Corrective Action Plans

2025-001. Allowable Costs/Cost Principles United States Department of Education, Passed Through New York State, Department of Education: Title I Grants to Local Educational Agencies ALN: 84.010A Condition: Subpart E, 2 CFR §200.430 of the Uniform Guidance requires that charges to “Federal awards for salaries and wages must be based on records that accurately reflect the work performed.” The documentation should support the distribution of the employee’s compensation among specific activities if the employee works on more than one federal award, or a federal award and non-federal award. The preparation of personnel activity reports (PAR) or periodic certifications or the equivalent is the most effective way to comply with this requirement. During the current year, the District prepared periodic certification equivalents, but it did not comply with the documentation standards prescribed by Subpart E, 2 CFR §200.430; the amount of one employee’s actual payroll charged to the Title I federal award was less than the allocation percentage on the periodic certification reports that were signed by the employee’s supervisor. Planned Corrective Action: The District will adopt procedures that ensure that appropriate documentation for time and effort will be used to support costs charged to the federal award, and comply with Subpart E, 2 CFR §200.430. Responsible Contact Person: Mr. William Ludeker Assistant Superintendent for Business Lindenhurst Union Free School District 350 Daniel Street Lindenhurst, New York 11757 Anticipated Completion Date: June 30, 2026.

FINDING 2025-005 Finding Subject: Contact Person Responsible for Corrective Action: Tracey Haas, Business Manager Contact Phone Number and Email Address: 219-873-2000 x 8346 thaas@mcas.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: We will implement a system of internal controls to ensure allowable costs are documented and that receive board approval for all pay rates moving forward. However, we disagree with the finding on the allowable costs pertaining to the Financial Consulting Claims. We wrote them into the grant, and the grant was approved. There was also no Business Manager or Chief Financial Officer in place during the pandemic, resulting in the need for the consulting firm. Anticipated Completion Date: We anticipate that this correction will be in place by July 2026.

Corrective Action Plan: The identified conditions related to timesheets for hourly employees. To mitigate the risk of missing approval documentation for payroll charged to Federal R&D awards, the College is formalizing procedures requiring PI or supervisor review of applicable timesheets, configuring the approval workflow in Workday to require and retain evidence of approval, and implementing periodic monitoring to identify and correct missing approvals. Timeline for Implementation of Corrective Action Plan: These corrective actions are being implemented before the end of fiscal year 2026.

Finding 2025-001 Condition: Semi-annual time and effort certifications were not maintained for grant employees whose salaries and wages were not supported by detailed time records. Corrective Action Planned: Controls will be implemented to ensure all time and effort certifications are completed and maintained by the appropriate grant administrators for all grant employees. Anticipated Completion Date: June 30, 2026 Contact: Larry Azer, School Business Manager

Finding Number: 2025‐001, 2024‐002 Program Name/Assistance Listing Title: Indian School Equalization Program Assistance Listing Number: 15.042 Contact Person: Eloyce Gillespie, Business Manager Anticipated Completion Date: February 20, 2026 Planned Corrective Action: Casa Blanca Community School completed the required review process in accordance with the established procedure, however, the error still occurred due to a system limitation. Specifically, although staff followed the process and performed the required review, the system does not currently flag or prevent adjustments that exceed the allowable threshold from being rolled into the next fiscal year. Because this condition is not automatically identified or restricted by the system, the adjustment was able to process despite the control being executed. To address this, the School will work with the system support team to evaluate options for adding automated validation or warning to prevent adjustments from rolling into the next fiscal year when limits are exceeded, which will include manual review. These actions were completed by February 20, 2026, and the process owner will monitor compliance.

15.047 Indian Education Facilities, Operations, and Maintenance – Assistance Listing No. Recommendation: To implement a stronger system of review for ensuring that all changes in employee payroll are properly implemented and approved. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Human Resources (HR) is working with Finance to process retroactive compensation for the full underpaid amount owed. Associated DRS contributions will also be reviewed and corrected to ensure full compliance. Moving forward, HR will implement an enhanced verification control at the beginning of each fiscal year. This includes documented confirmation of pay accuracy for a minimum of two employees per department following salary schedule implementation and prior to the first payroll. Ideally, this control will be performed jointly by HR and Finance to ensure segregation of duties and consistency. Name(s) of the contact person(s) responsible for corrective action: Beth Wilde, Director of Human Resources Planned completion date for corrective action plan: July 1, 2026

Finding 2025-002 Program: Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) Assistance Listing No.: 10.557 Federal Grantor: U.S. Department of Agriculture Passed-through: California Department of Public Health Award No.: 22-10307 Award Year: 2022 Compliance Requirement: Activities Allowable or Unallowed and Allowable Costs/Cost Principles Type of Finding: Significant Deficiency in Internal Control Over Compliance Department’s Management Response: HCA’s Ventura County Public Health (VCPH) Management agrees with the recommendation to strengthen the established policies and procedures to ensure all timecards consistently document evidence of supervisor approval. View of Responsible Officials and Corrective Action: The timesheet identified during this audit were submitted in the County’s payroll system prior to the completion of the 2024 fiscal year audit and related finding 2024-003; therefore, the related corrective actions had not yet been implemented at the time of submission. In response to the prior year’s finding, VCPH Management implemented enhanced controls to ensure compliance with timecard approval requirements moving forward from that date. Payroll staff now sends reminder notifications to supervisors, managers, and VCPH Management before and after each pay period closing to identify and resolve unapproved timecards. Management has also reinforced expectations through additional training for supervisors and managers. When a primary supervisor is unavailable, the established alternate approver process will be used to ensure timely approvals. VCPH Management will continue monitoring compliance with these procedures, and these requirements will be reviewed again with all supervising staff at the next scheduled WIC Supervisor Meeting. Name of Responsible Persons: Laura Flores, Manager, VCPH Rigoberto Vargas, Director, VCPH Implementation Date: May 1, 2025 – Instructions were provided to all supervisors at the WIC Supervisor Team Meeting May 7, 2026 – Timecard instructions will again be discussed at the WIC Supervisor Team Meeting

Finding Reference 2025-002 Personnel Responsible for Corrective Action: Drafting of policy, procedures, and forms will be completed by Westen Gehring (Grants Specialist) and Laura Froese (Accounting Manager), with input and final approval provided by Tracie Thomas (Chief Operating Officer) Anticipated Completion Date: The Effort Verification Policy and related procedures will be finalized by July 1, 2026, for implementation in Fiscal Year 2027. Retroactive effort certification for the period July 1, 2025 through March 31, 2026 will be completed by June 30, 2026. Monthly implementation tests of the new policies and procedures will begin with the April 2026 reporting period. Views of Responsible Officials and Planned Corrective Action: Concur. Corrective Actions Planned: The Land Institute will implement a formal effort reporting system effective July 1, 2026 (Fiscal Year 2027), including finalized policies, procedures, and standardized effort certification forms designed to ensure compliance with 2 CFR 200.430 As part of the transition to this system, retroactive effort certifications will be completed for Fiscal Year 2026 for the period of July 1, 2025 through March 31, 2026 to support payroll costs previously charged to federal awards. The months of April through June 2026 will be utilized as an implementation and testing period to establish and refine the monthly effort certification process. During this time, The Land Institute will complete effort certifications on a monthly basis, reflecting an after-the-fact determination of actual work performed across all institutional activities, and integrate the certification process into month-end close procedures. This phased implementation approach will allow management to validate processes, ensure accuracy and completeness of certifications, and make any necessary adjustments prior to full implementation in Fiscal Year 2027. Training will be provided to all applicable staff to ensure understanding of effort reporting requirements and compliance expectations. Finance and Grants personnel will monitor compliance and timeliness of certifications, and ongoing monitoring controls will be implemented to ensure continued compliance.

Higher Education Institutional Aid – Assistance Listing No. 84.031X Recommendation: We recommend the College review policies and procedures to ensure all personnel on federal grants have documented time and effort reports as stated in federal regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Grant Project directors have been notified to have their employees track and document the hours spent in support of their grants versus time spent on college duties. Name(s) of the contact person(s) responsible for corrective action: Current Controller: Elizabeth Todd and Current Human Resources Director Nicole Mote Planned completion date for corrective action plan: 06-30-26

The District will implement time and effort documentation for employees paid with federal funds. The District has already implemented allocation process on the Child Nutrition invoices in FY26.

Program: HIV Emergency Relief Project Grants (Ryan White) Federal Financial Assistance Listing Number: 93.914 Federal Grantor: U.S. Department of Health and Human Services Award No. and Year: 6H89HA00019-32-04; 2024 Compliance Requirements: Activities Allowable or Unallowed and Allowable Costs/Cost Principles Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR Section 200.303(a), Internal Controls, states that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR Section 200.430, Compensation – Personal Services, states that charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition: During our testing, for one (1) out of sixty (60) payroll expenditures, we noted the timecard did not contain documented evidence of supervisory approval. Cause: The County’s internal control procedures were not consistently followed to ensure that the review and approval of timecards was documented. Effect: Lack of documented review for personnel hours could lead to an increased risk that unallowable or inaccurate activities and costs to be charged to the Federal program. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: A nonstatistical sampling of sixty (60) timecards were selected for testing out of a population of 5,994. The condition noted above was identified during our procedures related to activities allowed or unallowed and allowable costs/cost principles. Repeat Finding from Prior Years: No. Recommendation: We recommend that the County strengthen its policies and procedures to ensure that timecards consistently include documented evidence of supervisor approval prior to payroll processing. The County should also establish compensating controls for circumstances where timely supervisory approvals is not possible, and ensure such controls are consistently documented. Management Response and Corrective Action Plan: 1. Person Responsible: Barbara Harano, HCA Disbursements Manager 2. Corrective action plan: HCA Payroll will continue to review the Unapproved Timesheets Report in OC Time and send reminder emails to all supervisors with pending approvals. If supervisory approvals cannot be obtained by the OC Time timesheet upload deadlines, HCA Payroll will ensure documented timesheet approvals are appended through the OC Time amendment process and archived in the Unit’s shared drive. 3. Anticipated Implementation date: January 22, 2026

Program: WIC Special Supplemental Nutrition Program for Women, Infants, and Children Federal Financial Assistance Listing Number: 10.557 Federal Grantor: U.S. Department of Agriculture Pass-Through: California Department of Public Health Award No. and Year: 22-10270 A03 and 2022 Compliance Requirements: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR Section 200.303(a), Internal Controls, states that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR Section 200.430, Compensation – Personal Services, states that charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition: During our testing of the HCA’s provisions for activities allowed or unallowed and allowable costs/cost principles requirements, we noted that for one (1) of sixty (60) payroll samples tested, the employee was able to review and approve their own timecard. Cause: It was determined that the control deficiency resulted from a system configuration error that permitted the employee to approve their own timecard under the supervisor/manager review role. Effect: Failure to consistently apply internal controls over payroll charges increases the risk that unallowable or unsupported payroll costs could be charged to the Federal program and not be detected in a timely manner. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: A nonstatistical sampling of sixty (60) timecards was selected for testing out of a population of 1,144. The condition noted above was identified during our procedures related to activities allowed or unallowed and allowable costs/cost principles. Repeat Finding from Prior Years: No. Recommendation: Management should ensure appropriate segregation of duties within the payroll system by restricting approval authority to independent supervisors or managers and implementing controls to prevent self-approval. In addition, management should periodically review user access roles and system configurations to confirm that approval controls are operating as designed and that payroll charges to Federal programs are allowable, properly allocated, and adequately supported. Management Response and Corrective Action Plan: 1. Person Responsible: Barbara Harano, HCA Disbursements Manager 2. Corrective action plan: An unexpected change occurred in the OC Time system that allowed an employee to both submit and approve their own timesheet. This issue had been previously reported and resolved. Auditor-Controller IT has reported the issue again to the timekeeping system vendor and is currently validating and testing the updated configuration to ensure the problem does not recur. 3. Anticipated Implementation date: June 30, 2026

Finding Number: 2025‐001 Program Names/Assistance Listing Titles: Assistance Listing Numbers: Title I Grants to Local Educational Agencies 84.010 Forest Service Schools and Roads Cluster 10.665 Contact Person: Andrea Despain Anticipated Completion Date: June 30, 2026 Planned Corrective Action: The District will collaborate with all grant stakeholders to strengthen internal controls by ensuring strict adherence to payroll procedures. Oversight will be reinforced through regular grant management meetings and funding reviews conducted by the Business Manager. To enhance accuracy and documentation practices, staff will receive targeted training on compliance requirements with payroll and grants. Additionally, recordkeeping processes will be standardized, with periodic reviews to verify adherence and improve efficiency. These corrective actions have been implemented and will be continuously supported through ongoing reviews.

A finding related to Lack of Time and Effort Documentation was identified in the FY 2024-25 Single Audit. This finding pertains to stipends charged to the ESSER III program for activities completed during the summer break in 2024. While the Newmarket School District has established procedures and internal controls for payroll costs charged to federal programs, these controls were not applied to stipend payments, resulting in the audit finding. To address this issue, Newmarket School District will implement the following procedures for all stipends charged to federal programs: • Employees will be required to complete either a Personnel Activity Report (PAR), timesheet, or sign-in sheet for each applicable pay period, clearly documenting the dates worked, hours worked, funding source, and activities performed that were charged to federal programs per 2 CFR 200.430. • Employees will be required to sign the required documentation to certify that the report accurately reflects their time and effort for the pay period. • Supervisors will be required to review and approve the required documentation by signature, confirming that the reported hours and dates align with the work performed and that the activities are allowable and consistent with program objectives and requirements. • The payroll team will review and verify that the time and effort documented in the required documentation is properly allocated and accurately supports the stipend amount to be paid. • Management will ensure that all supporting documentation is retained in accordance with federal record retention requirements and is readily available for audit.

Despite the high overall accuracy rate, the District is taking immediate steps to address identified compensation and documentation issues. We have corrected pay scale deficiencies to ensure employees receive proper compensation and implemented additional review controls to prevent future errors. We have also strengthened our account coding procedures to ensure compensation charges are applied to the appropriate funding sources. Additionally, we have updated our digital time-tracking approval workflow to require contemporaneous authorization and improve documentation retention for all supplemental and retrospective compensation. Estimated Completion Date: March 31, 2026 Contact Person: Byron Schueneman, Chief Financial Officer

Reference # and title: 2025-002 Internal Control and Compliance over Special Education, Title I, and Title II Payrolls Federal program and specific federal award identification: AL Number Award Year FEDERAL GRANTER/ PASS THROUGH GRANTOR/PROGRAM NAME United States Department of Education; passed through Louisiana Department of Education Special Education Cluster (IDEA): Special Education Grants to States #84.027A 2025 Special Education Preschool Grants #84.173A 2025 Title I Grants to Local Educational Agencies #84.010A 2025 Title II Supporting Effective Instruction State Grants #84.367A 2025 Condition found: For an employee who works in part on the consolidated administrative cost objective and in part on a Federal program whose administrative funds have not been consolidated or on activities funded from other revenue sources, the School Board must maintain time and effort distribution records in accordance with 2 CFR section 200.430(i)(1)(vii) that support the portion of time and effort dedicated to (a) the consolidated cost objective, and (b) each program or other cost objective supported by non-consolidated Federal funds or other revenue sources. Employee pay should be reviewed to ensure that payment amount is correct. Employee attendance should be documented on a consistent basis. In testing 29 payroll transactions for the Special Education program, the following exceptions were noted: 20 exceptions noted in which attendance records were not signed by the supervisor; 2 exceptions where one employee was not paid in accordance with the salary schedule, which resulted in an under payment; 13 exceptions where time certifications were not completed in a timely manner. In testing 29 payroll transactions for the Title I program, it was noted that although the employee had a time certification, that 20 payroll transactions did not reflect a supervisor’s review of the employees’ attendance records. In testing 29 payroll transactions for the Title II program, the following exceptions were noted: 17 exceptions noted in which attendance records were not signed by a supervisor; 12 exceptions where time certifications were not completed in a timely manner; 17 exceptions where employees clock in but do not clock out; 6 exceptions where substitute teachers do not sign in for work. Corrective action planned: The School Board is evaluating current policies and procedures over semi-annual certifications and employee attendance, and also ensuring new employees are properly trained regarding these policies and procedures. In addition, the School Board is implementing electronic employee attendance software throughout the District to ensure accuracy and completeness of attendance records. Person responsible for corrective action: Mrs. Nicia Bamburg, Chief Financial Officer Mr. Waylon Bates, Assistant Superintendent of Curriculum and Academic Affairs P.O. Box 2000 Benton, Louisiana 71006-2000 Phone: (318) 549-5000 Anticipated completion date: June 30, 2026

Finding 2025-002 Assistance Listing Number 97.036 Disaster Grants - Public Assistance (Presidentially Declared Disasters) Activities Allowed or Unallowed, Allowable Costs/Cost Principles Significant Deficiency in Internal Control over Compliance Instance of Noncompliance During the COVID-19 emergency, the City faced a high volume of FEMA Public Assistance (PA) grant submissions through CalOES and engaged an outside consultant to support cost recovery efforts. While internal controls were in place, the combination of evolving program determinations, high transaction volume, and limited staffing contributed to a breakdown in tracking payroll costs across projects. Specifically, labor costs associated with the Great Plates program were initially included in an early project submission but were subsequently challenged and removed by CalOES/FEMA. These same labor costs were later included in Category Z (Cat Z) project costs. CalOES subsequently approved the previously disallowed Great Plates labor and obligated funding without additional notification. As a result, the same payroll costs were inadvertently included in both projects, and the duplication was not identified prior to submission. Following the audit, the City conducted a detailed review of labor and fringe benefit costs across all applicable projects. Through this review, the City identified duplicate payroll charges and revised the reported expenditures to remove the duplicate charges. To prevent recurrence, the City has implemented enhanced oversight and centralized tracking controls across all grant programs, including strengthened payroll cost monitoring by funding source, cross-project reconciliations prior to submission, and supervisory review of reimbursement requests to ensure costs are not duplicated, particularly when eligibility determinations change. The City will also enhance monitoring of funding determinations and obligation updates and provide ongoing staff training on federal cost allowability and documentation requirements. These measures will be applied consistently across all grants, with additional attention during high-volume or emergency response activities. Contact person responsible for corrective action: Pooja Shrestha Anticipated completion date: Partially implemented and ongoing as of March 2026; full implementation by June 30, 2026

Recommendation: CT State Community College should strengthen internal controls to ensure that part-time and extension credit lecturer payroll and fringe benefits costs are based on actual time worked and are properly approved. Corrective Action Plan as Reported by the CT State Community College: CSCU is working to resolve the technical limitations that resulted in the relevant audit finding. Once resolved, reports will be generated and shared with the campuses to verify services provided. This will ensure that part-time and extension credit lecturer payroll is based on actual time worked that is properly approved and verified. Task Due Date Status Provide access to the template for the reporting requirements 1/8/2026 Completed Provide requirements for the report that would meet the needs of the audit requirement 1/12/2026 Review requirements and outline any questions / concerns with producing the requested report 1/20/2026 Regroup as a team to discuss next steps and review workplan for report implementation 1/21/2026 Completed Develop, test, and migrate report (detailed work plan to follow) 4/1/2026 Implement report for approval by each campus (Spring 2026 Semester) 5/1/2026 CT State Community College Anticipated Completion Date: May 1, 2026 CT State Community College Contact Person: Jennifer Person, Assistant Vice Chancellor of Human Resources and Labor Relations jennifer.person@ct.edu (860) 723-0258 Corrective Action Plan as Reported by the Office of Policy and Management: The Office of Policy and Management has no additional response beyond that offered by the CT State Community College. Office of Policy and Management Anticipated Completion Date: May 1, 2026 Office of Policy and Management Contact Person: Yvonne T. Addo, Chief Administrative Officer yvonne.addo@ct.gov (860) 418-6360

Reference Number: 2025-025 Prior Year Finding: 2024-024 Federal Agency: U.S. Department of Health and Human Services State Department Name: Department of Health and Social Services State Division: Division of Substance Abuse and Mental Health Federal Program: Opioid-STR Assistance Listing Number: 93.788 Award Number and Year: H79TI085764 (9/30/2022 – 9/29/2024) 6H79TI085764 (9/30/2023 – 9/29/2025) 5H79TI083305 (9/30/2024 – 9/29/2027) Compliance Requirement: Allowable Costs/Cost Principles – Time and Effort Reporting Type of Finding: Material Weakness in Internal Control Over Compliance Recommendation: The Division should enhance procedures, implement proper controls, and perform additional training over time and effort reporting. The Division should not seek federal reimbursement unless it can substantiate that the time and effort was dedicated to the federal program. Documentation should be readily available for audit. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Division evaluated the developed process and implemented controls for completion of the process within 60 days with added monitoring roles for accuracy and timeliness. The Division will be performing training for assigned staff, monitoring completion and will continue to improve the process for efficiency and compliance. Name(s) of the contact person(s) responsible for corrective action: Brook Meadow, Fiscal Administrator II, Office of the Secretary Administration Planned completion date for corrective action plan: June 30, 2026

Reference Number: 2025-020 Prior Year Finding: 2024-019 Federal Agency: U.S. Department of Health and Human Services State Department Name: Department of Health and Social Services State Division: Division of Social Services Federal Program: CCDF Cluster Assistance Listing Number: 93.575. 93.596 Award Number and Year: SAI5406 (10/1/2022 – 9/30/2025) SAI5788 (10/1/2023 – 9/30/2026) SAI6656 (10/1/2024 – 9/30/2028) SAI6306 (10/1/2024 – 9/30/2027) Compliance Requirement: Allowable Costs/Cost Principles – Time and Effort Reporting Type of Finding: Significant Deficiency in Internal Control Over Compliance Recommendation: The Division should enhance procedures, implement proper controls, and perform additional training over time and effort reporting. The Division should not seek federal reimbursement unless it can substantiate that the time and effort was dedicated to the federal program. Documentation should be readily available for audit. Explanation of disagreement with audit finding: There is no disagreement with the audit findings. Action taken in response to finding: The following action will be taken to improve the current process. • The Fiscal unit is implementing procedures to serve as the central repository for all Time and Effort records, replacing the current practice of storing these forms at the program manager level. • Implement internal controls for Time and Effort Reporting. • Confirm that T&E information submitted is accurate and reconciled. • Provide training for Time & Effort certification. Name(s) of the contact person(s) responsible for corrective action: Joanne Sunga – Fiscal Administrator Tracey Rogers-Mitchell – OSEC Chief of Administration Secil Onat – DSS Chief of Administration Planned completion date for corrective action plan: June 30, 2026.

Reference Number: 2025-017 Prior Year Finding: No Federal Agency: U.S. Department of Health and Human Services State Department Name: Department of Health and Social Services State Division: Division of Social Services Federal Program: Temporary Assistance for Needy Families Assistance Listing Number: 93.558 Award Number and Year: 2501DETANF (10/1/2024 – 9/30/2025) 2401DETANF (10/1/2023 – 9/30/2024) 2301DETANF (10/1/2022 – 9/30/2023) Compliance Requirement: Allowable Costs/Cost Principles – Time and Effort Reporting Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance Recommendation: The Division should enhance procedures, implement proper controls, and perform additional training over time and effort reporting. The Division should not seek federal reimbursement unless it can substantiate that the time and effort was dedicated to the federal program. Documentation should be readily available for audit. Explanation of disagreement with audit finding: There is no disagreement with the audit findings. Action taken in response to finding: The following action will be taken to improve the current process. • The Fiscal unit is implementing procedures to serve as the central repository for all Time and Effort records, replacing the current practice of storing these forms at the program manager level. • Implement internal controls for Time and Effort Reporting. • Confirm that T&E information submitted is accurate and reconciled. • Provide training for Time & Effort certification. Name(s) of the contact person(s) responsible for corrective action: Joanne Sunga – Fiscal Administrator Tracey Rogers-Mitchell – OSEC Chief of Administration Secil Onat – DSS Chief of Administration Planned completion date for corrective action plan: June 30, 2026

Reference Number: 2025-016 Prior Year Finding: No Federal Agency: U.S. Department of Health and Human Services State Department Name: Department of Health and Social Services State Division: Division of Public Health Federal Program: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC), COVID-19 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Assistance Listing Number: 93.323 Award Number and Year: NU50CK000497 (8/1/2019 – 7/31/2027) NU51CK000334 (8/1/2024 – 7/31/2029) Compliance Requirement: Allowable Costs/Cost Principles – Time and Effort Reporting Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Recommendation: The Division should reevaluate its current process, implement proper controls, and perform additional training over time and effort reporting. The Division should not seek federal reimbursement unless it can substantiate that the time and effort was dedicated to the federal program. Documentation should be readily available for audit. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: • ELC Financial Lead will work with DPH Support Services to track all recoded time against grant. • As recodes are identified, time certifications for affected staff will need to be revised and filed appropriately. Name(s) of the contact person(s) responsible for corrective action: Teresa Reed, Wes Holleger, Deborah Fisher Planned completion date for corrective action plan: April 1, 2026.

Reference Number: 2025-008 Prior Year Finding: 2024-010 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: UI372152255A10 (10/1/2021 – 12/31/2024) UI393142355A10 (10/1/2022 – 12/31/2025) 24A55UI000067 (10/1/2023 – 12/31/2026) 25A55UI000116 (1/1/2024 – 12/31/2027) Compliance Requirement: Allowable Cost/Cost Principles – Time and Effort Reporting Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Recommendation: The Division should reevaluate its current process, implement proper controls, and perform additional training for time and effort reporting. The Division should not seek federal reimbursement unless it can substantiate that the time and effort was dedicated to the federal program. Documentation should be readily available for audit. Explanation of disagreement with audit finding: We agree that the division was unable to provide documentation supporting the timesheet approval as asserted. However, we respectfully disagree that the lack of timesheet approval translates into charging the program with unallowed costs. It’s important that the auditors understand that the division’s responsibility to ensure that payroll charges to the program are appropriate begins with ensuring that each employee tasked with performing program functions are hired into the correct division internal program unit (“IPU”). And then further within that IPU, instruct employees to use a specific activity code that is assigned to various federal programs. In the samples reviewed, employees properly used the correct activity code to record time for the work performed. Action taken in response to finding: The business will continue to refine its process for demonstrating the appropriateness of allowed payroll costs to the program and present a substantial action plan in late FY2027. Name(s) of the contact person(s) responsible for corrective action: Marie Cameron, Director of DUI Planned completion date for corrective action plan: March 31, 2027

Reference Number: 2025-003 Prior Year Finding: No Federal Agency: U.S. Department of Health and Human Services State Department Name: Department of Health and Social Services State Division: Division of Public Health Federal Program: WIC Special Supplemental Nutrition Program for Women, Infants, and Children Assistance Listing Number: 10.557 Award Number and Year: 241DE701W1003 (10/1/2023 – 9/30/2024) 251DE701W1003 (10/1/2024 – 9/30/2025) Compliance Requirement: Allowable Costs/Cost Principles – Time and Effort Reporting Type of Finding: Significant Deficiency in Internal Control Over Compliance Recommendation: The Division should enhance procedures, implement proper controls, and perform additional training over time and effort reporting. The Division should not seek federal reimbursement unless it can substantiate that the time and effort was dedicated to the federal program. Documentation should be readily available for audit. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: On March 12, 2026, an email to all WIC supervisors was issued notifying the dates that all T&E reports are due to the Administration Office. The policy was reiterated during the March 17,2026 Supervisors meeting held via Zoom. Name(s) of the contact person(s) responsible for corrective action: Joanne White – Public Health Program Administrator Planned completion date for corrective action plan: March 31, 2026

FINDING 2025-010 Name of Responsible Individual: Lisa Simon, CPA, CFO Corrective Action: The University acknowledges that the internal controls surrounding the allowable costs during fiscal year 2025 were lacking and needed to be reinforced for future fiscal years. With the hire of the new CFO and HR leader post June 30, 2025 – these enhanced controls and processes have been put in place, and all payroll and other expenses are detailed, supported, and filed appropriately. Anticipated Completion Date: Completed Fall 2025 and Ongoing