Management agrees with this finding. Because the Fund operates with a relatively small administrative staff, complete segregation of incompatible duties is not always feasible. Management and those charged with governance recognize this as an inherent limitation of the current organizational structure rather than an intentional departure from sound control practices. To address this limitation, the Fund will strengthen compensating oversight controls. These measures will include increased review of disbursements, bank activity, journal entries, and selected account activity by senior management and periodic reporting to the Board of Directors or its designated governance committee. Existing mitigating controls include management familiarity with operations, review of significant cash disbursements, and governance oversight at regular meetings; however, these controls will be formalized and documented more consistently. Corrective action plan: • Implement a documented monthly review of cash disbursements, bank statements, journal entries, and unusual transactions by the General Manager or equivalent executive not performing day-to-day bookkeeping functions. • Require Board of Directors or finance committee review of summarized financial information, check registers, and budget-to-actual results at regular meetings. • Establish approval thresholds requiring dual review for significant non-routine disbursements, vendor additions, write-offs, and manual journal entries. • Document evidence of supervisory review through sign-off or electronic approval retention. Responsible party/role: General Manager, Business Office Manager, Staff Accountant, and Board of Directors. Implementation timeline: Initial compensating control procedures will be implemented within 90 days of issuance of the audit report, with board-level reporting enhancements in place by June 30, 2026.