Corrective Action Plans

Funds will not be drawn down until an invoice or proper pay request is received, and purchase order or contract are in hand, and payment is made promptly within no more than three business days. The Schedule of Expenditures of Federal Awards will be reviewed by Management that all funding received and reported has be fully expensed by the Authority prior to submission on the Hinkle system for audit.

ECA agrees with this finding and has created a policy for identification and verification of funding sources for all contracts. This will ensure that all contracts are screened for federal funding regardless of what is listed in the contract/award/agreement. ECA will review its existing contracts to confirm all funding sources.

Finding #2025-006 - Federal Grants Management (Schedule of Expenditures of Federal Awards) Corrective Action Planned: Management will tie the preparation of the Schedule of Expenditures of Federal Awards back to the contract tracker used to monitor each grant's period of performance and expenditure activity, ensuring the SEFA is built directly from, and reconciled to, that tracker before submission to the auditor. Anticipated Completion Date: Beginning with the Schedule of Expenditures of Federal Awards for the year ended December 31, 2026. Responsible Party: Finance Manager, with oversight by the President.

Program Federal Financial Assistance Listing Number.: 21.027 / 14.239 Federal Grantor: U.S. Department of the Treasury / U.S. Department of Housing and Urban Development Award Number and Year: Affects all grant awards included under assistance listing 14.239 and 21.027 on the Schedule of Expenditures of Federal Awards. 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 Management’s Response: We concur. Views of Responsible Officials and Corrective Action: The finance staff and program manager did not fully understand the distinctions between subrecipient and beneficiary, resulting in inaccurate reporting of these amounts. The City Manager and relevant department managers met to address this issue and recommend that staff undergo appropriate training. The training schedule will be discussed further, taking into consideration availability, location, and budget constraints. This was corrected in the Single Audit Report which will be filed with the Federal Government. Name of Responsible Person: Finance Leadership and Grant Program Managers Projected Implementation Date: August 1, 2026

A designated Finance staff member with knowledge of the Uniform Guidance requirements will be responsible for overseeing SEFA preparation for each fiscal year-end. A grant-by-grant SEFA reconciliation will be completed prior to yearend close, with particular attention to period-end cutoff. The SEFA will be independently reviewed by the Finance Director and compared to grant expenditure reports before the audit commences. Management will engage its external accountants earlier in the year-end close process.

Corrective Action Plan FINDING - 2025-001 - Federal Award Program Name: 93.958 Senior Services Criteria: Federal awards are required to be reported on the Schedule of Expenditures of Federal Awards (SEFA) when expenditures are incurred (2CFR Part 200). Condition: The Organization had a federal award received in a prior year that was not originally included on the SEFA. Cause of Condition: The Organization did not have adequate procedures in place to identify all federal awards and ensure they were properly reflected on the SEFA. Potential Effect of Condition: The Organization’s federal award expenditures not being included in the audited SEFA. Views of Responsible Officials: Management has acknowledged the finding and added the award expenditures to the SEFA. Corrective Action: The Controller will implement formal federal grant management policies and procedures to ensure all federal awards are properly identified, tracked, and reported on the SEFA in accordance with 2 CFR Section 200.502. Key actions include: - Developing and implementing a written federal grant and loan management policy, subject to Board approval. - Establishing and maintaining a centralized electronic repository of all federal grant and loan documentation, including key award details necessary for SEFA reporting. - Providing training to accounting and program staff responsible for identifying and tracking federal awards. - Performing quarterly reviews of the federal awards repository to ensure completeness and accuracy of information used in SEFA preparation. - The Controller will perform quarterly reviews, and the CFO will review and approve the completeness of the federal awards listing. Procedures will be implemented immediately and in place for the next SEFA reporting cycle.

DJFS will begin to use project numbers to allow for an additional check of all amounts reported. DJFS is also going to provide federal grant information to the Auditor’s office as soon as they complete their final report in order to give the Auditor’s office adequate time to review the information with MUNIS and will afford the Auditor’s office more time to compile the SEFA and have a secondary review to avoid any computational or clerical errors.

Finding No. 2025-001 Significant Deficiency in Internal Control over Compliance, Other Matters Condition The Organization had revisions to the SEFA and management’s review and approval process did not detect the following errors that were identified during the audit procedures performed: - An incorrect de minimis indirect cost rate was used and charged to a federal award. - Approximately $65,000 of federal expenditures were omitted from the initial SEFA. - Subrecipient costs from the prior year were charged to the current year due to incomplete accruals in the prior year. As a result, the SEFA was not complete or accurate prior to submission for audit. Planned Corrective Action: Management concurs with the findings and related recommendations. While the Organization completed its federal award activity in May 2025 and does not currently anticipate additional federal award activity, it recognizes the importance of compliance with grant reporting requirements, including the accurate preparation of the Schedule of Expenditures of Federal Awards (SEFA). In response to this finding, the Organization has taken the following corrective actions: Indirect Cost Rate: Updated our grant setup checklist to ensure the correct de minimis indirect cost rate is applied. The Organization has initiated and is currently processing the repayment of the overcharged indirect costs to the primary awardee. SEFA Completeness & Year-End Cutoff: Implemented a formal year-end SEFA reconciliation procedure. This includes a secondary review by the Director, Accounting to cross-reference general ledger federal expenditures against grant award agreements and to verify that all subrecipient accruals are recorded in the proper fiscal period. These improvements in our review and approval functions are designed to prevent future reporting omissions and ensure timely, accurate SEFA preparation should the Organization be subject to Single Audit requirements in the future. Anticipated Completion Date: July 31, 2026 Name of Contact Person: Melinda O’Leary, Chief Financial Officer & Vice President If the Cognizant or Oversight Agency for Audit has questions regarding this plan, please call Melinda O’Leary, Chief Financial Officer & Vice President at 571-483-1324.

SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS – ALL FEDERAL PROGRAMS 2025-002 Reporting Compliance Requirement – Schedule of Expenditures of Federal Awards (SEFA) Finding Summary 2 CFR § 200.510 requires that the City prepare appropriate annual financial statements, including the Schedule of Expenditures of Federal Awards (SEFA), which must include the total federal awards expended as determined in accordance with 2 CFR § 200.502. The City did not have proper controls in place to ensure completeness of the SEFA and compliance with this requirement. During our audit, we noted the City did not have sufficient controls in place to ensure the accurate preparation of the SEFA in compliance with this requirement. The City’s SEFA for fiscal 2025 was overstated by $147,700 in federal expenditures due to the inclusion of costs that were incurred in the previous fiscal year. Corrective Action Plan Actions Planned – The SEFA overstatement resulted from including prior-year expenditures in the 2025 reporting period. The City did not prepare a SEFA in the previous fiscal year because federal expenditures did not meet the Single Audit threshold; this contributed to the oversight in tracking the timing of eligible expenditures. To strengthen the year-end reporting process, the City has implemented updated procedures requiring a grant-level reconciliation of expenditures and revenues at year-end to ensure they are recorded in the proper fiscal period before preparing the SEFA. Federal grant coordinators and Finance Department staff will jointly review federal expenditures for accuracy and timing. This strengthened process will help ensure complete and accurate federal expenditure reporting in the SEFA. Official Responsible – Kim Sommerland, Finance Director. Planned Completion Date – June 30, 2026. Disagreement With or Explanation of Finding – The City agrees with the finding and has implemented additional procedures to strengthen controls over reporting. Plan to Monitor – The Finance Director will verify that year-end grant reconciliations are completed and reviewed prior to SEFA preparation.

Condition: The Outdoor Recreation Acquisition, Development and Planning program and the Drinking Water State Revolving Fund program expenditures on the schedule of expenditures of federal awards (SEFA) initially presented for audit were not complete and accurate. Planned Corrective Action: The Finance Department recently hired a new Grants Manager after being without this critical position for almost a year. The Grants Manager, along with the Grant Specialist and the Financial Reporting team accountants, plan to work together to improve the tracking and reconciliation of grant activity. In addition, the City implemented eCivis Euna Grants, a grant application, tracking, and reporting system, in November of 2025. The Grants Team will be working with Departments to document the grants process formally for the City and this will ensure that all grants are accounted for and tracked in the Euna grants system. This renewed capacity and new initaitives, supported by the new administrative cost recovery framework and the City's grants management platform, reflects a broader commitment to managing external funding with the same discipline applied to locally generated revenues. Contact person responsible for corrective action: Julie Cunningham, Grants Manager. Anticipated Completion date: 05/01/2027

Fergus has adopted and implemented policy: 252.0 Federal Funding Compliance to establish formal procedures and ensure ongoing compliance with applicable federal regulations, including 7 CFR 4280, Subpart A and 2 CFR 200. Anticipated completion date: August 31, 2026

MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE – SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS – ALL FEDERAL PROGRAMS 2025-001 Reporting Compliance Requirement Finding Summary 2 CFR § 200.510 requires that the City of South St. Paul, Minnesota (the City) prepare appropriate annual financial statements, including the Schedule of Expenditures of Federal Awards (SEFA), which must include the total federal awards expended as determined in accordance with 2 CFR § 200.502. During our audit, we noted the City did not have sufficient controls in place to ensure the accurate preparation of the SEFA in compliance with this requirement. The City’s SEFA for fiscal 2025 was overstated by $749,656 in federal expenditures, due to the inclusion of costs that were incurred in the previous fiscal year. Corrective Action Plan Actions Planned – The City has implemented new processes and procedures in 2026 which address this internal control finding to comply with the Uniform Guidance in the future. Finance department personnel will work with federal grant coordinators to assure that federal expenditures are accurately reported on the SEFA for all federal programs. Official Responsible – Clara Hilger, Finance Director. Planned Completion Date – June 30, 2026. Disagreement With or Explanation of Finding – The City agrees with this finding. Plan to Monitor – The City’s Finance Director, Clara Hilger, will ensure the new process and procedures implemented in this area ensure future compliance with the Uniform Guidance.

The Homeland Security and Emergency Management Agency (HSEMA) agrees with the conditions and recommendations of this finding. From PSJC’s perspective, this finding includes prior year (FY2020) approved expenditures not reported in FY2025 SF-425. We believe there was a transparency gap, as the discrepancies between the SF-425 reports and the SEFA expenditure totals should have been identified, disclosed and brought to our attention in prior audit engagements. Overall, we concur with the findings. The SEFA was adjusted in fiscal 2020 for expenditures that were not approved, however we did not capture the approved expenditures in the following years on SF425. Management will ensure that SEFA expenditure and SF 425 cash disbursements are aligned. We will perform first and second level review of the SF425 and SEFA. Management also concurs with the fact that the subrecipient passthrough on the SEFA should be non-district agencies. We will review the SEFA and report only non-district agencies as pass through to subrecipients.

The Department of Behavioral Health (DBH) Office of the Chief Financial Officer (OCFO) concurs with this finding. FFATA Reporting Compliance: In February 2026, the DBH Grants Management Office created an FFATA procedure to ensure compliance with timely FFATA reporting. As a result of this finding, the procedure has been updated to report bi-weekly rather than monthly to ensure reporting under 30 days. The GMO Director will also provide continuous training to staff outside of the GMO to ensure staffing will not become a barrier, as experienced in early 2026. As of June 1, 2026, all FFATA entries as of the May 25th purchase order (R071) report have been reported. Additionally, as we plan for the forthcoming electronic grants management system (eGMS) we’re in discussion to add a report feature that will provide needed info for FFATA entry i.e., UEI, FAIN, award amount and purchase order # to automate the process. SEFA Reporting Compliance: Prior to the submission of the SEFA, the grant expenditures will be reviewed with the Accounting Officer, The AFO, and the Grants Program Manager for a detailed review of the SEFA to confirm expenditures are correctly categorized by fund and grants, reconciles to the DIFS R019 report and reflects the amount expended for sub-recipients. Effective FY26, subrecipient totals are uniquely identified with an account number that will reflect in the R019 report as a subset of total expenditures. This report will be used to complete the SEFA going forward.

The Department of Behavioral Health (DBH) Office of the Chief Financial Officer (OCFO) concurs with this finding. FFATA Reporting Compliance: In February 2026, the DBH Grants Management Office created an FFATA procedure to ensure compliance with timely FFATA reporting. As a result of this finding, the procedure has been updated to report bi-weekly rather than monthly to ensure reporting under 30 days. The GMO Director will also provide continuous training to staff outside of the GMO to ensure staffing will not become a barrier, as experienced in early 2026. As of June 1, 2026, all FFATA entries as of the May 25th purchase order (R071) report have been reported. Additionally, as we plan for the forthcoming electronic grants management system (eGMS) we’re in discussion to add a report feature that will provide needed info for FFATA entry i.e., UEI, FAIN, award amount and purchase order # to automate the process. SEFA Reporting Compliance: Prior to the submission of the SEFA, the grant expenditures will be reviewed with the Accounting Officer, The AFO, and the Grants Program Manager for a detailed review of the SEFA to confirm expenditures are correctly categorized by fund and grants, reconciles to the DIFS R019 report and reflects the amount expended for sub-recipients. Effective FY26, subrecipient totals are uniquely identified with an account number that will reflect in the R019 report as a subset of total expenditures. This report will be used to complete the SEFA going forward.

The Office of the State Superintendent of Education (OSSE) concurs with the auditor’s finding and recommendations related to this finding. This oversight occurred during the transition to the new corrective action plan instituted during the prior fiscal year. OSSE is confident in its new review process of FFATA that will prevent the underlying reporting issue from recurring. OCFO concurs with the auditor’s finding. The original classification reflected OCFO’s judgment during report compilation rather than lack of control. Based on the initial analysis, the OCFO had not bifurcated the amount of the subrecipients’, School Food Authorities (SFAs) and Food Service Program Sponsors (SFSPs), expenditures in the SEFA under the Passed Through to Subrecipients column. CNC program operated as a reimbursement mechanism where School Food Authorities (SFAs) and Summer Food Services Program (SFSP) Sponsors received payments as Subrecipients. Subsequently reviewed, OCFO bifurcated the related expenditure in the SEFA, which resulted in updating the SEFA accordingly. OCFO remains committed to complying with its policies and procedures and will implement an additional layer of review to ensure the accuracy of the SEFA.

The Division is in the process of designing and implementing a precise control to ensure that the amount of food distributed is properly reviewed and that the Division maintains such evidence. Anticipated Completion Date: 9/30/2026 Responsible Contact Person: Michael Zielinski, Major, Divisional Commander.

A designated Finance staff member with knowledge of the Uniform Guidance requirements will be responsible for overseeing SEFA preparation for each fiscal year-end. A grant-by-grant SEFA reconciliation will be completed prior to yearend close, with particular attention to period-end cutoff. The SEFA will be independently reviewed by the Finance Director and compared to grant expenditure reports before the audit commences. Management will engage its external accountants earlier in the year-end close process.

Management's View and Corrective Action Plan Audit Finding for the Year Ended December 31, 2025 2025-001 – Schedule of Expenditures of Federal Awards Reporting Significant Deficiency - Community Development Block Grant Cluster Entitlement/Special Purpose Grants Response Management agrees that the Community Development Block Grant Cluster Entitlement/Special Grant was not identified in the system as federally funded at the time of grant set up in 2024. During the preparation of the prior year Schedule of Expenditures of Federal Awards (“Federal Schedule”), this award was omitted from the Federal Schedule since it was not identified as a federal grant within the grant listings. Management has implemented the following improvements: • Management will confirm federal grants with all government agencies the Association has received grants from each calendar year end • Retrain staff on identification of federal grants • Institute appropriate review procedures of the Federal Schedule Completion date: March 31, 2026 Responsible person contact name: Heather Livernois, Vice President, Finance/Chief Accounting Officer

SEFA Reporting Significant Deficiency - Ryan White HIV/AIDS Program Parts A and B Management’s Views and Opinion Sunset Park Health Council, Inc. acknowledges the finding and agrees that the Ending the HIV Epidemic: A Plan for America — Ryan White HIV/AIDS Program Parts A and B grant should have been identified and reported as a federal award on the Schedule of Expenditures of Federal Awards (“SEFA”) beginning with the applicable award period. Management notes that the omission resulted from the Assistance Listing Number (“ALN”) not being identified at the time of the initial grant setup, which impacted the subsequent classification of the award for SEFA reporting purposes. Once identified during the FY2025 audit process, management corrected the matter by including the cumulative federal expenditures under the award on the FY2025 SEFA. Management also notes that there were no questioned costs and that the omission did not impact the prior-year major program determinations. Sunset Park is committed to strengthening its grant setup, award identification, and SEFA review controls to ensure that all federal awards, including federal pass-through awards, are accurately identified, classified, and reported in accordance with Uniform Guidance. The corrective actions described below are intended to improve the completeness and accuracy of federal award reporting and to prevent similar omissions in future reporting periods. Corrective Action Plan: To mitigate this risk, the following controls and procedures will be implemented: 1. Quarterly Grant Review All active and new grants will be reviewed on a quarterly basis by the Director of Grants and Grant Accountants to ensure completeness and accuracy of key award data, including CFDA/ALN identification. Any discrepancies will be identified and corrected timely. 2. AAW (Award Authorization Workflow) Control All Award Authorization Work (AAW) forms submitted to NYU Research Data Management (RDM) will require review and initial approval by the Director of Grants prior to submission, confirming that all required fields, including CFDA/ALN, are complete. 3. RDM Submission Verification Each submission to RDM will require confirmation and acknowledgment that all award data has been properly entered and recorded for both new and existing grants. 4. Chartstring Verification Control As part of the chartstring distribution process, Grant Accountants will confirm that all relevant grant attributes, including CFDA/ALN numbers, have been accurately established and communicated to program teams. 5. SEFA and Interim Review Procedures During interim reviews and annual SEFA preparation, each Grant Accountant will verify that all assigned grants are properly classified as federal or non-federal and that all applicable CFDA/ALN numbers are included and accurately reported. Responsible Parties: • Director of Grants • Grant Accountants • NYU Research Data Management (RDM) Implementation Timeline: Full implementation of corrective actions by August 31, 2026 Training: Grants Fiscal staff will undergo CFDA/ALN identification and SEFA reporting training by August 31, 2026. Training will be recorded and incorporated into onboarding for new staff. Conclusion: These corrective actions strengthen internal controls over grant setup and reporting, ensuring accurate identification of federal funding sources and completeness of SEFA reporting in compliance with Uniform Guidance. Responsible Individual Leonardo Arias Email: Leonardo.Arias@nyulangone.org

March 31, 2026 To: Clausell & Associates, P.C. From: Javonna Latimore, Executive Director of Meals on Wheels of Middle Georgia, Inc. COMMENT#2025-001 CONTROLS OVER FINANCIAL STATEMENT PREPARATION SHOULD BE IMPROVED Views of Responsible Officials and Planned Corrective Actions: We concur with this finding. The Organization has contracted with a seasoned outside accounting professional to assure that the financial system is designed to properly report financial activity by funding source and statements are completed and prepared timely. In addition, the Organization has committed to upgrading our accounting system software along with appropriate amendments to the formal accounting policy and procedures manual to cover the proper internal controls for accurately reporting financial activities (expenses) for each grant and making sure that the allocation of expenses is supported by a methodology governed by generally accepted accounting principles. The Organization will maintain a backup copy of all financial data on-site. The accounting process and the software backup process will be completed by July 31, 2026. The Organization is also engaged to have training on common software applications and cybersecurity awareness. Date to be implemented: On-going and completed by July 31, 2026. Persons responsible: Javonna Latimore, CEO, and financial consultant COMMENT#2025-002 POLICIES AND PROCEDURES AND INTERNAL CONTROLS OVER DISBURSEMENTS SHOULD BE IMPROVED Views of Responsible Officials and Planned Corrective Actions: We concur with this finding. The Organization will immediately assign a committee to take the lead in establishing policies and procedures and internal controls over the procurement process. The Organization has engaged a third party to help establish values of in-kind contributions. Date to be implemented: On-going and completed by July 31, 2026. Persons responsible: Javonna Latimore, CEO (contact person) under the direction of the board of directors with the outside consultant. COMMENT#2025-003 INTERNAL CONTROLS OVER FINANCIAL STATEMENT PREPARATION AND COMPLIANCE WITH RELATED PROVISIONS OF GRANTS AND CONTRACTS SHOULD BE IMPROVED. Coronavirus State and Local Fiscal Recovery Funds, Aging Cluster, and Social Services Block Grant-Home Delivered Meals and Community Development Block Grant FALN 14.218, 21.027, 93.045, 93.053 and 93.667 GENERAL Views of Responsible Officials and Planned Corrective Actions: See Comment 2025-001 and 002. Date to be implemented: See Comment 2025-001 and 002. Persons responsible: See Comment 2025-001 and 002.

The Town of Spruce Pine will strengthen internal controls over the identification, tracking, and reporting of federal and state awards. Management will maintain a comprehensive, centralized listing of all known and potential federal and state awards throughout the fiscal year, including assistance listing numbers, award amounts, and pass‑through information. Grant expenditures and receivables will be reconciled to the general ledger on a monthly basis. Prior to submission to the auditors, the SEFSA be independently reviewed for completeness, accuracy, and compliance with federal and state requirements.

2025-001 – Completeness of certain programs on the prior years’ Schedules of Expenditures of Federal Awards (SEFA) Cluster: Not applicable Sponsoring Agency: Tennessee Emergency Management Agency Award Name: Presidential Disaster Declaration for Severe Storms, Straight-line Winds, and Flooding May 3-4, 2020; Presidential Disaster Declaration for COVID-19 beginning January 2020 Award Number: FEMA-4550-DR-TN; FEMA-4514-DR-TN Assistance Listing Title: Disaster Grants – Public Assistance (Presidentially Declared Disasters) Assistance Listing Number: 97.036 Award Year: 2022, 2024 Pass-through entity: Not applicable A reconciliation process was implemented by the Electric Power Board of the Metropolitan Government of Nashville and Davidson County (the “Board” or “NES”) in FY2025, the result of which was the discovery of the understatement referenced in the finding. FEMA expenses are now reconciled to, and obligation dates retrieved from, the Federal FEMA Grants Portal to ensure project expenses are accurately reported in the proper fiscal year. Further, NES leadership and staff have been trained on the new policies and procedures, with trainings occurring in October and November 2025. The Corporate Controller, Controls and Compliance Manager, and their respective teams will meet on a quarterly basis, beginning in December 2025, to discuss SEFA activities to ensure future SEFA reports are complete. For inquiries regarding this finding, please contact Tabitha Beach at tbeach@nespower.com who is responsible for the corrective action.

ECA agrees with this finding and has created a policy for identification and verification of funding sources for all contracts. This will ensure that all contracts are screened for federal funding regardless of what is listed in the contract/award/agreement. ECA will review its existing contracts to confirm all funding sources.

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.