Corrective Action Plans

Significant Deficiency 2024-001. Equipment and Real Property Management United States Department of Education, Passed Through New York State, Department of Education: Education Stabilization Funds COVID-19: Elementary and Secondary School Emergency Relief Fund ALN: 84.425D COVID-19: American Rescue Plan - Elementary and Secondary School Emergency Relief Fund ALN: 84.425U Condition: The District did not include capital expenditures paid with federal awards in its capital assets inventory records. Planned Corrective Action: The Deputy Superintendent will put procedures in place to ensure that equipment and capital spending of federal funds are included in the District’s fixed assets inventory. The federally-funded project noted in this report will also be added to the fixed assets inventory records for financial reporting purposes. Responsible Contact Person: Ms. Diane Castonguay, CPA Deputy Superintendent East Williston Union Free School District 11 Bacon Road Old Westbury, New York 11568 Anticipated Completion Date: August 15, 2025.

FINDING 2024-003 Finding Subject: Education Stabilization Fund- Equipment and Real Property Management Contact Person Responsible for Corrective Action: Todd Slagle Contact Phone Number and Email Address: 812-874-2243 tslagle@northposey.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The School Corporation will develop and implement a formal internal control system to ensure proper segregation of duties and compliance with federal regulations. Missing assets, such as the ironworker purchased with ESSER 3E funds, will be added to the listing immediately. The School Corporation will conduct periodic reviews and reconciliations to verify that all assets, including those purchased with federal funds, are accurately reflected in the capital asset ledger. Anticipated Completion Date: We anticipate completing the Corrective Action by July 1, 2025

Finding 2024-004 – Equipment Management (Significant Deficiency and Noncompliance) Planned Corrective Action: The University is currently conducting an inventory and will ensure that it occurs at least every two years. Anticipated Date of Completion: June 2025 Person Responsible for Corrective Action: Director of Financial Services & Cost Management and AVP/Controller

Contact Person Responsible for Corrective Action: Dalton C. Tunis Contact Phone Number: 574-896-2155 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: For future projects and purchased equipment, NJ-SP will make sure proper documentation will be recorded for any equipment and real property purchased. An internal control system will be put into place that ensures the Business Manager receives proper documentation and records the capital assets into a spreadsheet in order for the equipment can be traced and the School Corporation stays in compliance. Anticipated Completion Date: June 30, 2025

CORRECTIVE ACTION PLAN - Recognizing the need/requirement to maintain property records appropriately, the district is working to schedule/complete a comprehensive physical inventory that should assist in identifying the location of equipment funded by the Education Stabilization Fund (ESF), resulting in questioned costs of $2,186,066 per this finding (in addition to all other equipment carried by the district regardless of funding source). The district plans are to continue to work with NEFEC to enact property records within Skyward to capture accurate information and a base starting point per completion of a physical inventory. All property records will then be maintained in Skyward to capture all information required under Federal funding provisions and a reconciliation to physical inventory counts will be prepared no less than every 2 years. Anticipated Completion Date: June 30, 2025 Responsible Contact Person: Walter Copeland, Interim CFO

FINDING 2024-002 Finding Subject: COVID-19 - Education Stabilization Fund - Equipment and Real Property Management Summary of Finding: The district did not have proper internal controls in place and documentation to track property or capital assets that were purchased with federal grant funds. Contact Person Responsible for Corrective Action: Dawn Mason, Business Manager, DeKalb Co. Eastern CSD Contact Phone Number and Email Address: 260-868-2125; dmason@dkeschools.com Views of Responsible Officials: We concur with the findings. Description of Corrective Action Plan: As federal funds are used and expended, property and capital assets that meet or exceed the threshold will be entered on a spreadsheet by the Business Manager or Grant Administrator which will contain 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 (FAIN)), 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, and use and condition of the property Anticipated Completion Date: All expenditures initiated after March 12, 2025

Management concurs. The City will update the fiscal policies and procedures manual to ensure a physical inventory of all city-wide departments will be performed every two years for all capital assets.

Department: Education Title: Internal control over ESF subrecipient monitoring procedures needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department will work with the GEMS software developer to create the collection tool that will be integrated into the FY24 and FY25 ESSER performance report. The School Administrative Unit reports will be due on May 5, 2025 and reviewed by the individuals who continue to support the work of the Emergency Relief Funds. The equipment inventories and real property lists will be maintained in the Department files. Completion Date: April 15, 2025, May 5, 2025, and July 1, 2025, respectively Agency Contact: Shelly Chasse-Johndro, Director, ESEA, DOE, 207-458- 3180

FINDING 2024-005 (Section III-Federal Award Findings and Questioned Costs) Finding Subject: COVID-19 Education Stabilization Fund- Equipment and Real Property Management Audit Finding: Material Weakness, Other Matters Contact Person Responsible for Corrective Action: Brian Leitch and Holly Singleton Contact Phone Number and Email Address: 260-347-2502 bleitch@eastnoble.net, hsingleton@eastnoble.net Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: If Federal funds are used to purchase Capital Assets, the Deputy Treasurer will ensure that the percentage of federal participation and the use and condition of the property will be included in the capital asset listing. The listing will then be reviewed and approved by the CFOO. Anticipated Completion Date: Immediately

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 Federal Award Numbers and Years (or Other Identifying Numbers): S425D210013, 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 $2,799,607 on building renovations which was charged to the ESSER II (84.425D) and ESSER III (84.425U) grant awards. It was noted these capital asset acquisitions were not reported on the capital asset listing for the School Corporation as of June 30, 2024. 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: Dawn Cook, Corporation Treasurer; Joel Mahaffey, Superintendent Contact Phone Number: (260) 692-6193 Description of Corrective Action Plan: Business Office personnel will ensure that federally funded capital assets are included in the capital asset listing for ACCS. Further, the capital asset list will clearly identify any equipment or projects that were supported by federal funding. Anticipated Completion Date: Implementation is immediately.

Context: The School Corporation expended $1,313,973 on building renovations which was charged to the ESSER III (84.425U) grant award. The School Corporation was unable to provide the capital asset listing as of June 30, 2024, for testing to ensure the building renovations were properly included on the listing. Contact Person Responsible for Corrective Action: Jennifer Graves Contact Phone Number: 812-659-1424 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: A fixed asset inventory will be secured prior to the next audit. Anticipated Completion Date: December 31, 2025

FINDING 2024-002 Finding Subject: COVID-19 - Education Stabilization Fund – Equipment and Real Property Management Contact Person Responsible for Corrective Action: Carolyn Wallace Contact Phone Number and Email Address: 812-738-2168, extension 102 and WallaceC@shcsc.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: South Harrison Community School Corporation personnel in conjunction with the services of a qualified outside agency will compile an initial capital asset listing and will begin to conduct periodic inventory reviews as required. Anticipated Completion Date: August 15, 2025

FINDING 2024-002 Finding Subject: Special Education (IDEA)-Equipment The school corporation did not maintain sufficient property records of equipment purchased with Special Education funds. All equipment was not properly added to records systems and information was entered incorrectly in the records system. Contact Person Responsible for Corrective Action: Robert McIntire Contact Phone Number and Email Address: 765-455-8000 rmcintire@kokomo.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The school corporation will retrain grant directors and review all requirements related to Equipment and Property Management. Anticipated Completion Date: Retraining of grant directors and all employees related to property management related to grant purchases will be completed by September 1, 2025.

Corrective action The Foundation duly complies with four out of five requirements of 2 CFR section 200.313(d). Management is committed to fully complying with the regulations. A plan was developed to begin a physical inventory by the end of the fiscal year ending June 30, 2024. The execution of this plan is approximately 80% completed as of the date of this letter. The Foundation plans to complete the inventory by June 30, 2025. Finance staff has been performing the inventory, along with the staff of the Foundation’s various departments. The inventory plan includes the following: • Time schedules. • Identification of responsible parties. • Detailed description of entire inventory process. • Submission to research laboratories, clinical research, clinical laboratory and administrative offices of the list of inventory assets, according to books, along with instructions for the identification of the assets. • Deadline for departments to submit to finance the certified list of inventories. • Upon receipt of department inventories, the finance staff has scheduled visits to each department, to confirm the inventory certification received. • Reconciliation of the inventory with general ledger, and booking of any necessary adjustments in general ledger and the subsidiary ledger. • Preparation of an inventory report for audit purposes. The report’s total dollar amount will be reconciled with the general ledger, including all equipment certified in the inventory. Submitted on March 25, 2025, by:

District will review federal claims for equipment purchases items greater than $5,000 and life longer than a year and capture equipment items into the property records as they are received.

FINDING 2022-003 Contact Person Responsible for Corrective Action: Jeff Gambill, Superintendent; Brian Rehmel, Maintenance Supervisor Contact Phone Number: 812-665-3550 Views of Responsible Official: We concur with the finding, Description of Corrective Action Plan: The Superintendent and Maintenance Supervisor will begin reviewing all capital asset inventories. These inventories are completed every two years, by an independent company. The Superintendent and Maintenance Supervisor will also maintain a corporation capital asset listing, updating any additions between inventories, to verify that the assets are properly accounted for on the capital asset inventory. The Superintendent and Maintenance Supervisor will add to the corporation capital asset listing, the assets that were omitted from the most recent capital asset inventory, and ensure that those assets are listed in the next capital asset inventory. Anticipated Completion Date: The Superintendent and Maintenance Supervisor will immediately begin maintaining a capital asset listing, updating any additions between inventories, as well as adding the assets that were omitted on the previous capital asset inventory.

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 Federal Award Numbers: S425D210013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Equipment and Real Property Management Audit Findings: Material Weakness Condition and Context: 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. For four sample items tested, we noted the School Corporation expended approximately $86,300 on a 72-passenger bus, $670,600 on roof renovations, $19,000 on an intercom package for the high school, and $21,000 on admin building improvements, which were charged to the ESSER II (84.425D) and ESSER III (84.425U) grant awards. For three of the four sample items (all except the bus purchase), it was noted the capital asset acquisitions could not be traced to the capital asset listing for the School Corporation as of June 30, 2024. We noted the acquisitions were properly approved by IDOE in the grant application, management completed a physical inventory in the 2-year audit period, and the assets were properly maintained and safeguarded. Contact Person Responsible for Corrective Action: Bonnie Thopy Contact Phone Number: 317-729-5746 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: In the past, items were added to the fixed asset report by the deputy treasurer. Since that position had been dissolved, the responsibility for adding items will now be moved to the administrative assistant, Jordan Bledsoe. Anticipated Completion Date: A complete fixed asset inventory will be completed during the summer of 2025 by Asset Control Solutions at that time all items will be current. Going forward the business manager will provide the administrative assistant the information to be added to the fixed asset report. The business manager will insure the AFR matches the amount on the fixed asset report, and the AFR will be reviewed by the superintendent before submitting to verify the amounts.

Management will ensure that a physical inventory of assets is completed on a regular basis. Keely Linton, Executive Director, is the person responsible for the corrective action. The completion date of the corrective action is March 12, 2025.

Corrective Action Plan: The University has developed a project plan to identify all assets that require inventory to meet Uniform Guidance requirements. Tasks, milestones, and deliverables will drive completion of the project, with the imperative to meet federal regulations and alignment with operational procedures taking priority. Contemporaneous reporting will be enhanced to include aged inventory dates and allow for setting of inventory tasks across a continuum. Meeting Uniform Guidance requirements will take precedence when completing inventory of all federally sponsored equipment, and if in conflict with internal operations and/or processes. UT Southwestern Medical Center’s Asset Management procedure manual(s) will be revised to include the new process, controls, and reports established to consistently and repeatedly meet Uniform Guidance requirements. Further, UT Southwestern’s Sponsored Program Administration and Internal Audit teams will coordinate to perform ad hoc internal reviews to assure the respective project plan has been completed and new process continues to meet the requirements of Uniform Guidance respective asset management inventory requirements. Implementation of this plan will commence February 1, 2025, with asset inventory being fully compliant with Uniform Guidance prior to July 31, 2025. Internal reviews will continue for a minimum period of two fiscal years, through FY27. Implementation Date: February 1, 2025 Responsible Person: Megan G. Marks, PhD, Associate Vice President, Sponsored Programs Administration Sharonda Lawson, Director, Sourcing and Contract Management Timothy Martin, Director, Purchasing

Corrective Action Plan: UTMB will conduct a review of asset property records to ensure the serial numbers and locations are correct. UTMB Finance will coordinate with UTMB Supply Chain to evaluate and strengthen controls related to assets in Surplus warehouse. Implementation Date: November 1, 2025 Responsible Person: Mike Linton, Sr. Finance Manager

Corrective Action Plan: UT Health-San Antonio’s Property Control group will continue to stress the importance of updating equipment locations in a timely manner. The University’s Property Control practices will be enhanced to emphasized compliance with our property policies. The Property Control Office will continue to perform more rigorous spot audit reviews subsequent to the annual inventory process for respective departments with federally funded assets. Implementation Date: February 2025 Responsible Person: Yvette Martinez, Senior Director of Financial Affairs

Corrective Action Plan: The University has taken steps to identify and correct the deficiencies in Inventory’s processes and external knowledge base. Inventory Services has reviewed their website and made the necessary updates to their inventory trainings and guides. In the near future, Inventory Services will create a web-based training module that will be required for departmental inventory contacts. Inventory will still offer individual training sessions to departmental inventory contacts. Implementation Date: August 2025 Responsible Person: Christopher Ochoa, Inventory Manager

Corrective Action Plan: TEES Property Management will continue working with departments to increase their awareness regarding the updating of location information in a timely manner. Departments will also be reminded regularly to notify property management of missing and/or stolen property when discovered and to submit the appropriate forms. Property Management will increase communication to departments regarding the replacement of asset tags that have been damaged and/or are missing. A listserv has been established by TEES to effectively and efficiently communicate this information to the departments. Implementation Date: February 2025 Responsible Person: Jennifer Caddel, Inventory & Property Control Coordinator

FINDING 2024-005 Finding Subject: COVID-19 – Education Stabilization Fund – Equipment and Real Property Management Contact Person Responsible for Corrective Action: Robert Glover Jr. Contact Phone Number: (219) 945-0250 Contact Email Address: rglover@hobart.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The corrective action plan for finding 2022-003 was effective in ensuring that equipment over the capitalization threshold was barcoded and documented in School City of Hobart’s internal asset tracking system which we began utilizing in 2024. The external consulting company we used to perform our asset inventory omitted the items in question from their report. The items in question will be added to the external consultant’s existing spreadsheet. School City of Hobart will examine other options for external asset inventory services in the future. Any future purchases will be catalogued and provided as a list to the party who conducts our next asset inventory. School City of Hobart will require written documentation from any future consultant that all new items were added into the inventory in the future. Anticipated Completion Date: 04/30/2025

RCS will update the current practice of formal updates to the Fixed Asset List from every other year, to every year effective the 2025 year