Corrective Action Plans

Name of Auditee: Town of Potsdam, New York Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: Year ended December 31, 2024 CAP Prepared by: Marty Miller, Supervisor Telephone: (315) 265-4310 (A) Current Findings on the Schedule of Findings and Questioned Costs (3) Finding 2024-003 Management’s Response: Management will develop policies and procedures, and anticipates starting and completing the audit more timely in order to meet the required filing deadlines. Persons Responsible for Implementation: Marty Miller, Town Supervisor Implementation Date - December 31, 2026

Finding 2024-001 Allowable Cost Principles and Activities Allowed or Unallowed Material Weakness in Internal Control Over Compliance Assistance Listing Number 21.029 While Wabash currently maintains informal procedures for coding and reviewing invoices and payroll records, we recognize the need for a formalized, written policy governing expenditures charged to federal awards. To address identified material weaknesses, Wabash is committed to implementing a comprehensive written policy by June 30, 2026. This policy will formalize the coding, review, and reporting processes for all federal expenditures. Key improvements will include: • Enhanced Internal Controls: We will establish a clear segregation of duties to ensure oversight and accuracy. • Timely Reporting: We are refining our payroll allocation process. Previously, payroll expenditures were withheld pending budget verification, which occasionally led to reporting delays. New controls will ensure that all expenditures, including payroll, are reported within the required quarterly timeframes. • Monitoring: The Controller will oversee the development of these procedures and remain responsible for ongoing monitoring and compliance. These steps will ensure our financial practices meet federal standards and provide rigorous oversight of project funds. Contact person(s): Cheryl Gaither, Controller Justin Gephart, Chief Operating Officer

Finding 2024-012 - Single Audit Reporting Auditee's Response and Planned Corrective Action The Town will work with the accounting department, fee accountant, and audit fmn to file the required reports timely. Planned Implementation Date of Corrective Action: January 2026 Person Responsible for Corrective Action: Fred Costello, Town Supervisor

CORRECTIVE ACTION: Management is in agreement with the auditor’s recommendations and acknowledges that these issues have continued through our March 31, 2024 and March 31, 2025 fiscal year ends. We continue to make every effort to get our filings up to date by our March 31, 2026 year end due date of December 31, 2026.

CORRECTIVE ACTION PLAN March 13, 2026 Chickahominy Indian Tribe - Eastern Division respectfully submits the following corrective action plan for the year ended December 31, 2024. Name and address of independent public accounting firm: Brown, Edwards & Company, L.L.P. 1909 Financial Drive Harrisonburg, VA 22801 Audit period: December 31, 2024 The findings from the December 31, 2024 Schedule of Findings and Questioned Costs (the "Schedule" ) are discussed below. The findings are numbered consistently with the number assigned in the Schedule. FINDINGS- FINANCIAL STATEMENT AUDIT 2024-001: Payroll Tracking and Allocation (Material Weakness) Condition The client was unable to provide a payroll allocation by fund that agreed to the payroll registers. Criteria Payroll allocations were not supported by adequate documentation and were not consistent with methods used in the prior year. Cause The prior CFO had created an allocation method in which the existing employees could not follow . After the CFO's departure, emailed allo cat ions were sent which only specified which funding source the payroll expendit ures would be paid from, not the fund the expenditures were incurred in. Effect Material audit adjustments were required. Recommendation We recommend that payroll allocations be supported by a logical method and be allocated by fund. Corrective Action The Tribe has implemented corrective actions to strengthen internal controls over payroll allocations including: • Development and implement ation of a standardized payroll allocation model beginning with payrolls processed from September 2024 forward. • Preparation of documented allocation schedules for each pay period reconciling payroll costs to payroll registers and accounting records. • Use of standardized spreadsheet templates to support calculation and documentation of payroll allocations across funding sources . • Direct upload of payroll allocation entries into the accounting system to reduce manual entry and improve reconciliation accuracy. These procedures have established a consistent and supportable methodology for allocating payroll expenditures by fund and maintaining documentation sufficient to support financial reporting and audit requirements. The payroll allocation model was implemented beginning September 2024 and was further refined during 2025. The corrective action is considered implemented. 2024-002: Material Audit Adjustments (Material Weakness) Condition In fiscal year 2022, the Tribe elected to convert from the cash basis of accounting to governmental accrual accounting. During 2024, the Tribe continued to function on a cash basis and did not record most accruals. Criteria Financial information provided shou ld be accessible and materially correct. Cause Tribe has not consistently used the accounting software and has relied on program­ specific spreadsheets. The Tribe did not fully switch to accrual basis for internal reporting. Effect Material audit adjustments were required. Recommendation We recommend that monthly reports be generated from Abila and reviewed for accuracy. Any discrepancies between Abila reports and program-specific spreadsheets should be reconciled or adjusted. These reports should be reliable and able to be used to present to Council as part of monthly financial reporting. Corrective Action The Tribe has taken steps to strengthen the use of the accounting system as the primary source of fi nancial reporting and to improve the reliability of financial reports generated for internal management purposes including: • Continued use of the accounting system (Abila/ M IP) as the system of record for all financial t ransact ions. • Development and implementation of a revised chart of accounts structure to improve financial reporting and fund tracking. • Comprehensive review and correction of historical accounting activity to improve data integrity within the accounting system. • Use of spreadsheets as supplemental tools for monitoring estimated fund balances and grant acti vit y where necessary. • Ongoing efforts to customize financial reports generated direct ly from the accounting system so they align with the reporting format requested by Tribal leadership. The Tribe is currently working to finalize customized accounting system reports that will allow monthly financial reports to be generated directly from the accounting system in the format required for Tribal Council repo rt ing. Substantial improvements were implemented during 2025. Full implement atio n of customized accounting system reporting will be completed in the second quarter of 2026. 2024-003 : Budget Approval and Adherence (Material Weakness) Condition The budget was not approved until February 2024 and did not contain sufficient detail nor was it an accurate reflection of financial operations. Criteria Budgets should be developed with sufficient detail to track organizational performance throughout the year. Budgets should be approved by Council prior to the start of the fiscal year. Cause Unqualified staff or lack of attention to the budgeting process. Effect A budget was approved after the fiscal year and was not measured to actual performance during the year. Recommendation A thorough and detailed budget should be developed at the fund and entity level and adopted by Council prior to the start of the fiscal year. We also recommend Council meetings include a formal discussion of budget to actual results, thus giving Council an opportunity to question variances. Corrective Action The Tribe has taken steps to strengthen its budgeting process and improve financial oversight by Tribal leadership including: • Development of a detailed fiscal year 2025 operating budget at the fund and entity level to improve monitoring of financial activity across funding sources. The FY2025 budget was adopted by Tribal Council on February 8, 2025. • Development of a detailed fiscal year 2026 operating budget at the fund and entity level. This budget was presented to Tribal Council on December 19, 2025 and formally adopted with minor revisions at the January 12, 2026 Council meeting very near the start of the fiscal year. • Implementation of enhanced monthly financial reporting for Tribal leadership to support improved financial monitoring and oversight. • Ongoing development of budget-to-actual comparison reporting to support regular review of financial performance by Tribal Council. Budget development improvements were implement ed during fiscal years 2025 and 2026. Full implementation of budget-to-act ual repo rting will becompleted in the second quarter of 2026. 2024-004: Segregation of Duties (Material Weakness) Condition Certain key financial operational responsibilities are not sufficiently segregated. Criteria Proper segregation of duties shou ld be in place detect of irregulariti es in a timely manner. Cause Small staff size combined with significant turnover. Effect Segregation of duties could not be maintained in several signi fi cant rol es during the year. Recommendation Management should review the current process and implement changes to better separate responsibilities so that no one individual is responsible for a transaction cycle. Where proper segregation is not possible, mitigating controls can be put into place to detect errors. Corrective Action The Tribe recognizes the importance of segregation of duties as an internal control and has taken steps to strengthen oversight and implement mitigating controls where full segregation is not feasible due to staffing limitations including: • Increased oversight of financial transactions and accounting activit y by the Director of Finan ce. • Implementation of improved documentation and reconciliation procedures for key accounting processes. • Development of standardized processes and templates to improve consistency and transparency in financial transactions. • Implementation of enhanced financial reporting to Tribal leadership to support independent review offinancial activity. • Ongoing review of financial responsibilities and workflows to identify opportunities for improved separation of duties as staffing capacity permits. Where complete segregation of duties is not possible due to organizational size, the Tribe will continue to rely on management review and reconciliation procedures as compensating controls that have proven effective in detecting errors and irregularities. Mitigating controls were implemented during late 2024 and throughout 2025 and will continue to be refined as staffing capacity allows. 2024-005: Grant Tracking and Reporting (Material Weakness) Condition Poor financial record keeping and lack of thorough grant expenditure and status tracking. Criteria Grant funding should be recorded in separate GL accounts and be reconciled to any ext ernal spreadsheets or drawdown requests and grant reporting. Cause Turnover and unqualified staff. Effect Some grant funding sources were drawn down without documentation of qualifying expenditures, while others appear to have had qualifying expenditures that did not have matching drawdowns. Recommendation Accounting systems should be properly uti lized to track expenditures incurred under each grant and be reconciled to external reporting and spreadsheets. Once a grant is fully expended, the grant shou ld be closed out by ensuring revenues match expenditures. If expenditures are greater than the revenue provided by the grant, a transfer from the general fund would be needed. If revenues are greater than expendit ures , it could be an indication of improper drawdowns or expenditures have not been properly recorded. Corrective Action The Tribe has taken steps to strengthen grant financial management and improve reconciliation between accounting records, grant expenditures, drawdown activity, and monitoring of fund balances including: • Implementation of a revised chart of accounts structure to improve tracking of grant revenues and expenditures within the accounting system. • Continued use of the accounting system as the system of record for all financial transactions associated with grant programs. • Review and reconstruction of grant financial records to ensure expenditures, drawdow ns, and grant balances are properly documented and reconciled. • Use of standardized tracking spreadsheets as supplemental tools to monitor grant activity and reconcile grant balances to the accounting system. • Implementation of improved financial reporting and reconciliation procedures to ensure grant revenues, expenditures, drawdo wns, and balances are reviewed on a regular basis. Beginning in 2026, the Tribe has established a process to perform grant drawdowns monthly to ensure that drawdowns are aligned with recorded expenditures and that grant balances are monitored on an ongoing basis. Corrective actions began during late 2024 and continued throughout 2025. Monthly grant drawdown and reconciliation procedures were implemented in the first quarter of 2026. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAM AUDIT 2024-006: Bureau of Indian Affairs -105(1) Leases ALN 15.048 and Pandemic Relief Activities: Local Food Purchase Agreements with States, Tribes, and Local Governments ALN 10.182, Late filing of Data Collection Form Condition The Tribe did not file the data collection form for the years ended December 31, 2022, 2023, or 2024 timely. Criteria Under the requirements of the Uniform Guidance and the Office of Management and Budget (0MB), all entities are required to file the annual data collection form with the Federal Audit Clearinghouse the earlier of 30 days after the issuance of the entity's annual audit or nine months after the entity's fiscal year-end. Management did not complete and certify the auditee portion of the form before the deadline. Questioned Cost N/A Repeat Finding Yes RecommendationManagement should take steps to ensure that the form is filed timely Corrective ActionThe Tribe has taken steps to ensure timely completion and submission of the annual data collection form going forward including: • Assignment of responsibility for preparation, review, and submi ssion of the auditee portion of the data collection form to the Director of Finance. • Establishment of a formal process to complete and certify the annual data collection form immediately upon completion of the annual audit. • Implementation of internal tracking procedures to monitor audit timelines and ensure compliance with Federal Audit Clearinghouse submission requirements. • Coordination with external auditors to ensure timely communication regarding audit completion and reporting deadlines. This corrective action has been implemented and the tribe anticipates comp liance in all future audit reporting periods beginning with FY202 5. 2024-007: Bureau of Indian Affairs -105(1) Leases ALN 15.048, Lack of Approvals (Material Weakness) Condition Criteria Cause Questioned Cost Repeat Finding Perspective Information Recommendation Corrective Action There were several instances of lack of approvals for disbursements. Federal grant recipients are required to maintain effective internal controls over federal awards, as out li ned in 2 CFR §200.303. Turnover and inadequate staffing. N/A N/A Nine of 27 tested. All disbursements should have one approval and ensure the expenditure is eligible under the grant. The Tribe has taken steps to strengthen internal controls over disbursement approvals and ensure that all expenditures are properly reviewed and documented including: • Establishment of a standardized disbursement approval process requiring documented approval prior to payment for non-routine/recurring expenditures. • Implementation of procedures to ensure all disbursements are reviewed for allowability under applicable grant requirements before payment is issued. • Maintenance of supporting documentation, including approval evidence, within the accounting records. • Ongoing review of disbursement procedures to ensure compliance with internal control requirements under 2 CFR §200.303. These measures are designed to ensure th at all disbursements are properly authorized, documented, and compliant with applicable grant requirements. Corrective actions began implementation during throughout 2025. These procedures are currently in place and will continue to be refined as part of ongoing internal control improvements. If the Federal Audit Clearinghouse has questions regarding this plan, please call Tim Emery, Director of Finance at 804-488-9392. Respectfully submitted, r Chief

Due in part to delays from the Organization’s prior auditor addressed in the Corrective Action Plan for the June 30, 2023 audit, the 2024 and 2025 audits were significantly delayed. Management has already taken steps to strengthen controls for year-end closing and audit preparation procedures to ensure timely submission of the federal single audit reporting package. These steps included replacing the Chief Financial Officer and engaging an accounting firm to assist with the closing process. Furthermore, the Organization is working quickly to complete the 2025 audit to bring federal reporting fully up to date. Lastly, the Organization is updating its accounting procedures manual to reflect these improved practices.

Management acknowledges that a formalized process to identify and track federal expenditures for SEFA preparation was not in place during the audit period. Steps have since been taken to improve tracking and reporting of federal expenditures throughout the year. With a stable accounting team in place since September 2024, management has increased oversight and accountability for grant coding and federal award identification. Additionally, the implementation of Blackbaud Financial Edge in FY2027 will allow for more precise tracking of funding sources, including the ability to segment federal and non-federal expenditures within programs and generate SEFA-ready reports. These improvements will enable the Organization to prepare a complete and accurate SEFA prior to the start of future audits and ensure compliance with Uniform Guidance requirements. Actions Taken - Established internal processes to identify and track federal expenditures throughout the fiscal year - Increased review procedures over grant coding and funding source classification - Assigned responsibility for SEFA preparation and review prior to audit fieldwork - Initiated implementation of Blackbaud Financial Edge to automate and enhance federal reporting capabilities

CONTACT PERSON: A. Nicole Verner, Finance Director, averner@cityoflakecity.org CORRECTIVE ACTION: The City acknowledges the finding regarding the failure to submit the required Coronavirus State and Local Fiscal Recovery Funds compliance report by the established deadline. Management recognizes that staffing changes contributed to a breakdown in tracking and fulfilling grant reporting requirements. To address this finding, the City is implementing enhanced grant management and compliance procedures to ensure all reporting requirements are met in a timely manner. The City will develop and maintain a centralized grants management schedule that identifies all reporting requirements, including due dates, responsible parties, and submission procedures for each grant. This schedule will be monitored regularly by management to ensure compliance. Responsibility for grant reporting will be clearly assigned to qualified personnel, and a secondary reviewer will be designated to verify that all required reports are completed accurately and submitted on time. The City will implement a formal review and approval process for all grant reports prior to submission to ensure completeness and compliance with applicable requirements. In addition, the City will establish reminder and tracking mechanisms, including calendar alerts and periodic status reviews, to prevent missed deadlines. The City will also provide training to staff responsible for grant administration to ensure a clear understanding of compliance and reporting requirements associated with federal and state funding. Management will monitor compliance with all grant reporting requirements and will take corrective action promptly if any issues are identified. PROPOSED COMPLETION DATE: June 30, 2027

Management acknowledges the finding and recognizes that the Single Audit reporting package for the fiscal year ended June 30, 2024 was not submitted to the Federal Audit Clearinghouse within the deadline established by Uniform Guidance. Management recognizes that the delayed filing resulted primarily from the extended year-end financial closing process, timing of reconciliations and adjustments, limited accounting resources, and the additional time required to compile and finalize supporting grant documentation associated with the FEMA Public Assistance program. Management acknowledges the finding and recognizes that the Single Audit reporting package for the fiscal year ended June 30, 2024 was not submitted to the Federal Audit Clearinghouse within the deadline established by Uniform Guidance. Management recognizes that the delayed filing resulted primarily from the extended year-end financial closing process, timing of reconciliations and adjustments, limited accounting resources, and the additional time required to compile and finalize supporting grant documentation associated with the FEMA Public Assistance program. The Company has implemented and initiated corrective measures designed to improve the timeliness and efficiency of future audit reporting processes, including: Establishment of formal year-end closing schedules and internal reporting deadlines; Earlier preparation and review of audit schedules and supporting documentation; Improved coordination between accounting personnel, grant administrators, and external auditors; Enhancement of interim reconciliation and financial reporting procedures throughout the year; Evaluation of staffing and external support needs to strengthen the financial reporting process. Management believes these corrective actions will improve the efficiency of the audit process and help ensure timely completion and submission of future Single Audit reporting packages in accordance with federal requirements.

Management acknowledges the finding and recognizes that the year-end financial closing and reconciliation process was not completed within the desired timeframe during the audit period. The delays were primarily attributable to limited staffing resources within the finance and accounting department and the concentration of significant accounting and reporting responsibilities among limited personnel. Management notes, however, that the Company maintains its accounting records in an integrated accounting system capable of supporting timely financial reporting and that transactions are substantially recorded, classified, reconciled, and segregated by fund and grant throughout the year. In addition, all material adjustments and reconciliations were ultimately completed as part of the audit and financial reporting process. To address this matter, management has implemented and continues to enhance several corrective measures designed to improve the timeliness, efficiency, and overall effectiveness of the financial reporting and closing process, including: Strengthening internal accounting procedures and closing processes; Implementing enhanced monthly and year-end reconciliation procedures; Redistributing and segregating accounting responsibilities to the extent practicable; Increasing the use of the accounting system’s reporting and reconciliation capabilities; Establishing internal timelines and schedules for interim and annual closing procedures; Evaluating additional accounting and administrative support resources. Management will continue working to further strengthen the financial reporting process and improve the timeliness of future financial closings and related reporting requirements.

Concerning Finding 2024-002 Reporting Contact Person Responsible for Corrective Action: William Dobbins, Superintendent Corrective Action: The Limestone Public Schools will take the following actions to address finding 2024-002: Limestone Community School will strengthen internal controls over federal reporting to ensure all required reports are completed, submitted timely, and properly retained. The school will develop written procedures outlining reporting requirements for all federal programs, including ESSER (ALN 84.425). These procedures will identify responsible personnel, submission deadlines, and documentation retention requirements. Copies of all submitted federal reports, including Annual Performance Reports and Annual Performance and Expenditure Reports will be saved electronically and maintained in a centralized grant compliance file. The School will also maintain documentation confirming submission, such as submission receipts or screenshots from the online reporting system."Please note, all Invoices, and back up materials were available along with the draft of the final report. The final report was not obtainable due to the web page being closed. Also, the audit was competed half way through FY-26." Anticipated Completion Date: February 2, 2026

Description of Finding: The Organization submitted its Audited Financial Statements and Single Audit report to the federal clearing house in May 2026, eight months after it was due. Statement of Concurrence or Nonconcurrence: The Organization concurs with this finding. In 2025, the Organization hired a new accounting firm with a firm commitment to system integration to improve efficiency in month-end and year-end close, as well as upgrades to its time keeping and payroll system that allows for real time posting of allocated time directly to the accounting software. In prior years, this was a manual process. This automation will eliminate the lag time in posting payroll allocations to the general ledger and greatly reduce the end of year closing process timeline. David Heitstuman, Chief Executive Officer, Phone 916 442-0185, email David.heitsuman@sacccenter.org

Finding 2024-001: Preparation of the Schedule of Expenditures of Federal Awards - Significant Deficiency in Internal Control Over Compliance Program: U.S. Department of Health and Human Services – Medicaid Cluster Management acknowledges the omission of PATH CITED expenditures from the SEFA for the year ended June 30, 2024. Management notes that the federal nature of the PATH CITED program was not identified in the original grant documentation or publicly available information provided by DHCS at the time the funding was awarded. Upon confirmation in 2025 that the program includes federal pass-through funding, the Organization worked to restate the SEFA and include the appropriate federal expenditures. To strengthen internal controls going forward, management has implemented procedures requiring review of funding agreements for federal funding indicators, maintaining a centralized register of federal awards to support SEFA preparation, and obtaining confirmation from funding agencies when the federal status of a program is unclear. Anticipated Completion Date: by June 30, 2026 Responsible Person: Virginia Lui VP, Controller

CONTACT PERSON: Mandy Hess, Finance Director, mhess@pickenscity.com CORRECTIVE ACTION: The City has implemented procedures to ensure that amounts reported for grant reporting amounts are accurate and are consistent with the City’s general ledger. PROPOSED COMPLETION DATE: December 31, 2026

2024-005 REPORTING - SIGNIFICANT DEFICIENCY Federal Program Education Stabilization Fund - U.S. Department of Education passed through the Pennsylvania Department of Education COVID-19 - Elementary and Secondary School Emergency Relief Fund (ARP ESSER) ALN 84.425U; Contract #223-21-0141; Grant Period 03/13/20 - 09/30/24 COVID-19 - ARP ESSER Learning Loss Set Aside ALN 84.425U; Contract #225-21-0141; Grant Period 03/13/20 - 09/30/24 Criteria The District is required to submit an annual performance report to the Commonwealth of Pennsylvania (the “State”) with data on expenditures, planned expenditures, subrecipients, and uses of funds, including for mandatory reservations. Condition During the year ended June 30, 2024, the District submitted a report for the funds used during the year ended June 30, 2023. The report submitted by the District contained expenditure amounts that did not agree to the amounts reported on the schedule of expenditures of federal awards for the year ended June 30, 2023 as well as other key reporting line items. Recommendation We recommend the District keep a reconciliation of grant awards available to expenditure incurred. The accurate use of funding source codes will assist in that process. We also recommend the District continue working toward more timely financial and compliance audits. Management Response When the district received the audit, the 2023 federal reports were already submitted. The District made the adjustments for non-allowable expenses in the 2023 SEFA and took out the non-allowable in the 2024 State reports. The District has begun using and reconciling funding source codes related to grants more timely.

Management will file the audited financial statements for the year ended June 30, 2024, as soon as possible. The underlying causes included prolonged resource constraints within the Finance Department, turnover in key accounting positions, challenges associated with the ERP system implementation, and delays in reconciling certain major balance sheet accounts. To address these issues, the City engaged an external financial consultant to assist in completing outstanding bank reconciliations and restoring timely financial reporting. Management is also implementing additional corrective measures, including reprioritizing workloads, enhancing oversight of monthly close activities, and establishing standardized reconciliation checklists for all major balance sheet accounts. Management anticipates that this finding will extend through the Fiscal Year 2025, and possibly Fiscal Year 2026 financial statement reporting cycles, with full resolution expected in Fiscal Year 2027.

The Creek County Clerk’s Office will work with the SEFA preparer to ensure that the correct paid dates are being used when reporting. This should eliminate the actual expenditures differences. We will work to educate all offices involved in the reporting process on financial statement and SEFA.

2024-001 – Data Collection Forms Finding: Our audit procedures noted Alliance for Rights and Recovery, Inc. did not certify or submit the required Data Collection Form for the fiscal year ended December 31, 2023 related to the 2023 Single Audit. As of the date of our 2024 audit, the Data Collection Form and accompanying reporting package remain unsubmitted. Recommendation: We recommend that the organization implement procedures to ensure the timely preparation, certification, and submission of the annual Data Collection Form and reporting package. This should include assigning responsibility for tracking deadlines, establishing a completion checklist, and documenting management review prior to submission. Action Taken: The Agency will assign the CFO the responsibility of reviewing all 9melines and documents needed for the annual audit.

Name of Contact Person: Willow Hetrick-Price Corrective Action Planned: Due to turnover of the Commission's accounting staff, the Commission was unable to have the annual audit completed within the required timeframe, and subsequently was also late in submission of the FAC report. The Commission has hired internal staff to help with the audit preparation and contracted with an accounting firm that has provided the Commission a CPA to conduct audit preparation and other financial services as requested. The Commission will work on getting financial information in a timely fashion and submit the reporting package in accordance with the guidelines. Anticipated completion date: September 30, 2026.

While the Authority continues to be delinquent on the current year audit completion, a consulting firm was hired to assist with bringing records up to date. The Authority also had hired an assistant fiscal officer in the fall of 2021 and another assistant fiscal officer in the fall of 2022. As a result of the hiring, job responsibilities have been re-assigned and data gathering for future audits will occur in a timely manner. Accounts have been reconciled through December 31, 2025 prior to the 2024 audit commencing. The Authority will continue to execute their plan to have the audits completed on a timely basis and expects to submit the audited financial statements and single audit reporting package for the year ended December 31, 2025 to the Federal Audit Clearinghouse timely.

The Authority implemented a new policy to track and document program income: a. Upon receipt of program income, it shall be entered individually into IDIS and assigned to an activity or activities within fifteen (15) calendar days of receipt. b. At the next request for funds for an activity which includes funding from program income, program income shall be used prior to requesting federal funds for the activity. c. The request for federal funds shall be prepared by the Fiscal Officer and reviewed by one of the Assistant Fiscal Officers to determine if program income is being used prior to the request of federal funds. d. If it has been determined and documented that program income is being used prior to the request for federal funds, the request shall be forwarded to the Executive Director for approval. This finding has since been resolved in 2025, with a new policy developed and implemented on April 1, 2025.

In general, management agrees with the finding. It should be noted that internal controls for supervisory review of reporting requirements were in place but were not written controls or processes. Reporting for the CDBG Program is accomplished through the preparation of the annual Comprehensive Annual Performance and Evaluation Report (CAPER). Written policies and procedures for the CAPER have been developed. Reporting for the Emergency Rental Assistance Program is accomplished through an online reporting system of the U.S. Treasury and by email to the Pennsylvania Human Services Department. This finding has since been resolved in 2025, with a new policy developed and implemented on December 12, 2025.

Finding 2024-002 Late Reporting and Noncompliance with Reporting Requirements Name of Contact Person: Cindy Sharp, Deputy Finance Director Corrective Action Plan: Management has hired a new finance director with governmental accounting experience, as well as an accountant (a licensed CPA in Colorado) with a long history of governmental auditing and accounting experience. Management, together with experienced accounting staff, will review reporting deadlines and work diligently toward timely report submissions in the future. Management and accounting staff will also carefully review reporting requirements and ensure that requirements are adhered to. This includes the following program(s): Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) / ARPA Non-Profit Recovery Funds (NPRF) (ALN 21.027). Proposed Completion Date: Fiscal year 2025.

Response: Management agrees with the finding and will work to assure that the 2025 audit is submitted to the Federal Audit Clearinghouse by the due date of September 30, 2026. Responsible Party: Ann Rogers, Chief Executive Officer Estimated Completion Date: September 30, 2026

Auditor’s recommendation: The Organization’s internal control over financial reporting should be modified to present financial statements in accordance with US GAAP through reduction in audit adjusting journal entries and improve the timing of the six-month period end closing process. Auditee’s response: The Organization is continuing to develop effective internal controls over financial reporting to ensure that financial statements are prepared in accordance with US GAAP on a timely basis.