Corrective Action Plans

Finding 1186794 (2025-002)

Material Weakness 2025

Charleston County Housing and Redevelopment Authority

SC

2025-002 ALN: 14.850 – Public Housing Operating Fund – Eligibility Management acknowledged the finding and will follow the Auditor's recommendations as listed in the Schedule of Findings and Questioned Costs. Person Responsible for Correction of Finding: Ms. Angela Childers, Chief Executive Officer ...

2025-002 ALN: 14.850 – Public Housing Operating Fund – Eligibility Management acknowledged the finding and will follow the Auditor's recommendations as listed in the Schedule of Findings and Questioned Costs. Person Responsible for Correction of Finding: Ms. Angela Childers, Chief Executive Officer Projected Completion Date: March 31, 2027

View Audit 394546

Finding 1186793 (2025-006)

Material Weakness 2025

Community Schools of Frankfort

IN

FINDING 2025-006 Finding Subject: Education Stabilization Fund - Equipment and Real Property Management Federal Agency(s): _Department of Education Contact Person Responsible for Corrective Action: Scott Weltz, Denise Funston Contact Phone Number and Email Address: 765-654-5585, weltzs@frankfort.k12...

FINDING 2025-006 Finding Subject: Education Stabilization Fund - Equipment and Real Property Management Federal Agency(s): _Department of Education Contact Person Responsible for Corrective Action: Scott Weltz, Denise Funston Contact Phone Number and Email Address: 765-654-5585, weltzs@frankfort.k12.in.us, funstond@frankfort.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: While an asset inventory was completed, there was information missing for items purchased with ESSER funds. Moving forward, when the inventory is completed, it will be reviewed by both the Treasurer and any Director who monitors the funds that were used in the purchase of the items on the inventory to ensure compliance with federal and state requirements. Anticipated Completion Date: The next inventory will be completed in the summer of 2026.

View Audit 394542

Finding 1186790 (2025-005)

Material Weakness 2025

Community Schools of Frankfort

IN

FINDING 2025-005 Finding Subject: Special Education Grants to States, Special Education Pre-school grants – Activities Allowed or Unallowed and Allowable Costs/Cost Principles Contact Person Responsible for Corrective Action: Scott Weltz, Denise Funston Contact Phone Number and Email Address: 765-65...

FINDING 2025-005 Finding Subject: Special Education Grants to States, Special Education Pre-school grants – Activities Allowed or Unallowed and Allowable Costs/Cost Principles Contact Person Responsible for Corrective Action: Scott Weltz, Denise Funston Contact Phone Number and Email Address: 765-654-5585, weltzs@frankfort.k12.in.us, funstond@frankfort.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Due to turnover in the Director of Exceptional Needs position, there were expenditures made from the wrong grant cycle. A system of internal controls will be implemented to both ensure that supporting documentation is maintained and that the expenditures and reimbursements are attributed to the correct grant/fund. Anticipated Completion Date: Current and ongoing with any special education grants.

View Audit 394542

Finding 1186788 (2025-004)

Material Weakness 2025

Community Schools of Frankfort

IN

FINDING 2025-004 Finding Subject: Special Education Cluster (IDEA)- Period of Performance Contact Person Responsible for Corrective Action: Scott Weltz, Denise Funston Contact Phone Number and Email Address: 765-654-5585, weltzs@frankfort.k12.in.us, funstond@frankfort.k12.in.us Views of Responsible ...

FINDING 2025-004 Finding Subject: Special Education Cluster (IDEA)- Period of Performance Contact Person Responsible for Corrective Action: Scott Weltz, Denise Funston Contact Phone Number and Email Address: 765-654-5585, weltzs@frankfort.k12.in.us, funstond@frankfort.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Due to turnover in the Director of Exceptional Needs position, there were expenditures made, through payroll distributions, from the wrong grant cycle. Moving forward the Treasurer and the Director will work closely together to review grant cycles and distributions to ensure the correct fund (grant) is being used. Both will sign off on distribution changes as a form of internal controls. Anticipated Completion Date: Current and ongoing with any special education grants.

View Audit 394542

Finding 1186784 (2025-003)

Material Weakness 2025

Community Schools of Frankfort

IN

FINDING 2025-003 Finding Subject: Special Education Cluster (IDEA)- Earmarking Contact Person Responsible for Corrective Action: Scott Weltz, Denise Funston Contact Phone Number and Email Address: 765-654-5585, weltzs@frankfort.k12.in.us, funstond@frankfort.k12.in.us Views of Responsible Officials: ...

FINDING 2025-003 Finding Subject: Special Education Cluster (IDEA)- Earmarking Contact Person Responsible for Corrective Action: Scott Weltz, Denise Funston Contact Phone Number and Email Address: 765-654-5585, weltzs@frankfort.k12.in.us, funstond@frankfort.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Due to turnover in the Director of Exceptional Needs position, the waiver for proportionate share was not completed for these two grants. Moving forward, the Director knows that the waiver must be completed. The Treasurer will check in with the Director as an internal control measure to ensure that the nonpublic proportionate share funds are appropriately allocated based on expenses or that a waiver is completed. Anticipated Completion Date: Current and ongoing with any federal special education awards.

View Audit 394542

Finding 1186782 (2025-002)

Material Weakness 2025

Metropolitan School District of Wabash County

IN

Management agrees with the finding. MSDWC will continue to review and verify that applications and direct certifications are accurate and are coded correctly in the Skyward SIS/FS system. Corrective action plan has been implemented as this finding impacted fiscal year 2024 but did not recur in fisca...

Management agrees with the finding. MSDWC will continue to review and verify that applications and direct certifications are accurate and are coded correctly in the Skyward SIS/FS system. Corrective action plan has been implemented as this finding impacted fiscal year 2024 but did not recur in fiscal year 2025. The district’s CFO will oversee the corrective action plan, in coordination with the Food Service Director, to monitor the eligibility requirements on an ongoing basis.

View Audit 394538

Finding 1186777 (2025-001)

Material Weakness 2025

Metropolitan School District of Wabash County

IN

Management agrees with the finding. MSDWC will obtain the required number of qualified quotes whenever possible and maintain documentation of each quote for each purchase for the duration of the audit period. Corrective action plan has been implemented as this finding impacted fiscal year 2024 but d...

Management agrees with the finding. MSDWC will obtain the required number of qualified quotes whenever possible and maintain documentation of each quote for each purchase for the duration of the audit period. Corrective action plan has been implemented as this finding impacted fiscal year 2024 but did not recur in fiscal year 2025. The district’s CFO will oversee the corrective action plan, in coordination with the Food Service Director, to monitor the procurement process requirements on an ongoing basis.

View Audit 394538

Finding 1186772 (2025-003)

Material Weakness 2025

Person County

NC

Finding: 2025-001 Name of contact person: Corrective Action: Proposed Completion Date: Finding: 2025-002 Name of contact person: Corrective Action: Proposed Completion Date: Finding: 2025-003 Name of contact person: Corrective Action: Proposed Completion Date: Corrective Actions for Finding 2025-003...

Finding: 2025-001 Name of contact person: Corrective Action: Proposed Completion Date: Finding: 2025-002 Name of contact person: Corrective Action: Proposed Completion Date: Finding: 2025-003 Name of contact person: Corrective Action: Proposed Completion Date: Corrective Actions for Finding 2025-003 also apply to the State findings. Section III. Federal Award Findings and Questioned Costs Diane Oakley and Jasmine Cash, Medicaid Supervisors We will provide refresher trainings related to online verification sources, income verifications, living arrangement verification, life insurance verifications and applying burial exclusions. Additionally, we made some changes to our documentation procedures. Refresher training and procedure updates were completed by November 13, 2025. Section IV - State Award Findings and Question Costs Corrective Action Plan For the Year Ended June 30, 2025 Section II - Financial Statement Findings Tracy Clayton, Interim Chief Financial Officer To address the FY25 audit finding related to the misclassification of school construction assets financed through County borrowing, the County recorded a prior-period restatement to remove $5,006,090 of Construction in Process from governmental activities for assets properly reported on the School Board’s capital asset schedules, separate from the $607,354 change in accounting principle related to GASB Statement No. 101. To prevent recurrence, the Finance Department will implement procedures requiring documented determination of asset ownership and financial reporting responsibility prior to recording inter-entity capital projects, including confirmation of asset title for school-related projects involving County debt and an annual review of Construction in Process and capital asset balances for proper classification. June 30,2026 Tracy Clayton, Interim Chief Financial Officer The budget overexpenditure in the Insurance Fund resulted from a higher-than-anticipated volume and severity of insurance claims incurred during the fiscal year but reported and processed after year-end and required to be accrued as payables. To prevent recurrence, the Finance Department will enhance year-end claims estimation procedures, including coordination with the County’s insurance administrator to identify incurred-but-not-reported claims, and will monitor Insurance Fund activity throughout the year to assess the need for interim budget amendments. June 30,2026 156

View Audit 394528

Finding 1186771 (2025-002)

Material Weakness 2025

Vermont Law and Graduate School, Inc. and Subsidiary

VT

The Business Office at Vermont Law and Graduate School will review the Single Audit of all subrecipients to determine whether there are any findings which require a Corrective Action Plan related to those federal funds. We will implement a workbook which documents the date and time the Single Audit ...

The Business Office at Vermont Law and Graduate School will review the Single Audit of all subrecipients to determine whether there are any findings which require a Corrective Action Plan related to those federal funds. We will implement a workbook which documents the date and time the Single Audit was reviewed. The Business office will educate each Principal Investigator as to where to find the Policy for Subawards, as well as ensuring they have a clear understanding of their roles/responsibilities in accordance with the Policy. Responsible Parties: Stephanie Svahn – Controller (802) 831-1209 Angie Poulin – Grant Accountant (802) 831-1219 Principal Investigators of each Subaward Estimated Completion Date: Will be implemented moving forward as of 2/17/2026

View Audit 394511

Finding 1186770 (2025-001)

Material Weakness 2025

Vermont Law and Graduate School, Inc. and Subsidiary

VT

The Business Office at Vermont Law and Graduate School will update the Policy for Subawards document to include reviewing the System for Award Management (SAM) for employees as well as vendors to ensure they are not suspended, debarred or otherwise excluded from participating in federal programs. We...

The Business Office at Vermont Law and Graduate School will update the Policy for Subawards document to include reviewing the System for Award Management (SAM) for employees as well as vendors to ensure they are not suspended, debarred or otherwise excluded from participating in federal programs. We will implement this upon entry into a new Sub-Award Agreement, as well as for existing Sub-Award Agreements wherein the transaction is equal or exceeds $25,000.00. We will also implement this annually to any payment that is equal or exceeds $25,000.00 as best practice. We will implement a workbook which documents the date SAM was reviewed, and that the vendor/employee wasn’t suspended, debarred, or otherwise excluded from participating in federal programs at that time. The Business office will educate each Principal Investigator as to where to find the Policy for Subawards, as well as ensuring they have a clear understanding of their roles/responsibilities in accordance with the Policy. Responsible Parties: Stephanie Svahn – Controller (802) 831-1209 Angie Poulin – Grant Accountant (802) 831-1219 Principal Investigators of each Subaward Rebecca Dube – Accounts Payable (802) 831-1218 Estimated Completion Date: Will be implemented moving forward as of 2/17/2026

View Audit 394511

Finding 1186769 (2025-001)

Material Weakness 2025

United Methodist Open Door, INC

KS

Contact person for enacting the corrective action plan: Shawna Thompson, Current Finance Director of United Methodist Open Door Implementation Date: January 19, 2026 This deficiency resulted from new staff and transitioning from accounting being outsourced. We have currently enacted a plan for the f...

Contact person for enacting the corrective action plan: Shawna Thompson, Current Finance Director of United Methodist Open Door Implementation Date: January 19, 2026 This deficiency resulted from new staff and transitioning from accounting being outsourced. We have currently enacted a plan for the finance director to review payroll allocations and related journal entries posted by the finance assistant. In turn, the finance assistant will review payroll allocations and related journal entries posted by the finance director.

View Audit 394510

Finding 1186768 (2025-006)

Material Weakness 2025

Van Buren County, Tennessee

TN

The Tennessee Department of Agriculture concurs. To ensure effective internal controls over inventory at storage locations for school food distribution, the Tennessee Department of Agriculture added the risk of not complying with inventory requirements for school food to our Financial Integrity Act ...

The Tennessee Department of Agriculture concurs. To ensure effective internal controls over inventory at storage locations for school food distribution, the Tennessee Department of Agriculture added the risk of not complying with inventory requirements for school food to our Financial Integrity Act risk assessment along with the following mitigating controls: 1 - Monthly inventory reports are required to be sent by each of the three school food warehouses to the Commodities team. 2 - Developed monitoring guides and have begun using those guides to assist with warehouse visits. The Tennessee Department of Agriculture has a plan to begin observing inventory annually. We completed our first warehouse visit in February 2026 and anticipate completing visits to the other two warehouses by September 30, 2026. In addition to the annual on-site inventory observation, internal monthly inventory monitoring has been added to the duties of the Commodities team. Warehouses are now required to submit monthly inventory reports by the 10th of each month which are then analyzed by the team. The Tennessee Department of Agriculture is looking at ways to add a permanent position to the Commodities team. We have tried getting an additional position approved in the budget and we are exploring the possibility of repurposing vacant positions within the department. Finally, the Tennessee Department of Agriculture's special projects team has been looking at SOPs in place as well as the need for SOPs in areas without them. The Commodities team is next on the list for special projects to help with drafting and revising SOPs. The department plans to use this opportunity to establish written procedures that outline responsibilities for the school food program to help us ensure compliance with federal requirements. The Commodity Distribution Administrator will be responsible for ensuring corrective actions are implemented by the anticipated completion date of December 31, 2026.

View Audit 394493

Finding 1186767 (2025-004)

Material Weakness 2025

Van Buren County, Tennessee

TN

The Tennessee Department of Education (TDOE) concurs. The Tennessee Department of Education State Director of School Nutrition, Senior Compliance and Data Manager, and Data Processing and Reporting Specialist have been working with the Federal Funding and Accountability Transparency Act (FFATA) Syst...

The Tennessee Department of Education (TDOE) concurs. The Tennessee Department of Education State Director of School Nutrition, Senior Compliance and Data Manager, and Data Processing and Reporting Specialist have been working with the Federal Funding and Accountability Transparency Act (FFATA) System for Award Management (SAM) administrators to submit the required reports. The department is pursuing both internal practice adjustments and external collaboration with the United States Department of Agriculture (USDA) to ensure proper reporting. Internally, the department is working to develop an application programming interface (API) between the department’s nutrition data system and the recently updated federal reporting system to promote seamless report submissions. Externally, the department is collaborating with the Office of the CFO for the United States Department of Agriculture (USDA), noting the lack of more robust bulk upload options in the federal reporting system compared to the prior system. The department, alongside other states, continues to work with USDA to determine more efficient bulk upload options to streamline federal data reporting. The department will continue to leverage both these efforts to ensure reporting requirements are met. The Tennessee Department of Education has created and deployed a standard operating procedure (SOP) to inform staff of the responsibilities our office has in uploading the required reports. The department will also include a certification process in its standard operating procedures so that reports are reviewed prior to submission in the SAM platform.

View Audit 394493

Finding 1186766 (2025-011)

Material Weakness 2025

Van Buren County, Tennessee

TN

The Tennessee State Veterans Homes (VHB) partially concurs. While the Tennessee State Veterans Homes (VHB) grant application did not explicitly itemize retention bonuses, their use is consistent with the framework and intent of the grant, as defined in 38 CFR Part 53.11(b), which states the purpose ...

The Tennessee State Veterans Homes (VHB) partially concurs. While the Tennessee State Veterans Homes (VHB) grant application did not explicitly itemize retention bonuses, their use is consistent with the framework and intent of the grant, as defined in 38 CFR Part 53.11(b), which states the purpose is for an “employee incentive program to reduce the shortage of nurses at the TSVH.” The VHB is also actively consulting with the VA to clarify the status of prior billings and determine the appropriate path forward if any are deemed improper. As of the date of this update, we have not received a response.

View Audit 394493

Finding 1186765 (2025-010)

Material Weakness 2025

Van Buren County, Tennessee

TN

The Department of Human Services concurs. 1 - STS has taken steps to address the issues identified, implemented new processes to enhance oversight and risk management, and will continue to refine these efforts in alignment with evolving state policies and guidance. 2 - STS is working with DHS to est...

The Department of Human Services concurs. 1 - STS has taken steps to address the issues identified, implemented new processes to enhance oversight and risk management, and will continue to refine these efforts in alignment with evolving state policies and guidance. 2 - STS is working with DHS to establish a new interagency agreement that explicitly outlines each party’s responsibilities in monitoring vendor performance, validating security controls, and responding to risks associated with vendor-managed systems. 3 - In an effort to establish consistent standards for monitoring vendors, assessing technical safeguards, and ensuring alignment with applicable state and federal control frameworks, including the GAO Green Book and NIST 800-53, STS has also developed and presented a new Information Systems Council (ISC) policy regarding statewide guidance on third-party vendor oversight. Additionally, STS reviewed and updated departmental risk assessment documents to reflect third-party IT vendor oversight controls.

View Audit 394493

Finding 1186764 (2025-009)

Material Weakness 2025

Van Buren County, Tennessee

TN

The Tennessee Department of Transportation (TDOT) Management concurs. The following processes have been created to correct the issues with FFATA reporting: 1 - An internal submittal deadline has been created to ensure the timely submission of the FFATA report each month. This timeframe is 15 days fr...

The Tennessee Department of Transportation (TDOT) Management concurs. The following processes have been created to correct the issues with FFATA reporting: 1 - An internal submittal deadline has been created to ensure the timely submission of the FFATA report each month. This timeframe is 15 days from project approval. In the event something happens and the 15 days is missed, there is still time to correct the issue before becoming noncompliant with the FAA. 2 - All the information is kept on a separate excel strictly for FFATA reporting and contains checks in the file stating if it has been entered into SAM.gov and to ensure it is also on the ALL-Aero spreadsheet. 3 - Ensure that the information that is entered is transferred into the folder for that month. Via pdf or screenshot. 4 - Created a folder dedicated to FY26 for all things FFATA. This will be the norm going forward per fiscal year. 5 - Trained two senior staff members within the Grants and Compliance section on entering the information if the Statewide Technical Specialist is out or unable to get it in within the allotted timeframe. 6 - Emailing the Team Lead after the FFATA report has been entered as well as storing it on the shared drive in the FY26 FFATA Reporting Folder (or future corresponding folder). 7 - Created a section on our section’s OneNote (SOP) of how to enter the information and also put the information for the paths to the share drive FFATA files as well for anyone else in case something happened to any of the people who are trained it, continuity will be maintained. 8 - A line item has been created on the weekly one-on-one agenda between the Team Lead and Statewide Tech Spec following up on FFATA reporting status and cross-referenced with project approval list.

View Audit 394493

Finding 1186762 (2025-008)

Material Weakness 2025

Van Buren County, Tennessee

TN

The Tennessee Housing Development Agency Management (THDA) partially concurs. THDA has continued to refine its process to ensure timely and accurate reporting. In 2025, steps were taken to review reports prior to submission. The Manager additionally consulted with APPRISE, Inc., the data management ...

The Tennessee Housing Development Agency Management (THDA) partially concurs. THDA has continued to refine its process to ensure timely and accurate reporting. In 2025, steps were taken to review reports prior to submission. The Manager additionally consulted with APPRISE, Inc., the data management firm contracted to support HHS and LIHEAP grantees, prior to report submission. Apprise acknowledges that the report templates do not properly identify errors and encourages THDA to submit reports even when errors are noted. Any instances where errors were substantiated following report submission have been corrected in consultation with APPRISE. HHS has accepted all reports submitted by THDA and we have received no communication from HHS that THDA is in jeopardy of their consideration of any of the effects noted in your letter. We do acknowledge that there was an instance where numbers were not reported correctly or timely due to lags in getting the Low Income Home Energy Assistance Program (LIHEAP) weatherization data as well as improper grantee reporting. We are working to resolve this issue through the implementation of new software that will join the LIHEAP utility assistance and LIHEAP weatherization data together, on a single platform. THDA launched the software for the utility assistance segment of LIHEAP on November 1, 2025, and we expect the LIHEAP weatherization data to be online by October 1, 2026. THDA's work in 2025 to improve its reporting accuracy has been impacted considerably by inconsistent guidance at the Federal level. Since January 2025, due to periods of non-communication by the Health & Human Services (HHS) and subsequent reductions and changes in staffing at HHS, we have received various interpretations of HHS guidance. For instance, HHS has provided differing definitions of "obligation", creating some confusion with reporting. To date, HHS has not provided a final definition. THDA will continue to report obligations as is stated in our Model Plan, when funds are awarded and a contract is fully executed with the sub-grantee.

View Audit 394493

Finding 1186761 (2025-007)

Material Weakness 2025

Van Buren County, Tennessee

TN

The Tennessee Department of Health (TDH) concurs. 1 - With regard to the monitoring of single audit findings within subrecipients, Emergency Preparedness will work with their column’s Business and Grant Management (BGM) Team to ensure that grantees that require an annual single audit are identified ...

The Tennessee Department of Health (TDH) concurs. 1 - With regard to the monitoring of single audit findings within subrecipients, Emergency Preparedness will work with their column’s Business and Grant Management (BGM) Team to ensure that grantees that require an annual single audit are identified and that single audits are reviewed within 60 days of the audit date. If relevant findings and corresponding corrective actions are identified, the BGM Team will confer with program management, and communicate with the subrecipient as to whether the corrective actions taken are believed to sufficiently mitigate the deficiencies noted in the finding. This communication will be filed for reference by program management and shared with the Compliance & Ethics Office, where a log will be kept to track this activity. This process will be put in place by January 31, 2026, and be the responsibility of the BGM Team Compliance Manager. 2 - With regard to staffing issues, the Compliance & Ethics Office was challenged with the untimely death of their monitoring manager, while at the same time losing an additional staff member due to attrition. The Compliance & Ethics Office will ensure that in the event of staffing shortages, a hierarchical management structure is in place to make needed changes in the subrecipient monitoring plan if needed. The Assistant Commissioner that leads the Compliance & Ethics Office will be responsible for this effort and has put this structure in place effective January 1, 2026. 3 - Finally, the evaluation of the effectiveness of the subrecipient monitoring system will be conducted as part of the annual Financial Integrity Act Risk Assessment, conducted by December 31 of each year, beginning December 31, 2026. Additionally, the Compliance & Ethics Office will conduct an enterprise-wide refresher course on single audit review and other subrecipient compliance responsibilities on or before June 30 each year, beginning June 30, 2026.

View Audit 394493

Finding 1186759 (2025-005)

Material Weakness 2025

Van Buren County, Tennessee

TN

The Tennessee Department of Education (TDOE) concurs. Matching: On July 10, 2025, cross‑divisional staff members from the Tennessee Department of Education (TDOE) participated in a virtual training with Andrew Johnson from the U.S. Department of Education (ED), Office of Career, Technical, and Adult...

The Tennessee Department of Education (TDOE) concurs. Matching: On July 10, 2025, cross‑divisional staff members from the Tennessee Department of Education (TDOE) participated in a virtual training with Andrew Johnson from the U.S. Department of Education (ED), Office of Career, Technical, and Adult Education (OCTAE). The training agenda included an overview of matching requirements for the Perkins grant. Additionally, TDOE has procured training scheduled for April 1, 2026. Cross‑divisional staff members will engage in a full day of training focused on both programmatic and fiscal topics, including matching requirements, to further build team capacity. To support internal collaboration, CTE program staff currently attend monthly budget meetings to review and discuss program expenditures including both federal and state funds and determine whether adjustments are needed. Historically, these meetings focused primarily on program allowability; however, they were expanded to include a review of matching requirements specifically. Maintenance of Effort (MOE): On July 10, 2025, cross‑divisional staff members from the Tennessee Department of Education (TDOE) participated in a virtual training with Andrew Johnson from the U.S. Department of Education (ED), Office of Career, Technical, and Adult Education (OCTAE). The training agenda included an overview of Maintenance of Effort (MOE) requirements for the Perkins grant. Additionally, TDOE has procured training scheduled for April 1, 2026. Cross‑divisional staff members will engage in a full day of training focused on both programmatic and fiscal topics, including MOE requirements, to further build team capacity. The TDOE Fiscal Director reviews financial data and discusses any concerns or questions with CTE Program Managers. Processes have been updated to include documentation of these discussions. The team is implementing internal controls to ensure compliance with federal matching and MOE requirements. These controls include developing and documenting key processes and procedures to promote consistent and ongoing compliance. Documentation of review activities will be collected to demonstrate compliance and support ongoing monitoring of fiscal practices. In addition, leadership will evaluate the effectiveness of these control activities in mitigating identified risks and update the department’s annual risk assessment to reflect any new or revised controls implemented as a result of this finding.

View Audit 394493

Finding 1186754 (2025-003)

Material Weakness 2025

Van Buren County, Tennessee

TN

The Tennessee State University (TSU) Management concurs. The management of and the compliance with Title IV programs accountability is jointly owned by the Registrar’s Office and the Financial Aid Office, and as such requires commingled remediation. The Tennessee State University (TSU) has made sign...

The Tennessee State University (TSU) Management concurs. The management of and the compliance with Title IV programs accountability is jointly owned by the Registrar’s Office and the Financial Aid Office, and as such requires commingled remediation. The Tennessee State University (TSU) has made significant improvements by automating the potential return calculation for students with less than 60% of the semester complete and documenting the procedures for these instances. However, these findings reflect there is more to do related to the validation of the input data (i.e., dates) to ensure output accuracy (i.e., the calculation) as well as the coordination between the two offices to initiate action when a student withdrawal occurs. The Tennessee State University has identified this step as particularly critical and pervasive to our compliance. As stated in the response to Finding 2, the Financial Aid Office now receives an automated file of the students who have withdrawn that day. This report serves as a notice to review and update students’ enrollment statuses. The additional procedure helps to ensure accurate dates are being captured timely. Additionally, our comprehensive corrective action, referred to in Finding 1, to rebuild our application of payment sequencing will allow the automation of the returns once calculated. In addition to the process improvements, we continue to create a higher standard of operating effectiveness to ensure all critical policies and procedures are being executed properly without exception.

View Audit 394493

Finding 1186751 (2025-002)

Material Weakness 2025

Van Buren County, Tennessee

TN

The Tennessee State University (TSU) Management concurs. The management of and the compliance with Title IV programs accountability is jointly owned by the Admissions & Records Office and the Financial Aid Office, and as such require commingled remediation. While the TSU management has made signific...

The Tennessee State University (TSU) Management concurs. The management of and the compliance with Title IV programs accountability is jointly owned by the Admissions & Records Office and the Financial Aid Office, and as such require commingled remediation. While the TSU management has made significant improvements in the activities in the separate areas, including hiring additional staff, updating process documents, and re-emphasizing the process during staff meetings, these findings reflect there is more to do related to the connectivity activities and procedures of the Offices to ensure both accurate and timely reporting of students’ enrollment statuses. We have identified this is particularly critical in the compliance procedures that require sequential actions by different departments. Starting in the Fall 2025 semester, the Financial Aid Office receives an automated file of the students who have withdrawn that day. This report serves as a notice to review and update students’ enrollment statuses. The additional procedure helps to ensure accurate dates are being captured timely. In addition to the process improvements, we continue to create a higher standard of operating effectiveness to ensure all critical policies and procedures are being executed properly without exception.

View Audit 394493

Finding 1186749 (2025-001)

Material Weakness 2025

Van Buren County, Tennessee

TN

The Tennessee State University (TSU) Management concurs. The Refund Timeliness and Disbursement Notification Accountabilities are owned by the Bursar’s Office and the Financial Aid Office, respectively, and as such have required separate remediation. While we have made significant improvements, incl...

The Tennessee State University (TSU) Management concurs. The Refund Timeliness and Disbursement Notification Accountabilities are owned by the Bursar’s Office and the Financial Aid Office, respectively, and as such have required separate remediation. While we have made significant improvements, including updating process documents, increasing external staffing support, and internal training, the University’s “last dollar” scholarship approach creates more complexity that we continue to address. Post fiscal-end June 30, 2025, the Tennessee State University (TSU) updated the text scripts to ensure all required information is included, as well as activated non-term specific automated notifications. These updates were put into place for the Fall 2025 semester and are expected to provide additional safeguards from these errors going forward. Additionally, the TSU comprehensive corrective action is to rebuild our application of payment sequencing, including creating new detail codes with accurate parameters for all awards. This will allow our Banner system to properly automate refunds without the manual initiation and interventions currently required. We expect this project to be completed by the Fall 2026 semester.

View Audit 394493

Finding 1186746 (2025-001)

Material Weakness 2025

The New Randleman Housing Authority

NC

Name of Contact Person: Angela Glass, Executive Director. Corrective Action: Management will review the recertification process and plan to monitor recertifications. Proposed Completion Date: Immediately.

View Audit 394489

Finding 1186745 (2025-001)

Material Weakness 2025

Dunwoody College of Technology

MN

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the College review its reporting procedures to ensure the students’ statuses are timely reported to NSLDS as required by regulations. Explanation of disagreement with audit finding: There is no disagre...

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the College review its reporting procedures to ensure the students’ statuses are timely reported to NSLDS as required by regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Dunwoody’s Registrar’s Office has adjusted our reporting scheduling process to accommodate for additional time to work through our third-party vendor (NSC) customer service if there is a processing error. Our Registrar’s Office is attending all training provided by NSC on enrollment reporting and the Director of Financial Aid is attending NSLDS trainings provided by Federal Student Aid and NASFAA. In addition, we have scheduled monthly regular meetings between the Registrar and the Director of Financial Aid to collaborate and proactively address any concerns with NSLDS reporting in advance of deadlines. Name of the contact person responsible for corrective action: Jaz Hofbauer, Registrar Planned completion date for corrective action plan: This process is in place for the 2025-2026 academic year.

View Audit 394480

Finding 1186741 (2025-003)

Material Weakness 2025

Notre Dame of Maryland University, INC

MD

View of Responsible Officials The University concurs with this finding. Management has initiated a review of all relevant institutional academic calendars to ensure that the correct payment period start and end dates are accurately configured within the Colleague system. The Spring 2025 withdrawal p...

View of Responsible Officials The University concurs with this finding. Management has initiated a review of all relevant institutional academic calendars to ensure that the correct payment period start and end dates are accurately configured within the Colleague system. The Spring 2025 withdrawal population is being reviewed to determine whether additional R2T4 recalculations and returns of Title IV funds are required. Necessary corrections will be processed promptly. Going forward, the University will implement procedures to verify that system-configured term dates agree to the officially approved academic calendar prior to each academic term to ensure compliance with federal R2T4 requirements.

View Audit 394478

Corrective Action Plans

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