I&F INCORPORATED NFPNon-Profit

Management has implemented a formal compliance calendar that identifies reporting deadlines associated with federal and State grants, including audit submission requirements under Uniform Guidance and GATA. Reporting deadlines and related audit milestones are monitored throughout the year, and management performs periodic reviews to ensure that required financial reports, audit deliverables, and regulatory filings remain on schedule. Delays or missed internal milestones will be identified and addressed promptly to minimize the risk of noncompliance with external reporting deadlines. 21 Integrity & Fidelity NFP. 403 W. Lincoln Highway, Chicago, IL. 60411 integrityandfidelity.org Andre Thomas (773) 756-6806 In addition, management has established earlier internal target dates for year-end closing procedures, financial statement preparation, audit support, and review of audit deliverables to provide adequate time for completion of required regulatory filings before applicable deadlines. Management will continue to monitor audit progress throughout each engagement and maintain ongoing communication with the independent auditors to facilitate timely completion of future audits and regulatory submissions. The corrective actions identified above have been partially implemented, including enhanced monitoring of regulatory reporting requirements and coordination of audit-related deliverables. Full implementation and formalization of the compliance calendar, internal audit completion milestones, and related management review procedures are expected by February 28, 2027. These procedures will remain ongoing components of the Organization's annual financial reporting and regulatory compliance process. Responsible Parties: Susan Manuel, Internal Audit/Accounting, with oversight and final approval by Andre Thomas, Executive Director/CEO. Responsibilities include monitoring applicable federal and State reporting deadlines, coordinating financial information and audit deliverables, monitoring progress against established internal deadlines, and ensuring required reports are submitted to the appropriate regulatory portals within prescribed timeframes. Implementation Status: Partially implemented; full implementation and formalization expected by February 28, 2027

This matter was previously identified through DHS monitoring of the Organization's grant reporting. In response, management implemented a standardized monthly grant reporting process during 2025 that includes internal preparation deadlines established in advance of the grantor's due date, reconciliation of grant expenditures to the accounting records, supervisory review of monthly reimbursement requests, and monitoring of submission deadlines through the Organization's grant compliance process. These procedures provide sufficient time for preparation, reconciliation, supervisory review, resolution of identified discrepancies, and submission of the Periodic Financial Reports within the timeframes established by IDHS. The revised procedures were incorporated into the Organization's standard monthly grant reporting process during 2025 and remain an ongoing component of the Organization's grant compliance and financial reporting procedures. Responsible Parties: CaTrice Monik, Finance Administrator, is responsible for preparation and timely completion of the Periodic Financial Reports; Susan Manuel, Internal Audit/Accounting, is responsible for reconciliation and review of the underlying financial information and monitoring compliance with applicable reporting deadlines; and Andre Thomas, Executive Director/CEO, provides management oversight and final approval, as applicable. Implementation Status: Fully implemented as of December 31, 2025.

Management has implemented procedures requiring executive compensation to be formally authorized by the Board of Directors or its designated representative, documented within the Organization's governance records, and maintained within the Executive Director's personnel file. Supporting documentation will include Board approval of executive compensation, salary authorization, compensation adjustments, employment-related documentation, and any other records necessary to demonstrate proper authorization and compliance with applicable grant and payroll requirements. In addition, executive personnel files will be reviewed annually as part of the year-end financial reporting process to verify that all required payroll and personnel documentation is complete, current, properly authorized, and retained in accordance with the Organization's record retention policies and applicable federal and State grant requirements. The corrective actions identified above have been partially implemented. Full implementation and formalization of the executive compensation documentation and annual personnel file review procedures are expected by December 31, 2026. Following implementation, these procedures will remain ongoing components of the Organization's governance, payroll, and annual financial reporting processes. Responsible Parties: Andre Thomas, Executive Director/CEO; Susan Manuel, Internal Audit/Accounting; and the Board of Directors or its designated representative, as applicable. The Board of Directors or its designated representative is responsible for formal authorization of executive compensation; the Executive Director/CEO is responsible for ensuring that required employmentrelated documentation is maintained; and Internal Audit/Accounting is responsible for verifying that compensation authorization and related supporting documentation are complete and available for financial reporting, grant compliance, and audit purposes. Implementation Status: Partially implemented; full implementation and formalization expected by December 31, 2026.

Management has strengthened its monthly grant reporting procedures by requiring that all shared occupancy costs be calculated using the actual rent and utility expenses incurred for the reporting period in accordance with the Organization's documented cost allocation methodology. Budgeted amounts are not utilized in determining costs charged to federal or State grant programs when actual expenditures are available. Supporting documentation for occupancy costs is reconciled to the general ledger and source documentation before preparation of each grant reimbursement request. In addition, management has implemented a documented supervisory review requiring verification of allocation calculations, supporting schedules, actual source documentation, and applicable cost allocation percentages before expenditures are charged to federal and State grant programs. These procedures have been incorporated into the Organization's standardized monthly financial close process and grant reporting procedures to promote consistent application of federal cost principles, strengthen management oversight, and ensure compliance with 2 CFR Part 200 and applicable grant requirements. The corrective actions identified above were implemented during the fourth quarter of 2025 and incorporated into the Organization's monthly grant reporting procedures. Management continues to monitor the consistent application of these controls as part of its ongoing grant compliance and financial reporting processes. Responsible Parties: CaTrice Monik, Finance Administrator; Susan Manuel, Internal Audit/Accounting; and Andre Thomas, Executive Director/CEO. CaTrice Monik is responsible for preparing grant reimbursement requests using actual recorded occupancy costs and maintaining the related supporting documentation; Susan Manuel is responsible for reconciliation and supervisory review of allocation calculations, supporting schedules, and underlying accounting records; and Andre Thomas provides management oversight and final approval, as applicable. Implementation Status: Fully implemented as of December 31, 2025. The related control procedures remain in effect as part of management's ongoing grant compliance and financial reporting processes.

Management has implemented a standardized monthly grant reconciliation process requiring that all reimbursement requests be fully reconciled to the general ledger, grant cost centers, payroll records, and supporting documentation before submission to the granting agency. Payroll-related expenditures and fringe benefit allocations are now based solely on actual allowable costs incurred and recorded in the general ledger. Budgeted amounts are no longer utilized when calculating reimbursement requests if actual expenditure information is available. As part of the Organization's standardized monthly financial close process, payroll costs, employer payroll taxes, employee benefits, workers' compensation, and other fringe benefit expenditures are reconciled to the general ledger and supporting documentation before reimbursement requests are prepared. Management has also implemented documented supervisory review procedures requiring verification that reimbursement requests reconcile to the accounting records and comply with the Organization's cost allocation methodology and applicable federal grant requirements before submission. Management has completed a review of prior reimbursement reporting, reconciled identified differences to the underlying accounting records, and corrected identified reporting discrepancies. These reconciliation procedures have been incorporated into the Organization's ongoing grant compliance process to strengthen internal controls over federal reimbursement requests and promote continued compliance with 2 CFR Part 200. The corrective actions identified above were substantially implemented during the fourth quarter of 2025 and have been incorporated into the Organization's standardized monthly financial close and grant reimbursement processes. Management continues to monitor the effectiveness and consistent application of these controls, including reconciliation of fringe benefit expenditures to actual costs recorded in the general ledger and documented supervisory review before submission of reimbursement requests. Full formalization and documentation of the enhanced grant reconciliation and compliance procedures are expected by February 28, 2027.

2023-007

FINDING 2023-007: LACK OF INTERNAL CONTROLS OVER COMPLIANCE Corrective Action Plan A compliance management framework will be developed by March 31, 2025, and training for relevant staff will begin shortly thereafter. Monitoring mechanisms and documentation practices will also be implemented to ensure ongoing compliance. Estimated Completion Date: 3/31/2025 Contact Person for Implementation of All Corrective Action Plans: Andre Thomas (Executive Director) (773) 756-6806