Corrective Action Plans

Finding 1182878 (2025-013)

Material Weakness 2025

SC

Subrecipient Monitoring Special Tests & Provisions Significant Deficiency § 200.303

The South Carolina Department of Health and Human Services (SCDHHS) respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings ...

The South Carolina Department of Health and Human Services (SCDHHS) respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT U.S. Department of Health and Human Services Medicaid Cluster – Assistance Listing No. 93.775, 93.777, and 93.778 Disposition of Audit Finding: The SCDHHS concurs with the audit finding. Corrective Action: Management hereby proposes the Corrective Action Plan below. The Department will implement a control to ensure that the following Codes of Federal Regulations are being met: 42 CFR 438.602 (e) The state has implemented this requirement into its’ July 1, 2024 through June 30, 2027 contract with the MCOs. While the contract gives the MCOs a three-year period to have this audit completed, SC DHHS will engage each MCO to make a commitment to the date to have this audit completed and submitted. The audits will be submitted to the Director, Medicaid Managed Care Financing with copies to the Bureau Chief of the Bureau of Managed Care, and the Director of Strategic Communications in the Office of Communications and Public Relations. The Director, Medicaid Managed Care Financing will be responsible for tracking the submissions. 42 CFR 438.602 (g) The specific reference to the posting of the results of any audits under paragraph (e) is 42 CFR 438.602 (g)(4). The expected date of submission of the audits required under paragraph (e) will be provided to the Bureau Chief of the Bureau of Managed Care and the Director of Strategic Communications in the Office of Communications and Public Relations. The Director, Medicaid Managed Care Financing will be responsible for tracking the submissions and confirming with the Office of Communications and Public Relations the audits have been posted to the agency’s website. Anticipated Completion Date: June 30, 2026 Name of the contact person responsible for corrective action: • T Clark Phillip at (803) 898-1017

View Audit 394274

Finding 1182874 (2025-012)

Material Weakness 2025

State of South Carolina

SC

Subrecipient Monitoring Special Tests & Provisions Significant Deficiency § 200.303

The South Carolina Department of Health and Human Services (SCDHHS) respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings ...

The South Carolina Department of Health and Human Services (SCDHHS) respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT U.S. Department of Health and Human Services Medicaid Cluster – Assistance Listing No. 93.775, 93.777, and 93.778 Disposition of Audit Finding: The SCDHHS concurs with the audit finding. Corrective Action: In accordance with the current contract with the state survey and certification agency, the South Carolina Department of Public Health (DPH), SCDHHS has implemented the following actions to address the Provider Health and Safety Standards audit finding: • SCDHHS requires DPH to submit a quarterly summary report to SCDHHS which identifies nursing facilities surveyed, and F tags cited, including scope and severity measures. • SCDHHS requires DPH to submit a cumulative end-of-year report confirming that each facility has had a survey within an average interval not to exceed 12 months, and no later than 15 months after the date of the previous survey. • SCDHHS and DPH hold quarterly meetings to review the submitted reports and discuss findings. Meetings were held on 7-25-25 and 10-30-25, and the next meeting is scheduled for 1-15-26. Anticipated Completion Date: Completed Contact persons responsible for corrective action: • Margaret Alewine at (803) 898-0047 • Lisa Ragland at (803) 898-1387

View Audit 394274

Finding 1182870 (2025-011)

Material Weakness 2025

State of South Carolina

SC

Subrecipient Monitoring Special Tests & Provisions Eligibility § 200.303

The South Carolina Department of Health and Human Services (SCDHHS) respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings ...

The South Carolina Department of Health and Human Services (SCDHHS) respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT U.S. Department of Health and Human Services Medicaid Cluster – Assistance Listing No. 93.775, 93.777, and 93.778 Disposition of Audit Finding: The SCDHHS management concurs with the audit finding. Corrective Action: Regarding the Provider Enrollment Revalidation finding - One provider whose last enrollment validation date was 5/10/2014. The revalidation date for this provider would have been due by 5/10/2019 which would have been before the start of the Public Health Emergency (PHE). The current Provider Enrollment and Support Functions Team Director was not with SCDHHS at the time of the missed revalidation and we are unable to attest to reasons this provider did not complete revalidation, as required. Anticipated Completion Date: Our post-PHE revalidation restart began in July 2024 and will conclude by the required completion date of February 28, 2027. Once SCDHHS completes our current revalidation schedule, we will resume normal revalidation cadence. Contact persons responsible for corrective action: • Dawn Hunt at (803) 898-1843 • Nick Constantino at (803) 898-2561

View Audit 394274

Finding 1182866 (2025-010)

Material Weakness 2025

State of South Carolina

SC

Subrecipient Monitoring Special Tests & Provisions § 200.303

The South Carolina Department of Health and Human Services (SCDHHS) respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings ...

The South Carolina Department of Health and Human Services (SCDHHS) respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT U.S. Department of Health and Human Services 2025-010 Medicaid Cluster – Assistance Listing No. 93.775, 93.777, and 93.778 Disposition of Audit Finding: The SCDHHS management concurs with the audit finding. Corrective Action: • Regarding the five providers identified as not meeting SCDHHS eligibility requirements, we do not currently have a process, nor a mechanism in place, that allows SCDHHS to monitor the status of provider licenses issued by South Carolina Department of Labor, Licensing and Regulation (SCLLR) or Department of Public Health (DPH). Currently, a provider’s license status is verified during initial enrollment and revalidation. • Recently, SCDHHS completed a project with SCLLR to implement a data exchange allowing access to South Carolina provider licensing information specific to independent pharmacy services. We intend to broaden the scope of our project work with SCLLR to include the license status information for all South Carolina Medicaid providers. While we are actively engaged with SCLLR, we have had initial conversations with DPH and intend to replicate the data exchange process with them for entities licensed by DPH. Anticipated Completion Date: Currently, we do not have a final implementation date but estimate that this could be a six – 12-month timeline following execution of a signed Data Sharing Agreement (DSA). This estimate not only includes work with SCLLR but also required updates to our Medicaid Management Information System (MMIS) and development of associated policies and procedures. Once we have additional information, we will provide an update. Contact persons responsible for corrective action: • Dawn Hunt at (803) 898-1843 • Nick Constantino at (803) 898-2561

View Audit 394274

Finding 1182862 (2025-009)

Material Weakness 2025

State of South Carolina

SC

Subrecipient Monitoring Significant Deficiency § 200.303 § 200.306

The South Carolina Office of the Adjutant General respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consi...

The South Carolina Office of the Adjutant General respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Findings — FEDERAL AWARD PROGRAM AUDIT U.S. Department of Defense National Guard Military Operations and Maintenance (O&M) Projects – Assistance Listing No. 12.401 Disposition of Audit Finding: The Office of the Adjutant General concurs with the audit finding. Corrective Action: The Agency will strengthen controls by enhancing annual trainings to ensure matching requirements are properly tracked, documented, and applied to Federal expenditures as required by the Federal award. Additional notes will be added on the Federal Final Modification forms to address any differences required by the Cooperative Agreement. Anticipated Completion Date: 10/01/2026 Name of the contact person responsible for corrective action: Anita Ballington at 803-299-2031

View Audit 394274

Finding 1182861 (2025-008)

Material Weakness 2025

State of South Carolina

SC

Subrecipient Monitoring Period of Performance Allowable Costs / Cost Principles § 200.303 § 200.403

The South Carolina Office of the Adjutant General respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consi...

The South Carolina Office of the Adjutant General respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Findings — FEDERAL AWARD PROGRAM AUDIT U.S. Department of Defense National Guard Military Operations and Maintenance (O&M) Projects – Assistance Listing No. 12.401 Disposition of Audit Finding: The Office of the Adjutant General concurs with the audit finding. The $2,571 finding was identified by the Agency prior to the audit. The Agency was only able make corrections to the grants which remained open (total of $1,421). The Agency was unable to make corrections for the remaining amount as those grants had been closed. Corrective Action: The Agency relies on SCEIS workflow approvals to verify and approve the period of performance. The Agency currently has three or four levels of approvals (depending on the specific grant) for each Shopping Cart. During this process, the Shopping Carts are reviewed and approved/disapproved by the Cooperative Agreement budget analyst, the Grants Department, the Procurement Department and the Budget & Finance Department. Annual reminders are sent to each Cooperative Agreement and email verification of disbursements are filed. Additional quarterly quality control checks will be added to the process. Anticipated Completion Date: 6/30/2026 Name of the contact person responsible for corrective action: Anita Ballington at 803-299-4294

View Audit 394274

Finding 1182860 (2025-007)

Material Weakness 2025

State of South Carolina

SC

Subrecipient Monitoring Cash Management Allowable Costs / Cost Principles § 200.303

The South Carolina Office of the Adjutant General respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consi...

The South Carolina Office of the Adjutant General respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Findings — FEDERAL AWARD PROGRAM AUDIT U.S. Department of Defense National Guard Military Operations and Maintenance (O&M) Projects – Assistance Listing No. 12.401 Disposition of Audit Finding: The Office of the Adjutant General non-concurs with the audit finding. 1. The cited Regulation (National Guard Regulation 5-1) was changed from a Regulation to a policy guideline in 2020 by the National Guard Bureau (NGB) Grants and Cooperative Agreements Policy Letter (GCAPL) #20-02 dated 04 February 2020. 2. There is not a risk for interest liability to the State. The basis and thresholds for determining if a program is subject to interest payments is defined in Federal Code 31 CFR Part 205 and Treasury Financial Manual (TFM) 4A-2000, “Overall Disbursing Rules for All Federal Agencies.” In addition, the Cash Management Improvement Act Agreement (CIMA) between The State of South Carolina and The Secretary of the Treasury, United States Department of the Treasury, dated 6/30/2025, does not list the Agency’s Catalogue of Federal Domestic Assistance (CFDA) 12.401 as one of the State’s programs that meets or exceeds the State’s threshold for major Federal assistance programs. 3. The Cash Management testing used a one-to-one analysis based on monthly cash advance requests and monthly expenditures during the same time period. However, the testing, based on NGB Policy 5-1, should be from the date of receipt to the date of disbursement. 4. Lastly, the State of South Carolina’s Department of Administration does not allow submissions for Capital Projects (projects over $250,000) without the funding in possession of the requesting Agency. In addition, neither the Legislative Joint Bond Review Committee (JBRC) nor the State Fiscal Accountability Authority (SFAA) will approve a Capital Project without the Agency having the required funds on-hand. The average Readiness Center Revitalization (Capital Project) can take 2-3 years to complete, and the total funds have to be on-hand to receive approval for the start of the projects. This requires Cooperative Agreement 1001 to advance funding for projects months ahead of the execution of any Purchase Orders. Corrective Action: The Agency will continue to strive to minimize the time elapsed between transfer of funds from the United States Treasury and their disbursement by the State in accordance with the annual Request for Advance Payment Method Authorization signed between the State/Agency and the United States Property and Fiscal Officer (USPFO). Anticipated Completion Date: Current Name of the contact person responsible for corrective action: Anita Ballington at 803-299-4294

View Audit 394274

Finding 1182859 (2025-006)

Material Weakness 2025

State of South Carolina

SC

Allowable Costs / Cost Principles Subrecipient Monitoring Matching / Level of Effort / Earmarking § 200.303

The South Carolina Office of the Adjutant General respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consi...

The South Carolina Office of the Adjutant General respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Findings — FEDERAL AWARD PROGRAM AUDIT U.S. Department of Defense National Guard Military Operations and Maintenance (O&M) Projects – Assistance Listing No. 12.401 Disposition of Audit Finding: The Office of the Adjutant General concurs with the audit finding. Corrective Action: The Agency will continue to monitor reports and ensure each Cooperative Agreement adheres to the established Chart of Accounts. The Agency will continue to review purchase submissions in the SCEIS system for adherence to Cooperative Agreement matching requirements. Anticipated Completion Date: 10/01/2026 Name of the contact person responsible for corrective action: Anita Ballington at 803-229-4294

View Audit 394274

Finding 1182858 (2025-005)

Material Weakness 2025

State of South Carolina

SC

Allowable Costs / Cost Principles Subrecipient Monitoring § 200.303 § 200.430

The South Carolina Office of the Adjutant General respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consi...

The South Carolina Office of the Adjutant General respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Findings — FEDERAL AWARD PROGRAM AUDIT U.S. Department of Defense National Guard Military Operations and Maintenance (O&M) Projects – Assistance Listing No. 12.401 Disposition of Audit Finding: The Office of the Adjutant General concurs with the audit finding. Corrective Action: The Agency has added additional quality control measures within the approval process, is hiring an additional staff member who will be responsible for auditing personnel actions and personnel files, and has implemented monthly audits in addition to the current standard of annual audits. Anticipated Completion Date: 6/30/2026 Name of the contact person responsible for corrective action: Robert Faulk at 803-299-4337

View Audit 394274

Finding 1182857 (2025-004)

Material Weakness 2025

State of South Carolina

SC

Subrecipient Monitoring § 200.303

The South Carolina Office of the Adjutant General respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consi...

The South Carolina Office of the Adjutant General respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Findings — FEDERAL AWARD PROGRAM AUDIT United States Department of Homeland Security Public Assistance (Presidentially Declared Disasters) - Assistance Listing No. 97.036 Disposition of Audit Finding: The SCEMD of the Office of the Adjutant General concurs with the audit finding. Corrective Action: 1. The SCEMD Finance and Administration staff will implement and/or update the succession plan for any role or team member responsible for duties within the FFATA reporting process. 2. SCEMD will continue its monthly review of the South Carolina Recovery Grants (SCRG) platform by the SCEMD Finance and Administration staff to ensure the accuracy of information gathered for FFATA reporting. Where any prior reporting inaccuracies may be identified, FFATA reporting corrections of subrecipient obligations will be made. Anticipated Completion Date: June 30, 2026 Name of the contact person responsible for corrective action: Landry Phillips at LPhillips@emd.sc.gov or 803-737-8559

View Audit 394274

Finding 1182855 (2025-003)

Material Weakness 2025

State of South Carolina

SC

Subrecipient Monitoring Period of Performance Allowable Costs / Cost Principles § 200.303 § 200.403

The South Carolina Office of the Adjutant General respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consi...

The South Carolina Office of the Adjutant General respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Findings — FEDERAL AWARD PROGRAM AUDIT United States Department of Homeland Security 2025-003 Public Assistance (Presidentially Declared Disasters) - Assistance Listing No. 97.036 Disposition of Audit Finding: The South Carolina Emergency Management Division (SCEMD) of the Office of the Adjutant General concurs with the audit finding. Corrective Action: The Agency will refine its Public Assistance (PA) Reimbursement Review SOP and related Recovery Grants and Finance staff training to specify a requirement to validate that for projects under PA grants declared in 2018 and before, Direct Administrative Costs (DAC) were expended before the end of the project period of performance. In addition, the Recipient has submitted a time extension for the project period of performance but does not yet have approval from FEMA. Notes: • DAC was an eligible category of costs in PA projects under disaster grants through 2017 and optional for those declared August 1, 2017, through October 04, 2018 (opt-in). • Federal PA policy shifted to a management costs approach for projects under incidents declared on or after October 05, 2018. See attached FEMA Recovery Policy FP 104-11-2. Management costs are eligible for reimbursement up to 180 days after the subrecipient completes its last non-management cost project (p. 5). • Guidance regarding Direct Administrative Costs (see FEMA table attached) indicates that project closeout activities are eligible direct costs,which may have led to the Recipient considering DAC during the closeout period as eligible even when the project period of performance had ended. • The Federal Agency involved, FEMA, closed the project without noting an issue with reimbursement of these expenditures. Anticipated Completion Date: June 30, 2026 2 Name of the contact person responsible for corrective action: • Emily Bentley, SCEMD Chief of Mitigation and Recovery, at (803) 737-8774 • Antonio Johnson, SCEMD Grants and Finance Manager, at (803) 737-8606

View Audit 394274

Finding 1182853 (2025-003)

Material Weakness 2025

City of Meriden, Connecticut

CT

Reporting Significant Deficiency

Reporting Description of Finding The SLFRF Project and Expense Report due October 30, 2024 was submitted late on November 13, 2024. This report should have been submitted 30 days after the quarter ending September 30, 2024 (October 30). Statement of Concurrence or Nonconcurrence Management agrees wi...

Reporting Description of Finding The SLFRF Project and Expense Report due October 30, 2024 was submitted late on November 13, 2024. This report should have been submitted 30 days after the quarter ending September 30, 2024 (October 30). Statement of Concurrence or Nonconcurrence Management agrees with this finding. Corrective Action We recommend that the City review its reporting processes and related controls to ensure reporting requirements are submitted timely. Projected Completion Date June 30, 2026 Name of Contact Person Kevin McNabola, Finance Director

View Audit 394266

Finding 1182852 (2025-002)

Material Weakness 2025

City of Meriden, Connecticut

CT

Procurement, Suspension & Debarment

Procurement Description of Finding Purchases in excess of $25,000 will be made pursuant to the formal bidding requirements established in Chapter VIII – C-1 of the City Charter. The City Manager is required to sign contracts prior to the issuance of a purchase order when the sealed bidding method of...

Procurement Description of Finding Purchases in excess of $25,000 will be made pursuant to the formal bidding requirements established in Chapter VIII – C-1 of the City Charter. The City Manager is required to sign contracts prior to the issuance of a purchase order when the sealed bidding method of procurement is utilized. The contract was signed by the vendor and returned to the City, but was not signed by the City Manager prior to the issuance of the related purchase order. Statement of Concurrence or Nonconcurrence Management agrees with this finding. Corrective Action We recommend that the City review its procurement controls to ensure they obtain the proper approvals to comply with local policy. Projected Completion Date June 30, 2026 Name of Contact Person Kevin McNabola, Finance Director

View Audit 394266

Finding 1182851 (2025-001)

Material Weakness 2025

City of Meriden, Connecticut

CT

Procurement, Suspension & Debarment

Procurement Description of Finding The City utilized a noncompetitive procurement with a bid waiver. However, the rationale did not meet the criteria for a noncompetitive procurement with federal funds. The small-business beneficiary of this project would have suffered significant losses had the pro...

Procurement Description of Finding The City utilized a noncompetitive procurement with a bid waiver. However, the rationale did not meet the criteria for a noncompetitive procurement with federal funds. The small-business beneficiary of this project would have suffered significant losses had the project been delayed in order for a competitive procurement to take place. Due to the urgency/timeliness to maintain the schedule, a bid waiver was obtained; however, the rationale for the bid waiver does not comply with federal procurement standards. Statement of Concurrence or Nonconcurrence Management agrees with this finding. Corrective Action We recommend that the City review its procurement processes to ensure they comply with federalguidance. Projected Completion Date June 30, 2026 Name of Contact Person Kevin McNabola, Finance Director

View Audit 394266

Finding 1182850 (2025-001)

Material Weakness 2025

Research for Action, Inc.

PA

Internal Control / Segregation of Duties Cash Management

During our testing of cash management procedures, we noted that the Organization did not maintain documentation evidencing review or approval of federal fund drawdowns. The drawdown files tested did not include evidence demonstrating that an authorized individual reviewed and approved the request pr...

During our testing of cash management procedures, we noted that the Organization did not maintain documentation evidencing review or approval of federal fund drawdowns. The drawdown files tested did not include evidence demonstrating that an authorized individual reviewed and approved the request prior to submission. Recommendation: We recommend that the Organization establish and implement a formalized approval process for all federal fund drawdowns. This process should include documented review and approval by an authorized individual prior to the submission of each draw request. The Organization should also ensure adequate staffing and clear assignment of responsibilities within the finance department to maintain proper segregation of duties and consistent oversight. Implementing these procedures will strengthen internal controls, reduce the risk of inaccuracies or unauthorized draws, and promote full compliance with federal cash management requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization will implement an approval system. Name(s) of the contact person(s) responsible for corrective action: Myrteny Metzger, Comptroller and Cyra Copeland, Senior Director of Finance Planned completion date for corrective action plan: the planned corrective action will be completed by February 2026.

View Audit 394260

Finding 1182849 (2025-001)

Material Weakness 2025

Long Beach City School District

NY

Allowable Costs / Cost Principles Significant Deficiency Matching / Level of Effort / Earmarking § 200.430

Significant Deficiencies 2024-001. Allowable Costs/Cost Principles United States Department of Education, Passed Through New York State, Department of Education: Special Education Cluster Special Education Grants to States: IDEA Part B ALN: 84.027 Special Education Preschool Grants: IDEA Preschool A...

Significant Deficiencies 2024-001. Allowable Costs/Cost Principles United States Department of Education, Passed Through New York State, Department of Education: Special Education Cluster Special Education Grants to States: IDEA Part B ALN: 84.027 Special Education Preschool Grants: IDEA Preschool ALN: 84.173 Condition: Subpart E, 2 CFR §200.430 of the Uniform Guidance requires that charges to “Federal awards for salaries and wages must be based on records that accurately reflect the work performed.” The documentation should support the distribution of the employee’s compensation among specific activities if the employee works on more than one federal award, or a federal award and non-federal award. The preparation of personnel activity reports (PAR) or periodic certifications or the equivalent is the most effective way to comply with this requirement. During the current year, the District did not prepare this documentation, and, therefore, did not comply with Subpart E, 2 CFR §200.430. Current Status: The District has not implemented revised procedures to document after-the-fact personnel activity records for salaries and wages charged to federal awards, as required by 2 C.F.R. § 200.430. Planned Corrective Action: The District will adopt procedures that ensure that time performed will be used to support costs charged to the federal award, and comply with Subpart E, 2 CFR §200.430. Responsible Contact Person: Michael I. DeVito, Esq., Assistant Superintendent for Finance and Operations. Long Beach City School District 235 Lido Boulevard Lido Beach, New York 11561 mdevito@lbeach.org 516-897-2090 Anticipated Completion Date: June 30, 2026.

View Audit 394256

Finding 1182845 (2025-021)

Material Weakness 2025

State of Vermont

VT

Eligibility Matching / Level of Effort / Earmarking Special Tests & Provisions § 200.303

Reference Number: 2025-021, 2019-010 Federal Agency: U.S. Department of Health and Human Services State Agency: Agency of Human Services Federal Program: Medicaid Cluster Assistance Listing Number: 93.775, 93.777, 93.778 Award Number and Year: 2405VT5MAP (10/1/2023 – 9/30/2024) 2505VT5MAP (10/1/2024...

Reference Number: 2025-021, 2019-010 Federal Agency: U.S. Department of Health and Human Services State Agency: Agency of Human Services Federal Program: Medicaid Cluster Assistance Listing Number: 93.775, 93.777, 93.778 Award Number and Year: 2405VT5MAP (10/1/2023 – 9/30/2024) 2505VT5MAP (10/1/2024 – 9/30/2025) Compliance Requirement: Special Tests and Provisions - Provider Health and Safety Standards Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Recommendation: We recommend the Agency review procedures and controls and complete implementation of its corrective action plan from a prior audit to ensure that documentation is maintained in accordance with program requirements and that all providers are compliant with required health and safety standards. Views of responsible officials: Management agrees with the finding. Corrective Action Plan: All Letters of Good Standing as well as a Standard Operating Procedure to ensure continuation were implemented in April of 2022. Prior to April the process was manual and via telephone or email with the Tax Department. All providers who had their tax standing validated prior to April 2022 via phone or email were not solicited to get a written notification from the Tax Commissioner. As of April 2022, all tax standing reviews are validated within the Vermont Department of Taxes MyVTax portal. A confirmation of good standing is uploaded to the case within the Provider Management Module (PMM) and documented within the system. If verification cannot occur through the MyVTax portal, a Lexis Nexis report is run to validate if any liens or judgments result, the report is attached within PMM, and the system is documented. If verification of good standing does not result from either method, the application is returned to the provider to produce written confirmation of good standing from the Vermont Department of Taxes. The document is uploaded into PMM at this point. Although the Agency has implemented its corrective action plan from a prior year audit, cases will still be identified under this CAP until the provider is due for their 5-year revalidation and successfully revalidates with VT Medicaid. The additional provider identified during the selection of sixty providers for testing, for which a tax standing verification was not performed during revalidation, was the result of an isolated oversight attributable to human error. The Agency has determined that this instance does not reflect a systemic deficiency in the tax verification process. A tax standing verification for the identified provider was conducted post-audit in September 2025 and confirmed the provider was in Good Standing. Scheduled Completion Date of Corrective Action Plan: Completed Contacts for Corrective Action Plan: Deidra Jarvis, Provider Member Relations Manager, diedra.jarvis@vermont.gov Peter Moino, AHS Director of Internal Audit, peter.moino@vermont.gov

View Audit 394235

Finding 1182842 (2025-020)

Material Weakness 2025

State of Vermont

VT

Student Financial Aid Eligibility Material Weakness § 200.303

Reference Number: 2025-020 Prior Year Finding: No Federal Agency: U.S. Department of Health and Human Services State Agency: Agency of Human Services Federal Program: Foster Care – Title IV-E Assistance Listing Number: 93.658 Award Number and Year: 2401VTFOST (10/1/2023 – 9/30/2025) 2501VTFOST (10/1...

Reference Number: 2025-020 Prior Year Finding: No Federal Agency: U.S. Department of Health and Human Services State Agency: Agency of Human Services Federal Program: Foster Care – Title IV-E Assistance Listing Number: 93.658 Award Number and Year: 2401VTFOST (10/1/2023 – 9/30/2025) 2501VTFOST (10/1/2024 – 9/30/2026) Compliance Requirement: Eligibility Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance Recommendation: We recommend that the Agency review and enhance procedures and controls to ensure that it correctly identifies the eligible federal program for all cases coded in CDDIS. We further recommend that children on whose behalf payments are charged to Foster Care are eligible for benefits under the program. Views of responsible officials: Management agrees with the finding. Corrective Action Plan: The Agency will work with the IT systems of both the Family Services and Child Development Divisions to ensure that accurate eligibility information is shared between the systems. This will include: 1. What program each child is eligible for, adoption or foster care 2. The accurate start and end dates of eligibility 3. Any changes to eligibility during the life of a case The staff from Family Services will ensure that all Title IV-E eligibility information is shared with IT as they create the processes to share that information with the Child Development Division. The staff at the Child Development Division will work with their IT vendor to ensure all updates are completed and tested to ensure that Title IV-E funds are being claimed appropriately. Scheduled Completion Date of Corrective Action Plan: The underlying work to clarify the eligibility information needed has already begun and the process of updating the IT systems on both the FSD and CDD sides will be completed by April 1, 2026. Contacts for Corrective Action Plan: Heather McLain, Revenue Enhancement Director, Family Services, heather.mclain@vermont.gov Brenda Hallock, Revenue Team Lead, Family Services, brenda.hallock@vermont.gov Karolyn Long, Operations Director, Child Development Division, karolyn.long@vermont.gov Ed Dwinell, Financial Director, DCF Business Office, ed.dwinell@vermont.gov Peter Moino, AHS Director of Internal Audit, peter.moino@vermont.gov

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Finding 1182841 (2025-019)

Material Weakness 2025

State of Vermont

VT

Special Tests & Provisions Subrecipient Monitoring Allowable Costs / Cost Principles

Reference Number: 2025-019 Prior Year Finding: 2024-020 Federal Agency: U.S. Department of Health and Human Services State Agency: Agency of Human Services Federal Program: CCDF Cluster Assistance Listing Number: 93.575, 93.596 Award Number and Year: 2401VTCCDD (10/1/2023 – 9/30/2026) 2501VTCCDD (10...

Reference Number: 2025-019 Prior Year Finding: 2024-020 Federal Agency: U.S. Department of Health and Human Services State Agency: Agency of Human Services Federal Program: CCDF Cluster Assistance Listing Number: 93.575, 93.596 Award Number and Year: 2401VTCCDD (10/1/2023 – 9/30/2026) 2501VTCCDD (10/1/2024 – 9/30/2027) Compliance Requirement: Special Tests and Provisions – Health and Safety Requirements Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance Recommendation: We recommend that the Agency review and enhance training monitoring procedures and controls to ensure that all child care providers complete required health and safety training. The Agency should update its training content to include all required elements and ensure that provider corrective action plans and documentation are properly maintained. Site visit documentation should clearly indicate the results of training requirement monitoring. Views of responsible officials: Management agrees with the finding. Corrective Action Plan: DCF-CDD continues their rule revision process and now has the added support of a project manager and legal counsel. The revision process has been rigorous, and the rules have undergone several drafts. The public has had another opportunity to provide feedback on the latest draft prior to the formal promulgation process. Additionally, CDD received technical assistance from our federal partners to ensure our rule revisions met all CCDF requirements and will continue to refer to this document as we move the rules towards promulgation. The proposed rules will address the findings documented in this audit related to the federal requirement that pre-service orientation includes the required eleven (11) healthy and safety topics which staff will be required to complete, “before being left alone with children, counted in staff to child ratios, or within one (1) month of starting employment, whichever comes first.” DCF-CDD submitted an RFP for a new pre-service orientation training to include all the required health and safety topics that must be covered within the first month of employment. CDD will continue to work with the apparent successful bidder to ensure these modules are available to the field in 2026. DCF-CDD licensing unit will review the results of the single audit with licensing staff and our partners at Northern Lights at CCV (NL). CDD will begin a shift in our site visit preparation process that includes NL providing the division with a complete list of staff who have and who have not completed the required number of annual training hours. CDD licensing will document deficiencies in site visit reports and will require a plan from the providers to come into compliance. Scheduled Completion Date of Corrective Action Plan: DCF-CDD anticipates the licensing rules will be submitted to ICAR on February 20, 2026. This date may need to shift dependent on legal counsel’s final review of the rules and the weeks needed to prepare the documents required at this stage in the promulgation. CDD will be provided with a promulgation timeline which we aim to have completed before the end of 2026. DCF-CDD will seek outside contractual support to develop guidance manuals and training for the field on the rule changes, which includes shifts in required pre-service orientation topics. DCF-CDD pre-service orientation modules are scheduled to be completed within six (6)-nine (9) months from when the contract has been signed between the SOV and the apparent successful bidder. DCF-CDD will implement the site visit preparation practice shift by April-May 2026. This work requires NL staff to shift job responsibilities to accommodate the ongoing training review of the staff for all providers. By January 26, 2026, CDD director of child care licensing will meet with the licensing supervisors to review the results of this audit, review the CAP, and establish a plan for supervisory oversight at it relates to licensors documenting training deficiencies when conducting site visits. By January 27, 2026, CDD director of child care licensing will meet with the licensing unit to review the results of this audit, review the CAP, discuss the shift in site visit preparation practice as we partner with NL who will be reviewing compliance with annual training hours, and discuss the expectations around how deficiencies must be documented in annual site visit reports. Contacts for Corrective Action Plan: Beth Maurer, Director of Child Care Licensing, elizabeth.maurer@vermont.gov Kelly Lyford, Licensing Supervisor, kelly.lyford@vermont.gov Janet McLaughlin, CDD Deputy Commissioner, janet.mclaughlin@vermont.gov Dawn Rouse, Director of Statewide Systems, dawn.rouse@vermont.gov Peter Moino, AHS Director of Internal Audit, peter.moino@vermont.gov

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Finding 1182838 (2025-018)

Material Weakness 2025

State of Vermont

VT

Procurement, Suspension & Debarment Subrecipient Monitoring Reporting § 200.303

Reference Number: 2025-018 Prior Year Finding: 2024-018, 2023-024 Federal Agency: U.S. Department of Health and Human Services State Agency: Agency of Human Services Federal Program: COVID-19 - Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Hea...

Reference Number: 2025-018 Prior Year Finding: 2024-018, 2023-024 Federal Agency: U.S. Department of Health and Human Services State Agency: Agency of Human Services Federal Program: COVID-19 - Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crises Assistance Listing Number: 93.391 Award Number and Year: NH75OT000034 (6/1/2021 – 3/24/2025) Compliance Requirement: Reporting – Federal Funding Accountability and Transparency Act (FFATA) Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Recommendation: We recommend the Agency complete implementation of its prior year CAP to ensure that all required subawards and subaward modifications are reported timely to FSRS in accordance with FFATA requirements and that all previously issued subawards are reported. Views of responsible officials: Management agrees with the finding. Corrective Action Plan: The Financial Administrator will ensure that subrecipient grants containing federal funding that meet the FFATA reporting threshold are marked as “required for entry into the FFATA system” upon grant execution. The Financial Administrator and Manager will then confirm that all executed agreements that meet the FFATA reporting requirement have been entered and submitted into the federal reporting system by the last business day of each month. Please note that the scheduled completion date is February 1, 2023 as the same FFATA reporting finding was identified for a different program during the SFY22 Single Audit, and the corrective action plan was applied across the Department as a whole. The FFATA issues identified in the SFY25 Single Audit pre-dated the implementation of the Health Department’s original corrective action plan. Scheduled Completion Date of Corrective Action Plan: February 1, 2023 Contacts for Corrective Action Plan: Lillian Smith, Financial Administrator, Vermont Department of Health, lillian.smith@vermont.gov Jessica Brown, Financial Manager, Vermont Department of Health, jessica.brown@vermont.gov Megan Hoke, Financial Director, Vermont Department of Health, megan.hoke@vermont.gov Peter Moino, Director of Internal Audit, Vermont Agency of Human Services, peter.moino@vermont.gov

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Finding 1182837 (2025-017)

Material Weakness 2025

State of Vermont

VT

Procurement, Suspension & Debarment § 200.219 § 200.303 § 200.324

Reference Number: 2025-017 Prior Year Finding: No Federal Agency: U.S. Department of Health and Human Services State Agency: Agency of Human Services Federal Program: COVID-19 - Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcar...

Reference Number: 2025-017 Prior Year Finding: No Federal Agency: U.S. Department of Health and Human Services State Agency: Agency of Human Services Federal Program: COVID-19 - Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crises Assistance Listing Number: 93.391 Award Number and Year: NH75OT000034 (6/1/2021 – 3/24/2025) Compliance Requirement: Procurement Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Recommendation: We recommend the Agency review and enhance internal controls and procedures to ensure that it maintains documentation that it performs a cost analysis for all procurement actions in accordance with Agency of Administration Bulletin No. 3.5 and federal requirements. Views of responsible officials: Management agrees with the finding. Corrective Action Plan: The VDH Director of Communications will ensure that copies of any cost analysis performed as part of the RFP review process are collected from department staff and saved in the procurement files for the associated contract. Documentation will be maintained according to Administrative Bulletin 3.5 and federal records retention requirements. Scheduled Completion Date of Corrective Action Plan: March 1, 2026 Contacts for Corrective Action Plan: Katie Warchut, Director of Communications, Vermont Department of Health, katie.warchut@vermont.gov Megan Hoke, Financial Director, Vermont Department of Health, megan.hoke@vermont.gov Peter Moino, Director of Internal Audit, Vermont Agency of Human Services, peter.moino@vermont.gov

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Finding 1182836 (2025-016)

Material Weakness 2025

State of Vermont

VT

Reporting Period of Performance Significant Deficiency § 200.303

Reference Number: 2025-016 Prior Year Finding: No Federal Agency: U.S. Department of Health and Human Services State Agency: Agency of Human Services Federal Program: COVID-19 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Assistance Listing Number: 93.323 Award Number and Year...

Reference Number: 2025-016 Prior Year Finding: No Federal Agency: U.S. Department of Health and Human Services State Agency: Agency of Human Services Federal Program: COVID-19 - Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Assistance Listing Number: 93.323 Award Number and Year: 19NU50CK000520 (8/1/2019 – 7/31/2027) Compliance Requirement: Reporting – Financial Reports Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Recommendation: We recommend the Agency review and enhance internal controls and procedures to ensure that financial reports are accurate and agree with supporting documentation. The reviewer should verify that reports are tied to supporting documentation before they are approved and submitted. Views of responsible officials: Management agrees with the finding. Corrective Action Plan: For each required financial report, the Financial Administrator will prepare the appropriate information and review it with the PH Program Manager prior to submission to the CDC. Amounts reported by budget category will align with the budget category generated by the Department’s financial reporting system. Any changes made to the amounts reported by budget category will be discussed by the PH Program Manager and the Financial Administrator and documented in the report backup file. Once the financial information has been reviewed by both the Financial Administrator and the PH Program Manager, the PH Program Manager will submit the financial information into the CDCs reporting system. After the report has been submitted the PH Program Manager will save a screenshot or some other form of documentation verifying timely submission. A copy of the submitted report will be sent to the Financial Administrator who will perform a final review of the data submitted to the CDC. Copies of the backup file and final submitted report will remain in the business office federal grant records for the required retention period associated with the federal grant award. Scheduled Completion Date of Corrective Action Plan: January 1, 2026 Contacts for Corrective Action Plan: Mia Romeo, Financial Administrator, Vermont Department of Health, mia.romeo@vermont.gov Catie Markesich, PH Program Manager, Vermont Department of Health, catherine.markesich@vermont.gov Megan Hoke, Financial Director, Vermont Department of Health, megan.hoke@vermont.gov Peter Moino, Director of Internal Audit, Vermont Agency of Human Services, peter.moino@vermont.gov

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Finding 1182834 (2025-015)

Material Weakness 2025

State of Vermont

VT

Reporting Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

Reference Number: 2025-015 Prior Year Finding: No Federal Agency: U.S. Department of Education State Agency: Agency of Human Services Federal Program: Rehabilitation Services – Vocational Rehabilitation Grants to States Assistance Listing Number: 84.126 Award Number and Year: H126A240067 (10/1/2023 ...

Reference Number: 2025-015 Prior Year Finding: No Federal Agency: U.S. Department of Education State Agency: Agency of Human Services Federal Program: Rehabilitation Services – Vocational Rehabilitation Grants to States Assistance Listing Number: 84.126 Award Number and Year: H126A240067 (10/1/2023 – 9/30/2025) H126A240068 (10/1/2023 – 9/30/2025) Compliance Requirement: Reporting – Case Services Report (RSA-911) Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Recommendation: We recommend the Agency review and enhance internal controls and procedures to ensure that Case Service Reports are accurate and agree with supporting documentation. The reviewer should verify that reports are tied to supporting documentation before they are approved and submitted. Views of responsible officials: Management agrees with the finding. Corrective Action Plan: The HireAbility Performance Management team will conduct a training for all counselors on expectations for documentation in alignment with the regulations for element 398. After the training, the team will conduct a bi-monthly review of 40 cases statewide to ensure the date reported on the RSA-911 and the case documentation match. The team will continue these reviews over the course of two quarters (six months). The results of these reviews will be kept in a spreadsheet for documentation purposes. Information to be captured on this spreadsheet will include the case ID, counselor of record, reported IPE date, and date on supporting IPE documentation. For caseloads that do not have matching documentation, the Performance Management team will meet with the counselor’s supervisor to discuss ways to improve their case practices. Scheduled Completion Date of Corrective Action Plan: The two quarters of case reviews will be completed by the last day of the month, starting in January 2026 and ending on June 30, 2026. Contacts for Corrective Action Plan: Amanda Arnold, Vocational Rehabilitation (VR) Quality Assurance Manager, amanda.arnold@vermont.gov Peter Moino, AHS Director of Internal Audit, peter.moino@vermont.gov

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Finding 1182833 (2025-014)

Material Weakness 2025

State of Vermont

VT

Reporting § 200.303 § 200.502

Reference Number: 2025-014 Prior Year Finding: No Federal Agency: U.S. Environmental Protection Agency State Agency: Department of Environmental Conservation Federal Program: Drinking Water Sate Revolving Fund Assistance Listing Number: 66.468 Award Number and Year: 99121S23 (10/1/2023 – 9/30/2030) ...

Reference Number: 2025-014 Prior Year Finding: No Federal Agency: U.S. Environmental Protection Agency State Agency: Department of Environmental Conservation Federal Program: Drinking Water Sate Revolving Fund Assistance Listing Number: 66.468 Award Number and Year: 99121S23 (10/1/2023 – 9/30/2030) 99121E23 (10/1/2023 – 9/30/2030) Compliance Requirement: Reporting – Schedule of Expenditure of Federal Awards Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance Recommendation: We recommend the Department review and enhance internal controls and procedures for SEFA preparation to ensure that expenditures are reported accurately on the SEFA. Views of responsible officials: Management agrees with the finding. Corrective Action Plan: This error was caused by a data entry error by our Agency Central Office as they are the entity that enters all vouchers into the Vision Accounting system. This error was discovered by us during our normal monthly review of all federal grant expenditures that we complete before we process our federal draws. Unfortunately, this error occurred in June, which is the last month of the fiscal year, and the reviews happen after the month is closed in the accounting system and we can run all our reports for the month. That being the case, the correction had to be entered in July which is a different fiscal year and was not reflected in the data that was used to complete the SEFA for the prior fiscal year. As a result, we have reviewed our internal controls to more effectively prevent and/or detect errors upon transaction entry into Vision in collaboration with the Agency Central Office and to also ensure expenditures are reported accurately on the SEFA, by incorporating the following additional steps when preparing the SEFA: 1. Running a report from the state finance system (VISION) that will show any corrections that were made that pertain to the prior fiscal year transactions and adjust the SEFA amounts accordingly. 2. Running an additional balance report from the Loans and Grants Tracking System (LGTS) to help reconcile total amounts spent on loan disbursements under the Assistance Listing Numbers (ALN) and compare that to the total transactions in Vision to ensure they match. Scheduled Completion Date of Corrective Action Plan: July 1, 2026 Contacts for Corrective Action Plan: Mercedes Piñón, AID Financial Manager III, mercedes.pinon@vermont.gov David Pasco, AID Financial Director I, david.pasco@vermont.gov

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Finding 1182832 (2025-013)

Material Weakness 2025

State of Vermont

VT

Procurement, Suspension & Debarment Subrecipient Monitoring Reporting § 200.303

Reference Number: 2025-013 Prior Year Finding: No Federal Agency: U.S. Department of the Treasury State Agency: Public Service Department Department of Libraries Federal Program: COVID-19 – Coronavirus Capital Projects Fund Assistance Listing Number: 21.029 Award Number and Year: CPFFN0202 (2/4/2022...

Reference Number: 2025-013 Prior Year Finding: No Federal Agency: U.S. Department of the Treasury State Agency: Public Service Department Department of Libraries Federal Program: COVID-19 – Coronavirus Capital Projects Fund Assistance Listing Number: 21.029 Award Number and Year: CPFFN0202 (2/4/2022 – 12/31/2026) Compliance Requirement: Reporting – Federal Funding Accountability and Transparency Act (FFATA) Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Recommendation: We recommend the Departments’ review their procedures and internal controls to ensure that subawards are reported timely to SAM.gov in accordance with FFATA requirements. Views of responsible officials: Management agrees with the finding. Corrective Action Plan: The Departments of Public Service and Libraries, reporting obligations for Federal Funding Accountability and Transparency Act Subaward in SAM.gov will occur on a timely basis. Training for these responsibilities is provided for new employees and ad hoc as the system updates and as SAM.gov releases periodic training. A procedural job aid is in place with detailed instructions for staff who are responsible for the inputs. Compliance will be reported regularly to internal leadership. Written procedures for regular reporting to management about FFATA reporting will be established by the grants and contracts staff. A quarterly meeting will be established between the Departments to discuss and ensure that the reporting obligations have been met. Scheduled Completion Date of Correction Action Plan: Quarterly meeting established. March 31, 2026 Procedural job aid created March 31, 2026 Training provided to employees June 30, 2026 Management monitoring process established June 30, 2026 Contacts for Corrective Action Plan: Brittney Wilson, Deputy Commissioner, brittney.wilson@vermont.gov Tracy Collier, Administrative Services Director, tracy.collier@vermont.gov

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