Corrective Action Plans

Period of Performance Health Centers Cluster – Assistance Listing No. 93.224 and 93.527 Recommendation: We recommend the Organization implement a comprehensive and thorough process to review and monitor expenditures charged near the beginning and end of grant periods to ensure the expenditures incurred are within the authorized federal award grant period. Action taken in response to finding: A procedure was implemented March 2026 to perform an internal audit of the expenditures charged within the pre-and-post 30 days of a grant year transition to ensure expenses are occurring within the appropriate grant year prior to draw submission and will continue moving forward. A remedy of $87,554.96 was implemented over two grant draws within the grant year to address the population of period of performance crossing expenses. Name(s) of the contact person(s) responsible for corrective action: John Robinson, CFO Planned completion date for corrective action plan: New policy and procedure implemented in March 2026 and will be carried forward.

Condition: The Organization did not liquidate all financial obligations incurred under the NASA federal award within 120 calendar days after the conclusion of the period of performance, as required by 2 CFR Section 200.344(c). Corrective Action Steps: Establish a written close-out procedure for federal awards that identifies all required actions, including liquidation of all financial obligations, within the 120-day close-out window prescribed by 2 CFR Section 200.344(c). Designate a responsible staff member to monitor upcoming award end dates and initiate the close-out checklist no later than 30 days before the period of performance ends. Maintain a federal award close-out tracker that documents the award end date, the 120-day liquidation deadline, all outstanding obligations, and the date each obligation is liquidated. Coordinate with program staff to identify and process all outstanding invoices, subcontractor payments, and other obligations prior to the liquidation deadline. Review all active and recently expired federal awards to assess whether any obligations remain unliquidated and remediate as needed. Responsible Party: CLC NWI Executive Director. Target Date: Executive Director Partially Completed. All funds have been liquidated as of 3/23/26. All other corrective action steps to be implemented by May 15, 2026.

COMMONWEALTH OF PUERTO RICO AUTONOMOUS MUNICIPALITY OF VEGA BAJA Corrective Action Plan For the Fiscal Year Ended June 30, 2025 Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and OMB Super Circular Uniform Guidance Audit Period: July 1, 2024 – June 30, 2025 Fiscal Year: 2024-2025 Principal Executive: Hon. Marcos Cruz Molina, Mayor Contact Person: Mr. Edgardo Pérez, Department of Management, Administration and Budget Director Phone: (787)855-2500 Original Finding Number: 2025-005 Statement of Concurrence or Non concurrence: We concur with the findings. Corrective Action: A letter was sent to ACUDEN detailing the adverse situations and the steps taken by our municipality to obtain reconsideration. This is because the payment was made without the extension letter, even though we had the authorization to commit the funds. Furthermore, the Emergency Ready funds reports were submitted, and we have not received any finding feedback from the Agency. We are still awaiting a response from the letter submitted. The Sub Director of Finance will establish an internal control system in which the comply with the due dates of agreements and various federal proposals, as well as with reports, payments of funds, and obligations, including Child Care, will be periodically monitored. Implementation Date: Fiscal Year 2026-2027. Responsible Person: José A. Mathews Maisonet Program Accountant

2025-005 US Department of Education Material Weakness in Internal Control over Compliance and Other Matter Period of Performance Auditor's Recommendation: We recommend that the Organization maintain effective internal controls over period of performance requirements Corrective Action: One City understand the requirements for expenditure of grant funds in the proper period and will work more closely with the funders to ensure that documentation exists when a no cost extension is needed. The new Chief Financial Officer will monitor compliance with the policy and ensure proper documentation exists in the grant management system. Responsible for Corrective Action: Scott R Haumersen CPA, CGMA Shaumersen@onecityschools.org 608-575-4950 Anticipated Completion Date: June 30th, 2026

Finding Number: 2025-021 Planned Corrective Action: As recommended by the Florida Auditor General’s office, FDOE will take the following actions to enhance payment controls to ensure that costs are attributable to the authorized period of performance and are charged to the correct Federal award: 1. Identify the CCDF transactions falling before the October 1, 2024, performance period begin date for grant SMT25 and make the necessary corrections in FLAIR. Those corrections were completed October 31, 2025 and the associated FLAIR records were provided to the Auditor December 11, 2025 by upload to the ShareFile with email confirmation. The identified transactions were for services provided in September 2024 and those transactions were moved to discretionary grant SDI24. The period of performance for grant SDI24 began October 1, 2023, and ends September 30, 2026. These actions resolve the questioned costs the auditor noted. 2. Enhance the Division of Early Learning’s revenue and payment procedures to include verification by the Division’s assigned Revenue and Budget Supervisor that all period of performance information for active grants has been communicated in writing to the Division’s budget and accounting staff. Information will include active grant numbers, project period begin and end dates, amount of awards and obligation periods for all applicable funding streams to include CCDF, TANF, and SSBG. 3. Enhance the Division of Early Learning’s revenue and payment procedures to include periodic expenditure review to ensure no payments are made for a service period falling outside of the performance period of the funding used. 4. Enhance the Division of Early Learning’s revenue and payment procedures to include procedures and timeframes for correcting any errors discovered in the course of periodic expenditure review. 5. Enhance the Division of Early Learning’s revenue and budget procedures to include a multi-layer review and approval process to include the Division’s Budget and Revenue Supervisor and Manager as documented by a signed routing form. Anticipated Completion Date: May 31, 2026 Responsible Contact Person: James Finch

Finding Number: 2025-019 Planned Corrective Action: Bureau of Epidemiology staff will implement a second level review on all expenditures to ensure they occurred in the authorized period of performance and make corrections when errors are identified. Anticipated Completion Date: June 30, 2026 Responsible Contact Person: Brianna Caprioni

Finding Number: 2025-016 Planned Corrective Action: Immunization Section staff will implement a second level review on all expenditures to ensure they occurred in the authorized period of performance and make corrections when errors are identified. Anticipated Completion Date: June 30, 2026 Responsible Contact Person: Tom Bendle

Finding Number: 2025-014 Planned Corrective Action: Expenditures reviewed were for services or travel that occurred in June at the end of the grant budget period/state fiscal year but were paid by the Florida Department of Health (Department, FDOH) in July. During this time new Other Cost Accumulators (OCA) are created to match the new budget period/state fiscal year. Of the 16 expenditures provided to the Public Health Emergency Preparedness Program (PHEP) for review, 11 were for purchasing card (Pcard) charges for travel that occurred at the end of June but cleared in July. Previous year’s codes are not available when clearing Pcard charges from a previous fiscal year. The remaining expenditures were for payments that were redistributed by finance and accounting and could not be charged to current fiscal year OCAs once the new fiscal year began. Language has been added to the PHEP’s checkbook review process to specifically identify expenses that occur at the end of a budget period/fiscal year but are cleared or paid at the beginning of the next fiscal year. A correction will be submitted to move those expenses to the previous fiscal year as appropriate. Anticipated Completion Date: Completed Responsible Contact Person: Jennifer Coulter

Planned Corrective Action: The City acknowledges the finding. Based on the recommendation, the City plans to do the following: • Establish separate program/project accounts within the financial system for each WIC grant award to ensure expenditures are recorded and tracked individually by grant period. • Develop and implement written procedures requiring that all expenditures be reviewed and recorded based on the date incurred relative to the grant’s period of performance. • Perform monthly reconciliations of WIC expenditures by grant to verify that costs are accurately recorded and aligned with the appropriate funding period. • Implement period-end cutoff procedures to ensure expenditures near grant end dates are reviewed and properly assigned to the correct grant period. CHD Fiscal will begin implementing the plan by creating the program codes and will meet with WIC to establish roles for the written procedures. Anticipated Completion Date: 06/30/2026 Responsible Contact Person: Mark Menkhaus, Division Manager

Corrective Action Plan Corrective Action Plan – Uniform Guidance Audit Finding Organization: Scripps Health and Affiliates Federal Agency: U.S. Department of Homeland Security Pass-Through Agency: California Governor’s Office of Emergency Services UEI Number: JJRCL53EXL36 Audit Period: Year Ended September 30, 2025 Finding Reference Number: 2025-001 Federal Program: COVID-19 – Disaster Grants – Public Assistance (Presidentially Declared Disasters) Assistance Listing Number: 97.036 Finding Summary: The organization did not employ an adequate internal control review of payroll expenditures to support activities allowed or unallowed and allowable costs/cost principles related to payroll expenditures reimbursed for the project worksheet. Corrective Action Plan: Additional internal controls to ensure payroll expenditures are reviewed were implemented in late fiscal year 2022 by adopting a new approach to ensure compliant timekeeping. The new approach includes the following steps: revised the timekeeping policy to clarify employee and manager responsibilities, modified “failure to comply” provisions, deployed educational programs for both management and staff, reviewed/improved Kronos and UKG Pro Time and Attendance system automated notifications, and training resources have been available to management and staff via our Scripps intranet site. Leadership monitors policy compliance by individual employee and managers via systemwide reporting on a biweekly basis. Responsible Officials & Contact Person: Brett Tande, Executive Vice President & Chief Financial Officer Scripps Health and Affiliates Expected Completion Date: Completed in fiscal year 2022. As the expenditures in the project worksheet were incurred from the beginning of the COVID-19 pandemic, the corrective action plan put in place during 2022 could not previously remediate the project; however, all payroll expenditures incurred after the end of fiscal year 2022 have these corrective actions in place.

English Language Acquisition State Grants – Assistance Listing No. 84.365 Recommendation: We recommend Boston Public Schools review and enhance its procedures and internal controls to ensure it charges expenditures to the program that are incurred within an award’s allowable period of performance. Boston Public Schools should enhance procedures, implement proper controls, and perform additional training over time and effort reporting. Boston Public Schools should not seek federal reimbursement unless it can substantiate that the time and effort was dedicated to the federal program. Documentation should be readily available for audit. Action taken in response to finding: Boston Public Schools is conducting a full review of all employees charged to Title III to ensure required time and effort documentation is complete and compliant. Name(s) of the contact person(s) responsible for corrective action: Marcela Mahecha, Director of Federal & State Grants, Programs, and Compliance Boston Public Schools Planned completion date for corrective action plan: June 30, 2027

The District has reviewed the audit finding in coordination with its consultant responsible for preparing the quarterly reports. To address this issue, both the consultant and District staff have implemented enhanced scheduling controls, including the establishment of multiple interim deadlines. These measures are intended to ensure timely preparation of draft reports, allow sufficient time for internal review and revisions, and support submission of finalized reports in advance of EPA -required deadlines.

Block Grants for Prevention and Treatment of Substance Abuse (93.959) COVID-19 –Block Grants for Prevention and Treatment of Substance Abuse (93.959) State Agency: Department of Human Services Federal Agency: U.S. Department of Health and Human Services Reporting – Federal Funding Accountability and Transparency Act (FFATA) VIEWS OF RESPONSIBLE OFFICIALS AND CORRECTIVE ACTION PLAN The Department of Human Services, Division of Mental Health and Addiction Services (DMHAS) does not dispute the FFATA upload dates for three (3) of the thirteen (13) subawards tested, but it disputes that such uploads were untimely. One subaward was uploaded only seven (7) days late. DMHAS submits that it substantially complied, no finding should issue and no corrective action is required in that instance. The two (2) remaining awards at issue were funded with the ARPA Block Grant. On March 24, 2025, U.S. DHHS took unprecedented action and issued a notice of early termination of ARPA funding, purportedly for cause because the Covid-19 health emergency had ended. The notice of early termination and subsequent, revised Notice of Award (NOA), required DMHAS to cease all activities. It also sought to revise the original grant terms, retroactive to the original September 1, 2021 project start date. By way of example, the revised NOA also includes new conditions and certifications required to draw down federal funds. DMHAS complied with the notice of early termination and immediately ceased all activities; it stopped issuing subaward letters, it ceased all subaward uploads into its Contract Information Management System, it stopped all reimbursements, and it stopped all FFATA uploads pending or in process. Also in response to the abrupt early termination of funding, DMHAS issued “stop work” orders to all impacted agencies and advised that there was no assurance of reimbursement as of the effective date of notice. Shortly thereafter, DMHAS joined numerous other State authorities and filed a formal complaint in federal district court, alleging that the early termination was unlawful and caused the States irreparable harm. On April 5, 2025, the court entered a temporary injunction and scheduled a hearing for preliminary injunctive relief. U.S. DHHS moved for reconsideration. Several weeks later, the Court entered a preliminary injunction enjoining the enforcement of the early termination of ARPA until further order of the Court. The cessation of FFATA uploads from the March termination to the receipt of injunctive relief was necessary to: 1. Maintain strict compliance with the revised NOA terms and conditions, including the written obligation to cease all activities; 2. Maintain strict compliance with the revised NOA terms and conditions, by issuing “stop work” orders; 3. Ensuring DMHAS’s “stop work” orders were not superseded by FFATA uploads or USA.Spending publications while the request for injunctive relief was pending, so no individual or entity (including the US Office of the Attorney General, US DHHS, or subawardee) could construe the upload as renewed authority to continue to expend funds through subaward end date; 4. Fully protect the prosecution of DMHAS’s claims in the pending, federal litigation, as well as DMHAS’s defenses; and 5. Mitigate DMHAS and subawardee damages in the underlying litigation. Based on the unprecedented early termination of block grant funding and ensuing litigation, DMHAS submits that the timeline to complete FFATA uploads was stayed. Such determination is consistent with the Court’s preliminary injunction, which makes clear that U.S. DHHS immediately treat any actions taken to implement or enforce the early funding terminations, as null and void and rescinded. Therefore, DMHAS should not be issued a FFATA finding that relates directly to the revised NOAs or the direction to cease all activities, and under these extraordinary circumstances, the uploads in question should be classified as non-reportable and immaterial, with no corrective action required. COMPLETION DATE/ CONTACT PERSON & PHONE# January 1,2025 Gordon Horvath, CFO (609) 544-6817 Gordon.Horvath@dhs.nj.gov John Fogliano, Deputy CFO (609) 438-4278 John.Fogliano@dhs.nj.gov

Finding Number: 2025-003 Condition: The project description in the grant award specified that activities would be performed within disadvantaged opportunity zones. However, during the period of performance, DWSD incurred $4.1 million in expenditures related to lead service line replacements that were performed outside of those designated zones. At the time the costs were incurred, DWSD did not have controls in place to ensure that project activities continued to align with the geographic requirements of the award or to promptly notify the granting agency when activities could not be performed as originally planned. Planned Corrective Action: DWSD has since implemented geographical verification controls that incorporate grant standards, aligned checklists and policy updates. Pre-expenditure approval process will be strengthened including training. Contact person responsible for corrective action: Istakur Rahman Anticipated Completion Date: 6/30/2026

Identifying Number: 2025-003: U.S. Department of Education: Federal Direct Student Loans – 84.268 Finding: During testing over enrollment reporting, one instance was identified where a student’s program begin date was incorrectly reported to NDSLDS. Corrective Action Taken or Planned: There were several instances of dates submitted through the National Student Clearinghouse to NSLDS where dates were not aligning to submissions. In all but one case, those dates were confirmed to be matching the NSC submission and were not found to be erroneous. The one date is suspected to be due to a program change and those students with changes will be monitored by the Registrar and the Financial Aid Office. Contact person: Micah Hansen, Director of Financial Aid Status of finding – The above corrective actions will be implemented beginning January 1, 2026.

Dear Mr. Waguespack, Please find below the University's management response to the audit finding titled "Control Weakness and Noncompliance with Special Tests and Provisions Requirements." Management Response The University concurs with the finding. This letter is provided in response to the audit finding related to Special Tests and Provisions requirements. The audit identified that UL Lafayette did not have adequately designed controls to ensure compliance with federal award requirements related to key personnel effort. Specifically, the auditors noted that key personnel were not involved in the project at the level required by the federal award or proposal submissions, prior approvals for changes in effort were not obtained from the federal grantor agency or pass-through entity when required, and time and effort certifications for key personnel were not sufficient to certify that the required level of effort was met. Additionally, the audit determined that UL Lafayette did not have adequate controls in place to monitor key personnel effort on a timely basis to ensure required effort levels were maintained and that prior written approvals were obtained when applicable. The auditors further noted that annual and semiannual certifications alone were not sufficient to timely detect changes in key personnel effort that would require prior approval. Our primary focus has been on ensuring that salaries charged to sponsored projects were accurate and did not exceed approved budgetary limits as required by sponsors. We are actively developing and implementing a documented procedure for effort reporting to address this issue going forward. Corrective Action Plan Dr. Kumer Das, the Interim Vice President of Research, Innovation and Economic Development will be responsible with overseeing all corrective actions to address this finding and strengthen compliance with federal key personnel effort monitoring requirements. The following corrective actions have been implemented or are in progress: 1. Realignment of Research Administration Functions • Effective May 29, 2025, pre-award and post-award operations were consolidated under the Vice President for Research. This structural realignment strengthens oversight, improves coordination of proposal commitments and post-award monitoring, and enhances accountability across the grant lifecycle. 2. Comprehensive Business Process Mapping • The University engaged Ellucian to conduct a comprehensive review of end-to-end grant management workflows. This process mapping initiative evaluated roles, responsibilities, and control points related to proposal development, award setup, payroll distribution, and effort certification. Knowledge transfer sessions have been scheduled for March and April 2026 with Ellucian consultants to support implementation of revised procedures and internal control enhancements. 3. Effort Tracking, Reconciliation, and Certification To address the identified deficiencies, the University is implementing the following control enhancements: • Pre-Award Commitment Review: At the time of proposal submission, Pre-Award staff will review and document key personnel effort commitments to ensure proposed effort is reasonable, attainable, and aligned with institutional responsibilities. A centralized key personnel commitment tracker is under development and will be implemented by March 31, 2026. • Award-Level Commitment Reconciliation: Upon receipt of an award, the tracker will be updated to reflect sponsor-approved effort commitments. This will establish the baseline for post-award monitoring. • Quarterly or Semester-Based Effort Reviews: In addition to formal bi-annual certification cycles, the University will implement quarterly or semester-based internal effort reviews to provide timely identification of changes in key personnel commitment levels. The revised Standard Operating Procedure (SOP) will reflect this change. • Ongoing Monitoring and Payroll Reconciliation: Based on effort reviews, Post-Award will perform reconciliations of payroll charges and compare actual effort to committed effort levels. Variances will be reviewed with the Principal Investigator. Where reductions in effort exceed sponsor thresholds (e.g., greater than 25% reduction or disengagement exceeding three months), the Office of Research Administration and Compliance (ORAC) will determine whether prior approval or sponsor notification is required and will document the resolution. The University remains committed to making continuous improvements and appreciates your understanding of support as we address these challenges.

Dear Mr. Waguespack: The Department of Children and Family Services (DCFS) acknowledges receipt and concurs with the audit finding titled, “Noncompliance with and Control Weaknesses over Foster Care Requirements”. DCFS continually strives to enhance its internal processes and controls and remains committed to implementing corrective actions to ensure compliance with federal and state regulations. As part of our corrective action plan for this finding, DCFS is updating policy and practice to ensure that the retention of documentation associated with criminal records checks and the State Central Registry Clearances for foster/adoptive caregivers are clearly addressed in policy. Policy related to the retention of documentation related to these checks will be reviewed with all DCFS staff in the monthly policy meeting. DCFS will develop and implement training specifically for Home Development staff. This training will address the proper completion of required forms as well as the retention of criminal records checks and State Central Registry Clearances following closure of the foster/adoptive caregiver's home. The anticipated date of completion is June 30, 2026. DCFS is strengthening internal controls by modernizing the authorization process to require digital approvals. This system upgrade will mandate that service authorizations are finalized before services begin, ensuring all Foster Care payments align with federal and state eligibility requirements. Furthermore, the digital platform will centralize documentation tracking, ensuring continuity of records and compliance even during staff transitions or vacancies. Training will be provided to all Child Welfare administrative and professional-level staff on the new process. The anticipated date of completion is June 30, 2026. Should you require additional information, please contact Connie Guillory, Assistant Secretary of Child Welfare, at 337-793-0017 or Connie.Guillory.DCFS@LA.GOV.

Dear Mr. Waguespack, Thank you for your diligence in conducting the recent audit of the Student Tuition Assistance and Revenue Trust Programs (START). We have carefully reviewed the audit finding and concur with the assessment of “Noncompliance and Control Weakness Over Gear Up Scholarship” for the period ending December 31, 2024. Management has contacted the grantor for further instructions for returning the unspent scholarship funds to the grantor. Porsche Harris, START Director, will be responsible to ensure compliance with federal regulations for the return of GEAR UP funds or the redistribution as well as the development of written policies and procedures and staff compliance with that information in accordance with federal regulations. Anticipated completion date is December 31, 2025. We value your ongoing partnership and appreciate the cooperation of your staff throughout the audit process. Please let me know if you have any questions or require further information.

Finding Number: 2025-035 Finding: The Department of Children, Youth, and Families improperly charged $543,205 to the Child Care Development Fund program. Program: 93.575 – Child Care and Development Block Grant 93.575 – COVID-19 Child Care and Development Block Grant 93.596 – Child Care Mandatory and Matching Funds of the Child Care and Development Fund Compliance Requirement: Period of Performance Questioned Costs: $543,205 Status: Corrective action not taken Corrective Action: The Department does not agree with the State Auditor’s Office (SAO) finding that $543,205 in expenditures were improperly charged to the Child Care and Development Fund (CCDF) grants during fiscal year 2025. The Department utilizes grant-level management for all federal funds and makes grant adjustments between allowable grant sources to properly spend grant dollars within the allowable period of performance. The questioned costs reported by the auditors were proper charges and met period of performance requirements, as follows: • $169,052 were expenditures charged to the CCDF grant prior to the grant start date but were later corrected in state fiscal year 2026. The Department provided documentation showing the adjustment, but it was not considered by SAO because the correction occurred outside the audit period. • $6,152 were questioned costs for the federal fiscal year 2024 CCDF grant which were applied as offset to recoveries in the correct period. All funds were appropriately documented and returned to the federal grantor as evidenced in the quarterly claims. Expenditures were obligated and expended within the allowable grant period. • $368,001 were initial expenditures recorded in the proper liquidation period that were charged to the CCDF Discretionary grant. The Department then processed an accounting adjustment in September 2024 to leverage the available grants’ funds per our grant-level management practice. Although the adjustment was processed in calendar month October 2024, it was recorded in the proper fiscal month in accordance with state financial reporting standards. When the Department of Health and Human Services (HHS) issues a management decision letter for the fiscal year 2025 finding, the Department will work with HHS and follow the audit resolution process. Prior Findings: The conditions noted in this finding were previously reported in findings 2024-058, 2023-061, 2022-043, 2021-037, and 2020-041. Completion Date: Not applicable Agency Contact: Stefanie Niemela External Audit Liaison (360) 725-4402 stefanie.niemela@dcyf.wa.gov

Finding Number: 2025-030 Finding: The Department of Commerce improperly charged $131,015 to the Low-Income Home Energy Assistance Program. Program: 93.568 – Low-Income Home Energy Assistance Program Compliance Requirement: Period of Performance Questioned Costs: $131,015 Status: Corrective action in progress Corrective Action: The Department agrees that internal controls should be strengthened for the review and approval of administrative expenses. The Low-Income Home Energy Assistance Program (LIHEAP) management is working with accounting, budget, and the internal controls departments to create a process and workflow in which all LIHEAP administrative expenditures are reported, reviewed, and approved to ensure all expenditures are within the applicable period of performance and are adequately documented. However, the Department disagrees with the questioned costs identified in the finding and maintains that they were expended in compliance with the Code of Federal Regulations and the guidance provided by the U.S. Department of Health and Human Services (HHS). The Department will consult with HHS on the questioned costs identified in the finding. Prior Findings: The conditions noted in this finding were previously reported in finding 2024-050. Completion Date: Estimated September 2026 Agency Contact: Gena Allen, CFE Internal Control Officer (360) 480-5149 Gena.Allen@Commerce.wa.gov

Management response Finding 2025-001 – Allowability and Period of Performance (Material Weakness) View of Responsible Official: Management concurs with the finding. During the audit period, controls over payroll documentation for FEMA-related labor costs were not sufficiently designed and documented to demonstrate independent supervisory review and approval of timecards, nor were controls in place to evidence review of wage rates for reasonableness prior to charging labor costs to the award. Management has strengthened its control procedures. Supervisors are required to review and approve employee timecards each pay period in UKG, and compliance with timecard approval is monitored through exception reporting provided to management. In addition, management has implemented a review control over wage rates charged to FEMA claims to verify that rates used are supported and reasonable in accordance with applicable Uniform Guidance requirements and internal policy. These controls will be documented and retained as part of the support for future federal award reporting. Responsible Parties: Payroll Manager, Director of Finance, Vice President of Finance Anticipated Completion Date: Complete

Responsible Executive: CEO – Carmela Slivinski Implementation Status: Effective Immediately Full Implementation Date: No later than June 30, 2026 Finding — Compliance (Period of Performance) Significant Deficiency Condition: Auditor noted while testing period of performance, 1 of the 10 expenses recorded in June 2025 pertained to subsequent months outside of the contract period. Effect: One expense was included in the expenditure report under the incorrect grant period ending June 30, 2025. Cause: The Organization noted that this finding came about due to a clerical error. The bookkeeper inadvertently recorded a July invoice on June 30th and this led to an incorrect charge to the grant period ending June 30th. Recommendation: Auditor recommends management continue to perform a second review on the grant submission especially towards the end of the grant period. Management’s Response: Management concurs with the finding regarding deficiencies in grant period-of-performance compliance. Corrective Action Plan - Review existing Accounts Payable and Accounting Controls processes and revise as needed to ensure expenses are recorded as required. - Staff Training and Competency Development conducted annually to review accounting controls and ensure accounting personnel understand period of performance grant compliance requirements. - Ongoing Monitoring and Internal Compliance Review conducted periodically to ensure oversight of financial controls and grant compliance.

COMMONWEALTH OF PUERTO RICO MUNICIPALITY OF CATAÑO Corrective Action Plan For the Fiscal Year Ended June 30, 2025 _____________________________________________________________________________________________________________________ Audit Report: Reports on Compliance and Internal Control in Accordance with Government Auditing Standards and OMB Super Circular Uniform Guidance Audit Period: July 1, 2024 – June 30, 2025 Fiscal Year: 2024-2025 Principal Executive: Hon. Julio Alicea Vasallo, Mayor Contact Person: Mrs. Honoris Machado, Finance Director Phone: (787) 788-0404 Original Finding Number 2025-002 Statement of Concurrence or Nonconcurrence: We concur with the finding. Corrective Action: Objective of the plan: The objective of this Corrective Action Plan is to address the observations identified in the audit and establish preventive measures to avoid future recurrences. Corrective Actions: 1. Schedule restructuring: • Create a detailed calendar with clear dates to define intermediate delivery deadlines to avoid delays (collection of information, analysis, writing, review, and submission) 2. Implementation of alerts and reminders: • Set up automatic alerts and email reminders for key dates (for example, 3 days before each deadline) 3. Review and Quality Control: Establish an internal review of reports before final submission to ensure that the information reported is accurate and complete. The revision includes compliance with the requirements established by the agency. Compliance Monitoring: • Biweekly meetings: The team will have biweekly meetings to have updates regarding the progress and achievement of the deadlines. • Email notifications: Emails will be sent to document the timely submission of reports and when needed, waivers will be requested explaining situations that may have delayed the process to prepare accurate and complete reports on time. Evaluation: • Monthly evaluations will be performed to measure the compliance of the submission of the reports on the timeframe established by the agency. • Adjustments to the processes according to the response of the team. Implementation Date: Fiscal Year 2025-2026. Responsible persons: • Person responsible for the implementation: Mr. Carlos Flores, Federal Program’s Subdirector • Person responsible for the supervision: Mrs. Yolanda Maldonado, Federal Program’s Director

SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE AND OTHER MATTERS U.S. Department of Justice 2025-002 Department of Justice Second Chance Act Community-based Reentry Program – Assistance Listing No. 16.812 Recommendation: We recommend that TASC follow its established procedures for charging allowable expenses to the grant during the period of performance. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will follow established procedure to make sure costs are recorded in the proper period. Management will review the procedure with all accounting staff. Name(s) of the contact person(s) responsible for corrective action: Roy Fesmire, CFO Planned completion date for corrective action plan: June 30, 2026

Reference Number: 2025-021 Prior Year Finding: No Federal Agency: U.S. Department of Health and Human Services State Agency: Department of Health and Social Services State Division: Division of Medicaid and Medical Assistance Federal Program: Children’s Health Insurance Program Assistance Listing Number: 93.767 Award Number and Period: SAI000005399 (10/1/2023 – 9/30/2024) Compliance Requirement: Period of Performance Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance Recommendation: The Division should review and enhance its procedures and internal controls to ensure that it maintains documentation that expenditures charged to the program are incurred within an award’s allowable period of performance. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: To prevent recurrence, we are implementing the following actions: 1. Enhanced Monitoring Controls o Establish a centralized tracking system for all awards, including start and end dates. 2. Staff Training and Accountability o Conduct mandatory training for program and finance staff on compliance with period of performance requirements. o Assign clear responsibility for monitoring award timelines to designated personnel. 3. Pre-Closeout Review Process o Introduce a formal pre-closeout review 60 days before the award end date to identify and resolve outstanding obligations. o Require certification from both program and finance leads confirming that all expenditures fall within the allowable period. 4. Post-Expenditure Review o Perform monthly reconciliation of expenditures against the period of performance. o Immediately flag and correct any discrepancies identified. Name(s) of the contact person(s) responsible for corrective action: Joel Riley – Program Integrity Chief Anthony Yeager – Fiscal Manager Planned completion date for corrective action plan: July 31, 2026