Corrective Action Plans

Finding 1217291 (2025-001)

Material Weakness 2025

TX

Internal Control / Segregation of Duties Questioned Costs Subrecipient Monitoring

Finding 2025-001: Reporting – Material weakness in internal controls over compliance and compliance finding. Management Response Effective May 12, 2026, the agency enhanced its performance reporting oversight by requiring the Chief of Mission and the Executive Vice President of Victim Services to re...

Finding 2025-001: Reporting – Material weakness in internal controls over compliance and compliance finding. Management Response Effective May 12, 2026, the agency enhanced its performance reporting oversight by requiring the Chief of Mission and the Executive Vice President of Victim Services to review and approve preliminary reports to funding entities drafted by the compliance department, prior to submission. The agency’s compliance department, which consists of a Database Manager, Compliance Manager, and Executive Vice President of Compliance, is tasked with ensuring reliability and validity of client-level database entered in the client database. Monthly, the agency’s compliance department reconciles the number of new and unduplicated participants served by the agency as a whole and within each grant-funded program. The compliance department’s report originator will save the source data electronically, ensuring it matches the official figures submitted to the funding entity. Source data reports will be available upon request by agency staff and/or funders.

View Audit 403455

Finding 1217279 (2025-002)

Material Weakness 2025

CITY OF PROSPECT HEIGHTS

IL

Subrecipient Monitoring Internal Control / Segregation of Duties

Corrective Action Plan Finding No: 2025-002 Condition: During the audit, the City did not verify that the contractor or subcontractor submitted the required certified payrolls for work performed under the federally assisted construction contract. As a result, the City did not maintain or review suff...

Corrective Action Plan Finding No: 2025-002 Condition: During the audit, the City did not verify that the contractor or subcontractor submitted the required certified payrolls for work performed under the federally assisted construction contract. As a result, the City did not maintain or review sufficient documentation to demonstrate compliance with wage rate requirements for all applicable weeks during the audit period. Management’s Plan: The City recognizes the need to improve internal controls related to grant disbursements for labor provided by our contractors. The project this past year included participation from multiple federal funding agencies and payments by the City as well as direct payments to contractors by the funding agencies. We have already added additional procedures and checkpoints to provide for adequate documentation related to certified payrolls. In addition, the City is planning to procure a grant tracking system to automate tracking the details for every project. Anticipated Date of Completion: 12/31/26 Name of Contact Person: Cheri Grieco, Finance Director

View Audit 403433

Finding 1217278 (2025-001)

Material Weakness 2025

CITY OF PROSPECT HEIGHTS

IL

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Corrective Action Plan Finding No: 2025-001 Condition: During the audit, our procedures indicated that capital expenditures were primarily reviewed at an individual invoice level to determine whether they exceeded the capitalization threshold. We also noted that communication between the City’s fina...

Corrective Action Plan Finding No: 2025-001 Condition: During the audit, our procedures indicated that capital expenditures were primarily reviewed at an individual invoice level to determine whether they exceeded the capitalization threshold. We also noted that communication between the City’s finance department and engineers or other City staff responsible for managing grants and capital projects is not consistently formalized. Management’s Plan: Management is committed to strengthening coordination and oversight of the City’s grant-funded capital projects through centralizing project tracking via grant/project management software, implementing rigorous compliance monitoring, and improving intradepartmental communication. By centralizing our grants through the course of their lifespans, we intend to better track the progress of our grant projects and budgets and with the inclusion of grant document storage, to enhance compliance across departments. We will also designate coordination teams consisting of liaisons across administration, finance, engineering, public works, and grant writers to ensure internal alignment. Anticipated Date of Completion: 4/30/2027 Name of Contact Person: Cheri Grieco, Finance Director

View Audit 403433

Finding 1217269 (2025-001)

Material Weakness 2025

YMCA of Greater Louisville, Inc.

KY

Reporting Internal Control / Segregation of Duties

The YMCA and Affiliates’ have begun enhancing internal controls related to the reporting process through additional staff training, increased cross-training of personnel responsible for report preparation and submission, and the development of more formalized review procedures. Management has also r...

The YMCA and Affiliates’ have begun enhancing internal controls related to the reporting process through additional staff training, increased cross-training of personnel responsible for report preparation and submission, and the development of more formalized review procedures. Management has also reinforced expectations regarding reporting requirements and completeness prior to submission. These actions are intended to further strengthen consistency and oversight within the reporting process while building upon controls already in place.

View Audit 403430

Finding 1217267 (2025-002)

Material Weakness 2025

PRESERVATION TRUST OF VERMONT, INC.

VT

Questioned Costs Allowable Costs / Cost Principles Significant Deficiency § 200.303 § 200.508

The Organization acknowledges and concurs with the auditor’s finding as discussed within the Schedule of Findings and Questioned Costs for the year-ended September 30, 2025. During the audit for PTV’s fiscal year 2025, it was determined that we should add an additional layer of confirmation to our a...

The Organization acknowledges and concurs with the auditor’s finding as discussed within the Schedule of Findings and Questioned Costs for the year-ended September 30, 2025. During the audit for PTV’s fiscal year 2025, it was determined that we should add an additional layer of confirmation to our approval process. Currently, the President reviews invoices prior to signing the checks, thereby signaling approval. Moving forward, in addition to this review, the President will also confirm approval by initialing the invoice itself. Beyond this initial next step, PTV will also review its current Fiscal Policy to consider implementation of an approval process that allows other authorized approvers the authority to review expenses up to certain thresholds. Policy development at this level requires Finance Committee involvement and full Board approval, so it may take several months to fully implement a new process. We appreciate the opportunity to continue to strengthen PTV’s internal controls and financial operations.

View Audit 403427

Finding 1217265 (2025-001)

Material Weakness 2025

PRESERVATION TRUST OF VERMONT, INC.

VT

Allowable Costs / Cost Principles Reporting Significant Deficiency

The Organization acknowledges and concurs with the auditor’s finding as discussed within the Schedule of Findings and Questioned Costs for the year-ended September 30, 2025. During the audit for PTV’s fiscal year 2025, it was determined that we should add an additional layer of confirmation to our a...

The Organization acknowledges and concurs with the auditor’s finding as discussed within the Schedule of Findings and Questioned Costs for the year-ended September 30, 2025. During the audit for PTV’s fiscal year 2025, it was determined that we should add an additional layer of confirmation to our approval process. Currently, the President reviews invoices prior to signing the checks, thereby signaling approval. Moving forward, in addition to this review, the President will also confirm approval by initialing the invoice itself. Beyond this initial next step, PTV will also review its current Fiscal Policy to consider implementation of an approval process that allows other authorized approvers the authority to review expenses up to certain thresholds. Policy development at this level requires Finance Committee involvement and full Board approval, so it may take several months to fully implement a new process. We appreciate the opportunity to continue to strengthen PTV’s internal controls and financial operations.

View Audit 403427

Finding 1217264 (2025-002)

Material Weakness 2025

Maple City Health Care Center, Inc.

IN

Procurement, Suspension & Debarment

2025-002 PROCUREMENT, SUSPENSION & DEBARMENT Condition: The Organization did not comply with the Davis-Bacon prevailing wage requirement Recommendation: The Organization executed the contract in question in June 2024, and the related project was completed in April 2025. The Organization's 2024 audit...

2025-002 PROCUREMENT, SUSPENSION & DEBARMENT Condition: The Organization did not comply with the Davis-Bacon prevailing wage requirement Recommendation: The Organization executed the contract in question in June 2024, and the related project was completed in April 2025. The Organization's 2024 audit was not issued until May 2025. Consequently, the Organization was not aware of the Davis-Bacon Act applicability during the period of contract execution and project performance and therefore did not have the opportunity to amend the contract to incorporate the Davis-Bacon Act requirements. In response to the findings identified in the prior year audit, the Organization has since implemented new policies and procedures to ensure timely identification of applicable compliance requirements for future contracts. Corrective Action Plan: The Director of Finance/CFO prepared a summary document regarding the federal guidelines on procurement, in particular highlighting this requirement concerning the Davis- Bacon act. Contact Person Responsible: Interim Director of Finance /CFO Completion date: June 30, 2025

View Audit 403417

Finding 1217263 (2025-001)

Material Weakness 2025

Maple City Health Care Center, Inc.

IN

Procurement, Suspension & Debarment Eligibility § 200.214

2025-001 PROCUREMENT, SUSPENSION & DEBARMENT Condition: We identified an instance where the Organization did not verify the suspension and debarment status of a vendor prior to awarding the vendor a federal contract. Documentation of verification through SAM.gov or equivalent methods could not be pr...

2025-001 PROCUREMENT, SUSPENSION & DEBARMENT Condition: We identified an instance where the Organization did not verify the suspension and debarment status of a vendor prior to awarding the vendor a federal contract. Documentation of verification through SAM.gov or equivalent methods could not be provided by management. Subsequent review of SAM.gov indicated no instances of suspended or debarred vendors used on the project funded with federal awards. Recommendation: We recommend the Organization ensure the staff involved with procuring contracts using federal awards are aware of the federal requirement, including the already established policies that the Organization has regarding such requirements. Corrective Action Plan: The contract associated with this finding was signed on January 24, 2025, before the 2024 financial audit was finished, so before the organization made changes to their procurement policy. Since then, the organization has reviewed its existing procurement policy, and updated it as necessary and will ensure that for future projects, the procurement policy will be carefully followed, including verification through SAM.gov. Staff involved in projects and procurement will receive training regarding the policies and the federal guidelines for federally funded projects. Contact Person Responsible: Interim Director of Finance /CFO Completion date: June 30, 2025

View Audit 403417

Finding 1217262 (2025-004)

Material Weakness 2025

Clay Local School District

OH

Cash Management Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.302 § 200.303

Utilize the snack count option within the Payschools program to obtain accurate counts. Cafeteria manager will go over the numbers before certifying for submission.

View Audit 403412

Finding 1217260 (2025-002)

Material Weakness 2025

Cabrini of Westchester

NY

Questioned Costs HUD Housing Programs Significant Deficiency

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Supportive Housing for the Elderly Section 232 ALN Number: 14.129 Award Period: Year Ended December 31, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria ...

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Supportive Housing for the Elderly Section 232 ALN Number: 14.129 Award Period: Year Ended December 31, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: HUD requires a signed management fee agreement when such transactions take place. Condition: Unallowed related party transactions were identified in 2025. Context: Affiliate dues were booked to the Home's cash clearing account as a credit for $400,000 with the understanding that these fees would qualify as a service contract rather than a management fee. However, due to the cash infused into the program by The Carmelite System, the $400,000 will not be noted as questioned costs needing to be repaid into the project. Recommendation: The Home should adhere to the Regulatory Agreement and obtain HUD’s approval prior to taking any actions specifically precluded in the Regulatory Agreement. Action taken in response to finding: There is no disagreement with the audit finding. Management will work to obtain proper approval going forward. If the U.S. Department of Housing and Urban Development has questions regarding this schedule, please call Corrinne Schindler at 518-537-7500 or CSchindler@CarmeliteSystem.org.

View Audit 403406

Finding 1217259 (2025-001)

Material Weakness 2025

Cabrini of Westchester

NY

Questioned Costs HUD Housing Programs Material Weakness

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Supportive Housing for the Elderly Section 232 ALN Number: 14.129 Award Period: Year Ended December 31, 2025 Type of Finding: • Material Weakness in Internal Control over Compliance • Other Matters Criteria or sp...

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Supportive Housing for the Elderly Section 232 ALN Number: 14.129 Award Period: Year Ended December 31, 2025 Type of Finding: • Material Weakness in Internal Control over Compliance • Other Matters Criteria or specific requirement: The Home was required to obtain written approval for the member substitution transaction with The Carmelite System, Inc. prior to closing. Condition: Membership transfer agreements must be in place and signed by HUD during the transition of Ownership / Governance. Context: Formal HUD approval was not obtained in relation the Member Substitution in which the Carmelite System, Inc. became the sole member and sponsor of the Home. Recommendation: The Home should adhere to the Regulatory Agreement and obtain HUD’s approval prior to taking any actions specifically precluded in the Regulatory Agreement. Action taken in response to finding: There is no disagreement with the audit finding. Management is working to obtain the necessary HUD approvals.

View Audit 403406

Finding 1217251 (2025-001)

Material Weakness 2025

Plumas-Sierra Rural Electric Cooperative

CA

Allowable Costs / Cost Principles Subrecipient Monitoring Significant Deficiency

Management agrees with the finding and acknowledges that internal controls over inventory issuance were not consistently followed by an individual. While procedures existed requiring documentation of pick tickets, compliance with these procedures was not adequately enforced on a small number of tran...

Management agrees with the finding and acknowledges that internal controls over inventory issuance were not consistently followed by an individual. While procedures existed requiring documentation of pick tickets, compliance with these procedures was not adequately enforced on a small number of transactions. The Cooperative has begun strengthening its internal control processes to ensure that all inventory withdrawals are properly authorized and documented prior to release. In addition, management will implement monitoring procedures, including periodic reviews of inventory documentation, to ensure compliance with established controls. Training will also be provided to all relevant personnel to reinforce proper procedures and the importance of adherence to internal control requirements. Management expects these corrective actions to be fully implemented by May 15, 2026.

View Audit 403394

Finding 1217240 (2025-005)

Material Weakness 2025

Community Health Improvement Center, Inc. D/b/a Crossing Healthcare

IL

Questioned Costs Reporting Internal Control / Segregation of Duties § 200.329

Finding summary – The Organization’s annual UDS report was selected for testing. Of the ten inputs tested, four exceptions were noted as the Organization was unable to provide supporting documentation that agreed to the line items tested on the report. Corrective Action Planned - Management has enga...

Finding summary – The Organization’s annual UDS report was selected for testing. Of the ten inputs tested, four exceptions were noted as the Organization was unable to provide supporting documentation that agreed to the line items tested on the report. Corrective Action Planned - Management has engaged with an independent 3rd party accounting firm to review current processes, assist with strengthening internal controls and month-end/year-end closing procedures, and provide assistance in completing the Organization’s annual UDS report. Anticipated Completion Date – Completed 1/1/2026 Responsible Contact Person – Margret Guy, Director of Revenue; Julie Brilley, CEO Management Response - Management concurs with the auditor's finding. The Organization acknowledges that a mistake was made on Table 9E-Other Revenue, where grant income, from the Early Childhood Development (ECD) grant, was listed in the incorrect location. The ECD grant should have been listed under Federal Grants: UHI Grant Revenue. Additionally, the Organization’s UDS preparer, completed a transposition error when entering a salary amount in Table 8A.

View Audit 403385

Finding 1217239 (2025-004)

Material Weakness 2025

Community Health Improvement Center, Inc. D/b/a Crossing Healthcare

IL

Questioned Costs Special Tests & Provisions Subrecipient Monitoring

Finding summary – Patients received sliding fee discounts that were inconsistent with the stated sliding fee discount categories under the Organization’s policy. Corrective Action Planned – 1. Crossing has implemented a billing workflow to automatically apply sliding fee scale discounts to all eligi...

Finding summary – Patients received sliding fee discounts that were inconsistent with the stated sliding fee discount categories under the Organization’s policy. Corrective Action Planned – 1. Crossing has implemented a billing workflow to automatically apply sliding fee scale discounts to all eligible self-pay accounts during the billing process, eliminating manual charge adjustments and improving consistency with established guidelines. 2. All billing staff have received retraining on the correct manual posting procedures for sliding fee scale adjustments after insurance payment, ensuring compliance with patient income verification and applicable percentage guidelines. 3. We will continue ongoing monitoring and review of accounts receiving sliding fee scale adjustments to ensure accurate and compliant application of the approved discount and percentages. Anticipated Completion Date – Completed 4/1/2026 Responsible Contact Person – Margret Guy, Director of Revenue; Julie Brilley, CEO Management Response - Management concurs with the auditor's finding. The Organization acknowledges that patients received sliding fee discounts that were inconsistent with the stated sliding fee discount categories under the Organization’s policy. The corrective action plan has been successfully implemented and will be monitored regularly to ensure compliance.

View Audit 403385

Finding 1217238 (2025-003)

Material Weakness 2025

Community Health Improvement Center, Inc. D/b/a Crossing Healthcare

IL

Cash Management § 200.305

Finding summary – The Organization’s internal controls over the cash drawdown process were not operating effectively to minimize the time elapsing between the transfer of funds to the Organization from the U.S. Treasury and the issuance of payments for program purposes to the Organization. Correctiv...

Finding summary – The Organization’s internal controls over the cash drawdown process were not operating effectively to minimize the time elapsing between the transfer of funds to the Organization from the U.S. Treasury and the issuance of payments for program purposes to the Organization. Corrective Action Planned – Designated Crossing Healthcare staff will submit cash draw down requests no more than 5 business days prior to the anticipated pay date for the pay period claimed. Anticipated Completion Date – Completed 5/7/2026 Responsible Contact Person – Julie Brilley, CEO Management Response - Management concurs with the auditor's finding. The Organization acknowledges that the cash drawdown process was not operating effectively to minimize the time lapsing between the transfer of funds to the Organization from the U.S. Treasury and the issuance of payments for program purposes to the Organization. Management has developed a corrective action plan, including a dedicated schedule listing Organization pay periods, pay dates, appropriate fund draw dates, and funding draw amounts.

View Audit 403385

Finding 1217234 (2025-008)

Material Weakness 2025

MIDLOTHIAN VILLAGE OF

IL

Procurement, Suspension & Debarment § 200.318

2025-008: Procurement Policy Condition: We noted that the Village does not have a documented procurement policy in place as required by 2 CFR 200.318. No instances of noncompliance were identified in the procurement transactions tested. Corrective Action Planned: A purchasing and procurement policy ...

2025-008: Procurement Policy Condition: We noted that the Village does not have a documented procurement policy in place as required by 2 CFR 200.318. No instances of noncompliance were identified in the procurement transactions tested. Corrective Action Planned: A purchasing and procurement policy was created and discussed at the May 2026 finance committee meeting and approved by the board in May 2026. Name of the Contact Person Responsible for Corrective Action: finance department Anticipated Completion Date: May 2026

View Audit 403376

Finding 1217233 (2025-004)

Material Weakness 2025

CITY OF DAYTON

MN

Questioned Costs Material Weakness Internal Control / Segregation of Duties

Community Project Funding (CFP) Program – Assistance Listing No. 14.251 Recommendation: We recommend the City ensure environmental review requirements are completed and documented prior to incurring any project-related expenditures for the Community Project Funding program. The City should continue ...

Community Project Funding (CFP) Program – Assistance Listing No. 14.251 Recommendation: We recommend the City ensure environmental review requirements are completed and documented prior to incurring any project-related expenditures for the Community Project Funding program. The City should continue to maintain procedures designed to prevent project activities from beginning before environmental review requirements are satisfied. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: City management noted that procedures have been implemented for this grant, including a memorandum of understanding that is annually reaffirmed by the City Council, to ensure environmental review requirements are completed prior to incurring project expenditures and to prevent similar occurrences in the future.. Name of the contact person responsible for corrective action: Zach Doug Planned completion date for corrective action plan: December 31, 2026

View Audit 403370

Finding 1217232 (2025-003)

Material Weakness 2025

CITY OF DAYTON

MN

Internal Control / Segregation of Duties Questioned Costs Material Weakness § 200.303

Community Project Funding (CFP) Program – Assistance Listing No. 14.251 Recommendation: We recommend the City implement procedures to ensure appropriate internal controls over compliance related to reporting, including documentation of review and approval of all required reports by someone other tha...

Community Project Funding (CFP) Program – Assistance Listing No. 14.251 Recommendation: We recommend the City implement procedures to ensure appropriate internal controls over compliance related to reporting, including documentation of review and approval of all required reports by someone other than the preparer prior to submission. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: City management acknowledges that limited staffing and experience constrain segregation of duties; however, the City will evaluate and implement procedures to improve documentation of review and approval of required reports for the Community Project Funding program. Name of the contact person responsible for corrective action: Zach Doug Planned completion date for corrective action plan: December 31, 2026

View Audit 403370

Finding 1217231 (2025-002)

Material Weakness 2025

CITY OF DAYTON

MN

Procurement, Suspension & Debarment § 200.214

Community Project Funding (CFP) Program – Assistance Listing No. 14.251 Recommendation: We recommend the City formalize suspension and debarment compliance procedures in a written policy and ensure verification is performed and documented for all covered transactions prior to entering into contracts...

Community Project Funding (CFP) Program – Assistance Listing No. 14.251 Recommendation: We recommend the City formalize suspension and debarment compliance procedures in a written policy and ensure verification is performed and documented for all covered transactions prior to entering into contracts funded by Community Project Funding. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The City will develop and adopt a written policy addressing suspension and debarment requirements applicable to federal programs, including Community Project Funding. The policy will define required verification procedures and documentation standards. City staff will perform and retain evidence of suspension and debarment verification for all covered transactions prior to entering into federally funded contracts. Name of the contact person responsible for corrective action: Zach Doud Planned completion date for corrective action plan: December 31, 2026

View Audit 403370

Finding 1217230 (2025-002)

Material Weakness 2025

Ocala Housing Authority

FL

HUD Housing Programs Internal Control / Segregation of Duties

2025-002 Housing Choice Voucher Tenant Files: Eligibility Program: U.S. Department of HUD: Section 8 Housing Choice Vouchers (ALN #14.871) Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters This is a repeat finding of 2024-003 from September 30, 2024 (Original...

2025-002 Housing Choice Voucher Tenant Files: Eligibility Program: U.S. Department of HUD: Section 8 Housing Choice Vouchers (ALN #14.871) Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters This is a repeat finding of 2024-003 from September 30, 2024 (Originally reported as Material non-compliance and Material Weakness in Internal Control over Compliance under finding 2019-001 from September 30, 2019) Statement of Condition: Out of a total tenant population of approximately 1,086 leased vouchers, 25 files were selected for testing, and the following errors were discovered. • 1 tenant file where the tenant's utility allowance was miscalculated and reported incorrectly on the 50058 form. Correcting this error would decrease the HAP rent by $26. • 1 tenant file where the tenant's utility allowance was miscalculated and reported incorrectly on the 50058 form. Correcting this error would decrease the HAP rent by $23. • 1 tenant file where the tenant's income was miscalculated and reported incorrectly on the 50058 form. Correcting this error would decrease the HAP rent by $266. • 1 tenant file where the tenant's income was miscalculated and reported incorrectly on the 50058 form. Correcting this error would decrease the HAP rent by $40. • 1 tenant file where the tenant's income was miscalculated and reported incorrectly on the 50058 form. Correcting this error would decrease the HAP rent by $318. • 1 tenant file where the tenant’s utility allowance and income was miscalculated and reported incorrectly on the 50058 form. Correcting this error would decrease the HAP rent by $121. • 1 tenant file where the tenant’s income was miscalculated but did not impact the HAP rent. • 1 tenant file where the tenant’s wage income was coded incorrectly as federal income on the 50058 form. Recommendation: The Authority should correct the deficiencies noted in the tested files and utilize an ongoing quality control review process on the entire tenant population to ensure proper compliance with the requirements related to tenant eligibility. Ongoing staff training and timely management reviews should be utilized to ensure staff is aware of acceptable procedures. In addition, the Authority should review staffing levels, skill sets and case load. Action Taken: The Authority has corrected all deficiencies identified in the files reviewed during the audit. To further strengthen compliance and reduce the likelihood of future errors, several corrective actions have been implemented. The Authority has enhanced its quality control procedures by implementing a systematic file review process. At a minimum, every fifth file processed receives a quality control review to verify the accuracy of third-party verifications, income determinations, utility allowance, and subsidy calculations. In addition, management conducts monthly reviews of at least ten percent (10%) of each Housing Counselor's annual recertifications, with the percentage increased as warranted based on performance trends or identified deficiencies. The HCV Program Manager also reviews a minimum of one out of every five intake files, while all new admissions and move-in files are reviewed by the Compliance Director prior to approval. The Compliance Director additionally conducts monthly compliance reviews of a ten percent (10%) sample of processed files. To improve consistency and reduce calculation errors, the Authority developed and implemented a Family Worksheet and an HCV Computation Worksheet. These tools assist staff in verifying household composition, income calculations, and subsidy determinations prior to the completion of annual reexaminations and interim recertifications. The Authority has also revised its filing system to facilitate more comprehensive reviews of participant documentation during admissions, annual recertifications, and interim adjustments. To ensure compliance with citizenship and eligibility requirements, the Authority created an “Other Adult” packet that includes Form HUD-214 declarations and other required documentation for all adult household members. In addition, HCV Counselor caseloads have been redistributed equitably to improve efficiency, workload management, and accuracy. Caseloads are assigned alphabetically and by multifamily developments, allowing management to more effectively monitor performance, identify training needs, and provide targeted oversight where necessary. Specialty voucher programs, including Emergency Housing Vouchers (EHV), Veterans Affairs Supportive Housing (VASH), Family Unification Program (FUP), and Homeownership vouchers, have been assigned to a dedicated Counselor with specialized training, experience, and responsibility for those programs. Management of all Family Self-Sufficiency (FSS) participants has been assigned exclusively to the FSS Coordinator. To strengthen the admissions process, the Authority established an Intake Housing Counselor/Portability Specialist position responsible for determining applicant eligibility, managing the waiting list, and processing portability clients. While the Authority has experienced significant turnover in this position, including three staff changes within the past two years, management recognizes the challenges associated with onboarding and training new staff and has taken steps to improve oversight and support during transition periods. The Authority has also experienced significant turnover within the HCV Department over the past twenty-four months. All current HCV Counselors, with the exception of the newest Intake Counselor, have less than six months of tenure and were not members of the HCV team during the FY 2025 audit period. To ensure staff are fully equipped to administer the program in accordance with HUD requirements, all HCV Counselors will participate in formal external training through Nan McKay & Associates within the next six months, supplemented by ongoing internal training, mentoring, and supervisory review. The Authority believes these corrective actions significantly strengthen internal controls and program oversight and demonstrates its commitment to continuous improvement, regulatory compliance, and the accurate administration of the Housing Choice Voucher Program.

View Audit 403369

Finding 1217223 (2025-003)

Material Weakness 2025

School Board City of Richmond

VA

Questioned Costs Significant Deficiency Internal Control / Segregation of Duties

Views of Responsible Officials and Planned Corrective Action: Responsible officials acknowledge the finding and agree that documentation supporting student removals from the adjusted cohort was not maintained timely in all instances. Management stated that it will implement enhanced procedures and s...

Views of Responsible Officials and Planned Corrective Action: Responsible officials acknowledge the finding and agree that documentation supporting student removals from the adjusted cohort was not maintained timely in all instances. Management stated that it will implement enhanced procedures and supervisory review processes to ensure required documentation is obtained and retained timely for all applicable students going forward.

View Audit 403361

Finding 1217222 (2025-002)

Material Weakness 2025

Heart of Kansas Family Health Care, Inc.

KS

Reporting § 200.512

Heart of Kansas is going to implement a timeline for future audits. The year end is Febuary. HOK will wrap up year-end postings and adjustments with a goal to be completed by May 30th. HOK will then have Forvis Mazars Group (consultants) review end of year postings and adjustments for accuracy. The ...

Heart of Kansas is going to implement a timeline for future audits. The year end is Febuary. HOK will wrap up year-end postings and adjustments with a goal to be completed by May 30th. HOK will then have Forvis Mazars Group (consultants) review end of year postings and adjustments for accuracy. The review process will have a completion date of June 15th. HOK will then target July/August as a month for Pinon Global to complete the audit.

View Audit 403360

Finding 1217220 (2025-001)

Material Weakness 2025

Jumpstart for Young Children, Inc.

MA

Cash Management Internal Control / Segregation of Duties

CORRECTIVE ACTION PLAN June 1, 2026 AmeriCorps Jumpstart For Young Children, Inc. respectfully submits the following corrective action plan for the year ended August 31, 2025. Name and address of independent public accounting firm: AAFCPAs, Inc. 50 Washington Street, Westborough, MA 01581 Audit peri...

CORRECTIVE ACTION PLAN June 1, 2026 AmeriCorps Jumpstart For Young Children, Inc. respectfully submits the following corrective action plan for the year ended August 31, 2025. Name and address of independent public accounting firm: AAFCPAs, Inc. 50 Washington Street, Westborough, MA 01581 Audit period: September 1, 2024 – August 31, 2025 The findings from the August 31, 2025 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FEDERAL AWARD FINDING Material Weakness 2025-001 Assistance Listing Number 94.006 AmeriCorps State and National Program – Cash Management Recommendation: We recommend that Jumpstart enhance its oversight and cash management procedures to ensure that drawdowns under cost-reimbursement awards are supported by incurred allowable costs and limited to immediate cash needs. Action Taken: Jumpstart for Young Children acknowledges this finding and concurs with the recommendation. Jumpstart will strengthen its oversight and cash management procedures for cost-reimbursable Federal awards; specifically, Jumpstart will implement a formal review and approval process requiring that drawdown requests be supported by documentation of incurred, allowable expenditures and limited to immediate cash needs prior to submission. This process will be incorporated into Jumpstart’s internal controls documentation and communicated to relevant finance staff. Implementation will be completed by August 31, 2026. If the Cognizant or Oversight Agency for Audit has questions regarding this plan, please contact Jess Bryson, Head of Strategic Finance & Partnerships and Controller at jess.bryson@jstart.org. Sincerely yours, Crystal Rountree CEO

View Audit 403358

Finding 1217216 (2025-003)

Material Weakness 2025

City of McDonough

GA

Procurement, Suspension & Debarment HUD Housing Programs Reporting

Management agrees with the finding. Management has reviewed the situation with employees i.e. IT and Department Supervisors, who are responsible for contracts and other agreements that may include leases and subscriptions. The need for the accounting department to be provided with such agreements ha...

Management agrees with the finding. Management has reviewed the situation with employees i.e. IT and Department Supervisors, who are responsible for contracts and other agreements that may include leases and subscriptions. The need for the accounting department to be provided with such agreements has been emphasized to these employees. Management has also obtained the services of an outside contractor to provide the City with the calculations of assets and liabilities that may need to be recorded by the City under such contracts and agreements.

View Audit 403349

Finding 1217214 (2025-002)

Material Weakness 2025

City of McDonough

GA

Procurement, Suspension & Debarment Reporting

Management agrees with the finding. Management has implemented the necessary training and supervision for staff tasked with the accounts payable function. Staff will review the invoices paid after the fiscal year end and reflect them in the accounts payable balance and expenditures of the proper per...

Management agrees with the finding. Management has implemented the necessary training and supervision for staff tasked with the accounts payable function. Staff will review the invoices paid after the fiscal year end and reflect them in the accounts payable balance and expenditures of the proper period.

View Audit 403349

Corrective Action Plans

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