Corrective Action Plans

Finding 1179715 (2025-035)

Material Weakness 2025

State of Nebraska

NE

Reporting

Program: AL 93.568 – Low-Income Home Energy Assistance – Reporting Corrective Action Plan: A new LIHEAP Household Report was developed and implemented for FFY 2025 data (available October 2025). New LIHEAP Quarterly Performance Data reports are currently being developed and are anticipated to be rel...

Program: AL 93.568 – Low-Income Home Energy Assistance – Reporting Corrective Action Plan: A new LIHEAP Household Report was developed and implemented for FFY 2025 data (available October 2025). New LIHEAP Quarterly Performance Data reports are currently being developed and are anticipated to be released in February 2026. In addition, a process is being developed to ensure all other LIHEAP funds, including journal entries, are captured and reported accurately. Contact: Andrea Morinelli Anticipated Completion Date: March 31, 2026

View Audit 392165

Finding 1179714 (2025-034)

Material Weakness 2025

State of Nebraska

NE

Subrecipient Monitoring Reporting

Program: AL 93.566 – Refugee and Entrant Assistance State/Replacement Designee Administered Programs – Reporting Corrective Action Plan: Office of Procurement and Grants will review current reporting practices, update as necessary, and schedule refresher training. Contact: Chelsea Peisen Anticipated...

Program: AL 93.566 – Refugee and Entrant Assistance State/Replacement Designee Administered Programs – Reporting Corrective Action Plan: Office of Procurement and Grants will review current reporting practices, update as necessary, and schedule refresher training. Contact: Chelsea Peisen Anticipated Completion Date: February 27, 2026

View Audit 392165

Finding 1179712 (2025-032)

Material Weakness 2025

State of Nebraska

NE

Subrecipient Monitoring Allowable Costs / Cost Principles

Program: AL 93.566 – Refugee and Entrant Assistance State/Replacement Designee Administered Programs – Subrecipient Monitoring Corrective Action Plan: The Refugee Resettlement Program has implemented new OEA Subrecipient Monitoring Procedures. In addition, OEA has recently hired new finance staff an...

Program: AL 93.566 – Refugee and Entrant Assistance State/Replacement Designee Administered Programs – Subrecipient Monitoring Corrective Action Plan: The Refugee Resettlement Program has implemented new OEA Subrecipient Monitoring Procedures. In addition, OEA has recently hired new finance staff and is in the process of transitioning financial monitoring to the OEA Federal Aid Administrators, who will work in conjunction with the RRP Program staff to complete monitoring and desk reviews to ensure compliance with Federal regulations. These streamlined processes with specifically trained staff will increase accuracy of the reviews and improve compliance. In addition, a monitoring summary will be utilized to document reviews, findings, corrective actions plans, etc. Contact: Sara Bockelman Anticipated Completion Date: October 30, 2026

View Audit 392165

Finding 1179711 (2025-031)

Material Weakness 2025

State of Nebraska

NE

Eligibility Matching / Level of Effort / Earmarking

Program: AL 93.566 – Refugee and Entrant Assistance State/Replacement Designee Administered Programs – Allowability & Eligibility Corrective Action Plan: The Refugee Resettlement Program has requested eligibility system changes to prevent eligibility errors. In addition, the Refugee Resettlement Pro...

Program: AL 93.566 – Refugee and Entrant Assistance State/Replacement Designee Administered Programs – Allowability & Eligibility Corrective Action Plan: The Refugee Resettlement Program has requested eligibility system changes to prevent eligibility errors. In addition, the Refugee Resettlement Program performs monthly reviews of RMA enrollees and will coordinate case reviews with the RMA team to ensure comprehensive case review. Retraining of eligibility staff will occur as needed. Contact: Sara Bockelman Anticipated Completion Date: April 30, 2026

View Audit 392165

Finding 1179706 (2025-030)

Material Weakness 2025

State of Nebraska

NE

Subrecipient Monitoring

Program: AL 93.558 – Temporary Assistance for Needy Families (TANF) – Subrecipient Monitoring Corrective Action Plan: The CAC subrecipients have already been determining TANF eligibility when serving clients. CFS is now requiring the CAC subrecipients to provide copies of those eligibility worksheet...

Program: AL 93.558 – Temporary Assistance for Needy Families (TANF) – Subrecipient Monitoring Corrective Action Plan: The CAC subrecipients have already been determining TANF eligibility when serving clients. CFS is now requiring the CAC subrecipients to provide copies of those eligibility worksheets along with their monthly billing in order to verify that the percentage billed to TANF is accurate. In addition, the Agency has followed up with the subrecipient regarding their Single Audit not being submitted. They are currently in the process of having it completed. Contact: Bryan Gilliland; Jennifer Auman; Gillian Suh Anticipated Completion Date: February 28, 2026

View Audit 392165

Finding 1179702 (2025-024)

Material Weakness 2025

State of Nebraska

NE

Subrecipient Monitoring Reporting Matching / Level of Effort / Earmarking § 200.511

Program: AL 84.425U – COVID-19 Education Stabilization Fund – American Rescue Plan – Elementary and Secondary School Emergency Relief Fund (ARP ESSER) – Reporting Corrective Action Plan: The NDE is in the process of reviewing all FFATA rules and regulations. Within the next three months business rul...

Program: AL 84.425U – COVID-19 Education Stabilization Fund – American Rescue Plan – Elementary and Secondary School Emergency Relief Fund (ARP ESSER) – Reporting Corrective Action Plan: The NDE is in the process of reviewing all FFATA rules and regulations. Within the next three months business rules will be established to ensure all federal regulations are being followed when reporting FFATA on a monthly basis. We will have our FFATA Specialist make the corrections in the SAM.gov system to ensure this subaward is reported. This will occur in the next two weeks. As we continue to establish the FFATA procedures we will continue to implement the double checking of all FFATA entries to ensure all funds are reported in the system. Contact: Dottie Heusman, ESEA Assistant Administrator Anticipated Completion Date: June 30, 2026

View Audit 392165

Finding 1179701 (2025-023)

Material Weakness 2025

State of Nebraska

NE

Subrecipient Monitoring Allowable Costs / Cost Principles § 200.332

Program: AL 84.365 – English Language Acquisition State Grants – Subrecipient Monitoring Corrective Action Plan: The Agency will strengthen its subrecipient fiscal monitoring processes to ensure compliance with 2 CFR §200.332 and to improve the consistency, documentation, and timeliness of monitorin...

Program: AL 84.365 – English Language Acquisition State Grants – Subrecipient Monitoring Corrective Action Plan: The Agency will strengthen its subrecipient fiscal monitoring processes to ensure compliance with 2 CFR §200.332 and to improve the consistency, documentation, and timeliness of monitoring activities. The Agency will also reinforce procedures to ensure that all monitoring steps, including transaction sampling, documentation review, and follow up on corrective actions, are fully supported and aligned with Federal requirements. The Agency will update and reinforce its fiscal monitoring procedures to ensure timely, well documented, and risk responsive reviews. Key actions include: • Updating the fiscal monitoring SOP to require complete documentation of all procedures performed, including use of the fiscal monitoring worksheet and clear identification of all transactions reviewed. • Implementing a monitoring calendar with automated reminders to ensure subrecipients are reviewed within the three year cycle and that higher risk entities receive additional attention. • Providing refresher training to program and fiscal staff on federal cost principles, documentation requirements, and monitoring expectations. Contact: Victoria Katzberg, Director of Grants Compliance Anticipated Completion Date: 6/30/2026

View Audit 392165

Finding 1179700 (2025-022)

Material Weakness 2025

State of Nebraska

NE

Cash Management Reporting Matching / Level of Effort / Earmarking § 200.102 § 200.207 § 200.302

Program: AL 84.126 – Rehabilitation Services Vocational Rehabilitation Grants to States – Reporting Corrective Action Plan: An additional review will be completed by NDE Budget and Grant Management staff to ensure accuracy. Contact: Cathy Callaway Anticipated Completion Date: Completed

View Audit 392165

Finding 1179699 (2025-021)

Material Weakness 2025

State of Nebraska

NE

Subrecipient Monitoring Allowable Costs / Cost Principles § 200.332 § 200.501 § 200.514

Program: AL 84.010 – Title I Grants to Local Educational Agencies – Subrecipient Monitoring Corrective Action Plan: The Agency will strengthen both its fiscal monitoring and Single Audit tracking processes to ensure full compliance with 2 CFR §200.332 and §200.501. The Agency will update its fiscal ...

Program: AL 84.010 – Title I Grants to Local Educational Agencies – Subrecipient Monitoring Corrective Action Plan: The Agency will strengthen both its fiscal monitoring and Single Audit tracking processes to ensure full compliance with 2 CFR §200.332 and §200.501. The Agency will update its fiscal monitoring procedures to ensure timely, well documented, and risk responsive reviews. Key actions include: • Updating the fiscal monitoring SOP to require complete documentation of all procedures performed, including use of the fiscal monitoring worksheet. • Implementing a monitoring calendar with automated reminders to ensure subrecipients are reviewed within the three year cycle and that higher risk entities receive additional attention. • Requiring supervisory review of all monitoring files to confirm completeness and adequacy. • Strengthening documentation standards so that all items reviewed and conclusions reached are clearly recorded. • Providing refresher training to staff on federal cost principles and monitoring expectations. • Introducing standardized naming conventions and consistent terminology aligned with 2 CFR Part 200 to ensure clarity, uniformity, and ease of review across all monitoring files. This includes consistent labeling of subprograms, transaction samples, supporting documentation, and references to applicable regulatory requirements. The Agency will reinforce its Single Audit tracking and verification procedures to ensure accurate identification and documentation of audit requirements. Key actions include: • Creating a standardized Single Audit tracking log capturing fiscal year end, total federal expenditures, audit requirement status, and follow up actions. • Revising SOPs to require documented verification when a subrecipient exceeds the $1,000,000 threshold but reports that no Single Audit is required. • Implementing system alerts to flag subrecipients approaching or exceeding the audit threshold. • Ensuring timely review and documentation of all submitted Single Audits, including any findings and resolutions. • Providing staff training on Single Audit requirements and updated procedures. These actions will strengthen internal controls, improve documentation, and ensure consistent compliance with federal subrecipient monitoring and audit requirements. Contact: Victoria Katzberg, Director of Grants Compliance Anticipated Completion Date: 6/30/2026

View Audit 392165

Finding 1179698 (2025-061)

Material Weakness 2025

State of Nebraska

NE

Cash Management § 200.302 § 200.303 § 200.305

Program: AL 12.401 – National Guard Military Operations and Maintenance (O&M) Projects – Cash Management & Reporting Corrective Action Plan: Continue to monitor program expenditures to aid in optimizing forecasting and advance request accuracy. Contact: Lauren Hargreaves Anticipated Completion Date:...

Program: AL 12.401 – National Guard Military Operations and Maintenance (O&M) Projects – Cash Management & Reporting Corrective Action Plan: Continue to monitor program expenditures to aid in optimizing forecasting and advance request accuracy. Contact: Lauren Hargreaves Anticipated Completion Date: Ongoing

View Audit 392165

Finding 1179697 (2025-020)

Material Weakness 2025

State of Nebraska

NE

School Nutrition Programs Subrecipient Monitoring

Program: AL 10.553 – School Breakfast Program; AL 10.555 – National School Lunch Program; AL 10.556 – Special Milk Program for Children; AL 10.559 – Summer Food Service Program for Children; and AL 10.582 – Fresh Fruit and Vegetable Program – Reporting Corrective Action Plan: On February 25, the NDE...

Program: AL 10.553 – School Breakfast Program; AL 10.555 – National School Lunch Program; AL 10.556 – Special Milk Program for Children; AL 10.559 – Summer Food Service Program for Children; and AL 10.582 – Fresh Fruit and Vegetable Program – Reporting Corrective Action Plan: On February 25, the NDE grants management team completed a crosswalk that matches the coding in the E1 payment system with the grant award FAINs the sam.gov system recognizes. Next, the data management team will query the E1 payment system to generate a report with correct FAINs needed for reporting; this will be completed by March 2, 2026. Finally, the Nutrition Services team will review the reports and will complete submission of missing reports using the corrected data files by March 31, 2026. Contact: Kayte Partch Anticipated Completion Date: March 31, 2026

View Audit 392165

Finding 1179689 (2025-001)

Material Weakness 2025

Portland Youthbuilders

OR

Cash Management Significant Deficiency

2025-001 Finding – Significant Deficiency in Internal Controls over Cash Management Context and Cause – It was noted during the audit that there was not a documented review of the selected cash draws for the program tested. Internal controls should be designed to include a documented supervisory rev...

2025-001 Finding – Significant Deficiency in Internal Controls over Cash Management Context and Cause – It was noted during the audit that there was not a documented review of the selected cash draws for the program tested. Internal controls should be designed to include a documented supervisory review of cash draw requests to ensure accuracy, proper authorization, and compliance with program requirements and the Code of Federal Regulations 200.303. PYB is aware of our Policy for a documented review, but due to competing priorities and impact on workload, the Fiscal Director did not consistently perform the control during the time period that was tested. Auditor Recommendation – Kern & Thompson recommend that PYB re-implement the procedure noted in the prior year, where a supervisor’s initials and date of review was documented on the support for each cash draw, prior to draw down of federal funds. Action Taken – PYB implemented a similar, improved review procedure effective with the October 2025 draw, submitted December 17, 2025. The new procedure uses email to provide documents for review and to document approval of the draw. The Fiscal Director is responsible for submitting cash draws and must send the email to both the Executive Director and the Accountant for review. Each month's emailed documentation includes the DOL income statement for the month (showing the amount for reimbursement); a confirmation that supporting documentation has been attached to the draw request; and a draw confirmation confirming the date of submission, the amount, the date funds should be deposited to PYB’s account, and the justification required for the payment. The Fiscal Director also includes information about the amount of funds remaining on the grant award. After reviewing the documents, the Executive Director replies with approval.

View Audit 392159

Finding 1179682 (2025-001)

Material Weakness 2025

Westfield State University

MA

Student Financial Aid Reporting

Finding number: 2025-001 Federal agency: U.S. Department of Education Programs: Student Financial Assistance Cluster Assistance Listing #: 84.007, 84.063, 84.268 Award year: 2025 The Registrar’s Office will perform a mandatory “Missing SSN Report” that picks up missing and invalid SSNs before every ...

Finding number: 2025-001 Federal agency: U.S. Department of Education Programs: Student Financial Assistance Cluster Assistance Listing #: 84.007, 84.063, 84.268 Award year: 2025 The Registrar’s Office will perform a mandatory “Missing SSN Report” that picks up missing and invalid SSNs before every enrollment data submission to the National Student Clearinghouse (“NSC”). The Registrar will send the Financial Aid Office a list of students with missing SSNs and Financial Aid will verify if students in the report have a FAFSA on file. If there is a FAFSA on file for a student, Financial Aid will update the SSN in the Banner system and send an email confirmation to the Registrar to confirm all records on the report have been reviewed and/or updated. The next enrollment file submitted to the NSC will include the students with the correct data. Furthermore, the Registrar Office will send a written communication to the Provost/Vice President for Academic Affairs verifying that all student records sent the National Student Clearing House has a SSN number prior to any reporting deadline. This communication will be kept on file and available for review for the next audit period. As an additional step, when Financial Aid staff load initially unmatched ISIRs to active Westfield State student records, Banner is now set to automatically populate the student record with the social security number from the matched FAFSA. The goal is to reduce the number of missing social security numbers pulled by the Registrar when they run the “Missing SSN report.” Timeline for Implementation of Corrective Action Plan: Above corrections were implemented in November 2025. Contact Person: Monique Lopez, Registrar and Simone Backstedt, Director, Financial Aid

View Audit 392105

Finding 1179679 (2025-002)

Material Weakness 2025

The Methodist University, Inc.

NC

Special Tests & Provisions Student Financial Aid Subrecipient Monitoring

FINDING 2025-002 Name of Responsible Individual: Mary Mercer, Director Student Financial Services Corrective Action: Issue: The current refund report used to monitor Title IV refunds has limitations that affected the completeness of data reviewed. Reports rely on manual batch postings, which can del...

FINDING 2025-002 Name of Responsible Individual: Mary Mercer, Director Student Financial Services Corrective Action: Issue: The current refund report used to monitor Title IV refunds has limitations that affected the completeness of data reviewed. Reports rely on manual batch postings, which can delay or omit certain transactions at the time of report generation. This created gaps in monitoring and potential human error. Action Step Responsible Party Timeline Transition to new system – Implement refund reporting to reduce manual errors and improve completeness. Student Financial Services & IT (if needed) Full adoption by Academic Year 2026–2027 Staff training – Provide comprehensive training to Student Financial Services staff on new system processes, reporting, and controls for Title-IV refunding. Ellucian Consultant & Student Financial Services When training session is scheduled through first report in 2026-2027 Interim verification controls – Conduct weekly reconciliation of batch postings and verifications that all Title IV refunds are captured until the new system is fully operational. Student Financial Services & Controller’s Office Immediate until system adoption Validation & reconciliation process – Establish a formal process within the new system to ensure all refunds are accurately captured and reported. Student Financial Services By first full report in 2026–2027

View Audit 392102

Finding 1179678 (2025-001)

Material Weakness 2025

The Methodist University, Inc.

NC

Student Financial Aid

FINDING 2025-001 Name of Responsible Individual: Kasi Turner Corrective Action: To prevent future occurrences of missing campus‑level student enrollment reporting, both the University Registrar and Assistant Registrar will participate in the upcoming NSClearinghouse Academy on Thursday, March 26. Th...

FINDING 2025-001 Name of Responsible Individual: Kasi Turner Corrective Action: To prevent future occurrences of missing campus‑level student enrollment reporting, both the University Registrar and Assistant Registrar will participate in the upcoming NSClearinghouse Academy on Thursday, March 26. This session will provide a refresher on enrollment compliance reporting requirements and offer opportunities to connect with peers and Clearinghouse staff to discuss best practices. Additionally, I will begin collaborating with the MU Database Administrator, Mary Hupp, to compile and review all monthly enrollment reports prior to submission to the National Student Clearinghouse. As part of this strengthened workflow, we will implement a two‑person sign‑off to ensure that both the data extraction and the TXT file mapping are jointly reviewed and verified before transmission. This added step ensures a second review of both the database and the TXT file before transmission, strengthening accuracy,and reducing the likelihood of future omissions. Before the next reporting cycle, the Registrar’s Office will also review and update the current enrollment reporting process documentation in collaboration with Mary Hupp to ensure that all steps, and system validation points are clearly defined and consistently followed. Anticipated Completion Date: April 15, 2026

View Audit 392102

Finding 1179677 (2025-002)

Material Weakness 2025

Granville County, North Carolina

NC

Eligibility Internal Control / Segregation of Duties Material Weakness

For the Year Ended June 30, 2025 Corrective Action Plan Finding 2025-002 Inaccurate Information Entry Name of contact person: Corrective Action: Proposed completion date: Corrective actions for Finding 2025-005 also apply to State Award findings. Section IV - State Award Findings and Questioned Cost...

For the Year Ended June 30, 2025 Corrective Action Plan Finding 2025-002 Inaccurate Information Entry Name of contact person: Corrective Action: Proposed completion date: Corrective actions for Finding 2025-005 also apply to State Award findings. Section IV - State Award Findings and Questioned Costs Taylor White and Michelle Ogle - Medicaid Supervisors Family and Children Leadership Training: On October 29, 2025, staff received training on self-employment income calculations, including guidance on interpreting tax forms. This training ensures caseworkers correctly document and budget income in the case files going forward. Adult Medicaid Leadership Training: On June 6, 2025, Adult Medicaid leadership conducted SSI Ex Parte training to reinforce policy requirements and timeliness standards for processing program changes. A follow-up SSI training was also held on July 15, 2025, to emphasize the importance of timeliness and policy compliance. Policy and Process Improvement Training: On December 18, 2025, Family and Children Leadership will conduct training on “Noncompliance with Program Requirements and Inadequate Requests,” focusing on online verification review procedures, appropriate notice requirements for undocumented aliens, and appropriate policy sections. This session will include time management training and the implementation of a timeliness checklist to improve case processing efficiency. Adult Medicaid Policy Training: By December 31, 2025, Adult Medicaid Leadership will conduct training covering appropriate policy sections including - Financial Resources verifications, income limit reduction rules, and Transfer of Assets verifications. Adult Medicaid caseworkers will also complete some online trainings and update the review documentation template to include the income limit reduction rules. These corrective actions are designed to strengthen staff knowledge of policy requirements, improve documentation accuracy, and ensure ongoing compliance with timeliness and program standards. All trainings and documentation updates will be completed by December 31, 2025. Section III - Federal Award Findings and Questioned Costs 159

View Audit 392096

Finding 1179676 (2025-006)

Material Weakness 2025

Community Action Partnership of Sonoma County

CA

Equipment & Real Property Management § 200.313

Finding 2025-006 e. Program Name: Head Start and Early Head Start f. Criteria or Specific Requirement: Physical Inventory Observation: Under 2 CFR 200 200.313(4)(2), a physical inventory of property must be taken at least once every two years. The results should be reconciled with the general ledger...

Finding 2025-006 e. Program Name: Head Start and Early Head Start f. Criteria or Specific Requirement: Physical Inventory Observation: Under 2 CFR 200 200.313(4)(2), a physical inventory of property must be taken at least once every two years. The results should be reconciled with the general ledger. g. Condition: The Organization has not performed a physical inventory in the last two years. h. Response: Physical inventory is currently underway, at about 50% completion across multiple locations. We estimate this will be completed by the end of the fiscal year.

View Audit 392084

Finding 1179675 (2025-005)

Material Weakness 2025

Community Action Partnership of Sonoma County

CA

Finding 2025-005 a. Program Name: Community Services Block Grant (CSBG) b. Criteria or Specific Requirement: Tri-Partite Board Composition: The CSBG Act at 42 USC 9910(b) requires that public organizations administer the CSBG program through a tri-Partite board. c. Condition: Less than 1/3 of the me...

Finding 2025-005 a. Program Name: Community Services Block Grant (CSBG) b. Criteria or Specific Requirement: Tri-Partite Board Composition: The CSBG Act at 42 USC 9910(b) requires that public organizations administer the CSBG program through a tri-Partite board. c. Condition: Less than 1/3 of the members of the board of directors of the Organization were representative of the government sector in accordance with CSBG requirements. d. Response: The Organization onboarded public sector board members, but due to turnover are below its membership number and are now low in low income/lived experience sector representation. The Organization is currently short three board members, all of which would need to provide low-income representation. Recruitment is a standing item at our governance committee meetings, and we have two prospective board members.

View Audit 392084

Finding 1179672 (2025-004)

Material Weakness 2025

Community Action Partnership of Sonoma County

CA

Reporting Cash Management Matching / Level of Effort / Earmarking

Finding 2025-004 a. Program Name: Head Start and Early Head Start b. Criteria or Specific Requirement: Failure to comply with the grant agreement’s terms and applicable regulations: The Organization did not comply with grant compliance requirements such as timeliness of submitting reports to funding...

Finding 2025-004 a. Program Name: Head Start and Early Head Start b. Criteria or Specific Requirement: Failure to comply with the grant agreement’s terms and applicable regulations: The Organization did not comply with grant compliance requirements such as timeliness of submitting reports to funding agencies and meeting matching requirements. c. Condition: The Organization had inconsistent performance on the submission of periodic grant reports in a timely matter. This submission pattern conflicts with grant timelines outlined in the Notice of Awards. Specifically, it was noted for one of Organization’s major programs, Head Start and Early Head Start, that reports were submitted outside of defined due dates. The Form SF-429 was not filed for the 2025 fiscal year. Further, Head Start and Early Head Start experienced 2 delayed reports. Management informed us that the delays in reporting were attributable to submission issues on the federal reporting platform, which temporarily prevented timely filling despite management’s attempts to complete the report. Once access to submission was granted, management promptly submitted the required report. d. Response: Turnover in the personnel responsible for submitting reports lead to the initial late submission. The management will ensure all the reports to be submitted within the defined due dates. In terms of matching, the Organization has made a waiver request and believes in the success of obtaining the waiver.

View Audit 392084

Finding 1179671 (2025-003)

Material Weakness 2025

Community Action Partnership of Sonoma County

CA

Allowable Costs / Cost Principles

Finding 2025-003 a. Program Name: Head Start and Early Head Start, Coronavirus State and Local Fiscal Recovery Funds b. Criteria or Specific Requirement: Lack of Supporting Documents: Federal requirements under 2 CFR 200 section 303 state that the Organization must establish and maintain effective i...

Finding 2025-003 a. Program Name: Head Start and Early Head Start, Coronavirus State and Local Fiscal Recovery Funds b. Criteria or Specific Requirement: Lack of Supporting Documents: Federal requirements under 2 CFR 200 section 303 state that the Organization must establish and maintain effective internal control over compliance, including controls to ensure payroll costs are charged to federal awards are supported by adequate documentation. Effective internal controls require maintaining sufficient personnel and payroll records, including executed offer letters, and written documentation of wage or position changes with appropriate approvals, to support payroll expenses charged to the program. c. Condition: During payroll testing, we noted instances in which supporting documentation was not retained for payroll activity including missing signed offer letters and / or written approvals of wage or position changes. d. Response: We have implemented a new procedural checklist that accompanies any staff wage or position change. Within this we have clarified that wage changes must be accompanied by a formal letter that is signed by the employee, and that email communications will not suffice. This should ensure that in the future the official signed letters are collected in the format recommended for each such change.

View Audit 392084

Finding 1179658 (2025-003)

Material Weakness 2025

Rogue Community College

OR

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

Finding: 2025-003 Federal Agency Name: U.S. Department of Health and Human Services Assistance Listing Number(s): 93.493 Program Name: Community Project Funding Finding Summary: Uniform Guidance at 2 CFR 200.303 requires nonfederal entities to establish and maintain effective internal control over f...

Finding: 2025-003 Federal Agency Name: U.S. Department of Health and Human Services Assistance Listing Number(s): 93.493 Program Name: Community Project Funding Finding Summary: Uniform Guidance at 2 CFR 200.303 requires nonfederal entities to establish and maintain effective internal control over federal awards that provides reasonable assurance that the entity is managing federal awards in compliance with applicable laws, regulations, and the terms and conditions of the award. Effective internal control includes appropriate independent review of reports to ensure accuracy prior to submission. During our testing over the report submissions for the fiscal year, we noted there was not an independent review completed over the quarterly expenditure report. Responsible Individuals: Michael Pollock, CFO and Debbie Dice, Director, Financial Reporting, Audit/Compliance Corrective Action Plan: There was transition in several of the key roles during the fiscal year, causing the review not to be completed over the quarterly submissions that will be rectified during 2025-26. Internal controls will be updated with the following steps: 1) Quarterly federal expenditure reports will be prepared by the an assigned Accountant II member and reviewed by a the Director of Financial Reporting, Audit and Compliance prior to submission to the granting agency; 2) Obtain evidence of the independent review, including reviewer sign-off and date of review, will be documented and retained with the report submission records; 3) The College will update written internal control procedures governing federal grant reporting to formally incorporate the independent review requirement; and 4) The Director of Financial Reporting, Audit and Compliance will monitor adherence to the review process and ensure that documentation is maintained for audit purposes. Anticipated Completion Date: June 2026

View Audit 392056

Finding 1179657 (2025-002)

Material Weakness 2025

Rogue Community College

OR

Special Tests & Provisions Student Financial Aid Significant Deficiency

Finding: 2025-002 Federal Agency Name: U.S. Department of Education Assistance Listing Number(s): 84.063, 84.007, 84.268, 84.033 Program Name: Student Financial Assistance Cluster Finding Summary: Institutions that implement an affirmative confirmation process (as described in 34 CFR 668.165 (a)(6)(...

Finding: 2025-002 Federal Agency Name: U.S. Department of Education Assistance Listing Number(s): 84.063, 84.007, 84.268, 84.033 Program Name: Student Financial Assistance Cluster Finding Summary: Institutions that implement an affirmative confirmation process (as described in 34 CFR 668.165 (a)(6)(i)) must make this notification to the student or parent no earlier than 30 days before, and no later than 30 days after, crediting the student’s account at the institution with Direct Loan. Institutions that do not implement an affirmative confirmation process must notify a student no earlier than 30 days before, but no later than seven days after, crediting the student’s account and must give the student 30 days (instead of 14) to cancel all or part of the loan. Responsible Individuals: Frankie Everett, Director, Financial Aid Corrective Action Plan: The College implemented a new ERP system in the current year that caused delays in notifying students of their loan disbursements. PowerFAIDS allows documenting the email sent to students in the Communication Log, but a box has to be checked when the email batch is sent. This step was inadvertently missed in several batches so we cannot confirm the email was sent. The Department is working to automate the emails with a college-hired consultant. In the meantime, the Financial Aid Operations Coordinator (Jessica Jones) is double-checking that disbursement emails are going out each week. Anticipated Completion Date: June 2026

View Audit 392056

Finding 1179653 (2025-001)

Material Weakness 2025

Rogue Community College

OR

Special Tests & Provisions Student Financial Aid Reporting

Finding: 2025-001 Federal Agency Name: U.S. Department of Education Assistance Listing Number(s): 84.007, 84.033, 84.063, and 84.268 Program Name: Student Financial Assistance Cluster Finding Summary: 34 CFR 690.83(b)(2) and 34 CFR 685.309 states that Institutions are responsible for accurate report...

Finding: 2025-001 Federal Agency Name: U.S. Department of Education Assistance Listing Number(s): 84.007, 84.033, 84.063, and 84.268 Program Name: Student Financial Assistance Cluster Finding Summary: 34 CFR 690.83(b)(2) and 34 CFR 685.309 states that Institutions are responsible for accurate reporting of a student’s enrollment status and changes in those enrollment statuses, whether they report directly or via a third‐party servicer. The support provided by RCC for the students’ last date of attendance did not agree to the students’ withdrawal that had been submitted to NSLDS. Responsible Individuals: Danielle Crouch, Registrar and Analisa Gifford, Assistant Registrar Corrective Action Plan: During the 2023-2024 academic year, we were utilizing an outdated, homegrown Student Information System (SIS). A previously unidentified flaw in the system’s programming logic caused incorrect withdrawal dates to be populated in the National Student Clearinghouse (NSC) report. For the 2024-2025 academic year, we have transitioned to Jenzabar One, an industry-recognized SIS that includes built-in Enrollment Reporting functionality. To ensure accurate reporting moving forward, we are conducting audits of withdrawal dates at the end of each term. With the implementation of this new system and enhanced audit processes, this issue will be fully mitigated. Rogue Community College has implemented corrective actions to strengthen internal controls and ensure the accurate reporting of student enrollment statuses to the National Student Loan Data System (NSLDS). The College now utilizes withdrawal reports to systematically identify students who have withdrawn from all enrolled courses. These reports are reviewed to verify each student’s official withdrawal date prior to submission to NSLDS. For students who receive non-passing grades, the College reviews and reports the last date of attendance, when applicable, to ensure accurate determination of the student’s withdrawal date. As additional internal control, the College conducts term-end audits of withdrawal dates and last dates of attendance to confirm that enrollment status changes have been reported accurately and in accordance with federal requirements. Any discrepancies identified through this review process are corrected promptly. Additionally, the College utilizes graduation reports to verify that students who have completed all program requirements within their declared major are appropriately reported to NSLDS with an enrollment status of Graduated. Through these enhanced monitoring and verification procedures, Rogue Community College is confident that enrollment status changes are reported accurately and in compliance with the requirements outlined in 34 CFR 690.83(b)(2) and 34 CFR 685.309. Anticipated Completion Date: October 2025

View Audit 392056

Finding 1179649 (2025-001)

Material Weakness 2025

Chaffey Community College District

CA

Student Financial Aid Significant Deficiency Internal Control / Segregation of Duties

The District acknowledges that deficiencies in internal controls over the Return to Title IV calculation process resulted in inaccurate calculations. The District has reviewed the identified calculations and corrected all errors. Return to Title IV policies and procedures will be updated and a stand...

The District acknowledges that deficiencies in internal controls over the Return to Title IV calculation process resulted in inaccurate calculations. The District has reviewed the identified calculations and corrected all errors. Return to Title IV policies and procedures will be updated and a standard process is to be completed for every calculation. The District will implement a mandatory secondary review of all Return to Title IV calculations prior to processing returns or post-withdrawal disbursements.

View Audit 392053

Finding 1179642 (2025-008)

Material Weakness 2025

New Rochelle Municipal Housing Authority

NY

HUD Housing Programs

Finding 2025-008: HQS Enforcement / Inspections Federal Program Finding Management acknowledges the finding and will strengthen oversight and enforcement of Housing Quality Standards (HQS) within the Housing Choice Voucher program. The Authority will discontinue the use of a contracted inspection se...

Finding 2025-008: HQS Enforcement / Inspections Federal Program Finding Management acknowledges the finding and will strengthen oversight and enforcement of Housing Quality Standards (HQS) within the Housing Choice Voucher program. The Authority will discontinue the use of a contracted inspection service for the Tenant-Based Voucher program and will transition to conducting HQS inspections in-house. This change will allow for improved oversight, scheduling, and monitoring of inspection and reinspection timelines. NRMHA will implement procedures to ensure that failed inspections are tracked and reinspections are completed within HUD’s required 30-day timeframe. In cases where deficiencies are not corrected within the required period, Housing Assistance Payments (HAP) abatements or other enforcement actions will be implemented in accordance with HUD regulations. Additionally, staff responsible for HQS inspections will receive training on HQS compliance requirements, and management will conduct periodic internal reviews of inspection files to ensure adherence to program requirements. Expected Completion Date August 31, 2026

View Audit 392052

Corrective Action Plans

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