Corrective Action Plans

Finding 1165082 (2024-001)

Material Weakness 2024

ME

Reporting Matching / Level of Effort / Earmarking

Management response/corrective action plan: The condition occurred during a period of significant disruption. The 2024 budget was adopted by Trustees on November 13, and thirteen days later the General Manager unexpectedly passed away during the Thanksgiving holiday. In the aftermath of his passing,...

Management response/corrective action plan: The condition occurred during a period of significant disruption. The 2024 budget was adopted by Trustees on November 13, and thirteen days later the General Manager unexpectedly passed away during the Thanksgiving holiday. In the aftermath of his passing, District staff and Trustees worked closely with USDA Rural Development to ensure the capital project moved forward and that all required project-related documentation was submitted. USDA Rural Development requires submission of the annual budget to ensure that the funded entity has sufficient revenue to cover upcoming debt payments, as well as operation and maintenance costs. For 2024, USDA RD staff were aware that the Sewer District was implementing a 13.42% rate increase to address inflationary operational costs and increased sludge disposal costs, as well as establishing a 5% infrastructure improvement surcharge to begin preparing for the upcoming USDA debt payments. Through the ongoing communications, USDA did not express any concerns regarding the District’s financial position or readiness for upcoming payments. Going forward, the project manager will ensure compliance with federal reporting requirements for this project, including the timely submission of the annual budget to USDA.

View Audit 375295

Finding 1165069 (2024-002)

Material Weakness 2024

Caresouth Carolina, Inc.

SC

Reporting

We have reviewed the comments provided herein and are in agreement with the comments and will remediate the findings as follows: • We are reviewing the staffing of our finance department in an effort to ensure that on an ongoing basis these issues and findings are addressed and corrected. • Turnover...

We have reviewed the comments provided herein and are in agreement with the comments and will remediate the findings as follows: • We are reviewing the staffing of our finance department in an effort to ensure that on an ongoing basis these issues and findings are addressed and corrected. • Turnover has been due to the retirement of our Chief Financial Officer who had been with the organization for over thirty years. We made the decision to fill the CFO position vacated by the retiring CFO with the currently employed Controller. Although this transition has been in process for approximately a year, we recognize the need for ongoing training and support. We will ensure this. • Additionally, we have recruited a Staff Accountant with a start date of February 2025 to support accounting needs. • Although with this recruitment there are no Finance staff vacancies, we are evaluating to determine if we need to increase current staffing. In closing, we will support turnover and have individuals with adequate training and subject matter knowledge to perform assigned functions in accordance with appropriate standards and expectations. Additionally, we plan to finalize our internal balancing and financial reporting by August 31st thereby allowing for more time to complete the annual financial statement audit. We are always receptive to positive constructive criticism in our effort to improve upon compliance and financial reporting. Sincerely yours, Ann M. Lewis Chief Executive Officer

View Audit 375217

Finding 1165068 (2024-001)

Material Weakness 2024

Caresouth Carolina, Inc.

SC

Reporting Internal Control / Segregation of Duties

We have reviewed the comments provided herein and are in agreement with the comments and will remediate the findings as follows: • We are reviewing the staffing of our finance department in an effort to ensure that on an ongoing basis these issues and findings are addressed and corrected. • Turnover...

We have reviewed the comments provided herein and are in agreement with the comments and will remediate the findings as follows: • We are reviewing the staffing of our finance department in an effort to ensure that on an ongoing basis these issues and findings are addressed and corrected. • Turnover has been due to the retirement of our Chief Financial Officer who had been with the organization for over thirty years. We made the decision to fill the CFO position vacated by the retiring CFO with the currently employed Controller. Although this transition has been in process for approximately a year, we recognize the need for ongoing training and support. We will ensure this. • Additionally, we have recruited a Staff Accountant with a start date of February 2025 to support accounting needs. • Although with this recruitment there are no Finance staff vacancies, we are evaluating to determine if we need to increase current staffing. In closing, we will support turnover and have individuals with adequate training and subject matter knowledge to perform assigned functions in accordance with appropriate standards and expectations. Additionally, we plan to finalize our internal balancing and financial reporting by August 31st thereby allowing for more time to complete the annual financial statement audit. We are always receptive to positive constructive criticism in our effort to improve upon compliance and financial reporting. Sincerely yours, Ann M. Lewis Chief Executive Officer

View Audit 375217

Finding 1165067 (2024-002)

Material Weakness 2024

Asi - Jackson County, Inc.

MN

HUD Housing Programs Reporting

Once the Project’s cash flow improves, the reserve for replacement deposits will be caught up and made monthly thereafter.

View Audit 375188

Finding 1165066 (2024-001)

Material Weakness 2024

Asi - Jackson County, Inc.

MN

HUD Housing Programs Eligibility Reporting

The tenant recertifications will be monitored by the owner to ensure they are being completed in a timely manner.

View Audit 375188

Finding 1164962 (2024-001)

Material Weakness 2024

City of Pullman

WA

Procurement, Suspension & Debarment Subrecipient Monitoring

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE City of Pullman January 1, 2024 through December 31, 2024 This schedule presents the corrective action the City is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (CF...

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE City of Pullman January 1, 2024 through December 31, 2024 This schedule presents the corrective action the City is planning to take for findings included in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2024-001 Finding caption: The City did not have adequate internal controls and did not comply with federal suspension and debarment requirements. Name, address, and telephone of City contact person: Jeff Elbracht, Director of Finance 190 SE Crestview Street, Pullman, WA 99163 (509) 338-3212 Corrective action the auditee plans to take in response to the finding: Controls and training will be put in place to ensure staff complies with federal suspension and debarment requirements including completion for the process on all subsequent agreements with each contractor. Anticipated date to complete the corrective action: Immediately

View Audit 374927

Finding 1164947 (2024-003)

Material Weakness 2024

Town of Sandwich, New Hampshire

NH

Reporting Matching / Level of Effort / Earmarking § 200.328

Finding #2024-003 – Lack of Reporting Description of Finding: The Town did not submit required performance reports for the Rural eConnectivity Pilot Program during the 2024 audit. The Town was unaware of the specific reporting requirements required by the USDA and had challenges in communicating wit...

Finding #2024-003 – Lack of Reporting Description of Finding: The Town did not submit required performance reports for the Rural eConnectivity Pilot Program during the 2024 audit. The Town was unaware of the specific reporting requirements required by the USDA and had challenges in communicating with the awarding agency to clarify these expectations. Statement of Concurrence of Nonconcurrence: Concurrence. Contact Person: Courtney Delaney, Town Administrator Planned Corrective Action: Establish clarification as to applicable performance reports for the ReConnect program and submit required performance reports. Anticipated Completion Date: The Town has submitted several outstanding reports to the awarding agency as of this date and addressed challenges in communication and access to reporting portals. Two performance reports were not available until the initial report was filed. The Town is finalizing the outstanding performance reports currently and awaits technical information from the ISP and subrecipient for completion. Anticipated completion no later than September 30, 2025.

View Audit 374876

Finding 1164946 (2024-002)

Material Weakness 2024

Town of Sandwich, New Hampshire

NH

Subrecipient Monitoring § 200.331 § 200.333

Finding #2024-002 – Lack of Subrecipient Monitoring Description of Finding: The Town passed through approximately $1,650,000 in federal funds to a local electric Co-op for broadband infrastructure installation. The Town did not perform subrecipient monitoring specific to this award by identifying ap...

Finding #2024-002 – Lack of Subrecipient Monitoring Description of Finding: The Town passed through approximately $1,650,000 in federal funds to a local electric Co-op for broadband infrastructure installation. The Town did not perform subrecipient monitoring specific to this award by identifying applicable requirements for the award after the disbursement of these funds. Statement of Concurrence of Nonconcurrence: The Town concurs that applicable requirements for the award were not identified for the subrecipient, however the Town did monitor activities of the subrecipient. The Town monitored activities to ensure funds were used for allowable activities. Contact Person: Courtney Delaney, Town Administrator Planned Corrective Action: Establish and implement a formal subrecipient monitoring process for all federal funds passed through to other entities. Seek guidance from the awarding agency if responsibilities are unclear. Anticipated Completion Date: The Town has been in regular communication with the awarding agency and established clarity as to applicable terms and conditions as of this date. The Town is working to establish and implement a formal monitoring process and anticipates completion no later than December 31, 2025.

View Audit 374876

Finding 1164945 (2024-003)

Material Weakness 2024

Eve, INC

MI

Allowable Costs / Cost Principles Material Weakness Reporting

Management concurs with the finding and has initiated immediate steps to strengthen record retention and succession planning for federal award management. A key element of our response is the engagement our outsourced accounting provider, to ensure compliance with federal regulations and establish r...

Management concurs with the finding and has initiated immediate steps to strengthen record retention and succession planning for federal award management. A key element of our response is the engagement our outsourced accounting provider, to ensure compliance with federal regulations and establish robust processes. To address this finding, the following actions are underway: - By December 31, 2025, management, with the expertise of the outsourced CPA firm, will implement a comprehensive record retention policy tailored to federal award management. This policy will outline retention periods, storage protocols, and access requirements, ensuring all documentation is systematically organized and readily available. - For fiscal year 2025, the outsourced CPA firm is assisting in the creation and retention of adequate reconciling schedules to support all grant draw requests, aligning our processes with federal compliance standards. - The outsourced CPA firm is also supporting the development of detailed procedure manuals for federal award processes and the implementation of a document management system to centralize and secure critical records. These efforts will mitigate the risks associated with staff turnover and ensure continuity of operations. - By December 31, 2025, management will formalize a succession planning process for key positions involved in federal award management, incorporating cross-training of staff under the guidance of our CPA firm to facilitate knowledge transfer and operational resilience. The transition to our outsourced accounting provider addresses the root causes of this finding by bringing specialized expertise and structured processes to our federal award management. We are confident that these actions will result in sustainable improvements and full compliance with federal requirements. Anticipated completion date for these initiatives is December 31, 2025. Anticipated completion date is December 31, 2025.

View Audit 374870

Finding 1164892 (2024-001)

Material Weakness 2024

Bellevue Rotary Senior Housing Corporation

OH

Matching / Level of Effort / Earmarking

Management concurs with the findings and auditors’ recommendations to enhance internal controls to ensure compliance with the RD requirements. Furthermore, we would like to note that the questioned costs was paid from project cash for the ultimate benefit of improving the property for the tenants. T...

Management concurs with the findings and auditors’ recommendations to enhance internal controls to ensure compliance with the RD requirements. Furthermore, we would like to note that the questioned costs was paid from project cash for the ultimate benefit of improving the property for the tenants. The substantial rehabilitation tax credit transaction planned by the owner is anticipated to start within the next fiscal year will significantly enhance the living standards and experience for the tenants. The funds used for purposes directly related to the operations of the project will be repaid with the planned closing of the Low-Income Housing tax credit transaction during fiscal year 2025 unless an approval is granted by RD for payment of the questioned costs that will ultimately benefit the tenants of Rotary Commons. Furthermore, internal controls over funds used for purposes unrelated to the Corporation are being strengthened to prevent future noncompliance.

View Audit 374814

Finding 1164867 (2024-002)

Material Weakness 2024

Blue Ride Health Center, Inc.

VA

Reporting Internal Control / Segregation of Duties § 200.512 § 200.520

BRHC has hired additional accounting staff to better ensure the month-end and year-end close processes are performed timely and will work with the audit firm to ensure that audit field work is scheduled with sufficient time to allow the audit report and data collection form to be filled in a timely ...

BRHC has hired additional accounting staff to better ensure the month-end and year-end close processes are performed timely and will work with the audit firm to ensure that audit field work is scheduled with sufficient time to allow the audit report and data collection form to be filled in a timely manner in the future.

View Audit 374716

Finding 1164863 (2024-001)

Material Weakness 2024

Blue Ride Health Center, Inc.

VA

Subrecipient Monitoring Internal Control / Segregation of Duties

We believe the underlying issue has been corrected by aligning general ledger posting dates with the actual transaction dates in the accounting system so that amounts are captured in the proper period moving forward. Going forward, management will maintain supporting schedules and prepare timely rec...

We believe the underlying issue has been corrected by aligning general ledger posting dates with the actual transaction dates in the accounting system so that amounts are captured in the proper period moving forward. Going forward, management will maintain supporting schedules and prepare timely reconciliations to the general ledger on a monthly basis. Required adjustments will be communicated to the management of the accounting function and posted to the general ledger. Management will conduct a final review of the monthly financials prior to finalization, ensuring all requested correcting adjustments have been made and any unnatural balances have been investigated and corrected.

View Audit 374716

Finding 1164846 (2024-001)

Material Weakness 2024

Advanced Housing Inc.

NJ

Significant Deficiency Internal Control / Segregation of Duties

Management will review contracts at year end and record appropriate corresponding revenue for cost reimbursement contracts to ensure it is recorded properly.

View Audit 374686

Finding 1164845 (2024-001)

Material Weakness 2024

Livewell Greenville

SC

HUD Housing Programs

The duties will be segregated as much as possible and the Board of Directors will remain involved in the financial affairs of the Coalition to provide oversight and independent review functions.

View Audit 374682

Finding 1164838 (2024-001)

Material Weakness 2024

Randolph County Board of Education

GA

Reporting § 200.303

FA 2024-001 Improve Controls over Financial Reporting Compliance Requirement: Reporting Internal Control Impact: Material Weakness Compliance Impact: Nonmaterial Noncompliance Federal Awarding Agency: U.S. Department of Health and Human Services Pass-Through Entity: None Assistance Listing Number an...

FA 2024-001 Improve Controls over Financial Reporting Compliance Requirement: Reporting Internal Control Impact: Material Weakness Compliance Impact: Nonmaterial Noncompliance Federal Awarding Agency: U.S. Department of Health and Human Services Pass-Through Entity: None Assistance Listing Number and Title: 93.600 - Head Start Federal Award Number: 04CH011758 (Year: 2020) Questioned Costs: None Identified Description: The policies and procedures of the School District were insufficient to provide adequate internal controls over Head Start program reporting requirements. Corrective Action Plans: The School District will review accounting procedures related to all aspects of the accounting functions. The financial officer will hold refresher trainings with all necessary participants to make sure all policies and procedures are followed. This training will reiterate that evidence of review and approval of all financial reports is required to ensure that the reports are accurate and complete. Estimated Completion Date: November 28, 2025 Contact Person: Darlene Winger, CFO Telephone: 229-732-2260 Email: darlene.winger@sowegak12.org

View Audit 374665

Finding 1164825 (2024-002)

Material Weakness 2024

County of Montgomery

PA

Subrecipient Monitoring Allowable Costs / Cost Principles § 200.332

Finding 2024-002 - Subrecipient Monitoring Federal Agency: Department of Treasury Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - ALN #21.027 Condition: As part of the monitoring process, the County did not obtain and review the annual audit reports of subrecipients. Planned ...

Finding 2024-002 - Subrecipient Monitoring Federal Agency: Department of Treasury Program: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - ALN #21.027 Condition: As part of the monitoring process, the County did not obtain and review the annual audit reports of subrecipients. Planned Corrective Action: Upon notification of this issue during the 2024 Single Audit, the County immediately took action to implement corrective actions to be compliant with this with this requirement. The County modified the subrecipient quarterly report template for Q3 2025 to include a question requiring all subrecipients to verify if they were audited as required by subpart F of 200.332. The County then conducted the required follow up to obtain and review each audit to identify any significant developments that might negatively impact the subaward. Of the 27 subrecipient audits reviewed, only one had a finding related to 21.027 regarding keeping records of their reporting to the County and hiring a full-time finance director. The County followed up with the subrecipient to confirm that they have put their corrective action into place and the subrecipient responded that this was complete. Additionally, there were four subrecipients who reported that they were required to have an audit, but it wasn't completed yet. The County is in the process of conducting follow-up with these organizations to remind them of their responsibilities under 200.332 and to obtain and review the required audits. The County will conduct subrecipient monitoring of ARPA subrecipients each year throughout the remainder of the program. Additionally, the Controllers department will provide Subrecipient Monitoring training and information in 2026 to County departments who administer subrecipient funding in order to assist them in fully complying with this requirement Name(s) of contact person(s) responsible for corrective action: Fonta Reilly and Eli Gilman Planned completion date for corrective action plan: Corrective action implemented in November 2025

View Audit 374654

Finding 1164807 (2024-006)

Material Weakness 2024

East Central Vermont Telecommunications District

VT

Allowable Costs / Cost Principles

Finding Reference Number: 2024-006 Description of Finding: Vendor Records Statement of Concurrence or Nonconcurrence: The District agrees with this finding. Corrective Action: The accounting software used for the District’s financial records failed to flag a duplicate invoice (#310725) in this insta...

Finding Reference Number: 2024-006 Description of Finding: Vendor Records Statement of Concurrence or Nonconcurrence: The District agrees with this finding. Corrective Action: The accounting software used for the District’s financial records failed to flag a duplicate invoice (#310725) in this instance. The District will remove these costs on a subsequent submission for reimbursement. Name of Contact Person: F. X. Flinn, Board Chair, Telephone:(802)- 369-0069, Email: chair@ecvtd.gov Projected Completion Date: Next Request for Reimbursement

View Audit 374610

Finding 1164806 (2024-005)

Material Weakness 2024

East Central Vermont Telecommunications District

VT

Allowable Costs / Cost Principles

Finding Reference Number: 2024-005 Description of Finding: Vendor Records Statement of Concurrence or Nonconcurrence: The District agrees with this finding. Corrective Action: The District will instruct the operator to indicate on the invoice amounts held back for retainage to be paid at a later dat...

Finding Reference Number: 2024-005 Description of Finding: Vendor Records Statement of Concurrence or Nonconcurrence: The District agrees with this finding. Corrective Action: The District will instruct the operator to indicate on the invoice amounts held back for retainage to be paid at a later date when the work invoiced can be verified as complete. And will also adjust the requisitions to reflect only amounts actually paid. Name of Contact Person: F. X. Flinn, Board Chair, Telephone:(802)- 369-0069, Email: chair@ecvtd.gov Projected Completion Date: October 2025

View Audit 374610

Finding 1164805 (2024-004)

Material Weakness 2024

East Central Vermont Telecommunications District

VT

Subrecipient Monitoring Reporting Significant Deficiency

Finding Reference Number: 2024-004 Description of Finding: Reporting Statement of Concurrence or Nonconcurrence: The District conditionally agrees with this finding. The granting agency did not provide the forms on which to report. Also, due to the nature of the reporting itself, it was impracticabl...

Finding Reference Number: 2024-004 Description of Finding: Reporting Statement of Concurrence or Nonconcurrence: The District conditionally agrees with this finding. The granting agency did not provide the forms on which to report. Also, due to the nature of the reporting itself, it was impracticable to have the reports tie back to the general ledger accounts Corrective Action: The District will work with the granting Agency to get the form to properly report on a quarterly basis. Name of Contact Person: F. X. Flinn, Board Chair, Telephone:(802)- 369-0069, Email: chair@ecvtd.gov Projected Completion Date: July 2025/Ongoing

View Audit 374610

Finding 1164804 (2024-003)

Material Weakness 2024

East Central Vermont Telecommunications District

VT

Cash Management Material Weakness Reporting

Finding Reference Number: 2024-003 Description of Finding: Inaccurate Indirect Cost Rate Applied Statement of Concurrence or Nonconcurrence: The District concurs with the finding. Corrective Action: The District will use the correct overhead rate for future reporting. Name of Contact Person: F. X. F...

Finding Reference Number: 2024-003 Description of Finding: Inaccurate Indirect Cost Rate Applied Statement of Concurrence or Nonconcurrence: The District concurs with the finding. Corrective Action: The District will use the correct overhead rate for future reporting. Name of Contact Person: F. X. Flinn, Board Chair, Telephone:(802)- 369-0069, Email: chair@ecvtd.gov Projected Completion Date: July 2025

View Audit 374610

Finding 1164803 (2024-002)

Material Weakness 2024

East Central Vermont Telecommunications District

VT

Reporting Internal Control / Segregation of Duties

Description of Finding: Inadequate Preparation of the Schedule of Expenditures of Federal Awards (SEFA) Statement of Concurrence or Nonconcurrence: The District conditionally agrees with this finding. The complexity of the grant reporting caused a misunderstanding as to exactly what costs were relev...

Description of Finding: Inadequate Preparation of the Schedule of Expenditures of Federal Awards (SEFA) Statement of Concurrence or Nonconcurrence: The District conditionally agrees with this finding. The complexity of the grant reporting caused a misunderstanding as to exactly what costs were relevant to be included in the SEFA. Corrective Action: The District is now better informed as far as what needs to be included in the SEFA. Name of Contact Person: F. X. Flinn, Board Chair, Telephone:(802)- 369-0069, Email: chair@ecvtd.gov Projected Completion Date: July 2025

View Audit 374610

Finding 1164799 (2024-008)

Material Weakness 2024

Mayes County

OK

Procurement, Suspension & Debarment Allowable Costs / Cost Principles § 200.303

The Board of County Commissioners will work with all County Officials to go over all grants and federal monies that the County receives to ensure that proper internal controls are implemented.

View Audit 374603

Finding 1164798 (2024-007)

Material Weakness 2024

Mayes County

OK

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

We will work to implement a Risk Assessment plan. We will implement controls to help make sure we are in compliance with all grant requirements and federal funds are expended in accordance with grant agreements and in a timely manner. We will ensure employees have the current and correct compliance ...

We will work to implement a Risk Assessment plan. We will implement controls to help make sure we are in compliance with all grant requirements and federal funds are expended in accordance with grant agreements and in a timely manner. We will ensure employees have the current and correct compliance supplement to work from.

View Audit 374603

Finding 1164797 (2024-018)

Material Weakness 2024

Mayes County

OK

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Special Tests & Provisions § 200.303

The Board of County Commissioners will work with all County Officials to go over all grants and federal monies that the County receives to ensure that proper internal controls are implemented.

View Audit 374603

Finding 1164796 (2024-017)

Material Weakness 2024

Mayes County

OK

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

We will work to implement a risk assessment plan. We will implement controls to help make sure we are in compliance with all grant requirements and federal funds are expended in accordance with grant agreements and in a timely manner. We will ensure employees have the current and correct compliance ...

We will work to implement a risk assessment plan. We will implement controls to help make sure we are in compliance with all grant requirements and federal funds are expended in accordance with grant agreements and in a timely manner. We will ensure employees have the current and correct compliance supplement to work from.

View Audit 374603

Corrective Action Plans

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