Corrective Action Plans

Finding 1168229 (2024-008)

Material Weakness 2024

WA

Allowable Costs / Cost Principles § 200.430

Planned corrective actions: Heritage implemented a new system, however Heritage continues to encounter mistakes on correctly completing the time & efforts due to the differences in length of faculty contracts. Heritage continues to work on the process to improve with further training. Name of Respon...

Planned corrective actions: Heritage implemented a new system, however Heritage continues to encounter mistakes on correctly completing the time & efforts due to the differences in length of faculty contracts. Heritage continues to work on the process to improve with further training. Name of Responsible Party: 1. Rachel Castijella, Grant Accountant 2. Terri Slack, Fiscal Agent 3. Ivan Banks, Interim Provost 4. Joanne Fernandez, Controller 5. Sagrario Armenta Jimenez, CFO 6. Dr. Christopher Gilmer, President Anticipated completion date: 6/30/2026

View Audit 380015

Finding 1168227 (2024-007)

Material Weakness 2024

Heritage University

WA

Student Financial Aid Eligibility Significant Deficiency

Planned corrective actions: As a response to concerns about disruptions in processes and the turnover of key staff in several departments, the Enrollment Alliance group that includes director-level staff in Admissions, the Registrar, Financial Aid, Advising, Bursar, and IT began meeting under the fa...

Planned corrective actions: As a response to concerns about disruptions in processes and the turnover of key staff in several departments, the Enrollment Alliance group that includes director-level staff in Admissions, the Registrar, Financial Aid, Advising, Bursar, and IT began meeting under the facilitation of the VP of Student Affairs on January 7, 2025. This group will continue to work on implementing the proper controls to ensure that the determination of student eligibility for Title IV aid is appropriate and has supporting documentation. Name of Responsible Party: 1. Nancy Benavides,Financial Aid Director 2. Corey Hodge, VP for Student Affairs 3. Joanne Fernandez, Controller 4. Marla Withers, Assistant Controller 5. Sagrario Armenta Jimenez, CFO 6. Dr. Christopher Gilmer, President Anticipated completion date: 6/30/2026

View Audit 380015

Finding 1168226 (2024-006)

Material Weakness 2024

Heritage University

WA

Student Financial Aid Special Tests & Provisions Significant Deficiency

Planned corrective actions: A letter dated August 15,2024 from the Department of Education stated “the liquidation of Heritage University’s Federal Perkins Loan portfolio is complete.” Name of Responsible Party: 1. Nancy Benavides,Financial Aid Director 2. Corey Hodge, VP for Student Affairs 3. 3. J...

Planned corrective actions: A letter dated August 15,2024 from the Department of Education stated “the liquidation of Heritage University’s Federal Perkins Loan portfolio is complete.” Name of Responsible Party: 1. Nancy Benavides,Financial Aid Director 2. Corey Hodge, VP for Student Affairs 3. 3. Joanne Fernandez, Controller 4. Marla Withers, Assistant Controller 5. Sagrario Armenta Jimenez, CFO 6. Dr. Christopher Gilmer, President Anticipated completion date: 6/30/2025

View Audit 380015

Finding 1168225 (2024-005)

Material Weakness 2024

Heritage University

WA

Student Financial Aid Special Tests & Provisions Significant Deficiency

Planned corrective actions: As a response to concerns about disruptions in processes and the turnover of key staff in several departments, the Enrollment Alliance group that includes director-level staff in Admissions, the Registrar, Financial Aid, Advising, Bursar, and IT began meeting under the fa...

Planned corrective actions: As a response to concerns about disruptions in processes and the turnover of key staff in several departments, the Enrollment Alliance group that includes director-level staff in Admissions, the Registrar, Financial Aid, Advising, Bursar, and IT began meeting under the facilitation of the VP of Student Affairs on January 7, 2025. This group has helped to guide the Registrar's Office in the development and workflow structure of an electronic withdrawal form that must be routed through several required offices, including Financial Aid, to ensure that processes including R2T4 calculations are completed for each student who withdrawals during the semester. This structure is now in place. Name of Responsible Party: 1. Nancy Benavides,Financial Aid Director 2. J.T. Menard, Registrar 3. Ivan Banks, Interim Provost 4. Corey Hodge, VP for Student Affairs 5. Joanne Fernandez, Controller 6. Marla Withers, Assistant Controller 7. Sagrario Armenta Jimenez, CFO 8. Dr. Christopher Gilmer, President Anticipated completion date: 6/30/2026

View Audit 380015

Finding 1168224 (2024-004)

Material Weakness 2024

Heritage University

WA

Equipment & Real Property Management § 200.313

Planned corrective actions: Currently an informal yearly review of fixed assets between the operations and business offices is being done. Heritage has an asset inventory that is manually maintained, which indicates the items that are purchased with federal funds. Heritage’s operations department is...

Planned corrective actions: Currently an informal yearly review of fixed assets between the operations and business offices is being done. Heritage has an asset inventory that is manually maintained, which indicates the items that are purchased with federal funds. Heritage’s operations department is taking ownership of documenting university fixed assets and deploying an asset management software. This will be helpful in conducting physical inventories in the future. Name of Responsible Party: 1. Aaron Krantz, AVP for Technology & Operations 2. Joanne Fernandez, Controller 3. Sagrario Armenta Jimenez, CFO 4. Dr. Christopher Gilmer, President Anticipated completion date: 6/30/2026

View Audit 380015

Finding 1168222 (2024-003)

Material Weakness 2024

Heritage University

WA

Student Financial Aid Reporting Internal Control / Segregation of Duties

As a response to concerns about disruptions in processes and the turnover of key staff in several departments, the Enrollment Alliance group that includes director-level staff in Admissions, the Registrar, Financial Aid, Advising, Bursar, and IT began meeting under the facilitation of the VP of Stud...

As a response to concerns about disruptions in processes and the turnover of key staff in several departments, the Enrollment Alliance group that includes director-level staff in Admissions, the Registrar, Financial Aid, Advising, Bursar, and IT began meeting under the facilitation of the VP of Student Affairs on January 7, 2025. When the registrar office sends their enrollment reporting through the clearing house, financial aid will have a person with access to NSLDS to spot check to ensure enrollment is submitted correctly and in a timely manner. A system will be developed where spot checks will be done monthly on a few random students. Name of Responsible Party: 1. Nancy Benavides,Financial Aid Director 2. J.T. Menard, Registrar 3. Ivan Banks, Interim Provost 4. Corey Hodge, VP for Student Affairs 5. Joanne Fernandez, Controller 6. Marla Withers, Assistant Controller 7. Sagrario Armenta Jimenez, CFO 8. Dr. Christopher Gilmer, President Anticipated completion date: 6/30/2026

View Audit 380015

Finding 1168221 (2024-002)

Material Weakness 2024

Heritage University

WA

Allowable Costs / Cost Principles § 200.430

Planned Corrective Action: Heritage implemented a new system, however Heritage continues to encounter mistakes on correctly completing the time & efforts due to the differences in length of faculty contracts. Even though DOE noted that “this finding resolved and closed.”, Heritage continues to work ...

Planned Corrective Action: Heritage implemented a new system, however Heritage continues to encounter mistakes on correctly completing the time & efforts due to the differences in length of faculty contracts. Even though DOE noted that “this finding resolved and closed.”, Heritage continues to work on the process to improve with further training. Name of Responsible Party: 1. Rachel Castijella, Grant Accountant 2. Terri Slack, Fiscal Agent 3. Ivan Banks, Interim Provost 4. Joanne Fernandez, Controller 5. Sagrario Armenta Jimenez, CFO 6. Dr. Christopher Gilmer, President Anticipated Completion Date: 6/30/2026

View Audit 380015

Finding 1168207 (2024-005)

Material Weakness 2024

Detroit Health Care for the Homeless Dba Advantage Health Centers

MI

Eligibility HUD Housing Programs Matching / Level of Effort / Earmarking § 200.303

AHC has revised its patient intake procedures to ensure that all required documentation is collected and verified at the point of service. An electronic eligibility checklist has been integrated into the EHR, and staff have been trained to collect alternative income documentation where appropriate. ...

AHC has revised its patient intake procedures to ensure that all required documentation is collected and verified at the point of service. An electronic eligibility checklist has been integrated into the EHR, and staff have been trained to collect alternative income documentation where appropriate. Monthly audits of ten patient files per site are conducted, and exceptions are logged and resolved within ten business days. Policies and procedures have been updated to reflect documentation and compliance standards. Ongoing monitoring and periodic staff retraining continue to support program integrity and compliance with federal requirements. Moving forward, responsibility for managing the sliding fee discount process will transition from front-desk personnel to the Revenue Cycle department to ensure stronger oversight and accountability.

View Audit 380010

Finding 1168206 (2024-004)

Material Weakness 2024

Detroit Health Care for the Homeless Dba Advantage Health Centers

MI

Reporting § 200.512

Due to staffing limitations, AHC did not meet the required FAC filing deadline for the audit period. To prevent future delays, AHC has implemented procedures to ensure timely submissions and will adhere strictly to all future reporting deadlines. Responsibility for monitoring and completing the FAC ...

Due to staffing limitations, AHC did not meet the required FAC filing deadline for the audit period. To prevent future delays, AHC has implemented procedures to ensure timely submissions and will adhere strictly to all future reporting deadlines. Responsibility for monitoring and completing the FAC submission has been clearly assigned, and deadline tracking has been incorporated into the organization’s compliance calendar.

View Audit 380010

Finding 1168203 (2024-003)

Material Weakness 2024

Detroit Health Care for the Homeless Dba Advantage Health Centers

MI

Reporting § 200.510

AHC has implemented a comprehensive process to ensure the accuracy and completeness of its Schedule of Expenditures of Federal Awards (SEFA). A federal award register has been created, detailing ALNs/CFDA numbers, award numbers, and pass-through information. Quarterly reconciliations of the SEFA to ...

AHC has implemented a comprehensive process to ensure the accuracy and completeness of its Schedule of Expenditures of Federal Awards (SEFA). A federal award register has been created, detailing ALNs/CFDA numbers, award numbers, and pass-through information. Quarterly reconciliations of the SEFA to the general ledger and individual grant records are performed, with supervisory review and sign-off to confirm accuracy. All general ledger grant segments are now mapped to SEFA reporting lines, and completeness checks are conducted using HRSA and MDHHS award confirmations. During the FY 2024 audit, it was identified that certain foundation grant CFDA numbers were missing from the SEFA schedule, resulting in incomplete reporting. In response, AHC has implemented a new policy requiring that all new grant awards undergo verification of CFDA numbers and federal expenditure classification prior to inclusion in the SEFA. This additional layer of review ensures that all awards are properly captured and reported in compliance with Uniform Guidance requirements. Finance staff have been retrained on SEFA preparation and federal reporting requirements, and quarterly monitoring continues to ensure ongoing compliance, completeness, and accuracy of all reported expenditures.

View Audit 380010

Finding 1168197 (2024-002)

Material Weakness 2024

Detroit Health Care for the Homeless Dba Advantage Health Centers

MI

Cash Management Allowable Costs / Cost Principles Reporting § 200.305

AHC has fully implemented enhanced reconciliation procedures to ensure that all grant drawdowns are reconciled to the general ledger prior to submission, with supporting documentation retained electronically. Quarterly internal audits of drawdown packets are conducted to ensure compliance with feder...

AHC has fully implemented enhanced reconciliation procedures to ensure that all grant drawdowns are reconciled to the general ledger prior to submission, with supporting documentation retained electronically. Quarterly internal audits of drawdown packets are conducted to ensure compliance with federal requirements. These improvements eliminate timing discrepancies and strengthen federal cash management controls. All federal expenditures year-to-date have been verified. It is important to note that AHC did not maintain a single consolidated record of drawdown support but instead retained multiple supporting documents. Despite this documentation issue, all drawdowns were found to be in compliance with HRSA guidelines and were determined to represent allowable costs.

View Audit 380010

Finding 1168190 (2024-001)

Material Weakness 2024

Historic South Initiative

OH

Procurement, Suspension & Debarment § 200.303 § 200.317 § 200.318 § 200.320 § 200.324

Prospectively, Historic South will review best practices related to the contract awarding process and formal contracting arrangements for construction work. In addition, Historic South will implement policies of: 1. Requiring the solicitation of multiple bids for all construction work in excess of $...

Prospectively, Historic South will review best practices related to the contract awarding process and formal contracting arrangements for construction work. In addition, Historic South will implement policies of: 1. Requiring the solicitation of multiple bids for all construction work in excess of $10,000 2. Establishing criteria for awarding all construction work 3. Implementing formal contracting processes for all construction work

View Audit 379971

Finding 1168188 (2024-007)

Material Weakness 2024

County of Humboldt

CA

Eligibility Internal Control / Segregation of Duties Subrecipient Monitoring

Condition: During the review of 60 sampled cases, 2 cases were found where redeterminations were performed outside the required 12-month window, indicating non-compliance with federal renewal timing requirements. And one of the two cases were deemed ineligible during the re-evaluation. Recommendatio...

Condition: During the review of 60 sampled cases, 2 cases were found where redeterminations were performed outside the required 12-month window, indicating non-compliance with federal renewal timing requirements. And one of the two cases were deemed ineligible during the re-evaluation. Recommendation: CLA recommends that the County implement or reinforce tracking procedures, such as a monitoring checklist, to ensure lead and supervisor reviews are completed and accountability is maintained. Additionally, CLA recommends that the County conduct targeted refresher training for staff and supervisors on renewal timelines and review protocols to strengthen procedural compliance and minimize errors. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: Retrain supervisory staff and line-staff regarding the importance of timely redetermination. Increase reporting, especially exceptions reporting, on the status of outstanding redeterminations. Commitment to continued periodic trainings. Name(s) of the contact person(s) responsible for corrective action: Connie Beck Planned completion date for corrective action plan: Fiscal year ended June 30, 2026

View Audit 379965

Finding 1168179 (2024-006)

Material Weakness 2024

County of Humboldt

CA

Reporting § 200.328 § 200.329

Condition: During our testing, we noted that for each of the County’s seven Airport Improvement Program grants, only Form SF-271 was submitted for the audit period, despite requirements to submit five distinct report types per grant. Recommendation: CLA recommends that the County provide staff with ...

Condition: During our testing, we noted that for each of the County’s seven Airport Improvement Program grants, only Form SF-271 was submitted for the audit period, despite requirements to submit five distinct report types per grant. Recommendation: CLA recommends that the County provide staff with training related to identifying and complying with grant requirements. Additionally, CLA recommends that the County implement tracking procedures, such as a monitoring checklist, to ensure all required reports are submitted in a timely manner. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: Department is working with the FAA to complete past-due reports and has improved tracking of required reports and deadlines. Name(s) of the contact person(s) responsible for corrective action: Aviation Director Planned completion date for corrective action plan: Fiscal year ended June 30, 2026

View Audit 379965

Finding 1168145 (2024-003)

Material Weakness 2024

Harrison County

OH

Subrecipient Monitoring § 200.331

Prior to July 1, 2024, Jefferson County Community Action Commission (CAC) served as a subrecipient for WIOA programs (specifically as related to this finding for the Comprehensive Case Management and Employment program (CCMEP) funded by TANF) for which funding was received by the Harrison County Dep...

Prior to July 1, 2024, Jefferson County Community Action Commission (CAC) served as a subrecipient for WIOA programs (specifically as related to this finding for the Comprehensive Case Management and Employment program (CCMEP) funded by TANF) for which funding was received by the Harrison County Department of Job and Family Services (agency). As noted in the Audit Finding for 2023 (2023-002) Harrison County Department of Job and Family Services had not properly monitored the subrecipient. However, as of July 1, 2024, the CAC is no longer a subrecipient and serves as a contractor for the work experience youth element as part of the CCMEP program. Harrison County Department of Job and Family Services staff complete all eligibility for that program and referrals are made to the CAC only for youth for whom the work experience element is needed. The subrecipient monitoring issue was corrected in 2024 due to the agency reassuming responsibility for the programs and only contracting out specific youth elements in the CCMEP program.

View Audit 379902

Finding 1168128 (2024-001)

Material Weakness 2024

Instituto Para El Desarrollo Socio Economico Y De Vivienda De P.r.,inc

PR

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties § 200.512

Corrective Action Plan For the Year Ended December 31, 2023 Finding Reference Number: 2023-001 Finding Title: Late Submission of Single Audit Report Corrective Action Plan: INDESOVI de P.R., Inc. acknowledges the late filing of the Single Audit Report for the fiscal year ended December 31, 2023. The...

Corrective Action Plan For the Year Ended December 31, 2023 Finding Reference Number: 2023-001 Finding Title: Late Submission of Single Audit Report Corrective Action Plan: INDESOVI de P.R., Inc. acknowledges the late filing of the Single Audit Report for the fiscal year ended December 31, 2023. The report was submitted on February 27, 2025, which was 150 days after the required deadline of September 30, 2024. To correct and prevent recurrence of this finding, the following steps have been implemented:  Compliance Calendar: A compliance calendar has been developed and implemented to track all key federal reporting deadlines, including the Single Audit Report due date.  Assignment of Responsibility: The Controller has been designated as responsible for monitoring audit progress and ensuring timely submission of the audit package to the FAC.  Earlier Audit Scheduling: Audit planning and fieldwork will be scheduled earlier in the fiscal year to allow sufficient time for completion of audit procedures and report submission.  Oversight by Management: Senior management will review the compliance calendar quarterly to verify that all reporting requirements are on track for timely completion. Anticipated Completion Date: The corrective action plan has already been implemented as of March 2025.

View Audit 379859

Finding 1168084 (2024-004)

Material Weakness 2024

NEW YORK CITY FOUNDATION FOR COMPUTER SCIENCE EDUCATION, INC.

NY

Reporting Matching / Level of Effort / Earmarking § 200.301 § 200.328 § 200.512

Response to finding 2024-004 – Reporting Views of Responsible Officials: CSforALL management agrees with the conditions identified by SAX Advisory Group, including the noted causes and resulting effects under 2024-004. During the audit period, recordkeeping was not centrally maintained, and key docu...

Response to finding 2024-004 – Reporting Views of Responsible Officials: CSforALL management agrees with the conditions identified by SAX Advisory Group, including the noted causes and resulting effects under 2024-004. During the audit period, recordkeeping was not centrally maintained, and key documents were often stored under individual employee drives rather than within a shared, organization-controlled system. Due to the organizational pause at the end of 2024 and the transition period throughout 2025, the Organization had limited capacity to implement formal reporting controls; however, foundational corrective steps were initiated in 2025 to support full compliance during the 2026 operating year. This finding continued into the 2024 audit period due to the decentralized recordkeeping practices described above. Corrective Action taken in 2025: The Operations Manager conducted a full triage of existing accounts and transferred organizational documents into centralized CSforALL Drives. Files were reorganized by year and subject matter to ensure accessibility, consistency, and proper retention. This restructured system now provides a unified location for all grant-related documents, reporting records, and compliance materials, establishing a baseline for future Uniform Guidance reporting requirements. Corrective Action Planned for 2026: Beginning in 2026, CSforALL will implement formalized policies and procedures to ensure records are maintained in accordance with applicable compliance requirements and that all Uniform Guidance reports are submitted timely. The Operations Manager and Accounting team will oversee ongoing documentation, retention, and periodic internal review to ensure the reporting structure remains organized, accessible, and compliant throughout the 2026 operating year and beyond.

View Audit 379803

Finding 1168083 (2024-003)

Material Weakness 2024

NEW YORK CITY FOUNDATION FOR COMPUTER SCIENCE EDUCATION, INC.

NY

Subrecipient Monitoring § 200.331 § 200.332

Response to finding 2024-003 – Subrecipient Monitoring Views of Responsible Officials: CSforALL management agrees with the conditions identified by SAX Advisory Group, including the noted causes and resulting effects under 2024-003. Due to the organizational pause at the end of 2024 and the transiti...

Response to finding 2024-003 – Subrecipient Monitoring Views of Responsible Officials: CSforALL management agrees with the conditions identified by SAX Advisory Group, including the noted causes and resulting effects under 2024-003. Due to the organizational pause at the end of 2024 and the transition period throughout 2025, the Organization had limited capacity to maintain formalized subrecipient monitoring procedures aligned with 2 CFR 200.332. As CSforALL prepares for the 2026 rebuilding phase, management is establishing structured policies and procedures to ensure full compliance with federal subrecipient monitoring requirements. Corrective Action taken in 2025: During 2025, the Operations Manager ensured that all subrecipients associated with the current Alliance grant have signed or will sign formal Statements of Work with explicit deliverables and expectations required for payment. External parties without a Statement of Work are now required to submit proper documentation, invoicing, and proof of deliverables before any funds are released. No payments have been made to participants under the FY 2025 Alliance grant to date, as CSforALL is ensuring that all required policies and procedures are in place prior to both drawing down and paying out funds. Weekly and quarterly meetings have been established with external partners responsible for deliverables to confirm timelines, verify progress, and ensure alignment with payment expectations. Corrective Action Planned for 2026: Beginning in 2026, CSforALL will formalize subrecipient monitoring policies aligned with 2 CFR 200.332, including risk assessments for all subrecipients, review and documentation of Single Audit reports where applicable, issuance of management decisions, and structured ongoing monitoring activities. All monitoring documentation will be maintained in a centralized, accessible system to ensure consistent compliance throughout the 2026 operating year and beyond.

View Audit 379803

Finding 1168082 (2024-002)

Material Weakness 2024

NEW YORK CITY FOUNDATION FOR COMPUTER SCIENCE EDUCATION, INC.

NY

Procurement, Suspension & Debarment § 200.214 § 200.319 § 200.320

Response to finding 2024-002 – Procurement, Suspension, and Debarment Views of Responsible Officials: CSforALL management agrees with the conditions identified by SAX Advisory Group, including the noted causes and resulting effects under 2024-002. Due to the organizational pause at the end of 2024 a...

Response to finding 2024-002 – Procurement, Suspension, and Debarment Views of Responsible Officials: CSforALL management agrees with the conditions identified by SAX Advisory Group, including the noted causes and resulting effects under 2024-002. Due to the organizational pause at the end of 2024 and the transition period throughout 2025, this finding continued into the 2024 audit period. The Organization operated with significantly reduced staffing and limited capacity, which delayed the development of procurement policies addressing suspension and debarment requirements. Initial governance updates occurred during the 2025 Q4 Board meeting, where the Board approved a revised version of the By-Laws focused on correcting deficiencies in board structure and conflict-of-interest provisions. Procurement procedures recommended in this finding were not included in that initial revision but are scheduled for development and implementation as part of the 2026 rebuilding phase. Corrective Action taken in 2025: While no procurement-specific corrective action has yet been implemented, foundational updates to the By-Laws were approved at the 2025 Q4 Board meeting to address structural governance issues. These updates establish the basis for incorporating required procurement, suspension, and debarment procedures. The Operations Manager and Advisory Consultant have begun drafting updated procurement policies to ensure compliance with federal requirements. Corrective Action Planned for 2026: Draft procurement, suspension, and debarment policies will be completed and presented to the Board as a formal resolution in early 2026. Upon approval, these policies will be incorporated into the By-Laws and will take immediate effect. The Board has also approved the planned hiring of a consultant with Executive Director and strategy experience in 2026 to support policy implementation, training, staff alignment, and ongoing compliance review. These measures will ensure full compliance with procurement requirements throughout the 2026 operating year and beyond.

View Audit 379803

Finding 1168074 (2024-002)

Material Weakness 2024

Walnut Hills Redevelopment Foundation

OH

Reporting

Reference Number: 2024-002 Program: 21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS Condition: The December 31, 2023 reporting package dated November 7, 2025 was submitted to the Federal Audit Clearinghouse (FAC) in November 2025. Recommendation: Review total federal funding each year and e...

Reference Number: 2024-002 Program: 21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS Condition: The December 31, 2023 reporting package dated November 7, 2025 was submitted to the Federal Audit Clearinghouse (FAC) in November 2025. Recommendation: Review total federal funding each year and engage or amend auditor engagement letter as necessary to ensure a single audit is performed if federal funding received during the year exceeds the limit for single audit completion. Current Status: The recommendation will be adopted by June 2026. Management’s Response: Management understands the audit findings and the associated risks and will take the appropriate action to monitor the need for single audits in the future.

View Audit 379771

Finding 1168073 (2024-001)

Material Weakness 2024

Walnut Hills Redevelopment Foundation

OH

Material Weakness Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Reference Number: 2024-001 Internal control material weakness Program: 21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS Condition: The agreements to receive these grants and loan them out to a specific development project were signed in July and October 2024 for $648,718 and $525,000, respec...

Reference Number: 2024-001 Internal control material weakness Program: 21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS Condition: The agreements to receive these grants and loan them out to a specific development project were signed in July and October 2024 for $648,718 and $525,000, respectively. The funds for the July agreement of $648,718 were received by the entity and paid back out to the development project. The $648,718 was recorded to the general ledger twice. It was recorded once when the funds were received and paid out to the development project and a second time when the Organization was closings its books for the fiscal year. When the funds were paid out to the development, the funds were also incorrectly recorded as an expense instead of a loan receivable. Recommendation: The Organization should employ financial literate staff who are familiar with GAAP accounting to ensure financial transactions are recorded in accordance with current accounting standards. Also, the Organization should implement a process for a final detailed review of financial data when performing post-closing audit adjustments to ensure proper and complete capture of all transactions. Current Status: The recommendation is in process of being implemented. Management’s Response: Management understands the audit findings and the associated risks and will take the appropriate action to hire either staff or vendors with appropriate financial statement review skills and knowledge of GAAP. The organization will implement a process for a final detailed financial statement review before providing final yearend financial statements to the auditors.

View Audit 379771

Finding 1168068 (2024-002)

Material Weakness 2024

City of McKeesport

PA

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Reporting § 200.403

CONDITION: During the calendar year 2024, the City did not utilize a formal general ledger system of accounting to track the financial activity (financial position and results of operations) for several ‘Funds’ held at the City. The activity of these funds is either 1) maintained in spreadsheet fash...

CONDITION: During the calendar year 2024, the City did not utilize a formal general ledger system of accounting to track the financial activity (financial position and results of operations) for several ‘Funds’ held at the City. The activity of these funds is either 1) maintained in spreadsheet fashion similar to a checkbook used in personal finances, 2) recorded partially (expenses only with no revenue), or 3) not tracked at all. As these funds are not maintained using the City’s accounting software package, management does not have the ability to efficiently generate financial reports necessary to provide management with the proper fiscal oversight. This condition included the American Rescue Plan Act (ARPA) funding known as the Coronavirus State and Local Fiscal Recovery Fund. However, it should be noted that City personnel were able to prepare spreadsheets to document which expenditures were utilized to prepare the necessary quarterly reporting requirements to the Department of Treasury. This is a repeat finding (2023-002) from the prior year. CRITERIA: Prudent internal control procedures in the areas of general ledger management and financial reporting include maintaining a formal general ledger system of accounting to track the activity of all ‘Funds’ maintained by the City. In specific as it relates to federal programs, Section 2 CFR 200.403(g) of the Uniform Guidance requires that federal costs must be adequately documented which would include the maintaining of a formal general ledger system of accounting for all ‘Funds’ of the City. MANAGEMENT’S CORRECTIVE ACTION PLAN: Management of the City is continuing to assess the current workload and expertise of the City’s business office personnel in an effort to determine a feasible timeframe to continue the process of creating a formal general ledger system of accounting for all City ‘Funds’ that are not already entered into the software accounting system. The timeframe for completion of this review will occur during the first nine months of calendar year 2026 with the intention of having the City be in full compliance with Section 2 CFR 200.403(g) of the Uniform Guidance which requires federal costs to be adequately documented which would include the maintaining of a formal general ledger system of accounting for all ‘Funds’ of the City.

View Audit 379705

Finding 1168067 (2024-001)

Material Weakness 2024

City of McKeesport

PA

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Reporting § 200.403 § 200.516

CONDITION: During the calendar year 2024, the City did not record the necessary adjustments to the various ‘Fund’ general ledgers of the City to properly reconcile the balance sheet accounts, such as cash, receivables, payables, and payroll-related liabilities to the underlying supporting documentat...

CONDITION: During the calendar year 2024, the City did not record the necessary adjustments to the various ‘Fund’ general ledgers of the City to properly reconcile the balance sheet accounts, such as cash, receivables, payables, and payroll-related liabilities to the underlying supporting documentation available at the City (which includes reconciliations of cash prepared independently by City personnel but do not agree to amounts reported in the various general ledgers). This included ‘Funds” containing significant federal funding such as the City’s Community Development Block Grant (CDBG) Program and American Rescue Plan Act (ARPA) funding known as the Coronavirus State and Local Fiscal Recovery Fund.CONDITION (Continued): As a result, the financial position and results of operations as shown throughout the calendar year were inaccurately stated. However, it should be noted that the Community Development Department of the City and other City personnel maintain separate financial reporting for these federal funds, independent of the aforementioned ‘Fund’ general ledgers sufficient to ascertain the revenues and expenditures of the federal programs. This is a repeat finding (2023-001) for the prior year. CRITERIA: Prudent internal control procedures in the areas of general ledger management and financial reporting include the reconciliation of all general ledger account balances to underlying supporting documentation monthly with independent oversight and approval as part of the process. In specific as it relates to federal programs, Section 2 CFR 200.403(g) of the Uniform Guidance requires that federal costs must be adequately documented which would include the applicable general ledgers of the City. MANAGEMENT’S CORRECTIVE ACTION PLAN: Management of the City is continuing their review of the recommended options as presented by the Audit Firm’s recommendation for feasibility considering current manpower, expertise, and budgetary constraints. In addition, the City plans to ensure that written procedures for all accounting functions are implemented, reviewed and updated as necessary with the objective of ensuring that all balance sheet account balances are supported by the underlying documentation available at the City. The timeframe for completion of this review will occur during the first nine months of calendar year 2026 with the intention of having the City be in full compliance with Section 2 CFR 200.403(g) of the Uniform Guidance which requires federal costs to be adequately documented which would include the applicable general ledgers of the City.

View Audit 379705

Finding 1167989 (2024-001)

Material Weakness 2024

Northern Arizona Intergovernmental Public Transportation Authority

AZ

Material Weakness Reporting Internal Control / Segregation of Duties § 200.512

Finding Number: 2024‐001 Program Names/Assistance Listing Titles: Assistance Listing Numbers: Community Project Funding Congressionally Directed Spending 20.534 Federal Transit Cluster 20.507, 20.526 Contact Person: Megan Coons, Finance Director Anticipated Completion Date: March 31, 2026 Planned Co...

Finding Number: 2024‐001 Program Names/Assistance Listing Titles: Assistance Listing Numbers: Community Project Funding Congressionally Directed Spending 20.534 Federal Transit Cluster 20.507, 20.526 Contact Person: Megan Coons, Finance Director Anticipated Completion Date: March 31, 2026 Planned Corrective Action: The Authority will develop formal written procedures and standardized templates to support real‐time monitoring and reconciliation of accounting transactions and account balances. All finance staff will also attend formal training sessions sponsored by the Authority's accounting system vendor to ensure that all transactions are properly recorded in the system in accordance with GAAP. Lastly, the Authority will develop an audit timeline and checklist of year‐end procedures to ensure timely single audit completion.

View Audit 379652

Finding 1167969 (2024-003)

Material Weakness 2024

Montana Cancer Consortium

MT

Reporting § 200.512

#2024-003: Grant Program: Department of Health and Human Services – National Institutes for Health Research and Development Cluster – Cancer Control – Assistance Listing #93.599 – Untimely Filed Data Collection Form Corrective Action Plan: We agree with the recommendation. MCC has developed a Single...

#2024-003: Grant Program: Department of Health and Human Services – National Institutes for Health Research and Development Cluster – Cancer Control – Assistance Listing #93.599 – Untimely Filed Data Collection Form Corrective Action Plan: We agree with the recommendation. MCC has developed a Single Audit Policy to address this finding. Responsibilities of the MCC Director as outlined in the Single Audit Policy include the following: • Contract with an independent CPA firm to obtain the audit by the close of the MCC fiscal year. • Work with the bookkeeper to prepare the Schedule of Expenditures of Federal Awards. • Work with the CPA firm to ensure a timely submission of the audit. • Develop and maintain strong internal controls • Address any prior audit findings with a corrective action plan Timeline: This was implemented on December 1, 2025. Responsible Parties: MCC Director

View Audit 379617

Corrective Action Plans

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