Corrective Action Plans

Finding 1208262 (2025-005)

Material Weakness 2025

Polytechnic University of Puerto Rico, Inc.

PR

Student Financial Aid

Once identified, the population selection parameters in Ellucian Banner were corrected, ensuring that the files reflect the complete and appropriate data.

View Audit 399265

Finding 1208261 (2025-004)

Material Weakness 2025

Polytechnic University of Puerto Rico, Inc.

PR

Student Financial Aid Subrecipient Monitoring Matching / Level of Effort / Earmarking

Staffing Enhancement - Approval was granted for the hiring of an additional staff member dedicated to the refund process. This action increases operational capacity and strengthens segregation of duties, a key regulatory control to prevent delays in processing Title IV credit balance refunds. Staff ...

Staffing Enhancement - Approval was granted for the hiring of an additional staff member dedicated to the refund process. This action increases operational capacity and strengthens segregation of duties, a key regulatory control to prevent delays in processing Title IV credit balance refunds. Staff Training - Formal training was provided to personnel involved in the refund process to ensure compliance with updated procedures and strengthen internal controls. Technical consultations with Ellucian Banner were conducted to ensure that processes align with system best practices and institutional requirements. Completion of Procedures Manual - The procedures manual was finalized and includes standardized steps that streamline workflow, reduce operational risks, and ensure full traceability of each stage of the refund process. The manual is a mandatory reference for the personnel involved in refund process. Interdepartmental Work Schedule - A coordinated work schedule was established among Financial Aid, Bursar, and Accounting. The schedule outlines specific dates for financial aid disbursements, refund processing in student accounts, and issuance of payments to students. This measure strengthens interdepartmental coordination and supports compliance with required timelines. With the implementation of these corrective and preventive measures, the University reinforces its commitment to meeting all required timelines, improving administrative efficiency, and maintaining strong internal controls to ensure timely and compliant processing of Title IV credit balance refunds.

View Audit 399265

Finding 1208259 (2025-003)

Material Weakness 2025

Polytechnic University of Puerto Rico, Inc.

PR

Student Financial Aid Subrecipient Monitoring Matching / Level of Effort / Earmarking

Upon identification of the issue, the Financial Aid Office conducted a comprehensive review of its internal procedures and implemented corrective measures to ensure full compliance with Title IV regulations. These measures included reinforcing staff training through targeted sessions, strengthening ...

Upon identification of the issue, the Financial Aid Office conducted a comprehensive review of its internal procedures and implemented corrective measures to ensure full compliance with Title IV regulations. These measures included reinforcing staff training through targeted sessions, strengthening internal monitoring controls, and confirming that the new system is properly configured to generate and track disbursement notifications. Additionally, the University is in the process of implementing the ISE system, with an expected full deployment date of April 2026, which will further enhance automation and tracking capabilities related to disbursement notifications. As part of the enhanced monitoring controls, the office has established periodic reviews of disbursement records, monthly reconciliation processes, and the routine generation and review of system reports to verify that notifications are sent timely and accurately. These steps are designed to prevent similar occurrences in the future and ensure that all students receiving Direct Loans are consistently provided with the required disbursement notifications in accordance with regulatory requirements.

View Audit 399265

Finding 1208258 (2025-002)

Material Weakness 2025

Polytechnic University of Puerto Rico, Inc.

PR

Cash Management Student Financial Aid § 200.303

The University will implement a monthly reconciliation process linking each fund request (G5 drawdown) to underlying Title IV disbursements using Ellucian Banner reports including the Disbursement Report, supported by a standardized reconciliation. Policies and new procedures for cash management, re...

The University will implement a monthly reconciliation process linking each fund request (G5 drawdown) to underlying Title IV disbursements using Ellucian Banner reports including the Disbursement Report, supported by a standardized reconciliation. Policies and new procedures for cash management, reconciliation, and record retention will be design and formalized. Additionally, all documentation will be centrally maintained, the staff will be trained in the new process, and the University will pursue Banner reporting enhancements to improve transaction-level tracking.

View Audit 399265

Finding 1208252 (2025-003)

Material Weakness 2025

Barry County Community Mental Health Authority

MI

Procurement, Suspension & Debarment § 200.214

Condition: The CMHSP did not perform a reveiw of sam.gov to ensure that the vendor was not suspended or debarred prior to entering into an agreement with them. A subsequent review of sam.gov was conducted showing that the vendor was not suspended or debarred. Corrective Action: Those involved in man...

Condition: The CMHSP did not perform a reveiw of sam.gov to ensure that the vendor was not suspended or debarred prior to entering into an agreement with them. A subsequent review of sam.gov was conducted showing that the vendor was not suspended or debarred. Corrective Action: Those involved in managing the grant will ensure that a suspension and debarment review is conducted for any vendor with whom an agreement is established prior to any work being conducted utilizing grant funding. Staff responsible: Kristyn Kostelec, Grant Manager and Kelly Jenkins, Chief Operating Officer Anticipated completion date: immediate, as new contracts occur.

View Audit 399222

Finding 1208251 (2025-002)

Material Weakness 2025

Barry County Community Mental Health Authority

MI

Internal Control / Segregation of Duties Subrecipient Monitoring Allowable Costs / Cost Principles

Condition: The CMHSP included all contract costs, including amounts over $25,000 in the modified total direct costs. Corrective Action: Those involved in managing and reporting for the grant will review the approved budget to ensure understanding of what has been approved by SAMHSA. Prior to request...

Condition: The CMHSP included all contract costs, including amounts over $25,000 in the modified total direct costs. Corrective Action: Those involved in managing and reporting for the grant will review the approved budget to ensure understanding of what has been approved by SAMHSA. Prior to requesting funds each month, accounting assistant and chief operating officer will review total costs to date to ensure they are accounted properly in line with modified total direct costs. At year end, a final check will occur to ensure all costs are reported according to modified total direct costs methodology. Staff responsible: Kristyn Kostelec, Grant Manager, Karen Watson, Accounting Assistant, and Kelly Jenkins, Chief Operating Officer Anticipated completion date: 12/30/26

View Audit 399222

Finding 1208250 (2025-001)

Material Weakness 2025

Barry County Community Mental Health Authority

MI

Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.402

Condition: Expenditures charged to the grant were not authorized in the grant budget. Corrective Action: Each month, the grant manager and accounting assistant will review the items charged to the grant in detail to ensure that all charges are appropriately accounted for according to the grant manag...

Condition: Expenditures charged to the grant were not authorized in the grant budget. Corrective Action: Each month, the grant manager and accounting assistant will review the items charged to the grant in detail to ensure that all charges are appropriately accounted for according to the grant manager's direction and approved grant budget. Staff responsible: Kristyn Kostelec, Grant Manager and Karen Watson, Accounting Assistant Anticipated completion date: 6/30/26

View Audit 399222

Finding 1208249 (2025-002)

Material Weakness 2025

B'nai B'rith Covenant House of Peoria Inc. II 072-Ee038

IL

HUD Housing Programs

Section 202 - Supportive Housing for the Elderly Mortgage Financing– Assistance Listing No. 14.157 Recommendation: We recommend the funds over the FDIC limit be collateralized or insured, or invested at a bank with an approved HUD accepted rating. Explanation of disagreement with audit finding: Ther...

Section 202 - Supportive Housing for the Elderly Mortgage Financing– Assistance Listing No. 14.157 Recommendation: We recommend the funds over the FDIC limit be collateralized or insured, or invested at a bank with an approved HUD accepted rating. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will monitor funds held at Busey closely and exercise one of the following two options mentioned above. Name(s) of the contact person(s) responsible for corrective action: Jeff Cottingham, Property Manager Planned completion date for corrective action plan: 2026

View Audit 399220

Finding 1208241 (2025-001)

Material Weakness 2025

Mapleton Local School Disitrct

OH

Equipment & Real Property Management

Mapleton Local Schools will make contact with all private schools in which a Mapleton resident is enrolled regarding funding for Title I services. This will be completed no later than September 1st of each school year by either Scott Smith, Superintendent or Skip Fulton, Federal Programs Coordinator...

Mapleton Local Schools will make contact with all private schools in which a Mapleton resident is enrolled regarding funding for Title I services. This will be completed no later than September 1st of each school year by either Scott Smith, Superintendent or Skip Fulton, Federal Programs Coordinator.

View Audit 399213

Finding 1208240 (2025-002)

Material Weakness 2025

Town of Preston

CT

Procurement, Suspension & Debarment Subrecipient Monitoring

Finding 2025-002 – Significant Deficiency in internal control over major programs Description of Finding: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, (Uniform Guidance) requires compliance with provisions of procurement, suspension,...

Finding 2025-002 – Significant Deficiency in internal control over major programs Description of Finding: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, (Uniform Guidance) requires compliance with provisions of procurement, suspension, and debarment. Non-federal entities are required to ensure that they do not award contracts or make subawards to any parties that are suspended or debarred from receiving federal funds. This verification may be accomplished by checking the System for Award Management (SAM). 2 The Town did not have a process in place to check that vendors were not suspended or debarred by checking the System for Award Management (SAM) prior to entering into contracts. Statement of Concurrence or Nonconcurrence: The Town agrees with the audit finding. Corrective Action: The Town became aware of this policy during the fiscal year 2024 audit process. This process has been remedied. Name of Contact Person: Cynthia Varricchio, MBA, Director of Finance and School Business Operations. Projected Completion Date: June 30, 2026.

View Audit 399212

Finding 1208237 (2025-001)

Material Weakness 2025

Tomball Pines, Inc.

TX

HUD Housing Programs

Audit Finding 2025-001: Per the HUD management fee schedule for owners and agents, the basic rate for management fees is $50 per unit per month (pupm). The Project qualifies for add-on fees of $8 pupm for having 16 to 30 units in property and $3 pupm for being a Sec 811 property with the total cap o...

Audit Finding 2025-001: Per the HUD management fee schedule for owners and agents, the basic rate for management fees is $50 per unit per month (pupm). The Project qualifies for add-on fees of $8 pupm for having 16 to 30 units in property and $3 pupm for being a Sec 811 property with the total cap of management fees at $61 pupm. - Management fees for the year ended December 31, 2025 were paid in excess of the monthly pupm cap. Response: Management miscalculated the management fees for the year ended December 31, 2025, and hence, fees were paid in excess of the cap by $4,183. The excess fees were paid back to the Project on March 20, 2026. - Name and Title of contact person responsible for corrective action: Steve Colella, Making a Difference in Property Management, LLC, Management Agent - 6800 Park Ten Blvd, Ste 184-W, San Antonio, TX 78213

View Audit 399188

Finding 1208236 (2025-001)

Material Weakness 2025

Kittitas County Health Network

WA

Subrecipient Monitoring § 200.332

2025-001 Subrecipient Monitoring Corrective action planned: Management will develop and implement written subrecipient monitoring policies and procedures. These procedures define required monitoring activities, including subrecipient risk assessments, financial and programmatic report reviews, audit...

2025-001 Subrecipient Monitoring Corrective action planned: Management will develop and implement written subrecipient monitoring policies and procedures. These procedures define required monitoring activities, including subrecipient risk assessments, financial and programmatic report reviews, audit review requirements, and follow-up on identified issues. Management will implement a standardized annual risk assessment process for all subrecipients. Risk assessments are completed prior to issuing new subawards and annually for ongoing subawards to determine the appropriate level of monitoring. Management will implement standardized monitoring tools, including financial and programmatic review checklists and site visit templates when applicable. Monitoring activities are now performed based on subrecipient risk level and documented in accordance with established procedures. Anticipated completion date: June 2026 Contact person responsible for corrective action: Mitchell Rhodes, Executive Director

View Audit 399183

Finding 1208235 (2025-003)

Material Weakness 2025

Palo Duro II Inc.

OK

Special Tests & Provisions HUD Housing Programs Significant Deficiency

Views of Responsible Officials and Planned Corrective Actions: Management Response: Management concurs with the finding. The hazard insurance policy for the project property was in force; however, due to an administrative oversight during policy renewal, the required standard mortgagee clause identi...

Views of Responsible Officials and Planned Corrective Actions: Management Response: Management concurs with the finding. The hazard insurance policy for the project property was in force; however, due to an administrative oversight during policy renewal, the required standard mortgagee clause identifying the U.S. Department of Housing and Urban Development (HUD) as mortgagee/loss payee was not reflected in the insurance documentation maintained on file. Corrective Action Plan: Management will work with the insurance broker to obtain the required endorsement naming the U.S. Department of Housing and Urban Development (HUD) as mortgagee/loss payee and will implement a review process to ensure required endorsements are verified upon future policy renewals. Responsible Official: Stacey Ninness, President/CEO Anticipated Completion Date: Management anticipates the policy endorsement will be completed within 60 days of the audit report date.

View Audit 399180

Finding 1208234 (2025-002)

Material Weakness 2025

Palo Duro II Inc.

OK

HUD Housing Programs Special Tests & Provisions

Views of Responsible Officials and Planned Corrective Actions: Management Response: Management concurs with the finding. Management determined that the noncompliance resulted from insufficient internal controls and monitoring procedures related to HUD-specific banking and cash management requirement...

Views of Responsible Officials and Planned Corrective Actions: Management Response: Management concurs with the finding. Management determined that the noncompliance resulted from insufficient internal controls and monitoring procedures related to HUD-specific banking and cash management requirements. Specifically, formal controls were not in place to ensure required account characteristics were reviewed and confirmed at account setup. Corrective Action Plan: Management will transition the project funds account to a compliant, interest-bearing account in accordance with HUD requirements. Management will also implement procedures to ensure that Section 811 revenues are deposited only into compliant accounts going forward. Responsible Official: Kimberly Burt, Chief Financial Officer Anticipated Completion Date: Management anticipates the bank account transition will be completed within 60 days of the audit report date.

View Audit 399180

Finding 1208233 (2025-001)

Material Weakness 2025

Palo Duro II Inc.

OK

HUD Housing Programs Internal Control / Segregation of Duties Material Weakness § 200.512

Views of Responsible Officials and Planned Corrective Actions: Management Response: Management concurs with the finding. In prior years, the Single Audit Reporting Package was not submitted to the Federal Audit Clearinghouse due to an internal misunderstanding of management’s responsibility for subm...

Views of Responsible Officials and Planned Corrective Actions: Management Response: Management concurs with the finding. In prior years, the Single Audit Reporting Package was not submitted to the Federal Audit Clearinghouse due to an internal misunderstanding of management’s responsibility for submission. With the engagement of a new audit firm, management has clarified these responsibilities. Corrective Action Plan: Management will formally designate responsibility for the timely submission of the Single Audit Reporting Package to a specific member of the finance department. In addition, management will implement a review process to confirm submission and receipt acknowledgment from the Federal Audit Clearinghouse. Responsible Official: Kimberly Burt, Chief Financial Officer Anticipated Completion Date: Management anticipates the filing will be completed within 30 days of the audit report date.

View Audit 399180

Finding 1208232 (2025-003)

Material Weakness 2025

Youth & Shelter Services, INC

IA

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

Coronavirus State and Local Fiscal Recovery Funds – Assistance Listing No. 21.027 Recommendation: The Organization should ensure proper review and approval over expenditures. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to ...

Coronavirus State and Local Fiscal Recovery Funds – Assistance Listing No. 21.027 Recommendation: The Organization should ensure proper review and approval over expenditures. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: YSS engaged a project manager in September 2023 to provide oversight on the two major construction projects taking place, Rooftop Gardens and Ember Campus. The project manager reviews the work being performed to ensure alignment with the progress billing on the monthly AIA pay applications. The project manager submits the invoice for approval to the CFO who, with the CEO, approves payment and the invoice is sent YSS accounts payable to processes payment. Name of the contact person responsible for corrective action: Danielle Fineran Planned completion date for corrective action plan: June 30, 2026

View Audit 399177

Finding 1208230 (2025-003)

Material Weakness 2025

Leap Charities, Inc.

ID

Eligibility

PRIOR TO THE COMPLETION OF THE AUDIT, ALL CERTIFICATIONS WERE COMPLETED AND NO ISSUES FOUND IN THE SUBSEQUENTLY COMPLETED LATE RECERTIFICATIONS. WE HAVE INSPECTED FILES AND VERIFIED THAT ANNUAL INCOME RECERTIFICATIONS HAVE BEEN COMPLETED FOR HTF, HOME AND NSP PROPERTIES EXCLUSIVELY OWNED BY LEAP CHA...

PRIOR TO THE COMPLETION OF THE AUDIT, ALL CERTIFICATIONS WERE COMPLETED AND NO ISSUES FOUND IN THE SUBSEQUENTLY COMPLETED LATE RECERTIFICATIONS. WE HAVE INSPECTED FILES AND VERIFIED THAT ANNUAL INCOME RECERTIFICATIONS HAVE BEEN COMPLETED FOR HTF, HOME AND NSP PROPERTIES EXCLUSIVELY OWNED BY LEAP CHARITIES, INC. MANAGEMENT HAS TAKEN CORRECTIVE ACTIONS TO CREATE QUALITY ASSURANCE CHECKPOINTS THAT REDUCE THE LIKELIHOOD OF LATE RECERTIFICATIONS OF INCOME IN THE FUTURE. SPECIFIC INTERVENTIONS ALREADY IMPLEMENTED INCLUDE THE USE OF PROPERTY MANAGEMENT SOFTWARE THAT PROVIDES AUTOMATIC REMINDERS RELATED TO INCOME COMPLIANCE REQUIREMENTS, STAFF TRAINING, AND INTERNAL COMPLIANCE DEPARTMENT REVIEWS. MANAGEMENT IS ADDITIONALLY SEEKING EXTERNAL COMPLIANCE REVIEWS. WE HAVE COMPLETED ALL RECERTIFICATIONS AS OF FEBRUARY 20, 2026. WE HAVE COMPLETED IMPLEMENTATION OF NEW SOFTWARE THAT PROVIDES REMINDERS FOR COMPLIANCE DEADLINES PER INDIVIDUAL HOMEOWNER. INTERNAL COMPLIANCE DEPARTMENT REVIEWS WERE IMPLEMENTED STARTING IN MARCH 2026. WE EXPECT ADDITIONAL STAFF TRAINING TO OCCUR BY APRIL 30, 2026. WE EXPECT TO ENGAGE AN EXTERNAL COMPLIANCE REVIEW ORGANIZATION BY JUNE 2026.

View Audit 399175

Finding 1208228 (2025-001)

Material Weakness 2025

Robertsville Apartments, Inc.

TN

HUD Housing Programs

Management will request a rent increase when the property is eligible and budget for monthly tax and escrow deposits to prevent future shortfalls in escrow cash.

View Audit 399172

Finding 1208227 (2025-001)

Material Weakness 2025

Clinch River Apartments, Inc.

TN

HUD Housing Programs

Corrective Action Plan: Management will request a rent increase when the property is eligible and budget for monthly tax and escrow deposits to prevent future shortfalls in escrow cash.

View Audit 399170

Finding 1208226 (2025-002)

Material Weakness 2025

North Central Family Medicine

AL

Procurement, Suspension & Debarment § 200.320

Management concurs with the finding. Dir of Finance will take responsibility for ensuring adherence to follow all procurement policies and procedures. In addition, the VP of Finance will perform an Inservice to all key stakeholders within the facility under all procurement policies and procedures. T...

Management concurs with the finding. Dir of Finance will take responsibility for ensuring adherence to follow all procurement policies and procedures. In addition, the VP of Finance will perform an Inservice to all key stakeholders within the facility under all procurement policies and procedures. The Dir of Finance is leading targeted training initiatives for finance staff and relevant personnel on the revised policy and procedures to ensure proper application. Quarterly we will review all purchases to ensure compliance with policies and procedures. These processes will be supervised by the VP of Finance/Director of Finance and were completed in February 2026.

View Audit 399166

Finding 1208215 (2025-001)

Material Weakness 2025

Valentine Good Samaritan Hsg Dba Prairie Estates 103-Ee015

CA

HUD Housing Programs

Management will make the delinquent deposit to the replacement reserve of $1,800 and establish transfers for the monthly deposit amount.

View Audit 399147

Finding 1208213 (2025-001)

Material Weakness 2025

Sioux Falls Good Samaritan Hsg Dba Crescent Villa Apts 091-Ee002

CA

HUD Housing Programs

Management will deposit the $5,139 shortfall and ensure future deposits are made in a timely manner.

View Audit 399146

Finding 1208212 (2025-001)

Material Weakness 2025

New Brittany Housing Foundation

CA

Cash Management HUD Housing Programs

The delay in the deposit was an oversight. The deposit has been made. Management will review the surplus cash calculation and ensure any required deposits are made within 90 days of year end.

View Audit 399143

Finding 1208211 (2025-001)

Material Weakness 2025

Casa Community Association

CA

HUD Housing Programs

Management will deposit the $15,800 shortfall and ensure future deposits are made in a timely manner.

View Audit 399129

Finding 1208210 (2025-001)

Material Weakness 2025

Midland Area Agency on Aging

IL

Internal Control / Segregation of Duties

Finding 2025 – 001 Audit Journal Entries Condition: During audit fieldwork, our testing resulted in audit adjustments in order to present materially accurate financial statements on grant activities. Criteria: A good system of internal controls would provide for accurate recording of adjusted grant ...

Finding 2025 – 001 Audit Journal Entries Condition: During audit fieldwork, our testing resulted in audit adjustments in order to present materially accurate financial statements on grant activities. Criteria: A good system of internal controls would provide for accurate recording of adjusted grant receivables and revenues for all Organization grant accounts prior to audit fieldwork. Cause: Year-end entries related to grant receivables and revenues were required in order to accurately present the Organization’s financial statements. Effect: The Organization’s financial statements were not fully adjusted prior to audit fieldwork. Recommendation: A vital process of effective internal controls is the review and subsequent adjustment of all general ledger balances, including grant activity. This review and adjustment will aid in the appropriate budgeting and management of the Organization’s financial activities and resources related to grant programs. Corrective Action Plan: The Fiscal Manager, along with staff, will review year-end adjustments as part of the audit preparation process and work to reduce the number of entries proposed by the auditors and prepare fully adjusted financial statements prior to audit fieldwork.

View Audit 399126

Corrective Action Plans

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