Corrective Action Plans

Finding 1172470 (2025-005)

Material Weakness 2025

MT

Special Tests & Provisions Allowable Costs / Cost Principles Material Weakness

Department of Education, passed through the State of Montana Office of Public Instruction, Federal Financial Assistance Listing 84.010, federal award numbers S010A240026 and S010240026, grant period 7/1/2024 – 9/30/2026 Title I Grants to Local Education Agencies Special Tests and Provisions Finding ...

Department of Education, passed through the State of Montana Office of Public Instruction, Federal Financial Assistance Listing 84.010, federal award numbers S010A240026 and S010240026, grant period 7/1/2024 – 9/30/2026 Title I Grants to Local Education Agencies Special Tests and Provisions Finding Summary: During the auditor’s federal program testing of Title I, it was noted that several students were removed from the adjusted cohort for unallowable reasons. Corrective Action Plan: The District staff will follow the guidance in ESEA sections 1111(h)(1)(C)(iii)(II) and 8101(23), (25) (20 USC 6311(h)(1)(C)(iii)(II) and 7801(23), (25)), to ensure graduation rate data is reported correctly going forward. Responsible Individual: Laurie Kvamme, Chief Financial Officer Anticipated Completion Date: June 30, 2026

View Audit 385643

Finding 1172461 (2025-002)

Material Weakness 2025

Regional School Unit No. 18

ME

Cash Management Internal Control / Segregation of Duties

Management’s response/corrective action plan: Management concurs with the audit finding. During fiscal year 2024, the School Unit appropriately recorded the cost of a five-year software agreement as a prepaid expenditure. However, in fiscal year 2025, the entire amount was incorrectly recognized as ...

Management’s response/corrective action plan: Management concurs with the audit finding. During fiscal year 2024, the School Unit appropriately recorded the cost of a five-year software agreement as a prepaid expenditure. However, in fiscal year 2025, the entire amount was incorrectly recognized as a current-year expenditure and included in the calculation of grant reimbursements. To remedy this issue, management will enhance internal controls over prepaid expenditures charged to federal grants. Specifically, finance staff and the business manager, will review all prepaid items at year-end and during grant reimbursement preparation to ensure that expenditures are recognized in the proper fiscal period and in accordance with the underlying contract terms. A reconciliation between prepaid balances, contract terms, and reimbursement requests will be performed prior to federal grant submission. In addition, written procedures will be updated to clearly require verification that only allowable and incurred costs are included in reimbursement claims, and relevant staff will receive additional training on grant compliance requirements related to prepaid expenditures. Management believes these actions will prevent similar issues in the future.

View Audit 385625

Finding 1172460 (2025-001)

Material Weakness 2025

Regional School Unit No. 18

ME

Procurement, Suspension & Debarment

Management’s response/corrective action plan: Management agrees with the finding. The School Unit acknowledges that while suspension and debarment verifications for out-of-district tuition providers were performed through SAM.gov, documentation evidencing those verifications was not formally retaine...

Management’s response/corrective action plan: Management agrees with the finding. The School Unit acknowledges that while suspension and debarment verifications for out-of-district tuition providers were performed through SAM.gov, documentation evidencing those verifications was not formally retained. This occurred because the verification process was conducted as part of normal procurement due diligence; however, procedures did not explicitly require the retention of proof of those checks. RSU 18 will ensure that procedures will require documentation of suspension and debarment checks for all vendors and service providers subject to Uniform Guidance requirements. The school unit will utilize screenshots of vendors search on SAM.gov or signed vendor certifications/attestations as evidence for compliance. The records will be maintained with the Business office and reviewed prior to entering a new contract, renewal, or when required by federal program guidance. Management believes these corrective actions will strengthen internal controls, ensure compliance with Uniform Guidance documentation requirements, and prevent recurrence of this issue in future audit periods.

View Audit 385625

Finding 1172452 (2025-001)

Material Weakness 2025

Occidental College

CA

Student Financial Aid Internal Control / Segregation of Duties Special Tests & Provisions

OCCIDENTAL COLLEGE CORRECTIVE ACTION PLAN FINDING 2025-001 – Special Tests and Provisions – Enrollment Reporting: Significant Deficiency in Internal Control over Compliance Explanation of Deficiency: A sample of 20 federal aid recipient students was selected fromsystem generated reports of students ...

OCCIDENTAL COLLEGE CORRECTIVE ACTION PLAN FINDING 2025-001 – Special Tests and Provisions – Enrollment Reporting: Significant Deficiency in Internal Control over Compliance Explanation of Deficiency: A sample of 20 federal aid recipient students was selected fromsystem generated reports of students who graduated, withdrew, or dropped during the 2024-2025 academic year. The enrollment information per the College’s records was compared to the information reported to the National Student Loan Data System (NSLDS) in order to determine if status changes were reported within the required timeframes. All 20 of the students selected as samples were not reported to the NSLDS within the required timeframe. Corrective Action Plan: With the hiring of our Associate Registrar for Systems and Reporting we once again have a staff member specifically responsible for reporting enrollment and degrees to the NSC. That position is backed up by three other staff members who also have access to submit and correct files. This past summer, we adjusted our reporting schedule in a further effort to comply with our reporting requirements. Despite any delays caused by us or by the National Student Clearinghouse, I understand that we are responsible for making sure our data is received and posted according to our obligations. The division of labor that comes with a full staff will allow for data transfers as soon as degrees are posted after the end of a semester. The adjusted timing for enrollment file submissions will also prevent any bottlenecks that might delay our data from being posted. These steps have already been implemented as evidenced by the fact that our degree file for the fall semester just ended was sent before our holiday break. As noted last year, staff have been instructed that the resolution of error files is to be given a high priority. One staff member has priority responsibility for resolving those files backed up by our primary submitter of data to the Clearinghouse. Contact Person Responsible for Corrective Action: James Herr, Occidental College Registrar Anticipated Completion Date: August 1, 2025

View Audit 385605

Finding 1172447 (2025-001)

Material Weakness 2025

Alamosa School District Re-11j

CO

Procurement, Suspension & Debarment Subrecipient Monitoring Internal Control / Segregation of Duties § 200.303

Action Taken: The District has updated internal control procedures to add additional segregation of duties and documentation. A standard time sheet has been implemented District wide until the District can purchase and implement the timeclock management system add on to its current employee tracking...

Action Taken: The District has updated internal control procedures to add additional segregation of duties and documentation. A standard time sheet has been implemented District wide until the District can purchase and implement the timeclock management system add on to its current employee tracking software. Timesheets are only allowed to be turned in to the Payroll Clerk by the approving supervisor, and after timesheets are entered by the Payroll Clerk they are scanned to the supervisor to review and make sure they agree to what was turned in. The Chief Operations and Financial Officer, Director of Child Nutrition, and Payroll Clerk have all completed internal control training, and The District is evaluating the Child Nutrition Department’s staffing and job descriptions and looking into adding a clerical position to help with reporting and add to segregation of duties/checks and balances.

View Audit 385590

Finding 1172439 (2025-002)

Material Weakness 2025

Bay De Noc Community College

MI

Special Tests & Provisions Student Financial Aid Subrecipient Monitoring

Noncompliance with Enrollment Status Change Reporting. Auditor Description of Condition and Effect. Of 18 enrollment status changes tested, we noted 1 change that was not reported to the National Student Loan Data System (NSLDS) within 60 days due to a student being assigned a different coding struc...

Noncompliance with Enrollment Status Change Reporting. Auditor Description of Condition and Effect. Of 18 enrollment status changes tested, we noted 1 change that was not reported to the National Student Loan Data System (NSLDS) within 60 days due to a student being assigned a different coding structure within the College's system which resulted in the student being excluded from the standard status-change reporting process. As a result of university personnel using the incorrect semester start dates. As a result of this condition, the College was temporarily out of compliance with enrollment reporting requirements. Auditor Recommendation. We recommend the College review and update its enrollment reporting processes to ensure that all students-including those with unique or foreign-student coding-are captured in routine status-change monitoring and NSLDS reporting procedures. The College should implement controls to detect nonstandard coding and ensure that all enrollment changes are identified and reported within required federal timelines. Corrective Action. Bay College took swift action after determining some students were being excluded in our enrollment reporting. Our reporting process was excluding students who were noted as being a citizen of a foreign county. We now review these students prior to each reporting cycle to determine if they should be included in the reporting. The Financial Aid team reviews this report to determine if the student is eligible for federal student aid. Students who are eligible are indicated and provided to the Institutional Effectiveness team to include in the enrollment reporting. This process is completed prior to each reporting cycle. For students who were not included in our prior reporting, the Financial Aid team working directly with the Institutional Effectiveness team, determined which should be reported and completed their enrollment reporting directly through NSLDS. Responsible Person. Ruth Carlson, Director of Financial Aid. Anticipated Completion Date. June 30, 2026

View Audit 385572

Finding 1172432 (2025-002)

Material Weakness 2025

Eagle Advantage Schools, Iync Dba Advantage Academ

TX

Allowable Costs / Cost Principles School Nutrition Programs Significant Deficiency

Finding 2025-002: Allowable cost-Significant deficiency in internal controls over compliance. Management Response The District purchased supplies on the District credit card. There was no purchasing requisition entered or approval prior to making the purchase. The District conducted procurement trai...

Finding 2025-002: Allowable cost-Significant deficiency in internal controls over compliance. Management Response The District purchased supplies on the District credit card. There was no purchasing requisition entered or approval prior to making the purchase. The District conducted procurement training in August 2025. The District will conduct another training in October 2025 to discuss procurement requirements regarding credit card purchases. If a credit card purchase is made without a requisition, the accounts payable staff will notify the management prior to the credit card payment.

View Audit 385564

Finding 1172429 (2025-001)

Material Weakness 2025

Eagle Advantage Schools, Iync Dba Advantage Academ

TX

Cash Management Reporting School Nutrition Programs

Finding 2025-001: Reporting – Significant deficiency in internal controls over compliance. Management Response: The District’s Child Nutrition Assistant Director (AD) prepared the claims data submitted into the Tx-UNPS System to receive Child Nutrition federal funding. The claims data was submitted ...

Finding 2025-001: Reporting – Significant deficiency in internal controls over compliance. Management Response: The District’s Child Nutrition Assistant Director (AD) prepared the claims data submitted into the Tx-UNPS System to receive Child Nutrition federal funding. The claims data was submitted without management approval. The District will implement procedures to ensure that monthly claim reports are reviewed by the Chief Operations Officer (COO) prior to being submitted into Tx-UNPS System. The AD will prepare the claims report documentation, which includes the point of sale and attendance reports. The claims report and supporting documentation will be emailed to the COO. Once the reports are reviewed and determined to be accurate, the COO will email approval. Once the AD receives approval via email from the COO, the email will be printed or digitally saved with the claims reports. The AD will submit claims data into the Tx-UNPS System and print the NSLP Claim for Reimbursement Summary. The Summary will be sent to the COO for confirmation. The new process will begin in October 2025.

View Audit 385564

Finding 1172419 (2025-001)

Material Weakness 2025

Flathead Valley Community College

MT

Student Financial Aid

Finding: 2025-01 Federal Agency Name: Department of Education Assistance Listing Number: 84.007, 84.033, 84.063, 84.268 Award Numbers: P007A242416, P033A242416, R063P242851, P268K252851 Program Name: Student Financial Aid Cluster Finding Summary: In the current fiscal year, the College failed to ide...

Finding: 2025-01 Federal Agency Name: Department of Education Assistance Listing Number: 84.007, 84.033, 84.063, 84.268 Award Numbers: P007A242416, P033A242416, R063P242851, P268K252851 Program Name: Student Financial Aid Cluster Finding Summary: In the current fiscal year, the College failed to identify populations whose enrollment status changed and accurately report changes to National Student Clearinghouse and the National Student Loan Data System (NSLDS). This issue was discovered during the annual audit of student financial aid files. Of the565 Title-IV recipients for the affected terms, 37 students (6.5%) have been identified as affected by this issue. Corrective Action: The process has been reviewed and updated to correct this issue. • The Information Technology department has developed an internal script to actively identify and update student enrollment status records whose enrollment statuses have not already changed in the College’s School Information System, which then allows the student files to be identified in National Student Clearinghouse reporting procedures. • A report was created and is checked monthly to screen student accounts for manual review in case script developed does not update student records with new enrollment statuses. This report includes the date of status change for manual auditing of reason for status change in manual review. Responsible Individual: Cameron Brown, Director, Financial Aid Completion Date: August 2025

View Audit 385537

Finding 1172415 (2025-001)

Material Weakness 2025

Holmes County Consolidated School District

MS

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Equipment & Real Property Management

Finding Correction Action Plan Details 2025-001 a. Name of Contact Person Responsible for Corrective Action: Michelle Cage – Chief Financial Officer b. Corrective Action Planned: Management will continue to implement policies or procedures to establish an internal control system that will ensure str...

Finding Correction Action Plan Details 2025-001 a. Name of Contact Person Responsible for Corrective Action: Michelle Cage – Chief Financial Officer b. Corrective Action Planned: Management will continue to implement policies or procedures to establish an internal control system that will ensure strong financial accountability, proper safeguarding of assets, and compliance with federal grant requirements. c. Anticipated Completion Date: Immediately.

View Audit 385530

Finding 1172413 (2025-001)

Material Weakness 2025

Chabot - Las Positas Community College District

CA

Student Financial Aid Significant Deficiency Internal Control / Segregation of Duties

Views of Responsible Officials and Corrective Action Plan The Campus Business and Financial Aid Offices reviewed the untimely return of Title IV (R2T4) funds and implemented a revised process to ensure compliance. Weekly R2T4 reviews: Financial Aid specialists now review all accounts requiring R2T4 ...

Views of Responsible Officials and Corrective Action Plan The Campus Business and Financial Aid Offices reviewed the untimely return of Title IV (R2T4) funds and implemented a revised process to ensure compliance. Weekly R2T4 reviews: Financial Aid specialists now review all accounts requiring R2T4 calculations each week. Mid-month reconciliation: Added to the existing end-of-month process to expedite fund returns. Weekly coordination meetings: Financial Aid and Business Services staff review pending cases to ensure all returns meet the 45-day federal deadline. Quarterly compliance checks: Other Financial Aid staff monitor adherence and make recommendations for process improvement. The District will review this process each term and adjust procedures as needed to sustain compliance and efficiency.

View Audit 385528

Finding 1172408 (2025-002)

Material Weakness 2025

Dodgeland School District

WI

Internal Control / Segregation of Duties Reporting

This segregation of duties weakness is impratical to totally correct due to the limited resources and staff available to the district. The District will continue to use other controls, where practical, to compensate for this limitation.

View Audit 385527

Finding 1172406 (2025-001)

Material Weakness 2025

Parallax Advanced Research Corporation

OH

Cash Management Procurement, Suspension & Debarment Significant Deficiency

As a 501c3 non-profit organization with a large portfolio of federally funded cost-reimbursement awards, management of cash is of fundamental importance due to the nature of the business and floating of cash involved in base operations and maintaining our valued vendor partnerships. Parallax has mad...

As a 501c3 non-profit organization with a large portfolio of federally funded cost-reimbursement awards, management of cash is of fundamental importance due to the nature of the business and floating of cash involved in base operations and maintaining our valued vendor partnerships. Parallax has made significant improvements from prior years, including but not limited to, establishment of a formal Billing Policy and substantially fewer selections where vendor payment wasn’t made within 30 days of Parallax’s request for reimbursement from the government. Unfortunately, Parallax encountered some cumulative timing challenges on cash collections because of provisional vs. anticipated final billing rates in fiscal year 2025. Parallax is also in the process of renegotiating the terms of the line of credit that would avoid fluctuations based on receivables. We believe a combination of internal controls through the policy put in place, collection of backlog rate variances and a static line of credit availability will collectively assist with ensuring future compliance. The anticipated completion date of May 1, 2026 was derived from the requirement to submit our Incurred Cost Submission to the government by December 31, 2025. The anticipated completion date assumes established final rates within a 60-calendar day window of that date to allow time to process billings, communicate with clients and allow time for payment processing to Parallax.

View Audit 385506

Finding 1172402 (2025-001)

Material Weakness 2025

Village Tech Schools, Inc.

TX

Cash Management Reporting School Nutrition Programs

Subject: Management response to Fiscal Year 2025 Audit Findings The management of Village Tech Schools acknowledges receipt of the following findings for the FY25 audit and has developed a corrective action plan response to address the findings. Finding 2025-001: Reporting – Significant deficiency i...

Subject: Management response to Fiscal Year 2025 Audit Findings The management of Village Tech Schools acknowledges receipt of the following findings for the FY25 audit and has developed a corrective action plan response to address the findings. Finding 2025-001: Reporting – Significant deficiency in internal controls over compliance. Management Response: The District’s Child Nutrition Supervisor (CNS) prepared the claims data submitted into the Tx-UNPS System to receive Child Nutrition federal funding. The claims data was submitted without management approval. The District will implement procedures to ensure that monthly claim reports are reviewed by the Chief Operations Officer (COO) prior to being submitted into Tx-UNPS System. The CNS will prepare the claims report documentation, which includes the point of sale and attendance reports. The claims report and supporting documentation will be emailed to the COO. Once the reports are reviewed and determined to be accurate, the COO will email approval. Once the CNS receives approval via email from the COO, the email will be printed or digitally saved with the claims reports. The CNS will submit claims data into the Tx-UNPS System and print the NSLP Claim for Reimbursement Summary. The Summary will be sent to the COO for confirmation. The new process will begin in October 2025.

View Audit 385496

Finding 1172396 (2025-001)

Material Weakness 2025

Local Area Workforce Development-North Central

PR

Matching / Level of Effort / Earmarking

Reportable Condition: See Condition 2025-001 Recommendation We recommend the Local Area monitoring the earmarking procedures for the Youth Program on a quarterly basis to ensure that at the end of the to two years meet the requirement establish. If deviations or failure to meet the earmark are noted...

Reportable Condition: See Condition 2025-001 Recommendation We recommend the Local Area monitoring the earmarking procedures for the Youth Program on a quarterly basis to ensure that at the end of the to two years meet the requirement establish. If deviations or failure to meet the earmark are noted, communications must be generated to youth program staff to take corrective actions before the elapse of the funding period. Action Taken The Executive Director has begun meetings with staff to establish a short-term plan to discuss strategies to increase the number of youth participants in the Program. In addition, at these meetings, the Executive Director has instructed the Program Executive and Program Manager to maintain control over the budget allocated and the activities to be carried out and to coordinate the planning of future activities. With regard to the Finance Area, the Chief Financial Officer is instructed that at least every two months or at the request of the Assistance Manager submit the “Encumbrance Budget Report” to see the changes in budget and be able to make decisions related to changes in the approved budget by the Labor Department Program. In the meetings to be held, the results obtained and the status of the activities carried out in order to be accountable for the actions carried out must be reported. This to maintain continuous monitoring of the program, before the end of the validity of the funds.

View Audit 385452

Finding 1172395 (2025-002)

Material Weakness 2025

Northern Sierra Air Quality Management District

CA

Procurement, Suspension & Debarment § 200.318 § 200.326

The District will develop and implement procurement policies and procedure to ensure compliance with 2 CFR section 200.318 to 200.326.

View Audit 385451

Finding 1172394 (2025-001)

Material Weakness 2025

HOUSING AUTHORITY OF THE CITY OF STERLING, COLORADO

CO

Cash Management HUD Housing Programs Subrecipient Monitoring

In accordance with HUD requirements, the Authority plans to begin drawing down operating-subsidy funds on a monthly basis. The Executive Director and Board will continue to review monthly financial statements prepared by the accountants and will research and evaluate potential investment options to ...

In accordance with HUD requirements, the Authority plans to begin drawing down operating-subsidy funds on a monthly basis. The Executive Director and Board will continue to review monthly financial statements prepared by the accountants and will research and evaluate potential investment options to increase the return on available funds. The Authority intends to develop and adopt formal written procedures for cash management and investment monitoring during the next fiscal year.

View Audit 385443

Finding 1172392 (2025-001)

Material Weakness 2025

Magnolia Housing Corporation of Natchitoches, Inc.

LA

Internal Control / Segregation of Duties Subrecipient Monitoring Cash Management

Magnolia Manor Corporation has taken steps to ensure that the Replacement Reserve account will not be underfunded by withdrawing funds to cover the Operating Account. The underfunded amount of $2,688.00 has been deposited on August 20, 2025, and $306.00 has been deposited on September 15, 2025. Magn...

Magnolia Manor Corporation has taken steps to ensure that the Replacement Reserve account will not be underfunded by withdrawing funds to cover the Operating Account. The underfunded amount of $2,688.00 has been deposited on August 20, 2025, and $306.00 has been deposited on September 15, 2025. Magnolia Manor Corporation has reviewed the auditors' recommendation and will ensure that more thorough monthly reviews will be implemented.

View Audit 385441

Finding 1172391 (2025-001)

Material Weakness 2025

C.s. Mott Community College

MI

Student Financial Aid Special Tests & Provisions

Special Tests and Provisions - Enrollment Reporting Auditor Description of Condition and Effect. During our testing we noted that two students out of a testing population of eleven did not have their status change reported timely to NSLDS, one of which also had differences in their program level enr...

Special Tests and Provisions - Enrollment Reporting Auditor Description of Condition and Effect. During our testing we noted that two students out of a testing population of eleven did not have their status change reported timely to NSLDS, one of which also had differences in their program level enrollment and campus level enrollment details. Another student had an incorrect effective date reported to NSLDS. As a result, there is an increased risk that information will not be reported to NSLDS timely and accurately. Auditor Recommendation. We recommend that the College enhance its policies and procedures regarding enrollment reporting to ensure that reporting is completed timely and accurately. Corrective Action. We currently have a 30-day reporting schedule but to prevent these issues from recurring, our institution has implemented the following measures: • Internal control review: We will run a comprehensive review of our enrollment reporting procedures in order to strengthen our internal controls to ensure data accuracy and timeliness. • Increased monitoring: A designated staff member now has direct access to the NSC and NSLDS websites to monitor reporting compliance and track file submissions and error reports. • System review: We have identified the deficiency for unofficial withdrawals. Our SIS platform has a feature that will correct this reporting issue and we will utilize it for future reporting. Our institution is committed to maintaining full compliance with all federal regulations regarding student financial aid and enrollment reporting. We have addressed the root cause of this reporting delay and are confident that our new procedures will ensure accurate and timely submissions to the NSC and NSLDS moving forward. Responsible Person. Michele Traver, Registrar Anticipated Completion Date. Fall 2025

View Audit 385439

Finding 1172387 (2025-001)

Material Weakness 2025

Frederick Community College

MD

Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking

R2T4 Audit: FY25 Corrective Action Plan To address the audit findings, the FCC has initiated the following actions: •Spring 2025, Completed: oRevised Processing Timeline: All R2T4 calculations and returns are now completedwithin 30 days, reserving the final 15 days exclusively for QA. (Responsible L...

R2T4 Audit: FY25 Corrective Action Plan To address the audit findings, the FCC has initiated the following actions: •Spring 2025, Completed: oRevised Processing Timeline: All R2T4 calculations and returns are now completedwithin 30 days, reserving the final 15 days exclusively for QA. (Responsible Leader:Director of Financial Aid) oCross-Training and Succession Planning:Staff cross-trained; onboarding/offboardingdutiesdocumented to eliminate single points of failure.(Responsible Leader: Director ofFinancial Aid) •September 2025, Underway: oLeadership Communication Protocol:A formal process is beingfinalized to ensurecompliance issues are documentedand escalatedforawareness to the President and theCFO/VP for Administration. Thisprotocol alsoreinforcesa cultureof accountability where compliance concernsare escalated promptly and transparently. (ResponsibleLeader: AVP for Student and Financial SupportServices) •Monthly Monitoring and Reporting:Compliance reviews reported monthlyto the VP for Student Experience and then to the President and the CFO/VPfor Administration for awareness. (Responsible Leader: VP for StudentExperience). oQA Tracking Form: Implemented to document each review and correction for auditverification. (Responsible Leader: Director of Financial Aid) •Fall 2025 – Spring 2026, To Be Planned and Executed: oExternal Program Review: FCC will engage an external consultant agency (TBD) toconduct a comprehensive Financial Aid Office program review in FY26, validatingcompliance, staffing adequacy, and process integrity. (Responsible Leader: AVP forStudent and Financial Support Services) •Timeline, Next Steps, Responsible FCC Leader: oOctober 6, 2025: Submit formal corrective action plan to Auditors (VPSE) oOctober 15, 2025: Receive first compliance review report for AVP to VP reporting toPresident’s Council, as part of enterprise risk management awareness. (AVP/VPSE) oJanuary to April 2026: Conduct external program review of the Financial Aid Office andreport findings to President and the CFO/VP for Administration by June 2026. (AVP) •Expected completion date: June 2026 •Person responsible: Dr. Edmund T. Cabellon, Interim Vice President for Student Experience

View Audit 385437

Finding 1172383 (2025-003)

Material Weakness 2025

Urban League of Greater Chattanooga

TN

Reporting

Effective immediately, ULGC will seek to engage an external financial consultant to provide formal training under the direction of Reginald F. Smith II, President and CEO. Training will be targeted to the accounting team, including the Director of Accounting, and will focus on GAAP compliance, timel...

Effective immediately, ULGC will seek to engage an external financial consultant to provide formal training under the direction of Reginald F. Smith II, President and CEO. Training will be targeted to the accounting team, including the Director of Accounting, and will focus on GAAP compliance, timely month-end closing procedures, grant revenue recognition, indirect cost allocation, accurate cash application to accounts receivable, and SEFA preparation.

View Audit 385435

Finding 1172382 (2025-001)

Material Weakness 2025

Urban League of Greater Chattanooga

TN

Effective immediately, ULGC will seek to engage an external financial consultant to provide formal training under the direction of Reginald F. Smith II, President and CEO. Training will be targeted to the accounting team, including the Director of Accounting, and will focus on GAAP compliance, timel...

Effective immediately, ULGC will seek to engage an external financial consultant to provide formal training under the direction of Reginald F. Smith II, President and CEO. Training will be targeted to the accounting team, including the Director of Accounting, and will focus on GAAP compliance, timely month-end closing procedures, grant revenue recognition, indirect cost allocation, accurate cash application to accounts receivable, and SEFA preparation.

View Audit 385435

Finding 1172379 (2025-001)

Material Weakness 2025

Matchbook Learning Schools of Indiana, Inc.

IN

Reporting Significant Deficiency Internal Control / Segregation of Duties

Corrective Action Plan Matchbook Learning Schools of Indiana, Inc. Finding 2025-001 – Maintenance of Effort (MOE) Federal Program: Title I, Part A (84.010) Repeat Finding: Yes (Prior Audit Finding 2024-004) Corrective Action Plan Matchbook Learning Schools of Indiana, Inc. acknowledges the Maintenan...

Corrective Action Plan Matchbook Learning Schools of Indiana, Inc. Finding 2025-001 – Maintenance of Effort (MOE) Federal Program: Title I, Part A (84.010) Repeat Finding: Yes (Prior Audit Finding 2024-004) Corrective Action Plan Matchbook Learning Schools of Indiana, Inc. acknowledges the Maintenance of Effort (MOE) finding related to the accuracy of expenditures reported on the Form 9 cash-basis report submitted to the Indiana Department of Education (IDOE). This finding is a repeat finding from the prior audit period. The School recognizes that prior corrective actions were not sufficient to fully address the reliability of Form 9 reporting. As a result, the School has enhanced and formalized internal controls surrounding Form 9 preparation, review, and submission to ensure compliance with IDOE guidelines and to prevent recurrence of this issue. Corrective Actions Implemented 1. Formal Form 9 Reconciliation Process ○ The School has implemented a documented reconciliation process to compare internal cash-basis financial records to the Form 9 prior to submission. ○ This reconciliation ensures that only allowable cash expenditures are reported and that reported totals align with bank activity and supporting documentation. 2. Strengthened Review and Approval Controls ○ Preparation of the Form 9 is now subject to a multi-level review process. ○ The Form 9 will be reviewed by the School’s financial consultant and School leadership to confirm accuracy, compliance with IDOE reporting guidance, and consistency with underlying financial records prior to submission. 3. Written Procedures and Staff Training ○ Written internal procedures have been developed outlining Form 9 preparation requirements, including proper treatment of accruals, timing differences, and non-cash items. ○ Staff involved in financial reporting have received refresher training on IDOE Form 9 reporting requirements and maintenance of effort considerations. 4. Ongoing Monitoring and Communication ○ The School will perform periodic internal monitoring of cash-basis expenditures throughout the fiscal year to identify potential discrepancies prior to year-end reporting. ○ When necessary, the School will proactively communicate with IDOE to clarify reporting requirements before submission. Responsible Officials ● Board of Directors ● School Leadership ● Director of Finance Planned Completion Date ● Immediate and Ongoing These procedures have been implemented and will be applied to the current and all future reporting periods. Expected Results The implementation of these enhanced internal controls will ensure that Form 9 expense reporting is accurate, complete, and prepared in accordance with IDOE guidelines. This will support reliable Maintenance of Effort calculations by IDOE and is expected to prevent recurrence of this finding in future audit periods. Don Stewart COO Matchbook Learning

View Audit 385429

Finding 1172372 (2025-001)

Material Weakness 2025

Village of Hanover

IL

Internal Control / Segregation of Duties Reporting

The board of trustees regularly reviews financial statements, bank reconciliations, and budget vs. actual information to help to mitigate the lack of ideal segregation of duties.

View Audit 385416

Finding 1172371 (2025-004)

Material Weakness 2025

St. Martin Parish School Board

LA

The payment of the contract has been reclassed to the general fund. District staff will research more closely unusual expenditures such as this one in the future.

View Audit 385412

Corrective Action Plans

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