Corrective Action Plans

Name: CABUN Rural Health Services, Inc. Contact Name: Judy Southall, CFO Contact Phone Number: 870-798-4064 Auditor/Audit Firm: Forvis Mazars, LLP Audit Period: March 31, 2026 Federal Program: Health Center Cluster Anticipated Completion Date: October 2026 Response: The Organization concurs with the finding, and management will implement formal written procedures and internal controls governing Federal cash drawdowns. The procedures will require Federal funds to be drawn only for actual, immediate cash needs and as close as administratively feasible to the related disbursements. Supporting documentation will be maintained to identify expenditures supporting the draw. The expenditures will be reviewed to verify that they are allowable, properly documented, incurred within the applicable Federal award period, and recorded in the appropriate accounting records. Federal draw requests will be reconciled to the underlying expenditures before submission. The individual responsible for preparing the draw will provide the supporting documentation and reconciliation for review and approval before the draw is submitted.

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 Number: 2025-044 Finding Name: Failure to Adequately Document Payment of Medical Expenditures Finding Condition(s): The Illinois Department of Healthcare and Family Services (DHFS) could not provide sufficient supporting documentation to evidence that certain expenditures claimed under the Children’s Health Insurance Program (CHIP) and the Medicaid Cluster program were disbursed (paid) during the year ended June 30, 2025. Additionally, the auditors noted that the DHFS has not established internal controls at a sufficient level of precision to ensure evidence supporting amounts claimed under CHIP and the Medicaid Cluster program were paid by the IOC during the fiscal year. Name of Contact Person(s) and Title: Michael Erickson, Deputy Finance Administrator - Illinois Department of Healthcare and Family Services Corrective Action(s): The DHFS will complete the following corrective actions: 1. Review and adjust internal control procedures surrounding the financial reporting process to address timing issues to properly reflect the transactions on the cash-basis Schedule of Expenditures of Federal Awards (SEFA). 2. Explore necessary improvements to the level of detail associated with transactions presented for federal claiming by other state agencies. Proposed Completion Date: September 30, 2027

Finding Number: 2025-029 Finding Name: Failure to Retain Detailed Transactions for Summer EBT Program Beneficiary Payments Finding Condition(s): The Illinois Department of Human Services (IDHS) did not retain transaction-level detail for beneficiary payments under the Summer Electronic Benefits Transfer Program for Children (Summer EBT) program. Name of Contact Person(s): • Elizabeth Lusk, Social Service Program Planner – Illinois Department of Human Services, Family and Community Services • Kasey Reagan, Division Director – Illinois Department of Human Services, Family and Community Services Corrective Action(s): The IDHS and its partners maintain detailed records of beneficiaries and the data will be made available in future inquiries. Specific corrective actions that the IDHS will complete to ensure the data is available for future audits include the following: • The IDHS has reached out to its partners to prepare for potential information requests for fiscal year 2025 and future fiscal year inquiries. (Completed as of 09/14/26) • The IDHS’ SNAP staff and the IDHS’ Federal Reporting staff will meet to discuss the Summer EBT process and the data used in reconciliation. (Completed as of 09/21/26) • The SNAP program area will draft procedures related to how the program is funded initially and throughout each grant year. (Proposed Completion Date: 12/01/26) • The SNAP staff will create a data reconciliation spreadsheet and save the document on a SharePoint site for shared use with Federal Reporting staff. (Proposed Completion Date: 12/01/26) • The Federal Reporting staff will add claiming data to the data reconciliation spreadsheet. (Proposed Completion Date: 12/01/26) • The Federal Reporting staff will document the process used to sample data from the reconciliation spreadsheet and compare it to the detail on the Fidelity Information Services (FIS) transaction file. Proposed Completion Date: December 1, 2026

2025-006 Habitat Conservation – Assistance Lising #11.463 - Material Weakness in Internal Control over Compliance – Financial Reporting Recommendation: We recommend the Organization implement formal internal controls over the Federal financial reporting process, including documented supervisory review and approval of all Federal Financial Reports prior to submission. Federal Financial Reports should be prepared using information maintained within the accounting system and reconciled to the general ledger before submission to ensure the reports are complete, accurate, and fully supported. Additionally, management should develop and implement a written Federal financial reporting policy that establishes procedures for preparing, reviewing, approving, reconciling, documenting, and retaining Federal Financial Reports in accordance with the Uniform Guidance. Explanation of disagreement with audit findings: there is no disagreement with the audit findings. Action taken in response to finding: JCWC is in the process of implementing updated financial policies and procedures to strengthen internal controls over Federal financial reporting. The revised Fiscal Policy Manual establishes a specific Federal Financial Reporting Process in Section 7.4.1 that defines responsibilities and required controls for preparing, verifying, reconciling, reviewing, approving, submitting, and retaining Federal Financial Reports. The new process requires: 1. Prepare and Verify The Finance & Grants Manager works with Jitasa to prepare Federal Financial Reports using information maintained in QuickBooks and supporting documentation and verifies that reported expenditures are allowable, properly allocated, within the approved budget, and adequately supported. 2. Reconcile and Review Jitasa reconciles reported expenditures to the applicable QuickBooks general ledger accounts and supporting documentation. Any discrepancies must be investigated, corrected, and documented before submission. 3. Review and Approve The Executive Director reviews the Federal Financial Report and supporting documentation for accuracy, completeness, and compliance with Federal award requirements and provides documented approval through an approved electronic signature platform prior to submission. 4. Submit and Retain Following approval, the Finance & Grants Manager submits the report by the applicable deadline and retains the submitted report, supporting documentation, reconciliation, and documented approval in accordance with Section 10 and applicable Federal requirements. Action Plan: JCWC will finalize and present the Fiscal Policy Manual to the Board for formal adoption and will continue implementing the Federal Financial Reporting Process in the interim. Management will use the procedures established in Section 7.4.1 for all applicable Federal Financial Reports and will monitor compliance with the required preparation, reconciliation, review, approval, submission, and record-retention procedures. Any discrepancies or gaps identified through the reporting process will be addressed and documented. Name(s) of the contact people responsible for correction action: Jennifer Hamilton, Executive Director Sean Connolly, Finance & Grants Manager Jitasa Plan completion date for corrective action plan: December 31, 2026 for implementation and monitoring ongoing.

2025-004 Habitat Conservation – Assistance Lising #11.463 - Material Weakness in Internal Control over Compliance – Cash Management Recommendation: We recommend the Organization implement formal internal controls over the cash management process, including documented supervisory review and approval of all cash draw requests prior to submission. Cash draw requests should be prepared and supported using information maintained within the accounting system and reconciled to the general ledger to ensure that only allowable, properly recorded Federal expenditures are included in reimbursement requests. Additionally, management should develop and implement a written cash management policy that establishes procedures for preparing, reviewing, approving, reconciling, documenting, and retaining cash draw records in accordance with the Uniform Guidance. Explanation of disagreement with audit findings: there is no disagreement with the audit findings. Action taken in response to finding: JCWC is in the process of implementing updated financial policies and procedures to strengthen internal controls over cash management and Federal reimbursement requests. The new Fiscal Policy Manual establishes a specific process for preparing, verifying, reconciling, reviewing, approving, submitting, and retaining Federal reimbursement and cash draw requests. For example, Section 7.2.1, Reimbursement Request Process, requires: 1. Prepare and Verify The Finance & Grants Manager works with Program Staff and Jitasa to identify eligible expenditures and prepares the reimbursement request, ensuring costs are allowable, appropriately allocated, within the approved budget, and supported by documentation. The request shall be prepared using financial information maintained in QuickBooks. 2. Review and Reconcile The appropriate Director reviews the request and supporting documentation for accuracy, allowability, and budget compliance. Jitasa reconciles the requested amount to the applicable QuickBooks general ledger accounts and supporting documentation. Any discrepancy shall be resolved and documented before submission. 3. Approve and Submit The appropriate Director provides documented approval through an approved electronic signature platform. By approving the request, the Director confirms that the request has been reviewed for accuracy, allowable costs, appropriate grant allocation, and compliance with the applicable grant budget and funding requirements. Once approved, the Finance & Grants Manager submits the request to the funder or partner with all required supporting documentation. 4. Retain Records The reimbursement request, supporting documentation, electronic approval, and submitted request are retained in the designated grant records in accordance with Section 10 and applicable funder requirements. The policy therefore establishes a documented supervisory approval and reconciliation process before Federal reimbursement or cash draw requests are submitted. Action Plan: JCWC will finalize and present the Fiscal Policy Manual to the Board for formal adoption and will continue implementing the procedures in the interim. The Finance & Grants Manager will work with program staff and Jitasa to prepare and verify Federal reimbursement and cash draw requests. Requests will be reconciled to the QuickBooks general ledger and supporting documentation, with any discrepancies resolved and documented before submission. The appropriate Director will review and approve each Federal reimbursement or cash draw request prior to submission. JCWC will retain the request, supporting documentation, reconciliation, and approval in accordance with its records retention requirements and applicable Federal requirements. Following Board The appropriate Director will review and approve each Federal reimbursement or cash draw request prior to submission. JCWC will retain the request, supporting documentation, reconciliation, and approval in accordance with its records retention requirements and applicable Federal requirements. Following Board

2025-003 Habitat Conservation – Assistance Lising #11.463 - Material Weakness in Internal Control over Compliance and Noncompliance – Allowable Costs Recommendation: We recommend the Organization discontinue reliance on external workbooks as the primary record of Federal expenditures and record payroll allocations directly within the accounting system. Management should implement procedures to reconcile payroll expenditures charged to Federal awards to the general ledger and ensure that payroll allocations are supported by approved timesheets or equivalent documentation. Additionally, management should require and document supervisory review and approval of employee timesheets to strengthen internal controls over payroll costs charged to Federal awards. Explanation of disagreement with audit findings: there is no disagreement with the audit findings. Action taken in response to finding: In January 2026, JCWC implemented a new payroll and financial management process to strengthen the tracking, allocation, and documentation of payroll costs charged to Federal awards. Under the new process, Jitasa manages JCWC's payroll processing and payroll accounting, with QuickBooks serving as the organization's official accounting ledger. Employee time is allocated to the appropriate grant, contract, class, or organizational activity using approved timesheets. This process no longer relies on an external workbook as the primary accounting record for Federal payroll expenditures. JCWC also implemented a documented supervisory review process for payroll. Employee timesheets are reviewed for accuracy, completeness, and appropriate project allocations as part of the payroll process. Following preparation of payroll, payroll journals are reviewed and approved through DocuSign, providing a documented electronic approval trail prior to payroll processing. The Fiscal Policy Manual formalizes these procedures in Section 5.4, Payroll Authorization and Internal Controls. The policy requires employees to submit timesheets, requires management review of employee time allocations, requires payroll costs charged to grants to be supported by contemporaneous time records, and requires payroll registers to be reviewed after each payroll cycle. Payroll records are retained for a minimum of seven years. Action Plan: JCWC will continue the payroll and financial management procedures implemented in January 2026 and maintain these procedures through its formal fiscal policies and ongoing financial management practices. Jitasa will continue to manage payroll processing and payroll accounting, with JCWC management responsible for reviewing and approving payroll prior to processing and monitoring payroll allocations charged to Federal awards. Employee timesheets will continue to support payroll allocations to grants, contracts, classes, and organizational activities. Payroll journals will continue to be reviewed and approved through DocuSign, providing documented evidence of supervisory review and approval prior to payroll processing. The Finance & Grants Manager will work with Jitasa to ensure payroll expenditures charged to Federal awards are appropriately recorded and identifiable within the accounting system and reconciled to the general ledger. Name(s) of the contact people responsible for correction action: Jennifer Hamilton, Executive Director Noah Jenkins, Conservation Director Sean Connolly, Finance & Grants Manager Jitasa Plan completion date for corrective action plan: January 2026 for implementation of the new process; ongoing monitoring thereafter.

2025-002 Habitat Conservation – Assistance Lising #11.463 - Material Weakness in Internal Control over Compliance – Financial Management Recommendation: We recommend the Organization modify its financial management system to separately identify and track Federal award expenditures within the accounting records. Management should discontinue reliance on external workbooks as the primary record of Federal expenditures and ensure the accounting system provides complete, accurate, and auditable records sufficient to support Federal financial reporting and compliance with Uniform Guidance requirements. Explanation of disagreement with audit findings: there is no disagreement with the audit findings. Action taken in response to finding: In September 2025, Johnson Creek Watershed Council implemented a new financial management process that separately identifies and tracks Federal award expenditures within its accounting records. JCWC transitioned its bookkeeping and accounting functions to Jitasa, an external accounting firm, with QuickBooks Online serving as the official accounting ledger. Under the new process, Federal grant expenditures are coded to the appropriate grant, project, and funding source within the accounting system. Grant expenditures are reconciled to the QuickBooks general ledger and supporting documentation as part of the grant reimbursement and financial reporting process. External grant tracking worksheets may still be used as supplemental management tools for monitoring project budgets and preparing reimbursement requests; however, they are no longer relied upon as the primary record of Federal expenditures. The new Fiscal Policy Manual formalizes these practices. Section 4.4.4, Cost Allocation, requires direct costs to be charged to the specific grant, contract, or project and shared costs to be allocated using documented methodologies. Section 10.1, Financial Records, establishes QuickBooks as the official accounting ledger, with Jitasa maintaining and reconciling the organization's financial records. Action Plan: JCWC will continue the financial management process implemented in September 2025 and incorporate the process into its formal fiscal policies and procedures. The Finance & Grants Manager will work with Jitasa to ensure Federal award expenditures continue to be appropriately coded and identifiable within QuickBooks. Federal expenditures will be reviewed and reconciled to the general ledger and supporting documentation as part of ongoing grant management and reporting. The Finance & Grants Manager and Executive Director will monitor the process to ensure that external tracking worksheets remain supplemental management tools and that the official accounting records in QuickBooks remain the primary source for Federal expenditure reporting. Name(s) of the contact people responsible for correction action: Jennifer Hamilton, Executive Director Sean Connolly, Finance & Grants Manager Jitasa Mallette Faherty, Board Treasurer Plan completion date for corrective action plan: September 5, 2025 for implementation of the new process; ongoing monitoring thereafter.

Management Response: The City of Calumet City concurs with the finding. Corrective Action: The City will strengthen its internal controls over federal financial reporting by implementing procedures requiring the preparation and independent review of all Federal Financial Reports (FFRs) prior to submission. The preparer and reviewer will verify reported expenditures against the City's accounting records and supporting grant documentation. The reviewer will document approval through a dated email or written sign-off confirming that the report and supporting documentation have been reviewed. Federal Financial Reports will not be submitted until the review is completed and documented. The City will maintain centralized electronic files for federal grant reporting, including submitted reports, reconciliations, supporting documentation, and evidence of supervisory review. Procedures will also be implemented to ensure that grant reporting records, reporting deadlines, and outstanding responsibilities are transferred to designated personnel when employees leave or change positions. The Finance Department will periodically review federal grant reporting files to verify compliance with established procedures and ensure that adequate documentation of preparation and independent review is maintained. Responsible Party: Finance Department management. Anticipated Completion Date: Within 60 days of approval of the corrective action plan. Ongoing Monitoring: The Finance Department will periodically review federal grant reporting files to ensure continued compliance with established procedures.

Fiscal Year Ended: April 30, 2025 Federal Program: Assistance Listing 16.710 — Public Safety Partnership and Community Policing Grants (COPS) Questioned Costs: None Management response: The City concurs with the finding. Corrective action: During fiscal year 2026, the City identified errors in expenditure calculations reported on quarterly Federal Financial Reports (FFRs) for the FY2021 and FY2022 COPS grants. The City performed a comprehensive review of the grant activity, corrected cumulative expenditures reported on the March 31, 2026 FFR, updated supporting detail and summary schedules, and adjusted the FY2025 Schedule of Expenditures of Federal Awards (SEFA) to agree with the corrected grant expenditure records. To prevent similar errors in the future, the City will implement documented review and reconciliation procedures for all Federal Financial Reports before submission. Reported expenditures will be reconciled to the general ledger and supporting grant records, and cash reimbursement requests will be verified against actual allowable expenditures. An independent reviewer will verify the calculations, cumulative balances, supporting documentation, and reimbursement amounts. Evidence of preparation, reconciliation, and supervisory review will be retained in the City's grant files.

Identifying Number: Finding 2025-003 - Allowable Costs and Internal Controls Corrective Actions Taken or Planned: No non-payroll expenditure will be charged to a federal award without documented review and approval of the supporting invoice, grant coding, allowability, and confirmation that the expenditure has not been charged to another federal award. Supporting documentation and evidence of approval will be maintained with the grant expenditure records to provide a clear audit trail from source documentation to the general ledger and applicable federal award. Person(s) Responsible: Essence Montgomery, CFO; Abdul Hadi, Director of Financial Accounting; and Rushikesh Patel, Accounting Manager Anticipated Completion Date: October 1, 2026 Management Oversight & Next Steps: Management will communicate these control requirements to accounting personnel and responsible departments and incorporate them into current accounting policies and procedures. Documentation supporting the performance of each control will be retained as part of applicable workpapers and made available for management review and future audit testing.

The SLFRF Project and Expenditure Report periods have been filed and no further reporting is required from these specific federal grant rewards. Future grants requiring reporting will be thoroughly reviewed for reporting specifications. Although no funds were misspent or inappropriately used, the County understands the need for correct timing when reporting the grant funds held, encumbered, and expended. The County has since created a grant acceptance template, required to be used by all departments, which will be used to identify who is responsible for future grant reporting requirements. The County will work to ensure all affected departments are aware of specific reporting requirements and that those requirements are followed.

The Council will strengthen its internal controls to ensure expenditures are recorded timely and accurately in the general ledger and properly classified to the applicable award, budget category, and reporting period in accordance with 2 CFR 200.302(b)(2). The Fiscal Administrator is responsible for recording expenditures and preparing timely and accurate Federal Financial Reports (SF-425). Federal Financial Report due dates are maintained on the Council Calendar, with automatic notifications issued before each due date to the Fiscal Administrator, with a copy to the Administrative Officer. At the end of each six-month Federal Financial Reporting period, the Fiscal Administrator will review the general ledger and Profit and Loss reports to identify expenditures incurred during the reporting period and verify that expenditures are recorded in the appropriate accounting period and properly classified to the applicable award and account. The Fiscal Administrator will coordinate with appropriate program staff to resolve discrepancies and make necessary adjusting journal entries before the Federal Financial Report is finalized and submitted. Adjusting journal entries will be supported by appropriate documentation and reviewed by the appropriate program staff and/or Administrative Officer, as applicable. After a Federal Financial Report has been submitted, subsequent adjustments to the reported period will require documented review and approval and an assessment of whether a corrected Federal Financial Report is necessary. Prior to submission of each SF-425, the Fiscal Administrator will provide the Administrative Officer with the draft Federal Financial Report and supporting Profit and Loss/general ledger reports. The Administrative Officer will review and verify that reported expenditures and Federal revenue received agree with the Council's accounting records and supporting documentation. Any identified discrepancies will be resolved before submission. Documentation supporting the review, including the general ledger/Profit and Loss reports, Federal Financial Report, and applicable adjusting journal entries, will be retained in accordance with the Council's record retention requirements. These controls are intended to ensure expenditures are recorded in the proper reporting period, accurately classified, reconciled to the general ledger, and appropriately reflected in Federal Financial Reports prior to submission.

Finding 2025-04 Inadequate Documentation and Review of Reimbursement Requests - Material Weakness in Internal Control Over Compliance; Planned Corrective Action Plan: APU will implement written procedures requiring federal reimbursement and drawdown requests to be reconciled to supporting expenditure records and reviewed and approved prior to submission. Each request will retain the underlying expenditure support, reconciliation, evidence of preparer and reviewer approval, and documentation of the amount ultimately drawn. Records will be maintained in a centralized grant file and made available for audit and monitoring.; Anticipated Completion Date: July 1, 2027

Finding Number 2025-225: The Division could not provide supporting documentation for amounts reported on the Rehabilitation Services Administration (RSA) reports required under the Rehabilitation Services-Vocational Rehabilitation Grants to States. Federal Program: 84.126 - Rehabilitation Services - Vocational Rehabilitation Grants to States Related to Prior Finding: N/A Agency’s view: IDVR agrees that retention of supporting documentation aligned with the RSA-17 report submitted to RSA is necessary to ensure adequate documentation of the completed reports is created and maintained to support the submission. Corrective Action: IDVR has completed significant work to complete restatements of the RSA-17 for FFY2019-2024. These restatements have been accepted by the RSA Fiscal Unit and the reports were updated in RSAMIS by RSA after this process was completed in Spring 2026. With the restatement, RSA and IDVR have accepted the data based on an extensive third-party forensic review of IDVR’s financial records for these timeframes. IDVR is currently in the process of submitting the policy, procedures, and internal controls to RSA regarding the federal reporting of the RSA-17 required data elements. The fiscal staff have also worked extensively to ensure all future RSA-17 reports include supporting documentation that have been extracted from Luma and this process has been implemented as of February 2026. Once RSA approves the IDVR RSA-17 policy, procedures, and internal controls IDVR will adopt, train, and implement these documents as standard practice and will complete all future reports in accordance with the outlined controls and maintain the supporting documentation as outlined in the policy. Anticipated Corrective Action Date: January 30, 2027 Responsible for Corrective Action: Heidi Smith, Financial Officer Heidi.Smith@vr.idaho.gov (208) 287-6457

Finding Number 2025-210: The Department did not provide documented support to verify the accuracy of a Low Income Energy Assistance Program (LIHEAP) performance report. Federal Program: 93.568 - Low-Income Home Energy Assistance Related to Prior Finding: 2024-230 Agency’s view: The agency agrees with the finding. Corrective Action: The Department has updated a process document that will strengthen our internal controls regarding the LIHEAP performance report. The Department will compile and retain sufficient documentation to support the information included in the LIHEAP Performance report. Anticipated Corrective Action Date: The process document was updated on September 9, 2026, and will be utilized when completing the upcoming LIHEAP performance report. Responsible for Corrective Action: Lisa Johnson, Program Manager Lisa.Johnson@dhw.idaho.gov (208) 334-5739

Finding Number 2025-204: Multiple errors were identified in the amounts reported on the Rehabilitation Services Administration reports required for the Rehabilitation Services-Vocational Rehabilitation Grants to states. Federal Program: 84.126 - Rehabilitation Services - Vocational Rehabilitation Grants to States Related to Prior Finding: N/A Agency’s view: The agency agrees with the finding as we were using the cost allocation plan which changes the numbers from the ones used by the audit team and found from Luma (the state accounting system). Corrective Action: Corrective Action Objectives:  Ensure that future RSA reports are complete, accurate, consistent, and fully supported by documentation.  Establish and implement clear, standardized reporting procedures.  Retain documentation necessary to justify all reported amounts.  Identify and correct errors in previously submitted reports and communicate corrections to RSA.  Strengthen staff competencies and ensure adequate staffing levels to support proper grant reporting. Actions To Be Taken:  Form a Reporting Review Team comprising program, fiscal, and data analysts to review reports prior to submission.  Develop standardized RSA Reporting Procedures, including: o Step-by-step instructions for preparing RSA-17. o Required supporting documentation for each line item. o Definitions of allowable expenditures and required classifications. o Review and approval workflows.  Established a double-verification process, requiring two qualified staff members to independently verify all numeric entries prior to submission.  Implement a centralized documentation repository for financial records, worksheets, cost allocation documents, and reconciliation statements.  Establish a mandatory documentation checklist that must be completed before a report can be sent for approval.  Create standardized reconciliation templates tying reported amounts directly to the general ledger or supporting program records.  Complete a retrospective review of all RSA submissions for the necessary reports.  Identify inaccuracies, variances, and documentation gaps.  Develop corrected versions of each affected report.  Prepared a formal communication package for RSA including: o Corrected reports o Explanation of errors o Documentation supporting corrected amounts Conclusion: This Corrective Action Plan establishes a comprehensive strategy to resolve reporting errors, strengthen documentation practices, and prevent future inaccuracies in RSA federal grant reporting. Through strengthened controls, trained staff, and rigorous review processes, the Commission will ensure ongoing compliance and improved accountability. Anticipated Corrective Action Date: October 30, 2026 Responsible for Corrective Action: Corey Bresina, Administrative Services Manager cbresina@icbvi.idaho.gov (208) 334-3220

Finding Number: 2025-001 Condition: The Organization submitted a Request for Reimbursement (SF-270) that included $91,453 for the remaining balance of certain vehicle lease agreements that had not been paid at the time of the request, resulting in Federal funds held in excess of immediate cash needs. As of December 31, 2025, $51,642.70 remained unexpended. In addition, the semiannual financial reports submitted to the Forest Service reported the funds received as cash disbursed, overstating reported disbursements. Management response: Management concurs with this finding. The Organization acknowledges that Federal funds were requested in excess of its immediate cash needs and that the semiannual financial reports did not reflect actual disbursements during the year ended December 31, 2025, and is committed to implementing the corrective action described below. Corrective action plan: In response to the condition in reference, management will establish the following corrective action: • Notify the Forest Service in writing of the unexpended advanced funds and obtain a determination on whether the balance must be returned or may be applied to future lease payments. No additional funds will be requested for the vehicle leases until the determination is received. • Determine whether the advanced funds earned interest and, if applicable, remit it in accordance with 2 CFR 200.305(b). • Adopt a written procedure requiring that each SF-270 be supported by a worksheet showing that costs included in reimbursement requests have been paid, that advances do not exceed 30-day cash needs, and that prior advances have been fully expended. The worksheet will be reviewed and approved before each request is submitted. • Submit revised semiannual financial reports reflecting actual cash disbursements recorded in the accounting records. • Prepare future financial reports from actual disbursements recorded in the general ledger, reconciled to the general ledger and reviewed by a person independent of the preparer before submission. • Provide training to personnel responsible for payment requests and financial reports on the award's terms and conditions and the cash management and reporting requirements of 2 CFR Part 200.

Corporation's Response: 1. The amount undisbursed, $15,000, was notified to the Project of awareness that we intend to return it as soon as possible. We will be contacting the Awarding Agency Officer to allow us the specific instructions for returning funds through the Payment Management System (PMS) following the agency's refund rules. Also, we have procedures to determine whether any interest earned in the advance must be remitted under 2 CFR§ 200.305(b)(9). 2. We have developed and implemented written cash management procedures to ensure that advance requests are limited to immediate cash needs and each of them is backed by paid invoices. 3. A monthly reconciliation is done for each of the funds, comparing federal disbursements with actual disbursements to avoid excessive requests for unused funds. 4. Constant monitoring has been established. Analyses are carried out of the approved and used budget. This analysis is done by someone who doesn’t handle payments, for the segregation of duties and supervision and the senior management does reviews to make sure everything gets done on time. 5. A formal training program on federal award requirements has been developed and implemented for all staff involved in administration, financial management, procurement, and reporting of federal awards. PR CONCRA management traces all CFR 200-related training and federal fund management training for the staff who can attend or participate in these seminars virtually.

The Children Service Department will seek legal advice on the implementation of a policy that meets the requirements set for in 2 CFR 200.302(b)(7) for determining the allowability of costs in accordance with Subpart E-Cost Principles.

The Commissioner’s office will consult with legal counsel to update polices to meet requirements of 2 CFR 200.

FINDING 2025-023 Finding Subject: Title I Grants to Local Educational Agencies - Reporting Contact Person Responsible for Corrective Action: Jenna Harrington, Ahnaf Tahmid & Marlaina Johns Contact Phone Number and Email Address: 574-393-6000, jharrington@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: A comprehensive Internal Controls Manual was written and released in December 2024 with implementation beginning July 1, 2025. This includes segregation of duties, purchasing processes, contacts process, grant processing, Grant Reimbursements The reimbursement process was updated to include all required supporting documentation, such as transaction detail and summary reports. Each request is also reviewed and signed by the supervisor to document approval. On a recurring basis, the Director of Federal Grants generates the detailed expenditure report and budget summary. The detailed report is filtered to capture only the transactions occurring since the previous reimbursement request, making new expenditures easy to identify. These amounts are added to the cumulative reimbursement totals, which are then compared to the total disbursements shown on the summary report to ensure they align. Once the totals match, the reimbursement request is reviewed by the Chief Financial Officer and submitted to the awarding agency. Since there was no reimbursement form for this grant, the supervisor review signature was not always collected. It has been added on one of the sheets within the supporting documents of the packet. Financial Reporting Reviewing The fiscal officers managing the grant will have their supervisor review financial reports prior to submission and sign their approval. Anticipated Completion Date: July 1, 2025

CORRECTIVE ACTION PLAN FINDING 2025-022 Finding Subject: Education Stabilization Fund – Reporting 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: Internal Control Manual: Released a comprehensive manual covering segregation of duties, purchasing, and grant management. Reimbursement & Reporting Oversight: Added explicit supervisor review signatures to grant packet supporting documents and financial reports prior to final agency submission. Anticipated Completion Date: Grant Ended: December 2025 IC Updates: January 1, 2025

FINDING 2025-014 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: Centralized Reporting: The Finance Department now mandates that all approved grant documentation (Grant Award Notifications, reimbursement forms, budget breakdowns) be submitted to Finance immediately. This grant is no longer in use. Anticipated Completion Date: September 30, 2024 (grant ended). January 1, 2025 is when grant award documentation sharing was required.

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