Corrective Action Plans

Inspections Housing Voucher Cluster – Assistance Listing No. 14.871 and 14.879 Recommendation: We recommend that the Authority designate an individual to review the third-party inspection reports and track inspections and their timing. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Compliance Manager will review the third-party inspection reports and track inspections and their timing. Name(s) of the contact person(s) responsible for corrective action: Lawrence Strawder Planned completion date for corrective action plan: July 1, 2026

Rent Reasonableness Housing Voucher Cluster – Assistance Listing No. 14.871 and 14.879 Recommendation: We recommend that the Authority designate an individual to review tenant files to determine if a rent reasonableness has been performed and was completed in a timely manner. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: HDB has implemented a monthly quality control sample that includes the review of Rent Reasonableness determination. Name(s) of the contact person(s) responsible for corrective action: VenKisha Haynes Planned completion date for corrective action plan: This action has been completed.

Waiting Listing Housing Voucher Cluster – Assistance Listing No. 14.871 and 14.879 Recommendation: We recommend that the Authority designate an individual to maintain the waiting list and track all correspondence with potential tenants. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Housing Daytona Beach has a designated person to track waitlist activity and correspondence in Lead Housing Specialist, Tyvon Tobler. Name(s) of the contact person(s) responsible for corrective action: Vanessa L. Dunn Planned completion date for corrective action plan: Ms. Tobler has been assigned to manage the HCV Waitlist for the last three years. However, HDB has inserted an additional internal control measure as of FY 25-26, to include additional review by the HCV Manager.

Interfund Housing Voucher Cluster – Assistance Listing No. 14.871 and 14.879 Public Housing Operating Fund – Assistance Listing No. 14.850 Recommendation: We recommend management should create processes to track interfunds and transfers as well as designate an individual to review and approve these transactions. Additionally, the Authority should begin the process of reimbursing the respective programs. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: In April 2025, the HA hired the financial consulting firm of Kubas Keller and Associates. They have vast experience with HA’s all around the country and will work with staff and possibly a new CFO to ensure if interfunds and transfers are properly tracked and eliminated on the financials. This includes reviewing past transactions and correcting them in FY 2026. Name(s) of the contact person(s) responsible for corrective action: Tony Palmer, CPA Kubas Keller and Associates Planned completion date for corrective action plan: June 2026.

VMS Reporting Housing Voucher Cluster – Assistance Listing No. 14.871 and 14.879 Recommendation: We recommend that the Authority designate an individual to review VMS monthly including the prior periods for adjustments. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to findings: VMS has been designated for review to the Deputy Director of Finance with collaboration and partnering with the HCV Manager. A monthly team meeting has been implemented to review and make any necessary adjustments on a monthly basis. Name(s) of the contact person(s) responsible for corrective action: Vanessa L. Dunn Planned completion date for corrective action plan: Action has been completed, first VMS Team meeting was held on February 19, 2026.

HCVP Eligibility Housing Voucher Cluster – Assistance Listing No. 14.871 and 14.879 Recommendation: We recommend management should designate one person to review a sample of the files that have been recertified each month, to determine if the tenant files were prepared in accordance with internal policies and until the compliance deficiencies have been corrected. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding. Housing Daytona Beach hired a full-time Compliance Manager April 2025. Name(s) of the contact person(s) responsible for corrective action: Vanessa L. Dunn Planned completion date for corrective action plan: Action has been completed.

FINDING# 2024-003 RESIDUAL RECEIPTS DEPOSIT Recommendation: The management agent should compute an estimate of surplus cash (residual receipts) for the fiscal year upon completion of that period. In the event that surplus cash exists at the completion of the fiscal period, the Management Agent must further ensure that all required deposits are made to the Residual Receipts account within the required time frame and that the balance in that account meets the minimum required balance in accordance with the regulatory agreement between the Entity and HUD. Views of Responsible Officials and Planned Corrective Action: The management agent agrees with the finding and the auditor’s recommendations have been adopted. Surplus cash will be calculated upon the completion of an annual fiscal period. If it is concluded that surplus cash exists at the end of the annual fiscal period, and further determined that the surplus cash was received within that fiscal period, that amount of surplus cash will be deposited into the Residual Receipts Account within ninety days of the close of that fiscal period.

FINDING# 2024-002 LATE CENSUS BUREAU FILING Recommendation: We recommend that the property comply with all continuing compliance requirements and ensure that the data collection form is submitted by the required deadline in the future. Views of Responsible Officials and Planned Corrective Action: Management will comply with this recommendation in the future.

FINDING# 2024-001 LATE AUDIT SUBMISSION Recommendation: We recommend that the property comply with HUD’s audit requirements and ensure that the audit is submitted by the required deadline in the future. Views of Responsible Officials and Planned Corrective Action: Management is aware and will comply with this recommendation in the future.

Management plans to restore the replacement reserve to the required balance when funds are available. They have also submitted for rent increases to assist with cash flow. The expected completion date is July 31, 2026.

Comments on the Finding and Each Recommendation: The Corporation did not obtain HUD approval for a replacement reserve withdrawal totaling $16,954 during the year ended December 31, 2024. Management should transfer $16,954 from the operating account to the replacement reserve account. Action(s) taken or planned on the finding: Management concurs with the finding and transferred $16,954 on March 4, 2025 from the operating account to the replacement reserve account.

Comments on the Finding and Each Recommendation: The Corporation did not furnish HUD with a complete annual financial report within ninety (90) days following the end of the fiscal year ending December 31, 2024. The annual financial statements should be issued in a timely manner pursuant to the time frame set forth by HUD. Action(s) taken or planned on the finding: Management concurs with the finding and recommendation. The audited financial statements have been submitted to HUD.

Finding 2024-002: The Corporation submitted the owner certified financial report withing ninety (90) days following the end of the fiscal year ending December 31, 2024, however did not furnish HUD with a complete audited annual financial report within nine (9) months following the end of the fiscal year ending December 31, 2024. Comments on the Finding and Each Recommendation: The annual financial statements should be issued in a timely manner pursuant to the time frame set forth by HUD. Action(s) Taken or Planned on the Finding: Management concurs with the finding and recommendation. The audited financial statements have been submitted to HUD.

Finding 2024-001: For the year ended December 31, 2023, the Corporation did not submit the Data Collection Form to the Federal Audit Clearinghouse in the time period required by Uniform Guidance. Comments on the Finding and Each Recommendation: The Corporation should submit the Data Collection Form to the Federal Audit Clearinghouse within the required time period. Management agrees with the finding and agrees with the auditor's recommendation. Action(s) Taken or Planned on the Finding: The Data Collection Form was submitted to the Federal Audit Clearinghouse on May 30, 2024, no further action is required.

Allowable Costs - Quarterly Review of State Time Study Listings Federal Agency: US Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Number: 93.778 Federal Award Identification Number and Year: 2205MN5ADM, 2024 Award Period: January 1, 2024 through December 31, 2024 Type of Finding: Material Weakness in Internal Control over Compliance Recommendation: We recommend the County puts in place the proper procedures to ensure it has proper controls in place to properly document the review of the state time study listings each quarter. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will ensure there are proper financial procedures and controls in place to properly document the review of the state time study listings each quarter. Name(s) of the contact person(s) responsible for corrective action: Angie Larson, Auditor-Treasurer / Chief Financial Officer Planned completion date for corrective action plan: December 31, 2026

No recommendation was made by the auditor. No corrective action is consider necessary

Finding 2024-003 - Segregation of Duties Fiscal Year Finding Initially Occurred: FY 2024 (Initial Finding) Name of Federal Agency: U. S. Department of Housing and Urban Development (HUD) Award Year: 2021 and 2024 Criteria or specific requirement: Statements on Auditing Standards, Communicating Internal Control Related Matters Identified in an Audit, require the auditor to report on whether the Society has appropriate segregation of duties relating to all aspects of its bookkeeping and accounting procedures. Good internal control requires a complete separation of duties with respect to handling and recording transactions No one person should have access to both physical assets and the related accounting records or to all phases of a transaction. Condition: There is an absence of an absolute segregation of duties in the accounting process due primarily to an accounting department that lacks the size and resources to function in an ideal manner that could assist in reducing the likelihood of a material misstatement. Cause of condition: Limited available staff, coupled with the size of the Society, and prohibitive costs currently prevent an absolute segregation of duties. The Society believes the cost far outweighs the perceived benefits. Potential effect of condition: The lack of an absolute segregation of duties weakens the Society's internal control structure's ability to absolutely prevent and/or detect possible misstatements or compliance issues through second-party independent verification for safeguarding of assets, potential material misstatement, and safeguarding of assets within the Society's financial statements. Recommendation: We understand that the added costs of providing an absolute segregation of duties will, in most cases, outweigh the projected benefits of the added controls, and therefore, may be considered unjustified. However, we are obligated by recently adopted auditing standards to bring this condition to the attention of management and the Board. Those charged with governance are obligated to consider the validity of these comments in light of the circumstances surrounding this condition and respond as they consider necessary. Their response may very well entail acceptance and continuance of this condition as the best perceived alternative under the circumstances. Response of responsible SC UpLift Official: Absolute separation of duties is rarely, if ever, seen within small to medium-sized organizations simply because of the lack of a cost-benefit justification for the added segregation of duties. In the absence of absolute segregation of duties, we implore mitigating controls that reduce the likelihood of material misstatement. We believe that the added costs of providing an absolute segregation of duties will far outweigh the projected benefits of the added controls, and therefore, consider it as unjustifiable.

Finding 2024-001 - Internal Controls Over Accounting and Financial Reporting Fiscal Year Finding Initially Occurred: FY 2024 (Initial Finding) Name of Federal Agency: U. S. Department of Housing and Urban Development (HUD) Award Year: 2021, 2023, and 2024 Criteria or specific requirement: Under the Uniform Guidance (2 CFR Part 200), non-Federal entities that receive Federal awards must maintain an accounting and financial management system that provides adequate internal control, accountability, and reporting. Generally Accepted Accounting Principles (GAAP) require revenues and expenses to be recognized in the period in which they are earned or incurred. Assets, liabilities, and net assets should be accurately recorded and reported as of the applicable reporting date. Organizations should maintain effective controls to ensure proper period-end cutoff and accurate financial reporting. Condition: During our audit, we identified material accounting errors in accounts receivable, equity investments, property and equipment, accumulated depreciation, construction in progress, accounts payable, and the classification of net assets with donor restrictions, where account balances were not recorded, were recorded improperly, or improperly classified. With respect to revenues and expenses, we identified transactions that were recorded in accounting periods other than those in which the underlying economic events occurred. Specifically, some revenues and expenses that should have been reported in the 2023 accounting year were recorded in the 2024 accounting year, Another condition related to this finding is that accounting personnel do not close the books at year-end each year. This condition required SC UpLift's management to engage the services of a third-party Certified Public Accountant (CPA) to correct the underlying accounting records before year-end financial statements could be prepared. The accounting records required approximately 30 adjusting, reclassifying, or correcting journal entries, to get the accounting records ready for financial reporting. Cause of condition: The primary cause of this condition appears to be a lack of skill, knowledge, experience, and training of accounting personnel with respect to GAAP, and governmental bookkeeping, accounting, and financial reporting requirements. A secondary cause of this condition may be a lack of supervisory oversight and review of accounting transactions by a knowledgeable individual. Potential effect of condition: The potential effect of this condition is the possible material misstatement of interim and/or year-end financial reporting. Management may make decisions using inaccurate financial information, which could negatively affect SC Uplift's ability to secure additional funding for its programs. Section II - Financial Statement Findings (continued) Finding 2024-001 - Internal Controls Over Accounting and Financial Reporting (continued) Fiscal Year Finding Initially Occurred: FY 2024 (Initial Finding) Recommendation: We recommend Management strengthen daily accounting, and period-end closing and review procedures to ensure all transactions are recorded in the appropriate accounting period. Recommended actions include: 1. Implementing formal cutoff procedures for revenue, expense, asset, and liability transactions; 2. Strengthening supervisory review and approval of period-end journal entries and reconciliations; 3. Performing timely reconciliations of significant balance sheet accounts; 4. Providing training to accounting personnel regarding period recognition requirements and accounting cutoff principles; and 5. Establishing documented review controls to verify the completeness and accuracy of period-end financial reporting. Response of Responsible SC UpLift Official: Management of SC UpLift Community Outreach, Inc. acknowledges and understands the audit finding regarding financial reporting and year-end accounting procedures. We appreciate the auditor's recommendations and are committed to strengthening our accounting and financial reporting processes to ensure continued compliance with Generally Accepted Accounting Principles (GAAP), Uniform Guidance (2 CFR Part 200), and nonprofit financial reporting standards. As a small nonprofit organization with limited administrative resources, SC UpLift has consistently sought to maintain sound financial management practices by engaging qualified Certified Public Accountants (CPAs) to assist with our accounting and financial reporting. However, due to the financial constraints common among small nonprofit organizations, we have not always been able to retain those services on a continuous basis because of the associated costs. This was SC UpLift's first Single Audit, and we recognize that the increased reporting requirements associated with federal funding require additional expertise, stronger internal controls, and more formalized year-end closing procedures. We have already engaged a third-party CPA to assist with the preparation of the 2024 audited financial statements and will continue working closely with both our bookkeeper and CPA throughout the upcoming fiscal year to improve our financial reporting processes. Specifically, management will: • Develop and implement formal month-end and year-end closing procedures. • Perform timely reconciliations of all significant balance sheet accounts. • Strengthen supervisory review of journal entries, reconciliations, and financial reports. • Ensure revenues, expenses, assets, and liabilities are recorded in the proper accounting period. • Continue utilizing the expertise of our third-party CPA to review financial records, provide guidance on GAAP compliance, and assist with staff training and implementation of best practices. Management believes these corrective actions will significantly strengthen our internal controls over financial reporting and reduce the likelihood of similar findings in future audits. We are committed to continuous improvement and maintaining financial records that accurately reflect the organization's financial position while meeting all applicable federal and nonprofit reporting requirements. Target Completion Date: December 31, 2026

Re: Corrective Action Plan - 2024 Audit To: United States Department of Housing and Urban Development From: Housing Authority of City of Pittsburgh, (HACP) Action: Respectfully submits the following Corrective Action Plan for the year-end December 31,2024. Name and address of independent public accounting firm: Maher Duessel, CPA’s 503 Martindale Street, Suite 600 Pittsburgh, PA 15212 Audit period: January 1, 2024 - December 31, 2024 The findings from the December 31, 2024, Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the number assigned in the schedule. Finding 2024-001 U.S. Department of Housing and Urban Development Moving to Work Demonstration Program - ALN 14.881 Eligibility and Reporting Repeat Finding from 2021(2021-001), 2022(2022-001), and 2023 (2023-001) Maher Duessel Finding Condition: During our review of 40 tenant files prepared by the Housing Authority of the City of Pittsburgh (Authority) as part of the biennial reexamination process, we noted a lack of functioning internal controls which led to the below exceptions in our testing. We noted four instances where a tenant recertification using the HUD-50058, Family Report (Form) (which provides eligibility and reporting information) was not completed, on a timely basis. We also noted one instance where other documentation to support the reporting and eligibility assessment as part of completion of the HUD-50058 was not provided. This includes items such as support for income calculation and medical deductions. These exceptions indicate a lack of functioning internal controls and oversight to ensure compliance with HUD requirements related to timely and accurate tenant recertifications. HACP Management Response/Action Taken: Action Taken: The HACP will continue to monitor and train staff regarding processes and procedures, to include and not limited to the Housing and Urban Development’s (HUD) hierarchy of income verification. As noted in previous responses, the HACP continues to experience challenges in hiring and retaining staff as a result of the complexity of the Housing Choice Voucher (HCV) Program. In fiscal year (FY) 2024, the HCV Department had a significant turnover in both line and managerial staff. The HACP promoted an aggressive hiring plan to attract new talent to fill vacant positions due to the great resignation that the HACP, along with other national Agencies, continue to experience. In addition, the HACP has adopted the policy of hiring more staff than needed in the event of turnover. The HACP will continue to utilize the Internal Compliance (IC) Department to review recertifications and compile audit report cards based on the accuracy of recertifications reviewed. The audit report cards are used as an additional management tool to determine whether additional training is needed for staff and the department in general. The HACP continues to: • Send notices regarding re-certifications 120 days in advance of the due date, o Send 10-day notices for missing AR documents o Send 30-day notices when there is no or insufficient response to the 10 day notice sent • Require Managers to review reports to assure timely submission of re-certifications, • Utilize the IC Department to review and sample files from the Occupancy and the HCV portfolio, • Offer periodic staff training on re-certification, • Offer participants the use of technology to complete paperwork In addition to the above noted internal controls, the HACP will institute Bob.ai in FY 2026 as an additional tool to notify both the participant and the HACP staff when the recertifications are due and provide notification of missing documents. The One Stop Shop (OSS) is staffed with three (3) full-time staff members to receive information from participants and landlords to provide timely customer service. In July of 2024, the OSS was equipped with computers for the public to access HACP staff virtually. The use of the computers allows staff to interact with participants regarding minor issues without having the staff physically come to the OSS, thus saving time and money for both the external customer and the Authority. The opening of the One Stop Shop has been successful in receiving the public and responding to concerns.

Subject: Compliance with HUD Replacement Reserve Monthly Deposit Requirement Issue Identified: HUD regulations require that deposits into the Replacement Reserve account be made on a monthly basis. Our agency has historically made annual lump-sum deposits, which is not in compliance with HUD guidelines. Corrective Actions 1. Change in Deposit Frequency Action: Transition from an annual deposit schedule to a monthly deposit schedule in accordance with HUD requirements. Responsible Party: CFO and Accounting Manager Timeline: Effective May 1, 2025, monthly deposits will begin. Verification: Monthly entries and bank confirmations will be reviewed by Accounting. 2. Implementation of Automated Transfers Action: Establish and schedule automated monthly bank transfers to the Replacement Reserve account. Responsible Party: Accounting Manager in collaboration with Banking Institution Timeline: Setup completed by 04/15/2025. First automated transfer on 05/01/2025. Verification: Confirmation of automation setup from the bank and successful execution of first transfer. 3. Monthly Notifications to Fiscal Personnel Action: Create an automated monthly email notification system to alert key fiscal personnel of each deposit, including the amount and confirmation of receipt. Responsible Party: Budget & Reimbursement Manager Timeline: Notification system live by 05/01/2025. Verification: Email log confirming monthly communications sent to fiscal team. Ongoing Monitoring and Compliance The Accounting Manager will review monthly bank statements to verify timely and accurate deposits. The Controller will incorporate verification into monthly closing procedures.

Contact Person – Matt Bakke, Executive Director Corrective Action Plan – The Project will review its policies and procedures over selection from waiting list. Completion Date – 12/31/26

Contact Person – Matt Bakke, Executive Director Corrective Action Plan – The Project will review its policies and procedures over monthly reconciliations. Completion Date – 12/31/26

Finding #2024-002 Section 202 Supportive Housing for the Elderly – (Capital Advance); ALN 14.157: Recommendation: We recommend that management implement procedures to ensure that required funds are deposited into the residual receipts reserve account in the future within the 60-day requirement. Action taken: Smokey Hollow Apartments agrees with the auditor’s recommendations and will implement procedures to ensure timely and accurate deposits in the future. For questions regarding this corrective action plan, please contact John Lutz, Vice President of Financial Strategy, at (315) 424-1821.

Contact Person – Matt Bakke, Executive Director Corrective Action Plan – The Project will implement formal procedures requiring documentation evidencing the completion of periodic reviews. Completion Date – 12/31/26

Contact Person – Matt Bakke, Executive Director Corrective Action Plan – The Project will review its policies and procedures over timely reporting of report submissions. Completion Date – 12/31/26