Corrective Action Plans

Finding 1166105 (2025-002)

Material Weakness 2025

Housing Authority of the City of Paterson

NJ

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

Finding 2025-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Catalog Numbers: 14.871 & 14.EHV Noncompliance – N. Special Tests and Provisions – Housing Quality Standards Non Compliance Material to the Financial Statements: ...

Finding 2025-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Catalog Numbers: 14.871 & 14.EHV Noncompliance – N. Special Tests and Provisions – Housing Quality Standards Non Compliance Material to the Financial Statements: No Significant deficiency in Internal Control over Compliance for Special Tests and Provisions Finding 2025-002 (continued) Criteria: Housing Quality Standards Inspections. The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). These inspection reports are required to be maintained and available for examination at the time of audit. For units that fail inspection the PHA must correct all life threatening HQS deficiencies within 24 hours and all other deficiencies within 30 days. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were units that were not inspected within the annual inspection period. Additionally, there were units that failed inspections and did not pass reinspection within 30 days without penalty. Context: There are approximately two thousand seven hundred fifty six (2,756) units. Of a sample size of thirty seven (37) files, three (3) annual inspections, were not completed in a timely manner. Additionally, there are approximately one thousand two hundred forty seven (1,247) units with failed inspections. Of a sample size of twenty five (25) units with failed inspections, four units (4) unit did not pass reinspection within 30 days. Housing assistance payments were not abated nor was the tenant relocated. Our sample size is statistically valid. Cause: The Authority did not perform timely annual inspections and follow up to failed inspections in accordance with program requirements. Effect: The Housing Voucher Cluster Program is in non-compliance with the with the special tests and provisions type of compliance related to HQS inspections. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance related to HQS inspections in accordance with the Uniform Guidance and the compliance supplement. Authority's Response: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Housing Voucher Cluster to ensure that established internal control policies related to HQS inspections are being followed on a timely basis. Views of responsible officials and planned corrective action: Ms. Irma Gorham, Executive Director is responsible to remedy the deficiency by March 31, 2026.

View Audit 376899

Finding 1166104 (2025-001)

Material Weakness 2025

Housing Authority of the City of Paterson

NJ

HUD Housing Programs Internal Control / Segregation of Duties Eligibility

Finding 2025-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Assistance Listing Number: 14.871 & 14.EHV Noncompliance – E. Eligibility - Tenant Files Non Compliance Material to the Financial Statements: Yes Material weakness in Int...

Finding 2025-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Assistance Listing Number: 14.871 & 14.EHV Noncompliance – E. Eligibility - Tenant Files Non Compliance Material to the Financial Statements: Yes Material weakness in Internal Control over Compliance for Eligibility Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). Finding 2025-001 (continued) Condition: Based upon inspection of the Authority’s files and on discussion with management, there were documents that were unavailable for examination at the time of audit and the Authority included income that was miscalculated during the annual recertification. Context: Of a sample size of thirty-seven (37) tenant files, the following information was unavailable for examination at the time of audit: • Original application was missing in one (1) file • Citizenship declaration was missing in one (1) file • Signed lease was missing in one (1) file • Verification of income was missing in four (4) files • HUD form 50058 was not timely filed for one (1) file In addition, three (3) tenants' annual recertifications (HUD-50058 form) included income that was miscalculated. Our sample size is statistically valid. Cause: There is a material weakness in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not properly considered and designed a system of internal controls that reasonably assures the program is in compliance. Effect: The Housing Voucher Cluster program is in material non-compliance with the eligibility type of compliance related to the maintenance of tenant files. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure eligibility compliance with the Uniform Guidance and the compliance supplement. Authority Response: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Housing Voucher Cluster Program to ensure that established internal control policies are being followed on a timely basis. Views of responsible officials and planned corrective action: Ms. Irma Gorham, Executive Director is responsible to remedy the deficiency by March 31, 2026.

View Audit 376899

Finding 1166103 (2025-001)

Material Weakness 2025

Ken-Crest Housing De 2003, Inc.

PA

Special Tests & Provisions HUD Housing Programs Significant Deficiency

Person Responsible for Corrective Action: Chief Financial Officer CORRECTIVE ACTION PLAN U.S. Department of Housing and Urban Development Ken-Crest Housing DE 2003, Inc. ("the Organization") respectfully submits the following corrective action plan for the report dated December 3, 2025. Name and add...

Person Responsible for Corrective Action: Chief Financial Officer CORRECTIVE ACTION PLAN U.S. Department of Housing and Urban Development Ken-Crest Housing DE 2003, Inc. ("the Organization") respectfully submits the following corrective action plan for the report dated December 3, 2025. Name and address of independent public accounting ﬁrm: WithumSmith+Brown, P.C. 1835 Market Street, 3rd Floor Philadelphia, PA, 19103 Audit period: July 1, 2024 – June 30, 2025 The ﬁndings from the June 30, 2025 schedule of ﬁndings and questioned costs are discussed below. The ﬁndings are numbered consistently with the number assigned in the schedule. Signiﬁcant Deﬁciency-Special Tests and Provisions – Project Funds Finding 2025-001 – Project funds are not held in an interest-bearing account. This is a repeat finding from June 30, 2024 (Finding 2004-001). 2025-001 Recommendation: We recommend that the Corporation utilize an interest-bearing account for project funds in accordance with HUD requirements. Action Taken: Although Ken-Crest Housing Del II, Inc. did not use an interest-bearing account for project funds during the year ended June 30, 2025, in July 2025, management opened an interest-bearing account and all Project funds were transferred into that account. Date of Completion: July 2025 Follow up on Prior Year’s Findings and Questioned Costs: Finding 2024-001 was not resolved during 2025, therefore, it has been reported as finding 2025-001 for the year ended June 30, 2025. In July 2025, management resolved this finding as all Project funds were transferred into an interest-bearing account. If the U.S. Department of Housing and Urban Development has questions regarding this plan, please contact Arthur Anderson, CFO at Arthur.anderson@kencrest.org.

View Audit 376898

Finding 1166101 (2025-001)

Material Weakness 2025

Ken-Crest Housing PA 99, Inc.

PA

Special Tests & Provisions HUD Housing Programs Significant Deficiency

Person Responsible for Corrective Action: Chief Financial Officer CORRECTIVE ACTION PLAN U.S. Department of Housing and Urban Development Ken-Crest Housing PA 99, Inc. ("the Organization") respectfully submits the following corrective action plan for the report dated December 3, 2025. Name and addre...

Person Responsible for Corrective Action: Chief Financial Officer CORRECTIVE ACTION PLAN U.S. Department of Housing and Urban Development Ken-Crest Housing PA 99, Inc. ("the Organization") respectfully submits the following corrective action plan for the report dated December 3, 2025. Name and address of independent public accounting ﬁrm: WithumSmith+Brown, P.C. 1835 Market Street, 3rd Floor Philadelphia, PA, 19103 Audit period: July 1, 2024 – June 30, 2025 The ﬁndings from the June 30, 2025 schedule of ﬁndings and questioned costs are discussed below. The ﬁndings are numbered consistently with the number assigned in the schedule. Signiﬁcant Deﬁciency-Special Tests and Provisions – Project Funds Finding 2025-001 – Project funds are not held in an interest-bearing account. This is a repeat finding from June 30, 2024 (Finding 2004-001). 2025-001 Recommendation: We recommend that the Corporation utilize an interest-bearing account for project funds in accordance with HUD requirements. Action Taken: Although Ken-Crest Housing Del II, Inc. did not use an interest-bearing account for project funds during the year ended June 30, 2025, in July 2025, management opened an interest-bearing account and all Project funds were transferred into that account. Date of Completion: July 2025 Follow up on Prior Year’s Findings and Questioned Costs: Finding 2024-001 was not resolved during 2025, therefore, it has been reported as finding 2025-001 for the year ended June 30, 2025. In July 2025, management resolved this finding as all Project funds were transferred into an interest-bearing account. If the U.S. Department of Housing and Urban Development has questions regarding this plan, please contact Arthur Anderson, CFO at Arthur.anderson@kencrest.org.

View Audit 376897

Finding 1166099 (2025-002)

Material Weakness 2025

Lakefront Management Authority

LA

Reporting Matching / Level of Effort / Earmarking Subrecipient Monitoring § 200.502

The Authority will consider implementing the recommendation. The Authority is actively working on rectifying the finding.

View Audit 376868

Finding 1166017 (2025-001)

Material Weakness 2025

Wheeler Clinic, Inc.

CT

Reporting Significant Deficiency Internal Control / Segregation of Duties

Wheeler Clinic, Inc. has reviewed the current approval processes. As of October 9, 2025, Wheeler Clinic, Inc. has formally implemented a process change removing any universal approval practices effective immediately. Wheeler Clinic, Inc. has also implemented a process that requires all managers/supe...

Wheeler Clinic, Inc. has reviewed the current approval processes. As of October 9, 2025, Wheeler Clinic, Inc. has formally implemented a process change removing any universal approval practices effective immediately. Wheeler Clinic, Inc. has also implemented a process that requires all managers/supervisors to authorize timesheets by a designated time on the subsequent Monday of the payroll cycle prior to payroll processing in order for payroll to be processed.

View Audit 376842

Finding 1165916 (2025-002)

Material Weakness 2025

Pcc Community Wellness Center

IL

Subrecipient Monitoring

Recommendation: Management should consider increasing the frequency of its self-reviews of sliding fee encounters, increasing the frequency of when patient portal updates are being reviewed and approved, and/or provide additional training for front desk staff regarding the collection and verificatio...

Recommendation: Management should consider increasing the frequency of its self-reviews of sliding fee encounters, increasing the frequency of when patient portal updates are being reviewed and approved, and/or provide additional training for front desk staff regarding the collection and verification of patient information for each patient. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: See matrix below Name(s) of the contact person(s) responsible for corrective action: Hiren Patel, CFO Planned completion date for corrective action plan: See matrix below Finding 2025-002 / ACTION STEP 1 / ACTION STEP 2 / ACTION STEP 3 / ACTION STEP 4 Assigned / RCM Leaders / Executive Leaders / Patient Care Reps (PCRs) / Practice Managers / Enrollment Specialist/RCM Leaders Resources needed / Annual Federal Poverty Level (FPL) update issued no later than February of each year, given by federal government / Supporting financial documentation for all patients/applications / Athena (EHR system) / Audit tracking tools, EHR reports Actions to be taken / Audit EHR system to ensure timely update by EHR each year; updated internal QRG and distribute to Operations front-staff leaders and Compliance Update patient level amounts based on approval by Executive Leaders- as needed / Complete review of supporting financial documentation for each patient/application Upload documentation in EHR to support approval/disapproval-update EHR accordingly 85% collections of patient levels at time of service / Practice Manager Audits 25 SFS claims to ensure all documentation has been received, uploaded and reviewed accurately / Enrollment Specialist reviews patient account during self-pay collection efforts for all that have outstanding balances; ensures all have supporting documents aligning with approval, notifies RCM leaders monthly of inaccurate findings RCM Leaders audit 50-60 accounts quarterly to cover all sites Progress indicated at benchmark / Implement workflow / Implement workflow / Implement **NEW**Workflow / Implement workflow Completion date / February of each year / February 2026 / February 2026 / February 2026 Evidences of improvement / Reporting to ensure alignment / Monthly audit / Monthly audit / Monthly/Quarterly audit

View Audit 376823

Finding 1165914 (2025-001)

Material Weakness 2025

School District U-46

IL

Internal Control / Segregation of Duties

The District will review year-end adjustments as part of the audit preparation process and work to reduce the number of entries proposed by the auditors and prepare fully adjusted financial statements prior to audit fieldwork. The District is aware and will be reviewing and amending monthly and year...

The District will review year-end adjustments as part of the audit preparation process and work to reduce the number of entries proposed by the auditors and prepare fully adjusted financial statements prior to audit fieldwork. The District is aware and will be reviewing and amending monthly and year-end procedures.

View Audit 376820

Finding 1165913 (2025-001)

Material Weakness 2025

Natchitoches Parish Housing Authority

LA

HUD Housing Programs

HOUSING AUTHORITY OF NATCHITOCHES PARISH, LOUISIANA CORRECTIVE ACTION PLAN YEAR ENDED JUNE 30, 2025 NATCHITOCHES PARISH HOUSING AUTHORITY 525 4th St. Natchitoches, LA 71457 Phone No. (318) 357-0553 Fax No. (318) 352-2086 Corrective Action Plan Finding: Finding 2025-001-Administrative Equity Deficit,...

HOUSING AUTHORITY OF NATCHITOCHES PARISH, LOUISIANA CORRECTIVE ACTION PLAN YEAR ENDED JUNE 30, 2025 NATCHITOCHES PARISH HOUSING AUTHORITY 525 4th St. Natchitoches, LA 71457 Phone No. (318) 357-0553 Fax No. (318) 352-2086 Corrective Action Plan Finding: Finding 2025-001-Administrative Equity Deficit, and Related Large Interfund Payable Condition: At June 30, 2025, the Housing Choice Voucher (HCV) Fund owes the General Fund $1 Corrective Action Planned: I am Rhonda Kay, Executive Director and Designated Person to answer this finding. We will carefully review them again, as the auditor recommends. Person responsible for corrective action: Rhonda Kay, Executive Director Telephone: (318) 357-0553 Housing Authority of Natchitoches Parish Fax: (318) 352-2086 525 4th St Natchitoches, LA 71457 Anticipated Completion Date: June 30, 2026

View Audit 376818

Finding 1165912 (2025-002)

Material Weakness 2025

Otto-Eldred School District

PA

Internal Control / Segregation of Duties Cash Management

Adjusting Journal Entries, Required Disclosures, and Draft Financial Statements, Year ended June 30, 2025. Auditor's Recommendation: Although auditors may continue to provide such assistance both now and, in the future, under the new pronouncement, the District should continue to review and accept b...

Adjusting Journal Entries, Required Disclosures, and Draft Financial Statements, Year ended June 30, 2025. Auditor's Recommendation: Although auditors may continue to provide such assistance both now and, in the future, under the new pronouncement, the District should continue to review and accept both propsed adjusting journal entries and footnore disclosures, along with the draft financial statements. District's Response: The District has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgements based on these financial statements.

View Audit 376816

Finding 1165891 (2025-001)

Material Weakness 2025

Shenandoah Valley School District

PA

Internal Control / Segregation of Duties School Nutrition Programs

Corrective Action Plan The Shenandoah Valley School District respectfully submits the following corrective action plan for the year ended June 30, 2025. The findings from the Single Audit Report Year Ended June 30, 2025 included in the schedule of findings and questioned costs are discussed below. F...

Corrective Action Plan The Shenandoah Valley School District respectfully submits the following corrective action plan for the year ended June 30, 2025. The findings from the Single Audit Report Year Ended June 30, 2025 included in the schedule of findings and questioned costs are discussed below. Finding 2025-001: Activities Allowed – Child Nutrition Cluster Contact Person: Anthony Demalis, Business Manager Recommendation: The District should follow its established internal control procedures over activities allowed requirements. Action: Since this was an inadvertent clerical error, District will continue to review its’ internal control procedures over payroll and established procedures to ensure employee pay rates show signs of approval prior to payroll being processed. Date for Completion: December 1, 2025

View Audit 376814

Finding 1165886 (2025-002)

Material Weakness 2025

Huntingdon Area School District

PA

Material Weakness School Nutrition Programs Internal Control / Segregation of Duties

Finding 2025-002 Child Nutrition Cluster #10.555 & #10.553 Condition: The District did not have internal control over compliance procedures designed and implemented for the compliance of Paid Lunch Equity requirements. Views of Responsible Officials: The district's Business Manager is the responsibl...

Finding 2025-002 Child Nutrition Cluster #10.555 & #10.553 Condition: The District did not have internal control over compliance procedures designed and implemented for the compliance of Paid Lunch Equity requirements. Views of Responsible Officials: The district's Business Manager is the responsible official for federal programs. The Business Manager stated that they understand and agree with the finding. Planned Corrective Action: A documented process will be designed and implemented for the review of the Paid Lunch Equity calculation. Person Responsible for Corrective Action Plan: Business Manager Anticipated Completion Date: January 2, 2026

View Audit 376810

Finding 1165883 (2025-001)

Material Weakness 2025

Friends of the North Country, Inc.

NY

Internal Control / Segregation of Duties

Name of auditee: Friends of the North Country, Inc. TIN: 14-1626314 Name of audit firm: EFPR Group, CPAs, PLLC Period covered by audit: March 31, 2025 CAP prepared by: Crystal Narducci Executive Director (518) 293-5045 Current Finding on the Schedule of Findings and Questioned Costs and Recommendati...

Name of auditee: Friends of the North Country, Inc. TIN: 14-1626314 Name of audit firm: EFPR Group, CPAs, PLLC Period covered by audit: March 31, 2025 CAP prepared by: Crystal Narducci Executive Director (518) 293-5045 Current Finding on the Schedule of Findings and Questioned Costs and Recommendations (1) Finding 2025-001 (a) Comments on the findings and recommendation - Management agrees with the finding. Management also agrees with the recommendation, please see below for action taken. (b) Action taken - Management has certified and submitted the Form SF-SAC to the Federal Audit Clearinghouse for the year ended March 31, 2024 on February 21, 2025. Management will submit the Form SF-SAC to the Federal Audit Clearinghouse within 30 days after the receipt of the auditor’s report for future submissions.

View Audit 376804

Finding 1165874 (2025-003)

Material Weakness 2025

City of Elizabeth City

NC

Procurement, Suspension & Debarment

Training for grant manager and all employees of the purchasing division will be mandatory. Grant manager to review all City grants, ensuring that the City complies with each grant agreement's terms. Purchasing Manager will review current purchase order procedures to ensure purchase orders are not ap...

Training for grant manager and all employees of the purchasing division will be mandatory. Grant manager to review all City grants, ensuring that the City complies with each grant agreement's terms. Purchasing Manager will review current purchase order procedures to ensure purchase orders are not approved when formal contracts are required.

View Audit 376797

Finding 1165867 (2025-002)

Material Weakness 2025

State of Hawaii Department of the Attorney General

HI

Views of Responsible Officials and Planned Corrective Action

View Audit 376771

Finding 1165867 (2025-002)

Material Weakness 2025

State of Hawaii Department of the Attorney General

HI

The HCJDC will add to its subrecipients procedures to verify an active SAM.gov registration and that the