Corrective Action Plans

Finding No. 2026-001: During testing of allowable costs for Major Program 93.912, one instance was identified in which payroll benefit costs charged to the federal award were overstated by $383 due to an error in the calculation of payroll-related benefits associated with an individual employee. As a result of the exception identified during audit testing, we performed additional procedures over the affected population and determined that an incorrect payroll base had been used in calculating benefit allocations charged to federal awards for certain employees for which payroll and benefits are allocated to federal programs. We identified unsupported payroll benefit costs and indirect costs charged to the following federal programs: Program 93.912-$15,046; Program 93.387-$1,901; and Program 93.889-$29,718, for total questioned costs of $46,665. We intend to return these funds to the grantor agencies. Accordingly, the $46,665 of unsupported costs was removed from expenditures reported on the Schedule of Expenditures of Federal Awards, and no known questioned costs are reported in the Schedule of Findings and Questioned Costs. Corrective Actions Planned: A simplified report has been identified that will reduce the risk of calculation errors. This report will be used for all future calculations related to payroll-related benefits for grants. Responsible Party: Karla Dillow, Assistant Director of Accounting Target Completion Date: March 31, 2027

FINDING 2025-001 Reporting – Late Submission of SF-425 Federal Program / ALN: 93.092 / Personal Responsibility Education Innovative Strategies (PREIS) Type of Finding: Significant Deficiency in Internal Control over Compliance (Reporting) Questioned Costs: N/A Repeat Finding: No Corrective Action Planned: Management will implement the following corrective actions: establish and maintain a formal federal grant reporting calendar that identifies all SF-425 due dates for Assistance Listing Number 93.092 and other federal awards; assign primary responsibility for the preparation and submission of SF-425 reports to designated grants personnel, with mandatory review and approval by the Fiscal Manager prior to submission; and incorporate SF-425 reporting deadlines into the monthly grant compliance checklist, with documentation of actual submission dates. Official Responsible for Corrective Action: Latisha Kenon, Fiscal Manager Anticipated Completion Date: The planned completion date is December 31, 2026. Views of Responsible Officials: Management agrees with the finding. The late submissions of the required SF-425 Federal Financial Reports resulted from insufficient awareness of the specific reporting deadlines. Management will implement a formal federal grant reporting calendar and assign monitoring responsibility to designated grants compliance personnel. The corrective actions will be fully implemented by the Organization and will be monitored on an ongoing basis.

Condition During testing of cash disbursements, the audit team was unable to locate adequate supporting documentation for selected transactions sufficient to determine whether the costs charged were allowable and the activities were allowed under the applicable federal award(s). Documentation such as invoices, receipts, contracts, approvals, or evidence linking the expenditure to an allowable activity could not be located or provided by the Institute. Criteria Per 2 CFR § 200.403, costs charged to a federal award must be necessary, reasonable, and adequately documented. Per 2 CFR § 200.302 and § 200.334, non-federal entities must maintain financial records, including source documentation (e.g., invoices, receipts, canceled checks, time and effort records) that support the allowability, allocability, and reasonableness of costs charged to federal awards, and these records must be retained and readily accessible for a minimum of three years. Additionally, 2 CFR § 200.404 and § 200.405 require that costs be allocable and consistently applied to allowable program activities. Cause The Institute's recordkeeping and document retention practices did not ensure that supporting documentation for cash disbursements was consistently maintained, organized, or readily retrievable. This may be attributable to insufficient internal controls over document retention, lack of a centralized filing/records system, or turnover in staff responsible for maintaining disbursement records. Effect Without adequate supporting documentation, the Institute cannot demonstrate that disbursed funds were used for allowable costs and allowed activities in accordance with the terms of the federal award(s). This exposes the Institute to the risk of questioned costs, disallowed expenditures, required repayment to the funding agency, and potential findings of noncompliance in future audits. It also limits the Institute's ability to demonstrate accountability and stewardship over federal funds. Recommendation We recommend that the Institute strengthen internal controls over cash disbursements to ensure supporting documentation (invoices, receipts, approvals, and evidence of allowable activity) is obtained and retained for every transaction prior to disbursement. The Institute should implement a centralized, organized recordkeeping system (physical or electronic) for disbursement documentation, with clear responsibility assigned for maintenance and retrieval. The Institute should also provide training to relevant staff on documentation retention requirements under 2 CFR Part 200. Management’s Response Management agrees with the finding and recommendation. The Institute recognizes that complete and readily retrievable supporting documentation is necessary to demonstrate the allowability, allocability, and reasonableness of costs charged to all awards. Management will strengthen its cash disbursement and record-retention procedures to ensure invoices, receipts, approvals, contracts, and other applicable supporting documentation are maintained for each transaction. Action Taken The Institute implemented a centralized electronic recordkeeping process for cash disbursement documentation and assigned responsibility for maintaining and retrieving supporting records. Documentation supporting the expenditure and applicable approvals are retained with the transaction records. Relevant staff have been instructed on documentation and record-retention requirements applicable to federal awards. Management will hold an annual training at the beginning of the new fiscal year available to all ERI employees.

Finding Reference This corrective action plan relates to audit finding 2025 001 as reported in the schedule of findings and questioned costs. Contact Persons Dwayne Shaw, Executive Director, and Michelle Wright, Office Manager , are responsible for implementing and monitoring the corrective actions, maintaining related policies and procedures, and reporting status to those charged with governance. (207) 483-4336 Management’s Response / Concurrence Management agrees with the finding. The organization acknowledges that it does not currently have written policies and procedures addressing certain required Uniform Guidance compliance areas. Planned Corrective Action Management will develop, approve, and implement written policies and procedures designed to comply with applicable Uniform Guidance requirements, including policies over allowable costs/cost principles, cash management, and procurement, including suspension and debarment. Management will also communicate the new policies to relevant personnel and provide training as needed to support consistent implementation. Anticipated Completion Dates Management will finalize and implement the corrective action plan on or before September 30, 2026.

The findings from the December 31, 2025, schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the number assigned in the schedule. FINDINGS - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Finding 2025-001 - Cash Management - U.S. Department of Agriculture ({Assistance Listing Number 10.557, WIC Special Supplemental Nutrition Program for Women, Infants, and Children} Passed Through New York State Department of Health, Contract Number C38291GG - (Significant Deficiency) SJGNFICANT DEFICIENCY During our audit, we noted that there is no evidence of review of WIC vouchers submitted for payments. Recommendation We recommend that the Center implement a policy that requires all WIC voucher and supporting records to be reviewed and that such review be documented. Action Taken WIC vouchers and supporting documentation were reviewed and approved in accordance with BSFHC's established policy. However, the reviews were not documented, resulting in insufficient evidence to demonstrate that the required review had been performed. Going forward, Management will ensure that all WIC vouchers and supporting documentation are reviewed and that the review is documented through the reviewer's signature or initials. Management will monitor compliance with this requirement to ensure that documentation ofthe review is consistently maintained.

FA 2025-004 Strengthen Controls over Financial Reporting Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: Assistance Listing Number and Title: Federal Award Number: Questioned Costs: Description: Reporting Material Weakness Material Noncompliance U.S. Department of Education Georgia Department of Education COVID-19- 84.425U -American Rescue Plan Elementary and Secondary School Emergency Relief Fund S425U210012 (Year: 2024) $56,118.84 The School District did not file accurate completion reports for the Elementary and Secondary School Emergency Relief Fund program. Corrective Action Plans: • The CFO will check all federal Grants as a whole by running the general ledger and taking the difference of expenditures to revenue. The CFO will ensure the completion report is done with the final general ledger of the fiscal year. Estimated Completion Date: December 18, 2026 Contact Person: Torrence H. Freeman 111, CFO Telephone: 706-665-8577 Email: tfreeman@talbot.k12.ga.us

FA 2025-003 Strengthen Controls over Cash Management Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: Assistance Listing Number and Title: Federal Award Number: Description: Cash Management Material Weakness Material Noncompliance U.S. Department of Education Georgia Department of Education COVID-19 - 84.425U -American Rescue Plan Elementary and Secondary School Emergency Relief Fund S425U210012 (Year: 2024) The School District made cash drawdowns in excess of the immediate cash needs of the Elementary and Secondary School Emergency Relief Fund program. Corrective Action Plans: • The CFO will check all federal grants as a whole by running the general ledger and taking the difference of expenditures to revenue received to ensure that any changes to expenditures in prior months are accurately reflected in the draw down. If it is found that there is an excess of cash, funds will be immediately returned to GaDOE. Estimated Completion Date: December 18, 2026 Contact Person: Torrence H. Freeman 111, CFO Telephone: 706-665-8577 Email: tfreeman@talbot.k12.ga.us

Finding 2025-002: Significant Deficiency in Financial Management System Affecting Federal Award Tracking and SEFA Preparation Recommendations: We recommend that management: 1. Implement a chart of accounts or coding structure that identifies funding source at the transaction level. 2. 3. 4. Establish procedures to track expenditures by federal program throughout the year. Perform periodic reconciliations of grant activity to the general ledger. Develop and document a formal process for preparation and review of the Schedule of Expenditures of Federal Awards. Corrective Action Plan: Management Response already Completed prior to June 22nd, 2026: 1. A coding structure already exists in the ‘Grant’ field within SAGE accounting suite to identify what Grant source funding and/or expenses are applicable for. This is being enhanced to also include a “-…” identifying whether the grant is “- Direct Federal Funding”, “- Federal Passthrough Funding”, “- WA State Funding”, or “- Private Funding” for each grant. This will then be exported and dumped into a data table with mapping to sum total funding by general funding type source. 2. This is and has been in existence at FISH for a significant period of time. The Finance Director will be including a monthly review in the document ‘End of Month Finance Checklist’ to ensure that an Income Statement by Grant Type is reviewed monthly, in addition to the Detailed General Ledger review that also occurs monthly. Procedures to ensure that Federal funds are correctly identified by the correct Grant Type identifier as listed in #1 will be created so that this process becomes standardized moving forward. 3. See #2 above related to ‘End of Month Finance Checklist’ task. Management Response to be Completed: 1. The Finance Director, in coordination with the Executive Director, will develop and document a formal process for preparation and review of the Schedule of Expenditures of Federal Awards. Items 1-3 above will ensure that data is accurately tracked, while the procedures and processes created in this item will ensure that dates and reporting requirements are met ahead of time and in accordance with required standards. Anticipated Completion Date: • Full and complete implementation of all Corrective Action Plan items to be in place by 10/31/2026 and all relevant completed work for FY26-27 to be reviewed for adherence to all applicable policies, procedures, and/or standard practices as compared to Corrective Action Plan requirements and standards with any unavoidable, previously completed items of non-adherence being noted and brought to the attention of the (i) Executive Director and Finance Committee and/or (ii) the Board of Directors based upon scale of item of non-adherence. Responsible Individuals: • Work to be completed by Finance Office Manager with real-time and/or frequent periodical oversight by Finance Director and/or completed directly by Finance Director. • Summary of work completed and/or summary status reports to be reviewed and/or approved by Executive Director and/or Finance Committee based upon importance and/or applicability of work. • Financial Statements, Outstanding Audit Responses, and/or any outstanding items of note or organization-level scale to be reviewed by Board of Directors on at least a monthly basis.

Finding 2025-001 Allowable Cost Principles and Activities Allowed or Unallowed Significant Deficiency in Internal Control Over Compliance Assistance Listing Number 21.029 While Wabash currently maintains informal procedures for coding and reviewing invoices and payroll records, we recognize the need for a formalized, written policy governing expenditures charged to federal awards. To address identified significant deficiency, Wabash implemented a comprehensive written policy as of June 30, 2026. This policy will formalized the coding, review, and reporting processes for all federal expenditures. Key improvements included: • Enhanced Internal Controls: We established a clear segregation of duties to ensure oversight and accuracy. • Timely Reporting: We refined our payroll allocation process. Previously, payroll expenditures were withheld pending budget verification, which occasionally led to reporting delays. New controls will ensure that all expenditures, including payroll, are reported within the required quarterly timeframes. • Monitoring: The Controller will oversee the development of these procedures and remain responsible for ongoing monitoring and compliance. These steps will ensure our financial practices meet federal standards and provide rigorous oversight of project funds. Contact person(s): Cheryl Gaither, Controller Justin Gephart, Chief Operating Officer

Views of Responsible Officials and Planned Corrective Action: Management acknowledges that the Federal Financial Report (FFR) was not submitted within the required 90-day timeframe, resulting in noncompliance with the reporting requirements of the grant agreement. While the organization maintained a centralized system for tracking reporting deadlines and conducted regular cross-functional coordination between Program, Finance, and Compliance teams, management recognizes that controls over monitoring and escalation were not sufficiently rigorous to ensure timely submission in all instances. This occurred during a period of elevated staffing transition, which contributed to a lapse in the consistent execution and monitoring of reporting timelines; however, management recognizes that controls should be sufficiently robust to operate effectively regardless of personnel changes. Upon identification of the delay, management evaluated the underlying processes and determined that enhancements were needed to strengthen accountability, improve visibility of critical deadlines, and ensure timely followthrough. Management notes that this condition was limited to the timeliness of submission and did not impact the accuracy of the report or result in questioned costs. Management has since reinforced its reporting oversight by enhancing coordination across responsible teams, clarifying ownership of deliverables, and strengthening internal monitoring practices. This includes implementing more structured tracking of key reporting deadlines, reinforcing expectations around advance preparation and review, and increasing senior-level oversight to ensure that upcoming deadlines are proactively managed and met. In addition, management has emphasized timely escalation of potential delays to ensure corrective action can be taken prior to due dates. Management believes these enhancements address the control gaps identified and significant reduce the likelihood of recurrence. Reporting timelines are now more actively monitored as part of ongoing financial and compliance operations, and management will continue to assess the effectiveness of these processes to ensure adherence to grant requirements and compliance with applicable regulations, including 2 CFR Part 200.

2025-002 a. Name of Contact Person Responsible for Corrective Action: LaKenya Thomas– Executive Director of Finance & Business Affairs b. Corrective Action Planned: We will implement policies or procedures to establish an internal control system that will ensure strong financial accountability and to ensure compliance with all state and federal grant requirements. c. Anticipated Completion Date: Immediately.

The Organization will review guidance and create missing policies

Failure to Identify All Federal Awards and Prepare a Complete Schedule of Expenditures of Federal Awards (SEFA) Finding Type: Material Weakness in Internal Control Over Compliance Corrective Action: The Organization will establish formal procedures for identifying, tracking, and reporting all federal awards. Actions include: 1. Creation and maintenance of a centralized Federal Grant Register containing: o Assistance Listing Number o Federal agency o Pass-through entity o Award number o Award period o Award amount o Reporting requirements 2. Development of written SEFA preparation procedures. 3. Annual reconciliation of federal expenditures to the general ledger prior to audit commencement. 4. Annual review of all grant agreements to identify federal funding sources and pass-through awards. 5. Training for finance and program staff on Uniform Guidance requirements and federal award identification. 6. CFO review and approval of the SEFA before submission to auditors. Responsible Person: CFO and Executive Director Implementation Date: September 30, 2026 Expected Outcome: All federal awards will be accurately identified and reported, and a complete and accurate SEFA will be prepared prior to each annual audit.

Commingling of Federal Award Funds in the General Ledger Finding Type: Material Weakness in Internal Control Over Compliance Corrective Action: The Organization will redesign its accounting structure to separately identify federal grant activity. Specific actions include: 1. Establishing grant-specific codes within the chart of accounts. 2. Tracking revenues and expenditures by: o Federal program o Funding source o Assistance Listing Number o Grant period 3. Requiring transaction-level coding for all federal grant activity.4. Generating reimbursement requests and financial reports directly from grant-specific accounting records. 5. Implementing written grant accounting policies and procedures. 6. Providing grant accounting and Uniform Guidance training to accounting and program personnel. Responsible Person: CFO Implementation Date: September 30, 2026 Expected Outcome: Federal expenditures will be separately tracked and readily identifiable, improving compliance with Uniform Guidance requirements and supporting accurate reporting and monitoring of grant funds.

Description: During our testing of payments charged to the federal major program, we noted that employee timesheets lacked evidence of review and approval. Certain employees charged to the grant did not prepare timesheets and a separate tracking system was used. Federal regulations require that expenditures charged to Federal awards be properly reviewed, approved, and documented to ensure allowability and compliance with grant terms. Recommendation: Review the requirements of CFR 200.430 and ensure that current processes, whether digital or hard-copy driven, are consistent with the requirements of the Uniform Guidance. In addition, management should consider adding additional staff to its accounting and/or grants management team. Responsible Contact: Laura McQuay, Vice President & Chief Financial Officer Corrective Action Planned: The Organization has made significant progress in strengthening its timekeeping processes, as described in finding number 2025-002. This program ended in March 2025, and therefore management was unable to complete full remediation of the processes before completion of the grant. Anticipated Completion Date: December 31, 2027

We will strengthen our controls around reporting of expenses on consolidated SEFA report for our subsidiary and related organizations. We will exclude expenses that exceed the total budget and recommend posting adjustments in the books so that these are not included in grant expenses.

2025-004 – Lack of Written Policies and Procedures Auditor Description of Condition and Effect. Although the Organization has processes in place to cover these areas, and drafts of formal written policies covering the above items that address all of the area required by the Uniform Guidance have been developed, these policies have not yet been formally approved and adopted by the Organization. As a result of this condition, the Organization did not fully comply with the Uniform Guidance applicable to the above noted grants. Auditor Recommendation. We recommend that the Organization review and approve the draft policies as soon as practical, but no later than the end of fiscal year 2026. Corrective Action. The Organization has prepared a policies and procedures manual for the federal grant programs, which will be approved by the Board of Directors before the end of fiscal year 2026. Responsible Person. Rob Rafson, Executive Director Anticipated Completion Date: December 2026

We agree with the auditor's comments. Prior to transferring financial responsibilities back to Essex County Public Schools Administration effective July 1, 2026, a process was put into place for all staff to have current and fully executed contracts stating their pay rate, FLSA status, expected length of contract (with number of workdays), and associated benefits. A process was also established to utilize an automated or manual timekeeping report to reflect all hours worked and approved by the supervisor prior to submission for payment. All records should be matched and retained to support payroll payments.

Reporting California Governor’s Office of Emergency Services Based on CSA's Federal Compliance Audit Report for the Fiscal Year Ended June 30, 2024 - Finding 2024-020, Cal OES revised its FFATA reporting procedures and has taken several actions to strengthen internal controls, resolve discrepancies among reporting systems, and ensure staff are fully trained to maintain compliance with all FFATA reporting requirements. In March of 2025, Cal OES developed the Financial Administrative Branch (FAB) FFATA SOP (Attachment #1) for FFATA reporting which outlines steps for collecting subrecipient data, preparing reports, and submitting reports within the required time frames. In addition, Cal OES enhanced its existing FFATA reporting procedures using a software platform to provide accurate data reports for federally funded grant projects. These reports are then used to ensure accurate reporting and timely updates to existing FFATA records. To ensure clear assignment of accountability, Cal OES FAB analysts are responsible for completing and submitting FFATA reporting accurately, with all required fields completed, and obtaining review and approval from their respective peer reviewer analysts and managers to verify accuracy and completeness. Furthermore, in June of 2025, Cal OES FAB staff were provided with a comprehensive FFATA training course to ensure staff understand the process and reporting requirements for FFATA (Attachment #2). Cal OES continues to provide training for staff responsible for submitting FFATA reports during onboarding and on an as-needed basis. Because the revised FFATA reporting procedures were not fully implemented by the close of Fiscal Year 2024-2025, Cal OES was not able to capture all projects concluding the reporting cycle. Moreover, the procedures have been fully implemented and in effect since the start of Fiscal Year 2025-2026. Estimated Implementation Date: Implemented Contact: - Heidi Palchik, Chief, Recovery Financial Administration Branch lnteragency, Recovery Coordination Section

Reporting California Department of Social Services CDSS will implement improved procedures and consider if a grant management solution would be feasible and necessary. CDSS has already begun establishing a process that determines and documents whether funding actions are reportable subrecipients or contractors. CDSS has also begun establishing a field within the CDSS accounting system that identifies subrecipients at the contract level so this data is automatically included when extracted for FFATA reporting, which will ensure reports are submitted accurately and timely. CDSS is also developing a Federal Reporting Dashboard to track all grants with FFATA reporting requirements, including due dates and completion status. Additionally, CDSS will designate a primary point and a backup person within the Federal Reporting Section to monitor all FFATA reporting deadlines. This designated staff member will issue 45 days advance notifications to the grant owner and reviewing manager, set calendar reminders for grant owners, and provide regular status updates to Accounting Management. To strengthen timely compliance, these reminders will also instruct grant owners to complete the FFATA submission 10 days before the federal deadline, ensuring sufficient time to resolve any errors that may occur during the upload process. Estimated Implementation Date: November 2026 Contact: - Rosali Bautista, Chief, Accounting and Reporting Bureau, Accounting and Fiscal Systems Branch, Finance and Accounting Division

Reporting California Department of Social Services CDSS agrees with this finding and has already begun developing appropriate procedures that will support this recommendation, using the CCDF program area as a model. CDSS will implement improved procedures and consider if a grant management solution would be feasible and necessary. CDSS has already begun establishing a process that determines and documents whether funding actions are reportable subrecipients or contractors. CDSS has also begun establishing a field within the CDSS accounting system that identifies subrecipients at the contract level so this data is automatically included when extracted for FFATA reporting, which will ensure reports are submitted accurately and timely. CDSS is also developing a Federal Reporting Dashboard to track all grants with FFATA reporting requirements, including due dates and completion status. Additionally, CDSS will designate a primary point and a backup person within the Federal Reporting Section to monitor all FFATA reporting deadlines. This designated staff member will issue 45 days advance notifications to the grant owner and reviewing manager, set calendar reminders for grant owners, and provide regular status updates to Accounting Management. To strengthen timely compliance, these reminders will also instruct grant owners to complete the FFATA submission 10 days before the federal deadline, ensuring sufficient time to resolve any errors that may occur during the upload process. Estimated Implementation Date: November 2026 Contact: - Jeff Fowler, Child Care Administration Bureau Chief Central Operations Branch, Child Care and Development Division - Rosali Bautista, Chief, Accounting and Reporting Bureau, Accounting and Fiscal Systems Branch, Finance and Accounting Division

Reporting California Department of Social Services CDSS does not agree with this finding and its characterization as an ACF-696 reporting inaccuracy. The discrepancy between the ACF-696 and the general ledger is primarily due to timing differences. The ACF-696 was due on July 30, 2025, and relies on preliminary figures that were prepared before final cost allocations and accruals were posted. In contrast, the general ledger is based on the final expenditure data, including all adjustments, and finalized in September 2025. Any discrepancies or adjustments from the June 2025 quarter were reported in the following quarter. The Administration for Children and Families has confirmed with CDSS Accounting that the current practice of reflecting these adjustments in the subsequent quarter for federal reporting is acceptable. CDSS began performing the reconciliation of the ACF-696 and the general ledger following the close of FY 2024–25. However, completion of this process was delayed due to an unprecedented volume of ongoing audit activities and the significant demands associated with supporting the Department, the California Health and Human Services Agency, the continual flux of federal funding changes, and federal shutdown preparedness drills. CDSS submitted a Budget Change Proposal in response to the previous audit finding 2024-015 to complete this reconciliation between ACF-696 and the general ledger. This request has been approved, and we are in the process of hiring for this position. Once this position is filled, responsibility for the reconciliation activities will be transferred to the newly assigned staff member to ensure consistent oversight, timely completion, and ongoing maintenance of the reconciliation process. Estimated Implementation Date: September 2026 Contact: - Rosali Bautista, Chief, Accounting and Reporting Bureau, Accounting and Fiscal Systems Branch, Finance and Accounting Division

Reporting California Department of Social Services CDSS does not agree with this finding that the FFATA reporting deadline was not met for the subaward reporting for all 58 counties for the Foster Care grant. The FFY 2025 FFATA report was originally submitted on November 27, 2024, which met the federal submission deadline of November 30, 2024. During this initial submission, however, data lines for two counties failed to upload into the legacy FSRS.gov system and required additional research. The corrected data was subsequently submitted on December 10, 2024. Since that time, FSRS.gov has migrated to SAM.gov, and the new system only displays the most recent submission date as the official record. It appears that SAM.gov does not retain or display the historical log of submissions FSRS.gov. As a result, the system reflects only the December 10 submission date, even though the original, timely submission occurred on November 27, 2024. CDSS is developing a Federal Reporting Dashboard to track all grants with FFATA reporting requirements, including due dates and completion status. Additionally, CDSS will designate a primary point and a backup person within the Federal Reporting Section to monitor all FFATA reporting deadlines. This designated staff member will issue 45 days advance notifications to the grant owner and reviewing manager, set calendar reminders for grant owners, and provide regular status updates to Accounting Management. To strengthen timely compliance, these reminders will also instruct grant owners to complete the FFATA submission 10 days before the federal deadline, ensuring sufficient time to resolve any errors that may occur during the upload process. Estimated Implementation Date: November 2026 Contact: - Rosali Bautista, Chief, Accounting and Reporting Bureau, Accounting and Fiscal Systems Branch, Finance and Accounting Division

Subrecipient Monitoring California Department of Public Health The California Department of Public Health (CDPH) agrees with this finding. CDPH has not yet formalized procedures governing the issuance of Direct Allocation Letters. CDPH is currently developing a comprehensive process in collaboration with the Program Support Division and the Office of Legal Services to ensure compliance with federal audit requirements and state contracting guidelines. The revised procedures will require each Direct Allocation Letter to include the applicable Assistance Listing Number (ALN) and Federal Award Identification Number (FAIN). CDPH is prioritizing this effort and expects to publish written procedures that establish consistent practices and provide clear guidance to ensure compliance with all applicable requirements. Estimated Implementation Date: December 2026 Contact: - Louise Karsten, Emergency Funding Coordination Branch Manager, Center for Preparedness and Response

Reporting California Department of Aging California Department of Aging (CDA) partially agrees with this finding as this was a prior audit finding that was communicated to CDA. CDA has implemented corrective actions in response to that finding, but the actions were implemented during the scope of this current audit. The cause of the lack of FFATA reporting was due to a lack of staffing for the reporting responsibilities. CDA has already created processes and procedures and is continuing to update them as more information is available or roles and responsibilities change within the Budget Team. CDA hired an employee in April 2024 to fulfill the FFATA duties and CDA has been able to keep current with FFATA reporting. In addition, CDA has recently updated the FFATA procedures to include a Review and Approval process and to include a process for identifying when FFATA reporting needs to be completed. This process involves multiple members of the Budget Team depending upon the program. Since this has been a recent update to the procedures, this will not be in effect if there is an audit next year. In addition, the analyst assigned to FFATA reporting is continually monitoring the Federal website (SAM.gov) for any additional training or guidance. Please note that FFATA reporting has been converted to SAM.gov and the FSRS website mentioned in the Reporting Requirements is no longer valid. Any links for training that were on the FRSR website are no longer valid and can’t be viewed. Estimated Implementation Date: Procedures and processes updated July 2026. Contact: - Kim Elliott, Chief Budget Officer