Corrective Action Plans

Finding 1181651 (2024-001)

Material Weakness 2024

NC

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.512

Partnership Homes, Inc. Greensboro, North Carolina CORRECTIVE ACTION PLAN February 11, 2026 Federal Audit Clearinghouse 1201 East 10th Street Jeffersonville, Indiana 47132 Partnership Homes, Inc. respectfully submits the following Corrective Action Plan for the year ended December 31, 2024. Bernard ...

Partnership Homes, Inc. Greensboro, North Carolina CORRECTIVE ACTION PLAN February 11, 2026 Federal Audit Clearinghouse 1201 East 10th Street Jeffersonville, Indiana 47132 Partnership Homes, Inc. respectfully submits the following Corrective Action Plan for the year ended December 31, 2024. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Post Office Box 19608 Greensboro, North Carolina 27419-9608 Audit period: Year ended December 31, 2024 The finding from the December 31, 2024 Schedule of Findings and Questioned Costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. Findings - Federal Award Programs Audits Finding No. 2024-001: HOME Investment Partnerships Program , CFDA #14.239 Recommendation: We recommend management ensure that the data collection forms are submitted electronically to the FAC within the required due dates each fiscal year going forward. Management's Response: We agree with Finding 2024-001 and the recommendation described in the accompanying schedule of findings and questioned costs. Management will provide additional oversight to ensure the data collection forms are submitted electronically to the FAC each fiscal year going forward within required due dates. The data collection form for the year ending December 31, 2023 was submitted to the FAC on August 27, 2025. If you have questions regarding this plan, please call Mike Cooke at (336) 707-5289. Sincerely yours, Mike Cooke Executive Director Partnership Homes, Inc.

View Audit 392927

Finding 1181623 (2024-001)

Material Weakness 2024

Sun'aq Tribe of Kodiak

AK

Reporting Material Weakness § 200.512

Finding 2024-001 Late Reporting and Noncompliance with Reporting Requirements Name of Contact: Charise Colsen, Finance Director Corrective Action Plan: A timeline will be established for year-end closing and preparation for the annual audits in a manner that accommodates meeting the nine-month audit...

Finding 2024-001 Late Reporting and Noncompliance with Reporting Requirements Name of Contact: Charise Colsen, Finance Director Corrective Action Plan: A timeline will be established for year-end closing and preparation for the annual audits in a manner that accommodates meeting the nine-month audit submission requirement. Proposed Completion Date: Month XX, 2026

View Audit 392893

Finding 1181622 (2024-010)

Material Weakness 2024

North Valley County Water and Sewer District

MT

Reporting Material Weakness Matching / Level of Effort / Earmarking § 200.303 § 200.328

The district will create an SOP for the reporting process, including reviewing procedures to ensure accuracy of reporting periods. The district will also create and maintain an SOP for maintaining supporting documentation in the reporting package for all amounts and keeping staff trained on these SO...

The district will create an SOP for the reporting process, including reviewing procedures to ensure accuracy of reporting periods. The district will also create and maintain an SOP for maintaining supporting documentation in the reporting package for all amounts and keeping staff trained on these SOPs.

View Audit 392890

Finding 1181621 (2024-009)

Material Weakness 2024

North Valley County Water and Sewer District

MT

Procurement, Suspension & Debarment § 200.213 § 200.303 § 200.318 § 200.320

The district will create an SOP for procurement activities moving forward as well as making sure to train staff responsible for procurement to ensure compliance with Federal compliance.

View Audit 392890

Finding 1181620 (2024-008)

Material Weakness 2024

North Valley County Water and Sewer District

MT

Allowable Costs / Cost Principles Material Weakness Matching / Level of Effort / Earmarking § 200.303 § 200.403

The Board of Directors for the district will be monitoring all filing to be able to account for documentation available within the district. Also, there will be implementing document control procedures for all costs and invoices within the district.

View Audit 392890

Finding 1181619 (2024-001)

Material Weakness 2024

Community Services Unlimited, Inc.

CA

HUD Housing Programs Internal Control / Segregation of Duties

Corrective Action: We agree with the finding and will implement recommended procedures immediately. We will continue preparing a roll forward schedule of net assets with donor restriction, and review/approve the schedule with the appropriate authorized individuals prior to presenting to the auditors...

Corrective Action: We agree with the finding and will implement recommended procedures immediately. We will continue preparing a roll forward schedule of net assets with donor restriction, and review/approve the schedule with the appropriate authorized individuals prior to presenting to the auditors at the commencement of the annual audit. Name of Contact Person: Heather Fenney, Co-Executive Director Proposed Completion Date: December 31, 2025.

View Audit 392889

Finding 1181487 (2024-010)

Material Weakness 2024

Community Action Committee of the Lehigh Valley, Inc. and Subsidiaries

PA

Procurement, Suspension & Debarment § 200.214 § 200.317 § 200.327

Material Weakness in Internal Control over Compliance Coronavirus State and Local Fiscal Recovery Funds – Assistance Listing No. 21.027 Condition: During audit testing of procurement and suspension and debarment requirements for the Coronavirus State and Local Fiscal Recovery Funds program, the Orga...

Material Weakness in Internal Control over Compliance Coronavirus State and Local Fiscal Recovery Funds – Assistance Listing No. 21.027 Condition: During audit testing of procurement and suspension and debarment requirements for the Coronavirus State and Local Fiscal Recovery Funds program, the Organization was unable to provide documentation supporting the procurement selections tested. Additionally, documentation evidencing verification of vendor suspension and debarment status was not available for the selections reviewed. Recommendation: The Organization should strengthen internal controls over procurement and suspension and debarment compliance by establishing and enforcing written procedures requiring documentation of procurement methods, vendor selection, and verification of suspension and debarment status prior to award.Management should ensure that all required documentation is retained in accordance with federal record retention requirements and subject to supervisory review. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The Organization implemented internal controls over procurement and suspension and debarment compliance. Management will require documented verification of vendor eligibility through appropriate federal and state exclusion checks or signed certification, as applicable, before any procurement is finalized. All procurement-related documentation—including procurement method determinations, vendor selection support, debarment verification evidence, and required certifications—will be subject to supervisory review to ensure completeness and compliance with federal requirements. The Organization will retain all procurement and debarment documentation in the official procurement or contract file in accordance with federal record-retention requirements. Name(s) of the contact person(s) responsible for corrective action: Dawn Godshall, Executive Director Planned completion date for corrective action plan: Planned completion date is June 30, 2026.

View Audit 392710

Finding 1181480 (2024-009)

Material Weakness 2024

Community Action Committee of the Lehigh Valley, Inc. and Subsidiaries

PA

Subrecipient Monitoring Material Weakness Reporting § 200.327 § 200.328 § 200.334

U.S. Department of Treasury • Material Weakness in Internal Control over Compliance Coronavirus State and Local Fiscal Recovery Funds – Assistance Listing No. 21.027 Condition: During audit testing of financial reporting for the Coronavirus State and Local Fiscal Recovery Funds program, the Organiza...

U.S. Department of Treasury • Material Weakness in Internal Control over Compliance Coronavirus State and Local Fiscal Recovery Funds – Assistance Listing No. 21.027 Condition: During audit testing of financial reporting for the Coronavirus State and Local Fiscal Recovery Funds program, the Organization was unable to locate three of ten financial reports requested for review. As a result, auditors were unable to verify the accuracy, completeness, or timeliness of the reported financial information for those reporting periods. Recommendation: The Organization should strengthen internal controls over financial reporting and record retention by establishing clear procedures to ensure that all required reports are accurately prepared, timely submitted, and retained in accordance with federal requirements. Management should designate responsible personnel and implement monitoring procedures to verify compliance with reporting and documentation standards. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The Organization will require that all supporting documentation related to financial reporting—including reports, source data, approvals, and correspondence—be retained electronically within Sage Intacct using standardized attachment and naming conventions. Management will implement periodic monitoring procedures, including supervisory review and internal spot checks, to verify that reports are timely submitted and that documentation is properly retained in Sage Intacct in accordance with applicable federal record-retention requirements. Name(s) of the contact person(s) responsible for corrective action: Dawn Godshall, Executive Director Planned completion date for corrective action plan: Planned completion date is June 30, 2025.

View Audit 392710

Finding 1181473 (2024-008)

Material Weakness 2024

Community Action Committee of the Lehigh Valley, Inc. and Subsidiaries

PA

Reporting Significant Deficiency Internal Control / Segregation of Duties

U.S. Department of Health and Human Services U.S. Department of Treasury • Significant Deficiency in Internal Control over Compliance Low-Income Home Energy Assistance - Assistance Listing No. 93.568 Coronavirus State and Local Fiscal Recovery Funds – Assistance Listing No. 21.027 Condition: During ...

U.S. Department of Health and Human Services U.S. Department of Treasury • Significant Deficiency in Internal Control over Compliance Low-Income Home Energy Assistance - Assistance Listing No. 93.568 Coronavirus State and Local Fiscal Recovery Funds – Assistance Listing No. 21.027 Condition: During our testing of performance and special reporting, we noted that the Organization did not maintain documentation evidencing review or approval of submitted reports. The reports tested did not include evidence demonstrating that an authorized individual reviewed and approved the performance and special reports prior to submission. Recommendation: The Organization should implement formal internal controls over performance and special reporting by establishing documented procedures that require review and approval of all reports prior to submission. Management should define clear roles and responsibilities for report preparation and independent review, ensure that reviews are performed by an authorized individual, and maintain documentation evidencing review and approval, such as signatures, dates, or electronic approvals, to support compliance with performance reporting requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The Organization will implement formal internal controls over performance and special reporting by developing and documenting standardized procedures for the preparation, review, and approval of all required federal performance and special reports. These procedures will clearly define roles and responsibilities for report preparation and independent review, including identification of authorized individuals responsible for final approval. Evidence of review and approval—including signatures, dates, or electronic approval records—will be retained in the grant file to support compliance with reporting requirements. Name(s) of the contact person(s) responsible for corrective action: Dawn Godshall, Executive Director Planned completion date for corrective action plan: Planned completion date is June 30, 2026.

View Audit 392710

Finding 1181459 (2024-007)

Material Weakness 2024

Community Action Committee of the Lehigh Valley, Inc. and Subsidiaries

PA

Allowable Costs / Cost Principles Period of Performance Material Weakness § 200.403

U.S. Department of Health and Human Services • Material Weakness in Internal Control over Compliance Community Service Block Grant – Assistance Listing No. 93.569 Condition: During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending da...

U.S. Department of Health and Human Services • Material Weakness in Internal Control over Compliance Community Service Block Grant – Assistance Listing No. 93.569 Condition: During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/23/23 - 1/5/24, which the first nine days were prior to the start of the period of performance. Recommendation: The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The Organization will strengthen internal controls over the recording of grant-related invoices and payroll expenditures by requiring expenses to be recorded based on the actual date services are incurred rather than invoice date or payroll period end date. Finance staff will be retrained on period-of-performance requirements for federal programs, and a secondary review will be implemented for all federal grant postings to verify proper timing prior to submission for reimbursement or drawdown. Name(s) of the contact person(s) responsible for corrective action: Dawn Godshall, Executive Director Planned completion date for corrective action plan: Planned completion date is June 30, 2025.

View Audit 392710

Finding 1181456 (2024-006)

Material Weakness 2024

Community Action Committee of the Lehigh Valley, Inc. and Subsidiaries

PA

Allowable Costs / Cost Principles Eligibility School Nutrition Programs

Significant Deficiency in Internal Control over Compliance The Emergency Food Assistance Program (Administrative); Commodity Supplemental Food Program (Administrative)– Assistance Listing No. 10.568 and 10.565 Condition: The Organization does not have formal procedures in place to determine the Seco...

Significant Deficiency in Internal Control over Compliance The Emergency Food Assistance Program (Administrative); Commodity Supplemental Food Program (Administrative)– Assistance Listing No. 10.568 and 10.565 Condition: The Organization does not have formal procedures in place to determine the Second Harvest Food Bank expenses incurred during the fiscal year that should be allocated to the TEFAP/CSFP administrative revenue received. The Organization has historically recognized revenue based on when cash is received which is not appropriate. Recommendation: We recommend the allocation of allowable costs and activities be completed at a minimum on a quarterly basis. Also, any direct expenses related to program activities should be recorded to the respectiveidentifying program fund number within the accounting software. The amount of revenue recognized for the programs should be reflected of the expenses incurred up to the administrative funds received from the respective funders. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The organization will implement a standard allocation to be completed on a quarterly basis at the minimum. This process will be reviewed by management to ensure implementation. Name(s) of the contact person(s) responsible for corrective action: Dawn Godshall, Executive Director Planned completion date for corrective action plan: Planned completion date is June 2026.

View Audit 392710

Finding 1181444 (2024-005)

Material Weakness 2024

Community Action Committee of the Lehigh Valley, Inc. and Subsidiaries

PA

Eligibility Subrecipient Monitoring Allowable Costs / Cost Principles

U.S. Department of Agriculture 2024-005 • Material Weakness in Internal Control over Compliance Food Distribution Cluster– Assistance Listing No. 10.569 Condition: During our testing, we identified there was no monitoring performed for 1 out of the 21 agencies tested which distributed TEFAP commodit...

U.S. Department of Agriculture 2024-005 • Material Weakness in Internal Control over Compliance Food Distribution Cluster– Assistance Listing No. 10.569 Condition: During our testing, we identified there was no monitoring performed for 1 out of the 21 agencies tested which distributed TEFAP commodities during fiscal year 2024. Recommendation: The Organization should prioritize the timely monitoring of participating agencies to allow for changes in food distributions if any ineligible participants are discovered. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The organization developed a schedule to complete monitoring and created a checklist to ensure that all documentation is in the appropriate folder. In addition, the organization began conducting internal audits to ensure the developed processes are being followed. Name(s) of the contact person(s) responsible for corrective action: Dawn Godshall, Executive Director Planned completion date for corrective action plan: Planned completion date is May 2026.

View Audit 392710

Finding 1181377 (2024-005)

Material Weakness 2024

South Big Horn Hospital District

WY

Reporting Significant Deficiency Matching / Level of Effort / Earmarking

2024-005 - Reporting Corrective Action Plan: Management agrees with the finding and has committed the resources giving rise to the finding. Person(s) Responsible: M. Michael Garza Timing for Implementation: June 30, 2026.

View Audit 392624

Finding 1181341 (2024-007)

Material Weakness 2024

Neighborhood Defender Service, Inc.

NY

Procurement, Suspension & Debarment § 200.317 § 200.318 § 200.327

The procurement policy will be formally reviewed and revised to ensure full alignment with 2 CFR Part 200.317–200.327. The updated policy will clearly outline all allowable procurement methods, including micro-purchases, small purchases, sealed bids (formal advertising), competitive proposals, and n...

The procurement policy will be formally reviewed and revised to ensure full alignment with 2 CFR Part 200.317–200.327. The updated policy will clearly outline all allowable procurement methods, including micro-purchases, small purchases, sealed bids (formal advertising), competitive proposals, and noncompetitive procurements. Management expects to have this implemented by April 1, 2026. The process is being monitored by Anthonia Ibe, Chief Financial Officer.

View Audit 392557

Finding 1181340 (2024-006)

Material Weakness 2024

Neighborhood Defender Service, Inc.

NY

Allowable Costs / Cost Principles § 200.403

NDS will implement a time study process to determine the appropriate allocation of staff time to federally funded programs due to limitations in the payroll system. This will replace the prior flat-rate allocation method and ensure salary charges to federal grants are supported by documented time an...

NDS will implement a time study process to determine the appropriate allocation of staff time to federally funded programs due to limitations in the payroll system. This will replace the prior flat-rate allocation method and ensure salary charges to federal grants are supported by documented time and actual work performed, consistent with Uniform Guidance requirements. Human Resources will maintain documentation of approved pay rates for audit and compliance purposes Management expects to have this implemented by April 30, 2026. The process is being monitored by Anthonia Ibe, Chief Financial Officer.

View Audit 392557

Finding 1181307 (2024-001)

Material Weakness 2024

FosterHub

OH

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.213

2024-001 – The Organization did not have a process to determine if vendors were suspended or debarred from receiving federal funds Auditor’s Recommendation: It is recommended that FosterHub develop and implement a suspension and debarment procedure to review the eligibility of vendors before enterin...

2024-001 – The Organization did not have a process to determine if vendors were suspended or debarred from receiving federal funds Auditor’s Recommendation: It is recommended that FosterHub develop and implement a suspension and debarment procedure to review the eligibility of vendors before entering into contracts. Training should be provided to all relevant staff to ensure awareness and compliance with federal requirements. Additionally, periodic monitoring and internal audits should be conducted to ensure adherence to the established procedures. Views of Responsible Officials and Planned Corrective Actions: Management acknowledges the finding and agrees with the recommendation. FosterHub will develop and implement a formal suspension and debarment procedure within the next three months. Training sessions will be conducted for all procurement staff to ensure understanding and compliance with the new procedure. Furthermore, periodic reviews will be instituted to monitor adherence to these requirements and to prevent the recurrence of this issue.

View Audit 392535

Finding 1180867 (2024-007)

Material Weakness 2024

City of South Gate

CA

Reporting § 200.327

Management agrees with the finding. In 2023, shortly after management was made aware procedures were put into place to properly oversee the timely submission of the SF-425 financial reports.

View Audit 392505

Finding 1180866 (2024-006)

Material Weakness 2024

City of South Gate

CA

Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.430

Management acknowledges the importance of ensuring that payroll costs charged to the program are consistent between the payroll system and the employee’s timesheet. The City continues to monitor its internal control process to ensure thorough review procedures are being followed. Timesheets are revi...

Management acknowledges the importance of ensuring that payroll costs charged to the program are consistent between the payroll system and the employee’s timesheet. The City continues to monitor its internal control process to ensure thorough review procedures are being followed. Timesheets are reviewed, bi-weekly, by payroll and adjusted to reflect actual hours as they relate to a specific activity. The City was able to hire a permanent accountant hiring who will provide additional oversight of these processes ensuring that hours worked are both reported correctly on the timesheets and are following the funding allocations that are approved by the grant.

View Audit 392505

Finding 1180864 (2024-005)

Material Weakness 2024

City of South Gate

CA

Allowable Costs / Cost Principles § 200.430

Management acknowledges the importance of ensuring that payroll costs charged to the program are consistent between the payroll system and the employee’s timesheet. The City continues to monitor its internal control process to ensure thorough review procedures are being followed. Timesheets are revi...

Management acknowledges the importance of ensuring that payroll costs charged to the program are consistent between the payroll system and the employee’s timesheet. The City continues to monitor its internal control process to ensure thorough review procedures are being followed. Timesheets are reviewed, bi-weekly, by payroll and adjusted to reflect actual hours as they relate to a specific activity. The City was able to hire a permanent accountant hiring who will provide additional oversight of these processes ensuring that hours worked are both reported correctly on the timesheets and are following the funding allocations that are approved by the grant.

View Audit 392505

Finding 1180833 (2024-004)

Material Weakness 2024

Maine School Administrative District No. 75

ME

Allowable Costs / Cost Principles § 200.302 § 200.403

Finding 2024-004 Internal control weakness over activities allowed/allowable costs Name of responsible official: Evan Howard – Business Manager Corrective action: With stabilized staffing in place, management is currently updating the District’s federal funds procurement and compliance policies to a...

Finding 2024-004 Internal control weakness over activities allowed/allowable costs Name of responsible official: Evan Howard – Business Manager Corrective action: With stabilized staffing in place, management is currently updating the District’s federal funds procurement and compliance policies to address Uniform Guidance requirements related to allowable and unallowable costs. In conjunction with this effort, management will design and implement internal control procedures to ensure that expenditures charged to grants are reviewed for allowability prior to payment. These procedures will include documented review and approval processes, supervisory oversight, and periodic monitoring to ensure ongoing compliance. Anticipated completion date: June 30,2026

View Audit 392493

Finding 1180830 (2024-003)

Material Weakness 2024

Maine School Administrative District No. 75

ME

Allowable Costs / Cost Principles Procurement, Suspension & Debarment § 200.302 § 200.317 § 200.318 § 200.327 § 200.430

Finding 2024-003 Material Weakness in Internal Control over Compliance Name of responsible official: Evan Howard – Business Manager Corrective action: The municipality is in the process of reviewing roles, responsibilities, and job descriptions to ensure appropriate segregation of duties and proper ...

Finding 2024-003 Material Weakness in Internal Control over Compliance Name of responsible official: Evan Howard – Business Manager Corrective action: The municipality is in the process of reviewing roles, responsibilities, and job descriptions to ensure appropriate segregation of duties and proper internal controls, in accordance with the Corrective Action Plan. The plan has not yet been formally adopted. Anticipated completion date: June 30,2026

View Audit 392493

Finding 1180824 (2024-003)

Material Weakness 2024

Porchlight, Inc.

WI

Procurement, Suspension & Debarment Material Weakness Period of Performance

Management agrees with the finding and has implemented corrective actions to improve documentation, grant tracking, and compliance processes. Grant transactions are now recorded and tracked within Sage Intacct using appropriate invoice dates and general ledger posting dates to ensure that expenses a...

Management agrees with the finding and has implemented corrective actions to improve documentation, grant tracking, and compliance processes. Grant transactions are now recorded and tracked within Sage Intacct using appropriate invoice dates and general ledger posting dates to ensure that expenses are recorded within the correct period of performance for each grant. Sage Intacct provides detailed grant reporting capabilities, allowing the organization to generate transaction‐level reports for individual grants. Documentation procedures have also been strengthened. Supporting documentation for expense transactions is attached directly to transactions within Sage Intacct and is also stored in organized files on Porchlight’s internal server to ensure documentation is readily available for review and audit purposes. Procurement approvals and related documentation are retained within Sage Intacct on a transactional level, archived email records, and internal file storage, ensuring that approvals are documented and accessible. The Financial Director is currently responsible for preparing and submitting grant performance reports. Porchlight is also in the process of recruiting a staff Grants Manager to further strengthen grant management, monitoring, and reporting responsibilities. Porchlight maintains a grant reporting calendar and tracking system, which is maintained electronically on the organization's internal server to ensure that all reporting deadlines are monitored and met. Grant documentation is now maintained in centralized and organized compliance files on the internal server, allowing staff and auditors to easily access grant documentation and supporting records. Management will continue to monitor grant compliance processes and documentation procedures to ensure ongoing compliance with funding requirements and reporting obligations. Person(s) Responsible: Halle Pollay Timing for Implementation: In process

View Audit 392484

Finding 1180823 (2024-002)

Material Weakness 2024

Porchlight, Inc.

WI

Reporting Significant Deficiency Matching / Level of Effort / Earmarking

Management agrees with the finding and has taken corrective action to ensure the timely completion and submission of the audit reporting package. With the implementation of Sage Intacct and the strengthening of internal accounting processes, Porchlight is now able to begin audit preparation earlier ...

Management agrees with the finding and has taken corrective action to ensure the timely completion and submission of the audit reporting package. With the implementation of Sage Intacct and the strengthening of internal accounting processes, Porchlight is now able to begin audit preparation earlier in the year. Regular monthly reconciliations and improved staff training have significantly reduced the number of adjustments required at year‐end. Financial statements will be prepared internally prior to the audit process, allowing management to review financial information earlier and provide complete information to the auditors in a timely manner. While certain reporting configurations within Sage Intacct continue to be refined, Porchlight is working with outside consultants experienced with the system to ensure reporting functionality operates effectively. Porchlight is also developing a formal year‐end close checklist and reporting calendar to ensure that all financial reporting tasks are completed on schedule and that audit preparation begins sufficiently in advance of reporting deadlines. The Finance Director, with oversight from the Executive Director, is responsible for monitoring audit timelines and, along with our auditors, ensure all deadlines for submission to the Federal Audit Clearinghouse are met. Staffing improvements and the engagement of external consultants have strengthened the organization’s capacity to complete the audit process in a timely manner. Management will continue to monitor internal timelines and reporting procedures to ensure future audit submissions are completed within required deadlines. Person(s) Responsible: Halle Pollay Timing for Implementation: In process

View Audit 392484

Finding 1180822 (2024-001)

Material Weakness 2024

Porchlight, Inc.

WI

Reporting Procurement, Suspension & Debarment Material Weakness

Management agrees with the finding and has implemented several corrective actions to strengthen internal controls and financial reporting processes. Porchlight implemented new accounting software in 2025, Sage Intacct, which includes a grants dimension that allows the organization to track financial...

Management agrees with the finding and has implemented several corrective actions to strengthen internal controls and financial reporting processes. Porchlight implemented new accounting software in 2025, Sage Intacct, which includes a grants dimension that allows the organization to track financial activity by individual grant and sub‐grant at the transaction level. This system enables the preparation of detailed grant‐level financial reports, including profit and loss statements for individual grants. Internal accounting working papers further document detailed line‐item tracking instructions of grant revenues and expenditures. These processes provide improved transparency and audit support for grant expenditures. Indirect costs are now allocated using a nights‐of‐shelter allocation methodology, which is consistent with guidance provided by Porchlight’s government partner organizations. This methodology has been documented and is applied consistently across applicable programs. Monthly reconciliations of significant general ledger accounts are now performed and documented on a regular basis. These reconciliations are reviewed by the Executive Director, who is currently completing additional training in our new accounting processes to further support this oversight function. Management will continue monitoring the reconciliation process to ensure it is completed in a timely and consistent manner. Journal entries will be reviewed on a monthly basis during scheduled meetings between the Executive Director and the Finance Director to ensure proper documentation and approval. Cash disbursement controls have also been strengthened. Accounts Payable staff prepare a weekly payment list, which is reviewed and approved by the Finance Director. The Executive Director then performs a secondary review and signs checks or approves payments. ACH transactions are submitted to the bank by the AP accountant, and require final authorization through the bank’s online system by either the Executive Director, or the Finance Director when the Executive Director is unavailable. These procedures provide documented authorization of cash disbursements. Consistent financial reporting to the Board is in the final processes. The reporting component of the Sage Intacct implementation has required additional refinement, and we are working with outside consultants who are familiar with our specific system setup to ensure reporting processes operate effectively. Financial reports will be presented to the Board of Directors Finance Committee, which meets with the Executive Director and Finance Director every two months to review financial performance and discuss financial results. Financial statements will be prepared internally prior to the audit, which improves management oversight and reduces the need for audit adjustments. Additionally, Porchlight has significantly strengthened its finance department staffing. A new Finance Director began full‐time employment in June 2024. New Accounts Payable and Accounts Receivable accountants, as well as accounting assistants, have been hired and trained on Porchlight’s financial procedures and Sage Intacct. External accounting consultants have also been engaged to assist with audit preparation, reconciliations, and other accounting functions when additional capacity is needed. Management will continue to evaluate internal controls and financial reporting processes to ensure compliance with applicable financial reporting and grant requirements. Person(s) Responsible: Halle Pollay Timing for Implementation: In Process

View Audit 392484

Finding 1180789 (2024-004)

Material Weakness 2024

St. Clare Apartments Housing Development Fund Company, Inc. 014-Ee140

NY

Name of auditee: St. Clare Apartments Housing Development Fund Company, Inc. TIN: 16-1524084 Name of audit firm: EFPR Group, CPAs, PLLC Period covered by audit: January 1, 2024 - December 31, 2024 CAP prepared by: John Lutz jlutz@christopher-community.org Current Findings on the Schedule of Findings...

Name of auditee: St. Clare Apartments Housing Development Fund Company, Inc. TIN: 16-1524084 Name of audit firm: EFPR Group, CPAs, PLLC Period covered by audit: January 1, 2024 - December 31, 2024 CAP prepared by: John Lutz jlutz@christopher-community.org Current Findings on the Schedule of Findings and Questioned Costs Finding 2024-004 The Company will work to engage its auditors to perform the December 31, 2025 audit in March of 2026 and complete the data collection form to the Federal Clearinghouse by the required due date. The current year data collection form will be completed and filed upon completion of this audit.

View Audit 392453

Corrective Action Plans

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