Corrective Action Plans

Finding 1175526 (2025-001)

Material Weakness 2025

NC

Special Tests & Provisions Material Weakness Internal Control / Segregation of Duties

Finding 2025-001: Name of Contact Person: Joshua Stutts & Alanna Burkhart Corrective Action/Management Response: The Agency acknowledges nine instances of claims entered in EPI where adequate case documentation was not maintained. Nine case files did not include a signed form 1682. 1. The agency ack...

Finding 2025-001: Name of Contact Person: Joshua Stutts & Alanna Burkhart Corrective Action/Management Response: The Agency acknowledges nine instances of claims entered in EPI where adequate case documentation was not maintained. Nine case files did not include a signed form 1682. 1. The agency acknowledges findings of three instances of claims entered into EPI where adequate case documentation was not maintained due to staff turnover. 2. Current vacancy for Income Maintenance Investigator II position will be filled by December 1, 2025. 3. Train new staff on the revision of Program Integrity training curriculum beginning by December 31, 2025, and will be completed by June 30, 2026. A copy of the training program curriculum will be available for review. Proposed Completion Date: December 31, 2025

View Audit 389295

Finding 1175524 (2025-004)

Material Weakness 2025

St. Catherine University

MN

Student Financial Aid

Student Financial Aid Cluster – Assistance Listing No.: Various Recommendation: We recommend the University evaluate its procedures and policies around reporting disbursements to COD to ensure that student information is reported accurately and timely. Explanation of disagreement with audit finding:...

Student Financial Aid Cluster – Assistance Listing No.: Various Recommendation: We recommend the University evaluate its procedures and policies around reporting disbursements to COD to ensure that student information is reported accurately and timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Outdated Banner jobs have been updated. After review, the 3PELL disbursement on 08/28/2024 was not caused by human intervention. The early disbursement occurred because Automic ran during that period using the outdated RPEDISB job, which can, in rare cases, trigger a disbursement without a COD Document ID. The Pell grant did not officially originate in COD until 09/12/2024, so the disbursement technically occurred earlier than expected. This was due to the legacy process still running in Automic despite Ellucian phasing out RPEDISB. Name of the contact person responsible for corrective action: This change was made by our former IT Department, prior to contracting with our current IT Managed Services partner, Collegis Education. Going forward, any similar technical issues would fall under the leadership of our new CIO, Debra Lang. Planned completion date for corrective action plan: September 2024 If the United States Department of Education has questions regarding this schedule, please call LaNita Robinson at 651-690-7795.

View Audit 389292

Finding 1175518 (2025-003)

Material Weakness 2025

St. Catherine University

MN

Student Financial Aid

Student Financial Aid Cluster – Assistance Listing No.: Various Recommendation: We recommend the University review its reporting procedures to ensure the students’ statuses are accurately and timely reported to NSLDS as required by regulations. Explanation of disagreement with audit finding: There i...

Student Financial Aid Cluster – Assistance Listing No.: Various Recommendation: We recommend the University review its reporting procedures to ensure the students’ statuses are accurately and timely reported to NSLDS as required by regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We continue to have system-related issues, for example, the NSC FTP didn't accept our October report, so it was late and it took a long time for us to figure out what had happened. Also, the wrong dates were sent in fall. Our system sent summer dates during the fall semester. Student Affairs staff are now contacting students who have withdrawn in the semester to encourage them to complete a “Leave of Absence” (LOA) request if they think they will not be returning in the subsequent semester. Students have the ability to make their decision at any time. Once we are notified of an LOA, we are updating our system and sending that information to NSLDS. Name of the contact person responsible for corrective action: Kerri Vickers, Registrar. Planned completion date for corrective action plan: On-going.

View Audit 389292

Finding 1175512 (2025-003)

Material Weakness 2025

Region III Workforce Investment Board of Kanawha County, Inc.

WV

Matching / Level of Effort / Earmarking § 200.303

2025-003 EARMARKING U.S. Department of Labor Assistance Listing Number 17.258/17.259/17.278 Condition: During our testing of Earmarking requirements for Youth Activities, we noted that approximately 13 percent of Youth activity finds allocated to the local area, except for the local area expenditure...

2025-003 EARMARKING U.S. Department of Labor Assistance Listing Number 17.258/17.259/17.278 Condition: During our testing of Earmarking requirements for Youth Activities, we noted that approximately 13 percent of Youth activity finds allocated to the local area, except for the local area expenditures for administration, was used to provide paid and unpaid work experience, which is not in compliance with the provisions stated in the Uniform Grant Guidance under the WIOA Cluster for Youth Activities. Recommendation: We recommend that the Board regularly review the grant expenditures for each of its programs and activities to ensure that all requirements for earmarking within the Uniform Grant Guidance are met. Region 3 Action: the Board will conduct formal monthly reviews of all WIOA grant expenditures by program and funding stream. These reviews will compare actual expenditure to budget allocations and earmarking requirements to ensure compliance with Uniform Grant Guidance and WIOA statutory requirements. Financial staff will prepare monthly expenditure reports, which will then be reviewed and approved by the Executive Director and presented quarterly to the Finance Committee of the Board. The Finance Committee will document its review in meeting minutes. The Board believes these corrective measures strengthen internal controls and ensure ongoing compliance with federal grant requirements. We are committed to maintaining sound fiscal oversight and full adherence to all applicable WIOA and Uniform Grant Guidance requirements.

View Audit 389289

Finding 1175511 (2025-002)

Material Weakness 2025

Region III Workforce Investment Board of Kanawha County, Inc.

WV

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

2025-002 Eligibility- WIOA intake applications were not signed properly U.S. Department of Labor Assistance Listing Number 17.258/17.259/17.278 Condition: During our testing of WIOA participants, it was noted that for one of the six youth participants selected for testing the WIOA intake application...

2025-002 Eligibility- WIOA intake applications were not signed properly U.S. Department of Labor Assistance Listing Number 17.258/17.259/17.278 Condition: During our testing of WIOA participants, it was noted that for one of the six youth participants selected for testing the WIOA intake application was not signed by the case manager. Recommendation: We recommend that the Board thoroughly review all applications for Youth Activities to ensure that all required eligibility documentation is completed and properly approved. Region 3 Action:ln direct response to this finding, the Board developed and implemented a comprehensive Youth Eligibility Policy, effective February 25, 2025. This policy establishes clear and enforceable procedures to ensure that all youth participants are properly vetted prior to receiving WIDA-funded services.Specifically, the policy includes a dedicated "Eligibility Verification" and "Documents for Verifying WIOA Eligibility" section which requires that service providers confirm each individual meets all applicable WIOA eligibility requirements including age, selective service registration and citizenship status at the time of registration. The policy further requires that each participant file contain a completed application along with supporting documentation confirming general WIOA eligibility and all applicable Youth eligibility data elements. Additionally, all questions on the intake form must be fully answered and both the applicant and the intake staff member are required to sign the intake forms prior to the delivery of services. Primary Eligibility Review is the Local Board's program staff's responsibility to ensure all registration paperwork is complete and accurate before WIOA enrollment.The Board is confident that these policy requirements provide the necessary framework and controls to ensure consistent, documented eligibility verification across all service providers administering youth activities under WIOA. The Board will continue to monitor compliance with this policy through its oversight activities to ensure the controls remain effective on an ongoing basis.

View Audit 389289

Finding 1175510 (2025-001)

Material Weakness 2025

Region III Workforce Investment Board of Kanawha County, Inc.

WV

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

2025-001 REPORTING-MACC reports did not contain evidence of supervisory approval Condition: For all MACC reports selected for testing, management was unable to provide adequate support that the reports were properly reviewed and approved prior to being submitted. Recommendation: We recommend that th...

2025-001 REPORTING-MACC reports did not contain evidence of supervisory approval Condition: For all MACC reports selected for testing, management was unable to provide adequate support that the reports were properly reviewed and approved prior to being submitted. Recommendation: We recommend that the Board design and implement controls to ensure that all required reporting is submitted accurately in a timely fashion, with proper review and approval prior to submission. Region 3 action: Although Region 3 has established a monthly checklist that is reviewed and signed off by Brenda Hunt CPA, it is a work in progress and ad ustments will be made to reflect an additional review and approval prior to submission.

View Audit 389289

Finding 1175485 (2025-003)

Material Weakness 2025

Pathfinder Services, Inc.

IN

Allowable Costs / Cost Principles Reporting Internal Control / Segregation of Duties § 200.403 § 200.405

Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and will document the allocation methods used for employees and expenses.

View Audit 389278

Finding 1175483 (2025-002)

Material Weakness 2025

Pathfinder Services, Inc.

IN

Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.303

Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has implemented various approval and documentation procedures.

View Audit 389278

Finding 1175481 (2025-001)

Material Weakness 2025

Center Township Elderly Housing, Inc.

PA

HUD Housing Programs

Management will update internal procedures to ensure that RFR deposits are recorded only when cash is transferred and will review the RFR account regularly to ensure compliance with HUD requirements.

View Audit 389276

Finding 1175480 (2025-003)

Material Weakness 2025

Knox College

IL

Student Financial Aid Matching / Level of Effort / Earmarking § 200.303

Identifying Number: 2025-003 Finding: Graham Leach Bliley Act – Student Information Security The College’s written information security program did not include the following elements required by regulation as agreed to in the PPA: • The College has performed a risk assessment utilizing internal reso...

Identifying Number: 2025-003 Finding: Graham Leach Bliley Act – Student Information Security The College’s written information security program did not include the following elements required by regulation as agreed to in the PPA: • The College has performed a risk assessment utilizing internal resources but has not fully integrated the information security program on the results of this assessment, nor has the College included all required elements of internal and external risks to the security, confidentiality or integrity of customer information. The College’s risk assessment is in the process of implementing an inventory of IT systems that process and store customer information and the compliance with information security elements related to multifactor authentication, access control, change management, logging and alerting and encryption. • The College has not identified, designed or implemented safeguards for all of the risks identified in the risk assessment. The safeguards do not include the identification of security events the detection and response capabilities to support incident response is still being developed. • The College has not been able to test safeguards because safeguards have not been fully designed or implemented in response to the risk assessment. • The College has not developed written policies and procedures to ensure that personnel are able to enact the information security program. There is a lack of evidence of leadership being required to report to the board or an appropriate supervisory council to ensure those charged with governance are informed on the current state of the information security program. Corrective Actions Taken or Planned: 1. Integration of Risk Assessment Results • Corrective Actions Taken or Planned: Complete a new risk assessment for our new information systems and fully integrate the results including safeguards into the College’s information security program. • Person Responsible: James Stevens, Chief Information Officer, jstevens@knox.edu • Anticipated Completion Date: June 30, 2026 2. Provide Training for Written Policies and Procedures • Corrective Actions Taken or Planned: Distribute written policies and procedures to ensure personnel can enact the information security program. Provide training to all relevant staff. • Person Responsible: James Stevens, Chief Information Officer, jstevens@knox.edu • Anticipated Completion Date: June 30, 2026 3. Testing of Safeguards • Corrective Actions Taken or Planned: Conduct regular testing of implemented safeguards to ensure effectiveness. Document results and make improvements as needed. • Person Responsible: James Stevens, Chief Information Officer, jstevens@knox.edu • Anticipated Completion Date: June 30, 2026 4. Comprehensive Inventory of IT Systems • Corrective Actions Taken or Planned: Update and maintain our inventory of all IT systems that process and store customer information. Ensure compliance with multifactor authentication, access control, change management, logging, alerting, and encryption requirements. • Person Responsible: James Stevens, Chief Information Officer, jstevens@knox.edu • Anticipated Completion Date: June 30, 2026 5. Governance and Reporting • Corrective Actions Taken or Planned: Establish a formal process requiring leadership to report on the state of the information security program to the Board of Trustees and include in our security policies. • Person Responsible: James Stevens, Chief Information Officer, jstevens@knox.edu • Anticipated Completion Date: 6/30/2026 6. GLBA Policy Enhancement • Corrective Actions Taken or Planned: Review and revise the information security policy to ensure all GLBA-required elements are included, referencing current regulatory guidance. • Person Responsible: James Stevens, Chief Information Officer, jstevens@knox.edu • Anticipated Completion Date: 6/30/2026

View Audit 389269

Finding 1175475 (2025-002)

Material Weakness 2025

Knox College

IL

Student Financial Aid

Identifying Number: 2025-002 Finding: Disbursements to or on Behalf of Students (Credit Balances) The College did not pay the Title IV credit balances to the students directly within the required timeline noted above. Out of the 40 students tested, we noted 2 students (5%) whose credit balances were...

Identifying Number: 2025-002 Finding: Disbursements to or on Behalf of Students (Credit Balances) The College did not pay the Title IV credit balances to the students directly within the required timeline noted above. Out of the 40 students tested, we noted 2 students (5%) whose credit balances were not paid directly to the students within the required timeframe noted above. The incorrect timing did not have an effect on the total award given to students (timing only). The College did not have formally documented controls related to the process associated with disbursements to or on behalf of students (credit balances), which is required under Uniform Grant Guidance. Corrective Actions Taken or Planned: Knox College has implemented the following corrective measures to ensure compliance with federal credit balance requirements: 1. Automated Monitoring: A system-generated report (Aging Report) of all student credit balances is now produced twice per week from the Jenzabar J1 student information system. 2. Formal Workflow: The AVP of Student Financial Services (SFS) will review the Student Accounts Aging Report. Student Financial Services Advisors will review each of their student accounts that have a credit balance within 24 hours. If the student has a credit balance and has receive Title IV aid during the academic year, the advisor will review if the credit balance is derived by Title IV. A standardized credit balance processing schedule has been established, ensuring that credit balances are reviewed and released within 14 days of disbursement. Role Clarification: Responsibilities are now clearly defined: • SFS confirms refund eligibility. • Business Office processes refunds through Bill.com and posts to the student account. Staff Training: Relevant staff received training on: • Title IV credit balance requirements • Handling of student/parent authorizations • Timely return of unclaimed funds Documentation Controls: All credit balance disbursement and return transactions are documented and retained as part of the official audit record. Person Responsible: Leigh Brinson, Assistant Vice President of Student Financial Services, ltbrinson@knox.edu Anticipated Completion Date: November 10, 2025

View Audit 389269

Finding 1175470 (2025-001)

Material Weakness 2025

Knox College

IL

Student Financial Aid Reporting Matching / Level of Effort / Earmarking § 200.303

Identifying Number: 2025-001 Finding: Error in Reporting for National Student Loan Data System (NSLDS) The College did not properly report the student enrollment change for students who received federal student aid to the NSLDS. The College did not timely report three students’ Program-Level or Camp...

Identifying Number: 2025-001 Finding: Error in Reporting for National Student Loan Data System (NSLDS) The College did not properly report the student enrollment change for students who received federal student aid to the NSLDS. The College did not timely report three students’ Program-Level or Campus-Level enrollment status change to NSLDS. Out of the 25 students tested, we noted 3 students (12%) whose status change at the Program-Level and Campus-Level was not timely reported to NSLDS. The College did not have adequate controls related to the process of enrollment reporting, which is required under Uniform Grant Guidance. Corrective Actions Taken or Planned: Knox College will add a third report submission to the end of the term. This will ensure that we report any students that made end of term withdrawals within the time window we are required to report. Any students who withdraw between terms will be captured in the first report submitted after our two week census. Person Responsible: Patrick Hathaway, Registrar, phathaway@knox.edu Anticipated Completion Date: December 31, 2025

View Audit 389269

Finding 1175465 (2025-003)

Material Weakness 2025

Thaddeus Stevens College of Technology

PA

Student Financial Aid Reporting Matching / Level of Effort / Earmarking

Finding 2025-003: Late Student Status Change Reporting Federal Agency: U.S. Department of Education Program: Student Financial Assistance Cluster Criteria: 34 CFR 668.32 requires that an organization reports student status changes within 60 days of graduation, withdrawal, or other roster status chan...

Finding 2025-003: Late Student Status Change Reporting Federal Agency: U.S. Department of Education Program: Student Financial Assistance Cluster Criteria: 34 CFR 668.32 requires that an organization reports student status changes within 60 days of graduation, withdrawal, or other roster status changes. Condition: The change in status for 4 of 40 students tested was not reported to the National Student Loan Data System (NSLDS) within 60 days of the change. Cause: Staffing changes during the year impacting the College’s internal control structure resulted in an administrative delay in reporting the changes to NSLDS. Effect: The effect of the condition described above was that the College was not in compliance with NSLDS reporting requirements. Repeat Finding: This is not a repeat finding. Questioned costs: There are no known questioned costs to report. Recommendation: We recommend that the College ensures sufficient staffing is available to report NSLDS requirements timely. View of Responsible Officials and Planned Corrective Action Corrective Action Plan: There is no disagreement with this audit finding. During the fall of 2024 the Registrar’s Office was downsized. This resulted in the delayed processing of the error report following the 10.25.2024 report. This resolution required contacting NSC for assistance in clearing two of the errors, which increased the processing time. Moving forward, the Registrar’s Office will continue to report to NSC on the predetermined schedule, process errors timely, and additionally, a quality control check will be implemented for the Financial Aid Office to compare NSLDS records following the NSC transmissions. Name(s) of the contact person(s) responsible for corrective action: Dr. Melissa Wisniewski, Dean of Enrollment Services at 717-391-7234. Planned completion date for corrective action plan: February 2026 If the Department of Education has questions regarding this plan, please call the Vice President of Finance and Administration, Mr. George Longridge at 717-391-6947.

View Audit 389259

Finding 1175461 (2025-002)

Material Weakness 2025

Thaddeus Stevens College of Technology

PA

Student Financial Aid Allowable Costs / Cost Principles Eligibility

Finding 2025-002: Student Financial Aid Cluster – Allowable Costs and Allowable Activities and Eligibility Federal Agency: U.S. Department of Education Program: Student Financial Assistance Cluster Criteria: The College is required to have controls in place to ensure students receive the proper amou...

Finding 2025-002: Student Financial Aid Cluster – Allowable Costs and Allowable Activities and Eligibility Federal Agency: U.S. Department of Education Program: Student Financial Assistance Cluster Criteria: The College is required to have controls in place to ensure students receive the proper amount of student financial assistance they are entitled to based on financial need. Condition: Our financial aid sample of 40 items tested yielded 31 students who received Direct Loan Funding. Of the 31 students who received Direct loan funding, we noted 1 instance where the student received the incorrect amount of Unsubsidized funding. Based on the students Student Aid Index, the student should have received $1,750 in Unsubsidized funding; however, they received $2,227 in Unsubsidized Direct Loan funding, resulting in an overpayment of Direct Loan funding of $477. Cause: The controls in place did not detect that the student had incorrectly been awarded assistance based on more than 30 credits when they actually had 25 credits. The additional 5 credits needed for the amount of the award were not earned until the following semester. Effect: Internal controls related to student financial assistance were not operating properly. Repeat Finding: This is not a repeat finding. Questioned costs: $477 Recommendation: We recommend Thaddeus develop systems that would detect credits posted but not earned to ensure proper student assistance is awarded. View of Responsible Officials and Planned Corrective Action: Management agrees. See separate Corrective Action Plan. Corrective Action Plan: There is no disagreement with the audit finding. After reviewing the policy for Grade-Level Advancement for Direct Loan Consideration, it was determined that the student referenced in the funding did not meet the qualifications needed to be considered a sophomore level student for the Fall 2024 semester. The student became eligible for the increased loan amount in the Spring 2025 semester. The $500 that was incorrectly awarded to the student for the Fall 2024 semester has been corrected and reallocated to Spring 2025. The Office of Financial Aid has created a procedure to check student loan amounts during fall and spring semester to ensure accuracy. Additionally, an Assistant Director of Financial Aid was hired in February 2025 to strengthen financial aid administration within the department. Name(s) of the contact person(s) responsible for corrective action: Melissa Wisniewski, Dean of Enrollment Services at 717-391-7234. Planned completion date for corrective action plan: January 2026. If the Department of Education has questions regarding this plan, please call the Vice President of Finance and Administration, George Longridge at 717-391-6947.

View Audit 389259

Finding 1175445 (2025-002)

Material Weakness 2025

Round Rock Housing Authority

TX

HUD Housing Programs

During the time of the SEMAP submission the housing authority had an unexpected change of staff. This contributed to the agency overlooking the signing of the required board resolution to approve the SEMAP. To keep this from occurring again, RRHA will not submit the SEMAP certification to HUD until ...

During the time of the SEMAP submission the housing authority had an unexpected change of staff. This contributed to the agency overlooking the signing of the required board resolution to approve the SEMAP. To keep this from occurring again, RRHA will not submit the SEMAP certification to HUD until the resolution has been signed.

View Audit 389242

Finding 1175444 (2025-001)

Material Weakness 2025

Round Rock Housing Authority

TX

HUD Housing Programs Internal Control / Segregation of Duties Subrecipient Monitoring

At the time of the most recent independent audit by Smith Marion conducted in December 2025, it was found that RRHA was not completing voucher re-inspections within the required timeframe when an inspection failed. Health and safety inspections are required to be reinspected within 48 hours, and oth...

At the time of the most recent independent audit by Smith Marion conducted in December 2025, it was found that RRHA was not completing voucher re-inspections within the required timeframe when an inspection failed. Health and safety inspections are required to be reinspected within 48 hours, and other inspections must be completed within 30 days. In the past RRHA only had one inspector on staff who tracked all inspections. Due to an increase in portability vouchers a second caseworker was hired in 2025. However, a new system was not created to track both caseworker’s inspections. This resulted in RRHA overlooking timelines and not completing inspections in a timely manner as required. Part of this was also related to miscommunication between the two case workers. To ensure inspections are completed as required by HUD regulation, in the future, each caseworker/inspector is now required to schedule a follow-up inspection appointment at the same time as the failed inspection report is created. Additionally, a separate shared spreadsheet has been created to track failed inspection and verify that each one is being completed within the required time. With these new steps in place we can indicate if a failed inspection needs a 24-hour and/or a 30- day re-inspection and if a follow-up inspection has been already scheduled. RRHA also increased the scheduled time/ days from once a week to two days a week for inspection since we now have two HCV employees/ inspectors available. Effective immediately the process for inspection has been updated and both HCV employees are completing inspections.

View Audit 389242

Finding 1175443 (2025-003)

Material Weakness 2025

City of Sand Springs

OK

Reporting Subrecipient Monitoring § 200.331 § 200.510

RE: Finding 2025-003 Misreporting of Pass-Through Grant Expenditures in Compliance Report In conjunction with our FY25 annual audit, please see the City's corrective action plan below: The City of Sand Springs will strengthen internal controls over federal grant reporting to ensure proper distinctio...

RE: Finding 2025-003 Misreporting of Pass-Through Grant Expenditures in Compliance Report In conjunction with our FY25 annual audit, please see the City's corrective action plan below: The City of Sand Springs will strengthen internal controls over federal grant reporting to ensure proper distinction between direct federal awards and federal pass-through grants, in accordance with Uniform Guidance and SLFRF requirements. Specifically, the City will implement the following corrective actions: Separate Tracking of Direct vs. Pass-Through Funds o The Finance Department will revise grant accounting procedures to clearly segregate expenditures related to: Direct SLFRF (ARPA) awards administered by the City, and Federal pass-through grants administered by external entities, including OWRB. o Separate project codes and/or accounting identifiers will be maintained to prevent commingling of expenditures. Revision of SLFRF Reporting Procedures o Written procedures for preparation and review of the SLFRF Compliance Report will be updated to explicitly state that: Only expenditures related to direct federal awards are to be reported by the City, and Expenditures related to pass-through grants are excluded and reported by the pass-through entity. o A documented review step will be added to verify that reported expenditures align with the funding source prior to submission. Staff Training and Awareness o Finance staff involved in grant accounting and reporting will receive targeted training on: Uniform Guidance requirements (2 CFR 200), The distinction between direct federal awards and pass-through grants, and Proper SEFA and SLFRF reporting responsibilities. o Training will be documented and incorporated into onboarding materials for future staff. Coordination with Pass-Through Entity (OWRB) o The City will coordinate with OWRB to confirm: The sequence of fund utilization (pass-through vs. direct ARPA funds), and Roles and responsibilities for federal expenditure reporting. Expected completion date: Procedures will be implemented for the fiscal year ending June 30, 2026, and applied during interim processing and year-end close. Party Responsible: Finance Director and Finance Staff, in coordination with applicable Department Heads and Project Managers. Contact Information: Arlena Barnes 918-246-2646 arlena.barnes@sandspringsok.gov

View Audit 389227

Finding 1175442 (2025-002)

Material Weakness 2025

City of Sand Springs

OK

Reporting Significant Deficiency

RE: Finding 2025-002 Capital Assets Additions/Cutoff Errors In conjunction with our FY25 annual audit, please see the City's corrective action plan below: The City of Sand Springs will implement enhanced internal controls and review procedures concerning capital asset additions to ensure invoices an...

RE: Finding 2025-002 Capital Assets Additions/Cutoff Errors In conjunction with our FY25 annual audit, please see the City's corrective action plan below: The City of Sand Springs will implement enhanced internal controls and review procedures concerning capital asset additions to ensure invoices and applications for payment are accurately processed and recorded in the proper fiscal year. Specific corrective actions will include: Formalized Cutoff Review Process o Establish a documented year-end cutoff checklist for capital projects. o Require verification of invoice dates, application-for-payment periods, and substantial completion dates prior to posting. o Ensure all invoices and applications for payment are reviewed for proper fiscal year classification before approval. Improved Review of Applications for Payment o Require secondary review and approval of all applications for payment related to capital projects. o Implement a control to ensure cancelled or corrected applications for payment are clearly documented and removed from processing prior to payment. o Maintain supporting documentation evidencing review and approval. Encumbrance and Fiscal Year Posting Controls o Strengthen procedures for tracking encumbrances at year-end, including reconciliation between open encumbrances, invoices received, and capital asset postings. o Require supervisory review of all capital asset additions posted during the year-end close process to confirm proper fiscal year posting. Training and Accountability o Provide targeted training to finance and project management staff on fiscal year cutoff requirements and capital asset accounting. o Clearly define roles and responsibilities for invoice review, posting, and approval to reduce reliance on informal manual adjustments. Expected completion date: Procedures will be implemented for the fiscal year ending June 30, 2026, and applied during interim processing and year-end close. Party Responsible: Finance Director and Finance Staff, in coordination with applicable Department Heads and Project Managers. Contact Information: Arlena Barnes 918-246-2646 arlena.barnes@sandspringsok.gov

View Audit 389227

Finding 1175441 (2025-001)

Material Weakness 2025

City of Sand Springs

OK

Procurement, Suspension & Debarment HUD Housing Programs Internal Control / Segregation of Duties

Finding 2025-001 Corrective Action Plan Condition: Various departments received invoices for goods purchased or services performed prior to receiving appropriate approvals per the City's purchasing policies. In conjunction with our fiscal year 2025 annual audit, please see the City's corrective acti...

Finding 2025-001 Corrective Action Plan Condition: Various departments received invoices for goods purchased or services performed prior to receiving appropriate approvals per the City's purchasing policies. In conjunction with our fiscal year 2025 annual audit, please see the City's corrective action plan below: Staff authorized to submit and approve requisitions will be subject to further training on the City's purchasing process and procedures. Together with additional training, and new software tools, this process is expected to be improved. Expected completion date: 6/30/2026 Party Responsible: Arlena Barnes, Finance Director Contact Information: 918-246-2646 | arlena.barnes@sandspringsok.gov

View Audit 389227

Finding 1175440 (2025-001)

Material Weakness 2025

Milwaukee Institute of Art and Design, Inc.

WI

Reporting Special Tests & Provisions Student Financial Aid

Finding 2025-001 Condition Management implemented controls that specifically addressed some of the circumstances surrounding prior year finding 2024-001. Management's review of the enrollment reporting did not timely report certain student Campus-Level and Program-Level data elements. Student record...

Finding 2025-001 Condition Management implemented controls that specifically addressed some of the circumstances surrounding prior year finding 2024-001. Management's review of the enrollment reporting did not timely report certain student Campus-Level and Program-Level data elements. Student records within the NSLDS was identified with non-timely Campus-Level and Program-Level data elements. Corrective Action Plan Corrective Action Planned: Management agrees with the finding. To resolve this issue, when a student formally withdraws or is academically dismissed in summer, the student information will be manually added to the next National Student Clearinghouse (NSC) upload file, submitted once a month, and marked as “Withdrawn” with an effective status date of the withdrawn date of determination. This complies with NSC processes detailed here: https://help.studentclearinghouse.org/compliancecentral/knowledge-base/enrollment-reporting-for-summer-and-other-non-required-terms/. Name of Contact Person Responsible for Corrective Action: Mark Fetherston, Vice President for Enrollment Management Anticipated Completion Date: Process and procedures will be updated in February 2026, with first implementation in May 2026 (as part of the Summer 2026 submission process).

View Audit 389221

Finding 1175419 (2025-001)

Material Weakness 2025

City of Reno

NV

Subrecipient Monitoring Reporting Significant Deficiency

Federal program: Community Development Block Grants/Entitlement Special Purpose Grants Cluster (CFDA #14.218). Condition/context: During testing, auditors were provided with documentation that indicated the City did not file a PR29-CDBG Cash on Hand Quarterly report by the specified due date. Of the...

Federal program: Community Development Block Grants/Entitlement Special Purpose Grants Cluster (CFDA #14.218). Condition/context: During testing, auditors were provided with documentation that indicated the City did not file a PR29-CDBG Cash on Hand Quarterly report by the specified due date. Of the four (4) reports available for testing, two (2) were randomly selected and it was noted that one (1) was not filed by the due date. Corrective action: The City will establish and maintain deadlines and monitor the timely submission of all required reports under the CDBG program, including the PR29 quarterly report. The tracking system will include key due dates, responsible staff and confirmation of submission to ensure accountability and consistency. Procedures will also be established and implemented to ensure continuity of reporting in the event of staff turnover. Implementation date: Implemented and in effect immediately. Contact person: Elaine Wiseman, (775)334-2578, wisemane@reno.gov

View Audit 389174

Finding 1175414 (2025-001)

Material Weakness 2025

Chestnut Health Systems, INC

IL

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.320

United States Department of Health and Human Services 2025-001 Procurement – Assistance Listing No. 93.279 Condition: The Organization did not maintain sufficient documentation to support the procurement method utilized prior to engaging a contracted service provider. Recommendation: We recommend th...

United States Department of Health and Human Services 2025-001 Procurement – Assistance Listing No. 93.279 Condition: The Organization did not maintain sufficient documentation to support the procurement method utilized prior to engaging a contracted service provider. Recommendation: We recommend the Organization consistently follow its established policies and procedures related to the maintaining of necessary documentation to support the method of procurement utilized. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Given the infrequency of spend in excess of the Simplified Acquisition Threshold, Chestnut will take a targeted approach in the corrective action. An initial first step in correction action has been taken and completed 2/18 including educating and informing Chestnut Health Systems Audit Committee and Chestnut Executive Leadership of lack of documentation supporting the procurement process. The Executive Leadership team and assigned grant leadership will be provided with the current Chestnut Procurement policy, reinforcing the requirements at each respective level of spend. For those programs with anticipated vendor spend in excess of the Simplified Acquisition Threshold, targeted working sessions will occur with respective program leadership and the Executive Leadership team to reinforce expectations, review template tools that can be leveraged during the process, and to remedy any gaps in understanding the policy and execution of the policy. Name(s) of the contact person(s) responsible for corrective action: Melissa Woodbury, CFO. Planned completion date for corrective action plan: By June 1, 2026 If there are any questions regarding this plan, please call Melissa Woodbury, CFO, at 309-820-3572.

View Audit 389155

Finding 1175413 (2025-001)

Material Weakness 2025

The Peregrine Fund, Inc.

ID

Subrecipient Monitoring § 200.332

Views of Responsible Officials: The Organization's procedure manual will be updated to include procedures that align with 2 CFR 200.332. These procedures will include the documentation of risk assessment for each subrecipient, and establish monitoring activities that are responsive to the level of r...

Views of Responsible Officials: The Organization's procedure manual will be updated to include procedures that align with 2 CFR 200.332. These procedures will include the documentation of risk assessment for each subrecipient, and establish monitoring activities that are responsive to the level of risk.

View Audit 389127

Finding 1175411 (2025-002)

Material Weakness 2025

Guilford College

NC

Special Tests & Provisions Student Financial Aid Significant Deficiency

Audit Period: June 30, 2025 The findings from the June 30, 2025 Schedule of Findings and Questioned Costs (the “Schedule”) are discussed below. The findings are numbered consistently with the number assigned in the Schedule. FINDINGS AND QUESTIONS COSTS – MAJOR FEDERAL AWARD PROGRAM AUDIT 2025-002 –...

Audit Period: June 30, 2025 The findings from the June 30, 2025 Schedule of Findings and Questioned Costs (the “Schedule”) are discussed below. The findings are numbered consistently with the number assigned in the Schedule. FINDINGS AND QUESTIONS COSTS – MAJOR FEDERAL AWARD PROGRAM AUDIT 2025-002 – U.S. Department of Education, SFA Cluster, Special Tests and Provisions - Return of Title IV Refunds (Significant Deficiency) Condition: From a population of 74 students that officially or unofficially withdrew during the term, we tested nine students and noted that four students required refund calculations. From the fall 2024 semester calculations we noted that the College did not deduct Thanksgiving break of nine days, November 23, 2024 through December 1, 2024, from the total days in the semester. Criteria: The total number of calendar days in a payment period or period of enrollment includes all days within the period that a student was scheduled to complete, except that scheduled breaks of at least five consecutive days are excluded from the total number of calendar days in a payment period or period of enrollment and the number of calendar days completed in that period (34 CFR Section 668.22(f)(2)(i)). Cause: Controls to ensure proper calculation of Title IV refunds did not function as related to the condition above. Effect: Calculations were incorrect for the three students tested that officially or unofficially withdrew during the fall 2024 term resulting in an incorrect amount of funds returned to the student and the Department of Education. Repeat Finding from a Prior Year: No Recommendation: We recommend the College implement procedures for accurate preparation and calculation of Title IV refunds. Management Response: The college is in agreement with the recommendation to implement procedures for accurate preparation and calculation of Title IV funds. If the Federal Audit Clearinghouse has questions regarding this plan, please call Danielle Pfaff, Controller, at 1-336-316-2140 or dpfaff@guilford.edu

View Audit 389123

Finding 1175410 (2025-003)

Material Weakness 2025

City of Union City School District

NJ

Procurement, Suspension & Debarment

The District review and either nullify or accept and authorize with a resolution of the board of education: 1) a subrecipient grant agreement for Clean School Bus Program grant with Van-Con, Inc., a for profit entity; and 2) the procurement, contract award, and purchase of electric school buses from...

The District review and either nullify or accept and authorize with a resolution of the board of education: 1) a subrecipient grant agreement for Clean School Bus Program grant with Van-Con, Inc., a for profit entity; and 2) the procurement, contract award, and purchase of electric school buses from Van-Con, Inc. using such Clean School Program grant funds. If a contract is awarded with grant funds, such contract be properly encumbered in the District’s financial reporting system.

View Audit 389118

Corrective Action Plans

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