Corrective Action Plans

The Clerk will ensure all reports are accurately submitted

The BOCC acknowledges the finding and I will improve reconciliation and review procedures used in preparing federal reports. County officials involved in grant reporting will work together to ensure repotted obligations and expenditures are reconciled to supporting records before submission.

FINDING 2025-006 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Stan Heil Contact Phone Number and Email Address: 812-542-0506-sheil@floydcounty.in.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The corrective action plan provided in FY 2025 was enacted and reviews did occur as committed to in FY 2024 Audit review and Corrective Action Plan. As stated in 2025 Corrective Action Plan for Audit Year 2024, the review was not effective in detecting and correcting previously enacted errors or misreported values in submitted reports. These previous reports have been “locked” from modifications and cannot be amended in future periods. The Commissioners did appoint the Chief Operations Officer and Chief Financial Officer to review future reporting for compliance. This move became effective in August 2025. The internal controls process has been strengthened with both positions collaborating on and reviewing for accuracy and required timely reporting. The final step of the internal control process is to have the President of the Commissioners review and submit the final quarterly reports. The Quarter III & IV FY 2025 is identified in the finding with 3 project errors $21,693. The CAUSE as identified on the Audit Report states “The County’s oversight process for filing the P&E reports did not detect errors. The errors were the result of including expenditures from the incorrect time periods.” The strengthened internal controls (The Chief Operations Officer and Chief Financial Officer will independently review the reporting and documentation and each will sign off on signifying their review and approval of submissions) are to ensure that all values presented to the Dept of Treasury are accurately reported and vetted with the local County reports thru the County Auditor’s Office. The P&E reports are reflective of the time period of payment, to ensure the Auditor records agree with the Treasury reporting and not timed to the completion/submission of the payment requests. All future efforts will be directed to compliance with the recommendations and requirements of the Treasury reporting. Floyd County agrees with the RECOMMENDATION as provided within the Audit Report – Strengthening the County’s system of internal controls to provide for segregation of duties in the preparation and review of federal reports and providing the Treasury with complete and accurate information for the P&E reports. Anticipated Completion Date: The anticipated completion date of the Corrective Action Plan identified above will occur September 30, 2026 reporting as the exposure of this finding-weakness, is being addressed.

The City does have sufficient internal controls over ARP reporting. Reports submitted matched the 2025 cumulative expenditures at the time that reporting was due. However, as is always the case with year-end invoices for the fourth quarter 2025 reporting period were processed after the report due date and updated on our internal ARP spending tracking. Because the Treasury Department does not have a process to amend report submissions, the amounts were included in the next period (1st quarter 2026) report. Responsible Person: Sheila Faour, Director of Finance Anticipated Completion Date: September 30, 2026

FINDING 2025-020 Finding Subject: Education Stabilization Fund – Allowable Costs/Cost Principles Contact Person Responsible for Corrective Action: Darice Austin-Phillips, Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, daustin@sbcsc.k12.in.us , atahmid@sbcsc.k12.in.us, mjohns2@sbcsc.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Vendor Service Contracts: Standardized contract guidelines for all non-employee services. Contracts must specify exact rates, hours, duration, maximum billing limits, and include standard legal terms. Approval Hierarchy: Contracts under $50,000 can be preliminarily approved by the Superintendent and later presented to the Board. Contracts over $50,000 require a dedicated Board presentation and approval. Contract Procurement Rules: Enforced tiered purchasing thresholds—Micro Purchases (no quote), Small Purchases (3 quotes required), and Large Purchases (bid process). Change Orders: Requires formal documentation and approval. Any change order increasing project costs by 10% or more requires pre-approval from the School Board.

FINDING 2025-018 Finding Subject: Teacher and School Leader Incentive Grants (Formerly the Teacher Incentive Fund) – Condition of Records Contact Person Responsible for Corrective Action: Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, atahmid@sbcsc.k12.in.us, mjohns2@sbcsc.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Vendor Setup & Conflict Verification: Standardized new vendor onboarding under the Purchasing Director. Requires W-9s, registration forms, annual SAM.gov suspension/debarment checks, state business registration checks, and local property tax searches to rule out employee/board conflicts of interest. Multi-Phase Procurement Overhaul: • Phase 1 (2025–2026): Established board-approval workflows for all contracts, quotes, and invoices. • Phase 2 (2025–2027): Enforced proper quote, bid, and special purchasing compliance. • Phase 3 (2026–2027): Updating board policies and internal controls to enforce federal uniform purchasing guidelines. Anticipated Completion Date: September 30, 2024 (grant ended). January 1, 2025 is when grant award documentation sharing was required.

FINDING 2025-017 Finding Subject: Teacher and School Leader Incentive Grants (Formerly the Teacher Incentive Fund) – Allowable Cost/Cost Principles Contact Person Responsible for Corrective Action: Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, atahmid@sbcsc.k12.in.us, mjohns2@sbcsc.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: This grant was managed by a continued succession of people. The grant information was not centrally housed. Centralized Reporting: The Finance Department now mandates that all approved grant documentation (Grant Award Notifications, reimbursement forms, budget breakdowns) be submitted to Finance immediately. Succession Planning Policy: Added strict continuity protocols to the IC Manual, affirming that all data belongs to the corporation. Requirements include maintained system documentation, account deactivation within 24 hours of employee departure, and formal knowledge handoffs. Segregation of Duties: Updated policy to ensure no single individual manages any financial process (receivables, purchasing, or inventory) end-to-end. Anticipated Completion Date: September 30, 2024 (grant ended). January 1, 2025 is when grant award documentation sharing was required.

FINDING 2025-016 Finding Subject: Teacher and School Leader Incentive Grants (Formerly the Teacher Incentive Fund) – Activities Allowed or Unallowed Contact Person Responsible for Corrective Action: Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, atahmid@sbcsc.k12.in.us, mjohns2@sbcsc.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Centralized Reporting: The Finance Department now mandates that all approved grant documentation (Grant Award Notifications, reimbursement forms, budget breakdowns) be submitted to Finance immediately. Succession Planning Policy: Added strict continuity protocols to the IC Manual, affirming that all data belongs to the corporation. Requirements include maintained system documentation, account deactivation within 24 hours of employee departure, and formal knowledge handoffs. Segregation of Duties: Updated policy to ensure no single individual manages any financial process (receivables, purchasing, or inventory) end-to-end. Anticipated Completion Date: September 30, 2024 (grant ended). January 1, 2025 is when grant award documentation sharing was required.

FINDING 2025-013 Finding Subject: Gaining Early Awareness and Readiness for Undergraduate Programs – Procurement, Suspension, Debarment Contact Person Responsible for Corrective Action: Chad Addie, Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, caddie@sbcsc.k12.in.us, atahmid@sbcsc.k12.in.us, mjohns2@sbcsc.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Enforced updated Internal Controls Manual purchasing thresholds and pre-approval workflows. Executing a multi-step resolution: board approval workflows established in 2025–2026, proper procurement/bidding compliance expanded through 2026–2027, and updating board policy to enforce uniform federal guidelines in 2026–2027. Anticipated Completion Date: June 30, 2027

FINDING 2025-012 Finding Subject: Gaining Early Awareness and Readiness for Undergraduate Programs – Allowable Costs / Cost Principles Contact Person Responsible for Corrective Action: Chad Addie, Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, caddie@sbcsc.k12.in.us, atahmid@sbcsc.k12.in.us, mjohns2@sbcsc.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Contract Retention: HR and Regional Data Services updated software archives to prevent loss of administrative records. Grant Personnel Verification: Grant fiscal officers must review and sign Payroll Certification Reports to confirm payroll accuracy for employees charged to the grant. Payroll & Overtime Controls: All employee compensation must receive prior School Board approval. Implemented a formal 10-step stipend approval workflow and mandated pre-approval for all overtime hours. Anticipated Completion Date: Completed by June 30, 2026

FINDING 2025-007 Finding Subject: Title I Grants to Local Educational Agencies - Allowable Costs/Cost Principles Contact Person Responsible for Corrective Action: Darice Austin-Phillips, Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, daustin@sbcsc.k12.in.us, atahmid@sbcsc.k12.in.us, mjohns2@sbcsc.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Data & HR Retention: Updated software stores and archives via Regional Data Services to prevent administrative record loss. Payroll & Compensation: Enforced required School Board pre-approval for all compensation. Instituted a formal 10-step stipend approval workflow and mandated supervisor pre-approval for all overtime hours. Supporting Documents: Human Resources is responsible for saving and maintaining all personnel requisitions and contracts. Overtime Policy: Mandates supervisor pre-approval before overtime hours are worked Anticipated Completion Date: Corrected 06/30/2026

CORRECTIVE ACTION PLAN FINDING 2025-005 Finding Subject: Special Education Cluster (IDEA) - Condition of Records Contact Person Responsible for Corrective Action: Kwalfle Scott-Bradley, Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, kscottbradley@sbcsc.k12.in.us, atahmid@sbcsc.k12.in.us, mjohns2@sbcsc.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Reimbursement & Approval Process: Standardized reimbursement requests to require full supporting documentation (transaction details and summary reports). The Director of Federal Grants filters expenditures since the prior request, reconciles totals against disbursements, and obtains CFO approval before submitting. Resolution of Over-Expenditures: Over-expenditures identified during the audit cycle were resolved in January 2026 via School Board approval by transferring unallowable and excess expenditures to the general fund. Category Monitoring: The Special Education Department will monitor budget limits continuously to ensure individual grant categories are not over-expended. Anticipated Completion Date: Completed January 2026

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

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

Finding 2025-004 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – Period of Performance Contact Person Responsible for Corrective Action: Debbie Morton-Crum, County Auditor Contact Phone Number: 765-482-2940 Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: My office will put internal controls in place to make sure all invoices paid under the Covid-19 grant funds are entered into the correct quarter for reporting purposes. The Deputy Auditor will prepare all of the invoices for the grant funds and the Auditor will check to make sure the claims are for the correct period. Anticipated Completion Date: August 2026

FINDING 2025-001 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Lisa Clark/Benock Contact Phone Number and Email Address: 812-885-2502 lcbenock@knoxcounty.in.gov Views of Responsible for Corrective Action: We concur with the finding. Description of Corrective Action Plan: The annual reporting for fund 8950 – Coronavirus State and Local Fiscal Recovery Funds with the Treasury shall be reviewed by an independent accountant to verify that all the information is correct and reported per reporting compliance guidelines. In addition, the County Auditor will review the expenditures agree with the ledger. Anticipated Completion Date: April 30, 2027, the due date of the next annual reporting in 2027

FINDING 2025-002 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Burzynski Thaddeus Contact Phone Number and Email Address: 219-755-3200, burzytx@lakecountyin.org Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The County filed each quarterly report with the federal government through the ARPA reporting portal every quarter and made sure it balanced. The County will develop and implement a proper system of internal controls and segregation of duties where a County employee verifies the work performed by the consultant. This will ensure accuracy and correctness of all quarterly P & E Reports. Anticipated Completion Date: December 31, 2026

2025-001 – Cash Management Corrective action plan: 1. Remittance of $116,558.82 to the Department of Health and Human Services Payment Management System. Completed September 21, 2026. 2. Adopt a written cash management and drawdown procedure as an amendment to NFEAIE’s Financial Management Policies and Procedures Manual, requiring that each request be limited to disbursements expected within a defined period not to exceed 45 days, that the request identify the disbursements it supports, that the Chief Financial Officer (CFO) approve the request before submission, that the request and its supporting schedule be retained in the award file, and that any direction from an awarding agency to draw on a different schedule, or any award term authorizing a different payment basis, be documented in writing and retained in the award file. 3. Amend the manual to assign the CFO responsibility for computing interest earned on federal advances not less than semiannually, to prescribe the allocation of interest between federal and non-federal funds where accounts are commingled, to apply the $500 annual retention threshold, to require the amount payable to the federal government to be recorded in the period earned, and to require remittance through the Payment Management System. Interest on federal advances is currently being accrued as a payable in the period earned, as reflected in journal entry JE-INT-2026H1 recorded at June 30, 2026, and will continue to be recorded on at least a semi-annual basis. 4. Evaluate holding federal advances in a separate account so that an allocation between federal and non-federal funds is not required, and implement if operationally feasible. 5. Present both procedures to the Finance Committee and the Board of Directors for adoption at the Board's fourth quarter 2026 meeting. Personnel responsible for corrective action: Nicholas Cunningham, CFO Estimated corrective action completion date: December 31, 2026

2025-001: Cash Management: Federal Funds Drawn Down for Indirect Costs not yet Liquidated – Research and Development Cluster Condition During testing of cash management and indirect cost allocations, it was noted that approximately $900,000 in costs included in the Institute's indirect cost pool remained recorded in accounts payable and had not been disbursed (liquidated) as of December 31, 2025. Despite these costs not yet being paid, the related federal funds had already been drawn down from the awarding agency. Criteria 2 CFR 200.305(b) requires non-federal entities operating under the advance payment method to minimize the time elapsing between the drawdown of federal funds and the disbursement of those funds for program purposes, and to limit draws to amounts needed for immediate cash requirements. Costs recorded in accounts payable but not yet paid do not represent a disbursement and therefore do not constitute an immediate cash need sufficient to support a drawdown. Additionally, 2 CFR 200.1 and 2 CFR 200.413/200.414 contemplate that costs included in the indirect cost pool and allocated to federal awards should reflect costs that are allowable, allocable, and appropriately recognized in the period in which they are incurred and settled in accordance with the Institute's established accounting practices and cash management controls. Cause The Institute's process for requesting federal drawdowns is based on costs recorded on an accrual basis (i.e., invoices entered into accounts payable and included in the indirect cost pool) rather than on the actual disbursement date. As a result, drawdown requests were not reconciled to actual cash outlays, allowing draws to occur before the related liabilities were paid. Effect The Institute drew down federal cash in advance of its immediate cash needs, resulting in excess federal funds on hand for a period during which $900,000 in related costs remained unpaid. This condition represents a noncompliance with federal cash management requirements and may expose the Institute to: • Liability for interest owed to the federal government under the Cash Management Improvement Act (CMIA) for the period the funds were held prior to disbursement; • Questioned costs to the extent the $900,000 was allocated through the indirect cost rate prior to liquidation; and • A control deficiency in the reconciliation between the accounts payable subledger, indirect cost pool, and cash drawdown requests. Recommendation We recommend that the Institute: 1. Revise its drawdown procedures so that federal cash requests are tied to actual disbursement dates rather than accrual/invoice entry into accounts payable; 2. Implement a monthly reconciliation between drawdown requests, the accounts payable aging report, and amounts included in the indirect cost pool; 3. Evaluate whether the $900,000 should be removed from the indirect cost pool for the affected period until liquidated, and adjust the indirect cost rate calculation accordingly if required; 4. Calculate potential interest liability under CMIA for the period excess federal cash was held and remit if applicable; and 5. Document and implement written cash management policies and procedures addressing the timing of drawdowns relative to disbursement. Management Response Management acknowledges the finding and the management staff of the Institute take seriously the federal compliance requirements that apply to drawing funds from the DHHS Payment Management System. The Institute recognizes that it has drawn down excess funds. The Institute plans to improve policies and procedures for cash management in 2026 that will ensure the calculation for allowable cash draw for actual immediate cash needs is complete and accurate. Action Taken Scintillon plans to improve policies and procedures for cash management in 2026 that will ensure the calculation for allowable cash draw for actual immediate cash needs is complete and accurate.

FINDING 2025-003 Finding Subject: Drinking Water State Revolving Fund – Procurement Contact Person Responsible for Corrective Action: Beth Stocking, Clerk-Treasurer Contact Phone Number and Email Address: 574-223-2510 clerk@rochester.in.us Views of Responsible Officials: “We concur with the finding.” Description of Corrective Action Plan: The City concurs with the finding. The City will adopt and use written procurement procedures for purchases made with federal award funds that incorporate applicable 2 CFR Part 200 requirements and the terms of each federal award. Before a purchase or contract is initiated, the City will identify whether federal funds are involved and determine the required procurement method based on the applicable threshold and type of procurement. The City will use required competitive procedures, public advertising, and formal procurement methods when applicable. Architectural and engineering professional services will follow applicable qualifications-based competitive proposal requirements. Any permitted noncompetitive procurement will include documented justification. Procurement files will retain solicitations, quotations or proposals, evaluations, approvals, contracts, and documentation supporting the method and selection. The Clerk-Treasurer will coordinate review of federal procurement requirements with the responsible department and professional advisors before federally funded contracts are executed, and personnel involved in federal awards will be instructed on the procedures. Anticipated Completion Date: December 31, 2026, with the procedures to be applied immediately to new procurements involving federal award funds.

FINDING 2025-004 Finding Subject: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds – Reporting Summary of Findings: Material Weakness, Modified Opinion The information submitted included amounts based on the incorrect period, amounts that should have been omitted, and amounts which were based on budgeted amounts instead of actual amounts, as such the reports were not fairly presented. Errors identified included the following:  Total Current Obligations for Government Services were overstated by $145,000.  Total Current Obligations for Roundabout were overstated by $323,628.  Total Current Obligations for Fairgrounds were overstated by $97,362. Contact Person Responsible for Corrective Action Plan: Janet Lloyd, Clinton County Auditor Contact’s Phone Number: 765.659.6330 Contact’s Email Address: jlloyd@clintoncountyin.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The Auditor did take tremendous care to create a spreadsheet to make sure expenditures were reported in the correct time periods for 2025. However, there were reporting errors. The First Deputy will review the timeframe and expenditures as well as we will ensure there are several sets of eyes on the documentation before submitting the P&E report. We will have both the Auditor and First Deputy create the spreadsheet and review and sign before submitting. Anticipated Completion Date: December 31, 2026

FINDING 2025-003 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Cindy Poore, Director of Finance and Records Contact Phone Number and Email Address: 317-733-2809, cpoore@zionsville-in.gov Views of Responsible Officials: We concur with this finding. Explanation and Reasons for Disagreement: The field in question was not completed, however the total amount obligated was accurate. This is also how we completed the report in prior years and it was not questioned. We will make sure that the field is completed going forward. Anticipated Completion Date: 8/19/26

FINDING 2025-003 Finding Subject: Reporting Contact Person Responsible for Corrective Action: Lisa Simmons, Auditor Contact Phone Number and Email Address: (765) 348-1620 lsimmons@blackfordcounty.in.gov Views of Responsible Officials: The County agrees with the finding regarding internal controls over the reporting requirements associated with the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program. Description of Corrective Action Plan: The County recognizes that, although the required Project and Expenditure (P&E) report was prepared and submitted to the U.S. Department of the Treasury, the County did not have an adequate documented oversight and review process in place prior to submission. To strengthen internal controls, the County will establish a formal process for the preparation, review, and submission of all required SLFRF reports. The County Auditor or designated employee will prepare the P&E report using the County's financial records and supporting documentation. Prior to submission, a separate individual with appropriate knowledge and oversight responsibilities will independently review the report for completeness and accuracy. The review will include verification of reported expenditures to the County's accounting records, review of projects and activities reported, and verification of applicable contracts and other required information. The reviewer will document completion of the review and any discrepancies identified will be resolved prior to submission. The County will also maintain a reporting calendar identifying applicable reporting periods and submission deadlines. The calendar will be monitored to ensure reports are prepared, reviewed, and submitted timely. Supporting documentation for the preparation and review of each report will be retained with the County's financial records. Employees responsible for federal grant reporting will receive additional training regarding the applicable Treasury reporting requirements and the County's established procedures. These procedures will provide an additional level of oversight and segregation of duties and are intended to ensure that future SLFRF reports are complete, accurate, properly reviewed, and submitted by the applicable deadlines. Anticipated Completion Date: December 31, 2026

FINDING 2025-003 Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds – Reporting Audit Findings: Material Weakness, Non-Compliance Contact Person Responsible for Corrective Action: Martha L. Arnold-Turner Contact Phone Number and Email Address: 812-275-3111, mturner@lawrencecounty.in.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The county corrective action plan will be designed to implement a proper system of internal controls that will ensure compliance with the Reporting requirements of the grant and has already started with the report that was due in 2026. - The County will continue to implement internal controls that will prevent or correct noncompliance. For all Federal grants that require reports, after one person who understands the program and its requirements prepares the report, another person will continue to review the report for accuracy and completeness prior to it being submitted. Anticipated Completion Date: 12/31/2026

FINDING 2025-006 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Catherine MM Lane Contact Phone Number and Email Address: 812-677-3959 clane@vincennes.in.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: All reports will be prepared by the clerk’s office and will be reviewed for errors and omissions by someone who is knowledgeable about the reporting requirements prior to submission. Anticipated Completion Date: The corrective action plan will be implemented by December 31, 2026.