Corrective Action Plans

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.

Management agrees with the finding and is in the process of revising internal controls to address SEFA preparation

Federal Agency: U.S. Department of Health and Human Services Assistance Listing No.: 93.918, Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease (Ryan White, Part C) Condition: Ryan White, Part C requires the use of program income under the additive method, which requires program income earned from a federally funded program is added to the federal award amount and used to further program objectives. Under the method, allowable expenditures of program income are included on the SEFA. UPMC’s SEFA did not include expenditures related to program income, which were allowable. As a result, the expenditures in the SEFA for the Ryan White, Part C were understated which resulted in the improper identification of major federal programs and, therefore, required the restatement of the previously issued Uniform Guidance report to include Ryan White, Part C as a major federal program. Corrective action plan: Corrective Action Plan: UPMC has remediated the control deficiency for the period ending December 31, 2025, by restating the 2024 Uniform Guidance report and including expenditures of program income in the SEFA for years ending on and after December 31, 2024. Completion: September 2026

2024-002: For the year ended December 31, 2024, $4,485,028 of FEMA expenditures were omitted from the 2024 Schedule. Name of Contact Person: Daria Heimerman, Director of Financial Reporting, dtheimerman@evergreenhealthcare.org Corrective Action Planned: Management has enhanced the process for preparing the Schedule of Expenditures of Federal Awards (SEFA) to improve the completeness and accuracy offederal award reporting. The process includes reconciliation of federal expenditures reported in the SEFA to the District's underlying accounting records and supporting grant information. Management will also perform a documented secondary review of the SEFA prior to issuance to verify the completeness and accuracy of federal awards and expenditures reported. Differences identified through the reconciliation and review process will be investigated and resolved prior to finalization of the SEFA These procedures will be incorporated into the District's annual financial reporting process and applied to all applicable federal awards. Anticipated Completion Date: August 2026 Statement of Concurrence or Nonconcurrence: Management concurs with audit finding 2024-002.

Management has strengthened controls over SEFA preparation by implementing procedures to identify federal awards with unique reporting requirements, including FEMA grants. A formal review process and year-end reconciliation of federal expenditures to the SEFA will be performed to ensure expenditures are reported completely and accurately in accordance with Uniform Guidance requirements.

The School District will review the Uniform Guidance requirements and ensure all expenditures are accurately reported on the School District’s Schedule of Expenditures of Federal Awards.

Finding Number 2024-020 Subject Heading (Financial) or AL no. and program name (Federal) EMERGENCY RENTAL ASSISTANCE PROGRAM (ERA) AL #21.019 Planned Corrective Action Oklahoma Office of Management and Enterprise Services (OMES) acknowledges they did not implement the proper internal controls and oversight of the ERA Program during FY2024. However, OMES has taken steps to correct these findings and has followed the recommendations set forth by SAI as evidenced in the Recommendation section of this finding. Beginning with FY2025, OMES has taken the following measures:  Oversight and management of the ERA program has been transferred to the OMES Grant Management Office (OMES-GMO) which has staff with several years of grant experience. OMES-GMO has recently hired additional staff, and the two staff members dedicated to the management of the ERA program have 20+ years of combined federal grant specific experience.  OMES ensured that the subrecipient agreement included all the required terms under the ERA Program and that the agreement does not expire, OMES-GMO and the Communities of Foundation of Oklahoma (CFO) executed an updated Subrecipient Grant Agreement Amendment that details the responsibilities of OMES to monitor CFO and the duties and processes that CFO must follow in regard to ERA Program, including detailed cash management policies.  OMES-GMO required the return of the remaining ERA2 Program funds from CFO to ensure proper oversight and review of ERA expenditures is performed.  OMES-GMO has in place a multi-level system of internal controls for grant management and oversight that includes routine monitoring, desk review, and site visits for all projects and associated project/administrative expenditures to ensure allowability, accuracy, and assist in the detection of fraud. For example, OMES-GMO’s process for disbursing funds to a subrecipient requires a written request from the subrecipient with supporting documentation, then OMES-GMO assigns a staff lead and secondary grant analyst to perform a primary and secondary review for compliance and to require additional supporting documentation if needed to approve the request. Once those reviews are completed and approved by the OMES-GMO staff, the Director of the OMES-GMO must approve the request before it is sent to the OMES Finance Division, who will then verify the calculated amount(s) before completing the disbursement to the subrecipient. These internal controls and policies have been implemented for the management and oversight of the ERA Program and provide a multilayer review that will prevent fraud and risk factors applicable to the ERA program. Additionally, the OMES-GMO staff assigned to the ERA program have the training and knowledge to ensure compliance with the Federal grant requirements. Depending on the level of risk, OMES-GMO conducts monthly, bi-weekly or weekly meetings with each subrecipient to monitor the progress of projects and address any issues or changes that might impact the project. For the ERA Program, OMES-GMO conducted bi-weekly monitoring meetings with CFO and reviewed documentation provided by CFO to ensure all ERA projects were eligible under the ERA guidelines and that CFO exercised the proper oversight over their subrecipients and spending. Anticipated Completion Date Completed Responsible Contact Person Brandy Manek

Finding Number 2024-094 Subject Heading (Financial) or AL no. and program name (Federal) 97.036 – Disaster Grants – Public Assistance Planned Corrective Action To address this finding, OEM will strengthen its review procedures for the SEFA by implementing a documented review process to verify the accuracy and completeness of information provided by ABS. OEM will coordinate with ABS to obtain and retain sufficient supporting documentation for amounts reported on the SEFA and will work with ABS to resolve any discrepancies identified during the review process. In addition, OEM will ensure staff responsible for reviewing the SEFA receive additional guidance and training on SEFA reporting requirements. These actions are intended to improve the accuracy and reliability of future SEFA reporting and strengthen compliance with applicable federal requirements. Anticipated Completion Date SFY26 Reporting Period Responsible Contact Person Brianna Thomas

Finding Number 2024-039 Subject Heading (Financial) or AL no. and program name (Federal) ALN: 21.027 Federal Program name: Coronavirus State And Local Fiscal Recovery Funds (CSLFRF) Planned Corrective Action Office of Management Enterprise Services – Grants Management Office Response: The Oklahoma Office of Management and Enterprise Services – Grants Management Office (OMES-GMO), in coordination with the OMES Financial Reporting Unit (FRU), agrees that strengthened controls and enhanced processes are necessary to ensure the accurate preparation and reporting of expenditures on the Schedule of Expenditures of Federal Awards (SEFA). However, because the SFY 2023 Single Audit was not issued until August 2025, the recommendations from that audit could not be fully implemented prior to the completion of the SFY 2024 SEFA reporting process. OMES FRU worked with the agencies identified by the State Auditor's Office to review and, where appropriate, amend their FY2024 GAAP Package Z submissions. Any necessary revisions to the FY2024 SEFA have been made to ensure federal expenditures are reported accurately and in accordance with applicable federal requirements. OMES FRU reviewed agency-specific exceptions identified during the audit to validate reported expenditures and supporting documentation. In FY2025, OMES FRU implemented additional internal controls designed to improve the completeness and accuracy of SEFA reporting. These enhancements include revisions to the GAAP Package Z template that require agencies to reconcile reported federal expenditures and cash balances to the Summary of Receipts and Disbursements (SRD) reports. OMES FRU reviews these reconciliations against PeopleSoft financial data to identify discrepancies before the statewide SEFA is finalized. Additionally, OMES FRU has established annual SEFA reporting training for agency personnel responsible for federal financial reporting. The training addresses SEFA reporting requirements, completion of the GAAP Package Z, reconciliation procedures, and documentation expectations to promote consistent application of federal reporting requirements across all state agencies. Collectively, these enhancements strengthen statewide internal controls over SEFA preparation and reduce the risk of reporting errors in future fiscal years. Agency 055 – Oklahoma Arts Council The agency submitted a corrected FY2024 SEFA to the State Auditor's Office on February 17, 2026. Agency 060 – Oklahoma Department of Aerospace and Aeronautics The Department of Aerospace and Aeronautics submitted a corrected FY2024 SEFA to the State Auditor's Office on February 10, 2026, correcting the CSLFRF reporting identified during the audit. Agency 452 – Oklahoma Department of Mental Health and Substance Abuse Services (ODMHSAS) ODMHSAS concurs with the finding related to its FY2024 SEFA reporting for ALN 21.027. The agency determined the variance resulted, in part, from expenditures that were not assigned the appropriate Assistance Listing Number (ALN) and therefore were omitted from the original SEFA. ODMHSAS corrected the reporting and submitted updated information reflecting the proper CSLFRF expenditures. The agency will continue coordinating with OMES-GMO to ensure that future CSLFRF expenditures are properly identified, reconciled, and reported. Agency 585 – Oklahoma Department of Public Safety The Department of Public Safety concurs with the finding. The agency indicated that personnel turnover during the implementation of the award contributed to the issue and that staff were not aware the project should be administered as a federal grant. As a result, the Assistance Listing Number (ALN) was not established in PeopleSoft, and expenditures were not tracked using normal federal grant procedures. Additionally, CSLFRF reimbursements were received through transfers reflected on the Summary of Receipts and Disbursements rather than traditional federal reimbursement processes, making identification more difficult. DPS has acknowledged the reporting deficiencies and stated that corrections will also be made to its FY2025 SEFA. Agency 670 – J.D. McCarty Center J.D. McCarty Center determined the variance resulted from two expenditures that were not captured on the Summary of Receipts and Disbursements report used during SEFA preparation. The agency concluded the discrepancy could have been identified through a manual reconciliation of expenditures to the SRD report. An updated FY2024 SEFA was subsequently submitted to correct the reporting. Agency 800 – Oklahoma Department of Career and Technology Education CareerTech explained the variance resulted from a data entry error on a revised SEFA requested by the State Auditor's Office. While transferring data from the agency's reconciliation worksheet to the GAAP Package Z form, an extra parenthesis was inadvertently retained, creating a double-negative and overstating the adjustment. After the error was identified by the auditors, CareerTech corrected the report and submitted a revised SEFA. Agency 830 – Oklahoma Department of Human Services DHS concurs with the finding and determined that ARPA expenditures were omitted from the agency's payable calculation used in preparing the SEFA. Going forward, DHS will ensure all ARPA and other federal grant expenditures are included in its payable calculations. The Budget Director will review and approve the payables submitted for SEFA reporting, and CARE staff will notify Budget whenever a grant reflects no reported payables to ensure expenditures have not been omitted. Agency 835 – Oklahoma Water Resources Board The Oklahoma Water Resources Board acknowledges that certain cash transfers were incorrectly reported as federal expenditures on the FY2024 SEFA and that some expenditures were recognized in the incorrect fiscal year due to timing and cutoff issues. The agency noted that the underlying GAAP financial statements accurately reflect the PeopleSoft general ledger and that the issue relates solely to federal SEFA presentation. Management evaluated whether prior-year accounting records could be adjusted to better distinguish transfers from expenditures; however, OMES determined prior fiscal years would not be restated. The agency will work with OMES to ensure future SEFA reporting appropriately distinguishes cash transfers from federal expenditures and recognizes expenditures in the proper reporting period. Anticipated Completion Date Completed Responsible Contact Person OMES: Elizabeth Base 055: April Kowardy 060: Chris Wadsworth 452: Chad Carden 585: Brittany Stroud 670: Erik Paulson & Darrell Green 800: Lisa Batchelder 830: Lindsey Kanaly 835: Jerri Hargis

Finding 2024-002: Preparation of the Schedule of Expenditures of Federal Awards, Material weakness/other matter noncompliance: Corrective Actions Taken or Planned: Management will review its year-end processes and its grant-related internal controls with a specific focus on accrual-basis auditing requirements to ensure that such errors do not occur in the future. Anticipated completion date is June 30, 2025, by the Business Office, Anthony Corsi, Business Manager and Chief of School Business Official

To address the finding, the Authority has implemented corrective actions that include establishing a formal year-end SEFA preparation and review process involving Accounting and Grant Program Mangers; reconciling federal expenditures reported on the SEFA to the general ledger and year end accruals, reviewing active federal awards at fiscal year-end to identify eligible expenditures that may not have been reported; Revising the Grants Management Procedures Manual to formalize year-end cutoff, review, reconciliation, and approval procedures prior to SEFA issuance. These procedures will be incorporated into the FY26 year-end close and reporting process.

Reporting – Incomplete Schedule of Expenditures of Federal Awards Recommendation: Management should implement procedures to ensure all grant agreements, loan agreements, pass-through award notices, and related amendments are reviewed by the finance department to determine whether they include federal funds. Management should also require communication between project management and finance personnel, perform a year-end reconciliation of loan draws and outstanding balances to the SEFA, and document review of the SEFA and related notes before issuance. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to the finding: The Authority will strengthen controls over identifying and reporting federal funds. All grant and loan agreements, including amendments, will be reviewed to determine federal funding applicability. As part of this process, a Federal Funding Review Checklist will be developed and required for each agreement. Name(s) of the contact person(s) responsible for corrective action: Lowel Kruger, Executive Director. Planned completion date for corrective action plan: December 31, 2024

To address the finding, the Authority has implemented corrective actions that include establishing a formal year-end SEFA preparation and review process involving Accounting and Grant Program Mangers; reconciling federal expenditures reported on the SEFA to the general ledger and year end accruals, reviewing active federal awards at fiscal year-end to identify eligible expenditures that may not have been reported; Revising the Grants Management Procedures Manual to formalize year-end cutoff, review, reconciliation, and approval procedures prior to SEFA issuance. These procedures will be incorporated into the FY26 year-end close and reporting process.

Views of Responsible Officials and Planned Corrective Actions: The Finance Department will ensure an accurate SEFA in conjunction with the response for Finding 2024-002.

Organization Response: Management acknowledges the auditors’ comments, with the clarification below, and has taken the actions listed below. The overstatement noted in this finding was a misstatement. The omission noted in this finding references funds received from state and county agencies. Therefore, the funds were recorded consistent with the information and documentation provided by the pass-through entity (Cascade County) which did not clearly identify the original funding source as the federal entity. To ensure internal controls over funding sources and expense reporting, the grant award and processing policy has been reviewed and updated to include due diligence of original funding sources.

Finding No. 2024-001 Implement System-Based Tracking of Federal Expenditures Finding: During our review of the SEFA, we noted that CAIR-CA utilizes workbooks outside of its accounting software to track federal expenditures. The workbooks do not reconcile directly with the general ledger (GL), so management performs a separate reconciliation to support the SEFA amounts. This approach was similarly observed in the prior year's audit. Views of Responsible Officials and Corrective Action Plan: Management concurs with the finding and has already updated the accounting system to incorporate grant-specific tracking codes to further align with federal reporting standards. Because the organization’s first single audit in FY2023 was conducted concurrently with the FY2024 single audit, there was limited opportunity for these procedural improvements to be reflected in the FY2024 single audit testing cycle. As a result, the impact of these changes will be more fully reflected in the FY2025 single audit, which is scheduled to commence this year. As part of a layered approach to internal controls, excel worksheets will continue to be used as a supplementary monitoring tool, providing an additional cross-check to the system-generated reports. Responsible person: Jackie Ramirez, Operations & Finance Associate Director Implementation date: November 20, 2025