Corrective Action Plans

Corrective Action Plan: The Lake County Housing Authority, in its administrative oversight of the North Chicago Housing Authority, acknowledges the finding related to the untimely submission of its audited financial statements to the Federal Audit Clearinghouse and the U.S. Department of Housing and Urban Development Real Estate Assessment Center (REAC), as required under 2 CFR §200.512. The delay resulted from control deficiencies within the financial reporting and audit coordination process during a period of system transition and evolving staffing capacity. These conditions affected the timely preparation of audit-ready financial information and supporting schedules. Management has implemented corrective actions to strengthen internal controls and ensure timely submission of future audits. These actions include the establishment of a formal audit timeline with defined milestones and assigned responsibilities; enhanced year-end close and reconciliation procedures to ensure audit-ready financial data; and the implementation of routine audit status monitoring to track progress and address issues in real time. In addition, the Authority engaged BDO USA to provide technical assistance, system support, and audit readiness consulting to improve financial reporting accuracy and alignment with HUD requirements. These measures address the underlying control deficiencies and establish a sustainable framework to ensure compliance with federal reporting deadlines. Responsible Staff: Executive Director/CEO in coordination with Chief Financial Officer Expected Completion Date: Implemented August 1, 2026; ongoing compliance thereafter

We agree with the auditors' recommendations, and the following action will be taken to improve the timeliness of the financial reporting process. Management will consult with the audit firm and outside CPA firm to develop an agreed upon schedule for the FY 2026 financial reporting process and related audit to meet the Financial Audit Clearinghouse reporting requirement. We will also identify additional training for departmental staff to improve skills and address identified deficiencies. Finally, Management will review capacity constraints and development solutions to improve capacity.

The Organization acknowledges its responsibility to complete required audits and will do so in a timely manner.

The Organization acknowledges its responsibility to complete required audits and will do so in a timely manner.

Name of Contact Person: Meagan O’Neal Management Response: As covered in 2025-001, several years of late audits have inevitably created a lag. With the challenges of a new finance director, Hurricane Helene, 600+ acres of wildfire due to blowdown from Helene, County staff across all departments have been maxed out, including Finance staff trying to balance regular duties, audit fieldwork and disaster related responsibilities. 180 Corrective Action Plan (continued) We completed the FY24 audit at the end of September 2025 and immediately began the FY25 process. With systems implemented over the last two years, we were able to complete all year-end reconciliations and FY25 audit fieldwork in approximately seven months. This has been the most efficient completion of an audit for Transylvania since FY19, reflecting the effectiveness of these changes. Procedures to reconcile subsidiary ledgers monthly have been implemented as an ongoing responsibility of the Finance Director and Accountant to minimize year-end adjustments. The Finance Director has also completed over 50 hours of CPE through the School of Government to support continued process improvement. Communication between the auditor and the County has remained open throughout this period of transition and disaster management. Proposed Completion Date: Immediately.

Additional time was needed to complete accurate fiscal records for the year ended June 30, 2025. Monthly closings and fiscal records reconciliations for the year ending June 30, 2026, are timely being conducted. Timely filing of the Data Collection form for the year ended June 30, 2026 is anticipated.

View of Responsible Officials and Planned Corrective Actions: We plan on verifying that the submission to the Federal Audit Clearinghouse is completed in a timely manner moving forward.

Finding No. 2025-003 – Late Filing of Single Audit Reporting Package Federal Program: Health Center Program Cluster, ALN 93.224 – U.S. Department of Health and Human Services (HHS) Contact Person Responsible for Corrective Action Guillermo J. Jiménez Ramos, Chief Financial Officer Views of Responsible Officials Management concurs with the finding. Corrective Action Planned 1. The Hospital will establish an annual audit readiness timeline working backward from the Uniform Guidance submission deadline (the earlier of thirty (30) calendar days after receipt of the auditors’ reports or nine months after the end of the audit period, June 30). The timeline will include target dates for the completion of year-end closing procedures, the delivery of auditor-requested schedules and supporting documentation, audit fieldwork, review of the draft report, and submission of the reporting package and Data Collection Form to the Federal Audit Clearinghouse in advance of the deadline. 2. Monthly closing discipline will be maintained throughout the fiscal year so that year-end balances, account reconciliations (including patient accounts receivable aging, the allowance for credit losses, and grants receivable), and audit support schedules are substantially complete at year end and available for timely delivery to the auditors. 3. The Chief Financial Officer will monitor the status of the audit timeline monthly beginning in October of each fiscal year, and any delay against the established milestones will require a documented recovery plan to return the process to schedule. 4. The Single Audit Reporting Package and Data Collection Form for the year ended September 30, 2025 will be submitted to the Federal Audit Clearinghouse immediately upon issuance of the final audit report. Anticipated Completion Date October 31, 2026

Financial Statement Findings Finding 2025-001 Lack of Internal Controls over Reporting and Noncompliance Name of Contact Person: Blue Shibler, Executive Director Corrective Action Plan: Now that SCC understands the time required to secure an available audit firm and complete the audit process, SCC will begin audit planning immediately after the close of each fiscal year. The Executive Director will be responsible for identifying and engaging an audit firm as early as possible, promptly providing requested financial records, and monitoring the audit timeline to support timely completion and filling in the future years. Proposed Completion Date: Fiscal Year 2026.

Finding 2025-001 – Noncompliance – Reporting (Repeat) Recommendation: The auditors recommend the Organization implement procedures to ensure the data collection form is submitted within the earlier of 30 calendar days of the audit report being issues, or 9 months after the end of the audit period. Actions Taken or Planned: Management understands the data collection form was not submitted within 9 months of June 30th year end. Procedures will be implemented to make sure the audit is completed prior to the 9 month deadline. Data collection forms will then be uploaded to the Federal Audit Clearinghouse prior to the 9 month deadline or within 30 days of the audit report being issued. Name of Contact Person: Larissa Dickens, Director of Finance Estimated Date of Completion: June 30, 2026

Management agrees with the finding above. Management will review the existing accounting policies and procedures and implement additional controls to validate timely submission of reports.

View of Responsible Officials and Corrective Actions: Management agrees with the finding. Management will establish and implement formal procedures to ensure timely completion and submission of required Federal reporting. Management will develop and enforce a formal month-end and year-end close process that includes defined close deadlines, assigned responsibilities for each close task, a documented reconciliation checklist, and supervisory review controls to ensure the books are closed accurately and on schedule prior to the commencement of the annual audit. In addition to close procedures, management will implement a documented audit timeline aligned with Federal reporting deadlines, including defined roles and responsibilities and monitoring controls to track progress and escalate delays. Management will also enhance process documentation and cross-training to mitigate the impact of personnel changes and support continuity of the reporting process. Contact Persons Responsible: Dr. Sharrone Ward, President and Chief Executive Officer Kim Shelton-Mamon, Vice President of Finance Completion Date: July 31, 2026

Name of contact person: Oliver Bowie, Finance Director Corrective Action: Management will review its internal control procedures to ensure all Single Audits are completed and submitted within the required deadlines. Proposed Completion Date: The Board will implement the above procedure immediately.

Identifying Number: 2025-001 Finding: The data collection form for the year ended June 30, 2025, was filed after the March 31, 2026, deadline, making it a late submission. Corrective Actions Taken or Planned: Envision Unlimited will schedule and complete future external audits in a manner that will allow timely reporting of the Single Audit. Contact people responsible for corrective action is Chris Nordloh, CFO and Mary Ann Livovich-Tomondi, Controller. The anticipated completion date is June 30, 2026.

Finding No. 2025-005 – Late filing of data collection form and reporting package Condition The Authority did not submit the required data collection form and reporting package within the required period by March 31, 2026 (9 months after the end of fiscal year). Views of Responsible Officials and Corrective Actions The Federal Funds Management Office (FFMO) is aware of the deadlines for filing the data collection form and the reporting package, however, as indicated in previous year’s audits, the completion of the required information continues out of their control. In addition, to having difficulties with its monthly accounting closings due to personnel limitations in the Accounting Office, the implementation of new accounting standards, such as GASBs No. 73, N0. 75, No. 87 and others have been additional obstacles to achieve our objective to file the data collection form and reporting package timely. Accordingly, it has not been possible to complete the audit of the financial statements and the single audits for various fiscal years on time, nor to file the data collection form and the reporting packages. In August 2025 and January 2026, the audited financial statements for 2024 and 2025, respectively were issued. Also, the Authority’s management expects to issue the 2026 financial statements during December 2026. Management will continue emphasizing to the FFMO that reports need to be submi􀄴ed on a timely basis. Management will do its best to procure additional personnel for the Accounting and Federal Funds Management Offices. Once a final catch-up of the timely issuance of the audited financial statements is achieved, the required information will be filed within the timeframe established by federal regulations. Name(s) of the Contact Person(s) Responsible for Corrective Action Romel Pedraza Claudio. P.E. – Assistant Executive Director for Planning & Engineering Luis R. Torres Meléndez – Federal Funds Area Officer José Mojica Bonet – Federal Funds Area Officer Anticipated Completion Date Once the Authority catches up with the financial statements’ issuance, the data collection form and reporting package will be filed timely.

Identifying Number: 2025-001 Finding: Untimely Submission of the 2025 Single Audit Reporting Package Corrective Action Plan: The Cooperative acknowledges the finding regarding the untimely submission of the Single Audit reporting package. The delay was attributable to circumstances outside of the Cooperative's control, specifically delays in the completion of the audit by the independent auditors. Nevertheless, the Cooperative recognizes its responsibility for ensuring compliance with federal reporting requirements. To reduce the risk of future delays, the Cooperative will enhance communication and monitoring procedures with its independent auditors throughout the audit process. Management will establish interim status meetings, monitor key audit milestones, and request periodic updates on the auditors' progress to identify and address potential delays as early as possible. In addition, the Cooperative will document these monitoring efforts and maintain a timeline of critical reporting deadlines. Management believes these measures will strengthen oversight of the audit process and help ensure the timely submission of all required elements of the Single Audit reporting package. Completion Date: December 31, 2026

Management will coordinate with external auditors to ensure timely completion of the audit and to ensure compliance with 2 CFR 200.512 requirements.

We will improve our internal control procedures related to record keeping and adjustments in order to ensure compliance with the March 31 federal requirement. Implementation Date: During the 2026-2027 fiscal year. Responsible Person: Mrs. Yadira Pereira Nieves Finance Director

Identify a new Auditing firm with proven experience working with FQHCs and their unique compliance requirements and revenue sources. Hire consultant to oversee the Audit process Engage Hough Consults to serve as the Interim CFO in response to the resignation of previous finance consultant. This consultant will review and address finance/Grants compliance gaps, review policies, create audit compliant month end workflows, oversee hiring of financial team. Hough Consults to train new finance team which includes the permanent CFO, accounts payable staff and NH executive team on new policies and procedures. Audit, Tax filing and Grant deadlines to be tracked by the VP/CFO

Condition – The data collection form was not submitted within the required time as required by 2 CFR 200.512 for the year ended June 30, 2025. Planned Corrective Action – The Agency will take all reasonable measures to work with the new auditors to complete the audit process and submit the data collection report within the required time period. Anticipated Date of Correction – The 2026 data collection form for the year ended June 30, 2026, will be issued to GSA within the required deadline of the earlier of thirty days after issuance of the 2026 audit or prior to March 31, 2027. Point of Contact: James Williams, Fiscal Officer/Program Director

2025-002: Reporting – Submission of the Data Collection Form Information on Federal Programs Federal Emergency Management Agency Assistance Listing Number: 97.036 Assistance Listing Name: Disaster Grants - Public Assistance passed through Florida Division of Emergency Management U.S. Department of Health and Human Services Assistance Listing Number: 93.778 Assistance Listing Name: Medicaid Cluster – Medical Assistance Program Management will implement and maintain the following corrective actions:  Management has added a validation step with a secondary review by another team member to validate that all steps relating to submission have been clearly completed.  Management has also added this to our reporting checklist that is part of the Single Audit Process Narrative. Responsible Party: Controller, under the oversight of the Vice President of Financial Services/Chief Financial Officer, in coordination with the Grants function. Completion date: June 30, 2026

AUDITEE'S CORRECTIVE ACTION PLAN June 23, 2026 U. S. DEPARTMENT OF HEALTH AND HUMAN SERVICES Prairie Opportunity, Inc., respectfully submits the following corrective action plan for the year ended September 30, 2025. Name and address of independent public accounting form: Brown, Ewing & Co., P.A. 308 Highland Park Cove, Ridgeland, MS 39157. Audit period: Year Ended September 30, 2025. The findings from the September 30, 2025 Schedule of Findings and Questioned Costs is discussed below. The finding is numbered consistently with the numbers assigned in the schedule. Section 1 of the schedule, Summary of Audit's Results, does not include findings and is not addressed. Section 3: Findings and Questioned Costs - Major Federal Award Program Audit FINDING 2025-001 FAILURE TO SUBMIT THE DATA COLLECTION FORM AND AUDIT REPORT TO THE FEDERAL AUDIT CLEARINGHOUSE TIMELY Condition: The auditee did not submit the required Data Collection Form (DCF) and reporting package to the Federal Audit Clearinghouse (FAC) within the timeframe mandated by federal regulations. The submission was made after the required deadline of June 30, 2025. Action Taken: Manangement of Prairie Opportunity, Inc. will implement internal administartive contol procedures and policies to ensure that the data collection form and the annual audit is submitted to the federal clearinghouse in a timely manner. If you have any questions regarding this plan, please call me at (662) 323-3397. Sincerely, Tomeka Rhine Tomeka Rhine, Executive Director

VIEWS OF RESPONSIBLE OFFICIALS The Puerto Rico Department of Education (PRDE) acknowledges the late submission of the Data Collection Form and Reporting Package for the fiscal year ended June 30, 2025, and recognizes the importance of timely compliance with 2 CFR §200.512(a)(1). The PRDE respectfully offers the following additional context regarding the factors that contributed to the delay, several of which were outside the Department's control. First, the PRDE acknowledges that the reconciliation of expenditures related to certain federally funded disaster recovery programs administered outside the Department — specifically the CDBG-DR (ALN 14.228) and Disaster Grants – Public Assistance (ALN 97.036) programs — presented recurring challenges. Information regarding these expenditures is provided to the PRDE by external program administrators, and the data received did not always arrive with sufficient clarity to allow the Department to perform the corresponding adjustments to the SEFA without additional follow-up and clarification. Second, and as the principal factor affecting the submission timeline, the 2025 OMB Compliance Supplement was not released until November 2025, substantially later than its customary release date and later than in prior audit cycles. The Department's external auditors communicated to the PRDE that audit testing of major programs could not begin until the Compliance Supplement was available, since it establishes the compliance requirements and audit procedures applicable to each major program. As a direct consequence of this delay, which is publicly documented and affected single audits nationwide, the available window to complete required testing was substantially compressed, and an extension of the submission deadline was requested due to the limited time remaining to perform the necessary audit procedures. The PRDE notes that while it continues to strengthen its internal procedures for accumulating and reconciling SEFA-related information — particularly for programs administered by external entities — the timing of the late submission for this audit cycle was significantly influenced by the delayed availability of the Compliance Supplement, a circumstance affecting auditees and auditors broadly and not unique to the Department. IMPLEMENTATION DATE Fiscal Year 2026-2027 RESPONSIBLE PERSON Evelyn E. Rodríguez Cardé, MBA Director of Finance

Recommendations: The Organization should 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. - Assigning responsibility for tracking and ensuring timely submission of reports. Additionally, the Organization should conduct a root cause analysis to address any underlying issues and implement corrective actions to prevent future delays. Views of responsible officials and planned corrective actions: Management agrees with the finding and will implement processes to mitigate the risk of future late file reports. Anticipated Completion Date: June 2026

The auditor recommends that the Village ensure compliance with the 9 month requirements and have the audits and single audit reporting package submitted by the end of February each year.