Corrective Action Plans

Finding 566934 (2024-003)

Significant Deficiency 2024

TN

Cash Management Eligibility Reporting

Corrective Action – GYAC has purchased an electronic system that assists with the tracking of meal count sheets and attendance rosters. This system compares the names on the roll with the number of meals being claimed, ensuring that participant rosters are accurately maintained and matched with meal...

Corrective Action – GYAC has purchased an electronic system that assists with the tracking of meal count sheets and attendance rosters. This system compares the names on the roll with the number of meals being claimed, ensuring that participant rosters are accurately maintained and matched with meal delivery records, thereby preventing discrepancies and reducing the error rate in submissions. Responsible for Corrective Action: Rosman T. Randle, Executive Director Date of Implementation: June 2025

View Audit 359805

Finding 566933 (2024-002)

Significant Deficiency 2024

Giving Youth A Chance Initiative

TN

Cash Management Reporting Internal Control / Segregation of Duties

Corrective Action – This is a repeat finding and improvements have been made since the release of the December 31, 2022, audit. In addition to retraining staff to enhance the accuracy of meal counts, GYAC has purchased an electronic system (KID KARE) to assist with tracking both meal count sheets an...

Corrective Action – This is a repeat finding and improvements have been made since the release of the December 31, 2022, audit. In addition to retraining staff to enhance the accuracy of meal counts, GYAC has purchased an electronic system (KID KARE) to assist with tracking both meal count sheets and attendance rosters. This system ensures that meal counts and attendance rosters are reconciled, reducing the error rate in submissions. The system also checks for errors prior to claim submission and compares names on the roll with the number of meals being claimed for accuracy. In addition, for Summer 2025, we have already rolled out a new Meal Counter App, which was recommended by the State of Tennessee. This mobile-based tool eliminates the need for manual meal count sheets and has already reduced entry errors and improved accuracy.

View Audit 359805

Finding 566929 (2024-001)

None 2024

Economic Opportunity Commission of Nassau County, Inc.

NY

Reporting Internal Control / Segregation of Duties

EOC will ensure that the audit and single audit are filed timely in the next fiscal year, and all reports will be submitted by its due date.

View Audit 359796

Finding 566908 (2024-001)

Significant Deficiency 2024

City of Norton

OH

Subrecipient Monitoring Special Tests & Provisions Reporting § 200.208 § 200.328

Finding Number: 2024-001 Planned Corrective Action: City of Norton will comply with all federal grant compliance requirements – including reporting requirements and deadlines. Anticipated Completion Date: June 2025 Responsible Contact Person: Pamela Keener, Finance Director

View Audit 359778

Finding 566904 (2024-001)

Significant Deficiency 2024

Yuma County Water Users' Association

AZ

Reporting Significant Deficiency Matching / Level of Effort / Earmarking

Views of the Responsible Officials and Planned Corrective Actions The Yuma County Water Users’ Association acknowledges the findings related to the nonperformance of required quarterly financial reporting under the Infrastructure Investment and Jobs Act (IIJA) loan agreements. The primary cause of t...

Views of the Responsible Officials and Planned Corrective Actions The Yuma County Water Users’ Association acknowledges the findings related to the nonperformance of required quarterly financial reporting under the Infrastructure Investment and Jobs Act (IIJA) loan agreements. The primary cause of this issue was the absence of necessary data—specifically, detailed actual expense information—which was not provided by the Imperial Irrigation District (IID). Without this information, the Association was unable to complete and submit the quarterly reports as required under the terms of the agreement. The Association is fully committed to resolving this issue and ensuring ongoing compliance with all provisions of the loan agreements. We are actively engaging with the relevant parties to obtain the required data and implement measures to prevent future delays in financial reporting. Corrective Actions: To address this issue, the Association will collaborate closely with both the Bureau of Reclamation and the Imperial Irrigation District (IID) to ensure timely receipt of quarterly actual expense data. Specifically: • At the end of each quarter, the Association will issue a formal request to IID for detailed expense data. • Follow-up reminders will be sent as necessary to facilitate timely submission. • This coordination will support the Association’s ability to meet quarterly financial reporting deadlines as required by the IIJA loan agreements. Timeline for Implementation: The corrective actions outlined above will be implemented immediately. Full compliance with quarterly reporting requirements is expected by the end of the second quarter.

View Audit 359771

Finding 566901 (2024-004)

None 2024

Helping Ourselves Pursue Enrichment, Inc.

AZ

Allowable Costs / Cost Principles § 200.403 § 200.414

This discrepancy resulted from a lack of understanding by the CFO in processing grant related funding. Grant policies have been updated, and personnel trained to direct and understand the role of independent accounting by funding sources through class codes. Anticipated completion date: 8/31/25. R...

This discrepancy resulted from a lack of understanding by the CFO in processing grant related funding. Grant policies have been updated, and personnel trained to direct and understand the role of independent accounting by funding sources through class codes. Anticipated completion date: 8/31/25. Responsible contact person: John Carroll, CFO

View Audit 359758

Finding 566892 (2024-003)

Significant Deficiency 2024

Thurston County Food Bank

WA

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.214 § 200.318

Finding 2024-003: TCFB was negligent in two areas for one of their purchases: No record of vendor verification that they were not suspended or disbarred and no WSDA prior approval for the purchase which was over $5,000. This was in violation of both their internal procedures and WSDA requirements. T...

Finding 2024-003: TCFB was negligent in two areas for one of their purchases: No record of vendor verification that they were not suspended or disbarred and no WSDA prior approval for the purchase which was over $5,000. This was in violation of both their internal procedures and WSDA requirements. The Problem: During testing the auditors noted that one instance of purchasing using WSDA funds was made without WSDA prior approval and proper documentation of suspension and debarment or WSDA prior approval. Established Standard: Organization must verify SAM registration and conduct suspension, and debarment checks prior to entering into any sub-agency agreement, contract, purchase, or equipment repair over $5,000. It is recommended that lead agency verifies, at least annually, that sub agencies and vendors are not suspended or debarred. Information about suspension and debarment checks is to be entered onto a spreadsheet of approved vendors. When the lead agency enters into a covered transaction with another agency or vendor, lead agency must verify that the entity with whom business is transacted is registered with SAM and is not excluded or disqualified. There are two methods for verification: A. Checking SAM.GOV exclusions (this method requires saving a copy of the verification search) B. Collecting a signed certification from the vendor. Actions to be taken: • Updated training of TCFB staff on the Policy/Procedures for procurements using WSDA funding. • Create step-by-step instructions for purchases using WSDA funding. • Effective October 1, 2024 WSDA’s threshold for preapprovals changed to $10,000. We will update our purchasing policy to reflect this change. Action Assignments: • Instruction checklist will be created by lead purchaser. • Lead purchaser will ensure that any purchases follow the Policy/Procedures for procurement. • Lead purchaser will be responsible for documenting SAM registration, Suspension and Debarment check, and WSDA pre-approvals. The documentation will consist of a copy of the exclusions page on SAM.GOV, as well as a spreadsheet of approved vendors with a date of last check. Timeline: • Instruction checklist for purchases using WSDA funds will be created by July 1st, 2025. • A spreadsheet has already been created to capture the information concerning Suspension and Debarment checks. A separate folder contains copies of each entities exclusion page from SAM.GOV. Verify Implementation: • In July 2025 Lead Purchaser will submit to the Executive Director: A. A copy of step-by-step instruction checklist. B. A copy of the spreadsheet with Suspension and Debarment checks C. Copies of exclusion pages from SAM.GOV Finance Dept. will verify invoice have received WSDA prior Approvals

View Audit 359751

Finding 566887 (2024-002)

Significant Deficiency 2024

Thurston County Food Bank

WA

Subrecipient Monitoring Allowable Costs / Cost Principles § 200.332

Finding 2024-002: TCFB was negligent in monitoring sub-recipients during the grant agreement period. The Problem: During testing, the auditors noted that one of the three sub-recipients tested did not receive a site visit during the grant agreement period. Established standard Three programs requir...

Finding 2024-002: TCFB was negligent in monitoring sub-recipients during the grant agreement period. The Problem: During testing, the auditors noted that one of the three sub-recipients tested did not receive a site visit during the grant agreement period. Established standard Three programs require sub-agency monitoring visits. EFAP (3 sub-agencies) requires each sub-agency to be monitored on site once each biennium (2 year agreement period). TEFAP (40 sub-agencies) requires that a minimum of 10% of sub-agencies be monitored on site once each year. CSFP (3 sub-agencies) requires each agency to be monitored on site once every 2 years. Actions to be taken - While the EFAP requirement was used for the test above, this plan will include monitoring visits for all 3 programs. - An additional staff member will be added to the contract team who will be responsible for on-site monitoring visits once trained. - Plan out which agencies should be visited in which years. - Create a shared calendar that includes the time period visits should take place in, when to reach out to sub-agencies to schedule visits, who will conduct visits. Action assignments - The entire contract team will work together to create the calendar. - Contracts Manager and Commodities Coordinator will plan out which sub-agencies to visit, and when to visit them. - Contracts Manager and new team member will schedule and conduct the first 2 site reviews, after which the new team member will take the lead with support from the others. Timeline - The additional contract team member will be added July 1st, 2025, but will be available for planning meetings before then. - Ordered list of sub-agency visits will be completed by the end of May 2025. - Shared calendar will be fully completed by the end of June 2025. Verify implementation - The Contracts Manager will report progress of monitoring visits to CEO/ED quarterly.

View Audit 359751

Finding 566871 (2024-001)

Significant Deficiency 2024

Thurston County Food Bank

WA

Questioned Costs Allowable Costs / Cost Principles Cash Management § 200.430

Finding 2024-001: Internal controls and adherence to compliance were not followed with regards to an appropriate level of approval of management that is charged to the Coronavirus State and Local Recovery Funds and the Food Cluster Program. The Problem: CEO timesheets were not reviewed or approved b...

Finding 2024-001: Internal controls and adherence to compliance were not followed with regards to an appropriate level of approval of management that is charged to the Coronavirus State and Local Recovery Funds and the Food Cluster Program. The Problem: CEO timesheets were not reviewed or approved by our Board of Directors in 2024 so proper oversight was not being done. Corrective Action: The procedure we had in place was that our Board Chairperson would review and approve our CEO timesheet entries each payroll period. This procedure was followed in prior years. In January 2024 the Chairperson changed to a new Chairperson and this person did not receive proper training on how to approve the CEO timesheet. When the auditors brought our attention to this situation in March of 2025, we immediately contacted the current and previous Board Chairs, HR Director, and Interim CEO. They worked together to train the present Board Chairperson on how to access the CEO timesheet entries, review them and approve them in a timely manner. This process is being used every pay period and our reports show that all timesheets are approved. We also printed out all timesheets going back to January and had the Board Chair review and sign those copies. Going forward we will be sure that proper training is done when there is a change in either the Board Chair or the CEO/Ed position.

View Audit 359751 Questioned Costs: $1

Finding 566867 (2024-004)

Material Weakness 2024

Harris-Stowe State University

MO

Subrecipient Monitoring Reporting Cash Management § 200.510

Finding 2024-004 Personnel Responsible for Corrective Action: Director of Sponsored Programs - Eva Kain, Grant Accountant – Charme Benson and Comptroller – Steve Wille Anticipated Completion Date: June 30, 2025 Corrective Action Plan:. The Grant Accountant, in collaboration with the Comptroller...

Finding 2024-004 Personnel Responsible for Corrective Action: Director of Sponsored Programs - Eva Kain, Grant Accountant – Charme Benson and Comptroller – Steve Wille Anticipated Completion Date: June 30, 2025 Corrective Action Plan:. The Grant Accountant, in collaboration with the Comptroller and Director of Sponsored Programs, will compile SEFA data on a quarterly basis and reconcile it against CX reports. The Sponsored Programs Director will verify all Assistance Listing Numbers (ALNs), subrecipient amounts, and accruals. Documentation of all federal awards and drawdowns will be maintained in a centralized repository for internal and audit access.

View Audit 359750

Finding 566865 (2024-007)

Material Weakness 2024

Harris-Stowe State University

MO

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.403

Finding 2024-007 Personnel Responsible for Corrective Action: Grant Principal Investigators and Grant Accountant – Charme Benson Anticipated Completion Date: June 30, 2025 Corrective Action Plan: All expenses must be supported by documentation and comply with Generally Accepted Accounting Princ...

Finding 2024-007 Personnel Responsible for Corrective Action: Grant Principal Investigators and Grant Accountant – Charme Benson Anticipated Completion Date: June 30, 2025 Corrective Action Plan: All expenses must be supported by documentation and comply with Generally Accepted Accounting Principles (GAAP) standards. A pre-review checklist will be required for all charges against FIPSE grants. Prepaid items must be recorded in the prepaid ledger and amortized appropriately. Documentation will be retained in alignment with the University Record Retention policy. Management will implement a formal review and approval process to ensure that all allowable costs are verified for compliance with applicable regulations and approved by designated personnel prior to reimbursement or payment.

View Audit 359750 Questioned Costs: $1

Finding 566862 (2024-005)

Material Weakness 2024

Harris-Stowe State University

MO

Cash Management

Finding 2024-005 Personnel Responsible for Corrective Action: Grant Accountant – Charme Benson and Comptroller – Steve Wille Anticipated Completion Date: June 30, 2025 Corrective Action Plan: The University will enforce a review system for all federal drawdown requests. The Grant Accountant, Pr...

Finding 2024-005 Personnel Responsible for Corrective Action: Grant Accountant – Charme Benson and Comptroller – Steve Wille Anticipated Completion Date: June 30, 2025 Corrective Action Plan: The University will enforce a review system for all federal drawdown requests. The Grant Accountant, Principal Investigator, and Comptroller will sign and date the drawdown documentation prior to submission. Review checklists will be used to validate expenditures against the general ledger support. Drawdowns are scheduled to be completed by the 15th of each month.

View Audit 359750

Finding 566857 (2024-006)

Significant Deficiency 2024

Harris-Stowe State University

MO

Allowable Costs / Cost Principles Subrecipient Monitoring Cash Management

Finding 2024-006 Personnel Responsible for Corrective Action: Director of Sponsored Programs- Eva Kain, Director of Title III – Dr. Neidra Butler and Grant Accountant – Charme Benson Anticipated Completion Date: June 30, 2025 Corrective Action Plan: Payroll charges to federal programs must mat...

Finding 2024-006 Personnel Responsible for Corrective Action: Director of Sponsored Programs- Eva Kain, Director of Title III – Dr. Neidra Butler and Grant Accountant – Charme Benson Anticipated Completion Date: June 30, 2025 Corrective Action Plan: Payroll charges to federal programs must match certified time and effort documentation. The Director of Sponsored Programs, the Director of Title III, and the Grant Accountant will jointly review allocations before payrolls are processed. Monthly reports will be generated for review by the Grant Accountant, and discrepancies must be corrected within 30 days. Management will implement a formal review and approval process to ensure that all allowable costs are verified for compliance with applicable regulations and approved by designated personnel prior to reimbursement or payment.

View Audit 359750

Finding 566850 (2024-008)

Material Weakness 2024

Harris-Stowe State University

MO

Subrecipient Monitoring Special Tests & Provisions Material Weakness

Finding 2024-008 Personnel Responsible for Corrective Action: Chief Information Officer - Vacant Anticipated Completion Date: August 31, 2025 Corrective Action Plan: Harris-Stowe State University acknowledges the audit finding regarding noncompliance with the Gramm-Leach-Bliley Act (GLBA) and t...

Finding 2024-008 Personnel Responsible for Corrective Action: Chief Information Officer - Vacant Anticipated Completion Date: August 31, 2025 Corrective Action Plan: Harris-Stowe State University acknowledges the audit finding regarding noncompliance with the Gramm-Leach-Bliley Act (GLBA) and the FTC Safeguards Rule. In response, the University has collaborated with Omega Technical Solutions and ileap Group to execute a comprehensive cybersecurity compliance and modernization initiative. As of the audit period close, over 90% of related deficiencies have been remediated. Specific corrective actions taken or underway include: 1. Written Information Security Program (WISP): A formal WISP has been developed and implemented. It outlines oversight structures, risk management strategies, testing protocols, and required safeguards in alignment with 16 CFR 314.4. 2. Risk Assessment: A comprehensive risk scorecard was created. All Active Directory accounts were reviewed and flagged for deactivation or role reassignment as appropriate. 3. Access and Encryption Controls: Encryption is now deployed across all active endpoints. Logical access control and encryption policies have been adopted and published. Multi-factor authentication (MFA) is enforced for all systems handling student data. 4. Account Management and Role-Based Access: RBAC policies have been established and account provisioning is now formally documented and managed. 5. Retention, Change Management, and Training: A written data retention policy and formal change management procedures are now in place. An onboarding cybersecurity training program has been developed, with full implementation scheduled by August 31, 2025. 6. Legacy Server Risk Mitigation: One legacy Microsoft 2008 server has failed and is decommissioned. The remaining server is isolated, monitored with NIST- and Microsoft Sentinel-aligned tools, and pending full replacement as part of the upcoming infrastructure upgrade. 7. Ongoing Monitoring and Vendor Oversight: TCPM-aligned monitoring practices and vendor oversight protocols are now active and included in the WISP framework. The University’s IT Security SharePoint site houses all related documentation and is structured to support transparency, audit readiness, and continued compliance oversight.

View Audit 359750

Finding 566849 (2024-001)

Significant Deficiency 2024

Pacific Northwest Research Institute

WA

Subrecipient Monitoring Cash Management Allowable Costs / Cost Principles § 200.305

Finding Number 2024-001 Contact Person(s): Dionne Gordon dgordon@pnri.org Explanation and specific reasons for disagreement with the audit finding or that corrective action is not required (if applicable): Although the findings consisted primarily of a small number of late payments that were either ...

Finding Number 2024-001 Contact Person(s): Dionne Gordon dgordon@pnri.org Explanation and specific reasons for disagreement with the audit finding or that corrective action is not required (if applicable): Although the findings consisted primarily of a small number of late payments that were either 1 day late or late as a result of a poorly timed holiday, we fully acknowledge the accuracy of the finding and have added an additional control to account for the impact of weekends and holidays on our AP payment runs. Corrective action planned: Internal control established in AP department to keep track of sub recipients’ request reimbursement to ensure payments are disbursed within 30 calendar days after receipt of request. Anticipated completion date: March 31st 2025

View Audit 359747

Finding 566767 (2024-002)

None 2024

Battelle Memorial Institute

OH

Subrecipient Monitoring Equipment & Real Property Management § 200.508

Reference: Finding 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Contact: Erica Classing, C...

Reference: Finding 2024-002 Access Restricted to Documentation for Various Compliance Requirements – Research & Development Cluster; Noncompliance – Period of Performance, Procurement (Micro Purchasing), Subrecipient Monitoring, and Equipment and Real Property Management Contact: Erica Classing, Controller; classinge@battelle.org; 614-424-3372 Views of Responsible Officials: Battelle acknowledges this finding is the result of access restrictions to classified contract documents imposed by federal agencies that are beyond Battelle’s control. Battelle does not have the authority to grant auditor access to classified programs without the proper security clearance and program permissions, rather this authority resides with the federal awarding agency, in accordance with applicable federal security regulations. These restrictions prohibited access to classified contracts for required audit procedures in those areas noted in Finding 2024-002. Classified contracts are a small subset (10%) of Battelle’s total reportable expenditures. Battelle provided all unclassified documentation required to support transactions selected for testing. In addition, Battelle provided all documentation necessary to audit compliance with requirements on all non-classified contracts selected. Management upholds high standards of compliance and transparency and continues to support audit processes to the fullest extent possible. Battelle agrees to explore options to satisfy audit requirements while maintaining compliance with classified contract security regulations. Corrective Action Plan: Summary of finding: During compliance testing of period of performance, procurement (micro purchasing), subrecipient monitoring, and equipment and real property management, access to classified contracts was restricted. The auditor was unable to view federal award documents to confirm the following information: • Period of performance (5 of 50 selections) - unable to confirm the authorized project period • Procurement (micro purchasing) (2 of 40 selections) - unable to review applicable requirement relating to consent to subcontract • Subrecipient monitoring (2 out of 40 selections) – unable to inspect subaward information and applicable terms • Equipment and real property management (3 out of 50 selections) – unable to obtain proof of active use and safeguard of the classified equipment and validate whether the equipment disposal was handled properly in accordance with the contractual terms and conditions. Root cause: Access to classified contracts is subject to confidentiality requirements mandated by external regulators, requiring appropriate security clearance levels and verified need-to-know status. If the classified contract is a special access program, obtaining program-specific approvals from the awarding agency in addition to possessing the appropriate security clearance and need to know is required. There is no guarantee that the federal awarding agency will ultimately grant cleared auditors access to the classified contract. Corrective action: Battelle is taking the following steps to address the finding: • Internal Review: We conducted an internal review of the areas affected by the scope limitation to validate each selection complied with the applicable contractual and regulatory requirements. This action was completed by December 19, 2024 and did not identify any instance of non-compliance with applicable rules, regulations, or contractual requirements. • We have existing monitoring mechanisms in place to ensure compliance in the areas affected by the scope limitation. • Early coordination with external auditor: We are collaborating with our external audit team to identify any classified contract audit selections earlier in the annual audit process. A proactive approach will allow Battelle extra time to engage clients for required approvals to either gain access to the classified information or obtain appropriate alternative audit evidence. In addition, any other related steps that can be completed in advance such as verifying auditor clearance types and levels will be performed early to help mitigate any delays. This corrective action requires the audit firm to provide auditors with the appropriate security clearances. • Engagement with regulatory agencies: We are in dialogue with impacted federal awarding agencies to explore options to provide necessary audit evidence. • Enhanced documentation: We are enhancing our audit support procedures to provide guidelines on how, within the bounds of regulatory restrictions, we can provide access to audit evidence for future audits. Overall Anticipated Implementation Date: December 31, 2025

View Audit 359740

Finding 566118 (2024-001)

None 2024

Battelle Memorial Institute

OH

Special Tests & Provisions Allowable Costs / Cost Principles Reporting § 200.508

Reference: Finding 2024-001 Qualified Auditor’s Opinion for Allowable Costs and Activities Allowed and Unallowed and Special Tests and Provisions for Research & Development Cluster Due to Material Scope Limitations Contact: Erica Classing, Controller; classinge@battelle.org; 614-424-3372 Views of Re...

Reference: Finding 2024-001 Qualified Auditor’s Opinion for Allowable Costs and Activities Allowed and Unallowed and Special Tests and Provisions for Research & Development Cluster Due to Material Scope Limitations Contact: Erica Classing, Controller; classinge@battelle.org; 614-424-3372 Views of Responsible Officials: Battelle acknowledges the scope limitation is the result of access restrictions to classified contract documents imposed by federal agencies that are beyond Battelle’s control. Battelle does not have the authority to grant auditor access to classified programs without the proper security clearance and program permissions, rather this authority resides with the federal awarding agency, in accordance with applicable federal security regulations. These restrictions prohibited access to classified contracts for required audit procedures in those areas noted in Finding 2024-001. This limitation was only on classified contracts which is a small subset (10%) of Battelle’s total reportable expenditures. Battelle provided all unclassified documentation required to support transactions selected for testing. In addition, Battelle provided all documentation necessary to audit compliance with requirements on all non-classified contracts selected. Management upholds high standards of compliance and transparency and continues to support audit processes to the fullest extent possible. Battelle agrees to explore options to satisfy audit requirements while maintaining compliance with classified contract security regulations. Corrective Action Plan: Summary of finding: During testing of allowable costs and special tests and provisions, access to classified contracts was restricted. The auditor was unable to view federal award documents to determine allowability terms and conditions, security clearance requirements, or other special provisions for sample selections of classified contracts. Consequently, this restriction on access to the source contract document resulted in a material scope limitation for these testing areas. Root cause: Access to classified contracts is subject to confidentiality requirements mandated by external regulators, requiring appropriate security clearance levels and verified need-to-know status. If the classified contract is a special access program, obtaining program-specific approvals from the awarding agency in addition to possessing the appropriate security clearance and need to know is required. There is no guarantee that the federal awarding agency will ultimately grant cleared auditors access to the classified contract. Corrective action: Battelle is taking the following steps to address the finding: • Internal Review: We conducted an internal review of the areas affected by the scope limitation to validate each selection complied with the applicable contractual and regulatory requirements. This action was completed by December 19, 2024 and did not identify any instance of non-compliance with applicable rules, regulations, or contractual requirements. • We have existing monitoring mechanisms in place to ensure compliance in the areas affected by the scope limitation. • Early coordination with external auditor: We are collaborating with our external audit team to identify any classified contract audit selections earlier in the annual audit process. A proactive approach will allow Battelle extra time to engage clients for required approvals to either gain access to the classified information or obtain appropriate alternative audit evidence. In addition, any other related steps that can be completed in advance such as verifying auditor clearance types and levels will be performed early to help mitigate any delays. This corrective action requires the audit firm to provide auditors with the appropriate security clearances. • Engagement with regulatory agencies: We are in dialogue with impacted federal awarding agencies to explore options to provide necessary audit evidence. • Enhanced documentation: We are enhancing our audit support procedures to provide guidelines on how, within the bounds of regulatory restrictions, we can provide access to audit evidence for future audits. Overall Anticipated Implementation Date: December 31, 2025

View Audit 359740

Finding 566117 (2024-002)

Significant Deficiency 2024

Central Rivers Area Education Agency

IL

Subrecipient Monitoring Internal Control / Segregation of Duties Significant Deficiency

Management will work to implement controls that will ensure subrecipient monitoring requirements are met.

View Audit 359722

Finding 566114 (2024-001)

Material Weakness 2024

Town of Parker

CO

Procurement, Suspension & Debarment § 200.214

Condition: The Town could not provide evidence that it performed a check to verify its contractors were not suspended or debarred. Planned Corrective Action: 1. Policy Update: The Town will verify that its procurement policies and procedures to explicitly require verification of all vendors and su...

Condition: The Town could not provide evidence that it performed a check to verify its contractors were not suspended or debarred. Planned Corrective Action: 1. Policy Update: The Town will verify that its procurement policies and procedures to explicitly require verification of all vendors and subrecipients against the System for Award Management (SAM) at https://sam.gov prior to award of any federal contract or subaward is being followed. 2. Training: Staff responsible for procurement and grant administration will be trained on: The requirements of 2 CFR 200.214 and 2 CFR Part 180. How to use SAM.gov to verify suspension and debarment status. 3. Documentation Procedures: The Finance Department will implement a checklist that includes required documentation of SAM verification for every covered transaction using federal funds. 4. Monitoring and Review: The Grants Administrator will conduct periodic reviews of federal purchases to ensure compliance with suspension and debarment requirements. Contact person responsible for corrective action: Chris Fiandaca, Finance Director – Town of Parker Anticipated Completion Date: August 1, 2025

View Audit 359714

Finding 566113 (2024-001)

None 2024

Fairmont Housing Authority

NC

Questioned Costs HUD Housing Programs

The Authority agrees with the finding. For the file in question, a correction was made with an effective date back to September 1, 2024.

View Audit 359708 Questioned Costs: $1

Finding 566112 (2024-005)

Material Weakness 2024

Housing Authority of the City of Alliance, Nebraska

NE

HUD Housing Programs Material Weakness Reporting

The Alliance Housing Authority agrees with finding. Because of the transfer of the Rosewood Estates property, the financials were not available to the fee accountant in time to submit with the AHA REAC submission. The AHA understands that the submission is due within 60 days after the FYE and also ...

The Alliance Housing Authority agrees with finding. Because of the transfer of the Rosewood Estates property, the financials were not available to the fee accountant in time to submit with the AHA REAC submission. The AHA understands that the submission is due within 60 days after the FYE and also understands there is a 15-day grace period after the 60 days in order to submit. Rather than submitting late the REAC submission was submitted within this time frame without the Rosewood information. The AHA is now forwarding Rosewood information from the management company to the fee accountant monthly and this should remedy this finding in order to properly submit for the 2025 fiscal year.

View Audit 359703

Finding 566044 (2024-003)

Significant Deficiency 2024

Global Communities

MD

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting

Views of Responsible Officials and Planned Corrective Action: Global Communities experienced staff turnover in the positions responsible for FFATA reporting. Management will ensure those staff now responsible for maintaining compliance with FFATA reporting requirements have received adequate trainin...

Views of Responsible Officials and Planned Corrective Action: Global Communities experienced staff turnover in the positions responsible for FFATA reporting. Management will ensure those staff now responsible for maintaining compliance with FFATA reporting requirements have received adequate training and that supporting documentation of the review and approval of FFATA reports prior to submission are retained in our files.

View Audit 359700

Finding 566043 (2024-002)

Significant Deficiency 2024

Global Communities

MD

Allowable Costs / Cost Principles Procurement, Suspension & Debarment Subrecipient Monitoring

Views of Responsible Officials and Planned Corrective Action: Global Communities policies and procedures did detect these instances of fraud, management of Global Communities took appropriate action ensuring that no unallowable costs were charged to Federal funds. Global Communities will continue th...

Views of Responsible Officials and Planned Corrective Action: Global Communities policies and procedures did detect these instances of fraud, management of Global Communities took appropriate action ensuring that no unallowable costs were charged to Federal funds. Global Communities will continue their due diligence with respect to any items that are considered fraudulent in nature. Any high-risk areas are carefully monitored, additional training and/or resources are provided to ensure that internal controls are functioning as designed to prevent occurrences of misappropriation of assets and procurement fraud.

View Audit 359700

Finding 566042 (2024-001)

Material Weakness 2024

Southern Nevada Regional Housing Authority

NV

Questioned Costs HUD Housing Programs Subrecipient Monitoring

Finding 2024- 001: Housing Choice Voucher Tenant Files - Eligibility- Internal Control over Tenant Files - Noncompliance and Material Weakness Corrective Action Plan: Training: To reinforce compliance and ensure consistent adherence to policies a specialized team including a Compliance & Training A...

Finding 2024- 001: Housing Choice Voucher Tenant Files - Eligibility- Internal Control over Tenant Files - Noncompliance and Material Weakness Corrective Action Plan: Training: To reinforce compliance and ensure consistent adherence to policies a specialized team including a Compliance & Training Administrator, a Trainer, and two Senior Occupancy Specialists-has been established to oversee all Housing Choice Voucher (HCV) program training and compliance. This team is responsible for: ■ New hire training to ensure foundational competency. • Refresher trainings to address knowledge gaps and reinforce standards. • Policy & procedure update trainings to keep staff informed of changes. Quality Control: We conduct 100% quality control on all new hires', completed action files and 100% quality control on all contract files. Twenty-five percent (25%) of all Non-provisional employees work product is quality controlled by the compliance team. Department Structure: The entire leadership team completed Nan McKay's HOTMA training to ensure full alignment with the latest Housing Opportunity Through Modernization Act {HOTMA) requirements. This top-down approach guarantees that policy Interpretations and training materials are consistent and up to date. To ensure all required documents are properly retained and accessible, the agency has expedited the transition to a fully digital file system. This will Include standardized naming conventions, centralized storage with access controls, and a documented retention protocol to prevent future discrepancies. Additionally, any staff that falls below the 80 % success rate will be required to actively engage in all mandated trainings and utilize the compliance team as a resource for clarification. Furthermore, staff requiring further reinforcement will be promptly addressed through one-on one coaching or additional training sessions with their immediate supervisor. Anticipated Completion Date: The current staff is attending monthly trainings on the Administrative Plan, best practices and HOTMA policy changes. We anticipate completion of the plan by 12/31/2025. Person Responsible: Ms. Rhonda Jackson, Housing Program Manager II, Ms. Malandria Watson, Housing Program Manager I, -and Ebony Bell, Compliance and Training Administrator will be responsible for reviewing the Quality Control Report and error ratios monthly.

View Audit 359697 Questioned Costs: $1

Finding 566039 (2024-002)

Material Weakness 2024

County of Caldwell

TX

An action plan is for the County Auditor’s office to continue scheduling the quarterly assessments and reconciliations. The County Auditor’s office addressed taking several liabilities to Commissioner’s Court for disbursement after year end. The County Auditor’s office will review the entries m...

An action plan is for the County Auditor’s office to continue scheduling the quarterly assessments and reconciliations. The County Auditor’s office addressed taking several liabilities to Commissioner’s Court for disbursement after year end. The County Auditor’s office will review the entries made during the audit and begin making necessary end of year accruals for accounts payable, other liabilities, and revenues/receivables.

View Audit 359690

Corrective Action Plans

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