Corrective Action Plans

Name of auditee: Friendship Manor Housing Development Fund Company, Inc. Project No.: 01411252 TIN: 20-8665 840 Name of audit firm: EFPR Group, CPA, PLLC Period covered by audit: March 31, 2022 CAP prepared by: Andrea D. Mays President ADM Management Group, Inc. (716) 892-1799 Finding 2022-001 Management understands HUD's requirements for depositing surplus cash into the residual receipts account and will deposit the delinquent deposit of $7,133 into the residual receipts by July 8, 2022.

Purchase Needed Equipment

Finding Number 2022-003 ? Description ? Program staff do not prepare a reconciliation of amounts received for a given month with what was actually disbursed on a monthly basis. ? Views of Responsible Officials and Planned Corrective Action ? We agree with the finding. We will create an Excel spreadsheet with each of the provider names and amount the provider requested and the actual amount paid each month. If there is a difference, it will be noted on the spreadsheet. ? Names and Title of Responsible Official ? Kathy Sabitsky, Finance Manager. ? Anticipated Completion Date ? October 2023.

February 21, 2023 To Whom It May Concern: RE: Grants for Capital Development in Health Centers Assistance Listing # 93.526, Finding 2022-002 Corrective Action Plan During our fiscal year 2022 audit, the Organization drew down grant funds under this award and spent them on expenditures that were not allowable. This was a clerical error as finance staff thought they were drawing down funds under the Community Health Center grant instead of this capital grant. The draw was used to pay salaries instead of capital items that this grant was intended for. We have self-reported this issue to HRSA and have been approved to transfer these funds to the appropriate award so they could be spent properly. Although controls are in place to help prevent these types of errors to occur and were effective for the Organization?s other Federal awards, they were not effective for this award. We have reviewed our grant drawdown procedures and have discussed this error internally with finance staff and provided training as appropriate. Our audit partner has discussed this issue with the Organization?s Chief Executive Officer (CEO) and the Board of Directors. A robust discussion occurred in our February board meeting about this issue, how it occurred and what measures need to be taken to help prevent this type of error in the future. At this time, all corrective actions have been taken. We are currently without a Chief Financial Officer but K. Brooks Miller, CEO supervised these corrections and took responsibility to make sure these corrective actions were taken.

CORRECTIVE ACTION PLAN Finding 2022-001: Immaterial Noncompliance Federal Award Finding This finding is caused by the District?s Food Service Fund?s fund balance being over the USDA?s threshold of 3 months average expenditures. The District is fully aware of this situation and has a spend down plan in place to help alleviate the excess fund balance down to a reasonable level and anticipates the completion date for the corrective action plan to be before the end of the 2022-23 fiscal year. The persons responsible for the corrective action are Gennie Knapp, the director of dining and nutrition services and Emily Kearney, chief financial officer. The plan for monitoring adherence is the food service director and chief financial officer will work together to assess where the fund balance is after all of the projects from the spend down plan are completed.

Finding No. 2022-001 ? Activities Allowed or Unallowed; Allowable Costs; and Reporting Identification of the federal programs: Federal Grantor: United States Department of Health and Human Services (HHS), Health Resources and Services Administration (HRSA) Assistance Listing No.: 93.498, COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Pass-Through Award Numbers: Not applicable Pass-Through Award Period of Performance: 07/01/2021?06/30/2022 Views of responsible officials and planned corrective actions: Although not in place the entire period of performance, effective March 31, 2022, the Financial and Data Analytics Director began conducting spot testing of each bi-weekly payroll expenditure report received from Human Resources for eligible PRF reporting and retains evidence of this testing.

Finding No. 2022-002 ? Activities Allowed or Unallowed; Allowable Costs and Eligibility ? Significant Deficiency in Internal Control Over Compliance Identification of the federal program: Federal Grantor: United States Department of Health and Human Services, Health Resources and Services Administration (HRSA) Assistance Listing No.: 93.461, HRSA COVID-19 Claims Reimbursement for the Uninsured Program and the COVID-19 Coverage Assistance Fund (Program) Pass-Through Award Numbers: Not applicable Pass-Through Award Period of Performance: 07/01/2021?06/30/2022 Views of responsible officials: December 31, 2022, the Company completed its evaluation of additional EPIC automated processes and opportunities to add documentation to evidence HRSA claim reviews. Additional opportunities to add documentation in EPIC were not identified. Testing and treatment claims under the above federal program are no longer accepted after March 22, 2022 and vaccine claims are no longer accepted after April 5, 2022. Should the program return, the Company would support either internal claim compliance spot testing, with evidence of this testing retained, or an EPIC system software audit of the automated processes.

Audit Finding Reference: 2022-001 Planned Corrective Action: The Town plans to formalize written policies and procedures related to Federal awards as required under Uninform Guidance. Specifically, there will be formalized written policies regarding cash management, allowable costs, program income/requesting reimbursement, eligibility determination, equipment and real property management, subrecipient monitoring, and period of availability. Additionally, the written policies around procurement will include standards of conduct over conflicts of interest and procedures for evaluating vendors for suspension and debarment. Name of Contact Person: Laurianne Galvin, Acting Finance Director Finance Department 235 North Street North Reading, MA 01864 Phone: 978-357-5224 Email: lgalvin@northreadingma,gov Anticipated Date of Completion: between September 30, 2023 and October 31, 2023. The Town?s Select Board must approve this written policy and approval is dependent upon their meeting schedule, which could be inconsistent during the summer months.

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: June 30, 2023

Finding 2022-004 ? Child Nutrition Cluster - Reporting Contact Person Responsible for Corrective Action: Christopher deBruyn Contact Phone Number: (219) 785-2239 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: Moving forward, after the claims report has been processed by the Food Service Director a documented review will be completed by the Food Service Manager or a member of the corporation staff, Signatures will be required for proof of verification, and review. Anticipated Completion Date: Now

Organization's Response: In the future, if any grants contain payroll element, we will ensure that time sheets are properly reviewed for allowable costs when preparing payroll amounts to be reimbursed/ requested under the grant.

November 30, 2022 NYS Education Department Office of Audit Services 89 Washington Ave. Room 524 EB Albany, NY 12234 Dear Sir/Madame: The purpose of this correspondence is to provide your office with the Afton Central School District?s response to the management letter as written by district auditors. D?Arcangelo & Cp, LLP. Po Box 4300 Rome, NY 13440 Federal fund single audit: 2022-001 -Inaccurate federal grant expenditure reimbursement The Auditor recommends FS-25?s be completed for expenditure reimbursement for items directly pertaining to the specific grant. Grant reimbursement should not be grouped, but rather individual FS-25?s completed for each grant containing only expenditures applicable to the grant. District Response: Planned Action: The district has corrected the accounting software account codes to separate out the 4 parts of the ARP ESSER 3 grant. This will allow the district to complete the FS-25?s accurately. Contact Person Responsible for corrective action: Kristyn DeGroat, Business Manager Date of Completion: April 1, 2022

Finding 2022-002 Reporting ? Internal Control and Compliance over Reporting (Significant Deficiency) Criteria: CODE OF FEDERAL REGULATIONS, Title 49 ? TRANSPORTATION, Part 18 ? UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS, Subpart C ? Post-Award Requirements: 18.41 Financial Report (a) General (4), Due date. When reports are required on a quarterly or semiannual basis, they will be due 30 days after the reporting period. When required on an annual basis, they will be due 90 days after the grant year. Final reports will be due 90 days after the expiration or termination of grant support. 18.58 (a) General. The Federal agency will close out the award when it determines that all applicable administrative actions and all required work of the grant has been completed. 18.50 (b) Reports. Within 90 days after the expiration or termination of the grant, the grantee must submit all financial, performance, and other reports required as a condition of the grant. Upon request by the grantee, Federal agencies may extend this time frame. These may include but are not limited to: (1) Final performance or progress report, (2) Financial Status Report (SF 269) or Outlay Report and Request for Reimbursement for Construction Programs (SF-271) (as applicable), (3) Final request for payment (SF-270) (if applicable), and (4) Invention disclosure (if applicable). U.S. OFFICE OF MANAGEMENT AND BUDGET CIRCULAR A-133?AUDITS OF STATES, LOCAL GOVERNMENTS, AND NON-PROFIT ORGANIZATIONS (OMB Circular A-133), Subpart C? Auditees, Section .300?Auditee Responsibilities (b) Maintain internal control over federal programs that provides reasonable assurance that the auditee is managing federal awards in compliance with laws, regulations, and the provisions of contracts or grant agreements that could have a material effect on each of its federal programs. Condition: For the Airport Improvement Program (AIP), the City did not submit the reports within the required deadline: Report Type Award Number Period Date Due Date Submitted SF-425 Financial 3-06-0034-018-2020 10/1/20 ? 9/30/21 12/31/2021 Not submitted SF-271 Financial 3-06-0034-018-2020 10/1/20 ? 9/30/21 12/31/2021 Not submitted SF-425 Financial 3-06-0034-021-2021 6/1/21 ? 9/30/21 12/31/2021 Not submitted SF-271 Financial 3-06-0034-021-2021 6/1/21 ? 9/30/21 12/31/2021 Not submitted Four (4) financial reports were tested and all reports were not submitted by the required deadline. City?s Corrective Action Plan: Finding Auditor Recommendation Action Plan Finding 2022-002: Internal Control and Compliance over Reporting (Grant Reports) ? We recommend that the City strengthen their report submission process and procedures to ensure all required (Grant) reports are properly review and approved and submitted timely. By August 1, 2023 ? The Finance Director will prepare an annual calendar with assembly and submission dates for each required monthly, quarterly, and annual grantee reports ? Staff members in both Program and Finance Departments will be assigned to prepare and cross-check required grant reports Contact person responsible for corrective action: Sandra Fonseca, Interim Finance Director Anticipated completion date: August 1, 2023

Condition The District submitted inaccurate meal counts for reimbursement. Recommendation We recommend that the District review its controls related to monthly reimbursement requests for the Child Nutrition Cluster in order to ensure that accurate meal counts are submitted. Action Taken The School District has resubmitted the December 2021 meal count claims, which have been approved by KSDE. As of August 2022, paper meal count sheets are no longer being used to account for meals, and the Food Service Program is back to using their POS eTrition for meal counting, which will reduce the errors of meal claims. Steps when preparing to submit meal claims will be as follows: 1. Managers at each school will ensure meal counts on their 9-A & 9-B excel forms match their eTrition meal counts. 2. The Production Records Secretary will double check that the 9-A & 9-B excel forms that were turned in match the meal counts in eTrition. 3. The Director will input the claims based off of the 9-A & 9-B excel forms. 4. The Director will have the Office Manager double check that the claims were input into KN-Claim correctly before the Director will make the final submission.

Corrective Action Plan - 55 - January 25, 2023 Cognizant or Oversight Agency for Audit Unified School District #244 respectfully submits the following corrective action plan for the year ended June 30, 2022. Name and address of independent public accounting firm: Jarred, Gilmore & Phillips, PA, P.O. Box 779, 1815 S Santa Fe, Chanute, Kansas 66720. Audit period: Year ended June 30, 2022. The findings from the January 25, 2023 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Finding 2022-001 ? Misreported Checks Condition: During our review of Accounts Payable, it was noted that the use of split checks led to a check number designated for supplies being used to pay a different vendor for payroll taxes. Recommendation: Procedures should be implemented the only allow for check numbers to be used for one vendor only and those encumbered funds that aren?t fully spent be credited back to the original funds. Action Taken: Split checks will no longer be used and all current outstanding split check numbers have been reviewed in the accounting software to ensure that the checks have only been written to the appropriate vendor and that those outstanding split checks were only used on the appropriate vendors as stated in the original purchase order. Anticipated Completion Date: February 2023 Finding: 2022-002 ? Meal Reporting Condition: During our testing of meal reporting, we tested two months of meal report claims submitted to the State and traced to individual count sheets per school. It was discovered in one month three meals were over reported and six meals the second month were over reported. Recommendation: Policies and procedures should be written to provide internal control over meal reporting. We recommend the District establish a review process, such as having another individual review count sheets and compare them to the number of meals submitted, to ensure all meals submitted for reimbursement are for the correct number of meals. - 56 - Action Taken: We are in agreement and since the 2022 fiscal audit took place, the District has updated their processes to include a review of all count sheets to ensure that the correct number of meals are being submitted for reimbursement. Anticipated Completion Date: October 24, 2022 Should the Oversight Agency for Audit have questions regarding this plan, please contact Christy Hess, Business Manager/Board Clerk, at (620) 364-8478. Sincerely Unified School District #244 Unified School District #244

Material weakness in internal controls over compliance and instances of noncompliance related to cash management. Contact Person(s): Beth Mizushima, Chief Operating Officer, mizushimab@crhn.org; and Connie Sowa, Compliance, Governance and Contracts Officer, sowac@crhn.org. Explanation and specific reasons for disagreement with the audit finding or that corrective action is not required (if applicable): Not applicable. Corrective action planned: We agree that the one cash draw in FY22 was made without incurring sufficient expenditures towards the related award. In FY23 we have committed additional resources and staff to review expenditures from FY22 and FY23 to ensure that all project expenditures were allowable under each grant prior to drawing revenue in FY23. Additionally, in FY23 we have established a Compliance, Governance and Contracts Officer position, which provides increased oversight, approval to support drawdowns for Federal funds and to ensure compliance, adherence to requirements and improving overall internal controls and accounting processes. Anticipated completion date: We have ensured that FY23 draws are determined by the allowable expenditures for each grant. The improved accounting processes and internal controls will occur by September 30, 2023. The accounting process for Draws is included in the Accounting Manual.

Findings and Questioned Costs Related to Federal Awards Finding Number: 2022-001 Program Name: Child and Adult Care Food Program (CACFP) Assistance Listing Number: 10.558 Anticipated Completion Date: July 1, 2023 Planned Corrective Action: We concur with the condition. Mid-State Child Care will conduct technical assistance with staff on reviewing the menus/meal counts for accuracy, dates received, and children in attendance, ratios, creditable meal components and eligibility regarding certification prior to the preparation of the reimbursement claim. The menu reader/co-director will initially review provider menus for mathematical accuracy prior to submitted to the Program Director to double check the total calculated by menu reader/co-director. The Program Director is responsible for final review and approval prior to preparation of the reimbursement claim. The initial and final reviews of the menus will be completed and documented monthly to ensure that all program requirements are complied with. The provider menu review documentation will be kept on file in the file cabinet of the menu reader/co-director office. When preparing revised monthly claims, a copy of the original admin claim will be attached to insure the monthly administrative labor costs are reported correctly. Mid-State Child Care & Nutrition has implemented this corrective action effective fiscal year 2023.

Finding Number: 2022-001 Planned Corrective Action: Accurate count of student meals Anticipated Completion Date: 08/01/2022 ? implementation date Responsible Contact Person: Megan Schweller, Food Service Supervisor Action Plan: To ensure accurate daily meal counts and recordkeeping, Infinite Campus, a new Point of Sale System, has been implemented into the Food Service Department, effective 08/01/2022. This system streamlines a more effective transaction process, as well as enables the department to better retain transaction histories on a daily, monthly, and yearly basis. Daily counts are recorded electronically through the system, thus eliminating the manual counting of student meals.

U.S. Department of Housing and Urban Development Susanne Corporation respectfully submits the following corrective action plan for the year ended June 30, 2022. Name and address of independent public accounting firm: KPM CPAs, PC 1445 E Republic Road Springfield, Missouri 65804 Audit period: July 1, 2021 through June 30, 2022 The findings from the June 30, 2022 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 Significant Deficiency 2022-001 Financial Reporting Recommendation: Management should review and update monthly and year-end closing procedures to ensure controls over financial reporting are sufficient for financial statements to be prepared in accordance with accounting principles generally accepted in the United States of America. Action Taken: Management agrees with the finding and year end closing procedures will be changed to reflect appropriate accounting principles. Findings ? Major Federal Award Program Audit Significant Deficiency 2022-002 Written Uniform Guidance Policies and Procedures Recommendation: We recommend Susanne Corporation draft and adopt written procedures in accordance with Uniform Guidance requirements. Action Taken: Management agrees with the finding and is in the process of drafting and implementing written procedures for cash management and determining the allowability of costs in accordance with Subpart E ? Cost Principals. If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call Joey Wilke at 417-366-3440.

Finding ref number: 2022-001 Finding caption: The District did not have adequate internal controls for ensuring compliance with allowable activities and costs and restricted purpose requirements. Name, address, and telephone of District contact person: Mike Merlino, Executive Director of Business, Finance and Operations 18360 Caldart Avenue, NE, Poulsbo, WA 98370 Tel: (360) 396-3010 Corrective action the auditee plans to take in response to the finding: The district will establish internal controls to ensure staff fully understand the requirements for ECF award. The district will recall the non-federally funded devices and exchange them for ECF funded devices. Anticipated date to complete the corrective action: August 31, 2023

Finding Number: 2022-002 Condition: As part of the Period 1 portal submission, the Hospital included $5,268,942 of eligible expenses. Within its listing of eligible expenses for reimbursement, the Hospital submitted a purchase order for $4,810 which included items that were also submitted to reimbursement from other sources and items that were ineligible for reimbursement under the grant, as the expense was not tied to COVID-19. Planned Corrective Action: The Hospital will review its processes surrounding the methodologies used to complete portal submissions and will implement additional levels of review to ensure that the proper reporting is followed in future portal periods. This additional level of review included verifying there is an actual paid invoice used as verification of the expense versus accrued value. Contact person responsible for corrective action: Brenda Winn and Alex Roehling Anticipated Completion Date: 12/14/2022

Finding #2022-005 ? Education Stabilization Fund ? ESSER I and ESSER II #84.425D (Prior Year Finding #2021-007) Federal Grantor ? U.S. Department of Education Pass-through Award Numbers ? 2021-224904-DPI-ESSERF-160 and 2022-224904-DPI-ESSERFII-163 Pass-through Entity ? Wisconsin Department of Public Instruction Condition: There were two Education Stabilization Fund construction projects performed by contractors. ESSER I grant expenditures for the project totaled $10,445 and ESSER II grant expenditures for the project totaled $21,238. There was not a prevailing wage clause in the contract and certified payrolls were not received while construction was occurring. Labor costs for the ESSER I project totaled $2,691. Labor costs for the ESSER II project totaled $2,800. Criteria: Wage rate requirements apply to the Education Stabilization Fund when laborers and mechanics employed by contractors or subcontractors work on construction contacts more than $2,000. Laborers must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their contracts subject to wage rate requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. This includes a requirement for contractor or subcontractor to submit to the District weekly payrolls and a statement of compliance (certified payrolls). Cause: The District was not aware that wage rate requirements applied to the construction project until after it was completed. Effect: Potential reimbursement for costs that did not follow the prevailing wage rate requirements. Recommendation: Establish controls to comply with prevailing wage rate requirements related to the Education Stabilization Fund. Response: The District is working with each contractor and their attorneys to determine the amount of backpay owed to employees to ensure prevailing wage rates are paid. Once the District became aware of this requirement, all construction contracts in excess of $2,000 funded with federal dollars a prevailing wage rate clause in the request for bid and contract. Certified payrolls are being receiving on all current applicable projects. Contact Person: Tracy Stagman Anticipated Completion: June 30, 2023

SY2021-22 AUDIT FS 2022-001 Internal Controls Over District Cash (Material Weakness) Repeated And Modified ? This has been an ongoing process to achieve final reconciliation. In SY21-22 the District worked with PED to facilitate a second Permanent Cash Transfer request in order to reconcile closed or unused funds. The approval from PED was not received prior to the closing of the fiscal year ? The District has worked closely with PED to re-apply for the Permanent Cash Transfer and has come to agreement on which funds will be transferred ? The District is working with a CPA firm to properly adjust cash balances and has developed a new procedure and checklist for completing the ?rollover? of funds from the prior year ? The District now has a new procedure to more accurately record the Health and Well-Being employee reimbursements and will include a review of this process each quarter when the District meets with the CPA to conduct a mini-audit ? The correct accounts and procedures for properly recording Bond proceeds have been established FS 2022-002 Budgetary Controls (Significant Deficiency) Repeated and Modified ? The District provided additional training for staff using the Visions accounting system so that errors related to inputting the budget in the accounting system will be reduced ? The District also implemented a process whereby funds submitted and approved in OBMS can be compared to on a monthly basis with the actual expenditures coded in Visions ? Our Coordinator for Procurement and Capital Projects now meets monthly with fund managers to ensure that all expenditures match the budgeted amounts and are coded in the correct object ? A new process was implemented to record Bond interest within Visions so that the cash is more accurately reflected and matches the bank balances ? Journal entries are reviewed weekly to ensure proper allocation ? The bank reconciliations are reviewed now by a second Business Office employee ? All fund balances are now checked before a purchase order is approved ? Business Office personnel will meet quarterly with our CPA to review transactions for accuracy and to review any process improvements necessary FS 2022-003 Lack Of Internal Controls Over Payroll Liabilities Accounts And RHC Payments (Material Weakness) ? Segregation of duties were re-established so that the payroll clerk would be responsible for timely submission and reporting of payroll liabilities ? The District Accountant will be responsible for bank reconciliations as well as for verifying outstanding liabilities each month FA 2022-004 Non-Compliance With Davis-Bacon Act And Capital Expenditure Requirements (Significant Deficiency) ? The District has developed new language that will be included in all agreements for project meeting the criteria of the Davis-Bacon Act and will include the language in all applicable purchase orders ? The District has reviewed all currently-qualified projects and has obtained the required certified payroll reports for projects commencing or continuing in SY22-23 ? The Director for Student Services (Federal Programs) has created a checklist for obtaining permission to purchase at $5,000 or above for single items ? The District has established a protocol for including the written permission from PED in the documentation accompanying the purchase requisition and purchase order NM 2022-005 Improper Approval Of Budget Adjustments (Other Non-Compliance ? The Business Office has a process documented to ensure BARs are properly obtained prior to any use of funds NM 2022-006 Purchase Order And Authorization (Other Non-Compliance) ? The District continues to provide regular training (4 x per year) to school site and department staff who have access to purchase requisitions, though the problem persists ? The District has implemented a new vendor agreement as well, outlining the specific terms vendors must adhere to as vendor the District. One of the terms is that the vendor will not perform any service nor provide any product without first receiving a signed and authorized purchase order NM 2022-007 Timeliness Of Deposits (Other Non-Compliance) Repeated And Modified ? The District has made steady and deliberate moves to eliminate cash collected from all events, concessions and fundraising efforts by moving to a cashless system ? This process has still not been completely implemented because not all locations in all sites had wifi accessible internet access. The District has been working to correct that ? All school sites and cafeteria workers have been trained on the cashless system and in all but a two locations, the program has been fully implemented NM 2022-008 Failure To Timely remit Federal Withholding Taxes As Required (Other Non-Compliance) Repeated And Modified ? The District recognized that when supplemental payrolls were run after the regular payroll, the required payroll taxes for those particular supplemental payrolls were not made on the same day that supplemental payroll was run. Because of this, the District also recognized this was a repeated finding and a new procedure was established that required all payroll taxes to be prepared and the payment processed on the same day payroll was uploaded to the bank. NM 2022-009 Equity In Athletics Reporting (Other Non-Compliance) ? The District has placed on its calendar, reminders of when the Title IX report is due in the fall ? The District has determined that the three Athletic Directors (Grants High School, Laguna Acoma High School and Los Alamitos Middle School) will be responsible for gathering the data required to file the report ? The athletic directors will receive training on how to properly complete the report and upload it to the PED site NM 2022-010 Background Checks and I-9 Documentation (Other Non-Compliance) Repeated And Modified ? The HR Department has reviewed every single personnel file and identified those individuals who required an updated FBI check ? The HR Department contracted with a mobile fingerprinting provider and scheduled over 150 employees for updated fingerprinting and completed updated background checks ? The HR Department will implement a new 24-month cycle review and establish a rotating schedule to regularly update required background checks NM 2022-011 Failure To Complete An Annual Physical Inventory And Complete Certification By The Board (Other Non-Compliance) ? In SY21-22 the District began a complete inventory of all assets. The process was not completed until the beginning of SY22-23. Prior to this, an accurate accounting of assets was not updated. ? In the Fall of 2022 the board approved the newly-completed asset list and depreciation schedule ? Moving forward, each July the board is scheduled to receive an updated listing of assets for review and approval. NM 2022-012 Late Filing Of Audit Report (Other Non-Compliance) ? The District is working with a CPA firm to assist in quarterly mini-audit reviews in an effort to spot any anomalies that may delay the audit filing Responsible Party For Completing These Corrective Actions C Steven Maldonado, Director of Finance

Finding: 2022-001, Significant Deficiency over Controls and Compliance Name of Contact Person: Terri Prots, Director Corrective Action/Management?s Response: Aging staff entering units into Aging Resource Management System (ARMS) will follow the ARMS schedule as posted by the NC Division of Aging and Adult Services. In the event that the Aging staff does not have sufficient information for a timely submission, an email identifying the reason why will be sent to the Aging Services Director and saved to the file. Submission of ARMS units will be verified each month by two Aging staff with the Aging Services Director signing and dating the report as additional verification. A hard copy will be kept in the file. In addition, hard copies will be made of ?real time? reports, specifically the ZGA 544 and ZGA 542. ZGA 544 and ZGA 542 will be included along with other ZGA reports sent to Finance on a monthly basis as additional verification that the reports are balanced. If a prior month correction should be required, staff will follow procedures outlined by the State and will ensure documentation of prior corrections is placed with the monthly report in which correction is completed. Finally, prior to being sent to Finance, the units on ZGA 370 will be verified that they match the units that were submitted. Proposed Completion Date: As soon as the issue was pointed out to use by the auditor, we corrected this issue with the submission of October?s 2022 units which were submitted in November 2022.

SECTION II - FINDINGS AND QUESTIONED COSTS - FINANCIAL STATEMENTS AUDIT Name of Contact person ? Amy Petersen, Finance Manager Corrective action ? CICC will develop a process to track expenses incurred. Before the accounting records are closed for the year, a review should be performed to ensure expenses incurred prior to year-end are captured in the accounting records. Any expenses noted that required accrual will be reviewed for reimbursement eligibility and, if applicable, the related revenue will be accrued. Proposed completion date ? Management and the Board of Directors will implement the above procedures immediately.