Management has strengthened its monthly grant reporting procedures by requiring that all shared occupancy costs be calculated using the actual rent and utility expenses incurred for the reporting period in accordance with the Organization's documented cost allocation methodology. Budgeted amounts are not utilized in determining costs charged to federal or State grant programs when actual expenditures are available. Supporting documentation for occupancy costs is reconciled to the general ledger and source documentation before preparation of each grant reimbursement request. In addition, management has implemented a documented supervisory review requiring verification of allocation calculations, supporting schedules, actual source documentation, and applicable cost allocation percentages before expenditures are charged to federal and State grant programs. These procedures have been incorporated into the Organization's standardized monthly financial close process and grant reporting procedures to promote consistent application of federal cost principles, strengthen management oversight, and ensure compliance with 2 CFR Part 200 and applicable grant requirements. The corrective actions identified above were implemented during the fourth quarter of 2025 and incorporated into the Organization's monthly grant reporting procedures. Management continues to monitor the consistent application of these controls as part of its ongoing grant compliance and financial reporting processes. Responsible Parties: CaTrice Monik, Finance Administrator; Susan Manuel, Internal Audit/Accounting; and Andre Thomas, Executive Director/CEO. CaTrice Monik is responsible for preparing grant reimbursement requests using actual recorded occupancy costs and maintaining the related supporting documentation; Susan Manuel is responsible for reconciliation and supervisory review of allocation calculations, supporting schedules, and underlying accounting records; and Andre Thomas provides management oversight and final approval, as applicable. Implementation Status: Fully implemented as of December 31, 2025. The related control procedures remain in effect as part of management's ongoing grant compliance and financial reporting processes.