Corrective Action Plans

Finding 1223596 (2026-001)

Material Weakness 2026

Oldtimers Housing Development Corporation of Chino 122-Eh-122-Wah-L8

CA

HUD Housing Programs

Management has agreed to review program requirements for fidelity bond coverage and obtain appropriate coverage

View Audit 407044

Finding 1223552 (2026-001)

Material Weakness 2026

Magnolia Heights Housing Corporation

MO

HUD Housing Programs Questioned Costs Special Tests & Provisions

Supportive Housing for Persons with Disabilities CFDA No. 14.181 U.S. Department of Housing and Urban Development (“HUD”) Criteria or Specific Requirement – Special Tests and Provisions: (24 CFR section 891.400(e)) Condition – The Organization is required to establish a separate project fund interes...

Supportive Housing for Persons with Disabilities CFDA No. 14.181 U.S. Department of Housing and Urban Development (“HUD”) Criteria or Specific Requirement – Special Tests and Provisions: (24 CFR section 891.400(e)) Condition – The Organization is required to establish a separate project fund interest bearing account in a federally insured depository. During the fiscal year the project fund was not in an interest-bearing account. Questioned Costs - None Context – During the fiscal year the project fund was not included in a interest bearing account. Effect – The Organization did not properly comply with the special test and provisions requirements. Cause – The Organization’s internal controls did not properly identify the project fund was not maintained in an interest-bearing account. Identification as a repeat finding – Not a repeat finding. Recommendation – The Organization should move the project fund into an interest-bearing account. Views of Responsible Officials and Planned Corrective Actions – During the 2027 fiscal year management will move the project fund to an interest-bearing account and implement procedures to periodically review the project fund and other HUD accounts for compliance with HUD requirements. This corrective action plan will be monitored by Nathan Mordica, Controller and Michael Jones, Director of Accounting, and is anticipated to be completed by the end of fiscal year 2027, or March 31, 2027.

View Audit 406934

Finding 1223551 (2026-001)

Material Weakness 2026

Poplar Place Housing Corporation

MO

HUD Housing Programs Questioned Costs Special Tests & Provisions

Supportive Housing for Persons with Disabilities CFDA No. 14.181 U.S. Department of Housing and Urban Development (“HUD”) Criteria or Specific Requirement – Special Tests and Provisions: (24 CFR section 891.400(e)) Condition – The Organization is required to establish a separate project fund interes...

Supportive Housing for Persons with Disabilities CFDA No. 14.181 U.S. Department of Housing and Urban Development (“HUD”) Criteria or Specific Requirement – Special Tests and Provisions: (24 CFR section 891.400(e)) Condition – The Organization is required to establish a separate project fund interest bearing account in a federally insured depository. During the fiscal year the project fund was not in an interest-bearing account. Questioned Costs - None Context – During the fiscal year the project fund was not included in a interest bearing account. Effect – The Organization did not properly comply with the special test and provisions requirements. Cause – The Organization’s internal controls did not properly identify the project fund was not maintained in an interest-bearing account. Identification as a repeat finding – Not a repeat finding. Recommendation – The Organization should move the project fund into an interest-bearing account. Views of Responsible Officials and Planned Corrective Actions – During the 2027 fiscal year management will move the project fund to an interest-bearing account and implement procedures to periodically review the project fund and other HUD accounts for compliance with HUD requirements. This corrective action plan will be monitored by Nathan Mordica, Controller and Michael Jones, Director of Accounting, and is anticipated to be completed by the end of fiscal year 2027, or March 31, 2027.

View Audit 406933

Finding 1223550 (2026-001)

Material Weakness 2026

Cedar Hill Housing Corporation

MO

HUD Housing Programs Questioned Costs Special Tests & Provisions

Supportive Housing for Persons with Disabilities CFDA No. 14.181 U.S. Department of Housing and Urban Development (“HUD”) Criteria or Specific Requirement – Special Tests and Provisions: (24 CFR section 891.400(e)) Condition – The Organization is required to establish a separate project fund interes...

Supportive Housing for Persons with Disabilities CFDA No. 14.181 U.S. Department of Housing and Urban Development (“HUD”) Criteria or Specific Requirement – Special Tests and Provisions: (24 CFR section 891.400(e)) Condition – The Organization is required to establish a separate project fund interest bearing account in a federally insured depository. During the fiscal year the project fund was not in an interest-bearing account. Questioned Costs - None Context – During the fiscal year the project fund was not included in a interest bearing account. Effect – The Organization did not properly comply with the special test and provisions requirements. Cause – The Organization’s internal controls did not properly identify the project fund was not maintained in an interest-bearing account. Identification as a repeat finding – Not a repeat finding. Recommendation – The Organization should move the project fund into an interest-bearing account. Views of Responsible Officials and Planned Corrective Actions – During the 2027 fiscal year management will move the project fund to an interest-bearing account and implement procedures to periodically review the project fund and other HUD accounts for compliance with HUD requirements. This corrective action plan will be monitored by Nathan Mordica, Controller and Michael Jones, Director of Accounting, and is anticipated to be completed by the end of fiscal year 2027, or March 31, 2027.

View Audit 406932

Finding 1223518 (2026-001)

Material Weakness 2026

Main Street Apartments, Inc.

CA

Management is in agreement with the finding, and will make required deposits to the replacement reserve. Management will be more diligent about ensuring the accuracy of replacement reserve deposits in the future.

View Audit 406887

Finding 1223492 (2026-001)

Material Weakness 2026

Evangel University of the Assemblies of God

MO

Evangel University agrees with the R2T4 finding and has corrected the error, funds were adjusted and applied to the student's account the day of the finding. Going forward, reviews with additional Financial Aid staff will be added to ensure the calculation of aid earned is accurate by the Financial ...

Evangel University agrees with the R2T4 finding and has corrected the error, funds were adjusted and applied to the student's account the day of the finding. Going forward, reviews with additional Financial Aid staff will be added to ensure the calculation of aid earned is accurate by the Financial Aid Department under the direction of the Financial Aid Director.

View Audit 406855

Finding 1223000 (2026-001)

Material Weakness 2026

Lincoln School Senior Apartments

WA

HUD Housing Programs Internal Control / Segregation of Duties § 200.303

S3800-045 ACTIONS TAKEN OR TO BE TAKEN: Management will endeavor to check files at the site level to ensure that the approval of each certification is retained on file. Management will work with the site managers and the compliance reviewing company to ensure accuracy of certifications, verification...

S3800-045 ACTIONS TAKEN OR TO BE TAKEN: Management will endeavor to check files at the site level to ensure that the approval of each certification is retained on file. Management will work with the site managers and the compliance reviewing company to ensure accuracy of certifications, verifications and rent calculations. The deficiencies found in the files audited will be corrected by Compliance and the site manager and reviewed by the Affordable Housing Director for completion and accuracy.

View Audit 406528

Finding 1222971 (2026-001)

Material Weakness 2026

Nba Hsg of St Louis/columbia/boone Dba Gateway/woodhaven Hsg

MO

HUD Housing Programs

MANAGEMENT AGREES WITH THE FINDING. THE FUNDS WERE DEPOSITED BACK INTO THE RESTRICTED ACCOUNT.

View Audit 406485

Finding 1222655 (2026-001)

Material Weakness 2026

Hickory Estates 084-Ee062-Wahnp

MO

HUD Housing Programs Cash Management

Corrective Action Plan for Current Year Findings 2026-001 Deposit of Surplus Cash into a Residual Receipts Account Corrective Action Plan No later than 90 days past the end of the fiscal year, we will identify surplus cash in the project funds account and deposit into the residual receipts account. ...

Corrective Action Plan for Current Year Findings 2026-001 Deposit of Surplus Cash into a Residual Receipts Account Corrective Action Plan No later than 90 days past the end of the fiscal year, we will identify surplus cash in the project funds account and deposit into the residual receipts account. Person(s) Responsible: Aaron Franklin Timing for Implementation: Immediate

View Audit 406221

Finding 1221712 (2026-002)

Material Weakness 2026

Belmont Elderly Housing, Inc.

NH

HUD Housing Programs Significant Deficiency

Finding 2026-002 CAPBM acknowledges the finding regarding inaccuracies identified in several tenant annual recertifications that required corrected HUD-50059-A forms to accurately reflect the Total Tenant Payment (TTP) and HUD subsidy amounts. The errors were the result of calculation and data entry...

Finding 2026-002 CAPBM acknowledges the finding regarding inaccuracies identified in several tenant annual recertifications that required corrected HUD-50059-A forms to accurately reflect the Total Tenant Payment (TTP) and HUD subsidy amounts. The errors were the result of calculation and data entry mistakes during the annual recertification process with past management. Current management is currently reviewing the affected tenant files and will complete any necessary corrections to ensure tenant rent and subsidy calculations are accurate and compliant with HUD requirements. To prevent similar errors in the future, CAPBM has implemented an additional review procedure for all annual recertifications. Once the Compliance Manager completes the annual recertification and prepares the HUD-50059, the Director of Affordable Housing will conduct a secondary review of the certification, including income calculations, asset determinations, applicable deductions, Total Tenant Payment (TTP), and subsidy calculations, prior to final approval and submission. Additionally, staff will continue to receive training on HUD occupancy requirements and annual recertification procedures to ensure compliance with HUD regulations. Management believes these corrective actions will strengthen internal controls and reduce the likelihood of future calculation errors. CAPBM is committed to maintaining accurate tenant certifications and ensuring ongoing compliance with HUD requirements. Completion Date: 12/1/2026 Contact: Jackie Oliveira-Director of Affordable Housing

View Audit 405980

Finding 1221710 (2026-004)

Material Weakness 2026

Belmont Elderly Housing, Inc.

NH

HUD Housing Programs Significant Deficiency

Finding 2026-004 Plan: Please see below the new process regarding hiring additional staff and turnover at Community Action Partnership Belknap-Merrimack Counties Inc. Due to lack of management, it is understood the importance of having staff training on a regular basis to ensure management and compl...

Finding 2026-004 Plan: Please see below the new process regarding hiring additional staff and turnover at Community Action Partnership Belknap-Merrimack Counties Inc. Due to lack of management, it is understood the importance of having staff training on a regular basis to ensure management and compliance duties can be performed adequately. Community Action Program Belknap-Merrimack Counties Inc. plans to improve the standards of employee training and will be hosting quarterly trainings on employee responsibilities, performance, and areas for improvement. This includes HUD trainings and keeping up to date on any new HUD policies and procedures. We understand the importance of a well-trained staff. We are committed to our performance and adhering to HUD standards while implementing policies to follow for continuous improvement. Please see below the new process regarding filling vacancies and completing management duties in a timely manner: 1. Immediate Focus on Vacancies: We are prioritizing the filling of vacant units by having two staff members complete move ins at the same time. 2. Streamlined Recertification Process: We have updated our process to ensure all tenants are recertified in a timely manner. There has been a new system in place to monitor deadlines and improve efficiency. 3. Staffing and Training: We are actively recruiting and training additional staff to ensure these tasks are handled promptly, preventing future delays. These steps will address the backlog of management duties and ensure that all tasks, such as filling vacancies, submitting budgets, and completing tenant recertifications, are handled in a timely and efficient manner. Completion Date: 11/1/2026 Contact: Jackie Oliveira-Director of Affordable Housing

View Audit 405980

Finding 1221708 (2026-003)

Material Weakness 2026

Belmont Elderly Housing, Inc.

NH

HUD Housing Programs

Finding 2026-003 Action Plan: Management has submitted all corrections to HUD, but the MOR report has not been closed out or finalized as of yearend. See 2026-003. Completion Date: 9/1/2026 Contact: Jackie Oliveira-Director of Affordable Housing

View Audit 405980

Finding 1221706 (2026-001)

Material Weakness 2026

Belmont Elderly Housing, Inc.

NH

Subrecipient Monitoring Significant Deficiency

Finding 2026-001 Plan: Please see below the new process ensuring replacement reserve requests are being made in a timely manner: 1) Quarterly Assessment: Quarterly review are now in place to assess reserve balances and ensure funds are used for necessary repairs. Monthly cash flow reports will align...

Finding 2026-001 Plan: Please see below the new process ensuring replacement reserve requests are being made in a timely manner: 1) Quarterly Assessment: Quarterly review are now in place to assess reserve balances and ensure funds are used for necessary repairs. Monthly cash flow reports will align reserve balances with property needs. 2) Formal Utilization Procedure: A written procedure has been established for requesting and using replacement reserve funds. This includes clear guidelines, approval workflows, and thresholds for reserve levels based on property needs. 3) Monitoring & Reporting: Periodic audits will ensure funds are spent according to HUD guidelines. 4) Staff Training & Oversight: Staff will receive training on proper reserve management, and management will increase oversight to ensure funds are used appropriately. Completion Date: 11/1/2026 Contact: Jackie Oliveira-Director of Affordable Housing

View Audit 405980

Finding 1220319 (2026-001)

Material Weakness 2026

Asi Freeport, Inc.

MN

HUD Housing Programs Questioned Costs

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2026-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: One of the tenant files tested did not contain a copy of the tenant's disability verification. Recommendation: The Project should obtain a copy of the tenant's disability verificati...

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2026-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: One of the tenant files tested did not contain a copy of the tenant's disability verification. Recommendation: The Project should obtain a copy of the tenant's disability verification and place it in the tenant file. Action Taken: The Project agrees with the finding. They obtained a copy of the tenant's disability verification during June, 2026. If the Department of Housing and Urban Development has questions regarding this plan, please call Les Russo at 847-424-5601.

View Audit 405403

Finding 1220318 (2026-001)

Material Weakness 2026

Gibb Marianna Village, Inc.

FL

MANAGEMENT AGREENS WITH THE FINDING. THE SECURITY DEPOSIT DEFICIENCY WILL BE FUNDED IN THE AMOUNT OF $187. MANAGEMENT WILL ENSURE THAT THE SECURITY DEPOSITS ARE PROPERLY FUNDED IN THE FUTURE.

View Audit 405393

Finding 1218355 (2026-001)

Material Weakness 2026

Asi-Alexandria, Inc.

MN

HUD Housing Programs

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2026-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: The Project's replacement reserve cash balance was underfunded at March 31, 2026. Recommendation: The Project should deposit $30 into the replacement reserve account. Action Taken: ...

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2026-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: The Project's replacement reserve cash balance was underfunded at March 31, 2026. Recommendation: The Project should deposit $30 into the replacement reserve account. Action Taken: The Project agrees with the finding. Management deposited $30 into the replacement reserve account in April 2026. If the Department of Housing and Urban Development has questions regarding this plan, please call Jeanne Overocker at 651-645-7271.

View Audit 404632

Finding 1218249 (2026-001)

Material Weakness 2026

Shawme Heights II ,inc

MA

Cash Management HUD Housing Programs Subrecipient Monitoring

Remaining balance was deposited on April 16, 2026. In the future management will ensure deposits are made timely or obtain HUD appproval permitting delay if there were cash flows issues.

View Audit 404495

Finding 1214435 (2026-001)

Material Weakness 2026

Malone Community Center Housing Corporation Dba Malone Manor 10311083

IN

HUD Housing Programs Questioned Costs Procurement, Suspension & Debarment

Statement of Condition 2026-001 (Assistance Listing 14.155): The Corporation did not make all of the HUD required reserve for replacement deposits for the year ended January 31, 2026. Recommendation: Management should notify the lender of the new reserve for replacement deposit amount and make an ad...

Statement of Condition 2026-001 (Assistance Listing 14.155): The Corporation did not make all of the HUD required reserve for replacement deposits for the year ended January 31, 2026. Recommendation: Management should notify the lender of the new reserve for replacement deposit amount and make an additional $565 deposit to the reserve for replacements fund on the next billing. Management Response: Agree. Management has notified the lender of the new required deposit and will make an additional $565 deposit to the reserve for replacements fund on the next billing.

View Audit 401127

Finding 1235744 (2025-002)

Material Weakness 2025

MACDONALD CENTER

OR

Reporting Significant Deficiency Internal Control / Segregation of Duties § 200.303

Management agrees with the finding and will enhance existing reporting procedures to require documented evidence of review and approval for reports submitted to grantors. Macdonald Center dba Maybelle Center will retain documentation of supervisory review and approval as part of its grant compliance...

Management agrees with the finding and will enhance existing reporting procedures to require documented evidence of review and approval for reports submitted to grantors. Macdonald Center dba Maybelle Center will retain documentation of supervisory review and approval as part of its grant compliance files going forward.

View Audit 411420

Finding 1235735 (2025-001)

Material Weakness 2025

BOAT/U.S. FOUNDATION

MD

Subrecipient Monitoring § 200.303 § 200.332 § 200.514

The BoatU.S. ADVs contract will be amended for fiscal year 2026 contracts to include the ALN, and the need for a Single Audit for subrecipients that expend over $1,000,000 in federal funding in their given fiscal year. BoatU.S. will implement stricter deadlines for subrecipients to submit their bian...

The BoatU.S. ADVs contract will be amended for fiscal year 2026 contracts to include the ALN, and the need for a Single Audit for subrecipients that expend over $1,000,000 in federal funding in their given fiscal year. BoatU.S. will implement stricter deadlines for subrecipients to submit their biannual reports in 2026. Progress monitoring will be done throughout the year and documented by BoatU.S. personnel. This should also include project cost documentation of the subrecipient is used for authorized purposes. These reports may need to include photos of the tasks completed, if necessary. BoatU.S. plans to only reimburse for progress costs as incurred by the subrecipient.

View Audit 411415

Finding 1235734 (2025-003)

Material Weakness 2025

Peace Villa Inc.

MN

Internal Control / Segregation of Duties

Corrective Action Plan (CAP) a) Actions Planned in Response to the Finding: The Organization has determined the benefit of adequately segregating duties is less than the cost. Based on this assessment, the Organization is accepting the risk posed by the deficiency while also evaluating mitigating co...

Corrective Action Plan (CAP) a) Actions Planned in Response to the Finding: The Organization has determined the benefit of adequately segregating duties is less than the cost. Based on this assessment, the Organization is accepting the risk posed by the deficiency while also evaluating mitigating controls that will help reduce the risk of material misstatement of the financial statements. Management is attempting to mitigate the associated risks by doing the following: 1. Identifying areas lacking segregation of duties and where there are higher risks of fraud occurring. 2. Implementing limited segregation to the extent possible to reduce risks without impairing efficiency. 3. Using the knowledge of management and the Board to review accounting records and reports, b) Official Responsible for Ensuring Corrective Action: Brenda Schmitz, Property Manager, will monitor the effectiveness of the above actions and make changes as considered appropriate. c) Planned Completion Date for the Corrective Action: The corrective action plan for this finding will be completed by December 31, 2026. d) Explanation of Disagreement: There is no disagreement with the audit finding. e) Plan to Monitor Completion of Corrective Action: The Board will be monitoring this corrective action plan to review the recommendations and take appropriate action.

View Audit 411413

Finding 1235733 (2025-002)

Material Weakness 2025

Peace Villa Inc.

MN

Internal Control / Segregation of Duties

Corrective Action Plan (CAP) f) Actions Planned in Response to the Finding: The Organization does not plan to take any action but is aware of the condition. Based on the cost of correcting this deficiency, the Organization has decided to accept the risk associated with this deficiency. g) Official R...

Corrective Action Plan (CAP) f) Actions Planned in Response to the Finding: The Organization does not plan to take any action but is aware of the condition. Based on the cost of correcting this deficiency, the Organization has decided to accept the risk associated with this deficiency. g) Official Responsible for Ensuring Corrective Action: Brenda Schmitz, Property Manager, will review the financial statements and related footnotes and approve them. h) Planned Completion Date for the Corrective Action: The corrective action plan for this finding will be completed by December 31, 2026. i) Explanation of Disagreement: There is no disagreement with the audit finding. j) Plan to Monitor Completion of Corrective Action: The Board will be monitoring this corrective action plan.

View Audit 411413

Finding 1235732 (2025-001)

Material Weakness 2025

Peace Villa Inc.

MN

Internal Control / Segregation of Duties

Corrective Action Plan (CAP) a) Actions Planned in Response to the Finding: The Organization will review and approve adjusting journal entries as proposed by the auditor, as well as taking responsibility for the audited financial statements. b) Official Responsible for Ensuring Corrective Action: Br...

Corrective Action Plan (CAP) a) Actions Planned in Response to the Finding: The Organization will review and approve adjusting journal entries as proposed by the auditor, as well as taking responsibility for the audited financial statements. b) Official Responsible for Ensuring Corrective Action: Brenda Schmitz, Property Manager, will review the adjusting journal entries and approve them. c) Planned Completion Date for the Corrective Action: The corrective action plan for this finding will be completed by December 31, 2026. d) Explanation of Disagreement: There is no disagreement with the audit finding. e) Plan to Monitor Completion of Corrective Action: The Board will be monitoring this corrective action plan.

View Audit 411413

Finding 1235706 (2025-032)

Material Weakness 2025

State of Montana

MT

Procurement, Suspension & Debarment § 200.303 § 200.334

Noncompliant Buy America Procurements - Transit - MDT - The Montana Department of Transportation is strengthening internal controls and ensuring full compliance with federal requirements for procuring public transit vehicles. The Transit Section and the Procurement Unit are jointly developing compre...

Noncompliant Buy America Procurements - Transit - MDT - The Montana Department of Transportation is strengthening internal controls and ensuring full compliance with federal requirements for procuring public transit vehicles. The Transit Section and the Procurement Unit are jointly developing comprehensive procedures that clearly define roles and responsibilities, update procurement checklists, and establish a centralized location for maintaining complete procurement files. Responsible Party - Kimberly Doherty, Accounting Systems Supervisor, Montana Department of Transportation Target Implementation Date - 12/31/2026

View Audit 411404

Finding 1235698 (2025-065)

Material Weakness 2025

State of Montana

MT

Subrecipient Monitoring Allowable Costs / Cost Principles Eligibility § 200.303

Noncompliant Eligibility Determinations - Literacy - OPI - The Montana Office of Public Instruction concurs with this finding. This issue was addressed in the prior audit. The grant ended shortly after completion of that audit, and there was no opportunity to change awarded amounts once the issue wa...

Noncompliant Eligibility Determinations - Literacy - OPI - The Montana Office of Public Instruction concurs with this finding. This issue was addressed in the prior audit. The grant ended shortly after completion of that audit, and there was no opportunity to change awarded amounts once the issue was identified. The previous superintendent agreed not to pull funds back. The matter has been corrected in the new grant that began in October 2024, and the issue does not appear to affect the new grant. Mechanisms have been implemented to ensure that only schools meeting eligibility requirements receive funds. Responsible Party - April Grady, Chief Financial Officer, Montana Office of Public Instruction Target Implementation Date - 12/31/2026

View Audit 411404

Corrective Action Plans

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