Corrective Action Plans

FINDING 2025-006 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds - Reporting Contact Person Responsible for Corrective Action: Catherine MM Lane Contact Phone Number and Email Address: 812-677-3959 clane@vincennes.in.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: All reports will be prepared by the clerk’s office and will be reviewed for errors and omissions by someone who is knowledgeable about the reporting requirements prior to submission. Anticipated Completion Date: The corrective action plan will be implemented by December 31, 2026.

FINDING 2025-004 Finding Subject: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds – Allowable Costs/Cost Principles and Period of Performance Contact Person Responsible for Corrective Action: Catherine MM Lane Contact Phone Number and Email Address: 812-677-3959 clane@vincennes.in.gov Views of Responsible Officials: We concur with the findings. Description of Corrective Action Plan: The clerk’s office will work with the grant administrators and departments to assist in identifying non-compliant activities to ensure that funds are being used appropriately and according to the federal guidelines for the grant. We will consult with the relevant personnel to ensure understanding of allowable and disallowed costs as well as period of performance and help departments who may need additional training. Anticipated Completion Date: The corrective action plan will be implemented by December 31, 2026.

If we receive federal funds in the future, we will stay abreast of current and changing policies and procedures.

CORRECTIVE ACTION PLAN Reference Number: 2025-001 – Internal Control over Federal Financial Reporting Name of Contact Person: Connie Franks , CEO A blue and black logo Description automatically generated Corrective Action: Corrective Action Plan Proposed Completion Date: September 23, 2025 Context and Status of Correction Hanna’s House acknowledges the finding regarding the untimely submission of two quarterly SF-425 Federal Financial Reports. The two late reports identified in the 2025 audit occurred before the corrective actions established in response to the 2024 audit finding (2024-001) were implemented. As of September 23, 2025, Hanna’s House implemented additional procedures to improve the monitoring and tracking of federal reporting deadlines, strengthen oversight, and support the timely submission of required federal reports. These corrective actions were previously documented in Hanna’s House’s response to the 2024 audit finding. Although the prior finding included both SF-PPR and SF-425 reporting deficiencies, the corrective actions address the underlying reporting and monitoring requirements applicable to both programmatic and financial reporting. The procedures below have been implemented and remain in place. A. Reporting Responsibility and Accountability Hanna’s House has assigned responsibility for tracking federal reporting requirements, preparing required reports, and ensuring timely submission through the applicable federal reporting systems. Primary and backup staff have been assigned to provide continuity and accountability for reporting requirements, including during staff absences or transitions. Finance personnel are responsible for preparing and submitting the required SF-425 Federal Financial Reports, with executive leadership providing oversight. B. Reporting Calendar and Deadline Monitoring Hanna’s House established a federal reporting calendar to help ensure all required reporting deadlines are identified and monitored. The calendar: Includes quarterly and annual federal reporting deadlines based on the applicable Notices of Award. Establishes internal deadlines for report preparation, review, and submission. Includes automated reminders 30, 14, and 7 days before each reporting deadline. Is reviewed regularly by Finance and leadership to identify upcoming deadlines and address any potential issues in advance. C. Review and Oversight Hanna’s House has also established a review process to provide additional oversight of federal reporting. Under this process: Designated staff prepare the required reports and review the information for accuracy and completeness. Finance and executive leadership review reports prior to submission. Upcoming reporting deadlines are monitored and communicated to the appropriate staff. Quarterly compliance reviews are conducted to confirm that required reports have been completed and submitted timely. D. Ongoing Monitoring The reporting calendar, automated reminders, and supervisory review process provide ongoing monitoring of federal reporting requirements. Since these procedures were implemented, Hanna’s House has maintained timely submission of its required federal reports. This subsequent reporting history provides evidence that the corrective actions implemented in response to the prior-year finding have been effective. Hanna’s House will continue to monitor federal reporting deadlines and review compliance as part of its regular grant management process. Implementation Date and Current Status The corrective actions addressing Finding 2025-001 were implemented effective September 2025 in response to the prior-year audit finding. The two late SF-425 submissions identified in the 2025 audit occurred before these corrective actions were implemented. Since implementation, Hanna’s House has submitted its required federal reports timely, and the corrective procedures remain in place. Management considers the corrective actions associated with Finding 2025-001 fully implemented. Hanna’s House will continue to monitor the reporting process to ensure the procedures remain effective and federal reporting requirements continue to be met. Personnel Responsible for Implementation and Ongoing Oversight Connie Franks, Chief Executive Officer Corrective Action Implementation Date: September 23, 2025 Current Status: Corrective actions fully implemented.

See Corrective Action Plan table/chart.

Contact Name: Tyler Winningham Contact Phone Number: 501-450-6101 Audit Firm: Forvis Mazars, LLP Audit Period: December 31, 2025 Finding #2025-001 – Statement of Condition: Auditors reviewed the quarterly SF-425 reporting requirements for FAA grants open during fiscal year 2025 and identified that the required quarterly reports had not been submitted for Grant Nos. 3-05-0089-012-2023 and 3-05-0089-014-2025. Accordingly, the City's control over Federal award reporting did not operate effectively. Response: Management agrees with the finding and will implement a centralized grant reporting tracker that identifies reporting deadlines, assigns responsibility for preparation and review, and documents management's verification that required reports are submitted timely. The matter will be corrected by December 31, 2026.

Management has reviewed the finding above and concurs. A corrective action plan addressing the deficiencies will be completed and submitted within 60 days of the report.

Section III – Major Federal Awards Programs – Findings and Questioned Costs (Cont.) Finding 2025-010: Reporting - Insufficient Policies to Ensure Completeness and Accuracy of Reports (Material Weakness) (Cont.) Corrective Action Plan (CAP) Explanation of Disagreement with Audit Findings: There is no disagreement with the audit finding. Actions Planned in Response to Finding: Management will implement a standardized reporting checklist and will ensure that all reports undergo supervisory review and sign-off prior to submission Official Responsible for Ensuring CAP: Finance Manager will be responsible for overseeing the implementation of corrective actions. Planned Completion Date for CAP: The planned completion date is December 31, 2026. Plan to Monitor Completion of CAP: Management will conduct quarterly reviews of submitted reports and related documentation.

The City concurs with this finding and will strengthen controls over federal award reporting by reviewing previously reported ARPA expenditures against the City’s accounting records and supporting documentation and submitting corrections, as necessary; implementing a documented quarterly reconciliation and independent review process requiring reports to be reviewed by an individual other than the preparer prior to submission; maintaining supporting documentation for expenditure allocations and classifications; establishing written procedures for federal award reporting; and providing additional training to staff responsible for grant reporting to help ensure compliance with federal reporting requirements.

Plan of Action: The District will strengthen internal controls over the preparation, review, submission, and retention of monthly child nutrition reimbursement claims. Recent staffing changes within the Food Services Department will support more efficient and consistent monitoring of claims. The District will provide training to employees responsible for meal count reporting and reimbursement claims, establish a documented review process prior to claim submission, and implement procedures to ensure that all required supporting documentation is maintained and readily available for audit. 1.The Food Service Supervisor will provide training to all staff responsible for meal counting, meal count reconciliation, claim preparation, and claim submission. 2.The Food Services Supervisor or designated reviewer will independently review each monthly reimbursement claim before submission to the state reporting system. 3.Food service staff will reconcile daily meal counts and differences will be investigated and resolved before the claim is submitted. Responsible Party: Food Services Supervisor Timeline for Implementation: Within 60 days: Implement review and reconciliation procedures Ongoing: Monthly reconciliations and periodic staff training Monitoring: Documentation of the following information will be kept to ensure compliance: Montly reconciliations Staff Training Written claim procedures Copies of submitted claims

Inaccurate Federal Reporting - AIP - MDT - The Montana Department of Transportation will be reviewing and updating its SF425 and SF270 procedures and adding a secondary review. This process began in January 2025, and the updated procedure will be completed by December 2026. Responsible Party - Kimberly Doherty, Accounting Systems Supervisor, Montana Department of Transportation Target Implementation Date - 12/31/2026

FINDING 2025-001 Reporting – Late Submission of SF-425 Federal Program / ALN: 93.092 / Personal Responsibility Education Innovative Strategies (PREIS) Type of Finding: Significant Deficiency in Internal Control over Compliance (Reporting) Questioned Costs: N/A Repeat Finding: No Corrective Action Planned: Management will implement the following corrective actions: establish and maintain a formal federal grant reporting calendar that identifies all SF-425 due dates for Assistance Listing Number 93.092 and other federal awards; assign primary responsibility for the preparation and submission of SF-425 reports to designated grants personnel, with mandatory review and approval by the Fiscal Manager prior to submission; and incorporate SF-425 reporting deadlines into the monthly grant compliance checklist, with documentation of actual submission dates. Official Responsible for Corrective Action: Latisha Kenon, Fiscal Manager Anticipated Completion Date: The planned completion date is December 31, 2026. Views of Responsible Officials: Management agrees with the finding. The late submissions of the required SF-425 Federal Financial Reports resulted from insufficient awareness of the specific reporting deadlines. Management will implement a formal federal grant reporting calendar and assign monitoring responsibility to designated grants compliance personnel. The corrective actions will be fully implemented by the Organization and will be monitored on an ongoing basis.

Reporting – Financial and Performance Assistance Listing Number 14.251 – Economic Development Initiative, Community Project Funding, and Miscellaneous Grants U.S. Department of Housing and Urban Development (HUD) Federal Award Identification Number(s): B-22-CP-CO-0165 and B-23-CP-CO-0280 Award Year – 2022 and 2023 Condition: During testing, it was noted that the semiannual performance reports required to be submitted during calendar year 2025 were not submitted by the required deadlines. The reports, which were due in January 2025 and July 2025, were not submitted until September 2025. As a result, the Grantee did not submit required financial and performance reports within the timeframe prescribed by the grant agreement and 2 CFR §§ 200.328 and 200.329. Additionally, management could not provide evidence of review for one of the reports. Planned Corrective Action: Departments that administer grants will establish and maintain a grant tracking process to identify required reporting, due dates, and personnel responsible for the completion and review of the required reporting. This tracking process will be documented and shared with the Controller’s Office. In addition, Departments will maintain documentation of the review and approval of reports as part of the grant documentation. City of Aurora Responsible Party: Stephanie Keiper, Homelessness Division Manager; Matthew Kipp, Manager of Business Services; Tim Sherbondy, Grant Compliance Officer; and Tyra Litzau, Controller Anticipated Completion Date: March 31, 2027

Grant Reporting (SF-425 Submissions) Federal Agency Name: Department of Agriculture / Forest Service Assistance Listing Number: 10.720 (Infrastructure Investment and Jobs Act Community Wildfire Defense Grant) Finding Summary: Federal expenditures reported on Line 10e of the quarterly Federal Financial Reports (SF-425) did not reconcile directly to the Cooperative’s general ledger records for the applicable reporting period, resulting in an understatement of reportable expenditures for that period. Views of Responsible Officials & Management Response: Management disagrees with the finding as a Material Noncompliance and Material Weakness. Management acknowledges a timing discrepancy existed between quarterly filings and standard accrual rules, but maintains this matter does not constitute material noncompliance or a material weakness for the following reasons: 1. Reliance on Explicit Federal Directives: While management acknowledges Uniform Guidance under 2 CFR 200 requires financial reporting to align directly with accounting records, the Cooperative prepared and submitted the SF-425 reports in strict good-faith compliance with explicit, written instructions provided by the Forest Service’s Grant Department. See Exhibit B. Seeking out, receiving, and adhering to written directives from the federal oversight agency demonstrates a strong culture of compliance and an active effort to align with funder expectations, rather than a disregard for federal reporting statutes. 2. No Financial Risk or Loss of Funds: All underlying grant expenditures were valid, allowable, and verified. No questioned costs were identified. Because the reporting timing discrepancy was a direct result of following the awarding agency’s specific written guidance, management maintains this does not constitute a systemic control failure. The understatement in expenditures is directly related to a timing issue, resulting in zero financial risk to the federal government. Corrective Action Planned: Management has implemented formal control enhancements covering both grant reporting schedules and contract administration: o Revised Report Timing & Reconciliation Controls: To resolve the conflict between agency-specific guidance and independent audit standards, management has updated the operational timing and preparation method for Form SF-425. All future quarterly reports will be generated directly from general ledger accrual records strictly as of the quarter-end date. The SF425 and SF270 forms will be submitted separately in an effort to mitigate the timing issue. This updated timeline satisfies requirements for accrual reporting while providing an auditable submission trail for the granting agency. Responsible Person(s): Stacie Dellamano, Chief Financial Officer Anticipated Completion Date: December 31, 2026 Exhibit B From: Fusselman, Sarah - FS, ID Sarah.Fusselman@usda.gov Sent: Friday, July 17, 2026 10:09 AM To: Katie Dalton Subject: Re: [External Email]SF 425 Question for Grant 24-DG-11010013-052 Attachments: Grant Reminders for State, Private & Tribal Forestry R1 R4.pdf; POST AWARD Training2025.pptx Hi Katie, Please review the attached documents that outline how to properly complete the SF-425. I’m also including a helpful training video provided by the U.S. Fish and Wildlife Service: Please keep in mind that in the past, as the GMS for this award, I was able to piece together Flathead Electric’s reporting approach and document why certain entries were allowable on earlier SF-425 submissions. Going forward, because some quarters are busier than others, additional Forest Service administrative staff help manage the reporting inbox. They review SF-425s closely, and since fewer than three cooperators out of more than 500 awards submit the SF-425 and SF-270 simultaneously, these submissions will continue to be questioned. When the SF-425 shows an expenditure as “received” during the same period in which the SF-270 was just submitted, FS staff will request corrections from Flathead Electric each time. Additionally, with the upcoming FS reorganization, I may not remain the point of contact for this award. Future reviewers will need Flathead Electric to clearly explain its accounting methodology every reporting cycle. Please have Flathead Electric’s auditor reach out to my supervisor, Kamie Vaux, at kami.vaux@usda.gov so that the Forest Service can better understand what clarification the auditor is seeking. Thank you, and please let me know if you need anything additional. Sarah Fusselman Grants Management Specialist Forest Service State, Private & Tribal Forestry, Region 1 & 4 c: 208-479-3095 sarah.fusselman@usda.gov Exhibit B Continued From: Vaux, Kamie - FS, UT <kamie.vaux@usda.gov> Sent: Tuesday, July 28, 2026 9:18 AM To: Katie Dalton; Kathryn Eigenberg Cc: Stacey Nelson; Stacie Dellamano Subject: RE: [External Email]RE: Form 425 Reporting Good morning, Thank you for the detailed explanation. Yes—your understanding is correct, and the information you outlined aligns with Forest Service expectations. As we discussed, the timing differences between the quarterly SF-270 and SF-425 submissions naturally affect line 10e, and the values you’ve reported previously are exactly what we would expect to see. Adjusting the submission timing as you described may help reduce the variance, but we recognize that invoice timing will not always allow for that approach. And you’re also right that lines 10a, 10b, and 10c are generally not required for this program, and when they are included, they are not reviewed by the Forest Service. Please let me know if any additional clarification would be helpful—I’m happy to assist further. Thank you, Kamie Kamie Vaux Supervisory Grants Specialist Forest Service State, Private & Tribal Forestry Region 1 and Region 4 c: 385-278-3255 kamie.vaux@usda.gov 324 25th Street Ogden, UT 84401

Views of Responsible Officials and Planned Corrective Action: Management acknowledges that the Federal Financial Report (FFR) was not submitted within the required 90-day timeframe, resulting in noncompliance with the reporting requirements of the grant agreement. While the organization maintained a centralized system for tracking reporting deadlines and conducted regular cross-functional coordination between Program, Finance, and Compliance teams, management recognizes that controls over monitoring and escalation were not sufficiently rigorous to ensure timely submission in all instances. This occurred during a period of elevated staffing transition, which contributed to a lapse in the consistent execution and monitoring of reporting timelines; however, management recognizes that controls should be sufficiently robust to operate effectively regardless of personnel changes. Upon identification of the delay, management evaluated the underlying processes and determined that enhancements were needed to strengthen accountability, improve visibility of critical deadlines, and ensure timely followthrough. Management notes that this condition was limited to the timeliness of submission and did not impact the accuracy of the report or result in questioned costs. Management has since reinforced its reporting oversight by enhancing coordination across responsible teams, clarifying ownership of deliverables, and strengthening internal monitoring practices. This includes implementing more structured tracking of key reporting deadlines, reinforcing expectations around advance preparation and review, and increasing senior-level oversight to ensure that upcoming deadlines are proactively managed and met. In addition, management has emphasized timely escalation of potential delays to ensure corrective action can be taken prior to due dates. Management believes these enhancements address the control gaps identified and significant reduce the likelihood of recurrence. Reporting timelines are now more actively monitored as part of ongoing financial and compliance operations, and management will continue to assess the effectiveness of these processes to ensure adherence to grant requirements and compliance with applicable regulations, including 2 CFR Part 200.

The Morgan County Economic Development Office acknowledges the status and final reports for the CDBG and Home grant programs must be submitted by the required due dates. The office will actively monitor all deadlines and ensure that all reports are completed and submitted in a timely manner in accordance with those requirements.

Due to the organization’s transition period, the reports were submitted late. After the new Finance Director started in June 25, 2025. In January 30, 2026, we received system access, all reports were submitted on February 4, 2026. This matter was presented in the most recent focus Area II monitoring by the Agency, with no complaints noted. We will request additional system access for reporting purposes in case the person responsible is unavailable. Contact Person: Carlos Rivera Nora Boschetti Team: Finance Team Anticipated Completion Date: September 30, 2026

We recognize that due to the volume of report and transaction, these two reports were not issued as required. Steps have been taken to avoid this situation happening in the future, which includes preparing schedule reports, establishing datelines and hiring additional finance personnel to work with the required reports. Contact Person: Paul Barrera Roxana Rivera Team: Finance Team Anticipated Completion Date: September 30, 2026

Management agrees with the finding. The report was submitted late due to an oversight. Management has reviewed the reporting requirements and established a tracking process to ensure that required reports and their due dates are monitored. Responsibility for each report has been clearly assigned, and management will review the status of upcoming submissions to help ensure that reports are submitted timely. Management will continue to monitor compliance with reporting deadlines and take appropriate action if a potential delay is identified. Person responsible for Corrective Action: Sonya Birdshead, Executive Director. Anticipated Completion Date: August 31, 2026

2025 – 003 Community Development Block Grant (CDBG) – Assistance Listing 14.218 – Reporting Name of Contact Person Responsible for Corrective Action Plan: Wanzina Jackson, Economic and Community Development Director Corrective Action Plan: Management will implement a process to ensure all required reports are submitted as required in a timely manner. Anticipated Completion Date: Fiscal year 2026

The Town of Highgate has endured a significant amount of turnover in the Town Administrator's role. This reporting was a task of the Town Administrator. The Town Treasurer was unaware that the SF-425 reports for the Town's active grant awards were not being filed in a timely fashion. The newly appointed Town Administrator has been made aware we are required to file the SF-425 when a grant award mandates the submission. Corrective action has began, the Town Administrator and Treasurer have been working together to get in compliance with our required reporting across all State and Federal Agencies that have awarded the Town grant funds. Trainings have taken place and the newly hired Administrator is aware of the required reporting and is able to perform this task on time when required.

Onvida Health will establish an echelon of staff for reporting in the grant policies and procedures manual that will cover gaps when turnover happens to key staff assigned. Multiple staff will and have been assigned to each grant portal to ensure that communication efforts and deadlines between grantee and YRMC/Onvida Health allow for multiple communication to be received in the event of any staffing changes and reporting can still be completed without delays. The Federal financial report was submitted as soon as access was given by HRSA. No correspondence came from HRSA to reference a late filing. Onvida Health is in the process of changing over the project director assigned to this grant on the HRSA EHB site for the performance reports. Only HRSA staff can update these records/access to individual grants. We have been delayed in this process due to a government furlough in place, no response to numerous Onvida Health emails to HRSA grant awarding agency contacts and phone messages were left for return correspondence. Responsible Official: Dana Alexander, Controller Completion Date: Any outstanding items not already completed that are listed in the corrective action plan, will be completed by an estimation date of October 1, 2026.

The District concurs with the finding. Although the District's review process identified corrections, the process did not require a final verification that all reviewer comments had been incorporated into the version submitted. The District will take the following actions: 1. Require the preparer to reconcile reported expenditures to the general ledger, reimbursement requests or invoices, and relevant project records before submitting the report for review. The reconciliation will be retained with the report. 2. Use a version-controlled Quarterly Report Review Checklist and corrections log that identifies each reviewer comment, the required correction, the preparer's disposition, and the date completed. 3. Require the preparer to certify that all review comments have been resolved and incorporated into the final report. 4. Require the independent reviewer to perform and document a final comparison of the approved report to the reconciliation and corrections log. No report may be submitted until the reviewer has marked the final version 'Approved for Submission.' 5. Retain the signed checklist, reconciliation, corrections log, approved final report, and proof of submission. The Finance Manager will periodically review grant-reporting files to verify that the control is operating as designed. Person Responsible for Corrective Action: William Clayton, Finance Manager Anticipated Completion Date for Corrective Action: September 30, 2026. Final reviewer approval and document-retention controls will be effective immediately, with the revised checklist, written procedures, and staff training completed by this date.

The District concurs with the finding. Following the 2024 Single Audit, the District assigned separate report preparation and review responsibilities and implemented a report review checklist. However, the procedures did not include a comprehensive mechanism for tracking recurring, final, and closeout reports or a requirement to resolve uncertain reporting obligations sufficiently in advance of the deadline. The District will take the following actions: 1. Establish and maintain a Grant Reporting Requirements Matrix and calendar for each federal award and pass-through grant. The matrix will identify each recurring, final, and closeout report; the applicable grant provision; reporting period; due date; submission method; assigned preparer; assigned reviewer; and evidence of submission. 2. Set documented reminder dates in advance of each deadline and require the assigned preparer to confirm, for every reporting period, whether a report is required. Final and closeout reporting requirements will be reconfirmed before project completion. When a requirement is uncertain, the District will request written clarification from the grantor or passthrough entity as soon as the uncertainty is identified. Unless written confirmation is received that a report is not required, the District will prepare and submit the report. 3. Require the Finance Manager or designated supervisory reviewer to review the reporting calendar at least monthly while an award is active and to verify completion of each required submission. 4. Retain the completed review checklist, approved report, supporting documentation, correspondence concerning reporting requirements, and proof of timely submission in the grant file. 5. Incorporate these controls into written grant-reporting procedures and provide training to staff assigned to federal award administration. Person Responsible for Corrective Action: William Clayton, Finance Manager Anticipated Completion Date for Corrective Action: September 30, 2026. The reporting matrix, advance reminders, and supervisory monitoring will be used immediately for all open federal and pass-through awards, with written procedures and staff training completed by this date.

Finding 2025-002: Insufficient Documentation of Management Review of Section 3 Quarterly and Annual Reporting Planned Corrective Action: Management concurs with the finding. Although the related grant concluded during fiscal year 2025, the City will implement procedures to ensure that future federal program reports, including any applicable Section 3 or similar compliance reports, are subject to documented management review and approval prior to submission. The procedures will require the preparer to provide each report and supporting documentation to City management for review, and evidence of approval, such as a signed review checklist, email approval, or electronic sign-off, will be retained in the grant files. The City Secretary will be responsible for ensuring that documented review and approval procedures are applied to future federal reporting requirements. Anticipated Completion Date: July 2026