Corrective Action Plans

Finding 1218301 (2025-002)

Material Weakness 2025

KY

Recommendation: KRM should have future audits completed and filed timely with the Federal Audit Clearinghouse. Action Taken: KRM continues to take steps to increase efficiencies within the finance department and due to the decrease in the number of refugees served the finance department is on schedu...

Recommendation: KRM should have future audits completed and filed timely with the Federal Audit Clearinghouse. Action Taken: KRM continues to take steps to increase efficiencies within the finance department and due to the decrease in the number of refugees served the finance department is on schedule to have the September 30, 2025 audit completed and filed timely.

View Audit 404545

Finding 1218296 (2025-001)

Material Weakness 2025

Miami-Dade Aviation Department

FL

HUD Housing Programs Internal Control / Segregation of Duties Special Tests & Provisions

Action Taken: The Department has taken immediate corrective action to address the deficiencies identified in the files audited. All noted discrepancies are being reviewed and are in the process of being corrected, and revised Form HUD-50058 submissions will be completed and transmitted, where requir...

Action Taken: The Department has taken immediate corrective action to address the deficiencies identified in the files audited. All noted discrepancies are being reviewed and are in the process of being corrected, and revised Form HUD-50058 submissions will be completed and transmitted, where required. The Department maintains established procedures, systems, and internal controls designed to support compliance with applicable HUD requirements. To further strengthen these controls, enhancements are currently underway to improve the timeliness of processing activities, ensure accurate and thorough income verification, and enforce proper application of abatements. Additionally, the Department is implementing more robust quality control (QC) measures to verify that all required documentation is consistently obtained, reviewed, and retained. To reinforce oversight, the Department is expanding its existing QC and Housing and Community Development (HCD) review processes. This includes the implementation of a front-line supervisory review of a representative sample of recertifications prior to the submission of Form HUD-50058. This added layer of review is intended to proactively identify and correct potential errors, ensuring accuracy, completeness, and full regulatory compliance. If the Department of Housing and Urban Development has questions regarding this plan, please call Nathan Kogon, Director at (786) 469-4120. The process to start correcting the issue discussed above is currently underway, and significant progress is expected for the next fiscal year end audit.

View Audit 404539

Finding 1218293 (2025-005)

Material Weakness 2025

Resilience: Advocates for Ending Violence

MI

Internal Control / Segregation of Duties Questioned Costs Subrecipient Monitoring

Finding 2025-005: Crime Victim Assistance Documented Review and Approval Procedures Type of Finding: Control U.S. Department of Justice Pass-through Entity: Michigan Department of Health and Human Services Assistance Listing Number: 16.575 Award Numbers: E20253442-00, E20252994-00, E20254307-00, and...

Finding 2025-005: Crime Victim Assistance Documented Review and Approval Procedures Type of Finding: Control U.S. Department of Justice Pass-through Entity: Michigan Department of Health and Human Services Assistance Listing Number: 16.575 Award Numbers: E20253442-00, E20252994-00, E20254307-00, and E20252103-00 Award Year End: September 30, 2025 Recommendation: The Organization should expand its financial reporting review procedures to require the documented review and approval of all performance reports by an individual with adequate skills, knowledge, and experience prior to submission. Action Taken: During the fiscal year, the Organization properly implemented procedures that require the documented review of the monthly financial reports, including the corresponding indirect cost calculations. The Organization will expand these policies and procedures to require the documented review and approval of all performance reports on a monthly basis prior to submission with documented approval. Responsible Person and Anticipated Completion Date: The Executive Director will oversee the implementation of this plan by June 30, 2026. If the U.S. Department of Justice has questions regarding this plan, please call Megan Hennessey at (616) 494-1724.

View Audit 404531

Finding 1218292 (2025-004)

Material Weakness 2025

Resilience: Advocates for Ending Violence

MI

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles

Finding 2025-004: MATERIAL WEAKNESS—Uniform Guidance Written Internal Control Procedures Type of Finding: Control U.S. Department of Justice Pass-through Entity: Michigan Department of Health and Human Services Assistance Listing Number: 16.575 Award Numbers: E20253442-00, E20252994-00, E20254307-00...

Finding 2025-004: MATERIAL WEAKNESS—Uniform Guidance Written Internal Control Procedures Type of Finding: Control U.S. Department of Justice Pass-through Entity: Michigan Department of Health and Human Services Assistance Listing Number: 16.575 Award Numbers: E20253442-00, E20252994-00, E20254307-00, and E20252103-00 Award Year End: September 30, 2025 Recommendation: The Organization should establish and maintain written internal control procedures that cover the required five components of internal control for each area of compliance for each of its federal programs. The Organization should educate all employees working with federal programs of the Organization’s procedures and monitor compliance with them. Action Taken: The Organization will establish the necessary policies and procedures for managing its federal awards in compliance with federal requirements. Responsible Person and Anticipated Completion Date: The Executive Director will oversee the implementation of this plan by June 30, 2026. If the U.S. Department of Justice has questions regarding this plan, please call Megan Hennessey at (616) 494-1724.

View Audit 404531

Finding 1218272 (2025-006)

Material Weakness 2025

TOWN OF HOPKINTON

RI

Allowable Costs / Cost Principles Questioned Costs Cash Management

Corrective Action: All vouchers require Town Manager and Finance Director to approve and sign all vouchers prior to payment. Efforts are in place to make this a high priority even in busy times. The number of transactions processed greatly increased relative to Federal dollars, but the Town is commi...

Corrective Action: All vouchers require Town Manager and Finance Director to approve and sign all vouchers prior to payment. Efforts are in place to make this a high priority even in busy times. The number of transactions processed greatly increased relative to Federal dollars, but the Town is committed to internal controls. Anticipated Completion Date: Immediately Contact Person: Elizabeth Draper and Brian Rosso

View Audit 404527

Finding 1218269 (2025-005)

Material Weakness 2025

TOWN OF HOPKINTON

RI

Questioned Costs Reporting

Corrective Action: Future reports relative to Federal agencies will rely solely upon general ledger details at the time of the reporting. Effort will be made to be as inclusive as possible. Anticipated Completion Date: Next reporting period Contact Person: Elizabeth Draper

View Audit 404527

Finding 1218268 (2025-004)

Material Weakness 2025

TOWN OF HOPKINTON

RI

Procurement, Suspension & Debarment

Corrective Action: For all future RFP's utilizing Federal funds, the town will include a certification form in the RFP for bidders to provide proof of suspension or disbarment. It will be required with bid submittals, or bids will not be considered. Proof of active UEI needs to be sought from Sam.go...

Corrective Action: For all future RFP's utilizing Federal funds, the town will include a certification form in the RFP for bidders to provide proof of suspension or disbarment. It will be required with bid submittals, or bids will not be considered. Proof of active UEI needs to be sought from Sam.gov or vendor prior to awarding bids or received within 10-day grace period of bid packet receipt. Anticipated Completion Date: Immediately Contact Person: Brian Rosso, Procurement Office

View Audit 404527

Finding 1218265 (2025-003)

Material Weakness 2025

Five-Town Health Alliance, Inc. D/b/a Mountain Health Center

VT

Procurement, Suspension & Debarment § 200.214

Condition Found: The Organization did not have adequately designed internal controls to ensure compliance with Federal suspension and debarment requirements. Specifically, the Organization did not perform SAM.gov exclusion screenings for all employees and contractors. SAM.gov checks were performed o...

Condition Found: The Organization did not have adequately designed internal controls to ensure compliance with Federal suspension and debarment requirements. Specifically, the Organization did not perform SAM.gov exclusion screenings for all employees and contractors. SAM.gov checks were performed only for certain clinical providers and were aligned with the Organization’s credentialing cycle (approximately every two years), rather than being performed for all applicable individuals upon hire and/or on a recurring basis. As a result, the Organization’s exclusion screening process was not consistently applied to all individuals whose compensation is charged, in whole or in part, to Federal awards. Individual(s) Responsible for Corrective Action: Heidi Melbostad, Chief Executive Officer and Compliance Officer (process design and oversight). Nancy Kusner, Human Resources Director (screening execution and documentation). Planned Corrective Action: This finding has been remediated. The Organization has implemented exclusion screening covering all employees, contractors, and Board members whose compensation may be charged, in whole or in part, to Federal awards. Screening is performed against both the SAM.gov Exclusions List and the Office of Inspector General List of Excluded Individuals and Entities (LEIE) at the time of hire or engagement and on a recurring monthly basis. The Organization built this control in phases, conducting screening runs on 2026-04-22 and 2026-05-09 as it expanded coverage and refined the process, and completing its first comprehensive entity-wide screening, covering all current staff and Board members and including review of known names and aliases against the current roster, on 2026-06-01, with all individuals returning clear results. The Organization retains documented evidence of each screening, including the roster comparison and alias check, to support compliance with 2 CFR 200.214. Management is finalizing a written protocol documenting these steps to ensure the control is sustained. Anticipated Completion Date: Control built in phases over April and May 2026 (screening runs 2026-04-22 and 2026-05-09); first comprehensive entity-wide screening completed 2026-06-01, all results clear. SAM.gov and LEIE screening of all staff, contractors, and Board members continues on a recurring monthly basis. Written protocol documenting the control to be finalized by 2026-06-30.

View Audit 404523

Finding 1218262 (2025-002)

Material Weakness 2025

Five-Town Health Alliance, Inc. D/b/a Mountain Health Center

VT

Internal Control / Segregation of Duties Special Tests & Provisions Questioned Costs

Condition Found: Through testing a statistically valid sample of 25 individual patient balances, we noted four instances in which the sliding fee discount applied was inconsistent with the Organization’s policy. Three patients did not receive the appropriate discount and one patient received a disco...

Condition Found: Through testing a statistically valid sample of 25 individual patient balances, we noted four instances in which the sliding fee discount applied was inconsistent with the Organization’s policy. Three patients did not receive the appropriate discount and one patient received a discount but did not have an active sliding fee application for the service date the sliding fee discount was applied. Individual(s) Responsible for Corrective Action: Lori Slicer, Revenue Cycle Manager (organization-wide sliding fee discount monitoring procedure across the medical and dental service lines). Crystal Kinsman, Dental Practice Manager (dental-specific monitoring, with increased sampling of the Dental system given its higher level of manual processing). Heidi Melbostad, Chief Executive Officer and Compliance Officer (sliding fee discount schedule redesign and oversight). Planned Corrective Action: Management is addressing this finding through both an immediate interim action and a comprehensive redesign, together with an ongoing monitoring control. Interim action (completed): the Board approved revised nominal fee levels on 2026-04-27, effective 2026-04-28, establishing Category A as the most favorable discount category, consistent with Section 330(k)(3)(G) of the Public Health Service Act. Full corrective action: management will complete a comprehensive redesign of the Sliding Fee Discount Program, including separate schedules for the medical and dental service lines, data-driven evaluation of tier thresholds and fee levels, and replacement of the percentage-based payment option with a clearer flat-fee structure, for Board review and approval. Ongoing monitoring control: management will establish a documented monitoring procedure over sliding fee discount application across both the medical and dental service lines, including a defined monthly sample drawn from each service line with increased sampling of the Dental system given its higher level of manual processing, verification that an active sliding fee application is on file for each service date, documented review results, timely correction of identified errors, and supervisory sign-off, with error rates reviewed at least quarterly. Anticipated Completion Date: Interim nominal fee revision effective 2026-04-28 (completed). Comprehensive Sliding Fee Discount Program redesign and ongoing monitoring procedure to be Board-approved and operational by 2026-08-24.

View Audit 404523

Finding 1218250 (2025-002)

Material Weakness 2025

SOUTH FEATHER WATER AND POWER AGENCY

CA

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.317 § 200.318 § 200.320

Finding 2025-002 – Significant Deficiency Award No.: 21.027 Federal Grantor: U.S. Department of Treasury, Passed-through the County of Butte, Pass-through Grantor’s Number X25534. Compliance Requirement: Procurement, Suspension and Debarment. Condition: The Agency’s procurement policy does not adequ...

Finding 2025-002 – Significant Deficiency Award No.: 21.027 Federal Grantor: U.S. Department of Treasury, Passed-through the County of Butte, Pass-through Grantor’s Number X25534. Compliance Requirement: Procurement, Suspension and Debarment. Condition: The Agency’s procurement policy does not adequately document procurement requirements under the Uniform Guidance or contract provisions under Appendix II to Part 200 of the Uniform Guidance. Criteria: Uniform Guidance, Section 200.318(a) indicates “the recipient or subrecipient must maintain and use documenting procedures for procurement transactions under a Federal award or subaward, including for acquisition of property or services. These documented procurement procedures must be consistent with State, local, and tribal laws and regulations and the standards identified in §§ 200.317 through 200.327”. Required contracting provisions are documented in Appendix II to Part 200 – Contract Provisions for Non-federal Entity Contracts Under Federal Awards. Cause: The Agency’s procurement policy needs to be updated to document the requirements of the Uniform Guidance. Effect: The Agency’s procurement policy does not comply with the requirements of the Uniform Guidance, which could result in procurements that do not comply with the Uniform Guidance and the awarding agency disallowing the federal award and requesting the return of the award. Context: The Agency’s procurement policy complies with many requirements of the Uniform Guidance, but the policy does not comply with certain required provisions, including the thresholds for micro purchases, simplified acquisition threshold and full public procurements and the requirements for sole sourcing procurements under section 200.320. The procurements tested were found to comply with procurement requirements under Uniform Guidance even though the policy did not include all of the required provisions. Recommendation: The Agency should update its procurement policy to reference Uniform Guidance §§ 200.317 through 200.327 and should reference contracting provisions under Appendix II to Part 200 to be in compliance with Uniform Guidance prior to procurements being made under future federal awards. Views of Responsible Officials and Planned Corrective Actions: The procurement policy will be updated to include procurement guidance under Uniform Guidance §§ 200.317 through 200.327 and contracting provisions under Appendix II to Part 200 – Contract Provisions for Non-federal Entity Contracts Under Federal Awards. Title of Responsible Party: Finance Manager Implementation Date: By September 22, 2026

View Audit 404498

Finding 1218248 (2025-001)

Material Weakness 2025

Valorus

CA

Reporting Internal Control / Segregation of Duties § 200.510

Finding 2025-001 – Accuracy of Schedule of Expenditures of Federal Awards (SEFA) The ALN numbers identified as incorrect were on 16.588 & 16.575 under the Violence Against Women Formula Grant. These two numbers were inadvertently transposed during preparation of the SEFA. Out of the 20 ALN numbers r...

Finding 2025-001 – Accuracy of Schedule of Expenditures of Federal Awards (SEFA) The ALN numbers identified as incorrect were on 16.588 & 16.575 under the Violence Against Women Formula Grant. These two numbers were inadvertently transposed during preparation of the SEFA. Out of the 20 ALN numbers reported, only these two were inaccurate. All expenditures reported on the SEFA were based on actual expenditures incurred consistent with prior guidance provided by the auditor. During the previous audit cycle, VALOR’s accountant sought clarification regarding whether expenditures should be reported based on actual expenditures or reimbursement amounts and was instructed to use actual expenditures incurred. In accordance with 2 CFR 200.510(b), auditees must prepare a SEFA that accurately identifies programs by the correct ALN and reports expenditures based on actual amounts expended from federal awards. Except for the inadvertent transposition of the two ALN numbers noted above, the SEFA was prepared in compliance with these requirements. As a corrective action, beginning with the next SEFA report for the 2025-2026 fiscal year, the SEFA will be prepared by the Senior Accountant, Karen Sayers, and reviewed by both the Director of Operations, Rosemary Gonzales, and the organization’s CPA, Kim Jones, prior to submission to verify the accuracy of all ALN numbers and reported amounts.

View Audit 404493

Finding 1218247 (2025-002)

Material Weakness 2025

Valorus

CA

Subrecipient Monitoring § 200.332 § 200.510

Finding 2025-002 – Incomplete Subrecipient Agreements and Inaccurate Subrecipient SEFA Reporting Subrecipient agreements were executed based on California’s State Administrator of federal funds (CalOES) requirements applicable to second-tier subawards. Based on guidance provided during Federal Grant...

Finding 2025-002 – Incomplete Subrecipient Agreements and Inaccurate Subrecipient SEFA Reporting Subrecipient agreements were executed based on California’s State Administrator of federal funds (CalOES) requirements applicable to second-tier subawards. Based on guidance provided during Federal Grants Advanced Training and the 2025 CalOES Subrecipient Handbook (page 65), entities receiving pass-through funding from the state are required to follow CalOES second-tier subaward requirements. Accordingly, VALOR’s agreements include the elements required for second-tier subawards. Elements of a Second-Tier Subaward (From the 2025 CalOES Subrecipient Handbook) The following elements must be included in a Second-Tier Subaward: • Name of the Subrecipient Organization and the participating agency/organization, • The titles and contact information for the individuals that will serve as the primary contacts,• The timeframe of the agreement (this must cover the Grant Subaward performance period), • The roles and responsibilities (as they relate to the specific Grant Subaward) of the Subrecipient Organization and the participating agency/organization, • Specific information concerning all non-fiscal resources shared between the Subrecipient Organization and the participating agency/organization, • Reporting requirements necessary for the Subrecipient Organization to meet Cal OES reporting requirements, • Signatures of the chief executive or designee of the Subrecipient Organization and the participating agency/organization, including the dates of those signatures, and • Specific information concerning the transfer of any Grant Subaward funds from the Subrecipient Organization to the participating agency/organization. At a minimum, this information must include the total amount of Grant Subaward funds that will be transferred, the process for transferring the Grant Subaward funds (e.g., monthly invoices, payment based on deliverables), what the Grant Subaward funds will be used for, and any match contribution provided by the participating agency/organization. Any funds included in the Second-Tier Subaward must be clearly designated (not itemized) in the Grant Subaward Budget Pages (Cal OES Form 2-106a or b). Additionally, second tier subrecipients are prohibited from charging indirect costs; therefore, indirect cost provisions were not included in the agreements. Based on the above, management believes the subrecipient agreements substantially complied with applicable CalOES requirements. Any omissions identified were administrative in nature and did not impact program performance, allowability of costs, or oversight of subrecipient activities. To strengthen internal controls and ensure full compliance with all applicable grant requirements, beginning January 1, 2027, VALOR’s Director of Operations, Rosemary Gonzales, will include all required elements identified in the finding in future subrecipient agreements. In addition, VALOR will review subrecipient Single Audit reports to verify that applicable grant funding is properly reported on the SEFA. VALOR will also notify subrecipients of the requirement to include these amounts in their future SEFA reporting. Contracts for the current year, 2026, have already been signed.

View Audit 404493

Finding 1218246 (2025-003)

Material Weakness 2025

Partnership for the Umpqua Rivers

OR

Procurement, Suspension & Debarment § 200.317 § 200.327

Finding 2025-003: Inadequate Procurement Documentation Management’s response: Concur Responsible individual: Finance Manager, Executive Director, Board of Directors Anticipated completion date: March 31, 2026 Management agrees with this finding and will implement the following: • Update procurement ...

Finding 2025-003: Inadequate Procurement Documentation Management’s response: Concur Responsible individual: Finance Manager, Executive Director, Board of Directors Anticipated completion date: March 31, 2026 Management agrees with this finding and will implement the following: • Update procurement policies and procedures to align with 2 CFR 200, including: o Develop and implement standardized procurement checklists o Require cost/price analysis for all qualified transactions o Require suspension/debarment checks for all qualified transactions o Require supervisory review and oversight by Board of Directors o Require adherence to document retention and destruction policy

View Audit 404490

Finding 1218245 (2025-002)

Material Weakness 2025

Partnership for the Umpqua Rivers

OR

Procurement, Suspension & Debarment

Finding 2025-002: Material Weaknesses in Internal Control Management’s response: Concur Responsible individual: Finance Manager, Executive Director, Board of Directors Anticipated completion date: March 31, 2026 Management agrees with this finding and will implement the following: • Develop and impl...

Finding 2025-002: Material Weaknesses in Internal Control Management’s response: Concur Responsible individual: Finance Manager, Executive Director, Board of Directors Anticipated completion date: March 31, 2026 Management agrees with this finding and will implement the following: • Develop and implement a formal document retention and destruction policy • Develop and implement a formal periodic close and invoicing policy • Develop and implement a formal conflict of interest policy • Develop and implement a formal internal control policy • Develop and implement a formal whistleblower policy • Develop and implement a formal Board code of ethics policy • Develop and implement a formal reporting schedule • Actively recruit Directors with financial experience to participate in Board oversight

View Audit 404490

Finding 1218244 (2025-001)

Material Weakness 2025

Partnership for the Umpqua Rivers

OR

Procurement, Suspension & Debarment Subrecipient Monitoring

Finding 2025-001: Material Weaknesses in Internal Control Management’s response: Concur Responsible individual: Finance Manager, Executive Director, Board of Directors Anticipated completion date: March 31, 2026 Management agrees with this finding and will implement the following: • Develop and impl...

Finding 2025-001: Material Weaknesses in Internal Control Management’s response: Concur Responsible individual: Finance Manager, Executive Director, Board of Directors Anticipated completion date: March 31, 2026 Management agrees with this finding and will implement the following: • Develop and implement a formal document retention and destruction policy • Develop and implement a formal periodic close and invoicing policy • Develop and implement a formal conflict of interest policy • Develop and implement a formal internal control policy • Develop and implement a formal whistleblower policy • Develop and implement a formal Board code of ethics policy • Develop and implement a formal reporting schedule • Actively recruit Directors with financial experience to participate in Board oversight

View Audit 404490

Finding 1218216 (2025-002)

Material Weakness 2025

Town of Castle Rock, Colorado

CO

Reporting Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303 § 200.328 § 200.329

Finding 2025-002 Federal Agency Name: U.S. Department of Treasury Program Name: Coronavirus State and Local Fiscal Recovery Funds FFALN # 21.027 Finding Summary: Eide Bailly LLP prepared our single audit for Federal Coronavirus State and Local Fiscal Recovery Funds where the Town is a subrecipient t...

Finding 2025-002 Federal Agency Name: U.S. Department of Treasury Program Name: Coronavirus State and Local Fiscal Recovery Funds FFALN # 21.027 Finding Summary: Eide Bailly LLP prepared our single audit for Federal Coronavirus State and Local Fiscal Recovery Funds where the Town is a subrecipient to Douglas County who is the recipient of the funds. Eide Bailly LLP identified that the Town did not have documented or consistently applied internal controls to ensure compliance with the County’s subrecipient guidance requiring the submission of formal special reports for ALN 21.027. Responsible Individuals: Mark Henderson, Assistant Director of Castle Rock Water Corrective Action Plan: Staff will complete quarterly reports including project progress and estimated project infrastructure costs. The reports will be reviewed by management prior to submission to the recipient of the Federal Funds (Douglas County). Anticipated Completion Date: Ongoing during the period that the Town is a subrecipient of these funds for the project.

View Audit 404489

Finding 1218215 (2025-004)

Material Weakness 2025

New Phoenix Park I LLC

CA

HUD Housing Programs Questioned Costs Eligibility

Finding 2025-004: Eligibility- Inconsistent Tenant Rent Across Documentation Type: Significant Deficiency Condition: During testing of tenant files, two instances where the tenant rent on the rent roll/rent change notice (Subsidy Adjustment Notice) did not agree to the tenant rent on the Tenant Inco...

Finding 2025-004: Eligibility- Inconsistent Tenant Rent Across Documentation Type: Significant Deficiency Condition: During testing of tenant files, two instances where the tenant rent on the rent roll/rent change notice (Subsidy Adjustment Notice) did not agree to the tenant rent on the Tenant Income Certification. Management agrees with the finding. Management will implement a secondary review process to reconcile tenant rent amounts across all documentation before finalizing rent changes or submitting files to the PHA. A. Management will coordinate with Compliance Manager to establish a review process to ensure tenant rent amounts are reconciled and consistent across the TIC, rent roll, and all subsidy adjustment notices prior to submission to the public housing authority. Contact for Corrective Action: Cornelia Reith anticipated Completion date:12/31/26

View Audit 404487

Finding 1218214 (2025-003)

Material Weakness 2025

New Phoenix Park I LLC

CA

HUD Housing Programs

Finding 2025-003: Eligibility – Utility Allowance Not in Agreement with UA Schedule Type: Significant Deficiency Condition: During testing of tenant files, the auditor noted one instance where the utility allowance recorded on the Tenant Income Certification (TIC) form did not agree with the approve...

Finding 2025-003: Eligibility – Utility Allowance Not in Agreement with UA Schedule Type: Significant Deficiency Condition: During testing of tenant files, the auditor noted one instance where the utility allowance recorded on the Tenant Income Certification (TIC) form did not agree with the approved Utility Allowance Schedule. Management agrees with the finding and with the auditor’s recommendation. Management will establish and implement a formal review process to ensure tenant rent calculations are accurate and consistent across all documentation, including the TIC, rent roll, and subsidy adjustment notices, prior to submission to the Public Housing Authority. A. Management will coordinate with Corporate Compliance to perform a comprehensive review of utility allowance schedules at the property. B. The Compliance Manager, in collaboration with Corporate Compliance, will implement review procedures to ensure that all utility allowances in tenant files match the approved schedules before submission. Contact for Corrective Action: Cornelia Reith anticipated Completion date:12/31/26

View Audit 404487

Finding 1218213 (2025-002)

Material Weakness 2025

New Phoenix Park I LLC

CA

HUD Housing Programs Internal Control / Segregation of Duties Questioned Costs

Finding 2025-002: Eligibility – Untimely Recertifications Type: Significant Deficiency Condition: During testing of tenant files, the auditor identified fourteen instances in which 2025 annual recertifications were not completed in a timely manner. Recertifications were performed in the subsequent y...

Finding 2025-002: Eligibility – Untimely Recertifications Type: Significant Deficiency Condition: During testing of tenant files, the auditor identified fourteen instances in which 2025 annual recertifications were not completed in a timely manner. Recertifications were performed in the subsequent year, and effective dates were backdated to reflect the current year. Management agrees with the finding and acknowledges the need to strengthen internal controls over tenant file compliance. To address this issue, management will implement a formalized tracking system for annual recertifications to ensure they are completed timely with accurate effective dates. Additionally, supervisory review and approval procedures will be enhanced prior to finalizing tenant rent changes. A. The Compliance Manager will oversee the compliance department and ensure staff complete recertifications prior to required effective dates. B. The Property Manager will conduct weekly meetings with staff to review upcoming recertifications and monitor progress to ensure timeliness. C. Management is in the process of hiring additional staff dedicated to processing recertifications to improve timeliness and compliance. Contact for Corrective Action: Cornelia Reith anticipated Completion date:12/31/26

View Audit 404487

Finding 1218212 (2025-005)

Material Weakness 2025

J Sterling Morton High School District No. 201

IL

Questioned Costs Procurement, Suspension & Debarment School Nutrition Programs

Finding No.: 2025-005 Condition: The District did not maintain sufficient records to detail the history of procurement. The organization did not ensure that vendors complied with all contract terms, conditions and specifications. Plan: The district is currently running a Food Service Management Comp...

Finding No.: 2025-005 Condition: The District did not maintain sufficient records to detail the history of procurement. The organization did not ensure that vendors complied with all contract terms, conditions and specifications. Plan: The district is currently running a Food Service Management Company bid that complies with the state’s procurement. Anticipated Date of Completion: August 1, 2026 Name of Contact Person: Nicholas Valderas, Business Manager Management Response: See plan above

View Audit 404465

Finding 1218205 (2025-001)

Material Weakness 2025

Grameen Foundation

DC

Reporting Significant Deficiency § 200.512

View of Responsible Officials: Management carried out an after-action review to identify root cause of delays in completing the 2024 audit and timely filing of the single audit report packet. We implemented strict timeline in completing the 2024 year-end financial closing process and accounts reconc...

View of Responsible Officials: Management carried out an after-action review to identify root cause of delays in completing the 2024 audit and timely filing of the single audit report packet. We implemented strict timeline in completing the 2024 year-end financial closing process and accounts reconciliation. An overall Audit Coordinator was appointed and worked closely with the business process leads while Regional and Country Managers helped ensure completion of the 2024 field offices and affiliates audit reports prior to start of the global audit fieldwork. While timely submission of the 2024 Single Audit package remained a high priority, staff bandwidth constraints required additional time to ensure all audit requests were thoroughly supported and addressed. Management is continuing to strengthen processes and coordination mechanisms to improve timeliness going forward, including better workload planning, earlier engagement with key stakeholders, and ongoing monitoring of audit readiness milestones.

View Audit 404458

Finding 1218202 (2025-001)

Material Weakness 2025

Kennebec Montessori School

ME

Internal Control / Segregation of Duties Matching / Level of Effort / Earmarking

Management has established processes and procedures for documenting approvals for ACH transactions.

View Audit 404450

Finding 1218191 (2025-003)

Material Weakness 2025

La Familia Medical Center

NM

Internal Control / Segregation of Duties Questioned Costs Subrecipient Monitoring

Federal Program: Consolidated Health Centers Grant Assistance Listing No. 93.224 & 93.527 Recommendation: Our auditors recommend the Organization to review internal controls in regards to the determination, recording, and monitoring of the sliding fee process to ensure that appropriate sliding fee r...

Federal Program: Consolidated Health Centers Grant Assistance Listing No. 93.224 & 93.527 Recommendation: Our auditors recommend the Organization to review internal controls in regards to the determination, recording, and monitoring of the sliding fee process to ensure that appropriate sliding fee rates/categories are utilized for each sliding fee encounter and that all documentation supporting the sliding discount provided is retained. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: These errors are due to incorrect slide percentage amounts being put into eCW. There is also a known issue within eCW where the eCW changes the slide amount to either 100% or a different slide than was entered. The Organization has found a work around so that the Organization can fix this issue before claims are adjusted. Billing will start reviewing slide documents prior to applying slide to make sure that the percentage entered into eCW is correct for income/family size. These will also be reviewed by the front desk manager and lead patient service representative.

View Audit 404425

Finding 1218188 (2025-002)

Material Weakness 2025

La Familia Medical Center

NM

Cash Management Internal Control / Segregation of Duties Questioned Costs § 200.303

Federal Program: Consolidated Health Centers Grant Assistance Listing No. 93.224 & 93.527 Recommendation: Our auditors recommend the Organization to review internal controls in regards to the approval of federal fund drawdown requests. Explanation of disagreement with audit finding: There is no disa...

Federal Program: Consolidated Health Centers Grant Assistance Listing No. 93.224 & 93.527 Recommendation: Our auditors recommend the Organization to review internal controls in regards to the approval of federal fund drawdown requests. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization is in agreement with finding. The control issue was due to turnover in finance staff during fiscal year 2025. Under the direction of the Organization’s new CFO, the following revised procedures for cash management have been implemented for fiscal year 2026: • Payroll Documentation: A staff accountant or the controller will compile payroll expense details along with supporting documentation for each drawdown. • Review and Approval: This documentation is submitted to the CFO for review prior to any fund transfer. • Drawdown Execution: Upon approval, the CFO will initiate the drawdown from PMS. • Frequency: Drawdowns are processed on a biweekly basis and reflect expenses from the preceding payroll cycle. Upon completion of the drawdown, the CFO will save a copy of the drawdown request to the internal drive. • This drawdown receipt is reviewed by a second staff member, either the controller or senior accountant. • Drawdowns are also reviewed during monthly bank reconciliations.

View Audit 404425

Finding 1218185 (2025-003)

Material Weakness 2025

Child Care & Nutrition INC

MN

Internal Control / Segregation of Duties Subrecipient Monitoring

Child Care and Nutrition, Inc. respectfully submits the following corrective action plan for the year ended September 30, 2025. Audit period: October 1, 2024-September 30, 2025 The findings from the September 30, 2025 schedule of findings and questioned costs are discussed below. The findings are nu...

Child Care and Nutrition, Inc. respectfully submits the following corrective action plan for the year ended September 30, 2025. Audit period: October 1, 2024-September 30, 2025 The findings from the September 30, 2025 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT MATERIAL WEAKNESS 2025-001 Internal Accounting Controls Recommendation: We recommend management be aware to the lack of segregation of duties within the accounting functions and provide oversight to ensure the internal control policies and procedures are being implemented by organization staff. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization will continue to review the accounting functions of all affected departments so segregate them as it is cost beneficial. Name of the contact person responsible for corrective action: Sherri Looft, Executive Director Planned completion date for corrective action plan: September 30, 2026. MATERIAL WEAKNESS 2025-002 Annual Financial Reporting Under Generally Accepted Accounting Principles Recommendation: Management should continue to evaluate their internal staff capacity to determine if an internal control policy over the annual financial reporting is beneficial. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization understands this is required communications for the preparation of the financial statements and will continue to work at this area to achieve the overall goal. Name of the contact person responsible for corrective action: Sherri Looft, Executive Director Planned completion date for corrective action plan: September 30, 2026. FINDINGS – FEDERAL AWARD PROGRAMS 2025-003 Internal Accounting Controls Federal Agency: U.S. Department of Agriculture Federal Program: Child and Adult Care Food Program CFDA Number: 10.558 Pass Through Agency: Minnesota Department of Education, Child Nutrition Section Pass Through Number: 1000003400 Award Periods: Year ended September 30, 2025 Recommendation: We recommend management be aware to the lack of segregation of duties within the accounting functions and provide oversight to ensure the internal control policies and procedures are being implemented by organization staff. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization will continue to review the accounting functions of all affected departments so segregate them as it is cost beneficial. Name of the contact person responsible for corrective action: Sherri Looft, Executive Director Planned completion date for corrective action plan: September 30, 2026.

View Audit 404424

Corrective Action Plans

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