Corrective Action Plans

Finding 1238353 (2025-002)

Material Weakness 2025

Open Cities Health Center, Inc. and Affiliate

MN

Allowable Costs / Cost Principles

Finding 2025-002: Compliance Requirement: Allowable Cost/Cost Principles Material Weakness Assistance Living Number 93.224 Community Health Centers Grant Award Number H80CS00112 US Department of Health and Human Services Condition: A walkthrough of fourteen individuals was performed to review person...

Finding 2025-002: Compliance Requirement: Allowable Cost/Cost Principles Material Weakness Assistance Living Number 93.224 Community Health Centers Grant Award Number H80CS00112 US Department of Health and Human Services Condition: A walkthrough of fourteen individuals was performed to review personnel files and payroll related to salary for the Organization. Of the fourteen files reviewed, one file did not contain a signed I-9 Form, and one was missing application/resume. Also, there was no time sheet provided to support the time charged to the federal grant for two of the fourteen individuals tested. Action Planned in Response to the Finding: The action plan for the first two conditions are addressed in Finding 2025-001. The condition of the missing time sheet occurred on a timesheet that was completed before the committed 2024 audit finding corrective action completion date of December 2025 which was an issue for salaried employees, many of whom are not claimed for HRSA personnel support. In the current timecard approval process, actual hours are reported for all employees as appropriate. Official Responsible for Ensuring the CAP: Marilyn Powers-Campbell Planned Completion Date: December 2025

View Audit 413186

Finding 1238350 (2025-004)

Material Weakness 2025

Affordable Housing Developers, Inc.

ND

Special Tests & Provisions Matching / Level of Effort / Earmarking

Special Tests and Provisions: Debt Service Reserve Requirements Criteria The USDA requires AHDI to establish a debt service reserve account and deposit a minimum amount annually until the required reserve balance for the specific USDA loan is met. These funds are restricted for the purpose of ensuri...

Special Tests and Provisions: Debt Service Reserve Requirements Criteria The USDA requires AHDI to establish a debt service reserve account and deposit a minimum amount annually until the required reserve balance for the specific USDA loan is met. These funds are restricted for the purpose of ensuring timely debt repayment and emergency repairs. Condition During our audit procedures, we noted that one restricted debt service reserve account was underfunded by $497 as of the fiscal year-end. Cause AHDI failed to adjust its monthly transfer accordingly to the annual reserve requirement increase. This resulted in an annual net contribution below the required threshold for the year. Effect AHDI was in technical non-compliance with its loan covenants with the USDA Rural Development office. Questioned Costs None. Recommendation We recommend that management review monthly transfers calculation to ensure that the monthly transfers will meet the annual required contribution. Views of Responsible Officials Management agrees with the finding and is aware it will continue to remain a finding.

View Audit 413185

Finding 1238349 (2025-005)

Material Weakness 2025

Softwood Export Council

OR

Procurement, Suspension & Debarment § 200.14

2025-005 – Finding: Material Weakness in Internal Controls over Compliance and Noncompliance: Procurement, Suspension, and Debarment Responsible official: Rose Braden, President Context and Cause: SEC’s current procedures and policies did not include a review of contractors for debarment. Recommenda...

2025-005 – Finding: Material Weakness in Internal Controls over Compliance and Noncompliance: Procurement, Suspension, and Debarment Responsible official: Rose Braden, President Context and Cause: SEC’s current procedures and policies did not include a review of contractors for debarment. Recommendation: Management should establish, document, and implement procedures requiring that contractors be reviewed for debarment as part of the contract approval process. Corrective Action Planned: SEC will update processes and policies. A documented review for debarment will be added to contractor review procedures. Implementation date: December 31, 2026

View Audit 413184

Finding 1238347 (2025-004)

Material Weakness 2025

Softwood Export Council

OR

Cash Management § 200.302 § 200.303

2025-004 – Finding: Material Weakness in Internal Controls over Compliance: Cash Management Responsible official: Rose Braden, President Context and Cause: SEC did not document a separate review of cash draws by someone other than the party preparing and recording them. Recommendation: Management sh...

2025-004 – Finding: Material Weakness in Internal Controls over Compliance: Cash Management Responsible official: Rose Braden, President Context and Cause: SEC did not document a separate review of cash draws by someone other than the party preparing and recording them. Recommendation: Management should establish and implement procedures requiring cash draws to be reviewed and approved by an authorized individual, independent of the cash draw preparation function. The review should be documented. Corrective Action Planned: SEC will update processes and policies. A documented review process will be added to the cash draw process. Implementation date: December 31, 2026

View Audit 413184

Finding 1238345 (2025-003)

Material Weakness 2025

Softwood Export Council

OR

Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.302 § 200.303

2025-003 – Finding: Material Weakness in Internal Controls over Compliance: Allowable Costs and Allowable Activities Responsible official: Rose Braden, President Context and Cause: SEC did not document a separate review of allowable costs and allowable activities for disbursements by someone other t...

2025-003 – Finding: Material Weakness in Internal Controls over Compliance: Allowable Costs and Allowable Activities Responsible official: Rose Braden, President Context and Cause: SEC did not document a separate review of allowable costs and allowable activities for disbursements by someone other than the recording accountant. Recommendation: Management should establish and implement procedures requiring invoices to be reviewed and approved by an authorized individual, independent of the recording function, with knowledge of the requirements of the program. The review should be documented. Corrective Action Planned: SEC will update processes and policies. A documented review process will be added to the disbursement process. Implementation date: December 31, 2026

View Audit 413184

Finding 1238343 (2025-002)

Material Weakness 2025

Softwood Export Council

OR

Internal Control / Segregation of Duties Material Weakness § 200.303

2025-002 – Finding: Material Weakness in Internal Controls over Compliance and Noncompliance: Documented Policies Responsible official: Rose Braden, President Context and Cause: SEC has a documented fiscal policy; however, the policy does not include procedures that cover specific compliance attribu...

2025-002 – Finding: Material Weakness in Internal Controls over Compliance and Noncompliance: Documented Policies Responsible official: Rose Braden, President Context and Cause: SEC has a documented fiscal policy; however, the policy does not include procedures that cover specific compliance attributes associated with federal award requirements. 2 CFR 200.303 requires the recipient to establish, document, and maintain effective internal control over federal awards. Recommendation: It was recommended that SEC develop, document, and implement policies and procedures that address the recent guidance regarding applicable federal compliance requirements. Corrective Action SEC will update processes and policies. A review process will be added to the monthly closing process. Segregation of duties will be added over transaction cycles. Implementation date: December 31, 2026

View Audit 413184

Finding 1238340 (2025-003)

Material Weakness 2025

Bronx Community Health Network, Inc.

NY

Reporting Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

Bronx Community Health Network, Inc. (“BCHN”) Corrective Action Plan For the Year Ended December 31, 2025 Health Resources and Services Administration (“HRSA”) Federal Award Finding Finding 2025-003 – Reporting Description of Finding: There was no evidence of the review and approval of the Uniform D...

Bronx Community Health Network, Inc. (“BCHN”) Corrective Action Plan For the Year Ended December 31, 2025 Health Resources and Services Administration (“HRSA”) Federal Award Finding Finding 2025-003 – Reporting Description of Finding: There was no evidence of the review and approval of the Uniform Data System (UDS) before its submission. Statement of Concurrence: We concur with the finding above. Corrective Action: Management has implemented a formal UDS review and approval process requiring management review and documented approval by the designated responsible official prior to submission. In this process, the CFO will email the draft UDS report to the CEO for review. Once the UDS is reviewed, the CEO will email the CFO approving the UDS report. Then the CFO will submit the report. Evidence of the review and approval will be maintained and retained with the final UDS submission documentation to ensure accuracy, completeness, and compliance with reporting requirements. Completion Date: 09/10/2026 Name of Contact Person: Alicia Tenny Chief Financial Officer Tel. No.: (917) 364-1156 E-mail: atenny@bchnhealth.org If HRSA has questions regarding this Corrective Action Plan, please call Alicia Tenny at (917) 364-1156. Sincerely yours, _________________________ Alicia Tenny Chief Financial Officer

View Audit 413181

Finding 1238339 (2025-002)

Material Weakness 2025

Bronx Community Health Network, Inc.

NY

Procurement, Suspension & Debarment § 200.214

Bronx Community Health Network, Inc. (“BCHN”) Corrective Action Plan For the Year Ended December 31, 2025 Health Resources and Services Administration (“HRSA”) Federal Award Finding Finding 2025-002 – Procurement and Suspension and Debarment Description of Finding: BCHN did not perform a check at th...

Bronx Community Health Network, Inc. (“BCHN”) Corrective Action Plan For the Year Ended December 31, 2025 Health Resources and Services Administration (“HRSA”) Federal Award Finding Finding 2025-002 – Procurement and Suspension and Debarment Description of Finding: BCHN did not perform a check at the System for Award Management Exclusions (sam.gov) to verify whether a vendor had been suspended or debarred before being hired. Statement of Concurrence: We concur with the finding above. Corrective Action: The vendor that was selected during the audit was hired in March of 2025. Since that time, BCHN has implemented a process by which all new employees and new vendors are added to the Exclusion Screening LLC database. We engaged Exclusion screening LLC because they check for exclusion and debarment on the OIG, SAM and state exclusion lists monthly, once entered in the system. This process ensures that all new vendors or employees are screened upon hire and are then automatically screened going forward. Completion Date: January 2026 Name of Contact Person: Alicia Tenny Chief Financial Officer Tel. No.: (917) 364-1156 E-mail: atenny@bchnhealth.org If HRSA has questions regarding this Corrective Action Plan, please call Alicia Tenny at (917) 364-1156. Sincerely yours, _________________________ Alicia Tenny Chief Financial Officer

View Audit 413181

Finding 1238336 (2025-002)

Material Weakness 2025

The Scintillon Institute

CA

Cash Management

2025-002: Cash Management – Research and Development Cluster Condition Funds were drawn down by the Institute in excess of the three-day period recommended by its funding agency, and did not minimize the time elapsing between the transfers of funds from the grantor to the issue of payment by the rec...

2025-002: Cash Management – Research and Development Cluster Condition Funds were drawn down by the Institute in excess of the three-day period recommended by its funding agency, and did not minimize the time elapsing between the transfers of funds from the grantor to the issue of payment by the recipient during the year ended December 31, 2025. Criteria Cash management under 2 CFR 215.22 states that payment methods shall minimize the time elapsing between the transfers of funds from the grantor to the issue of payment by the recipient. Cause The Institute’s preparation and review procedures over the draw-down of funds were insufficient to minimize the time elapsing between the transfers of funds from the grantor to the issue of payments by the Institute. Effect The Institute was not in compliance with the cash management compliance requirements stated in 2 CFR 215.22 during the year. Recommendation The Institute should improve policies and procedures regarding cash management. This should include the procedure for calculating the allowable cash draw for actual immediate cash needs for expenses to be paid within the three-day period, in order to minimize the time elapsing between the transfer of funds from the grantor to the issue of payment by the recipient to cover operating cash flow needs. Management Response Management acknowledges the finding and the management staff of the Institute take seriously the federal compliance requirements that apply to drawing funds from the DHHS Payment Management System. The Institute recognizes that it has drawn down excess funds. The Institute plans to improve policies and procedures for cash management in 2026 that will ensure the calculation for allowable cash draw for actual immediate cash needs is complete and accurate. Action Taken Scintillon plans to improve policies and procedures for cash management in 2026 that will ensure the calculation for allowable cash draw for actual immediate cash needs is complete and accurate.

View Audit 413180

Finding 1238319 (2025-001)

Material Weakness 2025

The Scintillon Institute

CA

Allowable Costs / Cost Principles Cash Management § 200.1 § 200.305 § 200.413 § 200.414

2025-001: Cash Management: Federal Funds Drawn Down for Indirect Costs not yet Liquidated – Research and Development Cluster Condition During testing of cash management and indirect cost allocations, it was noted that approximately $900,000 in costs included in the Institute's indirect cost pool rem...

2025-001: Cash Management: Federal Funds Drawn Down for Indirect Costs not yet Liquidated – Research and Development Cluster Condition During testing of cash management and indirect cost allocations, it was noted that approximately $900,000 in costs included in the Institute's indirect cost pool remained recorded in accounts payable and had not been disbursed (liquidated) as of December 31, 2025. Despite these costs not yet being paid, the related federal funds had already been drawn down from the awarding agency. Criteria 2 CFR 200.305(b) requires non-federal entities operating under the advance payment method to minimize the time elapsing between the drawdown of federal funds and the disbursement of those funds for program purposes, and to limit draws to amounts needed for immediate cash requirements. Costs recorded in accounts payable but not yet paid do not represent a disbursement and therefore do not constitute an immediate cash need sufficient to support a drawdown. Additionally, 2 CFR 200.1 and 2 CFR 200.413/200.414 contemplate that costs included in the indirect cost pool and allocated to federal awards should reflect costs that are allowable, allocable, and appropriately recognized in the period in which they are incurred and settled in accordance with the Institute's established accounting practices and cash management controls. Cause The Institute's process for requesting federal drawdowns is based on costs recorded on an accrual basis (i.e., invoices entered into accounts payable and included in the indirect cost pool) rather than on the actual disbursement date. As a result, drawdown requests were not reconciled to actual cash outlays, allowing draws to occur before the related liabilities were paid. Effect The Institute drew down federal cash in advance of its immediate cash needs, resulting in excess federal funds on hand for a period during which $900,000 in related costs remained unpaid. This condition represents a noncompliance with federal cash management requirements and may expose the Institute to: • Liability for interest owed to the federal government under the Cash Management Improvement Act (CMIA) for the period the funds were held prior to disbursement; • Questioned costs to the extent the $900,000 was allocated through the indirect cost rate prior to liquidation; and • A control deficiency in the reconciliation between the accounts payable subledger, indirect cost pool, and cash drawdown requests. Recommendation We recommend that the Institute: 1. Revise its drawdown procedures so that federal cash requests are tied to actual disbursement dates rather than accrual/invoice entry into accounts payable; 2. Implement a monthly reconciliation between drawdown requests, the accounts payable aging report, and amounts included in the indirect cost pool; 3. Evaluate whether the $900,000 should be removed from the indirect cost pool for the affected period until liquidated, and adjust the indirect cost rate calculation accordingly if required; 4. Calculate potential interest liability under CMIA for the period excess federal cash was held and remit if applicable; and 5. Document and implement written cash management policies and procedures addressing the timing of drawdowns relative to disbursement. Management Response Management acknowledges the finding and the management staff of the Institute take seriously the federal compliance requirements that apply to drawing funds from the DHHS Payment Management System. The Institute recognizes that it has drawn down excess funds. The Institute plans to improve policies and procedures for cash management in 2026 that will ensure the calculation for allowable cash draw for actual immediate cash needs is complete and accurate. Action Taken Scintillon plans to improve policies and procedures for cash management in 2026 that will ensure the calculation for allowable cash draw for actual immediate cash needs is complete and accurate.

View Audit 413180

Finding 1238301 (2025-001)

Material Weakness 2025

Hands of Healing Residential Treatment Center, Inc.

TX

Reporting Internal Control / Segregation of Duties

Management understands that annual performance reports are required to be submitted no later than 90 days after the end of each budget period. Management understands that final performance reports are required to be submitted no later than 90 days after the end of the project period. To ensure compl...

Management understands that annual performance reports are required to be submitted no later than 90 days after the end of each budget period. Management understands that final performance reports are required to be submitted no later than 90 days after the end of the project period. To ensure compliance, , management will delegate oversight responsibilities for completion of all PRPs to the Chief Financial Officer (CFO). The CFO will be responsible for reading the Notice of Awards and calendaring out all PRP due dates and ensure timely completion by program staff. Contact Person Responsible for Corrective Action: Mr. Victor Weetly, President. Anticipated Completion Date: The corrective action plan will be completed by September 30, 2026.

View Audit 413174

Finding 1238300 (2025-002)

Material Weakness 2025

Marquette County

WI

Internal Control / Segregation of Duties

Finding 2025-002 Repeat of Finding 2024-002 Program Federal Assistance Listing and Title: 93.778 Medicaid Cluster Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: Wisconsin Department of Health Services Award Numbers: 62, 284, 878, 560152, 560155 Criteria: The State ...

Finding 2025-002 Repeat of Finding 2024-002 Program Federal Assistance Listing and Title: 93.778 Medicaid Cluster Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: Wisconsin Department of Health Services Award Numbers: 62, 284, 878, 560152, 560155 Criteria: The State Single Audit Guidelines (SSAG) require that local entities receiving State awards establish and maintain internal control designed to reasonably ensure compliance with laws, regulations and program compliance requirements. The Uniform Guidance and State Single Audit Guidelines further require auditors to obtain an understanding of the local entity's internal control over federal and state programs. To minimize the risk of errors, internal controls should be in place for all program compliance requirements, including the preparation and submission of reports, which should be reviewed and approved by a responsible party other than the original preparer. Condition/Context: The County does not have controls in place to ensure there is documentation of the approval/review of reports prior to submission. The annual WIMCR report tested did not have documentation of approval. The sample was not statistically valid. Corrective Action Plan Corrective Action Planned: The county is reviewing and updating its internal controls to put processes in place to ensure documentation of the review process prior to submittal of reports. Name(s) of Contact Person(s) Responsible for Corrective Action: Mandy Stanley and Jennifer Vote. Anticipated Completion Date: Beginning with reports dated 1/1/2026 and later.

View Audit 413169

Finding 1238299 (2025-004)

Material Weakness 2025

Marquette County

WI

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

Finding 2025-004 Repeat of Finding 2024-004 Program Federal Assistance Listing and Title: 93.778 Medicaid Cluster Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: 62, 284, 878, 560152, 560155 State Program ID Number and Title: 437.3561/3681 CW Children and Families S...

Finding 2025-004 Repeat of Finding 2024-004 Program Federal Assistance Listing and Title: 93.778 Medicaid Cluster Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: 62, 284, 878, 560152, 560155 State Program ID Number and Title: 437.3561/3681 CW Children and Families State Agency: Wisconsin Department of Children and Families State Program ID Number and Title: 435.560100 ADRC 435.000561/000681 Basic County Allocation State Agency: Wisconsin Department of Health Services State Program ID Number and Title: 395.168 Specialized Transit County Operating Aids (Elderly & Disabled) State Agency: Wisconsin Department of Transportation State Program ID Number and Title: 435.000283 IMAA State Share State Agency: Wisconsin Department of Health Services Award Numbers: Unknown Criteria: 2 CRF 200.303 Internal Controls requires that non-federal entities receiving federal awards establish and maintain internal control designed to reasonably ensure compliance with federal laws, regulations and program compliance requirements. The State Single Audit Guidelines (SSAG) require that local entities receiving State awards establish and maintain internal control designed to reasonably ensure compliance with laws, regulations and program compliance requirements. To minimize the risk of errors, internal controls should be in place for all program compliance requirements, including appropriate review and approval of expenditures. Condition/Context: During our testing, we were unable to view approval for the following number of payroll expenditures in each program: 93.778: 9 out of 19 expenditures tested. 435.000561/000681, 437.3561/3681: 12 out of 40 expenditures tested. 435.560100: 9 out of 19 expenditures tested. For programs 395.168 and 435.000283, these are carried over from the prior year as controls have not changed within the system. These samples were not statistically valid. Corrective Action Plan Corrective Action Planned: In response to Finding 2025-004 regarding Internal Control Over Financial Reporting, note that the County is aware that there is lack of coovnetrr iotsls y ear-end financial reporting process. The County will endeavor to evaluate the need to increase additional staff to meet the deficiencies noted in the finding. However, due to its size, the County does not feel it is cost-effective to hire the number of employees needed to complete these task in house at this point in time and will rely on an outside audit firm. Administration is aware the current payroll and financial system allows to only go back to view payroll approvals within one year. Name(s) of Contact Person(s) Responsible for Corrective Action: Ron Barger, Marquette County Administrator Anticipated Completion Date: Administration will examine the lack of internal financial reporting on a yearly ongoing basis.

View Audit 413169

Finding 1238297 (2025-005)

Material Weakness 2025

Marquette County

WI

Internal Control / Segregation of Duties Matching / Level of Effort / Earmarking

Finding 2025-005 Repeat of Finding 2024-002 Program Federal Assistance Listing and Title: 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: Wisconsin Department of Health Services Award Numbers: Unkown ...

Finding 2025-005 Repeat of Finding 2024-002 Program Federal Assistance Listing and Title: 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: Wisconsin Department of Health Services Award Numbers: Unkown Criteria: Section The Uniform Guidance requires non-federal entities receiving federal awards to establish and maintain effective internal control designed to reasonably ensure compliance with federal statutes, regulations, and the terms and conditions of the federal award. To minimize the risk of errors, internal controls should be in place for all program compliance requirements, including the preparation and submission of reports. Reports should be reviewed and approved by a responsible party other than the original preparer, with documentation maintained to evidence the review and approval. Condition/Context: The County does not have controls in place to ensure there is documentation of the approval and review of reports prior to submission. For the current year single audit, the March and August monthly GEARS reports were selected for testing. For both reports tested, the County was unable to provide documentation evidencing review and approval by an individual other than the preparer prior to submission. The sample was not statistically valid. Corrective Action Plan Corrective Action Planned: The county is reviewing and updating its internal controls to put processes in place to ensure documentation of the review process prior to submittal of reports. Name(s) of Contact Person(s) Responsible for Corrective Action: Jayme Sopha, Health Director Anticipated Completion Date: 12/31/25

View Audit 413169

Finding 1238296 (2025-001)

Material Weakness 2025

Sunray Communities, Inc.

TX

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

CORRECTIVE ACTION PLAN Name and Number of the Project: Sunray Communities, Inc. No. 112-EE003 Audit Firm: M Group, LLP Audit Period: The year ended December 31, 2025 Compliance Review A. Comments on Findings and Recommendations We concur with the findings and recommendations of our auditors regardin...

CORRECTIVE ACTION PLAN Name and Number of the Project: Sunray Communities, Inc. No. 112-EE003 Audit Firm: M Group, LLP Audit Period: The year ended December 31, 2025 Compliance Review A. Comments on Findings and Recommendations We concur with the findings and recommendations of our auditors regarding our noncompliance as cited in the accompanying Schedule of Findings and Questioned Costs. Actions Taken FINDING 2025-001: Supportive Housing for the Elderly, Assistance Listing 14.157 CORRECTIVE ACTION COMPLETED: An adjusting audit entry was made to reduce the property management fees and an accounts receivable - other from the property management company was created for the overpayment. Management will monitor the expenses to ensure in compliance with the HUD approved Form 9839. We have prepared the corrective action plan as required by the standards applicable to financial statements contained in Government Auditing Standards and by the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards. Any questions regarding the above corrective action plan should be directed to Ms. Natalie Bastien, Vice President, RPM Living.

View Audit 413165

Finding 1238295 (2025-001)

Material Weakness 2025

Ferry County

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Material Weakness

Finding ref number: 2025-001 Finding caption: The County did not have adequate internal controls and did not comply with federal wage rate requirements. Name, address, and telephone of County contact person: Ben Davies 350 E. Delaware Avenue, Suite 2 Republic, WA 99166-9747 Corrective action the aud...

Finding ref number: 2025-001 Finding caption: The County did not have adequate internal controls and did not comply with federal wage rate requirements. Name, address, and telephone of County contact person: Ben Davies 350 E. Delaware Avenue, Suite 2 Republic, WA 99166-9747 Corrective action the auditee plans to take in response to the finding: The County will strengthen internal controls to ensure compliance with federal wage rate requirements. This will include obtaining the federal certified payroll reports, as well as implementing effective monitoring processes to collect and review all weekly certified payroll reports from contractors and subcontractors. The County will provide training to ensure staff overseeing compliance with federal programs are aware of all applicable requirements. Anticipated date to complete the corrective action: 03/31/2027

View Audit 413153

Finding 1238292 (2025-003)

Material Weakness 2025

Perry County Port Authority

IN

Procurement, Suspension & Debarment § 200.303

FINDING 2025-003 Subject: National Infrastructure Investments - Suspension and Debarment Contact Person Responsible for Corrective Action: Jared Kleemann Contact Phone Number and Email Address: (812) 547-3586; jaredk@pcrailport.net Views of Responsible Officials: We concur with the finding. Descript...

FINDING 2025-003 Subject: National Infrastructure Investments - Suspension and Debarment Contact Person Responsible for Corrective Action: Jared Kleemann Contact Phone Number and Email Address: (812) 547-3586; jaredk@pcrailport.net Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The procurement policy and procedures will be updated to add checks for Suspension & Debarment before any contracts are awarded either through ensuring the required language is included in the contract or by receiving a signed certification indicating the vendor is not suspended or debarred from participation in federal awards. Anticipated Completion Date: November 25, 2026

View Audit 413149

Finding 1238291 (2025-002)

Material Weakness 2025

St. Mary's Community Services

CA

Allowable Costs / Cost Principles Procurement, Suspension & Debarment Subrecipient Monitoring § 200.303

Condition The audit identified opportunities to strengthen documentation and monitoring controls related to federal grant compliance and Uniform Guidance requirements. Corrective Action Plan Management will enhance its federal awards compliance framework by implementing formal policies, assigning re...

Condition The audit identified opportunities to strengthen documentation and monitoring controls related to federal grant compliance and Uniform Guidance requirements. Corrective Action Plan Management will enhance its federal awards compliance framework by implementing formal policies, assigning responsibilities, improving monitoring procedures, and providing staff training. Actions include: • Develop and implement a Uniform Guidance Compliance Manual. • Update procurement policies to align with Uniform Guidance requirements. • Establish written policies for cash management, allowable costs, and federal grant documentation standards. • Develop and document a formal cost allocation methodology for shared program costs. • Assign and document federal award compliance responsibilities across accounting, grants management, and program staff. • Create a grant compliance monitoring checklist and implement quarterly documented compliance reviews. • Conduct Uniform Guidance training for accounting, grants, and program personnel. Responsible Official Chief Financial Officer and Grant Manager. Anticipated Completion Date October 31, 2026.

View Audit 413145

Finding 1238290 (2025-001)

Material Weakness 2025

St. Mary's Community Services

CA

Internal Control / Segregation of Duties

Condition The audit identified deficiencies in documented financial reporting processes and internal control procedures, including policies, reconciliations, review procedures, segregation of duties, and financial close processes. Corrective Action Plan Management has strengthened financial reportin...

Condition The audit identified deficiencies in documented financial reporting processes and internal control procedures, including policies, reconciliations, review procedures, segregation of duties, and financial close processes. Corrective Action Plan Management has strengthened financial reporting controls through the development and implementation of formal policies and procedures, enhanced reconciliation processes, documented review controls, and staff training. Actions included: • Develop and implement a comprehensive Accounting Policies and Procedures Manual covering revenue recognition, receivables, accruals, advanced collections, fixed assets, journal entries, monthly close, year-end close, and financial reporting. • Establish standardized month-end and year-end close checklists, including assigned responsibilities and deadlines. • Implement a formal schedule requiring monthly reconciliation of all balance sheet accounts and document management review and approval procedures. • Develop written policies governing balance sheet reconciliations and journal entry preparation, approval, documentation, and retention. • Implement documented monthly financial statement reviews, including budget-to-actual and balance sheet variance analysis. • Develop a segregation-of-duties matrix identifying responsibilities and compensating controls. • Cross-train accounting personnel and document key financial processes to improve continuity and reduce operational risk. Responsible Official Chief Financial Officer. Completion Date June 2026.

View Audit 413145

Finding 1238289 (2025-004)

Material Weakness 2025

Geisinger Health

PA

Allowable Costs / Cost Principles Reporting Subrecipient Monitoring § 200.303 § 200.403 § 200.406

Finding: The terms and conditions for recipients of Disaster Grants - Public Assistance (Presidentially Declared Disasters) require that federal funds be used only for eligible emergency protective measures and other eligible work. Emergency work is defined as work that must be performed immediately...

Finding: The terms and conditions for recipients of Disaster Grants - Public Assistance (Presidentially Declared Disasters) require that federal funds be used only for eligible emergency protective measures and other eligible work. Emergency work is defined as work that must be performed immediately to save lives, protect public health and safety, or avert or lessen the threat of a major disaster. Status: Management agrees with the finding and the following corrective actions were taken to minimize future risks. Management will continue to monitor FEMA guidance and determinations related to COVID-19 Public Assistance funding. Management will evaluate the impact of subsequent FEMA reviews or determinations on amounts reported on the SEFA and adjust, as appropriate. Contact Person: Erin Fitzgerald, VP Chief Accounting Officer Anticipated Completion Date: Q1 2026

View Audit 413143

Finding 1238288 (2025-001)

Material Weakness 2025

Chicago Park District

IL

Subrecipient Monitoring § 200.303

Finding 2025-001: Reporting – Recordkeeping Planned Corrective Action: The Chicago Park District will implement the following strategies to improve the management of the Summer Food Service Program (SFSP).  Review and analyze audit findings with staff, Area Managers, and Administration in order to ...

Finding 2025-001: Reporting – Recordkeeping Planned Corrective Action: The Chicago Park District will implement the following strategies to improve the management of the Summer Food Service Program (SFSP).  Review and analyze audit findings with staff, Area Managers, and Administration in order to prevent findings.  Revamp the mandatory SFSP online certification in partnership with Workforce Development to provide a more interactive and engaging training experience while reinforcing essential program requirements and staff responsibilities.  Region Directors and Area Managers will be engaged to provide additional support and oversight to programming staff with SFSP data collection and timely SharePoint reporting, with an emphasis on accuracy and accountability.  To address compliance concerns, provide mandatory in-person training will to parks identified with 2025 ISBE citations. The training will focus on operational standards, ISBE expectations, common compliance issues, and the impact of citations on program operations.  Continue to train monitors to review SFSP binders, check food temperature, date of service and signature recorded on all invoices and DMC, and attendance. Ensure seasonal monitors will be onsite for the duration of meal service.  Nutrition Services will collaborate with the food vendor and ISBE to improve menu options and meal patterns, with the goal of increasing meal appeal, reducing food waste, and maintaining compliance with required meal standards.  Provide multiple in person trainings before start of the season to all field staff emphasize the importance of accuracy and details when following the Policy and Procedures of the Summer Food Service Program. Name of the Contact Person Responsible for Corrective Action: Farah Tunks, Director of Programming Meghan O’Boyle, Wellness Manager Anticipated Completion Date: September 30, 2026

View Audit 413139

Finding 1238287 (2025-003)

Material Weakness 2025

Homes First

WA

Internal Control / Segregation of Duties

Finding Three: 2025-003 Material Weakness in Internal Control; Material Noncompliance, Cash Management/Allowable Costs

View Audit 413138

Finding 1238287 (2025-003)

Material Weakness 2025

Homes First

WA

Internal Control / Segregation of Duties

Auditor’s Recommendations:

View Audit 413138

Finding 1238287 (2025-003)

Material Weakness 2025

Homes First

WA

Internal Control / Segregation of Duties

Recommended that management immediately segregate the duties of vendor setup, invoice entry, payment authorization, and bank reconciliation. If limited staffing prevents full segregation, management must implement strict compensating controls. Having a senior executive, outside of the process, indep...

Recommended that management immediately segregate the duties of vendor setup, invoice entry, payment authorization, and bank reconciliation. If limited staffing prevents full segregation, management must implement strict compensating controls. Having a senior executive, outside of the process, independently review, sign off on monthly bank reconciliations and change logs for the vendor master file.

View Audit 413138

Finding 1238287 (2025-003)

Material Weakness 2025

Homes First

WA

Internal Control / Segregation of Duties

Management Response:

View Audit 413138

Corrective Action Plans

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