Corrective Action Plans

Finding 1220094 (2025-003)

Material Weakness 2025

Scotts Bluff County School District No. 16 Gering Public Schools

NE

Procurement, Suspension & Debarment § 200.318

Child Nutrition Cluster – Assistance Listing No. 10.CNC Recommendation: We recommend that the District develop, approve, and implement written standards of conduct in compliance with 2 CFR §200.318(c)(1)–(2). The standards should address individual and District conflicts of interest, restrictions on...

Child Nutrition Cluster – Assistance Listing No. 10.CNC Recommendation: We recommend that the District develop, approve, and implement written standards of conduct in compliance with 2 CFR §200.318(c)(1)–(2). The standards should address individual and District conflicts of interest, restrictions on gifts and gratuities, and disciplinary actions for violations, and should be communicated to all personnel involved in procurement activities. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We will create a policy for conflict of interest requirements of Uniform Guidance. Name(s) of the contact person(s) responsible for corrective action: Stacy Rodriguez Director of Finance Planned completion date for corrective action plan: September 2025

View Audit 405300

Finding 1220090 (2025-003)

Material Weakness 2025

Northeastern Regional Association of Coastal Ocean Observing Systems

NH

Subrecipient Monitoring Procurement, Suspension & Debarment Reporting § 200.332

Audit Finding Reference Number: 2025 – 003 Finding: NERACOOS submitted FFATA reports for the initial subaward agreements; however, the reports were not updated timely for subsequent subaward amendments. Specifically, amended subaward amounts and amendment dates were not reported timely and accuratel...

Audit Finding Reference Number: 2025 – 003 Finding: NERACOOS submitted FFATA reports for the initial subaward agreements; however, the reports were not updated timely for subsequent subaward amendments. Specifically, amended subaward amounts and amendment dates were not reported timely and accurately in SAM.gov. Corrective Action Plan: Develop a subaward amendment tracking log to record all subaward modifications, including amendment dates, revised subaward amounts, and FFATA reporting due dates. The log will be updated each time a subaward amendment is executed. Establish a written procedure requiring that any subaward amendment triggering a change in amount or key data be reported in SAM.gov within the required timeframe (no later than the end of the month following the month in which the obligation or award was made). Designate a staff member responsible for FFATA reporting compliance and assign a backup to ensure coverage during absences. Implement a quarterly reconciliation between executed subaward agreements/amendments and SAM.gov reporting records to identify and remediate any unreported or inaccurate entries. Provide training to relevant Finance and Grants Management staff on FFATA reporting requirements under 2 CFR Section 200.332 and SAM.gov reporting procedures. Retroactively update SAM.gov for any subaward amendments identified during the audit as not having been reported or reported inaccurately. Responsible Official: Jake Kritzer, Executive Director Anticipated Completion Date: August 31, 2026 (retroactive corrections); ongoing quarterly reconciliation beginning July 2026

View Audit 405299

Finding 1220089 (2025-002)

Material Weakness 2025

Northeastern Regional Association of Coastal Ocean Observing Systems

NH

Allowable Costs / Cost Principles Cash Management Material Weakness

Audit Finding Reference Number: 2025 – 002 Finding: NERACOOS recorded federal grant revenue for certain grants related to FY2025 activities in FY2026, based on the timing of reimbursement receipts rather than when the underlying expenditures were incurred. As a result, federal grant revenue and rela...

Audit Finding Reference Number: 2025 – 002 Finding: NERACOOS recorded federal grant revenue for certain grants related to FY2025 activities in FY2026, based on the timing of reimbursement receipts rather than when the underlying expenditures were incurred. As a result, federal grant revenue and related receivables for FY2025 were understated, while revenue in FY2026 was overstated for the related amounts. In addition, this may lead to misstatements in financial reporting if similar cutoff issues occur in future periods. Corrective Action Plan: Develop and implement a formal year-end revenue cutoff checklist specifically for federal grants. The checklist will require a review of all active federal awards within 60 days and then again in 30 days of fiscal year-end to identify allowable expenditures incurred but not yet reimbursed. Establish a procedure to record grant receivables and revenue accruals for identified unbilled costs prior to closing the accounting records each fiscal year. Train the Finance staff responsible for grant accounting on the accrual basis requirements under 2 CFR Part 200 and proper cutoff procedures. Incorporate a supervisory review step into the year-end close process to verify that all grant-related receivables and revenue accruals have been posted before the books are closed. Incorporate the cutoff review into the annual audit preparation timeline and document results for auditor review. Review the FY2025 federal financial reports submitted for CFDA 11.012 to determine whether any amendments or corrections are required, and coordinate with the federal agency as appropriate. Prior to submission of any federal financial reports (e.g., SF-425 Federal Financial Reports), confirm that recorded grant revenue and expenditures reflect all accrued amounts throughout the reporting period. Review draft federal financial reports against the general ledger before submission to verify consistency between reported and recorded amounts. Responsible Official: Jake Kritzer, Executive Director Anticipated Completion Date: September 30, 2026

View Audit 405299

Finding 1220085 (2025-004)

Material Weakness 2025

City of Loxley, Alabama

AL

Procurement, Suspension & Debarment Subrecipient Monitoring Matching / Level of Effort / Earmarking § 200.318

FINDING 2025-004 The City does not have documented procurement policies and procedures in place as required by the Uniform Guidance. Furthermore, the City did not monitor contractor compliance with BABA provisions. Management’s Response The City will adopt documented procurement policies and procedu...

FINDING 2025-004 The City does not have documented procurement policies and procedures in place as required by the Uniform Guidance. Furthermore, the City did not monitor contractor compliance with BABA provisions. Management’s Response The City will adopt documented procurement policies and procedures and monitor contractor compliance with BABA provisions in FY 2026.

View Audit 405294

Finding 1220084 (2025-001)

Material Weakness 2025

POVERTY & SOCIAL REFORM INSTITUTE, INC.D/B/A LEAPS AND BOUNDS FAMILY SERVICES

MI

Allowable Costs / Cost Principles Cash Management Significant Deficiency

Poverty and Social Reform Institute Dba Leaps and Bounds Family Services has updated the policies and procedures for the agency to reflect the Uniform Guidance requirements regarding the process and controls used to administer federal awards. These changes address the issue of non-compliance by form...

Poverty and Social Reform Institute Dba Leaps and Bounds Family Services has updated the policies and procedures for the agency to reflect the Uniform Guidance requirements regarding the process and controls used to administer federal awards. These changes address the issue of non-compliance by formally addressing the roles and responsibilities in writing of who at the agency is responsible for insuring that the Uniform Guidance is followed. The updated policy covers the areas of: allowable costs, cash management, procedures, and conflicts of interest. The new policy will be presented and reviewed for approval at the July 22nd, 2026, board meeting. We believe this corrective action plan will address the non-compliance and bring the agency into full compliance moving forward.

View Audit 405290

Finding 1220083 (2025-002)

Material Weakness 2025

Fulton Atlanta Community Action Authority, Inc.

GA

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303 § 200.430

Comment #2025-001 COMPENSATION METHODOLOGY SHOULD BE REVIEWED FOR INCENTIVE PAYMENTS COMMUNITY SERVICES BLOCK GRANT AND LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM FAL #93.569 and 93.568 Views of Responsible Officials and Planned Corrective Actions: Management concurs with the recommendation. FACAA up...

Comment #2025-001 COMPENSATION METHODOLOGY SHOULD BE REVIEWED FOR INCENTIVE PAYMENTS COMMUNITY SERVICES BLOCK GRANT AND LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM FAL #93.569 and 93.568 Views of Responsible Officials and Planned Corrective Actions: Management concurs with the recommendation. FACAA updated its Incentive Compensation Policy, which was approved by the Board of Directors, in accordance with 2 CFR 200.430 and 2 CFR 200.303. The policy establishes the methodology for incentive payments, and all incentive payments have been documented and supported by appropriate records to ensure compliance with applicable federal requirements. Implementation Date: Effective immediately, our policies have been enhanced to clarify and support our methodology used during the periods noted under review, and for all subsequent periods. Responsible Person(s): Dr. Howard Grant, President/CEO

View Audit 405272

Finding 1220059 (2025-001)

Material Weakness 2025

Chisholm-Hibbing Airport Authority

MN

Internal Control / Segregation of Duties Questioned Costs Reporting

Actions Planned - The Authority is not in position to hire additional staff members for the sole purpose of eliminated the segregation of duties finding from our audit. The Airport Office Adminstrator communicates with the Executive Director and commission members regarding all major account transac...

Actions Planned - The Authority is not in position to hire additional staff members for the sole purpose of eliminated the segregation of duties finding from our audit. The Airport Office Adminstrator communicates with the Executive Director and commission members regarding all major account transactions, including the recording of recurring and non-recurring jounral entry adjustments. The commission meets monthly and closely monitors the financial information provded to them. Official responsible: Airport Office Administrator Planned Completion Date - On-going monitoring Disagreement with Finding - none, the Authority concurs with the finding. Plan to Monitor - The Authority is aware of the situation and will monitor, as it deems appropriate. Monitoring will include commission member oversight for the interim and year-end reporting.

View Audit 405239

Finding 1220053 (2025-002)

Material Weakness 2025

Ionia County

MI

Procurement, Suspension & Debarment

Pursuant to federal regulations, Uniform Administrative Requirements Section 200.511, the following are the findings as noted in the Ionia County, Michigan (the County), Single Audit report for the year ended December 31, 2025, and corrective actions to be completed. 2025-002 – Procurement, Suspensi...

Pursuant to federal regulations, Uniform Administrative Requirements Section 200.511, the following are the findings as noted in the Ionia County, Michigan (the County), Single Audit report for the year ended December 31, 2025, and corrective actions to be completed. 2025-002 – Procurement, Suspension and Debarment Auditor Description of Condition and Effect. While the County indicated that they have been completing suspension and debarment checks on County vendors in the past, evidence of these suspension and debarment checks was not retained and made available for audit. As a result of this condition, the County was exposed to the risk that disbursements of federal awards would be made to vendors suspended or debarred by the federal government and subject to disallowance by the grantor. Auditor Recommendation. We recommend that the County verify that any of their vendors with $25,000 spent with federal funds were not suspended or debarred and that documentation of these procedures be retained. Corrective Action. The County will review vendors over $25,000 spent with federal funds to ensure that they are not suspended or debarred and retain documented support for the procedures performed. Responsible Person. Chad Shaw, County Administrator Anticipated Completion Date. December 31, 2026

View Audit 405238

Finding 1220034 (2025-001)

Material Weakness 2025

Norfork School District

AR

Internal Control / Segregation of Duties Special Tests & Provisions Matching / Level of Effort / Earmarking

Our district plans to adhere to the Davis-Bacon Act when utilizing federal funding.

View Audit 405229

Finding 1220033 (2025-001)

Material Weakness 2025

Gwinnett Walton Habitat for Humanity, Inc.

GA

Reporting Significant Deficiency Internal Control / Segregation of Duties § 200.507

Description of Finding: The organization did not complete and submit its Single Audit within the required timeframe due to special projects (mortgage sales) that dramatically limited staff bandwidth in key financial management positions, resulting in delays in audit coordination and reporting and th...

Description of Finding: The organization did not complete and submit its Single Audit within the required timeframe due to special projects (mortgage sales) that dramatically limited staff bandwidth in key financial management positions, resulting in delays in audit coordination and reporting and the timing of commencing the audit.Statement of Concurrence: The organization concurs with this finding.Corrective Action: The organization has resolved the underlying cause of this finding by streamlining the data collection process related to mortgage sales transactions. Furthermore, the organization is in the process of reorganizing the financial department to streamline workflows. The Staff Accountant in partnership with the Director of Finance & Administration are responsible for oversight of financial reporting, compliance with Uniform Guidance (2 CFR Part 200), and coordination of the Single Audit process.Corrective actions implemented include:• Departmental reorganization is underway to streamline workflows and provide clear ownership of departmental responsibilities (including single audit compliance) between Staff Accountant and Director of Finance and Administration.• Development of a formal audit timeline and internal milestones to ensure timely audit initiation, completion, and submission.• Strengthening of internal controls over financial reporting and audit documentation.• Ongoing communication and coordination with external auditors to ensure compliance with federal audit requirements. These actions ensure that future Single Audits will be completed and submitted timely in accordance with Uniform Guidance.Status of Finding: This finding resulted from unexpected special projects that limited financial staff bandwidth as well as fragmented workflows, which have both been addressed. Corrective action is in process.Projected Completion Date: Corrective action completed as of 6/5/2026, with ongoing monitoring incorporated into standard financial management procedures.

View Audit 405221

Finding 1220032 (2025-003)

Material Weakness 2025

Src, Inc.

NY

Procurement, Suspension & Debarment

SRC will reinforce its price analysis internal controls by providing staff with additional training on SPP 3.2, Performing a Price Analysis. SRC will also strengthen its internal controls to ensure proper price analyses are performed for all applicable purchases in accordance with FAR 15.404(b)(2)(i...

SRC will reinforce its price analysis internal controls by providing staff with additional training on SPP 3.2, Performing a Price Analysis. SRC will also strengthen its internal controls to ensure proper price analyses are performed for all applicable purchases in accordance with FAR 15.404(b)(2)(ii)(A). Contact Person Responsible for Corrective Action: Victor Burdukov, Manager, Subs & Procure Compliance Completion Date: Training, review of policy and procedures will be completed by September 30, 2026.

View Audit 405219

Finding 1220031 (2025-002)

Material Weakness 2025

Src, Inc.

NY

Internal Control / Segregation of Duties Allowable Costs / Cost Principles

SRC will revise its Labor Recording Policy to establish a specific timeframe for the replacement of all interim employee signatures and supervisory approvals. While SRC believes that strong internal controls are currently in place for this process, we will review these controls and make updates as n...

SRC will revise its Labor Recording Policy to establish a specific timeframe for the replacement of all interim employee signatures and supervisory approvals. While SRC believes that strong internal controls are currently in place for this process, we will review these controls and make updates as needed to ensure continued compliance and effective monitoring. Contact Person Responsible for Corrective Action: Lisa Kennedy, Director, Corporate Controller Completion Date: Review of policy and procedures will be completed by September 30, 2026.

View Audit 405219

Finding 1220030 (2025-001)

Material Weakness 2025

Src, Inc.

NY

Allowable Costs / Cost Principles

Regarding residual value, SRC’s policy follows FAR 31.205 11, which requires recognition of residual value only when it exceeds ten percent of the asset’s capitalized cost. SRC’s policy and Disclosure Statement do not mandate a standard ten percent residual value, and historical disposals have not r...

Regarding residual value, SRC’s policy follows FAR 31.205 11, which requires recognition of residual value only when it exceeds ten percent of the asset’s capitalized cost. SRC’s policy and Disclosure Statement do not mandate a standard ten percent residual value, and historical disposals have not resulted in the recovery of salvage value. While the system default is currently set to zero percent residual value, SRC notes that the system allows adjustments when supported and therefore does not view the default setting alone as indicative of a deficiency. SRC is completing a multi year review of the existence and status of tangible assets, including validation of active and withdrawn assets. Results will inform any needed updates to the useful life matrix and related policies, and SRC continues to train employees to reinforce capital asset compliance. Key corrective actions completed to date include: • Updated and strengthened asset useful life practices, including revised policies, forms, matrices, and ongoing reviews of useful lives and fully depreciated assets. • Implemented enterprise wide controls for asset accountability, including periodic physical counts, disposals processing, and enhanced tracking in Costpoint. • Expanded and updated capital asset training and procedures, adding guidance on useful lives, residual value, active/inactive status, and tagging requirements. Remaining corrective actions, including reviews of related policies and procedures, will be completed by 9/30/2026. As part of our corrective action, SRC will periodically evaluate the results of its ongoing asset verification activities and make additional updates as needed. Contact Person Responsible for Corrective Action: Lisa Kennedy, Director, Corporate Controller Completion Date: Review of policy and procedures will be completed by September 30, 2026.

View Audit 405219

Finding 1219681 (2025-001)

Material Weakness 2025

Broward County, Florida

FL

Eligibility Questioned Costs Procurement, Suspension & Debarment

Management concurs with this finding. The expenditure understatement in the initial Schedule of Expenditures of Federal Awards (SEFA) for ALN 97.036 (Disaster Grants – Public Assistance) was caused by an operating deficiency in year-end review procedures, rather than the design of the control itself...

Management concurs with this finding. The expenditure understatement in the initial Schedule of Expenditures of Federal Awards (SEFA) for ALN 97.036 (Disaster Grants – Public Assistance) was caused by an operating deficiency in year-end review procedures, rather than the design of the control itself. Although the discrepancy was not identified internally prior to the initial draft submission, the error was isolated to the aforementioned program and fully corrected before the final draft SEFA was issued to the Auditors. Management is committed to strengthening the controls necessary to ensure complete and accurate SEFA reporting going forward. The FASD Division, in coordination with the Emergency Management Division and the Broward Sheriff’s Office (BSO), will enhance the SEFA Preparation and Reconciliation Protocol for year-end September 30, 2026. To ensure compliance, all departments administering and reporting under ALN 97.036 will receive comprehensive training on Uniform Guidance and FEMA Public Assistance (PA) reporting requirements prior to the fiscal year-end.

View Audit 405215

Finding 1219680 (2025-003)

Material Weakness 2025

Jacksonville Housing Authority

FL

HUD Housing Programs § 200.516

Finding 2025-003 Eligibility Project Based Cluster Corrective Action: • JHA will continue to monitor deficiencies to effectively streamline internal process controls including but not limited to the hiring of quality control analysts, data integrity analysts and monthly file auditing • JHA will crea...

Finding 2025-003 Eligibility Project Based Cluster Corrective Action: • JHA will continue to monitor deficiencies to effectively streamline internal process controls including but not limited to the hiring of quality control analysts, data integrity analysts and monthly file auditing • JHA will create a sample file to ensure standardization. • JHA will provide training to all new employees within 60 days and refresher course training for all existing employees. • JHA performs monthly audits of 10% of files and maintains a quality control system to track error trends, identify deficiencies

View Audit 405213

Finding 1219678 (2025-002)

Material Weakness 2025

Jacksonville Housing Authority

FL

HUD Housing Programs § 200.516

Finding 2025-002 Eligibility Low Rent Public Housing Corrective Action: • JHA has created sample files to ensure standardization. • JHA has delivered internal Public Housing training to all employees. In addition, JHA conducted Rent Calculation training on September 11, 2025. All participating emplo...

Finding 2025-002 Eligibility Low Rent Public Housing Corrective Action: • JHA has created sample files to ensure standardization. • JHA has delivered internal Public Housing training to all employees. In addition, JHA conducted Rent Calculation training on September 11, 2025. All participating employees successfully achieved a passing score on the required certification assessment. • JHA will provide training to all new employees within 60 days and refresher course training for all existing employees. JHA performs monthly audits of 10% of files and maintains a quality control system to track error trends, identify deficiencies and correct deficiencies. • JHA will continue to monitor deficiencies to effectively streamline internal process controls including but not limited to the hiring of quality control analysts and data integrity analyst and monthly file auditing.

View Audit 405213

Finding 1219677 (2025-001)

Material Weakness 2025

Jacksonville Housing Authority

FL

HUD Housing Programs Questioned Costs Eligibility

FINDING SUMMARY: Jacksonville Housing Authority (JHA) identified deficiencies within the Low-Income Public Housing and Housing Choice Voucher Program related to eligibility determinations, including missing documentation, incomplete reexaminations, incorrect income calculations, and insufficient qua...

FINDING SUMMARY: Jacksonville Housing Authority (JHA) identified deficiencies within the Low-Income Public Housing and Housing Choice Voucher Program related to eligibility determinations, including missing documentation, incomplete reexaminations, incorrect income calculations, and insufficient quality control processes. These deficiencies resulted in non-compliance with 24 CFR 960.257 and 24 CFR 960.259. CORRECTIVE ACTION FRAMEWORK: JHA has established a PHAS and SEMAP-aligned compliance tracking framework which includes: • Defined compliance indicators • Measurable performance thresholds • Monthly monitoring and reporting • Documented corrective actions and outcomes Each corrective action below is tied to an audit find. Corrective Action: • JHA will continue to monitor deficiencies to effectively streamline internal process controls including but not limited to the hiring of quality control analysts, data integrity analysts and monthly file auditing • JHA will create a sample file to ensure standardization. • JHA will provide training to all new employees within 60 days and refresher course training for all existing employees. • JHA performs monthly audits of 10% of files and maintains a quality control system to track error trends, identify deficiencies

View Audit 405213

Finding 1219674 (2025-004)

Material Weakness 2025

City of Long Beach

CA

HUD Housing Programs Eligibility Reporting § 200.303

Program: Section 8 Housing Choice Vouchers (HCV) Finding: 2025-004 Finding Title: Internal Controls Over Participants Reexaminations Identification as a repeat finding if applicable: 2024-007 Contact Person: Michelle Mel-Duch, Housing Administrative and Financial Services Officer, Health & Human Ser...

Program: Section 8 Housing Choice Vouchers (HCV) Finding: 2025-004 Finding Title: Internal Controls Over Participants Reexaminations Identification as a repeat finding if applicable: 2024-007 Contact Person: Michelle Mel-Duch, Housing Administrative and Financial Services Officer, Health & Human Services Department, (562) 570-5344, Michelle.Mel-Duch@longbeach.gov Planned Actions: HACLB has updated its SEMAP Quality Control sample size worksheet to ensure the minimum required sample size is calculated using the total number of assisted families, in accordance with HUD SEMAP Indicator 3 requirements. The revised worksheet will be used for future quality control reviews to ensure compliance with federal requirements. In addition, HACLB has transitioned to the MRI housing management software platform, which provides enhanced reporting capabilities to generate accurate listings of assisted families, support the selection and tracking of quality control samples. To strengthen internal controls, HACLB will implement and document completion of reviews of reexamination files selected for SEMAP quality control. Expected Completion Date: December 31, 2026

View Audit 405210

Finding 1219672 (2025-003)

Material Weakness 2025

City of Long Beach

CA

HUD Housing Programs § 200.303

Program: Section 8 Housing Choice Vouchers (HCV) Finding: 2025-003 Finding Title: Internal Controls over Compliance of Reinspection’s to Enforce Housing Quality Standards Identification as a repeat finding if applicable: 2024-005 Contact Person: Michelle Mel-Duch, Housing Administrative and Financia...

Program: Section 8 Housing Choice Vouchers (HCV) Finding: 2025-003 Finding Title: Internal Controls over Compliance of Reinspection’s to Enforce Housing Quality Standards Identification as a repeat finding if applicable: 2024-005 Contact Person: Michelle Mel-Duch, Housing Administrative and Financial Services Officer, Health & Human Services Department, (562) 570-5344, Michelle.Mel-Duch@longbeach.gov Planned Actions: Process Improvement for Reinspection Scheduling HACLB implemented an enhanced reinspection scheduling process designed to ensure that all reinspections are completed prior to the expiration of the required 30-day correction period. As part of this effort, HACLB configured its housing management software system (MRI) to generate and schedule reinspections upon identification of deficiencies. Compliance Monitoring HACLB utilizes MRI to identify and track cases where extensions have been requested or approved. The MRI functionality provides staff with visibility into extension requests while maintaining oversight of compliance requirements. Inspections staff reviews scheduling reports to monitor upcoming and overdue reinspections, verify completion of required inspections, and ensure timely follow-up on outstanding cases. Ongoing Monitoring and Quality Assurance To further strengthen compliance, inspections staff will conduct periodic reviews of payment hold reports to track approved extensions and to verify that all required reinspections have been scheduled. Any identified discrepancies will be promptly addressed through corrective action, staff coaching, and process improvements as necessary. Expected Completion Date: December 31, 2026

View Audit 405210

Finding 1219670 (2025-002)

Material Weakness 2025

City of Long Beach

CA

HUD Housing Programs Procurement, Suspension & Debarment Allowable Costs / Cost Principles § 200.303

Program: Section 8 Housing Choice Vouchers (HCV) Finding: 2025-002 Finding Title: Internal Controls and Compliance over the Timeliness of Housing Choice Voucher Participant Re-examination and Recertification Identification as a repeat finding if applicable: 2024-003 Contact Person: Michelle Mel-Duch...

Program: Section 8 Housing Choice Vouchers (HCV) Finding: 2025-002 Finding Title: Internal Controls and Compliance over the Timeliness of Housing Choice Voucher Participant Re-examination and Recertification Identification as a repeat finding if applicable: 2024-003 Contact Person: Michelle Mel-Duch, Housing Administrative and Financial Services Officer, Health & Human Services Department, (562) 570-5344, Michelle.Mel-Duch@longbeach.gov Planned Actions: Staffing Augmentation and Organizational Support HACLB has recruited additional Housing Specialists to support management of the high-volume Housing Choice Voucher (HCV) Program, improve processing efficiency, and ensure compliance with HUD requirements and program deadlines. HACLB has hired a Housing Administrative and Financial Services Officer and a Housing Operations Program Officer. These positions provide strategic oversight of program operations, staff productivity, workload management, resource allocation, and performance monitoring. As of June 23, 2026, eight Housing Specialists have been hired and have undergone training. HACLB has requested renewal of the supervisory eligibility list to fill several vacant supervisory positions critical to operational oversight and staff development. To further reduce the backlog, HACLB has reassigned duties and created a dedicated team responsible for tracking overdue recertifications, monitoring progress, and implementing measures to ensure ongoing compliance. Contracted Support Services To accelerate backlog reduction efforts, HACLB renewed its contract with an external agency to provide dedicated assistance with processing overdue reexaminations. Additionally, HACLB has initiated a competitive procurement process to secure supplemental third-party support services to assist with backlog clearance and provide additional operational capacity while newly hired staff complete training and onboarding. Technology Improvements HACLB has transitioned to a new housing management software platform (MRI PHA Pro) designed to improve annual recertification tracking, workflow management, reporting capabilities, and productivity monitoring. The software system provides: • Enhanced monitoring of annual recertification deadlines. • Improved workflow tracking and assignment management. • Dashboard reporting and exception monitoring. • Increased visibility into staff productivity and workload distribution. • Improved compliance monitoring Additional Actions Taken to Date HACLB has implemented several operational improvements to strengthen internal controls and maintain compliance: Process Improvements • Revised recertification workflows and assignment procedures. • Established productivity targets and performance expectations for Housing Specialists. • Utilized MRI dashboards and exception reports to identify overdue cases and trigger management escalation procedures. • Increased supervisory oversight of workload distribution and case processing. Data Monitoring and Oversight Program management and data analytics staff actively monitor program performance and backlog reduction efforts through: • Regular forecasting and workload analysis. • Prioritization of high-risk and overdue cases. • Exception reporting and trend monitoring. • Ongoing evaluation of staffing needs and productivity levels. Staff Training HACLB continues to provide training for both new and existing staff on: • HUD recertification requirements. • Timeliness standards. • Case processing procedures. • Workflow management and quality assurance practices. Expected Completion Date: December 31, 2026

View Audit 405210

Finding 1219668 (2025-001)

Material Weakness 2025

City of Long Beach

CA

Matching / Level of Effort / Earmarking Subrecipient Monitoring Questioned Costs § 200.303 § 200.511

Program:HOME Investment Partnerships Program (HOME) Finding:2025-001 Contact Person:April Apodaca Administrative & Financial Services Bureau Manager Community Development Department Phone: (562) 570-6611 Email: April.Apodaca@longbeach.gov Planned Actions: The City has exercised its rights to enforce...

Program:HOME Investment Partnerships Program (HOME) Finding:2025-001 Contact Person:April Apodaca Administrative & Financial Services Bureau Manager Community Development Department Phone: (562) 570-6611 Email: April.Apodaca@longbeach.gov Planned Actions: The City has exercised its rights to enforce compliance with the terms of its contractual arrangement for this standalone developer/owner, which has resulted in the highest levels of legal action. Through its established monitoring and review procedures, City staff identified documents submitted by the developer that appeared to be inaccurate or falsified. This discovery prompted a multi-year investigation and subsequent litigation, undertaken in direct collaboration and response to instructions as directed by HUD. Throughout this period, the City’s investigative and litigation activities have not been historically viewed as compliance concerns, particularly given their necessity in preserving the integrity of the legal process. At every stage, the City has acted consistently with HUD’s directives and the requirements of the applicable contractual framework. During the multi‑year investigation, HUD expressly instructed the City to continue normal program operations to avoid alerting the developer and to maintain the integrity of the ongoing inquiry. The City respectfully asserts that the audit finding is inconsistent with HUD’s guidance and the historical practices necessary to ensure effective enforcement. Since the initial identification of the finding, the City has taken all reasonable corrective actions within its authority to address the issue and mitigate associated risks. These actions include following established monitoring procedures to ensure compliance with HOME program requirements, making repeated documented requests for tenant eligibility records from the developer/owner, and escalating efforts through the City Attorney. This issue is isolated to one developer/owner and sampling for other developers/owners has not identified similar concerns. The City has been transparent about the ongoing litigation involving the standalone developer/owner responsible for maintaining the records and remains committed in resolving this matter and in pursuing additional actions available once the legal proceedings have been concluded.

View Audit 405210

Finding 1219662 (2025-001)

Material Weakness 2025

Antonio B. Won Pat International Airport Authority, Guam

GU

Reporting Cash Management

Finding No. 2025-001 Preparation of the schedule of expenditures of federal awards Responsible Personnel: John M. Quinata, Executive Manager During the audit, the Authority reviewed the federally funded airport improvement projects (AIP) to ensure that all applicable items charged to the projects we...

Finding No. 2025-001 Preparation of the schedule of expenditures of federal awards Responsible Personnel: John M. Quinata, Executive Manager During the audit, the Authority reviewed the federally funded airport improvement projects (AIP) to ensure that all applicable items charged to the projects were accounted for. Correcting entries were made to FY25 and FY24 was restated to address the identified misstatements. To prevent future issues from occurring, the Authority has updated its procedures to enhance the process for identifying federal receivables and controls for reviewing and reconciling the SEFA with financial statement records. Timely reviews will take place at least quarterly. Any future changes to the process must be discussed, agreed upon with management, and documented.

View Audit 405200

Finding 1219647 (2025-001)

Material Weakness 2025

Glens Falls Housing Authority

NY

Reporting Internal Control / Segregation of Duties

CORRECTIVE ACTION: Management is in agreement with the auditor’s recommendations. We are confident that our March 31, 2026 audit will be completed by the December 31, 2026 deadline. If there are questions regarding this corrective action plan, please contact Ms. Stephanie Nasr, Executive Director at...

CORRECTIVE ACTION: Management is in agreement with the auditor’s recommendations. We are confident that our March 31, 2026 audit will be completed by the December 31, 2026 deadline. If there are questions regarding this corrective action plan, please contact Ms. Stephanie Nasr, Executive Director at (518) 793-2583.

View Audit 405188

Finding 1219645 (2025-002)

Material Weakness 2025

South Texas Development Council

TX

Reporting Subrecipient Monitoring § 200.512

Finding 2025-002 - Untimely Submission of the Single Audit Reporting Package to the Federal Audit Clearinghouse Noncompliance | Repeat Finding | Entity-Wide Questioned Costs: None Repeat Finding: Yes - repeat of Finding 2024-004; fourth consecutive year Responsible Official(s): Juan E. Rodriguez, Ex...

Finding 2025-002 - Untimely Submission of the Single Audit Reporting Package to the Federal Audit Clearinghouse Noncompliance | Repeat Finding | Entity-Wide Questioned Costs: None Repeat Finding: Yes - repeat of Finding 2024-004; fourth consecutive year Responsible Official(s): Juan E. Rodriguez, Executive Director (primary); Josafat Saldivar, Finance Director Anticipated Completion Date: June 30, 2027 (for the fiscal year 2026 single audit cycle) Management Response: STDC concurs with the finding. The fiscal year 2024 single audit reporting package was submitted to the Federal Audit Clearinghouse after the nine-month regulatory deadline, marking the fourth consecutive year of late submission. STDC understands that timely submission is essential to maintaining compliance and to supporting removal of its high-risk auditee designation. Corrective Action to Be Taken: STDC will adopt a board-approved audit readiness calendar under which year-end records are closed and reconciled within 90 days of fiscal year end, the auditor is engaged by December, and complete supporting documentation is delivered to the auditor by February. STDC will target Federal Audit Clearinghouse submission by April of each year, well ahead of the nine-month deadline. For the fiscal year 2025 audit, STDC has worked to complete the engagement on an accelerated schedule with a target submission on or before the June 30, 2026 deadline. Achieving timely submission for the fiscal year 2025 cycle and maintaining it thereafter is expected to support removal of the high-risk auditee designation in a future audit cycle.

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Finding 1219608 (2025-001)

Material Weakness 2025

South Texas Development Council

TX

Reporting

Finding 2025-001 - Untimely Submission of Financial Status and Expenditure Reports, All Major Programs Significant Deficiency in Internal Control over Compliance and Noncompliance | Repeat Finding Questioned Costs: None Repeat Finding: Yes - repeat of Findings 2024-001 and 2024-003 Responsible Offic...

Finding 2025-001 - Untimely Submission of Financial Status and Expenditure Reports, All Major Programs Significant Deficiency in Internal Control over Compliance and Noncompliance | Repeat Finding Questioned Costs: None Repeat Finding: Yes - repeat of Findings 2024-001 and 2024-003 Responsible Official(s): Josafat Saldivar, Finance Director (primary); Juan E. Rodriguez, Executive Director (oversight and approval) Anticipated Completion Date: September 30, 2026 Management Response: STDC concurs with the finding. STDC acknowledges that financial status and expenditure reports were submitted late across all major programs during fiscal year 2025. STDC recognizes that the submission calendar implemented as the prior-year corrective action did not operate effectively, in part because financial report preparation depends on a single staff member in the finance function. Corrective Action to Be Taken: STDC will implement a hard financial-report close calendar establishing preparation deadlines no later than 10 days after each reporting period end, with required submission well in advance of each contractual due date. STDC will cross-train a second staff member to prepare financial status reports so that submissions do not depend on a single individual. The Executive Director will review the submission calendar monthly, and STDC will track actual submission dates against contractual deadlines on a monitoring dashboard reviewed at each board finance committee meeting. STDC expects these measures to restore timely reporting across all programs during fiscal year 2026.

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