Bear Paw Cooperative federal ID 81-0445802 <PO <Box 1449 - 421 Ohio Street - Chinook, Montana 59523 - 406/357-2269 - 'Fax: 406/357-2517 August 19, 2026 RE: Response to FY2024 Audit Finding View of Responsible Officials: The Cooperative acknowledges the audit finding related to the late completion and submission of its audit and recognizes the importance of maintaining compliance with all applicable audit requirements and deadlines. The delays that resulted in the finding were initially attributable, in significant part, to the lack of available staffing and resulting delays within the Cooperative's previous auditing firm that delayed the completion of the FY2022 audit and subsequent audits thereafter. Despite efforts to obtain the required audit work in a timely manner, the circumstances resulted in the audit falling outside of the required timefran1e. The Cooperative has taken corrective action to address the underlying issue and has worked diligently with a new auditing firm to bring the Cooperative's audits current and back into compliance. Through this effort, the Cooperative successfully completed its FY2023 audit in April 2026 and is now completing the FY2024 audit. The Cooperative has maintained ongoing communication and coordination with the new auditing firm throughout this process to ensure that outstanding audit requirements are addressed and that future audits are completed within the required statutory and regulatory timeframes. The Cooperative appreciates the opportunity to address this finding and remains committed to full compliance and continuous improvement in its financial oversight and reporting practices. Sara G. Tempel, Director Bear Paw Cooperative PO BOX 144 August 19th, 2026 RE: 2024-002 Cash Overdraft View of Responsible Officials: This letter is in response to the finding regarding overdrawn cash accounts. We are implementing corrective actions to ensure compliance moving forward. Bear Paw Cooperative agrees with the audit finding and recommendation. The negative cash balance in the Miscellaneous Programs Fund (315) was primarily the result of timing differences between expenditures incurred during fiscal year 2024 and the receipt of IDEA grant reimbursements. The Cooperative had incurred allowable grant expenditures but had not yet received all related grant disbursements as of June 30, 2024. The negative cash balance in the lnterlocal Agreement Fund (382) resulted from expenditures exceeding the fund's available revenues and other financing sources during the fiscal year. Bear Paw Cooperative recognizes the importance of maintaining adequate cash balances within each fund and complying with GASB requirements and applicable Montana statutes. Going forward, the Cooperative will strengthen its monitoring of fund cash balances, particularly as year-end approaches. Bear Paw Cooperative will also work to ensure that expenditures are not incurred in excess of available resources for funds subject to applicable expenditure limitations. These procedures are intended to improve cash-flow monitoring, ensure appropriate financial reporting, and prevent negative fund cash balances in future fiscal years Sincerely, Amanda Miller District Clerk Bear Paw Cooperative/Chinook Public Schools PO BOX 14-4 X: 406-357-2517 August 19th 2026 RE: Miscellaneous Fund Tracking and Accounting View of Responsible Officials: Bear Paw Cooperative agrees with the finding and recommendation. Bear Paw Cooperative has implemented procedures to improve the monitoring of cash and program balances. The Cooperative will perform monthly reconciliations of the grant/project balances to the County Treasurer's cash balance and will review cash balances by fund and project reporter code (PRC) throughout the year. These reconciliations will assist management in identifying potential cash shortfalls and discrepancies in program balances before year-end. We believe these procedures will provide better oversight of individual program cash balances, improve the accuracy of financial reporting, and reduce the likelihood of negative cash balances at year-end. Sincerely, Amanda Miller District Clerk Bear Paw Cooperative/Chinook Public Schools BEAR PAW COOPERATIVE PO BOX 1449 . CHINOOK, MT 59523 . 406-357-2269 . FAX: 406-357-2517 August 31st 2026 RE: Auditee Response – 2024-004 Proper Uses of Revenue and Funds Bear Paw Cooperative agrees with the audit finding and recognizes the importance of ensuring that revenues and expenditures are recorded in the appropriate fund and that each fund is used only for its designated purpose. The $13,502 identified in the audit resulted from revenue being coded to the Retirement Fund rather than the Interlocal Agreement Fund. This resulted in the Retirement Fund cash and revenue being overstated and the Interlocal Agreement Fund cash and revenue being understated. Management acknowledges that the error was a result of incorrect fund coding when the revenue was recorded. To prevent similar errors in the future, the Cooperative will implement the following procedures: • Revenue receipts will be reviewed at the time of entry to verify that the revenue is being recorded in the appropriate fund and account. • Supporting documentation will be reviewed to determine the designated purpose of each revenue source before the transaction is posted. • Fund coding will be reviewed periodically to identify and correct any transactions that may have been recorded in an incorrect fund. Bear Paw Cooperative will continue to monitor fund activity and ensure that revenues and resources are maintained separately and used for their intended purposes in accordance with applicable GASB requirements and the School Accounting Manual. Sincerely, Amanda Miller District Clerk Bear Paw Cooperative/Chinook Public Schools