Corrective Action: Management will implement the following: • The Board of Directors will formally adopt a written Cost Allocation Plan assigning every shared cost to a defined cost pool with a stated allocation base: fringe benefits allocated on direct salaries; occupancy (by site) on measured square footage; food service on meals served; information technology on user and device counts; and administrative costs on modified total direct costs. • The square footage of the Warren Avenue and Midway facilities will be measured and documented as the basis for the occupancy allocation. • Class and location tracking will be enabled in the accounting system, and payroll department codes will be assigned to every earnings line so that salaries are charged directly to the benefiting program at each payroll rather than reallocated after the fact. • Employees whose time benefits more than one federal award will complete after-the-fact time and effort certifications, signed by the employee and supervisor and reconciled to payroll at least quarterly, in accordance with 2 CFR 200.430(i). • Allocations of pooled costs will be recorded monthly through dedicated allocation accounts that must net to zero, with the monthly allocation schedule retained as the contemporaneous supporting workpaper. • Unallowable costs, including interest, penalties, lobbying, entertainment, and bad debt, will be segregated in dedicated accounts excluded from all allocation bases. • Management will review the allocation results quarterly for reasonableness and consistency; the review will be documented and signed by the Executive Director. Responsible Officials: Dr. Leah Skinner, Executive Director, with day-to-day administration by the Finance Manager and the Organization's outside accountants. Anticipated Completion Date: Board adoption of the Cost Allocation Plan and facility measurements by October 31, 2026; class and payroll coding effective with the October 2026 accounting close; the first monthly allocation entries and retained schedules for November 2026; time and effort certifications beginning with the quarter ending December 31, 2026.