Corrective Action Plans

Finding 1215787 (2025-101)

Material Weakness 2025

State of Connecticut Drinking Water Fund - State Revolving Fund

CT

Internal Control / Segregation of Duties Special Tests & Provisions Procurement, Suspension & Debarment

Recommendation: The Department of Transportation should strengthen internal controls to ensure that contractors and subcontractors submit required payroll records when performing Davis-Bacon and Related Acts covered work and should promptly take corrective action when a contractor or subcontractor f...

Recommendation: The Department of Transportation should strengthen internal controls to ensure that contractors and subcontractors submit required payroll records when performing Davis-Bacon and Related Acts covered work and should promptly take corrective action when a contractor or subcontractor fails to submit the required records. Corrective Action Plan as Reported by the Department of Transportation: 1. The projects identified in the audit support were Projects 0092-0686; 0156-0181; and 0053-0196. For those projects, the respective district administrative offices have been contacted and instructed to initiate letters to the Contractors identifying the missing payrolls and requiring submission in AASHTOWare Project within 14 days. The respective districts will monitor compliance. 2. The current procedures will be reviewed and updated to clarify the steps to be taken for monitoring submission of payrolls and what to do if they are not submitted within a certain timeframe. The updated procedure is estimated to be in place by April 1, 2026. Anticipated Completion Date: April 1, 2026 Department of Transportation Contact Person: Christopher Angelotti, Transportation Division Chief Christopher.Angelotti@ct.gov (860) 594-2669

View Audit 402418

Finding 1215786 (2025-100)

Material Weakness 2025

State of Connecticut Drinking Water Fund - State Revolving Fund

CT

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Procurement, Suspension & Debarment § 200.317 § 200.403

Recommendation: The Department of Transportation should strengthen internal controls over consultant payments for extra work. Corrective Action Plan as Reported by the Department of Transportation: The CTDOT Transit Design Unit has immediately put in-place a corrective action plan, which will be com...

Recommendation: The Department of Transportation should strengthen internal controls over consultant payments for extra work. Corrective Action Plan as Reported by the Department of Transportation: The CTDOT Transit Design Unit has immediately put in-place a corrective action plan, which will be completed by January 30, 2026. As part of this action plan, when signing off on invoices in the future, the Project Manager will ensure the date of the invoice refers to the correct payment mechanism or extra work letter in accordance with our established policies. This will strengthen internal controls and reviews over payments for all fee letters to ensure it follows established policies and only pay for properly authorized extra work. In addition to internal actions, the consultant project team will be counseled for submitting an invoice that does not follow CTDOT policies. Anticipated Completion Date: January 30, 2026 Department of Transportation Contact Person: Jonathan Kang, Transportation Supervising Engineer Jonathan.Kang@ct.gov, (860) 594-2754

View Audit 402418

Finding 1215785 (2025-575)

Material Weakness 2025

State of Connecticut Drinking Water Fund - State Revolving Fund

CT

Subrecipient Monitoring Matching / Level of Effort / Earmarking § 200.303 § 200.306 § 200.332

Recommendation: The Judicial Branch should strengthen internal controls to ensure it complies with federal subrecipient monitoring requirements for the Crime Victim Assistance program. Corrective Action Plan as Reported by the Judicial Branch: The Judicial Branch Office of Victim Services (OVS) agre...

Recommendation: The Judicial Branch should strengthen internal controls to ensure it complies with federal subrecipient monitoring requirements for the Crime Victim Assistance program. Corrective Action Plan as Reported by the Judicial Branch: The Judicial Branch Office of Victim Services (OVS) agrees to strengthen its internal controls as described below to comply with federal subrecipient monitoring requirements for the Victims of Crime Act Assistance (VOCA) Program. In 2025, OVS performed site visits for four VOCA-funded programs and completed financial-desk reviews of monthly or quarterly financial reports for all programs. That year, OVS experienced personnel turnover in its three-employee Fiscal Services Unit, notably the separation from state service of a Program Manager and a Court Planner, who together performed OVS’ programmatic site visits of VOCA-funded programs. Also, there was a significant increase in workload resulting from OVS’ contributions to the 2024-2025 VOCA request-for-proposal process. In response, staff outside the unit contributed while managing other assigned duties, a Program Manager and Grants and Contract Specialist were hired to restore the unit to its three-employee configuration, the new employees received training on subrecipient monitoring policies and procedures, and a revised subrecipient site visit plan was developed and has begun being implemented. To strengthen internal controls, OVS has developed a revised site visit plan for the remaining VOCA-funded programs scheduled to receive site visits in 2025. April 15, 2026, is the anticipated date for OVS to complete the site visits. OVS has completed sending letters to the subrecipients operating the VOCA-funded programs. The letters request supporting documentation, which is programmatic and financial in nature, in accordance with OVS administrative policy and procedure. Also, the letters inform subrecipients that site visits will commence in accordance with a revised site visit plan. Anticipated Completion Date: April 15, 2026 Judicial Branch Contact Person: Marc Pelka, Office of Victim Services Director marc.pelka@jud.ct.gov (860) 263-2760

View Audit 402418

Finding 1215783 (2025-727)

Material Weakness 2025

State of Connecticut Drinking Water Fund - State Revolving Fund

CT

HUD Housing Programs

Recommendation: The Department of Housing should promptly submit required financial information to the Department of Housing and Urban Development in accordance with Title 24 U.S. Code of Federal Regulations Part 5.801. Corrective Action Plan as Reported by the Department of Housing: We agree with t...

Recommendation: The Department of Housing should promptly submit required financial information to the Department of Housing and Urban Development in accordance with Title 24 U.S. Code of Federal Regulations Part 5.801. Corrective Action Plan as Reported by the Department of Housing: We agree with the finding. The Department of Housing (DOH) submitted its 2019 audit in August 2025 and is currently awaiting the Auditor’s approval. With the new stablished Section-8 Division, the additional support has made a great impact, and it has helped expedite this work. However, the process is time consuming because we cannot submit audits for subsequent years until the prior year’s audit is approved. Once the 2019 audit is approved, we will begin work on the 2020 audit and continue sequentially until we are fully up to date. Our goal is to be fully caught up by December 31, 2027. Anticipated Completion Date: Ongoing Department of Housing Contact Person: Melvin Castillo, Asst. Chief Fiscal Admin. Services Natasha Khemraj, Accounting Program Manager (860) 899-6585

View Audit 402418

Finding 1215776 (2025-801)

Material Weakness 2025

State of Connecticut Drinking Water Fund - State Revolving Fund

CT

Special Tests & Provisions Subrecipient Monitoring Eligibility

Recommendation: The Department of Mental Health and Addiction Services should strengthen internal controls to ensure providers maintain sufficient and current documentation to support the reasonableness of rent for the Continuum of Care Program. Corrective Action Plan as Reported by the Department o...

Recommendation: The Department of Mental Health and Addiction Services should strengthen internal controls to ensure providers maintain sufficient and current documentation to support the reasonableness of rent for the Continuum of Care Program. Corrective Action Plan as Reported by the Department of Mental Health and Addiction Services: DMHAS Housing and Homeless Services Unit verbally instructed providers that they must complete, prior to client move-in, accurately, sign and retain documentation regarding the comparable units when completing the Rent Reasonableness on December 17, 2024. On December 24, 2024 and December 19, 2025, these instructions were sent to the providers via email. On February 4, 2025, DMHAS updated the CoC Operations Guide with the full instructions for completing the Rent Reasonableness and the retention of supporting documentation. DMHAS will continue to randomly review a sample of Rent Reasonable documents throughout the year and will provide training and technical assistance to providers on the completion and retention of Rent Reasonableness documentation. Anticipated Completion Date: June 30, 2026 Department of Mental Health and Addiction Services Contact Person: Alice Minervino, Director, Housing and Homeless Services Alice.minervino@ct.gov (860) 418-6942

View Audit 402418

Finding 1215775 (2025-800)

Material Weakness 2025

State of Connecticut Drinking Water Fund - State Revolving Fund

CT

Eligibility HUD Housing Programs Internal Control / Segregation of Duties

Recommendation: The Department of Mental Health and Addiction Services should strengthen internal controls to ensure providers maintain sufficient documentation to support participant eligibility and accurately calculate client income and rental assistance payments in the Continuum of Care Program. ...

Recommendation: The Department of Mental Health and Addiction Services should strengthen internal controls to ensure providers maintain sufficient documentation to support participant eligibility and accurately calculate client income and rental assistance payments in the Continuum of Care Program. Corrective Action Plan as Reported by the Department of Mental Health and Addiction Services: In 2026, DMHAS will continue to conduct trainings on CoC Fiscal Requirements. As in the past, these trainings will be recorded and available for viewing on the Connecticut Balance of State Continuum of Care (CTBOS) website. DMHAS Housing and Homeless Services Unit staff conduct mandatory in-person and virtual Technical Assistance visits for the funded agencies to provide guidance and training on the United States Department of Housing and Urban Development (HUD) required eligibility regulations Income Calculation and Documentation. On November 1, 2023, DMHAS implemented a Microsoft Excel Workbook that is fully inclusive of the DMHAS required paperwork, including the income calculation, lease, contract, as well as initial and recertification which standardizes the documents for each participant. On December 19, 2025, the workbook was updated to enhance internal controls over the use of Rent Reasonableness forms and calculations of client income and rental assistance payments. The DMHAS Housing and Homeless Services Unit will continue to work with the DMHAS Fiscal Services Bureau to ensure payments are made accurately, correctly and on-time. Anticipated Completion Date: June 30, 2026 Department of Mental Health and Addiction Services Contact Person: Alice Minervino, Director, Housing and Homeless Services Alice.minervino@ct.gov (860) 418-6942

View Audit 402418

Finding 1215774 (2025-028)

Material Weakness 2025

State of Connecticut Drinking Water Fund - State Revolving Fund

CT

Special Tests & Provisions Equipment & Real Property Management Matching / Level of Effort / Earmarking § 200.303

Recommendation: The Department of Social Services should strengthen internal controls to ensure that it consistently secures, tracks, and records returned cards for the Summer EBT program. Corrective Action Plan as Reported by the Department of Social Services: The Department agrees with this findin...

Recommendation: The Department of Social Services should strengthen internal controls to ensure that it consistently secures, tracks, and records returned cards for the Summer EBT program. Corrective Action Plan as Reported by the Department of Social Services: The Department agrees with this finding. However, the Department believes that there are proper internal controls to ensure the security of returned cards. There was no log maintained by the Department but the controls in place reduced the risk of benefits being used incorrectly to an acceptable level. The returned cards were destroyed, and all unused benefits were expunged. Anticipated Completion Date: N/A Department of Social Services Contact Person: Andy Davis, Fiscal Administrative Manager 2 860-424-5709

View Audit 402418

Finding 1215773 (2025-027)

Material Weakness 2025

State of Connecticut Drinking Water Fund - State Revolving Fund

CT

Internal Control / Segregation of Duties Eligibility Reporting § 200.303

Recommendation: The Department of Social Services should strengthen internal controls to identify the agency responsible for each client’s eligibility determination and document benefit iteration approvals for the Summer Electronic Benefits Transfer Program for Children. Corrective Action Plan as Re...

Recommendation: The Department of Social Services should strengthen internal controls to identify the agency responsible for each client’s eligibility determination and document benefit iteration approvals for the Summer Electronic Benefits Transfer Program for Children. Corrective Action Plan as Reported by the Department of Social Services: The Department disagrees with this finding. Condition #1: Eligibility for the Summer EBT program is established through multiple pathways: receipt of Supplemental Nutrition Assistance Program (SNAP) benefits, Temporary Family Assistance (TFA), or HUSKY A coverage, and through applying for and receiving an eligibility determination for either the National School Lunch Program or the Summer EBT program itself. Determining eligibility is a shared responsibility between DSS and the State Department of Education (SDE), and children qualify through multiple pathways simultaneously. DSS maintains a record within its eligibility system and compiles reports of all eligible children. When eligibility is established through any additional means, the child’s record is then analyzed against all previous issuances to ensure duplicate participation and double issuance does not occur. Title 7 CFR Part 292.16 (a)(5)(i) requires the Summer EBT agency to establish a master issuance file which contains all information needed to identify eligible children, issue Summer EBT benefits, record the participation activity for each household and supply all information necessary to fulfill reporting requirements. The agency is not required to specify which program(s) were used to determine eligibility, which is reasonable given that there may be multiple overlapping avenues of eligibility. The implication that DSS is somehow not compliant or able to identify the source of eligibility is inaccurate. DSS can identify this information on an individual basis through reviewing the child’s receipt of SNAP, TFA, HUSKY A, or through its ongoing coordination and communication with SDE. Condition #2: It is not a requirement of the business systems division to request approval for each issuance. Each year the Department issues benefits for this program in a consistent manner. Since there were no changes to the process during the audit period, approval was not sought for the issuances. Business systems would only seek approval if there was a change to the process. Anticipated Completion Date: N/A Department of Social Services Contact Person: Dan Giacomi, Program Division Director 860-424-5080

View Audit 402418

Finding 1215772 (2025-300)

Material Weakness 2025

State of Connecticut Drinking Water Fund - State Revolving Fund

CT

School Nutrition Programs

Recommendation: The State Department of Education should continue to pursue guidance from the U.S. Department of Agriculture to ensure it complies with the Federal Funding Accountability and Transparency Act reporting requirements. Corrective Action Plan as Reported by the State Department of Educat...

Recommendation: The State Department of Education should continue to pursue guidance from the U.S. Department of Agriculture to ensure it complies with the Federal Funding Accountability and Transparency Act reporting requirements. Corrective Action Plan as Reported by the State Department of Education: We agree with this finding. Following guidance from the U.S. Department of Agriculture, we have taken corrective actions to achieve compliance. Federal Funding Accountability and Transparency Act (FFATA) reporting has been completed for awards issued during fiscal years 2024 and 2025, with the exception of three entities that are currently experiencing delays in obtaining their respective Unique Entity Identifiers. FFATA reporting for fiscal year 2026 is currently underway, and reporting for fiscal years 2021, 2022, and 2023 will be completed as soon as all required data elements are obtained. We anticipate being fully compliant with past reporting by June 30, 2026. Anticipated Completion Date: June 30, 2026 State Department of Education Contact Person: Roger Persson, Chief of Fiscal/Administrative Services (860) 713-6667

View Audit 402418

Finding 1215734 (2025-001)

Material Weakness 2025

Volunteers of America Mid-States Inc. and Affiliates

KY

Reporting

Corrective Action Plan This corrective action plan was developed in response to the audit finding related to the timely submission of Federal Financial Reports (FFRs). The purpose of this plan is to improve the controls that were previously in place to ensure FFRs are filed accurately and by require...

Corrective Action Plan This corrective action plan was developed in response to the audit finding related to the timely submission of Federal Financial Reports (FFRs). The purpose of this plan is to improve the controls that were previously in place to ensure FFRs are filed accurately and by required deadlines. Finding While the audit noted that the control for tracking the timely submission of Federal Financial Reports (FFRs) under the Substance Abuse and Mental Health Services program could have been more robust at the time of reporting, it is important to recognize that this was an isolated administrative oversight rather than a systemic control failure. The organization has a strong history of compliance, as evidenced by its unmodified (clean) audit opinion, absence of material weaknesses or significant deficiencies in internal control over financial reporting, and its classification as a low-risk auditee. There were no questioned costs, penalties, or loss of funding associated with this issue, and all other compliance requirements for federal programs were met. Corrective Action The existing process has been improved to track FFR due dates and support timely submission. This process includes the use of Grantseeker, a grant tracking system that provides automated daily email reminders beginning two weeks prior to each submission deadline. Each reporting task is assigned to the staff member responsible for completion of the filing. Oversight and Monitoring Oversight of the process is provided by a Grantseeker system administrator, who monitors task assignments and reminder notifications to help ensure reporting deadlines are met. This additional level of review supports accountability and helps confirm that required filings are completed in a timely manner. Responsible Party The staff member assigned to the specific grant is responsible for preparing and submitting the applicable FFR. The Grantseeker system administrator is responsible for oversight of the tracking process. Expected Outcome Implementation of this corrective action is expected to strengthen internal controls over grant reporting and ensure timely submission of all required Federal Financial Reports.

View Audit 402408

Finding 1215731 (2025-001)

Material Weakness 2025

Center City Housing Corp.

MN

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.214

2025-001: Lack of Documentation of Suspension/Debarment Testing at Time of Procurement Federal Department: Department of Treasury Assistance Listing #: 21.027 Internal Controls Material Weakness & Noncompliance Category of Finding – Procurement, Suspension, and Debarment Name of contact person: Nanc...

2025-001: Lack of Documentation of Suspension/Debarment Testing at Time of Procurement Federal Department: Department of Treasury Assistance Listing #: 21.027 Internal Controls Material Weakness & Noncompliance Category of Finding – Procurement, Suspension, and Debarment Name of contact person: Nancy Cashman, Executive Director Corrective Action: Management plans to ensure, with all contracts, that the vendors sign a statement, either included in the contract or as a rider to the contract which confirms that they are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by a federal department or agency. Completion Date: May 5, 2026

View Audit 402404

Finding 1215730 (2025-004)

Material Weakness 2025

YWCA of Greater Portland

OR

Reporting Internal Control / Segregation of Duties

Management acknowledges the late submission and attributes the delay primarily to senior management turnover occurring during the audit completion period. Management has taken corrective action by clarifying roles and responsibilities for Single Audit submissions, establishing internal timelines ali...

Management acknowledges the late submission and attributes the delay primarily to senior management turnover occurring during the audit completion period. Management has taken corrective action by clarifying roles and responsibilities for Single Audit submissions, establishing internal timelines aligned with Uniform Guidance deadlines, and assigning oversight responsibility to ensure future Data Collection Forms and reporting packages are submitted timely.

View Audit 402403

Finding 1215729 (2025-003)

Material Weakness 2025

YWCA of Greater Portland

OR

Allowable Costs / Cost Principles Significant Deficiency Internal Control / Segregation of Duties § 200.430

Management agrees with the finding. The Agency’s current approach was designed to balance compliance needs with limited resources. Management will assess feasible improvements to its documentation practices to enhance support for payroll allocations to federal awards while remaining mindful of fundi...

Management agrees with the finding. The Agency’s current approach was designed to balance compliance needs with limited resources. Management will assess feasible improvements to its documentation practices to enhance support for payroll allocations to federal awards while remaining mindful of funding and staffing constraints.

View Audit 402403

Finding 1215726 (2025-003)

Material Weakness 2025

Baldwin Care Center, Inc.

WI

Matching / Level of Effort / Earmarking

2025-003 – Noncompliance with Required Debt Covenant Financial Ratio Federal Agency: U.S. Department of Agriculture, Rural Development, CFDA #10.766 Community Facilities Loans and Grants Cluster Corrective Action Plan: Management will continue to evaluate the Facility’s resident mix and manage resid...

2025-003 – Noncompliance with Required Debt Covenant Financial Ratio Federal Agency: U.S. Department of Agriculture, Rural Development, CFDA #10.766 Community Facilities Loans and Grants Cluster Corrective Action Plan: Management will continue to evaluate the Facility’s resident mix and manage resident days while continuing to contain related variable and fixed expenses to increase the Facility’s profitability. Responsible Party: Mariah Voeltz, Administrator Estimated completion date: June 30, 2026

View Audit 402402

Finding 1215724 (2025-002)

Material Weakness 2025

THE DIAPER BANK OF CONNECTICUT, INC.

CT

Internal Control / Segregation of Duties

The Organization will implement procedures to ensure that the grant reports filed are reconciled back to the underlying accounting data to ensure that both the grant reports and financial records are complete and accurate.

View Audit 402398

Finding 1215723 (2025-001)

Material Weakness 2025

THE DIAPER BANK OF CONNECTICUT, INC.

CT

Internal Control / Segregation of Duties Reporting

The Organization will implement procedures to ensure that the financial statements are prepared in accordance with generally accepted accounting principles. We will expand our staff to include a contracted Chief Financial Officer that has an understanding of US GAAP nonprofit accounting in order to ...

The Organization will implement procedures to ensure that the financial statements are prepared in accordance with generally accepted accounting principles. We will expand our staff to include a contracted Chief Financial Officer that has an understanding of US GAAP nonprofit accounting in order to provide the necessary amount of oversight such that our financial reporting on a monthly. quarterly, and annual basis will be in line with US GAAP principles

View Audit 402398

Finding 1215720 (2025-001)

Material Weakness 2025

Monroe School District No. 103

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Material Weakness

The district will implement a process to create and maintain documentation for supplemental contracts and substitute employees serving in vacant positions that clearly identifies the applicable cost objectives and includes employee signatures. These records will be retained and maintained for audit ...

The district will implement a process to create and maintain documentation for supplemental contracts and substitute employees serving in vacant positions that clearly identifies the applicable cost objectives and includes employee signatures. These records will be retained and maintained for audit purposes.

View Audit 402385

Finding 1215718 (2025-001)

Material Weakness 2025

Indiana Association of Soil and Water Conservation Districts, Inc.

IN

Matching / Level of Effort / Earmarking

Auditee: Indiana Association of Soil and Water Conservation Districts, Inc. Audit Firm: Agresta, Storms & O’Leary, PC Audit Period Ended September 30, 2025 Corrective Action Plan Prepared by: Name: Elizabeth Rice Position: Executive Director, Indiana Association of Soil and Water Conservation Distri...

Auditee: Indiana Association of Soil and Water Conservation Districts, Inc. Audit Firm: Agresta, Storms & O’Leary, PC Audit Period Ended September 30, 2025 Corrective Action Plan Prepared by: Name: Elizabeth Rice Position: Executive Director, Indiana Association of Soil and Water Conservation Districts, Inc. Telephone Number: 317-692-7325 A. Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Finding No. 2025-001 A. Comments on the Finding and Each Recommendation: Management agrees with the finding which was internally discovered during review of month end bank reconciliation. B. Action Taken or Planned on the Finding: Subsequent to year end, the Association reduced the December 2025 claim to account for the overpayment. Management will ensure any future discrepancies with claims are remedied in a timely manner.

View Audit 402382

Finding 1215717 (2025-001)

Material Weakness 2025

Trinity Housing CORP of Greeley

CO

Subrecipient Monitoring

Finding #2025-001 Comments on the Finding and Each Recommendation: During the year ended October 31, 2025, the Corporation made cash distributions of $36,802 to pay entity expenses. Action(s) taken or planned on the finding: Management agrees with the finding and the Board of Directors will reimburs...

Finding #2025-001 Comments on the Finding and Each Recommendation: During the year ended October 31, 2025, the Corporation made cash distributions of $36,802 to pay entity expenses. Action(s) taken or planned on the finding: Management agrees with the finding and the Board of Directors will reimburse the Corporation for the entity expenses paid.

View Audit 402381

Finding 1215710 (2025-003)

Material Weakness 2025

Marysville School District No. 25

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Internal Control / Segregation of Duties

The District concurs with the finding and will implement a comprehensive corrective action plan to strengthen internal controls over time-and-effort reporting and ensure full compliance with federal regulations and OSPI guidance, including OSPI Bulletin 039-24. Specifically, the District will: • Con...

The District concurs with the finding and will implement a comprehensive corrective action plan to strengthen internal controls over time-and-effort reporting and ensure full compliance with federal regulations and OSPI guidance, including OSPI Bulletin 039-24. Specifically, the District will: • Conduct a districtwide review of all federally funded positions to ensure appropriate time-and-effort documentation requirements are identified and applied. • Implement standardized procedures for time-and-effort documentation, including the use of semi-annual certifications, monthly personnel activity reports (PARs), or approved fixed schedule systems, as applicable. • Revise and formalize written procedures governing time-and-effort reporting to ensure clarity, consistency, and compliance. • Establish a secondary review process to verify completeness and accuracy of employee classifications and required documentation. • Provide training to applicable staff on time-and-effort requirements and documentation standards. • Implement ongoing monitoring and periodic internal reviews to ensure documentation is completed timely, properly approved, and retained in accordance with requirements. These actions are designed to ensure payroll costs charged to federal programs are fully supported, accurate, and compliant with applicable laws and regulations.

View Audit 402363

Finding 1215706 (2025-004)

Material Weakness 2025

Marysville School District No. 25

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Internal Control / Segregation of Duties

The District concurs with the finding and will implement a comprehensive corrective action plan to strengthen internal controls over time-and-effort reporting and ensure full compliance with federal regulations and OSPI guidance, including OSPI Bulletin 039-24. Specifically, the District will: • Con...

The District concurs with the finding and will implement a comprehensive corrective action plan to strengthen internal controls over time-and-effort reporting and ensure full compliance with federal regulations and OSPI guidance, including OSPI Bulletin 039-24. Specifically, the District will: • Conduct a districtwide review of all federally funded positions to ensure appropriate time-and-effort documentation requirements are identified and applied. • Implement standardized procedures for time-and-effort documentation, including the use of semi-annual certifications, monthly personnel activity reports (PARs), or approved fixed schedule systems, as applicable. • Revise and formalize written procedures governing time-and-effort reporting to ensure clarity, consistency, and compliance. • Establish a secondary review process to verify completeness and accuracy of employee classifications and required documentation. • Provide training to applicable staff on time-and-effort requirements and documentation standards. • Implement ongoing monitoring and periodic internal reviews to ensure documentation is completed timely, properly approved, and retained in accordance with requirements. These actions are designed to ensure payroll costs charged to federal programs are fully supported, accurate, and compliant with applicable laws and regulations.

View Audit 402363

Finding 1215701 (2025-002)

Material Weakness 2025

Marysville School District No. 25

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Internal Control / Segregation of Duties

The District concurs with the finding and will implement a comprehensive corrective action plan to strengthen internal controls over time-and-effort reporting and ensure full compliance with federal regulations and OSPI guidance, including OSPI Bulletin 039-24. Specifically, the District will: • Con...

The District concurs with the finding and will implement a comprehensive corrective action plan to strengthen internal controls over time-and-effort reporting and ensure full compliance with federal regulations and OSPI guidance, including OSPI Bulletin 039-24. Specifically, the District will: • Conduct a districtwide review of all federally funded positions to ensure appropriate time-and-effort documentation requirements are identified and applied. • Implement standardized procedures for time-and-effort documentation, including the use of semi-annual certifications, monthly personnel activity reports (PARs), or approved fixed schedule systems, as applicable. • Revise and formalize written procedures governing time-and-effort reporting to ensure clarity, consistency, and compliance. • Establish a secondary review process to verify completeness and accuracy of employee classifications and required documentation. • Provide training to applicable staff on time-and-effort requirements and documentation standards. • Implement ongoing monitoring and periodic internal reviews to ensure documentation is completed timely, properly approved, and retained in accordance with requirements. These actions are designed to ensure payroll costs charged to federal programs are fully supported, accurate, and compliant with applicable laws and regulations.

View Audit 402363

Finding 1215698 (2025-001)

Material Weakness 2025

Fife School District No.417

WA

School Nutrition Programs Subrecipient Monitoring Eligibility

The District reviewed the existing internal controls for compliance with federal eligibility requirements and have added additional management oversight of existing processes to improve completeness. In addition, the district will implement process improvements to increase transparency of record ret...

The District reviewed the existing internal controls for compliance with federal eligibility requirements and have added additional management oversight of existing processes to improve completeness. In addition, the district will implement process improvements to increase transparency of record retention.

View Audit 402354

Finding 1215695 (2025-002)

Material Weakness 2025

Home Share 092-Hd017

MN

HUD Housing Programs Internal Control / Segregation of Duties Material Weakness

Supportive Housing for Persons with Disabilities (Section 811) – Assistance Listing No. 14.181 Recommendation: We recommend that management establish and implement a formal internal control to ensure that someone who did not prepare the HAP Voucher reviews them for accuracy before submission. The pr...

Supportive Housing for Persons with Disabilities (Section 811) – Assistance Listing No. 14.181 Recommendation: We recommend that management establish and implement a formal internal control to ensure that someone who did not prepare the HAP Voucher reviews them for accuracy before submission. The preparation and review should be documented with a signature and date to ensure there is a proper audit trail. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We will strengthen our internal controls by implementing a formal, documented review process to ensure that all monthly HAP Vouchers receive an independent review prior to submission to HUD. Beginning with the next reporting cycle, our HUD Consultant will be responsible for preparing the monthly HAP Voucher and assembling all supporting documentation. Once prepared, the voucher package will be forwarded to the Contract Accountant for an independent review. The Contract Accountant will verify the accuracy and completeness of the voucher, including agreement to tenant ledgers, mathematical accuracy, proper application of subsidy rules, and consistency with prior month activity. This review will be documented through a dated signature on the voucher cover sheet, establishing a clear audit trail and ensuring appropriate segregation of duties between preparation and review. This control will be incorporated into the monthly close process and performed consistently going forward to ensure accurate, compliant, and fully supported HAP Voucher submissions. Name(s) of the contact person(s) responsible for corrective action: Jes Cuoco Planned completion date for corrective action plan: April 1, 2026

View Audit 402351

Finding 1215693 (2025-001)

Material Weakness 2025

Home Share 092-Hd017

MN

HUD Housing Programs Cash Management Material Weakness

Supportive Housing for Persons with Disabilities (Section 811) – Assistance Listing No. 14.181 Recommendation: We recommend that management establish and implement formal written policies and procedures to ensure surplus cash is either used to pay down debts subject to surplus cash or deposited in t...

Supportive Housing for Persons with Disabilities (Section 811) – Assistance Listing No. 14.181 Recommendation: We recommend that management establish and implement formal written policies and procedures to ensure surplus cash is either used to pay down debts subject to surplus cash or deposited in the residual receipts reserve in a timely manner in accordance with HUD requirements and the project’s Regulatory Agreement. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We have strengthened our internal controls by implementing a documented audit trail and a formal monthly reconciliation process for all intercompany activity between Home Share and Accord. Each month, the Contract Accountant prepares and submits to the Vice President of Finance a summary of the year to date activity along with the full outstanding intercompany balance, including prior year amounts. The Vice President of Finance reviews this reconciliation against the Home Share account balances to determine the amount that can be transferred to reduce the intercompany liability in accordance with HUD surplus cash requirements. Once the transfer is approved and completed, the Contract Accountant receives confirmation along with a copy of the ACH transaction to document the transaction. This process is performed and documented as part of each month end close to ensure timely, accurate, and compliant surplus cash transfers. Name(s) of the contact person(s) responsible for corrective action: Jes Cuoco Planned completion date for corrective action plan: May 31, 2025

View Audit 402351

Corrective Action Plans

Filters