Corrective Action Plans

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

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

By requiring Finance Department signatures for all grant applications, a comprehensive list of all potential program awards can be maintained. From this information, potential expenditures can be monitored for the awards inclusion on the SEFA.

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

Finding Number: 2025-001 Condition: The 2025 Schedule was initially overstated to include federal awards relating to ALN 14.251, Economic Development Initiative, Community Project Funding, and Miscellaneous Grants, expended during the year ended June 30, 2024. Planned Corrective Action: Food Bank of the Rockies, Inc. received a reimbursement grant for vehicles from the Department of Housing and Urban Development (HUD). While we purchased the vehicles in fiscal year 2024, we could not file the claim for reimbursement until fiscal year 2025. Guidance on the HUD claims process was greatly delayed for multiple reasons. We posted the cost and asset when ordered, following accounting principles generally accepted in the United States (GAAP). However, we did not include the funding on the 2024 Schedule as we had not yet filed the reimbursement claims, nor been given assurance they would be paid. Instead, we included it in the fiscal year 2025 Schedule as that was when the claims were filed and we had confirmation they would be paid in full. We understand now that, per Uniform Guidance 2 CFR 200.51(b), those funds should have been shown the fiscal year 2024 Schedule. With this understanding, moving forward we will include in the Schedule amounts that have been spent for which we have an agreement for reimbursement, regardless of timing of the claim being filed or level of certainty of reimbursement. Contact person responsible for corrective action: Heather MacKendrick Costa Anticipated Completion Date: Completed

2025-002 SEFA Presentation Error – Prior Year Criteria: Uniform Guidance (2 CFR §200.510(b)) requires that the Schedule of Expenditures of Federal Awards (SEFA) accurately present all federal awards, including the correct identifying numbers assigned by pass-through entities for each award. Accurate reporting is essential to ensure compliance with funding requirements and enable proper tracking and monitoring of federal awards. Client’s Response: Last year was the organization’s first time going through a Single Audit. Although the organization accurately tracked expenditures corresponding to the grant award, the transactions were charged to an unrestricted program. The correction was detected and corrected during this fiscal year. We have implemented the necessary internal controls to ensure that our grant reporting accurately reflects the expenditures for each of our respective grants. Proposed Implementation Date – 12/31/2025 Name of Contact Person – John Edwards, Sr. Email: jledwards@umadaop.org Phone: 419-255-4444

Corrective Action Plan Finding 2025-001 Federal Award Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance – Reporting Name of Contact Person Kimberly Carlo, Executive Director Corrective Action In this case it was noted that our Organization did not perform reconciliation procedures between the federal program reporting of direct client expenditures with our financial accounting records. Not performing this reconciliation lead to an unreconciled difference when determining whether the data was complete and accurate. We have thoroughly reviewed our internal procedures, identified weaknesses and implemented changes to assure this will never happen again. To prevent and detect such errors in the future, we have changed our internal procedures to include: Project files that are being closed and reported to the grantor are being reviewed on a monthly basis. During the review, project files will be verified that the funding sources used for expenditures reconcile with the funding sources used for payment as recorded in the financial accounting records. Any differences will be reconciled at this point and such documentation will be retained. Additionally, an annual reconciliation of all population data used for program expenditures will be reconciled with our financial accounting records. To prevent and detect such errors in the future, we have changed our internal procedures to include: 1. Each material list along with measures and funding sources will be printed for the client file for direct material and labor charges. 2. The financial coordinator will verify funding sources match with amounts reported in the financial accounting records. 3. Any changes to funding for material and labor will be printed for the client file and given to the financial coordinator to change funding sources in the IWI accounting system. 4. Once funding is changed, verification will be printed for the client file. 5. An annual reconciliation of client program expenditures will be reconciled with our revenue and expenditure report for each funding source. Implementation Immediate.

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.

Finding 2024-002 – Untimely and Inaccurate Preparation of the Schedule of Federal Awards (SEFA) (Sig-nificant Deficiency) Financial Reporting / Internal Control Over Compliance CFDA Title and Number: 97.036 Public Assistance Program – Disaster Grants Name of Federal Agency: Federal Emergency Management Agency (FEMA Internal Control over Compliance: Skills Knowledge and Education (SK&E) CFDA Title and Number: 66.202 Wastewater Treatment Plant Name of Federal Agency: U. S. Environmental Protection Agency Internal Control over Compliance: Skills Knowledge and Education (SK&E) Criteria: The Uniform Guidance (2 CFR §200.510(b)), requires the auditee to prepare a Schedule of Federal Ex-penditures of Federal Awards (SEFA) that accurately reports federal expenditures for each federal award, including the Assistance Listing number, federal agency, pass-through entity (if any), and amount expended for the fiscal year. In addition, (2 CFR §200.302(b)), requires financial management systems that provide for accurate, current, and complete disclosure of federal award expenditures and support reliable financial reporting and reconciled to the general ledger. Condition: The auditee did not timely or accurately prepare the Schedule of Expenditures of Federal Awards. Specifically: • The initial SEFA provided to auditors was significantly later than the requested date, and required signifi-cant auditor inquiry and assistance to complete. • Management did not demonstrate an understanding of the dates and amounts of federal expenditures to be reported on the SEFA. • The SEFA provided to auditors did not include all federal awards. • Required Assistance Listing numbers were not included for federal programs. • The format of the SEFA was not easily reconcilable to the general ledger, and required auditor-identified corrections and adjustments in order to fairly present federal expenditures in accordance with federal re-quirements. Cause: The condition resulted from: • An insufficient understanding of SEFA preparation requirements, including which expenditures to report and how federal awards should be presented; and • Inadequate internal controls over the preparation, review, and reconciliation of the SEFA to the account-ing records. Effect or Potential Effect: As a result of these conditions: • There was an increased risk that federal expenditures were incomplete, inaccurate, or improperly re-ported. • Management’s ability to determine total federal expenditures, for the fiscal year, including evaluation of Single Audit applicability, was impaired. • The entity relied on auditor assistance to identify omitted awards, reconcile amounts and bring the SEFA into compliance with federal reporting requirements, indicating a lack of effective internal controls over federal financial reporting. Questioned Cost: None noted here. Repeat of a Prior-Year Finding: No Recommendation: We recommend the entity strengthen its internal controls over federal financial reporting by: • Developing and documenting procedures for the timely preparation of the SEFA, including identification of all federal awards, correct Assistance Listing numbers, and determination of reportable expenditures. • Establish a process to reconcile the SEFA to the general ledger and to supporting records to ensure com-pleteness and accuracy. • Providing training to appropriate personnel regarding Uniform Guidance SEFA requirements and the de-termination of federal expenditures for reporting and audit threshold purposes. • Establish cutoff procedures to capture year-end accruals/deferred items and ensure completeness of ex-penditures for the SEFA. Views of Responsible Officials: Port of Brookings Harbor acknowledges this finding. Management recognizes that it did not fully understand SEFA reporting requirements. Management is committed to enhancing its under-standing of federal reporting requirements and strengthening internal controls to ensure future SEFA’s are prepared accurately, completely, and in a timely manner. Corrective Action Plan: While the Port disagrees with the characterization that the SEFA preparation was untimely, the Port acknowledges that inaccuracies were present in the report. The inaccuracies occurred because the Port believed it was following the direction and guidance contemplated in the Municipal Auditing Services Proposal provided by Umpqua Valley Financial, LLC, which indicated time would be dedicated to assisting the Port with grant administration regulations and related compliance requirements. Nevertheless, the Port accepts responsibility for strengthening its internal processes and will immediately develop and implement formal procedures for timely and accurate SEFA preparation. In addition, the Port will provide Uniform Guidance and SEFA training to appropriate perso,mel to improve compliance and federal financial reporting practices. The Port has attached a copy of the Municipal Auditing Services Proposal from Umpqua Valley Financial, LLC to demonstrate that the Port proactively sought guidance well in advance of the completion of the fiscal year and prior to the commencement and finalization of the audit process. Port Management remains committed to improving its understanding of Uniform Guidance requirements and strengthening its federal financial reporting and grant compliance practices moving forward. Sincerely, Travis Webster Port Manager

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.

The City acknowledges the finding. The City will strengthen procedures to identify, track, reconcile, and report federal award activity throughout the fiscal year so that a complete and accurate SEFA can be prepared in a timely manner for future audit periods. Procedures will include maintaining award documentation sufficient to identify the federal agency/program, Assistance Listing number, award or loan identifiers, expenditures or loan proceeds, outstanding federal loan balances, sub-recipient amounts if any, and required SEFA notes.

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

Management acknowledges that a formalized process to identify and track federal expenditures for SEFA preparation was not in place during the audit period. Steps have since been taken to improve tracking and reporting of federal expenditures throughout the year. With a stable accounting team in place since September 2024, management has increased oversight and accountability for grant coding and federal award identification. Additionally, the implementation of Blackbaud Financial Edge in FY2027 will allow for more precise tracking of funding sources, including the ability to segment federal and non-federal expenditures within programs and generate SEFA-ready reports. These improvements will enable the Organization to prepare a complete and accurate SEFA prior to the start of future audits and ensure compliance with Uniform Guidance requirements. Actions Taken - Established internal processes to identify and track federal expenditures throughout the fiscal year - Increased review procedures over grant coding and funding source classification - Assigned responsibility for SEFA preparation and review prior to audit fieldwork - Initiated implementation of Blackbaud Financial Edge to automate and enhance federal reporting capabilities

Finding 2024-001: Preparation of the Schedule of Expenditures of Federal Awards - Significant Deficiency in Internal Control Over Compliance Program: U.S. Department of Health and Human Services – Medicaid Cluster Management acknowledges the omission of PATH CITED expenditures from the SEFA for the year ended June 30, 2024. Management notes that the federal nature of the PATH CITED program was not identified in the original grant documentation or publicly available information provided by DHCS at the time the funding was awarded. Upon confirmation in 2025 that the program includes federal pass-through funding, the Organization worked to restate the SEFA and include the appropriate federal expenditures. To strengthen internal controls going forward, management has implemented procedures requiring review of funding agreements for federal funding indicators, maintaining a centralized register of federal awards to support SEFA preparation, and obtaining confirmation from funding agencies when the federal status of a program is unclear. Anticipated Completion Date: by June 30, 2026 Responsible Person: Virginia Lui VP, Controller

Coronavirus State and Local Fiscal Recovery – Assistance Listing No. 21.029 Cause: Controls over SEFA preparation and federal award identification were not sufficient to ensure all pass-through federal awards (including ARPA CPF) were captured with required identifiers (federal agency, ALN 21.029, pass-through name/number) before year-end reporting. Effect: An initially incomplete SEFA increases the risk that major programs are not properly identified for testing, which could result in modification of opinion due to incomplete SEFA, which ultimately could result in a delayed audit. Recommendation: We recommend CCAC implement and document SEFA preparation controls to ensure completeness and accuracy over maintaining a central grant repository containing award documents with federal agency, performing year-end SEFA reconciliation, and obtaining written ALN/FAIN confirmations from pass-through entities for any awards lacking federal identifiers and retaining those confirmations in the grant file. Views of Responsible Officials: There is no disagreement with the audit finding. See below for actions taken to remedy the finding. Management Response: Christina Cultural Center experienced a SEFA completeness finding during a year with bookkeeping turnover, which affected the initial compilation of federal award activity. In response, management worked closely with the audit team to confirm the complete listing of awards, validate pass-through entity details, and support accurate SEFA presentation. The organization has also identified cross-training as a key next step to strengthen continuity and reduce key-person dependency going forward.

CORRECTIVE ACTION PLAN Name of auditee: Friends of the Mission Finding: 2024-003 Name of audit firm: Propp Christensen Caniglia LLP Period covered by the audit: January 1, 2024 through December 31, 2024 CAP prepared by: Scott Thurmond, Executive Director Telephone: (916) 416-0901 Comments: Management agrees with the finding. Actions: Management has taken steps to ensure the SEFA is prepared accurately and timely.

Finding Number: 2024-033 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. Additionally, the auditors noted IDES’ 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): Kelly McGrath, Manager of Accounting and Reporting – Illinois Department of Employment Security, Accounting Services Division Corrective Action(s): This was a one-time event, which resulted in a finding in two fiscal years, resulting from the return of unused funds on debit cards held by a bank. As of December 2021, the bank was no longer IDES’ debit card provider. The bank asked to return the unused funds and the United States Department of Labor (DOL) agreed we could. If this was to happen again, the IDES will now know how to record it properly. No further action is needed at this time. Proposed Completion Date: February 28, 2026 – Completed

Finding Number: 2024-028 Finding Name: Inaccurate Reporting of Federal Expenditures Finding Condition(s): The Illinois Student Assistance Commission (ISAC) did not accurately report federal expenditures, including amounts passed-through to subrecipients, under the Child Care Development Fund (CCDF) Cluster. Additionally, the auditors noted ISAC’s controls over reporting federal expenditures, including amounts passed-through to subrecipients, were not designed at a sufficient level of precision to ensure complete and accurate reporting in a timely manner. Name of Contact Person(s): Rolake Adedara, Chief Financial Officer - Illinois Student Assistance Commission, Finance & Accounting Corrective Action(s): The CCDF Cluster program ended as of June 30, 2024. Lapse period payments (reported on a cash basis) made to beneficiaries during the year ended June 30, 2025, have been properly classified, and are not included as payments to subrecipients on the Schedule of Expenditures of Federal Awards (SEFA) for the year ended June 30, 2025. Proposed Completion Date: February 28, 2026

Finding Number: 2024-014 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 Food Distribution Cluster (FDC), 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, Deputy Chief Financial Officer – Illinois Department of Human Services Corrective Action(s): The IDHS will hire additional staff to ensure accurate review, reconciliation, and presentation of its federal grant expenditure data. Additionally, the IDHS has written draft procedures that will include (1) the identification and exclusion of accruals from total expenditures, ensuring cash-basis reporting, (2) how to identify and include/exclude current and prior year vouchers in transit, and (3) the review and validation of federal expenditures (and subrecipient expenditures). Proposed Completion Date: June 1, 2026

Finding Number: 2024-006 Finding Name: Inadequate Process for Monitoring Interagency Program Expenditures Finding Condition(s): The Illinois Department of Human Services (IDHS) does not have an adequate process for monitoring interagency expenditures claimed under or used to meet maintenance of effort (MOE) requirements of the Temporary Assistance for Needy Families (TANF) and Child Care Development Fund (CCDF) Cluster programs. Name of Contact Person(s): Sarah Eves, Deputy Chief Financial Officer – Illinois Department of Human Services Corrective Action(s): The IDHS will request quarterly certifications, control assessments, and program expenditure questionnaires for those agencies receiving funds from federal awards. Additionally, the IDHS will sample interagency expenditures and request that the agency provide supporting documentation for the expenses. This documentation will be reviewed by the IDHS to ensure that the expenditures meet federal program requirements. Proposed Completion Date: October 1, 2026

Other finding – SEFA Preparation Preparation of Schedule of Expenditures of Federal Awards Assistance Listing 21.027 – COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Federal Agencies: Department of Treasury Recommendation: The Corporation should update its policies and procedures and internal controls to ensure accurate reporting of the Schedule as required by the Uniform Guidance. Explanation of disagreement with audit finding: There is no disagreement with the finding and recommendation. Action planned/taken in response to finding: The Corporation established a centralized UMMS Office for Research and Sponsored Programs Administration (ORSPA) department in December 2025. The ORSPA department created a standard pre-award approval process for all sponsored proposals prior to submission or award acceptance. The pre-award approval process applies to all federal, state, local, private and commercial funding opportunities across all UMMS entities and covers new, renewal, resubmission and supplemental proposals. The establishment of a central intake process through one department, for all grants across the Corporation, enhances the controls to ensure complete and accurate reporting of the Schedule as required by the Uniform Guidance. Additionally, ORSPA and Corporate Financial Reporting implemented the following controls to ensure all expenditures of federal awards are included on the Schedule. These controls include:  Reconciliation of the grants from the pre-award approval process to the grants tagged in the accounting system;  Use of a specific grant identifier within the accounting system to track expenditures and revenue recognition and tag grants as federal, state or private funded;  Comparison of grant expenditures per the accounting system to the grant agreement;  Comparison of grant expenditures per the accounting system to the financial reporting submissions made to the federal agencies;  Certification from legal entity Finance Executives that the draft Schedule is complete and accurate;  Comparison of the prior year Schedule to the current year Schedule with further investigation around changes in grants and agencies included, and significant changes in the expenditures. Anticipated Completion Date – June 30, 2026 Name(s) of the contact person(s) responsible for corrective action: Jeff Chadwick, Financial Reporting Director, jeff.chadwick@umm.edu

Management has taken steps to contract an audit firm and is currently working with the auditors to perform the single audit for the fiscal year ended June 30, 2025, with anticipation of completion before the deadline of March 31, 2026. Management has also prepared a Schedule of Expenditures of Federal Awards for the fiscal year ended June 30, 2025.

Scotland County’s response for issues found: 1. We will double check to make sure we didn’t miss something for the SEFA report. 2. We will update the 2024 SEFA for the corrected amounts. 3. The Highway Planning and Construction (MODOT Intermodal) included the railroad bridge that no one could tell us where the money was coming from. This accounted for $1,228,104.64. We will correct this on the SEFA. 4. The ARPA was the interest received in 2024. We didn’t receive any more money from the state in 2024. We will get this added to the SEFA. 5. The HAVA Election Security Grant was missed when we were putting them in the report. We will get this added to the SEFA.

Finding Number: 2024-002 Finding Title: Incomplete Schedule of Expenditures of Federal Awards Federal Program Information: • Federal Agency: Department of the Treasury • Assistance Listing Number (ALN): 21.027 • Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Reporting - Schedule of Expenditures of Federal Awards (2 CFR §200.510(b)) Questioned Costs: $0 Repeat Finding: No Management's Response: The Board of Directors of Restoration Christian Ministries agrees with the finding. The Organization was unaware that pass-through funds from federal sources are required to be presented on the SEFA and has implemented procedures to ensure all grants are evaluated to ensure the SEFA is complete. Corrective Action Plan: Corrective Action #1: Federal Award Identification and Tracking System • Action: Create comprehensive federal awards tracking log including all direct and pass-through awards. Implement quarterly review process where Board members and Contract Accountant meet to identify all federal awards. Develop checklist to determine SEFA inclusion requirements. Board President will maintain master list of all grant agreements. • Responsible Person/Title: Board President and Contract Accountant • Anticipated Completion Date: January 15, 2026 Corrective Action #2: SEFA Reconciliation Procedures • Action: Establish quarterly procedures to reconcile SEFA to general ledger. Cross-reference all grant agreements and award letters. Document reconciliation process with dual sign-off from Contract Accountant and Board Treasurer. • Responsible Person/Title: Contract Accountant • Anticipated Completion Date: January 31, 2026 (initial); Ongoing quarterly thereafter Corrective Action #3: Independent Review Process • Action: Implement mandatory Board Treasurer independent review of SEFA prior to audit commencement. Treasurer will verify completeness by tracing to source documents. Present draft SEFA to full Board for review before finalizing. • Responsible Person/Title: Board Treasurer • Anticipated Completion Date: Annually, beginning with FY 2025 audit Corrective Action #4: Training • Action: Provide training to Contract Accountant and all Board members on SEFA requirements, including identification of federal awards and pass-through funding, and Board oversight responsibilities. • Responsible Person/Title: Board President • Anticipated Completion Date: February 28, 2026