Corrective Action Plans

Finding 1221659 (2025-001)

Material Weakness 2025

Wakemed

NC

Subrecipient Monitoring Reporting § 200.302 § 200.331 § 200.510

Finding Number: 2025-001 Condition: Management concurs with the finding and has implemented a new grant governance committee and process for identifying grant components before entering into grant agreements. Management also created a new grant department with staff devoted to researching, applying ...

Finding Number: 2025-001 Condition: Management concurs with the finding and has implemented a new grant governance committee and process for identifying grant components before entering into grant agreements. Management also created a new grant department with staff devoted to researching, applying for, monitoring, and reporting on all grants. The accounting function for grants will be done by this team as well but with continued oversight by the Executive Director, Accounting. Contact person responsible for corrective action: Stephanie Sessoms, Chief Financial Officer; Lynn Bailey, Executive Director, Accounting Anticipated Completion Date: 1/12/2026

View Audit 405945

Finding 1221658 (2025-002)

Material Weakness 2025

Housing Authority of the City of Poteet

TX

HUD Housing Programs Eligibility Special Tests & Provisions § 200.514

Finding No. 2025-002 Corrective Action: The Authority will implement the following corrective actions for the fiscal year ended September 30, 2025 (audit period October 1, 2024 through September 30, 2025): 1. Standardize rent reasonableness documentation. Implement a standardized rent reasonableness...

Finding No. 2025-002 Corrective Action: The Authority will implement the following corrective actions for the fiscal year ended September 30, 2025 (audit period October 1, 2024 through September 30, 2025): 1. Standardize rent reasonableness documentation. Implement a standardized rent reasonableness form (or system-generated report) required at initial lease-up, rent increases, and other required points, and retain it in the tenant file. 2. Pre-approval control for HAP initiation/changes. Require supervisory verification that rent reasonableness support and inspection/HQS documentation are present prior to (a) initial HAP execution, (b) annual recertification processing where applicable, and (c) approval of rent increases. 3. Inspection scheduling and follow-up procedures. Implement a scheduling log and follow-up protocol to ensure (a) initial inspections, (b) annual/biennial inspections (as applicable), and (c) re-inspections are performed and documented timely; rejected/failed inspections will be tracked until resolved. 4. Quality control reviews. Perform periodic internal quality control reviews (e.g., quarterly) of a sample of active tenant files to verify the presence of rent reasonableness and inspection documentation and to identify trends requiring corrective action. 5. Training and written procedures. Update written procedures and provide training to HCV staff and inspectors on documentation standards, retention requirements, and supervisory review expectations. 6. Corrective review of affected files. Review the tenant files identified during audit testing and any similar files from the audit period to obtain/prepare missing rent reasonableness support and ensure inspections were performed/documented; take corrective action for any issues identified. Implementation timeline: • Standard form/procedure updates: within [30] days of report issuance • Supervisory pre-approval control implemented: within 45 days of report issuance • Inspection log and follow-up protocol implemented: within 60 days of report issuance • Staff/inspector training completed: within 90 days of report issuance • First quarterly QC review completed: by September 30, 2026 • Corrective review of affected files completed: by September 30, 2026. Contact Information: Rosario Contero-Oropeza, Executive Director Housing Authority of the City of Poteet 120 Avenue E Poteet, TX 78065 (830)742-3589

View Audit 405939

Finding 1221657 (2025-001)

Material Weakness 2025

Housing Authority of the City of Poteet

TX

HUD Housing Programs § 200.514

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED SEPTEMBER 30, 2025 Finding No. 2025-001 Corrective Action: The Authority will implement the following corrective actions for the fiscal year ended September 30, 2025 (audit period October 1, 2024 through September 30, 2025): 1. PIC/HUD-50058 submission track...

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED SEPTEMBER 30, 2025 Finding No. 2025-001 Corrective Action: The Authority will implement the following corrective actions for the fiscal year ended September 30, 2025 (audit period October 1, 2024 through September 30, 2025): 1. PIC/HUD-50058 submission tracking and accountability. Implement a tracking log (system report or spreadsheet) for all tenant actions requiring PIC/HUD-50058 reporting, including tenant name/ID, action type, effective date, due date, submission date, and evidence of HUD acceptance. 2. Supervisory review prior to file closeout. Require a supervisor to review and initial/approve each tenant action package to confirm PIC/HUD-50058 submission evidence and HUD acceptance confirmation are present before the file is closed, payments are continued, or the action is considered complete. 3. Monthly exception reporting and resolution. Run a monthly PIC exception report (or equivalent system query) to identify missing, rejected, or pending submissions. Assign exceptions to staff for corrective action, document resolution, and retain evidence of follow-up. 4. Tenant file checklist update. Update the tenant file checklist to include PIC/HUD-50058 submission evidence and HUD acceptance confirmation as required elements for applicable actions. 5. Staff training and written procedures. Update written procedures and provide refresher training to staff responsible for reexaminations, interim changes, move-ins, move-outs, and other actions that trigger PIC/HUD-50058 reporting, including documentation retention standards. 6. Lookback/corrective review of the audit-period exceptions. Perform a lookback review of tenant actions processed during the audit period to determine whether additional PIC/HUD-50058 submissions were missed and submit/correct outstanding items, as applicable. Retain documentation of the corrective submissions and acceptance. Monitoring procedures: Management will monitor ongoing compliance by (a) reviewing the monthly exception report and documenting sign-off, (b) performing quarterly quality control reviews of a sample of completed tenant actions to verify PIC/HUD-50058 submission evidence and acceptance confirmation are present, and (c) tracking aging of open exceptions to ensure timely resolution. Statement of ongoing compliance: The Authority will ensure timely and complete PIC/HUD-50058 submissions going forward by requiring each tenant action to be logged and reconciled to PIC submission/acceptance status, enforcing supervisory sign-off prior to action closeout, and promptly resolving any rejected or pending items identified through monthly exception reporting. Implementation timeline: • Tracking log/checklist updates and procedure revisions: within 30 days of report issuance • Supervisory review control implemented: within 45 days of report issuance • Monthly exception reporting and management sign-off begins: within 60 days of report issuance • Staff training completed: within 90 days of report issuance • Lookback review completed: by September 30, 2026. • First quarterly QC review completed: by September 30, 2026

View Audit 405939

Finding 1221654 (2025-002)

Material Weakness 2025

Housing Authority of the City of New Haven D/b/a Elm City Communities

CT

HUD Housing Programs Internal Control / Segregation of Duties Subrecipient Monitoring

We agree that Elm City Communities should have a control environment that allows the books to be closed and regulatory reports filed on a timely basis. In August 2025 we completed a conversion from Elite to Yardi. This caused us to take longer than normal for our year end close process. Planned Impl...

We agree that Elm City Communities should have a control environment that allows the books to be closed and regulatory reports filed on a timely basis. In August 2025 we completed a conversion from Elite to Yardi. This caused us to take longer than normal for our year end close process. Planned Implementation Date of Corrective Action: Immediately Person Responsible for Corrective Action: Shenae Draughn, President.

View Audit 405932

Finding 1221653 (2025-003)

Material Weakness 2025

St. John's Lutheran Home of Albert Lea

MN

Procurement, Suspension & Debarment Reporting Matching / Level of Effort / Earmarking

Client has implemented staffing it is anticipated that the audit for 2025 and related forms will be issued within the allowable time period in the loan agreements.

View Audit 405926

Finding 1221652 (2025-002)

Material Weakness 2025

St. John's Lutheran Home of Albert Lea

MN

Finding Summary: The organization did not have adequate funds to maintain required escrows and debt covenants which resulted in the organization not meeting the continuing compliance requirements for program 10.766 Community Facilities Loans and Grants. Corrective Action Plan: The organization will ...

Finding Summary: The organization did not have adequate funds to maintain required escrows and debt covenants which resulted in the organization not meeting the continuing compliance requirements for program 10.766 Community Facilities Loans and Grants. Corrective Action Plan: The organization will cut costs, sell unproductive assets, and complete the filing for ERC from the federal government. If all goes to plan, escrows should be refilled and the organization should come into compliance with Community Facilities Loans and Grants. Anticipated Completion Date: Ongoing

View Audit 405926

Finding 1221651 (2025-001)

Material Weakness 2025

St. John's Lutheran Home of Albert Lea

MN

Material Weakness Reporting Internal Control / Segregation of Duties

St. John’s Lutheran Home of Albert Lea submits the following corrective action plan for the year ended September 30, 2025. Name and address of independent public accounting firm: Lethert, Skwira, Schultz & Co. LLP, 170 E 7th Place, Saint Paul, MN 55101 Audit period: October 1, 2024 – September 30, 2...

St. John’s Lutheran Home of Albert Lea submits the following corrective action plan for the year ended September 30, 2025. Name and address of independent public accounting firm: Lethert, Skwira, Schultz & Co. LLP, 170 E 7th Place, Saint Paul, MN 55101 Audit period: October 1, 2024 – September 30, 2025 The findings from the September 30, 2025 schedule of findings, questioned costs and recommendations. FINDINGS - FINANCIAL STATEMENT AUDIT Finding 2025-001 - Auditor Preparation of the Financial Statements Material Weakness Finding Summary: The Organization does not have an internal control system designed to provide for the preparation of the complete consolidated financial statements, including the accompanying footnotes, as required by GAAP. We were also requested to draft the financial statements and accompanying notes to the financial statements. Corrective Action Plan: It is not cost effective to have an internal control system designed to provide for the preparation of financial statements and accompanying notes. We requested that our auditors Lethert, Skwira, Schultz & Co. LLP, prepare the financial statements and the accompanying notes to the financial statements as a part of their annual audit. We have designated a member of management to review the drafted financial statements and accompanying notes. Responsible Individuals: Alice Marie, CFO 507-373-2040 Anticipated Completion Date: Ongoing

View Audit 405926

Finding 1221647 (2025-003)

Material Weakness 2025

Attention, Inc. Dba Tgthr

CO

Reporting § 200.303

Management will strengthen controls over federal reporting by establishing documented procedures for the preparation, review, certiﬁcation, and submission of all required federal reports. Responsibility for report preparation and certiﬁcation will be formally assigned, with designated backup personn...

Management will strengthen controls over federal reporting by establishing documented procedures for the preparation, review, certiﬁcation, and submission of all required federal reports. Responsibility for report preparation and certiﬁcation will be formally assigned, with designated backup personnel identiﬁed to ensure continuity during stafﬁng transitions. A reporting calendar and tracking system will be maintained to monitor ﬁling deadlines, and all reports will be subject to documented review and approval by an authorized individual prior to submission. Management will periodically review compliance with reporting requirements to ensure reports are submitted accurately and timely.

View Audit 405913

Finding 1221646 (2025-003)

Material Weakness 2025

California Foundation for Independent Living Centers

CA

Reporting Significant Deficiency § 200.510

III. Finding 2025-003 SEFA Reporting Statement of Concurrence: CFILC concurs with the finding. Corrective Action: CFILC has implemented additional review procedures for preparation of the Schedule of Expenditures of Federal Awards (SEFA). Prior to issuance, grant contract numbers, amendment numbers,...

III. Finding 2025-003 SEFA Reporting Statement of Concurrence: CFILC concurs with the finding. Corrective Action: CFILC has implemented additional review procedures for preparation of the Schedule of Expenditures of Federal Awards (SEFA). Prior to issuance, grant contract numbers, amendment numbers, award amounts, and expenditures reported on the SEFA will be reconciled to executed grant agreements, amendments, and supporting accounting records. Management review and approval of the completed SEFA will be documented prior to submission to the auditors. These procedures have been incorporated into CFILC's year-end financial reporting process to ensure the completeness and accuracy of federal award reporting. Contact Person: M. Lisa Hayes, Executive Director Projected Completion Date: September 30, 2026

View Audit 405911

Finding 1221645 (2025-002)

Material Weakness 2025

California Foundation for Independent Living Centers

CA

Allowable Costs / Cost Principles Reporting Significant Deficiency

II. Finding 2025-002 Lack of Documentation of Quarterly Reporting Statement of Concurrence: CFILC concurs with the finding. Corrective Action: CFILC has revised its reporting procedures to require that all quarterly reports required under the Assistive Technology Agreement be submitted in writing to...

II. Finding 2025-002 Lack of Documentation of Quarterly Reporting Statement of Concurrence: CFILC concurs with the finding. Corrective Action: CFILC has revised its reporting procedures to require that all quarterly reports required under the Assistive Technology Agreement be submitted in writing to the DOR Contract Administrator and retained electronically with evidence of timely submission. Documentation may include emailed reports, delivery confirmations, or other records demonstrating compliance with reporting deadlines. Management will maintain a centralized reporting file and review quarterly reporting requirements to ensure all required reports are submitted and retained in accordance with grant requirements. Although program activity associated with the Device Lending and Demonstration Centers and Reuse Centers is currently being procured through a competitive RFP process, CFILC will submit all required quarterly reports beginning with the next reporting cycle, including reports indicating limited or no activity when applicable. Contact Person: M. Lisa Hayes, Executive Director Projected Completion Date: July 30, 2026

View Audit 405911

Finding 1221644 (2025-001)

Material Weakness 2025

California Foundation for Independent Living Centers

CA

Procurement, Suspension & Debarment

I. Finding 2025-001 Procurement Documentation and Suspension/Debarment Verification Statement of Concurrence: CFILC concurs with the finding. Corrective Action: CFILC has strengthened its procurement procedures for purchases made under federally funded programs. Effective immediately, all procuremen...

I. Finding 2025-001 Procurement Documentation and Suspension/Debarment Verification Statement of Concurrence: CFILC concurs with the finding. Corrective Action: CFILC has strengthened its procurement procedures for purchases made under federally funded programs. Effective immediately, all procurements subject to competitive bidding requirements will include documentation of vendor evaluations, bid analyses, sole-source justifications when applicable, and verification of vendor eligibility through SAM.gov prior to award. Program and management staff responsible for procurement activities have been informed of the documentation requirements contained in the DOR Assistive Technology Agreement and federal procurement standards. A procurement checklist and centralized electronic procurement file will be maintained for all applicable purchases to ensure required documentation is retained and available for audit review. Because purchases utilizing year-end Assistive Technology funds generally occur during the fourth quarter of the contract period, compliance with the revised procedures will be demonstrated with the next applicable procurement cycle. Contact Person: M. Lisa Hayes, Executive Director Projected Completion Date: June 30, 2026 Ongoing monitoring thereafter

View Audit 405911

Finding 1221643 (2025-003)

Material Weakness 2025

Connecticut Veterans Legal Center, Inc.

CT

Reporting Significant Deficiency Internal Control / Segregation of Duties

The Center is working with their third-party bookkeeper to ensure all federal funds are reported properly in their general ledger system in order to determine if a federal single audit is required.

View Audit 405906

Finding 1221638 (2025-002)

Material Weakness 2025

Connecticut Veterans Legal Center, Inc.

CT

Allowable Costs / Cost Principles

The Center is evaluating case management systems that can easily create comprehensive billing statements. In the meantime, employees will maintain timesheets, indicting time spent at work, with a supervisor review of the timesheets, and are tracking time spent on cases assigned to grants in the curr...

The Center is evaluating case management systems that can easily create comprehensive billing statements. In the meantime, employees will maintain timesheets, indicting time spent at work, with a supervisor review of the timesheets, and are tracking time spent on cases assigned to grants in the current case management software. The portion of employee time spent on the relevant grant is determined by evaluating case time tracking by employees.

View Audit 405906

Finding 1221636 (2025-001)

Material Weakness 2025

Roanoke Chowan Community Health Center

NC

Reporting § 200.328

Untimely Submission of Federal Financial Reports (SF 425) – Reporting – Assistance Listing Numbers: 93.224 and 93.527 Consolidated Health Center Cluster Type of Finding – Significant Deficiency in Internal Control over Compliance Cause – Controls and procedures designed to ensure timely preparation,...

Untimely Submission of Federal Financial Reports (SF 425) – Reporting – Assistance Listing Numbers: 93.224 and 93.527 Consolidated Health Center Cluster Type of Finding – Significant Deficiency in Internal Control over Compliance Cause – Controls and procedures designed to ensure timely preparation, review, and submission of required federal financial reports were not consistently followed, resulting in delayed submission of SF-425 reports. Corrective Actions: 1. Improvement of Data Entry and Documentation Management a. The process for submitting, processing, and storing sliding fee applications will be reviewed and streamlined to ensure that all supporting income level documents are properly collected, verified, and stored at the time of application submission. b. Employees involved in handling sliding fee applications and supporting documents will be provided with training on the importance of accurate documentation and the procedures for proper filing, both physically and electronically. 2. Implement Regular Monitoring and Auditing: a. A regular internal review and audit process will be revisited to ensure that backup, storage and retention practices are followed. These audits will focus on verifying that all sliding fee applications and related documents are stored correctly and are retrievable as needed. b. Any discrepancies or issues identified during audits will be addressed promptly, and corrective action will be taken to ensure compliance with the established procedures. 3. Staff Training and Awareness: a. Training sessions will be conducted for all relevant staff on the updated backup, storage and retention procedures for sliding fee applications and income documentation. This training will emphasize the importance of maintaining accurate and accessible records to comply with regulatory and organizational standards. b. Refresher training will be provided quarterly to ensure ongoing compliance and awareness.

View Audit 405900

Finding 1221630 (2025-001)

Material Weakness 2025

Alfred Saliba Family Services Center, Inc.

AL

Reporting Allowable Costs / Cost Principles § 200.303

Please accept this correspondence as the Alfred Saliba Family Services Center, Inc. 's formal corrective action response to Finding 2025-001: Reporting, related to the review and documentation process for Federal Financial Reports, including SF-425 reports. During the prior audit cycle, management b...

Please accept this correspondence as the Alfred Saliba Family Services Center, Inc. 's formal corrective action response to Finding 2025-001: Reporting, related to the review and documentation process for Federal Financial Reports, including SF-425 reports. During the prior audit cycle, management became aware of deficiencies related to the review and documentation process for Federal Financial Reports. While the 2024 audit was occurring and these deficiencies were being identified, the previous Grants Manager was relieved from her position. Following that personnel change, the Alfred Saliba Family Services Center undertook a reorganization of fiscal management responsibilities to strengthen oversight, accountability, and internal controls. As part of this corrective action, the organization reviewed, rewrote, and codified its Fiscal Policies and Procedures, which were formally adopted by the Board of Directors. These revised policies clarified reporting responsibilities, strengthened the review and approval process, and established clearer expectations for documentation, supervisory review, and retention of records related to grant reporting. The revised fiscal policies also include a new Federal Financial Report (SF-425) Review & Approval Form, located in Appendix X of Standard 2 - Fiscal Policies and Procedures, to ensure consistent documentation of management review prior to submission. Since the personnel and fiscal management changes were implemented, SF-425 reports have been prepared and provided to the Executive Director in a timely manner prior to submission. The Executive Director reviews the reports, verifies the information as appropriate, and signs the reports to document management review and approval. This process provides clear evidence that financial reports are revi_ewed before submission and that appropriate oversight is occurring. The Alfred Saliba Family Services Center believes these corrective actions have addressed the condition noted in the finding. The organization will continue to monitor this process as part of its ongoing fiscal management framework to ensure sustained compliance, timely reporting, and proper documentation of management review. Anticipated Completion: Immediately Responsible Party: Jim Hartnett, Executive Director

View Audit 405873

Finding 1221625 (2025-002)

Material Weakness 2025

McLaren Health Care Corporation and Subsidiaries

MI

Cash Management Material Weakness § 200.305

Condition: The Corporation’s cash management policies were not in conformance with Uniform Guidance requirements. Although cash management transactions tested were performed in accordance with existing practices, the Corporation did not have a written cash management policy that met Uniform Guidance...

Condition: The Corporation’s cash management policies were not in conformance with Uniform Guidance requirements. Although cash management transactions tested were performed in accordance with existing practices, the Corporation did not have a written cash management policy that met Uniform Guidance requirements. Planned Corrective Action: The Corporation will implement and formally adopt written cash management policies and procedures that conform to Uniform Guidance requirements and should ensure those procedures are consistently followed and documented. Contact person responsible for corrective action: Michelle Toups and Brian Balutanski Anticipated Completion Date: 1/1/2027

View Audit 405860

Finding 1221624 (2025-001)

Material Weakness 2025

McLaren Health Care Corporation and Subsidiaries

MI

Procurement, Suspension & Debarment § 200.212 § 200.317 § 200.318 § 200.327

Condition: The Corporation’s procurement and suspension/debarment policies and procedures were not in conformance with Uniform Guidance requirements. In addition, procurement records for the items tested did not contain sufficient documentation to support the procurement method used, the basis for c...

Condition: The Corporation’s procurement and suspension/debarment policies and procedures were not in conformance with Uniform Guidance requirements. In addition, procurement records for the items tested did not contain sufficient documentation to support the procurement method used, the basis for contract selection, or compliance with suspension and debarment requirements. Planned Corrective Action: The Corporation will update and formally adopt written procurement, suspension, and debarment policies and procedures to conform to Uniform Guidance requirements and should implement procedures to ensure those policies are consistently followed and documented for all federally funded procurements. Contact person responsible for corrective action: Michelle Toups and Brian Balutanski Anticipated Completion Date: 1/1/2027

View Audit 405860

Finding 1221621 (2025-001)

Material Weakness 2025

Hope Federal Credit Union

MS

Significant Deficiency Internal Control / Segregation of Duties

HEC will implement the following actions to correct the error and prevent recurrence: 1. Repayment of Overclaimed Funds HEC will return the full amount of overclaimed funds to the respective grant programs: - $2,986.76 to SFA AR - $5,687.74 to SFA MS 2. Payroll System Controls Enhancement HEC’s Huma...

HEC will implement the following actions to correct the error and prevent recurrence: 1. Repayment of Overclaimed Funds HEC will return the full amount of overclaimed funds to the respective grant programs: - $2,986.76 to SFA AR - $5,687.74 to SFA MS 2. Payroll System Controls Enhancement HEC’s Human Assets department will coordinate with its payroll processing vendor (UKG) to: - Review payroll configuration settings related to bonus payments. - Implement controls to ensure bonus compensation is excluded from grant-related labor distributions. 3. Monitoring and Oversight Reinforcement The VP of Government Grant Compliance will reinforce internal review procedures by: - Providing targeted guidance to the Investor Relations Grant Compliance and Fiscal teams on identifying anomalies in Wage and Hour Reports, including unusual or inflated hourly rates

View Audit 405857

Finding 1221619 (2025-005)

Material Weakness 2025

Southeast Rural Community Assistance Project, Inc.

VA

Procurement, Suspension & Debarment Subrecipient Monitoring Eligibility § 200.214

• Management Response - SERCAP will improve lease accounting controls by: Creating and maintaining accurate model spreadsheet of centralized lease inventory for all operating and financing leases. Establishing written procedures requiring all lease agreements, amendments, renewals, and extensions to...

• Management Response - SERCAP will improve lease accounting controls by: Creating and maintaining accurate model spreadsheet of centralized lease inventory for all operating and financing leases. Establishing written procedures requiring all lease agreements, amendments, renewals, and extensions to be communicated to the Finance Department immediately upon execution. Performing an annual review of all lease agreements to determine whether modifications require remeasurement under ASC 842. Preparing documented lease calculations and reconciliations for supervisory review. Updating accounting policies and procedures related to lease accounting and providing additional staff training regarding ASC 842 requirements. In addition, setup a policy and procedure for the review and documentation review of all contracts for a potential embedded lease transaction. SERCAP has hired new staff for capacity and support. • Contact Person: • Contact Phone Number: • Expected Completion Date: Charles Denny, Jr. - Finance & Operations 540-345-1184 ext. 128 September 30, 2026

View Audit 405852

Finding 1221618 (2025-004)

Material Weakness 2025

Southeast Rural Community Assistance Project, Inc.

VA

Cash Management Subrecipient Monitoring Reporting

• Management Response - Management concurs with the finding and recognizes the importance of strengthening controls over revenue recognition for conditional grants and contributions. SERCAP will implement the following corrective actions: Develop and implement a standardized Grant Revenue Recognitio...

• Management Response - Management concurs with the finding and recognizes the importance of strengthening controls over revenue recognition for conditional grants and contributions. SERCAP will implement the following corrective actions: Develop and implement a standardized Grant Revenue Recognition Checklist for all new grant awards to identify conditional barriers, allowable costs, reporting requirements, and revenue recognition criteria. Maintain a centralized grant tracking schedule that identifies grant conditions, expenditures incurred, revenue recognized, refundable advances, and remaining deferred revenue. Perform monthly reconciliations between grant schedules and the general ledger. Implement a documented two-level review process whereby the preparer completes the reconciliation and a supervisory reviewer verifies the accuracy and completeness before month-end close. Provide additional training to finance and program management staff regarding ASC 958 revenue recognition requirements for conditional contributions. Update internal accounting procedures to document the review and approval process for recognizing grant revenue. These procedures will be incorporated into the monthly financial close process and monitored throughout FY2026. SERCAP has hired new staff for capacity and support • Contact Person: Charles Denny, Jr. - Finance & Operations • Contact Person: Beth Pusha - Loan Fund • Contact Phone Number: 540-345-1184 • Expected Completion Date: September 30, 2026

View Audit 405852

Finding 1221612 (2025-001)

Material Weakness 2025

Hughes Village Council

AK

Subrecipient Monitoring Reporting Significant Deficiency

Finding 2025-001 Significant Deficiency in Internal Control over Compliance, Noncompliance - Reporting Name of Contact Person: Tawnie J Attla Corrective Action Plan: When we hire, sign agreements that include the completion of duties. So that one doesn’t take the time to learn and then not complete ...

Finding 2025-001 Significant Deficiency in Internal Control over Compliance, Noncompliance - Reporting Name of Contact Person: Tawnie J Attla Corrective Action Plan: When we hire, sign agreements that include the completion of duties. So that one doesn’t take the time to learn and then not complete all tasks before abandoning their position. Before HVC takes on additional grants and duties, the administration (TA and TA Assistant) will learn the processes and portals for the current grants and recurring ones. Create how to guides to include with the new grant binders, for reporting and portal use. Have calendars for each grant. Utilize one big calendar on the wall that includes all the grant reporting periods and the annual requirements for sam.gov (log in requirement). Continue trying to fill positions and delegate workload. Proposed Completion Date: September 30, 2026.

View Audit 405850

Finding 1221539 (2025-004)

Material Weakness 2025

LAPEER COUNTY ROAD COMMISSION

MI

Internal Control / Segregation of Duties Procurement, Suspension & Debarment Allowable Costs / Cost Principles § 200.303

Finding Number: 2025-004 Condition: During the audit it was identified the Road Commission did not have formal written federal policies and procedures that document the processes and controls used to administer federal awards, including procedures for compliance \with applicable federal program requ...

Finding Number: 2025-004 Condition: During the audit it was identified the Road Commission did not have formal written federal policies and procedures that document the processes and controls used to administer federal awards, including procedures for compliance \with applicable federal program requirements under Uniform Guidance (2 CFR, Part 200.303) Planned Corrective Action: Road Commission is in the process of developing and implementing a written federal policies and procedure addressing the administration of federal awards to ensure compliance with Uniform Guidance (2 CFR, Part 200). The policy will address the following key compliance areas: allowable costs, cash management, procurement, and conflict of interest. The policy shall be reviewed and modified to included all the necessary items outlined in the Uniform Guidance. Contact Person responsible for corrective action: Destain Gingell, Managing Director / CHE, Kathleen Cunningham, Finance Director Anticipated Completion Date: July 30, 2026

View Audit 405838

Finding 1221537 (2025-001)

Material Weakness 2025

Housing Authority of South Bend

IN

HUD Housing Programs

Action Taken: The Management of the Authority agrees with the findings. We will implement improved internal controls to ensure that all annual recertifications are performed in a timely manner and that all required documents are kept in an organized manner. The Compliance Specialist will perform mon...

Action Taken: The Management of the Authority agrees with the findings. We will implement improved internal controls to ensure that all annual recertifications are performed in a timely manner and that all required documents are kept in an organized manner. The Compliance Specialist will perform monthly quality checks on the files and work with staff to eliminate errors. The HCV Director is the responsible party, and controls will be in place by the end of the September 30, 2026 fiscal year.

View Audit 405834

Finding 1221536 (2025-002)

Material Weakness 2025

Housing Authority of South Bend

IN

HUD Housing Programs Eligibility

Action Taken: The Management of the Authority agrees with the findings. We will implement improved internal controls to ensure that all annual recertifications are performed in a timely manner and that all required documents are kept in an organized manner. The Compliance Specialist will perform mon...

Action Taken: The Management of the Authority agrees with the findings. We will implement improved internal controls to ensure that all annual recertifications are performed in a timely manner and that all required documents are kept in an organized manner. The Compliance Specialist will perform monthly quality checks on the files and work with staff to eliminate errors. The Director of Asset Management is the responsible party, and controls will be in place by the end of the September 30, 2026 fiscal year.

View Audit 405834

Finding 1221535 (2025-002)

Material Weakness 2025

Family Guidance Centers, Inc.

IL

Allowable Costs / Cost Principles Significant Deficiency Matching / Level of Effort / Earmarking § 200.430

Condition: The Organization allocates personnel costs to federal programs based on wage forms that reflect estimated time expected to be worked across programs. Supervisors perform biweekly reviews of employee time charged within the Paylocity system and compare allocations to supporting information...

Condition: The Organization allocates personnel costs to federal programs based on wage forms that reflect estimated time expected to be worked across programs. Supervisors perform biweekly reviews of employee time charged within the Paylocity system and compare allocations to supporting information such as program schedules and caseloads. However, we noted that: - There is no formal documentation retained evidencing the supervisor's review of supporting records (e.g., caseloads, schedules) to substantiate that recorded time aligns with actual work performed; and - The only evidence of review is system approval within Paylocity, which indicates the timecard was approved but does not demonstrate the nature, extent, or basis of the review performed. Planned Corrective Action: Family Guidance Centers will require direct supervisors to document their review of supporting records (e.g., caseloads, schedules) of direct reports to substantiate that recorded time aligns with actual work performed as a part of their bi-weekly timesheet reviews. Family Guidance Centers will retain this documentation in accordance with its document retention policy. Contact person responsible for corrective action: Jim Hagestad, CFO Anticipated Completion Date: July 1, 2026

View Audit 405832

Corrective Action Plans

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