Corrective Action Plans

Finding 1222193 (2025-001)

Material Weakness 2025

WA

HUD Housing Programs

Finding 2025-001: Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157 Anticipated Completion Date: September 30, 2026 Recommendation: It was recommended Sessions Village 202 obtain the missing signed documents if the tenant still resides...

Finding 2025-001: Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157 Anticipated Completion Date: September 30, 2026 Recommendation: It was recommended Sessions Village 202 obtain the missing signed documents if the tenant still resides at the project. In addition, it was recommended Sessions Village 202 review all tenant files to ensure all other records are complete. Also, it was recommended staff involved in the tenant move-in process review the requirements and revise their current process and procedures as needed to ensure the appropriate forms are completed correctly and kept in the tenant files going forward. Additional controls could include completing a checklist of required signed forms obtained during the move-in process, or having a second individual check the file for completeness. Action Taken: In December 2025, the Property Manager obtained the missing signed documents for the tenants listed above. For one instance, the tenant had already moved out and no updated documentation could be obtained. The Property Manager will review the process and procedures in place, and implement controls to ensure the appropriate forms are completed correctly and kept in the tenant files going forward.

View Audit 406042

Finding 1222187 (2025-004)

Material Weakness 2025

Dartmouth-Hitchcock Health and Subsidiaries

NH

Questioned Costs Subrecipient Monitoring Reporting § 200.328

2025-004 Reporting Cluster: Other major program referenced below Sponsoring Agency: Department of Labor Award Names: RETAIN Demonstration Projects Award Numbers: 1947RTN2-02B Assistance Listing Title: Disability Employment Policy Development Assistance Listing Number: 17.720 Award Year: 2024-2025 Pa...

2025-004 Reporting Cluster: Other major program referenced below Sponsoring Agency: Department of Labor Award Names: RETAIN Demonstration Projects Award Numbers: 1947RTN2-02B Assistance Listing Title: Disability Employment Policy Development Assistance Listing Number: 17.720 Award Year: 2024-2025 Pass-through entity: Vermont Department of Labor Management agrees with the finding related to Reporting. Management submitted monthly reports to the State of Vermont that covered all required information and thus did not believe quarterly reports were required.. The State of Vermont subsequently clarified that quarterly reports were required and we will work with them to ensure all required information is submitted for past quarters and going forward, as required. Individual Responsible: John Muhlen, System Vice President of Corporate Finance Anticipated Completion Date: September 30, 2026

View Audit 406039

Finding 1222186 (2025-003)

Material Weakness 2025

Dartmouth-Hitchcock Health and Subsidiaries

NH

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.214

2025-003 Suspension & Debarment Cluster: Other major program referenced below Sponsoring Agency: Department of Health and Human Services Award Names: Doorway for Substance Use-Related Supports and Services Award Numbers: Cheshire Medical Center 05-95-920510-7040000 Assistance Listing Title: Opioid S...

2025-003 Suspension & Debarment Cluster: Other major program referenced below Sponsoring Agency: Department of Health and Human Services Award Names: Doorway for Substance Use-Related Supports and Services Award Numbers: Cheshire Medical Center 05-95-920510-7040000 Assistance Listing Title: Opioid STR Assistance Listing Number: 93.788 Award Year: 2024-2025 Pass-through entity: New Hampshire Department of Health and Human Services Management agrees with the finding related to Suspension & Debarment. Dartmouth Health experienced significant leadership turnover and changeover in the contracting and procurement function in fiscal year 2025. This was the primary cause of suspension and debarment checks not being completed before entering into agreements with new vendors. The Office of Research Finance will provide training to procurement and contracting staff to further emphasize the importance of performing vendor checks before entering into agreements. Individual Responsible: John Muhlen, System Vice President of Corporate Finance Anticipated Completion Date: September 30, 2026

View Audit 406039

Finding 1222185 (2025-001)

Material Weakness 2025

Dartmouth-Hitchcock Health and Subsidiaries

NH

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.430

2025-001 Timeliness of Effort Certification Cluster: Research and Development (also applies to other major programs referenced below) Sponsoring Agency: All research and development cluster sponsoring agencies and Department of Health and Human Services (for the other major program referenced below)...

2025-001 Timeliness of Effort Certification Cluster: Research and Development (also applies to other major programs referenced below) Sponsoring Agency: All research and development cluster sponsoring agencies and Department of Health and Human Services (for the other major program referenced below) Award Names: All research and development cluster awards and Doorway for Substance Use-Related Supports and Services Award Numbers: All research and development cluster awards, Cheshire Medical Center 05-95-920510-7040000 Assistance Listing Title: All research and development cluster assistance listing titles and Opioid STR Assistance Listing Number: All research and development cluster assistance listing numbers and 93.788 Award Year: 2024-2025 Pass-through entity: All research and development cluster pass-through entities and New Hampshire Department of Health and Human Services This is a repeat finding of 2024-002 and in the prior year corrective action plan we had anticipated correcting this matter by March 31, 2025. Due to additional training needing to be administered to providers, we had to revise our date of completion to September 30, 2026. Management agrees with the finding related to the timeliness of effort certification. Management has continued to provide training and education to both operational and clinical leadership regarding timely effort certification. Dartmouth-Hitchcock currently has two effort certification systems: one used for research and one used to track other metrics. This has caused confusion among those required to certify effort for federal awards as they often believe that they had already certified their effort for research purposes . Management will provide additional education sessions and provide further clarification to the research community on the importance of timely effort certification and the differences in each effort reporting system. Individual Responsible: John Muhlen, System Vice President of Corporate Finance Anticipated Completion Date: September 30, 2026

View Audit 406039

Finding 1222184 (2025-002)

Material Weakness 2025

Dartmouth-Hitchcock Health and Subsidiaries

NH

Equipment & Real Property Management Subrecipient Monitoring § 200.313

2025-002 Equipment Management Cluster: Research and Development Sponsoring Agency: All research and development cluster sponsoring agencies Award Names: All research and development cluster awards Award Numbers: All research and development cluster awards Assistance Listing Title: All research and d...

2025-002 Equipment Management Cluster: Research and Development Sponsoring Agency: All research and development cluster sponsoring agencies Award Names: All research and development cluster awards Award Numbers: All research and development cluster awards Assistance Listing Title: All research and development cluster assistance listing titles Assistance Listing Number: All research and development cluster assistance listing numbers Award Year: 2024-2025 Pass-through entity: All research and development cluster pass-through entities This is a repeat finding of 2024-004 and 2022-001 and in the prior year corrective action plan we had anticipated correcting this matter by June 30, 2025. Management agrees with the finding related to equipment management. Management conducted a biannual physical inventory count of specific federally purchased research equipment in Fiscal Year 2024, however the complete population of equipment funded with federal research and development dollars were not inspected. By September 30, 2025, the Dartmouth Health system created a federal equipment tracking procedure, and updated property records to include details required by 2 CFR section 200.313. Management will perform a full physical inventory of research equipment for the year ending September 30, 2026 and update the clinical inventory database to reflect the results of the inventory to be able to remediate the finding. Individual Responsible: John Muhlen, System Vice President of Corporate Finance Anticipated Completion Date: September 30, 2026

View Audit 406039

Finding 1221786 (2025-001)

Material Weakness 2025

W.s. Housing Development Fund Co., Inc. Seneca Woods Apts #014-Ee171

NY

Special Tests & Provisions Questioned Costs Cash Management

Corrective Action Plan – Single Audit Finding Entity Name: W.S. Housing Development Company, Inc. Audit Period: For the year Ended September 30, 2025 Finding Reference Number: 14.157 Federal Program: Supportive Housing for the Elderly (Section 202) 1. Audit Finding Summary Describe the audit finding...

Corrective Action Plan – Single Audit Finding Entity Name: W.S. Housing Development Company, Inc. Audit Period: For the year Ended September 30, 2025 Finding Reference Number: 14.157 Federal Program: Supportive Housing for the Elderly (Section 202) 1. Audit Finding Summary Describe the audit finding and the specific noncompliance identified by the auditor. In accordance with 24 CFR 891.400(e), a separate interest-bearing project fund account shall be maintained in a depository or depositories which are members of the Federal Deposit Insurance Corporation or National Credit Union Share Insurance Fund and all tenant payments, charges, income and revenues arising from project operation or ownership shall be deposited to this account. 2. Root Cause Explain the underlying reasons for the finding, such as process gaps, training issues, or lack of controls. Subsequent to the initial rental assistance contract, changes to HUD regulations resulted in the requirement that the project fund account be an interest-bearing account. This change was an oversight by the Company's management. 3. Corrective Actions Action Item: Use an interest-bearing account for project funds Responsible Person: Chief Financial Officer Completion Date: TBD Status: In process 4. Monitoring Plan Describe how the implementation of corrective actions will be monitored and evaluated. Management inquired with the bank and deemed the cost outweighs the benefit due to the fees charged for an interest bearing account exceeding the interest that would be earned. 5. Contact Information Name: Aaron Hejmowski Title: Chief Financial Officer Phone: 716-884-7791 Email: ahejmowski@belmonthousingwny.org

View Audit 406030

Finding 1221785 (2025-002)

Material Weakness 2025

Housing Authority of the City of Orange

TX

HUD Housing Programs Special Tests & Provisions

Finding 2025-002: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Federal Catalog Numbers: 14.871 Noncompliance – N. Special Tests and Provisions – HQS Enforcement Non Compliance Material to the Financial Statements: Yes Mate...

Finding 2025-002: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Federal Catalog Numbers: 14.871 Noncompliance – N. Special Tests and Provisions – HQS Enforcement Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Special Tests and Provisions Criteria: HQS Enforcement. The PHA must inspect the unit leased to a family at least annually to determine if the unit meets the Housing Quality Standards (HQS) and the Authority must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). For units that fail inspection the PHA must correct all life threatening HQS deficiencies within 24 hours and all other deficiencies within 30 days. Condition: Based upon inspection of the Authority’s files and on discussions with management, the Authority did not properly abate (2) housing assistance payments. Context: Of a sample size of twenty-five (25) failed inspections, the Authority did not properly abate two (2) out of twenty-five (25) housing assistance payments. As a result, the Authority was not in compliance with the HQS as required by 24 CFR sections 982.158(d) and 982.405(b). Known Questioned Costs: $18,690 Finding 2025-002 (continued): Cause: There is a material weakness in internal controls over compliance for the special tests and provisions type of compliance related to HQS enforcement. Controls were not operating effectively to ensure housing assistance payments were properly abated. Effect: The Section 8 Housing Choice Vouchers program is in material non-compliance with the special tests and provisions type of compliance related to HQS enforcement. Recommendation: We recommend that the Authority implement a process whereby Authority personnel are hired and trained on HQS enforcement that will reasonably assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority has recognized the deficiencies in the Section 8 Housing Choice Vouchers Programs and has implemented a process to prevent the same issues from occurring. The Authority will also continue to train staff on HQS enforcement and enhance it's internal control procedures that will ensure compliance with federal regulations. Tracy Thomas is considered the responsible person and the corrective action will be completed by September 30, 2026.

View Audit 406028

Finding 1221784 (2025-001)

Material Weakness 2025

Housing Authority of the City of Orange

TX

HUD Housing Programs

Finding 2025-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Assistance Listing Numbers: 14.871 Non Compliance - E. Eligibility - Tenant Files Non Compliance Material to the Financial Statements: No Significant deficiency...

Finding 2025-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Assistance Listing Numbers: 14.871 Non Compliance - E. Eligibility - Tenant Files Non Compliance Material to the Financial Statements: No Significant deficiency in Internal Control over Compliance for Eligibility Finding 2025-001 (continued) Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). These files are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were documents that were unavailable for examination at the time of audit. Context: There are approximately 814 units. Of a sample size of twenty-one (21) tenant files, one (1) tenants' HUD-50058 form contained an income miscalculation during the tenant's annual reexamination process. Our sample size is statistically valid. Known Questioned Costs: $13,000 Cause: There is a significant deficiency in internal controls for the Section 8 Housing Choice Vouchers Program over the compliance for the eligibility type of compliance related to the maintenance of tenant files. Controls were not operating effectively to ensure tenant income calculations reported on the HUD-50056 form were properly reviewed for accuracy and compliance with HUD requirements. Effect: The Section 8 Housing Choice Vouchers Program is in non-compliance with the eligibility requirements of the program. Errors in tenant income calculations and recertification documentation could result in participants being determined eligible based on inaccurate information, which may lead to noncompliance with HUD eligibility requirements and improper housing assistance payments. Recommendation: We recommend that the Authority strengthen and consistently apply internal control procedures over tenant eligibility determinations and HUD-50058 recertification reviews to help ensure compliance with HUD requirements and the Uniform Guidance. Views of responsible officials and planned corrective action: The Authority has recognized the deficiencies in the Section 8 Housing Choice Vouchers Program and will train staff on the proper maintenance of tenant files and implement internal control procedures that will ensure compliance with federal regulations. Tracy Thomas is considered the responsible person and the corrective action will be completed by September 30, 2026.

View Audit 406028

Finding 1221767 (2025-001)

Material Weakness 2025

Day One New York, INC

NY

Allowable Costs / Cost Principles § 200.328 § 200.403 § 200.405 § 200.430

Corrective Action Plan Finding 2025-001 – Allowable Costs Requirement – Time and Effort Reporting for Salaries Corrective Action: Management concurs with the findings. Day One will formalize and implement written procedures governing the documentation, review, and reconciliation of personnel costs c...

Corrective Action Plan Finding 2025-001 – Allowable Costs Requirement – Time and Effort Reporting for Salaries Corrective Action: Management concurs with the findings. Day One will formalize and implement written procedures governing the documentation, review, and reconciliation of personnel costs charged to federal awards. Employees whose compensation is charged, in whole or in part, to federal awards, will be required to complete after-the-fact timesheets that accurately reflect the work performed and the total activity for which they are compensated. The documentation will be reviewed and approved by the employee's supervisor. The Finance Director is responsible for reconciling payroll allocations charged to federal awards to the certified time and effort documentation on a regular basis and ensuring that any differences identified are reviewed and corrected in a timely manner. The Finance Director is responsible for supporting documentation for payroll allocations and reconciliations is maintained in accordance with Day One's record retention policies. Day One will update its written policies and procedures to reflect these requirements and has provided training to employees and supervisors responsible for completing, reviewing, and approving time and effort documentation. The Executive Director will periodically review compliance with these procedures as part of Day One’s internal control monitoring process. We will also do a final year-end review of time and effort allocations and certification. These corrective actions are intended to strengthen internal controls over payroll allocations and ensure that personnel costs charged to federal awards are adequately documented, properly allocated, and supported in accordance with 2 CFR Part 200. Responsible Official: • Anne Patterson, Executive Director – Oversight of implementation and ongoing compliance. Anticipated Completion Date: The corrective actions will be implemented and effective as of September 1, 2026. We have already implemented this process for FY2025. Once the process is complete, Day One will update, after-the-fact documentation and approval to date and will continue the process thereafter.

View Audit 406022

Finding 1221765 (2025-001)

Material Weakness 2025

Senior Citizens Housing Development Corporation of Ville Platte

FL

HUD Housing Programs Subrecipient Monitoring Reporting

Oversight Agency for Audit, Senior Citizens Housing Development Corporation of Ville Platte respectfully submits the following corrective action plan for the year ended September 30, 2025. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suit...

Oversight Agency for Audit, Senior Citizens Housing Development Corporation of Ville Platte respectfully submits the following corrective action plan for the year ended September 30, 2025. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 201, Coral Springs, Florida 33067 Audit period: October 1, 2024 through September 30, 2025 The finding from the September 30, 2025 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. SECTION III – FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT FINDING No. 2025-001:Section 202 Supportive Housing for the Elderly, ALN 14.157 Recommendation: The Project should implement procedures for compliance with all HUD regulations and ensure that all supporting documents are appropriately retained. Action Taken: Management has implemented procedures to ensure compliance with HUD requirements related to utility allowances and document retention. The Project will perform and document an annual utility allowance review and analysis in accordance with HUD regulations. Supporting documentation used in the analysis, including utility rate information and calculation worksheets, will be maintained in the Project's compliance files and retained in accordance with HUD record-retention requirements. Management has also established procedures to ensure that all compliance-related documentation is properly organized, reviewed, and retained to support future audits and monitoring reviews. Responsibility for maintaining the utility allowance analysis and related supporting documentation has been assigned to designated management personnel, and periodic reviews will be performed to verify that required records are complete and accessible. These corrective actions are expected to be fully implemented by September 30, 2026. If the Oversight Agency for Audit has questions regarding this plan, please call Irene Phillips at 954-835-9200. Sincerely yours, Irene Phillips CFO

View Audit 406018

Finding 1221764 (2025-001)

Material Weakness 2025

Pine Grove Housing Development Corporation, Dba Pine Grove Apts

FL

Questioned Costs HUD Housing Programs Reporting

Oversight Agency for Audit, Pine Grove Housing Development Corporation respectfully submits the following corrective action plan for the year ended September 30, 2025. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 201, Coral Springs,...

Oversight Agency for Audit, Pine Grove Housing Development Corporation respectfully submits the following corrective action plan for the year ended September 30, 2025. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 201, Coral Springs, Florida 33067 Audit period: October 1, 2024 through September 30, 2025 The finding from the September 30, 2025 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. SECTION III – FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT FINDING NO. 2025-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Recommendation: Management should enhance their procedures to ensure that all payroll disbursements are for work performed at the Project. Action Taken: Payroll procedures have been enhanced to ensure all employee changes are done timely. If the audit Oversight Agency has questions regarding this plan, please call Irene Phillips at 954-835-9200. Sincerely yours, Irene Phillips CFO

View Audit 406015

Finding 1221763 (2025-002)

Material Weakness 2025

City of Biloxi

MS

Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking Questioned Costs § 200.317 § 200.318 § 200.327

Management has since adopted a formal policy stipulating compliance with State of Mississippi procurement and Federal procurement requirements. A written standard of conduct for employees engaged in contract selection, award, and administration is in process and expected to be formally adopted in th...

Management has since adopted a formal policy stipulating compliance with State of Mississippi procurement and Federal procurement requirements. A written standard of conduct for employees engaged in contract selection, award, and administration is in process and expected to be formally adopted in the near future. Completion Date: Pending Name of Contact Person Responsible for Corrective Action Plan: Rachel Quave

View Audit 406013

Finding 1221757 (2025-001)

Material Weakness 2025

City of Biloxi

MS

Reporting Questioned Costs

The City will reconcile its grant revenue and expenditure reconciliation spreadsheet to the Schedule of Expenditures of Federal Awards to ascertain the schedule is complete and accurate. Completion Date: Pending Name of Contact Person Responsible for Corrective Action Plan: Diana Thornton

View Audit 406013

Finding 1221756 (2025-002)

Material Weakness 2025

The Housing Authority of the City of Waco, Texas

TX

We hired a new HCV Program Director and they are working with the Field Office with a goal of the 2026 SEMAP score getting us out of trouble designation.

View Audit 406010

Finding 1221753 (2025-001)

Material Weakness 2025

The Housing Authority of the City of Waco, Texas

TX

In January of 2025 we created an internal compliance department and started discovering we had a compliance problem. In March we had AMA Consulting Group start the process of identifying the problem and their report is dated March 13, 2025. We are currently working to ensure all files are accurate a...

In January of 2025 we created an internal compliance department and started discovering we had a compliance problem. In March we had AMA Consulting Group start the process of identifying the problem and their report is dated March 13, 2025. We are currently working to ensure all files are accurate and have developed a four-phase corrective action process that we have implemented. The corrective action is working and we anticipate completion by September 30, 2026.

View Audit 406010

Finding 1221750 (2025-001)

Material Weakness 2025

West Kentucky Rural Telephone Cooperative Corporation, Inc.

KY

Procurement, Suspension & Debarment Subrecipient Monitoring

Corrective Action Plan WK&T respectfully submits the following corrective action plan for the year ended December 31, 2025. Finding: 2025-001 –Suspension and Debarment Responsible Individuals: Bhavini Sokhey, Chief Financial Officer Anticipated Completion Date: Implemented Finding Summary: Lack of d...

Corrective Action Plan WK&T respectfully submits the following corrective action plan for the year ended December 31, 2025. Finding: 2025-001 –Suspension and Debarment Responsible Individuals: Bhavini Sokhey, Chief Financial Officer Anticipated Completion Date: Implemented Finding Summary: Lack of documented policies and procedures related to suspension and debarment Corrective Action Plan: •The Company has developed and implemented formal written policies and procedures to addresscompliance with federal suspension and debarment requirements. •Prior to awarding any contract funded with federal or state funds, the Company will verify that thevendor or contractor is not suspended or debarred by reviewing the SAM.gov Exclusions database.Documentation of the verification will be retained in the procurement file. •The Company will require all contractors participating in federally or state-funded projects toexecute a certification confirming they are not debarred, suspended, proposed for debarment,declared ineligible, or voluntarily excluded from participation in such programs. •The procurement and grant administration staff are responsible for performing and documentingthese procedures. Compliance will be reviewed as part of the Company's procurement process andongoing grant oversight to ensure adherence to federal and state requirements.

View Audit 406009

Finding 1221742 (2025-004)

Material Weakness 2025

Women's Center

MI

Questioned Costs Subrecipient Monitoring Reporting

2025-004 – COMPLIANCE AND CONTROLS OVER REPORTING Corrective Action Plan: The Organization has developed a centralized reporting calendar identifying all required report filing deadlines. Designated staff will utilize the reporting calendar to monitor and ensure the timely submission of all required...

2025-004 – COMPLIANCE AND CONTROLS OVER REPORTING Corrective Action Plan: The Organization has developed a centralized reporting calendar identifying all required report filing deadlines. Designated staff will utilize the reporting calendar to monitor and ensure the timely submission of all required reports. The reporting calendar will be incorporated into the Organization's succession planning and reviewed regularly to ensure compliance with all reporting requirements and continuity during staff transitions. Responsible Party(ies): • Executive Director • Finance Manager Anticipated Date of Completion: September 30, 2026

View Audit 406001

Finding 1221739 (2025-003)

Material Weakness 2025

Women's Center

MI

Questioned Costs Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking

2025-003 INTERNAL CONTROLS OVER PAYROLL AND BENEFITS ALLOCATIONS Corrective Action Plan: The Organization has implemented a pre-payroll review process requiring supervisors to verify the accuracy of employee timesheets before submitting them to the Finance Manager. The Finance Manager will conduct a...

2025-003 INTERNAL CONTROLS OVER PAYROLL AND BENEFITS ALLOCATIONS Corrective Action Plan: The Organization has implemented a pre-payroll review process requiring supervisors to verify the accuracy of employee timesheets before submitting them to the Finance Manager. The Finance Manager will conduct a secondary review of timesheets before entering and processing payroll. In addition, the Organization has implemented a new benefits software administration system to improve the accuracy of benefit tracking and allocations. Any discrepancies identified during the review process will be corrected promptly before payroll is finalized. Responsible Party(ies): • Finance Manager Anticipated Date of Completion: September 30, 2026

View Audit 406001

Finding 1221736 (2025-001)

Material Weakness 2025

City of Daphne

AL

Procurement, Suspension & Debarment Special Tests & Provisions § 200.326

Condition: We noted that the applicable wage determination information was not included in the funding agreement and related contract documentation for the project selected for testing. The City relied on Alabama Department of Transportation (ALDOT) to ensure all federally required provisions were i...

Condition: We noted that the applicable wage determination information was not included in the funding agreement and related contract documentation for the project selected for testing. The City relied on Alabama Department of Transportation (ALDOT) to ensure all federally required provisions were included in the bid specifications and contracts. Although certified payrolls were submitted and the contractor complied with prevailing wage requirements, the required documentation was not formally included in the agreement package. Criteria: Federal regulations require that contracts and subcontracts for construction projects in excess of $2,000 financed with federal assistance funds include the applicable prevailing wage provisions and wage determinations under the Wage Rate Requirements (Davis-Bacon Act). In addition, contractors and subcontractors are required to submit weekly certified payrolls for each week work is performed. These requirements are established by 40 USC 3141-3147; 29 CFR Part 5; and 2 CFR section 200.326. Cause: The City relied on ALDOT's review and approval process for inclusion of required federal labor standard provisions and did not perform an independent verification that all Wage Rate Requirement provisions and wage determinations were included in the executed agreements.Effect: Failure to include all required Wage Rate Requirement provisions and documentation in construction agreements could result in noncompliance with federal requirements and increases the risk that contractors may not be properly informed of applicable prevailing wage requirements. Recommendation: We recommend the City implement procedures to independently verify that all federally required contract provisions, including applicable wage determinations and Davis-Bacon provisions, are included in bid specifications, contracts, and funding agreements prior to execution, even when projects are administered in coordination with third parties such as ALDOT. View of Responsible Officials and Planned Corrective Action: Management stated the project was administered through ALDOT and the City historically relied on ALDOT to ensure all required federal provisions were included in project documentation. Management noted that the funding agreement for this project did not include the wage determination information, although ALDOT later confirmed the requirements were applicable and certified payrolls were submitted. Management further indicated the contractor regularly performs ALDOT work and complied with the requirements. The City has updated its procedures to independently verify inclusion of all required federal compliance provisions going forward

View Audit 405996

Finding 1221733 (2025-001)

Material Weakness 2025

Rape Crisis Center of Collin County

TX

Questioned Costs Allowable Costs / Cost Principles Cash Management

New automated financial systems have been implemented to reduce error, and management has added an additional review step for all federal reimbursement requests to verify that payroll and fringe benefit costs are accurately calculated and allocated before submission. Reimbursement requests have and ...

New automated financial systems have been implemented to reduce error, and management has added an additional review step for all federal reimbursement requests to verify that payroll and fringe benefit costs are accurately calculated and allocated before submission. Reimbursement requests have and will be reconciled to payroll reports, time records, and allocation schedules to ensure costs are not duplicated. Staff responsible for grant financial reporting have been reminded of the required review procedures, and the Finance and/or Executive Director will perform a secondary review of all reimbursement requests. These measures are intended to prevent duplicate charges and ensure compliance with federal allowable cost requirements.

View Audit 405988

Finding 1221732 (2025-006)

Material Weakness 2025

Newberry College

SC

Cash Management Student Financial Aid

Cash Management Drawdowns from G5 Planned Corrective Action: Management acknowledges the audit finding regarding the inability to provide documentation demonstrating that Federal Direct Loan and Pell Grant funds were disbursed to students within the required timeframe following drawdown. While the C...

Cash Management Drawdowns from G5 Planned Corrective Action: Management acknowledges the audit finding regarding the inability to provide documentation demonstrating that Federal Direct Loan and Pell Grant funds were disbursed to students within the required timeframe following drawdown. While the College performed end-of-term reconciliations between student accounts and G5 to ensure no excess cash was maintained, documentation supporting timely disbursement at the student level was not consistently retained. Under the leadership of the Assistant Vice President (AVP) for Financial Aid and the AVP for Finance, the College has implemented a revised operating procedure to track cash management drawdowns on a student-by-student basis. A shared tracking workbook is now used by both offices to coordinate drawdowns and monitor the timing of disbursements. This enhanced process provides improved documentation and oversight to ensure compliance with federal requirements, including the timely disbursement of funds. Person Responsible for Corrective Action Plan: Missy Perry, AVP for Financial Aid, Landee Buzhardt, Director of Student Accounts, and Carrie Morris, AVP for Finance Anticipated Date of Completion: Completed.

View Audit 405985

Finding 1221730 (2025-005)

Material Weakness 2025

Newberry College

SC

Student Financial Aid Questioned Costs Eligibility

Need Analysis Planned Corrective Action: Management acknowledges the audit finding related to errors in need analysis, including instances of over-awarded Federal Direct Loans and under-awarded Pell Grants. These errors were the result of deficiencies in oversight and review processes within the Fin...

Need Analysis Planned Corrective Action: Management acknowledges the audit finding related to errors in need analysis, including instances of over-awarded Federal Direct Loans and under-awarded Pell Grants. These errors were the result of deficiencies in oversight and review processes within the Financial Aid Office during the audit period. The identified discrepancies have been corrected. To address this issue, the College has implemented significant changes within the Financial Aid Office, including elevating leadership to the Assistant Vice President (AVP) level and hiring experienced, qualified staff. These changes strengthen both technical expertise and supervisory capacity. Additionally, the College has enhanced review procedures related to awarding, including increased oversight of need analysis calculations and enrollment verification prior to disbursement. These measures are intended to improve accuracy and ensure compliance with Title IV requirements. Management believes these corrective actions have addressed the root causes of the finding and will continue to monitor awarding processes to ensure ongoing compliance. Person Responsible for Corrective Action Plan: Missy Perry, AVP for Financial Aid Anticipated Date of Completion: June 30, 2026

View Audit 405985

Finding 1221728 (2025-004)

Material Weakness 2025

Newberry College

SC

Student Financial Aid

Inaccurate Return of Title IV Funds (R2T4) Planned Corrective Action: Management acknowledges the audit finding regarding an inaccurate Return of Title IV (R2T4) calculation. In the instance identified, an incorrect number of days was used for a student enrolled in a modular course, resulting in an ...

Inaccurate Return of Title IV Funds (R2T4) Planned Corrective Action: Management acknowledges the audit finding regarding an inaccurate Return of Title IV (R2T4) calculation. In the instance identified, an incorrect number of days was used for a student enrolled in a modular course, resulting in an over-return of $332 in Federal Direct Loans and $419 in Pell Grant funds. The College has addressed this issue through a comprehensive restructuring of the Financial Aid Office. Leadership of the office has been elevated from a director-level position to an Assistant Vice President (AVP) role, and the office has been restaffed with experienced and qualified personnel. In addition, the College has reinforced training and review procedures related to R2T4 calculations, including increased supervisory oversight to ensure accuracy, particularly for students enrolled in modular coursework. Ongoing monitoring will be performed to ensure continued compliance. Person Responsible for Corrective Action Plan: Missy Perry, AVP for Financial Aid Anticipated Date of Completion: June 30, 2026

View Audit 405985

Finding 1221726 (2025-003)

Material Weakness 2025

Newberry College

SC

Student Financial Aid Reporting Eligibility

Enrollment Reporting to NSLDS Planned Corrective Action: Management acknowledges the audit finding regarding untimely and inaccurate reporting of enrollment information to the National Student Loan Data System (NSLDS). The issue was primarily due to a lack of awareness regarding discrepancies betwee...

Enrollment Reporting to NSLDS Planned Corrective Action: Management acknowledges the audit finding regarding untimely and inaccurate reporting of enrollment information to the National Student Loan Data System (NSLDS). The issue was primarily due to a lack of awareness regarding discrepancies between reporting through the National Student Clearinghouse to the NSLDS, as well as complications following the College’s recent upgrade to Jenzabar One (J1). After the upgrade, certain internal reports did not function as expected, and resolving these reporting issues required additional time and coordination between the Director of Institutional Research (IR) and the Registrar. The Director of IR has continued to work in coordination with the Registrar and the Assistant Vice President (AVP) for Financial Aid to ensure accurate and timely reporting to both NSLDS and the Clearinghouse. The Director of IR now provides biweekly status reports to the Vice President for Administration to support ongoing oversight and accountability. Person Responsible for Corrective Action Plan: Kristy Parker, Registrar Anticipated Date of Completion: June 30, 2026

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Finding 1221724 (2025-001)

Material Weakness 2025

Sterling Heights Housing Commission

MI

Allowable Costs / Cost Principles Questioned Costs HUD Housing Programs

2025-001 – ALN 14.850 – Public Housing Operating Fund – Activities Allowed or Unallowed Planned Corrective Action: The Executive Director acknowledges the finding and is following the auditor’s recommendation as presented in the Audit Report. The Authority is now drawing down its CFP and is not usin...

2025-001 – ALN 14.850 – Public Housing Operating Fund – Activities Allowed or Unallowed Planned Corrective Action: The Executive Director acknowledges the finding and is following the auditor’s recommendation as presented in the Audit Report. The Authority is now drawing down its CFP and is not using operating funds for CFP activities. Person Responsible for Correction of Finding: Wanda Allen, Executive Director Anticipated Completion Date: September 30, 2026

View Audit 405984

Corrective Action Plans

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