Corrective Action Plans

- Management concurs with the finding and has continued implementing corrective actions to strengthen financial reporting processes and internal controls. The Organization hired a Vice President of Finance and Director of Finance to provide enhanced leadership, accountability, and technical oversight of the finance function. Management implemented revised monthly closing procedures, including formalized month-end checklists, assigned account ownership responsibilities, enhanced reconciliation requirements, and quarterly monitoring procedures. In addition, the Organization engaged an external CPA firm to assist with strengthening month-end and year-end closing processes, improving reconciliation procedures, enhancing review protocols, and standardizing supporting documentation practices. Management continues to focus on improving controls over receivables, payables, inventory, grant accounting, and overall financial reporting processes to support ongoing compliance with GAAP requirements. Oversight of these corrective actions remains the responsibility of the Vice President of Finance and Director of Finance.

Finding: 2025-002 - Special Tests and Provisions: Uniform Relocation Act Condition Reported by the Auditor: OCGDLC did not assess whether the relocation provisions of 49 CFR Part 24 applied to the occupants of the property acquired with federal award funds, did not identify the occupants or retain occupancy records, and did not issue any notice required by 49 CFR 24.203. Corrective Action Planned: Ossining Community Garden of Dreams Legacy Center Inc. (OCGDLC) recognizes the importance of compliance with the Uniform Relocation Act (URA) and acknowledges the documentation and procedural concerns identified during the audit. The federally assisted property acquisition was completed on April 15, 2025. While the prescribed HUD relocation-related form was not utilized during the acquisition process, OCGDLC maintains that communication concerning the property's occupancy circumstances was conveyed to the seller, as reflected in the available transaction documentation. These communications demonstrate that occupancy considerations were addressed during the acquisition process, notwithstanding the absence of the specific form. Furthermore, to the best of OCGDLC management's knowledge and based on the information available, no displacement occurred as a result of the acquisition. OCGDLC has provided HUD with available documentation concerning the completed acquisition and occupancy circumstances. OCGDLC remains committed to ensuring that the documentation and communications surrounding the transaction are appropriately reflected in its federal grant records. OCGDLC will implement the following corrective measures: 1. Documentation of the Completed Acquisition: OCGDLC has maintained the existing acquisition records, including correspondence and documentation reflecting communications with the seller regarding occupancy, together with the supporting materials previously submitted to HUD. These records are maintained as part of OCGDLC's federal grant documentation. 2. Advance Confirmation of Federal Compliance Requirements: For any future federally assisted real property acquisition, OCGDLC will proactively request written guidance from HUD or the applicable federal awarding agency identifying all required forms, notices, certifications, supporting documentation, and applicable submission deadlines. OCGDLC will seek clarification regarding when each requirement must be completed, including any actions necessary before acquisition, during the transaction, or following closing. This process will supplement OCGDLC's internal compliance review and promote clear communication and coordination regarding federal requirements. These measures reflect OCGDLC's commitment to federal compliance while recognizing the distinction between the absence of a prescribed form and the documented communications that occurred during the acquisition. OCGDLC will continue to strengthen its compliance practices through advance clarification of applicable requirements and maintenance of supporting documentation. Anticipated Completion Date: Completed: Existing acquisition documentation, occupancy-related correspondence, and supporting materials have been maintained on file and provided to HUD. Effective Immediately: OCGDLC will proactively request written confirmation of applicable federal forms, notices, documentation requirements, and submission deadlines in advance of any future federally assisted real property acquisition. Name and Title of Responsible Official: Diana E. Lemon Chief Executive Officer & Co-Founder Ossining Community Garden of Dreams Legacy Center Inc.

Finding: 2025-001 - Equipment and Real Property Management Condition Reported by the Auditor: No property, hazard, or general liability insurance coverage was in force with respect to the real property acquired with federal award funds during the year ended December 31, 2025. Corrective Action Planned: Ossining Community Garden of Dreams Legacy Center Inc. (OCGDLC) acknowledges the auditor's finding and has taken proactive steps to address the insurance coverage deficiency identified during the audit period. OCGDLC previously engaged insurance brokers and relied upon third-party professionals to facilitate coverage for the federally funded property. Despite ongoing efforts and awareness among management and the Board of Directors, OCGDLC subsequently determined that coverage had not been formally bound. To remedy this matter, OCGDLC has engaged two additional insurance brokers to secure appropriate property, hazard, and general liability coverage. One broker has obtained an insurance quotation, and additional underwriting information requested by the carrier was submitted on October 9, 2026. OCGDLC continues to actively pursue coverage and obtain written confirmation that the policies have been bound. OCGDLC will implement the following corrective measures: 1. Insurance Verification: Require written confirmation that insurance coverage has been formally bound, including appropriate policy documentation, before considering coverage effective. This verification will ensure that OCGDLC does not rely solely on broker communications or assurances without confirmation that coverage is in force. 2. Insurance Procurement Escalation Protocol: Establish a formal escalation procedure for insurance procurement delays. If coverage cannot be secured within 60 days of initiating the procurement process, management and the Board of Directors will review the barriers and assess alternative options. If coverage remains unresolved within 90 days, OCGDLC will pursue additional qualified brokers, carriers, or other appropriate insurance solutions. These timelines represent escalation thresholds and do not delay ongoing efforts to secure coverage. 3. Annual Insurance Compliance Review: OCGDLC has secured property insurance, commercial general liability insurance, and professional liability insurance through Donn Gerelli Associates Insurance Agency, Inc., with coverage effective October 16, 2026, through October 16, 2027. Certificates of insurance were issued on October 23, 2026, confirming that coverage is in force. To ensure continued compliance with applicable federal award requirements, OCGDLC will conduct an annual review of insurance coverage, policy limits, exclusions, renewal dates, and applicable federal requirements. This review will begin at least 90 days before policy expiration to allow sufficient time for renewal, necessary coverage adjustments, or alternative insurance arrangements. OCGDLC will maintain documentation of active coverage, renewal confirmations, and communications with its insurance broker as part of its compliance records. These corrective measures address the previously identified insurance deficiency and strengthen OCGDLC's internal oversight through documented insurance verification, defined procurement escalation procedures, and proactive renewal monitoring. Anticipated Completion Date: October 16, 2026 - Completed: OCGDLC successfully secured and bound property, commercial general liability, and professional liability insurance coverage for the October 16, 2026, through October 16, 2027, policy period. October 23, 2026 - Completed: OCGDLC received certificates of insurance confirming active coverage for the insured property and organizational operations. Ongoing: OCGDLC will maintain continuous insurance compliance monitoring, with the next annual renewal review beginning no later than July 16, 2027. Name and Title of Responsible Official: Diana E. Lemon Chief Executive Officer & Co-Founder Ossining Community Garden of Dreams Legacy Center Inc.

The City will implement procedures to obtain, review, reconcile, and retain supporting documentation for all Federal award activity, including costs paid on the City's behalf by the Ohio Department of Transportation. Responsibility for monitoring and documenting these activities will be assigned to appropriate personnel, and management will review and reconcile the amounts reported on the Schedule of Expenditures of Federal Awards to the information provided by ODOT.

Finding Number: 2025-030 Finding Name: Inadequate Review of Recipient Agencies of the Food Distribution Cluster Program Finding Condition(s): The Illinois Department of Human Services (IDHS) did not adequately review the recipient agencies of the Food Distribution Cluster (FDC) program. Name of Contact Person(s): • Elizabeth Lusk, Social Services Program Planner – Illinois Department of Human Services, Family and Community Services • Kasey Reagan, Division Director – Illinois Department of Human Services, Family and Community Services Corrective Action(s): The IDHS’ program and fiscal officials will take steps to address the deficiencies noted, including collection of inventory records and appropriate reviews. Steps taken include the following: • The IDHS The Emergency Food Assistance Program (TEFAP) will include the requirement that an annual inventory count and reconciliation of inventory records be submitted for all recipient agencies at the end of each State fiscal year in the SFY27 Procedure Manual. Contract exhibits and the procedure manual has been updated, approved by leadership, and all providers have been notified. (Completed as of 07/01/26) • Five of the seven food banks have submitted annual inventory counts. The IDHS’ receipt of inventory is based on individual food bank annual count schedule. The TEFAP is in the process of reviewing and reconciling those count that have been received. The final due date for the last two food banks is 08/28/26. Reconciliations will be completed by 09/15/2026 and then the IDHS will finalize its documentation. (Proposed Completion Date: 10/31/26) • The IDHS has implemented a Risk-Based Evaluation System to determine when management evaluation/quality assurance monitoring will be conducted. Previously, the monitoring schedule was based on every four years. This has been updated. (Completed as of 03/01/26) Proposed Completion Date: October 31, 2026

4. 2025-004 – Equipment and Real Property Management – Material Weakness in Internal Controls over Compliance and Instance of Noncompliance Recommendation The auditors recommend the University update their equipment tracking system to allow the University to identify assets purchased with federal money. In addition, the auditors recommend the University perform a physical inventory of its fixed asset at least once every two years. Planned corrective actions: Heritage University agrees with the recommendation and recognizes the need to strengthen its processes surrounding the identification, tracking, and monitoring of federally funded equipment. The University is assessing its current practices, records, and systems to better understand existing gaps and determine an appropriate and sustainable process moving forward. This work will include reviewing how federally funded equipment is identified and tracked, clarifying responsibilities across departments, and evaluating opportunities to improve coordination and documentation throughout the lifecycle of an asset. The Office of Sponsored Programs, in collaboration with the Business Office and other affected departments, will assist in developing and documenting appropriate procedures as this assessment progresses. The University will prioritize improvements based on identified risk, available resources, system capabilities, and applicable federal and award requirements. Management recognizes that strengthening this process will require a phased approach and will continue to evaluate and implement improvements as the University's equipment records, processes, and internal controls are reviewed. Name of Responsible Party: Yesenia Rodriguez, Rachel Castilleja, Sagrario Armenta Jimenez, Joanne Fernandez, Aaron Krantz Anticipated completion date: In Progress

Finding No.: 2025-014 Federal Agency: U.S. Department of Education AL Program: 84.425 Education Stabilization Fund 84.425X American Rescue Plan – Outlying Areas State Educational Agency (ARP-OA-SEA) Federal Award No.: S425X210003 Area: Equipment and Real Property Management Questioned Costs: $5,268 Views of Auditee and Corrective Actions GDOE agrees with the finding. The finding identified that the acquisition cost for Asset No. 103192, a PIONEER 48,000 BTU A/C split unit, was recorded in the property record as $5,268.00 instead of the supported invoice cost of $4,684.05. The asset record was corrected on August 25, 2026, to reflect the verified acquisition cost. Receiving and Property Management acknowledge the importance of ensuring that property records are complete, accurate, and supported by appropriate source documentation in accordance with 2 CFR 200.313(d). The incorrect acquisition cost resulted from the inconsistent submission of supporting documents to the Receiving Warehouse Supervisor, which created unclear guidance regarding the correct acquisition cost to be recorded. Plan of action and completion date: Asset No. 103192 was corrected in the property record from $5,268.00 to the verified invoice cost of $4,684.05. The correction was completed on August 25, 2026. Plan to monitor and responsible officials: The Receiving Warehouse Supervisor II will ensure that all required supporting documentation is received and reviewed before approving the Receiving Report for submission to the Property Management Office. The review will include verification of the quantity received, unit acquisition cost, asset description, and other information necessary to properly identify and record the asset. The Receiving Warehouse Supervisor II, Inventory Management Officer, Property Control Officers, and Supply Management Administrator will be responsible for implementing and monitoring corrective actions.

Finding No.: 2025-012 Federal Agency: U.S. Department of Education AL Program: 84.403 Consolidated Grants Federal Award No.: S403A230002 Area: Equipment and Real Property Management Questioned Costs: 3,095 Views of Auditee and Corrective Actions GDOE agrees with the finding. The finding identified that the acquisition cost for asset no. 103166, a Motorola APX 4000 radio, was recorded in the property record as $3,095.00 instead of the supported invoice cost of $1,319.14. The asset record was corrected on August 26, 2026, to reflect the verified acquisition cost. GDOE acknowledges the importance of ensuring that property records are complete, accurate, and supported by appropriate source documentation in accordance with 2 CFR 200.313(d). The following corrective action plan addresses the finding and strengthens the review of asset costs from receipt through final entry into the property records. Plan of action and completion date: Asset No. 103166 was corrected in the property record from $3,095.00 to the verified invoice cost of $1,319.14. The correction was completed on August 26, 2026. Plan to monitor and responsible officials: The Receiving Warehouse Supervisor II will review the purchase order, vendor invoice, and related receiving documentation before approving the Receiving Report for submission to the Property Management Office. The review will include verification of the quantity received, unit acquisition cost, description, and other information necessary to properly identify the asset. The Receiving Warehouse Supervisor II, Inventory Management Officer, Property Control Officers, and Supply Management Administrator will be responsible for implementing and monitoring corrective actions.

Finding 2025-002: Comments on the Finding and Each Recommendation During prior years, the Board of Directors disbursed funds from the replacement reserve to fund development of other housing developments. Effective June 10, 2022, the Board of Directors entered into a repayment agreement with HUD to return funds to the Corporation. The agreement required $5,400, $4,200, and $3,000, all respectively, to be returned to the Corporation during the years ended December 31, 2025, 2024 and 2023. The Board of Directors returned $0, $1,400, and $250, all respectively, during the years ended December 31, 2025, 2024, and 2023. At December 31, 2025, 2024, and 2023, the Board of Directors owes $53,350, $53,350, and $54,750, all respectively, to the Corporation. The Board of Directors should replace the funds that were disbursed from the reserve for replacements without HUD approval in accordance with the repayment agreement entered into with HUD on June 10, 2022. Action(s) taken or planned on the finding Management and the Board of Directors concur with the finding and the auditor's recommendation. The Board of Directors is working on making the delinquent deposits for 2023, 2024, 2025, and all future deposits as required in the repayment agreement entered into with HUD on June 10, 2022.

Finding 2025-09 Equipment and Real Property Management: Lack of Documentation Supporting Physical Inventory Counts – Significant Deficiency in Internal Control Over Compliance; Planned Corrective Action Plan: APU will establish a documented process for physical inventory of federally funded equipment at least once every two years. Results of the physical inventory will be reconciled to the University's property records, discrepancies will be investigated and resolved, and documentation of the inventory and reconciliation will be retained.; Anticipated Completion Date: July 1, 2027

Finding 2025-002 Finding type: Significant deficiency. Condition: Downstreet purchased a new property for approximately $5 million and did not record the asset in its general ledger. Additionally, receipts of grant funding were recorded as a reduction in construction-in-progress of approximately $1.38 million rather than an asset and related grant revenue. As a result, property, plant and equipment assets and grant revenue were understated. Management concurrence: Management concurs with this finding. Corrective action plan: Downstreet Housing & Community Development will implement a formal reconciliation and review process for property acquisitions and development activity. For each acquisition or significant development project, Finance will obtain and review the closing documents, development records, funding agreements, grant activity, and construction-in-progress detail to identify all transactions that must be recorded in the general ledger. Property acquisition costs, subsequent improvements, construction-in-progress, related liabilities, and grant revenue will be reconciled to the development project records at key project stages and as part of the year-end closing process. A supervisory finance official will review the reconciliation and supporting documentation to verify that property costs and related funding have been recorded completely, accurately, and in the appropriate accounts and accounting period. Projected completion date: December 31, 2026 Responsible official: Schuyler Anderson, CFO/COO

Finding 2025-001 (ALN 93.889) The Organization did not have sufficiently designed internal controls to ensure that property records are retained in accordance with Section 200.313(d)(1) and (2). This is a repeat finding (2024-005) Management Response: Management agrees with the finding and will ensure that the enhanced procedures and monitoring controls already in place are consistently followed to ensure that equipment acquired with Federal grant funds is accurately recorded, properly tracked, and supported by property records that are maintained and retained in accordance with 2 CFR § 200.313(d)(1) and (2). The Program team is responsible for ensuring that physical inventories are conducted at least every two years, reconciled to the applicable property records, and that any discrepancies identified are investigated and resolved in a timely manner. These corrective actions will strengthen internal controls over federally funded equipment and support continued compliance with applicable Federal requirements. Contact Person(s) Responsible for Corrective Action: Steve Baron, Program Manager Anticipated Completion Date: December 31, 2026

U.S. Department of Homeland Security Emergency Operations Center Assistance Listing Number: 97.052 Passed Through Minnesota Department of Public Safety Pass Through Number: EMC-2024-EO-05011 Award Period: September 1, 2024 – August 31, 2027 Recommendation: We recommend the City establish a formal policy over the Build America, Buy America Act domestic content procurement preference that includes identifying whether a federal award is subject to BABAA requirements, classifying each item to be incorporated into the project as an iron or steel product, a construction material, or a manufactured product, determining the applicable domestic content standard for each classification, and obtaining and retaining vendor certifications supporting compliance prior to incurring costs. We further recommend the City include Buy America contract provisions in all agreements associated with federally funded infrastructure projects and request and obtain any necessary waivers from the federal awarding agency in advance of procurement. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The Emergency Operations Center project was bid and awarded as part of a larger public safety facility construction project. Bid award dates for the construction contracts ranged from November 2023 through March 2024, and construction was underway prior to the City's receipt of the federal award, which carried an effective date of September 1, 2024. Because the construction agreements were executed before the City received the federal award, the agreements did not incorporate Buy America contract provisions, and domestic content certifications were not requested from vendors at the time of procurement. Upon identifying the applicability of the Build America, Buy America Act requirements to the award, the City submitted waiver requests for items subject to the domestic content procurement preference. Those requests remain pending and had not been approved as of the date of the auditor's report. The City is continuing to work with the Minnesota Department of Public Safety and the federal awarding agency to obtain a determination on the pending waiver requests and will provide any additional documentation requested in support of those submissions. Management will develop and adopt a written policy addressing the domestic content procurement preference. The policy will require staff to determine at the time of award acceptance whether a federal award funds an infrastructure project subject to BABAA, to classify each item to be incorporated into the project under the applicable domestic content standard, to include Buy America contract provisions in all solicitations and agreements associated with federally funded infrastructure projects, and to obtain and retain vendor domestic content certifications prior to incurring costs. Where compliance cannot be achieved, the City will submit a waiver request to the federal awarding agency in advance of procurement. Name of the contact person responsible for corrective action: Noel Graczyk, Administrative Services Director Planned completion date for corrective action plan: December 31, 2026

FINDING 2025-021 Finding Subject: Education Stabilization Fund – Equipment and Real Property Management Contact Person Responsible for Corrective Action: Darice Austin-Phillips, Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, daustin@sbcsc.k12.in.us , atahmid@sbcsc.k12.in.us, mjohns2@sbcsc.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Physical Asset Inventory: Enforced a capital asset inventory program starting June 2025. An independent vendor tags and inventories all capital assets costing $5,000 or more. CFR Compliance: Updated IC procedures to meet 34 CFR § 80.32 rules, requiring complete property records, a mandatory physical inventory at least once every two years, safeguard systems against theft/loss, and proper disposition procedures Anticipated Completion Date: Grant Ended: December 2025 IC Updates: January 1, 2025

2025-002 Policies and Procedures for Food Inventory Management Corrective action planned: Anticipated completion date: Contact person responsible for corrective action: Pmtners INW will formalize the procedures we have in place as a Board approved policy. The policy will cover the treatment for all types of inventories, including federal non-cash programs. We will provide a draft policy to the Financial Committee at the 9/22 meeting prior to board-wide approval afterward. The policy will be acknowledged at least annually and after key staff turnover. Target: 9/24/2026 Justin Carlile JustinC@partnersinw.org

UNIFORM GUIDANCE AUDIT REPORTING REQUIREMENTS Federal Agency: Department of Transportation Federal Program: Formula Grants for Rural Areas and Tribal Transit Program Assistance Listing Number: 20.509 Federal Award Identification Number and Year: MN-2020-020-01, MN-2023-045-00 Pass-Through Agency: Minnesota Department of Transportation Pass-Through Number: MN-2020-020-01, MN-2023-045-00 Award Period: Year Ended December 31, 2025 Compliance Requirement: Property and Equipment Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Recommendation: Equipment acquired under federal awards needs to have proper maintenance of records including description, source of funding, who holds title, acquisition date, cost, percentage of Federal agency participation in the cost, location, use and condition, and any disposition data. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Transit Board will continue to work on the maintenance of records for property and equipment acquired under federal awards. Name of the contact person responsible for corrective action: Kathy Schultz, Executive Director Planned completion date for corrective action plan: June 30, 2027

FINDING 2025-003 Finding Subject: Water and Waste disposal Systems for Rural Communities – Equipment and Real Property Management Contact Person Responsible for Corrective Action: Timothy Detrick Contact Phone Number and Email Address: 765-754-7285 treasurer@townoffrankton.in.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The Town began maintaining a capital asset listing during the audit period. SBOA provided clarification on the required components of the listing and helped ensure we understood which items should be included. As I am still relatively new to the position, I have been learning the proper requirements and classifications. I am now familiar with all required fields and have updated the capital asset listing accordingly. Anticipated Completion Date: September 2026 INDIANA

FINDING 2025-002 Finding Subject: Economic Development Cluster - Reporting Contact Person Responsible for Corrective Action: Tracy McGinnis Contact Phone Number and Email Address: tmcginnis@richmondindiana.gov 765-983-7222 Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Management will ensure that the preparation and review internal controls process has been changed will be followed and thoroughly documented to detect and prevent material misstatements to the Revolving Loan Fund (RLF) reports. Anticipated Completion Date: The Controller and Deputy Controller and will review all current and past due reports and uploads to the appropriate site. The corrective action will take place immediately (Sept 2026). Note: the monthly reports are completed with each monthly receipts and closeouts and future reporting of the ED-209 will be processed and uploaded by the Deputy Controller bi-annually.

Name of Auditee: Town of Potsdam, New York Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: Year ended December 31, 2025 CAP Prepared by: Marty Miller, Supervisor Telephone: (315) 265-4310 (2) Finding 2025-002 Management’s Response: Management will establish a capitalization threshold and take an initial inventory of its capital assets for the purpose of creating a capital asset subsidiary ledger for accounting and financial reporting purposes. Person Responsible for Corrective Action: Marty Miller, Town Supervisor Anticipated Completion Date: December 31, 2026

Audit period: January 1, 2025 to December 31, 2025 The finding from the December 31, 2025, schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the numbers assigned in the schedule. FINDINGS—FINANCIAL STATEMENT AUDIT FINDING: 2025-001 Community Project Fund - Annual Real Property Reporting Recommendation: We recommend that the Borough implement a procedure to ensure that required reports are completed accurately and timely. The procedures should include assignment of responsibility, supervisory review, and retention of evidence supporting the timely submission of the SF-429 Cover Page and Attachment A with the applicable annual performance report. Action taken: The SF-429 form for 2025 was submitted retroactively to HUD to be included with the semi-annual report. The SF-429 form will also be submitted for the second and final year of the grant in the 2026 semi-annual report. All grant reporting will be thoroughly reviewed prior to submission and cross referenced with grant reporting guidance documents. If the United Stated Department of Housing and Urban Development has questions regarding this plan, please contact Mary Ellen Ramage at 412-781-0569 Sincerely yours, Mary Ellen Ramage Borough Manager Borough of Etna, Allegheny County, Pennsylvania

Finding # 2025-002 Type: Significant deficiency Type: Immaterial noncompliance over equipment and real property management Assisting Listing Number: 14.251 Federal Agency: Department of Housing and Urban Development Name of Federal Program: Economic Development Initiative Finding: During testing of property purchased with federal funds, the Organization was unable to provide a comprehensive property record demonstrating the tracking and monitoring of federally funded assets. Recommendation: Management should develop and implement formal procedures for tracking and monitoring property acquired with federal funds. Corrective Action: Management agrees with the finding and will implement a formal property management process. The Organization will establish a centralized inventory of all equipment purchased with federal funds, perform periodic physical inventories, and implement management review procedures to ensure compliance with Uniform Guidance equipment management requirements. Responsibility for maintaining the inventory and monitoring compliance will be assigned to designated personnel. Anticipated Completion Date July 2026

FINDING 2025-003 Finding Subject: Water and Waste Disposal System for Rural Communities - Equipment Contact Person Responsible for Corrective Action: Amy Crull Contact Phone number and Email Address: 765-866-0111 and newmarket.in8@gmail.com Views of Responsible Officials: We concur with the finding Description of the Corrective Action Plan: We will work at getting the right information into the right records and make sure everything is reported in the places it needs to be. The Town will ensure a detailed breakdown of assets related to its Sewer Construction project is included in its asset records and all required information is contained therein. This will be done with the help of the Town CPA/Consultant. Anticipated Completion Date: December 31,2026 INDIANA STATE

Federal Agency Name: Department of Homeland Security Pass-Through Entity: State of Wyoming Federal Emergency Management Assistance Listing Number: 97.036 Program Name: Disaster Grants – Public Assistance Finding Summary: Materials were charged out of inventory in the general ledger at a later date than when the items were actually pulled from inventory for the work order. Management did not detect or correct the differences in average cost. Corrective Action Plan: Since that time, we have implemented an improved barcoding process that allows line crews to charge materials directly as they are pulled for use in the field. Crews can access the system using their iPads, phones, or computers, allowing material transactions to be recorded and transmitted directly to our financial software at the time the materials are issued. This process provides more timely and accurate recording of material usage and reduces the need for manual entry. During the reconciliation of the work orders established to track costs associated with the natural disaster, we identified several materials that had been charged incorrectly and made the necessary corrections. Because inventory is maintained using an average-cost method, the average cost of certain materials had changed by the time the corrections were processed. Although adjustments were made to account for these cost differences, we subsequently determined that not all amounts were fully adjusted. The items identified through the reconciliation process have since been reviewed and corrected. Responsible Individuals: Ryan Gross, VP of Accounting and Finance, and Karri Blasi, Controller Anticipated Completion Date: January 2026 (Barcoding was fully implemented)

Inadequate Subrecipient Equipment Use and Disposal Procedures - Transit - MDT - The Montana Department of Transportation concurs with the finding. A. The department will continue enhancing its disposal procedures. The Transit Section is now fully staffed and is working through the backlog of disposition requests, which is expected to be resolved by the end of calendar year 2026. A system issue that prevented the disposition vehicle report from capturing all submitted vehicles was corrected with the June 2025 BlackCat update. The Transit Section was aware of vehicle records requiring a full audit and continues to work on this project. B. Disposal instructions have been prepared and are available in BlackCat for subrecipients to reference. C. The Transit Section will continue working through the inventory cleanup and expects to complete this work by the end of state fiscal year 2027. This cleanup is being conducted in conjunction with the migration from BlackCat to the B2G platform. Responsible Party - Kimberly Doherty, Accounting Systems Supervisor, Montana Department of Transportation Target Implementation Date - 6/30/2027

Noncompliant Equipment and Construction Controls – ESSER – OPI - The Montana Office of Public Instruction notes that the grant is closed and the temporary grant-funded staff are no longer with the agency. Moving forward, new grant managers will have better direction on the agency’s internal controls. Responsible Party - April Grady, Chief Financial Officer, Montana Office of Public Instruction Target Implementation Date - 9/30/2026