Corrective Action Plans

The Agency updated procedures for developing the SEFA in accordance with 2 CFR 200.502 which states, “The determination of when a federal award is expended must be based on when the activity related to the Federal award occurs.”The Agency is required to comply with 2 CFR 200.403 which indicates that allowable costs must be determined in accordance with accounting principles generally accepted in the United States of America (GAAP). The Agency updated procedures for developing the SEFA in accordance with both 2 CFR 200.502 and 2 CFR 200.403 to include the following process improvement: The agency has modified its current process to ensure the direct and indirect costs charged to the federal programs include only the costs incurred during the current fiscal year.

The Agency updated procedures for developing the SEFA in accordance with 2 C.F.R. 200.510 (b) to include the following process improvements: The agency has modified its current process in determining the value of federal awards expended for the various federal loans in Federal, which will include all Federal loans within their affordability period in the compliance period. The compliance period requirements under the guidance §200.502 (b) are any new loans made or received during the audit period that are still within their affordability period. Add an additional process step regarding the requirements for the SEFA to be presented accurately when an expenditure is reclassified to another general ledger account across all programs to ensure the SEFA presentation accounts for the correct expenditures during the audit period. The agency has modified its current process to ensure the direct and indirect costs charged to the federal programs include only the costs incurred during the current fiscal year.

Condition: The schedule of expenditures of federal awards (SEFA) contained inaccuracies and incomplete information that was identified during the audit. Planned Corrective Action: The School District will develop a SEFA checklist to help ensure all federal expenditures are properly reported. Additional processes will be put in place by management to review the SEFA in advance of the annual audit to effectively meet audit report timelines and help ensure completeness, validity, and accuracy of the final SEFA reporting. Contact person responsible for corrective action: Patricia Carion/Piper Bognar Anticipated Completion Date: 07/31/2025

Finding 2024-004 U.S. Department of Treasury Federal Award Year Ending June 30, 2024 COVID-19: Coronavirus State and Local Fiscal Recovery Funds Lack of internal controls over the preparation of the Schedule of Expenditures for Federal Awards Finding: The Schedule of Expenditures for Federal Awards for the year ended June 30, 2024, was initially overstated by $529,900 due to an improper subrecipient verses beneficiary determination for the COVID-19 coronavirus state and local fiscal recovery funds. Corrective Actions Taken or Planned: When reviewing revised grants, particularly pass-through grants, look for any new language in the updated review that could affect the classification of the grant as a federal award and update any relevant schedules accordingly. Look into other alternatives for additional reviews on grants. Contact person responsible for corrective action: Heather Brouse, CFO, and Melissa King, Accountant

A review and training of the award set up process is being conducted to ensure all team members in Office of Sponsored Programs (OSP) follow the correct procedures for moving an advance fund number into a fully executed award. Implementation of a new electronic research administration system, Novelution, is currently underway. Internal controls will be incorporated into this system to track advance awards and their conversion into fully executed awards. This control will improve tracking and communication via systems to avoid the duplication of fund numbers for the same award. On a quarterly basis, Research Accounting Services (RAS) will send reports of advance funds to OSP to follow up on the status. RAS is also incorporating additional reviews during the SEFA preparation process. They will review advance funds to check with OSP to see if the fully executed agreements have been received from the sponsor and if any updates are needed. Novelution will also be a more robust system that will provide full grants management for agreements in order to provide more transparency across central units that will minimize these types of errors from occurring in the future. This is expected to be completed prior to the close of FY2025.

RECOMMENDATION: Marshall Jones recommends that the School establish a process to track the expenditures of federal awards during the year, including awards for which purchases are made on the School’s behalf by the passthrough grantor. This will better enable the School to timely prepare a complete and accurate SEFA. RESPONSE: DeKalb Preparatory Academy intends to hire a Chief Financial Officer (CFO) to oversee financial operations. The CFO will be responsible for ensuring accurate tracking and management of all revenues and expenditures, including those from state, local, and federal sources.

CDCU’s CFO, Sarah Beaumont, will implement federal grant and loan management policies and procedures and provide training to staff responsible for completing the Schedule of Expenditure of Federal Awards (SEFA) to ensure all federal grants and loans are included in the SEFA (pursuant to Section 200.502(b) of 2 CFR Part 200). The CFO, Sarah Beaumont, will draft the federal grant and loan management policy and procedures which will be reviewed and approved by the Board of Directors. CDCU’s Finance Manager, Traci Norton, will create and maintain a repository (electronic file) of relevant federal grant and loan information that contains key information relating to each federal program to assist in preparing the SEFA (pursuant to Section 200.502(b) of 2 CFR Part 200). The Finance Manager, Traci Norton, will update federal grant and loan information in the electronic repository. Repository will be reviewed quarterly by the CFO, Sarah Beaumont, and reviewed and approved by the CEO, Todd Reeder.

CDCU’s CFO, Sarah Beaumont, will implement federal grant and loan management policies and procedures and provide training to staff responsible for completing the Schedule of Expenditure of Federal Awards (SEFA) to ensure all federal grants and loans are included in the SEFA (pursuant to Section 200.502(b) of 2 CFR Part 200). The CFO, Sarah Beaumont, will draft the federal grant and loan management policy and procedures which will be reviewed and approved by the Board of Directors. CDCU’s Finance Manager, Traci Norton, will create and maintain a repository (electronic file) of relevant federal grant and loan information that contains key information relating to each federal program to assist in preparing the SEFA (pursuant to Section 200.502(b) of 2 CFR Part 200). The Finance Manager, Traci Norton, will update federal grant and loan information in the electronic repository. Repository will be reviewed quarterly by the CFO, Sarah Beaumont, and reviewed and approved by the CEO, Todd Reeder.

Response: Management agrees with the finding and will reevaluate internal processes and procedures. This error highlights the need for better oversight and timely communication between our organization and its subrecipients to ensure accurate reporting. The root cause of this issue was insufficient monitoring and communication between the subrecipient and our grants management team. To address this, we are implementing several corrective actions. These include establishing a stricter communication schedule with subrecipients to ensure timely submission of invoices and expense reports and strengthening our internal monitoring procedures by tracking submission deadlines more closely. Additionally, we will improve guidance and capacity-building efforts for subrecipients to ensure they understand reporting requirements, and we will conduct quarterly reviews of subrecipient expenses to proactively identify and mitigate reporting delays. Contact person responsible for corrective action: Lynne Duong, Post Award & Compliance Manager Anticipated completion date: December 31, 2024

Carl Biber Chief Financial Officer 317 Western Boulevard Jacksonville, North Carolina 28546 Anticipated Completion Date: June 30, 2025 Annually, the Authority will perform additional verifications of the completeness of the Schedule of Expenditures of Federal awards by confirming directly with the mortgagee the balance as of year-end and activity for the year then ended.

2CFR 200.510(b) requires organizations to prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements, which must include the total of federal awards as determined in accordance with 2 CFR 200.502. The original SEFA prepared by the School District was not complete and accurate. The School District will implement a procedure to ensure that accounting records are closed timely, internal accounts are reconciled, and appropriate workpapers are prepared to support SEFA balances. The School District will implement these procedures for the 2025 fiscal year end.

Corrective Action Plan: Management agrees with the Auditor’s recommendations. The City has discussed this finding with our former auditors. Accounting staff and City grant personnel will work with third parties working with grants for the City to more frequently receive information and update the City's records accordingly. Person(s) Responsible (Name, title): Donald Harris, City Treasurer and Shelly Munks, City Clerk Timing for Implementation: Ongoing

Finding Reference Number: 2023-003 Description of Finding: The Schedule of Expenditures of Federal Awards (SEFA) was not reconciled and complete prior to the beginning of the audit. Statement of Concurrence or Nonconcurrence: The identified issue pertaining to the incomplete SEFA is accurate and clearly defined. Corrective Action: • The Authority has since contracted with a consultant to assist staff with project and budget management of the same project the grant was funding. • Reporting requirements will be completed by the consultant or finance department going forward rather than the engineering manager. • Monthly meetings are held with staff from both accounting, engineering, and the grantor to discuss grant expenditures, invoice submittals and reimbursements, and project updates. • Director of Finance has looked into grant management certification courses in order to further educate staff on grant tracking and reporting requirements.

2023-009- Reporting Federal Agency: U.S. Department of the Treasury Federal Program Name: American Rescue Plan Act / Coronavirus State Fiscal Recovery Fund (ARPA) Assistance Listing Number: 23.027 Federal Award Identification Number and Year: Various Pass-Through Agency: Pennsylvania Department of Health and Human Services Pass-Through Number(s): Not Available Award Period: 1/1/2023 – 12/31/23 Type of Finding: Significant Deficiency in Internal Control Over Compliance Condition: Policies and controls in place regarding the completeness of the SEFA were not properly functioning. Within the supporting listing of expenses relating to ARPA expenditures, multiple transactions were identified as 2022 fiscal year expenditures that were included in the 2023 expenditure total. The County revised the 2023 SEFA to exclude the 2022 expenditures. Recommendation: We recommend management should review the process of recording federal expenditures to determine expenditures are being included in the appropriate fiscal year. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned and taken in response to finding: The reason for the finding’s recurrence is in part a result of the timing of when the finding was issued. For example, the 2022 Single Audit was issued in August 2024. At this point, the 2023 fiscal year was already complete. Additionally, the implementation of corrective actions are in progress, including providing training, oversight and guidance to departments administering the grants, but these efforts take time to complete and/or are ongoing. A Deputy Controller of Grant Accounting was hired in February 2023, and a Manager-Grant Accounting was hired in July 2024, after working in this capacity as a temporary staff member since mid-2023. The County approved an additional full-time grant accounting position in May 2025 and will begin recruiting for this position in June 2025. These positions are responsible for establishing accounting policies based on best practices for grant-related activities, developing and providing training and resources to grant- funded departments, reviewing grant-related accounting in the Infor system, preparation of the annual SEFA, and assisting in the facilitation and preparation of documents needed for the Single Audit. The work performed by these positions had been vacant since the departure of Internal Audit Staff who helped General Accounting prior to the 2021 audit as well as the SEFA. Several changes have been made since the grant accounting team was created including the following: The grant accounting team is developing streamlined and standardized SEFA templates for each department for SEFA preparation. The expenditures reported on each SEFA are being compared to the financial information in the GL where possible to ensure all appropriate expenditures are included. Additionally, we are incorporating tracking of lifetime grant expenditures into the SEFA process to ensure no expenditures are missed due to cut off or timing issues. In 2023, the grant accounting team created a Montgomery County Grant Repository. This repository is used to store all grant agreements awarded to the County. Departments submit grant information to the repository upon notification of grant award. The grant accounting team reviews the Grant Repository when preparing the SEFA to ensure no grant programs are inadvertently left off of the SEFA. Additionally, the availability of the Grant Repository enables members of the accounting, finance and grant departments to quickly access grant award information when needed for audits, reporting, or other requirements. The grant accounting team is continuing to review and update the County’s Grant Accounting policies and is working closely with departments to understand their utilization of Infor to account for grant- related activities. As these policies are formalized, we will continue to provide training and resources; in late 2023, the County hired an outside trainer to provide an in-depth training on the accrual method of accounting, grant accruals, and the treatment of grant revenue. The Grant Accountant provided training in April 2024 to explain and outline the SEFA and Single Audit processes. Grant-funded departments received a two-day training on utilization of the Grant Management components of Infor in February 2024. We are also providing guidance and education to departments on the differences in timing of various grant fiscal years and how these impact the financial audit, SEFA and Single Audit. For example, departments must understand how to report expenditures and receipts in the correct period regardless of the fiscal year associated to the contract (State: July-June; Federal: October-September; County: January-December) and understand how these amounts reconcile to the amounts reported to the funding agencies. The accounting department continues to work with departments to emphasize the importance of submitting financial documentation timely and reviewing what is in the General Ledger promptly at the end of each month. The Finance department is performing quarterly reviews with departments to go over financial status, including grant financials. Departments are continuing to utilize Project Codes and other components of Infor’s Grant Management System to ensure the proper accounting of grant-related expenses, receipts, and revenues in the GL. Name(s) of the contact person(s) responsible for corrective action: Thomas Landauer and Fonta Reilly Planned completion date for corrective action plan: September 2025

2023-008 – Reporting Federal Agency: U.S. Department of the Treasury Federal Program Name: Emergency Rental Assistance Program (ERAP) Assistance Listing Number: 23.023 Federal Award Identification Number and Year: Various Pass-Through Agency: Pennsylvania Department of Health and Human Services Pass-Through Number(s): Not Available Award Period: 1/1/2023 – 12/31/23 Type of Finding: Significant Deficiency in Internal Control Over Compliance Condition: Policies and controls in place regarding the completeness of the SEFA were not properly functioning. Within the supporting listing of expenses relating to ERAP expenditures, six transactions were identified as prior fiscal-year expenditures that were included in the unadjusted 2023 expenditure total. The County revised the 2023 SEFA to exclude the 2022 expenditures. Recommendation: We recommend management should review the process of recording federal expenditures to determine expenditures are being included in the appropriate fiscal year. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned and taken in response to finding: The reason for the finding’s recurrence is in part a result of the timing of when the finding was issued. For example, the 2022 Single Audit was issued in August 2024. At this point, the 2023 fiscal year was already complete. Additionally, the implementation of corrective actions are in progress, including providing training, oversight and guidance to departments administering the grants, but these efforts take time to complete and/or are ongoing. A Deputy Controller of Grant Accounting was hired in February 2023, and a Manager-Grant Accounting was hired in July 2024, after working in this capacity as a temporary staff member since mid-2023. The County approved an additional full-time grant accounting position in May 2025 and will begin recruiting for this position in June 2025. These positions are responsible for establishing accounting policies based on best practices for grant-related activities, developing and providing training and resources to grant- funded departments, reviewing grant-related accounting in the Infor system, preparation of the annual SEFA, and assisting in the facilitation and preparation of documents needed for the Single Audit. The work performed by these positions had been vacant since the departure of Internal Audit Staff who helped General Accounting prior to the 2021 audit as well as the SEFA. Several changes have been made since the grant accounting team was created including the following: The grant accounting team is developing streamlined and standardized SEFA templates for each department for SEFA preparation. The expenditures reported on each SEFA are being compared to the financial information in the GL where possible to ensure all appropriate expenditures are included. Additionally, we are incorporating tracking of lifetime grant expenditures into the SEFA process to ensure no expenditures are missed due to cut off or timing issues. In 2023, the grant accounting team created a Montgomery County Grant Repository. This repository is used to store all grant agreements awarded to the County. Departments submit grant information to the repository upon notification of grant award. The grant accounting team reviews the Grant Repository when preparing the SEFA to ensure no grant programs are inadvertently left off of the SEFA. Additionally, the availability of the Grant Repository enables members of the accounting, finance and grant departments to quickly access grant award information when needed for audits, reporting, or other requirements. The grant accounting team is continuing to review and update the County’s Grant Accounting policies and is working closely with departments to understand their utilization of Infor to account for grant- related activities. As these policies are formalized, we will continue to provide training and resources; in late 2023, the County hired an outside trainer to provide an in-depth training on the accrual method of accounting, grant accruals, and the treatment of grant revenue. The Grant Accountant provided training in April 2024 to explain and outline the SEFA and Single Audit processes. Grant-funded departments received a two-day training on utilization of the Grant Management components of Infor in February 2024. We are also providing guidance and education to departments on the differences in timing of various grant fiscal years and how these impact the financial audit, SEFA and Single Audit. For example, departments must understand how to report expenditures and receipts in the correct period regardless of the fiscal year associated to the contract (State: July-June; Federal: October-September; County: January-December) and understand how these amounts reconcile to the amounts reported to the funding agencies. The accounting department continues to work with departments to emphasize the importance of submitting financial documentation timely and reviewing what is in the General Ledger promptly at the end of each month. The Finance department is performing quarterly reviews with departments to go over financial status, including grant financials. Departments are continuing to utilize Project Codes and other components of Infor’s Grant Management System to ensure the proper accounting of grant-related expenses, receipts, and revenues in the GL. Name(s) of the contact person(s) responsible for corrective action: Thomas Landauer and Fonta Reilly Planned completion date for corrective action plan: September 2025

To: FY2023 Uniform Guidance Reporting Package From: David Noble, Director, Grant Administration RE: 2023 Uniform Guidance Audit Corrective Action Plan Date: September 25, 2025 Finding 2023-003 Federal Agency: U.S. Department of Treasury U.S. Department of Homeland Security ALN: 21.027 / 97.036 Grady Memorial Hospital Corporation’s CFO and VP of Fiscal Services/Controller have reviewed the reporting from KPMG relating to the Uniform Guidance. We understand the recommendation set forth by KPMG and will update our controls and processes to include additional review of expenses incurred during the relevant audit period. Grady’s corrective action plan: We have restated 2023 SEFA totals based on updates to the project funded within ALN 21.027 and for the project funded within 97.036. Going forward the SEFA will be reviewed to ensure that all related expenses for the audit period are incorporated. Contact person/s responsible for the corrective action: David Noble, Director, Grant Administration Anticipated Completion Date: Consistent with 2024 Financial Audit Reporting

To: FY2023 Uniform Guidance Reporting Package From: David Noble, Director, Grant Administration RE: 2023 Uniform Guidance Audit Corrective Action Plan Date: September 25, 2025 Finding 2023-002 (REVISED) Federal Program: Medicaid Assistance Program HIV Emergency Relief Project Grants ALN: 93.778 / 93.914 Grady Memorial Hospital Corporation’s CFO and VP of Fiscal Services/Controller have reviewed the reporting from KPMG relating to the Uniform Guidance. We understand the recommendation set forth by KPMG and will update our controls and processes to include additional review of expenses incurred during the relevant audit period. Grady’s corrective action plan: Going forward the SEFA will be reviewed to ensure that all related expenses for the audit period are incorporated. Contact person/s responsible for the corrective action: David Noble, Director, Grant Administration Anticipated Completion Date: Consistent with 2024 Financial Audit Reportin

The grant accounting and SEFA preparation process will be refined, improved and documented. Internal resources will be reallocated to ensure sufficient coverage of these processes, and the primary accountability and oversight will shift to System Accounting. Management will ensure that in preparation of the SEFA, (1) a team member will assemble the initial reconciliation, (2) management will review the initial reconciliation and review the consolidation from all BayCare entities to the combined SEFA, (3) A final review will be conducted by the Director of Accounting. Sign-off from each preparer/reviewer shall be required. Meetings will be conducted as needed with departments outside of Hospital Finance to ensure completeness and accuracy of data. Start September 2025, Finalized Q1 2026

Condition: Controls in place were not adequate to ensure the schedule of federal expenditures was complete and accurate. Planned Corrective Action: Management fully understands the importance of internal controls to ensure the schedule of federal expenditures is complete and accurate. The Grants Department will amend its current written processes regarding award establishment to include requiring documentation indicating an award is federal funds prior to establishing the project in Infor CloudSuite Financials & Supply Management (Accounting software). Additionally, the Grants Department will routinely audit the database the department utilizes to record awards to ensure the field to note federal awards is properly updated. Furthermore, the SEFA will be reviewed with documented sign-off by each member of the Grants Team prior to submission. Contact person responsible for corrective action: Stephanie Cihon Anticipated Completion Date: October 31, 2025

Finding Number 2023-056 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 Management Response The Oklahoma Office of Management and Enterprise Services – Grants Management Office (OMES-GMO), in coordination with the OMES Financial Reporting Unit (FRU), agrees with the finding. OMES agrees with the finding and concurs that the implementation of additional controls, along with clarity on process, is necessary to ensure accurate preparation and reporting of expenditures on the Schedule of Expenditures of Federal Awards (SEFA). OMES recognizes the importance of compliance with 2 CFR § 200.303, § 200.502(a), and § 200.510(b), which require entities to maintain effective internal controls and to accurately report federal expenditures based on when the underlying activities occur. Accurate SEFA reporting ensures transparency and accountability in the use of federal funds, including Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) under Assistance Listing #21.027. Actions Taken and Planned Improvements: • FY2024 Review and Remediation: OMES FRU is actively working with the agencies identified in this finding to review and, if necessary, amend their FY2024 GAAP Package Z submissions. Necessary updates to FY2024 SEFA will be made to reflect accurate expenditure reporting in line with federal requirements. OMES FRU will review specific instances with its partner agencies identified in the findings to substantiate or refute agency assertions concerning provided assistance and approvals received. •GAAP Package Z Template Enhancements (Effective FY2025): OMES FRU will revise the GAAP Package Z template to include a new reconciliation tab. This tab will require agencies to reconcile reported federal expenditures and cash balances to SRD (Summary of Receipts and Disbursements) reports. OMES FRU will review this reconciliation against data from PeopleSoft to verify accuracy. •Annual SEFA Training: Beginning in FY2025, OMES FRU will provide annual training to all agencies involved in federal reporting. The training will focus on SEFA requirements, GAAP Package Z completion, and reconciliation procedures. This timing aligns with agency preparation for the FY2025 GAAP Package submissions. Noteworthy Corrections: Agencies 340, 423, 677, 800, and 585 made SEFA corrections at the request of the State Auditor’s Office prior to the issuance of this finding. These amendments were submitted and processed in a timely manner and reflect the agencies' commitment to compliance. Agency-Specific Responses Individual responses have been submitted by several agencies listed in the finding, outlining corrective actions, reconciliations, and improvements made to internal controls. These responses are available upon request and have been reviewed by OMES FRU for accuracy and completeness. In addition, several agencies have submitted their own independent responses, which document internal improvements and provide additional context to their individual reporting discrepancies. The following agencies provided the following independent responses: 619: The 2023 SEFA was completed and submitted by OMES without the aid or approval of agency 619 and the ARPA Grant Manager. Agency 619 worked very closely with OMES on the 2024 SEFA to ensure that our internal records matched what is listed in PeopleSoft. Some edits had to be made but the SEFA was submitted with all parties in agreement. Agency 619 will continue to work closely with OMES in future reporting periods to ensure the most accurate expense totals are reported. 670: Agency 670 has taken corrective action by reviewing internal processes with assigned staff to ensure required forms are comprehensively reviewed for errors, omissions, and exceptions prior to filing with OMES CAR. agency 670 is willing and able to complete an updated OMES CAR form with accurate information. Anticipated Completion Date 06/30/2026 Responsible Contact Person OMES: Parker Wise, Felicia Clark 619: Sara Librandi, Kami Fullingim 670: Mike Powers, Mark Chronister, Erik Paulson

Finding Number 2023-011 Subject Heading (Financial) or AL no. and program name (Federal) 20.509 - Formula Grants for Rural Areas Planned Corrective Action We concur with the auditor’s recommendation. Staff will be trained on how to reconcile & identify discrepancies. Anticipated Completion Date September 2025 Responsible Contact Person Sam Ddamba

Finding Number: 2023-042 Finding Name: Inaccurate Reporting of Federal Expenditures Finding Condition(s): The Illinois Department of Employment Security (IDES) did not accurately report Federal expenditures under the Unemployment Insurance (UI) program. Name of Contact Person(s): Kelly McGrath, Manager of Accounting and Reporting – Illinois Department of Employment Security, Accounting and Reporting Corrective Action(s): The IDES has worked with its bank to address one of the underlying issues that prompted these adjustments and has updating its procedures for its GAAP package preparation. The IDES reviewed and considered this finding when preparing its fiscal year 2024 GAAP package. Proposed Completion Date: March 31, 2025 – Completed

Finding Number: 2023-012 Finding Name: Inaccurate Reporting of Federal Expenditures Finding Condition(s): The Illinois Department of Human Services (IDHS) did not accurately report federal expenditures, including amounts provided to subrecipients, under the Supplemental Nutrition Assistance (SNAP) Cluster, the Supplemental Nutrition for Women, Infants, and Children (WIC) programs, the Vocational Rehabilitation (VR) program, the Temporary Assistance for Needy Families (TANF), the Child Care Development Funds (CCDF) Cluster, the Social Services Block Grants (SSBG), the Block Grants for Prevention and Treatment of Substance Abuse (SAPT) program, and the Disability Insurance/SSI (SSDI) Cluster. Specifically, the auditors noted differences between the expenditure amounts provided for audit by the IDHS and the Schedule of Expenditures of Federal Awards (SEFA) amounts reported to the IOC, differences relative to amounts provided to program subrecipients, the cash basis expenditures provided by the IDHS for audit procedures included accrued (not paid) expenditures, and amounts passed through to other State agencies from the IDHS provided by the IDHS for audit procedures included expenditures paid outside of the fiscal year. Finally, IDHS’ controls over reporting federal expenditures were not designed at a sufficient level of precision to ensure complete and accurate reporting in a timely manner. Name of Contact Person(s): Sarah Eves, Bureau Chief – Illinois Department of Human Services, Bureau of General Accounting Corrective Action(s): The IDHS has created a spreadsheet with all federal expenditure data grouped by assistance listing numbers (ALN). The spreadsheet also contains a tab with only the major program expenditure data, which is compared the IDHS’ SEFA totals. Any discrepancies between the reporting methodologies are identified and researched. Proposed Completion Date: September 30, 2024 – Completed

The City will review the process for identifying federal awards to minimize the likelihood of errors in preparing the schedule of expenditures of federal awards to minimize the likelihood of errors in preparing the schedule of expenditures of federal awards. This will include inquiries of the Engineer’s Office.

Corrective Actions Taken or Planned Management concurs with the finding and is currently in the process of updating the accounting system to incorporate grant-specific specific tracking codes to further align with federal reporting standards. 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 Expected Implementation date: November 20, 2025