Management acknowledges the finding and concurs with the recommendation. The Municipality recognizes that certain obligations outstanding at the end of the fiscal year were not liquidated within the required 90-day period established under the terms and conditions of the Child Care and Development Block Grant (CCDBG) Program. The delays resulted from deficiencies in the monitoring process over outstanding obligations and the timely processing of related disbursements. To address this deficiency, the Municipality has strengthened its internal control procedures by implementing a monitoring process to track all outstanding obligations and their applicable liquidation deadlines. The Federal Programs Director, in coordination with the Finance Department and program personnel, will conduct periodic reviews of open obligations to ensure that all expenditures are processed and disbursed within the required period established by the grant agreement and applicable federal requirements. In addition, management will reinforce staff training regarding the period of performance requirements and the importance of timely liquidation of obligations. Management is committed to maintaining compliance with the requirements of the Child Care and Development Block Grant Program, including the provisions of the agreement with ACUDEN, and will continue to strengthen its internal controls to ensure that all future obligations are liquidated within the required 90-day period.