Corrective Action Plans

Schedule of Corrective Action Plan For the Year Ended December 31, 2023 Finding 2023-02: Significant Deficiency and Noncompliance Over Reporting Responsible Official’s Response and Corrective Action Plan Rising for Justice (RFJ) concurs with the findings. RFJ acknowledges the importance of adhering to the Federal guidelines for the submission of the reporting package within the mandated nine-month period. This finding is a result of the carry-over of certain grant funds from FY 2023 to FY 2024, as well as a transition in the organization’s accounting team. To address this, RFJ will implement the following actions: 1.Policies and Procedures Development: RFJ will create and enforce comprehensive policies and procedures to ensure that audits are initiated and completed promptly. This will include detailed timelines and checkpoints to monitor progress throughout the audit process. In addition, RFJ will adhere to a year end closing process that reconciles all significant accounts. 2.Training for Grant Administration: RFJ will provide training for individuals responsible for administering grants within RFJ. This training will cover essential aspects of grant administration, ensuring that our team is well-equipped to manage these programs efficiently and in compliance with Federal requirements. Planned Implementation Date of Corrective Action Plan June 20, 2025 Person Responsible for Corrective Action Plan ___________________________________ Chijioke Akamigbo, Executive Director April 15, 2025

Management have implemented procedures so that the required data collection form can be submitted within 9 months of year‐end.

Corrective Action Taken: ARDC will make every effort to secure an audit firm, an engagement letter (at the time of confirmation) and a signed contract for a timely audit for future audits. Responsible Party: Kristi Kane, ARDC Executive Director Anticipated Completion Date: September 30, 2025

Management has started work on their 2024 audit preparation and will ensure that it is submitted timely.

Finding 2023-002: Material Weakness, Late Issuance of the 2023 Single Audit Finding: The Single Audit packages for the City’s fiscal years ended June 30, 2023, June 30, 2022 and June 30, 2021 should have been submitted to the Federal Audit Clearinghouse by March 31, 2024, March 31, 2023 and September 30, 2022, respectively. The City missed the filing deadlines, making the filings for 2023, 2022 and 2021 late. Corrective Action Taken or Planned: We have created a budget team within the City’s Finance Department to focus on compliance and reporting for grants.

Thriving WI has made significant enhancements to its accounting team in both experience and depth of knowledge by outsourcing accounting functions to a third party provider with experience in this reporting. Additionally processes and procedures to support planning, performing and completing the audit on time are utilized and have been in effect since January 1, 2024.

The City will attempt to file all reporting packages in accordance with 2 CFR 200.512(a).

2023-002 – Submission of Data Collection Form Management’s Corrective Action Plan: Management agrees with the finding identified in the audit. The constraint of finance staffing limitations pushed the issuance of the audited financial statements past the September 30, 2024 deadline. We anticipate meeting any filing deadlines in the future.

Finding 2023-007 Corrective Action Plan: The County will submit the single Audit to the Federal Single Audit Clearinghouse as soon as it’s completed. Responsible Party: County Auditor Estimated Date of Completion: May, 2025.

Finding 2023-001 Late Reporting and Noncompliance with Reporting Requirements Name of Contact: Eli Wassillie, Tribal Administrator Corrective Action Plan: Management will engage a CPA firm with enough advanced timing to ensure that the single audit is completed and submitted with in the 9-month time period. Proposed Completion Date: December 31, 2024

Finding no.: 2023-001 Contact person(s) responsible: Kymberly Horner, Executive Director Corrective action planned: The late filing was due to significant turnover in the Fiscal Department beginning in 2021. Work was delayed as new staff required training on processes in conjunction with working through a large backlog of work in the Department that was necessary to complete in order to prepare the Financial Statements for audit. In addition to adapting its processes in the Fiscal Department to ensure the continuance of proper separation of duties and adherence to policies and procedures during staff transitions, Management is developing procedures to hire, train, and retain Fiscal Staff to help stabilize the department to ensure the work can continue in the event of unexpected staff turnover. Management is aware of the deadline related to the submission of the data collection form and anticipates that these measures will have a positive impact on the timeliness of future submissions. Anticipated completion date: October 2023

View of Responsible Official and Corrective Action Plan Heading Home management is in agreement with this finding. After years of turnover in key management positions steps have been taken to address staffing challenges and these positions have been successfully staffed with high-quality individuals who bring extensive knowledge and expertise to their roles. These positions include a new Chief Executive Officer, Director of Operations, Chief Financial Officer, and Director of Human Services. To address challenges in accounting and finance Heading Home has contracted with a local CPA firm specializing in nonprofit accounting and financial reporting to assist the CFO with daily accounting tasks, the monthly close, financial reporting to management and the board of directors, and to facilitate and ensure audits are completed timely each year. The new management group is committed to maintaining a skilled and competent team in key financial roles. Heading Home’s accounting team is now in the process of preparing for the 2024 audit and anticipates the audit to be completed by December 31, 2025. While this will once again result in a late filing, the new management team has made significant strides in a short amount of time and anticipates that the 2025 and all future audits will be submitted on or before the March 31st due date. Management anticipates the above corrective action plan to be fully implemented by March 30, 2026. Personnel responsible for ensuring implementation include Connie Chavez, Executive Director, Debbie Brickman, Chief Financial Officer, and Armando Sanchez, contract accountant team lead.

The auditor recommends that the Town ensure compliance with the 9 month requirements and have the audits and single audit reporting package submitted by the end of September each year. The Town plans on submitting all the outstanding years of audits upon completion of its December 31, 2023 audit, with submission to the FAC by May 15, 2025.

Healthy Relationships California management will ensure the audit is completed within the required time period and submitted to the Federal Audit Clearinghouse promptly in conjunction with the external accounting firm.

Finding 2023-002 Significant Deficiency in Internal Control over Compliance, Noncompliance - Reporting Corrective Action Plan To prevent recurrence of the late filing of financial reports, staff will work to prepare year end reconciliations for major programs, state and federal schedules of expenditures to determine single audit status, and file corresponding reports in a timely manner. Expected Completion Date June 30, 2025

Recommendation: Controls should be implemented to ensure timely filing of the audit package to the Federal Audit Clearinghouse. Views of Responsible Officials: The Organization agrees with the auditors' recommendation.

Finding 2023-005 Late Reporting and Noncompliance with Reporting Requirements Name of Contact Person: Kaylee Reierson, Finance Officer Corrective Action: Neither current City Administrator or Finance Officer was employed with the City during this time period. Moving forward, all reporting will be done in a timely manner. Proposed Completion Date: Already implemented when the new administration was hired.

Management agrees with the finding and will ensure that the required deadline is met in the future.

Finding 2023-001 – Material Weakness – Accounting Recordkeeping All Programs Other Condition During the year ended June 30, 2023, management was unable to provide timely year end trial balances in accordance with U.S. GAAP without significant adjusting journal entries required to accurately reflect the underlying accounting transactions. Recommendation We recommend that individuals overseeing the accounting and finance department continue to review the Organization's current accounting policies and update existing policies or implement new policies, as needed, to ensure that the trial balances are accurately maintained throughout the year, reconciliations are completed and reviewed monthly or quarterly, as appropriate, and the trial balances and related supporting schedules are prepared and reviewed timely after year-end. Management’s Corrective Action Plan Management has implemented a structured monthly closing process to ensure timely and accurate recording of transactions. All balance sheet accounts will be reconciled by the 15th day of the following month. We will develop and implement a month-end and year-end closing checklist based on U.S. GAAP and, as necessary, any city, state, or federal reporting requirements. We are also evaluating current staffing levels to determine if there is a need to hire additional personnel or retain external accounting support during the year-end closing process. We will conduct a pre-closing review in the 4th quarter to identify and resolve discrepancies prior to year-end. We will also prepare a preliminary trial balance and draft financial statements by July 31 to allow sufficient time for audit fieldwork. The Finance Committee of the HopePHL Board of Directors will receive quarterly updates on the status of the monthly financial closing process. Contact Person: Kathy Desmond, President and CEO Anticipated Completion Date: June 30, 2025

The delay in submission of the December 31, 2023 Single Audit reporting package to the Federal Audit Clearinghouse by the due date is a direct result of the delays in completion of the December 31, 2023 audit which were caused by the deficiencies outlined in Finding 2023-001. Management believes that the outsourcing of critical accounting functions will help ensure that PCRI’s records are reconciled in a timely manner which will allow for the Single Audit to be submitted by the due date going forward. The timeline for full transition of relevant accounting processes to the outsourced accounting firm which started in January of 2025 is approximately seven months due to the complexities of PCRI’s operations. PCRI anticipates this transition being complete in July of 2025.

Recommendation: We recommend that management implement processes to ensure timely completion and submission of the Single Audit report in future years. This could include setting internal deadlines, increasing oversight, and coordinating with the audit firm to identify and address potential delays earlier in the audit process. Action Taken: Management agrees with the finding and will take steps to improve the timeliness of the audit process. Anticipated completion date: June 30, 2025 Name of contact person and title: Jeffrey Seymour, President / CEO

2023-003 – All Federal Programs – Compliance – Data Collection Form Finding: For the fiscal year ended September 30, 2022, the Village did not submit the data collection form to the Federal Clearinghouse by the required due date of June 30, 2023, in accordance with the federal requirements. In addition, due to the late issuance of the 2023 fiscal year audit, the submission deadline for FY 2023 of June 30, 2024 has passed and as such, the Village did not meet the submission deadline. Correction Action: The Village will ensure the data collection form for the fiscal year ending September 30, 2024 is submitted at the completion of the audit. Responsible Parties: Village Administrator, Community and Economic Development Coordinator and Accounting Supervisor. Anticipated Completion Date: June 2025

CORRECTIVE ACTION PLAN (CAP): Planned Corrective Action: The County is developing policies and procedures to ensure that financial records are maintained on a more current basis, reconciled timely and audited within nine months after year-end. Anticipated Completion Date: Immediately Responsible Official: Lee Engfer, Administrative Coordinator

Recommendation: We recommend that the Center implement procedures to ensure that the audit reports are filed within the regulatory deadlines. Action Taken: Tri-County OIC has taken the following steps to ensure timely submission of audit reports: Created a Compliance Calendar that includes all major reporting deadlines, including audit report submission due dates. Assigned Responsibility to the Finance Administrator and Executive Director to monitor deadlines and coordinate with the external auditors in a timely manner. Established a 90-Day Pre-Deadline Notification System to ensure ail audit preparation materials are compiled and submitted to auditors well in advance. Incorporated Audit Timeline Planning into the organization's annual financial closeout procedures. Scheduled Regular Check-ins between the Finance Team and auditors to track progress and address delays proactively. These steps are desitzned to improve internal coordination and accountabiiity, ensuring that all future audits are submitted within the reguired timeframe. Anticipated Completion Date: April 15, 2025 Contact Person Responsible: Christina Johnson, Executive Director

The Department has hired a new audit firm that specializes in the audits of Tribes. Our new audit firm has demonstrated a commitment to allocating the necessary resources to complete our audits in a timely manner.