Corrective Action Plans

2024-003 – Significant Deficiency in Internal Control over Compliance and Other Matters – Special Tests and Provisions Name of Contact Person: Mariya Lovishchuk, Development Director Corrective Action: This was a clerical error issue. Davis Bacon Wages were paid throughout the entire project and certified payroll was provided. However, the original construction contract did not include the correct prevailing wage language. Prevailing wages requirement was discussed and agreed upon prior to issuance of contract, but wrong language was inserted by mistake. Upon discovery of the wrong language, contract amendment was immediately issued to rectify. Proposed Completion Date: Already complete

The county will implement a formal reconciliation process between grant tracking spreadsheets and the General Ledger. This reconciliation will be performed at minimum quarterly (when most grants are submitted) and shall include: 1. Documented Comparison: A side-by-side verification of total expenditures and revenues per grant on amounts reported within the general ledger and amounts included on subsidiary tracking spreadsheets. This verification (crosswalk) should include specific general ledger account numbers used for tracking revenues and expenditures. 2. Supervisory Review: Reconciliations should be reviewed and signed off by a person independent of the spreadsheet preparation 3. System Integration: In January 2025, the County implemented a new ERP software system, which offers a grant module and features to identify grant items to help eliminate reliance on manual “shadow” systems or spreadsheets.

The Morgan County Economic Development Office acknowledges the status and final reports for the CDBG and Home grant programs must be submitted by the required due dates. The office will actively monitor all deadlines and ensure that all reports are completed and submitted in a timely manner in accordance with those requirements.

The Fiscal Officer will improve tracking and reporting procedures by requesting a clear outline from all funding and liaising parties at the start of all future projects. As well as making sure all reporting and procedures are adhered to by those parties.

United States Environmental Protection Agency Capitalization Grants for Clean Water Revolving Funds ALN: 66.458 Condition: The Village has not updated its existing policies and written procedures to conform to Uniform Guidance requirements. Planned Corrective Action: The Village’s Treasurer will work on updating all policies and procedures relating to the U.S. Office of Management and Budget Uniform Guidance to ensure the Village policies are in compliance with these guidelines. Responsible Contact Person: Linda M. Morrisey Village Treasurer Village of Ocean Beach Bay & Cottage Walks, P.O. Box 457 Ocean Beach, NY 11770 Anticipation completion date: March 31, 2026

Finding 2024-004 | Untimely Submission of Single Audit Reporting Package Noncompliance | Repeat Finding | Third Consecutive Year (2022-001, 2023-006, 2024-004) | 2 CFR §200.512(a) Finding Number: 2024-004 Planned Completion Date: June 30, 2026 (FY2025 single audit submitted to FAC on or before this date) Responsible Official(s): Josafat Saldivar, Finance Director (primary); Juan E. Rodriguez, Executive Director (oversight and Board reporting) Agency Response: STDC acknowledges the finding and concurs that the Single Audit reporting package for the fiscal year ended September 30, 2024 was not submitted to the Federal Audit Clearinghouse (FAC) by the required deadline of June 30, 2025, under 2 CFR §200.512(a). STDC recognizes that this represents the third consecutive year in which the single audit has been submitted late, following Finding 2022-001 and Finding 2023-006, and takes seriously the compliance obligation and the operational risks associated with continued noncompliance with the submission deadline. The late submissions across FY2022, FY2023, and FY2024 are the direct result of a series of compounding operational disruptions originating with the Council's transition to a new accounting system in January 2022, further complicated by a ransomware attack in November 2023. Management provides the following chronological context to demonstrate the depth and duration of the disruptions that collectively prevented timely audit completion across three consecutive fiscal years: Accounting System Transition (2021-2022): In March 2021, following a six-month procurement process, STDC contracted with Lance, Soil & Lunghard, LLP (LSL, LLP), an authorized AccuFund reseller, to implement AccuFund as its new accounting platform. The go-live date was delayed from October 1, 2021 to January 1, 2022 to allow the Board of Directors to approve related payroll and operational changes. When the system launched on January 1, 2022, critical components — including the fringe benefit and indirect cost allocation pools, timesheet approvals, budget, requisitions, funding reports, and travel modules — had not been configured. Transaction history and beginning balances were imported incorrectly. Work with LSL, LLP concluded in September 2022 without resolution of these deficiencies. AccuFund Remediation (2022-2023): Beginning in October 2022, STDC engaged AccuFund directly to identify and correct the configuration deficiencies. In February 2023, AccuFund assigned a Senior Consultant to the engagement. Between March and October 2023, the Consultant worked with STDC to configure the fringe benefit and indirect cost pools, reconfigure payroll, and correct the transaction history and trial balances that had been incorrectly imported during the original implementation. This remediation work was still ongoing at the time of the ransomware attack. Ransomware Attack and Recovery (November 2023 – September 2024): On November 4, 2023, STDC suffered a ransomware attack that compromised the SQL database housing all AccuFund financial data. Following recovery efforts, STDC migrated to AccuFund Anywhere, a cloud-hosted version of the platform, and regained system access in late December 2023. Between January and March 2024, staff manually re-entered transaction data that had been processed offline during the system outage. Between April and September 2024, STDC continued working with the AccuFund Senior Consultant to finalize system configurations and correct remaining beginning balance and transaction history issues — many of which dated back to the original 2022 implementation errors. Sequential Audit Completion (2024-2026): The cumulative effect of these disruptions required STDC to complete three fiscal year audits in sequence rather than on schedule. The FY2022 audit was completed in December 2024 and submitted to the FAC, with a revised submission in January 2025 following an HHSC review that identified a misclassification of assistance listing number balances. The FY2023 audit was completed and submitted to the FAC in July 2025. Work on the FY2024 audit commenced in August 2025 and is being finalized for Board approval on March 26, 2026, with FAC submission to follow immediately. The FY2025 fiscal year ended September 30, 2025, and STDC is actively preparing for that audit with a target FAC submission date of June 30, 2026. Management acknowledges that the cumulative nature of these disruptions resulted in a multi-year audit backlog that could not be resolved within the annual submission deadlines. STDC is committed to breaking this cycle. With the AccuFund system now stable, the cloud migration complete, and three years of corrected financial records in place, STDC has the accounting infrastructure necessary to support timely audit completion going forward. The corrective actions below reflect the specific steps being taken to achieve the June 30, 2026 FY2025 submission target and to prevent recurrence in future years. Note: Because the FY2025 fiscal year ended September 30, 2025 and the FY2024 audit is being finalized concurrently, several of the steps below are already underway as of the date of this report (March 2026). Target dates reflect the current accelerated timeline required to achieve FAC submission by June 30, 2026. Corrective Actions to Be Implemented: Action 1 (Target: In progress — April 15, 2026): FY2025 Audit Preparation Timeline — A compressed audit preparation schedule has been established for the FY2025 audit (year ended September 30, 2025) with the following key milestones: final trial balance and year-end reconciliations delivered to the auditor by April 15, 2026; draft financial statements completed by the auditor by May 31, 2026; management review and final adjustments completed by June 10, 2026; final audit report issued by the auditor and reviewed and approved by the STDC Board of Directors by June 25, 2026; and submission of the complete reporting package to the Federal Audit Clearinghouse by June 30, 2026. Action 2 (Target: In progress — March 31, 2026): Auditor Engagement — FY2025 — De La Garza CPA Firm, P.C. has been engaged for the FY2025 audit. Fieldwork scheduling and document request lists are being coordinated to ensure the auditor can begin and complete work within the compressed timeline. STDC will provide all requested documentation on a priority basis to avoid delays in fieldwork. Action 3 (Targets: March 26, 2026; April 22, 2026; June 25, 2026): Board Reporting — The Executive Director will present audit status to the Board of Directors at the March 26, 2026 board meeting and at each subsequent board meeting. The June 30, 2026 FAC submission target will be tracked as a standing Board-level performance objective with final review and approval of the FY2025 audit report by the Board of Directors targeted for June 25, 2026. Action 4 (Target: July 31, 2026): FY2026 Audit Preparation Timeline — Upon submission of the FY2025 audit, STDC will immediately follow its formal written audit preparation timeline for the FY2026 audit (year ended September 30, 2026), with milestone dates beginning at fiscal year-end and targeting FAC submission by June 30, 2027. The timeline will be modeled on the Single Audit Submission Timeline Protocol adopted under Findings 2022-001 and 2023-006 and approved by the Executive Director. Monitoring and Evaluation: The Finance Director will maintain a running audit preparation status log updated weekly through June 30, 2026, and monthly thereafter. The Executive Director will report audit status to the Board of Directors at each meeting. The immediate target outcome is submission of the FY2025 single audit reporting package to the Federal Audit Clearinghouse on or before June 30, 2026. Achievement of this milestone will demonstrate STDC's return to timely compliance and is expected to support removal of the high-risk auditee designation in the FY2025 audit cycle.

Finding type: Significant deficiency

Federal awards: 14.251 Economic Development Initiative, Community Project Funding, and Miscellaneous Grants

Criteria: Organizations spending more than the minimum threshold in Federal awards must submit an audit reporting package to the Federal Audit Clearinghouse within nine months of the end of the fiscal year per the requirements of the Uniform Guidance.

Condition: The Organization did not submit the reporting package by the required submission date for the year ended September 30, 2024.

Management, in conjunction with COTS's outsourced accounting team, has implemented enhanced grant review procedures to ensure all funding agreements are evaluated for federal characteristics when awards are received and again prior to fiscal year-end close. Going forward, COTS's outsourced accounting team will maintain a complete grant inventory, document the federal/nonfederal determination for each award, and review all new and existing grant agreements before year-end to confirm whether Single Audit reporting requirements apply. Management believes these procedures will help ensure timely identification of federal awards and timely submission of future audit reporting packages.

TOFMHS concurs with the finding. The Agency filed both semi annual and annual financial reports for three grants during the fiscal year on a timely basis. The one semi-annual report was inadvertently filed late. However, upon notice by the Payment Management System of it being overdue, it was immediately filed. The Agency will prepare a checklist of required federal reports by the finance department, which will be monitored by the Program Director. Responsible Person: Fiscal Officer/Program Director Completion Date: January 1, 2025

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

Corrective Action Plan: Management has been in contact with HRSA and the Office of Federal Assistance Management Division of Financial Integrity to keep them informed of the status of required financial reporting. The audit for the year end June 30, 2025 has been expedited and will be issued prior to the reporting deadline. To prevent recurrence, management will implement enhanced controls over grant reporting compliance including: •Establishment of a reporting calendar with key deadlines, •Implementation of a standardized checklist to ensure all reporting is completed timely and accurately, and •Periodic management review of reporting status to ensure deadlines are met. Responsible Party - Judy Stein, CFO Estimated Completion - 3/31/2026

Finding # 2024-003 Corrective Action Plan: Subsequent to year-end, management has deposited the required funds into the reserve account to bring the organization into compliance with the USDA loan agreement. To prevent recurrence, management will strengthen its monitoring of debt covenant and reserve requirements by implementing the following controls: •Establish a tracking schedule for all loan-related requirements, •Incorporation of reserve funding requirements into the organization’s cash flow planning process, and •Review by appropriate management personnel to ensure timely compliance with all loan agreement provisions. Responsible Party - Judy Stein, CFO Estimated Completion - 3/31/2026

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.

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.

The district will create an SOP for the reporting process, including reviewing procedures to ensure accuracy of reporting periods. The district will also create and maintain an SOP for maintaining supporting documentation in the reporting package for all amounts and keeping staff trained on these SOPs.

The Board of Directors for the district will be monitoring all filing to be able to account for documentation available within the district. Also, there will be implementing document control procedures for all costs and invoices within the district.

2024-005 - Reporting Corrective Action Plan: Management agrees with the finding and has committed the resources giving rise to the finding. Person(s) Responsible: M. Michael Garza Timing for Implementation: June 30, 2026.

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

Management agrees with the finding and has implemented several corrective actions to strengthen internal controls and financial reporting processes. Porchlight implemented new accounting software in 2025, Sage Intacct, which includes a grants dimension that allows the organization to track financial activity by individual grant and sub‐grant at the transaction level. This system enables the preparation of detailed grant‐level financial reports, including profit and loss statements for individual grants. Internal accounting working papers further document detailed line‐item tracking instructions of grant revenues and expenditures. These processes provide improved transparency and audit support for grant expenditures. Indirect costs are now allocated using a nights‐of‐shelter allocation methodology, which is consistent with guidance provided by Porchlight’s government partner organizations. This methodology has been documented and is applied consistently across applicable programs. Monthly reconciliations of significant general ledger accounts are now performed and documented on a regular basis. These reconciliations are reviewed by the Executive Director, who is currently completing additional training in our new accounting processes to further support this oversight function. Management will continue monitoring the reconciliation process to ensure it is completed in a timely and consistent manner. Journal entries will be reviewed on a monthly basis during scheduled meetings between the Executive Director and the Finance Director to ensure proper documentation and approval. Cash disbursement controls have also been strengthened. Accounts Payable staff prepare a weekly payment list, which is reviewed and approved by the Finance Director. The Executive Director then performs a secondary review and signs checks or approves payments. ACH transactions are submitted to the bank by the AP accountant, and require final authorization through the bank’s online system by either the Executive Director, or the Finance Director when the Executive Director is unavailable. These procedures provide documented authorization of cash disbursements. Consistent financial reporting to the Board is in the final processes. The reporting component of the Sage Intacct implementation has required additional refinement, and we are working with outside consultants who are familiar with our specific system setup to ensure reporting processes operate effectively. Financial reports will be presented to the Board of Directors Finance Committee, which meets with the Executive Director and Finance Director every two months to review financial performance and discuss financial results. Financial statements will be prepared internally prior to the audit, which improves management oversight and reduces the need for audit adjustments. Additionally, Porchlight has significantly strengthened its finance department staffing. A new Finance Director began full‐time employment in June 2024. New Accounts Payable and Accounts Receivable accountants, as well as accounting assistants, have been hired and trained on Porchlight’s financial procedures and Sage Intacct. External accounting consultants have also been engaged to assist with audit preparation, reconciliations, and other accounting functions when additional capacity is needed. Management will continue to evaluate internal controls and financial reporting processes to ensure compliance with applicable financial reporting and grant requirements. Person(s) Responsible: Halle Pollay Timing for Implementation: In Process

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 2024-004 - 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 ensure that the data collection forms are submitted electronically to the FAC each fiscal year going forward. Action Taken: We agree with Finding 2024-004 and the recommendation described in the accompanying schedule of findings and questioned costs. The project was unable to pay the prior audit fees timely due to limited available cash flow causing a delay in the audits. Management will work to improve cash flow for timely payment of the required annual audits. Sincerely yours, Shannon Pow President Remnant Management, Inc. Managing Agent effective October 1, 2024

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 2024-003 - 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: We recommend that management monitor the annual surplus cash and all required payments from any surplus cash. Action Taken: We agree with Finding 2024-003 and the recommendation described in the accompanying schedule of findings and questioned costs. Management will submit a request to re-evaluate payments due based on no surplus cash available at December 31, 2020 - December 31, 2024. Sincerely yours, Shannon Pow President Remnant Management, Inc. Managing Agent effective October 1, 2024

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