Corrective Action Plans

Finding 1168586 (2025-004)

Material Weakness 2025

MI

Internal Control / Segregation of Duties Eligibility Subrecipient Monitoring § 200.303

Finding Number 2025-004 Federal Program, Assistance Listing Number and Name: ALN 14.239, Department of Housing and Urban Development, Home Investment Partnerships Program Condition: Original Finding Description: The City lacked adequate controls to ensure annual reviews were conducted in accordance ...

Finding Number 2025-004 Federal Program, Assistance Listing Number and Name: ALN 14.239, Department of Housing and Urban Development, Home Investment Partnerships Program Condition: Original Finding Description: The City lacked adequate controls to ensure annual reviews were conducted in accordance with its policy, limiting its ability to exercise proper oversight of eligibility determinations performed by the program’s contractor. Contact Person Responsible for Corrective Action / Anticipated Completion Date: Julie Schneider Anticipated completion date: July 2025 Planned Corrective Action: This finding is timing related and was resolved by the City during fiscal year. The City reviewed and updated its policies and procedures to help ensure proper segregation of duties and proper oversight of eligibility determination. Additional processes now have independent review of inspections after the program’s contractor to further support program compliance. Review responsibilities were put in place to help ensure determinations receive an independent secondary review by City staff. These changes were in place by year-end. The City will continue to monitor the program and review procedures to ensure continued compliance and to prevent the recurrence of similar timing-related issues. The City will continue to monitor the program and review procedures to ensure continued compliance and to prevent the recurrence of similar timing-related issues.

View Audit 380442

Finding 1168582 (2025-003)

Material Weakness 2025

City of Detroit, Michigan

MI

Internal Control / Segregation of Duties Subrecipient Monitoring § 200.303

Finding Number: 2025-003 Federal Program, Assistance Listing Number and Name: ALN 14.239, Department of Housing and Urban Development (HUD), Home Investment Partnerships Program Condition: Original Finding Description: The requirements mandate that units be inspected, deficiencies communicated, and ...

Finding Number: 2025-003 Federal Program, Assistance Listing Number and Name: ALN 14.239, Department of Housing and Urban Development (HUD), Home Investment Partnerships Program Condition: Original Finding Description: The requirements mandate that units be inspected, deficiencies communicated, and corrective actions taken promptly. However, controls over housing quality standards are not effectively designed, reflecting a persistent lack of segregation of duties necessary to ensure compliance. Furthermore, existing controls were insufficient to guarantee that HQS inspection requirements were met and that identified deficiencies were addressed in a timely manner. Contact Person Responsible for Corrective Action / Anticipated Completion Date: Julie Schneider Anticipated completion date: July 2025 Planned Corrective Action: During the fiscal year, the City reviewed and enhanced its internal controls over HQS inspections to strengthen oversight and segregation of duties. Process changes were implemented to ensure that inspections, documentation of deficiencies, follow-up actions, and certifications of completion have independent review and approval. In addition, management implemented monitoring procedures to track inspection schedules to help ensure HQS requirements are met in a timely manner.While corrective actions were initiated during the fiscal year, they were not fully implemented throughout the entire period. By year-end, the controls were in place. The City will continue to monitor these controls to ensure ongoing compliance and to prevent similar issues from recurring.

View Audit 380442

Finding 1168578 (2025-003)

Material Weakness 2025

Lawrence Technological University

MI

Procurement, Suspension & Debarment Significant Deficiency § 200.319

Condition: The University supported full and open competition when testing Research and Development procurement contracts but did not support rationale for utilizing the selected contractor for 12 of the 23 samples tested. The University supported full and open competition when testing Coronavirus S...

Condition: The University supported full and open competition when testing Research and Development procurement contracts but did not support rationale for utilizing the selected contractor for 12 of the 23 samples tested. The University supported full and open competition when testing Coronavirus State and Local Fiscal Recovery Funds procurement contracts but did not support rationale for utilizing the selected contractor for 5 of the 5 samples tested. Planned Corrective Action: Management will reinforce its existing procurement procedures to ensure that competitive selections are not only conducted appropriately but also consistently documented. Management will implement a standardized documentation protocol that captures the rationale, evaluation criteria, and selection process for each procurement decision. The Procurement Policy will be revised, training will be provided to relevant staff, and periodic reviews will be conducted to ensure compliance. Contact person responsible for corrective action: Luba Kagan Anticipated Completion Date: June 30, 2026

View Audit 380438

Finding 1168572 (2025-002)

Material Weakness 2025

Lawrence Technological University

MI

Equipment & Real Property Management § 200.313

Condition: The University did not complete a physical inventory of the property within the last two years. Planned Corrective Action: Management will establish a formal inventory schedule that mandates physical inventory and reconciliation at least once every two years. Designated personnel will be ...

Condition: The University did not complete a physical inventory of the property within the last two years. Planned Corrective Action: Management will establish a formal inventory schedule that mandates physical inventory and reconciliation at least once every two years. Designated personnel will be assigned responsibility for executing and documenting the inventory process. Additionally, internal controls will be enhanced through periodic monitoring and reminders to ensure timely completion and proper recordkeeping. Contact person responsible for corrective action: David Dettloff, Staff Accountant Anticipated Completion Date: February 26, 2026

View Audit 380438

Finding 1168545 (2025-001)

Material Weakness 2025

Rockton School District No. 140

IL

Internal Control / Segregation of Duties

The District will continue procedures to provide oversight to the bookkeeper and treasurer positions, including oversight of bank reconciliations.

View Audit 380432

Finding 1168544 (2025-001)

Material Weakness 2025

Welsh Mountain Health Centers, INC

PA

We agree and plan to address this with improved processes, procedures, and training.

View Audit 380429

Finding 1168543 (2025-003)

Material Weakness 2025

Towner County Hospital Authority

ND

Special Tests & Provisions Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

Federal Agency Name: Department of Agriculture Assistance Listing Number: #10.766 Program Nome: Community Facilities Loans andGrants Finding Summary: There was no formal review separate from the preparer performed over reconciliations of the program reserve fund. Corrective Action Plan: Management w...

Federal Agency Name: Department of Agriculture Assistance Listing Number: #10.766 Program Nome: Community Facilities Loans andGrants Finding Summary: There was no formal review separate from the preparer performed over reconciliations of the program reserve fund. Corrective Action Plan: Management will ensure a review separate from the preparer of the reconciliationfor the program's reserve fund is completed with formal documentation notingthe review. The CFO will reconcile the bank statement and will sign off on the bank statement, alongwith the CEO for the reserve accounts. Responsible Individuals: Tammy Larson, CFO Anticipated Completion Date: January 1, 2026

View Audit 380424

Finding 1168542 (2025-001)

Material Weakness 2025

Santa Barbara County Education Office

CA

Subrecipient Monitoring Special Tests & Provisions Eligibility

For all future stipend payments, the Alternative Payment Program Supervisor will review and confirm that all appropriate documentation is submitted along with the request for payment. This documentation will be reviewed by the Early Care and Education Senior Accounting Technician for accuracy and co...

For all future stipend payments, the Alternative Payment Program Supervisor will review and confirm that all appropriate documentation is submitted along with the request for payment. This documentation will be reviewed by the Early Care and Education Senior Accounting Technician for accuracy and completeness before approving the stipend payment. Stipend payments will not be approved for payment until all appropriate documentation has been received and reviewed by the Early Care and Education Financial Services Manager.

View Audit 380403

Finding 1168534 (2025-003)

Material Weakness 2025

Isd #317 - Deer River

MN

Allowable Costs / Cost Principles

1. Explanation of Disagreement with Audit Finding There is no disagreement with the audit finding. 2. Actions Planned in Response to Finding The Elementary Principal will work to ensure that time and effort reports are completed. 3. Official Responsible for Ensuring CAP Jennifer Stefan, Elementary P...

1. Explanation of Disagreement with Audit Finding There is no disagreement with the audit finding. 2. Actions Planned in Response to Finding The Elementary Principal will work to ensure that time and effort reports are completed. 3. Official Responsible for Ensuring CAP Jennifer Stefan, Elementary Principal, is the official responsible for ensuring corrective action of the deficiency. 4. Planned Completion Date for CAP The planned completion date for the CAP is June 30, 2026. 5. Plan to Monitor Completion of CAP The School Board will be monitoring this CAP.

View Audit 380388

Finding 1168533 (2025-001)

Material Weakness 2025

Maple-Claremont, Inc.

NY

HUD Housing Programs

Finding 2025-001, The federal program 14.181 requires that all receipts of the project shall be deposited in the name of the project in a bank, and the funds must be used exclusively for the benefit of the project Condition and Context: Resident rents collected by the Sponsor were not transferred to...

Finding 2025-001, The federal program 14.181 requires that all receipts of the project shall be deposited in the name of the project in a bank, and the funds must be used exclusively for the benefit of the project Condition and Context: Resident rents collected by the Sponsor were not transferred to the Organization monthly. Persons Responsible: Irene Math, CFO and WJCS staff member (to be determined) Management acknowledges the finding and confirms that corrective measures are being implemented to ensure compliance. - A catch-up adjustment will be made to transfer previously unremitted resident rents to the Organization. - Monthly transfers of resident rent collections will be established. - The Financial Close and Compliance Checklist for Maple-Claremont has been updated to include this process, ensuring that transfers are reconciled and reviewed quarterly. - Staff training has been initiated to reinforce awareness of HUD compliance requirements and the importance of timely and accurate fund transfers. Management is committed to maintaining full compliance with HUD regulations under Program 14.181. The implemented procedures are designed to prevent recurrence and ensure that all project receipts are properly deposited and used exclusively for the benefit of the project. Management will continue to monitor this process and make adjustments as necessary, especially during annual contract renewals. Estimated completion date: February 2026

View Audit 380384

Finding 1168532 (2025-001)

Material Weakness 2025

Independent School District 695

MN

Internal Control / Segregation of Duties

Inadequate Segregation of Duties Actions Planned - The District has implemented a plan to mitigate this finding for federal programs by distiributing duties, and adding additional oversight. Program managers have been assigned to monitor and give oversight approval for federal fund expenses and budg...

Inadequate Segregation of Duties Actions Planned - The District has implemented a plan to mitigate this finding for federal programs by distiributing duties, and adding additional oversight. Program managers have been assigned to monitor and give oversight approval for federal fund expenses and budgets. Program managers sign off on all receipts and disbursements. A principal will act as a program manager for Title funds, and the Superintendent will act as program manager for all other federal funds. Request for reimbursement and receipting will be completed by the Business Manager with oversight by the Superintendent. The key action to eliminate inadequate segregation of duties is developing strong contols over the review and approval of adjusting journal entries. This will involve detailed review by the program manager and the Superintendent. Adjusting journal entries are discussed and signed off on each month to timely detect misstatements. Official Responsible - Business Manager and Superintendent of Schools. Planned Completion date - Discussed with School Board December 29, 2025. This is considered ongoing to to current staffing available. Disagreement with Finding - None. ISD #695 - Chisholm concurs with the finding. Plan to Monitor - The Distirct is aware of the situation and will monitor, as it deems appropriate. Monitoring will include educating program managers to provide additional oversight for the interim and year end reporting.

View Audit 380376

Finding 1168529 (2025-001)

Material Weakness 2025

Michigan School of Psychology

MI

Student Financial Aid Special Tests & Provisions

Finding 2025-001: Missing Proof of Loan Exit Counseling – the auditor tested thirty-seven files, of which all were Federal Direct Loan recipients, and proof of loan exit counseling was missing for one student. As the Institution has since provided the missing exit counseling to the student, it is re...

Finding 2025-001: Missing Proof of Loan Exit Counseling – the auditor tested thirty-seven files, of which all were Federal Direct Loan recipients, and proof of loan exit counseling was missing for one student. As the Institution has since provided the missing exit counseling to the student, it is recommended the Institution improve control over exit interviews. Comments on Finding and Recommendation(s): It is agreed that MSP originally missed providing Direct Loan exit counseling for the 1 student found in testing. The student did not graduate or withdraw, but simply did not return for a following semester. This was an oversight in existing procedures as we were not actively looking for this population of students previously. Actions Taken or Planned: MSP immediately revised the monthly enrollment reporting process such that the initial report for each semester now includes queries to look for students who were enrolled in the prior semester, but have not returned. They will be sent Direct Loan exit counseling requirement information and an email with a URL link to complete the process at StudentAid.gov. In addition, in cases that the registrar becomes aware that a student will not return, they will share that information with Financial Aid.

View Audit 380355

Finding 1168528 (2025-001)

Material Weakness 2025

Hope Community Academy

MN

1. Explanation of Disagreement with Audit Finding There is no disagreement with the audit finding. 2. Actions Planned in Response to Finding: The Charter School will review current procedures surrounding meal counts to ensure the numbers reported to MDE are supported. 3. Official Responsible for Ens...

1. Explanation of Disagreement with Audit Finding There is no disagreement with the audit finding. 2. Actions Planned in Response to Finding: The Charter School will review current procedures surrounding meal counts to ensure the numbers reported to MDE are supported. 3. Official Responsible for Ensuring CAP: Kevin Xiong, Executive Director, is the official responsible for ensuring corrective action. 4. Planned Completion Date for CAP: Fiscal year 2025-2026. 5. Plan to Monitor Completion of CAP: The Charter School will implement meal count procedures to be monitored by Kevin Xiong and completed by other staff members at the school.

View Audit 380354

Finding 1168526 (2025-002)

Material Weakness 2025

Meridian Community Unit School District #223

IL

The District will correct liability balances for the current year. Management has assigned specific responsibility for the monthly reconciliation of all payroll and benefit liability accounts. The Superintendent will review these reconciliations on a quarterly basis to ensure they are being complete...

The District will correct liability balances for the current year. Management has assigned specific responsibility for the monthly reconciliation of all payroll and benefit liability accounts. The Superintendent will review these reconciliations on a quarterly basis to ensure they are being completed timely and that any variances are investigated and resolved immediately.

View Audit 380351

Finding 1168525 (2025-001)

Material Weakness 2025

Meridian Community Unit School District #223

IL

Special Tests & Provisions

The District acknowledges the finding and has posted all recommended adjustments. To prevent recurrence, management will implement a more thorough year-end review process. We will consult with our auditors and the Illinois State Board of Education (ISBE) regarding unique reporting situtations as the...

The District acknowledges the finding and has posted all recommended adjustments. To prevent recurrence, management will implement a more thorough year-end review process. We will consult with our auditors and the Illinois State Board of Education (ISBE) regarding unique reporting situtations as they arise throughough the year. Additionally, staff will reference the Illinois Program Accounting Manual (IPAM) more frequently to ensure transactions are recorded in the proper accounts prior to the audit.

View Audit 380351

Finding 1168502 (2025-001)

Material Weakness 2025

Sma Healthcare, Inc.

FL

Allowable Costs / Cost Principles Eligibility

For ALN 93.958, the discount fee was not properly calculated and/or documented on the Financial Assessment Form for 3 of the 60 clients tested. Additionally, 4 of the 60 clients tested on the Block Grant for Mental Health had dates that did not fall within one year after the FAF completion. For ALN ...

For ALN 93.958, the discount fee was not properly calculated and/or documented on the Financial Assessment Form for 3 of the 60 clients tested. Additionally, 4 of the 60 clients tested on the Block Grant for Mental Health had dates that did not fall within one year after the FAF completion. For ALN 93.959, 1 of the 60 clients tested on the Block Grant for Prevention and Treatment of Substance Abuse did not have a completed FAF and 1 of the 60 tested had a missing client signature. For ALN 93.788, 1 of the 40 clients tested on Opioid STR Program did not have a completed FA. Our internal tracking of completion of the Financial Assessment Form at admission indicates that compliance with this requirement occurs about 90% of the time. We have identified that some of the missing FAs are a result of Telehealth appointments and clients not coming into the office. As a corrective action, the Client Service Specialist will be trained by their managers to ensure data is entered accurately and how to properly apply the FAs. SMA will also include the completion of the Financial Assessment Form both at admission and annually with data to be reviewed monthly by the managers. In addition, we will be working with IT to identify a way to collect the FAs from clients that utilize Telehealth services. Reporting will be sent out monthly and if out of compliance the managers will be required to be present at the quarterly Quality Assurance Committee meeting if not at 100%.

View Audit 380315

Finding 1168479 (2025-001)

Material Weakness 2025

Maple River Schools Isd #2135

MN

School Nutrition Programs Subrecipient Monitoring Eligibility

Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Actions Planned in Response to Finding: Staff have been retrained, and additional monitoring procedures have been implemented. The Food Service Director will oversee ongoing compliance. Official Responsi...

Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Actions Planned in Response to Finding: Staff have been retrained, and additional monitoring procedures have been implemented. The Food Service Director will oversee ongoing compliance. Official Responsible for Ensuring CAP: Dan Anderson, Superintendent, is the official responsible for ensuring corrective action. Planned Completion Date for CAP: June 30, 2026. Plan to Monitor Completion of CAP: The Board of Education will be monitoring this corrective action plan. Dan Anderson Superintendent

View Audit 380305

Finding 1168470 (2025-003)

Material Weakness 2025

Town of Amite City

LA

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Eligibility § 200.214 § 200.318

The Town recognized its lack of understanding of Uniform Guidance as it relates to federal grant programs and hired an outside consultant on August 16, 2022, to administer the federal grants to ensure that the Town would comply with allfederalprogram requirements. The Town was led to believe that th...

The Town recognized its lack of understanding of Uniform Guidance as it relates to federal grant programs and hired an outside consultant on August 16, 2022, to administer the federal grants to ensure that the Town would comply with allfederalprogram requirements. The Town was led to believe that they were in compliance with all federal program requirements. This is the second year of both federal grant programs, and the Town is just being made aware of the suspension and debarment requirement. It should be noted that all contractors and the consultant are not on the suspension and debarment lists.

View Audit 380288

Finding 1168469 (2025-002)

Material Weakness 2025

Town of Amite City

LA

Procurement, Suspension & Debarment Allowable Costs / Cost Principles § 200.318

All payments to contractors and vendors for the Water Sector Program are reviewed and approved by the outside consulting firm prior to payment. The outside consultant directs the Clerk as to the amount to pay and who to pay. The outside consultant acknowledged that they made the error in instructing...

All payments to contractors and vendors for the Water Sector Program are reviewed and approved by the outside consulting firm prior to payment. The outside consultant directs the Clerk as to the amount to pay and who to pay. The outside consultant acknowledged that they made the error in instructing the Town to make the payment. The State of Louisiana was contacted by the outside consultant to discuss the corrective action plan. The State advised the consultant to not make any corrections to the pay request that they would “bagout” the overpayment. Before the next pay request, the contractor returned the overpayment which was deposited into the Town’s Water Sector grant bank account.

View Audit 380288

Finding 1168468 (2025-001)

Material Weakness 2025

Town of Amite City

LA

Allowable Costs / Cost Principles Procurement, Suspension & Debarment § 200.302 § 200.303 § 200.305 § 200.318 § 200.326

The Town recognized its lack of understanding of Uniform Guidance as it relates to federal grant programs and hired an outside consultant on August 1 6, 2022, to administer the federal grants to ensure that the Town would comply with all federal program requirements. The Town was led to believe that...

The Town recognized its lack of understanding of Uniform Guidance as it relates to federal grant programs and hired an outside consultant on August 1 6, 2022, to administer the federal grants to ensure that the Town would comply with all federal program requirements. The Town was led to believe that they were in compliance with all federal program requirements. The Town will develop, formally adopt, and implement written policies and procedures to comply with Uniform Guidance (2 CFR 200).

View Audit 380288

Finding 1168464 (2025-003)

Material Weakness 2025

Hickman Mills C-1 School District

MO

Subrecipient Monitoring Allowable Costs / Cost Principles Special Tests & Provisions § 200.444 § 200.475

The District has revised and resubmitted the Final Expenditure Report for the Title I School Improvement (a) grant and will repay the unallowable costs to DESE. In addition the District will ensure that its procedures and the Uniform Guidance requirements are being followed regarding allowable trave...

The District has revised and resubmitted the Final Expenditure Report for the Title I School Improvement (a) grant and will repay the unallowable costs to DESE. In addition the District will ensure that its procedures and the Uniform Guidance requirements are being followed regarding allowable travel expenses.

View Audit 380251

Finding 1168463 (2025-004)

Material Weakness 2025

Belleville Public Schools District 118

IL

The District will review the general ledger and compare to expenditure reports to ensure agreement before the reports are submitted.

View Audit 380246

Finding 1168462 (2025-003)

Material Weakness 2025

McCook Public School District No 17

NE

The business manager will be the second person to review the application information and verify accuracy.

View Audit 380238

Finding 1168458 (2025-002)

Material Weakness 2025

McCook Public School District No 17

NE

The entity's finance department will work to ensure that the Board packets include a list of disbursements from each fund.

View Audit 380238

Finding 1168454 (2025-001)

Material Weakness 2025

McCook Public School District No 17

NE

Internal Control / Segregation of Duties

The entity's Board continually evaluates the distribution of duties to employees and closely monitors all accounting functions. The School District has implemented controls within its accounting functions to mitigate the lack of segregation of duties but recognizes that this should still be a concer...

The entity's Board continually evaluates the distribution of duties to employees and closely monitors all accounting functions. The School District has implemented controls within its accounting functions to mitigate the lack of segregation of duties but recognizes that this should still be a concern for the School District and the Board.

View Audit 380238

Corrective Action Plans

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