Corrective Action Plans

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.

2024-007 Material Weakness and Noncompliance, Equipment and Real Property Management Audit Finding: Non-federal entities other than states must follow 2 CFR sections 200.313 (c) through (e) which require that property records must be maintained that include a description of the property, a serial number or other identification number; the source of funding for the property, who holds the tile, the acquisition date, cost of property and other info. The Town could not provide property records including all required information as indicated in the 2 CFR section 200.313 (d)(1). The Town did not perform a physical inventory of the property. Corrective Action Taken: The Town maintains a list of physical inventory by capital project. While it is not cost-efficient to take a full physical inventory, the Town will develop a process to track equipment purchased with federal funding and will maintain support that physical inventories were performed as required. Name and Phone # of Person Responsible for Implementation Mr. Peter Mynarski, Comptroller 203-622-2226

Elementary and Secondary School Emergency Relief – Assistance Listing No. 84.425U Recommendation: CLA recommends that the District establish and implement procedures to ensure that a physical inventory of equipment is conducted at least once every two years. This should include assigning responsibility for the inventory process, setting a schedule for inventory counts, and ensuring that the results are reconciled with the equipment records. CLA also recommends the District review its capital asset tracking processes and implement internal controls to help ensure that all required documentation is entered into the capital asset software when federal funding is involved and there is adequate segregation of duties in regards to capital asset reporting. Explanation of disagreement with audit finding: There is no disagreement with this finding. Action planned/taken in response to finding: The District will either do a self-inventory or hire a firm to do the inventory for us. Name(s) of the contact person(s) responsible for corrective action: Dawn Rausch, Brooke Rosemeyer Planned completion date for corrective action plan: June 30, 2026

Yankton Transit will become familiar with the requirements of CFR, §200.313(a) and will establish internal control policies and procedures and will train staff on those policies and procedures. Currently, we have changed the debit cards to credit cards for proper approval and complete support for the transactions that occur monthly.

Views of responsible officials and planned corrective actions: Management agrees with this finding and will put procedures in place to perform a physical inventory of property at least once very two years. See 2024-007 for management's detailed action plan surrounding the property findings.

Views of responsible officials and planned corrective actions: Management agrees with this finding and will put procedures in place to maintain adequate property records. Action Plan:  Develop a workbook to document all property records in compliance with CFR requirements. o Create a spreadsheet with the required fields (i.e., item description, acquisition date, cost, funding source, location, condition, disposal status). o Align data fields with CFR property requirements. o The anticipated completion date is May 30, 2025, with an updated monthly review.Extract fixed asset purchase records from eFinance and compare them to the latest audit fixed asset listing. o Pull all of the fixed asset account codes since the last completed audit (FY22). o Priority- focus on items purchased with federal funds. o The anticipated completion date is May 30, 2025, with an updated monthly review.  Conduct a physical inventory to verify the present of all listed assets. o Use the workbook developed above as the inventory list to begin physical inventory. o Designate staff to conduct physical verification. o Check each item’s presence, condition, and tag number against records o Use asset tags or serial numbers for tracking. o Note missing, unrecorded, or damaged assets for follow-up. o Adjust the property workbook as needed. o Submit a summary of discrepancies and corrective actions to the Executive Director. o The anticipated completion date is June 30, 2025, with an updated monthly review.  Update the workbook with required details for assets still in possession. o Record all property purchased with federal funds, ensuring accuracy and completeness. o Regularly review, update, and reconcile records with physical inventory. o Save in a shared, secure cloud location for easy access and audit readiness. o Anticipated completion date of July 15, 2025, with an updated monthly review.  Write off any assets listed by not physically accounted for. o Follow the proper steps to write off assets in eFinance. For assistance, refer to the eFinance instructions and APSCN help desk. o Anticipated completion date of July 15, 2025, with an updated monthly review.  Establish procedures for conducting this process and maintaining records annually. o Set up a recurring annual timeline for physical asset verification. o Develop consistent forms and tracking sheets for inventory records. o Designate personnel to conduct, review, and reconcile inventory. o Conduct physical audits regularly. o Update and maintain records. o Annually assess and refine procedures for efficiency and compliance. o Anticipated completion date of July 31, 2025, with an updated monthly review.

Condition: The District did not maintain adequate property records to comply with 2 CFR section 200.313(d)(1). Plan: The District engaged a third party fixed asset vendor to ensure annual updating of property records, including the tagging and marking of items of Federal origin. Date of Completion: June 30, 2025 Name of Contact Person: Dennis Forst, Assistant Superintendent of Business & Operations Management Response: Management concurs with the finding and has developed applicable procedures.

The district will develop written fixed/capital asset procedures that will require that all equipment over the capitalization threshold must include serial numbers in property records and be affixed with a unique asset identification tag. We will conduct a full physical inventory of equipment. As part of this process we will record serial numbers for all applicable items, affix asset tags to all untagged equipment, and record proper disposal of assets. We will provide staff training for all relevant staff on asset management procedures and responsibilities.

The district will develop written fixed/capital asset procedures that will require that all equipment over the capitalization threshold must include serial numbers in property records and be affixed with a unique asset identification tag. We will conduct a full physical inventory of equipment. As part of this process we will record serial numbers for all applicable items, affix asset tags to all untagged equipment, and record proper disposal of assets. We will provide staff training for all relevant staff on asset management procedures and responsibilities.

Corrective Action Plan: The identified conditions relate to the proper maintenance of detailed records of equipment and other assets acquired for research purposes from federal award funding. As a result of personnel turnover in the Union College finance department, the required bi-annual inventory count and reporting was not conducted for fiscal year 2024. The corrective action plan is to conduct this audit at the conclusion of the current fiscal year (2025). Timeline for Implementation of Corrective Action Plan: These corrective action will be completed concurrently with the fiscal year 2025 year end closing and audit procedures. The College will then get back on cycle with a research equipment inventory audit for fiscal year 2026, and then each bi-annual cycle thereafter.

As a corrective measure, BGCPR will take the following actions and will anticipate completing on June 30, 2025: a. Implement and maintain an automated accounting and financial records system to enable real-time oversight of the asset capitalization policy. b. Establish a robust internal control framework including pre-approvals for equipment purchases and cross-validations of financial data. c. Periodic internal monitoring’s to ensure compliance and documentation.d. Update BGCPR’s fiscal management guidance to include a formal provision requiring the capitalization policy to be reviewed every three (3) years in compliance with the ensure compliance with federal regulation 2 CFR §200 regarding asset capitalization criteria. e. Conduct a training program for accounting and financial personnel.

SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE – PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION – COVID-19 – EDUCATION STABILIZATION FUND (ALN 84.425) 2024-006 Internal Control Over Compliance With Equipment and Real Property Management Requirements Finding Summary 2 CFR § 200.313(d)(1) requires the Academy to designate fixed assets purchased under federal programs and to maintain related property records, including a description of the property, a serial number or other unique identification number, the source of funding for the property (including the federal Assistance Listing Number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use, and condition of the property, and any ultimate disposition data, including the date of disposal and sale price of the property. During our priio year audit, we noted that the Academy did not have sufficient controls in place within the COVID-19 – Education Stabilization Fund federal program to specifically identify federally-funded fixed assets and maintain the required records, as noted above, to assure compliance with federal equipment and real property management requirements. The Academy was responsible for submitting a corrective action plan to the Minnesota Departement of Education to rectify this finding, but none was submitted. Corrective Action Plan Actions Planned – The Academy plans to review its internal control procedures to ensure future compliance with the federal compliance requirements specific to equipment and real property management for the COVID-19 – Education Stabilization Fund federal program. Official Responsible – The Academy’s Executive Director, Farhiya Einte. Planned Completion Date – June 30, 2025. Disagreement With or Explanation of Finding – The Academy agrees with this finding. Plan to Monitor – The Academy’s Executive Director, Farhiya Einte, will ensure that federally-funded fixed assets are distinguishable within the Academy’s finance system. The Academy also intends to review its control procedures relating to equipment and real property management requirements to ensure compliance for future federal awards expenditures.