Corrective Action Plans

Finding 1204960 (2025-001)

Material Weakness 2025

CA

Reporting Internal Control / Segregation of Duties § 200.303 § 200.510

The City is taking corrective action in response to this finding by strengthening its grant management procedures. The Director of Community Development and Public Works is responsible for overseeing these improvements, which include enhancing coordination among the Public Works Analyst, Grants Coor...

The City is taking corrective action in response to this finding by strengthening its grant management procedures. The Director of Community Development and Public Works is responsible for overseeing these improvements, which include enhancing coordination among the Public Works Analyst, Grants Coordinator, and the City's contracted engineering firm to clearly distinguish between federally and state-funded Highway Safety Improvement Program (HSIP) activities and ensure that program information aligns with current federal award documents. Key measures include requiring identification of funding sources in Staff Reports submitted to City Council prior to grant application submission, assigning unique project numbers and classifications within the City's financial system (Incode), implementing a reconciliation process to accurately align project expenditures with their funding sources before inclusion in the Schedule of Expenditures of Federal Awards (SEFA), and providing targeted staff training along with a standardized SEFA preparation checklist. All corrective actions are set for implementation effective March 18, 2026. Personnel responsible for implementation: Gerardo Marquez Position of personnel responsible: Director of Community Development and Public Works Expected date of implementation: March 18, 2026

View Audit 396633

Finding 1204958 (2025-002)

Material Weakness 2025

National Church Residences

OH

Reporting § 200.502 § 200.508 § 200.510

Condition: During the years ended June 30, 2023, 2024, and 2025, National Church Residences entered into capital advance grant agreements (Section 202) with HUD, which were directly funded to affiliates of National Church Residences, and, in turn, National Church Residences entered into notes receiv...

Condition: During the years ended June 30, 2023, 2024, and 2025, National Church Residences entered into capital advance grant agreements (Section 202) with HUD, which were directly funded to affiliates of National Church Residences, and, in turn, National Church Residences entered into notes receivable from the related parties in the same amount as the capital advance. The loan expenditures and outstanding loan balances related to the ALN 14.157 U.S. Department of Housing and Urban Development - Supportive Housing for the Elderly (Section 202) - Capital Advance were not included on the SEFA for the years ended June 30, 2025, 2024, and 2023. Planned Corrective Action: National Church Residences is in the process of establishing additional layers of internal controls to help ensure that all new agreements and any subsequent modifications are captured timely, completely, and accurately within the special purpose financial statements and SEFA. Contact person responsible for corrective action: Lindsey Dehring, Vice President of Financial Planning & Analysis Anticipated Completion Date: July 1, 2026

View Audit 396627

Finding 1204957 (2025-001)

Material Weakness 2025

Johns Hopkins Health System

MD

Reporting

2025-001: Reporting – Early Steps Grantor: Department of Education (ED) Program Title: Special Education Grants for Infants & Families Award Name: Early Steps Award Numbers: H181A230099 Assistance Listing Titles: Special Education – Grants for Infants & Families with Disabilities Assistance Listing ...

2025-001: Reporting – Early Steps Grantor: Department of Education (ED) Program Title: Special Education Grants for Infants & Families Award Name: Early Steps Award Numbers: H181A230099 Assistance Listing Titles: Special Education – Grants for Infants & Families with Disabilities Assistance Listing Number: 84.181 (Federal Portion), 64.022 (State of Florida Portion) Award Years: July 1, 2024 – June 30, 2025 Passthrough Entities: Department of Health (Federal Portion), The State of Florida Department of Health (State of Florida Portion) Management agrees with the finding and recommendation. Management acknowledges the delays in report submissions identified in the finding. The exceptions were primarily due to operational disruptions caused by Hurricane Helene, an extension request that was not formally documented, and outdated agency contact information that resulted in misdirected report submissions. While certain factors were outside of normal operational control, management recognizes the importance of timely reporting and maintaining complete and accurate documentation to support compliance with program requirements. To address these issues and strengthen internal controls, management has implemented the following corrective actions: • Established a requirement to retain written documentation for all extension requests, including evidence of approval from the granting agency. • Enhanced tracking procedures by incorporating internal due dates within reporting schedules to better monitor and ensure timely submission of required reports. These actions are designed to improve the timeliness and accuracy of reporting and to ensure a complete audit trail for all required submissions. Management will continue to monitor the effectiveness of these controls to ensure ongoing compliance and prevent recurrence of similar issues. Management will remediate this finding by June 30, 2026.

View Audit 396621

Finding 1204956 (2025-002)

Material Weakness 2025

City of Tracy

CA

Reporting

Recommendation: We recommend the City formalize program onboarding procedures for new federal awards by documenting reporting requirements and deadlines upon award acceptance and incorporating them into the City’s grants compliance process. Management should assign accountability for report preparat...

Recommendation: We recommend the City formalize program onboarding procedures for new federal awards by documenting reporting requirements and deadlines upon award acceptance and incorporating them into the City’s grants compliance process. Management should assign accountability for report preparation and review, provide training to responsible staff, and implement a monitoring control (e.g., periodic compliance checklist review) to ensure required reports are submitted timely and supporting documentation is retained. Views of Responsible Officials and Planned Corrective Action: The City agrees with this finding. The City has taken steps to improve its processes/procedures to insure timely submission of all required reports.

View Audit 396609

Finding 1204955 (2025-001)

Material Weakness 2025

Casa Blanca Community School, Inc.

AZ

Allowable Costs / Cost Principles § 200.430

Finding Number: 2025‐001, 2024‐002 Program Name/Assistance Listing Title: Indian School Equalization Program Assistance Listing Number: 15.042 Contact Person: Eloyce Gillespie, Business Manager Anticipated Completion Date: February 20, 2026 Planned Corrective Action: Casa Blanca Community School com...

Finding Number: 2025‐001, 2024‐002 Program Name/Assistance Listing Title: Indian School Equalization Program Assistance Listing Number: 15.042 Contact Person: Eloyce Gillespie, Business Manager Anticipated Completion Date: February 20, 2026 Planned Corrective Action: Casa Blanca Community School completed the required review process in accordance with the established procedure, however, the error still occurred due to a system limitation. Specifically, although staff followed the process and performed the required review, the system does not currently flag or prevent adjustments that exceed the allowable threshold from being rolled into the next fiscal year. Because this condition is not automatically identified or restricted by the system, the adjustment was able to process despite the control being executed. To address this, the School will work with the system support team to evaluate options for adding automated validation or warning to prevent adjustments from rolling into the next fiscal year when limits are exceeded, which will include manual review. These actions were completed by February 20, 2026, and the process owner will monitor compliance.

View Audit 396606

Finding 1204953 (2025-002)

Material Weakness 2025

Casa Blanca Community School, Inc.

AZ

School Nutrition Programs Subrecipient Monitoring Cash Management

Finding Numbers: 2025‐002 Program Name/Assistance Listing Title: Child Nutrition Cluster Assistance Listing Numbers: 10.553, 10.555, 10.559 Contact Person: Eloyce Gillespie, Business Manager Anticipated Completion Date: April 30, 2026 Planned Corrective Action: Casa Blanca Community School has imple...

Finding Numbers: 2025‐002 Program Name/Assistance Listing Title: Child Nutrition Cluster Assistance Listing Numbers: 10.553, 10.555, 10.559 Contact Person: Eloyce Gillespie, Business Manager Anticipated Completion Date: April 30, 2026 Planned Corrective Action: Casa Blanca Community School has implemented a review process to monitor expenditures across all funds. As part of this process, Management has adopted a review process relating to expenditures of all funds to minimize any negative effect on cash for these funds. This review includes a comparison of expenditures to budgets for all funds to ensure that they do not exceed anticipated revenues. Additionally, if it is determined that the program will exceed the anticipated revenue, Management will determine if such overages (negative cash balances) are to be addressed through operating transfers using Indian School Equalization Program funding.

View Audit 396606

Finding 1204950 (2025-001)

Material Weakness 2025

Innovative Health Solutions

CA

Reporting Significant Deficiency Internal Control / Segregation of Duties

Finding 2025-01 Internal Control Over Financial Reporting: Revenue Recognition Management concurs with the finding. The condition cited was an oversight and was missed during the transition process of bringing the accounting function in-house, which was previously outsourced to an outside firm. We w...

Finding 2025-01 Internal Control Over Financial Reporting: Revenue Recognition Management concurs with the finding. The condition cited was an oversight and was missed during the transition process of bringing the accounting function in-house, which was previously outsourced to an outside firm. We will perform a review of all promises to give transactions prior to closing the books to ensure proper revenue recognition.

View Audit 396574

Finding 1204949 (2025-002)

Material Weakness 2025

Innovative Health Solutions

CA

Reporting Cash Management Significant Deficiency

Finding 2025-02 Schedule of Expenditures of Federal Awards. Management concurs with the finding. We will continue to refine our process under GAAP reporting to reduce reconciling items.

View Audit 396574

Finding 1204948 (2025-001)

Material Weakness 2025

Universidad Interamericana De Puerto Rico, Inc.

PR

Reporting Matching / Level of Effort / Earmarking

As a corrective action, the University will implement the following: Assignment of a dedicated resource: A person will be appointed as responsible for the FEMA project to oversee the functioning of the control, ensuring the proper collection and monitoring of the information (“FEMA Coordinator”). We...

As a corrective action, the University will implement the following: Assignment of a dedicated resource: A person will be appointed as responsible for the FEMA project to oversee the functioning of the control, ensuring the proper collection and monitoring of the information (“FEMA Coordinator”). We are already coordinating with the Office of the President for the corresponding approval of the new structure. Inclusion of obligated and incurred expenditures related to the Department of Homeland Security/FEMA in the corresponding SEFA report for each year: We have instructed the Institutional Director of the Office of Accounting for External Programs to notify the FEMA Coordinator, the Associate VP of Management and Budget, the Associate VP of Accounting and Finance and the VP of Management, Finance and Systemic Services when the automated SEFA report is ready, so that the FEMA Coordinator can provide her all the information to be included for the Department of Homeland Security/FEMA. The Institutional Director will include this information and send the amended SEFA to the four persons mentioned above. Implementation timeline: We estimate that these actions will be fully operational by July 1, 2026. We are committed to closely monitoring these measures and ensuring their successful implementation, guaranteeing compliance with internal control standards.

View Audit 396572

Finding 1204947 (2025-001)

Material Weakness 2025

Garfield County School District No. 16

CO

Allowable Costs / Cost Principles School Nutrition Programs Cash Management § 200.302 § 200.403

Garfield County School District No. 16 respectfully submits the following corrective action plan for the year ended June 30, 2025. Finding 2025-001 Reporting Significant Deficiency in Internal Control over Compliance and Other Non-Compliance Corrective Action: The District agrees with the finding re...

Garfield County School District No. 16 respectfully submits the following corrective action plan for the year ended June 30, 2025. Finding 2025-001 Reporting Significant Deficiency in Internal Control over Compliance and Other Non-Compliance Corrective Action: The District agrees with the finding related to insufficient supporting documentation for the National School Lunch Program reimbursement claims, as it related to sack lunches/field meals. Personnel Responsible for Corrective Action: Jody Williams, Food Service Director Anticipated Completion Date: The District has corrected this issue as of the date of this report, and now requires formal written requests for all sack lunches/field meals, to ensure counts are properly documented.

View Audit 396571

Finding 1204946 (2025-001)

Material Weakness 2025

Chief Leschi Schools, Inc.

WA

Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.430

15.047 Indian Education Facilities, Operations, and Maintenance – Assistance Listing No. Recommendation: To implement a stronger system of review for ensuring that all changes in employee payroll are properly implemented and approved. Explanation of disagreement with audit finding: There is no disag...

15.047 Indian Education Facilities, Operations, and Maintenance – Assistance Listing No. Recommendation: To implement a stronger system of review for ensuring that all changes in employee payroll are properly implemented and approved. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Human Resources (HR) is working with Finance to process retroactive compensation for the full underpaid amount owed. Associated DRS contributions will also be reviewed and corrected to ensure full compliance. Moving forward, HR will implement an enhanced verification control at the beginning of each fiscal year. This includes documented confirmation of pay accuracy for a minimum of two employees per department following salary schedule implementation and prior to the first payroll. Ideally, this control will be performed jointly by HR and Finance to ensure segregation of duties and consistency. Name(s) of the contact person(s) responsible for corrective action: Beth Wilde, Director of Human Resources Planned completion date for corrective action plan: July 1, 2026

View Audit 396562

Finding 1204944 (2025-002)

Material Weakness 2025

Box Butte General Hospital

NE

Material Weakness Matching / Level of Effort / Earmarking

FINDING 2025-002 USDA LOAN COVENANTS COMPLIANCE Effect and recommendation The Hospital implemented a new accounting and EHR system in May 2023 and experienced significant delays in being able to bill and process claims. In addition, there was a cyberattack on the Hospital’s claims processing clearin...

FINDING 2025-002 USDA LOAN COVENANTS COMPLIANCE Effect and recommendation The Hospital implemented a new accounting and EHR system in May 2023 and experienced significant delays in being able to bill and process claims. In addition, there was a cyberattack on the Hospital’s claims processing clearinghouse in February 2024 that took the Hospital offline from processing claims. These two events had a negative and material impact on the Hospital’s cash collections over the last two years resulting in the Hospital not having the required 90 days of cash on hand. The Hospital did receive a waiver from the USDA regarding not meeting this loan covenant for fiscal year 2025. Views of responsible officials and planned corrective actions The Hospital has made several changes to its system since the initial implementation and has contracted with a third party vendor to make improvements in its billing and collection processes. These changes are expected to result in cash collection improvements. Additionally, the Centers for Medicare and Medicaid Services (CMS) approved the State of Nebraska’s preprint and provider assessment waiver that governs Nebraska’s Medicaid Directed Payment Program (Program). CMS’ approval of the Program is for the period July 1, 2024 through December 31, 2024 and January 1, 2025 to December 31, 2025 only, with future years subject to an annual approval by CMS. These additional funds are also expected to significantly improve the Hospital’s days of cash on hand by the end of fiscal year 2026. Hospital management notified its USDA representatives and received a waiver from the 90 days of cash on hand for the period ended June 30, 2025. Anticipated completion date Ongoing

View Audit 396560

Finding 1204943 (2025-001)

Material Weakness 2025

City of Socorro, Texas

TX

Subrecipient Monitoring Reporting

Management’s view: Management acknowledges the audit finding that the City failed to submit required performance reports—including the General Assessment and quarterly Financial Status Reports (FSRs)—within the required deadlines. Management is committed to ensuring full compliance with all reportin...

Management’s view: Management acknowledges the audit finding that the City failed to submit required performance reports—including the General Assessment and quarterly Financial Status Reports (FSRs)—within the required deadlines. Management is committed to ensuring full compliance with all reporting obligations going forward. The actions outlined in the corrective action plan will provide stronger internal controls, clearer accountability, and improved on‑time submission of all required performance reports. Proposed corrective action: In reference to Finding 2025-001 related to Grant 3007209, management has reviewed the Adopted Policy 67, which is currently in effect and meets all requirements identified in the newly issued findings for Grant 3007209. After a comprehensive review, we have determined that no revisions to the policy are necessary at this time, as the existing policy continues to align with the updated standards and expectations. To strengthen implementation, the Socorro Police Department has increased internal checkpoints and assigned additional support staff to ensure consistent adherence to the policy and timely submission of all required reports going forward. The department is fully aware of the areas of noncompliance noted in the finding and is actively working to address and correct these issues. In support of this commitment, please find the enclosed statement from Chief of Police Robert C. Rojas: “The Socorro Police Department is committed to meeting all reporting requirements and deadlines under the Operation Stonegarden grant. We have established checkpoints and assigned staff to assist with preparing and reviewing reports to ensure they are accurate and submitted on time. This added oversight builds accountability and redundancy into the process, preventing delays in submissions. These steps reflect our responsibility to remain compliant and our commitment to good stewardship of this program.” Anticipated correction date: Immediately Responsible official: Chief of Police, Robert C. Rojas and Lourdes Gomez, Finance Director

View Audit 396548

Finding 1204942 (2025-002)

Material Weakness 2025

City of Covina

CA

Procurement, Suspension & Debarment Reporting Material Weakness

2025-002 Reporting Recommendation: We recommend the City review and update internal controls to ensure that the City submits accurate and timely reporting. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Based on t...

2025-002 Reporting Recommendation: We recommend the City review and update internal controls to ensure that the City submits accurate and timely reporting. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Based on the City’s review, the omission of this specific requirement from the bid documentation and subsequent reporting process appears to have been inadvertent and the result of the circumstances described above, rather than the result of intentional noncompliance. The City has since reviewed its procedures and is implementing additional internal review measures to help ensure that all applicable grant requirements are incorporated into future procurement and reporting processes. Name(s) of the contact person(s) responsible for corrective action: Alana Mantilla, Michael Lee, and Rafael Fajardo Planned completion date for corrective action plan: June 2026

View Audit 396544

Finding 1204941 (2025-001)

Material Weakness 2025

Mount Mary University, Inc.

WI

Student Financial Aid Reporting Significant Deficiency

U.S. Department of Education Mount Mary University respectfully submits the following corrective action plan for the year ended June 30, 2025. Audit period: July 01, 2024 - June 30, 2025 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered co...

U.S. Department of Education Mount Mary University respectfully submits the following corrective action plan for the year ended June 30, 2025. Audit period: July 01, 2024 - June 30, 2025 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FINANCIAL STATEMENT AUDIT Our audit did not disclose any matters required to be reported in accordance with Government Auditing Standards. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS U.S. Department of Education 2025-001 Student Financial Aid Cluster – Assistance Listing No. 84.063 & 84.268 Recommendation: We recommend that the University reviews withdrawals monthly to ensure that the students are reported correctly to NSC and subsequently to NSLDS. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The University has submitted and reviewed the four students and have submitted corrections for incorrect statuses and effective dates. Name(s) of the contact person(s) responsible for corrective action: Brian Olson, Vice President of Finance and Administration Planned completion date for corrective action plan: June 30, 2026 *** If the U.S. Department of Education has questions regarding this plan, please call Brian Olson, Vice President of Finance and Administration, at 414-930-3139.

View Audit 396542

Finding 1204931 (2025-002)

Material Weakness 2025

Wellspace Health

CA

Subrecipient Monitoring Internal Control / Segregation of Duties

Corrective Action Plan: The organization will continue with its ongoing implementation of several measures to ensure accuracy and compliance in the sliding fee process. Monthly audits will continue to be conducted to review all sliding fee application forms from the previous month for accuracy and v...

Corrective Action Plan: The organization will continue with its ongoing implementation of several measures to ensure accuracy and compliance in the sliding fee process. Monthly audits will continue to be conducted to review all sliding fee application forms from the previous month for accuracy and verifying information in NextGen. Skills assessments will continue to be conducted in January and July to identify staff needing refresher training. A sliding fee wage training video has been added to Relias and will be required for all staff involved in the process, providing guidance on wage calculation. This training will be distributed twice a year. Additionally, sliding fee monthly audit results will be reported quarterly at QA/QI meetings. To enhance accountability, the organization has implemented an expiration policy for applications lacking supporting documentation within 30 days. The system will automatically expire these applications on day 31, prompting staff to have the patient reapply. Patients who fail to provide the required documentation within the timeframe will receive an invoice or statement for all services rendered during the 30-day period. Estimated completion date: September 30, 2026 Contact person: Jessica Dana, Vice President of Strategy

View Audit 396538

Finding 1204928 (2025-002)

Material Weakness 2025

Glen Oaks Community College

MI

Procurement, Suspension & Debarment § 200.320

Procurement Noncompliance Auditor Description of Condition and Effect. During our testing of four procurement transactions charged to the federal award, we noted that the College procured goods/services totaling $18,750 from a single vendor using a sole source justification. The College did not obta...

Procurement Noncompliance Auditor Description of Condition and Effect. During our testing of four procurement transactions charged to the federal award, we noted that the College procured goods/services totaling $18,750 from a single vendor using a sole source justification. The College did not obtain the required quotes for the purchase. Our review of the documentation determined that the rationale provided for sole source procurement did not meet the criteria outlined in Uniform Guidance. As a result, the College did not follow required competitive procurement procedures. Because competitive procurement procedures were not used, the College may not have obtained the best price or ensured full and open competition. Auditor Recommendation. We recommend that the College strengthen internal controls to ensure personnel verify and document that sole source criteria under 2 CFR §200.320 are fully met before awarding a procurement without competition. Corrective Action. Staff will retain documentation to substantiate single-source procurement transactions prior to award or contract execution and will be reviewed by the Controller. Responsible Person. Jennifer Dodson, Controller Anticipated Completion Date. June 30, 2026

View Audit 396536

Finding 1204927 (2025-001)

Material Weakness 2025

Glen Oaks Community College

MI

Allowable Costs / Cost Principles Reporting Significant Deficiency

Improper Period Recognition of SEFA Expenses Auditor Description of Condition and Effect. During our testing of compliance and related controls, we identified instances where expenses covering service periods extending beyond the fiscal year under audit were recorded in full rather than prorated for...

Improper Period Recognition of SEFA Expenses Auditor Description of Condition and Effect. During our testing of compliance and related controls, we identified instances where expenses covering service periods extending beyond the fiscal year under audit were recorded in full rather than prorated for the portion incurred during the fiscal year. This resulted in an initial overstatement of expenses reported on the Schedule of Expenditures of Federal Awards (SEFA). Initial SEFA amounts were not accurately stated in accordance with accrual accounting requirements. Auditor Recommendation. We recommend the College implement procedures to ensure expenses are recorded in the proper period in accordance with GAAP and Uniform Guidance requirements. Corrective Action. The Controller will review supporting documentation during the completion of the SEFA, which will then be reviewed by a second, qualified individual to ensure GAAP is being followed and that expenses are only being recorded when incurred. Responsible Person. Jennifer Dodson, Controller Anticipated Completion Date. June 30, 2026

View Audit 396536

Finding 1204926 (2025-001)

Material Weakness 2025

Elizabethtown College

PA

Student Financial Aid Subrecipient Monitoring Internal Control / Segregation of Duties

Finding 2025-001 Condition During our audit, 1 out of 3 employees selected for testing received a bonus payment for achieving first year enrollment goals. The College then determined 2 employees received such bonuses and additional testing confirmed a total of 2 out of 27 employees who were involved...

Finding 2025-001 Condition During our audit, 1 out of 3 employees selected for testing received a bonus payment for achieving first year enrollment goals. The College then determined 2 employees received such bonuses and additional testing confirmed a total of 2 out of 27 employees who were involved in the College's admissions/recruiting, financial aid and registrar offices received bonuses based on their contributions towards enrollment performance. These bonuses were paid from internal College funds and not from Title IV funds. Corrective Action Plan Corrective Action Planned: The college implemented a policy on incentive pay citing the restrictions and banning incentive pay for specific job duties. The policy and a standard form for awarding additional compensation have been reviewed and approved by senior leadership and posted to the college’s human resources website. Name(s) of Contact Person(s) Responsible for Corrective Action: Amanda Stahl, Vice President for Finance and Ann Eckert, Assistant Vice President for Human Resources will be responsible for ensuring adherence to the policy and review of any awarding of additional compensation. Anticipated Completion Date: The policy and forms were approved and completed September 30, 2025.

View Audit 396527

Finding 1204921 (2025-001)

Material Weakness 2025

Franciscan Missionaries of Our Lady Health System, Inc.

LA

Cash Management § 200.303 § 200.305

Corrective Action Plan In the event that the System receives federal cash advances prior to the cash expenditures, the System will perform an additional financial review of any advanced payments compared to the related expenditures. Should accounting identify advances not yet spent, they will inquir...

Corrective Action Plan In the event that the System receives federal cash advances prior to the cash expenditures, the System will perform an additional financial review of any advanced payments compared to the related expenditures. Should accounting identify advances not yet spent, they will inquire with the grant administrator responsible for the grant to review their advance fundings, any potential resulting interest calculations. Anticipated Completion Date June 30, 2026 Name of Contact Person for Corrective Action Amanda Hymel, Corporate Controller

View Audit 396525

Finding 1204920 (2025-001)

Material Weakness 2025

Morenci Unified School District No. 18

AZ

School Nutrition Programs Cash Management Eligibility

2025-001 ELIGIBILITY Program: Child Nutrition Cluster CFDA Number: 10.533, 10.555, 10.559 Federal Agency: U.S. Department of Agriculture Pass-Through Agency: Arizona Department of Education Grantor Number: ADE ED09-0001 Type of Finding: Noncompliance, significant deficiency in internal control Compl...

2025-001 ELIGIBILITY Program: Child Nutrition Cluster CFDA Number: 10.533, 10.555, 10.559 Federal Agency: U.S. Department of Agriculture Pass-Through Agency: Arizona Department of Education Grantor Number: ADE ED09-0001 Type of Finding: Noncompliance, significant deficiency in internal control Compliance Requirement: E. Eligibility Criteria: Federal regulations require participating districts to determine student eligibility for free, reduced price, and paid meals based on household income and household size thresholds established annually by the U.S. Department of Agriculture. Applications must be reviewed and approved using the current income eligibility guidelines and appropriate calculation methods to ensure correct benefit levels. Condition: During testing of 25 student meal applications, we noted 1 instance where the District incorrectly calculated household income relative to household size when determining eligibility status. In these cases, students were approved for free price meals when the income calculations supported reduced meal status. Cause: The District did not have sufficient review controls in place to ensure that eligibility determinations were recalculated or independently verified prior to approval. Effect: As a result of the errors, certain students received free meal benefits for which they were not eligible. This may have resulted in improper program reimbursement claims and indicates that the District’s controls over eligibility determinations were not operating effectively. Questioned Costs: The projected questioned costs related to these errors are not expected to be material; however, the District may have received reimbursement at the free price rate rather than the reduced rate for affected meals. Corrective Action: The District will review their meal application process and implement a more stringent review to ensure eligibility criteria are met based on household income. Planned completion date for corrective action plan: For the period ending June 30, 2026. Name of the contact person responsible for corrective action: Erika Aguallo, Business Manager

View Audit 396523

Finding 1204917 (2025-001)

Material Weakness 2025

City of Madera

CA

Subrecipient Monitoring HUD Housing Programs Period of Performance

Finding 2025-001 Special Tests and Provision – Internal Control and Compliance over Environmental Reviews (Significant Deficiency) Criteria: Title 24 U.S. Code of Federal Regulations sections 58.1, 58.22, 58.34, 58.35, and 570.604 require projects to have an environmental review unless they meet cri...

Finding 2025-001 Special Tests and Provision – Internal Control and Compliance over Environmental Reviews (Significant Deficiency) Criteria: Title 24 U.S. Code of Federal Regulations sections 58.1, 58.22, 58.34, 58.35, and 570.604 require projects to have an environmental review unless they meet criteria specified in the regulations that would exempt or exclude them from environmental certification requirements. For projects where the environmental review was not performed, a written documentation that the review was not required must be prepared. Condition and Context: The City could not provide support that there was pre-award or post-award review of grant projects to determine if a project requires an environmental review or is categorically excluded from the environmental review requirements. The City did not have adequate internal controls to ensure compliance with the special test – environmental review requirements. Testing was performed over each requirement for the City. Out of a total population of twelve (12) projects, we selected a sample of four (4) projects to test for environmental reviews. Four (4) out of the four (4) projects tested did not have an exemption report prepared in a timely manner. The sample was not intended to be, and was not, a statistically valid sample. City’s Corrective Action Plan: The City will reinforce its standard operating procedure concerning Environmental Reviews (ER) and will reinsure that environmental reviews are properly completed for every awarded grant project. Corrective Action Plan (Continued) Contact person responsible for corrective action: Michael Lima, Finance Director Anticipated completion date: June 30, 2026

View Audit 396513

Finding 1204912 (2025-002)

Material Weakness 2025

Kildahl Park Pointe Cooperative

MN

Reporting Internal Control / Segregation of Duties

Recommendation: We recommend that the Cooperative continue to review the auditor prepared adjusting journal entries and financial statements with the intention of understanding and acceptance of responsibility for reporting under generally accepted accounting principles. Action Taken: The Cooperativ...

Recommendation: We recommend that the Cooperative continue to review the auditor prepared adjusting journal entries and financial statements with the intention of understanding and acceptance of responsibility for reporting under generally accepted accounting principles. Action Taken: The Cooperative will continue to review the auditor prepared adjusting journal entries and financial statements with the intention of understanding and acceptance of responsibility for reporting under generally accepted accounting principles. Planned Completion Date: Not Applicable.

View Audit 396512

Finding 1204911 (2025-001)

Material Weakness 2025

Kildahl Park Pointe Cooperative

MN

Internal Control / Segregation of Duties

Recommendation: We recommend that the Cooperative continue to segregate incompatible duties as best it can within the limits of what the Cooperative considers to be cost beneficial. Action Taken: The Cooperative reviews and makes improvements to its internal controls on an ongoing basis and attempts...

Recommendation: We recommend that the Cooperative continue to segregate incompatible duties as best it can within the limits of what the Cooperative considers to be cost beneficial. Action Taken: The Cooperative reviews and makes improvements to its internal controls on an ongoing basis and attempts to maximize the segregation of duties in all areas within the limits of the staff available. Planned Completion Date: Not Applicable.

View Audit 396512

Finding 1204910 (2025-101)

Material Weakness 2025

Graham County Community College District

AZ

Student Financial Aid Reporting Special Tests & Provisions § 200.303

Financial Statement Findings 2025-01 The District’s control procedures over IT systems and data were not sufficient, which increases the risk that the District may not adequately protect those systems and data. Contact: Thomas Thompson, Chief Information Officer Anticipated completion date: June 30,...

Financial Statement Findings 2025-01 The District’s control procedures over IT systems and data were not sufficient, which increases the risk that the District may not adequately protect those systems and data. Contact: Thomas Thompson, Chief Information Officer Anticipated completion date: June 30, 2026__________________________________________ Corrective Action Plan: The District will prioritize the development and formal documentation of IT policies and procedures addressing logical access controls, system security, and vendor management. These policies will align with recognized industry standards and will include processes to ensure consistent implementation and compliance. a) User access assignment and review b) Timely removal of access c) Enhance verification of assignment through available and to-be-developed reporting tools d) The District will review and enhance formal procedures for evaluating, awarding, and monitoring IT vendor contracts. This will include documenting vendor qualifications, defining security expectations in contracts, and performing periodic reviews to ensure vendors comply with contractual and security requirements. e) Management will implement supervisory review controls to ensure adherence to IT policies and procedures. Federal Award Findings 2025-101 The District did not timely report required student information to the federal agency, risking students not being asked to repay financial assistance. Contact: Sharon Montoya, Director, Financial Aid & Veteran Services Anticipated completion date: June 30, 2026__________________________________________ Corrective Action Plan: The District will implement procedures to ensure all student enrollment status changes are reported to the National Student Loan Data System (NSLDS) within the required 60-day timeframe. This includes establishing a standardized reporting schedule and utilizing system-generated reports to monitor pending status changes. a) Assign monitoring and oversight responsibilities in the Financial Aid department b) Implement ongoing monitoring control within the Financial Aid department c) Monthly inquiring into the Financial Aid department process by Fiscal Control

View Audit 396510

Corrective Action Plans

Filters