Corrective Action Plans

Finding 1156833 (2024-017)

Material Weakness 2024

State of Missouri

MO

Subrecipient Monitoring Matching / Level of Effort / Earmarking HUD Housing Programs § 200.303

State of Missouri Single Audit Corrective Action Plan Year Ended June 30, 2024 State Agency: Department of Higher Education and Workforce Development Audit Finding Number: 2024-017 – DHEWD FFATA Reporting Name of the contact person responsible for corrective action: Elizabeth (Liz) Roberts Anticipat...

State of Missouri Single Audit Corrective Action Plan Year Ended June 30, 2024 State Agency: Department of Higher Education and Workforce Development Audit Finding Number: 2024-017 – DHEWD FFATA Reporting Name of the contact person responsible for corrective action: Elizabeth (Liz) Roberts Anticipated completion date for corrective action: January 1, 2025 Corrective action planned is as follows: In response to the auditor’s report finding, we dedicated a team of staff to review our subaward files for the date range in question. Staff compared our subawards from that time to federal reporting system data and reported any subawards that were missing. We will continue to monitor these historical files for their reported status as we encounter them through the course of our current normal business activities. We have strengthened internal controls related to FFATA reporting for the WIOA cluster, and our new federal award reporting and monitoring process is outlined below: On the fifteenth day of every month following the subaward execution month, staff utilize a spreadsheet populated with subaward data the previous month to enter subaward information for that month into the federal reporting system. After the subawards have been reported in the system, the full subaward report data and their submission receipts (proof of submission) are saved to internal electronic files. Each file now features a descriptive file name to which allows for an easily searchable, historical record. • Files are organized by FY and report month • Each month now includes a spreadsheet of the awards reported • Each report is now categorized by grant, and reports with multiple subawards per grant now contain a cover page with table of contents summarizing the subaward report data included on the subsequent pages with any changes indicated in red • Each file now contains Auditor notes where necessary, indicated in red After the reports are submitted, staff now sends the reports and spreadsheet summary for each month to a supervisor to review, who compares them with each executed subaward notification email sent to the executed subaward notification group in the previous month. The supervisor responds with monitoring results (e.g. missing, incorrect, complete). Reports are adjusted as necessary based on this review. The supervisor’s emailed approval response is saved to the file. DHEWD will provide proper FFATA reporting training to staff. The process outlined above will evolve slightly since, as of March 8, 2025, FSRS.gov has transitioned to SAM.gov. SAM.gov features enhancements that support improved reporting accuracy, such as auto-checking for previously reported subawards to avoid duplication.

View Audit 369219

Finding 1156829 (2024-009)

Material Weakness 2024

State of Missouri

MO

Questioned Costs Subrecipient Monitoring § 200.303 § 200.332 § 200.514

State of Missouri Single Audit Corrective Action Plan Year Ended June 30, 2024 State Agency: Department of Health and Senior Services (DHSS) Audit Finding Number: 2024-009 - CACFP Subrecipient Monitoring Name of the contact person responsible for corrective action: Sarah Walker, Bureau Chief Anticip...

State of Missouri Single Audit Corrective Action Plan Year Ended June 30, 2024 State Agency: Department of Health and Senior Services (DHSS) Audit Finding Number: 2024-009 - CACFP Subrecipient Monitoring Name of the contact person responsible for corrective action: Sarah Walker, Bureau Chief Anticipated completion date for corrective action: Corrective action planned is as follows: The agency does not agree with the audit findings and therefore no corrective action is required. Explanation and specific reasons are as follows: DHSS disagrees with this finding. While the USDA partially sustained the previous finding in the FY2023 SWSA, the corrective action plan and supporting documentation submitted by DHSS was accepted by USDA and deemed adequate. On April 17, 2025, the USDA recommended final action to close the FY2023 audit finding.

View Audit 369219 Questioned Costs: $1

Finding 1156828 (2024-008)

Material Weakness 2024

State of Missouri

MO

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring § 200.303 § 200.403

State of Missouri Single Audit Corrective Action Plan Year Ended June 30, 2024 State Agency: Department of Health and Senior Services (DHSS) Audit Finding Number: 2024-008 - CACFP Subrecipient Reimbursements Name of the contact person responsible for corrective action: Sarah Walker, Bureau Chief Ant...

State of Missouri Single Audit Corrective Action Plan Year Ended June 30, 2024 State Agency: Department of Health and Senior Services (DHSS) Audit Finding Number: 2024-008 - CACFP Subrecipient Reimbursements Name of the contact person responsible for corrective action: Sarah Walker, Bureau Chief Anticipated completion date for corrective action: Corrective action planned is as follows: The agency does not agree with the audit findings and therefore no corrective action is required. Explanation and specific reasons are as follows: Department of Health and Senior Services (DHSS) disagrees with this finding because the previous audit finding in the FY2023 SWSA was not sustained by the federal funding agency, therefore no finding or corrective action is required.

View Audit 369219 Questioned Costs: $1

Finding 1156827 (2024-014)

Material Weakness 2024

State of Missouri

MO

School Nutrition Programs Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303

State of Missouri Single Audit Corrective Action Plan Year Ended June 30, 2024 State Agency: MO Department of Elementary and Secondary Education (DESE) Audit Finding Number: 2024-014 - DESE FFATA Reporting Name of the contact person responsible for corrective action: Shelley Woods Anticipated comple...

State of Missouri Single Audit Corrective Action Plan Year Ended June 30, 2024 State Agency: MO Department of Elementary and Secondary Education (DESE) Audit Finding Number: 2024-014 - DESE FFATA Reporting Name of the contact person responsible for corrective action: Shelley Woods Anticipated completion date for corrective action: 7/1/2025 Corrective action planned is as follows: The agency agrees with the auditor's finding. DESE has changed internal procedures to ensure FFATA reporting follows applicable requirements. DESE is designating a Federal Compliance Coordinator to submit all FFATA reporting as opposed to each section Fiscal Liaison uploading the report. The terms and conditions for each grant award will be reviewed by the Federal Compliance Coordinator to determine if FFATA is applicable, and then the Federal Compliance Coordinator will work the Fiscal Liaison to collect and report the information required under FFATA.

View Audit 369219

Finding 1156820 (2024-001)

Material Weakness 2024

Women for Afghan Women, INC

NY

Allowable Costs / Cost Principles

We will ensure to follow recommendations and be compliant with time allocation requirements. Effective January 2025, WAW transitioned to a new HR and payroll system that addressed this finding, also incorporated periodic review and reconciliation. This change strengthens compliance with 2 CFR 200.43...

We will ensure to follow recommendations and be compliant with time allocation requirements. Effective January 2025, WAW transitioned to a new HR and payroll system that addressed this finding, also incorporated periodic review and reconciliation. This change strengthens compliance with 2 CFR 200.430, which requires that charges to federal awards for salaries and wages be supported by records that accurately reflect the work performed. We also note that during 2024, while timesheet hours were not directly used for reallocating salary costs, WAW had in place a monthly reconciliation process. This included comparing monthly budgeted allocations to total actual expenses and tracking all expenditures to help ensure costs remained reasonable, allocable, and allowable.

View Audit 369210

Finding 1156819 (2024-002)

Material Weakness 2024

Basic Nwfl, Inc.

FL

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

To address the eligibility documentation issue identified during the audit, BASIC NWFL, Inc. will improve how eligibility files are reviewed by using a checklist and having two staff members verify each file. Staff will get regular training on federal rules, and internal checks will be done frequent...

To address the eligibility documentation issue identified during the audit, BASIC NWFL, Inc. will improve how eligibility files are reviewed by using a checklist and having two staff members verify each file. Staff will get regular training on federal rules, and internal checks will be done frequently to catch any problems early. Policies will be updated to make sure marital status and household size are clearly documented, and a eligibility specialist will oversee the process and report monthly to management. These steps will help ensure all eligibility decisions are properly supported.

View Audit 369207

Finding 1156818 (2024-001)

Material Weakness 2024

Gloucester County Division of Social Services

NJ

Eligibility Internal Control / Segregation of Duties

# 1 The workers will be utilizing a checklist to ensure income was verified for all members. DOVE, IEVS, or the portal verification is run for each case. A request for information letter is sent if self-reported income and DOVE/electronic verification is not within 25%. # 2 All renewals will be revi...

# 1 The workers will be utilizing a checklist to ensure income was verified for all members. DOVE, IEVS, or the portal verification is run for each case. A request for information letter is sent if self-reported income and DOVE/electronic verification is not within 25%. # 2 All renewals will be reviewed by a specialist, supervisor, or administrator. When an individual is self-employed we request the most recent income tax form.

View Audit 369199

Finding 1156817 (2024-001)

Material Weakness 2024

Parks & People, Inc.

DC

Procurement, Suspension & Debarment § 200.318 § 200.320

Corrective Action Plan for Finding 2024-01 Type of Finding: Internal Control and Compliance - Compliance and Material Weakness Deficiency over Procurement and Suspension and Debarment Federal Program: U.S. Department of Treasury, American Rescue Plan Act (ARPA) Federal Assistance Listing No.: 21.027...

Corrective Action Plan for Finding 2024-01 Type of Finding: Internal Control and Compliance - Compliance and Material Weakness Deficiency over Procurement and Suspension and Debarment Federal Program: U.S. Department of Treasury, American Rescue Plan Act (ARPA) Federal Assistance Listing No.: 21.027 Condition: During the single audit, there was a finding of no documentation to support a competitive bidding or procurement process for certain vendor contracts, as required by federal procurement standards. Corrective Actions 1. Revise Internal Procurement Policy A. Action: The organization will revise its existing procurement policy to adhere with federal requirements for competitive bidding, including thresholds for different procurement methods (e.g., micro-purchases, small purchases, sealed bids, competitive proposals). The revised policy will clearly define the documentation required for each step of the procurement process. B. Responsible Party: Kimberly Royster (CFO) C. Anticipated Completion Date: October 15, 20252. Provide Mandatory Staff Training A. Action: The organization will train all employees, including those in finance, program management, and administration, on the new procurement policy and process. The training will emphasize the importance of compliance with federal regulations and the specific documentation requirements. B. Responsible Party: Wayne Lawson (HR) and Laura Connelly C. Anticipated Completion Date: November 12, 2025 3. Implement the Revised Procurement and Documentation System A. Action: The organization will implement the new procurement process for all procurement activities. This process will require documentation of all stages of the procurement process, from the initial request to the final contract award. This will ensure that a complete audit trail is maintained for every purchase. B. Responsible Party: Laura Connelly C. Anticipated Completion Date: November 12, 2025 4. Conduct Post-Implementation Monitoring A. Action: The organization will enlist the services of the external audit team to review the updated procedures. This will serve as a check to ensure the new policy meets federal requirements. B. Responsible Party: Current Auditor C. Anticipated Completion Date: December 31, 2025

View Audit 369197

Finding 1156815 (2024-004)

Material Weakness 2024

Florence County

WI

Procurement, Suspension & Debarment § 200.320

2024-004 Coronavirus State and Local Fiscal Recovery Funds– Assistance Listing No. 21.027 Recommendation: We recommend the County follow procurement policy that is in accordance with Uniform Guidance requirements. Explanation of disagreement with audit finding: There is no disagreement with the audi...

2024-004 Coronavirus State and Local Fiscal Recovery Funds– Assistance Listing No. 21.027 Recommendation: We recommend the County follow procurement policy that is in accordance with Uniform Guidance requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will follow procurement policy that is in accordance with Uniform Guidance requirements. Name(s) of the contact person(s) responsible for corrective action: Kim Merrill, Finance Manager. Planned completion date for corrective action plan: December 31, 2025.

View Audit 369191

Finding 1156812 (2024-003)

Material Weakness 2024

Florence County

WI

Allowable Costs / Cost Principles Cash Management Significant Deficiency

DEPARTMENT OF TREASURY 2024-003 Coronavirus State and Local Fiscal Recovery Funds– Assistance Listing No. 21.027 Recommendation: We recommend that there is an appropriate reviewer of journal entry. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Actio...

DEPARTMENT OF TREASURY 2024-003 Coronavirus State and Local Fiscal Recovery Funds– Assistance Listing No. 21.027 Recommendation: We recommend that there is an appropriate reviewer of journal entry. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The amounts reported were accurate and in compliance. The department will continue to train employees in respective positions to ensure responsibilities align with program requirements. Immediately upon discovery of the omission of the review step, management reiterated to department financial staff the importance of the review process. Name(s) of the contact person(s) responsible for corrective action: Kim Merrill, Finance Manager Planned completion date for corrective action plan: December 31, 2025

View Audit 369191

Finding 1156809 (2024-002)

Material Weakness 2024

Housing Authority of the County of Marin

CA

Questioned Costs HUD Housing Programs Special Tests & Provisions

Finding 2024-002: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Assistance Listing Numbers: 14.871, 14.879, 14.EHV Noncompliance – N. Special Tests and Provisions - Housing Quality Standards Non Compliance Material to the Financial S...

Finding 2024-002: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Assistance Listing Numbers: 14.871, 14.879, 14.EHV Noncompliance – N. Special Tests and Provisions - Housing Quality Standards Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Special Tests and Provisions. Criteria: HQS Inspections. Per the Authority's HCV Admin Plan, the PHA must inspect the unit leased to a family biennially in order to determine if the unit meets HQS standards, and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). These inspection reports are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority’s files and on discussion with management there were inspection reports that were unavailable for examination at the time of audit. Context: Of a sample size of thirty-six (36) units, three (3) units did not have biennial HQS inspections performed timely. Our sample size is statistically valid. Known Questioned Costs: $75,684 Cause: There is a material weakness in internal controls over the compliance for the special tests and provisions type of compliance related to HQS inspections. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Housing Choice Vouchers Programs are in material non-compliance with the with the special tests and provisions type of compliance related to HQS inspections. Recommendation: We recommend the Authority design and implement internal control procedures over HQS inspections that will reasonably assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority has recognized the material weakness in the Section 8 Housing Choice Vouchers and Emergency Housing Vouchers programs and will implement internal control procedures that will ensure compliance with federal regulations. Kathleen Wyatt, Director of Housing Operations, will be responsible to implement this corrective action by December 31, 2025.

View Audit 369190 Questioned Costs: $1

Finding 1156808 (2024-001)

Material Weakness 2024

Housing Authority of the County of Marin

CA

Questioned Costs HUD Housing Programs Internal Control / Segregation of Duties

Financial Statement Findings Findings 2024-001 and 2024-002 listed below are also financial statement findings which are required to be reported in accordance with Government Auditing Standards. Federal Award Findings and Questioned Costs Finding 2024-001: Federal Agency: U.S. Department of Housing ...

Financial Statement Findings Findings 2024-001 and 2024-002 listed below are also financial statement findings which are required to be reported in accordance with Government Auditing Standards. Federal Award Findings and Questioned Costs Finding 2024-001: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Assistance Listing Numbers: 14.871, 14.879, 14.EHV Noncompliance – E. Eligibility – Tenant Files Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Eligibility Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). These files are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were documents that were unavailable for examination at the time of audit. Context: There are approximately 2,533 units. Of a sample size of thirty-six (36) tenant files, the following was noted: • Verification of income was unable to be recalculated in 4 files • Verification of assets was unable to be provided in 1 file • HUD 50058 annual recertification was not filed timely in 2 files • Citizen Declaration Section 214 form was unable to be provided in 9 files Our sample size is statistically valid. Known Questioned Costs: $84,235 Cause: There is a material weakness in the Housing Voucher Cluster in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Housing Voucher Cluster Programs are in material non-compliance with the eligibility type of compliance related to the maintenance of tenant files. Recommendation: We recommend the Authority design and implement internal control procedures over the maintenance of tenant files that will assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Housing Voucher Cluster to ensure that established internal control policies are being followed on a timely basis. Kathleen Wyatt, Director of Housing Operations, will be responsible to implement this corrective action by December 31, 2025.

View Audit 369190 Questioned Costs: $1

Finding 1156805 (2024-002)

Material Weakness 2024

County of Mercer

PA

Reporting Internal Control / Segregation of Duties

Finding 2024-002 – COVID-19 Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) ALN 21.027 U.S. Department of Treasury Auditor's Recommendation: We recommend the County ensure proper correction of preciously submitted reports. Corrective Action Plan: After reporting an expenditure of State an...

Finding 2024-002 – COVID-19 Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) ALN 21.027 U.S. Department of Treasury Auditor's Recommendation: We recommend the County ensure proper correction of preciously submitted reports. Corrective Action Plan: After reporting an expenditure of State and Local Fiscal Recovery Funds in 2024, we elected to use other funds for that project. Because the U.S. Treasury website does not provide for correction of prior periods, we were not able to reflect that change in our report for December 31, 2024. We made the correction in our cumulative report at June 30, 2025. Our SLFRF reports are now correct. In addition we have established a review procedure for all planned expenditures of SLFRF funds to coordinate approvals of Purchasing, Fiscal, and Controller offices to assure proper identification of funding sources and consistency with grant specifications.

View Audit 369188

Finding 1156804 (2024-003)

Material Weakness 2024

National Urban League, Inc.

NY

Procurement, Suspension & Debarment

Audit Finding Reference: 2024-003 (Procurement and Suspension and Debarment) Planned Corrective Action: One of the twenty-nine agreements issued under the U.S. Department of Health and Human Services: Federal Assistance Listing #93.185 – COVID-19 – Immunization Research, Demonstration, Public Inform...

Audit Finding Reference: 2024-003 (Procurement and Suspension and Debarment) Planned Corrective Action: One of the twenty-nine agreements issued under the U.S. Department of Health and Human Services: Federal Assistance Listing #93.185 – COVID-19 – Immunization Research, Demonstration, Public Information and Education Training and Clinical Skills Improvement Project contained a clerical omission of the required suspension and debarment provisions. NUL amended the executed contract in 2025 to include the required suspension and debarment provisions. To prevent recurrence, NUL will: • Perform and document SAM.gov suspension and debarment check prior to contract execution, • Incorporate suspension and debarment clauses and BABA provisions into all applicable contracts at the outset, • Use a contract compliance checklist to ensure all required federal clauses are present before execution, and • Provide staff training and implement a centralized tracking system to monitor compliance. NUL remains committed to maintaining strong internal controls and ensuring full compliance with federal reporting and procurement requirements. Name and Title of Contact Persons: Sidney Evans Jr. Sr. Vice President/Chief Financial Officer

View Audit 369187

Finding 1156803 (2024-002)

Material Weakness 2024

National Urban League, Inc.

NY

Procurement, Suspension & Debarment Subrecipient Monitoring

Audit Finding Reference: 2024-002 (Procurement, Suspension and Debarment, and Build America, Buy America) Planned Corrective Action: Certain and key contracts were executed prior to the execution of the related U.S. Department of Housing and Urban Development: Federal Assistance Listing #14.251 – Ec...

Audit Finding Reference: 2024-002 (Procurement, Suspension and Debarment, and Build America, Buy America) Planned Corrective Action: Certain and key contracts were executed prior to the execution of the related U.S. Department of Housing and Urban Development: Federal Assistance Listing #14.251 – Economic Development Initiative, Community Project Funding, and Miscellaneous Grants awards or contained clerical omissions, resulting in the absence of suspension and debarment verification, BABA clauses, or documentation in some agreements. These issues have since been corrected—NUL amended or executed contracts in 2025 to include the required suspension and debarment provisions, incorporated BABA requirements where applicable, and obtained contractor representations to ensure compliance. While, the amendments occurred after the initial execution of the contract, NUL has taken the necessary effort to include this language in all contracts, regardless of funded with federal funds or not. To prevent recurrence, NUL will: • Perform and document SAM.gov suspension and debarment check prior to contract execution, • Incorporate suspension and debarment clauses and BABA provisions into all applicable contracts at the outset, • Use a contract compliance checklist to ensure all required federal clauses are present before execution, and • Provide staff training and implement a centralized tracking system to monitor compliance. NUL remains committed to maintaining strong internal controls and ensuring full compliance with federal reporting and procurement requirements.

View Audit 369187

Finding 1156802 (2024-001)

Material Weakness 2024

National Urban League, Inc.

NY

Reporting HUD Housing Programs Period of Performance

Audit Finding Reference: 2024-001 (Reporting) Planned Corrective Action: NUL acknowledges the reporting requirements outlined in Article VI of the FY22 and FY24 CPF Grant Agreements with HUD. We respectfully note, however, that while we are fully aware of these reporting requirements, we were unable...

Audit Finding Reference: 2024-001 (Reporting) Planned Corrective Action: NUL acknowledges the reporting requirements outlined in Article VI of the FY22 and FY24 CPF Grant Agreements with HUD. We respectfully note, however, that while we are fully aware of these reporting requirements, we were unable to submit the required reports because the Disaster Recovery Grant Reporting (DRGR) system was not available for submissions during the relevant periods. As such, even if we had attempted to file, submission could not have occurred due to the system’s unavailability. We were in contact with the administrators of HUD on a regular basis during the reporting period. Both HUD and NUL were fully aware of the DRGR system short falls. We emphasize that NUL maintains a strong record of timely and accurate federal reporting and does not typically experience issues with missed or late submissions. This instance is an isolated occurrence and is not reflective of our overall compliance practices. Once the DRGR system becomes available, NUL will promptly submit all required FY22 and FY24 reports to ensure compliance. To further strengthen our processes, NUL is committed to implementing a financial reporting calendar to supplement our existing internal controls and ensure continued timely compliance with all reporting obligations. This reporting calendar will be disseminated to all NUL departments that work with and are responsible for federal grant reporting.

View Audit 369187

Finding 1156801 (2024-001)

Material Weakness 2024

Louisville Housing Opportunities and Micro-Enterprise Community Develo

KY

Reporting Matching / Level of Effort / Earmarking

September 26, 2025 Response to Findings – Views of Responsible Officials and Corrective Active Plan LHOME respectfully submits the following response to the federal award finding for the year ending December 31, 2024. Hicks and Associates, CPAs, PLLC 1795 Alysheba Way, Suite 6206 Lexington, KY 40509...

September 26, 2025 Response to Findings – Views of Responsible Officials and Corrective Active Plan LHOME respectfully submits the following response to the federal award finding for the year ending December 31, 2024. Hicks and Associates, CPAs, PLLC 1795 Alysheba Way, Suite 6206 Lexington, KY 40509 Audit Period: January 1, 2024 – December 31, 2024 The findings from the FYE December 31, 2024, schedule of findings and questioned costs are discussed below and include LHOME’s management responses. Finding: 2024-001 Reporting – Performance Goals and Measures RECOMMENDATION: We recommend that LHOME attempt to expand its target reach by increasing marketing and by optimizing its products and services to appeal to new customers/borrowers. LHOME could also collaborate with CDFI and their recommendations on meeting federal program benchmarks when external factors are present and influential. RESPONSE: LHOME entered into a grant agreement in February 2023 to launch a new “strong roots” program. The grant performance goals and metrics (PG&M) were determined based on the grant application. The strong roots program supported loans to existing businesses with at least two years of operating history and focused on expansion. The minimum loan amount for the strong roots program was $50,000. The first period of performance (POP) ending December 31, 2024 and the goal was to disburse $437,500 through the strong roots program. The rules to prorate PG&Ms to match the cash award were not yet in place within the CDFI. LHOME successfully disbursed $125,000 in loans but below the goal of $437,500, creating the instance of non-compliance. No sanctions were imposed by the CDFI since this is the first POP for the grant. Response to Findings – Views of Responsible Officials and Corrective Active Plan - continued This shortfall is primarily due to the following factors: • CDFI rules require full achievement of goals stated in the application regardless of the awarded amount. Goals are not prorated to align with the actual cash award. • Restricted cash flow among prospective borrowers, limiting their ability to qualify for larger loans. • Declining consumer confidence and increased inflation, resulting in lower demand and a shift toward smaller loan requests. • Economic instability and increased delinquency rates on existing loans, creating additional pressure on organizational cash flows. • Launching a new loan product in a challenging economic environment, which required more time for market acceptance and borrower readiness. Corrective Actions: 1. Request a grant amendment to decrease Performance Goals and Metrics to align with the actual cash award. 2. Strengthen Market Outreach and Referral Networks • Expand marketing activities to increase awareness of the grant-funded loan product. • Partner with local banks, credit unions, business development organizations, and technical assistance providers to increase referrals and reach businesses that meet the loan size criteria. • Use targeted campaigns focusing on businesses with demonstrated growth potential. 3. Enhance Borrower Readiness and Capacity • Work closely with external development service providers to ensure their understanding of LHOME’s underwriting requirements. • Require external development to address cash flow issues, strengthen financial statements, and prepare borrowers to qualify for larger loans. 4. Develop a Business Incubator Program • Explore the development of a business incubator designed for existing businesses with growth potential, offering technical assistance, mentorship, and access to financing pathways. • Provide some structured support to help businesses scale operations to qualify for $50,000+ loans. Through the combined efforts of grant amendments, expanded marketing, targeted development, and stronger partnerships, LHOME is expected to meet performance goals and metrics for the CDFI compliance by the end of fiscal year 2025. Respectfully, Keith Talley, Sr President & CEO

View Audit 369186

Finding 1156800 (2024-001)

Material Weakness 2024

Asylee Women Enterprise, Inc.

MD

Reporting

The Organization is aware that the SF-SAC form should be filed the earlier of nine (9) months after the Organization's year end or thirty (30) days after delivery of the financial statements. The SF-SAC for fiscal year ending December 31, 2024, was filed the earlier of nine (9) months after the orga...

The Organization is aware that the SF-SAC form should be filed the earlier of nine (9) months after the Organization's year end or thirty (30) days after delivery of the financial statements. The SF-SAC for fiscal year ending December 31, 2024, was filed the earlier of nine (9) months after the organization's year end.

View Audit 369181

Finding 1156799 (2024-002)

Material Weakness 2024

City of New Philadelphia

OH

Subrecipient Monitoring Reporting Significant Deficiency § 200.328

The City will review its process for accumulating data for required reports and implement additional procedures to reconcile reports with cash basis activities.

View Audit 369179

Finding 1156798 (2024-002)

Material Weakness 2024

Godman Guild Association and Subsidiaries

OH

Subrecipient Monitoring Reporting

Finding Number: 2024-02 Condition: Monthly invoices were identiﬁed as being ﬁled with the pass-through grantor after the deadline. No State Outcome Reports were submitted. Planned Corrective Action: The Godman Guild Association has been working closely with grantors to clarify invoice templates, dea...

Finding Number: 2024-02 Condition: Monthly invoices were identiﬁed as being ﬁled with the pass-through grantor after the deadline. No State Outcome Reports were submitted. Planned Corrective Action: The Godman Guild Association has been working closely with grantors to clarify invoice templates, deadlines, and reporting requirements, particularly for contracts with outdated or no longer applicable provisions. For example, some contracts with federal attachments refer to state outcome reports, which are not required. Additionally, the Association did not receive original signed contracts at the start of the grant period. This created initial timing challenges in meeting invoicing and reporting deadlines. Moving forward, the Godman Guild Association will request formal addenda from grantors to document any changes to invoicing deadlines or reporting requirements and will make every reasonable eﬀort to secure these addenda. Contact Person Responsible for Corrective Action: Solonas Karoulla, Chief Advancement Oﬃcer – solo.karoulla@godmanguild.org Anticipated Completion Date: November 1, 2025

View Audit 369176

Finding 1156796 (2024-002)

Material Weakness 2024

Mzc Foundation Inc.

GA

Procurement, Suspension & Debarment § 200.303

Recommendation: We recommend the Foundation strengthen its policies and procedures to ensure suspension and debarment is adequately documented for that goods and services purchased in accordance with Uniform Guidance and other federal guidelines. In addition, the Foundation should verify that all ve...

Recommendation: We recommend the Foundation strengthen its policies and procedures to ensure suspension and debarment is adequately documented for that goods and services purchased in accordance with Uniform Guidance and other federal guidelines. In addition, the Foundation should verify that all vendors under covered transactions are not listed on the excluded parties list system by performing a search on sam.gov and maintaining the results of such search in the vendor’s file. Grantee Response and Corrective Action Plan 2024-002: In response to the audit finding under 2 CFR part 180 regarding the necessity to verify suspension or debarment status in compliance with the excluded parties list system, it is acknowledged that while the Foundation did not previously have a formal policy specifically addressing suspension and debarment, our practices have nonetheless complied with the requirements. Recognizing the importance of formalizing these practices into policy, we are committed to developing and implementing a comprehensive policy that explicitly addresses these checks. In line with our recent enhancements in internal controls, including the engagement of aFinance Manager in 2024, this policy will reinforce our ongoing efforts to uphold the highest standards of compliance and accountability in all our operations. Responsible Parties: Allie Kelly, Executive Director Anticipated Correction Date: December 31, 2025

View Audit 369173

Finding 1156795 (2024-001)

Material Weakness 2024

Mzc Foundation Inc.

GA

Procurement, Suspension & Debarment Internal Control / Segregation of Duties Eligibility § 200.303 § 200.320

Recommendation: We recommend the Foundation strengthen its policies and procedures to ensure procurement is adequately documented for the goods and services purchased in accordance with Uniform Guidance and other federal guidelines, including simplified acquisition procedures for purchases above the...

Recommendation: We recommend the Foundation strengthen its policies and procedures to ensure procurement is adequately documented for the goods and services purchased in accordance with Uniform Guidance and other federal guidelines, including simplified acquisition procedures for purchases above the micro-purchase threshold ($10,000). Grantee Response and Corrective Action Plan 2024-001: In response to the audit finding under 2 CFR Section 200.320 regarding the necessity to have and use documented procurement procedures for acquisition of goods and services under a federal award or a sub‐award, it is acknowledged that the Foundation did not previously have a formal policy specifically addressing procurement. Recognizing the importance of formalizing these practices into policy, we are committed to developing and implementing a comprehensive policy that explicitly addresses procurement. In line with our recent enhancements in internal controls, including the engagement of a Finance Manager in 2024, this policy will reinforce our ongoing efforts to uphold the highest standards of compliance and accountability in all our operations. Responsible Parties: Allie Kelly, Executive Director Anticipated Correction Date: December 31, 2025

View Audit 369173

Finding 1156788 (2024-002)

Material Weakness 2024

Mississippi Public Health Institute

MS

Questioned Costs Allowable Costs / Cost Principles Cash Management

AUDITEE’S CORRECTIVE ACTION PLAN As required by 2CFR Section 200.511 of the Uniform Guidance, Mississippi Public Health Institute has prepared and hereby submits the following corrective action plan for the findings included in the Schedule of Findings and Questions Costs for the year ended December...

AUDITEE’S CORRECTIVE ACTION PLAN As required by 2CFR Section 200.511 of the Uniform Guidance, Mississippi Public Health Institute has prepared and hereby submits the following corrective action plan for the findings included in the Schedule of Findings and Questions Costs for the year ended December 31, 2024: Federal Award Findings and Questioned Costs 2024-002 Unallowable Costs Criteria - The Uniform Guidance states that any federal share of allowable costs must be refunded to the government. During our audit, we noticed an instance of duplicate expenditures being recorded. Reimbursement was requested and received for these costs from the Racial and Ethnic Approaches to Community Health program under ALN 93.304. This occurred through a single vendor, for which it was noted that the vendor had sent duplicate invoices, and MSPHI recorded both invoices. Recommendation - We recommend the implementation of IT controls to prevent duplicate invoice numbers to be recorded. Corrective Action Plan - Mississippi Public Health Institute will increase oversight of grant expenditures and drawdowns to improve reconciliation accuracy. Position of Responsible Official – John Davis, Chief Financial Officer Anticipated Completion Date – Completed after brought to client’s attention. August 31st, 2025.

View Audit 369168 Questioned Costs: $1

Finding 1156787 (2024-001)

Material Weakness 2024

Cat Spring Volunteer Fire Department

TX

Allowable Costs / Cost Principles

The Department will establish procurement policies and procedures to include federal contract provisions and will establish and adopt written policies for federal awards.

View Audit 369157

Finding 1156786 (2024-001)

Material Weakness 2024

Delta Partners Manor II

MS

HUD Housing Programs Significant Deficiency

Delta Partners Manor II, Inc. (the "Project") respectfully submits the following corrective action plan for the year ended December 31, 2024. Audit Firm: Harper, Rains, Knight & Company, P.A. 1052 Highland Colony Parkway, Suite 100 Ridgeland, MS 39157 Audit Period: Year Ended December 31, 2024 Audit...

Delta Partners Manor II, Inc. (the "Project") respectfully submits the following corrective action plan for the year ended December 31, 2024. Audit Firm: Harper, Rains, Knight & Company, P.A. 1052 Highland Colony Parkway, Suite 100 Ridgeland, MS 39157 Audit Period: Year Ended December 31, 2024 Audit Finding Reference: 2024-001 Planned Corrective Action: Management will make an additional deposit to meet requirement and implement controls to ensure that all required deposits are made. Name of Contact Person: If the U. S. Department of Housing and Urban Development for audit has questions regarding this plan, please call Scott Russell at 601-856-2362.

View Audit 369152

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