Corrective Action Plans

Date: 2/14/2024 CORRECTIVE ACTION PLAN Uniform Guidance Audit 2022-001 United Community Centers (UCC) is in the process of merging with Cypress Hills Local Development Corporation (CHLDC), an established community-based nonprofit organization. The merger will help strengthen the financial operations of UCC including the timeliness of the submission of the Audited Financial Statements to the Federal Audit Clearinghouse within 9 months of the end of the fiscal year. We anticipate the merger to take place before 12/31/2024. CH LDC is currently assisting UCC with their back-office operations. CHLDC's CFO, Gaudi Polanco-Mendoza, CPA will be responsible for closely monitoring this process going forward. New and stronger financial procedures have already been implemented and we anticipate timely submissions by 12/31/2024. Michelle Neugebauer, Interim Executive Director United Community Centers

The audit firm used by the Foundation for 30+ years notified the Foundation in summer of 2022 that it would no longer be able to provide local audit staff. After many conversations with the firm it was agreed that they would perform the annual audit and single source audit remotely with staff from first Madison and then Chicago. All of the audit materials and trial balance were uploaded from the Foundation to the audit firm in October 2022. The final audit was not completed until August 2023. In order to improve the timeliness for the annual audit, the Foundation has engaged a local audit firm for subsequent audits.

The Village of Elizabeth agrees with this finding. The Village will attempt to meet reporting package and data collection form deadlines.

Finding 2022-004 Deadline for Federal Single Audit – Reporting – Noncompliance and Material Weakness in Internal Control over Compliance Planned Corrective Actions: The Finance Department is working to establish internal deadlines to ensure the financial statements are audited within the appropriate reporting deadlines. The department is aware that the FY23 financial statements will also be faced with this finding, but is shifting 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.

View of Responsible Official and Corrective Action Plan Heading Home management is in agreement with this finding. After years of turnover in key management positions steps have been taken to address staffing challenges and these positions have been successfully staffed with high-quality individuals who bring extensive knowledge and expertise to their roles. These positions include a new Chief Executive Officer, Director of Operations, Chief Financial Officer, and Director of Human Services. To address challenges in accounting and finance Heading Home has contracted with a local CPA firm specializing in nonprofit accounting and financial reporting to assist the CFO with daily accounting tasks, the monthly close, financial reporting to management and the board of directors, and to facilitate and ensure audits are completed timely each year. The new management group is committed to maintaining a skilled and competent team in key financial roles. Heading Home’s accounting team is in the process of preparing for the 2023 audit and anticipates the audit to be completed by June 30, 2024. While this will once again result in a late filing, the new management team has made significant strides in a short amount of time and anticipates that the 2024 and all future audits will be submitted on or before the March 31st due date. Management anticipates the above corrective action plan to be fully implemented by June 30, 2024. Personnel responsible for ensuring implementation include Connie Chavez, Executive Director, Debbie Brickman, Chief Financial Officer, and Armando Sanchez, contract accountants team lead.

Federal Assistance Listing Number: 93.959 Block Grants for Prevention and Treatment of Substance Abuse Condition The Organization’s Data Collection Form submission to the Federal Audit Clearinghouse was not filed on time within nine months of the end of its fiscal year. Views of Responsible Officials and Corrective Action The Organization has implemented a system that identifies the source of each funding stream. This system allows for early determination of the need for a federal single audit.

Action Taken: During 2023, Range Mental Health Center, Inc. and Subsidiaries had experienced turnover in key financial functions. In addition, we were notified that current independent audit firm would no longer be performing the 2023 financial and single audits. In response to this we have outsourced its CFO function. We have also engaged a new independent audit firm, as this was a first-year audit there was an acclimation period delaying many processes. As a result, we anticipate an improvement in timeliness of our financial records.

Finding: 2022-004: Material Weakness in Internal Controls over Compliance – Single Audit Report Submission Name of Contact Person: Shema Jones CFO Catholic Community Service 1803 Glacier Highway Juneau, AK 99801 CCS will work with its audit firm to ensure the audit is submitted in a timely manner. Proposed Completion Date: 6/30/24

Views of responsible officials and planned corrective actions: The audit report on the financial statements for the year ended December 31, 2022, was issued on Jan 31, 2024. The Data Collection form and reporting package will be submitted within 30 days thereafter.

CCEOC advertised for audit services in January 2023 and did not receive a response. After consulting with our Board, recommendations were made to directly solicit capable firms. CCEOC was able to engage a new firm in April 2023. Due the unfamiliarity with the organization, voluminous amounts of information was required, creating a number of challenges to our part-time accounting staff.

Year Ended December 31, 2022 Contact – Randy Willard, New Director of Finance Telephone Number – (410)-733-9113 Completion Date – First Quarter of 2024 Information on Federal Program(s) U.S. Department of State Name of Program: Program to End Modern Slavery Assistance Listing Number: 19.019 Grant Award Number: S-SJTIP-17-CA-1018/S-SJTIP-18-CA-1014/ S-SJTIP-18-CA-3035 Grant Award Period: October 1, 2017 to June 30, 2022, October 1, 2018 to December 31, 2022, October 1, 2021 to September 30, 2024 Management’s Corrective Action Plan: With the stabilization of staffing and improved timeliness of the monthly close of the financial records, accompanied with monthly reconciliation of accounts, we expect streamlined and efficient preparation of year-end records for the 2023 external audit. We plan a much shorter total period needed to complete the 2023 external audit and as a result a timely submission of the data and information to the Federal Audit Clearinghouse.

The School System does not concur with the auditor’s findings and recommendations. The fiscal year 2022 single audit was not completed for the auditors to provide a final report to certify in the Federal Audit Clearinghouse within the specified timeframe as noted in the Uniform Guidance in 2 CFR Section 200.512. This is the first time that our auditors have not entered the appropriate information into the data collection form for us to certify. In the future, we will provide reminders as the date approaches in time to meet the deadline. BDO Response – We have reviewed management’s response and our finding remains as indicated, the School System did not have the established controls to ensure the reporting package is submitted to the FAC annually within the required timeframe.

Program: U.S. Department of Health and Human Services, Award Listing Number 93.498. Planned Corrective Action: Management will implement a process to monitor filing deadlines for all future government funds received under emergency funding assistance programs (when enacted) to ensure compliance with filing requirements. Person(s) Responsible: Jenny Antony, Chief Financial Officer and Diana Conelli, Controller Expected Completion Date: March 18, 2024

Recommendation: Marshall Jones recommends that the Organization establish a process to close their year-end books in a timely manner and begin the audit well in advance of the filing deadline for the data collection form and reporting package. Views of Responsible Official and Planned Corrective Actions: The Future Foundation formally accepts the audit finding as presented and is actively working to correct the issues identified in the audit. Subsequent to year end, this work included the restructuring of the Organization, including its board of directors. Future Foundation will establish a process to close their year-end books timely and begin the audit well in advance of the filing deadline for the data collection form and reporting package. Sincerely yours, Ronnette V. Smith Chief Executive Officer

The City transitioned auditors during 2023 and as a result was unable to complete its audit timely. The City intends to meet the September 30, 2023 filing deadline for its December 31, 2023 Federal Single Audit.

Contact Person David Drapeaux Corrective Action Plan The district will complete the fiscal year 2023 audit requirement on or before the March 31, 2024 deadline. Going forward the audits will be completed on time and this finding will be resolved. Completion Date March 31, 2024

Daviess Community Hospital continues to stay focused and committed to timely receipt of interim financials from its nursing home partners. Daviess Community Hospital will commit to review and monitor nursing home financials/support in order to have improved oversight with its nursing home partners

2022-004 – All Federal Programs – Compliance – Data Collection Form Finding: For the fiscal year ended September 30, 2021, the Village did not submit the data collection form to the Federal Clearinghouse by the required due date of June 30, 2022, in accordance with the federal requirements. Correction Action: The Village will ensure the data collection form for the fiscal year ending September 30, 2023 is submitted before the required due date of June 30, 2024. Responsible Parties: Village Administrator, Community and Economic Development Coordinator and Accounting Department. Anticipated Completion Date: June 2024

Finding 2022-002 Late Reporting and Noncompliance with Reporting Requirements Type of Finding: Significant deficiency, noncompliance Name of Contact Person: Willard E. Hand Corrective Action Plan: The huge influx of funding from the federal government has placed a financial burden on all tribes, including our own. The added responsibility of administering and reporting on these funds resulted in less time for audit preparation and we were late in securing an auditor and submitting our report. Multiple COVID-19 surges also occurred in our community so our offices were closed sporadically during the year, taking time away from audit preparation. We have also found longer lead times in trying to secure an auditor in a timely manner. With so many more entities in the State receiving enough funds to qualify them for a single audit, auditors are booking several months in advance. We are working to eliminate the insufficiency securing an auditor to complete the FY23 report in a timely manner. Proposed Completion Date: September 30, 2023.

Management is taking measures to provide reporting package and data collection form for the 2023 audit by the September 30, 2024 deadline.

Finding 2022-006: Timely Submission of the Data Collection Form Condition: The Authority submitted the data collection form more than nine months after the end of the audit period. Plan: The Authority has experienced significant turnover in its Finance department over the past year. A new Controller has been hired and additional resources have been acquired to ensure the timely submission of future audit reports. The Authority has engaged outside consultants to train staff on procedures related to audit preparation. Employee Responsible for the CAP: Danita Childers, Executive Director Planned Completion Dates for CAP: March 2024

Management agrees with the finding. The necessary reports will be filed as soon as they are available.

Management Response and Corrective Action The Finance Department will implement additional internal controls to manage the financial statement process in a timely manner as recommended.

MANAGEMENT HAS STARTED WORK ON THEIR 2023 AUDIT PREPARATION AND WILL ENSURE THAT IT IS SUBMITTED TIMELY.

Finding Number: 2022-01 The University failed to timely submit the 2022 reporting package [2 CFR §200.512(c)] required by Government Auditing Standards and Uniform Guidance per 2 CFR §200.512(a)(1) A. Comment on Finding and Recommendation We concur with eh finding and recommendation of the auditor. This has been an extraordinary period of immense disruption that has delayed completion of the 2022 SFA audit. The University has never been late in submissions of its audit reporting package. B. Actions Taken or Planned. We are adopting procedures to ensure we have two persons with authority to communicate with the Department of Education and furthermore, we are establishing in house record depositories and will adopt appropriate checklist to ensure historic records will be promptly available. We are scheduling work on our 2023 audit. We are confident our 2023 reporting package will be submitted early, and this problem will not recur. C. Status of Corrective Actions on Prior Findings. No prior findings.