Corrective Action Plans

Finding 1240353 (2025-102)

Material Weakness 2025

AZ

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

The County did not ensure 10 payments totaling $62,400 for the Public Health Emergency Preparedness Program were reviewed and approved by independent appropriate personnel. Assistance Listings numbers and names: 93.069 Public Health Emergency Preparedness Questioned costs: $62,400 Contact Name: Rene...

The County did not ensure 10 payments totaling $62,400 for the Public Health Emergency Preparedness Program were reviewed and approved by independent appropriate personnel. Assistance Listings numbers and names: 93.069 Public Health Emergency Preparedness Questioned costs: $62,400 Contact Name: Rene Ontiveros Corrective Action Planned: The County Administrator/Deputy County Administrator will review and sign the purchase orders created that are made payable to the contracted Health Director for the Public Health Emergency Preparedness Program. Anticipated Completion Date: July 1, 2026

View Audit 414870

Finding 1240337 (2025-001)

Material Weakness 2025

Judson Terrace, Inc.

OH

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

S3800-090 Auditor's Summary of the Auditee's Comments on the Finding and Recommendations The Organization concurs that the Project paid payroll expenses belonging to other projects. S3800-130 Response Indicator Agree S3800-140 Completion Date December 31, 2026 S3800-150 Response Management will retu...

S3800-090 Auditor's Summary of the Auditee's Comments on the Finding and Recommendations The Organization concurs that the Project paid payroll expenses belonging to other projects. S3800-130 Response Indicator Agree S3800-140 Completion Date December 31, 2026 S3800-150 Response Management will return $33,907 to the Project. S3800-160 Contact Person First Name Mary S3800-180 Contact Person Last Name Loesche

View Audit 414861

Finding 1240336 (2025-003)

Material Weakness 2025

Hamilton County General Health District

OH

Allowable Costs / Cost Principles Subrecipient Monitoring Matching / Level of Effort / Earmarking § 200.405

All RMS’s will be accepted by RMS Coordinators within 72 hours of the observation moment. RMS coordinators will regularly complete training with RMS section chiefs, supervisors, and participants on the importance of timely completion of RMS observations. RMS coordinators will provide RMS tips and hi...

All RMS’s will be accepted by RMS Coordinators within 72 hours of the observation moment. RMS coordinators will regularly complete training with RMS section chiefs, supervisors, and participants on the importance of timely completion of RMS observations. RMS coordinators will provide RMS tips and hints to participants and supervisors regarding the importance of timeliness of RMS. RMS “Passport” training will be conducted with Top Management in March of 2027. A new RMS Dashboard was created to advise Program leadership of RMS data and participant trends. RMS Supervisor validation data will be reviewed and shared with HCJFS leadership on a quarterly basis. The issues noted in RMS Audit will be shared with the RMS stakeholders. New Fiscal Analyst with be trained as RMS Backups to help ensure timeliness. The 8-minute RMS training video offered on the Beacon and an RMS “one pager” refresher was shared with RMS participants, supervisors, section chiefs on 09/08/2026. Guidance was provided to review both materials by 09/31/2026. HCJFS will implement this on a yearly basis moving forward. The RMS Supervisor and RMS Coordinators will have a better understanding to accept RMS’s timely, no matter who initially started the RMS correction conversation with the participant. The RMS Supervisor will conduct monthly spot checks of each cost pool to ensure timely completion of RMS observations.

View Audit 414858

Finding 1240245 (2025-005)

Material Weakness 2025

Philander Smith College

AR

Allowable Costs / Cost Principles Cash Management Material Weakness § 200.430

Federal Program / Assistance Listing Number (ALN) 84.031 Finding Reference Number 2025-005 1. Finding Summary The auditor noted exceptions in payroll cost allocations and time and effort reporting in testing over the Title III program. 2. Management's Position Management agrees with the finding. Man...

Federal Program / Assistance Listing Number (ALN) 84.031 Finding Reference Number 2025-005 1. Finding Summary The auditor noted exceptions in payroll cost allocations and time and effort reporting in testing over the Title III program. 2. Management's Position Management agrees with the finding. Management Explanation Management agrees with the finding and acknowledges that the exceptions related to two (2) Title III employees who need additional training on how to properly complete the relevant forms. 3. Root Cause Analysis The root cause was a gap in understanding of how the time and effort form should be completed and how the payroll cost allocation change should be documented on the personnel action form. 4. Corrective Action(s) Management will offer training on the completion of time and effort reports as well as work with Human Resources to ensure all payroll allocations are actually reflected on hiring documents. Description of Corrective Actions To address this finding and prevent recurrence, the University will strengthen procedures to ensure payroll allocations are supported by approved personnel records and reconciled to certified time and effort documentation. These procedures and reporting controls will be routinely evaluated and reinforced through staff training and management oversight to support sustained compliance and accurate federal reporting. 5. Risk Mitigation (Required - Even if Disagreeing) The University institution recognizes the importance of accurate documentation to support payroll allocations. Accordingly, the corrective actions described above are designed to ensure adequate training and review to ensure compliance and accurate reporting. 6. Responsible Party • Office/Department: Title III Office • Title of Responsible Official: Interim Title III Director • Name (optional): ____________ _ 7. Implementation Timeline • Corrective action implemented: D Yes ~ No • If not fully implemented, expected completion date: December 31, 2026 8. Status of Corrective Action (For Prior-Year or Repeat Findings) D Fully implemented D Partially implemented D Not yet implemented Evidence of Implementation In progress, evidence is not yet available. 9. Monitoring and Sustainability The University will monitor compliance through ongoing supervisory review of payroll allocations and time and effort reports. Review procedures will be routinely evaluated and reinforced through staff training and management oversight to support sustained compliance and accurate federal reporting.

View Audit 414825

Finding 1240163 (2025-003)

Material Weakness 2025

Mid-Atlantic Clean Hydrogen Hub, Inc.

PA

Allowable Costs / Cost Principles Subrecipient Monitoring Cash Management

Contact Person: Manny Citron, Chief Operating Officer Recommendation: MACH2 should review and update its internal control policies and procedures to ensure transactions are consistenly processed, approvals are clearly documented, and indiviudals responsible for the recorded of transactions are aware...

Contact Person: Manny Citron, Chief Operating Officer Recommendation: MACH2 should review and update its internal control policies and procedures to ensure transactions are consistenly processed, approvals are clearly documented, and indiviudals responsible for the recorded of transactions are aware of their responsibilities. Action: MACH2 will continue to strengthen and refine its internal control policies and procedures thorughout 2026, with a focus on improving the consistency of processing transactions, documenting payment approvals, and providing clear roles and responsibilities for individuals involved in the recording of financial transactions. Date of Completion: December 31, 2026

View Audit 414731

Finding 1240162 (2025-001)

Material Weakness 2025

Jewish Home Lifecare, Manhattan

NY

Allowable Costs / Cost Principles Reporting § 200.430

The findings from the December 31, 2025, schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the number assigned in the schedule. FINDINGS – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Finding 2025-001 – Allowable Costs/Cost Principles – U.S. De...

The findings from the December 31, 2025, schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the number assigned in the schedule. FINDINGS – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Finding 2025-001 – Allowable Costs/Cost Principles – U.S. Department of Labor (Assistance Listing Number: WIOA Cluster - 17.258, 17.259, 17.278) Passed through New York City Department of Youth and Community Development (Contract# 9060060), Workforce Development Corporation (Contract# 2025WDC005) – (Material Weakness) Material Weakness Recommendation We recommend that management implement policies, controls, and procedures to ensure that time and effort is recorded based on actual effort and approval by appropriate individuals is documented at least monthly to comply with applicable cost principles. Action Taken The New Jewish Home has implemented policies and procedures to ensure that employee time and effort charged to federally funded and other restricted programs is supported by contemporaneous documentation reflecting the actual effort performed. Employee time is recorded through the organization’s established timekeeping process and is reviewed and approved by the employee’s immediate supervisor on a payroll-period basis. This control is performed every pay period and therefore occurs more frequently than the minimum monthly review and approval standard referenced in the finding. Supervisory approval is intended to provide reasonable assurance that recorded time and effort is accurate, supported, and consistent with the employee’s actual work performed and the applicable funding requirements. Management will continue to monitor compliance with these procedures and will reinforce the requirement that time and effort records be accurately maintained and appropriately approved in accordance with organizational policies and applicable federal cost principles. The New Jewish Home will also retain the applicable timekeeping and approval documentation as evidence of the control’s operation. Completion Date: October 5, 2026

View Audit 414730

Finding 1240152 (2025-003)

Material Weakness 2025

Eastern Montana Community Mental Health Center

MT

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Reporting

Finding 2025-003: Internal Controls Over Expenditures, Financial Reporting, and Program Income Corrective Action Management agrees with the recommendation. The Center will strengthen compliance monitoring procedures by requiring documented evidence of review for expenditures, payroll, federal financ...

Finding 2025-003: Internal Controls Over Expenditures, Financial Reporting, and Program Income Corrective Action Management agrees with the recommendation. The Center will strengthen compliance monitoring procedures by requiring documented evidence of review for expenditures, payroll, federal financial reports, and other compliance activities. Written procedures will be developed to define review responsibilities and documentation requirements. The Center will establish a formal process to track, reconcile, and monitor program income and will provide training to personnel involved in federal award administration. Periodic internal compliance reviews will be performed to verify controls are functioning effectively. Implementation Timeline Policies and review procedures to be implemented during fiscal year 2026 with quarterly monitoring thereafter. Responsible Parties Chief Financial Officer, Compliance Officer, and Program Management.

View Audit 414720

Finding 1240127 (2025-008)

Material Weakness 2025

Alaska Pacific University

AK

Allowable Costs / Cost Principles § 200.303 § 200.403

Finding 2025-08 Allowable Costs/Cost Principles: Insufficient Documentation of Expenditure Review and Approval – Significant Deficiency in Internal Control Over Compliance; Planned Corrective Action Plan: APU will strengthen documentation requirements for credit cards and other nonpayroll expenditur...

Finding 2025-08 Allowable Costs/Cost Principles: Insufficient Documentation of Expenditure Review and Approval – Significant Deficiency in Internal Control Over Compliance; Planned Corrective Action Plan: APU will strengthen documentation requirements for credit cards and other nonpayroll expenditures charged to federal awards. Required approvals and supporting documentation will be obtained and retained before costs are charged to the applicable federal award. Finance will periodically review federal credit card transactions for compliance with approval and documentation requirements.; Anticipated Completion Date: July 1, 2027

View Audit 414713

Finding 1240126 (2025-007)

Material Weakness 2025

Alaska Pacific University

AK

Allowable Costs / Cost Principles § 200.414

Finding 2025-07 Allowable Costs/Cost Principles: Indirect Costs Charged in Excess of Approved Rate – Noncompliance and Significant Deficiency in Internal Control Over Compliance; Planned Corrective Action Plan: APU corrected the identified indirect cost overcharges. Going forward, grant setup docume...

Finding 2025-07 Allowable Costs/Cost Principles: Indirect Costs Charged in Excess of Approved Rate – Noncompliance and Significant Deficiency in Internal Control Over Compliance; Planned Corrective Action Plan: APU corrected the identified indirect cost overcharges. Going forward, grant setup documentation will identify the indirect cost rate authorized by each award, and Finance will review the applicable award terms before establishing or changing the rate used to calculate indirect costs. Periodic review of indirect cost calculations will be performed to verify that amounts charged agree with award requirements.; Anticipated Completion Date: July 1, 2027

View Audit 414713

Finding 1240092 (2025-004)

Material Weakness 2025

Cornerstone Rescue Mission

SD

Allowable Costs / Cost Principles § 200.303 § 200.430

Federal Agency Name: Department of Veterans Affairs Assistance Listing Number: 64.003 Program Name: VA Supportive Services for Veteran Families Program Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Finding Summary: In our sample of expenditures selected ...

Federal Agency Name: Department of Veterans Affairs Assistance Listing Number: 64.003 Program Name: VA Supportive Services for Veteran Families Program Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Finding Summary: In our sample of expenditures selected for testing, we noted the following items: a) Calculation errors for payroll expenses allocated to the grant based upon review of supporting timesheets, payroll documentation and management’s true-up calculations to allocate actual costs rather than budgeted costs (5 instances). b) Identification of benefits not being allocated in a similar manner as salaries and wages (1 employee impacted). c) Grant was overcharged as it relates to a travel reimbursement (1 instance). Corrective Action Plan: Management staff will conduct a secondary review of all payroll and travel related allocations to ensure accuracy. Responsible Individuals: Teena Conrad, SSVF Program Manager, Lysa Allison, Executive Director, and Christina Thoelke, Business Manager Anticipated Completion Date: September 2026

View Audit 414712

Finding 1240070 (2025-003)

Material Weakness 2025

City of Desert Hot Springs

CA

Allowable Costs / Cost Principles § 200.403

Finding 2025-003 Allowable Cost/Cost Principles and Cash Management – Compliance and Internal control over Allowable Costs/Cost Principles and Cash Management The City is implementing enhanced grant management procedures and review of allowable costs. Grant tracking will be improved with the impleme...

Finding 2025-003 Allowable Cost/Cost Principles and Cash Management – Compliance and Internal control over Allowable Costs/Cost Principles and Cash Management The City is implementing enhanced grant management procedures and review of allowable costs. Grant tracking will be improved with the implementation of the new financial software with the grant management module. The SEFA will be reviewed by the Administrative Services Director and the Finance Manager. The City has set up monthly meetings between the Finance Department and the Public Works Department to discuss and review capital improvement projects, grant funding, grant expenditures and allowable costs, and other funding requirements for those projects. Responsible Persons: Administrative Services Director, Finance Manager, Public Works Director Expected Implementation Date: July 1, 2025, though implementation of new finance software at July 1, 2027.

View Audit 414682

Finding 1240060 (2025-010)

Material Weakness 2025

COUNTY OF MCCURTAIN

OK

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.303

The current Board of County Commissioners acknowledges the finding. The Board is committed to strengthening written procedures related io federal grant administration, including allowable costs, procurement requirements, reporting, and compliance monitoring. Additional review processes will continue...

The current Board of County Commissioners acknowledges the finding. The Board is committed to strengthening written procedures related io federal grant administration, including allowable costs, procurement requirements, reporting, and compliance monitoring. Additional review processes will continue to be implemented to improve oversight and documentation.

View Audit 414666

Finding 1240059 (2025-008)

Material Weakness 2025

COUNTY OF MCCURTAIN

OK

Procurement, Suspension & Debarment Internal Control / Segregation of Duties Subrecipient Monitoring

The current Board of County Commissioners acknowledges the finding. While portions of this finding relate to prior fiscal years, the current Board is committed to strengthening county-wide internal controls over federal programs. The Board has reviewed the audit recommendations and will continue imp...

The current Board of County Commissioners acknowledges the finding. While portions of this finding relate to prior fiscal years, the current Board is committed to strengthening county-wide internal controls over federal programs. The Board has reviewed the audit recommendations and will continue implementing procedures addressing risk assessment, communication, monitoring, and compliance oversight for federal grants.

View Audit 414666

Finding 1240058 (2025-006)

Material Weakness 2025

COUNTY OF MCCURTAIN

OK

Procurement, Suspension & Debarment Reporting Allowable Costs / Cost Principles § 200.303 § 200.502 § 200.508 § 200.510

The current Board of County Commissioners acknowledges the finding. The Board is committed to improving the identification, tracking, and reporting of federal awards. County officials will continue working with auditors and department heads to strengthen reconciliation and review procedures and ensu...

The current Board of County Commissioners acknowledges the finding. The Board is committed to improving the identification, tracking, and reporting of federal awards. County officials will continue working with auditors and department heads to strengthen reconciliation and review procedures and ensure federal activity is accurately reported on the Schedule of Expenditures of Federal Awards.

View Audit 414666

Finding 1240002 (2025-001)

Material Weakness 2025

Traffick911

TX

Allowable Costs / Cost Principles Cash Management Material Weakness

Corrective Action: Management determined that a breakdown in the manual invoice verification workflow allowed duplicate health insurance transactions to be processed and submitted for reimbursement. Upon discovering the duplicate entries in May 2026, management conducted a comprehensive review of el...

Corrective Action: Management determined that a breakdown in the manual invoice verification workflow allowed duplicate health insurance transactions to be processed and submitted for reimbursement. Upon discovering the duplicate entries in May 2026, management conducted a comprehensive review of eligible expenditures incurred during the applicable grant periods. The review identified $102,713 in eligible program costs that had been incurred but had not previously been billed. This included $100,462 applicable to closed grant 3245806, $1,666 applicable to open grant 3245807, and $585 applicable to open grant 5325201. After accounting for these eligible, previously unbilled expenditures, the remaining variance was $45,643. The $45,643 remaining variance, associated with October, November, and December 2025 billings, was deferred and applied to allowable billings in June 2026. Traffick911 has implemented corrective measures to strengthen financial controls and prevent recurrence. The organization has hired new finance staff, contracted with a PEO to manage payroll and benefits, and instituted a monthly reconciliation of medical insurance expenses against payroll reports to ensure ongoing accuracy. Name of Contact Person: Danielle Upton, Chief Administrative Officer, (214) 685-5850, danielle@traffick911.com Projected Completion Date: Initial billing corrections were successfully finalized in June 2026. Additional oversight and internal controls regarding medical insurance expenses are on track for full implementation by December 31, 2026.

View Audit 414625

Finding 1239963 (2025-227)

Material Weakness 2025

State of Idaho

ID

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303

Finding Number 2025-227: The Division does not have documented control procedures in place to ensure compliance with period of performance requirements for the Rehabilitation Services-Vocational Rehabilitation Grants to States. Federal Program: 84.126 - Rehabilitation Services - Vocational Rehabilit...

Finding Number 2025-227: The Division does not have documented control procedures in place to ensure compliance with period of performance requirements for the Rehabilitation Services-Vocational Rehabilitation Grants to States. Federal Program: 84.126 - Rehabilitation Services - Vocational Rehabilitation Grants to States Related to Prior Finding: N/A Agency’s view: The agency agrees with this finding. IDVR acknowledges that the controls during the audit period were insufficient to ensure expenditures were consistently allocated to the correct federal award period. Corrective Action: Since November 2025, IDVR has implemented a comprehensive period-of-performance review process designed to ensure compliance with federal grant requirements. As part of this process, the Strategic Leadership Team reviews and determines when obligations should transition between federal fiscal year awards. Based on this direction, IDVR Data Manager updates system configurations and budget parameters within the AWARE case management system to ensure expenditures are assigned to the correct federal award. In addition, IDVR implemented a testing process in which the Data Manager and Program Analyst verify that expenditures are coding appropriately following budget updates. IDVR has also incorporated period-of-performance reviews into its quality assurance and compliance review process for case service expenditures. Invoice batches are reviewed before liquidation, or reimbursement requests are submitted to ensure expenditures are allocated to the proper grant award. These reviews are conducted by Quality Assurance and Compliance Analysts, Financial Specialists, the Financial Officer, and, when appropriate, Agency leadership, including the Deputy Administrator and Administrator. Through these layered review processes, IDVR has established documented internal controls designed to ensure compliance with period-of-performance requirements and has successfully utilized these controls since implementation as evidenced by approved RSA reimbursements of expenditures based upon both period of performance and allowability reviews completed by RSA on all expenditures reimbursed as required under route payment that IDVR has been engaged in with RSA since October 2024. IDVR is in the process of obtaining approval from RSA within drafted Grant’s Management Chapters for the policies, procedures and internal controls related to assurances of proper grant assignment based upon period of performance. Once approval is provided, IDVR will finalize, implement, and train on the approved policies, procedures, and internal controls that align with processes already in practice as of November 2025. Anticipated Corrective Action Date: January 30, 2027 Responsible for Corrective Action: Heidi Smith, Financial Officer Heidi.Smith@vr.idaho.gov (208) 287-6457

View Audit 414614

Finding 1239960 (2025-224)

Material Weakness 2025

State of Idaho

ID

Reporting Procurement, Suspension & Debarment Allowable Costs / Cost Principles § 200.303 § 200.510

Finding Number 2025-224: The Department overstated federal grant expenditures on the Schedule of Expenditures of Federal Awards (SEFA) closing package. Federal Program: 21.027 – Coronavirus State and Local Fiscal Recovery Fund Related to Prior Finding: N/A Agency’s view: The department agrees with t...

Finding Number 2025-224: The Department overstated federal grant expenditures on the Schedule of Expenditures of Federal Awards (SEFA) closing package. Federal Program: 21.027 – Coronavirus State and Local Fiscal Recovery Fund Related to Prior Finding: N/A Agency’s view: The department agrees with the finding and asserts that it was a one-of-a-kind error in the timing of recording of one expenditure transaction. The error went undetected for a few months during the very confusing and difficult Luma transition year. When staff detected the error they believed the expenditure was still required to be reported on a SEFA and the only option available was to report it in FY 2025. Corrective Action: Staff have already completely familiarized themselves with the guidance on “New Requirement for Wire Payment Requests” issued by SCO on October 6, 2025. We are confident that our understanding of these new procedures will prevent any future occurrence. Anticipated Corrective Action Date: September 28, 2026 Responsible for Corrective Action: Steve Martin, Financial Officer Steve.Martin@idpr.idaho.gov (208) 869-4120

View Audit 414614

Finding 1239958 (2025-222)

Material Weakness 2025

State of Idaho

ID

Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303

Finding Number 2025-222: The Division did not ensure Homeland Security Grant funds were obligated to subrecipients within the required 45 days of receipt of the award. Federal Program: 97.067 - Homeland Security Grant Program Related to Prior Finding: N/A Agency’s view: The agency partially agrees w...

Finding Number 2025-222: The Division did not ensure Homeland Security Grant funds were obligated to subrecipients within the required 45 days of receipt of the award. Federal Program: 97.067 - Homeland Security Grant Program Related to Prior Finding: N/A Agency’s view: The agency partially agrees with the issue identified. Corrective Action: Condition - of those sampled, 2 subaward agreements were not issued within the 45- day requirement. IOEM does question whether the Operation Stone Garden Grant Program (OPSG) is subject to the 45-day requirement as Customs and Border Patrol approves the participating jurisdiction’s grant projects. Based on State Administration Agencies request for clarification, Idaho’s FY 25 HSGP Award Amendment states the following: “As required by 6 U.S.C. § 605(c) for SHSP and 6 U.S.C. § 604(d) for UASI, the recipient must make available to local and tribal governments not less than 80 percent of the SHSP and UASI funds awarded under this award, within 45 days. This requirement applies to SHSP and UASI funds only and does not apply to OPSG funds” (bolded for emphasis). The 2025 OMB Compliance Supplement Special Tests for HSGP indicate: “States… must obligate at least 80 percent of funds awarded to them under SHSP and UASI to local or Tribal governments within 45 calendar days of receipt of the funds.” It is of note that OPSG is not included in this Special Test. One of the two grant agreements issued over 45 days is associated with OPSG. Resolution - IOEM’s Grants Branch Chief accepts grant awards on IOEM’s behalf. The Grants Branch Chief will notify the Finance Section Chief and the Grant Analysts via email the date the award is accepted, the date 45 days from award acceptance and a deadline within the 45 days subaward obligation documents are expected to be issued. The Grants Branch Chief will review subaward obligations to assure they are issued within 45 days of award acceptance. Anticipated Corrective Action Date: August 31, 2026. Responsible for Corrective Action: Matt McCarter, IOEM Grants Branch Chief mmccarter@imd.idaho.gov (208) 258-6517

View Audit 414614

Finding 1239957 (2025-221)

Material Weakness 2025

State of Idaho

ID

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting § 200.303

Finding Number 2025-221: The Division did not complete required Federal Funding Accountability and Transparency Act (FFATA) reports for the Homeland Security Grant Program. Federal Program: 97.067 - Homeland Security Grant Program Related to Prior Finding: N/A Agency’s view: The agency agrees with t...

Finding Number 2025-221: The Division did not complete required Federal Funding Accountability and Transparency Act (FFATA) reports for the Homeland Security Grant Program. Federal Program: 97.067 - Homeland Security Grant Program Related to Prior Finding: N/A Agency’s view: The agency agrees with the issue identified. Corrective Action: Condition - subawards of $30,000 or more are to be reported to the FFATA Subaward Reporting System (FSRS). All FFATA reports are due by the end of the month following the month the subawards are obligated. While IOEM utilizes a tracker for FFATA reporting, some reports were late or missing. Federal government shutdowns, the change in FFATA reporting portal (FSRS was retired on March 8, 2025, and all FFATA reporting must be submitted in SAM.GOV), staffing turnover and delayed grant reimbursements resulted FFATA reporting delays. Resolution - The IOEM Finance Section (group responsible for FFATA reporting) is now fully staffed, and a Standard Operating Procedure / Instruction Guide has been developed to assist existing and new staff in adhering to FFATA reporting requirements in the new SAM.GOV interface. This will ensure consistency and thoroughness in FFATA reporting. Anticipated Corrective Action Date: August 31, 2026. Responsible for Corrective Action: Kari Harneck, IOEM Finance Section Chief kharneck@imd.idaho.gov (208) 258-6511

View Audit 414614

Finding 1239956 (2025-220)

Material Weakness 2025

State of Idaho

ID

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

Finding Number 2025-220: Payroll adjustments lacked sufficient internal controls. Federal Programs: 93.777 - State Survey and Certification of Health Care Providers and Suppliers (Title XVIII) Medicare 93.778 - Grants to States for Medicaid 93.958 - Block Grants for Community Mental Health Services ...

Finding Number 2025-220: Payroll adjustments lacked sufficient internal controls. Federal Programs: 93.777 - State Survey and Certification of Health Care Providers and Suppliers (Title XVIII) Medicare 93.778 - Grants to States for Medicaid 93.958 - Block Grants for Community Mental Health Services Related to Prior Finding: 2024-234 Agency’s view: The agency agrees with the finding. Corrective Action: Updated ISD interface training and procedure documents. The ISD interface protocol has been revised to specifically address the required approval process for corrections. Updated training educates Financial Specialists on the proper procedures and reinforces the requirement to obtain documented approval via email before any corrections are interfaced. The Training documents also stress the importance of attaching the documents to the system to maintain proper records of such approval. Refresher training was also provided for all analysts. Expected outcome: These actions establish consistent, documented approval control for ISD corrections, and ensure that email approval evidence is retained with each transaction. Anticipated Corrective Action Date: June 30, 2026 Responsible for Corrective Action: Brooke Jenkins, Financial Specialist, Principal Brooke.Jenkins1@dhw.idaho.gov (208) 334-5500

View Audit 414614

Finding 1239943 (2025-216)

Material Weakness 2025

State of Idaho

ID

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

Finding Number 2025-216: The Department understated federal expenditures on the Children's Health Insurance Program (CHIP) CMS-21 Base Reports by $1,088,209. Federal Program: 93.767 - Children's Health Insurance Program Related to Prior Finding: N/A Agency’s view: The agency agrees with the finding....

Finding Number 2025-216: The Department understated federal expenditures on the Children's Health Insurance Program (CHIP) CMS-21 Base Reports by $1,088,209. Federal Program: 93.767 - Children's Health Insurance Program Related to Prior Finding: N/A Agency’s view: The agency agrees with the finding. Corrective Action: During the FFY 2026, Quarter 1 CMS-21 reporting cycle, the Medicaid Budget Team identified underreported indirect expenditures for State Fiscal Years 2024 and 2025. The discrepancies were traced to initial reporting issues following the LUMA system go-live in July 2023, which resulted in indirect expenditures not being incorporated into the CMS-21 reporting process. To address the underreporting, the Medicaid Budget Team entered prior-period adjustments on CMS 21P forms to claim the eligible expenditures for the affected eight quarters, consistent with applicable CMS reporting requirements. To strengthen internal controls and prevent recurrence, the Medicaid Budget Team developed a new report that automatically incorporates indirect expenditures into the CMS-21 workpapers. This automated process reduces the risk of indirect expenditures being omitted and provides additional control to improve the completeness and accuracy of future CMS-21 reporting. Included is the CMS 21 Summary Sheet which shows the consolidation of the prior period adjustments make to claim all identified expenditures that had been omitted (line 2). Anticipated Corrective Action Date: October 1, 2025 Responsible for Corrective Action: Erica Williams, Financial Specialist Principal Erica.Williams@dhw.idaho.gov (208) 334-5500

View Audit 414614

Finding 1239938 (2025-212)

Material Weakness 2025

State of Idaho

ID

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

Finding Number 2025-212: A Social Services Block Grant (SSBG) Post-Expenditure Report did not include a review and approval prior to submission. Federal Program: 93.667 - Social Services Block Grant Related to Prior Finding: N/A Agency’s view: The agency agrees with the finding. Corrective Action: T...

Finding Number 2025-212: A Social Services Block Grant (SSBG) Post-Expenditure Report did not include a review and approval prior to submission. Federal Program: 93.667 - Social Services Block Grant Related to Prior Finding: N/A Agency’s view: The agency agrees with the finding. Corrective Action: The SSBG Post-Expenditure Report has been added to the Department’s Grant Log with the applicable due date and will follow the Department’s established federal financial reporting review process. Prior to submission, the Grant Reporting Team will prepare the report and supporting workpapers, these include reconciliation of reported expenditures to the underlying financial records and documentation supporting the information reported. The report will be routed to the appropriate supervisor and/or Financial Manager for review and approval before submission. The Report Routing Cover Sheet will document the preparer, reviewer, date of review, approval, and any corrections or followup required. The Cash and Grants Supervisor will monitor the Grant Log to ensure the Post-Expenditure Report is routed, reviewed, approved, and submitted by the required due date. Completed Report Routing Cover Sheets and supporting documentation will be retained with the grant records as evidence that the required review and approval occurred prior to submission. This process will provide a documented review and approval control over the SSBG Post-Expenditure Report and ensure that management has evidence that the report was reviewed for accuracy and completeness before it is submitted. Anticipated Corrective Action Date: March 31, 2027 Responsible for Corrective Action: Randena P. Darpli, CPA, CGFM, Financial Manager dena.darpli@dhw.idaho.gov (208) 334-4909

View Audit 414614

Finding 1239937 (2025-211)

Material Weakness 2025

State of Idaho

ID

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties § 200.303

Finding Number 2025-211: Federal Funding Accountability and Transparency Act (FFATA) reports were not reviewed prior to submission and were not submitted timely. Federal Program: 93.568 - Low-Income Home Energy Assistance Related to Prior Finding: N/A Agency’s view: The agency agrees with the findin...

Finding Number 2025-211: Federal Funding Accountability and Transparency Act (FFATA) reports were not reviewed prior to submission and were not submitted timely. Federal Program: 93.568 - Low-Income Home Energy Assistance Related to Prior Finding: N/A Agency’s view: The agency agrees with the finding. Corrective Action: The FFATA Data Worksheet, developed by DHW, includes a list of all obligations of federal funds to subgrantees of $30,000 or more that occurred during the prior month. The due date will be added to the FFATA Data Worksheet to draw particular attention to that. The FFATA Data Worksheet is prepared by the Grant Reporting Team Lead, Financial Specialist, Senior, and the Cash and Grants Supervisor, Financial Specialist, Principal, will be responsible for reviewing it to ensure all applicable subgrants are included for the month. Once that review has occurred and any resulting edits have been made, the FFATA Data Worksheet will be returned to the Grant Reporting Team Lead to enter the data in sam.gov. As sam.gov does not offer a “save” function, there is not a presubmission review. The previously discussed review by the Cash and Grants Supervisor is aimed at preventing any noncompliance related to omission of reportable obligations. A final review aimed at detecting and timely correcting any material misstatements will take place with the Technical Records Specialist completing a data entry review to ensure the data entered into sam.gov agrees with the FFATA Data Worksheet. A FFATA Report Routing Sheet will also be developed to document the above reviews and approvals. The FFATA Report Routing Sheet will also include the due date as another point of monitoring for timely submission. Completed routing sheets and supporting documentation will be retained in the grant file as evidence that the required review, submission, and verification procedures are performed. Anticipated Corrective Action Date: January 31, 2027 Responsible for Corrective Action: Randena P. Darpli, CPA, CGFM, Financial Manager dena.darpli@dhw.idaho.gov (208) 334-4909

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Finding 1239935 (2025-210)

Material Weakness 2025

State of Idaho

ID

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

Finding Number 2025-210: The Department did not provide documented support to verify the accuracy of a Low Income Energy Assistance Program (LIHEAP) performance report. Federal Program: 93.568 - Low-Income Home Energy Assistance Related to Prior Finding: 2024-230 Agency’s view: The agency agrees wit...

Finding Number 2025-210: The Department did not provide documented support to verify the accuracy of a Low Income Energy Assistance Program (LIHEAP) performance report. Federal Program: 93.568 - Low-Income Home Energy Assistance Related to Prior Finding: 2024-230 Agency’s view: The agency agrees with the finding. Corrective Action: The Department has updated a process document that will strengthen our internal controls regarding the LIHEAP performance report. The Department will compile and retain sufficient documentation to support the information included in the LIHEAP Performance report. Anticipated Corrective Action Date: The process document was updated on September 9, 2026, and will be utilized when completing the upcoming LIHEAP performance report. Responsible for Corrective Action: Lisa Johnson, Program Manager Lisa.Johnson@dhw.idaho.gov (208) 334-5739

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Finding 1239933 (2025-209)

Material Weakness 2025

State of Idaho

ID

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

Finding Number 2025-209: The Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) project and expenditure reports (P&E) contained misstatements. Federal Program: 21.027 - Coronavirus State and Local Fiscal Recovery Fund Related to Prior Finding: N/A Agency’s view: The Division agrees with the ...

Finding Number 2025-209: The Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) project and expenditure reports (P&E) contained misstatements. Federal Program: 21.027 - Coronavirus State and Local Fiscal Recovery Fund Related to Prior Finding: N/A Agency’s view: The Division agrees with the finding and recognizes that additional controls are needed to ensure CSLFRF Project and Expenditure reports are accurate, fully supported, and more thoroughly reconciled to the State’s accounting system before submission. The Division notes that the identified errors were below the program’s materiality threshold and did not result in a finding of material noncompliance or a material weakness. The Division also corrects reporting errors when they are identified. However, Treasury’s published FAQ and written correspondence (attached) confirm that submitted reports cannot be reopened after the reporting deadline. Because P&E reports are cumulative, any necessary corrections must be reflected in a subsequent reporting period. This required correction process contributed to some of the differences identified during the audit because adjustments related to prior periods were necessarily recorded in later reports. Accordingly, the timing of these adjustments was consistent with Treasury’s prescribed reporting process. Corrective Action: The Division will implement the following corrective actions for all remaining CSLFRF P&E reports: 1. Required agency support. Each administering agency will submit a completed reporting template for every active project. If no activity occurred, the agency must provide documented confirmation of no change. Missing templates will be tracked and escalated before the report is finalized. 2. Reconciliation to Luma. Current and cumulative expenditures and obligations will be reconciled by administering agency to Lumat. All differences will be documented and resolved before submission. 3. Independent detailed review. The review will cover source templates, Luma reconciliations, current and cumulative amounts, prior-period balances, adjustments, and evidence supporting projects reported with no change. 4. Procedures, training, and retention. The Division will document the reporting process, provide training and cross-training to staff involved in CSLFRF reporting, and retain the templates, reconciliations, agency confirmations, review checklist, and final submission support in a centralized reporting file. 5. Correction of prior reporting errors. The Division will correct the identified errors through Treasury's prescribed process. In written email correspondence to Justin Collins, the U.S. Department of the Treasury confirmed: 'Prior submitted reports are not eligible to be reopened for revisions since the reporting deadline has passed. The SLFRF Project and Expenditure Reports are cumulative reports, and any adjustments needed will need to be made in the next reporting period.' Accordingly, the Division will document and include the necessary adjustments in the next available cumulative P&E report and retain Treasury's email as support for the correction method. Anticipated Corrective Action Date: January 31, 2027. The revised controls will be applied before submission of the next required quarterly CSLFRF P&E report. Responsible for Corrective Action: Justin Collins, Deputy Administrator | State Financial Officer Justin.collins@dfm.idaho.gov (208) 854-3063

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