Management acknowledges the Finding regarding cash management compliance over federal awards. Background - In the first quarter of 2025, the Organization drew down funds through ASAP across several federal grants to prevent interruptions to ongoing grant activities and services for program beneficiaries. Based on the Organization’s review of drawdown requests associated with the federal awards included in the auditors’ testing, the total value of the affected transactions was $1,249,320 for the year ended December 31, 2025. Each of the grants operates differently, with its own period of performance and spending pattern, and for several grants the awarding agency subsequently approved no-cost extensions to allow additional time for grant work, which resulted in cash on hand that exceeded immediate cash needs. Status of the Funds - The Organization classified the funds as refundable advances (liabilities) on its Statement of Financial Position, reduced the liabilities, and recognized revenue as it incurred allowable expenditures. It did not draw additional funds from ASAP until the cash on hand for each respective grant was fully disbursed. Of the $1,249,320 in affected transactions, $628,754 (~50%) has been expended as of September 25, 2026. Spending on certain grants was slower than anticipated due to third party staffing and subrecipient onboarding timelines. The Organization confirms that all funds remain restricted for allowable purposes under the awards from which they were drawn. In response to the recommendation to review interest earned on federal cash balances and remit any amounts due, the total interest earned on the Organization’s operating account during the fiscal year was $201.24. Because the account contained both federal and non-federal funds, interest was not separately accumulated by funding sources. Based on the total interest earned for the year, Management does not believe the amount attributable to federal funds exceeded the $500 annual threshold permitted to be retained for administrative expenses under the Uniform Guidance. Going forward, the Organization will add an annual review of interest earned on accounts with federal funds (see Corrective Action Plan). The control listed below was in place before and during 2025. To address the timing identified in this Finding, Management reaffirms this control and adds the following new actions. Controls Already in Place • Reconcile cumulative drawdowns to actual expenditures and federal cash on hand for each grant award monthly. New Actions • Formalize the Organization’s existing monitoring of the elapsed time between the receipt of drawn federal funds and disbursement to vendors by establishing a 30- day internal benchmark for each grant award and reviewing any advances outstanding beyond that period. The Uniform Guidance does not specify an exact number of days; the 30-day benchmark reflects management’s internal target and is consistent with the auditors’ observation. • Review interest earned on accounts holding federal funds and remit any amount above the allowable threshold on an annual basis. These measures are intended to ensure that future drawdowns closely match immediate cash needs and are disbursed within a reasonable period, that interest on federal cash balances is properly evaluated, and that the Organization remains compliant with federal cash management requirements. Planned Implementation Date of Corrective Action Plan Existing controls remain in place. The formalized 30-day monitoring benchmark described above began in October 2026 and will continue on an ongoing basis. The annual interest review will begin with the fiscal year 2026 year-end review and continue annually thereafter.