Finding Number 2021-001: Material Adjustments to Financial Statements, July 1, 2020 through June 30,2021. Statement of Condition: PCOA made adjustments to the financial statements that resulted in material changes to the reported financial position. PCOA personnel responsible for enacting corrective action plan: Jay Huffstutler, Finance Director, jhuffstutler@pcoa.org The corrective action plan: 1. PCOA acknowledges the material adjustments identified and has retained a third-party accounting firm to remediate the deficiencies. A formal month-end closing schedule has been implemented to ensure timely reconciliations and accurate financial reporting. All balance sheet accounts, including receivables, fixed assets, intercompany balances, and accruals, are now reconciled monthly. 2. PCOA has implemented new billing procedures to ensure revenue and related expenses are recorded in accordance with the matching principle and GAAP. These procedures were developed with support from the third-party accounting firm to ensure grant-related transactions are accurately recorded within the proper accounting period. 3. A new Finance Director has been hired to oversee the finance team and began their tenure on July 21,2025. Additional staff with strong technical accounting skills are being recruited, at the recommendation and direction of the third-party firm, to stabilize operations and maintain GAAP compliance. 4. A memo was drafted and sent out to PCOA staff, notifying the team of the change in procedures, in addition to an explanation of the impact of accrual accounting and GAAP compliance. Completion Date: June 30, 2025