Corrective Action Plans

Finding 1206151 (2023-003)

Material Weakness 2023

Basin Transit Service Transportation District

OR

Procurement, Suspension & Debarment

Condition: The District does not have an established policy or procurement protocol in place to ensure vendor verification through one of the three methods defined in federal compliance requirements. Cause: This condition appears to be the result of a lack of internal controls designed to ensure com...

Condition: The District does not have an established policy or procurement protocol in place to ensure vendor verification through one of the three methods defined in federal compliance requirements. Cause: This condition appears to be the result of a lack of internal controls designed to ensure compliance with Uniform Guidance. Auditor Recommendation: We recommend that the District update their procurement policies and processes to ensure that suspension and debarment compliance requirements are being met and effective internal controls are in place. Plan of Action: The District updated its procurement policies and proceudres to ensure compliance with federal suspension and debarement requirements under Uniform Guidance. The revised procurement policy establishes procedures requiring verification that vendors are not suspended or debarred prior to entering into contracts or making purchases using federal funds. The policy requires the Finance Department to verify vendors eligibility through one of the approved federal methods, including review of the System for Award Management (SAM.gov), obtaining vendor certifications regarding suspension and debarment status, or incorporating suspension and debarment verification language infor applicable contracts. Documentation of the verification process will be maintained with procurements records. These procedures are designed to stengthen internal controls over procurement activities and ensure the District maintains compliance with both State and Federal procurement requirements. Date of implementation: Corrective action was implemented in February 2026 when the District presented an updated Procurement Policy to the Board of Directors, which was formally approved. The revised policy includes procedures to ensure compliance with federal suspension and debarment requirements. Following Board approval, the Finance Department began implementing the updated procedures for vendor verification and maintaining documentation of suspension and debarment checks as part of procurement records. There procedures are now incorporated into the District's procurement processes to ensure ongoing compliance with federal requirements.

View Audit 398129

Finding 1206147 (2023-002)

Material Weakness 2023

Basin Transit Service Transportation District

OR

Equipment & Real Property Management

Condition: Equipment records do not include the source of funding which includes the federal award identification number, who holds the title, the federal participation rate, and the location, use and condition of the asset to be in accordance with the Uniform Guidance. Cause: This condition appears...

Condition: Equipment records do not include the source of funding which includes the federal award identification number, who holds the title, the federal participation rate, and the location, use and condition of the asset to be in accordance with the Uniform Guidance. Cause: This condition appears to be the result of a lack of internal controls designed to ensure compliance with Uniform Guidance. Auditor Recommendation: We recommend that the District develop policies to ensure that assets acquired with federal funds are properly identified in capital assets records. Plan of Action: The District's plan is a two-pronged approach to ensure that appropriate policies and procedures are in place and that recoding assets whose resources include federal funds will clearly indicate the federal award identification number, who holds the title, the participation rate, the location, use, and condition that the asset is to be put to in accordance with uniform guidance. A. The District will implement a robust Capital Asset Policy to be reviewed and approved by the District's Board of Directors, Standard Operation Procedures will accompany the policy and there will be the standard guidelines in which all capital assets will be treated, regardless of where the funding resources are generated from. B. The District plans to use its accounting software, SAGE 50, and capital asset software, FAS, to document funding resources, which should include all the required information as noted in Uniform Guidance. Additionally, capital asset invoices will include proper documentation showing the funding resources and required information. Date of implementation: Corrective actions began in October 2025 and are being implemented through June 2026. In October 2025, the District developed standardized documentation to accompany capital asset acquisitions and disposals to ensure required funding source information and asset details are consistently recorded. Beginning July 1, 2025, the District began using its accounting software (SAGE 50) to track purchases funded with State or Federal sources. The Finance Department will apply this procedure to earlier capital asset records as time permits in order to improve the completeness of historical records. On February 25, 2026, the District's Board of Directors formally reviewed and approved the District's Capital Asset Policy, which establishes consistent requirements for identifying, tracking, and reporting capital assets regardless of funding source. Supporting written procedures and process documentation are being finalized and are expected to be completed by June, 30, 2026.

View Audit 398129

Finding 1206115 (2023-001)

Material Weakness 2023

CITY OF FARRELL

PA

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Reporting § 200.403

CONDITION: During the calendar year 2023, the City did not record the necessary adjustments to the various ‘Fund’ general ledgers of the City to properly reconcile certain balance sheet accounts, such as interfund receivables and payables, and payroll-related liabilities to the underlying supporting...

CONDITION: During the calendar year 2023, the City did not record the necessary adjustments to the various ‘Fund’ general ledgers of the City to properly reconcile certain balance sheet accounts, such as interfund receivables and payables, and payroll-related liabilities to the underlying supporting documentation available at the City. This included the City’s Community Development Block Grant (CDBG) Program. As a result, the financial position and results of operations as shown throughout the calendar year were inaccurately stated. CRITERIA: Prudent internal control procedures in the areas of general ledger management and financial reporting include the reconciliation of all general ledger account balances to underlying supporting documentation monthly with independent oversight and approval as part of the process. In specific as it relates to federal programs, Section 2 CFR 200.403(g) of the Uniform Guidance requires that federal costs must be adequately documented which would include the City’s Federal Programs general ledger which accounts for the financial activity of the City’s Community Development Block Grant Program.MANAGEMENT’S CORRECTIVE ACTION PLAN: Management of the City is reviewing the options as presented by the Audit Firm’s recommendation for feasibility considering current manpower, expertise, and budgetary constraints. In addition, the City plans to ensure that written procedures for all accounting functions are implemented, reviewed and updated as necessary with the objective of ensuring that all applicable balance sheet account balances are accurate and supported by the underlying documentation available at the City. The City is currently in continuous communication with the Audit Firm for specific recommendations regarding the handling of interfund receivables and payables, and payroll-related liabilities, so as to ensure the accuracy of the City’s financial reporting. The timeframe for completion of this review will occur during the first six months of calendar year 2026 with the intention of having the City be in full compliance with Section 2 CFR 200.403(g) of the Uniform Guidance which requires federal costs to be adequately documented which would include the applicable general ledgers of the City.

View Audit 398080

Finding 1206104 (2023-006)

Material Weakness 2023

Future Ready Five

OH

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting § 200.512

Reference Number: 2023-06 Finding Type: Noncompliance with Uniform Guidance Requirements Description of Finding: 2 CFR section 200.512(a) requires auditees to submit the Single Audit reporting package to the Federal Audit Clearinghouse (FAC) no later than the earlier of: 30 calendar days after recei...

Reference Number: 2023-06 Finding Type: Noncompliance with Uniform Guidance Requirements Description of Finding: 2 CFR section 200.512(a) requires auditees to submit the Single Audit reporting package to the Federal Audit Clearinghouse (FAC) no later than the earlier of: 30 calendar days after receipt of the auditor’s report(s), or 9 months after the end of the audit period. The Organization did not submit the single audit reporting package to the FAC within the required timeframe. The late filing resulted from delays in completing the audit caused by the identification and remediation of internal control matters during the audit process, combined with staff turnover in key financial reporting positions. Failure to timely submit the reporting package causes the Organization to be out of compliance with Uniform Guidance requirements and may result in increased federal oversight, potential sanctions or withholding of federal funds. Statement of Concurrence: Management agrees with the finding. Corrective Action: The organization recognizes that the Single Audit Report will be delayed for the 18-month period ended June 30, 2025, as the deadline to submit is March 31, 2026 and the audit has not yet commenced. The organization will ensure that the Single Audit Report will be submitted by August 31, 2026, and subsequent Single Audit Reports will be submitted by the deadline. Completion Date: August 31, 2026 Name of Contact Person: Maureen Thomas Chief Financial Officer 917-405-7185 maureen@frfive.org

View Audit 398055

Finding 1206103 (2023-005)

Material Weakness 2023

Future Ready Five

OH

Procurement, Suspension & Debarment § 200.318 § 200.326

Reference Number: 2023-05 Finding Type: Significant Deficiency in Internal Control Over Compliance Description of Finding: The Organization did not follow required procurement procedures for subrecipient transactions. Though a procurement policy exists for the Organization, there was no enforcement ...

Reference Number: 2023-05 Finding Type: Significant Deficiency in Internal Control Over Compliance Description of Finding: The Organization did not follow required procurement procedures for subrecipient transactions. Though a procurement policy exists for the Organization, there was no enforcement of this policy for the federal program. Failure to follow a formal procurement policy causes the Organization to be out of compliance with Uniform Guidance and/or grant requirements and increases the likelihood of disallowance of costs. Statement of Concurrence: Management agrees with the finding, however the subrecipient was formally designated budget for the federal program by the pass-through grantor which is why a formal procurement process was not followed. The subrecipient received the same allocated federal funds for the same services provided in the prior year. Corrective Action: The Organization will review internal policies and procedures and ensure that it follows procurement practice for subrecipients under 2 CFR Sections 200.318 – 200.326. Completion Date: March 31, 2026 Name of Contact Person: Maureen Thomas Chief Financial Officer 917-405-7185 maureen@frfive.org

View Audit 398055

Finding 1206102 (2023-004)

Material Weakness 2023

Future Ready Five

OH

Reporting Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

Reference Number: 2023-04 Finding Type: Significant Deficiency in Internal Control Over Compliance Description of Finding: During the audit, it was noted that the Organization was unable to provide formal support for the internal review of required reports under the major program before they were su...

Reference Number: 2023-04 Finding Type: Significant Deficiency in Internal Control Over Compliance Description of Finding: During the audit, it was noted that the Organization was unable to provide formal support for the internal review of required reports under the major program before they were submitted to the pass-through grantor. The Organization lacks established procedures which provide formal evidence that the accuracy and completeness of required reports was verified before submission. Without formal review controls in place, the Organization is more susceptible to reporting errors and/or noncompliance with federal requirements. Statement of Concurrence: Management agrees with the finding. Corrective Action: The Chief Financial Officer prepares the required reports, and the Chief Executive has informally approved the reports prior to submission. A formal review by the Chief Executive Officer has been implemented to document in writing the review by the Chief Executive Office prior to submission. Completion Date: January 31, 2026 Name of Contact Person: Maureen Thomas Chief Financial Officer 917-405-7185 maureen@frfive.org

View Audit 398055

Finding 1206101 (2023-003)

Material Weakness 2023

Future Ready Five

OH

Subrecipient Monitoring Reporting

Reference Number: 2023-03 Finding Type: Noncompliance with Major Program Requirement Description of Finding: Franklin County Department of Job and Family Services (the pass-through grantor) requires submission of monthly invoicing within 15 calendar days of each month-end. Additionally, a program re...

Reference Number: 2023-03 Finding Type: Noncompliance with Major Program Requirement Description of Finding: Franklin County Department of Job and Family Services (the pass-through grantor) requires submission of monthly invoicing within 15 calendar days of each month-end. Additionally, a program report is required to be submitted monthly under the subaward agreement. One monthly invoice was identified as being submitted to the pass-through grantor after the deadline. No monthly program report was submitted for December 2023. The reason for the finding is resource constraints and lack of timeliness in the Organization’s cost reconciliation process. The requirement to submit the monthly program report was informally waived by the pass-through grantor. Failure to submit reports timely causes the Organization to be out of compliance with grant requirements. Statement of Concurrence: Management agrees with the finding. Corrective Action: The pass-through grantor informally granted that invoices and program reports be submitted quarterly. The pass-through grantor has since provided formal documentation to the auditors that it has allowed invoices and program reports to be submitted quarterly. Completion Date: February 2026 Name of Contact Person: Maureen Thomas Chief Financial Officer 917-405-7185 maureen@frfive.org

View Audit 398055

Finding 1206100 (2023-002)

Material Weakness 2023

Future Ready Five

OH

Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303

Reference Number: 2023-02 Finding Type: Significant Deficiency in Internal Control Over Compliance Description of Finding: During the audit, it was noted that the Organization was unable to provide formal support for the internal review of costs submitted to the pass-through grantor under the major ...

Reference Number: 2023-02 Finding Type: Significant Deficiency in Internal Control Over Compliance Description of Finding: During the audit, it was noted that the Organization was unable to provide formal support for the internal review of costs submitted to the pass-through grantor under the major program. The Organization lacks established procedures which provide formal evidence that the allowability, accuracy and completeness of transactions were verified before submission. Without adequate internal controls in place to ensure that all charges to the federal program are properly reviewed for allowability, the Organization faces increased risk of noncompliance with the allowability requirement and could request funds for unallowed costs. Statement of Concurrence: Management agrees with the finding. Corrective Action: Beginning July 2025, management implemented a formal review process in Blackbaud Financial Edge NXT for the Director of RISE and the Chief Operating Officer to review and approve all invoices prior to submission to the Chief Financial Officer to ensure all charges are allowed. All invoices $25,000 and over are also reviewed and approved by the Chief Executive Officer prior to submission to the Chief Financial Officer for payment. Prior to July 2025, written approvals were obtained through either email or initial sign-off on invoices. Completion Date: July 2025 Name of Contact Person: Maureen Thomas Chief Financial Officer 917-405-7185 maureen@frfive.org

View Audit 398055

Finding 1206099 (2023-001)

Material Weakness 2023

Future Ready Five

OH

Material Weakness Reporting Internal Control / Segregation of Duties

Reference Number: 2023-01 Finding Type: Material Weakness in Internal Control Over Financial Reporting Description of Finding: The Organization’s system of internal controls was not sufficiently designed or implemented to ensure that account reconciliations were prepared on an accrual basis and revi...

Reference Number: 2023-01 Finding Type: Material Weakness in Internal Control Over Financial Reporting Description of Finding: The Organization’s system of internal controls was not sufficiently designed or implemented to ensure that account reconciliations were prepared on an accrual basis and reviewed in a timely and accurate manner. As a result, material audit adjustments were proposed and made to correct misstatements in the financial statements prior to issuance. The deficiencies resulted from inadequate formalized close procedures, limited supervisory review during the year-end closing process, and staffing changes within the accounting function. Weaknesses in year-end close procedures increase the risk that material misstatements could occur and not be identified or corrected on a timely basis, resulting in delayed financial reporting and increased audit effort. Statement of Concurrence: Management agrees with the finding. Corrective Action: Future Ready Five (FR5) hired Maureen Thomas, Chief Financial Officer, in September 2024 and since then formal monthly and year-end close procedures in accordance with accrual accounting have been implemented, which include supervisory review to ensure accurate and timely financial reporting. The Finance Committee meets bi-monthly to review the monthly financial statements. Completion Date: January 2025 Name of Contact Person: Maureen Thomas Chief Financial Officer 917-405-7185 maureen@frfive.org

View Audit 398055

Finding 1206065 (2023-005)

Material Weakness 2023

Voices of Tomorrow

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting

Contact Person: Chief Financial Officer Contact Person: Iftin Hagimohamed; Chief Financial Officer Stephanie Sosa: Finance Manager Explanation and specific reasons for disagreement with the audit finding or that corrective action is not required (if applicable): Management concurs with the finding. ...

Contact Person: Chief Financial Officer Contact Person: Iftin Hagimohamed; Chief Financial Officer Stephanie Sosa: Finance Manager Explanation and specific reasons for disagreement with the audit finding or that corrective action is not required (if applicable): Management concurs with the finding. FFATA reporting was not completed for applicable subawards as required under 2 CFR Part 170. Status: Corrective Action Taken Corrective action planned: The revised policy includes tracking of allocation shared cost and perform FFATA review. • Develop and implement a formal FFATA reporting policy. • Confirm FSRS system access and assign reporting responsibility. • Establish a compliance calendar for timely submission. • Complete any outstanding required FFATA filings. • Conduct quarterly review of subawards for FFATA applicability. Anticipated completion date: February 2026

View Audit 397946

Finding 1206064 (2023-004)

Material Weakness 2023

Voices of Tomorrow

WA

Allowable Costs / Cost Principles § 200.438

Contact Person: Iftin Hagimohamed; Chief Financial Officer Stephanie Sosa: Finance Manager Explanation and specific reasons for disagreement with the audit finding or that corrective action is not required (if applicable): Management partially disagrees with the characterization of the finding. The ...

Contact Person: Iftin Hagimohamed; Chief Financial Officer Stephanie Sosa: Finance Manager Explanation and specific reasons for disagreement with the audit finding or that corrective action is not required (if applicable): Management partially disagrees with the characterization of the finding. The Organization had an established cost allocation methodology in place and provided documentation outlining the allocation basis and percentages applied to shared nonpayroll costs. The allocation methodology was reasonable, consistently applied, and based on operational usage. The matter identified during audit testing relates to a difference in interpretation regarding the allocation percentage applied to certain costs. The federal project expected 100% allocation of specific costs directly to the program, whereas the Organization allocated costs proportionally based on a documented cost allocation methodology. The variance was not due to a lack of methodology, but rather a disagreement regarding the appropriate allocation basis under the specific award expectations. While management maintains that the allocation approach was reasonable and consistently applied, we acknowledge the auditor’s interpretation and will revise our documentation and review procedures to ensure alignment with the awarding agency’s expectations going forward. The Organization will accept the adjustment and strengthen formal documentation to eliminate ambiguity in future allocations.Status: Corrective Action Taken Corrective action planned: Management has organized their general ledger to allow for better matching and coding to better identify unallowable costs during the billing process. Additionally, necessary staff were trained on the tracking and approving expenditure on federal cost principles. Reviews will be made on quarterly baises, and all necessary documentation is collected and reviewed. • Develop and formally adopt a written Cost Allocation Plan identifying allocation methodologies. • Implement pre-charge review controls for all federal expenditures. • Establish general ledger coding for unallowable costs. • Provide cost principles training to approving staff. • Conduct periodic allocation consistency reviews. Anticipated completion date: April 2026

View Audit 397946

Finding 1206063 (2023-003)

Material Weakness 2023

Voices of Tomorrow

WA

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Significant Deficiency § 200.318 § 200.326

Contact Person: Iftin Hagimohamed; Chief Financial Officer Stephanie Sosa: Finance Manager Explanation and specific reasons for disagreement with the audit finding or that corrective action is not required (if applicable): Management concurs with the finding. Procurement documentation did not consis...

Contact Person: Iftin Hagimohamed; Chief Financial Officer Stephanie Sosa: Finance Manager Explanation and specific reasons for disagreement with the audit finding or that corrective action is not required (if applicable): Management concurs with the finding. Procurement documentation did not consistently evidence compliance with internal policy and 2 CFR §§200.318–200.326. Status: Corrective Action Taken Corrective action planned: Voices of Tomorrow will implement procurement software to automate workflows and approval processes for procurement purchases. Voices of Tomorrow will • Revise and formalize procurement policy to align fully with Uniform Guidance requirements.Implement a standardized procurement documentation checklist requiring evidence of procurement method, cost/price analysis, and approvals. • Require CFO pre-approval for federally funded procurements above established thresholds. • Conduct staff training on federal procurement standards. • Implement quarterly internal procurement compliance reviews. Anticipated completion date: April 2026: Policy revision and training completed within 60 days; quarterly reviews beginning next fiscal quarter.

View Audit 397946

Finding 1206062 (2023-002)

Material Weakness 2023

Voices of Tomorrow

WA

Subrecipient Monitoring § 200.332

Contact Person: Iftin Hagimohamed; Chief Financial Officer Stephanie Sosa: Finance Manager Corrective Action Plan For the Year Ended 2023 Explanation and specific reasons for disagreement with the audit finding or that corrective action is not required (if applicable): Management concurs with the fi...

Contact Person: Iftin Hagimohamed; Chief Financial Officer Stephanie Sosa: Finance Manager Corrective Action Plan For the Year Ended 2023 Explanation and specific reasons for disagreement with the audit finding or that corrective action is not required (if applicable): Management concurs with the finding. Subaward agreements did not consistently include all required elements under 2 CFR §200.332. Status: Corrective Action Taken Corrective action planned: Management has revised its internal policies and procedures regarding subrecipient monitoring to follow 2 CFR 200.332. Ensure that subward are clearly identified and included in subrecipient agreement. • Develop and adopt a standardized subaward agreement template including Assistance Listing Number, federal award name, award ID, performance period, and required compliance provisions. • Implement a documented subrecipient risk assessment process. • Establish a subrecipient monitoring checklist for invoice review and compliance tracking. • Amend active subaward agreements where required. Anticipated completion date: April 30,2026

View Audit 397946

Finding 1206061 (2023-001)

Material Weakness 2023

Voices of Tomorrow

WA

Allowable Costs / Cost Principles § 200.430

Contact Person: Iftin Hagimohamed; Chief Financial Officer Stephanie Sosa: Finance Manager Explanation and specific reasons for disagreement with the audit finding or that corrective action is not required (if applicable): Management concurs with the finding. Personnel costs were allocated based on ...

Contact Person: Iftin Hagimohamed; Chief Financial Officer Stephanie Sosa: Finance Manager Explanation and specific reasons for disagreement with the audit finding or that corrective action is not required (if applicable): Management concurs with the finding. Personnel costs were allocated based on budget estimates rather than after-the-fact documentation as required under 2 CFR §200.430(i). Status: Corrective Action Taken Corrective action planned: Voices of Tomorrow will strengthen its payroll and time-and-effort documentation practices to comply with 2 CFR 200.430(i). The Organization will implement an after-thefact time and effort reporting process that accurately reflects actual work performed by employees whose compensation is charged to federal programs. Specific actions include: • Implementing standardized time-and-effort certification forms for all staff charged to federal awards • Requiring periodic after-the-fact reviews and supervisory approvals • Updating internal policies to clearly define documentation requirements • Training staff and supervisors on Uniform Guidance time-and-effort standards Anticipated completion date: June, 30 2026

View Audit 397946

Finding 1205935 (2023-002)

Material Weakness 2023

Gascosage Electric Cooperative

MO

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting § 200.303

The Organization concurs with the finding and management will implement procedures to ensure appropriate internal control procedures are in place for reporting. Management will implement additional internal controls to ensure appropriate segregation of duties between report preparation and review.

View Audit 397805

Finding 1205858 (2023-001)

Material Weakness 2023

Reinvestment Fund, Inc.

PA

Subrecipient Monitoring Reporting

Planned Corrective Action: We have a remediation plan in place to ensure that all past grantees over $30,000 are registered on the website. We are currently waiting to receive the correct FAIN numbers from the United States Department of Agriculture (USDA) for all our awards so we can file the repor...

Planned Corrective Action: We have a remediation plan in place to ensure that all past grantees over $30,000 are registered on the website. We are currently waiting to receive the correct FAIN numbers from the United States Department of Agriculture (USDA) for all our awards so we can file the reports correctly. Once this information is received from the USDA we are ready to submit the required reporting. We have begun reporting for the few FAIN numbers we have that seem to be correct. We have also included FFATA registration as a step in our grants compliance process for the creation of all future HFFI grantees to prevent this finding from re-occurring. Completion date: May 2, 2024 Name of Contact Person: Sara Vernon Sterman, Chief Program Officer

View Audit 397603

Finding 1205816 (2023-002)

Material Weakness 2023

City of Bentonville, Arkansas

AR

Eligibility Reporting Internal Control / Segregation of Duties

Contact Name: Patrick Johndrow Contract Phone Number: 479-271-6781 Audit Firm: Forvis Mazars, LLP Audit Period: December 31, 2023 Finding #2023-002 – Statement of Condition: The City did not maintain documentation supporting the underlying information included in its quarterly performance report. Sp...

Contact Name: Patrick Johndrow Contract Phone Number: 479-271-6781 Audit Firm: Forvis Mazars, LLP Audit Period: December 31, 2023 Finding #2023-002 – Statement of Condition: The City did not maintain documentation supporting the underlying information included in its quarterly performance report. Specifically, source records and supporting schedules used to compile reported information were not retained or made available for audit. Response: The Organization concurs with the finding and related adjustments made during the audit. Management will implement additional internal controls related to program reports. The completion date for the above-mentioned corrective action was January 2026.

View Audit 397560

Finding 1205771 (2023-004)

Material Weakness 2023

Midwest Organic Association Inc

WI

Reporting

Agency: U.S. Department of Agriculture Responsible Person, Title: Cori Skolaski, ED Completion date: 2026 Agency Response: Concur Corrective Action Plan: The Association will file reports timely for the year ended December 31, 2025 and any future years.

View Audit 397508

Finding 1205737 (2023-001)

Material Weakness 2023

Davis Citizens Coalition Against Violence

UT

§ 200.302 § 200.403

Corrective Action Plan: Addressing Lack of Controls Due to Staffing Shortages Organization: Safe Harbor Crisis Center Date: December 3, 2025 Audit Finding: 2023-001 Non-Material Non-Compliance – Allowable Costs and Activities Corrective Actions: This plan outlines the steps to address the staffing s...

Corrective Action Plan: Addressing Lack of Controls Due to Staffing Shortages Organization: Safe Harbor Crisis Center Date: December 3, 2025 Audit Finding: 2023-001 Non-Material Non-Compliance – Allowable Costs and Activities Corrective Actions: This plan outlines the steps to address the staffing shortage and implement necessary controls to ensure financial statement accuracy and compliance. Phase 1: Immediate Actions Prioritize Key Hires: The immediate priority is to recruit and hire a Controller with significant non-profit accounting experience. This individual will be crucial in designing and implementing the necessary internal controls. 1. Interim Support (If Needed): While searching for permanent staff, explore options for interim accounting support through a consulting firm or temporary staffing agency specializing in non-profit organizations. This can provide immediate assistance with critical tasks and help bridge the gap until permanent staff are in place and sufficiently trained. 2. Documented Job Descriptions: Develop detailed job descriptions for the Controller, Senior Accountant, and Staff Accountant positions. These descriptions should clearly outline the required qualifications, responsibilities, and reporting lines. Emphasis should be placed on experience with non-profit accounting principles (GAAP), fund accounting, and relevant regulations. 3. Recruitment Strategy: Implement a robust recruitment strategy that includes: ○ Posting job openings on relevant job boards (e.g., Idealist, LinkedIn, specialized non-profit job sites). ○ Networking with professional organizations (e.g., state non-profit associations, accounting professional groups). ○ Partnering with recruitment agencies specializing in non-profit finance. Phase 2: Staffing and Implementation 1. Hire Controller: Complete the recruitment process and hire a qualified Controller with proven non-profit accounting experience. 2. Hire Senior Accountant: Once the Controller is in place, begin the recruitment process for a Senior Accountant to support the Controller and manage day-to-day accounting operations. Experience with fund accounting and grant management is highly desirable. 3. Hire Staff Accountants: Recruit and hire the necessary number of Staff Accountants to handle transaction processing, reconciliations, and other accounting tasks. 4. Control Design and Implementation: The Controller, in collaboration with the Senior Accountant, will be responsible for designing and implementing the necessary internal controls. This includes: ○ Segregation of duties (e.g., authorization, custody, recording). ○ Approval processes for expenditures and journal entries. ○ Regular reconciliations of bank accounts and other key accounts. ○ Documentation of accounting policies and procedures. Phase 3: Review and Monitoring (Ongoing) 1. Training: Provide comprehensive training to all finance staff on non-profit accounting principles, internal controls, and the organization's specific policies and procedures. 2. External Review (Optional): Consider engaging an external accounting firm to review the implemented controls and provide recommendations for improvement. This can provide an independent assessment of the effectiveness of the controls. 3. Regular Monitoring: The Controller will be responsible for regularly monitoring the effectiveness of the internal controls and reporting any deficiencies to the Executive Director and the Board of Directors. 4. Policy Updates: The Controller will ensure that accounting policies and procedures are reviewed and updated regularly to reflect changes in regulations and best practices. Responsible Parties: ● Executive Director (Todd Hixson) : Overall responsibility for implementation of the plan. ● Board of Directors: Oversight and approval of the plan and budget. ● Controller: Responsible for designing, implementing, and monitoring internal controls. Timeline: Phases 1 and 2 were completed as of January 2025. As noted above, phase 3 is an ongoing process. Regular progress updates have been and will continue to be provided to the Executive Director, Finance Steering Committee, and the Board of Directors as appropriate. This Corrective Action Plan demonstrates Safe Harbor Crisis Center’s commitment to addressing the identified control deficiencies and strengthening its financial management practices. By implementing this plan, the agency will be better positioned to ensure financial accountability, transparency, and compliance in service of the mission.

View Audit 397454

Finding 1205675 (2023-005)

Material Weakness 2023

Colorado West, INC and Affiliates

CO

Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles Cash Management § 200.303 § 200.403

CORRECTIVE ACTION PLAN FISCAL YEAR OF FINDING: June 30, 2023 AUDITOR FINDING: 2023-005 According to 2 CFR Part 200.403 factors affecting allowability of costs - costs must meet the following general criteria in order to be allowable under Federal awards: (a) be necessary and reasonable for the perfo...

CORRECTIVE ACTION PLAN FISCAL YEAR OF FINDING: June 30, 2023 AUDITOR FINDING: 2023-005 According to 2 CFR Part 200.403 factors affecting allowability of costs - costs must meet the following general criteria in order to be allowable under Federal awards: (a) be necessary and reasonable for the performance of the Federal award and be allocable thereto under these principles, (b) conform to any limitations or exclusions set forth in these principles or in the Federal award as to types or amount of cost items, (c) be consistent with policies and procedures that apply uniformly to both federally-financed and other activities of the non-Federal entity, (d) be accorded consistent treatment, (e) be determined in accordance with generally accepted accounting principles, (f) to be included as a cost or used to meet cost sharing or matching requirements of any other federally-financed program in either the current or a prior period and (g) be adequately documented. In addition, according to 2 CFR Part 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. The Organization did not maintain documentation to support that costs and reimbursement invoices had been approved in accordance with their internal control design. CLIENT PLANNED ACTION: To address the audit finding, we affirm that all reimbursement invoices and cost-related documentation are submitted to a Director-level staff member for review and approval prior to sending. All approved invoices and associated documentation are now stored in a centralized shared drive and onsite file cabinets accessible to relevant finance staff to ensure consistent retention and accessibility for audit and review purposes. These documents will also be accessible within the accounting information system, when organization switches to Sage, which is accessible to all parties that have approval responsibilities. CLIENT RESPONSIBLE PARTY: Cassie Kenney, Director of Accounting COMPLETION DATE: This process started as of June 30, 2024. Documents will be stored within Sage as soon as the switch to this software is effective (tentative July 1st, 2025).

View Audit 397388

Finding 1205673 (2023-006)

Material Weakness 2023

Colorado West, INC and Affiliates

CO

Procurement, Suspension & Debarment § 200.317 § 200.318 § 200.327

CORRECTIVE ACTION PLAN FISCAL YEAR OF FINDING: June 30, 2023 AUDITOR FINDING: 2023-006 In accordance with 2 CFR Part 200.318 the recipient or subrecipient must maintain and use documented procedures for procurement transactions under a Federal award or subaward, including for acquisition of property...

CORRECTIVE ACTION PLAN FISCAL YEAR OF FINDING: June 30, 2023 AUDITOR FINDING: 2023-006 In accordance with 2 CFR Part 200.318 the recipient or subrecipient must maintain and use documented procedures for procurement transactions under a Federal award or subaward, including for acquisition of property or services. These documented procurement procedures must be consistent with State, local, and tribal laws and regulations and the standards identified in §§ 200.317 through 200.327. The Organization's purchasing policy did not contain elements of federal procurement requirements specified by Uniform Guidance. CLIENT PLANNED ACTION: The Organization will revise the Procurement Policy such that it is consistent with the appropriate regulations and standards and requires documentation of the vendor procurement policy. CLIENT RESPONSIBLE PARTY: Danielle Cordova, Controller COMPLETION DATE: July 1st, 2025

View Audit 397388

Finding 1205258 (2023-005)

Material Weakness 2023

City of Hillsboro

OH

Period of Performance Reporting

Adopt procedures to ensure program expenditures are reported accurately.

View Audit 396968

Finding 1203142 (2023-001)

Material Weakness 2023

METRO SCHOOLS CHARTER SCHOOL NO. 4131

MN

Procurement, Suspension & Debarment Reporting § 200.512

CORRECTIVE ACTION PLAN (CAP): Planned Corrective Action: Management will ensure that a responsible audit firm is engaged and the audit process is monitored to ensure that the audit reporting package is filed in a timely manner. Anticipated Completion Date for CAP: Immediately Responsible Official: A...

CORRECTIVE ACTION PLAN (CAP): Planned Corrective Action: Management will ensure that a responsible audit firm is engaged and the audit process is monitored to ensure that the audit reporting package is filed in a timely manner. Anticipated Completion Date for CAP: Immediately Responsible Official: Ahmed Elmi, Director

View Audit 396360

Finding 1191814 (2023-002)

Material Weakness 2023

County of Shelby, Illinois

IL

Finding 2023-002: Grant Administration Condition: During our current year-end audit procedures, we noted that the County did not have adequate centralized procedures to track, monitor, and aggregate grant activity across grant departments to ensure compliance with grant requirements and to identify ...

Finding 2023-002: Grant Administration Condition: During our current year-end audit procedures, we noted that the County did not have adequate centralized procedures to track, monitor, and aggregate grant activity across grant departments to ensure compliance with grant requirements and to identify when the Single Audit threshold was met. .Plan: The County will designate a central function, such as the Treasurer's Office, to maintain a comprehensive list of all grants awards received by County Departments. Departments will be required to notify the central function upon application for and receipt of grant funding and to provide periodic expenditure and compliance information. Standardized procedures will be implemented to monitor grant activity, track cumulative federal expenditures, and assess Single Audit applicability. Anticipated Date of Completion: Audit for Fiscal Year Ended November 30, 2024 Name of Contact Person: Erica Firnhaber, County Treasurer ', l Management Response: Management acknowledges this finding and will work to correct it by the anticipated date identified above.

View Audit 395638

Finding 1191813 (2023-001)

Material Weakness 2023

County of Shelby, Illinois

IL

Finding 2023-001: Material Restatement to Fund Balance/Net Position Condition: During audit fieldwork, our testing resulted in a restatement of fund balance in order to correct a change in the Reporting Entity and split out funds required for separate reporting. Plan: The County Administrator's Offi...

Finding 2023-001: Material Restatement to Fund Balance/Net Position Condition: During audit fieldwork, our testing resulted in a restatement of fund balance in order to correct a change in the Reporting Entity and split out funds required for separate reporting. Plan: The County Administrator's Office and all other offices impacting financial reporting will implement internal controls to properly record necessary funds to be reported at the Entity level. Anticipated Date of Completion: Audit for Fiscal Year Ended November 30, 2024 Name of Contact Person: Erica Firnhaber, County Treasurer Management Response: Manag:3ment acknowledges this finding and will work to correct it by the anticipated date identified above.

View Audit 395638

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