Corrective Action Plans

Finding 1215731 (2025-001)

Material Weakness 2025

MN

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.214

2025-001: Lack of Documentation of Suspension/Debarment Testing at Time of Procurement Federal Department: Department of Treasury Assistance Listing #: 21.027 Internal Controls Material Weakness & Noncompliance Category of Finding – Procurement, Suspension, and Debarment Name of contact person: Nanc...

2025-001: Lack of Documentation of Suspension/Debarment Testing at Time of Procurement Federal Department: Department of Treasury Assistance Listing #: 21.027 Internal Controls Material Weakness & Noncompliance Category of Finding – Procurement, Suspension, and Debarment Name of contact person: Nancy Cashman, Executive Director Corrective Action: Management plans to ensure, with all contracts, that the vendors sign a statement, either included in the contract or as a rider to the contract which confirms that they are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by a federal department or agency. Completion Date: May 5, 2026

View Audit 402404

Finding 1215730 (2025-004)

Material Weakness 2025

YWCA of Greater Portland

OR

Questioned Costs Reporting Internal Control / Segregation of Duties

Management acknowledges the late submission and attributes the delay primarily to senior management turnover occurring during the audit completion period. Management has taken corrective action by clarifying roles and responsibilities for Single Audit submissions, establishing internal timelines ali...

Management acknowledges the late submission and attributes the delay primarily to senior management turnover occurring during the audit completion period. Management has taken corrective action by clarifying roles and responsibilities for Single Audit submissions, establishing internal timelines aligned with Uniform Guidance deadlines, and assigning oversight responsibility to ensure future Data Collection Forms and reporting packages are submitted timely.

View Audit 402403

Finding 1215729 (2025-003)

Material Weakness 2025

YWCA of Greater Portland

OR

Questioned Costs Allowable Costs / Cost Principles Significant Deficiency § 200.430

Management agrees with the finding. The Agency’s current approach was designed to balance compliance needs with limited resources. Management will assess feasible improvements to its documentation practices to enhance support for payroll allocations to federal awards while remaining mindful of fundi...

Management agrees with the finding. The Agency’s current approach was designed to balance compliance needs with limited resources. Management will assess feasible improvements to its documentation practices to enhance support for payroll allocations to federal awards while remaining mindful of funding and staffing constraints.

View Audit 402403

Finding 1215726 (2025-003)

Material Weakness 2025

Baldwin Care Center, Inc.

WI

Matching / Level of Effort / Earmarking

2025-003 – Noncompliance with Required Debt Covenant Financial Ratio Federal Agency: U.S. Department of Agriculture, Rural Development, CFDA #10.766 Community Facilities Loans and Grants Cluster Corrective Action Plan: Management will continue to evaluate the Facility’s resident mix and manage resid...

2025-003 – Noncompliance with Required Debt Covenant Financial Ratio Federal Agency: U.S. Department of Agriculture, Rural Development, CFDA #10.766 Community Facilities Loans and Grants Cluster Corrective Action Plan: Management will continue to evaluate the Facility’s resident mix and manage resident days while continuing to contain related variable and fixed expenses to increase the Facility’s profitability. Responsible Party: Mariah Voeltz, Administrator Estimated completion date: June 30, 2026

View Audit 402402

Finding 1215724 (2025-002)

Material Weakness 2025

THE DIAPER BANK OF CONNECTICUT, INC.

CT

Internal Control / Segregation of Duties

The Organization will implement procedures to ensure that the grant reports filed are reconciled back to the underlying accounting data to ensure that both the grant reports and financial records are complete and accurate.

View Audit 402398

Finding 1215723 (2025-001)

Material Weakness 2025

THE DIAPER BANK OF CONNECTICUT, INC.

CT

Internal Control / Segregation of Duties Reporting

The Organization will implement procedures to ensure that the financial statements are prepared in accordance with generally accepted accounting principles. We will expand our staff to include a contracted Chief Financial Officer that has an understanding of US GAAP nonprofit accounting in order to ...

The Organization will implement procedures to ensure that the financial statements are prepared in accordance with generally accepted accounting principles. We will expand our staff to include a contracted Chief Financial Officer that has an understanding of US GAAP nonprofit accounting in order to provide the necessary amount of oversight such that our financial reporting on a monthly. quarterly, and annual basis will be in line with US GAAP principles

View Audit 402398

Finding 1215720 (2025-001)

Material Weakness 2025

Monroe School District No. 103

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Material Weakness

The district will implement a process to create and maintain documentation for supplemental contracts and substitute employees serving in vacant positions that clearly identifies the applicable cost objectives and includes employee signatures. These records will be retained and maintained for audit ...

The district will implement a process to create and maintain documentation for supplemental contracts and substitute employees serving in vacant positions that clearly identifies the applicable cost objectives and includes employee signatures. These records will be retained and maintained for audit purposes.

View Audit 402385

Finding 1215718 (2025-001)

Material Weakness 2025

Indiana Association of Soil and Water Conservation Districts, Inc.

IN

Matching / Level of Effort / Earmarking

Auditee: Indiana Association of Soil and Water Conservation Districts, Inc. Audit Firm: Agresta, Storms & O’Leary, PC Audit Period Ended September 30, 2025 Corrective Action Plan Prepared by: Name: Elizabeth Rice Position: Executive Director, Indiana Association of Soil and Water Conservation Distri...

Auditee: Indiana Association of Soil and Water Conservation Districts, Inc. Audit Firm: Agresta, Storms & O’Leary, PC Audit Period Ended September 30, 2025 Corrective Action Plan Prepared by: Name: Elizabeth Rice Position: Executive Director, Indiana Association of Soil and Water Conservation Districts, Inc. Telephone Number: 317-692-7325 A. Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Finding No. 2025-001 A. Comments on the Finding and Each Recommendation: Management agrees with the finding which was internally discovered during review of month end bank reconciliation. B. Action Taken or Planned on the Finding: Subsequent to year end, the Association reduced the December 2025 claim to account for the overpayment. Management will ensure any future discrepancies with claims are remedied in a timely manner.

View Audit 402382

Finding 1215717 (2025-001)

Material Weakness 2025

Trinity Housing CORP of Greeley

CO

Questioned Costs Subrecipient Monitoring

Finding #2025-001 Comments on the Finding and Each Recommendation: During the year ended October 31, 2025, the Corporation made cash distributions of $36,802 to pay entity expenses. Action(s) taken or planned on the finding: Management agrees with the finding and the Board of Directors will reimburs...

Finding #2025-001 Comments on the Finding and Each Recommendation: During the year ended October 31, 2025, the Corporation made cash distributions of $36,802 to pay entity expenses. Action(s) taken or planned on the finding: Management agrees with the finding and the Board of Directors will reimburse the Corporation for the entity expenses paid.

View Audit 402381

Finding 1215710 (2025-003)

Material Weakness 2025

Marysville School District No. 25

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Internal Control / Segregation of Duties

The District concurs with the finding and will implement a comprehensive corrective action plan to strengthen internal controls over time-and-effort reporting and ensure full compliance with federal regulations and OSPI guidance, including OSPI Bulletin 039-24. Specifically, the District will: • Con...

The District concurs with the finding and will implement a comprehensive corrective action plan to strengthen internal controls over time-and-effort reporting and ensure full compliance with federal regulations and OSPI guidance, including OSPI Bulletin 039-24. Specifically, the District will: • Conduct a districtwide review of all federally funded positions to ensure appropriate time-and-effort documentation requirements are identified and applied. • Implement standardized procedures for time-and-effort documentation, including the use of semi-annual certifications, monthly personnel activity reports (PARs), or approved fixed schedule systems, as applicable. • Revise and formalize written procedures governing time-and-effort reporting to ensure clarity, consistency, and compliance. • Establish a secondary review process to verify completeness and accuracy of employee classifications and required documentation. • Provide training to applicable staff on time-and-effort requirements and documentation standards. • Implement ongoing monitoring and periodic internal reviews to ensure documentation is completed timely, properly approved, and retained in accordance with requirements. These actions are designed to ensure payroll costs charged to federal programs are fully supported, accurate, and compliant with applicable laws and regulations.

View Audit 402363

Finding 1215706 (2025-004)

Material Weakness 2025

Marysville School District No. 25

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Internal Control / Segregation of Duties

The District concurs with the finding and will implement a comprehensive corrective action plan to strengthen internal controls over time-and-effort reporting and ensure full compliance with federal regulations and OSPI guidance, including OSPI Bulletin 039-24. Specifically, the District will: • Con...

The District concurs with the finding and will implement a comprehensive corrective action plan to strengthen internal controls over time-and-effort reporting and ensure full compliance with federal regulations and OSPI guidance, including OSPI Bulletin 039-24. Specifically, the District will: • Conduct a districtwide review of all federally funded positions to ensure appropriate time-and-effort documentation requirements are identified and applied. • Implement standardized procedures for time-and-effort documentation, including the use of semi-annual certifications, monthly personnel activity reports (PARs), or approved fixed schedule systems, as applicable. • Revise and formalize written procedures governing time-and-effort reporting to ensure clarity, consistency, and compliance. • Establish a secondary review process to verify completeness and accuracy of employee classifications and required documentation. • Provide training to applicable staff on time-and-effort requirements and documentation standards. • Implement ongoing monitoring and periodic internal reviews to ensure documentation is completed timely, properly approved, and retained in accordance with requirements. These actions are designed to ensure payroll costs charged to federal programs are fully supported, accurate, and compliant with applicable laws and regulations.

View Audit 402363

Finding 1215701 (2025-002)

Material Weakness 2025

Marysville School District No. 25

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Internal Control / Segregation of Duties

The District concurs with the finding and will implement a comprehensive corrective action plan to strengthen internal controls over time-and-effort reporting and ensure full compliance with federal regulations and OSPI guidance, including OSPI Bulletin 039-24. Specifically, the District will: • Con...

The District concurs with the finding and will implement a comprehensive corrective action plan to strengthen internal controls over time-and-effort reporting and ensure full compliance with federal regulations and OSPI guidance, including OSPI Bulletin 039-24. Specifically, the District will: • Conduct a districtwide review of all federally funded positions to ensure appropriate time-and-effort documentation requirements are identified and applied. • Implement standardized procedures for time-and-effort documentation, including the use of semi-annual certifications, monthly personnel activity reports (PARs), or approved fixed schedule systems, as applicable. • Revise and formalize written procedures governing time-and-effort reporting to ensure clarity, consistency, and compliance. • Establish a secondary review process to verify completeness and accuracy of employee classifications and required documentation. • Provide training to applicable staff on time-and-effort requirements and documentation standards. • Implement ongoing monitoring and periodic internal reviews to ensure documentation is completed timely, properly approved, and retained in accordance with requirements. These actions are designed to ensure payroll costs charged to federal programs are fully supported, accurate, and compliant with applicable laws and regulations.

View Audit 402363

Finding 1215698 (2025-001)

Material Weakness 2025

Fife School District No.417

WA

School Nutrition Programs Subrecipient Monitoring Eligibility

The District reviewed the existing internal controls for compliance with federal eligibility requirements and have added additional management oversight of existing processes to improve completeness. In addition, the district will implement process improvements to increase transparency of record ret...

The District reviewed the existing internal controls for compliance with federal eligibility requirements and have added additional management oversight of existing processes to improve completeness. In addition, the district will implement process improvements to increase transparency of record retention.

View Audit 402354

Finding 1215695 (2025-002)

Material Weakness 2025

Home Share 092-Hd017

MN

HUD Housing Programs Internal Control / Segregation of Duties Material Weakness

Supportive Housing for Persons with Disabilities (Section 811) – Assistance Listing No. 14.181 Recommendation: We recommend that management establish and implement a formal internal control to ensure that someone who did not prepare the HAP Voucher reviews them for accuracy before submission. The pr...

Supportive Housing for Persons with Disabilities (Section 811) – Assistance Listing No. 14.181 Recommendation: We recommend that management establish and implement a formal internal control to ensure that someone who did not prepare the HAP Voucher reviews them for accuracy before submission. The preparation and review should be documented with a signature and date to ensure there is a proper audit trail. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We will strengthen our internal controls by implementing a formal, documented review process to ensure that all monthly HAP Vouchers receive an independent review prior to submission to HUD. Beginning with the next reporting cycle, our HUD Consultant will be responsible for preparing the monthly HAP Voucher and assembling all supporting documentation. Once prepared, the voucher package will be forwarded to the Contract Accountant for an independent review. The Contract Accountant will verify the accuracy and completeness of the voucher, including agreement to tenant ledgers, mathematical accuracy, proper application of subsidy rules, and consistency with prior month activity. This review will be documented through a dated signature on the voucher cover sheet, establishing a clear audit trail and ensuring appropriate segregation of duties between preparation and review. This control will be incorporated into the monthly close process and performed consistently going forward to ensure accurate, compliant, and fully supported HAP Voucher submissions. Name(s) of the contact person(s) responsible for corrective action: Jes Cuoco Planned completion date for corrective action plan: April 1, 2026

View Audit 402351

Finding 1215693 (2025-001)

Material Weakness 2025

Home Share 092-Hd017

MN

HUD Housing Programs Cash Management Material Weakness

Supportive Housing for Persons with Disabilities (Section 811) – Assistance Listing No. 14.181 Recommendation: We recommend that management establish and implement formal written policies and procedures to ensure surplus cash is either used to pay down debts subject to surplus cash or deposited in t...

Supportive Housing for Persons with Disabilities (Section 811) – Assistance Listing No. 14.181 Recommendation: We recommend that management establish and implement formal written policies and procedures to ensure surplus cash is either used to pay down debts subject to surplus cash or deposited in the residual receipts reserve in a timely manner in accordance with HUD requirements and the project’s Regulatory Agreement. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We have strengthened our internal controls by implementing a documented audit trail and a formal monthly reconciliation process for all intercompany activity between Home Share and Accord. Each month, the Contract Accountant prepares and submits to the Vice President of Finance a summary of the year to date activity along with the full outstanding intercompany balance, including prior year amounts. The Vice President of Finance reviews this reconciliation against the Home Share account balances to determine the amount that can be transferred to reduce the intercompany liability in accordance with HUD surplus cash requirements. Once the transfer is approved and completed, the Contract Accountant receives confirmation along with a copy of the ACH transaction to document the transaction. This process is performed and documented as part of each month end close to ensure timely, accurate, and compliant surplus cash transfers. Name(s) of the contact person(s) responsible for corrective action: Jes Cuoco Planned completion date for corrective action plan: May 31, 2025

View Audit 402351

Finding 1215691 (2025-002)

Material Weakness 2025

Vaughn College of Aeronautics and Technology

NY

Student Financial Aid

Finding No. 2025-002 – Special Tests and Provisions – NSLDS Reporting – Compliance and Internal Control (Significant Deficiency) Corrective Action Plan: The registrar will complete a 100% audit of the withdrawals for Fall 2025 and Spring 2026 to verify that the dates the students were withdrawn in t...

Finding No. 2025-002 – Special Tests and Provisions – NSLDS Reporting – Compliance and Internal Control (Significant Deficiency) Corrective Action Plan: The registrar will complete a 100% audit of the withdrawals for Fall 2025 and Spring 2026 to verify that the dates the students were withdrawn in the Student Information System matches the dates the students signed the Total Withdrawal or Add/Drop forms. Anticipated Completion Date: The audit should be completed by the end of June 2026. Starting the Summer 2026 semester, the withdrawal dates in Sonis and the dates the students sign the Total Withdrawal or Add/Drop forms will be verified on a weekly basis. Person(s) Responsible for Corrective Action: Evelyn M. Bryant Assistant Vice President of Registrar Services 910-257-3452

View Audit 402343

Finding 1215689 (2025-001)

Material Weakness 2025

Vaughn College of Aeronautics and Technology

NY

Student Financial Aid Internal Control / Segregation of Duties Questioned Costs

Finding No. 2025-001 – Reporting – Compliance and Internal Control (Significant Deficiency) Corrective Action Plan: The discrepancies identified during the current audit were determined to be timing-related issues associated with the transition and implementation of revised disbursement reporting an...

Finding No. 2025-001 – Reporting – Compliance and Internal Control (Significant Deficiency) Corrective Action Plan: The discrepancies identified during the current audit were determined to be timing-related issues associated with the transition and implementation of revised disbursement reporting and reconciliation procedures in order to address a similar compliance finding that was identified in the 2024 Single Audit. These discrepancies occurred while updated controls and monitoring processes were being fully integrated into daily operations. During the prior audit conducted on April 6, 2025, auditors identified discrepancies between institutional disbursement dates and the dates reflected in the Common Origination and Disbursement (COD) system for the 2023-2024 award year. Immediately upon identification of the issue in the 2024 Single Audit, the institution implemented corrective measures to ensure that institutional disbursement dates matched Common Origination and Disbursement (COD) reporting. Since May 2025, the following corrective actions have already been fully implemented: 1. Revised and strengthened reconciliation procedures between the Student Information System and COD to ensure accurate disbursement date reporting. 2. Implemented secondary review controls prior to transmitting disbursement records to COD. 3. Established ongoing internal monitoring and periodic reconciliation reviews to identify and resolve discrepancies promptly. 4. Conducted additional staff training regarding Title IV disbursement reporting requirements and COD reconciliation procedures. 5. Assigned designated personnel responsibility for continuous oversight and verification of disbursement date accuracy. 6. Corrected disbursement reporting processes to ensure institutional records align with COD reporting requirements moving forward. Anticipated Completion Date: Since May 2025, the institution has taken all necessary measures to address and correct the identified issues on a prospective basis. All corrective actions outlined above are currently in place and operational. The institution continues to monitor disbursement reporting and reconciliation processes to ensure ongoing compliance with federal Title IV regulations and accurate reporting to COD. Person(s) Responsible for Corrective Action: Beatriz Novoa-Cruz Associate Vice President of Enrollment 718-429-6600 ext. 114

View Audit 402343

Finding 1215687 (2025-003)

Material Weakness 2025

CITY OF LICKING

MO

Questioned Costs Procurement, Suspension & Debarment Allowable Costs / Cost Principles

The City agrees with the finding and will implement the following: (1) develop written policies and procedures to ensure compliance with Uniform Guidance (2 CFR 200), (2) formally adopt the policies and procedures, and (3) distribute policies and train staff on the new procudures.

View Audit 402340

Finding 1215686 (2025-002)

Material Weakness 2025

Renton School District No. 403

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Material Weakness

To address this issue and strengthen compliance controls, the District has implemented and will continue the following corrective actions: 1. Standardized Time-and-Effort Procedures The District has revised and standardized procedures for collecting, reviewing, and retaining time-and-effort document...

To address this issue and strengthen compliance controls, the District has implemented and will continue the following corrective actions: 1. Standardized Time-and-Effort Procedures The District has revised and standardized procedures for collecting, reviewing, and retaining time-and-effort documentation for all federally funded employees and substitutes charged to Title I and other federal programs. 2. Training and Guidance District staff responsible for payroll processing, federal program oversight, and school-level administration will receive annual training regarding federal time-andeffort requirements, including requirements for semiannual certifications, personnel activity reports, signature and date requirements, and retention expectations. 3. Centralized Monitoring and Review The District has updated its centralized review process to verify that all required timeand- effort documentation is completed accurately and retained timely before payroll expenditures are finalized and charged to federal programs. This review includes periodic monitoring by Business Services and Program staff. 4. Tracking and Documentation Controls The District is updating its tracking mechanisms, including standardized forms, submission deadlines, and periodic compliance checklists, to ensure required certifications are collected and retained for all applicable employees each reporting period. 5. Ongoing Compliance Monitoring District management will conduct periodic internal reviews of federally funded payroll documentation throughout the fiscal year to ensure continued compliance and to promptly address any deficiencies identified. The District expects these corrective actions to strengthen internal controls and ensure ongoing compliance with federal and OSPI requirements for time-and-effort documentation.

View Audit 402334

Finding 1215677 (2025-001)

Material Weakness 2025

Legal Aid of Western Ohio, INC

OH

Procurement, Suspension & Debarment

Legal Services Corporation Grant – Assistance Listing No. 09.436183 Recommendation: We recommend that the Organization update its procurement and vendor approval procedures to require documented suspension and debarment verification prior to entering into covered transactions, in accordance with 2 C...

Legal Services Corporation Grant – Assistance Listing No. 09.436183 Recommendation: We recommend that the Organization update its procurement and vendor approval procedures to require documented suspension and debarment verification prior to entering into covered transactions, in accordance with 2 CFR §§ 180.300 and 180.320. Documentation of the verification should be retained in the procurement or contract file to demonstrate compliance. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management agrees with the finding. During 2025, periodic suspension and debarment reviews were performed; however, the process did not require verification prior to entering into covered transactions. Management will revise its procurement policies and procedures to require suspension and debarment verification before execution of covered contracts, including contracts funded with LSC or other federal funds that are expected to equal or exceed $25,000, contracts requiring LSC or federal approval, and other covered transactions. Documentation of the verification will be retained with the procurement file and must be dated prior to contract execution. Corrective Action: Effective immediately, LAWO will require a SAM.gov Exclusions search, vendor certification, or suspension/debarment clause before entering into covered transactions. The preferred method will be a SAM.gov Exclusions search. Procurement policies and procedures will be updated to include this required step. The staff member responsible will retain the dated verification in the procurement file. Name(s) of the contact person(s) responsible for implementing corrective action: Scot Henshaw, Manager of Business Operations Planned completion date for corrective action plan: July 1, 2026

View Audit 402332

Finding 1215673 (2025-005)

Material Weakness 2025

Oakland County, Michigan

MI

Questioned Costs HUD Housing Programs Material Weakness § 200.307

Reporting of Prior Year Program Income Auditor Description of Criteria, Condition, and Effect: In accordance with 2 CFR § 200.307, program income must be used in accordance with the terms and conditions of the federal award and must be accounted for and reported accurately. Recipients are required t...

Reporting of Prior Year Program Income Auditor Description of Criteria, Condition, and Effect: In accordance with 2 CFR § 200.307, program income must be used in accordance with the terms and conditions of the federal award and must be accounted for and reported accurately. Recipients are required to reconcile program income received and expended during the grant period to ensure it is used for allowable purposes and properly reflected in financial reports. Failure to reconcile and report program income may result in noncompliance with federal grant regulations and could impact the allowability of costs charged to the award. The County recognized a substantial amount of program income during the fiscal year ended September 30, 2025, for program income that was received in prior periods but incorrectly reported as unearned over many years. It is unclear what portion of this prior year unearned revenue was reported to the Department of Housing and Urban Development ("HUD") through the Integrated Disbursement and Information System ("IDIS") now that the revenue has been properly recognized in the general ledger. The County has a risk of inaccurately reporting program income to HUD. The County is also exposed to an increased risk noncompliance could occur and not be prevented or detected by the County's internal controls. Auditor Recommendation: We recommend the County review its prior year records to determine which portion of the currently recognized revenue has already been reported to HUD. Additionally, the County's Neighborhood and Housing Development ("NHD") department should coordinate with HUD to establish the appropriate approach for reporting and expending this program income going forward. Corrective Action: An in-depth review of all program income activity dating back to 1995 is currently underway within both the general ledger and the IDIS system. The purpose of this review is to determine the total amount of program income received and reported to HUD. Upon completion of the review, the County will collaborate with HUD to determine the appropriate use and expenditure of the identified funds in accordance with applicable program requirements. Responsible Persons: Khadija Walker-Fobbs Neighborhood and Housing Development Officer, Curtis Smith, Chief, Neighborhood and Housing Development and Brian J. Lefler, Chief Financial Officer Anticipated Completion Date: September 2026

View Audit 402331

Finding 1215654 (2025-004)

Material Weakness 2025

Oakland County, Michigan

MI

Reporting Questioned Costs Material Weakness

Inaccurate Reporting/Lack of Independent Review and Approval of Reporting (Repeat) Auditor Description of Criteria, Condition, and Effect: Recipients of federal awards are required to report periodically on financial information, as specified by the grant agreement. Reported information should be su...

Inaccurate Reporting/Lack of Independent Review and Approval of Reporting (Repeat) Auditor Description of Criteria, Condition, and Effect: Recipients of federal awards are required to report periodically on financial information, as specified by the grant agreement. Reported information should be supported by the entity’s accounting records and subjected to an independent review and approval prior to submission in order to detect and correct any errors or omissions. Additionally, the PR-26 financial summary reports are submitted as part of the Consolidated Annual Performance Evaluation Report (CAPER) and should be properly reconciled to present all inflows and outflows of resources related to the program including the appropriate unexpended balance. During our audit procedures over the County's CDBG reporting, we noted that none of the reports were subject to an independent review and approval prior to submission in order to detect and correct potential errors or omissions until partway through the year under audit. We also noted that the PR-26 was submitted as required, but contained financial data that did not agree to the County's underlying accounting records. Expenditures were properly reported for the year under audit, but it was identified that the County had incorrectly reported its unexpended balance going back to 2020, when the unexpended balance was not properly carried over from the 2019 report to the 2020 report. This resulted in an incorrect unexpended balance which presented as a net negative unexpended balance in the current year report. The County submitted inaccurate reporting in its PR-26 that was inconsistent with other financial reports submitted and with the County's general ledger. The County is also exposed to an increased risk that future noncompliance could occur and not be prevented or detected by the County's internal controls until controls are consistently implemented across fiscal years. Auditor Recommendation: We recommend that the County implement necessary internal controls to ensure that proper review and approval is documented and reports agree to accounting records. Financial information being submitted to outside entities should be reviewed and approved by the Financial Services department to ensure that it is in agreement with the County's general ledger and consistent with other required financial reporting. Corrective Action: Management acknowledges that financial reporting requires enhanced controls and reconciliation procedures. A review of detailed reconciliation steps will be conducted to identify areas within current processes where regular reviews can be implemented to ensure accuracy and completeness. The County plans to implement this process by July FY2026, which will provide two full quarters of reviewed and monitored activity prior to year-end reporting. Responsible Persons: Khadija Walker-Fobbs Neighborhood and Housing Development Officer, Curtis Smith, Chief, Neighborhood and Housing Development and Brian J. Lefler, Chief Financial Officer Anticipated Completion Date: September 2026

View Audit 402331

Finding 1215635 (2025-003)

Material Weakness 2025

The Montrose Center

TX

Reporting

Finding #2025-003 – Reporting – Significant Deficiency and Other Noncompliance. Applicable federal programs: All programs. Condition and context: The SEFA originally provided by the Montrose Center did not reconcile to the underlying accounting records. Additionally, some funding was incorrectly rep...

Finding #2025-003 – Reporting – Significant Deficiency and Other Noncompliance. Applicable federal programs: All programs. Condition and context: The SEFA originally provided by the Montrose Center did not reconcile to the underlying accounting records. Additionally, some funding was incorrectly reported as state funding instead of federal. the Montrose Center failed to have procedures in place to identify and reflect all federal grants on the SEFA, have timely procedures to reconcile the federal expenditures to the federal program revenue or have timely review. Recommendation: Develop policies and procedures to identify and reflect all federal programs on the SEFA, reconcile the federal expenditures to the federal program revenue on a routine basis, and formalize the independent review process for the SEFA and grant billings. Planned corrective action: Management will develop written procedures to identify all federal awards, including federal funding received indirectly through state and other pass-through entities, by confirming the funding source tagging each award in the CYMA general ledger with a federal/state/local indicator. Federal expenditures will be reconciled to federal program revenue and grant billings on a routine basis, and the draft SEFA, supporting reconciliations, and grant billings will be subject to documented independent review by the Controller. Responsible officer: Michael McIntyre, Chief Administrative Officer. Estimated completion date: August 31, 2026.

View Audit 402329

Finding 1215621 (2025-004)

Material Weakness 2025

The Montrose Center

TX

Reporting Allowable Costs / Cost Principles HUD Housing Programs

Finding #2025-004 – Reporting – Significant Deficiency and Other Noncompliance. Applicable federal programs: U.S. Department of Health and Human Services, Assistance Listing #93.959, Block Grants for Prevention and Treatment of Substance Abuse, Recovery Support Services, Contract Number: HHS00013050...

Finding #2025-004 – Reporting – Significant Deficiency and Other Noncompliance. Applicable federal programs: U.S. Department of Health and Human Services, Assistance Listing #93.959, Block Grants for Prevention and Treatment of Substance Abuse, Recovery Support Services, Contract Number: HHS000130500013, Contract Year: 09/01/24-08/31/25; Prevention and Behavioral Health Promotion Youth Prevention Services, Contract Number: HHS001344700032, Contract Year: 09/01/24-08/31/25. Condition and context: During our testing of the Federal Financial Reports, we noted that the final financial status reports were submitted late and the reports did not have evidence of review and approval. Additionally, a recoupment of $33,541 was required by the funder upon review of the closeout report for contract number HHS000130500013. Recommendation: Re-emphasize policies and procedures to meet the grant reporting requirements and ensure that all reports are independently reviewed prior to submission. Planned corrective action: Management will maintain a grant reporting deliverables calendar covering all federal and state reporting requirements, with internal due dates set in advance of funder deadlines and assigned to a specific grant manager. No Federal Financial Report or closeout report will be submitted without documented independent review and approval by the Controller, with preparer, reviewer, and approver sign-off retained in the grant file alongside the supporting reconciliation to the CYMA general ledger. Responsible officer: Michael McIntyre, Chief Administrative Officer. Estimated completion date: August 31, 2026.

View Audit 402329

Finding 1215597 (2025-001)

Material Weakness 2025

Greater Boston Chinese Golden Age Center, Inc.

MA

Significant Deficiency

The Organization will plan to begin its audit for the year ended June 30, 2026 earlier than the prior year, allowing sufficient time to file the Organization's Data Collection Form before its due date.

View Audit 402305

Corrective Action Plans

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