Corrective Action Plans

Hamilton County Job and Family Services (HCJFS) has implemented a review procedure to monitor and ensure that federal earmarking requirements are met and has utilized it for several program years. The HCJFS review procedure was utilized during Program Year 2024 (7/1/24 to 6/30/25), as shown in the spreadsheet listed below, to ensure that no less than 20 percent of Youth Activity funds allocated to the local area, except for the local area expenditures for administration, must be used to provide paid and unpaid work experiences as addressed in 29 USC 3164(c)(4). HCJFS typically tracks Work Experience spending across a program year and not a calendar year, but these tools can be adjusted to accommodate the tracking of calendar year spending. This tool will allow HCJFS to closely monitor to ensure these requirements are met and determine when corrective action needs to be taken with the provider to increase Work Experience spending.

Federal Program / Assistance Listing Number (ALN) 84.031 Finding Reference Number 2025-005 1. Finding Summary The auditor noted exceptions in payroll cost allocations and time and effort reporting in testing over the Title III program. 2. Management's Position Management agrees with the finding. Management Explanation Management agrees with the finding and acknowledges that the exceptions related to two (2) Title III employees who need additional training on how to properly complete the relevant forms. 3. Root Cause Analysis The root cause was a gap in understanding of how the time and effort form should be completed and how the payroll cost allocation change should be documented on the personnel action form. 4. Corrective Action(s) Management will offer training on the completion of time and effort reports as well as work with Human Resources to ensure all payroll allocations are actually reflected on hiring documents. Description of Corrective Actions To address this finding and prevent recurrence, the University will strengthen procedures to ensure payroll allocations are supported by approved personnel records and reconciled to certified time and effort documentation. These procedures and reporting controls will be routinely evaluated and reinforced through staff training and management oversight to support sustained compliance and accurate federal reporting. 5. Risk Mitigation (Required - Even if Disagreeing) The University institution recognizes the importance of accurate documentation to support payroll allocations. Accordingly, the corrective actions described above are designed to ensure adequate training and review to ensure compliance and accurate reporting. 6. Responsible Party • Office/Department: Title III Office • Title of Responsible Official: Interim Title III Director • Name (optional): ____________ _ 7. Implementation Timeline • Corrective action implemented: D Yes ~ No • If not fully implemented, expected completion date: December 31, 2026 8. Status of Corrective Action (For Prior-Year or Repeat Findings) D Fully implemented D Partially implemented D Not yet implemented Evidence of Implementation In progress, evidence is not yet available. 9. Monitoring and Sustainability The University will monitor compliance through ongoing supervisory review of payroll allocations and time and effort reports. Review procedures will be routinely evaluated and reinforced through staff training and management oversight to support sustained compliance and accurate federal reporting.

CORRECTIVE ACTION PLAN September 24, 2026 U.S. Department of Housing and Urban Development St. John’s Health Care Corporation respectfully submits the following corrective action plan for the year ended December 31, 2025. Name and address of independent public accounting firm: Bonadio & Co., LLP 171 Sully’s Trail Pittsford, NY 14534 Audit Period: January 1, 2025 - December 31, 2025 The findings from the December 31, 2025, schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the number assigned in the schedule. FINDINGS – FEDERAL AWARD PROGRAMS AUDIT FINDING 2025-001: Section 232, CFDA 14.129 Recommendation: Adhere to the HUD regulatory agreement in relation to obtaining prior written approval from HUD before encumbering the Project. Action Taken: The Home executed these transactions as a prudent business decision to meet operating expenses and improve the facility to promote enhanced revenue generation. The Home has implemented procedures to ensure that prior written approval is obtained from HUD before encumbering the Project in the future. If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call Sabrina McLeod at (585)-760-1401. Sincerely yours, _______________________________ Sabrina McLeod Chief Financial Officer

Finding Number 2025-227: The Division does not have documented control procedures in place to ensure compliance with period of performance requirements for the Rehabilitation Services-Vocational Rehabilitation Grants to States. Federal Program: 84.126 - Rehabilitation Services - Vocational Rehabilitation Grants to States Related to Prior Finding: N/A Agency’s view: The agency agrees with this finding. IDVR acknowledges that the controls during the audit period were insufficient to ensure expenditures were consistently allocated to the correct federal award period. Corrective Action: Since November 2025, IDVR has implemented a comprehensive period-of-performance review process designed to ensure compliance with federal grant requirements. As part of this process, the Strategic Leadership Team reviews and determines when obligations should transition between federal fiscal year awards. Based on this direction, IDVR Data Manager updates system configurations and budget parameters within the AWARE case management system to ensure expenditures are assigned to the correct federal award. In addition, IDVR implemented a testing process in which the Data Manager and Program Analyst verify that expenditures are coding appropriately following budget updates. IDVR has also incorporated period-of-performance reviews into its quality assurance and compliance review process for case service expenditures. Invoice batches are reviewed before liquidation, or reimbursement requests are submitted to ensure expenditures are allocated to the proper grant award. These reviews are conducted by Quality Assurance and Compliance Analysts, Financial Specialists, the Financial Officer, and, when appropriate, Agency leadership, including the Deputy Administrator and Administrator. Through these layered review processes, IDVR has established documented internal controls designed to ensure compliance with period-of-performance requirements and has successfully utilized these controls since implementation as evidenced by approved RSA reimbursements of expenditures based upon both period of performance and allowability reviews completed by RSA on all expenditures reimbursed as required under route payment that IDVR has been engaged in with RSA since October 2024. IDVR is in the process of obtaining approval from RSA within drafted Grant’s Management Chapters for the policies, procedures and internal controls related to assurances of proper grant assignment based upon period of performance. Once approval is provided, IDVR will finalize, implement, and train on the approved policies, procedures, and internal controls that align with processes already in practice as of November 2025. Anticipated Corrective Action Date: January 30, 2027 Responsible for Corrective Action: Heidi Smith, Financial Officer Heidi.Smith@vr.idaho.gov (208) 287-6457

Finding Number 2025-226: The Division did not comply with Matching, Level of Effort, and Earmarking requirements for the fiscal year 2023 grant of the Rehabilitation Services-Vocational Rehabilitation Grants to States. Federal Program: 84.126 - Rehabilitation Services - Vocational Rehabilitation Grants to States Related to Prior Finding: N/A Agency’s view: The agency agrees with this finding. It is closely related to the historical reporting issues identified through the forensic review and restatement process described above. Corrective Action: IDVR has completed significant work to increase internal controls through the development of policies, procedures, and internal controls included in IDVR’s Grants Management Manual. RSA has approved several of the policies, procedures, and internal controls as they relate to these processes to ensure adequate SLT level planning and decision making is occurring and documentation is available to support the grants Matching, Maintenance of Efforts, and obligation requirements. Further GMM chapters related to this finding will be re-submitted to RSA for approval with IDVR’s next CAP submission due 10/30/2026. Once policies are approved by RSA for implementation they will be finalized, trained, and implemented by IDVR. To strengthen compliance moving forward as these areas are assessed at the State level, IDVR and ICBVI have also increased the frequency of collaborative financial planning meetings from bi-monthly to monthly, with notes taken, as of September 2026 as these three elements are reported and assessed at the statewide level. In addition, the IDVR Strategic Leadership Team conducts at least monthly reviews of matching, MOE, and Pre-ETS spending to assess progress, identify potential risks, and implement timely corrective measures when necessary and maintains agendas of these meetings to assure record retention for these reviews and decision points as of August 2026. These monitoring activities will continue as implemented and are intended to ensure more proactive management of federal fiscal requirements and reduce the likelihood of future compliance concerns in these areas. Anticipated Corrective Action Date: January 30, 2027 Responsible for Corrective Action: Heidi Smith, Financial Officer Heidi.Smith@vr.idaho.gov (208) 287-6457

Finding Number 2025-225: The Division could not provide supporting documentation for amounts reported on the Rehabilitation Services Administration (RSA) reports required under the Rehabilitation Services-Vocational Rehabilitation Grants to States. Federal Program: 84.126 - Rehabilitation Services - Vocational Rehabilitation Grants to States Related to Prior Finding: N/A Agency’s view: IDVR agrees that retention of supporting documentation aligned with the RSA-17 report submitted to RSA is necessary to ensure adequate documentation of the completed reports is created and maintained to support the submission. Corrective Action: IDVR has completed significant work to complete restatements of the RSA-17 for FFY2019-2024. These restatements have been accepted by the RSA Fiscal Unit and the reports were updated in RSAMIS by RSA after this process was completed in Spring 2026. With the restatement, RSA and IDVR have accepted the data based on an extensive third-party forensic review of IDVR’s financial records for these timeframes. IDVR is currently in the process of submitting the policy, procedures, and internal controls to RSA regarding the federal reporting of the RSA-17 required data elements. The fiscal staff have also worked extensively to ensure all future RSA-17 reports include supporting documentation that have been extracted from Luma and this process has been implemented as of February 2026. Once RSA approves the IDVR RSA-17 policy, procedures, and internal controls IDVR will adopt, train, and implement these documents as standard practice and will complete all future reports in accordance with the outlined controls and maintain the supporting documentation as outlined in the policy. Anticipated Corrective Action Date: January 30, 2027 Responsible for Corrective Action: Heidi Smith, Financial Officer Heidi.Smith@vr.idaho.gov (208) 287-6457

Finding Number 2025-224: The Department overstated federal grant expenditures on the Schedule of Expenditures of Federal Awards (SEFA) closing package. Federal Program: 21.027 – Coronavirus State and Local Fiscal Recovery Fund Related to Prior Finding: N/A Agency’s view: The department agrees with the finding and asserts that it was a one-of-a-kind error in the timing of recording of one expenditure transaction. The error went undetected for a few months during the very confusing and difficult Luma transition year. When staff detected the error they believed the expenditure was still required to be reported on a SEFA and the only option available was to report it in FY 2025. Corrective Action: Staff have already completely familiarized themselves with the guidance on “New Requirement for Wire Payment Requests” issued by SCO on October 6, 2025. We are confident that our understanding of these new procedures will prevent any future occurrence. Anticipated Corrective Action Date: September 28, 2026 Responsible for Corrective Action: Steve Martin, Financial Officer Steve.Martin@idpr.idaho.gov (208) 869-4120

Finding Number 2025-220: Payroll adjustments lacked sufficient internal controls. Federal Programs: 93.777 - State Survey and Certification of Health Care Providers and Suppliers (Title XVIII) Medicare 93.778 - Grants to States for Medicaid 93.958 - Block Grants for Community Mental Health Services Related to Prior Finding: 2024-234 Agency’s view: The agency agrees with the finding. Corrective Action: Updated ISD interface training and procedure documents. The ISD interface protocol has been revised to specifically address the required approval process for corrections. Updated training educates Financial Specialists on the proper procedures and reinforces the requirement to obtain documented approval via email before any corrections are interfaced. The Training documents also stress the importance of attaching the documents to the system to maintain proper records of such approval. Refresher training was also provided for all analysts. Expected outcome: These actions establish consistent, documented approval control for ISD corrections, and ensure that email approval evidence is retained with each transaction. Anticipated Corrective Action Date: June 30, 2026 Responsible for Corrective Action: Brooke Jenkins, Financial Specialist, Principal Brooke.Jenkins1@dhw.idaho.gov (208) 334-5500

Finding Number 2025-216: The Department understated federal expenditures on the Children's Health Insurance Program (CHIP) CMS-21 Base Reports by $1,088,209. Federal Program: 93.767 - Children's Health Insurance Program Related to Prior Finding: N/A Agency’s view: The agency agrees with the finding. Corrective Action: During the FFY 2026, Quarter 1 CMS-21 reporting cycle, the Medicaid Budget Team identified underreported indirect expenditures for State Fiscal Years 2024 and 2025. The discrepancies were traced to initial reporting issues following the LUMA system go-live in July 2023, which resulted in indirect expenditures not being incorporated into the CMS-21 reporting process. To address the underreporting, the Medicaid Budget Team entered prior-period adjustments on CMS 21P forms to claim the eligible expenditures for the affected eight quarters, consistent with applicable CMS reporting requirements. To strengthen internal controls and prevent recurrence, the Medicaid Budget Team developed a new report that automatically incorporates indirect expenditures into the CMS-21 workpapers. This automated process reduces the risk of indirect expenditures being omitted and provides additional control to improve the completeness and accuracy of future CMS-21 reporting. Included is the CMS 21 Summary Sheet which shows the consolidation of the prior period adjustments make to claim all identified expenditures that had been omitted (line 2). Anticipated Corrective Action Date: October 1, 2025 Responsible for Corrective Action: Erica Williams, Financial Specialist Principal Erica.Williams@dhw.idaho.gov (208) 334-5500

Finding Number 2025-215: The Department did not meet the Mental Health Block Grant (MHBG) earmarking requirement for evidence-based programs addressing early serious mental illness. Federal Program: 93.958 - Block Grants for Community Mental Health Services Related to Prior Finding: N/A Agency’s view: The Idaho Department of Health and Welfare (DHW) agrees with the finding. DHW consulted with the Substance Abuse and Mental Health Services Administration (SAMHSA) Grants Project Officer (GPO) regarding the Early Serious Mental Illness (ESMI) earmarking requirement, including how the requirement is calculated, the flexibility available for meeting the requirement, and the potential impact on future Mental Health Block Grant (MHBG) funding. The GPO confirmed that the standard requirement is to expend not less than 10% of the MHBG award on evidence-based programs addressing ESMI. The GPO also confirmed that a State may elect the two-year option to expend not less than 20% of the ESMI set-aside by the end of the succeeding fiscal year. For Idaho's current grant period, this provides additional time to meet the expenditure requirement through qualifying ESMI activities. SAMHSA GPO Guidance The GPO further stated that if Idaho appropriately elects and documents the 20% two-year option, SAMHSA would not expect a penalty or negative impact on future MHBG funding. If the expenditure requirement is not met, unexpended ESMI set-aside funds cannot be drawn down and would revert to the Treasury. If ESMI set-aside funds are spent on non-ESMI activities, the amount used for those expenditures would need to be returned. This repayment requirement would not apply to other MHBG funds that were properly spent on allowable activities outside of the ESMI set-aside. The GPO also clarified that there is no separate waiver or exception process for the ESMI expenditure requirement beyond the 20% two-year flexibility. SAMHSA's MHBG closeout team will provide additional guidance regarding documentation expected at closeout to support use of the two-year flexibility. The GPO also clarified that no-cost extensions are not currently an option for the MHBG grant. The 10% ESMI earmark is calculated based on the total MHBG award amount for the grant period, not the amount drawn down or spent to date. Prior Monitoring Process DHW has historically used grant budget papers, LUMA financial system expenditure information, and spreadsheets to track ESMI expenditures; however, prior processes did not provide sufficient controls to ensure the required earmark was met. LUMA expenditure reporting and data processes have since been improved and are now used as part of the monitoring process. Improvements Already Implemented DHW has already taken steps to strengthen the monitoring of MHBG and ESMI expenditures. The MHBG team is developing an MHBG expenditure tracking tool to monitor expenditures at the program level and the amount needed to meet the ESMI earmark. The MHBG team also reviews LUMA expenditure data to monitor spending, identify issues or discrepancies, and determine whether additional follow-up is needed. The Finance and Budget Unit (FABU) updates the LUMA Data tab in the Realignment Project spreadsheet, and Grant Reporting posts the MHBG workpapers for review. The MHBG team reviews the expenditure information and MHBG workpapers and compares ESMI expenditures to the required earmark. The MHBG team also meets quarterly with internal partners to review MHBG grant activities, expenditures, reporting, progress made, and any challenges or concerns. These meetings provide an opportunity to discuss how the grant is progressing, identify potential issues, and determine whether additional follow-up is needed. For MHBG funding, the MHBG Team has implemented an annual Internal Funding Request process to provide a consistent process for requesting, reviewing, approving, and tracking MHBG funding. These improvements will be incorporated into the formal monitoring process outlined below and will continue throughout the grant period. Corrective Action: Idaho Department of Health and Welfare (DHW) will implement a formal process to monitor compliance with the Mental Health Block Grant (MHBG) 10% Early Serious Mental Illness (ESMI) earmarking requirement throughout each grant period. The Adult Mental Health (AMH) Program Manager will oversee implementation of the monitoring process, with review and oversight by the System Design and Implementation Bureau–Adult Behavioral Health (SDI-ABH) Chief and System Design and Implementation Programs Bureau Chief. The MHBG team, ESMI team, Grant Reporting, and Finance and Budget Unit (FABU) will each have defined responsibilities within the monitoring process. The corrective action will include the following steps: 1. Establish an ESMI expenditure tracking process. The MHBG team will develop and maintain an MHBG expenditure tracking tool to identify and track qualifying ESMI expenditures at the program level and compare the expenditure information to the required 10% earmark for the MHBG grant. FABU will maintain the expenditure information in the Realignment Project spreadsheet, and Grant Reporting will provide the MHBG workpapers through its established process. 2. Calculate the required earmark amount. At the beginning of each grant period, the MHBG team will calculate and document the amount required to meet the 10% ESMI earmark and the timeframe for meeting the requirement before the end of the grant period. 3. Monitor ESMI expenditures quarterly. FABU will provide the ESMI personnel costs monthly and continue to update the LUMA Data tab in the Realignment Project with the expenditure information. Grant Reporting will post the MHBG workpapers. The ESMI team will manage the ESMI contracts, provide support to ESMI providers, and review and process ESMI invoices to ensure providers are submitting invoices in accordance with their contracts. The MHBG team will review the workpapers and expenditure information for accuracy, compare the program-level expenditure tracking to the information provided in the grant workpapers, and compare actual ESMI expenditures to the required 10% earmark. The MHBG team will follow the established workpaper review and approval process. 4. Review expenditure status and address potential shortfalls. The MHBG team will review the quarterly expenditure information to identify potential shortfalls and determine whether additional qualifying ESMI expenditures may be needed to meet the 10% ESMI earmark. If a potential shortfall is identified, the MHBG team will work with internal partners and look for additional qualifying ESMI activities, including opportunities with other providers or programs, to address the shortfall and meet the set-aside requirement before the end of the grant period. FABU and Grant Reporting will complete their respective reviews as part of their established processes. The MHBG team will reach out to FABU or Grant Reporting as needed when questions, discrepancies, or clarification are identified. The AMH Program Manager will oversee this process and provide updates to the SDI-ABH Behavioral Health Chief and System Design and Implementation Programs Bureau Chief as needed. 5. Maintain supporting documentation. The MHBG team will maintain documentation supporting the ESMI expenditure monitoring process, including the expenditure tracking, quarterly reviews, required 10% earmark calculations, MHBG grant workpapers reviewed, the timeframe for meeting the requirement, and any identified discrepancies or corrective actions. Documentation will be maintained in the appropriate grant files in accordance with DHW record retention requirements. 6. Complete the grant closure review. FABU will initiate the established grant closure process approximately two months prior to the closure of each grant phase. During Stage 1, the grant will be reviewed to identify the areas and parties that need to be involved in the closure process. During Stage 2, Grant Reporting, Cash Management, and other identified parties will participate in the closure review. The MHBG team will participate in the closure process and review the ESMI expenditures and documentation to verify that the required 10% earmark has been met. Any questions or discrepancies identified during the closure process will be addressed with the appropriate parties. The results of the review will be documented and maintained with the grant records. Anticipated Corrective Action Date: September 30, 2027 Responsible for Corrective Action: Scott Rasmussen, SDI Programs Bureau Chief Scott.Rasmussen@dhw.idaho.gov (208) 334-5500

Finding Number 2025-214: The Department did not review the Child Care Development Fund (CCDF) Administration for Children and Families (ACF) Form 696 report at a sufficient level to identify an $88,822 misstatement. Federal Program: 93.596 - Child Care Mandatory and Matching Funds of the Child Care and Development Fund Related to Prior Finding: 2024-224 Agency’s view: The agency agrees with the finding. Corrective Action: The Grant Reporting Team Lead, Cash and Grants Supervisor, and/or Financial Manager will strengthen its review by performing and documenting an in-depth review of the ACF-696 workpapers each time a grant budget period or phase is rolled forward. This review will be completed within 90 days of the start of the new budget period and will include verification of applicable formulas and other highrisk calculations. To provide ongoing oversight, the Grant Log will be used as a centralized tracking mechanism to document budget period start dates, assigned reviewer, review completion date, identified discrepancies, and resolution of any issues. Reviewers will retain documentation evidencing the review and any corrections made. The Cash and Grants Supervisor or Financial Manager will periodically verify completion of the reviews and evaluate identified discrepancies to determine whether additional corrective action or process changes are necessary. These procedures are intended to provide a documented, repeatable review process with sufficient precision to identify reporting errors. Anticipated Corrective Action Date: January 31, 2027 Responsible for Corrective Action: Randena P. Darpli, CPA, CGFM, Financial Manager dena.darpli@dhw.idaho.gov (208) 334-4909

Finding Number 2025-212: A Social Services Block Grant (SSBG) Post-Expenditure Report did not include a review and approval prior to submission. Federal Program: 93.667 - Social Services Block Grant Related to Prior Finding: N/A Agency’s view: The agency agrees with the finding. Corrective Action: The SSBG Post-Expenditure Report has been added to the Department’s Grant Log with the applicable due date and will follow the Department’s established federal financial reporting review process. Prior to submission, the Grant Reporting Team will prepare the report and supporting workpapers, these include reconciliation of reported expenditures to the underlying financial records and documentation supporting the information reported. The report will be routed to the appropriate supervisor and/or Financial Manager for review and approval before submission. The Report Routing Cover Sheet will document the preparer, reviewer, date of review, approval, and any corrections or followup required. The Cash and Grants Supervisor will monitor the Grant Log to ensure the Post-Expenditure Report is routed, reviewed, approved, and submitted by the required due date. Completed Report Routing Cover Sheets and supporting documentation will be retained with the grant records as evidence that the required review and approval occurred prior to submission. This process will provide a documented review and approval control over the SSBG Post-Expenditure Report and ensure that management has evidence that the report was reviewed for accuracy and completeness before it is submitted. Anticipated Corrective Action Date: March 31, 2027 Responsible for Corrective Action: Randena P. Darpli, CPA, CGFM, Financial Manager dena.darpli@dhw.idaho.gov (208) 334-4909

Finding Number 2025-210: The Department did not provide documented support to verify the accuracy of a Low Income Energy Assistance Program (LIHEAP) performance report. Federal Program: 93.568 - Low-Income Home Energy Assistance Related to Prior Finding: 2024-230 Agency’s view: The agency agrees with the finding. Corrective Action: The Department has updated a process document that will strengthen our internal controls regarding the LIHEAP performance report. The Department will compile and retain sufficient documentation to support the information included in the LIHEAP Performance report. Anticipated Corrective Action Date: The process document was updated on September 9, 2026, and will be utilized when completing the upcoming LIHEAP performance report. Responsible for Corrective Action: Lisa Johnson, Program Manager Lisa.Johnson@dhw.idaho.gov (208) 334-5739

Finding Number 2025-209: The Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) project and expenditure reports (P&E) contained misstatements. Federal Program: 21.027 - Coronavirus State and Local Fiscal Recovery Fund Related to Prior Finding: N/A Agency’s view: The Division agrees with the finding and recognizes that additional controls are needed to ensure CSLFRF Project and Expenditure reports are accurate, fully supported, and more thoroughly reconciled to the State’s accounting system before submission. The Division notes that the identified errors were below the program’s materiality threshold and did not result in a finding of material noncompliance or a material weakness. The Division also corrects reporting errors when they are identified. However, Treasury’s published FAQ and written correspondence (attached) confirm that submitted reports cannot be reopened after the reporting deadline. Because P&E reports are cumulative, any necessary corrections must be reflected in a subsequent reporting period. This required correction process contributed to some of the differences identified during the audit because adjustments related to prior periods were necessarily recorded in later reports. Accordingly, the timing of these adjustments was consistent with Treasury’s prescribed reporting process. Corrective Action: The Division will implement the following corrective actions for all remaining CSLFRF P&E reports: 1. Required agency support. Each administering agency will submit a completed reporting template for every active project. If no activity occurred, the agency must provide documented confirmation of no change. Missing templates will be tracked and escalated before the report is finalized. 2. Reconciliation to Luma. Current and cumulative expenditures and obligations will be reconciled by administering agency to Lumat. All differences will be documented and resolved before submission. 3. Independent detailed review. The review will cover source templates, Luma reconciliations, current and cumulative amounts, prior-period balances, adjustments, and evidence supporting projects reported with no change. 4. Procedures, training, and retention. The Division will document the reporting process, provide training and cross-training to staff involved in CSLFRF reporting, and retain the templates, reconciliations, agency confirmations, review checklist, and final submission support in a centralized reporting file. 5. Correction of prior reporting errors. The Division will correct the identified errors through Treasury's prescribed process. In written email correspondence to Justin Collins, the U.S. Department of the Treasury confirmed: 'Prior submitted reports are not eligible to be reopened for revisions since the reporting deadline has passed. The SLFRF Project and Expenditure Reports are cumulative reports, and any adjustments needed will need to be made in the next reporting period.' Accordingly, the Division will document and include the necessary adjustments in the next available cumulative P&E report and retain Treasury's email as support for the correction method. Anticipated Corrective Action Date: January 31, 2027. The revised controls will be applied before submission of the next required quarterly CSLFRF P&E report. Responsible for Corrective Action: Justin Collins, Deputy Administrator | State Financial Officer Justin.collins@dfm.idaho.gov (208) 854-3063

Finding Number 2025-204: Multiple errors were identified in the amounts reported on the Rehabilitation Services Administration reports required for the Rehabilitation Services-Vocational Rehabilitation Grants to states. Federal Program: 84.126 - Rehabilitation Services - Vocational Rehabilitation Grants to States Related to Prior Finding: N/A Agency’s view: The agency agrees with the finding as we were using the cost allocation plan which changes the numbers from the ones used by the audit team and found from Luma (the state accounting system). Corrective Action: Corrective Action Objectives:  Ensure that future RSA reports are complete, accurate, consistent, and fully supported by documentation.  Establish and implement clear, standardized reporting procedures.  Retain documentation necessary to justify all reported amounts.  Identify and correct errors in previously submitted reports and communicate corrections to RSA.  Strengthen staff competencies and ensure adequate staffing levels to support proper grant reporting. Actions To Be Taken:  Form a Reporting Review Team comprising program, fiscal, and data analysts to review reports prior to submission.  Develop standardized RSA Reporting Procedures, including: o Step-by-step instructions for preparing RSA-17. o Required supporting documentation for each line item. o Definitions of allowable expenditures and required classifications. o Review and approval workflows.  Established a double-verification process, requiring two qualified staff members to independently verify all numeric entries prior to submission.  Implement a centralized documentation repository for financial records, worksheets, cost allocation documents, and reconciliation statements.  Establish a mandatory documentation checklist that must be completed before a report can be sent for approval.  Create standardized reconciliation templates tying reported amounts directly to the general ledger or supporting program records.  Complete a retrospective review of all RSA submissions for the necessary reports.  Identify inaccuracies, variances, and documentation gaps.  Develop corrected versions of each affected report.  Prepared a formal communication package for RSA including: o Corrected reports o Explanation of errors o Documentation supporting corrected amounts Conclusion: This Corrective Action Plan establishes a comprehensive strategy to resolve reporting errors, strengthen documentation practices, and prevent future inaccuracies in RSA federal grant reporting. Through strengthened controls, trained staff, and rigorous review processes, the Commission will ensure ongoing compliance and improved accountability. Anticipated Corrective Action Date: October 30, 2026 Responsible for Corrective Action: Corey Bresina, Administrative Services Manager cbresina@icbvi.idaho.gov (208) 334-3220

Finding Number 2025-203: The Commission did not comply with federal matching, level of effort and earmarking grant requirements for the Rehabilitation Services-Vocational Rehabilitation Grants to State program. Federal Program: 84.126 - Rehabilitation Services - Vocational Rehabilitation Grants to States Related to Prior Finding: N/A Agency’s view: The agency agrees with the finding as we were using the cost allocation plan which changes the numbers from the ones used by the audit team and found from Luma (the state accounting system). Corrective Action: Corrective Action Objectives:  Achieve and maintain full compliance with federal matching, level of effort, and earmarking requirements.  Establish durable internal controls that prevent or promptly detect errors.  Ensure all compliance activities are properly documented, retained, and independently reviewable.  Train and support staff to understand compliance responsibilities and execute them consistently. Actions To Be Taken:  Implemented monthly compliance monitoring, including: o Match reconciliation comparing required vs. actual non-federal contributions o Review of earmarked funds to ensure required percentages are met.  Standardized documentation templates: o Match tracking worksheets o Earmark compliance ledger  Introduce a transaction sampling audit each quarter to validate documentation completeness and accuracy.  Establish a centralized compliance records repository.  Mandatory training covering matching requirements, MoE, earmarking rules, and documentation expectations. We are currently receiving intensive technical assistance from the VRTAC. This will include initial training for all program and fiscal staff.  Establish an annual internal audit focused on RSA compliance.  Establishing semi-annual briefings to the leadership team summarizing compliance status and corrective measures. Conclusion: This Corrective Action Plan strengthens the Commission’s internal controls, enhances documentation, and ensures compliance with federal matching, level of effort, and earmarking requirements. Implementation of these measures will improve accountability, reduce risk, and support ongoing program integrity. Anticipated Corrective Action Date: December 30, 2026 Responsible for Corrective Action: Corey Bresina, Administrative Services Manager cbresina@icbvi.idaho.gov (208) 334-3220

Management has worked diligently to improve the financial reporting and audit readiness during 2026 and expect to meet the federal audit due date for the 2026 audit.Person(s) Responsible: Katrina King, CFO Timing for Implementation: December 31, 2026

FINDING 2025-003 Finding Subject: Highway Planning and Construction- Activities Allowed or Unallowed, Allowable Costs/Cost Principles Contact Person Responsible for Corrective Action: Stan Heil Contact Phone Number and Email Address: 812-542-0506-sheil@floydcounty.in.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The Corrective Action Plan for this identified material weakness modified opinion, is first to recognize that strengthened internal controls will reduce/eliminate non-compliance submissions, thereby resulting in potential loss of Federal awards to the County of Floyd. The Commissioners have realigned and separated the Operations and Financial functions of Operations, to ensure greater attention to compliance. The identified material weakness with modified opinion occurred prior to the County’s realignment. It is desirous of the Floyd County Commissioners that compliance to all federal/state/and local awards are strictly adhered to and the separation of Operations and Finance strengthen this commitment. The Internal Controls will require that both the Chief Operations Officer and Chief Financial Officer review and sign as approval, ensuring that cross-referencing ledger expenditures for filing of reimbursement to Federal awards are compliant. The process will also ensure that any duplication of any reimbursements are eliminated. Anticipated Completion Date: The anticipated completion date of the Corrective Action Plan identified above will occur September 30, 2026 reporting as the exposure of this finding-weakness, is being addressed. Commissioners actions to ensure compliance and oversight were strengthened with the separation of Operations and Finance.

Plan: Implement internal controls in the Department for matching to be updated monthly in order to evaluate matching level. Director of prevention will work with the accounting team to keep records up to date in order for accounting to make appropriate matching JEs as the grant year progresses. Implementation Date: Beginning of Fiscal Year 27- October 2026 Responsible Party: Director of Prevention will oversee the staff report of Matching for the grant and ensure that these internal controls are taking place and report to the accounting department as necessary.

Plan: Implement internal processes for review of cash spend in order to pull only utilized funds to that point for the grant. Implementation Date: Beginning of Fiscal Year 27- October 2026 Responsible Party: Shelby Turner, CFO will oversee the accounting department ensures that these internal controls are taking place and funds are pulled accordingly.

Type of Finding: Material Weakness in Internal Control over Compliance Division: Support Services Responsible Official: Chief, Support Services Target Completion Date: June 30, 2026 Status: In Progress 1. Summary of the Finding The FY 2024‑25 Single Audit identified deficiencies in internal controls over the District’s cash management practices for federal grants under ALN 66.001 and 66.039. Specifically, the District did not retain evidence showing that drawdown requests were reviewed and approved by the appropriate individual prior to submission. This control lapse occurred for all tested drawdowns and represents a material weakness in internal control over compliance. 2. Root Cause The District’s procedures for processing payment drawdowns did not require or document review and approval prior to submission. The lack of a formalized and documented approval step resulted in an incomplete audit trail and insufficient compliance documentation. 3. Corrective Action Plan The District will strengthen internal control over federal grant cash management by implementing formal approval, documentation, and oversight requirements for all drawdown submissions. A. Implement Formal Drawdown Review and Approval Procedures B. Establish Documentation and Retention Requirements C. Monitoring and Quality Assurance 4. Monitoring & Verification • The Chief of Support Services will oversee implementation and continuous compliance. • Compliance will be verified through quarterly internal reviews and a year‑end checklist confirming approval documentation for every drawdown. • All results will be retained and made available for future audits. 5. Expected Outcome These corrective actions will: • Ensure drawdown submissions are accurate, reviewed, and compliant with federal requirements. • Establish a complete audit trail documenting proper oversight. • Strengthen internal control over federal cash management and prevent future findings. • Reduce risk of inaccurate or unauthorized drawdowns and ensure sustained compliance with 2 CFR Section 200.303(a).

Corrective Action Plan Year Ended December 31, 2025 The following is the corrective action plan for Section III - Federal Award Findings and Questioned Costs: Finding 2025-002 Summary of Finding: The USDA requires multiple reports to be submitted each fiscal year. During the current year, certain reports were not submitted to the USDA until after the due date. Corrective Action Plan: Effective immediately, the Nursing Home Administrator will maintain a calendar reminder to ensure notifications are sent after the close of each quarter when the required report is due for submission. Contact Person: Caitlin Delbridge, NHA Westward Heights Care Center Administrator

Project paid expenses on behalf of an affiliate in the amount of $1,550.00 from Project funds without prior HUD approval. As of December 31, 2025, the affiliate owed the Project $1,550.00. a. Comments on the Finding and Each Recommendation Management agrees with the findings and recommendation. The payment was made in error due to an oversight into the invoice approval process. b. Action(s) Taken or Planned on the Finding The affiliate reimbursed the Project for the full amount of $1,550.00 on 04/29/2026. Management implemented an additional approval control in RealPage requiring review and approval by the Housing Director and/or the Property Manager prior to payment processing. This control helps ensure invoices are charged to the correct property and prevents one project from paying expenses on behalf of another project or affiliate. Management will continue to monitor compliance with these procedures.

Finding Reference Number: 2025-001 – Internal Control over Compliance with Indirect Costs and Earmarking Requirements Corrective Action: Going forward, New Beginnings’ management will ensure that review of all invoices and related calculations are documented and retained. Projected Completion Date: December 31, 2026

Reporting – Assistance Listing Number 14.251 Recommendation: We recommend that management establish and implement a policy to record and retain review of all reports, and to retain proof of submission to verify timeliness of submission of required reports. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization will establish and implement policies to record and retain review of all reports, and to retain proof of submission to verify timeliness of submission of required reports. Name of the contact person responsible for corrective action: Joel Bailey Planned completion date for corrective action plan: December 31, 2026