Corrective Action Plans

Finding 1154212 (2023-001)

Material Weakness 2023

PA

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

CONDITION: During the calendar year 2023, the City did not record the necessary adjustments to the various ‘Fund’ general ledgers of the City to properly reconcile the balance sheet accounts, such as cash, receivables, payables, and payroll-related liabilities to the underlying supporting documentat...

CONDITION: During the calendar year 2023, the City did not record the necessary adjustments to the various ‘Fund’ general ledgers of the City to properly reconcile the balance sheet accounts, such as cash, receivables, payables, and payroll-related liabilities to the underlying supporting documentation available at the City (which includes reconciliations of cash prepared independently by City personnel but do not agree to amounts reported in the various general ledgers). This included ‘Funds” containing significant federal funding such as the City’s Community Development Block Grant (CDBG) Program and American Rescue Plan Act (ARPA) funding known as the Coronavirus State and Local Fiscal Recovery Fund. As a result, the financial position and results of operations as shown throughout the calendar year were inaccurately stated. However, it should be noted that the Community Development Department of the City and other City personnel maintain separate financial reporting for these federal funds, independent of the aforementioned ‘Fund’ general ledgers sufficient to ascertain the revenues and expenditures of the federal programs. This is a repeat finding (2022-001) for the prior year. CRITERIA: Prudent internal control procedures in the areas of general ledger management and financial reporting include the reconciliation of all general ledger account balances to underlying supporting documentation monthly with independent oversight and approval as part of the process. In specific as it relates to federal programs, Section 2 CFR 200.403(g) of the Uniform Guidance requires that federal costs must be adequately documented which would include the applicable general ledgers of the City. MANAGEMENT’S CORRECTIVE ACTION PLAN: Management of the City will review the recommended options as presented by the Audit Firm’s recommendation for feasibility considering current manpower, expertise, and budgetary constraints. In addition, the City plans to ensure that written procedures for all accounting functions are implemented, reviewed and updated as necessary with the objective of ensuring that all balance sheet account balances are supported by the underlying documentation available at the City. The timeframe for completion of this review will occur during the first nine months of calendar year 2025 with the intention of having the City be in full compliance with Section 2 CFR 200.403(g) of the Uniform Guidance which requires federal costs to be adequately documented which would include the applicable general ledgers of the City.

View Audit 367135

Finding 1154169 (2023-007)

Material Weakness 2023

Central Iowa Juvenile Detention Center

IA

Allowable Costs / Cost Principles Subrecipient Monitoring

The Center will ensure we have all supporting documentation saved and reviewed prior to payment being issued.

View Audit 367091

Finding 1154020 (2023-023)

Material Weakness 2023

State of Illinois

IL

Special Tests & Provisions Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.303

Finding Number: 2023-023 Finding Name: Failure to Perform Recovery Audits over Medicaid Underpayments and Overpayment Claims Finding Condition(s): The Illinois Department of Healthcare and Family Services (DHFS) did not initiate any recovery audits over Medicaid claims during fiscal year 2023. Name ...

Finding Number: 2023-023 Finding Name: Failure to Perform Recovery Audits over Medicaid Underpayments and Overpayment Claims Finding Condition(s): The Illinois Department of Healthcare and Family Services (DHFS) did not initiate any recovery audits over Medicaid claims during fiscal year 2023. Name of Contact Person(s): • Ismaila Jagne, Administrative Assistant II - Illinois Department of Healthcare and Family Services, Office of Inspector General • Brian Dunn, Inspector General - Illinois Department of Healthcare and Family Services, Office of Inspector General Corrective Action(s): The DHFS’ Office of Inspector General and the recovery audit contractor (RAC) vendor developed and implemented an audit system. As the program’s administrator, the DHFS OIG monitors its efficacy on an on-going basis and will adjust as necessary. While the RAC vendor did work to complete 13 audits in fiscal year 2023, pursuant to a former contract, the DHFS did not execute its 2023 RAC contract until August 12, 2022. By law, no work could begin under that contract until it was finalized. Once the contract was executed, DHFS’ OIG began working with the vendor to develop the policies, procedures, templates, and systems needed to run an efficient and effective auditing program. The DHFS’ OIG and the RAC vendor met on a bi-weekly basis to develop and implement this system. After all planning and development was completed, the vendor programmed its system and auditing began. RAC audits have a three-year look-back period; therefore, audits in the system will cover fiscal year 2023. Proposed Completion Date: October 31, 2023 – Completed

View Audit 366965

Finding 1154014 (2023-022)

Material Weakness 2023

State of Illinois

IL

Questioned Costs Allowable Costs / Cost Principles Eligibility § 200.303

Finding Number: 2023-022 Finding Name: Failure to Discontinue CHIP Benefits for Ineligible Individuals Finding Condition(s): The Illinois Department of Healthcare and Family Services (DHFS) improperly continued providing benefits under the Children’s Health Insurance Program (CHIP) program to indivi...

Finding Number: 2023-022 Finding Name: Failure to Discontinue CHIP Benefits for Ineligible Individuals Finding Condition(s): The Illinois Department of Healthcare and Family Services (DHFS) improperly continued providing benefits under the Children’s Health Insurance Program (CHIP) program to individuals who were over the age of 19 prior to the start of the federal Public Health Emergency for COVID-19 (PHE) on March 13, 2020. Name of Contact Person(s): • Jacqueline Myers, Bureau Chief - Illinois Department of Healthcare and Family Services, Division of Eligibility • Phronsie Spaulding, Audit Compliance - Illinois Department of Healthcare and Family Services, Division of Eligibility Corrective Action(s): The DHFS accepts this finding for the 19-year-olds identified as receiving assistance under the CHIP program prior to the onset of the federal PHE. Those receiving assistance during the PHE were allowable under the Centers for Medicare and Medicaid Services’ Award Letter. CHIP eligibility for 19-year-olds was not allowable 14 months following the end of the PHE. These cases were redetermined in the State's federally required Unwinding Plan for which additional staff were hired and trained. The DHFS continues to review eligibility determinations for effectiveness and create a plan of action. Current data, as of April 2025, supports the success of the plan as these cases have decreased by 98%. Proposed Completion Date: December 31, 2025

View Audit 366965 Questioned Costs: $1

Finding 1154012 (2023-021)

Material Weakness 2023

State of Illinois

IL

Allowable Costs / Cost Principles Special Tests & Provisions Eligibility § 200.303

Finding Number: 2023-021 Finding Name: Inadequate Procedures to Determine Provider Eligibility Finding Condition(s): The Illinois Department of Healthcare and Family Services (DHFS) did not adequately screen providers of the Children’s Health Insurance Program (CHIP) and the Medicaid Cluster program...

Finding Number: 2023-021 Finding Name: Inadequate Procedures to Determine Provider Eligibility Finding Condition(s): The Illinois Department of Healthcare and Family Services (DHFS) did not adequately screen providers of the Children’s Health Insurance Program (CHIP) and the Medicaid Cluster programs to ensure that Medicaid providers were not on the USDHHS Office of the Inspector General’s (OIG) List of Excluded Individuals/Entities (LEIE) at the time the vouchers for the related services performed were paid. Name of Contact Person(s): • Susie Brown, Assistance Bureau Chief - Illinois Department of Healthcare and Family Services, Provider Enrollment Services • Anthony Kolbeck, Bureau Chief - Illinois Department of Healthcare and Family Services, Provider Enrollment Services Corrective Action(s): The Illinois Medicaid Program Advanced Cloud Technology (IMPACT) system is used by the DHFS for the enrollment and screening of CHIP and Medicaid providers. On a monthly basis, IMPACT automatically checks providers enrolled within IMPACT to the LEIE to verify the provider is not on the LEIE. The IMPACT system is updated through quarterly system releases. As part of the 1.6 quarterly release, the DHFS’ Provider Enrollment Services (PES) updated the system to address the monthly screening check box defect causing the issue. In the Lexis Nexis monthly job, as part of license information, the DHFS receives files from the American Board of Medical Specialties (ABMS), the Clinical Laboratory Improvement Amendments (CLIA), the Drug Enforcement Administration (DEA), and the NCPDP (National Council for Prescription Drug Programs (NCPDP) and other states (out-of-state license/medical license files). Only the corresponding license check boxes are checked for the provider. As an example, for a provider with an ABMS license, the corresponding ABMS check box would be checked. Furthermore, as part of sanction information, the DHFS receives a discipline file, which has the information from the Excluded Parties List System (EPLS), the LEIE, the Medicaid Services Administration (MSA), and other federal and state databases to ensure all are checked for active providers in a monthly batch. Proposed Completion Date: March 31, 2023 – Completed

View Audit 366965

Finding 1153987 (2023-017)

Material Weakness 2023

State of Illinois

IL

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

Finding Number: 2023-017 Finding Name: Inadequate Process for Monitoring Interagency Program Expenditures Finding Condition(s): The Illinois Department of Human Services (IDHS) does not have an adequate process for monitoring interagency expenditures claimed under or used to meet maintenance of effo...

Finding Number: 2023-017 Finding Name: Inadequate Process for Monitoring Interagency Program Expenditures Finding Condition(s): The Illinois Department of Human Services (IDHS) does not have an adequate process for monitoring interagency expenditures claimed under or used to meet maintenance of effort (MOE) requirements of the Supplemental Nutrition Assistance Program (SNAP) Cluster, the Temporary Assistance for Needy Families (TANF), and the Child Care Development Fund (CCDF) Cluster programs. Specific issues noted included the following: • Program questionnaires describing internal control procedures for the CCDF program were not obtained by the IDHS from the Illinois Student Assistance Commission, the Illinois Board of Higher Education, and the Illinois Community College Board. Additionally, the program questionnaire describing internal control procedures for the TANF program was not updated for the period under audit by the Department of Children and Family Services, • Quarterly certification reports were not prepared during the period for the CCDF program by the Illinois Student Assistance Commission, the Illinois Board of Higher Education, and the Illinois Community College Board, and • The IDHS did not perform a detailed review of costs claimed from expenditures reported by any of the other State agencies to ensure they met the specific program requirements. The other State agencies do not necessarily know which federal program or maintenance of effort requirement the costs they are providing to the IDHS will be claimed or used and are not able to assess whether the costs are allowable. Further, the IDHS did not assess whether the expenditures reported by other State agencies were paid during fiscal year 2023 to ensure the amounts reported to the Illinois Office of the Comptroller (IOC) and used to prepare the schedule of expenditures of federal awards (SEFA) were cash basis expenditures. Name of Contact Person(s): Sarah Eves, Bureau Chief of General Accounting – Illinois Department of Human Services, Office of Fiscal Services Corrective Action(s): The IDHS’ Bureau of Federal Reporting (Bureau) will contact the program fiscal liaison for all major programs regarding the process of reporting and appropriate use of federal funds by other agencies. Furthermore, the Bureau will request quarterly certifications and program questionnaires for those agencies receiving funds from federal awards. Proposed Completion Date: March 31, 2025 – Completed

View Audit 366965

Finding 1153983 (2023-016)

Material Weakness 2023

State of Illinois

IL

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

Finding Number: 2023-016 Finding Name: Improper TANF Beneficiary Payments Finding Condition(s): The Illinois Department of Human Services (IDHS) made improper payments to beneficiaries of the Temporary Assistance for Needy Families (TANF) program. In addition, the IDHS identified a system error in J...

Finding Number: 2023-016 Finding Name: Improper TANF Beneficiary Payments Finding Condition(s): The Illinois Department of Human Services (IDHS) made improper payments to beneficiaries of the Temporary Assistance for Needy Families (TANF) program. In addition, the IDHS identified a system error in June 2025 impacting beneficiaries whose benefit payments were calculated using diverted income. Name of Contact Person(s): Elizabth Lusk, Social Service Program Planner – Illinois Department of Human Services, Division of Family and Community Services Corrective Action(s): As of June 30, 2025, the IDHS’ Office of Policy and Program Integrity and the IDHS’ Office of Family Community Resource Centers discussed and formulated a plan to ensure payments are properly calculated and paid. Additionally, a training will be provided for caseworkers that pertains to reviewing the case summary for income errors or sanction errors, etc. Proposed Completion Date: June 30, 2026

View Audit 366965 Questioned Costs: $1

Finding 1153974 (2023-014)

Material Weakness 2023

State of Illinois

IL

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

Finding Number: 2023-014 Finding Name: Unallowable Costs Charged to the TANF and CCDF Cluster Programs Finding Condition(s): The Illinois Department of Human Services (IDHS) could not provide documentation to support payments made on behalf of beneficiaries of the Temporary Assistance for Needy Fami...

Finding Number: 2023-014 Finding Name: Unallowable Costs Charged to the TANF and CCDF Cluster Programs Finding Condition(s): The Illinois Department of Human Services (IDHS) could not provide documentation to support payments made on behalf of beneficiaries of the Temporary Assistance for Needy Families (TANF) and CCDF Cluster (CCDF) programs. Additionally, the IDHS had not performed a monitoring review in 2023 or either of the previous two fiscal years to ensure billing information provided by the child care providers is accurate for any of the providers sampled. As a result, IDHS does not have adequate controls in place to ensure information provided by providers is accurate and the related child care payments made were appropriate. Name of Contact Person(s): • Felicia Gray, Associate Director of Operations – Illinois Department of Human Services, Division of Early Childhood • Elizabeth Lusk, Social Service Program Planner – Illinois Department of Human Services, Division of Family and Community Services Corrective Action(s): The IDHS will develop a procedure for periodic reviews of billing certificates for payments entered through the Interactive Voice Response (IVR) system. Additionally, the IDHS will develop forms, notices, and tools needed to implement the review process. Furthermore, the IDHS will develop and implement a communication plan to announce upcoming reviews that includes the Service Employees International Union (SEIU), the Division of Early Childhood (DEC), Child Care Resource and Referrals (CCR&Rs), and all providers using the Interactive Voice Response (IVR). Once these items are developed, the IDHS will determine needed changes to the IDHS’ administrative rules, its Child Care Assistance Program (CCAP) Policy, and its CCDF State Plan response. After obtaining the necessary leadership approvals, the IDHS will begin conducting IVR reviews. Proposed Completion Date: January 1, 2026

View Audit 366965 Questioned Costs: $1

Finding 1153970 (2023-013)

Material Weakness 2023

State of Illinois

IL

Questioned Costs Allowable Costs / Cost Principles Period of Performance § 200.303

Finding Number: 2023-013 Finding Name: Unallowable Costs Charged to the SAPT Program Finding Condition(s): The Illinois Department of Human Services (IDHS) charged subrecipient expenditures to the Block Grants for Prevention and Treatment of Substance Abuse (SAPT) program which were incurred after t...

Finding Number: 2023-013 Finding Name: Unallowable Costs Charged to the SAPT Program Finding Condition(s): The Illinois Department of Human Services (IDHS) charged subrecipient expenditures to the Block Grants for Prevention and Treatment of Substance Abuse (SAPT) program which were incurred after the period of performance ended. Name of Contact Person(s): Christina Miller, Fund Disbursement Manager – Illinois Department of Human Services, Division of Substance Use, Prevention, and Recovery Corrective Action(s): The IDHS established a procedure to run billing data which will be filtered to determine if dates fall outside of the performance period of the grant. Additionally, the IDHS will ensure that any bills that fall outside of the performance period of the grant are paid as separate payments so as not to be paid out of incorrect funds. Proposed Completion Date: October 15, 2024 – Completed

View Audit 366965 Questioned Costs: $1

Finding 1153954 (2023-011)

Material Weakness 2023

State of Illinois

IL

Questioned Costs Eligibility Special Tests & Provisions § 200.303

Finding Number: 2023-011 Finding Name: Failure to Obtain Required Certifications for Child Care Providers Receiving American Rescue Plan Act Stabilization Funds Finding Condition(s): The Illinois Department of Human Services (IDHS) did not obtain the required certifications at the time of applicatio...

Finding Number: 2023-011 Finding Name: Failure to Obtain Required Certifications for Child Care Providers Receiving American Rescue Plan Act Stabilization Funds Finding Condition(s): The Illinois Department of Human Services (IDHS) did not obtain the required certifications at the time of application for certain providers of the Child Care Development Fund (CCDF) Cluster receiving American Rescue Plan Act (ARPA) stabilization funds. Name of Contact Person(s): Felicia Gray, Associate Director– Illinois Department of Human Services, Early Childhood Corrective Action(s): The IDHS’ Division of Early Childhood (DEC) has not received and does not anticipate receiving any new ARPA funding. For future consideration of funding, the IDHS will ensure that, in addition to meeting health and safety requirements, the providers will also complete certifications and attestations that verify that they meet the requirements and eligibility of the program. In addition, the DEC will train appropriate staff to review, identify, and implement any new Child Care grant/funding requirement(s). Proposed Completion Date: May 31, 2024 – Completed

View Audit 366965 Questioned Costs: $1

Finding 1153951 (2023-010)

Material Weakness 2023

State of Illinois

IL

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting § 200.303 § 200.332

Finding Number: 2023-010 Finding Name: Failure to Follow Established Program Subrecipient Monitoring Procedures Finding Condition(s): The Illinois Department of Human Services (IDHS) did not follow its established program monitoring policies and procedures for subrecipients of the Temporary Assistan...

Finding Number: 2023-010 Finding Name: Failure to Follow Established Program Subrecipient Monitoring Procedures Finding Condition(s): The Illinois Department of Human Services (IDHS) did not follow its established program monitoring policies and procedures for subrecipients of the Temporary Assistance for Needy Families (TANF) Cluster, the Childcare Cluster (CCDF), the Social Services Block Grant (SSBG), and the Block Grants for Prevention and Treatment of Substance Abuse (SAPT) programs. More specifically, the IDHS did not perform on-site monitoring reviews of subrecipients in fiscal year 2023 in accordance with IDHS’ planned monitoring schedule and/or could not provide support for the review, did not provide timely notification (within 60 days) of the results of the programmatic on-site reviews, did not complete its quality reviews on a timely basis (within 60 days), did not receive corrective action plans from subrecipients after findings were identified during the reviews, and was unable to provide documentation evidencing monitoring of the quarterly program reports. Name of Contact Person(s): • Elizabth Lusk, Social Service Program Planner – Illinois Department of Human Services, Division of Family and Community Services • Christina Miller, Fund Disbursement Manager – Illinois Department of Human Services, Division of Substance Use, Prevention, and Recovery Corrective Action(s): IDHS - Division of Family and Community Services (FCS) FCS Associate Directors, in conjunction with staff from the Director’s Office, met and reviewed exceptions noted in the fiscal year 2022 single audit to determine any need for updated documentation and communication regarding subrecipient programmatic monitoring. The FCS reviewed the FCS Programmatic Monitoring Guidance Document and made necessary updates. IDHS - Division of Substance Use Prevention and Recovery (SUPR) The SUPR will hire an administrative assistant to assist with compliance monitoring tracking activities to maintain communication about important deadlines. The SUPR will also hire compliance monitors to engage in conducting compliance reviews. Additionally, the SUPR will meet weekly to track monitoring activities to ensure deadlines are met. Finally, the SUPR will review its policy and procedures to assess timelines associated with the monitoring process. Proposed Completion Date: • July 29, 2024 – Completed (FCS) • December 31, 2025 (SUPR)

View Audit 366965

Finding 1153790 (2023-004)

Material Weakness 2023

Mason County Commission

WV

Questioned Costs Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking

The Commission will contact the granting agency and work on a resolution of the questioned expenses. The County will also implement controls to prevent future instances

View Audit 366877 Questioned Costs: $1

Finding 1153457 (2023-002)

Material Weakness 2023

Town of Norwood

MA

Questioned Costs Procurement, Suspension & Debarment Allowable Costs / Cost Principles § 200.318 § 200.327

Corrective Action Plan Federal Procurement Audit Finding 2023-002 Town’s Response: The Town concurs with the audit finding and has begun implementing the corrective actions outlined below. 1. Policy Alignment o Revise the Town’s Procurement Policy to explicitly state that federal Uniform Guidance pr...

Corrective Action Plan Federal Procurement Audit Finding 2023-002 Town’s Response: The Town concurs with the audit finding and has begun implementing the corrective actions outlined below. 1. Policy Alignment o Revise the Town’s Procurement Policy to explicitly state that federal Uniform Guidance procurement standards supersede state exemptions when federal funds are used. 2. Procedural Controls o Require a funding source review step in the requisition process: if any portion of funding is federal, staff must apply federal standards. o Incorporate a mandatory compliance checklist for all federally funded procurements, including documentation of cost/price analysis, vendor selection, and conflict of interest certifications. 3. Training & Awareness o Conduct annual training for the Procurement Manager. o Provide written desk guides / “quick reference sheets” for federal vs. state thresholds and documentation requirements. 4. Oversight & Monitoring o Director of Finance/Assistant Finance Director to review and approve all federal-funded procurement files prior to award. o Establish quarterly compliance monitoring of federal procurements, with results reported to the Town Manager via Monthly reports submitted. 5. System Enhancements o Explore Munis configuration options to flag federally funded accounts during requisition entry, ensuring the correct rules are applied.

View Audit 366708 Questioned Costs: $1

Finding 1153298 (2023-011)

Material Weakness 2023

Community Legal Aid Society, Inc.

DE

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Reporting § 200.32

This has been corrected with the new Director of Finance. We are making sure that all reports are filed on time and correctly.

View Audit 366514

Finding 576441 (2023-053)

Material Weakness 2023

State of Nevada

NV

Allowable Costs / Cost Principles Eligibility Material Weakness § 200.303

Finding 2023-053 Program Information Program Name: Children’s Health Insurance Program (CHIP) CFDA Number: 93.767 Summary of Finding Eligibility Material Weakness in Internal Control over Compliance Agency Response The agency agrees with this finding. Corrective Action Plan DSS has enhanced internal...

Finding 2023-053 Program Information Program Name: Children’s Health Insurance Program (CHIP) CFDA Number: 93.767 Summary of Finding Eligibility Material Weakness in Internal Control over Compliance Agency Response The agency agrees with this finding. Corrective Action Plan DSS has enhanced internal controls to ensure CHIP applications are accurately processed and properly documented. Procedures have been reinforced to require that all applications and supporting documentation are consistently reindexed to the correct case file when a pseudo-SSN is updated, that each application carries a clear date stamp, and that records are fully maintained in DIS. In addition, DSS relies on its Quality Control (QC) unit to conduct post-eligibility reviews, validate determinations, and identify corrective actions when necessary. Together, these measures ensure that applications are complete, accessible, and compliant with program requirements. Contact Person(s) Responsible Karen Stoycoff, Social Services Program Specialist Phone: 775-684-7436 Email: kstoycoff@dss.nv.gov Anticipated Completion Date September 30th, 2025.

View Audit 366218

Finding 576437 (2023-050)

Significant Deficiency 2023

State of Nevada

NV

Questioned Costs Allowable Costs / Cost Principles

Date: September 5, 2025 Program: U.S. Department of Health and Human Services Foster Care - Title IV-E, CFDA 93.658 Adoption Assistance, 93.659 Corrective Action Plan Finding Number: 2023-050 Finding: Allocation methods used in cost allocation did not agree to the approved cost allocation plan, amou...

Date: September 5, 2025 Program: U.S. Department of Health and Human Services Foster Care - Title IV-E, CFDA 93.658 Adoption Assistance, 93.659 Corrective Action Plan Finding Number: 2023-050 Finding: Allocation methods used in cost allocation did not agree to the approved cost allocation plan, amounts allocated did not agree to the general ledger, and allocation statistics did not agree to underlying support. Corrective Action Taken To Be Taken Quarterly Cost Allocation internal controls will be reviewed and updated to ensure costs are allocated accurately and in accordance with the cost allocation plan. Staff will be trained on the revised internal controls to best assist in identifying any inaccuracies within both the cost allocation plan narrative and software system. Internal audits will be performed periodically to ensure staff are following the revised internal controls. If already taken, date of completion: If to be taken, estimated date of completion Revisions of internal controls and staff training will be completed by 3/31/26. Agency Response Does the Agency agree with finding? The Nevada Division of Child and Family Services agrees with this finding If no or partial, please explain reason(s) why: Additional Comments: Prior year finding 2022-056 Division Responsible for Corrective Action Name, Title Kelsey Mccann-Navarro, Administrative Services Officer IV Address 4126 Technology Way City, State, Zip Code Carson City, NV 89706 Phone Number 775-684-4431 Email Kelsey.Navarro@dcfs.nv.gov

View Audit 366218 Questioned Costs: $1

Finding 576428 (2023-042)

Significant Deficiency 2023

State of Nevada

NV

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

Finding 2023-042 Program Information Program Name: Low-Income Home Energy Assistance Covid-19 Low-Income Home Energy Assistance CFDA Number: 93.568 Summary of Finding Significant Deficiency in Internal Control over Compliance Agency Response The agency agrees with this finding. Corrective Action Pla...

Finding 2023-042 Program Information Program Name: Low-Income Home Energy Assistance Covid-19 Low-Income Home Energy Assistance CFDA Number: 93.568 Summary of Finding Significant Deficiency in Internal Control over Compliance Agency Response The agency agrees with this finding. Corrective Action Plan DSS has strengthened internal controls to ensure all reimbursement requests are independently reviewed and approved prior to submission. Each request must now include documented evidence of review and authorization by staff who are not involved in the preparation of the request, ensuring proper segregation of duties. Supporting documentation is validated during the review process, and supervisory sign-off is required to confirm accuracy and compliance. These measures provide assurance that reimbursement requests are fully supported, independently verified, and compliant with program requirements. Contact Person(s) Responsible Brook Barlow, Chief Fiscal Services Phone: 775-684-0659 Email: mrwortman@dss.nv.gov Anticipated Completion Date Corrective Actions have been in place since July 1, 2023.

View Audit 366218

Finding 576419 (2023-056)

Material Weakness 2023

State of Nevada

NV

Allowable Costs / Cost Principles Eligibility Material Weakness § 200.303

Finding 2023-056 Program Information Program Name: Children’s Health Insurance Program (CHIP), Medicaid Cluster: State Medicaid Fraud Control Units, State Survey and Certification of Health Care Providers and Suppliers (Title XVIII) Medicare, Medical Assistance Program (Medicaid; Title XIX) CFDA Num...

Finding 2023-056 Program Information Program Name: Children’s Health Insurance Program (CHIP), Medicaid Cluster: State Medicaid Fraud Control Units, State Survey and Certification of Health Care Providers and Suppliers (Title XVIII) Medicare, Medical Assistance Program (Medicaid; Title XIX) CFDA Number: 93.767/93.775/93.777/93.778 Summary of Finding Eligibility Material Weakness in Internal Control over Compliance Agency Response Agency agrees with the finding. Corrective Action Plan DSS has clarified its internal control framework to reflect that eligibility accuracy is verified through the Division’s Quality Control (QC) unit rather than a secondary supervisor review. The QC unit conducts ongoing post-eligibility case reviews to validate determinations, identify errors, and recommend corrective measures. To support this process, DSS has reinforced procedures requiring all applications and redeterminations to be properly filed, time-stamped, and maintained in DIS to ensure accessibility for QC review. These measures, combined with QC oversight, provide assurance that eligibility determinations are accurate, documented, and compliant with program requirements. Contact Person(s) Responsible Karen Stoycoff, Social Services Program Specialist Phone: 775-684-7436 Email: kstoycoff@dss.nv.gov Anticipated Completion Date September 30th, 2025.

View Audit 366218

Finding 576418 (2023-055)

Material Weakness 2023

State of Nevada

NV

Questioned Costs Allowable Costs / Cost Principles Material Weakness § 200.403

Finding 2023-055 U.S. Department of Health and Human Services Medicaid Cluster: State Medicaid Fraud Control Units, 93.775 State Survey and Certification of Health Care Providers and Suppliers (Title XVIII) Medicare, 93.777 Medical Assistance Program (Medicaid; Title XIX), 93.778 Summary of Finding:...

Finding 2023-055 U.S. Department of Health and Human Services Medicaid Cluster: State Medicaid Fraud Control Units, 93.775 State Survey and Certification of Health Care Providers and Suppliers (Title XVIII) Medicare, 93.777 Medical Assistance Program (Medicaid; Title XIX), 93.778 Summary of Finding: Underlying supporting documentation for certain administrative costs was not maintained by the Division of Health Care Financing and Policy (DHCFP). DHCFP did not have adequate internal controls to ensure supporting documentation for administrative expenditures was maintained. Administrative costs were charged to the federal program without appropriate supporting documentation. No documentation was available to support seven transactions, totaling $5,459, that were charged to the federal program. These charges included general ledger descriptions of: • Per diem in-state • Annual leave • Building and grounds lease assessment • IT virtual server hosting • IT security assessment Of the seven transactions, five were journal vouchers that did not contain the underlying support for the journal voucher. One transaction was coded as a direct payment voucher and one transaction was coded as an expenditure to a cash receipt (rather than payment voucher). We recommend DHCFP enhance internal controls to ensure supporting documentation for administrative expenditures is maintained. NVHA Response: Nevada Health Alliance agrees with this finding. Corrected Action Planned: The Division has strengthened its internal controls to ensure that supporting documentation for all administrative expenditures is properly maintained and readily accessible. The following procedures have been implemented: 1. Documentation in CORE.NV: Accounting personnel are now required to attach all supporting documentation directly in CORE.NV at the time of transaction preparation, while acting as the Pend1 approver. 2. Pend2 Approval Verification: The Pend2 approver must verify that the appropriate supporting documentation is attached in CORE.NV before applying their approval to the transaction. 3. “Snatch and Grab” Transactions: For transactions initiated outside the standard workflow (“snatch and grab”), accounting personnel will proactively obtain the necessary supporting documentation from the applicable division to ensure completeness. 4. SharePoint Repository: In addition to CORE.NV, all supporting documentation will be saved in a centralized SharePoint repository to enhance accessibility, transparency, and audit readiness. These measures are intended to improve accountability, ensure compliance with documentation requirements, and support the integrity of financial reporting. Anticipated Completion Date of Corrective Action Plan: September 2025

View Audit 366218 Questioned Costs: $1

Finding 576397 (2023-037)

Material Weakness 2023

State of Nevada

NV

Reporting Internal Control / Segregation of Duties Subrecipient Monitoring § 200.303

Finding #2023-037 – Education Stabilization Fund, CFDA 84.425 Reporting – Material Weakness in Internal Control over Compliance and Material Noncompliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE implement internal controls to identify required informati...

Finding #2023-037 – Education Stabilization Fund, CFDA 84.425 Reporting – Material Weakness in Internal Control over Compliance and Material Noncompliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE implement internal controls to identify required information to be reported, ensure accuracy, and maintain adequate document retention to support compliance. NDE Response Due to rapid turnover, changes in assigned personnel, and inconsistent file architecture, NDE has struggled to ensure that source documentation is labeled and retained appropriately. Corrective Action NDE shall document standards for data and reporting, to include required standards for policies and procedures and business rules, to support the development of new and/or temporary reporting requirements in alignment with all relevant internal controls. NDE shall implement internal control monitoring specific to compliance with the data and reporting standards. The Office of Division Compliance will collaborate with the Office of Assessments, Data, and Accountability Management, as well as the Office of District Support to develop these standards. Responsible Parties and Anticipated Completion Date Student Investment Division, Office of Division Compliance; May 1, 2026. Please reach out to Amelia Thibault at sidcompliance@doe.nv.gov with any questions.

View Audit 366218

Finding 576394 (2023-034)

Material Weakness 2023

State of Nevada

NV

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

Finding #2023-034 – Title I Grants to Local Education Agencies, CFDA 84.010 Matching, Level of Effort, and Earmarking – Material Weakness in Internal Control over Compliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE enhance internal controls to ensure the...

Finding #2023-034 – Title I Grants to Local Education Agencies, CFDA 84.010 Matching, Level of Effort, and Earmarking – Material Weakness in Internal Control over Compliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE enhance internal controls to ensure the information used is maintained and reviewed for accuracy and compliance. NDE Response The Department agrees with this finding. While the Department has developed a comprehensive Policy and Procedure (1.9 Title I ESEA MOE) documenting the process for the development, review, and finalization of the MOE report, as well a Business Rule which clearly crosswalks source data to reporting outcomes and integrates pillars from NDE’s Records Management Program, understaffing at the Department has made it difficult to ensure deadlines are met, all levels of review have been completed, and audit trails have been sufficiently documented. Corrective Action A checklist detailing the chain of review has been developed and will be implemented to track the review and approval process of federal reports prior to submission. NDE shall implement internal control monitoring specific to the use of this checklist and adherence to internal controls regarding levels of review. The Office of Division Compliance will collaborate across the Department to ensure adoption and adherence to the use of this form. Responsible Parties and Anticipated Completion Date Student Investment Division, Office of Division Compliance; November 1, 2025. Please reach out to Amelia Thibault at sidcompliance@doe.nv.gov with any questions.

View Audit 366218

Finding 576393 (2023-033)

Material Weakness 2023

State of Nevada

NV

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

Finding #2023-033 – Title I Grants to Local Education Agencies, CFDA 84.010 Matching, Level of Effort, and Earmarking – Material Weakness in Internal Control over Compliance and Material Noncompliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE enhance inte...

Finding #2023-033 – Title I Grants to Local Education Agencies, CFDA 84.010 Matching, Level of Effort, and Earmarking – Material Weakness in Internal Control over Compliance and Material Noncompliance resulted in the following Eide Bailly, LLP recommendation: Eide Bailly recommended NDE enhance internal controls to ensure supporting documentation of the adjustments in allocations to LEAs is maintained. NDE Response NDE agrees with this finding. In alignment with efforts under findings 2022-037 and 2023-034 regarding maintenance of effort, the Department has worked to develop policies and procedures, business rules, and consistent data and reporting practices across reports. Corrective Action NDE shall document standards for data and reporting, to include required standards for policies and procedures and business rules, to support the development of new and/or temporary reporting requirements in alignment with all relevant internal controls. NDE shall implement internal control monitoring specific to compliance with the data and reporting standards. The Office of Division Compliance will collaborate with the Office of Assessments, Data, and Accountability Management, as well as the Office of District Support to develop these standards. Responsible Parties and Anticipated Completion Date Student Investment Division, Office of Division Compliance; May 1, 2026. Please reach out to Amelia Thibault at sidcompliance@doe.nv.gov with any questions.

View Audit 366218

Finding 576388 (2023-028)

Material Weakness 2023

State of Nevada

NV

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Special Tests & Provisions § 200.303

Audit Finding: 2023-028 Emergency Rental Assistance Program: 21.023 Special Tests and Provisions – ERA Funds Reallocation Material Weakness in Internal Control over Compliance and Material Noncompliance Summary: Supporting documentation for the application to receive reallocated funds was not mainta...

Audit Finding: 2023-028 Emergency Rental Assistance Program: 21.023 Special Tests and Provisions – ERA Funds Reallocation Material Weakness in Internal Control over Compliance and Material Noncompliance Summary: Supporting documentation for the application to receive reallocated funds was not maintained and there was not adequate segregation of duties in the preparation and review of the application. Recommendation: Enhance internal controls to ensure supporting documentation is maintained. Agency Response: The Nevada Housing Division (“Division”) does not agree with the finding. While the Division acknowledges the requirements outlined for audit in the Special Test, these do not align with the actual reallocation application which simply stated that the applicant must confirm a demonstrated need and submit monthly projections. The Division did provide these projections with its reallocation application along with households in the queue for emergency rental assistance and past monthly expenditures and households served in order to inform the projections. Corrective Action: In FY25, the Housing Division moved ERAP to the Grants Team for management, including the documentation of amounts being reported to the awarding agency. Additionally, the Division established an internal audit and compliance committee to enhance oversight of existing policies for assessing risk, monitoring, and sharing best practices across its business in January of 2024. The internal audit and compliance committee is responsible for reviewing internal controls and policies on an annual basis, following up on any audit findings and ensuring follow-through of corrective action plans. Finally, the Division received legislative approval for an Auditor 3 position that will commence in October 2025 to support fiscal and overall grant compliance. Adoption of Corrective Action: January 2024 Division Contact and Corrective Action Plan Lead: Christine Hess, Chief Financial Officer Nevada Housing Division 775-687-2249 chess@housing.nv.gov

View Audit 366218

Finding 576386 (2023-026)

Material Weakness 2023

State of Nevada

NV

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

Audit Finding: 2023-026 Emergency Rental Assistance Program: 21.023 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Summary: Key information was not reported, supporting documentation for amounts that were reported was not maintained, and there was not prop...

Audit Finding: 2023-026 Emergency Rental Assistance Program: 21.023 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Summary: Key information was not reported, supporting documentation for amounts that were reported was not maintained, and there was not proper segregation of duties relative to reporting. Recommendation: Implement internal controls to ensure reports are reviewed for accuracy prior to submission. Agency Response: The Nevada Housing Division (“Division”) agrees with the finding. The Division also acknowledges this is a prior year finding. The timing of the FY22 and FY23 state audits did not allow for any corrective actions to be reflected. Additionally, the Division would like to note, and be given consideration for, the substantive fact of the context of the time period in a pandemic, a once in a lifetime crisis that was impacting daily work and personal lives of all Nevadans, including Division staff. Finally, and importantly, the U.S. Treasury portal was a challenge to work with and guidance was often confusing and contradictory. Corrective Action: In FY25, the Division moved ERAP to the Grants Team for management of the subrecipients and reporting. Additionally, the Division established an internal audit and compliance committee to enhance oversight of existing policies for assessing risk, monitoring, and sharing best practices across its business in January of 2024. The internal audit and compliance committee is responsible for reviewing internal controls and policies on an annual basis, following up on any audit findings and ensuring follow-through of corrective action plans. Finally, the Division received legislative approval for an Auditor 3 position that will commence in October 2025 to support fiscal and overall grant compliance. Adoption of Corrective Action: January 2024 Division Contact and Corrective Action Plan Lead: Christine Hess, Chief Financial Officer Nevada Housing Division 775-687-2249 chess@housing.nv.gov

View Audit 366218

Finding 576308 (2023-003)

Material Weakness 2023

Isaac Elementary School District No. 5

AZ

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

Finding Number: 2023‐003 Program Name/Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Contact Person: James Serbin, Chief Financial Officer Anticipated Completion Date: June 30, 2026 Planned Corrective Action: Since April 2025, Federal & ...

Finding Number: 2023‐003 Program Name/Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Contact Person: James Serbin, Chief Financial Officer Anticipated Completion Date: June 30, 2026 Planned Corrective Action: Since April 2025, Federal & State grant expenditures are verified to conform to the grant applications. Budget revisions are requested and approved before expenditures are made. After reconciling expenditures to the grant detail, timely reimbursement requests are made. Journal entries are expected to contain adequate detail and justification and Grant personnel now report to the Business Manager and Chief Financial Officer where they receive ongoing support, training and supervision. The District intends to be in compliance with 2 CFR Part 200.303 during the 2026 fiscal year.

View Audit 366183

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