Corrective Action Plans

Finding Number: 2024-036 Audit Type: Single Audit Finding Title: Deficiencies in Equipment and Real Property Management Related Finding: 2024-021 (Yellow Book) 1. Contact Person Responsible for Corrective Action Name: Shannah Weaver Title: City Clerk Department: Finance Department 2. Planned Corrective Action The City will implement a centralized inventory tracking system and conduct annual reconciliations to ensure compliance with federal property management standards. 3. Anticipated Completion Date June 30, 2026 - plan already in place 4. Management1s Response Management concurs with the finding and will ensure staff are trained on property management procedures. 5. Status of Prior Year Finding This is a new finding.

Views of Responsible Officials and Planned Corrective Action: The Designees of the Grants Monitoring and Compliance team will oversee the completion of a physical inventory of all equipment that exceed $5,000 by October 31, 2026. The Grants team will also house documentation.

Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding. Corrective Action: Fair Haven has internal records with tracking assets but will ensure that all qualifying capital asset purchases are properly capitalized and recorded on the balance sheet in accordance with GAAP and added to the fixed asset register. Management will review significant purchases at acquisitions to confirm proper treatment going forward.

CONDITION: The Regional Office of Education No. 39 manually maintains and stores its inventory of property and equipment. Asset details in the property records include only the description of the property, manufacturer’s serial number or other identification number, source of funds, who holds title, acquisition date, and cost of the property. The other minimum requirements specified by the Code including FAIN, location, use and condition of the property are not included in the property records. PLAN: The Regional Office of Education No. 39 created a combined inventory documents to provide a complete detailed accounting of all property and equipment which provided majority of the required information for federal funds as well as a reconciliation to the capital outlay disclosures within the financial statements. The missing data requirements for the compliance with record keeping of Equipment from Federal funds will be added for Fiscal Year 2025. ANTICIPATED DATE OF COMPLETION: Implemented August 2025

Finding 2024-003 Information on the federal program: Subject: Water and Waste Disposal Systems for Rural Communities – Equipment and Real Property Management Federal Agency: U.S. Department of Agriculture Assistance Listing Number: 10.760 Federal Award Number: N/A Pass-Through Entity: N/A Compliance Requirements: Equipment and Real Property Management Audit Finding: Material Weakness, Noncompliance Condition: An effective internal control system was not in place at the District to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management compliance requirement. Context: The District did not maintain an updated asset listing that reflects the construction in process balance related to the project funded with federal funds. There was approximately $25.0 million of disbursements from federal funds related to the project as of December 31, 2024. Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The third-party accounting firm will compile a capital asset listing that lists out the District’s capital assets and notes the required information, which will include the federal funding source (if applicable). The capital asset listing will be updated on an annual basis. The Board of Directors will review the capital asset listing. Responsible Party and Timeline for Completion: The third-party accounting firm and the Board of Directors will implement the corrective action plan, which will go into effect immediately.

VIEWS OF RESPONSIBLE OFFICIALS Management agrees with the finding and has initiated corrective actions to address each of the issues identified by the auditors. The Department of Education of Puerto Rico (PRDE) recognizes the importance of maintaining an accurate and up-to-date property inventory in accordance with federal regulations under 2 CFR §200.313(d), and is implementing measures to strengthen controls, ensure proper tagging, and monitor the location, use, and condition of all federally funded equipment. The Property Office has initiated a complete physical inventory to reconcile the existing property records with actual assets. All equipment custodians will be required to verify and certify their assigned inventory to ensure records are accurate and reflect current locations and responsible personnel. For deficiencies identified for the IDEA Cluster: Condition 1: For the item describing a three-person sectional sofa, which upon inspection corresponded to a five-burner stove, the Property Office corrected the equipment tag to ensure identification of both items. The correction was made directly on the physical assets to properly reflected the correct property numbers and descriptions. Condition 2: The item identified as not observed corresponds to software licenses that were distributed to teachers for instructional use. The Property Office maintains a detailed record identifying the licenses purchased, the specific equipment on which each license was installed, and the corresponding custodian. For deficiencies identified for the Education Stabilization Fund Programs: Condition 1: For the items that could not be observed during the auditors’ site visits, the Property Office will perform a follow-up investigation with the corresponding school to locate the equipment. Condition 2: The school where the air-conditioning unit is located has experienced electrical voltage issues, which have delayed its installation to prevent potential damage to the equipment. The situation is being addressed in coordination with the school’s maintenance team to correct the electrical problem. Once resolved, the PRDE will proceed with the installation. In parallel, the property office will consult with the corresponding federal program to evaluate the possibility of relocating the unit to another school where the equipment is needed and can be safely installed and used. Condition 3: This type of equipment is kept in the warehouse until a specific need is identified in a school facility. Once a school requests or is identified as requiring the equipment, the Property Office initiates the corresponding transfer, and the movement is duly documented and updated in the property management system.. this process ensures that equipment is allocated efficiently based on program needs and that all transfers are properly supported with documentation. Condition 4: The hydroponic nursery will be relocated to a school where it can be properly utilized for educational purposes. The Property Office, in coordination with the corresponding program, will verify the current condition of the equipment and perform the necessary repairs or adjustments to ensure it is fully functional and in use as intended. Condition 5: The Property Office has already identified a new school to which the Apple computer will be transferred to ensure it is properly utilized for educational purposes. The transfer will be completed om coordination with the corresponding program, and the property records will be updated accordingly to reflect the new location and custodian of the equipment. The PRDE is committed to correcting all deficiencies noted in the finding. All actions described above will be documented and reported as part of the corrective action plan, with an expected completion timeline within fiscal year 2025. These measures will ensure compliance with the Uniform Guidance and strengthen the overall management and safeguarding of federally funded property and equipment. IMPLEMENTATION DATE In process. RESPONSIBLE PERSON Nilda Z. Morales Vazquez Property Office Director

2024-002 Program/Department: Conservation, Research, and Development Federal Agency: Department of Energy AL #: 81.086 Federal Award Identification Number and Year: Various – See SEFA Pass-through Entity: Various – See SEFA Type of Finding: Internal Control over Compliance - F) Equipment and Real Property Management Internal Control Impact: Material Weakness Finding: Management did not conduct a physical inventory, as required. Status: Management has met with the program team to review the actions and time necessary to conduct a physical inventory and is executing the following Corrective Action Plan. Corrective Action Plan: 1. Preparation Task: Assign team, prepare inventory checklists Assigned to: Program Manager Completion: October 27, 2025 2. Schedule and Execute Physical Inventory Task: Conduct on-site subrecipient equipment inventory, delegating checklist to subrecipients as necessary. Assigned to: Program Team Completion: November 3 to December 5, 2025 3. Reconciliation Task: Compare physical inventory to system records, update records, investigate discrepancies Assigned to: Contract Administrator Completion: December 12, 2025 4. Review and Update Procedures for Equipment and Real Property Management Task: Review procedures to identify failure points and opportunities to create redundancies, update procedures, train all program staff on new procedures, to include a review of compliance responsibilities and their impact on MEC’s standing and ability to do our mission work. Assigned to: Contract Administrator Completion: December 15, 2025 5. Reporting Task: Report completion of Corrective Action Plan as needed for audit record Assigned to: Executive Director Completion: December 19, 2025 Person(s) Responsible for Implementation: KT Engle, Sr. Program Manager, KT.Engle@metroenergy.org, (816) 531-7283 Greg Betzwieser, Contract Administrator, greg.betzwieser@metroenergy.org, 816-531-7283

Planned Corrective Action: We will maintain a detailed listing of all real property and equipment purchased with federal funding. We will also continue to have executed agreements dictating the treatment of real property and equipment with beneficiaries of all items that ownership is transferred from the Organization to ensure compliance. Name of Contact Person: Rhonda Conn, Associate Director Anticipated Completion Date: October 1, 2025

Finding 2024-001 Finding Subject: Community Development Block Grant Program- Equipment and Real Property Management. Contact Person Responsible for Corrective Action: Mary Fletcher, Clerk-Treasurer Contact Phone Number and Email Address: (765) 998-7439 ext. 1, mfletcher@uplandindiana.com Views of Responsible Officials: We concur with the finding. Correction Action Plan: The Town of Upland will concur with our asset management consultant and have the missing information added to our asset ledger. Anticipated Completion Date: September 30, 2025

FINDING 2024-001 (20.106(Airport Improvement Program – Equipment and Real Property Management) Finding Subject: Material Weakness, Other Matters Contact Person Responsible for Corrective Action: Debra Walker Contact Phone Number and Email Address: 765-529-2800; dwalker@henrycounty.in.gov Views of Responsible Officials: We concur with the findings. Description of Corrective Action Plan: We will be getting all of the Capital Assets and Real Property information from the Airport Board and will enter all of this into our Capital Assets. We will send the board a copy of our Capital Asset Policy so they will know the procedure. Anticipated Completion Date: We will have this completed by July 25, 2025.

FINDING 2024-001 Information on the federal program: Subject: Assistance to Firefighters Grant Program - Internal Controls Federal Agency: Department of Homeland Security Federal Program: Assistance to Firefighters Grant Program Assistance Listing Number: 97.044 Federal Award Numbers and Years (or Other Identifying Numbers): EMW-2022-FG-08560 Pass-Through Entity: N/ A Compliance Requirement: Equipment and Real Property Management Audit Finding: Material Weakness Condition: An effectiye internal control system was not in place at the City to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management Requirements compliance requirements. Context: The capital asset listing provided by the City did not include any of the assets purchased with the Assistance to Firefighters Grant program funds. The fire station has a system in place to track their capital assets, however, upon review of the capital asset listing, it did not include the assets purchased with the grant noted above. Further, the capital asset listing did not include information such as the estimated useful life of the equipment nor did it include the funding source used to purchase the equipment. The amount of equipment purchases with the Assistance to Firefighters Grant funds, for the year ended December 31, 2024, was $815,546. Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: Management will ensure that the City's capital asset listing is updated on an annual basis. The City and the fire station will also work together to ensure the capital asset listing is complete and includes all the required information. Responsible Party and Timeline for Completion: The Clerk-Treasurer is the responsible party. The corrective action plan will be implemented during calendar year 2025.

FINDING 2024-001 Finding Subject: Airport Improvement Program - Equipment and Real Property Management Federal Agency(s): Department of Transportation Federal Program(s): Airport Improvement Program CFDA Number(s): 20.106 Federal Award Number(s) and Year(s)(or Other Identifying Numbers): AIP 3-18-0059-040-2023 Pass-Through Entity: Department of Transportation Compliance Requirement(s): Equipment and Real Property Management Audit Finding: Material Weakness and other matters. Contact Person Responsible for Corrective Action: Timothy Baty Contact Phone Number and Email Address: 765-747-5690, tbaty@muncie-airport.com Views of Responsible Officials: “We concur with the finding.” We were not aware of the requirements to track / list the Percentage of Federal Funds, the use of, or the condition of on the Asset record. We just completed a audit in early 2025 covering the years 2020-2023 and were not informed of these Federal Requirements. Description of Corrective Action Plan: The Delaware County Airport Authority will adopt a amended Fiscal Management plan including a Capital Asset Policy outlining the process of recording capital assets and adding the required information to the register. As well as adding a internal control and segregation of duties to approve capital asset ledger and value prior to the end of the year to be included in the AFR. Anticipated Completion Date: Anticipated approval of Policy will be at our next Airport Authority meeting on August 18, 2025. Resolution 2025-007 Fiscal Plan Ammend. Adopted 8-18-2025

FINDING 2024-001 Finding Subject: Airport Improvement Program - Equipment and Real Property Management Contact Person Responsible for Corrective Action: Eric R. Bobcek, C.M. Contact Phone Number and Email Address: 219.324.3393 / eric@laporteairport.com Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The Airport Authority will enhance our record of Capital Assets to better reflect the following: • The equipment description (including serial number or other identification number) • Source of funding for the property (including the federal award identification number) • Who is the title holder • The acquisition date • Cost of the property • Percentage of federal participation of property cost • The location of the property • Use and condition of the property • The ultimate disposition data including the date of disposal and sales price Additionally, the Airport Authority will perform inventory updates at a minimum of once per year. Anticipated Completion Date: 1/1/2026

Finding Number: 2024-001 Equipment and Real Property Management (Internal Control and Compliance) Condition Our testing of the expenditures of Airport Improvement Program funds identified $192,000 of equipment purchased as part of the rehabilitation of the air traffic control tower. This equipment was recorded in the Authority's property records. However, the property records did not contain the required data elements noted above. Response/Planned Corrective Action We agree with the auditor’s findings and have already taken corrective measures to ensure compliance. Specifically, we conducted a full review of the Authority’s property records and updated the equipment entries associated with this project to include all required data elements. To strengthen compliance moving forward, we have created a Standard Operating Procedure (SOP) that mandates completion of all required data elements before any asset record is finalized. In addition, the SOP establishes a protocol for conducting periodic internal audits of property records to confirm accuracy, completeness, and adherence to federal requirements. These corrective actions have already been implemented, and the Authority will maintain ongoing oversight to prevent recurrence. Responsible Contact Person: Courtney K. Pittman Interim Executive Director, St. Johns County Airport Authority

The Department will enforce policies and procedures to ensure that detailed records are kept for equipment and a physical inventory is completed at least every 2 years.

Finding Number: 2024-001 Planned Corrective Action: I will work with ODEW to make sure that the school bus partially purchased with federal grant funds is tracked and reported appropriately. Anticipated Completion Date: 09/01/2025 Responsible Contact Person: Lowell Bailey, Treasurer, Wellington Exempted Village Schools

Finding Number: 2024-002 Planned Corrective Action: The District will update the capital asset listing. Anticipated Completion Date: 6/30/26 Responsible Contact Person: Kaitlin Huck, Treasurer/CFO

Physical inventory has been completed, and this process was added to our monitoring calendar to be completed in May of each year. Regarding insurance reimbursement, our policies and procedures are updated to reflect this requirement, and the fiscal staff has been trained on this requirement.

The District will maintain property records in accordance with District Policy & Uniform Guidance and ensure that equipment and/or property acquired with federal funds will be inventoried and reconciled within two preceding years of acquisition.

2024-001 – Equipment and Real Property Management Policy Planned Corrective Action: Management is working on creating and implementing policies and procedures surrounding equipment and real property management. Name of Contact Persons: Amanda Galindo, Executive Director, Angie Warren, Finance Manager and Teri Ortiz, Grants Specialist Anticipated completion date: May 23, 2025

Management Response: Complete training of staff in various departments that are associated with capital assets tasks: financial management system modules and processes. In addition, the fixed asset fiscal analyst will complete training in modules for equipment and real property tracking, managing, monitoring, and reconciling. Improve communication with departments for capital assets with the Property and Supply Department, and for real property with the Treasury and Housing Management departments. Develop a monthly schedule for all the financial services departments to have all GL reconciliation and postings completed by a specific day of each month. Anticipated Completion Date: December 31, 2025 Responsible Party: Chief Financial Officer, FSB Department Management

Finding: 2024-082 - One of the 40 sampled equipment had a lapse of greater than two years between physical inventories. Questioned Costs: None Assistance Listing Number: 93.859 Assistance Listing Title: RDC Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): There is no disagreement with the audit finding. Corrective Action (corrective action planned): The findings have been corrected. UAA provided and arranged for a timely inventory for all assets but the finding related capital asset was marked as “Unlocated’ due to the loss of information through employee turnover. This asset has been located and inventoried in Banner. A new procedure has also been implemented effective FY25 to make sure material unlocated/unreported assets are reported and handled timely. Completion Date (list anticipated completion date): Completed Agency Contact (name of person responsible for corrective action): Kim Stanford, UAA General Support Services Director, 907-786-4668

Finding: 2024-044 - Auditors could not obtain sufficient and appropriate evidence to verify compliance with FWC’s equipment and real property management requirements. Questioned Costs: Indeterminate Assistance Listing Number: 15.605, 15.611 Assistance Listing Title: FWC Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): ADFG agrees that the policy and procedure for management of equipment, real property, and capital improvements are insufficient. Corrective Action (corrective action planned): ADFG will establish procedures and training to ensure that all equipment, real property, and capital improvements are managed in strict compliance with federal requirements. For equipment management, ADFG will take the following actions: 1. Ensure capital and sensitive equipment is accounted for in IRIS through a fixed asset transaction (FN, FA, FM, FT. or FD). Centralized data in IRIS will streamline inventory management and compliance. The IRIS fixed asset intent (FN) transaction, implemented July 1, 2024, ensures all equipment is tied to the purchasing document for better tracking of funding source information. 2. Develop and implement standardized procedures for inventory management in IRIS in coordination with the Office of Procurement and Property Management, Department of Administration. This creates consistent and accurate inventory management practices across the department. 3. Create and distribute inventory logs for staff to use in remote locations to address challenges in retrieving inventory items during seasonal months.. This will result in enhanced field equipment tracking and timely identification of equipment needs or disposal. 4. Develop comprehensive training for staff involved in equipment management to ensure staff are well-trained and knowledgeable about inventory management procedures and compliance requirements. 5. Establish clear guidelines for the timely disposal of broken, failed, or obsolete equipment and ensure efficient and compliant disposal of unnecessary equipment. This will result in reduced storage and maintenance costs. For real property and capital improvement projects, ADFG will take the following actions: 1. Collaborate with Alaska Department of Natural Resources and United States Fish and Wildlife Services on land certification in the federal application TRACS. Post-certification, ADFG will develop tracking logs to ensure annual site visits occur. 2. Develop department policies and procedures to ensure real property is managed according to federal requirements as authorized in grant awards. Provide training to program staff and administrative staff on the Code of Federal Regulations requirements and proper management of departmental record-keeping logs, including site visit dates and file location for site visit notations. Completion Date (list anticipated completion date): December 31, 2025 Agency Contact (name of person responsible for corrective action): Eric Verrelli, Procurement Specialist 5 Jessica Hood, Accountant 5

Finding 2024-002 – Activities Allowed/Unallowed, Costs Principles and Period of Performance (Internal Controls Over Compliance) (Repeat Finding 2023-001) Condition: During our review of the Coalition’s disbursements related to the Title V major program, we examined 68 transactions for internal controls over compliance. 7 of the 68 transactions examined did not contain sufficient evidence that a review and approval process was completed prior to payment being processed. Corrective Action Plan: In response to the finding regarding insufficient internal controls over compliance for disbursements related to the Title V major program, the Nebraska Urban Indian Health Coalition (NUIHC) has previously taken several corrective actions to strengthen compliance, including: 1. Review and Revision of Policies and Procedures: NUIHC conducted a comprehensive review of internal control policies and procedures related to disbursements. Updates were made to ensure alignment with 2 CFR §200.313(a), and clear guidelines for review and approval processes were established. 2. Staff Training and Education: Training was provided to procurement and finance staff to ensure understanding of the revised procedures and federal compliance requirements, emphasizing the importance of proper approvals prior to disbursement. 3. Implementation of Standardized Approval Controls: A formal approval process and checklist system were implemented to ensure all disbursements are reviewed and approved by designated authorities before payment, with documentation retained for compliance. 4. Ongoing Monitoring and Internal Reviews: NUIHC began conducting quarterly internal compliance checks to verify adherence to updated procedures. Update and Continuation Plan: While these corrective actions were successfully implemented, the retirement of the former CEO temporarily stalled consistent oversight and reinforcement of these procedures. With new leadership in place, NUIHC is recommitting to the continued execution and monitoring of these corrective actions. Refresher training will be incorporated into ongoing professional development and onboarding for new staff, and quarterly internal audits will resume as scheduled. Timeline for Implementation: Corrective actions were initially implemented in 2024, and reinforcement activities—including staff refreshers and compliance monitoring—will continue a rolling basis starting July 2025. Responsible Party: Chief Financial Officer, Carlett Gregory Anticipated Completion Date: Ongoing; reinforcement begins July 2025

Program: Port Security Grant Program Finding: 2024-004 Contact Person: Karen Rindone Assistant Fire Chief Long Beach Fire Department Phone: (562) 570-2544 Email: Karen.Rindone@longbeach.gov Planned Actions: The Fire Department will ensure that all grant funds are expended in compliance with grant guidelines, including the completion of a biennial Equipment Inventory and the submission of a certification letter verifying its accuracy to the grantor every other year. Effective June 16, 2025, the Fire Department will conduct an Equipment Inventory and submit a verification letter to the grantor confirming its completion on a biennial basis. The current Equipment Inventory will be completed by the Support Services Bureau by September 30, 2025. The Fire Department will ensure the accompanying verification letter is sent to the grantor along with the updated inventory list. This biennial requirement will be integrated into the Department’s annual calendar. Following the FY2025 inventory, the next cycle will occur in FY2027 and continue in every odd-numbered fiscal year thereafter. Expected Completion Date: 9/30/2025 Finding: 2024-004 Program: Port Security Grant Program Federal Award Number: EMW-2021-PU-00259 Contact Person: Don Kwok Assistant Director of Finance City of Long Beach Harbor Department Phone: (562) 283-7575 Email: Don.Kwok@polb.com Finding: The Harbor Department failed to properly record the disposition of a federally funded asset. The asset was still marked as “in service” within the equipment listing for FY2024. However, the item had in fact been disposed of during FY2024 after an accident. The asset had a $0 value prior to the accident which initiated the disposal. Corrective Action Plan: The Harbor Department will enhance its written procedures on equipment disposals and provide training to appropriate Finance, Security, and Maintenance Division staff in FY 2025 to ensure compliance and timeliness in following equipment disposal procedures.