Corrective Action Plans

Finding 1170767 (2025-001)

Material Weakness 2025

KS

Equipment & Real Property Management Matching / Level of Effort / Earmarking § 200.303

Recommendations: The District should include infrastructure items in the current inventory system. Action Taken: We agree with the recommendation. Our targeted implementation date is January 2026.

View Audit 384012

Finding 1170764 (2025-001)

Material Weakness 2025

Goodwill Educates, Inc

IN

Cash Management

Goodwill Educates, Inc. acknowledges the finding related to the inclusion of in-kind contribution expenses in a federal reimbursement request. We agree with the auditor’s assessment that this was an isolated error. Upon internal review, we determined that the error stemmed from a misclassification d...

Goodwill Educates, Inc. acknowledges the finding related to the inclusion of in-kind contribution expenses in a federal reimbursement request. We agree with the auditor’s assessment that this was an isolated error. Upon internal review, we determined that the error stemmed from a misclassification during the preparation of the reimbursement documentation. The expenses in question were supported by in-kind contributions and not actual cash disbursements, and therefore should not have been submitted for reimbursement. Corrective action was taken by Goodwill Educates, Inc. and all in-kind contributions submitted for federal reimbursement have been billed to the school by Evansville Goodwill Industries, Inc. and cash disbursements will be made. A reimbursable bill for these in-kind contributions was submitted to Goodwill Educates, Inc. in September 2025 and funds will be disbursed in October 2025. Internal training will be conducted with all Finance staff, contracted with Goodwill Educates, Inc., to review and re-train on proper federal reimbursement procedures. An internal control of two separate finance staff to review all federal reimbursement requests prior to submission will be implemented by the organization in the 4th quarter of 2025.

View Audit 384004

Finding 1170763 (2025-001)

Material Weakness 2025

Housing Authority of the City of West Point

GA

Cash Management HUD Housing Programs

2025-001 ALN 14.872 – Public Housing Capital Fund Program – Cash Management The CEO agrees with the finding and will follow the Auditor's recommendations as listed on the Schedule of Findings and Questioned Costs. Person Responsible for Correction of Finding: Mr. Robert Dull, CEO Projected Completio...

2025-001 ALN 14.872 – Public Housing Capital Fund Program – Cash Management The CEO agrees with the finding and will follow the Auditor's recommendations as listed on the Schedule of Findings and Questioned Costs. Person Responsible for Correction of Finding: Mr. Robert Dull, CEO Projected Completion Date: June 30, 2026

View Audit 383996

Finding 1170762 (2025-001)

Material Weakness 2025

Metropolitan Community College

MO

Student Financial Aid Questioned Costs Special Tests & Provisions

Enrollment information was not submitted within the required timeframe by the College. Personnel Responsible for Corrective Action: Dena Norris, Associate Vice Chancellor of Student Financial Services, and Tara Dettmer, Director of Financial Aid – Fiscal Operations Anticipated Completion Date: Corre...

Enrollment information was not submitted within the required timeframe by the College. Personnel Responsible for Corrective Action: Dena Norris, Associate Vice Chancellor of Student Financial Services, and Tara Dettmer, Director of Financial Aid – Fiscal Operations Anticipated Completion Date: Corrective action plan will be implemented by June 30, 2026. Views of Responsible Officials and Planned Corrective Action Plan: Despite best efforts by the College to correct the errors in enrollment reporting, the College experienced turnover among staff, and as a result, was unable to shift staffing resources or quickly hire replacement staff to correct the finding. Metropolitan Community College (MCC) is in the process of hiring additional staff dedicated to enrollment and compliance reporting. MCC will make a random selection of 10-15 students each month to verify data was correctly transmitted to National Student Clearinghouse (NSC). A secondary check of these students will be done to ensure the data is also transmitted to the National Student Loan Data System (NSLDS). MCC will also ensure error reports and other data issues are resolved in a timely manner to ensure reporting of students is completed within the regulatory timeframe. Due to the implementation of a new Enterprise Resource Planning system MCC is also validating and correcting any submission errors.

View Audit 383985

Finding 1170758 (2025-002)

Material Weakness 2025

Carl Sandburg College-Community College District 518

IL

Student Financial Aid

Sandburg’s procedures require reviewing and clearing all C codes/comment codes that require resolution. 1. We reviewed the recommendation presented, and we have added language to clearly outline procedures to show the decision-making process and documentation steps, depending on the particular code....

Sandburg’s procedures require reviewing and clearing all C codes/comment codes that require resolution. 1. We reviewed the recommendation presented, and we have added language to clearly outline procedures to show the decision-making process and documentation steps, depending on the particular code. Our procedures for identifying and resolving comment codes are compliant with the recommendations. 2. We have enhanced the workflow to go over the ISIR Code resolution process each year before file review begins. 3. We have added procedures to have the reviewer sign off showing the decision, the reviewer's initials and the date when resolution involves a decision as outlined in the FAFSA specifications guide. 4. Training has been completed by the Director of Financial Aid, Associate Director of Financial Aid. Person(s) Responsible: Dustin Zimmerman, Director of Financial Aid Timing for Implementation: Fall 2025

View Audit 383954

Finding 1170757 (2025-001)

Material Weakness 2025

Carl Sandburg College-Community College District 518

IL

Student Financial Aid Reporting

Sandburg reviewed the audit finding regarding NSLDS reporting. We acknowledge the finding and implemented the following corrective action plan: 1. Added an additional NSLDS report following final grades to ensure we are picking up unofficial withdrawals. 2. Updated our reporting schedule with Cleari...

Sandburg reviewed the audit finding regarding NSLDS reporting. We acknowledge the finding and implemented the following corrective action plan: 1. Added an additional NSLDS report following final grades to ensure we are picking up unofficial withdrawals. 2. Updated our reporting schedule with Clearinghouse/NSLDS. 3. Updated written procedures to include a quality control check before the NLSDS/Clearinghouse file is sent. 4. Added an end-of-term quality control spot check to review that unofficial withdrawal submissions went through. 5. Updated written procedures for NSLDS reporting. Procedures are reviewed as regulations change, as our reporting software evolves, and during staff transitions to ensure compliance. 6. Training completed by the Dean of Enrollment Management, Director of Advising, Registrar, Associate Director of Advising & Transfer Coordination, Director of Financial Aid, Coordinator of Financial Aid, Veterans & Military Services. Procedures are reviewed as regulations change and during staff transitions to ensure compliance. Person(s) Responsible: Angela Snow; Director of Advising, Registrar Timing for Implementation: These procedures were implemented by December 2025.

View Audit 383954

Finding 1170752 (2025-002)

Material Weakness 2025

Marcellus Community Schools

MI

Allowable Costs / Cost Principles Material Weakness Internal Control / Segregation of Duties

Auditor Description of Condition and Effect: During our audit procedures over the District’s payroll process, we noted that an employee’s wages were allocated to the food service function based on a straight percentage instead actual work performed. As a result of this condition, the District does n...

Auditor Description of Condition and Effect: During our audit procedures over the District’s payroll process, we noted that an employee’s wages were allocated to the food service function based on a straight percentage instead actual work performed. As a result of this condition, the District does not have proper controls in place over its procedures for allocation of wages. Auditor Recommendation: The District should utilize timecards to support the allocation of wages to federal functions. Corrective Action: The District will. Responsible Person: Jamie Johncock, Business Manager Anticipated Completion Date: June 30, 2025

View Audit 383945

Finding 1170658 (2025-003)

Material Weakness 2025

Detroit Housing Commission

MI

HUD Housing Programs Questioned Costs Subrecipient Monitoring

Condition: The Commission did not submit the required financial and performance reports promptly. Planned Corrective Action: The Capital Team Project Manager continues to reconcile HUD’s EPIC and ELOCC systems with Yardi monthly to ensure timely filing of capital projects' closeouts. This tracking c...

Condition: The Commission did not submit the required financial and performance reports promptly. Planned Corrective Action: The Capital Team Project Manager continues to reconcile HUD’s EPIC and ELOCC systems with Yardi monthly to ensure timely filing of capital projects' closeouts. This tracking critical spreadsheet, created by the Lead Performance Officer, will trigger key reporting dates for the DHC Capital Fund Program to remain in compliance with HUD reporting deadlines. At a minimum, monthly, this critical spreadsheet is distributed to the Supervisor of Capital and the Lead Performance Officer to ensure compliance. However, this was on the radar and continues the process of cleaning older items for corporate hygiene. As of December 2025, this was closed out and approved in EPIC by HUD. Contact person responsible for corrective action: Michael Edwards, Capital Asset & Skilled Trades Supervisor Anticipated Completion Date: 12/31/2025

View Audit 383877

Finding 1170657 (2025-002)

Material Weakness 2025

Detroit Housing Commission

MI

Subrecipient Monitoring HUD Housing Programs Questioned Costs

Condition: The Commission did not complete fiscal year 2025 recertifications. Planned Corrective Action: Staff have been retrained on the compliance requirements under the standards of the HCV Program through the oversight of the Rental Assistance Department Manager and Continued Occupancy Superviso...

Condition: The Commission did not complete fiscal year 2025 recertifications. Planned Corrective Action: Staff have been retrained on the compliance requirements under the standards of the HCV Program through the oversight of the Rental Assistance Department Manager and Continued Occupancy Supervisor. The Department Manager and Supervisor continue to utilize all Yardi monitoring reports to ensure the Department is operating in accordance with industry standards. Reporting is be done and monitored monthly to meet set goals. Weekly, Department Manager has review the certification pipeline to ensure compliance and follow up with the Housing Specialist to ensure compliance and meeting set weekly and monthly goals and metrics. We continue to work in accordance with HUD rules and regulations where Annual Recertification processes are concerned. Per HUD communication provided to us, as of June 30, 2025, HCV is 100% compliant with HUD recertification requirements. Contact person responsible for corrective action: Felicia Burris, HCV Program Manager Anticipated Completion Date: 7/1/2025

View Audit 383877

Finding 1170654 (2025-001)

Material Weakness 2025

Detroit Housing Commission

MI

Questioned Costs Subrecipient Monitoring Matching / Level of Effort / Earmarking

Condition: The Commission was unable to send failed HQS inspection notices promptly to participants who needed to correct deficiencies. Planned Corrective Action: HCV will hire additional internal support for HQS inspections to work alongside external vendors and ensure timely updates/mailings/, and...

Condition: The Commission was unable to send failed HQS inspection notices promptly to participants who needed to correct deficiencies. Planned Corrective Action: HCV will hire additional internal support for HQS inspections to work alongside external vendors and ensure timely updates/mailings/, and closeouts are uploaded to the work management system, Yardi. Contact person responsible for corrective action: Felicia Burris, HCV Program Manager Anticipated Completion Date: 6/30/2026

View Audit 383877

Finding 1170629 (2025-001)

Material Weakness 2025

Otis College of Art and Design

CA

Student Financial Aid Reporting Special Tests & Provisions

November 21, 2025 FINDING 2025-001 – Special Tests and Provisions – Enrollment Reporting: Significant Deficiency in Internal Control over Compliance Otis College of Art and Design agrees with the finding. Upon review of the finding, Financial Aid administration met with Registrar’s staff to create a...

November 21, 2025 FINDING 2025-001 – Special Tests and Provisions – Enrollment Reporting: Significant Deficiency in Internal Control over Compliance Otis College of Art and Design agrees with the finding. Upon review of the finding, Financial Aid administration met with Registrar’s staff to create a new procedure whereby immediate reporting of withdrawals are made directly to NSLDS in addition to the regularly scheduled monthly reports to NSLDS through the National Student Clearinghouse (NSC). This immediate reporting should eliminate any timing issues with the monthly reports through NSC. In addition, a joint effort to streamline the routing of withdrawal forms to the appropriate departments for faster processing is underway. This reprocessing of the withdrawal forms will be implemented in the next 120 days. Responsible Office and Individuals The Executive Director of Financial Aid and The One Stop, Michaela Matsumoto and Registrar, Nicole Raef are the responsible individuals for implementation of the corrective action plan. Corrective Action Plan The Registrar implemented a centralized tracking system that is now used for every withdrawal and graduation status change at all points in the semester. Registration reviews the withdrawal list weekly to ensure each change is accurately reflected in both NSC and NSLDS. To address graduation status updates, we are adjusting the timeline of our final spring enrollment report to NSC so it is submitted at the end of May. This allows NSC to transmit the data to NSLDS at the beginning of June resulting in fewer manual updates in NSLDS. Registration will then review all graduated students to confirm accurate NSLDS reporting rather than relying solely on Clearinghouse submissions. In addition, the Registration office will review and correct the NSC error report on a monthly basis. The Financial Aid and Registration offices will also initiate quarterly meetings to ensure timely submissions and address any emerging issues.

View Audit 383866

Finding 1170625 (2025-001)

Material Weakness 2025

Primary Health Care, Inc.

IA

Questioned Costs Special Tests & Provisions Matching / Level of Effort / Earmarking

Primary Health Care Corrective Action Plan – Sliding Fee Finding: During the External Financial Audit for FY 2025, it was determined that certain patients had received sliding fee discounts that were not consistent with the stated sliding fee discount categories under PHC’s policy. Action Step Lead ...

Primary Health Care Corrective Action Plan – Sliding Fee Finding: During the External Financial Audit for FY 2025, it was determined that certain patients had received sliding fee discounts that were not consistent with the stated sliding fee discount categories under PHC’s policy. Action Step Lead Support Due Date Update resource materials associated with sliding fee discounts and distribute to necessary staff. Provide training to necessary staff on sliding fee discount policy and any changes to discounts. Beth Frantum, CFO Revenue Cycle Director Patient Services Director March 2026 Develop and implement an internal review process to provide reasonable assurance that Slide calculations are accurate and EPIC reflects the correct amount expected for services. Beth Frantum, CFO Revenue Cycle Director Patient Services Director John Shaw, Director of Clinics April 2026

View Audit 383865

Finding 1170622 (2025-003)

Material Weakness 2025

St. Croix Central School District

WI

School Nutrition Programs

Child Nutrition Cluster – Assistance Listing No. 10.553, 10.555 and 10.559 Recommendation: The District should review their internal control process for free and reduced meal applications to ensure that the proper controls are being implemented. Explanation of disagreement with audit finding: There ...

Child Nutrition Cluster – Assistance Listing No. 10.553, 10.555 and 10.559 Recommendation: The District should review their internal control process for free and reduced meal applications to ensure that the proper controls are being implemented. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The District will revise their internal control process to ensure that the District's controls for free and reduces meal applications are being implemented. Name(s) of the contact person(s) responsible for corrective action: Tim Widiker, Superintendent. Planned completion date for corrective action plan: December 2025.

View Audit 383860

Finding 1170558 (2025-001)

Material Weakness 2025

Lake Park High School District No. 108

IL

Questioned Costs Cash Management

Finding Synopsis: Amounts were submitted to the state for reimbursement were higher than costs with required supporting documentation. The district had difficulty in providing supporting documentation for the amounts submitted for reimbursement, and expenditures could not be easily separated between...

Finding Synopsis: Amounts were submitted to the state for reimbursement were higher than costs with required supporting documentation. The district had difficulty in providing supporting documentation for the amounts submitted for reimbursement, and expenditures could not be easily separated between the last two fiscal years the grant was received. Action Steps: The district implemeted changes in control activites to ensure that proper review controls are in place and that all grant reimbursements have adequate documentation. Contact Person: Alicia Cieszykowski, Assistant Superintendent for Business Services, 630-295-5430 Anticipated Completion Date: 06/30/2026

View Audit 383817

Finding 1170557 (2025-002)

Material Weakness 2025

Los Angeles Unified School District

CA

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Questioned Costs § 200.300 § 200.306 § 200.308 § 200.309 § 200.403

The purpose of the Goods Receipt (GR) is to record receipt of goods or services as soon as they are delivered and verified to be in acceptable condition. A Goods receipt must be posted in SAP for all items actually received. Vendors submit invoice(s) referencing the purchase order (PO) directly to A...

The purpose of the Goods Receipt (GR) is to record receipt of goods or services as soon as they are delivered and verified to be in acceptable condition. A Goods receipt must be posted in SAP for all items actually received. Vendors submit invoice(s) referencing the purchase order (PO) directly to Accounts Payable after delivery, indicating that the goods or services have been provided and requesting payment. Accounts Payable then reviews the vendor invoice, purchase order, and goods receipt in SAP to perform the required three-way match (PO, GR, and vendor invoice) before processing payment. 1. The Accounts Payable team will collaborate with the Procurement Services Division to establish and implement a process that ensures the timely review and reconciliation of Goods Receipt (GR) entries. This will include the development of clear guidance / training materials for schools and offices to periodically review their GR balances. Training will be conducted via Virtual Office Hours on a quarterly basis for sites to make necessary adjustments when the goods or services received differ from the original Purchase Order (PO) or the corresponding invoice. 2. The Accounts Payable team will collaborate with the Procurement Services Division to develop supplemental documentation and guidance regarding proof of delivery for goods and services received. 3. Accounts Payable staff will receive ongoing training throughout the year on documentation and reconciliation requirements, particularly when new internal controls, procedures, and processes are created. Training will be incorporated into regular team meetings, procedural updates, and onboarding for new team members to maintain alignment and accuracy across the department. The implementation target date for the above corrective action plan is June 30, 2026. Name: Rocio Saucedo Title: Director of Accounts Payable Contact Information: Rocio.Saucedo@lausd.net

View Audit 383812

Finding 1170556 (2025-003)

Material Weakness 2025

Los Angeles Unified School District

CA

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

Payroll Administration concurs with the recommendation pertaining to the preparation, review, and approval of employee timesheets to ensure the accuracy and completeness of payroll records. Employee timesheets and payroll records are originated, reviewed, and retained at the respective work location...

Payroll Administration concurs with the recommendation pertaining to the preparation, review, and approval of employee timesheets to ensure the accuracy and completeness of payroll records. Employee timesheets and payroll records are originated, reviewed, and retained at the respective work locations. Therefore, Payroll Administration does not have direct access to these site-level records. To strengthen compliance, Payroll Administration will continue to provide targeted training and guidance to time reporters and time approvers on the timely review and approval of timesheets, the required time and effort certification, as well as the reconciliation of timesheet data with SAP entries. These topics will be reinforced during the monthly Time Reporter and Time Approver Virtual Office Hours. Furthermore, Payroll Administration will continue to issue periodic communications and disseminate the Best Practices Worksheet, which outlines key payroll compliance requirements, including adherence to payroll cut-off deadlines and reconciliation of timesheets and time entry in SAP. Payroll Administration remains committed to supporting District departments and school sites in maintaining full compliance with established payroll policies and procedures. Name: Araceli Pineda Title: Director, Payroll Administration Contact Information: araceli.pineda@lausd.net

View Audit 383812

Finding 1170548 (2025-001)

Material Weakness 2025

Los Angeles Unified School District

CA

School Nutrition Programs Questioned Costs Cash Management § 200.516

The Food Services Division is committed to providing great food and maintaining rigorous internal controls and continuous monitoring to safeguard program integrity. The discrepancy found at one school is not representative of our program, as we do ongoing random audits of submitted claims to verify ...

The Food Services Division is committed to providing great food and maintaining rigorous internal controls and continuous monitoring to safeguard program integrity. The discrepancy found at one school is not representative of our program, as we do ongoing random audits of submitted claims to verify the accuracy of submitted data. These layered oversight measures provide multiple levels of verification to minimize and eliminate the likelihood of reporting errors and ensure compliance with applicable state and federal program requirements. At Annalee El, the school with an overclaim of 104 meals, we found that the manager had moved from the school, and in the interim, our review protocol fell short. Given the large volume of meals served annually across the District, the over-claim discrepancy identified during the FY 24-25 audit represents an isolated incident rather than a systemic deficiency in LAUSD Food Services operations. The claim verification process followed at schools is stated below: • The Food Service Manager conducts a weekly review of the prior week’s daily meal count documents to identify and correct any discrepancies. • The Food Service Manager generates and reviews a weekly Meal Counts Report from the Cafeteria Management System (CMS) to verify recorded data. • The Food Service Manager compares the daily meal count documents against the five-day Meal Counts Report to ensure data alignment and accuracy. • The Manager performs an additional verification by reconciling daily meal count documents with the five-day Meal Counts Report from CMS. Any identified errors are corrected immediately in CMS. This reconciliation process is completed prior to the submission of claims to the Child Nutrition Information and Payment System. • The Area Food Services Supervisor (AFSS) and Regional Manager (RM) conduct random weekly reviews of meal counts for accuracy, utilizing reports provided by Central Office staff to support this verification process. • Central Office staff perform a monthly audit of meal count records and prepare a draft report for review by the AFSS and RM to validate findings and confirm accuracy. Retraining of the staff at Annalee El has been completed, and the manager and supervisor teams are verifying that the above protocol is being followed consistently at all schools. Name: Manish Singh Title: Director, Food Services Division Telephone: (213) 241-2993

View Audit 383812

Finding 1170531 (2025-003)

Material Weakness 2025

West Harvey-Dixmoor School District 147

IL

Allowable Costs / Cost Principles Questioned Costs Subrecipient Monitoring § 200.308 § 200.403

Condition: Nine (9) employee payroll expenditures were claimed at an hourly rate greater than that approved by ISBE. Corrective Action Plan: Management will review its policies and procedures and implement changes to strengthen internal control over federal reporting. In addition, budgets will be mo...

Condition: Nine (9) employee payroll expenditures were claimed at an hourly rate greater than that approved by ISBE. Corrective Action Plan: Management will review its policies and procedures and implement changes to strengthen internal control over federal reporting. In addition, budgets will be monitored and amended accordingly within the period performance of the grant. Responsible Person: Janiesa Owens, Chief School Business Official Anticipated Completion Date: June 30, 2026

View Audit 383801

Finding 1170530 (2025-004)

Material Weakness 2025

West Harvey-Dixmoor School District 147

IL

Questioned Costs Allowable Costs / Cost Principles Cash Management § 200.303

Condition: Three (3) monthly claims for reimbursement reported meal counts in excess of those supported by records of the District. Corrective Action Plan: Management will review its policies and procedures and implement changes to strengthen internal control over federal reporting. In addition, und...

Condition: Three (3) monthly claims for reimbursement reported meal counts in excess of those supported by records of the District. Corrective Action Plan: Management will review its policies and procedures and implement changes to strengthen internal control over federal reporting. In addition, underlying claim support will undergo review before claims are submitted to the ISBE. Responsible Person: Janiesa Owens, Chief School Business Official Anticipated Completion Date: June 30, 2026

View Audit 383801

Finding 1170521 (2025-003)

Material Weakness 2025

Northern Kentucky University

KY

Internal Control / Segregation of Duties Questioned Costs § 200.303

Views of responsible officials and planned corrective actions: The University agrees with the auditors' finding and recommendations. The following corrective action will be taken: The University will review and revise policies and procedures related to reviewing and approving Research & Development ...

Views of responsible officials and planned corrective actions: The University agrees with the auditors' finding and recommendations. The following corrective action will be taken: The University will review and revise policies and procedures related to reviewing and approving Research & Development grant scholarships prior to disbursement. The University will do the following:  Implement a review process to verify scholarships are reviewed and approved by Grant Administration prior to disbursement.  Provide training to relevant staff on proper documentation procedures to forward to Grant Administration to enhance compliance and accuracy.

View Audit 383774

Finding 1170520 (2025-002)

Material Weakness 2025

Northern Kentucky University

KY

Eligibility Internal Control / Segregation of Duties Questioned Costs § 200.303

Views of responsible officials and planned corrective actions: The University agrees with the auditors' finding and recommendations. The following corrective actions have been taken: During the 2023-2024 academic year, EngageKY implemented a new process for recordkeeping related to the recruitment a...

Views of responsible officials and planned corrective actions: The University agrees with the auditors' finding and recommendations. The following corrective actions have been taken: During the 2023-2024 academic year, EngageKY implemented a new process for recordkeeping related to the recruitment and selection of Kentucky College Coaches. As part of the implementation, site supervisors and program staff began to use Salesforce to maintain notes from screening interviews and general interviews. The missing documentation referenced in this finding was for individuals hired prior to the new process. EngageKY will continue to use Salesforce to document the recruitment and selection of Kentucky College Coaches.

View Audit 383774

Finding 1170518 (2025-001)

Material Weakness 2025

Northern Kentucky University

KY

Student Financial Aid

Views of responsible officials and planned corrective actions: The University agrees with the auditor's finding and recommendations. The following corrective action will be taken: The University has awarded aid in the amount of $3,729 to students which represents student earned aid from an updated R...

Views of responsible officials and planned corrective actions: The University agrees with the auditor's finding and recommendations. The following corrective action will be taken: The University has awarded aid in the amount of $3,729 to students which represents student earned aid from an updated R2T4 calculation accounting for the proper use of the withdrawal date, institutional charges and total aid for 2024-25 academic year. The University will review, and revise policies and procedures related to the return of funds calculation. Specifically, the University will:  Update procedures to include a review of input items by AVP prior to finalizing returns.  Provide training to relevant staff, including staff outside of the Office of Student Financial Assistance, on proper calculation methods to ensure compliance and accuracy of R2T4 calculations. The University is exploring opportunities to automate partially or completely the R2T4 process to support accurate and efficient processing and enhance compliance.

View Audit 383774

Finding 1170515 (2025-004)

Material Weakness 2025

North Central Michigan College

MI

Procurement, Suspension & Debarment

Auditor Description of Condition and Effect. During our review of procurement transactions, we noted that the College did not verify or document that vendors were not suspended or debarred at the time of contract execution or payment. Specifically, the procurement files reviewed lacked evidence demo...

Auditor Description of Condition and Effect. During our review of procurement transactions, we noted that the College did not verify or document that vendors were not suspended or debarred at the time of contract execution or payment. Specifically, the procurement files reviewed lacked evidence demonstrating that vendor eligibility was confirmed through SAM.gov or an equivalent verification process in accordance with federal requirements at the time the College entered into the covered transactions. The failure to monitor suspension and debarment could cause the College to enter covered transactions with vendors who are not eligible to have goods or services purchased with federal monies. Upon review of the excluded parties listing subsequent to year end, it was determined that none of the parties that were awarded either procurement or nonprocurement contracts were excluded parties. Auditor Recommendation. We recommend the College review its procedures for issuing contracts to ensure that the appropriate suspension and debarment evidence of verifications are retained for all vendors providing goods or services in excess of $25,000. The recommended best practice is to include a certification verifying suspension and debarment in every contract funded by federal dollars with every vendor to ensure compliance. Corrective Action. The entity will implement procedures to ensure vendor eligibility is verified through SAM.gov prior to contract execution or payment for federally funded procurements. Documentation of the verification will be retained in the procurement file. Responsible Persons. Tom Zeidel, Vice President of Finance and Facilities and Troy Slater, Director of Business Office. Anticipated Completion Date. June 30, 2026

View Audit 383720

Finding 1170513 (2025-003)

Material Weakness 2025

North Central Michigan College

MI

Procurement, Suspension & Debarment § 200.318 § 200.320

Auditor Description of Condition and Effect. During our review of procurement transactions, we identified one instance of sole-source procurement for which the College did not properly document a procurement decision in accordance with 2 CFR 200.320 related to justifying the use of a noncompetitive ...

Auditor Description of Condition and Effect. During our review of procurement transactions, we identified one instance of sole-source procurement for which the College did not properly document a procurement decision in accordance with 2 CFR 200.320 related to justifying the use of a noncompetitive procurement method. Specifically, the procurement files lacked written justification demonstrating why competition was not feasible and did not include evidence of required approvals in accordance with the College’s procurement policies even though the arrangement was allowable under the circumstances. As a result of this condition, the College could not document a procurement decision for one vendor in accordance with federal regulations. Auditor Recommendation. We recommend the College strengthen controls over sole-source procurements by requiring documented justification and formal approval prior to executing noncompetitive procurement arrangements. Management should also provide additional training to procurement and program staff to ensure consistent compliance with federal procurement requirements and internal policies. Corrective Action. The entity will strengthen procurement controls by requiring written justification and documented approval for all sole-source procurements in accordance with Uniform Guidance and the entity’s procurement policies. A standardized sole-source justification form will be implemented and required prior to execution of any noncompetitive procurement funded with federal awards. Responsible Persons. Tom Zeidel, Vice President of Finance and Facilities and Troy Slater, Director of Business Office. Anticipated Completion Date. June 30, 2026

View Audit 383720

Finding 1170512 (2025-002)

Material Weakness 2025

North Central Michigan College

MI

Equipment & Real Property Management § 200.313

Auditor Description of Condition and Effect. The College does not have a formal process or system in place to track fixed assets acquired with federal award funds. As a result, there is no centralized or consistent documentation of asset details, location, or usage for assets purchased with federal ...

Auditor Description of Condition and Effect. The College does not have a formal process or system in place to track fixed assets acquired with federal award funds. As a result, there is no centralized or consistent documentation of asset details, location, or usage for assets purchased with federal funds. Without proper tracking, the entity is at risk of noncompliance with federal regulations, potential loss or misuse of federally funded assets, and challenges in conducting accurate inventories or audits. This could lead to questioned costs or disallowed expenditures during federal reviews. Auditor Recommendation. That the College implement a formal fixed asset tracking system that complies with 2 CFR §200.313. This system should include procedures for recording asset details, conducting periodic inventories, and reconciling records. Staff responsible for asset management should be trained on federal requirements to ensure ongoing compliance. Corrective Action. In its Jenzabar accounting system software, the College will code fixed assets that were, and will be, acquired with federal award funds. The College will also set reminders in May 2026, and at least once every two years thereafter, to conduct an inventory and reconcile this with the accounting records. Responsible Persons. Tom Zeidel, Vice President of Finance and Facilities and Troy Slater, Director of Business Office. Anticipated Completion Date. October 31, 2025.

View Audit 383720

Corrective Action Plans

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