In response to a finding identified in the City of Camden Redevelopment Agency’s Financial Statements and Independent Auditors’ Report for the year ending December 31, 2024 prepared by CRA. The CAP is pending Board approval. Finding Number: 2024-001: Auditing Procedures and Scope Criteria Management is responsible for timely and accurate financial reporting and submission of the audit report to the State of New Jersey and submission of the single audit report and data collection form to the federal audit clearinghouse within nine months of year end as per 2 CFR Part 200.512. Condition Identified: Delays and inaccuracies in reconciliations, adjustments, and year-end close procedures, resulting in the late completion of the annual audit and untimely filing of the single audit data collection form. These issues were compounded by deficiencies in internal controls over financial reporting, including a lack of review for budget to actual reporting—where budget activity was recorded as transactional rather than following a structured budget process—insufficient oversight of the cash to accrual process, inadequate review of general journal adjustments, and weak controls over grant reporting, including incomplete reconciliation of grant expenses to the general ledger. Collectively, these deficiencies increase the risk of material misstatements, non-compliance with grantor requirements, and limit management’s ability to make informed financial decisions. Corrective Action Plan • Implementation of a Year-End Close Calendar: Develop and adopt a comprehensive year-end close calendar with specific deadlines and responsibilities for each required task, including reconciliations, adjustments, and audit preparation. This calendar will be communicated to all relevant personnel at least 60 days before fiscal year-end. • Monthly Reconciliation Schedule: Enforce a standardized monthly reconciliation process for all key accounts (e.g., cash, receivables, payables, grants), to ensure that year-end tasks do not accumulate and can be completed efficiently and accurately. • Staff Training and Cross-Training: Provide targeted training for accounting and finance staff on proper reconciliation techniques, closing procedures, and audit requirements. Cross-training will also be provided to ensure continuity and reduce reliance on single individuals. • Audit Preparation Checklist: Create and utilize an internal audit prep checklist that is reviewed quarterly and finalized before year-end. This will ensure all necessary reports, schedules, and documentation are prepared well in advance of the auditor’s arrival. • Automation and Software Improvements: Evaluate and implement improvements in accounting software or systems to automate reconciliation reports and reduce the risk of manual errors. Posting of activity on an accrual basis at time of transaction with necessary adjustments for required cash postings resulting from accounting system adjusted to accrual basis and the entries reviewed and approved timely by finance staff segregated from the entry preparer. • Ongoing Monitoring: The Finance Director will perform monthly reviews of account reconciliations and tie out to monthly and quarterly grant reporting to assess timeliness and accuracy. Issues will be flagged early for resolution. • Consult with finance software provider to better utilize the module or switch to new software platform. • A Senior Accountant was hired in April of 2025. • While completing the 2024 audit, we have updated protocols to year end procedures as well as standard operating procedures. Responsible Person(s): Executive Director, Finance Director, and Senior Accountant Anticipated Completion Date: All corrective measures not already in progress will be implemented in February 2026 in preparation for the 2025 year-end close procedures and 2026 daily transaction activity.