Corrective Action Plans

Finding 1213765 (2025-002)

Material Weakness 2025

Antelope Valley Union High School District

CA

Special Tests & Provisions Subrecipient Monitoring Material Weakness

The District's management acknowledges and concurs with the finding regarding the maintenance of documentation for students removed from the graduation cohort. We recognize the importance of strictly adhering to the Elementary and Secondary Education Act (ESEA) requirements to ensure the integrity o...

The District's management acknowledges and concurs with the finding regarding the maintenance of documentation for students removed from the graduation cohort. We recognize the importance of strictly adhering to the Elementary and Secondary Education Act (ESEA) requirements to ensure the integrity of the four-year adjusted cohort graduation rate. Following the audit exit conference, District leadership met with staff from the Information Technology (CALPADS team), Educational Services departments and also site staff to discuss the root causes of the missing documentation. The District is committed to strengthening internal controls and ensuring that every student status change is backed by the specific evidentiary standards required by federal and state regulations.

View Audit 400679

Finding 1213763 (2025-007)

Material Weakness 2025

Vance County

NC

Eligibility

Corrective Action: Targeted Staff will be completed related on required signatures or date certifying the documentation, and proper documentation which is needed during application and recertification processing. Refresher training on time clocks and associated ABAWD cases. Increased supervisory mon...

Corrective Action: Targeted Staff will be completed related on required signatures or date certifying the documentation, and proper documentation which is needed during application and recertification processing. Refresher training on time clocks and associated ABAWD cases. Increased supervisory monitoring of worker accuracy, with corrective or disciplinary action for repeated errors. Consistent and documented follow-ups by supervisors on all errors identified to confirm corrections are made and understood. The agency's supervisory or lead worker will deliver quarterly refresher sessions covering recurring errors, updated policies, and best practices for both the FNS Intake and Recertification team. Proposed Completion Date: All training will be completed by 2/28/26.

View Audit 400671

Finding 1213762 (2025-006)

Material Weakness 2025

Vance County

NC

Internal Control / Segregation of Duties Eligibility

Corrective Action: Targeted Staff Training were completed related to recertification processes, including proper handling of COVID-extended cases, accessing and working the Pending Recertification Report, proper verification and documentation of vehicles, obtaining long-term medical needs forms when...

Corrective Action: Targeted Staff Training were completed related to recertification processes, including proper handling of COVID-extended cases, accessing and working the Pending Recertification Report, proper verification and documentation of vehicles, obtaining long-term medical needs forms when required, resource verifications, and all required evidence at application and recertification. Additionally, discussions focused on clear standards for requesting information and required case documentation. A monthly Productivity Report (effective January 1, 2026) will be implemented to track individual worker output, identify backlogs early, and ensure timely completion of reviews and recertifications. Increased supervisory monitoring of worker accuracy, with corrective or disciplinary action for repeated errors. Consistent and documented follow-usp by supervisors on all errors identified to confirm corrections are made and understood. State's operational support will deliver quarterly refresher sessions covering recurring errors, updated policies, and best practices for both Family & Children’s and Adult Medicaid programs. Proposed Completion Date: All Training to be completed by 03/28/2026

View Audit 400671

Finding 1213761 (2025-001)

Material Weakness 2025

Toberman Neighborhood Center, INC

CA

Management agrees with the finding and will start the audit process earlier in the fiscal year to ensure timely completion and submission of future audits.

View Audit 400669

Finding 1213759 (2025-002)

Material Weakness 2025

Vrc-Mlcc Housing Corporation

PA

Reporting

Those charged with governance agree with the finding and will make the remaining 2025 deposit due as soon as feasible. The deposit was made April 17, 2026

View Audit 400666

Finding 1213758 (2025-001)

Material Weakness 2025

Vrc-Mlcc Housing Corporation

PA

Eligibility Reporting

Those charged with governance agreed with the finding and will work to maintain tenant files in accordance with legislation, regulations, and the terms and conditions of the major federal award program.

View Audit 400666

Finding 1213757 (2025-001)

Material Weakness 2025

Evangeline Council Housing for the Elderly, INC

FL

HUD Housing Programs Reporting

Oversight Agency for Audit, Evangeline Council Housing for the Elderly, Inc. respectfully submits the following corrective action plan for the year ended September 30, 2025. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 201, Coral Sp...

Oversight Agency for Audit, Evangeline Council Housing for the Elderly, Inc. respectfully submits the following corrective action plan for the year ended September 30, 2025. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 201, Coral Springs, Florida 33067 Audit period: October 1, 2024 through September 30, 2025 The finding from the September 30, 2025 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. SECTION III – FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT FINDING No. 2025-001: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Recommendation: Management should implement procedures to ensure that the correct amount is deposited into the replacement reserve account each month. An approved form HUD-9250 should be obtained to remove the excess funds, or a reduced deposit should be made for one month. Action Taken: The verification of the correct funding amounts is now confirmed against the approved form HUD-9250 on a monthly basis. This step has been added to the month-end close process. If the Oversight Agency for Audit has questions regarding this plan, please call Irene Phillips at 954-835-9200. Sincerely yours, Irene Phillips CFO

View Audit 400665

Finding 1213756 (2025-002)

Material Weakness 2025

Hiram College

OH

Reporting

Hiram College is in the process of restructuring its fiscal policies and procedures, which will improve internal controls and ensure timely financial reporting. Examples of this includes: Restructuring the entire Finance Department. Hiring a new Associate Vice President and Controller. Review all pe...

Hiram College is in the process of restructuring its fiscal policies and procedures, which will improve internal controls and ensure timely financial reporting. Examples of this includes: Restructuring the entire Finance Department. Hiring a new Associate Vice President and Controller. Review all personnel and make appropriate changes. Revisions to internal controls. A thorough review of all processes and provdedures making appropriate changes to ensure financial reporting is occuring in a timely manner. The College has hired a new Vice President of Finance/CFO to lead restructuring efforts.

View Audit 400663

Finding 1213751 (2025-003)

Material Weakness 2025

Hiram College

OH

Student Financial Aid

The College is addressing structural deficits in operations and cashflow through expense reductions and market-responsive academic programs to support enrollment growth. Over the past three years, management and the baord of trustees have advanced a coordinated plan centered on enrollemnt and growth...

The College is addressing structural deficits in operations and cashflow through expense reductions and market-responsive academic programs to support enrollment growth. Over the past three years, management and the baord of trustees have advanced a coordinated plan centered on enrollemnt and growth, retention, and institutional giving. The College has implemented budget reductions and continues additional strategies to address its structural deficit.

View Audit 400663

Finding 1213745 (2025-003)

Material Weakness 2025

Council on Substance Abuse Ncadd

AL

Procurement, Suspension & Debarment Significant Deficiency § 200.303

Due to changes in reimbursement and funding availability, the procurement policy and procedures will be revised to requiring at least one week prior to purchases being made unless there are extenuating circumstances, which will require an explanation on the Purchase Order Form. This policy will be r...

Due to changes in reimbursement and funding availability, the procurement policy and procedures will be revised to requiring at least one week prior to purchases being made unless there are extenuating circumstances, which will require an explanation on the Purchase Order Form. This policy will be reinforced. Expected Completion Date: Effective immediately, May 2026

View Audit 400659

Finding 1213738 (2025-002)

Material Weakness 2025

Capital Resource Conservation and Development Area Council, INC

PA

Procurement, Suspension & Debarment Period of Performance Reporting

Management will include as part of the approval of invoices, a process of follow-up with vendors near the end of the fiscal year to make sure all outstanding invoices or an estimate of costs incurred to date are received. If this is not feasible, management will estimate the unbilled costs at year e...

Management will include as part of the approval of invoices, a process of follow-up with vendors near the end of the fiscal year to make sure all outstanding invoices or an estimate of costs incurred to date are received. If this is not feasible, management will estimate the unbilled costs at year end using vendor information.

View Audit 400655

Finding 1213723 (2025-001)

Material Weakness 2025

Cypress Hills Child Care Corporation

NY

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties § 200.512

April 27, 2026 Person responsible: Teresa Council, Executive Director Fiscal Year Ended June 30, 2025 Section III – Federal Awards Findings and Questioned Costs Item 2025 – 001 Federal Assistance Listing Number: 10.558 – Child and Adult Care Food Program Federal Assistance Listing Number: 93.575 – C...

April 27, 2026 Person responsible: Teresa Council, Executive Director Fiscal Year Ended June 30, 2025 Section III – Federal Awards Findings and Questioned Costs Item 2025 – 001 Federal Assistance Listing Number: 10.558 – Child and Adult Care Food Program Federal Assistance Listing Number: 93.575 – Child Care and Development Block Grant – CCDF Cluster Condition The Organization’s Data Collection Form submission to the Federal Audit Clearinghouse was not filed on time within nine months of the end of its fiscal year. Current Status The delay in submission to the FAC was due to a combination of factors, including the extended time required to prepare the fiscal year 2025 financial statements and compile supporting documentation, as well as delays in the completion of the audit process. To support timely future submissions, the Organization will implement the recommended control procedures and adopt an internal timeline beginning with the fiscal year ending June 30, 2026. In addition, the audit process will be initiated earlier to ensure completion and submission by the established deadline of March 31, 2027.

View Audit 400620

Finding 1213722 (2025-004)

Material Weakness 2025

City of Lodi

CA

Reporting Internal Control / Segregation of Duties § 200.508 § 200.510

Management agrees with the finding and recommendations. The City will begin to implement policies and procedures to assist with monthly reconciliations and review processes to mitigate these errors in the future.

View Audit 400610

Finding 1213721 (2025-006)

Material Weakness 2025

City of Lodi

CA

Allowable Costs / Cost Principles Material Weakness Reporting

Management agrees and acknowledges the delay in issuing the financial statements. Contributing factors included staffing transitions, adjustments to policies and financial software, and the need for additional time to complete year end reconciliations. The City has since implemented process improvem...

Management agrees and acknowledges the delay in issuing the financial statements. Contributing factors included staffing transitions, adjustments to policies and financial software, and the need for additional time to complete year end reconciliations. The City has since implemented process improvements, earlier preparation of key schedules, and expanded cross training among staff. These actions are expected to support timely completion of future financial reports.

View Audit 400610

Finding 1213704 (2025-001)

Material Weakness 2025

Colorado Legal Services, INC

CO

Allowable Costs / Cost Principles § 200.403 § 200.430

Legal Services Corporation Grants – Assistance Listing No. 09.706060 Aging Cluster – Special Programs for the Aging, Title III, Part B – Assistance Listing No. 93.044 Recommendation: We recommend that the Organization consider updating its cost allocation methodology and process to reduce the freque...

Legal Services Corporation Grants – Assistance Listing No. 09.706060 Aging Cluster – Special Programs for the Aging, Title III, Part B – Assistance Listing No. 93.044 Recommendation: We recommend that the Organization consider updating its cost allocation methodology and process to reduce the frequency of manual adjustments based on review of individual time records and expense data and maximize the use of automated allocations that are calculated in a consistent manner that ensure costs are applied uniformly to respective benefited activities, and that are reflective on employees’ time and effort records. We also recommend that the Organization maintain contemporaneous documentation supporting all cost allocations. Lastly, the Organization could consider removing LSC from the general fund into its own fund, and using fringe benefit rate and indirect cost rate allocation methods to simplify its cost allocation process. Explanation of Disagreement With Audit Finding: Management partially agrees with this finding. First, 45 CFR Part 1635 codifies the timekeeping requirement. CLS keeps track of every case and time dedicated by staff in strict compliance with this requirement. Manual adjustments primarily result from planned internal reconciliations and reviews designed to ensure the accuracy of CLS allocations. These reconciliations are conducted on a monthly basis and form an integral part of the Organization’s internal control framework. Action Taken in Response to Finding: Additionally, with respect to the Native American grant transactions, CLS implemented the necessary correction to the referenced percentage effective beginning in 2026. Name of the Contact Person Responsible for Corrective Action: Silvia Zelaya, Finance Director Planned Completion Date for Corrective Action Plan: January 2027

View Audit 400608

Finding 1213690 (2025-004)

Material Weakness 2025

Colorado Legal Services, INC

CO

Procurement, Suspension & Debarment Reporting Significant Deficiency

Legal Services Corporation Grants – Assistance Listing No. 09.706060 Recommendation: We recommend that the Organization implement a control process to ensure that it complies with its reporting requirements during the grant period. Explanation of Disagreement With Audit Finding: CLS believes that th...

Legal Services Corporation Grants – Assistance Listing No. 09.706060 Recommendation: We recommend that the Organization implement a control process to ensure that it complies with its reporting requirements during the grant period. Explanation of Disagreement With Audit Finding: CLS believes that this matter would be more appropriately communicated in the management letter rather than presented as part of the overall audit report. Action Taken in Response to Finding: CLS will extend and enforce the verification of these requirements. Name of the Contact Person Responsible for Corrective Action: Silvia Zelaya, Finance Director Planned Completion Date for Corrective Action Plan: July 2026

View Audit 400608

Finding 1213689 (2025-003)

Material Weakness 2025

Colorado Legal Services, INC

CO

Significant Deficiency Internal Control / Segregation of Duties

Legal Services Corporation Grants – Assistance Listing No. 09.706060 Recommendation: We recommend that the Organization implement a control process to ensure that it obtains signed written simple agreements for all staff members who handle cases or matters or are authorized to make decisions about c...

Legal Services Corporation Grants – Assistance Listing No. 09.706060 Recommendation: We recommend that the Organization implement a control process to ensure that it obtains signed written simple agreements for all staff members who handle cases or matters or are authorized to make decisions about case acceptance where required in accordance with 45 CFR 1620.6. Explanation of Disagreement With Audit Finding: CLS believes that this matter would be more appropriately communicated in the management letter rather than presented as part of the overall audit report. Action Taken in Response to Finding: CLS implemented an onboarding process in 2025 through its HR system, BambooHR, which includes verification of this and other required elements. While this process has been applied to new hires, CLS will extend and enforce the verification of these requirements for employees who joined the organization prior to 2025. Name of the Contact Person Responsible for Corrective Action: Silvia Zelaya, Finance Director Planned Completion Date for Corrective Action Plan: July 2026

View Audit 400608

Finding 1213688 (2025-002)

Material Weakness 2025

Colorado Legal Services, INC

CO

Procurement, Suspension & Debarment Significant Deficiency Internal Control / Segregation of Duties

Legal Services Corporation Grants – Assistance Listing No. 09.706060 Recommendation: We recommend that the Organization implement a control process to ensure that it obtains LSC prior written approval where required in accordance with 45 CFR 1630.6(b). Action Taken in Response to Finding: With respe...

Legal Services Corporation Grants – Assistance Listing No. 09.706060 Recommendation: We recommend that the Organization implement a control process to ensure that it obtains LSC prior written approval where required in accordance with 45 CFR 1630.6(b). Action Taken in Response to Finding: With respect to the recommended control process, CLS has an established procedure incorporated within its accounting manual. The organization will reinforce and ensure consistent application of this procedure throughout 2026. Name of the Contact Person Responsible for Corrective Action: Silvia Zelaya, Finance Director Planned Completion Date for Corrective Action Plan: July 2026

View Audit 400608

Finding 1213655 (2025-001)

Material Weakness 2025

Parkston School District No. 33-3

SD

Procurement, Suspension & Debarment

Parkston School District Business Manager, Jason Michel, and Superintendent, Pat Mikkonen, are the contact people responsible for this corrective action. Our actions include the following for all new purchases: 1. Policy Reinforcement and Revision. The District Business Office personnel will review ...

Parkston School District Business Manager, Jason Michel, and Superintendent, Pat Mikkonen, are the contact people responsible for this corrective action. Our actions include the following for all new purchases: 1. Policy Reinforcement and Revision. The District Business Office personnel will review and update procurement policies to ensure alignment with federal and state requirements, which will help clearly define thresholds for small purchase , formal bids, and documentation expectations. 2. Staff Training. The District will provide mandatory training for all business office staff involved in purchasing that addresses the following topic areas: a) Federal procurement standards (Uniform Guidance), b) State bidding requirements, and c) District procurement policies. Training will occur annually and upon hiring of new personnel. 3. Procurement Procedures Implementation. The District will establish a standardized procurement checklist to be utilized by all business office personnel which will require: a) Documentation of quotes (minimum of 2 for small purchases), b) Public advertisement for bids when thresholds are exceeded, c) Written justification for vendor selection, d) pre-approval from the school board along with business office for all purchases exceeding $10,000. 4. Internal Review Process. The District will implement a pre-procurement review process which will be implemented by the Business Manager and the Superintendent for purchases over $10,000. The District will conduct quarterly internal audits of procurement files. 5. Documentaton Controls. The District will create and maintain a centralized procurement file (digital or physical) for all federally funded purchases and ensure all required documentation is retained and easily accessible for audit.

View Audit 400591

Finding 1213650 (2025-004)

Material Weakness 2025

City of Lynwood

CA

Internal Control / Segregation of Duties Eligibility HUD Housing Programs § 200.303 § 200.334

Management acknowledges the auditors’ review of HUD HOME eligibility testing. We believe our current processes generally comply with HUD requirements; however, we recognize the opportunity to strengthen controls. To address the auditors’ comments, we will enhance our eligibility verification procedu...

Management acknowledges the auditors’ review of HUD HOME eligibility testing. We believe our current processes generally comply with HUD requirements; however, we recognize the opportunity to strengthen controls. To address the auditors’ comments, we will enhance our eligibility verification procedures, improve documentation consistency, and provide additional staff training. These corrective actions will help ensure ongoing compliance and accuracy in eligibility determinations. Personnel Responsible for Implementation: Meredith Elguira Position of Responsible Personnel: Community Development Director Expected Date of Implementation: April 30, 2026

View Audit 400567

Finding 1213649 (2025-002)

Material Weakness 2025

City of Lynwood

CA

Allowable Costs / Cost Principles § 200.414

The City will implement a policy directing City staff that, if allowed, grant applications should include the option to charge indirect costs for the execution of the grant work. Upon grant application submissions, the department submitting the grant will coordinate with the Senior Finance Analyst t...

The City will implement a policy directing City staff that, if allowed, grant applications should include the option to charge indirect costs for the execution of the grant work. Upon grant application submissions, the department submitting the grant will coordinate with the Senior Finance Analyst to provide indirect cost rates and/or charges. As it relates to CDBG and HOME Program Grants, the Finance and Administration Department, in conjunction with the Community Development Director, will conduct a year-end review to ensure allowable indirect costs are appropriately charged. Personnel Responsible for Implementation: Meredith Elguira, Carol Molina, Ralston Turner Position of Responsible Personnel: Interim Community Development Director, Interim Finance and Administration Director, Senior Finance Analyst Expected Date of Implementation: April 30, 2026

View Audit 400567

Finding 1213640 (2025-003)

Material Weakness 2025

City of Lynwood

CA

Procurement, Suspension & Debarment Subrecipient Monitoring Eligibility

The Finance and Administration Department will create an internal policy requiring a copy of the SAM.gov search results for the vendor, including the date of the search, and store the documentation in the appropriate grant file. Further, the policy will require a sign-off process where the vendor pa...

The Finance and Administration Department will create an internal policy requiring a copy of the SAM.gov search results for the vendor, including the date of the search, and store the documentation in the appropriate grant file. Further, the policy will require a sign-off process where the vendor payment cannot be finalized without a "Debarment Check Complete". The Finance and Administration Department will include quality control checks and perform regular internal audits of a sample of vendor files related to grants to check for the presence of the Suspension and Debarment Check. Personnel Responsible for Implementation: Meredith Elguira, Carol Molina, Ralston Turner Position of Responsible Personnel: Interim Community Development Director, Finance and Administration Director, Senior Finance Analyst Expected Date of Implementation: April 30, 2026

View Audit 400567

Finding 1213612 (2025-003)

Material Weakness 2025

McIntosh Senior Living

MN

Special Tests & Provisions Material Weakness Matching / Level of Effort / Earmarking § 200.303

Federal Agency Name: United States Department of Agriculture Program Name: Community Facilities Loans and Grants Cluster Federal Assistance Listing #10.766 Finding Summary: The Organization did not have an adequate internal control policy in place to ensure the reserve account was separately tracked...

Federal Agency Name: United States Department of Agriculture Program Name: Community Facilities Loans and Grants Cluster Federal Assistance Listing #10.766 Finding Summary: The Organization did not have an adequate internal control policy in place to ensure the reserve account was separately tracked and a documented review and approval over the reserve fund occurred. Responsible Individuals: Sharlene Knutson, Administrator Corrective Action Plan: We have adopted a policy to enhance internal control to ensure the reserve fund reconciliation has a secondary review and approval that is documented. Anticipated Completion Date: 6/30/2026

View Audit 400561

Finding 1213611 (2025-002)

Material Weakness 2025

YMCA of Greater Boston

MA

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

Management will update its procurement policies and procedures to require formal evidence that suspension and debarment checks are completed prior to entering into contracts. This will include requiring staff to sign/initial, and date SAM.gov verification screenshots or reports, or alternatively, ob...

Management will update its procurement policies and procedures to require formal evidence that suspension and debarment checks are completed prior to entering into contracts. This will include requiring staff to sign/initial, and date SAM.gov verification screenshots or reports, or alternatively, obtain vendor certifications confirming their status. Training will be provided for relevant personnel to ensure consistent implementation of the revised procedures.

View Audit 400545

Finding 1213608 (2025-001)

Material Weakness 2025

YMCA of Greater Boston

MA

Eligibility Period of Performance Significant Deficiency § 200.303

Management will conduct a comprehensive review of existing processes and internal controls related to eligibility determination and documentation to ensure alignment with federal requirements. As part of this effort, management will evaluate the timing and sequencing of required signatures to better...

Management will conduct a comprehensive review of existing processes and internal controls related to eligibility determination and documentation to ensure alignment with federal requirements. As part of this effort, management will evaluate the timing and sequencing of required signatures to better reflect operational realities while maintaining compliance.

View Audit 400545

Corrective Action Plans

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