Corrective Action Plans

Finding 1228561 (2026-001)

Material Weakness 2026

MI

Procurement, Suspension & Debarment

Management is in the process of drafting an updated procurement policy to comply with the new requirements of the Uniform Guidance.

View Audit 410190

Finding 1228106 (2026-001)

Material Weakness 2026

Charter Township of Clinton

MI

Allowable Costs / Cost Principles Material Weakness

Condition: We noted no formal evidence that the stated control to ensure performance of required inspections prior to contract approval operated effectively in one instance. Planned Corrective Action: Staff will review folders at various stages of the project to ensure all records of inspections at ...

Condition: We noted no formal evidence that the stated control to ensure performance of required inspections prior to contract approval operated effectively in one instance. Planned Corrective Action: Staff will review folders at various stages of the project to ensure all records of inspections at both the beginning and end of the project are in the file. Staff has already set up either bi-weekly or monthly meetings (depending on project activity levels) to report on the status of ongoing projects. These meetings were intended to help staff keep current projects in line with the overall project budget (i.e. not obligating funds beyond what’s available). Using these same meetings to check project files for all necessary records will be an adjustment of negligible effort. In instances where there is a sizable gap between portions of a project (e.g. part of the project can’t be completed until spring) staff will consider closing out the completed portion of the project and completing a final inspection on the balance of the job at a later date. Contact person responsible for corrective action: Edwin Manninen, Matthew Wallace Anticipated Completion Date: Immediately

View Audit 409938

Finding 1228052 (2026-002)

Material Weakness 2026

Cedar View, Inc.

IN

HUD notified management of the error in July 2026, and management will insure the required monthly deposits into the reserve for replacement account are made in a timely manner.

View Audit 409885

Finding 1228051 (2026-001)

Material Weakness 2026

Cedar View, Inc.

IN

Management will apply for loan advances to fund work-order repairs to complete in a timely manner.

View Audit 409885

Finding 1228050 (2026-001)

Material Weakness 2026

Mapleview, Inc.

IN

Management deposited $1,050 into the replacement for reserves account.

View Audit 409884

Finding 1228049 (2026-002)

Material Weakness 2026

Dogwood Place, Inc.

IN

Management is in process with HUD to get monthly deposits suspended so the Corporation has cash available for operating expenses.

View Audit 409883

Finding 1228048 (2026-001)

Material Weakness 2026

Dogwood Place, Inc.

IN

Matching / Level of Effort / Earmarking

Management should apply for loan advances to fund work-order repairs to complete in a timely manner.

View Audit 409883

Finding 1228042 (2026-001)

Material Weakness 2026

Regis University

CO

Student Financial Aid Special Tests & Provisions Subrecipient Monitoring

Finding 2026-001 Personnel Responsible for Corrective Action: Deborah Vinnola, Registrar Anticipated Completion Date: September 30, 2027 Corrective Action Plan: The Office of the Registrar has put into place a more detailed corrective action plan regarding the finding of delayed enrollment and non-e...

Finding 2026-001 Personnel Responsible for Corrective Action: Deborah Vinnola, Registrar Anticipated Completion Date: September 30, 2027 Corrective Action Plan: The Office of the Registrar has put into place a more detailed corrective action plan regarding the finding of delayed enrollment and non-enrollment reporting to NSLDS through NSC. The Office of the Registrar has adjusted the Degree Verify submission from every 45 days to every 30 days to NSC to ensure graduation dates are reported in a more timely fashion for NSLDS within the required 60 days for financial aid. Starting Summer 2026, the Office of the Registrar has begun inactivating academic programs for students who have not had registration activity within the last two to three academic years to ensure that they are not reported as enrolled to NSC/NSLDS. NSC Enrollment Reporting will continue to be submitted every 30 days and the Office of the Registrar has worked to review the reporting criteria using terms and not semesters to better report active enrollment in current courses. The Ellucian Graduation Application form and process is in the final stages of testing which will eliminate completely the need to add a pseudo course with a future date after the student’s current program has been inactivated or graduated. The Office of the Registrar will be more proactive with the colleges for identifying students who have not graduated within the six year (undergraduate), four year (graduate) and certificate time frames by working with the appropriate dean’s offices. This should eliminate those students who have completed their coursework; close to completing their coursework but were never reviewed by their advisor/program for graduation. Since Regis uses the end date of the last course completed, the Office of the Registrar will work with advising units to review the lists to increase a better reporting of degree completion.

View Audit 409876

Finding 1228040 (2026-001)

Material Weakness 2026

Family Health Centers

WA

Procurement, Suspension & Debarment § 200.214

2026-001 Suspension and Debarment Corrective action planned: To ensure full compliance with federal documentation standards moving forward: 1. Formalized Onboarding Control: In May 2026, the Organization updated its standard New Vendor Form to include a mandatory verification checkbox and documented...

2026-001 Suspension and Debarment Corrective action planned: To ensure full compliance with federal documentation standards moving forward: 1. Formalized Onboarding Control: In May 2026, the Organization updated its standard New Vendor Form to include a mandatory verification checkbox and documented sign-off confirming SAM.gov exclusion checks are completed prior to vendor setup or contract execution. 2. Existing Vendor Audit: Management is currently conducting a comprehensive review to document and retain SAM.gov exclusion verifications for all active vendors. Anticipated completion date: May 2026 Contact person responsible for corrective action: Scott Matlock

View Audit 409873

Finding 1227803 (2026-002)

Material Weakness 2026

United Way of Central Ohio

OH

Subrecipient Monitoring Internal Control / Segregation of Duties § 200.303 § 200.332

Finding Number: 2026-002 Condition: The Organization did not appropriately monitor subrecipient audit findings to determine whether prompt and appropriate corrective action has been taken. Planned Corrective Action: The Organization has implemented system and process improvements to ensure review of...

Finding Number: 2026-002 Condition: The Organization did not appropriately monitor subrecipient audit findings to determine whether prompt and appropriate corrective action has been taken. Planned Corrective Action: The Organization has implemented system and process improvements to ensure review of subrecipient audit reports. To the extent that findings are identified, allowable mitigation measures will be considered by the Organization and documented as allowed under 2 CFR. The Organization has and will continue to maintain appropriate staffing level and sufficient training to ensure appropriate review is taking place. Contact Person Responsible for Corrective Action: Hannah Bonacci, Director, Public Partnerships Anticipated Completion Date: July 31, 2026

View Audit 409775

Finding 1227802 (2026-001)

Material Weakness 2026

United Way of Central Ohio

OH

Reporting Subrecipient Monitoring

Finding Number: 2026-001 Condition: The Organization failed to correctly record grant revenue for certain federal programs during their 2026 fiscal year. Planned Corrective Action: Management will continue to evaluate current processes and practices to determine that contributions are being recogniz...

Finding Number: 2026-001 Condition: The Organization failed to correctly record grant revenue for certain federal programs during their 2026 fiscal year. Planned Corrective Action: Management will continue to evaluate current processes and practices to determine that contributions are being recognized in a timely manner based on when expenses are incurred, regardless of when they get reported to the Organization by the subrecipient. This will include building out currently utilized flowcharts/checklists as well as adding indicators into their assessment which will result in additional clarity regarding the status of the transaction and the timing of revenues and expenses to be recorded. Contact Person Responsible for Corrective Action: Emily West, Controller Anticipated Completion Date: July 31, 2026

View Audit 409775

Finding 1227745 (2026-001)

Material Weakness 2026

Moses Lake Community Health Center

WA

Special Tests & Provisions Subrecipient Monitoring Allowable Costs / Cost Principles

Corrective action planned: Management concurs with the finding and recognizes the importance of consistently applying the correct sliding fee discount schedule in effect at the time services are rendered. To address this finding, the organization has implemented enhanced monitoring and training cont...

Corrective action planned: Management concurs with the finding and recognizes the importance of consistently applying the correct sliding fee discount schedule in effect at the time services are rendered. To address this finding, the organization has implemented enhanced monitoring and training controls over the application of the sliding fee discount schedules. The Director of Patient Services (or designee) will perform monthly audits of 25 randomly selected patients accounts that received a sliding fee discount to verify that the correct discount schedule was applied and that the patient responsibility was calculated accurately. In addition, for any future changes to the sliding fee discount schedule, management will implement a transition review process that includes: • Verification that the updated fee schedule is accurately loaded into the billing system prior to the effective date and old fee schedules are inactivated. • Additional training for billing staff before implementation of any revised sliding fee schedule. • Continued monthly audits of sliding fee discounted patient accounts. • Quarterly reporting of audit results to Chief Financial Officer, to identify recurring issues and ensure corrective actions taken are effective. Anticipated completion date: July 31, 2026

View Audit 409718

Finding 1227306 (2026-001)

Material Weakness 2026

Heights Towers Services Company

TX

Procurement, Suspension & Debarment HUD Housing Programs Reporting

Audit Finding 2026-001: During our testing of tenant security deposits, it was discovered that the balance in the bank account maintained for tenant security deposits was insufficient to cover the liability for tenant security deposits payable. -Response: There was a temporary depletion of funds in ...

Audit Finding 2026-001: During our testing of tenant security deposits, it was discovered that the balance in the bank account maintained for tenant security deposits was insufficient to cover the liability for tenant security deposits payable. -Response: There was a temporary depletion of funds in the operating account, since they paid the amount of their insurance deductible to a vendor for urgent water damage remediation after an apartment fire on the property. This resulted in the operating account not having sufficient funds to cover the next payroll. Hence a temporary transfer of funds was made from the tenant security deposits account. Management is aware that the Regulatory Agreement stipulates maintaining sufficient funds in a separate tenant security deposit account to cover the liability for tenant security deposits payable and have since replenished the balance in the tenant security deposit account. The $1,900 was deposited back into the Security Deposit account on 08/17/2026. - Responsible Party: Linda G. Holder - Executive Director - Houston Housing Management Corporation - 1418 Preston St. - Houston, TX 77002

View Audit 409419

Finding 1226940 (2026-002)

Material Weakness 2026

Perry County Medical Center, Inc.

TN

Special Tests & Provisions Questioned Costs Material Weakness

In Finding 2026-002, it was reported that the Organization did not properly apply the sliding fee discounts for certain patients with visits to the Organization during the year ended March 31, 2026. Management recognizes the importance of complying with sliding fee guidelines and the Organization’s ...

In Finding 2026-002, it was reported that the Organization did not properly apply the sliding fee discounts for certain patients with visits to the Organization during the year ended March 31, 2026. Management recognizes the importance of complying with sliding fee guidelines and the Organization’s sliding fee policy. In response to Finding 2026-002, proper training will be given to employees, and sliding fee discounts will be reviewed by a supervisor on a periodic basis to ensure compliance with the sliding fee policy.

View Audit 409135

Finding 1226937 (2026-001)

Material Weakness 2026

Housing Authority of City of Danville

IL

HUD Housing Programs

Finding 2026-001 – Housing Choice Voucher Tenant Files – Eligibility – Internal Control over Tenant Files - Noncompliance & Significant Deficiency Corrective Action Plan: We believe the issues discovered during the annual audit related to the calculation and verification of annual income can easily ...

Finding 2026-001 – Housing Choice Voucher Tenant Files – Eligibility – Internal Control over Tenant Files - Noncompliance & Significant Deficiency Corrective Action Plan: We believe the issues discovered during the annual audit related to the calculation and verification of annual income can easily be addressed by strengthening our internal existing quality control processes to ensure exceptions are identified and corrected timely. While we have already been doing quality control reviews, we will increase the frequency and sample size throughout the fiscal year. Person(s) Responsible: Brittany Savalick, HCV Department Anticipated Completion Date: 07/01/2026 Jaclyn Vinson Executive Director Vermilion Housing Authority 1607 Clyman Lane Danville, IL 61832 jvinson@vermilionhousing.com 217-444-3101

View Audit 409131

Finding 1226445 (2026-001)

Material Weakness 2026

Stedman-Wade Health Services, Inc.

NC

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Cash Management

The CFO corrected the Federal Draw schedule to identify the payroll used each pay period for the draw request. The schedule shows the replacement of termed staff and a countdown of available grant dollars per staff. This report balances the Federal Draw schedule every pay period.

View Audit 409062

Finding 1226117 (2026-002)

Material Weakness 2026

Caddo Community Action Agency, Inc.

LA

Matching / Level of Effort / Earmarking

CCAA obtained nonfederal funds for expenditures exceeding the grant contract amount. CCAA is in the process of analyzing all grant expenditures and formulating plans to ensure expenditures do not exceed the annual contract amount.

View Audit 408809

Finding 1226005 (2026-001)

Material Weakness 2026

The Willows at Melvin Place

WA

HUD Housing Programs Questioned Costs

Condition: Management did not renew their property insurance which expired 10/27/25 until new coverage was executed effective date 7/8/26. Corrective Action: We obtained property/liability insurance for the period 7/8/26-10/27/27 as of 7/10/26. The organization will maintain a centralized insurance ...

Condition: Management did not renew their property insurance which expired 10/27/25 until new coverage was executed effective date 7/8/26. Corrective Action: We obtained property/liability insurance for the period 7/8/26-10/27/27 as of 7/10/26. The organization will maintain a centralized insurance and compliance calendar containing policy expiration dates, premium due dates, responsible parties, broker contact information and required documentation. Management will verify active insurance coverage monthly and retain current policies, certificates of insurance, invoices, and proof of payment in a centralized electronic file. The Finance Committee will review insurance coverage as part of its regular financial oversight and report to the full Board of Directors at the monthly meeting and no later than 90 days before policy expiration so that immediate action can take place. Person Responsible: Board President Date of Corrective Action: 7/10/26

View Audit 408685

Finding 1225600 (2026-001)

Material Weakness 2026

Northwest Michigan Health Services, Inc.

MI

Questioned Costs Special Tests & Provisions Subrecipient Monitoring

Recommendation – We recommend the Center provide proper training to employees to ensure that the sliding fee discounts are being properly applied and documented. In addition to implementing policies and procedures to ensure the sliding fee discounts are being properly monitored and supervised on a p...

Recommendation – We recommend the Center provide proper training to employees to ensure that the sliding fee discounts are being properly applied and documented. In addition to implementing policies and procedures to ensure the sliding fee discounts are being properly monitored and supervised on a periodic basis to ensure compliance. Action Taken – We concur with the audit finding. While the Center has a policy that meets the compliance requirements, management is responsible for the implementation and monitoring of those processes and procedures. Additional staff training on slide fee discounts is in place and monthly review and testing of compliance with Center sliding fee discount policy will be done.

View Audit 408481

Finding 1225586 (2026-001)

Material Weakness 2026

Southern Illinois Healthcare Enterprises, Inc.

IL

Allowable Costs / Cost Principles § 200.302 § 200.403

Finding No. 2026-001: During testing of allowable costs for Major Program 93.912, one instance was identified in which payroll benefit costs charged to the federal award were overstated by $383 due to an error in the calculation of payroll-related benefits associated with an individual employee. As ...

Finding No. 2026-001: During testing of allowable costs for Major Program 93.912, one instance was identified in which payroll benefit costs charged to the federal award were overstated by $383 due to an error in the calculation of payroll-related benefits associated with an individual employee. As a result of the exception identified during audit testing, we performed additional procedures over the affected population and determined that an incorrect payroll base had been used in calculating benefit allocations charged to federal awards for certain employees for which payroll and benefits are allocated to federal programs. We identified unsupported payroll benefit costs and indirect costs charged to the following federal programs: Program 93.912-$15,046; Program 93.387-$1,901; and Program 93.889-$29,718, for total questioned costs of $46,665. We intend to return these funds to the grantor agencies. Accordingly, the $46,665 of unsupported costs was removed from expenditures reported on the Schedule of Expenditures of Federal Awards, and no known questioned costs are reported in the Schedule of Findings and Questioned Costs. Corrective Actions Planned: A simplified report has been identified that will reduce the risk of calculation errors. This report will be used for all future calculations related to payroll-related benefits for grants. Responsible Party: Karla Dillow, Assistant Director of Accounting Target Completion Date: March 31, 2027

View Audit 408460

Finding 1225538 (2026-001)

Material Weakness 2026

Menominee Housing Commission

MI

Procurement, Suspension & Debarment HUD Housing Programs § 200.317

2026-001 Public Housing Capital Fund Recommendation: The Commission should implement policies and procedures to ensure all federal compliances are followed pertaining to Procurement, Suspension and Debarment. Action Taken: Management will implement policies and procedures to ensure the Commission is...

2026-001 Public Housing Capital Fund Recommendation: The Commission should implement policies and procedures to ensure all federal compliances are followed pertaining to Procurement, Suspension and Debarment. Action Taken: Management will implement policies and procedures to ensure the Commission is in compliance with all grant requirements pertaining to the Public Housing Capital Grant. Anticipated Completion Date of Action: October 31, 2026

View Audit 408417

Finding 1225079 (2026-002)

Material Weakness 2026

Orlando Rehabilitation Group

FL

Questioned Costs HUD Housing Programs Matching / Level of Effort / Earmarking

To Whom it May Concern, Orlando Rehabilitation Group, Inc. has a $2.7 million dollar advance on their balance sheet. These advances were made to unaffiliated not-for-profit healthcare organizations. These advances are to be repaid by these organizations. Orlando Rehabilitation Group, Inc., was unawa...

To Whom it May Concern, Orlando Rehabilitation Group, Inc. has a $2.7 million dollar advance on their balance sheet. These advances were made to unaffiliated not-for-profit healthcare organizations. These advances are to be repaid by these organizations. Orlando Rehabilitation Group, Inc., was unaware that such an advance was not permitted to be made. Kane Financial Services was also unaware. The plan to correct it includes the following action steps:  Seeking approval from HUD for the $2.7M advance.  If the advance is not approved, then the repayment will occur by the organizations over an 18 month period beginning in October 2025. It is understood that such advances will not be made going forward without prior HUD approval. The contact information for oversight of the plan is: Susan Shain Executive Vice President of Finance, Kane Financial Services Email: SShain@kanefs.com Phone: 561-223-4161

View Audit 408236

Finding 1225078 (2026-001)

Material Weakness 2026

Orlando Rehabilitation Group

FL

Questioned Costs HUD Housing Programs Internal Control / Segregation of Duties

To Whom it May Concern, Orlando Rehabilitation Group, Inc. issued $8.0 million in grants during the fiscal year ending March 31, 2026. These grants were made to unaffiliated not-for-profit healthcare organizations. Orlando Rehabilitation Group, Inc., was unaware that these grants were not permitted ...

To Whom it May Concern, Orlando Rehabilitation Group, Inc. issued $8.0 million in grants during the fiscal year ending March 31, 2026. These grants were made to unaffiliated not-for-profit healthcare organizations. Orlando Rehabilitation Group, Inc., was unaware that these grants were not permitted to be made according to the structure of their HUD Mortgage. Kane Financial Services was also unaware. The plan to correct it includes the following action steps:  Seeking approval from HUD for the $8.0M in grants.  If the grant is not approved, then the Orlando Rehabilitation Group, Inc., will attempt to facilitate a re-payment plan over an extended period of time with the recipients of the grants. It is understood that such grants will not be made going forward without prior HUD approval. The contact information for oversight of the plan is: Susan Shain Executive Vice President of Finance, Kane Financial Services Email: SShain@kanefs.com Phone: 561-223-4161

View Audit 408236

Finding 1225076 (2026-007)

Material Weakness 2026

Village of Marion

MI

Procurement, Suspension & Debarment

This finding is due to the Village not having control procedures in place for ensuring contractors performing work on federal projects were not suspended or debarred. Subsequently, the Village’s engineer has searched the state procurement office webpage to check if any vendor for a federal project i...

This finding is due to the Village not having control procedures in place for ensuring contractors performing work on federal projects were not suspended or debarred. Subsequently, the Village’s engineer has searched the state procurement office webpage to check if any vendor for a federal project is on the debarment list, which they are not. In the future, the Village will have controls in place to ensure that vendors are not debarred or suspended from federal funding awards. The person responsible for the corrective action is the Village President. The anticipated completion date of the corrective action plan is before the end of the 2027 fiscal year. The plan for adherence is the Council will review implement controls to ensure that vendors are not suspended, debarred, or otherwise excluded.

View Audit 408218

Finding 1225075 (2026-006)

Material Weakness 2026

Village of Marion

MI

Procurement, Suspension & Debarment Allowable Costs / Cost Principles

This finding is due to the Village not having formal written policies in place required by Uniform Guidance. The Village is aware that these policies are required and will adopt all necessary policies. The Village does not believe that there were any actual nonallowable costs or transactions because...

This finding is due to the Village not having formal written policies in place required by Uniform Guidance. The Village is aware that these policies are required and will adopt all necessary policies. The Village does not believe that there were any actual nonallowable costs or transactions because of the lack of written policies as required by Uniform Guidance. The Village will adopt all necessary policies to be in compliance. The person responsible for the corrective action is the Village President. The anticipated completion date of the corrective action plan is before the end of the 2027 fiscal year. The plan for adherence is the Council will review all proposed policies and adopt them, the Council will also monitor any changes to policy requirements to ensure that they are in compliance in the future.

View Audit 408218

Corrective Action Plans

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