Action Taken: Management acknowledges the findings and the significant deficiency in internal control. We accept responsibility for the deficiencies in internal control over payroll reporting and are committed to implementing corrective actions as follows to ensure a robust control environment that ensures payroll transactions are verified against authorized documentation. • Comprehensive File Reviews: We have immediately begun reviewing all current employee payroll files to confirm that they are complete. • Verify Documentation: We have immediately begun ensuring each employee file contains proper documentation for initial pay rates, compensation changes, and job descriptions and offer letters, where applicable. The Authority has implemented a checks and balances review process to ensure that time is entered accurately, reviewed and signed on by the employee and the employee's supervisor, and then Authority leadership also conducts a pre-payroll audit. • Internal Controls: The Authority currently uses a third-party, Paycom, to manage its payroll functions and for recordkeeping purposes. Timesheets are entered and approved electronically in the system. Pre-payroll audits are conducted by the CEO and COO, prior to payroll being approved for payment. With the current electronic record keeping system, payroll documents are securely stored, easily searchable, and traceable. • Ongoing Compliance: The HR Directorwill conduct semi-annual internal audits of a sample of employee files to confirm and document ongoing compliance. In addition, staff who input and review payroll will receive ongoing compliance training and file documentation. Name of Responsible Person: Catherine Lamberg, CEO and Jackie Otto COO, and Natalie Hawks. HR Director Projected Completion Date: Some of the corrective activities are underway. We anticipate completing these activities by March 1, 2026.