Corrective Action Plans

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.

·         Finance will develop a formal calendar driven year-end books of accounting records closing. schedule with a six month after fiscal year end completion date (March 31).

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 December 31, 2023. Plan to Monitor Completion of CAP: The Board of Directors will be monitoring this corrective action plan.

The Authority did not receive in a timely manner the information from the Employee Retirement System of the Commonwealth of Puerto Rico to properly recognize the pension liability, delaying the issuance of the financial statements. The Central Government, throughout the Department of Treasury has established a task force in order to maximize the efforts to timely issue the actuarial valuation report from the Employee Retire System and the Audited Financial Statements of the Commonwealth of Puerto Rico, which will provide to the Authority with the corresponding information in a timely manner. Additionally, the Authority is not exempt of the lack of resources resulting in delays in the process. The Authority expects to issue and submit the 2023 financial statements and single audit reports by June 2024. For subsequent fiscal years the Authority expect to issue its financial statements and single audit reports, within the established due date.

Management has taken corrective action to ensure timely submission of the annual audit report to Federal Audit Clearinghouse in compliance with submission requirements.

On September 15, 2023 the Housing Authority entered into an agreement to retain the services of a new, experienced fee accounting firm to assist with monthly and year-end financial reporting, audit preparation and staff development. Financial reporting and audit preparation for FY 2023 began at fiscal year-end in preparation for timely audit submission. Development and mentoring plans for new staff are in place and ongoing.

Views of Responsible Officials and Planned Corrective Actions: We agree with this finding and have implemented the following internal control policies and procedures concerning the timeliness of financial activities: Rainbow Health Minnesota is reimplementing monthly board meetings that will include a financial review of income and expense reports and balance sheets. The lateness for the 2022 audit was partially due to staff turnover of the CFO and the subsequent review by the new Finance Director. Responsibility for administering this process resides with the Finance Director

The contractors hired to do the accounting and payroll functions are no longer under contract with the Housing Trust. All financial functions are now being taken care of in-house. The financials are already in the process of being adjusted and all numbers being accounted for with documentation. This will continue through 2023 and in 2024, the chart of accounts will be changed to reflect the current practices for a nonprofit organization. As the Executive Director prepares the 2024 budget, a reorganization of the business operations department has started. Staff changes will also need the Business Operations manager to provide a thorough monthly review. The current administrative assistant will take on the role of accounting technician to handle the day-to-day QuickBooks-related processes. Work has already started to develop checks and balances. Corrective Action Plan Timeline: Immediately Designated Employee Responsible for Corrective Action: Business Operations Manager

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.