Corrective Action Plans

Views of Responsible Officials: Management has made significant changes in staffing and processes to ensure future Single Audit reports are completed within the required timeframes. Name and Title of Responsible Official: Oliver Rivers, Chief Operating Officer Anticipated Completion Date: September 30, 2026

The Organization is actively recruiting qualified candidates to fill vacant finance positions to strengthen its accounting and financial reporting functions. Filling these positions will help ensure that year-end financial reporting, audit schedules, and the Single Audit are completed in a timely manner and submitted to the Federal Audit Clearinghouse by the required deadline.

MANAGEMENT HAS STARTED WORK ON THEIR 2025 AUDIT PREPARATION AND WILL ENSURE THAT IT IS SUBMITTED TIMELY.

Finding 2024-002 Late Reporting And Noncompliance With Reporting Requirements Name of Contact Person: Robin Stepetin, Finance Manager Corrective Action: The city has retained an audit preparation accountant to assist with year-end closing activities and audit preparation. Management will implement a reporting calendar that identifies key deadlines, assigns responsibilities, and includes periodic monitoring to ensure information requested by the auditors and other required financial reports are completed and submitted on time. Proposed Completion Date: December 31, 2026

All outstanding audits have been completed. Audits will be conducted annually and completed within six months following the end of each calendar year to ensure ongoing compliance and timely submissions.

2024-001 Reporting – Late Report Submission to Federal Audit Clearinghouse and HUD Recommendation: Develop internal controls that provide month-end and year-end accounting close milestones that include deadlines that will ensure external reporting deadlines are able to be met. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to the finding: The Authority has reviewed and updated its financial reporting and closing processes and controls for the preparation of the final trial balances and related schedules. As part of this process, the Authority has created a year-end checklist with deadlines and status meetings to monitor the progress. Name(s) of the contact person(s) responsible for corrective action: Lowel Kruger, Executive Director. Planned completion date for corrective action plan: December 31, 2024.

VIEWS OF RESPONSIBLE OFFICIALS To resolve this finding, the Government of Puerto Rico is transitioning to a new Enterprise Resource Planning (ERP) system. This new government-wide financial system is scheduled for a live launch in July 2026. This modern platform will provide the PRDF with the capability to produce all required SEFA preparation for Single Audits in a more agile and reliable manner. By streamlining data collection and fiscal reporting, this system will ensure that the Department meets all federal audit requirements on time. Action Steps: 1. ERP Implementation & Go- Live – Successfully migrate PRDF financial data to the new ERP system by July 2026 to automate the generation of accurate financial statements and SEFA reports. 2. Protocol Development & Review – Develop new "Audit Readiness & Submission Protocols" and conduct a comprehensive review of existing fiscal closing procedures to ensure alignment with federal submission deadlines. 3. Automated SEFA Generation – Utilize the ERP's built-in reporting functionality to ensure that all federal expenditures are automatically tagged, categorized, and consolidated into a ready-to-audit SEFA. 4. Internal Control Standardization – Establish formalized internal controls requiring the reconciliation of accounting records to the SEFA on a monthly basis, ensuring data is "audit-ready" well before the fiscal year-end. 5. Staff Training – Conduct mandatory training for all financial staff on the new ERP reporting modules and the regulatory requirements of 2 CFR §200.512 to prevent recurrence of this repeated finding. IMPLEMENTATION DATE During Fiscal Year 2026-2027 RESPONSIBLE PERSON Yessenia Peña Díaz Assistance Secretary of Administration

Corrective Action: The Foundation acknowledges that the 2024 single audit reporting package was not submitted by the September 30, 2025 deadline under 2 CFR 200.512. This delay resulted directly from the challenges detailed in Finding 2024-001. Significant accounting turnover delayed year-end reconciliations and SEFA preparation. The Foundation has implemented substantial corrective actions to address root causes and ensure future timeliness. As outlined in the response to Finding 2024-001, comprehensive SOPs now govern financial close, revenue/deposit processing, reconciliations, payroll, fiscal sponsorship financial management, and fund setup. These promote consistent monthly GL reconciliations, accurate/timely transaction recording, strong documentation, and efficient inter-departmental coordination. Supporting improvements include standardized monthly reporting, system integrations reducing manual work, clear responsibilities and timelines in SOPs, and emphasis on procedural continuity to mitigate transition risks. The Foundation is completing remaining 2024 items and committed to submitting the package promptly. With the enhanced control environment, the 2025 close and audit will be completed well within required timelines. Ongoing training, procedure reviews, and oversight by the Finance Director and Fiscal Sponsorship Manager will sustain compliance. By these actions, the Foundation has remediated the conditions and is positioned to meet all future single audit deadlines while maintaining strong fund stewardship. Person Responsible: Justin O’Shea, Finance Director Completion Date: Corrective action was completed as of December 31, 2025

February 2, 2026 Person responsible: Diane Spann, Executive Director Fiscal Year Ended June 30, 2024 Section III – Federal Awards Findings and Questioned Costs Item 2024 – 001 Federal Assistance Listing Number: 93.600 Head Start 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 Additional time was needed to complete accurate fiscal records for the year ended June 30, 2024. The Data Collection form for the year ended June 30, 2024 will be submitted as soon as the financial statements has been finalized.

Reporting – Data Collection Form and Reporting Package (Significant Deficiency) U.S. Department of Education Adult Education – Basic Grants to States (Federal Assistance Listing #84.002) Federal Award Year: 2023-20 Responsible Officials Contact Information: 1) Archana Jayaram, CEO Telephone 718-310-5626 ajayaram@wearebcs.org 2) Jodi Querbach, COO Telephone 718-310-1015 jquerbach@wearebcs.org View of Responsible Officials and Corrective Action Plan: Management agrees that the single audit reporting package was not submitted within the required timeframe due to key employee turnover coupled with staffing challenges subsequent to year end. This was also after a period of time when the organization’s finance functions were externally managed by an accounting firm. The former firm held the general ledger data for BCS and has been slow to turn it over in a manageable manner causing the delay in filing of the single audit report package. Frank Lei (current Chief Financial Officer) was hired in February of 2025 and has actively hired a new internal finance team, including a controller Daniel Pensante, hired in March of 2025. In our new configuration, BCS will: 1) own its financial software and data, 2) be sufficiently staffed to run its day-to-day financial operations, 3) be able to support program operations in an efficient manner, and 4) be able to respond and complete audits on time. Management will ensure that the single audit report package is submitted before the March 31, 2027 deadline.

Views of Responsible Officials and Planned Corrective Action The Organization concurred with the prior year (2023-004) and current year renumbered recommendation (2024-004), acknowledging that the unexpected resignation of the former independent auditor (January 2023), and the domino effect of a delay in securing a new independent auditor (April 2023) continue to challenge the Organization, however, the Organization notes the status and progress of the following single audits: • June 30, 2022, filed in the Federal Audit Clearinghouse (FAC) in February 2025. • June 30, 2023, filed in the FAC in March 2026. • June 30, 2024, final review by Board in progress, projected filing in the FAC in June 2026. • June 30, 2025, engagement field work in progress with projected filing date no later than September 2026. • June 30, 2026, engagement letter signed with scheduled field work to commence after the June 30, 2025, audit FAC filing; projected to be completed with related FAC filing, no later than March 2027. The Organization notes the corrective actions that have been implemented, regarding internal controls to ensure compliance with the Uniform Guidance with respect to the submission deadline of single audit reports and the Data Collection Form: A. Internal Controls in Practice Since Inception of New Auditor Engagement – April 2023. As noted in the prior year corrective action response, the Organization established internal compliance controls related to the timely submission of single audit reports. Such process and review controls are implemented by the director of administrative operations, chief of staff (since December 2024), and chief executive officer; and subsequently communicated to the Board finance sub-committee and full Board, including the documented Board action(s) taken (e.g., Board agenda, minutes). B. Financial Policies and Procedures – May 2025. By May 2025, the Organization completed financial policies related to: implementation of significant accounting policies, internal control environment, cash and banking, cash disbursements and check issuance, payroll processes, procure to pay and revenue recognition policies, processes and procedures. Note the internal control policy of the Organization documents process and review controls, which were already in practice, applying to the timely filing of single audit reports. The current practices of the Organization, to the present period of the report dated June 17, 2026 is consistent with established process and review controls for timely submission of single audit reports.

The Boys and Girls Clubs of Southcentral Alaska has contracted with a national accounting firm, Fohrman and Fohrman, to reconcile the 2025 books and implement a simpler accounting structure. There will still be significant findings in 2025 as the organization ultimately closed due to financial instability. The new system will be implemented in 2026. Fohrman and Fohrman will continue on contract to ensure adequate financial reporting and reporting to the Board.

Schedule of Corrective Action Plan For the Year Ended June 30, 2024 Finding 2024-004: Significant Deficiency in internal Controls and Noncompliance Over Reporting Responsible Official’s Response and Corrective Action Plan We concur with the findings. We acknowledge the importance of adhering to the federal guidelines for the submission of the reporting package within the mandated nine-month period. To address this, BCI will implement the following actions: 1. Policies and Procedures Development: We will create and enforce comprehensive policies and procedures to ensure that audits are initiated and completed promptly. This will include detailed timelines and checkpoints to monitor progress throughout the audit process. In addition, we will adhere to a year-end closing process that reconciles all significant accounts. 2. Training for Grant Administration: We will provide training for individuals responsible for administering federal assistance programs within BCI. This training will cover essential aspects of grant administration, ensuring that our team is well-equipped to manage these programs efficiently and in compliance with federal requirements. Planned Implementation Date of Corrective Action Plan September 1, 2024 Person Responsible for Corrective Action Plan Caryn York, President & CEO

Audit Finding: Late Issuance of the Single Audit Reporting Package. The Single Audit package for the City’s fiscal year ended June 30, 2024 was not submitted to the Federal Audit Clearinghouse by March 31, 2025. Corrective Action: Management agrees with the finding. The City is evaluating the process and design of internal controls, including the ongoing implementation of a new ERP system, in order to ensure readiness from the audit and to avoid late filing of the single audit reporting package and data collection form. Name of Contact Person and Completion Date: Leah Kagan, Interim Director of Administration, December 31, 2026 Anita Carpenter, Grants Officer, December 31, 2026

Views of Responsible Officials and Planned Corrective Actions: The Finance Department acknowledges the late submission for the 2023 fiscal year. To ensure future compliance with Uniform Guidance deadlines, year-end close and audit preparation timelines have been restructured as per the response for Finding 2024-001.

The Organization has hired new staff, changed accounting systems and is developing a strict month-end and year-end close procedure to ensure timely financial reporting and future compliance.

Management has implemented the following corrective actions: 1. Established a formal year-end closing timeline that includes deadlines for completion of the trial balance, account reconciliations, and supporting schedules. 2. Assigned responsibility to the Executive Director to monitor progress toward year-end closing milestones and ensure information is provided to the auditors on a timely basis. 3. Developed a comprehensive audit preparation checklist identifying all schedules, reconciliations, and documentation required by the auditors. 4. Scheduled pre-audit planning meetings with the auditors to establish mutually agreed-upon deadlines and identify potential issues that could delay audit completion 5. Implemented periodic status reviews during the audit process to monitor progress and address outstanding auditor requests promptly.

Finding 2024 – 103 – Single Audit Reporting Package and U.S. Housing and Urban Development REAC Submissions Not Filed Timely. (Significant Deficiency, Compliance Finding-Other Matter) Federal program information: Funding agency: U.S. Department of Housing and Urban Development Title: Supportive Housing for people with disabilities Assistance Listing Number: 14.181 Award year: 2023/2024 Award numbers: Project 123-HD042; AZ20Q081002 Pass-Through grantors: N/A Compliance Requirement: Reporting Questioned Costs: N/A Contact Name: Joe Keeper, Chief Financial Officer of the Sponsor Corrective Action Planned: Part 1: Immediate corrective actions (to address immediate noncompliance). Submit all overdue Single Audit and REAC reporting packages immediately to resolve the current noncompliance. Task Responsible Party 1.1. Prepare and submit delinquent reports: 1.1.1. Assemble and finalize the overdue Single Audit Reporting Package for FY 2024 and submit it to the Federal Audit Clearinghouse (FAC). Chief Financial Officer (CFO) 1.1.2. Assemble and finalize all overdue REAC Annual Financial Statements (AFS) for FY 2024 and submit them to HUD's Financial Assessment Subsystem (FASS-MF) via the REAC Secure Systems. Property Manager 1.2. Notify HUD: 1.2.1. Immediately notify the local HUD Field Office and the assigned Account Executive of the finding and the plan for submission of all delinquent reports. Property Manager 1.3. Document and address penalties: 1.3.1. Address any penalties or noncompliance flags resulting from the late filings, which may include interaction with HUD's Departmental Enforcement Center (DEC). Property Manager / CFO Part 2: Systemic corrective actions (to prevent future noncompliance) Implement new policies and procedures to ensure all future HUD Single Audit and REAC submissions are filed on time. Task Responsible Party 2.1. Revise and implement internal policies: 2.1.1. Draft a written policy defining the timelines and responsibilities for all HUD financial and audit reporting, including Single Audit and REAC AFS submissions. This policy will be housed in the organization's Operations Manual. CEO / CFO 2.2. Develop a comprehensive compliance checklist: 2.2.1. Create and implement a calendar-based checklist for all HUD reporting requirements, with deadlines for every stage of the process, including financial data collection, auditor engagement, and submission. CFO / Property Manager 2.3. Enhance financial review and control procedures: 2.3.1. Implement a formal review and approval process for all financial statements and audit packages. Require a documented review by the CFO and sign-off by the CEO and Board of Directors before any submission. CFO 2.4. Improve communication and oversight: 2.4.1. Establish a quarterly meeting with all key staff involved in HUD reporting (CFO, Property Manager, accounting staff) to review deadlines and ensure all tasks are on schedule. CEO 2.4.2. Assign a designated staff member as the primary point of contact for external auditors and the HUD REAC Secure Systems. Property Manager 2.5. Provide staff training: 2.5.1. Schedule and conduct training for all relevant staff on the new policies, checklists, and the HUD reporting platforms (FAC and REAC Secure Systems). Third Party Training Professionals, HUD and Property Manager’s compliance officer 2.6. Address external auditor issues (if applicable): 2.6.1. Evaluate the relationship with the current external audit firm. If timeliness was a factor in the audit report delay, establish clear communication protocols and deadlines in the new engagement letter. Consider a different firm for future audits if necessary. CFO Part 3: Monitoring and future enforcement (to sustain compliance) Create a monitoring plan to ensure the corrective actions are working and that late filings do not recur. Task Responsible Party 3.1. Ongoing monitoring: 3.1.1. The CFO will provide a monthly report to the CEO on the status of all HUD reporting deadlines. The report will highlight upcoming deadlines and progress toward completion. CFO 3.2. Annual review: 3.2.1. Conduct an annual review of the HUD Reporting Policy and Compliance Checklist to ensure they are current and effective. CEO / CFO 3.3. Update internal audit program: 3.3.1. Incorporate the timely filing of HUD reports into the organization's internal audit or quality assurance program. CFO Anticipated Completion Date: December 2025

Finding 2024 – 103 – Single Audit Reporting Package and U.S. Housing and Urban Development REAC Submissions Not Filed Timely. (Significant Deficiency, Compliance Finding-Other Matter) Federal program information: Funding agency: U.S. Department of Housing and Urban Development Title: Supportive Housing for people with disabilities Assistance Listing Number: 14.181 Award year: 2023/2024 Award numbers: Project 123-HD046; AZ20Q091002 Pass-Through grantors: N/A Compliance Requirement: Reporting Questioned Costs: N/A Contact Name: Joe Keeper, Chief Financial Officer of the Sponsor Corrective Action Planned: Part 1: Immediate corrective actions (to address immediate noncompliance). Submit all overdue Single Audit and REAC reporting packages immediately to resolve the current noncompliance. Task Responsible Party 1.1. Prepare and submit delinquent reports: 1.1.1. Assemble and finalize the overdue Single Audit Reporting Package for FY 2024 and submit it to the Federal Audit Clearinghouse (FAC). Chief Financial Officer (CFO) 1.1.2. Assemble and finalize all overdue REAC Annual Financial Statements (AFS) for FY 2024 and submit them to HUD's Financial Assessment Subsystem (FASS-MF) via the REAC Secure Systems. Property Manager 1.2. Notify HUD: 1.2.1. Immediately notify the local HUD Field Office and the assigned Account Executive of the finding and the plan for submission of all delinquent reports. Property Manager 1.3. Document and address penalties: 1.3.1. Address any penalties or noncompliance flags resulting from the late filings, which may include interaction with HUD's Departmental Enforcement Center (DEC). Property Manager / CFO Part 2: Systemic corrective actions (to prevent future noncompliance) Implement new policies and procedures to ensure all future HUD Single Audit and REAC submissions are filed on time. Task Responsible Party 2.1. Revise and implement internal policies: 2.1.1. Draft a written policy defining the timelines and responsibilities for all HUD financial and audit reporting, including Single Audit and REAC AFS submissions. This policy will be housed in the organization's Operations Manual. CEO / CFO 2.2. Develop a comprehensive compliance checklist: 2.2.1. Create and implement a calendar-based checklist for all HUD reporting requirements, with deadlines for every stage of the process, including financial data collection, auditor engagement, and submission. CFO / Property Manager 2.3. Enhance financial review and control procedures: 2.3.1. Implement a formal review and approval process for all financial statements and audit packages. Require a documented review by the CFO and sign-off by the CEO and Board of Directors before any submission. CFO 2.4. Improve communication and oversight: 2.4.1. Establish a quarterly meeting with all key staff involved in HUD reporting (CFO, Property Manager, accounting staff) to review deadlines and ensure all tasks are on schedule. CEO 2.4.2. Assign a designated staff member as the primary point of contact for external auditors and the HUD REAC Secure Systems. Property Manager 2.5. Provide staff training: 2.5.1. Schedule and conduct training for all relevant staff on the new policies, checklists, and the HUD reporting platforms (FAC and REAC Secure Systems). Third Party Training Professionals, HUD and Property Manager’s compliance officer 2.6. Address external auditor issues (if applicable): 2.6.1. Evaluate the relationship with the current external audit firm. If timeliness was a factor in the audit report delay, establish clear communication protocols and deadlines in the new engagement letter. Consider a different firm for future audits if necessary. CFO Part 3: Monitoring and future enforcement (to sustain compliance) Create a monitoring plan to ensure the corrective actions are working and that late filings do not recur. Task Responsible Party 3.1. Ongoing monitoring: 3.1.1. The CFO will provide a monthly report to the CEO on the status of all HUD reporting deadlines. The report will highlight upcoming deadlines and progress toward completion. CFO 3.2. Annual review: 3.2.1. Conduct an annual review of the HUD Reporting Policy and Compliance Checklist to ensure they are current and effective. CEO / CFO 3.3. Update internal audit program: 3.3.1. Incorporate the timely filing of HUD reports into the organization's internal audit or quality assurance program. CFO Anticipated Completion Date: December 2025

Management will implement enhanced year-end closing and audit coordination procedures, including earlier preparation timelines, improved tracking of audit deliverables and reporting deadlines, and increased coordination with outsourced accounting and audit partners to help ensure timely completion and submission of future Single Audit reporting packages.

Recommendation We recommend that Management enhance its internal control structure, to include milestones for submitting the Single Audit Reporting Package. Management Response Corrective Action Corrective Action: DNA will comply with the recommendation. DNA will ensure processes are in place to comply with the due date of nine months after year end. Due Date of Completion: September 30, 2026. Responsible Party(ies) Chief Financial Officer

The District acknowledges the failure to submit the Single Audit data collection form for the fiscal year ended June 30, 2023 to the Federal Audit Clearinghouse within the required 30-day post-opinion deadline. The form was never submitted for that fiscal year. Additionally, for the fiscal year ended June 30, 2024, the District’s accounting records were not available until March 2026, causing the audit to extend well beyond the required nine-month completion deadline and resulting in further noncompliance with Single Audit reporting requirements. Current management has improved procedures related to the management of Single Audit compliance obligations. The District, in coordination with the third-party accounting firm and the external auditor, has established a compliance calendar that identifies all Single Audit submission deadlines and assigns responsibility for preparation, certification, and submission of the data collection form. Procedures have been implemented to ensure accounting records are available on a timely basis to support completion of the audit within the required nine-month window, starting with the fiscal year ending June 30, 2026. We plan to ensure that the fiscal year ended June 30, 2023 data collection form is submitted to the Federal Audit Clearinghouse and that the fiscal year ended June 30, 2024 Single Audit is completed and submitted within 30 days of the audit opinion date, and that all future Single Audit data collection forms are submitted in a timely manner. Estimated date of implementation of the corrective action plan: Ongoing Person responsible for implementation of the corrective action plan: Dr. Kirk Henwood

To ensure the audit is submitted in a timely manner, and on time, we will begin at the beginning of the year.

Management Response / Corrective Action: The City acknowledges the finding. Federal reporting deadlines will be incorporated into the City's annual compliance calendar, and management will coordinate earlier completion of audit deliverables and required submissions. For the FY2024 Single Audit reporting package, the City will complete the Data Collection Form and Federal Audit Clearinghouse submission upon final issuance/receipt of the auditor's reports and retain evidence of submission. For future single audits, the City will monitor the Uniform Guidance deadline and submit the Data Collection Form and reporting package by the earlier of 30 calendar days after receipt of the auditor's reports or nine months after year-end.

2024-004—Late Audit Report Corrective Action: FCCH leadership inherited a situation in which the organization was woefully behind in its accounting records. The existing team has relentlessly pursued getting caught up. Turnover has hampered our efforts, yet we remain committed to the task. We are committed to continuing the effort to become fully compliant and to submit our 2025 audit on time. The FCCH Board of Directors shall ensure accountability for completing all audits in the future on time. Person Responsible: Shawna Gonzales, Chief Financial Officer Completion Date: May 31, 2026