Corrective Action Plans

2023-005: Reporting Type of Finding: Noncompliance, Material Weakness Condition: The School did submit their audit for the fiscal year ending June 30, 2023 timely. The audit was submitted August 16, 2024, which was 138 days past the March 31, 2024 deadline. Action planned in response to finding: Management will implement procedures to ensure that all audit documentation, is available for the audit in a timely manner and the audit report is completed and submitted within the appropriate timeframe. Repeat Finding: Similar to prior year finding 2022-004. Planned completion date for corrective action plan: June 30, 2024 Name of the contact person responsible for corrective action: Dolores Silva, Chief Financial Officer

Finding #2023-001 Prior 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: R.J. Barrett Manor Housing Development Fund Company, Inc. 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 Kyle Lyskawa, Chief Financial Officer, at (315) 424-1821.

Finding 2023-005: Late Submission of June 30, 2023, Audit Report Federal Programs ALN: 93.575, 93.596, 93.558 Criteria: The Organization is required to file its audit report each year to the Federal Audit Clearinghouse within nine months after the end of fiscal year in accordance with 34 CFR 200.512. Condition: The Organization did not file its fiscal 2023 report to the Federal Audit Clearinghouse within nine months after the end of fiscal year Cause: The Organization experienced employee turnover in key managerial and accounting roles causing delays in close out and completion of the audit. Effect: The Organization did not meet the submission requirements as set forth by 34 CFR 200.512. Recommendation: We recommend the Organization closely monitors this important submission requirement to avoid missing the deadline. Corrective Action Plan: Management has taken corrective action to ensure timely submission of the annual audit report to Federal Audit Clearinghouse in compliance with submission requirements. Responsible Party: Jenny Longo, CFO Anticipated Completion Date: March 2025

Identifying Number: 2023-001 – Late Audit Reporting Finding: The audit, data collection form and reporting package for the Organization for the year ended June 30, 2023, should have been submitted to the Federal Audit Clearinghouse by March 31, 2024. Corrective Actions Planned or Taken: The Organization will schedule and complete future external audits in a manner that will allow timely reporting. Responsible Official: Rebecca Leininger, Executive Director Anticipated Completion Date: March 31, 2025

Finding 2023-002 – Material Weakness Program: Federal Highway Works Administration - Highway Planning and Construction Cluster The delays in the commencement and completion of the audit, as well as the material misstatements and excessive year-end closing journal entries, were primarily due to significant turnover in our finance department during the fiscal year and the financial closing process. Effect of Condition: We acknowledge that these issues led to material adjustments identified through the audit procedures, which significantly delayed the audit process Corrective Action Plan: 1. Enhanced Accounting Processes: o StanCOG is in the process of reviewing and strengthening internal controls to ensure that all assets, liabilities, revenues, and expenses are properly recorded and reported in a timely manner. o StanCOG is implementing a more robust financial closing process, ensuring proper application of accounting principles to all financial closing accounts and processes. 2. Staffing and Training: o StanCOG has brought in new staff with an education and background in accounting principles. o StanCOG has begun the recruitment process to fill the vacancies in the finance department with qualified personnel. o StanCOG has retained experts in Financial Metropolitan Planning that will assist with cross-training staff. o StanCOG will continue to provide finance team members with training, tools, and resources to continue to educate the finance team to help mitigate material weaknesses in the department going forward. 3. Internal Review and Monitoring: o StanCOG will institute a monthly internal review process to identify and correct any discrepancies promptly. o StanCOG will monitor the financial closing process closely to ensure timely and accurate completion. o StanCOG will review and revise existing accounting policies and procedures to reflect updates as necessary. Timeline for Implementation: • Recruitment and onboarding of new finance staff: By in-progress - Ongoing • Completion of cross-training programs: By August 2024 - Ongoing • Full implementation of enhanced accounting processes: By October 31, 2024

Finding Number: 2023-005 Reporting - Compliance and Internal Control Summary of Finding: CFR Section 200.303, Internal Controls, Section (a) states the Organization must establish and maintain effective internal control over federal awards that provides reasonable assurance that the Organization is managing the federal awards in compliance with federal statutes, regulations, and terms and conditions of the federal award. Management is responsible for establishing and maintaining a system of internal control that should include controls over its reporting process. 2 CFR section 200.512(a) states that the data collection form and reporting package must be submitted the earlier of 30 calendar days after receipt of the auditor’s reports or nine months after the end of the audit period to the Federal Audit Clearinghouse (FAC). If the due date falls on a Saturday, Sunday, or federal holiday, the reporting package is due the next business day. The Uniform Guidance does not have a provision addressing whether the cognizant or oversight agencies may extend due dates. During the fiscal year, we noted that the Organization failed to submit the data collection form and reporting package to FAC on a timely basis. Response to finding: We agree with the finding. Corrective Action: The retaining of a new audit firm for the FY2023 audit, the departure of key staff and reorganizational issues, winding down of Heartland Alliance and spin-off of entities into their own companies all have prevented the timely filing this year. Each new spin-off company will now be responsible for their own Financial Audit and Heartland Alliance is winding down and will not require any further audits. Individual(s) Responsible for Corrective Action Plan: o Name: Robin Armour o Title: Interim Chairman of the Board o Email address: robin@amdcapital.com o Anticipated Completion Date: March 31, 2025

Finding 2023-001 Late Reporting and Noncompliance with Reporting Requirements Name of Contact Person: Anita Fuller, Finance Director Corrective Action Plan: FY23 Audit onsite work has been completed and is still pending review. FY24 Audit has been scheduled in two part. Testwork is scheduled for the week of September 30, 2024. With the final review in November. Upper-level staffing positions have been filled which will allow for work to be fulfilled in-house. Proposed Completion Date: Immediately

Finding 2023-003 (Repeat finding, prior year finding 2022-004) The organization did not issue its single audit reporting package until August 2024. Management's view: Management acknowledges its responsibility for meeting critical reporting deadlines and agrees with recommendations for improving its compliance with reporting deadlines. In reviewing the obstacles that led to not complying with such deadlines multiple protocols have been implemented to prevent such a delya. Proposed Correction Action: to address matters proactively, Management has implemented the following protocols to ensure reporting deadlines are properly adhered to: Management has hired consultants specialized in the non-profit sector to provide oversight and ensure the organization complies with all reporting requirements on a timely basis.Management will continue to strehgthen and formalize its monthly closing process so that end-of-year reporting is less burdensome. Accounting staff with experience in record retention and electronic filing have been retained and all participate in ongoing cross-training so that each is capable of covering the various duties carried out within the accounting department. Accounting Staff have begun utilizing a scan=and-attach feature of the accounting software package. Saving electronic copes of documents will make the record retention process more efficient. Physical filing of documentation will continue to serve as a backup system. Attaching each scanned document to a specific transaction within the accounting software system should make the documentation more accessible. Anticipated Correction Date: The measures have been initiated and are expected to be completed by November 1, 2024. Management anticipates the fiscal year 2024 audit will be completed ahead of the required deadline.

Finding #2023-001 Prior 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: Bessie Riordan Addition 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 Kyle Lyskawa, Chief Financial Officer, at (315) 424-1821.

Finding #2023-001 Prior 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: Carpenter 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 Kyle Lyskawa, Chief Financial Officer, at (315) 424-1821.

VIEWS OF RESPONSIBLE OFFICIALS & CORRECTIVE ACTION PLAN: Management will begin the single audit process as soon as possible when the books close. Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Actions Planned in Response to Finding: The Organization will implement the recommendation. Officials Responsible for Ensuring CAP: The Organization’s appointed staff member is the official responsible for ensuring corrective action. Planned Completion Date for CAP: The planned completion date for the CAP is June 30, 2024. Plan to Monitor Completion of CAP: The Board of Directors will be monitoring this corrective action plan.

In November 2023, a Controller, Hannah Pawlowski, was hired and in July 2024 a Chief Financial Officer, Veronica Koller, was hired to bring the needed staff on hand to ensure that the financial statement and single audits for the period of June 30, 2024, are completed in time necessary to submit the data collection form within the earlier of 30 days after receipt of the auditor’s report or nine months after the end of the audit period.

REPORTABLE NONCOMPLIANCE WITH FEDERAL REPORTING REQUIREMENTS – ALL FEDERAL PROGRAMS AWARDED UNDER THE UNIFORM GUIDANCE 2023-006 Federal Reporting Deadline Finding Summary 2 CFR Part 200, Subpart F, § 200.512(a)(1) requires the Academy’s audited SEFA and federal reporting package to be submitted to the federal audit clearinghouse within the earlier of 30 calendar days after the receipt of the auditor’s report(s), or 9 months after the end of the audit period. The Academy’s audited SEFA and federal reporting package for the fiscal year ended June 30, 2023, were not submitted to the federal audit clearinghouse within 9 months after the end of the audit period. Corrective Action Plan Actions Planned – The audit of the Academy’s SEFA for the year ended June 30, 2023 was not completed within the nine-month reporting period. The completion of the Academy’s audited annual financial statements for the year ended June 30, 2023, which is a required component of the federal reporting package, was delayed beyond the 9 month deadline pending obtaining sufficient audit evidence. Academy management will ensure that all information required to comply with federal reporting requirements will be completed and submitted in a timely manner going forward. Official Responsible – The Academy’s Executive Director, Farhiya Einte. Planned Completion Date – June 30, 2024. Disagreement With or Explanation of Finding – The Academy agrees with this finding. Plan to Monitor – The Academy’s Executive Director, Farhiya Einte, will monitor the year-end financial closing and reporting process to ensure all federal and state reporting requirements are complied with in the future.

In connection with those identified in 2023-001 and 2023-002, Management has established a rigorous procedure for reviewing and implementing controls to ensure that all contracts from the consolidated organizations are reviewed by designated personnel, guaranteeing full compliance with reporting requirements.

CSS management will improve staffing and internal controls to ensure compliance with the timely reporting requirements stated in 2 CFR §200.512.

We increased our accounting capacity in late August 2023, and that staff member is now trained up. We have also contract with an outside consultant to see if we can streamline some of our processes and to see if we need additional capacity or a reallocation of tasks within the finance team. This increased capacity will give us the ability to better prepare and respond to auditor questions in a timelier fashion. We hope to complete our FYE June 2024 audit by November 30, 2024. Anticipated Completion Date: June 30, 2024 Responsible Contact Person: David Maloney, Shelter House Controller

The Board of Directors will designate an individual to document financial statement preparation processes which ensure timely submission of the Single Audit Reporting Package.

Finding 2023-001: Data Collection Form and Single Audit Reporting Package Finding: The Organization did not comply with the required submission date of the data collection form and reporting package to the FAC for the fiscal year ended June 30, 2023. Corrective Action: Prepare reports prior to due dates. If a report is late, request an exception/extension in writing to file with the report. Contact: Michele Blasey, Controller Expected Completion Date: 3/31/25

Corrective Action: NTU experienced key personal turnover during which affected the start and completion of the audit. NTU has developed a comprehensive year-end financial close and annual federal reporting plan as part of this plan, NTU will ensure that financial accounting books and records are reconciled and closed in a timely manner prior to providing the final trial balance to the auditor. Person Responsible: Beverly Miller, Accounting Manager and Harshwal & Company, LLC Estimated Completion Date: July 31, 2024

Audit Finding: 2023-002 Corrective Action Plan: Management acquired the services of an outside firm to address the deficiencies in the records and to correct and establish a system to prevent further occurrences of late reconciliations and untimely reporting. Persons Responsible: Jolyana Kroupa, Chief Executive Officer and Cindy Macz, Financial Administrative Assistant Estimated Completion Date: June 30, 2024

2023-004 – Late Audit Report Corrective action plan: Management implemented correction of this finding in early 2024, after stabilizing the staffing of the accounting department. Beginning with the March 2024 close, each month has been closed timely with reconciliation of all key accounts. Personnel responsible for corrective action: Timothy Jodway, Interim Chief Financial Officer; Peg Clark, Grant Accountant; Reyann James, Senior Accountant. Estimated corrective action completion date: March 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. Action taken in response to finding: The Authority will implement a year-end closing process to ensure all accounts are properly reconciled. Due to the delay in receiving the prior year audits, the Agency was unable to submit a timely and accurate current year audit. The Authority has now recently filled several accounting positions, implemented multiple internal controls, policy and procedures over financial reporting as well as changed audit firms to increase financial efficiencies and timeliness. Name of the contact person responsible for corrective action: Dontrelle Young Foster, Executive Director Planned completion date for corrective action plan: We expect to have the finding resolved by March 31, 2025.

The County’s Fiscal Year 2022 Annual Comprehensive Financial Report was issued June 6, 2023. However the Fiscal Year 2022 Single Audit report was not issued until August 31, 2023. Effective immediately through this corrective action plan, County Finance Department management (Ajay Gajjar) requests the independent auditors to perform Single Audit interim testing during the summer in order to avoid delays in issuing the Single Audit.

Finding 2023-003 Late Reporting and Noncompliance with Reporting Requirements Name of Contact Person: Kimber Mikulecky, Finance Director Corrective Action Plan: Management will carefully review report deadlines and ensure that submission of reports is made before they are due. Management will also carefully review reporting requirements and ensure that requirements are adhered to. This includes the following program: National Forest Receipts- Municipal & Regional Assistance. Proposed Completion Date: Fiscal year 2024

Findings and Questioned Costs Relating to Federal Awards: Late Single Audit Submission, Reporting Management submitted Single Audit reports up to fiscal year 2023. To address the root cause for this finding, management performed the following actions: • Management audit contracts are followed up directly by CFO to ensure timely execution to ensure audits are timely completed and planned. • Management enhancements to the finance function, such as accounting closing checklists, accounting closing meetings and reconciliation processes, among other actions, should improve the timing of audit results. Additional resources (consultants) were hired to assist in the audit process to ensure external auditors have information on a timely basis. In order to ascertain that basic and recurrent information requested by auditors is ready, management prepared an updated list of information normally requested and prepared a OneDrive (cloud backup storage) where all information will be archived and ready to be delivered to the auditors as requested. This should provide the efficiency and agility to response to auditors in a timely manner. Management successfully completed late Single Audit submissions with this 2023 Single Audit Report. With this filing, DDEC is up to date in its regulatory reports. Furthermore, with the process enhancements and improved controls implemented, DDEC expects to continue filing on or before filing due dates.