

Internal Control / Segregation of Duties

We are aware of the condition and will review procedures to make changes when appropriate and cost effective.

View Audit 406704

Finding 1223174 (2025-001)

Material Weakness 2025

Centre Care, Inc.

PA

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

Views of Responsible Officials and Planned Corrective Actions Centre Care acknowledges the 2024 Uniform Guidance Audit report was submitted late to the Federal Audit Clearinghouse. Centre Care was in the process of negotiating with the USDA related to another loan agreement and financial statements ...

Views of Responsible Officials and Planned Corrective Actions Centre Care acknowledges the 2024 Uniform Guidance Audit report was submitted late to the Federal Audit Clearinghouse. Centre Care was in the process of negotiating with the USDA related to another loan agreement and financial statements were reissued to alleviate the going concern impacting the timing of reporting. In addition, our consulting team (CHR) incurred transition within the accounting team and as a result the reporting deadline was not communicated to the new team, and the reporting deadline was missed. Corrective Action Plan: Centre Care already remedied this issue in 2026 by submitting the reporting package and data collection form for the year ended December 31, 2024, and the data collection form process has been started for the December 31, 2025, audit and will be submitted upon finalizing the audit report in accordance with Uniform Guidance requirements.

View Audit 406690

Finding 1223173 (2025-002)

Material Weakness 2025

City of Lafayette

IN

Subrecipient Monitoring

FINDING 2025-002 Contact Person Responsible for Corrective Action: Jeremy Diehl Contact Phone Number: 765-807-1011 Views of Responsible Official: Concurred Description of Corrective Action Plan: The Lafayette Housing Authority concurs with this finding. During 2026, the Lafayette Housing Authority i...

FINDING 2025-002 Contact Person Responsible for Corrective Action: Jeremy Diehl Contact Phone Number: 765-807-1011 Views of Responsible Official: Concurred Description of Corrective Action Plan: The Lafayette Housing Authority concurs with this finding. During 2026, the Lafayette Housing Authority initiated the development of formal inspection and long-term compliance procedures for HOME-assisted properties. These procedures will establish inspection frequency requirements, inspection scheduling protocols, documentation standards, and follow-up procedures for identified deficiencies throughout the affordability period. Inspection tracking logs, compliance monitoring forms, and reporting tools are being developed to ensure required inspections are scheduled, completed, and documented timely. A review of all HOME-assisted properties will be conducted to establish and maintain an inspection schedule for the remaining affordability periods. The Executive Director and HOME Program Administrator will oversee implementation of the procedures, staff training, inspection tracking, and periodic compliance reviews to ensure ongoing compliance with 24 CFR § 92.209(i), § 92.251(f) & § 92.504(d). Anticipated Completion Date: December 31, 2026

View Audit 406687

Finding 1223172 (2025-001)

Material Weakness 2025

City of Lafayette

IN

Subrecipient Monitoring § 200.332

FINDING 2025-001 Contact Person Responsible for Corrective Action: Jeremy Diehl Contact Phone Number: 765-807-1011 Views of Responsible Official: Concurred Description of Corrective Action Plan: The Lafayette Housing Authority and City of Lafayette concur with this finding. During 2026, the Lafayett...

FINDING 2025-001 Contact Person Responsible for Corrective Action: Jeremy Diehl Contact Phone Number: 765-807-1011 Views of Responsible Official: Concurred Description of Corrective Action Plan: The Lafayette Housing Authority and City of Lafayette concur with this finding. During 2026, the Lafayette Housing Authority, in coordination with the City of Lafayette, initiated the development of formal written subrecipient monitoring policies and procedures for the HOME Investment Partnerships Program. These procedures will establish a structured monitoring framework that includes documented risk assessments, desk reviews, monitoring schedules, on-site reviews when applicable, monitoring reports, corrective action follow-up, and supervisory review. Standardized forms, checklists, and tracking tools are being developed to ensure monitoring activities are consistently documented and retained. The Executive Director and HOME Program Administrator will oversee implementation of the procedures, staff training, and ongoing compliance reviews to ensure compliance with 2 CFR 200.332 and HOME program requirements. Anticipated Completion Date: December 31, 2026

View Audit 406687

Finding 1223161 (2025-008)

Material Weakness 2025

Hillcrest Family Services, INC

IA

Procurement, Suspension & Debarment Questioned Costs

Finding 2025‐008: Procurement and Suspension and Debarment Federal Agency Name: U.S. Department of Health and Human Services Program Name: Certified Community Behavioral Health Clinic Expansion Grants Federal Financial Assistance Listing Number: 93.696 Finding Summary: The Organization entered into ...

Finding 2025‐008: Procurement and Suspension and Debarment Federal Agency Name: U.S. Department of Health and Human Services Program Name: Certified Community Behavioral Health Clinic Expansion Grants Federal Financial Assistance Listing Number: 93.696 Finding Summary: The Organization entered into contracts with a vendor for services without following their procurement policy. Responsible Individuals: Janet Warren, Director of Financial Operations Corrective Action Plan: Management review their written procurement, suspension and debarment policy regularly to confirm that it meets the requirements and that all transactions follow this policy. Anticipated Completion Date: June 5, 2026.

View Audit 406681

Finding 1223160 (2025-007)

Material Weakness 2025

Hillcrest Family Services, INC

IA

Allowable Costs / Cost Principles

Finding 2025‐007: Activities Allowed or Unallowed and Allowable Costs/Cost Principles and Period of Performance Federal Agency Name: U.S. Department of Health and Human Services Program Name: Certified Community Behavioral Health Clinic Expansion Grants Federal Financial Assistance Listing Number: 9...

Finding 2025‐007: Activities Allowed or Unallowed and Allowable Costs/Cost Principles and Period of Performance Federal Agency Name: U.S. Department of Health and Human Services Program Name: Certified Community Behavioral Health Clinic Expansion Grants Federal Financial Assistance Listing Number: 93.696 Finding Summary: During audit testing, not all expenditures allocated to the federal program had documentation of review and approval. In addition, an expenditure was determined to be unallowed. Responsible Individuals: Janet Warren, Director of Financial Operations Corrective Action Plan: Management agrees with the finding. The Organization will enhance internal control policies to ensure all expenditures are reviewed and approved prior to payment to ensure that all payments are necessary and correct. Anticipated Completion Date: June 5, 2026.

View Audit 406681

Finding 1223159 (2025-006)

Material Weakness 2025

Hillcrest Family Services, INC

IA

Reporting Questioned Costs Significant Deficiency

Finding 2025-006 Reporting Federal Agency Name: U.S. Department of Health and Human Services Program Name: Certified Community Behavioral Health Clinic Expansion Grants Federal Financial Assistance Listing Number: 93.696 Finding Summary: During audit testing of reporting, there was no documentation ...

Finding 2025-006 Reporting Federal Agency Name: U.S. Department of Health and Human Services Program Name: Certified Community Behavioral Health Clinic Expansion Grants Federal Financial Assistance Listing Number: 93.696 Finding Summary: During audit testing of reporting, there was no documentation available for the review and approval procedures performed for one of the reports tested. Responsible Individuals: Janet Warren, Director of Financial Operations Corrective Action Plan: Management agrees with the finding. There was turnover in staff and the prior CFO did not keep a record of his review over reporting. In the future, management will ensure that documentation of the approval process for reporting is kept. Anticipated Completion Date: June 5, 2026.

View Audit 406681

Finding 1223158 (2025-005)

Material Weakness 2025

Hillcrest Family Services, INC

IA

Cash Management Questioned Costs Significant Deficiency

Finding 2025-005 Cash Management Federal Agency Name: U.S. Department of Health and Human Services Program Name: Certified Community Behavioral Health Clinic Expansion Grants Federal Financial Assistance Listing Number: 93.696 Finding Summary: During audit testing of reimbursement requests, there wa...

Finding 2025-005 Cash Management Federal Agency Name: U.S. Department of Health and Human Services Program Name: Certified Community Behavioral Health Clinic Expansion Grants Federal Financial Assistance Listing Number: 93.696 Finding Summary: During audit testing of reimbursement requests, there was no documentation available for the review and approval procedures performed. Responsible Individuals: Janet Warren, Director of Financial Operations Corrective Action Plan: Management agrees with the finding. There was turnover in staff and the prior CFO did not keep a record of his review over cash management. In the future, management will ensure that documentation of the approval process for reimbursement is kept. Anticipated Completion Date: June 5, 2026.

View Audit 406681

Finding 1223157 (2025-004)

Material Weakness 2025

CLEAN ENERGY FUND OF TEXAS, INC.

TX

Questioned Costs Significant Deficiency Internal Control / Segregation of Duties § 200.303 § 200.430

Management agrees with the finding and acknowledges that documentation of timesheet and payroll reviews was not consistently retained during the audit period. Management notes that this finding relates primarily to the documentation and consistency of review controls rather than an indication that r...

Management agrees with the finding and acknowledges that documentation of timesheet and payroll reviews was not consistently retained during the audit period. Management notes that this finding relates primarily to the documentation and consistency of review controls rather than an indication that reviews were not performed. To address this finding, management has implemented a formal, documented review process for timesheets and payroll prior to disbursement. Timesheets will be reviewed and approved through a centralized system or documented workflow to ensure that evidence of supervisory review is retained. Payroll changes require CEO approval prior to or concurrent with processing and documentation retained. Each payroll is subject to independent review and confirmation. Cumulative payroll and allocation are further subject to independent quarterly review by the CEO with supporting documentation. These procedures will be incorporated into standard operating practices and monitored periodically to ensure consistent application and retention of audit evidence. Anticipated Implementation Date: Implemented and ongoing; formal policy incorporation expected by September 1, 2026. Contact Person Responsible for Corrective Action: Shahara Wright, Chief Operating Officer & General Counsel and Brook Abitz, Director of People and Operations

View Audit 406679

Finding 1223152 (2025-003)

Material Weakness 2025

CLEAN ENERGY FUND OF TEXAS, INC.

TX

Internal Control / Segregation of Duties § 200.303 § 200.403

Management agrees with the finding and acknowledges that documentation supporting review, approval, and segregation of duties for certain nonpayroll transactions was not consistently maintained during the audit period. To address this finding, management has formalized procedures requiring documente...

Management agrees with the finding and acknowledges that documentation supporting review, approval, and segregation of duties for certain nonpayroll transactions was not consistently maintained during the audit period. To address this finding, management has formalized procedures requiring documented approval of invoices and nonpayroll expenditures prior to payment. These procedures require a clear separation between the individual requesting or managing a transaction and the individual approving the invoice or payment. Management has also implemented standardized approval workflows to strengthen segregation of duties, enforce approval requirements, and maintain a complete audit trail. Management will incorporate these procedures into formal policies and standard operating procedures and will periodically monitor compliance to ensure controls are consistently applied across programs. Anticipated Implementation Date: Implemented and ongoing; formal policy incorporation expected by September 1, 2026 Contact Person Responsible for Corrective Action: Shahara Wright, Chief Operating Officer & General Counsel and Brook Abitz, Director of People and Operations

View Audit 406679

Finding 1223147 (2025-002)

Material Weakness 2025

CLEAN ENERGY FUND OF TEXAS, INC.

TX

Procurement, Suspension & Debarment Internal Control / Segregation of Duties Allowable Costs / Cost Principles § 200.318 § 200.320

Management agrees with the finding and acknowledges that procurement approval documentation was not consistently retained during the audit period. Management notes that the finding primarily relates to documentation and retention of approval evidence, including reliance on verbal approvals and docum...

Management agrees with the finding and acknowledges that procurement approval documentation was not consistently retained during the audit period. Management notes that the finding primarily relates to documentation and retention of approval evidence, including reliance on verbal approvals and documentation gaps associated with system transitions. To address this finding, management has implemented corrective actions requiring documented, written approval for procurements prior to execution. The organization will use standardized approval workflows to ensure procurement approvals are properly evidenced, retained, and available for audit review. Management has also established a centralized repository for procurement records to improve accessibility, consistency, and document retention. In addition, management will enhance data backup and migration procedures to reduce the risk of documentation loss during future system transitions. These procedures will be incorporated into formal policies and standard operating procedures. Management will monitor compliance to ensure procurement documentation and approval controls are consistently followed across federally funded programs. Anticipated Implementation Date: Implemented and ongoing; formal policy incorporation expected by September 1, 2026. Contact Person Responsible for Corrective Action: Shahara Wright, Chief Operating Officer & General Counsel and Brook Abitz, Director of People and Operations

View Audit 406679

Finding 1223141 (2025-002)

Material Weakness 2025

Boys & Girls Clubs of the Corridor

IA

Procurement, Suspension & Debarment

Coronavirus State and Local Fiscal Recovery Funds – 21.027 Recommendation: We recommend the Organization adopt a written procurement policy to be used when selecting vendors. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in resp...

Coronavirus State and Local Fiscal Recovery Funds – 21.027 Recommendation: We recommend the Organization adopt a written procurement policy to be used when selecting vendors. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: A procurement policy was adopted during the fiscal year. This finding is anticipated to be resolved going forward as it will have been in effect.. Name(s) of the contact person(s) responsible for corrective action: Doug Funke and John Tursi Planned completion date for corrective action plan: Completed as of 6/30/25.

View Audit 406667

Finding 1223140 (2025-007)

Material Weakness 2025

Puerto Rico Ports Authority

PR

Subrecipient Monitoring Cash Management § 200.302 § 200.305

The Puerto Rico Ports Authority (PRPA) acknowledges the audit finding regarding the unused capital advances as of June 30, 2025. It is important to clarify that these funds were received under the Working Capital Advance (WCA) Program, an initiative led by COR3 to expedite the implementation of FEMA...

The Puerto Rico Ports Authority (PRPA) acknowledges the audit finding regarding the unused capital advances as of June 30, 2025. It is important to clarify that these funds were received under the Working Capital Advance (WCA) Program, an initiative led by COR3 to expedite the implementation of FEMA-funded recovery projects. The WCA Program provides subrecipients, such as PRPA, with a 25% upfront advance of the total project cost to address initial project expenses and mitigate delays due to cash flow constraints. The WCA advance is disbursed by PRPA upon completion of contracted deliverables by vendors or suppliers, particularly during the design and early implementation phases of projects. As of the audit date, most of PRPA’s FEMA projects under the WCA were still in the design phase, and the disbursements made thus far correspond to completed design services. The remaining balance of WCA funds will be disbursed as vendors fulfill the contractual milestones tied to architectural and engineering (A&E) and construction services. The apparent delay between fund receipt and disbursement reflects the timing of deliverable completion rather than a lack of project activity. PRPA continues to monitor the progress of A&E and construction services to ensure timely disbursement aligned with actual project progress. To strengthen the oversight of WCA funds and ensure timely utilization, PRPA management is implementing enhanced administrative controls. These include the development and formal adoption of internal procedures aimed at improving the handling, identification, and classification of FEMArelated funds. These measures will support be􀄴er alignment between fund disbursement and project execution timelines and demonstrate PRPA’s commitment to the prudent and compliant management of federal funds.

View Audit 406665

Finding 1223139 (2025-006)

Material Weakness 2025

Puerto Rico Ports Authority

PR

Reporting Subrecipient Monitoring Allowable Costs / Cost Principles § 200.302 § 200.303 § 200.305 § 200.328 § 200.329

Finding No. 2025-006 – Internal control deficiencies over accounting for federal funds received from the United States Department of Homeland Security (DHS) Corrective Action Plan Single Audit 2025 Page 6 April 30, 2026 Condition During our procedures over the Authority’s funds received from FEMA we...

Finding No. 2025-006 – Internal control deficiencies over accounting for federal funds received from the United States Department of Homeland Security (DHS) Corrective Action Plan Single Audit 2025 Page 6 April 30, 2026 Condition During our procedures over the Authority’s funds received from FEMA we noticed the following: 1. Return of interest earned on FEMA-related funds totaling approximately $211,853 was not timely recorded in the general ledger and was subsequently recorded through a post-closing entry dated January 26, 2026. 2. Management initially misclassified approximately $6 million received under the Coronavirus State and Local Fiscal Recovery Funds as state funds rather than federal awards. As a result, the amount was originally excluded from the Schedule of Expenditures of Federal Awards (the Schedule). Views of Responsible Officials and Corrective Actions It should be noted that, although certain funds received were not properly identified as working capital advances, those funds were properly considered as received from FEMA through the COR-3 office of the Government of Puerto Rico. This situation basically arises because the federal funds coming from FEMA are being handled by outside consultants, without any coordination with the Federal Funds Management Office (FFMO). The Authority’s management will ensure that, in the future, the FFMO will coordinate with the assigned outside consultants all the efforts necessary for the proper handling, identification and classification of funds received from FEMA. Name(s) of the Contact Person(s) Responsible for Corrective Action Romel Pedraza Claudio. P.E. – Assistant Executive Director for Planning & Engineering Elena González – DEA Finance Miguel La Torre – Interim Finance Director Anticipated Completion Date During FY-2026-2027

View Audit 406665

Finding 1223138 (2025-005)

Material Weakness 2025

Puerto Rico Ports Authority

PR

Questioned Costs Reporting Significant Deficiency § 200.512

Finding No. 2025-005 – Late filing of data collection form and reporting package Condition The Authority did not submit the required data collection form and reporting package within the required period by March 31, 2026 (9 months after the end of fiscal year). Views of Responsible Officials and Cor...

Finding No. 2025-005 – Late filing of data collection form and reporting package Condition The Authority did not submit the required data collection form and reporting package within the required period by March 31, 2026 (9 months after the end of fiscal year). Views of Responsible Officials and Corrective Actions The Federal Funds Management Office (FFMO) is aware of the deadlines for filing the data collection form and the reporting package, however, as indicated in previous year’s audits, the completion of the required information continues out of their control. In addition, to having difficulties with its monthly accounting closings due to personnel limitations in the Accounting Office, the implementation of new accounting standards, such as GASBs No. 73, N0. 75, No. 87 and others have been additional obstacles to achieve our objective to file the data collection form and reporting package timely. Accordingly, it has not been possible to complete the audit of the financial statements and the single audits for various fiscal years on time, nor to file the data collection form and the reporting packages. In August 2025 and January 2026, the audited financial statements for 2024 and 2025, respectively were issued. Also, the Authority’s management expects to issue the 2026 financial statements during December 2026. Management will continue emphasizing to the FFMO that reports need to be submi􀄴ed on a timely basis. Management will do its best to procure additional personnel for the Accounting and Federal Funds Management Offices. Once a final catch-up of the timely issuance of the audited financial statements is achieved, the required information will be filed within the timeframe established by federal regulations. Name(s) of the Contact Person(s) Responsible for Corrective Action Romel Pedraza Claudio. P.E. – Assistant Executive Director for Planning & Engineering Luis R. Torres Meléndez – Federal Funds Area Officer José Mojica Bonet – Federal Funds Area Officer Anticipated Completion Date Once the Authority catches up with the financial statements’ issuance, the data collection form and reporting package will be filed timely.

View Audit 406665

Corrective Action Plans

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