Corrective Action Plans

Finding 1172857 (2025-001)

Material Weakness 2025

MN

Student Financial Aid Reporting Significant Deficiency

Action taken in response to finding: The Department of Education implementation delays contributed to the untimely reporting. In the event the Department of Education implements future changes, the University will evaluate impacted processes at that time to determine appropriate action. In addition,...

Action taken in response to finding: The Department of Education implementation delays contributed to the untimely reporting. In the event the Department of Education implements future changes, the University will evaluate impacted processes at that time to determine appropriate action. In addition, the Office of Student Finance has evaluated potential process improvements and is actively working with IT support to help automate this financial aid verification process. The University has also increased the frequency of queries within the student records system to identify and update/resolve the records in a timelier manner. Name(s) of the contact person(s) responsible for corrective action: Nate Peterson, Executive Director, Office of Student Finance Planned completion date for corrective action plan: February 2026 If the Department of Education has questions regarding this plan, please call Nate Peterson at 612-624-9442.

View Audit 386232

Finding 1172856 (2025-002)

Material Weakness 2025

Snowy Mountain Development Corporation

MT

§ 200.501

Finding #2025-002 (Late Submission to the Federal Audit Clearinghouse) Responsible Party: Sara Hudson & JCCS PC Anticipated Completion Date: Septemer 1, 2025 (Implemented) Corrective Action Planned: Snowy Mountain Development Corporation has engaged a new audit firm and strengthened management overs...

Finding #2025-002 (Late Submission to the Federal Audit Clearinghouse) Responsible Party: Sara Hudson & JCCS PC Anticipated Completion Date: Septemer 1, 2025 (Implemented) Corrective Action Planned: Snowy Mountain Development Corporation has engaged a new audit firm and strengthened management oversight of the audit process and related submission deadlines. Management now actively monitors audit progress, coordinates required deliverables, and tracks federal filing deadlines to ensure timely submission to the Federal Audit Clearinghouse. These procedures have been implemented for the fiscal year ending June 30, 2026. Management anticipates that future Single Audit reports will be completed and submitted in compliance with applicable federal requirements.

View Audit 386230

Finding 1172855 (2025-001)

Material Weakness 2025

Snowy Mountain Development Corporation

MT

Reporting Matching / Level of Effort / Earmarking

FINDING #2025-001 (SF-425 Financial report – Late Submission) Responsible Party: Sara Hudson & Tonya Garber Anticipated Completion Date: November 1, 2025 (Implemented) Corrective Action Planned: Snowy Mountain Development Corporation has implemented updated procedures to ensure timely preparation, r...

FINDING #2025-001 (SF-425 Financial report – Late Submission) Responsible Party: Sara Hudson & Tonya Garber Anticipated Completion Date: November 1, 2025 (Implemented) Corrective Action Planned: Snowy Mountain Development Corporation has implemented updated procedures to ensure timely preparation, review, and submission of SF-425 Federal Financial Reports. Management reviewed current HRSA reporting requirements and established internal reporting deadlines that precede federal due dates. Reporting responsibilities and deadlines have been formally communicated to applicable staff, and management now monitors compliance with submission timelines to ensure reports are filed in accordance with federal requirements. This corrective action has been implemented for the current fiscal year ending June 30, 2026, and management anticipates compliance with SF-425 reporting requirements for future audits.

View Audit 386230

Finding 1172854 (2025-004)

Material Weakness 2025

California State University

CA

Reporting § 200.303 § 200.502

Compliance Requirement: Other – Inaccurate reporting of the Schedule of Expenditures of Federal Awards Campus: Sacramento, Sonoma Recommendation: KPMG recommends the University implement a system of internal control that is designed and operating effectively to ensure the SEFA is complete and accura...

Compliance Requirement: Other – Inaccurate reporting of the Schedule of Expenditures of Federal Awards Campus: Sacramento, Sonoma Recommendation: KPMG recommends the University implement a system of internal control that is designed and operating effectively to ensure the SEFA is complete and accurate. Corrective Action Plan: California State University, Sacramento The University concurs with the recommendation. The University will review and enhance its procedures and internal controls to ensure the SEFA is complete and accurate. Estimated Completion Date: July 2026 Contact person: California State University, Sacramento Tabitha Leeds Senior Director of Accounting Services (916) 278-4679 leeds@csus.edu Corrective Action Plan: Sonoma State University The University concurs with the recommendation. The University will review and enhance its procedures and internal controls to ensure the SEFA is complete and accurate. Estimated Completion Date: July 2026 Contact person: Sonoma State University David Crozier Associate Vice President, Financial Services (707) 664-3442 david.crozier@sonoma.edu

View Audit 386207

Finding 1172851 (2025-003)

Material Weakness 2025

California State University

CA

Procurement, Suspension & Debarment Subrecipient Monitoring Matching / Level of Effort / Earmarking § 200.214 § 200.303

Compliance Requirement: Procurement, Suspension and Debarment Campus: Sacramento Recommendation: KPMG recommends the University implement controls to verify the suspension and debarment status of all vendors prior to entering covered transactions, as well as maintaining evidence of the suspension an...

Compliance Requirement: Procurement, Suspension and Debarment Campus: Sacramento Recommendation: KPMG recommends the University implement controls to verify the suspension and debarment status of all vendors prior to entering covered transactions, as well as maintaining evidence of the suspension and debarment check in the procurement file of each vendor. Corrective Action Plan: California State University, Sacramento The University concurs with the recommendations. The University will review and enhance its procedures and internal controls to verify the suspension and debarment status of all vendors prior to entering covered transactions, as well as maintaining evidence of the suspension and debarment check in the procurement file of each vendor. Estimated Completion Date: July 2026 Contact person: California State University, Sacramento Tabitha Leeds Senior Director of Accounting Services (916) 278-4679 leeds@csus.edu

View Audit 386207

Finding 1172850 (2025-002)

Material Weakness 2025

California State University

CA

Student Financial Aid Matching / Level of Effort / Earmarking § 200.303

COMPLIANCE REQUIREMENT: Disbursements to or on Behalf of Students Campus: Fullerton, Los Angeles Recommendation: KPMG recommends the University provide proper training on the disbursement notification requirements and apply its existing policies and procedures. Corrective Action Plan: California Sta...

COMPLIANCE REQUIREMENT: Disbursements to or on Behalf of Students Campus: Fullerton, Los Angeles Recommendation: KPMG recommends the University provide proper training on the disbursement notification requirements and apply its existing policies and procedures. Corrective Action Plan: California State University, Fullerton The University concurs with the recommendation. The University will review and enhance its procedures to ensure timely disbursement notification. Estimated Completion Date: March 2026 Contact person: California State University, Fullerton Nick Valdivia Director of Financial Aid nvaldivia@fullerton.edu (657) 278-3064 Justin Chan Associate Director of Accounting Services & Financial Reporting juschan@fullerton.edu (657)278-8371 Corrective Action Plan: California State University, Los Angeles The University concurs with the recommendation. The University will review and enhance its procedures to ensure timely disbursement notification. Estimated Completion Date: June 2026 Contact person: California State University, Los Angeles Linda Lopez Director, Financial Aid and Scholarships (323) 343-3247 llopez148@calstatela.edu

View Audit 386207

Finding 1172848 (2025-001)

Material Weakness 2025

California State University

CA

Student Financial Aid Matching / Level of Effort / Earmarking § 200.303

COMPLIANCE REQUIREMENT: Enrollment Reporting Campuses: Sacramento, Los Angeles Recommendation: KPMG recommends the University provide proper training on the enrollment reporting procedures and apply its existing policies and procedures. Corrective Action Plan: California State University, Sacramento...

COMPLIANCE REQUIREMENT: Enrollment Reporting Campuses: Sacramento, Los Angeles Recommendation: KPMG recommends the University provide proper training on the enrollment reporting procedures and apply its existing policies and procedures. Corrective Action Plan: California State University, Sacramento The University concurs with the recommendation. The University will review and enhance its procedures to ensure timely and accurate reporting to NSLDS. Completion Date: December 2025 Contact person: California State University, Sacramento Tabitha Leeds Senior Director of Accounting Services (916) 278-4679 leeds@csus.edu Corrective Action Plan: California State University, Los Angeles The University concurs with the recommendation. The University will review and enhance its procedures to ensure timely and accurate reporting to NSLDS. Estimated Completion Date: June 2026 Contact person: California State University, Los Angeles Linda Lopez Director, Financial Aid and Scholarships (323) 343-3247 llopez148@calstatela.edu

View Audit 386207

Finding 1172846 (2025-001)

Material Weakness 2025

Stark County Community Unit School No. 100

IL

Internal Control / Segregation of Duties Cash Management Reporting § 200.303

Condition: The same individual is responsible for preparing and submitting monthly reimbursement claims for the Child Nutrition Program without an independent review or approval prior to submission. Plan: A second person (superintendent) compares the meal counts in the claim to the SDS daily meal co...

Condition: The same individual is responsible for preparing and submitting monthly reimbursement claims for the Child Nutrition Program without an independent review or approval prior to submission. Plan: A second person (superintendent) compares the meal counts in the claim to the SDS daily meal count reports, monthly participation summary, eligibility rosters (free, reduced, paid) and USDA reimbursement rates. The reviewer will then sign and date a reconciliation sheet before submission. Anticipated date of completion: June 30, 2026. Name of contact person: Brett Elliott, Superintendent. Management response: The corrective action plan was discussed with the employee responsible for filing the claim, the business manager, and the superintendent. After discussion, the plan was approved by the superintendent.

View Audit 386204

Finding 1172838 (2025-001)

Material Weakness 2025

Catholic Charities Community Services, Inc. and Subsidiaries

AZ

Material Weakness Reporting Internal Control / Segregation of Duties

Item: 2025-001 Assistance Listing Number: 64.024 Program: VA Homeless Providers Grant and Per Diem Program Federal Agency: U.S. Department of Veterans Affairs Pass-Through Agencies: n/a Contract/Pass-Through Grantor Identifying Number: CCAZ999-4582-649-TP-24 Award Year: October 2021 to September 202...

Item: 2025-001 Assistance Listing Number: 64.024 Program: VA Homeless Providers Grant and Per Diem Program Federal Agency: U.S. Department of Veterans Affairs Pass-Through Agencies: n/a Contract/Pass-Through Grantor Identifying Number: CCAZ999-4582-649-TP-24 Award Year: October 2021 to September 2023; October 2023 to September 2026 Compliance Requirement: Reporting Criteria: In accordance with the grant agreements, the Organization is required to submit per diem financial reports requesting payment based on the units of service provided multiplied by a per diem rate as specified in the grant agreement. Condition: In preparation of the per diem financial reports, the incorrect per diem rate was used to calculate the amount requested for payment for three reports. Phone Number: (602) 650-4852 Anticipated Completion Date: March 31, 2026 Views of Responsible Officials and Corrective Actions: The Organization has implement additional controls to ensure updates to the per diem rates are identified timely. The Organization will continue to ensure reports are reviewed and approved prior to submission to the granting agency. This review and approval will be clearly documented.

View Audit 386180

Finding 1172836 (2025-002)

Material Weakness 2025

Catholic Charities Community Services, Inc. and Subsidiaries

AZ

Material Weakness Reporting Internal Control / Segregation of Duties

Item: 2025-002 Assistance Listing Number: 93.558 Program: Temporary Assistance for Needy Families Federal Agency: U.S. Department of Health and Human Services Pass-Through Agencies: Arizona Department of Economic Security Contract/Pass-Through Grantor Identifying Number: CTR062282 Award Year: July 2...

Item: 2025-002 Assistance Listing Number: 93.558 Program: Temporary Assistance for Needy Families Federal Agency: U.S. Department of Health and Human Services Pass-Through Agencies: Arizona Department of Economic Security Contract/Pass-Through Grantor Identifying Number: CTR062282 Award Year: July 2024 to June 2025 Compliance Requirement: Reporting Criteria: In accordance with the grant agreements, the Organization is required to submit monthly performance reports. Condition: Of the 22 reports tested, 11 were not submitted timely. Phone Number: (602) 650-4852 Anticipated Completion Date: March 31, 2026 Views of Responsible Officials and Corrective Actions: The Organization has implemented additional controls to ensure reports are submitted timely. The Organization will continue to ensure reports are reviewed and approved prior to submission to the granting agency.

View Audit 386180

Finding 1172832 (2025-001)

Material Weakness 2025

City of Council Bluffs

IA

Subrecipient Monitoring Reporting Allowable Costs / Cost Principles

We have reviewed procedures and plan to make the necessary changes to improve reporting timeliness. Staff will update its internal policy to submit the FFATA within 30 days of execution of the CDBG annual budget, Annual Action Plan, and subaward agreements, along with any amendments to these agreeme...

We have reviewed procedures and plan to make the necessary changes to improve reporting timeliness. Staff will update its internal policy to submit the FFATA within 30 days of execution of the CDBG annual budget, Annual Action Plan, and subaward agreements, along with any amendments to these agreements. Contact Person, Title, Phone Number Christopher Gibbons, Interim Director of Community Development, (712) 890-5358 Anticipated Date of Completion January 30, 2026

View Audit 386178

Finding 1172831 (2025-002)

Material Weakness 2025

Michigan Women's Foundation D/b/a Michigan Women Forward

MI

Eligibility Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Condition The internal controls over compliance were not operating effectively as a loan was disbursed to a business which operates outside of the approved county listing set by the SBA. Corrective Action Plan Corrective Action Planned: The Foundation had 26 approved counties across the lower half o...

Condition The internal controls over compliance were not operating effectively as a loan was disbursed to a business which operates outside of the approved county listing set by the SBA. Corrective Action Plan Corrective Action Planned: The Foundation had 26 approved counties across the lower half of Michigan for businesses eligible to be funded by SBA loan capital. MWF assigned SBA funding to an applicant that was initially identified as being in an eligible county. However, by the time of the loan closing, the applicant had settled on a brick and mortar store located in a county that is not on MWF’s SBA approved list. MWF has created a procedure for loans assigned to SBA as the loan capital funding source to verify before closing that the county for the business is in an SBA approved county. The Foundation has also received approval from the SBA to fund loans for business in the previously unapproved county subsequent to year end. Name(s) of Contact Person(s) Responsible for Corrective Action: Tamara Jackson, the director of lending, will verify all loans assigned to SBA loan capital prior to closing the county of the business and confirm it is an eligible county for MWF Anticipated Completion Date: The procedure described above was created, MWF’s credit policy and MWF’s closing checklist reflect this procedure which was implemented in the first quarter of FY2026.

View Audit 386159

Finding 1172830 (2025-001)

Material Weakness 2025

Rural Health Corporation of Northeastern Pennsylvania

PA

Material Weakness Significant Deficiency

RHC of NEPA has taken significant steps to improve and rectify their sliding fee deficiency over its last 3 audits. RHC of NEPA has improved from 2 consecutive material weakness findings to having substantial improvement and reduced its status to a significant deficiency. It is important to note tha...

RHC of NEPA has taken significant steps to improve and rectify their sliding fee deficiency over its last 3 audits. RHC of NEPA has improved from 2 consecutive material weakness findings to having substantial improvement and reduced its status to a significant deficiency. It is important to note that 2 of the outstanding claims identified had timely sliding fee documents completed, however they were out of compliance due to human error of calculation of the sliding fee percentage. Education and internal audits which were implemented throughout the organization which have driven the marked improvement will continue to be disseminated throughout the organization. Clearly based on the improvement that has occurred, current processes and level of attention are the correct items to rectify and become fully compliant with sliding fee requirements. These policies will be the focus of additional training with a separate session being dedicated to the updated sliding fee implementation in February of 2026.

View Audit 386157

Finding 1172828 (2025-001)

Material Weakness 2025

Belvidere Cusd No. 100

IL

Internal Control / Segregation of Duties Cash Management Reporting § 200.303

Condition: The same individual is responsible for preparing and submitting monthly reimbursement claims for the Child Nutrition Program without an independent review or approval prior to submission. Plan: A second person (chief financial & operations officer) compares the meal counts in the claim to...

Condition: The same individual is responsible for preparing and submitting monthly reimbursement claims for the Child Nutrition Program without an independent review or approval prior to submission. Plan: A second person (chief financial & operations officer) compares the meal counts in the claim to the Skyward daily meal count reports, monthly participation summary, eligibility rosters (free, reduced, paid) and USDA reimbursement rates. The reviewer will then sign and date a reconciliation sheet before submission. Anticipated date of completion: December 7, 2025. Name of contact person: Cassandra Schug, Superintendent. Management response: The corrective action plan was discussed with the business services coordinator and the chief financial & operations officer. After discussion, the plan was approved.

View Audit 386144

Finding 1172805 (2025-001)

Material Weakness 2025

Catholic Charities USA

VA

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

Criteria: In accordance with §200.303(a), Internal Controls, a non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulation...

Criteria: In accordance with §200.303(a), Internal Controls, a non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. In accordance with §200.213 and §180.300, Suspension and Debarment, nonfederal entities cannot enter into awards, subawards, or contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in federal assistance programs or activities. Nonfederal entities must either check for exclusions in the System for Award Management (SAM); collect a certification from the entity, or add a clause or condition to the covered transaction with the entity prior to entering into a covered transaction with a non-federal entity. In addition, in accordance with §180.415(b), non-federal entities cannot renew or extend covered transactions (other than no-cost time extension) with any excluded person, or under which an excluded person is a principal, unless the non-federal entity obtains an exception under §180.135. Condition: During our review of procurement, suspension, and debarment compliance requirements for the selected vendor sample, we observed that while management conducted a suspension and debarment check prior to contracting with the vendor, documentary evidence of this check was not retained. Although management has maintained an ongoing working relationship with this vendor over several years and indicated that the required check was performed, they were unable to provide documentation confirming that the check was completed at the time the most recent contract was executed on April 1, 2025. Cause: The Organization’s current policies, procedures, and internal controls do not require the retention of documentation evidencing that suspension and debarment checks have been performed. Corrective Action: CCUSA Finance team will ensure that all contractors on federal grants certify that they are not suspended or debarred, and CCUSA Finance team will also verify that information on third-party and/or government websites. CCUSA will retain all documentation of the certification and verification. In addition, CCUSA will attend uniform guidance training either provided by an outside company, or by BDO. Anticipated Completion Date and Contact Details Anticipated Completion Date: March 31, 2026 Contact Person: Katie Spillane Title: Chief Financial Officer Phone Number: (703) 236 6250

View Audit 386137

Finding 1172804 (2025-001)

Material Weakness 2025

Housing Authority of Hopkinsville

KY

HUD Housing Programs Internal Control / Segregation of Duties

The non-compliance resulted primarily from operational and system limitations rather than the absence of policy or guidance. The PHA had inspection procedures and documentation expectations in place and communicated to inspection staff; however, the inspection software that we use, Tenmast, currentl...

The non-compliance resulted primarily from operational and system limitations rather than the absence of policy or guidance. The PHA had inspection procedures and documentation expectations in place and communicated to inspection staff; however, the inspection software that we use, Tenmast, currently does not adequately support printing, retention, tracking and follow-up of former HQS inspection documentation and present NSPIRE documentation, reinspection deadlines or enforcement actions. As HUD oversight expectations increased and NSPIRE requirements were implemented, reliance on manual tracking and workarounds created a risk of incomplete documentation and delayed follow-up. While inspections were conducted as required, system constraints limited the PHA's ability to consistently document failed items, record actual passing dates and initiate timely enforcement actions, including HAP abatement. To further strengthen compliance and address these risks, the PHA updated its Administrative Plan effective July 1, 2025, to more clearly define NSPIRE compliance standards, documentation requirements, reinspection timelines, enforcement procedures and abatement actions. STEPS TO IMPROVE: 1. Reinforce NSPIRE inspection procedures previously issued to inspectors, including documentation, notification, reinspection and enforcement requirements. 2. Implement refresher training for inspection staff to ensure consistent application of HUD and PHA NSPIRE policies, including life-threatening and non-life-threatening deficiencies. 3. Require retention of complete HUD-52580 inspection reports for all failed and passed inspections, including accurate documentation of deficiency correction dates. 4. 4. Strengthen review of inspection files to ensure timely follow-up, reinspection scheduling and enforcement actions by the Section 8 Director. 5. Transition inspection tracking and compliance enforcement from our current software company, Ten mast, to a new software company, Yardi, to improve system controls, documentation retention and monitoring capabilities. This implementation should occur in 2026. 6. Apply the updated Administrative Plan effective July 1, 2025, to ensure consistent enforcement of HAP abatement and contract termination requirements. Effective December 1, 2024, the PHA began utilizing NSPIRE to support a more modernized inspection system. Existing landlords were formally notified of the new inspection and enforcement requirements on September 1, 2024. The Section 8 Director will conduct periodic supervisory file reviews to verify that inspection notices, HUD- 52580 reports, reinspection documentation and enforcement actions are properly maintained and timely. The PHA is currently in the process of implementing Yardi as its primary inspection and case-management system. Once fully operational, Yardi will provide enhanced capabilities for tracking failed inspections, monitoring reinspection deadlines, documenting compliance and enforcing HAP abatement in accordance with HUD and NSPIRE requirements. Management will utilize system-generated reports and ongoing internal reviews to identify and promptly address compliance issues. The Section 8 Director acknowledges the deficiencies identified and is committed to strengthening NSPIRE enforcement through improved system controls, clarified policy, staff training and ongoing monitoring. These corrective actions are intended to ensure program integrity, protect tenant safety and maintain compliance with HUD regulations. Additional Remarks: Under our finding, the finding was reported for HOS Enforcement. Our agency changed to the NSPIRE Protocol for inspections as of 12/1/2024. Out of the 25 failed inspections sampled, 7 fell under the previous HQS protocol and the other 18, NSPIRE

View Audit 386135

Finding 1172803 (2025-001)

Material Weakness 2025

Esperanza United

MN

Procurement, Suspension & Debarment § 200.318

2025-001 Lack of Documentation for Procurement, Suspension, and Debarment Testing Federal Departments: Department of Health and Human Services, Administration for Children and Families Assistance Listing #: 93.496 Compliance and Internal Controls Significant Deficiency Category of Finding – Procurem...

2025-001 Lack of Documentation for Procurement, Suspension, and Debarment Testing Federal Departments: Department of Health and Human Services, Administration for Children and Families Assistance Listing #: 93.496 Compliance and Internal Controls Significant Deficiency Category of Finding – Procurement, Suspension and Debarment Name of contact person: Vivian Huelgo, President and CEO Corrective Action: Finance staff will be responsible for maintaining and safekeeping all procurement documentation for requisite amount of time in accessible location in an accounting folder explicitly marked on the Esperanza United secured drive for finance staff and executive team. Completion Date: January 1, 2026

View Audit 386132

Finding 1172802 (2025-004)

Material Weakness 2025

Independent School District #2909, Rock Ridge Public Schools

MN

Internal Control / Segregation of Duties Cash Management Reporting

Contact Person – Dr. Noel Schmidt, Superintendent Corrective Action Plan – The District will establish procedures to review meal reimbursement submissions. Completion Date – January 31, 2026

View Audit 386106

Finding 1172798 (2025-001)

Material Weakness 2025

MacOn County

NC

Eligibility

Name of Contact Person: Amy Mason, IMS III Corrective Action: Significant Deficiency, non-material non-compliance Eligibility Macon County has conducted policy training regarding "State Residency and County Transfers" for all Medicaid units. All caseworkers have received Medicaid policy documents, N...

Name of Contact Person: Amy Mason, IMS III Corrective Action: Significant Deficiency, non-material non-compliance Eligibility Macon County has conducted policy training regarding "State Residency and County Transfers" for all Medicaid units. All caseworkers have received Medicaid policy documents, NC Fast job aid procedures, NC Fast Learning Gateway PowerPoint presentations, steps for end dating evidence, and documentation templates. Each worker can access and review these resources at their convenience. All caseworkers are required to adhere to the guidelines and policies that have been provided to them. Medicaid Supervisors, Team Lead, and Trainer will persist in performing second-party reviews in accordance with NC State Team Lead, and Trainer will persist in performing second-party reviews in accordance with NC State guidelines. Proposed Completion Date:November 18, 2025

View Audit 386093

Finding 1172797 (2025-003)

Material Weakness 2025

Fredericksburg Independent School District

TX

Procurement, Suspension & Debarment § 200.318

Federal regulations required full and open competition in procurement, equitable distribution of micro-purchases, cost/price analysis for formal contract, and proper contract management (2 CFR 200.318-326). Micro-purchases were not equitably distributed, cost/price analyses were not conducted prior ...

Federal regulations required full and open competition in procurement, equitable distribution of micro-purchases, cost/price analysis for formal contract, and proper contract management (2 CFR 200.318-326). Micro-purchases were not equitably distributed, cost/price analyses were not conducted prior to formal contracts, and full and open competition was restricted by unreasonable requirements. Sealed bids were not properly opened or evaluated, and contract management was insufficient. Purchsing staff attended a training during the Summer of 2025 that covered cumulative spend tracking, appropriate procurement methods, and required documentation for the various procurement methods. All documentation, including analyses, quotes, and vendor selection rationale, are uploaded within the purchasing module to ensure appropriate supporting documentation is kept with the purchase. Documentation is reviewd by the purchasing staff at the time each purchase order is requested.

View Audit 386088

Finding 1172796 (2025-002)

Material Weakness 2025

Fredericksburg Independent School District

TX

Eligibility School Nutrition Programs

Federal regulations require that verification of applications be conducted by separate officials and that proper documentation and procedures are followed (7 CFR 245.6a). The same individual served as both the confirming and determining/reviewing official. The District did not maintain documentation...

Federal regulations require that verification of applications be conducted by separate officials and that proper documentation and procedures are followed (7 CFR 245.6a). The same individual served as both the confirming and determining/reviewing official. The District did not maintain documentation of confirmation reviews, and some applications were not verified correctly, resulting in incorrect eligibility determinations. The ensure adherence to the separation-of-duties requirement outlinked in 7 CFR 245.6a, the District has designated a separate confirmining official. The verification process will now follow a two-step reivew; the Child Nutrition Secretary will conduct the initial verification of selected applications, and the Child Nutrition Director will complete the independent confirmation review. This structure ensures that two distinct individuals verify the accuracy of eligibility determinations and that proper oversight is maintained. Both the Child Nutrition Secretary and the Child Nutrition Director attended formal verification training in September 2025. This training reinforces correct procedures and supports proper documentation of all confirmation reviews moving forward.

View Audit 386088

Finding 1172795 (2025-001)

Material Weakness 2025

Fredericksburg Independent School District

TX

School Nutrition Programs

Federal regulations require that eligibility determinations for free and reduced-priced meals be accurate and that benefit issurance documents are updated timely and accurately (7 CFR 245.6, 245.10). Several student applications were incorrectly approved. Additionally, benefit issuance documents wer...

Federal regulations require that eligibility determinations for free and reduced-priced meals be accurate and that benefit issurance documents are updated timely and accurately (7 CFR 245.6, 245.10). Several student applications were incorrectly approved. Additionally, benefit issuance documents were not updated in a timely manner for students newly eligible through Direct Certification. To ensure full compliance with 7 CFR 245.6 and 245.10, the Child Nutrition Director and Child Nutrition Secretary will jointly review each Direct Certification (DC) list to verify that all eligible students are accurately identified and that eligibility status in the point-of-sale (POS) system is update promptly. This dual-review process will service as a verificaiton measure to prevent omissions and ensure the benefit issuance document remains current and accurate. In August 2025, both the Child Nutrition Director and Secretary completed formal training on eligibility determination procedures. Moving forward, detailed notes- including dates and explanations of status changes- will be documented in each student's account to ensure clear tracking of all updates to support accurate recordkeeping for future reviews.

View Audit 386088

Finding 1172788 (2025-001)

Material Weakness 2025

Iowa Healthiest State Initiative

IA

Cash Management Allowable Costs / Cost Principles

Iowa Healthiest State Initiative respectfully submits the following corrective action plan for the year ended September 30, 2025. Audit period: October 1, 2024 – September 30, 2025 The finding from the schedule of findings and questioned costs is discussed below. The finding is numbered consistently...

Iowa Healthiest State Initiative respectfully submits the following corrective action plan for the year ended September 30, 2025. Audit period: October 1, 2024 – September 30, 2025 The finding from the schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. Finding – Federal Award Programs Audits United States Department of Agriculture Finding 2025-001: Cash Management Recommendation: BerganKDV recommends Management review compliance requirements for understanding and developing procedures to ensure adherence to cash management requirements. Action Taken: Management acknowledges the finding related to the timing of federal drawdowns and updated procedures to ensure that funds are only drawn after allowable expenses have been incurred. If the United States Department of Agriculture has questions regarding this plan, please contact Jami Haberl at (515) 650-6854. Sincerely, Jami Haberl, MPH, MHA Executive Director Iowa Healthiest State Initiative

View Audit 386085

Finding 1172786 (2025-002)

Material Weakness 2025

Mt. San Antonio Community College District

CA

Subrecipient Monitoring Student Financial Aid Significant Deficiency

Views of Responsible Officials and Corrective Action Plan During Fall 2024, the Financial Aid Office experienced the departure of two key senior staff members who were primarily responsible for Return to Title IV (R2T4) processing and the reversal of federal funds. As a result, new staff were tempor...

Views of Responsible Officials and Corrective Action Plan During Fall 2024, the Financial Aid Office experienced the departure of two key senior staff members who were primarily responsible for Return to Title IV (R2T4) processing and the reversal of federal funds. As a result, new staff were temporarily assigned to manage these responsibilities during the transition period, which contributed to delays in returning funds within the required regulatory timeframe. A comprehensive review of all R2T4 calculations completed during the 2024–2025 aid year determined that records processed prior to mid-November 2024 had over awarded funds returned within the applicable 45- and 30-day regulatory timeframes. This timeframe aligns with the period when the responsible staff members announced their retirements. To resolve this matter and prevent recurrence, the District has implemented the following corrective measures. Targeted R2T4 Training: Staff responsible for Return to Title IV (R2T4) processing and disbursement reversals are in the process of completing the National Association of Student Financial Aid Administrators (NASFAA) R2T4 credential training. This certification will ensure staff possess consistent, up-to-date knowledge of federal requirements around the R2T4 process to include the timelines required to return over-awarded funds to the department. Automated Monitoring Report: A recurring monitoring report has been established to identify students with pending Returns of Title IV (R2T4) funds. The report automatically flags cases exceeding 30 days and, for students who withdrew prior to the start of the term, those exceeding 20 days. Department managers will generate and review this report on a weekly basis to ensure timely compliance with federal return requirements. In instances where pending returns are identified as being past the alert threshold, Financial Aid management will promptly coordinate with Fiscal Services to expedite the return of funds and document resolution actions. Cross-Training for Continuity of Operations: Ongoing cross-training has been implemented among Financial Aid staff to ensure sufficient coverage during vacations, extended leaves, or unexpected absences. At least two designated staff members will be fully trained and authorized to perform R2T4 calculations and return processing to prevent delays in compliance during personnel transitions. These measures strengthen accountability, monitoring, and collaboration between the Financial Aid and Fiscal Services departments to ensure full compliance with federal cash management and return regulations.

View Audit 386075

Finding 1172779 (2025-001)

Material Weakness 2025

Mt. San Antonio Community College District

CA

Student Financial Aid

Views of Responsible Officials and Corrective Action Plan The discrepancies noted during the 2024–2025 Financial Aid Audit were found to be attributable to a separate system configuration issue, distinct from the discrepant records identified in the 2023–2024 annual audit, which involved incorrect r...

Views of Responsible Officials and Corrective Action Plan The discrepancies noted during the 2024–2025 Financial Aid Audit were found to be attributable to a separate system configuration issue, distinct from the discrepant records identified in the 2023–2024 annual audit, which involved incorrect reporting of effective enrollment status dates. To resolve this matter and prevent recurrence, the District has implemented the following corrective actions: 1. Root-Cause Analysis: Conducted a comprehensive review with IT, Admissions & Records, Financial Aid, and third-party consultants to isolate and correct the specific system errors. 2. Update Systems Settings: Updating systems settings to accurately select records for reporting along with the perspective effective date and accurately report the three-quarter time enrollment level. 3. Manual Verification: Financial Aid staff responsible for Return to Title IV (R2T4) processing will manually review all student enrollment records in NSLDS (approximately 2,400 annually) to ensure accuracy. 4. Ongoing Compliance Monitoring: Established quarterly joint compliance reviews with IT, Admissions and Financial Aid leadership to verify continued accuracy of NSC/NSLDS reporting and to ensure timely detection of anomalies.

View Audit 386075

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