Corrective Action Plans

Finding 2025-003 Recommendation: We recommend original records relating to the requirements for receipted foods be retained for the required period. Corrective Action: Documentation was previously being filed in hard copy. Efforts have been made to now have all documents scanned into the Operations Receipts Teams fo lder at receipt and are confirmed in Teams by designated members of the Operations management team. Person Responsible for Corrective Action: Norman Stafford, VP of Operations Anticipated Completion Date for Corrective Action: 8/14/26

Finding 2025-002 Recommendation: We recommend controls be strengthened to ensure all donations are supported with verification of count, weight, product identification, and other inspection of the product as evidenced through signature of the person(s) receiving inventory items. This could be made through a checklist attached to the bill of lading and used with entering the items into the inventory system that includes verification was properly made and items properly set up in inventory. Corrective Action: A majority ofTEFAP orders arrive with a BOL that will have the USDA secondary 5000 PO number as well as a 4000 Customer sales number and many times a 2000 Solicitation number. These are requirements t he USDA has with the vendors supplying the items. We report both the 5000 and 4000 numbers to GA OHS/SC Dept of Ag upon receipt of the goods. If either or both numbers are missing from the BOL, we note that in t he receipt report sent to these agencies. These numbers, although unique to USDA product, are not the only designation we use for TEFAP loads. We can access the TEFAP Requisition Status Report that indicates items that we have ordered and the status such as approved and delivery period. By contract the vendors/delivery brokers are required to give us a 48-hour notice prior to delivery. Moving forward, we will attach the TEFAP report sent to the respective state agencies in the event that either the 4000 or 5000 number is not on the BOL to the required retention paperwork for audit purposes. Person Responsible for Corrective Action: Norman Stafford, VP of Operations Anticipated Completion Date for Corrective Action: 8/14/26

Recommendation We recommend the District strengthen internal controls over the Child Nutrition Program reporting process by ensuring that all required documentation, including federal edit checks, Site Claim Reports by school, and evidence of supervisory review and approval of Meal Count Listings, is prepared, reviewed, approved, and retained prior to submission of reimbursement claims. Management should also implement periodic monitoring procedures to ensure consistent compliance across all school sites. Management Response Corrective Action Beginning with the 2025–2026 school year, we have implemented a requirement that all kitchen managers complete a daily meal count form provided by the New Mexico Public Education Department (NMPED) in collaboration with the Student Success and Wellness Bureau (SSWB). This documentation ensures accountability and verifies that reimbursable meals are being served for both breakfast and lunch. Additionally, we are currently exploring the implementation of a software program to further strengthen meal count accountability. The Food Service Supervisor will be working closely with the District finance department to identify funding opportunities for the 2026–2027 school year. Due Date of Completion: June 30, 2026 Responsible Party(ies): Director of Federal Programs

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.

Views of Responsible Officials: The District will implement formal internal control procedures requiring review and documented approval of all SNP Claim for Reimbursement Summary reports prior to submission in PEARS. The following procedures will be implemented: 1. The Director of Food Services will prepare the monthly SNP Claim for Reimbursement Summary report and compile all supporting meal count documentation. 2. Prior to submission, the Administrative Assistant to the Director of Food Services or another designated individual independent of the preparation process will: a. Review the claim for mathematical accuracy; b. Verify meal counts against supporting documentation; c. Confirm claims are submitted within required timelines; and 3. Evidence of the review and approval will be documented through: a. Signature or electronic approval on the reimbursement summary report; and b. Retention of supporting documentation in accordance with federal and state record retention requirements. 4. A written standard operating procedure (SOP) outlining these review and approval responsibilities will be developed and communicated to applicable personnel. The Business Manager will periodically monitor compliance with the procedure to ensure controls remain effective.

Significant Deficiency in Internal Control over Compliance and Instance of Noncompliance: Meal Count Reporting and Reconciliation U.S Department of Agriculture Child Nutrition Cluster Passed through State of lowa Department of Education Federal Assistance Listing Number: 10.555, 10.559, 10.553 Federal Award Year: 2025Criteria: Districts are required are required to submit accurate claims for reimbursement and maintain records supporting the number of meals claimed for reimbursement for the National School Lunch Program. Condition: During audit procedures over the School Nutrition Cluster, we identified multiple instances in the National School Lunch Program in which the number of claims submitted was incorrect. Cause: The District did not have an effective review and reconciliation control in place to compare meal-count support to the claim summary reports before reimbursement claims were submitted. In addition, meal-count and eligibility reports were not consistently generated and retained at the time the claims were prepared. As a result, subsequent changes in student eligibility status may have affected the reports available to support the meal counts claimed during the applicable reporting periods. Effect: Meal counts reported for reimbursement were not fully supported by contemporaneous records, resulting in noncompliance with reporting and recordkeeping requirements. Without an effective review and reconciliation control, errors in meal counts or claim summary reports may not be identified before reimbursement claims are submitted, increasing the risk that federal reimbursement claims could be inaccurate. Questioned Costs: Known questioned costs identified were below the reporting threshold and are not reported in this finding. Recommendation: We recommend that the District implement a documented monthly review and reconciliation process before reimbursement claims are submitted. The reconciliation should compare meal-count and eligibility support to the claim summary reports, identify and explain any differences, retain support for adjustments, and include evidence of review and approval by an individual independent of claim preparation. We also recommend that management generate and retain meal-count and eligibility report for each applicable reporting period at the time claims are prepared to ensure support reflects student eligibility status as of the applicable claim period. Management Response: Management acknowledges the finding and the District will generate and retain monthly meal-count and eligibility reports at the time reimbursement claims are prepared. The District will also implement a documented review and reconciliation process for National School Lunch Program reimbursement claims.

Reporting California Department of Education Partially Concur. The Department agrees that timely submission of FFATA reports is an important requisite. However, the circumstances that triggered the late submission were created by the control agency shifting to a new system without ensuring it met everyone’s needs, not by a lack of Department staffing or resources. Nevertheless, to strengthen existing procedures, the Department will review processes and determine if contingency procedures are appropriate and feasible. Management will also continue to monitor federal system changes, document implementation challenges, and maintain communication with federal agencies to ensure awareness of external system limitations that could affect reporting timelines. The Department will continue to work with the U.S. General Services Administration on automated reporting solutions to mitigate any future late submittals and to ensure timely submission of all FFATA reports. Estimated Implementation Date: September 30, 2026 Contact: - Yiping Hu, Accounting Administrator, Fiscal and Administrative Services Division

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.

Eligibility for the Child Nutrition Cluster (Federal Award) Implement system edits or procedural checks to prevent duplicate eligibility entries for the same student, including unique student identifiers and warning prompts. Periodically run and review reports identifying potential duplicate records (same student ID, name, date of birth) and investigate and clear duplicates. Provide training to Nutrition Services staff on maintaining an unduplicated eligibility file and correcting errors. Responsible Party - Child Nutrition Analyst Target Completion - December 31, 2026

FS 2025-001 Internal Controls at the Central Office Internal Control Impact: Significant Deficiency Repeat of Prior Year Finding: FS 2024-001, FS 2023-001 Description: The School District's accounting procedures at the Central Office are not sufficient to ensure prevention or timely detection of errors in key financial processes, specifically those related to journal entries, cash management, capital asset tracking, and payroll processing. Corrective Action Plans: Journal Entries - All journal entries will be printed out, which show the preparer, reviewer and filed in numerical order beginning with FY26. Cash and Cash Equivalents - All bank balances are reconciled to the financial statements and are signed and dated by both preparer and reviewer. Monthly School Bookkeeper meetings are being held to ensure that all school level accounts are reconciled as well. Capital Assets - A complete physical inventory including bus titles will be completed in August of 2026. Employee Compensation - SHBP invoices starting with January 2026 have been reconciled to payroll and benefit records prior to payment and any corrections needed have been submitted to SHBP. Estimated Completion Date: January 1, 2026 Contact Person: Chris Johnson, Director of Financial Services Telephone: 478-994-2031 Email: chrisJohnson@mcschools.org

Finding 2025-003 a. Name of Contact Person Responsible for Corrective Action: Jeff Jones, Business Manager b. Corrective Action Planned: Additional Training has been provided during professional development sessions to keep in the forefront the importance of preventing conflicts of interest as well as possible nepotism as defined by Miss. Code Ann. § 25-1-53 and Miss. Code Ann. § 25-4-105(1). New hires are required to disclose possible conflicts of interest during the application process. Department heads making recommendations for hire are required to disclose if they are related to the person they are recommending for hire. c. Anticipated Completion Date: Training was provided in February, 2026, after disclosures were added to the employment applications in the human resource software asking the applicant to disclose if they are aware if they are related to anyone currently working in the district. As soon as the violation was identified, the Office of Child Nutrition at the Mississippi Department of Education was notified

Condition: the District did not provide an updated capital asset report including additions, deletions, and depreciation expense which is to be reported as a direct expense. Recommendation: The District's capital asset accounting and reporting system be updated to reflect additions, deletions and depreciation expense on an annual basis Method of Implementaton: Capital asset records will be reviewed annually and updated to reflect all additions, deletions, and depreciation. The inventory will be reconciled to the general ledger before year-end financial reporting.

Views of Responsible Officials: The District will implement formal internal control procedures requiring review and documented approval of all SNP Claim for Reimbursement Summary reports prior to submission in PEARS. The following procedures will be implemented: 1. The Director of Food Services will prepare the monthly SNP Claim for Reimbursement Summary report and compile all supporting meal count documentation. 2. Prior to submission, the Administrative Assistant to the Director of Food Services or another designated individual independent of the preparation process will: a. Review the claim for mathematical accuracy; b. Verify meal counts against supporting documentation; c. Confirm claims are submitted within required timelines; and 3. Evidence of the review and approval will be documented through: a. Signature or electronic approval on the reimbursement summary report; and b. Retention of supporting documentation in accordance with federal and state record retention requirements. 4. A written standard operating procedure (SOP) outlining these review and approval responsibilities will be developed and communicated to applicable personnel. The Business Manager will periodically monitor compliance with the procedure to ensure controls remain effective.

Current policy and procedure in place will be followed. The Daily meal count sheets will be reconciled to the dummary spreadsheet and the reimburement claims, including a second review prior to submitting the claim for reinburement.

Current policy and precedure in place will be followed. The Executive Director of Nutrition Services and the Food Compliance Officer will review Summer Food Service Program sited and serving windows prior to the start of the program as well as reinbursements prior to the completion of the SFSP program period each year.

2025-006: STUDENT MEAL APPLICATIONS Program: Child Nutrition Cluster Federal Assistance Listing Number: 10.553, 10.555, 10.559 Federal Agency: U.S. Department of Agriculture Pass-Through Agency: Arizona Department of Education Grantor Number: ADE ED09-0001 Questioned Costs: $-0- Type of Finding: Noncompliance (Other Matter), significant deficiency in internal control Compliance Requirement: E. Eligibility Condition: During our testing of eligibility determinations under the Child Nutrition Cluster, we selected 40 student meal applications for review. Of the 40 applications tested, two applications were incorrectly classified based on the information provided on the applications. Specifically, one application was approved as free when it should have been approved as reduced, and one application was approved as reduced when it should have been approved as paid based on applicable eligibility guidelines. Action planned in response to finding: The District will ensure nutrition applications are reviewed to determine they meet the appropriate classification criteria. In addition, applications will be reviewed and approved by someone other than the initial individual that is recording the classification type. Planned completion date for corrective action plan: For the period ending June 30, 2026. Name of the contact person responsible for corrective action: Edward Dickie, Business Manager.

2025-005: REPORTING Program: Child Nutrition Cluster Federal Assistance Listing Number: 10.553, 10.555, 10.559 Federal Agency: U.S. Department of Agriculture Pass-Through Agency: Arizona Department of Education Grantor Number: ADE ED09-0001 Questioned Costs: $-0- Type of Finding: Noncompliance (Other Matter), significant deficiency in internal control Compliance Requirement: L. Reporting Condition/Context: During our review of meals claims submitted for reimbursement, we noted variances between the District’s meal counts and what was submitted to the Arizona Department of Education. For four months tested, meals claims were net under-reported by 10,403 lunch and breakfast meals, which calculated to $3,616.29. Additionally, for three of 4 months tested, the District did not maintain any documentation to support that the claims were reviewed by a second person. Action planned in response to finding: The District will ensure a second employee verifies and approves all NSLP Claim forms to ensure the claims submitted are accurate and complete prior to submission. Planned completion date for corrective action plan: For the period ending June 30, 2026. Name of the contact person responsible for corrective action: Jim Serbin, CFO.

A 100% review of applications was completed on October 10, 2025. The Food Service Supervisor will run an original direct certification before school starts and import that into Linq system. A 100% verification is completed in the fall. Each month a new direct certification is ran to catch any changes.

FA 2025·001 Improve Controls over Procurement and Suspension and Debarment Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: Assistance Listing Number and Titte: Federal Award Number: Questioned Costs: Description: Procurement Suspension and Debarment Significant Deficiency Nonmaterial Noncompliance U.S Department of Agriculture Georgia Department of Education 10.553 - School Breakfast Program 10.555 - National School Lunch Program 10.582 - Fresh Fruit and Vegetable Program 255GA324N1199 (Year: 2025), 255GA324L1603 (Year: 2025) $6,267 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: To address this deficiency and prevent recurrence, the District will implement the following corrective actions: 1. Immediate Reinforcement of Quote Requirements Effective immediately, all School Nutrition and applicable district staff will be required to obtain and document price or rate quotations from a minimum of two qualified sources for all. 2. Pre-Approval and Verification Controls A pre-payment review process will be enforced requiring verification that: o Required quotes are documented o Procurement method aligns with federal thresholds o Vendor selection is properly justified o Payments will not be approved without complete documentation. 3. Staff Training and Accountability Mandatory training will be conducted for all School Nutrition Managers and staff involved in procurement to reinforce: o Federal procurement requirements o Documentation expectations o Internal control procedures Estimated Completion Date: July 31, 2026 Contact Person: Matoshia Grant, School Nutrition Director Telephone: 478-986-1390 Email: Matoshia.grant@jones.k12.ga.us Signature:Tonya Merritt Title: Cheir Financial Officer

VIEWS OF RESPONSIBLE OFFICIALS The Puerto Rico Department of Education (PRDE) acknowledges the audit finding presented by the auditors regarding the timeliness of FFATA reporting to the FSRS portal under the Child Nutrition Cluster (ALN 10.553, 10.555, and 10.559). As noted by the auditors, PRDE staff have continued implementing corrective measures in response to this requirement since it was first identified as Finding 2024-011. The delays identified during the current fiscal year were related primarily to the reporting of contract amendments, and the PRDE recognizes the need to fully resolve this repeat condition. The Child Nutrition program has already developed and begun implementing its corrective action plan, which includes reinforced monitoring procedures and designated tracking responsibilities for all subaward and contract amendment reporting obligations. With these measures in place, the PRDE expects to submit all required FFATA reports for subaward obligations and contract amendments within the timeframe established under 2 CFR Part 170 going forward. IMPLEMENTATION DATE Implemented on Fiscal Year 2025-2026 RESPONSIBLE PERSON Odalis Menard AESAN Director Lourdes García Santiago AESAN Sub-Director

VIEWS OF RESPONSIBLE OFFICIALS The Puerto Rico Department of Education (PRDE) acknowledges the audit findings presented by the auditors regarding the Activities Allowed or Unallowed// Allowable Costs/Cost Principles (ALN 10.553, 10.555, 10.559, 10.582, 84.010, 84.027, 84.425D, 84.425U. The PRDE recognizes that the recoup procedures established in the "Manual de Procedimiento de Nómina" are in place; however, the Department acknowledges that the detail of Accounts Receivable shows $3,756,580 corresponding to invoices generated during the audit year. The PRDE is working with the existing manuals, along with the new changes being implemented, to strengthen the recoup process for these overpayments. As such, the PRDE has implemented several procedures which have helped in this collection process. The PRDE is committed to strengthening its documentation practices and internal oversight mechanisms to ensure full compliance with 2 CFR § 200.403(g) and other applicable federal requirements. The PRDE further acknowledges that this is a repeat finding (prior year Finding 2024-005) and accepts the auditors’ recommendation to establish and implement formal procedures to obtain and review subrecipient audit reports in a timely manner, follow up on relevant audit findings, and maintain documentation of all monitoring activities performed IMPLEMENTATION DATE Fiscal Year 2025-2026 RESPONSIBLE PERSON Giovanni Siarez Deputy Director of Payroll Wilfredo Falcón Negrón Human Resources Area Director Office Time Attendance & Leave Evelyn E. Rodríguez Cardé Finance Director

CFDA 10.558 — Child and Adult Care Food Program Finding Type: Noncompliance / Significant Deficiency Corrective Action Plan The YMCA acknowledges the finding related to incorrect participant meal coding and reimbursement classifications. Management has implemented the following corrective actions: 2 4 Provide refresher training to all staff responsible for determining and entering participant eligibility classifications. Develop written procedures outlining eligibility determination requirements and reimbursement coding standards. Conduct periodic internal audits of participant eligibility classifications to identify and correct errors timely. Maintain documentation of training attendance and ongoing monitoring activities. Responsible Party Sonja Williams and Site Coordinators Expected Completion Date September 30, 2026

PLANNED CORRECTIVE ACTION The Division will communicate to all units conducting USDA Foods inventory counts the requirement that inventory reports must include documented evidence of review prior to submission. The Division's Social Services department will incorporate verification of documented inventory review into its quarterly internal oversight process to ensure compliance with this requirement on an ongoing basis. ANTICIPATED COMPLETION DATE 10/1/26 RESPONSIBLE CONTACT PERSON Julie Luft, NW Social Services Director

The District will implement proper control over program expenditures. Expenditures for other programs will be paid directly from those program funds, if possible.

The Division is in the process of designing and implementing a precise control to ensure that the inventory reports are reviewed prior to being submitted to the grantor and that the backup documentation is maintained. Anticipated Completion Date: 9/30/2026 Responsible Contact Person: Michael Zielinski, Major, Divisional Commander.