Corrective Action Plans

Finding 1237570 (2025-003)

Material Weakness 2025

NM

Special Tests & Provisions

2025-003—Special Tests and Provisions—Sliding Fee Discount Program Corrective Action: Management concurs with the finding. Management recognizes the importance of timely and accurate application of sliding fee discounts to ensure compliance with approved fee schedules, accurate patient account balan...

2025-003—Special Tests and Provisions—Sliding Fee Discount Program Corrective Action: Management concurs with the finding. Management recognizes the importance of timely and accurate application of sliding fee discounts to ensure compliance with approved fee schedules, accurate patient account balances, and proper financial reporting. Management will reinforce adherence to existing policies and procedures, provide staff reeducation, and perform a retrospective review of applicable claims to determine whether similar errors exist. Corrective actions and monitoring activities are outlined below.  Review and reissue the Sliding Fee Discount Program policy and procedures to all Patient Service Representatives, and Billing staff. Require staff acknowledgment of understanding.  Conduct mandatory staff training on the proper application of sliding fee discounts, including the requirement that discounts and write-offs be posted to patient accounts at the time services are rendered or when eligibility is determined. Perform a retrospective review of all sliding fee discount encounters for the prior 12 months to identify accounts where discounts were collected but corresponding adjustments were not timely posted. Correct identified accounts and document findings.  Quantify the prevalence of the error, determine root causes, and report results to executive leadership.  Implement a monthly monitoring process that includes a sample review of sliding fee discount accounts to verify that discounts are accurately applied and adjusted on the date of service or in accordance with policy requirements.  Report monitoring results quarterly to leadership and take corrective action as needed for any recurring issues identified. Person Responsible: Tammy Collins, Revenue Cycle Director Completion Date: January 31, 2027

View Audit 412514

Finding 1237569 (2025-001)

Material Weakness 2025

Mount Horeb Area Joint Fire Department

WI

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

Finding 2025-001 Repeat of finding 2024-001 Condition There was not a review/approval performed of the annual reserve deposit tested and its entry for the loan. The sample was not statistically valid Corrective Action Plan Corrective Action Planned: The control deficiency has been discussed with the...

Finding 2025-001 Repeat of finding 2024-001 Condition There was not a review/approval performed of the annual reserve deposit tested and its entry for the loan. The sample was not statistically valid Corrective Action Plan Corrective Action Planned: The control deficiency has been discussed with the Department’s management and we acknowledge our responsibility for a review and approval process. The Board was aware that this condition existed and realizes that the concentration of duties and responsibilities in a limited number of individuals is not desirable from a control point of view. The Department is now using our Fire Board Treasurer to review and confirm deposits and account balances for our USDA loan and reserve payments. This provides an additional, objective layer of duty separation for our financial work. This position is currently held by Mark Eastman from the Town of Perry, who is not part of our in-house management team. Mr. Eastman signed a written statement certifying his review for FY2026. As part of a broader separation of duties strategy, the Department now employs a Business Manager. This role has access to our QuickBooks accounting software to review all transactions, balances, and journal entries, with a directive to escalate any discrepancies found. Name of Contact Person Responsible for Corrective Action: Jenny Minter, Fire Chief Anticipated Completion Date: January 1, 2026

View Audit 412512

Finding 1237567 (2025-001)

Material Weakness 2025

City of Sumner

WA

Allowable Costs / Cost Principles Subrecipient Monitoring Cash Management

The City has reviewed the circumstances that resulted in the duplicate reimbursement and has strengthened its procedures for grant reimbursement requests involving invoices that have not completed the City's normal accounts payable posting process. Reimbursement requests shall include only expenditu...

The City has reviewed the circumstances that resulted in the duplicate reimbursement and has strengthened its procedures for grant reimbursement requests involving invoices that have not completed the City's normal accounts payable posting process. Reimbursement requests shall include only expenditures that have been paid, recorded in the City’s financial system, and posted to a closed accounting period, unless the grant agreement or grantee processing times mandates earlier submission. Invoices or other expenditures manually included in a reimbursement request prior to posting in the City's financial system will be separately identified and tracked. Prior to preparing subsequent reimbursement requests, these items will be reconciled against posted expenditures to ensure that amounts previously claimed are not included a second time. The City believes this additional reconciliation control, together with the repayment of the questioned amount, appropriately addresses the finding and reduces the risk of duplicate reimbursement requests in the future.

View Audit 412498

Finding 1237531 (2025-002)

Material Weakness 2025

Amistad Community Health Center, Inc.

TX

Eligibility

1) Revisit our training materials provided to our Patent Access Representatives upon being hired and revise such materials to emphasize sliding fee requirements more thoroughly. Provide testing to new hires after training to establish if training was effective. a. Anticipated completion on date: 10/...

1) Revisit our training materials provided to our Patent Access Representatives upon being hired and revise such materials to emphasize sliding fee requirements more thoroughly. Provide testing to new hires after training to establish if training was effective. a. Anticipated completion on date: 10/31/2026 for revisions, ongoing with new hire training. 2) Establish front desk (Patient Access Coordinator) supervisor “recap” trainings establishing the requirements for sliding fee designations. During this training, allow for on-hands role playing of scenarios conducted both at group and individual levels. a. Anticipated completion date: 10/31/2026 3) Establish routine spot audits. Our Patient Access Coordinator will do spot audits on a monthly routine, and more a formal process at the CFO level completed quarterly. a. Anticipated completion date: Ongoing

View Audit 412486

Finding 1237530 (2025-001)

Material Weakness 2025

Nebraska Public Power District

NE

Reporting Subrecipient Monitoring

2025-001 – Timing of Recognition of FEMA Public Assistance Expenditures on the Schedule of Expenditures of Federal Awards Award information Cluster: Not applicable Federal Granting Agency: Department of Homeland Security Award Name: Disaster Grants – Public Assistance Award Numbers: FEMA 4420-DR-NE,...

2025-001 – Timing of Recognition of FEMA Public Assistance Expenditures on the Schedule of Expenditures of Federal Awards Award information Cluster: Not applicable Federal Granting Agency: Department of Homeland Security Award Name: Disaster Grants – Public Assistance Award Numbers: FEMA 4420-DR-NE, FEMA 4325-DR-NE, FEMA 4521-DR-NE, FEMA 4616-DR-NE, FEMA 4641-DR-NE, FEMA 4662-DR-NE Award Years: 2019-2023 Assistance Listing #: 97.036 Assistance Listing Title: Disaster Grants – Public Assistance Pass-through Entity: Nebraska Emergency Management Agency Management acknowledges that its historical process for determining the timing of FEMA Public Assistance expenditures reported on the SEFA was based on the date eligible expenditures were incurred following a federally declared disaster and did not consistently incorporate the date FEMA obligated the related federal funding. Management reached out to Nebraska Emergency Management Agency (“NEMA”) in March 18, 2026. Lynn Feeken, NPPD Controller, performed email communication with NEMA regarding the approach used for past Single audits. Specifically, management indicated that criteria used in 2023 and prior was to include eligible incurred costs upon Federal disaster declaration, assuming they would be approved by NEMA/FEMA. For calendar years 2024 and forward NPPD would consider 2 criteria: (1) FEMA approved the nonfederal entity’s (NPPD’s) project (also referred to as obligated) and (2) the nonfederal entity (NPPD) incurred the eligible expenditures. While not specifically addressing the quantitative discrepancies in the Schedule of Expenditures of Federal Awards (“SEFA”) stemming from the different approach applied, NPPD confirmed that NEMA has no issues with the revised criteria via email. Management has revised its process to determine SEFA-reportable expenditures based on both the date eligible expenditures are incurred and the date FEMA approves the related project through obligation of the federal share. Management applied this methodology in preparing the 2025 SEFA and will for future SEFAs and will maintain supporting documentation of eligible expenditures and FEMA obligations. Leadership Responsible: Laura Kapustka, Executive Vice President & Chief Financial Officer; Lynn Feeken, Controller, Chuck Keep, Asset Accounting & Miscellaneous Billing Supervisor Completion Date: 09/23/2026

View Audit 412484

Finding 1237527 (2025-002)

Material Weakness 2025

Green County

WI

Internal Control / Segregation of Duties

See the Corrective action plant for chart/table

View Audit 412477

Finding 1237526 (2025-005)

Material Weakness 2025

Green County

WI

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.318 § 200.319 § 200.320 § 200.327

See the Corrective action plant for chart/table

View Audit 412477

Finding 1237524 (2025-005)

Material Weakness 2025

The Ministry of Caring, INC

DE

Eligibility Internal Control / Segregation of Duties Significant Deficiency

Corrective Action Plan: All files for the House of Joseph Residence are now reviewed on a quarterly basis by the case manager and the program director, and a checklist has been created so that case managers can confirm that all necessary documents are contained within a given client’s file. New inco...

Corrective Action Plan: All files for the House of Joseph Residence are now reviewed on a quarterly basis by the case manager and the program director, and a checklist has been created so that case managers can confirm that all necessary documents are contained within a given client’s file. New income certifications, which are part of the checklist for documents that need to be in a client’s file, have been completed as well and the two files lacking documentation to support the annual income reported by the tenant have been corrected. Contact Person Responsible for Corrective Action: Eugene Halus (COO), John Bates (Deputy Director, Programs), and Eugene Watson (Program Manager) Anticipated Completion Date of Corrective Action: Corrections were completed in August 2026.

View Audit 412475

Finding 1237523 (2025-004)

Material Weakness 2025

The Ministry of Caring, INC

DE

Eligibility Internal Control / Segregation of Duties HUD Housing Programs

Corrective Action Plan: The Organization had discovered the issue of one of the tenants of House of Joseph Residence exceeding 30% of the area median income when we assisted him in applying for Medicaid in early 2026, for which he was initially denied due to income. The individual in question was wo...

Corrective Action Plan: The Organization had discovered the issue of one of the tenants of House of Joseph Residence exceeding 30% of the area median income when we assisted him in applying for Medicaid in early 2026, for which he was initially denied due to income. The individual in question was working part-time, and we had him scale back his working hours accordingly so that in the future he would not exceed the threshold of the 30% area median income going forward and eventually qualify for Medicaid. We also emphasized with the tenant the consequences of exceeding the 30% limit as well. Contact Person Responsible for Corrective Action: Eugene Halus (COO), John Bates (Deputy Director, Programs), and Eugene Watson (Program Manager) Anticipated Completion Date of Corrective Action: Completed in early 2026.

View Audit 412475

Finding 1237520 (2025-001)

Material Weakness 2025

Housing Authority of Grant County

WA

HUD Housing Programs Internal Control / Segregation of Duties Subrecipient Monitoring

Finding ref number: 2025-001 Finding caption: The Housing Authority did not have adequate internal controls and did not comply with the Housing Quality Standards enforcement requirements of its Housing Voucher Cluster program. Name, address, and telephone of Housing Authority contact person: Housing...

Finding ref number: 2025-001 Finding caption: The Housing Authority did not have adequate internal controls and did not comply with the Housing Quality Standards enforcement requirements of its Housing Voucher Cluster program. Name, address, and telephone of Housing Authority contact person: Housing Authority of Grant County, 1139 Larson Blvd., Moses Lake, WA 98837, (509) 762-5541, Carol Anderson Corrective action the auditee plans to take in response to the finding: (If the auditee does not concur with the finding, the auditee must list the reasons for non-concurrence). The Housing Authority previously had procedures in place to ensure that life-threatening deficiencies were corrected within 24 hours and that staff conducted re-inspections within 24 hours of notifying property owners of the required repairs. However, following management and operations staff turnover, newly assigned personnel were not adequately trained on the established procedures and documentation requirements. As a result, required re-inspections and supporting documentation were not consistently completed within the prescribed timeframe. Upon identifying the compliance deficiency, the Housing Authority took immediate corrective action by providing training to all applicable staff members regarding Housing Quality Standards (HQS) documentation requirements and the mandatory 24-hour re-inspection timelines for life-threatening deficiencies. The Housing Authority has reinforced these procedures and implemented oversight measures to ensure ongoing compliance with HUD requirements. With respect to non-life-threatening deficiencies, the Housing Authority consistently notified property owners of required repairs and the 30-day correction deadline. However, re-inspections were not consistently conducted within 30 days of owner notification to verify that the deficiencies had been corrected. In many instances, re-inspections occurred after the required deadline had passed. Once this issue was identified, the Housing Authority immediately revised its procedures to ensure that re-inspections are scheduled and completed within 30 days of notifying property owners of required repairs. Staff received additional training on HQS compliance and re-inspection requirements, and management has implemented monitoring procedures to ensure timely follow-up and continued compliance with HUD regulations. Anticipated date to complete the corrective action: 08/01/2026

View Audit 412467

Finding 1237519 (2025-004)

Material Weakness 2025

Golden Triangle Resource Conservation and Development Area INC

GA

Procurement, Suspension & Debarment

2025-04: Documentation for expenditures Name of contact person: Rhonda Gordon, Program Coordinator Corrective Action: Appropriate documentation will be kept for all transactions, and all credit card receipts will be obtained for each purchase and kept with the appropriate statement. Proposed complet...

2025-04: Documentation for expenditures Name of contact person: Rhonda Gordon, Program Coordinator Corrective Action: Appropriate documentation will be kept for all transactions, and all credit card receipts will be obtained for each purchase and kept with the appropriate statement. Proposed completion date: The Board will implement the above procedure immediately.

View Audit 412460

Finding 1237518 (2025-003)

Material Weakness 2025

Golden Triangle Resource Conservation and Development Area INC

GA

Cash Management

2025-03: Approval for expenditures Name of contact person: Rhonda Gordon, Program Coordinator Corrective Action: A member of management or the Board of Directors will review and authorize all disbursements. This authorization will be evidenced by the initialing of each disbursement reviewed. Propose...

2025-03: Approval for expenditures Name of contact person: Rhonda Gordon, Program Coordinator Corrective Action: A member of management or the Board of Directors will review and authorize all disbursements. This authorization will be evidenced by the initialing of each disbursement reviewed. Proposed completion date: The Board will implement the above procedure immediately.

View Audit 412460

Finding 1237517 (2025-002)

Material Weakness 2025

Golden Triangle Resource Conservation and Development Area INC

GA

2025-02: Maintenance of the General Ledger Name of contact person: Rhonda Gordon, Program Coordinator Corrective Action: The books and records of the Organization will continue to be kept on a cash basis throughout the year, with accruals for any receivables and payables, and any other accruals be m...

2025-02: Maintenance of the General Ledger Name of contact person: Rhonda Gordon, Program Coordinator Corrective Action: The books and records of the Organization will continue to be kept on a cash basis throughout the year, with accruals for any receivables and payables, and any other accruals be made at year end to ensure accurate reporting. Proposed completion date: The Board will implement the above procedure immediately.

View Audit 412460

Finding 1237516 (2025-001)

Material Weakness 2025

Golden Triangle Resource Conservation and Development Area INC

GA

Internal Control / Segregation of Duties Cash Management Reporting

2025-01: Segregation of Duties Name of contact person: Rhonda Gordon, Program Coordinator Corrective Action: Duties and functions will be reviewed to determine where segregation needs to occur. The duties will be separated as much as possible and alternative controls will be implemented to compensat...

2025-01: Segregation of Duties Name of contact person: Rhonda Gordon, Program Coordinator Corrective Action: Duties and functions will be reviewed to determine where segregation needs to occur. The duties will be separated as much as possible and alternative controls will be implemented to compensate for lack of segregation. However, the risk of not segregating certain duties is not worth the additional costs. Nonfinancial employees will be trained and provide some assistance. Proposed completion date: The Board will implement the above procedure immediately.

View Audit 412460

Finding 1237511 (2025-001)

Material Weakness 2025

Housing Authority of the Township of Lakewood

NJ

HUD Housing Programs Special Tests & Provisions

Authority's Response and Planned Corrective Action Plan: The Authority acknowledges the deficiencies identified in the Housing Voucher Cluster and has implemented internal control procedures to ensure compliance with federal regulations. Scott Parsons, Executive Director, is responsible for ensuring...

Authority's Response and Planned Corrective Action Plan: The Authority acknowledges the deficiencies identified in the Housing Voucher Cluster and has implemented internal control procedures to ensure compliance with federal regulations. Scott Parsons, Executive Director, is responsible for ensuring the deficiencies have been rectified by December 31, 2026.

View Audit 412458

Finding 1237509 (2025-002)

Material Weakness 2025

City of Jamestown, New York

NY

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Name of Auditee: City of Jamestown, New York Name of Audit Firm: Drescher & Malecki, LLP Period Covered by the Audit: December 31, 2025 CAP Prepared by: Ericka Thomas, Comptroller Phone: (716) 483-7585 (B) Current Finding on the Schedule of Findings (1) Audit Finding 2025-002 (a) Comments on the Fin...

Name of Auditee: City of Jamestown, New York Name of Audit Firm: Drescher & Malecki, LLP Period Covered by the Audit: December 31, 2025 CAP Prepared by: Ericka Thomas, Comptroller Phone: (716) 483-7585 (B) Current Finding on the Schedule of Findings (1) Audit Finding 2025-002 (a) Comments on the Finding and Recommendation: The City agrees with the finding. The City also agrees with the recommendation. See below for actions taken. (b) Actions Taken: The City will update amounts and descriptions within the Department of Treasury’s reporting portal to ensure all amounts expended are properly reported. (c) Anticipated Completion Date: Management anticipates this finding will be resolved by December 31, 2026.

View Audit 412454

Finding 1237508 (2025-002)

Material Weakness 2025

ALBINA VISION TRUST, INC.

OR

Equipment & Real Property Management Reporting

Finding # 2025-002 Type: Significant deficiency Type: Immaterial noncompliance over equipment and real property management Assisting Listing Number: 14.251 Federal Agency: Department of Housing and Urban Development Name of Federal Program: Economic Development Initiative Finding: During testing of ...

Finding # 2025-002 Type: Significant deficiency Type: Immaterial noncompliance over equipment and real property management Assisting Listing Number: 14.251 Federal Agency: Department of Housing and Urban Development Name of Federal Program: Economic Development Initiative Finding: During testing of property purchased with federal funds, the Organization was unable to provide a comprehensive property record demonstrating the tracking and monitoring of federally funded assets. Recommendation: Management should develop and implement formal procedures for tracking and monitoring property acquired with federal funds. Corrective Action: Management agrees with the finding and will implement a formal property management process. The Organization will establish a centralized inventory of all equipment purchased with federal funds, perform periodic physical inventories, and implement management review procedures to ensure compliance with Uniform Guidance equipment management requirements. Responsibility for maintaining the inventory and monitoring compliance will be assigned to designated personnel. Anticipated Completion Date July 2026

View Audit 412453

Finding 1237507 (2025-001)

Material Weakness 2025

ALBINA VISION TRUST, INC.

OR

Cash Management

Finding # 2025-001 Type: Material weakness Assisting Listing Number: 14.251 Federal Agency: Department of Housing and Urban Development Name of Federal Program: Economic Development Initiative Finding: Management had not established formal policies and procedures requiring review and approval of dra...

Finding # 2025-001 Type: Material weakness Assisting Listing Number: 14.251 Federal Agency: Department of Housing and Urban Development Name of Federal Program: Economic Development Initiative Finding: Management had not established formal policies and procedures requiring review and approval of drawdown requests before funds were drawn from the federal payment system. Recommendation: Management should establish and document procedures requiring all federal cash drawdown requests to be reviewed and approved by an individual independent of the preparer prior to submission. The review should include verification that the requested amount is supported by eligible expenditures incurred or immediate cash needs, as applicable under the terms of the federal award. Evidence of the review and approval should be retained with the drawdown documentation. Corrective Action: Management agrees with the finding and will implement a formal review and approval process for all federal drawdowns. All draw requests will be reviewed and approved by the Director of Finance or another designated member of management prior to submission through the federal payment system. Documentation of the review will be retained with the supporting drawdown records. Anticipated Completion Date July 2026

View Audit 412453

Finding 1237506 (2025-005)

Material Weakness 2025

North Dakota Natural Resources Trust, Inc.

ND

Reporting Significant Deficiency

Finding 2025-005: SFSAC Submission Contact Person – Keith Trego, Executive Director Corrective Action Plan – This finding is noted together with the Board. The Trust agrees with the finding and recognizes the importance of timely submission of the Single Audit reporting package and Data Collection F...

Finding 2025-005: SFSAC Submission Contact Person – Keith Trego, Executive Director Corrective Action Plan – This finding is noted together with the Board. The Trust agrees with the finding and recognizes the importance of timely submission of the Single Audit reporting package and Data Collection Form to the Federal Audit Clearinghouse. To address this issue, management will establish procedures to monitor all Single Audit reporting deadlines Completion Date – The Trust will incorporate procedures into the year -end financial reporting process beginning with the current fiscal year.

View Audit 412451

Finding 1237493 (2025-002)

Material Weakness 2025

Boys & Girls Club of Brazoria County

TX

Reporting Significant Deficiency

Finding #2025-002 – Significant Deficiency and Other Noncompliance. Condition and context: Boys & Girls Club was unable to produce a report from its general ledger system that supported the expenditures reported in the schedule of expenditures of federal awards. Repeat of finding #2024-002. Recommen...

Finding #2025-002 – Significant Deficiency and Other Noncompliance. Condition and context: Boys & Girls Club was unable to produce a report from its general ledger system that supported the expenditures reported in the schedule of expenditures of federal awards. Repeat of finding #2024-002. Recommendation: Establish policies and procedures to record all federal expenditures in the general ledger system by class code in order to generate a report of expenditures by grant. Planned corrective action: Government funded transactions will be recorded in our general ledger in a manner which facilitates advanced reporting by federal awards. Management will further modify accounting system and review grant reports monthly to ensure transactions are properly recorded. Responsible officer: Amber Newman, CEO. Estimated completion date: October 1, 2026.

View Audit 412443

Finding 1237491 (2025-003)

Material Weakness 2025

Boys & Girls Club of Brazoria County

TX

Cash Management Allowable Costs / Cost Principles Significant Deficiency

Finding #2025-003 – Significant Deficiency and Other Noncompliance. Condition and context: In a sample of 30 vendor payments, we found three instances of reimbursement by the grantor totaling approximately $9,600 received approximately three to five months before payments were made to the vendors. R...

Finding #2025-003 – Significant Deficiency and Other Noncompliance. Condition and context: In a sample of 30 vendor payments, we found three instances of reimbursement by the grantor totaling approximately $9,600 received approximately three to five months before payments were made to the vendors. Repeat of finding #2024-004. Recommendation: Strengthen controls to ensure that invoices are paid in a timely manner to ensure federal reimbursements are not being held for an excess period of time. Planned corrective action: As part of our enhanced review of government transactions, we will be on the alert to disburse federal funds received in a timely/reasonable manner. Accounts payable report will be reviewed with a heightened priority to quickly disbursing federal funds received. Responsible officer: Amber Newman, CEO. Estimated completion date: October 1, 2026.

View Audit 412443

Finding 1237489 (2025-001)

Material Weakness 2025

Northwest Estates 811 - II

WA

HUD Housing Programs

Northwest Estates 811 respectfully submits the following corrective action plan for the year ended December 31, 2025: Auditee Identification Number: 171-HD013 S3800-160: Contact Person First Name: Tom S3800-180: Contact Person Last Name: Anderson Contact Person Email Address: tanderson@uminc.com Per...

Northwest Estates 811 respectfully submits the following corrective action plan for the year ended December 31, 2025: Auditee Identification Number: 171-HD013 S3800-160: Contact Person First Name: Tom S3800-180: Contact Person Last Name: Anderson Contact Person Email Address: tanderson@uminc.com Period covered by the audit: Year ended December 31, 2025 Name of audit firm: Squires Maddux & Company, PLLC 100 2nd Avenue South, Ste 270 Edmonds, Washington 98020 The findings from the December 31, 2025 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS – FINANCIAL STATEMENTS AUDIT See Finding 2025-001 under Part III Findings – Major Federal Award Program Audit FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT S3800-011 Title and Assistance Listing Number of Federal Program: 14.181 Supportive Housing for Persons with Disabilities (Continued) S3800-030: Statement of Condition: In March of 2025, the hazard and lability insurance policy lapsed and was not discovered until November of 2025 at which time management renewed coverage. S3800-080: Recommendation: Management should ensure that the Corporation maintains the required insurance coverage at all times and in the amounts required under HUD regulations. S3800-090: Corrective Actions Taken or to be Taken: Management agrees with the finding. The insurance lapse was caught and corrected in November of 2025. Management has established procedures to ensure that future lapses of coverage do not occur. _____________________________ ______________________ Tom Anderson, President Date

View Audit 412439

Finding 1237488 (2025-001)

Material Weakness 2025

Northwest Estates 811

WA

HUD Housing Programs Reporting

Northwest Estates 811 respectfully submits the following corrective action plan for the year ended December 31, 2025: Auditee Identification Number: 171-HD013 S3800-160: Contact Person First Name: Tom S3800-180: Contact Person Last Name: Anderson Contact Person Email Address: tanderson@uminc.com Per...

Northwest Estates 811 respectfully submits the following corrective action plan for the year ended December 31, 2025: Auditee Identification Number: 171-HD013 S3800-160: Contact Person First Name: Tom S3800-180: Contact Person Last Name: Anderson Contact Person Email Address: tanderson@uminc.com Period covered by the audit: Year ended December 31, 2025 Name of audit firm: Squires Maddux & Company, PLLC 100 2nd Avenue South, Ste 270 Edmonds, Washington 98020 The findings from the December 31, 2025 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS – FINANCIAL STATEMENTS AUDIT See Response to Finding 2025-001 under Part III Findings – Major Federal Award Program Audit. FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT (Continued) DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (Continued) S3800-011 Title and Assistance Listing Number of Federal Program: 14.181 Supportive Housing for Persons with Disabilities (Continued) S3800-030: Statement of Condition: During fiscal year 2024, the management company made a withdrawal of $12,027 to pay the annual insurance premium from the replacement reserve account without prior HUD approval. The withdrawal was not refunded to the replacement reserve account during the current year. During fiscal year 2025, the management company made an additional withdrawal totaling $7,777 to pay the insurance premium from the replacement reserve account without prior HUD approval. S3800-080: Auditor’s Recommendation: Management should ensure that all staff are aware of the HUD requirements regarding withdrawals from the replacement reserve account and establish the necessary procedures to ensure all withdrawals are approved prior to payment. S3800-090: Corrective Actions Taken or to be Taken: Management agrees with the finding and the auditor’s recommendation, and will take the necessary steps to mitigate further non-compliance. Management will seek approval from HUD for these withdrawals and any future withdrawals from the replacement reserve account. _____________________________ ______________________ Tom Anderson, President Date

View Audit 412437

Finding 1237486 (2025-004)

Material Weakness 2025

Housing Authority of Lincoln County

OR

Internal Control / Segregation of Duties Special Tests & Provisions HUD Housing Programs

Housing Choice Voucher Program – Assistance listing No. 14.871 Recommendation: We recommend the Authority implements controls to ensure that failed HQS inspections are completed timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in r...

Housing Choice Voucher Program – Assistance listing No. 14.871 Recommendation: We recommend the Authority implements controls to ensure that failed HQS inspections are completed timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The HQS inspections are outsourced to a third party vendor. HALC will be meeting with the vendor to present the audit findings, and will have better oversight on their work moving forward. Name(s) of the contact person(s) responsible for corrective action: Irma Jimenez, Housing Programs Manager Planned completion date for corrective action plan: Meeting with the vendor will be held in October, with the expectation that performance will be adjusted immediately.

View Audit 412428

Finding 1237483 (2025-003)

Material Weakness 2025

Housing Authority of Lincoln County

OR

HUD Housing Programs

Housing Choice Voucher Program – Assistance listing No. 14.871 Recommendation: We recommend that the Authority implement processes to ensure that all proper documentation is being maintained during the process for every tenant for eligibility determination. Explanation of disagreement with audit fin...

Housing Choice Voucher Program – Assistance listing No. 14.871 Recommendation: We recommend that the Authority implement processes to ensure that all proper documentation is being maintained during the process for every tenant for eligibility determination. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: HALC has implemented additional training to the Housing Program Administrators as well as increased auditing of the tenant files in 2026. Name(s) of the contact person(s) responsible for corrective action: Robyn Cole, Deputy Director Planned completion date for corrective action plan: Implemented immediately

View Audit 412428

Corrective Action Plans

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