Corrective Action Plans

Finding #2025-001 Current Year Reporting Package and Data Collection Not Filed Timely: Recommendation: We recommend that management implement procedures to ensure that reporting packages and data collection forms are filed timely in the future. Action taken: The Mount St. James Apartments agrees with the auditor’s recommendations and will implement procedures to ensure timely filing in the future. For questions regarding this corrective action plan, please contact John Lutz, Vice President of Financial Strategy, at (315) 424-1821.

Institution Name Philander Smith University Fiscal Year Ended June 30, 2025 Federal Program / Assistance Listing Number (ALN) Finding Reference Number 2025-003 1. Finding Summary The auditor noted that the University did not submit is audit reporting package and data collection form to the Federal Audit Clearinghouse within the time frame required. 2. Management’s Position Management agrees with the finding. Management Explanation Management agrees with the finding and acknowledges that the identified condition resulted from staffing vacancies and timing delays in the annual audit caused by limited staff. 3. Root Cause Analysis The root cause was staffing vacancies which has caused the University to fall behind on key reconciliations and month-end close processes. With fewer personnel, existing staff had to take on additional responsibilities which has caused slower turnaround times for day-to-day duties. Although staff are cross-trained where appropriate, vacancies disrupt normal workflows. 4. Corrective Action(s) Management is working to fill vacancies and also further cross-train staff. The University is also considering how to best engage temporary staff based on funding available from vacancies. The University acknowledges that although month-end workflows are in place, monitoring needs to be strengthen, especially during peak times. Finally, the University is investing in a new cloud-based Enterprise Resource Planning (ERP) software designed for higher education institutions, Ellucian Colleague, which should automate more business processes and reconciliations. Description of Corrective Actions The University has recently hired a Controller, a position which has been vacant for some time. The Controller will work to strengthen month-end workflows, staff training, and to fill remaining vacancies. 5. Risk Mitigation (Required — Even if Disagreeing) The University institution recognizes the importance of mitigating compliance risk in this area. Accordingly, the corrective actions described above are designed to reduce the risk of inconsistent documentation, misinterpretation of regulatory requirements, and future audit findings. 6. Responsible Party • Office/Department: Business Office • Title of Responsible Official: Vice President for Fiscal Affairs • Name (optional): _____________________________ 7. Implementation Timeline • Corrective action implemented: ☒ Yes ☐ No • If not fully implemented, expected completion date: December 31, 2026 8. Status of Corrective Action (For Prior-Year or Repeat Findings) ☐ Fully implemented ☐ Partially implemented ☐ Not yet implemented Evidence of Implementation Hiring documentation for the Controller. 9. Monitoring and Sustainability The University will conduct quarterly internal reviews of month-end close commencing the period ending June 30, 2026 to monitor progress with audit preparation which will ensure timely Federal Audit Clearinghouse submission. 10. Management Certification I certify that the information provided above is accurate and represents management’s corrective action plan for the audit finding identified. Signature: ________________________________________________ Name: __LaTonya Hayes_____________________________________ Title: ___Interim CFO_______________________________________ Email: __lhayes@philander.edu_______________________________ Phone: __(501) 370-5341____________________________________ Date: ___9/17/2026__________________________________________

Finding 2025-005: Data Collection Form compliance Corrective Action Management agrees with the recommendation. Management recognizes the importance of timely submission of the Data Collection Form and reporting to the Federal Audit Clearinghouse. The Center will establish a formal audit completion timeline that includes internal deadlines for financial statement preparation, audit fieldwork, report review, and Federal Audit Clearinghouse submission. Progress toward audit completion will be reviewed periodically by management to help ensure future submissions are completed within the timeframe required by 2 CFR 200.512. Implementation Timeline Procedures will be implemented beginning with the fiscal year ending June 30, 2026, and reviewed periodically as necessary. Responsible Parties Chief Financial Officer and Finance Department Management.

VIEWS OF RESPONSIBLE OFFICIALS Management is responsible for designing and maintaining internal controls over financial reporting that is sufficient to provide reasonable assurance that management can prepare the financial statement and the Uniform Guidance Audit Report in conformity with US GAAP and federal regulations. Management will improve accounting and financial reporting policies and procedures to include the timely insurance of the financial statement and the uniform guidance report. IMPLEMENTATION DATE March 31, 2027 RESPONSIBLE PERSON Naelia Cruz Cañals, CFO

Views of Responsible Officials and Planned Corrective Actions: Responsible Person(s): ECA Executive Director/Whittle Strategic Accounting Anticipated Completion Date: November 2026 In September 2026, the Organization terminated its contract with the previous accounting services provider and engaged Whittle Strategic Accounting. Whittle Strategic Accounting has a proven history of working with nonprofit organizations, many of whom are audited, and they have systems and processes that will provide better controls over the accuracy and timeliness of the financials. As part of their regular monthly close processes, Whittle Strategic Accounting prepares financials and workpapers in a manner that allows for a more seamless audit. This will reduce the amount length of time that it takes for an audit to be preformed and will allow the Organization to file required reports with the Federal Audit Clearinghouse in a timely manner. ECA Management will ensure that all materials necessary for audit review will be maintained and reviewed monthly. Monthly board and committee minutes will be maintained in a secure online file folder, accessible upon request for audit reporting.

Findings Relating to Financials Statement: Finding 2025-002 – Late Filing SUGGESTED CORRECTIVE ACTION PLAN ON LATE FILING Planned Corrective Actions Management will implement a formal Single Audit filing calendar that identifies all statutory deadlines for Federal Single Audit (FAC) and Florida Single Audit submissions, including interim milestones for close, audit fieldwork, report issuance, and filing. The Controller will be assigned to oversee audit coordination, monitor progress against deadlines, and ensure timely submission of all required reporting packages and certifications. Management will implement a submission checklist to verify completeness of the reporting packages prior to submission and will retain documentation evidencing timely filing with both the Federal Audit Clearinghouse and the Florida Auditor General. Management will accelerate year‑end close and audit preparation to allow sufficient time for review and filing prior to statutory deadlines. In addition to the audit filing status being periodically communicated to Executive Leadership Team, the Chair of the Audit Committee and the Chair of the Finance Committee, the calendar will also be shared going forward to enhance governance to support oversight and accountability. Anticipated Completion Date: 09/15/2026 Responsible Person/Title: April Dobes, CFO Management Statement: Management believes these actions will prevent recurrence and ensure timely filing of future Federal and Florida Single Audits.

Corrective Action Planned: Management acknowledges the finding related to the untimely completion and submission of the federal Single Audit reporting package. Management will complete internal compliance and administrative procedures in advance of the applicable federal filing deadline. Management will address delays as they arise to facilitate the timely completion of the audit and submission of the reporting package in accordance with applicable federal requirements. Name(s) of Contact Person(s) Responsible for Corrective Action: VP Accounting and Corporate Controller Anticipated Completion Date: June 30, 2027, the submission deadline for the fiscal year 2026 Federal Single Audit report

MAG US is implementing additional procedures to ensure the audit and the filing of the data collection form are completed in a timely manner. MAG US is committed to maintaining strong internal controls and ensuring the accuract of our financial reporting.

Reporting – Data Collection and Reporting Package Corrective Action: LSS remains committed to and is focusing on its efforts to submit the Data Collection Form and Reporting package within the stipulated timeframe. Proposed Completion Date: September 30, 2025 Contact Person: Dasil Thomas-Williams, Director of Financial Affairs Telephone Number: (340) 772-4099 ext. 106

Name of auditee: Friends of the Mission Finding: 2025-002 Name of audit firm: Propp Christensen Caniglia LLP Period covered by the audit: January 1, 2025 through December 31, 2025 CAP prepared by: Scott Thurmond, Executive Director Telephone: (916) 416-0901 Comments: Management agrees with the finding. Actions: Management will ensure that audited financial statements are submitted to the Federal Audit Clearinghouse within the required time frame. Anticipated completion date: September 30, 2026

Name of Contact Person Responsible for Corrective Action: Catherine Schaaf, Executive Director Corrective Action Planned ECO will implement procedures to ensure the timely completion and submission of the SEFA and applicable reporting package. Following the December 31 fiscal year-end, ECO will target completion of the year-end financial close within 45 days, preparation of key financial schedules, the SEFA, and initial auditor-requested documentation by March 15, and completion of the annual audit by August 31, in advance of the September 30 regulatory deadline. The HR & Finance Director will be responsible for coordinating preparation of the SEFA, year-end financial documentation, and auditor-requested materials and for tracking applicable reporting deadlines. The Operations Director will monitor progress against established year-end close and audit milestones and assist in identifying and resolving delays that could affect timely completion. The Executive Director will provide oversight to ensure the audit and required reports remain on schedule for timely submission. Key audit milestones and required reporting deadlines will be incorporated into ECO’s compliance calendar and reviewed regularly by leadership throughout the year-end close and audit process. Any delays or issues that could affect timely completion will be identified and addressed as they arise. Anticipated Completion Date March 15, 2027

Management acknowledges the delay and has taken steps to improve the timeliness of the audit and reporting process, including implementing a formal audit timeline, increasing oversight of audit progress, and enhancing coordination with external auditors.

In 2026, procedures were implemented to strengthen oversight of Single Audit reporting requirements and ensure timely submission of future reporting packages. Responsibility for monitoring applicable filing deadlines has been assigned to designated finance personnel, with deadlines incorporated into the Organization’s annual audit calendar. Finance personnel will also coordinate with the independent auditors throughout the audit process to monitor completion and submission requirements and will address any potential delays or required extensions prior to the applicable deadline.

Late Submission of Reporting Package and Data Collection Form Corrective Action Plan: Management has established procedures to improve the timeliness of the annual audit and related Federal Audit Clearinghouse submission. The Federal Audit Clearinghouse reporting deadline has been added to the Organization’s annual compliance calendar, and responsibility for monitoring the deadline has been assigned to the Executive Director. Management will actively monitor the progress of the annual audit, timely provide requested information to the auditors, and communicate with the auditors regarding outstanding items that could delay completion of the audit. The Board will provide oversight of the process. These procedures are intended to facilitate completion of the audit and submission of the reporting package and Data Collection Form within the timeframe required by Uniform Guidance. Responsible Party: Executive Director, Board of Directors (oversight) Planned Completion Date: Procedures implemented; corrective action remains ongoing through timely completion and submission of the 2025 audit reporting package and Data Collection Form.

The Corporation is increasing its efforts to ensure that its policies and procedures are in place to ensure timely submission of reports. Completion Date: Estimated September 2026 Contact Person: Rajuan Sherman Chief Financial Officer 2731 M.L. King, Jr. Blvd Tuscaloosa, AL 35403 (205) 614-6070 rsherman@whatleyhealth.org

Finding #2025-001 Current Year Reporting Package and Data Collection Not Filed Timely: Recommendation: We recommend that management implement procedures to ensure that reporting packages and data collection forms are filed timely in the future. Action taken: Hawley-Winton Apartments agrees with the auditor’s recommendations and will implement procedures to ensure timely filing in the future. For questions regarding this corrective action plan, please contact John Lutz, Vice President of Financial Strategy, at (315) 424-1821.

The Borough has implemented procedures to ensure Federal Single Audit requirements are identified, monitored, and completed within required deadlines. Finance staff will maintain a schedule of applicable federal reporting and audit requirements, monitor federal expenditures throughout the fiscal year, and coordinate with the Borough's auditors to ensure Single Audit requirements are identified and addressed timely. The Finance Director will provide oversight of this process and ensure required documentation and filings are completed within applicable deadlines. These procedures are expected to fully resolve this finding during FY2026. Expected Completion Date: June 30, 2026.

2025-002: Reporting Type of Finding: Noncompliance, Material Weakness Condition: The School did submit their audit for the fiscal year ending June 30, 2025 timely. The audit was submitted September 15, 2026, which was 168 days past the March 31, 2026 deadline. Action plan in response to the finding: The Principal will ensure that all required audit documentation is organized, complete, and readily available to the auditors upon request. This includes maintaining updated financial records, supporting documents, reconciliations, and schedules throughout the fiscal year so that materials can be provided promptly during the audit process. To support timely completion of the annual audit, the Principal will formally request the 2026 audit to be completed by March 31, 2027. This timeline allows adequate opportunity for fieldwork, review, and finalization of the audit report. The Principal will monitor progress, respond quickly to auditor inquiries, and verify that the final audit report is submitted within the required timeframe. Repeat Finding: No. Planned completion date for a corrective action plan: For the period ending June 30, 2026. Name of the contact person responsible for corrective action: Marie Rose, Principal | Ard Bizahaloni, Acting Business Manager

Condition and Context: The District did not establish controls to identify and monitor applicable federal reporting requirements associated with its federal awards. As a result, the District did not submit its Single Audit reporting package to the Federal Audit Clearinghouse by the required deadline of March 31, 2026. Recommendation: The District should establish procedures to identify applicable Federal compliance requirements upon acceptance of Federal awards, monitor cumulative Federal expenditures to determine when a Single Audit is required, assign responsibility for monitoring reporting deadlines, and maintain a compliance calendar to ensure timely submission of all required Federal reports and the Single Audit reporting package. Contact Name: Carrissa Anderson, Business Administrator Corrective Action Planned: The District accepts the recommendation and will improve internal controls over reporting. The District has added this to our annual calendar to ensure proper reporting to the Federal Audit Clearinghouse. Anticipated Completion Date: Immediately.

Name of Contact Person: Rhys Winter, Manager Corrective Action Plan: The Borough has engaged accounting resources and staff with the appropriate time and expertise to expedite the completion of future financial reports. Completion Date: March 30, 2027

Recommendation: The Organization should implement an effective monitoring system to keep track of the compliance calendar, which includes financial reporting deadlines, and automatic reminders in advance of each deadline to aid in properly planning and timing submission of reporting packages. Additionally, the Organization should engage the audit firm well before the fiscal year-end. The Organization should establish a timeline with the auditors that aligns with internal deadlines to ensure sufficient time to conduct the audit. Additionally, the Organization should implement a system that will file documents in an organized manner and make them easily accessible to the Organization and auditors. Furthermore, the Organization’s Board of Directors should be more actively engaged in the auditing and reporting process to establish a greater degree of accountability and oversight. Anticipated Completion Date: 05/31/2027 Actions Taken: The Organization has begun implementing the above-mentioned recommendations. The Organization will ensure that it has a working monitoring system of the compliance calendar to assist in meeting the reporting deadline. Additionally, the Organization has already engaged the audit firm for its upcoming fiscal year-end, and the audit firm has put it on its calendar to begin the audit process well in advance. The Organization’s board of directors has agreed to oversee the auditing and reporting processes to a greater extent. They have also begun working on developing a more organized filing system for the Child Nutrition programs’ documents and training staff members about the reporting requirements. With these actions, the Organization expects to comply with the Uniform Guidance for single audits deadline for the fiscal year end August 31, 2026. Rabbi Yanky Bodenheimer, executive director, has been designated to monitor the plan of corrective action for this finding. He can be reached at 845-425-4880. Contact Person Responsible for Corrective Action: Yanky Bodenheimer, Executive Director.

Views of Responsible Officials and Planned Corrective Actions: The City acknowledges that the fiscal year 2025 reporting package was not submitted within the required timeframe. The delay was affected by the late completion of the prior year audit, which caused the subsequent audit process to being behind schedule. Following a change in City management, the City is establishing an audit preparation schedule, organizing supporting documentation throughout the year, assigning responsibility for coordinating audit requests, and maintaining regular follow-up with the auditor. The City will make every reasonable effort to ensure future audit reporting packages are completed and submitted with the established deadline.

The corrective action plan for the internal control material weakness, timely reporting (2025-003), is summarized as follows: Corrective Action Planned: The previous auditor was not responsive and the organization had to engage with a new auditor. Going forward, the League has a process in place for timely audit completion and submission. Anticipated Completion Date: End of audit process, September 2026. Responsible: Management and Board of Directors.

An untimely reporting package and DCF are result of various factors to include the City’s astringent calendar in completing conversion of finance module in Munis (ERP) in concert with gaps in external accounting support. This annual requirement, per 2 CFR Section 200.12(2), was not met; however, the City is committed to submitting this package to the Federal Audit Clearinghouse within nine months after fiscal year end.

Late Submission of the Data Collection Form and Reporting Package to the Federal Audit Clearinghouse Management position. Management concurs that the fiscal year 2025 submission was not made by the deadline established in 2 CFR 200.512(a). Management response. The revised finding correctly identifies this as an entity-wide Single Audit reporting matter covering all Federal agencies included in the SEFA, states the March 31, 2026 deadline, and reports no questioned costs. Management accepts the late-filing condition and will submit the fiscal year 2025 package promptly after issuance. The reporting calendar and actions below address the recurring causes reflected in the prior-year findings. The recovery target is not an extension of the regulatory deadline. Continuity with Finding 2024-002. The FY 2024 CAP committed to improved external and internal control procedures to support FY 2025 Single Audit reporting, with a March 31, 2026 completion target. The recurring FY 2025 finding demonstrates that timely submission was not achieved under that commitment. Management retains the original commitment in its status record. The October 31, 2026 recovery target and the FY 2026 reporting milestones strengthen that earlier action through named roles, a detailed calendar, weekly readiness reviews, and retained submission evidence; they do not replace or extend the missed deadline. Finance will document work actually performed under the prior plan and why it did not result in timely submission. Corrective Action 1. Designate the Auditee Certifying Official, backup official, submission editor, and audit liaison. Confirm active Login.gov access and Federal Audit Clearinghouse roles before the reporting deadline. 2. Maintain a master Single Audit calendar using the earlier of 30 calendar days after receipt of the auditors’ reports or nine months after fiscal year-end. Include internal deadlines for closing, SEFA, notes, draft statements, legal review, audit fieldwork, management responses, package assembly, certification, and submission. 3. Use a completion checklist to verify that the PDF contains the financial statements, SEFA and notes, summary schedule of prior audit findings, auditors' reports, and corrective action plan; that the SF-SAC workbooks agree to the reporting package; and that the public PDF excludes PII. 4. Submit the fiscal year 2025 reporting package promptly after final issuance, retain both certifications and the FAC acceptance record, and distribute the package to each pass-through entity as required. 5. Escalate missed internal milestones monthly to the Mayor. A delay by one workstream will trigger a documented recovery schedule rather than postponement of the overall process. 6. Maintain a weekly readiness checklist until the overdue FY 2025 package is accepted. File promptly upon receipt of the issued reports, even if a finding remains disputed or an ASR limitation remains unresolved. Carry the auditors’ findings and questioned costs as issued; include management’s response separately and preserve subsequent agency correspondence. Implementation Milestones Required Action Owner Completion Evidence Target Date Confirm FAC roles, access, and submission checklist. Finance Director Access roster and completed readiness checklist Sep. 30, 2026 Submit FY 2025 package after final report issuance. Auditee Certifying Official FAC acceptance and certification records Oct. 31, 2026 or earlier Approve FY 2026 Single Audit calendar and PBC schedule. Finance Director Approved calendar and status tracker Oct. 15, 2026 Complete FY 2026 submission by regulatory deadline. Auditee Certifying Official FAC acceptance dated no later than deadline Mar. 31, 2027 Responsible official. Héctor Rubén Caraballo Díaz, Director of Finance Anticipated completion. October 31, 2026 is the internal recovery target for the overdue fiscal year 2025 submission; submit promptly upon issuance and earlier whenever possible. This target is not an extension of the March 31, 2026 regulatory deadline. For fiscal year 2026, submit within 30 days after receipt of the reports or by March 31, 2027, whichever occurs first. Evidence of completion. The fiscal year 2025 package is accepted by the FAC; the SF-SAC agrees to the reporting package; certifications and distribution evidence are retained; and the fiscal year 2026 submission is completed within the period required by 2 CFR 200.512(a).