Corrective Action Plans

Corrective Action Plan Finding: 2024-002-Administration of the Homeownership Program and FSS Programs Need Improvement-Special Tests Condition: FSS A recently hired case worker is adequately tracking three participants in the program. However, two participants have graduated. They should be notified that they are due funds if they elect to draw them now. The liability to the two tenants at September 30, 2024 is a total of $3,976. In addition, there is no documentation in the files that recent new people to the program were made aware that if they chose to, they could participate in the program Homeownership For the last several years, the various E.D.s have asserted that they were behind in updating the status of Homeownership participants. They provided no lists of enrollees. However, in the current audit period, a case worker has found a list dated September 30, 2015 of 13 participants. A review has found an additional enrollee. The review has determined that of the 14 total, 6 are no longer on the program. The status of the other eight is presently not known. Corrective Action Planned: We will review all of the above at our next board meeting. But initially, I agree with the above recommendations. Person responsible for corrective action: Louie Alfaro, Executive Director Telephone: (915) 886-4650 Housing Authority of the Town of Anthony, Texas Fax: (915) 886-2296 1007 Franklin Anthony, TX 79821 Anticipated Completion Date: September 30, 2025

ANTHONY HOUSING AUTHORITY PHONE: 915-886-4650 ·FAX:915-886-2296 1007 FRANKLIN ANTHONY, TEXAS 79821 HOUSING AUTHORITY OF ANTHONY, TEXAS CORRECTIVE ACTION PLAN YEAR ENDED SEPTEMBER 30, 2024 Corrective Action Plan Finding: 2024-001-Inadequate Accounting and Documentation-Allowable Costs/Principles and Reporting Condition: The outside fee accountant delivered a letter dated November 30, 2024 that outlined the significant issues that management needed to address before the fee accountant could sign off on their year- end checklist regarding the unaudited financial statements. The fee accountant never received the information that would allow them to sign this checklist. With the accompanying daily operational issues the new Executive Director encountered, he was unable to give sufficient attention to the issues noted by the fee accountant, as outlined in their November letter. The financial statements were misstated, including the following: (a)-The Housing Check Voucher operating bank statement reflects an overdraft of $195,295, which includes approximately $252,818 of outstanding checks. These checks were dated from February 1, 2022 through September 1, 2024. Only $45,768 of these checks were dated from July 20, 2024 forward. (b)-The accounting records reflect an account payable of $255,086 for the General Fund- Low Rent program, owed to the HCV Program. $ 88,324 of this amount consists of Ross Grant funds received by the Low Rent program that should have been utilized by the Housing Choice Voucher (HCV) Program. The accounting records reflect that the remaining balance is owed to the HCV Program for various expenses, principally $76,700 for payroll and $39,500 for software. This $255,086 is incorrectly reflected as accounts payable, instead of interfund due to the HCV Program. The HCV program incorrectly shows an accounts receivable of $42,859, which is coded as only part of the $88,324 (see above), owed to HCV by the Low Rent Program. Instead of payables and receivables, these amounts due to HCV Program by the Low Rent program should be reflected as interfund receivables and payables, and the amount should equal. (c)-At September 30, 2024, the Authority had fully expended recent Ross Grants of $39,045 and $57,394. On September 23, 2024 the bank statement reflected a deposit of $41,144 labeled “HUD ROSS.” Management has been unable to give us a copy of the original grant agreement or other details of this grant. (d)-The HCV Program paid $3,131,825 in electronic payments. The Low Rent Program, via the General Fund, paid $15,009 in electronic payments. It appears the type of written second approval that we have recommended for multiple years was not used. Only the Executive Director appears to have initiated and completed these purchases. We were unable to review the supporting detail such as invoices or statements, except for 9 of 296 transactions in the HCV Program that totaled $1,721 and 16 of 78 in the Low Rent program that totaled $5,310. We note that almost all Authority expenses were paid in this manner. This includes payroll, HAP payments, and utilities. We noted payments coded mainly to Contract Materials that were paid to Walmart, Amazon, Sam’s Club, and Pilot. Travel expenses appear to be unusually high for a small, financially trouble Authority. (e)-Government Accounting Standards Bulletin (GASB) 96, a relatively new pronouncement, addresses subscription-based technology arrangements. The Authority utilizes a subscription software that performs various functions related to tenant files, waiting lists, and various reports to HUD. Since the Authority’s current agreement is for multiple years, a significant accounting adjustment should have been recorded on the general ledger, but was not. (f)-As detailed in Note 11 of the financial statements, the Authority participates in a Simplified Pension Plan (SEP). We have requested in prior years from management a copy of the board resolution, or some other documentation, that details the percentage to be contributed. We have still not received that documentation. Prior management claimed this percentage to be 8%. (g)-The fee accountant in their November 2024 letter requested clarification of $126,982 of deferred CARES Act funds. We believe this deferred amount is in error on the financial statements. In our opinion, $60,964 should have been reported as Admin and Tenant Services salaries for the audit year September 30, 2020. The remaining CARES Act funding of $66,018 should been reported as Tenant Services salaries for the years ended September 30, 2020 and 2021. Corrective Action Planned: I am Louis Alfaro, Executive Director and Designated Person to answer these findings. We will comply with the auditor’s recommendation. As noted above, I did not become Executive Director until after this audit period. Person responsible for corrective action: Louie Alfaro, Executive Director Telephone: (915) 886-4650 Housing Authority of the Town of Anthony, Texas Fax: (915) 886-2296 1007 Franklin Anthony, TX 79821 Anticipated Completion Date: September 30, 2025

Name of Auditee: City of New Rochelle, New York Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: Year ended December 31, 2024 CAP Prepared by: Edward Ritter, Commissioner of Finance Phone: (914) 654-2000 (3) Audit Finding 2024-003 - the City did not timely submit the Federal Data Collection Forms to the appropriate authorities. (a) Implementation Plan of Actions - Management has contracted with a third party to assist with entering and submitting the required years of the Federal Data Collection Form for the City’s Section 8 Housing Choice Voucher Program for fiscal years ended December 31, 2021 and 2022. Management has contracted with their external auditors to perform the submissions of the Federal Data Collection Forms for fiscal years ended December 31, 2024 and 2023. These forms will be submitted in chronological order once they are processed by the U.S. Department of Housing and Urban Development. Additionally, management has contracted with another third party to provide assistance with the year-end closing procedures. Such assistance may enable management to ensure that the Federal Data Collection Form is submitted to the Federal Audit Clearinghouse by the required deadline. (b) Implementation Date - This will be implemented during the year ended December 31, 2025. (c) Persons Responsible for Implementation - The Commissioner of Finance, Commissioner of Development and the City Council.

CORRECTIVE ACTION PLAN October 23, 2025 Town of Blacksburg, Virginia respectfully submits the following corrective action plan for the year ended June 30, 2024. Name and address of independent public accounting firm: Brown, Edwards & Company, L.L.P. 3906 Electric Road Roanoke, VA 24018 Audit period: June 30, 2024 The findings from the June 30, 2024, Schedule of Findings and Questioned Costs (the “Schedule”) are discussed below. The findings are numbered consistently with the number assigned in the Schedule. FINDINGS – FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT 2024-002: CDBG – Community Development Block Grants/Entitlement Grants – ALN #14.218, Reporting Condition: Housing and Community Connections did not timely file Cash on Hand Quarterly Reports in two instances of testing. Criteria: Under the requirements in the Uniform Guidance, reports are to be filed within 30 days after the end of the reporting period. Cause: Housing and Community Connections typically file all reports timely, however, two quarterly reports during the same quarter were filed late. Effect: Failure to file timely reports could result in improper reporting of the use of Federal funds. Perspective Information: Two Cash on Hand Quarterly Reports of four tested were not filed within 30 days after the end of the reporting period. Recommendation: Management should implement a procedure to ensure that reports are filed within reporting periods. Views of Responsible Officials and Planned Corrective Action: To address this finding, Housing and Community Connections has taken the following steps: 1. Compliance Calendar & Reminders – Staff have implemented calendar reminders for all HUD reporting requirements. Reporting deadlines are also reviewed at bi-monthly staff meetings to ensure awareness of upcoming due dates. 2. Defined Roles and Responsibilities – The HOME/CDBG Program Coordinator now assembles applicable data and prepares a draft of each quarterly Cash on Hand Report. This draft is reviewed with the Housing and Community Connections Manager before submission. 3. Approval and Retention Process – A final review and approval is conducted by the Manager prior to submission. Copies of all submitted reports are retained in office files as part of our strengthened workflow. FINDINGS – FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT 2024-003: CDBG – Community Development Block Grants/Entitlement Grants – ALN #14.218, COVID-19 Coronavirus State and Local Fiscal Recovery Fund – ALN #21.027, Late Filing of Financial Report and Data Collection Form Condition: The Town did not submit the data collection form or financial report for the year ended June 30, 2024 timely. Criteria: For June 30, 2024, year-end audits, under the requirements in the Uniform Guidance and the Office of Management and Budget (OMB), all entities are required to submit the annual data collection form with the Federal Audit Clearinghouse the earlier of either 30 days after the issuance of the entity’s annual audit or nine months after the entity’s fiscal year end. Cause: Management did not complete and certify their portion of the form before the deadline. The form cannot be completed before the audit is issued. Effect: The Town’s form was submitted to the Federal Audit Clearinghouse late, delaying completion of all annual audit requirements for the Town. Recommendation: Management should take steps to ensure that the form and financial report are filed timely. View of Responsible Officials and Planned Corrective Action: To address this finding, the Town has strengthened internal processes to ensure timely submission of all future financial reporting and audit certification materials through the following measures: 1. Submission Tracking and Deadline Control – A centralized federal reporting tracker has been created to monitor all post-audit submission requirements. The Housing and Community Connections Manager will receive automated deadline reminders beginning 30 days before each reporting due date. 2. Defined Accountability Chain – The Town Manager’s Office and the Finance Department are responsible for completing and certifying the data collection form promptly upon issuance of the audit. The Housing and Community Connections Division will verify completion and coordinate any supplemental financial information required for submission. 3. Post-Audit Compliance Review – A post-audit checklist has been developed to confirm all required submissions – including the Federal Audit Clearinghouse filing – are completed and documented. Completion status will be reviewed in the first Finance/Housing coordination meeting following each audit. If the Federal Audit Clearinghouse has questions regarding this plan, please call Jeff Lazenby, Director of Finance at 540-443-1051. Jeff Lazenby Director of Finance

Reasonable Rent Review Planned Corrective Action: The Continuum of Care (CoC) program was transitioned to another organization during FY2024 as part of a broader realignment of programs and services. Heartland Alliance Health no longer administers this program, and all compliance responsibilities, including tenant files and rent documentation, were transferred to the receiving entity. At the request of the auditors, Heartland Alliance Health has initiated contact with the new organization to confirm that all required program and tenant records have been properly transferred, secured, and maintained in compliance with HUD regulations. Person Responsible for Corrective Action Plan: Steve Knox, Controller Anticipated Date of Completion: Resolved

Authority's Response and Planned Corrective Action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Public and Indian Housing Program to ensure that established internal control policies are being followed on a timely basis. Leonard Spicer, Executive Director, is responsible for implementing this corrective action by December 31, 2025.

Authority's Response and Planned Corrective Action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Housing Voucher Cluster to ensure that established internal control policies are being followed on a timely basis. Leonard Spicer, Executive Director, is responsible for implementing this corrective action by December 31, 2025.

Authority's Response and Planned Corrective Action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Housing Voucher Cluster to ensure that established internal control policies are being followed on a timely basis. Leonard Spicer, Executive Director, is responsible for implementing this corrective action by December 31, 2025.

Authority's Response and Planned Corrective Action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Housing Voucher Cluster to ensure that established internal control policies are being followed on a timely basis. Leonard Spicer, Executive Director, is responsible for implementing this corrective action by December 31, 2025.

Recommendation The Organization should establish a system of internal controls to ensure that all UDS related calculations are properly documented and maintained. Repeat Finding No Action Taken The health center will share one location to maintain all UDS files and ensure that the worksheet/and data that is prepared is locked so only the owner can make changes.

Recommendation We recommend that the Organization consistently enforce its internal controls over payroll to ensure that timesheets are reviewed and approved by the appropriate supervisor and ensure that they agree to the payroll register. Repeat Finding Yes Action Taken The staff accountant does the payroll. We save a backup timecard report each payroll that we are paying from the approved by the employee's supervisor. We also have an internal worksheet that we use to document any changes that are made. Once the accountant is done with her review the controller will do the second review before we finish processing the payroll enforcing internal controls that are in place and being followed.

Recommendation The Organization should strengthen internal controls in place to effectively ensure that patients receive the correct sliding fee discount. Repeat Finding Yes Action Taken We will hold quarterly training on the Slide Fee process and share any relevant findings to support staff learning and development. The Slide Fee Coordinator will run a daily report to audit the slide fees entered the previous day to ensure accuracy.

Finding 2024.006 - Reporting Recommendation The Organization should establish a system of internal controls to ensure that all UDS related calculations are properly documented and maintained. Action Taken In response to the audit finding, I will develop and implement a formal internal control system to ensure that all Uniform Data System (UDS) related calculations are accurately documented and consistently maintained.

Finding 2024.003 - Special Tests and Provisions - Sliding Fee Scale Documentation Recommendation The Center should establish a system of internal controls to ensure that all sliding fee discounts are properly calculated and supported based on family size and income. Action Taken This was also a finding in the 2023 Audit. In response to the audit finding, I worked directly with the Director of Clinical Operations and the Patient Service Representative Manager to conduct a comprehensive review of the health center's existing sliding fee scale policy to ensure alignment with federal guidelines and best practices, clarifying documentation requirements, including acceptable forms of income verification and the definition of family size. We developed and implemented a step-by-step standard operating procedure (SOP) for Patient Service Representatives (PSR) staff to consistently assess and apply sliding fee discounts. The SOP included clear instructions for verifying documentation, calculating discount eligibility, and recording determinations in the patient's record. The Clinical Operations Director's management team will conduct quarterly spot audits of a sample of sliding fee files to verify correct application and documentation. The managers will report the findings to leadership and provide corrective follow-up and provide training for PSR personnel on the updated policy and procedures needed. I reported all identified and assessed changes to the health center's board of directors or its audit committee for review and oversight. The board verified that appropriate corrective action was being taken regarding internal controls.

Management's Response: "We have reviewed our depository agreements with our financial institutions, and we have obtained executed depository agreements with all of our financial institutions. This action was completed on October 24, 2025. We will implement a periodic review of our depository agreements with financial institutions to ensure that executed agreements are in place and in effect."

The Corporation agrees with the finding and the auditor's recommendations have been adopted. As of the report date and subsequent to the statement of financial position date, the $83,761 was repaid back to the Corporation.

Management has addressed the issue by recertifying the tenants and does not expect late recertifications to occur again.

2024-004 – ALN 14.850 – Public Housing Operating Fund – Special Tests and Provisions – Depository Agreements Planned Corrective Action: The Executive Director acknowledges the finding and is following the auditor’s recommendation as presented in the Audit Report. Person Responsible for Correction of Finding: Sandra Perry, Executive Director Anticipated Completion Date: June 30, 2025

2024-003 – ALN 14.850 – Public Housing Operating Fund – Eligibility Planned Corrective Action: The Executive Director acknowledges the finding and is following the auditor’s recommendation as presented in the Audit Report. Person Responsible for Correction of Finding: Sandra Perry, Executive Director Anticipated Completion Date: June 30, 2025

Significant Deficiency: Missing one deposit to the replacement reserve. $11,422 Recommendation: The Project should establish and follow a consistent monthly review process to ensure all deposits to the replacement reserve are made on a timely basis. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management continues to review and establish processes related to review and approval to ensure monthly replacement reserve deposits are made.

Material Weakness: Internal Controls Over Compliance: The HUD approved budget for the 24-25 grant period, one replacement reserve withdrawal, and the bank reconciliations for August through December did not have documented review or approval. Recommendation: The Project should establish and follow a consistent review process for budgets, replacement reserve withdrawals, and bank reconciliations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management continues to review and establish monthly processes related to review and approval of budgets, replacement reserve withdrawals, and bank reconciliations.

Material Weakness: Unauthorized Loan Recommendation: Management should implement a monthly review process to ensure that management fees are billed in accordance with the terms of the management agreement. Additionally, payroll allocations should be reviewed monthly to confirm that only the appropriate share of expenses is charged to the Project. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management continues to review and establish month end and year end procedures to properly record management fees accordance with HUD approved rate. The payroll allocation issue arose due to a salary allocation being missed during the property management transition. Management continues to review and establish procedures related to payroll allocations to ensure correct expenses are allocated to the Project.

2024-001 - Tenant security deposit bank account. Contact person - Interim Executive Director , Lazaro J. Guerra. Phone 956-787-1822. Corrective action planned - The Project will maintain a tenant security deposit bank account in accordance with the regulatory agreement. Anticipated completion date - Within the next fiscal year.

Condition The financial statements were not submitted to HUD Real Estate Assesment Center (REAC) within the required periods for the year ended December 31, 2024. Views of Responsible Officials and Corrective Action Taken The Organization agrees with the finding and will file the report.

Condition The Data Collection Form was not submitted to the Federal Audit Clearinghouse within the nine-month period for the year ended December 31, 2024. Views of Responsible Officials and Corrective Action Taken The Organization agrees with the finding and will file the report.