Corrective Action Plans

Finding 1221723 (2025-001)

Material Weakness 2025

MN

Reporting Internal Control / Segregation of Duties § 200.502 § 200.510

MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS – ALL FEDERAL PROGRAMS 2025-001 Reporting Compliance Requirement Finding Summary 2 CFR § 200.510 requires that the City of South St. Paul, Minnesota (the City) prepare appropriate annual financial stat...

MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS – ALL FEDERAL PROGRAMS 2025-001 Reporting Compliance Requirement Finding Summary 2 CFR § 200.510 requires that the City of South St. Paul, Minnesota (the City) prepare appropriate annual financial statements, including the Schedule of Expenditures of Federal Awards (SEFA), which must include the total federal awards expended as determined in accordance with 2 CFR § 200.502. During our audit, we noted the City did not have sufficient controls in place to ensure the accurate preparation of the SEFA in compliance with this requirement. The City’s SEFA for fiscal 2025 was overstated by $749,656 in federal expenditures, due to the inclusion of costs that were incurred in the previous fiscal year. Corrective Action Plan Actions Planned – The City has implemented new processes and procedures in 2026 which address this internal control finding to comply with the Uniform Guidance in the future. Finance department personnel will work with federal grant coordinators to assure that federal expenditures are accurately reported on the SEFA for all federal programs. Official Responsible – Clara Hilger, Finance Director. Planned Completion Date – June 30, 2026. Disagreement With or Explanation of Finding – The City agrees with this finding. Plan to Monitor – The City’s Finance Director, Clara Hilger, will ensure the new process and procedures implemented in this area ensure future compliance with the Uniform Guidance.

View Audit 405982

Finding 1221720 (2025-002)

Material Weakness 2025

City of South St. Paul

MN

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

SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE – U.S. DEPARTMENT OF TRANSPORTATION – PASSED THROUGH MINNESOTA DEPARTMENT OF TRANSPORTATION – HIGHWAY PLANNING AND CONSTRUCTION FEDERAL ALN 20.205 2025-002 Internal Control Over Compliance With Federal Suspension and Debarment Requirements F...

SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE – U.S. DEPARTMENT OF TRANSPORTATION – PASSED THROUGH MINNESOTA DEPARTMENT OF TRANSPORTATION – HIGHWAY PLANNING AND CONSTRUCTION FEDERAL ALN 20.205 2025-002 Internal Control Over Compliance With Federal Suspension and Debarment Requirements Finding Summary 2 CFR § 180 and 2 CFR § 200.318-327 requires the City to establish and maintain effective internal control over compliance with requirements applicable to federal program expenditures, including suspension and debarment requirements applicable to the Highway Planning and Construction federal program. During our audit, we noted the City did not have sufficient controls in place within this program to ensure compliance with federal requirements related to assuring that the City was not contracting for goods or services with parties that are suspended or debarred, or whose principals are suspended or debarred from participating in contracts involving the expenditures of federal program funds. Corrective Action Plan Actions Planned – The City has implemented new processes and procedures in 2026 which address this internal control finding to ensure compliance with the Uniform Guidance in the future. The procedures will include steps to assure that City personnel are following the requirements of the Uniform Guidance related to suspension and debarment, including maintaining appropriate documentation. Official Responsible – Clara Hilger, Finance Director. Planned Completion Date – June 30, 2026. Disagreement With or Explanation of Finding – The City agrees with this finding. Plan to Monitor – The City’s Finance Director, Clara Hilger, will oversee the evaluation of this process, and the implementation of any procedural changes deemed necessary to ensure the City’s control procedures over suspension and debarment are performed and adequately documented in the future.

View Audit 405982

Finding 1221704 (2025-003)

Material Weakness 2025

KANSAS CITY BOARD OF PUBLIC UTILITIES

KS

Procurement, Suspension & Debarment § 200.214 § 200.303

Finding 2025-003 Congressionally Mandated Projects / Suspension and Debarment Anticipated Completion Date: June 30, 2026 Views of Responsible Officials and Corrective Action: Management accepts the recommendation. Management is in the process of developing a template checklist that will be completed...

Finding 2025-003 Congressionally Mandated Projects / Suspension and Debarment Anticipated Completion Date: June 30, 2026 Views of Responsible Officials and Corrective Action: Management accepts the recommendation. Management is in the process of developing a template checklist that will be completed as part of the RFP and contract process. Any project that meets additional standards requirements, the checklist will be required and will be maintained for the duration of the project with monthly review at the Executive level to ensure compliance is being met. Responsible Official: Andrew Ferris Chief Financial Officer Kansas City Board of Public Utilities

View Audit 405975

Finding 1221703 (2025-002)

Material Weakness 2025

KANSAS CITY BOARD OF PUBLIC UTILITIES

KS

Questioned Costs Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303

Finding 2025-002 Congressionally Mandated Projects / Davis-Bacon Act Anticipated Completion Date: June 30, 2026 Views of Responsible Officials and Corrective Action: Management accepts the recommendation. Management is in the process of developing a template checklist that will be completed as part ...

Finding 2025-002 Congressionally Mandated Projects / Davis-Bacon Act Anticipated Completion Date: June 30, 2026 Views of Responsible Officials and Corrective Action: Management accepts the recommendation. Management is in the process of developing a template checklist that will be completed as part of the RFP and contract process. Any project that meets additional standards requirements, the checklist will be required and will be maintained for the duration of the project with monthly review at the Executive level to ensure compliance is being met. Responsible Official: Andrew Ferris Chief Financial Officer Kansas City Board of Public Utilities

View Audit 405975

Finding 1221702 (2025-001)

Material Weakness 2025

KANSAS CITY BOARD OF PUBLIC UTILITIES

KS

Reporting Questioned Costs Matching / Level of Effort / Earmarking § 200.303

Finding 2025-001 Congressionally Mandated Projects / Reporting Anticipated Completion Date: June 30, 2026 Views of Responsible Officials and Corrective Action: Management accepts the recommendation. Management is in the process of developing a template checklist that will be completed as part of the...

Finding 2025-001 Congressionally Mandated Projects / Reporting Anticipated Completion Date: June 30, 2026 Views of Responsible Officials and Corrective Action: Management accepts the recommendation. Management is in the process of developing a template checklist that will be completed as part of the RFP and contract process. Any project that meets additional standards requirements, the checklist will be required and will be maintained for the duration of the project with monthly review at the Executive level to ensure compliance is being met. Responsible Official: Andrew Ferris Chief Financial Officer Kansas City Board of Public Utilities

View Audit 405975

Finding 1221699 (2025-001)

Material Weakness 2025

Sadd, Inc.

DC

Subrecipient Monitoring Allowable Costs / Cost Principles Significant Deficiency § 200.430

Views of Responsible Officials: Management appreciates the auditors' recommendations and recognizes the importance of consistently documenting supervisory review and approval of employee timesheets.The finding relates to the documentation and retention of supervisory approval for certain employee ti...

Views of Responsible Officials: Management appreciates the auditors' recommendations and recognizes the importance of consistently documenting supervisory review and approval of employee timesheets.The finding relates to the documentation and retention of supervisory approval for certain employee timesheets selected for testing. The Organization appreciates the opportunity to strengthen the documentation of an existing supervisory review process to ensure approvals are consistently evidenced and retained. To address the recommendation, the Organization has reinforced supervisory expectations, updated internal procedures related to timesheet approvals, and implemented periodic monitoring to verify that supervisory approvals are consistently documented and retained. Management believes these enhancements appropriately address the recommendation and further strengthen the Organization's existing internal control environment while reinforcing its commitment to sound internal controls and compliance with applicable grant requirements.

View Audit 405966

Finding 1221684 (2025-001)

Material Weakness 2025

Kimball County

NE

Internal Control / Segregation of Duties

Recommendation: The cost of additional personnel to properly segregate accounting and financial responsibilities would appear to outweigh the benefits received. However, the management and Board of Commissioner should constantly be aware of the possibility that errors or fraud could occur and contin...

Recommendation: The cost of additional personnel to properly segregate accounting and financial responsibilities would appear to outweigh the benefits received. However, the management and Board of Commissioner should constantly be aware of the possibility that errors or fraud could occur and continue current practices mitigating these possibilities and examine and implement other mitigating controls when appropriate. Action Taken: The County has assessed the benefits and costs associated with proper segregation of duties and has determined that costs would outweigh the benefits received. The County understands the inherent risks associated with improper segregation of accounting functions. Management has communicated the need for transactions to be well supported by documentation as well as seeking appropriate authorization when appropriate. The County requires reporting to the Board of Commissioner for all disbursements to ensure transactions are proper and potential errors and irregularities are identified on a timely basis. The County will continue to review accounting procedures and processes to further mitigate this internal control deficiency whenever possible and feasible.

View Audit 405964

Finding 1221683 (2025-001)

Material Weakness 2025

Healthwest

MI

Allowable Costs / Cost Principles § 200.430

Finding Number: 2025-001 Federal Programs: • ALN 93.696 – Certified Community Behavioral Health Clinic Expansion Grants (Grant No. H79SM087001-01) • ALN 93.788 – Opioid STR (Grant No. H79TI087831) Finding Title: Activities Allowed or Unallowed / Allowable Cost Principles Condition: During testing, i...

Finding Number: 2025-001 Federal Programs: • ALN 93.696 – Certified Community Behavioral Health Clinic Expansion Grants (Grant No. H79SM087001-01) • ALN 93.788 – Opioid STR (Grant No. H79TI087831) Finding Title: Activities Allowed or Unallowed / Allowable Cost Principles Condition: During testing, it was noted that payroll was allocated to the grants based on budget estimates because the payroll system used did not allow staff to document their hours across multiple programs in real-time. However, after-the-fact reviews of charges made to the Federal awards were not done to ensure that the final amount charged to the Federal award is accurate, allowable, and properly allocated. Planned Corrective Action: HealthWest will update payroll procedures to perform after-the-fact reviews of payroll allocations charged to federal grants. As part of these reviews, management will compare each employee's budgeted grant allocation percentages to the employee’s Salary Allocation Schedule (SAL) and actual time worked on grant activities, as supported by available program and operational records. Any differences identified will be analyzed and appropriate payroll allocation adjustments will be made during the year-end review process to ensure final amounts charged to federal awards are accurate, allowable, and properly allocated. Anticipated Completion Date: September 30, 2026 Responsible Official: Brandy Carlson, Chief Financial Officer

View Audit 405959

Finding 1221680 (2025-002)

Material Weakness 2025

City of North Kansas City

MO

Procurement, Suspension & Debarment Subrecipient Monitoring

Corrective Action Plan: Management acknowledges the deficiency. The City has historically performed suspension and debarment verification as part of its contract review process prior to contract execution; however, documentation evidencing completion of the verification was not retained in the contr...

Corrective Action Plan: Management acknowledges the deficiency. The City has historically performed suspension and debarment verification as part of its contract review process prior to contract execution; however, documentation evidencing completion of the verification was not retained in the contract file. To strengthen this control, the City has implemented procedures requiring documentation of suspension and debarment verification for all federally funded contracts and grant-related procurements. Staff will retain a dated screenshot or other evidence of the System for Award Management (SAM.gov) search in each applicable contract file prior to contract execution. Additionally, the City's Procurement Policy was updated and approved by the City Council in October 2025 to further strengthen procurement procedures and federal grant compliance requirements. Finance staff will periodically review contract files to verify that the required documentation has been retained. Personnel Responsible for Corrective Action: Nick Hawkins, Finance Manager Anticipated Completion Date: October 31, 2025

View Audit 405957

Finding 1221679 (2025-002)

Material Weakness 2025

Mid-East Regional Housing Authority

NC

HUD Housing Programs Reporting

We will implement proper internal control procedures for the Housing choice Voucher VMS reconciliation process.

View Audit 405955

Finding 1221678 (2025-001)

Material Weakness 2025

Mid-East Regional Housing Authority

NC

Eligibility HUD Housing Programs Reporting

We will implement proper internal control procedures for the Housing Choice Voucher program eligibility requirements

View Audit 405955

Finding 1221662 (2025-001)

Material Weakness 2025

Gardner Housing Authority

MA

HUD Housing Programs Questioned Costs Eligibility

Planned Implementation Date of Corrective Action: July 2026 Person Responsible for Corrective Action: Krishonna Murray, Executive Director I. 2025-001 Eligibility Rent Calculation Other Matter/Significant Deficiency The Authority had instances of missing income verification. Gardner Housing Authorit...

Planned Implementation Date of Corrective Action: July 2026 Person Responsible for Corrective Action: Krishonna Murray, Executive Director I. 2025-001 Eligibility Rent Calculation Other Matter/Significant Deficiency The Authority had instances of missing income verification. Gardner Housing Authority has established a system of internal control over the participant recertification process that meets HUD's requirements. Seven (7) to ten (10) files will be reviewed fiscally for quality assurance.

View Audit 405948

Finding 1221661 (2025-002)

Material Weakness 2025

Nebraska Urban Indian Health Coalition, Inc.

NE

Questioned Costs Cash Management § 200.305

Finding Number: 2025-002 Finding Title: Cash Collateralization (Repeat Finding 2024-004) Planned Corrective Action: Management acknowledges the finding regarding cash collateralization. As of September 30, 2025, the Coalition's cash deposits were pledged and collateralized. After year-end, managemen...

Finding Number: 2025-002 Finding Title: Cash Collateralization (Repeat Finding 2024-004) Planned Corrective Action: Management acknowledges the finding regarding cash collateralization. As of September 30, 2025, the Coalition's cash deposits were pledged and collateralized. After year-end, management became aware that two affiliated financial institutions participating in the deposit sweep program had inadvertently assigned the same certificate numbers during the nightly sweep process. Consequently, a portion of the Coalition's deposits may have been swept into the same financial institution, resulting in balances that may have temporarily exceeded applicable FDIC insurance limits. Although this condition resulted from the financial institutions' sweep process rather than the Coalition's cash management practices, management recognizes its responsibility to monitor deposit coverage and ensure compliance. To address this finding, the Coalition will implement the following corrective actions: 1. Meet with representatives from both participating banks to discuss the issue and formally notify them of the audit finding. 2. Request written confirmation that the nightly sweep process has been reviewed and modified to prevent deposits from being placed with the same institution through duplicate certificate assignments or other system errors. This may happen from time-to-time but IntraFi corrects those deposits and reallocates them, It will be reviewed weekly to make sure they did reallocate those funds. 3. Communication with certain representatives within the financial institution will be contacted by NUHIC and will need to request that dollars are required to be transferred to IntraFi to remain in compliance of your audit before 2:30pm everyday. 4. Obtain and review periodic reports from the financial institutions identifying the banks holding swept deposits and the amount of funds placed with each institution. 5. Establish a weekly review process to monitor cash balances, FDIC insurance coverage, and collateralization to identify any exceptions on a timely basis. 6. Maintain documentation of all reviews, bank communications, and corrective actions as part of the Coalition's internal control procedures. 7. If the financial institutions cannot provide adequate assurance that deposits will remain fully insured or properly collateralized, the Coalition will evaluate alternative cash management options, including other insured cash sweep providers or collateralized deposit arrangements. Management believes these corrective actions will strengthen oversight of the Coalition's cash management process and reduce the risk of future noncompliance with FDIC insurance requirements. Responsible Official: Carlett Gregory Anticipated Completion Date: December 31, 2026

View Audit 405946

Finding 1221659 (2025-001)

Material Weakness 2025

Wakemed

NC

Subrecipient Monitoring Reporting § 200.302 § 200.331 § 200.510

Finding Number: 2025-001 Condition: Management concurs with the finding and has implemented a new grant governance committee and process for identifying grant components before entering into grant agreements. Management also created a new grant department with staff devoted to researching, applying ...

Finding Number: 2025-001 Condition: Management concurs with the finding and has implemented a new grant governance committee and process for identifying grant components before entering into grant agreements. Management also created a new grant department with staff devoted to researching, applying for, monitoring, and reporting on all grants. The accounting function for grants will be done by this team as well but with continued oversight by the Executive Director, Accounting. Contact person responsible for corrective action: Stephanie Sessoms, Chief Financial Officer; Lynn Bailey, Executive Director, Accounting Anticipated Completion Date: 1/12/2026

View Audit 405945

Finding 1221658 (2025-002)

Material Weakness 2025

Housing Authority of the City of Poteet

TX

HUD Housing Programs Eligibility Special Tests & Provisions § 200.514

Finding No. 2025-002 Corrective Action: The Authority will implement the following corrective actions for the fiscal year ended September 30, 2025 (audit period October 1, 2024 through September 30, 2025): 1. Standardize rent reasonableness documentation. Implement a standardized rent reasonableness...

Finding No. 2025-002 Corrective Action: The Authority will implement the following corrective actions for the fiscal year ended September 30, 2025 (audit period October 1, 2024 through September 30, 2025): 1. Standardize rent reasonableness documentation. Implement a standardized rent reasonableness form (or system-generated report) required at initial lease-up, rent increases, and other required points, and retain it in the tenant file. 2. Pre-approval control for HAP initiation/changes. Require supervisory verification that rent reasonableness support and inspection/HQS documentation are present prior to (a) initial HAP execution, (b) annual recertification processing where applicable, and (c) approval of rent increases. 3. Inspection scheduling and follow-up procedures. Implement a scheduling log and follow-up protocol to ensure (a) initial inspections, (b) annual/biennial inspections (as applicable), and (c) re-inspections are performed and documented timely; rejected/failed inspections will be tracked until resolved. 4. Quality control reviews. Perform periodic internal quality control reviews (e.g., quarterly) of a sample of active tenant files to verify the presence of rent reasonableness and inspection documentation and to identify trends requiring corrective action. 5. Training and written procedures. Update written procedures and provide training to HCV staff and inspectors on documentation standards, retention requirements, and supervisory review expectations. 6. Corrective review of affected files. Review the tenant files identified during audit testing and any similar files from the audit period to obtain/prepare missing rent reasonableness support and ensure inspections were performed/documented; take corrective action for any issues identified. Implementation timeline: • Standard form/procedure updates: within [30] days of report issuance • Supervisory pre-approval control implemented: within 45 days of report issuance • Inspection log and follow-up protocol implemented: within 60 days of report issuance • Staff/inspector training completed: within 90 days of report issuance • First quarterly QC review completed: by September 30, 2026 • Corrective review of affected files completed: by September 30, 2026. Contact Information: Rosario Contero-Oropeza, Executive Director Housing Authority of the City of Poteet 120 Avenue E Poteet, TX 78065 (830)742-3589

View Audit 405939

Finding 1221657 (2025-001)

Material Weakness 2025

Housing Authority of the City of Poteet

TX

HUD Housing Programs § 200.514

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED SEPTEMBER 30, 2025 Finding No. 2025-001 Corrective Action: The Authority will implement the following corrective actions for the fiscal year ended September 30, 2025 (audit period October 1, 2024 through September 30, 2025): 1. PIC/HUD-50058 submission track...

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED SEPTEMBER 30, 2025 Finding No. 2025-001 Corrective Action: The Authority will implement the following corrective actions for the fiscal year ended September 30, 2025 (audit period October 1, 2024 through September 30, 2025): 1. PIC/HUD-50058 submission tracking and accountability. Implement a tracking log (system report or spreadsheet) for all tenant actions requiring PIC/HUD-50058 reporting, including tenant name/ID, action type, effective date, due date, submission date, and evidence of HUD acceptance. 2. Supervisory review prior to file closeout. Require a supervisor to review and initial/approve each tenant action package to confirm PIC/HUD-50058 submission evidence and HUD acceptance confirmation are present before the file is closed, payments are continued, or the action is considered complete. 3. Monthly exception reporting and resolution. Run a monthly PIC exception report (or equivalent system query) to identify missing, rejected, or pending submissions. Assign exceptions to staff for corrective action, document resolution, and retain evidence of follow-up. 4. Tenant file checklist update. Update the tenant file checklist to include PIC/HUD-50058 submission evidence and HUD acceptance confirmation as required elements for applicable actions. 5. Staff training and written procedures. Update written procedures and provide refresher training to staff responsible for reexaminations, interim changes, move-ins, move-outs, and other actions that trigger PIC/HUD-50058 reporting, including documentation retention standards. 6. Lookback/corrective review of the audit-period exceptions. Perform a lookback review of tenant actions processed during the audit period to determine whether additional PIC/HUD-50058 submissions were missed and submit/correct outstanding items, as applicable. Retain documentation of the corrective submissions and acceptance. Monitoring procedures: Management will monitor ongoing compliance by (a) reviewing the monthly exception report and documenting sign-off, (b) performing quarterly quality control reviews of a sample of completed tenant actions to verify PIC/HUD-50058 submission evidence and acceptance confirmation are present, and (c) tracking aging of open exceptions to ensure timely resolution. Statement of ongoing compliance: The Authority will ensure timely and complete PIC/HUD-50058 submissions going forward by requiring each tenant action to be logged and reconciled to PIC submission/acceptance status, enforcing supervisory sign-off prior to action closeout, and promptly resolving any rejected or pending items identified through monthly exception reporting. Implementation timeline: • Tracking log/checklist updates and procedure revisions: within 30 days of report issuance • Supervisory review control implemented: within 45 days of report issuance • Monthly exception reporting and management sign-off begins: within 60 days of report issuance • Staff training completed: within 90 days of report issuance • Lookback review completed: by September 30, 2026. • First quarterly QC review completed: by September 30, 2026

View Audit 405939

Finding 1221654 (2025-002)

Material Weakness 2025

Housing Authority of the City of New Haven D/b/a Elm City Communities

CT

HUD Housing Programs Internal Control / Segregation of Duties Questioned Costs

We agree that Elm City Communities should have a control environment that allows the books to be closed and regulatory reports filed on a timely basis. In August 2025 we completed a conversion from Elite to Yardi. This caused us to take longer than normal for our year end close process. Planned Impl...

We agree that Elm City Communities should have a control environment that allows the books to be closed and regulatory reports filed on a timely basis. In August 2025 we completed a conversion from Elite to Yardi. This caused us to take longer than normal for our year end close process. Planned Implementation Date of Corrective Action: Immediately Person Responsible for Corrective Action: Shenae Draughn, President.

View Audit 405932

Finding 1221653 (2025-003)

Material Weakness 2025

St. John's Lutheran Home of Albert Lea

MN

Procurement, Suspension & Debarment Reporting Matching / Level of Effort / Earmarking

Client has implemented staffing it is anticipated that the audit for 2025 and related forms will be issued within the allowable time period in the loan agreements.

View Audit 405926

Finding 1221652 (2025-002)

Material Weakness 2025

St. John's Lutheran Home of Albert Lea

MN

Finding Summary: The organization did not have adequate funds to maintain required escrows and debt covenants which resulted in the organization not meeting the continuing compliance requirements for program 10.766 Community Facilities Loans and Grants. Corrective Action Plan: The organization will ...

Finding Summary: The organization did not have adequate funds to maintain required escrows and debt covenants which resulted in the organization not meeting the continuing compliance requirements for program 10.766 Community Facilities Loans and Grants. Corrective Action Plan: The organization will cut costs, sell unproductive assets, and complete the filing for ERC from the federal government. If all goes to plan, escrows should be refilled and the organization should come into compliance with Community Facilities Loans and Grants. Anticipated Completion Date: Ongoing

View Audit 405926

Finding 1221651 (2025-001)

Material Weakness 2025

St. John's Lutheran Home of Albert Lea

MN

Material Weakness Reporting Internal Control / Segregation of Duties

St. John’s Lutheran Home of Albert Lea submits the following corrective action plan for the year ended September 30, 2025. Name and address of independent public accounting firm: Lethert, Skwira, Schultz & Co. LLP, 170 E 7th Place, Saint Paul, MN 55101 Audit period: October 1, 2024 – September 30, 2...

St. John’s Lutheran Home of Albert Lea submits the following corrective action plan for the year ended September 30, 2025. Name and address of independent public accounting firm: Lethert, Skwira, Schultz & Co. LLP, 170 E 7th Place, Saint Paul, MN 55101 Audit period: October 1, 2024 – September 30, 2025 The findings from the September 30, 2025 schedule of findings, questioned costs and recommendations. FINDINGS - FINANCIAL STATEMENT AUDIT Finding 2025-001 - Auditor Preparation of the Financial Statements Material Weakness Finding Summary: The Organization does not have an internal control system designed to provide for the preparation of the complete consolidated financial statements, including the accompanying footnotes, as required by GAAP. We were also requested to draft the financial statements and accompanying notes to the financial statements. Corrective Action Plan: It is not cost effective to have an internal control system designed to provide for the preparation of financial statements and accompanying notes. We requested that our auditors Lethert, Skwira, Schultz & Co. LLP, prepare the financial statements and the accompanying notes to the financial statements as a part of their annual audit. We have designated a member of management to review the drafted financial statements and accompanying notes. Responsible Individuals: Alice Marie, CFO 507-373-2040 Anticipated Completion Date: Ongoing

View Audit 405926

Finding 1221647 (2025-003)

Material Weakness 2025

Attention, Inc. Dba Tgthr

CO

Reporting § 200.303

Management will strengthen controls over federal reporting by establishing documented procedures for the preparation, review, certiﬁcation, and submission of all required federal reports. Responsibility for report preparation and certiﬁcation will be formally assigned, with designated backup personn...

Management will strengthen controls over federal reporting by establishing documented procedures for the preparation, review, certiﬁcation, and submission of all required federal reports. Responsibility for report preparation and certiﬁcation will be formally assigned, with designated backup personnel identiﬁed to ensure continuity during stafﬁng transitions. A reporting calendar and tracking system will be maintained to monitor ﬁling deadlines, and all reports will be subject to documented review and approval by an authorized individual prior to submission. Management will periodically review compliance with reporting requirements to ensure reports are submitted accurately and timely.

View Audit 405913

Finding 1221646 (2025-003)

Material Weakness 2025

California Foundation for Independent Living Centers

CA

Reporting Significant Deficiency § 200.510

III. Finding 2025-003 SEFA Reporting Statement of Concurrence: CFILC concurs with the finding. Corrective Action: CFILC has implemented additional review procedures for preparation of the Schedule of Expenditures of Federal Awards (SEFA). Prior to issuance, grant contract numbers, amendment numbers,...

III. Finding 2025-003 SEFA Reporting Statement of Concurrence: CFILC concurs with the finding. Corrective Action: CFILC has implemented additional review procedures for preparation of the Schedule of Expenditures of Federal Awards (SEFA). Prior to issuance, grant contract numbers, amendment numbers, award amounts, and expenditures reported on the SEFA will be reconciled to executed grant agreements, amendments, and supporting accounting records. Management review and approval of the completed SEFA will be documented prior to submission to the auditors. These procedures have been incorporated into CFILC's year-end financial reporting process to ensure the completeness and accuracy of federal award reporting. Contact Person: M. Lisa Hayes, Executive Director Projected Completion Date: September 30, 2026

View Audit 405911

Finding 1221645 (2025-002)

Material Weakness 2025

California Foundation for Independent Living Centers

CA

Allowable Costs / Cost Principles Reporting Significant Deficiency

II. Finding 2025-002 Lack of Documentation of Quarterly Reporting Statement of Concurrence: CFILC concurs with the finding. Corrective Action: CFILC has revised its reporting procedures to require that all quarterly reports required under the Assistive Technology Agreement be submitted in writing to...

II. Finding 2025-002 Lack of Documentation of Quarterly Reporting Statement of Concurrence: CFILC concurs with the finding. Corrective Action: CFILC has revised its reporting procedures to require that all quarterly reports required under the Assistive Technology Agreement be submitted in writing to the DOR Contract Administrator and retained electronically with evidence of timely submission. Documentation may include emailed reports, delivery confirmations, or other records demonstrating compliance with reporting deadlines. Management will maintain a centralized reporting file and review quarterly reporting requirements to ensure all required reports are submitted and retained in accordance with grant requirements. Although program activity associated with the Device Lending and Demonstration Centers and Reuse Centers is currently being procured through a competitive RFP process, CFILC will submit all required quarterly reports beginning with the next reporting cycle, including reports indicating limited or no activity when applicable. Contact Person: M. Lisa Hayes, Executive Director Projected Completion Date: July 30, 2026

View Audit 405911

Finding 1221644 (2025-001)

Material Weakness 2025

California Foundation for Independent Living Centers

CA

Procurement, Suspension & Debarment

I. Finding 2025-001 Procurement Documentation and Suspension/Debarment Verification Statement of Concurrence: CFILC concurs with the finding. Corrective Action: CFILC has strengthened its procurement procedures for purchases made under federally funded programs. Effective immediately, all procuremen...

I. Finding 2025-001 Procurement Documentation and Suspension/Debarment Verification Statement of Concurrence: CFILC concurs with the finding. Corrective Action: CFILC has strengthened its procurement procedures for purchases made under federally funded programs. Effective immediately, all procurements subject to competitive bidding requirements will include documentation of vendor evaluations, bid analyses, sole-source justifications when applicable, and verification of vendor eligibility through SAM.gov prior to award. Program and management staff responsible for procurement activities have been informed of the documentation requirements contained in the DOR Assistive Technology Agreement and federal procurement standards. A procurement checklist and centralized electronic procurement file will be maintained for all applicable purchases to ensure required documentation is retained and available for audit review. Because purchases utilizing year-end Assistive Technology funds generally occur during the fourth quarter of the contract period, compliance with the revised procedures will be demonstrated with the next applicable procurement cycle. Contact Person: M. Lisa Hayes, Executive Director Projected Completion Date: June 30, 2026 Ongoing monitoring thereafter

View Audit 405911

Finding 1221643 (2025-003)

Material Weakness 2025

Connecticut Veterans Legal Center, Inc.

CT

Questioned Costs Reporting Significant Deficiency

The Center is working with their third-party bookkeeper to ensure all federal funds are reported properly in their general ledger system in order to determine if a federal single audit is required.

View Audit 405906

Corrective Action Plans

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