Corrective Action Plans

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 Number 2024-101 Subject Heading (Financial) or AL no. and program name (Federal) 10.557: Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) Planned Corrective Action Management agrees with this finding and is revising the standard operating procedure around preparation of Schedule Z to accurately capture PeopleSoft transactional data for appropriate accruals of federal revenues matching the fiscal year the related expenditures were incurred. Additionally, we will provide training for appropriate use of the budget reference field within PeopleSoft for recording expenditures and revenues relating to the period incurred to further address the cutoff issues identified. Anticipated Completion Date 6/30/26 Responsible Contact Person Ryon Fields, Interim CFO

Finding 2024-006: Preparation of the Schedule of Expenditures of Federal Awards (SEFA) Repeat Finding (2021-007, 2022-006, 2023-006) Condition: Controls were not adequate to ensure the SEFA accurately reflected each award's federal agency and Assistance Listing Number; differences existed between the SEFA and the underlying grant agreements/compliance supplements, requiring adjustment. Corrective Action: • Develop a standard SEFA preparation workpaper, to be used jointly with the Organization's outsourced accounting firm, that reconciles each federal award line to the general ledger and to the executed grant agreement/Notice of Award. • Establish a defined handoff process with the outsourced accounting firm sothe CFO receives the draft SEFA with sufficient lead time to review it internally before submission to the auditor. • Verify federal agency name and Assistance Listing Number for each award directly against grant documentation before submission. • Require a documented second-level review of the SEFA by the CFO, in addition to the outsourced firm's preparation, prior to issuance to the auditor. • Provide trainingto both the outsourced firm's preparer and internalfinance staff on Uniform Guidance §200.510 SEFA requirements. Responsible Party: Chief Financial Officer (in coordination with the Organization's outsourced accounting firm) Anticipated Completion Date: SEFA preparation workpaper and CFO review process adopted by December 1, 2026; in effect for the FY25 SEFA

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.

The following corrective action plan is the same plan implemented in response to Finding 2024-002, as both findings arise from the same underlying SEFA completeness issue: 1. Beginning with the fiscal year 2025 SEFA, the Foundation will compile the SEFA, and provide supporting documentation to the auditors, directly from experts of its grant financial reporting system (Airtable, mirroring DED's Euna/Amplifund system) reflecting all submitted grant-marked expenditures, approved and pending, rather than from Aplos records marked as DED-approved with an adjusted fund source. Target: September 30, 2026. 2. Develop and document a formal SEFA preparation checklist that reconciles federal expenditures from the general ledger, the grant reporting system (Amplifund/Euna) export, the deferred revenue schedule, and cash receipts prior to submission to auditors. Target: September 30, 2026. 3. Designate the Finance Director as the primary reviewer of the SEFA, with a mandatory pre-submission reconcilitation sign-off process. Target: September 30, 2026. 4. Provide targeted training to finance staff on Single Audit requirements, ARPA SLFRF cost-reimbursement grant accounting under 2 CFR Part 200, and SEFA prepataion using the grant reporting system of record. Target: August 31, 2026. 5. Engage the Foundation's auditors for a pre-audit SEFA review consultation in advance of the fiscal year 2025 audit to validate the revised approach.

525 North 1st Street, Lakeview, Oregon 97630 | (541) 947-2020 | www.townoflakeview.org Finding 2024-004 – Inadequate Schedule of Expenditures of Federal Awards (SEFA) (Material Weakness) Condition: During the audit, we noted that the SEFA prepared by the organization was incomplete, and inaccurate. Specifically, federal revenue amounts were shown instead of expenditures, and not all Federal awards were listed and amounts shown were not reconciled to the underlying accounting records. In addition, Grant funds were drawn (requested and received) for the same underlying expenditures in two different fiscal years, resulting in duplicate reimbursement. Cause: The inaccuracies appear to be due to inadequate procedures and controls over the identification, tracking, and reporting of federal awards. Management did not implement a formal process to compile and review SEFA information for completeness and accuracy. Context: The auditee did not provide a complete and accurate SEFA that included all federal expenditures that reconciled to the general ledger for Federal Awards, and did not list all federal awards. Specifically: • Management did not initially provide a SEFA for the audit period, it was not provided until late in the audit process. • During the audit procedures, the auditor identified additional federal expenditures that were not provided by the client, and not included in the original SEFA. • The SEFA submitted by management contained material errors, including incorrect expenditures amounts (revenues instead of expenditures), and inconsistencies with the general ledger (grant revenues from prior year expenditures included as expenditures again). • The SEFA required multiple revisions and significant auditor assistance due to incomplete data and reporting errors. This condition demonstrates that management did not have sufficient processes in place to identify, accumulate, and report federal expenditures, and did not provide accurate information for the SEFA preparation. Recommendation: We recommend that The Town of Lakeview establish policies and procedures to ensure that all Federal awards are identified and reported accurately on the SEFA. Internal controls should be designed to prevent, detect, or correct errors in a timely manner by performing periodic reconciliations of the SEFA information to the general ledger throughout the fiscal year. The Town of Lakeview should provide appropriate training to staff who are assigned to prepare and review the SEFA. Client's Response: The Town of Lakeview concurs with the recommendation and will work through the Corrective Action Plan to improve or solve the deficiency. Corrective Action Plan: The Town of Lakeview has taken significant organizational and procedural steps to strengthen its administration of federal awards and ensure future compliance with Uniform Guidance reporting requirements. Corrective actions implemented include: • The Town has hired a Finance Director with substantial experience in state and federal grant administration and financial reporting. The Finance Director is responsible for oversight of all federal financial reporting, including preparation and review of the annual Schedule of Expenditures of Federal Awards. 525 North 1st Street, Lakeview, Oregon 97630 | (541) 947-2020 | www.townoflakeview.org • The Town has hired a new Town Manager who has established improved financial oversight and accountability throughout the organization. The Town Manager will work closely with the Finance Director to monitor compliance with federal grant requirements and ensure adequate internal controls are maintained. • The Town Council has established a Citizen Finance Advisory Committee to provide independent oversight and review of the Town’s financial management practices. The committee will review financial reports, budget performance, and federal grant administration processes, providing recommendations to improve accountability and transparency. • The Town has developed and implemented formal policies and procedures governing the administration of federal awards including: o Identification and tracking of awards o Documentation of expenditures charged to federal programs o Procedures for maintaining grant files o Reconciliation of grant expenditures to the general ledger o Annual preparation and supervisory review of the Schedule of Expenditures of Federal Awards • Prior to completion of the annual financial statements and Single Audit, the Finance Director will perform a comprehensive reconciliation of all federal expenditures to the accounting records and grant documentation. The completed SEFA will undergo management review and approval by the Town Manager before being provided to the external auditors. Planned Implementation Date: The corrective actions described above have been implemented. The Town will continue to monitor compliance throughout the fiscal year, and the revised procedures will be fully incorporated into the preparation of the next annual SEFA. Responsible Person: Town of Lakeview Mayor.

Person Responsible for Implementing the Correction Plan: Autumn Stewart, City Recorder Anticipated Completion Date: June 30, 2026 Repeat Finding: Yes Reason Corrective Action Was Not Taken: Issue was found in the 2025 audit, so was not known at the time. Planned Corrective Action: The City will strengthen internal controls over SEFA identification and preparation to ensure compliance with Uniform Guidance single-audit requirements. The City will also implement enhanced review and communication procedures with external auditors, as the condition was significantly impacted by deficiencies in the auditors’ evaluation and classification of major programs during the audit 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

VIEWS OF RESPONSIBLE OFFICIALS To resolve this finding, the Government of Puerto Rico is transitioning to a new Enterprise Resource Planning (ERP) system. This new government-wide financial system is scheduled for a live launch in July 2026. This modern platform will provide the PRDF with the capability to produce all required SEFA preparation for Single Audits in a more agile and reliable manner. By streamlining data collection and fiscal reporting, this system will ensure that the Department meets all federal audit requirements on time. IMPLEMENTATION DATE During Fiscal Year 2026-2027 RESPONSIBLE PERSON Yessenia Peña Díaz Assistance Secretary of Administration

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.

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