Corrective Action Plans

2025-001 – Federal Equipment Inventory Cluster: Research and development Sponsoring Agency: Various Award Name: All awards for 3 campuses with federal equipment expenditures in the Schedules of Expenditures of Federal Awards (SEFA) Award Number: Various Assistance Listing Title: All awards for 3 campuses with federal equipment expenditures in the SEFA Assistance Listing Number: All awards for 3 campuses with federal equipment expenditures in the SEFA Award Year: 2024-2025 Pass-through entity: All pass-through awards for 3 campuses with equipment expenditures in the SEFA Campus One The campus acknowledges the audit finding that the requirement under 2 CFR 200.313(d) to conduct a physical inventory of federally funded equipment at least once every two years and reconcile the results with property records was not met. The campus is committed to maintaining accurate equipment records and ensuring sustained compliance with federal equipment management requirements. The delay in completing the required inventory cycle occurred in two phases: • Post-COVID Inventory Cycle (2021–2022): We received a federal exception for the inventory due June 30, 2021, with the expectation that the cycle would resume and be completed by June 30, 2022. Although partial inventory activity occurred in July 2022, covering a portion of campus assets, a full campus-wide validation was not completed by the required deadline. Continued operational recovery challenges, including limited access to research spaces and staffing constraints until campus fully reopened in May 2023, contributed to the delay in restoring the full two-year cycle. • Staffing Disruption (2024–Mid 2025): From early 2024 through mid-2025, the campus’s sole dedicated equipment administrator was on extended leave. While Accounting Services staff maintained essential functions such as new equipment tagging and property record maintenance, the department did not have sufficient specialized capacity to complete the full physical inventory validation process during that period. We are pleased to report that the equipment inventory process was successfully restarted in July 2025. Following the return of dedicated staff and the department's stabilization in mid-2025, we prioritized the backlog of equipment validations. As of the date of this response, we have made significant progress in bringing our physical inventory records into compliance with federal standards. We anticipate completing the full physical inventory and reconciliation of all federally funded equipment by June 30, 2026, thereby restoring full compliance with the required two-year cycle. To ensure that such delays do not recur, the campus has, as of January 2026, implemented a strategic realignment of the teams responsible for equipment and property management. Key improvements include: • Cross-Training and Redundancy. We have implemented a cross-training program in which multiple members of the Accounting team are now trained on the physical inventory validation protocols. This ensures that the process is no longer dependent on a single individual and can continue uninterrupted during future personnel absences. • Enhanced Oversight: We have integrated equipment inventory status into our regular financial control reviews to provide management with earlier visibility into potential reporting or timing gaps. • Team Realignment: The team structure has been adjusted to provide better coverage of federal equipment and real property management, enabling more consistent rolling inventory cycles as required by federal guidelines. The campus remains dedicated to meeting all federal compliance requirements and believes these structural changes will provide the necessary resilience for our equipment management program. Since July 2025, the equipment validation has resumed on a structured schedule, and backlogged activities have been resolved. Physical verification and reconciliation are progressing toward full completion. Oversight mechanisms and staffing redundancies are operational. These measures significantly reduce the risk of future noncompliance. For inquiries regarding this finding, please contact Biju Kamaleswaran at biju@ucsc.edu. Campus Two The root causes for equipment certifications not being completed or being completed late were that departments overlooked the deadline and that some department staff were not familiar with the certification process. To address these issues, we will implement several corrective actions: • Include the Dean’s and Vice Chancellor’s offices in equipment certification notifications to alert senior management of the requirement and keep them apprised of progress toward completion. • Increase the frequency of communications with departments prior to the certification deadline and will include certification status in those communications. • Notify the campus of the requirement to provide justification for equipment certifications submitted after the deadline and will include this requirement in the initial annual notifications, reminder emails, and the Equipment Certification form. • For equipment certifications not received by the deadline, Accounting will notify the applicable Dean’s and Vice Chancellor’s offices and inform them of the department’s Care and Control of Equipment policy. This campus’ inventory is split into two cycles. Cycle 1 is notified of their inventory certifications being due in odd years, and Cycle 2 in even years. Implementation will begin with the initial annual equipment certification notification in August 2026, with reminder notifications sent periodically from August through the October certification deadline. Departments may complete their equipment certifications at any time and do not need to wait for notification emails, as instructions and information are available on the campus Finance website. Accounting will monitor compliance by tracking progress toward completion through the certification deadline, comparing completion and delinquency rates with prior years, validating that certifications previously submitted late are submitted on time in subsequent years, and notifying the relevant Dean’s and Vice Chancellor’s offices of repeat violations. For inquiries regarding this finding, please contact Taylor Urban at turban@ucdavis.edu. Campus Three Based on the campus’s internal review, both assets reached the end of their operational utility and were handled in a manner consistent with university policy and reasonable effort. The NSF-funded research equipment purchased on September 29, 2006, was fully depreciated by 2011 and physically validated in 2024 as non-operational. During the 2026 inventory cycle, the department confirmed the unit had been cannibalized for parts to maintain active laboratory equipment. The university-titled physics equipment purchased on October 23, 2002, remained in service for over two decades and was fully depreciated prior to disposal. Its tracking was affected by the administrative split of the Department of Physics and Astrophysics and the retirement of the Principal Investigator, after which the office contents were sent to Surplus following standard university procedures. Both assets exceeded their expected service lives and have now been retired. The campus will implement mandatory targeted training for departmental equipment custodians to ensure policy alignment and will establish a rolling custodial training schedule, with completion required prior to gaining access to the asset system. Training completion will be tracked through metrics provided by UC Learning. The campus will also launch recurring campus-wide communications providing guidance on equipment inventory best practices and compliance requirements and will formalize an enhanced workflow with Surplus Sales to verify and scan inventorial assets upon pickup or arrival at the warehouse to improve the timeliness of inventory record updates. Campus communications and departmental training will begin prior to May 1, 2026 and continue on an ongoing basis through June 30, 2028, with training prioritized by risk. The Surplus Sales Alignment will also begin prior to May 1, 2026, with protocol finalization by the third quarter of 2026. As immediate remediation, the assets identified in the finding have been reconciled and updated in the system, and the campus is consulting with departments that previously bypassed standard procedures to establish more robust internal controls. For inquiries regarding this finding, please contact Daniel Clipson at dclipson@ucsd.edu.

CORRECTIVE ACTION PLAN FISCAL YEAR OF FINDING: June 30, 2025 AUDITOR FINDING: 2025-001 – Research and Development Cluster Area: Equipment Uniform Guidance (2 CFR 200.313(d)) requires non-federal entities to maintain effective control and accountability for all federally funded equipment, including procedures to ensure assets exist, are used for authorized purposes, and are properly disposed of when no longer needed. Uniform Guidance further contemplates periodic physical inventories of equipment and reconciliation to property records at least once every two years. Policies and procedures should address all federal awards, regardless of awarding agency. Based on testing performed, assets had been disposed but not removed from the asset subledger. In addition, a full inventory of federally funded assets was not completed within a two year timeframe and key data was not reconciled. It is recommended that the fixed asset policy is expanded and formalizes alignment with Uniform Guidance requirements, including (1) Performing and documenting a physical inventory of federally funded equipment at least once every two years, with reconciliation to the fixed asset subledger. (2) Ensuring timely communication and documentation of asset disposals to Finance for record updates. CLIENT PLANNED ACTION: (1) Amend Capital Assets policy to align with Uniform Guidance including periodic physical inventories of equipment and reconciliation to property records at least once every two years. (2) Perform inventory and reconcile asset listing. (3) Develop training materials focusing on the policies and procedures around federal equipment management including period inventories, reconciliations and processing of disposal requests. (4) Provide training to grant and research department staff, administrators, and principal investigators in equipment compliance requirements. CLIENT RESPONSIBLE PARTIES: Carrie Kopsch, Manager of Research Administration Kelli Varney, Executive Director of Financial Reporting and Systems COMPLETION DATE: Action plan items (1) and (3) will be completed by June 30, 2026, and items (2) and (4) will be completed by June 30, 2027.

Finding Number: 2025-002 Equipment Property Management Recommendation: The University needs to enhance the precision of the controls over equipment purchases to ensure that a property record is created within the system containing the required information, inclusive of the federal award, for all federally funded equipment. Management concurs with the auditor’s recommendation. The University has taken immediate steps to comply with 2CFR 200.313 and implemented the following actions: Planned Corrective Action (1): The University has established a bi-weekly reconciliation process for federally funded assets to strengthen compliance and ensure the timely and accurate inclusion of all federally funded asset purchases in the asset register. Anticipated Completion Date: Completed Responsible Contact Person: Eric Hughey, Fiscal Manager, Asset Accounting & Surplus/Nataliya Samodov, GCA Director Planned Corrective Action (2): The University has implemented an additional control through exception reporting and follow-up with responsible parties to ensure that all registered assets are tagged at the time of installation. Anticipated Completion Date: Completed Responsible Contact Person: Eric Hughey, Fiscal Manager, Asset Accounting & Surplus/Nataliya Samodov, GCA Director

Information on the federal program: Subject: Education Stabilization Fund (ESF) Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425U, 84.425W Federal Award Numbers and Years (Or Other Identifying Numbers): S425U210013, S425W210015 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management compliance requirements. Context: There were nine equipment purchases made during the audit period and charged to the ESF grants which totaled $564,248 in the aggregate. During testing of equipment purchases, the following items were noted: • The School Corporation provided a capital asset listing that had not been updated since 2020. As a result, none of the equipment items selected for testing that were purchased with ESF funds were included on the listing. Additionally, the listing did not include required elements under 2 CFR §200.313(d), including documentation of the federal funding source and the condition of the property. • The School Corporation did not perform a physical inventory of equipment at least once every two years as required by 2 CFR §200.313(d)(2). As such, management was unable to demonstrate that federally funded equipment was being periodically verified and reconciled to property records. Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: Management will perform a comprehensive inventory and evaluation of all assets including those purchased with ESF funds and ensure they are appropriately recorded within a detailed asset listing. Responsible Party and Timeline for Completion: Philip Marsh / Jun 30, 2026

Finding 2025-701: Research and Development Cluster—Physical Inventory Requirements for Federal Equipment Planned Corrective Action: The University agrees with the condition that we did not perform a physical inventory of all federal equipment during FY 2024-25, because we did not conduct physical inventories at a sufficient number of departments to ensure departments last inventoried during FY 2022-23 were included. To ensure compliance with 2 CFR § 200.313, we will have 97% (3092) of all federal equipment last inventoried before June 2023 completed by June 30, 2026. For the remaining 3% (85), we will have them completed by the end of December 31, 2026, as we’ll need time to conduct a formal inventory of the remaining departments. We will update our procedures to require an annual selection of a sufficient number of departments to ensure that at least 50% of all federal equipment is inventoried each year. Lastly, we will implement and document a required review of the federal equipment listing annually to identify any items that have not been physically inventoried within the last two years and complete any required physical inventories by end of fiscal year. Anticipated Completion Date: December 31, 2026 Person responsible for corrective action: Cha Ying Lor, Finance Associate Director Division of Business Services Accounting Services – Financial Information Management chaying.lor@wisc.edu

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

FINDING 2025-008 Finding Subject: COVID-19 - Education Stabilization Fund – Condition of Records Federal Agency: Department of Education Audit Findings: Material Weakness, Modified Opinion Contact Person Responsible for Corrective Action: Lela Simmons, CFO Contact Phone Number and Email Address: 219 391 4100 Ex 12365: lesimmons@ecps.org Views of Responsible Officials: We concur with the finding Description of Corrective Action Plan: Internal controls will be put in place to ensure all COVID 19 ESSER Funds are reported accurately to the State and Federal Department of Education. Reimbursements will be attached to State Email for disbursement. Anticipated Completion Date: We anticipate having the above corrective action plan in place by October 31, 2026

Finding 2025-001 – Education Stabilization – Equipment and Real Property Management Context: For the 4 sample items tested, the acquisitions were not reported on the capital asset listing for the School Corporation as of June 30, 2025. For 3 of the sample items, the School Corporation expended $2,530,939 on building renovations which was charged to the ESSER III (84.425U) grant award. For the other sample item, the School Corporation expended $17,513 for playground equipment that was charged to the ESSER III grant. Additionally, we noted the School Corporation’s capital asset listing did not contain all the required information, including the source of funding for the property, outlined in the criteria above. Contact Person Responsible for Corrective Action: Kyle Mealy Contact Phone Number: (765)726-0594 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: Marion Community Schools acknowledges that certain capital assets purchased with ESSER III funds were not included on the School Corporation’s capital asset listing as of June 30, 2025, and that the listing did not include all required elements, including the source of funding. To address this finding, the School Corporation will work with its contracted capital asset management firm, AdTec, which assists annually with the preparation and maintenance of the School Corporation’s capital asset records. The ESSER III funded building renovations totaling $2,530,939 and the $17,513 playground equipment purchase will be reviewed with AdTec and incorporated into the capital asset listing during the next scheduled capital asset update process. Marion Community Schools will ensure that the capital asset records maintained with AdTec include all information required under 2 CFR 200.313, including the source of federal funding and federal participation for assets acquired or improved using ESSER III funds. In addition, the Business Office will implement procedures to review federally funded purchases periodically to determine whether items meet capitalization or equipment thresholds and should be reported on the capital asset listing. Anticipated Completion Date: June 30, 2027

FINDING 2025-010 Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listing Number: 84.425U Federal Award Number and Year: S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Summary of Finding: The School Corporation prepared a fixed asset report that contained all inventory and assets purchased that exceeded the School Corporation's capitalization threshold through June 30, 2025. The School Corporation did not have any policies or procedures in place to ensure the listing was complete, contained all the required information, nor was there any documentation that a physical inventory was completed every two years as required by Indiana Code. The following required information was missing from the details of capital assets: source of funding for the property, acquisition date, cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, use and condition of the property, and disposition data. Contact Person Responsible for Corrective Action: Kim Holmquist Contact Phone Number and Email Address: 219-924-4250 kholmquist@griffith.k12.in.us View of Responsible Officials: We concur with this finding. Description of Corrective Action Plan: We will establish a proper system of internal controls, including policies and procedures that will provide segregation of duties to ensure an asset inventory is performed at least every two years. Anticipated Completion Date: June 30, 2026

Finding Number: 2024-001 Planned Corrective Action: The fixed asset in question was inadvertently coded from a supply account. The asset subsequently was not picked up on the pending fixed asset report. Therefore, it did not get recorded to the Equipment Inventory System until it was reported to the Treasurer by the Auditor of State. Moving forward, the Treasurer will scrutinize all purchases for the proper object coding to ensure fixed assets are reporting properly. The Treasurer will also review all purchases for the possibility of posting to the Equipment Inventory System. Anticipated Completion Date: 03/11/2026 Responsible Contact Person: Bruce Steenrod

FINDING 2025-003 (Auditor Assigned Reference Number) Finding Subject: Education Stabilization Fund – Equipment and Real Property Management Contact Person Responsible for Corrective Action: Stefanie Grandstaff, Director of Business Services Contact Phone Number and Email Address: stefanie.grandstaff@epulaski.k12.in.us Views of Responsible Officials: We concur with the finding. Explanation and Reasons for Disagreement: N/A Description of Corrective Action Plan: The Director of Business Services will add the missing asset to spreadsheet used for tracking equipment purchased with federal funds. She will also ensure that all required fields are included and properly completed on the spreadsheet. Anticipated Completion Date: February 28, 2026

District inventory management is governered by Board Policy DID: Inventories, which instructs the Chief Financial Officer to create inventory procedures. After this finding was identified in 2024 Schedule of Findings, a cross-functional work group draft an operational procedure for inventory, incorporating the feedback of Academics, Finance, and Operation. The procedure is now included in the Procure to Pay Manual and will be considered fro annual madatory finance training .

FINDING 2025-006 Finding Subject: COVID-19 Education Stabilization Fund - Equipment and Real Property Management Contact Person Responsible for Corrective Action: Andrea Miller Contact Phone Number and Email Address: 765-564-2100 ext 1002, millera@delphi.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The School Corporation will amend the capital asset listing to include the full $802,314 improvement project, and accurately account for the $344,829 federal portion and calculate the percentage of federal participation. The Corporation Treasurer will prepare a spreadsheet to track all future construction progress and share with the Superintendent and Maintenance Director. This document will then be shared with the capital asset consultant annually for reporting purposes. A column will be added to the capital asset ledger to mark if federal funds were used. Anticipated Completion Date: June 2026

FINDING 2025-003 Finding Subject: Head Start Cluster – Equipment and Real Property Management Contact Person Responsible for Corrective Action: Tina Smith Contact Phone Number and Email Address: (765) 825-2178 tlsmith@fayette.k12.in.us Views of Responsible Officials: We concur with this finding. Description of Corrective Action Plan: The Treasurer will work closely with Ad-Tech to ensure that all required information is reported accurately. Anticipated Completion Date: The capital assets inventory list will be updated to include the above required information beginning with the 2025-2026 Inventory Report.

The KCS Special Education Department will undertake a new physical inventory of all IDEA equipment, updating any inaccurate asset numbers, serial numbers, and locations in the Incident IQ asset management system. Additionally, effective for FY 2027, the District will restructure the department by moving a Special Education IT Asset Management position under the supervision of the District Property Manager to ensure IDEA asset management is consistent with all district property management.

Finding 2025-005 Information on the federal program: Subject: Education Stabilization Fund – Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425U Federal Award Numbers: S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management Requirements compliance requirements. Context: The School Corporation expended $2,354,885 during the previous audit period on equipment acquisitions for a new HVAC system and chiller at the North White Middle-High School building. Equipment acquisitions were charged to the ESSER II (84.425D) and ESSER III (84.425U) grant awards in the prior audit period. During the testing of equipment acquisitions, it was noted the School Corporation had not updated the capital asset ledger as of June 30, 2025 for federal equipment acquisitions made in the current and prior period and had not fully implemented the corrective action plan from the previous audit related to this finding. Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: When the capital asset inventory is completed, the Corporation Treasurer and the Building/Maintenance Director will verify the inventory is up to date and accurate. Responsible Party and Timeline for Completion: Treasurer and Building/Maintenance Director will work together after the school year to ensure the capital asset inventory is current.

MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE AND MATERIAL NONCOMPLIANCE – U.S. DEPARTMENT OF EDUCATION – PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, COVID-19 – EDUCATION STABILIZATION FUND – FEDERAL ALN 84.425 2025-007 Material Weakness in Internal Control Over Compliance and Material Noncompliance With Equipment and Real Property Management Requirements Finding Summary 2 CFR § 200.313 requires the District 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 ALN), 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. A physical inventory of the property must be taken and the results reconciled with the property records at least every two years. During our audit, we noted that the District 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 District does not have a process or procedure in place for a physical inventory of property acquired with federal funds. Fixed assets purchased with federal awards have not been maintained in accordance with federal equipment and real property management requirements. Corrective Action Plan Actions Planned – The District plans to review its internal control procedures to ensure future compliance with the federal compliance requirements specific to equipment and real property management requirements for the COVID-19 – Education Stabilization Fund federal program. Official Responsible – Kathleen Heider, Finance Director. Planned Completion Date – June 30, 2026. Disagreement With or Explanation of Finding – The District is in agreement with this finding. Plan to Monitor – Kathleen Heider, Finance Director, will ensure that federally funded fixed assets are distinguishable within the District’s finance system. The District also intends to review its control procedures relating to equipment and real property management requirements to ensure compliance for future federal awards expenditures.

PTS will update the capital asset listing to include all of the required information, including the source of funding the property. The Assistant Director of Finance will prepare the listing annually, and the CFO will review for completeness and accuracy before finalizing the list.

FINDING 2025-005 Finding Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Contact Person Responsible for Corrective Action: Jamesi Lemon Contact Phone Number and Email Address: jlemon@lakelandlakers.net Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The Director of Business Operations will maintain a spreadsheet of assets purchased and disposed. The spreadsheet will then be compared to the list completed by School Corporation department heads. Anticipated Completion Date: The projected date of completion is August 31, 2026.

Management is currently in the process of conducting a full physical inventory of equipment purchased using federal funds that have a net book value greater than zero in accordance with 2 CFR sections 200.313(c) through (e). The inventory process will be reviewed by management to ensure timely, accurate completion. Going forward, the University will tag all new assets acquired using federal funds. In addition, a revised policy has been established relating to an annual physical inventory of federally purchased equipment to facilitate compliance and increase related inventory controls. The revised policy includes, among other details, standard requirements for inventory tagging and related monitoring.

Information on the federal program: Subject: Education Stabilization Fund – Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425U Federal Award Numbers: S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness Context: For the 2 sample items tested, the acquisitions were not reported on the capital asset listing for the School Corporation as of June 30, 2025. For one of the sample items, the School Corporation expended $333,000 on building renovations which was charged to the ESSER III (84.425U) grant award. For the other sample item, the School Corporation expended $71,000 for locker room upgrades that was charged to the ESSER III grant. Additionally, we noted the School Corporation’s capital asset listing did not contain all the required information, including the source of funding for the property, outlined in the criteria above. Contact Person Responsible for Corrective Action: Eric Speicher Contact Phone Number: 574-598-2768 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: The school management will work with the company it hired for asset management to ensure that all items are properly listed on the asset list. The school management will conduct a thorough secondary review of the company’s final asset list.

Information on the federal program: Subject: Education Stabilization Fund – Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 - Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U, 84.425W Federal Award Numbers and Years (or Other Identifying Numbers): S425D210013, S425U210013, S425W210015 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness Context: For the 2 sample items tested, the acquisitions were not reported on the capital asset listing for the School Corporation as of June 30, 2025. For 1 sample item, the School Corporation expended $810,047 on building renovations which was charged to the ESSER III (84.425U) and ESSER II (84.425D) grant awards. For the other item, the School Corporation expended $9,182 on a vehicle which was charged to the ESSER HCY (84.425W) grant award. Additionally, we noted that the School Corporation’s capital asset listing did not contain all required information, including the source of funding for the property, as outlined in the criteria above. Contact Person Responsible for Corrective Action: Nathaniel Day Contact Phone Number: 317-462-4434 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: I will work with our Capital Asset Inventory vendor to identify and document correctly equipment purchases.

Finding 2025-006 e. Program Name: Head Start and Early Head Start f. Criteria or Specific Requirement: Physical Inventory Observation: Under 2 CFR 200 200.313(4)(2), a physical inventory of property must be taken at least once every two years. The results should be reconciled with the general ledger. g. Condition: The Organization has not performed a physical inventory in the last two years. h. Response: Physical inventory is currently underway, at about 50% completion across multiple locations. We estimate this will be completed by the end of the fiscal year.

FINDING 2025-001 Information on the federal program: Subject: Education Stabilization Fund – Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425U Federal Award Numbers: S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Equipment and Real Property Management Requirements compliance requirements. Context: For 1 of 2 sample items tested, we noted the School Corporation expended $88,727 on bus garage additions which was charged to the ESSER III (84.425U) grant award. It was noted this capital asset acquisition was not reported on the capital asset listing for the School Corporation as of June 30, 2025. Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. Our current protocol puts the sole responsibility for updating the capital asset listing on the Corporation Treasurer. Our policy will be revised to include at least 2 people who review the listing on an annual basis. Responsible Party and Timeline for Completion: Sarah Briggeman, Treasurer. Anticipated completion date: 5/31/26.

FINDING 2025-002 Finding Subject: COVID-19 – Education Stabilization Fund – Equipment and Real Property Management Contact Person Responsible for Corrective Action: Eric Rosebrough, Director of Facilities Contact Phone Number and Email Address: 317-244-0236 erosebrough@speedwayschools.net Views of Responsible Officials: We concur with the finding Description of Corrective Action Plan: The Superintendent, Corporation Treasurer and Director of Facilities will monitor equipment purchases larger than $5,000. Once the purchase is made, the Director of Facilities will tag the equipment and notify the company when the Fixed Asset Inventory is completed. There have been no new ESSER purchases since 2023. Anticipated Completion Date: This is currently being corrected as of 02/17/2026.