Corrective Action Plans

Management is aware of the finding and has concluded that it is not economically feasible to correct this finding. Management will rely on oversight by the Mayor and City Council to monitor this condition.

View Audit 397558

Finding 1205808 (2024-001)

Material Weakness 2024

City of Tower, Minnesota

MN

Internal Control / Segregation of Duties

For now, the City accepts the degree of risk associated with this condition and thoroughly reviews a draft of the financial statements, footnote disclosures, and supplementary information prior to issuance. Management will engage the audit firm to prepare drafts of its annual financial statements an...

For now, the City accepts the degree of risk associated with this condition and thoroughly reviews a draft of the financial statements, footnote disclosures, and supplementary information prior to issuance. Management will engage the audit firm to prepare drafts of its annual financial statements and related footnote disclosures in accordance with the regulatory basis of accounting.

View Audit 397558

Finding 1205800 (2024-001)

Material Weakness 2024

Town of Akron

CO

Material Weakness Internal Control / Segregation of Duties

The Town has implemented a process whereas the Town Manager and Board of Trustees review all federal or state grant agreements to verify whether the grant agreement outlines a CFDA number in determining whether the funds are related to federal awards.

View Audit 397536

Finding 1205797 (2024-017)

Material Weakness 2024

City of Mission

TX

Cash Management Reporting Significant Deficiency

The City will implement formal review and approval process for reimbursement requests within grant management policy; and require documentation (signatures/dates) to evidence compliance. Responsible Officials: Michael Elizalde, Grants & Strategic Initiatives Director / Vidal Roman, Finance Director ...

The City will implement formal review and approval process for reimbursement requests within grant management policy; and require documentation (signatures/dates) to evidence compliance. Responsible Officials: Michael Elizalde, Grants & Strategic Initiatives Director / Vidal Roman, Finance Director Timeline to Complete: Estimated June 2026

View Audit 397522

Finding 1205796 (2024-016)

Material Weakness 2024

City of Mission

TX

Procurement, Suspension & Debarment

The City will integrate suspension and debarment verification into purchasing workflow; require verification prior to purchase order approval; and update procurement policy to clearly define compliance requirements and documentation standards. Responsible Officials: Michael Elizalde, Grants & Strate...

The City will integrate suspension and debarment verification into purchasing workflow; require verification prior to purchase order approval; and update procurement policy to clearly define compliance requirements and documentation standards. Responsible Officials: Michael Elizalde, Grants & Strategic Initiatives Director / Crissy Cantu, Purchasing Manager Timeline to Complete: Estimated June 2026.

View Audit 397522

Finding 1205794 (2024-019)

Material Weakness 2024

City of Mission

TX

Equipment & Real Property Management Procurement, Suspension & Debarment Significant Deficiency

The City will incorporate verification of grant-funded assets into year-end closing process; require asset reconciliation between Finance Department, Grants Department, and Funding Agency asset records (if provided); and maintain item-level tracking of grant-funded assets. Responsible Officials: Mic...

The City will incorporate verification of grant-funded assets into year-end closing process; require asset reconciliation between Finance Department, Grants Department, and Funding Agency asset records (if provided); and maintain item-level tracking of grant-funded assets. Responsible Officials: Michael Elizalde, Grants & Strategic Initiatives Director / Vidal Roman Finance Director Timeline to Complete: Estimated December 2026

View Audit 397522

Finding 1205793 (2024-018)

Material Weakness 2024

City of Mission

TX

Eligibility Reporting Significant Deficiency

The City will establish centralized grant deadline calendar and grant compliance checklist for all programs; assign all grant monitoring responsibility to Grants Department; and incorporate compliance requirements into formal grant management policy. Responsible Officials: Michael Elizalde, Grants &...

The City will establish centralized grant deadline calendar and grant compliance checklist for all programs; assign all grant monitoring responsibility to Grants Department; and incorporate compliance requirements into formal grant management policy. Responsible Officials: Michael Elizalde, Grants & Strategic Initiatives Director Timeline to Complete: Estimated June 2026.

View Audit 397522

Finding 1205774 (2024-003)

Material Weakness 2024

City of Chickasha, Oklahoma

OK

Procurement, Suspension & Debarment Eligibility Reporting § 200.512

Views of Responsive Officials of Auditee: Management recognizes that the City’s audits have not been completed within the required statutory deadlines in recent years, including the reporting delay noted in this finding. These delays were primarily the result of turnover and transition in key financ...

Views of Responsive Officials of Auditee: Management recognizes that the City’s audits have not been completed within the required statutory deadlines in recent years, including the reporting delay noted in this finding. These delays were primarily the result of turnover and transition in key financial staff positions, which impacted continuity and the timely completion of audit-related activities. At the same time, management would like to highlight the significant progress that has been made in addressing this issue. Over the past six months, the City has successfully completed two fiscal year audits, representing meaningful advancement toward eliminating the audit backlog. Management is committed to continuing this progress and has established a plan to return to full compliance with reporting deadlines. The City anticipates being fully current beginning with the FY-2027 audit cycle and will continue implementing process improvements and ensuring staffing stability to support timely audit completion. Management understands the importance of timely reporting, particularly as it relates to maintaining eligibility for federal funding and will prioritize adherence to all applicable deadlines moving forward.

View Audit 397519

Finding 1205772 (2024-004)

Material Weakness 2024

Midwest Organic Association Inc

WI

Reporting

Agency: U.S. Department of Agriculture Responsible Person, Title: Cori Skolaski, ED Completion date: 2026 Agency Response: Concur Corrective Action Plan: The Association will file reports timely for the year ended December 31, 2025 and any future years.

View Audit 397509

Finding 1205763 (2024-002)

Material Weakness 2024

Missoula County

MT

Reporting

Corrective Action Plan In the audit schedule of findings for the year ended June 30, 2024, the auditors identified the following item in the financial statements. The County’s corrective action plan for this item is addressed below. Finding 2024-001 – Internal Control Over Financial Reporting and Ac...

Corrective Action Plan In the audit schedule of findings for the year ended June 30, 2024, the auditors identified the following item in the financial statements. The County’s corrective action plan for this item is addressed below. Finding 2024-001 – Internal Control Over Financial Reporting and Account Adjustments including the Schedule of Expenditures of Federal Awards Missoula County will begin with FY25 year-end financial reporting to provide additional training to all staff related to Financial Statement reporting. Due to staffing issues, an accounting firm will continue to support Missoula County staff in meeting deadlines with accurate information. A thorough review of all practices, policies and procedures will continue over the next fiscal year to ensure key control activities are in place. Each staff person involved with Financial Reporting will be trained on the key control activities and their importance. This information has been used in implementing a new Financial Software application which allows for business process workflows to aid departments in completing financial transactions accurately. The business process workflows include appropriate internal controls and review steps to ensure accuracy of entries. In addition, a new process for tracking monthly, quarterly and year end adjustments will be implemented. This process includes a second individual to review the year end reports for completeness, adherence to GAAP and monitoring of information reported on the Schedule of Expenditures of Federal Awards. Contact Person Responsible for Corrective Action: Michelle Denman, Financial Services Director Anticipated Completion Date of the Corrective Action: June 30, 2026 Finding 2024-002 – U.S. Department of Treasury COVID 19 Coronavirus State and Local Fiscal Recovery Funds (CSLFRF)-ALN 21.027 Reporting Missoula County has implemented a dual control process over CSLFRF reporting. Prior to quarterly reporting, the accountant in finance will review all expenditures related to obligated ARPA programs and reconcile this activity with each department expenditures. At the end of the quarter, after all months have closed and prior to Treasury reporting, an additional review of prior quarter activity will occur to ensure any reclassification journals have been noted to ensure prior quarter reports can be updated. Contact Person Responsible for Corrective Action: Michelle Denman, Financial Services Director Anticipated Completion Date of the Corrective Action: June 30, 2026

View Audit 397500

Finding 1205742 (2024-005)

Material Weakness 2024

Excelsior Springs Hospital

MO

Reporting Internal Control / Segregation of Duties

Corrective Action Plan: The Hospital is currently working on a plan to file all audit reports for the subsequent fiscal year ended September 30, 2025, before their required reporting due date of June 30, 2026.

View Audit 397466

Finding 1205735 (2024-001)

Material Weakness 2024

County of Coos, New Hampshire

NH

Allowable Costs / Cost Principles Reporting Matching / Level of Effort / Earmarking § 200.303

The county will implement a formal reconciliation process between grant tracking spreadsheets and the General Ledger. This reconciliation will be performed at minimum quarterly (when most grants are submitted) and shall include: 1. Documented Comparison: A side-by-side verification of total expendit...

The county will implement a formal reconciliation process between grant tracking spreadsheets and the General Ledger. This reconciliation will be performed at minimum quarterly (when most grants are submitted) and shall include: 1. Documented Comparison: A side-by-side verification of total expenditures and revenues per grant on amounts reported within the general ledger and amounts included on subsidiary tracking spreadsheets. This verification (crosswalk) should include specific general ledger account numbers used for tracking revenues and expenditures. 2. Supervisory Review: Reconciliations should be reviewed and signed off by a person independent of the spreadsheet preparation 3. System Integration: In January 2025, the County implemented a new ERP software system, which offers a grant module and features to identify grant items to help eliminate reliance on manual “shadow” systems or spreadsheets.

View Audit 397440

Finding 1205604 (2024-003)

Material Weakness 2024

Medina County

OH

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.318

Finding Number: 2024-003 Planned Corrective Action: Medina County acknowledges the deficiencies identified related to procurement documentation and suspension and debarment compliance under the Federal Transit Cluster. To address these issues, the County has implemented the following corrective acti...

Finding Number: 2024-003 Planned Corrective Action: Medina County acknowledges the deficiencies identified related to procurement documentation and suspension and debarment compliance under the Federal Transit Cluster. To address these issues, the County has implemented the following corrective actions: 1. Suspension and Debarment Verification Controls Effective immediately, prior to execution of any covered transaction funded in whole or in part with federal funds that is expected to equal or exceed $25,000, the Transit Department will verify vendor eligibility by performing a search of the System for Award Management (SAM.gov). Evidence of the SAM search, including the date performed and results, will be retained in the procurement file. In addition, all federally funded procurement contracts will include a standard suspension and debarment certification clause, or alternatively, a signed vendor certification will be obtained and retained when applicable. 2. Standardized Procurement Documentation The County will implement a standardized procurement checklist to be completed for all Transit procurements. This checklist will require documentation of: o The rationale for the method of procurement o The basis for contractor selection or rejection o The selection of contract type o The basis for contract price Completed checklists and supporting documentation will be maintained as part of the official procurement file in accordance with 2 CFR § 200.318 and the Medina County Transit Purchasing Policies and Procedures Manual. 3. Supervisory Review and Oversight The Transit Director, or designee, will perform a documented supervisory review of each procurement file prior to contract execution to ensure all required federal and County documentation is complete. No procurement will proceed without evidence of this review. 4. Training and Accountability Staff involved in Transit procurement activities will receive refresher training on federal procurement requirements, including suspension and debarment and procurement documentation standards. Compliance with these procedures will be monitored on an ongoing basis. Anticipated Completion Date: Implemented immediately and fully operational by March 31, 2026 Responsible Contact Person: Shannon Rine, Transit Director

View Audit 397291

Finding 1205410 (2024-007)

Material Weakness 2024

City of Dunkirk Housing Authority

NY

HUD Housing Programs

2023-007 Material Weakness: See finding 2024-007. Recommendation: We recommend that management of the Authority work with its newly retained fee accountant to better establish policies and procedures to ensure compliance with the grant requisition processes. Management’s response: The Authority has ...

2023-007 Material Weakness: See finding 2024-007. Recommendation: We recommend that management of the Authority work with its newly retained fee accountant to better establish policies and procedures to ensure compliance with the grant requisition processes. Management’s response: The Authority has had some staff turnover over the past several years. A new executive director and a new account clerk were both hired within the past several years. Management is evaluating its processes and procedures related to grant requisitions and is planning on implementing procedures to ensure grants are requisitioned in the future. Additionally, management plant to work with its newly hired fee accountant in the future to ensure grant funds are properly requisitioned.

View Audit 397084

Finding 1205409 (2024-005)

Material Weakness 2024

City of Dunkirk Housing Authority

NY

HUD Housing Programs Reporting

2023-005 Material Weakness: See finding 2024-005. Recommendation: We recommend that management of the Authority review the deadlines for FDS submission and the financial statement submission and work with the newly retained fee accountant to ensure that these deadlines are met in the future. Managem...

2023-005 Material Weakness: See finding 2024-005. Recommendation: We recommend that management of the Authority review the deadlines for FDS submission and the financial statement submission and work with the newly retained fee accountant to ensure that these deadlines are met in the future. Management’s response: The Authority has had some staff turnover over the past several years. A new executive director and a new account clerk were both hired within the past several years. Management was aware that its submissions were not timely. Management engaged the services of a fee-accountant subsequent to year-end who will assist with these submission going forward. In order to submit and ensure integrity of the unaudited financial statements, the bank accounts reconciliations needed to be completed and account analysis performed. Management will continue to prioritize and remediate outstanding compliance obligations and develop a compliance catch-up plan to ensure timely account reconciliation and account analysis in the future. The fee accountant was not re-engaged to perform bank reconciliations and account analysis for the year ended June 30, 2025 until after June 30, 2025 year end. As a result, management expects this to be a repeat finding in the June 30, 2025 audit.

View Audit 397084

Finding 1205407 (2024-006)

Material Weakness 2024

City of Dunkirk Housing Authority

NY

HUD Housing Programs

2023-006 Significant Deficiency: See finding 2024-006. Recommendation: We recommend that management of the Authority work with its newly retained fee accountant to prepare an operating budget by AMP location. Management’s response: The Authority has had some staff turnover over the past several year...

2023-006 Significant Deficiency: See finding 2024-006. Recommendation: We recommend that management of the Authority work with its newly retained fee accountant to prepare an operating budget by AMP location. Management’s response: The Authority has had some staff turnover over the past several years. A new executive director and a new account clerk were both hired within the past several years. Management was aware that its budget was not prepare by AMP location. Management engaged the services of a fee-accountant subsequent to year-end who will assist with the budgeting process in the future. The fee engaged was just recently re-engaged subsequent to June 30, 2025 year end. Management is aware that general best practice is to have a budget adopted by the board prior to the beginning of each fiscal year, however since the fee accountant was retained after the beginning of the 2025-2026 fiscal year, the 2025-2026 budget will not be prepared and adopted by the board on a timely basis.

View Audit 397084

Finding 1205405 (2024-004)

Material Weakness 2024

City of Dunkirk Housing Authority

NY

HUD Housing Programs

2024-004 Significant Deficiency: See finding 2024-004. Recommendation: We recommend that management of the Authority review its processes for closing out all fully-expended grants with HUD to ensure that, in the future, when grants are fully expended, the close-out process begins shortly thereafter....

2024-004 Significant Deficiency: See finding 2024-004. Recommendation: We recommend that management of the Authority review its processes for closing out all fully-expended grants with HUD to ensure that, in the future, when grants are fully expended, the close-out process begins shortly thereafter. Management’s response: The Authority has had some staff turnover over the past several years. A new executive director and a new account clerk were both hired within the past several years. Management was aware that several older grants were still shown as “open” and that the close-out procedures would have to be implemented at some point. Management is evaluating its processes and procedures related to closing out grants and is planning on implementing procedures to ensure grants are properly closed. Management plans on working with the newly hired fee accountant in the future to assist with the close out of grants that have been fully expended.

View Audit 397084

Finding 1205404 (2024-007)

Material Weakness 2024

University of Maryland Medical System Corporation

MD

Procurement, Suspension & Debarment

I. Procurement, Suspension and Debarment Evidence of controls over Suspension and Debarment Assistance Listing 21.027 – COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Federal Agencies: Department of Treasury Recommendation: The Corporation should retain documentation to support complet...

I. Procurement, Suspension and Debarment Evidence of controls over Suspension and Debarment Assistance Listing 21.027 – COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Federal Agencies: Department of Treasury Recommendation: The Corporation should retain documentation to support completeness and accuracy of the vendor list submitted for screening and the results obtained to support the screening process to ensure that no suspended or debarred vendors are utilized by the Corporation prior to entering into transactions. Explanation of disagreement with audit finding: There is no disagreement with the finding and recommendation. Action planned/taken in response to finding: The Corporation will formalize the system of record and end-to-end data flow, implement monthly reconciliations to confirm the completeness of the vendor population submitted for screening, and introduce data validation checks to ensure the accuracy of key vendor information. Supporting documentation will be centrally maintained to evidence control execution, and related policies and procedures will be updated with targeted training to promote consistent and sustainable application. Collectively, these enhancements are designed to mitigate the risk of engaging with suspended or debarred vendors. Anticipated Completion Date – June 30, 2026 Name(s) of the contact person(s) responsible for corrective action: Allison Dennison, Director, Compliance Operations, Allison.Dennison@umm.edu

View Audit 397083

Finding 1205402 (2024-006)

Material Weakness 2024

University of Maryland Medical System Corporation

MD

Procurement, Suspension & Debarment § 200.303 § 200.317 § 200.318 § 200.319 § 200.320

I. Procurement, Suspension and Debarment Incomplete Federal Requirements within Procurement Policies Assistance Listing 21.027 – COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Federal Agencies: Department of Treasury Recommendation: The Corporation should update its procurement policy ...

I. Procurement, Suspension and Debarment Incomplete Federal Requirements within Procurement Policies Assistance Listing 21.027 – COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Federal Agencies: Department of Treasury Recommendation: The Corporation should update its procurement policy to include the provisions required by the Uniform Guidance for purchasing goods and/or services with federal funds. Explanation of disagreement with audit finding: There is no disagreement with the finding and recommendation. Action planned/taken in response to finding: The Corporation established a centralized UMMS Office for Research and Sponsored Programs Administration (ORSPA) department in December 2025. The ORSPA, Corporate Financial Reporting and Legal drafted a procurement policy for federal awards. The policy is under review by other relevant stakeholders across UMMS. Anticipated Completion Date – August 31, 2026 Name(s) of the contact person(s) responsible for corrective action: Jeff Chadwick, Financial Reporting Director, jeff.chadwick@umm.edu

View Audit 397083

Finding 1205400 (2024-005)

Material Weakness 2024

University of Maryland Medical System Corporation

MD

Allowable Costs / Cost Principles

A. Activities Allowed or Unallowed; B. Allowable Costs/Cost Principles; L. Reporting Evidence of Review and Approval of the Reported Expenditures Assistance Listing 21.027 – COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Federal Agencies: Department of Treasury Recommendation: Manageme...

A. Activities Allowed or Unallowed; B. Allowable Costs/Cost Principles; L. Reporting Evidence of Review and Approval of the Reported Expenditures Assistance Listing 21.027 – COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Federal Agencies: Department of Treasury Recommendation: Management should reassess the design of its controls to ensure documentation is retained that evidences the review and approval of expenditures submitted to the Department of Treasury for reimbursement. Explanation of disagreement with audit finding: There is no disagreement with the finding and recommendation. Action planned/taken in response to finding: The Corporation went live on its new ERP system in April 2024. Since go-live, management has continued to optimize the system and find ways to strengthen our internal controls, including automating certain processes. Management will continue educating grant managers on capabilities within the system that can be utilized in the execution of review and approval of grant expenditures prior to timely submission to the relevant granting agencies for reimbursement. Centralized repositories have been set up for grant managers to extract specific monthly financial reports for use in the execution of their controls, as well as to retain their review and approval evidence. The Corporation established a centralized UMMS Office for Research and Sponsored Programs Administration (ORSPA) department in December 2025. ORSPA and Corporate Financial Reporting are developing standard operating procedures for the required review and reconciliation of grant expenditures per the accounting system to the financial submissions to the granting agency, including requirements for maintaining evidence of the review(s). Anticipated Completion Date – June 30, 2027 Name(s) of the contact person(s) responsible for corrective action: Jeff Chadwick, Financial Reporting Director, jeff.chadwick@umm.edu

View Audit 397083

Finding 1205398 (2024-004)

Material Weakness 2024

University of Maryland Medical System Corporation

MD

Reporting § 200.303 § 200.502 § 200.510

Other finding – SEFA Preparation Preparation of Schedule of Expenditures of Federal Awards Assistance Listing 21.027 – COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Federal Agencies: Department of Treasury Recommendation: The Corporation should update its policies and procedures and i...

Other finding – SEFA Preparation Preparation of Schedule of Expenditures of Federal Awards Assistance Listing 21.027 – COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Federal Agencies: Department of Treasury Recommendation: The Corporation should update its policies and procedures and internal controls to ensure accurate reporting of the Schedule as required by the Uniform Guidance. Explanation of disagreement with audit finding: There is no disagreement with the finding and recommendation. Action planned/taken in response to finding: The Corporation established a centralized UMMS Office for Research and Sponsored Programs Administration (ORSPA) department in December 2025. The ORSPA department created a standard pre-award approval process for all sponsored proposals prior to submission or award acceptance. The pre-award approval process applies to all federal, state, local, private and commercial funding opportunities across all UMMS entities and covers new, renewal, resubmission and supplemental proposals. The establishment of a central intake process through one department, for all grants across the Corporation, enhances the controls to ensure complete and accurate reporting of the Schedule as required by the Uniform Guidance. Additionally, ORSPA and Corporate Financial Reporting implemented the following controls to ensure all expenditures of federal awards are included on the Schedule. These controls include:  Reconciliation of the grants from the pre-award approval process to the grants tagged in the accounting system;  Use of a specific grant identifier within the accounting system to track expenditures and revenue recognition and tag grants as federal, state or private funded;  Comparison of grant expenditures per the accounting system to the grant agreement;  Comparison of grant expenditures per the accounting system to the financial reporting submissions made to the federal agencies;  Certification from legal entity Finance Executives that the draft Schedule is complete and accurate;  Comparison of the prior year Schedule to the current year Schedule with further investigation around changes in grants and agencies included, and significant changes in the expenditures. Anticipated Completion Date – June 30, 2026 Name(s) of the contact person(s) responsible for corrective action: Jeff Chadwick, Financial Reporting Director, jeff.chadwick@umm.edu

View Audit 397083

Corrective Action Plans

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