Corrective Action Plans

Finding 1227618 (2025-002)

Material Weakness 2025

MO

HUD Housing Programs

Criteria The compliance supplement states “Owners shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in a federally insured depository in an interest-bearing accou...

Criteria The compliance supplement states “Owners shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in a federally insured depository in an interest-bearing account. All earnings including interest on the reserve must be added to the reserve. An amount as required by HUD will be deposited monthly in the reserve fund (Regulatory Agreement, item 5 (a)). All disbursements from the reserve must be approved by HUD (24 CFR section 891.405).” Condition The monthly required deposit into the replacement reserve account was increased from $428 to $513 effective September 1, 2025. The deposits into the replacement reserve account were not increased as approved by HUD resulting in deficiency of $340. Cause The management agents did not implement the HUD approved required monthly increase in the replacement reserve deposits. Effect or potential effect The Organization is not in compliance with the requirements set forth by HUD related to its reserve for replacement account. Questioned Costs None Identification as a repeat finding Repeat finding Recommendation We recommend that the Organization deposit the deficient funds of $340 for the year ended December 31, 2025 as well as any deficiencies for the year ending December 31, 2026. Person Responsible for Implementation: Brian Watson, Chief Accounting Officer. Telephone (816) 463-0112 ext. 3016, Email bwatson@luinc.org Anticipated Completion Date: Late July or early August, 2026

View Audit 409635

Finding 1227616 (2025-003)

Material Weakness 2025

Decatur County

IN

Internal Control / Segregation of Duties § 200.1 § 200.303

FINDING 2025-003 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Contact Phone Number and Email Address: Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: We h...

FINDING 2025-003 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Contact Phone Number and Email Address: Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: We have contracted Baker Tilly to do the SLFRF report. We now send them all needed information to compile the report. The Auditor then reviews prior to submission. Anticipated Completion Date: April 30, 2026 INDIANA STATE

View Audit 409630

Finding 1227615 (2025-002)

Material Weakness 2025

Decatur County

IN

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.303

FINDING 2025-002 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Suspension and Debarment Contact Person Responsible for Corrective Action: Christy Smiley Contact Phone Number and Email Address: 812-663-2570; csmiley@decaturcounty.in.gov Views of Responsible Officials...

FINDING 2025-002 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Suspension and Debarment Contact Person Responsible for Corrective Action: Christy Smiley Contact Phone Number and Email Address: 812-663-2570; csmiley@decaturcounty.in.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: We put into policy to collect Suspension and Debarment certifications from vendors. In 2025 we collected paperwork from vendors that received bids. We did not collect from other vendors that did work for the County. We now are aware of this policy and better understand that every vendor that is awarded a contract of $25,000 or more must submit a no suspension and debarment verification form. Anticipated Completion Date: March 1, 2027

View Audit 409630

Finding 1227613 (2025-004)

Material Weakness 2025

Chattanooga Housing Authority

TN

Eligibility HUD Housing Programs Significant Deficiency

Finding Reference: 2025-004 Description of Finding: The Authority was unable to provide documentation to show income had been verified during reexamination for 3 tenants out of a sample of 40 tenants. Statement of Concurrence or Nonconcurrence: The Authority agrees with the finding. Corrective Actio...

Finding Reference: 2025-004 Description of Finding: The Authority was unable to provide documentation to show income had been verified during reexamination for 3 tenants out of a sample of 40 tenants. Statement of Concurrence or Nonconcurrence: The Authority agrees with the finding. Corrective Action: Staff will attend annual file compliance training and upcoming rent calculation training to reinforce documentation requirements and ensure accurate income determinations going forward. We have also updated our file checklists, staff are reviewing all tenant files and we have an internal file review process, as noted in Finding 2025-002, to help ensure staff obtain and maintain all required third-party documentation for income reexaminations Name of Contact Person: Curtis Lokey, Director of Finance, 423-752-4893, clokey@chahousing.org

View Audit 409622

Finding 1227612 (2025-003)

Material Weakness 2025

Chattanooga Housing Authority

TN

HUD Housing Programs Significant Deficiency Special Tests & Provisions

Finding Reference: 2025-003 Description of Finding: Contract rent adjustments were not applied to the calculation of rent for 4 tenants out of a sample of 40. Statement of Concurrence or Nonconcurrence: The Authority agrees with the finding. Corrective Action: Due to staffing challenges, some contra...

Finding Reference: 2025-003 Description of Finding: Contract rent adjustments were not applied to the calculation of rent for 4 tenants out of a sample of 40. Statement of Concurrence or Nonconcurrence: The Authority agrees with the finding. Corrective Action: Due to staffing challenges, some contract rent adjustments were implemented later than they should have been. We have since implemented a process to ensure contract rent adjustments are reviewed and applied timely. This process includes internal review procedures, and staff will receive annual training to reinforce contract rent requirements and help ensure adjustments are processed accurately and on time going forward.

View Audit 409622

Finding 1227611 (2025-002)

Material Weakness 2025

Chattanooga Housing Authority

TN

Eligibility HUD Housing Programs Significant Deficiency

Finding Reference: 2025-002 Description of Finding: The Authority was unable to provide all documents required to be maintained to determine eligibility. Statement of Concurrence or Nonconcurrence: The Authority agrees with the finding. Corrective Action: We have updated our file checklists to bette...

Finding Reference: 2025-002 Description of Finding: The Authority was unable to provide all documents required to be maintained to determine eligibility. Statement of Concurrence or Nonconcurrence: The Authority agrees with the finding. Corrective Action: We have updated our file checklists to better ensure that staff collect all required supporting documentation needed to determine eligibility during each reexamination. Staff received training on the new checklist format in late 2025 and have begun using the updated checklists. We are also reviewing all participant files to verify they are complete and compliant. In addition, we have an internal file review process that includes quality control reviews of a percentage of files at each site to help ensure required documentation is present and program requirements are being met. Staff will also attend annual file compliance training to reinforce documentation requirements and support continued compliance going forward.

View Audit 409622

Finding 1227610 (2025-001)

Material Weakness 2025

Chattanooga Housing Authority

TN

HUD Housing Programs Material Weakness Special Tests & Provisions

Finding Reference: 2025-001 Description of Finding: The Authority did not perform timely repairs on 18 units in accordance with housing quality inspection requirements. Statement of Concurrence or Nonconcurrence: The Authority agrees with the finding. Corrective Action: We currently have a process t...

Finding Reference: 2025-001 Description of Finding: The Authority did not perform timely repairs on 18 units in accordance with housing quality inspection requirements. Statement of Concurrence or Nonconcurrence: The Authority agrees with the finding. Corrective Action: We currently have a process to respond to all life-threatening and health and safety inspection deficiencies in a timely manner. To improve the process for all other inspection deficiencies, we are working on a way to use technology to automatically import inspection findings into our system instead of manually entering each work order. This will reduce the time it takes to create work orders, allowing repairs to be completed more quickly. The system will also provide documentation of completed repairs, helping ensure records are maintained.

View Audit 409622

Finding 1227609 (2025-001)

Material Weakness 2025

Housing Authority of Somerset

KY

Internal Control / Segregation of Duties Subrecipient Monitoring

We recommend the Housing Authority strengthen internal controls over the preparation and filing of unaudited REAC submissions by implementing formal review and approval procedures, maintaining supporting documentation for all submitted amounts, and ensuring submitted financial information is reconci...

We recommend the Housing Authority strengthen internal controls over the preparation and filing of unaudited REAC submissions by implementing formal review and approval procedures, maintaining supporting documentation for all submitted amounts, and ensuring submitted financial information is reconciled to the Authority’s accounting records prior to filing. Management should also establish a documented review checklist to verify completeness and accuracy before submission.

View Audit 409620

Finding 1227602 (2025-003)

Material Weakness 2025

TOWN OF RIVERHEAD

NY

Subrecipient Monitoring § 200.332

Corrective Action Plan: The Community Development department will review existing and future subrecipient agreements and update as necessary to ensure that all grant terms are identified in the agreements. Community Development will forward to Town Attorney’s office the specific Federal Agency templ...

Corrective Action Plan: The Community Development department will review existing and future subrecipient agreements and update as necessary to ensure that all grant terms are identified in the agreements. Community Development will forward to Town Attorney’s office the specific Federal Agency template for subrecipient agreements, when available, and tailor the template to ensure that the subrecipient agreement includes specific details for each individual agreement. The Community Development department will also establish and implement procedures to monitor the subrecipient’s expenditures for allowability and compliance with procurement requirements prior to submission of requests for payment to the EPA for all existing and future subrecipient agreements. Responsible Individual: Joseph Maiorana, Assistant Community Development Project Supervisor, Town of Riverhead, is the employee responsible for development and implementation of the procedures for the EPA grant and any other existing grants specifically assigned to him. Dawn Thomas, Town of Riverhead Community Development Director, will be the employee responsible for review and supervision to ensure that the corrective action plan is implemented by all staff and that all written policies and procedures are adhered to for all existing and future grants. Planned Date of Implementation: September 30, 2026

View Audit 409614

Finding 1227601 (2025-002)

Material Weakness 2025

TOWN OF RIVERHEAD

NY

Reporting Internal Control / Segregation of Duties § 200.329

Corrective Action Plan: The Community Development department will establish written procedures for federal performance reporting that includes a reporting calendar, assigned responsibilities, supervisory review, verification against grant and financial records, timely submission and retention of doc...

Corrective Action Plan: The Community Development department will establish written procedures for federal performance reporting that includes a reporting calendar, assigned responsibilities, supervisory review, verification against grant and financial records, timely submission and retention of documentation demonstrating federal acceptance. The written policy will be reviewed annually and updated as needed. All Community Development staff will be trained on the procedures upon implementation and when updates are made. Responsible Individual: Joseph Maiorana, Assistant Community Development Project Supervisor, Town of Riverhead, is the employee responsible for development and implementation of the procedures for the EPA grant and any other existing grants specifically assigned to him. Dawn Thomas, Town of Riverhead Community Development Director, will be the employee responsible for review and supervision to ensure that the corrective action plan is implemented by all staff and that all written policies and procedures are adhered to for all existing and future grants. Planned Date of Implementation: September 30, 2026

View Audit 409614

Finding 1227600 (2025-002)

Material Weakness 2025

Northwest Kansas Area Transit Coordinating Council, INC

KS

Reporting

As new acting CTD President there will be a document / calendar created with all priority dates of required audits, etc. to be certain that all CTD officers are aware of these requirements. CTD President & Treasure will plan to complete all audits and filings in a timely manner to be finished prior ...

As new acting CTD President there will be a document / calendar created with all priority dates of required audits, etc. to be certain that all CTD officers are aware of these requirements. CTD President & Treasure will plan to complete all audits and filings in a timely manner to be finished prior to any and all deadlines.

View Audit 409611

Finding 1227599 (2025-001)

Material Weakness 2025

Northwest Kansas Area Transit Coordinating Council, INC

KS

Reporting

As new acting CTD President there will be a document / calendar created with all priority dates of audits, etc. to be certain that all CTD officers are aware of these requirements. CTD President & Treasure will plan to complete all audits and filings in a timely manner to be finished prior to any an...

As new acting CTD President there will be a document / calendar created with all priority dates of audits, etc. to be certain that all CTD officers are aware of these requirements. CTD President & Treasure will plan to complete all audits and filings in a timely manner to be finished prior to any and all deadlines.

View Audit 409611

Finding 1227598 (2025-004)

Material Weakness 2025

Access Alaska, Inc.

MI

Reporting Material Weakness § 200.512

Late Reporting and Noncompliance with Reporting Requirements Name of Contact Person: Eric L. Gurley, Executive Director Corrective Action Plan: Access Alaska has gained efficiencies and personnel through contracted relationships to use to implement timely reporting and filing requirements. Timelines...

Late Reporting and Noncompliance with Reporting Requirements Name of Contact Person: Eric L. Gurley, Executive Director Corrective Action Plan: Access Alaska has gained efficiencies and personnel through contracted relationships to use to implement timely reporting and filing requirements. Timelines, timetables, and responsible parties are in place to ensure completion. Proposed Completion Date: September 30, 2026.

View Audit 409607

Finding 1227597 (2025-002)

Material Weakness 2025

Alaska Ocean Observing System

AK

Subrecipient Monitoring Reporting Significant Deficiency

Significant Deficiency in Internal Control Over Compliance and Noncompliance Related to Reporting for the Federal Funding Accountability and Transparency Act. Contact Person: Sheyna Wisdom, Executive Director, AOOS Management Response: AOOS concurs with the finding and acknowledges that internal pro...

Significant Deficiency in Internal Control Over Compliance and Noncompliance Related to Reporting for the Federal Funding Accountability and Transparency Act. Contact Person: Sheyna Wisdom, Executive Director, AOOS Management Response: AOOS concurs with the finding and acknowledges that internal procedures and oversight were insufficient to ensure timely FFATA subaward reporting. Corrective Action: To address this deficiency, AOOS will update its subaward monitoring controls to ensure full compliance with 2 CFR Part 170. Specifically, AOOS will: • Assign dedicated responsibility to designated staff to file subaward reports in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) by the end of the month following subaward execution. • Implement a monthly supervisory review to verify FSRS filing submissions and archive confirmation records in the subaward files. • Retroactively submit the missing FY25 FFATA reports into FSRS. 1007 W. Third Avenue, Suite 100 Anchorage, AK 99501 907.644.6753 www.aoos.org Anticipated Completion Date: September 30, 2026

View Audit 409601

Finding 1227591 (2025-001)

Material Weakness 2025

Alaska Ocean Observing System

AK

Allowable Costs / Cost Principles Cash Management Reporting

1007 W. Third Avenue, Suite 100 Anchorage, AK 99501 907.644.6753 www.aoos.org August 17, 2026 CORRECTIVE ACTION PLAN Finding Number 2025-001 Significant Deficiency in Cash Management Compliance Documentation Contact Person: Sheyna Wisdom, Executive Director, AOOS Management Response: AOOS concurs wi...

1007 W. Third Avenue, Suite 100 Anchorage, AK 99501 907.644.6753 www.aoos.org August 17, 2026 CORRECTIVE ACTION PLAN Finding Number 2025-001 Significant Deficiency in Cash Management Compliance Documentation Contact Person: Sheyna Wisdom, Executive Director, AOOS Management Response: AOOS concurs with the finding and acknowledges the necessity of maintaining clear, accessible documentation linking individual federal cash draws directly to specific allowable expenditures incurred. Corrective action: To address this deficiency, AOOS, in coordination with its fiscal sponsor (Alaska SeaLife Center), will establish and formalize a standardized procedure for cash draw requests. Specifically, AOOS will: • Implement documentation for every ASAP drawdown request, which will include detailed general ledger expenditure reports, invoice registers, or transaction listings matching the exact draw amount. • Establish a dual-review process requiring formal written sign-off by both AOOS and Alaska SeaLife Center prior to executing funds transfers in ASAP. • Maintain permanent digital archives of all draw support packets and perform quarterly reconciliations between ASAP drawdowns, general ledger accounts, and SEFA reporting. Anticipated completion date: September 30, 2026

View Audit 409601

Finding 1227585 (2025-008)

Material Weakness 2025

Humboldt Park Health, Inc.

IL

HUD Housing Programs Subrecipient Monitoring Material Weakness § 200.303

Condition: Controls were not designed or implemented effectively to ensure: 1. Mortgage and escrow payments were made in accordance with the due dates and amounts specified in the executed mortgage note agreement. 2. Earnings are retained in the replacement reserve account 3. The Organization comple...

Condition: Controls were not designed or implemented effectively to ensure: 1. Mortgage and escrow payments were made in accordance with the due dates and amounts specified in the executed mortgage note agreement. 2. Earnings are retained in the replacement reserve account 3. The Organization completes the required financial reports in accordance with the applicable accounting basis, supported by underlying records representing the activity for the period reported. Planned Corrective Action: Management will design and implement internal controls to ensure compliance with mortgage escrow payments, reserve account funding, and quarterly financial reporting requirements, including a process to ensure that documentation of reviews is retained. Contact person responsible for corrective action: Louise Arzu, Vice President, Finance Anticipated Completion Date: 9/30/2026

View Audit 409598

Finding 1227584 (2025-007)

Material Weakness 2025

Humboldt Park Health, Inc.

IL

HUD Housing Programs Reporting Internal Control / Segregation of Duties

Condition: The Organization did not submit the budget to HUD within 30 days of the start of its fiscal year. Planned Corrective Action: Management has implemented a new review and oversight process related to the process for the budget submissions in question to ensure timely submission on a go-forw...

Condition: The Organization did not submit the budget to HUD within 30 days of the start of its fiscal year. Planned Corrective Action: Management has implemented a new review and oversight process related to the process for the budget submissions in question to ensure timely submission on a go-forward basis. Contact person responsible for corrective action: Louise Arzu, Vice President, Finance Anticipated Completion Date: 9/30/2026

View Audit 409598

Finding 1227583 (2025-002)

Material Weakness 2025

Dubois County

IN

Subrecipient Monitoring Internal Control / Segregation of Duties Allowable Costs / Cost Principles § 200.1 § 200.303

FINDING 2025-002 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Sandra L Morton Contact Phone Number and Email Address: 812-481-7000 slmorton@duboiscountyin.org Views of Responsible Officials: We disagree wi...

FINDING 2025-002 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Sandra L Morton Contact Phone Number and Email Address: 812-481-7000 slmorton@duboiscountyin.org Views of Responsible Officials: We disagree with the finding that the 2025 Annual P & E report current obligations were overstated by $8,300,967, which was the amount of cumulative obligations. Explanation and Reasons for Disagreement: We do not believe there was a systemic lack of effective internal controls or noncompliance throughout the audit period. We determined that the funds were fully obligated and reported the amount based on that interpretation, as was done on the previous reports submitted.

View Audit 409595

Finding 1227582 (2025-001)

Material Weakness 2025

DOVER TOWNSHIP

PA

Procurement, Suspension & Debarment

The Township will create a suspension and debarment policy and is in the process of verifying that vendors all have System for Awards Management registrations proving each vendor is not debarred, suspended or otherwise excluded.

View Audit 409594

Finding 1227581 (2025-005)

Material Weakness 2025

Lemoyne-Owen College

TN

Student Financial Aid Subrecipient Monitoring Cash Management

Finding 2025-005 - Untimely Release of Title IV Credit Balances (Significant Deficiency): Condition - During testing of student account activity, we identified that fourteen (14) out of sixty (60) sampled students had Title IV created credit balances that remained on their accounts for more than 14 ...

Finding 2025-005 - Untimely Release of Title IV Credit Balances (Significant Deficiency): Condition - During testing of student account activity, we identified that fourteen (14) out of sixty (60) sampled students had Title IV created credit balances that remained on their accounts for more than 14 days without being released to the student or parent. All refunds were eventually released to the students. Corrertive Action Plan The College experienced significant staff turnover within the business office. In addition, the College is undergoing conversion to a new Enterprise Resource Planning (ERP) system which affected its ability to complete some functions within a timely manner. A new bursar was hired in May 2026. Timely processing of student refunds was emphasized during her training. Going forward, student refunds will be released within 14 days after credit balances are reflected on student accounts." Completion Date - September 30, 2026 Responsible Party - Chief Financial Officer

View Audit 409592

Finding 1227577 (2025-004)

Material Weakness 2025

Lemoyne-Owen College

TN

Cash Management Internal Control / Segregation of Duties § 200.303 § 200.305 § 200.308

Finding 2025-004 - Various Federal Programs: Cash Management- Excess Federal Cash, Untimely Reconciliations [Material Weakness}: Condition - At June 30, 2025, the College maintained excess federal cash balances across multiple federal programs, indicating that cash drawdowns and/or payable balances ...

Finding 2025-004 - Various Federal Programs: Cash Management- Excess Federal Cash, Untimely Reconciliations [Material Weakness}: Condition - At June 30, 2025, the College maintained excess federal cash balances across multiple federal programs, indicating that cash drawdowns and/or payable balances were not aligned with immediate cash needs for allowable program expenditures. These balances represented federal funds drawn or recorded as payable to federal agencies that were not supported by actual and immediate allowable program expenditures at year-end. The following table summarizes excess federal cash balances identified by program as of June 30, 2025: "Federal Program" "Excess Cash" "Minority Science and Engineering Improvement Program" 120,031 "Science Consortium of Minority Schools" 169,907 "NSF - Empowerment of Undergraduate STEM Majors" 94,801 "NSF - Tennessee Louis Stokes TLSAMP" 54,834 "Title III" 455,679 "FUTURE" 188,215 "Total Identified Excess Cash" 1,083,467 The College did not adequately reconcile federal cash activity to underlying grant expenditures on a timely basis and did not ensure that drawdowns were limited to amounts necessary to meet immediate cash needs. In addition, the College lacked effective monitoring controls to identify and resolve excess cash positions across federal programs in a timely manner. Federal bank reconciliations were untimely and error prone. Corrections occurred only after auditor inquiry. Federal accounts also earned excess interest. Corrective Action Plan The College requests drawdowns for Title Ill and FUTURE programs on a reimbursable basis, including review and approval procedures. Of the total amount identified for the Title Ill program, a $181,433 receivable related to FY2025. The balance related to prior year(s) activity. The College will review its Federal program cost allocation procedures to ensure all eligible costs are properly identified and supported going forward. The College has engaged two accounting firms to assist with staff training and bring all reconciliations current. In addition, standard month-end and year-end closing procedures will be implemented to address timely, accurate Federal program reconciliations and audit readiness going forward. The College experienced significant staff turnover within its business office. In addition, the College is undergoing conversion to a new Enterprise Resource Planning (ERP) system which affected its ability to complete some functions within a timely manner. Completion Date - September 30, 2026 Responsible Party - Chief Financial Officer

View Audit 409592

Finding 1227572 (2025-003)

Material Weakness 2025

Lemoyne-Owen College

TN

Cash Management § 200.305

Finding 2025-003 - U.S. Department of Education [ED) - Federal Work Study - Noncompliance with Cash Management [Material Weakness): Condition -As of June 30, 2025, the College reported excess federal cash of $415,971 related to the Federal Work-Study Program. The excess cash represented cumulative f...

Finding 2025-003 - U.S. Department of Education [ED) - Federal Work Study - Noncompliance with Cash Management [Material Weakness): Condition -As of June 30, 2025, the College reported excess federal cash of $415,971 related to the Federal Work-Study Program. The excess cash represented cumulative federal funds drawn down through the federal payment system that were not disbursed or allowable Federal Work-Study payroll costs at year-end. The excess cash balance included amounts related to prior award years that had not been fully liquidated through reimbursement of allowable student wage expenditures or returned to the U.S. Department of Education as of June 30, 2025. Corrective Action Plan The College requests drawdowns for the Federal Work Study Program on a reimbursable basis, including review and approval procedures. Of the total amount identified, $26,466 related to FY2025, with the balance relating to prior year(s) activity. The College will review its Federal Work Study Program cost allocation procedures to ensure all eligible costs are properly identified and supported. The College has engaged two accounting firms to assist with staff training and bring all reconciliations current. In addition, standard month-end and year-end closing procedures will be implemented to address timely, accurate Federal Work Study Program reconciliations and audit readiness going forward. Completion Date - September 30, 2026 Responsible Party - Chief Financial Officer

View Audit 409592

Finding 1227571 (2025-001)

Material Weakness 2025

Association of University Technology Managers, Inc.

DC

Material Weakness Reporting Internal Control / Segregation of Duties

July 28, 2026 U.S. Department of Commerce 1401 Constitution Ave., NW Washington, D.C. 20230 Association of University Technology Managers, Inc. (the Association) and its affiliate AUTM Foundation, Inc. (the Foundation, and collectively, the Organization) respectfully submit the following corrective ...

July 28, 2026 U.S. Department of Commerce 1401 Constitution Ave., NW Washington, D.C. 20230 Association of University Technology Managers, Inc. (the Association) and its affiliate AUTM Foundation, Inc. (the Foundation, and collectively, the Organization) respectfully submit the following corrective action plan for the year ended December 31, 2025. Name and address of independent public accounting firm: Blue & Company, LLC 250 West Main Street, Suite 2900 Lexington, Kentucky 40507 The finding from the schedule of findings and questioned costs (the Schedule) for the year ended December 31, 2025 is discussed below and is numbered consistently with the number assigned in the Schedule. Identifying Number: 2025-001 Finding: Material weakness related to consolidation of affiliate. In previous years the Association did not consolidate the assets, liabilities, net assets, revenues, and expenses of the Foundation with the financials of the Association. This was incorrect because, under Accounting Standards Codification (ASC) 958-810, the Association has a controlling financial interest in the Foundation—as its sole corporate member, with authority to appoint and remove all of the Foundation’s trustees—and an economic interest in the Foundation, so consolidation is required. The 2025 consolidated financial statements correct this, including a restatement of the beginning balance of net assets. Corrective Actions Taken or Planned: The issue occurred due to a misunderstanding of GAAP rules related to affiliated entities. Previously, management’s understanding was that common board members were the primary consideration for consolidation. The Organization has (1) consolidated the Foundation effective for the year ended December 31, 2025, with beginning net assets restated and intercompany balances eliminated; and (2) will implement a documented annual affiliated-entity assessment, performed as part of the year-end close, under which finance evaluates each related or affiliated entity against the ASC 958-810 criteria—controlling financial interest and economic interest—to determine whether consolidation is required. The assessment will be documented, reviewed and approved by the Senior Director of Finance, and reported to the Audit Committee. At this time, the Organization has no affiliated entity other than the Foundation, whose consolidation will be re-confirmed under this control each year. Estimated Completion Date: The correction is complete with the issuance of the 2025 consolidated financial statements; the recurring annual control is effective beginning with the December 31, 2026 year-end close. Responsible Personnel: Cody Embry, Senior Director of Finance, with oversight by the Audit Committee of the Board of Directors. If you have any questions or would like any additional information regarding these matters, please let us know and we will be happy to provide. Sincerely, L. Cody Embry, CPA Senior Director of Finance

View Audit 409589

Finding 1227570 (2025-001)

Material Weakness 2025

Central Alabama Electric Cooperative, Inc.

AL

Management does not believe that the finding warrants a corrective plan, as it was not the result of noncompliance with established procedures. The Cooperative believes that the volume of contractor work, material availability constraints, and the transfer of related documentation collectively contr...

Management does not believe that the finding warrants a corrective plan, as it was not the result of noncompliance with established procedures. The Cooperative believes that the volume of contractor work, material availability constraints, and the transfer of related documentation collectively contributed to the error.

View Audit 409581

Finding 1227570 (2025-001)

Material Weakness 2025

Central Alabama Electric Cooperative, Inc.

AL

Based on our review, the Cooperative followed its established fiber warehouse procedures. The Cooperative remains committed to maintaining strong internal controls and will continue to monitor processes to support operational accuracy and efficiency.

View Audit 409581

Corrective Action Plans

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