Corrective Action Plans

2026-001 Period of Performance Corrective action planned: The organization will implement an additional step to review personnel cost categories that may have the potential of including out-of-period costs (e.g., performance bonus payments, contractual lump sum payments) and verify that these expenses are allocated to the correct award cycle. If out-of-period transactions are identified, the organization will ensure that these expenses are allocated to unrestricted general operating funds. Anticipated completion date: October 2026 Contact person responsible for corrective action: Harjeet Sidhu, Chief Financial Officer

Corrective Action Planned: The Organization has implemented revised procedures to strengthen controls over the allocation of payroll costs charged to federal awards. Effective January 1, 2026, payroll costs charged to grants are calculated directly from employee labor hours recorded in the Organization's timekeeping system and are allocated using each employee's applicable rate of pay. Under the revised process, payroll allocations are prepared using detailed labor reports that support the hours charged to each grant. Supporting documentation is maintained for each grant allocation and is reviewed monthly prior to invoicing or charging costs to the grant. The review process includes verification that labor hours charged to the grant agree to timekeeping records and that payroll costs are calculated using approved pay rates. Management believes these revised procedures provide a consistent and documented methodology for allocating payroll costs and will help ensure payroll expenditures charged to federal awards are adequately supported, accurately calculated, and in compliance with applicable grant requirements. Anticipated Completion Date: Implemented as of January 2026. Name of Contact Person Responsible: Shelley Riser, President and Chief Executive Officer (717) 761-6443

2026-003 Period of Performance (repeat of finding 2025-003) Corrective action planned: The former CEO of OMC did not understand Generally Accepted Accounting Principles and, specifically, Accrual Accounting. He did not allow the Accounting Department to make accrual entries monthly. At the beginning of FY 2026 - 2027, the CFO/DFO required the accrual of payroll each month to accurately reflect the personnel expense of OMC. OMC accounting staff will utilize the Sage Impact® Accounting System to accrue other expenses that were incurred in the period but not yet paid, so that only cost for goods and/or services incurred within the approved budget period are reflected accurately in monthly financial reporting and costs are not allocated outside the budget period. The CFO/DFO has developed an accrual template so that utility bills that cross periods, such as one example in this report, are properly accounted for and allocated to the correct period. This will also be monitored by the external independent financial consultant and the CEO who is a degreed accountant. Anticipated completion date: 08/31/2026 Contact person responsible for corrective action: Allen Boyd, Director of Fiscal Operations

Finding No. 2026-001: During testing of allowable costs for Major Program 93.912, one instance was identified in which payroll benefit costs charged to the federal award were overstated by $383 due to an error in the calculation of payroll-related benefits associated with an individual employee. As a result of the exception identified during audit testing, we performed additional procedures over the affected population and determined that an incorrect payroll base had been used in calculating benefit allocations charged to federal awards for certain employees for which payroll and benefits are allocated to federal programs. We identified unsupported payroll benefit costs and indirect costs charged to the following federal programs: Program 93.912-$15,046; Program 93.387-$1,901; and Program 93.889-$29,718, for total questioned costs of $46,665. We intend to return these funds to the grantor agencies. Accordingly, the $46,665 of unsupported costs was removed from expenditures reported on the Schedule of Expenditures of Federal Awards, and no known questioned costs are reported in the Schedule of Findings and Questioned Costs. Corrective Actions Planned: A simplified report has been identified that will reduce the risk of calculation errors. This report will be used for all future calculations related to payroll-related benefits for grants. Responsible Party: Karla Dillow, Assistant Director of Accounting Target Completion Date: March 31, 2027

In response to this finding, management will take the following actions. 1. Establish a process to review significant or uncertain compliance recommendations with the grantor and document the guidance received before implementation or reimbursement submission, as applicable. 2. Train applicable City personnel on grant requirements and revised compliance procedures.

Finding 2025-003 AL number: 10.561 AL title: Supplemental Nutrition Assistance Program Federal award or contract: FFY 2026 SNAP Employment and Training Contract No. 26 IHGA 202955 Questioned costs: None Torch Technology Solutions, a subsidiary of CrossPurpose, and charged amounts to the FFY 2026 SNAP Employment and Training Program for compliance and reporting, finance and cost allocation, program delivery, technology infrastructure, and participant-support functions. The Organization did not retain sufficient documentation to demonstrate that the amounts billed represented actual costs incurred during the applicable periods, were necessary and reasonable for the federal award, were directly attributable to program administration or participant services, or were allocated using a reasonable and documented methodology. Torch Technology Solutions also lacked sufficient documentation for certain subcontractor and service-provider expenditures. Available records did not adequately demonstrate the services provided, when they were performed, the benefit to the federal program, or the allocation methodology. Certain gift card payments also lacked documentation showing participant need, redemption, and allowable program-related use. The Colorado Department of Human Services identified similar concerns in its fiscal management evaluation. Management recorded a liability for the repayment obligation, reversed the related program revenue, and excluded the associated costs from the Schedule of Expenditures of Federal Awards. The Organization subsequently terminated its Employment First Program contract with Torch Technology Solutions, terminated the staff, and ceased operations. The Organization returned $283,425 requested in connection with the State's findings. Corrective Action Plan Management agrees with the finding. CrossPurpose has developed a process to review any future reimbursement requests submitted by subsidiaries and require supporting documentation showing that the costs are allocable, reasonable, necessary, and connected to benefits provided to eligible participants. For Torch Technology Solutions, all employees were terminated effective May 15, 2026, and the Organization terminated the subsidiary's contract with the Department. The Organization fulfilled the Department's requests arising from the fiscal management evaluation, returned $283,425, and ceased all operations of the subsidiary.The closure of Torch Technology Solutions is disclosed as a subsequent event in the notes to the financial statements. As of now, there are no existing grant awards held by subsidiaries. Anticipated completion date: May 15, 2026

Finding 2025-002 AL number: 10.561 AL title: Supplemental Nutrition Assistance Program Federal award or contract: FFY 2026 SNAP Employment and Training Contract No. 26 IHGA 206885 Questioned costs: $412,100 The Department-approved Employment First Program Operator Plan incorporated into Contract No. 26 IHGA 201182 included a Launch licensing materials cost of $2,600 per participant. The plan described the participantbased fee and related services, and the executed contract incorporated the methodology. Related budget documents also contemplated billing at established component rates rather than reimbursement based solely on actual costs incurred. The Organization billed $412,100 under the participant-based licensing methodology. Based on the approved plan, supporting budget schedules, and executed contract, management believed the methodology was approved by the Department, was reasonable and necessary, and complied with program requirements.After the program began, the Organization engaged with a reputable independent firm to perform a transferpricing and fair value study to evaluate and support the methodology and contribute the technology to a separate legal entity. The Colorado Department of Human Services later questioned whether the retained documentation adequately supported the participant-based fee and the allocation of charges to the federal program. The Department had approved invoices and reimbursed these costs before raising concerns during its fiscal management evaluation. Management recorded a liability for the amounts identified by the State pending final resolution. Corrective Action Plan Management has established a separate legal entity to hold the technology associated with these charges. On May 4, 2026, before the fiscal management evaluation, management engaged an accounting firm to benchmark the fee and independently evaluate the participant-based pricing methodology. Management is also working to value the developed technology for contribution to the separate legal entity. Although documentation was retained, management has developed a plan to enhance the documentation supporting the methodology under federal cost principles. The enhanced records will describe the basis for the participant fee, the supporting assumptions and analyses, and the benefit received by the federal program. Anticipated completion date: October 30, 2026

Finding 2025-001 AL number: 10.561 AL title: Supplemental Nutrition Assistance Program Federal award or contract: FFY 2026 SNAP Employment and Training Contract No. 26 IHGA 206885 Questioned costs: $155,141 During the audit, the Organization reported $155,141 of contractual expenditures under the FFY 2026 SNAP Employment and Training Program. The expenditures primarily related to technology, outsourced IT support, operations, consulting, and other program support provided by third-party service providers and contractors. The Organization retained invoices and supporting records, but the documentation did not provide enough detail to demonstrate how certain contractual costs were allocated to eligible participants of the federal program, and whether time-and-effort records, utilization metrics, or other records supported the charges. Management submitted an Employment First Program Operator Plan to the Department at the beginning of the contract including the estimated contractual costs, but did not retain documentation showing whether the selected contractors were communicated to or approved by the Department as modifications to the approved plan. The Department had approved invoices and reimbursed these costs before raising concerns during its fiscal management evaluation. Management recorded a liability for the amounts identified by the State pending final resolution. Corrective Action Plan CrossPurpose has implemented a revised cost allocation plan consistent with federal cost principles. Because the Organization serves people throughout Denver neighborhoods regardless of eligibility for government benefits, certain shared costs cannot always be tied directly to eligible participants. The revised plan pools those costs and allocates them based on eligible participants as a proportion of total participants served, using participant data the Organization already tracks. CrossPurpose has also implemented a process to review contractors whose costs are charged to grants and confirm that each contractor has completed the applicable approval process required by the grant before reimbursement requests are submitted. Anticipated completion date: August 1, 2026

HSDD management is committed to strengthening internal controls over participant eligibility documentation, HAP payment support, annual reexaminations, rent-reasonableness determinations, and HUD-50058 reporting. These efforts will include reviewing the identified exceptions, working to retrieve any outstanding documentation from prior records or service providers, enhancing supervisory oversight, and providing additional training to program personnel. HSDD management recognizes the documentation deficiencies identified during the audit, the absence of supporting documentation does not necessarily establish that the underlying participants were ineligible or that HAP payments were improperly calculated. Accordingly, management intends to review the identified exceptions and work with the appropriate parties to resolve questioned costs in accordance with HUD's final management decision. HSDD management, specifically its Director Dorian Rawles, remains committed to implementing corrective actions designed to improve documentation retention, strengthen program compliance, and reduce the likelihood of similar findings in future reporting periods.

FA 2025-002 Strengthen Controls over Expenditures Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass- Through Entity: Assistance Listing Numbers and Titles: Federal Award Number: Questioned Costs: Activities Allowed or Unallowed Allowable Costs/Cost Principles Significant Deficiency Nonmaterial Noncompliance U.S. Department of Agriculture Georgia Department of Education 10.553 - School Breakfast Program 10.555 - National School Lunch Program 255GA324N1199 (Year: 2025) $36,927 Description: A review of employee compensation expenditures and journal entries related to the Child Nutrition Cluster revealed that the School District’s internal control procedures were not operating appropriately to ensure that employee compensation and journal entries were appropriately reviewed, approved, and documented. Corrective Action Plans: The School District will strengthen internal controls to ensure that employee compensation and journal entries charged to the Child Nutrition Cluster are properly reviewed, approved, supported, and documented. • Review and document procedures for processing and allocating employee compensation charged to the Child Nutrition Cluster. • Require appropriate supervisory review and approval of employee compensation, including time and effort documentation, payroll allocations, and related supporting documentation. • Establish a documented review and approval process for journal entries affecting Child Nutrition funds, including verification of account codes, amounts, supporting documentation, and proper authorization. • Provide training to Finance and Child Nutrition personnel on payroll documentation, allowable costs, journal entries, and federal grant requirements. • Conduct periodic reviews of payroll expenditures and journal entries to ensure required approvals and supporting documentation are maintained and any errors are identified and corrected timely. Estimated Completion Date: June 30, 2027 Contact Person: Kimberly Harrison Telephone: 912-427-1000 Email: kharrison@wayne.k12.ga.us

Finding 2025-003 — LIHEAP Allocation of Multi-Period Costs (DocuSign) Description of Finding: The preliminary audit reports that a full annual DocuSign subscription expense was charged to the LIHEAP grant period January 1 through December 31, 2025, although the subscription term extended beyond that period. The finding cites $25,641 in tested expenditures and indicates that $15,385 could have been charged outside the authorized period of performance. The auditor designates the matter a repeat of 2024-004. Statement of Concurrence: Management concurs with the recommendation that prepaid subscriptions and other multi-period expenditures be allocated to the periods receiving the benefit and charged only to eligible award periods. Corrective Action: WCAI implemented procedures during 2026 to review subscription agreements and multi-period service contracts before posting costs to grants. Prepaid or multi-period costs are to be recorded on a supporting schedule, allocated over the benefiting service period, and expensed monthly. Accounting staff will verify award eligibility and period of performance before charging grant funds, and will document any required correction or reallocation identified through review. Responsible Party: Accounting Manager, with review by the Chief Financial Officer. Implementation Status / Timeline: Implementation began during the FY2024 audit process, was formalized by April 2026, and was targeted to be fully operational by May 2026 under the FY2024 plan; ongoing review. Monitoring and Evidence: Subscription contracts and invoices; prepaid expense amortization schedules; award-period verification; monthly reconciliations; review and approval of any correcting entries. Any grant-specific resolution of the cited amount should be documented separately.

Finding Number: 2025-033 Finding Name: Improper TANF Beneficiary Payments Finding Condition(s): The Illinois Department of Human Services (IDHS) made improper payments to beneficiaries of the Temporary Assistance for Needy Families (TANF) program. The auditors also noted that one TANF beneficiary payment was improperly calculated due to a diverted income system error. Further, the auditors noted that the IDHS did not establish control procedures at an adequate level of precision to ensure TANF program benefits were accurately calculated based on the beneficiary’s case file supporting documentation. Name of Contact Person(s): • Elizabeth Lusk, Social Service Program Planner – Illinois Department of Human Services, Family and Community Services • Kasey Reagan, Division Director – Illinois Department of Human Services, Family and Community Services Corrective Action(s): The IDHS reviewed its current process for calculating beneficiary payments and make changes necessary to ensure payments are properly calculated and paid. Furthermore, Temporary Assistance for Needy Families (TANF) training was provided in 2026 to address policies and procedures. Additionally, monthly communications have been established by the Associate Director for the Office of Family and Community Resource Centers (FCRCs) to ensure TANF reviews are prioritized and findings are addressed. Finally, agency leadership has scheduled needed system enhancements. The IDHS has noted the following actions for implementation: • A repair ticket has been issued and will be released in the Illinois Eligibility System (IES) on the diverted income error. The original ticket was combined with a larger TANF budgeting ticket to ensure all factors are functioning in accordance with policy. This ticket is currently awaiting a final release date. (Proposed Completion Date: 08/31/27) • An IES enhancement will be implemented to allow telephonic signatures for TANF Responsibility and Service Plans (RSPs). This will eliminate the need to use a paper process. (Proposed Completion Date: 03/31/27) • TANF training was released in April 2026 to all staff to ensure proper documentation for TANF programs, specifically targeting the RSP signatures and child support documentation rules and regulations. (Completed as of 04/30/26) • Regional Administrators will discuss TANF review trends and RSP signature errors with their Local Office Administrators (LOAs) monthly during their regularly scheduled LOA meeting or via email to ensure ongoing priority is given to this matter. (Proposed Completion Date: 12/31/26) • Regional Administrators will track the number of TANF completed reviews for the 4th quarter of 2026, and then again in 1st quarter of 2027, to compare date trends. Specifically, they will note the number of correct cases and the number of reviewed cases missing RSP signatures (Proposed Completion Date: 12/31/26) Proposed Completion Date: August 31, 2027

Finding Number: 2025-031 Finding Name: Unallowable Costs Charged to the TANF and CCDF Cluster Programs Finding Condition(s): The Illinois Department of Human Services (IDHS) could not provide documentation to support payments made on behalf of beneficiaries of the Temporary Assistance for Needy Families (TANF) and the Child Care and Development Fund (CCDF) Cluster programs. The auditors also noted that the IDHS does not have adequate controls in place to ensure billing information from providers is accurate and the IDHS does not obtain source documentation (certified attendance records) for child care billings and did not obtain them for our audit procedures. Name of Contact Person(s): Maureen Bilek, Audit Compliance and Programmatic Monitoring Administrator – Illinois Department of Human Services, Division of Early Childhood Corrective Action(s): The IDHS has started to implement corrective actions to obligate and liquidate CCDF grant funding within the applicable period of performance and to strengthen internal controls related to Child Care Assistance Program (CCAP) payments. These corrective actions include the following: • Develop and implement internal procedures to conduct quarterly reviews of billing certificates for payments entered through the Interactive Voice Response (IVR) system. (Completed as of 04/30/26) • Assess existing deliverables, CCAP policy, and CCDF State Plan responses related to IVR payments and determine and implement any necessary revisions. (Completed as of 06/30/26) • Develop external guidance for providers and Child Care Resource and Referral (CCR&R) agencies outlining IVR payment requirements, documentation standards, record-retention expectations, and the review process. (Completed as of 03/09/26) • Initiate and continue implementation of a communication plan to announce upcoming reviews, including the Service Employees International Union (SEIU), the Illinois Department of Early Childhood (IDEC), the CCR&R agencies, and all providers utilizing the IVR. Additional communications will be issued as the process is refined. (Completed as of 04/09/26) • Commence IVR payment reviews in June 2026 and continue a quarterly basis. (Completed as of 09/30/26) • Establish and maintain a master tracking log of provider reviews by year, subject to management review and oversight. (Completed as of 03/15/26) • Develop a centralized tracking tool identifying each grant’s period of performance, obligation deadline, liquidation deadline, and extension requirements. (Proposed Completion Date: 06/30/27) • Establish written procedures requiring monthly review of grant obligations, expenditures, and remaining grant balances, including documented management review. (Proposed Completion Date: 06/30/27) • Implement a notification and escalation process requiring program and fiscal management to be notified when a grant is within six months of its obligation or liquidation deadline. (Proposed Completion Date: 06/30/27) • Provide training to fiscal and program staff responsible for grant administration on federal period of performance, including obligation and liquidation deadlines, extensions, and new tracking and escalation procedures. (Proposed Completion Date: 09/30/27) Proposed Completion Date: September 30, 2027

Finding Number: 2025-028 Finding Name: Inadequate Process to Communicate Award Information to Subrecipients Finding Condition(s): The Illinois Board of Higher Education (IBHE) does not have an adequate process in place to ensure required award information is accurately communicated to subrecipients of the Child Care and Development Fund (CCDF) Cluster (CCDF Cluster) program. Name of Contact Person(s): • Rebecca Heath, Assistance Chief Accountant - Illinois Board of Higher Education • Bill McCarty, Chief Financial Officer - Illinois Board of Higher Education Corrective Action(s): The IBHE is updating its grant procedure manual, adding a provision to ensure that the IBHE has an adequate process in place to ensure required information is accurately communicated to subrecipients of federal grant programs. Proposed Completion Date: September 30, 2026 – Complete

Finding Number: 2025-024 Finding Name: Failure to Provide Supporting Documentation for Payroll and Related Costs Finding Condition(s): The Illinois Department of Children and Family Services (DCFS) could not provide adequate supporting documentation to substantiate payroll and related costs claimed for federal reimbursement under the Foster Care – Title IV-E (Foster Care), Adoption Assistance, and Temporary Assistance for Needy Families (TANF) programs. Additionally, the auditors noted that the controls to ensure required documentation is obtained to support payroll and related costs and maintained to evidence management approval of payroll information were not operating effectively. Finally, the auditors also noted that adequate internal controls have not been established to ensure the data included in the timekeeping system and used to allocate personal services expenditures to Foster Care, Adoption Assistance, TANF, and other programs operated by the DCFS is consistent with the hours reported on manual timesheets prepared by the employees and approved by supervisor. Name of Contact Person(s): • David Riley, Payroll Administrator – Illinois Department of Children and Family Services • Sarah Tucker, Associated Chief Fiscal Officer – Illinois Department of Children and Family Services • Kiersten Neswick, Chief Fiscal Officer – Illinois Department of Children and Family Services Corrective Action(s): The new quality controls, introduced in October 2024, have helped to identify and correct errors, but system modernization is needed to be fully implemented. The DCFS is working with the Illinois Department of Innovation and Technology (DoIT) and the Illinois Department of Central Management Services (CMS) to implement the systems to shift to electronic timesheets. The DCFS intends to begin using the CMS’ Central Payroll System with eTime. Proposed Completion Date: June 30, 2027

Activities Allowed or Unallowed; Allowable Costs/Cost Principles Management Response: Management acknowledges this finding. The audit identified deficiencies in payroll authorization and labor-cost allocation, including missing supervisory approval and insufficient documentation supporting the allocation of payroll costs among federal programs. The finding resulted in $84,685 of questioned costs. Corrective Action: Nevadaworks will review and strengthen its existing payroll authorization and labor distribution procedures to ensure compliance. 1. All employees will complete time and activity records that accurately reflect work performed. 2. Employees charging time to federal programs will identify the appropriate grant/program allocation. 3. Supervisors will review and approve employee time records before payroll is processed. 4. Payroll allocations will be based on documented and supportable methodologies consistent with the employee’s actual work performed and approved cost allocation plan. 5. Finance will reconcile payroll charges to approved time/activity records on a monthly basis. 6. Any allocation changes or corrections will be documented and approved. 7. Finance will perform periodic reviews of payroll allocations for reasonableness and consistency with grant requirements. 8. Management will evaluate the questioned costs identified by the audit and coordinate with the applicable funding agency regarding any required repayment, adjustment, or other resolution. Responsible Party: Finance Manager/Controller with Program Management oversight. Target Completion: The revised payroll approval and allocation procedures will be implemented immediately and maintained on an ongoing basis. Monitoring: Finance will perform monthly payroll allocation reviews and quarterly compliance testing. Results and corrective actions will be documented and retained.

FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Finding No. 2025-002: Payroll Costs Charged to Federal Awards Were Not Supported by Actual Time and Effort Documentation - Material Weakness Condition and Context During testing of payroll expenditures charged to the Education Innovation and Research Program (ALN 84.411), exceptions were identified where payroll costs allocated among funding sources were not supported by documentation reflecting actual time and effort performed. Specifically, 12 exceptions totaling approximately $6,600 were identified within a sample of payroll transactions tested. As a result, certain payroll costs charged to federal awards were not supported in accordance with Uniform Guidance requirements applicable to compensation for personal services. Recommendation We recommend that the Organization strengthen policies and procedures governing payroll costs charged to federal awards. Such procedures should require adequate documentation supporting actual work performed, management review and approval of payroll allocations, periodic reconciliations between payroll records and expenditures charged to federal programs, and training for employees responsible for grant administration and payroll processing. Views of Responsible Officials and Planned Corrective Actions Arts for Learning Maryland has existing procedures for allocating payroll costs to federal and non-federal funding sources. However, the Organization acknowledges the need to enhance documentation and monitoring procedures to ensure compliance with Uniform Guidance requirements. The Organization will formally document payroll allocation policies and procedures, including requirements for contemporaneous support demonstrating actual work performed by employees whose compensation is charged to multiple funding sources. Management will implement enhanced review and approval procedures for payroll allocations and will perform periodic reconciliations between payroll records and expenditures charged to federal awards. In addition, the Organization will provide training to employees involved in payroll processing, financial reporting, and grant administration regarding applicable Uniform Guidance requirements. Management will also perform periodic internal reviews to identify and address compliance issues on a timely basis. These improvements will be implemented during fiscal year 2026 to strengthen compliance with federal award requirements and prevent recurrence of similar findings.

Asante Health System Corrective Action Plan for FY25 Single Audit Fiscal year end: 09/30/2025 Audit period: 10/01/2024-09/30/2025 Finding 2025-002 Federal Program: FEMA funding is federal financial aid from the Federal Emergency Management Agency’s Disaster Relief Fund (DRF), providing money for communities to recover from disasters, rebuilding infrastructure, mitigating future risks, and covering essential needs. Duplicate expenditures submitted for FEMA reimbursement resulting in unallowable costs being claimed under the program. Statement of Condition: In six of 40 sample items selected for testwork over activities allowed or unallowed and allowable costs/cost principles related to the program, $469,054 in expenditures out of a total of $1,368,522 expenditures (or 34%) were submitted for reimbursement to the Federal Emergency Management Agency (FEMA) but were related to the same invoices and therefore were duplicate expenditures. Upon further investigation, management identified that a total of $2,636,044 expenditures out of a total of $14,470,349 expenditures related to the program were duplicate expenditures. Further, management’s review that was performed over the underlying program details was not designed at a sufficient level of precision that enabled the identification of the duplication errors. Further, in management’s review for the completed project certification for one of two projects for the program these duplication errors were not identified. Actions Taken and Status: To address this deficiency, the organization has implemented the following corrective actions: 1. Recovery and Adjustment of Duplicate Claims o A complete review of all FEMA reimbursement submissions was performed to identify duplicate expenditures. o Management will work with FEMA to adjust previous reimbursement requests and return any funds received for duplicate expenditures, as required. 2. Enhanced Reconciliation Controls o A detailed reimbursement tracking log has been implemented to identify each invoice: payment date, reimbursement request number, and reimbursement status. o All expenditures submitted for reimbursement will be reconciled against prior submissions before inclusion in a reimbursement request. 3. Training o Finance personnel responsible for federal grant administration and reimbursement submissions have received training on Uniform Guidance requirements, allowable costs, and reimbursement documentation controls. Corrective action training has been completed as of 9/30/2026. Responsible Contact Person: Name: Heather Rowenhorst Title: Chief Financial Officer Department: Administration Phone/Email: 541-789-5098 / Heather.Rowenhorst@asante.org

The County did not ensure 10 payments totaling $62,400 for the Public Health Emergency Preparedness Program were reviewed and approved by independent appropriate personnel. Assistance Listings numbers and names: 93.069 Public Health Emergency Preparedness Questioned costs: $62,400 Contact Name: Rene Ontiveros Corrective Action Planned: The County Administrator/Deputy County Administrator will review and sign the purchase orders created that are made payable to the contracted Health Director for the Public Health Emergency Preparedness Program. Anticipated Completion Date: July 1, 2026

Finding 2025-08 Allowable Costs/Cost Principles: Insufficient Documentation of Expenditure Review and Approval – Significant Deficiency in Internal Control Over Compliance; Planned Corrective Action Plan: APU will strengthen documentation requirements for credit cards and other nonpayroll expenditures charged to federal awards. Required approvals and supporting documentation will be obtained and retained before costs are charged to the applicable federal award. Finance will periodically review federal credit card transactions for compliance with approval and documentation requirements.; Anticipated Completion Date: July 1, 2027

Finding 2025-003 Allowable Cost/Cost Principles and Cash Management – Compliance and Internal control over Allowable Costs/Cost Principles and Cash Management The City is implementing enhanced grant management procedures and review of allowable costs. Grant tracking will be improved with the implementation of the new financial software with the grant management module. The SEFA will be reviewed by the Administrative Services Director and the Finance Manager. The City has set up monthly meetings between the Finance Department and the Public Works Department to discuss and review capital improvement projects, grant funding, grant expenditures and allowable costs, and other funding requirements for those projects. Responsible Persons: Administrative Services Director, Finance Manager, Public Works Director Expected Implementation Date: July 1, 2025, though implementation of new finance software at July 1, 2027.

Material Weakness in Internal Control over Compliance 10.558 – Child and Adult Care Food Program Commonwealth of Pennsylvania, Department of Education Contract Number: 359-46-477-8 Condition As part of our audit procedures, we selected a sample of 60 payroll transactions for review. Our testing included examining employee human resource files, including signed W-4 and I-9 forms, approved pay rates, timesheets with supervisory approval, and related payroll reports. We recalculated hours and compensation based on approved pay rates and compared the results to the payroll reports. During our review, we noted that management did not record and compensate all employee hours in the appropriate period based on the time and effort performed. Specifically, two employees were not properly compensated for one day of personal time off and 1.12 hours of overtime related to the administration of the CBS Food Program. These amounts were subsequently adjusted and paid in a later period. Recommendation We recommend that management strengthen its payroll review controls to ensure that employee compensation, including personal time off and overtime, is accurately calculated, reviewed, approved, and paid in the appropriate period. The review should include comparing approved timesheets, pay rates, payroll reports, and any leave or overtime documentation before payroll is finalized. Management should also document its review and establish a follow-up process to identify and correct payroll discrepancies timely. Repeat Finding: No Explanation of Disagreement with Audit Finding There is no disagreement with the audit finding. Action taken in response to finding: CBS Food Program will revise its compensation plan to include formal payroll processing procedures. These procedures will require an independent review of timesheets against payroll records before payroll is issued and will establish criteria and timelines for promptly investigating and correcting any discrepancies. Name of the contact person responsible for corrective action: Jonathan Shahar, CEO Jonathan@cbsfoodprogram.com Planned completion date for corrective action plan: June 30, 2026

FINDING 2025-003 Finding Subject: Highway Planning and Construction- Activities Allowed or Unallowed, Allowable Costs/Cost Principles Contact Person Responsible for Corrective Action: Stan Heil Contact Phone Number and Email Address: 812-542-0506-sheil@floydcounty.in.gov Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: The Corrective Action Plan for this identified material weakness modified opinion, is first to recognize that strengthened internal controls will reduce/eliminate non-compliance submissions, thereby resulting in potential loss of Federal awards to the County of Floyd. The Commissioners have realigned and separated the Operations and Financial functions of Operations, to ensure greater attention to compliance. The identified material weakness with modified opinion occurred prior to the County’s realignment. It is desirous of the Floyd County Commissioners that compliance to all federal/state/and local awards are strictly adhered to and the separation of Operations and Finance strengthen this commitment. The Internal Controls will require that both the Chief Operations Officer and Chief Financial Officer review and sign as approval, ensuring that cross-referencing ledger expenditures for filing of reimbursement to Federal awards are compliant. The process will also ensure that any duplication of any reimbursements are eliminated. Anticipated Completion Date: The anticipated completion date of the Corrective Action Plan identified above will occur September 30, 2026 reporting as the exposure of this finding-weakness, is being addressed. Commissioners actions to ensure compliance and oversight were strengthened with the separation of Operations and Finance.

Corrective Action: UVNR is strengthening its time-and-effort reporting procedures through the use of Timesheets.com as its primary time-and-effort reporting system. Program-specific account codes have been added to allow employees to record actual hours worked by program or cost objective when checking in and out. Airtable is being utilized as a supplemental tool to document employee work performance and programlevel activities. These records are reviewed during monthly supervision meetings to assess alignment between reported activities, program responsibilities, and personnel allocations. UVNR will formalize documented supervisory review and approval of employee timesheets and establish monthly reconciliation of actual hours recorded in Timesheets.com against payroll distributions and funding allocations. Any discrepancies between budgeted allocations and actual time worked will be documented and corrected accordingly. Management will periodically monitor compliance and retain supporting documentation for personnel costs charged to federal awards. Due Date of Completion: December 31, 2026 (ongoing monthly reconciliation and monitoring thereafter). Responsible Parties: Executive Director.

Management will implement the corrective actions described in Findings 2025-003 and 2025-004 across all federal awards, including strengthened procedures for documenting, reviewing, and reconciling federal expenditures and reimbursement requests. Management will coordinate with the USDA Forest Service regarding the $62,404 in questioned costs and will follow the awarding agency's direction.