Corrective Action Plans

Finding 1225349 (2025-002)

Material Weakness 2025

DC

Procurement, Suspension & Debarment § 200.317 § 200.320 § 200.327

FINDING 2025-002 Internal Control over Compliance and Compliance with Procurement, Suspension and Debarment (Significant Deficiency and Noncompliance) Responsive to finding: We agree with the finding. Corrective Action Plan: Gallaudet University will enhance its procurement procedures to ensure that...

FINDING 2025-002 Internal Control over Compliance and Compliance with Procurement, Suspension and Debarment (Significant Deficiency and Noncompliance) Responsive to finding: We agree with the finding. Corrective Action Plan: Gallaudet University will enhance its procurement procedures to ensure that price reasonableness analyses are performed and documented prior to entering into agreements with vendors in accordance with Uniform Guidance procurement requirements. The University will implement the following corrective actions: • Continue to monitor and review procurement policies and procedures for changes in applicable federal requirements and institutional practices. Procurement policies, procedures, and related documentation tools will be updated as necessary, and the standardized procurement checklist will be periodically reviewed and revised to ensure alignment with current procurement policies and Uniform Guidance standards. • Require supervisory review of procurement transactions to ensure all required procurement documentation, including price reasonableness determinations, is completed and retained prior to final approval of vendor agreements. • Provide training to procurement and departmental personnel involved in federally funded procurements regarding Uniform Guidance requirements and documentation standards. • Conduct periodic monitoring of procurement files to verify ongoing compliance with procurement policies, procedures, checklist requirements, and applicable federal regulations. These corrective actions will strengthen the University's internal controls over procurement activities and help ensure compliance with Uniform Guidance requirements related to procurement documentation and vendor selection. Individual(s) Responsible for Corrective Action Plan: Randi Vandegrift, Strategic Sourcing Manager John Skjeveland, Controller Estimated Completion Date: September 30, 2026

View Audit 408332

Finding 1225302 (2025-001)

Material Weakness 2025

Gallaudet University

DC

Reporting Significant Deficiency Internal Control / Segregation of Duties

FINDING 2025-001 Internal Control over Compliance and Compliance with Reporting (Significant Deficiency and Noncompliance) Responsive to finding: We agree with the finding. Corrective Action Plan: Gallaudet University will strengthen its procedures for collecting, maintaining, retaining, and reviewi...

FINDING 2025-001 Internal Control over Compliance and Compliance with Reporting (Significant Deficiency and Noncompliance) Responsive to finding: We agree with the finding. Corrective Action Plan: Gallaudet University will strengthen its procedures for collecting, maintaining, retaining, and reviewing supporting documentation for performance metrics reported to the U.S. Department of Education. Going forward, every reported metric will be supported by source documentation that is retained, readily accessible, and available for review upon request. The University will implement the following corrective actions: • Develop and document procedures identifying the source documentation required to support each reported performance metric. • Establish a centralized electronic repository for performance-metric documentation. Staff submitting a metric write-up will be required to submit the associated raw data file with it, so the source documentation is captured at the point of submission rather than reconstructed later. • Implement a review process requiring verification of supporting documentation prior to submission of reports. • Provide training to personnel responsible for collecting, compiling, and reporting performance metrics regarding documentation and record-retention requirements. • Periodically review supporting documentation to ensure compliance with Department of Education reporting requirements and federal record-retention standards. Together, these actions will address the documentation gap identified in the finding and establish a sustainable process to support future reporting cycles. Individual(s) Responsible for Corrective Action Plan: Caroline Kobek Pezzarossi, Dean of Curriculum, Outreach, Resources and Effectiveness Khadijat Rashid, Provost Estimated Completion Date: September 30, 2026

View Audit 408332

Finding 1225300 (2025-001)

Material Weakness 2025

Monroe County Board of Education

GA

School Nutrition Programs Subrecipient Monitoring § 200.303

FS 2025-001 Internal Controls at the Central Office Internal Control Impact: Significant Deficiency Repeat of Prior Year Finding: FS 2024-001, FS 2023-001 Description: The School District's accounting procedures at the Central Office are not sufficient to ensure prevention or timely detection of err...

FS 2025-001 Internal Controls at the Central Office Internal Control Impact: Significant Deficiency Repeat of Prior Year Finding: FS 2024-001, FS 2023-001 Description: The School District's accounting procedures at the Central Office are not sufficient to ensure prevention or timely detection of errors in key financial processes, specifically those related to journal entries, cash management, capital asset tracking, and payroll processing. Corrective Action Plans: Journal Entries - All journal entries will be printed out, which show the preparer, reviewer and filed in numerical order beginning with FY26. Cash and Cash Equivalents - All bank balances are reconciled to the financial statements and are signed and dated by both preparer and reviewer. Monthly School Bookkeeper meetings are being held to ensure that all school level accounts are reconciled as well. Capital Assets - A complete physical inventory including bus titles will be completed in August of 2026. Employee Compensation - SHBP invoices starting with January 2026 have been reconciled to payroll and benefit records prior to payment and any corrections needed have been submitted to SHBP. Estimated Completion Date: January 1, 2026 Contact Person: Chris Johnson, Director of Financial Services Telephone: 478-994-2031 Email: chrisJohnson@mcschools.org

View Audit 408330

Finding 1225273 (2025-002)

Material Weakness 2025

Windrose Health Network, INC

IN

Management concurs and will refine the sliding fee process. Additional training will be provided to ensure staff are equipped to monitor documentation timelines and apply discounts accordingly, and policy revisions will be considered to reflect current operational practices. Internal reviews will be...

Management concurs and will refine the sliding fee process. Additional training will be provided to ensure staff are equipped to monitor documentation timelines and apply discounts accordingly, and policy revisions will be considered to reflect current operational practices. Internal reviews will be conducted periodically to support consistent application across WindRose.

View Audit 408320

Finding 1225272 (2025-010)

Material Weakness 2025

MCCONE COUNTY

MT

Procurement, Suspension & Debarment Subrecipient Monitoring

NONCOMPLIANCE WITH GRANT TERMS AND CONDITIONS, COMMUNITY DEVELOPMENT BLOCK GRANTS/STATES PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII, AL No. 14.228, GRANT No. MT-CDBG-CV-22-05, YEAR ENDED JUNE 30, 2025 Name of contact person: County Commissioners Corrective Action: The county will work with all fut...

NONCOMPLIANCE WITH GRANT TERMS AND CONDITIONS, COMMUNITY DEVELOPMENT BLOCK GRANTS/STATES PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII, AL No. 14.228, GRANT No. MT-CDBG-CV-22-05, YEAR ENDED JUNE 30, 2025 Name of contact person: County Commissioners Corrective Action: The county will work with all future entities on grants by ensuring every entity is not debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in the contract by any government or agency or otherwise ineligible for participation in Federal assistance programs. The county will request written verification that any entity is eligible to participate and receive grant funding. The county will also use state and federal resources to ensure each entity can participate. Proposed Completion Date: Immediately

View Audit 408316

Finding 1225271 (2025-001)

Material Weakness 2025

Sangamon Valley Public Water District

IL

Subrecipient Monitoring Cash Management

1. Employee overseeing the deposits and disbursements has been removed from the position. 2. Write a cash management policy and procedures for receipt and disbursement of funds as well as a monitoring process for receipts (federal funds, grants) that need to be disbursed in a timely manner for Board...

1. Employee overseeing the deposits and disbursements has been removed from the position. 2. Write a cash management policy and procedures for receipt and disbursement of funds as well as a monitoring process for receipts (federal funds, grants) that need to be disbursed in a timely manner for Board approval.

View Audit 408314

Finding 1225270 (2025-005)

Material Weakness 2025

Henry C. Nevins Home, Inc.

MA

HUD Housing Programs Internal Control / Segregation of Duties Special Tests & Provisions

Federal Award Finding 2025-005 - Material Weakness, Material Non-Compliance - Special Tests and Provisions, Surplus Cash and Distributions to Owners or Affiliates Finding: During the fiscal year ended December 31, 2025, project management did not prepare or document a surplus cash calculation in acc...

Federal Award Finding 2025-005 - Material Weakness, Material Non-Compliance - Special Tests and Provisions, Surplus Cash and Distributions to Owners or Affiliates Finding: During the fiscal year ended December 31, 2025, project management did not prepare or document a surplus cash calculation in accordance with HUD requirements, nor did management implement controls to review, approve, or retain documentation supporting the required calculation. Recommendation: Management should establish and implement formal policies and procedures to ensure that surplus cash is independently calculated in accordance with HUD requirements and the applicable HUD Regulatory Agreement. Such procedures should include preparation of a documented surplus cash calculation at each required reporting period using HUD-prescribed criteria; Independent review and approval of the surplus cash calculation by appropriate management personnel or, where applicable, the court-appointed receiver; and retention of supporting documentation sufficient to demonstrate compliance with HUD restrictions on the use and distribution of project funds. Management should coordinate with the court-appointed receiver and HUD to ensure that surplus cash determinations are performed consistently and in compliance with program requirements going forward. Action Taken: Management acknowledges the finding related to the absence of an independently prepared and documented surplus cash calculation. During the fiscal year ended December 31, 2025, the Organization operated in an environment of financial distress, limited staffing resources, and evolving oversight responsibilities, which contributed to informal and undocumented procedures related to surplus cash determinations. As disclosed in the financial statements, the Organization became subject to a court-appointed receivership. Following the appointment of the receiver, responsibility for financial oversight, including compliance with HUD cash flow and surplus cash requirements, has transitioned to the receiver in coordination with HUD. The receiver and management are evaluating HUD requirements related to surplus cash calculation. Responsible Person: Paul Valentine, Receiver Target Completion Date: September 30, 2026 Status: Not started

View Audit 408309

Finding 1225268 (2025-004)

Material Weakness 2025

Henry C. Nevins Home, Inc.

MA

HUD Housing Programs Special Tests & Provisions Cash Management

Federal Award Finding 2025-004 - Material Weakness, Material Noncompliance - Special Tests and Provisions, Cash Receipts Finding: The Organization maintained cash balances in excess of federally insured limits in financial institutions that did not meet HUD's minimum GNMA rating requirements. Recomm...

Federal Award Finding 2025-004 - Material Weakness, Material Noncompliance - Special Tests and Provisions, Cash Receipts Finding: The Organization maintained cash balances in excess of federally insured limits in financial institutions that did not meet HUD's minimum GNMA rating requirements. Recommendation: The Organization should transfer excess cash balances to financial institutions that meet HUD's GNMA rating requirements or otherwise structure its cash holdings to ensure compliance with federal insurance limits and HUD custodial requirements. Action Taken: Nevins moved to this financial institution with the first HUD loan in 2015. This is a local bank that actively supports Nevin's mission in the community. Given Nevins’ current financial struggles, the balance in the bank seldom exceeds the $250,000 threshold. In addition, the receiver established its own account with East West Bank and was in the process of fully transitioning the operating account to East West Bank at the end of the fiscal year. Responsible Person: Paul Valentine, Receiver Target Completion Date: September 30, 2026 Status: Not started

View Audit 408309

Finding 1225266 (2025-003)

Material Weakness 2025

Henry C. Nevins Home, Inc.

MA

HUD Housing Programs Special Tests & Provisions Subrecipient Monitoring

Federal Award Finding 2025-003 - Material Weakness, Material Noncompliance - Special Tests and Provisions, Mortgage Reserve Fund, Equipment Replacement Reserve Fund, and Special Escrows Finding: During the audit period, Henry C. Nevins Home, Inc. did not make all required deposits into the reserve f...

Federal Award Finding 2025-003 - Material Weakness, Material Noncompliance - Special Tests and Provisions, Mortgage Reserve Fund, Equipment Replacement Reserve Fund, and Special Escrows Finding: During the audit period, Henry C. Nevins Home, Inc. did not make all required deposits into the reserve for replacement fund in accordance with the terms of the applicable HUD Regulatory Agreement. The required monthly reserve deposits were either not made or were made in amounts less than those required. Recommendation: We recommend that Henry C. Nevins Home, Inc., in coordination with the court-appointed receiver and HUD, establish procedures to ensure that reserve for replacement deposits are made timely and in accordance with the HUD Regulatory Agreement, or that appropriate waivers or modifications are obtained from HUD where compliance is not currently feasible. Action Taken: Management acknowledges the audit finding related to the failure to make required deposits into the reserve for replacement fund in accordance with the HUD Regulatory Agreement. As disclosed in the notes to the financial statements, during the audit period the Organization was subject to a court-appointed receivership effective September 12, 2025 and is in default under its HUD-insured mortgages. As part of the receivership, control over substantially all cash management and financial decision-making activities was assumed by the court-appointed receiver. Management believes that the conditions giving rise to this finding are directly related to liquidity constraints. Given the complexities of the receivership and regulatory environment, a specific timeline for remediation is not able to be determined. As a result of the loan default, the mortgage was assigned to the U.S. Department of Housing and Urban Development. Since the appointment of the Receiver, responsibility for cash management, financial oversight, and debt service planning has transitioned to the Receiver. The Receiver and the Organization are actively evaluating available options to address the loan default which includes marketing the Organization for a sale. Interim corrective actions include enhanced cashflow monitoring, prioritization of expenses required to continue operations, and ongoing communication with HUD regarding the sale process. Management believes that these actions will address the conditions identified and result in the satisfaction of the HUD loan. Responsible Person: Paul Valentine, Receiver Target Completion Date: September 30, 2026 Status: In process

View Audit 408309

Finding 1225265 (2025-002)

Material Weakness 2025

Henry C. Nevins Home, Inc.

MA

HUD Housing Programs Special Tests & Provisions Subrecipient Monitoring

Federal Award Finding 2025-002 - Material Weakness, Material Noncompliance - Special Tests and Provisions, Mortgage Status and Reserve for Replacements Finding: During the fiscal year, the Organization experienced ongoing financial distress and declining liquidity, which adversely affected its abili...

Federal Award Finding 2025-002 - Material Weakness, Material Noncompliance - Special Tests and Provisions, Mortgage Status and Reserve for Replacements Finding: During the fiscal year, the Organization experienced ongoing financial distress and declining liquidity, which adversely affected its ability to meet financial obligations as they became due. As a result, mortgage payments, including required principal, interest, mortgage insurance premiums, and escrow deposits, were not made in accordance with the loan and regulatory agreements. As of December 31, 2025, delinquent amounts totaled approximately $978 thousand. Recommendation: The Receiver and the Organization should work with HUD to develop and implement a formal workout or resolution plan, including enhanced cash-flow monitoring and debt service planning, to address the loan default and restore compliance with HUD debt service requirements. Action Taken: Management acknowledges the finding related to the failure to make required debt service payments under the HUD Section 232 and Section 241(a) insured mortgage loan agreements. The Organization experienced significant financial distress and constrained liquidity during the fiscal year, which limited its ability to remit required principal, interest, mortgage insurance premium, and escrow payments as they became due. As a result of the loan default, the mortgage was assigned to the U.S. Department of Housing and Urban Development. With the appointment of a Receiver over the Organization, responsibility for cash management, financial oversight, and debt service planning has transitioned to the Receiver. The Receiver is marketing the facility towards a sale in order to satisfy the outstanding loan balance with HUD. Interim corrective actions include enhanced cash-flow monitoring, prioritization of operational suppliers, and ongoing communication with HUD regarding the project's financial condition and sale status. Management believes that these actions will support progress towards stabilization and marketability of the Organization. Responsible Person: Paul Valentine, Receiver Target Completion Date: September 30, 2026 Status: In process

View Audit 408309

Finding 1225263 (2025-004)

Material Weakness 2025

Easter Seals of Greater Houston, Inc.

TX

Allowable Costs / Cost Principles Cash Management Matching / Level of Effort / Earmarking

Management has provided a template, which was reviewed and approved by the CFO in April 2026, to the AP Clerk without any roundings of the allocation percentages. Management will review the calculations between January 1 and April 2026 that were used for allocations and will correct any allocations ...

Management has provided a template, which was reviewed and approved by the CFO in April 2026, to the AP Clerk without any roundings of the allocation percentages. Management will review the calculations between January 1 and April 2026 that were used for allocations and will correct any allocations as necessary. Management will ensure the review of expenses include all calculations supporting the expense amounts. All these actions are effective January 1, 2026, and will be managed by the Chief Financial Officer.

View Audit 408306

Finding 1225261 (2025-001)

Material Weakness 2025

Transcen, Inc.

MD

Subrecipient Monitoring Reporting

Finding (2025-001): TransCen did not consistently ensure that FFATA reporting requirements for applicable federal subawards were completed accurately and/or within required timeframes. Corrective Action: TransCen has established procedures to support FFATA compliance. Corrective actions focus on rei...

Finding (2025-001): TransCen did not consistently ensure that FFATA reporting requirements for applicable federal subawards were completed accurately and/or within required timeframes. Corrective Action: TransCen has established procedures to support FFATA compliance. Corrective actions focus on reinforcing consistent application of these procedures and strengthening oversight. • Responsibility & Oversight: Grants and Contracts Manager will serve as FFATA Compliance Coordinator. Accounting will perform a secondary review to confirm timely and accurate reporting. • Standardized Procedures: Existing procedures will be formalized to include identification of reportable subawards, required data elements, and reporting deadlines. • Checklist & Tracking: A FFATA checklist will be used during subaward issuance, and a centralized tracking log will monitor reporting status, due dates, and completion. • Training: Staff involved in grants administration will receive targeted FFATA training and periodic refreshers. • Ongoing Monitoring: Management will perform quarterly reviews of subawards to ensure compliance and address any exceptions in a timely manner. Implementation Timeline: Effective immediately, fully implemented by August 1, 2026 Responsible Official: Ann Deschamps, Mid Atlantic ADA Director Management Oversight: Laura Owens, President

View Audit 408304

Finding 1225253 (2025-002)

Material Weakness 2025

Sherburne County

MN

Material Weakness Internal Control / Segregation of Duties

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Number: 93.778 Federal Award Identification Number and Year: S2505MN5ADM - 2025 Award Period: 2025 Type of Finding: • Material Weakness in Internal Control over Compliance Recomme...

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Number: 93.778 Federal Award Identification Number and Year: S2505MN5ADM - 2025 Award Period: 2025 Type of Finding: • Material Weakness in Internal Control over Compliance Recommendation: CLA recommend that the County implement sufficient internal control procedures to ensure properly documented review of all reports. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will implement the recommendation immediately. Name of the contact person responsible for corrective action plan: Loraine Rupp, Sherburne County Auditor-Treasurer Planned completion date for corrective action plan: Already corrected

View Audit 408288

Finding 1225252 (2025-001)

Material Weakness 2025

Sherburne County

MN

Significant Deficiency Internal Control / Segregation of Duties Special Tests & Provisions

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Number: 93.778 Federal Award Identification Number and Year: S2505MN5ADM - 2025 Award Period: 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance • ...

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Number: 93.778 Federal Award Identification Number and Year: S2505MN5ADM - 2025 Award Period: 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Recommendation: CLA recommend that the County implement sufficient internal control procedures to ensure LCTS payments are made within 30 days of receipt. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will implement the recommendation immediately. Name of the contact person responsible for corrective action plan: Loraine Rupp, Sherburne County Auditor-Treasurer Planned completion date for corrective action plan: Already corrected

View Audit 408288

Finding 1225251 (2025-002)

Material Weakness 2025

Rebuilding Together, Inc.

DC

Procurement, Suspension & Debarment § 200.318 § 200.320

Management will implement enhanced procurement controls to strengthen competition, documentation, and justification for procurements to ensure compliance with 2 CFR 200 and internal policy. Actions include: 1. Effective January 1, 2026, Rebuilding Together adopted a revised Procurement Policy that u...

Management will implement enhanced procurement controls to strengthen competition, documentation, and justification for procurements to ensure compliance with 2 CFR 200 and internal policy. Actions include: 1. Effective January 1, 2026, Rebuilding Together adopted a revised Procurement Policy that updates procurement thresholds and outlined the standard for non-competitive procurement, requiring that sole-source determinations meet one of the specific allowable criteria under 2 CFR §200.320(c). 2. Rebuilding Together will further update the Procurement Policy to require that for noncompetitive procurements, management will prepare and retain contemporaneous written justification in the form of a sole-source justification memo demonstrating that the procurement meets one of the allowable criteria under 2 CFR §200.320(c), supported by appropriate documentation such as market research or evidence of exclusivity. The sole-source justification memo will be reviewed and approved by a manager senior to the staff member leading the procurement before the determination is finalized. 3. Rebuilding Together has developed standardized Micro-Purchase and Small-Purchase Procurement Memo templates that require documentation, at the time of procurement, of vendor selection rationale, price/cost reasonableness, competitive quotes obtained (as applicable), conflict-of-interest certification, and debarment/suspension verification. 4. Rebuilding Together is finalizing a Speaker Procurement SOP, which provides speaker-specific procurement guidance in accordance with 2 CFR 200. 5. Relevant staff (Development, Development Operations, Network Advancement, Communications, Grant Operations, and Finance) will receive training on the revised Procurement Policy and Speaker Procurement SOP. Anticipated Completion Date: The revised Procurement Policy became effective January 1, 2026. Additional edits to the Policy will be made implemented by September 15, 2026. Finalization of the Speaker Procurement SOP and related staff training are anticipated to be completed by December 31, 2026. Responsible Contact Person: Emma Weltzer, Director, Development Operations & Federal Grants

View Audit 408287

Finding 1225247 (2025-001)

Material Weakness 2025

Rebuilding Together, Inc.

DC

Reporting Matching / Level of Effort / Earmarking § 200.328

Management has implemented enhanced procedures to strengthen the tracking, reconciliation, and reporting of recipient share (matching) contributions associated with federal awards under ALN 14.265, Rural Capacity Building for Community Development and Affordable Housing Grants. Actions include: 1. U...

Management has implemented enhanced procedures to strengthen the tracking, reconciliation, and reporting of recipient share (matching) contributions associated with federal awards under ALN 14.265, Rural Capacity Building for Community Development and Affordable Housing Grants. Actions include: 1. Updating the internal matching contribution tracking system to improve documentation and cumulative tracking of recipient share contributions by grant and reporting period. 2. Establishing a formal reconciliation process between supporting documentation, grant records, and amounts reported on the SF-425 to ensure both federal expenditures and applicable recipient share amounts are accurately reflected. 3. Implementing a pre-submission review checklist and control requiring verification that recipient share (matching) information has been evaluated, reconciled, and included on the SF-425, when applicable, prior to submission to the awarding agency. 4. Requiring supervisory review and approval of the completed SF-425 to confirm completeness, accuracy, and compliance with reporting requirements under 2 CFR §200.328 before certification and filing. 5. Updating internal grant reporting procedures and providing additional guidance to staff responsible for federal financial reporting regarding SF-425 reporting requirements and recipient share reporting expectations. Management will evaluate the SF-425 reports submitted during the audit period to determine whether amendments are necessary. If required, amended SF-425 reports will be submitted to accurately reflect recipient share (matching) contributions. Anticipated Completion Date: The enhanced controls were implemented during 2026 and will be operational for the preparation, review, and certification of the SF-425 for the reporting period ending June 30, 2026, and all future reporting periods. For the reports submitted before June 30, 2026, management will confirm with HUD by July 20 if they would like an amended report. If HUD request one, the amended report will be submitted by August 15. Responsible Contact: Lakia Goodman, Controller (preparation and reconciliation of recipient share reporting) Chris Perry Authorized SF-425 Signer/Certifying Official (final review and certification)

View Audit 408287

Finding 1225243 (2025-001)

Material Weakness 2025

Chinatown Manpower Project, INC

NY

Reporting

CMP will take the following actions to ensure timely submission in future years: •Submit the 2026 DCF within five (5) business days of receiving the final audit report. •Coordinate earlier with the external audit firm to establish mutually agreed-upon deadlines for key audit deliverables. •Implement...

CMP will take the following actions to ensure timely submission in future years: •Submit the 2026 DCF within five (5) business days of receiving the final audit report. •Coordinate earlier with the external audit firm to establish mutually agreed-upon deadlines for key audit deliverables. •Implement an internal calendar to track critical reporting dates and milestones, beginning with the FY2026 audit cycle. •Assign a dedicated staff member to monitor audit progress and communicate regularly with the audit team to avoid last-minute delays.

View Audit 408285

Finding 1225241 (2025-001)

Material Weakness 2025

Dreamkey Partners, Inc.

NC

Reporting Subrecipient Monitoring § 200.328

Finding 2025-001 Corrective Action Plan: Management acknowledges the reporting lapse identified and notes that all required semi-annual reports have since been submitted as of the report date. The delay appears to have been an isolated oversight rather than a systemic breakdown in compliance. To enh...

Finding 2025-001 Corrective Action Plan: Management acknowledges the reporting lapse identified and notes that all required semi-annual reports have since been submitted as of the report date. The delay appears to have been an isolated oversight rather than a systemic breakdown in compliance. To enhance controls over grant reporting and prevent recurrence, the Organization has implemented the following corrective actions: Established a formal grant reporting calendar that includes all required reporting deadlines for each federal award. Assigned clear responsibility for report preparation and submission to specific personnel within the finance function. Implemented a secondary review process whereby management monitors upcoming deadlines and confirms timely submission of reports. Incorporated periodic compliance check-ins to ensure adherence to grant reporting requirements throughout the year. Management believes these measures strengthen oversight and will ensure timely preparation and submission of all required reports going forward. Anticipated Completion Date: December 31, 2026

View Audit 408281

Finding 1225238 (2025-001)

Material Weakness 2025

FosterHub

OH

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.213

2025-001 – FosterHub did not have a process to determine if vendors were suspended or debarred from receiving federal funds Auditor’s Recommendation: It is recommended that FosterHub develop and implement a suspension and debarment procedure to review the eligibility of vendors before entering into ...

2025-001 – FosterHub did not have a process to determine if vendors were suspended or debarred from receiving federal funds Auditor’s Recommendation: It is recommended that FosterHub develop and implement a suspension and debarment procedure to review the eligibility of vendors before entering into contracts. Training should be provided to all relevant staff to ensure awareness and compliance with federal requirements. Additionally, periodic monitoring and internal audits should be conducted to ensure adherence to the established procedures. Views of Responsible Officials and Planned Corrective Actions:Management acknowledges the finding and agrees with the recommendation. FosterHub has already developed and implemented a formal suspension and debarment procedure in early 2026. Training sessions have been conducted for all procurement staff to ensure understanding and compliance with the new procedure. Furthermore, periodic reviews will be instituted to monitor adherence to these requirements and to prevent the recurrence of this issue.

View Audit 408267

Finding 1225237 (2025-001)

Material Weakness 2025

The Children's Hospital of Alabama

AL

Procurement, Suspension & Debarment § 200.320

The Company will enhance the existing procurement policy for grant-funded purchases to align with federal procurement guidelines. Price quotations and comparisons will be obtained from an adequate number of vendors and such quotations and comparisons will be retained to support vendor selection. Ant...

The Company will enhance the existing procurement policy for grant-funded purchases to align with federal procurement guidelines. Price quotations and comparisons will be obtained from an adequate number of vendors and such quotations and comparisons will be retained to support vendor selection. Anticipated Completion Date: 12/31/2026 Responsible Contact Person: Rebecca Horn, Controller

View Audit 408265

Finding 1225235 (2025-001)

Material Weakness 2025

Housing Authority of Salt Lake City

UT

HUD Housing Programs

Action Taken: The Management of the Authority agrees with the findings; we will implement improved internal controls to ensure consistent compliance with regulatory requirements. We plan to continue to conduct file audits, standardize electronic document management procedures, expand use of Yardi co...

Action Taken: The Management of the Authority agrees with the findings; we will implement improved internal controls to ensure consistent compliance with regulatory requirements. We plan to continue to conduct file audits, standardize electronic document management procedures, expand use of Yardi compliance tools, and enhance quality control reviews. Strengthened compliance through revised checklists, increased file auditing, targeted staff training, expanded access to procedures and resources, enhanced supervisory oversight, and quarterly monitoring of utility allowance anomalies to improve consistency, accuracy, and adherence to HUD requirements. The HCV Director is the responsible party, and controls will be in place by the end of the December 31, 2026 fiscal year.

View Audit 408260

Finding 1225234 (2025-001)

Material Weakness 2025

Advancing Connecticut Together, Inc. and Subsidiary

CT

Subrecipient Monitoring Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Management has strengthened internal controls over payroll processing and timecard approvals. Effective January 1, 2026, prior to processing each payroll, the Organization downloads a complete file of timesheet hours by employee, hour type, and cost center and compares the data against the contractu...

Management has strengthened internal controls over payroll processing and timecard approvals. Effective January 1, 2026, prior to processing each payroll, the Organization downloads a complete file of timesheet hours by employee, hour type, and cost center and compares the data against the contractual allocation plan. Any exception or deviation identified through this review is routed to the responsible supervisor for resolution before payroll is processed. Supervisors are responsible for correcting and approving timecard errors or documenting confirmation that the timesheet accurately reflects the work performed. This process is designed to ensure that timecards are reviewed, approved, and retained in support of payroll costs charged to federal awards. Management will continue to evaluate this control and implement enhancements as needed as part of its ongoing commitment to continuous quality improvement.

View Audit 408259

Finding 1225231 (2025-004)

Material Weakness 2025

CITY OF RUSH CITY

MN

Procurement, Suspension & Debarment

Disagreement with Audit Finding: None Actions Planned in Response to Finding: The City will ensure all future contracts exceeding the established limits will be solicited by public notice, unless an exception applies to the particular contract. Official Responsible for Ensuring CAP: Amy Mell, City A...

Disagreement with Audit Finding: None Actions Planned in Response to Finding: The City will ensure all future contracts exceeding the established limits will be solicited by public notice, unless an exception applies to the particular contract. Official Responsible for Ensuring CAP: Amy Mell, City Administrator Planned Completion Date for CAP: December 31, 2026 Plan to Monitor Completion of CAP: City Council

View Audit 408258

Finding 1225230 (2025-003)

Material Weakness 2025

CITY OF RUSH CITY

MN

Internal Control / Segregation of Duties

Corrective Action Plan (CAP) Disagreement with Audit Finding: None Actions Planned in Response to Finding: The City is aware of the limited segregation of duties and will continue to review internal controls and make changes when they can be made. Official Responsible for Ensuring CAP: Amy Mell, Cit...

Corrective Action Plan (CAP) Disagreement with Audit Finding: None Actions Planned in Response to Finding: The City is aware of the limited segregation of duties and will continue to review internal controls and make changes when they can be made. Official Responsible for Ensuring CAP: Amy Mell, City Administrator Planned Completion Date for CAP: December 31, 2026 Plan to Monitor Completion of CAP: City Council

View Audit 408258

Finding 1225229 (2025-002)

Material Weakness 2025

CITY OF RUSH CITY

MN

Internal Control / Segregation of Duties

Corrective Action Plan (CAP) Disagreement with Audit Finding: None Actions Planned in Response to Finding: The City is aware of the lack of expertise to ensure all disclosures required by GAAP are included in the financial statements, however, the City will review the notes for accuracy and compare ...

Corrective Action Plan (CAP) Disagreement with Audit Finding: None Actions Planned in Response to Finding: The City is aware of the lack of expertise to ensure all disclosures required by GAAP are included in the financial statements, however, the City will review the notes for accuracy and compare balances in the financial report to the general ledger and other City reports prior to issuance of the financial statements. Official Responsible for Ensuring CAP: Amy Mell, City Administrator Planned Completion Date for CAP: December 31, 2026 Plan to Monitor Completion of CAP: City Council

View Audit 408258

Corrective Action Plans

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