TRANSFORM 1012 N MAIN STREET

Finding 2025-001: Reporting – significant deficiency in internal controls over compliance Economic Development Initiative, Community Project Funding and Miscellaneous grants Criteria: The Organization’s control over compliance stipulate that all reports submitted to grantor be approved by management. Condition: During reporting testing for federal grants, prior to submission, 1 of 2 reports submitted did not have documented approval from management. Cause: The Organization’s procedure during the period from January 1, 2025 to October 31, 2025, included a verbal approval of reports and therefore, management approval could not be confirmed or reperformed. Effect: The Organization’s bi-annual reporting is not fully documented in accordance with internal control procedures over compliance. Repeat Finding: This finding is a repeat of finding 2024-002. Management implemented corrective actions during the current year and the number of exceptions decreased from the prior year. However, the controls have not yet operated effectively for a sufficient period to eliminate the deficiency. Questioned Costs: None Recommendation: Management should ensure documentation of management approval of all reports are kept on file. Management’s Response: See corrective action plan.

Finding 2024-002: Reporting – significant deficiency in internal controls over compliance Economic Development Initiative, Community Project Funding and Miscellaneous grants Criteria: The Organization’s control over compliance stipulate that all reports submitted to grantor be approved by management. Condition: During reporting testing for federal grants prior to submission 2 of 2 reports submitted did not have documented approval from management. Cause: The Organization’s procedure included a verbal approval of reports and therefore, management approval could not be confirmed or reperformed. Effect: The Organization’s bi-annual reporting is not fully documented in accordance with internal control procedures over compliance. Questioned Costs: None Recommendation: Management should ensure documentation of management approval of all reports are kept on file. Management’s Response: See corrective action plan.