Corrective Action Plans

Finding 1174275 (2025-001)

Material Weakness 2025

OR

Student Financial Aid

Finding: 2025-001 Federal Agency Name: U.S. Department of Education Assistance Listing Number(s): 84.007, 84.033, 84.038, 84.063, and 84.268. Program Name: Student Financial Assistance Cluster Finding Summary: Under 34 CFR 690.63 and 685.200, institutions must calculate Pell grant and federal direct...

Finding: 2025-001 Federal Agency Name: U.S. Department of Education Assistance Listing Number(s): 84.007, 84.033, 84.038, 84.063, and 84.268. Program Name: Student Financial Assistance Cluster Finding Summary: Under 34 CFR 690.63 and 685.200, institutions must calculate Pell grant and federal direct loan awards based on the student’s eligible enrollment status, cost of attendance, expected family contribution (EFC) or student aid index (SAI), satisfactory academic progress, and other Title IV eligibility requirements. Institutions are required to ensure award amounts are accurate and supported by the documentation in the students’ file. During testing of 60 students, it was found that two students who were not awarded the correct amount of Pell, one student who was not awarded the correct amount of federal direct loans, and two students who received subsidized direct loans however did not meet the requirements to receive the need-based aid. Responsible Individuals: Kella Helyer, Director of Financial Aid Corrective Action Plan: Management agrees with this finding. Banner reports have been modified to ensure that all students who are over gross need and over unmet need are captured in the report for the counseling team to review and update as needed. Anticipated Completion Date: February 16, 2026

View Audit 388016

Finding 1174269 (2025-002)

Material Weakness 2025

Nevada Housing Authority

MO

Internal Control / Segregation of Duties

Corrective action planned: During the audit review, questions were raised regarding compensatory and personal leave balances. Management notes that the amounts identified were processed through the Authority’s payroll system (ADP) and supported by existing leave balances, board-approval policy chang...

Corrective action planned: During the audit review, questions were raised regarding compensatory and personal leave balances. Management notes that the amounts identified were processed through the Authority’s payroll system (ADP) and supported by existing leave balances, board-approval policy changes, and documented role assignments. The Executive Director held acting, assistant, deputy, and executive leadership roles during the periods referenced, as documented by personnel status forms and Board actions. These roles include on-call and after-hours responsibilities impacting availability and leave usage. Management’s review identified that leave balances were influenced by payroll system configuration, transitions to PTO approved by the Board, and subsequent board-approved leave adjustments. Upon identification of discrepancies, records were corrected where appropriate. Management will coordinate with the Authority’s payroll provider (ADP) to review system configuration and ensure leave balances carry forward accurately in accordance with approved policy, further strengthening internal controls and documentation consistency. In addition, management is undertaking a broader review of personnel policies and procedures. Management anticipates presenting proposed updates to the Board of Commissioners, including elimination of compensatory time for executive-level staff and clarification of compensation and availability expectations to improve administrative clarity going forward. Management believes these actions will strengthen internal controls, enhance transparency, and reduce the risk of future misinterpretation of leave and compensation practices. Contact person: Amanda Koehn, Executive Director. Anticipated completion date: Management anticipates completion of corrective actions by February 18, 2026, including implementation of payroll system review with ADP and Board approval of policy revisions eliminating comp time. Final written policy updates through Nelrod are anticipated to be completed no later than March 31, 2026, subject to vendor processing timelines.

View Audit 388015

Finding 1174268 (2025-001)

Material Weakness 2025

Western Wayne School Corporation

IN

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

FINDING 2025-001 Subject: Child Nutrition Cluster (CNC) - Internal Controls Federal Agency: Department of Education Federal Program: School Breakfast Program, National School Lunch Program, Summer Food Service Program for Children Assistance Listing Number: 10.553, 10.555, 10.559 Pass-Through Entity...

FINDING 2025-001 Subject: Child Nutrition Cluster (CNC) - Internal Controls Federal Agency: Department of Education Federal Program: School Breakfast Program, National School Lunch Program, Summer Food Service Program for Children Assistance Listing Number: 10.553, 10.555, 10.559 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs - Cost Principles Audit Finding: Significant Deficiency Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Activities Allowed or Unallowed, Allowable Costs - Cost Principles compliance requirements. Context: During testing payroll disbursements charged to CNC grants, we noted: One selection in a sample of 40 for which the employee was paid above their contracted hourly rate. One selection in a sample of 40 for which the contract sheet for fiscal year 2025 did not include an accurate breakdown for cafeteria employees employed for less than one year and employees employed more than one year. Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: Management will ensure controls surrounding salary/hour rate schedules are implemented/enhanced and that rate changes are properly reviewed when instituted. Responsible Party and Timeline for Completion: Betty Huddleston, July 1, 2026

View Audit 387991

Finding 1174260 (2025-003)

Material Weakness 2025

Alameda Health System, A Public Hospital Authority

CA

Matching / Level of Effort / Earmarking § 200.303

Management agrees with the finding. The Health System has implemented the policy titled, Alameda Health System Reports Policies – SUD Program, to ensure program earmarking requirements and proper documentation is retained to evidence fulfilled requirements. Management will continue to refine interna...

Management agrees with the finding. The Health System has implemented the policy titled, Alameda Health System Reports Policies – SUD Program, to ensure program earmarking requirements and proper documentation is retained to evidence fulfilled requirements. Management will continue to refine internal data collection processes to sufficiently monitor earmarking requirements.

View Audit 387960

Finding 1174259 (2025-004)

Material Weakness 2025

Alameda Health System, A Public Hospital Authority

CA

Matching / Level of Effort / Earmarking Reporting § 200.303

Management agrees with the finding. The Health System has implemented the policy and procedures over the program to ensure that required reports are prepared and reviewed by separate individuals. Documentation is maintained by the program to evidence preparation and review processes and timely filin...

Management agrees with the finding. The Health System has implemented the policy and procedures over the program to ensure that required reports are prepared and reviewed by separate individuals. Documentation is maintained by the program to evidence preparation and review processes and timely filing of the annual report. Management will continue to refine internal processes to ensure quarterly and annual reports are filed timely.

View Audit 387960

Finding 1174254 (2025-002)

Material Weakness 2025

Southern California Regional Rail Authority/metrolink

CA

Procurement, Suspension & Debarment

FINDING 2025-002 Procurement and Suspension and Debarment Management’s or Department’s Response: Management agrees. Views of Responsible Officials and Corrective Action: SCRRA has implemented the use of the checklist for all the required documents associated with a procurement. The checklist include...

FINDING 2025-002 Procurement and Suspension and Debarment Management’s or Department’s Response: Management agrees. Views of Responsible Officials and Corrective Action: SCRRA has implemented the use of the checklist for all the required documents associated with a procurement. The checklist includes all applicable documents required to complete a procurement and communicated to the contractors. Name of Responsible Person: Cynthia Minix Implementation Date: June 30, 2026

View Audit 387959

Finding 1174221 (2025-004)

Material Weakness 2025

Denise Hook

IA

Procurement, Suspension & Debarment § 200.318 § 200.326

Finding 2025-004 U.S. Department of Agriculture Federal Financial Assistance Listing/ALN #10.855 Distance Learning and Telemedicine Grants Federal Award #IA0714-BI17 2025 Procurement, Suspension and Debarment Material Noncompliance and Material Weakness in Internal Controlover Compliance Criteria: U...

Finding 2025-004 U.S. Department of Agriculture Federal Financial Assistance Listing/ALN #10.855 Distance Learning and Telemedicine Grants Federal Award #IA0714-BI17 2025 Procurement, Suspension and Debarment Material Noncompliance and Material Weakness in Internal Controlover Compliance Criteria: Uniform Guidance and 2 CFR §§ 200.318 through 200.326 establish the procurement standards that non-federal entities (other than states) must follow when expending federal awards. These standards require non-federal entities to maintain written procurement policies and procedures that ensure full and open competition, use of appropriate procurement methods based on dollar thresholds, and inclusion of required contract provisions as outlined in Appendix II to Part 200. Condition: The Hospital does not have a written procurement policy that conforms to the procurement standards under Uniform Guidance and 2 CFR §§ 200.318 through 200.326. In addition, testing of the Hospital’s only procurement transaction during the audit period disclosed the following instances of noncompliance: The procurement method used was not in accordance with Uniform Guidance requirements, as the contract amount exceeded the simplified acquisition threshold and a sealed bid or other allowable competitive procurement method was not obtained. The executed contract did not include all required contract provisions as prescribed by Appendix II to 2 CFR Part 200. Planned Corrective Action: Management is aware of the deficiency of internal control over the procurement, suspension and debarment direct and material requirement and subsequent to fiscal year end has implemented a formal procurement policy. Planned Completion Date: June 30, 2026 Person Responsible: Denise Hook, Chief Financial Officer

View Audit 387942

Finding 1174198 (2025-001)

Material Weakness 2025

Via Care Community Health Center, Inc.

CA

The Sliding fee determination will be reviewed by the front desk staff thoughtfully daily to ensure the proper charge to the patient. We have redeveloped our front office patient registration flow. Once the patient is screened and determined to be eligible for the Sliding Fee program by the front of...

The Sliding fee determination will be reviewed by the front desk staff thoughtfully daily to ensure the proper charge to the patient. We have redeveloped our front office patient registration flow. Once the patient is screened and determined to be eligible for the Sliding Fee program by the front office/enrollment department, the patient will complete the Sliding Fee application and Self‑Declaration of Income and Family Size. The front office/enrollment department verifies/signs the application, determines what scale the patient qualifies for, and verifies with our practice management system. The Front Office/enrollment department will upload documents into the patient's chart in eCW and contact the billing department at extension 1907. The Lead Biller will review all uploaded documents and approve the Sliding Fee in real time. All Sliding Fee applications must be reviewed by billing before the patient leaves the clinic.

View Audit 387919

Finding 1174195 (2025-001)

Material Weakness 2025

The Housing Authority of the City of Prichard, Alabama

AL

HUD Housing Programs Cash Management Material Weakness

Corrective Action Plan FYE 6/30/2025 Audit Finding # 2025-0001 – Cash Management The Housing Authority of the City of Prichard acknowledges the audit finding regarding interfund balances and accepts responsibility for implementing corrective actions to strengthen internal controls and ensure long-te...

Corrective Action Plan FYE 6/30/2025 Audit Finding # 2025-0001 – Cash Management The Housing Authority of the City of Prichard acknowledges the audit finding regarding interfund balances and accepts responsibility for implementing corrective actions to strengthen internal controls and ensure long-term financial sustainability. At the onset of the fiscal year, management recognized the need to reduce expenses and thus implemented an expense reduction strategy. In reviewing the overall operating expenses for the agency, comparing FYE 2025 to FYE 2024, overall operating expenses declined by approximately $1M, supporting management's goal to reaching a more sustainable long term financial strategy. To further this initiative and continue improving the cash flow position, management will pursue ongoing expense reductions and financial planning strategies to ensure long-term financial sustainability for the agency. This will be accomplished by implementing the following strategies: 1. Engage site management, maintenance, finance, and executive leadership in comprehensive reviews of approved budgets and financial statements to strengthen fiscal oversight and identify additional cost-reduction opportunities. 2. Executive management will review and approve specific categories of expenses to promote accountability, fiscal responsibility, and effective cost control. 3. Continue with enhancement of the agency's home ownership program, providing increased cash flows for operations and improved financial sustainability. 4. Evaluation measures will continue in which intercompany account balances will be reviewed on a monthly basis, determining which entities can support an intercompany reimbursement to the lending property. Upon determining entities with available cash flows, reimbursements will be processed. 5. Continue the agency's initiatives to increase revenues through transition of properties to other revenue streams that would provide more flexibility in establishing an increased rent structure (i.e. PBVs, market rate rents, etc.) As cash flow conditions improve, management will develop and implement a repayment plan to address intercompany balances, recognizing this as a long-term initiative critical to the Agency’s financial sustainability.

View Audit 387909

Finding 1174192 (2025-001)

Material Weakness 2025

Compass Rose Education

TX

Allowable Costs / Cost Principles Material Weakness Internal Control / Segregation of Duties

Because of turnover, the School lacked sufficient oversight to ensure that allocations of Title I Part A funding by campus was in compliance with rank-and-serve methodologies. The Director of Special Revenue will work with the finance team to ensure that allocations by campus as in compliance and re...

Because of turnover, the School lacked sufficient oversight to ensure that allocations of Title I Part A funding by campus was in compliance with rank-and-serve methodologies. The Director of Special Revenue will work with the finance team to ensure that allocations by campus as in compliance and review those regularly. Responsible Official: Director of Special Revenue Anticipated Completion Date: February 27, 2026

View Audit 387895

Finding 1174189 (2025-004)

Material Weakness 2025

City of Albemarle

NC

HUD Housing Programs Special Tests & Provisions

Finding: 2025-004 Name of Contact Person: Renae Miller, Public Housing Director Corrective Action/Management’s Response: The Housing Choice Voucher (HCV) Program repeat findings identified in the audit are acknowledged. As part of the corrective action to address these findings and to strengthen pro...

Finding: 2025-004 Name of Contact Person: Renae Miller, Public Housing Director Corrective Action/Management’s Response: The Housing Choice Voucher (HCV) Program repeat findings identified in the audit are acknowledged. As part of the corrective action to address these findings and to strengthen program compliance and oversight, the City of Albemarle entered into a Memorandum of Agreement (MOA) with the Lexington Housing Authority (LHA) to administer the HCV Program on the City’s behalf. As part of this transition and corrective process, LHA conducted a comprehensive review and audit of the HCV Program covering the previous five (5) years, allowing for the identification of compliance gaps, operational deficiencies, and areas requiring corrective action. This review has informed the implementation of improved controls, processes, and reporting mechanisms. Moving forward, I, as the Director of Housing, will maintain direct and ongoing oversight of the HCV Program by working closely with LHA leadership to ensure the program is administered in full compliance with HUD regulations and applicable requirements. This oversight will include: • Receipt and review of monthly HCV performance and compliance reports • Regular briefings and status meetings with the Executive Director of the Lexington Housing Authority • Ongoing monitoring of corrective actions and compliance benchmarks • Prompt resolution of identified issues to prevent recurrence of findings These measures have been implemented to strengthen accountability, improve internal controls, and ensure sustained compliance of the HCV Program moving forward. Proposed Completion Date: Immediately and Ongoing

View Audit 387888

Finding 1174188 (2025-003)

Material Weakness 2025

City of Albemarle

NC

HUD Housing Programs Special Tests & Provisions

Finding: 2025-003 Name of Contact Person: Renae Miller, Public Housing Director Corrective Action/Management’s Response: The Housing Choice Voucher (HCV) Program repeat findings identified in the audit are acknowledged. As part of the corrective action to address these findings and to strengthen pro...

Finding: 2025-003 Name of Contact Person: Renae Miller, Public Housing Director Corrective Action/Management’s Response: The Housing Choice Voucher (HCV) Program repeat findings identified in the audit are acknowledged. As part of the corrective action to address these findings and to strengthen program compliance and oversight, the City of Albemarle entered into a Memorandum of Agreement (MOA) with the Lexington Housing Authority (LHA) to administer the HCV Program on the City’s behalf. As part of this transition and corrective process, LHA conducted a comprehensive review and audit of the HCV Program covering the previous five (5) years, allowing for the identification of compliance gaps, operational deficiencies, and areas requiring corrective action. This review has informed the implementation of improved controls, processes, and reporting mechanisms. Moving forward, I, as the Director of Housing, will maintain direct and ongoing oversight of the HCV Program by working closely with LHA leadership to ensure the program is administered in full compliance with HUD regulations and applicable requirements. This oversight will include: • Receipt and review of monthly HCV performance and compliance reports • Regular briefings and status meetings with the Executive Director of the Lexington Housing Authority • Ongoing monitoring of corrective actions and compliance benchmarks • Prompt resolution of identified issues to prevent recurrence of findings These measures have been implemented to strengthen accountability, improve internal controls, and ensure sustained compliance of the HCV Program moving forward. Proposed Completion Date: Immediately and Ongoing

View Audit 387888

Finding 1174187 (2025-002)

Material Weakness 2025

City of Albemarle

NC

HUD Housing Programs

Finding: 2025-002 Name of Contact Person: Renae Miller, Public Housing Director Corrective Action/Management’s Response: The Housing Choice Voucher (HCV) Program repeat findings identified in the audit are acknowledged. As part of the corrective action to address these findings and to strengthen pro...

Finding: 2025-002 Name of Contact Person: Renae Miller, Public Housing Director Corrective Action/Management’s Response: The Housing Choice Voucher (HCV) Program repeat findings identified in the audit are acknowledged. As part of the corrective action to address these findings and to strengthen program compliance and oversight, the City of Albemarle entered into a Memorandum of Agreement (MOA) with the Lexington Housing Authority (LHA) to administer the HCV Program on the City’s behalf. As part of this transition and corrective process, LHA conducted a comprehensive review and audit of the HCV Program covering the previous five (5) years, allowing for the identification of compliance gaps, operational deficiencies, and areas requiring corrective action. This review has informed the implementation of improved controls, processes, and reporting mechanisms. Moving forward, I, as the Director of Housing, will maintain direct and ongoing oversight of the HCV Program by working closely with LHA leadership to ensure the program is administered in full compliance with HUD regulations and applicable requirements. This oversight will include: • Receipt and review of monthly HCV performance and compliance reports • Regular briefings and status meetings with the Executive Director of the Lexington Housing Authority • Ongoing monitoring of corrective actions and compliance benchmarks • Prompt resolution of identified issues to prevent recurrence of findings These measures have been implemented to strengthen accountability, improve internal controls, and ensure sustained compliance of the HCV Program moving forward. Proposed Completion Date: Immediately and ongoing

View Audit 387888

Finding 1174186 (2025-001)

Material Weakness 2025

Greensboro College, Inc. and Affiliates

NC

Student Financial Aid Reporting Matching / Level of Effort / Earmarking

Contact Person: Travis Mickey, Registrar Views of Responsible Officials and Planned Corrective Action: There is no disagreement with the audit finding. The College will collaborate with NSC to evaluate the errors in the file transmissions and to develop procedures to minimize further errors in the f...

Contact Person: Travis Mickey, Registrar Views of Responsible Officials and Planned Corrective Action: There is no disagreement with the audit finding. The College will collaborate with NSC to evaluate the errors in the file transmissions and to develop procedures to minimize further errors in the future. More specifically, the College will review the reporting procedures for withdrawn and graduating students to ensure the correct information is transmitted to NSLDS. Anticipated Completion Date: 6/30/2026

View Audit 387881

Finding 1174181 (2025-007)

Material Weakness 2025

City of Wolf Point

MT

Procurement, Suspension & Debarment Subrecipient Monitoring

NONCOMPLIANCE WITH GRANT TERMS AND CONDITIONS; COMMUNITY DEVELOPMENT BLOCK GRANTS/STATES PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII, AL No. 14.228, GRANT No. MT-CDBG-CV-22-13, YEAR ENDED JUNE 30, 2025 Name of contact person: Jhona Peterson, City Clerk/Treasurer Corrective Action: As a general prac...

NONCOMPLIANCE WITH GRANT TERMS AND CONDITIONS; COMMUNITY DEVELOPMENT BLOCK GRANTS/STATES PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII, AL No. 14.228, GRANT No. MT-CDBG-CV-22-13, YEAR ENDED JUNE 30, 2025 Name of contact person: Jhona Peterson, City Clerk/Treasurer Corrective Action: As a general practice, the Mayor and City Council will work with the engineers and require all contractors and vendors to supply proof of suspension and debarment review prior to work contracts being finalized for all projects. Proposed Completion Date: Fiscal year 2026

View Audit 387880

Finding 1174180 (2025-003)

Material Weakness 2025

Kentucky Wesleyan College

KY

Student Financial Aid

Federal Program: U.S. Department of Education: Student Financial Aid Cluster: Federal Pell Grant Program, Assistance Listing 84.063 Federal Supplemental Educational Opportunity Grants, Assistance Listing 84.007 Direct Loan Student Loans, Assistance Listing 84.268 Criteria: The College must comply wi...

Federal Program: U.S. Department of Education: Student Financial Aid Cluster: Federal Pell Grant Program, Assistance Listing 84.063 Federal Supplemental Educational Opportunity Grants, Assistance Listing 84.007 Direct Loan Student Loans, Assistance Listing 84.268 Criteria: The College must comply with 34 CFR Section 668.22(a). Condition: We tested nine unofficial withdrawals, which included eight students enrolled in modules. For four of these students, the College used the number of days in the module the student withdrew from, instead of using the total amount days the student was enrolled in on the first day of the period or at any time during the period, based on the Title IV rules for modular enrollment. This resulted in the incorrect denominator and inaccurate calculations of earned and unearned aid. For one sample, the student earned sufficient credit hours in the first Fall module to be considered half-time. However the College still performed a return of funds calculation when the student withdrew from the second module even though no return of funds was required based on the Title IV rules for modular enrollment. Upon further analysis, there were 34 student that withdrew from the College during the year that were enrolled in modular programs and 12 of those students had an incorrect return of funds calculation. Cause: The College did not have adequate procedures to ensure that the return of funds calculations for modular students were performed in accordance with federal regulations. In addition, the College’s procedures did not include controls to identify circumstances in which return of funds were not required for modular students, such as when a student has already earned sufficient credit hours before withdrawal. Effect: Incorrect return of funds calculations for modular students led to inaccurate determinations of earned and unearned Title IV aid. Recommendation: We recommend the College implement controls to ensure the number of days used in the return of funds calculation is accurate based on the module-specific rules. We also recommend the College implement a review process to confirm whether a student has completed sufficient coursework to be considered half-time, thereby exempting them from the return of funds requirements, and to provide training to financial aid staff on the return of funds requirements from student enrolled in module programs. Views of responsible officials and planned corrective actions: The Director of Financial Aid will review the student’s enrollment on a module-by module basis at the time of withdrawal to determine the applicable payment period and correct number of days in the period. The Director of Financial Aid will develop a standardized R2T4 checklist for module programs that include identification of all modules within the payment period, confirmation of the student’s start and end dates for each module, and documentation of the total days in the payment period and days completed a the time of withdrawal. To ensure appropriate identification of students who may be exempt from R2T4 requirements due to completion of sufficient coursework, the Director of Financial Aid will establish a formal review process to include the following: 1) Prior to completing an R2T4 calculation, Director of Financial Aid will verify whether the student successfully completed coursework equal to or greater than half-time enrollment, in accordance with federal regulations. 2) This review will include confirmation of: a. Completed credit hours b. Applicable academic records or grades 3) Documentation of the half-time determination will be maintained in the student’s financial aid file to support exemption decisions when applicable The College will enhance training efforts to ensure staff are fully informed of R2T4 requirements specific to module-based enrollment. Training will be conducted annually and incorporated into onboarding for new staff. Completion date: 2/10/2026. Responsible staff: Crystal Benton, Director of Financial Aid.

View Audit 387869

Finding 1174177 (2025-002)

Material Weakness 2025

Kentucky Wesleyan College

KY

Student Financial Aid

Federal Program: U.S. Department of Education: Student Financial Aid Cluster: Federal Pell Grant Program, Assistance Listing 84.063 Federal Supplemental Educational Opportunity Grants, Assistance Listing 84.007 Direct Loan Student Loans, Assistance Listing 84.268 Criteria: The College must comply wi...

Federal Program: U.S. Department of Education: Student Financial Aid Cluster: Federal Pell Grant Program, Assistance Listing 84.063 Federal Supplemental Educational Opportunity Grants, Assistance Listing 84.007 Direct Loan Student Loans, Assistance Listing 84.268 Criteria: The College must comply with 34 CFR 668.22(f). Condition: We tested nine official withdrawals, which included four students that officially withdrew in the Spring semester, with two of those who withdrew subsequent to spring break. We noted the incorrect amount of total days in the Spring semester was used in the return of funds calculation for all students who withdrew in the Spring semester. Additionally, the two of the students that official withdrew subsequent to spring break incorrectly had included in the total number of days attended in the semester in their return of funds calculation. Cause: The College does not have procedures in place to properly review days used and attended within the return of funds calculation. Effect: The provisions of 34 CFR Section 668.22 were not followed, thus a total of four students had incorrect return of funds calculations. Recommendation: The College does not have procedures in place to properly review days used and attended within the return of funds calculation. Views of responsible officials and planned corrective actions: The Director of Financial Aid has verified in the Student Aid Handbook to include the weekend after the last day of class to the next full day of instruction (includes Saturday and Sunday). Powerfaids has been updated to include these other days. Before finalizing any returns, the Assistant Director of Financial Aid will review the R2T4. Completion date 2/10/2026. Responsible staff: Crystal Benton, Director of Financial Aid

View Audit 387869

Finding 1174174 (2025-001)

Material Weakness 2025

Kentucky Wesleyan College

KY

Student Financial Aid Eligibility Reporting

Finding 2025-001 Federal Program: U.S. Department of Education: Student Financial Aid Cluster: Federal Pell Grant Program, Assistance Listing 84.063 Criteria: The College must comply with 34 CFR 690.83 and 34 Section 685.301(a)(2). Condition: We tested 40 samples for eligibility, and noted that 12 o...

Finding 2025-001 Federal Program: U.S. Department of Education: Student Financial Aid Cluster: Federal Pell Grant Program, Assistance Listing 84.063 Criteria: The College must comply with 34 CFR 690.83 and 34 Section 685.301(a)(2). Condition: We tested 40 samples for eligibility, and noted that 12 of the samples had reporting errors related to the disbursement dates to Common Origination and Disbursement (COD). 11 of the errors related to Pell disbursements and one related to a disbursement of a direct loan. Cause: The College did not have a procedure in place to properly review COD disbursement amounts and dates to verify all students had the proper reporting in COD. Effect: The provisions of 34 CFR Section 690.83 and 34 Section 685.301(a)(2), were not followed and thus 11 students had incorrect reporting of one day in COD related to Pell disbursements and one student had incorrect reporting of 8 days related to a Direct Loan disbursement. Recommendation: We recommend that the College review all COD disbursements and perform monthly COD reconciliations by student to verify the disbursement date matches the student account. Views of responsible officials and planned corrective actions: The Director of Financial Aid will review and verify the funds that were disbursed to the students’ account match the disbursement dates in COD on the date the transfer batch report is sent to the College’s Business Office by pulling a reconciliation file from COD. The Director of Financial Aid also has in place to pull students who need Pell or Direct Loans to be disbursed by running a report out of CAMS instead of running a selection set in Powerfaids. Monthly reconciliations for both fund types will be completed every 30 days. Completion date: 2/10/2026. Responsible staff: Crystal Benton, Director of Financial Aid

View Audit 387869

Finding 1174173 (2025-001)

Material Weakness 2025

Appalcart

NC

Reporting Subrecipient Monitoring § 200.512

Name of contact person: Craig Hughes, Executive Director Corrective Action: Finance procedures will be updated to include submission confirmation of the reporting package to the Federal Audit Clearinghouse. Proposed Completion Date: January 31, 2026.

View Audit 387867

Finding 1174172 (2025-001)

Material Weakness 2025

Child Care Links Association

KS

Internal Control / Segregation of Duties

Procedures should be established and implemented where the Organization segregates duties in the receipts and expenditures cycles and implements additional controls over the accounting and recording functions. Involvement by the Board of Directors can help mitigate the risk of error or fraud. The Bo...

Procedures should be established and implemented where the Organization segregates duties in the receipts and expenditures cycles and implements additional controls over the accounting and recording functions. Involvement by the Board of Directors can help mitigate the risk of error or fraud. The Board of Directors should remain involved in the financial affairs of the Organization with oversight and independent review of internal control functions.

View Audit 387863

Finding 1174171 (2025-004)

Material Weakness 2025

Mississinewa Community School Corporation

IN

School Nutrition Programs § 200.303

FINDING 2025-004 Finding Subject: Child Nutrition Cluster-Reporting Contact Person Responsible for Corrective Action: Greg Miller, Food Service Director Contact Phone Number and Email Address: 424 East South A Street, Gas City, IN 46933 (765)-677- 4423 Views of Responsible Officials: Mississinewa Co...

FINDING 2025-004 Finding Subject: Child Nutrition Cluster-Reporting Contact Person Responsible for Corrective Action: Greg Miller, Food Service Director Contact Phone Number and Email Address: 424 East South A Street, Gas City, IN 46933 (765)-677- 4423 Views of Responsible Officials: Mississinewa Community School Corporation concurs with the finding 2025-004. Description of Corrective Action Plan: An effective internal control system, which would include segregation of duties, was not in place at the School Corporation to ensure compliance with requirements related to the monthly reimbursement claim process for the audit period. Corrective Action: Internal Controls regarding the monthly reimbursement claim process will be implemented to be completed each month. The High School Kitchen Manager, along with the Food Service Director, will review the sale reports, attendance factor, and edit checks to calculate the total claim count for each federal program. The Manager and Food Service Director will approve and sign the total meal counts to claim prior to entering data into the CNP website. Anticipated Completion Date: January 31, 2026.

View Audit 387860

Finding 1174164 (2025-003)

Material Weakness 2025

Mississinewa Community School Corporation

IN

Procurement, Suspension & Debarment School Nutrition Programs Internal Control / Segregation of Duties § 200.303

FINDING 2025-003 Finding Subject: Child Nutrition Cluster-Suspension and Debarment Contact Person Responsible for Corrective Action: Greg Miller, Food Service Director Contact Phone Number and Email Address: 424 East South A Street. Gas City, IN 46933 (765)-677- 4423 Views of Responsible Officials: ...

FINDING 2025-003 Finding Subject: Child Nutrition Cluster-Suspension and Debarment Contact Person Responsible for Corrective Action: Greg Miller, Food Service Director Contact Phone Number and Email Address: 424 East South A Street. Gas City, IN 46933 (765)-677- 4423 Views of Responsible Officials: Mississinewa Community School Corporation concurs with the finding 2025-003. Description of Corrective Action Plan: An effective internal control system, which would include segregation of duties, was not in place at the School Corporation to ensure compliance with requirements related to the grant agreement and the Procurement and Suspension and Debarment compliance requirement. Corrective Action: Internal Controls regarding Procurement and Suspension and Debarment will be implemented to maintain reasonable assurance of compliance with the Procurement and Suspension and Debarment by requiring the Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion Form as part of the procurement process. Once returned with the RFQ/RFP (request for quote or proposal), the Food Service Director will review with the Business Manager for approval, including both signatures. Additionally, the Business Manager will look up all vendors on the pre-approved Suspension and Debarment vendor website, and those results will be shared with the Food Service Director before the procurement process. All completed forms will be filed with the Business Manager. In addition, CN Director will provide a template letter to the vendor stating that they have not been suspended or debarred from procurement with federal entities. Vendor will be asked to sign the letter and return to the Food Service Director to keep on file at Mississinewa Community Schools. Anticipated Completion Date: January 23, 2026.

View Audit 387860

Finding 1174157 (2025-001)

Material Weakness 2025

Hilltop Residence, Inc.

MN

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

Section 223(f) Mortgage Insurance for the Purchase or Refinance of Existing Multifamily Housing Projects – Assistance Listing No. 14.155 Recommendation: The Project should ensure that all inspection reports are signed by the housing manager and the tenant. Explanation of disagreement with audit find...

Section 223(f) Mortgage Insurance for the Purchase or Refinance of Existing Multifamily Housing Projects – Assistance Listing No. 14.155 Recommendation: The Project should ensure that all inspection reports are signed by the housing manager and the tenant. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will review policies and procedures to ensure compliance is met. Name(s) of the contact person(s) responsible for corrective action: Carol Borgerson, CFO Planned completion date for corrective action plan: December 3, 2025

View Audit 387855

Finding 1174156 (2025-001)

Material Weakness 2025

Montgomery County Housing Authority

TX

HUD Housing Programs Reporting

MONTGOMERY COUNTY HOUSING AUTHORITY 1500 N. Frazier, Ste 101 Conroe, TX 77301 Phone No. (936) 539-4984 Fax No. (936) 539-4758 HOUSING AUTHORITY OF MONTGOMERY COUNTY, TEXAS CORRECTIVE ACTION PLAN YEAR ENDED JUNE 30, 2025 Corrective Action Plan Finding: Finding 2025-001-Non current Valuations and Inad...

MONTGOMERY COUNTY HOUSING AUTHORITY 1500 N. Frazier, Ste 101 Conroe, TX 77301 Phone No. (936) 539-4984 Fax No. (936) 539-4758 HOUSING AUTHORITY OF MONTGOMERY COUNTY, TEXAS CORRECTIVE ACTION PLAN YEAR ENDED JUNE 30, 2025 Corrective Action Plan Finding: Finding 2025-001-Non current Valuations and Inadequate Disclosure for Defined Benefit Pension Plan Condition: All material amounts included in the financial statements should have valuations as of the last day of the audit year. In addition, the footnotes should include all of the disclosures that are required. Both of these elements are required by accounting principles generally accepted in the United States. Corrective Action Planned I am Roxanne Albizuri, Executive Director and Designated Person to answer this finding. We will comply with the auditor’s recommendation. Person responsible for corrective action: Roxanne Albizuri, Executive Director Telephone: (936) 539-4984 Housing Authority of Montgomery County, Texas Fax: (936) 539-4758 1500 N Frazier, Ste 101 Conroe, TX 77301 Anticipated Completion Date: June 30, 2026

View Audit 387841

Finding 1174155 (2025-001)

Material Weakness 2025

Walker River Irrigation District

NV

Cash Management Reporting Internal Control / Segregation of Duties

Issue: The reconciled grant balance for all grant accounts is not compared against the total compostion of all grant accounts maintained in the general ledger's individual grant funds. Corrective Action: Staff will compare all grant account reconciliations agains the total composition of all account...

Issue: The reconciled grant balance for all grant accounts is not compared against the total compostion of all grant accounts maintained in the general ledger's individual grant funds. Corrective Action: Staff will compare all grant account reconciliations agains the total composition of all accounts maintained within the general ledger's indvidual grant funds. Confusion occured this year with a review from NFWF of unallowed expenses that were booked as receivables in a previous fiscal year.

View Audit 387835

Corrective Action Plans

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