Corrective Action Plans

Reporting – Cash Management During the testing of the Department’s cash management procedures, it was determined that two out of sixty payments tested were not distributed within 21 days of the draw down of funds. For the items tested, the time elapsed between draw down and payment ranged to 28 to 57 days. Corrective Action Plan The Accountant draws cash from ASAP. After drawing federal funds, the Accountant sends the TDR to Budget and Finance (B&F) Treasury Management Section. B&F verifies the deposit and validates the TDR. Accountant will check Datamart daily to ensure funds are correctly posted in DataMart one day after B&F validates the TDR. The Accountant will also check DataMart daily to ensure adequate funds are available when invoice payment checks are processed. For payroll and indirect expenses, and DHO invoice expenditures and Pcard transactions the Accountant draws an estimated amount two days before the payroll cycle ends to be sure funds are available in Datamart. The Accountant checks the balance in DataMart daily. Implementation Date: April 1, 2024 Responding Official: Paul Uchima, WIC Administrative Officer

U.S. Department of Housing and Urban Development Loretto Apartments at O’Brien Road Housing Development Fund Company, Inc. (O’Brien Road Senior Apartments 2), HUD Project No. 014-EE287/NY06-S101-004 respectfully submits the following corrective action plan for the year ended December 31, 2023. Name and address of independent public accounting firm: Bonadio & Co., LLP 432 North Franklin Street #60 Syracuse, New York 13204 Audit period: January 1, 2023 – December 31, 2023 The findings from the 2023 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT None FINDINGS – FEDERAL AWARD PROGRAM AUDIT Finding 2023-001: Supportive Housing for the Elderly (Section 202), Federal Assistance Listing Number 14.157 Recommendation: Our auditors recommended that we ensure residual receipts are made within 60 days of year-end in accordance with the HUD Regulatory Agreement. Action Taken: O’Brien Road Senior Apartments 2 made the required payment in August 2023. Name of Contact Person Responsible for Corrective Action: Kyle Lyskawa, CFO, (315) 424-1821. Completion Date: August 2023

Finding Number: 2023-001 Planned Corrective Action: In 2022- 2023, Aramark hired a new Food Service Supervisor. The Supervisor failed to report the numbers correctly. She was told to pull the POS report and use the Aramark calendar, which differs from a monthly calendar. Once she had the numbers, they would be manually input into the Aramark program. She was using these numbers to report to the ODE. When doing this, she made several errors, which resulted in us reporting more meals than we actually served. Correction : 1) Report numbers to the ODE using the CN6 and CN7 reports. 2) Correct our reported number to ODE using the CN6 and CN7 reports for August - November 2023. Anticipated Completion Date: 1) We started in December 2023 using the correct report s, the CN6 and CN 7, to report our numbers to the ODE for reimbursement. 2) In February, we put in the correct numbers for August- November 2023 with the ODE, so our numbers will balance for the 2023-2024 school year. Responsible Contact Person : Michael Pissini, Treasurer Leslie McKimmie, Food Service Director

DSHA will establish robust internal controls to monitor and manage the funds held by our organization. We will include regular reconciliations and review to identify any interest accrued and ensure timely remittance to the Department of Health and Human Services. The HAF Program Manager and Financial & Reporting Section Manager will coordinate with the Director of Housing Finance and the Director of Financial Management to oversee this process and address any discrepancies in a timely manner. This corrective action plan will be implemented immediately to prevent any future delays. Responsible Official: Brian Rossello, Director of Housing Finance Completion Date: March 2024

Finding 2023-006 Cash Management – Timeliness of Subrecipient Payments Plan: The University of Illinois Chicago will send reminders to research administrators communicating the importance of timely payments to subrecipients. This University of Illinois Urbana-Champaign’s administering unit established an email alert to notify individuals when the central sponsored program office sends a subrecipient invoice. Also, an automated process creates a checklist for processing. Additionally, the Sponsored Programs Office will implement internal measures, including the development and implementation of a subaward invoice automation platform, to address inefficiencies related to the current multi-department review, approval, and payment process. Expected Implementation Date: UIC – March 2024 UIUC – June 2025Contact: Katrina Lopez, Assistant Director University of Illinois Chicago – Office of Sponsored Programs (OSP) klopez3@uic.edu 312-996-3782 Justine Story, Director Budget and Resource Planning, Sponsored Research Administration Carl R. Woese Institute for Genomic Biology University of Illinois Urbana-Champaign jrussian@illinois.edu 217-244-0131 Karen Thomas, Director Post-award Sponsored Programs Administration University of Illinois Urbana-Champaign Kthomas2@illinois.edu 217-265-4096

Person Responsible for Implementing the Corrective Action: Adrienne McGarity, Executive Director. Aniticipated Completion Date of Corrective Action: June 30, 2024. Repeated Findings: Yes. Planned Corrective Action: We concur with this finding. Policies will be adjusted, where deemed necessary. Extra care will be taken to ensure amounts are transferred correctly. We will take extra caution reviewing employees time as it relates to each program.

Department: Defense, Veterans and Emergency Management Administrative and Financial Services Title: Internal control over DG – PA program cash management needs improvement Questioned Costs: None Status: Corrective action is complete Corrective Action: The Department revised the current process based on a review of the TSA agreement and a comparison to the current practices. The Department developed a process diagram and review it with the Service Center. The Department trained MEMA Business Office Staff on the new process. The Department wrote a revised cash management procedure. The Department reviewed the process with MEMA Program Staff. The Department implemented the revised cash management process. Completion Date: November 21, 2023 (first and second items), November 30, 2023 (third and fourth items), December 4, 2023 (fifth item) and December 11, 2023 (sixth item) Agency Contact: James Belanger, Business Office Director MEMA, 207-707-2912

Department: Health and Human Services Title: Internal control over CCDF provider application and payment approvals needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department’s Program Managers will review findings with the program staff. The Department’s Program Managers will update Manual standard operating procedures. Completion Date: May 13, 2024 Agency Contact: John Feeney, Chief Operating Officer, OCFS, DHHS, 207- 626-8614

Department: Health and Human Services Administrative and Financial Services Title: Internal control over ELC program cash management needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The DHHS Financial Service Center will update procedures for the ELC program related to CMIA, Federal cash requests and reconciliations to reflect the current Treasury State Agreement and weekly draw processes. Completion Date: March 31, 2024 Agency Contact: Sarah Gove, Director, DHHS Service Center, DAFS, 207-458-6626

Department: Administrative and Financial Services Title: Internal control over ICA program cash management needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The DHHS Financial Service Center will review estimated revenue amounts for the CDC ICA appropriations and request the establishment and/or increases related to an analysis of ICA transactions. Completion Date: March 31, 2024 Agency Contact: Sarah Gove, Director, DHHS Service Center, DAFS, 207-458-6626

Department: Health and Human Services Title: Internal control over subrecipient cash management needs improvement Questioned Costs: None Status: Management’s opinion is that corrective action is not required Corrective Action: The Department disagrees with this finding. The Department believes that we are in compliance with the requirement for minimizing the time between payments to our subrecipients and the disbursement is as close as administratively feasible. The Department's procedures related to cash management include: reconciling payments to expenditures quarterly and monitoring subrecipient's audits. The Department's subrecipients not only are required to have Single Audits but also are required to have audited financial statements and audited Schedule of Expenditures of Department Awards at a lower threshold than that of the Single Audit through the Department's rule, Maine Uniform Accounting and Auditing Practices for Community Agencies (MAAP). This rule also defines a major program at a much lower threshold than the Uniform Guidance, so far more programs get tested annually than just Single Audits alone. Completion Date: N/A Agency Contact: Jim Lopatosky, Director, Division of Contract Management, DHHS, 207-287-5075

Department: Health and Human Services Administrative and Financial Services Title: Internal control over WIC cash balances needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department will contact the Federal Awarding Agency to identify steps needed to resolve cash discrepancy. Completion Date: December 31, 2024 Agency Contact: Sarah Gove, Director, DHHS Service Center, DAFS, 207-458-6626

Finding No. 2023 - 004 – Cash Management Finding: There were two drawdowns during the year for federal direct student loans which were not disbursed within three business days. The first instance resulted in the funds being held for 12 days before being disbursed or refunded and the second instance resulted in the funds being held for 38 days before being disbursed or refunded. Corrective Action Taken or Planned: During fiscal year 2023 both the Business Office and Office of Financial Aid experienced significant turnover. This finding been corrected by staff possessing experience with the regulations related to Title IV funding and cash management requirements. Reconciliations of disbursed financial aid to student accounts are performed. These reconciliations include the identification of subsequent changes to student status that would trigger a return of funds to the Department of Education. Completed July, 2023. Responsible Person: Richard Bowman, Controller

Carroll County, Maryland respectfully submits the following corrective action plan for the year ended June 30, 2023. Audit period: July 1, 2022 – June 30, 2023 Audit firm: CliftonLarsonAllen LLP The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Findings - Federal Award Program Audits: U.S. Department of Transportation U.S. Department of Treasury U.S. Department of Health and Human Services U.S. Department of Homeland Security Reference Number: 2023-001 Federal Program – Assistance Listing Numbers: Airport Improvement Fund – Assistance Listing No. 20.106 Highway Planning and Construction – Assistance Listing No. 20.205 Federal Transit Cluster – Assistance Listing No. 20.507 COVID 19: Coronavirus State & Local Fiscal Recovery Funds – Assistance Listing No. 21.027 Medicaid Cluster – Assistance Listing No. 93.778 Assistance to Firefighters – Assistance Listing No. 97.044 Recommendation: We recommend that the County improve its SEFA compilation process to ensure that program expenditures reported on the County’s SEFA are complete and accurate based on when the expenditure was incurred. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Accounting office with assistance from the Grants Management Office will take the lead in documenting and training appropriate staff so they become knowledgeable and experienced with the requirements for the County’s SEFA compilation process to ensure that program expenditures reported on the County’s SEFA are complete and accurate based on when the expenditure incurred per Uniform Guidance requirements. Accounting will work with the Grant Management Office as well as various Grant Administrators to review and update our formal documentation: Carroll County Guide to Grants to include detail for Grant Administrators to manage and maintain records for their federal reimbursable expenses to provide appropriate data to the Accounting department for the SEFA preparation. Once updated in FY24, we will train staff with fiscal responsibilities of managing and maintaining records of expenses incurred for these federally funded grants for the SEFA compilation. This topic will also be added to our current quarterly / monthly grant meetings with various departments. Accounting will review the internal controls for its SEFA compilation process for FY24 and future fiscal years. In future years our new ERP system, Tyler Technologies, will improve this process. Name(s) of the contact person(s) responsible for corrective action: Jennifer D. Hobbs, Comptroller Bobbi-Jo Fout, Bureau Chief, Accounting Deborah Standiford, Grants Manager Planned completion date for corrective action plan: FY24 for Audit period: July 1, 2023 – June 30, 2024 If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call Jennifer D. Hobbs or Bobbi-Jo Fout at 410-386-2085.

Corrective Action Plan: The Student Financial Aid Director and CFO of the University will meet with the third-party administrator during fiscal year 2024 to discuss how to prevent a similar situation from occurring in the future. The $7,420 of Federal Direct Loan program funds were returned on December 15, 2023. Anticipated Completion Date: The corrective action will be completed by June 30, 2024. Contact Person: Cliff Bristow, Director of Financial Aid 405-912-9037

Program: Nationally Significant Freight and Highway Projects Financial Assistance Listing Number: 20.934 Federal Agency: U.S. Department of Transportation Pass-through: California Department of Transportation Award Year: 2019 Grant Award Number: INFRALUL-5459(031) Compliance Requirements: Cash Management/ Matching, Earmarking, Level of Effort Views of Responsible Officials and Corrective Action: We concur with the finding. The City will implement procedures to include evidence documenting the individual who reviewed the reimbursement request prior to submission. Name of Responsible Person: Jennifer Hennessey, Director of Finance Projected Implementation Date: June 30, 2024

Criteria: The terms and conditions of the CARES Act Provider Relief fund (PRF) distributions state that funds are not to be used to reimburse expenses or losses that have been reimbursed from other sources or that other sources are obligated to reimburse. Condition: During the process of identifying expenses that were incurred to prevent, prepare for or respond to the coronavirus pandemic, it was noted that bonus expenses were not reduced by amounts reimbursable form other sources, namely Medicare. Corrective Action Plan: Management will continue to refine processes to more diligently review expenses to ensure that expenses are not being utilized for reimbursement from multiple sources. Anticipated Completion Date: Ongoing Responsible Individuals: Lisa Warren, CFO

District will work with legal counsel to establish parameters to execute verification for cause as outlined in USDA Food and Nutrition Services, Child Nutrition Programs Eligibility Manual for School Meals - Determining and Verifying Eligibility, Section 6 - Verification. District will work within established parameters to verify district employee salaries of approved applications submitted by district employees

Finding 2023-004 – Department of Education, Passed Though the South Dakota Department of Education Federal Financial Assistance Listing Number 84.010 – Title I Grants to Local Educational Award Number – Unknown, Award Year – 2023 Finding Summary: The School District lacks observable controls to ensure reporting to the State of South Dakota Department of Education for reimbursement requests are reviewed prior to submissions being completed. Responsible Individual: Kayla Hastings, Business Manager Corrective Action Plan: The School District will have reimbursement requests be reviewed and approved by either Title I director or the assistant business manager prior to submission. Anticipated Completion Date: The above corrective actions will be implemented beginning April 1, 2024.

We recommend that monthly procedures be put in place that allow for the timely collection of information needed to submit reimbursement requests by the due dates established in the grant agreements.

Finding Reference Number: SA 2023-001 Cash Management Assistance Listing Number: 14.218 Assistance Listing Title: Community Development Block Grant – Entitlement Grant COVID-19 - Community Development Block Grants/Entitlement Grants-CV Federal Agency: Department of Housing and Urban Development Federal Award Identification Number: B-22-MC-06-0042 COVID-19 - B-20-MW-06-0042 CDBG Daly City Pass Through # Not Available Name of Pass-through Entity: City of Daly City • Fiscal Year of Initial Finding: 2023 • Name(s) of the contact person: Karen Chang, Finance Director/Nell Selander ECD Director • Corrective Action Plan: The Finance and Economic & Community Development Departments (ECD) are working collaboratively to ensure timely drawdowns moving forward. Over the past year, substantial improvements have been made to standard contracts with grantees, as well as the City’s CDBG Policies & Procedures Manual. Finance and ECD are working together to implement changes to the City’s policies to facilitate more timely drawdowns. While staff turnover and training has delayed this, the City is on-track to meet timeliness deadlines as defined by HUD. • Anticipated Completion Date: July 1, 2024

Finding 2023-001 – Improper Recognition of Revenue Condition During our audit, we noted that contribution revenue and net assets with donor restrictions were misstated by a material amount. We also noted cost-reimbursement grants for which government contract revenue and deferred revenue were also misstated by a material amount. In both cases, the applicable revenue recognition standards were not adhered to. Corrective Action Plan The Network will continue to implement procedures to ensure that all unconditional contributions are recognized as revenue upon receipt of cash or notification of the contribution, and that conditional contributions are not recognized as revenue until the point in time when conditions have been met. We will also implement procedures to ensure that net assets are recorded and released in accordance with GAAP. We have implemented procedures to ensure that cost-reimbursement grants are reconciled at year-end, and that receivables, deferred revenue, and revenue are properly recorded for all grants by consolidating reporting and review of grant revenue and expenses under the Chief Operating Officer. Estimated Completion Date 6/30/2024 Individuals Responsible for Implementing Corrective Action Plan Executive Director and Chief Operating Officer

February 16, 2024 Southwestern Virginia Transit Management Company (SVTMC) respectfully submits the following corrective action plan for the year ended June 30, 2023. Name and address of independent public accounting firm: Brown, Edwards & Company, L.L.P. 3906 Electric Road Roanoke. VA 24018 Audit period: June 30, 2023 The findings from the June 30, 2023, Schedule of Findings and Questioned Costs (the "Schedule'') are discussed below. The findings are numbered consistently with the number assigned in the Schedule. FINDINGS- FINANCIAL STATEMENT AUDIT 2023-001: Segregation of Duties and Management Oversight (Material Weakness) Cot1dilio11: Due to st aff turnover, duties handled by the Director of finance included incompatible duties dur ing the year under audit such as: collection of cash, post receipts to general ledger. and prepare bank deposit s li ps. Criteria: A fundamental concept of internal controls is the separation of duties. No one employee should have access to both physical assets and the related accounting records. or to all phases of a transaction . In addition, all significant transactions and controls should involve reconciliations and supervisory, or management level. reviews of those processes. An effective and timely revie w process is intended to prevent and detect both fraud and errors. Turnover in key positions can result in individuals performing duties that are not appropriately segregated. In addition, turnover can also create challenges in the oversight or review functio n. E,ffecr: Inte rnal co ntro ls are designed to safeguard assets and detect losses from employee's dishonesty or error. Reco mmemlation: Steps shou ld be taken to eliminate conflicti ng duties and implement compensating cont ro l<:. where possible. Greater Roanoke Transit Company P.O. Box 13247 Roanoke, Virginia 24032 Phone: (540J 982-030S Fax: (540) 982-2703 www.valleymetro.com 2023-001: Segregation of Duties and Management Oversight (Material Weakness)-(Continued) Corrective Action: In June 2023, The Director of Finance removed the aforementioned duties from the position. The two Accounting Associates and the Money Room Shift Leader process bus station and accounts receivable rece ipts. Cash fares are counted twice weekly by a minimum of three staff members, not including the Director of Finance. With minimal exceptions , all monies received are kept in a locked safe and transported to the bank by an annored cash handling company. The Director of Finance and the Accounting Supervisor do not process deposits or collect cash, nor do they post the entries to the general ledger. Goal for correction is by close of FY24. 2023-002: Grant Management and Operating Assistance (Material Weakness) Condition: During 2023, various functions related to financial management were not perfonned timely resulting in difficulties and delays in completion of the annual audit. Criteria: Internal controls related to financial management should be designed to ensure timely reconciliations are performed, including submission of reimbursement requests and reconciling grant and local revenue. Timely and effective reconciliations ensure the financials provided for the annual audit are provided based on the agreed upon schedule with the auditors which allows timely inclusion in the City's financial report as well as to meet federal reporting deadlines. In addition, these reconciliations will ensure that financials do not require adjustments. Cause: Turnover in financial positions and increased levels of federal and state grants caused significant delays in perfonnance of and reduction in effectiveness of certain financial duties. Effect: Current and prior period audit adjustments were required to prepare the financials in accordance with Generally Accepted Accounting Principles. In addition, there were significant delays in completion of the annual audit. Recommendation: We recommend that the Company establish financial management procedures to ensure that timely reconciliations and submissions of reimbursement requests. We would recommend these procedures be perfonned monthly and include tracking and reconciling grant activity by type (federal, state, and loc al). 2023-002: Grant Management and Operating Assistance (Material Weakness) - (Continued) Corrective Action: The Director of Finance and Accounting Supervisor is currently in the process of reviewing operating procedures and have created a monthly close checklist to create consistency in the timing and manner of recording financial activities. Beginning in FY2024, staff will be assigned specific monthly closing duties and monthly activity should be fully recorded by the 20th of the subsequent month. Members of the Accounting Team have been receiving financial system training on various topics from the system vendor and management is researching additional outside training opportunities. For this to happen, we must hire additional staff to get caught up and remain so. 2023-003: Bank Reconciliations (Material Weakness) Condition: Monthly bank reconciliations were not prepared by an accountant and reviewed and approved by a supervisor in a timely manner. Criteria: Monthly bank reconciliations should be performed by the 15 th of next month. Cause: Staff shortage and lack of cash flow management. Effect: Poor cash flow management resulting in vendor and contractor invoices not being paid in a timely manner. Recommendation: We recommend bank reconciliations be prepared by an accountant and reviewed by a supervisor to ensure unreconciled or unusual items, or other matters noted in the reconciliation, are detected and addressed in a timely manner. Corrective Action:. The Company agrees and is working towards completing the newly established monthly close checklist each month by the end of FY2024. Specific Team members have been assigned responsibility for reconciling individual bank activity. Staff will receive the required system training and delinquent reconciliations will be completed by June 30, 2024. A new monthly closing checklist has been developed and includes prepardtion and review oof these reconciliations. Beginning in FY2024, all monthly closing items should be completed by the 20th of the subsequent month. This is our plan moving forward, but being caught up must come first. 2023-004: Virginia Public Procurement Act Prompt Payment Requirement Condition: The Company did not pay a certain contractor for the construction of the bus transfer station on a timely basis. Criteria: Section 2.2-4352 of the Code of Virginia requires that every agency of local government that acquires goods or services shall promptly pay for the completed delivered goods or services by the required payment date. The required payment date shall be either (i) the date on which payment is due under the terms of the contract for the provision of the goods or services or (ii) if a date is not established by contract, not more than forty-five days after goods or services are received or the invoice is rendered. Cause: Due to a lack of cash flow and grant management, insufficient funds were available to pay a certain contractor in a timely ma nne r. Effect: The contractor was not paid timely as required by the Code of Virginia. Recommendation: All vendors are to be paid in a timely manner as defined by the Code of Virginia. Corrective Action:. Due to technical issues, staff were unable to submit grant draw requests to the Federal Transit Authority through their Electronic Clearing House Operation [ECHO] system, significantly affecting the company's cash flow. This system access issue was resolved during FY2023, and grant drawdowns started back in March of 2023. Additionally, detailed spreadsheets tracking grant activity have been developed, which will allow staff members to better monitor reimbursement requests and ensure vendors are paid timely moving forward. 2023-00S: Parts Inventory (Material Weakness) Condition: There were several instances where the quantity and value of items did not agree between the supplied inventory listing and the physical inventory counted during the inventory observation. Criteria: The inventory management system and the general ledger should be reconciled on a periodic basis and annual inventory counts should be performed. Cause: Significant staff turnover during the year and a general staff shortage. 2023-005: Parts Inventory (Material Weakness)- (Continued) Effect: Untimely reconciliations could result in discrepancies between the inventory management system and the general ledger. In addition, inventory that has been used could be erroneously counted in the inventory management system with the absence of an annual inventory count. Recommendation: We recommend that management perfonn annual inventory counts, reconcile inventory amounts on a periodic basis between the inventory management system and the general ledger, and that obsolete or otherwise outdated inventory items be disposed of. Corrective Action: Management is in agreement and plans to perfonn monthly counts of parts to ensure all parts are counted within the fiscal year. Spot counts will be perfonned each month and reconciled to the inventory management system. Once input into the inventory management system, updated inventory values will be provided to Finance so they can reconcile the general ledger to the inventory system. In addition, management plans on disposing obsolete inventory items through public auction. 2023-006: Paid Time Off (Material Weakness) Condition: The Company did not reconcile third-party reports used to calculate year-end Paid Time Off (PTO) accruals and expenses are not reconciled to internal Human Resources records used to track each employee's earned PTO. In addition, these third-party reports were not retained by the Company's staff for reference and the Company's PTO accrual and expense were only recorded once at year-end. Criteria: Third-party reports should be reconciled to internal records, third-party reports used to calculate PTO accruals and expenses should be retained for reference, and PTO expense and accruals should be periodically recorded and recognized. Cause: Significant staff turnover during the year and a general staff shortage. Effect: Not reconciling third-party PTO reports to internal Human Resources records could lead to PTO inconsistencies between internal and external records - leading to employees having two different amounts of available PTO during the year, depending on which system they are using. This could also lead to a discrepancy between the amount of PTO accrued at year-end and the actual amount of PTO the Company is actually obligated to pay out. 2023-006: Paid Time Off (Material Weakness) - (Continued) Recommendation: We recommend that management perform periodic reconciliations between the third-party PTO reports and the internal Human Resources records to ensure that the third-party reports are accurate and complete. If there are discrepancies, the Company can resolve them quickly. We also recommend that the client retain each third-party report for reference and for inspection. Corrective Action: Management is in agreement. Management is aware of the importance of inter-departmental communication between Human Resources and Finance and is currently working to establish a standard operating procedure regarding PTO accruals. The Company will seek to retain third­ party reports for easy inspection and periodically reconcile these reports to internal Human Resources records moving forward. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAM AUDIT 2023-007: Federal Transit Cluster - Assistance Listing #20.507, Cash Management - Material Noncompliance/Material Weakness in Controls over Compliance Condition: A lack of cash flow and grant management oversight resulted in contractors and vendors not being paid timely for the construction of the bus transfer station and construction of bus shelters. Criteria: All grant activities should include management level oversight to ensure timeliness, accuracy, and compliance with specified grant requirements. Cause: A Jack of proactive cash flow and grant management occurred when invoices were received. Effect: Contractors were not paid for over 30 days after receipt of invoice. Repeated delays in payments could result in work stoppage and project delays. Recommendation: A designated management level individual should have oversight to require timely drawdowns of capital grants and timely payment of invoices. Repeat Finding: Yes Recommendation: A designated management level individual should have oversight to require timely drawdowns of capital grants and timely payment of invoices. Corrective Action: Due to technical issues, staff were unable to submit grant draw requests to the Federal Transit Authority through their Electronic Clearing House Operation [ECHO] system, significantly affecting the company's cash flow. This system access issue was resolved during FY2023, and grant drawdowns started back in March of 2023. Additionally, detailed spreadsheets tracking grant activity have been developed, which will allow staff members to better monitor reimbursement requests and ensure vendors are paid timely moving forward. If the Federal Audit Clearmghouse has questions regarding th is plan, please call Kevin Pric_c . General Managg_ru 540-982-0305.

There are 10 audit findings total in calendar year 2022 and are all connected to a former staff person in the accounting function and also in the Trio Upward Bound program. In January 2023, we hired a new Manager of Account Services who immediately implemented new procedures and prepared the appropriate level of detail backup information for the TRIO reimbursements. Each reimbursement was also reviewed and signed by the Controller, who verified the information and transactions before any funds were transferred. This process currently complies with cash management requirements. A new Trio Upbound Bound Director was also hired in fall 2023. Contact person(s) responsible for corrective action: Cassandra Turner, Manager of Account Services, and Sheila M. Brooks, Controller/Director of Business Services (new January 2024) Anticipated Completion Date: Immediate

Contact Person: Interim Executive Director Fred Bazemore Corrective Action: The Organization agrees with the finding and is working to establish a clear understanding of the grant reimbursement process to ensure the proper amounts are charged to each grant. Anticipated Completion Date: This corrective action will be implemented by June 30, 2024.