Corrective Action Plans

The Alliance will implement more administrative oversight with respect to reporting requirements and deadlines to make sure all audits are completed timely.

Due to no fault of Southern Workforce Board, Inc., and circumstances beyond the previous CAP's control, the audit report for the period ending 6/30/2023 was not completed as required. Upon notification of prior audit firm closing, Southern Workforce Board, Inc. performed an immediate procurement by soliciting a Request for Proposal to 13 audit firms. Upon completion of the procurement, Michael Green, CPA was selected to perform the 6/30/2023 audit as soon as their schedule would allow. Upon successful completions of 6/30/2023 audit report, the audit process for the period ending 6/30/2024 will proceed on time. Southern Workforce Board, Inc. will ensure in the future that the audit firm selected will be able to perform the planned audits in a timely manner in the future.

Significant Deficiency and Noncompliance over Reporting Repeat Finding: Yes Auditee’s Corrective Action Plan: The City has purchased Workday, an Enterprise Resource Planning (ERP) system, and implemented the software with the assistance of Accenture consultants. Although Workday is “live” as of August 2022, the City is currently working to refine the software and fully utilize functionality. The Workday grants modules requires the grant funding source be defined prior to grant approval and fields are available for the AL titles and numbers and sub-recipients’ information. The implementation of the Workday grants modules centralizes much of the grant management function by requiring the agencies to upload the grant documents into Workday. Prior to the completion of the SEFA, the City instituted training sessions with the agencies to ensure that the reporting is understood by the agencies, with special emphasis on subrecipient payments being reported properly. Additionally, the City will give access to the grant report upon which the SEFA is based. The City will keep a check list to ensure that all agencies respond to the grant certification to ensure that all agencies review the grant data. Based on FY 23 training and feedback the City is expanding that training schedule to begin with agency preparation in November 2024. Additionally, the corrective actions for grants have included citywide trainings in the fourth quarter FY24 led by the Grants Management Office and BAPS on key grant accounting functions in Workday; including for example, Billing, Creating an Award, Sub Recipients with each training having between 50-70 agency grant staff attending. Contact Person: Michael Moiseyev, Chief Financial Officer, Baltimore City Completion Date: December 2024

Finding 2: Delayed Single Audit Delivery Background: The delivery of our single audit has been delayed due to staffing challenges and the need for improved coordination. With our organization’s expansion post-pandemic, increased hiring has required administrative staff to adapt to complex compliance requirements. Corrective Actions: 1. Audit Timeline Adjustment o Action: Begin the audit process no later than April each year to allow sufficient time for completion and submission. o Responsibility: Executive Team and Audit Committee o Timeline: Adjust the audit schedule for the upcoming year immediately. 2. Training for Administrative Staff o Action: Provide targeted compliance and audit process training for administrative staff to improve their proficiency and efficiency. o Responsibility: Administration o Timeline: Start training sessions within 60 days. 3. Regular Check-ins with Auditors o Action: Schedule regular monthly check-ins with auditors to ensure alignment on timelines and address potential issues early. o Responsibility: Finance Department o Timeline: Implement monthly check-ins starting [insert date]. 4. Resource Allocation o Action: Assess and allocate additional resources to support the audit process, ensuring staff have the necessary tools and support. o Responsibility: Administration o Timeline: Complete resource assessment within 60 days. ________________________________________ Conclusion AYUDA, INC. is committed to addressing these findings with urgency and transparency. By implementing the corrective actions outlined above, we aim to strengthen our financial management and compliance processes, ensuring these issues do not recur. We appreciate the auditors' feedback and are eager to demonstrate our improvements in the upcoming audit cycle. Approval: ________________________________________ Miguel Chacon Co-Executive Director

Corrective Action Plan October 29, 2024 Person responsible: Fernando Soto, President / CEO Fiscal Year Ended December 31, 2023 Section III – Federal Awards Findings and Questioned Costs Item 2023 – 001 Federal Assistance Listing Number: 93.914 HIV Emergency Relief Project Grants – Public Health Solutions Condition The Organization’s Data Collection Form submission to the Federal Audit Clearinghouse was not filed on time within nine months of the end of its fiscal year. Views of Responsible Officials and Corrective Action Although a new audit firm was engaged to complete the December 31, 2022, financial statements audit, and the necessary staffing changes were made to ensure filing of the December 31, 2023, was completed within nine months of the end of the fiscal year, additional time was needed to complete accurate fiscal records for the year ended December 31, 2023. Monthly closings and fiscal records reconciliations for the year ending December 31, 2024, are timely being conducted. Timely filing of the Data Collection form for the year ended December 31, 2024 is anticipated.

Finding 2022-001—Reporting The administrative staffing turnover BAERI experienced was detrimental to our ability to meet the reporting deadline for the 2022 audit. Moving forward, BAERI will ensure that our audit report and SF-SAC form are submitted to the Federal Audit Clearinghouse within nine months after the end of the audit period. Corrective Action Plan for Finding 2022-001—Reporting BAERI has taken the following steps in order to meet the reporting and deadline requirements outlined in 2 CFR 200.512 moving forward: 1. Implement policies and procedures to ensure that the internal documentation needed for our annual audit is easily accessible by finance staff and not onerous for staff to compile for the auditor. 2. Hire and train additional finance staff in order to implement the above mentioned policies and procedures needed to allow for a smooth, timely audit.

Purpose of this document: This is a corrective action plan in response to the single audit report finding for the fiscal year ended September 30, 2023. Identifying Number: 2023-001 Finding: Late filing of the compliance report. Uniform Guidance 2 CFR 200.512(a) requires that an organization’s audit must be completed, and data collection form and reporting package should be submitted within the earlier of 30 days after receipt of the auditor’s report or nine months after the end of the audit period. Auditor Recommendation: It is recommended that the Agency file the reporting package timely to the Federal Audit Clearinghouse. Corrective Action: Meridian Institute will establish a detailed timeline to ensure all necessary documentation is collected in a timely manner so that the reporting package may be filed by the due date to the Federal Audit Clearinghouse. Person Responsible for Corrective Action: Kauthar Rahman, CFO-COO Anticipated Completion Date for Corrective Action: The corrective action will be immediately implemented in response to the auditor’s recommendations. Sincerely, Kauthar Rahman CFO-COO

Finding 2023-001 Reporting – Significant Deficiency in Internal Control Condition and Effect: The single audit of the Hunterdon Healthcare System’s (the System) federal awards for the year ended December 31, 2023 was not completed within the nine months following the period-end and as a result, the System did not submit its single audit reporting package within the required timeframe. As such, the System did not comply with the aforementioned regulatory requirements. View of Responsible Officials and Planned Corrective Action: The System will review the single audit compilation process to identify where automation can be better utilized to increase timing of information gathering. In addition, cross training will be instituted to enable knowledge sharing amongst various teams to mitigate delays due to staff turnover. Name of Contract Person: Mr. Herbert White Chief Financial Officer Hunterdon Healthcare System, Inc. (908) 788-6153 hwhite@hhsnj.org Completion Date: December 31, 2024 Herbert While,

The City has established policies and procedures related to grant administration and accounting guidelines for allowable costs. The City is aware of the deadline for the submission of the Single Audit. A personnel vacancy for the position that performs the tasks of supplying the amount of federal expenditures resulted in a delay in ensuring the deadline and the policies and procedures were adhered to. The positions have been filled and the City has taken steps to ensure the personnel have received guidance and training regarding grant accounting, including deadlines for the audit.

Views of Responsible Officials: Life Asset thought it had done what was required by submitting the annual audit on time directly to Federal Grantors (U.S. Department of the Treasury and the U.S. Small Business Administration). Once Life Asset became aware of the requirement to also file data collection forms for single audit to the Federal Audit Clearinghouse, Life Asset did so right away. Life Asset has established an internal control procedure to ensure that the data collection forms and reporting package will be filed timely moving forward.

Brightside Up, Inc will stay current with new standards that could delay filings in the future. A plan to research and review new GAAP auditing procedures at the onset of the calendar year to be implemented prior to the accounting firm arriving for the formal audit. Financial information will be ready and available in a timely manner for all filings to be submitted by the deadline, to ensure compliance with the Federal Audit Clearing House. Contact person Keely Weise, CFO, 518-426-7181, kweise@brightsideup.org. The anticipated date for resolving the audit finding is December 31, 2024. Brightside Up, Inc will monitor the corrective action plan during the year to remain on the timeline for meeting all filing deadlines.

There was significant turnover in the finance department, including the CFO and the finance director. These turnovers affected the ability of the organization to produce the information on time for the auditors. The Organization is working with external consultants to improve the timeliness of reconciliations and audit preparation and recruiting vacant positions. We completed accounting policy changes which will correct the issues noted. Management is confident that the issues that have been noted will be rectified in the fiscal year ending September 30, 2024.

Finding 2023-005 Deadline for Federal Single Audit - Noncompliance and Internal Control Over Compliance - Significant Deficiency Planned Corrective Action 1. To ensure the Association establishes controls to ensure the audit is completed timely and the reporting package is submitted to the FAC within the required timeframe. The Association has hired both a full-time on-site CFO and an Anchorage-based Comptroller to address key personnel turnover. Anticipated Completion date - Completed 2. The new financial leadership team of the CFO and Comptroller have developed a standardized monthly closing and reconciliation process. The monthly closing process includes supervisory review of the reconciliation details and activity throughout the fiscal year are performed at a sufficient level of precision and tracking to support the financial reporting. Anticipated Completion date – In process expected completion date December 31, 2024. 3. The CFO is evaluating reassignment of responsibilities to ensure that a single person in a position of authority can oversee accurate and comprehensive grant financial reporting and coordinates between various control owners. In addition, the CFO is evaluating reassignment of responsibilities to ensure that a single person in a position of authority can oversee accurate and comprehensive Association financial reporting and coordinates between various control owners. Anticipated Completion date – In process expected completion date December 31, 2024. 4. Complete the Audit and submit the reporting package early or on time to the FAC. Anticipated Completion date – In process expected completion date June 15, 2025.

Finding 2023-001: Internal Control over Compliance Type of finding: Internal Control (material weakness) and Compliance (noncompliance) Recommendation: The Organization should strengthen its internal controls over year-end financial close and reporting with adopted policies and procedures to ensure compliance with the Report submission portion of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements section. Action Taken: The Organization plans to strengthen internal controls by adopting methods that allow for better tracking of restricted versus unrestricted funding, in addition to creating internal methods of tracking income, expense, and reporting of restricted funds throughout the year. The Organization took action with a change in management and a new external bookkeeper, which will allow the above processes to be completed with oversight from both internal and external sources. If there are questions regarding this plan, please call the responsible party listed below. Thank you, Laura Cusick Executive Director Rio Grande Headwaters Land Trust Laura@Rightslv.org (719)657-0800

SafeQuest Solano will implement stronger internal controls and procedures to ensure timely submission of the DCF. This will include designating a responsible party for tracking and submitting the DCF, creating a timeline and checklist for required submissions, and conducting periodic reviews to ensure compliance with deadlines. Additionally, SafeQuest Solano will provide training to relevant staff on the importance of meeting federal compliance requirements. SafeQuest Solano has already implemented a new database system.

Finding 2023-003: Name of Contact Person: Meagan O’Neal Management Response: The assessment of all finance staff duties has provided a clearer understanding of how the audit package can be timely moving forward. Processes have been put in place for reviewing accounts, budgets and reports more often to prevent a year end rush to collect data. Proposed Completion Date: Immediately.

Finding 2023-002 Single Audit Report Filed Late Condition as Noted in Auditor’s Finding: The Commission did not complete and submit their audit to the Federal Audit Clearinghouse by the due date of September 30, 2024. Responsible Individuals: Board of Commissioners and Management Corrective Action Plan: The Commission will implement procedures to begin audit preparation work earlier in the calendar year to ensure reports are filed within the nine-month reporting deadline set forth by Uniform Guidance. Anticipated Completion Date: Ongoing analysis

Identifying Number: 2023-004 Finding: The single audit package was not submitted to the Federal Clearinghouse within the time required. The Single Audit package for the Authority’s year ended December 31, 2023, should have been submitted to the Federal Clearinghouse by September 30, 2024. The delay was caused by the Cyber Incident in January 2024 which delayed the release of year end reporting to the external auditor to May 2024. Staffing shortages at the Authority contributed to the late filing. A further delay was the result of the availability of the audit staff. Corrective Actions Taken or Planned: On February 7,2024, the Authority completed all industry standard, minimum cybersecurity remediation and compliance requirements following the incident, as set forth by the National Institute of Standards and Technology (NIST) Cyber Security Framework and Dell Technologies. All hyper-converged infrastructure, network firewall, and networked components have been examined through a rigorous network remediation and data validation process, in order to significantly reduce the risk of further malicious exposure of its data and equipment to any/all entities separate from the organization. The Kansas City Area Transportation Authority has moreover, taken measures to secure and improve the overall security posture during the remediation period for all workstations, servers, and networked infrastructure, with the addition of continuous monitoring and next generation antivirus systems with endpoint detection response capabilities, firewalled intrusion detection and prevention measures, as well as the development and implementation of continuous identity access management and data loss prevention features and processes. In April 2024, the American Public Transit Association (APTA) performed a financial peer review on the Authority. Among the recommendations as best practice by the peer group was the replacement of the long-standing audit firm with a new firm. The Request for Purchase (RFP) was conducted, and a new audit firm has been selected. Approval of the new Audit firm contract is scheduled for approval by the Board of Commissions on October 22, 2024. KCATA will work with the new audit firm to develop a schedule to publish financial statements by April or May of each year which was the historical schedule in place. Contact person responsible for corrective action: Andrew Morse, Comptroller

Audit Recommendation: Management should put controls in place over the preparation and review of the schedule of federal expenditures of federal awards to ensure that only (and all) federal expenditures are included. Planned Corrective Actions: The Organization has reorganized and expanded the internal finance team to allow for more capacity to prepare an accurate SEFA and to provide requested audit documentation in a timely manner. The Organization accepts the recommendation. Anticipated Completion Date: Close of fiscal year 2024 Contact Person: Steven Gaydos, Chief Financial Officer

Finding 2023-007: Timely Submission of Single Audit Report (SAR) and Document Collection Form (DCF) To eliminate this finding recurring in future periods, POF will create an internal Annual Audit Plan (AAP), identifying required tasks, deliverables, due dates, and responsible internal and external personnel for each task. POF’s AAP will include five-six (5-6) months' lead time prior to future mandatory submission dates. Simultaneously, POF will communicate the AAP timelines with the Audit Engagement Partner to ensure audit staffing continuity and availability. POF will achieve accurate, complete, and timely future SAR and DCF submissions through incorporating these process improvements along with strengthening its internal controls, gaining experience in its first two Single Audits, and in acquiring an understanding of the Auditor’s role in verifying compliance and the adequacy of related supporting documentation.

inding Number 2023-003 Contact Person(s): Mansour Camara, CFO, Carmelle Palomino, Controller Corrective Action Planned: The delay in submitting the audit on time is mainly due to changes with the SEFA reporting. Management created a closing process which includes contract review to ensure accurate SEFA reporting. Anticipated Completion Date: Date completed 9/10/2024

Finding 2023-002 Late Submission of Financial Statements to FAC and REAC (Significant Deficiency) Recommendation: The Authority should review and enhance its policies, procedures, and internal controls to ensure the financial reporting package and audited financial statements are submitted by the required due date. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Authority will evaluate its’ financial reporting and close processes and controls to determine whether additional controls over the preparation of the final trial balances and related schedules should be implemented. As part of this process, we will create a yearend checklist with deadlines established, and set up status meetings to monitor the progress. Name(s) of the contact person(s) responsible for corrective action: Cia Cook, Deputy Executive Director & CFO Planned completion date for corrective action plan: August 31, 2024

Finding 2023-003 Deadline for Federal Single Audit – Reporting – Noncompliance and Material Weakness in Internal Control over Compliance Planned Corrective Actions: The Finance Department is continuing its efforts in establishing and enforcing internal deadlines to ensure the financial statements are audited within the appropriate reporting deadlines. The department has shifted staff duties to ensure the FY24 financial statements will be completed within the appropriate reporting deadlines. Individual(s) Responsible for Corrective Action Plan Elizabeth Fischer (Finance Director) Jenna deLumeau (Controller) Anticipated Completion Date: The department has developed internal deadlines to ensure the FY24 financial statements will be completed within the appropriate reporting deadlines. This has been completed.

FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) acknowledges the findings identified during the single audit regarding reporting requirements stemming from a lack of personnel. However, FUNDACION DE DESARROLLO COMUNAL DE PUERTO RICO, INC. (FUNDESCO) has already contracted capable personnel to assist in the finance department to comply with financial reports.

Finding 2023-03 Reporting – Data Collection Form and Reporting Package (Significant Deficiency) U.S. Department of Health and Human Services Community Services Block Grant (Federal Assistance Listing #93.569) Federal Award Numbers: 60204, 60215, 60225, and 60235 Federal Award Year: 2020-2023 Responsible Officials Contact Information: 1) Monae Priolenau-Jones Telephone 718-310-5610, mpriolenau@wearebcs.org 2) Jodi Querbach Telephone 718-310-5600, X 1015 jquerbach@wearebcs.org View of Responsible Officials and Corrective Action Plan: Management agrees that the single audit reporting package was not submitted within the required timeframe due to key employee turnover coupled with staffing challenges subsequent to year end. In addition, BCS began a transition from one third-party external firm to another third-party firm in September of 2022. The former firm held the general ledger data for BCS and has been slow to turn it over in a manageable manner causing the delay in filing of the single audit report package. Dmitriy Goyzman (current Chief Financial Officer) was hired in December of 2022 and is actively in the process of hiring a new internal finance team. Back office finance department operations are currently filled by the second third-party external firm. In addition to the CFO, BCS has payroll, purchasing and 2 staff accountants and will have a Controller on staff by mid-June of 2023. Hiring of five additional positions for grants management will be completed in the Fall of 2023 replacing BDO personnel with in-house staff. In our new configuration, BCS will: 1) own its financial software and data, 2) be sufficiently staffed to run its day-to-day financial operations, 3) be able to support program operations in an efficient manner and 4) be able to respond and complete audits on time. The management will ensure that the single audit report package is submitted before the March 31, 2025 deadline. Pursuant to the action plan outlined in the response to Finding 2023 001, the audited financial statements will be issued by November 30th, 2024. Immediately following, the finance team will turn their attention to the reports required by the Uniform Guidance and the Federal Form 990 with a goal of completing fiscal 2024 reporting requirement by January 2025. Recommendation: We recommend that BCS enhance its closing and reporting process to ensure the reports required by the Uniform Guidance is submitted by the aforementioned deadline.