Findings Citing § 200.502

Criteria: In accordance with 2 CFR section 200.510(b) (Uniform Guidance), “the auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements. The schedule must include the total Federal awards expended as determined in accordance with § 200.502.” Condition: The College did not have controls in place to ensure the Schedule of Expenditures of Federal Awards (SEFA) was accurately reconciled with the general ledger. As a result, there were discrepancies between the amounts reported on the SEFA and the actual expenditures in the College’s accounting records. Cause: The College does not have a process in place to reconcile the SEFA to the general ledger to ensure accurate records. Expense entries (expenditures) are posted by several people across the campus when funds are spent. Revenue entries (drawdowns) are posted by the business office, however there is no process to ensure these drawdowns are the same as the amounts expended. Revenue is also not deferred to the appropriate period when necessary as part of a SEFA reconciliation process. Effect: Without proper reconciliation procedures, there is an increased risk that the SEFA may be materially misstated. The current year SEFA contained net adjustments of $209,443 made by the auditors to reconcile to the general ledger and award letters. Repeat Finding from Prior Year: Yes Recommendation: We recommend management establish an informal procedure to reconcile grant funds received with funds expended on a regular basis. We also recommend management implement a formal procedure to reconcile the SEFA with the general ledger at year end. Views of Responsible Officials: The Comptroller will reconcile this report on a monthly basis making sure that all grants and other Federal / State expenditures are on the SEFA and that the two numbers reconcile with the general ledger. This will be kept in a notebook and the calendar kept in the Comptroller’s desk. The Comptroller will also create a folder in the business office folder on the server and input the current SEFA in this folder and show any discrepancies on a monthly basis and every time this report is run for drawdowns. This process will start immediately. The Comptroller will also make sure at year end that all items are on this report and they have been reconciled with the general ledger. This process will also be in the notebook and calendar within the desk of the Comptroller

Federal Agency: U.S. Department of Homeland Security Pass Through Entity: Kansas Division of Emergency Management Program Name: Building Resilient Infrastructure and Communities Assistance Listing Number: 97.047 Award Period: June 30, 2025 Criteria: According to 2 CFR 200, Subpart F, the District is required to prepare a schedule of federal expenditures, which must include the total federal awards expended as determined in accordance with §200.502. An effective internal control system exists if controls are effective in preventing or detecting material misstatements in the preparation of the schedule of federal expenditures of federal awards (the schedule). It provides reasonable assurance for the reliability of financial information and compliance with laws and regulations. Condition: We have determined that there was an inadequate design of internal control over the preparation of the schedule during the fiscal year ended June 30, 2025. The current financial reporting process does not ensure accuracy and completeness in the preparation of the schedule by the District, as required by Uniform Guidance. Cause: The District’s staff lacked the knowledge to ensure the schedule is complete and accurate. Effect: The District did not prepare the schedule in conformity with Uniform Guidance. This increases the likelihood of a material misstatement and noncompliance with laws and regulations. Context: The District was unable to provide a schedule of Expenditures of Federal Awards that was materially correct. The District is not typically subject to a Single Audit. Recommendation: We recommend the Board of Education and management review the financial reporting process. Once this review is complete, the District should then perform a risk assessment to determine the best way to implement appropriate internal controls over financial reporting to ensure that the District prepares the schedule conformity with Uniform Guidance. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and plans to develop proper written policies and procedures for the internal control over compliance to ensure accuracy and completeness in the District’s preparation of the schedule as required by Uniform Guidance.

Criteria: According to 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Generally, the activity related to the federal award pertains to events that require the nonfederal entity to comply with federal statutes, regulations, and the terms and conditions of Federal awards, such as expenditure/expense transactions associated with grants. For FEMA grants, non-federal entities must record expenditures on the SEFA when (1) FEMA has approved the nonfederal entity’s project, and (2) the non-federal entity has incurred the eligible expenditures. FEMA’s approval of a subaward is indicated when FEMA obligates the federal share of the eligible project cost to the recipient Federal awards expended in years subsequent to the fiscal year in which the project is approved are to be recorded on the non-federal entity’s SEFA in those subsequent years. Condition: The Authority's expenditures relating to FEMA awards obligated during the current fiscal year did not include expenditures incurred during previous fiscal years. Effect: The Authority's expenditures were understated which could have impaired proper major program determination for testing and caused a misstatement of the SEFA. Cause: The Authority experienced turnover in its grants administrator position, which led to a loss of institutional knowledge and reduced continuity in its grant management processes. As a result, the Authority faced increased difficulty complying with the unique reporting requirements applicable to FEMA awards. Recommendation: We recommend that the Authority enhance its grants administration processes by establishing formal, written procedures that address the unique reporting requirements of FEMA awards. The Authority should ensure that staff responsible for grant management receive sufficient training and that cross-training is in place to mitigate the effects of future turnover. These steps will help preserve institutional knowledge, promote consistent application of required procedures, and improve compliance with FEMA reporting standards. Views of Responsible Officials: Management agrees with the finding and will implement controls to ensure all awards are included, as well as correct going forward. See Management’s Corrective Action Plan for further details.

Assistance Listing Number, Federal Agency, and Program Name - N/A, Schedule of Expenditures of Federal Awards (SEFA) Reporting Federal Award Identification Number and Year - N/A Pass through Entity - N/A Finding Type - Significant deficiency Repeat Finding - No Criteria - Uniform Guidance (2 CFR 200.510(b)) requires a schedule of expenditures of federal awards (SEFA) that must provide total federal awards expended for the period covered by the auditee's financial statements. Federal awards expended in accordance with §200.502 should be based on when the underlying activity related to the federal award occurs. Condition - During our review of the schedule of expenditures of federal awards, we noted that certain federal program expenditures were included in the SEFA for the fiscal year ended June 30, 2025 even though the underlying activity occurred in 2024. The College did not have adequate controls in place to ensure the SEFA was prepared to include appropriate expenditures for the Economic Development Cluster in the proper period. Questioned Costs - N/A Identification of How Questioned Costs Were Computed - N/A Context - During our review of the College's SEFA, we noted expenditures of $318,814 that were improperly included within the Economic Development Cluster in 2025. Based on review of underlying expenditures on vendor pay applications, expenditures should have been included on the SEFA in 2024. Cause and Effect - The College did not have adequate processes and internal control structure in place to ensure SEFA expenditures were recorded in the appropriate period. As a result, the SEFA is overstated by $318,814 in 2025. If the SEFA does not accurately reflect federal expenditures for the audit period, this could lead to misinterpretation of compliance requirements and inaccurate reporting to federal agencies. Recommendation - We recommend management implement procedures to ensure the SEFA preparation is based on the timing of the underlying activity rather than payment dates. Views of Responsible Officials and Planned Corrective Actions - The College will establish the proper controls to ensure that the SEFA is prepared based on the timing of the underlying activity rather than payment dates.

U.S. Department of Agriculture/Passed-through Texas Department of Agriculture Food Distribution Cluster Federal Assistance Listing Number 10.565 – Commodity Supplemental Food Program (Food Commodities), 10.569 – Emergency Food Assistance Program (Food Commodities) Award Number: 01576 Criteria or Specific Requirement: Special Test and Provisions – Accountability for USDA Foods – Non-cash assistance must be valued at USDA‑approved valuation methods which include cost‑per‑pound, WBCSXI catalog price, or rolling average (7 CFR §250.58(e) and U.G. §200.502(a)). Condition: USDA donated foods are recorded in the accounting system at standard cost based on the first product received, rather than using an approved valuation method (Fair Market Value at receipt or USDA‑determined values such as cost‑per‑pound, WBCSXI catalog price, or rolling average per 7 CFR §250.58(e) and U.G. §200.502(a)). The entity has not formally selected or documented an approved method. The Food Bank does not maintain written procedures for conducting the required annual physical inventory and reconciliation to USDA Foods records. Procedures are communicated verbally before the count. Cause: The organization had not fully implemented USDA valuation requirements due to the absence of a documented policy. Inventory practices developed informally over time, and standard operating procedures were never formalized or approved. Effect or Potential Effect: Potential misstatement of USDA Foods value for Schedule of Expenditures of Federal Awards and inconsistent valuation across periods. Inventory risk increased likelihood of count errors, timing differences, or unexplained adjustments; exposure to liability for unreconciled differences. Questioned Costs: None Context: The methodology used to value food commodities was not a USDA‑approved valuation method. Repeat Finding: No Recommendation: Select and document an approved USDA valuation method and apply it consistently. Develop and implement formal written standard operating procedures for annual physical inventory and reconciliation, including: 1. Pre‑count preparation and cut‑off 2. Tag control and independent recounts 3. Reconciliation steps and documentation of adjustments, and 4. Record retention per 7 CFR §250.19 Views of Responsible Officials and Corrective Action: Management concurs with the finding and recommendation. See further information on the corrective action plan provided by management.

Assistance Listing Number, Federal Agency, and Program Name - ALN 66.202, U.S. Environmental Protection Agency - Congressionally Mandated Projects Federal Award Identification Number and Year - CG-00E03697-0, 2024 Pass through Entity - N/A Finding Type - Material weakness Repeat Finding - No Criteria - Per 2 CFR 200.510(b), the auditee must prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements, which must include the total federal awards expended, as determined in accordance with 2 CFR 200.502. While not required, the auditee may choose to provide information requested by federal awarding agencies and pass through entities to make the schedule easier to use. Condition - Controls were not in place to ensure that the schedule of expenditures of federal awards (SEFA) was complete and accurate. Questioned Costs - None If Questioned Costs are Not Determinable, Description of Why Known Questioned Costs Were Undetermined or Otherwise Could Not Be Reported - N/A Identification of How Questioned Costs Were Computed - N/A Context - In fiscal year 2025, the Village expended approximately $935,000 of federal funding from various federal agencies. The Village accumulates the financial data and other required information to complete the SEFA. Expenditures under grant ALN 66.202, Congressionally Mandated Projects, were originally overstated by $40,088 due to duplication of costs. No controls were in place to identify incompleteness or inaccuracy of the SEFA. Cause and Effect - No review or other control was in place to ensure the SEFA was complete and accurate. As a result, ALN 66.202, Congressionally Mandated Projects, expenditures were overstated by $40,088. This error has been corrected on the SEFA as of June 30, 2025. Recommendation - The Village should implement controls to ensure the SEFA is reviewed for completeness and accuracy. Views of Responsible Officials and Planned Corrective Actions - The Village has hired an outside contractor to assist with review of audit documents.

Compliance Requirement: Other – Inaccurate reporting of the Schedule of Expenditures of Federal Awards Campus: Sacramento, Sonoma Cluster name/program: Supplemental Nutrition Assistance Program Cluster and Reserach and Development Programs Cluster Listing Numbers: 10.561, 47.076, and 84.411 Federal Agency: U.S. Department of Agriculture National Science Foundation U.S. Department of Education Passed through Entity: 10.561 - State of California Department of Social Services Federal Award Identification Numbers: 10.561: 21-3068 and 24-3069, 47.076: 1953472, and 84.411: S411B230042 Award Year: July 1, 2024 – June 30, 2025 Criteria: According to 2 CFR 200.502(a), the determination when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity related to the Federal award pertains to events that require the non-Federal entity to comply with Federal statutes, regulations, and the terms and conditions of Federal awards, such as: (1) Expenditure/expense transactions associated with grants, cooperative agreements, cost-reimbursement contracts under the FAR, compacts with Indian Tribes, and direct appropriations; (2) The disbursement of funds to subrecipients; Additionally, 2 CFR 200.303 requires non-Federal entities receiving Federal awards to establish and maintain internal controls designated to reasonably ensure compliance with Federal laws and regulations. Effective internal controls should include procedures to ensure federal expenditures are accurately and completely reported on the Schedule of Expenditures of Federal Awards (SEFA). Condition and Context: ALN 10.561: We noted the Sacramento campus incorrectly recorded $712,979 of subrecipient expenditures which were not disbursed during FY2025. This resulted in an overstatement of expenditures on the FY2025 SEFA which management adjusted the SEFA accordingly. ALN 10.561: During our testing of nonpayroll expenditures for the Sacramento campus, we noted $25,605 related to a period outside of FY2025. The total out of period expense including the indirect cost was $32,006. This resulted in an overstatement of expenditures on the SEFA for FY2025. ALN 84.411: During our testing of indirect cost for the Sonoma campus, we noted $29,495 of expenditures related to a period outside of FY2025 resulting from management correcting the indirect cost rate for a grant that began in the prior year and recording all of the adjustment in FY2025. This resulted in an overstatement of expenditures on the FY2025 SEFA. ALN 47.076: During our payroll testing for the Sonoma campus, we noted $13,980 of expenditures related to a period outside of FY2025. The total out of period expense including the indirect cost was $21,110. This results in an overstatement of FY2025 Schedule of Expenditures of Federal Awards (SEFA). Cause and Effect: While the University’s policy is to record subrecipient expenditures on the SEFA upon the disbursement of funds to recipients, the Sacramento campus’ SEFA preparation process did not adequately consider whether amounts recorded in the SEFA had been disbursed to the subrecipient. At the Sonoma campus, the error was the results of an indirect cost rate being utilized from a previous grant versus the updated rate in the new grant. There was also a lack of internal controls over the accruals of summer payroll impacting federal awards. Failure to establish effective internal controls regarding financial reporting for the preparation of the SEFA resulted in an overstatement of expenditures. Questioned Costs: Not applicable Statistical Sampling: Not applicable Repeat Finding: Yes for 10.561 and No for 47.076 and 84.411 Recommendation: We recommend the University implement a system of internal control that is designed and operating effectively to ensure the SEFA is complete and accurate. Views of Responsible Officials: The University concurs with the recommendation. The University will review and enhance its procedures and internal controls to ensure the SEFA is complete and accurate.

Assistance Listing Number, Federal Agency, and Program Name - ALN 20.205, Department of Transportation, Highway Planning and Construction - ALN 21.027, Department of the Treasury, COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year - ALN 20.205: SHO M455- 136 (2024), STU M455-129 (2024), STU 2873-215 (2024), CRP M455-164 (2024), SHO M455-137 (2024), SHO M455-135 (2024), and STU M455-125 (2024) - ALN 21.027: N/A Pass-through Entity - ALN 20.205: Colorado Department of Transportation - ALN 21.027: N/A Finding Type - Material weakness Repeat Finding - Yes 2023-003 Criteria - According to 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Generally, the activity pertains to the events that require the nonfederal entity to comply with federal status, regulations, and the terms and conditions of federal awards, such as expenditure/expense transactions associated with awards including grants. Condition - The fiscal year 2024 schedule of expenditures of federal awards (SEFA) that was initially provided to the auditors was incorrect because it included expenditures related to fiscal years 2023 and 2025. Questioned Costs - N/A If Questioned Costs are not Determinable, Description of why Known Questioned Costs Were Undetermined or Otherwise Could not be Reported - N/A Identification of How Questioned Costs Were Computed - N/A Context - Within Highway Planning and Construction, the expenditures reported on the initial SEFA included $142,724 that related to expenditures incurred in fiscal year 2023. There was also $16,128 that related to expenditures incurred in fiscal year 2024 that was not reported on the initial SEFA. Within Coronavirus State and Local Fiscal Recovery Funds, the expenditures reported on the initial SEFA included $15,921 that related to expenditures incurred in fiscal year 2023 and $99,200 that related to expenditures incurred in fiscal year 2025. Cause and Effect - The City reported federal expenditures in congruence with requests for reimbursement from the federal agency, rather than when the expenditures was incurred. Recommendation - The City should implement controls to ensure that the SEFA is prepared in accordance with applicable rules and regulations. Views of Responsible Officials and Corrective Action Plan - The City of Fort Collins, Colorado has determined that two separate and identifiable root causes led to the inclusion of expenditures from fiscal years 2023 and 2025 in the initial fiscal year 2024 SEFA. 1. Improper Accrual of Prepayments: A small number of transactions involving partial prepayments were not properly accrued in accordance with accounting standards. To address this issue, the City will implement a formal review process where all reimbursement requests are reviewed by the grant accountant prior to submission. This review will include a targeted examination of expenditure listings to identify and ensure appropriate treatment of any transactions requiring accrual as prepayments. 2. Inconsistencies Between Reimbursement Packets and the General Ledger: For the Highway Planning and Construction Cluster, the SEFA preparation process previously relied on reimbursement request packets compiled by departmental staff. In some cases, these packets did not accurately reflect the timing of expenditures recorded in the general ledger. To enhance accuracy, the City will implement a reconciliation procedure requiring the grant accountant to cross-reference reimbursement packet data with the general ledger during SEFA preparation. This step will help ensure that all expenditures are properly reported in the appropriate fiscal year. The City is confident that these corrective actions will strengthen internal controls over SEFA preparation and prevent recurrence of similar issues in future reporting periods.

Assistance Listing Number, Federal Agency, and Program Name - ALN 20.205, Department of Transportation, Highway Planning and Construction - ALN 21.027, Department of the Treasury, COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year - ALN 20.205: SHO M455- 136 (2024), STU M455-129 (2024), STU 2873-215 (2024), CRP M455-164 (2024), SHO M455-137 (2024), SHO M455-135 (2024), and STU M455-125 (2024) - ALN 21.027: N/A Pass-through Entity - ALN 20.205: Colorado Department of Transportation - ALN 21.027: N/A Finding Type - Material weakness Repeat Finding - Yes 2023-003 Criteria - According to 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Generally, the activity pertains to the events that require the nonfederal entity to comply with federal status, regulations, and the terms and conditions of federal awards, such as expenditure/expense transactions associated with awards including grants. Condition - The fiscal year 2024 schedule of expenditures of federal awards (SEFA) that was initially provided to the auditors was incorrect because it included expenditures related to fiscal years 2023 and 2025. Questioned Costs - N/A If Questioned Costs are not Determinable, Description of why Known Questioned Costs Were Undetermined or Otherwise Could not be Reported - N/A Identification of How Questioned Costs Were Computed - N/A Context - Within Highway Planning and Construction, the expenditures reported on the initial SEFA included $142,724 that related to expenditures incurred in fiscal year 2023. There was also $16,128 that related to expenditures incurred in fiscal year 2024 that was not reported on the initial SEFA. Within Coronavirus State and Local Fiscal Recovery Funds, the expenditures reported on the initial SEFA included $15,921 that related to expenditures incurred in fiscal year 2023 and $99,200 that related to expenditures incurred in fiscal year 2025. Cause and Effect - The City reported federal expenditures in congruence with requests for reimbursement from the federal agency, rather than when the expenditures was incurred. Recommendation - The City should implement controls to ensure that the SEFA is prepared in accordance with applicable rules and regulations. Views of Responsible Officials and Corrective Action Plan - The City of Fort Collins, Colorado has determined that two separate and identifiable root causes led to the inclusion of expenditures from fiscal years 2023 and 2025 in the initial fiscal year 2024 SEFA. 1. Improper Accrual of Prepayments: A small number of transactions involving partial prepayments were not properly accrued in accordance with accounting standards. To address this issue, the City will implement a formal review process where all reimbursement requests are reviewed by the grant accountant prior to submission. This review will include a targeted examination of expenditure listings to identify and ensure appropriate treatment of any transactions requiring accrual as prepayments. 2. Inconsistencies Between Reimbursement Packets and the General Ledger: For the Highway Planning and Construction Cluster, the SEFA preparation process previously relied on reimbursement request packets compiled by departmental staff. In some cases, these packets did not accurately reflect the timing of expenditures recorded in the general ledger. To enhance accuracy, the City will implement a reconciliation procedure requiring the grant accountant to cross-reference reimbursement packet data with the general ledger during SEFA preparation. This step will help ensure that all expenditures are properly reported in the appropriate fiscal year. The City is confident that these corrective actions will strengthen internal controls over SEFA preparation and prevent recurrence of similar issues in future reporting periods.

Assistance Listing Number, Federal Agency, and Program Name - ALN 20.205, Department of Transportation, Highway Planning and Construction - ALN 21.027, Department of the Treasury, COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year - ALN 20.205: SHO M455- 136 (2024), STU M455-129 (2024), STU 2873-215 (2024), CRP M455-164 (2024), SHO M455-137 (2024), SHO M455-135 (2024), and STU M455-125 (2024) - ALN 21.027: N/A Pass-through Entity - ALN 20.205: Colorado Department of Transportation - ALN 21.027: N/A Finding Type - Material weakness Repeat Finding - Yes 2023-003 Criteria - According to 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Generally, the activity pertains to the events that require the nonfederal entity to comply with federal status, regulations, and the terms and conditions of federal awards, such as expenditure/expense transactions associated with awards including grants. Condition - The fiscal year 2024 schedule of expenditures of federal awards (SEFA) that was initially provided to the auditors was incorrect because it included expenditures related to fiscal years 2023 and 2025. Questioned Costs - N/A If Questioned Costs are not Determinable, Description of why Known Questioned Costs Were Undetermined or Otherwise Could not be Reported - N/A Identification of How Questioned Costs Were Computed - N/A Context - Within Highway Planning and Construction, the expenditures reported on the initial SEFA included $142,724 that related to expenditures incurred in fiscal year 2023. There was also $16,128 that related to expenditures incurred in fiscal year 2024 that was not reported on the initial SEFA. Within Coronavirus State and Local Fiscal Recovery Funds, the expenditures reported on the initial SEFA included $15,921 that related to expenditures incurred in fiscal year 2023 and $99,200 that related to expenditures incurred in fiscal year 2025. Cause and Effect - The City reported federal expenditures in congruence with requests for reimbursement from the federal agency, rather than when the expenditures was incurred. Recommendation - The City should implement controls to ensure that the SEFA is prepared in accordance with applicable rules and regulations. Views of Responsible Officials and Corrective Action Plan - The City of Fort Collins, Colorado has determined that two separate and identifiable root causes led to the inclusion of expenditures from fiscal years 2023 and 2025 in the initial fiscal year 2024 SEFA. 1. Improper Accrual of Prepayments: A small number of transactions involving partial prepayments were not properly accrued in accordance with accounting standards. To address this issue, the City will implement a formal review process where all reimbursement requests are reviewed by the grant accountant prior to submission. This review will include a targeted examination of expenditure listings to identify and ensure appropriate treatment of any transactions requiring accrual as prepayments. 2. Inconsistencies Between Reimbursement Packets and the General Ledger: For the Highway Planning and Construction Cluster, the SEFA preparation process previously relied on reimbursement request packets compiled by departmental staff. In some cases, these packets did not accurately reflect the timing of expenditures recorded in the general ledger. To enhance accuracy, the City will implement a reconciliation procedure requiring the grant accountant to cross-reference reimbursement packet data with the general ledger during SEFA preparation. This step will help ensure that all expenditures are properly reported in the appropriate fiscal year. The City is confident that these corrective actions will strengthen internal controls over SEFA preparation and prevent recurrence of similar issues in future reporting periods.

Assistance Listing Number, Federal Agency, and Program Name - ALN 20.205, Department of Transportation, Highway Planning and Construction - ALN 21.027, Department of the Treasury, COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year - ALN 20.205: SHO M455- 136 (2024), STU M455-129 (2024), STU 2873-215 (2024), CRP M455-164 (2024), SHO M455-137 (2024), SHO M455-135 (2024), and STU M455-125 (2024) - ALN 21.027: N/A Pass-through Entity - ALN 20.205: Colorado Department of Transportation - ALN 21.027: N/A Finding Type - Material weakness Repeat Finding - Yes 2023-003 Criteria - According to 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Generally, the activity pertains to the events that require the nonfederal entity to comply with federal status, regulations, and the terms and conditions of federal awards, such as expenditure/expense transactions associated with awards including grants. Condition - The fiscal year 2024 schedule of expenditures of federal awards (SEFA) that was initially provided to the auditors was incorrect because it included expenditures related to fiscal years 2023 and 2025. Questioned Costs - N/A If Questioned Costs are not Determinable, Description of why Known Questioned Costs Were Undetermined or Otherwise Could not be Reported - N/A Identification of How Questioned Costs Were Computed - N/A Context - Within Highway Planning and Construction, the expenditures reported on the initial SEFA included $142,724 that related to expenditures incurred in fiscal year 2023. There was also $16,128 that related to expenditures incurred in fiscal year 2024 that was not reported on the initial SEFA. Within Coronavirus State and Local Fiscal Recovery Funds, the expenditures reported on the initial SEFA included $15,921 that related to expenditures incurred in fiscal year 2023 and $99,200 that related to expenditures incurred in fiscal year 2025. Cause and Effect - The City reported federal expenditures in congruence with requests for reimbursement from the federal agency, rather than when the expenditures was incurred. Recommendation - The City should implement controls to ensure that the SEFA is prepared in accordance with applicable rules and regulations. Views of Responsible Officials and Corrective Action Plan - The City of Fort Collins, Colorado has determined that two separate and identifiable root causes led to the inclusion of expenditures from fiscal years 2023 and 2025 in the initial fiscal year 2024 SEFA. 1. Improper Accrual of Prepayments: A small number of transactions involving partial prepayments were not properly accrued in accordance with accounting standards. To address this issue, the City will implement a formal review process where all reimbursement requests are reviewed by the grant accountant prior to submission. This review will include a targeted examination of expenditure listings to identify and ensure appropriate treatment of any transactions requiring accrual as prepayments. 2. Inconsistencies Between Reimbursement Packets and the General Ledger: For the Highway Planning and Construction Cluster, the SEFA preparation process previously relied on reimbursement request packets compiled by departmental staff. In some cases, these packets did not accurately reflect the timing of expenditures recorded in the general ledger. To enhance accuracy, the City will implement a reconciliation procedure requiring the grant accountant to cross-reference reimbursement packet data with the general ledger during SEFA preparation. This step will help ensure that all expenditures are properly reported in the appropriate fiscal year. The City is confident that these corrective actions will strengthen internal controls over SEFA preparation and prevent recurrence of similar issues in future reporting periods.

Assistance Listing Number, Federal Agency, and Program Name - ALN 20.205, Department of Transportation, Highway Planning and Construction - ALN 21.027, Department of the Treasury, COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year - ALN 20.205: SHO M455- 136 (2024), STU M455-129 (2024), STU 2873-215 (2024), CRP M455-164 (2024), SHO M455-137 (2024), SHO M455-135 (2024), and STU M455-125 (2024) - ALN 21.027: N/A Pass-through Entity - ALN 20.205: Colorado Department of Transportation - ALN 21.027: N/A Finding Type - Material weakness Repeat Finding - Yes 2023-003 Criteria - According to 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Generally, the activity pertains to the events that require the nonfederal entity to comply with federal status, regulations, and the terms and conditions of federal awards, such as expenditure/expense transactions associated with awards including grants. Condition - The fiscal year 2024 schedule of expenditures of federal awards (SEFA) that was initially provided to the auditors was incorrect because it included expenditures related to fiscal years 2023 and 2025. Questioned Costs - N/A If Questioned Costs are not Determinable, Description of why Known Questioned Costs Were Undetermined or Otherwise Could not be Reported - N/A Identification of How Questioned Costs Were Computed - N/A Context - Within Highway Planning and Construction, the expenditures reported on the initial SEFA included $142,724 that related to expenditures incurred in fiscal year 2023. There was also $16,128 that related to expenditures incurred in fiscal year 2024 that was not reported on the initial SEFA. Within Coronavirus State and Local Fiscal Recovery Funds, the expenditures reported on the initial SEFA included $15,921 that related to expenditures incurred in fiscal year 2023 and $99,200 that related to expenditures incurred in fiscal year 2025. Cause and Effect - The City reported federal expenditures in congruence with requests for reimbursement from the federal agency, rather than when the expenditures was incurred. Recommendation - The City should implement controls to ensure that the SEFA is prepared in accordance with applicable rules and regulations. Views of Responsible Officials and Corrective Action Plan - The City of Fort Collins, Colorado has determined that two separate and identifiable root causes led to the inclusion of expenditures from fiscal years 2023 and 2025 in the initial fiscal year 2024 SEFA. 1. Improper Accrual of Prepayments: A small number of transactions involving partial prepayments were not properly accrued in accordance with accounting standards. To address this issue, the City will implement a formal review process where all reimbursement requests are reviewed by the grant accountant prior to submission. This review will include a targeted examination of expenditure listings to identify and ensure appropriate treatment of any transactions requiring accrual as prepayments. 2. Inconsistencies Between Reimbursement Packets and the General Ledger: For the Highway Planning and Construction Cluster, the SEFA preparation process previously relied on reimbursement request packets compiled by departmental staff. In some cases, these packets did not accurately reflect the timing of expenditures recorded in the general ledger. To enhance accuracy, the City will implement a reconciliation procedure requiring the grant accountant to cross-reference reimbursement packet data with the general ledger during SEFA preparation. This step will help ensure that all expenditures are properly reported in the appropriate fiscal year. The City is confident that these corrective actions will strengthen internal controls over SEFA preparation and prevent recurrence of similar issues in future reporting periods.

Assistance Listing Number, Federal Agency, and Program Name - ALN 20.205, Department of Transportation, Highway Planning and Construction - ALN 21.027, Department of the Treasury, COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year - ALN 20.205: SHO M455- 136 (2024), STU M455-129 (2024), STU 2873-215 (2024), CRP M455-164 (2024), SHO M455-137 (2024), SHO M455-135 (2024), and STU M455-125 (2024) - ALN 21.027: N/A Pass-through Entity - ALN 20.205: Colorado Department of Transportation - ALN 21.027: N/A Finding Type - Material weakness Repeat Finding - Yes 2023-003 Criteria - According to 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Generally, the activity pertains to the events that require the nonfederal entity to comply with federal status, regulations, and the terms and conditions of federal awards, such as expenditure/expense transactions associated with awards including grants. Condition - The fiscal year 2024 schedule of expenditures of federal awards (SEFA) that was initially provided to the auditors was incorrect because it included expenditures related to fiscal years 2023 and 2025. Questioned Costs - N/A If Questioned Costs are not Determinable, Description of why Known Questioned Costs Were Undetermined or Otherwise Could not be Reported - N/A Identification of How Questioned Costs Were Computed - N/A Context - Within Highway Planning and Construction, the expenditures reported on the initial SEFA included $142,724 that related to expenditures incurred in fiscal year 2023. There was also $16,128 that related to expenditures incurred in fiscal year 2024 that was not reported on the initial SEFA. Within Coronavirus State and Local Fiscal Recovery Funds, the expenditures reported on the initial SEFA included $15,921 that related to expenditures incurred in fiscal year 2023 and $99,200 that related to expenditures incurred in fiscal year 2025. Cause and Effect - The City reported federal expenditures in congruence with requests for reimbursement from the federal agency, rather than when the expenditures was incurred. Recommendation - The City should implement controls to ensure that the SEFA is prepared in accordance with applicable rules and regulations. Views of Responsible Officials and Corrective Action Plan - The City of Fort Collins, Colorado has determined that two separate and identifiable root causes led to the inclusion of expenditures from fiscal years 2023 and 2025 in the initial fiscal year 2024 SEFA. 1. Improper Accrual of Prepayments: A small number of transactions involving partial prepayments were not properly accrued in accordance with accounting standards. To address this issue, the City will implement a formal review process where all reimbursement requests are reviewed by the grant accountant prior to submission. This review will include a targeted examination of expenditure listings to identify and ensure appropriate treatment of any transactions requiring accrual as prepayments. 2. Inconsistencies Between Reimbursement Packets and the General Ledger: For the Highway Planning and Construction Cluster, the SEFA preparation process previously relied on reimbursement request packets compiled by departmental staff. In some cases, these packets did not accurately reflect the timing of expenditures recorded in the general ledger. To enhance accuracy, the City will implement a reconciliation procedure requiring the grant accountant to cross-reference reimbursement packet data with the general ledger during SEFA preparation. This step will help ensure that all expenditures are properly reported in the appropriate fiscal year. The City is confident that these corrective actions will strengthen internal controls over SEFA preparation and prevent recurrence of similar issues in future reporting periods.

Assistance Listing, Federal Agency, and Program Name - 20.205, U.S. Department of Transportation, Highway Planning and Construction; 15.916, U.S. Department of the Interior, Outdoor Recreation, Acquisition, Development and Planning Federal Award Identification Number and Year - FAINs not available Pass through Entity - ALN 20.205 Colorado Department of Transportiation; ALN 15.916 Colorado Parks and Wildlife/Land and Water Conservation Fund Finding Type - Material weakness Repeat Finding - No Criteria - The Single Audit Act and Uniform Guidance require a nonfederal entity that expends $750,000 or more of federal awards in a fiscal year to have a single or program specific audit. 2 CFR §200.508 (b) indicates that the auditee must prepare financial statements, including the schedule of expenditures of federal awards, in accordance with 2 CFR §200.510. Additionally, 2 CFR §200.502 describes the basis for determining the timing of when federal awards are deemed expended and, therefore, reportable on the schedule. Condition - The schedule of expenditures of federal awards (the "SEFA") was not accurate. Questioned Costs - None If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - During the fiscal year ended December 31, 2024, the City expended approximately $22,617,000 of federal funding. The initial draft of the SEFA included the following inaccuracies: ALN 20.205 The expenditures reported on the SEFA were overstated by $19,522 for one award and understated by $145,869 for another award. ALN 15.916 The expenditures reported on the SEFA were overstated by $45,915 The errors noted above have been corrected on the SEFA as of December 31, 2024. Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate for the fiscal period under audit. The errors resulted in the understatement of federal expenditures. Recommendation - We recommend the City implement a process to ensure that the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions - The City accepts this finding. As part of the revision to the City’s grant process and procedures, we will enhance our master grant tracking spreadsheet to ensure grant expenditures are reported correctly. We will collaborate with city departments to ensure costs are recorded correctly. See the corrective action plan.

Assistance Listing, Federal Agency, and Program Name - 20.205, U.S. Department of Transportation, Highway Planning and Construction; 15.916, U.S. Department of the Interior, Outdoor Recreation, Acquisition, Development and Planning Federal Award Identification Number and Year - FAINs not available Pass through Entity - ALN 20.205 Colorado Department of Transportiation; ALN 15.916 Colorado Parks and Wildlife/Land and Water Conservation Fund Finding Type - Material weakness Repeat Finding - No Criteria - The Single Audit Act and Uniform Guidance require a nonfederal entity that expends $750,000 or more of federal awards in a fiscal year to have a single or program specific audit. 2 CFR §200.508 (b) indicates that the auditee must prepare financial statements, including the schedule of expenditures of federal awards, in accordance with 2 CFR §200.510. Additionally, 2 CFR §200.502 describes the basis for determining the timing of when federal awards are deemed expended and, therefore, reportable on the schedule. Condition - The schedule of expenditures of federal awards (the "SEFA") was not accurate. Questioned Costs - None If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - During the fiscal year ended December 31, 2024, the City expended approximately $22,617,000 of federal funding. The initial draft of the SEFA included the following inaccuracies: ALN 20.205 The expenditures reported on the SEFA were overstated by $19,522 for one award and understated by $145,869 for another award. ALN 15.916 The expenditures reported on the SEFA were overstated by $45,915 The errors noted above have been corrected on the SEFA as of December 31, 2024. Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate for the fiscal period under audit. The errors resulted in the understatement of federal expenditures. Recommendation - We recommend the City implement a process to ensure that the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions - The City accepts this finding. As part of the revision to the City’s grant process and procedures, we will enhance our master grant tracking spreadsheet to ensure grant expenditures are reported correctly. We will collaborate with city departments to ensure costs are recorded correctly. See the corrective action plan.

Finding 2024-001: Reportable Finding Considered a Significant Deficiency – Inclusion of Unallowable Costs in the SEFA Program Name: STEM Education Assistance Listing #: 47.076 Program Year: 2024 Federal Awarding Agency: National Science Foundation Compliance Requirement: SEFA Preparation Criteria: According to 2 CFR Part 200, Subpart F, §200.510(b), the auditee must prepare a SEFA for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502. The SEFA must also include the CFDA number, the name of the Federal program, and the total amount expended. Condition: During our allowable cost testing, four exceptions were noted out of 15 selections. The first exception involved a transaction that included an estimated expense exceeding the actual cost incurred and falling outside the grant’s period of allowability. The other 3 exceptions pertained to an expense related to a future fiscal year, which had not yet been incurred at the time of recognition and was outside the grant’s period of performance. The client did not request reimbursement for these expenditures and subsequently removed them from the general ledger in 2024. However, the removal of these expenses was not properly reflected on the SEFA schedule. Cause: The improper preparation of the SEFA schedule was due to inadequate internal controls over financial reporting and lack of proper training for staff responsible for reporting the SEFA expenditures. Additionally, there was insufficient review and oversight of the SEFA preparation process. Effect: A total of $19,374 of expenses were incorrectly included in the SEFA. Failure to remove these expenses from the SEFA misrepresented the total amount of federal assistance expanded and may impair the usefulness of the SEFA for the oversight federal agency. Questioned Costs: None. Repeat finding: This is not a repeat finding. Recommendation: We recommend the Organization revise its SEFA preparation procedures to ensure that only allowable and reimbursable expenditures of federal awards are reported. Management should provide additional training to staff responsible for SEFA preparation and implement a formal review process to verify the accuracy of SEFA amounts. Views of Responsible Officials and Planned Corrective Action (unaudited): See Corrective Action Plan.

Finding 2024-001: Reportable Finding Considered a Significant Deficiency – Inclusion of Unallowable Costs in the SEFA Program Name: STEM Education Assistance Listing #: 47.076 Program Year: 2024 Federal Awarding Agency: National Science Foundation Compliance Requirement: SEFA Preparation Criteria: According to 2 CFR Part 200, Subpart F, §200.510(b), the auditee must prepare a SEFA for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502. The SEFA must also include the CFDA number, the name of the Federal program, and the total amount expended. Condition: During our allowable cost testing, four exceptions were noted out of 15 selections. The first exception involved a transaction that included an estimated expense exceeding the actual cost incurred and falling outside the grant’s period of allowability. The other 3 exceptions pertained to an expense related to a future fiscal year, which had not yet been incurred at the time of recognition and was outside the grant’s period of performance. The client did not request reimbursement for these expenditures and subsequently removed them from the general ledger in 2024. However, the removal of these expenses was not properly reflected on the SEFA schedule. Cause: The improper preparation of the SEFA schedule was due to inadequate internal controls over financial reporting and lack of proper training for staff responsible for reporting the SEFA expenditures. Additionally, there was insufficient review and oversight of the SEFA preparation process. Effect: A total of $19,374 of expenses were incorrectly included in the SEFA. Failure to remove these expenses from the SEFA misrepresented the total amount of federal assistance expanded and may impair the usefulness of the SEFA for the oversight federal agency. Questioned Costs: None. Repeat finding: This is not a repeat finding. Recommendation: We recommend the Organization revise its SEFA preparation procedures to ensure that only allowable and reimbursable expenditures of federal awards are reported. Management should provide additional training to staff responsible for SEFA preparation and implement a formal review process to verify the accuracy of SEFA amounts. Views of Responsible Officials and Planned Corrective Action (unaudited): See Corrective Action Plan.

Finding 2024-001: Reportable Finding Considered a Significant Deficiency – Inclusion of Unallowable Costs in the SEFA Program Name: STEM Education Assistance Listing #: 47.076 Program Year: 2024 Federal Awarding Agency: National Science Foundation Compliance Requirement: SEFA Preparation Criteria: According to 2 CFR Part 200, Subpart F, §200.510(b), the auditee must prepare a SEFA for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502. The SEFA must also include the CFDA number, the name of the Federal program, and the total amount expended. Condition: During our allowable cost testing, four exceptions were noted out of 15 selections. The first exception involved a transaction that included an estimated expense exceeding the actual cost incurred and falling outside the grant’s period of allowability. The other 3 exceptions pertained to an expense related to a future fiscal year, which had not yet been incurred at the time of recognition and was outside the grant’s period of performance. The client did not request reimbursement for these expenditures and subsequently removed them from the general ledger in 2024. However, the removal of these expenses was not properly reflected on the SEFA schedule. Cause: The improper preparation of the SEFA schedule was due to inadequate internal controls over financial reporting and lack of proper training for staff responsible for reporting the SEFA expenditures. Additionally, there was insufficient review and oversight of the SEFA preparation process. Effect: A total of $19,374 of expenses were incorrectly included in the SEFA. Failure to remove these expenses from the SEFA misrepresented the total amount of federal assistance expanded and may impair the usefulness of the SEFA for the oversight federal agency. Questioned Costs: None. Repeat finding: This is not a repeat finding. Recommendation: We recommend the Organization revise its SEFA preparation procedures to ensure that only allowable and reimbursable expenditures of federal awards are reported. Management should provide additional training to staff responsible for SEFA preparation and implement a formal review process to verify the accuracy of SEFA amounts. Views of Responsible Officials and Planned Corrective Action (unaudited): See Corrective Action Plan.

Finding 2024-001: Reportable Finding Considered a Significant Deficiency – Inclusion of Unallowable Costs in the SEFA Program Name: STEM Education Assistance Listing #: 47.076 Program Year: 2024 Federal Awarding Agency: National Science Foundation Compliance Requirement: SEFA Preparation Criteria: According to 2 CFR Part 200, Subpart F, §200.510(b), the auditee must prepare a SEFA for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502. The SEFA must also include the CFDA number, the name of the Federal program, and the total amount expended. Condition: During our allowable cost testing, four exceptions were noted out of 15 selections. The first exception involved a transaction that included an estimated expense exceeding the actual cost incurred and falling outside the grant’s period of allowability. The other 3 exceptions pertained to an expense related to a future fiscal year, which had not yet been incurred at the time of recognition and was outside the grant’s period of performance. The client did not request reimbursement for these expenditures and subsequently removed them from the general ledger in 2024. However, the removal of these expenses was not properly reflected on the SEFA schedule. Cause: The improper preparation of the SEFA schedule was due to inadequate internal controls over financial reporting and lack of proper training for staff responsible for reporting the SEFA expenditures. Additionally, there was insufficient review and oversight of the SEFA preparation process. Effect: A total of $19,374 of expenses were incorrectly included in the SEFA. Failure to remove these expenses from the SEFA misrepresented the total amount of federal assistance expanded and may impair the usefulness of the SEFA for the oversight federal agency. Questioned Costs: None. Repeat finding: This is not a repeat finding. Recommendation: We recommend the Organization revise its SEFA preparation procedures to ensure that only allowable and reimbursable expenditures of federal awards are reported. Management should provide additional training to staff responsible for SEFA preparation and implement a formal review process to verify the accuracy of SEFA amounts. Views of Responsible Officials and Planned Corrective Action (unaudited): See Corrective Action Plan.

Finding 2024-001: Reportable Finding Considered a Significant Deficiency – Inclusion of Unallowable Costs in the SEFA Program Name: STEM Education Assistance Listing #: 47.076 Program Year: 2024 Federal Awarding Agency: National Science Foundation Compliance Requirement: SEFA Preparation Criteria: According to 2 CFR Part 200, Subpart F, §200.510(b), the auditee must prepare a SEFA for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502. The SEFA must also include the CFDA number, the name of the Federal program, and the total amount expended. Condition: During our allowable cost testing, four exceptions were noted out of 15 selections. The first exception involved a transaction that included an estimated expense exceeding the actual cost incurred and falling outside the grant’s period of allowability. The other 3 exceptions pertained to an expense related to a future fiscal year, which had not yet been incurred at the time of recognition and was outside the grant’s period of performance. The client did not request reimbursement for these expenditures and subsequently removed them from the general ledger in 2024. However, the removal of these expenses was not properly reflected on the SEFA schedule. Cause: The improper preparation of the SEFA schedule was due to inadequate internal controls over financial reporting and lack of proper training for staff responsible for reporting the SEFA expenditures. Additionally, there was insufficient review and oversight of the SEFA preparation process. Effect: A total of $19,374 of expenses were incorrectly included in the SEFA. Failure to remove these expenses from the SEFA misrepresented the total amount of federal assistance expanded and may impair the usefulness of the SEFA for the oversight federal agency. Questioned Costs: None. Repeat finding: This is not a repeat finding. Recommendation: We recommend the Organization revise its SEFA preparation procedures to ensure that only allowable and reimbursable expenditures of federal awards are reported. Management should provide additional training to staff responsible for SEFA preparation and implement a formal review process to verify the accuracy of SEFA amounts. Views of Responsible Officials and Planned Corrective Action (unaudited): See Corrective Action Plan.

Finding 2024-001: Reportable Finding Considered a Significant Deficiency – Inclusion of Unallowable Costs in the SEFA Program Name: STEM Education Assistance Listing #: 47.076 Program Year: 2024 Federal Awarding Agency: National Science Foundation Compliance Requirement: SEFA Preparation Criteria: According to 2 CFR Part 200, Subpart F, §200.510(b), the auditee must prepare a SEFA for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502. The SEFA must also include the CFDA number, the name of the Federal program, and the total amount expended. Condition: During our allowable cost testing, four exceptions were noted out of 15 selections. The first exception involved a transaction that included an estimated expense exceeding the actual cost incurred and falling outside the grant’s period of allowability. The other 3 exceptions pertained to an expense related to a future fiscal year, which had not yet been incurred at the time of recognition and was outside the grant’s period of performance. The client did not request reimbursement for these expenditures and subsequently removed them from the general ledger in 2024. However, the removal of these expenses was not properly reflected on the SEFA schedule. Cause: The improper preparation of the SEFA schedule was due to inadequate internal controls over financial reporting and lack of proper training for staff responsible for reporting the SEFA expenditures. Additionally, there was insufficient review and oversight of the SEFA preparation process. Effect: A total of $19,374 of expenses were incorrectly included in the SEFA. Failure to remove these expenses from the SEFA misrepresented the total amount of federal assistance expanded and may impair the usefulness of the SEFA for the oversight federal agency. Questioned Costs: None. Repeat finding: This is not a repeat finding. Recommendation: We recommend the Organization revise its SEFA preparation procedures to ensure that only allowable and reimbursable expenditures of federal awards are reported. Management should provide additional training to staff responsible for SEFA preparation and implement a formal review process to verify the accuracy of SEFA amounts. Views of Responsible Officials and Planned Corrective Action (unaudited): See Corrective Action Plan.

Finding 2024-002 – Significant Deficiency Award No.: Assistance List No. 15.555 and No. 15.074 Federal Grantor: U.S. Department of the Interior, Bureau of Reclamation, AL No. 15.074 Passed- Through the Del Puerto Water District Compliance Requirement: Other compliance requirements. Condition: The Schedule of Expenditures of Federal Awards (SEFA) was not complete, and expenditures reported on the SEFA were revised during the single audit. Criteria: 2 CFR Part 200, Subpart F (Uniform Guidance) Section 200.502 states, “The auditee should prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee’s financial statements.” Internal controls over preparation of the SEFA should be in place to ensure accrual basis expenses incurred under each federal program are properly reported as expenses on the SEFA and are properly reported as revenue in the financial statements prior to the start of the single audit. Cause: SEFA was not fully reconciled and finalized until after the single audit began. Effect: Expenses were omitted from the SEFA that should have been included and other expenses were included on the SEFA that were not eligible. The SEFA had to be revised for multiple grants over the course of the audit. This delayed the audit testing and major program determination process and could have resulted in the wrong programs being tested as major programs and the single audit not complying with the Uniform Guidance. Context: The District’s Finance Department was not informed of grant amendments that changed the amount of federal funding available. The expenses reported on the SEFA were revised during the single audit as follows. • AL No. 15.555 San Joaquin River Restoration Program Poso Canal Bridge Replacement: The District estimated additional reimbursable costs of $30,335 existed for the Poso Canal Bridge Replacement grant under a potential new $990,000 grant amendment that was to be signed by the USBR in 2025. The amendment was not approved for the Poso Canal Bridge Replacement but the District included the additional reimbursable expenses on the SEFA. The expenses on the SEFA had to be reduced to reflect the eligible federal grant maximum reimbursable expenses under the approved grant agreement at year-end. • AL No. 15.704 Small Surface Water and Groundwater Storage Projects Orestimba Creek Recharge and Recovery Expansion: An additional grant amendment was identified during the single audit that authorized an additional $1,262,928 of federal funding. The District had eligible expenses during the period of performance to fully claim the additional funding, but did not include the expenses on the SEFA. Recommendation: We recommend additional review procedures be implemented to ensure the SEFA is complete and accurate when the single audit begins, which includes working with program managers to identify each grant awarded, obtain current executed grant agreements and amendments, reconciling all expenses incurred under each federal awards down to the invoice, payroll check and lowest level of any other costs claimed, cutting-off each expense at year-end and claiming the reconciled qualifying expenses within 45 days after quarter end. At year-end, programs should be reviewed for cost adjustments, extensions, and other changes that should be reflected on the SEFA when reconciling expenses for the SEFA. Separate general ledger program codes should be used for each grant on the SEFA that summarizes expenses down to the individual invoice level that should be provided to the auditor for the single audit. If overclaimed amounts are identified, the grantor and/or pass-through agency should be contacted to determine whether to return the funds or apply the overclaimed amounts to future claims. Views of Responsible Officials and Planned Corrective Actions: Management’s response and planned corrective action is included in the Corrective Action Plan included at the end of the report.

Finding 2024-002 – Significant Deficiency Award No.: Assistance List No. 15.555 and No. 15.074 Federal Grantor: U.S. Department of the Interior, Bureau of Reclamation, AL No. 15.074 Passed- Through the Del Puerto Water District Compliance Requirement: Other compliance requirements. Condition: The Schedule of Expenditures of Federal Awards (SEFA) was not complete, and expenditures reported on the SEFA were revised during the single audit. Criteria: 2 CFR Part 200, Subpart F (Uniform Guidance) Section 200.502 states, “The auditee should prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee’s financial statements.” Internal controls over preparation of the SEFA should be in place to ensure accrual basis expenses incurred under each federal program are properly reported as expenses on the SEFA and are properly reported as revenue in the financial statements prior to the start of the single audit. Cause: SEFA was not fully reconciled and finalized until after the single audit began. Effect: Expenses were omitted from the SEFA that should have been included and other expenses were included on the SEFA that were not eligible. The SEFA had to be revised for multiple grants over the course of the audit. This delayed the audit testing and major program determination process and could have resulted in the wrong programs being tested as major programs and the single audit not complying with the Uniform Guidance. Context: The District’s Finance Department was not informed of grant amendments that changed the amount of federal funding available. The expenses reported on the SEFA were revised during the single audit as follows. • AL No. 15.555 San Joaquin River Restoration Program Poso Canal Bridge Replacement: The District estimated additional reimbursable costs of $30,335 existed for the Poso Canal Bridge Replacement grant under a potential new $990,000 grant amendment that was to be signed by the USBR in 2025. The amendment was not approved for the Poso Canal Bridge Replacement but the District included the additional reimbursable expenses on the SEFA. The expenses on the SEFA had to be reduced to reflect the eligible federal grant maximum reimbursable expenses under the approved grant agreement at year-end. • AL No. 15.704 Small Surface Water and Groundwater Storage Projects Orestimba Creek Recharge and Recovery Expansion: An additional grant amendment was identified during the single audit that authorized an additional $1,262,928 of federal funding. The District had eligible expenses during the period of performance to fully claim the additional funding, but did not include the expenses on the SEFA. Recommendation: We recommend additional review procedures be implemented to ensure the SEFA is complete and accurate when the single audit begins, which includes working with program managers to identify each grant awarded, obtain current executed grant agreements and amendments, reconciling all expenses incurred under each federal awards down to the invoice, payroll check and lowest level of any other costs claimed, cutting-off each expense at year-end and claiming the reconciled qualifying expenses within 45 days after quarter end. At year-end, programs should be reviewed for cost adjustments, extensions, and other changes that should be reflected on the SEFA when reconciling expenses for the SEFA. Separate general ledger program codes should be used for each grant on the SEFA that summarizes expenses down to the individual invoice level that should be provided to the auditor for the single audit. If overclaimed amounts are identified, the grantor and/or pass-through agency should be contacted to determine whether to return the funds or apply the overclaimed amounts to future claims. Views of Responsible Officials and Planned Corrective Actions: Management’s response and planned corrective action is included in the Corrective Action Plan included at the end of the report.

Identification as a Repeat Finding: No Finding: The Organization omitted the COVID-19 Economic Injury Disaster Assistance Loan (EIDL) from the initial draft of the SEFA presented to auditors. Criteria: 2 CFR 200.502 requires the auditee to report federal awards expended under loan programs including the balance of loans from previous years at the beginning of the audit period for which the Federal Government imposes continuing compliance requirements. The EIDL loan requires annual reporting to the Small Business Administration (SBA) as noted in prior year Finding 2023-002. Sample Size and Population: Not applicable Condition and Context: The EIDL loan totaling $584,853 was omitted from the draft SEFA provided to auditors on May 15, 2025. Effect: Exclusion understated total federal awards by 8%, changing the preliminary major-program determination and potentially reducing audit coverage below the required 40% threshold. Cause: The Organization did not identify ongoing compliance requirements associated with the EIDL loan. Management relied on SBA guidance that addresses PPP loans and other SBA programs but do not mention COVID-19 Relief EIDL programs, indicating a training gap in award-specific requirements. Recommendations: We recommend the Organization review loan agreements and program specific guidance for continuing compliance requirements before removing federal loans from the SEFA. Questioned Costs: None Management Response: Management response is reported in the “Corrective Action Plan” at the end of this report. Contact Person: Marc Cote, Executive Director 206-542-6644

Assistance Listing Number, Federal Agency, and Program Name - ALN 20.205, Department of Transportation, Highway Planning and Construction - ALN 21.027, Department of the Treasury, COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year - ALN 20.205: SHO M455- 136 (2024), STU M455-129 (2024), STU 2873-215 (2024), CRP M455-164 (2024), SHO M455-137 (2024), SHO M455-135 (2024), and STU M455-125 (2024) - ALN 21.027: N/A Pass-through Entity - ALN 20.205: Colorado Department of Transportation - ALN 21.027: N/A Finding Type - Material weakness Repeat Finding - Yes 2023-003 Criteria - According to 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Generally, the activity pertains to the events that require the nonfederal entity to comply with federal status, regulations, and the terms and conditions of federal awards, such as expenditure/expense transactions associated with awards including grants. Condition - The fiscal year 2024 schedule of expenditures of federal awards (SEFA) that was initially provided to the auditors was incorrect because it included expenditures related to fiscal years 2023 and 2025. Questioned Costs - N/A If Questioned Costs are not Determinable, Description of why Known Questioned Costs Were Undetermined or Otherwise Could not be Reported - N/A Identification of How Questioned Costs Were Computed - N/A Context - Within Highway Planning and Construction, the expenditures reported on the initial SEFA included $142,724 that related to expenditures incurred in fiscal year 2023. There was also $16,128 that related to expenditures incurred in fiscal year 2024 that was not reported on the initial SEFA. Within Coronavirus State and Local Fiscal Recovery Funds, the expenditures reported on the initial SEFA included $15,921 that related to expenditures incurred in fiscal year 2023 and $99,200 that related to expenditures incurred in fiscal year 2025. Cause and Effect - The City reported federal expenditures in congruence with requests for reimbursement from the federal agency, rather than when the expenditures was incurred. Recommendation - The City should implement controls to ensure that the SEFA is prepared in accordance with applicable rules and regulations. Views of Responsible Officials and Corrective Action Plan - The City of Fort Collins, Colorado has determined that two separate and identifiable root causes led to the inclusion of expenditures from fiscal years 2023 and 2025 in the initial fiscal year 2024 SEFA. 1. Improper Accrual of Prepayments: A small number of transactions involving partial prepayments were not properly accrued in accordance with accounting standards. To address this issue, the City will implement a formal review process where all reimbursement requests are reviewed by the grant accountant prior to submission. This review will include a targeted examination of expenditure listings to identify and ensure appropriate treatment of any transactions requiring accrual as prepayments. 2. Inconsistencies Between Reimbursement Packets and the General Ledger: For the Highway Planning and Construction Cluster, the SEFA preparation process previously relied on reimbursement request packets compiled by departmental staff. In some cases, these packets did not accurately reflect the timing of expenditures recorded in the general ledger. To enhance accuracy, the City will implement a reconciliation procedure requiring the grant accountant to cross-reference reimbursement packet data with the general ledger during SEFA preparation. This step will help ensure that all expenditures are properly reported in the appropriate fiscal year. The City is confident that these corrective actions will strengthen internal controls over SEFA preparation and prevent recurrence of similar issues in future reporting periods.

Assistance Listing Number, Federal Agency, and Program Name - ALN 20.205, Department of Transportation, Highway Planning and Construction - ALN 21.027, Department of the Treasury, COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year - ALN 20.205: SHO M455- 136 (2024), STU M455-129 (2024), STU 2873-215 (2024), CRP M455-164 (2024), SHO M455-137 (2024), SHO M455-135 (2024), and STU M455-125 (2024) - ALN 21.027: N/A Pass-through Entity - ALN 20.205: Colorado Department of Transportation - ALN 21.027: N/A Finding Type - Material weakness Repeat Finding - Yes 2023-003 Criteria - According to 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Generally, the activity pertains to the events that require the nonfederal entity to comply with federal status, regulations, and the terms and conditions of federal awards, such as expenditure/expense transactions associated with awards including grants. Condition - The fiscal year 2024 schedule of expenditures of federal awards (SEFA) that was initially provided to the auditors was incorrect because it included expenditures related to fiscal years 2023 and 2025. Questioned Costs - N/A If Questioned Costs are not Determinable, Description of why Known Questioned Costs Were Undetermined or Otherwise Could not be Reported - N/A Identification of How Questioned Costs Were Computed - N/A Context - Within Highway Planning and Construction, the expenditures reported on the initial SEFA included $142,724 that related to expenditures incurred in fiscal year 2023. There was also $16,128 that related to expenditures incurred in fiscal year 2024 that was not reported on the initial SEFA. Within Coronavirus State and Local Fiscal Recovery Funds, the expenditures reported on the initial SEFA included $15,921 that related to expenditures incurred in fiscal year 2023 and $99,200 that related to expenditures incurred in fiscal year 2025. Cause and Effect - The City reported federal expenditures in congruence with requests for reimbursement from the federal agency, rather than when the expenditures was incurred. Recommendation - The City should implement controls to ensure that the SEFA is prepared in accordance with applicable rules and regulations. Views of Responsible Officials and Corrective Action Plan - The City of Fort Collins, Colorado has determined that two separate and identifiable root causes led to the inclusion of expenditures from fiscal years 2023 and 2025 in the initial fiscal year 2024 SEFA. 1. Improper Accrual of Prepayments: A small number of transactions involving partial prepayments were not properly accrued in accordance with accounting standards. To address this issue, the City will implement a formal review process where all reimbursement requests are reviewed by the grant accountant prior to submission. This review will include a targeted examination of expenditure listings to identify and ensure appropriate treatment of any transactions requiring accrual as prepayments. 2. Inconsistencies Between Reimbursement Packets and the General Ledger: For the Highway Planning and Construction Cluster, the SEFA preparation process previously relied on reimbursement request packets compiled by departmental staff. In some cases, these packets did not accurately reflect the timing of expenditures recorded in the general ledger. To enhance accuracy, the City will implement a reconciliation procedure requiring the grant accountant to cross-reference reimbursement packet data with the general ledger during SEFA preparation. This step will help ensure that all expenditures are properly reported in the appropriate fiscal year. The City is confident that these corrective actions will strengthen internal controls over SEFA preparation and prevent recurrence of similar issues in future reporting periods.

Assistance Listing Number, Federal Agency, and Program Name - ALN 20.205, Department of Transportation, Highway Planning and Construction - ALN 21.027, Department of the Treasury, COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year - ALN 20.205: SHO M455- 136 (2024), STU M455-129 (2024), STU 2873-215 (2024), CRP M455-164 (2024), SHO M455-137 (2024), SHO M455-135 (2024), and STU M455-125 (2024) - ALN 21.027: N/A Pass-through Entity - ALN 20.205: Colorado Department of Transportation - ALN 21.027: N/A Finding Type - Material weakness Repeat Finding - Yes 2023-003 Criteria - According to 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Generally, the activity pertains to the events that require the nonfederal entity to comply with federal status, regulations, and the terms and conditions of federal awards, such as expenditure/expense transactions associated with awards including grants. Condition - The fiscal year 2024 schedule of expenditures of federal awards (SEFA) that was initially provided to the auditors was incorrect because it included expenditures related to fiscal years 2023 and 2025. Questioned Costs - N/A If Questioned Costs are not Determinable, Description of why Known Questioned Costs Were Undetermined or Otherwise Could not be Reported - N/A Identification of How Questioned Costs Were Computed - N/A Context - Within Highway Planning and Construction, the expenditures reported on the initial SEFA included $142,724 that related to expenditures incurred in fiscal year 2023. There was also $16,128 that related to expenditures incurred in fiscal year 2024 that was not reported on the initial SEFA. Within Coronavirus State and Local Fiscal Recovery Funds, the expenditures reported on the initial SEFA included $15,921 that related to expenditures incurred in fiscal year 2023 and $99,200 that related to expenditures incurred in fiscal year 2025. Cause and Effect - The City reported federal expenditures in congruence with requests for reimbursement from the federal agency, rather than when the expenditures was incurred. Recommendation - The City should implement controls to ensure that the SEFA is prepared in accordance with applicable rules and regulations. Views of Responsible Officials and Corrective Action Plan - The City of Fort Collins, Colorado has determined that two separate and identifiable root causes led to the inclusion of expenditures from fiscal years 2023 and 2025 in the initial fiscal year 2024 SEFA. 1. Improper Accrual of Prepayments: A small number of transactions involving partial prepayments were not properly accrued in accordance with accounting standards. To address this issue, the City will implement a formal review process where all reimbursement requests are reviewed by the grant accountant prior to submission. This review will include a targeted examination of expenditure listings to identify and ensure appropriate treatment of any transactions requiring accrual as prepayments. 2. Inconsistencies Between Reimbursement Packets and the General Ledger: For the Highway Planning and Construction Cluster, the SEFA preparation process previously relied on reimbursement request packets compiled by departmental staff. In some cases, these packets did not accurately reflect the timing of expenditures recorded in the general ledger. To enhance accuracy, the City will implement a reconciliation procedure requiring the grant accountant to cross-reference reimbursement packet data with the general ledger during SEFA preparation. This step will help ensure that all expenditures are properly reported in the appropriate fiscal year. The City is confident that these corrective actions will strengthen internal controls over SEFA preparation and prevent recurrence of similar issues in future reporting periods.

Assistance Listing Number, Federal Agency, and Program Name - ALN 20.205, Department of Transportation, Highway Planning and Construction - ALN 21.027, Department of the Treasury, COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year - ALN 20.205: SHO M455- 136 (2024), STU M455-129 (2024), STU 2873-215 (2024), CRP M455-164 (2024), SHO M455-137 (2024), SHO M455-135 (2024), and STU M455-125 (2024) - ALN 21.027: N/A Pass-through Entity - ALN 20.205: Colorado Department of Transportation - ALN 21.027: N/A Finding Type - Material weakness Repeat Finding - Yes 2023-003 Criteria - According to 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Generally, the activity pertains to the events that require the nonfederal entity to comply with federal status, regulations, and the terms and conditions of federal awards, such as expenditure/expense transactions associated with awards including grants. Condition - The fiscal year 2024 schedule of expenditures of federal awards (SEFA) that was initially provided to the auditors was incorrect because it included expenditures related to fiscal years 2023 and 2025. Questioned Costs - N/A If Questioned Costs are not Determinable, Description of why Known Questioned Costs Were Undetermined or Otherwise Could not be Reported - N/A Identification of How Questioned Costs Were Computed - N/A Context - Within Highway Planning and Construction, the expenditures reported on the initial SEFA included $142,724 that related to expenditures incurred in fiscal year 2023. There was also $16,128 that related to expenditures incurred in fiscal year 2024 that was not reported on the initial SEFA. Within Coronavirus State and Local Fiscal Recovery Funds, the expenditures reported on the initial SEFA included $15,921 that related to expenditures incurred in fiscal year 2023 and $99,200 that related to expenditures incurred in fiscal year 2025. Cause and Effect - The City reported federal expenditures in congruence with requests for reimbursement from the federal agency, rather than when the expenditures was incurred. Recommendation - The City should implement controls to ensure that the SEFA is prepared in accordance with applicable rules and regulations. Views of Responsible Officials and Corrective Action Plan - The City of Fort Collins, Colorado has determined that two separate and identifiable root causes led to the inclusion of expenditures from fiscal years 2023 and 2025 in the initial fiscal year 2024 SEFA. 1. Improper Accrual of Prepayments: A small number of transactions involving partial prepayments were not properly accrued in accordance with accounting standards. To address this issue, the City will implement a formal review process where all reimbursement requests are reviewed by the grant accountant prior to submission. This review will include a targeted examination of expenditure listings to identify and ensure appropriate treatment of any transactions requiring accrual as prepayments. 2. Inconsistencies Between Reimbursement Packets and the General Ledger: For the Highway Planning and Construction Cluster, the SEFA preparation process previously relied on reimbursement request packets compiled by departmental staff. In some cases, these packets did not accurately reflect the timing of expenditures recorded in the general ledger. To enhance accuracy, the City will implement a reconciliation procedure requiring the grant accountant to cross-reference reimbursement packet data with the general ledger during SEFA preparation. This step will help ensure that all expenditures are properly reported in the appropriate fiscal year. The City is confident that these corrective actions will strengthen internal controls over SEFA preparation and prevent recurrence of similar issues in future reporting periods.

Assistance Listing Number, Federal Agency, and Program Name - ALN 20.205, Department of Transportation, Highway Planning and Construction - ALN 21.027, Department of the Treasury, COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year - ALN 20.205: SHO M455- 136 (2024), STU M455-129 (2024), STU 2873-215 (2024), CRP M455-164 (2024), SHO M455-137 (2024), SHO M455-135 (2024), and STU M455-125 (2024) - ALN 21.027: N/A Pass-through Entity - ALN 20.205: Colorado Department of Transportation - ALN 21.027: N/A Finding Type - Material weakness Repeat Finding - Yes 2023-003 Criteria - According to 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Generally, the activity pertains to the events that require the nonfederal entity to comply with federal status, regulations, and the terms and conditions of federal awards, such as expenditure/expense transactions associated with awards including grants. Condition - The fiscal year 2024 schedule of expenditures of federal awards (SEFA) that was initially provided to the auditors was incorrect because it included expenditures related to fiscal years 2023 and 2025. Questioned Costs - N/A If Questioned Costs are not Determinable, Description of why Known Questioned Costs Were Undetermined or Otherwise Could not be Reported - N/A Identification of How Questioned Costs Were Computed - N/A Context - Within Highway Planning and Construction, the expenditures reported on the initial SEFA included $142,724 that related to expenditures incurred in fiscal year 2023. There was also $16,128 that related to expenditures incurred in fiscal year 2024 that was not reported on the initial SEFA. Within Coronavirus State and Local Fiscal Recovery Funds, the expenditures reported on the initial SEFA included $15,921 that related to expenditures incurred in fiscal year 2023 and $99,200 that related to expenditures incurred in fiscal year 2025. Cause and Effect - The City reported federal expenditures in congruence with requests for reimbursement from the federal agency, rather than when the expenditures was incurred. Recommendation - The City should implement controls to ensure that the SEFA is prepared in accordance with applicable rules and regulations. Views of Responsible Officials and Corrective Action Plan - The City of Fort Collins, Colorado has determined that two separate and identifiable root causes led to the inclusion of expenditures from fiscal years 2023 and 2025 in the initial fiscal year 2024 SEFA. 1. Improper Accrual of Prepayments: A small number of transactions involving partial prepayments were not properly accrued in accordance with accounting standards. To address this issue, the City will implement a formal review process where all reimbursement requests are reviewed by the grant accountant prior to submission. This review will include a targeted examination of expenditure listings to identify and ensure appropriate treatment of any transactions requiring accrual as prepayments. 2. Inconsistencies Between Reimbursement Packets and the General Ledger: For the Highway Planning and Construction Cluster, the SEFA preparation process previously relied on reimbursement request packets compiled by departmental staff. In some cases, these packets did not accurately reflect the timing of expenditures recorded in the general ledger. To enhance accuracy, the City will implement a reconciliation procedure requiring the grant accountant to cross-reference reimbursement packet data with the general ledger during SEFA preparation. This step will help ensure that all expenditures are properly reported in the appropriate fiscal year. The City is confident that these corrective actions will strengthen internal controls over SEFA preparation and prevent recurrence of similar issues in future reporting periods.

Assistance Listing Number, Federal Agency, and Program Name - ALN 20.205, Department of Transportation, Highway Planning and Construction - ALN 21.027, Department of the Treasury, COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year - ALN 20.205: SHO M455- 136 (2024), STU M455-129 (2024), STU 2873-215 (2024), CRP M455-164 (2024), SHO M455-137 (2024), SHO M455-135 (2024), and STU M455-125 (2024) - ALN 21.027: N/A Pass-through Entity - ALN 20.205: Colorado Department of Transportation - ALN 21.027: N/A Finding Type - Material weakness Repeat Finding - Yes 2023-003 Criteria - According to 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Generally, the activity pertains to the events that require the nonfederal entity to comply with federal status, regulations, and the terms and conditions of federal awards, such as expenditure/expense transactions associated with awards including grants. Condition - The fiscal year 2024 schedule of expenditures of federal awards (SEFA) that was initially provided to the auditors was incorrect because it included expenditures related to fiscal years 2023 and 2025. Questioned Costs - N/A If Questioned Costs are not Determinable, Description of why Known Questioned Costs Were Undetermined or Otherwise Could not be Reported - N/A Identification of How Questioned Costs Were Computed - N/A Context - Within Highway Planning and Construction, the expenditures reported on the initial SEFA included $142,724 that related to expenditures incurred in fiscal year 2023. There was also $16,128 that related to expenditures incurred in fiscal year 2024 that was not reported on the initial SEFA. Within Coronavirus State and Local Fiscal Recovery Funds, the expenditures reported on the initial SEFA included $15,921 that related to expenditures incurred in fiscal year 2023 and $99,200 that related to expenditures incurred in fiscal year 2025. Cause and Effect - The City reported federal expenditures in congruence with requests for reimbursement from the federal agency, rather than when the expenditures was incurred. Recommendation - The City should implement controls to ensure that the SEFA is prepared in accordance with applicable rules and regulations. Views of Responsible Officials and Corrective Action Plan - The City of Fort Collins, Colorado has determined that two separate and identifiable root causes led to the inclusion of expenditures from fiscal years 2023 and 2025 in the initial fiscal year 2024 SEFA. 1. Improper Accrual of Prepayments: A small number of transactions involving partial prepayments were not properly accrued in accordance with accounting standards. To address this issue, the City will implement a formal review process where all reimbursement requests are reviewed by the grant accountant prior to submission. This review will include a targeted examination of expenditure listings to identify and ensure appropriate treatment of any transactions requiring accrual as prepayments. 2. Inconsistencies Between Reimbursement Packets and the General Ledger: For the Highway Planning and Construction Cluster, the SEFA preparation process previously relied on reimbursement request packets compiled by departmental staff. In some cases, these packets did not accurately reflect the timing of expenditures recorded in the general ledger. To enhance accuracy, the City will implement a reconciliation procedure requiring the grant accountant to cross-reference reimbursement packet data with the general ledger during SEFA preparation. This step will help ensure that all expenditures are properly reported in the appropriate fiscal year. The City is confident that these corrective actions will strengthen internal controls over SEFA preparation and prevent recurrence of similar issues in future reporting periods.

Assistance Listing, Federal Agency, and Program Name - 20.205, U.S. Department of Transportation, Highway Planning and Construction; 15.916, U.S. Department of the Interior, Outdoor Recreation, Acquisition, Development and Planning Federal Award Identification Number and Year - FAINs not available Pass through Entity - ALN 20.205 Colorado Department of Transportiation; ALN 15.916 Colorado Parks and Wildlife/Land and Water Conservation Fund Finding Type - Material weakness Repeat Finding - No Criteria - The Single Audit Act and Uniform Guidance require a nonfederal entity that expends $750,000 or more of federal awards in a fiscal year to have a single or program specific audit. 2 CFR §200.508 (b) indicates that the auditee must prepare financial statements, including the schedule of expenditures of federal awards, in accordance with 2 CFR §200.510. Additionally, 2 CFR §200.502 describes the basis for determining the timing of when federal awards are deemed expended and, therefore, reportable on the schedule. Condition - The schedule of expenditures of federal awards (the "SEFA") was not accurate. Questioned Costs - None If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - During the fiscal year ended December 31, 2024, the City expended approximately $22,617,000 of federal funding. The initial draft of the SEFA included the following inaccuracies: ALN 20.205 The expenditures reported on the SEFA were overstated by $19,522 for one award and understated by $145,869 for another award. ALN 15.916 The expenditures reported on the SEFA were overstated by $45,915 The errors noted above have been corrected on the SEFA as of December 31, 2024. Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate for the fiscal period under audit. The errors resulted in the understatement of federal expenditures. Recommendation - We recommend the City implement a process to ensure that the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions - The City accepts this finding. As part of the revision to the City’s grant process and procedures, we will enhance our master grant tracking spreadsheet to ensure grant expenditures are reported correctly. We will collaborate with city departments to ensure costs are recorded correctly. See the corrective action plan.

Assistance Listing, Federal Agency, and Program Name - 20.205, U.S. Department of Transportation, Highway Planning and Construction; 15.916, U.S. Department of the Interior, Outdoor Recreation, Acquisition, Development and Planning Federal Award Identification Number and Year - FAINs not available Pass through Entity - ALN 20.205 Colorado Department of Transportiation; ALN 15.916 Colorado Parks and Wildlife/Land and Water Conservation Fund Finding Type - Material weakness Repeat Finding - No Criteria - The Single Audit Act and Uniform Guidance require a nonfederal entity that expends $750,000 or more of federal awards in a fiscal year to have a single or program specific audit. 2 CFR §200.508 (b) indicates that the auditee must prepare financial statements, including the schedule of expenditures of federal awards, in accordance with 2 CFR §200.510. Additionally, 2 CFR §200.502 describes the basis for determining the timing of when federal awards are deemed expended and, therefore, reportable on the schedule. Condition - The schedule of expenditures of federal awards (the "SEFA") was not accurate. Questioned Costs - None If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - During the fiscal year ended December 31, 2024, the City expended approximately $22,617,000 of federal funding. The initial draft of the SEFA included the following inaccuracies: ALN 20.205 The expenditures reported on the SEFA were overstated by $19,522 for one award and understated by $145,869 for another award. ALN 15.916 The expenditures reported on the SEFA were overstated by $45,915 The errors noted above have been corrected on the SEFA as of December 31, 2024. Cause and Effect - Controls in place did not ensure the SEFA was complete and accurate for the fiscal period under audit. The errors resulted in the understatement of federal expenditures. Recommendation - We recommend the City implement a process to ensure that the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions - The City accepts this finding. As part of the revision to the City’s grant process and procedures, we will enhance our master grant tracking spreadsheet to ensure grant expenditures are reported correctly. We will collaborate with city departments to ensure costs are recorded correctly. See the corrective action plan.

Finding 2024-001: Reportable Finding Considered a Significant Deficiency – Inclusion of Unallowable Costs in the SEFA Program Name: STEM Education Assistance Listing #: 47.076 Program Year: 2024 Federal Awarding Agency: National Science Foundation Compliance Requirement: SEFA Preparation Criteria: According to 2 CFR Part 200, Subpart F, §200.510(b), the auditee must prepare a SEFA for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502. The SEFA must also include the CFDA number, the name of the Federal program, and the total amount expended. Condition: During our allowable cost testing, four exceptions were noted out of 15 selections. The first exception involved a transaction that included an estimated expense exceeding the actual cost incurred and falling outside the grant’s period of allowability. The other 3 exceptions pertained to an expense related to a future fiscal year, which had not yet been incurred at the time of recognition and was outside the grant’s period of performance. The client did not request reimbursement for these expenditures and subsequently removed them from the general ledger in 2024. However, the removal of these expenses was not properly reflected on the SEFA schedule. Cause: The improper preparation of the SEFA schedule was due to inadequate internal controls over financial reporting and lack of proper training for staff responsible for reporting the SEFA expenditures. Additionally, there was insufficient review and oversight of the SEFA preparation process. Effect: A total of $19,374 of expenses were incorrectly included in the SEFA. Failure to remove these expenses from the SEFA misrepresented the total amount of federal assistance expanded and may impair the usefulness of the SEFA for the oversight federal agency. Questioned Costs: None. Repeat finding: This is not a repeat finding. Recommendation: We recommend the Organization revise its SEFA preparation procedures to ensure that only allowable and reimbursable expenditures of federal awards are reported. Management should provide additional training to staff responsible for SEFA preparation and implement a formal review process to verify the accuracy of SEFA amounts. Views of Responsible Officials and Planned Corrective Action (unaudited): See Corrective Action Plan.

Finding 2024-001: Reportable Finding Considered a Significant Deficiency – Inclusion of Unallowable Costs in the SEFA Program Name: STEM Education Assistance Listing #: 47.076 Program Year: 2024 Federal Awarding Agency: National Science Foundation Compliance Requirement: SEFA Preparation Criteria: According to 2 CFR Part 200, Subpart F, §200.510(b), the auditee must prepare a SEFA for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502. The SEFA must also include the CFDA number, the name of the Federal program, and the total amount expended. Condition: During our allowable cost testing, four exceptions were noted out of 15 selections. The first exception involved a transaction that included an estimated expense exceeding the actual cost incurred and falling outside the grant’s period of allowability. The other 3 exceptions pertained to an expense related to a future fiscal year, which had not yet been incurred at the time of recognition and was outside the grant’s period of performance. The client did not request reimbursement for these expenditures and subsequently removed them from the general ledger in 2024. However, the removal of these expenses was not properly reflected on the SEFA schedule. Cause: The improper preparation of the SEFA schedule was due to inadequate internal controls over financial reporting and lack of proper training for staff responsible for reporting the SEFA expenditures. Additionally, there was insufficient review and oversight of the SEFA preparation process. Effect: A total of $19,374 of expenses were incorrectly included in the SEFA. Failure to remove these expenses from the SEFA misrepresented the total amount of federal assistance expanded and may impair the usefulness of the SEFA for the oversight federal agency. Questioned Costs: None. Repeat finding: This is not a repeat finding. Recommendation: We recommend the Organization revise its SEFA preparation procedures to ensure that only allowable and reimbursable expenditures of federal awards are reported. Management should provide additional training to staff responsible for SEFA preparation and implement a formal review process to verify the accuracy of SEFA amounts. Views of Responsible Officials and Planned Corrective Action (unaudited): See Corrective Action Plan.

Finding 2024-001: Reportable Finding Considered a Significant Deficiency – Inclusion of Unallowable Costs in the SEFA Program Name: STEM Education Assistance Listing #: 47.076 Program Year: 2024 Federal Awarding Agency: National Science Foundation Compliance Requirement: SEFA Preparation Criteria: According to 2 CFR Part 200, Subpart F, §200.510(b), the auditee must prepare a SEFA for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502. The SEFA must also include the CFDA number, the name of the Federal program, and the total amount expended. Condition: During our allowable cost testing, four exceptions were noted out of 15 selections. The first exception involved a transaction that included an estimated expense exceeding the actual cost incurred and falling outside the grant’s period of allowability. The other 3 exceptions pertained to an expense related to a future fiscal year, which had not yet been incurred at the time of recognition and was outside the grant’s period of performance. The client did not request reimbursement for these expenditures and subsequently removed them from the general ledger in 2024. However, the removal of these expenses was not properly reflected on the SEFA schedule. Cause: The improper preparation of the SEFA schedule was due to inadequate internal controls over financial reporting and lack of proper training for staff responsible for reporting the SEFA expenditures. Additionally, there was insufficient review and oversight of the SEFA preparation process. Effect: A total of $19,374 of expenses were incorrectly included in the SEFA. Failure to remove these expenses from the SEFA misrepresented the total amount of federal assistance expanded and may impair the usefulness of the SEFA for the oversight federal agency. Questioned Costs: None. Repeat finding: This is not a repeat finding. Recommendation: We recommend the Organization revise its SEFA preparation procedures to ensure that only allowable and reimbursable expenditures of federal awards are reported. Management should provide additional training to staff responsible for SEFA preparation and implement a formal review process to verify the accuracy of SEFA amounts. Views of Responsible Officials and Planned Corrective Action (unaudited): See Corrective Action Plan.

Finding 2024-001: Reportable Finding Considered a Significant Deficiency – Inclusion of Unallowable Costs in the SEFA Program Name: STEM Education Assistance Listing #: 47.076 Program Year: 2024 Federal Awarding Agency: National Science Foundation Compliance Requirement: SEFA Preparation Criteria: According to 2 CFR Part 200, Subpart F, §200.510(b), the auditee must prepare a SEFA for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502. The SEFA must also include the CFDA number, the name of the Federal program, and the total amount expended. Condition: During our allowable cost testing, four exceptions were noted out of 15 selections. The first exception involved a transaction that included an estimated expense exceeding the actual cost incurred and falling outside the grant’s period of allowability. The other 3 exceptions pertained to an expense related to a future fiscal year, which had not yet been incurred at the time of recognition and was outside the grant’s period of performance. The client did not request reimbursement for these expenditures and subsequently removed them from the general ledger in 2024. However, the removal of these expenses was not properly reflected on the SEFA schedule. Cause: The improper preparation of the SEFA schedule was due to inadequate internal controls over financial reporting and lack of proper training for staff responsible for reporting the SEFA expenditures. Additionally, there was insufficient review and oversight of the SEFA preparation process. Effect: A total of $19,374 of expenses were incorrectly included in the SEFA. Failure to remove these expenses from the SEFA misrepresented the total amount of federal assistance expanded and may impair the usefulness of the SEFA for the oversight federal agency. Questioned Costs: None. Repeat finding: This is not a repeat finding. Recommendation: We recommend the Organization revise its SEFA preparation procedures to ensure that only allowable and reimbursable expenditures of federal awards are reported. Management should provide additional training to staff responsible for SEFA preparation and implement a formal review process to verify the accuracy of SEFA amounts. Views of Responsible Officials and Planned Corrective Action (unaudited): See Corrective Action Plan.

Finding 2024-001: Reportable Finding Considered a Significant Deficiency – Inclusion of Unallowable Costs in the SEFA Program Name: STEM Education Assistance Listing #: 47.076 Program Year: 2024 Federal Awarding Agency: National Science Foundation Compliance Requirement: SEFA Preparation Criteria: According to 2 CFR Part 200, Subpart F, §200.510(b), the auditee must prepare a SEFA for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502. The SEFA must also include the CFDA number, the name of the Federal program, and the total amount expended. Condition: During our allowable cost testing, four exceptions were noted out of 15 selections. The first exception involved a transaction that included an estimated expense exceeding the actual cost incurred and falling outside the grant’s period of allowability. The other 3 exceptions pertained to an expense related to a future fiscal year, which had not yet been incurred at the time of recognition and was outside the grant’s period of performance. The client did not request reimbursement for these expenditures and subsequently removed them from the general ledger in 2024. However, the removal of these expenses was not properly reflected on the SEFA schedule. Cause: The improper preparation of the SEFA schedule was due to inadequate internal controls over financial reporting and lack of proper training for staff responsible for reporting the SEFA expenditures. Additionally, there was insufficient review and oversight of the SEFA preparation process. Effect: A total of $19,374 of expenses were incorrectly included in the SEFA. Failure to remove these expenses from the SEFA misrepresented the total amount of federal assistance expanded and may impair the usefulness of the SEFA for the oversight federal agency. Questioned Costs: None. Repeat finding: This is not a repeat finding. Recommendation: We recommend the Organization revise its SEFA preparation procedures to ensure that only allowable and reimbursable expenditures of federal awards are reported. Management should provide additional training to staff responsible for SEFA preparation and implement a formal review process to verify the accuracy of SEFA amounts. Views of Responsible Officials and Planned Corrective Action (unaudited): See Corrective Action Plan.

Finding 2024-001: Reportable Finding Considered a Significant Deficiency – Inclusion of Unallowable Costs in the SEFA Program Name: STEM Education Assistance Listing #: 47.076 Program Year: 2024 Federal Awarding Agency: National Science Foundation Compliance Requirement: SEFA Preparation Criteria: According to 2 CFR Part 200, Subpart F, §200.510(b), the auditee must prepare a SEFA for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502. The SEFA must also include the CFDA number, the name of the Federal program, and the total amount expended. Condition: During our allowable cost testing, four exceptions were noted out of 15 selections. The first exception involved a transaction that included an estimated expense exceeding the actual cost incurred and falling outside the grant’s period of allowability. The other 3 exceptions pertained to an expense related to a future fiscal year, which had not yet been incurred at the time of recognition and was outside the grant’s period of performance. The client did not request reimbursement for these expenditures and subsequently removed them from the general ledger in 2024. However, the removal of these expenses was not properly reflected on the SEFA schedule. Cause: The improper preparation of the SEFA schedule was due to inadequate internal controls over financial reporting and lack of proper training for staff responsible for reporting the SEFA expenditures. Additionally, there was insufficient review and oversight of the SEFA preparation process. Effect: A total of $19,374 of expenses were incorrectly included in the SEFA. Failure to remove these expenses from the SEFA misrepresented the total amount of federal assistance expanded and may impair the usefulness of the SEFA for the oversight federal agency. Questioned Costs: None. Repeat finding: This is not a repeat finding. Recommendation: We recommend the Organization revise its SEFA preparation procedures to ensure that only allowable and reimbursable expenditures of federal awards are reported. Management should provide additional training to staff responsible for SEFA preparation and implement a formal review process to verify the accuracy of SEFA amounts. Views of Responsible Officials and Planned Corrective Action (unaudited): See Corrective Action Plan.

Finding 2024-002 – Significant Deficiency Award No.: Assistance List No. 15.555 and No. 15.074 Federal Grantor: U.S. Department of the Interior, Bureau of Reclamation, AL No. 15.074 Passed- Through the Del Puerto Water District Compliance Requirement: Other compliance requirements. Condition: The Schedule of Expenditures of Federal Awards (SEFA) was not complete, and expenditures reported on the SEFA were revised during the single audit. Criteria: 2 CFR Part 200, Subpart F (Uniform Guidance) Section 200.502 states, “The auditee should prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee’s financial statements.” Internal controls over preparation of the SEFA should be in place to ensure accrual basis expenses incurred under each federal program are properly reported as expenses on the SEFA and are properly reported as revenue in the financial statements prior to the start of the single audit. Cause: SEFA was not fully reconciled and finalized until after the single audit began. Effect: Expenses were omitted from the SEFA that should have been included and other expenses were included on the SEFA that were not eligible. The SEFA had to be revised for multiple grants over the course of the audit. This delayed the audit testing and major program determination process and could have resulted in the wrong programs being tested as major programs and the single audit not complying with the Uniform Guidance. Context: The District’s Finance Department was not informed of grant amendments that changed the amount of federal funding available. The expenses reported on the SEFA were revised during the single audit as follows. • AL No. 15.555 San Joaquin River Restoration Program Poso Canal Bridge Replacement: The District estimated additional reimbursable costs of $30,335 existed for the Poso Canal Bridge Replacement grant under a potential new $990,000 grant amendment that was to be signed by the USBR in 2025. The amendment was not approved for the Poso Canal Bridge Replacement but the District included the additional reimbursable expenses on the SEFA. The expenses on the SEFA had to be reduced to reflect the eligible federal grant maximum reimbursable expenses under the approved grant agreement at year-end. • AL No. 15.704 Small Surface Water and Groundwater Storage Projects Orestimba Creek Recharge and Recovery Expansion: An additional grant amendment was identified during the single audit that authorized an additional $1,262,928 of federal funding. The District had eligible expenses during the period of performance to fully claim the additional funding, but did not include the expenses on the SEFA. Recommendation: We recommend additional review procedures be implemented to ensure the SEFA is complete and accurate when the single audit begins, which includes working with program managers to identify each grant awarded, obtain current executed grant agreements and amendments, reconciling all expenses incurred under each federal awards down to the invoice, payroll check and lowest level of any other costs claimed, cutting-off each expense at year-end and claiming the reconciled qualifying expenses within 45 days after quarter end. At year-end, programs should be reviewed for cost adjustments, extensions, and other changes that should be reflected on the SEFA when reconciling expenses for the SEFA. Separate general ledger program codes should be used for each grant on the SEFA that summarizes expenses down to the individual invoice level that should be provided to the auditor for the single audit. If overclaimed amounts are identified, the grantor and/or pass-through agency should be contacted to determine whether to return the funds or apply the overclaimed amounts to future claims. Views of Responsible Officials and Planned Corrective Actions: Management’s response and planned corrective action is included in the Corrective Action Plan included at the end of the report.

Finding 2024-002 – Significant Deficiency Award No.: Assistance List No. 15.555 and No. 15.074 Federal Grantor: U.S. Department of the Interior, Bureau of Reclamation, AL No. 15.074 Passed- Through the Del Puerto Water District Compliance Requirement: Other compliance requirements. Condition: The Schedule of Expenditures of Federal Awards (SEFA) was not complete, and expenditures reported on the SEFA were revised during the single audit. Criteria: 2 CFR Part 200, Subpart F (Uniform Guidance) Section 200.502 states, “The auditee should prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee’s financial statements.” Internal controls over preparation of the SEFA should be in place to ensure accrual basis expenses incurred under each federal program are properly reported as expenses on the SEFA and are properly reported as revenue in the financial statements prior to the start of the single audit. Cause: SEFA was not fully reconciled and finalized until after the single audit began. Effect: Expenses were omitted from the SEFA that should have been included and other expenses were included on the SEFA that were not eligible. The SEFA had to be revised for multiple grants over the course of the audit. This delayed the audit testing and major program determination process and could have resulted in the wrong programs being tested as major programs and the single audit not complying with the Uniform Guidance. Context: The District’s Finance Department was not informed of grant amendments that changed the amount of federal funding available. The expenses reported on the SEFA were revised during the single audit as follows. • AL No. 15.555 San Joaquin River Restoration Program Poso Canal Bridge Replacement: The District estimated additional reimbursable costs of $30,335 existed for the Poso Canal Bridge Replacement grant under a potential new $990,000 grant amendment that was to be signed by the USBR in 2025. The amendment was not approved for the Poso Canal Bridge Replacement but the District included the additional reimbursable expenses on the SEFA. The expenses on the SEFA had to be reduced to reflect the eligible federal grant maximum reimbursable expenses under the approved grant agreement at year-end. • AL No. 15.704 Small Surface Water and Groundwater Storage Projects Orestimba Creek Recharge and Recovery Expansion: An additional grant amendment was identified during the single audit that authorized an additional $1,262,928 of federal funding. The District had eligible expenses during the period of performance to fully claim the additional funding, but did not include the expenses on the SEFA. Recommendation: We recommend additional review procedures be implemented to ensure the SEFA is complete and accurate when the single audit begins, which includes working with program managers to identify each grant awarded, obtain current executed grant agreements and amendments, reconciling all expenses incurred under each federal awards down to the invoice, payroll check and lowest level of any other costs claimed, cutting-off each expense at year-end and claiming the reconciled qualifying expenses within 45 days after quarter end. At year-end, programs should be reviewed for cost adjustments, extensions, and other changes that should be reflected on the SEFA when reconciling expenses for the SEFA. Separate general ledger program codes should be used for each grant on the SEFA that summarizes expenses down to the individual invoice level that should be provided to the auditor for the single audit. If overclaimed amounts are identified, the grantor and/or pass-through agency should be contacted to determine whether to return the funds or apply the overclaimed amounts to future claims. Views of Responsible Officials and Planned Corrective Actions: Management’s response and planned corrective action is included in the Corrective Action Plan included at the end of the report.

Identification as a Repeat Finding: No Finding: The Organization omitted the COVID-19 Economic Injury Disaster Assistance Loan (EIDL) from the initial draft of the SEFA presented to auditors. Criteria: 2 CFR 200.502 requires the auditee to report federal awards expended under loan programs including the balance of loans from previous years at the beginning of the audit period for which the Federal Government imposes continuing compliance requirements. The EIDL loan requires annual reporting to the Small Business Administration (SBA) as noted in prior year Finding 2023-002. Sample Size and Population: Not applicable Condition and Context: The EIDL loan totaling $584,853 was omitted from the draft SEFA provided to auditors on May 15, 2025. Effect: Exclusion understated total federal awards by 8%, changing the preliminary major-program determination and potentially reducing audit coverage below the required 40% threshold. Cause: The Organization did not identify ongoing compliance requirements associated with the EIDL loan. Management relied on SBA guidance that addresses PPP loans and other SBA programs but do not mention COVID-19 Relief EIDL programs, indicating a training gap in award-specific requirements. Recommendations: We recommend the Organization review loan agreements and program specific guidance for continuing compliance requirements before removing federal loans from the SEFA. Questioned Costs: None Management Response: Management response is reported in the “Corrective Action Plan” at the end of this report. Contact Person: Marc Cote, Executive Director 206-542-6644

2024-003 – Schedule of Expenditures of Federal Awards Federal program information: Funding Agency: All major program funding agencies Title: All major programs Assistance Listing Number: All major program ALN’s Award Periods: All major program award periods Criteria: 2 CFR section 200.510 (b), requires the Department to prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the Department’s financial statements and the SEFA must include the total awards expended as determined in accordance with 2 CFR §200.502. Condition: Certain federal programs on the SEFA had inaccurate Assistance Listing Numbers (ALN) and/or ALN’s were not included on the initial client prepared SEFA. In addition, several audit adjustments were needed to correct the expenditures reported on the SEFA. Furthermore, significant adjustments were needed to correct the ending and beginning receivable/unearned revenue balances. Lastly, several programs with different ALN’s are included in the same fund and were not broken out on the SEFA. Additional effort was needed to break out the cash receipts and expenditures for each of the different ALN’s. Context: Based on review of the ALN’s and the amounts reported on the SEFA. Questioned Costs: None. Cause: Internal controls were not designed and implemented to ensure accurate preparation of the SEFA. Effect: Revisions were needed to accurately prepare the SEFA by ALN and to ensure expenditures and receivable/unearned revenue balances were properly reported. Without proper internal controls there is the risk that errors and misstatements could exist and not be prevented or detected and corrected on a timely basis. Auditors’ Recommendation: Internal control procedures should be established to ensure that an accurate SEFA is prepared in accordance with 2 CFR §200.502. The SEFA should be reviewed by someone independent from the preparer to verify the accuracy of the information. Beginning balances should agree to the prior year balances. Accrual entries and expense balances should be finalized before the preparation of the SEFA. For the BIE School Grant fund, ensure expenditures and cash receipts are broken out by the different ALN’s on the SEFA. Duckwater Shoshone Tribe Governmental Services Department Schedule of Findings and Questioned Costs — continued For the Year Ended December 31, 2024 Section III — Federal Award Findings and Questioned Costs – continued 2024-003 – Schedule of Expenditures of Federal Awards – continued Management Response: The Finance Department will begin close out work on the year under audit as soon as the year ends, so that all accounts, including expenditures will be accurately adjusted before the SEFA is prepared. Finance will verify all Assistance Listing Numbers on the SEFA. Once the SEFA is prepared, it will be independently reviewed by a contracted CPA before submitting the SEFA to the auditor.

2024-003 – Schedule of Expenditures of Federal Awards Federal program information: Funding Agency: All major program funding agencies Title: All major programs Assistance Listing Number: All major program ALN’s Award Periods: All major program award periods Criteria: 2 CFR section 200.510 (b), requires the Department to prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the Department’s financial statements and the SEFA must include the total awards expended as determined in accordance with 2 CFR §200.502. Condition: Certain federal programs on the SEFA had inaccurate Assistance Listing Numbers (ALN) and/or ALN’s were not included on the initial client prepared SEFA. In addition, several audit adjustments were needed to correct the expenditures reported on the SEFA. Furthermore, significant adjustments were needed to correct the ending and beginning receivable/unearned revenue balances. Lastly, several programs with different ALN’s are included in the same fund and were not broken out on the SEFA. Additional effort was needed to break out the cash receipts and expenditures for each of the different ALN’s. Context: Based on review of the ALN’s and the amounts reported on the SEFA. Questioned Costs: None. Cause: Internal controls were not designed and implemented to ensure accurate preparation of the SEFA. Effect: Revisions were needed to accurately prepare the SEFA by ALN and to ensure expenditures and receivable/unearned revenue balances were properly reported. Without proper internal controls there is the risk that errors and misstatements could exist and not be prevented or detected and corrected on a timely basis. Auditors’ Recommendation: Internal control procedures should be established to ensure that an accurate SEFA is prepared in accordance with 2 CFR §200.502. The SEFA should be reviewed by someone independent from the preparer to verify the accuracy of the information. Beginning balances should agree to the prior year balances. Accrual entries and expense balances should be finalized before the preparation of the SEFA. For the BIE School Grant fund, ensure expenditures and cash receipts are broken out by the different ALN’s on the SEFA. Duckwater Shoshone Tribe Governmental Services Department Schedule of Findings and Questioned Costs — continued For the Year Ended December 31, 2024 Section III — Federal Award Findings and Questioned Costs – continued 2024-003 – Schedule of Expenditures of Federal Awards – continued Management Response: The Finance Department will begin close out work on the year under audit as soon as the year ends, so that all accounts, including expenditures will be accurately adjusted before the SEFA is prepared. Finance will verify all Assistance Listing Numbers on the SEFA. Once the SEFA is prepared, it will be independently reviewed by a contracted CPA before submitting the SEFA to the auditor.

2024 001 Reporting and Procurement U.S. Department of the Treasury: Passed-through State of New Jersey Department of Community Affairs: COVID 19 Coronavirus State and Local Fiscal Recovery Funds (ALN 21.027) Contract Number and Years: G2022 09 (03/02/2021 – 12/31/2026) Statistically Valid Sample: The sample was not intended to be, and was not, a statistically valid sample Repeat Finding: Yes (2023-001) Finding Type: Material Weakness, Material Noncompliance Criteria Reporting Per 2 CFR 200.502, the determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs. Generally, the activity pertains to events that require the non Federal statutes, regulations and the terms and conditions of Federal awards, such as: expenditures/expense transactions associated with awards including grants. Further, the Uniform Guidance compliance supplement notes, each recipient must report program outlays and program income on a cash or accrual basis, as prescribed by the Federal awarding agency. In accordance with the grant agreement and the reporting requirements for the State of New Jersey Department of Community Affairs, direct grants and pass through funds are fulfilled utilizing an advanced payment method and tracking reports. The grantee shall submit quarterly financial reports, in a format to be provided by the Department, and including the number of government full time employees responding to COVID 19 as supported by this funding. The reports are prepared and submitted to allow for relevant and reliable information to be provided to the Federal government or State of New Jersey for tracking purposes. The reports are the source documents for the grantee to prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the grantee’s financial statements in accordance with 2 CFR 200.502, Basis for determining Federal awards expended, for the SEFA. Procurement Non Federal entities other than states, including those operating Federal programs as subrecipients of states, must follow the procurement standards set out at 2 CFR sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable Federal statutes and the procurement requirements identified in 2 CFR Part 200. A non Federal entity must: 1. Meet the general procurement standards in 2 CFR section 200.318, which include oversight of contractors’ performance, maintaining written standards of conduct for employees involved in contracting, awarding contracts only to responsible contractors, and maintaining records to document history of procurements. 2. Conduct all procurement transactions in a manner providing full and open competition, in accordance with 2 CFR section 200.319. 3. Use the micro purchase and small purchase methods only for procurements that meet the applicable criteria under 2 CFR sections 200.320(a) (1) and (2). Under the micro purchase method, the aggregate dollar amount does not exceed $10,000 ($2,000 in the case of acquisition for construction subject to the Wage Rate Requirements (Davis Bacon Act)). Small purchase procedures are used for purchases that exceed the micro purchase amount but do not exceed the simplified acquisition threshold ($250,000). Micro purchases may be awarded without soliciting competitive quotations if the non Federal entity considers the price to be reasonable (2 CFR section 200.320(a)). If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources (2 CFR section 200.320(b)). In accordance with the grant agreement and the reporting requirements for the State of New Jersey Department of Community Affairs, recipients may use award funds to enter into contracts to procure goods and services necessary to implement one or more of the eligible purposes outlined in sections 602(c) and 603(c) of the Act and Treasury’s Interim Final Rule and Final Rule. As such, recipients are expected to have procurement policies and procedures in place that comply with the procurement standards outlined in the Uniform Guidance. Under the program, St. Joseph’s Health, Inc. must follow the procurement standards in 2 CFR sections 200.318 through 200.327, including ensuring that the procurement method used for the contracts are appropriate based on the dollar amount and conditions specified in 2 CFR section 200.320. Internal Control Additionally, in accordance with Federal requirements, a non Federal entity shall maintain internal controls over Federal programs designed to provide reasonable assurance that transactions are executed in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award that could have a direct and material effect on a Federal program. Condition and Context Reporting On a quarterly basis, St. Joseph’s Health, Inc. (the System) prepares and reports to New Jersey Department of Community Affairs (the Department) the program expenditures for Federal funding amounts on the tracking report of expenditures, which are then used to prepare the annual SEFA in conjunction with the general ledger detail at the end of the fiscal year. While expenditures per the SEFA as prepared by the System were accurate and the quarterly reporting was accepted by the State, the System’s expenditures per the report of expenditures continue to be based upon purchase order amounts, which include expenditures that were incurred subsequent to year end. Procurement Further, the System engaged multiple vendors for several projects under the G2022 09 grant that were above the $10K micro purchase threshold, but below the simplified acquisition threshold. However, the System did not obtain multiple quotes from different vendors to encourage fair competition in the market. The System’s policies and procedures to ensure compliance with the above compliance requirements did not include certain internal controls that were designed properly and operating effectively to ensure that the System properly reported costs on the report of expenditures or obtained the necessary quotes from potential bidders for procurements over the micro purchase threshold. Cause Management’s review of the submitted quarterly report of expenditures continuing not to be identified the need for a reconciliation of incurred expenditures and purchase order balances reported to the Department and as such, as there is a variance between the amounts reported on the SEFA and the amounts reported to the Department on the quarterly reports of approximately $2.1 million. We noted, however, that this variance did not represent any unallowable costs. Additionally, Management did not retain or obtain the required documentation indicating quotes from multiple vendors were obtained for the ongoing construction projects under the grant. Effect The System had a material variance in the amount of expenditures reported to the Department as compared to the SEFA and did not obtain multiple quotations from vendors when making selections for various projects ongoing under the Federal program. Questioned Costs None Recommendation Reporting We recommend that the System strengthen its processes and internal controls to ensure the tracking of each report of expenditures provided to the Department has a reconciliation of the amount of expenditures incurred in the period based upon the general ledger and accounting records, used to prepare the annual SEFA, as compared to the purchase order balances. Procurement We recommend that the System strengthen its processes and internal controls to ensure that all procurement related transactions are supported by the appropriate bidding documentation as required by the Uniform Guidance for each respective bidding threshold. View of Responsible Official Management agrees with the auditor’s recommendations and will strengthen its processes and internal controls to ensure the report of expenditures provided to the Department has a reconciliation of the amount of expenditures incurred in the period compared to the purchase order balances and all procurement transactions contain the required bidding documentation for each bidding threshold in accordance with the Uniform Guidance.

Assistance Number: 16.753 Congressionally Recommended Awards (CRA) Year: 2024 Name of Federal Agency: U.S. Department of Justice Name of Pass-Thru Agency: Direct award Type of Compliance Finding: B – Allowable Costs/Cost Principles Condition: 2 CFR Part 200, section 200.510 requires the City to prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the financial statements. The City’s Schedule of Expenditures of Federal Awards (SEFA) for the year ended December 31, 2024, included expenditures that were incurred in the prior fiscal year. These prior year expenditures were not reported on the 2023 SEFA and incorrectly reported in the current year Criteria: An entity that expends federal awards must have controls in place that would enable the entity to prepare a SEFA including controls that determine the accuracy of the amount of expenditures reported for each federal program. In accordance with 2 CFR §200.502(a), expenditures are to be reported on the SEFA in the fiscal year in which the activity related to the federal award occurs. Questioned Costs: N/A Context: The City did not report $705,791 of expenses on the 2023 SEFA and instead reported these amounts on the 2024 SEFA. Cause: The error occurred due to inadequate review procedures over the preparation of the SEFA. Specifically, the City did not reconcile SEFA amounts to program reports to ensure expenditures were reported correctly at year-end. Effect: The SEFA understated expenditures in the prior year and overstated expenditures in the current year, potentially misleading federal agencies and pass-through entities about the City’s use of federal funds. This could impact risk assessments, reporting accuracy, and decisions regarding future funding. The lack of an accurate and complete SEFA could lead to grant noncompliance and noncompliance with Subpart F, Audit Requirements, of 2 CFR Part 200. Recommendation: We recommend the City strengthen its SEFA preparation and review process by: • Reconciling federal expenditures reported on the SEFA to the general ledger by program and grant year. • Implementing a secondary review to verify that no prior year expenditures are included in current year reporting. • Providing staff with training on SEFA preparation requirements under 2 CFR Part 200. Views of Responsible Officials (Unaudited): City leadership agrees with the auditor’s finding and appreciates the recommendations for improvements. The same root causes identified in Finding 2024-003 – system transition, staff turnover, and decentralized grant management – contributed to this compliance issue. The City recognizes the need for stronger internal controls, centralized oversight, and consistent review of grant management.

#2024-007 – Major Federal Award Finding – Federal Grants Management Nature of Finding: Federal Grants Management – Preparation and Maintenance of Schedule of Expenditures of Federal Awards Compliance Finding and Significant Deficiency in Internal Controls over Compliance Criteria/Condition: Per 2 CFR 200.510(b), the auditee must prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements, which must include the total federal awards expended, as determined in accordance with §200.502. For SEFA reporting, the components of the SEFA were not accurately maintained. Cause/Context: While the Organization has a policy related to grant administration and tracking of expenditures, the procedures and controls relating to the policy were not properly implemented during 2024. Effect: Expenditures for the Coronavirus State and Local Fiscal Recovery Funds grants were not accurately reported on the auditee-prepared SEFA. The SEFA presented has been adjusted for these errors. Controls in place did not sufficiently ensure the completeness and accuracy of the SEFA. Recommendation: We recommend the Organization enhance its procedures and controls to ensure data accumulated to prepare the SEFA is complete and accurate. Views of Responsible Officials and Planned Corrective Actions: We lacked consistent grant-level financial reporting, which made preparation of the required Schedule of Expenditures of Federal Awards (SEFA) difficult and time consuming. We have improved our accounting systems and can now procedure regular internal financial reports by grant. All grant managers are given a monthly transaction listing for their grants to ensure transactions are posted to the correct grant. They are also given monthly financial statements for each grant to reconcile to their records. Financial reporting will be done on a timely basis, ideally no more than 5 days after the month closing so grant managers can reconcile their records.

Finding #2024-003 – Significant Deficiency and Other Noncompliance. Applicable federal programs: U. S. Department of Agriculture, State Administrative Matching Grants for Supplemental Nutrition Assistance Program (SNAP Cluster), Assistance listing #: 10.561, Passed through Texas Health and Human Services, Contract #: 529-16-002-00002, Contract Year: 10/01/23 – 09/30/24 and 10/01/24 – 09/30/25, Passed through New York Office of Temporary and Disability Assistance and City Harvest, Inc., Contract #: None, Contract Year: 10/01/23 – 09/30/24, Passed through New York Office of Temporary and Disability Assistance, Contract #: TDA01 – C00043GM-3410000, Contract Year: 10/010/24 – 09/30/25, Passed through The Regents of the University of California, Contract #: A22-1456-S002, Contract Year: 10/01/23 – 09/30/24, Passed through Pennsylvania State University, Contract #: S006438-COP-BRB, Contract Year: 10/01/24 – 09/30/25, Passed through New Mexico State University, Contract #: GSA 22-630-9000-0023, Contract Years: 10/01/23 – 09/30/24 and 10/01/24 – 09/30/25. Department of Treasury, Passed through Houston Food Bank, COVID-19 – Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing #: 21.027, Contract #: HHS000493200003, Contact Year: 02/08/23 – 12/31/25. Applicable state programs: Texas A&M AgriLife Extension Service, Surplus Agricultural Products Grant Program, Contract #: GA-555-01, Contract Years: 09/01/23 – 08/31/24 and 09/01/24 – 08/31/25. Criteria: Reporting – Management is responsible for preparing the schedule of expenditures of federal awards in accordance with §200.502 of 2 CFR Part 200 Uniform Administrative Requirements Cost Principles and Audit Requirements for Federal Awards and the Schedule of Expenditures of State Awards (SESA) in Accordance with Texas Grant Management Standards, which requires costs to be reported in accordance with generally accepted accounting principles (GAAP). Condition and context: During our testing of the Schedule of Expenditures of Federal Awards (SEFA) and the SESA, we noted that the expenditures were not reported in accordance with GAAP. An adjustment of $268,000 was recorded to properly state the expenditures. Cause: Brighter Bites reported the expenditures based on the cash basis grant billings. Effect: Failure to have an effective system of internal control over the preparation of the SEFA and SESA resulted in expenditures being understated. Recommendation: Implement policies and procedures to ensure that all expenditures have been properly recorded in accordance with GAAP in the SEFA and SESA. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding 2024-001 – ReportingInformation of the federal program:Federal Grantor: Department of Health and Human Services (HHS)Assistance Listing No.: 93.391, COVID-19 Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare CrisisPass-Through Grantor: Chicago Department of Public HealthFederal Grantor: Department of Health and Human Services (HHS)Assistance Listing No.: 93.323, COVID-19 Epidemiology and Laboratory Capacity for Infectious DiseasesPass-Through Grantor: Chicago Department of Public HealthCriteria or specific requirement (including statutory, regulatory, or other citation):Section 200.303 of the Uniform Guidance states the following regarding internal control: “The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.”Condition:Certain expenditures related to the COVID-19 Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crisis and the COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases were overstated by $347,352 and $164,120, respectively, on the preliminary schedule of expenditures of federal awards (the Schedule) provided by management due to the inappropriate classification of costs within the general ledger; the final Schedule was corrected.Cause:Endeavor’s internal controls over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards.Effect or Potential Effect:Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes.Questioned costs:None.Context:Endeavor reported expenditures of $872,758 on the preliminary SEFA, but on the final SEFA reported $525,406 related to the COVID-19 Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crisis. Endeavor reported expenditures of $1,233,464 on the preliminary SEFA, but on the final SEFA reported $1,069,344 related to the COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases.Identification as a repeat finding, if applicable:This is a repeat finding of 2023-001.Recommendation:Management should implement internal controls to ensure amounts are appropriately accumulated and reported on the Schedule and all federal expenditures are appropriately identified and reported on the Schedule.Views of responsible officials:Management acknowledges the findings related to SEFA reporting. The issue arose from miscommunication in determining which expenditures should be reported for the programs in question. We recognize the importance of accurate and complete reporting. We will enhance our review and communication processes to ensure clarity between program managers and the finance team when identifying reportable expenditures. We have already taken steps to address this issue by:• Creating a new policy and procedure for SEFA reporting and establishing clear guidance and documentation for expenses that should be included in the SEFA.• Implementing an expanded review process to ensure accuracy prior to submission.

Finding Number: 2024-007 Repeat Finding: Yes Type of Finding: Significant Deficiency in Internal Control and Nonmaterial Noncompliance Description: Schedule of Expenditures of Federal Awards Awareness and Preparation Major Programs: AL#93.243 - Substance Abuse and Mental Health Services – Direct Award (DHHS) – Award numbers: 1H79SM087536-01, 5H79SM087536-02, 1H79SM087590-01, 5H79SP081724-05, 5H79SM082160-04, 5H79SM082160-05, 5H79SP082229-03, 5H79SP082229-04, 1H79SM088765-01, 1H79SM088765-02, 1H79TI085542-01, 5H79TI085542-02, 5H79T086128-02 and Pass-through awards CD9-23-4425 and CD9-25-4425 AL#93.772 - Tribal Public Health Capacity Building and Quality Improvement Umbrella Cooperative Agreement – Direct Award (DHHS) – Award numbers: 6 NU38TO000023-01-00, 6 NU38TO000023-02-00 and 6 NU38OT000257-05-03 AL#93.788 – Opioid STR – Direct Award (DHHS) – Award numbers: 5H79TI083088-02, 5H79TI083088-03, 6H79TI085684-01M003, 1H79T1087860-01 and Pass-through award CD9-24-5124 AL#93.859 – Biomedical Research and Research Training – Direct Award (DHHS) – Award numbers: 5S06GM142115-03 and 5S06GM142115-04 Questioned Costs: None How the questioned costs were computed: N/A Compliance Requirement: Reporting Condition: The Organization did not have all federal expenditures recorded in their trial balance and did not have accurate records of all expenditures spent during the audit period. In addition, it did not have all of the necessary information or training to create the Schedule of Expenditures of Federal Awards. Criteria: Under 2 CFR Part 200.502, the auditee must prepare the Schedule of Expenditure of Federal Awards to cover the appropriate audit period and to include all applicable federal expenditures expended during the audit period. Cause: The Organization does not have processes in place to properly track award numbers, award periods, assistance listing numbers and grant spending. Effect: The Organization was unable to provide the auditors with a complete Schedule of Expenditures of Federal Awards (including all grants with federal awards, all assistance listing numbers, total amount of federal awards expended) and could not verify the completeness of expenditures recorded in their financial statements provided for the audit. Recommendation: We recommend the Organization create processes and procedures that capture all federal funding received and track applicable expenditures. This report should be reconciled regularly (at least monthly) when requests for reimbursement are made and should include all applicable information necessary to identify the funding agency, assistance listing number, and any other pertinent passthrough information. With this process in place, the Organization will be better able to track and monitor grant funding, plan future projects or future funding needs, and prepare for the annual audit. Views of Responsible Officials: Management agrees with the finding and has committed to a corrective action plan.

Program: Temporary Assistance for Needy Families Assistance Listing No.: 93.558 Federal Grantor: U.S. Department of Health and Human Services Passed-through: County of Sacramento Award No. and Year: DHA-PRTS-NM-07-25-A1; FY 2024 Compliance Requirement: Other - Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) §200.510(b) - Schedule of Expenditures of Federal Awards Type of Finding: Material Weakness in Internal Control Over Compliance Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) §200.510(b) states that the auditee (the Organization) must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee’s financial statements, which must include the total federal awards expended (including amounts provided to subrecipients) as determined in accordance with §200.502. In addition, section 200.303 of the Uniform Guidance state that that recipients and subrecipients must establish effective internal control over the federal awards, including controls over the accuracy of program information and expenditure amounts. Condition: During our audit procedures performed over the SEFA and expenditures reported for the Temporary Assistance for Needy Families program we noted the Organization overstated expenditures totaling $138,217. The December 31, 2024 SEFA was corrected for this reporting error. Cause: The Organization did not have adequate internal controls to ensure the Schedule was prepared completely and accurately. Effect: Prior to the correction, expenditures for the Temporary Assistance for Needy Families program were overstated by $138,217. Questioned Costs: No questioned costs were identified as a result of our procedures. Context/Sampling: No sampling was used. Repeat Finding from Prior Years: No. Recommendation: We the recommend the Organization enhance internal controls to ensure federal expenditures are reported accurately and completely on the SEFA in accordance with the Uniform Guidance. Views of Responsible Officials: Management agrees. See separately issued Corrective Action Plan.