Corrective Action Plans

Description of Finding: The organization did not complete and submit its Single Audit within the required timeframe due to special projects (mortgage sales) that dramatically limited staff bandwidth in key financial management positions, resulting in delays in audit coordination and reporting and the timing of commencing the audit.Statement of Concurrence: The organization concurs with this finding.Corrective Action: The organization has resolved the underlying cause of this finding by streamlining the data collection process related to mortgage sales transactions. Furthermore, the organization is in the process of reorganizing the financial department to streamline workflows. The Staff Accountant in partnership with the Director of Finance & Administration are responsible for oversight of financial reporting, compliance with Uniform Guidance (2 CFR Part 200), and coordination of the Single Audit process.Corrective actions implemented include:• Departmental reorganization is underway to streamline workflows and provide clear ownership of departmental responsibilities (including single audit compliance) between Staff Accountant and Director of Finance and Administration.• Development of a formal audit timeline and internal milestones to ensure timely audit initiation, completion, and submission.• Strengthening of internal controls over financial reporting and audit documentation.• Ongoing communication and coordination with external auditors to ensure compliance with federal audit requirements. These actions ensure that future Single Audits will be completed and submitted timely in accordance with Uniform Guidance.Status of Finding: This finding resulted from unexpected special projects that limited financial staff bandwidth as well as fragmented workflows, which have both been addressed. Corrective action is in process.Projected Completion Date: Corrective action completed as of 6/5/2026, with ongoing monitoring incorporated into standard financial management procedures.

management has taken the following actions: Defined Roles and Responsibilities: A primary audit coordinator will be designated to oversee all audit-related requests. Clear ownership has been assigned to appropriate personnel for each audit area to ensure accountability for timely responses.  Formal Review Procedures: All audit support will undergo a supervisory review prior to submission to ensure completeness, accuracy, and appropriateness of documentation.  Enhanced Oversight: Management will conduct periodic status meetings during the audit process to monitor progress, resolve bottlenecks, and ensure deadlines are met.  Training and Communication: Accounting and relevant personnel will receive additional guidance regarding audit expectations, timelines, and documentation standards to improve overall responsiveness and quality.

Management will implement enhanced year-end closing and audit coordination procedures, including earlier preparation timelines, improved tracking of audit deliverables and reporting deadlines, and increased coordination with outsourced accounting and audit partners to help ensure timely completion and submission of future Single Audit reporting packages.

Finding #2024-001 We anticipate the completion date of February 28, 2026. The responsible person to contact is Dale Hartle, President of Ohio Regional Development Corp. Phone number is 740-622-0529. Planned Corrective Action: Management agrees with the finding. Verbal direction was given from the funder that copies of program audits should be submitted upon request. However, going forward, Management will submit the audit package to the funder by the required deadlines.

MVF will implement additional training and monitoring to ensure timeliness with compliance requirements.

Recommendation: We recommend the Coalition continuously monitor its expenditures of federal funds and begin the process of engaging an Auditor in a timely manner when the Coalition is aware that it will exceed the threshold triggering a single audit. Views of Responsible Officials: Per management, they will make it a priority to be aware of all deadlines related to the submission of quarterly and annual reports for federal awards and submit these on time.

Corrective Action Plan: All federal grant revenue will be tracked with specific coding to ensure that Directors are aware of revenue accruals as they relate to minimum thresholds for single audits, and in a manner that allows for timely filing of future audits to the single audit clearing house. Monthly reconciliations will ensure that general ledger entries and account balances are updated and corrected on a timely basis, and in a manner that will allow for enough time for the audit to be completed by the deadline. Anticipated Completion Date: Completed

Recommendation: We recommend the Alliance develop a additional policies and procedures that ensure all reporting requirements are met on an annual basis. If the Alliance lacks sufficient internal resources, they should consult with an external resource to draft the procurement policy. Views of Responsible Officials: Management partially agrees. There have been instances when a report will appear for the first time on the PMS website for a period that has already closed, and it shows as delinquent. PMS is checked at least monthly for reports due soon. All of the finance team will add reminders to their calendar, so this is not repeated

Organization's Response: MCJ agrees that the single audit report was not timely filed. As referenced in the Finding, MCJ had not previously exceeded the $750,000 threshold for the single audit requirement. Moving forward, MCJ will review federal expenditures for federal awards at the close of the fiscal year to determine if the threshold for the submission of a single audit has been exceeded. Furthermore, MCJ will once again work with its auditors to schedule MCJ’s audit in order to have the audit completed and any single audit report, if necessary, filed on a timely basis.

2 CFR Part 200.303(a) states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and terms and conditions of the federal award. Section 200.507 of the Uniform Guidance states that the program-specific audit shall be completed, and reporting required submitted within the earlier of 30 calendar days after receipt of the auditors’ report, or nine months after the end of the audit, unless a longer period is specified in a program-specific audit guide. During 2023, we have strengthened internal controls related to review of the quarterly lost revenue calculations and reporting in the PRF reporting portal. Going forward, we will complete our audits and submit the required reports by the deadlines. We have taken appropriate steps to identify all other assistance received by quarter during the period of availability on the PRF report going forward.

View of Responsible Officials and Planned Corrective Actions: Despite Alma having a well-established accounting process in place to ensure the timely and accurate generation of financial reports, the delays in presenting schedules during this audit were influenced by unforeseen circumstances. Notably, scheduling conflicts arose due to the audit coinciding with either concurrent program reviews or audits mandated by the County, compelling Alma to prioritize accordingly. Alma is proactively adapting its infrastructure and operational framework to enhance efficiency continuously. Management expresses confidence in the effectiveness of the current plan and response, believing it will mitigate similar issues in future audits. Personnel Responsible and position: Lourdes Caracoza, CEO/President Wally Racela, Chief Financial Officer Anticipated Completion: December 31, 2023

Management of the Foundation concurs with the audit finding. When management discovered the requirement had not been met, they immediately contacted an independent auditor to perform the program-specific audit to satisfy the reporting requirements.