Corrective Action Plans

Department: Health and Human Services Title: Internal control over Summer EBT eligibility needs improvement Questioned Costs: Known; $1,680 Likely: Undeterminable Status: Corrective action complete Corrective Action: Documentation and Records Retention: The Department replaced manual notification with automation through the statewide database. Database generated letters are both retained appropriately and easily retrievable for individual clients. Inaccurate certifications through database errors: Database cleanup and streamline certification logic updates were necessary to resolve inaccurate certifications. This process was completed prior to issuance for summer of 2025. Completion Date: May 1, 2025 Agency Contact: Evan Denno, Program Manager – SNAP, DHHS, 207-446-3201

Department: Health and Human Services Title: Internal control over EBT reconciliation needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department will request Technical Assistance From USDA-FNS on required reconciliation activities. (Completed) The Department will receive feedback and instruction from USDA-FNS. The Department will engage EBT vendor with potential reporting changes (if necessary). The Department will update EBT Reconciliation Procedures and implement changes. Completion Date: February 26, 2026, April 30, 2026, May 31, 2026, and June 30, 2026, respectively Agency Contact: Ian Yaffe, Director, Office for Family Independence, DHHS, 207-592-1481

Finding: 2025-002 Name of Contact Person: Candice Gobble, DSS Director Corrective Action/Management’s Response: Management concurs with this audit finding. In July 2025, a comprehensive recertification work plan was implemented to strengthen procedures and improve tracking of pending PLA recertifications. Case workers are provided with monthly calendars to guide required activities and are assigned individual spreadsheets identifying their pending cases each month. Each spreadsheet includes a defined number of cases to be completed daily. PLA Supervisor and the Program Manager monitor progress monthly and provide feedback to staff as appropriate. Additionally, designated days each month are reserved for case workers to follow up on pending DHB-5097s to ensure timely action is taken and to prevent cases from continuing to extend from month to month. Proposed Completion Date: Immediate and ongoing.

Finding: 2025-001 Name of Contact Person: Candice Gobble, DSS Director Corrective Action/Management’s Response: The cases identified with missing forms originated during the COVID-19 pandemic, when differing guidance was issued by Child Welfare and Medicaid DHHS. During this time, Medicaid staff were informed that reviews were not required. The Medicaid worker had previously been responsible for tracking due dates and notifying staff; however, because the reviews were deemed unnecessary during the pandemic, these cases were not included on the tracking report. To prevent this issue from occurring in the future, a new process has been developed and implemented collaboratively between Permanency Planning and Medicaid to track 5120a forms. Effective August 2025, The Human Services Coordinator now provides a spreadsheet at least monthly identifying 5120a forms that are due and their respective due dates. This spreadsheet is shared with Medicaid staff and the Child Welfare team for completion, and supervisors are responsible for ensuring timely completion of the forms. Management will strengthen internal controls by implementing several measures to ensure all required eligibility documentation is properly completed and maintained. A standardized eligibility documentation checklist will be introduced for all foster care and adoption assistance cases to clearly identify required forms, including initial and annual Form 5120a recertifications, with supervisors verifying completion during routine case reviews. Supervisory oversight will be enhanced through quarterly CQI random casefile audits focused specifically on documentation accuracy and timeliness, with results used to address trends or additional support needs. In addition, all applicable staff will receive refresher training on federal documentation requirements, correct completion and filing of Form 5120a, and required recertification timelines, and this guidance will also be incorporated into onboarding for new employees. Proposed Completion Date: Immediate and ongoing.

The District will impose a system of checks and balances among the Superintendent, Treasurer and Encumbrance Clerk to ensure that the proper codes are input in the financial software to correctly track Federal revenues and expenditures. Monthly reports will be run and cross-checked by District accounting personnel and the Superintendent. These actions will be completed immediately or no later than January 14, 2026 to ensure proper coding of Federal revenues and expenditures.

The District Superintendent will immediately train the District's accounts payable department on the requirements of the Davis-Bacon Act. Furthermore, the District Superintendent will be the point of contact for construction projects that are funded with Federal funds. They will ensure that any contract entered into must include the locally prevailing wage to be paid to workers including fringe benefits. The Superintendent will require contractors to pay covered workers weekly and sumbmit weekly certified payrolls to the accounts payable personnel. Also, the District Superintendent will inspect the job site to ensure that Davis-Bacon wage determination and posters are displayed at the site. These actions will be completed immediately or no later than January 14, 2026 to ensure the proper District personnel are trained and understand the requirements for future construction projects that are Federally funded and are required to follow the Davis-Bacon Act.

Finding 2025-006 Subrecipient Monitoring Federal Agency Name: Department of Health and Human Services Pass-Through En􀆟ty: Iowa Department of Health and Human Services Assistance Lis􀆟ng Number: 93.069 Program Name: Public Health Emergency Preparedness Finding Summary: The County did not formally communicate the required informa􀆟on to the subrecipient. No subrecipient agreement was executed. In addi􀆟on, no monitoring ac􀆟vi􀆟es were documented. Responsible Individuals: Amber Shepard, Budget Director Correc􀆟ve Ac􀆟on Plan: Clinton County is working with Genesis Health System on implemen􀆟ng a subrecipient agreement and will put a control process in place to monitor An􀆟cipated Comple􀆟on Date: June 30, 2026

Corrective Action Plan: The Department will review current processes for the Federal Funding Accountability and Transparency Act (FFATA) reporting to ensure subawards are reported within the Federal requirements. In January 2026, the Department implemented a new process to electronically upload subawards directly into SAM.gov. The Department will continue to monitor the new process to ensure subawards are reported timely and in accordance with Federal FFATA requirements. Anticipated Completion Date for Corrective Action: June 2026 Contact Person Responsible for Corrective Action: Name: Scott Ferguson Title: Chief Financial Officer Address: 30 E Broad Street, 11th Floor, Columbus, Ohio Phone Number: (614) 752-9340 E-Mail Address: Scott.Ferguson@dbh.ohio.gov

Corrective Action Plan: The Department respectfully disagrees with the audit finding, as the 20-day disbursement policy represents what is "administratively feasible" given the operational environment and necessary internal controls. The regulation doesn't prescribe a specific timeframe but requires disbursements "as close as is administratively feasible," and the Auditor's eight-business-day standard was determined without consultation with the Department. Only one instance among 16 tested disbursements (6.3%) exceeded the Auditor's timeframe, demonstrating processes are functioning effectively 93.7% of the time even against this more stringent standard. The Department remains committed to continuous improvement in its cash management practices while maintaining proper fiscal stewardship of federal funds. Anticipated Completion Date for Corrective Action: December 2026 Contact Person Responsible for Corrective Action: Name: Scott Ferguson Title: Chief Financial Officer Address: 30 E Broad Street, 11th Floor, Columbus, Ohio Phone Number: (614) 752-9340 E-Mail Address: Scott.Ferguson@dbh.ohio.gov

Corrective Action Plan: The Department agrees with the finding related to the large volume of system alerts and remains committed to ongoing work with our vendor, the Department of Job and Family Services (ODJFS), and the Department of Children and Youth (DCY) to improve the Ohio Benefits eligibility system and reduce unnecessary alerts, including those generated through IEVS. These efforts are already showing progress: total incoming alerts decreased from 21.2 million in SFY 2024 to 16.9 million in SFY 2025. ODM has also reduced the average time it takes to clear alerts. Alerts play a key role in program integrity by notifying county caseworkers of important eligibility information that may require action. Anytime new programs are added to the Ohio Benefits system or program rules change, new alerts may be generated. ODM meets every other month with ODJFS to review IEVS-related issues. This collaboration resulted in nine system enhancements in SFY 2025 to reduce unnecessary alert generation. Several enhancements introduced Smart Alert Hierarchy logic, which prevents duplicate alerts by directing an alert to the individual’s first active or pending program in the sequence: Medicaid, SNAP, TANF, Child Care. Notable changes include: • AVS alerts: Only the final alert is generated 15 business days after the request. • SWICA alerts: The threshold for generating alerts increased to $750 per quarter or $250 per month. • PARIS alerts: Alerts are no longer generated when data matches previous records or when information is incomplete; Smart Alert Hierarchy now applies. • New Hire alerts: Alerts are suppressed when employer information has not changed; Smart Alert Hierarchy applies. • BENDEX alerts: Alerts are suppressed when SSA information has not changed; program-specific income limit alerts were retired; Smart Alert Hierarchy applies. • IEVS UCB and SDX alerts: Alerts no longer generate when changes are under $250 per month (up from $25). • IEVS BENDEX alerts: Alerts suppressed for changes under $250 per month (up from $49). • IRS Unearned Income alerts: Alerts suppressed when income differences are within $250 per month of existing records. ODM is continuing to evaluate additional alert-reduction opportunities. Confirmed upcoming system updates include: • Release 5.5 (anticipated June 12, 2026): Automation of verified-upon-receipt SDX interfaces, suppressing alerts after automatic reconciliation. • Release 5.6 (anticipated August 22, 2026): Updated thresholds for IRS Unearned Income alerts. Regarding automation, ODJFS explored using bots to process IEVS alerts. However, federal rules prohibit automation in IEVS processing for SNAP, and because IEVS alerts span multiple programs, automation cannot be applied solely for Medicaid. ODM will continue working with ODJFS to evaluate future options. ODM’s Technical Assistance, Compliance, and County Engagement teams regularly train and support county staff. ODJFS provides a web-based course, available year-round through the County Resources website, to ensure ongoing access despite frequent staffing changes. The training is being updated to be more interactive and modular. The next live annual training event is scheduled for October 2026. The Auditor of State noted that 833,232 of the 1,721,772 IEVS alerts issued during the audit period (48.4%) were not cleared within 45 days. Federal rules require agencies to develop and follow verification procedures (42 CFR 435.945), and state rule OAC 5160:1-1-04 requires agencies to take specific steps to determine eligibility within 45 days. However, clearing an alert in the Ohio Benefits system is not itself a federal or state requirement. ODM agrees counties must improve the administrative step of clearing alerts, but failure to clear an alert does not necessarily mean the information was not reviewed or acted upon in a timely manner. ODM will continue to emphasize the importance of completing this final step. Anticipated Completion Date for Corrective Action: January 2027 Contact Person Responsible for Corrective Action: Megan Powell Audit Remediation Manager 50 West Town Street, Suite 400, Columbus, Ohio 43215 614-752-3844 megan.powell@medicaid.ohio.gov

Corrective Action Plan: The Department will continue to evaluate its internal controls over the SAM.gov reporting process, by collecting and reporting complete, accurate, and timely information regarding the subawards subject to the Transparency Act. The Department will cross-train employees over the Transparency Act reporting process to ensure the SAM.gov reporting can be performed by various personnel during vacations or with employee turnover. Management will review these procedures to ensure they promote compliance with federal regulations and are operating as intended. Anticipated Completion Date for Corrective Action: June 2026 Contact Person Responsible for Corrective Action: Name: Colin Grisier Title: Senior Manager for Reporting and Compliance Address: 77 South High Street, Columbus, Ohio 43215 Phone Number: 614-446-2625 E-Mail Address: Colin.Grisier@development.ohio.gov

Corrective Action Plan: The Ohio Benefits team, in partnership with the Program Office, continues to develop and implement system enhancements to assist in the reduction of the work effort related to the Income Eligibility Verification System (IEVS) for the county workers. A complete end to end review was conducted and improvements were identified and implemented into the Ohio Benefits system to assist with the volume and usefulness of the data in the IEVS matches. A summary of the changes implemented can be found on the table below. We continue to monitor the impact of these changes on the overall volume and frequency of IEVS matches. Description Release/Release Date Summary State Wage Information Collection Agency (SWICA) Alerts Reduction 4.14.1/January 18, 2025 Modified the income comparison check to not generate the SWICA Alert if the income received on the file is less than $750/quarter or $250/month when compared to the Salary, Wages Income record in Ohio Benefits Worker Portal (OBWP). Public Assistance Reporting Information System (PARIS) Alerts Reduction 4.14.1/ January 18, 2025 Modified PARIS Veteran and Federal Wage Match to suppress generating E-Verify records and alerts if the inbound record has the same data as previous PARIS E-Verify records. Modified PARIS Interstate Match to suppress generating EVerify records and alerts if the record does not include Client Eligibility Information. Modified PARIS Alerts to generate only one alert to each worker assigned to the case based on the alert hierarchy. National News Hire (NNH) Alerts Reduction 4.14.1/ January 18, 2025 Modified NNH interface to not generate E-Verify (Interface Detail) records or Alert if the interface detail screen and alert has already been generated in the past for the same employer, and the inbound record has the same Employer Information as previous E-Verify records. Modified NNH interface to generate only one alert to each worker assigned to the case based on the alert hierarchy. Beneficiary Earnings and Data Exchange (BENDEX) Alerts Reduction 4.15.1/March 28, 2025 Modified BENDEX Interface to not generate E-Verify records or Alerts if the information received on the inbound record has not changed from the last update received from SSA. Modified BENDEX interface to generate only one alert to each worker assigned to the case based on the alert hierarchy. Modified the BENDEX Difference Alert (> $49) to be program neutral and retired the existing program specific alerts for the income limit check. IEVS threshold modification – Unemployment Compensation Benefit (UCB) 5.1.1/August 15, 2025 Modified income comparison check to not generate the IEVS: Unemployment Compensation – Discrepancy Alert if the difference is less than $250/month (changed from $25/month to $250/month). IEVS threshold modification – State Data Exchange Supplemental Security Income (SDX SSI) Interface 5.1.1/ August 15, 2025 Modified income comparison check to not generate the IEVS: IEVS: SDX-SSI Response from SSA – Unearned Income Difference Alert if the difference is less than $250/month (changed from $25/month to $250/month). IEVS threshold modification – BENDEX Interface 5.1.1/ August 15, 2025 Modified income comparison check to not generate the BENDEX Difference Alert if the difference is less than $250/month (changed from $49/month to $250/month). IEVS threshold modification – Internal Revenue Service (IRS) Unearned Income Interface 5.1.1/ August 15, 2025 Modified the IEVS: IRS Income Program Block alert to be suppressed when the ‘Income Amount’ and ‘Income Indicator’ on the E-Verify record of the incoming tax data is within $250/month of the existing matching unearned income on the individual’s case. Also, as reported previously, the state has requested a waiver from Food and Nutrition Services at the U.S. Department of Agriculture related to the requirement to interface with the IRS Unearned Income data source. This interface produces outdated, and therefore unusable, data. The same data is available and received from other sources timelier, making the Internal Revenue Service’s Unearned Income data source unnecessary. Other states have already implemented this change with success. This request is currently pending national office review. If this waiver is approved, we will drop this interface, eliminating approximately 1 million matches per year. If the waiver is not approved, a separate effort will be made to update the threshold to match the other data sources listed above. Reduction of the volume of these matches is anticipated to lead to improvements in the timely completion of matches on the part of the county worker while continuing to remain compliant with IEVS policies. The Department provides IEVS Alert/Match Processing training to educate staff on matches received through IEVS for the Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance for Needy Families (TANF) programs. This training supports eligibility workers by enhancing their understanding of IEVS matches, their importance in ensuring case accuracy, and the associated processing requirements. The IEVS Processing training is available on demand through the Ohio Benefits Portal and Ohio Learn, the state’s learning management system. Additionally, the Department offers one-on-one IEVS training and technical assistance to counties upon request. The state is reviewing our ability to mandate any type of training and will include this in our review. Fraud Control Triad Reviews and Assessments are conducted on a three-year cycle, ensuring that each county is evaluated at least once within that period, resulting in approximately 28 county reviews annually. These reviews include an assessment of IEVS alert and match activity, along with clear communication regarding each county’s responsibility to monitor all IEVS activity for compliance. Anticipated Completion Date for Corrective Action: August 2026 Contact Person Responsible for Corrective Action: Name: Christina L Burt Title: Assistant Deputy Director Address: 30 E Broad St, 31st Floor, Columbus, Ohio 43215 Phone Number: 614-644-1621 E-Mail Address: christina.burt@jfs.ohio.gov

Corrective Action Plan: The Department evaluated and strengthened internal controls over its reporting process to reasonably ensure the information presented in the quarterly Performance and Expenditure Reports will be current, accurate, complete, and agree with support prior to submission to the Ohio Office of Budget and Management. The procedures will be periodically monitored to ensure they are working as intended. The Department cross trained employees so in the event of turnover or extended leave, the reporting process can continue without disruption or delays. Anticipated Completion Date for Corrective Action: Completed April 2025 Contact Person Responsible for Corrective Action: Name: Thomas Fitz Gibbon Title: Deputy Chief, Office of Division Support Address: 77 South High Street, Columbus, Ohio 43220 Phone Number: 614-466-0043 E-Mail Address: thomas.fitzgibbon@development.ohio.gov

Corrective Action Plan: The Ohio Department of Natural Resources has timely entered all awarded subrecipient agreements into SAM.gov as of September 2025 and implemented a new automated tracking/reminder process through a newly built grant SharePoint tracker. Going forward, subrecipient information will be entered into SAM.gov by the end of the month following the month in which the award was issued. Anticipated Completion Date for Corrective Action: Completed September 2025 Contact Person Responsible for Corrective Action: Name: Jennifer Woodman Title: Assistant Chief, Division of Mineral Resources Management Address: 2045 Morse Rd, Building H2, Columbus, Ohio 43229 Phone Number: (614) 265-1094 E-Mail Address: JenniferE.Woodman@dnr.ohio.gov

FINDING 2025-002 (Auditor Assigned Reference Number) Finding Subject: TRIO - Reporting Contact Person Responsible for Corrective Action: Stacy Atkinson, Indianapolis Chancelor John Gipson, Lake County Chancelor Chad Bolser, Richmond Chancelor Jeffrey Scott, Muncie Chancelor Contact Phone Numbers and Email Addresses: 317-921-4800 ext. 085745 and satkinson17@ivytech.edu 812-297-3252 and jgipson33@ivytech.edu 765-966-2656 ext. 092345 and cmbolser@ivytech.edu 765-506-1942 and jdscott@ivytech.edu Views of Responsible Officials: We concur with the findings. Description of Corrective Action Plan: The College will ensure that each affected campus develops and implements a plan that includes internal controls to mitigate risks and ensure compliance. Campuses will be expected to conduct internal reviews of annual performance reports and maintain proper documentation of any identified corrections. Anticipated Completion Date: June 30, 2026

2025-001 - ELIGIBILITY Auditee’s Response and Planned Corrective Action Rockport Housing Authority (RHA) contracted with Newburyport Housing Authority (NHA) to manage the Section 8 program. They will be calculating income, assets and/or medical expenses based on HUD regulation. NHA is staffed with an experienced Section 8 Coordinator. In addition, NHA uses Rent O Meter to provide Rent Reasonableness Reporting that will be entered into PHA Web as a method of recording. Planned Implementation Date of Corrective Action: June 30, 2026 Person Responsible for Corrective Action: Marie Mathas, Executive Director

2025-003: Late Return of Title IV Financial Aid - Student Financial Aid Cluster – Assistance Listing #s 84.007, 84.033, 84.063, 84.268 - Grant Period - Year Ended June 30, 2025 Condition Found During our Return of Title IV Fund testing, we noted that the College did not calculate or return Title IV Student Financial Aid for ten out of twenty-five students tested until after 45 days when the student ceased attendance. We consider the untimely calculation and Return of Title IV Student Financial Aid to be a material weakness relating to the Special Tests and Provisions Compliance Requirement. Corrective Action Plan The weekly Official Withdrawal report is reviewed and processed by the Assistant Dean. As applicable, a week after the calculation is performed and funds are returned to DOE, each student recorded is reviewed on the Common Origination and Disbursement (COD) site to ensure that funds were returned. This additional step is conducted monthly by members of the Financial Aid Management and student worker teams. Additionally, the Assistant Dean performs a monthly check of the Official Withdrawal report to ensure that the Return to Title IV calculation was performed for all required students. The review includes viewing the record in Colleague as well as COD. Responsible Person for Corrective Action Plan Yvette M. McGhee Assistant Dean of Financial Aid Implementation Date of Corrective Action Plan The Correction Action Plan was implemented at the beginning of the Fall 25 semester (approximately August 15, 2025)

Contact person responsible for correction action – Michell Hall, CFO Anticipated completion date – June 30, 2025 Corrective action Sterling College is in agreement with the finding. At the time of noncompliance in this area the college was transitioning to a new software system for the college. The software was required to “go dark” for a period time and during this time no processing could be completed. Because of other issues with the system, the R2T4 timeline for returning the funds was not calculated correctly and the deadline was missed by a few days. Administration did not realize the error until after the deadline had passed. As soon as the error was found, the process was completed immediately. We do not expect to have this issue in the future. The R2T4 process for review has always been that one person in the financial aid office is responsible for completing the process and another person reviews the documents once the process is complete. We will continue this process and look for other procedures to implement to ensure an accurate R2T4 process is completed.

To the Department of Housing and Urban Development, During the audit of the Housing Authority’s fiscal year ended June 30, 2025 financial statements, it was determined that the unaudited financial data schedule that is utilized as the Housing Authority’s underlying financial statements were not properly stated. Significant errors existed regarding grant receivables, the allowance for doubtful accounts - tenants, capital assets, accounts payable, grant revenues and bad debt expense. Also, a desk review was performed by HUD and it was determined that the Housing Authority had not properly documented its calculation of monthly voucher leased amounts and it understated its Housing Assistance Payment expenses in its VMS reporting. The Housing Authority’s Executive Director, Ashiya Hawkins, is responsible for implementing the corrective action plan. Finding 2025-002 - VMS Reporting Deficiencies We concur with the recommendation and we will establish standard operating procedures that ensure that the HAP amounts and number of vouchers stated on the VMS report are both accurate and properly documented. We are working with our software provider to ensure that VMS reporting software is being fully and correctly utilized. We are also planning on additional training for HCV employees to make sure they are qualified to meet VMS reporting and documentation requirements.

3/20/2026 Community Action Team, Inc. respectfully submits the following corrective action plan for the year ending June 30, 2025. Kern & Thompson, LLC: Audit period: July 1, 2024 to June 30, 2025 The finding from the schedule of findings are discussed below. FINANCIAL STATEMENT FINDINGS 2025-001 Federal Award Special Reporting Federal Funding Accountability and Transparency Act (FFATA) Material Non-Compliance and Material Weakness in Internal Controls over Compliance (Repeat of finding 2023-003, 2024-002) Recommendation: The Organization should establish written policies and procedures regarding review of grant agreements for compliance requirements along with written policies and procedures for first-tier subawards including tracking and proper internal control procedures. Action Taken: Management concurs with the finding and has defined corrective action to address it. We understand a material weakness is identified in the internal control over special reporting. We have identified gaps in our reporting processes and worked to implement changes to ensure compliance with special reporting requirements. The responsibility for reporting under the Federal Funding Accountability and Transparency Act (FFATA) will be within the Fiscal Department. Policies and procedures will be updated regarding special reporting requirements. The Fiscal department will also be responsible for reviewing all contracts to identify all compliance requirements. Tracking procedures will be implemented to ensure reports are filed timely. The above identified corrective action was implemented in July 2024 and subsequent filing for 2025 and 2026 are compliant. Stacey Wilson, Fiscal Director, has implemented a tracking system for the FFATA. Should you have any questions regarding this plan, please contact me at 503-366-6563. Sincerely, Daniel Brown Executive Director

CORRECTIVE ACTION PLAN March 18, 2026 Housing for Rockdale Elders, Inc. respectfully submits the following corrective action plans for the year ended October 31, 2025: Name and address of independent accounting firm: CohnReznick LLP 350 Granite Street Suite 1200 Braintree MA 02184 Audit period: November 1, 2024 - October 31, 2025 The findings from the October 31, 2025 schedule of findings and questioned costs is discussed below. The findings are numbered consistently with the number assigned in the schedule. Finding 2025-003 - Eligibility - Material Weakness Recommendation: Management should establish procedures and monitor compliance with those procedures to ensure that the determination of tenant eligibility and the maintenance of lease files are in accordance with guidelines specified by HUD. Action Taken: Management agrees with the finding and is in the process of revising internal controls to address this issue.

The South Carolina Department of Social Services (SCDSS) respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT U.S. Department of Health and Human Services Refugee and Entrant Assistance – Assistance Listing No. 93.566 Disposition of Audit Finding: The SCDSS concurs with the audit finding. Corrective Action: SCDSS will collaborate closely with SCDHHS to ensure eligibility policies and procedures for the Refugee Medical Assistance (RMA) program clearly and accurately define program eligibility requirements. SCDSS will also ensure that staff responsible for processing RMA applications receive appropriate training to apply these policies consistently and correctly. To support ongoing compliance, SCDSS will implement a quarterly monitoring plan designed to identify any individuals incorrectly categorized under RMA. SCDSS will maintain continuous communication and follow-up with SCDHHS to verify timely implementation of these corrective actions and to address any issues that arise. Anticipated Completion Date: July 1, 2026 Names of the contact persons responsible for corrective action: • Ambrea Jones, State Refugee Coordinator at 803-898-7303 • Brittney White, State Refugee Health Coordinator at 803-898-7545

Reference Number: 2025-020 Prior Year Finding: No Federal Agency: U.S. Department of Health and Human Services State Agency: Agency of Human Services Federal Program: Foster Care – Title IV-E Assistance Listing Number: 93.658 Award Number and Year: 2401VTFOST (10/1/2023 – 9/30/2025) 2501VTFOST (10/1/2024 – 9/30/2026) Compliance Requirement: Eligibility Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance Recommendation: We recommend that the Agency review and enhance procedures and controls to ensure that it correctly identifies the eligible federal program for all cases coded in CDDIS. We further recommend that children on whose behalf payments are charged to Foster Care are eligible for benefits under the program. Views of responsible officials: Management agrees with the finding. Corrective Action Plan: The Agency will work with the IT systems of both the Family Services and Child Development Divisions to ensure that accurate eligibility information is shared between the systems. This will include: 1. What program each child is eligible for, adoption or foster care 2. The accurate start and end dates of eligibility 3. Any changes to eligibility during the life of a case The staff from Family Services will ensure that all Title IV-E eligibility information is shared with IT as they create the processes to share that information with the Child Development Division. The staff at the Child Development Division will work with their IT vendor to ensure all updates are completed and tested to ensure that Title IV-E funds are being claimed appropriately. Scheduled Completion Date of Corrective Action Plan: The underlying work to clarify the eligibility information needed has already begun and the process of updating the IT systems on both the FSD and CDD sides will be completed by April 1, 2026. Contacts for Corrective Action Plan: Heather McLain, Revenue Enhancement Director, Family Services, heather.mclain@vermont.gov Brenda Hallock, Revenue Team Lead, Family Services, brenda.hallock@vermont.gov Karolyn Long, Operations Director, Child Development Division, karolyn.long@vermont.gov Ed Dwinell, Financial Director, DCF Business Office, ed.dwinell@vermont.gov Peter Moino, AHS Director of Internal Audit, peter.moino@vermont.gov

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

Reference Number: 2025-011 Prior Year Finding: No Federal Agency: U.S. Department of Transportation State Agency: Agency of Transportation Federal Program: National Infrastructure Investments Assistance Listing Number: 20.933 Award Number and Year: 69A36520401930BLDVT (8/1/2020 – 10/31/2026) CA0714 (4/29/2022 – 4/29/2032) CA0751 (5/1/2023 – 10/1/2028) CA0906 (1/24/2025 – 11/1/2030) Compliance Requirement: Reporting – Federal Funding Accountability and Transparency Act (FFATA) Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance Recommendation: We recommend the Agency review its procedures and internal controls to ensure that subawards are reported timely and accurately to SAM.gov in no later than the end of the month following the month of issuance or modification. Views of responsible officials: Management agrees with the finding. Corrective Acton Plan: VTrans will update procedures to ensure compliance with the Federal Funding Accountability and Transparency Act (FFATA) reporting requirements. As part of this update, the Agency will review the current reporting workflow and clearly define roles, responsibilities, and timelines for FFATA reporting. The updated procedure will include guidance for identifying reportable sub-awards, collecting required data elements, and entering information into the appropriate federal reporting system within the required timeframe. Scheduled Completion Date of Corrective Action Plan: June 30, 2026 Contacts for Corrective Action Plan: Diane Bigglestone, Financial Director, diane.bigglestone@vermont.gov