Corrective Action Plans

Finding 1161731 (2025-001)

Material Weakness 2025

Citadel Gardens, Inc. Dba the Woodlands at Citadel

MO

Special Tests & Provisions Subrecipient Monitoring HUD Housing Programs

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED MARCH 31, 2025 Title 2, U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Subpart F, Section 511 – Audit Findings Follow-up requires the auditee to p...

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED MARCH 31, 2025 Title 2, U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Subpart F, Section 511 – Audit Findings Follow-up requires the auditee to prepare a corrective action plan to address each audit finding included in the current year auditor’s reports. The Corrective Action Plan for Current Year Findings present our corrective action plan for the Financial Statement and/or Federal Award Findings described in the accompanying Schedule of Findings and Questioned Costs for the period ended March 31, 2025. Responsible Party Name: Fred Gibbs Position: President, Management Agent Telephone Number: (913) 709-1811 Federal Agency U.S. Department of Housing and Urban Development Federal Program Supportive Housing for the Elderly (Section 202) Finding 2025-001 Compliance Requirements N – Special Tests and Provisions Finding Type Financial Statement and Federal Awards Auditee’s Comments on Finding We agree with the auditors’ finding. Corrective Action We will follow our policies and procedures to ensure that our accounting records are kept accurate and complete, and a responsible official will review and sign off on the monthly financial statements. Anticipated Completion Date December 31, 2025

View Audit 371688

Finding 1161725 (2025-001)

Material Weakness 2025

The Northern Forest Center, Inc.

NH

Cash Management § 200.305

Condition: While testing of internal controls over cash management it was noted that the Center did not follow procedures in place for the draw down of federal funds. Action Taken: Update grant intake process to identify draw down procedures outlined in grant agreement or agency terms and conditions...

Condition: While testing of internal controls over cash management it was noted that the Center did not follow procedures in place for the draw down of federal funds. Action Taken: Update grant intake process to identify draw down procedures outlined in grant agreement or agency terms and conditions. Document and follow identified procedures for all grant draw downs.

View Audit 371674

Finding 1161724 (2025-003)

Material Weakness 2025

Low Rent Housing Agency of Knoxville, Iowa

IA

Cash Management Material Weakness Internal Control / Segregation of Duties

Planned corrective action: The Executive Director will draw down funds first prior to paying an invoice to a contractor for Capital Funds projects. This step has been added to the contracting checklist. In addition, the ED will only draw down one project at a time to eliminate confusion. There were ...

Planned corrective action: The Executive Director will draw down funds first prior to paying an invoice to a contractor for Capital Funds projects. This step has been added to the contracting checklist. In addition, the ED will only draw down one project at a time to eliminate confusion. There were 4 payments issued to a contractor at the time of the audit, but as of October 1, 2025, all draw downs will be done in accordance with the guidance provided in this finding.

View Audit 371664

Finding 1161682 (2025-001)

Material Weakness 2025

Ladder Up

IL

Cash Management Reporting Internal Control / Segregation of Duties

Condition: During audit fieldwork, our testing resulted in a restatement of net position in order to correct accounts payable that were improperly recorded in prior years. Plan: The Airport and Director of Finance will implement effective internal controls in order to properly record accounts payabl...

Condition: During audit fieldwork, our testing resulted in a restatement of net position in order to correct accounts payable that were improperly recorded in prior years. Plan: The Airport and Director of Finance will implement effective internal controls in order to properly record accounts payable on a timely basis prior to audit fieldwork. Anticipated Date of Completion: Fiscal Year 2026 Name of Contact Person: Jason Griffith, Director of Finance Management Response: The Airport and Director of Finance will work with finance staff to ensure that accounts payables are recorded in the correct fiscal years. The Airport has switched accounting software. The new software also for the Director of Finance to review accounts payables and correct when accounts payables are recorded.

View Audit 371616

Finding 1161679 (2025-003)

Material Weakness 2025

Village of Farwell

MI

Subrecipient Monitoring Allowable Costs / Cost Principles Procurement, Suspension & Debarment § 200.303 § 200.318 § 200.327 § 200.331

2025-003 – Lack of Written Findings and Questioned Costs. Auditor Description of Condition and Effect. Although the Village has processes in place to cover these areas, and drafts of formal written policies covering the above items that address all of the area required by the Uniform Guidance have b...

2025-003 – Lack of Written Findings and Questioned Costs. Auditor Description of Condition and Effect. Although the Village has processes in place to cover these areas, and drafts of formal written policies covering the above items that address all of the area required by the Uniform Guidance have been developed, these policies have not yet been formally approved and adopted by the Village. As a result of this condition, the Village did not fully comply with the Uniform Guidance applicable to the above noted grants. Auditor Recommendation. We recommend that the Village review and approve the draft policies as soon as practical, but no later than the end of fiscal year 2026. Corrective Action. The Village has prepared a policies and procedures manual for the federal grant programs, which will be approved by the Village Council before the end of fiscal year 2026. Responsible Person. Ross Wilson, Village Clerk/Treasurer. Anticipated Completion Date: February 2026.

View Audit 371608

Finding 1161678 (2025-004)

Material Weakness 2025

Village of Farwell

MI

Procurement, Suspension & Debarment Subrecipient Monitoring Allowable Costs / Cost Principles § 200.214

2025-004 – Lack of Documentation for SAM.gov Exclusion Checks. Auditor Description of Condition and Effect. Although the Village has processes in place to cover these areas, and completes SAM.gov exclusion checks, the Village did not retain documentation to support that the exclusion checks were per...

2025-004 – Lack of Documentation for SAM.gov Exclusion Checks. Auditor Description of Condition and Effect. Although the Village has processes in place to cover these areas, and completes SAM.gov exclusion checks, the Village did not retain documentation to support that the exclusion checks were performed for vendors. As a result, there is no evidence that the Village verified whether these parties were suspended or debarred prior to entering covered transactions. Auditor Recommendation. We recommend that the Village retain evidence that SAM.gov exclusion checks are being completed for vendors to document that vendors are not suspended or debarred prior to entering covered transactions. Corrective Action. The Village will begin retaining documentation for its SAM.gov exclusion checks that it completes for vendors to verify whether these parties were suspended or debarred prior to entering covered transactions. Responsible Person. Ross Wilson, Village Clerk/Treasurer. Anticipated Completion Date: February 2026.

View Audit 371608

Finding 1161644 (2025-001)

Material Weakness 2025

Asi Rochester, Inc.

MN

HUD Housing Programs

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 The Project's security deposit liability account was underfunded at June 30, 2025. Recommendation: The Project should carefully review the statement of financial position to make sure the secu...

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 The Project's security deposit liability account was underfunded at June 30, 2025. Recommendation: The Project should carefully review the statement of financial position to make sure the security deposit liability account is funded. Action Taken: The Project agrees with the finding. Management will be reminded to review the tenant security deposit cash balance versus the security deposit liability balance on a monthly basis. The finding was corrected in August 2025. If the Department of Housing and Urban Development has questions regarding this plan, please call Ling Han at 651-645-7271.

View Audit 371532

Finding 1161643 (2025-001)

Material Weakness 2025

Mesa Supportive Housing, Inc.

MN

Questioned Costs HUD Housing Programs

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: The Project overpaid management fees to the management company. Recommendation: The management company should repay the $30 to the Project. Action Taken: The Project agrees with the...

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: The Project overpaid management fees to the management company. Recommendation: The management company should repay the $30 to the Project. Action Taken: The Project agrees with the finding. The management company will repay the overpaid management fees as soon as possible. If the Department of Housing and Urban Development has questions regarding this plan, please call Ling Han at 651-645-7271.

View Audit 371531 Questioned Costs: $1

Finding 1161642 (2025-001)

Material Weakness 2025

Asi - Dakota County, Inc.

MN

Questioned Costs HUD Housing Programs

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: The Project overpaid management fees to the management company. Recommendation: The management company should repay the $389 to the Project. Action Taken: The Project agrees with th...

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: The Project overpaid management fees to the management company. Recommendation: The management company should repay the $389 to the Project. Action Taken: The Project agrees with the finding. The management company will repay the overpaid management fees as soon as possible. If the Department of Housing and Urban Development has questions regarding this plan, please call Ling Han at 651-645-7271.

View Audit 371530 Questioned Costs: $1

Finding 1161641 (2025-001)

Material Weakness 2025

Universal City Supportive Housing, Inc.

MN

HUD Housing Programs

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 For one of the tenant files tested, the Project was late with the tenant recertification. Recommendation: Project personnel should be reminded that timely recertification is an important step ...

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 For one of the tenant files tested, the Project was late with the tenant recertification. Recommendation: Project personnel should be reminded that timely recertification is an important step in tenant management. Action Taken: The Project agrees with the finding. Recertification staff have been reminded to be aware of deadlines and perform recertification procedures in a timely manner. If the Department of Housing and Urban Development has questions regarding this plan, please call Ling Han at 651-645-7271.

View Audit 371529

Finding 1161640 (2025-001)

Material Weakness 2025

Twin Ports Accessibility Project, Inc.

MN

HUD Housing Programs

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: SECTION 223(f), ASSISTANCE LISTING NUMBER 14.155 Condition: For one of the tenant files tested, the Project was late with the tenant recertification. Recommendation: Project personnel should be reminded that timely recertification is an i...

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: SECTION 223(f), ASSISTANCE LISTING NUMBER 14.155 Condition: For one of the tenant files tested, the Project was late with the tenant recertification. Recommendation: Project personnel should be reminded that timely recertification is an important step in tenant management. Action Taken: The Project agrees with the finding. Recertification staff have been reminded to be aware of deadlines and perform recertification procedures in a timely manner. If the Department of Housing and Urban Development has questions regarding this plan, please call Ling Han at 651-757-3038.

View Audit 371528

Finding 1161639 (2025-001)

Material Weakness 2025

Great Falls Supportive Housing, Inc.

MN

Questioned Costs HUD Housing Programs

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: One of the tenant files tested contained a mathematical error in computing household income in the process of computing the tenant's share of monthly rent. Recommendation: The Proje...

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: One of the tenant files tested contained a mathematical error in computing household income in the process of computing the tenant's share of monthly rent. Recommendation: The Project should recompute the HUD subsidy and tenant rent for this tenant and adjust a future monthly billing. Action taken: The Project agrees with the finding. Tenant rent was recomputed in September 2025 and management adjusted the October 2025 HUD billing. If the Department of Housing and Urban Development has questions regarding this plan, please call Ling Han at 651-757-3038.

View Audit 371526 Questioned Costs: $1

Finding 1161638 (2025-002)

Material Weakness 2025

Great Falls Elderly Housing, INC

MN

Questioned Costs

FINDING 2025-002: SECTION 202, ASSISTANCE LISTING NUMBER 14.157 Condition: The Project paid the expense of another project under common management. Recommendation: The Project should carefully review invoices before payment to make sure it pays the correct amount. Action taken: The Project agrees wi...

FINDING 2025-002: SECTION 202, ASSISTANCE LISTING NUMBER 14.157 Condition: The Project paid the expense of another project under common management. Recommendation: The Project should carefully review invoices before payment to make sure it pays the correct amount. Action taken: The Project agrees with the finding. The accounts payable staff will be reminded to be careful when entering invoices for payment. The finding was corrected in July 2025. If the Department of Housing and Urban Development has questions regarding these plans, please call Ling Han at 651-645-7271.

View Audit 371525 Questioned Costs: $1

Finding 1161637 (2025-001)

Material Weakness 2025

Great Falls Elderly Housing, INC

MN

HUD Housing Programs

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT - FINDING 2025-001: SECTION 202, ASSISTANCE LISTING NUMBER 14.157 Condition: One of the tenant files tested did not contain a copy of the tenant's signed application. Recommendation: Project management should be reminded that obtaining proper documentation...

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT - FINDING 2025-001: SECTION 202, ASSISTANCE LISTING NUMBER 14.157 Condition: One of the tenant files tested did not contain a copy of the tenant's signed application. Recommendation: Project management should be reminded that obtaining proper documentation during the move-in process is important in tenant management. Action taken: The Project agrees with the finding. Project management will be reminded to obtain the proper documentation during the move-in process.

View Audit 371525

Finding 1161629 (2025-001)

Material Weakness 2025

Minnesota Valley Action Council, Inc.

MN

Questioned Costs Allowable Costs / Cost Principles

Weatherization Assistance for Low-Income Persons – Assistance Listing No. 81.042 Recommendation: Organization should review the program guidelines for allowable costs related to appreciation gifts. If necessary, explicit approval over these costs should be obtained from the grantor. Explanation of d...

Weatherization Assistance for Low-Income Persons – Assistance Listing No. 81.042 Recommendation: Organization should review the program guidelines for allowable costs related to appreciation gifts. If necessary, explicit approval over these costs should be obtained from the grantor. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will review program guidelines for allowable costs and obtain approval from grantor if necessary. Name of the contract person responsible for corrective action: Adam Chelstrom, Support Services Director Planned completion date for corrective action plan: November 2025

View Audit 371498 Questioned Costs: $1

Finding 1161620 (2025-002)

Material Weakness 2025

Rural Health Services, Inc.

SC

Special Tests & Provisions Internal Control / Segregation of Duties

In Finding 2025-002, it was reported that the Organization did not properly apply sliding fee discounts for certain patients with visits to the Organization during the year ended May 31, 2025. Management recognizes the importance of complying with sliding fee guidelines. In response to Finding 2025-...

In Finding 2025-002, it was reported that the Organization did not properly apply sliding fee discounts for certain patients with visits to the Organization during the year ended May 31, 2025. Management recognizes the importance of complying with sliding fee guidelines. In response to Finding 2025-002, proper training will be given to employees and sliding fee discounts will be reviewed by a supervisor on a periodic basis to ensure compliance with the sliding fee scale.

View Audit 371474

Finding 1161616 (2025-001)

Material Weakness 2025

Rural Health Services, Inc.

SC

In Finding 2025-001, a condition was noted that a majority of the board members or their immediate family are not users of the health center services. Compliance conditions state that more than fifty percent of board members should “utilize the health center as their principal source of primary heal...

In Finding 2025-001, a condition was noted that a majority of the board members or their immediate family are not users of the health center services. Compliance conditions state that more than fifty percent of board members should “utilize the health center as their principal source of primary health care” in order for them to give substantive input into the Organization’s strategic direction and policy. Management recognizes the importance of complying with board member compliance guidelines. In response to Finding 2025-001, procedures have been established to ensure that more than 50 percent of the board members are users of the health center, and compliance is now achieved as of the date of this corrective action plan.

View Audit 371474

Finding 1161571 (2025-002)

Material Weakness 2025

Building Futures, Inc.

NE

HUD Housing Programs

Building Futures, Inc. will make deposits to the Residual Receipts account within 60 days of year-end if there is a cash surplus. The cash surplus for the year ended June 30, 2025 was made on September 11, 2025.

View Audit 371447

Finding 1161570 (2025-001)

Material Weakness 2025

Building Futures, Inc.

NE

HUD Housing Programs

Building Futures, Inc. will ensure monthly replacement reserve deposits are made or obtain approval from HUD to suspend deposits.

View Audit 371447

Finding 1161530 (2025-001)

Material Weakness 2025

Sj Senior Housing, Inc.

NJ

Questioned Costs Special Tests & Provisions HUD Housing Programs

Views of Responsible Official: We will make the deposit and ensure going forward all monthly payments are made.

View Audit 371429 Questioned Costs: $1

Finding 1161496 (2025-001)

Material Weakness 2025

Missouri Family Health Council, Inc.

MO

Recommendation: We recommend the Organization immediately open a general ledger account for the unrecorded bank account and implement and enforce a formal policy requiring all bank account to be approved by the Board of Directors and recorded in the general ledger immediately upon opening.

View Audit 371397

Finding 1161496 (2025-001)

Material Weakness 2025

Missouri Family Health Council, Inc.

MO

View of responsible officials and planned corrective actions: The Board concurs with the recommendation that the Organization establish a formal policy requiring all bank accounts be recorded in the general ledger immediately upon opening. The bank account was set up on the general ledger as soon as...

View of responsible officials and planned corrective actions: The Board concurs with the recommendation that the Organization establish a formal policy requiring all bank accounts be recorded in the general ledger immediately upon opening. The bank account was set up on the general ledger as soon as the finding was discussed with management and the outside accounting firm.

View Audit 371397

Finding 1161476 (2025-003)

Material Weakness 2025

Warner Pacific University

OR

Student Financial Aid

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the University review their current policies and procedures around credit balances and ensure the processes in place are sufficient to ensure student credit balances due to federal funds are refunded w...

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the University review their current policies and procedures around credit balances and ensure the processes in place are sufficient to ensure student credit balances due to federal funds are refunded within 14 days. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Controller and the Assistant Director of Student Accounts will review credit balances due to federal funds on a weekly basis to determine the balances that need to be refunded. All credit balances that are identified as valid and owed to the student will now be refunded as part of the weekly refund process. Name of the contact person responsible for corrective action: Douglas Wade, Executive Vice President and CFO Warner Pacific University 2219 SE 68th Ave Portland OR 97215 dswade@warnerpacific.edu Office Phone 503-517-1043 Cell Phone 661-706-8379 Planned completion date for corrective action plan: April 30, 2025

View Audit 371379

Finding 1161470 (2025-002)

Material Weakness 2025

Warner Pacific University

OR

Student Financial Aid

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the University review its reporting procedures to ensure the students’ statuses are accurately and timely reported to NSLDS as required by regulations. Explanation of disagreement with audit finding: T...

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the University review its reporting procedures to ensure the students’ statuses are accurately and timely reported to NSLDS as required by regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: WPU will form an internal committee to meet, review the existing procedures and reporting schedule, and update the procedures and reporting schedule as needed to ensure the students’ statuses are accurately and timely reported to NSLDS as required by regulations. The committee will consist of the Registrar, the Senior Associate Registrar, the Director of Student Finance, and representative(s) from the Controller’s Office. The committee will meet as many times as needed in Fall 2025 to fully review the procedures and reporting schedule, including reviewing any audit findings and making sure that the procedures have been properly updated to prevent the identified issue(s) from recurring in the future. Moving forward, the committee will meet at least once per year to review and update the procedures and reporting schedule, and can meet more frequently if needed to respond to individual situations.

View Audit 371379

Finding 1161464 (2025-001)

Material Weakness 2025

Warner Pacific University

OR

Student Financial Aid Allowable Costs / Cost Principles Significant Deficiency

Student Financial Assistance Cluster – Assistance Listing No. 84.033 – Federal Work Study Program Recommendation: We recommend that the University establish procedures to ensure that at least 7% of Federal Work Study allocation is used for community service jobs, or successfully receive a waiver as ...

Student Financial Assistance Cluster – Assistance Listing No. 84.033 – Federal Work Study Program Recommendation: We recommend that the University establish procedures to ensure that at least 7% of Federal Work Study allocation is used for community service jobs, or successfully receive a waiver as had happened in previous years. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Director of Financial Aid will monitor the progress of establishing partnerships and FWS community service opportunities, as well as review usage of FWS funds in the community service sector. The Director of Financial Aid will provide status updates to, and seek guidance from, the Vice President of Enrollment and Student Success and Engagement at least two times per term to ensure that WPU is on target to reach the federal requirements around the FWS community service rules. At the end of each award year, the University will evaluate student satisfaction in the community service positions and adjust placements accordingly for the upcoming award year.

View Audit 371379

Corrective Action Plans

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