April 30, 2026 Finding Number: 2025-001: Significant Deficiency in Internal Control / Immaterial Noncompliance – Activities Allowed/Allowable Costs Finding Condition: Allowable costs charged to the grant were coded to an incorrect functional expense within the grant. Planned Corrective Action: Although the allowable cost sampled was charged to the correct federal cost category, it was inadvertently charged to the incorrect internal functional account code. We have instituted more rigorous reviews of all elements of account coding during the invoice review process prior to posting invoices to the Accounts Payable ledger. We also note that the cost was reported to the correct cost category on quarterly reports. Responsible Contact Person: Shamar Herron (Executive Director) Sherron@mwse.org Anticipated Completion Date: Effective Immediately Respectfully, Shamar Herron