The corrective action plan for the internal control material weakness, noncompliance with Uniform Audit Guidance Subpart E-Cost Principles (2025-002), is summarized as follows: Corrective Action Planned: Management respectfully disagrees with the finding that indirect costs were double charged. The Organization uses the Direct Allocation Method described in Appendix IV to 2 CPR Part 200. Under this method, joint costs are allocated directly to benefiting programs and activities using allocation bases designed to reflect the relative benefits received. General administrative and general expenses are treated as indirect costs. The Organization also elected to use the de minimis indirect cost rate permitted by 2 CPR§ 200.414(f). Management believes the costs allocated directly to the federal award and the costs recovered through application of the de minimis rate represent separate cost categories and that no individual cost was charged to the award both directly and indirectly. Management's allocation methodology and resulting charges were also reviewed and approved by the grantor, and management relied on that approval in determining that its treatment was acceptable. Although management disagrees with the finding, the Organization will review and enhance its written cost-allocation procedures to more clearly identify: • Costs charged directly to each federal award; • Joint costs allocated under the Direct Allocation Method; • General administrative costs treated as indirect costs; and • Controls designed to ensure that costs charged directly are not also recovered through another allocation or reimbursement method. Management will also retain documentation supporting the allocation bases used, the calculation and application of the de minimis rate, and relevant grantor approvals and communications. Anticipated Completion Date: Responsible: Management and Board of Directors.