Corrective Action Plans

Finding 1227373 (2025-005)

Material Weakness 2025

SOLAR FAITHFUL

MI

Procurement, Suspension & Debarment Subrecipient Monitoring Allowable Costs / Cost Principles § 200.214

2025-005 – Lack of Documentation for SAM.gov Exclusion Checks Auditor Description of Condition and Effect. Although the Organization has processes in place to cover these areas, and completes SAM.gov exclusion checks, the Organization did not retain documentation to support that the exclusion checks...

2025-005 – Lack of Documentation for SAM.gov Exclusion Checks Auditor Description of Condition and Effect. Although the Organization has processes in place to cover these areas, and completes SAM.gov exclusion checks, the Organization did not retain documentation to support that the exclusion checks were performed for vendors. As a result, there is no evidence that the Organization verified whether these parties were suspended or debarred prior to entering covered transactions. Auditor Recommendation. We recommend that the Organization retain evidence that SAM.gov exclusion checks are being completed for vendors to document that vendors are not suspended or debarred prior to entering covered transactions. Corrective Action. The Organization will begin retaining documentation for its SAM.gov exclusion checks that it completes for vendors to verify whether these parties were suspended or debarred prior to entering covered transactions. Responsible Person. Rob Rafson, Executive Director Anticipated Completion Date: December 2026

View Audit 409461

Finding 1227368 (2025-001)

Material Weakness 2025

Housing Initiatives, INC

WI

Internal Control / Segregation of Duties Reporting Equipment & Real Property Management

2025-001 Financial Reporting – Material Adjustments Criteria: Internal controls over financial reporting should be designed and implemented to ensure that financial statements are free from material misstatement, whether due to error or fraud, and that such misstatements are prevented or detected an...

2025-001 Financial Reporting – Material Adjustments Criteria: Internal controls over financial reporting should be designed and implemented to ensure that financial statements are free from material misstatement, whether due to error or fraud, and that such misstatements are prevented or detected and corrected on a timely basis. Condition: During the audit, material audit adjustments were proposed and accepted by management. The adjustments were necessary to correct material misstatements in the financial statements that had not been identified by the organization’s internal control processes. Significant adjustments included: • Recording loan forgiveness, which corrected the overstatement of liabilities and understatement of revenues • Reclassifying HOME program assistance from revenue to deferred loan liability, which corrected the overstatement of revenues and changes in net assets and the understatement of liabilities • Reclassifying development costs from expenses to property and equipment, which corrected the understatement of assets and overstatement of expenses. Cause: The Organization’s internal control processes did not identify or correct these misstatements prior to the audit. This suggests certain review and reconciliation procedures may not be operating effectively. Effect: Financial statements generated from the accounting system and provided to the board may contain error(s), which could potentially affect decision-making and oversight. Auditor’s Recommendation: We recommend that management review and enhance its financial reporting processes, including implementing more robust review procedures and reconciliations, to help ensure that misstatements are identified and corrected prior to the audit. Auditee’s Response: Management agrees with this finding and agrees with the recommendation. Management will evaluate current procedures and implement improvements to strengthen the accuracy and completeness of financial reporting. Contact Person: Brad Hinkfuss Anticipated Completion: December 31, 2026

View Audit 409457

Finding 1227364 (2025-002)

Material Weakness 2025

Town of Highgate, Vermont

VT

Reporting Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.328

The Town of Highgate has endured a significant amount of turnover in the Town Administrator's role. This reporting was a task of the Town Administrator. The Town Treasurer was unaware that the SF-425 reports for the Town's active grant awards were not being filed in a timely fashion. The newly appoi...

The Town of Highgate has endured a significant amount of turnover in the Town Administrator's role. This reporting was a task of the Town Administrator. The Town Treasurer was unaware that the SF-425 reports for the Town's active grant awards were not being filed in a timely fashion. The newly appointed Town Administrator has been made aware we are required to file the SF-425 when a grant award mandates the submission. Corrective action has began, the Town Administrator and Treasurer have been working together to get in compliance with our required reporting across all State and Federal Agencies that have awarded the Town grant funds. Trainings have taken place and the newly hired Administrator is aware of the required reporting and is able to perform this task on time when required.

View Audit 409454

Finding 1227351 (2025-002)

Material Weakness 2025

BOSCOBEL HOUSING AUTHORITY

WI

Reporting Internal Control / Segregation of Duties

Corrective Action Planned: The material misstatements detected as a result of audit procedures were corrected by management. The Authority will review all adjusting entries posted and make all such necessary adjustments in the future. The Executive Director will continue to monitor all financial act...

Corrective Action Planned: The material misstatements detected as a result of audit procedures were corrected by management. The Authority will review all adjusting entries posted and make all such necessary adjustments in the future. The Executive Director will continue to monitor all financial activity and adjust account balances as needed throughout the year and at year end to prevent misstatements. Completion Date: December 31, 2026

View Audit 409432

Finding 1227350 (2025-001)

Material Weakness 2025

BOSCOBEL HOUSING AUTHORITY

WI

Internal Control / Segregation of Duties

Corrective Action Planned: Due to the Authority's size, it is cost-prohibitive and impractical to achieve the ideal level of segregation of duties. The Authority has implemented as many controls and segregation of duties as practically possible for an organization of this size. Completion Date: Ongo...

Corrective Action Planned: Due to the Authority's size, it is cost-prohibitive and impractical to achieve the ideal level of segregation of duties. The Authority has implemented as many controls and segregation of duties as practically possible for an organization of this size. Completion Date: Ongoing

View Audit 409432

Finding 1227347 (2025-013)

Material Weakness 2025

Wittenberg University

OH

Student Financial Aid Reporting Subrecipient Monitoring

Condition Summary: The institution's procedures and controls for determining and reporting withdrawal dates to NSLDS were not operating effectively to ensure that the actual effective date of withdrawal was reported accurately and that enrollment status changes were reported timely. Of the forty stu...

Condition Summary: The institution's procedures and controls for determining and reporting withdrawal dates to NSLDS were not operating effectively to ensure that the actual effective date of withdrawal was reported accurately and that enrollment status changes were reported timely. Of the forty student records tested for NSLDS withdrawal reporting, we identified the following: • One student where the effective date of withdrawal was reported as the end of the semester rather than the student's actual withdrawal date. • Six students where the effective date of withdrawal was reported as the date the student was notified rather than the actual effective withdrawal date. • One student where the student's withdrawal was not reported timely and was not included on the first enrollment roster following the withdrawal. Management Response / Corrective Action Plan: Management concurs with this finding. Turnover within the Financial Aid office resulted in a breakdown in the process for timely and accurate submission of reporting enrollment changes within NSLDS. Staff previously responsible for this function are no longer employed at the institution, and the engaged consulting firm has assumed interim responsibility for identifying enrollment status changes and completing NSLDS reporting within the required 60-day period. Responsible Party - Raymond Nault, Interim Director of Student Financial Services Title - Interim oversight: Engaged Consulting Firm Anticipated Completion Date - August 24, 2026 Note: Because the corrective actions described above were substantially implemented during and after the fiscal year 2025 audit period, management anticipates that this condition, or elements of it, may continue to be identified as a finding in the University's fiscal year 2025-2026 single audit. Full operating effectiveness of the revised controls will not be demonstrable until they have been in place for a complete testing cycle.

View Audit 409430

Finding 1227346 (2025-012)

Material Weakness 2025

Wittenberg University

OH

Special Tests & Provisions Student Financial Aid Subrecipient Monitoring

Condition Summary: 2 of 3 students selected for verification lacked evidence that required verification procedures were performed, and controls to track verification completion were not operating during the academic year. Management Response / Corrective Action Plan: Management concurs with this fin...

Condition Summary: 2 of 3 students selected for verification lacked evidence that required verification procedures were performed, and controls to track verification completion were not operating during the academic year. Management Response / Corrective Action Plan: Management concurs with this finding. The University has directed the engaged consulting firm to complete a full review of 2025-2026 verification activity, obtain and document outstanding verification records, and complete any required corrections to FAFSA data. A dedicated verification tracking log, maintained by the consulting firm, now records each selected student's status from selection through completion. Staff previously responsible for monitoring verification completion are no longer employed at the institution. Responsible Party - Raymond Nault, Interim Director of Student Financial Services Title - Interim oversight: Engaged Consulting Firm Anticipated Completion Date - August 24, 2026 Note: Because the corrective actions described above were substantially implemented during and after the fiscal year 2025 audit period, management anticipates that this condition, or elements of it, may continue to be identified as a finding in the University's fiscal year 2025-2026 single audit. Full operating effectiveness of the revised controls will not be demonstrable until they have been in place for a complete testing cycle.

View Audit 409430

Finding 1227345 (2025-010)

Material Weakness 2025

Wittenberg University

OH

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting § 200.512

Condition Summary: The Data Collection Form was submitted to the Federal Audit Clearinghouse after the required deadline, with no documented extension obtained. Management Response / Corrective Action Plan: Management concurs with this finding. The University has implemented a compliance calendar, m...

Condition Summary: The Data Collection Form was submitted to the Federal Audit Clearinghouse after the required deadline, with no documented extension obtained. Management Response / Corrective Action Plan: Management concurs with this finding. The University has implemented a compliance calendar, maintained by the engaged consulting firm, that tracks all federal reporting deadlines, including the DCF submission date, with milestone reminders beginning 60 days in advance of each deadline. Responsibility for final submission has been assigned to the consulting firm for the current cycle to ensure the deadline is met while the University's internal compliance-monitoring function is rebuilt. Responsible Party - Michael DeWees, Vice-President for Finance and Administration Title - Interim oversight: Engaged Consulting Firm Anticipated Completion Date - August 24, 2026 Note: Because the corrective actions described above were substantially implemented during and after the fiscal year 2025 audit period, management anticipates that this condition, or elements of it, may continue to be identified as a finding in the University's fiscal year 2025-2026 single audit. Full operating effectiveness of the revised controls will not be demonstrable until they have been in place for a complete testing cycle.

View Audit 409430

Finding 1227344 (2025-008)

Material Weakness 2025

Wittenberg University

OH

Student Financial Aid

Condition Summary: The institution did not consistently perform R2T4 calculations during the year. As a result: 1. 3 of the 4 students tested had R2T4 calculations that were performed late, resulting in $14,074 of returned funds outside the required timeframe. 2. Of the R2T4 calculations tested, 4 o...

Condition Summary: The institution did not consistently perform R2T4 calculations during the year. As a result: 1. 3 of the 4 students tested had R2T4 calculations that were performed late, resulting in $14,074 of returned funds outside the required timeframe. 2. Of the R2T4 calculations tested, 4 of 4 students had R2T4 calculations that were performed incorrectly, resulting in $691 of net over returned Title IV aid. Management Response / Corrective Action Plan: Management concurs with this finding. Turnover within the Financial Aid office resulted in a breakdown in the process used to identify withdrawn students and timely complete R2T4 calculations. As part of the University's full review of 2025-2026 withdrawal activity, all R2T4 calculations have been recalculated and confirmed for accuracy, and any additional funds due have been returned. Staff previously responsible for this function are no longer employed at the institution, and the engaged consulting firm has assumed interim responsibility for identifying withdrawals and completing R2T4 calculations within the required 45-day period, with a secondary review of every calculation prior to submission. Responsible Party - Raymond Nault, Interim Director of Student Financial Services Title - Interim oversight: Engaged Consulting Firm Anticipated Completion Date - August 24, 2026 Note: Because the corrective actions described above were substantially implemented during and after the fiscal year 2025 audit period, management anticipates that this condition, or elements of it, may continue to be identified as a finding in the University's fiscal year 2025-2026 single audit. Full operating effectiveness of the revised controls will not be demonstrable until they have been in place for a complete testing cycle.

View Audit 409430

Finding 1227343 (2025-007)

Material Weakness 2025

Wittenberg University

OH

Cash Management Student Financial Aid

Federal Direct Loan FY24-25: Award # P268K252023 Pell Grant FY24-25: Award # P063P242023 SEOG FY24-25: Award # P007A243392 Condition Summary: SEOG, Federal Direct Loan, and Pell funds were drawn down in excess of immediate disbursement needs at various points during the year, and SEOG and Federal Di...

Federal Direct Loan FY24-25: Award # P268K252023 Pell Grant FY24-25: Award # P063P242023 SEOG FY24-25: Award # P007A243392 Condition Summary: SEOG, Federal Direct Loan, and Pell funds were drawn down in excess of immediate disbursement needs at various points during the year, and SEOG and Federal Direct Loan remained in an overdrawn position at year-end. Management Response / Corrective Action Plan: Management concurs with this finding. The lack of routine reconciliation between the University's internal systems and federal drawdown systems allowed overdrawn positions to persist. The University's full review of 2025-2026 activity included reconstructing drawdown history and bringing all programs current. Going forward, the consulting firm engaged by the University is performing a documented reconciliation between institutional records and G5 drawdown activity on no less than a bi-weekly basis, with any variance requiring same-week resolution. Personnel who previously held responsibility for cash management are no longer employed at the institution. Responsible Party - Michael DeWees, Vice President for Finance and Administration, Controller (Vacant) & Raymond Nault, Interim Director of Student Financial Services Title - Interim oversight: Engaged Consulting Firm Anticipated Completion Date - August 24, 2026 Note: Because the corrective actions described above were substantially implemented during and after the fiscal year 2025 audit period, management anticipates that this condition, or elements of it, may continue to be identified as a finding in the University's fiscal year 2025-2026 single audit. Full operating effectiveness of the revised controls will not be demonstrable until they have been in place for a complete testing cycle.

View Audit 409430

Finding 1227342 (2025-006)

Material Weakness 2025

Wittenberg University

OH

Student Financial Aid Subrecipient Monitoring Matching / Level of Effort / Earmarking

Condition Summary: 5 of 40 credit balance refunds were processed outside the required 14-day timeframe, controls over review and approval were not operating for the full year, and the University could not produce a report distinguishing Title IV credit balances from other funding sources. Management...

Condition Summary: 5 of 40 credit balance refunds were processed outside the required 14-day timeframe, controls over review and approval were not operating for the full year, and the University could not produce a report distinguishing Title IV credit balances from other funding sources. Management Response / Corrective Action Plan: Management concurs with this finding. As part of the University's full review of 2025-2026 cash management activity, a revised credit-balance workflow has been established requiring supervisory approval and a system-generated report that separately identifies balances attributable to Title IV funds. Staff associated with the prior lapse in controls are no longer employed at the institution, and the engaged consulting firm is providing interim monitoring of the 14-day refund requirement, with weekly exception reporting until the control is demonstrated to be operating effectively on a sustained basis. Responsible Party - Ebony Martin, Associate Director of Student Accounts Title - Interim oversight: Engaged Consulting Firm Anticipated Completion Date - August 24, 2026 Note: Because the corrective actions described above were substantially implemented during and after the fiscal year 2025 audit period, management anticipates that this condition, or elements of it, may continue to be identified as a finding in the University's fiscal year 2025-2026 single audit. Full operating effectiveness of the revised controls will not be demonstrable until they have been in place for a complete testing cycle.

View Audit 409430

Finding 1227341 (2025-005)

Material Weakness 2025

Wittenberg University

OH

Subrecipient Monitoring

Condition Summary: Customer data was not encrypted, periodic data inventories were not performed for a portion of the year, and elements of the annual risk assessment were not satisfactorily implemented. Management Response / Corrective Action Plan: Management concurs with this finding. The absence ...

Condition Summary: Customer data was not encrypted, periodic data inventories were not performed for a portion of the year, and elements of the annual risk assessment were not satisfactorily implemented. Management Response / Corrective Action Plan: Management concurs with this finding. The absence of adequate internal controls and monitoring procedures left gaps in the University's information security program required under the GLBA Safeguards Rule. To remediate this finding and safeguard the institution from further harm, the University has engaged an outside consulting firm with information-security expertise to complete a full review of 2025-2026 data-security practices, implement encryption of customer data at rest and in transit, reinstate periodic data inventories, and close the gaps identified in the prior risk assessment. Personnel previously responsible for information security oversight are no longer employed at the institution, and the consulting firm is providing interim GLBA program management, including board-level reporting, while a permanent qualified individual is identified. Responsible Party - Candice Santell, CampusWorks, Ray Nault, Interim Director of Student Financial Services Title - Interim oversight: Engaged Consulting Firms Anticipated Completion Date - August 24, 2026 Note: Because the corrective actions described above were substantially implemented during and after the fiscal year 2025 audit period, management anticipates that this condition, or elements of it, may continue to be identified as a finding in the University's fiscal year 2025-2026 single audit. Full operating effectiveness of the revised controls will not be demonstrable until they have been in place for a complete testing cycle.

View Audit 409430

Finding 1227340 (2025-004)

Material Weakness 2025

Wittenberg University

OH

Student Financial Aid

Federal Direct Loan FY24-25: Award # P268K252023 Pell Grant FY24-25: Award # P063P242023 Condition Summary: Untimely and inaccurate reporting of Pell Grant and Federal Direct Loan disbursements to COD, and inaccuracies in the initial FISAP submission. Management Response / Corrective Action Plan: Ma...

Federal Direct Loan FY24-25: Award # P268K252023 Pell Grant FY24-25: Award # P063P242023 Condition Summary: Untimely and inaccurate reporting of Pell Grant and Federal Direct Loan disbursements to COD, and inaccuracies in the initial FISAP submission. Management Response / Corrective Action Plan: Management concurs with this finding. The turnover experienced within the Financial Aid office during the period disrupted the continuity of the University's COD and FISAP reporting processes. As part of the corrective actions described in the overview above, the University has completed a full review of 2025-2026 disbursement and reporting activity to confirm that COD submissions are made within the required 15-day window and that FISAP data is accurate prior to submission. Staff previously responsible for this function are no longer employed at the institution, and the University has engaged an outside consulting firm to provide interim management of Title IV reporting functions, including a documented weekly COD reconciliation and a formal FISAP review-and-sign-off procedure, until permanent, adequately trained staff are in place. Responsible Party - Raymond Nault, Interim Director of Student Financial Services Title - Interim oversight: Engaged Consulting Firm Anticipated Completion Date - August 24, 2026 Note: Because the corrective actions described above were substantially implemented during and after the fiscal year 2025 audit period, management anticipates that this condition, or elements of it, may continue to be identified as a finding in the University's fiscal year 2025-2026 single audit. Full operating effectiveness of the revised controls will not be demonstrable until they have been in place for a complete testing cycle.

View Audit 409430

Finding 1227332 (2025-011)

Material Weakness 2025

Wittenberg University

OH

Student Financial Aid

Condition Summary: $85,880 of SEOG funding related to the 2024-2025 award year was applied to student accounts during fiscal year 2026, because the full amount of available SEOG funding was not initially allocated to eligible students. Management Response / Corrective Action Plan: Management concurs...

Condition Summary: $85,880 of SEOG funding related to the 2024-2025 award year was applied to student accounts during fiscal year 2026, because the full amount of available SEOG funding was not initially allocated to eligible students. Management Response / Corrective Action Plan: Management concurs with this finding. As part of the University's full review of 2025-2026 packaging activity, the engaged consulting firm has implemented a quarterly reconciliation of SEOG allocation against amounts awarded and disbursed, to ensure funds are fully awarded to eligible students within the correct award year. The University is also evaluating, in consultation with the Department of Education, the appropriate treatment of the funds identified in this finding. Staff previously responsible for SEOG packaging are no longer employed at the institution. Responsible Party - Raymond Nault, Interim Director of Student Financial Services Title - Interim oversight: Engaged Consulting Firm Anticipated Completion Date - August 24, 2026 Note: Because the corrective actions described above were substantially implemented during and after the fiscal year 2025 audit period, management anticipates that this condition, or elements of it, may continue to be identified as a finding in the University's fiscal year 2025-2026 single audit. Full operating effectiveness of the revised controls will not be demonstrable until they have been in place for a complete testing cycle.

View Audit 409430

Finding 1227324 (2025-009)

Material Weakness 2025

Wittenberg University

OH

Student Financial Aid Matching / Level of Effort / Earmarking

Condition Summary: 3 of 25 loans tested lacked a signed promissory note, and 24 of 25 loans lacked adequate repayment documentation. Management Response / Corrective Action Plan: Management concurs with this finding. The University has directed the engaged consulting firm to complete a full inventor...

Condition Summary: 3 of 25 loans tested lacked a signed promissory note, and 24 of 25 loans lacked adequate repayment documentation. Management Response / Corrective Action Plan: Management concurs with this finding. The University has directed the engaged consulting firm to complete a full inventory of the remaining Perkins Loan portfolio, working with the loan servicer to reconstruct or obtain missing promissory notes and repayment records wherever possible, and to document the resolution status of each loan file. Administrative staff previously responsible for maintaining this documentation are no longer employed at the institution. Because the Perkins Loan program is in wind-down status and documentation gaps largely predate the current administration, full file reconstruction may extend beyond the current award year; the University will report progress to the Department of Education as file remediation continues. Responsible Party - Ebony Martin, Associate Director of Student Accounts Title - Interim oversight: Engaged Consulting Firm Anticipated Completion Date - August 24, 2026 Note: Because the corrective actions described above were substantially implemented during and after the fiscal year 2025 audit period, management anticipates that this condition, or elements of it, may continue to be identified as a finding in the University's fiscal year 2025-2026 single audit. Full operating effectiveness of the revised controls will not be demonstrable until they have been in place for a complete testing cycle.

View Audit 409430

Finding 1227308 (2025-001)

Material Weakness 2025

Housing Authority of the City of Eureka

CA

HUD Housing Programs

1. Tracking Deficiencies The Housing Authority will use its ERP system, Yardi, for tracking all failed inspections. The system will have record of all relevant inspection-related information, and inspection staff will update the log on the same day that deficiencies are identified and as corrections...

1. Tracking Deficiencies The Housing Authority will use its ERP system, Yardi, for tracking all failed inspections. The system will have record of all relevant inspection-related information, and inspection staff will update the log on the same day that deficiencies are identified and as corrections and follow-up inspections are completed. Management will review the log regularly to monitor outstanding deficiencies, ensure timely corrective action, and verify compliance with required deadlines. 2. Notification Procedures For a 24-hour correctable deficiency resulting in a failed inspection, the tenant and landlord (if present) will be notified at the time of inspection, and both will receive follow up notice via email or phone immediately thereafter. Where notification is made via phone, a note will be made on the inspection booklet recording the time and details of the conversation. A letter summarizing the conversation will be sent to tenant and/or landlord as applicable. For deficiencies with longer correction times (e.g. 30 days), notification will be sent to the tenant and landlord within 5 business days of the inspection. Notification will include relevant information, including the deficiency identified, the required timeframe for correction, the party responsible for correcting the violation, and potential consequences for failure to complete the required repairs or corrections. Management will periodically review documentation to ensure notifications are completed timely and in accordance with Housing Authority policy and HUD requirements. 3. Management Oversight Management will monitor all open deficiencies to ensure that required notices are issued within required timeframes, corrections are completed and verified timely, and appropriate follow-up actions are taken when repairs or corrections are not completed as required. If deficiencies are not corrected within the required timeframe, the Housing Authority will take appropriate enforcement action in accordance with program requirements and applicable regulations, including HAP abatement and termination of tenant assistance, if required. In addition, failure by staff to complete required inspection and follow-up responsibilities will be reported to executive management for corrective action to ensure continued compliance and accountability. 4. Verification of Corrections All remediation of deficiencies must be verified before the deficiency is considered corrected and closed. Verification may include: Reinspection conducted by Housing Authority staff, with dates of correction documented; Remote video inspection, if it is feasible to discern whether the deficiency was adequately cured; or Photographs clearly documenting completed repairs or corrections 5. Staff Training Inspection and program staff will receive training on: HUD inspection requirements; Identification of life-threatening and 24-hour deficiencies; Required correction and verification timelines; and Documentation and recordkeeping procedures.

View Audit 409428

Finding 1227305 (2025-003)

Material Weakness 2025

Nebraska Early Childhood Collaborative

NE

Cash Management Reporting Significant Deficiency § 200.303

U.S. Department of Health and Human Services Federal Financial Assistance Listing #93.600 Head Start Cluster Early Head Start Child Care Partnership Applicable Federal Award Number and Year – 07HP000640-01-00 and 07HP000640-02-00 9/1/2024 – 8/31/2025 and 9/1/2025 – 8/31/2026 Reporting Significant De...

U.S. Department of Health and Human Services Federal Financial Assistance Listing #93.600 Head Start Cluster Early Head Start Child Care Partnership Applicable Federal Award Number and Year – 07HP000640-01-00 and 07HP000640-02-00 9/1/2024 – 8/31/2025 and 9/1/2025 – 8/31/2026 Reporting Significant Deficiency in Internal Control Over Compliance Criteria: CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over federal awards that provides reasonable assurance that the Organization is managing the federal awards in compliance with federal statutes, regulations and terms and conditions of the federal award. Condition: The Organization was unable to provide adequate documentation of expenditures incurred to support the drawdown of federal awards claimed for reimbursement on an interim basis throughout the reporting period. Corrective Action Plan: At the time of the audit, the new CFO had reviewed its internal processes and has incorporated new procedures and controls over the tracking and submitting of drawdown requests for reimbursement of expenditures incurred under federal awards. All drawdown requests submitted are now reconciled and properly supported by internal records for expenditures incurred during the period being requested. Individual Responsible for Corrective Action: Milton Trabal, Chief Financial Officer Anticipated Completion Date: 2026

View Audit 409416

Finding 1227303 (2025-002)

Material Weakness 2025

Nebraska Early Childhood Collaborative

NE

Reporting Cash Management Material Weakness

U.S. Department of Health and Human Services Federal Financial Assistance Listing #93.600 Head Start Cluster Applicable Federal Award Number and Year – 07HP000640-02-00 9/1/2025 – 8/31/2026 Preparation of Schedule of Expenditures of Federal Awards Material Weakness in Internal Control Over Complianc...

U.S. Department of Health and Human Services Federal Financial Assistance Listing #93.600 Head Start Cluster Applicable Federal Award Number and Year – 07HP000640-02-00 9/1/2025 – 8/31/2026 Preparation of Schedule of Expenditures of Federal Awards Material Weakness in Internal Control Over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the schedule of expenditures of federal awards (Schedule) and accompanying notes to the Schedule in accordance with requirements of the Uniform Guidance. Condition: The Organization’s internal controls over the preparation of the Schedule were not operating effectively. As a result of our audit procedures, misstatements in the Schedule were identified and adjustments to the Schedule were proposed and recorded by management. Corrective Action Plan: Management is in the process of reviewing its accounting processes and procedures over the preparation of the Schedule in order to accurately report federal expenditures incurred during the reporting period. Individual Responsible for Corrective Action: Milton Trabal, Chief Financial Officer Anticipated Completion Date: 12/31/2026

View Audit 409416

Finding 1227302 (2025-001)

Material Weakness 2025

Robbins Children's Programs, Inc.

MA

Reporting § 200.512

Management agrees with the finding and has implemented a revised reporting checklist to ensure compliance going forward.

View Audit 409413

Finding 1227298 (2025-002)

Material Weakness 2025

Columbus Community School District

IA

Internal Control / Segregation of Duties Reporting

The district continues to find solutions to help segregate duties with our minimally staffed central office (business manager, HR director & nutrition director). We modified duties of our building secretaries due to being short staffed. This eliminated an additional check & balance measure added a f...

The district continues to find solutions to help segregate duties with our minimally staffed central office (business manager, HR director & nutrition director). We modified duties of our building secretaries due to being short staffed. This eliminated an additional check & balance measure added a few years ago of the secretary entering receipts into WebLink. The building secretaries continue to write deposit slips & post payment to our student information system. The district’s business manager & HR director will work with board members on the finance & negotiations committee to develop a plan to add more checks & balances to our current operation. We will use the segregation of duties handbook to help with this process.

View Audit 409408

Finding 1227294 (2025-003)

Material Weakness 2025

The Salvation Army Chicago City Fund

IL

Management will ensure the financial statements are submitted to REAC within 90 days of year-end.

View Audit 409407

Finding 1227293 (2025-002)

Material Weakness 2025

The Salvation Army Chicago City Fund

IL

HUD Housing Programs

Management will submit the budget and a corrective action plan to HUD regarding the budget.

View Audit 409407

Finding 1227292 (2025-001)

Material Weakness 2025

The Salvation Army Chicago City Fund

IL

Management will make the delinquent deposit to the replacement reserve of $62,016 and establish transfers for the monthly deposit amount.

View Audit 409407

Finding 1227291 (2025-002)

Material Weakness 2025

St. Vincent General Hospital District

CO

Reporting

The hospital asked the audit team for support in filing this year. An action plan has been developed so that this is done internally in 2026.

View Audit 409404

Finding 1227290 (2025-003)

Material Weakness 2025

Lansing Economic Area Partnership, Inc.

MI

Reporting Internal Control / Segregation of Duties

Finding Type: Immaterial Noncompliance / Significant Deficiency in Internal Control over Compliance (Reporting). Program: Coronavirus State and Local Fiscal Recovery Funds; U.S. Department of Treasury; ALN 21.027, Small Business Support Hubs Program passed through the Michigan Strategic Fund. Audito...

Finding Type: Immaterial Noncompliance / Significant Deficiency in Internal Control over Compliance (Reporting). Program: Coronavirus State and Local Fiscal Recovery Funds; U.S. Department of Treasury; ALN 21.027, Small Business Support Hubs Program passed through the Michigan Strategic Fund. Auditor Description of Condition and Effect: Reporting did not agree to the audited general ledger or to the schedule of expenditures of federal awards (SEFA) due to: 1) Management recording in the general ledger and reporting to the pass-through agency, amounts that were transfers to an internal program, the actual costs of which were being reported under a separate cost center. Because transfers to an internal program do not qualify as grant expenditures or, for that matter expenses in general, the amounts reported as cumulative expenditures of grant funds were reported inaccurately, and 2) Audit adjustments were necessary to adjust subrecipient expenses per the general ledger to actual costs per the subrecipient reporting and back up files. In the initial general ledger, the balance of advances from the prior year, plus advances paid to subrecipients during the year, were incorrectly recorded as grant expenses. In addition, we noted that the reports did not appear to be reviewed for accuracy or completeness. As a result of this condition, the Organization reported inaccurate amounts to the grant pass-through agency. Questioned Costs: No costs were required to be questioned as a result of this finding inasmuch as our testing did not identify any unallowed costs. Auditor Recommendation: We recommend that management continue reviewing all transfers to an internal program, refundable advances associated with revenues, and those made to subrecipients, particularly around year-end, to identify amounts that should be recorded as refundable advances and what amounts should be recorded as grant expenses. This is important because the general ledger can then be used as a base for all grant financial reporting. We further recommend that the reporting be reconciled to the schedule of expenditures of federal awards at year-end. In addition, all reports should be reviewed and approved by appropriate personnel prior to submission. Management's Acknowledgment Management acknowledges that the root cause — the general ledger not serving as a clean, reliable basis for grant financial reporting without manual correction — reflects a structural accounting setup issue compounded by insufficient oversight of the reporting workflow. The core distinction between internal transfers, subrecipient advances, and actual incurred costs must be consistently reflected in GL coding from the point of transaction entry. The SOP's reporting and reconciliation provisions are only effective if the underlying GL data is structured correctly. Corrective Action Plan (see table)

View Audit 409392

Corrective Action Plans

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