Corrective Action Plans

Finding 2025-004: Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157 Anticipated Completion Date: June 11, 2026 Recommendation: It was recommended the related parties reimburse Sessions Village 202 for the expenditures paid on their behalf. In addition, it was recommended management review the disbursements made during the periods of turnover to confirm there were no other unallowable payments made. It was also recommended management of Sessions Village 202 review their internal controls over the cash disbursement process with the necessary individuals involved in the process to ensure the controls are consistently performed going forward. Action Taken: The related parties reimbursed Sessions Village 202 for the expenditures paid on their behalf. Since the new accounts payable clerk started in the Summer of 2025, they have been reviewing all of the supporting documentation for disbursements made during the period of turnover, and accumulating any additional corrections that need to be made. They will continue this process for all disbursements from the period of turnover. The Executive Director/Administrator and Accountant at the management agent will review the process and procedures in place with the new accounts payable clerk, and implement controls to ensure the appropriate facility and general ledger account coding are made going forward. In addition, they will review the review and monitoring controls in place and revise as needed to ensure the proper checks are in place to catch errors.

Finding Number: 2025-001 Condition: Management concurs with the finding and has implemented a new grant governance committee and process for identifying grant components before entering into grant agreements. Management also created a new grant department with staff devoted to researching, applying for, monitoring, and reporting on all grants. The accounting function for grants will be done by this team as well but with continued oversight by the Executive Director, Accounting. Contact person responsible for corrective action: Stephanie Sessoms, Chief Financial Officer; Lynn Bailey, Executive Director, Accounting Anticipated Completion Date: 1/12/2026

Finding Number: 2025-002 Planned Corrective Action: We concur with the finding. We will continue to monitor our federal grant cash requirements and seek additional cash flow when governmental environment changes. The Finance Administrator will continue to monitor cash flow requirements to mitigate cash advances to ensure timely federal grant cash remittance policies are being followed. Anticipated Completion Date: On-going Responsible Contact Person: Cynthia Diaz, Finance Administrator

Saginaw-Shiawassee Habitat for Humanity respectfully submits the following corrective action plan for the year ended September 30, 2025. Auditor: Maner Costerisan 2425 E. Grand River Ave., Suite 1 Lansing, MI 48912 Audit Period: The finding from the September 30, 2025 schedule of findings and questioned costs is discussed below. The finding is numbered consistently witht eh number assigned in the schedule. Finding - Federal audit Finding 2025-001 - Material Weakness Reccommendation: Saginaw-Shiawassee Habitat for Humanity prepare required written policies and procedures that are promulgated by 2 CFR 200. Action to be taken: Saginaw-Shiawassee Habitat for Humanity concurs with the finding and acknowledges that formal written federal policies and procedures required under Uniform Guidance were not fully documented during the audit period. The Organization has begun developing and implementing written policies and procedures related to - Allowability of costs chargedd to federal awards - Procurement and bidding procedures - Compensaztion and payroll allocation procedures - Federal grant compliance and documentation standards Management is working in consultation with its auditor and grant partners, as appropriate, to ensure policies align with Uniform Guidance requirements for 2 CFR 200. In addition to policy development, the Organization will: - Review and fformally adopt policies through leadershiop and governance process - Train applicable staff on federal compoliance requirements and governance processes - Maintain centralized documentation related to fedderal grant compliance and procurement activities - Incorporate periodic internal reviews to ensure continued compliance with fedderal requirements

Finding Reference Number: 2025-03 View of Responsible Official and Planned Corrective Action Date: Corrective Action: The Finance Director has created additional cost centers for specific federal awards within the financial management system. FY26 YTD expenditures related to the specific grants will be reviewed and re-allocated. All future expenditures will be coded at the time costs are incurred. Name of Contact Person: Susan Phelps, Finance Director Projected Completion Date: September 30, 2026

Finding Reference Number: 2025-01 View of Responsible Official and Planned Corrective Action Date: Corrective Action: The Finance Director has created additional cost centers for specific federal awards within the financial management system. FY26 YTD expenditures related to the specific grants will be reviewed and re-allocated. All future expenditures for the specific grants will be coded at the time costs are incurred. Name of Contact Person: Susan Phelps, Finance Director Projected Completion Date: September 30, 2026

The Homeland Security and Emergency Management Agency (HSEMA) agrees with the conditions and recommendations of this finding. From PSJC’s perspective, this finding includes prior year (FY2020) approved expenditures not reported in FY2025 SF-425. We believe there was a transparency gap, as the discrepancies between the SF-425 reports and the SEFA expenditure totals should have been identified, disclosed and brought to our attention in prior audit engagements. Overall, we concur with the findings. The SEFA was adjusted in fiscal 2020 for expenditures that were not approved, however we did not capture the approved expenditures in the following years on SF425. Management will ensure that SEFA expenditure and SF 425 cash disbursements are aligned. We will perform first and second level review of the SF425 and SEFA. Management also concurs with the fact that the subrecipient passthrough on the SEFA should be non-district agencies. We will review the SEFA and report only non-district agencies as pass through to subrecipients.

DC Government Operations is committed to full compliance going forward and has developed the following corrective action plan in coordination with the Office of the Chief Financial Officer. Step 1 — Retroactive Completion of FY2025 SF-425 The DC Government Operations Grants Management Specialist, in coordination with the OCFO, will compile all required financial data and complete the SF-425 Federal Financial Report for the fiscal year ended 30 Sept 2025. This includes reconciling cumulative expenditures against federal award records, ensuring all figures are supported by source documentation, and obtaining supervisory review and Director approval prior to submission. Target completion: September 2026. Step 2 — Assignment of Ongoing Reporting Responsibility The Grants Management Specialist is hereby designated as the party responsible for the preparation and timely submission of the SF-425 for all active cooperative agreements within DC Government Operations. The OCFO will provide technical review and certification before each submission. This assignment will be documented in writing and reflected in updated position responsibilities. Step 3 — Update of the Existing Reporting Calendar DC Government Operations maintains an existing Cooperative Agreement Grants reporting calendar that will be updated to incorporate all SF-425 submission deadlines for each active award. The calendar will include 90-day, 60-day, and 30-day advance notification triggers assigned to the Grants Management Specialist, with escalation to the CAO and Director if deadlines are at risk. The updated calendar will be reviewed and approved by the Director no later than July 31, 2026. Step 4 — Development of a Standard Operating Procedure The Grants Management Specialist will develop a written SOP governing the end-to-end SF-425 process, to include: data gathering from OCFO, reconciliation against billing authorizations, supervisory review, Director approval, submission to the federal awarding agency, and retention of submission confirmation as audit evidence. The SOP will be reviewed by the CAO, finalized, and placed into the DC Government Operations grants compliance library no later than August 31, 2026. Step 5 — Coordination with GOR and USPFO DC Government Operations will initiate a formal coordination meeting with the Grants Officer Representative and the U.S. Property and Fiscal Officer to align on all federal reporting requirements under the cooperative agreement going forward. This meeting will produce a shared reporting expectations document to ensure all parties are operating from the same compliance framework. Target: July 2026.

DC Government Operations (DCGO) concurs with this finding and acknowledges the deficiencies identified during the audit period. The corrective action plan below assigns responsibility accordingly and includes a designated section for OCFO’s response. Condition 1 — DCGO will establish a formal monthly drawdown coordination meeting between the Grants Management Specialist and the OCFO to align on report readiness and submission timelines. DCGO will also update its grants reporting calendar to include monthly SF-270 submission deadlines with 30-day and 15-day advance triggers. The Grants Management Specialist will track submission status in real time and escalate to the CAO when deadlines are at risk. Condition 2 — DCGO will implement a monthly grant activity checklist requiring the Grants Management Specialist to confirm that all active awards, including the Facility Sustainment Restoration Modernization project, are represented in each drawdown cycle. Any award with no drawdown activity will require documented justification reviewed by the CAO before the cycle closes. Condition 3 — This condition is squarely within the DCGO lane, and we take full accountability. Effective immediately, the following controls will be implemented: The Grants Management Specialist will route every SF-270 through a documented approval workflow requiring CAO review and Director signature before submission. No SF-270 will be submitted to the GOR or USPFO without confirmed Director approval on record. Upon submission, the Grants Management Specialist will retain timestamped confirmation of submission, via DC Gov BOX, as permanent audit evidence in the grants compliance file. The DCGO SOP governing SF-270 preparation and routing will be updated to codify these steps no later than August 31, 2026. Condition 4 — DCGO will implement a pre-submission reconciliation checkpoint requiring the Grants Management Specialist to perform a line-by-line comparison between the billing authorization worksheet and the corresponding SF-270 before routing for Director approval. Any variance must be documented, explained, and resolved prior to submission. This reconciliation step will be captured as a required sign-off in the updated SOP. Condition 5 — DCGO will require that every SF-270 be traceable to an approved billing authorization worksheet before processing. The Grants Management Specialist will maintain a master award register cross-referencing all active grants against billing authorizations each cycle. Any SF-270 that cannot be matched to an authorized billing entry will be flagged and held pending resolution with Cooperative Agreement Program Manager (CAPM) and Director review. Condition 6 — DCGO will establish a cash receipt tracking log maintained by the Grants Management Specialist. Following each SF-270 submission, the GMS will monitor federal payment confirmation and document receipt in the log within 5 business days of funds being received. Unconfirmed receipts beyond 30 days of submission will be escalated to the CAO for follow-up with the GOR and USPFO.

Child Nutrition Cluster – Assistance Listing No. 10.CNC Recommendation: We recommend the District implement a formal process requiring documented evidence of review and approval of all reimbursement requests prior to submission, such as dated sign-offs or electronic approval records, to strengthen internal controls and ensure compliance with Federal requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The District will provide formal documentation by reviewing and signing the claims for approval of reimbursement requests before submission to the state. Name(s) of the contact person(s) responsible for corrective action: Stacy Rodriguez Director of Finance Planned completion date for corrective action plan: September 2025

Cash Management Moving to Work Demonstration Program AL No. 14.881 Other matter required to be reported in accordance with 2 CFR 200.516(a) Condition: Out of the 66 grant drawdowns during the year, 19 drawdowns were tested and it was noted that 1 of the drawdowns was made in advance of the supporting invoices being paid to the vendors and subsequently the invoices were not paid within three business days, as required. Auditor’s Recommendations: The Agency should continue to develop and implement internal controls over grant management to coordinate capital fund draws with the timing of invoice payments. Action Taken: Action Due Date Responsible Person This finding occurred prior to the staff receiving the results of the previous audit. There have been no additional invoice payments outside of the 3-day allowable time. Staff developed and implemented an internal tracking document to ensure payments are made within three days of the draw. Complete – May 2025 Accounting Technician, Kary Smith, Lauren Hodgens and Ryan Bates

Item 2025.003 - Cash Management Recommendation The Organization should develop written procedures to review all drawdowns that occur in order to ensure accuracy. Repeat Finding Not a repeat finding. Action Taken The Health Center has engaged Cambire Consulting, a grant and contracts consulting firm. A drawdown policy will be established for the July 2026 Board Meeting for approval.

The Director of Grants will continue to prepare the reports and then the Superintendent and Corporation Treasurer will review and sign off on the reports to ensure they agree to the underlying details. The Director of Grants will make sure this is done in a timely manner to comply with the reporting deadlines for each fiscal year.

Classification Material Weakness Responsible Official Chief Financial Officer Anticipated Completion Date December 31, 2026 Management Response Management concurs with the finding. OIC will formalize federal award tracking and SEFA preparation procedures to ensure federal expenditures are complete, accurate, and readily identifiable by program. Corrective Action Plan 1. Assign grant codes and Assistance Listing Number identifiers within the accounting system to track federal expenditures by award, funding source, and program. 2. Prepare quarterly SEFA reconciliations to the general ledger, grant records, reimbursement requests, and supporting documentation. 3. Incorporate a SEFA preparation checklist into year-end closing procedures and submit the draft SEFA to the Audit Committee before audit fieldwork. Management will monitor corrective action progress and provide periodic updates to executive leadership, the Finance Committee, Audit Committee, and Board of Directors until all findings are remediated. Management believes these actions will strengthen internal controls, improve audit readiness, and reduce the risk of future findings.

Classification Material Weakness Responsible Official Chief Financial Officer and Chief Health Operations Officer Anticipated Completion Date March 31, 2027 Management Response Management concurs with the finding. OIC will strengthen revenue cycle controls to improve patient service revenue recognition, accounts receivable valuation, write-off governance, and billing system reconciliations. Corrective Action Plan 1. Transition from a flat encounter-based revenue estimate to a net realizable value methodology that incorporates contractual allowances, sliding fee discounts, implicit price concessions, and allowance for doubtful accounts. 2. Perform monthly documented reconciliations between EPIC, eClinicalWorks, Sage MIP, patient receivables, gross charges, adjustments, collections, write-offs, and general ledger balances. 3. Require documented management review and approval of accounts receivable aging, collectability analyses, write-offs impacting the general ledger, and revenue cycle dashboard reporting.

Classification Significant Deficiency Responsible Official Chief Financial Officer Anticipated Completion Date June 30, 2027 Management Response Management concurs with the finding. OIC experienced turnover in key finance positions, delayed year-end close activities, and documentation challenges during the auditor transition; management will strengthen close, documentation, and audit readiness controls. Corrective Action Plan 1. Implement a documented monthly and year-end close process with defined deadlines, assigned responsibilities, balance sheet reconciliations, and documented supervisory review. 2. Maintain audit-ready support for material balances, including fixed assets, leases, beginning balances, federal awards, and other significant accounts in a centralized electronic repository. 3. Develop personnel and auditor transition procedures, including desk procedures, PBC checklists, training, and quarterly status reporting to the Finance Committee and Audit Committee.

Finding Number: 2025-002 Finding Name: Allowable Costs Finding Condition(s): During testing of allowable costs, we identified shared payroll and other costs charged to federal programs for which adequate support for the cost allocation methodology was not maintained. Specifically, allocation schedules and underlying documentation supporting how payroll allocation percentages were determined were incomplete or unavailable. As a result, we were unable to conclude that all sampled costs were allocated to the federal programs in proportion to the relative benefit received. Name of Contact Person(s): Mark Yates, Interim CFO, 312-479-5395 Corrective Action(s): Management will retain detailed allocation support and maintain its allocation methodology in accordance with applicable requirements. This documentation will be preserved to support the development and implementation of the management corrective action plan and to demonstrate consistency and compliance going forward. Anticipated Completion Date: May 31, 2026. Management agrees with the finding. The issue resulted from a system conversion and transition between payroll providers. Moving forward, management will ensure that appropriate documentation is consistently maintained and retained to support all payroll-related transactions.

Utilize the snack count option within the Payschools program to obtain accurate counts. Cafeteria manager will go over the numbers before certifying for submission.

Audit Finding 2025-002 in the area of Reporting An Authority official has been designated to develop and implement standardized processes and record-keeping procedures to ensure that all relevant divisions are informed of grant applications, award terms and conditions, financial responsibilities, and reporting requirements. The Finance Division will continue to provide monthly expenditure reports to assigned grant personnel to support ongoing monitoring, reconciliation, and timely reporting. In addition, a supervisory review will be conducted by the Controller, Assistant Chief Financial Officer, or Chief Financial Officer to verify the completeness, accuracy, and compliance of all submitted financial and programmatic reports. Furthermore, relevant personnel will be notified of and encouraged to participate in grants management training to enhance their understanding of reporting requirements, internal controls, and compliance obligations.

Project NOW, Inc. submits the following corrective action plan for the identified finding for the audit period July 1, 2024 through June 30, 2025. 2025-001 - Delinquent Audit Submission, Audit Preparedness, Timely Reconciliations and Material Adjustments Corrective Action: Lack of audit preparedness, reconciliations not done or not completed timely, and material adjustments either not completed properly and accurately or just not done at all were the cause and the reason for the delinquent audit submission. The Accounting Manager and one Grant Accountant left the organization early to mid FY2025. The CFO then decided to scale back her work hours before eventually leaving the organization prior to completing her agreed upon task of preparing the organization for the audit. The new CFO was hired in September 2025, and a temp Grant Accountant was hired full time in November 2025. Instead of replacing the Accounting Manager, a third Grant Accountant was brought in as a temp in February 2026 and will be hired full time in June 2026. Steps in the Corrective Action Process: Train and Crosstrain Finance Staff and Grant Accountants: Upon the new CFO's arrival, many of the duties for grant reporting as well as the majority of the month-end closing entries fell under one grant accountant. Some duties were delegated to the temp grant accountant, but a majority of the workload still fell to the other accountant. We will make sure that each grant accountant is trained on the grants they are responsible for as well as cross trained on other grants so grant reporting obligations do not go undone in the absence of one accountant. Person(s) Responsible: Steve Morenz, CFO Timing for Implementation: Current and ongoing Training the Accounting Staff in month end closing entries and the handling of material acquisitions and disposals: It was found during the audit that a new agency acquisition was not added to Project NOW's books properly, a new LLC had not been properly set up in the accounting system, and the sale of houses and the sale of vehicles were not handled correctly. The CFO will monitor such activities and make sure the proper accounting for such transactions is completed in the accounting system either at the time of sale or time of acquisition. Person(s) Responsible: Steve Morenz, CFO Timing for Implementation: Current and ongoing Returning to and following a strict month end closing schedule, having the books closed by the 15th of each month: At one point, from the last corrective action plan to this one, the Finance staff was current with their month end closings. But with the transitions that occurred they had again fallen behind, and at one point being up to six months behind in closing the months. With a fully trained Finance department, starting in January 2026 we were able to close two months during each calendar month and were current with our statement's closings by March 2026. The staff will work diligently to maintain this schedule. This will also help ensure grant reporting is done on a timely basis as well. Person(s) Responsible: Steve Morenz, CFO Timing for Implementation: Current and ongoing Balance Sheet Account Review and Reconciliation: Apparently other than monthly bank reconciliations, there has been no balance sheet account review done for quite some time. Moving forward, the CFO will work with the accounting staff to see that reconciliations of all balance sheet accounts for all entities will be done regularly and correctly so we are better prepared for audit season. Person(s) Responsible: Steve Morenz, CFO Timing for Implementation: Current and ongoing Monthly departmental revenue and expense reports distributed to each director by the 20th of each month: Again, prior to the latest staffing transitions, R&E reports were sent to department directors every month. This practice then fell by the wayside. We have re-implemented the distribution of month financial reports to all directors showing all revenues and expenses for the departments they manage and the grants they are responsible for. Regular meetings will be held between the CFO, specific grant accountant, and the directors to review their statements to see how their department is running and their compare financial results versus their budget. This will also help monitor activity on the organization's income statement, making sure those balances are accurate and complete. Project NOW, Inc. submits the following corrective action plan for the identified finding for the audit period July 1, 2024 through June 30, 2025. 2025-001 - Delinquent Audit Submission, Audit Preparedness, Timely Reconciliations and Material Adjustments Corrective Action: Lack of audit preparedness, reconciliations not done or not completed timely, and material adjustments either not completed properly and accurately or just not done at all were the cause and the reason for the delinquent audit submission. The Accounting Manager and one Grant Accountant left the organization early to mid FY2025. The CFO then decided to scale back her work hours before eventually leaving the organization prior to completing her agreed upon task of preparing the organization for the audit. The new CFO was hired in September 2025, and a temp Grant Accountant was hired full time in November 2025. Instead of replacing the Accounting Manager, a third Grant Accountant was brought in as a temp in February 2026 and will be hired full time in June 2026. Steps in the Corrective Action Process: Train and Crosstrain Finance Staff and Grant Accountants: Upon the new CFO's arrival, many of the duties for grant reporting as well as the majority of the month-end closing entries fell under one grant accountant. Some duties were delegated to the temp grant accountant, but a majority of the workload still fell to the other accountant. We will make sure that each grant accountant is trained on the grants they are responsible for as well as cross trained on other grants so grant reporting obligations do not go undone in the absence of one accountant. Person(s) Responsible: Steve Morenz, CFO Timing for Implementation: Current and ongoing Training the Accounting Staff in month end closing entries and the handling of material acquisitions and disposals: It was found during the audit that a new agency acquisition was not added to Project NOW's books properly, a new LLC had not been properly set up in the accounting system, and the sale of houses and the sale of vehicles were not handled correctly. The CFO will monitor such activities and make sure the proper accounting for such transactions is completed in the accounting system either at the time of sale or time of acquisition. Timing for Implementation: Current and ongoing Returning to and following a strict month end closing schedule, having the books closed by the 15th of each month: At one point, from the last corrective action plan to this one, the Finance staff was current with their month end closings. But with the transitions that occurred they had again fallen behind, and at one point being up to six months behind in closing the months. With a fully trained Finance department, starting in January 2026 we were able to close two months during each calendar month and were current with our statement's closings by March 2026. The staff will work diligently to maintain this schedule. This will also help ensure grant reporting is done on a timely basis as well. Person(s) Responsible: Steve Morenz, CFO Timing for Implementation: Current and ongoing Balance Sheet Account Review and Reconciliation: Apparently other than monthly bank reconciliations, there has been no balance sheet account review done for quite some time. Moving forward, the CFO will work with the accounting staff to see that reconciliations of all balance sheet accounts for all entities will be done regularly and correctly so we are better prepared for audit season. Person(s) Responsible: Steve Morenz, CFO Timing for Implementation: Current and ongoing Monthly departmental revenue and expense reports distributed to each director by the 20th of each month: Again, prior to the latest staffing transitions, R&E reports were sent to department directors every month. This practice then fell by the wayside. We have re-implemented the distribution of month financial reports to all directors showing all revenues and expenses for the departments they manage and the grants they are responsible for. Regular meetings will be held between the CFO, specific grant accountant, and the directors to review their statements to see how their department is running and their compare financial results versus their budget. This will also help monitor activity on the organization's income statement, making sure those balances are accurate and complete. Person(s) Responsible: Steve Morenz, CFO Timing for Implementation: Current and ongoing Person(s) Responsible: Steve Morenz, CFO

As noted, the Program was taken over by State subsequent to year end, and all employees that ran the program are no longer with the Organization. While we did maintain copies of records, accessibility with current staff is difficult and we expected the State would provide us with previous documentation transitioned to them which, unfortunately, they have not. Going forward if any programs are terminated we will make sure previous documentation is maintained, categorized and current staff are able to access any records easily.

Complete reconciliation of all grant programs to the general ledger and grant records. Implement reconciliation and review of all grant activity on a quarterly basis. Document process for development of the SEFA for submission to audit. Update annual closing checklist to ensure SEFA review.

Finding 2025-001: Review of Compliance Matrices and Narratives – Special Tests and Provisions The single audit report included the following recommendation: EY recommends that Amtrak update the control design with enough precision to ensure that reviews and updates to the compliance matrices are made on a regular cadence to ensure that any updates, amendments or changes are monitored and updated timely. Management Response/Status of Action Plans: Amtrak recognizes the need to improve our controls over the updates of the compliance matrices and will review its control processes. The company specifically notes the need to update its compliance matrices in a regular cadence and after every amendment. Amtrak will develop a process document to create or update compliance matrices that will be used as a guide by compliance matrices preparers and reviewers when one is created or updated. The contact for this item is Lucia Butts, AVP Funding and Grants. Amtrak anticipates fully remediating this finding by September 2026.

Management’s Response Community Council of Idaho, Inc. acknowledges the finding related to untimely reconciliations, material audit adjustments, and delayed financial statement issuance. Management agrees that improvements are necessary to strengthen internal controls over financial reporting, ensure timely account reconciliations, and improve the overall financial close and audit preparation process. Management recognizes that turnover within the business office during the audit year significantly impacted continuity, institutional knowledge, and the timely completion of reconciliations and closing procedures. Subsequent to year end, management has initiated corrective actions designed to improve financial reporting accuracy, accountability, and timeliness. Corrective Actions to Be Implemented 1. Implementation of Formal Monthly Closing Procedures Management will implement a standardized monthly financial close process with defined timelines, responsibilities, and review procedures. The monthly close process will include: Completion of all balance sheet reconciliations, Review of grant and contract revenue accounts, Review of property and equipment activity, Reconciliation of debt schedules, Reconciliation of pharmaceutical inventory balances, Recording of depreciation and interest expense, and Verification that all material journal entries are posted timely. A monthly close checklist will be developed and maintained to ensure consistency and accountability. 2. Timely Reconciliation of Grant and Contract Accounts Management will strengthen procedures surrounding grant and contract accounting to ensure receivables and revenue are reconciled monthly and supported by appropriate documentation. Actions include: Reconciling grant receivable balances to supporting reimbursement requests and funding agency records, Reviewing deferred revenue and earned revenue calculations monthly, Investigating and resolving variances timely, and Implementing supervisory review of grant reconciliations. 3. Enhanced Review and Oversight Controls Management will implement additional review controls over financial reporting and account reconciliations. These controls will include: Documented supervisory review and approval of reconciliations, Review of significant or unusual journal entries, Periodic review of financial statements and supporting schedules by senior finance leadership, and Earlier audit preparation and interim review procedures to identify issues prior to year end. 4. Strengthening Staffing and Organizational Structure Management and executive leadership have evaluated the operational needs of the business office and have taken steps to improve staffing stability and oversight capacity. Actions include: Clarifying accounting roles and responsibilities, Enhancing cross-training within the finance department, Providing additional training related to grant accounting and reconciliations, Utilizing external resources or consultants, as needed, to support complex accounting areas and transition periods. 5. Improvement of Clinic Reporting Processes Management will continue evaluating clinic reporting systems and procedures to ensure operational growth is adequately supported by accounting and financial reporting processes. This includes: Improving coordination between clinic operations and accounting, Standardizing reporting procedures, Evaluating system-generated reports for accuracy and completeness, and Implementing additional reconciliation and review controls related to clinic financial activity. 6. Audit Readiness and Timeliness Improvements Management will establish an audit preparation timeline with interim deadlines to support timely completion of the annual audit and compliance with federal reporting deadlines. The organization will: Prepare schedules and reconciliations in advance of audit fieldwork, Conduct periodic internal reviews of audit support documentation, Improve coordination with external auditors throughout the year, and Monitor progress toward required reporting deadlines. Contact Person Responsible for Corrective Action: Implementation oversight will be shared among executive leadership, finance management, program leadership, and those charged with governance. Anticipated Completion Date: Corrective actions began subsequent to year end and are expected to be substantially implemented during fiscal year 2026, with ongoing monitoring and refinement thereafter.

The City acknowledges the finding. The City will continue strengthening procedures to identify, track, reconcile, and report federal award activity throughout the fiscal year. Procedures will include maintaining documentation sufficient to identify the federal agency/ program, Assistance Listing number, award identifiers, expenditures, loan balances where applicable, subrecipient information, and required SEFA disclosures and notes. Management will also maintain centralized tracking records for federal award activity to support timely preparation of future SEFAs.