Corrective Action Plans

Finding 2025-001: Significant deficiency in internal controls over compliance and immaterial noncompliance Corrective Action Planned: Connected Lane County updated internal control processes, approved by the board on 05.21.25, which significantly reduced year end processing delays and the number of corrections needed to complete the audit. The audit for fiscal year 2025 ending on June 30, 2025 was completed within seven months of the end of the fiscal year. Person(s) Responsible: Jesse Nelson, Executive Director and Mary Bell, Finance Manager Anticipated Completion Date: 09.01.2025

Name of auditee: B'nai B'rith Housing of New Haven, Inc. HUD auditee identification number: 017-EE029 Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended June 30, 2025 CAP prepared by Name: Linda Hamilton Position: Senior Vice President Telephone number: (860) 646-6555 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Finding #2025-001: Comments on the Finding and Each Recommendation For the years ended June 30, 2024 and June 30, 2023, the Corporation did not submit the Data Collection Form (SF-SAC) to the Office of Management and Budget (OMB) as required by Uniform Guidance section 2 CFR 200.512. The Corporation should submit all future Data Collection Forms in the required time frame. Action(s) Taken or Planned on the Finding Agree. Management concurs with the recommendation and notes that the Data Collection Form will be submitted timely moving forward.

Condition Found: Per the federal Audit Clearinghouse records, the Village's Data Collection Form for the fiscal year ending April 30, 2024, was submitted April 22, 2025, which is past the nine month deadline. This is deemed to be an instance of noncompliance with applicable reporting requirements. Corrective Action Plan: The FY25 Coal City Data Collection Form shall be submitted in a timely fashion due to the annual audit having been completed within a time period allowing the filing to occur prior to January 31, 2026 deadline. Responsible Person for Corrective Action Plan: The Finance Manager shall ensure filling of the correct documentation is made and submitted to the Federal Audit Clearinghouse regarding the FY25 Audit. Implementation Date of the Corrective Action Plan: December 31, 2025

Name of Contact Person: Rance Phillips, Mayor. Recommendation: We recommend that all required filings be submitted timely according to the Single Audit Act of 1984 and Title 2 U.S. Code of Federal Regulations guidelines. Corrective Action: We agree with the finding and the Data Collection form will be filed in a timely manner. Proposed Completion Date: Immediately.

Corrective Action Plan (CAP): Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Actions Planned in Response to Finding: The School will implement the recommendation. Officials Responsible for Ensuring CAP: The School Director is the official responsible for ensuring corrective action. Planned Completion Date for CAP: The planned completion date for the CAP is June 30, 2026. Plan to Monitor Completion of CAP: The School Board will be monitoring this corrective action plan.

The Village has taken steps to ensure that the Village’s Single audit for the year ended April 30, 2025 is filed with the Federal Audit Clearing House in a timely manner. The Village will continue to perform these procedures as part of its annual financial statement preparation process in future years.

Corrective Action: The organization has established a compliance calendar with automated reminders to ensure all reporting deadlines are met. Additionally, the Executive Vice President has been authorized as an alternate signer for this report to prevent delays caused by signature requirements. Responsible Party: Jeremy Ashbaugh, Director of Finance Anticipated Completion Date: Corrected.

The Company will work with the audit firm to ensure the data collection form is filed timely in the future. The late filing was an oversight as the single audit package was not filed within 30 days after the receipt of the audit report, but prior to the nine-month deadline of February 28, 2025. Anticipate completion by 12/31/2025.

Finding #2025-001 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: Clayton Improvements Association, LTD. 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 Kristi Dippel, Executive Director, at (315)686-3212 x2.

Finding 2025-001 Federal assistance listing number and name: 10.415 Rural Rent Housing Loans Awards numbers and years: 2025 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

View of Responsible Official and Corrective Action The delay in the submission of the Data Collection Form was a direct result of the audit team moving to a new accounting firm and a miscommunication as to which firm was going to assist with the completion of the Data Collection Form. Management has taken steps to ensure that the Data Collection Form for the year-ended June 30, 2025 will be submitted timely. Upon identifying the late submission, management immediately completed the submission of the 2024 Data Collection Form and reporting package on August 12, 2025.

Planned Corrective Action: Valley Health Associates will ensure accounting methods are consistent and include proper documentation. And, immediately ensure reports are submitted in a timely manner for the Medi-caid program.

Corrective Action: Iglesia de Dios Pentecostal, M.I. has implemented procedures to strengthen its audit planning and federal compliance process to ensure that future program-specific audit reporting packages are submitted within the deadlines established by 2 CFR §200.512(a).S pecifica lly, management will: 1. Establish an annual compliance calendar identifying all federal reporting deadlines, including the due date for submission of the program-specific audit reporting package to the Federal Audit Clearinghouse (FAC). 2. Begin the auditor procurement or engagement renewal process sufficiently in advance of the fiscal year-end to allow adequate time for audit planning, fieldwork, report issuance, and timely submission of the reporting package. 3. Assign responsibility to a designated management official to monitor compliance with the audit timeline, communicate periodically with the independent auditor regarding the status of the engagement, and ensure that all required documentation is submitted on time. 4. Review the compliance calendar periodically throughout the year and document management's monitoring activities to ensure all critical milestones are met. Management believes these measures will significantly reduce the risk of future delays and will promote continued compliance with federal audit reporting requirements

Bear Paw Cooperative federal ID 81-0445802 <PO <Box 1449 - 421 Ohio Street - Chinook, Montana 59523 - 406/357-2269 - 'Fax: 406/357-2517 August 19, 2026 RE: Response to FY2024 Audit Finding View of Responsible Officials: The Cooperative acknowledges the audit finding related to the late completion and submission of its audit and recognizes the importance of maintaining compliance with all applicable audit requirements and deadlines. The delays that resulted in the finding were initially attributable, in significant part, to the lack of available staffing and resulting delays within the Cooperative's previous auditing firm that delayed the completion of the FY2022 audit and subsequent audits thereafter. Despite efforts to obtain the required audit work in a timely manner, the circumstances resulted in the audit falling outside of the required timefran1e. The Cooperative has taken corrective action to address the underlying issue and has worked diligently with a new auditing firm to bring the Cooperative's audits current and back into compliance. Through this effort, the Cooperative successfully completed its FY2023 audit in April 2026 and is now completing the FY2024 audit. The Cooperative has maintained ongoing communication and coordination with the new auditing firm throughout this process to ensure that outstanding audit requirements are addressed and that future audits are completed within the required statutory and regulatory timeframes. The Cooperative appreciates the opportunity to address this finding and remains committed to full compliance and continuous improvement in its financial oversight and reporting practices. Sara G. Tempel, Director Bear Paw Cooperative PO BOX 144 August 19th, 2026 RE: 2024-002 Cash Overdraft View of Responsible Officials: This letter is in response to the finding regarding overdrawn cash accounts. We are implementing corrective actions to ensure compliance moving forward. Bear Paw Cooperative agrees with the audit finding and recommendation. The negative cash balance in the Miscellaneous Programs Fund (315) was primarily the result of timing differences between expenditures incurred during fiscal year 2024 and the receipt of IDEA grant reimbursements. The Cooperative had incurred allowable grant expenditures but had not yet received all related grant disbursements as of June 30, 2024. The negative cash balance in the lnterlocal Agreement Fund (382) resulted from expenditures exceeding the fund's available revenues and other financing sources during the fiscal year. Bear Paw Cooperative recognizes the importance of maintaining adequate cash balances within each fund and complying with GASB requirements and applicable Montana statutes. Going forward, the Cooperative will strengthen its monitoring of fund cash balances, particularly as year-end approaches. Bear Paw Cooperative will also work to ensure that expenditures are not incurred in excess of available resources for funds subject to applicable expenditure limitations. These procedures are intended to improve cash-flow monitoring, ensure appropriate financial reporting, and prevent negative fund cash balances in future fiscal years Sincerely, Amanda Miller District Clerk Bear Paw Cooperative/Chinook Public Schools PO BOX 14-4 X: 406-357-2517 August 19th 2026 RE: Miscellaneous Fund Tracking and Accounting View of Responsible Officials: Bear Paw Cooperative agrees with the finding and recommendation. Bear Paw Cooperative has implemented procedures to improve the monitoring of cash and program balances. The Cooperative will perform monthly reconciliations of the grant/project balances to the County Treasurer's cash balance and will review cash balances by fund and project reporter code (PRC) throughout the year. These reconciliations will assist management in identifying potential cash shortfalls and discrepancies in program balances before year-end. We believe these procedures will provide better oversight of individual program cash balances, improve the accuracy of financial reporting, and reduce the likelihood of negative cash balances at year-end. Sincerely, Amanda Miller District Clerk Bear Paw Cooperative/Chinook Public Schools BEAR PAW COOPERATIVE PO BOX 1449 . CHINOOK, MT 59523 . 406-357-2269 . FAX: 406-357-2517 August 31st 2026 RE: Auditee Response – 2024-004 Proper Uses of Revenue and Funds Bear Paw Cooperative agrees with the audit finding and recognizes the importance of ensuring that revenues and expenditures are recorded in the appropriate fund and that each fund is used only for its designated purpose. The $13,502 identified in the audit resulted from revenue being coded to the Retirement Fund rather than the Interlocal Agreement Fund. This resulted in the Retirement Fund cash and revenue being overstated and the Interlocal Agreement Fund cash and revenue being understated. Management acknowledges that the error was a result of incorrect fund coding when the revenue was recorded. To prevent similar errors in the future, the Cooperative will implement the following procedures: • Revenue receipts will be reviewed at the time of entry to verify that the revenue is being recorded in the appropriate fund and account. • Supporting documentation will be reviewed to determine the designated purpose of each revenue source before the transaction is posted. • Fund coding will be reviewed periodically to identify and correct any transactions that may have been recorded in an incorrect fund. Bear Paw Cooperative will continue to monitor fund activity and ensure that revenues and resources are maintained separately and used for their intended purposes in accordance with applicable GASB requirements and the School Accounting Manual. Sincerely, Amanda Miller District Clerk Bear Paw Cooperative/Chinook Public Schools

Views of Responsible Officials: Upon assuming financial leadership in 2026, the new VP of Finance inherited the 2023 audit in a state of significant delay. The commencement of the 2023 audit was delayed due to the backlog of incomplete prior year audits that required resolution before the current year engagement could begin, RoboNation had also transitioned to a new audit firm for the 2023 audit, the compound effect contributed to extended timelines and completion delays. Management has implemented the following corrective actions: RoboNation has restored its relationship with its previous audit firm, which has enabled more efficient audit execution and improved communication. The 2023 audit was completed in early 2026, and the 2024 audit was completed on an accelerated timeline. Timelines have been discussed and agreed with the auditors and management for the 2025 audit which positions RoboNation to return to compliance with Federal reporting deadlines. The audit is targeted for completion by September 30, 2026, placing the Data Collection Form submission well within the required deadline. Additionally, management is implementing standardized monthly reconciliation procedures, formalized account close processes, and enhanced financial reporting capabilities that will enable future audits to be executed more efficiently. RoboNation is targeting completion of the 2026 audit in Spring 2027, which will establish a sustainable, predictable audit cadence aligned with Federal compliance requirements.

The County acknowledges the delay in submitting the Data Collection Form within the required timeframe. The delay was primarily attributable to unresolved financial data and reconciliation issues resulting from the September 2023 transition to the Workday ERP system. Additional time was necessary to resolve these issues and ensure accurate financial information was provided for the audit and subsequent filing. The County continues to strengthen reconciliation and year-end closing procedures and refine processes within Workday. With these improvements, the County anticipates the 2025 audit and related filings will be completed within the required timeframes.

During fiscal year 2026, the Coalition engaged an outsourced accounting firm to provide ongoing accounting, financial reporting, and year-end close support. This includes the implementation of formal month-end and year-end close procedures, including account reconciliation processes and review of financial reporting. These procedures are intended to improve audit readiness by ensuring financial records, reconciliations, and supporting schedules are prepared and maintained throughout the year, enabling the annual audit and related federal reporting requirements to be completed and submitted by required deadlines.

The Authority recognizes the importance of timely Single Audit submissions to maintain compliance and low-risk auditee status. Delays in completing the audit process affected the FY2024 and FY2025 cycles, and residual timing challenges may impact the FY2026 deadline. To address this matter, the Authority has implemented process improvements including a formal Single Audit calendar, monthly progress monitoring, and cross-training of staff. These measures are intended to support full compliance beginning with the FY2027 audit cycle.

Strengthened internal controls over year-end financial reporting to ensure timely completion of the audit by establishing a comprehensive audit timeline with milestone deadlines by February 28, 2026. Implemented a detailed closing schedule and tracking process to monitor deadlines, beginning with monthly financial close procedures and year-end close preparation by March 31, 2026. Ensured adequate staffing or external support during the financial statement preparation and audit process, including retention of qualified accounting consultant by April 30, 2026. Began conducting periodic reviews to confirm compliance with federal Single Audit submission deadlines, with Executive Director oversight of audit progress reports by May 31, 2026. In the process of prioritizing completion of the outstanding audit report for fiscal year 2025 with an aggressive timeline: 2025 audit by December 31, 2026. In the process of establishing year-round audit preparation procedures, including monthly reconciliations, quarterly financial reviews, and ongoing documentation organization to prevent delays.

Contact Person – Matt Bakke, Executive Director Corrective Action Plan – The Project will review its policies and procedures over monthly reconciliations. Completion Date – 12/31/26

Data collection form not submitted timely to the Federal Audit Clearinghouse A. Name of contact person responsible for corrective action: Name: Raymond Russell Title: Superintendent B. Corrective action planned: The district will implement policies and procedures to establish an internal control system that will ensure strong financial accountability, proper safeguarding of assets, and accurate accounting records. C. Anticipated completion date: Immediately

2024 – 010 – Late Submission of Audit Report The Institution concurs with this finding. With new leadership and administration, Arkansas Baptist College will adhere to its policies, procedures, processes, and federal guidelines as it relates to completing and submitting the audit. Arkansas Baptist College has a new CFO and controller. These measures will ensure stability and a timely audit.

Finding #2024-002 Prior 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: Riordan School Housing Development Fund Company, Inc. 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 John Lutz, Vice President of financial strategy, at (315) 424-1821.

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: Riordan School Housing Development Fund Company, Inc. 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 John Lutz, Vice President of financial strategy, at (315) 424-1821.

Finding #2024-001 Prior Year Reporting Package and Data Collection Not Filed Timely (Capital Advance): ALN 14.157: Recommendation: We recommend that management implement procedures to ensure that reporting packages and data collection forms are filed timely in the future. Action taken: Smokey Hollow 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 John Lutz, Vice President of Financial Strategy, at (315) 424-1821.