Corrective Action Plans

Ignacio School District has already taken steps in changing the overall process of managing our Federal Award grants and overall year-end closing entries. The district will be working closely with our new auditors to ensure that Single Audits are completed annually moving forward. Our district has implemented scheduled monthly Requests For Funds and budget reviews for each grant to confirm that the grants are being spent according to their approved applications. The Superintendent and Finance Director meet to review the overall process to ensure grant compliance. This includes, but is not limited to assuring that the district charges a de minimis indirect cost rate and submitting End of Year reports to CDE. The district has assigned responsibility of Federal Grant oversight to new personnel. To assure a segregation of duties, there are three district office personnel involved in the management and oversight of the grants. The district has also been trained on proper closing entry procedures for all year-end closing entries and year-end Annual Financial Reporting of grants.

The County acknowledges the importance of proper documentation for subrecipient monitoring. To address this finding, the County will implement the following: 1. Enhanced Review Process – County departments responsible for subrecipient agreements will conduct a thorough review of subrecipient monitoring activities to ensure compliance with federal and regulations. This will include verifying that all required monitoring steps, including risk assessments and are properly conducted and documented. 2. Documentation and Record-Keeping Improvements – County departments will be required to maintain clear and consistent documentation of all subrecipient monitoring activities. This includes risk assessments, financial reports, site visit records (if applicable), and any corrective actions taken.

Condition: During the years ended June 30, 2023, 2024, and 2025, National Church Residences entered into capital advance grant agreements (Section 202) with HUD, which were directly funded to affiliates of National Church Residences, and, in turn, National Church Residences entered into notes receivable from the related parties in the same amount as the capital advance. The loan expenditures and outstanding loan balances related to the ALN 14.157 U.S. Department of Housing and Urban Development - Supportive Housing for the Elderly (Section 202) - Capital Advance were not included on the SEFA for the years ended June 30, 2025, 2024, and 2023. Planned Corrective Action: National Church Residences is in the process of establishing additional layers of internal controls to help ensure that all new agreements and any subsequent modifications are captured timely, completely, and accurately within the special purpose financial statements and SEFA. Contact person responsible for corrective action: Lindsey Dehring, Vice President of Financial Planning & Analysis Anticipated Completion Date: July 1, 2026

Program: COVID-19 - Epidemiology and Laboratory Capacity for Infectious Disease (ELC) Assistance Listing No.: 93.323 Federal Grantor: U.S. Department of Health and Human Services Passed-through: California Department of Public Health Award No.: COVID-19ELC114 Award Year: 2021 Compliance Requirement: Other - Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) §200.510(b) - Schedule of Expenditures of Federal Awards Type of Finding: Material Weakness in Internal Control Over Compliance Department’s Management Response: Management agrees with the recommendation to enhance internal controls to ensure federal expenditures are reported accurately and completely on the SEFA in accordance with the Uniform Guidance. View of Responsible Officials and Corrective Action: To ensure compliance with §200.510(b) of the Uniform Guidance, the Auditor Controller’s Office will issue additional detailed instructions clarifying the period covered by the amounts to be reported when requesting departmental information for the County’s SEFA. These clarifications will support consistency, accuracy, and improved internal controls over federal expenditure reporting. Name of Responsible Persons: Jason McGuire, Deputy Director, Auditor-Controller Implementation Date: August 2026

The Town will ensure that all grant funds are accounted for in the proper budget year, to include revenue and expenses. This will involve Finance staff and the grant manager for each grant noting the proper budget year on invoices and revenue receipts. A label will be created to note these items. Finance staff will also create new line items to ensure separation of grants from other special revenue. Additionally, the Town will reflect Retainage Payable on balance sheets. The estimated completion date is June 1, 2026. Jay Hendrix, Town Manager, is responsible for overseeing the corrective action plan and that implementation occurs by the estimated completion date.

The Town will ensure that all grant funds are accounted for in the proper budget year, to include revenue and expenses. This will involve Finance staff and the grant manager for each grant noting the proper budget year on invoices and revenue receipts. A label will be created to note these items. Finance staff will also create new line items to ensure separation of grants from other special revenue. Additionally, the Town will reflect Retainage Payable on balance sheets. The estimated completion date is June 1, 2026. Jay Hendrix, Town Manager, is responsible for overseeing the corrective action plan and that implementation occurs by the estimated completion date.

Program: Congressionally Recommended Awards / HOME Investment Partnerships Program / Homeland Security Grant Program / Epidemiology and Laboratory Capacity for Infectious Disease Federal Financial Assistance Listing Number: 16.753 / 14.239 / 97.067 / 93.323 Federal Grantor: U.S. Department of Justice / U.S. Department of Housing and Urban Development / U.S. Department of Homeland Security / U.S. Department of Health and Human Services Award No. and Year: Multiple Compliance Requirements: Other – Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) §200.510(b) - Schedule of expenditures of Federal awards Type of Finding: Material Weakness in Internal Control Over Compliance Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) §200.510(b) states that the auditee (the County) must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements, which must include the total federal awards expended as determined in accordance with §200.502. §200.331 of the Uniform Guidance states the County is responsible for making case-by-case determinations to determine whether the entity receiving the Federal funds is a subrecipient. In addition, §200.303 of the Uniform Guidance states that the County must establish and maintain effective internal control over the federal awards, including controls over the accuracy of program information and expenditure amounts. Condition: During our audit procedures performed over the SEFA we noted the following: • The Sheriff-Coroner Department did not properly identify the amount expended for the Congressionally Recommended Awards, AL No. 16.753. The expenditures reported by the Department were overstated by $2,638,516. • The Orange County Community Resources Department did not properly identify the amount of Federal funding passed through to subrecipients for the HOME Investment Partnerships Program, AL No. 14.239. The amount passed through to subrecipients reported by the Department was overstated by $4,500,624. • The Sheriff-Coroner Department did not properly identify the amounts expended for the Homeland Security Grant Program, AL No. 97.067. The expenditures reported by the Department were overstated by $715,489. • The Orange County Health Care Agency (HCA) did not properly identify the amount expended for the Epidemiology and Laboratory Capacity for Infectious Disease program, AL No. 93.323. The expenditures reported by the Agency were overstated by $486,000. Cause: As a result, the County lacked adequate internal controls to ensure the SEFA is completely and accurately stated. Specifically, the County’s processes for recording and tracking expenditures of Federal awards are not designed so that expenditures are identified when incurred. In addition, the County’s processes for identifying and reporting subrecipients are not designed to ensure appropriate reporting on the SEFA. Effect: Adjustments to the SEFA were required. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: No sampling was used. Program expenditures and amounts passed through to subrecipients were reconciled to the supporting records. Repeat Finding from Prior Years: No. Recommendation: The County, including all its reporting departments, should follow existing policies, procedures and internal controls to ensure all expenditures and amounts passed through to subrecipients are accurately tracked and reported on the SEFA. Personnel knowledgeable of federal expenditures should review amounts coded to federal programs for completeness and accuracy. The SEFA should be prepared and reviewed in a timely manner and reconciled to underlying records as well as the basic financial statements. Management Response and Corrective Action Plan: Health Care Agency: 1. Person Responsible: David Santalahti, HCA Claims & Financial Reporting Manager 2. Corrective action plan: HCA Accounting will review and enhance its procedures and training for analysis and tracking federal award expenditures to ensure expenditures are reported in the appropriate fiscal year period. 3. Anticipated Implementation date: June 30, 2026 Orange County Community Resources: 1. Person Responsible: Bill Malohn, OCCR Accounting Manager 2. Corrective action plan: Concur. OCCR has established policies and internal controls to ensure all expenditures and amounts passed through to subrecipients are accurately tracked and reported on the SEFA. Appropriate personnel review amounts coded to federal programs for completeness and accuracy. We prepare and review the SEFA in a timely manner and reconcile to underlying records as well as the basic financial statements. In this particular situation, we miscategorized one provider as a subrecipient and reported the related funding as such on the SEFA. This oversight had no impact on the total amount we reported on the SEFA. We will be sure to follow our policies and procedures to ensure accurate SEFA reporting. 3. Anticipated Implementation date: February 2, 2026 Sheriff-Coroner: 1. Person Responsible: Monique Vansuch, Fiscal Administrator 2. Corrective action plan: The Sheriff-Coroner Department acknowledges the finding and recognized federal grant expenditure incurred is defined as when expenditures are delivered and/or services are performed rather than when the expenditures are paid. We will strengthen the internal controls to ensure grant expenditures are reported per the Uniform Guidance. 3. Anticipated Implementation date: June 30, 2026

2025-001: Allowable Costs/Cost Principles Federal Agency: Department of Education Federal Program: Educational Stabilization Fund ASSISTANCE LISTING Numbers: 84.425C – Governor’s Emergency Education Relief Fund 84.425R – Emergency Assistance to Non-Public Schools 84.425U – Elementary and Secondary School Emergency Relief Fund 84.425V – Emergency Assistance to Non-Public Schools Award Period: July 1, 2024 – June 30, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Recommendation: We recommend that the University evaluate its cutoff procedures to ensure that federal costs are identified and reported in the correct fiscal year. We also recommend that the University evaluate its internal controls to ensure that federal awards are properly identified as such at inception. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: OSU is implementing a campus-wide Administrative Modernization Program (AMP) to update technology, improve efficiencies, and ensure a comprehensive internal control environment. This modernization includes redesigning the university’s administrative and grant processes, including budget development, payroll lifecycle, employee recruitment, grant effort reporting, procurement, and others. A primary aspect of this optimization is a transition of the university’s enterprise resource planning (ERP) system from Banner to Workday effective July 1, 2026. To reflect this system transition, OSU’s actions in response to the finding will be taken in two stages: 1. For FY26, the Division of Research and Innovation (DRI) will run reports and screen for anomalies and mismatches of revenue type and fund type to identify awards with the correct federal fund when a federal program is identified with an ALN#. The screening will take place before the fiscal year end, allowing time for corrections to be made in Banner while the fiscal year is still active. 2. For FY27 and beyond, rather than a warning, critical custom validations will be required and established in Workday as follows: • Any award that uses an ALN# also must include the appropriate Fund and Revenue Category worktags on the award line • Any award with a federal sponsor or federal prime sponsor must have ALN# entered • Any award with a federal sponsor or federal prime sponsor must include the appropriate Fund and Revenue Category worktag on the award line Name of the contact person responsible for corrective action: Jennifer Creighton, Associate Vice President for Research Administration, Finance and Operations Planned completion date for corrective action plan: Corrective action to screen for anomalies and mismatches of revenue type and fund type in Banner to ensure awards are identified with the correct federal fund will occur by June 30, 2026. The establishment of custom validations in Workday to ensure identification of federal awards will occur and be ongoing with the new system implementation after July 1, 2026.

2025-003 Prparation of and internal controls over SEFA preparation (Material Weakness). Federal Agency: U.S. Department of Education. Program Name: Child Nutrition Cluster; Education Stabilization Fund. Assisstance Listing Number: 10.553,10.555, 10.559; 84.425. Award Period: June 30, 2025. RECOMMENDATION: The Board of Education and managment shoudl review the financial reporting process. Once this review is cimplete, the District should then perform a risk assessment to determine the best way to implement appropriate intnernal controls over financial reporting to ensure that the District prepares the schedule in conformity with Uniform Guidance. Action Taken (unauditied): managment plans to have the Board Clerk and the Board Treasurer complete the Schedule of Expenditures together and to ensure that the correct expenses are being reported.

2025-006 – Internal Control Deficiency in Financial Reporting – Untimely Recording of Grant Program Expenditures Cluster: Not applicable Sponsoring Agency: United States Agency for International Development (USAID) Award Name: USAID Foreign Assistance for Programs Overseas Award Number: 7200AA19CA00018, 7200AA21LE00003 Assistance Listing Title: USAID Foreign Assistance for Programs Overseas Assistance Listing Number: ALN 98.001 Award Year: 2024-2025 Pass-through entity: Not applicable Compliance Requirement: Schedule of Expenditure of Federal Awards Reporting and Period of Performance On January 1, 2024, the campus converted from the Kuali Financial System (KFS) to the Oracle Cloud financial system (AE). There was a pre-conversion blackout period from mid-November 2023 through January 1, 2024. Additionally, as part of this transition, advance account balances were not initially migrated and were subsequently moved into AE projects. This resulted in changes to how these balances were tracked and processed. Initially, these balances were placed in a single project, and there were delays in processing liquidations until balances could be reconciled and distributed to the individual projects established for each sub awardee. Due to these delays and the pre-conversion blackout period, a backlog of transactions was created. Reconciliations and liquidations were subsequently processed in September 2024. As of September 2024, the process for advance liquidations has been implemented, including distributing balances to the appropriate projects. These procedures are now in place and have been fully implemented through the established process. For inquiries regarding this finding, please contact Mario Reina-Guerra at mreinaguerra@ucdavis.edu.

Reference Number: 2025-014 Prior Year Finding: No Federal Agency: U.S. Environmental Protection Agency State Agency: Department of Environmental Conservation Federal Program: Drinking Water Sate Revolving Fund Assistance Listing Number: 66.468 Award Number and Year: 99121S23 (10/1/2023 – 9/30/2030) 99121E23 (10/1/2023 – 9/30/2030) Compliance Requirement: Reporting – Schedule of Expenditure of Federal Awards Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance Recommendation: We recommend the Department review and enhance internal controls and procedures for SEFA preparation to ensure that expenditures are reported accurately on the SEFA. Views of responsible officials: Management agrees with the finding. Corrective Action Plan: This error was caused by a data entry error by our Agency Central Office as they are the entity that enters all vouchers into the Vision Accounting system. This error was discovered by us during our normal monthly review of all federal grant expenditures that we complete before we process our federal draws. Unfortunately, this error occurred in June, which is the last month of the fiscal year, and the reviews happen after the month is closed in the accounting system and we can run all our reports for the month. That being the case, the correction had to be entered in July which is a different fiscal year and was not reflected in the data that was used to complete the SEFA for the prior fiscal year. As a result, we have reviewed our internal controls to more effectively prevent and/or detect errors upon transaction entry into Vision in collaboration with the Agency Central Office and to also ensure expenditures are reported accurately on the SEFA, by incorporating the following additional steps when preparing the SEFA: 1. Running a report from the state finance system (VISION) that will show any corrections that were made that pertain to the prior fiscal year transactions and adjust the SEFA amounts accordingly. 2. Running an additional balance report from the Loans and Grants Tracking System (LGTS) to help reconcile total amounts spent on loan disbursements under the Assistance Listing Numbers (ALN) and compare that to the total transactions in Vision to ensure they match. Scheduled Completion Date of Corrective Action Plan: July 1, 2026 Contacts for Corrective Action Plan: Mercedes Piñón, AID Financial Manager III, mercedes.pinon@vermont.gov David Pasco, AID Financial Director I, david.pasco@vermont.gov

Reference Number: 2025-010 Prior Year Finding: No Federal Agency: U.S. Department of Transportation State Agency: Agency of Transportation Federal Program: National Infrastructure Investments Assistance Listing Number: 20.933 Award Number and Year: 69A36520401930BLDVT (8/1/2020 – 10/31/2026) CA0714 (4/29/2022 – 4/29/2032) CA0751 (5/1/2023 – 10/1/2028) CA0906 (1/24/2025 – 11/1/2030) Compliance Requirement: Reporting – Schedule of Expenditure of Federal Awards Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance Recommendation: We recommend the Agency review and enhance internal controls and procedures for payment processing and SEFA preparation to ensure that payments are properly coded in the accounting system and that expenditures are reported accurately on the SEFA. Views of responsible officials: Management agrees with the finding. Corrective Acton Plan: Rail Program Manager • Establish and maintain database with all federal grants and federal funding CFDA/ALN’s. • Coordinate between Budget & Business Support Services / Federal Programs and the Accounting Unit to establish EA’s. • Train all project managers on the collaboration and database management process for gathering and maintaining all required codes and information related to federal funding. • For FRA funded projects the Program or Project Manager will include the federal grant award document when submitting an EA setup request. Budget & Business Support Services / Federal Programs • Upon receipt of a new EA request from the RAIL Program or Project Manager, the Finance EA Setup resource (Patrick MacCormick) will complete the following steps to verify the ALN: o If an FHWA project:  Search the federal project in FMIS. If the federal project does not exist in FMIS,  Make a request to the Federal Programs Team to set up the federal project in FMIS. o All other projects:  Request the grant award from the Program or Project Manager. If the grant award has not yet been distributed,  Request the Notice of Funding Opportunity (NOFO) from Grants.gov or SAM.gov from the Program or Project Manager. o Review the EA setup request and the ALN identified in any one of the methods above to ensure the Assistance Listing Number (ALN) is consistent between both documents. o If a discrepancy is identified between the ALN listed on the EA request and one of the methods above, return the request to the Program or Project Manager for clarification before proceeding with setup. • Federal Program Quarterly FHWA Reporting o Generate a report of all active federal projects with associated ALNs listed in FMIS and AOT EAs.  The report shall pull in ALNs from the previous quarter’s report and flag any changes.  Send email to the Finance EA Setup resource and Accounting Unit containing the generated report. Accounting Unit: • The Accounting Unit will perform an audit of all FRA EA’s and ask the Rail Program Manager to verify. o Any incorrect or missing CFDA/ALN’s will be addressed in STARS. • Prior to year end, the Accounting Unit will contact the Rail Division again. o A list of the EA’s and expenditures with the CFDA/ALN’s from STARS for the year will be provided. o Rail will be asked to verify and certify that Accounting has captured the amounts in the correct CFDA/ALN’s. o Note: These processes have been put in place for the FY26 reporting cycle. (Per Diane Bigglestone) Scheduled Completion Date of Corrective Action Plan: April 1, 2026 Contacts for Corrective Action Plan: Diane Bigglestone, Financial Director, diane.bigglestone@vermont.gov Paul Libby, Senior Project Manager, paul.libby@vermont.gov Patrick MacCormack, Financial Director, patrick.maccormack@vermont.gov

Views of Responsible Officials and Planned Corrective Action In coordination with detailed discussions with the auditors, DPS has determined that its existing quarterly reconciliation process within SHARE remains an appropriate and effective control for the preparation of the Schedule of Expenditures of Federal Awards (SEFA). This process is designed to review grant-related transactions for invoicing accuracy, monitoring, and compliance and provides reasonable assurance over grant oversight and expense allowability. In addition, at fiscal year-end, DPS will perform a SEFA-specific review from a revenue perspective to confirm that federal revenue recorded in the general ledger and reimbursement requests are complete, accurate, and consistent with grant-related expenditures. This layered review process is intended to identify and resolve any instances in which expenses may be evaluated or adjusted for reimbursement purposes while remaining appropriately recorded within grant activity in the accounting records. Management concurs that the expenditure amounts reported on DPS’ final SEFA submitted to auditors related to AL 97.036 Disaster Grants – Public Assistance (Presidentially Declared Disasters) were inaccurate. While DPS had carefully and accurately tracked the allowable expenditures of $583,271 for two FEMA events (DR 4795 Roswell South Fork Salt Fire $543,587.72 & DR 4843 NM Roswell Flood $39,683.22) and discussed in detail with the auditors how allowable costs were determined, our submitted SEFA had a formula error which resulted in the two FEMA events not being accurately included in the total. Furthermore, management concurs that the preparation and analysis of a revenue-based SEFA, performed in addition to the expenditure-based SEFA, resulted in net adjustments of $25,998 to the previously submitted FY25 SEFA. Management concurs that DPS did not have a pre-existing formal procedure specific to the receipt and processing of federally donated surplus and usable personal property at the time of this transaction. However, management emphasizes that the donation of three federally provided robots—valued by the donor at $150,000 each for a total of $450,000—was highly unusual in nature and outside the scope of DPS’s routine grant and property transactions. As a result, DPS undertook extensive research and consultation to ensure compliance with all applicable federal requirements, as well as GASB and GAAP standards, prior to final accounting and reporting treatment. Management has created procedures to ensure the donated assets are correctly valued and included in DPS’s capital asset listing. DPS will record the donated capital assets in the government wide financial statements as capital assets and record as a revenue and expense transaction in the fund financial statements. Management further notes that DPS will follow GASB 33 and GASB 72 for non-exchange transactions when this type of transaction reoccurs. Corrective Action Plan Timeline: Process for federally donated useable personal property/assets has been implemented as of December 1, 2025. Updated SEFA process to be completed no later than October 9, 2026. Designation Of Employee Position Responsible For Meeting Deadline: CFO Deputy ASD Director ASD Director

The Authority will develop and implement a standardized fiscal year transition and grant charging process to ensure controls are in place for accurate and timely recording of grant eligible expenditures. As part of this process, the Authority will develop a verification checklist for all funding source reclassification journal entries to ensure compliance prior to posting. This process will: - Identify all stakeholders responsible for year‑end grant reconciliation and reporting. - Establish a required review and approval process to be completed before any change in funding source or charging mode. - Update Accounting Policies and Procedures Manual to include guidelines to limit reclassification of expenditures incurred in prior fiscal years. - Set a formal annual cut-off date for Program Offices to request current year funding source reclassifications, allowing sufficient time for the Funds and Grants Management team to review and meet fiscal year‑end reporting deadlines. - Refine current monitoring mechanism for “yet‑to‑bill” transactions throughout the fiscal year for transferred transactions that originated in the general ledger to ensure all federal expenditures incurred within the period are reviewed and reported in accordance with the accrual basis of accounting. - Ensure the requirements for eligibility of expenses for Federal grants from 2 CFR 200.403 are enforced.

Responsible Person(s): Darin Moore, Deputy Director of Administration and Outreach; Sarah Boggs, Accounting Manager for Planning and Finance; Suzanne Robinson; Tim Springer, Budget Manager for Planning and Finance Corrective Action Planned: Review the current DWR process and determine whether DWR should petition the Comptroller for an exception to CAPP Topic 20605 or modify the DWR process to the “split coding” method instead. This will include: 1.) Evaluation of grant program guidance to ensure no obstacles exist from the Federal Awarding Agency to changing DWR's current methodology; 2.) Meeting and discussing with other (like) state agencies for policy, procedure, and training examples for split coding grant eligible expenditures; 3.) Scheduling meetings with Department of Accounts and the previous APA Audit Team to discuss DWR's evaluation, decision, and next steps; 4.) Developing and implementing new DWR policies and training to ensure compliance with the approved methodology. (Estimated completion date: July 1, 2026) Update current policies and procedures to conform with CAPP Manual Topic 20405 and to enhance the agency's current supporting documentation for all journal entries. At a minimum, these new policies and procedures will require that Voucher ID/Expense Report IDs that are moved within a journal entry are documented in the journal reference line in the system to improve transparency, will add more detailed explanations to justify coding changes, will upload applicable documents into the system to assist in manager approval, and will maintain all documentation centrally in one location for easier access and review. (Estimated completion date: July 1, 2026) Publish and maintain a sustainable federal drawdown schedule, by: 1.) Evaluating DWR's current federal drawdown schedule in accordance with current policies, procedures, employee workload, cashflow, and Federal Awarding Agency's guidance; 2.) Developing specific controls, and revised job descriptions as needed to ensure the drawdown schedule can be consistently maintained; and 3.) Incorporating both the new schedule and controls into appropriate policies and procedures to ensure accountability. (Estimated completion date: June 1, 2026) Evaluate current policies, procedures, and practices pertaining to how DWR manages and records Program Income. Develop and update policies and procedures to ensure compliance with CAPP 20205. Provide training on new policies and procedures to employees within the Planning and Finance Division. (Estimated completion date: June 1, 2026) Review current internal procedures for reporting federal expenses on the SEFA and Attachment 15 and identify training gaps. Enlist training support from Department of Accounts and/or other state agencies to address training gaps. Develop new written policies and procedures, along with new supporting documentation requirements, to conform to SEFA and Attachment 15 guidelines and expectations. Provide training on new policies and procedures to employees within the Planning and Finance Division. (Estimated completion date: July 1, 2026) Review all other written policies and procedures for administering federal grants and contracts, and develop and update as necessary to address insufficient guidance and noncompliance. (Estimated completion date: August 31, 2025) Estimated Completion Date: 7/1/2026

Reference Number: 2025-001 Name of Contact Person: Julie Bondarchuk, Financial Controller Corrective Action: The expenditure occurred in calendar year 2020 and 2021. Since these funds were emergency funds, no deferred revenue was accrued since staff was uncertain of whether costs would be eligible for reimbursement. Final revenues of $101,355 were received in FY2025, and staff recorded the revenue received on the SEFA, but not the expenditure. Going forward, staff will report expenditures on the SEFA when eligible expenditures are approved by FEMA. Proposed Completion Date: 6/30/2026

Views of Responsible Officials and Planned Corrective Action The County fully implemented a grant software program in FY 2026 to provide accurate and complete tracking and reporting of federal award expenditures. Finding resolution timeline: This has been resolved as of 12/4/2025. Designation of employee position responsible for meeting this deadline: Andrea Montoya (Deputy County Manager), Gabriella (Betty) Orosco (Assistant Finance Director) and Francine Mondello( Grant Administrator)

The District will implement procedure to ensure that grant activity is charged during the proper period and sufficient documentation is maintained.

Compliance Requirement: Other – Inaccurate reporting of the Schedule of Expenditures of Federal Awards Campus: Sacramento, Sonoma Recommendation: KPMG recommends the University implement a system of internal control that is designed and operating effectively to ensure the SEFA is complete and accurate. Corrective Action Plan: California State University, Sacramento The University concurs with the recommendation. The University will review and enhance its procedures and internal controls to ensure the SEFA is complete and accurate. Estimated Completion Date: July 2026 Contact person: California State University, Sacramento Tabitha Leeds Senior Director of Accounting Services (916) 278-4679 leeds@csus.edu Corrective Action Plan: Sonoma State University The University concurs with the recommendation. The University will review and enhance its procedures and internal controls to ensure the SEFA is complete and accurate. Estimated Completion Date: July 2026 Contact person: Sonoma State University David Crozier Associate Vice President, Financial Services (707) 664-3442 david.crozier@sonoma.edu

Condition: Controls were not in place to ensure that the schedule of expenditures of federal awards (SEFA) was complete and accurate. Planned Corrective Action: The Village has hired an outside contractor to assist with review of audit documents. Contact person responsible for corrective action: Penny Ray Anticipated Completion Date: 12/31/2025

Finding Reference: 2025-002 - Special Tests and Provisions — Accountability for USDA Foods— Questioned Costs: None Responsible Person: Todd Frease, CFO Actions & Timelines: 1. Valuation Policy (within 30 days from report issuance): Adopt an approved USDA valuation method (WBSCM price or rolling average) and document the policy. 2. Formal Inventory SOPs (within 60 days of report issuance): Issue written SOPs covering count preparation, reconciliation, and documentation retention per 7 CFR §250.19. 3. Training (within 60 days): Train finance and inventory staff on valuation requirements and new SOPs. 4. Annual Monitoring (ongoing): Review valuation application and inventory reconciliations annually and report results to leadership. Anticipated Completion Date: Initial policy and SOPs within 60 days of report issuance; ongoing monitoring thereafter.

Finding Number: 2025-002 Condition: Lakeland did not have adequate controls in place to ensure the SEFA was prepared to include appropriate expenditures for the Economic Development Cluster in the proper period. Planned Corrective Action: The College will establish the proper controls to ensure that the SEFA is prepared based on the timing of the underlying activity rather than payment dates. Contact person responsible for corrective action: David Cummins, Vice President for Administrative Services and College Treasurer Anticipated Completion Date: December 2025

Recommendation: We recommend management establish an informal procedure to reconcile grant funds received with funds expended on a regular basis. We also recommend management implement a formal procedure to reconcile the SEFA with the general ledger at year end. Corrective Action: The Comptroller will reconcile this report on a monthly basis making sure that all grants and other Federal / State expenditures are on the SEFA and that the two numbers reconcile with the general ledger. This will be kept in a notebook and the calendar kept in the Comptroller’s desk. The Comptroller will also create a folder in the business office folder on the server and input the current SEFA in this folder and show any discrepancies on a monthly basis and every time this report is run for drawdowns. This process will start immediately. The Comptroller will also make sure at year end that all items are on this report and they have been reconciled with the general ledger. This process will also be in the notebook and calendar within the desk of the Comptroller.

The Authority will consider implementing the recommendation. The Authority is actively working on rectifying the finding.

Management plans to develop proper written policies and procedures for internal control over compliance to ensure accuracy and completeness in the preparation of the schedule as required by Uniform Guidance.