Corrective Action Plans

Finding 567134 (2024-002)

Significant Deficiency 2024

Src, Inc.

NY

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

A review of SRC's policies and procedures will be completed and if necessary, will be updated to put additional controls in place to ensure appropriate personnel are reviewing and approving submitted employee work arrangements. Training will be provided, as applicable, for any changes that may be ma...

A review of SRC's policies and procedures will be completed and if necessary, will be updated to put additional controls in place to ensure appropriate personnel are reviewing and approving submitted employee work arrangements. Training will be provided, as applicable, for any changes that may be made. Contact Person Responsible for Corrective Action: Janna Nelson, Director, Human Resources Completion Date: Review of policy and procedures will be completed by September 30, 2025.

View Audit 360024

Finding 567133 (2024-001)

Significant Deficiency 2024

Src, Inc.

NY

Allowable Costs / Cost Principles

SRC is in the fifth year of an anticipated five-year period to verify the existence of tangible assets. This review includes validation of the status of active tangible assets as well as those withdrawn from active use to identify differences between physical life and depreciable life. Once this is...

SRC is in the fifth year of an anticipated five-year period to verify the existence of tangible assets. This review includes validation of the status of active tangible assets as well as those withdrawn from active use to identify differences between physical life and depreciable life. Once this is complete SRC will update our policies and procedures to incorporate the process of periodically analyzing and reviewing our useful life matrix to determine whether useful lives are valid or if adjustments are required. SRC provides additional training to employees responsible for capital. SRC’s policy states that residual value will be recognized consistent with FAR 31.205-11 which states, “for tangible personal property, only estimated residual values that exceed ten percent of the capitalized cost of the asset need be used in establishing depreciable costs”. SRC’s capital asset policy and Disclosure Statement do not set a standard ten percent residual value. SRC demonstrated that there have been no instances of salvage value of any amount recovered at tangible asset disposition. SRC agrees the system defaults to zero percent salvage value but disagrees this is indicative of a deficiency as the system provides for the flexibility to adjust the salvage value to the appropriate amount, as applicable. Remaining outstanding corrective action, which entails reviews of our policies and procedures will take place by September 30, 2026. Contact Person Responsible for Corrective Action: Lisa Kennedy, Director, Corporate Controller Completion Date: All corrective action will be implemented by September 30, 2026.

View Audit 360024

Finding 567128 (2024-001)

Material Weakness 2024

Dowagiac Housing Commission

MI

Questioned Costs Eligibility HUD Housing Programs

Recommendation: The Commission should consider reviewing its current policy regarding rent certifications. The Commission should ensure all persons involved in the certification process are properly trained and understand regulations in order to accurately identify errors. Additionally, the Commiss...

Recommendation: The Commission should consider reviewing its current policy regarding rent certifications. The Commission should ensure all persons involved in the certification process are properly trained and understand regulations in order to accurately identify errors. Additionally, the Commission should implement a thorough second party review of annual certifications to verify accuracy. Action Taken: Management will implement stronger controls over tenant files including a more thorough second party review. Anticipated Completion Date of Action: August 31, 2025.

View Audit 360018 Questioned Costs: $1

Finding 567125 (2024-001)

Significant Deficiency 2024

Great Lakes Community Action Partnership

OH

Subrecipient Monitoring Reporting Significant Deficiency

Identifying Number: 2024-001 – Federal Funding Accountability and Transparency Act Reporting (Significant Deficiency) Finding: Reports in compliance with the Federal Funding Accountability and Transparency Act (FFATA) were not completed in a timely manner. Name of contact person ...

Identifying Number: 2024-001 – Federal Funding Accountability and Transparency Act Reporting (Significant Deficiency) Finding: Reports in compliance with the Federal Funding Accountability and Transparency Act (FFATA) were not completed in a timely manner. Name of contact person and title: David Chimahusky, CFO, GLCAP Anticipated completion date: June 30, 2025 Great Lakes Community Action Partnership’s response: Concur Great Lakes Community Action Partnership agrees with this finding and provides the following response and corrective actions: Corrective Action Taken or Planned: Management has procedures in place to evaluate awards for FFATA reporting applicability and will continue to employ and refine these procedures to ensure reporting is submitted in a timely and complete manner. Record of subaward review and FFATA submission dates will be maintained for regular review. Person(s) Responsible for Implementation: David Chimahusky, CFO

View Audit 360002

Finding 567124 (2024-009)

Significant Deficiency 2024

Cultivate Culinary School and Catering

IN

Subrecipient Monitoring Reporting Significant Deficiency

Finding Reference Number: 2024-009 – COVID-19 - Coronavirus State and Local Recovery Funds. Compliance Requirement: Internal Control noncompliance - Reporting. Name of Contact Person: Jim Conklin. Views of Responsible Officials: Management acknowledges the finding and understands the need to complet...

Finding Reference Number: 2024-009 – COVID-19 - Coronavirus State and Local Recovery Funds. Compliance Requirement: Internal Control noncompliance - Reporting. Name of Contact Person: Jim Conklin. Views of Responsible Officials: Management acknowledges the finding and understands the need to complete and submit timely any required reporting to federal grantors as outlined by the notice of award, federal regulations, and/or grant agreement. Planned Corrective Action: The Organization will provide training to staff involved in grants management about importance of completion and timely submission of required reports. We will review any future federal grant agreements obtained for required reporting and prepare a calendar to track the appropriate due dates. This calendar will be shared with and monitored by a member of management and all required reports will be reviewed to evidence internal control over reports submitted to grantors. Anticipated Completion Date: 6/30/2025.

View Audit 359998

Finding 567123 (2024-008)

Significant Deficiency 2024

Cultivate Culinary School and Catering

IN

Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking § 200.214

Finding Reference Number: 2024-008 – COVID-19 - Coronavirus State and Local Recovery Funds. Compliance Requirement: Internal Control noncompliance - Procurement, Suspension, and Debarment. Name of Contact Person: Jim Conklin. Views of Responsible Officials: Management acknowledges the finding and un...

Finding Reference Number: 2024-008 – COVID-19 - Coronavirus State and Local Recovery Funds. Compliance Requirement: Internal Control noncompliance - Procurement, Suspension, and Debarment. Name of Contact Person: Jim Conklin. Views of Responsible Officials: Management acknowledges the finding and understands the need to perform a review of vendors paid using federal grant funds to determine if they are suspended or debarred. Planned Corrective Action: The Organization will provide training to staff involved in procurement to search the federal government website to determine if vendors selected are suspended or debarred. Documentation of this determination will be retained and reviewed by a member of management to evidence internal control over this procedure. Anticipated Completion Date: 6/30/2025.

View Audit 359998

Finding 567108 (2024-001)

Material Weakness 2024

Arctic Village Tribal Council

AK

Questioned Costs Cash Management Material Weakness § 200.305

Finding 2024-001 Lack of Internal Controls Over Cash Management Name of Contact Person: Galen Gilbert, First Chief Corrective Action Plan: In the prior fiscal year, Arctic Village Council (AVC) experienced delays in drawing down HUD funds due to staff transitions and turnover. While reimbursemen...

Finding 2024-001 Lack of Internal Controls Over Cash Management Name of Contact Person: Galen Gilbert, First Chief Corrective Action Plan: In the prior fiscal year, Arctic Village Council (AVC) experienced delays in drawing down HUD funds due to staff transitions and turnover. While reimbursement was ultimately received, the funds were not deposited until after fiscal year-end, contributing to the reported cash management issue. To strengthen internal controls and avoid future delays, AVC will continue to follow its monthly reconciliation process to ensure that all grant expenditures are accurately aligned with drawdown activity and supported by eligible costs. In addition, AVC will explore establishing a line of credit (LOC) in FY2025 to help bridge timing gaps between expenditures and reimbursement cycles. This LOC would provide short-term liquidity support and help reduce reliance on general fund balances while awaiting federal reimbursements. Proposed Completion Date: September 30, 2025

View Audit 359989 Questioned Costs: $1

Finding 567105 (2024-003)

Significant Deficiency 2024

Pittsfield Charter Township

MI

Procurement, Suspension & Debarment Allowable Costs / Cost Principles

Finding: 2024-003 - Suspension and Debarment – Verification Auditor Description of Condition and Effect: The Township was unable to provide evidence that one of the vendors selected for testing was not suspended, debarred, or otherwise excluded at the time the Township hired the vendor to provide g...

Finding: 2024-003 - Suspension and Debarment – Verification Auditor Description of Condition and Effect: The Township was unable to provide evidence that one of the vendors selected for testing was not suspended, debarred, or otherwise excluded at the time the Township hired the vendor to provide goods or services. While none of the vendors tested appeared to be suspended or debarred, documentation does not exist to support that the Township verified its vendors paid with federal dollars were not suspended or debarred prior to contracting with them. Auditor Recommendation: We recommend that the Township review its written policies and procedures over federal awards to ensure that the appropriate suspension and debarment evidence of verifications are retained for all vendors providing goods or services in excess of $25,000. Corrective Action: We acknowledge the finding of immaterial noncompliance and the identified significant deficiency in our internal controls related to compliance with suspension and debarment requirements. We take this matter seriously and are committed to strengthening our compliance processes. Relevant personnel will undergo updated training on suspension and debarment procedures, including use of the SAM.gov exclusion database. Responsible Person: Tracy Watkins, Finance Director Anticipated Completion Date: December 31, 2025

View Audit 359968

Finding 567104 (2024-002)

Significant Deficiency 2024

Pittsfield Charter Township

MI

Allowable Costs / Cost Principles Subrecipient Monitoring

2024-002 - Lack of Independent Review and Approval of Reporting Auditor Description of Condition and Effect: During our audit procedures over the Township's reporting process, we noted that none of the semi-annual financial reports selected for testing included documentation that they were subjecte...

2024-002 - Lack of Independent Review and Approval of Reporting Auditor Description of Condition and Effect: During our audit procedures over the Township's reporting process, we noted that none of the semi-annual financial reports selected for testing included documentation that they were subjected to an independent review and approval prior to submission in order to detect and correct potential errors or omissions. As a result of this condition, the Township was exposed to an increased risk that the reports filed could contain errors and not be detected and corrected on a timely basis. Auditor Recommendation: We recommend that the Township establish procedures to ensure that all reports are subject to review and approval by an independent employee prior to submission, and that the review and approval is adequately documented. Corrective Action: We acknowledge the finding of significant deficiency in internal controls over compliance. While the matter is not considered to be material to the overall compliance requirements, we recognize the importance of maintaining robust internal controls to ensure full adherence to applicable regulations and policies. The Township is in the process of ensuring relevant personnel are informed and adequately trained on updated compliance processes. We will also increase periodic reviews and monitoring activities to ensure sustained compliance and timely identification of potential issues. Responsible Person: Tracy Watkins, Finance Director Anticipated Completion Date: December 31, 2025

View Audit 359968

Finding 567102 (2024-001)

Significant Deficiency 2024

Association of Universities for Research in Astronomy, INC

DC

Procurement, Suspension & Debarment

NATIONAL SCIENCE FOUNDATION AND DEPARTMENT OF ENERGY 2024-001 Construction of the Vera C. Rubin Observatory under the MREFC – Assistance Listing No. 47.049 Management, Operations and Maintenance of Vera C. Rubin – Assistance Listing No. 47.049 LSST Commissioning Services for SLAC (DOE) – Assistan...

NATIONAL SCIENCE FOUNDATION AND DEPARTMENT OF ENERGY 2024-001 Construction of the Vera C. Rubin Observatory under the MREFC – Assistance Listing No. 47.049 Management, Operations and Maintenance of Vera C. Rubin – Assistance Listing No. 47.049 LSST Commissioning Services for SLAC (DOE) – Assistance Listing No. 81.RD Recommendation: We recommend AURA enhance controls to ensure an adequate process is in place to review potential vendors to determine they are not suspended or debarred and to ensure documentation to support this is maintained. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Corrective Action Plan: The Association of Universities for Research in Astronomy, Inc. (AURA) agrees with the finding. Although no vendors were found to be suspended or debarred, we acknowledge the need to strengthen our internal controls to ensure documentation is consistently maintained to evidence compliance with federal suspension and debarment requirements. AURA has taken the following steps to address this finding: 1. Control Enhancement: AURA Procurement procedures already require that verification of vendor eligibility (via the SAAS E2Open screening portal) be performed and documented prior to the issuance of any purchase order or contract. We implemented enhancements in late FY24 early FY25 to the process and will be updating our procurement manual and Carina record format to reflect this change for FY25. AURA has strengthened screening capture and verification as part of our enhanced Vendor Management process. - For all new vendors, the Procurement team submits the request for a new vendor setup through a JIRA project (which creates a tracking ticket). The record then must have the required information validated – a screening against the debarred/sanctioned/excluded parties lists (SAAS E2Open/Amber Road) as well as vendor-confirmed validation of minimally required information. - For all existing vendors, AURA pulled the full vendor table from Costpoint and screened all vendors effective October 2024. - For all existing vendors, AURA Procurement is reviewing each existing vendor record to validate current information or if not used for 2+ years, inactivating the vendor record. Reactivation will require the new vendor process to affirm all information and process compliance. AURA is working through processes to better document screening to align with the functionality and processes within E2Open’s software. We are currently working to update our Costpoint vendor records to also include the E2Open/Amber Road partner number (the individual tracking number assigned by the screening software to each vendor screened). This process will be on-going, resources permitting. 2. Staff Training: AURA Procurement staff will receive refresher training on federal procurement requirements, including the importance of suspension and debarment reviews and related documentation requirements, as well as a review of the updated processes at AURA. This training will be completed by July 31, 2025. 3. Monitoring and Oversight: Periodic internal reviews will be conducted by the Procurement team to ensure consistent adherence to the updated procedures. Any exceptions will be addressed promptly with corrective measures. Responsible Individual: Ken Kadlec, Director of Contracts and Compliance Expected Completion Date: Other than full existing vendor review (1.3), completion by July 2025.

View Audit 359962

Finding 567101 (2024-004)

Significant Deficiency 2024

Anoka County

MN

Eligibility Significant Deficiency Internal Control / Segregation of Duties § 200.303

Finding Number: 2024-004 Finding Title: Eligibility Program: 93.558 Temporary Assistance for Needy Families Name of Contact Person Responsible for Corrective Action: QC Team (Lead ES): Whitney VonDeLinde, Megan Howard, Melissa Hoeft Kellie Tienter, Public Assistance Manager Jessica Leth, Economic A...

Finding Number: 2024-004 Finding Title: Eligibility Program: 93.558 Temporary Assistance for Needy Families Name of Contact Person Responsible for Corrective Action: QC Team (Lead ES): Whitney VonDeLinde, Megan Howard, Melissa Hoeft Kellie Tienter, Public Assistance Manager Jessica Leth, Economic Assistance Director Corrective Action Planned: • Training TANF employees: o Distribution of Lead ES Newsletter – monthly training communication (includes updates to forms, bulletins from the state, policy & procedural changes, and technical tips) o Supervisor’s will review mandatory verifications at unit meetings by the end of Q3 2025. o Child Support Income Budgeting Guide  Includes how to budget, case noting, etc. o Move In Checklist  We have made clarifying updates to this document regarding requesting a case file from a previous county if not already received. o April 2025 PSU News  QC team shared information and tips from what they noticed while going through the audit • MFIP case reviews conducted by supervisors in Q2 and Q3. 15 per ES per year. • Per Hennepin County we were only transferring the last year of case file documents when clients moved from Anoka County to Hennepin County. Beginning in Q2 of 2025 Anoka County began transferring the entire case file to ensure the complete retention of case files. Anticipated Completion Date: • Completion by end of Q3 2025

View Audit 359961

Finding 567100 (2024-003)

Significant Deficiency 2024

Anoka County

MN

Procurement, Suspension & Debarment § 200.303

Finding Number: 2024-003 Finding Title: Suspension and Debarment Program: 21.027 COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Name of Contact Person Responsible for Corrective Action: Lindsey Felgate - Senior Manager, Procurement Corrective Action Planned: The Procurement Unit will c...

Finding Number: 2024-003 Finding Title: Suspension and Debarment Program: 21.027 COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Name of Contact Person Responsible for Corrective Action: Lindsey Felgate - Senior Manager, Procurement Corrective Action Planned: The Procurement Unit will continue to educate county users on required policy & procedures. This would include a refresh to our new stand-alone procurement policy, a new procedure manual explaining in detail how to procure, and supplemental documents including forms and checklists to aid in compliance. We are upgrading SharePoint (internal website) to aid in sharing procurement information. We will continue to educate on process documentation including the federal guidance listed in Title 2 U.S. Code of Federal Regulations. The County has purchased a finance/procurement system set to go live in 1/2026. The system will manage the purchase order process, and we will continue to find a procurement solution for all other procurement activities. These plans will assist by moving the County from a manual environment to a more structured and standardized environment for procurement activities. Anticipated Completion Date: • Policy – 2025, current summer action • Procedures & Supplemental documents (how to’s, forms, checklists) – initial draft end of 2025 with enhancements in 2026 • SharePoint Site Refresh – year end 2025

View Audit 359961

Finding 567097 (2024-002)

Significant Deficiency 2024

Anoka County

MN

Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking § 200.303

Finding Number: 2024-002 Finding Title: Suspension and Debarment Program: 10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program Name of Contact Person Responsible for Corrective Action: Lindsey Felgate – Senior Manager, Procurement Corrective Action Planned: ...

Finding Number: 2024-002 Finding Title: Suspension and Debarment Program: 10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program Name of Contact Person Responsible for Corrective Action: Lindsey Felgate – Senior Manager, Procurement Corrective Action Planned: The Procurement Unit will continue to educate county users on required policy & procedures. This would include a refresh to our new stand-alone procurement policy, a new procedure manual explaining in detail how to procure, and supplemental documents including forms and checklists to aid in compliance. We are upgrading SharePoint (internal website) to aid in sharing procurement information. We will continue to educate on process documentation including the federal guidance listed in Title 2 U.S. Code of Federal Regulations. The County has purchased a finance/procurement system set to go live in 1/2026. The system will manage the purchase order process and we will continue to find a procurement solution for all other procurement activities. These plans will assist by moving the County from a manual environment to a more structured and standardized environment for procurement activities. Anticipated Completion Date: • Policy – 2025, current summer action • Procedures & Supplemental documents (how to’s, forms, checklists) – initial draft end of 2025 with enhancements in 2026 • SharePoint Site Refresh – year end 2025

View Audit 359961

Finding 567094 (2024-002)

Significant Deficiency 2024

Yankton Transit, Inc.

SD

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Significant Deficiency § 200.313

Yankton Transit will become familiar with the requirements of CFR, §200.313(a) and will establish internal control policies and procedures and will train staff on those policies and procedures. Currently, we have changed the debit cards to credit cards for proper approval and complete support for t...

Yankton Transit will become familiar with the requirements of CFR, §200.313(a) and will establish internal control policies and procedures and will train staff on those policies and procedures. Currently, we have changed the debit cards to credit cards for proper approval and complete support for the transactions that occur monthly.

View Audit 359960

Finding 567068 (2024-003)

Material Weakness 2024

Friendship Community Care, Inc.

AR

The Organization will submit the current audit to the FAC as soon as available, and the Organization will work diligently to meet all future audit filing deadlines.

View Audit 359955

Finding 567066 (2024-002)

Material Weakness 2024

Friendship Community Care, Inc.

AR

HUD Housing Programs

Management concurs with the auditor’s findings and recommendations. The Management Agent has been in the process of working with the bank to move these funds into interest-bearing accounts for the past two years, however based on interest rates during this time the bank fees would have exceeded the ...

Management concurs with the auditor’s findings and recommendations. The Management Agent has been in the process of working with the bank to move these funds into interest-bearing accounts for the past two years, however based on interest rates during this time the bank fees would have exceeded the interest earned on these accounts and it was not prudent of the project to move the accounts. The Management Agent will continue to monitor the accounts going forward and will move the accounts into interest-bearing accounts when it makes financial sense to do so.

View Audit 359955

Finding 567058 (2024-001)

Material Weakness 2024

Friendship Community Care, Inc.

AR

HUD Housing Programs Cash Management

Management concurs with the auditor’s findings and recommendations. Based on communications between the Management Agent and the HUD account executive, the Management Agent believes that HUD intends for these funds to be spent on the Project in future years and does not believe that remittance of th...

Management concurs with the auditor’s findings and recommendations. Based on communications between the Management Agent and the HUD account executive, the Management Agent believes that HUD intends for these funds to be spent on the Project in future years and does not believe that remittance of these funds is required at this time.

View Audit 359955

Finding 567057 (2024-010)

Material Weakness 2024

Daniels County

MT

Procurement, Suspension & Debarment Subrecipient Monitoring Eligibility

NONCOMPLIANCE WITH GRANT TERMS AND CONDITIONS, AIRPORT IMPROVEMENT PROGRAM, CFDA NO. 20.106, CONTRACT NO. AIP-3-30-0068-014-2022 Name of contact person: Board of County Commissioners Corrective Action: The Board will take a more active role in insuring that all grant terms and conditions are being...

NONCOMPLIANCE WITH GRANT TERMS AND CONDITIONS, AIRPORT IMPROVEMENT PROGRAM, CFDA NO. 20.106, CONTRACT NO. AIP-3-30-0068-014-2022 Name of contact person: Board of County Commissioners Corrective Action: The Board will take a more active role in insuring that all grant terms and conditions are being adhered to. Proposed Completion Date: Immediately.

View Audit 359951

Finding 567056 (2024-001)

Significant Deficiency 2024

Family Building Blocks

OR

Reporting § 200.328

Management acknowledges the lapse in consistently meeting the grant requirement to submit financial reports within the specified 30-day period. To address this issue, the Organization has initiated a series of procedural improvements to ensure timely and accurate reporting moving forward. As a first...

Management acknowledges the lapse in consistently meeting the grant requirement to submit financial reports within the specified 30-day period. To address this issue, the Organization has initiated a series of procedural improvements to ensure timely and accurate reporting moving forward. As a first step, the Organization has taken the crucial step of meeting with the grant manager to establish clear communication and alignment on reporting expectations. This direct dialogue has helped clarify requirements, strengthen mutual understanding, and lay the groundwork for a more seamless reporting process. To support ongoing compliance, the Organization has implemented a shared calendar for both program and fiscal management teams, providing a unified view of reporting deadlines and improving coordination and accountability across departments. Additionally, the Organization’s fiscal team has implemented a separate, dedicated calendar focused on financial reporting deadlines. This targeted approach allows the team to proactively track and meet reporting timelines with promptness and consistency.

View Audit 359949

Finding 567053 (2024-002)

Material Weakness 2024

Community Foundation of Northwest Indiana, Inc.

IN

Procurement, Suspension & Debarment § 200.303 § 200.318

Finding 2024-002 – Procurement, Suspension, and Debarment Federal Grantor: Department of Health and Human Services Assistance Listing No.: Assistance Listing 93.493, Congressional Directives Federal Award Number: CE1HS52357-01-00 Federal Award Period of Performance: September 30, 2023 – September 2...

Finding 2024-002 – Procurement, Suspension, and Debarment Federal Grantor: Department of Health and Human Services Assistance Listing No.: Assistance Listing 93.493, Congressional Directives Federal Award Number: CE1HS52357-01-00 Federal Award Period of Performance: September 30, 2023 – September 29, 2026 A material weakness was issued related to internal control over suppliers under the UG audit. CFNI recognizes the need to comply with the procurement standards outlined in 2 CFR §§ 200.318-326, which require written policies addressing competition, conflicts of interest, procurement methods (micro-purchases, small purchases, sealed bids, competitive proposals, and noncompetitive procurement), oversight, efforts to engage small and disadvantaged businesses, and procurement of recovered materials, among others. To address this deficiency, CFNI is committed to enhancing its documented procurement policies for procure-to-pay processes involving federal funds. The audit identified three instances out of 40 sampled where CFNI did not retain documentation verifying that suspension and debarment reviews were conducted during the onboarding of new suppliers. Although CFNI has an established vetting process, it recognizes the need for consistent documentation to evidence compliance. CFNI will implement formalized procedures to ensure all suspension and debarment reviews are documented and retained for audit purposes. CFNI engages a third-party contractor to monitor its supplier list against suspension and debarment databases. While the vendor provided a SOC 1 report, it did not specifically cover the suspension and debarment services provided. Additionally, CFNI did not conduct testing to validate the accuracy of the third-party's results. CFNI will revise its vendor management practices to ensure the SOC 1 reports cover the relevant services, and it will establish testing procedures to confirm the reliability of the vendor's outputs. Although CFNI utilizes two processes to monitor active suppliers against suspension and debarment lists—periodic PeopleSoft program checks and an annual review by a third-party vendor—no reconciliation was documented to confirm that the supplier lists provided to and received from the third party were complete and accurate. Additionally, no testing was conducted to validate the third party’s work. CFNI will implement a reconciliation process to verify the completeness and accuracy of supplier lists before and after third-party reviews. Furthermore, it will establish a sampling and testing procedure to validate the results provided by external vendors. CFNI will develop and implement a robust supplier management policy, incorporating requirements for procurement, suspension, and debarment reviews. Responsible Official: Pamela Pokropinski, VP Finance Status of finding: Completion expected June 2025

View Audit 359944

Finding 567052 (2024-001)

Material Weakness 2024

Community Foundation of Northwest Indiana, Inc.

IN

Allowable Costs / Cost Principles Period of Performance Matching / Level of Effort / Earmarking

Finding 2024-001 – Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance Federal Grantor: United States Department of Homeland Security Assistance Listing No.: Assistance Listing 97.036, COVID-19 Disaster Grants – Public Assistance (Presidentially Declared Disas...

Finding 2024-001 – Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance Federal Grantor: United States Department of Homeland Security Assistance Listing No.: Assistance Listing 97.036, COVID-19 Disaster Grants – Public Assistance (Presidentially Declared Disasters) (FEMA) Pass-Through Grantor: Indiana Department of Homeland Security Federal Award Period of Performance: March 1, 2020 – May 11, 2023 A material weakness was identified related to internal controls over payroll expenses charged to FEMA funds, subject to the Uniform Guidance (UG) audit. This guidance requires internal controls to comply with the terms of the federal award as well as with the "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control—Integrated Framework" issued by COSO. The finding was a compliance matter and did not result in any questioned costs. Community Foundation of Northwest Indiana, Inc. and Subsidiaries (CFNI) acknowledges the finding related to the lack of documented review and approval of all timecards for payroll expenses charged to federally funded programs. In line with industry standards, CFNI prioritizes timely payroll processing and does not delay payroll for outstanding timecard approvals. While this is not a recurring issue and did not result in any questioned costs, CFNI recognizes the importance of ensuring compliance with all federal requirements. To address this finding and prevent recurrence, CFNI is implementing a comprehensive policy that mandates timely review and approval of all timecards associated with payroll expenses charged to federal grants. Additionally, CFNI is establishing a formal process to monitor adherence to this policy, including regular audits and detailed documentation of the review process. CFNI is committed to strengthening internal controls, improving oversight, and ensuring full compliance with federal grant requirements. Responsible Official: Pamela Pokropinski, VP Finance Status of finding: Completion expected June 2025

View Audit 359944

Finding 567042 (2024-006)

Significant Deficiency 2024

Sioux Falls Housing and Redevelopment Commission

SD

HUD Housing Programs Reporting Significant Deficiency

Contact Person Larissa Deedrich, Executive Director Corrective Action Plan Management has reviewed control processes and assigned staff to perform necessary controls over the reconciliation of HAP expenses. Planned Completion Date for CAP September 30, 2025

View Audit 359941

Finding 567036 (2024-005)

Significant Deficiency 2024

Sioux Falls Housing and Redevelopment Commission

SD

HUD Housing Programs Reporting Significant Deficiency

Contact Person Larissa Deedrich, Executive Director Corrective Action Plan Management has reviewed control processes and assigned staff to perform necessary controls over the reconciliation of HAP expenses. Planned Completion Date for CAP September 30, 2025

View Audit 359941

Finding 567030 (2024-004)

Significant Deficiency 2024

Sioux Falls Housing and Redevelopment Commission

SD

HUD Housing Programs Significant Deficiency

Contact Person Larissa Deedrich, Executive Director Corrective Action Plan Management has begun the process of creating a quality control plan to ensure that all HQS inspections and abatements are monitored. Staff have been trained on when to properly abate a payment and how to properly document ab...

Contact Person Larissa Deedrich, Executive Director Corrective Action Plan Management has begun the process of creating a quality control plan to ensure that all HQS inspections and abatements are monitored. Staff have been trained on when to properly abate a payment and how to properly document abatements. Planned Completion Date for CAP September 30, 2025

View Audit 359941

Finding 567024 (2024-003)

Significant Deficiency 2024

Sioux Falls Housing and Redevelopment Commission

SD

HUD Housing Programs Eligibility Significant Deficiency

Contact Person Larissa Deedrich, Executive Director Corrective Action Plan Management has begun the process of creating a quality control plan to ensure that all files are accurate and follow all local, state and federal compliance guidelines. Planned Completion Date for CAP September 30, 2025

View Audit 359941

Corrective Action Plans

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