Corrective Action Plans

Finding 1215556 (2025-001)

Material Weakness 2025

TX

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Reporting

Finding 2025-001: Allowable Cost – Significant Deficiency in Internal Controls Over Compliance Program: Block Grants for Prevention and Treatment of Substance Abuse (ALN 93.959) Management Response: Management concurs with the finding. The exceptions identified resulted from a lapse in execution of ...

Finding 2025-001: Allowable Cost – Significant Deficiency in Internal Controls Over Compliance Program: Block Grants for Prevention and Treatment of Substance Abuse (ALN 93.959) Management Response: Management concurs with the finding. The exceptions identified resulted from a lapse in execution of established approval procedures, as 2 of the 25 sampled credit card transactions charged to the grant did not include documented supervisory approval prior to payment. However, compensating controls existed, including Finance Department review of all expenditures prior to payment of the Brex account and additional review of expenses charged to the grant during preparation of monthly grant invoices and reporting. No unallowable costs or, questioned costs, were identified. To remediate the finding, all supervisors have received additional training and reminders regarding requirements for timely review and approval of expenditures prior to payment processing. In addition, the accounting team has implemented procedures prohibiting payment processing until all required approvals have been completed and documented. Management believes these enhanced controls strengthen adherence to existing policies and reduce the likelihood of recurrence. Management notes that the supervisor associated with the exceptions is no longer employed by the Organization; however, corrective actions focus on strengthening processes and controls rather than reliance on personnel changes. Corrective Action Planned/Implemented: • Refresher training provided to supervisors regarding expenditure review and approval requirements. • Accounting procedures updated to prevent payment processing prior to completion and documentation of all required approvals. • Existing accounting department monitoring procedures will continue, including review of expenditures before payment and grant expenditure review during monthly reporting. Responsible Party: Controller / Accounting Department Implementation Date: Implemented as of April 2026

View Audit 402221

Finding 1215547 (2025-001)

Material Weakness 2025

Port Authority of the City of St. Paul

MN

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

Material Weakness – Suspension and Debarment Recommendation: We recommend the Port re-implement its previous controls of using a tracking checklist and retaining documentation of the verification process. Explanation of disagreement with audit finding: There is no disagreement with the audit finding...

Material Weakness – Suspension and Debarment Recommendation: We recommend the Port re-implement its previous controls of using a tracking checklist and retaining documentation of the verification process. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The Port Authority will revise their process to ensure controls are in place and documentation is retained. Name of the contact person responsible for corrective action: Jan Almquist, Controller. Planned completion date for corrective action plan: December 31, 2026

View Audit 402217

Finding 1215546 (2025-001)

Material Weakness 2025

Farrell-Bell Senior Housing Apartments, Inc. 073-Ee119

IN

HUD Housing Programs

Auditee: Farrell-Bell Senior Housing Apartments, Inc. HUD Project Number: 073-EE119 Audit Firm: Agresta, Storms & O’Leary, PC Audit Period Ended December 31, 2025 Corrective Action Plan Prepared by: Name: John Renner Position: Chief Financial & Administrative Officer, United Church Homes, Inc. Telep...

Auditee: Farrell-Bell Senior Housing Apartments, Inc. HUD Project Number: 073-EE119 Audit Firm: Agresta, Storms & O’Leary, PC Audit Period Ended December 31, 2025 Corrective Action Plan Prepared by: Name: John Renner Position: Chief Financial & Administrative Officer, United Church Homes, Inc. Telephone Number: 740-382-4885 A. Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Finding No. 2025-001 A. Comments on the Finding and Each Recommendation: Management agrees with the finding. Management is aware withdrawals from reserve must have HUD approval and account must be fully funded. B. Action Taken or Planned on the Finding: Management will deposit the funds into the replacement reserve when available.

View Audit 402211

Finding 1215545 (2025-001)

Material Weakness 2025

La Center School District

WA

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

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE La Center School District No. 101 September 1, 2024 through August 31, 2025 This schedule presents the corrective action the District is planning to take for findings included in this report in accordance with Title 2 U.S. Code of F...

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE La Center School District No. 101 September 1, 2024 through August 31, 2025 This schedule presents the corrective action the District is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2025-001 Finding caption: The District did not have adequate internal controls and did not comply with time and effort requirements. Name, address, and telephone of District contact person: Gary McGarvie, Business Manager PO Box 1840 La Center, WA 98629 (360) 263-2131 Corrective action the auditee plans to take in response to the finding: (If the auditee does not concur with the finding, the auditee must list the reasons for disagreement). As a new Business Manager completing year-end processes for the first time, I mistakenly overlooked attaching the semi-annual Time & Effort certification forms to the timesheets for our classified staff. While the District did maintain completed timesheets for all staff throughout the year, the formal Time & Effort certification documentation was not completed as required for federal grant compliance. To correct this and prevent it from happening again, the District has since implemented a more structured process to ensure Time & Effort documents are properly completed. This includes attaching semi-annual certification forms directly to timesheets for classified staff and sending certification forms to certificated staff twice a year. This process will ensure that the dollars being spent from federal grants are being used accurately and in accordance with federal requirements. Anticipated date to complete the corrective action: This process has already been implemented and we should not have this issue happen moving forward.

View Audit 402209

Finding 1215543 (2025-001)

Material Weakness 2025

Trinity College of Florida, Inc.

FL

Trinity College of Florida will develop, implement and maintain a written information security program in accordance with GLBA compliance.

View Audit 402204

Finding 1215542 (2025-003)

Material Weakness 2025

National Railroad Passenger Corporation

DC

Procurement, Suspension & Debarment § 200.1 § 200.318 § 200.320

Finding 2025-003: Procurement, Suspension and Debarment The single audit report included the following recommendation: EY recommends that Amtrak include legal expenses within their procurement, suspension and debarment policy as outlined within each of the grant agreements. Management Response/Statu...

Finding 2025-003: Procurement, Suspension and Debarment The single audit report included the following recommendation: EY recommends that Amtrak include legal expenses within their procurement, suspension and debarment policy as outlined within each of the grant agreements. Management Response/Status of Action Plans: Pursuant to Section 26(j) of Amtrak’s annual grants, Amtrak’s policy is to fund most law firm engagements with Program Income without applying grant requirements that apply to other procurements. In FY2025, this was the case for all law firm engagements charged to operating activities. Also, in FY2025, Amtrak had a portion of its legal expenditures charged to capital projects based on the nature of the legal work performed. These capital projects were funded with federal grants. For legal expenditures which are by their nature related to projects funded by grants, Amtrak acknowledges the need to have the proper procurement process including competitive review and/or securing the contractor/law firms’ acceptance of required Supplemental General Provisions/flow-down based on the grants. By the end of FY2026, the Law Department will review and update its internal procedures to better prevent recurrence of legal expenditures that did not have proper competitive review and/or securing the contractor/law firms’ acceptance of required Supplemental General Provisions/flow-downs from being charged to projects funded by grants. As part of that review, Amtrak will consider whether it may be appropriate to utilize the Company’s broader procurement policies. The contacts for this item are Lucia Butts, AVP Funding and Grants and Thomas Bloom, Deputy General Counsel and Corporate Secretary. Amtrak anticipates fully remediating this finding by September 2026.

View Audit 402202

Finding 1215538 (2025-002)

Material Weakness 2025

National Railroad Passenger Corporation

DC

Equipment & Real Property Management Subrecipient Monitoring § 200.303 § 200.313

Finding 2025-002: Equipment and Real Property Management The single audit report included the following recommendation: EY recommends Amtrak set up a system with certain criteria for identifying sites at a higher risk for noncompliance with safeguard requirements, and creates an action plan for eval...

Finding 2025-002: Equipment and Real Property Management The single audit report included the following recommendation: EY recommends Amtrak set up a system with certain criteria for identifying sites at a higher risk for noncompliance with safeguard requirements, and creates an action plan for evaluating, and remediating potential noncompliance. EY recommends that management consider redesigning one of its key controls to help ensure that the monitoring of the observations is occurring on a preventive basis to help identify any exposure to non-compliance before it occurs and clearly identifies any follow-up steps and actions. For example, there should be established a protocol as well as timeline for when required observations are to take place, additionally, as it is known in advance, which items are coming up for inventory, Amtrak could prepare an annual schedule of inventories, that could be revised quarterly. Management Response/Status of Action Plans: Amtrak acknowledges the recommendation that Amtrak should have a system with certain criteria for identifying sites at a higher risk for noncompliance with safeguard requirements and create an action plan for evaluating and remediating potential noncompliance. As part of this effort, the Enterprise Asset Management and Disposition Team will work with Corporate Security to review and, as appropriate, align existing governance processes to reduce the likelihood of similar noncompliance. Amtrak agrees with the recommendation to redesign key controls to help ensure that the monitoring of the observations happens on a preventive basis to help identify any exposure to non-compliance before it occurs. Amtrak published an updated Equipment Control Policy and created an eLearning course, as well as implemented several processes, technologies, and reporting that help to proactively monitor and identify equipment that is 90 days or less of needing an inventory. This has improved the compliance rate from less than 70% in FY22 to over 97% in FY25. Amtrak understands that this is a repeat finding and will review with Infrastructure Maintenance and Construction Services, the owner of equipment that was out of compliance to strengthen the practice and reduce the likelihood of noncompliance. The contact for this item is Robert Hoban, Director Asset Management. Amtrak anticipates fully remediating this finding by September 2028.

View Audit 402202

Finding 1215537 (2025-001)

Material Weakness 2025

National Railroad Passenger Corporation

DC

Subrecipient Monitoring Special Tests & Provisions § 200.302 § 200.303

Finding 2025-001: Review of Compliance Matrices and Narratives – Special Tests and Provisions The single audit report included the following recommendation: EY recommends that Amtrak update the control design with enough precision to ensure that reviews and updates to the compliance matrices are mad...

Finding 2025-001: Review of Compliance Matrices and Narratives – Special Tests and Provisions The single audit report included the following recommendation: EY recommends that Amtrak update the control design with enough precision to ensure that reviews and updates to the compliance matrices are made on a regular cadence to ensure that any updates, amendments or changes are monitored and updated timely. Management Response/Status of Action Plans: Amtrak recognizes the need to improve our controls over the updates of the compliance matrices and will review its control processes. The company specifically notes the need to update its compliance matrices in a regular cadence and after every amendment. Amtrak will develop a process document to create or update compliance matrices that will be used as a guide by compliance matrices preparers and reviewers when one is created or updated. The contact for this item is Lucia Butts, AVP Funding and Grants. Amtrak anticipates fully remediating this finding by September 2026.

View Audit 402202

Finding 1215536 (2025-001)

Material Weakness 2025

Action for Eastern Montana

MT

Reporting

Section III: Federal Award Findings and Questioned Costs 2025-001 Filing of the SF-425 - Noncompliance Management Response: We have implemented a centralized calendar that tracks all reports due under our contracts, including submission deadlines. This tool is actively used to monitor compliance and...

Section III: Federal Award Findings and Questioned Costs 2025-001 Filing of the SF-425 - Noncompliance Management Response: We have implemented a centralized calendar that tracks all reports due under our contracts, including submission deadlines. This tool is actively used to monitor compliance and ensure timely completion of all required reports. Additionally, we are enhancing our internal processes by cross-training staff to review and maintain the reporting calendar. This will provide redundancy, improve oversight, and reduce the risk of missed or delayed submissions. These measures are intended to ensure consistent compliance with contract requirements and address the concerns identified in the audit. Contact Person Responsible for Corrective Action: Lea Ringen, Chief Financial Officer, Anticipated Completed Date of Corrective Action: May 1, 2026.

View Audit 402192

Finding 1215534 (2025-003)

Material Weakness 2025

Tuerk House, Inc.

MD

Procurement, Suspension & Debarment

Tuerk House, Inc. acknowledges the finding related to procurement and suspension and debarment requirements and recognizes the continued need for strengthened internal controls to ensure full compliance with Uniform Guidance and the Organization’s procurement policies. To address this repeat finding...

Tuerk House, Inc. acknowledges the finding related to procurement and suspension and debarment requirements and recognizes the continued need for strengthened internal controls to ensure full compliance with Uniform Guidance and the Organization’s procurement policies. To address this repeat finding, Tuerk House has implemented or is continuing to implement the following corrective actions: • Updated the procurement policy to explicitly include steps for verifying all vendors against the federal government’s System for Award Management (SAM) exclusion list prior to engaging in any procurement activity funded by federal awards. • Implemented a procurement checklist and documentation protocol to ensure proper procedures are followed for purchases exceeding $10,000, including competitive bidding, price or rate quotations, and appropriate vendor selection justification. • Conducted mandatory training for finance and program staff on updated procurement procedures, including documentation and vendor vetting protocols, with ongoing training to reinforce compliance. • Established a centralized record-keeping system to retain documentation related to procurement, vendor selection, and debarment checks in accordance with 2 CFR Part 200 and 2 CFR § 180. The Organization remains committed to full compliance and will continue to ensure that all future procurements charged to federal awards meet the applicable requirements. Organization Contact Person Responsible for Corrective Action – Kisun Peters, Director of Finance Anticipated Completion Date – June 30, 2026

View Audit 402190

Finding 1215533 (2025-002)

Material Weakness 2025

Tuerk House, Inc.

MD

Allowable Costs / Cost Principles Reporting

Tuerk House, Inc. recognizes the importance of maintaining compliance with federal grant requirements related to allowable costs and documentation standards. The Organization acknowledges the continued deficiencies identified in the areas of time and effort reporting and supporting documentation for...

Tuerk House, Inc. recognizes the importance of maintaining compliance with federal grant requirements related to allowable costs and documentation standards. The Organization acknowledges the continued deficiencies identified in the areas of time and effort reporting and supporting documentation for expenditures charged to grant programs and reaffirms its commitment to achieving full compliance. To address this repeat finding, Tuerk House has implemented or is continuing to implement the following corrective actions: • Implemented a formal time and effort certification process requiring employees to certify actual time worked on federal grant activities on a regular basis, rather than relying on budgeted allocations. • Developed a standardized cost allocation methodology that aligns with actual grant activity and is supported by verifiable documentation. • Required that all expenditures charged to federal awards be supported by complete and accurate source documentation, including vendor invoices, timesheets, and approvals. • Established a document retention policy consistent with 2 CFR § 200.334 to ensure all supporting records are retained for the required period and readily accessible for audit or review. Training sessions for program and finance staff have been conducted, and ongoing training will continue to ensure consistent understanding and application of these updated policies and procedures. Organization Contact Person Responsible for Corrective Action – Kisun Peters, Director of Finance Anticipated Completion Date – June 30, 2026

View Audit 402190

Finding 1215515 (2025-001)

Material Weakness 2025

Association of Diabetes Care & Education Specialists

IL

Allowable Costs / Cost Principles Significant Deficiency

Delivering Evidence-Led inTerventions in Arkansas to Advance Healthy Equity and Access in Diabetes Care (DELTA AHEAD) Recommendation: We recommend the Organization review its policies and procedures during the check signing process to ensure all approvals are obtained as required by the Organization...

Delivering Evidence-Led inTerventions in Arkansas to Advance Healthy Equity and Access in Diabetes Care (DELTA AHEAD) Recommendation: We recommend the Organization review its policies and procedures during the check signing process to ensure all approvals are obtained as required by the Organization's internal control policy. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Accounting staff will review the policies, procedures, and workflow with ADCES and grant-focused staff to ensure there is a common understanding across the organization. Name of the contact person responsible for corrective action: Matthew Biecker, Chief Financial Officer Planned completion date for corrective action plan: Immediately

View Audit 402177

Finding 1215514 (2025-004)

Material Weakness 2025

Tule River Indian Health Center INC

CA

Procurement, Suspension & Debarment § 200.318 § 200.326

A procurement checklist will be developed to require proper documentation if utilizing Federal Funds. The checklist will list specific thresholds for procurement based on funding type, and whether the procurement is construction related and list requirements and thresholds for the construction activ...

A procurement checklist will be developed to require proper documentation if utilizing Federal Funds. The checklist will list specific thresholds for procurement based on funding type, and whether the procurement is construction related and list requirements and thresholds for the construction activity. A new vendor checklist will also be developed to ensure that the vendor is not debarred and/or suspended prior to conducting business with them. The checklist will also list other relevant documents that will be needed prior to first payment. The anticipated completion date will be 9/30/2026.

View Audit 402165

Finding 1215512 (2025-003)

Material Weakness 2025

Tule River Indian Health Center INC

CA

Eligibility

The supervisor of registration employees will oversee quarterly patient file reviews of patients registered as beneficiaries to ensure that the required documentation is acquired from the patients. Patient files that lack the required documentation, will be flagged in a way that will be noticeable b...

The supervisor of registration employees will oversee quarterly patient file reviews of patients registered as beneficiaries to ensure that the required documentation is acquired from the patients. Patient files that lack the required documentation, will be flagged in a way that will be noticeable by anyone that has access to the files. The clinic will also consider an outside department like PRC which also validates beneficiary information could get involved in a mid-fiscal year review of the beneficiary patient files to provide a secondary review of the files. The anticipated completion date will be 9/30/2026.

View Audit 402165

Finding 1215510 (2025-002)

Material Weakness 2025

School District of Fort Atkinson

WI

School Nutrition Programs Cash Management

Condition: Multiple students were incorrectly coded as free and reduced meal status when they should have been switched to paid status. Plan: The District will ensure the direct certification list is properly maintained and put new processes in place to verify students’ meal status year over year. A...

Condition: Multiple students were incorrectly coded as free and reduced meal status when they should have been switched to paid status. Plan: The District will ensure the direct certification list is properly maintained and put new processes in place to verify students’ meal status year over year. Anticipated Date of Completion: The District will correct this for the 2025-2026 school year. Name of Contact Person: Nathan Knitt, Director of Business Services Management Response: The School District of Fort Atkinson accepts the plan for the Corrective Action listed above and does not dispute anything.

View Audit 402162

Finding 1215504 (2025-001)

Material Weakness 2025

School District of Fort Atkinson

WI

Cash Management Reporting School Nutrition Programs

Condition: Supporting documentation for the monthly food service meals provided did not align with the claims reported for reimbursement by free, reduced, and paid categories. Plan: The District will review supporting documentation for meals to ensure all meals are accounted for. Anticipated Date of...

Condition: Supporting documentation for the monthly food service meals provided did not align with the claims reported for reimbursement by free, reduced, and paid categories. Plan: The District will review supporting documentation for meals to ensure all meals are accounted for. Anticipated Date of Completion: The District will correct this for the 2025-2026 school year. Name of Contact Person: Nathan Knitt, Director of Business Services Management Response: The School District of Fort Atkinson accepts the plan for the Corrective Action listed above and does not dispute anything.

View Audit 402162

Finding 1215496 (2025-001)

Material Weakness 2025

Colville School District No. 115

WA

Procurement, Suspension & Debarment School Nutrition Programs Subrecipient Monitoring

Finding caption: The District did not have adequate internal controls and did not comply with federal suspension and debarment requirements Name, address, and telephone of School District contact person: Heather Judd 217 S Hofstetter Colville, WA 99114 (509) 684-7856 Corrective action the auditee pl...

Finding caption: The District did not have adequate internal controls and did not comply with federal suspension and debarment requirements Name, address, and telephone of School District contact person: Heather Judd 217 S Hofstetter Colville, WA 99114 (509) 684-7856 Corrective action the auditee plans to take in response to the finding: (If the auditee does not concur with the finding, the auditee must list the reasons for disagreement). The District will strengthen internal controls over suspension and debarment compliance for Nutrition Services vendors. Effective immediately, all vendors expected to meet or exceed the $25,000 federal threshold will require documented suspension and debarment verification prior to contract execution or renewal. The Nutrition Services Director will be responsible for completing and maintaining documentation of the verification; however, the Business Office will implement an annual review each September 1 to ensure all required checks are completed, properly documented, and retained. Additionally, procedures will be updated to require submission of all debarment and suspension documentation to the Business Office for centralized recordkeeping, with periodic monitoring throughout the year to ensure compliance despite staff turnover. Anticipated date to complete the corrective action: 9/1/26

View Audit 402155

Finding 1215492 (2025-005)

Material Weakness 2025

South Big Horn Hospital District

WY

Reporting Significant Deficiency Matching / Level of Effort / Earmarking

2025-005 - Reporting Corrective Action Plan: Management agrees with the finding and has committed the resources giving rise to the finding. Person(s) Responsible: M. Michael Garza Timing for Implementation: June 30, 2026.

View Audit 402151

Finding 1215490 (2025-001)

Material Weakness 2025

Pasco School District No. 1

WA

Procurement, Suspension & Debarment School Nutrition Programs Internal Control / Segregation of Duties

Finding ref number: 2025-001 Finding caption: The District did not have adequate internal controls for ensuring compliance with federal procurement requirements. Name, address, and telephone of District contact person: Tom Hitt, Purchasing and Compliance Manager 1215 W. Lewis Street Pasco, WA 99301 ...

Finding ref number: 2025-001 Finding caption: The District did not have adequate internal controls for ensuring compliance with federal procurement requirements. Name, address, and telephone of District contact person: Tom Hitt, Purchasing and Compliance Manager 1215 W. Lewis Street Pasco, WA 99301 Phone: (509) 543-6700 Corrective action the auditee plans to take in response to the finding: Pasco School District concurs with the audit finding. The District has evaluated the circumstances surrounding this issue and determined that the root cause was a lack of specific procedural controls and staff training related to cooperative (“piggyback”) procurement requirements, particularly regarding vendor regional assignments under Department of Enterprise Services (DES) contracts. As noted in the audit, staff were not aware that contractors were assigned to specific geographic regions, which resulted in the selection of a vendor outside the District’s designated region. The District recognizes that the selected vendor in question was local to the District, and following the DES contract requires the District to instead order from a Spokane company, which is 2-3 hours away. The District places a strong emphasis on supporting local businesses as part of its commitment to the community, and this priority was a contributing factor in procurement decisions in this instance. However, the District recognizes that all procurement activities involving federal funds must strictly adhere to applicable federal, state, and contract requirements. Upon discovery of the issue during the audit process, Nutrition Services immediately initiated corrective action. The department transitioned to the appropriately assigned vendor, and within a short timeframe completed all necessary onboarding, ordering, and delivery processes. Procurement activities are now aligned with DES contract requirements. Additionally, while the District had been utilizing a vendor outside of the assigned DES contract region for these purchases, that vendor is an approved provider under the Office of Superintendent of Public Instruction’s Department of Defense (DoD) Fresh Produce Program. The District will continue to utilize that vendor when procuring produce through DoD-funded programs, where appropriate. To prevent recurrence, the District will implement the following corrective actions: 1. Staff Training and Capacity Building Provide training on federal procurement requirements and DES contracts Reinforce that local preference cannot override compliance requirements 2. Ongoing Monitoring and Internal Controls Conduct periodic internal reviews of procurement activity Perform documentation audits and provide corrective feedback 3. Coordination with DES and OSPI Guidance Require staff to reference DES and OSPI guidance when utilizing cooperative contracts Through these actions, the District will strengthen internal controls and ensure compliance with federal procurement requirements moving forward. Anticipated date to complete the corrective action: June 30, 2026

View Audit 402145

Finding 1215478 (2025-001)

Material Weakness 2025

First Rising Mt. Zion Baptist Church Housing Corp.

DC

HUD Housing Programs Cash Management Significant Deficiency

Recommendation: We recommend that First Rising Mount Zion Baptist Church Housing Corporation, Inc. design and implement controls to prevent non-compliance with HUD requirements surrounding surplus cash deposits such as recalculating surplus cash at the end of the year after all transactions have bee...

Recommendation: We recommend that First Rising Mount Zion Baptist Church Housing Corporation, Inc. design and implement controls to prevent non-compliance with HUD requirements surrounding surplus cash deposits such as recalculating surplus cash at the end of the year after all transactions have been posted. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: First Rising Mount Zion Baptist Church Housing Corporation, Inc. T/A Gibson Plaza Apartments will implement enhanced internal controls to ensure compliance with HUD requirements related to surplus cash calculations and deposits. Specifically: - Management will perform a final recalculation of surplus cash at year-end after all accounting transactions have been recorded and reviewed. - A standardized checklist will be developed and utilized to ensure that all required steps in the surplus cash calculation process are completed accurately. - The surplus cash calculation will be reviewed and approved by a secondary individual independent of the preparer to ensure accuracy and compliance. Name(s) of the contact person(s) responsible for corrective action: Asa Ewings Planned completion date for corrective action plan: 5/31/2026

View Audit 402124

Finding 1215475 (2025-001)

Material Weakness 2025

Tufts Medical Center Inc. and Affiliates

MA

Eligibility Student Financial Aid Reporting

RE: Funding 2025-001 – Incorrect student status, Corrective Action Plan To whom it may concern: Student Financial Assistance Cluster (ALNs: 84.063 and 84.268) Management concurs with the findings. Management acknowledges that the condition identified is primarily attributable to staff turnover assoc...

RE: Funding 2025-001 – Incorrect student status, Corrective Action Plan To whom it may concern: Student Financial Assistance Cluster (ALNs: 84.063 and 84.268) Management concurs with the findings. Management acknowledges that the condition identified is primarily attributable to staff turnover associated with the closure of the school, which resulted in disruptions to established processes and reduced the effectiveness of controls over the determination and documentation of student eligibility. Management has ensured the appropriate reporting has now been made to the NSLDS. The SFA program has been terminated and therefore will not impact future audits. Leadership Responsible: Colleen Walsh Dean, Student and Alumni Services Lawrence Memorial/Regis College (781) 979-3000 Anticipated Completion date: May 30, 2026

View Audit 402115

Finding 1215473 (2025-002)

Material Weakness 2025

HEARTLAND ALLIANCE HEALTH AND SUBSIDIARY

IL

Procurement, Suspension & Debarment § 200.318

Federal Procurement Regulations Planned Corrective Action: During the audit period, HAH experienced significant organizational transition, including separation from its parent organization, turnover in key administrative and finance positions, and the rebuilding of internal financial operations and ...

Federal Procurement Regulations Planned Corrective Action: During the audit period, HAH experienced significant organizational transition, including separation from its parent organization, turnover in key administrative and finance positions, and the rebuilding of internal financial operations and controls. These circumstances contributed to inconsistent application and documentation of procurement procedures. To address this deficiency and prevent recurrence, HAH worked with HRSA Technical Assistance resources to develop an enhanced procurement policy and procedure, which is scheduled for Board approval in May 2026. In the interim, HAH has reinforced procurement requirements through staff training and communication regarding federal procurement standards. Additionally,management has implemented ongoing monitoring and compliance reviews of procurement activities to ensure adherence to policy requirements, including appropriate bid documentation and sole source justification when applicable Person Responsible for Corrective Action Plan: Donald McGruder, CFO Anticipated Date of Completion: Resolved

View Audit 402113

Finding 1215471 (2025-002)

Material Weakness 2025

Community Council of Idaho, Inc.

ID

Equipment & Real Property Management HUD Housing Programs Material Weakness § 200.302 § 200.512

Management’s Response Community Council of Idaho, Inc. acknowledges the finding related to untimely reconciliations, material audit adjustments, and delayed financial statement issuance. Management agrees that improvements are necessary to strengthen internal controls over financial reporting, ensur...

Management’s Response Community Council of Idaho, Inc. acknowledges the finding related to untimely reconciliations, material audit adjustments, and delayed financial statement issuance. Management agrees that improvements are necessary to strengthen internal controls over financial reporting, ensure timely account reconciliations, and improve the overall financial close and audit preparation process. Management recognizes that turnover within the business office during the audit year significantly impacted continuity, institutional knowledge, and the timely completion of reconciliations and closing procedures. Subsequent to year end, management has initiated corrective actions designed to improve financial reporting accuracy, accountability, and timeliness. Corrective Actions to Be Implemented 1. Implementation of Formal Monthly Closing Procedures Management will implement a standardized monthly financial close process with defined timelines, responsibilities, and review procedures. The monthly close process will include: Completion of all balance sheet reconciliations, Review of grant and contract revenue accounts, Review of property and equipment activity, Reconciliation of debt schedules, Reconciliation of pharmaceutical inventory balances, Recording of depreciation and interest expense, and Verification that all material journal entries are posted timely. A monthly close checklist will be developed and maintained to ensure consistency and accountability. 2. Timely Reconciliation of Grant and Contract Accounts Management will strengthen procedures surrounding grant and contract accounting to ensure receivables and revenue are reconciled monthly and supported by appropriate documentation. Actions include: Reconciling grant receivable balances to supporting reimbursement requests and funding agency records, Reviewing deferred revenue and earned revenue calculations monthly, Investigating and resolving variances timely, and Implementing supervisory review of grant reconciliations. 3. Enhanced Review and Oversight Controls Management will implement additional review controls over financial reporting and account reconciliations. These controls will include: Documented supervisory review and approval of reconciliations, Review of significant or unusual journal entries, Periodic review of financial statements and supporting schedules by senior finance leadership, and Earlier audit preparation and interim review procedures to identify issues prior to year end. 4. Strengthening Staffing and Organizational Structure Management and executive leadership have evaluated the operational needs of the business office and have taken steps to improve staffing stability and oversight capacity. Actions include: Clarifying accounting roles and responsibilities, Enhancing cross-training within the finance department, Providing additional training related to grant accounting and reconciliations, Utilizing external resources or consultants, as needed, to support complex accounting areas and transition periods. 5. Improvement of Clinic Reporting Processes Management will continue evaluating clinic reporting systems and procedures to ensure operational growth is adequately supported by accounting and financial reporting processes. This includes: Improving coordination between clinic operations and accounting, Standardizing reporting procedures, Evaluating system-generated reports for accuracy and completeness, and Implementing additional reconciliation and review controls related to clinic financial activity. 6. Audit Readiness and Timeliness Improvements Management will establish an audit preparation timeline with interim deadlines to support timely completion of the annual audit and compliance with federal reporting deadlines. The organization will: Prepare schedules and reconciliations in advance of audit fieldwork, Conduct periodic internal reviews of audit support documentation, Improve coordination with external auditors throughout the year, and Monitor progress toward required reporting deadlines. Contact Person Responsible for Corrective Action: Implementation oversight will be shared among executive leadership, finance management, program leadership, and those charged with governance. Anticipated Completion Date: Corrective actions began subsequent to year end and are expected to be substantially implemented during fiscal year 2026, with ongoing monitoring and refinement thereafter.

View Audit 402110

Finding 1215470 (2025-005)

Material Weakness 2025

TOWN OF CRAMERTON

NC

Cash Management Significant Deficiency § 200.305

Significant Deficiency, Nonmaterial Non-Compliance Finding 2025-005: Name of Contact Person: Bill Bradley The Town did not have a system of internal controls in place to ensure cash management compliance requirements were met. Auditor’s review indicated that a reimbursement request #4 was drawn and ...

Significant Deficiency, Nonmaterial Non-Compliance Finding 2025-005: Name of Contact Person: Bill Bradley The Town did not have a system of internal controls in place to ensure cash management compliance requirements were met. Auditor’s review indicated that a reimbursement request #4 was drawn and received in August yet the Town did not disburse the funds, until September. Therefore, the monies were not paid to the vendor within the three (3) day required compliance period. Corrective Action: With the new Town Manager and Finance Director the Town fully expects to comply with the three (3) day compliance requirement Proposed Completion Date: Immediately.

View Audit 402108

Finding 1215469 (2025-004)

Material Weakness 2025

Warren County Housing Authority

IA

Internal Control / Segregation of Duties

The corrective action plan was documented in our response to the auditor's comment. See the Schedule of Findings and Questioned costs.

View Audit 402106

Corrective Action Plans

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