Corrective Action Plans

Finding 1179567 (2025-001)

Material Weakness 2025

The Center for Youth and Family Solutions

IL

Internal Control / Segregation of Duties Questioned Costs Allowable Costs / Cost Principles

2025-001 Period of Performance Recommendation: We recommend that the Center implement specific controls around cut off for expenditures to ensure expenditures are recorded in the proper period in accordance with the grant. Explanation of disagreement with audit finding: There is no disagreement with...

2025-001 Period of Performance Recommendation: We recommend that the Center implement specific controls around cut off for expenditures to ensure expenditures are recorded in the proper period in accordance with the grant. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: We will monitor expenditures closely to ensure expenditures are recorded in the proper period. Name(s) of the contact person(s) responsible for corrective action: Greg Miller Planned completion date for corrective action plan: April 2026 If the U.S. Department of Health and Human Services has questions regarding this plan, please call Greg Miller at 309-323-6609.

View Audit 391958

Finding 1179565 (2025-001)

Material Weakness 2025

New England Institute of Technology

RI

Student Financial Aid Questioned Costs Reporting

Finding - Special Reporting: Fiscal Operations Report and Application to Participate (FISAP) - Federal Work Study Program, Assistance Listing Number 84.033, Federal Supplemental Educational Opportunity Grants Program, Assistance Listing Number 84.007; June 30, 2025 Award Year; U.S. Department of Edu...

Finding - Special Reporting: Fiscal Operations Report and Application to Participate (FISAP) - Federal Work Study Program, Assistance Listing Number 84.033, Federal Supplemental Educational Opportunity Grants Program, Assistance Listing Number 84.007; June 30, 2025 Award Year; U.S. Department of Education Condition The graduate enrollment figure at Section D line 7(b) included an additional 51 students on the FISAP submitted on September 29, 2025. Corrective Actions During our compliance audit it came to light that New England Institute of Technology accidentally overstated the quantity of graduate students on our FISAP that was filed originally on September 29, 2025, by 51 students. We immediately revised the FISAP to make the correction and filed it with the Department of Education on December 9, 2025. New England Institute of Technology will implement a process to compare the system-generated enrollment reports to enrollment data to ensure enrollment information this is reported on the FISAP is accurate. Responsible Official: Denise Brindle, Financial Aid Director Completion Date: December 2025

View Audit 391941

Finding 1179557 (2025-001)

Material Weakness 2025

Town of Nantucket, Massachusetts

MA

Questioned Costs Period of Performance § 200.309

Condition: Costs were charged to the grants for invoices with service dates prior to the start of the grant period and payroll and related benefits earned prior to the start of the grant period. Corrective Action Planned: We had budgeted the full cost of one teacher and four teaching assistances in ...

Condition: Costs were charged to the grants for invoices with service dates prior to the start of the grant period and payroll and related benefits earned prior to the start of the grant period. Corrective Action Planned: We had budgeted the full cost of one teacher and four teaching assistances in the IDEA 240 grant for 2025. The approval process for the grant took longer than expected, our intent was always to comply, but we do realize we should have waited for the approval to be in place prior to charging the costs of these employees to the grant. In the future we will wait for the approval process to be complete and will then charge the employees there. Anticipated Completion Date: Completed Contact: Martin Anguelov, Chief Financial Officer for Nantucket Public Schools and Deb Gately, Director of Special Education for Nantucket Public Schools

View Audit 391927

Finding 1179552 (2025-002)

Material Weakness 2025

Chambersburg Area School District

PA

Special Tests & Provisions Questioned Costs Material Weakness

Material Weakness in Internal Control over Compliance and Compliance 2025-002 Special Tests and Provisions. Criteria The District is required to maintain records that support the removal of a student from the adjusted cohort, such as documentation to transfer to another diploma granting program, emi...

Material Weakness in Internal Control over Compliance and Compliance 2025-002 Special Tests and Provisions. Criteria The District is required to maintain records that support the removal of a student from the adjusted cohort, such as documentation to transfer to another diploma granting program, emigration, consistent with federal reporting requirements. Statement of Condition We identified instances in which the District had students removed from the adjusted cohort, but did not maintain sufficient written documentation to support the removal. Statement of Cause The District did not have adequate procedures to ensure that the documentation supporting adjusted cohort removals was obtained, reviewed, and retained. Possible Asserted Effect Without appropriate documentation supporting removal of students from the adjusted cohort, the District is unable to demonstrate compliance with federal record keeping requirements. Questioned Costs None noted. Context A sample of 25 students that had withdrawn was selected and 3 student files were not able to be provided. Repeat Finding: This is not a repeat finding. Recommendation We recommend that a process be implemented to ensure appropriate written documentation is maintained for all student withdraws. Views of responsible officials and planned corrective action To ensure compliance with this standard in the future, we have created a specific folder within our Student Information System for uploading and maintaining all withdrawal paperwork. All staff responsible for processing withdrawals have received instructions for this updated procedure via email and the guidance has also been added to the Secretary’s Manual.

View Audit 391921

Finding 1179550 (2025-001)

Material Weakness 2025

Chambersburg Area School District

PA

Procurement, Suspension & Debarment § 200.317 § 200.320 § 200.327

Material Weakness in Internal Control over Compliance and Compliance 2025-001 Procurement, Suspension, and Debarment. Criteria The District is required to maintain and use documented procurement procedures for procurement transactions under federal awards. Noncompetitive procurement (sole source) ma...

Material Weakness in Internal Control over Compliance and Compliance 2025-001 Procurement, Suspension, and Debarment. Criteria The District is required to maintain and use documented procurement procedures for procurement transactions under federal awards. Noncompetitive procurement (sole source) may be used if specific circumstances in the Uniform Guidance are met. Statement of Condition The District procured IDEA services through the LIU using a noncompetitive (sole source) approach. The District did not retain documentation in the procurement file to support the basis for noncompetitive procurement. Statement of Cause The District did not consistently follow documented procurement procedures for the IDEA program and the procedures. Possible Asserted Effect Without documentation supporting the noncompetitive procurement method, the District is not able to demonstrate compliance with federal procurement requirements applicable to IDEA. Questioned Costs None noted. Context One vendor was utilized and there was not appropriate documentation maintained of procurement regarding the services. Repeat Finding This is not a repeat finding. Recommendation We recommend that a process be implemented to review the services provided under the IDEA program to ensure procurement documentation is appropriately maintained. Views of responsible officials and planned corrective action To ensure compliance with this standard in the future, the Assistant to the Chief Financial and Operations Officer will provide the Director of Special Education and the Superintendent with the Sole Source Justification form by July 1st of each year. The Director of Special Education and the Superintendent will be responsible for completing the Sole Source Justification form and submitting a copy of the signed document to the Business Office. The Special Education Financial Secretary will attach the Sole Source Justification form to the purchase requisition for services from the Franklin Learning Center for the IDEA-qualified students.

View Audit 391921

Finding 1179549 (2025-002)

Material Weakness 2025

International Rescue Committee, Inc.

NY

Subrecipient Monitoring Reporting Procurement, Suspension & Debarment § 200.303

2025-002 Reporting - Federal Funding Accountability and Transparency Act Federal Agencies: U.S. Department of State/Bureau of Population and Refugees and Migration, and U.S. Agency for International Development Program Titles and ALN Numbers: 1. ALN #19.519: Overseas Refugee Assistance Programs for ...

2025-002 Reporting - Federal Funding Accountability and Transparency Act Federal Agencies: U.S. Department of State/Bureau of Population and Refugees and Migration, and U.S. Agency for International Development Program Titles and ALN Numbers: 1. ALN #19.519: Overseas Refugee Assistance Programs for Middle East and North Africa 2. ALN #19.523: Overseas Refugee Assistance Program for South Asia. 3. ALN #98.001: United States Foreign Assistance for Programs Overseas Federal Grant Numbers: 1. SPRMCO24CA0321 - Provision of lifesaving protection & health response for Syrian refugees and vulnerable Lebanese 2. SPRMCO24CA0239- Comprehensive, Integrated Multi-Sector Response for Rohingya Refugees and Host Communities in Cox’s Bazar (Y2) 3. 72052224CA00004 - Improved (Re)integration Services Activity. 4. 720BHA22GR00218- Lifesaving Integrated Humanitarian Services in Underserved Areas of Sudan Contact Person: Rick Estridge, Controller, rick.estridge@rescue.org, (443)890-0915 Corrective Action: The following corrective action will be taken to ensure the documentation for timely FFATA reporting in SAM.Gov is clearly evidenced: a. All staff responsible for entering FFATA details in Sam.Gov will be required to obtain a screenshot when the report is submitted to Sam.Gov showing the date of submission. Anticipated Completion Date: September 30, 2026

View Audit 391920

Finding 1179547 (2025-001)

Material Weakness 2025

International Rescue Committee, Inc.

NY

Allowable Costs / Cost Principles § 200.303 § 200.403

2025-001-Activities Allowed or Unallowed and Allowable Costs/Cost Principles - Beneficiary Payments Federal Agencies: U.S. Department of State/ Bureau of Population and Refugees and Migration Program Titles and ALN Numbers: 1. ALN #19.510: U.S. Refugee Admissions Program Federal Grant Numbers: 1. SP...

2025-001-Activities Allowed or Unallowed and Allowable Costs/Cost Principles - Beneficiary Payments Federal Agencies: U.S. Department of State/ Bureau of Population and Refugees and Migration Program Titles and ALN Numbers: 1. ALN #19.510: U.S. Refugee Admissions Program Federal Grant Numbers: 1. SPRMCO23CA0361- FY24 MRA Capacity Development Funds 2. SPRMCO24CA0356- FY2023-25 Year 3 Reception and Placement Program - Affiliate MRA DA+Admin 3. SPRMCO24CA0357- FY2023-25 Year 3 Reception and Placement Program - Affiliate ERMA DA+Admin Contact Person: Rick Estridge, Controller, rick.estridge@rescue.org, (443)890-0915 Corrective Action: IRC’s management has taken several steps to stop fraudulent activities, prevent new fraud and improve IRC’s ability to detect future fraud. a. Upon identifying potentially unauthorized and fraudulent fund requests, all program office access to the USIO bank portal was immediately suspended. USIO debit card loads were centralized, and this process remains in place. b. Nine staff potentially involved in those activities were placed on leave during the investigation; five were eventually terminated. Following investigations, the IRC has made significant changes in leadership in structure in Northern California. By the end of June 2026, new Finance, Operations, and Program Delivery leadership will be in place, and the office will be broken down into two smaller offices, each with its own Executive Director. c. Working visits and in-person training on fraud prevention have been and will continue to be delivered to reinforce IRC’s compliance standards in all offices engaged in direct client payments. Additionally, network wide training are being provided focused on on compliance, CFR and fraud prevention for all staff. New policies on pre-paid cards and gift cards have also been issued. d. A Financial Analyst position was created under the RAI Head of Finance to focus on compliance. The analyst performs quarterly sample-based spot checks across all U.S. network offices, randomly selecting transactions for end-to-end review, including USIO payments. An automated tool also flags potential non-compliance issues such as irregular p-card payments and gift card purchases – vulnerabilities that could be exploited in NorCal-like situations. The RAI Head of Finance then compiles quarterly compliance reports for office leadership, highlighting areas for improvement. Anticipated Completion Date: June 30, 2026

View Audit 391920

Finding 1179536 (2025-002)

Material Weakness 2025

Berkshire Housing Development Corporation and Subsidiary Berkshire Housing Services, Inc.

MA

Internal Control / Segregation of Duties Significant Deficiency § 200.512

Audit Finding Reference: 2025-002 Timely Filing of Single Audit Report Planned Corrective Action Management will collaborate proactively with the external auditors to ensure the timely completion of the audit and submission of the Data Collection Form (DCF) in accordance with applicable regulatory d...

Audit Finding Reference: 2025-002 Timely Filing of Single Audit Report Planned Corrective Action Management will collaborate proactively with the external auditors to ensure the timely completion of the audit and submission of the Data Collection Form (DCF) in accordance with applicable regulatory deadlines. Planned Implementation Date of Corrective Action March 2026, for the FY2025 submission. Person Responsible for Corrective Action Chief Financial Officer

View Audit 391917

Finding 1179523 (2025-001)

Material Weakness 2025

Clinton Central School Corporation

IN

Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.303 § 200.403

FINDING 2025-001 Finding Subject: Twenty-First Century Community Learning Centers – Activities Allowed or Unallowed, Allowable Costs/Cost Principles Contact Person Responsible for Corrective Action: April Boone and Levi Yowell Contact Phone Number and Email Address: 765-249-2515; april.boone@clinton...

FINDING 2025-001 Finding Subject: Twenty-First Century Community Learning Centers – Activities Allowed or Unallowed, Allowable Costs/Cost Principles Contact Person Responsible for Corrective Action: April Boone and Levi Yowell Contact Phone Number and Email Address: 765-249-2515; april.boone@clinton.k12.in.us; levi.yowell@clinton.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Per written directive from our Superintendent, Mr. Yowell on November 14, 2025, the following steps are being implemented to provide better oversight over the Twenty-First Century Program. 1. Multiple signatures are now required on all payroll, including the CCE Principal, Site Coordinator, CCSC Treasurer, and Superintendent 2. Immediately discontinuing the unallowable expenses as shared by the SBOA auditors 3. Required approval for all purchases from Site Coordinator, CCE Principal, CCSC Treasurer, and Superintendent. On December 15, 2025, the School Board will be reviewing and considering the approval of a District Financial Authority Oversight Resolution. This resolution will better define who has financial oversight and authority for all spending within the corporation. Anticipated Completion Date: November 14, 2025 and December 15, 2025 (Note: Provide the projected date of completion of major tasks for the planned corrective actions described above.)

View Audit 391913

Finding 1179517 (2025-001)

Material Weakness 2025

Ocean State Research Institute, Inc.

RI

Allowable Costs / Cost Principles § 200.405

Planned Corrective Action: After review, it was determined that the wrong indirect rate was applied to a project. The overcharged amount was $1,461.69. The prime of this project was an industry sponsor and a CRADA was necessary for this work to be completed. It is the belief of the current OSRI mana...

Planned Corrective Action: After review, it was determined that the wrong indirect rate was applied to a project. The overcharged amount was $1,461.69. The prime of this project was an industry sponsor and a CRADA was necessary for this work to be completed. It is the belief of the current OSRI management that the error accurred due to confusion that the funds came from an industry sponsor and not a federal agency. To correct this error, management will issue a payment of $1,461.69 to the sponsor. Planned Implementation Date of Corrective Action: Three inquiries were made by CBIZ on 1/5/26 regarding indirects charged by OSRI. On 1/6/26 OSRI management responded clearing up two of the three inquiries showing that the total indirects charged based on direct numbers were correct and that an adjustment had been made during the fiscal year in question to correct prior short falls. After a thorough review of the third inquiry, OSRI management on 1/8/26 reached out to the industry sponsor to inform them of our error and payment reimbursement was initiated. On 1/16/26 the industry sponsor confirmed receipt and cashed check for reimbursement.

View Audit 391892

Finding 1179478 (2025-001)

Material Weakness 2025

Reynolds School District

OR

Procurement, Suspension & Debarment § 200.317 § 200.327

Finding 2025-001 Procurement – Significant Deficiency Condition: Procurement policies are not aligned with Uniform Guidance (2 CFR 200.317–200.327). Corrective Action Plan: Develop, adopt, and maintain written procurement policies fully aligned with Uniform Guidance, and establish annual review and ...

Finding 2025-001 Procurement – Significant Deficiency Condition: Procurement policies are not aligned with Uniform Guidance (2 CFR 200.317–200.327). Corrective Action Plan: Develop, adopt, and maintain written procurement policies fully aligned with Uniform Guidance, and establish annual review and update process. Responsible Official: Holly Langan, Managing Officer for Financial Services Timeline: Implementation completed by August 31, 2026.

View Audit 391885

Finding 1179453 (2025-004)

Material Weakness 2025

Reynolds School District

OR

Period of Performance Matching / Level of Effort / Earmarking

Finding 2025-004 Supplanting Controls – Significant Deficiency Condition: Lack of controls to prevent supplanting in the Student Support and Academic Enrichment program; presumption of supplanting rebutted but controls not in place. Corrective Action Plan: Implement pre-award and annual budget revie...

Finding 2025-004 Supplanting Controls – Significant Deficiency Condition: Lack of controls to prevent supplanting in the Student Support and Academic Enrichment program; presumption of supplanting rebutted but controls not in place. Corrective Action Plan: Implement pre-award and annual budget review procedures to document that state/local funds are not used for activities proposed for federal funding and document any rebuttals in grant and budget records. Responsible Official: Holly Langan, Managing Officer for Financial Services Timeline: Implementation completed by June 30, 2026. 113

View Audit 391885

Finding 1179450 (2025-002)

Material Weakness 2025

Benedict College

SC

Student Financial Aid Reporting Significant Deficiency

FISAP Reporting Planned Corrective Action: At the time of preparation of the FISAP report by the Financial Aid Office, electronic database reports used for preparation will be archived and attached to the report. The report will be reviewed the Vice President of Enrollment Management and the Vice Pr...

FISAP Reporting Planned Corrective Action: At the time of preparation of the FISAP report by the Financial Aid Office, electronic database reports used for preparation will be archived and attached to the report. The report will be reviewed the Vice President of Enrollment Management and the Vice President for Finance and Operations/CFO. Both reviewers will be provided the detailed reports that agree to the data reported. The review will consist of ensuring that the data on the database source, PowerFAIDS, is accurate and agrees with the reported data. Reviewer will run directly from the PowerFAIDS system a report consistent with the time frame of the FISAP and determine that the report agrees with the report attached to the FISAP submitted for review. Person Responsible for Corrective Action Plan: Ms. Monique Rickenbaker, Director of Financial Aid Mr. Yohannis Job, VP for Enrollment Management Dr. Sharron T. Burnett, VP for Finance and Operations/CFO Anticipated Date of Completion: June 30, 2026

View Audit 391877

Finding 1179448 (2025-001)

Material Weakness 2025

Yeshiva University

NY

Student Financial Aid Reporting

Management Views and Corrective Action Plans 2025-001 - Untimely submissions of Accurate Student Enrollment Change to the National Student Loan Data System (NSLDS) Point of Contact – Jennifer Spiegel Goldberg, University Registrar, (646-592-6275) Management agrees with the current year’s finding and...

Management Views and Corrective Action Plans 2025-001 - Untimely submissions of Accurate Student Enrollment Change to the National Student Loan Data System (NSLDS) Point of Contact – Jennifer Spiegel Goldberg, University Registrar, (646-592-6275) Management agrees with the current year’s finding and recommendation to review its policies and controls for accurate and timely enrollment reporting by establishing a process to ensure that all required program and campus level status changes are reported to NSLDS and are reported within the required 60-day timeframe. Yeshiva University’s dual curriculum, multi-college undergraduate system, as well as some graduate programs allow students changes during enrollment that can result in extraneous degree records no longer linked to the student’s enrolled program. This circumstance and finding occurred because a graduation application was mistakenly applied to an extraneous record and carried through to conferred degree, which the NSC reporting system could not detect. A script has been in place since January 13, 2026, to run overnight to detect “orphan” degree records and ensure that only records that match current enrollment are available removing the potential for this to occur moving forward. The student identified during the audit as requiring remedy has been remedied in NSLDS as of November 19, 2025.

View Audit 391873

Finding 1179444 (2025-008)

Material Weakness 2025

Cloquet Housing and Redevelopment Authority

MN

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

View of Responsible Official: Management agrees with the Finding. During the last fiscal year, the Executive Director consulted with other public housing agencies in the region and learned that many rely on the firm Nelrod to accurately identify and validate the supporting data used to establish uti...

View of Responsible Official: Management agrees with the Finding. During the last fiscal year, the Executive Director consulted with other public housing agencies in the region and learned that many rely on the firm Nelrod to accurately identify and validate the supporting data used to establish utility allowances. Nelrod conducts a comprehensive Utility Allowance Survey and Study, which provides the detailed analysis needed to develop a more reliable Utility Allowance Table for the applicable fiscal year. Based on this information, we have adopted a policy to contract with Nelrod to prepare the Utility Allowance Study beginning in fiscal year 2025–2026

View Audit 391864

Finding 1179443 (2025-007)

Material Weakness 2025

Cloquet Housing and Redevelopment Authority

MN

HUD Housing Programs

View of Responsible Official: Management agrees with the Finding. To support long term sustainability, administrative fees are reviewed on a biweekly basis to identify opportunities for cost reduction or absorption while the program continues to stabilize and grow. These measures are intended to ens...

View of Responsible Official: Management agrees with the Finding. To support long term sustainability, administrative fees are reviewed on a biweekly basis to identify opportunities for cost reduction or absorption while the program continues to stabilize and grow. These measures are intended to ensure that the program remains compliant, financially sound, and operationally viable on an annual basis

View Audit 391864

Finding 1179442 (2025-001)

Material Weakness 2025

Marist College and Affiliates

NY

Student Financial Aid

Finding 2025-001: Special Tests and Provisions - NSLDS Reporting (Significant Deficiency) U.S. Department of Education – Student Financial Assistance Cluster Federal Pell Grant Program (84.063) Federal Direct Loan Program (84.268) View of Responsible Officials and Planned Corrective Action: With res...

Finding 2025-001: Special Tests and Provisions - NSLDS Reporting (Significant Deficiency) U.S. Department of Education – Student Financial Assistance Cluster Federal Pell Grant Program (84.063) Federal Direct Loan Program (84.268) View of Responsible Officials and Planned Corrective Action: With respect to the findings relating to the timeliness of enrollment reporting, the University agrees with this finding and will take appropriate actions to improve processes to ensure enrollment status records are updated timely in the NSLDS at both the Campus-Level and Program-Level. Corrective Plan: • Reporting Calendar for All Branch Campuses o Ensure reporting calendar accommodates each branch campus at the University • Timely Enrollment Status Updates - Branch Campuses o Ensure completion is entered in SIS prior to the submission of the last enrollment file submitted for that term • Tracking Students Completing Outside of Original Cohort o Early completion o Late completion • Reporting Status Changes Outside the Standard Reporting Calendar o Process developed to report these students individually Name of Contact Person(s) Responsible for the Plan: Michael Lewis, Registrar Michael.lewis5@marist.edu Anticipated Completion Date: April 30, 2026

View Audit 391855

Finding 1179440 (2025-005)

Material Weakness 2025

Municipality of Naranjito

PR

Procurement, Suspension & Debarment Subrecipient Monitoring Reporting § 200.302 § 200.328 § 200.329

COMMONWEALTH OF PUERTO RICO CORRECTIVE ACTION PLAN MUNICIPALITY OF NARANJITO FOR THE FISCAL YEAR ENDED JUNE 30, 2025 Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and 2 CFR 200 Uniform Administrative Requirements, Cost Principles, and Audit...

COMMONWEALTH OF PUERTO RICO CORRECTIVE ACTION PLAN MUNICIPALITY OF NARANJITO FOR THE FISCAL YEAR ENDED JUNE 30, 2025 Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and 2 CFR 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Audit Period: July 1, 2024 – June 30, 2025 Fiscal Year: 2024-2025 Principal Executive: Hon. Orlando Ortíz Chevres - Mayor Contact Person: Mrs. Meyleen Hernández, Finance Director Phone: (787) 869 – 2200 Finding Reference Number: 2025-005 Federal Award: Disaster Grants – Public Assistance (Presidentially Declared Disaster) (ALN 97.036) Compliance Requirement: Reporting (L) Type of Finding: Significant Deficiency in Internal Controls (SD), Instance of Noncompliance (NC) Description of Finding: In our Reporting Test, we evaluated the Quarterly Progress Reports of a total of eleven (11) projects for two quarters of fiscal year 2024-2025. During our audit procedures, we noted that the reports did not agree with the accounting and project records. Auditor’s Recommendations: We recommend that Program Administrators reconcile the differences between the quarterly report and the accounting records before the submission of the next submission to the pass-through entity. Corrective Action: We understand that only two reports did not agree with the accounting records. We have consultants that are responsible for the preparation of these reports. Instructions were given to the consultants in order to correct the reports that do not agree with the accounting records. There was a misunderstanding with the reports, in which the pass-through entity instructed that purchase orders and expenditures incurred should be reported. As subsequently clarified, only the expenditures incurred should be reported as expended. Name of Contact Person: Meyleen Hernández Rivera, Finance Director Projected Completion Date: June 30, 2026

View Audit 391846

Finding 1179439 (2025-007)

Material Weakness 2025

Municipality of Naranjito

PR

Eligibility Significant Deficiency Internal Control / Segregation of Duties

COMMONWEALTH OF PUERTO RICO CORRECTIVE ACTION PLAN MUNICIPALITY OF NARANJITO FOR THE FISCAL YEAR ENDED JUNE 30, 2025 Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and 2 CFR 200 Uniform Administrative Requirements, Cost Principles, and Audit...

COMMONWEALTH OF PUERTO RICO CORRECTIVE ACTION PLAN MUNICIPALITY OF NARANJITO FOR THE FISCAL YEAR ENDED JUNE 30, 2025 Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and 2 CFR 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Audit Period: July 1, 2024 – June 30, 2025 Fiscal Year: 2024-2025 Principal Executive: Hon. Orlando Ortíz Chevres - Mayor Contact Person: Mrs. Meyleen Hernández, Finance Director Phone: (787) 869 – 2200 Finding Reference Number: 2025-007 Federal Award: Child Care and Development Block Grant (ALN 93.575) Compliance Requirement: Eligibility (E) Type of Finding: Significant Deficiency (SD), Instance of Noncompliance (NC) Description of Finding: During our audit procedures, we evaluated four (4) participants files, and we found that two (2) of them do not have the Eligibility Certification. For that reason, we could not validate the eligibility of these participants. Auditor’s Recommendations: Management must implement internal control to ensure that the eligible participant is properly documented at the time of receiving services. Corrective Action: The Municipality will take steps to request the documentation again from the two participants for whom the corresponding eligibility certification was unavailable. In addition, instructions will be issued to ensure that all participants' eligibility documentation is reviewed periodically. Name of Contact Person: Responsible Person: Aracelis Fuentes Rodríguez, Child Care Center Director Completion Date: June 30, 2026

View Audit 391846

Finding 1179438 (2025-006)

Material Weakness 2025

Municipality of Naranjito

PR

Matching / Level of Effort / Earmarking Subrecipient Monitoring Allowable Costs / Cost Principles

COMMONWEALTH OF PUERTO RICO CORRECTIVE ACTION PLAN MUNICIPALITY OF NARANJITO FOR THE FISCAL YEAR ENDED JUNE 30, 2025 Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and 2 CFR 200 Uniform Administrative Requirements, Cost Principles, and Audit...

COMMONWEALTH OF PUERTO RICO CORRECTIVE ACTION PLAN MUNICIPALITY OF NARANJITO FOR THE FISCAL YEAR ENDED JUNE 30, 2025 Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and 2 CFR 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Audit Period: July 1, 2024 – June 30, 2025 Fiscal Year: 2024-2025 Principal Executive: Hon. Orlando Ortíz Chevres - Mayor Contact Person: Mrs. Meyleen Hernández, Finance Director Phone: (787) 869 – 2200 Finding Reference Number: 2025-006 Federal Award: Child Care and Development Block Grant (ALN 93.575) Compliance Requirement: Earmarking (G) Type of Finding: Significant Deficiency in Internal Controls (SD), Instance of Noncompliance (NC) Description of Finding: In our Earmarking Test, we found that the Municipality did not spend the required percentages according to the cost limitations and minimum required amounts of the approved budget for the categories of administration, quality services and quality services for children and infants. Auditor’s Recommendations: Management should take the necessary steps to ensure that the Program complies with the quality earmarking requirements. Corrective Action: The Municipality has appointed as the official responsible the Finance Director for monitoring and reviewing compliance. Internal control procedures have been established to properly document and monitor the expenditure incurred and prospective obligations, and if the required amount or percentage cannot be spent, a waiver will be requested. Name of Contact Person: Meyleen Hernández Rivera, Finance Director Projected Completion Date: June 30, 2026

View Audit 391846

Finding 1179437 (2025-003)

Material Weakness 2025

Municipality of Naranjito

PR

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting § 200.1

COMMONWEALTH OF PUERTO RICO CORRECTIVE ACTION PLAN MUNICIPALITY OF NARANJITO FOR THE FISCAL YEAR ENDED JUNE 30, 2025 Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and 2 CFR 200 Uniform Administrative Requirements, Cost Principles, and Audit...

COMMONWEALTH OF PUERTO RICO CORRECTIVE ACTION PLAN MUNICIPALITY OF NARANJITO FOR THE FISCAL YEAR ENDED JUNE 30, 2025 Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and 2 CFR 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Audit Period: July 1, 2024 – June 30, 2025 Fiscal Year: 2024-2025 Principal Executive: Hon. Orlando Ortíz Chevres - Mayor Contact Person: Mrs. Meyleen Hernández, Finance Director Phone: (787) 869 – 2200 Finding Reference Number: 2025-003 Federal Award: Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing No. 21.027) Compliance Requirement: Reporting (L) Type of Finding: Significant Deficiency (SD), Instance of Noncompliance (NC) Description of Finding: In our Reporting Test, we evaluated the Project and Expenditure Report submitted to the U.S. Department of Treasury during fiscal year 2024-2025. During our audit procedures, we identified differences between the amounts reported as current period expenditures, and the amounts recognized in the accounting system. Additionally, during the fiscal year the Municipality received new funds called Service of Excellence to Citizens also related to the Coronavirus State and Local Fiscal Recovery Funds Program. This allocation was granted through the Puerto Rico Fiscal Agency and Financial Advisory Authority. In our Reporting Test, we evaluated six (6) reports and could not validate their submission. Auditor’s Recommendations: We recommend training for the authorized personnel who administer the program, to better understand the reporting requirements and prepare timely reports. The Municipality should establish a monitoring system to ensure compliance with requirements established by the passthrough agency such as: submitting the reports during the required time frame and where the fund expenses will be reported as incurred. This will ensure better control of the program. Corrective Action: The authorized personnel understand the reporting requirements. We are in the process of training additional personnel to have more resources to comply with all reporting requirements. The Finance Department is working with external consultants to address this situation, and be able to comply with all reports as required. Name of Contact Person: Meyleen Hernández Rivera, Finance Director Projected Completion Date: June 30, 2026

View Audit 391846

Finding 1179435 (2025-004)

Material Weakness 2025

Municipality of Naranjito

PR

Subrecipient Monitoring § 200.332

COMMONWEALTH OF PUERTO RICO CORRECTIVE ACTION PLAN MUNICIPALITY OF NARANJITO FOR THE FISCAL YEAR ENDED JUNE 30, 2025 Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and 2 CFR 200 Uniform Administrative Requirements, Cost Principles, and Audit...

COMMONWEALTH OF PUERTO RICO CORRECTIVE ACTION PLAN MUNICIPALITY OF NARANJITO FOR THE FISCAL YEAR ENDED JUNE 30, 2025 Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and 2 CFR 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Audit Period: July 1, 2024 – June 30, 2025 Fiscal Year: 2024-2025 Principal Executive: Hon. Orlando Ortíz Chevres - Mayor Contact Person: Mrs. Meyleen Hernández, Finance Director Phone: (787) 869 – 2200 Finding Reference Number: 2025-004 Federal Award: Community Development Block Grant/State’s Program and Non-Entitlement Grants in Hawaii (Assistance Listing No. 14.228) Compliance Requirement: Reporting (L) Type of Finding: Significant Deficiency (SD), Instance of Noncompliance (NC) Description of Finding: In our reporting test, we evaluate four (4) quarterly reports and two (2) of them were not submitted and one (1) was submitted late. Additionally, two (2) quarterly reports that were submitted do not agree with the accounting records. Auditor’s Recommendations: We recommend that the Municipality maintain constant monitoring to improve program controls. The reports must be presented as established in the agreement and guidelines of the Department of Housing. This will ensure compliance with the reporting requirements under the Community Development Block Grants/State’s Program and Non-entitlement Grant in Hawaii agreement. Corrective Action: The Municipality appointed a person to work on all the required reports and instructed them on the deadlines that apply. We were able to submit all past reports on January 2025. And subsequently we are complying with the reporting requirements. In addition, we established the following internal controls: 1. An accountant was hired to assume direct responsibility for the preparation, review, and filing of the CDBG Program's financial and programmatic reports. 2. Technical guidance was requested from and received from the Department of Housing to ensure the proper preparation and compliance with applicable reporting requirements. 3. All overdue quarterly reports and corresponding reports through December 2025 were filed, including the reconciliation of requisitioned versus paid balances. 4. An internal compliance schedule, with deadlines and administrative oversight, was established to ensure timely filing in future periods. Name of Contact Person: Pedro Santiago, Federal Programs Director Completion Date: December 31, 2025

View Audit 391846

Finding 1179425 (2025-001)

Material Weakness 2025

Anson County

NC

Eligibility Internal Control / Segregation of Duties Questioned Costs

Anson County Finance Department 101 S. Greene Street, Suite 238 Wadesboro, NC 28170 None reported Name of Contact Person: Nia Broadway, Medicaid Manager Corrective Action: Proposed Completion Date: Corrective Actions for findings 2025-001 also apply to the State Award findings. Section IV- State Awa...

Anson County Finance Department 101 S. Greene Street, Suite 238 Wadesboro, NC 28170 None reported Name of Contact Person: Nia Broadway, Medicaid Manager Corrective Action: Proposed Completion Date: Corrective Actions for findings 2025-001 also apply to the State Award findings. Section IV- State Award Findings and Questioned Costs Section III - Federal Award Findings and Questioned Costs Corrective Action Plan 2/13/2026 Inadequate Request for Information Management will meet with staff on November 13, 2025, to discuss and train on findings from the Single County Audit All staff responsible for Single County Finding were placed on work plan related to the finding. For the next 60 days 50% of all Medicaid Staff work will have a complete Second Party and the findings will be discussed with the individual staff and training for all Staff based off the findings. For the Year Ended June 30, 2025 Section II - Financial Statement Findings Finding: 2025-001 124

View Audit 391837

Finding 1179424 (2025-001)

Material Weakness 2025

Franklin & Marshall College

PA

Student Financial Aid Subrecipient Monitoring Eligibility

The College will ensure the accuracy of reports sent to NSLDS by making changes to their staffing structure and roles surrounding student leave of absences and withdrawals. The College hired a single administrator who assists students through the process of requesting a leave of absence or a withdra...

The College will ensure the accuracy of reports sent to NSLDS by making changes to their staffing structure and roles surrounding student leave of absences and withdrawals. The College hired a single administrator who assists students through the process of requesting a leave of absence or a withdrawal and processes all leaves, making the system more efficient. The Office of Financial Aid will continue to process Return to Title IV calculations immediately when notified about a Title IV recipient’s leave of absence or withdrawal.

View Audit 391825

Finding 1179423 (2025-003)

Material Weakness 2025

Bering Sea Fishermen's Association

AK

Period of Performance Subrecipient Monitoring Allowable Costs / Cost Principles § 200.309

Name of Contact Person: Karen Gillis Corrective Action Plan: This finding remains an unusual situation for BSFA. BSFA has not previously been in a situation where BSFA funded a contractor in the absence of the federal government’s inability to enter into a contractual agreement (due to the Trump Adm...

Name of Contact Person: Karen Gillis Corrective Action Plan: This finding remains an unusual situation for BSFA. BSFA has not previously been in a situation where BSFA funded a contractor in the absence of the federal government’s inability to enter into a contractual agreement (due to the Trump Administrations strict limitations on entering into contractual agreements). The inability to demonstrate that costs were incurred lies with the contractor wherein we were unable to obtain from them their spending down the funds provided as originally agreed upon. We do not anticipate another instance such as this though we will implement stronger controls over contract payments in the future so expenditures are supported by documentation showing costs were incurred within the approved period of performance. Proposed Completion Date: February 28, 2026

View Audit 391824

Corrective Action Plans

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