Corrective Action Plans

The Organization is increasing its efforts to ensure that its policies and procedures are in place to ensure timely submission of reports. Completion Date: Estimated December 2025. Contact Person: Daniel Kevin Finney - Chief Financial Officer - 3529 7th Avenue South Birmingham, AL 35222 205-324-9822 finney@aidsalabama.org

The Organization is increasing its efforts to ensure that its policies and procedures are in place to ensure timely submission of reports. Completion Date: Estimated December 2025. Contact Person: Daniel Kevin Finney - Chief Financial Officer - 3529 7th Avenue South Birmingham, AL 35222 205-324-9822 finney@aidsalabama.org

Finding 2024-001 – Material Weakness – Accounting Discipline and Recordkeeping Condition During the audit of the fiscal year ending June 30, 2024, Impact Services Corporation and Affiliates‘ (the “Corporation's”) management was unable to provide timely year-end trial balances in accordance with U.S. GAAP. An accurate year-end trial balance was not provided in a timely manner, and management continued to make a significant number of adjustments after the year-end trial balance had been provided to the auditors, resulting in significant time by management and the auditors to complete the audit. As a result, the fiscal year 2024 financial statements were not finalized in time to meet the deadlines noted in 2 CFR Section 200.512(a)(1). In addition, during the audit it was discovered that certain account balances and transactions were not properly recorded in the prior year, resulting in a prior period adjustment to correct the beginning balances as of July 1, 2023. While reconciling accounts payable and accrued expenses as of June 30, 2024, management discovered that the accounts payable balance was incorrect dating back to 2023. The Corporation changed accounting software packages during the year ended June 30, 2023 and during the transition of accounting packages, an accounts payable balance totaling $390,229 transferred into the new software. The invoices representing this balance were also entered into the accounts payable module and transferred into the general ledger module, resulting in a double recording of the accounts payable balance and overstatement of expenses by $390,229 in fiscal year 2023. Recommendation We recommend that management continue to review and update the Corporation's policies and procedures to ensure that the trial balance is accurate throughout the year. Account reconciliations and supporting schedules should be prepared and reviewed on a monthly basis. The accounting books and records should be closed timely at year end and thoroughly reviewed. Management’s Corrective Action Plan In February 2025, a new Chief Financial Officer was hired and immediately launched a full evaluation of the Accounting and Finance department. Her efforts have included restructuring staff, restarting the fiscal year 2024 audit, implementing new financial policies, and launching a credit card purchasing system with embedded controls. Within six months, she has established new internal controls, enhanced financial reporting, and introduced staff training protocols. To remediate the material weakness, the Corporation has implemented the following initiatives: • Month-End Close Process: July 2025 marked the first successful month-end close, anticipated to be completed on August 22, 2025. This included key reconciliations, journal entries, and revenue-expense reporting. • Department Structure and Documentation: We are refining processes and documentation using technology and talent to promote transparency and accountability. • Leveraging Technology: o Ramp: Enables real-time spend controls, customizable virtual cards, and automated receipt matching. It enforces policy compliance, prevents unauthorized purchases, and supports audit readiness. o NetSuite ERP: Streamlines operations and decision-making through automated, real-time reporting, ensuring consistent and accurate insights across departments. We affirm our alignment with the auditor's recommendations to ensure trial balance accuracy, monthly account reconciliations, and timely year end closings. These practices are now embedded in our financial operations and supported by enhanced review protocols. The Corporation is confident that these corrective actions will fully address the material weakness and position the Corporation for sustained financial health, transparency, and compliance. Contact Person: Richonda Pelzer, Chief Financial Officer Anticipated Completion Date: March 31, 2026

the Town has recently hired a new Cmptroller who will be overseeing all internal financial controls and processes, including the supervsion and preparation of timely annual SEFA reporting

In response to the audit finding regarding federal reporting requirements, we have developed a structured calendar and timeline that outlines all target dates and deliverables to ensure full compliance moving forward. This timeline includes clearly defined reporting deadlines, assigned responsibilities for each deliverable and internal checkpoints to monitor progress and ensure timely submission.

Recommendation: The Organization should establish and implement formal procedures to ensure timely submission of its single audit reporting package to the Federal Audit Clearinghouse. Planned Corrective Actions: The Organization is in the process of filing the delinquent single audit reporting packages with the Federal Audit Clearinghouse. In addition, the Organization has assigned the responsibility for filing the single audit reporting package to its Chief Financial Officer and has developed a compliance calendar to track the submission deadline. If there are any questions regarding this corrective action plan, please contact Jill Barnes, Chief Financial Officer, at (843) 747-2273.

Name of auditee: THF San Gabriel Holdings, LLC HUD auditee identification number: 115-11319 Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended December 31, 2024 CAP prepared by Name: Allison Milliorn Position: Chief Executive Officer Telephone number: 830-693-8100 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Finding 2024-001: Comments on the Finding and Each Recommendation: For the year ended December 31, 2023, the Company did not submit the Data Collection Form (SF-SAC) to the Federal Audit Clearinghouse in the time period required by Uniform Guidance Section 2 CFR 200.512. Action(s) taken or planned on the finding: The Data Collection Form was submitted to the Federal Audit Clearinghouse on May 10, 2024 and management will submit the Data Collection Form timely going forward.

May 27, 2025 Person responsible: Sam Rivera, Executive Director Fiscal Year Ended June 30, 2024 Section III – Federal Awards Findings and Questioned Costs Item 2024 – 001 Federal Assistance Listing Number: 93.243 HIV Emergency Relief Project Grants Substance Abuse and Mental Health Services Projects of Regional and National Significance Condition The Organization’s Data Collection Form was not submitted to the Federal Audit Clearinghouse within the nine-month period for the year ended June 30, 2024. Views of Responsible Officials and Corrective Action Additional time was needed to complete accurate fiscal records for the year ended June 30, 2024. Monthly closings and fiscal records reconciliations for the year ending June 30, 2025, are timely being conducted. Timely filing of the Data Collection form for the year ended June 30, 2025 is anticipated.

Finding 2024-002 Finding: The Organization has not timely submitted the Single Audit Reporting Packages for the year ended December 31, 2023. Planned Corrective Action: The Organization will submit the Single Audit Reporting Packages for the year ended December 31, 2024 in accordance with 2 CFR 200.512(a)(1). Responsible Contact Person: Barbara Ewing, Chief Executive Officer

The City has a Grants Administrator on staff that monitors and advises when reports are due to external entities. SOP’s are being reviewed with staff for implementation. This activity is ongoing. Responsible Party: Ms. Niema Gantt, Finance Director, and Ms. Yesly Guillen, Grants Administrator The above corrective action plan is expected to be implemented in the next 12 months.

Finding: 2024-002 Improper Approvals of Payroll Name of contact person: Vince Collins, Executive Director Corrective Action: the Organization started its formal approval process for pay raises and pay changes during 2025. As a part of the Organization’s remediation they created formal agreements and pay raise letters for approvals. Proposed Completion Date: Before September 30, 2025, the Organization’s 2024 audit period single audit submission deadline.

Finding: 2024-001 Single Audit Completion and Submission Name of contact person: Vince Collins, Executive Director Corrective Action: The Organization started its remediation of its accounting closing processes during 2025. Timely and accurate accounting records will ensure the timely completion of future reporting requirements for the Organization. Proposed Completion Date: Before September 30, 2025, the Organization’s 2024 audit period single audit submission deadline.

Berkshire Training and Employment Inc. had to change auditors for FY24. The change in auditor was due to the previous auditor no longer providing auditing services, necessitating procurement of a new auditor for FY24. Difficulty in procuring a new auditor caused delays in the current audit. Management has signed an engagement agreement with the current FY24 auditor for single audit FY25. Management does not anticipate any delays for Single Audit FY25.

Recommendations: We recommend that the Authority strengthen its internal controls and improve oversight of the audit process to ensure timely completion and submission of future reports. Additionally, the recipient should work closely with the audit firm to establish clearer timelines and ensure that any delays are addressed promptly Authority Response: Leadership recognizes the federal award finding and questioned costs and is already moving forward with a systems change to ensure timeliness of completing the necessary processes with the annual audit.

By expanding our internal and contracted accounting capacity and updating internal controls and accounting processes to include these new roles in the monthly and annual workflow, the Organization will be in better position to perform timely reconciliations and adjustments to federal grant activity, ensuring timely filling of the data collection form and single audit package.

Finding #2024-001 Current Year Reporting Package and Data Collection Not Filed Timely: Recommendation: We recommend that management implement procedures to ensure that reporting packages and data collection forms are filed timely in the future. Action taken: Rome Mall Apartments agrees with the auditor’s recommendations and will implement procedures to ensure timely filing in the future. For questions regarding this corrective action plan, please contact Kyle Lyskawa, Chief Financial Officer, at (315) 424-1821.

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.

Views of Responsible Officials and Planned Corrective Action Plan: Management acknowledges the late submission and concurs with the recommendation to strengthen internal controls over the financial close process. The Foundation has begun implementing a corrective action plan focused on addressing staffing constraints and enhancing internal processes to support timely completion of the annual Single Audit. This includes hiring additional accounting personnel and refining financial reporting procedures to improve efficiency and ensure compliance in future reporting cycles.

2024-004: Reporting Type of Finding: Noncompliance, Material Weakness Condition: The School did submit their audit for the fiscal year ending June 30, 2024 timely. The audit was submitted September 15, 2025, which was 168 days past the March 31, 2025 deadline. Action planned in response to finding: Management will implement procedures to ensure that all audit documentation, is available for the audit in a timely manner and the audit report is completed and submitted within the appropriate timeframe. Repeat Finding: Similar to prior year finding 2023-005. Planned completion date for corrective action plan: June 30, 2025 Name of the contact person responsible for corrective action: Dolores Silva, Chief Financial Officer

Finding 2024-001 Corrective Action: We have evaluated the operations of the business office and are in the process of reorganizing our FloQast software to include all balance sheet accounts with check-off reconciliation lists to be assigned to bookkeeping and accounting staff for monthly reconciliations. These assigned tasks will be tracked and signed off by the Finance Director and the Chief Financial Officer to keep all staff accountable. Person Responsible: Interim CFO - Bruce Tyler and Finance Director - Jason Phillips Timing for Implementation: Complete and caught up by October 15, 2025

The School will ensure information is available for the audit to be completed timely in accordance with Uniform Guidance requirements.

2024-003 a. Contact person responsible for corrective action: Steve Reed, Chief Financial Officer b. Description of corrective action to be taken: Management has implemented a staffing plan, established an audit preparation calendar, and added monitoring controls to ensure timely completion of financial statement audits and submission of the Data Collection Form. The CFO is responsible for oversight, and these procedures were put in place beginning September 2025 to prevent recurrence. c. Anticipated completion date of corrective action: Ongoing.

Heart of Kansas is going to implement a timeline for future audits. The year end is February. HOK will wrap up year-end postings and adjustments with a goal to be completed by April 15th. HOK will then have Forvis Mazars Group (consultants) review end of year postings and adjustments for accuracy. The review process will have a completion date of June 15th. HOK will then target July/August as a month for Pinion Global to complete the audit.

The draft audit of June 30, 2024, was completed August 12, 2025. There was not sufficient time to complete the audit and data collection for fiscal year 2024 within the required timeframe, March 31, 2025. The audit of June 30, 2025, will be completed and submitted to the Federal Clearinghouse within the required timeframe.

Finding 2024-001 Federal assistance listing number and name: 10.415 Rural Rent Housing Loans Awards numbers and years: 2024 Federal agency: United States Department of Agriculture Compliance Requirement: Activities allowed or unallowed, allowable costs/ cash management, eligibility, equipment, period of performance, procurement, program income, reporting, special tests Questioned Costs: None Name of contact person and title: Pat Bishop, President Condition and Context: The auditee did not submit the required audit reports to the Federal Audit Clearinghouse (FAC) and Rural Development (RD) in a timely manner. Specifically:  The 2023 Audit Report was not submitted to the FAC as required under 2 CFR Part 200, Subpart F.  The 2024 Audit Report was submitted past the regulatory deadline to both the FAC and RD. Management Response: Management plans to develop and implement an internal audit compliance calendar with clearly defined submission deadlines for all audit-related deliverables, including due dates for the FAC and RD and Create an internal checklist and sign-off process to confirm that each audit deliverable has been submitted to all required agencies and portals. Status: In progress Anticipated Completion Date: Estimated 2025