Corrective Action Plans

Finding 1186602 (2025-002)

Material Weakness 2025

MN

Student Financial Aid Reporting Significant Deficiency § 200.303

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the Academy reevaluate its procedures and review policies surrounding controls implemented for Title IV Aid. Explanation of disagreement with audit finding: There is no disagreement with the audit find...

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the Academy reevaluate its procedures and review policies surrounding controls implemented for Title IV Aid. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Per finding 2025-002, Summit Academy has been completing the control piece when processing Title IV aid. To further the control of this process, the Financial Aid Manager will provide initials to show evidence of review. Name(s) of the contact person(s) responsible for corrective action: Rachael Farnell Planned completion date for corrective action plan: 07/01/2025

View Audit 394300

Finding 1182962 (2025-302)

Material Weakness 2025

State of Wisconsin

WI

Reporting Internal Control / Segregation of Duties Cash Management § 200.303

Department staff has reviewed the Legislative Audit Bureau’s (LAB) interim audit memo for Finding 2025-302: Grants to States for Medicaid and Children’s Health Insurance Program – Agency Directives. This is the department’s Corrective Action Plan.  Recommendation (2025-302): Grants to States for Me...

Department staff has reviewed the Legislative Audit Bureau’s (LAB) interim audit memo for Finding 2025-302: Grants to States for Medicaid and Children’s Health Insurance Program – Agency Directives. This is the department’s Corrective Action Plan.  Recommendation (2025-302): Grants to States for Medicaid and Children’s Health Insurance Program – Agency Directives. We recommend the Wisconsin Department of Health Services: • Enforce with the fiscal agent that directives require appropriate approval and that the fiscal agent should confirm any directive where the approver may not be authorized; • Ensure that the listings of authorized directive approvers provided to the fiscal agent are updated at least quarterly; • Review policies related to directives, updated the policies to identify those directives that require an approver other than the creator, and document justifications for any directives for which the creator and approver may be the same employee; and • Access the feasibility of changes to the PRISM system that would enforce an approval from a user other than the creator of a directive. Wisconsin Department of Health Services Planned Corrective Action: DMS will ensure that the fiscal agent follows DHS policy to confirm directive approvals. In addition, DHS will update the authorized approvers list at least quarterly, define in policy when an approver other than the creator is needed, and consider changes to the PRISM system to enforce separation of duties between creator and approver. If system changes are feasible, the corrective actions will require additional time to complete beyond what is needed for the policy and procedure changes. Anticipated Completion Date: June 30, 2026 Persons responsible for corrective action: Carrie Kahn, Section Manager Systems Infrastructure Accountability Section, Bureau of Fiscal Accountability and Management, Division of Medicaid Services CarriePKahn@dhs.wisconsin.gov

View Audit 394279

Finding 1182949 (2025-501)

Material Weakness 2025

State of Wisconsin

WI

Reporting § 200.303 § 200.344

This letter is the Wisconsin Department of Transportation's response and corrective action plan for the finding and recommendations made by the State of Wisconsin Legislative Audit Bureau (LAB) in the interim memo dated February 18, 2026. Finding 2025-501: Airport Improvement Program, Infrastructure...

This letter is the Wisconsin Department of Transportation's response and corrective action plan for the finding and recommendations made by the State of Wisconsin Legislative Audit Bureau (LAB) in the interim memo dated February 18, 2026. Finding 2025-501: Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and COVID-19 Airports Programs—Financial Reporting The Wisconsin Department of Transportation (WisDOT) agrees with the audit finding. Planned Corrective Action: • The Bureau of Aeronautics (BOA) will update the current APS-30 BOA Airport Improvement Program Reporting (Grant Reporting) policy and procedures to include a secondary review by the Bureau of Financial Management (BFM). This update will include how corrections will be documented and handled prior to reporting submission to the federal government. • BOA and BFM will develop and implement written procedures for a coordinated internal secondary review of the final SF-271 and SF-270 forms, and the annual and final SF-425 reports, including procedures for maintaining sufficient documentation of the internal review. • BOA will obtain and maintain documentation of the project completion information to be used to initiate the closeout of a grant and/or airport development project. Anticipated Completion Date: May 2026 Person responsible for corrective action: Tami Weaver, Section Chief Airport Program Section WisDOT- Division of Transportation Investment Management, Bureau of Aeronautics tamera.weaver@dot.wi.gov

View Audit 394279

Finding 1182943 (2025-303)

Material Weakness 2025

State of Wisconsin

WI

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

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

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

View Audit 394279

Finding 1182935 (2025-047)

Material Weakness 2025

State of South Carolina

SC

Equipment & Real Property Management Subrecipient Monitoring § 200.303 § 200.313

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

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

View Audit 394274

Finding 1182933 (2025-046)

Material Weakness 2025

State of South Carolina

SC

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.303

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

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

View Audit 394274

Finding 1182930 (2025-045)

Material Weakness 2025

State of South Carolina

SC

Allowable Costs / Cost Principles Subrecipient Monitoring § 200.303

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

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

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Finding 1182929 (2025-044)

Material Weakness 2025

State of South Carolina

SC

Subrecipient Monitoring Special Tests & Provisions § 200.303

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

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

View Audit 394274

Finding 1182927 (2025-043)

Material Weakness 2025

State of South Carolina

SC

Cash Management Subrecipient Monitoring § 200.303

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

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

View Audit 394274

Finding 1182924 (2025-042)

Material Weakness 2025

State of South Carolina

SC

Matching / Level of Effort / Earmarking Subrecipient Monitoring § 200.303

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

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

View Audit 394274

Finding 1182923 (2025-041)

Material Weakness 2025

State of South Carolina

SC

Subrecipient Monitoring Period of Performance Significant Deficiency § 200.303 § 200.403

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

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

View Audit 394274

Finding 1182922 (2025-040)

Material Weakness 2025

State of South Carolina

SC

Matching / Level of Effort / Earmarking Subrecipient Monitoring § 200.303

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

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

View Audit 394274

Finding 1182921 (2025-039)

Material Weakness 2025

State of South Carolina

SC

Reporting Subrecipient Monitoring § 200.303

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

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

View Audit 394274

Finding 1182920 (2025-038)

Material Weakness 2025

State of South Carolina

SC

Allowable Costs / Cost Principles Subrecipient Monitoring § 200.302 § 200.303

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

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

View Audit 394274

Finding 1182919 (2025-037)

Material Weakness 2025

State of South Carolina

SC

Subrecipient Monitoring § 200.303

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

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

View Audit 394274

Finding 1182917 (2025-036)

Material Weakness 2025

State of South Carolina

SC

Allowable Costs / Cost Principles Subrecipient Monitoring § 200.303 § 200.405

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

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

View Audit 394274

Finding 1182915 (2025-035)

Material Weakness 2025

State of South Carolina

SC

Subrecipient Monitoring Reporting Significant Deficiency § 200.303

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

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

View Audit 394274

Finding 1182914 (2025-034)

Material Weakness 2025

State of South Carolina

SC

Subrecipient Monitoring Eligibility Significant Deficiency § 200.303

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

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

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Finding 1182913 (2025-033)

Material Weakness 2025

State of South Carolina

SC

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

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

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

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Finding 1182909 (2025-032)

Material Weakness 2025

State of South Carolina

SC

Subrecipient Monitoring § 200.303

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

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

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Finding 1182905 (2025-031)

Material Weakness 2025

State of South Carolina

SC

Subrecipient Monitoring Period of Performance Significant Deficiency § 200.303 § 200.403

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

The South Carolina Department of Social Services (SCDSS) respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT U.S. Department of Health and Human Services Child Care and Development Fund (CCDF) Cluster – Assistance Listing No. 93.575, 93.596, and 93.489 Disposition of Audit Finding: The SCDSS concurs with the audit finding. Corrective Action: The Department is in the process of closing grants within the accounting system to prevent system-generated payroll expenses from posting after the grant period of performance has ended. This control ensures that payroll charges are restricted to the allowable grant period. Anticipated Completion Date: December 31, 2026 Names of the contact persons responsible for corrective action: • Courtney Hogue, Controller at 803-898-7488 • Hiba Khalaf, Grants Accounting Manager at 803-898-7484

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Finding 1182901 (2025-030)

Material Weakness 2025

State of South Carolina

SC

Allowable Costs / Cost Principles Subrecipient Monitoring § 200.303

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

The South Carolina Department of Social Services (SCDSS) respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT U.S. Department of Health and Human Services Refugee and Entrant Assistance – Assistance Listing No. 93.566 Disposition of Audit Finding: The SCDSS concurs with the audit finding. Corrective Action: SCDSS now has direct access to SCDHHS’s Curam eligibility system, enabling the agency to review individuals categorized under Refugee Medical Assistance (RMA) and ensure they do not remain in the category beyond the federally mandated four-month eligibility period. This access allows SCDSS to verify that no program expenditures are issued for individuals who exceed the allowable timeframe. SCDSS also receives a monthly detailed expense report and invoice from both RSS and RMA subrecipients, which provide documentation sufficient to validate that all expenditures are appropriate and properly attributable to individuals eligible. This report will be used to reconcile payments and confirm alignment between eligibility records and financial activity. Anticipated Completion Date: July 1, 2026 Names of the contact persons responsible for corrective action: • Ambrea Jones, State Refugee Coordinator at 803-898-7303 • Brittney White, State Refugee Health Coordinator at 803-898-7545

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Finding 1182899 (2025-028)

Material Weakness 2025

State of South Carolina

SC

Subrecipient Monitoring § 200.303

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

The South Carolina Department of Social Services (SCDSS) respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT U.S. Department of Health and Human Services Refugee and Entrant Assistance – Assistance Listing No. 93.566 Disposition of Audit Finding: The SCDSS concurs with the audit finding. Corrective Action: The South Carolina Department of Social Services (SCDSS) has formally implemented the Refugee Information Management System (RIMS), the agency’s case management system for the Refugee Resettlement Program. RIMS supports timely processing of Refugee Cash Assistance (RCA) applications and maintains essential program data for individuals applying for refugee benefits. RIMS includes automated, time-sensitive reminders to ensure case managers and eligibility specialists meet the 30-day federal requirement for RCA application processing and determination, prompt generation of required forms at approval, and ensure timely completion of employment services registration or documentation of non-participation with good cause within 30 days of aid approval. Implementation of RIMS will enhance program accuracy, reduce processing delays, and support compliance with federal regulations and agency policies. Anticipated Completion Date: October 1, 2026 Names of the contact persons responsible for corrective action: • Ambrea Jones, State Refugee Coordinator at 803-898-7303

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Finding 1182898 (2025-027)

Material Weakness 2025

State of South Carolina

SC

Subrecipient Monitoring § 200.303 § 200.332

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

The South Carolina Department of Social Services (SCDSS) respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT U.S. Department of Health and Human Services Refugee and Entrant Assistance – Assistance Listing No. 93.566 Disposition of Audit Finding: The SCDSS concurs with the audit finding. Corrective Action: The Refugee Resettlement Program (RRP) will implement a semiannual subrecipient monitoring process conducted by the State Refugee Coordinator and Refugee Contract Monitor. Monitoring activities will utilize standardized checklists aligned with the Code of Federal Regulations governing the Refugee Support Services (RSS) Program, including requirements under Assistance Listing 93.566. All documentation and follow-up actions will be maintained to ensure compliance with federal and state requirements and to support ongoing program integrity. Anticipated Completion Date: May 1, 2026 Names of the contact persons responsible for corrective action: • Ambrea Jones, State Refugee Coordinator at 803-898-7303

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Finding 1182897 (2025-026)

Material Weakness 2025

State of South Carolina

SC

Subrecipient Monitoring Reporting § 200.303

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

The South Carolina Department of Social Services (SCDSS) respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT U.S. Department of Health and Human Services Refugee and Entrant Assistance – Assistance Listing No. 93.566 Disposition of Audit Finding: The SCDSS concurs with the audit finding. Corrective Action: The Department now has controls in place for a more in-depth review by the Grants Accounting Manager of federal reporting to ensure expenditures and cash receipts are reported accurately on the SF-425 reports. The Department has established training for grants accountant staff and an internal tracking log to track subawards issued to ensure FFATA submissions to SAM.gov within the required timeframe. This process was implemented on July 1, 2025. Anticipated Completion Date: Completed Names of the contact persons responsible for corrective action: • Courtney Hogue, Controller at 803-898-7488 • Hiba Khalaf, Grants Accounting Manager at 803-898-7484

View Audit 394274

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