Corrective Action Plans

Recommendations: The Organization should implement stronger internal controls to ensure that reporting deadlines are effectively monitored and met. This may include: - Developing and maintaining a reporting calendar with clearly defined deadlines for financial reporting. - Assigning responsibility for tracking and ensuring timely submission of reports. Additionally, the Organization should conduct a root cause analysis to address any underlying issues and implement corrective actions to prevent future delays. Views of responsible officials and planned corrective actions: Management agrees with the finding and will implement processes to mitigate the risk of future late file reports. Anticipated Completion Date: June 2025

Recommendation: We recommend that the Project implement stronger internal controls to ensure that reporting deadlines are effectively monitored and met. Management Response: Management agrees with the finding and will implement processes to mitigate the risk of future late file reports.

2024-003- Significant Deficiency, Data Collection Form (Repeat Finding 2023-003) Audit Finding; The Town did not submit the 2024 or 2023 federal reporting packages with the Federal Audit Clearinghouse within the required timeline of either 30 days after receipt of the auditor’s reports or nine (9) months after the end of the Town’s fiscal year as required by CFR 200.512(a)(1). Corrective Action Taken: We agree with this audit finding, resulting from turnover at the BOE. The delays should not reoccur in the future. Name and Phone # of Person Responsible for Implementation Mr. Peter Mynarski, Comptroller 203-622-2226

Action taken: Management has updated the process to verify that the reporting package, including the Single Audit report, is submitted to the FAC successfully. While management previously certified the reporting package properly, the final step of submission was not properly monitored and verified. Effective immediately, management has implemented a new step requiring the inclusion of a physical screenshot for the final submission to the FAC. This adjustment ensures proper documentation and alignment with compliance requirements. Person responsible: Maria Cardiellos, Executive Director Date completed: March 13, 2025

View of Responsible Officials: Management carried out an after action review to identify the root cause of delays in completing the FY23 audit and timely filing of the single audit report packet. During FY24, we implemented strict timeline in completing the FY24 year end financial closing process and accounts reconciliation. An overall Audit Coordinator was appointed and worked closely with the business process leads while Regional and Country Managers helped ensure completion of the FY24 field offices and affiliates audit reports prior to start of the global audit fieldwork. Timely filing of the single audit report packet for FY24 is a high organizational priority. While significant improvements were noted during the recent audit, management continues to identify ways to improve existing processes and ensure that any challenges encountered were assessed and action immediately taken to address them.

Finding 2024-005: Significant Deficiency and Noncompliance Finding, Late Issuance of the 2024, 2023 and 2022 Single Audit Reporting Packages Applicable to all assistance listing numbers (ALN’s) and federal agencies (and passthrough entities) included on the accompanying schedule of expenditures of federal awards for the years ended June 30, 2024, June 30, 2023, and June 30, 2022. Uniform Guidance 2 CFR 200.512(a) requires that each organization’s audit must be completed, and the data collection form and reporting package should be submitted within 30 days after receipt of the auditor’s report or nine months after the end of the audit period. The Single Audit packages for the City’s fiscal year ended June 30, 2024, June 30, 2023, and June 30, 2022, should have been submitted to the Federal Audit Clearinghouse by March 31, 2025, March 31, 2024, and March 31, 2023, respectfully. The City missed the filing deadlines, making the filings for 2024, 2023 and 2022 late. Corrective Actions Taken: 1. Improved Reporting Processes: The City has streamlined the audit reporting process through enhanced coordination with auditors and improvements to internal procedures. The City recently hired an Internal Auditor, Joan Appiah Yankson, to review City policies and implement standard operating procedures 2. Resource and Training Enhancements: Standard operating procedures are being implemented along with additional staffing and training to support the timely completion of audit reports. Contact: Dr. Kristy Samperi, Controller, Ongoing

The audit for the year ended June 30, 2023 was not submitted to the Federal Audit Clearinghouse due to issues with the UEI numbers not being renewed timely on the Academy's side. The Finance Director is now responsible for the renewals going forward, and this will not be an issue in the future.

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2024-001: Significant Deficiency - Late Audit Reporting Recommendation: Implement procedures and controls to ensure that future audits are completed and submitted in a timely manner. Action Taken: Management agrees with the auditor's finding and recommendation. The new Deputy Director of Finance will play a key role in ensuring adherence to audit timelines and enhancing overall reporting efficiency.

Corrective Action Taken or Planned: As part of the policies and procedures update, the Business Office has included a section on compliance, with the creation of a compliance calendar to ensure all filings are completed on a timely basis. The Business Office will continue to follow internal policies and procedures, including deadlines for fiscal year-end process. Contact Person Responsible for Corrective Action Plan: Anne Cothran, Executive Director Completion Date: March 31, 2025

Identifying Number: 2024-001 Finding: Untimely Submission of the 2024 Single Audit Reporting Package Corrective Action Taken or Planned: As part of the policies and procedures update, the Business Office has included a section on compliance, with the creation of a compliance calendar to ensure all filings are completed on a timely basis. The Business Office will continue to follow internal policies and procedures, including deadlines for fiscal year-end process. Contact Person Responsible for Corrective Action Plan: Elsa Velazquez, Assistant Director and Chief School Business Official Completion Date: December 31, 2025 ______________________ Andrew Bernard, Assistant Director and Chief School Business Official

Finding Number: 2024‐001 Program Name/Assistance Listing Title: Forest Service Schools and Roads Cluster, Education Stabilization Fund Assistance Listing Number: 10.665, 84.425 Contact Person: Andrea Despain, Business Manager Anticipated Completion Date: June 30, 2025 Planned Corrective Action: The District will collaborate with all grant stakeholders to strengthen internal controls by clearly defining responsibilities, tracking submission deadlines, and ensuring strict adherence to policies. Oversight will be reinforced through regular grant management meetings and reviews conducted by the Business Manager. To enhance reporting accuracy and documentation practices, staff will receive targeted training on compliance requirements. Additionally, recordkeeping processes will be standardized, with periodic reviews to verify adherence and improve efficiency. These corrective actions will be implemented promptly and continuously supported through ongoing monitoring, ensuring more timely and accurate audits while maintaining compliance with federal regulations.

Recommendation We recommend that management enhance its internal control structure, including financial close and reporting, to ensure timely filing of future Single Audit reporting packages. Management Response Corrective Action: NIYC has been working towards getting caught up on the timely audit completion requirement as per the 2CFR 200.512, including the retention of a larger audit firm to schedule and complete the audit in a more timely manner. We have also implemented a monthly and year-end closing process to facilitate filing of future Single Audit reporting packages. Due Date of Completion:March 31, 2026 Responsible Person(s): NIYC Management

Along with FY22 financial data changes to the Financial Data Schedule, and changes to the FY23 Financial Data Schedule and the issuance of FY23 audit on March 21, 2025, caused a delay in the finalization of the FY24 Financial Data Schedule submission. With the completion of the HUD requested changes, the Agency anticipates future submissions to be timely and accurate without continuous changes to balance sheet accounts. Additionally, The Authority has restructured the accounting team and implemented multiple internal controls, policy and procedures over financial reporting. To ensure a timely audit, the finance team and the auditors maintain clear and detailed communication throughout the entire process. Additionally, confirm that the auditors have sufficient capacity to complete the audit within the agreed-upon timeline.

Management’s Comments and Corrective Action Plan: Management has reviewed finding 2024-001 related to timely Single Audit report submission to the Federal Audit Clearinghouse and has developed the following plan to address this finding and ensure compliance going forward. 1. Root Cause Analysis – Previous to 2023, the last time the Y was required to have a Single Audit was the year ended December 31, 2012. Because this was a new process to the Y, we were unaware that we needed to submit the Single Audit to the Federal Audit Clearinghouse. In past years, the independent audit firm initiated the e-filing process on our behalf. 2. Action Steps – The Y will develop a year-end Federal Awards checklist to include all necessary preparation steps including but not limited to preparation of the Schedule of Expenditures of Federal Awards (SEFA); corresponding audit documentation; and procedures for filing the completed Single Audit to the Federal Audit Clearinghouse including confirmation that independent auditors have reviewed and certified the submission to the Clearinghouse. 3. Responsible Parties – The Controller will complete the checklist and perform the filing to the Federal Audit Clearinghouse and the CFO will review and approve. 4. Timeline – Submission of the Single Audit to the Federal Audit Clearinghouse as well as completion, review, and approval of the checklist will be done within 30 days of receipt of the final Single Audit report. 5. Monitoring & Evaluation – The checklist and approval process will be monitored on an annual basis to ensure ongoing compliance and effectiveness of this corrective action plan.

Finding 2024-007 Programs: All Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting Repeat Finding: Yes; 2023-006 Auditee’s Corrective Action Plan: The city’s legacy financial system did not collect data required for SEFA. Agencies had to provide most details manually and work between spreadsheets and multiple systems to input and track receipt grant awards and spend on personnel, supplies and services and sub-recipient awards related to grants. The steps to address this legacy finding have been phased and include the technology implementation, staff training and additional oversight. As noted, the City implemented Workday, an Enterprise Resource Planning (ERP) system, across workstreams so that Financial Accounting, Grants, Procurement, Supplier Accounts, Banking, Payroll and Human Resources are all in one system. As with any ERP, an ongoing process of evaluation and updates are needed to continuously align workflow and business processes. This approach has led to continued improvement over the years as the grants management module is fully implemented in Workday. Since implementation, additional enhancements have been adopted and utilized with a robust workflow process for grant approval, grant budget tracking, and invoice scheduling. In addition to the technology adoption, an increase in citywide grants training and oversight has been implemented. The progress is detailed below: • FY 23 represented the first year in the new system. To compile the SEFA, the City used a hybrid approach to leverage Workday and Agency provided data. o There were some data accuracy challenges from data entry errors. To address those data entry challenges the award modification business process was improved post-implementation to add a GMO review and approval step of award modifications. o As of May 2024, all award modifications now require centralized GMO review to verify data accuracy. o Additional process changes in FY 23 included implementation of the requirement as part of the FY 24 budget preparation process that grant worktags must be created and budgeted for during the City’s annual budget process. The grant worktag creation process includes approvals at the agency program and fiscal levels, as well as at the Department of Finance level. • In FY24 further Award Module enhancements were adopted to provide key new data points in Workday. o Each grant award now includes information: Federal Assistance Listing Number (fna CFDA#), Passthrough Agencies & Passthrough Identifier. DRAFT CITY OF BALTIMORE Corrective Action Plans Year Ended June 30, 2024 146 Finding 2024-007 (continued) Auditee’s Corrective Action Plan: (continued) o Additionally, in FY 24, GMO, in collaboration with BAPS launched the Grants Workstream Training sessions. These monthly citywide virtual live trainings are on a variety of grant management related topics, averaging 60 attendees per session. Attendees are city agency grant managers and city agency fiscal staff. • In FY 24 and FY 25 the topics covered included: o FY 24 Grant Work tag Preparation o FY 24 SEFA Preparation o Grant Accounting Best Practices and Workday Billing o Award Set-up Best Practice & Potential Pitfalls o Extra Features in Workday (including reporting and how to set up award tasks and deadlines) o Subrecipient Monitoring Best Practices o Cost-reimbursable grant invoicing in Workday o FY 25 SEFA preparation o FY 26 Grant Work tag Preparation o Grant Management Roles and Responsibilities o Specific training on the SEFA, including information on understanding the importance of the SEFA, what information is included and how to review SEFA data, was conducted. Citywide training sessions were held in FY 24 and FY 25 to ensure that the reporting is understood by city agencies, with special emphasis on subrecipient payments being reported properly. The training schedule is ongoing and continuous. • To improve SEFA reporting data, in FY 25 there is an emphasis on subrecipient set up and spending to ensure that functionality is refined to improve uniformity in subrecipient set up. GMO, in conjunction with BAPS, the Bureau of Procurement and city agencies will work to refine subrecipient set up, spending and monitoring, including improved reporting. o GMO has hosted three subrecipient monitoring and management–related trainings since December 2024. Additionally, to improve subrecipient managing and monitoring, GMO modified the award setup business process in Workday to include verification of subaward status before final award setup approval. In FY 25, GMO provided training on how to setup subawards accurately in Workday. As discussed above, these trainings will be ongoing. • Additionally, GMO and the BBMR will collaborate on a subaward dashboard to monitor subrecipient spending data in real time. Contact Person: Michael Moiseyev, Chief Financial Officer, Baltimore City Completion Date: FY26 3rd Quarter- • Design and complete a grants management dashboard within Workday • Ongoing and continuous - GMO will continue to conduct trainings on SEFA reporting and subrecipient management and reporting.

The Town has implemented a year-end closing process. Once the Town becomes current this compliance issue will be mitigated.

As a corrective measure, BGCPR will take the following actions and will anticipate completing on June 30, 2025: a. Developing and enforcing a structured reporting calendar. b. Allocating dedicated resources to support audit preparation. c. Establishing internal checkpoints to monitor progress and ensure accountability. d. Ensure future submissions meet the required deadlines.

In July 2024, the Chief Financial Officer, Veronica Koller, was hired, along with an Accounting Manager, Nicole Sullivan in September 2024. The staffing of these two positions, along with the Controller, Hannah Pawlowski, will ensure that the completion of the financial statements and single audits for the period of June 30, 2025 will occur in time necessary to submit the data collection form within the earlier of 30 days after receipt of the auditor’s report or nine months after the end of the audit period

REPORTABLE NONCOMPLIANCE WITH FEDERAL REPORTING REQUIREMENTS – ALL FEDERAL PROGRAMS AWARDED UNDER THE UNIFORM GUIDANCE 2024-002 Federal Reporting Deadline Finding Summary 2 CFR Part 200, Subpart F, § 200.512(a)(1) requires the School’s audited Schedule of Expenditures of Federal Awards (SEFA) and federal reporting package to be submitted to the federal audit clearinghouse within the earlier of 30 calendar days after the receipt of the auditor’s report(s), or 9 months after the end of the audit period. The School’s audited SEFA and federal reporting package for the fiscal year ended June 30, 2024, were not submitted to the federal audit clearinghouse within 9 months after the end of the audit period. Corrective Action Plan Actions Planned – The audit of the School’s SEFA for the year ended June 30, 2024, was not completed within the 9-month reporting period. The completion of the School’s audited annual SEFA for the year ended June 30, 2024, which is a required component of the federal reporting package, was delayed beyond the 9-month deadline pending sufficient audit evidence. School management will ensure that all information required to comply with federal reporting requirements will be completed and submitted in a timely manner going forward. Official Responsible – The School’s Executive Director, Matthew Cisewski. Planned Completion Date – June 30, 2025. Disagreement With or Explanation of Finding – The School agrees with this finding. Plan to Monitor – The School’s Executive Director, Matthew Cisewski, will monitor the year-end financial closing and reporting process to ensure all federal and state reporting requirements are complied with in the future.

REPORTABLE NONCOMPLIANCE WITH FEDERAL REPORTING REQUIREMENTS – ALL FEDERAL PROGRAMS AWARDED UNDER THE UNIFORM GUIDANCE 2024-007 Federal Reporting Deadline Finding Summary 2 CFR Part 200, Subpart F, § 200.512(a)(1) requires the Academy’s audited Schedule of Expenditures of Federal Awards (SEFA) and federal reporting package to be submitted to the federal audit clearinghouse within the earlier of 30 calendar days after the receipt of the auditor’s report(s), or 9 months after the end of the audit period. The Academy’s audited SEFA and federal reporting package for the fiscal year ended June 30, 2024, were not submitted to the federal audit clearinghouse within 9 months after the end of the audit period. Corrective Action Plan Actions Planned – The audit of the Academy’s SEFA for the year ended June 30, 2024 was not completed within the nine-month reporting period. The completion of the Academy’s SEFA for the year ended June 30, 2024, which is a required component of the federal reporting package, was delayed beyond the 9 month deadline pending sufficient audit evidence. Academy management will ensure that all information required to comply with federal reporting requirements will be completed and submitted in a timely manner going forward. Official Responsible – The Academy’s Executive Director, Farhiya Einte. Planned Completion Date – June 30, 2025. Disagreement With or Explanation of Finding – The Academy agrees with this finding. Plan to Monitor – The Academy’s Executive Director, Farhiya Einte, will monitor the year-end financial closing and reporting process to ensure all federal and state reporting requirements are complied with in the future.

Reportable Condition: See Condition 2024-002 Recommendation: We recommend the Municipality to maintain adequate records related to the non-fedeal and federal funds in order to properly prepare the financial statements accurate and in a timely manner. In addition, the Municipality needs to implement adequate internal controls procedures in order to ensure that the supporting documentation is available in a timely manner. Action Taken: Management gave instructions to the Department staff to submit, in a timely manner, all required information to our external consultants and to our external auditors, to comply with the due date for the submission of the Single Audit Report.

Valley Partners agrees with the finding and will work to ensure controls are in place so that the Single Audit reporting package is filed timely going forward.

CONTACT PERSON For finding resolution and Single Audit matters, please contact Stacey Layman, Director of Accounting, Contracts, and Human Resources. 2024-005 DATA COLLECTION FORM COMPLIANCE (11.469 CONGRESSIONALLY IDENIFIED AWARDS AND PROJECTS) Corrective Action- We will complete all future Single Audits in a timely manner and to the Federal Audit Clearinghouse prior to the required deadline to ensure all compliance requirements are met.

Finding no.: 2024-001 Contact person(s) responsible: Kymberly Horner, Executive Director for PCRI and Radha Mehrotra, Controller for Cascade Management Corrective action planned: The closing of books and preparation for audit procedures is being addressed via improvements in internal controls related to property accounting, month and year end closing procedures which include a new property management accounting software package. It is also being addressed via the hiring of more experienced staff during fiscal year 2024-2025. The organization anticipates that these improvements will allow for the audit to be completed within the required timeframe in the upcoming cycle. Anticipated completion date: October 2025

Finding Number: 2024‐001 Program Names/Assistance Listing Titles: Assistance Listing Numbers: Title I Grants 84.010 Child Nutrition Cluster 10.553, 10.555, 10.559 Impact Aid 84.041 Education Stabilization Fund 84.425 Contact Person: Arlene Laughter, Business Coordinator Anticipated Completion Date: December 30, 2025 Planned Corrective Action: The District will implement better controls over financial reporting and records retention to ensure all documents are prepared and available for the timely completion of the financial reports.