Corrective Action Plan The City of Buena Vista, Virginia respectfully submits the following corrective action plan for the year ended June 30, 2022. Name and address of independent public accounting firm: Robinson, Farmer, Cox Associates 10 Hedgerow Drive Staunton, VA 24401 Audit Period: July 1, 2021 to June 30, 2022 The findings from the June 30, 2022 schedule of findings and questioned costs is discussed below. The findings are numbered consistently with the number assigned in the schedule. Financial Statement Findings 2022-001 Material Weakness Responsible Person, Title: Jason Tyree, City Manager; Charles Clemmer, Finance Director Audit Finding: The City's financial statements required several material adjusting entries by the Auditor to ensure such statements complied with Generally Accepted Accounting Principles. Auditor Recommendation: Management should review the current year adjusting entries and consider whether or not they apply during the next fiscal year. Anticipated Completion Date: 02-15-2023 City's Response: Concur Corrective Action Planned: Management will review current year adjusting entries and determine whether or not they apply during the next fiscal year. In addition, management will closely review financial statements so material adjusting entries by Auditor will not be necessary. Federal Award Findings and Questioned Costs 2022-002 Material Weakness and Compliance Finding Responsible Person, Title: Dr. Francis, Superintendent; Denise Fitzgerald, Grant Coordinator; Sandra Mohler, Finance Audit Finding: During a test of disbursements, we observed that an invoice was submitted for reimbursement to Virginia Department of Education under the Education Stabilization Fund (ESSER) as well as under the Coronavirus Tate and Local Fiscal Recovery Funds to Support HVAC Replacement. Under the terms of the Coronavirus State and Local Fiscal Recovery Funds to Support HVAC Replacement, there is a 100% local match required, which could be funded with ESSER funding. The School Board's total HVAC project was $224,856 and the School Board received reimbursement in the amount of $424,856 ($224,856 under ESSER and $200,000 under ARPA HVAC). Auditor Recommendation: The School Board should thoroughly review the terms and conditions of federal awards before submitting reimbursement to ensure compliance with federal programs. Anticipated Completion Date: 02-15-2023 City's Response: Concur Corrective Action Planned: Amendments were completed in a timely manner with the advice and guidance from VDOE Directors- Lynn Sodat and Susan Dandridge. These amendments reflect the necessary changes for the BVCPS to be in compliance with both grants. Both have received final approval from VDOE. Moving Forward BVCPS will continue to review on an ongoing basis of all approved expenditures by Denise Fitzgerald and Sandra Mohler in order to maintain proper financial records for future audits and accountability to the VDOE guidelines. This information will be shared monthly with our Core Committee, which consists of the following SBO personnel: Dr. Miller, Dr. Francis, Denise Fitzgerald, Juli Gibson, Robin Williams, Sherrie Wheeler and Sandra Mohler. Any questions regarding this corrective action plan can be addressed by Charles Clemmer, City Finance Director at 540-261-8602.