CORRECTIVE ACTION PLAN
March 31, 2025
EO Companies respectfully submits the following corrective action plan for the year ended June 30, 2024.
Name and address of independent public accounting firm:
Brown, Edwards & Company, L.L.P. 636 Shelby Street, Suite 400
Bristol, TN 37620
Audit period: June 30, 2024
The findings from the June 30, 2024 Schedule of Findings and Questioned Costs (the "Schedule") are discussed below. The findings are numbered consistently with the number assigned in the Schedule.
FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAM AUDIT
2024-001: Coronavirus State and Local Fiscal Recovery Fund-AL #21.027, Uniform Guidance Procurement Documentation
Condition:
The Organization does not have written procurement policies that fully align with requirements in the Uniform Guidance.
Criteria:
In December 2018, the sections of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) covering procurement became effective after a three-year grace period on the implementation date. The Uniform Guidance requires
entities to have written policies and procedures in place covering most types of procurement, as well as related matters such as conflicts of interest, avoidance of geographical preferences, bidding thresholds, required contract language, and others.
Cause:
The Organization is new to this type of funding and, while having various components of policies in place, has not yet adopted a complete policy.
Effect:
Procurement procedures may not be conducted in accordance with Uniform Guidance requirements.
Questioned Costs:
NIA
Repeat Finding:
No.
Recommendation:
The Organization should revise procurement procedures to more closely align with Uniform Guidance requirements.
Corrective Action:
EO Companies will review and write a more detailed version of procurement policies to ensure complete and continuous compliance with the requirements in the Uniform Guidance.
If the Federal Audit Clearinghouse has questions regarding this plan, please call Mark Seamon, VP of Finance, at (276) 525-0122.
Mark Seamon VP of Finance