Corrective Action Plans

Audit Finding Reference: 2026-001 (Federal) Eligibility - Child and Adult Care Food Program, Assistance Listing 10.558 Planned Corrective Action: • Initial determination and first-level review. Participant eligibility is determined by the Site Director in accordance with the applicable CACFP Income Eligibility Guidelines. Income Eligibility Application forms are reviewed for completeness and accuracy by the Site Director. • Independent secondary review. Beginning September 2026, before any determination is transferred to the Master List used for claim reimbursement, TEAM's Early Childhood Quality Assurance Manager will independently review each determination by recalculating reported household income and household size and comparing the result to the current program-year Income Eligibility Guidelines. This applies to 100% of initial determinations and to every re-determination or mid-year change in reported household income or household size. • Guideline currency. The Quality Assurance Manager will obtain the Income Eligibility Guidelines issued for each program year upon publication, confirm that the table in use is the current-year table. • Documentation. The reviewer initials and dates each Income Eligibility Application. The eligibility category recorded on the Master List is traced to the reviewed form. Reviewed forms are retained for audit. • Correction of the identified errors. The two participants identified in the finding were reclassified as of April 2026. The claims will be amended post CACFP review in September 2026. Name of Contact Person: Jamie Peterson, Lead Director of Early Childhood Jpeterson@teaminc.org Designated backup: Jamie Cullen, Early Childhood Quality Assurance Manager jcullen@teaminc.org 203.757.8888 x3241 Completion date: September 15, 2026

FA 2025-004 Improve Controls over Special Reporting Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass- Through Entity: Assistance Listing Numbers and Titles: Federal Award Number: Questioned Costs: Reporting Significant Deficiency None U.S. Department of Agriculture Georgia Department of Education 10.553 - School Breakfast Program 10.555 - National School Lunch Program 255GA324N1199 (Year: 2025) None identified Description: The policies and procedures of the School District were insufficient to provide adequate internal controls over the monthly Claims for Reimbursement process. Corrective Action Plans: The School District will strengthen policies, procedures, and internal controls over the monthly Claims for Reimbursement process to ensure claims are accurate, properly supported, reviewed, and submitted timely. • Review and document procedures for preparing and submitting the monthly DE0106 Claim Data reports, including reconciliation to supporting meal count records. • Require reconciliation of DE0106 claims to the corresponding DE0112 Breakfast and DE0118 Lunch reports prior to submission. • Establish a documented secondary review and approval process for monthly reimbursement claims to verify accuracy, completeness, and allowable expenditures. • Maintain supporting documentation for each claim, including meal count reports, reimbursement calculations, and evidence of review and approval. • Provide training to Child Nutrition and Finance personnel responsible for preparing, reviewing, and submitting reimbursement claims. • Conduct periodic internal reviews of submitted claims to identify and correct errors and endure procedures are consistently followed. Estimated Completion Date: June 30, 2027 Contact Person: Kimberly Harrison Telephone: 912-427-1000 Email: kharrison@wayne.k12.ga.us

FA 2025-003 Improve Controls over Procurement and Suspension and Debarment Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass- Through Entity: Assistance Listing Numbers and Titles: Federal Award Number: Questioned Costs: Procurement and Suspension and Debarment Material Weakness Material Noncompliance U.S. Department of Agriculture Georgia Department of Education 10.553 - School Breakfast Program 10.555 - National School Lunch Program 255GA324N1199 (Year: 2025) $333,778 Description: A review of expenditures charged to the Child Nutrition Cluster revealed that the School District's internal control procedures were not operating appropriately to ensure that the School District's procurement and suspension and debarment procedures were followed. Corrective Action Plans: The School District concurs with the finding and will strengthen internal controls to ensure that all expenditures charged to the Child Nutrition Cluster comply with applicable federal procurement and suspension and debarment requirements. • Review and update procurement procedures for federally funded Child Nutrition purchases to ensure compliance with federal, state, and District requirements. • Require documentation of suspension and debarment verification for applicable vendors prior to purchases using federal funds. • Implement a federal procurement checklist to document required quotes, approvals, procurement methods, and vendor eligibility verification. • Provide training to Finance, Purchasing, and Child Nutrition personnel on federal procurement and suspension/debarment requirements. • Conduct periodic reviews of Child Nutrition expenditures to verify that procurement and vendor verification requirements are being followed and properly documented. Estimated Completion Date: June 30, 2027 Contact Person: Kimberly Harrison Telephone: 912-427-1000 Email: kharrison@wayne.k12.ga.us

FA 2025-002 Strengthen Controls over Expenditures Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass- Through Entity: Assistance Listing Numbers and Titles: Federal Award Number: Questioned Costs: Activities Allowed or Unallowed Allowable Costs/Cost Principles Significant Deficiency Nonmaterial Noncompliance U.S. Department of Agriculture Georgia Department of Education 10.553 - School Breakfast Program 10.555 - National School Lunch Program 255GA324N1199 (Year: 2025) $36,927 Description: A review of employee compensation expenditures and journal entries related to the Child Nutrition Cluster revealed that the School District’s internal control procedures were not operating appropriately to ensure that employee compensation and journal entries were appropriately reviewed, approved, and documented. Corrective Action Plans: The School District will strengthen internal controls to ensure that employee compensation and journal entries charged to the Child Nutrition Cluster are properly reviewed, approved, supported, and documented. • Review and document procedures for processing and allocating employee compensation charged to the Child Nutrition Cluster. • Require appropriate supervisory review and approval of employee compensation, including time and effort documentation, payroll allocations, and related supporting documentation. • Establish a documented review and approval process for journal entries affecting Child Nutrition funds, including verification of account codes, amounts, supporting documentation, and proper authorization. • Provide training to Finance and Child Nutrition personnel on payroll documentation, allowable costs, journal entries, and federal grant requirements. • Conduct periodic reviews of payroll expenditures and journal entries to ensure required approvals and supporting documentation are maintained and any errors are identified and corrected timely. Estimated Completion Date: June 30, 2027 Contact Person: Kimberly Harrison Telephone: 912-427-1000 Email: kharrison@wayne.k12.ga.us

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

Finding Number: 2025-029 Finding Name: Failure to Retain Detailed Transactions for Summer EBT Program Beneficiary Payments Finding Condition(s): The Illinois Department of Human Services (IDHS) did not retain transaction-level detail for beneficiary payments under the Summer Electronic Benefits Transfer Program for Children (Summer EBT) program. Name of Contact Person(s): • Elizabeth Lusk, Social Service Program Planner – Illinois Department of Human Services, Family and Community Services • Kasey Reagan, Division Director – Illinois Department of Human Services, Family and Community Services Corrective Action(s): The IDHS and its partners maintain detailed records of beneficiaries and the data will be made available in future inquiries. Specific corrective actions that the IDHS will complete to ensure the data is available for future audits include the following: • The IDHS has reached out to its partners to prepare for potential information requests for fiscal year 2025 and future fiscal year inquiries. (Completed as of 09/14/26) • The IDHS’ SNAP staff and the IDHS’ Federal Reporting staff will meet to discuss the Summer EBT process and the data used in reconciliation. (Completed as of 09/21/26) • The SNAP program area will draft procedures related to how the program is funded initially and throughout each grant year. (Proposed Completion Date: 12/01/26) • The SNAP staff will create a data reconciliation spreadsheet and save the document on a SharePoint site for shared use with Federal Reporting staff. (Proposed Completion Date: 12/01/26) • The Federal Reporting staff will add claiming data to the data reconciliation spreadsheet. (Proposed Completion Date: 12/01/26) • The Federal Reporting staff will document the process used to sample data from the reconciliation spreadsheet and compare it to the detail on the Fidelity Information Services (FIS) transaction file. Proposed Completion Date: December 1, 2026

Finding No.: 2025-004 Federal Agency: U.S. Department of Agriculture AL Program: 10.555 Child Nutrition Cluster Federal Award No.: 7GU300GUB Area: Reporting Questioned Costs: $0 Views of Auditee and Corrective Actions GDOE acknowledges the finding. The corrective action addresses the variances in the first and third quarter FY 2025 FNS-777 reports, related accounting records and reconciliations, and the subawards that were not reported as required by the Federal Funding Accountability and Transparency Act. Plan of action and completion date: The GDOE Business Office will reconcile applicable MUNIS expenditures against CNP claim and reimbursement records, draw requests, ASAP draw confirmations, bank receipts, MUNIS revenue entries, accounts receivable and other applicable receivable records, and documented adjustments. Differences among amounts requested, drawn, received, and recorded in MUNIS will be documented and resolved. Each quarterly FNS-777 will be supported by a line-by-line workpaper prepared by the GDOE Business Office and provided to GDOE FNSMD CNP, identifying the authoritative source for prior-period amounts, current period outlays, valid unliquidated obligations, federal funds authorized, adjustments, and the unobligated balance. An ASAP draw alone will not determine whether an amount is reported as an outlay or an unliquidated obligation. An earned reimbursement that has not yet been drawn may be recorded as a receivable for reconciliation purposes but will not automatically be reported as an unliquidated obligation. Separately, the GDOE Business Office will establish its controls under 2 CFR part 170 to identify and timely report each CNP subaward of $30,000 or more in the applicable federal system (FSRS). In coordination with GDOE FNSMD CNP, the GDOE Business Office review the FY 2025 subawards, submit any permitted late or corrective reports, and retain evidence of submission or final disposition. Plan to monitor and responsible officials: GDOE FNSMD CNP will conduct monthly follow-ups with the GDOE Business Office to monitor progress and ensure that activities remain on track for completion within the established timelines. Reconciliations will be performed quarterly to ensure that all financial transactions for the quarter are accurately recorded, supported, and ready for required reporting. The GDOE FNSMD CNP Administrator, Anthony S. Monforte and CNP Program Coordinator, Franklin J. Cruz will oversee the reconciliation and reporting controls. The Controller or designated GDOE Business Office official will be responsible for ASAP draws, MUNIS records, cash receipts, receivables, draw confirmations, federal subaward reporting, and supervisory review. The corrective actions will be implemented by October 1, 2026, and first applied to the FY 2027 first quarter reporting cycle. For each quarterly filing, GDOE FNSMD CNP will retain the completed reconciliation, preparer and reviewer sign-offs, and evidence of supervisory review, including supporting documentation provided by the GDOE Business Office, as applicable. The responsible officials will also document an annual review of the control process.

FINDING 2025-004 Finding Subject: Child Nutrition Cluster –Allowable Costs/Cost Principles Contact Person Responsible for Corrective Action: James Lutaaya, Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, jlutaaya@sbcsc.k12.in.us, atahmid@sbcsc.k12.in.us, mjohns2@sbcsc.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Human Resources worked with Regional Data Services to identify the cause of the issue and made corrections to prevent the data being lost on the administrative side moving forward. This involved updates to software stores and archives. PAYROLL EXPENDITURES All compensation an employee receives must go before the School Board for approval prior to the pay. Approvals are retained in the form of Personnel Requisitions, Union Contracts, Board Personnel Approval. Pay Change Process: Stipend Approval Process: STEP ACTIVITY PRIMARY EMPLOYEE LEVEL REVIEWED BY NOTE 1 Create Employee Change Personnel Requisition (in Applicant Tracker or on paper) Employee's Supervisor School / Department Department Supervisor Be specific and fill in all fields. 2 Submit to the Department Supervisor for Review & Approval Employee's Supervisor School / Department Department Supervisor 3 Submit to Human Resources for Review & Approval Department Supervisor Central HR HR will review to ensure compliance with approved salary and job titles 4 Submit to Finance for Review & Approval HR Central Finance Finance will verify vacant positions exists and provide funding information. 5 Submit to Human Resources for Processing Finance Central HR HR will update the employee's information in financial / employee software 6 Verify Accuracy of Updates HR - 2nd employee Central n/a 7 Save a Copy of all Requisitions HR Central n/a 8 All pay changes are included in the Personnel Report that is submitted to the Board to obtain approval. HR Central School Board This includes position changes, job title changes, raises, transfers, etc. INDIANA STATE BOARD OF ACCOUNTS 88 OVERTIME APPROVAL POLICY All overtime hours must receive prior approval from a supervisor or manager before extra hours are worked. Employees are not permitted to work overtime without explicit approval, except in emergency situations where prior approval is not feasible. Failure to obtain approval may result in the overtime hours being unpaid or other disciplinary actions. To request overtime, employees must submit a request to their supervisor with a brief explanation of the need for additional hours. Approval will be granted based on workload requirements and budget considerations. Corrected Date: 06/30/2026 INTEGRITY • ACCOUNTABILITY • EMPOWERMENT ACADEMIC QUALITY | EQUITY, INCLUSION & JUSTICE | FINANCIAL SUSTAINABILITY | COMMUNITY PARTNERSHIPS 737 Beale Street • South Bend, Indiana 46616 • 574-393-6100 • sb.school

CORRECTIVE ACTION PLAN FINDING 2025-003 Finding Subject: Child Nutrition Cluster – Activities Allowed or Unallowed, Allowable Costs/Cost Principles Contact Person Responsible for Corrective Action: James Lutaaya, Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, jlutaaya@sbcsc.k12.in.us, atahmid@sbcsc.k12.in.us, mjohns2@sbcsc.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: VENDOR CLAIMS Accounts payable is ensuring that all required documentation and approvals are completed prior to processing any and all payments. Including verifying that a board approved contract is in place, if applicable. This is in accordance with our IC Manual. The Director of Food & Nutrition (DFN) will review all invoices to ensure expense appropriateness and identify expenditures that cannot be included/paid. DFN will communicate with the vendor to ensure updates are made and a new invoice is created as applicable. DFN will sign the invoice to verify the charges are correct and can be paid. SBCSC terminated its contract with the Food Service Management Company effective June 30, 2026. Corrected Date: 06/30/2026

2025-001 Reporting on USDA Foods Corrective action planned: Anticipated completion date: Contact person responsible for corrective action: Pmtners INW will implement a monthly reporting procedure requiring a documented inventmy reconciliation of each USDA program to the provided bills of lading prior to submission to WSDA. Each invent tory reconciliation will be reviewed and signed by a staff member who did not prepare the repmt. These reconciliations will be retained alongside monthly program inventmy repmts. Target: October 31 st . We will begin immediately with the first dual verification repmt being completed for the month of September. Justin Carlile JustinC@partnersinw.org

Recommendation: The Organization should implement an effective monitoring system to keep track of the compliance calendar, which includes financial reporting deadlines, and automatic reminders in advance of each deadline to aid in properly planning and timing submission of reporting packages. Additionally, the Organization should engage the audit firm well before the fiscal year-end. The Organization should establish a timeline with the auditors that aligns with internal deadlines to ensure sufficient time to conduct the audit. Additionally, the Organization should implement a system that will file documents in an organized manner and make them easily accessible to the Organization and auditors. Furthermore, the Organization’s Board of Directors should be more actively engaged in the auditing and reporting process to establish a greater degree of accountability and oversight. Anticipated Completion Date: 05/31/2027 Actions Taken: The Organization has begun implementing the above-mentioned recommendations. The Organization will ensure that it has a working monitoring system of the compliance calendar to assist in meeting the reporting deadline. Additionally, the Organization has already engaged the audit firm for its upcoming fiscal year-end, and the audit firm has put it on its calendar to begin the audit process well in advance. The Organization’s board of directors has agreed to oversee the auditing and reporting processes to a greater extent. They have also begun working on developing a more organized filing system for the Child Nutrition programs’ documents and training staff members about the reporting requirements. With these actions, the Organization expects to comply with the Uniform Guidance for single audits deadline for the fiscal year end August 31, 2026. Rabbi Yanky Bodenheimer, executive director, has been designated to monitor the plan of corrective action for this finding. He can be reached at 845-425-4880. Contact Person Responsible for Corrective Action: Yanky Bodenheimer, Executive Director.

On behalf of the finding 25-03- The following changes will be implemented: Food purchases will be reconciled to planned menus, required portion sizes, actual meals served, and vendor purchase records. Shopping lists will be prepared and maintained based on menu requirements and the anticipated or actual number of servings. Commodity items, substitutions, changes in quantities, and other variations between planned purchases and actual food usage will be clearly documented and explained. Management will review the reconciliation records periodically to ensure that food purchases are reasonable, properly supported, and consistent with program requirements. The enforcement of the procedure of business credit card purchases will be in effect starting October 2026.

FA 2025-002 Improve Controls over Expenditures Compliance Requirements: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: Assistance Listing Numbers and Titles: Federal Award Number: Questioned Costs: Description: Activities Allowed or Unallowed Allowable Costs/Cost Principles Procurement and Suspension and Debarment Significant Deficiency Nonmaterial Noncompliance U.S. Department of Agricu lture Georgia Department of Education 10.553 - School Breakfast Program; 10.555 - National School Lunch Program 255GA324N1199 (Year: 2025) $40,701 A review of expenditures charged to the Child Nutrition Cluster revealed that the School District's internal control procedures were not operating appropriately to ensure that expenditures were appropriately reviewed, approved, and documented. Corrective Action Plans: Procedures have been reviewed with program and department leaders to ensure that all expenditures have proper approval before submitting for payment. Expenditures without proper approval will be returned to the responsible department. Board Policy DJED has been reviewed with all department heads to ensure understanding of policy and requirements for obtaining mult iple quotes for certain thresholds. Guidelines have been reviewed with the program manager and school nutrition bookkeeper to ensure all expenditures are recorded in the correct fiscal years. Estimated Completion Date: August 31, 2026 Contact Person: Stephanie Clark, Chief Financial Officer Telephone: 912-876-4854 Email: sclark@liberty.k12.ga.us

School District Response: (Corrective Action) The District continually evaluates its internal staffing structure and segregation of duties to determine the cost-benefit of additional personnel. The Board of Directors has determined that the cost of additional staffing is not feasible at this time. As compensating controls over federal program activity, the following procedures will be maintained and enhanced: 1. Management will provide monthly financial reports, accounts payable listings, and supporting documentation to the Board of Directors for review and approval. 2. Management will perform ongoing monitoring of federal program expenditures and related cash disbursement transactions to identify errors, irregularities, or noncompliance on a timely basis. 3. To the extent practical, responsibilities for authorization, recordkeeping, custody of assets, and reconciliation of federal program transactions will be distributed among available personnel. 4. The Board and management will annually reassess the assignment of duties and the cost-benefit of additional staffing to strengthen segregation of duties over federal programs. Anticipated Completion Date: The compensating control procedures are ongoing. Responsible Person for the Corrective Action: Christopher McHugh, Business Manager

Plan of Action: The District will continue to strengthen its internal controls over the recording, reconciliation, and classification of federal and state grant revenue. The District will establish and implement a documented federal grant revenue reconciliation process to ensure that revenue recorded in the general ledger agrees with Oregon Department of Education payment records and applicable grant reports. Responsible Party: Business Office Manager (or equivalent) Timeline for Implementation: Within 60 days: Develop written federal revenue reconciliation procedures and establish a federal/state revenue coding reference Next Quarterly reporting cycle: Begin revenue reconciliations and secondary review. Before year-end reporting: Complete a comprehensive reconciliation of revenue to ODE records. Ongoing: Monitor compliance, correct identified errors, and update procedures as needed. Monitoring: The Accountant will monitor quarterly federal revenue reconciliations to ensure Child Nutrition Cluster revenue is accurately recorded, properly classified, and supported by ODE documentation. The Director of Business Services or designee will perform bi-annual reviews of selected transactions to verify that payments are not duplicated, revenue is coded correctly, supporting documentation is maintained, and required reviews are completed. Any exceptions will be documented, corrected promptly, and used to determine whether additional training or procedural changes are needed:.

Plan of Action: The District will strengthen internal controls over the preparation, review, submission, and retention of monthly child nutrition reimbursement claims. Recent staffing changes within the Food Services Department will support more efficient and consistent monitoring of claims. The District will provide training to employees responsible for meal count reporting and reimbursement claims, establish a documented review process prior to claim submission, and implement procedures to ensure that all required supporting documentation is maintained and readily available for audit. 1.The Food Service Supervisor will provide training to all staff responsible for meal counting, meal count reconciliation, claim preparation, and claim submission. 2.The Food Services Supervisor or designated reviewer will independently review each monthly reimbursement claim before submission to the state reporting system. 3.Food service staff will reconcile daily meal counts and differences will be investigated and resolved before the claim is submitted. Responsible Party: Food Services Supervisor Timeline for Implementation: Within 60 days: Implement review and reconciliation procedures Ongoing: Monthly reconciliations and periodic staff training Monitoring: Documentation of the following information will be kept to ensure compliance: Montly reconciliations Staff Training Written claim procedures Copies of submitted claims

Audit Finding Reference: 2025-001 Food Services Planned Corrective Action: At the close of each month, a secondary reviewer will verify the monthly reimbursement claim before the Food Service Director submits it through the secure DESE portal. Planned Implementation Date of Corrective Action: September 2026 (first claiming month of new fiscal year) Persons Responsible for Corrective Action: Bonita Chen, Food Services Director Kirsteen Patterson, Director of Finance and Operations

Inadequate Physical Inventory Procedures - Nutrition - OPI - The Montana Office of Public Instruction partially concurs with this finding. The 1,000 cases of beef arrived on June 12 for the next fiscal year, while the physical inventory count occurred on June 3. The order had been entered into MAPS before the count, but the product had not yet arrived at the warehouse. When MAPS reporting was run after June 12, during verification, the beef appeared in the system even though it was not present during the physical count. The product was distributed during the following school year. This discrepancy was due solely to timing between delivery, system entry, and the inventory count. Because of staff turnover, the employee entering inventory into MAPS was not aware that items should only be entered once they are physically received. The invoice was entered before delivery, while inventory was being performed, creating a short‑term difference between the MAPS count and the actual inventory. This was a training issue, and staff have now been instructed on correct inventory procedures. Responsible Party - April Grady, Chief Financial Officer, Montana Office of Public Instruction Target Implementation Date - 12/31/2026

Managementconcurswiththefindingandwillimplementadailypoint-of-servicemealcountlogforeachmealservice,reconciledtoclaimsbeforesubmissionfor reimbursement. A designated staff member will maintain and retain these records for at least three years.

SIGNIFICANT DEFICIENCIES IN INTERNAL CONTROL OVER COMPLIANCE – U.S. DEPARTMENT OF AGRICULTURE, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, CHILD NUTRITION CLUSTER – FEDERAL ALN 10.555, 10.559, AND 10.553 2025-006 Internal Control Over Compliance With Allowable Activities Requirements Finding Summary Criteria – 7 CFR § 210.8 requires the District to establish and maintain effective internal control over compliance with requirements applicable to federal program allowable activities, including meal count requirements applicable to child nutrition cluster federal programs. Condition – The District did not have sufficient controls in place within its child nutrition cluster to assure that it was accurately reporting meals counts for federal reimbursement, specifically pre-K students at non-public schools and summer meals served at apartment building sites. Corrective Action Plan Actions Planned – The District will review its policies and procedures relating to meal counts for its federal programs and will ensure that accurate meal counts are documented and submitted for federal reimbursement. Official Responsible – Brian Schultz, the District’s Finance Director. Planned Completion Date – December 31, 2026. Disagreement With or Explanation of Finding – The District agrees with this finding. Plan to Monitor – Brian Schultz, the District’s Finance Director, will review and update the District’s policies and procedures relating to eligible meal tracking and reimbursement submission for its child nutrition cluster federal program to ensure compliance with the Uniform Guidance in the future.

SIGNIFICANT DEFICIENCIES IN INTERNAL CONTROL OVER COMPLIANCE – U.S. DEPARTMENT OF AGRICULTURE, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, CHILD NUTRITION CLUSTER – FEDERAL ALN 10.555, 10.559, AND 10.553 2025-005 Internal Control Over Compliance With Federal Suspension and Debarment Requirements Finding Summary Criteria – 2 CFR § 180 requires the District to establish and maintain effective internal control over compliance with requirements applicable to federal program expenditures, including suspension and debarment requirements applicable to the child nutrition cluster. Condition – The District did not have sufficient controls in place within its child nutrition cluster to assure that it was not contracting for goods or services with parties that are suspended or debarred, or whose principals are suspended or debarred from participating in contracts involving the expenditures of federal program funds. Corrective Action Plan Actions Planned – The District will review its policies and procedures relating to suspension and debarment for its federal programs and will ensure that all parties with which it contracts for goods or services are eligible to participate in contracts involving the expenditures of federal program funding. Official Responsible – Brian Schultz, the District’s Finance Director. Planned Completion Date – December 31, 2026. Disagreement With or Explanation of Finding – The District agrees with this finding. Plan to Monitor – Brian Schultz, the District’s Finance Director, will ensure appropriate controls are in place to verify that any vendor with which the District contracts for federal program goods or services exceeding $25,000 is not listed as suspended or debarred on the federal Excluded Parties List System website.

The Organization should develop a compliance calendar that includes financial reporting deadlines and set automatic reminders in advance of each deadline to aid in properly planning and timing submission of reporting packages. Additionally, the Organization should engage the audit firm well before the fiscal year end, and the auditors should put this engagement on their calendar well in advance of the due date. The Organization should establish a timeline with the auditors that aligns with internal deadlines to ensure sufficient time to conduct the audit. The Organization’s Board of Directors should be more actively engaged in the auditing and reporting process to establish a greater degree of accountability and oversight. Anticipated Completion Date: 03/31/2027. Actions Taken: The Organization has begun implementing the above-mentioned recommendations. The Organization will ensure that it has a working compliance calendar to assist in meeting the reporting deadline. Additionally, the Organization has engaged the audit firm for their upcoming fiscal year-end, and the audit firm has put it on its calendar to begin the audit process well in advance. The Organization’s board of directors has agreed to oversee the auditing and reporting processes to a greater extent. With these actions, the Organization expects to comply with the Uniform Guidance for single audits deadline for the fiscal year end 06/30/2026. Mr. Moshe Weiss, Food Program director, has been designated to monitor the plan of corrective action for this finding. He can be reached at 845-425-0909. Contact Person Responsible for Corrective Action: Moshe Weiss, Food Program Director

The Organization should develop a compliance calendar that includes financial reporting deadlines and set automatic reminders in advance of each deadline to aid in properly planning and timing submission of reporting packages. Additionally, the Organization should engage the audit firm well before the fiscal year end, and the auditors should put this engagement on their calendar well in advance of the due date. The Organization should establish a timeline with the auditors that aligns with internal deadlines to ensure sufficient time to conduct the audit. The Organization’s Board of Directors should be more actively engaged in the auditing and reporting process to establish a greater degree of accountability and oversight. Anticipated Completion Date: 05/31/2027. Actions Taken: The Organization has begun implementing the above-mentioned recommendations. The Organization will ensure that it has a working compliance calendar to assist in meeting the reporting deadline. Additionally, the Organization has engaged the audit firm for their upcoming fiscal year-end, and the audit firm has put it on its calendar to begin the audit process well in advance. The Organization’s board of directors has agreed to oversee the auditing and reporting processes to a greater extent. With these actions, the Organization expects to comply with the Uniform Guidance for single audits deadline for the fiscal year end 08/31/2026. Nisson Portnoy, Food Program director, has been designated to monitor the plan of corrective action for this finding. He can be reached at 845-368-2247. Contact Person Responsible for Corrective Action: Nisson Portnoy, Food Program Director

Condition: A competitive procurement process was not performed for one vendor selected for testing. Corrective Action Planned: The District has reviewed procurement procedures related to the Child Nutrition Program and has taken corrective action to ensure compliance with federal procurement requirements under 2 CFR 200.318-200.326. All food service vendors are now procured through appropriate procurement procedures, including solicitation and documentation of vendor selection as required by federal regulations. The District will maintain procurement records including solicitations, bids or quotes received, vendor selection documentation, contracts, invoices, and payment records. The Business Office will work with the Food Service Department to ensure that all future procurements under federal programs follow required federal, state and local procurement standards. Staff responsible for procurement will be reminded of documentation and competitive bidding requirements. Procurement documentation will be periodically reviewed by the Business Office to ensure ongoing compliance. Anticipated Completion Date: Implemented March 1, 2026 Contact: Nancy J. Konisky, Business Manager

Responsible Official: Marcos A. Rivera Sánchez, Executive Director Management acknowledges the condition identified in the audit: the perpetual inventory system calculates inventory costs using the weighted average method, while the entity's established methodology for valuing USDA Foods is FIFO. Because the system does not support FIFO, inventory costs must be recalculated manually at year end, resulting in significant adjustments and indicating that perpetual inventory records maintained during the year do not reconcile to USDA-assigned costs. To address this issue, management will implement the following corrective actions consistent with the audit recommendation: - Evaluate and configure the inventory system to apply the FIFO costing method or adopt a system capable of reflecting USDA-assigned costs. - Develop and implement formal written procedures requiring periodic reconciliation between the perpetual inventory, accounting records, and USDA costs assignments. - Document and investigate any differences identified during reconciliations to ensure accurate, complete, and compliant inventory records in accordance with 7 CFR 250.19. These actions are intended to eliminate the need for significant manual adjustments at year end, strenghten inventory valuation controls, and ensure compliance with USDA requirements. Anticipated Completion Date: December 31, 2026.