Corrective Action Plans

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.

Finding 2023-001 Late Reporting and Noncompliance with Reporting Requirements Name of Contact: Charise Colsen, Finance Director Corrective Action Plan: A timeline will be established for year-end closing and preparation for the annual audits in a manner that accommodates meeting the nine-month audit submission requirement. Proposed Completion Date: January 31, 2025

Metlakatla Power and Light Management will ensure the annual audit is completed and submitted by the deadline.

·         Corrective Action Plan: The City has completed submitted its single audit reporting package for fiscal year September 30, 2023 as required by Rule 2 CFR section 200.512 (a) of the Federal Compliance Supplement. The Finance Department understands the reporting requirement. The Finance Department will endeavor to close the City books in a timely manner to facilitate the completion of the annual financial statement audit to allow for the submission of the audit report as required by rule 2 CFR section 200.512 (a) of the Federal Compliance Supplement.

Corrective Action Planned: The City of Dillon has engaged a Certified Public Accountant (CPA) to prepare the fiscal year ended June 30, 2024 audit that is expected to be completed in summer 2025. Name(s) of Contact Person(s) Responsible for Corrective Action: City Clerk, Kami Hoerning. City Treasurer, Karen Kipp. City Mayor, John McGinley. Anticipated Completion Date: Summer 2025

Finding 2023-003 The reporting package and data collection form for the 2022 audit was not filed by the September 30, 2023 deadline. This is a repeat of Finding 2022-001 from the 2022 audit. Auditors’ Recommendation NCST should ensure that its records are completed and reconciled in a timely manner, so that the single audit can be performed and completed on time, and the reporting package and data collection form can be submitted before the deadline. Corrective Action Taken To prevent future delays, NCST has streamlined financial reporting and established a timeline for federal and grant audit compliance. A Finance Director with extensive nonprofit experience has been hired, and a third-party accounting firm has been contracted for ongoing oversight, improved audit preparedness, and enhanced reporting accuracy. All financial reports are now being prepared and submitted by the deadlines, with continuous support and oversight by the third-party accounting firm and our internal Finance Director. Audit reconciliation and financial compliance processes have been significantly strengthened to ensure future deadlines are met without delay. Responsible Individual Executive Director, Rey Chavis Anticipated Completion Date March 2025.

The Authority strives always to meet all regulatory deadlines. This particular deadline for the Single Audit was complicated by the unprecedented nature of the COVID-19 pandemic (which, for many organizations such as ours, triggered a Single Audit requirement for the first time, and overwhelmed the audit profession with a surge of new Single Audits to conduct that did not exist previously). In the Authority’s case, the situation was further complicated by the fact that we were changing external audit firms moving into the prior reporting period (Fiscal 2022). By the time the incumbent audit firm had issued its Single Audit report for Fiscal 2021, and the successor audit firm could therefore begin the Fiscal 2022 and Fiscal 2023 Single Audits, it was already beyond the reporting deadline of March 31, 2023 for Fiscal 2022. By the time the Single Audit was issued by the successor audit firm for Fiscal 2022, the March 31, 2024 reporting deadline for the Fiscal 2023 Single Audit (this reporting period) had also lapsed. We are hoping to be able to work successfully with the successor audit firm in order to file our Single Audit for Fiscal 2024 timely on or before March 31, 2025 and also have timely filings thereafter.

Contact Person: Crystal Branham, Interim CFO. Recommendation: We recommend that the Center implement stronger internal controls to ensure that reporting deadlines are effectively monitored and met. This may include developing and maintaining a reporting calendar with clearly defined deadlines for financial reporting and assigning responsibility for tracking and ensuring timely submission of reports. Views of responsible officials and planned corrective actions: Management agrees with the recommendations. Management will implement appropriate internal control procedures. Anticipated Completion Date: December 31, 2024

As we mentioned in the SA 2022 Corrective Action Plan, we have been working with Unified Contracts which is helping us achieve our goal. We will continue with a Unified Contract to ensure that SA 2024 can be released on or before June 2025. Lead Person for Action Item Completion: Miguel A. Padilla Vázquez (Director of Administration)

Recommendation We recommend that management enhance its internal control structure, including financial close and reporting, to ensure timely filing of future Single Audit reporting packages. Management Response Corrective Action: EAWDB agrees that the single audit reporting package has not been submitted in a timely manner. EAWDB has engaged a third-party accounting firm and made staff duty changes to address the timely submission of accounting information. Due Date of Completion: March 31, 2025 Responsible Party(ies): General Administrator, Executive Director, third-party accounting firm

In 2023, the Authority continued to face challenges with staffing shortages and turnover in key financial positions. These challenges resulted in delays in performing and completing accounting functions and issuing financial statements in a timely manner. However, Finance Department is now almost fully staffed, and our accounting professionals possess the talent and experience to ensure accounting functions and processes are performed and completed in a timely matter. We now have the following accounting positions filled — Accounting Manager, Accounting Supervisor, and Senior Accountant. Furthermore, we have advertised and expect to soon fill the position of Controller. Filling these positions and elevating the talent level have resulted in immediate enhancements in financial reporting and will enable the Authority to submit the reporting package to the Federal Audit Clearinghouse by the prescribed due date.

Planned Corrective Action: I feel that there is a fundamental misunderstanding between the audit firm and NMF accounting staff on this issue. During the audit process, NMF accounting staff responded to requests from the auditors in a timely manner. Frequently, we would submit documentation and then we would not hear back for weeks. What would be helpful is an agreed upon time frame for the audit and due dates when responses are required. We will meet all due dates. It would be helpful if the Pulakos Accounting web portal for submitting documentation was organized according to the PBC requests using Smart Sheet or a similar software. It would make tracking response much easier. Anticipated Completion Date: January 31, 2025. Responsible Contact Person: Philip Varnum, Finance Director, and Finance Staff

The 2023 audit for Hawkeye Area Community Action Program, Inc (HACAP) was delayed due to a loss of financial data that was stored on an internal server because of a data breach. The back-up of the financial data was also stored on an internal server, was compromised as well, resulting in a complete loss of information. The financial information had to be rebuilt based on support documentation, and the reconstruction of the data took place over the course of several months. HACAP has migrated our financial accounting software to a data center managed by a 3rd party. A full backup of the database is done daily to both the cloud and to a hard drive that is securely stored. Person(s) Responsible: Jason Fisher, Cindy Johnson, Jim McGoldrick Timing for Implementation: Immediate/Completed