Corrective Action Plans

Finding 1186589 (2025-001)

Material Weakness 2025

AK

Subrecipient Monitoring Allowable Costs / Cost Principles HUD Housing Programs

Federal Single Audit Finding: 2025-001 Reporting - Significant Deficiency in Internal Control over Compliance Name of Contact Person: Adrienne Gaines, Executive Director Corrective Action: WISH will reinforce existing policies requiring documented evidence of review and approval for all key reports....

Federal Single Audit Finding: 2025-001 Reporting - Significant Deficiency in Internal Control over Compliance Name of Contact Person: Adrienne Gaines, Executive Director Corrective Action: WISH will reinforce existing policies requiring documented evidence of review and approval for all key reports. These controls will ensure approval via physical signature or electronic approval via email correspondence of each key report. Periodic monitoring will be performed to ensure compliance with documentation requirements. Proposed Completion Date: June 30, 2026

View Audit 394292

Finding 1182960 (2025-306)

Material Weakness 2025

State of Wisconsin

WI

Allowable Costs / Cost Principles Procurement, Suspension & Debarment Cash Management § 200.403 § 200.406

Department staff has reviewed the Legislative Audit Bureau’s (LAB) interim audit memo for Finding 2025-306: Children’s Health Insurance Program – Reconciliation of Vaccine Purchases. This is the department’s Corrective Action Plan.  Recommendation (2025-306): Children’s Health Insurance Program – R...

Department staff has reviewed the Legislative Audit Bureau’s (LAB) interim audit memo for Finding 2025-306: Children’s Health Insurance Program – Reconciliation of Vaccine Purchases. This is the department’s Corrective Action Plan.  Recommendation (2025-306): Children’s Health Insurance Program – Reconciliation of Vaccine Purchases We recommend the Wisconsin Department of Health Services comply with federal regulations and ensure it performs annual reconciliations to calculate any differences between the estimated cost and the actual cost of vaccines for SCHIP participants and then adjusts the estimate for vaccine purchases funded from the Children’s Health Insurance Program (CHIP). Wisconsin Department of Health Services Planned Corrective Action: The Division of Enterprise Services and the Division of Public Health worked together to complete the reconciliation and adjust the estimate for FFY 2026. However, this work was done after the end of the audit period. This work effectively returned the $2.6 million in unallowable costs included in the memo to the federal government. The divisions will continue to work together to perform an annual reconciliation and adjust the estimate going forward. Anticipated Completion Date: September 1, 2026 Persons responsible for corrective action Becky Mogensen, Section Chief Managerial Accounting Section, Bureau of Fiscal Services, Division of Enterprise Services rebeccaj.mogensen@dhs.wisconsin.gov Elizabeth Brotheridge, Section Manager Communicable Disease Administration Section, Bureau of Communicable Diseases, Division of Public Health elizabeth.brotheridge@dhs.wisconsin.gov

View Audit 394279

Finding 1182930 (2025-045)

Material Weakness 2025

State of South Carolina

SC

Allowable Costs / Cost Principles Subrecipient Monitoring § 200.303

Department of Public Health respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings numbered consistently with the numbers a...

Department of Public Health respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT Department of Health and Human Services [2025-045] (Activities Allowed or Unallowed and Allowable Costs/Cost Principles) Centers for Disease Control and Prevention Collaboration with Academia to Strengthen Public Health Assistance Listings: 93.967 Disposition of Audit Finding: The Department of Public Health concurs with the audit finding. Corrective Action: In this case, 1 of 70 transactions tested did not contain a supervisory review and approval of a journal entry. The agency has implemented additional procedures to ensure that all applicable documents receive the required second-level review and signature prior to final processing. These processes include reinforcing review requirements with staff and incorporating additional verification steps to confirm that a second signature is obtained and documented. The agency will continue to monitor this control to ensure compliance going forward. Anticipated Completion Date: June 30, 2026 The contact person responsible for corrective action: . Katie Tillman, Director, Grant Compliance at 803-898-4103

View Audit 394274

Finding 1182920 (2025-038)

Material Weakness 2025

State of South Carolina

SC

Allowable Costs / Cost Principles Subrecipient Monitoring § 200.302 § 200.303

Department of Public Health respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings numbered consistently with the numbers a...

Department of Public Health respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT Department of the Treasury [2025-038] (Activities Allowed or Unallowed and Allowable Costs/Cost Principles) Coronavirus State and Local Fiscal Recovery Funds Assistance Listing: 21.027 Disposition of Audit Finding: The Department of Public Health concurs with the audit finding. Corrective Action: Although significant progress has been made and the invoice in question was short-paid for unallowable charges, there was a mistake in a formula calculation which caused the contractor to be underpaid by $313. We will continue with our strengthened review process and verify the documentation as well as the formulas in the spreadsheet prior to reimbursement. Anticipated Completion Date: June 30, 2026 The contact persons responsible for corrective action: . Trey Reed, Director, Bureau of Business Management at 803-898- 3522 . Marshall Rock, Director, Facilities, Bureau of Business Management 803-898-3510

View Audit 394274

Finding 1182917 (2025-036)

Material Weakness 2025

State of South Carolina

SC

Allowable Costs / Cost Principles Subrecipient Monitoring § 200.303 § 200.405

The Office of Resilience respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The finding from the schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the numbers assi...

The Office of Resilience respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The finding from the schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT U.S. Department of Housing and Urban Development 2025-036 Community Development Block Grant – Assistance Listing No. 14.228 Disposition of Audit Finding: The Office of Resilience does not agree this item rises to the level of a finding and could be sufficiently addressed with a recommendation. SCOR acknowledges this process could be improved and will act to better support this transaction going forward. Corrective Action: To provide additional support and clarification on the use of cost allocation percentages, SCOR Finance will create a memo to file each time the cost allocation changes. The current methodology is based on headcount and is subject to change frequently. At the beginning of each quarter, SCOR Finance will recalculate the cost allocation percentage based on agency headcount on the last day of the previous quarter. The quarterly updated allocation percentages will be the basis of allocating agency wide shared costs. A copy of the memo will be attached to the SCEIS payable document as support. Anticipated Completion Date: Immediately. SCOR Finance will go back to the beginning of FY26, recalculate the cost allocation percentages, create the memo to file and post correcting journal entries as needed. Names of the contact persons responsible for corrective action: • Andrew DeRienzo - CFO at 803-422-0092 • Sarah Reynolds – Accounting Manager at 803-896-0038 • Tiffany Frye -Budget Manager at 803-896-6704

View Audit 394274

Finding 1182901 (2025-030)

Material Weakness 2025

State of South Carolina

SC

Allowable Costs / Cost Principles Subrecipient Monitoring § 200.303

The South Carolina Department of Social Services (SCDSS) respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbere...

The South Carolina Department of Social Services (SCDSS) respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT U.S. Department of Health and Human Services Refugee and Entrant Assistance – Assistance Listing No. 93.566 Disposition of Audit Finding: The SCDSS concurs with the audit finding. Corrective Action: SCDSS now has direct access to SCDHHS’s Curam eligibility system, enabling the agency to review individuals categorized under Refugee Medical Assistance (RMA) and ensure they do not remain in the category beyond the federally mandated four-month eligibility period. This access allows SCDSS to verify that no program expenditures are issued for individuals who exceed the allowable timeframe. SCDSS also receives a monthly detailed expense report and invoice from both RSS and RMA subrecipients, which provide documentation sufficient to validate that all expenditures are appropriate and properly attributable to individuals eligible. This report will be used to reconcile payments and confirm alignment between eligibility records and financial activity. Anticipated Completion Date: July 1, 2026 Names of the contact persons responsible for corrective action: • Ambrea Jones, State Refugee Coordinator at 803-898-7303 • Brittney White, State Refugee Health Coordinator at 803-898-7545

View Audit 394274

Finding 1182894 (2025-023)

Material Weakness 2025

State of South Carolina

SC

Allowable Costs / Cost Principles Subrecipient Monitoring § 200.303

The South Carolina Department of Social Services (SCDSS) respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbere...

The South Carolina Department of Social Services (SCDSS) respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT U.S. Department of Health and Human Services 2025-023 Adoption Assistance – Assistance Listing No. 93.659 Disposition of Audit Finding: The SCDSS concurs with the audit finding. Corrective Action: The Department’s internal controls require the monthly batch reports to be uploaded with all payment documents. During the audit, four payment documents were identified that did not have the required supporting documentation attached. Department staff have retrieved the necessary backup for the four payments and have uploaded the required documentation to the accounting system. Anticipated Completion Date: Completed Names of the contact persons responsible for corrective action: • Courtney Hogue, Controller at 803-898-7488

View Audit 394274

Finding 1182891 (2025-020)

Material Weakness 2025

State of South Carolina

SC

Allowable Costs / Cost Principles Subrecipient Monitoring § 200.303 § 200.404 § 200.430

The Department of Environmental Services respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The finding from the schedule of findings and questioned costs is discussed below. The finding is numbered consistently with ...

The Department of Environmental Services respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The finding from the schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT U.S. Environmental Protection Agency Performance Partnership Grants – Assistance Listing No. 66.605 Disposition of Audit Finding: The Department of Environmental Services agrees with the audit finding. Corrective Action: According to (g),(vii),(B) Significant changes in the related work activity (as defined by the recipient's or subrecipient's written policies) are promptly identified and entered into the records. Short-term (such as one or two months) fluctuations between workload categories do not need to be considered as long as the distribution of salaries and wages is reasonable over the longer term; Many DES staff will work on multiple grants, and effort between grants may change from week to week. Reviewing the effort compared to amounts charged to a Federal grant for a single pay period may not be an accurate reflection of what the DES employees work over the life of that grant award. Reconciliations between payroll and effort occur over the life of the grant to ensure that all charges applied are reasonable and support the overall goal of the project on the longer term. To support this effort, budget staff will perform more periodic reviews of effort as compared to funding to identify situations where the difference between payroll and effort recorded are not on track to support the overall charges to a federal award. Anticipated Completion Date: Processed started July 1, 2025 and will ongoing. Simon Li will be responsible for corrective action: • Simon Li at 803-898-3443

View Audit 394274

Finding 1182888 (2025-017)

Material Weakness 2025

State of South Carolina

SC

Allowable Costs / Cost Principles Subrecipient Monitoring § 200.303 § 200.430

The South Carolina Department of Environmental Services (SCDES) respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are ...

The South Carolina Department of Environmental Services (SCDES) respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT U.S. Environmental Protection Agency 2025-017 Drinking Water – Assistance Listing No. 66.468 Disposition of Audit Finding: The SCDES concurs with the audit finding. Corrective Action: According to (g),(vii),(B) Significant changes in the related work activity (as defined by the recipient's or subrecipient's written policies) are promptly identified and entered into the records. Short-term (such as one or two months) fluctuations between workload categories do not need to be considered as long as the distribution of salaries and wages is reasonable over the longer term; Many DES staff will work on multiple grants, and effort between grants may change from week to week. Reviewing the effort compared to amounts charged to a Federal grant for a single pay period may not be an accurate reflection of what the DES employees work over the life of that grant award. Reconciliations between payroll and effort occur over the life of the grant to ensure that all charges applied are reasonable and support the overall goal of the project on the longer term. To support this effort, budget staff will perform more periodic reviews of effort as compared to funding to identify situations where the difference between payroll and effort recorded are not on track to support the overall charges to a federal award. Anticipated Completion Date: Will have to be ongoing Budget and Program staff will be responsible for the corrective action plan. Simon Li 803-898-3443

View Audit 394274

Finding 1182887 (2025-016)

Material Weakness 2025

State of South Carolina

SC

Subrecipient Monitoring Period of Performance Allowable Costs / Cost Principles § 200.303

Criminal Justice Academy respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers ...

Criminal Justice Academy respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT Department of Transportation State and Community Highway Safety & National Priority Safety Programs – Assistance Listing No. 20.600 & 20.616 Disposition of Audit Finding: The South Carolina Criminal Justice Academy (SCCJA) concurs with the audit finding. Corrective Action: Agency policy was previously amended to ensure adequate internal controls. Additional staff training has been conducted to ensure full understanding of the policy changes to prevent future errors. Anticipated Completion Date: 10/30/2025 Name of the contact person responsible for corrective action: • Lauren Wright at (803) 896-8115

View Audit 394274

Finding 1182885 (2025-015)

Material Weakness 2025

State of South Carolina

SC

Allowable Costs / Cost Principles Subrecipient Monitoring § 200.303

Criminal Justice Academy respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers ...

Criminal Justice Academy respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT Department of Transportation 2025-015 State and Community Highway Safety & National Priority Safety Programs – Assistance Listing No. 20.600 & 20.616 Disposition of Audit Finding: The South Carolina Criminal Justice Academy (SCCJA) concurs with the audit finding. Corrective Action: Agency policy was previously amended to ensure adequate internal controls. Additional staff training has been conducted to ensure full understanding of the policy changes to prevent future errors. Anticipated Completion Date: 10/30/2025 Name of the contact person responsible for corrective action: • Lauren Wright at (803) 896-8115

View Audit 394274

Finding 1182861 (2025-008)

Material Weakness 2025

State of South Carolina

SC

Subrecipient Monitoring Period of Performance Allowable Costs / Cost Principles § 200.303 § 200.403

The South Carolina Office of the Adjutant General respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consi...

The South Carolina Office of the Adjutant General respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Findings — FEDERAL AWARD PROGRAM AUDIT U.S. Department of Defense National Guard Military Operations and Maintenance (O&M) Projects – Assistance Listing No. 12.401 Disposition of Audit Finding: The Office of the Adjutant General concurs with the audit finding. The $2,571 finding was identified by the Agency prior to the audit. The Agency was only able make corrections to the grants which remained open (total of $1,421). The Agency was unable to make corrections for the remaining amount as those grants had been closed. Corrective Action: The Agency relies on SCEIS workflow approvals to verify and approve the period of performance. The Agency currently has three or four levels of approvals (depending on the specific grant) for each Shopping Cart. During this process, the Shopping Carts are reviewed and approved/disapproved by the Cooperative Agreement budget analyst, the Grants Department, the Procurement Department and the Budget & Finance Department. Annual reminders are sent to each Cooperative Agreement and email verification of disbursements are filed. Additional quarterly quality control checks will be added to the process. Anticipated Completion Date: 6/30/2026 Name of the contact person responsible for corrective action: Anita Ballington at 803-299-4294

View Audit 394274

Finding 1182860 (2025-007)

Material Weakness 2025

State of South Carolina

SC

Subrecipient Monitoring Cash Management Allowable Costs / Cost Principles § 200.303

The South Carolina Office of the Adjutant General respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consi...

The South Carolina Office of the Adjutant General respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Findings — FEDERAL AWARD PROGRAM AUDIT U.S. Department of Defense National Guard Military Operations and Maintenance (O&M) Projects – Assistance Listing No. 12.401 Disposition of Audit Finding: The Office of the Adjutant General non-concurs with the audit finding. 1. The cited Regulation (National Guard Regulation 5-1) was changed from a Regulation to a policy guideline in 2020 by the National Guard Bureau (NGB) Grants and Cooperative Agreements Policy Letter (GCAPL) #20-02 dated 04 February 2020. 2. There is not a risk for interest liability to the State. The basis and thresholds for determining if a program is subject to interest payments is defined in Federal Code 31 CFR Part 205 and Treasury Financial Manual (TFM) 4A-2000, “Overall Disbursing Rules for All Federal Agencies.” In addition, the Cash Management Improvement Act Agreement (CIMA) between The State of South Carolina and The Secretary of the Treasury, United States Department of the Treasury, dated 6/30/2025, does not list the Agency’s Catalogue of Federal Domestic Assistance (CFDA) 12.401 as one of the State’s programs that meets or exceeds the State’s threshold for major Federal assistance programs. 3. The Cash Management testing used a one-to-one analysis based on monthly cash advance requests and monthly expenditures during the same time period. However, the testing, based on NGB Policy 5-1, should be from the date of receipt to the date of disbursement. 4. Lastly, the State of South Carolina’s Department of Administration does not allow submissions for Capital Projects (projects over $250,000) without the funding in possession of the requesting Agency. In addition, neither the Legislative Joint Bond Review Committee (JBRC) nor the State Fiscal Accountability Authority (SFAA) will approve a Capital Project without the Agency having the required funds on-hand. The average Readiness Center Revitalization (Capital Project) can take 2-3 years to complete, and the total funds have to be on-hand to receive approval for the start of the projects. This requires Cooperative Agreement 1001 to advance funding for projects months ahead of the execution of any Purchase Orders. Corrective Action: The Agency will continue to strive to minimize the time elapsed between transfer of funds from the United States Treasury and their disbursement by the State in accordance with the annual Request for Advance Payment Method Authorization signed between the State/Agency and the United States Property and Fiscal Officer (USPFO). Anticipated Completion Date: Current Name of the contact person responsible for corrective action: Anita Ballington at 803-299-4294

View Audit 394274

Finding 1182859 (2025-006)

Material Weakness 2025

State of South Carolina

SC

Allowable Costs / Cost Principles Subrecipient Monitoring Matching / Level of Effort / Earmarking § 200.303

The South Carolina Office of the Adjutant General respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consi...

The South Carolina Office of the Adjutant General respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Findings — FEDERAL AWARD PROGRAM AUDIT U.S. Department of Defense National Guard Military Operations and Maintenance (O&M) Projects – Assistance Listing No. 12.401 Disposition of Audit Finding: The Office of the Adjutant General concurs with the audit finding. Corrective Action: The Agency will continue to monitor reports and ensure each Cooperative Agreement adheres to the established Chart of Accounts. The Agency will continue to review purchase submissions in the SCEIS system for adherence to Cooperative Agreement matching requirements. Anticipated Completion Date: 10/01/2026 Name of the contact person responsible for corrective action: Anita Ballington at 803-229-4294

View Audit 394274

Finding 1182858 (2025-005)

Material Weakness 2025

State of South Carolina

SC

Allowable Costs / Cost Principles Subrecipient Monitoring § 200.303 § 200.430

The South Carolina Office of the Adjutant General respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consi...

The South Carolina Office of the Adjutant General respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Findings — FEDERAL AWARD PROGRAM AUDIT U.S. Department of Defense National Guard Military Operations and Maintenance (O&M) Projects – Assistance Listing No. 12.401 Disposition of Audit Finding: The Office of the Adjutant General concurs with the audit finding. Corrective Action: The Agency has added additional quality control measures within the approval process, is hiring an additional staff member who will be responsible for auditing personnel actions and personnel files, and has implemented monthly audits in addition to the current standard of annual audits. Anticipated Completion Date: 6/30/2026 Name of the contact person responsible for corrective action: Robert Faulk at 803-299-4337

View Audit 394274

Finding 1182855 (2025-003)

Material Weakness 2025

State of South Carolina

SC

Subrecipient Monitoring Period of Performance Allowable Costs / Cost Principles § 200.303 § 200.403

The South Carolina Office of the Adjutant General respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consi...

The South Carolina Office of the Adjutant General respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Findings — FEDERAL AWARD PROGRAM AUDIT United States Department of Homeland Security 2025-003 Public Assistance (Presidentially Declared Disasters) - Assistance Listing No. 97.036 Disposition of Audit Finding: The South Carolina Emergency Management Division (SCEMD) of the Office of the Adjutant General concurs with the audit finding. Corrective Action: The Agency will refine its Public Assistance (PA) Reimbursement Review SOP and related Recovery Grants and Finance staff training to specify a requirement to validate that for projects under PA grants declared in 2018 and before, Direct Administrative Costs (DAC) were expended before the end of the project period of performance. In addition, the Recipient has submitted a time extension for the project period of performance but does not yet have approval from FEMA. Notes: • DAC was an eligible category of costs in PA projects under disaster grants through 2017 and optional for those declared August 1, 2017, through October 04, 2018 (opt-in). • Federal PA policy shifted to a management costs approach for projects under incidents declared on or after October 05, 2018. See attached FEMA Recovery Policy FP 104-11-2. Management costs are eligible for reimbursement up to 180 days after the subrecipient completes its last non-management cost project (p. 5). • Guidance regarding Direct Administrative Costs (see FEMA table attached) indicates that project closeout activities are eligible direct costs,which may have led to the Recipient considering DAC during the closeout period as eligible even when the project period of performance had ended. • The Federal Agency involved, FEMA, closed the project without noting an issue with reimbursement of these expenditures. Anticipated Completion Date: June 30, 2026 2 Name of the contact person responsible for corrective action: • Emily Bentley, SCEMD Chief of Mitigation and Recovery, at (803) 737-8774 • Antonio Johnson, SCEMD Grants and Finance Manager, at (803) 737-8606

View Audit 394274

Finding 1182849 (2025-001)

Material Weakness 2025

Long Beach City School District

NY

Allowable Costs / Cost Principles Significant Deficiency Matching / Level of Effort / Earmarking § 200.430

Significant Deficiencies 2024-001. Allowable Costs/Cost Principles United States Department of Education, Passed Through New York State, Department of Education: Special Education Cluster Special Education Grants to States: IDEA Part B ALN: 84.027 Special Education Preschool Grants: IDEA Preschool A...

Significant Deficiencies 2024-001. Allowable Costs/Cost Principles United States Department of Education, Passed Through New York State, Department of Education: Special Education Cluster Special Education Grants to States: IDEA Part B ALN: 84.027 Special Education Preschool Grants: IDEA Preschool ALN: 84.173 Condition: Subpart E, 2 CFR §200.430 of the Uniform Guidance requires that charges to “Federal awards for salaries and wages must be based on records that accurately reflect the work performed.” The documentation should support the distribution of the employee’s compensation among specific activities if the employee works on more than one federal award, or a federal award and non-federal award. The preparation of personnel activity reports (PAR) or periodic certifications or the equivalent is the most effective way to comply with this requirement. During the current year, the District did not prepare this documentation, and, therefore, did not comply with Subpart E, 2 CFR §200.430. Current Status: The District has not implemented revised procedures to document after-the-fact personnel activity records for salaries and wages charged to federal awards, as required by 2 C.F.R. § 200.430. Planned Corrective Action: The District will adopt procedures that ensure that time performed will be used to support costs charged to the federal award, and comply with Subpart E, 2 CFR §200.430. Responsible Contact Person: Michael I. DeVito, Esq., Assistant Superintendent for Finance and Operations. Long Beach City School District 235 Lido Boulevard Lido Beach, New York 11561 mdevito@lbeach.org 516-897-2090 Anticipated Completion Date: June 30, 2026.

View Audit 394256

Finding 1182841 (2025-019)

Material Weakness 2025

State of Vermont

VT

Special Tests & Provisions Subrecipient Monitoring Allowable Costs / Cost Principles

Reference Number: 2025-019 Prior Year Finding: 2024-020 Federal Agency: U.S. Department of Health and Human Services State Agency: Agency of Human Services Federal Program: CCDF Cluster Assistance Listing Number: 93.575, 93.596 Award Number and Year: 2401VTCCDD (10/1/2023 – 9/30/2026) 2501VTCCDD (10...

Reference Number: 2025-019 Prior Year Finding: 2024-020 Federal Agency: U.S. Department of Health and Human Services State Agency: Agency of Human Services Federal Program: CCDF Cluster Assistance Listing Number: 93.575, 93.596 Award Number and Year: 2401VTCCDD (10/1/2023 – 9/30/2026) 2501VTCCDD (10/1/2024 – 9/30/2027) Compliance Requirement: Special Tests and Provisions – Health and Safety Requirements Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance Recommendation: We recommend that the Agency review and enhance training monitoring procedures and controls to ensure that all child care providers complete required health and safety training. The Agency should update its training content to include all required elements and ensure that provider corrective action plans and documentation are properly maintained. Site visit documentation should clearly indicate the results of training requirement monitoring. Views of responsible officials: Management agrees with the finding. Corrective Action Plan: DCF-CDD continues their rule revision process and now has the added support of a project manager and legal counsel. The revision process has been rigorous, and the rules have undergone several drafts. The public has had another opportunity to provide feedback on the latest draft prior to the formal promulgation process. Additionally, CDD received technical assistance from our federal partners to ensure our rule revisions met all CCDF requirements and will continue to refer to this document as we move the rules towards promulgation. The proposed rules will address the findings documented in this audit related to the federal requirement that pre-service orientation includes the required eleven (11) healthy and safety topics which staff will be required to complete, “before being left alone with children, counted in staff to child ratios, or within one (1) month of starting employment, whichever comes first.” DCF-CDD submitted an RFP for a new pre-service orientation training to include all the required health and safety topics that must be covered within the first month of employment. CDD will continue to work with the apparent successful bidder to ensure these modules are available to the field in 2026. DCF-CDD licensing unit will review the results of the single audit with licensing staff and our partners at Northern Lights at CCV (NL). CDD will begin a shift in our site visit preparation process that includes NL providing the division with a complete list of staff who have and who have not completed the required number of annual training hours. CDD licensing will document deficiencies in site visit reports and will require a plan from the providers to come into compliance. Scheduled Completion Date of Corrective Action Plan: DCF-CDD anticipates the licensing rules will be submitted to ICAR on February 20, 2026. This date may need to shift dependent on legal counsel’s final review of the rules and the weeks needed to prepare the documents required at this stage in the promulgation. CDD will be provided with a promulgation timeline which we aim to have completed before the end of 2026. DCF-CDD will seek outside contractual support to develop guidance manuals and training for the field on the rule changes, which includes shifts in required pre-service orientation topics. DCF-CDD pre-service orientation modules are scheduled to be completed within six (6)-nine (9) months from when the contract has been signed between the SOV and the apparent successful bidder. DCF-CDD will implement the site visit preparation practice shift by April-May 2026. This work requires NL staff to shift job responsibilities to accommodate the ongoing training review of the staff for all providers. By January 26, 2026, CDD director of child care licensing will meet with the licensing supervisors to review the results of this audit, review the CAP, and establish a plan for supervisory oversight at it relates to licensors documenting training deficiencies when conducting site visits. By January 27, 2026, CDD director of child care licensing will meet with the licensing unit to review the results of this audit, review the CAP, discuss the shift in site visit preparation practice as we partner with NL who will be reviewing compliance with annual training hours, and discuss the expectations around how deficiencies must be documented in annual site visit reports. Contacts for Corrective Action Plan: Beth Maurer, Director of Child Care Licensing, elizabeth.maurer@vermont.gov Kelly Lyford, Licensing Supervisor, kelly.lyford@vermont.gov Janet McLaughlin, CDD Deputy Commissioner, janet.mclaughlin@vermont.gov Dawn Rouse, Director of Statewide Systems, dawn.rouse@vermont.gov Peter Moino, AHS Director of Internal Audit, peter.moino@vermont.gov

View Audit 394235

Finding 1182828 (2025-009)

Material Weakness 2025

State of Vermont

VT

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.303 § 200.403

Reference Number: 2025-009 Prior Year Finding: 2024-009; 2023-007 and 2022-016 Federal Agency: U.S. Department of Labor State Agency: Vermont Department of Labor Federal Program: Unemployment Insurance Assistance Listing Number: 17.225 Award Number and Period: 25A55UI000119 (10/1/2024 – 12/31/2027) ...

Reference Number: 2025-009 Prior Year Finding: 2024-009; 2023-007 and 2022-016 Federal Agency: U.S. Department of Labor State Agency: Vermont Department of Labor Federal Program: Unemployment Insurance Assistance Listing Number: 17.225 Award Number and Period: 25A55UI000119 (10/1/2024 – 12/31/2027) UI370952155A50 (9/1/2021 – 5/22/2025) 23A60UB000019 (8/3/2023 – 5/22/2025) 24A60UD000052 (8/20/2024 – 8/20/2027) Compliance Requirement: Allowable Costs/Cost Principles Type of Finding: Significant Deficiency in Internal Control over Compliance Recommendation: We recommend the Department review and enhance its procedures and controls regarding payment processing to ensure that, prior to charging costs to the program, they are reviewed by a supervisor who is knowledgeable of the regulations regarding allowable program costs and that documentation of the review is maintained. Views of responsible officials: Management agrees with the finding. Corrective Acton Plan: The Department has reviewed its procedures and internal controls, and we believe that they adequately require oversight and signoff of all expenditures to ensure that expenditures are adequately reviewed and signed off on. However, there is currently no double check to ensure that the accounting clerks are following these procedures. Department will be adding a secondary check to the procedure to occur at the end of each month to review expenditures for proper coding (cost center, project code and function code) as well as responsible party signoff. Scheduled Completion Date of Corrective Action Plan: May15, 2026 Contacts for Corrective Action Plan: Kristine Murphy, Director, Unemployment Insurance, kristine.murphy@vermont.gov Chad Wawrzyniak, Chief Financial Officer, chad.wawrzyniak@vermont.gov

View Audit 394235

Finding 1182826 (2025-007)

Material Weakness 2025

State of Vermont

VT

Allowable Costs / Cost Principles Period of Performance Subrecipient Monitoring § 200.303 § 200.308 § 200.309 § 200.403

Reference Number: 2025-007 Prior Year Finding: 2024-010; 2023-008: and 2022-017 Federal Agency: U.S. Department of Labor State Agency: Vermont Department of Labor Federal Program: Unemployment Insurance Assistance Listing Number: 17.225 Award Number and Period: 25A55UI000119 (10/1/2024 – 12/31/2027)...

Reference Number: 2025-007 Prior Year Finding: 2024-010; 2023-008: and 2022-017 Federal Agency: U.S. Department of Labor State Agency: Vermont Department of Labor Federal Program: Unemployment Insurance Assistance Listing Number: 17.225 Award Number and Period: 25A55UI000119 (10/1/2024 – 12/31/2027) Compliance Requirement: Period of Performance Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance Recommendation: We recommend the Department review and enhance its procedures and controls to ensure that, prior to charging costs to the program, they are incurred within an award’s allowable period of performance and that payments are reviewed and approved by a supervisor who has knowledge of costs that are allowable under the program. Views of responsible officials: Management agrees with the finding. Corrective Acton Plan: The Department will review its procedures and internal controls and update as necessary to ensure that all expenditures incurred on an award fall within the allowable period of performance. Scheduled Completion Date of Corrective Action Plan: June 30, 2026 Contacts for Corrective Action Plan: Chad Wawrzyniak, Chief Financial Officer, chad.wawrzyniak@vermont.gov

View Audit 394235

Finding 1182817 (2025-007)

Material Weakness 2025

Circle of Nations School INC

ND

Allowable Costs / Cost Principles § 200.430

Allowable Costs/Activities Allowed or Unallowed Federal Financial Assistance Listing 15.042 Indian School Equalization Significant Deficiency in Internal Control over Compliance and Immaterial Instances of Noncompliance Findings Summary: During the course of the engagement, Eide Bailly LLP identifie...

Allowable Costs/Activities Allowed or Unallowed Federal Financial Assistance Listing 15.042 Indian School Equalization Significant Deficiency in Internal Control over Compliance and Immaterial Instances of Noncompliance Findings Summary: During the course of the engagement, Eide Bailly LLP identified an expenditure where payroll benefits were not paid in accordance with the employment letter. Responsible Individuals: Trevor Gourneau, Superintendent Corrective Action Plan: The School will review internal controls surrounding allowable costs and activities to exsure they are adequate to identify unallowable expenditures. Anticipated Completion Date: June 30, 2026

View Audit 394228

Finding 1182788 (2025-001)

Material Weakness 2025

Town of Longmeadow

MA

Internal Control / Segregation of Duties Subrecipient Monitoring Allowable Costs / Cost Principles § 200.308 § 200.309 § 200.403

Audit Finding Reference: 2025-001 Improve Oversight Over Period of Performance of Federal Awards Planned Corrective Action: To address the material weakness regarding the period of performance, the Longmeadow Public Schools will implement the following actions: Procedure Revision: The Longmeadow Pub...

Audit Finding Reference: 2025-001 Improve Oversight Over Period of Performance of Federal Awards Planned Corrective Action: To address the material weakness regarding the period of performance, the Longmeadow Public Schools will implement the following actions: Procedure Revision: The Longmeadow Public Schools will update internal control procedures to require that all invoices charged to federal grants explicitly state the dates of service. Staff pro-cessing invoices against Federal grant funds will be instructed to verify these dates against the au-thorized period of performance listed on the Grant Award Notification before processing payment. Staff Training: The Town will conduct mandatory training for the Special Education Department and central office administrative support staff. This training will focus on 2 CFR §200.309, specif-ically emphasizing that costs are only allowable if incurred during the approved budget period, re-gardless of when the invoice is received or paid. Name of Contact Person: Thomas Mazza, Assistant Superintendent for Finance and Operations, Longmeadow Public Schools, tmazza@longmeadow.k12.ma.us Completion Date: Prior to July 1, 2026

View Audit 394167

Finding 1182675 (2025-008)

Material Weakness 2025

School City of East Chicago

IN

Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles Equipment & Real Property Management § 200.1 § 200.302 § 200.303 § 200.305 § 200.313

FINDING 2025-008 Finding Subject: COVID-19 - Education Stabilization Fund – Condition of Records Federal Agency: Department of Education Audit Findings: Material Weakness, Modified Opinion Contact Person Responsible for Corrective Action: Lela Simmons, CFO Contact Phone Number and Email Address: 219...

FINDING 2025-008 Finding Subject: COVID-19 - Education Stabilization Fund – Condition of Records Federal Agency: Department of Education Audit Findings: Material Weakness, Modified Opinion Contact Person Responsible for Corrective Action: Lela Simmons, CFO Contact Phone Number and Email Address: 219 391 4100 Ex 12365: lesimmons@ecps.org Views of Responsible Officials: We concur with the finding Description of Corrective Action Plan: Internal controls will be put in place to ensure all COVID 19 ESSER Funds are reported accurately to the State and Federal Department of Education. Reimbursements will be attached to State Email for disbursement. Anticipated Completion Date: We anticipate having the above corrective action plan in place by October 31, 2026

View Audit 394104

Finding 1182653 (2025-003)

Material Weakness 2025

School City of East Chicago

IN

Allowable Costs / Cost Principles School Nutrition Programs Internal Control / Segregation of Duties § 200.303

FINDING 2025-003 Finding Subject: Child Nutrition Cluster - Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Special Tests and Provisions - Non-Profit School Food Service Accounts Audit Findings: Material Weakness Contact Person Responsible for Corrective Action: Lela Simmons, CFO C...

FINDING 2025-003 Finding Subject: Child Nutrition Cluster - Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Special Tests and Provisions - Non-Profit School Food Service Accounts Audit Findings: Material Weakness Contact Person Responsible for Corrective Action: Lela Simmons, CFO Contact Phone Number and Email Address: 219 391 4100 Ex 12365: lesimmons@ecps.org Views of Responsible Officials: We concur with the finding Description of Corrective Action Plan: The Food Service director responsibilities are to oversee all functions of the Food Management Company. Food Service Director will be required to draft internal controls and detail instruction for the school corporation to ensure all documentation procedures match the FSMC invoice. The school corporation will not pay any unallowable cost by state regulation and rules. All state reporting documents and invoice will continue to be reviewed and signed off by the district CFO. A copy of all documents will be held in the food director office Anticipated Completion Date: We anticipate having the above corrective action plan in place by October 31, 2026

View Audit 394104

Finding 1182627 (2025-001)

Material Weakness 2025

Cottonwood-Oak Creek Elementary School District No.6

AZ

Allowable Costs / Cost Principles School Nutrition Programs Significant Deficiency

Finding Number: 2025‐001 Program Name/Assistance Listing Title: Child Nutrition Cluster Assistance Listing Numbers: 10.553, 10.555, 10.559 Contact Person: Business Manager, Food Service Director, and Business Office Staff Anticipated Completion Date: June 30, 2026 Planned Corrective Action: The foll...

Finding Number: 2025‐001 Program Name/Assistance Listing Title: Child Nutrition Cluster Assistance Listing Numbers: 10.553, 10.555, 10.559 Contact Person: Business Manager, Food Service Director, and Business Office Staff Anticipated Completion Date: June 30, 2026 Planned Corrective Action: The following corrections will be implemented. 1. Review and update procedures for calculating indirect costs in accordance with USDA Memo SP 60‐2016 and 2 CFR Part 200. 2. Ensure use of the ADE‐approved unrestricted indirect cost rate annually. 3. Implement a standardized calculation worksheet to document allowable indirect cost limits. 4. Require review and approval of indirect cost calculations by the Business Manager prior to posting. 5. Provide training to business office staff on federal cost principles and Child Nutrition requirements. 6. Perform periodic internal reviews to ensure compliance.

View Audit 394062

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