Corrective Action Plans

Finding 28407 (2022-003)

Material Weakness 2022

WI

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

2022-003 Federal Assistance Listing Number ? All State ID Number - All Recommendation: We recommend that the District continue to evaluate the financial, compliance, and reporting requirements specific to federal and state awards administered by the District. The District should incorporate identifi...

2022-003 Federal Assistance Listing Number ? All State ID Number - All Recommendation: We recommend that the District continue to evaluate the financial, compliance, and reporting requirements specific to federal and state awards administered by the District. The District should incorporate identified opportunities to improve segregation of duties in written policies and procedures. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The District recently realigned responsibilities within the administrative team which included the appointment of a Curriculum Director. The new alignment now allows for the Curriculum Director to provide proper oversight of Title funds, and the Pupil Services Director will provide oversight of IDEA funding. The Director of Finance will continue to collaborate with the respective directors as a fiscal contact for federal awards, but grant coordination will be delegated to the respective department heads. Name of the contact person responsible for corrective action: Deborah Kerr, District Superintendent Planned completion date for corrective action plan: On-going

View Audit 36188

Finding 28404 (2022-093)

Significant Deficiency 2022

State of Maine

ME

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

Department: Administrative and Financial Services Title: Internal control over expenditure processing needs improvement Questioned Costs: Known: 59,759 Likely: Undeterminable Status: Corrective action complete Corrective Action: The Department will reverse the unallowable charge to the HSGP grant. ...

Department: Administrative and Financial Services Title: Internal control over expenditure processing needs improvement Questioned Costs: Known: 59,759 Likely: Undeterminable Status: Corrective action complete Corrective Action: The Department will reverse the unallowable charge to the HSGP grant. The Department will provide additional training for data entry and invoice approval processes. Completion Date: March 1, 2023 and March 31, 2023 respectively Agency Contact: Marilyn Leimbach, Director, Service and Employment Service Center, DFPS, DAFS, 207-248-2556

View Audit 32781 Questioned Costs: $1

Finding 28333 (2022-001)

Significant Deficiency 2022

Prohealth Care, Inc. and Affiliates

WI

Allowable Costs / Cost Principles Reporting Significant Deficiency

Finding Number: 2022-01 Condition: The Corporation?s controls in place for reporting submissions did not identify that guidelines were not followed related to the reporting of expenses. Planned Corrective Action: Reviews of the PRF allowable expenditures and stats are reviewed by the Chief Financi...

Finding Number: 2022-01 Condition: The Corporation?s controls in place for reporting submissions did not identify that guidelines were not followed related to the reporting of expenses. Planned Corrective Action: Reviews of the PRF allowable expenditures and stats are reviewed by the Chief Financial Officer, as prepared by the Accounting Manager and Reimbursement Manager. The PRF portal Excel template is populated by the Reimbursement Manager and manually keyed into the portal. The Chief Financial Officer reviews the Excel template, tracing back to source documents, and reviews the portal print out for consistency given manual keying. The finding was due to a misunderstanding of the portal not wanting cumulative data from prior submissions with having prior period fields still open for input (like the stat reporting section). This was found by management with the final Phase 4 PRF submission where expenses were not allowed to be input due to reaching the total PRF funds, but expenses tracked never fully reached that level. Management made a request to HRSA to reopen Phase 3 reporting to correct the error and was told they would not reopen for correction (see attached file). Management has and will continue to follow up if a correction can be made; however, per discussion with the agent, they likely would not given PHC?s lost revenues more than cover the error in reporting. Management will continue to thoroughly review this and any other grant reporting submissions and ensure a full understanding of such requirements as well as check totals provided by the reporting mechanism. Related to the PRF grant compliance, final Phase 4 filing was completed and no further compliance or reporting needs remain in the future for PRF at this time. Contact person responsible for corrective action: Andy Gutierrez, Chief Financial Officer Anticipated Completion Date: 03/31/2023 coinciding with PHC?s final Phase 4 PRF submission

View Audit 31020

Finding 28325 (2022-007)

None 2022

Collins-Maxwell Community School District

IA

Allowable Costs / Cost Principles Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking

Response and Corrective Action Plan: The District will ensure charges to federal programs are properly documented by maintaining supporting documentation such as invoices or other source documents. Sherri Ruzek.

View Audit 31018

Finding 28316 (2022-087)

Significant Deficiency 2022

State of Maine

ME

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

Department: Health and Human Services Title: Internal control over the outsourced medical claims coding process needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department obtained and provided the RISSNET files to the vendor. The Department compl...

Department: Health and Human Services Title: Internal control over the outsourced medical claims coding process needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department obtained and provided the RISSNET files to the vendor. The Department completed the processing of RISSNET data in the MIHMS system with the vendor. The Department will validate the RISSNET data was processed correctly. The UAT team will validate all steps are complete to ensure compliance. Completion Date: September 30, 2022 (first and second items), June 15, 2023 (third item) and June 30, 2023 (fourth item) Agency Contact: Michelle Probert, Director, Office of MaineCare Services, DHHS, 207-287-2093

View Audit 32781

Finding 28315 (2022-086)

Significant Deficiency 2022

State of Maine

ME

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

Department: Health and Human Services Title: Internal control over deceased client cases and claims analysis needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department will complete a review of claims identified by OSA and if that analysis sugges...

Department: Health and Human Services Title: Internal control over deceased client cases and claims analysis needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department will complete a review of claims identified by OSA and if that analysis suggests that procedures need to be enhanced, the Department will do so. Completion Date: May 31, 2023 Agency Contact: Anthony Pelotte, Director, Office for Family Independence, DHHS, 207-624-4104

View Audit 32781

Finding 28314 (2022-085)

Significant Deficiency 2022

State of Maine

ME

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

Department: Health and Human Services Title: Internal control over cost of care assessments needs improvement Questioned Costs: Undeterminable Status: Management?s opinion is that corrective action is not required Corrective Action: The Department agrees with the two exceptions found by the Office o...

Department: Health and Human Services Title: Internal control over cost of care assessments needs improvement Questioned Costs: Undeterminable Status: Management?s opinion is that corrective action is not required Corrective Action: The Department agrees with the two exceptions found by the Office of the State Auditor. However, we believe that the Department has reasonable assurance with the controls in place that results in a 97% compliance rate with the COC calculations, which is a 2% increase from last year. In the prior year's finding the Department committed to continuing to achieve a 95% compliance rate and CMS agreed with the Department and closed the prior finding. No corrective action is necessary as a result of an error rate of only 3%. The Department will continue to actively manage and monitor the Cost of Care system in compliance with federal regulations. Completion Date: N/A Agency Contact: Anthony Pelotte, Director, Office for Family Independence, DHHS, 207-624-4104

View Audit 32781 Questioned Costs: $1

Finding 28313 (2022-084)

Significant Deficiency 2022

State of Maine

ME

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

Department: Health and Human Services Administrative and Financial Services Title: Internal control over Medicare Part B premium payments needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Office for Family Independence (OFI) will incorporate the CM...

Department: Health and Human Services Administrative and Financial Services Title: Internal control over Medicare Part B premium payments needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Office for Family Independence (OFI) will incorporate the CMS business change processes (ELMO portal) into the Buy-In Reconciliation standard operating procedures. OFI will implement technology improvements in support of reducing manual data entry and increased regulatory compliance. Completion Date: September 30, 2023 and June 1, 2024 respectively Agency Contact: Anthony Pelotte, Director, Office for Family Independence, DHHS, 207-624-4104

View Audit 32781

Finding 28289 (2022-079)

Significant Deficiency 2022

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 the CCDF Cluster eligibility determination process needs improvement Questioned Costs: None Status: Management?s opinion is that corrective action is not required Corrective Action: DHHS believes the current internal controls that ar...

Department: Health and Human Services Title: Internal control over the CCDF Cluster eligibility determination process needs improvement Questioned Costs: None Status: Management?s opinion is that corrective action is not required Corrective Action: DHHS believes the current internal controls that are in place provide reasonable assurance that DHHS is managing the funds in compliance with all regulations. Reasons include; ? The ongoing quality assurance process is one of the major controls in place. In 2019, the OCFS Quality Assurance (QA) team, separate from the Child Care Subsidy Program (CCSP) team, comprised of 10 staff, began conducting 23 CCSP case reviews per month. This is systematic monitoring. QA uses the initial documentation submitted by the parent (applications, proof of income, etc.) and checks it against the information in the MACWIS system to ensure eligibility is calculated correctly and data was entered accurately. ? A summary of findings from the QA check is provided to CCSP management each month. CCSP management documents the needed remediation plan, with the Financial Resource Specialist (FRS) making the necessary corrections as soon as possible. Additionally, CCSP management conducts internal periodic audits of files and evaluates deficiencies. ? Information Technology Controls minimizes potential errors by utilizing pre-defined drop-down menus of approved entries. Several fields limit the number of characters allowed to be entered or only allow numeric entries. ? The Information Technology system provides an enhanced internal control that provides visual cues to enter dollar amounts. Users receive an error message if data is entered incorrectly. ? The Financial Resource Specialist Staff Manual provides detailed, step-by-step instructions of the process for entering information into the Information Technology system to ensure accuracy and consistency of data entry. Staff are trained using this manual and are provided ongoing access to the manual. Staff undergo regular training on the eligibility determination process. DHHS believes the process and technical solutions in place are a reasonable attempt to assure proper eligibility determination for CCSP funding. Completion Date: N/A Agency Contact: Todd Landry, Director of the Office of Child and Family Services, DHHS, 207-624-7900

View Audit 32781

Finding 28287 (2022-077)

Significant Deficiency 2022

State of Maine

ME

Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.302 § 200.303 § 200.403

Department: Administrative and Financial Services Title: Internal control over Child Support Enforcement expenditures needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Division of Support Enforcement and Recovery and the Judicial Branch will revisi...

Department: Administrative and Financial Services Title: Internal control over Child Support Enforcement expenditures needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Division of Support Enforcement and Recovery and the Judicial Branch will revisit and modify the terms and language of the cooperative agreement to help clarify that all allowable costs subject to federal financial participation are adequately and timely documented. Completion Date: June 1, 2023 Agency Contact: Jerry Joy, Director, Division of Support Enforcement and Recovery, DHHS, 207- 624-6985

View Audit 32781

Finding 28257 (2022-067)

Material Weakness 2022

State of Maine

ME

Questioned Costs Allowable Costs / Cost Principles § 200.303 § 200.403

Department: Health and Human Services Title: Internal control over payments made to and on behalf of TANF clients needs improvement Questioned Costs: Known: $1,447 Likely: $35,002 Status: Management?s opinion is that corrective action is not required Corrective Action: The Department?s effective int...

Department: Health and Human Services Title: Internal control over payments made to and on behalf of TANF clients needs improvement Questioned Costs: Known: $1,447 Likely: $35,002 Status: Management?s opinion is that corrective action is not required Corrective Action: The Department?s effective internal controls identified the overpayments, made the referrals, and followed procedures for two of the four exceptions noted. The two exceptions that we did not identify as overpayments we believe are in accordance with the reasonably calculated requirement to accomplish one or more of the four TANF purposes and should not be considered unallowable. The criteria cited do not indicate any requirement to recoup funds within a specific time frame and the exceptions noted demonstrate the effective internal controls rather than indicate any misuse of funds. Completion Date: N/A Agency Contact: Anthony Pelotte, Director, Office for Family Independence, DHHS, 207-624-4104

View Audit 32781 Questioned Costs: $1

Finding 28253 (2022-003)

Material Weakness 2022

San Antonio Community Hospital

CA

Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles HUD Housing Programs

Finding 2022-003 Internal Control Deficiency and Non-compliance over Reporting Federal Grantor: United States Department of Health and Human Services, Health Resources and Services Administration (HRSA) Assistance Listing No.: 93.498 Award Period of Performance: January 1, 2020 ? December 31, 2...

Finding 2022-003 Internal Control Deficiency and Non-compliance over Reporting Federal Grantor: United States Department of Health and Human Services, Health Resources and Services Administration (HRSA) Assistance Listing No.: 93.498 Award Period of Performance: January 1, 2020 ? December 31, 2022 Summary of Finding: The Hospital?s reporting submissions did not follow the published HRSA guidance related to the reporting of lost revenue. Internal controls over the method used to report lost revenues in the HRSA and ARP reports were not precise enough to identify the submissions were not compliant with HRSA reporting guidance. Corrective Action Plan: Management will ensure internal controls are in place to identify the submissions are compliant with HRSA reporting guidelines. Responsible Party: Wah-chung Hsu, Chief Financial Officer Anticipated Completion Date: December 31, 2023

View Audit 31392

Finding 28200 (2022-005)

Material Weakness 2022

Metropolitan School District of Steuben County

IN

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

FINDING 2022-005 Contact Person Responsible for Corrective Action: Kathy Bahr Contact Phone Number: 260-316-5797 Views of Responsible Official: MSD of Steuben will work in collaboration with Northeast Indiana Special Education Cooperative and the DeKalb Eastern Treasurer (LEA) Description of Correct...

FINDING 2022-005 Contact Person Responsible for Corrective Action: Kathy Bahr Contact Phone Number: 260-316-5797 Views of Responsible Official: MSD of Steuben will work in collaboration with Northeast Indiana Special Education Cooperative and the DeKalb Eastern Treasurer (LEA) Description of Corrective Action Plan: MSD of Steuben will work with the Northeast Indiana Special Education Cooperative (NEISEC) to implement the procedures detailed below. NEISEC Treasurer will reach out to MSD of Steuben during the writing process of the IDEA 611 and 619 grants in order for MSD of Steuben to submit their plans for their allocation of proportionate share money. NEISEC will provide the allocation amounts to MSD of Steuben. These submissions will include a proportionate share budget and include proportionate share staff names and any necessary information for the budget categories. The NEISEC Treasurer will then compile the proportionate share information on the grant submission. The LEA Treasurer will be given a copy of the grant application and budget upon approval of the grant. Any NEISEC employee being paid out of proportionate share grant funds for salary and benefits will be paid from the LEA?s financial software. The LEA Treasurer will keep a spreadsheet of employee proportionate share expenses and this spreadsheet will be updated monthly based on time and effort logs that are submitted by MSD of Steuben to the LEA and NEISEC. Any employee utilizing proportionate share funds that is not an employee of NEISEC, but rather a direct employee of MSD of Steuben, will be paid directly by MSD of Steuben. Time and effort logs will still be submitted to the LEA and NEISEC Treasurers for these employees in order to generate a direct reimbursement from the grant fund to the member school. For any expenses for a category outside of salary and benefits, MSD of Steuben will submit an invoice and proof of purchase for equipment, supplies, etc. to NEISEC and the LEA in order to be directly reimbursed for those proportionate share expenses. If the request was not in the initial grant budget, MSD of Steuben will submit all relevant information to NEISEC in order for a grant modification to be completed. Per IDOE, the grant modification must be approved first prior to purchasing the items. Time and effort logs as well as invoice and proof of payment will be sent to the LEA Treasurer in order to complete the grant reimbursement requests. At the end of the grant period, any remaining proportionate share money will require that a waiver be completed. As of this date (2/10/2023) the LEA (DeKalb County Eastern CSD) and NEISEC are still in communication with SBOA and IDOE to review the proportionate share plan and ensure all necessary requirements will be satisfied. This will be communicated with MSD of Steuben. Anticipated Completion Date: Changes discussed above will be implemented for the remainder of the FY23 grant period starting 07/01/2023.

View Audit 30930

Finding 28185 (2022-002)

Material Weakness 2022

Metropolitan School District of Steuben County

IN

School Nutrition Programs Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.303

Contact Person Responsible for Corrective Action: Stephanie Haynes- Clifford, Food Service Director Contact Phone Number: 260 665 2854 Extension 1202 Views of Responsible Official: The School Corporation had not separated activities related to payroll withholding and benefit disbursements. These wer...

Contact Person Responsible for Corrective Action: Stephanie Haynes- Clifford, Food Service Director Contact Phone Number: 260 665 2854 Extension 1202 Views of Responsible Official: The School Corporation had not separated activities related to payroll withholding and benefit disbursements. These were paid without evidence of review and approval by a person not involved in the original disbursement process. Description of Corrective Action Plan: Effective immediately, Payroll initials and dates all activities related to payroll withholding and benefit disbursements. Additionally, The Business Managers reviews and approves by initialing and dating. Anticipated Completion Date: January 2023

View Audit 30930

Finding 28164 (2022-052)

Material Weakness 2022

State of Maine

ME

Questioned Costs Allowable Costs / Cost Principles § 200.303 § 200.403

Department: Education Title: Internal control over ESF expenditures needs improvement Questioned Costs: Known: $620,676 Likely: $6,364,627 Status: Management?s opinion is that corrective action is not required Corrective Action: The Maine Department of Education (MDOE) disagrees with the identified ...

Department: Education Title: Internal control over ESF expenditures needs improvement Questioned Costs: Known: $620,676 Likely: $6,364,627 Status: Management?s opinion is that corrective action is not required Corrective Action: The Maine Department of Education (MDOE) disagrees with the identified questioned costs. The Office of Federal Emergency Relief Programs (OFERP) utilized guidance provided by the U.S. Department of Education (grantor) and conferred in writing with Maine?s assigned U.S. Department of Education program officer throughout the Education Stabilization Fund application review process. The Maine Department of Education?s OFERP provided the auditor with the grantor?s guidance which clearly states that the questioned costs were allowable, reasonable, and necessary to prepare, prevent, and respond to the COVID-19 pandemic. Throughout the application review process, OFERP utilized ESF federal statutory language and the grantor?s published guidance to determine allowability. Once funding applications were approved, SAUs requested reimbursement from the OFERP for the approved costs outlined in the school administrative unit (SAU) application. The OFERP reviewed SAU reimbursement requests and provided payment for approved expenses. The ESF costs outlined in this finding were allowable, reasonable, and necessary to prepare, prevent, and respond to the COVID-19 pandemic. Documentation provided by the grantor supports the determinations made by the Maine Department of Education. Completion Date: N/A Agency Contact: Shelly Chasse-Johndro, Director of OFERP, DOE, 207-458-3180

View Audit 32781 Questioned Costs: $1

Finding 28162 (2022-051)

Material Weakness 2022

State of Maine

ME

Questioned Costs Allowable Costs / Cost Principles § 200.1 § 200.302 § 200.303 § 200.403

Department: Labor Administrative and Financial Services Title: Internal control over CSLFRF expenditures needs improvement Questioned Costs: Known: $51,482,644 Likely: $51,482,644 Status: Management?s opinion is that corrective action is not required Corrective Action: We disagree with this finding....

Department: Labor Administrative and Financial Services Title: Internal control over CSLFRF expenditures needs improvement Questioned Costs: Known: $51,482,644 Likely: $51,482,644 Status: Management?s opinion is that corrective action is not required Corrective Action: We disagree with this finding. Likewise, we are unable to determine why the auditor has identified a questioned cost or includes a recommendation that only allowable costs are funded by CSLFRF. The transfer of $80 million to the Unemployment Trust Fund is completely allowable, with a portion categorized under the Public Health and Economic Impacts use category and a portion under the Revenue Loss - Provision of Government Services use category. All documentation to support the allowability of this transfer was provided to the auditor for review. There were errors in the original calculation of the total amount eligible under the Public Health and Economic Impacts category; however, we provided documentation to support that the total amount was eligible under the Revenue Loss - Provision of Government Services use category. Although we have identified a weakness in internal control over compliance, there was no actual noncompliance. Consequently, there is no cost that is considered unallowable; therefore, there should be no questioned cost. Completion Date: N/A Agency Contact: DOL Contact: Kimberly Smith, Deputy Commissioner, Department of Labor, 207-621-5096 DAFS Contact: Frank Wiltuck, Director of Internal Audit, OSC, 207-626-8420

View Audit 32781 Questioned Costs: $1

Finding 28151 (2022-045)

Material Weakness 2022

State of Maine

ME

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

Department: Labor Title: Internal control over UI claim payments needs improvement Questioned Costs: Known: $19,278 Likely: $2,700,000 Status: Management?s opinion is that corrective action is not required (first item) Corrective action in progress (remaining items) Corrective Action: The Department...

Department: Labor Title: Internal control over UI claim payments needs improvement Questioned Costs: Known: $19,278 Likely: $2,700,000 Status: Management?s opinion is that corrective action is not required (first item) Corrective action in progress (remaining items) Corrective Action: The Department disagrees with the findings around the PUA program and the timing of the notices to provide Proof of Employment for continued eligibility. USDOL in its guidance acknowledged that it would take time to implement the new requirement from a systems and operational perspective. The Department worked diligently to implement the new requirement (along with other requirements from the CAA) as soon as possible. Furthermore, the PUA program was a one-time program created by the Federal government in response to the COVID-19 pandemic, to provide monetary support to those individuals who traditionally do not qualify for unemployment compensation benefits. All CARES Act programs, including PUA, ended in September, 2021. At this time there is no corrective action we can take, as the program no longer exists in its prior form. At most we may still see PUA eligibility as a result of a pending appeal, or court case. We will follow established processes at that time, which are based on Federal guidance provided. The Department will add a text field to obtain more information on the location of a job fair or the name of an activity when a claimant reports a CareerCenter job fair or other activity as a work search. Information will be provided to businesses through a new report for review. The Department will create a work search issue for fact-finding and possible adjudication when a claimant reports a CareerCenter Job Fair or other activity as a work search more than three times. The Department will review functionality of Vital Statistics Crossmatch to ensure that all data related to date of death for active claimants is received as timely as possible. The Department will add system controls when entering a date of birth, both for claimants and businesses to prevent avoidable data entry errors. Completion Date: June 30, 2023 (second and third items), June 30, 2024 (fourth and fifth items) Agency Contact: Laura Boyett, Director, Bureau of Unemployment Compensation, DOL, 207-621-5156

View Audit 32781 Questioned Costs: $1

Finding 28150 (2022-021)

Significant Deficiency 2022

State of Maine

ME

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

Department: Labor Administrative and Financial Services Title: Internal control over valuing estimates for the allowances for uncollectible unemployment insurance receivables needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Office of the State Con...

Department: Labor Administrative and Financial Services Title: Internal control over valuing estimates for the allowances for uncollectible unemployment insurance receivables needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Office of the State Controller (OSC) will provide guidance to the Department of Labor (DOL) to develop a reporting mechanism that will provide a more detailed analysis of the activity of the receivable balances. The OSC is responsible for determining the estimates in the financial statements. The accounting estimates are based on subjective, as well as, objective factors; therefore, professional judgement is required to estimate an amount for uncollectible receivables using an aging methodology, which is considered a common and acceptable method within the industry. Management's opinion is that this method is not overly sensitive to variations, is consistent with historical patterns and is not overly subjective or susceptible to bias. Applying this methodology, the OSC and the DOL accumulate relevant, sufficient, and reliable data on which to base the estimate. Additionally, we believe that the estimate is presented in conformity with the applicable accounting principles and that disclosure is adequate. The OSC recently performed a five-year trend analysis of historical collections with information provided by the DOL. The OSC compared the percentages and the assumptions used in the past and updated the reserve percentages accordingly. The OSC will continue to use the rolling year trend analysis with the actual collection data, as provided by the DOL, to update the reserve percentage. The DOL implemented a new system and the OSC will continue to review the reserve process to ensure the allowance continues to be valued properly. Completion Date: June 30, 2023 Agency Contact: Stacey Thomas, Financial Management Coordinator, OSC, 207-626-8431

View Audit 32781

Finding 28147 (2022-046)

Significant Deficiency 2022

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: Corrective action in progress Corrective Action: The Department will require Service Center and Agency HR Directors t...

Department: Administrative and Financial Services Title: Internal control over monitoring of employee classification and compensation needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department will require Service Center and Agency HR Directors to notify supervisors at least twice per year of overdue performance evaluations. The Department will require Service Center and Agency HR Directors to review Hiring Requests to ensure duties identified are consistent with classifications. The Department will require Service Center and Agency HR Directors and/or HR recruiters to review job vacancy postings to ensure duties are consistent with classifications. The Department will implement a 'review of classification specification date' on class specs (currently only note date when a change is made). Completion Date: October 1, 2023 (first item), and April 30, 2023 (remaining items) Agency Contact: Breena D Bissell, Director, Bureau of Human Resources, DAFS, 207-215-0886

View Audit 32781

Finding 28116 (2022-019)

Significant Deficiency 2022

State of Maine

ME

Allowable Costs / Cost Principles Reporting Significant Deficiency § 200.303

Department: Administrative and Financial Services Health and Human Services Title: Internal control over financial reporting of OFI overpayments needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department of Health and Human Services and the Offic...

Department: Administrative and Financial Services Health and Human Services Title: Internal control over financial reporting of OFI overpayments needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department of Health and Human Services and the Office of the State Controller agree that the variance between the receivable and reserve should be booked as a deferred inflow. A claim termination policy will be established in accordance with federal regulations. Completion Date: June 30, 2023 Agency Contact: Sandra Royce, Director of Financial Reporting, OSC, 207-626-8451 Anthony Pelotte, Director, Office for Family Independence, DHHS, 207-624-4104

View Audit 32781

Finding 28105 (2022-043)

Significant Deficiency 2022

State of Maine

ME

Questioned Costs Allowable Costs / Cost Principles Eligibility § 200.303

Department: Education Title: Internal control over CACFP eligibility needs improvement Questioned Costs: Known: $50,275 Likely: Undeterminable Status: Corrective action complete Corrective Action: The Department added to the check list a space for the on-site documentation for the pre-approval site ...

Department: Education Title: Internal control over CACFP eligibility needs improvement Questioned Costs: Known: $50,275 Likely: Undeterminable Status: Corrective action complete Corrective Action: The Department added to the check list a space for the on-site documentation for the pre-approval site visit to be uploaded into CNPWeb. The Department made the pre-site visit mandatory before the start of the program. Completion Date: March 6, 2023 Agency Contact: Jane McLucas, Director of Child Nutrition, DOE, 207-624-6880

View Audit 32781 Questioned Costs: $1

Finding 28103 (2022-041)

Material Weakness 2022

State of Maine

ME

Questioned Costs Allowable Costs / Cost Principles § 200.303 § 200.403

Department: Education Title: Internal control over CACFP claim reimbursements needs improvement Questioned Costs: Known: $11,222 Likely: Undeterminable Status: Management?s opinion is that corrective action is not required Corrective Action: The Department disagrees with this finding. As explained t...

Department: Education Title: Internal control over CACFP claim reimbursements needs improvement Questioned Costs: Known: $11,222 Likely: Undeterminable Status: Management?s opinion is that corrective action is not required Corrective Action: The Department disagrees with this finding. As explained to OSA by DOE, DHHS, and USDA, Child Care Centers/Providers can enroll and claim over the licensed capacity. The claim edit check that was in place for SY22 for DCH Providers was Total Monthly Attendance x Approved Meal Types due to the fact that providers can enroll over the licensed capacity. Sponsors have been trained: Total Monthly Attendance equals the number of unique kids who attended during the day, are enrolled in CACFP and who ate at least one meal or snack during the day, then add up those daily totals for the month. To use licensed capacity as an edit check, which OSA did to calculate the costs in question, disallows provider reimbursement for eligible meals. CACFP Total Monthly Attendance is a better edit check as it only calculates attendance for enrolled participants. For the provider claims in question the CACFP Team tested them against the Total Monthly Attendance edit check and none suggest an overclaim. The CACFP Team discovered the missing enrollment edit check on 8/24/22 and immediately submitted a ticket to the web designers. This correction required multiple meetings with the web designers and in-depth system testing. The correction to the edit check was completed on 12/23/22. The claim edit checks now in place are: Attendance x Approved Meal Types (same as before) ? AND- Enrollment x Operating Days x Approved Meal Types. Completion Date: N/A Agency Contact: Jane McLucas, Director of Child Nutrition, DOE, 207-624-6880

View Audit 32781 Questioned Costs: $1

Finding 28099 (2022-001)

Significant Deficiency 2022

Acled Analysis Incorporated

WI

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

Name of contract person: Amanda Bertran, Senior Finance Manager Corrective Action: Currently, the Finance Coordinator reviews the timesheets completed on time each pay period. Then, the Senior Finance Manager reviews the proper grants allocation in the journal entry. The management will strengthen t...

Name of contract person: Amanda Bertran, Senior Finance Manager Corrective Action: Currently, the Finance Coordinator reviews the timesheets completed on time each pay period. Then, the Senior Finance Manager reviews the proper grants allocation in the journal entry. The management will strengthen the controls to review personnel allocations processes to ensure accuracy. The Finance Coordinator will generate payroll reports to review timesheet allocations to grants and complete the effort table accordingly to provide the outside accounting firm for the review and recording. The Senior Finance Manager will review the journal entry posted by the accounting firm to make sure there are no discrepancies between timesheets and payroll grant allocations. Proposed Completion Date: The Organization will implement the above procedure starting January 01, 2023.

View Audit 27895 Questioned Costs: $1

Finding 28051 (2022-031)

Material Weakness 2022

State of Maine

ME

Allowable Costs / Cost Principles School Nutrition Programs Internal Control / Segregation of Duties § 200.303

Department: Education Title: Internal control over Child Nutrition claim reimbursements needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department will offer updated SSO training to include specific procedure on meal counting and claiming by buil...

Department: Education Title: Internal control over Child Nutrition claim reimbursements needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department will offer updated SSO training to include specific procedure on meal counting and claiming by building. The Department will create a policy for oversight of claiming procedures during SSO operations. The Department will implement policies and procedures to review and approved CNP system changes. Completion Date: June 1, 2023 (first two items) and June 30, 2023 (third item) Agency Contact: Jane McLucas, Director of Child Nutrition, DOE, 207-624-6880

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Finding 28048 (2022-082)

Material Weakness 2022

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 the eligibility determination process 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 systems we have ...

Department: Health and Human Services Title: Internal control over the eligibility determination process 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 systems we have in place are both necessary and sufficient in meeting programmatic requirements to ensure accurate eligibility determinations are being made. There has been no citation of federal regulation provided by OSA during this review that contradicts this. The Department would like to note: 1. Supervisors do a minimum of 1 case reading per month and a minimum of 1 call monitoring per week for staff on phones. It is commonplace for them to do more, especially for a new employee, or known coaching issues. 2. These case readings were tracked by supervisors and units and were tracked centrally on our Streamline Management Y-Drive in SFY2022. 3. Phone calls can be referenced by Supervisors in real time or afterwards, via recording. 4. Specifics of case reading, and call monitoring were formalized with specific expectations in multiple categories, which were followed up on by coaching staff if not all of the expectations were met. With a goal of continuous improvement, it was also noted to the OSA that we formally implemented the Calabrio System which dramatically enhanced and further automated our ability to track Case Readings and Call Monitoring performance statewide in June of 2022. A corresponding user guide was also developed and implemented in June of 2022. This example of continuous quality improvement has led to a more holistic understanding of trends and training needs. Furthermore, SNAP cases are randomly selected and reviewed by USDA partially-funded SNAP Quality Control staff. These findings are reported monthly to FNS and OFI senior management. A team of QC, training, program, operations, business technology and senior management meet bi-weekly to review trends and implement solutions. These have included technological enhancements, reminder e-mails, targeted trainings, and pop quizzes. While this effort focuses on SNAP, the vast majority of SNAP cases also involve MaineCare, and some include TANF. Solutions for one program typically aid all. Completion Date: N/A Agency Contact: Anthony Pelotte, Director, Office for Family Independence, DHHS, 207-624-4104

View Audit 32781

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