Corrective Action Plans

Recommendation: The Department of Social Services should conduct an audit of the medical provider in accordance with Section 17b-99 of the Connecticut General Statutes to ensure integrity of the Money Follows the Person Rebalancing Demonstration program. The Department of Social Services should recoup any improper payments issued to medical providers and refund the corresponding federal reimbursements to the Centers for Medicare and Medicaid Services. Corrective Action Plan as Reported by the Department of Social Services: The Department agrees with the finding. The improper payment has been recouped and the DSS Audit Division will open an audit of the provider. Anticipated Completion Date: December 31, 2026 Department of Social Services Contact Person: Cathie Bussolotta, Director of Internal Audit (860) 424-5548

Recommendation: The Department of Transportation should strengthen internal controls over consultant payments for extra work. Corrective Action Plan as Reported by the Department of Transportation: The CTDOT Transit Design Unit has immediately put in-place a corrective action plan, which will be completed by January 30, 2026. As part of this action plan, when signing off on invoices in the future, the Project Manager will ensure the date of the invoice refers to the correct payment mechanism or extra work letter in accordance with our established policies. This will strengthen internal controls and reviews over payments for all fee letters to ensure it follows established policies and only pay for properly authorized extra work. In addition to internal actions, the consultant project team will be counseled for submitting an invoice that does not follow CTDOT policies. Anticipated Completion Date: January 30, 2026 Department of Transportation Contact Person: Jonathan Kang, Transportation Supervising Engineer Jonathan.Kang@ct.gov, (860) 594-2754

Reference Number: 2025-021 Prior Year Finding: No Federal Agency: U.S. Department of Health and Human Services State Agency: Department of Health and Social Services State Division: Division of Medicaid and Medical Assistance Federal Program: Children’s Health Insurance Program Assistance Listing Number: 93.767 Award Number and Period: SAI000005399 (10/1/2023 – 9/30/2024) Compliance Requirement: Period of Performance Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance Recommendation: The Division should review and enhance its procedures and internal controls to ensure that it maintains documentation that expenditures charged to the program are incurred within an award’s allowable period of performance. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: To prevent recurrence, we are implementing the following actions: 1. Enhanced Monitoring Controls o Establish a centralized tracking system for all awards, including start and end dates. 2. Staff Training and Accountability o Conduct mandatory training for program and finance staff on compliance with period of performance requirements. o Assign clear responsibility for monitoring award timelines to designated personnel. 3. Pre-Closeout Review Process o Introduce a formal pre-closeout review 60 days before the award end date to identify and resolve outstanding obligations. o Require certification from both program and finance leads confirming that all expenditures fall within the allowable period. 4. Post-Expenditure Review o Perform monthly reconciliation of expenditures against the period of performance. o Immediately flag and correct any discrepancies identified. Name(s) of the contact person(s) responsible for corrective action: Joel Riley – Program Integrity Chief Anthony Yeager – Fiscal Manager Planned completion date for corrective action plan: July 31, 2026

Reference Number: 2025-009 Prior Year Finding: 2024-011 Federal Agency: U.S. Department of Labor State Department Name: Department of Labor State Division Name: Division of Unemployment Insurance Federal Program: Unemployment Insurance, COVID-19 – Unemployment Insurance Assistance Listing Number: 17.225 Award Number and Year: 24A55UI000067 (10/1/2023 – 12/31/2026) 25A55UI000116 (10/1/2024 – 12/31/2027) Compliance Requirement: Allowable Cost/Cost Principles Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Recommendation: The Division should reevaluate its procedures and controls regarding general disbursements to ensure that supporting documentation is readily available upon audit request. Explanation of disagreement with audit finding: We acknowledge that audit ready evidence was not produced in a timely fashion but respectfully disagree that the Division did not maintain this evidence. The lack of timely production can be attributed to lack of awareness of the proper repository where such audit evidence was maintained and/or could be easily retrieved, as opposed to no maintenance at all. We also maintain that the division was able to substantiate all expenses queried. Action taken in response to finding: The business will continue to refine its process for maintaining audit ready evidence to improve response time in future engagements. Name(s) of the contact person(s) responsible for corrective action: Michael Soper, Fiscal Management Planned completion date for corrective action plan: March 31, 2027

The Senior Accounting and Finance Director and the Director of Operations have scheduled a weekly meeting to address training needs for front-line staff and to develop methods for monitoring data collection and ensuring accountability for data entry. Although procedures and training manuals were developed, staff turnover resulted in the processes and procedures not being consistently followed.

Condition: For FAL 10.185, all 40 vendor disbursements tested lacked evidence of supervisory approval, as the payment request forms were not signed by the designated approver prior to payment. For FAL 10.558, 27 of thirty-two vendor disbursements tested lacked documented supervisory approval prior to payment. Finally for FAL 84.010A, two of the ten vendor disbursements tested lacked documented supervisory approval prior to payment. In each noted instance, payments were processed without evidence that the School performed and documented a review in accordance with established internal control procedures. Recommendation: The auditors recommend that the School enforce existing policies requiring documented supervisory approval prior to processing payments and implement monitoring procedures to ensure approval documentation is completed and retained. In addition, the School should strengthen pre-payment review procedures to ensure expenditures are evaluated for allowability, necessity, reasonableness, and proper allocation in accordance with 2 CFR Part 200 and applicable program requirements. Training should be provided to personnel responsible for processing and approving federal program expenditures to reinforce compliance responsibilities. Contact Name: Anastacia Europa Ruiz, Chief Operating Officer Corrective Action Planned: The School Management will require documented supervisory approval, including signature and date, on all payment request forms prior to processing vendor disbursements charged to federal programs. Accounts payable staff will not release payments without evidence of required authorization. Written disbursement procedures will be reviewed and the applicable staff will be retrained within 90 days. The School will perform monthly oversight of disbursement activity and quarterly sample reviews to ensure ongoing compliance. Anticipated Completion Date: June 30, 2026

Department: Health and Human Services Title: Internal control over the Adoption Assistance eligibility and benefit determination process needs improvement Questioned Costs: Known: $1,645 Likely: Undeterminable Status: Corrective action in progress Corrective Action: The Office of Child and Family Services made changes to the Katahdin System in August 2025 to stop duplicate payments. The Office of Child and Family Services will develop training information regarding children in adoption assistance agreements who are no longer receiving support from the adoptive parents. The Office of Child and Family Services will develop a training and train the appropriate staff. Completion Date: August 1, 2025, May 1, 2026, and December 31, 2026, respectively Agency Contact: Denise Merrill, Manager of Child Welfare Statewide Programs, DHHS, 207-822-2255

Department: Health and Human Services Title: Internal control over the Foster Care and Adoption Assistance eligibility and benefit determination process needs improvement Questioned Costs: Known: Known: ALN 93.658 $51,247 ALN 93.659 $42,689 Likely: undeterminable Status: Corrective action complete Corrective Action: The Department made changes to the OCFS licensing policy. The Department updated the Katahdin system (User story 3002158) to avoid overlapping payments for childcare in both Foster Care and Adoption. Completion Date: July 31, 2056, and August 3, 2025 Agency Contact: Robert Blanchard, Associate Director, OCFS, DHHS, 207-624-7955

Department: Health and Human Services Title: Internal control over TANF client payments needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department will review and update standard operating procedures to ensure that support payments made to and on behalf of TANF clients are accurate, allowable and adequately documented. Completion Date: June 30, 2026 Agency Contact: Ian Yaffe, Director, Office for Family Independence, DHHS, 207-592-1481

Department: Health and Human Services Title: Internal control over Health Disparities program payments to subrecipients needs improvement Questioned Costs: None Status: Management’s opinion is that corrective action is not required Corrective Action: The Department disagrees with this finding. The conditions noted do not support that costs were unallowable. Furthermore, the Department demonstrated that the funds had been used in accordance with the terms and conditions of the award. The Department’s processes provide reasonable assurance that payments are appropriate. Completion Date: N/A Agency Contact: Eden Hale, Associate Director, Division of Population Health Equity, Maine CDC, 207-441-1090

Department: Defense, Veterans and Emergency Management Administrative and Financial Services Title: Internal control over National Guard payroll costs needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: Defense, Veterans and Emergency Management (DVEM): The Department identified "agency heads" for the positions identified in the audit. The Department communicated to "agency heads" regarding the requirement to sign forms. Department of Administrative and Financial Services (DAFS): The Department will update the PMF guidance as part of ongoing modernization efforts. The Department will educate HR Staff in reviewing completed PMFs to ensure they are fully completed before processing. Completion Date: DVEM: March 2026 DAFS: August 1, 2026, and October 1, 2026, respectively Agency Contact: DVEM: Michelle Lenihan, Deputy Commissioner, DVEM, 207- 430-5997 DAFS: Michael J. Dunn, Esq., Acting State Human Resources Officer, BHR, 207- 215-2951

Department: Education Title: Internal control over CNC claim reimbursements needs improvement Questioned Costs: Known: ALN 10.559 $61,336 ALN 10.582 $12,215 Likely: ALN 10.559 undeterminable ALN 10.582 undeterminable Status: Corrective action in progress Corrective Action: The Department will create a business requirements document for the SFSP site sheet and claims camp/closed enrolled eligibility edit checks. The non-congregate application now requires sponsors’ to have a written procedure to address site proximity, this is captured in an offline form in the checklist document. The Department submitted a ticket to update the FNS report so it will collect the data needed. For the FFVP, a tracking procedure is in place for SFY 2026 to stay within the $50-75/student rate. A spreadsheet is being used to track this information and has been implemented. Completion Date: March 4, 2026 (first item), June 30, 2025 (second and fourth items), and March 19, 2025 (third item) Agency Contact: Jane McLucas, Director of Child Nutrition, DOE, 207-624-6880

Department: Health and Human Services Title: Internal control over SNAP deceased client cases needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Office of Family Independence is automating the Center for Disease Control and Prevention (CDC) data feed and others as part of Pub. L. 119-21 Medicaid requirements. CDC data is scheduled to be fully automated by 8/1/26. The automation logic will enhance the matching to work despite spaces and special characters and add social security number matching logic. Completion Date: August 1, 2026 Agency Contact: Michael E. Downs, Public Service Coordinator II – SNAP, DHHS, 207-592-4850

Department: Health and Human Services Title: Internal control over automated SNAP eligibility certification periods needs improvement Questioned Costs: Known: ALN 10.551 $7,658 Likely: ALN 10.551 Undeterminable Status: Corrective action in progress Corrective Action: The Department has developed a process that identifies cases that have the wrong renewal date. Cases that are flagged as needing a six-month report but not having one scheduled by the system are manually worked to have the appointment added and the report sent out. The Department has resolved the last of the identified technological problems in February 2026. Completion Date: April 2, 2026, and March 1, 2026, respectively Agency Contact: Michael E. Downs, Public Service Coordinator II – SNAP, DHHS, 207-592-4850

Department: Health and Human Services Title: Internal control over SNAP eligibility determinations and benefit calculations needs improvement Questioned Costs: Known: ALN 10.551 $47,493 Likely: Undeterminable Status: Corrective action in progress Corrective Action: The Department determined benefits issued beyond the end of the certification period were the result of several technological errors. The last of these errors was resolved in February 2026. We also receive a monthly report of cases that failed to close at the end of the certification period and manually correct those few cases each month. The Department is taking steps to do more of this verification in an attempt to reduce our Payment Error Rate. Initial guidance has been distributed. Verification of expenses (above) will also enhance the verification of identity, residence, and household composition The two questionable self employment cases were identified to be worker specific (not wide-spread) errors. We will follow up with workers as errors are identified Completion Date: March 1, 2026 (first item), August 1, 2026 (second and third items), and April 1, 2026 (fourth item) Agency Contact: Ian Yaffe, Director, Office for Family Independence, DHHS, 207-592-1481

Congressionally Directed Spending – 93.493 Recommendation: We recommend that the University reviews its procedures around review and approval of expenditures to ensure that only valid expenditures are reported. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The identified expenditures were removed from the award and appropriately reclassified in September 2025. In response to this finding, the University of Maine at Augusta (UMA) has increased the frequency of general ledger review for its federal awards from monthly to twice monthly. This review process includes a direct cross-reference between transactions and the approved award budget. This enhanced oversight allows for timely identification and correction of discrepancies. The UMA Finance Department has several initiatives underway which will mitigate the risk of similar mispostings in the future, including the implementation of a formal training program for staff as a preventative control. A monthly reconciliation and transaction level review process which will be completed with principal investigators is also being developed. These additional procedures are expected to be in place by May 2026 and will support a consistent and strong awareness of federal compliance requirements, award administration and University of Maine System policies and procedures. Name(s) of the contact person(s) responsible for corrective action: Mark Mantey, Assistant Director of Finance, University of Maine at Augusta Planned completion date for corrective action plan: May 2026 If the United States Department of Education or other agency has questions regarding this plan, please call Darla Reynolds at 207-262-7743 or darlab@maine.edu.

FINDING 2025-003 Finding Subject: Special Education Cluster (IDEA) - Earmarking Contact Person Responsible for Corrective Action: Ann Higgins and Dr. Amy K. Sivley Contact Phone Number and Email Address: 2 260-563-8871, higginsa@msdwc.k12.in.us; 60-563- 2151, sivleya@apaches.k12.in.us Views of Responsible Officials: We concur with the finding. Explanation and Reasons for Disagreement: n/a Description of Corrective Action Plan: The following procedure has been put into practice effective March 1, 2024: 1. A proportionate Share Working Spreadsheet was developed and is distributed annually to service providers working with non-pub students. 2. Service providers document the following information for each corporation: Student name, Date of service, Time of Service, Number of hours, Type of Service, and any other required information. 3. Documentation is reviewed monthly. 4. Reimbursement for non-pub services is requested when reimbursement amounts reach $1,000.00 or annually, whichever comes first. Superintendent/CFO will attend monthly co-op meeting and request documentation that corrective action plan is being followed. Anticipated Completion Date: Upon approval, this corrective action plan item is completed.

Department staff has reviewed the Legislative Audit Bureau’s (LAB) interim audit memo for Finding 2025-306: Children’s Health Insurance Program – Reconciliation of Vaccine Purchases. This is the department’s Corrective Action Plan.  Recommendation (2025-306): Children’s Health Insurance Program – Reconciliation of Vaccine Purchases We recommend the Wisconsin Department of Health Services comply with federal regulations and ensure it performs annual reconciliations to calculate any differences between the estimated cost and the actual cost of vaccines for SCHIP participants and then adjusts the estimate for vaccine purchases funded from the Children’s Health Insurance Program (CHIP). Wisconsin Department of Health Services Planned Corrective Action: The Division of Enterprise Services and the Division of Public Health worked together to complete the reconciliation and adjust the estimate for FFY 2026. However, this work was done after the end of the audit period. This work effectively returned the $2.6 million in unallowable costs included in the memo to the federal government. The divisions will continue to work together to perform an annual reconciliation and adjust the estimate going forward. Anticipated Completion Date: September 1, 2026 Persons responsible for corrective action Becky Mogensen, Section Chief Managerial Accounting Section, Bureau of Fiscal Services, Division of Enterprise Services rebeccaj.mogensen@dhs.wisconsin.gov Elizabeth Brotheridge, Section Manager Communicable Disease Administration Section, Bureau of Communicable Diseases, Division of Public Health elizabeth.brotheridge@dhs.wisconsin.gov

Department of Public Health respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT Department of Health and Human Services [2025-041] (Period of Performance) Maternal and Child Health Services Block Grant to the States Assistance Listings: 93.994 Disposition of Audit Finding: The Department of Public Health concurs with the audit finding. Corrective Action: For 5 of the 60 transactions tested, 1 had costs incurred before the period of performance date and 4 had program expenditures not obligated and expended in accordance with program requirements. This was the result of human error/misclassification during processing. We are reinforcing guidance with both program and budget staff to prevent similar errors in future reporting periods. Anticipated Completion Date: June 30, 2026 The contact persons responsible for corrective action: . Meredith Murphy, Director, Budgets & Financial Planning at 803-898-4222 . Danielle Wingo, Director, MCH Bureau at 640-649-9292

The South Carolina Department of Social Services (SCDSS) respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT U.S. Department of Health and Human Services Child Care and Development Fund (CCDF) Cluster – Assistance Listing No. 93.575, 93.596, and 93.489 Disposition of Audit Finding: The SCDSS concurs with the audit finding. Corrective Action: The Department is in the process of closing grants within the accounting system to prevent system-generated payroll expenses from posting after the grant period of performance has ended. This control ensures that payroll charges are restricted to the allowable grant period. Anticipated Completion Date: December 31, 2026 Names of the contact persons responsible for corrective action: • Courtney Hogue, Controller at 803-898-7488 • Hiba Khalaf, Grants Accounting Manager at 803-898-7484

The Department of Environmental Services respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The finding from the schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT U.S. Environmental Protection Agency Performance Partnership Grants – Assistance Listing No. 66.605 Disposition of Audit Finding: The Department of Environmental Services agrees with the audit finding. Corrective Action: There will be one staff member in Budgets that prepares the document and the JE and supporting documentation will be reviewed by another to ensure that the JE is not moving an expenditure onto a closed Federal grant. Anticipated Completion Date: Process began July 1, 2025, and will be ongoing. Simon Li will be responsible for corrective action: • Simon Li at 803-898-3443

The South Carolina Office of the Adjutant General respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Findings — FEDERAL AWARD PROGRAM AUDIT U.S. Department of Defense National Guard Military Operations and Maintenance (O&M) Projects – Assistance Listing No. 12.401 Disposition of Audit Finding: The Office of the Adjutant General concurs with the audit finding. The $2,571 finding was identified by the Agency prior to the audit. The Agency was only able make corrections to the grants which remained open (total of $1,421). The Agency was unable to make corrections for the remaining amount as those grants had been closed. Corrective Action: The Agency relies on SCEIS workflow approvals to verify and approve the period of performance. The Agency currently has three or four levels of approvals (depending on the specific grant) for each Shopping Cart. During this process, the Shopping Carts are reviewed and approved/disapproved by the Cooperative Agreement budget analyst, the Grants Department, the Procurement Department and the Budget & Finance Department. Annual reminders are sent to each Cooperative Agreement and email verification of disbursements are filed. Additional quarterly quality control checks will be added to the process. Anticipated Completion Date: 6/30/2026 Name of the contact person responsible for corrective action: Anita Ballington at 803-299-4294

The South Carolina Office of the Adjutant General respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Findings — FEDERAL AWARD PROGRAM AUDIT United States Department of Homeland Security 2025-003 Public Assistance (Presidentially Declared Disasters) - Assistance Listing No. 97.036 Disposition of Audit Finding: The South Carolina Emergency Management Division (SCEMD) of the Office of the Adjutant General concurs with the audit finding. Corrective Action: The Agency will refine its Public Assistance (PA) Reimbursement Review SOP and related Recovery Grants and Finance staff training to specify a requirement to validate that for projects under PA grants declared in 2018 and before, Direct Administrative Costs (DAC) were expended before the end of the project period of performance. In addition, the Recipient has submitted a time extension for the project period of performance but does not yet have approval from FEMA. Notes: • DAC was an eligible category of costs in PA projects under disaster grants through 2017 and optional for those declared August 1, 2017, through October 04, 2018 (opt-in). • Federal PA policy shifted to a management costs approach for projects under incidents declared on or after October 05, 2018. See attached FEMA Recovery Policy FP 104-11-2. Management costs are eligible for reimbursement up to 180 days after the subrecipient completes its last non-management cost project (p. 5). • Guidance regarding Direct Administrative Costs (see FEMA table attached) indicates that project closeout activities are eligible direct costs,which may have led to the Recipient considering DAC during the closeout period as eligible even when the project period of performance had ended. • The Federal Agency involved, FEMA, closed the project without noting an issue with reimbursement of these expenditures. Anticipated Completion Date: June 30, 2026 2 Name of the contact person responsible for corrective action: • Emily Bentley, SCEMD Chief of Mitigation and Recovery, at (803) 737-8774 • Antonio Johnson, SCEMD Grants and Finance Manager, at (803) 737-8606

Reference Number: 2025-009 Prior Year Finding: 2024-009; 2023-007 and 2022-016 Federal Agency: U.S. Department of Labor State Agency: Vermont Department of Labor Federal Program: Unemployment Insurance Assistance Listing Number: 17.225 Award Number and Period: 25A55UI000119 (10/1/2024 – 12/31/2027) UI370952155A50 (9/1/2021 – 5/22/2025) 23A60UB000019 (8/3/2023 – 5/22/2025) 24A60UD000052 (8/20/2024 – 8/20/2027) Compliance Requirement: Allowable Costs/Cost Principles Type of Finding: Significant Deficiency in Internal Control over Compliance Recommendation: We recommend the Department review and enhance its procedures and controls regarding payment processing to ensure that, prior to charging costs to the program, they are reviewed by a supervisor who is knowledgeable of the regulations regarding allowable program costs and that documentation of the review is maintained. Views of responsible officials: Management agrees with the finding. Corrective Acton Plan: The Department has reviewed its procedures and internal controls, and we believe that they adequately require oversight and signoff of all expenditures to ensure that expenditures are adequately reviewed and signed off on. However, there is currently no double check to ensure that the accounting clerks are following these procedures. Department will be adding a secondary check to the procedure to occur at the end of each month to review expenditures for proper coding (cost center, project code and function code) as well as responsible party signoff. Scheduled Completion Date of Corrective Action Plan: May15, 2026 Contacts for Corrective Action Plan: Kristine Murphy, Director, Unemployment Insurance, kristine.murphy@vermont.gov Chad Wawrzyniak, Chief Financial Officer, chad.wawrzyniak@vermont.gov

Reference Number: 2025-007 Prior Year Finding: 2024-010; 2023-008: and 2022-017 Federal Agency: U.S. Department of Labor State Agency: Vermont Department of Labor Federal Program: Unemployment Insurance Assistance Listing Number: 17.225 Award Number and Period: 25A55UI000119 (10/1/2024 – 12/31/2027) Compliance Requirement: Period of Performance Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance Recommendation: We recommend the Department review and enhance its procedures and controls to ensure that, prior to charging costs to the program, they are incurred within an award’s allowable period of performance and that payments are reviewed and approved by a supervisor who has knowledge of costs that are allowable under the program. Views of responsible officials: Management agrees with the finding. Corrective Acton Plan: The Department will review its procedures and internal controls and update as necessary to ensure that all expenditures incurred on an award fall within the allowable period of performance. Scheduled Completion Date of Corrective Action Plan: June 30, 2026 Contacts for Corrective Action Plan: Chad Wawrzyniak, Chief Financial Officer, chad.wawrzyniak@vermont.gov