Corrective Action Plans

Finding 538722 (2024-002)

Material Weakness 2024

IN

Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles § 200.208 § 200.303 § 200.403

FINDING 2024-002 Finding Subject: Special Education Cluster (IDEA) - Earmarking Contact Person Responsible for Corrective Action: Bethany Cmar Contact Phone Number and Email Address: 765-641-2126 (Bcmar@acsc.net) Views of Responsible Officials: We concur with the finding. Description of Corrective A...

FINDING 2024-002 Finding Subject: Special Education Cluster (IDEA) - Earmarking Contact Person Responsible for Corrective Action: Bethany Cmar Contact Phone Number and Email Address: 765-641-2126 (Bcmar@acsc.net) Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: When it comes to expenditures for non-public schools, ACS will assign a unique tracking number to each school, allowing expenditures to be easily traced for this requirement. The overall earmarking requirements will be compiled annually by the Special Education Director and sent to the CFO for review and approval, ensuring compliance with the requirements. Anticipated Completion Date: March 31, 2025

View Audit 349447

Finding 538681 (2024-003)

Significant Deficiency 2024

Westchester Jewish Community Services, Inc.

NY

Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.403

Finding 2024-003, Unallowable Expense (Assistance Listing 93.696) Persons Responsible: Irene Math, Chief Financial Officer, Jessica Schneibolk, Controller Comment: Per 2 CFR § 200.403, costs charged to a federal award must be necessary, reasonable, and allocable to the program. Assistance Listing...

Finding 2024-003, Unallowable Expense (Assistance Listing 93.696) Persons Responsible: Irene Math, Chief Financial Officer, Jessica Schneibolk, Controller Comment: Per 2 CFR § 200.403, costs charged to a federal award must be necessary, reasonable, and allocable to the program. Assistance Listing Number 93.696, Certified Community Behavioral Health Clinic, requires that costs allocated to the program meet these criteria to ensure compliance with federal regulations. Response: WJCS acknowledges the audit finding related to an unallowable expense charged to the Certified Community Behavioral Health Clinic program. We agree with the recommendation to strengthen internal controls and have identified the cause as an isolated error due to invoices posting in the ledger prior to approval. To address this, we updated the accounts payable system so invoices will not post to the general ledger until approved. Estimated Completion Date: These corrective actions were implemented in February 2025.

View Audit 349416

Finding 538679 (2024-002)

Significant Deficiency 2024

Westchester Jewish Community Services, Inc.

NY

Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.430

Finding 2024-002, Timesheet – Timekeeping (Assistance Listing 16.575 and 93.696) Persons Responsible: Irene Math, Chief Financial Officer, Jessica Schneibolk Controller Comment: Per 2 CFR § 200.430 requires that the distribution of salary and wages charged to federal awards be based on actual em...

Finding 2024-002, Timesheet – Timekeeping (Assistance Listing 16.575 and 93.696) Persons Responsible: Irene Math, Chief Financial Officer, Jessica Schneibolk Controller Comment: Per 2 CFR § 200.430 requires that the distribution of salary and wages charged to federal awards be based on actual employee activity as reflected in personnel activity reports (timesheets), prepared after-the-fact, and includes the total activity for which employees were compensated. Response: In January 2025, WJCS implemented an automated time and attendance system for staff to track time which integrates with the payroll and financial systems to ensure appropriate allocations to Federal awards. Prior to implementation of the new system weekly manual timesheets were used to track staff time and attendance on Federal contracts. However, these manual timesheets were not integrated into a standard agency-wide payroll processing system. The new system enhancements to payroll tracking will allow WJCS to completely and accurately allocate payroll costs to grants with fewer mechanical steps which increase the risk of miscalculations. Estimated Completion Date: The agency-wide time and attendance system was implemented in January 2025.

View Audit 349416

Finding 538678 (2024-001)

Significant Deficiency 2024

Westchester Jewish Community Services, Inc.

NY

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting § 200.302

Finding 2024-001, Expense Allocations - Financial Management (Assistance Listing 16.575) Persons Responsible: Irene Math, Chief Financial Officer, Jessica Schneibolk, Controller Comment: Per 2 CFR § 200.302(a) (Financial Management), all recipient and subrecipient financial management systems mus...

Finding 2024-001, Expense Allocations - Financial Management (Assistance Listing 16.575) Persons Responsible: Irene Math, Chief Financial Officer, Jessica Schneibolk, Controller Comment: Per 2 CFR § 200.302(a) (Financial Management), all recipient and subrecipient financial management systems must be sufficient to track expenditures and establish that funds have been used in accordance with federal statutes, regulations, and the terms and conditions of the federal award. Response: WJCS acknowledges the audit finding regarding the misallocation of occupancy expense. We are committed to strengthening our internal controls by implementing a more structured review process for expense allocations and will provide staff training on accurate cost classification. In addition, we will formalize documentation procedures to support updated automated expense allocations. Estimated Completion Date: The additional review procedures will be implemented by March 31, 2025, and will work to update financial system expense allocations by June 1, 2025

View Audit 349416

Finding 538669 (2024-001)

Significant Deficiency 2024

City of Baldwin Park

CA

Questioned Costs Allowable Costs / Cost Principles § 200.430

2024-001 - Allowable Costs/Cost Principles – Internal Control and Compliance over Payroll Expenditures (Significant Deficiency) Condition: Community Development Block Grants-Entitlement Grants Cluster During the audit period, the City has required all Housing Department staff, including administ...

2024-001 - Allowable Costs/Cost Principles – Internal Control and Compliance over Payroll Expenditures (Significant Deficiency) Condition: Community Development Block Grants-Entitlement Grants Cluster During the audit period, the City has required all Housing Department staff, including administrative support staff, to fill out project activity timesheets reflecting the actual hours worked on the program. The City performed reconciliation on the staff payroll charges to reflect actual hours worked. However, not all staff members have fully complied with this policy. Payroll costs for the fourteen (14) out of forty (40) payroll samples tested were allocated to programs based on percentages provided by management. These allocations were not supported by approved time samples or updated cost allocation plan, nor were they reconciled to actual time spent on the various programs. Employee timesheets did not record the actual labor efforts expended on the grant. Housing Voucher Cluster During the audit period, the City has required all Housing Department staff, including administrative support staff, to fill out project activity timesheets reflecting the actual hours worked on the program. The City performed reconciliation on the staff payroll charges to reflect actual hours worked. However, not all staff members have fully complied with this policy. Payroll costs for the thirteen (13) out of forty (40) payroll samples tested were allocated to programs based on percentages provided by management. These allocations were not supported by approved time samples or updated cost allocation plan, nor were they reconciled to actual time spent on the various programs. Employee timesheets did not record the actual labor efforts expended on the grant. Management concurs. Corrective Actions: Management has enforced the existing policy, which mandates that employees funded by federal grants document the actual time they spend working on those grants. The staff responsible for reporting the actual time spent on federally funded programs dedicate a significant portion of their time to these programs. However, there are administrative staffs that provide support towards these programs, and tracking their time spent towards the time spent on the program would require more time and effort than the minimal allocation the City allocated for each administrative staff as appropriated in the Adopted Budget. The City is in the process of implementing an indirect cost allocation plan to allocate the administrative staff time and anticipates this will be in effect in fiscal year 2025-26. In the meantime, staff will make every effort to document the actual time spent working on the grants. Name of Responsible Person: Ron Garcia, Director of Community Development Ryan Mulligan, Housing Manager Rose Tam, Director of Finance Albert Trinh, Accounting Manager

View Audit 349408 Questioned Costs: $1

Finding 538663 (2024-004)

Significant Deficiency 2024

Municipality of Toa Alta

PR

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting

MUNICIPALITY OF TOA ALTA CORRECTIVE ACTION PLAN SINGLE AUDIT REQUIREMENTS AS OF JUNE 30, 2024 FINDING 2024-004: U.S. DEPARTMENT OF THE TREASURY CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS (ALN 21.027) PASS-THROUGH P.R. FISCAL AGENCY AND FINANCIAL ADVISORY AUTHORITY REPORTING - REPORTING (L) SI...

MUNICIPALITY OF TOA ALTA CORRECTIVE ACTION PLAN SINGLE AUDIT REQUIREMENTS AS OF JUNE 30, 2024 FINDING 2024-004: U.S. DEPARTMENT OF THE TREASURY CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS (ALN 21.027) PASS-THROUGH P.R. FISCAL AGENCY AND FINANCIAL ADVISORY AUTHORITY REPORTING - REPORTING (L) SIGNIFICANT DEFICIENCY AND NONCOMPLIANCE Corrective Action: The Finance Director is aware of the compliance requirement. We gave instructions to the accounting staff to maintain a dateline control sheet to ascertain that required reports for all grants were submitted within the due date. Statement of Concurrence and Responsible Persons: We concur with the auditors' finding. Aracelis Suárez Finance Director Implementation Date: Fiscal year 2024-2025

View Audit 349402

Finding 538657 (2024-004)

Significant Deficiency 2024

Palomar Health

CA

Allowable Costs / Cost Principles Procurement, Suspension & Debarment Subrecipient Monitoring

FINDING 2024-004 – Significant Deficiency in Internal Controls over Compliance – Allowable Cost Principles – Calculation of Project Costs Audit Recommendation: Moss Adams recommends that management perform an in-depth review of all project costs, including a review of any data used in its calculati...

FINDING 2024-004 – Significant Deficiency in Internal Controls over Compliance – Allowable Cost Principles – Calculation of Project Costs Audit Recommendation: Moss Adams recommends that management perform an in-depth review of all project costs, including a review of any data used in its calculation, prior to the submission of project applications to FEMA or other federal agencies. Corrective Action Plan: PH management will put incorporate additional review processes for reporting to external agencies involving project costs and calculations. This will involve secondary review to identify potential errors. Contact Person Responsible for Corrective Action Plan: Melissa Wallace, Vice President of Finance, and Maritess Delosantos, Director of Finance Special Projects Anticipated Completion of Corrective Action Plan: June 2025 Status: 75% completed The District is continually improving processes to correct and prevent these deficiencies from recurring.

View Audit 349399

Finding 538650 (2024-003)

Material Weakness 2024

Sioux Falls School District 49-5

SD

Questioned Costs Allowable Costs / Cost Principles Procurement, Suspension & Debarment

Identifying Number: 2024-003: U.S. Department of Education: Education Stabilization Fund: Institutional Portion – 84.425F Finding: The District used outstanding purchase order obligations to request reimbursement at the end of the liquidation period, but did not spend all of the outstanding purchase...

Identifying Number: 2024-003: U.S. Department of Education: Education Stabilization Fund: Institutional Portion – 84.425F Finding: The District used outstanding purchase order obligations to request reimbursement at the end of the liquidation period, but did not spend all of the outstanding purchase orders; therefore, receiving reimbursement for items that were never purchased. Corrective Action Taken or Planned: The School will designate finance staff to review reimbursements to ensure they have proper expenses as backup. A further review by the School District will help to ensure that funding is spent on items and requests for reimbursement only after expenses have been paid. Contact person: Mike Stephen, Director of Accounting Status of finding – The above corrective actions will be implemented beginning April 1, 2025.

View Audit 349380 Questioned Costs: $1

Finding 538649 (2024-002)

Material Weakness 2024

Sioux Falls School District 49-5

SD

Questioned Costs Procurement, Suspension & Debarment Allowable Costs / Cost Principles

– 84.425F Finding: Two errors were noted related to period of performance: 1) the lost revenue calculation was completed in October 2023, which was after the June 30, 2023 period of performance date; and 2) the District also spent money on expenses for the program in November 2023 and January 2024, ...

– 84.425F Finding: Two errors were noted related to period of performance: 1) the lost revenue calculation was completed in October 2023, which was after the June 30, 2023 period of performance date; and 2) the District also spent money on expenses for the program in November 2023 and January 2024, which was after the 120-day liquidation period. Corrective Action Taken or Planned: The School will create and maintain a funding schedule according to the grant agreements. The schedule will be reviewed by various finance staff members for timing of grant reimbursements and deadlines. Contact person: Mike Stephens, Director of Accounting Status of finding – The above corrective actions will be implemented beginning April 1, 2025.

View Audit 349380 Questioned Costs: $1

Finding 538575 (2024-011)

Material Weakness 2024

City of Montgomery, Alabama

AL

Allowable Costs / Cost Principles Procurement, Suspension & Debarment Material Weakness

Management concurs. The City will update the fiscal policies and procedures manual to incorporate and clearly define the control system of approvals.

View Audit 349361

Finding 538539 (2024-071)

Significant Deficiency 2024

State of Maine

ME

Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.303 § 200.403

Department: Health and Human Services Title: Internal control over Medicaid paid medical claims needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department will require the vendor to create a procedure to be used to prepare this report which will ...

Department: Health and Human Services Title: Internal control over Medicaid paid medical claims needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department will require the vendor to create a procedure to be used to prepare this report which will be tested and validated by the vendor and the Office of MaineCare Services. Completion Date: June 1, 2025 Agency Contact: Michelle Probert, Director, Office of MaineCare Services, DHHS, 207-287-2093

View Audit 349360

Finding 538535 (2024-070)

Significant Deficiency 2024

State of Maine

ME

Allowable Costs / Cost Principles Internal Control / Segregation of Duties HUD Housing Programs § 200.303

Department: Health and Human Services Title: Internal control over Medicaid drug rebates needs improvement Questioned Costs: None Status: Management’s opinion is that corrective action is not required Corrective Action: PRIMS (Pharmacy Rebate Information Management System), provided to the State of ...

Department: Health and Human Services Title: Internal control over Medicaid drug rebates needs improvement Questioned Costs: None Status: Management’s opinion is that corrective action is not required Corrective Action: PRIMS (Pharmacy Rebate Information Management System), provided to the State of Maine by a third-party vendor, is a proven system in production in many locations and PRIMS has passed a wide variety of Federal and State audits. The drug rebate program is complex and there are numerous steps in the process which have already been demonstrated and/or provided to the Office of State Auditor. The controls described to the State Auditor previously (Pre-invoicing controls, pharmacy claims controls and medical claims controls) address all three of the Auditors’ Recommendations. Completion Date: N/A Agency Contact: Michelle Probert, Director, Office of MaineCare Services, DHHS, 207-287-2093

View Audit 349360

Finding 538531 (2024-069)

Significant Deficiency 2024

State of Maine

ME

Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.303 § 200.403

Department: Health and Human Services Title: Internal control over Medicaid cost of care assessments and deductions needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Office of MaineCare Services will request an update to the Retroactive Cost of Car...

Department: Health and Human Services Title: Internal control over Medicaid cost of care assessments and deductions needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Office of MaineCare Services will request an update to the Retroactive Cost of Care report to correct the logic that resulted in a missed cost of care change. Completion Date: June 1, 2025 Agency Contact: Ian Yaffe, Director, Office for Family Independence, DHHS, 207- 592-1481

View Audit 349360

Finding 538527 (2024-068)

Significant Deficiency 2024

State of Maine

ME

Allowable Costs / Cost Principles Eligibility Internal Control / Segregation of Duties § 200.303

Department: Health and Human Services Title: Internal control over Medicare Part B premium payments needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The MaineCare Program management team will work with the Data Team to explore opportunities to improve...

Department: Health and Human Services Title: Internal control over Medicare Part B premium payments needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The MaineCare Program management team will work with the Data Team to explore opportunities to improve the report to reduce duplication of effort and improve overall efficiency and effectiveness of the review. The MaineCare Program management team will review relevant guidance material, clarify expectations and adjust standard operating procedures for further efficiency and oversight improvements. Completion Date: June 30, 2025 Agency Contact: Ian Yaffe, Director, Office for Family Independence, DHHS, 207- 592-1481

View Audit 349360

Finding 538519 (2024-065)

Significant Deficiency 2024

State of Maine

ME

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.303 § 200.403

Department: Health and Human Services Administrative and Financial Services Title: Internal control over the Foster Care – Title IV-E and Adoption Assistance – Title IV-E programs FMAP rates needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Informa...

Department: Health and Human Services Administrative and Financial Services Title: Internal control over the Foster Care – Title IV-E and Adoption Assistance – Title IV-E programs FMAP rates needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Information Services Unit Manager will organize an annual meeting to include the OCFS COO, the OCFS PFO and appropriate representatives from DAFS, on or about August 1st to formally discuss the FMAP and agree on its implementation. Meeting will be set as an auto reoccurring meeting updated annually to include the appropriate staff to attend. A Placeholder for the Annual FMAP update will be entered annually into Katahdin's life cycle management system (Octane) to allow the FMAP update activity to be formally tracked. A screenshot of the entered FMAP rate from Katahdin will be sent out to the same group after the meeting when the rate is entered into the Katahdin system. Completion Date: April 1, 2025, first and second item, and August 15, 2025, third item Agency Contact: Robert Blanchard, Associate Director, OCFS, DHHS, 207-624-7955

View Audit 349360

Finding 538518 (2024-064)

Material Weakness 2024

State of Maine

ME

Questioned Costs Allowable Costs / Cost Principles § 200.303 § 200.403

Department: Health and Human Services Title: Internal control over the Adoption Assistance – Title IV-E eligibility and benefit determination process needs improvement Questioned Costs: Known: ALN 93.659 $10,860 Likely: Undeterminable Status: Corrective action in progress Corrective Action: The Adop...

Department: Health and Human Services Title: Internal control over the Adoption Assistance – Title IV-E eligibility and benefit determination process needs improvement Questioned Costs: Known: ALN 93.659 $10,860 Likely: Undeterminable Status: Corrective action in progress Corrective Action: The Adoption Program Manager will continue to review the final Adoption Assistance Packet for completeness before approval. The Adoption Manager will review the most current Level of Care in foster care in the Child Welfare System to verify proper subsidy rates prior to approval. The Adoption Manager will work with the OCFS team on implementing and training on the updated Adoption Policy. The Office of Child and Family Services will organize a workgroup to evaluate how to improve the financial review process and define any changes needed to be implemented in Katahdin to support validating payments are processed appropriately. All children entering adoption must have a completed determination by the District FRS for verification of third-party benefits/Social Security. Effective date of last audit 2024, the documentation procedure was changed to clearly shows any determination. This is documented within the adoption application for all cases. This verification is used to determine an appropriate adoption assistant rate. Completion Date: March 1, 2025, first, second and fifth items, September 1, 2025, third item, and November 1, 2025, fourth item Agency Contact: Karen Benson, Adoption Program Manager, OCFS, DHHS, 207-561-4208

View Audit 349360 Questioned Costs: $1

Finding 538516 (2024-063)

Material Weakness 2024

State of Maine

ME

Questioned Costs Allowable Costs / Cost Principles Eligibility § 200.303 § 200.403

Department: Health and Human Services Title: Internal control over the Foster Care – Title IV-E and Adoption Assistance – Title IV-E eligibility and benefit determination process needs improvement Questioned Costs: Known: ALN 93.658 $4,647 ALN 93.659 $9,367 Likely: Undeterminable Statu...

Department: Health and Human Services Title: Internal control over the Foster Care – Title IV-E and Adoption Assistance – Title IV-E eligibility and benefit determination process needs improvement Questioned Costs: Known: ALN 93.658 $4,647 ALN 93.659 $9,367 Likely: Undeterminable Status: Corrective action in progress Corrective Action: The Title IV-E Program Manager will continue to educate and train the FRS on the proper completion of the Title IV-E initial determination checklists for their FRS files, including the importance of signing off on those checklists for the initial determinations that they have completed. The Title IV-E Program Manager will conduct quarterly quality assurance (QA) reviews in the District that this issue was found, randomly pulling 10 cases to ensure compliance. When FRS staff conduct QA reviews, they will continue to be advised to monitor if signatures are present on the Title IV-E initial determination checklist. Reviewing if a checklist is signed is an existing question within our internal QA review document. The Department will establish a work group to identify the challenges of managing overpayments made to foster parents and to develop a process to minimize this problem. The Department will finalize and receive approval of the protocol/process form managing overpayments. The Department will implement the new overpayments management procedures. Completion Date: March 26, 2025, March 31, 2025, July 1, 2025, September 1, 2025, and November 1, 2025 respectively Agency Contact: Robert Blanchard, Associate Director, OCFS, DHHS, 207-624-7955

View Audit 349360 Questioned Costs: $1

Finding 538511 (2024-061)

Significant Deficiency 2024

State of Maine

ME

Allowable Costs / Cost Principles § 200.303 § 200.403

Department: Health and Human Services Administrative and Financial Services Title: Internal control over CCDF period of performance needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The DHHS Financial Service Center will enhance policies and procedures...

Department: Health and Human Services Administrative and Financial Services Title: Internal control over CCDF period of performance needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The DHHS Financial Service Center will enhance policies and procedures for the CCDF grant by modifying the FSR Reviewer Checklist. Completion Date: April 30, 2025 Agency Contact: Sarah Gove, Director, DHHS Service Center, DAFS, 207-458-6626

View Audit 349360

Finding 538498 (2024-052)

Material Weakness 2024

State of Maine

ME

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.303 § 200.403

Department: Health and Human Services Title: Internal control over payments made to TANF clients needs improvement Questioned Costs: Known: $1,014 Likely: Undeterminable Status: Corrective action in progress Corrective Action: The Department will increase monitoring procedures over payments, specifi...

Department: Health and Human Services Title: Internal control over payments made to TANF clients needs improvement Questioned Costs: Known: $1,014 Likely: Undeterminable Status: Corrective action in progress Corrective Action: The Department will increase monitoring procedures over payments, specifically the tracking of required receipts, by the ASPIRE Team. The Department will review and update Standard Operating Procedures to ensure that payments made to TANF clients are accurate, allowable, and adequately documented. Completion Date: June 30, 2025 Agency Contact: Ian Yaffe, Director, Office for Family Independence, DHHS, 207-592-1481

View Audit 349360 Questioned Costs: $1

Finding 538483 (2024-047)

Significant Deficiency 2024

State of Maine

ME

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.303 § 200.403

Department: Education Administrative and Financial Services Title: Internal control over Special Education period of performance needs improvement Questioned Costs: Known: ALN 84.027 $7,303 Likely: ALN 84.027 $31,678 Status: Corrective action in progress Corrective Action: The Office of Special Serv...

Department: Education Administrative and Financial Services Title: Internal control over Special Education period of performance needs improvement Questioned Costs: Known: ALN 84.027 $7,303 Likely: ALN 84.027 $31,678 Status: Corrective action in progress Corrective Action: The Office of Special Services & Inclusive Education (OSSIE) fiscal team will perform a detailed review of all expenses charged to the closing grant during the 120-day liquidation period beginning October 1 of each year. The OSSIE fiscal team will notify GGSC to no longer allocate expenses to the closed grant period as of the review date. Any expenditure identified that do not fall within the period of performance of the grant will be journaled to the appropriate account. Completion Date: January 28, 2026 Agency Contact: Barbara McGowen, Director of Financial Management for the Office of Special Services & Inclusive Education Birth to 22, DOE, 207-624-6645

View Audit 349360 Questioned Costs: $1

Finding 538466 (2024-041)

Significant Deficiency 2024

State of Maine

ME

Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.303 § 200.430

Department: Administrative and Financial Services Title: Internal control over monitoring of employee classification and compensation needs improvement Questioned Costs: None Status: Management’s opinion is that corrective action is not required Corrective Action: The Department disagrees with this ...

Department: Administrative and Financial Services Title: Internal control over monitoring of employee classification and compensation needs improvement Questioned Costs: None Status: Management’s opinion is that corrective action is not required Corrective Action: The Department disagrees with this finding. The procedure referenced in 5 M.R.S. Sec. 7061(4) is laid out in 18-389 C.M.R. Ch. 4. The Department complies with these written policies and procedures as required by federal and state law. Section 7061(4) was last updated in 2023, with an effective date in October 2023. Pursuant to the JSC on Appropriations, Section 7061(4)(A) requires a review every five years of the state compensation plan for each class or position in the classified service. The FJA process is not related to the compensation plan, however, it is administered under a separate internal control structure that is in place and operating effectively and ensures that the compensation for individual employees is reasonable for the services rendered. The requirement for review of each classification through the FJA process is covered under Section 7061(4)(C) and is required to be reviewed every 10 years. It is also important to note that the Department has conferred with the OAG, who determined that Section 7061(4)(C) is not retroactive, meaning the Department has another 8.5 years to complete a review of all classifications. Additionally, salary studies conducted on State employee wages have shown that the salary and wages of job classifications paid by the State are consistently lower than industry averages, removing the risk that the utilization of these salary schedules as a component of payroll costs will cause overcharges to Federal grants. Completion Date: N/A Agency Contact: Michael J. Dunn, Acting State Human Resources Officer, Bureau of Human Resources, DAFS, 207-287-4651

View Audit 349360

Finding 538462 (2024-039)

Significant Deficiency 2024

State of Maine

ME

Eligibility Internal Control / Segregation of Duties Allowable Costs / Cost Principles § 200.303

Department: Labor Title: Internal control over UI claim payments needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department concluded a system build in January 2025 to implement controls to prevent repetitive waivers. Completion Date: March 30, 2...

Department: Labor Title: Internal control over UI claim payments needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department concluded a system build in January 2025 to implement controls to prevent repetitive waivers. Completion Date: March 30, 2025 Agency Contact: Suzan McKechnie, Director, Bureau of Unemployment Compensation, DOL, 207-621-5126

View Audit 349360

Finding 538433 (2024-032)

Material Weakness 2024

State of Maine

ME

School Nutrition Programs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303 § 200.332

Department: Education Title: Internal control over CNC subrecipient monitoring procedures needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department will implement a monthly status check of the current tracking tool to ensure compliance with the ...

Department: Education Title: Internal control over CNC subrecipient monitoring procedures needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department will implement a monthly status check of the current tracking tool to ensure compliance with the review The Department will update the current high-risk procedure. The Department will develop a procedure for evaluating base year reviews and add a procedure for timelines for adjustments to the claims. Completion Date: July 1, 2025, September 1, 2025, and June 1, 2025, respectively Agency Contact: Jane McLucas, Director of Child Nutrition, DOE, 207-624-6880

View Audit 349360

Finding 538428 (2024-031)

Material Weakness 2024

State of Maine

ME

Questioned Costs Allowable Costs / Cost Principles School Nutrition Programs § 200.303 § 200.403

Department: Education Title: Internal control over CNC claim reimbursements needs improvement Questioned Costs: Known: ALN 10.555 $1,605 ALN 10.582 $9,535 ALN 10.559 $117,259 Likely: Undeterminable Status: Corrective action in progress Corrective Action: Child Nutrition ...

Department: Education Title: Internal control over CNC claim reimbursements needs improvement Questioned Costs: Known: ALN 10.555 $1,605 ALN 10.582 $9,535 ALN 10.559 $117,259 Likely: Undeterminable Status: Corrective action in progress Corrective Action: Child Nutrition Services will create a procedure for reviewing applications and making sure they are approved prior to participation. For the Summer Food Service Program (SFSP), the Child Nutrition Services will create an additional application, outside of CNPWeb to further assess non-congregate operations and eligibility to prevent duplicative services. Child Nutrition Services has submitted a ticket to create an edit check on the SFSP Application to ensure that all specific eligibility information is submitted. Child Nutrition Services will create a procedure to address that session specific information is received prior to claim approval for sites. Child Nutrition Services will require a site sheet for SFSP applications for each location and each enrollment period. Child Nutrition Services will submit a ticket to CNPWeb to allow for documentation to be added to the site information sheet when revisions are made to the system. Child Nutrition Services will add documentation to the activities tab, while we wait for the enhancement to be completed. Child Nutrition Services will create a procedure to ensure that allocations to schools fall between $50.00 - $75.00. Child Nutrition Services has provided training to the National School Lunch Program reviewers on the Fresh Fruit and Vegetable Program questions within the Administrative Review process to ensure that those questions are asked during the Administrative Review. Completion Date: May 1, 2025, first and fourth items, April 1, 2025, second, fifth, sixth, and seventh items, June 1, 2025, third item, March 1, 2025, eight item, and February 10, 2025, for nineth item Agency Contact: Jane McLucas, Director of Child Nutrition, DOE, 207-624-6880

View Audit 349360 Questioned Costs: $1

Finding 538423 (2024-030)

Material Weakness 2024

State of Maine

ME

Questioned Costs School Nutrition Programs Allowable Costs / Cost Principles § 200.303

Department: Education Title: Internal control over CNC eligibility needs improvement Questioned Costs: Known: ALN 10.559 $628,924 Likely: Undeterminable Status: Corrective action in progress Corrective Action: The Department will create procedures for Application Approvals with site classification, ...

Department: Education Title: Internal control over CNC eligibility needs improvement Questioned Costs: Known: ALN 10.559 $628,924 Likely: Undeterminable Status: Corrective action in progress Corrective Action: The Department will create procedures for Application Approvals with site classification, eligibility and non-congregate plan requirements. The Department will develop procedures for Revisions on Claims and Applications. For the Summer Food Service Program, the Department will request an edit check enhancement in CNPWeb to add actual enrollment be added to claims. Completion Date: May 1, 2025, first and second item, and May 1, 2026, third item Agency Contact: Jane McLucas, Director of Child Nutrition, DOE, 207-624-6880

View Audit 349360 Questioned Costs: $1

Corrective Action Plans

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