Corrective Action Plans

Finding 2025-003 - Internal Control over Major Federal Program Compliance Program : Education Stabilization Fund (CFDA 84.425) Condition: Lack of policies and procedures for asset inventory management. Repeat Finding and Material Weakness Corrective Action Plan: The District will implement procedures to ensure asset physical inventories are completed and inventory records are completed and updated in accordance with the requirements of 2 CFR 200.318 of the Uniform Guidance. The district will provide training to responsible personnel. Planned Completion Date: March 31, 2026 Responsible Contact Person: Dr Marty Spence, Superintendent (417) 469-3260

Condition: The University did not complete a physical inventory of the property within the last two years. Planned Corrective Action: Management will establish a formal inventory schedule that mandates physical inventory and reconciliation at least once every two years. Designated personnel will be assigned responsibility for executing and documenting the inventory process. Additionally, internal controls will be enhanced through periodic monitoring and reminders to ensure timely completion and proper recordkeeping. Contact person responsible for corrective action: David Dettloff, Staff Accountant Anticipated Completion Date: February 26, 2026

2025-003 – Significant Deficiency and Noncompliance – Federal Equipment Corrective Action Plan: The City will implement a centralized Federal Equipment Register capturing all required data elements under 2 CFR §200.313(d) and assign responsibility to the Logistics Officers of the Fire Department, Police Department, and Department of Public Works, with oversight by Finance. A full physical inventory of federally funded equipment will be completed and reconciled by March 31, 2026, and biennial inventory procedures will be established. Staff will be trained on equipment management requirements, and documentation will be retained to ensure compliance. Anticipated Completion Date: March 31, 2026

The College acknowledges the finding and recognizes the need to strengthen internal controls over equipment and real property management to ensure compliance with applicable federal requirements. During FY2025–FY2026, the College continued its efforts to improve the accuracy, completeness, and maintenance of its capital asset records. These efforts include working toward the implementation of the MIP Fixed Asset Module to improve asset tracking, documentation, and reconciliation of fixed asset records with the general ledger. The College is also working to strengthen procedures for maintaining complete asset information, reconciling physical inventory results with equipment records, and ensuring proper safeguarding and monitoring of College assets. Additionally, the College will improve its procedures for reviewing asset conditions, identifying potential impairment, and maintaining appropriate documentation for asset disposals. These ongoing corrective measures are intended to strengthen accountability, improve the reliability of capital asset records, and prevent recurrence of the finding.

Pohnpei has agreed to the findings and is committed to implementing the recommendations. Ongoing Director of Treasury and Administration Sihna N. Lawrence sihna.lawrence@pohnpeidota.fm

Pohnpei has agreed to the findings and is committed to implementing the recommendations. Ongoing Director of Treasury and Administration Sihna N. Lawrence sihna.lawrence@pohnpeidota.fm

Finding 2024-003: Property and Equipment Management (Repeat) The Inventory tracking sheet did not contain all required federal asset information and was not properly reconciled to property records. Corrective Action Plan The program will implement immediate corrective measures to strengthen property and equipment management in accordance with 2 CFR 200.313(d)(1). The inventory tracking sheet has been updated to include all federally required data fields, (see attachment) followed by a full reconciliation of the revised spreadsheet to existing property records. Missing or incomplete asset information will be identified and corrected, with the Facilities Manager overseeing all updates and reconciliation activities. Property management inventory documentation will be integrated into the monthly and annual fiscal compliance calendar, and the spreadsheet provided will serve as the foundation for continued corrective work already underway. From 60 to 90 days, the program will conduct a complete physical inventory using the updated tracking spreadsheet, reconcile results to property records, document discrepancies, cross-train staff to ensure continuity, and update fiscal policies to reflect strengthened procedures and clarified roles. Long-term oversight will include annual physical inventories, and quarterly compliance updates from the Facilities Manager to the Finance Officer. Head Start Director, Policy Council, and Executive Board, and maintenance of audit-ready property records in a centralized location. Property management procedures will be reviewed annually and updated as needed. Physical inventory will be completed within 90 days, quarterly monitoring will continue, and annual physical inventories will be conducted every year. Evidence of completion will include the updated property management spreadsheet, reconciliation documentation, physical inventory results and reports, updated fiscal policies, and quarterly compliance reports submitted to the Policy Council and Executive Board. Responsible Personnel: Cynthia Cooper – Chief Finance Officer: Oversight, review, and compliance monitoring Sharon Jordan - Head Start Director: Accountability and reporting Estimated Date of Completion: December 2026

Audit Finding Reference: 2024-002 Equipment Records and Physical Inventory Requirements Not Maintained Planned Corrective Action: The Town acknowledges the finding regarding equipment records and physical inventory requirements and appreciates the opportunity to strengthen oversight in this area. The Town will reinforce applicable equipment tracking and physical inventory requirements with responsible departments. Moving forward, the Accounting Department will work with responsible departments to provide guidance regarding applicable equipment recordkeeping and inventory requirements and will increase oversight of compliance as part of its grant monitoring and review processes. Any issues identified through this oversight will be communicated to the appropriate department for follow-up and resolution. Planned Implementation Date of Corrective Action: September 2026 Person Responsible for Corrective Action: Stephanie Pemberton, Town Accountant Please consider this the Town’s official corrective action response to be included in the final audit report.

Conditions 1-5 Repeat Finding, same response for Finding Nos. 2024-007, 2024-012, and 2024-019

Conditions 1-5 Repeat Finding - same response for Finding No. 2027-007, 2024-012, and 2024-025

The MOF recruited a dedicated asset management officer and began a government-wide asset inventory in April 2026. Upon completion, the FMIS asset module will be fully implemented in FY2027 to improve the classification, recording, reporting, and monitoring of capital assets. The MOF also continues to coordinate with Ministries and Agencies to update and reconcile asset records. Repeated finding: same response on Finding Nos. 2024-007, 2024-019, and 2024-25

Finding Number 2024-026 Subject Heading (Financial) or AL no. and program name (Federal) AL #84.425 – EDUCATION STABILIZATION FUND (ESF - AL #84.425D; 84.425U) Planned Corrective Action The Office of Title Services (OTS) staff will ensure that at a minimum a district’s inventory procedures meet the following requirements. • For materials and supply items, the Office of Title Services (OTS) staff will review the district’s inventory procedures for compliance with 2 C.F.R. 200.302(b)(4). • For equipment items ($10,000 or greater unit cost) OTS staff will review the district’s inventory procedures for compliance with the requirements of 2 C.F. R. 200.313 (d)(1) • Additionally, training will be provided to staff during our annual internal training. Anticipated Completion Date Aug-25 Responsible Contact Person Tammy Smith

Finding2024-007:Equipment and Real Property Management (Title V, CFDA 93.U01) Material Weakness (Repeat Finding: 2023-007) Condition: The Organization lacked a system to identify, mark, record, or maintain equipment and real property purchased with federalfunds; no periodic physical inventory was performed; and there was no process to obtain prior written approval for capital expenditures of $10,000 or more, as required by 2 CFR §200.310 through §200.314 and §200.407. Corrective Action: • Establish a property/equipment ledger recording description, acquisition cost, funding source, acquisition date, location, and disposition for all federally funded equipment and real property. • Implement a physical inventory at least once every two years, reconciled to the property ledger, per 2 CFR §200.313(d). • Implement a prior-written-approvalworkflow requiring awarding agency/pass-through approval before purchasing or leasing equipment ($10,000+ per unit), land, or buildings with federal funds. • Apply the GLrestructuring from Finding 2024-003 so capital purchases under Title V are individually identifiable. Responsible Party: Chief Financial Officer Anticipated Completion Date: Property ledger established concurrent with the Blackbaud implementation, kickoff August 13, 2026; complete by March 31, 2027; first physical inventory completed by June 30, 2027

Finding Number 2024-015 (Repeat 2023-017) Corrective Action Plan Equipment and Real Property Management — AL 93.323 (U.S. Department of Health and Human Services) • Rebuild the Fixed Asset Register so that it captures the property record data elements required by 2 CFR § 200.313(d)(1) —description, serial or other identification number, source of funding including the Federal award identification number, title holder, acquisition date and cost, percentage of Federal contribution, and the location, use and condition of each asset, together with any disposition data. • Complete the rebuild well ahead of the FY2025 audit for migration into the fixed asset register module of the new FMIS (FreeBalance), with the funding source of each asset identified. • Conduct physical checks and counts of assets following the rebuild, including locating and confirming the status and condition of the assets identified in this finding, so that adjustments — including deletions and other corrections — are recorded for FY2025 and appropriate action is taken on assets found to be missing, broken, or requiring repair or disposition. • Establish, issue and enforce a written policy with comprehensive procedures covering effective safeguards against loss, damage or theft of property, together with maintenance protocols to keep property in good condition, in line with 2 CFR §§ 200.313(d)(3) and (d)(4). • Continue advice, guidance and training to the Supply Team on the recording, tracking, reconciliation, safeguarding and maintenance of capital assets. • Pursue resolution of the questioned costs of $19,824 through the audit resolution process with the grantor agency upon completion of the physical verification. Anticipated Completion Date 9/30/2027 Responsible Person (Contact Details) Ms. Melynda Irons Acting Assistant Secretary, Treasury Email: melynda.irons@dofa.gov.fm Mr. Peni Tikoisireli Financial Advisor Email: peni.tikoisireli@dofa.gov.fm Mr. Lester Sackryas Supply Manager Email: lester.sackryas@dofa.gov.fm

We agree with the recommendations offered for the relevant programs and are in the process of establishing and fully implementing updated policies and procedures to address the findings while considering appropriate measures and tools to ensure compliance by the various locations. The anticipated completion date is October 2026.

Every two years the school will begin completing a physical inventory of fixed assets. Additionally, the school will revise their fixed asset policy to make sure it is in alignment with Federal regulations.

DHS maintains an internal asset listing. Additionally, DHS will be onboarding dedicated staff for Head Start inventory. DHS will continue to collaborate with the Department of Property and Procurement to ensure compliance with Federal regulations regarding equipment and its maintenance.

The Government concurs with the auditor’s findings and recommendations and finalizing a comprehensive corrective action plan to strengthen grant management and compliance through the Public Finance Management initiative including the development of a three-tier overarching Financial and Compliance policy and procedures framework. The Government’s Audit Committee is leading the development of a structured, three-tier policy and procedures framework under the Public Finance Management project. This framework includes Tier 1, which establishes the overarching Financial and Compliance Policy; Tier 2, which defines Standard Operating Procedures (SOPs) to promote cross-agency consistency; and Tier 3, which outlines detailed, step-by-step procedures that clearly define roles and responsibilities and accountability measures to ensure compliance with all federal regulations including equipment and real property management. Additional staff will be needed to effectively support the initiative and regular training sessions will be provided to staff to ensure they understand and adhere to compliance requirements with monitoring and evaluation occurring by the OMB Compliance Unit supported by the Government’s Audit Committee, to assess and improve the effectiveness of controls.

As part of our ongoing commitment to strengthen internal controls, VIDE is finalizing its comprehensive Standard Operating Procedures (SOPs) for Equipment and Real Property Management. To directly address the recommendation for improved monitoring and communication, the Fixed Asset Director is implementing a formal process to perform and document quarterly inventory reconciliations, ensuring timely coordination across all divisions handling federal assets. Munis serves as our official system of record. Current controls dictate that all required data fields (as outlined in 2 CFR 200.313) must be inputted before an asset record can be created in the system. The Government acknowledges the current limitation where a system reporting error prevents certain populated information from exporting onto standard reports. The Third-Party Fiduciary Agent (TPFA) is actively escalating this issue with Munis technical support. To ensure compliance to date, no permanent system solution has been found; therefore, the Fixed Asset Director will implement an interim workaround. This will involve utilizing alternative data queries or manual consolidation from the Munis asset profiles to ensure that complete, fully compliant equipment listings can be successfully generated and provided upon request until the system reporting error is permanently resolved by the TPFA and Munis.

As part of our ongoing commitment to strengthen internal controls, VIDE is finalizing its comprehensive Standard Operating Procedures (SOPs) for Equipment and Real Property Management. To directly address the recommendation for improved monitoring and communication, the Fixed Asset Director is implementing a formal process to perform and document quarterly inventory reconciliations, ensuring timely coordination across all divisions handling federal assets. Munis serves as our official system of record. Current controls dictate that all required data fields (as outlined in 2 CFR 200.313) must be inputted before an asset record can be created in the system. The Government acknowledges the current limitation where a system reporting error prevents certain populated information from exporting onto standard reports. The Third-Party Fiduciary Agent (TPFA) is actively escalating this issue with Munis technical support. To ensure compliance to date, no permanent system solution has been found; therefore, the Fixed Asset Director will implement an interim workaround. This will involve utilizing alternative data queries or manual consolidation from the Munis asset profiles to ensure that complete, fully compliant equipment listings can be successfully generated and provided upon request, until the system reporting error is permanently resolved by the TPFA and Munis.

As part of our ongoing commitment to strengthen internal controls, VIDE is finalizing its comprehensive Standard Operating Procedures (SOPs) for Equipment and Real Property Management. To directly address the recommendation for improved monitoring and communication, the Fixed Asset Director is implementing a formal process to perform and document quarterly inventory reconciliations, ensuring timely coordination across all divisions handling federal assets. Munis serves as our official system of record. Current controls dictate that all required data fields (as outlined in 2 CFR 200.313) must be inputted before an asset record can be created in the system. The Government acknowledges the current limitation where a system reporting error prevents certain populated information from exporting onto standard reports. The Third-Party Fiduciary Agent (TPFA) is actively escalating this issue with Munis technical support. To ensure compliance to date, no permanent system solution has been found; therefore, the Fixed Asset Director will implement an interim workaround. This will involve utilizing alternative data queries or manual consolidation from the Munis asset profiles to ensure that complete, fully compliant equipment listings can be successfully generated and provided upon request until the system reporting error is permanently resolved by the TPFA and Munis.

The Government concurs with the auditor’s findings and recommendations and finalizing a comprehensive corrective action plan to strengthen grant management and compliance through the Public Finance Management initiative including the development of a three-tier overarching Financial and Compliance policy and procedures framework. The Government’s Audit Committee is leading the development of a structured, three-tier policy and procedures framework under the Public Finance Management project. This framework includes Tier 1, which establishes the overarching Financial and Compliance Policy; Tier 2, which defines Standard Operating Procedures (SOPs) to promote cross-agency consistency; and Tier 3, which outlines detailed, step-by-step procedures that clearly define roles and responsibilities and accountability measures to ensure compliance with all federal regulations including equipment and real property management. Additional staff will be needed to effectively support the initiative and regular training sessions will be provided to staff to ensure they understand and adhere to compliance requirements with monitoring and evaluation occurring by the OMB Compliance Unit supported by the Government’s Audit Committee, to assess and improve the effectiveness of controls.

DPNR concurs with the auditor’s findings and recommendations. The Asset Management Division (AMD) adheres to Federal equipment guidelines. Assets are tagged, and records are created using the Tyler Munis Resource Planning system (ERP). In 2022, AMD inventoried four agencies, ensuring compliance with Federal regulations. The completed Standard Operation Policies and Procedures (SOPP) are pending approval, crucial for enhancing internal controls. Training sessions for fixed assets employees are planned, and additional staff will be needed to support the initiative effectively.

FINDING 2024-003 Finding Subject: Highway Planning and Construction - Equipment and Real Property Management Contact Person Responsible for Corrective Action: Craig Zandstra Contact Phone Number and Email Address: 219-945-0543 Ext 234, craigz@lakecountyparks.com Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The County will implement a process of better tracking of asset purchases paid with the Highway Planning and Construction grant. Will ensure that the list is updated every year. Anticipated Completion Date: December 2026

Management has implemented procedures to ensure that prior to the disposition or sale of surplus assets identified as federally funded, the Parish will request disposition instructions from the federal awarding agency as required by 2 CFR 200.313(e).