Audit 400886

Reference Number: 2025-002 Prior Year Finding: No Federal Agency: U.S. Department of Agriculture State Agency: Department of Elementary and Secondary Education Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.555, 10.582 Award Number and Year: 254MA303N1099 (10/1/2024-9/30/2025) 254MA303N1199 (10/1/2024-9/30/2025) 254MA300L1603 (10/1/2024-9/30/2025) Compliance Requirement: Reporting – Federal Funding Accountability and Transparency Act (FFATA) Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance Criteria or specific requirement: Compliance: Per the Federal Funding Accountability and Transparency Act (FFATA), prime (direct) recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Reports must be filed in FSRS by the end of the month following the month in which the prime recipient awards any sub-grant greater than or equal to $30,000. If the initial award is below $30,000 but subsequent grant modifications result in a total award equal to or over $30,000, the award will be subject to the reporting requirements as of the date the award exceeds $30,000. If the initial award equals or exceeds $30,000 but funding is subsequently de-obligated such that the total award amount falls below $30,000, the award continues to be subject to FFATA reporting requirements. On March 8, 2025, FSRS.gov was retired, and all subaward reporting data and functionality transitioned to SAM.gov after that date. The following key data elements must be reported: Subawardee Name and Data Universal Numbering System (DUNS) number; Amount of Subaward (inclusive of modifications); Subaward Obligation/Action Date; Date of Report Submission; Subaward Number; Project Description; and Names and Compensation of Highly Compensated Officers. (Names and Compensation of Highly Compensated Officers must only be reported when the entity in the preceding fiscal year received 80 percent or more of its annual gross revenues in Federal awards; and $25,000,000 or more in annual gross revenues from Federal awards; and the public does not have access to this information about the compensation of the senior executives of the entity through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. §§ 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986.) Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Department of Elementary and Secondary Education (Department) did not report subaward information in SAM.gov. Context: Twelve of forty subawards selected for testing were not reported in SAM.gov. The Department did not complete any FFATA reporting after FSRS reporting transitioned to SAM.gov in March 2025 resulting in subaward reporting not being completed for subawards issued after February 2025. SEE SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR CHART/TABLE Cause: The Department did not update its procedures and controls regarding subaward reporting after FSRS reporting transitioned to SAM.gov in March 2025. Effect: Subawards were not reported to FSRS. Questioned costs: None noted. Recommendation: We recommend the Department develop procedures and internal controls to ensure that all required subawards are reported timely and accurately to SAM.gov no later than the end of the month following the month of issuance of each subaward. If the Department is unable to complete reporting in SAM.gov, it should follow up with the Service Desk and consult with their federal award contacts for assistance and guidance. Views of responsible officials: There is no disagreement with the finding.

Reference Number: 2025-003 Prior Year Finding: 2024-007 Federal Agency: U.S. Department of Labor State Agency: Executive Office of Labor and Workforce Development Federal Program: Employment Service Cluster Assistance Listing Number: 17.207, 17.801 Award Number and Year: 24A55WP000063 (7/1/2024 – 9/30/2027), 23555DV000008 (10/1/2022 – 12/31/2024), 23555DV000005 (7/1/2023 - 9/30/2026) Compliance Requirement: Reporting – Federal Funding Accountability and Transparency Act (FFATA) Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance Criteria or specific requirement: Compliance: Per the Federal Funding Accountability and Transparency Act (FFATA), prime (direct) recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Reports must be filed in FSRS by the end of the month following the month in which the prime recipient awards any sub-grant greater than or equal to $30,000. If the initial award is below $30,000 but subsequent grant modifications result in a total award equal to or over $30,000, the award will be subject to the reporting requirements as of the date the award exceeds $30,000. If the initial award equals or exceeds $30,000 but funding is subsequently de-obligated such that the total award amount falls below $30,000, the award continues to be subject to FFATA reporting requirements. On March 8, 2025, FSRS.gov was retired, and all subaward reporting data and functionality transitioned to SAM.gov after that date. The following key data elements must be reported: Subawardee Name and Data Universal Numbering System (DUNS) number; Amount of Subaward (inclusive of modifications); Subaward Obligation/Action Date; Date of Report Submission; Subaward Number; Project Description; and Names and Compensation of Highly Compensated Officers. (Names and Compensation of Highly Compensated Officers must only be reported when the entity in the preceding fiscal year received 80 percent or more of its annual gross revenues in Federal awards; and $25,000,000 or more in annual gross revenues from Federal awards; and the public does not have access to this information about the compensation of the senior executives of the entity through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. §§ 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986.) Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Executive Office of Labor and Workforce Development (Department) did not report subaward information in accordance with FFATA requirements. Context: Nine of nine subawards selected for testing were not reported in accordance with FFATA reporting requirements. Specifically, we noted the following: • 6 of 9 subawards were not reported within the required timeframe. These subawards were not reported until after they were selected for testing by the auditors. Two subawards were due to be reported by 11/30/2024 and four subawards were due to be reported by 2/28/2025. These subawards were reported on 11/21/2025, which was subsequent to when the requests to review the reports were made by the auditors. • 3 of 9 subaward modifications were not reported. These modifications included two increases to the original subaward of less than $30,000 and one decrease to the original subaward of less than $30,000. The original subawards were greater than $30,000 requiring any modifications to the subaward, regardless of the dollar value, to be reported. SEE SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR CHART/TABLE Cause: The Department’s procedures and controls were not sufficient to ensure that subawards were reported timely nor that subaward modifications less than $30,000 were reported. Effect: The Department omitted subaward amendments from FFATA reporting and did not report other subawards until after they were selected by auditors for testing. Auditors note that the Department’s corrective action plan from the prior audit had not yet been fully implemented in FY 2025. Questioned costs: None. Recommendation: We recommend the Department complete implementation of its corrective action plan from the prior year. The Department should implement procedures and internal controls to ensure that all required subawards and subaward modifications are reported no later than the end of the month following the month of issuance. Views of responsible officials: There is no disagreement with the finding.

Reference Number: 2025-004 Prior Year Finding: 2024-009 Federal Agency: U.S. Department of Labor State Agency: Executive Office of Labor and Workforce Development Federal Program: Employment Service Cluster Assistance Listing Number: 17.207, 17.801 Award Number and Year: 2355DV000008-01-00 (10/1/2022 – 12/31/2024) 24555DV000087 (10/1/2023 – 12/31/2025) 25555DV000114 (10/1/2024 – 9/30/2025) Compliance Requirement: Reporting – VETS-402(A/B) Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance Criteria or specific requirement: Compliance: VETS-402 (A/B), Expenditure Detail Report – This expenditure and staff utilization report separately identifies Jobs for Veterans State Grant-expenditures each quarter and year-to-date as a supplement to the DVOP and LVER SF 425, Federal Financial Reports. Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: Reports submitted by the Executive Office of Labor and Workforce Development (the Department) did not agree with supporting documentation. Context: Five of five reports selected for testing did not agree with supporting documentation. Numerous variances were noted in multiple sections of the reports filed for the 12/31/2024 and 3/31/2025 quarters. • For the 12/31/2024 reports, variances were noted in the following line items: o Section B: Allocations by Activity specific to Local Veterans Employment Representatives and Management and Administrative Costs o Section C: Outlays and Obligations by Activity specific to Line C.1 Disabled Veterans Outreach Program (DVOP) for funded DVOP positions, DVOP salaries paid, total DVOP outlays, and DVOP unliquidated obligations, Line C.3 Local Veterans Employment Representatives (LVER) for funded LVER positions, LVER salaries paid, LVER benefits paid, and total LVER outlay and Line C.5 Management and Administrative Costs for management and administrative outlays and management and administrative unliquidated obligations. • For the 3/31/2025 reports, variances were noted in the following line items: o Section C: Outlays and Obligations by Activity specific to Line C.1 Disabled Veterans Outreach Program (DVOP) for funded DVOP positions, DVOP unliquidated obligations and Line C.3 Local Veterans Employment Representatives (LVER) for LVER salaries paid, LVER benefits paid, and total LVER outlay line items. Cause: The Department’s procedures were not sufficient to ensure that reports agreed with supporting documentation. Internal controls did not prevent or detect the errors. Auditors noted that the Department has not completed implementation of their corrective action plan from the prior year. Effect: Numerous line items in quarterly reports tested did not agree with supporting documentation. Questioned costs: Undetermined. Recommendation: We recommend the Department complete implementation of its corrective action plan from the prior year. Procedures and internal controls over reporting should be sufficient to ensure that reports are accurate and agree with supporting documentation. Views of responsible officials: There is no disagreement with the finding.

Reference Number: 2025-005 Prior Year Finding: No Federal Agency: U.S. Department of Labor State Agency: Executive Office of Labor and Workforce Development Federal Program: Employment Service Cluster Assistance Listing Number: 17.207, 17.801 Award Number and Year: 23A55WP000005 (7/1/2023 – 9/30/2026) 24A55WP000063 (7/1/2024 – 9/30/2027) Compliance Requirement: Allowable Costs/Cost Principles – Time and Effort Reporting Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or specific requirement: Compliance: Per 2 CFR § 200.430 (a), costs of compensation are allowable to the extent that they satisfy the specific requirements of this part, and that the total compensation for individual employees: (1) Is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity consistently applied to both Federal and non-Federal activities; (2) Follows an appointment made in accordance with a non-Federal entity's laws or rules or written policies and meets the requirements of Federal statute, where applicable; and (3) Is determined and supported as provided in paragraph (i) of this section, Standards for Documentation of Personnel Expenses, when applicable. Per 2 CFR § 200.430 (i), charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: • Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated, • Be incorporated into the official records of the non-Federal entity, • Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities, • Encompass both federally assisted, and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity's written policy, • Comply with the established accounting policies and practices of the non-Federal entity, • Support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Executive Office of Labor and Workforce Development (the Department) charged budgeted personnel costs to the program instead of actual costs due to errors coding employee timesheets. Context: Four of forty timesheets selected for testing charged costs to the program based on budgeted rates instead of actual time worked per employee timesheets. Combination codes are used by employees to allocate and certify hours worked to Federal grants and employees’ supervisors are required to perform a line-item review of hours spent on each grant before approving timesheets. If a timesheet is approved without the use of combination codes, the system defaults to budgeted grant allocations entered into the Labor Cost Management (LCM) module of the Massachusetts Management Accounting and Reporting System (MMARS). Specifically, we noted the following: • 2 of 40 employee timesheets selected for testing did not use combination codes and the employees’ time was defaulted to a budgeted grant allocation rather than the employees’ actual time and effort on the program. • 2 of 40 employee timesheets selected for testing had a bilingual differential and were missing combination codes. The payment was not based on the employee’s timesheet but instead was based on a budgeted percentage of time. One employee’s time was overcharged by 25% and the other was overcharged by 40%. Cause: The Department’s controls were not operating effectively to ensure that time and effort reporting was performed in accordance with federal requirements. Effect: Noncompliance occurred as payroll charges allocated to the grants were not reflective of actual activity for which the employees were compensated. Questioned costs: $5,389, the amount overcharged to the program based on budgeted time rather than actual time recorded on employee timesheets. Recommendation: The Department should update its procedures and controls and perform additional training over time and effort reporting to ensure that payroll costs charged to the program are based on actual time and effort and a combination code that is allowable under the program. The Department should not seek federal reimbursement unless it can substantiate that the time and effort was dedicated to the federal program. Views of responsible officials: There is no disagreement with the finding.

Reference Number: 2025-006 Prior Year Finding: No Federal Agency: U.S. Department of Labor State Agency: Executive Office of Labor and Workforce Development Federal Program: Employment Service Cluster Assistance Listing Number: 17.207, 17.801 Award Number and Year: 23A55WP000005 (7/1/2023 – 9/30/2026) Compliance Requirement: Reporting – ETA 9130 – Financial Report Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or specific requirement: Compliance: ETA 9130, Financial Report – All ETA grantees are required to submit quarterly financial reports for each grant award they receive. Reports are required to be prepared using the specific format and instructions for the applicable program(s); in this case, Employment Service and Unemployment Insurance Programs (Employment Service Cluster). Reports are due 45 days after the end of the reporting quarter. Financial data is required to be reported cumulatively from grant inception through the end of each reporting period. Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: ETA 9130 financial reports submitted by the Executive Office of Labor and Workforce Development (Department) did not agree to supporting documentation. Context: One of seven ETA 9130 reports selected for testing did not agree with supporting documentation. Specifically, unliquidated obligations reported for program FES2024 in the 6/30/2024 quarter did not agree to underlying records. Cause: The Department’s procedures were not sufficient to ensure that the ETA 9130 report was accurate and agreed with supporting documentation. Internal controls did not prevent or detect the error. Effect: Incorrect data was reported which could misrepresent the State’s financial performance in the program. Questioned costs: Undetermined. Recommendation: The Department should review its procedures to ensure that ETA 9130 reports are accurate and agree with supporting documentation. We further recommend that internal controls are enhanced to ensure that reports are reviewed for accuracy prior to submission. Views of responsible officials: There is no disagreement with the finding.

Reference Number: 2025-007 Prior Year Finding: No Federal Agency: U.S. Department of Labor State Agency: Executive Office of Labor and Workforce Development Federal Program: Unemployment Insurance Assistance Listing Number: 17.225 Award Number and Year: UI372292255A25 (10/1/2021 – 12/31/2024) UI393282355A25 (10/1/2022 – 12/31/2025) 23A55UI039328 (10/1/2022 – 12/31/2025) 24A55UI00054 (10/1/2023 – 12/31/2026) 25A55UI000099 (10/1/2024 – 12/31/2027) Compliance Requirement: Reporting – ETA 2112, UI Financial Transaction Summary Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance Criteria or specific requirement: Compliance: ETA 2112, UI Financial Transaction Summary (OMB No. 1205-0154) – Per ET Handbook 401, 5th Edition, Form ETA 2112 is a monthly summary of transactions in a state unemployment fund which consists of the Clearing Account, Unemployment Trust Fund (UTF) Account, and Benefit Payment Account. All payments by employers (and employees where applicable) into a state unemployment fund for contributions, payments in lieu of contributions, and special assessments should be accounted for in the report. Penalty and interest should be reported if deposited into the clearing account and transferred to the UTF. Funds received from the Federal Employees Compensation Account (FECA) and the Extended Unemployment Compensation Account (EUCA) as advances or reimbursements for Federal benefit obligations paid through the benefit payment account should be identified and reported in appropriate line items. All funds deposited into, transferred, or paid from the state unemployment fund (the state clearing account, the state account in the UTF, and the state benefit payment account) should be reflected on the ETA 2112 except for payments/benefits paid under the Alternative Trade Adjustment Assistance (ATAA) and Trade Adjustment Assistance (TAA) programs. Form ETA 2112 provides a summary of data pertaining to state unemployment insurance (UI) tax collections, regular benefits paid, Federal and state shares of extended benefits paid, Federal temporary program benefits paid, and other transactions affecting the UTF. In addition, it reflects specific areas where adjustments are indicated to determine the adequacy of resources available for regular unemployment benefit payments. Data from this form are also used with data from other statistical reports to study trends in financial aspects of the UI program and as a basis for solvency studies. This report is due the 1st day of the second month following the month of reference. Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: ETA 2112, UI Financial Transaction Summary reports submitted by the Executive Office of Labor and Workforce Development (Department) did not agree to supporting documentation. Context: Four ETA 2112 reports were selected for testing. For 2 of the 4 reports tested, we noted the following exceptions: • For 1 of the 4 reports tested, the incorrect amount was reported on Line 28 (Other Sources #4) for Item D. Clearing Account. The report was overstated by $56,283. • For 1 of the 4 reports tested, the amounts on Line 11 (Net UI Contributions), Line 19 (Reimb Local Govt/Indian Tribes) and Line 21 (Reimbursement Non-Profit) under Item D. Clearing Account did not agree to supporting documentation. While the total amount agrees overall, each individual line item does not reconcile to the supporting documentation. Questioned costs: Undetermined. Cause: The Department’s procedures were not sufficient to ensure that ETA 2112 reports were accurate and agreed with supporting documentation. Internal controls did not prevent or detect the errors. Effect: Incorrect data was reported which could misrepresent the State’s financial performance in the program. Recommendation: The Department should review its procedures to ensure that ETA 2112 reports are accurate and agree with supporting documentation. We further recommend that internal controls are enhanced to ensure that reports are reviewed for accuracy prior to submission. Views of responsible officials: There is no disagreement with the finding.

Reference Number: 2025-008 Prior Year Finding: No Federal Agency: U.S. Department of Labor State Agency: Executive Office of Labor and Workforce Development Federal Program: Unemployment Insurance Assistance Listing Number: 17.225 Award Number and Year: UI372292255A25 (10/1/2021 – 12/31/2024) UI393282355A25 (10/1/2022 – 12/31/2025) 23A55UI039328 (10/1/2022 – 12/31/2025) 24A55UI00054 (10/1/2023 – 12/31/2026) 25A55UI000099 (10/1/2024 – 12/31/2027) Compliance Requirement: Reporting – ETA 2208A – Quarterly UI Above-Base Report Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Compliance: ETA 2208A, Quarterly UI Above-Base Report (OMB No. 1205-0132) – Quarterly report of staff years worked and paid by program category. Reports are due no later than 30 days after the end of each quarter. Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: ETA 2208A – Quarterly UI Above-Base Reports submitted by the Executive Office of Labor and Workforce Development (Department) contained multiple data entry and calculation errors. Context: Three ETA 2208A reports were selected for testing for each of the 9/30/2024 and 12/31/2024 quarters for a total of six ETA 2208A reports tested. The ETA 2208A is commonly referred to as the “UI‑3,” which is the legacy name for the report. Exceptions were identified in 2 of the 6 reports selected for testing. Specifically, we noted the following: • For 1 of 3 reports selected for the 9/30/2024 quarter, the incorrect number was input on "Line 1 Initial Claims" of the ETA UI-3 Additional Benefits report. The total workload reported was 232 and should have been 268. In addition, "Line 2 weeks claims" for the UI-3 Additional Benefits report was incorrectly reported. The number on the underlying support was 3,661 and the reported total workload was 3,361. • For 1 of 3 reports selected for the 12/31/2024 quarter, the incorrect number was input on "Line 1 Initial Claims" of the UI-3 Additional Benefits report. The total workload reported was 233 and should have been 305. In addition, the underlying support for “Line 1. Initial Claims” reported total workload of 1 for Unemployment Compensation for Federal Employees for the month of December 2024, but should have been reported as 0. Questioned costs: Undetermined. Cause: The Department’s procedures were not sufficient to ensure that ETA 2208A reports were accurate and agreed with supporting documentation. Internal controls did not prevent or detect the errors. Effect: Incorrect data was reported which could misrepresent the State’s financial performance in the program. Recommendation: The Department should review and update its reporting procedures and controls to ensure that ETA 2208A reports are accurate and agree with supporting documentation. We further recommend that internal controls are enhanced to ensure that reports are reviewed for accuracy prior to submission. Views of responsible officials: There is no disagreement with the finding.

Reference Number: 2025-009 Prior Year Finding: No Federal Agency: U.S. Department of Labor State Agency: Executive Office of Labor and Workforce Development Federal Program: Unemployment Insurance Assistance Listing Number: 17.225 Award Number and Year: UI372292255A25 (10/1/2021 – 12/31/2024) UI393282355A25 (10/1/2022 – 12/31/2025) 23A55UI039328 (10/1/2022 – 12/31/2025) 24A55UI00054 (10/1/2023 – 12/31/2026) 25A55UI000099 (10/1/2024 – 12/31/2027) Compliance Requirement: ETA 9052 – Nonmonetary Determination Time Lapse Detection Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Compliance: ETA 9052, Nonmonetary Determination Time Lapse Detection - The ETA 9052 report contains monthly information on the time it takes states to issue nonmonetary determinations from the date the issues are first detected by the agency. Single-claimant and multi-claimant non-monetary determinations are included in the report. Nonmonetary determinations made by organizational units such as Benefits Accuracy Measurement (BAM) and Benefit Payment Control (BPC) are also included in the report. Note: Overpayment notices on uncontested earnings detected by any method (e.g., crossmatch) should not be included. The report is submitted electronically to the ETA National Office on the 20th of the month following the month to which the data relates. Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Department was unable to provide documentation that the ETA 9052 – Nonmonetary Determination Time Lapse Detection report was submitted timely. Context: Four monthly ETA 9052 reports were selected for testing. Specifically, we noted the following: • For 1 of 4 reports selected for testing, the Department was unable to provide support that the report was submitted timely. The report for the month of May 2025 had a submission due date of June 20, 2025. The Department did not maintain a copy of the original report and auditors were unable to verify the submission date. After the original submission, the Department discovered a reporting error caused by a system transition, and the Department submitted a revised report on July 22, 2025. Questioned costs: Undetermined. Cause: The Department’s internal controls were insufficient to ensure that copies of submitted reports were retained. Effect: The untimely submission of required federal reports resulted in noncompliance with federal reporting requirements. Recommendation: The Department should review and update its reporting procedures and controls to ensure that ETA 9052 - Nonmonetary Determination Time Lapse Detection reports are submitted timely and that copies of report submissions are maintained and are readily available for audit. Reports should be reviewed for accuracy prior to submission. Views of responsible officials: There is no disagreement with the finding.

Reference Number: 2025-010 Prior Year Finding: No Federal Agency: U.S. Department of Labor State Agency: Executive Office of Labor and Workforce Development Federal Program: Unemployment Insurance Assistance Listing Number: 17.225 Award Number and Year: 24A55UI00054 (10/1/2023 – 12/31/2026) Compliance Requirement: Reporting – ETA 9130, Financial Status Report, UI Programs Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Compliance: ETA 9130, Financial Status Report, UI Programs (OMB No. 1205-0461) – The ETA 9130 report is used to report program and administrative expenditures. All ETA grantees are required to submit quarterly financial reports for each grant award which they operate, including standard program and pilot, demonstration, and evaluation projects. Financial data is required to be reported cumulatively from grant inception through the end of each reporting period. A separate ETA 9130 is submitted for each of the following: UI, PEUC, and PUA Administration, DUA, TRA/RTAA, and UI Projects (administration and benefits). Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: ETA 9130, Financial Status Reports for UI Programs submitted by the Executive Office of Labor and Workforce Development (Department) did not agree to supporting documentation. Context: Eight ETA 9130 reports were selected for testing. For 1 of the 8 reports tested, we noted the following exception: • Expenditures related to the Interdepartmental Service Agreements (ISA) object class were not included in “Line G Federal Share of Unliquidated Obligations” of the report. The supporting documentation for the report included the object class ISA in the amount of federal share of unliquidated obligations; however, this was not included in the report. Questioned costs: Undetermined. Cause: The Department’s procedures were not sufficient to ensure that ETA 9130 reports were accurate and agreed with supporting documentation. Internal controls did not prevent or detect the errors. Effect: Incorrect data was reported which could misrepresent the State’s financial performance in the program. Recommendation: The Department should review its procedures to ensure that ETA 9130 reports are accurate and agree with supporting documentation. We further recommend that internal controls are enhanced to ensure that reports are reviewed for accuracy prior to submission. Views of responsible officials: There is no disagreement with the finding.

Reference Number: 2025-011 Prior Year Finding: 2024-005 Federal Agency: U.S. Department of Labor State Agency: Executive Office of Labor and Workforce Development Federal Program: Unemployment Insurance, COVID-19 – Unemployment Insurance Assistance Listing Number: 17.225 Award Number and Year: UI372292255A25 (10/1/2021 – 12/31/2024) UI393282355A25 (10/1/2022 – 12/31/2025) 23A55UI039328 (10/1/2022 – 12/31/2025) 24A55UI00054 (10/1/2023 – 12/31/2026) 25A55UI000099 (10/1/2024 – 12/31/2027) Compliance Requirement: Special Tests and Provisions – UI Benefit Payments Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or specific requirement: Compliance: The State Workforce Agency (SWA) is required by 20 CFR section 602.11(d) to operate and maintain a quality control system. The Benefits Accuracy Measurement (BAM) program is DOL’s quality control system designed to assess the accuracy of UI benefit payments and denied claims, unless the SWA is exempted from such requirement (20 CFR section 602.22). BAM estimates error rates, number of claims improperly paid or denied, and dollar amounts of benefits improperly paid or denied, by projecting the results from investigations of statistically sound random samples to the universe of all claims paid and denied in a state. Specifically, the SWA’s BAM unit is required to draw a weekly sample of payments and denied claims, complete prompt, and in-depth investigations to determine if the administration of the UC program is consistent with state and federal law (20 CFR section 602.21(d)). As presented in the ET Handbook No. 395, the investigation involves a review of state agency records, as well as contacting the claimant, employers, and third parties (either in-person, by telephone, or by fax) to conduct new and original fact-finding related to all of the information pertinent to the paid or denied claim that was sampled. BAM investigators review cases for adherence to federal and state law as well as official policy. The following time limits are established for completion of all cases for the year. (The "year" includes all batches of weeks ending in the calendar year.): • a minimum of 70 percent of cases must be completed within 60 days of the week ending date of the batch; • 95 percent of cases must be completed within 90 days of the week ending date of the batch; • a minimum of 98 percent of cases for the year must be completed within 120 days of the ending date of the calendar year. Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Executive Office of Labor and Workforce Development (Department) did not complete BAM case investigations within the time limits established in the ET Handbook No. 395. Context: Sixty cases were selected for testing. The Department did not meet the required time limits for closing cases within 90 days. We noted that 92% of cases tested (55 of 60 cases) were closed within 90 days, which is less than the required 95%. Questioned costs: Undetermined. Cause: The Department’s procedures and controls were not sufficient to ensure it met the required BAM investigation time limits for closing cases. Auditors note that the Department’s corrective action plan from the prior audit had not yet been fully implemented in FY 2025. Effect: Noncompliance with BAM case investigation time limits could delay the detection and correction of inaccurate benefit payments and denied claims. Recommendation: We recommend the Department complete implementation of its corrective action plan from the prior year. We recommend the Department review and enhance procedures and controls to ensure that BAM case investigations are completed timely in accordance with the time limits established in the ET Handbook No. 395. Views of responsible officials: There is no disagreement with the finding.

Reference Number: 2025-012 Prior Year Finding: 2024-006 Federal Agency: U.S. Department of Labor State Agency: Executive Office of Labor and Workforce Development Federal Program: Unemployment Insurance, COVID-19 – Unemployment Insurance Assistance Listing Number: 17.225 Award Number and Year: UI372292255A25 (10/1/2021 – 12/31/2024) UI393282355A25 (10/1/2022 – 12/31/2025) 23A55UI039328 (10/1/2022 – 12/31/2025) 24A55UI00054 (10/1/2023 – 12/31/2026) 25A55UI000099 (10/1/2024 – 12/31/2027) 23A60UR000009 (1/1/2023 – 9/30/2025) 24A60UR000073 (1/1/2024 – 9/30/2026) 25A60UR000122 (1/1/2025 – 6/30/2027) Compliance Requirement: Special Tests and Provisions: UI Reemployment Programs: RESEA Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: Compliance: Per 42 U.S. Code § 506 (a) The Secretary of Labor (in this section referred to as the “Secretary”) shall award grants under this section for a fiscal year to eligible States to conduct a program of reemployment services and eligibility assessments for individuals referred to reemployment services as described in section 503(j) of this title for weeks in such fiscal year for which such individuals receive unemployment compensation. Further, per 42 U.S. Code § 506 (c) (1), In carrying out a State program of reemployment services and eligibility assessments using grant funds awarded to the State under this section, a State shall use such funds only for interventions demonstrated to reduce the number of weeks for which program participants receive unemployment compensation by improving employment outcomes for program participants. The UI program serves as one of the principal “gateways” to the workforce system. It is often the first workforce program accessed by individuals who need workforce services. The Worker Profiling and Reemployment Services (WPRS) and Reemployment Services and Eligibility Assessments (RESEA) programs serve as UI’s primary programs that facilitate the reemployment needs of UI claimants. RESEA is authorized by Section 306 of the Social Security Act and builds on the success of RESEA’s predecessor, the former UI Reemployment and Eligibility Assessment (REA) program. RESEA uses an evidence-based integrated approach that combines an eligibility assessment for continuing UI eligibility and the provision of reemployment services. State administration of the RESEA is voluntary and under certain circumstances may be designed to also satisfy WPRS requirements. Operating guidance for the RESEA program is updated annually. UIPL 10-22 provides RESEA operating Guidance for FY 2022. RESEA-related performance reports are due on the 20th day of the second month following the end of the reporting quarter. A state UI staff member must review these reports for accuracy each calendar quarter and prior to submission, in addition to being reviewed by the RESEA program lead (if a different staff member). Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Department did not review performance reports prior to submission. Context: The Department lacks a formalized process for validating the accuracy of quarterly performance reports. Consequently, there was no documentation available to confirm that these reports were reviewed prior to submission. Questioned costs: Undetermined. Cause: The Department’s procedures and controls were not sufficient to ensure it met RESEA program and reporting requirements. The Department does not have a formal process to validate the accuracy of quarterly performance reports. Auditors note that the Department’s corrective action plan from the prior audit had not yet been fully implemented in FY 2025. Effect: The Department was unable to demonstrate that it was operating the RESEA program in accordance with federal requirements. Recommendation: We recommend the Department complete implementation of its corrective action plan from the prior year. We recommend the Department review and enhance procedures and controls to ensure that RESEA program requirements are met. We further recommend the Department develop a formal process to review quarterly performance reports for accuracy prior to submission. Views of responsible officials: There is no disagreement with the finding.

Reference Number: 2025-013 Prior Year Finding: No Federal Agency: U.S. Department of Labor State Agency: Executive Office of Labor and Workforce Development Federal Program: Unemployment Insurance Assistance Listing Number: 17.225 Award Number and Year: UI372292255A25 (10/1/2021 – 12/31/2024) UI393282355A25 (10/1/2022 – 12/31/2025) 23A55UI039328 (10/1/2022 – 12/31/2025) 24A55UI00054 (10/1/2023 – 12/31/2026) 25A55UI000099 (10/1/2024 – 12/31/2027) Compliance Requirement: Special Tests and Provisions: UI Program Integrity – Overpayments Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Compliance: States are (1) required to impose a monetary penalty (not less than 15 percent) on claimants whose fraudulent acts resulted in overpayments, and (2) states are prohibited from providing relief from charges to an employer’s Unemployment Insurance (UI) account when overpayments are the result of the employer’s failure to respond timely or adequately to a request for information. States may continue to waive recovery of overpayments in certain situations and must continue to offer the individual a fair hearing prior to recovery. In addition, states may approve “blanket waivers” where individuals are eligible for payment under an unemployment benefit program for a given week, but through no fault of the individual, they were paid incorrectly under either the PUA or PEUC program at a higher WBA, or specific to PUA, when, through no fault of the individual, the state paid the individual a minimum WBA based on DUA guidance other than UIPL No. 03-20 (UIPL No. 20-21, section 4.d.ii). Program requirements for overpayments include the State must identify the basis for the overpayment consistent with its written procedures. An overpayment memorandum is created summarizing the details of the overpayment and submitted to UI cross-match staff or claims deputy for review. Upon review, the overpayment is established, and a Deputy Decision or WVUC-B-14-J Overpayment Determination is generated and sent to the claimant. Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Executive Office of Labor and Workforce Development (Department) was not in compliance with program requirements for recovering overpayments. Context: Sixty overpayment claims were selected for testing. For 10 of 60 claims selected for testing we noted multiple errors were identified regarding overpayments documentation and recovery. Specifically, we noted the following: • For 5 of 60 claims, the claim was the result of a claimant error related to fault or fraud. The claimant was not being charged interest on the overpayment as required. • For 3 of 60 claims, the incorrect cause of the overpayment was reported in the system. • For 1 of 60 claims, there was a penalty balance charged to the claimant although the overpayment was not the result of fault or fraud. Questioned costs: Undetermined. Cause: The Department’s procedures and controls are not sufficient to ensure that overpayments are recovered in accordance with program requirements. Staff are not adequately trained in proper handling of overpayment documentation and recovery. Effect: Failure to recover overpayments in accordance with federal requirements compromises the integrity and sustainability of the UI program. Unrecovered overpayments reduce funds available to pay legitimate benefits, increase the risk of fraud and improper payments, and undermine compliance with federal program standards. Recommendation: The Department should perform staff training and strengthen its procedures and controls to ensure overpayments are identified, recorded, and recovered in a timely manner and in full compliance with federal requirements. Views of responsible officials: There is no disagreement with the finding.

Reference Number: 2025-014 Prior Year Finding: No Federal Agency: U.S. Department of Labor State Agency: Executive Office of Labor and Workforce Development Federal Program: WIOA Cluster, Employment Service Cluster Assistance Listing Number: 17.258, 17.259, 17.278, 17.207, 17.801 Award Number and Year: AA-38535-22-55-A-25 (4/1/2022 – 6/30/2025) 23A55AW000048 (7/1/2023 – 6/30/2026) 23A55AY000020 (4/1/2023 – 6/30/2026) 23A55WP000005 (7/1/2023 – 9/30/2026) 24A55WP000063 (7/1/2024 – 9/30/2027) 25A55WP000139 (7/1/2025 - 9/30/2028) 24A55WG000092 ((7/1/2024 – 9/30/2027) 23A55WG000028 (7/1/2023 – 9/30/2026) ES387362255A25 (7/1/2022 - 9/30/2025) 25555DV000114 (10/1/2024 - 9/30/2025) 24555DV000087 (10/1/2023 - 12/31/2025) 23555DV000008 (10/1/2022 - 12/31/2024) Compliance Requirement: Allowable Costs/Cost Principles – Indirect Costs Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: Compliance: Per 2 CFR Part 200, Appendix V, all costs and other data used to distribute costs included in the central service cost allocation plan should be supported by formal accounting and other records that will support the propriety of the costs assigned to Federal awards. Per 2 CFR Part 200, Appendix VII C.1.b., where a governmental unit's department or agency has several major functions which benefit from its indirect costs in varying degrees, the allocation of indirect costs may require the accumulation of such costs into separate cost groupings which then are allocated individually to benefitted functions by means of a base which best measures the relative degree of benefit. The indirect costs allocated to each function are then distributed to individual Federal awards and other activities included in that function by means of an indirect cost rate(s). Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Executive Office of Labor and Workforce Development (the Department) was unable to provide documentation supporting the calculation of its internal negotiated indirect cost rate (NICR) which was approved by the U.S. Department of Labor and was in effect for FY 2025. Context: WIOA Cluster: For 32 of 40 reimbursement requests selected for testing, the Department applied the approved internal NICR in effect for FY 2025. Auditors recalculated the NICR using supporting documentation provided by the Department and determined that the rate was 6.60% but the rate submitted to and approved by the U.S. Department of Labor was 4.19%. The Department was unable to provide documentation for how the 4.19% rate was calculated. Employment Service Cluster: For 32 of 40 reimbursement requests selected for testing, the Department applied the approved internal NICR in effect for FY 2025. Auditors recalculated the NICR using supporting documentation provided by the Department and determined that the rate was 6.60% but the rate submitted to and approved by the U.S. Department of Labor was 4.19%. The Department was unable to provide documentation for how the 4.19% rate was calculated. Cause: The Department’s procedures and internal controls were not operating effectively to ensure that it properly calculated its NICR nor that it maintained appropriate documentation supporting the rate calculation. The department indicated the lack of supporting documentation for the 4.19% rate was due to staff turnover. Effect: The rate supported by documentation was 6.60%, but the rate submitted to the U.S. Department of Labor was 4.19%, resulting in the Department receiving lower indirect cost reimbursement than it was entitled to. Questioned costs: None. The approved indirect cost rate was properly applied, but was lower than the rate calculated using supporting documentation. Recommendation: The Department should review and enhance its procedures and internal controls regarding the calculation of its negotiated indirect cost rate and for maintaining documentation supporting the rate calculation. This documentation should be readily available for audit. Views of responsible officials: There is no disagreement with the finding.

Reference Number: 2025-015 Prior Year Finding: 2024-010 Federal Agency: U.S. Department of Labor State Agency: Executive Office of Labor and Workforce Development Federal Program: WIOA Cluster Assistance Listing Number: 17.258, 17.259, 17.278 Award Number and Year: 24A55AW000097 (7/1/2024 – 6/30/2027) AA-38535-22-55-A-25 (4/1/2022 – 6/30/2025) 24A55AT000067 (7/1/2024 – 6/30/2027) 24A55AY000057 (4/1/2024 – 6/30/2027) 23A55AY000020 (4/1/2023 – 6/30/2026) Compliance Requirement: Reporting – Federal Funding Accountability and Transparency Act (FFATA) Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance Criteria or specific requirement: Compliance: Per the Federal Funding Accountability and Transparency Act (FFATA), prime (direct) recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Reports must be filed in FSRS by the end of the month following the month in which the prime recipient awards any sub-grant greater than or equal to $30,000. If the initial award is below $30,000 but subsequent grant modifications result in a total award equal to or over $30,000, the award will be subject to the reporting requirements as of the date the award exceeds $30,000. If the initial award equals or exceeds $30,000 but funding is subsequently de-obligated such that the total award amount falls below $30,000, the award continues to be subject to FFATA reporting requirements. On March 8, 2025, FSRS.gov was retired, and all subaward reporting data and functionality transitioned to SAM.gov after that date. The following key data elements must be reported: Subawardee Name and Data Universal Numbering System (DUNS) number; Amount of Subaward (inclusive of modifications); Subaward Obligation/Action Date; Date of Report Submission; Subaward Number; Project Description; and Names and Compensation of Highly Compensated Officers. (Names and Compensation of Highly Compensated Officers must only be reported when the entity in the preceding fiscal year received 80 percent or more of its annual gross revenues in Federal awards; and $25,000,000 or more in annual gross revenues from Federal awards; and the public does not have access to this information about the compensation of the senior executives of the entity through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. §§ 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986.) Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Section III – Findings and Questioned Costs – Major Federal Programs (Continued) Condition: The Executive Office of Labor and Workforce Development (Department) did not report subaward information timely and did not have evidence of review and approval of FFATA reports prior to report submission. Context: Ten subawards were selected for testing and several of these subawards were modified after the initial award, for a total of fourteen subaward transactions tested. Nine of fourteen subaward transactions tested were not reported in accordance with FFATA requirements. Specifically, we noted the following: • 9 of 14 subaward transactions were not reported timely. The subaward transactions were reported from one to seven months after the due date. • For 2 of 14 subaward transactions, the Department was unable to produce documentation supporting review and approval of the FFATA reports prior to submission. SEE SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR CHART/TABLE Cause: The Department’s procedures and controls were not sufficient to ensure that subaward transactions were reported timely nor that the FFATA report submissions were reviewed and approved prior to submission. Auditors note that the Department’s corrective action plan from the prior audit had not yet been fully implemented in FY 2025. Effect: Subawards were not reported in accordance with FFATA requirements. Questioned costs: None. Recommendation: We recommend the Department complete implementation of its corrective action plan from the prior year. The Department’s procedures and internal controls should ensure that all required FFATA report submissions are reviewed, approved and subsequently reported timely no later than the end of the month following the month of issuance of the subaward or subaward modification. Documentation of implemented controls should be readily available for audit. Views of responsible officials: There is no disagreement with the finding.

Reference Number: 2025-016 Prior Year Finding: 2024-011 Federal Agency: U.S. Department of Labor State Agency: Executive Office of Labor and Workforce Development Federal Program: WIOA Cluster Assistance Listing Number: 17.258, 17.259, 17.278 Award Number and Year: 23A55AT000036 (7/1/2023 – 6/30/2026) 24A55AW000097 (7/1/2024 – 6/30/2027) AA-38535-22-55-A-25 (4/1/2022 – 6/30/2025) 24A55AT000067 (7/1/2024 – 6/30/2027) 23A55AW000048 (7/1/2023 – 6/30/2026) Compliance Requirement: Reporting – ETA 9130 – Financial Report Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance Criteria or specific requirement: Compliance: ETA 9130, Financial Report – All ETA grantees are required to submit quarterly financial reports for each grant award they receive. Reports are required to be prepared using the specific format and instructions for the applicable program(s): Employment Service and Unemployment Insurance Programs (Employment Service Cluster) and Workforce Innovation and Opportunity Act (WIOA) instructions for the following: Statewide Adult; Workforce Statewide Youth; Statewide Dislocated Worker; Local Adult; Local Youth; and Local Dislocated Worker. A separate ETA 9130 is submitted for each of these categories. Funds reserved and set aside for PFP contract strategies are required to be reported on ETA 9130 basic reports for each ESC or WIOA fund source utilized. Reports are due 45 days after the end of the reporting quarter. Financial data is required to be reported cumulatively from grant inception through the end of each reporting period. Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: ETA 9130 financial reports submitted by the Executive Office of Labor and Workforce Development (Department) did not agree to supporting documentation. Context: Nine ETA 9130 reports were selected for testing, which included three reports for the Adult program, four reports for the Dislocated Worker program, and two reports for the Youth program. For 7 of the 9 reports tested, exceptions were noted for several line items on each report. Specifically, we noted the following exceptions: • 3 of 3 reports for the Adult program did not agree to supporting documentation. The discrepancies were found in the following line items: o Federal share of expenditure o Total administration expenditures o Federal share unobligated obligations o Total program income earned o Program income expended in accordance with the addition method • 3 of 4 reports for the Dislocated Worker program did not agree to support documentation. The discrepancies were found in the following line items: o Federal share of expenditure o Total administration expenditures o Federal share unobligated obligations o Total program income earned o Program income expended in accordance with the addition method o Real property proceeds expended • 1 of 2 reports for the Youth program did not agree to supporting documentation. The discrepancies were found in the following line items: o Recapture funds expended o Program income expended in accordance with the addition method Cause: The Department’s procedures were not sufficient to ensure that ETA 9130 reports were accurate and agreed with supporting documentation. Internal controls did not prevent or detect the errors. Auditors note that the Department’s corrective action plan from the prior audit had not yet been fully implemented in FY 2025. Effect: Incorrect data was reported which could misrepresent the State’s financial performance in the program. Questioned costs: Undetermined. Recommendation: We recommend the Department complete implementation of its corrective action plan from the prior year. The Department should review its procedures to ensure that ETA 9130 reports are accurate and agree with supporting documentation. We further recommend that internal controls are enhanced to ensure that reports are reviewed for accuracy prior to submission. Views of responsible officials: There is no disagreement with the finding.

Reference Number: 2025-017 Prior Year Finding: 2024-013 Federal Agency: U.S. Department of Labor State Agency: Executive Office of Labor and Workforce Development Federal Program: WIOA Cluster Assistance Listing Number: 17.258, 17.259, 17.278 Award Number and Year: 24A55AW000097 (7/1/2024 – 6/30/2027) 23A55AW000048 (7/1/2023 – 6/30/2026) AA-38535-22-55-A-25 (7/1/2022 – 6/30/2025) Compliance Requirement: Allowable Costs/Cost Principles – Time and Effort Reporting Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or specific requirement: Compliance: Per 2 CFR § 200.430 (a), costs of compensation are allowable to the extent that they satisfy the specific requirements of this part, and that the total compensation for individual employees: (1) Is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity consistently applied to both Federal and non-Federal activities; (2) Follows an appointment made in accordance with a non-Federal entity's laws or rules or written policies and meets the requirements of Federal statute, where applicable; and (3) Is determined and supported as provided in paragraph (i) of this section, Standards for Documentation of Personnel Expenses, when applicable. Per 2 CFR § 200.430 (i), charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: • Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated, • Be incorporated into the official records of the non-Federal entity, • Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities, • Encompass both federally assisted, and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity's written policy, • Comply with the established accounting policies and practices of the non-Federal entity, • Support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Executive Office of Labor and Workforce Development (the Department) charged budgeted personnel costs to the program instead of actual costs due to errors coding employee timesheets. Context: Two of sixty timesheets selected for testing charged costs to the program based on budgeted rates instead of actual time worked per employee timesheets. Combination codes are used by employees to allocate and certify hours worked to Federal grants and employees’ supervisors are required to perform a line-item review of hours spent on each grant before approving timesheets. If a timesheet is approved without the use of combination codes, the system defaults to budgeted grant allocations entered into the Labor Cost Management (LCM) module of the Massachusetts Management Accounting and Reporting System (MMARS). For these two transactions, the employee had a bilingual differential and was missing combination codes. Payment was not based on the employee timesheets of 55% worked on the program but instead was based on a budgeted percentage of time of 100%. The program was therefore overcharged by 45% for the bilingual differential portion of the employee payroll. Cause: The Department’s controls were not operating effectively to ensure that time and effort reporting was performed in accordance with federal requirements. Auditors note that the Department’s corrective action plan from the prior audit had not yet been fully implemented in FY 2025. Effect: Noncompliance occurred as payroll charges allocated to the grants were not reflective of actual activity for which the employees were compensated. Questioned costs: $72, the amount overcharged to the program for the pay period tested for the bilingual differential. Recommendation: We recommend the Department complete implementation of its corrective action plan from the prior year. The Department should update its procedures and controls and perform additional training over time and effort reporting to ensure that payroll costs charged to the program are based on actual time and effort and a combination code that is allowable under the program. The Department should not seek federal reimbursement unless it can substantiate that the time and effort was dedicated to the federal program. Views of responsible officials: There is no disagreement with the finding.

Reference Number: 2025-018 Prior Year Finding: No Federal Agency: U.S. Department of Labor State Agency: Executive Office of Labor and Workforce Development Federal Program: WIOA Cluster Assistance Listing Number: 17.258, 17.259, 17.278 Award Number and Year: 24A55AW000097 (7/1/2024 – 6/30/2027) 23A55AW000048 (7/1/2023 – 6/30/2026) AA-38535-22-55-A-25 (7/1/2022 – 6/30/2025) Compliance Requirement: Allowable Costs/Cost Principles – Time and Effort Reporting Earmarking Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: Compliance: Per 2 CFR § 200.430 (a), costs of compensation are allowable to the extent that they satisfy the specific requirements of this part, and that the total compensation for individual employees: (1) Is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity consistently applied to both Federal and non-Federal activities; (2) Follows an appointment made in accordance with a non-Federal entity's laws or rules or written policies and meets the requirements of Federal statute, where applicable; and (3) Is determined and supported as provided in paragraph (i) of this section, Standards for Documentation of Personnel Expenses, when applicable. Per 2 CFR § 200.430 (i), charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: • Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated, • Be incorporated into the official records of the non-Federal entity, • Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities, • Encompass both federally assisted, and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity's written policy, • Comply with the established accounting policies and practices of the non-Federal entity, • Support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Earmarking – Statewide Activities: The governor shall reserve not more than 15 percent of each of the amounts allotted to the state Adult, Dislocated Worker, and Youth Activities for a fiscal year to carry out statewide activities under 29 USC 3164(b) or statewide employment and training activities for adults or dislocated workers under 29 USC 3174(a) (29 USC 3163(a), 128 Stat. 1502). Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Executive Office of Labor and Workforce Development (the Department) does not have procedures to ensure it does not exceed the 15% limit for statewide activities. Context: The Department does not have controls in place to track or monitor the Governor's Discretionary Funds (GDF) to ensure expenditures charged against this allotment, whether through direct timesheets or payroll adjustments, do not exceed the required 15% limit across all programs within the WIOA Cluster. Cause: The Department lacks sufficient procedures or controls to ensure that it does not exceed the 15% limit for statewide activities. Effect: Failure to track or monitor the GDF could result in the Department exceeding the 15% limit for statewide activities. Questioned costs: None noted. The Department did not exceed the 15% limit. Recommendation: We recommend the Department develop procedures and controls to ensure expenditures coded to the GDF from timesheets or manual adjustments do not exceed the 15% limit. Views of responsible officials: There is no disagreement with the finding.

Reference Number: 2025-019 Prior Year Finding: 2024-014 Federal Agency: U.S. Department of Labor State Agency: Executive Office of Labor and Workforce Development Federal Program: WIOA Cluster Assistance Listing Number: 17.258, 17.259, 17.278 Award Number and Year: AA-38535-22-55-A-25 (4/1/2022 – 6/30/2025) 23A55AY000020 (4/2/2023 – 6/30/2026) 23A55AT000036 (7/1/2023 – 6/30/2026) 23A55AW000048 (7/1/2023 – 6/30/2026) 24A55AY000057 (4/1/2024 – 6/30/2027) 24A55AT000067 (7/1/2024 – 6/30/2027) 24A55AW000097 (7/1/2024 – 6/30/2027) Compliance Requirement: Subrecipient Monitoring Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or specific requirement: Compliance: Per 2 CFR section 200.332(a) - Requirements for Pass-Through Entities states, in part, that all pass-through entities must ensure that every subaward is clearly identified to the subrecipient as a subaward and includes information at the time of the subaward and if any of these data elements change, include the changes in subsequent subaward modification. When some of this information is not available, the pass-through entity must provide the best information available to describe the Federal award and subaward. Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Executive Office of Labor and Workforce Development (Department) omitted required federal award information from subawards it issued to their subrecipients. Context: For six of six subawards selected for testing, the subaward agreement did not include the federal award date for when the Federal agency awarded the funds to the prime recipient. Cause: The Department’s procedures and internal controls were not sufficient to ensure that subawards included all required information in accordance with 2 CFR section 200.332. Effect: Excluding required federal grant award information at the time of the subaward may cause subrecipients and their auditors to be uninformed about specific program information and other regulations that apply to the funds they receive. There is also the potential for subrecipients to have incomplete Schedules of Expenditures of Federal Awards (SEFA) in their Single Audit reports, and federal funds may not be properly audited at the subrecipient level in accordance with the Uniform Guidance. Questioned costs: Undetermined. Recommendation: We recommend the Department review and enhance internal controls and procedures to ensure that required information is included in its subawards. In its FY 2024 corrective action plan, the Department indicated that it had revised its documented internal controls and procedures to correct the prior year finding. We recommend that the Department revisit its procedures and controls and update as needed to ensure that the federal award date is included in all subaward agreements. Views of responsible officials: There is no disagreement with the finding.

Reference Number: 2025-020 Prior Year Finding: No Federal Agency: U.S. Department of Education State Agency: Department of Elementary and Secondary Education Federal Program: COVID-19 – Elementary and Secondary School Emergency Relief Fund COVID-19 – American Rescue Plan-Elementary and Secondary School Emergency Relief (ARP ESSER) Assistance Listing Number: 84.425D, 84.425U Award Number and Year: S425D210025 (1/6/2021 – 3/31/2025) S425U210025 (3/4/2021 – 3/28/2026) Compliance Requirement: Reporting – Federal Funding Accountability and Transparency Act (FFATA) Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance Criteria or specific requirement: Compliance: Per the Federal Funding Accountability and Transparency Act (FFATA), prime (direct) recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Reports must be filed in FSRS by the end of the month following the month in which the prime recipient awards any sub-grant greater than or equal to $30,000. If the initial award is below $30,000 but subsequent grant modifications result in a total award equal to or over $30,000, the award will be subject to the reporting requirements as of the date the award exceeds $30,000. If the initial award equals or exceeds $30,000 but funding is subsequently de-obligated such that the total award amount falls below $30,000, the award continues to be subject to FFATA reporting requirements. On March 8, 2025, FSRS.gov was retired, and all subaward reporting data and functionality transitioned to SAM.gov after that date. The following key data elements must be reported: Subawardee Name and Data Universal Numbering System (DUNS) number; Amount of Subaward (inclusive of modifications); Subaward Obligation/Action Date; Date of Report Submission; Subaward Number; Project Description; and Names and Compensation of Highly Compensated Officers. (Names and Compensation of Highly Compensated Officers must only be reported when the entity in the preceding fiscal year received 80 percent or more of its annual gross revenues in Federal awards; and $25,000,000 or more in annual gross revenues from Federal awards; and the public does not have access to this information about the compensation of the senior executives of the entity through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. §§ 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986.) Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Department of Elementary and Secondary Education (Department) did not report subaward information in accordance with FFATA requirements. Context: Twelve of forty subawards selected for testing were not reported timely. The subawards were reported from 1 day to 423 days late. SEE SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR CHART/TABLE Cause: The Department’s procedures and controls were not sufficient to ensure that subawards were reported no later than the end of the month following the month of issuance. Effect: Subawards were not reported timely in accordance with FFATA reporting requirements. Questioned costs: None noted. Recommendation: We recommend the Department develop procedures and internal controls to ensure that all required subawards are reported timely and accurately no later than the end of the month following the month of issuance of each subaward. Views of responsible officials: There is no disagreement with the finding.

Reference Number: 2025-021 Prior Year Finding: No Federal Agency: U.S. Department of Health and Human Services State Agency: Executive Office of Aging and Independence Federal Program: Aging Cluster Assistance Listing Number: 93.044, 93.045, 93.053 Award Number and Year: 2101MASSC6 (4/1/2021 - 9/30/2024) 2101MAHDC6 (4/1/2021 - 9/30/2024) 2101MACMC6 (4/1/2021 - 9/30/2024) 2201MAOASS (10/1/2021 - 9/30/2024) 2201MAOAPH (10/1/2021 - 9/30/2024) 2201MAOAHD (10/1/2021 - 9/30/2024) 2201MAOANS (10/1/2021 - 9/30/2024) 2201MAOACM (10/1/2021 - 9/30/2024) 2301MAOACM (10/1/2022 - 9/30/2024) 2301MAOAHD (10/1/2022 - 9/30/2024) 2301MAOAPH (10/1/2022 - 9/30/2025) 2301MAOASS (10/1/2022 - 9/30/2024) 2401MAOANS (10/1/2023 - 9/30/2025) 2401MAOASS (10/1/2023 - 9/30/2025) 2401MAOACM (10/1/2023 - 9/30/2025) 2401MAOAHD (10/1/2023 - 9/30/2025) 2501MAOANS (10/1/2024 - 9/30/2026) 2501MAOASS (10/1/2024 - 9/30/2026) 2501MAOACM (10/1/2024 - 9/30/2026) 2501MAOAHD (10/1/2024 - 9/30/2026) Compliance Requirement: Reporting - Financial Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance Criteria or specific requirement: Compliance: Standard Form 425 - The submission of interim federal financial reports (FFR) will be on a quarterly, semi-annual, or annual basis, as directed by the Federal agency. A final FFR shall be submitted at the completion of the award agreement. The following reporting period end dates shall be used for interim reports: 3/31, 6/30, 9/30, or 12/31. For final FFRs, the reporting period end date shall be the end date of the project or grant period. Quarterly and semi-annual interim reports shall be submitted no later than 30 days after the end of each reporting period. Annual reports shall be submitted no later than 90 days after the end of each reporting period. Final reports shall be submitted no later than 90 days after the project or grant period end date. Administration for Community Living (ACL)/Administration of Aging (AoA) Title III Supplemental Form to SF-425: Final reports should be marked on the supplemental when a final has been submitted in the current and/or prior reporting periods. State Agencies are required to complete the Supplemental Form to the SF-425 Title III. States which are a Single State Planning and Service Area and do not have Area Agencies on Aging (AAA) are also required to complete the ACL/AoA Supplemental Form with each submission. This includes all lines and columns, except where a line is specifically designated for an Area Agency on Aging (AAA). The totals for each Part should total back to the ITEM on the SF425 form. Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Executive Office of Aging and Independence (Department) failed to submit Federal Financial Reports (FFRs) and Title III Supplemental Form to SF-425 as required by the program. Context: Eleven of fourteen FFRs required to be submitted by the Department during FY 2025 were not submitted. The Department submitted reports only for awards 2201MAOACM, 2201MAOAHD, and 2201MAOASS. Three of four Title III Supplemental Form to SF-425 required to be submitted by the Department during FY 2025 were not submitted. The Department only submitted a report related to 2022. Questioned costs: Undetermined. Cause: The Department does not have procedures or internal controls to ensure that FFRs and Title III Supplemental Form to SF-425 are submitted as required by the program. Effect: FFRs were not submitted for approximately 80% of the grant awards issued to the Department and Title III Supplemental Form to SF-425 were not submitted for approximately 75% of the open grant years. Recommendation: We recommend the Department develop procedures and internal controls to ensure that it submits reports for all grant awards it receives for the program, in accordance with its grant agreements. Views of responsible officials: There is no disagreement with the finding.

Reference Number: 2025-022 Prior Year Finding: 2024-016 Federal Agency: U.S. Department of Health and Human Services State Agency: Executive Office of Aging and Independence Federal Program: Aging Cluster Assistance Listing Number: 93.044, 93.045, 93.053 Award Number and Year: 2101MASSC6 (4/1/2021 - 9/30/2024) 2101MAHDC6 (4/1/2021 - 9/30/2024) 2101MACMC6 (4/1/2021 - 9/30/2024) 2201MAOASS (10/1/2021 - 9/30/2024) 2201MAOAPH (10/1/2021 - 9/30/2024) 2201MAOAHD (10/1/2021 - 9/30/2024) 2201MAOANS (10/1/2021 - 9/30/2024) 2201MAOACM (10/1/2021 - 9/30/2024) 2301MAOACM (10/1/2022 - 9/30/2024) 2301MAOAHD (10/1/2022 - 9/30/2024) 2301MAOAPH (10/1/2022 - 9/30/2025) 2301MAOASS (10/1/2022 - 9/30/2024) 2401MAOANS (10/1/2023 - 9/30/2025) 2401MAOASS (10/1/2023 - 9/30/2025) 2401MAOACM (10/1/2023 - 9/30/2025) 2401MAOAHD (10/1/2023 - 9/30/2025) 2501MAOANS (10/1/2024 - 9/30/2026) 2501MAOASS (10/1/2024 - 9/30/2026) 2501MAOACM (10/1/2024 - 9/30/2026) 2501MAOAHD (10/1/2024 - 9/30/2026) Compliance Requirement: Reporting – Federal Funding Accountability and Transparency Act (FFATA) Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance Criteria or specific requirement: Compliance: Per the Federal Funding Accountability and Transparency Act (FFATA), prime (direct) recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Reports must be filed in FSRS by the end of the month following the month in which the prime recipient awards any sub-grant greater than or equal to $30,000. If the initial award is below $30,000 but subsequent grant modifications result in a total award equal to or over $30,000, the award will be subject to the reporting requirements as of the date the award exceeds $30,000. If the initial award equals or exceeds $30,000 but funding is subsequently de-obligated such that the total award amount falls below $30,000, the award continues to be subject to FFATA reporting requirements. On March 8, 2025, FSRS.gov was retired, and all subaward reporting data and functionality transitioned to SAM.gov after that date. The following key data elements must be reported: Subawardee Name and Data Universal Numbering System (DUNS) number; Amount of Subaward (inclusive of modifications); Subaward Obligation/Action Date; Date of Report Submission; Subaward Number; Project Description; and Names and Compensation of Highly Compensated Officers. (Names and Compensation of Highly Compensated Officers must only be reported when the entity in the preceding fiscal year received 80 percent or more of its annual gross revenues in Federal awards; and $25,000,000 or more in annual gross revenues from Federal awards; and the public does not have access to this information about the compensation of the senior executives of the entity through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. §§ 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986.) Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Executive Office of Aging and Independence (Department) did not report subaward information per FFATA requirements. Context: The Department informed auditors that no subawards were reported. Therefore, a sample was unavailable for testing. Cause: The Department does not have procedures or controls regarding subaward reporting in accordance with FFATA requirements. Auditors noted that the Department’s corrective action plan from the prior audit had not been completed. Effect: Subawards were not reported in accordance with FFATA requirements. Questioned costs: None noted. Recommendation: We recommend the Department complete implementation of its corrective action plan from the prior year. We recommend the Department develop procedures and internal controls to ensure that all required subawards are reported timely and accurately no later than the end of the month following the month of issuance of each subaward. Views of responsible officials: There is no disagreement with the finding.

Reference Number: 2025-023 Prior Year Finding: 2024-018 Federal Agency: U.S. Department of Health and Human Services State Agency: Executive Office of Aging and Independence Federal Program: Aging Cluster Assistance Listing Number: 93.044, 93.045, 93.053 Award Number and Year: 2101MASSC6 (4/1/2021 - 9/30/2024) 2101MAHDC6 (4/1/2021 - 9/30/2024) 2101MACMC6 (4/1/2021 - 9/30/2024) 2201MAOASS (10/1/2021 - 9/30/2024) 2201MAOAPH (10/1/2021 - 9/30/2024) 2201MAOAHD (10/1/2021 - 9/30/2024) 2201MAOANS (10/1/2021 - 9/30/2024) 2201MAOACM (10/1/2021 - 9/30/2024) 2301MAOACM (10/1/2022 - 9/30/2024) 2301MAOAHD (10/1/2022 - 9/30/2024) 2301MAOAPH (10/1/2022 - 9/30/2025) 2301MAOASS (10/1/2022 - 9/30/2024) 2401MAOANS (10/1/2023 - 9/30/2025) 2401MAOASS (10/1/2023 - 9/30/2025) 2401MAOACM (10/1/2023 - 9/30/2025) 2401MAOAHD (10/1/2023 - 9/30/2025) 2501MAOANS (10/1/2024 - 9/30/2026) 2501MAOASS (10/1/2024 - 9/30/2026) 2501MAOACM (10/1/2024 - 9/30/2026) 2501MAOAHD (10/1/2024 - 9/30/2026) Compliance Requirement: Subrecipient Monitoring Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance Criteria or specific requirement: Compliance: Per 2 CFR section 200.332(a) - Requirements for Pass-Through Entities states, in part, that all pass-through entities must ensure that every subaward is clearly identified to the subrecipient as a subaward and includes information at the time of the subaward and if any of these data elements change, include the changes in subsequent subaward modification. When some of this information is not available, the pass-through entity must provide the best information available to describe the Federal award and subaward. Per 2 CFR section 200.332(e) and (g), pass-through entities must monitor the activities of a subrecipient as necessary to ensure that the subrecipient complies with Federal statutes, regulations, and the terms and conditions of the subaward. The pass-through entity is responsible for monitoring the overall performance of a subrecipient to ensure that the goals and objectives of the subaward are achieved. In monitoring a subrecipient, a pass-through entity must review financial and performance reports, ensure that the subrecipient takes corrective action on all significant developments that negatively affect the subaward, issue a management decision for audit findings pertaining only to the Federal award provided to the subrecipient from the pass-through entity, resolve audit findings specifically related to the subaward, and verify that a subrecipient is audited as required by Subpart F. Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Executive Office of Aging and Independence (Department) issued subawards that did not contain all required federal award information, and it failed to properly monitor subrecipients. Context: Exceptions were found for eight of eight subawards selected for testing. Subawards were missing one or more required federal award identification elements and were not properly monitored. Specifically, we noted the following: • 4 of 8 subawards were missing one or more required award identification elements including the Federal Award Date, the Federal Award Identification Number (FAIN), the name of the Federal agency, the Assistance Listing number (ALN) and the federal award title, the dollar amount made available under each ALN, and the federal award project description as required by the Federal Funding Accountability and Transparency Act (FFATA). • 2 of 8 subrecipients selected for testing were not properly monitored by the Department. The Department was unable to provide documentation that it had proper monitoring procedures in place nor that monitoring procedures were followed for these subrecipients. • For 1 of 8 subrecipients, the Department did not obtain a copy of the subrecipient’s annual single audit report. Therefore, the Department did not verify that its annual single audit had been conducted, nor did it issue a management decision on audit findings. Questioned costs: Undetermined. Cause: The Department’s procedures and internal controls were not sufficient to ensure that the Department provided all required federal information to subrecipients at the time of the subaward nor that subrecipient monitoring was completed in accordance with the requirements of the federal programs. Auditors noted that the Department’s corrective action plan from the prior audit had not been completed. Effect: Excluding required federal grant award information at the time of the subaward may cause subrecipients and their auditors to be uninformed about specific program and other regulations that apply to the funds they receive. There is also the potential for subrecipients to have incomplete Schedules of Expenditures of Federal Awards (SEFA) in their Single Audit reports, and federal funds may not be properly audited at the subrecipient level in accordance with the Uniform Guidance. Failure to conduct adequate subrecipient monitoring may result in a failure of the Department to detect that subawards were used for unauthorized purposes, were managed in violation of the terms and conditions of the subawards, or that subaward performance goals were not achieved. There is an increased risk that subrecipients could be inappropriately spending and/or inaccurately tracking and reporting federal funds over multiple year periods, and these discrepancies may not be properly monitored, detected, and corrected by Department personnel on a timely basis. Recommendation: We recommend the Department complete implementation of its corrective action plan from the prior year. The Department should review and enhance internal controls and procedures to ensure that it includes all required information in the subaward agreements. We also recommend the Department review and enhance its internal controls and procedures to ensure subrecipient monitoring is performed in compliance with the requirements of the federal programs. Views of responsible officials: There is no disagreement with the finding.

Reference Number: 2025-024 Prior Year Finding: No Federal Agency: U.S. Department of Health and Human Services State Agency: Executive Office of Aging and Independence Federal Program: Aging Cluster Assistance Listing Number: 93.044, 93.045, 93.053 Award Number and Year: 2101MASSC6 (4/1/2021 - 9/30/2024) 2101MAHDC6 (4/1/2021 - 9/30/2024) 2101MACMC6 (4/1/2021 - 9/30/2024) 2201MAOASS (10/1/2021 - 9/30/2024) 2201MAOAPH (10/1/2021 - 9/30/2024) 2201MAOAHD (10/1/2021 - 9/30/2024) 2201MAOANS (10/1/2021 - 9/30/2024) 2201MAOACM (10/1/2021 - 9/30/2024) 2301MAOACM (10/1/2022 - 9/30/2024) 2301MAOAHD (10/1/2022 - 9/30/2024) 2301MAOAPH (10/1/2022 - 9/30/2025) 2301MAOASS (10/1/2022 - 9/30/2024) 2401MAOANS (10/1/2023 - 9/30/2025) 2401MAOASS (10/1/2023 - 9/30/2025) 2401MAOACM (10/1/2023 - 9/30/2025) 2401MAOAHD (10/1/2023 - 9/30/2025) 2501MAOANS (10/1/2024 - 9/30/2026) 2501MAOASS (10/1/2024 - 9/30/2026) 2501MAOACM (10/1/2024 - 9/30/2026) 2501MAOAHD (10/1/2024 - 9/30/2026) Compliance Requirement: Matching Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: Compliance: Matching requirements for Title III Supportive Services and Nutrition Services and American Rescue Plan Supportive Services and Nutrition Services Grants include the following: • State and Area Agencies – Area Plan Administration: State and area agencies, in the aggregate, must contribute at least 25 percent of the costs of administration of area plans. For States, since this match is computed based on the aggregate of all area agencies in the state. • Service Provision: All services, whether provided by the State Agency, an Area Agency, or other service providers (excluding any ombudsman services provided under the authority of 42 USC 3024 (d)(1)(D)) must be funded with a nonfederal match of at least 15 percent. One-third of the required 15 percent match must come from state sources, and this percentage must be met on a statewide basis. Funds for ombudsman services provided under the authority of 42 USC 3024 (d)(1)(B) are not required to be matched. Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Executive Office of Aging and Independence (Department) did not review its calculation of matching requirements for accuracy. Context: The Department’s calculation of match for Area Plan Administration and for Service Provision were not reviewed for accuracy prior to submission. Auditors determined that the calculations did not agree to supporting documentation. These variances did not affect the total match calculated and the Department met compliance related to the program’s overall required match. Questioned costs: None noted. The Department’s overall match requirement was met. Cause: The Department’s internal controls were not sufficient to ensure that calculations of its matching requirements were reviewed for accuracy prior to submission. Effect: Failure to review matching requirement calculations could result in potential errors going undetected and the Department might not meet its matching requirements. Recommendation: We recommend the Department review and enhance its internal controls regarding review and approval of program matching calculations to ensure that they are accurate and agree to supporting documentation. Views of responsible officials: There is no disagreement with the finding.

Reference Number: 2025-025 Prior Year Finding: 2024-019 Federal Agency: U.S. Department of Health and Human Services State Agency: Department of Public Health Federal Program: Immunization Cooperative Agreements, COVID-19 - Immunization Cooperative Agreements Assistance Listing Number: 93.268 Award Number and Year: 6 NH23IP922629 (7/1/2019-6/30/2025) Compliance Requirement: Reporting – Federal Funding Accountability and Transparency Act (FFATA) Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance Criteria or specific requirement: Compliance: Per the Federal Funding Accountability and Transparency Act (FFATA), prime (direct) recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Reports must be filed in FSRS by the end of the month following the month in which the prime recipient awards any sub-grant greater than or equal to $30,000. If the initial award is below $30,000 but subsequent grant modifications result in a total award equal to or over $30,000, the award will be subject to the reporting requirements as of the date the award exceeds $30,000. If the initial award equals or exceeds $30,000 but funding is subsequently de-obligated such that the total award amount falls below $30,000, the award continues to be subject to FFATA reporting requirements. On March 8, 2025, FSRS.gov was retired, and all subaward reporting data and functionality transitioned to SAM.gov after that date. The following key data elements must be reported: Subawardee Name and Data Universal Numbering System (DUNS) number; Amount of Subaward (inclusive of modifications); Subaward Obligation/Action Date; Date of Report Submission; Subaward Number; Project Description; and Names and Compensation of Highly Compensated Officers. (Names and Compensation of Highly Compensated Officers must only be reported when the entity in the preceding fiscal year received 80 percent or more of its annual gross revenues in Federal awards; and $25,000,000 or more in annual gross revenues from Federal awards; and the public does not have access to this information about the compensation of the senior executives of the entity through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. §§ 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986.) Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Department of Public Health (Department) did not report subaward information in accordance with FFATA requirements. Context: Eight of eight subawards were not reported to SAM.gov until after they were selected for testing by auditors. The subawards were issued from 7/1/2024 through 3/31/2025 but were not reported until 1/22/2026 after they were selected for testing during the FY 2025 audit. SEE SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR CHART/TABLE Cause: The Department has not implemented its corrective action plan from the prior audit. It does not have sufficient procedures and internal controls to ensure that all required subawards are reported timely and accurately. Effect: Subawards were not reported to SAM.gov until after they were selected for testing by auditors. Questioned costs: None noted. Recommendation: We recommend the Department complete implementation of its corrective action plan from the prior audit. It should establish procedures and internal controls to ensure that all required subawards are reported timely and accurately to SAM.gov no later than the end of the month following the month of issuance of each subaward. Views of responsible officials: There is no disagreement with the finding.

Reference Number: 2025-026 Prior Year Finding: 2024-020 Federal Agency: U.S. Department of Health and Human Services State Agency: Department of Public Health Federal Program: Epidemiology and Laboratory Capacity for Infectious Diseases COVID-19 – Epidemiology and Laboratory Capacity for Infectious Diseases Assistance Listing Number: 93.323 Award Number and Year: 19NU50CK000518 (8/1/2022 – 7/31/2027) 24NU51CK000343 (8/1/2024 – 7/31/2025) Compliance Requirement: Reporting – Federal Funding Accountability and Transparency Act (FFATA) Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance Criteria or specific requirement: Compliance: Per the Federal Funding Accountability and Transparency Act (FFATA), prime (direct) recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Reports must be filed in FSRS by the end of the month following the month in which the prime recipient awards any sub-grant greater than or equal to $30,000. If the initial award is below $30,000 but subsequent grant modifications result in a total award equal to or over $30,000, the award will be subject to the reporting requirements as of the date the award exceeds $30,000. If the initial award equals or exceeds $30,000 but funding is subsequently de-obligated such that the total award amount falls below $30,000, the award continues to be subject to FFATA reporting requirements. On March 8, 2025, FSRS.gov was retired, and all subaward reporting data and functionality transitioned to SAM.gov after that date. The following key data elements must be reported: Subawardee Name and Data Universal Numbering System (DUNS) number; Amount of Subaward (inclusive of modifications); Subaward Obligation/Action Date; Date of Report Submission; Subaward Number; Project Description; and Names and Compensation of Highly Compensated Officers. (Names and Compensation of Highly Compensated Officers must only be reported when the entity in the preceding fiscal year received 80 percent or more of its annual gross revenues in Federal awards; and $25,000,000 or more in annual gross revenues from Federal awards; and the public does not have access to this information about the compensation of the senior executives of the entity through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. §§ 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986.) Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Department of Public Health (Department) did not report subaward information in accordance with FFATA requirements. Context: Eight of eight subawards were not reported to SAM.gov until after they were selected for testing by auditors. The subawards were issued in May 2024 but were not reported until January 2026 after they were selected for testing during the FY 2025 audit. SEE SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR CHART/TABLE Cause: The Department has not implemented its corrective action plan from the prior audit. The Department does not have sufficient procedures and internal controls to ensure that all required subawards are reported timely and accurately. Effect: Subawards were not reported to SAM.gov until after they were selected for testing by auditors. Questioned costs: None noted. Recommendation: We recommend the Department complete implementation of its corrective action plan from the prior audit. It should establish procedures and internal controls to ensure that all required subawards are reported timely and accurately to SAM.gov no later than the end of the month following the month of issuance of each subaward. Views of responsible officials: There is no disagreement with the finding.

Reference Number: 2025-027 Prior Year Finding: 2024-022 Federal Agency: U.S. Department of Health and Human Services State Agency: Department of Public Health Federal Program: Epidemiology and Laboratory Capacity for Infectious Diseases COVID-19 – Epidemiology and Laboratory Capacity for Infectious Diseases Assistance Listing Number: 93.323 Award Number and Year: 19NU50CK000518 (8/1/2022 – 7/31/2027) 24NU51CK000343 (8/1/2024 – 7/31/2025) Compliance Requirement: Subrecipient Monitoring Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance Criteria or specific requirement: Compliance: Per 2 CFR section 200.332(a) - Requirements for Pass-Through Entities states, in part, that all pass-through entities must ensure that every subaward is clearly identified to the subrecipient as a subaward and includes information at the time of the subaward and if any of these data elements change, include the changes in subsequent subaward modification. When some of this information is not available, the pass-through entity must provide the best information available to describe the Federal award and subaward. Per 2 CFR section 200.332(e) and (g), pass-through entities must monitor the activities of a subrecipient as necessary to ensure that the subrecipient complies with Federal statutes, regulations, and the terms and conditions of the subaward. The pass-through entity is responsible for monitoring the overall performance of a subrecipient to ensure that the goals and objectives of the subaward are achieved. In monitoring a subrecipient, a pass-through entity must review financial and performance reports, ensure that the subrecipient takes corrective action on all significant developments that negatively affect the subaward, issue a management decision for audit findings pertaining only to the Federal award provided to the subrecipient from the pass-through entity, resolve audit findings specifically related to the subaward, and verify that a subrecipient is audited as required by Subpart F. Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Department of Public Health (Department) did not properly monitor subrecipients and the Department omitted required federal award information from subawards. Context: Eight subawards issued to eight subrecipients were selected for testing. Specifically, we noted the following exceptions: • For eight of eight subrecipients selected for testing, the Department did not adequately monitor the subrecipients. It did not obtain a copy of the subrecipients’ annual single audit report. Therefore, the Department did not verify that the annual single audits had been conducted, nor did it issue a management decision on any audit findings. • For eight of eight subawards selected for testing, the Federal Award Identification Number (FAIN) was omitted from the subaward agreements. Cause: The Department’s procedures were not sufficient to ensure that subrecipients were properly monitored, nor that subawards included all required information. Internal controls did not detect or prevent the errors. The Department had not completed implementation of its corrective action plan from the prior year. Effect: Excluding required federal grant award information at the time of the subaward may cause subrecipients and their auditors to be uninformed about specific program and other regulations that apply to the funds they receive. There is also the potential for subrecipients to have incomplete Schedules of Expenditures of Federal Awards (SEFA) in their Single Audit reports, and federal funds may not be properly audited at the subrecipient level in accordance with the Uniform Guidance. Failure to conduct adequate subrecipient monitoring may result in a failure of the Department to detect that subawards were used for unauthorized purposes, were managed in violation of the terms and conditions of the subawards, or that subaward performance goals were not achieved. There is an increased risk that subrecipients could be inappropriately spending and/or inaccurately tracking and reporting federal funds over multiple year periods, and these discrepancies may not be properly monitored, detected, and corrected by Department personnel on a timely basis. Questioned costs: None. Recommendation: We recommend the Department complete implementation of its corrective action plan from the prior year. We recommend the Department review and enhance its internal controls and procedures to ensure subrecipient monitoring is performed in compliance with the requirements of the federal program. The Department should review and enhance internal controls and procedures to ensure that it includes all required information in the subaward agreements. Views of responsible officials: There is no disagreement with the finding.

Reference Number: 2025-028 Prior Year Finding: 2024-021 Federal Agency: U.S. Department of Health and Human Services State Agency: Department of Public Health Federal Program: Epidemiology and Laboratory Capacity for Infectious Diseases, COVID-19 - Epidemiology and Laboratory Capacity for Infectious Diseases Assistance Listing Number: 93.323 Award Number and Year: 19NU50CK000518 (8/1/2022 – 7/31/2027) 24NU51CK000343 (8/1/2024 – 7/31/2025) Compliance Requirement: Reporting Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: Compliance: Non-federal entities are required to submit Financial and Performance Measure Reports in accordance with the terms and conditions of the Federal award. Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Department of Public Health (Department) did not review and approve quarterly Core Base Grant financial reports or COVID Core Base Grant financial reports prior to submission. Context: Four quarterly reports were selected for testing, comprising of two Core Base Grant Financial Reports and two COVID Core Base Grant financial. For two of the four reports tested, there was no evidence of review and approval prior to submission. Questioned costs: Undetermined. Cause: The Department has not completed implementation of the corrective action plan from the prior audit. The Department's internal controls were not sufficient to ensure that quarterly financial reports were reviewed prior to submission. Effect: Failure to review and approve reports prior to submission could allow reporting errors to be undetected. Recommendation: We recommend the Department complete implementation of its corrective action plan from the prior audit. We recommend that the Department review and enhance its internal controls to ensure financial reports are reviewed and approved prior to submission. Views of responsible officials: There is no disagreement with the finding.

Reference Number: 2025-029 Prior Year Finding: No Federal Agency: U.S. Department of Health and Human Services State Agency: Department of Early Education and Care Federal Program: CCDF Cluster Assistance Listing Number: 93.575, 93.596 Award Number and Year: 2301MACCDF (10/1/2022 – 9/30/2025) 2301MACCDD (10/1/2022 – 9/30/2025) 2401MACCDD (10/1/2023 – 9/30/2026) 2401MACCDF (10/1/2023 – 9/30/2026) 2401MACCDM (10/1/2023 – 9/30/2026) 2501MACCDF (10/1/2024 – 9/30/2027) 2501MACCDM (10/1/2024 – 9/30/2026) Compliance Requirement: Special Tests and Provisions – Written Agreements as part of Program Integrity and Accountability Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance Criteria or specific requirement: Compliance: Lead Agencies have broad authority to administer CCDF through governmental or nongovernmental agencies and may use other public or private local agencies to implement the program, however, Lead Agencies must have written agreements with other agencies regarding administrative and implementation responsibilities undertaken by agencies other than the Lead Agency that specify the mutual roles and responsibilities of the Lead Agency and the other agencies in meeting the requirements as per 45 CFR 98.11. Additionally, Lead Agencies must serve as the single point of contact and must retain overall responsibility for the program as defined in 45 CFR section 98.11(a)(1) and (2). The Lead Agency must fulfill eight identified requirements including ensuring that the program complies with the approved Plan and all Federal requirements, monitoring programs and services, and ensuring that all State and local or non-governmental agencies through which the State administers the program, including agencies and contractors that determine individual eligibility, operate according to the rules established for the program. Control: Per 45 CFR Part 98, Child Care and Development Fund (CCDF) recipients must establish and maintain robust internal controls to ensure integrity and accountability of program funds. Recipients must implement procedures designed to investigate and recover fraudulent payments, to impose sanctions on clients or providers in response to fraud, document and verify eligibility, and promote compliance with all applicable laws and regulations. These internal control mechanisms serve to prevent misuse, mismanagement, or fraudulent activity, thereby fostering accountability and transparency in the stewardship of federal funds allocated through the CCDF program. Condition: The Department of Early Education and Care (Department) did not implement full monitoring activities of performance as outlined in the approved State Plan/Request for Response (RFR). Context: Eighteen written agreements were selected for testing and the following exceptions were noted: • For 18 of 18 written agreements the Department did not fully implement activities of performance as outlined in the approved State Plan/RFR. • For 1 of 18 written agreements, indicators or measures to assess performance were not included. Cause: The Department’s procedures were not sufficient to ensure compliance with written agreements. The Department did not issue formal contract-specific key performance indicators (KPI) during the audit period. Effect: The Department did not comply with all program requirements regarding written agreements as part of Program Integrity and Accountability. Questioned costs: Undetermined. Recommendation: We recommend the Department fully implement procedures and internal controls regarding written agreements as part of Program Integrity and Accountability. It should ensure that it fulfills the eight identified requirements including ensuring that the program complies with the approved Plan and all Federal requirements, monitoring programs and services, and ensuring that all State and local or non-governmental agencies through which the State administers the program, including agencies and contractors that determine individual eligibility, operate according to the rules established for the program. Views of responsible officials: There is no disagreement with the finding.

Reference Number: 2025-030 Prior Year Finding: 2024-031 Federal Agency: U.S. Department of Health and Human Services State Agency: Department of Early Education and Care Federal Program: CCDF Cluster Assistance Listing Number: 93.575, 93.596 Award Number and Year: 2301MACCDF (10/1/2022 – 9/30/2025) 2301MACCDD (10/1/2022 – 9/30/2025) 2401MACCDD (10/1/2023 – 9/30/2026) 2401MACCDF (10/1/2023 – 9/30/2026) 2401MACCDM (10/1/2023 – 9/30/2026) 2501MACCDF (10/1/2024 – 9/30/2027) 2501MACCDM (10/1/2024 – 9/30/2026) Compliance Requirement: Reporting – Federal Funding Accountability and Transparency Act (FFATA) Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance Criteria or specific requirement: Compliance: Per the Federal Funding Accountability and Transparency Act (FFATA), prime (direct) recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Reports must be filed in FSRS by the end of the month following the month in which the prime recipient awards any sub-grant greater than or equal to $30,000. If the initial award is below $30,000 but subsequent grant modifications result in a total award equal to or over $30,000, the award will be subject to the reporting requirements as of the date the award exceeds $30,000. If the initial award equals or exceeds $30,000 but funding is subsequently de-obligated such that the total award amount falls below $30,000, the award continues to be subject to FFATA reporting requirements. On March 8, 2025, FSRS.gov was retired, and all subaward reporting data and functionality transitioned to SAM.gov after that date. The following key data elements must be reported: Subawardee Name and Data Universal Numbering System (DUNS) number; Amount of Subaward (inclusive of modifications); Subaward Obligation/Action Date; Date of Report Submission; Subaward Number; Project Description; and Names and Compensation of Highly Compensated Officers. (Names and Compensation of Highly Compensated Officers must only be reported when the entity in the preceding fiscal year received 80 percent or more of its annual gross revenues in Federal awards; and $25,000,000 or more in annual gross revenues from Federal awards; and the public does not have access to this information about the compensation of the senior executives of the entity through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. §§ 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986.) Control: Per 45 CFR Part 98, Child Care and Development Fund (CCDF) recipients must establish and maintain robust internal controls to ensure integrity and accountability of program funds. Recipients must implement procedures designed to investigate and recover fraudulent payments, to impose sanctions on clients or providers in response to fraud, document and verify eligibility, and promote compliance with all applicable laws and regulations. These internal control mechanisms serve to prevent misuse, mismanagement, or fraudulent activity, thereby fostering accountability and transparency in the stewardship of federal funds allocated through the CCDF program. Condition: The Department of Early Education and Care (Department) did not report subaward information in accordance with FFATA requirements. Context: The Department informed auditors that no subawards were reported. Therefore, a sample was unavailable for testing. Cause: The Department does not have procedures or controls regarding subaward reporting in accordance with FFATA requirements. Auditors note that the Department’s corrective action plan from the prior audit had not yet been fully implemented in FY 2025. Effect: Subawards were not reported in accordance with FFATA requirements. Questioned costs: None noted. Recommendation: We recommend the Department complete implementation of its corrective action plan from the prior year. We recommend the Department develop procedures and internal controls to ensure that all required subawards are reported timely and accurately no later than the end of the month following the month of issuance of each subaward. Views of responsible officials: There is no disagreement with the finding.

Reference Number: 2025-031 Prior Year Finding: No Federal Agency: U.S. Department of Health and Human Services State Agency: Department of Children and Families Federal Program: Adoption Assistance Assistance Listing Number: 93.659 Award Number and Year: 2501MAADPT (10/1/2023 – 9/30/2024) 2401MAADPT (10/1/2024 – 9/30/2025) Compliance Requirement: Eligibility Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or specific requirement: Compliance: Adoption assistance subsidy payments may be paid on behalf of a child if eligibility requirements are met. Requirements include the following: (1) Categorical Eligibility - Applicable and Non-Applicable Children – An applicable child is a child for whom an adoption assistance agreement was entered into in fiscal year (FY) 2010 or later and who meets the applicable age requirement (differs over a multi fiscal year phase-in period beginning in FY 2010), or a child who has been in foster care under the responsibility of the Title IV-E agency for at least 60 consecutive months, or a sibling to either such child if both are to have the same adoption placement (42 USC 673(e)(2) and (e)(3)). (2)(f) The prospective adoptive parent(s) and any other adult living in the home who has resided in the provider home in the preceding five years must satisfactorily have met a child abuse and neglect registry check. This requirement became effective on October 1, 2006, unless the state requires legislation to implement the requirement, in which case a delayed implementation is permitted until the first quarter of the state’s regular legislative session following the close of the first regular session beginning after October 1, 2006. The requirement applies to foster care maintenance payments for calendar quarters beginning on or after that date. Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Department of Children and Families (Department) was unable to provide documentation supporting participant eligibility in the form of a signed subsidy agreement and was unable to provide documentation that child abuse and neglect registry checks were performed for out-of-state adoptive family homes. Context: Forty participants were selected for testing and the following exceptions were noted: • For 1 of 40 participants, the Department was unable to provide a copy of the original signed subsidy agreement. The legalization date was 5/17/2013 but the original signed agreement was unavailable. The child is still receiving a subsidy, and the Department was able to provide the two most recent signed subsidy renewal letters from 2022 and 2024. The subsidy renewal letter is signed by the adoptive parent confirming the child is currently residing in the home, the parent is legally responsible for the child, and the parent provides financial support for the child. The Department uses iFamilyNet as their statewide case management system. iFamilyNet includes the signed subsidy agreement date; however, we were unable to verify the accuracy of that date without a copy of the original signed subsidy agreement. • For 2 of 40 participants, the Department was unable to provide documentation that a child abuse and neglect registry check was completed as part of the application or license approvals for homes in which the adoptive parent(s) previously lived out-of-state. These homes were originally licensed in 2006 and 2013, respectively and these homes received subsidies during FY 2025. The homes are currently closed and are no longer receiving subsidies subsequent to June 30, 2025. Cause: The Department’s procedures and internal controls were not sufficient to ensure that participant eligibility documentation was maintained and that child abuse and neglect registry checks were performed. For the missing registry checks, at the time these homes were licensed, the Department did not have a formal process to request or document out of state child welfare registry checks. Effect: Claims may have been paid on behalf of an ineligible participant and children may have been placed in homes that were ineligible to participate in the program. Questioned costs: Undetermined. Recommendation: The Department should enhance its procedures and internal controls to ensure it maintains documentation of participant eligibility and child abuse and neglect registry checks, and that this documentation is readily available for audit. We also recommend the Department enhance the renewal letter to include the reaffirmation of the original subsidy agreement date by the participant. Views of responsible officials: There is no disagreement with the finding.

Reference Number: 2025-032 Prior Year Finding: No Federal Agency: U.S. Department of Health and Human Services State Agency: Executive Office of Health and Human Services Federal Program: Children’s Health Insurance Program (CHIP) Assistance Listing Number: 93.767 Award Number and Year: 2405MA5021 (10/1/2023 – 9/30/2025) 2505MA5021 (10/1/2024 – 9/30/2026) Compliance Requirement: Allowable Activities/Allowable Costs Special Tests and Provisions – Provider Eligibility (Screening and Enrollment) Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance Criteria or specific requirement: Compliance: To be allowable, Children’s Health Insurance Program (CHIP) costs must be covered by the state plan or CMS approved waivers/demonstrations. Providers receiving payments under the program must meet eligibility requirements. To receive CHIP payments, providers must: (1) be licensed in accordance with federal, state, and local laws and regulations to participate in the CHIP program (42 CFR 457.990); (2) screened and enrolled in accordance with 42 CFR Part 455, Subpart E (sections 455.400 through 455.470); and make certain disclosures to the state. CHIP-managed care network providers are subject to the same disclosure, screening, enrollment, and termination requirements that apply to Medicaid fee-for-service providers in accordance with 42 CFR Part 438, Subpart H. Providers who have been barred from participation by the OIG exclusion list are not eligible to be enrolled in the CHIP program (42 CFR 457.990, 42 CFR 455 Subpart E). Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Executive Office of Health and Human Services (the Department) did not properly document CHIP provider eligibility. Context: Sixty providers were selected for testing and the following exceptions were noted: • For 6 of 60 providers selected for testing, a revalidation letter was not provided or generated. The Department indicated that it did not have a process to generate revalidation letters for dental providers. • For 5 of 60 providers selected for testing, the Department was unable to provide documentation that a revalidation of the provider’s eligibility was performed within the required 5-year cycle for dental providers. • 3 of 60 providers selected for testing were not revalidated prior to the latest revalidation in 2024. The providers’ enrollment dates were more than 10 years prior to the 2024 revalidation date, which indicates a minimum of two revalidations were not completed for these dental providers as required. • For 3 of 60 providers selected for testing, the Department was unable to provide a copy of the provider agreement. • For 2 of 60 providers selected for testing, sanction verifications were not completed for all individuals listed on the disclosure forms. • For 1 of 60 providers selected for testing, the provider agreement was not countersigned. All of the above exceptions noted related to dental providers. Cause: The Department’s procedures were not sufficient to ensure it maintained documentation that providers were eligible to perform services under the program. Internal controls did not prevent or detect the errors. Effect: Failure to properly document provider eligibility could allow payments to be made to ineligible providers. Questioned costs: Undetermined. Due to a lack of information, auditors were unable to determine if the providers were eligible nor if ineligible costs were incurred. Recommendation: The Department should enhance its procedures and internal controls to ensure it maintains documentation that claims are paid only to eligible providers and that documentation is readily available for audit. Views of responsible officials: There is no disagreement with the finding.

Reference Number: 2025-033 Prior Year Finding: 2024-034 Federal Agency: U.S. Department of Health and Human Services State Agency: Executive Office of Health and Human Services Federal Program: Medicaid Cluster Assistance Listing Number: 93.775, 93.777, 93.778 Award Number and Year: XIX-MAP25, XIX-MAP24 Compliance Requirement: Allowable Activities/Allowable Costs Special Tests and Provisions – Provider Eligibility and Provider Health and Safety Standards Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or specific requirement: Compliance: To be allowable, Medicaid costs for medical services must be (1) covered by the state plan or CMS approved waivers/demonstrations; (2) reviewed by the state consistent with the state’s documented procedures and system for determining medical necessity of claims; (3) properly coded; and (4) paid at the rate allowed by the state plan. Furthermore, beneficiaries must be eligible (or presumptively eligible) at the time of service, whether covered under fee-for-service or managed care. Additionally, Medicaid costs must be net of beneficiary cost-sharing obligations and applicable credits (e.g., insurance, recoveries from other third parties who are responsible for covering the Medicaid costs, and drug rebates), paid to eligible providers, and only provided on behalf of eligible individuals. In order to receive Medicaid payments, providers must: (1) be licensed in accordance with federal, state, and local laws and regulations to participate in the Medicaid program (42 CFR 431.107 and 447.10; and Section 1902(a)(9) of the Act (42 USC 1396a(a)(9)); (2) screened and enrolled in accordance with 42 CFR Part 455, Subpart E (sections 455.400 through 455.470); and make certain disclosures to the state (42 CFR Part 455, Subpart B, sections 455.100 through 455.106). Medicaid managed care network providers are subject to the same disclosure, screening, enrollment, and termination requirements that apply to Medicaid fee-for-service providers in accordance with 42 CFR Part 438, Subpart H. States must also follow guidance issued in the Medicaid Provider Enrollment Compendium (MPEC) to enroll providers into their Medicaid programs. Providers must meet the prescribed health and safety standards for hospital, nursing facilities, and ICF/IID (42 CFR Part 442). The standards may be modified in the state plan. Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Executive Office of Health and Human Services (Department) did not properly perform or document provider eligibility determinations. Context: Sixty providers were selected for testing of provider eligibility and provider health and safety standards. The following exceptions were noted: • For 3 of 60 providers selected for testing, the Department was unable to provide documentation that a revalidation of the provider’s eligibility and verification of the provider’s health and safety standards was performed within the required 5-year cycle. • For 1 of 60 providers selected for testing, the Department was unable to provide a provider agreement. • For 1 of 60 providers selected for testing, the provider was not revalidated prior to the latest revalidation in 2024. The provider’s enrollment date was more than 10 years prior to the 2024 revalidation date, which indicates a minimum of two revalidations were not completed for this provider as required. • For 2 of 60 providers selected for testing, a revalidation letter was not provided or generated. The Department indicated that it did not have a process to generate revalidation letters for dental providers. All of the above exceptions noted related to dental providers. Cause: The Department’s procedures were not sufficient to ensure it maintained documentation that providers were eligible to perform services under the program and were in compliance with health and safety standards. Internal controls did not prevent or detect the errors. Effect: Failure to properly document provider eligibility and compliance with health and safety standards could allow payments to be made to ineligible providers. Questioned costs: Undetermined. Due to a lack of information, auditors were unable to determine if the providers were eligible or if ineligible costs were incurred. Recommendation: The Department should enhance its procedures and internal controls to ensure it maintains documentation that claims are paid only to eligible providers and that documentation is readily available for audit. Views of responsible officials: There is no disagreement with the finding.

Reference Number: 2025-034 Prior Year Finding: 2024-035 Federal Agency: U.S. Department of Health and Human Services State Agency: Executive Office of Health and Human Services Federal Program: Medicaid Cluster Assistance Listing Number: 93.775, 93.777, 93.778 Award Number and Year: XIX-MAP25, XIX-MAP24 Compliance Requirement: Eligibility Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or specific requirement: Compliance: States verify the financial and nonfinancial factors of eligibility, per federal requirements at 42 CFR 435.948 through 435.956 and state requirements (as documented in the state plan, verification plan, and eligibility manual). States must monitor the accuracy of eligibility determinations by establishing a Medicaid Eligibility Quality Control (MEQC) program to reduce erroneous expenditures in conjunction with the Payment Error Rate Measurement (PERM) Program. Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Executive Office of Health and Human Services (Department) was unable to provide documentation verifying participant eligibility. Context: For one of sixty participants selected for testing, support for income verification was not maintained. The Department indicated that manual income verification documentation had been dropped off at a local office but was unable to provide it to auditors for testing. Cause: The Department’s procedures were not sufficient to ensure that participant eligibility documentation was maintained. Effect: Claims were paid on behalf of an ineligible participant. Questioned costs: $38, the claim amount paid for the participant. Recommendation: The Department should enhance its procedures and internal controls to ensure it maintains documentation of participant eligibility and that this documentation is readily available for audit. Views of responsible officials: There is no disagreement with the finding.

Reference Number: 2025-035 Prior Year Finding: 2024-036 Federal Agency: U.S. Department of Health and Human Services State Agency: Department of Public Health (DPH) Federal Program: Opioid-STR Assistance Listing Number: 93.788 Award Number and Year: 1H79TI085778 (9/30/2021 – 9/29/2024) 5H79TI085778 (9/30/2022 – 9/29/2024) 6H79TI085778 (9/30/2023 – 9/30/2025) Compliance Requirement: Subrecipient Monitoring Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or specific requirement: Compliance: Per 2 CFR section 200.332(a) - Requirements for Pass-Through Entities states, in part, that all pass-through entities must ensure that every subaward is clearly identified to the subrecipient as a subaward and includes information at the time of the subaward and if any of these data elements change, include the changes in subsequent subaward modification. When some of this information is not available, the pass-through entity must provide the best information available to describe the Federal award and subaward. Per 2 CFR section 200.332(e) and (g), pass-through entities must monitor the activities of a subrecipient as necessary to ensure that the subrecipient complies with Federal statutes, regulations, and the terms and conditions of the subaward. The pass-through entity is responsible for monitoring the overall performance of a subrecipient to ensure that the goals and objectives of the subaward are achieved. In monitoring a subrecipient, a pass-through entity must review financial and performance reports, ensure that the subrecipient takes corrective action on all significant developments that negatively affect the subaward, issue a management decision for audit findings pertaining only to the Federal award provided to the subrecipient from the pass-through entity, resolve audit findings specifically related to the subaward, and verify that a subrecipient is audited as required by Subpart F. Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Department of Public Health (Department) did not properly monitor subrecipients and the Department omitted required federal award information from subawards. Context: Thirteen subawards issued to thirteen subrecipients were selected for testing. Specifically, we noted the following exceptions: • 1 of 13 subawards was missing the Federal Award Identification Number (FAIN). • For 2 of 13 subrecipients selected for testing, the Department did not adequately monitor the subrecipients. The Department did not obtain a copy of the subrecipients’ annual single audit report. Therefore, the Department did not verify that the annual single audits had been conducted, nor did it issue a management decision on audit findings. Cause: The Department had not yet fully implemented its corrective action plan from the prior year. Effect: Excluding required federal grant award information at the time of the subaward may cause subrecipients and their auditors to be uninformed about specific program requirements and other regulations that apply to the funds they receive. There is also the potential for subrecipients to have incomplete Schedules of Expenditures of Federal Awards (SEFA) in their Single Audit reports, and federal funds may not be properly audited at the subrecipient level in accordance with the Uniform Guidance. Failure to conduct adequate subrecipient monitoring may result in a failure of the Department to detect that subawards were used for unauthorized purposes, were managed in violation of the terms and conditions of the subawards, or that subaward performance goals were not achieved. There is an increased risk that subrecipients could be inappropriately spending and/or inaccurately tracking and reporting federal funds over multiple year periods, and these discrepancies may not be properly monitored, detected, and corrected by Department personnel on a timely basis. Questioned costs: None. Recommendation: We recommend the Department complete its corrective action plan from the prior year. The Department should verify that its internal controls and procedures are sufficient to ensure subrecipient monitoring is performed in compliance with the requirements of the federal program and that all required information is included in subaward agreements. Views of responsible officials: There is no disagreement with the finding.

Reference Number: 2025-036 Prior Year Finding: 2024-038 Federal Agency: U.S. Department of Homeland Security State Agency: Massachusetts Emergency Management Agency Federal Program: Disaster Grants – Public Assistance (Presidentially Declared Disasters), COVID-19 - Disaster Grants – Public Assistance (Presidentially Declared Disasters) Assistance Listing Number: 97.036 Award Number and Year: FEMA-4496-DR (2020) FEMA-4651-DR (2022) Compliance Requirement: Reporting – Federal Funding Accountability and Transparency Act (FFATA) Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance Criteria or specific requirement: Compliance: Per the Federal Funding Accountability and Transparency Act (FFATA), prime (direct) recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Reports must be filed in FSRS by the end of the month following the month in which the prime recipient awards any sub-grant greater than or equal to $30,000. If the initial award is below $30,000 but subsequent grant modifications result in a total award equal to or over $30,000, the award will be subject to the reporting requirements as of the date the award exceeds $30,000. If the initial award equals or exceeds $30,000 but funding is subsequently de-obligated such that the total award amount falls below $30,000, the award continues to be subject to FFATA reporting requirements. On March 8, 2025, FSRS.gov was retired, and all subaward reporting data and functionality transitioned to SAM.gov after that date. The following key data elements must be reported: Subawardee Name and Data Universal Numbering System (DUNS) number; Amount of Subaward (inclusive of modifications); Subaward Obligation/Action Date; Date of Report Submission; Subaward Number; Project Description; and Names and Compensation of Highly Compensated Officers. (Names and Compensation of Highly Compensated Officers must only be reported when the entity in the preceding fiscal year received 80 percent or more of its annual gross revenues in Federal awards; and $25,000,000 or more in annual gross revenues from Federal awards; and the public does not have access to this information about the compensation of the senior executives of the entity through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. §§ 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986.) Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The Massachusetts Emergency Management Agency (Department) did not report subawards timely or accurately in accordance with FFATA requirements. Context: Seventeen of the twenty-six subawards selected for testing were not reported timely or accurately. The following exceptions were noted: • 11 of 26 subawards, totaling $29,413,324, were not reported timely. The reports were submitted from seven days to four months late. • 4 of 26 subawards, totaling $3,354,238, were not reported to FSRS. 2 subaward amendments related to de-obligations were not reported. The total of the amendments was a reduction of $169,193. SEE SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR CHART/TABLE Cause: The Department’s procedures and controls were not sufficient to ensure that subawards were reported timely and accurately. The Department had not completed implementation of its corrective action plan from the prior year. Effect: Subawards were not reported in accordance with FFATA requirements. Questioned costs: None noted. Recommendation: We recommend the Department complete implementation of its corrective action plan from the prior year. The Department should review and enhance its procedures and internal controls to ensure that all required subawards are reported timely and accurately to SAM.gov no later than the end of the month following the month of issuance of each subaward. Views of responsible officials: There is no disagreement with the finding.