Corrective Action Plans

Finding 1182294 (2024-003)

Material Weakness 2024

The Order of Fishermen Ministry Head Start Program, Inc.

MI

Subrecipient Monitoring Material Weakness Reporting § 200.501 § 200.512 § 200.514

TOFMHS concurs with the finding. The agency retained new auditors for the June 30,2024 fiscal year, subsequent to the due date for submission of the data collection reports. Corrective Action to be Taken: The Agency will take all reasonable measures to work with the new auditors to complete the audi...

TOFMHS concurs with the finding. The agency retained new auditors for the June 30,2024 fiscal year, subsequent to the due date for submission of the data collection reports. Corrective Action to be Taken: The Agency will take all reasonable measures to work with the new auditors to complete the audit process and submit the data collection report within the required time period. Responsible Person: Fiscal Officer/Program Director Completion Date: January 1, 2025

View Audit 393724

Finding 1181995 (2024-004)

Material Weakness 2024

Village of La Valle

WI

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

2024-004 Federal Procedure Manual Condition: Internal controls over federal grants should be in place to provide reasonable assurance that misstatement in the schedule of expenditures of federal awards would be prevented or detected. Criteria: Non-federal entities who receive federal or state grants...

2024-004 Federal Procedure Manual Condition: Internal controls over federal grants should be in place to provide reasonable assurance that misstatement in the schedule of expenditures of federal awards would be prevented or detected. Criteria: Non-federal entities who receive federal or state grants or have grant programs should have documented policies and procedures in place over grants and grant expenditures. Cause: The Village does not have documented policies and procedures in place over grants and grant expenditures. Effect: Without documented policies and procedures, the internal control over federal grants is low, and the risk of misstatement in the schedule of expenditures of federal awards is high. Auditor’s Recommendation: We recommend that the Village works on written policies and procedures over grants and grant expenditures. Management Response: The Village will work with their auditor to develop and adopt written grant procedures that are in accordance with the Uniform Guidance.

View Audit 393368

Finding 1181955 (2024-003)

Material Weakness 2024

Western Prairie Human Services

MN

Reporting Significant Deficiency Internal Control / Segregation of Duties § 200.303

Finding Number: 2024-003 Finding Title: Reporting Program: 93.778 Medicaid Cluster Name of Contact Person Responsible for Corrective Action: Tracy Bowman Corrective Action Planned: The account activity will be reviewed and reconciled monthly to check for chart of accounts errors. When quarterly repo...

Finding Number: 2024-003 Finding Title: Reporting Program: 93.778 Medicaid Cluster Name of Contact Person Responsible for Corrective Action: Tracy Bowman Corrective Action Planned: The account activity will be reviewed and reconciled monthly to check for chart of accounts errors. When quarterly reports are completed two fiscal staff will have reviewed the chart of accounts codes. Anticipated Completion Date: 1/31/2025

View Audit 393258

Finding 1181906 (2024-002)

Material Weakness 2024

Butts County Board of Commissioners

GA

Internal Control / Segregation of Duties

Management will concur with the finding and will establish and implement formal procedures to ensure sufficient and appropriate documentation is obtained and maintained prior to removing a student from the graduation cohort.

View Audit 393207

Finding 1181833 (2024-002)

Material Weakness 2024

Pierre Indian Learning Center

SD

Reporting Internal Control / Segregation of Duties § 200.512

Corrective Action Plan for Finding 2024-002 Finding Title: Noncompliance with Single Audit Report Submission Requirements Federal Program(s): All programs included in the FY 2024 Single Audit Contact Person Responsible for Corrective Action: Dr. Veronica Morley, Superintendent Anticipated Completion...

Corrective Action Plan for Finding 2024-002 Finding Title: Noncompliance with Single Audit Report Submission Requirements Federal Program(s): All programs included in the FY 2024 Single Audit Contact Person Responsible for Corrective Action: Dr. Veronica Morley, Superintendent Anticipated Completion Date: March 31, 2025 Corrective Action Plan: Management concurs with the finding. The delay in submitting the Single Audit reporting package to the Federal Audit Clearinghouse was due delayed completion of audited financial statements. The school is in the process of getting current with audited financials statements.

View Audit 393100

Finding 1181785 (2024-001)

Material Weakness 2024

East Central Iowa Workforce Development Board

IA

Equipment & Real Property Management Internal Control / Segregation of Duties

Response and Corrective Action Planned – The ECIWDB acknowledges this deficiency and commits to taking the following corrective action: Documented establishment of a procedure that will allow for the Executive Director to approve payments in real time, with subsequent affirmation by the Finance Comm...

Response and Corrective Action Planned – The ECIWDB acknowledges this deficiency and commits to taking the following corrective action: Documented establishment of a procedure that will allow for the Executive Director to approve payments in real time, with subsequent affirmation by the Finance Committee at their monthly meetings. This procedural change shall be implemented on or about November 1, 2025.

View Audit 393072

Finding 1181651 (2024-001)

Material Weakness 2024

Partnership Homes, Inc.

NC

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.512

Partnership Homes, Inc. Greensboro, North Carolina CORRECTIVE ACTION PLAN February 11, 2026 Federal Audit Clearinghouse 1201 East 10th Street Jeffersonville, Indiana 47132 Partnership Homes, Inc. respectfully submits the following Corrective Action Plan for the year ended December 31, 2024. Bernard ...

Partnership Homes, Inc. Greensboro, North Carolina CORRECTIVE ACTION PLAN February 11, 2026 Federal Audit Clearinghouse 1201 East 10th Street Jeffersonville, Indiana 47132 Partnership Homes, Inc. respectfully submits the following Corrective Action Plan for the year ended December 31, 2024. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Post Office Box 19608 Greensboro, North Carolina 27419-9608 Audit period: Year ended December 31, 2024 The finding from the December 31, 2024 Schedule of Findings and Questioned Costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. Findings - Federal Award Programs Audits Finding No. 2024-001: HOME Investment Partnerships Program , CFDA #14.239 Recommendation: We recommend management ensure that the data collection forms are submitted electronically to the FAC within the required due dates each fiscal year going forward. Management's Response: We agree with Finding 2024-001 and the recommendation described in the accompanying schedule of findings and questioned costs. Management will provide additional oversight to ensure the data collection forms are submitted electronically to the FAC each fiscal year going forward within required due dates. The data collection form for the year ending December 31, 2023 was submitted to the FAC on August 27, 2025. If you have questions regarding this plan, please call Mike Cooke at (336) 707-5289. Sincerely yours, Mike Cooke Executive Director Partnership Homes, Inc.

View Audit 392927

Finding 1181619 (2024-001)

Material Weakness 2024

Community Services Unlimited, Inc.

CA

HUD Housing Programs Internal Control / Segregation of Duties

Corrective Action: We agree with the finding and will implement recommended procedures immediately. We will continue preparing a roll forward schedule of net assets with donor restriction, and review/approve the schedule with the appropriate authorized individuals prior to presenting to the auditors...

Corrective Action: We agree with the finding and will implement recommended procedures immediately. We will continue preparing a roll forward schedule of net assets with donor restriction, and review/approve the schedule with the appropriate authorized individuals prior to presenting to the auditors at the commencement of the annual audit. Name of Contact Person: Heather Fenney, Co-Executive Director Proposed Completion Date: December 31, 2025.

View Audit 392889

Finding 1181480 (2024-009)

Material Weakness 2024

Community Action Committee of the Lehigh Valley, Inc. and Subsidiaries

PA

Subrecipient Monitoring Material Weakness Reporting § 200.327 § 200.328 § 200.334

U.S. Department of Treasury • Material Weakness in Internal Control over Compliance Coronavirus State and Local Fiscal Recovery Funds – Assistance Listing No. 21.027 Condition: During audit testing of financial reporting for the Coronavirus State and Local Fiscal Recovery Funds program, the Organiza...

U.S. Department of Treasury • Material Weakness in Internal Control over Compliance Coronavirus State and Local Fiscal Recovery Funds – Assistance Listing No. 21.027 Condition: During audit testing of financial reporting for the Coronavirus State and Local Fiscal Recovery Funds program, the Organization was unable to locate three of ten financial reports requested for review. As a result, auditors were unable to verify the accuracy, completeness, or timeliness of the reported financial information for those reporting periods. Recommendation: The Organization should strengthen internal controls over financial reporting and record retention by establishing clear procedures to ensure that all required reports are accurately prepared, timely submitted, and retained in accordance with federal requirements. Management should designate responsible personnel and implement monitoring procedures to verify compliance with reporting and documentation standards. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The Organization will require that all supporting documentation related to financial reporting—including reports, source data, approvals, and correspondence—be retained electronically within Sage Intacct using standardized attachment and naming conventions. Management will implement periodic monitoring procedures, including supervisory review and internal spot checks, to verify that reports are timely submitted and that documentation is properly retained in Sage Intacct in accordance with applicable federal record-retention requirements. Name(s) of the contact person(s) responsible for corrective action: Dawn Godshall, Executive Director Planned completion date for corrective action plan: Planned completion date is June 30, 2025.

View Audit 392710

Finding 1181473 (2024-008)

Material Weakness 2024

Community Action Committee of the Lehigh Valley, Inc. and Subsidiaries

PA

Reporting Significant Deficiency Internal Control / Segregation of Duties

U.S. Department of Health and Human Services U.S. Department of Treasury • Significant Deficiency in Internal Control over Compliance Low-Income Home Energy Assistance - Assistance Listing No. 93.568 Coronavirus State and Local Fiscal Recovery Funds – Assistance Listing No. 21.027 Condition: During ...

U.S. Department of Health and Human Services U.S. Department of Treasury • Significant Deficiency in Internal Control over Compliance Low-Income Home Energy Assistance - Assistance Listing No. 93.568 Coronavirus State and Local Fiscal Recovery Funds – Assistance Listing No. 21.027 Condition: During our testing of performance and special reporting, we noted that the Organization did not maintain documentation evidencing review or approval of submitted reports. The reports tested did not include evidence demonstrating that an authorized individual reviewed and approved the performance and special reports prior to submission. Recommendation: The Organization should implement formal internal controls over performance and special reporting by establishing documented procedures that require review and approval of all reports prior to submission. Management should define clear roles and responsibilities for report preparation and independent review, ensure that reviews are performed by an authorized individual, and maintain documentation evidencing review and approval, such as signatures, dates, or electronic approvals, to support compliance with performance reporting requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The Organization will implement formal internal controls over performance and special reporting by developing and documenting standardized procedures for the preparation, review, and approval of all required federal performance and special reports. These procedures will clearly define roles and responsibilities for report preparation and independent review, including identification of authorized individuals responsible for final approval. Evidence of review and approval—including signatures, dates, or electronic approval records—will be retained in the grant file to support compliance with reporting requirements. Name(s) of the contact person(s) responsible for corrective action: Dawn Godshall, Executive Director Planned completion date for corrective action plan: Planned completion date is June 30, 2026.

View Audit 392710

Finding 1180866 (2024-006)

Material Weakness 2024

City of South Gate

CA

Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.430

Management acknowledges the importance of ensuring that payroll costs charged to the program are consistent between the payroll system and the employee’s timesheet. The City continues to monitor its internal control process to ensure thorough review procedures are being followed. Timesheets are revi...

Management acknowledges the importance of ensuring that payroll costs charged to the program are consistent between the payroll system and the employee’s timesheet. The City continues to monitor its internal control process to ensure thorough review procedures are being followed. Timesheets are reviewed, bi-weekly, by payroll and adjusted to reflect actual hours as they relate to a specific activity. The City was able to hire a permanent accountant hiring who will provide additional oversight of these processes ensuring that hours worked are both reported correctly on the timesheets and are following the funding allocations that are approved by the grant.

View Audit 392505

Finding 1180823 (2024-002)

Material Weakness 2024

Porchlight, Inc.

WI

Reporting Significant Deficiency Matching / Level of Effort / Earmarking

Management agrees with the finding and has taken corrective action to ensure the timely completion and submission of the audit reporting package. With the implementation of Sage Intacct and the strengthening of internal accounting processes, Porchlight is now able to begin audit preparation earlier ...

Management agrees with the finding and has taken corrective action to ensure the timely completion and submission of the audit reporting package. With the implementation of Sage Intacct and the strengthening of internal accounting processes, Porchlight is now able to begin audit preparation earlier in the year. Regular monthly reconciliations and improved staff training have significantly reduced the number of adjustments required at year‐end. Financial statements will be prepared internally prior to the audit process, allowing management to review financial information earlier and provide complete information to the auditors in a timely manner. While certain reporting configurations within Sage Intacct continue to be refined, Porchlight is working with outside consultants experienced with the system to ensure reporting functionality operates effectively. Porchlight is also developing a formal year‐end close checklist and reporting calendar to ensure that all financial reporting tasks are completed on schedule and that audit preparation begins sufficiently in advance of reporting deadlines. The Finance Director, with oversight from the Executive Director, is responsible for monitoring audit timelines and, along with our auditors, ensure all deadlines for submission to the Federal Audit Clearinghouse are met. Staffing improvements and the engagement of external consultants have strengthened the organization’s capacity to complete the audit process in a timely manner. Management will continue to monitor internal timelines and reporting procedures to ensure future audit submissions are completed within required deadlines. Person(s) Responsible: Halle Pollay Timing for Implementation: In process

View Audit 392484

Finding 1180743 (2024-003)

Material Weakness 2024

Trinity Public Utilities District

CA

Special Tests & Provisions Reporting Internal Control / Segregation of Duties

Strengthen GL coding controls for disaster-related activity; • Implement a secondary review over expenditure coding; • Periodically reconcile disaster expenditures across all GL accounts to ensure completeness and proper classification in the FE MA-designated tracking account.

View Audit 392418

Finding 1180742 (2024-002)

Material Weakness 2024

Trinity Public Utilities District

CA

Internal Control / Segregation of Duties

Implement and document a timekeeping record-retention control that: * Reconciles payroll charges to system time entries for each day prior to reimbursement; * Flags missing daily time records for corrective action before costs are submitted; and * Requires a secondary review to verify documentation ...

Implement and document a timekeeping record-retention control that: * Reconciles payroll charges to system time entries for each day prior to reimbursement; * Flags missing daily time records for corrective action before costs are submitted; and * Requires a secondary review to verify documentation supports the period of performance for each charge.

View Audit 392418

Finding 1180664 (2024-001)

Material Weakness 2024

Mount Sinai Foundation, Incorporated 053-36322

NC

HUD Housing Programs Internal Control / Segregation of Duties § 200.302 § 200.303

Mount Sinai Foundation, Incorporated 703 Blue Street Fayetteville, North Carolina 28301 CORRECTIVE ACTION PLAN February 10, 2026 U.S. Department of Housing and Urban Development Five Points Plaza Building 40 Marietta Street Atlanta, Georgia 30303 Mount Sinai Foundation, Incorporated respectfully sub...

Mount Sinai Foundation, Incorporated 703 Blue Street Fayetteville, North Carolina 28301 CORRECTIVE ACTION PLAN February 10, 2026 U.S. Department of Housing and Urban Development Five Points Plaza Building 40 Marietta Street Atlanta, Georgia 30303 Mount Sinai Foundation, Incorporated respectfully submits the following Corrective Action Plan for the year ended December 31, 2024. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Post Office Box 19608 Greensboro, North Carolina 27419-9608 The findings for the year ended December 31, 2024 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 and Federal Award Program Audits Finding 2024-001 - U.S. Department of Housing and Urban Development, Mortgage Insurance Rental and Cooperative Housing for Moderate Income Families and Elderly, Market Interest Rate (Sections 221d(3) and (4) Multifamily - Market Rate Housing), CFDA #14.135 Recommendation: That management review/enhance its accounting and internal control procedures to ensure that all key accounts are reconciled and reviewed with supporting evidence of such review. Action Taken: We agree with Finding 2024-001 and the recommendation described in the accompanying schedule of findings and questioned costs. The Corporation has executed a new management agreement with Remnant Management Inc. effective October 1, 2024. Remnant Management Inc. will ensure that all transactions are properly recorded and that key accounts are reconciled and reviewed on a periodic basis beginning October 1, 2024 and going forward. Sincerely yours, Shannon Pow President Remnant Management, Inc. Managing Agent effective October 1, 2024

View Audit 392336

Finding 1179811 (2024-001)

Material Weakness 2024

Special Health Resources for Texas, Inc.

TX

Significant Deficiency Internal Control / Segregation of Duties Special Tests & Provisions

To ensure consistent completion of the Sliding Fee Discount Form for all patients, new procedures have been implemented to improve the collection and documentation of required information. Patient registration forms have been revised to reflect these updates. Clerical staff will now conduct schedule...

To ensure consistent completion of the Sliding Fee Discount Form for all patients, new procedures have been implemented to improve the collection and documentation of required information. Patient registration forms have been revised to reflect these updates. Clerical staff will now conduct schedule preparation and identify patients who are non-compliant with the Sliding Fee Discount Form requirements. Post visit audits will be conducted to confrim that all necessary data is being accurately captured. The Revenue Cycle Manager will continue to provide on-site training across all locations and will work in close collaboration with clerical support staff, Clinic Managers, the Director of Operations, and the Director of Quality to ensure successful implementation and ongoing compliance.

View Audit 392189

Finding 1179640 (2024-003)

Material Weakness 2024

City of Rochester, New Hampshire

NH

Procurement, Suspension & Debarment Significant Deficiency Matching / Level of Effort / Earmarking § 200.327

Audit Finding Reference: SD-2024-003 Improve Internal Controls & Compliance with Procurement Planned Corrective Action: All contracts involving any federal grants will include the appropriate CRF 200 & 200.327 language. The language will be a required element of all federal contract, and will be cle...

Audit Finding Reference: SD-2024-003 Improve Internal Controls & Compliance with Procurement Planned Corrective Action: All contracts involving any federal grants will include the appropriate CRF 200 & 200.327 language. The language will be a required element of all federal contract, and will be clearly identified. No contracts will be approved by the City Manager without this language. Planned Implementation Date of Correction Action: Immediately as of date of deficiency notice 3-2-26. Person Responsbile for Corrective Action: Director of Finance

View Audit 392049

Finding 1179622 (2024-006)

Material Weakness 2024

Blue Ridge Community Unit School District 18

IL

Reporting Internal Control / Segregation of Duties

Corrective Action Plan: Finding No.: 2024-006; Condition: Employee Benefits reported on the June 30, 2024 ESSER III grant expenditure report did not reconcile to supporting records. Plan: The District will assign personnel independent of the grant expenditure report preparer to review the grant expe...

Corrective Action Plan: Finding No.: 2024-006; Condition: Employee Benefits reported on the June 30, 2024 ESSER III grant expenditure report did not reconcile to supporting records. Plan: The District will assign personnel independent of the grant expenditure report preparer to review the grant expenditure reports for proper coding of grant expenditures prior to submission of the grant expenditure reports.; Anticipated date of completion: 6/30/2026; Name of Contact Person: Ryan Peyton; Management Response: Management will implement the auditor's recommendation in the year ended June 30, 2026.

View Audit 392024

Finding 1179563 (2024-006)

Material Weakness 2024

Economic Action Committee of the Gulf Coast

TX

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting § 200.303 § 200.512

Finding 2024-006 - Late Submission of Data Collection Form Corrective Action Plan: Management will implement a formal compliance calendar to track Uniform Guidance reporting deadlines. Responsibility for submission will be assigned to a specific individual. Audit progress will be monitored regularly...

Finding 2024-006 - Late Submission of Data Collection Form Corrective Action Plan: Management will implement a formal compliance calendar to track Uniform Guidance reporting deadlines. Responsibility for submission will be assigned to a specific individual. Audit progress will be monitored regularly to ensure timely completion and submission of the reporting package and Data Collection Form. Additionally, management will address underlying financial reporting control weaknesses identified in this audit to improve overall audit readiness. Responsible Party: Executive Director, Board of Directors (oversight) Planned Completion Date: Compliance calendar implemented March 11, 2026; ongoing monitoring thereafter.

View Audit 391938

Finding 1179560 (2024-005)

Material Weakness 2024

Economic Action Committee of the Gulf Coast

TX

Subrecipient Monitoring Material Weakness Reporting § 200.302 § 200.303 § 200.334

Finding 2024-005 - Major Program – Reporting Support and Review Corrective Action Plan: Procedures will be implemented to:  Retain detailed support for all Federal reports, including reconciliations to the general ledger  Require documented supervisory review prior to submission  Maintain documen...

Finding 2024-005 - Major Program – Reporting Support and Review Corrective Action Plan: Procedures will be implemented to:  Retain detailed support for all Federal reports, including reconciliations to the general ledger  Require documented supervisory review prior to submission  Maintain documentation of adjustments occurring after report submission  Establish standardized reporting workpapers for each reporting period Responsible Party: Fiscal Officer (preparation), Executive Director (review and approval) Planned Completion Date: Effective March 11, 2026; procedures implemented for all future reports.

View Audit 391938

Finding 1179535 (2024-009)

Material Weakness 2024

Restoration Christian Ministries

CO

Reporting Internal Control / Segregation of Duties § 200.328 § 200.329

Finding Number: 2024-009 Finding Title: Untimely or Incomplete Performance and Financial Reporting Federal Program Information: • Federal Agency: Department of Housing and Urban Development; Department of the Treasury • Assistance Listing Numbers (ALN): 14.251 • Federal Program Names: Economic Devel...

Finding Number: 2024-009 Finding Title: Untimely or Incomplete Performance and Financial Reporting Federal Program Information: • Federal Agency: Department of Housing and Urban Development; Department of the Treasury • Assistance Listing Numbers (ALN): 14.251 • Federal Program Names: Economic Development Initiatives—Special Project, Neighborhood Initiative and Neighborhood Stabilization Program Compliance Requirement: Reporting - Performance and Financial (2 CFR §200.328 and §200.329) Questioned Costs: $0 Repeat Finding: No Management's Response: The Board of Directors of Restoration Christian Ministries agrees with the finding. The Organization relied on subrecipients or partners to submit reports and was not aware of its responsibility to ensure the reports were submitted timely. Procedures are being implemented to ensure all reports are provided to the Organization to ensure compliance with the federal grants. Corrective Action Plan: Corrective Action #1: Federal Reporting Tracking System • Action: Create comprehensive federal reporting calendar/tracker identifying all required reports, responsible parties, and due dates for each federal award. Implement tracking system (spreadsheet or database) with automated reminders at 60, 30, and 15 days before deadlines. Include fields documenting report completion, review, and submission dates. Board President will review tracking system monthly. • Responsible Person/Title: Board President • Anticipated Completion Date: February 28, 2026 Corrective Action #2: Responsibility Assignment • Action: Formally assign responsibility for federal reporting by Board resolution for each grant. Designate specific Board member(s) responsible for each federal grant. Establish backup designees for each report. Consider engaging consultant or part-time grants administrator if reporting volume warrants. • Responsible Person/Title: Board of Directors • Anticipated Completion Date: January 31, 2026 Corrective Action #3: Report Preparation and Review Procedures • Action: Develop standardized procedures for preparing, reviewing, and submitting federal reports. Require all reports drafted at least 10 days before due date. Implement mandatory Board Treasurer review and approval before submission. Create checklists ensuring reports are complete and supported by adequate documentation. • Responsible Person/Title: Board President • Anticipated Completion Date: February 28, 2026 Corrective Action #4: Subrecipient Reporting Requirements • Action: Include specific reporting requirements and deadlines in all subaward agreements. Require subrecipients to submit information to Restoration Christian Ministries at least 15 days before federal reporting deadlines. Implement follow-up procedures for delinquent subrecipient submissions. Designate Board member responsible for subrecipient communication. • Responsible Person/Title: Board President • Anticipated Completion Date: February 28, 2026 Corrective Action #5: Board Oversight Process • Action: Include federal reporting compliance status as standing agenda item at monthly Board meetings. Report any missed deadlines or compliance issues immediately to full Board. Conduct quarterly reviews of federal reporting tracking system to ensure accuracy and completeness. • Responsible Person/Title: Board President • Anticipated Completion Date: March 31, 2026 (initial); Ongoing monthly/quarterly thereafter Corrective Action #6: Training and Technical Assistance • Action: Board members assigned to grants will receive training on federal reporting requirements, deadlines, and procedures. Ensure Contract Accountant is available to provide financial data needed for federal reports. Consider engaging consultant to provide training and technical assistance on federal reporting. • Responsible Person/Title: Board President

View Audit 391915

Finding 1179531 (2024-006)

Material Weakness 2024

Restoration Christian Ministries

CO

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.302 § 200.305 § 200.317 § 200.318 § 200.327

Finding Number: 2024-006 Finding Title: Financial Policies and Procedures Federal Program Information: • Federal Agency: Department of Housing and Urban Development; Department of the Treasury • Assistance Listing Numbers (ALN): 14.251 and 21.027 • Federal Program Names: Economic Development Initiat...

Finding Number: 2024-006 Finding Title: Financial Policies and Procedures Federal Program Information: • Federal Agency: Department of Housing and Urban Development; Department of the Treasury • Assistance Listing Numbers (ALN): 14.251 and 21.027 • Federal Program Names: Economic Development Initiatives—Special Project, Neighborhood Initiative and Neighborhood Stabilization Program; Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Financial Management and Standards of Financial Management Systems (2 CFR §200.302(b)); Allowable Costs (2 CFR §200.403-405); Procurement (2 CFR §200.317-327); Cash Management (2 CFR §200.305); Travel Costs (2 CFR §200.475) Note: Organization has existing Conflict of Interest policy in compliance with 2 CFR §200.318(c)(1). Questioned Costs: $0 Repeat Finding: No Management's Response: The Board of Directors of Restoration Christian Ministries agrees with the finding. The Organization will establish formalized accounting policies and procedures that adhere to the requirements of the Uniform Guidance. Corrective Action Plan: Corrective Action #1: Comprehensive Policy Manual Development • Action: Engage consultant or work with Contract Accountant to develop comprehensive written financial policies and procedures manual addressing all Uniform Guidance requirements, including: (a) Allowable costs (2 CFR §200.403-405); (b) Procurement (2 CFR §200.317-327); (c) Cash management (2 CFR §200.305); (d) Travel costs (2 CFR §200.475); (e) Time and effort documentation; (f) Equipment management; (g) Subrecipient monitoring; (h) Financial reporting; and (i) Record retention. Ensure policies address financial management system requirements under 2 CFR §200.302. Tailor policies to Organization's all-volunteer structure. [Note: Organization already has Conflict of Interest policy complying with 2 CFR §200.318(c)(1).] • Responsible Person/Title: Board Treasurer with Contract Accountant • Anticipated Completion Date: April 30, 2026 Corrective Action #2: Board Approval and Adoption • Action: Present draft policies to full Board of Directors for review and input. Board will formally adopt policies by resolution. Document approval in Board meeting minutes. • Responsible Person/Title: Board President • Anticipated Completion Date: May 31, 2026 Corrective Action #3: Dissemination and Training • Action: Distribute approved policies to all Board members and Contract Accountant. Conduct training session for Board members and Contract Accountant on new policies and procedures. Board members and Contract Accountant will sign acknowledgment of receipt and understanding. Make policies readily accessible (e.g., shared drive, Board portal). • Responsible Person/Title: Board President • Anticipated Completion Date: June 30, 2026 Corrective Action #4: Implementation Tools and Support • Action: Develop templates, forms, and tools to support policy implementation. Create workflow diagrams and checklists for common transactions. Establish Board Treasurer as primary resource for policy implementation questions. • Responsible Person/Title: Board Treasurer and Contract Accountant • Anticipated Completion Date: July 31, 2026 Corrective Action #5: Annual Policy Review Process • Action: Schedule annual review of policies to ensure continued Uniform Guidance compliance. Update policies as needed for regulatory or organizational changes. Submit material policy changes to full Board for approval. • Responsible Person/Title: Board Treasurer • Anticipated Completion Date: Annually, beginning June 2027 Corrective Action #6: Governance Structure Assessment • Action: Board will evaluate establishing Audit Committee or combined Finance/Audit Committee to provide enhanced oversight of financial management, internal controls, and federal compliance. If Board size prohibits separate committee, designate at least two Board members with specific oversight responsibilities. • Responsible Person/Title: Board President • Anticipated Completion Date: June 30, 2026

View Audit 391915

Finding 1179528 (2024-004)

Material Weakness 2024

Restoration Christian Ministries

CO

Subrecipient Monitoring Reporting Matching / Level of Effort / Earmarking § 200.302

Finding Number: 2024-004 Finding Title: Incorrect Recording of Expenditures that were Notes Receivable Draws Federal Program Information: • Federal Agency: Department of Housing and Urban Development; Department of the Treasury • Assistance Listing Numbers (ALN): 14.251 and 21.027 • Federal Program ...

Finding Number: 2024-004 Finding Title: Incorrect Recording of Expenditures that were Notes Receivable Draws Federal Program Information: • Federal Agency: Department of Housing and Urban Development; Department of the Treasury • Assistance Listing Numbers (ALN): 14.251 and 21.027 • Federal Program Names: Economic Development Initiatives—Special Project, Neighborhood Initiative and Neighborhood Stabilization Program; Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Financial Management and Standards of Financial Management Systems (2 CFR §200.302); GAAP Questioned Costs: $0 (classification error, not allowability issue) Repeat Finding: No Management's Response: The Board of Directors of Restoration Christian Ministries agrees with the finding. The Organization's accountant was unaware that the federal grant payments to the subrecipient were considered draws on a note receivable. Corrections have been made to improve communication with the accountant to ensure the accountant is aware of key grant provisions and to ensure note receivable draws are being properly accounted for in the general ledger. Corrective Action Plan: Corrective Action #1: Grant Communication Protocol • Action: Establish formal process requiring Board members to provide detailed grant term summaries to Contract Accountant for all new federal awards. Create standardized grant summary form identifying key provisions affecting accounting treatment, including repayment terms, loan features, and contingencies. Hold kick-off meetings between Board representatives and Contract Accountant for all awards exceeding $100,000. Board President will maintain grants management file accessible to Contract Accountant. • Responsible Person/Title: Board President and Contract Accountant • Anticipated Completion Date: January 31, 2026 Corrective Action #2: Transaction Classification Review Procedures • Action: Implement review procedures requiring evaluation of all federal program disbursements to determine proper classification (expense vs. loan/note receivable). Contract Accountant will develop decision tree guidance. Require Board Treasurer approval for all disbursements exceeding $50,000 with verification of proper classification. • Responsible Person/Title: Contract Accountant and Board Treasurer • Anticipated Completion Date: February 28, 2026 Corrective Action #3: Chart of Accounts Modification • Action: Create separate general ledger accounts for notes receivable related to federal programs. Establish clear account coding guidelines distinguishing between grant expenditures and note receivable advances. Board Treasurer will review and approve modifications. • Responsible Person/Title: Contract Accountant • Anticipated Completion Date: January 31, 2026 Corrective Action #4: Professional Development • Action: Ensure Contract Accountant receives training on identifying and accounting for various federal program transaction types, including loans, advances, and conditional grants. Consider engaging consultant with federal grants expertise for technical assistance. Provide Board members basic training on federal grant structures to improve communication with Contract Accountant. • Responsible Person/Title: Board Treasurer • Anticipated Completion Date: February 28, 2026 Corrective Action #5: Quarterly Account Review • Action: Conduct quarterly reviews of all federal program accounts to verify proper transaction classification. Reconcile notes receivable balances to underlying agreements and repayment schedules. Report findings to full Board quarterly. • Responsible Person/Title: Board Treasurer • Anticipated Completion Date: March 31, 2026 (initial); Ongoing quarterly thereafter

View Audit 391915

Finding 1179524 (2024-002)

Material Weakness 2024

Restoration Christian Ministries

CO

Reporting Internal Control / Segregation of Duties § 200.510

Finding Number: 2024-002 Finding Title: Incomplete Schedule of Expenditures of Federal Awards Federal Program Information: • Federal Agency: Department of the Treasury • Assistance Listing Number (ALN): 21.027 • Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Compliance Requi...

Finding Number: 2024-002 Finding Title: Incomplete Schedule of Expenditures of Federal Awards Federal Program Information: • Federal Agency: Department of the Treasury • Assistance Listing Number (ALN): 21.027 • Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Reporting - Schedule of Expenditures of Federal Awards (2 CFR §200.510(b)) Questioned Costs: $0 Repeat Finding: No Management's Response: The Board of Directors of Restoration Christian Ministries agrees with the finding. The Organization was unaware that pass-through funds from federal sources are required to be presented on the SEFA and has implemented procedures to ensure all grants are evaluated to ensure the SEFA is complete. Corrective Action Plan: Corrective Action #1: Federal Award Identification and Tracking System • Action: Create comprehensive federal awards tracking log including all direct and pass-through awards. Implement quarterly review process where Board members and Contract Accountant meet to identify all federal awards. Develop checklist to determine SEFA inclusion requirements. Board President will maintain master list of all grant agreements. • Responsible Person/Title: Board President and Contract Accountant • Anticipated Completion Date: January 15, 2026 Corrective Action #2: SEFA Reconciliation Procedures • Action: Establish quarterly procedures to reconcile SEFA to general ledger. Cross-reference all grant agreements and award letters. Document reconciliation process with dual sign-off from Contract Accountant and Board Treasurer. • Responsible Person/Title: Contract Accountant • Anticipated Completion Date: January 31, 2026 (initial); Ongoing quarterly thereafter Corrective Action #3: Independent Review Process • Action: Implement mandatory Board Treasurer independent review of SEFA prior to audit commencement. Treasurer will verify completeness by tracing to source documents. Present draft SEFA to full Board for review before finalizing. • Responsible Person/Title: Board Treasurer • Anticipated Completion Date: Annually, beginning with FY 2025 audit Corrective Action #4: Training • Action: Provide training to Contract Accountant and all Board members on SEFA requirements, including identification of federal awards and pass-through funding, and Board oversight responsibilities. • Responsible Person/Title: Board President • Anticipated Completion Date: February 28, 2026

View Audit 391915

Finding 1179521 (2024-002)

Material Weakness 2024

Ida B Wells, INC

CT

Reporting Significant Deficiency Internal Control / Segregation of Duties

Management has maintained appropriately trained and experienced personnel to ensure the financial close process has been completed accurately and timely.

View Audit 391894

Corrective Action Plans

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