Corrective Action Plans

Finding 1211153 (2025-002)

Material Weakness 2025

IL

Reporting

Finding 2025-002: Reporting – ALN 93.217 Finding: During the fiscal year ended June 30, 2025, the Agency did not timely submit three of four required quarterly Federal Financial Reports (FFRs) for the Family Planning Services program. Correction Actions Taken: Management acknowledges that three of f...

Finding 2025-002: Reporting – ALN 93.217 Finding: During the fiscal year ended June 30, 2025, the Agency did not timely submit three of four required quarterly Federal Financial Reports (FFRs) for the Family Planning Services program. Correction Actions Taken: Management acknowledges that three of four quarterly Federal Financial Reports were submitted after their respective deadlines during the fiscal year ended June 30, 2025. These delays occurred during a period of significant administrative transition, including the departure of key personnel directly responsible for federal reporting and the reassignment of duties mid cycle. Despite these challenges, the impacted reports were submitted within two and seven days of the required deadlines. At no time was there an absence of monitoring or an intent to delay compliance. Management has since implemented enhanced internal tracking of federal reporting deadlines, clarified role assignments during staff transitions, and initiated earlier internal review of quarterly reports to ensure timely submission going forward. Contact Person: Tonya Tucker, Chief Financial Officer Anticipated Completion Date: Implemented as of the fiscal year ended June 30, 2026

View Audit 400357

Finding 1211152 (2025-002)

Material Weakness 2025

Kayenta Unified School District No.27

AZ

Equipment & Real Property Management § 200.313

Finding Number: 2025‐002 Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425U Contact Person: Arlene Laughter, Business Coordinator Anticipated Completion Date: December 2026 Planned Corrective Action: The District plans to hire a GFA Specialist resp...

Finding Number: 2025‐002 Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Number: 84.425U Contact Person: Arlene Laughter, Business Coordinator Anticipated Completion Date: December 2026 Planned Corrective Action: The District plans to hire a GFA Specialist responsible for overseeing capital asset requirements. Duties will include completing the physical inventory, reconciling stewardship, and capital assets with the district’s general fixed assets list and maintaining records to support annual depreciation calculations and other required information. Reason Findings Were Not Corrected: The Business Office has experienced staffing shortages, particularly in Payroll and Grants Management, both of which have pressing deadlines. As a result, Fixed Assets was frequently deprioritized. Recognizing the importance of timely management in this area, the Business Office will establish a dedicated position focused exclusively on Fixed Assets.

View Audit 400355

Finding 1211151 (2025-001)

Material Weakness 2025

Kayenta Unified School District No.27

AZ

Reporting § 200.512

Finding Number: 2025‐001 Program Names/Assistance Listing Titles: Assistance Listing Numbers: Impact Aid 84.041 Education Stabilization Fund 84.425 Contact Person: Arlene Laughter, Business Coordinator Anticipated Completion Date: December 2026 Planned Corrective Action: The District intends to stre...

Finding Number: 2025‐001 Program Names/Assistance Listing Titles: Assistance Listing Numbers: Impact Aid 84.041 Education Stabilization Fund 84.425 Contact Person: Arlene Laughter, Business Coordinator Anticipated Completion Date: December 2026 Planned Corrective Action: The District intends to strengthen controls over all financial reporting and records retention to ensure that all documentation is properly prepared and accessible for the timely completion of financial reports. With the recent addition of an experienced Payroll Specialist and the ongoing recruitment for a GFA Specialist, the District will address all relevant areas, thereby facilitating compliance with required reporting deadlines. Reason Findings Were Not Corrected: The Business Office has experienced staffing shortages in key departments, including Payroll, Grants Management, and General Fixed Assets, each of which is responsible for meeting critical deadlines. Due to these staffing constraints, the District was unable to dedicate adequate resources to fulfill the required timelines and ensure that all documents were properly prepared and available for completion of the financial reports.

View Audit 400355

Finding 1211099 (2025-002)

Material Weakness 2025

Aberdeen School District No. 5

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Material Weakness

Finding ref number: 2025-002 Finding caption: The District did not have adequate internal controls and did not comply with time-and-effort requirements. Name, address, and telephone of District contact person: Elyssa Louderback, Executive Director of Business & Operations, 216 North G Street, Aberde...

Finding ref number: 2025-002 Finding caption: The District did not have adequate internal controls and did not comply with time-and-effort requirements. Name, address, and telephone of District contact person: Elyssa Louderback, Executive Director of Business & Operations, 216 North G Street, Aberdeen, WA. 98520. (360) 538-2007 Corrective action the auditee plans to take in response to the finding: (If the auditee does not concur with the finding, the auditee must list the reasons for non-concurrence). The district will make sure all staff are listed on the Semi-Annual Certifications. Staff with braided funding will have a PAR with monthly verifications. Anticipated date to complete the corrective action: February 1, 2026

View Audit 400341

Finding 1211096 (2025-001)

Material Weakness 2025

Aberdeen School District No. 5

WA

Procurement, Suspension & Debarment School Nutrition Programs

Finding ref number: 2025-001 Finding caption: The District did not have adequate internal controls and did not comply with federal suspension and debarment requirements. Name, address, and telephone of District contact person: Jaime Matisons, Food Service Manager, 900 Cleveland, Aberdeen, WA. 98520 ...

Finding ref number: 2025-001 Finding caption: The District did not have adequate internal controls and did not comply with federal suspension and debarment requirements. Name, address, and telephone of District contact person: Jaime Matisons, Food Service Manager, 900 Cleveland, Aberdeen, WA. 98520 (360) 538-2256 Corrective action the auditee plans to take in response to the finding: (If the auditee does not concur with the finding, the auditee must list the reasons for non-concurrence). The cooperative provides all bid documents for the district representatives to review, this included suspension and debarment documentation. After review at a meeting of the cooperative membership, the members vote on accepting the bid. The cooperative keeps all documentation on file for review of the auditors. Documentation of this was provided to the auditor. Anticipated date to complete the corrective action: April 2026

View Audit 400341

Finding 1211091 (2025-003)

Material Weakness 2025

Jewish Family Service of Dallas, Inc.

TX

Reporting Matching / Level of Effort / Earmarking Material Weakness

Finding 2025-003: Preparation of the schedule of federal expenditures (SEFA) – material weakness in internal controls over reporting. Management Response: Management acknowledges the finding and agrees that improvements are needed in the preparation and review of the Schedule of Expenditures of Fede...

Finding 2025-003: Preparation of the schedule of federal expenditures (SEFA) – material weakness in internal controls over reporting. Management Response: Management acknowledges the finding and agrees that improvements are needed in the preparation and review of the Schedule of Expenditures of Federal Awards (SEFA). The audit identified that controls over the accuracy, completeness, and reconciliation of the SEFA to the general ledger and financial statements were not consistently performed or documented. This condition developed during a period of organizational transition, including changes in financial leadership, as well as increased complexity in federal funding and reporting requirements. These factors contributed to gaps in oversight and consistency in the SEFA preparation process. To address this finding, management is implementing the following corrective actions: • Establishing a formal, documented SEFA preparation process, including standardized templates and procedures • Implementing quarterly and year-end reconciliation processes to ensure grant activity is accurately recorded and aligned with the general ledger • Strengthening review controls, including secondary review by the Controller and CFO prior to finalization Enhancing grant tracking mechanisms to ensure expenditures, revenues, and matching requirements are properly classified • Providing targeted training to staff responsible for grant accounting and SEFA preparation Responsible party: Brenda Colon, CFO Expected Completion Date: October 2026

View Audit 400338

Finding 1211090 (2025-002)

Material Weakness 2025

Jewish Family Service of Dallas, Inc.

TX

Allowable Costs / Cost Principles Material Weakness

Finding 2025-002: Allowable Costs and Activities – Material Weakness in Internal Controls over Compliance Management Response: Management acknowledges the finding and agrees that improvements are necessary in the design and execution of internal controls related to allowable costs and activities for...

Finding 2025-002: Allowable Costs and Activities – Material Weakness in Internal Controls over Compliance Management Response: Management acknowledges the finding and agrees that improvements are necessary in the design and execution of internal controls related to allowable costs and activities for federal programs. The audit identified inconsistencies in how grant expenditures were reviewed, approved, and supported, as well as gaps in ensuring costs charged to grants were fully aligned with applicable requirements. This condition arose during a period of organizational transition, including changes in financial leadership, combined with increased volume and complexity of federal funding. These factors contributed to inconsistencies in control execution, documentation, and oversight. To address this finding, management is implementing the following corrective actions: • Enhancing policies and procedures governing allowable costs to ensure alignment with federal grant requirements • Strengthening pre- and post-expenditure review processes to verify that all costs charged to grants are allowable, properly supported, and accurately recorded • Implementing formal, documented reconciliation procedures for grant expenditures on a monthly basis • Establishing secondary review controls involving both the Controller and CFO to ensure compliance and accuracy • Providing targeted training to program and finance staff on allowable cost principles and grant compliance requirements • Improving documentation standards to ensure all approvals and supporting evidence are complete and audit-ready. Responsible party: Brenda Colon, CFO Expected Completion Date: October 2026.

View Audit 400338

Finding 1211089 (2025-001)

Material Weakness 2025

Jewish Family Service of Dallas, Inc.

TX

Allowable Costs / Cost Principles Cash Management Material Weakness

Finding 2025-001: Allowable Costs and Activities – Material Weakness in Internal Controls over Compliance Management Response: Management acknowledges the finding and agrees that improvements are required in internal controls over compliance related to allowable costs and activities. This condition ...

Finding 2025-001: Allowable Costs and Activities – Material Weakness in Internal Controls over Compliance Management Response: Management acknowledges the finding and agrees that improvements are required in internal controls over compliance related to allowable costs and activities. This condition arose during a period of organizational transition and increased complexity in funding sources and compliance requirements, which impacted consistency in control execution. Under the direction of the CFO, the organization is implementing the following corrective actions for the upcoming fiscal year: • Strengthening review and approval processes over grant expenditures and payroll allocations • Implementing formal, documented monthly reconciliations for all grant-related accounts • Establishing secondary review controls between the Controller and Accounting Clerk to ensure accuracy and compliance • Providing targeted training under the direction of the CFO for staff involved in financial reporting and grant compliance • Enhancing documentation standards to ensure all control activities are properly evidenced and audit-ready The organization has also reinforced financial leadership capacity to ensure appropriate oversight, adherence to GAAP, and alignment with federal compliance requirements. Responsible party: Brenda Colon, CFO Expected Completion Date: October 2026.

View Audit 400338

Finding 1211082 (2025-001)

Material Weakness 2025

Rowan College of South Jersey

NJ

Student Financial Aid

Corrective Action Plan FINDING NO. 2025-001 PROGRAM U.S. Department of Education - Student Financial Aid Cluster (ALN 84.268) REQUIREMENT 34 CFR § 668.165(a) CRITERIA OR SPECIFIC REQUIREMENT Under 34 CFR § 668.165(a), institutions are required to notify borrowers in writing ( or electronically) of t...

Corrective Action Plan FINDING NO. 2025-001 PROGRAM U.S. Department of Education - Student Financial Aid Cluster (ALN 84.268) REQUIREMENT 34 CFR § 668.165(a) CRITERIA OR SPECIFIC REQUIREMENT Under 34 CFR § 668.165(a), institutions are required to notify borrowers in writing ( or electronically) of the anticipated date and amount of each Direct Loan disbursement, as well as the borrower's right to cancel all or a portion of the loan. This notification must be sent within a required time frame of crediting the student's account. CONDITION The College did not provide required notifications to students (or parents, where applicable) regarding the disbursement of Federal Direct Loans for the Spring semester during the award year. RECOMMENDATION The College should implement and document procedures to ensure that all required Direct Loan disbursement notifications are generated and delivered to students (or parents, where applicable) in a timely manner for all payment periods during the award year. VIEW OF RESPONSIBLE OFFICIALS The College concurs with the finding and recommends and presents the following correctiveaction plan to be implemented. PLANNED CORRECTIVE ACTION The College will implement a standardized and automated process within its financial aid system to ensure that disbursement notifications are generated and delivered to all Direct Loan recipients (or parents, where applicable) for each payment period within the required timeframe. Notifications will include the anticipated disbursement date, amount, and the borrower's right to cancel all or a portion of the loan. Additionally, the College will establish documented procedures requiring staff to: • Verify that notifications are generated for each disbursement period • Maintain system-generated records evidencing the date and method of notification • Perform periodic reconciliations between disbursement records and notification logs to ensure completeness The procedures will be incorporated into the Financial Aid Policies and Procedures Manual, and staff will receive training on the updated requirements. RESPONSIBLE PARTY Associate Vice President, Student Aid & Records ANTICIPATED COMPLETION DATE August 31, 2025, with full implementation beginning in the Fall 2025 term Signed Michael Chando, Associate Vice President

View Audit 400334

Finding 1211081 (2025-003)

Material Weakness 2025

Ana G. Mendez University, Inc.

FL

Student Financial Aid Reporting

Due to challenges related to the implementation and reporting functionality of the Anthology Student system, AGMU temporarily experienced difficulties in identifying enrollment status changes and reporting the changes to NSLDS. Errors and delays related to enrollment reporting were primarily due to ...

Due to challenges related to the implementation and reporting functionality of the Anthology Student system, AGMU temporarily experienced difficulties in identifying enrollment status changes and reporting the changes to NSLDS. Errors and delays related to enrollment reporting were primarily due to AGMU’s delay in identifying withdrawn students (discussed in Finding 2025-2) and identifying the withdrawal date used in the R2T4 calculation so that the date could be reported to NSLDS. AGMU agrees with the auditor’s recommendation that implementing additional processes and controls around enrollment reporting will improve compliance. To resolve this issue and prevent recurrence, AGMU is completing the corrective actions described below. Corrective Action 1: Confirming and reporting withdrawal dates for award years 2023-24 and 2024-25 As part of the withdrawn students file review described in the corrective actions for Finding 2025-2, AGMU is confirming the withdrawal date for students who did not complete the payment period. Once the withdrawal dates have been confirmed (and/or previous withdrawal dates are confirmed), enrollment statuses for impacted students will be updated in NSLDS as appropriate. Corrective Action 2: Monitoring for enrollment status changes To identify enrollment status changes timely, AGMU developed a report (“Customized Enrollment Status Change” report) that identifies students with enrollment status changes, the effective date of enrollment status changes, and potential Title IV adjustments related to enrollment status changes (e.g., Pell Grant recalculations). AGMU generates this report weekly to ensure that any student with an enrollment status change is reviewed, and timely Title IV award revisions are completed, if applicable. Corrective Action 3: Validation of the Enrollment Reporting Roster To validate the accuracy of the Enrollment Reporting Roster, AGMU will be developing a report to identify students with enrollment status changes and the effective date of enrollment status changes. AGMU is determining if it could use the existing report (“Customized Enrollment Status Change” report) for this process. Once AGMU has finalized its process and report, AGMU plans to generate this report monthly to confirm accurate information regarding student enrollment status is being extracted from the Anthology Student system and correctly transmitted to NSLDS via the Enrollment Reporting Roster. Corrective Action 4: Timely identification of ISIR comment codes Although AGMU had policies and procedures related to determining student eligibility, the procedures required revisions due to the Anthology Student implementation. To identify students for whom ISIR comment codes appear after Title IV aid is awarded and/or disbursed (i.e., on a subsequent ISIR), AGMU developed a report (“Customized Ineligible Funds” report) that identifies potentially impacted students, Title IV funds awarded and disbursed, and ISIR comment codes. AGMU generates this report weekly to ensure any student with an ISIR comment code is reviewed and any funds that must be returned are identified timely. Corrective Action 5: Review and revision of policies and procedures related to enrollment reporting. AGMU is in the process of revising its existing policies and procedures related to enrollment reporting to ensure they correctly describe processes in the Anthology system. Corrective Action 6: Ongoing monitoring by and support from system office personnel SUAGM central office financial aid personnel will perform and assist with quality assurance activities related to AGMU’s enrollment reporting such as: 1. Creating reports related to official and unofficial withdrawals to verify that enrollment status changes are identified on a timely basis and accurately reflected in student records in NSLDS. 2. In coordination with the Registrar, creating an enrollment reporting manual. 3. Developing NSLDS enrollment reporting training and requiring that all staff with enrollment reporting responsibilities attend the training. Corrective Action 7: Enrollment reporting file review AGMU is in the process of planning a comprehensive file review of enrollment reporting for the 2023-24 and 2024-25 award years. At this time, AGMU is prioritizing the withdrawn students file review so that unearned funds can be returned to the U.S. Department of Education as soon as possible. Once the withdrawn students file review is completed, AGMU will begin work on the enrollment reporting file review.

View Audit 400332

Finding 1211078 (2025-002)

Material Weakness 2025

Ana G. Mendez University, Inc.

FL

Student Financial Aid

Due to challenges related to the implementation and reporting functionality of the Anthology Student system, AGMU temporarily experienced difficulties in identifying students who officially or unofficially withdrew from the payment period. Although the compliance issues identified in this finding ar...

Due to challenges related to the implementation and reporting functionality of the Anthology Student system, AGMU temporarily experienced difficulties in identifying students who officially or unofficially withdrew from the payment period. Although the compliance issues identified in this finding are primarily attributable to system implementation challenges, AGMU understands the importance of timely returns to the U.S. Department of Education related to withdrawn students and is engaged in a comprehensive effort to address deficiencies, prevent recurrence, and return any funds due from AGMU as soon as feasible. To resolve this issue and prevent recurrence, AGMU is completing the corrective actions described below. Corrective Action 1: Student eligibility and withdrawn students file review AGMU completed a file review of the 2023-24 and 2024-25 award years to identify students who (1) failed to begin attendance in a course or courses, and/or (2) had ISIR comment codes requiring resolution. As a result of this file review, AGMU has recalculated Title IV awards for impacted students. AGMU has also completed a file review of the 2023-24 and 2024-25 award years to confirm it has identified all students who officially and unofficially withdrew from the payment period. AGMU is now in the process of compiling system data to perform or re-perform R2T4 calculations for these students, as appropriate. Once AGMU has completed the R2T4 file review and confirmed if additional returns are required for the impacted students, AGMU will report the recalculated award amounts to COD and return funds via G5. Corrective Action 2: Development and enhancement of reports to facilitate the identification of withdrawn students and support the R2T4 calculation. AGMU developed new reports and enhanced existing reports that will aid the institution in timely identifying withdrawn students and performing accurate R2T4 calculations, including but not limited to the following reports that AGMU reviews weekly: • A report (“Customized Enrollment Status Change” report) that identifies students with enrollment status changes that may indicate the student ceased attending the payment period and thus a R2T4 is required. • Reports (“AGMU R2T4 Calculation Detail” and “AGMU R2T4 Review by Term” report) that extract data used in the R2T4 calculation from the student information system, such as term dates, module dates, and Title IV disbursements. • A report (“R2T4 Return of Funds” report) that track R2T4s performed in the system for which funds have not yet been returned via COD and potential post-withdrawal disbursements to student and parent borrowers. • A report (“Canvas Last Academic Activity” report) from the learning management system that confirms the student’s last date of academic engagement in an online course to assist in determining the student’s withdrawal date. AGMU uses the above reports jointly with reviewing live student data in the Anthology Student system when performing a R2T4 calculation, returning funds or disbursing or offering a post-withdrawal disbursement to a student or parent borrower. Corrective Action 3: Review and revision of policies and procedures related to student eligibility. AGMU is in the process of revising its existing policies and procedures related to student eligibility determinations to ensure they correctly describe processes in the Anthology system. AGMU is also in the process of revising its existing policies and procedures related to identifying withdrawn students, performing the R2T4 calculation, and returning funds via COD to ensure they correctly describe processes in the Anthology system. Corrective Action 4: Ongoing monitoring by and support from system office personnel SUAGM central office financial aid personnel perform and assist with quality assurance activities related to AGMU’s determination of student eligibility such as: 1. Reporting parameters are reviewed and refined collaboratively by Financial Aid, Registrar, and Information Technology (IT) staff to ensure that custom reports capture accurate, complete, and relevant data. This process includes validating data fields, logic, and calculation criteria used to support enrollment status changes and student eligibility analysis (i.e., the monitoring of ISIR comment codes). 2. Customized reports developed for enrollment status changes and student eligibility analysis are reviewed biweekly to identify changes in enrollment intensity, eligibility indicators, and potential ineligible disbursements. These reports support the timely review of aid adjustments and identification of cases requiring resolutions or returns. 3. Student record samples are selected and discussed at regularly scheduled validation meetings. These meetings include representatives from the Registrar, Financial Aid, Bursar, IT, and Compliance to confirm data accuracy, validate reporting results, and identify any necessary process or reporting adjustments. SUAGM central office financial aid personnel also perform and assist weekly with quality assurance activities related to AGMU’s identification of withdrawn students, performing the R2T4 calculation, and returning funds via COD, such as: 1. Reviewing reports generated by AGMU related to official and unofficial withdrawals, including validation of withdrawal dates, last date of academic activity, and enrollment status changes identified through registrar and financial aid data. 2. Reviewing R2T4 calculations prepared by AGMU to confirm accurate payment period dates and scheduled days for programs offered in modules, earned and unearned aid determinations, and amounts scheduled for return. 3. Monitoring the timely submission of returns through COD, including the review of refund activity reports and confirmation that returns are properly recorded and reconciled. Corrective Action 5: Ongoing training of AGMU personnel on key R2T4 concepts AGMU has mandated additional R2T4 training for personnel who interact with the R2T4 process in the financial aid office, registrar’s office, and bursar’s office. In addition to requiring that personnel attend training organized by SUAGM, AGMU employees have participated in webinars offered by Federal Student Aid, NASFAA, and third-party servicers, accounting firms, and law firms with expertise in R2T4 concepts.

View Audit 400332

Finding 1211075 (2025-003)

Material Weakness 2025

City of West Melbourne, Florida

FL

Procurement, Suspension & Debarment § 200.303

2025-003 Suspension and Debarment Recommendation: The City should put controls in place to verify SAM checks before authorizing a contract or a purchase order with a vendor for a covered transaction. Corrective Action: Management recognizes the importance of compliance with federal suspension and de...

2025-003 Suspension and Debarment Recommendation: The City should put controls in place to verify SAM checks before authorizing a contract or a purchase order with a vendor for a covered transaction. Corrective Action: Management recognizes the importance of compliance with federal suspension and debarment requirements. Management has implemented procedures to ensure compliance with suspension and debarment requirements for federally funded transactions. As part of the procurement process, vendors responding to solicitations for grant-funded projects will be required to provide evidence of active SAM registration and certify that they are not suspended or debarred. In addition, prior to execution of contracts or issuance of purchase orders for covered transactions, management will perform and document an independent SAM.gov verification as part of standard pre-award procedures to confirm vendor eligibility. Responsible Parties: B. Keith Smith, Finance Director Anticipated Correction Date: September 30, 2026

View Audit 400324

Finding 1211073 (2025-004)

Material Weakness 2025

City of West Melbourne, Florida

FL

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303

2025-004 Reporting Recommendation: The City should review the underlying data along with the report to ensure that report agrees with the support and the underlying data is correct. Corrective Action: Management recognizes the importance of accurate and complete reporting to the U.S. Treasury. While...

2025-004 Reporting Recommendation: The City should review the underlying data along with the report to ensure that report agrees with the support and the underlying data is correct. Corrective Action: Management recognizes the importance of accurate and complete reporting to the U.S. Treasury. While procedures were in place, the review of underlying data was not sufficient to ensure accuracy and completeness prior to submission. The issue was limited to a single report and was corrected in the subsequent U.S. Treasury reporting cycle in accordance with program requirements. To prevent recurrence, management has enhanced its review procedures over grant reporting to include reconciliation of underlying data and validation checks for inconsistencies prior to report submission. Additionally, a secondary level of review will be performed to ensure reports are complete and accurate before submission to the U.S. Treasury. Responsible Parties: B. Keith Smith, Finance Director Anticipated Correction Date: September 30, 2026

View Audit 400324

Finding 1211042 (2025-003)

Material Weakness 2025

Hui No Ke Ola Pono, Inc.

HI

Cash Management § 200.305

2025-003-Significant Advance Drawdown on Federal Fund for Six Months, United States Department of Health and Human Services, Native Hawaiian Health Care Systems 93.932, On January 20, 2025, we received the first Executive Order from President Trump, placing a hold on federal funding. We were advised...

2025-003-Significant Advance Drawdown on Federal Fund for Six Months, United States Department of Health and Human Services, Native Hawaiian Health Care Systems 93.932, On January 20, 2025, we received the first Executive Order from President Trump, placing a hold on federal funding. We were advised that the PMS (Payment Management System) would be down and drawdowns would not be available until further notice. From January 20th, 2025, we tried to complete a drawdown, and the PMS system was not available. On January 28, 2025, finally accessing the PMS system, we estimated our January expenses and completed a drawdown for $200,000. At the time, we needed the HRSA funding to cover January costs already spent. Due to the uncertainty of the HRSA funding availability, and when the PMS system would be available, we estimated another drawdown the following day, to cover at least 2 more months of HRSA expenses. The other Native Hawaiian Health Systems could not access the PMS system, which prompted us to complete another drawdown to cover HRSA expenses for the remainder of the fiscal year. We were able to expend all HRSA funding that was drawn down by fiscal year ending July 31, 2025.

View Audit 400320

Finding 1211041 (2025-002)

Material Weakness 2025

Hui No Ke Ola Pono, Inc.

HI

Reporting

2025-002-Incomplete and Inaccurate Schedule of Expenditures of Federal Awards (SEFA), Health Resources and Services Administration Native Hawaiian Health Care 93.932, During the fiscal year 2024, we experienced a high volume of funding sources due to the Lahaina wildfires. It was extremely difficult...

2025-002-Incomplete and Inaccurate Schedule of Expenditures of Federal Awards (SEFA), Health Resources and Services Administration Native Hawaiian Health Care 93.932, During the fiscal year 2024, we experienced a high volume of funding sources due to the Lahaina wildfires. It was extremely difficult to communicate to the grantor if the funding was a result of a federal award. As of January 2025, the Executive Director inquires with the funding source if the award is a result of federal funds. In many cases, the grantor is unable to provide these details.

View Audit 400320

Finding 1211036 (2025-001)

Material Weakness 2025

Hui No Ke Ola Pono, Inc.

HI

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting

2025-001-Internal Control over Financial Reporting, Health Resources and Services Administration Native Hawaiian Health Care 93.932, Significant adjusting journal entries, Due to lack of fiscal staff and high turnover, the organization fell behind on audits, and therefore, many adjusting entries wer...

2025-001-Internal Control over Financial Reporting, Health Resources and Services Administration Native Hawaiian Health Care 93.932, Significant adjusting journal entries, Due to lack of fiscal staff and high turnover, the organization fell behind on audits, and therefore, many adjusting entries were required to reconcile accounts. The audits have been completed, and all accounts have been reconciled as of July 31, 2025. In addition to the high turnover, during fiscal year ending 2024, there was an increase in donor funding to assist with the Lahaina wildfires recovery efforts. Again, our staff were challenged to meet the demands of the requirements of the funding and to continue to monitor the previous and current fiscal years financial state.

View Audit 400320

Finding 1211029 (2025-001)

Material Weakness 2025

Kama'aina Care, Inc.

HI

Subrecipient Monitoring Reporting Significant Deficiency § 200.329

Management concurs with the finding and will ensure that records are maintained to indicate timely submission of reports.

View Audit 400308

Finding 1211028 (2025-002)

Material Weakness 2025

Housing Authority of New Orleans

LA

HUD Housing Programs Internal Control / Segregation of Duties

The Housing Authority of New Orleans (HANO) acknowledges the finding related to the inability to provide documentation supporting the waiting list selection for certain admissions tested during the audit. The Authority's review indicates that the issue was primarily related to the accessibility of d...

The Housing Authority of New Orleans (HANO) acknowledges the finding related to the inability to provide documentation supporting the waiting list selection for certain admissions tested during the audit. The Authority's review indicates that the issue was primarily related to the accessibility of documentation during the transition from physical files to a digital file management system rather than a failure to follow established waiting list selection procedures. HANO maintains policies and procedures requiring that applicants be selected from the waiting list in accordance with the Authority's Administrative Plan and HUD regulations. HANO will review the admissions identified in the audit sample and locate or reconstruct supporting documentation where available. In addition, the Authority will conduct an internal review of additional admissions files to confirm that waiting list selection procedures were followed and that documentation is properly maintained. To prevent recurrence, HANO will strengthen internal controls by implementing standardized documentation requirements for voucher issuance, reinforcing staff training regarding waiting list selection procedures, and conducting periodic quality control reviews of admissions files to ensure documentation supporting waiting list selection is complete and accessible. HANO will also ensure that documentation associated with waiting list selection is properly retained within the Authority's digital file management system following the ongoing file digitization process. Responsible Party: Ashley Dennis, Director Implementation Timeline: Start Date: March 30, 2026 Completion Date: May 18, 2026

View Audit 400305

Finding 1211025 (2025-001)

Material Weakness 2025

Housing Authority of New Orleans

LA

HUD Housing Programs Eligibility

The Housing Authority of New Orleans (HANO) acknowledges the deficiencies identified in the audit related to tenant eligibility documentation, Housing Assistance Payment (HAP) calculations, and file accessibility during the transition to digital records. HANO will correct the deficiencies noted in t...

The Housing Authority of New Orleans (HANO) acknowledges the deficiencies identified in the audit related to tenant eligibility documentation, Housing Assistance Payment (HAP) calculations, and file accessibility during the transition to digital records. HANO will correct the deficiencies noted in the sampled files, including completing overdue recertifications, obtaining required HUD forms and identification documentation, securing proper third-party income verification, and recalculating HAP amounts where necessary. The Authority will also conduct an expanded internal review of additional tenant files to determine whether similar issues exist and will correct any deficiencies identified. To prevent recurrence, HANO has initiated formal staff training to reinforce compliance with HUD eligibility requirements, documentation standards, and proper HAP calculation procedures. Training began on March 19, 2026, and is being conducted by Circular Consulting LLC, a thirdparty firm with expertise in Housing Choice Voucher program compliance and operations. This training will continue through September 2026 to ensure staff receive comprehensive instruction and reinforcement of HUD program requirements. In addition, HANO will strengthen internal controls by implementing additional quality control (QC) reviews of tenant files and recertifications, including supervisory review of eligibility documentation and HAP calculations to ensure accuracy and completeness. These enhanced QC monitoring procedures will begin on April 20, 2026, and will be conducted on an ongoing basis to ensure errors are identified and corrected promptly. The Authority will also reconcile physical and digital tenant records to ensure that all files are properly digitized, complete, and accessible following the transition to electronic records. Responsible Party: Sonja Young, Director Implementation Timeline: Start Date: March 30, 2026 Completion Date: May 18, 2026

View Audit 400305

Finding 1211022 (2025-002)

Material Weakness 2025

School Nutrition Prog of the Archdiocese of La Education & Welfare Cor

CA

Internal Control / Segregation of Duties Eligibility § 200.302 § 200.333

Recommendation: We recommend the SNP reviews its internal controls and policies to ensure all students receiving benefits have an application, or other supporting documentation, on file to support their eligibility. Action taken in response to finding: Management acknowledges the finding and will re...

Recommendation: We recommend the SNP reviews its internal controls and policies to ensure all students receiving benefits have an application, or other supporting documentation, on file to support their eligibility. Action taken in response to finding: Management acknowledges the finding and will revise and formalize internal controls as follows: • Eligibility Documentation Procedures: Develop a standardized checklist to confirm required documentation is obtained, reviewed and retained prior to approval. • Centralize Review and Approval Process: A designated reviewer will be responsible for verifying completeness and accuracy of all eligibility determinations. Approval will be formally documented. • Record Retention Controls: Management will establish controls to ensure that all eligibility documentation is: Properly maintained, readily accessible for audit or review and retained in accordance with federal, state and organization-wide policy. • Personnel Training: Training will be conducted annually and upon onboarding new personnel. Name of the contact person responsible for corrective action: Sean Jernigan, Chief of Operational Vitality, Department of Catholic Schools, Archdiocese of Los Angeles Planned completion date for corrective action plan: • Procedure and checklist implementation: Within 30 days of financial statement issuance • Staff training: Within 60 days of financial statement issuance • Full implementation and evidence of operation: 90 days of financial statement issuance

View Audit 400300

Finding 1211018 (2025-003)

Material Weakness 2025

YWCA West Central Michigan

MI

Reporting Significant Deficiency Internal Control / Segregation of Duties § 200.328 § 200.329

Our program leadership are playing a more active role in reporting and compliance and are actively involving directors of programs in the process of reporting.

View Audit 400298

Finding 1211014 (2025-002)

Material Weakness 2025

YWCA West Central Michigan

MI

Allowable Costs / Cost Principles § 200.405

Percentages used for allocations will be reviewed annually across all grants/programs and updated during the budget process. These allocations will be reviewed by the CFO. Implemented for the most part in FY2025 but discovered that we had not made corrections to the entire process of allocations, ha...

Percentages used for allocations will be reviewed annually across all grants/programs and updated during the budget process. These allocations will be reviewed by the CFO. Implemented for the most part in FY2025 but discovered that we had not made corrections to the entire process of allocations, have tightened this up in FY2026.

View Audit 400298

Finding 1211010 (2025-001)

Material Weakness 2025

YWCA West Central Michigan

MI

Period of Performance Allowable Costs / Cost Principles Cash Management § 200.1

The YWCA has implemented (January 2025) the following changes in its accounting procedures. 1. The Staff Accountant will review the period each expenditure is related to and record the invoice to the appropriate period when entering it into accounts payable. The month and year will be noted on the i...

The YWCA has implemented (January 2025) the following changes in its accounting procedures. 1. The Staff Accountant will review the period each expenditure is related to and record the invoice to the appropriate period when entering it into accounts payable. The month and year will be noted on the invoice. 2. The CFO will review the month, and year noted by the Staff Accountant prior to entry into accounts payable.

View Audit 400298

Finding 1211006 (2025-005)

Material Weakness 2025

CITY OF CAMERON

WV

Reporting Internal Control / Segregation of Duties

2025-05 Uniform Guidance Audit Submission Nichole Bryan March 24, 2027 View of Responsible Officials and Corrective Action Plan Taken: The City will work to develop and adopt controls to ensure that the year-end financial statements are prepared in a timely manner so as to facilitate a timely audit ...

2025-05 Uniform Guidance Audit Submission Nichole Bryan March 24, 2027 View of Responsible Officials and Corrective Action Plan Taken: The City will work to develop and adopt controls to ensure that the year-end financial statements are prepared in a timely manner so as to facilitate a timely audit submission as set forth in the Uniform Guidance.

View Audit 400297

Finding 1210949 (2025-001)

Material Weakness 2025

Berks Counseling Center

PA

Reporting § 200.512

Berks Counseling Center submits the following corrective action plan for the year ended June 30, 2025. Name and address of independent public accounting firm: Herbein + Company, 2763 Century Boulevard, Reading, PA 19610 Audit period: Year ended June 30, 2025 Contact: Greg Little, Chief Financial Off...

Berks Counseling Center submits the following corrective action plan for the year ended June 30, 2025. Name and address of independent public accounting firm: Herbein + Company, 2763 Century Boulevard, Reading, PA 19610 Audit period: Year ended June 30, 2025 Contact: Greg Little, Chief Financial Officer The finding from the June 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 - Federal Award Findings and Questioned Costs 2025-001 REPORTING - NONCOMPLIANCE Federal Program All federal programs Criteria Per 2 CFR 200.512(a), auditees must submit the reporting package and Data Collection Form within the earlier of 30 days after receipt of the auditor’s report or nine months after the end of the audit period. Condition The Organization did not submit the Single Audit reporting package and Data Collection Form to the Federal Audit Clearinghouse within the required timeframe of nine months after the end of the audit period. The 2025 reporting package was not submitted by the March 30, 2026 due date. Cause Delay in year-end close of the financial information and delays in providing the information to complete the audit. Effect The delay in the submission of the Data Collection Form and audit to the Federal Audit Clearinghouse will result in the Organization not being considered a low-risk auditee as defined by the Uniform Guidance for the following two years. Questioned Costs None Context The lack of financial staff resources to timely close the accounting records resulted in delays. The Organization has hired an additional accounting staff and will review its internal procedures for timely closing. Repeat Finding No Recommendation We recommend that Organization develop a formal year-end closing schedule that indicates personnel responsibilities and corresponding time requirements, to allow for timely completion of year-end work in preparation for the annual audit and to ensure reporting deadlines are met. Management Response Berks Counseling Center has reviewed the recommendation noted above and is working to create additional year-end closing procedures, which include additional staff time by a recently added staff member. These procedures will assist in timely year-end close which will allow for completion of the audit and submission of the Single Audit reporting package and Data Collection Form to the Federal Audit Clearinghouse within the required timeframe.

View Audit 400287

Corrective Action Plans

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