Corrective Action Plans

U.S. Department of Education Clinton School District #124 respectfully submits the following Corrective Action Plan for the year ended June 30, 2024. Contact information for the individual responsible for the corrective action: Daniel Brungardt, Superintendent Clinton School District #124 Independent Public Accounting Firm: Gerding, Korte & Chitwood, P.C., 723 Main Street, Boonville, MO 65233 Audit Period: Year ended June 30, 2024 The findings from the June 30, 2024, Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Significant Deficiency 2024-001 Child Nutrition Cluster Recommendation: We recommend that fund balances should be monitored to ensure that balances remain in line with child nutrition compliance requirements. Action Taken: Over the last five years, the school district's fund increased due to securing a contract at a low initial rate, while also benefiting from higher reimbursement rates and increased participation. This year, the district will once again go through the rebid process, and the estimated increase in costs is expected to range from 10% to 15%. This increase will likely surpass the amount the district receives in reimbursements, leading to a budget deficit. Additionally, student participation in the lunch program has declined over the years.

Below are the participation percentage rates. Current Participation Rates for Oct 2024 (percentages) HS - 52.53 lunch with 56.38 being free/reduced 36.64 breakfast with 62.5 being free/reduced MS- 66.94 lunch with 62 being free/reduced 23.42 breakfast with 82.85 being free/reduced CIS - 65.48 lunch with 73.70 being free/reduced 44.38 breakfast with 78.07 being free/reduced HE - 70.41 lunch with 74.53 being free/reduced 47.93 breakfast with 76.72 being free/reduced Participation Rates from Oct 2019 (percentages) HS - 59.03 lunch with 52.65 being free/reduced 32.23 breakfast with 69.64 being free/reduced MS- 69.74 lunch with 68.01 being free/reduced 55.13 breakfast with 72.28 being free/reduced CIS - 77.87 lunch with 72.29 being free/reduced 44.54 breakfast with 83.43 being free/reduced HE - 76.88 lunch with 71.27 being free/reduced         45.09 breakfast with 84 being free/reduced Additionally, during the rebid process, the school district will seek companies that have successfully increased participation, as this could also impact the overall cost of the program. The district will reduce the fund based on the following: Increased Contract Costs: District administration believes that through the rebid process and the new contract, the district will achieve at least a 10% reduction in contract costs. Indirect Costs: The school district has not been claiming indirect costs as part of its food service allocation in the past. However, beginning next year, the district will start including indirect costs in its food service budget. This change will help ensure that the full scope of expenses associated with operating the food service program is accounted for, providing a more accurate reflection of the program’s financial needs New Equipment: The district operates four kitchens, with only one having received upgrades in the past 10 years. A list of necessary equipment upgrades has been compiled. Below is a forecast of additional costs for the next three years, along with the equipment that will be purchased that will reduce the food service budget by $940.874.48

Completion Date: June 30, 2025 Sincerely, Daniel Brungardt, Superintendent Clinton School District #124

Segregation of Duties – Child Nutrition Cluster Recommendation: We recommend the district designate an individual to review eligibility determinations for accuracy and proper input into software. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: To enhance segregation of duties, we have designated a specific individual (Director of Food Services) responsible for reviewing eligibility determinations. This designated person is tasked with verifying the accuracy of information and ensuring proper input into the relevant software. These measures effectively separate key responsibilities, establishing a robust system of checks and balances. Through these implemented practices, our district aims to minimize errors, enhance accountability, and ensure the integrity of the grant management process. Name of the contact person responsible for correction action: Lavesa Glover-Verhagen Planned completion date for corrective action: June 30, 2025

CORRECTIVE ACTION PLAN December 11, 2024 Southwestern Virginia Transit Management Company (SVTMC) respectfully submits the following corrective action plan for the year ended June 30, 2024. Name and address of independent public accounting firm: Brown, Edwards & Company, L.L.P. 3906 Electric Road Roanoke, VA 24018 Audit period: June 30, 2024 The findings from the June 30, 2024, Schedule of Findings and Questioned Costs (the "Schedule “) are discussed below. The findings are numbered consistently with the number assigned in the Schedule. FINDINGS- FINANCIAL STATEMENT AUDIT 2024-001: Segregation of Duties and Management Oversight (Material Weakness) Condition: Due to staff turnover, duties handled by the Director of Finance included incompatible duties during the year under audit such as: collection of cash, post receipts to general ledger, and prepare bank deposit slips. ln addition, the Inventory Manager has access both to physical inventory and to the inventory tracking system. Criteria: A fundamental concept of internal controls is the separation of duties. No one employee should have access to both physical assets and the related accounting records, or to all phases of a transaction. ln addition, all significant transactions and controls should involve reconciliations and supervisory, or management level, reviews of those processes. An effective and timely review process is intended to prevent and detect both fraud and errors. Cause: Turnover in key positions can result in individuals performing duties that are not appropriately segregated. In addition, turnover can also create challenges in the oversight or review function. Effect: Internal controls are designed to safeguard assets and detect losses from employees dishonesty or error. Recommendation: Steps should be taken to eliminate conflicting duties and implement compensating controls, where possible. Corrective Action: Although turnover in key positions increased the need for staff to undertake incompatible duties, small staff sizes will likely perpetuate the need for the Director of Finance and Inventory Manager to occasionally perform duties which would be ideally segregated. To help alleviate the risks involved, management will develop additional compensating controls around these activities, including working with system vendors to identify activity logging capabilities and additional reports for periodic review by management. 2024-002: Grant Management and Operating Assistance (Material Weakness) Condition: During 2024, various functions related to financial management were not performed timely resulting in difficulties and delays in completion of the annual audit. Additionally, the untimely nature of grant reconciliations and drawdowns has led to significant cash and grant management issues. Criteria: Internal controls related to financial management should be designed to ensure timely reconciliations are performed, including submission of reimbursement requests and reconciling grant and local revenue. Cause: Turnover in financial positions and increased levels of federal and state grant usage caused significant delays in performance of and reduction in effectiveness of certain financial duties. Effect: Untimely drawdowns could result in vendors not being paid timely, result in cash shortages, and inability to pay payroll. Recommendation: We recommend that the Company establish financial management procedures to ensure that timely reconciliations and submissions of reimbursement requests. We would recommend these procedures be performed monthly and include tracking and reconciling grant activity by type (federal, state, and local). Corrective Action: The Interim Director of Finance and Accounting Supervisor are currently reviewing operating procedures and implementing methods to streamline work and eliminate duplicate activity. A Monthly Close Checklist is under development, which will create consistency in the timing and manner of recording financial activities. Additionally, detailed spreadsheets tracking grant activity have been developed, which will allow staff members to better monitor reimbursement requests and ensure vendors are paid timely moving forward. 2024-003: Bank Reconciliations (Material Weakness) Condition: Monthly bank reconciliations were not prepared by an accountant and reviewed and approved by a supervisor in a timely manner. Criteria: Monthly bank reconciliations should be performed by the 15th of the next month. Cause: Staff shortage and lack of cash flow management. Effect: Poor cash flow management resulting in vendor and contractor invoices not being paid timely. Recommendation: We recommend bank reconciliations be prepared by an accountant and reviewed by a supervisor to ensure unreconciled or unusual items, or other matters noted in the reconciliation, are detected and addressed in a timely manner. Corrective Action: The Interim Director of Finance and Accounting Supervisor are currently reviewing operating procedures and implementing methods to streamline work and eliminate duplicate activity. A Monthly Close Checklist is under development, which will create consistency in the timing and manner of recording financial activities. Currently, the Interim Director of Finance is preparing all company bank reconciliations. 2024-004: Trade Receivables and Revenue- Billing (Material Weakness) Condition: There were multiple customer accounts that were not billed throughout the year as services were provided by the Company. Criteria: Customers should be billed in a timely manner after being provided with services by the Company. Cause: Staff shortage, lack of revenue cycle oversight, and lack of cash flow management. Effect: Poor revenue cycle management, leading to customers not being billed. This leads to cash shortages from operations and a further reliance on grant funding for operations. This could also lead to the Company being unable to collect billed balances, as certain customers were hit with substantial bills when invoices were caught up in June 2024. Recommendation: We recommend billing customers for services rendered in a timely manner to improve cash flow and prevent collection issues. Corrective Action: Management is working to fill vacant Finance positions, including Accounts Receivable Associate. Until that time, the Interim Director of Finance has taken over responsibility for both advertising and operating billings. A Monthly Close Checklist is under development, which will create consistency in the timing and manner of recording financial activities. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAM AUDIT 2024-005: Federal Transit Cluster - AL# 20.507, Cash Management - Material Noncompliance/Material Weakness in Controls over Compliance Condition: A lack of cash flow and grant management oversight resulted in contractors and vendors not being paid timely during FY2024 . We noted 14 instances where contractors and vendors were not paid for over 30 days. We also noted four vendors were not paid for over 90 days. Criteria: All grant activities should include management level oversight to ensure timeliness, accuracy, and compliance with specified grant requirements. Cause: Lack of proactive cash flow and grant management occurred when invoices were received. Effect: Multiple contractors and vendors were not paid for over 30 days after receipt of invoice. Four vendors were not paid for over 90 days. Recommendation: A designated management level individual should have oversight to require timely drawdowns of capital grants and timely payment of invoices. Corrective Action: Issues with the implementation of new Federal and Commonwealth transportation grant portals hindered staff from being able to submit grant draw requests in a timely manner. Management is addressing these issues as they arise. The Interim Director of Finance and Accounting Supervisor are currently reviewing operating procedures and implementing methods to streamline work and eliminate duplicate activity. A Monthly Close Checklist is under development, which will create consistency in the timing and manner of recording financial activities. Additionally, detailed spreadsheets tracking grant activity have been developed, which will allow staff members to better monitor reimbursement requests and ensure vendors are paid timely moving forward. 2024-006: Federal Transit Cluster - AL# 20.507, Period of Performance - Significant Deficiency, Controls over Compliance Condition: There were numerous grants awarded to the Company that had award end dates prior to June 30, 2024, that had not been appropriately closed out at year-end. Criteria: All grants that are not active should be closed out within the grant awards management system after their award end date. Cause: Lack of proactive cash flow and grant management. Effect: Out of 18 federal grant awards tested, 6 had award end dates prior to June 30, 2024. All 6 were still marked as active in the grant award management system as of June 30, 2024, with total remaining funds on these awards totaling $673,179. Two of these grant awards had award beginning dates over 15 years old, had no activity during FY2024, and had not been closed out by June 30, 2024. Recommendation: A designated management level individual should close out all grant awards whose period of performance has expired within the grants management system. Corrective Action: Five FTA grants are in Active Award/Ready for Closeout (as of August 1 3, 2024), including VA-202 1- 038-01, YA- 2016-009-0 1, VA-202 1- 037-01, YA-2016-016-01 and YA-04-0027-01. Additionally, an inquiry was sent to the FTA on August 19, 2024, on what could be done with the remaining funds in VA-2019-018. Grant VA-2023-002- 00 has experienced delays due to the all-electric vehicle demand and supply chain issues. GRTC has been in communications with the FTA regarding this situation. All other active FTA grants have end of performance dates in 2025. 2024-007: Federal Transit Cluster - AL# 20.507, Procurement - Finding, Non-material Non-compliance Condition: As award recipients of Federal Transit Administration (FTA) funds, the Company is required to include certain clauses in contracts funded by FTA funds. We noted that the Company did not include the required " prohibition on certain telecommunications and video surveillance services or equipment" clause and the " notification of legal matters " clause as required clauses in their procurement manual and did not contain these clauses in one contract tested. Criteria: The FTA mandates that contracts funded with FTA awards must contain certain clauses related to prohibited vendors under the Code of Federal Regulations section 200.216 and requires contractors to notify the Company and the FTA of any current legal matters. Cause: Lack of compliance with FTA contract regulations. Effect: Contracts do not meet FTA contract regulations and are non-compliant. Recommendation: We recommend that the Company incorporate these required FTA clauses in their procurement manual and their standard contracts to properly incorporate in any future FTA funded contracts. Corrective Action: Missing FTA clauses will be addressed via revisions / updates to all of GRTC ' s solicitation and contract templates. As templates can often be edited by mistake, another tool to proof contracts is the " FTA Clause Matrix 2023 Applicability of Third-Party Contract Provisions" . The current version of this matrix includes provision from 2 CFR 200, Master Agreement 30 (FY 23) and Circular 4220.1 F. Procurement received this matrix during an NTI Procurement 101 training course December 2023. Referencing this matrix has been added as a step in project checklists. If the Federal Audit Clearinghouse has questions regarding this plan, please call Kevin Price , General Manager at 540-982-0305. Sincerely Kevin Price General Manager

The District will create a procedure for monthly review of meal counts at sites and reconciliation with the monthly claims. Reports will require a second person to review and approve before filing. The Director of Nutrition Services will review the Title 7 requirements and review the new procedure for compliance.

Finding #2024-001 – Program Income Contact – Suzanne Tobin, Chief Financial Officer Telephone Number – (301)-832-3810 Completion Date – December 10, 2024 Corrective Action Plan: Effective immediately, the Organization will comply with the program income compliance requirement of the U.S. Department of Housing and Urban Development (HUD) Continuum of Care Program by netting program income generated from the pass-through grant to the amount to be reimbursed prior to submitting the reimbursement request to HUD, in accordance with the protocol outlined in the manual issued by the Behavioral Health Authority (BHA).

Finding: 2024-004 – Inaccurate Reporting/Lack of Independent Review and Approval of Reporting Program: Community Development Block Grants/Entitlement Grants (ALN 14.218); U.S. Department of Housing and Urban Development; Direct award; All project numbers. Auditor Description of Condition and Effect: During our audit procedures over the City's annual PR-26 reports and the annual CAPER, we noted that none of the reports were subject to an independent review and approval prior to submission in order to detect and correct potential errors or omissions. We also noted that the CAPER was submitted as required, but contained financial data that did not agree to the City's underlying accounting records for the reporting period as required. The City's annual PR-26 report did not agree to the annual CAPER by approximately $435,000 and needed to be resubmitted to HUD. As a result of this condition, the City did not fully comply with the requirements of the grant and filed reports that contained financial errors. Auditor Recommendation: We recommend that reports required to be submitted to the oversight agency that contain financial information be reviewed and approved by the finance department to ensure accuracy of the financial information. Corrective Action: The City acknowledges the issues noted with reporting in the Community Development Block Grant Program. Finance and Community Development will work together to strengthen programmatic and financial reporting so that it is both timely and accurate. Staff working on this grant are new to their positions since the last time the program was audited, and are committed to reviewing policies and procedures to make sure reporting is completed appropriately. Responsible Person: Aaron Kuhn, Revenue Services Director and Marcie Gillette, Community Services Director Anticipated Completion Date: June 30, 2025

We have put in place that all cash reports will be verified in balance before and after bank statements are completed each month. These reports will then be reported in the monthly Treasurer Report to the Village Board and Management. This process will be completed for each account of the Village. These reports will also be printed and filed with our bank statements that are kept in-house for the correct time in compliance with the Illinois Local Records Act. This control will be completed by the Village Treasurer and verified by the Village Office Manager. We have put in place that all payroll liability accounts will be checked bi-monthly to verify only unremitted amounts are showing as a balance. We became aware that the previous year’s amounts were being carried over due to not being properly cleared out at year’s end, and that this line item within that account does not reflect an in and out account similar to other payroll accounts. With the help of our accounting software, gWorks, this should be corrected and should no longer be an ongoing error requiring adjustment. This control will be carried out by the Office and Human Resource Manager. We have put in place that all interfund transfers will be approved by the Office Manager and/or Village Treasurer (two parties involved in approval). Due to the setting up of our payroll process, these transfers will be verified during the bank reconciliation process. The Village Treasurer will also verify that all vendors are paid from the proper account to assure invoices are coded appropriately after entry by office staff to avoid most interfund transfers. If a vendor is paid from an incorrect account, the Office Manager or Village Treasurer will be required to review and approve to reimburse that account with a transfer between funds. The Village Office Staff employees will verify deposits before bank submission to help assure all monetary deposits are entered into the proper account. If a deposit is incorrectly sent to the wrong bank account, the Office Manager or Village Treasurer will adjust the bank accounts with an interfund transfer to balance the deposit correctly.

Responsible Officials: The acting Executive Director reported incident immediately and enforced quality improvement program in order to ensure that fraud, waste, and abuse do not occur. However, several allegations are being investigated and are currently being responded, by the Organization.

Finding 2024-003 – Child Nutrition Cluster - Reporting Context: During the testing of claim reimbursements, we noted two monthly reimbursements in a sample of four claims where the number of meals claimed for reimbursement did not agree to underlying meal system reports. For one claim reimbursement, there was an overstatement of $9,976 and on another an understatement of $1,467. This resulted in a net over reimbursement $8,509 in the testing sample. Contact Person Responsible for Corrective Action: Leslie Beach, Director of Food Services Contact Phone Number: 812-542-2245 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: A new person has been hired in this position. A manager will review claim reimbursements. Anticipated Completion Date: Immediate correction.

Recommendation: There were inadequate controls over documentation of the number of students receiving snacks that are claimed for reimbursement. Supporting documentation relating to snacks is not being properly maintained. The School Board should implement policies and procedures to ensure that supporting documentation is maintained for all snacks served. Corrective Action Plan: The child nutrition department will attempt to remedy this type of issue by recording the snack meals electronically by utilizing our existing system. The supervisor of child nutrition will determine how to implement this function.

Recommendation: There were inadequate controls over documentation of the number of students receiving snacks that are claimed for reimbursement. Supporting documentation relating to snacks is not being properly maintained. The School Board should implement policies and procedures to ensure that supporting documentation is maintained for all snacks served. Corrective Action Plan: The child nutrition department will attempt to remedy this type of issue by recording the snack meals electronically by utilizing our existing system. The supervisor of child nutrition will determine how to implement this function.

Condition: During allowability testing it was discovered the District has no formalized reviewed of expenditures charged to grant. This included expenditures related to payroll, supplies and indirect costs. Planned Corrective Action: This finding was due to the District having turnover among key personnel in the grants area, as well as non-adherence to policies and procedures related to grant records, grant accounting, and year-end close processes. The District will perform periodic grant reconciliations throughout the fiscal year to ensure that grant records tie to the general ledger. The District will also ensure policies and procedures are updated, staff is trained, and documented evidence of appropriate and allowable expenditures is maintained. Contact person responsible for corrective action: Rusty Williams, Interim Chief Financial Officer Anticipated Completion Date March 31, 2025

Adjusting Journal Entries, Required Disclosures and Draft Financial Statements Year ended June 30, 2024 Auditors' Recommendation: Although auditors may continue to provide such assistance both now and in the future, under this pronouncement, the District should continue to review and accept both proposed adjusting journal entries and footnote disclosures, along with the draft financial statements. District's Response: Adam Moate, Business Manager, has received, reviewed and accepted all journal entries, footnote disclosures and draft financial statements proposed for the current year audit and will continue to review similar information for the year ending June 30, 2025 and in future years. Further, the District believes it has a thorough understanding of these financial statements and the ability to make informed judgments based on these financial statements. Lastly, the District considers such assistance provided by the auditors to be the most cost effective in preparing such information.

Cash Management Management agrees with the finding and the auditor's recommendation. There was confusion at the time of this agreement as the nature of the work was in line with providing institutional services rather than a federal grant agreement. This led to a misunderstanding of cash management requirements due to the nature of the award. Mass General Brigham (MGB) has removed the $215K of questioned costs from the Schedule of Expenditures of Federal Awards (SEFA). The funding will be returned to Advanced Regenerative Manufacturing Institute, Inc. in January 2025. Additionally, management will review the limited instances where departments have been previously approved to request federal cash. This review is to confirm that an exception to the standard practice of managing this through the central Research Finance team is appropriate. Based on results of this review, to be completed by March 2025, management will determine criteria and prior approval requirements for departments to request federal cash if MGB concludes this practice will continue on a limited exception basis. The review will be conducted with oversight by the MGB Vice President of Research Management and Research Finance and the MGB Research Controller.

Non-Compliance with Monthly Direct Loan Reconciliations Management agrees with the finding and the auditor's recommendation. Mass General Brigham (MGB) will update existing procedures to include a formal monthly Direct Loan reconciliation with applicable supporting documentation. This will be implemented February 2025 for the period beginning January 2025. Updates will be prepared by the Director of Student Financial Aid and the Director of Finance for review and approval by the Controller's Office prior to implementation.

The District's management will evaluate the grant monitoring process and ensure all reporting for federal grant requirements is accurate, with a planned implementation date by the Financial Officer of December 13, 2024.

Audit Finding Reference: 2024-001 Management’s Response and Planned Corrective Action: From approximately July 2023 to January 2024, employees' timesheets were not being printed and signed. This was a result of turnover in the organization's finance position. Timesheets were being submitted electronically by employees and reviewed by supervisors however the approval of the timesheets was not being documented prior to processing payroll. As of January 2024, NRPC reimplemented a more formal timesheet review process which included an email from each supervisor indicating their approval of employees' timesheets and an email from the Assistant Director to the Finance & Benefits Administrator indicating that timesheets have been approved for payroll processing. For each payroll, a documentation packet that includes all timesheets for that pay period is prepared by the Finance & Benefits Administrator and passed along to the Executive Director for his signature approval. As of November 2024, after consultation with Plodzik & Sanderson PA, NRPC has reimplemented collecting employee and supervisor signatures on timesheets in addition to the process described above. Name of Contact Person and Completion Date: Name 1 Nicole Kingsbury Name 2 Kate Lafond or Jay Minkarah Anticipated Completion Date – Complete

All funds have been refunded to state agency and expense reports amended appropriately.

Corrective Action Plan In the event that our health system experiences such an extraordinary occurrence in the future, any related expenses will be excluded from claims associated with this type of event. FMOLHS incurred more qualifying expenses than the amount of funding received and included in the claim. Therefore, there is no concern regarding any overstatement in the total claim amount. Anticipated Completion Date June 30, 2024 Name of Contact Person for Corrective Action Amanda Hymel, Corporate Controller

Re: Corrective Action Plan for Findings Related to Monthly Claims for Reimbursement and Free/Reduced Meal Applications In response to the findings regarding the District's internal controls over monthly meal count reporting, Claims for Reimbursement, and the review of Free and Reduced Meal applications, Hannibal School District 60 has developed the following Corrective Action Plan (CAP) to address the identified issues and ensure compliance with federal regulations under 7 CFR 210.B(a), 7 CFR 220.11(c), and 7 CFR 245.6(c)(4). Corrective Action Plan Details: 1. Finding 1: Lack of Oversight on Monthly Claims for Reimbursement Condition: The District did not conduct a review of monthly Claims for Reimbursement before submission to the Department of Elementary and Secondary Education (DESE), nor was a subsequent review performed after submission. Additionally, the Claims for Reimbursement for February and April were submitted with the lunch and breakfast meal counts incorrectly switched. Planned Actions: o Review Process for Claims: The District will establish a clear and documented procedure for reviewing the monthly Claims for Reimbursement before submission to DESE. This process will include a verification checklist to confirm the accuracy of meal counts for both breakfast and lunch. o Secondary Review by Senior Staff: A second, independent review will be conducted by the Food Service Supervisor or another designated senior staff member before submission. The purpose of this review will be to ensure that meal counts are correctly reported and to identify any discrepancies before the claims are submitted. o Training: All staff involved in the preparation and submission of monthly meal claims will undergo additional training on the accurate completion of meal count reports and claims for reimbursement. 2. Person(s) Responsible: o Food Service Director: Oversee the implementation of the new review procedures for monthly Claims for Reimbursement. o Food Service Supervisor: Conduct a secondary review of the monthly meal count reports before submission. 3. Anticipated Completion Date: The review procedures and training will be fully implemented by January 1st, 2025 4. Finding 2: Inadequate Review of Free and Reduced Meal Applications Condition: During testing, it was noted that one app.lication had illegible numbers, resulting in unclear income figures. The household was assumed to be eligible for free meals, but the accuracy of the income figures was not verified, which could have led to improper eligibility determination. Planned Actions: o Review and Verification Process: The District will implement a formal review process to ensure that all Free and Reduced Meal 58 applications are thoroughly checked for legibility and accuracy. This review will include verifying income calculations and ensuring that illegible numbers or unclear data are clarified before eligibility determinations are made. o Enhanced Application Procedures: A standardized checklist will be developed for reviewing applications, with specific attention to legibility, accuracy, and completeness. The checklist will be used by staff during the application review process. o Follow-up with Households: If any data on an application is unclear or illegible, the District will contact the household to clarify the information before proceeding with the eligibility determination. o Training: The Food Service Director and application review staff will receive training on the proper review and verification of Free and Reduced Meal applications, including the importance of ensuring that all information is clear and accurate. 5. Person(s) Responsible: o Food Service Director: Oversee the review and verification process for Free and Reduced Meal applications. o Food Service Staff: Review applications for legibility and accuracy, and follow up with households if necessary. 6. Anticipated Completion Date: The new review process and training will be fully implemented by January 1st, 2025 7. Cause of Findings: The primary cause of these findings was the misinterpretation of handwritten reported income by the applicant and a mix-up of breakfast and lunch counts during the reporting of Free and Reduced meal counts for one school over the course of a few months. 8. Effect of Findings: Without a robust review process in place, there is a risk of submitting inaccurate meal count data and miscalculating eligibility for free and reduced meals. This could result in the District receiving either too much or too little funding from DESE, affecting the financial stability of the program. Additionally, failure to ensure accurate eligibility determinations could result in noncompliance with federal regulations, potentially leading to penalties or loss of funding. Implementation and Monitoring: • Ongoing Monitoring: The Food Service Director will regularly monitor the new procedures to ensure they are being followed correctly and will conduct random spot checks of meal counts and application reviews to ensure compliance. • Reporting: The Food Service Director will report on the status of the corrective actions to the Superintendent on a monthly basis until the corrective actions are fully integrated into the District's operational processes. We are committed to ensuring the accuracy and integrity of our meal count reporting and eligibility determinations. The District will implement these corrective actions in a timely manner to address the identified findings and ensure compliance with applicable federal regulations. If you have any questions or require further details, please do not hesitate to contact me. Sincerely, Susan Johnson Superintendent of Schools Hannibal School District #60

Recommendation: We recommend the Council updates in payment process to ensure that all providers are paid timely after receipt of grant funds. Action Taken: We have established a streamlined process to ensure timely disbursement of funds to providers upon receiving grant funds. Additionally, we have implemented a monitoring system to track payment timeliness and promptly address any delays. Responsible Party: Jeremy Ashbaugh, Director of Finance. Anticipated Completion Date: The issue has been corrected.

The District will ensure that Additional or Compensatory Special Education or Related Services (ACSERS) funds are not used to fund Substitute Services due to the teacher shortage.

Finding 2024-001 – Special Tests and Provisions State of Condition: The project did not make the required residual receipts deposit. Corrective Action: Management will ensure that the required residual receipts deposit is made.