Corrective Action Plans

Finding 1186606 (2025-001)

Material Weakness 2025

WI

Subrecipient Monitoring Allowable Costs / Cost Principles

Finding #2025-001: #84.184X – Wisconsin Well Be’s School-Based Mental Health Consortium Federal Grantor Agency: U.S. Department of Education Compliance Requirement: Subrecipient Monitoring Condition: During our audit procedures, it was determined that the District did not review supporting documenta...

Finding #2025-001: #84.184X – Wisconsin Well Be’s School-Based Mental Health Consortium Federal Grantor Agency: U.S. Department of Education Compliance Requirement: Subrecipient Monitoring Condition: During our audit procedures, it was determined that the District did not review supporting documentation such as invoices or pay records from subrecipient schools claiming funds. Although there is a Google shared document that summarizes expenditures claimed, subrecipient schools did not submit invoices to the grant manager for review and approval. Additionally, there was no formal written agreement between the District and the subrecipient to document the terms and conditions of the subrecipient awards. Effect: The District’s system of monitoring is not sufficient, formal, or uniform which could result in unallowable expenditures and misunderstandings between the District and the subrecipients. Cause: The District does not have adequate review and approval processes and formal written agreements for the subrecipients. Criteria: It is necessary under U.S. Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (commonly called "Uniform Guidance") and under most federal grant agreements that any federal funds passed through to a subrecipient be appropriately monitored and that the subrecipient is properly informed of the grant requirements. Recommendation: We recommend that the District review invoices from the subrecipient schools and have written agreements signed by all parties that fully explain the federal grant requirements and include other appropriate language to protect the District and to further document the District’s compliance regarding subrecipient monitoring. Response: The grant funding has been cut as of December 31, 2025. The District did not implement the recommended procedures above as there are currently no other subrecipient relationships.

View Audit 394302

Finding 1186589 (2025-001)

Material Weakness 2025

Women in Safe Homes, Inc.

AK

Subrecipient Monitoring Allowable Costs / Cost Principles HUD Housing Programs

Federal Single Audit Finding: 2025-001 Reporting - Significant Deficiency in Internal Control over Compliance Name of Contact Person: Adrienne Gaines, Executive Director Corrective Action: WISH will reinforce existing policies requiring documented evidence of review and approval for all key reports....

Federal Single Audit Finding: 2025-001 Reporting - Significant Deficiency in Internal Control over Compliance Name of Contact Person: Adrienne Gaines, Executive Director Corrective Action: WISH will reinforce existing policies requiring documented evidence of review and approval for all key reports. These controls will ensure approval via physical signature or electronic approval via email correspondence of each key report. Periodic monitoring will be performed to ensure compliance with documentation requirements. Proposed Completion Date: June 30, 2026

View Audit 394292

Finding 1186588 (2025-003)

Material Weakness 2025

Housing for Rockdale Elders, Inc.

MA

Eligibility Subrecipient Monitoring HUD Housing Programs

CORRECTIVE ACTION PLAN March 18, 2026 Housing for Rockdale Elders, Inc. respectfully submits the following corrective action plans for the year ended October 31, 2025: Name and address of independent accounting firm: CohnReznick LLP 350 Granite Street Suite 1200 Braintree MA 02184 Audit period: Nove...

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

View Audit 394285

Finding 1186587 (2025-002)

Material Weakness 2025

Housing for Rockdale Elders, Inc.

MA

HUD Housing Programs Special Tests & Provisions Subrecipient Monitoring

CORRECTIVE ACTION PLAN March 18, 2026 Housing for Rockdale Elders, Inc. respectfully submits the following corrective action plans for the year ended October 31, 2025: Name and address of independent accounting firm: CohnReznick LLP 350 Granite Street Suite 1200 Braintree MA 02184 Audit period: Nove...

CORRECTIVE ACTION PLAN March 18, 2026 Housing for Rockdale Elders, Inc. respectfully submits the following corrective action plans for the year ended October 31, 2025: Name and address of independent accounting firm: CohnReznick LLP 350 Granite Street Suite 1200 Braintree MA 02184 Audit period: November 1, 2024 - October 31, 2025 The findings from the October 31, 2025 schedule of findings and questioned costs is discussed below. The findings are numbered consistently with the number assigned in the schedule. Finding 2025-002 - Special Tests and Provisions - Significant Deficiency Recommendation: We recommend that the Corporation establish internal controls over its residual receipts compliance requirements to ensure that the Corporation is in compliance with Uniform Guidance and its regulatory agreement. Action Taken: Management agrees with the finding and is in the process of revising internal controls to address this issue. Additionally, on February 9, 2026, this was corrected.

View Audit 394285

Finding 1186586 (2025-702)

Material Weakness 2025

State of Wisconsin

WI

Reporting Subrecipient Monitoring § 200.510

Finding 2025-702: Research and Development Cluster—Reporting in the Schedule of Expenditures of Federal Awards Planned Corrective Action: The Universities of Wisconsin (UW) will revise documented procedures for preparing the Schedule of Expenditures of Federal Awards (SEFA) to include updated steps ...

Finding 2025-702: Research and Development Cluster—Reporting in the Schedule of Expenditures of Federal Awards Planned Corrective Action: The Universities of Wisconsin (UW) will revise documented procedures for preparing the Schedule of Expenditures of Federal Awards (SEFA) to include updated steps for the compilation of federal grant activities using the new accounting system by June 30, 2026. Existing procedures will be strengthened and implemented to review whether federal expenditures related to agreements with other state agencies that specify the relevant assistance listing number are property classified in the SEFA. Additional training and guidance will be provided to UW university and administration stakeholders on revised documented procedures as a critical part of the improvement in the SEFA reporting process. Anticipated Completion Date: November 2026 Person responsible for corrective action: Josh Smith Senior Associate Vice President for Finance Universities of Wisconsin josh.smith@wisconsin.edu

View Audit 394279

Finding 1182950 (2025-502)

Material Weakness 2025

State of Wisconsin

WI

Subrecipient Monitoring

This letter is the Wisconsin Department of Transportation's response and corrective action plan for the finding and recommendations made by the State of Wisconsin Legislative Audit Bureau (LAB) in the interim memo dated February 18, 2026. Finding 2025-502: Airport Improvement Program, Infrastructure...

This letter is the Wisconsin Department of Transportation's response and corrective action plan for the finding and recommendations made by the State of Wisconsin Legislative Audit Bureau (LAB) in the interim memo dated February 18, 2026. Finding 2025-502: Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and COVID-19 Airports Programs—FFATA Reporting The Wisconsin Department of Transportation (WisDOT) agrees with the audit finding. Planned Corrective Action: • The WisDOT Bureau of Aeronautics (BOA) will develop written procedures to ensure all suballotments are appropriately reflected in Federal Funding Accountability and Transparency Act (FFATA) reporting. These procedures will include accurate and timely reporting. o Any sub-allotment of $30,000 or more, including any amendments and modifications to the sub-allotment, will be reported no later than the last day of the month following the month in which the sub-allotment was made. • BOA will work with the Federal Aviation Administration (FAA) to obtain clarification on the reporting of the public health emergency sub-allotments. o If it is determined these are exempt from reporting, BOA will obtain written confirmation of such from FAA. o If these funds should be reported, BOA will complete the reporting as soon as practicable after receiving guidance from FAA. Anticipated Completion Date: May 2026 Person responsible for corrective action: Tami Weaver, Section Chief Airport Program Section WisDOT- Division of Transportation Investment Management, Bureau of Aeronautics tamera.weaver@dot.wi.gov

View Audit 394279

Finding 1182945 (2025-400)

Material Weakness 2025

State of Wisconsin

WI

School Nutrition Programs Subrecipient Monitoring Reporting

Finding 2025-400: Child Nutrition Cluster—Federal Funding Accountability and Transparency Act Reporting: Planned Corrective Action: The Department of Public Instruction (DPI) will complete and submit reports for subaward information in the FFATA Subaward Reporting System (FSRS) for the Child Nutriti...

Finding 2025-400: Child Nutrition Cluster—Federal Funding Accountability and Transparency Act Reporting: Planned Corrective Action: The Department of Public Instruction (DPI) will complete and submit reports for subaward information in the FFATA Subaward Reporting System (FSRS) for the Child Nutrition Cluster (CNC) beginning in June 2025. Beginning with June 2025 awards reporting has been completed by the applicable due date (June 2025 awards, reported by July 31, 2025, etc) The internal processes established to ensure proper reporting of subaward has been updated to include payments made for Child Nutrition Cluster grants. Upon completion of the required reporting, a summary of all Child Nutrition Cluster awards is submitted to the Department of Administration, providing the FAIN, Amount, and Date Reported. Anticipated Completion Date: July 2025. Person responsible for corrective action: Michael Brendel, Section Leader Bureau of School Financial Services Division for Libraries & Technology (working title: Division of School & Library Operations) Department of Public Instruction michael.brendel@dpi.wi.gov

View Audit 394279

Finding 1182943 (2025-303)

Material Weakness 2025

State of Wisconsin

WI

Internal Control / Segregation of Duties Procurement, Suspension & Debarment Subrecipient Monitoring § 200.303

Department staff has reviewed the Legislative Audit Bureau’s (LAB) interim audit memo for Finding 2025-303: WIC Supplemental Nutrition Program for Women, Infants, and Children – Service Organization Controls. This is the department’s Corrective Action Plan.  Recommendation (2025-303): WIC Supplemen...

Department staff has reviewed the Legislative Audit Bureau’s (LAB) interim audit memo for Finding 2025-303: WIC Supplemental Nutrition Program for Women, Infants, and Children – Service Organization Controls. This is the department’s Corrective Action Plan.  Recommendation (2025-303): WIC Supplemental Nutrition Program for Women, Infants, and Children – Service Organization Controls. We recommend the Wisconsin Department of Health Services: • Develop and document procedures to complete an annual assessment of the controls in place by each contractor that provides support and security for an IT system used in administering the WIC Special Supplemental Nutrition Program for Women, Infants, and Children program, including the support provider, the cloud provider, and the EBT provider; • Obtain annually available service organization controls audit reports and perform an annual review that includes an assessment of the identified internal control deficiencies and a determination of whether the relevant complementary user entity controls are implemented; and • Prepare and maintain documentation of its annual review and assessment. Wisconsin Department of Health Services Planned Corrective Action: In partnership with DHS’s Information Security Section (ISS), the WIC Program will develop and document procedures to complete an annual assessment of security controls. The WIC Program will annually request SOC reports from all vendors. ISS will review SOC reports identifying deficiencies and risks and ensuring the user entity controls are addressed. DHS will then prepare and maintain documentation of its annual SOC reviews and assessments. Anticipated Completion Date: June 1, 2026 Persons responsible for corrective action: Kari Malone, Section Manager WIC and Nutrition Section, Division of Public Health kari.malone@dhs.wisconsin.gov

View Audit 394279

Finding 1182936 (2025-700)

Material Weakness 2025

State of Wisconsin

WI

Cash Management Subrecipient Monitoring § 200.305

Finding 2025-700: Dairy Business Innovation Initiatives—Cash Management Planned Corrective Action: To comply with federal cash management requirements, Research and Sponsored Programs (RSP) revised all contracts with WCMA to be standard cost-reimbursement only agreements. RSP developed a cash manage...

Finding 2025-700: Dairy Business Innovation Initiatives—Cash Management Planned Corrective Action: To comply with federal cash management requirements, Research and Sponsored Programs (RSP) revised all contracts with WCMA to be standard cost-reimbursement only agreements. RSP developed a cash management guidance that specifies the circumstance and requisites in which a cash advance may be suitable with department and RSP Director approval. The guidance has been shared with pre- and post- award RSP staff. Anticipated Completion Date: April 1, 2026 Person responsible for corrective action: Liz Bevins-Smith, Director of Research Financial Services Research and Sponsored Programs bivinssmith@rsp.wisc.edu

View Audit 394279

Finding 1182935 (2025-047)

Material Weakness 2025

State of South Carolina

SC

Equipment & Real Property Management Subrecipient Monitoring § 200.303 § 200.313

Department of Public Health respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings numbered consistently with the numbers a...

Department of Public Health respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT Department of Health and Human Services [2025-047] (Equipment and Real Property Management) Public Health Emergency Preparedness and Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response Assistance Listing: 93.069 and 93.354 Disposition of Audit Finding: The Department of Public Health concurs with the audit finding. Corrective Action: At the time of the agency restructuring and transfer of assets from the Department of Health and Environmental Control (DHEC) to the Department of Public Health (DPH) and the Department of Environmental Services (DES), the DHEC Asset Manager oversaw the asset transfers to both successor agencies (J060 and P500). During this transition, we were advised by the SCEIS team to temporarily move all agency assets into a single generic fund for each new agency to ensure the transfer process could be completed without system errors. Specifically, one generic funding stream was established for J060 and one for P500 to facilitate the transfer of assets from the previous J040 designations. We gave the auditors an email from the SCEIS team that provided this guidance. To complete the transition, the assets were placed on large transfer documents that were uploaded into SCEIS in bulk. This process was facilitated by the SCEIS team, and we followed their direction throughout the entire transfer process. Due to the complexity and volume of assets involved, it ultimately took close to a year after the agency split for all assets to be successfully moved from their original J040 designations to the new agency structures. Following the transition, our Budget team developed a crosswalk identifying which former J040 grants would correspond to the new J060 grant designations. Based on the information you shared, it appears that the updated grant designations for certain assets were not fully applied or uploaded into SCEIS after the initial transfer into the generic funding stream. As a result, those assets are still present in the system under DPH but are not currently associated with the applicable federal program when reports are generated. To address this, we will work with the SCEIS Asset Management team to determine why the grant designations were not updated as expected and to ensure the affected assets are reassigned to the appropriate grant funding sources in the system. We are unsure how long the correction process will take. If the adjustments must be made individually at the asset level, the updates will be completed by October. Anticipated Completion Date: October 31, 2026 The contact persons responsible for corrective action: . Trey Reed, Director, Bureau of Business Management at 803-898-3522 . Ryan Sims, Director, Support Services, Bureau of Business Management 803-898-3523

View Audit 394274

Finding 1182933 (2025-046)

Material Weakness 2025

State of South Carolina

SC

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.303

Department of Public Health respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings numbered consistently with the numbers a...

Department of Public Health respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT Department of Health and Human Services [2025-046] (Suspension and Debarment) Centers for Disease Control and Prevention Collaboration with Academia to Strengthen Public Health Assistance Listing: 93.967 Disposition of Audit Finding: The Department of Public Health concurs with the audit finding. Corrective Action: In this case, one of the six contracts tested did not have documentation on file to show that a SAM check was done. It is standard practice that when the SAM check is performed, a copy of the results is printed from the SAM.gov website. This is typically a page showing "no exclusions" or, frequently, if the vendor has no Federal contracting history, a screen showing "no results found." If the purchase is the result of a formal written solicitation, the solicitation contains the standard Compendium clause, “Certification Regarding Debarment and Other Responsibility Matters”. To strengthen compliance, the agency procurement director created an instructional video on March 15, 2024, guiding staff through the SAM check process, which is complex and lacks clear federal instructions, and distributed it to procurement staff. On January 27, 2025, this requirement was reinforced again in an email to all buyers, which included the video link and a detailed explanation of when SAM checks are necessary. The importance of, and process for, the SAM check is also a frequent topic at our monthly staff meetings. Most recently, it was a "Reminder" topic at both our January and February 2026 staff meetings. Moving forward, we will continue reminding staff of this requirement and incorporate it as a checkpoint in our quality assurance review before issuing purchase orders. Anticipated Completion Date: June 30, 2026 The contact persons responsible for corrective action: . Trey Reed, Director, Bureau of Business Management at 803-898-3522 . Tripp Clark, Director, Procurement, Bureau of Business Management at 803-898-3485

View Audit 394274

Finding 1182930 (2025-045)

Material Weakness 2025

State of South Carolina

SC

Allowable Costs / Cost Principles Subrecipient Monitoring § 200.303

Department of Public Health respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings numbered consistently with the numbers a...

Department of Public Health respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT Department of Health and Human Services [2025-045] (Activities Allowed or Unallowed and Allowable Costs/Cost Principles) Centers for Disease Control and Prevention Collaboration with Academia to Strengthen Public Health Assistance Listings: 93.967 Disposition of Audit Finding: The Department of Public Health concurs with the audit finding. Corrective Action: In this case, 1 of 70 transactions tested did not contain a supervisory review and approval of a journal entry. The agency has implemented additional procedures to ensure that all applicable documents receive the required second-level review and signature prior to final processing. These processes include reinforcing review requirements with staff and incorporating additional verification steps to confirm that a second signature is obtained and documented. The agency will continue to monitor this control to ensure compliance going forward. Anticipated Completion Date: June 30, 2026 The contact person responsible for corrective action: . Katie Tillman, Director, Grant Compliance at 803-898-4103

View Audit 394274

Finding 1182929 (2025-044)

Material Weakness 2025

State of South Carolina

SC

Subrecipient Monitoring Special Tests & Provisions § 200.303

Department of Public Health respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings numbered consistently with the numbers a...

Department of Public Health respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT Department of Health and Human Services [2025-044] (Special Tests and Provisions) Immunization Cooperative Agreements Assistance Listing: 93.268 Disposition of Audit Finding: Management understands and respects the audit process, while maintaining our disagreement with this finding. The tardiness of the data entry was due to staff turnover and overburdening of remaining staff, not due to lack of oversite or "falling through the cracks". Internal email communication forwarded to the audit team evidences that the specific item in question was being tracked and followed up on to ensure completion. Corrective Action: The 1 of the 60 site visit follow-ups was completed within the appropriate timeframe for this site. However, due to loss of staff, the documentation was not completely done in a timely manner. The documentation has since been updated by the Lowcountry Compliance Unit Manager in lieu of the former staff member, and the site visit reviewed by VFC Coordinator in Secured Access Management Services. VFC Coordinator continues to monitor and track site visit data and communicates to compliance unit managers to stay ahead of upcoming due dates and assist in supporting teams as needed. These communications will be increased to occur monthly in the last week of the month. Anticipated Completion Date: Ongoing The contact person(s) responsible for corrective action and phone number(s): McColloch Salehi - 803-587-1537

View Audit 394274

Finding 1182927 (2025-043)

Material Weakness 2025

State of South Carolina

SC

Cash Management Subrecipient Monitoring § 200.303

Department of Public Health respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings numbered consistently with the numbers a...

Department of Public Health respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT Department of Health and Human Services [2025-043] (Cash Management) Immunization Cooperative Agreements and Centers for Disease Control and Prevention Collaboration with Academia to Strengthen Public Health Assistance Listings: 93.268 and 93.967 Disposition of Audit Finding: The Department of Public Health concurs with the audit finding. Corrective Action: The agency has implemented additional procedures to ensure that all applicable documents receive the required second-level review and signature prior to final processing. These processes include reinforcing review requirements with staff and incorporating additional verification steps to confirm that a second signature is obtained and documented. The agency will continue to monitor this control to ensure compliance going forward. The overdraw observed for Immunizations was the result of a timing issue. A draw was processed based on the cash balance at that time, and a subsequent journal entry reclassified revenue. This sequence temporarily created an overstated cash balance; however, the balance was then applied to payroll and other eligible expenses. Regarding the Collaboration with Academia grants, these discrepancies occurred during a period when the agency was utilizing the draw database, which at that time was not pulling accurate data. The agency has since corrected the process used to perform federal draws to ensure accuracy and proper reconciliation. Any remaining balance was applied to allowable program expenses, and the grant has since been properly closed out with no remaining balance. Anticipated Completion Date: June 30, 2026 The contact person responsible for corrective action: . Katie Tillman, Director, Grant Compliance at 803-898-4103

View Audit 394274

Finding 1182924 (2025-042)

Material Weakness 2025

State of South Carolina

SC

Matching / Level of Effort / Earmarking Subrecipient Monitoring § 200.303

Department of Public Health respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings numbered consistently with the numbers a...

Department of Public Health respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT Department of Health and Human Services [2025-042] (Reporting) Maternal and Child Health Services Block Grant to the States Assistance Listings: 93.994 Disposition of Audit Finding: The Department of Public Health concurs with the audit finding. Corrective Action: The variance identified occurred because the amounts reported were compiled from internal supporting documentation rather than directly from SCEIS. While reported totals met the minimum required thresholds for Matching and Earmarking, the department recognizes the importance of alignment with the official accounting system. Going forward, the budget analyst will prioritize using SCEIS data when preparing reports, and the department will continue to monitor reporting procedures to ensure accuracy and consistency. Anticipated Completion Date: June 30, 2026 The contact persons responsible for corrective action: . Meredith Murphy, Director, Budgets & Financial Planning at 803-898-4222

View Audit 394274

Finding 1182923 (2025-041)

Material Weakness 2025

State of South Carolina

SC

Subrecipient Monitoring Period of Performance Significant Deficiency § 200.303 § 200.403

Department of Public Health respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings numbered consistently with the numbers a...

Department of Public Health respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT Department of Health and Human Services [2025-041] (Period of Performance) Maternal and Child Health Services Block Grant to the States Assistance Listings: 93.994 Disposition of Audit Finding: The Department of Public Health concurs with the audit finding. Corrective Action: For 5 of the 60 transactions tested, 1 had costs incurred before the period of performance date and 4 had program expenditures not obligated and expended in accordance with program requirements. This was the result of human error/misclassification during processing. We are reinforcing guidance with both program and budget staff to prevent similar errors in future reporting periods. Anticipated Completion Date: June 30, 2026 The contact persons responsible for corrective action: . Meredith Murphy, Director, Budgets & Financial Planning at 803-898-4222 . Danielle Wingo, Director, MCH Bureau at 640-649-9292

View Audit 394274

Finding 1182922 (2025-040)

Material Weakness 2025

State of South Carolina

SC

Matching / Level of Effort / Earmarking Subrecipient Monitoring § 200.303

Department of Public Health respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings numbered consistently with the numbers a...

Department of Public Health respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT Department of Health and Human Services [2025-040] (Earmarking and Level of Effort) Maternal and Child Health Services Block Grant to the States Assistance Listings: 93.994 Disposition of Audit Finding: The Department of Public Health concurs with the audit finding. Corrective Action: We acknowledge that the level of effort amount reflected in the electronic signature approval for the FY26 Application/FY24 Annual Report was understated by $279,390. This variance resulted from a data extraction issue and does not reflect unallowable expenditures or misallocation of funds. The overall level of effort for the grant remains supported and exceeds the minimum required, and the impact of the discrepancy is immaterial relative to the total grant award. Controls are in place to review and validate level of effort allocations during report preparation, and any updates identified during this process will be accurately reflected in the submitted documentation. The agency has had ongoing discussions with the Grantor regarding our methodology for allocating administrative costs. During those discussions, we were informed that states have flexibility in how the calculation is prepared and we were provided with examples of methodologies used by several other states. While our administrative percentage for the current reporting period slightly exceeded the 10 percent, we have been actively working with the Grantor to evaluate alternative approaches for calculating these costs. Due to the recent agency split, HPS reorganization, and bureau management transitions, we have continued using our current methodology while considering potential adjustments. While reviewing these methodologies, we will assess administrative costs to ensure compliance with the 10 percent cap in future periods. Anticipated Completion Date: June 30, 2026 The contact person responsible for corrective action: . Meredith Murphy, Director, Budgets & Financial Planning at 803-898-4222

View Audit 394274

Finding 1182921 (2025-039)

Material Weakness 2025

State of South Carolina

SC

Reporting Subrecipient Monitoring § 200.303

Department of Public Health respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings numbered consistently with the numbers a...

Department of Public Health respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT Department of Health and Human Services [2025-039] (Reporting and Matching) Maternal and Child Health Services Block Grant to the States Assistance Listings: 93.994 Disposition of Audit Finding: The Department of Public Health concurs with the audit finding. Corrective Action: We provided a reconciliation for the MCH Block Grant that shows that the expenditures reconcile to the amounts reported on the Federal Financial Report (FFR). This report was generated using the KSB1 report in the SC Enterprise Information System (SCEIS). The indirect cost (IDC) amount may not fully align because an incorrect rate was entered on the FFR. The applicable rates should have been applied as follows: . 19.40% for the period 10/1/2022 – 6/30/2023 . 20.30% for the period 7/1/2023 – 6/30/2024 . 24.00% for the period 7/1/2024 – 9/30/2024 Additionally, in the Payment Management System (PMS) the IDC calculation requires entry of the rate and the base amount, and the system automatically calculates the federal share. Because the system performs this calculation, minor rounding differences may occur. At the time of submission, the employee responsible for preparing and submitting the FFR was new to the role and relied on the matching requirement as presented in the Notice of Award (NOA) that was in effect at that time. The NOA included an incorrect matching amount, which was not removed until an amendment was issued after the FFR was submitted and approved in PMS. For the matching and indirect cost, we will have a more detailed second level of review. We will also require that the Cost Accountant obtains any matching information from the Budget Analyst assigned to the grant. Anticipated Completion Date: June 30, 2026 The contact person responsible for corrective action: . Katie Tillman, Director, Grant Compliance at 803-898-4103

View Audit 394274

Finding 1182920 (2025-038)

Material Weakness 2025

State of South Carolina

SC

Allowable Costs / Cost Principles Subrecipient Monitoring § 200.302 § 200.303

Department of Public Health respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings numbered consistently with the numbers a...

Department of Public Health respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT Department of the Treasury [2025-038] (Activities Allowed or Unallowed and Allowable Costs/Cost Principles) Coronavirus State and Local Fiscal Recovery Funds Assistance Listing: 21.027 Disposition of Audit Finding: The Department of Public Health concurs with the audit finding. Corrective Action: Although significant progress has been made and the invoice in question was short-paid for unallowable charges, there was a mistake in a formula calculation which caused the contractor to be underpaid by $313. We will continue with our strengthened review process and verify the documentation as well as the formulas in the spreadsheet prior to reimbursement. Anticipated Completion Date: June 30, 2026 The contact persons responsible for corrective action: . Trey Reed, Director, Bureau of Business Management at 803-898- 3522 . Marshall Rock, Director, Facilities, Bureau of Business Management 803-898-3510

View Audit 394274

Finding 1182919 (2025-037)

Material Weakness 2025

State of South Carolina

SC

Subrecipient Monitoring § 200.303

The Department of Commerce respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The finding from the schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the numbers as...

The Department of Commerce respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The finding from the schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT U.S. Department of Housing and Urban Development 2025-037 Community Development Block Grant – Assistance Listing No. 14.228 Disposition of Audit Finding: The Department of Commerce accepts the finding that the FFATA was submitted late. This delay was not the result of inattention or disregard for compliance requirements. Rather, it occurred during a period of significant transition in federal reporting requirements. Specifically, the U.S. Department of Housing and Urban Development (HUD) migrated FFATA reporting to a new platform without providing sufficient implementation guidance to CPD prime recipients, including South Carolina’s State CDBG Program. Compounding this challenge, the HUD Exchange website, previously a primary source of program guidance, was taken offline on July 31, 2024, for redesign and did not relaunch until November 21, 2025, creating a prolonged information gap. During this time, the State CDBG Program relied on communications from the regional HUD Field Office and made inquiries regarding FFATA reporting requirements and system processes. Once the State CDBG Program was informed that the new reporting system was operational and prepared to accept FFATA data, staff promptly followed established internal review protocols and submitted the required information. Corrective Action: The State CDBG Program management will continue to follow program review protocols and will make every attempt to collect update information from the appropriate federal sources, national Community Development organizations (i.e.: COSCDA – Council of State Community Development Agencies) and contract consultants to the State CDBG Program to ensure adherence with federal regulations and reporting deadlines. Anticipated Completion Date: March 1, 2026, CDBG program management has adopted this corrective action plan to ensure timely submission of all required FFATA reporting. South Carolina Department of Commerce contact(s) responsible for corrective action: • Caroline Griffin, Deputy Director – Business Incentives and Community Development (803)737-0472 or cgriffin@sccommerce.com • Lisa Huff, Federal Program Data Manager - Business Incentives and Community Development (803)737-0292 or ehuff@sccommerce.com The Department remains committed to maintaining full compliance with federal reporting requirements and continues `to closely monitor evolving federal guidance to safeguard critical funding for the communities we serve.

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Finding 1182917 (2025-036)

Material Weakness 2025

State of South Carolina

SC

Allowable Costs / Cost Principles Subrecipient Monitoring § 200.303 § 200.405

The Office of Resilience respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The finding from the schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the numbers assi...

The Office of Resilience respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The finding from the schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT U.S. Department of Housing and Urban Development 2025-036 Community Development Block Grant – Assistance Listing No. 14.228 Disposition of Audit Finding: The Office of Resilience does not agree this item rises to the level of a finding and could be sufficiently addressed with a recommendation. SCOR acknowledges this process could be improved and will act to better support this transaction going forward. Corrective Action: To provide additional support and clarification on the use of cost allocation percentages, SCOR Finance will create a memo to file each time the cost allocation changes. The current methodology is based on headcount and is subject to change frequently. At the beginning of each quarter, SCOR Finance will recalculate the cost allocation percentage based on agency headcount on the last day of the previous quarter. The quarterly updated allocation percentages will be the basis of allocating agency wide shared costs. A copy of the memo will be attached to the SCEIS payable document as support. Anticipated Completion Date: Immediately. SCOR Finance will go back to the beginning of FY26, recalculate the cost allocation percentages, create the memo to file and post correcting journal entries as needed. Names of the contact persons responsible for corrective action: • Andrew DeRienzo - CFO at 803-422-0092 • Sarah Reynolds – Accounting Manager at 803-896-0038 • Tiffany Frye -Budget Manager at 803-896-6704

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Finding 1182915 (2025-035)

Material Weakness 2025

State of South Carolina

SC

Subrecipient Monitoring Reporting Significant Deficiency § 200.303

The South Carolina Department of Social Services (SCDSS) respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbere...

The South Carolina Department of Social Services (SCDSS) respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT U.S. Department of Health and Human Services Temporary Assistance for Needy Families – Assistance Listing No. 93.558 Disposition of Audit Finding: The SCDSS concurs with the audit finding. Corrective Action: Management will ensure that the discrepancy noted for one data element related to recording the number of months countable toward the federal time limit for assistance is corrected and retransmitted. Management and a lead worker will review 15 to 25 cases per reviewer per month using the form developed that will be completed with each review. The form will be signed by the reviewer, the lead worker, and the Program Coordinator II. If an error is found during the review process, that case will be corrected within 10 days and re-transmitted. Trainings will be conducted monthly to discuss errors and ensure everyone is trained on policies and procedures. Anticipated Completion Date: June 30,2026 Names of the contact persons responsible for corrective action: • Kimberly Boyd, Program Coordinator II at 803-898-7590 • Michelle Harley, Lead Worker at 803-898-7595

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Finding 1182914 (2025-034)

Material Weakness 2025

State of South Carolina

SC

Subrecipient Monitoring Eligibility Significant Deficiency § 200.303

The South Carolina Department of Social Services (SCDSS) respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbere...

The South Carolina Department of Social Services (SCDSS) respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT U.S. Department of Health and Human Services Child and Adult Care Food Program – Assistance Listing No. 10.558 Disposition of Audit Finding: The SCDSS concurs with the audit finding. Corrective Action: SC CACFP staff has reviewed USDA CACFP Federal Regulation 7 CFR 226.6(b)(3) and 2 CFR 200.303 regarding notifying new and renewing institutions applying of the approval or disapproval by the State agency. Additional training will be provided to staff processing CACFP applications. State agency staff reviewing applications for approval will monitor the SC CACFP Online Application Dashboard and emails for pending final approvals for CACFP Applications and will complete the approval or denial within 30 days of the pending final approval date. Anticipated Completion Date: March 31, 2026 Names of the contact persons responsible for corrective action: • Greta F. Avery, CACFP Supervisor at (803) 898-7576 • Dyeretta M. Fashion, CACFP Supervisor at (803) 898-0945 • Mary A. Young, CACFP Manager at (803) 898-0958

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Finding 1182913 (2025-033)

Material Weakness 2025

State of South Carolina

SC

Subrecipient Monitoring Reporting Matching / Level of Effort / Earmarking § 200.303

The South Carolina Department of Social Services (SCDSS) respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbere...

The South Carolina Department of Social Services (SCDSS) respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT U.S. Department of Health and Human Services Child Care and Development Fund (CCDF) Cluster – Assistance Listing No. 93.575 and 93.596 Disposition of Audit Finding: The SCDSS concurs with the audit finding. Corrective Action: The Department now has controls in place for a more in-depth review by the Grants Accounting Manager of federal reporting to ensure expenditures are reported accurately on the Federal ACF 696 Form. Anticipated Completion Date: Completed Names of the contact persons responsible for corrective action: • Courtney Hogue, Controller at 803-898-7488 • Hiba Khalaf, Grants Accounting Manager at 803-898-7484

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Finding 1182909 (2025-032)

Material Weakness 2025

State of South Carolina

SC

Subrecipient Monitoring § 200.303

The South Carolina Department of Social Services (SCDSS) respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbere...

The South Carolina Department of Social Services (SCDSS) respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT U.S. Department of Health and Human Services Child Care and Development Fund (CCDF) Cluster – Assistance Listing No.93.575 Disposition of Audit Finding: The SCDSS concurs with the audit finding. Corrective Action: The Department has established training for grants accountant staff and an internal tracking log to track subawards issued to ensure FFATA submissions to SAM.gov within the required timeframe. This process was implemented on July 1,2025 Anticipated Completion Date: Completed Names of the contact persons responsible for corrective action: • Courtney Hogue, Controller at 803-898-7488 • Hiba Khalaf, Grants Accounting Manager at 803-898-7484

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