Finding 1221225 (2025-001)

Saginaw-Shiawassee Habitat for Humanity respectfully submits the following corrective action plan for the year ended September 30, 2025. Auditor: Maner Costerisan 2425 E. Grand River Ave., Suite 1 Lansing, MI 48912 Audit Period: The finding from the September 30, 2025 schedule of findings and questioned costs is discussed below. The finding is numbered consistently witht eh number assigned in the schedule. Finding - Federal audit Finding 2025-001 - Material Weakness Reccommendation: Saginaw-Shiawassee Habitat for Humanity prepare required written policies and procedures that are promulgated by 2 CFR 200. Action to be taken: Saginaw-Shiawassee Habitat for Humanity concurs with the finding and acknowledges that formal written federal policies and procedures required under Uniform Guidance were not fully documented during the audit period. The Organization has begun developing and implementing written policies and procedures related to - Allowability of costs chargedd to federal awards - Procurement and bidding procedures - Compensaztion and payroll allocation procedures - Federal grant compliance and documentation standards Management is working in consultation with its auditor and grant partners, as appropriate, to ensure policies align with Uniform Guidance requirements for 2 CFR 200. In addition to policy development, the Organization will: - Review and fformally adopt policies through leadershiop and governance process - Train applicable staff on federal compoliance requirements and governance processes - Maintain centralized documentation related to fedderal grant compliance and procurement activities - Incorporate periodic internal reviews to ensure continued compliance with fedderal requirements