Corrective Action Plans

Finding 1207133 (2025-003)

Material Weakness 2025

OH

Subrecipient Monitoring § 200.332

Finding Number: 2025-003 Planned Corrective Action: The City’s Department of Finance and Management concurs with the finding in the State and Local Fiscal Recovery Fund and will take the following actions in response: • Subrecipient monitoring will be performed by contracted CPA consultant for the o...

Finding Number: 2025-003 Planned Corrective Action: The City’s Department of Finance and Management concurs with the finding in the State and Local Fiscal Recovery Fund and will take the following actions in response: • Subrecipient monitoring will be performed by contracted CPA consultant for the one subrecipient (Heart of JOB) who showed no evidence of review of financial reports, site visits, and other oversight activity during the audit period. • Reissue written procurement policies and procedures to incorporate the aforementioned expectation and requirement; and • Although not anticipated due to the expiration of the SLFRF funding, procedures are established for any potential monitoring. Anticipated Completion Date: 11/30/2026 Responsible Contact Persons: Adam Robins, Deputy Director, Finance and Management Kali Harris, Federal Grants Coordinator

View Audit 398969

Finding 1207132 (2025-002)

Material Weakness 2025

City of Columbus, Ohio

OH

Allowable Costs / Cost Principles § 200.303 § 200.430

Finding Number: 2025-002 Planned Corrective Action: The City concurs with the finding and will take the following actions in response: • 100% Federally Funded Employees: Columbus Public Health will require all employees whose salaries are 100% funded by a single federal award to comply with 2 CFR § ...

Finding Number: 2025-002 Planned Corrective Action: The City concurs with the finding and will take the following actions in response: • 100% Federally Funded Employees: Columbus Public Health will require all employees whose salaries are 100% funded by a single federal award to comply with 2 CFR § 200.430 through after-the-fact time and effort certifications completed quarterly of the grant period. These certifications will confirm that 100% of the employee’s actual work performed was allocable to the federal award and will include both employee certification and supervisory review. They will be due 30 days following the quarterly end date. In addition, CPH will implement enhanced internal monitoring procedures, including periodic activity verification and supervisory attestation by the Fiscal Analyst, to ensure that work performed aligns with the grant’s scope and that payroll charges are accurate and properly supported;• Partially Federally Funded Employees: Employees whose salaries are allocated across multiple funding sources will follow full federal time and effort reporting requirements in accordance with 2 CFR § 200.430. These employees will complete afterthe- fact time and effort reporting reflecting the actual distribution of work performed across all cost objectives. Reported time will be supported by appropriate documentation and will not be based on budget estimates. Supervisors will review and formally sign off on reported time and effort on at least a quarterly basis to ensure accuracy, reasonableness, and alignment with actual activities. Additional internal monitoring, including periodic review and payroll-to-activity reconciliation reviewed by the Fiscal Analyst, will be conducted to ensure compliance and proper allocation of personnel costs. Anticipated Completion Date: 7/1/2026 Responsible Contact Persons: Anita Clark, Assistant Health Commissioner, Columbus Public Health Katie Pettiford, Fiscal Manager

View Audit 398969

Finding 1207129 (2025-001)

Material Weakness 2025

City of Columbus, Ohio

OH

Subrecipient Monitoring

Finding Number: 2025-001 Planned Corrective Action: The City concurs with the finding and will take the following action in response: • The Department of Finance and Management, Grants Management section, will work with the Department of Development for collection and submission of HOPWA Subrecipien...

Finding Number: 2025-001 Planned Corrective Action: The City concurs with the finding and will take the following action in response: • The Department of Finance and Management, Grants Management section, will work with the Department of Development for collection and submission of HOPWA Subrecipient information for FFATA FSRS reporting that have not been reported in SAM.gov. • Columbus Public Health (Ryan White) promptly addressed this matter and implemented corrective actions to ensure full compliance with applicable requirements. In accordance with the subaward reporting provisions of the Federal Funding Accountability and Transparency Act (FFATA), the agency has revised its vendor determination form—utilized for all contractual agreements—to incorporate the required reporting criteria. All subawards exceeding $30,000 under UT833926 have been reported in SAM.gov. Data will be entered into the corporate system no later than the month following the execution of the contract. Going forward, all qualifying subawards will be entered into SAM.gov by the Fiscal Analyst in a timely manner, and the Fiscal Manager will perform an annual review to verify compliance with FFATA reporting requirements. Anticipated Completion Date: 6/30/2026 Responsible Contact Persons: Adam Robins, Deputy Director, Finance and Management Lucie McMahon, Grants Management Coordinator, Department of Housing and Urban Development Erin Prosser, Deputy Director, Department of Development Alex Cofield, Development Program Coordinator/Compliance & Special Projects Anticipated Completion Date: 3/24/2026 Responsible Contact Persons: Anita Clark, Assistant Health Commissioner, Columbus Public Health Katie Pettiford, Fiscal Manager

View Audit 398969

Finding 1207122 (2025-006)

Material Weakness 2025

Livingston School District No. 4 & 1

MT

Subrecipient Monitoring Student Financial Aid Cash Management

FINDING 2025-006: Program Income Response: This repeat finding is related to the Districts LINKS afterschool program supported by 21st Century funding. The Office of Public Instruction (OPI) performed monitoring of Livingston schools 21st Century program in August of 2024 and determined the District...

FINDING 2025-006: Program Income Response: This repeat finding is related to the Districts LINKS afterschool program supported by 21st Century funding. The Office of Public Instruction (OPI) performed monitoring of Livingston schools 21st Century program in August of 2024 and determined the District was not in compliance with changes to federal regulations made in 2018. The District has made all recommended changes from OPI and is now in compliance with federal regulations.

View Audit 398964

Finding 1207121 (2025-005)

Material Weakness 2025

Livingston School District No. 4 & 1

MT

Special Tests & Provisions Subrecipient Monitoring Internal Control / Segregation of Duties

FINDING 2025-005: Private/Home School Communications Response: This issue was an oversight as we transitioned Curriculum Directors. Communications to private/home school students have been completed in FY26 and we will monitor compliance requirements for federal grants in the future to prevent this ...

FINDING 2025-005: Private/Home School Communications Response: This issue was an oversight as we transitioned Curriculum Directors. Communications to private/home school students have been completed in FY26 and we will monitor compliance requirements for federal grants in the future to prevent this from occurring again.

View Audit 398964

Finding 1207117 (2025-001)

Material Weakness 2025

The Pelham II Corporation

MA

HUD Housing Programs Internal Control / Segregation of Duties Procurement, Suspension & Debarment § 200.512

A. Current Findings on the Schedule of Findings, Questioned Costs and Recommendations 1. Finding 2025-001 a. Comments on Finding and Each Recommendation Management agrees with the finding and the transition of responsibilities to the new President has been further identified and understood since ste...

A. Current Findings on the Schedule of Findings, Questioned Costs and Recommendations 1. Finding 2025-001 a. Comments on Finding and Each Recommendation Management agrees with the finding and the transition of responsibilities to the new President has been further identified and understood since stepping into the role in November 2024. b. Action(s) Taken or Planned on the Finding Identification and understanding of the reporting deadlines, along with the necessary access to facilitate the transmission of data. Going forward the Data Collection Form will be prepared by the management company and reviewed and approved by the President of the Pelham Corporation prior to submission. This action has been completed during 2025. This will allow the timely submission going forward B. Status of Corrective Actions on Findings Reported in the Prior Audit Schedule of Findings, Questions Costs and Recommendations There were no open findings on the prior audit report.

View Audit 398940

Finding 1207115 (2025-002)

Material Weakness 2025

The Salvation Army/coastal Alabama Area Command

AL

Allowable Costs / Cost Principles

As noted in the audit, a changeover in payroll systems occurred during FY2025. The new system provides improved reporting capabilities that facilitate better oversight of staffing assignment percentages and should help resolve this issue moving forward. In addition, all GA Division locations are bei...

As noted in the audit, a changeover in payroll systems occurred during FY2025. The new system provides improved reporting capabilities that facilitate better oversight of staffing assignment percentages and should help resolve this issue moving forward. In addition, all GA Division locations are being directed to review staffing assignments in the payroll system to verify accuracy. Furthermore, Area Command finance staff will continue to work alongside the staff involved with the Veterans’ program to ensure compliance.

View Audit 398938

Finding 1207114 (2025-004)

Material Weakness 2025

Dolton School District 149

IL

Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management § 200.303

Condition: On May 15, 2025, ISBE communicated to the District that ARP ESSER recipients had until May 24, 2025 to liquidate obligations and that the District needed to submit its expenditure report to ISBE by May 21, 2025 for ISBE to process and submit to the U.S. Department of Education by the new ...

Condition: On May 15, 2025, ISBE communicated to the District that ARP ESSER recipients had until May 24, 2025 to liquidate obligations and that the District needed to submit its expenditure report to ISBE by May 21, 2025 for ISBE to process and submit to the U.S. Department of Education by the new deadline. On May 21, 2025, the District submitted a claim for reimbursement of expenditures totaling $4,343,814. The expenditures comprising this claim by date incurred and liquidated were as follows: $1,668,710 incurred through May 21, 2025 and liquidated as of that date $31,692 incurred through May 21, 2025 but not liquidated as of that date $325,805 incurred from May 21, 2025 through June 30, 2025 and liquidated as of June 30, 2025 $531,321 incurred from May 21, 2025 through June 30, 2025 but not liquidated as of June 30, 2025 $1,786,286 incurred after June 30, 2025 At May 21, 2025 and June 30, 2025, expenditures totaling $2,675,104 and 2,349,299, respectively, out of the $4,343,814 claimed for reimbursement were not incurred, not liquidated or both and, therefore, did not qualify for reimbursement based on the Federal statutes, regulations and the terms and conditions of the Federal award in effect at those dates. Corrective Action Plan: Management will review its policies and procedures and implement changes to strengthen internal control over compliance. Responsible Person: Dr. Maureen M. White, Superintendent Anticipated Completion Date: June 30, 2026

View Audit 398922

Finding 1207113 (2025-001)

Material Weakness 2025

Wesley Jackson Highlands, Inc. 081-Ee022

TN

Subrecipient Monitoring HUD Housing Programs

Finding #2025-001: Comments on the Finding and Each Recommendation: During the year ended December 31, 2025, the Corporation did not make the HUD required total amount of deposits to the reserve for replacements. Management should transfer $19,826 from the operating account to the reserve for replac...

Finding #2025-001: Comments on the Finding and Each Recommendation: During the year ended December 31, 2025, the Corporation did not make the HUD required total amount of deposits to the reserve for replacements. Management should transfer $19,826 from the operating account to the reserve for replacements account. Action(s) taken or planned on the finding: Management concurs with the finding and recommendation. On February 3, 2026, management transferred $20,258 from the operating account to the reserve for replacements. 35

View Audit 398917

Finding 1207111 (2025-006)

Material Weakness 2025

St. George Fire Protection District No. 2

LA

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

2025-006 – Deficiency in Internal Control over Reporting Corrective Action: The District will establish and implement written policies and procedures for the preparation, review, and submission of required reports for Federal and non-Federal grant awards. The reporting and related review requirement...

2025-006 – Deficiency in Internal Control over Reporting Corrective Action: The District will establish and implement written policies and procedures for the preparation, review, and submission of required reports for Federal and non-Federal grant awards. The reporting and related review requirements will be incorporated into the District’s policies for grant awards, including defined responsibilities and related record retention requirements. Responsible Officials: Fire Chief Gerard Tarleton Anticipated Completion Date: September 2026

View Audit 398900

Finding 1207110 (2025-005)

Material Weakness 2025

St. George Fire Protection District No. 2

LA

Allowable Costs / Cost Principles Cash Management Matching / Level of Effort / Earmarking § 200.303 § 200.305

2025-005 – Noncompliance and Deficiency in Internal Control over Cash Management Corrective Action: The District will implement a documented review and approval process for each Federal reimbursement request prior to submission, including verification of calculations, agreement to supporting documen...

2025-005 – Noncompliance and Deficiency in Internal Control over Cash Management Corrective Action: The District will implement a documented review and approval process for each Federal reimbursement request prior to submission, including verification of calculations, agreement to supporting documentation, and allowability within the reimbursement period. The reimbursement package, review documentation, and approval will be retained in accordance with the District’s records retention policy for each applicable grant award. Management will not submit reimbursement requests until the documented review is complete and any identified discrepancies are resolved. Responsible Officials: Fire Chief Gerard Tarleton Anticipated Completion Date: September 2026

View Audit 398900

Finding 1206884 (2025-001)

Material Weakness 2025

Stand Down Housing, Inc.

RI

HUD Housing Programs

FINDING 2025-001: Section 811 Capital Advance Program and Project Rental Assistance Contract ALN# 14.181 Recommendation: Management will address the shortfall in the replacement reserve by making up the missed deposits in the subsequent period alongside the normal required contributions. Action Take...

FINDING 2025-001: Section 811 Capital Advance Program and Project Rental Assistance Contract ALN# 14.181 Recommendation: Management will address the shortfall in the replacement reserve by making up the missed deposits in the subsequent period alongside the normal required contributions. Action Taken: The Organization will make the necessary required deposits to bring the balance of the reserve for replacement in alignment with requirements of Section 811 Capital Advance Program Regulatory Agreement.

View Audit 398888

Finding 1206883 (2025-001)

Material Weakness 2025

Silent Cooperative Apartments

IL

HUD Housing Programs

Recommendation: We recommend that management and those charge with governance to improve internal controls to ensure that all required lease agreements are included in tenant files. Response: As of March 2026, to prevent recurrence, management has implemented the following procedural changes: 1. The...

Recommendation: We recommend that management and those charge with governance to improve internal controls to ensure that all required lease agreements are included in tenant files. Response: As of March 2026, to prevent recurrence, management has implemented the following procedural changes: 1. The move in checklist will add a line requiring staff sign-off confirming that all executed lease documents are placed in the tenant file prior to move-in or lease renewal. 2. Property management staff will conduct monthly file reviews to verify that all move in’s required documentation, including signed lease agreements, is present and current in each tenant file. 3. The Regional Manager will conduct quarterly file audits to ensure ongoing compliance and will report findings to management.

View Audit 398883

Finding 1206882 (2025-002)

Material Weakness 2025

Southeastern Oklahoma State University

OK

Subrecipient Monitoring Cash Management Internal Control / Segregation of Duties § 200.305

Management acknowledges the finding related to cash management requirements and the timing of federal fund draws and disbursements. While the University maintains a robust, multi-layered review process, enhancements are necessary to ensure full alignment with federal requirements regarding the minim...

Management acknowledges the finding related to cash management requirements and the timing of federal fund draws and disbursements. While the University maintains a robust, multi-layered review process, enhancements are necessary to ensure full alignment with federal requirements regarding the minimization of time between the receipt and disbursement of funds. The University currently utilizes several internal controls, including: • A two-person pre-draw validation process to ensure draws align with liquidated expenses • Programmatic oversight through detailed fiscal year draw reports and reconciliation to G5 activity • Periodic fiscal year and program year reviews to identify and correct discrepancies These controls enabled the University to identify and correct the instances noted in the audit. However, management recognizes that refinements are needed to further align the timing of draws with actual cash disbursement activity. To address this, the University will implement the following corrective actions: 1. Refinement of Draw Timing – Draw requests will be more closely aligned with immediate cash needs and anticipated disbursement activity. 2. Enhanced Pre-Draw Reconciliation – In addition to existing controls, a real-time reconciliation of outstanding obligations and pending disbursements will be required prior to each draw to ensure alignment with cash needs. 3. Standardized Draw Calendar Adjustments – The University will evaluate and adjust its draw schedule, where necessary, to better align with actual disbursement cycles, including payroll and purchase card activity. 4. Formalized Monitoring and Documentation – Documentation will be maintained to support the relationship between drawdowns and disbursements, and periodic internal reviews will be conducted to ensure ongoing compliance. 5. Training and Communication – Additional guidance will be provided to program and fiscal staff regarding federal cash management requirements and expectations for timing of draws. Management believes these enhancements, in combination with existing internal controls, will ensure compliance with federal cash management requirements and prevent recurrence of this issue. Implementation Date: July 1, 2025 Responsible Party: James Altman (Director of Finance) in coordination with Darla Ellett (Trio Director) and Teriki Barnes (Trio Director)

View Audit 398877

Finding 1206872 (2025-001)

Material Weakness 2025

Southeastern Oklahoma State University

OK

Special Tests & Provisions Student Financial Aid Subrecipient Monitoring

Management acknowledges the finding related to Return of Title IV (R2T4) calculations and the timeliness of returns. The University recognizes the importance of accurate calculations and timely processing in compliance with federal regulations. The errors identified were primarily related to inaccur...

Management acknowledges the finding related to Return of Title IV (R2T4) calculations and the timeliness of returns. The University recognizes the importance of accurate calculations and timely processing in compliance with federal regulations. The errors identified were primarily related to inaccuracies in determining the total number of days in the payment period and ensuring the correct data elements were consistently applied within the student information system. While corrective actions were implemented following the prior audit, management has determined that additional controls and validation procedures are necessary to ensure consistent accuracy. To address this issue, the University has implemented and will continue to implement the following corrective actions: 1. System Configuration Review and Validation – The student information system configuration for R2T4 calculations has been reviewed and updated to ensure that academic calendars, including term dates and scheduled breaks, are accurately reflected. These configurations will be validated prior to the start of each term. 2. Enhanced Calculation Review Process – A secondary review of a sample of R2T4 calculations will be performed to verify the accuracy of key inputs, including days attended, total days in the term, and applicable aid types. 3. Standardized Procedures and Checklists – The University has developed standardized procedures to ensure consistent application of federal requirements, including proper ordering of funds and treatment of post-withdrawal disbursements. 4. Timeliness Monitoring – Processes have been enhanced to track and monitor the timing of R2T4 calculations and returns to ensure compliance with required deadlines. 5. Training and Staff Development – Financial aid staff have received additional training on R2T4 requirements, with a focus on calculation components, system inputs, and regulatory updates. 6. Ongoing Quality Assurance Reviews – Periodic internal reviews will be conducted to assess compliance and identify any discrepancies for prompt correction. Management believes these enhanced controls and monitoring procedures will address the root causes of the finding and prevent recurrence. Implementation Date: July 1, 2025 Responsible Party: Chrissie Isenberg (Director of Financial Aid)

View Audit 398877

Finding 1206866 (2025-003)

Material Weakness 2025

Alpine Achievers Initative

CO

Reporting Subrecipient Monitoring Period of Performance

Finding 2025-003: Late Submission of the Period Expense Report (PERs) Audit Finding: Alpine Achievers Initiative is required to submit Period Expense Reports (PERs) by the 10th of each month. PERs submitted later than 30 days after the performance period end date may result in denial of payment. In ...

Finding 2025-003: Late Submission of the Period Expense Report (PERs) Audit Finding: Alpine Achievers Initiative is required to submit Period Expense Reports (PERs) by the 10th of each month. PERs submitted later than 30 days after the performance period end date may result in denial of payment. In our audit, we found that 8 out of 12 PERs tested were submitted after the 10th of the following month. In addition, 1 of the 8 PERs submitted untimely, was submitted later than 30 days after the performance period end date. Audit Recommendation: We recommend Alpine Achievers Initiative review and follow policies and procedures to ensure timely submission of reports Management’s Response and Corrective Action Plan: Alpine Achievers Initiative acknowledges the finding and recommendation. Late submissions occurred due to delays on responses from the grantor. Management will be more proactive in documenting communication regarding Period Expense Reports (PERs) to ensure that, if they are submitted late, there is clear evidence of why and what date they were initially submitted. Management is now aware that the PER system only reflects the final submission date once approved, not the initial submission date. To address this, Alpine Achievers Initiative (AAI) will implement a process to document the initial submission date along with any backup documentation of delays, including communications with Serve Colorado or other relevant parties. Additionally, Serve Colorado has clarified that while timely submission of PERs is required, grantees who communicate a need for additional time by the 10th of the month are considered compliant. Serve Colorado also noted that, based on AAI’s history and previous communications, they would not consider this a finding or an indicator of poor performance. Moving forward, AAI will ensure that any anticipated delays are formally communicated to Serve Colorado before the due date and that records of these communications are retained for audit purposes. Contact and Completion Date: Megan Strauss (megan@alpineachievers.org) is the primary contact, and the Executive Director at Alpine Achievers Initiative. The correction action is expected to be resolved before the end of the next fiscal year-end of July 31, 2026. Finding 2025-001: Vendor Master File and Purchasing Hierarchy – Significant Deficiency Audit Finding: Alpine Achievers Initiative should establish and maintain a process to review their vendor master file, at least annually, to ensure the accuracy of vendor information. In addition, Alpine Achievers Initiative should create a policy to delineate purchasing authority as to allow employees to manage their programs. Alpine Achievers Initiative does not have a process in place to review their vendor master file and a policy to delineate purchasing authority. Audit Recommendation: We recommend Alpine Achievers Initiative establish and maintain a process to review their vendor master file, at least annually, and create a policy to delineate purchasing authority as to allow employees to manage their programs. Management’s Response and Corrective Action Plan: Alpine Achievers Initiative (AAI) acknowledges the audit finding regarding the need to establish and maintain a process for reviewing the vendor master file and delineating purchasing authority. AAI’s current processes do include review and approval of all expenses paid by the appropriate parties. AAI already has a plan in place to review and revise written policies with their outsourced CPA firm. We will make sure that these two items are specifically addressed so that evidence and policies align with practice. Contact and Completion Date: Megan Strauss (megan@alpineachievers.org) is the primary contact, and the Executive Director at Alpine Achievers Initiative. The correction action is expected to be resolved before the end of the next fiscal year-end of July 31, 2026.

View Audit 398869

Finding 1206856 (2025-002)

Material Weakness 2025

Casa Otonal Housing Corporation

CT

HUD Housing Programs Eligibility

Project Legal Name: Casa Otonal Housing Corporation HUD Project No.: 017-EH073 Audit Firm: CohnReznick LLP Period covered by the audit: 06/30/2025 Corrective Action Plan prepared by: Name: Sabine Cox Position: Comptroller/Director of Finance Telephone Number: (203) 230-4809 The following is a recomm...

Project Legal Name: Casa Otonal Housing Corporation HUD Project No.: 017-EH073 Audit Firm: CohnReznick LLP Period covered by the audit: 06/30/2025 Corrective Action Plan prepared by: Name: Sabine Cox Position: Comptroller/Director of Finance Telephone Number: (203) 230-4809 The following is a recommended format to be followed by the auditee for preparing a correction action plan: A. Current Findings on the Schedule of Findings, Questioned Costs and Recommendation Finding 2025-002 a. Comments on the Finding and Each Recommendation In connection with our lease file review, we noted the following deficiencies: For one out of one new tenant tested, the Project did not maintain evidence in the lease file that the Enterprise Income Verification ("EIV") system was utilized within 90 days of the tenant's initial certification date of April 1, 2025. For two out of ten existing tenants tested, the Project did not maintain evidence in the lease files that the EIV system was utilized within 120 days of the tenant's annual certification dates of August 1, 2024. For one out of one new tenant tested, the Project did not maintain evidence in the lease file that a move-in inspection was performed. b. Action(s) Taken or Planned on the Finding During the transition of a new site from a prior management company, the Property Manager, Regional Manager, and Director of Compliance must collaborate closely to conduct a thorough review of all tenant files. This coordinated effort helps ensure accuracy, identify any discrepancies early, and supports more effective and efficient use of the EIV system for tenant file testing.

View Audit 398860

Finding 1206854 (2025-002)

Material Weakness 2025

Southwest Louisiana Primary Health Care Center INC

LA

Cash Management

We agree with the finding. Management plans to implement procedures for grant funded expenditures to ensure that proper documentation supporting the funds request are available and at the time of the drawdown of grant funds.

View Audit 398858

Finding 1206853 (2025-003)

Material Weakness 2025

Southwest Louisiana Primary Health Care Center INC

LA

Management plans to implement procedures to ensure that proper sliding fee discounts are provided to patients.

View Audit 398858

Finding 1206843 (2025-001)

Material Weakness 2025

Bellevue Rotary Senior Housing Corporation

OH

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

Management concurs with the findings and auditors’ recommendations to enhance internal controls to ensure compliance with the RD requirements. Furthermore, we would like to note that the questioned costs was paid from project cash for the ultimate benefit of improving the property for the tenants. T...

Management concurs with the findings and auditors’ recommendations to enhance internal controls to ensure compliance with the RD requirements. Furthermore, we would like to note that the questioned costs was paid from project cash for the ultimate benefit of improving the property for the tenants. The substantial rehabilitation tax credit transaction planned by the owner is anticipated to start within the next fiscal year will significantly enhance the living standards and experience for the tenants. The funds used for purposes directly related to the operations of the project will be repaid with the planned closing of the Low-Income Housing tax credit transaction during fiscal year 2026 unless an approval is granted by RD for payment of the questioned costs that will ultimately benefit the tenants of Rotary Commons. Furthermore, internal controls over funds used for purposes unrelated to the Corporation are being strengthened to prevent future noncompliance.

View Audit 398848

Finding 1206842 (2025-001)

Material Weakness 2025

Okaloosa County, Florida

FL

Equipment & Real Property Management § 200.311 § 200.313

CORRECTIVE ACTION PLAN The County respectfully submits the following corrective action plan for the year ended September 30, 2025. Name and address of independent public accounting firm: Warren Averett, LLC 45 Eglin Parkway, N.E., Suite 301, Fort Walton Beach, FL 32548. The finding from the schedule...

CORRECTIVE ACTION PLAN The County respectfully submits the following corrective action plan for the year ended September 30, 2025. Name and address of independent public accounting firm: Warren Averett, LLC 45 Eglin Parkway, N.E., Suite 301, Fort Walton Beach, FL 32548. The finding from the schedule of findings and questioned costs for the year ended September 30, 2025, is discussed below. The finding is numbered consistently with the number assigned in the schedule of findings and questioned costs. Name of Contact Person for Completing Corrective Action Plan: Jane Evans, Grants and RESTORE Manager (850) 651-7521 jevans@myokaloosa.com Expected date of completion is October 1, 2026. FINDING 2025-001 – EQUIPMENT AND REAL PROPERTY MANAGEMENT Managements Response: 1. System Cleanup & Review: The Accounting Director will provide the fixed asset records to the OMB Director. The OMB Director will coordinate with relevant departments (e.g., Public Works, Facilities), to review all equipment, infrastructure, and building assets funded by federal or state awards. Missing data fields, required by 2 CFR 200.313(d) and 2 CFR 200.311 will be populated in the fixed asset records. The County is implementing a new Workday ERP system, which has an integrated fixed asset module. This module will accommodate the tracking of grant-specific information required and provide a better workflow for consistency and compliance. 2. Infrastructure Project Closeout Procedure: The County will revise the policies and closing procedures for CIP (Construction in Progress) projects. Before an asset is moved from CIP to fixed assets, the fixed asset coordinator must provide a completed "Grant-Funded Property Identification Form" detailing the funding source, FAIN (Federal Award Identification Number) or State award number, and percentage of contribution to the Finance Department. 3. Policy Re-training: The OMB Director in collaborative efforts with Finance Department will hold training sessions for all department heads and project managers to reinforce the established fixed asset tracking policy, emphasizing the compliance requirements of the Florida Single Audit Act and Uniform Guidance. 4. Ongoing Monitoring: Internal reviews of the fixed asset listing will be conducted quarterly by the Accounting Director or designee to verify that new assets are properly categorized with necessary grant details.

View Audit 398846

Finding 1206763 (2025-001)

Material Weakness 2025

Alliance for Community Empowerment, Inc.

CT

Significant Deficiency Internal Control / Segregation of Duties

Community Services Block Grant– Assistance Listing No. 93.569 Recommendation: We recommend Alliance for Community Empowerment, Inc. fill positions within the 180-day period. Action taken in response to finding: Alliance for Community Empowerment, Inc. is actively searching for individuals to fill va...

Community Services Block Grant– Assistance Listing No. 93.569 Recommendation: We recommend Alliance for Community Empowerment, Inc. fill positions within the 180-day period. Action taken in response to finding: Alliance for Community Empowerment, Inc. is actively searching for individuals to fill vacant positions and plans to have a board vote at the March meeting to fill the vacancies. Name of the contact person responsible for corrective action: Dr. Monette Ferguson, Executive Director. Planned completion date for corrective action plan: March 31, 2026

View Audit 398834

Finding 1206761 (2025-001)

Material Weakness 2025

Marietta City School District

OH

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

The District does monthly close outs and balances which total expenditures and revenues to ensure proper monthly closing procedures. During each year-end closeout, a period H file is created. The Treasurer will ensure moving forward that the totals submitted to ODEW and the District’s expenditures t...

The District does monthly close outs and balances which total expenditures and revenues to ensure proper monthly closing procedures. During each year-end closeout, a period H file is created. The Treasurer will ensure moving forward that the totals submitted to ODEW and the District’s expenditures tie out. As far as TitIe I is concerned, yearly Financial expenditure reports (FER) are filed and approved by ODEW. All (FER) in 2023, 2024 and 2025 have been submitted by District approved by ODEW.

View Audit 398824

Finding 1206757 (2025-001)

Material Weakness 2025

Vivent Health and Affiliates

WI

Allowable Costs / Cost Principles Cash Management Reporting

Corrective Action Planned: Management reviewed this instance and performed a detailed analysis of our internal controls, procedures and other like transactions. Management concluded that it was an isolated incident that occurred due to the timing and processing of the voided transaction and the tran...

Corrective Action Planned: Management reviewed this instance and performed a detailed analysis of our internal controls, procedures and other like transactions. Management concluded that it was an isolated incident that occurred due to the timing and processing of the voided transaction and the transition to a new grant year. Vivent Health has implemented additional controls including dual review of grant year-to-date expenditures and system and reporting enhancements that will identify and prevent changes related to prior periods. Specific steps taken are: 1) retrained accounts payable team on void check procedure, 2) implemented a system enhancement that does not permit a user to enter any transaction type to a prior month that has been closed (also planned for new financial system to be implemented by September 2026), 3) examined all void check transactions for any grant-related expenditures that crossed the last two fiscal years with no instance of duplicate invoicing identified, and 4) implemented dual review of running a YTD general ledger report for all grants and comparing total expenditures for the grant period versus total expenditures claimed in the prior month. Name(s) of Contact Person(s) Responsible for Corrective Action: Erin Crandall, VP Finance Anticipated Completion Date: These actions were implemented February 2026 and will be documented throughout the current fiscal year, with completion at fiscal year-end (August 31, 2026). Vivent Health is implementing a new ERP system in September 2026 and will ensure these controls are in place.

View Audit 398814

Finding 1206667 (2025-004)

Material Weakness 2025

East St Louis School District 189

IL

Subrecipient Monitoring Reporting Allowable Costs / Cost Principles § 200.302 § 200.303 § 200.344 § 200.403 § 200.405

Corrective Action Plan Finding No. 2025-004 Condition – The District submitted an expenditure report for $19,165,569 for the quarter ending March 31, 2025, which included amounts that were properly obligated but not yet expended as of the report date. The District reported $14,638,097 in ESSER funds...

Corrective Action Plan Finding No. 2025-004 Condition – The District submitted an expenditure report for $19,165,569 for the quarter ending March 31, 2025, which included amounts that were properly obligated but not yet expended as of the report date. The District reported $14,638,097 in ESSER funds on the Schedule of Expenditures of Federal Awards (SEFA), resulting in an unsupported difference of $4,527,472. Plan – The District will implement additional review processes to ensure material errors are detected and corrected. The District requested all ESSER obligated funds as of March 2025 as directed by the state. Anticipated Date of Completion: 03.06.26 Name of Contact Person: Delfaye Jason, Chief School Business Official

View Audit 398795

Corrective Action Plans

Filters