Corrective Action Plans

The office staff is currently working to segregate duties.

Financial Statement Finds: Accounting Records Criteria: The accounts of the Authority should include all significant transactions in the period of benefit. Contion: During the audit, certain audit adjustments were required to record transactions in the period of benefit for the General Fund, Special Projects Fund, IMPAC, and CITF Fund. Effect: The financial records for the General Fund, Special Projects Fund, IMPAC, and CITF Fund did not reflect the financial activity in the period of benefit, which could result in a material misstatement of the financial statements. This is a repeat finding from a previous year – Finding 2023-001. Recommendation: The Authority should ensure that internal control procedures over financial reporting are sufficient to identify and record all transactions in the period of benefit. Management Response: The Authority has initiated additional levels of review in order to sufficiently identify and record all transactions in the period of benefit. Anticipated Completion Date: Immediate

Recommendation: It is recommended that the Cooperative ensures the replacement reserve is appropriately funded each month to avoid future underfunding. Response: As of March 2025, the Cooperative has transferred the necessary funds to adequately cover the replacement reserve shortfall.

Recommendation: We recommend that management and those charge with governance to improve internal controls to ensure that all required EIV reports are included in tenant files. View of Responsible Officials: Management agrees with the finding.

Corrective Action Plan: 2024-001 Procurement of Capital Projects - Material Weakness Issue Summary A material weakness has been identified in the procurement process for capital projects, specifically regarding non-compliance with established procurement policies, insufficient documentation, and inadequate oversight and segregation of duties. Root Cause Analysis - Lack of formalized and consistently enforced procurement procedures. - Insufficient internal controls and monitoring mechanisms. Corrective Actions Expected Outcome - Strengthened internal control environment. - Improved compliance with procurement policies. - Reduction in risk of misappropriation, waste, or fraud. - Enhanced transparency and accountability in contracted project spending. Monitoring and Reporting The Finance Committee, the Executive Director, and the Director of Finance will monitor progress on the corrective actions and report monthly updates to the Executive Leadership Team and Audit Committee until full resolution is achieved.

The Institution acknowledges the finding regarding the late submission of the No Cost Extension (NCE) for HEERF Student Aid funds, which resulted in the ED not approving the extension and subsequently categorizing the $41,146 in distributions to 13 students as unallowed activities. The delay in submitting the NCE request was due to limited guidance and a lack of awareness regarding the June 30, 2023, filing deadline. The Institution relied heavily on the Program Management Analyst for HEERF-related guidance, and amid the evolving nature of HEERF regulations, the deadline was not effectively communicated or acted upon in time. We accept responsibility for this oversight and are committed to ensuring full compliance with all future grant-related requirements. 1. Coordination with ED for Resolution & Fund Return Process: The Institution will proactively engage with the U.S. Department of Education (ED) to determine the proper process for returning the $41,146 in overdistributed HEERF Student Aid funds. We will promptly comply with any official request from ED regarding the return of funds, ensuring timely resolution of this issue. A designated financial aid compliance officer will oversee communication with ED to track all requirements and submission deadlines. 2. Strengthening Grant Compliance Procedures: A compliance checklist will be introduced for all future grant performance period extensions to ensure deadlines are met well in advance. The Institution will implement a Grant Compliance Tracking System to monitor: a. Key deadlines for grant extensions, reporting, and compliance filings. b. Required actions for all active federal grant awards to ensure timely submissions. 3. Enhanced Staff Training & Internal Oversight: The Institution will provide training to financial aid and grant management staff on: a. Federal grant regulations and performance period compliance. b. How to track and process NCE filings in a timely manner. c. Best practices for engaging with ED to ensure compliance and funding oversight. Staff will also undergo annual refresher training on Title IV and HEERF grant compliance. 4. Improved External Communication & Regulatory Monitoring a. The Institution will establish direct communication channels with ED representatives and external regulatory advisors to ensure awareness of any changes in grant policies, extensions, and reporting requirements. b. Monthly compliance review meetings will be held internally to verify that all federal grant deadlines are on track. By implementing these corrective actions, the Institution is confident that future federal grant extensions and reporting requirements will be met on time, ensuring continued compliance with all federal funding regulations. We appreciate the recommendations provided and are committed to maintaining strong financial oversight and accountability. Personnel Responsible for Implementation: Danielle Skinner Position of Responsible Personnel: President Expected Date of Implementation: Immediate

To ensure full compliance with Title IV R2T4 requirements, the Institution is implementing the following corrective actions: 1. Process Improvements for Accurate R2T4 Calculations  The Institution will implement a dual-verification review process to ensure all R2T4 calculations are accurate before funds are returned.  A dedicated compliance review team member will oversee the manual entry of student withdrawal dates and enrollment period calculations to prevent miscalculations.  The Institution will utilize automated tools within Jenzabar Financial Aid (our Student Management System) to improve accuracy in calculating earned vs. unearned Title IV aid.  A preliminary audit of student accounts will be conducted before R2T4 calculations are finalized to catch errors before submission. 2. Strengthening Internal Controls & Timely Fund Returns  A tracking system will be implemented to flag all students requiring R2T4 processing, ensuring that returns are initiated and completed within the required 45-day period.  The Institution will conduct weekly internal reconciliation reviews of withdrawal records to verify compliance with notification and return due date requirements.  The financial aid office and student accounts team will coordinate weekly reconciliation meetings to monitor all outstanding Title IV returns. 3. Enhanced Staff Training on R2T4 Compliance  Specialized training will be provided to financial aid personnel on: a) Accurate calculation methodologies for R2T4, including proper determination of payment period percentage completion. b) Compliance with 34 CFR 668.22 and 668.173(b) regarding timely notification and return of unearned funds. c) Utilizing internal checklists and reconciliation tools to prevent future miscalculations or delays.  Staff will undergo mandatory annual compliance refresher training to stay current with federal regulations and best practices. 4. Strengthening Documentation & Compliance Monitoring  The Institution will implement a comprehensive R2T4 compliance checklist to ensure: a) All Title IV returns are properly calculated and reviewed. b) The correct withdrawal dates and enrollment period lengths are recorded. c) All funds are returned within the regulatory 45-day window.  A quarterly audit of all R2T4 transactions will be conducted by a designated compliance officer to assess and report on adherence to federal requirements. Personnel Responsible for Implementation: Danielle Skinner Position of Responsible Personnel: President Expected Date of Implementation: Immediate

The District has instituted an internal control to ensure employee payroll coding is reviewed year-to-year as program changes are made.

Cochise County WIC leadership and staff is committed to full adherence with WIC policy and will continue to implement training, monitoring, and communication to ensure compliance with federal and state regulation. The County immediately corrected this issue by conducting a mandatory training session for all WIC staff regarding the Rights and Obligations policy. During this session, the policy was read aloud and distributed in written form to all attendees. Staff were directed to inform all participants of their rights and responsibilities to include having the rights and responsibilities form signed by the participants, prior to issuing benefits, during the participant’s initial certification, and recertifications for ongoing benefits. Staff received the Rights and Obligations Pledge for review and reference. Procedures for obtaining signatures from participants not physically present in the office were reviewed. Acceptable alternatives include sending the form via email for electronic or physical signature, scheduling a follow-up in-office visit for signature collection. All staff questions were addressed to ensure clarity and consistent understanding. Ongoing reminders have been disseminated through emails and during regular staff “huddles” since the training. In addition to the immediate actions taken to correct the finding, the County also implemented long-term action steps. These steps include annual training of all WIC Staff on the Rights and Obligations policy the 2nd Monday of January. Each employee will sign an attestation confirming their understanding and compliance post-training. This attestation will be stored in the employee’s personnel record. Monthly, the WIC Manager, or designee, will review the WIC Cert. for Audit Report the last Friday of each month to identify and address any instances of missing client signatures. Additionally, the WIC Manager will manually audit 3% of the total WIC members for the month. Continuous actions implemented by County staff to correct this finding includes consistent reinforcement of signature collection protocols and policy reminders during monthly meetings and weekly “huddles”. Of note, a request was submitted to the Arizona WIC Service Desk to determine whether a report could be generated identifying all participants lacking a signed Rights and Obligations form to strengthen monitoring efforts. The response received indicated that generating this type of report is extremely complex, and at this time it is not possible.

Corrective Action Plan for Annual Audit 2024 Finding One: 2024-001 Procurement, Suspension and Debarment Auditor’s Recommendations: Tacoma-Pierce County Chamber of Commerce should conduct research and keep records for procurements not secured using a competitive process. Corrective Action: TPCC Staff will continue to use a competitive procurement process for vendors when possible, per TPCC procurement policy. CEO, Andrea Reay, will amend the current procurement policy to include a process for when competitive procurement is not possible due to unique needs/benefits. This will include a process documenting research conducted that demonstrates the unique benefits to the program/participants for any vendor that is not secured using a competitive process. Documentation includes dates discussed, names of individuals involved in the discussion and decisions made. The debarment check with sam.gov will be included in the documentation packet. Timing of remediation completion: CEO, Andrea Reay, will complete by May 31, 2025.

University awarded Subsidized Federal Direct Loans to one student in excess of their Subsidized Federal Direct Loan eligibility, and therefore did not comply with all requirements associated with excess loan proceeds. Corrective Actions Taken or Planned: This finding is considered an isolated occurrence and is not indicative of Roosevelt University’s standard administrative practices or institutional policies. The University has taken the following corrective actions to address the issue and prevent recurrence Student Account Adjustment: A reallocation of $2,900 from the Federal Direct Subsidized Loan to the Federal Direct Unsubsidized Loan was completed to correct the student’s account. All necessary updates were submitted to the U.S. Department of Education on May 16, 2025. Root Cause Analysis and System Improvements: The University will conduct a thorough root cause analysis to determine the underlying factors that led to the overaward. This analysis will be completed within 30 days. Preventative Measure and On-going Monitoring: Based upon the outcome of the root cause analysis, Roosevelt will implement appropriate system controls and develop an on-going monitoring plan to prevent similar issues in the future. These preventative measures will be established within 45 days. Roosevelt University remains committed to maintaining compliance with federal regulations and to continuously strengthening its internal controls to ensure accurate administration of Title IV funds. Anticipated Completion Date: July 15, 2025 Contact Person: Michelle Hayes, Senior Director, Financial Aid and Compliance // Michelle Stipp, Associate Vice President, Enrollment Management

Aging Cluster – Special Programs for the Aging, Title III, Part B – Assistance Listing No. 93.044 Recommendation: We recommend that the Organization consider updating its salaries and wages cost allocation methodology and process to reduce the frequency of manual adjustments based on review of individual time records and expense data and maximize the use of automated allocations based on employees’ time and effort records, effective compensation during work periods, and that are calculated in a consistent manner. We also recommend that the Organization maintain contemporaneous documentation supporting all cost allocations. Explanation of Disagreement With Audit Finding: Management does not agree with this finding. LSC program letter 22-5 emphasizes the importance of reconciliations of timekeeping reports with labor costs, distribution report or alternative reports. CLS prioritizes this practice of reconciliation and used it during the last months of 2024 to improve internal controls and minimize potential errors. We do not believe that CLA fully and fairly considered CLS’s thorough and complete reconciliation. A “material weakness” is defined as a deficiency “such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis.” Given that reconciliation is part of our internal control process used to prevent and detect/correct any errors, it should have been fully considered and is unfairly excluded from the review. For this reason, CLS considers that this is not a material weakness as the reconciliation caught and corrected these errors. Finally, the total amount of this finding is very low and should not rise to the level of material weakness. Action Taken in Response to Finding: The Organization will review this finding and current methodology and propose corrections as part of a broader review of its technologies. Name of the Contact Person Responsible for Corrective Action: Silvia Zelaya, Finance Director Planned Completion Date for Corrective Action Plan: January 2026

Legal Services Corporation Grants – Assistance Listing No. 09.706060 Recommendation: We recommend that the Organization consider updating its cost allocation methodology and process to reduce the frequency of manual adjustments based on review of individual time records and expense data and maximize the use of automated allocations that are calculated in a consistent manner that ensure costs are applied uniformly to respective benefited activities, and that are reflective on employees’ time and effort records Explanation of Disagreement With Audit Finding: Management partially agrees with this finding. First, 45 CFR Part 1635 codifies the timekeeping requirement. CLS keeps track of every case and time dedicated by staff in strict compliance with this requirement. Additionally, the distribution of expenses in the general fund, which includes LSC and two other funding sources, represents a fair method and allocation. Regarding the questioned costs, CLS disagrees with the finding of material weakness given the extremely low total dollar value. Action Taken in Response to Finding: The Organization will review this finding and current methodology and propose corrections as part of a broader review of its technologies. Name of the Contact Person Responsible for Corrective Action: Silvia Zelaya, Finance Director Planned Completion Date for Corrective Action Plan: January 2026

BVCASA agrees with the audit finding and is working to complete the final assessment of the unallowable payroll costs and reallocate the expenses to the appropriate programs. Management will self-report on the total impact of the finding to HHSC within 60 days of the date of the audit report. Additionally, management will ensure internal controls are strengthened over payroll processing and adequate reconciliations are performed each pay period to verify that payroll costs are allocated appropriately.

Corrective Action Plan: The identified conditions relate to the proper application and calculation of indirect cost rates for federal research grants. Further items relate to the assignment of the proper fringe rate for federal research grants. To mitigate future occurrences of possible incorrect rates applied to such contracts, the College has strengthened its internal controls and oversight by reviewing and reperforming calculations. Timeline for Implementation of Corrective Action Plan: These corrective actions were implemented by spring 2025.

Planned Corrective Action: Property managers track eligible invoices and submit periodic requests for reimbursement from replacement reserves. During a staff transition in the position, an invoice was inadvertently included in two requests. Planned Implementation Date of Corrective Action: Fiscal year ended 2025, accounting will review reimbursement requests do not include duplicative invoices.

As a corrective measure, BGCPR will take the following actions and will anticipate completing on June 30, 2025: a. Develop and adopt a procurement checklist to be completed and reviewed before any purchase is approved. b. Use the checklist to verify compliance with technical, budgetary, and legal requirements c. Establish rigorous mechanisms for the authorization, review, and documentation of all purchases. d. Implement monitoring procedures to control at every stage of the procurement process—from solicitation to award.

Audit period: The findings from the June 30, 2024 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the number assigned in the schedule of expenditures of federal awards. Finding 2024-001 – COVID 19 – Coronavirus State and Local Fiscal Recovery Fund - AL No. 21.027 U.S. Department of Treasury Other Matters Related to Internal Control over Compliance of the Major Program Criteria: Non‐federal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR Part 200. Condition and Context: During our testing as it related to compliance with procurement we noted that an expense for engineering services for the Waste Water Treatment Assessment services charged to the major program would have required a formal bidding process as the project exceeded the simplified acquisition threshold. The Town had selected the engineering company for “On Call” engineering services as it related to the DPW through a request for qualifications process. The contract does include as part of the services to be provided Waste Water Treatment Assessment services. However, the contract is not specific to federally funded projects. The Town of Medfield had submitted the request for qualifications documentation as well as the executed contracted for “On Call” services to both the Town’s consulting service and the pass through entity for approval of the Waste Water Treatment Assessment. The pass through entity and the pass through entities Auditors did not have any concerns with the request for qualifications as it relates to the Waste Water Treatment Assessment project. Questioned Costs: $40,500 Cause: Based on the judgement of the pass through entity (Norfolk County) and their auditors, the Town was approved to procure engineering services for the Waste Water Treatment Assessment as part of a larger “On Call” services contract. The Town did select the contractor through a competitive request for qualifications process, but did not initiate a separate procurement for the sub-project. Effect or Potential Effect: There is risk that amounts charged to the federal awards major program may not be in accordance with procurement, suspension, and debarment principles. Identification as a Repeat Finding: N/A Recommendation: Going forward, the Town of Medfield should consider a separate bidding process for expenses related to federal grant funds. Responsible for Corrective Plan: Contact Person: Kristine Trierweiler, Town Administrator Estimated Completion Date: April 30th, 2025 Action Taken: On an ongoing basis, the Town will initiate separate procurements for projects covered under federal grants.

2024-002 – Indirect Costs Auditor Description of Condition and Effect. During our testing of indirect cost rates we observed that overhead was included in the Institute's indirect cost rate reimbursement calculation for one out of the Institute's three indirect cost calculations (the general and administrative calculation). As a result of this condition, the Institute did not fully comply with the Uniform Guidance applicable to the above noted grants. Auditor Recommendation. We recommend that the Institute review its policies and procedures in regard to the review of the calculation of indirect costs reimbursement to ensure that it conforms with the approved indirect cost rate and all provisions of the indirect cost rate approved by the Institute's cognizant agency. Corrective Action. Altarum’s indirect rate agreement with the Federal government is a provisional rate agreement, meaning the rates and their bases are not yet finalized. Under FAR Subpart 42.7, Altarum has the flexibility to propose the rates, and their bases provided we comply with the FAR. The following FAR clauses address flexibility:  Indirect Cost Rates: Under FAR 42.703-1, companies must accumulate indirect costs in logical groupings and allocate them using a base that reflects the benefits accruing to cost objectives. This ensures fairness and consistency in cost allocation.  Flexibility: FAR Subpart 42.7 provides flexibility in cost allocation methods, particularly under FAR 42.705 (Final Indirect Cost Rates). This section allows companies to adjust indirect cost allocation methods in response to significant changes in business operations or other relevant circumstances.  Certification: The requirement for contractors to certify their indirect cost proposals is detailed in FAR 42.703-2 (Certificate of Indirect Costs). This ensures compliance with applicable regulations and establishes the validity of the cost proposals. In June 2024, Altarum submitted a certified indirect rate proposal utilizing the total cost input method, excluding subrecipients over $25,000, as the base for our general and administrative (G&A) cost pool. This base was chosen to reflect the benefits accruing to those cost objectives. The accompanying proposed rate Altarum submitted reflected this calculation. Our provisional G&A rate was approved at the percentage that included overhead in our G&A base. However, the narrative in our provisional nonprofit rate agreement did not accurately reflect our proposal, as it inadvertently included the term "total direct costs" when describing the base for the G&A rate. For the fiscal year 2024, Altarum incorporated overhead costs into the base of the associated general and administrative cost rate as certified in our proposal to the Federal government in June 2024. To address the discrepancy between the provisional rate agreement, our proposal, and our system, we sought guidance from our cognizant agent at US Department of Health and Human Services (HHS). In discussions, Altarum was advised to update the allocation base as part of our next proposal package submission, June 2025. Additionally, we were advised that the reviewer from HHS will update the allocation base when finalizing the indirect cost rates for fiscal year 2024. Altarum will follow the advice of HHS and resolve the discrepancies in the rate agreement later this year. Responsible Person. Denise Sturm Anticipated Completion Date. 6/30/2025 – submissions to Federal government; final resolution subject to DHHS's review of our submissions.

Finding #2024-004 – Significant Deficiency and Other Noncompliance. Applicable federal programs: U. S. Department of Health and Human Services, Direct Federal Funding, HIV Prevention Activities Non-Governmental Organizational Based, Assistance Listing #93.939, Contract #6NU62PS924649-03-03, Contract year: 07/01/23 – 06/30/24, Contract #5NU62PS924649-04-00, Contract year: 07/01/24 – 06/30/25. U. S. Department of Health and Human Services, Direct Federal Funding, Cooperative Agreement to Support Navigators in Federally-Facilitated Exchanges, Assistance Listing #93.332, Contract #NAVCA210403-03-03, Contract year: 08/27/23 – 08/26/24, Contract #NAVCA240482-01-00, Contract year: 08/27/24 – 08/26/25. U. S. Department of Health and Human Services, Direct Federal Funding, Children’s Health Insurance Program, Assistance Listing #93.767, Contract #2Y2CMS331859-02-05, Contract year: 07/01/23 – 06/30/25. U. S. Department of Health and Human Services, Passed through Texas Health and Human Services Commission, Block Grants for Prevention and Treatment of Substance Abuse, Assistance Listing #93.959, Contract #HHS000539700204 YPI, Contract year: 09/01/23 – 08/31/24, Contract #HHS000539700204 YPS, Contract year: 09/01/23 – 08/31/24, Contract #HHS000539700204 YPU, Contract year: 09/01/23 – 08/31/24. Condition and context: During our testing of payroll, non-payroll and indirect cost pool transactions, we identified the following exceptions: Controls over allowable cost compliance – all major programs. In a sample of 59 non-payroll transactions tested for internal controls over compliance: One instance of annual advertising contract charged in full rather than establishing a prepaid expense for the eleven months after Civic Heart’s year-end of August 31, 2024. The applicable grant period is July 1, 2023 through June 30, 2025 and thus, only one month, or approximately $417, was outside the period of performance (AL #93.767 Children’s Health Insurance Program). One instance of $2,700 charged to wrong program. Allowable costs of the Navigator program were charged to Connecting Kids program due to coding to the wrong class code in the general ledger. (AL#93.767 Children’s Health Insurance Program (Connecting Kids). In a sample of 135 payroll transactions tested for internal controls over compliance: Four instances of errors in the amount of costs charged to class code due to a clerical error in the payroll allocation spreadsheet. (AL #93.959 Block Grants for Prevention and Treatment of Substance Abuse and AL #93.939 HIV Prevention Activities Non-Governmental Organizational Based). Other non-compliance: AL #93.767 Children’s Health Insurance Program: In a sample of 40 payroll or vendor charges, one instance of non-compliance with allowable cost compliance ($417). AL #93.332 Cooperative Agreement to Support Navigators in Federally-Facilitated Exchanges: In a sample of 42 payroll or vendor charges, one instance of non-compliance with allowable cost compliance ($2,700). AL #93.939 HIV Prevention Activities Non-Governmental Organizational Based: In a sample of 40 payroll or vendor charges, two instances of non-compliance with allowable costs due to charge to the wrong program. Controls over period of performance – all major programs. In a sample of 56 vendor transactions and 4 pay periods with grant beginning or ending dates during the audit period, we found: 13 instances of charging vendor costs to the wrong grant period. One instance of charging payroll costs to the wrong grant period. Other non-compliance: AL #93.332 Cooperative Agreement to Support Navigators in Federally-Facilitated Exchanges: In a sample of 14 vendor charges tested, we found 4 exceptions for charging to the wrong grant period (approximately $3,120). AL #93.939 HIV Prevention Activities Non-Governmental Organizational Based. In a sample of 27 vendor charges tested, we found 4 exceptions for charging to the wrong grant period (approximately $480). In a sample of four pay periods tested, we found one exception for charging costs to the wrong grant period (approximately $5,350). AL# 93.959 Block Grants for Prevention and Treatment of Substance Abuse. In a sample of 25 vendor charges tested, we found 5 exceptions for charging to the wrong grant period (approximately $660). Recommendation: Emphasize adherence to established policies and procedures to ensure maintenance of payroll spreadsheets and reviews of coding for all transactions. Planned corrective action: Adherence to established policies and procedures will be strengthened by providing additional training when onboarding accounting staff, as well as additional oversight to the disbursement and payroll process. New accounting staff will be more thoroughly trained on established policies and procedures, including accruals, proper financial statement period recognition, grant award period of performance, tracking of grant activities using class codes, and allowable cost requirements. In addition, the CFO will ensure sufficient time is dedicated to reconciling payroll spreadsheets, payroll allocations, period of performance, and payroll accruals. Salaries and wages charged to the grant are now based on actual work performed determined by hours submitted by employee and approved by the applicable supervisor; this new control should assist in mitigating posting errors related to incorrect grants and grant periods. Responsible officer: Angelica Castillo, CFO. Estimated completion date: June 30, 2025.

We now have a better understanding of what is considered public works versus equipment. Public Works bids will be let for all items that fall under the Public Works definition. We have since conducted internal training on Public Works definitions.

Corrective Action Plan and Views of Responsible Officials The project was identified in District plans and executed immediately prior to the change in administrative leadership. After review it was noticed that prior capital approval was not obtained prior execution of the project. Applications were subsequently submitted and under review by the CDE at the time of this report preparation. The District acknowledges and has provided professional development with staff, so all are aware of dealing with items that are obtained with federal funds. Pending final answer regarding the prior approval by the CDE will determine the next action of the District.

Management agrees with the finding. Corrections have been made to the tenant file. A refund has been processed.

Management agrees with the finding. Corrections have been made to the tenant file and a refund was processed for the tenant.

Section 811 Capital Advance – Assistance Lising Number: 14.181 Recommendation: We recommend the Project deposit the proper amount monthly and maintain the proper amount in the account. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Regular monthly deposits into the repair and replacement escrow account. Name(s) of the contact person(s) responsible for corrective action: Erik Marsh, CFO Planned completion date for corrective action plan: June 30, 2025