Corrective Action Plans

CONDITION: The Regional Office of Education No. 39 manually maintains and stores its inventory of property and equipment. Asset details in the property records include only the description of the property, acquisition date, and cost of the property. The other minimum requirements specified by the Code are not included in the property records. Moreover, the Regional Office of Education No. 39 was unable to properly account for the results of its physical inventory count and only performed partial reconciliation. PLAN: The ROE will combine the current inventory documents to provide a complete detailed accounting of all property and equipment which will provide both the required information for federal funds as well as a reconciliation to the capital outlay disclosures within the financial statements. Physical inventory will be taken each year with additions and deletions recorded and signed off on by management. These documents will be recorded and stored each year for review. ANTICIPATED DATE OF COMPLETION: The anticipated date of completion is January 2025. CONTACT PERSON: Jill Reedy, Regional Superintendent

Elementary and Secondary Education School Emergency Relief and Governors Emergency Education Relief Fund– Assistance Listing No. 84.425D & 84.425C Recommendation: We recommend the District design and implement capital asset record procedures and controls that ensure all necessary information is tracked in capital asset records for assets purchased with federal awards. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Business office staff will receive training on current district policies regarding the tracking of capital assets for federal purposes. A separate inventory of captial assets purchased with federal funds will be created and maintained. Name(s) of the contact person(s) responsible for corrective action: Brian Dasher, Director of Business Services Planned completion date for corrective action plan: 12/1/2024

Contact Person: Business Manager Planned Corrective Action: The District will perform a physical inventory of all equipment purchased with federal dollars. Planned Completion Date: June 30, 2025

Corrective Action: The district will ensure fixed asset personnel will review all purchases that are assets during the PO process. Also, quarterly and during year-end-close, all assets purchased will be reconciled to the general ledger and fixed asset module. Responsible Parties: Avery Johnson, Business Manager Robert Sanders, Superintendent Corrective Action Start Date: October 31, 2024

Finding No. 2023-002: Inaccurate Property Management Records AL Numbers: Various Program Name: Research and Development Cluster Corrective Action: As noted in the finding, in January 2024, the University conducted a full federal equipment inventory to update property records to ensure accuracy of federally funded equipment. Process Improvements: - The University will update its Equipment Disposal Form to align with the University’s Property Management System Manual. - The Central Accounting team will create and publish equipment tagging, disposal guidance and standards to coincide with the updated Equipment Disposal Form. - Annual federal equipment inventory process will be updated to include escalation procedures. This will require outstanding reports are escalated to the appropriate divisional designee. Expected Implementation: June 30, 2024 Training: - All departments of the University will be sent a memo outlining the updated Equipment Disposal Form and process guide, and inventory escalation procedure. - The Central Accounting team will schedule virtual training with all equipment coordinators. Expected Implementation: October 31, 2024 System Improvement: - The University is researching equipment tagging software alternatives that will enhance tracking capabilities and enable asset tagging at a more granular level. Expected Implementation: March 31, 2025 Contact: Kathy Conrad and Craig Elmore

Name of Auditee: Town of Jasper, New York Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: Year ended December 31, 2023 CAP Prepared by: Stephen Dennis, Town Supervisor Phone: (607) 792-3686 (2) Audit Finding 2023-002 - The Town did not have accurate capital asset records. (a) Implementation Plan of Actions - The Town is looking into capital asset software and is having a physical inventory performed. (b) Implementation Date - This will be implemented for the year ended December 31, 2024. (c) Persons Responsible for Implementation - The Town Board and Supervisor of the Town of Jasper.

FA 2023-002 Improve Controls over Equipment Compliance Requirement: Equipment and Real Property Management Internal Control Impact: Material Weakness Compliance Impact: Material Noncompliance Federal Awarding Agency: U.S. Department of Education Pass-Through Entity: Georgia Department of Education Assistance Listing Number and Title: COVID-19 - 84.425D - Elementary and Secondary School Emergency Relief Fund Federal Award Number: S425D210012 (Year: 2021) Questioned Costs: None Identified Description: The policies and procedures of the School District were insufficient to provide adequate internal controls over equipment and real property management as it relates to the Education Stabilization Fund. Corrective Action Plans: The Finance Department will implement a revision process to work with the technology departments Media Specialist who conduct inventory on an annual basis. We will implement a quarterly meeting to identify any changes in equipment and real property. When funds are identified as equipment and real property for federal grant funds. We adhere to provisions included in the Uniform Guidance, Section 200.313(d)(1). The listing must include the following information. A description, an identifying number, the source of funding, the title holder, the acquisition date, the cost, the percentage of federal participation in the project costs, the location, the use and condition, and any ultimate deposal data for each piece of equipment. Estimated Completion Date: April 30, 2025 Contact Person: Dr. Jute Wilson Telephone: 770-358-5891 Email: Jute.Wilson@lamar.k12.ga.us

FINDING 2023-006 Finding Subject: COVID-19 – Education Stabilization Fund – Equipment and Real Property Management Summary of Finding: The School Corporation hired a consultant to compile and provide to them a fixed asset report that was to contain all inventory and assets purchased that exceeded the School Corporation's capitalization threshold through June 30, 2023. The consultant prepared the report; however, the School Corporation did not have any policies or procedures in place to ensure the listing was complete, nor was there any documentation that differences between the compiled asset report and the School Corporation's equipment records were reviewed and resolved. During the audit period, the School Corporation completed an improvement project totaling $1,738,356 with ESSER funds. This improvement project was not included on the asset listing or physical inventory prepared by the consultant. Contact Person Responsible for Corrective Action: Tracey Haas, Deputy Treasurer Contact Phone Number and Email Address: thaas@mcas.k12.in.us (219)873-2000 ext. 8346 Views of Responsible Officials: We concur with this finding. We are implementing a proper system of internal controls and developing policies and procedures to ensure asset records include all the necessary information, new assets are properly added, and any discrepancies are reconciled. Description of Corrective Action Plan: Moving forward we will ensure that are capital assets list is updated as required. We will also ensure that the capital assets list includes the specifics requirements required in regards to federal grants and attach proper documentation. Anticipated Completion Date: The anticipated completion date for this corrective action will be January 1, 2025.

FINDING 2023-007 Finding Subject: COVID-19 – Education Stabilization Fund – Equipment and Real Property Management Summary of Finding: The School Corporation maintained a detailed listing of capital assets; however, the asset records provided for audit did not include three of the six assets paid for with federal funds. The School Corporation utilized COVID-19 - Education Stabilization Fund awards, totaling $153,484, to purchase an air handler unit, a generator, planter equipment, auto pilot software, a carpet cleaner, and a floor cleaner. The software, carpet cleaner, and floor cleaner were not included in the capital asset records. Additionally, the capital asset listing provided did not identify which assets were purchased with federal dollars, a serial number or other identification number, who holds title, the location of the asset, nor the use and condition of the property. Contact Person Responsible for Corrective Action: Kelly McPike Contact Phone Number:765-689-9131 Views of Responsible Official: We concur with the finding Description of Corrective Action Plan: An effective internal control will be developed to include a description of the property, a serial number or other identifying number, the source of the funding for the property, the award identification number, who holds the title, the acquisition cost, and the cost of the property. This will ensure all asset reports include all of the necessary information and new assets are added properly. Anticipated Completion Date: April 2024

Views of Responsible Officials The Organization agrees with this finding. Corrective Action Plan The Organization will update its property records to include all required information. Additionally, the Organization plans to complete a physical inventory count and related reconciliation on an annual basis. Name(s) of Responsible Individuals Lacy Kimes, Board President Anticipated Completion Date October 31, 2024

Views of Responsible Officials and Planned Corrective Action - The County did complete an annual inventory in November 2023 and is scheduling another inventory for November 2024. Responsible Official -Andrea Montoya, Deputy County Manager, and Robert Placencio, Finance Director Timeline and Estimated Completion Date - December 31, 2024.

Management response: Warren Easton experienced key personnel changes and lingering effects of COVID-19 which had a direct effect on the financial statement year end closing procedures. Easton plans to re-emphasize policies and procedures to enforce a timely financial close. Responsible Party: Lindsay Carter, Chief Financial Officer Estimated Completion Date: December 30, 2023

2023-003 Property and Equipment Management Responsible Person: Ronald McNair, Executive Director The Inventory tracking sheet did not contain all required asset information and was not properly reconciled to property records. Corrective Action Plan: Executive Director, Ronald McNair has requested help in this manner from T&TA. Executive Director, Ronald McNair has hired a Facilities Manager to work with Fiscal staff to ensure any purchase, construction or renovation activities that occur throughout the fiscal year are recorded and added to the inventory schedule and supporting documentation for each transaction is submitted and filed in the Finance Department. This schedule will include a listing of all real property and details for each site, including acquisition cost, renovation and/or new construction, as well as the dates and source of funds expended. Once updated, the schedule will be reviewed and approved by the Executive Director. Monthly audits by Facilities Manager and Fiscal Officer will be conducted to ensure compliance. The Fiscal Officer and Board Directors will conduct quarterly and year end audits to ensure that requirements are met. The Corrective Action will commence Effective September 10, 2024; and shall be completed by May 31, 2025.

We understand how crucial it is to have strong policies and procedures in place. Here’s how we plan to move forward: 1. Review of Existing Policies and Procedures: We’re currently taking a close look at our existing policies and procedures to ensure they align with the Uniform Guidance. This will help us identify any gaps and make necessary updates so that we’re fully compliant. 2. Development of New Policies: Alongside this review, we will create clear and comprehensive written policies in key areas, such as: • Cash Management: Setting up procedures that comply with 2 CFR 200.305 to ensure timely payments. eCFR :: 2 CFR 200.305 -- Federal payment. • Allowability of Costs: Crafting guidelines that follow Subpart E—Cost Principles, so we can confidently determine which expenses are allowable. https://www.ecfr.gov/current/title-48/chapter-7/subchapter-E/part-731/subpart-731.7/section-731.770. • Conflict of Interest: Establishing standards of conduct that address potential conflicts and promote transparency. • Equipment and Real Property Management: Developing policies for managing equipment acquired under federal awards in line with 2 CFR 200.313(b). eCFR :: 2 CFR 200.313 -- Equipment. • Procurement Procedures: Creating clear procurement guidelines that align with 2 CFR 200.318 through 200.326 to ensure fairness and oversight. eCFR :: 2 CFR 200.318 -- General procurement standards. 3. Training and Communication: The Finance Department will be responsible for training all staff involved in managing federal awards. Training sessions will ensure that everyone understands the requirements and their roles in maintaining compliance. This training will be completed by December 31, 2024. Personnel responsible: Eduardo Cedeno, Director of Finance Anticipated completion date: December 31, 2024

Person responsible for corrective action plan: Anthony Madera, CFO Lummi Indian Business Council 2665 Kwina Road Bellingham, WA 98226 (360) 384-7181 Condition: Management completed a physical inventory in 2022-2023, but was not able to provide support showing management review and approval. Solution: With the guidance and authority outlined in the Department’s internal policies and in accordance with 2 CFR, Part 200, Subpart D, Property Standards, The non-Federal entity must submit annually an inventory listing of federally-owned property in its custody to the Federal awarding agency as defined within existing governing statues, regulations, or terms and conditions of the award. Procedures for the delegated staff administering these regulatory activities will follow the minimum requirements of maintaining property records. Final review of inventory will have final reviewed by Department’s CFO of approval and will be documented annually. Corrective action plan will be in accordance with c CFR, Part 200, Subpart F, §200.511 Audit findings follow-up. The Department entered into a professional agreement with Financial Service Advisors, LLC to assess current policies to update standards of management by identifying credentials and experience of senior finance staff who will oversee these activities. Revisions to the policies will provide the Department’s government an extensive manual that will be developed into a fiscal management training. Training will include but not be limited to reviewing procurement methods, fiscal review of ledger activity, and audit responsibility on a quarterly basis and reporting to tribal council. Responsible: Anthony Madera, Chief Financial Officer, Lummi Indian Business Council Anticipated completion date: 06/30/2025

Type of Finding: Significant Deficiency in Compliance and Internal Control over Compliance Federal Agency: U.S. Department of Defense Federal Program Name: Conservation and Rehabilitation of Natural Resources on Military Installations Assistance Listing Number: 12.005 Federal Award Identification Number and Year: H79TI083313 - 2020 Award Period: September 28, 2020, through September 27, 2025 Criteria or specific requirement: 2 CFR 200.313(d)(2) states that a physical inventory of property must be taken and the results reconciled with the property record at least once every two years. Condition: During testing, it was noted that a physical inventory and reconciliation with the property records had not been performed. Questioned costs: None. Context: A sample of 4 was made from a population of 4 pieces of equipment purchased with funds from the major program (entire population). Of the 4 sampled, all belonged to a population of assets that had not been part of a formal physical inventory and property reconciliation. Cause: The Organization does not currently have procedures in place to perform a formal inventory count and reconciliation with the property records at least once every two years. Effect: Without periodic equipment counts, the Organization is in noncompliance with federal regulations around Equipment and Real Property Management. In addition, there is an increased risk of errors and inaccuracies in the inventory records and an increased risk of fraud or theft going undetected. Repeat Finding: No. Recommendation: CLA recommends that the Organization adopt policies and procedures that include performing a formal inventory count and reconciliation back to the property records at least once every two years, in compliance with 2 CFR 200.313(d)(2). The inventory count should be documented and signed by the individual performing the count as a form of attestation to the amounts recorded. Views of responsible officials: There is no disagreement with the audit finding. Action taken in response to finding: The organization has strengthened their property record policy to include a formal inventory count and reconciliation on an annual basis in compliance with 2 CFR 200.313(d)(2). This inventory also includes description of the condition of the property and documented signature by the individual performing the inventory. Name(s) of the contact person(s) responsible for corrective action: Gary Slater Planned completion date for corrective action plan: 10/1/2024

Findings Related to Federal Awards 2023 002 Equipment and real property management Federal Agency: U.S. Department of Transportation Program Name (ALN): Public Transportation Emergency Relief Program (ALN 20.527) Federal Grant Numbers: NJ-44-X004 Contact Person: Fatima Castellanos, Manager, PATH Financial Services, PATH Financial Services Division, 201-216-6459. Corrective Action: The Port Authority acknowledges an internal control deficiency in performing a physical equipment inventory of equipment as required under CFR 200 for the Public Transportation Emergency Relief Program 2013 49 U.S.C. 5324 (Grant award NJ-44-X004 PATH-H). PATH successfully performed a physical inventory of equipment in 2018, the first year it was required. In 2020, the performance of a physical inventory coincided with the COVID-19 pandemic which facilitated the retirement of key personnel in PATH who were responsible for performing the physical inventory of the equipment that was federally funded. This staff transition led to a loss of PATH system expertise necessary to pick up the process previously developed, resulting in the inadvertent lapse in performing the physical inventory in 2020 and 2022. To mitigate this deficiency PATH has performed a physical inventory in 2024 and updated its procedures as they relate to performing the physical inventory of equipment and to have staffing redundancies in place to account for staff turnover. In addition, PATH updated its equipment inventory log to reflect the correct serial numbers on the four pieces of equipment that KPMG identified. Anticipated Completion Date: The entry of all FTA Funded assets for the Public Transportation Emergency Relief Program 2013 49 U.S.C. 5324 will be loaded into the Port Authority Asset Management System (PAMS) by December 31, 2024. Entry of these assets will contain details pertaining to the categories (Asset Name, Supplier, PO#, Cost, Grant #, FTA Share, Date Received, Property Number/Serial Number, Useful Life, Date of Last Inventory, Observed Location, Condition, Current Use, Holder of Asset, Disposition Date) required under CFR 200 and updated on a biennial basis. It is important to note, however, that due to PATH’s nature as an operating railroad, equipment is moved frequently across the system as required. Therefore, the location of the equipment will only be accurate as of the date the inventory is performed.

REFERENCE # 2023-004 Public Transportation Emergency Relief Program (ALN # 20.527)- Significant Deficiency-Non-Compliance Agency: U.S. Department of Transportation Criteria: Equipment and Real Property Management - As stated in Uniform Grant Guidance - §200.313 Requirements for Equipment and Real Property Management: • Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property (2 CFR section 200.313(d)(1)). • A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)). Condition/Context: The MTA has Equipment and Real Property management procedures in place. MTA has corporate policies and procedures regarding Equipment and Real Property management. We tested the Public Transportation Emergency Relief Program’s Equipment and Real Property management compliance. Based on our review of the Equipment and Real Property for this program, we noted of sixty samples selected, eight (8) equipment samples related to New York City Transit Authority were transferred to the City of New York Police Department. The eight piece of equipment related to police radios and were included in MTA Biannual report as out-of service and fully depreciated. Therefore, we were not able to verify existence of these piece of equipment. Recommendation: We recommend that the MTA ensure all equipment in service should be properly accounted and reported in MTA’s Bi-Annual report and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)). Corrective Action Plan: Capital Asset Planning will remove the assets from the Biennial listing extracted from PSR (Project Status Report). The accounting group will write off the assets from the accounting system. We don’t need to notify FTA since the assets are fully depreciated. Action Date: October 31, 2024 Final Implementation Date: October 31, 2024 Name And Phone Number Of Person Responsible For Implementation: Brian Kershaw (646) 252-4495 Lloyd Jairam (646) 252-7122

REFERENCE # 2023-002 Rail and Transit Security Grant Program (ALN # 97.075)- Significant Deficiency-Non-Compliance Agency: U.S. Department of Homeland Security Criteria: Equipment and Real Property Management - As stated in Uniform Grant Guidance - §200.313 Requirements for Equipment and Real Property Management: • Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property (2 CFR section 200.313(d)(1)). • A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)). Condition/Context: The MTA has Equipment and Real Property management procedures in place. MTA has corporate policies and procedures regarding Equipment and Real Property management. We tested the Rail and Transit Security Grant Program’s Equipment and Real Property management compliance. Based on our review of the Equipment and Real Property for this program, we noted that the physical inventory of the program property was not taken in the last two years, as required by 2 CFR section 200.313(d)(2). . Recommendation: We recommend that MTA ensure that the physical inventory of the property must be taken and the results reconciled with the property records at least once every two years as required by 2 CFR section 200.313(d)(2). Corrective Action Plan The MTA Office of Security is implementing an update on our procedures for equipment inventory management. We will be working with the Office of Security’s Director of Quality Assurance along with MTAHQ Audit, to help us review all equipment inventory listings and physical inventory inspection of federally funded purchased equipment. We will be implementing an internal agreement between MTA Office of Security and the MTA Agency awarded federal funds under grant programs managed by HQ Office of Security. This agreement will include all terms and conditions applicable to the specific grant award. Action Date September 30, 2025 Final Implementation Date September 30, 2025 Name And Phone Number Of Person Responsible For Implementation Daemion De Vonish Work Ph# 212-878-4768

FINDING 2023-001 Finding Subject: Airport Improvement Program – Equipment & Real Property Management Summary of Finding: Material Weakness, Other Matters. The airport does not have a detailed listing of capital assets. Contact Person Responsible for Corrective Action: Kelsey Veatch Contact Phone Number and Email Address: 812-877-2542 kveatch@huf.com Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The airport currently has a capital asset listing, but it does not contain all the information that State Board of Accounts (SBOA) would like to have provided in the listing. SBOA has offered to provide a capital asset template that they recommend units use. Using the provided template the airport will work to update their current capital asset listing. The HR/Business Relations Manager will take the lead on ensuring the capital asset listing is updated to the new format and keeping the listing current and accurate. Anticipated Completion Date: Upon receiving the template from SBOA, the airport will work to have the capital asset listing updated to the new format by Dec 31, 2024.

Title of result and comment:: Frankton FINDING 2023‐004 Contact person Responsible for Corrective Action: First Name: Timothy Last Name: Detrick Contact’s Phone Number:: (765) 754‐7285 Contact’s Email Address:: tdetrickct@gmail.com Views of Responsible Official:: We concur with the finding. Description of Corrective Action Plan:: We are making an Asset Ledger this year. And we will keep it updated every two years and add to it when we purchase a asset that exceeds $5,000. I will also have our Town Administrator double check. Anticipated Completion Date: Year: 2024 Month: 7 Day: 1 If applicable: Document reason issue will NOT be corrected within 6 months:: INDIANA STATE BOARD OF ACCOUNTS 33 Unit Name: Town of Frankton County: Madison Report period beginning date: Year: 2023 Month: 1 Day: 1 Report period ending date: Year: 2023 Month: 12 Day: 31

Name of Auditee: Town of Jasper, New York Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: Year ended December 31, 2023 CAP Prepared by: Stephen Dennis, Town Supervisor Phone: (607) 792-3686 (2) Audit Finding 2023-002 - The Town did not have accurate capital asset records. (a) Implementation Plan of Actions - The Town is looking into capital asset software and is having a physical inventory performed. (b) Implementation Date - This will be implemented for the year ended December 31, 2024. (c) Persons Responsible for Implementation - The Town Board and Supervisor of the Town of Jasper.

FA 2023-001 Improve Controls over Equipment Compliance Requirement: Equipment and Real Property Management Internal Control Impact: Significant Deficiency Compliance Impact: Nonmaterial Noncompliance Federal Awarding Agency: U.S. Department of Health and Human Services Pass-Through Entity: Direct Assistance Listing Number and Title: 93.600 - Head Start Federal Award Number: 04CH01123704 (Year: 2023) Questioned Costs: None Identified Description: The policies and procedures of the School District were insufficient to provide adequate internal controls over equipment and real property management as it relates to the Head Start program. Corrective Action Plans: An extensive physical inventory has been performed by the Finance Department and the Head Start program manager to identify all equipment and property purchased and maintained by the Head Start program. We are updating the equipment and inventory listings to ensure that records are maintained in accordance with federal regulations. We are reviewing and revising our procedures for performing physical inventories on an annual basis. Estimated Completion Date: 12/31/2024 Contact Person: Mollie Smith, Finance Director Telephone: 478-237-6674 Email: mhsmith@emanuel.k12.ga.us

MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE AND MATERIAL NONCOMPLIANCE – U.S. DEPARTMENT OF EDUCATION – PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, COVID-19 – EDUCATION STABILIZATION FUND, FEDERAL ALN 84.425 2023-002 Internal Control Over Compliance and Material Noncompliance With Equipment and Real Property Management Requirements Finding Summary 2 CFR § 200.313 (c)(1) and (d)(1) requires that Aurora Charter School (the School) obtain approval from the federal funding agency or pass-through agency prior to the purchase of equipment with federal funding. During our audit, we noted the School did not have sufficient controls in place within the COVID-19 – Education Stabilization Fund federal program to assure compliance with federal equipment and real property management requirements, resulting in material noncompliance. Corrective Action Plan Actions Planned – This condition and the resulting material noncompliance was caused by a misunderstanding of the cost threshold at which federal equipment and real property management compliance requirements must be applied, due to the School’s adopted internal capitalization threshold being lower than the federal threshold. The School intends to revise its internal capitalization threshold to align with the federal threshold, and to review its other control procedures relating to equipment and real property management requirements to ensure compliance for future federal awards expenditures. Official Responsible – Matthew Cisewski, Executive Director. Planned Completion Date – June 30, 2024. Disagreement With or Explanation of Finding – The School agrees with this finding. Plan to Monitor – The School’s Executive Director, Matthew Cisewski, will oversee the implementation of proposed corrective actions and verify that appropriate controls are in place and understood by individuals responsible for federal program oversite at the School to ensure future compliance with federal equipment and real property management requirements.

FINDING 2023-001 Finding Subject: Community Development Block Grants/En􀆟tlement Grants ‐ Equipment and Real Property Management Summary of Finding: Although the City maintained property records, adequate property records for assets purchased with CDBG award funds were not maintained. One asset, totaling $222,333, was purchased with CDBG funds during the audit period The one asset purchased was added to the property records but did not include the source of funding for the property, who holds 􀆟tle, percentage of federal par􀆟cipa􀆟on, and condi􀆟on of the property. Contact Person Responsible for Correc􀆟ve Ac􀆟on: Douglas Whitham, City Controller Lelia Kelley, Director of Community Development Contact Phone Number and Email Address: (765) 648‐6034; dwhitham@cityofanderson.com (765) 648‐6096; Ikelley@cityofanderson.com Views of Responsible Officials: We concur with the finding. Descrip􀆟on of Correc􀆟ve Ac􀆟on Plan: We concur that the Community Development Department should properly maintain a lis􀆟ng of all equipment and real property purchased with Community Development Block Grant (CDBG) funds exceeding the prescribed threshold, presently $5,000, to sa􀆟sfy all related federal award requirements. The City Controller maintains capital asset records with robust internal controls in place. Such records are maintained for the purpose of financial repor􀆟ng with appropriate thresholds in place designed to capture significant asset addi􀆟ons for the stated purpose. Such thresholds do not correspond to those required in the administra􀆟on of federal funds. Addi􀆟onally, capital asset records maintained for financial repor􀆟ng would not require the capture of other informa􀆟on such as who holds 􀆟tle, percentage of federal par􀆟cipa􀆟on, and condi􀆟on of the property. Each department of the City administering federal awards should maintain records designed to achieve federal compliance. The City Controller will work with the Community Development Department to ensure a proper system of internal control is in place and that a list of equipment and real property is sufficiently maintained by Community Development to sa􀆟sfy federal compliance requirements. An􀆟cipated Comple􀆟on Date: The an􀆟cipated correc􀆟ve measures should be in place by December 31, 2024.