Cedar Valley Services, Inc. respectfully submits the following corrective action plan for the year ended December 31, 2022. Audit period: January 1, 2022 ? December 30, 2022 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS?FINANCIAL STATEMENT AUDIT MATERIAL WEAKNESS 2022-001 Financial Statement Preparation. Recommendation: The Organization should evaluate their financial reporting processes and controls, including the expertise of its internal staff, to determine whether additional controls over the preparation of annual financial statements can be implemented to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization?s management is aware of the limitations and risks as currently structured. As the Organization grows and additional employees are hired, management will again look for ways to add more layers of oversight. Names of the contact persons responsible for corrective action: Rich Pavek, Executive Director, and Kris Burkey, Finance Manager Planned completion date for corrective action plan: Ongoing 2022-002 Material Audit Adjustments. Recommendation: We recommend the Organization continue to work with auditors to identify year-end adjustments that are necessary to ensure the accounts are adjusted to their appropriate year-end balances in accordance with GAAP. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization will continue to work on implementing a reconciliation and review process to ensure accounts are adjusted to their appropriate year-end balances in accordance with GAAP. Names of the contact persons responsible for corrective action: Rich Pavek, Executive Director, and Kris Burkey, Finance Manager Planned completion date for corrective action plan: Ongoing FINDINGS?FEDERAL AWARD PROGRAMS AUDITS U.S. Department of Transportation 2022-003 Formula Grants for Rural Areas ? Assistance Listing No. 20.509C Recommendation: We recommend the Organization review its policy and determine if there needs to be an amendment to its policy, or the calculations need to be updated to reflect the approved policy. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization will take the steps necessary to either modify its cost allocation plan and seek approval of the plan, or modify its monthly calculation to properly reflect the approved plan. Names of the contact persons responsible for corrective action: Rich Pavek, Executive Director, and Kris Burkey, Finance Manager Planned completion date for corrective action plan: December 31, 2023 If the there are any questions regarding this plan, please call Rich Pavek at 507-433-2303.