Corrective Action Plans

Finding: The Single audit package was not submitted to the Federal Clearinghouse within the required time period. Corrective Actions Taken or Planned: Rev. Josh Attaway, CFO is responsible for the corrective action. In 2022 the auditors were not able to assign a team to work on the single audit until after the deadline for submission had already passed. In the future, St. Luke's will identify the need for a Single Audit earlier in the year to ensure that a team of auditors is asigned to complete the audit prior to the deadline for submission. In 2023, if a Single Audit is required, it will be complete and submitted by the September 30 deadline.

Finding 2022-003: 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 December 31, 2022. Corrective Action: Prepare reports prior to due dates in case there is a computer issue. If a report is late, request an exception/extension in writing to file with report. Contact: Evelyn Vargas, Grants Compliance Manager Expected Completion Date: 11/30/2023 If you have any questions, please contact Evelyn Vargas at 713-472-0753 or by email at evargas@tbotw.org.

Management has historically submitted their financial statements to the federal audit clearinghouse in a timely fashion. Unfortunately, due to new reporting requirements such as the lease accounting standards we were not successful in achieving timely submission for the annual audit report. Management and their audit firm are currently adjusting planning procedures and strategy to ensure timely submission of the annual audit report in the future.

2022-003 – Late Submission of Uniform Guidance Report Cluster: Not applicable Federal Granting Agency: All federal agencies represented on the SEFA Award Name: All awards on the SEFA Award Year: All awards on the SEFA CFDA #: All awards on the SEFA CFDA Title: All awards on the SEFA Pass-through entity: All identified on the SEFA Management’s Response: Management is in agreement with the recommendation as stated above. The audit for this fiscal year was unique and is not indicative of the typical audit process and timeliness of LPCH. Corrective Action Plan: Complete subsequent audits in a timely manner consistent with previous year. Leadership Responsible: Melanie Davidson, Vice President and Controller, who can be reached by email at mdavidson@stanfordchildrens.org

Action Taken: NICAA has parted ways with previous auditors, O’Connor & Brooks. NICAA has contracted with WIPFLI to standardize our internal controls and financial reporting. WIPFLI follows the Generally Accepted Accounting Principles (GAAP) standards more closely than previous auditors. In 2024, NICAA will be working with WIPFLI to update internal controls and financial recording policies and procedures. Management and the Board of Directors will remain involved in the financial affairs of Northwestern Illinois Community Action Agency by providing oversight and independent review of financial reporting and accounting procedures.

Views of Responsible Officials: As detailed in our Policy and Procedure document Mary's Center has developed a detailed pre-audit process to ensure our formal-year end closing occurs with no issues. In preparation for our annual audit, all accounts will be reconciled prior to the beginning of the audit period using a detailed workflow. The workflow includes a formalized checklist and workplan with the following tasks that need to be completed:  Patient Receivable Schedule Reconciliation  Patient Revenue Reconciliation  Asset and Liability Accounts Reconciliation Views of Responsible Officials (continued): Pre-Audit reconciliation efforts and adherence to the workflow will be co-led by the Assistant Controller, Director of Grants, and Director of Revenue Initiatives and reviewed by multiple levels of leadership. In addition, to combat the growth of our organization and additional regulations we have implemented or are in the process of implementing the following activities at Mary's Center:  Employed an experienced Grant director to oversee the grant department and optimize productivity and quality;  Actively enlisting the services of an experienced Finance Consultant to perform an assessment of the entire Finance department including current process and staffing needs;  Invested in technologies such as Sage Intacct ERP (industry leader) to replace manual processes;  Budgeted for additional Finance staffing in our upcoming annual budget to combat current capacity issues. Collectively, these processes and staffing updates will ensure Data Collection Forms are submitted timely going forward.

Internal Control over Timely Filing of Data Collection Form PiPE will work with accounting consultants and audit contractors to file required financial reports in a timely manner, and will work internally with programs for narrative reports to be filed timely.

Management’s Corrective Action Plan: The Organization agrees with this finding. The Organization is aware of reporting deadlines outlined in the Federal Clearing House 2 CFR 200.512, however, due to extenuating circumstances, the audit submission was delayed.

Finding 2022-003 - Compliance Requirement: REPORT - Submitting audit report package and data collection to Federal Audit Clearinghouse (FAC) no later than 30 days after date of audited financial statements Management's View: Management acknowledges responsibility in reporting all data collection dates set by reporting requirements. Proposed Corrective Action: - Management to communicate with outside accountant (Tony Labrado) to ensure audit is run on a timely basis Anticipated Correction Date: Management has begun communication with accountant for better handling of information.

Finding 2022-005 – Reporting (Compliance; Internal Control Over Compliance) Condition: The School District did not complete and submit their audit to the Federal Audit Clearinghouse by the due date of March 31, 2023. Recommendation: We recommend the School District become familiar with reporting requirements for each award and implement procedures to begin audit preparation work earlier in the fiscal year to ensure reports are filed within the nine-month reporting deadline set forth by Uniform Guidance. Views of Responsible Officials: The District was notified late by their audit firm that they would no longer be providing audit services. The District hired a replacement firm but was unable to complete the audit in accordance with the Clearinghouse guidelines. The District is retaining the current audit firm with anticipation of the report for the 2022-23 fiscal year being issued and filed on a timely basis.

Accounting and Financial oversight has been transferred to The Carle Foundation (Carle) that acquired this entity in October 2022. All accounting and financial processes now have oversight by the Carle leadership team with specialized processes in place for various issues such as grant compliance, taxes, payroll, and other reporting deadlines.

Finding 2022-005 Late Reporting and Noncompliance with Reporting Requirements Name of Contact Person: Tracy Bye, CFO Corrective Action Plan: Replace CPA firm. Proposed Completion Date: The transition away from BDO (CPA) to Rulien (CPA) has already occurred.

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

Sapphire Community Health has contracted with an accounting and consulting firm to review records and procedures and to make recommendations for future use in June 2023 and have already begun implementing recommendations.

We are working in implementing adequate internal control procedures in order to comply with the submission of all required information for the Single Audit for Fiscal Year 2023.

The Board Chairman concurs with the findings. The School District was dealing with a shortage of auditors in Montana and the audit started late. Documentation issue was due to the key employee turnover prior to August 2022.

Responsible Official’s Response and Corrective Action Plan In 2022, the Federal Award manager at Associated Black Charities departed mid-year, leading to considerable confusion among the existing management. As we transitioned into 2023, the entire management team underwent changes, resulting in the loss of crucial knowledge about the existing filing system from previous years. With the introduction of new leadership, we are now poised to implement fresh policies and procedures to address our succession planning needs. These updated protocols will outline the process for filing essential information and its specific location, ultimately expediting the audit process. Planned Implementation Date of Corrective Action December 2023 Person Responsible for Corrective Action Travis Curtis, Director of Finance

Management concurs with this finding. ABC continuing administration leadership is in transition with a new Interim CFO and Controller. ABC will submit audits in a timely matter by training staff and update their financial system training. This will improve the monthly reconciliations and financial reporting.

2022-001: Audit Report Submission to the Federal Government Corrective Action Plan: The Board has hired a contract accountant to assist the Accounting Manager in the timely financial close to report and audit preparation to ensure timely completion of their financial and compliance audits. Anticipated Completion: December 31, 2023 Responsible Party: Tamie Wick, Accounting Manager. Amy Terrell, Airport Director.

Management Response The School management will ensure that all the quarterly 425 reports and the Single Audit reporting package are completed, submitted, received, and accounted for by the School and finance office and secured for further reference. Anticipated Completion Da te November 30, 2023 Responsible Party Kenneth Toledo-Principal, Paulette Atencio-Business Manager, Deann Bahe-Payroll Clerk and Veronica J. Sandoval-Human Resource.

The Village notes that the delay in single audit report submission is attributed to its misidentification of a Federal award, which it originally believed to be a State award. Propspectively, the Village will ensure all awards are properly categorized and engage a CPA firm to perform its Single Audit in a timely manner

The delay in submission of the single audit report arose from a delay in completion of the audit. The City's strategy to address this delay in completion of the audit includes prompt reconciliation of account balances, especially the bank account balanes, before we commence the final audit in November of each year. The City recently hired a temporary staff who is mainly focused on assisting with speeding up the bank reconciliation process which will ultimately ensure that the year-end close is completed on time for the final audit. The corrective action will be fully implemented during the Fiscal Year 2023/2024 audit. the contact persons for this corrective action are Adrienne Morales (Accouting Supervisor), Stephen Ajobiewe (Finance Manager), and Matthew Schenk (Director of Finance) for the City of Perris.

Audit Period: June I, 202I through May 3 I. 2022. Audit Finding No.: Finding 2022-00 I: Late Filing of Audit Report Audit Finding Title: CFR section 200.5 I2(a) requires the reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of30 calendar days after the reports are received from auditors or nine months after the end of the audit period. Northwest Montana Head Start, Inc's audited financial statements for the year ended May 31,2022 were due to the federal single audit clearinghouse by February 28, 2023. Specific steps to be taken to correct the situation (including a timetable for performance of the CAP) or reason why corrective action is not necessary (including disagreement with the finding):. Steps taken: Fiscal training on deadlines. Increased communication with the audit team. Increased expectations of audit timeline. Anticipated completion date: 05/09/2023 Name(s) and Title(s) of contact person(s) responsible for corrective action: Marcy Otten, Director Kristin Brunetto, CFO

The late filing of the DCF was caused by delays resulting from the Executive Director’s family leave during the year. This employee is responsible for providing backup documentation and as a result, the documentation was not available for the audit process. This was a one-off circumstance that has been resolved and our procedures will prevent this late filing from happening in the future.

Recommendation: We recommend that Osage Heights Senior Housing, Inc. develop specific procedures to ensure that the data collection form is filed within 30 days after the audit report is received. Action Taken: Osage Heights Senior Housing, Inc. will develop procedures to ensure that the data collection form is filed before the due date. Name of responsible person responsible for corrective action: Brad Bailey Anticipated completion date for the corrective action: October 15, 2023