Corrective Action Plans

Finding 1169069 (2025-002)

Material Weakness 2025

OR

HUD Housing Programs

Management will ensure that any distributions of project assets are approved by HUD in advance. A formal written policy has been adopted that requires all proposed distributions to be submitted to HUD for prior written approval before any disbursement. The policy clearly defines roles, responsibilit...

Management will ensure that any distributions of project assets are approved by HUD in advance. A formal written policy has been adopted that requires all proposed distributions to be submitted to HUD for prior written approval before any disbursement. The policy clearly defines roles, responsibilities, and the approval workflow. No distributions are to be processed without documented evidence of HUD’s written approval. This verification is required before processing any transaction.

View Audit 381763

Finding 1169068 (2025-001)

Material Weakness 2025

Chehalem Valley Housing Corporation

OR

HUD Housing Programs

The Project will make catch-up deposits when operating cash is available. In addition, the following measures have been implemented: 􀁸 A monthly compliance checklist has been established to verify timely reserve for replacement deposits. 􀁸 The Housing Accountant is required to provide monthly confir...

The Project will make catch-up deposits when operating cash is available. In addition, the following measures have been implemented: 􀁸 A monthly compliance checklist has been established to verify timely reserve for replacement deposits. 􀁸 The Housing Accountant is required to provide monthly confirmation to the Executive Director that deposits have been made, with documentation. 􀁸 Cash flow forecasting is now conducted monthly to identify potential shortfalls in advance. This allows management to prioritize HUD-mandated deposits and, if necessary, seek HUD approval for a rent increase to improve financial stability. 􀁸 A financial policy was adopted to temporarily defer discretionary or non-essential expenditures when cash flow is tight, ensuring compliance with HUD obligations.

View Audit 381763

Finding 1169067 (2025-002)

Material Weakness 2025

Iowa Grant School District

WI

Material Weakness Internal Control / Segregation of Duties

Finding #2025-002 -Material Audit Adjustments (Prior Year Finding #2024-002) Condition: The audit proposed adjusting journal entries during the audit process to adjust District account balances. We deem these entries to be significant in relation to the financial statements. Since the District did n...

Finding #2025-002 -Material Audit Adjustments (Prior Year Finding #2024-002) Condition: The audit proposed adjusting journal entries during the audit process to adjust District account balances. We deem these entries to be significant in relation to the financial statements. Since the District did not make these adjustments in its accounting system prior to the audit, a material weakness was determined to exist in the District's internal controls. Effect: Financial reports generated by the accounting system may not provide an accurate reflection of the District's financial position or activities. Cause: Financial information was not recorded in a timely manner and numerous adjustments were needed in order to correct account balances. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner. Response: The District will establish policies and procedures to reduce the number of adjusting journal entries proposed by the auditor in future years. Contact Person: Loras Winders Anticipated Completion: June 30, 2026

View Audit 381762

Finding 1169066 (2025-001)

Material Weakness 2025

Iowa Grant School District

WI

Internal Control / Segregation of Duties

Finding #2025-00 l - Segregation of Duties (Prior Year Finding #2024-001 Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Cause: Controls Over Accounts Payable/Disbursements Person processing accounts payable is not always separate from th...

Finding #2025-00 l - Segregation of Duties (Prior Year Finding #2024-001 Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Cause: Controls Over Accounts Payable/Disbursements Person processing accounts payable is not always separate from those who print the checks. Controls Over Payroll Person preparing the payroll is not independent of other personnel duties such as custody of the checks. Criteria: Internal controls should be in place that provide adequate segregation of duties. Generally, a system of internal control contemplates separation of duties such that no individual has responsibility to execute a transaction, have physical access to the related assets, and have responsibility or authority to record the transaction. Recommendation: Procedures should be implemented segregating duties among different employees.Management should continue to maintain a working knowledge of matters relating to the District's operations. Response: We agree with this finding but due to the size of our District and financial constraints we do not believe it is cost effective to increase the office staff io an attempt to bring about a more effective segregation of duties. The Board of Education approves monthly accow1ts payable checks and the Department Head or Building Principal approves payroll timesheets prior to processing payroll. The Board, Principals, and Department Heads will continue to monitor transactions of the District. Contact Person: Loras Winders Anticipated Completion: Not Applicable

View Audit 381762

Finding 1169059 (2025-002)

Material Weakness 2025

Bethel University and Affiliates

MN

Subrecipient Monitoring Internal Control / Segregation of Duties Significant Deficiency

Student Financial Aid Cluster – Assistance Listing No. Various Recommendation: CLA recommends reviewing and updating key IT/financially relevant organization-wide policies and procedures on an annual basis. CLA also recommends the Organization review the institution's written information security pr...

Student Financial Aid Cluster – Assistance Listing No. Various Recommendation: CLA recommends reviewing and updating key IT/financially relevant organization-wide policies and procedures on an annual basis. CLA also recommends the Organization review the institution's written information security program and ensure that a qualified individual (i.e. CIO, CISO, ISO) has been identified to enforce and monitor GLBA compliance. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: During the audit period, the University experienced significant employee turnover within the Information Technology department, which contributed to delays in the review and update of key IT and financially relevant policies and procedures. A new Chief Information Officer (CIO) has since been hired and has begun addressing the gaps noted in the finding. Under the CIO’s leadership, the University is actively reviewing and updating organization-wide IT policies, procedures, and the written information security program. The CIO is also assuming responsibility for enforcing and monitoring GLBA compliance going forward. Name(s) of the contact person(s) responsible for corrective action: John Honchell, CIO Planned completion date for corrective action plan: May 31, 2026

View Audit 381755

Finding 1169053 (2025-001)

Material Weakness 2025

Bethel University and Affiliates

MN

Student Financial Aid Material Weakness Reporting

Student Financial Aid Cluster – Assistance Listing No. Various Recommendation: We recommend the University review its reporting procedures to ensure that 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 that 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: In response to these challenges, the University initiated corrective actions beginning in Summer 2025. 1. Dedicated Technical Resources: We have been assigned dedicated ITS staff members (managed by Dynamic Campus) specifically to the resolution of enrollment and graduation submission and compilation logic. 2. Submission Scheduling: A rigid schedule for monthly enrollment and graduation submissions has been established for both Branch 00 and Branch 76. 3. Staffing: An additional Registrar’s Office staff member has been shifted to assist with the NSC process, specifically focusing on the remediation of error reports. 4. Policy Revision: We have simplified the degree conferral policy to improve the accuracy of graduation reporting. We are also working to align end of term grade submission deadlines to allow for timely end of term processing and degree conferrals. This in turn will aid in more timely submissions especially as it affects graduation reporting. 5. Data Mapping: The Registrar’s Office has collaborated with ITS to audit the specific fields and tables used to generate Clearinghouse reports. This addresses the complexity of reporting on two branches involving multiple term codes. 6. Automation: We have implemented a timely and automated submission schedule. 7. Change Management Protocols: A protocol is being implemented to prevent ITS system upgrades or network maintenance during scheduled reporting windows. 8. Data Reconciliation: We will implement a strict monitoring of Clearinghouse records regarding graduation and withdrawal dates, reconciling them against the Student Information System (SIS) and NSLDS data. That will occur once we can gain NSLDS access for the two staff members. Discrepancies will be corrected immediately. Special attention will be paid to conferral dates since they may not align with the final day of the term or sub-term. 9. Cross-Departmental Alignment: We will continue regular consultations with the Financial Aid Office regarding complex registration changes to ensure consistent interpretation and reporting. 10. Ongoing Training: Staff will continue to utilize training opportunities provided by the Clearinghouse, Banner, and other relevant bodies. Name(s) of the contact person(s) responsible for corrective action: Cheryl Fisk, University Registrar Planned completion date for corrective action plan: March 1, 2026

View Audit 381755

Finding 1169047 (2025-002)

Material Weakness 2025

Parents As Teachers National Center, Inc.

MO

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Matching / Level of Effort / Earmarking

View of Responsible Officials and Planned Corrective Actions: The Center concurs with the finding. We acknowledge that our current accounting systems are outdated and lack the functionality required to support accurate and efficient expense allocations. We are in the final stages of selecting a new ...

View of Responsible Officials and Planned Corrective Actions: The Center concurs with the finding. We acknowledge that our current accounting systems are outdated and lack the functionality required to support accurate and efficient expense allocations. We are in the final stages of selecting a new accounting system that which enhance our financial reporting capabilities and improve allocation accuracy. In the interim, the Center has implemented manual procedures to mitigate the risk of misallocations. Specifically, credit card purchases are now being manually entered into the general ledger to ensure each transaction is accurately matched to its corresponding receipt. This process provides greater transparency and reduces the likelihood of erroneous allocations. Additionally, we continue to utilize our Purchase Order process, which requires pre-approval by management for all purchases. This control ensures that expenditures are authorized and properly aligned with program objectives prior to being incurred. These interim measures, combined with our upcoming system upgrade, are intended to strengthen our internal controls and ensure that expenses charged to Federal awards are allocable in accordance with 2 CFR § 75.405.

View Audit 381737

Finding 1169046 (2025-001)

Material Weakness 2025

Parents As Teachers National Center, Inc.

MO

Internal Control / Segregation of Duties Allowable Costs / Cost Principles

View of Responsible Officials and Planned Corrective Actions: We acknowledge that the current payroll expense allocation process is highly manual and susceptible to errors due to its subjective nature. The process of reviewing and editing data for upload to the general ledger (GL) relies heavily on ...

View of Responsible Officials and Planned Corrective Actions: We acknowledge that the current payroll expense allocation process is highly manual and susceptible to errors due to its subjective nature. The process of reviewing and editing data for upload to the general ledger (GL) relies heavily on manual intervention, increasing the risk of misallocations. To address this, ADP is in the process of developing a custom payroll report that will include all required fields to accurately allocate payroll expenses to the appropriate programs each pay period. This report will replace the current process, which depends on manually referencing saved reports that may contain outdated information. In addition, our monthly payroll reconciliation procedures are being updated to incorporate a comparison between data from the ADP reports and the GL. By using pivot tables to analyze raw data, we aim to enhance the accuracy of our payroll allocations and provide greater confidence in the validity of expenses charged to federal awards. These corrective actions are intended to strengthen our internal controls and ensure full compliance with the allocability requirements outlined in 2 CFR § 75.405.

View Audit 381737

Finding 1169045 (2025-001)

Material Weakness 2025

City of Surprise, Arizona

AZ

Procurement, Suspension & Debarment

Findings and Questioned Costs Related to Federal Awards Finding Number: 2025‐001 Program Name/Assistance Listing Title: Clean Water State Revolving Fund Assistance Listing Number: 66.458 Contact Person: Sandy Simmons, Finance Director Anticipated Completion Date: January 30, 2026 Planned Corrective ...

Findings and Questioned Costs Related to Federal Awards Finding Number: 2025‐001 Program Name/Assistance Listing Title: Clean Water State Revolving Fund Assistance Listing Number: 66.458 Contact Person: Sandy Simmons, Finance Director Anticipated Completion Date: January 30, 2026 Planned Corrective Action: The City will update our policy to ensure internal controls over suspension and debarment are in place to ensure compliance with federal procurement requirements. The policy will identify who is responsible for performing suspension and debarment reviews, timelines for when they are to be performed, and how records should be maintained for audit purposes.

View Audit 381736

Finding 1169044 (2025-002)

Material Weakness 2025

Lafayette School Corporation

IN

Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles § 200.208 § 200.303 § 200.403

FINDING 2025-002 Finding Subject: Special Education Cluster (IDEA)- Earmarking Summary of Finding: The School Corporation is a member of the Greater Lafayette Area Special Services Cooperative (Cooperative). During fiscal years 2023-2024, the Cooperative operated the special education programs and s...

FINDING 2025-002 Finding Subject: Special Education Cluster (IDEA)- Earmarking Summary of Finding: The School Corporation is a member of the Greater Lafayette Area Special Services Cooperative (Cooperative). During fiscal years 2023-2024, the Cooperative operated the special education programs and spent the federal money on behalf of all of its members. As the grant agreements were between the Indiana Department of Education (IDOE) and each member school, the School Corporation was responsible for ensuring and providing oversight of the Cooperative. However, there was inadequate oversight performed by the School Corporation in order to ensure compliance with the Matching, Level of Effort, Earmarking compliance requirement. The School Corporation did not have internal controls in place to ensure that the Cooperative complied with the earmarking requirements. The Cooperative did not have adequate procedures in place to ensure that the required level of expenditures for nonpublic school students with disabilities was met for each member school. The Cooperative did not have effective internal controls to ensure nonpublic school expenditures were appropriately identified and reported. The Non-Public Proportionate Share expenditures for the 22611-021-PN01, 22611-021-ARP, 22619-021-ARP, 23611-021-PN01, and 23619-021-PN01 grant awards could not be verified for the individual member schools. Total grant expenditures were posted as expended. The nonpublic proportionate share expenditures were determined by applying a percentage to the nonpublic school budgeted expenditures. As such, we were unable to identify if the minimum amount per the grant awards was expended and properly reported to the IDOE as required. The lack of internal controls and noncompliance were isolated to the 22611-021-PN01, 22611-021-ARP, 22619-021-ARP, 23611-021-PN01, and 23619-021-PN01 grant awards. Contact Person Responsible for Corrective Action: Lissa Stranahan Contact Phone Number and Email Address: (Phone) 765-771-6013 (Email) lstranahan@lsc.k12.in.us Views of Responsible Officials: We concur with the finding. The Greater Lafayette Area Special Services (GLASS)and Local Education Agency, Lafayette School Corporation, concur with the audit finding for Earmarking. GLASS did not have adequate procedures in place to ensure that the required level of expenditures for non-public school students with disabilities was met for each member school. The Cooperative did not have effective internal controls to ensure non-public school expenditures were appropriately identified and reported. The methodology used by the Cooperative to monitor non-public proportionate share expenditures was based upon a percentage for each school corporation that comprises the Cooperative rather than basing the expenditures off of the grant award for each non-public school within the geographical boundaries of the school corporations. While all proportionate share funds were expended, it was problematic in determining if the minimum amount per the grant awards was expended and properly reported prior to July 1, 2024. INDIANA STATE BOARD OF ACCOUNTS 28 Description of Corrective Action Plan: The former Director of GLASS retired June 30, 2023. Upon hire on July 1, 2023, the new director immediately implemented measures to correct the previous methodology used at GLASS. Non-public proportionate share funds are identified and reported based upon the grant award for each school corporation. The expenditures are based upon the geographical location of the non-public school and the corresponding public school corporation, not based upon the “home” school corporation of the student. This process was implemented and descriptions were included on the ledgers to identify non-public school proportionate share for grants that were initiated during the FY 2024-2025 school year. Anticipated Completion Date: The corrective action was already put into place on July 1, 2023 and implemented with FY 2024-2025. The audit finding reflects the previous grant cycle for 2022 grants and 2023 grants, which is prior to this action taken.

View Audit 381720

Finding 1169040 (2025-001)

Material Weakness 2025

River Forest Community School Corporation

IN

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.1 § 200.303 § 200.317 § 200.318 § 200.319

FINDING 2025-001 Finding Subject: Special Education Cluster (IDEA) - Procurement Contact Person Responsible for Corrective Action: Samantha Berrier Contact Phone Number and Email Address: 219-962-2909, sberrier@rfcsc.k12.in.us Views of Responsible Officials: We concur with the finding. Description o...

FINDING 2025-001 Finding Subject: Special Education Cluster (IDEA) - Procurement Contact Person Responsible for Corrective Action: Samantha Berrier Contact Phone Number and Email Address: 219-962-2909, sberrier@rfcsc.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The offices of the Northwest Indiana Special Education Cooperative (NISEC), on behalf of River Forest Community School Corporation, its member school, has implemented a corrective action plan to ensure that the proper methodology for procurement is followed. Additionally, a system of internal controls has been established to ensure that vendors are procured using the required methods. The Northwest Indiana Special Education Cooperative created a corrective action plan to develop procedures to obtain bids when any vendor will exceed the simplified acquisition threshold. As part of this corrective action plan they have included procedures to follow if a noncompetitive procurement would be applicable. These procedures include documenting the rationale for using this alternative method and requesting approval from the Board of School Trustees when doing so. Anticipated Completion Date: October 9th, 2024

View Audit 381719

Finding 1169029 (2025-002)

Material Weakness 2025

Detroit Regional Chamber Foundation, Inc.

MI

Procurement, Suspension & Debarment Allowable Costs / Cost Principles

2025-002 – Failure to Implement Required Written Policies Finding Type. Immaterial Noncompliance; Significant Deficiency in Internal Control over Compliance (Allowable Costs/Cost Principles and Cash Management). Program. Economic Development Cluster; Economic Adjustment Assistance; U.S. Department o...

2025-002 – Failure to Implement Required Written Policies Finding Type. Immaterial Noncompliance; Significant Deficiency in Internal Control over Compliance (Allowable Costs/Cost Principles and Cash Management). Program. Economic Development Cluster; Economic Adjustment Assistance; U.S. Department of Commerce; ALN 11.307; Passed through SEMCA; Award Number EDA-HDQ-ARPBBB-2021-2006976. Condition. There are no written policies in place covering payments or travel costs. Effect. As a result of this condition, the Foundation did not fully comply with the Uniform Guidance. Corrective Action Plan. Will document/implement payment policy including travel costs Contact Person Responsible. Jason Jurczyk, VP, Finance and Revenue Growth Anticipated Completion Date. January 2026

View Audit 381713

Finding 1169028 (2025-001)

Material Weakness 2025

Detroit Regional Chamber Foundation, Inc.

MI

Allowable Costs / Cost Principles Reporting Significant Deficiency

2025-001 – Lack of Independent Review and Approval of Reporting Finding Type. Immaterial noncompliance; Significant Deficiency in Internal Control over Compliance (Reporting). Program. Economic Development Cluster; Economic Adjustment Assistance; U.S. Department of Commerce; ALN 11.307; Passed throu...

2025-001 – Lack of Independent Review and Approval of Reporting Finding Type. Immaterial noncompliance; Significant Deficiency in Internal Control over Compliance (Reporting). Program. Economic Development Cluster; Economic Adjustment Assistance; U.S. Department of Commerce; ALN 11.307; Passed through SEMCA; Award Number EDA-HDQ-ARPBBB-2021-2006976. Condition. The Foundation is required to submit semi-annual reports on the grant expenditures, and we noted that these reports are not subjected to an independent review and approval process. Effect. Although no reporting errors were found, the Foundation was exposed to an increased risk that the reports filed could contain errors and not be detected and corrected on a timely basis. Corrective Action Plan. The monthly Financial Status Report will be reviewed by both the CFO and Senior Director, MichAuto before being submitted for reimbursement. Contact Person Responsible. Jason Jurczyk, VP, Finance and Revenue Growth Anticipated Completion Date. October 2025

View Audit 381713

Finding 1169027 (2025-005)

Material Weakness 2025

North Greene Unit School District No. 3

IL

Internal Control / Segregation of Duties

FINDINGS- MAJOR FEDERAL AWARD PROGRAMS Material Weakness U.S. DEPARTMENT OF AGRICULTURE- 2024 and 2025 Child Nutrition Cluster- AL Number 10.555, 10.553 Finding No.: 2025-005 Condition: The District's accounting function is controlled by a limited number of individuals resulting in the inadequate se...

FINDINGS- MAJOR FEDERAL AWARD PROGRAMS Material Weakness U.S. DEPARTMENT OF AGRICULTURE- 2024 and 2025 Child Nutrition Cluster- AL Number 10.555, 10.553 Finding No.: 2025-005 Condition: The District's accounting function is controlled by a limited number of individuals resulting in the inadequate segregation of duties. Recommendation: The District should segregate duties where possible. The Board should be aware of this issue and closely review and approve all financial related information. Action Taken: The District concurs with the recommendation. The District has reviewed and continues to review its financial policies and procedures to better segregate duties where possible. The Superintendent continually reminds the Board of their responsibility in regards to reviewing and approving financial items and asking questions. It is not cost feasible to hire additional personnel. Anticipated Date of Completion: Ongoing

View Audit 381702

Finding 1169025 (2025-004)

Material Weakness 2025

North Greene Unit School District No. 3

IL

Internal Control / Segregation of Duties

FINDINGS- MAJOR FEDERAL AWARD PROGRAMS Material Weakness U.S. DEPARTMENT OF EDUCATION- 2024 Elementary and Secondary School Emergency Relief Fund- AL Number 84.425 Finding No.: 2025-004 Condition: The District's accounting function is controlled by a limited number of individuals resulting in the in...

FINDINGS- MAJOR FEDERAL AWARD PROGRAMS Material Weakness U.S. DEPARTMENT OF EDUCATION- 2024 Elementary and Secondary School Emergency Relief Fund- AL Number 84.425 Finding No.: 2025-004 Condition: The District's accounting function is controlled by a limited number of individuals resulting in the inadequate segregation of duties. Recommendation: The District should segregate duties where possible. The Board should be aware of this issue and closely review and approve all financial related information. Action Taken: The District concurs with the recommendation. The District has reviewed and continues to review its financial policies and procedures to better segregate duties where possible. The Superintendent continually reminds the Board of their responsibility in regards to reviewing and approving financial items and asking questions. It is not cost feasible to hire additional personnel. Anticipated Date of Completion: Ongoing

View Audit 381702

Finding 1169018 (2025-001)

Material Weakness 2025

Hrca Brookline Housing 1550 Beacon Plaza Mark and Diane Goldman

MA

HUD Housing Programs

Condition: The Organization had cash balances that exceeded federally insured limits, and management did not monitor or maintain documentation of the financial institutions’ ratings Criteria: HUD guidelines require cash to be maintained in financial institutions that meet minimum GNMA ratings when b...

Condition: The Organization had cash balances that exceeded federally insured limits, and management did not monitor or maintain documentation of the financial institutions’ ratings Criteria: HUD guidelines require cash to be maintained in financial institutions that meet minimum GNMA ratings when balances exceed federally insured limits. Financial institution ratings are to be monitored by management on a quarterly basis, and documentation is to be maintained for at least three years as required by the HUD handbook 4350.1 Cause: The cause of this issue was the absence of established procedures requiring periodic review of cash balances exceeding federally insured limits and the lack of a documented process for monitoring and retaining financial institution rating information. Effect: There were no negative effects on the Organization. Action Plan: The Organization has maintained a strong partnership with our banking institution for several years, and this relationship continues to provide meaningful support to our residents and community. Management acknowledges that certain cash balances exceeded federally insured limits and that documentation of financial institution ratings was not consistently monitored or maintained. To address this, management will (1) evaluate opportunities to rebalance cash holdings to remain within insured limits where feasible, and (2) implement a formal process to review, document, and retain financial institution credit ratings on at least a quarterly basis. This process will be incorporated into the Organization’s ongoing treasury and risk-management procedures to ensure compliance going forward.

View Audit 381686

Finding 1169017 (2025-002)

Material Weakness 2025

Hrca Housing for Elderly, Inc. D/b/a Jack Satter House

MA

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

Criteria: HUD requires the Organization to maintain fidelity bond coverage of at least two months' cash collections Cause: Following completion of the 2025 Mark-to-Market process for HRCA Housing for Elderly Inc., we failed to update our fidelity bond coverage to reflect the revised requirements. Ac...

Criteria: HUD requires the Organization to maintain fidelity bond coverage of at least two months' cash collections Cause: Following completion of the 2025 Mark-to-Market process for HRCA Housing for Elderly Inc., we failed to update our fidelity bond coverage to reflect the revised requirements. Action Plan: Once the finding was identified, we immediately contacted our insurance broker and requested an increase to the fidelity bond coverage. The bond has since been raised to a $2M limit, and the updated policy became effective on 11/14/25. Going forward, the fiscal team will incorporate an annual verification of bond coverage into its routine monitoring procedures to ensure timely updates after significant organizational or regulatory changes. In addition, we are implementing an internal audit component to enhance our review of all HUD requirements. This added oversight will help mitigate future risk and ensure continued compliance with all applicable regulations.

View Audit 381685

Finding 1169016 (2025-001)

Material Weakness 2025

Hrca Housing for Elderly, Inc. D/b/a Jack Satter House

MA

HUD Housing Programs

Condition: The Organization had cash balances that exceeded federally insured limits, and management did not monitor or maintain documentation of the financial institutions’ ratings Criteria: HUD guidelines require cash to be maintained in financial institutions that meet minimum GNMA ratings when b...

Condition: The Organization had cash balances that exceeded federally insured limits, and management did not monitor or maintain documentation of the financial institutions’ ratings Criteria: HUD guidelines require cash to be maintained in financial institutions that meet minimum GNMA ratings when balances exceed federally insured limits. Financial institution ratings are to be monitored by management on a quarterly basis, and documentation is to be maintained for at least three years as required by the HUD handbook 4350.1 Cause: The cause of this issue was the absence of established procedures requiring periodic review of cash balances exceeding federally insured limits and the lack of a documented process for monitoring and retaining financial institution rating information. Effect: There were no negative effects on the Organization. Action Plan: The Organization has maintained a strong partnership with our banking institution for several years, and this relationship continues to provide meaningful support to our residents and community. Management acknowledges that certain cash balances exceeded federally insured limits and that documentation of financial institution ratings was not consistently monitored or maintained. To address this, management will (1) evaluate opportunities to rebalance cash holdings to remain within insured limits where feasible, and (2) implement a formal process to review, document, and retain financial institution credit ratings on at least a quarterly basis. This process will be incorporated into the Organization’s ongoing treasury and risk-management procedures to ensure compliance going forward.

View Audit 381685

Finding 1169015 (2025-003)

Material Weakness 2025

Rva Financial Federal Credit Union

VA

Cash Management Reporting Significant Deficiency § 200.305

DEPARTMENT OF THE TREASURY CDFI Equitable Recovery Program (CDFI ERP) – Assistance Listing No. 21.033 Recommendation: The Credit Union did not maintain supporting records to demonstrate that interest earned on unused funds held in interest-bearing accounts was remitted to the federal government, as ...

DEPARTMENT OF THE TREASURY CDFI Equitable Recovery Program (CDFI ERP) – Assistance Listing No. 21.033 Recommendation: The Credit Union did not maintain supporting records to demonstrate that interest earned on unused funds held in interest-bearing accounts was remitted to the federal government, as required by 2 C.F.R. § 200.305(b)(7). This deficiency appears to stem from a lack of formal procedures and oversight related to the handling of advance payments and interest earned on federal funds. To address this issue, we recommend that the Credit Union implement internal controls designed to ensure compliance with grant requirements, including procedures for tracking interest earned, verifying remittance to the federal government, and maintaining appropriate documentation to support these activities. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will implement grant compliance controls and maintain proper documentation. Name(s) of the contact person(s) responsible for corrective action: Cindy Lindsey, CEO Planned completion date for corrective action plan: December 2025

View Audit 381682

Finding 1169014 (2025-002)

Material Weakness 2025

Rva Financial Federal Credit Union

VA

Reporting Allowable Costs / Cost Principles Material Weakness § 200.303

DEPARTMENT OF THE TREASURY CDFI Equitable Recovery Program (CDFI ERP) – Assistance Listing No. 21.033 Recommendation: We recommend that the Credit Union strengthen its internal controls by implementing procedures for transaction-level tracking of federal grant expenditures, maintaining contemporaneo...

DEPARTMENT OF THE TREASURY CDFI Equitable Recovery Program (CDFI ERP) – Assistance Listing No. 21.033 Recommendation: We recommend that the Credit Union strengthen its internal controls by implementing procedures for transaction-level tracking of federal grant expenditures, maintaining contemporaneous documentation to support allowability, training staff on federal compliance requirements, and conducting periodic internal reviews to ensure documentation standards are consistently met. These actions will help address the lack of support noted in the original SEFA and ensure future submissions are fully auditable and compliant. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management has updated the SEFA to include only expenditures with appropriate supporting documentation and has taken steps to strengthen internal controls. Name(s) of the contact person(s) responsible for corrective action: Cindy Lindsey, CEO Planned completion date for corrective action plan: December 2025

View Audit 381682

Finding 1169013 (2025-001)

Material Weakness 2025

Housing Alliance and Community Partnership

ID

HUD Housing Programs Subrecipient Monitoring

HACP has implemented the following corrective actions: Continued oversight of two current inspectors to ensure compliance with HQS and federal regulations; Retention of a Compliance Coordinator to oversee inspection processes and documentation; implementation of improved documentation standards rela...

HACP has implemented the following corrective actions: Continued oversight of two current inspectors to ensure compliance with HQS and federal regulations; Retention of a Compliance Coordinator to oversee inspection processes and documentation; implementation of improved documentation standards related to inspections, re-inspections, and abatements; Regular file audits conducted by the ED or Deputy Director to verify timely rescheduling and enforcement of rent abatements.

View Audit 381681

Finding 1169012 (2025-001)

Material Weakness 2025

Tandem Health Sc

SC

Reporting Program Income Subrecipient Monitoring

HIV Formula Care Grant (AL93.917) - Significant Deficiency 2025-001 Management agrees with the finding and will enhance the current processes. Subsequent to year end, management created a tool to ensure all elements of program income, as well as related expenses incurred, are properly tracked, repor...

HIV Formula Care Grant (AL93.917) - Significant Deficiency 2025-001 Management agrees with the finding and will enhance the current processes. Subsequent to year end, management created a tool to ensure all elements of program income, as well as related expenses incurred, are properly tracked, reported, and utilized in accordance with federal requirements. Additionally, written policies are being drafted to reflect these procedures. Implementation is expected by January 31, 2026.

View Audit 381668

Finding 1169011 (2025-001)

Material Weakness 2025

United Way of Metropolitan Dallas

TX

Procurement, Suspension & Debarment Subrecipient Monitoring Reporting

The grant accounting team will create grant abstracts summarizing compliance requirements and key dates. These will then be added to the accounting department’s comprehensive checklist to ensure proper reporting guidelines are met on time. This will be completed by December 31, 2025 The grant accoun...

The grant accounting team will create grant abstracts summarizing compliance requirements and key dates. These will then be added to the accounting department’s comprehensive checklist to ensure proper reporting guidelines are met on time. This will be completed by December 31, 2025 The grant accounting Team will submit information on first-tier subawards to SAM.gov for eligible grants by December 31, 2025.

View Audit 381666

Finding 1168977 (2025-001)

Material Weakness 2025

Converse University

SC

Student Financial Aid Reporting

Enrollment Reporting - Withdrawal Corrective Action Plan Issue Identified: An enrollment reporting error occurred due to a student’s withdrawal date not being transmitted to the National Student Loan Data System (NSLDS). The student submitted a withdrawal form after the last enrollment file for the ...

Enrollment Reporting - Withdrawal Corrective Action Plan Issue Identified: An enrollment reporting error occurred due to a student’s withdrawal date not being transmitted to the National Student Loan Data System (NSLDS). The student submitted a withdrawal form after the last enrollment file for the semester had been reported to the National Student Clearinghouse (NSC). Upon receipt, the withdrawal date was entered retroactively as the final day of the semester. Because the semester had already been reported, the withdrawal was not included until the subsequent first-ofterm enrollment report, resulting in a reporting delay that exceeded the 60-day submission requirement. Corrective Action Taken: The University Registrar consulted with the National Student Clearinghouse to verify the appropriate process for reporting withdrawals received after the final enrollment submission for a term. Based on this guidance, the following corrective measures have been implemented: 1. Manual Reporting of Late Withdrawals: If a withdrawal form is received after the final enrollment file for a term has been submitted, the Registrar’s Office will manually update NSC with the correct withdrawal date. 2. Implementation Date: This procedure became effective at the beginning of the Fall 2025 semester. 3. Ongoing Compliance: The Registrar’s Office will continue to submit timely and accurate enrollment reports to NSLDS, ensuring that all changes to student enrollment status are reported within required federal deadlines. Responsible Office: The Office of the Registrar, under the direct supervision of the University Registrar, is responsible for the implementation, monitoring, and ongoing adherence to this corrective action plan. Enrollment Reporting - Graduation Corrective Action Plan Issue Identified: A reporting error occurred in which a student’s graduation date did not appear in the National Student Loan Data System (NSLDS). The discrepancy was caused by the graduation date being recorded as the commencement date of May 17, 2025, while the official semester end date was May 15, 2025.The final enrollment file was submitted to the National Student Clearinghouse (NSC) on May 15, 2025, prior to the entry of the graduation date, resulting in the omission from the report. Corrective Action Taken: The University Registrar reviewed the reporting procedures and determined that graduation dates must align with the official academic calendar, specifically the last day of class for the semester. To ensure compliance, the following measures have been implemented: 1. Standardization of Graduation Dates: All future graduation dates will be recorded as the official last day of class for the semester, rather than the commencement ceremony date. 2. Adjustment of Final Reporting Timeline: The final enrollment report for each term will not be submitted until all graduation records have been updated in the system to ensure accurate transmission to NSC and NSLDS. 3. Implementation Date: This procedure is effective beginning with the Fall 2025 and Spring 2026 graduation reporting cycle. 4. Ongoing Compliance: The Registrar’s Office will continue to monitor reporting practices to ensure all graduation and enrollment data are transmitted to NSLDS in accordance with federal reporting requirements. Responsible Office: The Office of the Registrar, under the direct supervision of the University Registrar, is responsible for the implementation, oversight, and continued compliance of this corrective action plan. Shannon Bishop Shannon.bishop@converse.edu University Registrar

View Audit 381647

Finding 1168969 (2025-003)

Material Weakness 2025

Niobrara County School District No. 1

WY

Internal Control / Segregation of Duties Procurement, Suspension & Debarment

December 16, 2025 To Whom it May Concern: This letter is in response to the audit findings identified in the annual district financial report for fiscal year ended June 30, 2025 issued by Leo Riley & Co. This le er addresses the following compliance findings: 2025-001 Separa on of Du es The district...

December 16, 2025 To Whom it May Concern: This letter is in response to the audit findings identified in the annual district financial report for fiscal year ended June 30, 2025 issued by Leo Riley & Co. This le er addresses the following compliance findings: 2025-001 Separa on of Du es The district is unable to assign a different person to each stage of the transac on cycle due to the lack of personnel. The district will brief new Trustees on their role in internal control and stress the importance of their oversight responsibili es. In addi on, the district will consider providing training on detec ng abuse and fraud as well as ordering printed materials for distribu on to Trustees. 2025-002 Budget Noncompliance The district is aware that the budget was exceeded and has implemented procedures to monitor and amend the budget in accordance with Wyoming State Statute. 2025-003 Separation of Duties The district is unable to assign a different person to each stage of the transac on cycle due to the lack of personnel. The district will brief new Trustees on their role in internal control and stress the importance of their oversight responsibili es. In addi on, the district will consider providing training on detec ng abuse and fraud as well as ordering printed materials for distribu on to Trustees. Sincerely, Katie Redmann Business Manager

View Audit 381609

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