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Finding 1213977 (2025-001)
Material Weakness 2025
Iff
IL
Corrective Action Plan for the year ended December 31, 2025 IFFs most recent A-133 Audit Report identi�ied a Material Weakness regarding the validation of lack of suspension or debarment for vendors used for the below mentioned grant. Material Weakness Identi�ied in A-133 Audit CFDA No: 14.251 Feder...
Corrective Action Plan for the year ended December 31, 2025 IFFs most recent A-133 Audit Report identi�ied a Material Weakness regarding the validation of lack of suspension or debarment for vendors used for the below mentioned grant. Material Weakness Identi�ied in A-133 Audit CFDA No: 14.251 Federal Awarding Agency & Program: U.S. Department of Housing and Urban Development - Economic Development Initiative, Community Project Funding, and Miscellaneous. Finding 2025-001: Suspension and Debarment Criteria: Uniform Grant Guidance (2 CFR 180) requires nonfederal entities receiving Federal awards to establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure suspension and debarment procedures are properly followed and documented, with supporting information maintained, as required by 2 CFR 180. Condition: Out of 4 vendors tested, we noted 4 (100%) vendors from which IFF procured furniture, equipment and appliances without verifying the vendors’ status for suspension and debarment. Based on discussion with management, IFF did not have a process to ensure required suspension and debarment procedures were performed. Cause: Management did not suf�iciently identify grant requirements which resulted in nonperformance of required procedures over suspension and debarment. Uniform Grant Guidance 2 CDR 180: § 180.220 Are any procurement contracts included as covered transactions? (a) Covered transactions under this part: (1) Do not include any procurement contracts awarded directly by a federal agency; but (2) Do include some procurement contracts awarded under nonprocurement covered transactions. (b) Speci�ically, a contract for goods or services is a covered transaction if any of the following applies: (1) The contract is awarded by a participant in a nonprocurement transaction covered under § 180.210, and the contract amount is expected to equal or exceed $25,000. (2) The contract requires the consent of an of�icial of a federal agency. In that case, the contract is always a covered transaction regardless of the amount or who awarded it. For example, it could be a subcontract awarded by a contractor at a tier below a nonprocurement transaction, as shown in the Appendix to this part. (3) The contract is for Federally required audit services. (c) A subcontract also is a covered transaction if: (1) It is awarded by a participant in a procurement transaction under a nonprocurement transaction of a Federal agency that extends the coverage of paragraph (b)(1) of this section to additional tiers of contracts (see the diagram in the Appendix to this part showing that optional lower tier coverage); and (2) The value of the subcontract is expected to equal or exceed $25,000. § 180.225 How do I know if a transaction in which I may participate is a covered transaction? As a participant in a transaction, you will know that it is a covered transaction because of the Federal agency regulations governing the transaction. The appropriate Federal agency of�icial or participant at the next higher tier who enters into the transaction with you will tell you that you must comply with applicable portions of this part. Subpart C—Responsibilities of Participants Regarding Transactions Doing Business With Other Persons § 180.300 What must I do before I enter into a covered transaction with another person at the next lower tier? When you enter a covered transaction with another person at the next lower tier, you must verify that the person with whom you intend to do business is not excluded or disquali�ied. You do this by: (a) Checking SAM.gov Exclusions; or (b) Collecting a certi�ication from that person; or (c) Adding a clause or condition to the covered transaction with that person. IFF Management Response: IFF did not have a process in place requiring veri�ication of any vendor Suspensions or Debarment where we utilized Federal Grant dollars. The majority of purchases for this project were under $25,000, although cumulative expenditures could very well have exceeded this amount. Corrective Action Taken: Once management become aware of the noncompliance condition, the Community Development Solutions team led by our Vice President of Community Development Solutions, Eden Hurd-Smith, made sure to check each vendor in SAM.gov and con�irmed that each vendors’ status was in fact not suspended or debarred from receiving federal grant proceeds. Corrective Action Planned: Through the work of our President and Core Operating Of�icer, Tara Townsend, we are already in process of implementing processes that address this gap in our current Business Enterprise Mapping processes. There are two places we are making changes: 1. In our Contract/Grant Management processes, we will identify and document all requirements tied to any funding source and contract in our Contract Tracker. In onboarding that contract, we will make sure our systems are set up to ensure that we comply with those requirements which will be con�irmed in the tracker. 2. In our Contracted Services/Vendor Management processes, we will use the requirements outlined in the Contract Tracker to de�ine the requirements for vendor procurement. In cases like this one, that would include checking the vendor’s status in SAM. Those �indings will be documented in our Vendor Management System, along with other vendor characteristics. We will also be doing routine updates and checks to ensure the ongoing accuracy of the information about vendors once they are in our Vendor Management database. Management intends to ensure that our vendor contracts would incorporate attestations re�lecting any of the requirements for vendors identi�ied through the Contracts/Grants Management processes. Responsible Individuals: Tara Townsend, President and Core Operating Of�icer, and Eden HurdSmith, Vice President of Community Development Solutions. Anticipated Completion Date: Late 2nd Quarter/Early 3rd Quarter 2026
BA will create a spreadsheet in addition to the reports in systems 3000 to maintain a cafeteria balance that does not exceed (3) months average expenditures.
BA will create a spreadsheet in addition to the reports in systems 3000 to maintain a cafeteria balance that does not exceed (3) months average expenditures.
Audit Finding – Management’s View and Corrective Action Plan Student Financial Assistance Cluster – Various ALNs Reference Number 2025-001 – Special Test – National Student Loan Data System (NSLDS) Reporting Management agrees with the finding. The University’s Enrollment Services teams are thoroughl...
Audit Finding – Management’s View and Corrective Action Plan Student Financial Assistance Cluster – Various ALNs Reference Number 2025-001 – Special Test – National Student Loan Data System (NSLDS) Reporting Management agrees with the finding. The University’s Enrollment Services teams are thoroughly reviewing the National Student Loan Data System (NSLDS) and National Student Clearinghouse (NSC) reporting requirements and updating the data extract code (Code). The updated Code will be validated with the NSC’s test submission process. Beginning with Spring Term 2026 (April), a modified version of the current Code that addresses the known issues will be used for reporting. The thorough review and Code rewrite will be completed and tested for use with the first reporting for Fall Semester 2026 (September). The University Registrar’s Office will also implement a process to regularly monitor reporting changes issued by the NSLDS and NSC. Responsible party – Kirsten Jensen, Associate Registrar
Actionable plan: The Organization will establish and implement formal policies and procedures requiring staff to research, verify, and document the suspension and debarment status of all vendors for covered transactions. This verification will take place prior to entering into any contracts with ven...
Actionable plan: The Organization will establish and implement formal policies and procedures requiring staff to research, verify, and document the suspension and debarment status of all vendors for covered transactions. This verification will take place prior to entering into any contracts with vendors, ensuring compliance with 2 CFR 200.214. Responsible individual: Madeline Henriquez, Executive Director Anticipated completion date: Immediately, April 1, 2026
Actionable plan: The Organization adopted a written, standalone procurement policy to govern transactions under Federal awards. This policy will be designed to strictly comply with the procurement requirements outlined in the Code of Federal Regulations, specifically 2 CFR 200.318. Responsible indiv...
Actionable plan: The Organization adopted a written, standalone procurement policy to govern transactions under Federal awards. This policy will be designed to strictly comply with the procurement requirements outlined in the Code of Federal Regulations, specifically 2 CFR 200.318. Responsible individual: Madeline Henriquez, Executive Director, and the Board of Directors Completion date: February 17, 2026
Although its already January 28, 2026, and full implementation may not cover the entire fiscal year ending May 31, 2026, the Center will implement mitigating strategies immediately by aligning drawdowns with near-term disbursement needs, enhancing cash forecasting, and using alternative resources to...
Although its already January 28, 2026, and full implementation may not cover the entire fiscal year ending May 31, 2026, the Center will implement mitigating strategies immediately by aligning drawdowns with near-term disbursement needs, enhancing cash forecasting, and using alternative resources to cover payroll/operating costs while awaiting reimbursements. Management will document and review drawdown support to promote ongoing compliance
United Methodist Community House agrees with the finding identified and respectfully submits the following Corrective Action Plan for the year ending December 31, 2025. United Methodist Community House did not document the part of the policy that is needed to show that the vendor was not suspended o...
United Methodist Community House agrees with the finding identified and respectfully submits the following Corrective Action Plan for the year ending December 31, 2025. United Methodist Community House did not document the part of the policy that is needed to show that the vendor was not suspended or debarred from the Federal Government through SAM.gov before the contract was entered into. United Methodist Community House has discussed the procedure of policy and has identified that the review and documentation on the selected vendor needs to happen prior to approval of the contract by Board of Directors. It will be the responsibility of the Finance Manager and the Chief Executive Officer to adhere to the policy to document the review of the vendor through SAM.gov. If there are any questions about the plan, please contact the Breanna Cook at 616-452-3226 ext 3026 or bcook@umchousegr.org.
2025-002 Staffing for Adequate Fire and Emergency Response (SAFER) – CFDA No. 97.083 Recommendation: The City should provide training for the grant administrator and/or include an additional review by individual that has been fully trained on the compliance requirements of the grant. The internal co...
2025-002 Staffing for Adequate Fire and Emergency Response (SAFER) – CFDA No. 97.083 Recommendation: The City should provide training for the grant administrator and/or include an additional review by individual that has been fully trained on the compliance requirements of the grant. The internal control process should include a formal way to document the review and approval of Fire Safety salary costs charged to the grant to provide evidence that internal controls are effectively designed and implemented and functioning in a timely manner throughout the year. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned and taken in response to finding: The City has authorized a full-time grants specialist position within the Finance Department to oversee the administration of grants separate from the programming department. The City will strengthen internal controls over grant compliance by implementing formal policies and procedures for allowable costs, documentation, and review. All grant expenditures will be reviewed and approved by Finance prior to submission, with supporting documentation maintained for eligibility determinations. Name(s) of the contact person(s) responsible for corrective action: Rebeca Holden Planned completion date for corrective action plan: 06/30/26 If the Tennessee Comptroller of the Treasury has questions regarding this plan, please call Rebecca Holden at 931-451-0782
CORRECTIVE ACTION PLAN FOR AUDIT FINDING 2025-001 The Organization agrees with the finding. The Organization has agreed to start performing physical inspections again, as required by HUD. Contact: Kalisha France, Regional Property Manager Completion Date: March 5, 2026
CORRECTIVE ACTION PLAN FOR AUDIT FINDING 2025-001 The Organization agrees with the finding. The Organization has agreed to start performing physical inspections again, as required by HUD. Contact: Kalisha France, Regional Property Manager Completion Date: March 5, 2026
Planned Corrective Action Plan: The District will ensure all supporting documentation is prepared and ready for Auditors. In addition, audit services will be procured with sufficient time to submit the single audit by the required timeline. Anticipated Completion Date: June 30, 2026 Responsible Cont...
Planned Corrective Action Plan: The District will ensure all supporting documentation is prepared and ready for Auditors. In addition, audit services will be procured with sufficient time to submit the single audit by the required timeline. Anticipated Completion Date: June 30, 2026 Responsible Contact Person: Lorna Villaruel, Business Manager
Finding 2025-001: Significant Deficiency in Internal Control over Activities Allowed or Unallowed and Allowable Costs/Cost Principles Corrective Actions Taken and Planned: Washington Alliance for Better Schools is reimbursing the passthrough agency for the identified questioned costs, at their direc...
Finding 2025-001: Significant Deficiency in Internal Control over Activities Allowed or Unallowed and Allowable Costs/Cost Principles Corrective Actions Taken and Planned: Washington Alliance for Better Schools is reimbursing the passthrough agency for the identified questioned costs, at their direction, and has adjusted the financial statements and schedule of expenditures of federal awards as of and for the year ended August 31, 2025, accordingly. In addition, to prevent future errors, as part of the grant invoicing process, management will implement a formal reconciliation of amounts billed to federal programs to supporting documents for reimbursable costs incurred. Anticipated Completion Date: August 31, 2026 Contact Person: Emily Yim President and CEO 206-393-4918 emilyy@wabsalliance.org
Finding 1213949 (2025-011)
Material Weakness 2025
Creek County will work with all offices making sure that a proper invoice is attached on all purchase orders. Educating Offices that there is a difference in a quote verses an invoice. The County Clerk will make sure that there are multiple eyes on the purchase orders to ensure that this is caught b...
Creek County will work with all offices making sure that a proper invoice is attached on all purchase orders. Educating Offices that there is a difference in a quote verses an invoice. The County Clerk will make sure that there are multiple eyes on the purchase orders to ensure that this is caught before payment is issued.
Finding 1213948 (2025-010)
Material Weakness 2025
The Creek County Clerk’s Office will work with the SEFA preparer to ensure that the correct paid dates are being used when reporting. This should eliminate the actual expenditures differences. We will work to educate all offices involved in the reporting process on financial statement and SEFA.
The Creek County Clerk’s Office will work with the SEFA preparer to ensure that the correct paid dates are being used when reporting. This should eliminate the actual expenditures differences. We will work to educate all offices involved in the reporting process on financial statement and SEFA.
Finding 1213947 (2025-009)
Material Weakness 2025
It has been brought to our attention that we need an additional policy that covers conflict of interests and govern the performance of its employees engaged in the selection, award, and administration of contracts. We have taken this recommendation and are implementing the proper language, for all e...
It has been brought to our attention that we need an additional policy that covers conflict of interests and govern the performance of its employees engaged in the selection, award, and administration of contracts. We have taken this recommendation and are implementing the proper language, for all employees to acknowledge in our County Handbook. We will strengthen this control and add this be updated yearly, so that all conflict can be disclosed. Creek County prides itself in moving toward complete transparency and holding each employee accountable to disclose all information needed to make a proper selection of purchases. Creek County Clerk’s Office will work with the District Attorney’s Office for proper language.
Condition: The Organization obtained a short term line of credit without formal approval from HUD from Park National Bank in 2024 with access to credit up to $15 million, which exceeds the limits in section 20b(iii) of the HUD agreement. Planned Corrective Action: On February 21, 2024, Change Health...
Condition: The Organization obtained a short term line of credit without formal approval from HUD from Park National Bank in 2024 with access to credit up to $15 million, which exceeds the limits in section 20b(iii) of the HUD agreement. Planned Corrective Action: On February 21, 2024, Change Healthcare / Optum sustained a cyber-attack and completely shut down claim’s submission processes for Knox Community Hospital. With over 3 weeks of not releasing insurance claims that amounted to over $40M, this impacted the cashflow greatly on the organization. The CFO at that time made the decision to seek a Line of Credit with Park National Bank for $15M to fund operations. Due to the urgency and short timeline, formal approval was not obtained from HUD. A detailed event log was maintained around the cyber-attack and provided to our Board and HUD representative. In the future, all regulatory agreements’ requirements will be reviewed by the CFO and in time there are new agreements or modifications made to existing agreements to ensure compliance with each agreement. HUD has since issued a letter approving KCH’s $15M Line of Credit. Contact person responsible for corrective action: Danielle O’Brien, CFO Anticipated Completion Date: 4/30/2026
FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT Department of Housing and Urban Development Finding 2025-003: Major Program: Supportive Housing for the Elderly (Section 202 Capital Advance - Accumulated Balance), Federal Assistance Listing Number 14.157 RECOMMENDATION The auditor recommends ensuring al...
FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT Department of Housing and Urban Development Finding 2025-003: Major Program: Supportive Housing for the Elderly (Section 202 Capital Advance - Accumulated Balance), Federal Assistance Listing Number 14.157 RECOMMENDATION The auditor recommends ensuring all tenant’s assets are verified at the time of recertification and documentation is maintained in the tenants’ file. Also, the tenant file related to the finding is recertified to determine if the proper tenant rent and HUD assistance payment were accurately calculated for the year ended December 31, 2025. ACTION TAKEN The Project will be continuing to train staff on the HUD Handbook requirements for the tenant files.
FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT (CONTINUED) Department of Housing and Urban Development Finding 2025-002: Major Program: Supportive Housing for the Elderly (Section 202 Capital Advance - Accumulated Balance), Federal Assistance Listing Number 14.157 RECOMMENDATION The auditor recommends...
FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT (CONTINUED) Department of Housing and Urban Development Finding 2025-002: Major Program: Supportive Housing for the Elderly (Section 202 Capital Advance - Accumulated Balance), Federal Assistance Listing Number 14.157 RECOMMENDATION The auditor recommends ensuring all tenants’ paperwork is thoroughly reviewed and accurately used in the calculation of the tenant’s required monthly rent and HUD’s tenant assistance payments. ACTION TAKEN The Project billed HUD for the $540 of tenant assistance and will be reimbursing the tenant for the additional rent of $540. The Project will be billing the tenant for the $99 and reimbursing HUD for the additional tenant assistance of $99.
FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT Department of Housing and Urban Development Finding 2025-001: Major Program: Supportive Housing for the Elderly (Section 202 Capital Advance - Accumulated Balance), Federal Assistance Listing Number 14.157 RECOMMENDATION The auditor recommends ensuring al...
FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT Department of Housing and Urban Development Finding 2025-001: Major Program: Supportive Housing for the Elderly (Section 202 Capital Advance - Accumulated Balance), Federal Assistance Listing Number 14.157 RECOMMENDATION The auditor recommends ensuring all current staff are trained on HUD Handbook requirements for tenant files, including the EIV Existing Tenant Search report. ACTION TAKEN The Project will be continuing to train staff on the HUD Handbook requirements for tenant files.
FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT Department of Housing and Urban Development Finding 2025-003: Major Program: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155 RECOMMENDATION The auditor recommends ensuri...
FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT Department of Housing and Urban Development Finding 2025-003: Major Program: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155 RECOMMENDATION The auditor recommends ensuring all disbursements are thoroughly reviewed prior to authorizing the expense to be paid. ACTION TAKEN The Project will be reimbursed by the other project for the expense paid on its behalf.
FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT (CONTINUED) Department of Housing and Urban Development Finding 2025-002: Major Program: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155 RECOMMENDATION The auditor recom...
FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT (CONTINUED) Department of Housing and Urban Development Finding 2025-002: Major Program: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155 RECOMMENDATION The auditor recommends ensuring all tenant’s paperwork is thoroughly reviewed and accurately used in the calculation of the tenant’s required monthly rent and HUD’s tenant assistance payments. ACTION TAKEN The Project will be billing the tenant for the $312 and reimbursing HUD for the additional tenant assistance payments of $312 due to the Project.
FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT Department of Housing and Urban Development Finding 2025-001: Major Program: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155 RECOMMENDATION The auditor recommends implem...
FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT Department of Housing and Urban Development Finding 2025-001: Major Program: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155 RECOMMENDATION The auditor recommends implementing greater oversight over HUD tenant compliance and proper employee training on HUD move out procedures. ACTION TAKEN The Project will monitor tenant move outs to ensure security deposits are refunded within the thirty-day period specified by HUD and review the HUD move out procedures with their employees.
We will regularly perform surplus calculation and comply with the required funding of the residual receipts account and will fund the shortfall immediately.
We will regularly perform surplus calculation and comply with the required funding of the residual receipts account and will fund the shortfall immediately.
Finding Approval signatures, vendor certification signatures, and receiving signatures for goods and services were not obtained for all applicable payments. Recommendation Approval signatures, vendor certification signatures, and receiving signatures for goods and servicesare to be evident on all ap...
Finding Approval signatures, vendor certification signatures, and receiving signatures for goods and services were not obtained for all applicable payments. Recommendation Approval signatures, vendor certification signatures, and receiving signatures for goods and servicesare to be evident on all applicable payment forms. Method of Implementation All required signatures will be obtained prior to payment to vendors. Person Responsible for Implementation/Title Interim Business Administrator and Bookkeeper/Accounts Payable Implementation Date: 6/30/2026
Identifying Number: 2025-003 - Noncompliance with Special Tests and Provisions compliance requirements Audit Finding: The Organization is not following GAAP accounting requirements for credit loss provisions. Corrective Action Planned: Management of the Organization has elected not to adopt GAAP acc...
Identifying Number: 2025-003 - Noncompliance with Special Tests and Provisions compliance requirements Audit Finding: The Organization is not following GAAP accounting requirements for credit loss provisions. Corrective Action Planned: Management of the Organization has elected not to adopt GAAP accounting requirements for allowance for credit loss provisions. The name of the contact person responsible for the corrective action: Lisa Underwood, Executive Director The anticipated completion date: N/A.
Identifying Number: 2025-002 - Internal Controls surrounding Special Tests and Provisions compliance requirement Audit Finding: Management of the Organization has not implemented internal controls surrounding the Organization’s compliance with special tests and provisions requirements. Corrective Ac...
Identifying Number: 2025-002 - Internal Controls surrounding Special Tests and Provisions compliance requirement Audit Finding: Management of the Organization has not implemented internal controls surrounding the Organization’s compliance with special tests and provisions requirements. Corrective Action Planned: Management of the Organization has elected not to adopt GAAP accounting requirements for credit loss provisions. The name of the contact person responsible for the corrective action: Lisa Underwood, Executive Director The anticipated completion date: N/A.
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