Corrective Action Plans

Finding 1201191 (2025-007)

Material Weakness 2025

CT

2025-007 Material Weakness and Noncompliance, Equipment and Real Property Management (Repeat Finding 2024-007) Audit Finding: Non-federal entities other than states must follow 2 CFR sections 200.313 (c) through (e) which require that property records must be maintained that include a description of...

2025-007 Material Weakness and Noncompliance, Equipment and Real Property Management (Repeat Finding 2024-007) Audit Finding: Non-federal entities other than states must follow 2 CFR sections 200.313 (c) through (e) which require that property records must be maintained that include a description of the property, a serial number or other identification number; the source of funding for the property, who holds the tile, the acquisition date, cost of property and other info. The Town could not provide property records including all required information as indicated in the 2 CFR section 200.313 (d)(1). The Town did not perform a physical inventory of the property. Corrective Action Taken: Management acknowledges the requirement for periodic physical inventory of federally funded assets. Given that such purchases are infrequent and currently limited to furniture used daily, we have determined that a full-scale inventory is not costeffective at this time. The assets remain in high-use public areas, providing constant visual verification of their existence. Management will formalize a physical inventory process should the volume or value of federally funded assets reach a material threshold. Anticipated Completion Date: Not applicable. Name and Phone # of Person Responsible for Implementation Joan Lynch, Comptroller, 203-622-2226

View Audit 395857

Finding 1201190 (2025-006)

Material Weakness 2025

Town of Greenwich, Connecticut

CT

2025-006 Material Weakness and Noncompliance, Suspension and Debarment (Repeat Finding 2024-005) Audit Finding: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with provisions of procurement, suspension, and debarment...

2025-006 Material Weakness and Noncompliance, Suspension and Debarment (Repeat Finding 2024-005) Audit Finding: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with provisions of procurement, suspension, and debarment. Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Documentation that such a verification was done must be maintained. The Town did not have documentation to support verification that three vendors were not excluded from federal contract due to debarment or suspension. Corrective Action Taken: The Town and Board of Education (BOE) have enhanced procurement controls to ensure suspension and debarment verifications are documented in accordance with 2 CFR 200.214. BOE’s Procurement Department routinely reviews SAM.gov to verify suspension and debarment status for all contracts, regardless of the funding source. Moving forward, a verification sheet will be included with all contract documentation. Additionally, BOE personnel involved in the procurement process have received training on applicable federal compliance requirements. The Procurement Department will also require vendors to complete suspension and debarment certification forms, which will be maintained within the Munis system by the Accounting Department. Anticipated Completion Date: In Process as of July 2025. Name and Phone # of Person Responsible for Implementation Joan Lynch, Comptroller, 203-622-2226

View Audit 395857

Finding 1201184 (2025-005)

Material Weakness 2025

Town of Greenwich, Connecticut

CT

2025-005 – Significant Deficiency and Noncompliance, Completeness and Accuracy of Schedule of Expenditures of Federal and State Awards (Repeat Finding 2024-001. Severity downgraded from material weakness to significant deficiency due to corrective actions implemented.) Audit Finding: There were seve...

2025-005 – Significant Deficiency and Noncompliance, Completeness and Accuracy of Schedule of Expenditures of Federal and State Awards (Repeat Finding 2024-001. Severity downgraded from material weakness to significant deficiency due to corrective actions implemented.) Audit Finding: There were several required adjustments and corrections to the Schedule of Expenditures of Federal Awards (SEFA) and the Schedule of Expenditure of State Financial Assistance (SESFA) as follows: (1) Six federal programs were missing or had an incorrect assistance listing number. (2) One program improperly included on the SESFA that was moved to the SEFA. (3) One program improperly included under the incorrect oversight agency. (4) One program improperly reported as a direct grant. (5) One state program requiring adjustment to decrease the reported expenditures by $250,481. (6) Three programs improperly included as exempt programs. (7) One program had an incorrect state grant ID. Corrective Action Taken: The Town Finance Department has placed an emphasis on timely tracking and reporting of grants, as can be seen from the improvement from material weakness to significant deficiency. The SEFA and SESFA will be prepared throughout the year by Town Finance, who will also maintain copies of all grant agreements. All positions in the BOE Finance Department and Town Finance have now been filled, and the Director of Finance at the BOE has implemented monthly reconciliation procedures. From the Town side, the reconciliations between the GAAP financial statements and amounts reported on the SEFA and SESA will be overseen by the Deputy Comptroller. The Deputy Comptroller and BOE Director of Finance meet regularly to discuss updates and issues and will reconcile the June 30, 2026 reports in the first quarter of FY2027. Anticipated Completion Date: In Process as of July 2025 Name and Phone # of Person Responsible for Implementation

View Audit 395857

Finding 1201175 (2025-005)

Material Weakness 2025

Virginia Housing Development Authority

VA

Housing Voucher Cluster – Assistance Listing No. 14.871/14.879/14.EHV – Housing Assistance Payments Recommendation: We recommend the Authority strengthen its controls to ensure proper documentation is maintained and that HAP contracts, payment standards, and HAP amounts are accurately applied and re...

Housing Voucher Cluster – Assistance Listing No. 14.871/14.879/14.EHV – Housing Assistance Payments Recommendation: We recommend the Authority strengthen its controls to ensure proper documentation is maintained and that HAP contracts, payment standards, and HAP amounts are accurately applied and reviewed for compliance by its Agents. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Virginia Housing is evaluating enhancements to its quality control framework. This evaluation includes reviewing best practices from peer agencies with strong compliance outcomes and consistent audit performance. Many of these agencies utilize more structured oversight models that provide independent file review functions while maintaining coordination with program operations. Virginia Housing is currently assessing options that may include: - Expanding centralized quality control review functions - Increasing file sampling and review throughout the year - Implementing additional HAP calculation validation steps - Enhancing payment standard cross-check procedures Implementation details will be finalized following this evaluation process and may include structural adjustments, enhanced tools, or expanded oversight protocols. Name of the contact person responsible for corrective action: Yilla Smith, Director, Housing Opportunity Programs and Initiatives Planned completion date for corrective action plan: December 31, 2026

View Audit 395856

Finding 1201172 (2025-004)

Material Weakness 2025

Virginia Housing Development Authority

VA

Housing Voucher Cluster – Assistance Listing No. 14.871/14.879/14.EHV – Waiting List Recommendation: We recommend the Authority review its Agent’s internal controls over the waiting list process to ensure all documentation is maintained at the time each applicant is selected from the waiting list an...

Housing Voucher Cluster – Assistance Listing No. 14.871/14.879/14.EHV – Waiting List Recommendation: We recommend the Authority review its Agent’s internal controls over the waiting list process to ensure all documentation is maintained at the time each applicant is selected from the waiting list and that applicants are added to the waitlist accurately. We recommend the Authority implements uniform documentation standards and requirements across all local housing agencies (LHAs) and agents of the Authority. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Authority recognizes the need to strengthen documentation controls at the point of applicant selection. As part of its broader compliance review, the Authority is evaluating improvements to waiting list procedures. This includes reviewing documentation requirements, selection verification protocols, and file completeness standards. Enhancements under consideration include: - Providing training to LHAs on waiting list management, referral processes, extension documentation, and documentation retention requirements - Incorporating a quality control (QC) review of referrals to special purpose voucher programs to ensure documentation, eligibility verification, and notification records are consistently maintained - Strengthening monitoring procedures to validate that required documentation is retained at the time of selection Name of the contact person responsible for corrective action: Yilla Smith, Director, Housing Opportunity Programs and Initiatives Planned completion date for corrective action plan: December 31, 2026

View Audit 395856

Finding 1201169 (2025-003)

Material Weakness 2025

Virginia Housing Development Authority

VA

Housing Voucher Cluster – Assistance Listing No. 14.871/14.879/14.EHV – HQS Annual and Failed Inspections Recommendation: We recommend that the Authority reviews its Agent’s processes related to annual and failed HQS inspections to ensure that inspections are completed in a timely manner and in comp...

Housing Voucher Cluster – Assistance Listing No. 14.871/14.879/14.EHV – HQS Annual and Failed Inspections Recommendation: We recommend that the Authority reviews its Agent’s processes related to annual and failed HQS inspections to ensure that inspections are completed in a timely manner and in compliance with HUD and the Authority’s requirements. We further recommend that the Authority review its Agent’s procedures to ensure appropriate follow up is performed to confirm that tenants or landlords make required corrections timely, or that housing assistance payments (HAP) are properly abated for the unit until such corrections are made. We recommend the Authority work with its Agent’s to alleviate any inspector shortage. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Authority has taken proactive steps to enhance its inspection process to ensure compliance with HUD requirements. As part of these efforts, the Authority has contracted with a third-party vendor to manage all inspection activities statewide. This partnership is designed to improve the efficiency, consistency, and timeliness of inspections, strengthen follow-up procedures for failed inspections, and support more uniform enforcement of abatement requirements when necessary. Full implementation of the third-party inspection services occurred on April 1, 2025, approximately two months prior to the end of the audit reporting period. While the timing limited the impact reflected in this audit cycle, the Authority believes this represents an effective control enhancement. Virginia Housing will continue to monitor inspection timeliness, reinspection compliance, and abatement processing trends to evaluate performance and confirm that this action results in measurable improvement in future audit outcomes. Virginia Housing is evaluating the possibility of implementing a tracking dashboard for inspection timelines and abatement periods and will continue to meet with the third-party vendor bi-weekly to ensure progress is made. Name of the contact person responsible for corrective action: Yilla Smith, Director, Housing Opportunity Programs and Initiatives

View Audit 395856

Finding 1201166 (2025-002)

Material Weakness 2025

Virginia Housing Development Authority

VA

Housing Voucher Cluster – Assistance Listing No. 14.871/14.879/14.EHV – PIC Submissions Recommendation: We recommend that the Authority review its Agent’s process for uploading data to the PIC system to ensure each HUD-50058 recertification gets submitted timely and accurately. Explanation of disagr...

Housing Voucher Cluster – Assistance Listing No. 14.871/14.879/14.EHV – PIC Submissions Recommendation: We recommend that the Authority review its Agent’s process for uploading data to the PIC system to ensure each HUD-50058 recertification gets submitted timely and accurately. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Authority is currently evaluating improvements to its data submission and reconciliation processes. This evaluation includes reviewing peer agency approaches to transmission monitoring, data verification, and centralized oversight controls. In addition, Virginia Housing has engaged a third-party consultant to assist with PIC submission oversight, reconciliation, and process refinement. The consultant’s involvement has supported a significant reduction in late and missing submissions and is helping to strengthen internal monitoring practices. Name of the contact person responsible for corrective action: Yilla Smith, Director, Housing Opportunity Programs and Initiatives Planned completion date for corrective action plan: September 30, 2026

View Audit 395856

Finding 1201163 (2025-001)

Material Weakness 2025

Virginia Housing Development Authority

VA

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Housing Voucher Cluster – Assistance Listing No. 14.871/14.879/14.EHV – Eligibility Recommendation: We recommend that the Authority review its Agent’s internal controls and policies related to HUD tenant eligibility requirements to ensure that all req...

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Housing Voucher Cluster – Assistance Listing No. 14.871/14.879/14.EHV – Eligibility Recommendation: We recommend that the Authority review its Agent’s internal controls and policies related to HUD tenant eligibility requirements to ensure that all required documentation is obtained and maintained at the time of recertification. We further recommend that the Authority implements uniform documentation standards and requirements across all local housing agencies (LHAs) and agents of the Authority. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Virginia Housing is evaluating enhancements to its quality control framework. This evaluation includes reviewing best practices from peer agencies with strong compliance outcomes and consistent audit performance. Many of these agencies utilize more structured oversight models that provide independent file review functions while maintaining coordination with program operations. Virginia Housing is currently assessing options that may include: - Expanding centralized quality control review functions - Increasing file sampling and review throughout the year - Improving monitoring of HUD-9886 and third-party verification documentation Implementation details will be finalized following this evaluation process and may include structural adjustments, enhanced tools, or expanded oversight protocols. Name of the contact person responsible for corrective action: Yilla Smith, Director, Housing Opportunity Programs and Initiatives Planned completion date for corrective action plan: December 31, 2026

View Audit 395856

Finding 1201160 (2025-002)

Material Weakness 2025

North Central Kansas Special Education Cooperative Interlocal #636

KS

Special Education (IDEA) Cluster – 84.027 – Special Education – Grants to States – Activities Allowed or Unallowed and Unallowable Costs/Cost Principles Condition Supporting documentation for tuition reimbursements did not include a receipt showing the cost per credit hour, which is required to be s...

Special Education (IDEA) Cluster – 84.027 – Special Education – Grants to States – Activities Allowed or Unallowed and Unallowable Costs/Cost Principles Condition Supporting documentation for tuition reimbursements did not include a receipt showing the cost per credit hour, which is required to be submitted as part of its contract with its employees. Recommendation Procedures should be established and implemented to ensure that all supporting documentation be obtained and saved. Comments on the Finding Recommendation NCKSEC agrees with the findings. A procedure has been put in place to assure that receipts are collected from teachers reflecting the cost per credit hour for the amount the teacher is reimbursed. Receipts are collected before payment is issued. Action Taken Receipts are being collected before payment is issued as reimbursement per credit hour. This action began at the start of the 2025-2026 school year.

View Audit 395854

Finding 1201145 (2025-002)

Material Weakness 2025

Tca Health, Inc.

IL

Allowable Costs and Activities Condition: Payroll costs were allocated to grants in a manner inconsistent with the time and effort documentation provided. Recommendation: Management should reinforce the requirement to retain time and effort documentation for all employees that are allocated to multi...

Allowable Costs and Activities Condition: Payroll costs were allocated to grants in a manner inconsistent with the time and effort documentation provided. Recommendation: Management should reinforce the requirement to retain time and effort documentation for all employees that are allocated to multiple grants and implement a review process whereby the allocation percentages used are compared to the employee attestations provided. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: TCA Health is enhancing its time and effort and payroll allocation processes to ensure charges to grants align with documented effort. We are building on our monthly review process for time and effort by formalizing a review in which payroll allocation percentages are compared to signed attestations, with Finance documenting any corrections and follow-up. We are also partnering with HR to ensure all Personnel Action Forms (PAFs) include appropriate grant coding and to require an updated PAF whenever an employee’s grant funding or allocation changes. In addition, TCA Health is implementing an automated integration between ADP and Sage Intacct so that approved timesheets flow directly into payroll and grant reporting, improving accuracy and the audit trail. We will leverage the systems and limit manual entry. Name(s) of the contact person(s) responsible for corrective action: Bob Van Gilder Planned completion date for corrective action plan: 9/1/26 If the U.S. Departments above have questions regarding this plan, please call Veronica Clarke, Chief Executive Office, at 773-928-5090.

View Audit 395842

Finding 1201144 (2025-001)

Material Weakness 2025

Tca Health, Inc.

IL

Special Tests and Provisions Condition: The Organization did not maintain documentation to show that patients had been evaluated for eligibility under its sliding fee scale policy and did not apply sliding fee adjustments consistent with the sliding fee scale assigned. Recommendation: Management sho...

Special Tests and Provisions Condition: The Organization did not maintain documentation to show that patients had been evaluated for eligibility under its sliding fee scale policy and did not apply sliding fee adjustments consistent with the sliding fee scale assigned. Recommendation: Management should continue to provide training and education to front desk staff related to the process for collecting family size and income information, along with inputting it into the electronic medical records. We also recommend enhancing any current internal audits of patient visits to determine all required patient information has been obtained in accordance with TCA’s policies. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: TCA Health is strengthening controls over its sliding fee discount program. Effective FY26 (April 11, 2026), Epic will require entry of family size and income and will apply the appropriate discount based on the approved sliding fee schedule, reducing the risk of missing or incorrect discounts. Staff training on sliding fee policies and Epic workflows has been reinforced and will be refreshed at least quarterly. TCA Health will also conduct monthly audits of encounters to confirm required documentation is on file and discounts are applied in accordance with the sliding fee scale, and will use results to drive targeted follow-up and process improvements. We will increase the audit to include the total population vs. a sample when reviewing. Name(s) of the contact person(s) responsible for corrective action: Samantha O. Mitchell Planned completion date for corrective action plan: 9/1/26

View Audit 395842

Finding 1201139 (2025-001)

Material Weakness 2025

Yucaipa Valley Water District

CA

The District has reviewed the audit finding in coordination with its consultant responsible for preparing the quarterly reports. To address this issue, both the consultant and District staff have implemented enhanced scheduling controls, including the establishment of multiple interim deadlines. The...

The District has reviewed the audit finding in coordination with its consultant responsible for preparing the quarterly reports. To address this issue, both the consultant and District staff have implemented enhanced scheduling controls, including the establishment of multiple interim deadlines. These measures are intended to ensure timely preparation of draft reports, allow sufficient time for internal review and revisions, and support submission of finalized reports in advance of EPA -required deadlines.

View Audit 395839

Finding 1201138 (2025-003)

Material Weakness 2025

University Settlement Society of New York, Inc.

NY

2025-003: Noncompliance with Reporting Requirements The planned corrective action: University Settlement did not submit the SF425 because we had submitted a budget revision to the Office of Head Start and were still awaiting approval. University Settlement did not submit the SF429 because we are cur...

2025-003: Noncompliance with Reporting Requirements The planned corrective action: University Settlement did not submit the SF425 because we had submitted a budget revision to the Office of Head Start and were still awaiting approval. University Settlement did not submit the SF429 because we are currently in discussions with the Office of Head Start regarding the status of federal interest in property owned by USS. We should have communicated in writing to confirm expectations prior to the deadline and submitted the reports accordingly and on time. Going forward, University Settlement will clarify any questions regarding reporting requirements and deadlines in writing to our funder with sufficient time for response prior to a filing deadline. The name(s) of the contact person(s) responsible for corrective action: Lisa Stein, CFO Julia Kagan, Managing Director, Finance The anticipated completion date for the corrective action. 4/30/2026

View Audit 395838

Finding 1201133 (2025-002)

Material Weakness 2025

University Settlement Society of New York, Inc.

NY

2025-002: Noncompliance with Suspension and Debarment Requirements The planned corrective action: Immediate: By 4/30/2026, the Managing Director of Finance, the Director of Accounts Payable and Purchasing, and the CFO will meet with all program managers and review this requirement. Program managers ...

2025-002: Noncompliance with Suspension and Debarment Requirements The planned corrective action: Immediate: By 4/30/2026, the Managing Director of Finance, the Director of Accounts Payable and Purchasing, and the CFO will meet with all program managers and review this requirement. Program managers will review existing vendors paid with federal funds and verify they are not on a suspended or barred list. They will then print this screenshot to document and affirm that the vendor is not prohibited. This documentation will then be attached to a request for payment. This step will be added to the manual check list rolling out by 4/30/26 and provided to all purchasers and approvers. Medium Term: In FY26, University Settlement is reviewing and updating its financial policies and will roll these out for approval and implementation by the close of FY26. There will also be formal communication and training provided to finance and program managers. The name(s) of the contact person(s) responsible for corrective action: Lisa Stein, CFO Julia Kagan, Managing Director, Finance Virginia Viloria, Director, Accounts Payable and Purchasing The anticipated completion date for the corrective action. 6/30/2026

View Audit 395838

Finding 1201132 (2025-001)

Material Weakness 2025

University Settlement Society of New York, Inc.

NY

2025-001: Noncompliance with Competitive Bidding Requirements. The planned corrective action: Immediate: By 4/30/2026, the Managing Director of Finance, the Director of Accounts Payable and Purchasing, and the CFO will meet with all program managers and review the current purchasing policies and the...

2025-001: Noncompliance with Competitive Bidding Requirements. The planned corrective action: Immediate: By 4/30/2026, the Managing Director of Finance, the Director of Accounts Payable and Purchasing, and the CFO will meet with all program managers and review the current purchasing policies and the corresponding documentation required for submission for payment. A checklist for easy reference will be provided to all relevant requestors and approvers. Medium Term: Over the course of FY26, the CFO has been working with finance managers to review and update payment software, payment methods and financial policies. Updates will be rolled out for approval and implementation by 6/30/2026. There will also be formal communication and training provided to finance and program managers. The name(s) of the contact person(s) responsible for corrective action: Lisa Stein, CFO Julia Kagan, Managing Director, Finance Virginia Viloria, Director, Accounts Payable and Purchasing The anticipated completion date for the corrective action. 6/30/2026

View Audit 395838

Finding 1201129 (2025-001)

Material Weakness 2025

Nh Housing Development, Nfp

IL

2025-001 Auditor's Recommendation: We recommend that NH Housing Development ensures all required information for the data collection is available in a timely fashion to ensure timely filing of the data collection form. Management response: Management acknowledges that the reporting package and Data ...

2025-001 Auditor's Recommendation: We recommend that NH Housing Development ensures all required information for the data collection is available in a timely fashion to ensure timely filing of the data collection form. Management response: Management acknowledges that the reporting package and Data Collection Form were not submitted to the Federal Audit Clearinghouse within the timeframe required under 2 CFR 200.512(a). Management recognizes the significance of this repeat finding and acknowledges that prior corrective measures were not sufficiently formalized to ensure compliance. To prevent recurrence, Management will implement a documented submission timeline, assign clear primary and backup responsibility for certification and filing, and require documented confirmation of Federal Audit Clearinghouse acceptance. Management is committed to strengthening oversight controls to ensure timely submission in future reporting periods. If the funding agency has questions regarding this plan, please call me at 708 829-4358.

View Audit 395836

Finding 1201128 (2025-003)

Material Weakness 2025

Spencer Mountain Road Volunteer Fire Department

NC

The Organization will also look into hiring an independent accountant to assist with financial statement preparations to ensure accuracy. The Organization will also take steps to ensure the loan liability balance held at South State Bank is reported accurately.

View Audit 395834

Finding 1201127 (2025-002)

Material Weakness 2025

Spencer Mountain Road Volunteer Fire Department

NC

The Organization’s Board of Directors will ensure its review of the monthly bank statements, reconciliations and cancelled check images, payroll registers, financial statements and general ledger activity is documented through physical signatures, sign off with initials or email approval. The Organi...

The Organization’s Board of Directors will ensure its review of the monthly bank statements, reconciliations and cancelled check images, payroll registers, financial statements and general ledger activity is documented through physical signatures, sign off with initials or email approval. The Organization will also look into hiring an independent accountant to assist with financial statement preparation.

View Audit 395834

Finding 1201126 (2025-001)

Material Weakness 2025

Spencer Mountain Road Volunteer Fire Department

NC

The Organization will begin performing bank reconciliations for all accounts held by the Organization to ensure accuracy between bank statement balances and amounts recorded in QuickBooks. The Organization will also look into hiring an independent accountant to assist with financial statement prepar...

The Organization will begin performing bank reconciliations for all accounts held by the Organization to ensure accuracy between bank statement balances and amounts recorded in QuickBooks. The Organization will also look into hiring an independent accountant to assist with financial statement preparation.

View Audit 395834

Finding 1201125 (2025-003)

Material Weakness 2025

Cal State L.a. University Auxiliary Services, Inc.

CA

Response: Management agrees with the finding regarding the need to ensure that the Schedule of Expenditures of Federal Awards (SEFA) accurately presents total federal expenditures for the reporting period and that expenditures are recorded in the appropriate fiscal year. The condition occurred due t...

Response: Management agrees with the finding regarding the need to ensure that the Schedule of Expenditures of Federal Awards (SEFA) accurately presents total federal expenditures for the reporting period and that expenditures are recorded in the appropriate fiscal year. The condition occurred due to limited formal procedures related to the year-end review of federal grant expenditures and cutoff testing. Management recognizes the importance of ensuring that federal expenditures are properly identified, recorded, and reported in the correct fiscal period in accordance with the requirements of the Uniform Guidance (2 CFR Part 200). To address this matter, management will implement enhanced procedures for preparing and reviewing the SEFA. These procedures include performing a detailed reconciliation between the SEFA, grant reports, and the general ledger; reviewing expenditures near year-end to ensure proper fiscal year cutoff; and verifying that all federal programs and related expenditures are completely and accurately reported. In addition, management will document the SEFA preparation and review process and provide additional training to accounting staff involved in federal grant reporting. The Finance Department will be responsible for implementing these procedures, and management expects these corrective actions to be fully implemented beginning with the current fiscal year reporting process. Contact person responsible for corrective action: Lynne Duong, Compliance and Risk Manager Anticipated completion date: June 30, 2026

View Audit 395832

Finding 1201009 (2025-006)

Material Weakness 2025

Cal State L.a. University Auxiliary Services, Inc.

CA

Management will strengthen internal controls to ensure compliance with grant requirements related to level of effort and changes in key personnel. Management will review all active grant agreements to identify and document requirements related to level of effort and key personnel designations. A mon...

Management will strengthen internal controls to ensure compliance with grant requirements related to level of effort and changes in key personnel. Management will review all active grant agreements to identify and document requirements related to level of effort and key personnel designations. A monitoring process will be implemented to track personnel assignments and effort charged to federal grants to ensure compliance with grant requirements. Any proposed changes in key personnel or significant changes in level of effort will be reviewed by the Grants Management staff prior to implementation. When required by the grant terms, written approval will be obtained from the grant agency before any changes to key personnel or level of effort are made. Contact person responsible for corrective action: Lynne Duong, Compliance and Risk Manager Anticipated completion date: June 30, 2026

View Audit 395832

Finding 1201002 (2025-005)

Material Weakness 2025

Cal State L.a. University Auxiliary Services, Inc.

CA

Management agrees with the finding and acknowledges that a significant deficiency was identified related to report submission delay. To prevent this issue from recurring, we are implementing several corrective actions. These include establishing a stricter communication schedule with Post Award Admi...

Management agrees with the finding and acknowledges that a significant deficiency was identified related to report submission delay. To prevent this issue from recurring, we are implementing several corrective actions. These include establishing a stricter communication schedule with Post Award Administrators to ensure timely submission of reports and strengthening of our internal monitoring procedures by tracking submission deadlines more closely. Contact person responsible for corrective action: Lynne Duong, Compliance and Risk Manager Anticipated completion date: June 30, 2026

View Audit 395832

Finding 1200994 (2025-004)

Material Weakness 2025

Cal State L.a. University Auxiliary Services, Inc.

CA

Management agrees with the finding and will reevaluate internal processes and procedures. This error highlights the need for better oversight and timely communication between our organization and its subrecipients to ensure accurate reporting. The root cause of this issue was insufficient monitoring...

Management agrees with the finding and will reevaluate internal processes and procedures. This error highlights the need for better oversight and timely communication between our organization and its subrecipients to ensure accurate reporting. The root cause of this issue was insufficient monitoring and communication between the subrecipient and our grants management team. To address this, we are implementing several corrective actions. These include establishing a stricter communication schedule with subrecipients to ensure timely submission of invoices and expense reports and strengthening our internal monitoring procedures by tracking submission deadlines more closely. Additionally, we will improve guidance and capacity-building efforts for subrecipients to ensure they understand reporting requirements, and we will conduct quarterly reviews of subrecipient expenses to proactively identify and mitigate reporting delays. Contact person responsible for corrective action: Lynne Duong, Compliance and Risk Manager Anticipated completion date: June 30, 2026

View Audit 395832

Finding 1200878 (2025-013)

Material Weakness 2025

Lake Ridge Schools

IN

FINDING 2025-013 Finding Subject: Head Start Cluster – Activities Allowed or Unallowed, Allowable Costs/Cost Principles Contact Person Responsible for Corrective Action: Adrian Wilkerson, Chief Financial Officer Chris Akers, Treasurer Artiya Nash, Head Start Director Contact Phone Number and Email A...

FINDING 2025-013 Finding Subject: Head Start Cluster – Activities Allowed or Unallowed, Allowable Costs/Cost Principles Contact Person Responsible for Corrective Action: Adrian Wilkerson, Chief Financial Officer Chris Akers, Treasurer Artiya Nash, Head Start Director Contact Phone Number and Email Address: awilkerson@chsnewtech.com cakers@chsnewtech.com anash@chsnewtech.com 219-838-1819 Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The business office will generate a payroll distribution report by fund after each payroll period. This report will list each individual paid from this fund. This report will be provided to the grant director and will be signed and dated and returned to the business office to be filed with the payroll file. Anticipated Completion Date: This will be implemented immediately. 62

View Audit 395831

Finding 1200876 (2025-012)

Material Weakness 2025

Lake Ridge Schools

IN

FINDING 2025-012 Finding Subject: COVID-19 Education Stabilization Fund – Equipment and Real Property Management Contact Person Responsible for Corrective Action: Adrian Wilkerson, Chief Financial Officer Chris Akers, Treasurer Regin Johnson, Title I Grant Director Contact Phone Number and Email Add...

FINDING 2025-012 Finding Subject: COVID-19 Education Stabilization Fund – Equipment and Real Property Management Contact Person Responsible for Corrective Action: Adrian Wilkerson, Chief Financial Officer Chris Akers, Treasurer Regin Johnson, Title I Grant Director Contact Phone Number and Email Address: awilkerson@chsnewtech.com cakers@chsnewtech.com rjohnson@chsnewtech.com 219-838-1819 Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The corporation will create a binder with any expenditure qualifying as a capital asset expenditure. This binder will be provided to the capital asset consultant, currently AdTec. Anticipated Completion Date: This will be implemented immediately.

View Audit 395831

Corrective Action Plans

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