Corrective Action Plans

Finding 1240950 (2025-009)

Material Weakness 2025

State of Illinois

IL

Matching / Level of Effort / Earmarking Subrecipient Monitoring § 200.303

Finding Number: 2025-009 Finding Name: Failure to Follow Established Control Procedures for Approving Certified Payrolls for the Airport Improvement Program Finding Condition(s): The Illinois Department of Transportation (IDOT) did not document approval of certified payrolls in accordance with its e...

Finding Number: 2025-009 Finding Name: Failure to Follow Established Control Procedures for Approving Certified Payrolls for the Airport Improvement Program Finding Condition(s): The Illinois Department of Transportation (IDOT) did not document approval of certified payrolls in accordance with its established internal control procedures for the Airport Improvement Program (AIP) program. Name of Contact Person(s): Clayton Stambaugh, Deputy Director of Aeronautics - Illinois Department of Transportation Corrective Action(s): Applicable staff will be reminded of requirements to review certified payroll reports and sign off on them prior to submission for reimbursement. Proposed Completion Date: October 1, 2026 - Complete

View Audit 415211

Finding 1240948 (2025-008)

Material Weakness 2025

State of Illinois

IL

Subrecipient Monitoring § 200.303 § 200.332 § 200.521

Finding Number: 2025-008 Finding Name: Inadequate Review of Subrecipient Single Audit Reports Finding Condition(s): The Illinois Department of Transportation (IDOT) did not adequately review single audit reports received from its subrecipients for the Highway Planning and Construction program on a t...

Finding Number: 2025-008 Finding Name: Inadequate Review of Subrecipient Single Audit Reports Finding Condition(s): The Illinois Department of Transportation (IDOT) did not adequately review single audit reports received from its subrecipients for the Highway Planning and Construction program on a timely basis. Additionally, IDOT has not established controls over subrecipient single audit desk reviews at an adequate level of precision to ensure single audit reporting requirements, including obtaining and reviewing single audit reporting packages, issuing management decision letters, and invoking stop payment actions, are performed within required timeframes. Name of Contact Person(s): Eric Bolinger, Chief Financial Officer - Illinois Department of Transportation Corrective Action(s): MDL Issuance For five subrecipients (with expenditures totaling $1,034,141), IDOT did not issue a management decision letter within required timeframes. The delays in issuing management decision letters ranged from one to 30 days beyond the required timeframe. IDOT acknowledges the finding regarding the untimely issuance of management decision letters to subrecipients. To address this issue, management will convene internal discussions with all relevant program and compliance staff to identify the root causes contributing to delays and to evaluate the current workflow for preparing and issuing management decision letters. As part of this process, IDOT will work collaboratively to develop a sustainable, standardized solution that ensures (1) responsibilities are clearly defined, (2) communication between divisions is improved, and (3) timelines comply with federal requirements. Interim monitoring procedures will be established to ensure any outstanding management decisions are tracked and issued promptly while the long term solution is being developed. Late Audit Package Submittal For four subrecipients (with expenditures of $1,348,055), the subrecipient single audit reporting package was not submitted by the subrecipients within the required timeframe. The delays in the submission of the subrecipient reporting packages for these subrecipients ranged from 19 to 81 days after the required timeframe, and IDOT did not follow-up with the subrecipient or invoke the stop pay process. IDOT staff are reviewing and planning to resume the stop pay notification process. Proposed Completion Date: December 31, 2026

View Audit 415211

Finding 1240946 (2025-007)

Material Weakness 2025

State of Illinois

IL

Procurement, Suspension & Debarment Subrecipient Monitoring Reporting § 200.303

Finding Number: 2025-007 Finding Name: Failure to Report Subaward Information Required by FFATA Finding Condition(s): The Illinois Department of Transportation (IDOT) failed to report information required by the Federal Funding Accountability and Transparency Act (FFATA) for awards granted to subrec...

Finding Number: 2025-007 Finding Name: Failure to Report Subaward Information Required by FFATA Finding Condition(s): The Illinois Department of Transportation (IDOT) failed to report information required by the Federal Funding Accountability and Transparency Act (FFATA) for awards granted to subrecipients of the Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and COVID-19 Airports Programs (AIP) program. Name of Contact Person(s): Joe Segobiano, Bureau Chief of Administrative Services – Illinois Department of Transportation, Division of Aeronautics Corrective Action(s): IDOT’s grant administrator and staff are now ensuring all grants are entered as soon as they are notified of the grant being executed. Proposed Completion Date: August 31, 2025 - Complete

View Audit 415211

Finding 1240944 (2025-006)

Material Weakness 2025

State of Illinois

IL

Reporting § 200.303 § 200.502 § 200.510

Finding Number: 2025-006 Finding Name: Inaccurate Reporting of Federal Expenditures Finding Condition(s): The Illinois Environmental Protection Agency (IEPA) did not accurately report Federal expenditures, including amounts passed-through to subrecipients, under the Clean Water State Revolving Fund ...

Finding Number: 2025-006 Finding Name: Inaccurate Reporting of Federal Expenditures Finding Condition(s): The Illinois Environmental Protection Agency (IEPA) did not accurately report Federal expenditures, including amounts passed-through to subrecipients, under the Clean Water State Revolving Fund (CWSRF) and Drinking Water State Revolving Fund (DWSRF) programs. Additionally, the auditors noted that the IEPA’s controls over reporting federal expenditures, including amounts passed-through to subrecipients, were not designed at a sufficient level of precision to ensure complete and accurate reporting in a timely manner. Name of Contact Person(s): Erin Hutchins, State Revolving Fund Finance Manager – Illinois Environmental Protection Agency, Fiscal Unit Corrective Action(s): The IEPA’s SRF Finance Manager will oversee increased review of the data used to compile federal expenditures, including subrecipient amounts, to ensure accrued expenditures and vouchers in transit are properly excluded from the IEPA’s cash-basis expenditure totals. Additionally, the IEPA will also ensure that the correct cash-basis expenditure totals are provided to the Governor’s Office of Management and Budget (GOMB) for reporting on the Statewide Schedule of Expenditure of Federal Awards (SEFA). Proposed Completion Date: September 4, 2026 - Complete

View Audit 415211

Finding 1240942 (2025-005)

Material Weakness 2025

State of Illinois

IL

Allowable Costs / Cost Principles Subrecipient Monitoring § 200.303

Finding Number: 2025-005 Finding Name: Untimely Review of Subrecipient Performance Reports Finding Condition(s): The Illinois State Board of Education (ISBE) did not review subrecipient performance reports in a timely manner according to its program monitoring policies and procedures for subrecipien...

Finding Number: 2025-005 Finding Name: Untimely Review of Subrecipient Performance Reports Finding Condition(s): The Illinois State Board of Education (ISBE) did not review subrecipient performance reports in a timely manner according to its program monitoring policies and procedures for subrecipients of the Education and Stabilization Fund - Elementary and Secondary Education (ESF) program for fiscal year 2025. Name of Contact Person(s): Denise Blaney, Director of Title Grants – Illinois State Board of Education Corrective Action(s): To ensure proper review procedures are performed in a timely manner in accordance with its program monitoring policies and procedures, ISBE’s fiscal department will continue to send weekly lists of submitted, past due, and disapproved Grant Periodic Reports (GPRS) to each applicable department. Program areas worked with Information Technology Department and enhanced the report to provide a daily detailed GPRS report beginning December 22, 2025. This report allows management staff to review and ensure that reports are not overlooked. Program staff analyzes the GPRS reports and prioritizes reviews based on submission dates. Proposed Completion Date: December 22, 2025 - Complete

View Audit 415211

Finding 1240937 (2025-004)

Material Weakness 2025

State of Illinois

IL

Cash Management Matching / Level of Effort / Earmarking § 200.303

Finding Number: 2025-004 Finding Name: Failure to Calculate Cash Requests in Accordance with the Treasury Regulations Finding Condition(s): The Illinois State Board of Education (ISBE) did not calculate cash requests for the Twenty-First Century Community Learning Centers (21st Century) and Student ...

Finding Number: 2025-004 Finding Name: Failure to Calculate Cash Requests in Accordance with the Treasury Regulations Finding Condition(s): The Illinois State Board of Education (ISBE) did not calculate cash requests for the Twenty-First Century Community Learning Centers (21st Century) and Student Support and Academic Enrichment (SSAE) programs in accordance with the requirements of 31 CFR part 205 (Treasury Regulations). Name of Contact Person(s): Regina Toland, Director of Fiscal Services – Illinois State Board of Education Corrective Action(s): ISBE's accounting system, MIDAS, automatically calculates the amounts to be requested from federal sources based on expenditures. The ISBE will request federal funds based on this calculation to be in compliance with the Cash Management Improvement Act and the Code of Federal Regulations. Proposed Completion Date: July 1, 2026 - Complete

View Audit 415211

Finding 1240933 (2025-003)

Material Weakness 2025

State of Illinois

IL

Subrecipient Monitoring Matching / Level of Effort / Earmarking § 200.303 § 200.332 § 200.521

Finding Number: 2025-003 Finding Name: Inadequate Monitoring of Subrecipient Single Audit Reviews Finding Condition(s): The State of Illinois did not establish adequate controls to monitor the completion and documentation of the review of single audit reports for its subrecipients of the Special Sup...

Finding Number: 2025-003 Finding Name: Inadequate Monitoring of Subrecipient Single Audit Reviews Finding Condition(s): The State of Illinois did not establish adequate controls to monitor the completion and documentation of the review of single audit reports for its subrecipients of the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), Child and Adult Care Food Program (CACFP), WIOA Cluster (WIOA Cluster), Highway and Planning Construction (Highway Planning), Title I Grants to Local Education Agencies (Title I), Special Education Cluster (Special Education Cluster), Twenty-First Century Community Learning Centers (21st Century), Supporting Effective Instruction State Grants (SEISG), Student Support and Academic Enrichment Program (SSAE), Education Stabilization Funds (ESF), Aging Cluster (Aging), Epidemiology and Laboratory Capacity for Infectious Diseases (ELC), Temporary Assistance for Needy Families (TANF), Child Support Services (CSS), Low-Income Home Energy Assistance Program (LIHEAP), Child Care and Development Fund Cluster (CCDF Cluster), Social Services Block Grant (SSBG), Block Grants for Prevention and Treatment of Substance Abuse (SAPT), Disaster Grants – Public Assistance (Public Assistance), and Homeland Security Grant Program (Homeland Security) programs in the State's Grant Accountability and Transparency Act (GATA) Audit Report Review Management System (ARRMS). Name of Contact Person(s): Keyria Rodgers, Grant Accountability and Transparency Unit Director – Illinois Governor’s Office of Management and Budget Corrective Action(s): The Grant Accountability and Transparency Unit (GATU) within the Illinois Governor’s Office of Management and Budget (GOMB) has developed both reactive (reduce the backlog) and proactive (eliminate future backlogs) approaches to address this finding. These approaches strengthen internal controls, establish consistent monitoring of Management Decision Letter (MDL) completion, and reduce the likelihood that agencies continue the pattern of missing MDL completion deadlines. Reducing the Backlog – Reactive Approach Due to the significant backlog, the reactive monitoring process was implemented first, in June 2025, to identify agencies with outstanding MDLs. Prior to June 2025, GATU did not have consistent visibility into outstanding MDLs requiring upload to the ARRMS system, nor did it regularly report this information to agencies. Beginning in June 2025, GATU implemented a MDL Analysis, a monthly monitoring of MDLs in ARRMS, to provide clearer visibility into overdue items and areas requiring corrective action. After each monthly review, GATU’s Fiscal and Audit Manager distributes the MDL Analysis to Chief Accountability Officers (CAOs) and Subject Matter Experts (SMEs) during the monthly CAO and SME calls hosted by GATU. In addition, the Fiscal and Audit Manager provides live demonstrations and one on one technical assistance upon request to support agencies in understanding and completing their MDL requirements. (Proposed Completion Date for Backlog: June 30, 2027) Eliminating Future Backlogs – Proactive Approach GATU’s reactive efforts have significantly reduced the backlog of MDL completions in ARRMS, enabling GATU to establish a clear, proactive approach that minimizes the likelihood of repeated missed deadlines. Beginning in December 2026, GATU’s Fiscal and Audit Manager will move to conducting MDL Analyses weekly. Using the MDL Analyses, the Fiscal and Audit Manager will notify agencies of upcoming deadlines 90 days prior to the date MDLs must be entered into ARRMS. A second reminder will be sent 30 days prior to the deadline. If the Fiscal and Audit Manager does not observe meaningful progress toward MDL completion following these notifications, the matter will be escalated to the GATU Director for a touchpoint meeting with the agency’s CAO. If the agency remains delinquent after the reminders and GATU Director level intervention, the GATU Director will escalate the matter to the Senior Deputy Director of Accountability and Compliance for further action within 15 days of the agency’s review becoming overdue. This escalation will be sent via email and will document the agency’s status, prior reminders, and the need for corrective action. (Proposed Completion Date for Implementing Proactive Approach: December 31, 2026) Proposed Completion Date: June 30, 2027

View Audit 415211

Finding 1240892 (2025-001)

Material Weakness 2025

Town of Salem

CT

Procurement, Suspension & Debarment Subrecipient Monitoring

FEDERAL FINDING 2025-001 – SIGNIFICANT DEFICIENCY- PROCUREMENT AND SUSPENSION AND DEBARMENT- INTERNAL CONTROL OVER VERIFICATION AGAINST THE SYSTEM FOR AWARD MANAGEMENT (“SAM”) Description of Finding: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Fede...

FEDERAL FINDING 2025-001 – SIGNIFICANT DEFICIENCY- PROCUREMENT AND SUSPENSION AND DEBARMENT- INTERNAL CONTROL OVER VERIFICATION AGAINST THE SYSTEM FOR AWARD MANAGEMENT (“SAM”) Description of Finding: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, (Uniform Guidance) requires compliance with provisions of procurement, suspension, and debarment. Non-federal entities are required to ensure that they do not award contracts or make subawards to any parties that are suspended or debarred from receiving federal funds. This verification may be accomplished by checking the System for Award Management (SAM). The Town does not have a process in place to check that vendors are not suspended or debarred by checking the System for Award Management (SAM). Statement of Concurrence or Nonconcurrence: The Town agrees with the audit finding. Corrective Action: The Town will establish policies and procedures to ensure vendors are not suspended or debarred by checking the System for Award Management (SAM) and maintain documentation showing that verification. Name of Contact Person: Meliza Jimnez, Finance Director, (860) 859-3873 x220. Projected Completion Date: June 30, 2026.

View Audit 415201

Finding 1240888 (2025-006)

Material Weakness 2025

Libson Regional School District

NH

Procurement, Suspension & Debarment Subrecipient Monitoring Allowable Costs / Cost Principles

The Business Manager will work to create policies and procedures to address all the items listed in this finding. The Principal and Superintendent will assist in enforcing the procedures are followed. All staff involved with the administration of Federal funds will be trained on these policies and p...

The Business Manager will work to create policies and procedures to address all the items listed in this finding. The Principal and Superintendent will assist in enforcing the procedures are followed. All staff involved with the administration of Federal funds will be trained on these policies and procedures. The Business Manager will work to make sure the policies and procedures stay consistent with current Uniform Guidance requirements and the School Districts federal grant activities. Our auditors assist the business manager to assure we are in step with the changes.

View Audit 415191

Finding 1240861 (2025-001)

Material Weakness 2025

West Liberty Care Center, INC

OH

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

U.S. Department of Housing and Urban Development West Liberty Care Center, Inc. respectfully submits the following corrective action plan for the year ended December 31, 2025. Audit period: January 1, 2025, through December 31, 2025 The findings from the schedule of findings and questioned costs are...

U.S. Department of Housing and Urban Development West Liberty Care Center, Inc. respectfully submits the following corrective action plan for the year ended December 31, 2025. Audit period: January 1, 2025, through December 31, 2025 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS SIGNIFICANT DEFICIENCY U.S. Department of Housing and Urban Development 2025-001 Section 232 HUD Insured Mortgage Note Payable - Assistance Listing No. 14.129 Criteria or specific requirement: The Community was required to obtain written approval from HUD prior to surrendering 13 licensed beds to the State of Ohio that were collateral for the HUD-insured mortgage. Condition: The Community did not obtain HUD’s approval prior to requesting and obtaining approval from the Ohio Department of Health (ODH) to reduce the licensed beds from 87 to 74 for the nursing facility during April 2023. Recommendation: The Community should adhere to the Regulatory Agreement and obtain HUD’s approval prior to taking any action specifically precluded in the Regulatory Agreement. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Community is working with HUD to obtain the necessary approval. Amber Swords is responsible for corrective action Planned completion date for corrective action plan: December 31, 2026

View Audit 415180

Finding 1240859 (2025-001)

Material Weakness 2025

City of Springfield

MA

Allowable Costs / Cost Principles Subrecipient Monitoring Significant Deficiency § 200.303 § 200.430

Audit Finding Reference: 2025-001 Maintain Documentation Supporting Employee Pay Rates Planned Corrective Action: We will maintain a current Memorandum of Understanding supporting the hourly pay rate charge to the program for employee pay rates. Planned Implementation Date of Corrective Action: Nove...

Audit Finding Reference: 2025-001 Maintain Documentation Supporting Employee Pay Rates Planned Corrective Action: We will maintain a current Memorandum of Understanding supporting the hourly pay rate charge to the program for employee pay rates. Planned Implementation Date of Corrective Action: November 2026 Person Responsible for Corrective Action: Valerie L. Williams

View Audit 415178

Finding 1240804 (2025-018)

Material Weakness 2025

City of Belgrade

MT

Subrecipient Monitoring Reporting § 200.512

FINDING 2025-018: Audit Report Filing Deadline Response: The changes identified throughout the previous findings will support completion of the Single Audit in a timely manner. The SEFA and all related documentation will be included on the year-end checklist. In addition to the other changes, the Gr...

FINDING 2025-018: Audit Report Filing Deadline Response: The changes identified throughout the previous findings will support completion of the Single Audit in a timely manner. The SEFA and all related documentation will be included on the year-end checklist. In addition to the other changes, the Grant & Federal Funding Policy will include quarterly review of federal funding sources and grant status.

View Audit 415127

Finding 1240803 (2025-017)

Material Weakness 2025

City of Belgrade

MT

Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management

FINDING 2025-017: Controls Over SRF Reimbursement Requests Response: The City again agrees with the auditor’s recommendation and will include reporting and reimbursement rules and guidelines in the new Grant & Federal Funding policy currently being developed by the Finance Department. We have also c...

FINDING 2025-017: Controls Over SRF Reimbursement Requests Response: The City again agrees with the auditor’s recommendation and will include reporting and reimbursement rules and guidelines in the new Grant & Federal Funding policy currently being developed by the Finance Department. We have also created a central location for all grant documentation to be stored in order to keep all documentation available to everyone involved in grant-related transactions. The new process/policy will also include additional review requirements.

View Audit 415127

Finding 1240802 (2025-003)

Material Weakness 2025

Stebbins Community Association

AK

Material Weakness Reporting Internal Control / Segregation of Duties § 200.512

Finding 2025-003 Late Reporting and Noncompliance with Reporting Requirements Material Weakness Name of Contact Person: Nora Tom, President; Tribal Coordinator, Jacinta Martin Corrective Action Plan: The Stebbins Community Association will establish and implement a formal reporting compliance proces...

Finding 2025-003 Late Reporting and Noncompliance with Reporting Requirements Material Weakness Name of Contact Person: Nora Tom, President; Tribal Coordinator, Jacinta Martin Corrective Action Plan: The Stebbins Community Association will establish and implement a formal reporting compliance process to ensure that all required financial, programmatic, grant, and other regulatory reports are accurately prepared, reviewed, approved, and submitted by the applicable deadlines. Management will implement the following procedures: 1. Centralized Reporting Calendar The Association will establish a centralized reporting calendar identifying all required reports, including: • Report name and funding source; • Reporting period; • Due date; • Responsible employee; • Required management review; • Submission method; and • Date submitted. The calendar will be maintained and updated throughout the year. 2. Designated Responsibility A specific employee will be assigned responsibility for monitoring each reporting requirement. The assigned employee will be responsible for preparing the report and ensuring that it is submitted by the applicable deadline. 3. Management Review and Approval All significant financial and program reports will be reviewed by the Executive Director or designated management personnel before submission. The review will verify the accuracy and completeness of the information and compliance with applicable reporting requirements. 4. Advance Deadlines Internal deadlines will be established before the actual funding agency or regulatory deadline. Reports should generally be completed and submitted for management review sufficiently in advance to allow time for corrections or unforeseen delays. 5. Supporting Documentation Documentation supporting submitted reports will be maintained in an organized manner, including financial records, invoices, payroll records, program records, grant documentation, correspondence, and copies of submitted reports and submission confirmations. 6. Monitoring of Grant and Reporting Requirements Management will periodically review grant agreements, award documents, funding notices, and applicable regulations to identify reporting requirements and changes to reporting deadlines or submission procedures. 7. Late or Missed Reports If a report cannot be submitted by the required deadline, the responsible employee will immediately notify management. Management will contact the applicable funding agency, when appropriate, to request an extension or provide an explanation and establish a plan for bringing the reporting requirement current. 8. Follow-Up on Outstanding Reports Management will maintain a list of outstanding or pending reports and monitor them until completed and accepted by the applicable funding agency. 9. Staff Training Employees responsible for grant administration, accounting, financial reporting, and program reporting will receive training regarding reporting deadlines, applicable grant requirements, documentation standards, and submission procedures. 10. Ongoing Management Oversight The Executive Director will periodically review the reporting calendar and outstanding reports to ensure that reporting responsibilities are being completed timely and that identified deficiencies are corrected. Proposed Completion Date: The corrective action will be implemented immediately. The centralized reporting calendar and assignment of reporting responsibilities will be established for the current fiscal year.

View Audit 415173

Finding 1240801 (2025-002)

Material Weakness 2025

Stebbins Community Association

AK

Allowable Costs / Cost Principles § 200.430

Finding 2025-002 Lack of Internal Control Over Activities Allowed or Unallowed and Allowable Costs/Cost Principles Material Weakness Name of Contact Person: President, Nora Tom; Tribal Coordinator, Jacinta Martin Corrective Action Plan: The Stebbins Community Association will strengthen its internal...

Finding 2025-002 Lack of Internal Control Over Activities Allowed or Unallowed and Allowable Costs/Cost Principles Material Weakness Name of Contact Person: President, Nora Tom; Tribal Coordinator, Jacinta Martin Corrective Action Plan: The Stebbins Community Association will strengthen its internal controls over program expenditures by establishing and implementing written procedures to ensure that all costs charged to federally funded and other restricted programs are properly reviewed, supported, approved, and allowable. Management will implement the following corrective actions: 1. Written Policies and Procedures The Association will establish written procedures for reviewing expenditures to determine whether costs are allowable under applicable federal requirements, grant agreements, funding restrictions, and Association policies. 2. Pre-Approval of Expenditures Program expenditures will be reviewed and approved by authorized personnel before payment whenever practical. The reviewer will verify that the expenditure is related to an approved program activity and is necessary to accomplish the program's objectives. 3. Allowability and Cost Principles Review Before costs are charged to a federal award, designated accounting or management personnel will review the expenditure for: • Reasonableness; • Allowability; • Allocability to the applicable program or award; • Proper accounting treatment; • Consistency with applicable cost principles; • Compliance with grant or award restrictions; and • Adequate supporting documentation. 4. Supporting Documentation All expenditures will be supported by appropriate documentation, including invoices, receipts, purchase orders, contracts, timesheets, travel documentation, approval records, or other documentation demonstrating the purpose and allowability of the expenditure. 5. Program/Grant Coding Accounting personnel will ensure that expenditures are charged to the correct program, grant, funding source, and account code. Costs will not be charged to a federal award merely because funds are available. 6. Review of Unallowable Costs Management will establish procedures for identifying costs that are specifically prohibited or otherwise unallowable under applicable laws, regulations, grant agreements, or cost principles. Unallowable costs will not be charged to federal awards and, if identified after recording, will be promptly reclassified or otherwise corrected. 7. Periodic Expenditure Review Management will conduct periodic reviews of expenditures charged to federal and restricted programs. The review will include testing supporting documentation and determining whether expenditures were incurred for authorized program purposes. 8. Correcting Improper Charges If an expenditure is determined to be unallowable or improperly charged to a program, the Association will make the necessary accounting correction and, when applicable, reimburse or return funds to the appropriate funding source. 9. Employee and Management Training Employees and management personnel responsible for purchasing, accounts payable, grant administration, and financial reporting will receive training regarding allowable and unallowable costs, applicable cost principles, grant requirements, documentation requirements, and expenditure approval procedures. 10. Management Oversight The Executive Director and designated financial personnel will be responsible for monitoring compliance with these procedures and ensuring that appropriate corrective action is taken when deficiencies are identified. Proposed Completion Date: The corrective action will be implemented immediately and incorporated into the Association's ongoing purchasing, accounts payable, grant administration, and financial reporting procedures.

View Audit 415173

Finding 1240800 (2025-003)

Material Weakness 2025

Town of Cohasset

MA

Procurement, Suspension & Debarment Subrecipient Monitoring Significant Deficiency § 200.322

Audit Finding Reference: 2025-003 Missing Procurement Contract Provisions Planned Corrective Action: The Town will work with its legal counsel and relevant departments to ensure that future contracts include all applicable procurement provisions and required language. The Town will incorporate this ...

Audit Finding Reference: 2025-003 Missing Procurement Contract Provisions Planned Corrective Action: The Town will work with its legal counsel and relevant departments to ensure that future contracts include all applicable procurement provisions and required language. The Town will incorporate this review into its contracting process going forward. Planned Implementation Date of Corrective Action: Fiscal Year 2027 Person Responsible for Corrective Action: Michelle Leary, Procurement Officer

View Audit 415167

Finding 1240795 (2025-002)

Material Weakness 2025

Town of Cohasset

MA

Subrecipient Monitoring Internal Control / Segregation of Duties Procurement, Suspension & Debarment § 200.303

Audit Finding Reference: 2025-002 Improve Internal Controls Over Reporting and Period of Performance Planned Corrective Action: The Town has reviewed the processes and internal controls related to reporting and the period of performance. Going forward, the Town will ensure that appropriate procedure...

Audit Finding Reference: 2025-002 Improve Internal Controls Over Reporting and Period of Performance Planned Corrective Action: The Town has reviewed the processes and internal controls related to reporting and the period of performance. Going forward, the Town will ensure that appropriate procedures are followed to support accurate and timely reporting and compliance with applicable period-of-performance requirements. Management will continue to monitor these processes to ensure that internal controls remain effective. Planned Implementation Date of Corrective Action: Fiscal Year 2027 and ongoing. Person Responsible for Corrective Action: Michelle Leary and Bethiny Moseley

View Audit 415167

Finding 1240790 (2025-001)

Material Weakness 2025

Town of Cohasset

MA

Subrecipient Monitoring Procurement, Suspension & Debarment Allowable Costs / Cost Principles

Audit Finding Reference: 2025-001 Document Policies and Procedures Over Federal Awards Planned Corrective Action: The Town has received a draft policy addressing requirements related to Federal Awards. The Town will review the policy and work toward presenting it to the Board for consideration and a...

Audit Finding Reference: 2025-001 Document Policies and Procedures Over Federal Awards Planned Corrective Action: The Town has received a draft policy addressing requirements related to Federal Awards. The Town will review the policy and work toward presenting it to the Board for consideration and adoption during FY27. Planned Implementation Date of Corrective Action: Within Fiscal Year 2027. Person Responsible for Corrective Action: Michelle Leary and Bethiny Moseley

View Audit 415167

Finding 1240767 (2025-002)

Material Weakness 2025

Adults and Youth United Development Association. INC

TX

Reporting § 200.512

Background: The delivery of the single audit was delayed due to staffing capacity constraints, competing administrative priorities, and the need for improved coordination in gathering audit documentation. AYUDA is committed to improving the audit preparation process to ensure the single audit is com...

Background: The delivery of the single audit was delayed due to staffing capacity constraints, competing administrative priorities, and the need for improved coordination in gathering audit documentation. AYUDA is committed to improving the audit preparation process to ensure the single audit is completed and submitted within the required timeframe. Corrective Actions: 5. Audit Planning Timeline • Action: Begin annual audit preparation earlier in the fiscal cycle, including the development of a detailed audit timeline and internal milestone deadlines. • Responsibility: Executive Management and Finance Department. • Timeline: To be implemented for the next audit cycle and maintained annually. 6. Document Preparation and Tracking • Action: Maintain a centralized audit request list and tracking system to ensure supporting documents are compiled timely and submitted to auditors as requested. • Responsibility: Finance and Administrative Staff. • Timeline: Effective immediately and ongoing. 7. Staff Training and Cross-Coordination • Action: Provide additional training and internal coordination to staff involved in grant compliance, audit support, and financial reporting responsibilities. • Responsibility: Administration and Finance Department. • Timeline: Training and coordination efforts to begin within 60 days. 8. Regular Communication with Auditors • Action: Schedule periodic status meetings with the auditors during the audit process to address open items promptly and monitor progress toward completion. • Responsibility: Finance Department. • Timeline: During each audit engagement, beginning with the next audit cycle. Conclusion AYUDA is committed to addressing these findings with urgency and transparency. Through the implementation of the corrective actions outlined above, management expects to strengthen financial oversight, improve compliance processes, and ensure timely completion of future audit requirements.

View Audit 415166

Finding 1240766 (2025-001)

Material Weakness 2025

Thompson House Inc.

MA

Procurement, Suspension & Debarment HUD Housing Programs

Responsible Official Ronald Bridge, Director of Finance Plan Detail Management will establish and implement procedures to ensure that all required deposits to the Replacement Reserve account are made in the amount and within the timeframes required by the applicable HUD regulatory agreement and othe...

Responsible Official Ronald Bridge, Director of Finance Plan Detail Management will establish and implement procedures to ensure that all required deposits to the Replacement Reserve account are made in the amount and within the timeframes required by the applicable HUD regulatory agreement and other governing documents. Management will also implement procedures requiring appropriate HUD approval and supporting documentation be obtained and maintained prior to making any withdrawal from the Replacement Reserve account, whenever such approval is required. Management will periodically review the Replacement Reserve activity and reconcile the account to ensure that required deposits have been made timely, withdrawals are property authorized and supported, and documentation is retained in the property’s records to demonstrate compliance with HUD requirements. These procedures will be incorporated into the property’s financial controls to help ensure ongoing compliance with HUD requirements. Anticipated Completion Date: October 2026.

View Audit 415163

Finding 1240764 (2025-004)

Material Weakness 2025

Kennebec Valley Council of Governments

ME

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties § 200.512

KVCOG did not have effective internal controls to help ensure timely and accurate preparation of financial information, including account reconciliations. As a result, management did not have the information necessary to complete the FAC filing within the timeframe required by 2 CFR §200.512(a)(1). ...

KVCOG did not have effective internal controls to help ensure timely and accurate preparation of financial information, including account reconciliations. As a result, management did not have the information necessary to complete the FAC filing within the timeframe required by 2 CFR §200.512(a)(1). The late submission of the Single Audit report to the FAC creates noncompliance with federal reporting requirements and increases KVCOG’s risk of administrative actions by federal awarding agencies. This may result in delayed acceptance of federal awards, imposition of grant conditions, or restrictions on access to federal funds until the report is submitted and accepted. Corrective Action: It is impossible to submit an annual audited report within 90 days of year-end. This would mean the audit with have to be completed and approved by 9/30/26. The best we can do in this case is be as efficient as possible in closing our reports and reconciling information to be prepared for auditors as soon as possible after year-end. For example, for fiscal year ending 6/30/26, we are not planning audit work until early to mid-November which is already past the deadline, with final reports probably not until the end of 2026 at the earliest. We can only do our best to be efficient. The only other option is to submit a preliminary internal unaudited reports noted as such. Regarding the data collection form and reporting package for FY24-25, we did not meet this deadline due to transition in financial staffing and the delay in being able to engage an audit firm. For FY25-26, we should be able to meet this deadline based on currently scheduled audit work (November) and this should be consistent for subsequent years. Responsible Party: Name: Diana Rafuse Title: Finance Director Phone: 207-453-4258 Anticipated Completion Date: 12/31/2026

View Audit 415161

Finding 1240759 (2025-001)

Material Weakness 2025

Housing Opportunities, Inc.

NC

Reporting Matching / Level of Effort / Earmarking

HOUSING OPPORTUNITIES, INC. P.O. Box 10248 Greensboro, North Carolina 27404 CORRECTIVE ACTION PLAN Single Audit Clearinghouse 1201 East 10th Street Jeffersonville, Indiana 47132 Housing Opportunities, Inc. (the "Organization"), respectfully submits the following Corrective Action Plan for the year e...

HOUSING OPPORTUNITIES, INC. P.O. Box 10248 Greensboro, North Carolina 27404 CORRECTIVE ACTION PLAN Single Audit Clearinghouse 1201 East 10th Street Jeffersonville, Indiana 47132 Housing Opportunities, Inc. (the "Organization"), respectfully submits the following Corrective Action Plan for the year ended December 31, 2025. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Greensboro, North Carolina 27410 Audit period: Year ended December 31, 2025 The finding from the December 31, 2025 Schedule of Findings and Questioned Costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. Findings and Questioned Costs: Finding 2025-001: Section III - Findings and questioned costs relating to the major programs which are required to be reported as defined by the Uniform Guidance [2 CFR 200.516(a)] Recommendation: The Organization should continuously monitor cash balances to ensure that funds are always covered by FDIC insurance limits, collateral agreements are obtained, or funds are invested in government securities. Management's Response: Management reviews the financial stability of the banking institutions that hold the Organizations' funds on an ongoing basis and will continue to do so. Management does not feel at this time that the funds are truly at risk based on current market conditions and the reviews they continually do on the financial stability of the banking institutions holding these funds. Management will transfer the funds at any point they believe the funds are truly at risk. If you have questions regarding this plan, please call Eliza Haynes at 336-544-2300. Sincerely yours, Eliza Haynes Partnership Property Management

View Audit 415160

Finding 1240758 (2025-001)

Material Weakness 2025

Sociedad Para Asistencia Legal De Puerto Rico, Inc.

PR

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties § 200.303

Sociedad para Asistencia Legal de Puerto Rico, Inc. Corrective Action Plan Single Audit 2025 For the Year Ended June 30, 2025 Section I: General Information Auditee: Sociedad para Asistencia Legal de Puerto Rico, Inc. (the Organization) Audit Period: July 1, 2024 – June 30, 2025 Auditor: Galíndez LL...

Sociedad para Asistencia Legal de Puerto Rico, Inc. Corrective Action Plan Single Audit 2025 For the Year Ended June 30, 2025 Section I: General Information Auditee: Sociedad para Asistencia Legal de Puerto Rico, Inc. (the Organization) Audit Period: July 1, 2024 – June 30, 2025 Auditor: Galíndez LLC Date: January 22, 2026 Section II: Financial Statement Findings No findings were reported under Government Auditing Standards. Section III: Federal Award Findings and Questioned Costs Finding No. 2025-001: Bi-weekly Reporting Compliance • Federal Program: Coronavirus State and Local Fiscal Recovery Funds (CSFRF) • ALN: 21.027 • Compliance Requirement: Reporting Condition Identified by Auditor: During the reporting test, auditors detected that reports were submitted after the corresponding bi-weekly period. Additionally, expenditures in the reports contained errors related to amounts for employee retentions for payroll taxes, which were included in the reports but were not expenditures incurred by the Organization at that specific moment. Management's Views and Justification: The Organization acknowledges that three (3) out of twelve (12) bi-weekly reports for ALN 21.027 were submitted late. This delay was due to an unintentional error involving a mismatch of dates, as explained in an email to the grantor on the same day as the submission. The grantor acknowledged receipt of the report. Furthermore, the Organization maintains continuous communication with the grantor to validate eligible expenses. The grantor has not verbalized any major discrepancies related to late submissions in the monthly stakeholder meetings. While the Organization recognizes the late submission, it asserts that the delay was minor and promptly addressed. 2 Management's Views and Justification (continues): Management highlights that the Organization also administered major federal programs under FEMA Public Assistance (ALN 97.036) and Hazard Mitigation (ALN 97.039) passed through COR3. These programs were audited and received an unmodified opinion with no findings reported, as confirmed by the COR3 Management Decision Letter dated August 26, 2025 (Determination: "No Action Required"). Corrective Actions Taken or Planned To address the findings and prevent recurrence, Sociedad para Asistencia Legal de Puerto Rico, Inc. is implementing the following measures: 1. Improving Accuracy of Expenditures • Reconciliation Protocol: We will implement a strict protocol where the Finance Director reconciles General Ledger (GL) with bi-weekly reports to ensure that only eligible, incurred expenditures are reported. • Validation: Specific procedures will be added to prevent the inclusion of non-expenditure items (such as employee payroll tax retentions) in the reports. • Automated Checks: We will implement automated checks or validation rules in the reporting process to detect and prevent data entry errors. • Pre-Submission Audit: A compliance officer will conduct pre-submission audits to review expenditures against federal guidelines, ensuring compliance with OMB Circular A-133 and 2 CFR 200. 2. Timely Submission of Reports • Reminder System: A system of calendar reminders has been implemented for all report deadlines. • Accountability: Clear consequences have been established for failing to submit reports on time. • Timeline Assessment: We are evaluating the current reporting timeline to assess if adjustments are needed to allow for adequate review time prior to submission. 3. Communication with Grantor • Proactive Updates: We will proactively communicate with the grantor regarding these corrective actions. • Implementation Timeline: We will provide the grantor with a specific timeline for the full implementation of these protocols. Implementation Details: • Anticipated Completion Date: December 31, 2025 • Responsible Official: Héctor A. Díaz Pomales, Director de Finanzas Sociedad para Asistencia Legal de Puerto Rico, Inc.

View Audit 415158

Finding 1240757 (2025-003)

Material Weakness 2025

City of Warwick, Rhode Island

RI

Internal Control / Segregation of Duties Subrecipient Monitoring Allowable Costs / Cost Principles § 200.430

Warwick Public Schools has implemented several procedures to strengthen grant management, improve the accuracy and timeliness of required reporting, and ensure appropriate coordination between the Grants and Business Offices. 1. Grants Management Calendar: A shared Grants Management Calendar has bee...

Warwick Public Schools has implemented several procedures to strengthen grant management, improve the accuracy and timeliness of required reporting, and ensure appropriate coordination between the Grants and Business Offices. 1. Grants Management Calendar: A shared Grants Management Calendar has been created and is actively used by the Grants and Business Offices to monitor reporting deadlines and ensure required reports are completed and submitted on time. The calendar identifies the individual responsible for each reporting requirement and is managed by the Director of Federal Programs & Grants, Paul Heatherton. 2. Grant Tracker: A centralized Grant Tracker has been implemented to document key grant information, including the Grant Award Notification (GAN), approved budget, grant-funded positions, and grant end dates. This tracker is shared with the Grants and Business Offices and, when applicable, Human Resources. It supports coordination across departments, particularly for positions funded through grants with defined end dates, such as the Coronavirus State and Local Fiscal Recovery Funds. This process helps the district identify upcoming grant expirations and plan for the continuation or transition of funding for grant-funded positions. 3. Annual Grant Position and Funding Notifications: The Grants Office has established an annual process for providing Human Resources with a transaction notice identifying grant-funded positions and their associated grant fund numbers. This procedure strengthens communication regarding grant-funded staffing and helps ensure that positions are accurately associated with the appropriate funding sources. 4. Federal Grants Management Procedural Guide: Warwick Public Schools intends to develop a Warwick Public Schools Federal Grants Management – Procedural Guide by April 2027. This working guide will include both programmatic and financial procedures to promote consistent grant administration and ensure compliance with applicable federal, state, and grant-specific requirements. The guide will establish clear expectations for grant oversight, reporting deadlines, financial documentation, expenditure monitoring, and coordination among the Grants Office, Business Office, and other relevant departments. It will serve as a reference for staff responsible for administering and monitoring grant-funded programs and expenditures. The Grants Management Calendar, Grant Tracker, and annual grant position and funding notification procedures were implemented as of September 30, 2026. Completion of the Federal Grants Management Procedural Guide by April 2027 will serve as an additional step toward strengthening internal controls, standardizing grant administration, and supporting ongoing compliance.

View Audit 415155

Finding 1240756 (2025-002)

Material Weakness 2025

City of Warwick, Rhode Island

RI

Reporting Significant Deficiency Internal Control / Segregation of Duties § 200.328

All quarterly reports were reviewed and combined into a single report. All obligations and expenses as of 6/30/2024 and 6/30/2025 were examined and a determination of correct obligation and expenses was made. These new numbers were used for the report dated 10/15/2025. By the time the FY24 report wa...

All quarterly reports were reviewed and combined into a single report. All obligations and expenses as of 6/30/2024 and 6/30/2025 were examined and a determination of correct obligation and expenses was made. These new numbers were used for the report dated 10/15/2025. By the time the FY24 report was completed and issue was found, FY25 was over. This issue is corrected for FY26.

View Audit 415155

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