Corrective Action Plans

AIDS United submits the following corrective action plan for the identified findings for the audit period January 1, 2024 through December 31, 2024: Finding 2024-001 Material Adjusting Journal Entries and Late Filing of Data Collection form Corrective Action: Action 1: Implement a Formal Month-End and Year-End Close Process • Develop a plan with the Executive to onboard additional accounting support at both the staff and senior accountant levels. • Require all reconciliations to be completed within 15 business days of month-end. Responsible Party: Controller Completion: Date12/31/2025 Status: Planned Action 2: Strengthen Review Controls Over Journal Entries • Implement system-based controls where available in Intacct. Responsible Party: Controller Completion Date: 12/31/2025 Action 3: Improve Financial Statement Preparation Procedures • Develop a documented process for drafting, reviewing, and finalizing financial statements prior to sending them to external auditors. • Incorporate a pre-audit internal review meeting to validate account balances and disclosures. Responsible Party: Controller Completion Date: March 2026 Action 4: Ensure Timely Federal Audit Clearinghouse Submission • Start audit process earlier in 2026 no later than end of Q1 Responsible Party: Controller Completion Date: Next audit cycle

Insufficient Understanding of Federal Compliance Requirements The County will work to improve their understanding of federal compliance requirements for each grant award and documentation of procedures implemented to ensure compliance.

FA 2024-001 Strengthen Controls over Expenditures Compliance Requirement: Special Tests and Provisions Internal Control Impact: Material Weakness Compliance Impact: Material Noncompliance Federal Awarding Agency: U.S. Department of Education Pass-Through Entity: Georgia Department of Education Assistance Listing Number and Title: COVID-19 - 84.425U - American Rescue Plan Elementary and Secondary School Emergency Relief Fund Federal Award Number: S425U210012 (Year: 2021) Questioned Costs: None Description: Construction-related weekly payroll timesheets were not produced to satisfy the Wage Rate Requirements according to the Davis-Bacon Act. Corrective Action Plans: The School District will review and update the current procedures to ensure that the Wage Rate requirements are met. Estimated Completion Date: June 30, 2025 Contact Person: Daisy M. Prather, Finance Director Telephone: (478) 836-3131, extension 5007 Email: daisy.prather@crawfordschools.org

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

Finding 2024-002 – Special Tests and Provisions The Organization did not properly determine the sliding fee discount given to patients selected for testing based on the sliding fee scale in effect for the year ended April 30, 2024. Since this occurrence, a new position has been created and staffed- Patient Service Representative Team Lead. This staff member oversees and trains the Patient Service Representatives in their responsibilities, including the sliding fee discount schedule application and compliance. A focus of this newly created position is training and compliance of the sliding fee schedule throughout all the clinics, which is ongoing from Oct. 15, 2024. The Patient Service Team Lead will be supervised by the Revenue Cycle Manager as part of the Finance Department reporting to the Interim CEO Bob Rodriguez, who will oversee this effort. The new position and implementation of training to correct the finding commenced Oct. 15, 2024.

FINDING 2024-004 Information on the federal program: Subject: Water and Waste Disposal Systems for Rural Communities – Reporting Federal Agency: U.S. Department of Agriculture Assistance Listing Number: 10.760 Federal Award Number: N/A Pass-Through Entity: N/A Compliance Requirements: Reporting Audit Findings: Material Weakness, Noncompliance Condition: The District did not have proper controls in place to ensure that the RD442-2 and RD 442-3 forms were filled out and submitted. Context: Form RD442-2 and Form RD442-3 were not submitted to the granting agency. The District may submit the financial data in other forms, however, the required reporting information was not submitted at all for the year under audit. The forms are required to be submitted on GAAP accrual basis. Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The third-party accounting firm will prepare the required forms which will be reviewed by the Board of Directors prior to submission. Responsible Party and Timeline for Completion: The third-party accounting firm and the Board of Directors will implement the corrective action plan, which will go into effect with the next required submission for 2025.

Rural Rental Housing Loans - Federal Assistance Listing #10.415 Recommendation: We recommend ensuring the proper preparation and review of the balance sheets with indication of review with a sign off. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The year-end actual income statements will be prepared by the Portfolio Accountant based on year-end policies and procedures. The income statement will be reviewed by the Property Director, the Finance Director, initialed and then entered into MINC. Names of the contact persons responsible for corrective action: Julie Schueller, Finance Director and Deanna Hemmesch, Executive Director Planned completion date for corrective action plan: December 31, 2025

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

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

VIEWS OF RESPONSIBLE OFFICIALS The PRDE acknowledges the auditor’s finding. Management clarifies that all requested information was available and existed within the PRDE systems; however, it was not provided in a timely manner due to circumstances beyond the Department’s control, including competing deliverables required from the same operational areas. Regarding the disbursement vouchers referenced by the auditors, including the Excel Master and Adjustment Reports, the program area reviewed the documents and confirmed that they reconciled accurately. The timing differences were due to automatic and manual adjustments. All supporting information was available in PRDE’s databases, including SIFDE and MIPE, and has been included as part of this response for further reference. For the student billed for $34,000, all supporting documentation—such as the proposal, approval of payment, and related evidence—was and remains available in MIPE. As part of PRDE’s internal controls, all necessary documentation must be uploaded into the system before any transaction can proceed. It is also important to note that auditors were granted full access to both MIPE and SIFDE at the beginning of their audit procedures. In relation to Findings 4 and 5, documentation was available in MIPE. Management notes that certain contracts and proposals may have amendments, and it appears the auditors may have reviewed an incorrect version of the file. Similarly, for Finding 6, the area revalidated the information during the preparation of this response and confirmed that the documentation cited as missing was, in fact, available in the MIPE portal. Additionally, management evaluated the matter related to expense recognition. In accordance with federal regulations and to ensure compliance with IDEA requirements, PRDE is authorized to cover certain expenses of the Preschool Grant (84.173) using IDEA Part B (84.027) funds. As detailed in the prior Single Audit report: “IDEA Part B, Section 611 funds can be used for students ages 3 to 21. According to the description provided by OSEP, the Grants to States program assists states in meeting the excess costs of providing special education and related services to children with disabilities. States must serve all children with disabilities between the ages of 3 through 21, unless inconsistent with State law or court orders. Under 34 CFR § 300.202(a), the LEA must use IDEA Part B funds to pay the excess costs of providing special education and related services to children with disabilities.” Regarding the vouchers related to training services, PRDE does not concur with that portion of the finding, as the contract does not stipulate that the teachers must be an IDEA employee. This contract was previously evaluated as part of the auditors’ procedures. The PRDE accepts the auditors’ recommendations and will implement corrective actions to improve the timely submission of documentation and strengthen internal coordination among areas involved in responding to audit requests Auditor Comment on Management Response for Finding No. 2024-002 In response of the second paragraph, our Auditors held three (3) meetings with PRDE’s personnel and the amounts were not reconciled. For the third response, no justification exists in MIPE or SIFDE that the amount paid is reasonable and in accordance with the contract. In fact, if all costs disclosed in the contract were applied to that student, the amount is less than the $34,000 paid monthly. For the fourth response related to Conditions 4 and 5, our Auditors requested all information to be available. We held three (3) meetings, and the information did not reconcile and was not available for our evaluation. In addition, we understand and acknowledge that contracts have amendments; however, these amendments relate to increases in the total amount because an original contract is based on a certain quantity, and amendments are made as funds are received. The cost per student established in the contract or proposals remained unchanged in these amendments. The lack of verification between the supplier's cost as stated in the contract and the cost invoiced by the supplier is a significant problem because the supplier is billing for a cost that was not part of the original agreement or proposal. For the fifth through seven responses, the Uniform Guidance requires that financial management system record the expenditures in the program that benefited from the services; no in the program with more budget.. IMPLEMENTATION DATE None RESPONSIBLE PERSON Enid Díaz Executive Director Alayra Figueroa Associate Secretary of Special Education

For ALN 16.575 Crime Victim Assistance There was a staffing change for the program after FY23-24. Since the new Program Manager joined in December 2023, she worked with her team to put together the following procedures and protocols: For direct program expenses, all copies of rent payment requests, check stubs and client signed half sheets are retained. Client support purchases have original receipts. For proof of client eligibility, the previous management team kept the files in paper format. The new management team saved all the copies of client IDs, birth certificates or passports in AWARDS to verify age of participants. Client agreements are saved electronically in AWARDS. Paper copies are stored in locked cabinets as well. All time entries are reviewed, approved, submitted, processed and saved in Paycom.

For ALN 21.027 Coronavirus State and Local Fiscal Recovery, There was a staffing change for the program between June to September 2024. The new program team met with the OSH’s fiscal team to review billing requirements and spending guidelines in the beginning of FY24-25. Starting October 2024, the new program team followed the guideline to restrict allowable expenses for clients only to the following: ● Tenant rent portion only on an emergency or as needed basis ● Move in deposit ● Housing application fees In FY24-25, clients came from referrals from OSH as agreed upon. Client eligibility is verified by data in HMIS by the program team. Client files are stored in locked cabinets in the program team’s office. All time entries are reviewed, approved, submitted, processed and saved in Paycom.

WIRC-CAA staff acknowledge that turnover in key positions led to a lapse in financial reporting and reconciliation preparation. The Organization is working with an outsourced accounting firm to complete the financial reporting and reconciliations and has hired a Director of Finance in October 2025 to fill the vacant position. Person(s) Responsible: Stacy Nimmo, Chief Executive Officer Timing for Implementation: Director of Finance hired October 2025. Monthly financial reporting resumes immediately, with full remediation expected by December 31, 2025. Detailed Steps: • Director of Finance will prepare and review monthly financial reports and reconciliations. • Board will receive and review monthly financial statements and reconciliation summaries. • Staff will receive training on financial reporting procedures. Monitoring and Verification: • Board will document review of financial reports in meeting minutes. • Internal reviews will be conducted quarterly to verify compliance. Expected Outcome: Timely and accurate financial reporting and reconciliations. Prevention of future lapses in financial oversight. Supporting Documentation: • Board meeting minutes • Monthly reconciliation reports • Internal review summaries

Internal controls will be enhanced to ensure performance and Federal Financial Reports are submitted in accordance with grant requirements.

Internal controls will be enhanced to ensure Certified Payroll Reports are submitted timely.

Internal controls will be created for reporting to the Department of Treasury for Capital expenditures to include written justification.

Internal controls will be created to ensure that the Quarterly Compliance Reports agree to internal supporting documents and that reports will be submitted timely.

Management agrees with the recommendation. Currently working on establishing a better setup with Administration on Google Drive to have every Sub-recipient and Contracted employee upload everything into each individual country folder.

Management agrees with the recommendation and will work to implement the necessary components of the recommendation. Accounting policies and procedures have been developed and will continue to be implemented.

Finding 2024-005 Compliance Requirement: Auditee Responsibility Material Weakness Assistance Living Number 93.224 Community Health Centers Grant Award Number H80CS00112 US Department of Health and Human Services Condition: The Schedule of Federal Awards (SEFA) prepared for the audit did not include pass through funds received from the State of Minnesota. Also, the SEFA for the current year contains expenditures of the prior period (COVID-19) which should have been included on the prior year SEFA. Action Planned in Response to the Finding: Additional training on single audit guidelines and federal grant management will be provided to the staff who prepare documents for submission. Official Responsible for Ensuring the CAP: Bruce Craven Planned Completion Date: December 2025

Finding 2024-004 Compliance Requirement: Reporting Material Weakness Assistance Living Number 93.224 Community Health Centers Grant Award Number H80CS00112 US Department of Health and Human Services Condition: The report for the year ending December 31, 2024, was not filed within the required report submission period. Action Planned in Response to the Finding: The new management team has established transparency with the Finance Committee and the Governing Board to increase accountability and have established a regiment which includes timely audit engagement and monthly and annual checklists that ensure deadlines are met. Official Responsible for Ensuring the CAP: Bruce Craven Planned Completion Date: December 2025

Contact Person Michelle Erickson Corrective Action Plan The Abused Adult Resource Center will form a process to ensure filing of personnel action forms is consistent and that hardcopies of personnel action forms are available. Completion Date Fiscal Year 2025

Contact Person Michelle Erickson Corrective Action Plan The Abused Adult Resource Center’s payroll allocations for grants will be documented on timesheets and the hard copies will be filed or scanned onto a local drive kept by the Center. Completion Date Fiscal Year 2025

Contact Person Michelle Erickson Corrective Action Plan The Abused Adult Resource Center’s payroll allocations for grants will be documented and reviewed by outsourced CPA firm. Completion Date Fiscal Year 2025

Contact Person Michelle Erickson Corrective Action Plan The Abused Adult Resource Center’s payroll allocations for grants will be documented on timesheets and approved and the hard copies will be filed or scanned onto a local drive kept by the Center. Completion Date Fiscal Year 2025