Corrective Action Plans

Condition The District could not provide support for requested monthly claims. Plan The District will ensure that supporting counts for each month are retained. Anticipated Date of Completion 6/30/23. Name of Contact Person Lela Bridges, Interim Superintendent. Management Response The District experienced turnover for key employees within the grant reporting process and is currently strengthening internal control procedures over grant reporting and monitoring.

Views of Responsible Officials and Planned Corrective Actions: Anita Moreau has implemented policies to ensure all meal and attendance reports are accrate. Anita Moreau is also encouraging centers to utilize the computer claiming software. These policies have been provided to all centers. On February 3, 2023, TDA reviewed the Corrective Action Plan provided by Anita Moreau and has concluded its review.

In June of 2022 new utility allowance schedules were adopted by the board, however the new schedule was not entered into the Housing Management Software. With annuals starting in November the new utility allowance schedule has been adhered to.

Finding 2022-005 Condition One of the thirty-seven payroll transactions tested was more than actual costs incurred due to incorrect payroll information being used to calculate the payroll expense. Our sample was not statistically valid. Corrective Action Plan Corrective Action Planned: The reimbursement reports prepared by the Clerk of Courts will be reviewed by a person other than the preparer to ensure accuracy. The review will be completed before the reimbursement request is submitted to Child Support. Name(s) of Contact Person(s) Responsible for Corrective Action: Shelly Maas, Deputy Clerk of Courts Anticipated Completion Date: August 2023

Finding 2022-002 Condition We selected three monthly submissions of CARS and SPARC reports across multiple programs received by the Wisconsin Department of Human Services and the Wisconsin Department of Children and Families. All three of the CARS and SPARC reports tested were not reviewed by an independent person before submission for reimbursement. Our sample was not statistically valid. Corrective Action Plan Corrective Action Planned: A review process will be established and implemented to ensure that required reports are reviewed by someone other than the preparer of the reports prior to submission. Name(s) of Contact Person(s) Responsible for Corrective Action: Reports prepared by Kozue Bush, Finance Manager, will be reviewed by Chad Lillethun, FMS Division Administrator prior to submission. Anticipated Completion Date: Review process will be implemented with September 2023 reports.

September 21, 2023 Baker Tilly US, LLP 1500 RXR Plaza ? West Tower Uniondale, New York 11556 Dear Auditors: In connection with your audit of the federal awards received by NPower Inc. for the year ended December 31, 2022, in accordance with Government Auditing Standards and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), the following outlines NPower Inc.?s plans to address the Federal Awards Finding from the audit report: Finding Criteria: Management is responsible for controls over review of drawdown requests and reporting. Condition/Context: The individual preparing the drawdown request and reporting is the same individual that submits the documents. Cause: The size of the Organization does not allow for proper segregation of duties for drawdown requests and reporting. Effect: Errors in the drawdown requests and reporting may occur and not be detected within a timely period. Resolution ? Effective immediately, for all federal awards, to address the fact that the individual preparing the drawdown requests and reporting is the same individual that submits the documents, we will implement the following: a. I will prepare the drawdown requests and report for submission and submit the documents to Stefanie Boles, our Chief Administrative Officer, for her review and approval to submit to the funding source for reimbursement. b. Upon receipt of approval from Stefanie, the reporting for the grant will be submitted as appropriate to the funding source. This process will remain in effect until such time as we have a more junior staff person who can prepare the reporting and submit it to me for review. Please let me know if you have any questions about the proposed resolution approach. ????????????????? Thomas Sussman Vice President, Finance & Business Operations

2022-003 Financial Reporting Corrective Action Plan (CAP): 1. Explanation of Disagreement with Audit Finding There is no disagreement with the audit finding. 2. Actions Planned in Response to Finding Additional training will be provided to the appropriate individual submitting the claims for reimbursement. 3. Official Responsible for Ensuring CAP The District?s Superintendent in conjunction with the Business Manager are the officials responsible for ensuring corrective action. 4. Planned Completion Date for CAP December 31, 2022 5. Plan to Monitor Completion of CAP The Superintendent and Business Manager will monitor the submission of the claims for reimbursement.

FINDINGS?FEDERAL AWARD PROGRAMS AUDITS U.S. Department of Housing and Urban Development 2022-002 Public Housing Capital Fund ? Assistance Listing No. 14.872 Recommendation: The Housing Authority should timely submit a voucher to disburse funds for bills due and payable for work that has already been performed or for items received. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Timely draws are being done Name(s) of the contact person(s) responsible for corrective action: Chris Bradburn Planned completion date for corrective action plan: 07/01/2022 If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call Cynthia Hall at 859-655-7306.

Management has added another a third layer of federal award invoice approval prior to submission of the monthly submission for reimbursement.

Adults? & Children?s Alliance is submitting the following Corrective Action Plan for Significant Deficiency found during audit for FY22 (10/1/2021-09/30/2022) Found in Section II ? Financial Statements Findings 2022-001 ? Lack of Segregation of Accounting Duties (Repeat finding 2021-001) Criteria: Proper internal control structure includes review of journal entries, bank reconciliations and the schedule of expenditures of federal awards, as well as an adequate system for recording and processing entries to the financial statements, in accordance with generally accepted accounting principles. Condition: The limited number of staff in the accounting department results in certain functions that are not properly segregated which normally would enhance internal control, including the lack of review of journal entries, bank reconciliations, and the schedule of expenditures of federal awards. Cause: The internal control structure does not provide an appropriate segregation of duties for the financial reporting process. Effect: Although this condition is not unusual for an entity the size of the Organization, the condition may affect the Organization's ability to initiate, record, process, and report financial data consistent with the assertions of management in the financial statements. Recommendation: It is the responsibility of management and those charged with governance to determine whether to accept the risk associated with this condition because of cost or other conditions. We recommend the Organization evaluate current procedures and segregate where possible and implement compensating controls.Responsible Official?s Response: Management will evaluate current procedures and segregate where possible and implement compensating/alternative controls appropriately according to staffing and budget. Corrective Actions: ACA will continue to work with Bottom Line Accounting Services when finances do not align Lisa Dunlap, the Executive Director, works with Bottom Line Accounting Services to find resolution. Lisa Dunlap, Sandra Lee the CACFP Director and Denise Hess additional staff will work together for checks and balances for payroll, Quick Books for accounts payable/receivables, journal entries, banking, and CACFP program as well as any other financial activity. Quick books ? data entry Accounts payable Accounts receivable Roles and Responsibilities for Bottom Line Accounting Services Outline best practices for QBO JE?s, Deposits, or other entries for clear tracking. ? Review client posted payroll tax postings. ? Review organizations key transactions and financial statements for previous months ? Create and recommend posting monthly accounting allocations and/or adjustments. ? Assist staff with monthly accounting close and recommend appropriate accounting systems to ? be set up. Review reconciled monthly banking and investment accounts and maintain required ? supporting schedules. Provide QuickBooks online accounting support and QB training requested. ? Perform quarterly reconciliations of designated general ledger accounts. ? Assist clients as requested with preparations of annual audit. ? Recommend modifications to chart of account structure from information provided by client ? to enhance retrieval of necessary financial information. Completion time: On going. Contact person: Lisa Dunlap Lisa.dunlap@acainc.org 651-481-9320 2022-002 - Reporting Information on the SEFA Criteria: 2 CFR Part 200.510(b) states that the auditee must prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements which must include the total federal awardsexpended. Federal program and award identification must include, as applicable, the Assistance Listing Number and title, the federal award identification number and year, the name of the federal agency, and the name of the pass-through entity, if any. This information enables the auditee to reconcile amounts presented in the financial statements to related amounts in the schedule of expenditures of federal awards. Condition: Management did not have a process in place to prepare a complete schedule of expenditures of federal awards, including identifying COVID-19 funding. The audit firm cannot serve as a compensating control. Cause: Proper processes were not in place for management to prepare the schedule of expenditures of federal awards. Potential Effect: As a result of this condition, there is a higher risk that the schedule of expenditures of federal awards could be incomplete or contain errors that are not detected. Recommendation: The Organization should review its policies and procedures to ensure all expenditures charged to federal grants are properly identified, recorded in the general ledger, and reflected on the schedule of expenditures of federal awards. Responsible Official's Response: Management is now aware that Emergency/Covid funds should have been separated by line when reporting even though from the same source, grant and pass-through grant number. Corrective Actions: SEFA The Schedule of Federal Awards report is completed by Lisa Dunlap with review from Bottom Line Accounting Services. Funding strands will be broken out and identified accordingly by funding type, grant number, pass through grant number as well as identified in general ledger with same information. Completion time: On going. Contact person: Lisa Dunlap Lisa.dunlap@acainc.org 651-481-93 202022-003 ? Meal Counts Federal Program: Assistance listing number 10.558, Child and Adult Care Food Program ? United States Department of Agriculture Compliance Requirement: Eligibility Criteria: A properly designed system of internal control over compliance with the requirements of federal programs allows entities to meet those requirements set forth by the federal government. Under the Child and Adult Care Food Program, the Organization is required to monitor eligibility of meals being reimbursed to providers. Condition: 1 of the 40 providers tested for meal counts had discrepancies. The provider's reimbursement improperly included 2 additional breakfast meal counts. Cause: The Organization noted a deduction of a breakfast count should have been made, however rather than deducting another breakfast count was added resulting in 2 additional breakfast meal counts. Questioned Costs: The results of this noncompliance did not result in any questions costs. Potential Effect: As a result of this condition, there is a higher risk that the provider meal counts are inaccurately reimbursed. Recommendation: The Organization should review its policies and procedures to ensure all provider meals charged to federal grants are properly reflected in the reimbursement request. Responsible Official's Response: This was a human error; management will continue to follow policy and procedures in place to ensure all meals charged to the federal grant are properly reflected in the reimbursement request. Corrective Actions: The 1/40 provider meal count finding was human error. Management will continue to follow the policies and procedures set in place to ensure all meals charged to federal grants are properly reflected in the reimbursement request. Completion time: On going. Contact person: Lisa Dunlap Lisa.dunlap@acainc.org 651-481-9320

Finding #2022-001 ? ALN 84.010, Title ? ISAS; L. Financial Reporting Corrective Action Planned: The District will implement controls to ensure reimbursement requests include proper expenditures. Anticipated Completion Date: November 2022

Contact Person ? Shane Tappe, Superintendent Corrective Action Plan ? Will establish control procedures over meal reimbursement reporting. Completion Date ? December 20, 2022

U.S. Department of Agriculture Finding 2022-004: Child Nutrition Cluster Resource Management Procedures Recommendation: The School District should develop and complete a spend-down plan to ensure it reduces its Food Service Fund net cash resources below the maximum allowable amount. Action Taken: The district has submitted a spend-down plan to the Michigan Department of Education. That plan was approved and an extension of time was granted by MDE to allow the School District to implement it through the 2022-23 fiscal year. The School District has been buying equipment and seeking bids on additional equipment. The School District is also continuing its approved use of the Community Eligibility Provision to provide free lunches to all students. Responsible Person and Anticipated Completion Date: The Director of Finance and Food Service Supervisor will be responsible for reducing the fund balance in a responsible way. Due to the scope of the issue and potential solutions, implementation will occur through the 2022-23 year. If the Michigan Department of Education has questions regarding this plan, please call Jerry McDowell at (231) 893-1005.

Name of Contact Person: Samuel A. Jones, President, Amurcon Realty Co., Managing Agent Corrective Action: Residual receipts were not remitted to the residual receipts account in a timely manner. Residual receipts are required to be remitted within 60 days of year-end. In order to avoid this issue in the future, surplus cash will be calculated prior to the audit. Proposed Completion Date: This plan was implemented on September 17, 2022, and will be used for all audits going forward.

The District will review their current needs for equipment, charges for student meals, etc. and develop a plan for the reduction of cash balances in the lunchroom fund during the current year ended August 31, 2023.

Recommendation: Training of staff should be performed to bring the staff up to date with the implementation of all residual receipts compliance requirements. Action Taken: The Organization will request HUD approval to pay back the excess residual receipts balance.

View of Responsible Officials and Planned Corrective Actions ? Surplus cash is calculated on a monthly basis. All residual receipts are required to be deposited in a separate federally insured account within 60 days of the fiscal year-end. Burrell Housing Springfield deposited cash surplus into a residual receipts account for fiscal year-end June 31, 2021, however the funds were not deposited until after the 60-day deadline. Written instructions are included on the surplus cash calculation spreadsheet to ensure compliance. Responsible party is now Cris Desjardins, Senior Accountant.

Finding Reference Number: 2022-002 Concur or Do Not Concur: Concur Agree or Disagree with Auditor Recommendations: Agree Actions Taken or Planned on the Finding: Management agrees with the finding. The residual receipts account deficiency was funded on February 25, 2022 in the amount of $46,893. Management will ensure that the residual receipts account is properly funded in the future. Completion Date: February 25, 2022

Finding Reference Number: 2022-001 Concur or Do Not Concur: Concur Agree or Disagree with Auditor Recommendations: Agree Actions Taken or Planned on the Finding: Management agrees with the finding. The excess funds were accrued to submit to HUD. Completion Date: August 3, 2022

Finding Reference Number: 2022-001 Concur or Do Not Concur: Concur Agree or Disagree with Auditor Recommendations: Agree Actions Taken or Planned on the Finding: Management agrees with the finding. The residual receipts account deficiency was funded on February 28, 2022 in the amount of $1,601. Management will ensure that the residual receipts account is properly funded in the future. Completion Date: February 28, 2022

DTC had multiple key leadership changes shortly prior to and during the financial audit. DTC will ensure related policies and procedures are updated, staff trained, and documented evidence is maintained. DTC will comply with 2CFR section 200.305 requirements.

Finding 2022-001 a. Comments on the Finding and Each Recommendation Management agrees with the finding. b. Action(s) Taken or Planned on the Finding The Residual Receipts deposit was not made timely due to a turnover in staff. Management has trained all accounting staff on this process and the Controller has implemented tracking procedures to insure timely deposits.

Purchase Needed Equipment

2022 003 - Internal Controls over Cash Draws Material Weakness Federal Program WIOA Covid 19 Employment Recovery - Assistance Listing Number 17.277 Auditor's Notes An effective system of internal controls over compliance is required to ensure that grants are being administered properly. This includes a system to ensure that invoices for each program are being reimbursed by the correct granting agency and for the correct grant. During the FY 2021 audit, we noted instances where invoices that were reimbursed by a program were subsequently moved to another fund due to a correction of an error. When this occurs, the expense is moved to the other fund, and cash is reimbursed to the initial fund, however, the funds that were drawn down in error are not being remitted back to the granting agency. Rather, the excess funds are held and applied to subsequent invoices that are to be reimbursed by that program, reducing the reimbursements by the amounts of excess cash held. Given that the FY 2021 audit was not issued until late September 202 , this was a known issue during FY 2022 and will remain a finding in the current year. Management's Response San Diego Workforce Partnership conducts a thorough review of invoices and will monitor reclasses to ensure they are being placed in the appropriate funds and not resulting in any excess funding. Once identified, we will assess the balance, report to the proper authorities and remit as required. This is in effect as of Sept 30, 2022. The Controller and VP of Finance will be responsible in ensuring this system is followed.

Recommendation: We recommend the Project review controls to include timely review of year-end financials and surplus cash calculation so surplus cash is deposited timely