Corrective Action Plans

Corrective Action Plan – Finding 2025-001 Program: Section 202 (Supportive Housing for the Elderly) Assistance Listing: 14.157 Federal award Identification number:121-EE151-NP-WAH Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Award Year: 2025 Finding Reference: 2025-001 – Reportable Finding Considered a Significant Deficiency - Special Tests and Provisions: Reserve for Replacement is underfunded by $43,149 Management’s Planned Corrective Action: Management will work with new Property Management personnel and HUD account executive to improve cash flow at the project and submit required deposits to reserve accounts. Anticipated Completion Date: 12/31/2026

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

In connection with the procedures applied to a sample of two tenants that moved in and out of the Project during the year, we noted one instance where the tenant's security deposit amount listed in the lease and collected was not deposited in a timely manner and thus the amount per the lease did not agree to the amount recorded in the accounting records. a. Comments on the Finding and Each Recommendation Management agrees with the finding and recommendation. As part of the transition from TD Bank to IDB Bank, there was a delay in establishing the new security deposit accounts. Once the accounts were finalized, the funds were transferred to the IDB security deposit accounts in December 2025. c. Action(s) Taken or Planned on the Finding Security deposit accounts were established and funded in December 2025. The Project closed its TD Bank accounts and opened new accounts with IDB Bank. Due to delays in establishing the new security deposit accounts at IDB, the funds remained at TD Bank until the accounts were finalized and were subsequently transferred to the IDB security deposit accounts in December 2025.

During the period ended December 31, 2025, the Company distributed $20,931 in excess of surplus cash available for distribution. a. Comments on the Finding and Each Recommendation Management agrees with the finding and recommendation. Adequate procedures were not in place to ensure distributions were reviewed and limited to available surplus cash in accordance with HUD requirements. b. Action(s) Taken or Planned on the Finding The project's management agrees with the auditor’s finding. As of December 31, 2025, there is $51,268 of available surplus cash. Had the questioned costs of $20,931 not been paid, then surplus cash would have been $72,199. Therefore, since current year surplus cash has been reduced, the questioned costs are deemed to be repaid.

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

Finding 2025-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public and Indian Housing Program Federal Catalog Numbers: 14.850 Non Compliance - E. Eligibility - Tenant Files Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Eligibility Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). These files are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority’s files and on discussion with management, a tenant's rent payment was calculated incorrectly. Context: There are approximately 1,804 units. Of a sample size of thirty-one (31) tenant files, tenant rent was calculated incorrectly in one (1) file. Our sample size is statistically valid. Known Questioned Costs: $940* *Represents HAP attributable to one (1) tenant file for which the Authority could not demonstrate compliance with eligibility requirements. The questioned costs do not represent amounts determined to be ineligible but rather costs associated with miscalculation for verification of income. Cause: There is a significant deficiency in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. Net income was used in error when calculating the tenant's rent instead of gross income. Effect: The Public and Indian Housing Program is in non-compliance with the eligibility type of compliance related to the maintenance of tenant files. Recommendation: We recommend that the Authority implement a process whereby Authority personnel properly trained on tenant recertification processes to ensure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority has recognized the deficiencies in the Public and Indian Housing Program and has implemented a quality control program. The Authority will continue to train staff on proper tenant recertification processes and implement additional internal control procedures, such as utilizing AI, that will ensure compliance with federal regulations. Ms. Chasity Jackson, Director of Asset Management, will be responsible to implement this corrective action by December 31, 2026.

With regard to Federal Award Finding 2025-002, Expenditure Approval Documentation –Significant Deficiency, in the audit report for Samaritan House, Inc. for the year ended December 31, 2025, we offer the following response: Reconciliation Reviews: Reconciliations for all bank accounts and organizational credit cards are now reviewed by both the Board Treasurer and the Executive Director. This review requirement has been formally reinforced within Samaritan House’s internal financial policies and communicated across the finance team. Documentation of each journal entry and reconciliation review is maintained either electronically or in physical form, with verification records retained on file. These practices ensure consistent oversight, proper segregation of duties, and clear evidence of compliance with established financial controls. Cassidy Kipp and Jewel Groves-Goss are responsible for completing this corrective action by Dec 31, 2026.

2025-001 Federal Awards Internal Control CORRECTIVE ACTION PLAN (CAP): Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Actions Planned in Response to Finding: The Commission will review policies and procedures to ensure compliance with the Uniform Guidance. Official Responsible for Ensuring CAP: Jessica Beyer, Deputy Director, is the official responsible for ensuring corrective action. Planned Completion Date for CAP: June 30, 2026 Plan to Monitor Completion of CAP: The Board of Directors will be monitoring this corrective action plan. Jessica Beyer Deputy Director

Northeast Florida Community Action Agency, Inc. agrees with the findings. Our organization will take action to correct the composition of the tripartite board by appointing the required representatives as soon as possible. The Executive Director is responsible for ensuring the agency remains in compliance. Moving forward, the Executive Director will review the board composition quarterly to ensure that all vacant positions are filled. This will help maintain the integrity of the agency’s Board of Directors at all times.

SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Finding No.: Compliance and Internal Control over Compliance Findings 2025-001 Level of Effort - Changes in Program Plans - Significant Deficiency in Internal Control over Compliance and Noncompliance Recommendation: We recommend that INPEACE implement procedures to regularly monitor the level of effort of key personnel against the requirements of each federal award, and to identify changes that require prior written approval from the awarding agency before those changes occur. We also recommend that INPEACE promptly request approval from the U.S. Department of Education for any current changes in level of effort that have not been approved. View of Responsible Officials: INPEACE concurs with the finding. Corrective Action: INPEACE will submit a written request to the U.S. Department of Education to obtain approval for the current change in the Project Director’s level of effort for the Keiki Steps program. Going forward, INPEACE will implement procedures to monitor the level of effort of key personnel against the requirements outlined in each federal award. At the beginning of each grant period, the Finance and Grants/Development departments will review the Grant Award Notification and applicable award terms to identify key personnel and required levels of effort. Any proposed changes to the duties, assignment, or level of effort of key personnel will be reviewed by the appropriate Program Director, CFO, and CPO and/or CEO prior to the change taking effect. The review will determine whether prior written approval from the federal awarding agency is required under the applicable federal regulations and award terms. When required, INPEACE will obtain and document the approval before implementing the change. INPEACE will also incorporate a review of key personnel level of effort into its periodic grant monitoring procedures. Time and effort reports and personnel allocations will be reviewed to identify significant variances from the level of effort required by the award. Any identified variance requiring prior approval will be promptly addressed with the applicable federal awarding agency. These procedures will help ensure that INPEACE remains in compliance with federal award requirements and that changes in key personnel responsibilities or level of effort are properly reviewed, approved, and documented. Contact Person Responsible for Action: Sanoe Marfil, CEO and Marissa Pico, CFO Anticipated Completion Date: October 31, 2026

Finding No. 2025-002 — Cash Management — Significant Deficiency Name of Federal Agency: U.S. Department of Health and Human Services Federal Program Name and Assistance Listing Number: Low-Income Home Energy Assistance 93.568 Federal Award Identification Number and Years: 23DSS4301 EW 9/25 and 9/26 Name of Passthrough Entity: Connecticut Department of Social Services Planned Corrective Action: Management will continue to identify opportunities to streamline invoice processing along with conducting periodic reviews of processed invoices to ensure payment was made within the 10 day payment period. Management will also maximize recruitment efforts to fill vacant staffing positions. Name of Contact Person: Tiffany Bell, Director of Energy Services, anticipated completion date — December 31, 2026.

Finding 2025-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Assistance Listing Numbers: 14.871 & 14.879 Noncompliance - E. Eligibility - Tenant Files Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Eligibility Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). These files are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were documents that were unavailable for examination at the time of audit. Context: There are approximately 1,225 units Housing Voucher Cluster units. Of a sample size of twenty-five (25) tenant files, the following information was unavailable for examination at the time of audit: • Original application was missing in one (1) file • Citizenship declaration was missing in one (1) file • HUD-9887 form was missing in one (1) file • Lead based paint forms were missing or not signed by the lessee in eight (8) files • Verification of income and assets was missing in one (1) file Our sample size is statistically valid. Known Questioned Costs: $13,908* *Represents HAP attributable to one (1) tenant file for which the Authority could not demonstrate compliance with eligibility requirements. The questioned costs do not represent amounts determined to be ineligible but rather costs associated with HAP that the Authority could not substantiate since there were no supporting documents on file. Cause: There is a significant deficiency in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that reasonably assures the program is in compliance. Effect: The Housing Voucher Cluster is in non-compliance with the eligibility type of compliance related to the maintenance of tenant files. Recommendation: We recommend that the Authority implement a process whereby Authority personnel are properly trained on tenant recertification processes to ensure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Housing Voucher Cluster to ensure that established internal control policies are being followed on a timely basis. Melena Nelson, Director of Finance, will be responsible to implement this corrective action by December 31, 2026.

Special Programs for the Aging, Title III, Part C, Nutrition Services - Assistance Listing No. 93.045 Nutrition Services Incentive Program – Assistance Listing No. 93.053 Recommendation: Management should strengthen controls over Community Dining participant tracking to ensure participant records are reviewed and supported by appropriate documentation. Management should also implement monitoring procedures to verify that participant counts and listings are complete, accurate, and properly supported. Explanation of disagreement with audit finding: There is no disagreement with the finding. Action taken in response to finding: Sound Generations is updating procedures to strengthen controls over recording participant information, including participant profiles and meal services. Administrative staff will conduct regular site visits to train and monitor site staff and volunteers on these procedures. Name(s) of the contact person(s) responsible for corrective action: Kristina Morgan, Controller, at 206-445-5671. Planned completion date for corrective action plan: June 2027.

Special Programs for the Aging, Title III, Part C, Nutrition Services Assistance Listing No. 93.045 Nutrition Services Incentive Program – Assistance Listing No. 93.053 Recommendation: Management at Sound Generations should review its existing control structure and ensure that there are adequate processes and controls to ensure program income is recorded correctly for Federal programs, based on the underlying supporting documentation. Management should also continue to reinforce review procedures over program income reporting to help ensure recording errors are detected and corrected on a timely basis. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Sound Generations is reviewing and revising our control structure using our new software and new staff with the appropriate experience. Name(s) of the contact person(s) responsible for corrective action: Kristina Morgan, Controller, at 206-445-5671. Planned completion date for corrective action plan: major initiative to be completed in 2027.

2025-003 – Reporting Corrective Action Plan: Management is in communication with the audit firm working on completing the 2024 audit. The 2025 audit has been submitted timely and it is anticipated this will not be an issue in future years. Person(s) Responsible: Allan Scroggins, CFO Timing for Implementation: Fiscal year 2026

CORRECTIVE ACTION PLAN September 17, 2026 Boys and Girls Club of Hawaii (BGCH) respectfully submits the following corrective action plan for the year ended December 31, 2025. Name and address of independent public accounting firm: N&K CPAs, 999 Bishop Street, Suite 2200, Honolulu, HI 96813 Audit Period: The calendar year ended December 31, 2025. Addressee: State of Hawaii, Department of Human Services Benefit, Employment and Support Services Division 1010 Richards Street, Suite 512 Honolulu, HI 96813 Primary Contact Person: Paddy Kauhane, President & CEO Contact Person Responsible: Florrie Charnaw, CFO Finding: The finding from the December 31, 2025 Schedule of Findings and Questioned Costs - #2025-001: Noncompliance with Grant Award Terms – Significant Deficiency Federal agency: Department of Health and Human Services Program: ALN No. 93.558 Temporary Assistance for Needy Families Pass-through entity: State Department of Human Services Award number and award year: DHS-24-TANF-0116, June 3, 2024 to August 2, 2025. Criteria: The DHS-24-TANF-0116 award specifically prohibits BGCH from charging youths or their families for programs or services provided under the award without prior approval from the State. Condition: While BGCH fully complied with providing the required services at the locations included in the Contract, BGCH did charge Summer Intersession fees to some youth at all nine BGCH Clubhouses without seeking prior approval of the STATE. Completion Date: September 30, 2026 Corrective Action Plan BGCH has made full refunds of the summer 2025 fees, provided all supporting documentation to DHS for them, and provided the Grant Policy and Grant Management Procedures by the required March 31, 2026 deadline. We remain compliant with this contract and will continue to fully comply with the DHS CAP executed in March 2026.

Management acknowledges the delays identified in the submission of certain monthly progress reports corresponding to the 2025 reporting period. However, management respectfully notes that the dates reflected in PRDOH's reporting records should be considered in the context of PRDOH's established sequential reporting and approval process. Under the Puerto Rico Department of Housing's CDBG-DR/MIT Grant Compliance Portal (GCP) procedures, a subrecipient cannot submit a monthly report while a preceding report remains open and pending approval. Specifically, the PRDOH CDBG-DR/MIT Grant Compliance Portal (GCP) Manual, Version 5, dated April 4, 2024, page 35, states: “You cannot submit a report while there is an open past Report” and further provides that, “Once the open report is approved, you can submit the next monthly report.” Accordingly, delays in PRDOH's review, return, resubmission, and approval of one monthly report necessarily affect CRH's ability to submit the following month's report, even when CRH is otherwise prepared to proceed with the subsequent submission. Management therefore reviewed the complete submission and approval history for all twelvemonthly reports corresponding to 2025 in order to distinguish between reports that appear late based solely on the dates reflected in PRDOH's records and reports that were submitted late due to circumstances attributable to CRH. Out of the 12 months of 2025, five reports were submitted late. Of the five late submissions, three of which were due to the PRDOH’s delayed approval of the previous month’s report. Reporting Period Original CRH Submission PRDOH Approval Status January 3/26/25 4/3/25 Submitted late, in order to incorporate new PRDOH data and inventory requirements. February 4/23/25 5/26/25 Submitted late, in order to incorporate new PRDOH data and inventory requirements. March 5/28/25 5/28/25 Submitted late due to PRDOH approval date of previous report April 5/28/25 5/28/25 Submitted late due to PRDOH approval date of previous report. May 6/2/25 6/5/25 Submitted within term. June 7/1/25 7/9/25 Submitted within term. July 8/1/25 8/6/25 Submitted within term. August 9/2/25___ 9/19/25_ Submitted within term. September 10/2/25 10/17/25 Submitted within term. October 11/5/25 12/10/25 Submitted within term. November 12/15/25 12/23/25 Submitted late due to PRDOH approval date of previous report. December 1/5/26 2/4/26 Submitted within term. After considering the original submission dates, PRDOH approval dates, subsequent resubmissions, and the sequential reporting requirement established by PRDOH, only two reports were actually submitted late due to circumstances attributable to CRH. With respect to those reports that were actually submitted late by CRH, the delays occurred principally during a period in which PRDOH was establishing new requirements concerning the information, supporting documentation, classifications, and formatting required for inventory and data, which required overhauls of the CRH’s internal methodologies. In several instances, these requirements were communicated through comments and instructions associated with PRDOH's review of preceding reports, and in others, from e-mail requests establishing new inventory criteria. CRH has since incorporated PRDOH's data and inventory format requirements into its regular procedures, completed the necessary personnel transition and training, and strengthened its internal monitoring of monthly reporting deadlines. As of 2026, CRH's monthly reports have been submitted without a sinlge late submission. Management will continue documenting both CRH submission dates and PRDOH approval dates so that delays resulting from PRDOH's sequential review and approval process can be appropriately distinguished from delays attributable to CRH.

Views of Responsible Officials: During 2025, the Foundation experienced an extraordinary period of uncertainty surrounding the continued availability and accessibility of Federal funding. In response to concerns regarding access to previously awarded Federal funds, the Foundation accelerated certain cash draws associated with approved Federal awards and established work plans. Shortly thereafter, access to certain award accounts within the Federal payment system changed, with access subsequently restored. As circumstances stabilized, the Foundation returned a substantial portion of the advance funding in March 2025. As of December 31, 2025, approximately $7 million remained recorded as refundable Federal advances associated with existing Federal awards. Management anticipated that these funds would be applied to eligible program expenditures and existing award obligations as activities under the approved work plans progressed. The Foundation maintains cash within pooled operating accounts and did not maintain Federal advances in separately segregated bank accounts. While Federal award activity and expenditures were tracked within the Foundation's accounting system, the Foundation's existing cashmanagement and liquidity-monitoring processes did not provide sufficient visibility to demonstrate that cash and investments equal to outstanding refundable Federal advance obligations remained available as of December 31, 2025. The Foundation also maintained access to a $1 million line of credit that was available to provide additional liquidity for short-term organizational working-capital requirements. The line of credit had not been drawn as of December 31, 2025, and therefore was not included in the cash and investments used to measure available liquidity at year-end. Nevertheless, the facility represented an available non-Federal source of liquidity that could have been utilized to address short-term organizational cash-flow requirements. Importantly, as reflected in the auditors' findings, no questioned costs were identified because expenditures unrelated to the applicable Federal awards were not charged to those Federal programs. The Foundation recognizes the need to strengthen its cash-management controls and liquidity-monitoring processes to ensure that Federal cash draws are aligned with immediate program cash requirements and that sufficient liquidity is maintained to satisfy outstanding Federal advance obligations. To address the finding, management has implemented or will implement the following corrective actions: 1. Federal Cash Draw Review and Approval – CFO/Finance Finance will maintain a formal review and approval process for federal cash drawdowns. Draws will be supported by eligible expenditures and actual and immediate cash requirements consistent with applicable federal award requirements. Federal cash draws outside the Foundation's normal reimbursement or cash-management practices will require documented review and approval by the CFO. 2. Extraordinary Federal Cash Draw Protocol – President & CEO/CFO If extraordinary circumstances arise that could affect the Foundation's access to federal awards or federal payment systems, any decision to materially accelerate a federal cash draw will be documented and subject to enhanced executive review.The documentation will include the circumstances supporting the proposed action, affected federal awards, amount of the proposed draw, anticipated eligible expenditures, expected timing of those expenditures, applicable federal cash-management requirements, and identified compliance and liquidity risks. Material extraordinary draw decisions will require approval by the President & CEO and CFO and, when appropriate, consultation with legal counsel, the federal awarding agency, and/or the appropriate Board leadership. 3. Program Certification of Anticipated Eligible Expenditures – Program Leadership When a federal cash-management decision relies on anticipated program activity, the responsible Program Executive will provide Finance with documented projections of the eligible expenditures expected to be incurred under the applicable awards. The documentation will identify the anticipated expenditures, estimated amounts, expected timing, and applicable federal awards. Program Leadership will be responsible for the accuracy and completeness of the programmatic projections provided to Finance. Finance will remain responsible for evaluating the information against applicable federal cash-management requirements. 4. Federal Advance Retention Review – CFO/Finance When a material federal advance remains outstanding, Finance will perform and document an assessment of whether continued retention of the advance is appropriate. The assessment will consider the amount of the outstanding advance, cumulative eligible expenditures, anticipated eligible expenditures, expected timing of those expenditures, applicable award requirements, and the amount, if any, that should be returned. Material advance balances will be periodically reassessed until the funds have been applied to eligible federal program expenditures or returned, as appropriate. 5. Federal Advance Reconciliation – CFO/Finance Finance will maintain an award-level reconciliation of federal cash draws, cumulative eligible expenditures, and outstanding refundable advances. The reconciliation will provide management with visibility into the amount of federal cash advanced in excess of cumulative eligible expenditures and facilitate timely identification of amounts that may require repayment. The remaining refundable advances associated with the December 31, 2025, balance will continue to be monitored through final disposition. 6. Enhanced Cash-Flow and Liquidity Forecasting – CFO/Finance Management will maintain a rolling 90 day cash-flow forecast incorporating anticipated receipts, operating expenditures, federal award activity, refundable advances, unrestricted resources, and other significant obligations. The forecast will be regularly updated and used to identify projected liquidity shortfalls and required management actions. Status: Started September 20267. Federal Advance Liquidity Monitoring – CFO/Finance As part of the Foundation's liquidity reporting, Finance will specifically compare outstanding federal refundable advances with available financial resources. If available resources approach or fall below established thresholds necessary to satisfy federal advances and other restricted or committed obligations, the matter will be immediately escalated to the President & CEO and appropriate Board leadership. This control is intended to prevent a situation in which a significant federal advance remains outstanding without management having timely visibility into the Foundation's ability to satisfy the associated obligation. Status: Started July 2026 8. Executive Accountability Responsibility for remediation will be shared across executive leadership with clearly defined accountability: Finance/CFO will be accountable for federal cash-management compliance, federal draw review, refundable advance reconciliations, cash-flow forecasting, liquidity monitoring, and escalation of identified risks. Program Leadership will be accountable for providing Finance with timely and supportable projections of anticipated eligible program expenditures when those projections are necessary to support federal cash-management decisions. President & CEO will be accountable for ensuring that organizational expenditures and operating decisions are appropriately aligned with available and reasonably forecasted financial resources and for directing organizational corrective action when established liquidity or revenue thresholds are reached. Management believes these measures strengthen the control environment surrounding an extraordinary and unusual event while establishing sustainable controls for federal cash management going forward. Management is committed to ensuring that future federal drawdowns are appropriately aligned with the Foundation's actual and immediate cash requirements and that significant federal advances are subject to documented, ongoing monitoring through their final disposition.

MAG US is implementing additional procedures to ensure the audit and the filing of the data collection form are completed in a timely manner. MAG US is committed to maintaining strong internal controls and ensuring the accuract of our financial reporting.

Money Management International, Inc. respectfully submits the following corrective action plan for the year ended December 31, 2025. Audit period: January 1, 2025 – December 31, 2025 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS 2025-001 U.S. Department of Health and Human Services Social Services Block Grant – Assistance Listing No. 93.667 Recommendation: Management should establish internal control procedures to ensure formal documentation of the annual verification of whether subrecipients are subject to audit requirements and, if applicable, that required audits have been completed. Documentation should be retained to support the procedures performed, including information obtained from subrecipients, management's assessment of audit requirements, and any follow-up actions taken. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will implement a formal annual subrecipient monitoring process that includes documenting the assessment of each subrecipient's audit requirements, verifying completion of required audits when applicable, and retaining supporting documentation. A standardized tracking log and review checklist will be established to document the assessment performed, the determination of audit requirements, receipt and review of audit reports, and any necessary follow-up actions for findings or noncompliance. Supporting documentation will be maintained in a centralized location and reviewed annually by management to ensure compliance with federal grant requirements and provide an adequate audit trail. Name of the contact person responsible for corrective action: Andrea Clements Planned completion date for corrective action plan: Oct 31, 2026 If the U.S. Department of Health and Human Services has questions regarding this plan, please call Michelle Jones at 404-653-8849.

2025-001 Sliding Fee Discount Recommendation: VVHC should implement a second level independent review of the demographic data and income verification information entered in the patient billing system in order to ensure the sliding fee classification is correct and corresponding adjustment is appropriate. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: VVHC will perform routine sampling of demographic data and income verification entered into the billing systems to ensure sliding fee classification is correct, and the proper adjustment was given. Name(s) of the contact person(s) responsible for corrective action: Holly Sliva, CFO Planned completion date for corrective action plan: September 30, 2026

We will implement a process to maintain documentation of review for all CalOES grants in the form of E-mail confirmation or screenshot signed by the reviewer.

Finding 2025-005: Significant Deficiency - Control and Compliance Over Reporting Condition The City does not have proper segregation of duties over the PR29 reporting as the same individual prepares and submits the reports. Of the two quarterly reports selected for testing, neither report had documentation of review and approval and neither report had an underlying reconciliation to the general ledger detail for the respective quarter. Our sample was not statistically valid. Corrective Action Plan Corrective Action Planned: When PR29 is entered into IDIS system, another person will submit report. Name(s) of Contact Person(s) Responsible for Corrective Action: Nick Rhinehart, Renee Hoff Anticipated Completion Date: 10/01/2026

Finding 2025-004: Significant Deficiency - Control and Compliance Over Reporting Condition The City did not submit the required FFATA report for the first-tier subrecipient subject to testing during the required timeframe. One subrecipient agreement in the year under audit met the requirements for FFATA reporting. Our sample was not statistically valid. Corrective Action Plan Corrective Action Planned: Management will complete FFATA reporting. Name(s) of Contact Person(s) Responsible for Corrective Action: Krista Anderson Anticipated Completion Date: 09/29/2026

Medical Assistance – Assistance Listing No. 93.778 Recommendation: The County should ensure it has controls in place to properly verify assets for cases when required. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will ensure the County is properly verifying assets for cases when additional verification is required. Name(s) of the contact person(s) responsible for corrective action: Heather Olson Auditor/Treasurer, Amie Gendron Administrative Services Supervisor Planned completion date for corrective action plan: December 31, 2026