The Administration of HONOR acknowledges the condition identified in the 2025 Financial Audit concerning the lack of allocation documentation. The following response outlines the steps the HONOR Administration, and Management will take to address these issues and prevent recurrence. During the 2025 audit process, RBT identified the following condition: “Allocation of allowable costs were not properly documented.” HONOR Chief Financial Officer, along with the Finance Director, reviewed the condition and implemented the following corrective measure: -Ensure source documents are documented with G/L code, cost center and allocation method, if one is used. Documentation will be reviewed for completeness by the Staff Accountant. This will add an additional layer of documentation review prior to month end close. HONOR’s Chief Financial Officer along with the finance team take this audit finding seriously and are committed to strengthening internal controls to prevent future incidents. The steps outlined above will help us maintain compliance and ensure the proper use of resources. HONOR thanks RBT for their due diligence in bringing this matter to our attention.