Corrective Action Plans

Finding 1210433 (2025-001)

Material Weakness 2025

Licking County Coalition for Housing, Inc.

OH

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

Recommendation: We recommend that management re-evaluate its policies and procedures to ensure an appropriate member of management is in place to review all expenditures charged to federal awards, as well obtaining the approval of the federal agency when changes are made that would impact funding an...

Recommendation: We recommend that management re-evaluate its policies and procedures to ensure an appropriate member of management is in place to review all expenditures charged to federal awards, as well obtaining the approval of the federal agency when changes are made that would impact funding and or amounts charged to the federal program. Action Taken: Management has implemented revised policies and procedures in place to strengthen the controls over activities allowed and unallowed and allowable costs to reduce the risk of inaccurate, unallowable, or wrongly allocated expenses charged to the federal program.

View Audit 399926

Finding 1210426 (2025-003)

Material Weakness 2025

Cedar Valley Services, Inc.

MN

Allowable Costs / Cost Principles Significant Deficiency

Formula Grants for Rural Areas – Assistance Listing No. 20.509 Recommendation: We recommend the Organization implement a process to verify employee pay rates are properly entered into the payroll system. Explanation of disagreement with audit finding: There is no disagreement with the audit finding....

Formula Grants for Rural Areas – Assistance Listing No. 20.509 Recommendation: We recommend the Organization implement a process to verify employee pay rates are properly entered into the payroll system. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization will implement a process for the HR department to review the payroll change report after accounting enters new pay rates. Names of the contact persons responsible for corrective action: Garry Hart, Executive Director, and Kris Burkey, Finance Manager Planned completion date for corrective action plan: Ongoing

View Audit 399880

Finding 1208891 (2025-002)

Material Weakness 2025

Dakota Plains Legal Services, Inc.

SD

Allowable Costs / Cost Principles Period of Performance Significant Deficiency

LSC Grants (Basic and Native American) – Assistance Listing No. 09.742018 Recommendation: The Organization should implement a review process for proper cutoff of federal expenditures incurred during a grant’s period o fperformance to ensure only expenses incurred during current periods are included....

LSC Grants (Basic and Native American) – Assistance Listing No. 09.742018 Recommendation: The Organization should implement a review process for proper cutoff of federal expenditures incurred during a grant’s period o fperformance to ensure only expenses incurred during current periods are included. Explanation of disagreement with audit finding: The Organization respectfully disagrees to the extent the finding suggests a reporting deficiency related to the specific item identified. As reflected in the audit correspondence, the underlying accrual in question was reviewed and determined by both the Organization’s accounting support and the auditors to be immaterial, and no adjustment was recommended or required. However, the Organization acknowledges the value of formalizing documentation of its review procedures to ensure consistency and clarity in all reporting determinations. Action taken in response to finding: Notwithstanding the above, the Organization will implement a formalized review and documentation process for financial and performance reports to ensure that all determinations—including immaterial items—are consistently reviewed, documented, and supported. This will include: • A standardized report review checklist • Documentation of materiality assessments and related decisions • Secondary review and approval prior to submission This process will be incorporated into the Organization’s accounting procedures and applied consistently across all LSC-funded grants. In addition, the revision to the Accounting Manual will be submitted to LSC for its review. Name(s) of the contact person(s) responsible for corrective action: William Sulik, Interim Executive Director and Lori Stanford, Deputy Director Planned completion date for corrective action plan: June 30, 2026

View Audit 399843

Finding 1208882 (2025-002)

Material Weakness 2025

Sumter County Commission on Alcohol and Drug Abuse

SC

Allowable Costs / Cost Principles Cash Management Material Weakness § 200.303 § 200.516

Management agrees with the finding and will strengthen procedures over documenta􀆟on and drawdown processes, including 􀆟mely, organized maintenance of suppor􀆟ng documenta􀆟on and improved processes for preparing and suppor􀆟ng reimbursement requests.

View Audit 399833

Finding 1208846 (2025-002)

Material Weakness 2025

Town of Westford

MA

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

2025-002 Special Education Cluster – 84.027, 84.173 Recommendation: We recommend procedures be strengthened to ensure that time and effort certifications are completed in a timely manner. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in...

2025-002 Special Education Cluster – 84.027, 84.173 Recommendation: We recommend procedures be strengthened to ensure that time and effort certifications are completed in a timely manner. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The District has begun reviewing and strengthening its internal procedures to ensure that required time and effort certifications for employees charged to the Special Education Cluster are completed accurately and in a timely manner. Going forward, the District will reinforce timelines for completion, provide reminders to responsible staff, and implement additional monitoring procedures to ensure certifications are collected, reviewed, and retained in accordance with federal requirements. Name(s) of the contact person(s) responsible for corrective action: Special Education Department, in coordination with Business office. Planned completion date for corrective action plan: April 30, 2026

View Audit 399773

Finding 1208840 (2025-002)

Material Weakness 2025

Town of Sutton

MA

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Significant Deficiency

With new department heads and Town Manager for FY2026 the town will implement procedures to verify and maintain proper documentation for all procurement projects.

View Audit 399750

Finding 1208839 (2025-001)

Material Weakness 2025

Town of Sutton

MA

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Significant Deficiency

With new department heads and Town Manager for FY2026 the town will implement procedures to verify and maintain proper documentation for all procurement projects.

View Audit 399750

Finding 1208829 (2025-004)

Material Weakness 2025

Bloom Township High School District 206

IL

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

Finding Number: 2025-004 It is recommended that that district review the design of its internal control over compliance to ensure the documentation requirements are incorporated into the control design. Response: To enhance internal controls to ensure the segregation of duties, the Assistant Directo...

Finding Number: 2025-004 It is recommended that that district review the design of its internal control over compliance to ensure the documentation requirements are incorporated into the control design. Response: To enhance internal controls to ensure the segregation of duties, the Assistant Director of Food Services will be responsible for the initial preparation and completion of all the claims. Subsequently, a secondary review and approvable will be preformed by either the Director or the Chief School Business Official (CSBO) prior to submission.

View Audit 399714

Finding 1208805 (2025-001)

Material Weakness 2025

Froedtert Health, Inc. and Affiliates

WI

Allowable Costs / Cost Principles Special Tests & Provisions § 200.430

Corrective Action Plan – Material Weakness & Material Noncompliance (Single Audit) Entity Name: Froedtert ThedaCare Health (FTCH) Corrective Action Plan For the Fiscal Year Ended June 30, 2025 Finding 2025-001 – Material Noncompliance (Major Federal Program) Federal Program U.S. Department of Health...

Corrective Action Plan – Material Weakness & Material Noncompliance (Single Audit) Entity Name: Froedtert ThedaCare Health (FTCH) Corrective Action Plan For the Fiscal Year Ended June 30, 2025 Finding 2025-001 – Material Noncompliance (Major Federal Program) Federal Program U.S. Department of Health and Human Services – National Institutes of Health (NIH) – Cancer Control ALN: 93.399 Finding Description The audit identified material weakness and material noncompliance with federal program requirements related to payroll, fringe benefits and indirect costs. Specifically, FTCH did not comply with NIH Salary Cap requirements, which resulted in questioned costs that were quantitatively and qualitatively material. Cause of the Finding FTCH did not apply the NIH salary cap limitations correctly during the period under review. Corrective Action Planned • The Entity will take the following corrective actions to address the material noncompliance:  Performing a comprehensive review of all FTCH grants, both under consideration and currently active, to determine whether a salary cap limitation applies. Where applicable, management will confirm that the salary cap is being consistently and accurately applied in accordance with governing requirements. Any discrepancies identified have been or will be corrected in a timely manner.  Enhancing pre-award and pre-submission compliance controls through updates to grant review procedures and compliance checklists. These updates are designed to ensure that grants subject to salary cap limitations are clearly flagged and that salary calculations are reviewed and documented prior to submission and award acceptance.  Providing targeted training for staff involved in grant administration, budgeting, payroll processing, and financial reporting to ensure consistent understanding and application of salary cap requirements and related internal control procedures.  Conducting periodic internal monitoring reviews of salary charges to federal awards to assess ongoing compliance, validate the effectiveness of internal controls, and identify potential issues before they result in noncompliance. Results of these reviews will be documented, and corrective actions implemented as appropriate. Personnel Responsible: SVP Finance Anticipated Completion Date: May 31, 2026 Status of Corrective Action Corrective action has been initiated and will be completed within the stated timeframe. Management Certification Management certifies that the corrective actions described above are accurate, appropriate, and will be implemented as represented. ____________________ Matt Partridge SVP Finance April ___, 2026

View Audit 399667

Finding 1208786 (2025-004)

Material Weakness 2025

Haring Charter Township

MI

Procurement, Suspension & Debarment Allowable Costs / Cost Principles

This finding is due to the Township not having formal written policies in place required by Uniform Guidance. The Township is now aware that these policies are required and will adopt all necessary policies. The Township does not believe that there were any actual nonallowable costs or transactions ...

This finding is due to the Township not having formal written policies in place required by Uniform Guidance. The Township is now aware that these policies are required and will adopt all necessary policies. The Township does not believe that there were any actual nonallowable costs or transactions because of the lack of written policies as required by Uniform Guidance. The Township will adopt all necessary policies to be in compliance. The person responsible for the corrective action is the Supervisor. The anticipated completion date of the corrective action plan is before the end of the 2026 fiscal year. The plan for adherence is that the Board will review all proposed policies and adopt them, the Board will also monitor any changes to policy requirements to ensure that they are in compliance in the future.

View Audit 399623

Finding 1208608 (2025-006)

Material Weakness 2025

Legal Services Alabama, INC

AL

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Significant Deficiency

Corrective Action: LSA will provide training to the appropriate departments and individuals to reinforce disbursement and purchase order policies and procedures within 30 days of the audit submission. Additionally, LSA will provide training to employees emphasizing the organizational policies requir...

Corrective Action: LSA will provide training to the appropriate departments and individuals to reinforce disbursement and purchase order policies and procedures within 30 days of the audit submission. Additionally, LSA will provide training to employees emphasizing the organizational policies requiring employee certification of their payroll timesheets. This change will be made within the next 90 days. Contact Person: George Fort, Director of Finance, (334) 223-0251; gfort@alsp.org

View Audit 399572

Finding 1208562 (2025-081)

Material Weakness 2025

State of Alaska

AK

Student Financial Aid Allowable Costs / Cost Principles Eligibility § 200.303

Finding: 2025-081 - During inquiries with management the University of Alaska identified multiple students during enrollment verification process that they determined were fictious. Questioned Costs: AL 84.007: 4,947, AL 84.063: 27,059, AL 84.268: 158,554 Assistance Listing Number: 84.063 84.268 84....

Finding: 2025-081 - During inquiries with management the University of Alaska identified multiple students during enrollment verification process that they determined were fictious. Questioned Costs: AL 84.007: 4,947, AL 84.063: 27,059, AL 84.268: 158,554 Assistance Listing Number: 84.063 84.268 84.007, 84.033 Assistance Listing Title: Student Financial Assistance Cluster (SFAC) Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): There is no disagreement with the audit finding. Corrective Action (corrective action planned): The university has been actively implementing process improvements across all campuses (UAF, UAA and UAS) to strengthen controls and prevent similar occurrences. Enhancements to the existing processes include the deployment of multilayered interim screening measures to mitigate fraudulent accounts and strengthen internal controls. In addition, the University has acquired a long-term software solution which is currently in the final phase of implementation, to further enhance identity verification procedures and strengthen cybersecurity capabilities. Completion Date (list anticipated completion date): May 31, 2026 Agency Contact (name of person responsible for corrective action): Amanda Wall, AVC, UAF Financial Services, 907-474-7552

View Audit 399484

Finding 1208551 (2025-033)

Material Weakness 2025

State of Alaska

AK

Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303 § 200.332

Finding: 2025-033 - DMVA staff did not document a risk assessment for two Disaster Grants subrecipients. Questioned Costs: None Assistance Listing Number: 97.036 Assistance Listing Title: Disaster Grants COVID- 19 Views of Responsible Officials (state whether your agency agrees or disagrees with the...

Finding: 2025-033 - DMVA staff did not document a risk assessment for two Disaster Grants subrecipients. Questioned Costs: None Assistance Listing Number: 97.036 Assistance Listing Title: Disaster Grants COVID- 19 Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): DMVA concurs with the finding Corrective Action (corrective action planned): The Homeland Security Director will conduct a thorough review of the documented sub-recipient risk assessment process to ensure that adequate review at the supervisor’s level complies with 2 CFR 200.332. Necessary updates to pertinent forms and manuals will be made to reflect federal requirements. Completion Date (list anticipated completion date): October 31, 2026 Agency Contact (name of person responsible for corrective action): Bryan Fisher

View Audit 399484

Finding 1208549 (2025-030)

Material Weakness 2025

State of Alaska

AK

Allowable Costs / Cost Principles Subrecipient Monitoring § 200.303 § 200.327 § 200.403

Finding: 2025-030 - A review of 17 FY 25 Disaster Grants payments found that 15 payments - (88 percent) lacked adequate supporting documentation. Questioned Costs: Indeterminate Assistance Listing Number: 97.036 Assistance Listing Title: Disaster Grants COVID- 19 Views of Responsible Officials (stat...

Finding: 2025-030 - A review of 17 FY 25 Disaster Grants payments found that 15 payments - (88 percent) lacked adequate supporting documentation. Questioned Costs: Indeterminate Assistance Listing Number: 97.036 Assistance Listing Title: Disaster Grants COVID- 19 Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): DMVA concurs with the finding Corrective Action (corrective action planned to ensure compliance with federal regulations and effective management of federal awards, the Finance Office, in conjunction with the Homeland Security Director, will develop and implement written procedures that provide a clear framework for managing federal awards and ensure compliance with federal regulations. DMVA will: • Clearly outline federal requirements under 2 CFR 200.327, 2 CFR 200.403(g), and Homeland Security Acquisition Regulation Class Deviation 15-01. • Specify the documentation required to support reimbursement requests, including expectations related to discrepancies and follow-up actions. • Outline the procedures for Homeland Security for reviewing and certifying work completed by contractors, where applicable, prior to reimbursement to subrecipients. Completion Date (list anticipated completion date): October 31, 2026 Agency Contact (name of person responsible for corrective action): Bryan Fisher

View Audit 399484

Finding 1208542 (2025-056)

Material Weakness 2025

State of Alaska

AK

Allowable Costs / Cost Principles Eligibility

Finding: 2025-056 - Sixty Medicaid and sixty CHIP recipients were randomly selected for eligibility testing. Testing revealed the following errors: Medicaid five of 60 cases lacked eligibility determination issues (note, some case had multiple deficiencies): • One of sixty case files lacked the prop...

Finding: 2025-056 - Sixty Medicaid and sixty CHIP recipients were randomly selected for eligibility testing. Testing revealed the following errors: Medicaid five of 60 cases lacked eligibility determination issues (note, some case had multiple deficiencies): • One of sixty case files lacked the proper case notes to properly maintain how the individual was determined eligible for payments. • One of sixty cases had an incorrect social security number entered into the ARIES system. In addition: • Five of sixty files lacked documentation of facts supporting the eligibility determination. • One of sixty participants did not meet income eligibility requirements. • Two of sixty cases lacked documentation to verify that the Income and Eligibility Verification System (IEVS) was used to verify income eligibility. CHIP 17 of 60 cases lacked eligibility: determination issues, (note, some case had multiple deficiencies). • One of sixty case files was missing a: CHIP-specific application that was signed of by the program recipient. • Three of the sixty identified cases had identified income that exceeded income limits or income was unable to be verified. • Four of sixty cases lacked documentation to verify that the Income and Eligibility Verification System was used, to verify income eligibi1ity. • Three of sixty cases were not properly closed after the period of eligibility to receive benefits had ended. • Four of sixty cases that had payments to programs participants that were deemed unallowable costs activities due to-multiple individual compliance issues. • Sixteen of sixty cases lacked adequate support for eligibility determinations/redeterminations. Questioned Costs: AL 93.778: 138 (known questioned costs); 37,006,989 (likely questioned costs), AL 93.767: 288 (known questioned costs); 582,269 (likely questioned costs) Assistance Listing Number: 93.767, 93.775, 93.777, 93.778 Assistance Listing Title: CHIP Medicaid Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department agrees with the finding but does not concur with the questioned costs. CMS has notified the state that financial recoveries based on eligibility errors can only be pursued when identified by programs operating under CMS’ Payment Error Rate Measurement (PERM) program, under section 1903(u) of the Social Security Act and regulations at 42 CFR Part 431, Subpart Q. Corrective Action (corrective action planned): The Division of Public Assistance will continue to perform case reviews and will randomly sample eligibility determinations to identify error trends and improve training opportunities. Case reviews that specifically target income and case documentation will be performed. The division will broadly message case documentation expectations as well as review in individual office meetings. The division will analyze its case documentation protocols and update them as necessary to ensure all relevant documentation supporting eligibility decisions are present in electronic case files. Completion Date (list anticipated completion date): The department anticipates the finding will be resolved in FY2027. Agency Contact (name of person responsible for corrective action): Pam Halloran, Assistant Commissioner

View Audit 399484

Finding 1208534 (2025-071)

Material Weakness 2025

State of Alaska

AK

Allowable Costs / Cost Principles Special Tests & Provisions § 200.403 § 200.404

Finding No. 2025-071 - Deficiencies were identified in the Office of Children’s Services FY25 foster care base rate setting methodology. Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): DFCS disagrees with this fin...

Finding No. 2025-071 - Deficiencies were identified in the Office of Children’s Services FY25 foster care base rate setting methodology. Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): DFCS disagrees with this finding. DFCS evaluated two foster care base rate proposals using the established Hornsby Zeller Methodology. The first option applied the traditional methodology and the second followed the same structure but incorporated Urban West regional expenditure data, which includes Alaska and eleven other western states as well as Hawaii. This change was implemented because Urban West data more accurately reflects Alaska’s high cost of living environment, whereas reliance on national averages has historically produced rates below Alaska’s true cost of care. Both options were reviewed with departmental legal counsel, who were involved in the original settlement, division leadership and the Commissioner’s Office. DFCS advanced the second option, resulting in an approximate 3000 increase to foster care base rate stipends effective July 1,2025. DFCS disagrees with the conclusion that the cost-of-living (inflation) factor should be adjusted to include inflation from 2016 forward. When the 2018 Foster Care Base Rates were established, inflation up to that point was already incorporated into the rate calculation. The current rate-setting process correctly used the 2018 rates as the baseline, which already accounted for prior inflation. Adding inflation from 2016 again would result in double-counting. DFCS disagrees with the conclusion that the rate-setting process did not follow the Hornsby Zeller methodology. The methodology was followed in full. As part of the rate analysis, DFCS applied the national average cost-of-living factor as outlined; however, the resulting amount did not adequately meet the needs of the children under the care and responsibility of the Department. DFCS is fiduciarily required to ensure that rates are sufficient to meet the actual needs of children in out-of-home care, and the national average input did not satisfy that obligation. To ensure the methodology produced accurate and appropriate results, DFCS utilized the Urban West index, an allowable and geographically relevant data source under the methodology. This adjustment did not change the methodology itself it refined the underlying input to better reflect Alaska’s actual cost of living and support the intended purpose of the rate-setting process. Corrective Action (corrective action planned): DFCS will continue to consult with legal counsel regarding any future methodology changes and will follow all guidance provided. Completion Date (list anticipated completion date): DFCS considers this matter resolved. Agency Contact (name of person responsible for corrective action): Nancy Miller, Finance Officer

View Audit 399484

Finding 1208533 (2025-070)

Material Weakness 2025

State of Alaska

AK

Allowable Costs / Cost Principles Student Financial Aid Eligibility

Finding No. 2025-070 - An evaluation of the Office of Children’s Services (OCS) Online Resources for the Children of Alaska (ORCA) system controls identified an internal control weakness. Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree,...

Finding No. 2025-070 - An evaluation of the Office of Children’s Services (OCS) Online Resources for the Children of Alaska (ORCA) system controls identified an internal control weakness. Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): DFCS agrees with the finding. Corrective Action (corrective action planned): OCS will be making modifications to the ORCA system that will automatically deactivate any user who has not logged in within 30 days during the ORCA update on 4 16 2026. Completion Date (list anticipated completion date): DFCS anticipates the finding will be resolved in FY2026. Agency Contact (name of person responsible for corrective action): Nancy Miller, Finance Officer

View Audit 399484

Finding 1208528 (2025-023)

Material Weakness 2025

State of Alaska

AK

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

Finding: 2025-023 - The Coordinated Early Intervening Services budgets for two Local Education Agencies exceeded the allowable federal limit. Questioned Costs: None Assistance Listing Number: 84.027, 84.173 Assistance Listing Title: Special Education Cluster Views of Responsible Officials (state whe...

Finding: 2025-023 - The Coordinated Early Intervening Services budgets for two Local Education Agencies exceeded the allowable federal limit. Questioned Costs: None Assistance Listing Number: 84.027, 84.173 Assistance Listing Title: Special Education Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department agrees with Finding 2025-023. Corrective Action (corrective action planned): DEED is awaiting guidance from the U.S. Department of Education (U.S. ED) to determine what action should be taken to correct the FY2025 issue. The GMS controls have been updated for FY2026 to prevent the issue from recurring. Completion Date (list anticipated completion date): Unknown dependent on U.S.ED Agency Contact (name of person responsible for corrective action): Deborah Riddle, Division Operations Manager, Division of Innovation & Education Excellence

View Audit 399484

Finding 1208524 (2025-028)

Material Weakness 2025

State of Alaska

AK

Allowable Costs / Cost Principles § 200.303 § 200.430

Finding: 2025-028 - One of 10 employee timesheets tested did not support the charges billed to the Congressionally Mandated Projects (CMP) program. Questioned Costs: 2,273 Assistance Listing Number: 66.202 Assistance Listing Title: CMP Views of Responsible Officials (state whether your agency agrees...

Finding: 2025-028 - One of 10 employee timesheets tested did not support the charges billed to the Congressionally Mandated Projects (CMP) program. Questioned Costs: 2,273 Assistance Listing Number: 66.202 Assistance Listing Title: CMP Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department agrees with this finding. Corrective Action (corrective action planned): This finding has been corrected. The Division of Community and Regional Affairs (DCRA) and the Division of Administrative Services (DAS) have reviewed and updated timesheet processing functions in DCRA. DAS has provided information and training to DCRA timekeepers and management staff on timesheet entry, timekeeping procedures, and time entry and review processes in the accounting system. Both DCRA and DAS management will continue to monitor time entry and timesheet processing to ensure that time is entered accurately. Completion Date (list anticipated completion date): I The corrective action plan was fully implemented on January 31, 2026. Agency Contact (name of person responsible for corrective action): Nichole Tham, Division Operations Manager, Division of Community and Regional Affairs.

View Audit 399484

Finding 1208517 (2025-068)

Material Weakness 2025

State of Alaska

AK

Allowable Costs / Cost Principles § 200.303 § 200.430

Single Audit Finding No. 2025-068 - For two out of 40 timesheets tested (five percent), the employees’ hours were inaccurately recorded in the State’s accounting system. Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain w...

Single Audit Finding No. 2025-068 - For two out of 40 timesheets tested (five percent), the employees’ hours were inaccurately recorded in the State’s accounting system. Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): I The department agrees with this finding and recommendation. Corrective Action (corrective action planned): Department management will implement additional training for time collectors and payroll entry staff and strengthen the review process to ensure the accuracy of timesheet entry moving forward. Completion Date (list anticipated completion date): June 30, 2026 Agency Contact (name of person responsible for corrective action): Shanna Burns, Human Resources Consultant 5

View Audit 399484

Finding 1208512 (2025-063)

Material Weakness 2025

State of Alaska

AK

Allowable Costs / Cost Principles § 200.303 § 200.430

Single Audit Finding No. 2025-063 - Three of 40 timesheets tested (eight percent) were entered into the State’s accounting system with incorrect coding. Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The departme...

Single Audit Finding No. 2025-063 - Three of 40 timesheets tested (eight percent) were entered into the State’s accounting system with incorrect coding. Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department agrees with this finding and recommendation. Corrective Action (corrective action planned): The department will reinforce timesheet entry and processing procedures, and the finance officer will provide additional training to administrative staff to avoid future errors. Completion Date (list anticipated completion date): June 30, 2026 Agency Contact (name of person responsible for corrective action): Michael White, Financial Services Manager

View Audit 399484

Finding 1208499 (2025-072)

Material Weakness 2025

State of Alaska

AK

Allowable Costs / Cost Principles Special Tests & Provisions Significant Deficiency § 200.303 § 200.329

Finding: 2025-072 - Alaska Energy Authority did not have controls in place for review of progress reports for this program. During our testing of reports, we noted that two of the five reports sampled did not have evidence of a formal review before submission. Questioned Costs: None Assistance Listi...

Finding: 2025-072 - Alaska Energy Authority did not have controls in place for review of progress reports for this program. During our testing of reports, we noted that two of the five reports sampled did not have evidence of a formal review before submission. Questioned Costs: None Assistance Listing Number: 10.859 Assistance Listing Title: Assistance to High Energy Cost Rural Communities Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): Agree Corrective Action (corrective action planned): Implement procedures to ensure that all compliance reports are reviewed by personnel independent of the preparer(s). Completion Date (list anticipated completion date): 01/15/2026 Agency Contact (name of person responsible for corrective action): Tim Sandstrom, Chief Operating Officer

View Audit 399484

Finding 1208498 (2025-050)

Material Weakness 2025

State of Alaska

AK

Allowable Costs / Cost Principles Special Tests & Provisions Procurement, Suspension & Debarment § 200.303

Finding: 2025-050 - Daily SNAP EBT reconciliations were not performed in FY 25. Questioned Costs: None Assistance Listing Number: 10.551, 10.561 Assistance Listing Title: SNAP Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, bri...

Finding: 2025-050 - Daily SNAP EBT reconciliations were not performed in FY 25. Questioned Costs: None Assistance Listing Number: 10.551, 10.561 Assistance Listing Title: SNAP Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department agrees with the finding. Corrective Action (corrective action planned): The Division of Public Assistance implemented a daily reconciliation and monitoring process and trained staff on the revised procedures. The division plans to be fully compliant and current in FY 2026. Completion Date (list anticipated completion date): The department anticipates the finding will be resolved in FY2026. Agency Contact (name of person responsible for corrective action): Pam Halloran, Assistant Commissioner

View Audit 399484

Finding 1208497 (2025-049)

Material Weakness 2025

State of Alaska

AK

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

Finding: 2025-049 - DOH’s information technology staff did not properly limit user access to EIS during FY25. Questioned Costs: None Assistance Listing Number: 10.551, 10.561 Assistance Listing Title: SNAP Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the...

Finding: 2025-049 - DOH’s information technology staff did not properly limit user access to EIS during FY25. Questioned Costs: None Assistance Listing Number: 10.551, 10.561 Assistance Listing Title: SNAP Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department agrees with the finding. Corrective Action (corrective action planned): The Division of Public Assistance will revise and strengthen the EIS account reconciliation process to include a change in cadence and update protocols for sponsored accounts. Completion Date (list anticipated completion date): The department anticipates the finding will be resolved in FY2026. Agency Contact (name of person responsible for corrective action): Pam Halloran, Assistant Commissioner

View Audit 399484

Finding 1208496 (2025-048)

Material Weakness 2025

State of Alaska

AK

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

Finding: 2025-048 - Testing of 72 FY 25 SNAP EBT issuances found two automated EIS benefit calculations that did not consider an increase in unearned income related to Alaska’s Senior Benefits Program. Questioned Costs: AL 10.551: 660 Assistance Listing Number: 10.551, 10.561 Assistance Listing Titl...

Finding: 2025-048 - Testing of 72 FY 25 SNAP EBT issuances found two automated EIS benefit calculations that did not consider an increase in unearned income related to Alaska’s Senior Benefits Program. Questioned Costs: AL 10.551: 660 Assistance Listing Number: 10.551, 10.561 Assistance Listing Title: SNAP Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department agrees with the finding. Corrective Action (corrective action planned): The Senior Benefits Program encountered a one-time mass change that did not result in an update on all affected cases. The Division of Public Assistance will correct the affected claims and refund associated Questioned Costs: The division will also review mass change protocols with leadership to ensure proper implementation to mitigate recurrence of resulting errors. Completion Date (list anticipated completion date): The department anticipates the finding will be resolved in FY2026. Agency Contact (name of person responsible for corrective action): Pam Halloran, Assistant Commissioner

View Audit 399484

Corrective Action Plans

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