Corrective Action Plans

7.   Monitoring and Reporting:

·      Implement a monitoring system to track progress in real-time.

·      Generate regular reports to assess the status of financial reporting and address any issues promptly.

8.   Corrective Action Plan Documentation:

·      Clearly outline the corrective action plan in response to the auditor’s recommendation.

·      Ensure that the corrective action plan addresses the root cause and includes steps taken to prevent recurrence.

9.   Management Review:

·      Conduct periodic management reviews to ensure ongoing compliance with the revised financial reporting process.

·      Address any emergency challenges promptly and make to further enhance the financial reporting process.

By following this action plan, the organization can enhance its financial reporting process

establish a robust internal control, and foster a culture of timely submission, thereby mitigating the risk of noncompliance with federal regulations and ensuring the timely and accurate

submission of required financial information to grantor agencies.

Findings and Questioned Costs Relating to Federal Awards: Late Single Audit Submission, Reporting Management submitted single audit reports up to fiscal year 2022. In order 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 expects to achieve full compliance of pending Single Audit reports’ issuance on or before August 2024.

Please see the plan for 2022-003. These actions will address this �inding and will have a direct impact on the accurate reporting in the SEFA and SESA as well as compliance with the uniform guidance.

Action Taken/to be Taken: ProsperityME has an accounting manager hired as of 1/5/2023. The accounting manager has taken over bookkeeping and accounting duties full time as of 6/1/2023. This person has extensive experience with nonprofit accounting, and GAAP standards. ProsperityME is actively recruiting for another part-time accounting specialist to support the accounting manager to ensure appropriate staffing levels for the fiscal department. This will ensure timely fulfillment of auditor requests.

Recommendation: We recommend the board of directors and management ensure that the audit and data collection forms are completed timely and the data collection form and required reported package are submitted electronically to the FAC each fiscal year going forward. Action Taken: We agree with Finding 2022-002 described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company will ensure the data collection forms are submitted electronically to the FAC each fiscal year.

As of June 30, 2023 ECLC now only has 3 employees consisting of the Executive Director, Kathleen Federico, fiscal specialist, Tricia Imbesi and as needed maintenance man, Sean Collins. ECLC’s CFO, Dave Phillips resigned in April of 2022 and ECLC has not been able to fill that position since that time. On March 24, 2023 ECLC went into contract with UHY consultant, Daniel Pendergast, to help with the fiscal process. ECLC continues to struggle and has relinquished its Head Start Grant effective June 30, 2023, and is in the dissolution.

The Township Manager, Joseph Hillan, will review all grants received to be aware of the grant requirements and a spreadsheet will be created to list all grant amounts, dates awarded, dates of expiration and who is the source of funding. This spreadsheetwill be updated on a quarterly basis and reviewed by the Internal Accounting Consultant for accuracy. This spreadsheet will be submitted to the Auditor as a work paper every year.

Management Response: Management agrees with the auditors' finding. Internal controls did not exist during the audit period due to lack of staff in the business office and lack of understanding in the administration staff. The school has since hired a consulting firm to assist with following the existing policies and procedures. The school also has hired an experienced principal to oversee the operations of the business office. Anticipated completion date: June 30, 2023. Responsible party: Delores Noble, principal. Amber Wauneka, Consultant with Homeland Business Services.

2022-005: SFSAC Submission Contact Person – Ryan Lagasse, Business Manager Corrective Action Plan – This finding is noted together with the Board. The District will work to ensure timely submission of the data collection form in the future. Completion Date – The District will work to submit timely for future audit periods.

Finding No. 2022-006 - Audit Requirements for Auditees - Report Submission Condition The data collection form and the reporting package for the year ended on June 30, 2022, was not submitted to the Federal Audit Clearinghouse within the timeframe prescribed by the Uniform Guidance. Corporation response The Corporation agrees with the finding. Corrective Action Plan Upon receipt of the audit findings, we initiated an immediate review of our reporting procedures. We have identified specific areas that require attention and are implementing quick corrective actions to address the identified deficiencies. ■ Policies and Procedures Review - Simultaneously, we are reviewing our existing policies and procedures related to federal awards reporting. This includes a reassessment of reporting tirnelines, data validation processes, and the overall framework for ensuring accuracy and completeness in our reports. ■ Staff Training and Development - Recognizing the critical role of our personnel in the reporting process, we are providing additional training to the individuals involved. This training will emphasize the importance of adherence to reporting guidelines, accurate data entry, and the significance of meeting established deadlines. ■ Communication Protocol Enhancement - We recognize the importance of effective communication regarding reporting processes. To address this, we are enhancing our communication protocols to ensure that all relevant stakeholders are informed of reporting requirements, timelines, and any changes to procedures. ■ Monitoring - The Corporation designated the Financial Planning and Analysis Associate Director in charge of monitoring the compliance with the federal awards reporting requirements. Names of the contact persons responsible for corrective action plan Jesus A. Rodriguez Aviles - Financial Planning and Analysis Associate Director Cecilia Robles Kakiuchi - Financial Planning and Analysis Director Anticipated Completion Date Fiscal Year 2024

The UPR Comprehensive Cancer Center will submit the Single Audit Report FY 2022 and the data collection as soon as the auditors issued the Single Audit FY 2022. The Audited Financial Statements for the corresponding year have been issued on October 31, 2023. We establish a procedure to ensure that information required to be disclosed in the Single Audit is on time. Please find attached the procedure schedule established to ensure compliance by March 31, 2024, that include: Management closing and submission Final Trial Balance to Auditors 12/15/2023. Completion and Delivery to Auditors PBC items 1/15/2023. Distribution of Financial Statement and Single Audit Draft for review (management and Auditors) 1/15/2024. Submission Draft 2/28/2024. Final Issuance of Financial Statement, SIngle Audit, and data collection 3/31/2024.

2022-001 Single audit data collection form not filed by the due date. Recommendation: We recommend the City develop procedure working closely with the audit firm to ensure that the data collection form is filed prior to the due date. Action Taken: The City of Bryant, Arkansas will develop procdures to ensure that the data collection form is filed prior to the due date. Name of person responsible for the corrective action: Joy Black. Anticipated completion date for the corrective action: December 31, 2023

·         Corrective Action Plan: The City has completed submitted its single audit reporting package for fiscal year September 30, 2022 as required by Rule 2 CFR section 200.512 (a) of the Federal Compliance Supplement. The Finance Department understands the reporting requirement. The Finance Department will endeavor to close the City books in a timely manner to facilitate the completion of the annual financial statement audit to allow for the submission of the audit report as required by rule 2 CFR section 200.512 (a) of the Federal Compliance Supplement.

·         Finance will staff its department back to pre-covid19 levels.