Corrective Action Plans

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).

FINDING 2024-004 Finding Subject: Water and Waste Disposal System for Rural Communities - Equipment Contact Person Responsible for Corrective Action: Amy Crull, Clerk-Treasurer Contact Phone Number and Email Address: (765) 866-0111 / newmarket.in8@gmail.com Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The Town will ensure a detailed breakdown of assets related to its Sewer Construction project is included in its asset records and all required information is contained therein. This will be done with the help of the Town CPA/Consultant. Anticipated Completion Date: February 28, 2026

CORRECTIVE ACTION PLAN: Finding No 2024-004 “ALN #20.106 Equipment and Real Property Management” Name of Contact Person(s): Sheryl Sizemore, Comptroller Ida S. De Brum, Accounting Manager Zack A. Diaz, Internal Auditor Alex Tudela, Procurement Officer Condition 1: CPA agrees with the finding. Although CPA does not maintain an equipment listing that designates which federal program (ALN number) the assets belong to, we are able to trace it through the account number, grant number, U.S. Department designation, and other specific identifying details. Condition 2a: CPA agrees with this finding. The "Fair" condition recorded during the FY24 inventory list was an error. While the asset was physically sighted, it was inoperable in February 2024. Due to funding uncertainty and higher airport priorities, repairs were not made. Current Status: This asset was officially decommissioned in March 2026. Condition 2b: CPA agrees with this finding. It has been inoperable since May 2023. This asset was not on the FY24 inventory list. The reconciliation did not include this asset and it is unclear how the oversight occurred as the inventory listing and fixed asset system records matched at the time. Current Status: This asset is on the FY25 and FY26 inventory list. However, it is still pending decommission. Condition 2c: CPA agrees with this finding. This asset was not listed in blue and data fields (PO, Vendor, Serial No.) are missing because of historical records. We have not been able to properly identify this asset and need more information. Current Status: Wendi (CIP Administrator) has sent an email to the FAA for their help in determining if there are some equipment at the Tower that’s still operational. Condition 2d: CPA agrees with this finding. Log sheets and maintenance records for this asset were not submitted. This was due to the ARFF Truck undergoing radiator repairs prior to being taken out of service in October 2025. Current Status: We are currently awaiting the final assessment report and/or the completed decommission form from ARFF Mechanic. CPA has developed the following corrective action plan related to Equipment Management findings: 1. Established Standard Operating Procedures (SOP) for Equipment Management CPA has established Equipment Management SOPs that were implemented and effective on June 30, 2022. The SOPs detail the equipment management requirements, details, and responsibilities. In addition, the SOPs include an annual mandatory schedule for inventory, disposals, and reconciliation. The Department Heads are reviewing their equipment listings to verify the accuracy of equipment details, provide additional identifying information and confirm existence of all assets listed. The Department Heads will be providing monthly updates to the Procurement Department for entry into the Equipment Management System. 2. Implemented Standard Equipment Management Forms Standard procurement forms have been developed to establish additional controls and reviews for all equipment. These standard forms include requirements such as identifying details for all fixed assets. 3. Developed a Training Plan for Equipment Management Procedures CPA developed an Equipment Management training plan that was implemented on June 17, 2022. The training plan includes annual requirements for training on equipment management and compliance requirements. The training is based on the established SOPs and best practices and is mandatory for all staff involved in equipment management. 4. Internal Auditor Position An internal auditor position was created on May 16, 2022 and hired on August 29, 2022. Part of the internal auditor’s responsibilities include reviewing inventory records and equipment management files for compliance. The internal auditor reports directly to the CPA Board of Director and provides monthly reports. The internal auditor monthly reports are used as a tool to identify areas of equipment management non-compliance for immediate correction. Although equipment SOPs were implemented in 2022, certain issues have continued to occur. These controls, nonetheless, have enabled CPA to identify, address, and correct errors on an ongoing basis, improving accuracy and compliance moving forward. Proposed Completion Date: June 30, 2026

NASD will add the required tracking elements to the Capital asset listing in order to meet the federal compliance requirements. NASD will specifically add the funding source, percentage of federal participation and the Federal Award Identification Number (FAIN). NASD will also properly tag and identify the physical assets.

School’s contract with management indicates that purchases of equipment for school operations and federal programs are to be handled by the management organization. Records related to capital assets purchased with Educational Stabilization Funds did not contain all the required information for the governing authority or the Treasurer to record the capital assets in the school’s financials. The operator will ensure future purchases of capital assets made with federal dollars are submitted to the Treasurer for review and capitalization determination and the management of recorded capital assets.

Finding No.: 2024-037 Equipment and Real Property Management Responding Agency: Department of Administration (DOA) Responsible Personnel: Edward M. Birn, Director Implementation of a Fixed Assets Module as part of the new FMIS system that will help automate the tracking and reporting of Capital assets, is near completion with final testing in progress. DOA will update the SOP for the Fixed Assets for capital asset reporting accordingly. Review of Assets acquired in FY2024 was completed, with FY2025 in progress. As noted previously, the process is hampered by difficulties in recruiting personnel.

Finding No.: 2024-014 Equipment and Real Property Management Responding Agency: Department of Administration (DOA) Responsible Personnel: Edward M. Birn, Director Implementation of a Fixed Assets Module as part of the new FMIS system that will help automate the tracking and reporting of Capital assets, is near completion with final testing in progress. DOA will update the SOP for the Fixed Assets for capital asset reporting accordingly. Review of Assets acquired in FY2024 was completed, with FY2025 in progress. As noted previously, the process is hampered by difficulties in recruiting personnel.

Finding 2024-013 Material Weakness in Internal Control and Material Noncompliance – Equipment and Real Property Management Condition: For the Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and COVID-19 Airports Programs (20.106), CDBG Entitlement/Special Purpose Grants Cluster (14.218), the City must follow equipment and real property management standards as required by 2 CFR section 200.313(c) through (e) which states that a physical inventory of the property must be conducted and the results reconciled with the property records at least once every two years and that adequate maintenance procedures must be developed to keep the property in good condition. 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 (including the federal award identification 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 sales price of the property (2 CFR section 200.313(d)(1)). The City did not have established policies and procedures in place to ensure an inventory of federally acquired property is completed at minimum once every two years, and that inventory records are sufficiently detailed, nor are there established policies and procedures in place for the upkeep and maintenance requirements of federally acquired equipment. Contact Person: Joanne Sterk, Assistant Director of Finance – Operations, City of Danbury Corrective Actions Completed: We agree with the finding. The City performed a full inventory during its 2025 fiscal year to comply with the biennial requirement.

The School has hired a consultant for training.

Management Response/Corrective Action Plan: A formal procedure will be drafted between the city and school to ensure the city is made aware of any assets that are federally funded so they can be designated as such in Munis. The school department will continue to provide the annual asset list to the city and will now include funding source notations for each asset.

The Finance Director updated property records for one asset to include the FAIN number as required. The Superintendent and Finance Director will coordinate with Principals and Directors to ensure that all equipment is accounted for by conducting and certifying a complete physical inventory at least once every two years. A written explanation and report to the central office will be required for missing items. Prior to moving items, a transfer form must be signed by both the sending and receiving parties, and the inventory system will be updated to reflect the transfer. Any items being disposed of or surplused must also be marked as such in the system. If items are sold, a record of sale and deposit of funds should be maintained. Training for Principals, directors, and others will be provided as needed.

Every Woman's Place has fully implemented corrective action to address the induirect cost calculation and reporting issues identified in this exception. The Agency has formally adopted a signle direct allocation methodlogy, consistent with it FY2021 cost allocation plan, and has discontinued the use of de minimis or alternative indirect cost methodlogies. The cost allocation policy has been updated to clearly define the approved allocation medthod, allocation bases (included square footage, FTE, and usage where applicable), and the treatment of administrative and shred costs. This methodology is applied conssitently across allo programs and funding sources to ensure equitable distribution and compliance with 2 CFR 200 requirements. In addition, the Agency now requires annual board-approved certification of the cost allocation methodlogy. Allocation calculation are documented using standardized worksheets and reviewed as part of the monthly and quarterly financial review process to ensure accuracy and consistency prior to financial reporting and FSR submission. The procedures are documented in the Agency's Fiscal and Cost Allocation procedures manual and are fully operational

Claims are submitted to fiscal court for approval for payment. Checks are processed the following day. With the CSEPP program some payments are dependent on advance payments being received. Master inventory is maintained at state level. Local inventory is being updated and will be completed by 12/31/2025.

The District has a physical inventory of all assets scheduled for 2025. The purchase order has been generated. Anticipated Date of Completion: Immediately. Contact Person: Alicia Evans, Ed.D., Assistant Superintendent of Business Affairs.