Corrective Action Plans

Finding 1224733 (2025-003)

Material Weakness 2025

OH

Matching / Level of Effort / Earmarking Subrecipient Monitoring § 200.303 § 200.306

The Airport plans to complete a credit memo for all the amounts drawn down on the 2025 grants and reissue a pay request for the remaining federal share on the eligible expenses to be in accordance with the match in the grant agreements.

View Audit 407924

Finding 1224721 (2025-002)

Material Weakness 2025

CITY OF MORGAN

MN

Internal Control / Segregation of Duties

Segregation of Duties

View Audit 407920

Finding 1224721 (2025-002)

Material Weakness 2025

CITY OF MORGAN

MN

Internal Control / Segregation of Duties

Name of Contact Person: Lisa Steffl, City Clerk

View Audit 407920

Finding 1224721 (2025-002)

Material Weakness 2025

CITY OF MORGAN

MN

Internal Control / Segregation of Duties

Correction Action: The finance related tasks will be separated as much as possible and alternative controls will be used to compensate for the lack of separation. The City Council will become more involved in providing some of these controls.

View Audit 407920

Finding 1224721 (2025-002)

Material Weakness 2025

CITY OF MORGAN

MN

Internal Control / Segregation of Duties

Proposed Completion Date: The City Council will implement the above procedures immediately.

View Audit 407920

Finding 1224718 (2025-001)

Material Weakness 2025

CITY OF MORGAN

MN

Auditor Prepared Financial Statements

View Audit 407920

Finding 1224718 (2025-001)

Material Weakness 2025

CITY OF MORGAN

MN

Name of Contact Person: Lisa Steffl, City Clerk

View Audit 407920

Finding 1224718 (2025-001)

Material Weakness 2025

CITY OF MORGAN

MN

Correction Action: The City Clerk will continue to review GASB pronouncements and GASB disclosure checklists to ensure she is aware of financial statement requirements and new pronouncements.

View Audit 407920

Finding 1224718 (2025-001)

Material Weakness 2025

CITY OF MORGAN

MN

Proposed Completion Date: The City Council will implement the above procedures immediately.

View Audit 407920

Finding 1224713 (2025-002)

Material Weakness 2025

Kankakee School District 111

IL

Procurement, Suspension & Debarment § 200.320

Corrective Action Plan Finding No.: 2025 - 002 Condition: The District procured $885,950 of services from a food service vendor and did not follow the formal methods of procurement outlined in 2 CFR 200.320(b)(2), 105 ILCS 5/10-20.21, and their established procurement policy as they did not procure ...

Corrective Action Plan Finding No.: 2025 - 002 Condition: The District procured $885,950 of services from a food service vendor and did not follow the formal methods of procurement outlined in 2 CFR 200.320(b)(2), 105 ILCS 5/10-20.21, and their established procurement policy as they did not procure the services through a competitive request for proposal process. Plan: While the district did obtain a two-year waiver from the Illinois State Board of Education regarding Food Service procurement regulations, management concurs with the finding. The District will strengthen its procurement procedures to ensure purchases subject to the Uniform Guidance procurement requirements are conducted using the appropriate procurement method and adequately documented. Management will provide additional training to personnel responsible for federal procurements and implement a review process to verify compliance with federal procurement requirements prior to contract award. These procedures will be implemented for all applicable procurements beginning in fiscal year 2027. Anticipated Date of Completion: August 30, 2026 Name of Contact Person: Mr. Harrison Neal, Assistant Superintendent of Business and Finance

View Audit 407910

Finding 1224644 (2025-002)

Material Weakness 2025

City of Chicago

IL

Procurement, Suspension & Debarment Reporting Subrecipient Monitoring

FINDING 2025-002 This is Department of Family and Support Services’ first Single Audit where FFATA reporting was reviewed under Sam.gov rather than FSRS.gov. The Sam.gov system does not keep records of historical changes/ updates to published reports. Every time a report is modified, the date of sub...

FINDING 2025-002 This is Department of Family and Support Services’ first Single Audit where FFATA reporting was reviewed under Sam.gov rather than FSRS.gov. The Sam.gov system does not keep records of historical changes/ updates to published reports. Every time a report is modified, the date of submission is updated to reflect the current date. Effective August 1, 2026, DFSS will track and document changes or updates made to a FFATA report by using screenshots. Additionally, DFSS will update FFATA reports when the original contract and budget allocation is modified. DFSS will submit separate FFATA reports for each program funded by contract number. The FFATA reports will be delineated in Sam.gov by the purchase order number and the release number using the new Subaward ID format “PO#_Release#.” Chief Research Analyst Kaur from DFSS’ Grants unit will be responsible for ensuring the changes are implemented for FFATA reporting. Deputy Commissioner of Contracts, IT, and Programmatic Monitoring Givens will be responsible for providing oversight and monitoring the process with the Department of Family and Support Services (DFSS) Contracts staff to add the sub awardee’s UEI to the contract for all future amendments and new contracts is implemented by August 1, 2026.

View Audit 407901

Finding 1224641 (2025-001)

Material Weakness 2025

The Center for Advanced Defense Studies Inc.

DC

Allowable Costs / Cost Principles Subrecipient Monitoring

The Center for Advanced Defense Studies (C4ADS) acknowledges the finding related to disbursement approvals and the instance where required pre-disbursement authorization was not documented in the system. Existing C4ADS policy requires the approval of the budget manager before finance team approval o...

The Center for Advanced Defense Studies (C4ADS) acknowledges the finding related to disbursement approvals and the instance where required pre-disbursement authorization was not documented in the system. Existing C4ADS policy requires the approval of the budget manager before finance team approval on all credit card transactions — this sequence ensures that someone with operational authority verifies necessity and project relevance before charges are recorded. The accounting manager, as the administrator of the credit card online portal, has the ability to override/approve out of sequence with approval from the Senior Director of Operations. Due to staff turnover, the accounting manager inadvertently approved a charge out of cycle. Divvy does not permit retroactive correction of approval order and the accounting manager failed to appropriately document the event. As a result of this finding, C4ADS has implemented the following corrective actions: ● Strengthen Approval Controls: C4ADS added an additional review step where the Director of Finance and the Senior Director of Operations review all credit card charges to ensure all charges have two approvers. In cases where the charge has one approver, the Director of Finance confirms with the Senior Director of Operations that the final coding is appropriate prior month ending billing and month end reporting. ● Enhance Documentation and Monitoring: To demonstrate review, the Director of Finance communicates any anomalies to the Senior Director of Operations via Monday.com, C4ADS’ online ticket and tracking system. The Senior Director of Operations approval, or rejection, is logged in that system. ● Staff Training and Reinforcement: Additional training has been provided to the accounting department related to the approval override system and the appropriate documentation. These measures have been implemented and incorporated into ongoing financial processes to ensure all disbursements are properly authorized and documented.

View Audit 407898

Finding 1224634 (2025-004)

Material Weakness 2025

CITY OF PETERSBURG

WV

Reporting Internal Control / Segregation of Duties

2025-004 Uniform Guidance Audit Submission CONTACT PERSON: Cing Huai, Treasurer ANTICIPATED COMPLETION DATE: June 30, 2027 VIEW OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS: The City will work to develop and adopt controls to ensure that the year-end financial statements are prepared in a...

2025-004 Uniform Guidance Audit Submission CONTACT PERSON: Cing Huai, Treasurer ANTICIPATED COMPLETION DATE: June 30, 2027 VIEW OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS: The City will work to develop and adopt controls to ensure that the year-end financial statements are prepared in a timely manner so as to facilitate a timely audit submission as set forth in the Uniform Guidance.

View Audit 407893

Finding 1224631 (2025-003)

Material Weakness 2025

Aptakisic-Tripp Community Consolidated School District 102

IL

Allowable Costs / Cost Principles § 200.302 § 200.303

Finding No.: 2025-003 Condition: During our testing of expenditures submitted for reimbursement under the Special Education Grant, we noted that expenditures included in reimbursement requests were difficult to reconcile to supporting documentation and the District's accounting records. Specifically...

Finding No.: 2025-003 Condition: During our testing of expenditures submitted for reimbursement under the Special Education Grant, we noted that expenditures included in reimbursement requests were difficult to reconcile to supporting documentation and the District's accounting records. Specifically, amounts recorded within the general ledger for certain purchased services and supplies and materials expenditures were incomplete and could not independently support the amounts claimed for reimbursement. District personnel were required to provide additional grant tracking schedules and other supporting records to reconcile the expenditures reported for reimbursement. Plan: Management agrees with the finding and will strengthen grant tracking and reconciliation procedures to ensure expenditures submitted for reimbursement are fully supported, accurately recorded in the general ledger, and readily traceable to the underlying documentation. Anticipated Date of Completion: 6/30/2027 Name of Contact Person: Scott, Assistant Superintendent for Business Services/CSBO Management Response: N/A

View Audit 407892

Finding 1224629 (2025-001)

Material Weakness 2025

City of St. Helena

CA

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting § 200.512

Management Response: Management agrees with the finding. The reporting package and Data Collection Form were not submitted by the required deadline. While the delay was primarily the result of significant staffing shortages within the Finance Department during the reporting period, management recogn...

Management Response: Management agrees with the finding. The reporting package and Data Collection Form were not submitted by the required deadline. While the delay was primarily the result of significant staffing shortages within the Finance Department during the reporting period, management recognizes that it remained the City's responsibility to ensure timely compliance with federal reporting requirements. To address this issue, the City will implement a formal tracking process for all federal reporting requirements, maintain a compliance calendar, clearly assign responsibility for monitoring submission deadlines, and require management review prior to submission. These procedures are expected to strengthen internal controls, improve oversight of compliance deadlines, and ensure timely submission of future reporting packages in accordance with Uniform Guidance requirements. Anticipated Completion Date: 06/30/2026 Responsible Person: Mandy Kellogg, Administrative Services Director

View Audit 407888

Finding 1224628 (2025-004)

Material Weakness 2025

City of Echo

OR

Internal Control / Segregation of Duties

Lack of Segregation of Duties Condition Found: The City has a limited number of office personnel, which prevents an ideal segregation of duties for controls over financial reporting. Planned Corrective Action: Due to limited staffing, the City is unable to fully segregate duties. To mitigate the ass...

Lack of Segregation of Duties Condition Found: The City has a limited number of office personnel, which prevents an ideal segregation of duties for controls over financial reporting. Planned Corrective Action: Due to limited staffing, the City is unable to fully segregate duties. To mitigate the associated risks, management, the Mayor, and the City Council will continue to provide oversight of financial activities. This includes review of financial reports, bank reconciliations, and other key accounting records. The City will also consider enhancing documentation of oversight and review procedures where feasible. Anticipated Completion Date: Ongoing – oversight activities performed throughout the fiscal year. Responsible Official: City Administrator / Finance Officer

View Audit 407886

Finding 1224627 (2025-003)

Material Weakness 2025

City of Echo

OR

Internal Control / Segregation of Duties

Finding 2025-001 & 2025-003 – Preparation of the Financial Statements Condition Found: The City does not have a system of internal controls that would enable management to conclude the financial statements and related disclosures are complete and presented in accordance with the generally accepted a...

Finding 2025-001 & 2025-003 – Preparation of the Financial Statements Condition Found: The City does not have a system of internal controls that would enable management to conclude the financial statements and related disclosures are complete and presented in accordance with the generally accepted accounting principles which could lead to material errors that may not be identified and corrected by the City. As such, management requested external auditor to prepare a draft of the financial statements, including the related footnote disclosures. Planned Corrective Action: The City will continue to rely on its external auditors to prepare the draft financial statements and related footnote disclosures due to cost and staffing considerations. Management will review the completed financial statements and disclosures provided by the auditors and accept responsibility for their accuracy and completeness prior to issuance. Anticipated Completion Date: Ongoing – implemented annually as part of the year-end financial reporting process. Responsible Official: City Administrator / Finance Officer

View Audit 407886

Finding 1224621 (2025-002)

Material Weakness 2025

City of Greenwood

IN

Procurement, Suspension & Debarment § 200.214

Subject: 2025-002 Material Weakness and Noncompliance – Procurement and Suspension and Debarment (Repeat Finding 2024-002) Federal Agency: Department of the Treasury Federal Program: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Compliance Requirement: Procureme...

Subject: 2025-002 Material Weakness and Noncompliance – Procurement and Suspension and Debarment (Repeat Finding 2024-002) Federal Agency: Department of the Treasury Federal Program: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Compliance Requirement: Procurement and Suspension and Debarment Audit Finding: Material Weakness and Noncompliance – Procurement and Suspension and Debarment Recommendation: We recommend the City ensure suspension and debarment checks are performed on all CSLFRF transactions prior to payment to new vendors and documented appropriately. Planned Corrective Action: The City agreed with the recommendation and plans to implement corrective action plan by December 31, 2026. City staff are in the process of updating internal policies to ensure that suspension and debarment checks are performed on all CSLFRF transactions prior to payment to vendors and documented appropriately.

View Audit 407860

Finding 1224600 (2025-001)

Material Weakness 2025

City of Cleveland

OH

Reporting § 200.329

The Department of Community Development will implement the following corrective measures using existing systems, including exploring the capabilities of Amplifund, the City’s grant management software, to address the finding and to establish a durable compliance framework for all federal grant repor...

The Department of Community Development will implement the following corrective measures using existing systems, including exploring the capabilities of Amplifund, the City’s grant management software, to address the finding and to establish a durable compliance framework for all federal grant reporting obligations: 1. Designation of a Federal Grants Compliance Officer;2. Staff Training and Cross-Training;3. Grants Management and Reporting Calendar Reminders;4. Federal Portal Access Redundancy and Technical Escalation Protocol; and5. Internal Compliance Audits.

View Audit 407851

Finding 1224599 (2025-003)

Material Weakness 2025

Dakota County

MN

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

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Supplemental Nutrition Assistance Program Cluster & Medical Assistance Assistance Listing Numbers: 10.561 and 93.778 Federal Award Identification Numbers and Years: 252MN101S2514 – 2025 & 2505MN5ADM – 2025 Passed Thro...

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Supplemental Nutrition Assistance Program Cluster & Medical Assistance Assistance Listing Numbers: 10.561 and 93.778 Federal Award Identification Numbers and Years: 252MN101S2514 – 2025 & 2505MN5ADM – 2025 Passed Through Entity: Minnesota Department of Human Services Pass Through Number: H55250010 & H58260061 & H55255048 Compliance Requirement: Allowable Activities Award Period: 2025 Recommendation: We recommend that the County review its procedures and control to ensure all RMS listings sent to the State properly exclude those necessary individuals no longer working in the programs. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The County will increase coordination with human resources to obtain data on employee turnover as timely as possible and also ensure that the listings are reviewed prior to submission going forward. Name of the contact person responsible for corrective action: Tiffinie Miller, Deputy Director of Employment & Economic Assistance Planned completion date for corrective action plan: December 31, 2026

View Audit 407848

Finding 1224598 (2025-002)

Material Weakness 2025

Dakota County

MN

Material Weakness Reporting Internal Control / Segregation of Duties § 200.303

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Numbers: 93.778 Federal Award Identification Numbers and Years: 2505MN5ADM – 2025 Passed Through Entity: Minnesota Department of Human Services Pass Through Number: H55255048 Comp...

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Numbers: 93.778 Federal Award Identification Numbers and Years: 2505MN5ADM – 2025 Passed Through Entity: Minnesota Department of Human Services Pass Through Number: H55255048 Compliance Requirement: Special Provisions Award Period: 2025 Recommendation: We recommend that the County reviews its polices and controls to ensure there is a formally documented control that ensures all required training of LCTS fiscal site contacts is completed and the documentation of the completions of the training is retained. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The County will share the Minnesota DHS previously recorded “LCTS Fiscal & Cost Schedule” training video with all new Fiscal Site Contacts that prepare cost schedules. County staff will then follow-up with the new Fiscal Site Contacts with a brief quiz to ensure they watched the training video and know how to capture only applicable costs in the cost schedule reports. Then, the LCTS Training Verification Form will be completed, signed by the applicable parties, and emailed to the LCTS Project Manager at Minnesota DHS. The communications sharing the training video, responses to the brief quiz, and LCTS Training Verification Form will be maintained as documentation of the completion of the required trainings. Name of the contact person responsible for corrective action: Lucas Chase, Audit Manager Planned completion date for corrective action plan: December 31, 2026

View Audit 407848

Finding 1224595 (2025-001)

Material Weakness 2025

Dakota County

MN

Procurement, Suspension & Debarment § 200.303 § 200.320

Federal Agency: U.S. Department of Agriculture Federal Program Name: Supplemental Nutrition Assistance Program Cluster Assistance Listing Number: 10.561 Federal Award Identification Number and Year: 252MN101S2514 – 2025 Passed Through Entity: Minnesota Department of Human Services Pass Through Numbe...

Federal Agency: U.S. Department of Agriculture Federal Program Name: Supplemental Nutrition Assistance Program Cluster Assistance Listing Number: 10.561 Federal Award Identification Number and Year: 252MN101S2514 – 2025 Passed Through Entity: Minnesota Department of Human Services Pass Through Number: H55250010 and H58260061 Compliance Requirement: Procurement Award Period: 2025 Recommendation: We recommend the County follow their federal purchasing policy in all their federal programs and retain documentation of that process occurring. As necessary, the County may need to add internal controls that are specific to each program to ensure this properly occurs. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The County will continue to work with program managers to understand and adhere to federal purchasing policies. Name of the contact person responsible for corrective action: Dana DeMaster, Director of Employment & Economic Assistance Planned completion date for corrective action plan: December 31, 2026

View Audit 407848

Finding 1224593 (2025-001)

Material Weakness 2025

Honor Ehg INC

NY

Allowable Costs / Cost Principles Reporting § 200.402

The Administration of HONOR acknowledges the condition identified in the 2025 Financial Audit concerning the lack of allocation documentation. The following response outlines the steps the HONOR Administration, and Management will take to address these issues and prevent recurrence. During the 2025 ...

The Administration of HONOR acknowledges the condition identified in the 2025 Financial Audit concerning the lack of allocation documentation. The following response outlines the steps the HONOR Administration, and Management will take to address these issues and prevent recurrence. During the 2025 audit process, RBT identified the following condition: “Allocation of allowable costs were not properly documented.” HONOR Chief Financial Officer, along with the Finance Director, reviewed the condition and implemented the following corrective measure: -Ensure source documents are documented with G/L code, cost center and allocation method, if one is used. Documentation will be reviewed for completeness by the Staff Accountant. This will add an additional layer of documentation review prior to month end close. HONOR’s Chief Financial Officer along with the finance team take this audit finding seriously and are committed to strengthening internal controls to prevent future incidents. The steps outlined above will help us maintain compliance and ensure the proper use of resources. HONOR thanks RBT for their due diligence in bringing this matter to our attention.

View Audit 407847

Finding 1224592 (2025-002)

Material Weakness 2025

City of Spring Hill

TN

Allowable Costs / Cost Principles Cash Management Reporting

Department of Homeland Security - Federal Emergency Management Agency (FEMA) Staffing for Adequate Fire and Emergency Response (SAFER) - CFDA No.97.083 Recommendation: The City should provide training for the grant administrator and/or include an additional review by individual that has been fully t...

Department of Homeland Security - Federal Emergency Management Agency (FEMA) Staffing for Adequate Fire and Emergency Response (SAFER) - CFDA No.97.083 Recommendation: The City should provide training for the grant administrator and/or include an additional review by individual that has been fully trained on the compliance requirements of the grant. The internal control process should include a formal way to document the review and approval of Fire Safety salary costs charged to the grant to provide evidence that internal controls are effectively designed and implemented and functioning in a timely manner throughout the year. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned and taken in response to finding: The City has authorized a full-time grants specialist position within the Finance Department to oversee the administration of grants separate from the programming department. The City will strengthen internal controls over grant compliance by implementing formal policies and procedures for allowable costs, documentation, and review. All grant expenditures will be reviewed and approved by Finance prior to submission, with supporting documentation maintained for eligibility determinations. Name(s) of the contact person(s) responsible for corrective action: Rebecca Holden Planned completion date for corrective action plan: 6/30/2026

View Audit 407845

Finding 1224591 (2025-002)

Material Weakness 2025

Wisconsin Rural Water Association, Inc.

WI

Reporting

The Organization is aware that their staff does not have a process to prepare financial statements, schedule of expenditures of federal awards, and related notes in accordance with GAAP. The Organization will continue to make this decision on a cost/benefit basis and have auditors assist in preparin...

The Organization is aware that their staff does not have a process to prepare financial statements, schedule of expenditures of federal awards, and related notes in accordance with GAAP. The Organization will continue to make this decision on a cost/benefit basis and have auditors assist in preparing the financial statements and related notes. Management does review the financial statements and the schedule of expenditures of federal awards and compares to the Organization’s financial records for completeness and accuracy and accepts responsibility for those financial statements and schedule of expenditures of federal awards.

View Audit 407844

Corrective Action Plans

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