Finding Reference Number: 2025-003 Description of Finding: IYT submitted its Audited Financial Statements and Single Audit Report to the Federal Audit Clearinghouse in August 2026, approximately five months after it was due. IYT was required to submit it no later than March 31, 2026; nine months after the June 30, 2025 fiscal year-end, in accordance with 2 CFR 200.512. Federal awarding agencies may deny future federal awards or subject IYT to additional cash monitoring requirements. Statement of Concurrence or Nonconcurrence: We concur with the audit finding. Corrective Action: This finding is a repeat of prior-year finding 2024-004. IYT's prior corrective action committed to on-time submission but did not establish the controls needed to make that commitment hold: it relied on the intent to submit on time rather than on a dated, back-scheduled calendar with an owner for each step and a checkpoint to catch slippage early. When the FY24-25 audit timeline slipped, there was no interim milestone to surface the delay while it could still be recovered, and the report was again submitted late. IYT acknowledges and accepts the responsibility for late submission. Meeting the FAC deadline is IYT's responsibility and remains so even where individual steps sit with the audit firm or with governance. IYT will establish a compliance calendar built by working backward from the Federal Audit Clearinghouse (FAC) statutory deadline, with defined interim milestones and an owner assigned to each by position: engagement of the audit firm and confirmation of fieldwork dates; completion of the year-end close; delivery of the prepared-by-client (PBC) list; fieldwork; draft report; management review; Finance Committee and Board review; and final FAC submission and certification. IYT's timeline depends on inputs from the audit firm (scheduling, fieldwork and reporting turnaround, and draft-review cycles) and from governance (Audit Committee and Board review windows). IYT manages these inputs to the deadline rather than treating them as outside its control: target dates are agreed with the auditors and committee chairs in advance and confirmed in writing, and if any party is at risk of missing a date, IYT escalates and adjusts immediately rather than absorbing the delay. Progress against every milestone is monitored by management and reported to the Audit Committee as a standing agenda item, so slippage is identified and escalated early rather than discovered near the deadline. Name of Contact Person: Macarena O'Brien, Chief Financial & Administrative Officer macarena@improveyourtomorrow.org | (480) 993-4764 Projected Completion Date: March 31, 2027