Corrective Action Plans

Finding 1166935 (2023-018)

Material Weakness 2023

State of Kosrae

FM

Procurement, Suspension & Debarment

• Review procurement processes and require implementing agencies to verify suspension and debarment status via SAM.gov, with documentation for all transactions. • Implement formal procedures (e.g., printed checks, certifications) prior to covered transactions. · Note: Questioned costs unwarranted as...

• Review procurement processes and require implementing agencies to verify suspension and debarment status via SAM.gov, with documentation for all transactions. • Implement formal procedures (e.g., printed checks, certifications) prior to covered transactions. · Note: Questioned costs unwarranted as no evidence of suspended/debarred vendors or noncompliance established. 9/30/2026 Mr. Marcus Samo, Secretary of FSMNG Health Email: marcus.samu@fsmhealth.gov.fm

View Audit 377993

Finding 1166934 (2023-017)

Material Weakness 2023

State of Kosrae

FM

Equipment & Real Property Management § 200.313

• Maintain tailored Fixed Asset Register (FAR) for applicable programs. • Deploy staff to conduct physical asset counts and quarterly monitoring for compliance. • Note: Tailored FAR was provided during audit; full national FAR outside scope. 9/30/2026 Mr. Marcus Samo, Secretary of FSMNG Health Email...

• Maintain tailored Fixed Asset Register (FAR) for applicable programs. • Deploy staff to conduct physical asset counts and quarterly monitoring for compliance. • Note: Tailored FAR was provided during audit; full national FAR outside scope. 9/30/2026 Mr. Marcus Samo, Secretary of FSMNG Health Email: marcus.samu@fsmhealth.gov.fm

View Audit 377993

Finding 1166933 (2023-011)

Material Weakness 2023

State of Kosrae

FM

Reporting

Disagree with adverse compliance opinion and findings, as auditors applied Uniform Guidance (2 CFR Part 200) requirements, which are inapplicable to Compact sector grants (ALN 15.875) governed exclusively by the Compact of Free Association, as amended, and the Fiscal Procedures Agreement (FPA). • Re...

Disagree with adverse compliance opinion and findings, as auditors applied Uniform Guidance (2 CFR Part 200) requirements, which are inapplicable to Compact sector grants (ALN 15.875) governed exclusively by the Compact of Free Association, as amended, and the Fiscal Procedures Agreement (FPA). • Request U.S. Department of the Interior, Office of Insular Affairs, to disregard these findings for grant administration and questioned costs resolution, as they do not reflect noncompliance with Compact/FPA standards. • Maintain commitment to accountability under Compact/FPA standards. 9/30/2026 Ms. Christina Elnei, Asst. Secretary of National Treasury (primary contact) Email: christina.elnei@dofa.gov.fm

View Audit 377993

Finding 1166932 (2023-010)

Material Weakness 2023

State of Kosrae

FM

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

Disagree with adverse compliance opinion and findings, as auditors applied Uniform Guidance (2 CFR Part 200) requirements, which are inapplicable to Compact sector grants (ALN 15.875) governed exclusively by the Compact of Free Association, as amended, and the Fiscal Procedures Agreement (FPA). • Re...

Disagree with adverse compliance opinion and findings, as auditors applied Uniform Guidance (2 CFR Part 200) requirements, which are inapplicable to Compact sector grants (ALN 15.875) governed exclusively by the Compact of Free Association, as amended, and the Fiscal Procedures Agreement (FPA). • Request U.S. Department of the Interior, Office of Insular Affairs, to disregard these findings for grant administration and questioned costs resolution, as they do not reflect noncompliance with Compact/FPA standards. • Maintain commitment to accountability under Compact/FPA standards. 9/30/2026 Ms. Christina Elnei, Asst. Secretary of National Treasury (primary contact) Email: christina.elnei@dofa.gov.fm

View Audit 377993

Finding 1166931 (2023-009)

Material Weakness 2023

State of Kosrae

FM

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

Disagree with adverse compliance opinion and findings, as auditors applied Uniform Guidance (2 CFR Part 200) requirements, which are inapplicable to Compact sector grants (ALN 15.875) governed exclusively by the Compact of Free Association, as amended, and the Fiscal Procedures Agreement (FPA). • Re...

Disagree with adverse compliance opinion and findings, as auditors applied Uniform Guidance (2 CFR Part 200) requirements, which are inapplicable to Compact sector grants (ALN 15.875) governed exclusively by the Compact of Free Association, as amended, and the Fiscal Procedures Agreement (FPA). • Request U.S. Department of the Interior, Office of Insular Affairs, to disregard these findings for grant administration and questioned costs resolution, as they do not reflect noncompliance with Compact/FPA standards. • Maintain commitment to accountability under Compact/FPA standards. 9/30/2026 Ms. Christina Elnei, Asst. Secretary of National Treasury (primary contact) Email: christina.elnei@dofa.gov.fm

View Audit 377993

Finding 1166930 (2023-008)

Material Weakness 2023

State of Kosrae

FM

Procurement, Suspension & Debarment

Disagree with adverse compliance opinion and findings, as auditors applied Uniform Guidance (2 CFR Part 200) requirements, which are inapplicable to Compact sector grants (ALN 15.875) governed exclusively by the Compact of Free Association, as amended, and the Fiscal Procedures Agreement (FPA). • Re...

Disagree with adverse compliance opinion and findings, as auditors applied Uniform Guidance (2 CFR Part 200) requirements, which are inapplicable to Compact sector grants (ALN 15.875) governed exclusively by the Compact of Free Association, as amended, and the Fiscal Procedures Agreement (FPA). • Request U.S. Department of the Interior, Office of Insular Affairs, to disregard these findings for grant administration and questioned costs resolution, as they do not reflect noncompliance with Compact/FPA standards. • Maintain commitment to accountability under Compact/FPA standards. 9/30/2026 Ms. Christina Elnei, Asst. Secretary of National Treasury (primary contact) Email: christina.elnei@dofa.gov.fm

View Audit 377993

Finding 1166929 (2023-007)

Material Weakness 2023

State of Kosrae

FM

Equipment & Real Property Management

Disagree with adverse compliance opinion and findings, as auditors applied Uniform Guidance (2 CFR Part 200) requirements, which are inapplicable to Compact sector grants (ALN 15.875) governed exclusively by the Compact of Free Association, as amended, and the Fiscal Procedures Agreement (FPA). • Re...

Disagree with adverse compliance opinion and findings, as auditors applied Uniform Guidance (2 CFR Part 200) requirements, which are inapplicable to Compact sector grants (ALN 15.875) governed exclusively by the Compact of Free Association, as amended, and the Fiscal Procedures Agreement (FPA). • Request U.S. Department of the Interior, Office of Insular Affairs, to disregard these findings for grant administration and questioned costs resolution, as they do not reflect noncompliance with Compact/FPA standards. • Maintain commitment to accountability under Compact/FPA standards. 9/30/2026 Ms. Christina Elnei, Asst. Secretary of National Treasury (primary contact) Email: christina.elnei@dofa.gov.fm

View Audit 377993

Finding 1166928 (2023-006)

Material Weakness 2023

State of Kosrae

FM

Allowable Costs / Cost Principles

• Disagree with adverse compliance opinion and findings, as auditors applied Uniform Guidance (2 CFR Part 200) requirements, which are inapplicable to Compact sector grants (ALN 15.875) governed exclusively by the Compact of Free Association, as amended, and the Fiscal Procedures Agreement (FPA). • ...

• Disagree with adverse compliance opinion and findings, as auditors applied Uniform Guidance (2 CFR Part 200) requirements, which are inapplicable to Compact sector grants (ALN 15.875) governed exclusively by the Compact of Free Association, as amended, and the Fiscal Procedures Agreement (FPA). • Request U.S. Department of the Interior, Office of Insular Affairs, to disregard these findings for grant administration and questioned costs resolution, as they do not reflect noncompliance with Compact/FPA standards. • Maintain commitment to accountability under Compact/FPA standards. 9/30/2026 Ms. Christina Elnei, Asst. Secretary of National Treasury (primary contact) Email: christina.elnei@dofa.gov.fm

View Audit 377993

Finding 1166829 (2023-004)

Material Weakness 2023

Sage Safety Advocacy Growth Empowerment of Chelan and Douglas Counties

WA

Allowable Costs / Cost Principles

Views of responsible officials and planned corrective action: During the transition to the new Executive Director, payroll transaction procedures have been put into effect in order to ensure that pay increases, timesheets, and performance reviews are properly reviewed and approved by management, BOD...

Views of responsible officials and planned corrective action: During the transition to the new Executive Director, payroll transaction procedures have been put into effect in order to ensure that pay increases, timesheets, and performance reviews are properly reviewed and approved by management, BOD, or the executive director. Contact Persons: Carly Burwell, Board Treasurer & Bethany Alhaidri, Executive Director

View Audit 377964

Finding 1166812 (2023-002)

Material Weakness 2023

Summit County Child Care Resource and Referral

CO

Dismissal of current bookkeepers, and hired on CPA to assist with implementation of additional internal controls.

View Audit 377925

Finding 1166811 (2023-001)

Material Weakness 2023

Summit County Child Care Resource and Referral

CO

Dismissal of current bookkeepers, and hired on CPA to assist with implementation of additional internal controls.

View Audit 377925

Finding 1166658 (2023-001)

Material Weakness 2023

McGrath Native Village Council

AK

McGrath Native Village agrees with the finding and is in the process of engaging with the current auditors for subsequent delinquent audits.

View Audit 377625

Finding 1166605 (2023-004)

Material Weakness 2023

Redevelopment Authority of the County of Berks

PA

Reporting Significant Deficiency § 200.512

2023-004 TIMING OF AUDIT COMPLETION - SIGNIFICANT DEFICIENCY Federal Program Community Development Block Grant/Entitlement Grant ALN 14.218; passed through the County of Berks HOME Investment Partnership Program ALN 14.239; passed through the County of Berks. Emergency Rental Assistance ALN 21.023; ...

2023-004 TIMING OF AUDIT COMPLETION - SIGNIFICANT DEFICIENCY Federal Program Community Development Block Grant/Entitlement Grant ALN 14.218; passed through the County of Berks HOME Investment Partnership Program ALN 14.239; passed through the County of Berks. Emergency Rental Assistance ALN 21.023; passed through the County of Berks. Coronavirus State and Local Fiscal Recovery ALN 21.027; passed through the Commonwealth of Pennsylvania Department of Community and Economic Development. Condition The Authority did not submit the Single Audit reporting package and Data Collection Form to the Federal Audit Clearinghouse within the required timeframe of nine months after the end of the audit period. The 2022 reporting package was submitted on May 7, 2025, which was after the one month due date of September 30, 2023. In addition, the 2023 reporting package was not submitted by the September 30, 2024 due date. Recommendation We recommend that the Authority continue to execute their plan to bring the accounting records up to date and submit outstanding audited financial statements to the Federal Audit Clearinghouse. Management Response The Authority will continue to execute their plan to bring the accounting records up to date and submit outstanding audited financial statements to the Federal Audit Clearinghouse.

View Audit 377585

Finding 1166599 (2023-003)

Material Weakness 2023

Redevelopment Authority of the County of Berks

PA

Subrecipient Monitoring Allowable Costs / Cost Principles Significant Deficiency § 200.400

2023-003 ALLOWABLE ACTIVITIES AND ALLOWABLE COSTS - SIGNIFICANT DEFICIENCY Federal Program Emergency Rental Assistance ALN 21.023; passed through the County of Berks. Condition/Cause For 23 out of 60 cases tested, the amount paid for rent or utilities did not agree to a lease agreement or bills on f...

2023-003 ALLOWABLE ACTIVITIES AND ALLOWABLE COSTS - SIGNIFICANT DEFICIENCY Federal Program Emergency Rental Assistance ALN 21.023; passed through the County of Berks. Condition/Cause For 23 out of 60 cases tested, the amount paid for rent or utilities did not agree to a lease agreement or bills on file for the following reasons: (I) clerical errors, (2) duplicate payments due to multiple staff working on the same file, or (3) failure to request or maintain support before payment was made. Known questioned costs associated with the 23 exceptions noted in our testing were $9,867. Based on the projection of the sampling results to the remaining population, we project additional likely questioned costs of approximately $173,400. The Authority did not have controls in place to detect the noncompliance prior to issuing payments. We recommend the Authority revisit and strengthen internal controls over tracking individual payments for transactions entered as batches, particularly when related to federal awards. We encourage the Authority to continue working to identify the individual transactions making up the remainder of the federal expenditures under this program. We also recommend the Authority revisit and strengthen internal controls over allowable activities and allowable costs related to grant programs. Management Response The Authority launched the Emergency Rental Assistance Program (ERAP) with little administrative guidance from the U.S. Treasury. The Authority contracted with the Berks Coalition to End Homelessness (BCEH) to undertake various aspects of the Emergency Rental Assistance Program and in the late fall of 2021, the Authority began reviewing all case documentation provided by BCEH. This review eliminated the vast majority of the errors noted. The Authority also updated case documentation checklists as well as provided training for staff involved with ERAP. Current Status of Corrective Action Plan The Authority has resolved this finding. An additional review was added at the close of each case.

View Audit 377585

Finding 1166598 (2023-002)

Material Weakness 2023

Redevelopment Authority of the County of Berks

PA

Material Weakness Reporting Program Income § 200.307

2023-002 PROGRAM INCOME - MATERIAL WEAKNESS Federal Program Community Development Block Grant/Entitlement Grant ALN 14.218; passed through the County of Berks and HOME Investment Partnership Program ALN 14.239; passed through the County of Berks. Condition/Cause During our testing of program income ...

2023-002 PROGRAM INCOME - MATERIAL WEAKNESS Federal Program Community Development Block Grant/Entitlement Grant ALN 14.218; passed through the County of Berks and HOME Investment Partnership Program ALN 14.239; passed through the County of Berks. Condition/Cause During our testing of program income received during 2023, it was noted that the Authority did not report all program income received into IDIS. As a result of not entering all program income into IDIS, our testing indicated that new entitlement funds were drawn down prior to utilizing all available program income on hand. The Authority utilizes a separate general ledger account in the financial reporting software to record all program income received for each federal grant program. The Fiscal Officer enters the program income into IDIS. No internal control existed to ensure the completeness or accuracy of the program income information entered into IDIS. Recommendation We recommend the Authority develop and implement an internal control procedure to ensure that all program income is entered timely within the IDIS system. Prior to drawing down new entitlement funding, the program income general ledger account associated with the grant program should be reviewed and compared to the program income reported within IDIS to ensure all program income is recorded and fully utilized before drawing down additional entitlement funding. Management Response The Authority implemented a new policy to track and document program income: a. Upon receipt of program income, it shall be entered individually into IDIS and assigned to an activity or activities within fifteen (15) calendar days of receipt. b. At the next request for funds for an activity which includes funding from program income, program income shall be used prior to requesting federal funds for the activity. c. The request for federal funds shall be prepared by the Fiscal Officer and reviewed by one of the Assistant Fiscal Officers to determine if program income is being used prior to the request of federal funds. d. If it has been determined and documented that program income is being used prior to the request for federal funds, the request shall be forwarded to the Executive Director for approval. Current Status of Corrective Action Plan This finding has been resolved by management. The new policy was implemented on April 1, 2025.

View Audit 377585

Finding 1166594 (2023-001)

Material Weakness 2023

Redevelopment Authority of the County of Berks

PA

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting § 200.303

2023-001 REPORTING - SIGNIFICANT DEFICIENCY Federal Program Community Development Block Grant/Entitlement Grant ALN 14.218; passed through the County of Berks Emergency Rental Assistance ALN 21.023; passed through the County of Berks Condition/Cause The auditee did not have any documented or impleme...

2023-001 REPORTING - SIGNIFICANT DEFICIENCY Federal Program Community Development Block Grant/Entitlement Grant ALN 14.218; passed through the County of Berks Emergency Rental Assistance ALN 21.023; passed through the County of Berks Condition/Cause The auditee did not have any documented or implemented internal controls over the review of federal program reporting requirements. Reports were prepared and submitted without documentation of supervisory review or verification of accuracy and completeness. Management did not design or implement procedures to review reports prior to submission, relying solely on the preparer's knowledge without formal oversight. Recommendation We recommend that all grant reports are reviewed by a person independent of the preparer who has knowledge of the grant requirements. This review should include comparing the amounts reported to detailed support for accuracy. We also recommend the Authority review its recordkeeping procedures for documentation related to grant reporting. There should be a process in place to ensure all required documentation is maintained and filed in an orderly system that allows the Authority to locate and provide documentation when required. Management Response In general, management agrees with the finding. It should be noted that internal controls for supervisory review of reporting requirements were in place but were not written controls or processes. Reporting for the CDBG Program is accomplished through the preparation of the annual Comprehensive Annual Performance and Evaluation Repo11 CAPER). Written policies and procedures for the CAPER have been developed. Reporting for the Emergency Rental Assistance Program is accomplished through an online reporting system of the U.S. Treasury and by email to the Pennsylvania Human Services Department. Written policies and procedures have been developed.

View Audit 377585

Finding 1166494 (2023-007)

Material Weakness 2023

County of Plumas

CA

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

Schools and Roads - Grants to States (Compliance) We recommend that the County establish and implement formal procedures to ensure public notices related to Title III funds are issued and documented at least 45 days prior to any obligation or expenditure. This process should include clear assignment...

Schools and Roads - Grants to States (Compliance) We recommend that the County establish and implement formal procedures to ensure public notices related to Title III funds are issued and documented at least 45 days prior to any obligation or expenditure. This process should include clear assignment of responsibilities and retention of documentation as part of grant compliance records. Management's Response: The County concurs with the findings. Responsible Individual: Allen Hisky, Clerk of the Board of Supervisors; Corrective Action Plan: The Clerk of the Board will ensure that sufficient internal controls are in place for proper notification of Public Hearings at least 45 days proper to obligation or expenditures. This process should include clear assignment of responsibilities and retention of documentation as part of grant compliance records; Anticipated Completion Date: June 30, 2026.

View Audit 377492

Finding 1166493 (2023-008)

Material Weakness 2023

County of Plumas

CA

Subrecipient Monitoring Cash Management Reporting § 200.327 § 200.328

Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Compliance) We recommend that management establish and enforce procedures to ensure all required federal financial and progress reports are submitted by the applicable due dates. Management's Response: The County concurs with the fi...

Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Compliance) We recommend that management establish and enforce procedures to ensure all required federal financial and progress reports are submitted by the applicable due dates. Management's Response: The County concurs with the findings; Responsible Individual: Nicole Reinert, Public Health Director; Corrective Action Plan: Administrative staff will schedule out all required report dates in the Outlook calendar at least three weeks before the due date to keep responsible parties informed of deadlines. These set reminders will ensure timely submissions. The Department Head will review the submission process to eliminate congested workflow to ensure efficiency and identify any tasks that can be automated or improved. Regular check-ins will take place to discuss the status of ongoing reports.; Anticipated Completion Date: June 30, 2026.

View Audit 377492

Finding 1166491 (2023-006)

Material Weakness 2023

County of Plumas

CA

Subrecipient Monitoring Eligibility Reporting § 200.328

Schools and Roads - Grants to States (Compliance) We recommend that the County establish internal control procedures to ensure that required certifications for Title III expenditures and unobligated funds are completed, reviewed, and submitted timely in accordance with federal requirements. Manageme...

Schools and Roads - Grants to States (Compliance) We recommend that the County establish internal control procedures to ensure that required certifications for Title III expenditures and unobligated funds are completed, reviewed, and submitted timely in accordance with federal requirements. Management's Response: The County concurs with the findings. Responsible Individual: Allen Hisky, Clerk of the board of Supervisors; Corrective Action Plan: The Clerk of the Board will ensure that sufficient internal controls are in place for proper notification of Certification Title III Expenditures and Unobligated Funds by statutory deadline. This process should include clear assignment to responsibilities and retention of documentation as part of grant compliance records.; Anticipated Completion Date: June 30, 2026.

View Audit 377492

Finding 1166490 (2023-001)

Material Weakness 2023

County of Plumas

CA

Reporting

Schools and roads - Grants to States, Highway Planning and Construction, Coronavirus State and Local Fiscal Recovery Funds, Epidemiology and Laboratory Capacity for Infectious Diseases (ELC), Foster Care - Title IV-E, and Medical Assistance Program. We recommend that the County departments provide t...

Schools and roads - Grants to States, Highway Planning and Construction, Coronavirus State and Local Fiscal Recovery Funds, Epidemiology and Laboratory Capacity for Infectious Diseases (ELC), Foster Care - Title IV-E, and Medical Assistance Program. We recommend that the County departments provide the County Auditor with accurate Federal expenditure information prior to the beginning of audit fieldwork. Management's Response: The County concurs with the findings. Responsible Individuals: 10.665 and 20.205: Rob Thorman, Director of Public Works and Damien Frank, Administrative Services Officer; 10.665: Kevin Goss, Chairman of the Board of Supervisors; 21.027 and 93.323: Nicole Reinert, Director of Public Health and DeLena Jones, Administrative Services Officer; 93.658 and 93.778: Jennifer Bromby, Interim Social Services Director/Staff Service Manager. Corrective Action Plan: Each department will be required to run a trial balance report and identify the federal expenditures by program. The departments will be required to track each program and either within the financial system or on an Excel spreadsheet and at the end of the fiscal year use the method of backing out expenses from previous SEFA reporting and adding any expenses from the subsequent fiscal year to the prior fiscal year up to 60 days. The department tis required to maintain the reconciliation spreadsheet on a monthly or quarterly basis depending on the volume of the program. The department fiscal officer will be required to review with the department head, and both the department fiscal officer and department head will need to sign off on the SEFA information provided to the Auditor-Controller, along with proper back and the program trial balance at the end of the fiscal year prior to start of the external auditor fieldwork. Anticipated Completion Date: The Auditor-Controller will hold a mandatory training course in January of 2026 for fiscal officers and department heads of the above-mentioned findings.

View Audit 377492

Finding 1166456 (2023-001)

Material Weakness 2023

Eastern Kentucky PRIDE, Inc.

KY

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

Views of Responsible Officials and Planned Corrective Actions: PRIDE agrees with the finding and recommended procedures will be implemented.

View Audit 377479

Finding 1166337 (2023-004)

Material Weakness 2023

Wayne County, Missouri

MO

Procurement, Suspension & Debarment Subrecipient Monitoring

The County will ensure vendors are not suspended or debarred in the future.

View Audit 377436

Finding 1166325 (2023-009)

Material Weakness 2023

Dorchester County, Maryland

MD

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

The County will implement procedures to ensure the review and approval of the monthly report is documented.

View Audit 377392

Finding 1166324 (2023-008)

Material Weakness 2023

Dorchester County, Maryland

MD

Eligibility Matching / Level of Effort / Earmarking § 200.303

The County will implement procedures to ensure the approval process is documented.

View Audit 377392

Finding 1166323 (2023-007)

Material Weakness 2023

Dorchester County, Maryland

MD

Subrecipient Monitoring § 200.303 § 200.332

The County will implement a new policy to ensure all subrecipients that are given federal funds of $25,000 or more are properly monitored.

View Audit 377392

Corrective Action Plans

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