Corrective Action Plans

The County will ensure that when a person turns 18, funding will be terminated per the grant requirements. Responsible Official: Joshua Bridges, Director of Human Services. Contact Information : 610-782-3551. Anticipated Resolution Date: Immediately

Significant Deficiency Over Financial Reporting – The following steps have been taken or will be taken to address Finding 2025-001: • Shalom Health Care Center, Inc. has been updated the verbiage in the Sliding Fee Discount Schedule policy and procedures so that the definition of family in the policy better matches the procedures that were being implemented. • Shalom Health Care Center, Inc will be reviewing the updated Sliding Fee Discount Schedule policy and procedures with all employees. • Shalom Health Care Center, Inc will also make sure there is another level of review to make sure that the sliding fee discounts are assigned accordingly based on income and household size. Management did challenge this as being a Significant Deficiency and believes that it should be listed as a note. Management believes additional consideration should be given to the nature, scope, and impact of the exceptions before concluding that the matter constitutes a significant deficiency in compliance with 42 CFR 51c.303(f). The Organization maintained a Board of Directors approve Sliding Fee and Discount Program policy which highlight the family definition and income definition, maintained and annually updated its sliding fee discount schedule in accordance with applicable federal poverty guidelines. The issue identified by the auditors did not involve the design of the discount schedule itself or the incorporation of the federal poverty guidelines. Rather, the exceptions resulted from staff members applying an interpretation of family size that differed from the definition established in the Organization's internal policy when processing individual applications. Accordingly, management believes the audit report should clearly distinguish between an error in applying the Organization's internal methodology and a violation of a federal compliance requirement. Management has requested that the auditors identify the specific provision of 42 CFR 51c.303(f) that was allegedly violated in each of the three cited cases. Management does agree that the procedures did not follow the policy and that this is more of an issue of process and controls. Management respectfully disagrees with the Finding 2025-001, particularly the classification given as a Significant Deficiency and the characterization of the exceptions as noncompliance with the federal requirement cited in the finding. Management requested the auditors to reconsider whether the circumstances support classification as a Significant Deficiency. At a minimum, management requests that the finding clearly distinguish between (1) compliance with the federal requirement and (2) the Organization's internal procedures for determining family size and calculating the sliding fee discount. Based on the limited number of exceptions, the absence of questioned costs, the lack of evidence of intentional noncompliance, and the fact that the Organization maintained and updated its sliding fee schedule in accordance with the applicable poverty guidelines, management believe that the finding should have given a lesser finding classification and a note in the audit report.)

Finding 2025-002: Housing Voucher Cluster- Section 8 Housing Choice Vouchers Criteria: The Uniform Guidance requires that local entities receiving federal awards establish and maintain internal control designed to reasonably ensure compliance with laws, regulations, and program compliance requirements. The Uniform Guidance further requires auditors to obtain an understanding of the local entity's internal control over federal programs. To minimize the risk of errors, internal controls should be in place for all program compliance requirements, including the review and approval of participant eligibility. Condition/Context: After completing an internal investigation and an extensive analysis of payments under the program, the City determined there was $16,424 in housing assistance payments paid to ineligible participants in 2025. In a sample of 60 benefit payments, excluding the aforementioned payments, no additional instances of payments to ineligible participants were found during the audit. Our sample was not statistically valid. Cause: Payments to ineligible participants were due to City employees' falsification of records, undisclosed conflict of interest, and collusion. Questioned Costs: All known questioned costs related to 2025 were identified by the City and are included in the condition/context section above. There were no questioned costs identified that exceed the required reporting threshold. Effect: Payments were made to ineligible participants. Recommendation: We recommend the City implement internal controls in order to prevent ineligible beneficiary payments. Corrective Action Planned: The City of Janesville has internal controls that ensure that Section 8 Housing Choice Vouchers clients are eligible to be served by the program. Employees receive training on program eligibility guidelines. Employees are subject to background checks prior to employment. Employees also are provided with, and acknowledge the City's conflict of interest policy. Conflicts of interest are to be reported to the supervisor so conflicts can be avoided by providing the subject participant to another case manager. Additionally, all conflict of interest applications are reviewed by a supervisor. Applicants are required to complete an application and provide documentation proving income and other eligibility requirements for the program are met. The case manager reviews this documentation and makes an initial determination as to eligibility. Annually, the City performs quality control checks on client files to review eligibility, income calculations, and inspection requirements. The quality control checks are done by a supervisor. Each payment batch also goes through a review process before being paid. In this instance, the two employees that initiated the files for eligibility, respectively, colluded to circumvent the system of controls in place. The two employees falsified eligibility documents, failed to disclose the conflict of interest, and deemed related parties (families and friends) to be eligible for benefits, The employees then approved the payments for each other's clients to avoid detection of the ineligible payments. This collusion allowed for the employees to provide benefits to ineligible related parties. When another employee was asked to initiate an inspection, she recognized that the inspection was with a related party and reported it to a supervisor. This led to the supervisor doing a review, and at that time, it was discovered that the employees appeared to be approving benefits to ineligible, related parties, in violation of both City and Housing and Urban Develop (HUD) policies. Once discovered, the City immediately did a thorough and complete investigation and referred the matter to the Police Department for investigation into possible criminal charges. Both employees were placed on Administrative Leave of Absence and subsequently resigned their positions. Formal felony criminal charges were referred to, and filed by, the District Attorney. Those cases are pending. The internal controls in place do not contemplate the ability to prevent collusion from circumventing the controls. To implement such controls would be financially prohibitive. The City's detection controls identified fraud prior to the fraud exceeding the required reporting threshold. However, the City self-reported the fraud to both our independent auditors and HUD. Given the unique nature of two employees colluding to circumvent the City's internal controls, the fact that detection controls stopped the fraud before it materially impacted the program, and the City's response to seek criminal charges, the City believes this matter is a unique event and will not occur again in the future. Furthermore, the City believes that it would be cost-prohibitive to hire the additional staff necessary to prevent internal controls being circumvented by collusion. Planned Completion Date for the Corrective Action Plan: Completed. Contact Persons Responsible for the Corrective Action Plan: The following Finance Office staff members are responsible for items outlined above in the Corrective Action Plan: • David Godek, Finance Director • Jennifer Petruzzello, Neighborhood and Community Services Director • Kelly Bedessem. Housing and Emergency Management Director

Johnson Health Center will strengthen its processes and oversight related to the Sliding Fee Discount Program to ensure staff are consistently applying the sliding fee process in accordance with JHC policies and applicable requirements. The Billing Department will develop a comprehensive training manual for front-end staff that outlines the proper procedures for determining and documenting sliding fee eligibility and applying the appropriate discount. In addition to the written training materials, the Billing Department will provide hands-on, on-the-job training to ensure staff understand how to properly complete each step of the sliding fee process. The Billing Department currently performs monthly audits of sliding fee transactions to identify errors and ensure the process is being followed appropriately. Going forward, our Director of Compliance will have a more active role in the monthly monitoring process. The Director of Compliance will review the Billing Department's monthly audit results and supporting documentation to validate that findings are accurate, complete, and appropriately addressed. Any identified issues will be communicated to the appropriate staff and corrected timely. This additional oversight will provide an independent review of the monthly monitoring process and help ensure that identified deficiencies are properly addressed and that the sliding fee process remains compliant on an ongoing basis. JHC will also implement a progressive disciplinary process for repeated failure to follow the Sliding Fee Discount Program procedures. The disciplinary actions will be applied as follows: • First occurrence: One-on-one counseling and review of the applicable procedures. • Second occurrence: Verbal warning and additional training. • Third occurrence: Written warning. • Fourth occurrence: Further disciplinary action, up to and including termination. The training manual and additional staff training will be implemented as part of JHC's corrective action process. Monthly monitoring by the Billing Department, with additional review by the Compliance Officer, will continue on an ongoing basis to ensure the corrective actions remain effective and that any future issues are identified and addressed promptly.

Finding 2025.002 - Special Tests and Provisions - Sliding Fee Scale Documentation Recommendation The Center should establish a system of internal controls to ensure that all sliding fee discounts are properly calculated and supported based on family size and income. Action Taken This was also a finding in the 2023 Audit and again in 2024. In response to the audit finding, I worked directly with the Director of Clinical Operations and the Patient Service Representative Manager to conduct a comprehensive review of the health center's existing sliding fee scale policy to ensure alignment with federal guidelines and best practices, including clarification of documentation requirements, acceptable forms of income verification, and the definition of family size. We developed and implemented a step-by-step standard operating procedure (SOP) for Patient Service Representative (PSR) staff to consistently assess and apply sliding fee discounts. The SOP includes clear instructions for verifying documentation, calculating discount eligibility, and recording determinations in the patient's record. The Clinical Operations Director's management team will conduct quarterly spot audits of a sample of sliding fee files to verify correct application and documentation. The managers will report the findings to leadership, provide corrective follow-up, and provide any needed training for PSR personnel on the updated policy and procedures. I reported all identified and assessed changes to the health center's board of directors or its audit committee for review and oversight. The board verified that appropriate corrective action was being taken regarding internal controls. Waikiki Health is also considering engaging an outside firm to assist with streamlining the sliding fee scale process and strengthening related internal controls.

Forty (40) tenant files sampled by the auditors, seven (9) files did not have utility allowance calculation that agreed to the HUD form 50058; four (4) files did not have tied to the HAP register for the period as management was unable to locate documentation. Additionally, five (4) tenants were not reexamined and re-certified annually. Based upon staffing issues and staff s inability to learn the HUD regulations with Annual Reexaminations and Administrative Plan requirements between 2023 - 2025, Annual Reexaminations were getting further and further behind. RHA had hired independent contractors back in 2025 to assist RHA catch up but that did not work out. After the conversion of the software in June 2024 to Scott Accounting and Computer Software (SACS) from YARDI, most of the HAP errors came from old PIC files that were pulled over from PIC because the current staff were not double data entering the AR s and IR s into both programs for the few months prior to submission. This caused the HAP issues. All files have been reviewed the past 1.5 years and all HAP has been corrected to landlords based off those errors. Prior staff did not put a checkmark in the box to print reports, which forced the software to put the reports into a Document Management storage system for each tenant. The CEO worked with the software vendor to force the pushing of all reports associated with the AR, IR, MI, PMI, Transfers, MO and PMO to go into Document Management system and store. All FY2024 and FY2025 files are being completed in FY2026 and will be done by December 2026. The CEO and COO are reviewing all files by HCV staff and ensuring that a Compliance Checklist is completed on each file and once the file is certified for its AR, the file automatically goes into Document Management. The 50058 form is reviewed to ensure that the Utility Allowance on the form is also what is pulled onto the 52667 Utility Allowance Schedule form. All AR supporting documents are also monitored and ensured that they scanned into the Document Management system under the tenant folder for that Transaction Type. Beginning January 2027, RHA will be searching for a Compliance Officer staff person to go through files each month (10% of each Program Specialist s case load for prior months Annual Reexams or other types of transactions that occurred that prior month)

It has been identified that the FASSPHA Unaudited Submissions were not submitted by the February 28, 2025, deadline. RHA Administration has achieved in getting all outstanding Independent Audits completed and submitted for 2020-2024. The Unaudited FY2025 was submitted late by the contracted Fee Accountant for the 2nd year. RHA CEO will monitor the timeline of the contracted Fee Accountant going forward for FY2026 Unaudited Submission deadline of February 28, 2027. RHA CEO will monitor the progress of the Fee Accountant throughout the month of January 2027 with weekly reports/phone meeting. On or by February 10th, if the Fee Accountant does not feel they can have the Unaudited FASSPHA submitted by February 28th, an extension has to be requested by February 12th to get an additional 30-day extension approved by HUD by showing a verifiable extenuating circumstance preventing the on-time submission. Under 24 CFR § 902.60, a grace period of 15-days is provided to a PHA for the FASSPHA unaudited submission, which would give RHA until March 15, 2027 but if the extension was never requested on February 12, 2027, then the submission would have to occur prior to the end of the grace period of the 15- days. RHA Administration feels that prior years being completed and software conversion completed in 2024 and all corrections have been made on the GL, there should not be a future reason for the FASSPHA Unaudited Submission to not be on time by February 28th of each year.

State of Missouri Single Audit Corrective Action Plan Year Ended June 30, 2025 State Agency: Department of Social Services (DSS) – MO HealthNet Division (MHD) and Family Support Division (FSD) Audit Finding Number: 2025-004 - Medicaid and CHIP Eligibility Determination Timeliness Name of the contact person responsible for corrective action: Stacy Kaylor Anticipated completion date for corrective action: 12/31/2027 Recommendation: The DSS through the MHD and the FSD continue to review, strengthen, and enforce internal controls to ensure participant eligibility is determined within the required timeframes. DSS Response: The DSS agrees with this finding. DSS has made significant progress in reducing the backlog of applications. DSS continues to develop and implement technologies intended to assist the department and participants with necessary actions such as submitting applications, verifying income and resources, and providing required information. The estimated implementation date of this technology is December 31, 2027. Corrective action planned is as follows: The DSS will continue to work towards completing applications within the established timeframes outlined in 42 CFR 435.912(c)(3) and 42 CFR 457.340(d).

State of Missouri Single Audit Corrective Action Plan Year Ended June 30, 2025 State Agency: Department of Social Services (DSS) – MO HealthNet Division (MHD) and Family Support Division (FSD) Audit Finding Number: 2025-003 - Medicaid and CHIP MAGI-Based Participant Eligibility Redeterminations Name of the contact person responsible for corrective action: Stacy Kaylor Anticipated completion date for corrective action: 12/31/2026 Recommendation: The DSS through the MHD and the FSD strengthen internal controls to ensure redeterminations are completed as required. DSS Response: The DSS disagrees with this finding. Throughout SFY 2025, the agency was actively monitoring and strategizing to work towards completing all renewals by the deadline of December 31, 2025. While the DSS was unable to complete all renewals by the deadline of December 31, 2025, progress throughout all of SFY 2025 continued. Additionally, the DSS does not consider this within the scope of the SFY 2025 audit because federal requirements did not require all renewals to be complete until December 31, 2025, which falls in SFY 2026. DSS resumed initiating renewals starting in April 2023 under the unwinding plan submitted to CMS with the goal to complete all unwinding related renewals prior to the deadline of August 31, 2024. However, DSS encountered staffing challenges in completing all unwinding renewals by the established deadline. On August 29, 2024, CMS released guidance recognizing the challenges that many states faced impacting the ability to complete unwinding related renewals and restore routine operations within the original timelines established, extending the allowance for states to continue to use the exception under 42 CFR 435.912(e) through December 31, 2025. With the backlog of MAGI annual renewals and the changes that will be implemented from the passage of HR. 1 (the Big, Beautiful Bill), a new plan to complete redeterminations was formed based on federal flexibilities. The DSS continued to complete redeterminations for MAGI participants throughout the unwinding period; however, around April 2025 leadership began revising the procedures of eligibility staff and leveraging additional staff to ensure case actions, including annual renewals, were completed timely. The department contracted to increase temporary staff through 2026 to focus on working the backlog for MAGI annual renewals by December 31, 2026.

State of Missouri Single Audit Corrective Action Plan Year Ended June 30, 2025 State Agency: Department of Social Services (DSS) – MO HealthNet Division (MHD) and Family Support Division (FSD) Audit Finding Number: 2025-002 - Medicaid and CHIP MEDES Death Match Name of the contact person responsible for corrective action: Stacy Kaylor Anticipated completion date for corrective action: 1/1/2027 Recommendation: The DSS through the MHD and the FSD resume the DHSS vital records death match in the MEDES. DSS Response: The DSS partially agrees with this finding. DSS has controls in place to identify deceased individuals in the MAGI eligibility system (MEDES). DSS administers an electronic verification match with the federal hub at application and during the annual review process to inquire about death. Currently, a death match with Department of Health and Senior Services (DHSS) vital records is functional in the Family Assistance Management Information System (FAMIS) eligibility system currently used for Supplemental Nutrition Assistance Program (SNAP), Temporary Assistance for Needy Families (TANF), and MO HealthNet for Aged, Blind, and Disabled (MHABD) individuals. When the match is received into FAMIS from DHSS, that information is included on the eligibility file submitted to MMIS to ensure that the death date is captured in MMIS to prohibit any payments after the death of the individual. This control ensures that no improper payments are made on a beneficiary’s behalf after the date of death. DSS has processes in place to close eligibility when death information is received from family members and providers during the certification period. Additionally, in compliance with 42 CFR 435.949, DSS administers an electronic verification match with the federal hub at application and during the annual review process to inquire about death. DSS is continuing to evaluate necessary steps to reinstate the death match with DHSS vital records, but DSS does not have an anticipated completion date. Corrective action planned is as follows: The DSS is strengthening controls by updating the eligibility systems to include the quarterly match with the Social Security Administration (SSA) master death file as required by HR 1. DSS estimates that the update will be completed by January 1, 2027 as required.

State of Missouri Single Audit Corrective Action Plan Year Ended June 30, 2025 State Agency: Department of Social Services (DSS) – MO HealthNet Division (MHD) and Family Support Division (FSD) Audit Finding Number: 2025-001 – Medicaid and CHIP Eligibility System Internal Controls Name of the contact person responsible for corrective action: Stacy Kaylor Anticipated completion date for corrective action: 4/1/26 Recommendation: The DSS through the MHD and the FSD strengthen internal controls to timely prevent, detect, and correct improper dual enrollments in the MEDES and the FAMIS for participants of the Medicaid program and the CHIP. The DSS should review the dual enrollments for the participants identified in this finding, correct any improper enrollments in the applicable eligibility system(s), and recoup any related improper payments and claims. DSS Response: The DSS agrees with this finding. Corrective action planned is as follows: A report was developed in October 2025 to identify individuals with multiple active Medicaid Eligibility (ME) Codes that include different coverage types. The report is filtered through the FAMIS system to ensure both levels of coverage are active when the report is worked. Staff began working this report manually in Spring of 2025 and they identified higher priority tasks such as closing Adult Expansion Group (AEG) coverage for individuals who have been determined eligible for a mandatory Non-MAGI coverage type. Staff have significantly reduced the number of individuals with dual coverage as of Spring 2026. Please note that there are certain ME Codes that can run concurrently with other coverage. In order to reduce staff burden and improve efficiency, program staff will work with system staff to automate the manual processes that are done with this report to ensure dual coverage is closed in a timely manner. There is no estimated completion date at this time, but the DSS hopes to have some level of automation by December 31, 2027.

Finding 2025-003 Finding Type: Significant Deficiency in Internal Control Over Compliance Compliance Requirement: Procurement and suspension and debarment Corrective Action Planned Willamette Health Council will implement and document policies and procedures to verify that subrecipients and vendors are not excluded or disqualified prior to issuing subawards or contracts (and periodically thereafter; if deemed appropriate) consistent with the Uniform Guidance and 2 CFR §180.300. Person(s) Responsible • Josie Silverman-Méndez, Executive Director • Julie Bennett, Finance Manager Anticipated Completion Date • October 31, 2026

FINDING 2025-002: Waiting List Selections Condition The Housing Authority did not maintain documentation showing how preference criteria determined the participant's place on the waiting list. Corrective Action Plan The Housing Authority has purged the waiting list to obtain updated information from applicants. The Housing Authority is now utilizing its’ wait list management software to apply preference points (if applicable) to each applicant on the waiting list per the tenant selection policy. Name(s) of Contact Person(s) Responsible for Corrective Action: Jessica Oleson-Bue Anticipated Completion Date: Ongoing

Recommendation: We recommend, the Authority develop a process that all recertifications are reviewed by a different individual from the individual preparing the recertification. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The Authority will review processes in place to comply with HUD requirements. Name of the contact person responsible for corrective action: Georgia Crownhart Planned completion date for corrective action plan: December 31, 2026

Catholic Charities of Spokane will strengthen internal controls over compliance to ensure that all required eligibility, intake, exit, and program‑specific documentation is completed and reviewed prior to providing assistance and charging costs to federal awards. Corrective actions include the following: • Management has reassigned responsibilities to ensure that case management and supervisory staff are clearly accountable for completing and reviewing required documentation before assistance is released. • The organization has implemented enhanced supervisory review procedures, including documented review of participant files to confirm required documentation is complete prior to billing HUD funding. • Standardized documentation checklists have been implemented for Continuum of Care participant files to promote consistency and completeness of required records. • Targeted training has been provided to staff involved in program administration to reinforce HUD Continuum of Care documentation and eligibility requirements. • Management will perform periodic monitoring of participant files to verify ongoing compliance and to identify and remediate documentation issues on a timely basis.

Management Response Quinault Housing Authority agrees with the finding and has taken steps to strengthen itsprocedures for monitoring and documenting required annual inspections of occupied housing units. The Authority will maintain a centralized inspection tracking system identifying each occupied unit, the date of the most recent inspection, and the date the next annual inspection is due. The tracking system will be reviewed periodically by designated personnel to identify inspections that are approaching their due dates and to ensure that all required annual inspections are scheduled and completed timely. Management will also implement a secondary review of the inspection tracking system to verify that completed inspections have been properly documented and that any outstanding or overdue inspections are promptly addressed. These procedures are intended to ensure continued compliance with the Authority's Admission and Occupancy Policy and to reduce the risk that required annual inspections are inadvertently missed. Anticipated Completion Date September 17, 2026 Responsible Party Mariah Ralston

Noncompliant Eligibility Determinations - Literacy - OPI - The Montana Office of Public Instruction concurs with this finding. This issue was addressed in the prior audit. The grant ended shortly after completion of that audit, and there was no opportunity to change awarded amounts once the issue was identified. The previous superintendent agreed not to pull funds back. The matter has been corrected in the new grant that began in October 2024, and the issue does not appear to affect the new grant. Mechanisms have been implemented to ensure that only schools meeting eligibility requirements receive funds. Responsible Party - April Grady, Chief Financial Officer, Montana Office of Public Instruction Target Implementation Date - 12/31/2026

Inadequate Access and Privilege Controls - TANF - LIHEAP - CHIP - Medicaid - DPHHS - The Montana Department of Public Health and Human Services completed the development of its accounts matrix for the CHIMES eligibility system in October 2025 and implemented an enhanced process for conducting and documenting access reviews, including verification of user permissions. These improvements have been fully incorporated into routine operations, and the department has implemented all aspects of the audit recommendations. Responsible Party - Brenda Crawford, Internal Control and Compliance Officer, Montana Department of Public Health and Human Services Target Implementation Date - 10/24/2025

Inadequate Manual Override Controls - TANF - DPHHS - The Montana Department of Public Health and Human Services implemented a business process in its eligibility system (CHIMES) on May 5, 2026, and revised it on August 25, 2026, to address common override reasons and to document the basis for each override. Effective August 19, 2026, staff added a targeted question to the monitoring tool regarding manual overrides and issuances to ensure these items are consistently reviewed. The department considers this corrective action implemented and will evaluate its effectiveness during the upcoming monitoring cycle. Responsible Party - Brenda Crawford, Internal Control and Compliance Officer, Montana Department of Public Health and Human Services Target Implementation Date - 8/25/2026

Inadequate ACF-199 Reporting Controls - TANF - DPHHS - The Montana Department of Public Health and Human Services implemented additional internal controls over the ACF-199 reports in December 2024 and completed this corrective action. This implementation was in response to the prior audit, and the corrective action plan should have been included with that audit. The timing of the implementation occurred between the prior audit and the current audit period. Responsible Party - Brenda Crawford, Internal Control and Compliance Officer, Montana Department of Public Health and Human Services Target Implementation Date - 12/31/2024

Inaccurate ACF‑204 Reporting Controls - TANF - DPHHS - The Montana Department of Public Health and Human Services revised its instructions and implemented a mandatory review checklist on August 26, 2026. The updated process includes enhanced review steps and requires formal sign-off by both the program manager and the Temporary Assistance for Needy Families (TANF) unit designee prior to final report submission to ensure data accuracy. Responsible Party - Brenda Crawford, Internal Control and Compliance Officer, Montana Department of Public Health and Human Services Target Implementation Date - 8/26/2026

Inadequate Procurement Documentation - HPC - MDT - The Montana Department of Transportation has developed a tracking spreadsheet for independent cost estimates and will continue to provide reminders and training through 2026. The department will update its procedures to ensure documentation for suspension and debarment checks and cost estimates is retained in consultant files. Responsible Party - Kimberly Doherty, Accounting Systems Supervisor, Montana Department of Transportation Dustin Rouse, Chief Engineer, Montana Department of Transportation Target Implementation Date - 12/31/2026

Untimely Eligibility Determinations - CHIP - Medicaid - DPHHS - The Montana Department of Public Health and Human Services prioritized safeguarding continuous coverage for eligible Montanans during the unwinding period while working to minimize delays for new applicants. No questioned costs were identified in connection with this finding, underscoring that the issue was related to processing timeliness rather than improper payments. To ensure timely eligibility determinations going forward, the department implemented case-based processing in May 2026 that prioritizes cases based on aging and processing timelines, along with business processes to communicate with clients regarding necessary documentation for eligibility determinations. Responsible Party - Brenda Crawford, Internal Control and Compliance Officer, Montana Department of Public Health and Human Services Target Implementation Date - 5/15/2026

Erroneous Beneficiary Payments - CHIP - DPHHS - The Montana Department of Public Health and Human Services does not concur. The department identified an interface issue with its contractor and promptly corrected the affected payments. The unadjusted claim amount totaled approximately $26,000 and affected 48 beneficiaries out of $146.6 million in total contractor‑paid claims during the audit period, representing approximately 0.018 percent of total claims paid. The department determined this amount to be immaterial to the fiscal year‑end financial statements. Had the amount been significant, the department would have corrected the affected payments before fiscal year‑end. The department worked with its contractor to resolve the interface issue, which was fully corrected in April 2026. Responsible Party - Brenda Crawford, Internal Control and Compliance Officer, Montana Department of Public Health and Human Services Target Implementation Date - N/A

Inaccurate COA Calculations - SFA - UM - The University of Montana – Missoula conducted additional review and provided supplemental documentation and clarification for the remaining sampled student records; however, one exception could not be fully resolved. The University is committed to strengthening its documentation, retention, and review processes to ensure that support for cost-of-attendance calculations and adjustments is consistently maintained, documented, and adequately substantiated going forward. Responsible Party - Morgan Hahn, Interim Financial Aid Director, University of Montana - Missoula Target Implementation Date - 12/31/2026