Corrective Action Plans

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.

Identifying Number: 2023-002 Finding: Late Issuance of 2023 Single Audit Reporting Package Corrective Actions Taken or Planned: The Center will issue the single audit reporting package after the external audit is completed. Our single audit was performed timely, however, the purposeful delay of the external audit impacted our ability to finalize. Contact Persons(s) Responsible for Correction Action: Katie Berg, CFO Completion Date: October 30, 2024

CHAG management has worked with the audit team to create a time line for the next audit cycle to ensure that all future audits are completed and filed not later than the 30th of April.

1. A master calendar with key due dates will be prepared for each program as well as the overall organization 2. Weekly meetings will be held with Program Directors with a standard agenda item of upcoming due dates within the subsequent four weeks. 3. During these meetings, Directors will be required to provide status updates and draft submissions when applicable. 4. Once a quarter, a federal compliancerequirement will be selected to have a deep dive review. 5. An HQ Administrative Assistant will be hired to monitor compliance and will prepare a monthly report for the Executive Director’s review

September 25, 2024 “Corrective Action Plan” To whom it may concern, This Corrective Action Plan to ensure the audits are filed timely with the Federal Clearing House: We will ensure that the financial statements be prepared timely in order for the outside auditor to have the opportunity to complete the audit timely. The financial statements and all requested supporting documentation will be completed and provided to the auditor within 45 days after the close of the fiscal year This will be monitored by the board chair for the organization, Mr. Walter McDowell to ensuring that that the financial information is ready for the audit to be completed. Mr. McDowell has shared the plan with the board of directors. This plan will be implemented immediately and be in place for the next fiscal year end. If there are questions regarding this plan please contact: Robert Patrick CFO Harambee Community Development Email: bob@rpcomp.com Tel. 201.341.4552 Cc: Easter Parks – CEO Harambee Family Academy Walter McDowell – Board Chair

Access, Inc. has recently employed a CFO with extensive experience with the Department of Labor grants and contracts, to assist with the accounting process and to ensure the books are closed in a timely fashion and the reporting package to be submitted to the Federal Audit Clearinghouse.

Finding 2023‐003 – Material Weakness, Material Noncompliance – Reporting (Repeat) Name of Contact Person: George Czerwionka, Director of Finance Corrective Action: Management understands that the data collection was not submitted within 9 months of June 30th year end. Procedures will be implemented to make sure the audit is completed before the 9‐month deadline. Data collections will then be uploaded to the federal clearing hours before the 9‐ month deadline or within 30 days of the audit report being issued. Proposed Completion Date: March 31, 2025