Corrective Action Plans

1. 2025-002 i. Comments on Finding: For the year ended September 30, 2025, the Corporation did not maintain the required amount of property insurance coverage for certain portions of the year. Management should ensure that an insurance policy is in place and that coverage amounts meet HUD requirements consistently throughout the year. ii. Actions Taken or Planned: Insurance coverage will be reviewed and monitored to ensure that an active policy is maintained and that coverage amounts comply with HUD requirements.  Responsible Person: Jill Cromartie  Completion Date: 11/12/2025  Steps to Implement: Review of existing controls and implementation of new procedures to ensure timely premium payments and prevent future lapses in required insurance coverage.

Corrective Action: I-CARE, Inc. will strengthen equipment and real property management practices to ensure alignment with UniformGuidance requirements. The Agency will update policies, enhance documentation, and reinforce internal oversight toensure accurate tracking, authorized use, and proper disposition of federally funded assets. Key Actions: Update property and equipment management policies. Strengthen asset tracking and documentation procedures. Reinforce staff training and internal oversight. Complete inventory reconciliation and documentation review. Responsible Officials: Director of Finance, in coordination with Program Leadership. Anticipated Completion Date: Within 120 days of audit acceptance. Status: In progress.

Finding Number: 2024-036 Audit Type: Single Audit Finding Title: Deficiencies in Equipment and Real Property Management Related Finding: 2024-021 (Yellow Book) 1. Contact Person Responsible for Corrective Action Name: Shannah Weaver Title: City Clerk Department: Finance Department 2. Planned Corrective Action The City will implement a centralized inventory tracking system and conduct annual reconciliations to ensure compliance with federal property management standards. 3. Anticipated Completion Date June 30, 2026 - plan already in place 4. Management1s Response Management concurs with the finding and will ensure staff are trained on property management procedures. 5. Status of Prior Year Finding This is a new finding.

Corrective Action Plan 2024-006 – Unallowable Expenditures National School Lunch Program (Significant Deficiency) Federal Program Information: Funding Agency: U.S. Department of Agriculture Title: National School Lunch Program FAL Number: 10.555 & 10.553 Passthrough: N/A Award Year: 2024 Responsible Official’s Plan: Due to the timing of the finding, the District is performing a permanent cash transfer in March to be compliant with the National School Lunch Program. Additionally, the specific corrective action plan provides details for how we have ensured the unallowable expenses for the National School Lunch Program will not occur again. Specific corrective action plan for finding: This was the result of an error in changing an employee's position from one department to another. Moving forward, the Human Resources Department will notify Payroll of any changes in position and will require TWO SIGNATURES prior to making any changes in pay coding. The two signatures are from the Director of Human Resources and the Director of Finance. Timeline for completion of corrective action plan: The permanent cash transfer process has begun and will be completed by March 31, 2025. The form to ensure two signatures are captured prior to making changes in pay coding is already created and being utilized. Employee positions responsible for meeting the timeline: Director of Finance – Cooper Jones Director of Human Resources – Lisa Salazar

2023 – 007: Equipment and Real Property Management (Compliance; Internal Controls Over Compliance) Material Weakness Condition: During our review of the Organization’s internal controls over compliance related to the Title V major program, we noted that the Organization did not obtain prior written approval from the funding agency for the purchase of land and a building with Title V funds, with the purchase exceeding the $20,000 threshold included in the Title V contract. Additionally, the Organization did not have an approved budget that included these capital expenditures. The Organization also does not have an adequate system of controls established to identify, mark, record, or maintain equipment and real property purchased with federal funds, and no periodic physical inventory of such assets is being performed. Corrective Action Plan: Management will review internal control policies and procedures to ensure that prior written approval is obtained for all capital expenditures with federal funds. A procedure will be set up for maintaining property records, conducting periodic physical inventories, and ensuring all staff are trained on these requirements.