Corrective Action Plans

Finding 1225978 (2025-002)

Material Weakness 2025

IL

Allowable Costs / Cost Principles Questioned Costs § 200.303

Finding Number: 2025-001 & 2025-002 Name of Responsible Party: JaShawn Hill, Executive Director Corrective Action: Management acknowledges and agrees with the finding. The issue resulted in a variety of issues: 1) invoices for recurring transactions set up on automatic payment were not downloaded an...

Finding Number: 2025-001 & 2025-002 Name of Responsible Party: JaShawn Hill, Executive Director Corrective Action: Management acknowledges and agrees with the finding. The issue resulted in a variety of issues: 1) invoices for recurring transactions set up on automatic payment were not downloaded and approved by the appropriate party, resulting in a lack of adequate documentation, 2) a former employee was granted access to make ACH payments directly from the organization’s bank account, allowing payments to be made without proper oversight or approval, and 3) access to the organization’s Amazon account was limited to one employee, allowing inappropriate purchases to be made without proper oversight or approval. To ensure that proper processes and documentation is followed going forward, management will: 1) provide adequate training to the individual tasked with collecting invoices and approval for all transactions, including recurring transactions, and will perform a periodic review of various transactions to ensure approvals and documentation is obtained; 2) no longer allow any employee to make ACH payments directly from the organization’s bank account, and instead will implement a bill payment software that ensures that all ACH payments must be approved by an appropriate party, other than the individual initiating payment, before payment can be made; and 3) ensure that multiple parties have access to the organization’s Amazon account, and that the transactions and receipts are reviewed and approved as dictated by the organization’s existing policies and procedures (and are subject to the periodic review noted in item 1 above). Anticipated Completion Date: July 31, 2026

View Audit 408618

Finding 1225872 (2025-002)

Material Weakness 2025

Argus Community, INC

NY

Allowable Costs / Cost Principles § 200.430

Corrective Action Planned: In July 2023, the Organization implemented ADP Work Force Now to systematically capture hours worked, the supervisor's approval and audit trail to reflect the work performed. In May 2026, the Organization hired a subcontractor, Dapt to synchronize the employee hours worked...

Corrective Action Planned: In July 2023, the Organization implemented ADP Work Force Now to systematically capture hours worked, the supervisor's approval and audit trail to reflect the work performed. In May 2026, the Organization hired a subcontractor, Dapt to synchronize the employee hours worked on their time sheets and allocated into the cost centers/programs they worked on. The new timesheet will also reflect the employee and supervisor’s approval, as completed in ADP. Testing begins with the months of May and June 2026. Name(s) of Contact Person(s) Responsible for Corrective Action: Betsey Knapp, Director of Budgets and Contracts; Alvin Sinckler, Chief Financial Officer Anticipated Completion Date: June 30, 2026.

View Audit 408570

Finding 1225745 (2025-002)

Material Weakness 2025

City of East Chicago

IN

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Material Weakness § 200.1 § 200.303

CORRECTIVE ACTION PLAN FINDING 2025-002 Finding Subject: COVID-19- Coronavirus State and Local Fiscal Recovery Funds Contact Person Responsible for Corrective Action: Valeriano F. Gomez Contact Phone Number and Email Address: 219-391-8220 Views of Responsible Officials: Option 1: “We concur with the...

CORRECTIVE ACTION PLAN FINDING 2025-002 Finding Subject: COVID-19- Coronavirus State and Local Fiscal Recovery Funds Contact Person Responsible for Corrective Action: Valeriano F. Gomez Contact Phone Number and Email Address: 219-391-8220 Views of Responsible Officials: Option 1: “We concur with the finding.” Description of Corrective Action Plan: Previous corrective action read as follows: To ensure proper implementation of the policies and procedures in place related to SLFRF reporting, in future, no submittal of reports will be approved without the City Controller and a Senior Staff Accountant reviewing and approving the P & E reports…… issue arose when City Departments responsive for entering data in P & E reports and Staff Accountant documentation differed , adding to issue both groups were not together in same room to assist each other with reporting . Corrective Action Plan: 1. All future SLFRF Quarterly reports shall require advance meetings before the data entering day; to ensure correct reporting. Meetings shall include all personnel reviewing and entering information (City department personnel and Controllers office personnel, to include two from the Controller’s Office; Controller, or Deputy City Controller and Senior City Accountant. 2. These Staff meeting shall address any differences in reporting documentation, and prepare for any editing and revising data to correct issues from previous P & E reporting, in next available report (Sec. V. Editing and Revising Data P & E Report User Guide) 3. No data shall be entered / submitted on entry day for future Quarterly P & E reports without Controller personnel present and having reviewed and confirmed data. Anticipated Completion Date: Controllers Office and City Departments involved in reporting are presently working to address and correct issues in past reporting, completion is anticipated when upcoming 2nd Quarterly Report for 2026 is opened and issues are addressed.

View Audit 408547

Finding 1225617 (2025-004)

Material Weakness 2025

White Bird Clinic

OR

Questioned Costs Allowable Costs / Cost Principles Material Weakness

2025-004 Reporting Corrective action planned: WBC Management agrees with this finding. WBC had to switch EHRs during 2023 and 2024, which required our Dental, Medical, and Behavioral Health programs to use their own separate EHR to alleviate critical functional and capacity deficiencies that were ca...

2025-004 Reporting Corrective action planned: WBC Management agrees with this finding. WBC had to switch EHRs during 2023 and 2024, which required our Dental, Medical, and Behavioral Health programs to use their own separate EHR to alleviate critical functional and capacity deficiencies that were caused by our previous EHR. This resulted in significantly more complexity when calculating our UDS numbers. The process involved combining all of our patient demographics and accounting for overlapping (duplicate encounters) by hand. This was made all the more difficult by name misspellings and other errors during data entry. Relating to our prior year finding, WBC had contracted with a third party to implement a custom population health tool to automate our UDS reporting. The contractor did not meet specified deliverable requirements, so reporting was again done manually, which resulted in the errors. White Bird Clinic has been working to evaluate population health tools to aggregate patient data to provide more accurate UDS and clinical quality reporting. In 2026, through the help of our HCCN, Health Efficient, we contracted with Relevant Health to implement their population health tool to streamline and accurately report our population health and our UDS reporting. The Relevant platform is in use by over 100 FQHCs across the country. This tool will aggregate patient data from each EHR, account for duplicates, and accurately report combined UDS demographics from all our systems. They are very experienced with UDS and UDS+ reporting, so the system is designed to seamlessly provide accurate and consistent UDS metrics and address duplicate clients from multiple EHRs. Anticipated completion date: 2026, July Contact person responsible for corrective action: Tyler Stewart, Director of IT

View Audit 408513

Finding 1225616 (2025-003)

Material Weakness 2025

White Bird Clinic

OR

Allowable Costs / Cost Principles Subrecipient Monitoring Material Weakness § 200.303 § 200.430

2025-003 Internal Control Over Payroll Charged to Federal Awards Corrective action planned: WBC Management agrees with this finding. With the onboarding of a new Director of Human Resources, best practices around payroll documentation have been implemented. This includes individual forms for all wag...

2025-003 Internal Control Over Payroll Charged to Federal Awards Corrective action planned: WBC Management agrees with this finding. With the onboarding of a new Director of Human Resources, best practices around payroll documentation have been implemented. This includes individual forms for all wage changes per employee. Approval is documented with Supervisors’ signatures on these forms. The wage form is used to update the payroll system and a final accuracy review is performed by the HR Director to verify the updated rated matches the approved change form. The approved wage forms are securely stored in the Human Resources files. Anticipated completion date: 2026, July Contact person responsible for corrective action: Jonathan Gunther, Director of Finance

View Audit 408513

Finding 1225606 (2025-003)

Material Weakness 2025

Madison County District School Board

FL

Questioned Costs Allowable Costs / Cost Principles

Planned Corrective Action: The District recognizes and understands the incorrect calculation of the Federal indirect cost rate applicable to the 2024-25 fiscal year and has prepared subsequent indirect rate calculations for the fiscal years 2025-26 and 2026-27 that included other expenditures (i.e. ...

Planned Corrective Action: The District recognizes and understands the incorrect calculation of the Federal indirect cost rate applicable to the 2024-25 fiscal year and has prepared subsequent indirect rate calculations for the fiscal years 2025-26 and 2026-27 that included other expenditures (i.e. charter school expenditure) that were incorrectly omitted in the rate for the 2024-25 fiscal year. Anticipated completion date: July 1, 2025 Responsible Contact Person: Walter Copeland, CFO

View Audit 408491

Finding 1225594 (2025-003)

Material Weakness 2025

Metcalfe County Fiscal Court

KY

Internal Control / Segregation of Duties Special Tests & Provisions Questioned Costs § 200.303

The Metcalfe County Fiscal Court will establish internal controls over the federal expenditure process when a third-party entity is involved to ensure all compliance and recording requirements are met. Although the Metcalfe County Fiscal Court was in compliance with federal requirements when tested ...

The Metcalfe County Fiscal Court will establish internal controls over the federal expenditure process when a third-party entity is involved to ensure all compliance and recording requirements are met. Although the Metcalfe County Fiscal Court was in compliance with federal requirements when tested by a single audit, having these procedures in place will ensure that all future federal expenditures will remain in compliance.

View Audit 408468

Finding 1225580 (2025-001)

Material Weakness 2025

Martha's Vineyard Regional High School District

MA

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

Time & Effort Documentation. Due to the timing of the retirement of the SPED Administrative Assistant who was responsible for documenting the time & effort of staff paid for from the SPED 240 Grant, the necessary paperwork/documentation was not collected as required. The Corrective Action Plan will ...

Time & Effort Documentation. Due to the timing of the retirement of the SPED Administrative Assistant who was responsible for documenting the time & effort of staff paid for from the SPED 240 Grant, the necessary paperwork/documentation was not collected as required. The Corrective Action Plan will consist of training the new SPED Administrative Assistant on this requirement, and to have multiple check-ins during the year with the Director of Support Services and the SPED Administrative Assistant on this requirement. Lastly, we are taking the additional step to add language into each annual payroll contract of staff funded from the SPED 240 Grant, that they are funded, and to what proportion, by that grant. This will be overseen by the School Business Administrator in concert with the Director of Support Services, and will be effective for the FY26 Single Audit cycle.

View Audit 408454

Finding 1225567 (2025-001)

Material Weakness 2025

Governor's Partnership to Protect Connecticut's Workforce, Inc.

CT

Allowable Costs / Cost Principles

The Partnership will implement a formal time and effort reporting process with in its current payroll platform to ensure payroll costs charged to federal awards are supported by after-the-fact records that accurately reflect work performed. This will include standardized timesheets or system-based t...

The Partnership will implement a formal time and effort reporting process with in its current payroll platform to ensure payroll costs charged to federal awards are supported by after-the-fact records that accurately reflect work performed. This will include standardized timesheets or system-based tracking, supervisory review and approval, and periodic reconciliations between payroll allocations and actual activity. Adjustments will be recorded timely to ensure costs are allowable, properly allocated, and supported in accordance with Uniform Guidance.

View Audit 408447

Finding 1225549 (2025-002)

Material Weakness 2025

Bang on A Can

NY

Allowable Costs / Cost Principles Cash Management Period of Performance § 200.300 § 200.400

Bang on a Can, Inc. will adopt written policies, procedures and standards of conduct as required by 2 CFR 200, Subparts D and E.

View Audit 408442

Finding 1225545 (2025-006)

Material Weakness 2025

Muskegon Heights Public School Academy System

MI

Allowable Costs / Cost Principles Questioned Costs

2025-006 - Documentation and Internal Controls over Disbursements (repeat finding) Auditor Description of Condition and Effect: Evidence of an independent review was not documented on our disbursements selected for testing. As a result of the condition, the Academy is exposed to an increased risk of...

2025-006 - Documentation and Internal Controls over Disbursements (repeat finding) Auditor Description of Condition and Effect: Evidence of an independent review was not documented on our disbursements selected for testing. As a result of the condition, the Academy is exposed to an increased risk of misappropriation, misstated financial statements, or noncompliance. The Academy is at increased risk of unallowable costs being charged to federal programs without being detected by its internal controls. Auditor Recommendation: We recommend that the Academy strengthen its accounts payable process by implementing a formal approval procedure to ensure all invoices are reviewed and authorized by personnel with direct knowledge of the underlying transaction prior to payment. This process should include the following elements: Designated Approvers: Identify specific individuals or roles responsible for reviewing and approving invoices for each department or type of transaction. Documented Approval: Require that each invoice include documented evidence of approval (e.g., signatures or electronic approval) before it is processed for payment. Segregation of Duties: Ensure that the approver is independent of those initiating or processing payments to maintain proper internal controls. Periodic Review: Conduct periodic reviews of accounts payable records to verify compliance with approval procedures and identify any unauthorized payments. Corrective Action: 1. Designate Official Approvers: We will identify specific staff members or roles who have direct knowledge of certain transactions to be the only ones authorized to approve those invoices. 2. Require Proof of Approval: We will implement a strict rule that no invoice is processed for payment unless it has clear, documented evidence of approval, such as a physical signature or a verified electronic sign-off. 3. Maintain Independence in Payments: We will ensure the person approving an invoice is not the individual processing the actual payment. 4. Perform Regular Spot Checks: I will conduct periodic reviews of our accounts payable records to make sure our approval procedures are being followed and to catch any unauthorized payments early. 5. Focus on Federal Compliance: We will meet monthly to monitor disbursements charged to federal programs to ensure all costs are allowable and properly documented, reducing our risk of noncompliance. Responsible Person: LaKisha Loudermill, Superintendent Anticipated Completion Date: June 30, 2026

View Audit 408425

Finding 1225517 (2025-001)

Material Weakness 2025

Garnet Valley School District

PA

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

The District will implement formal review procedures to verify compliance with maintenance of effort requirements during the budgeting process, including verification of required per-pupil thresholds prior to approval. Documentation of these compliance checks will be prepared, reviewed, and retained...

The District will implement formal review procedures to verify compliance with maintenance of effort requirements during the budgeting process, including verification of required per-pupil thresholds prior to approval. Documentation of these compliance checks will be prepared, reviewed, and retained as part of the budget workpapers. In addition, business office and program staff involved in the development of IDEA budgets will receive training on federal eligibility requirements to reduce the risk of recurrence.

View Audit 408397

Finding 1225502 (2025-002)

Material Weakness 2025

Lima City School District

OH

Allowable Costs / Cost Principles Questioned Costs Subrecipient Monitoring § 200.430 § 200.431

Lima City Schools will prepare and complete the time and effort certifications each school year. Procedures have been put in place to verify that all employees charging salaries and benefits to federal grants will have completed semi-annual certifications, signed and verified.

View Audit 408371

Finding 1225399 (2025-002)

Material Weakness 2025

H.O.P.E. HELPING OURSELVES PREVENT EMERGENCIES

AK

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

Criteria: The objective of the Assistance Listing 93.912 is to improve services for substance use disorder (SUD) and opioid use disorder (OUD) through prevention, treatment, and recovery services. Management is responsible for establishing and maintaining internal controls, including formal policies...

Criteria: The objective of the Assistance Listing 93.912 is to improve services for substance use disorder (SUD) and opioid use disorder (OUD) through prevention, treatment, and recovery services. Management is responsible for establishing and maintaining internal controls, including formal policies and procedures for the review and approval of journal entries, adjustments to expenditures, and account reconciliations, to ensure expenditures reported to granting agencies are complete, accurate, allowable, and properly supported. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Containment -Once we were made aware of this finding through the audit, we began thinking of the most efficient way to document the Board’s knowledge and approvals of journal entries, including adjustments to expenditures and account reconciliations. Root Cause -HOPE is currently revising all policies and procedures. This was HOPE’s first federal single audit, so once we heard of the finding we prioritized revisions of fiscal policies and procedures to address the finding. Action Taken- The first board meeting after learning of this finding will be held on July 27th, 2026. Beginning with that meeting, the Board’s approval of the statement of activity detail, consisting of all charges and journal entries entered into HOPE’s accounting system since the date of the last Board meeting, will be approved via motion and seconded and noted as such in the Board meeting minutes. Most journal entries made during the month are currently entered into the system by HOPE’s CPA. The remaining journal entries are entered by HOPE’s Executive Director. To ensure that the Board is aware of the adjustments made in the system, all journal entries made since the last Board meeting will be approved via a motion and a second as a separate agenda item to ensure that the Board is reviewing these items particularly. All approvals will be noted in the Board meeting minutes. The list of journal entries viewed during the meeting will be initialed by a Board member and kept on file as documentation of internal controls.

View Audit 408352

Finding 1225398 (2025-001)

Material Weakness 2025

H.O.P.E. HELPING OURSELVES PREVENT EMERGENCIES

AK

Procurement, Suspension & Debarment Allowable Costs / Cost Principles

Criteria: The objective of Assistance Listing 93.912, Rural Healthcare Services Programs, is to improve access to and delivery of rural health care services, including prevention, treatment, and recovery services. The Organization’s fiscal policies require expenditures to be approved in advance to e...

Criteria: The objective of Assistance Listing 93.912, Rural Healthcare Services Programs, is to improve access to and delivery of rural health care services, including prevention, treatment, and recovery services. The Organization’s fiscal policies require expenditures to be approved in advance to ensure adequate financial resources are available. The policies also require all checks to include two signatures, one of which must be an authorized Board member; purchases of non-expendable personal property and other purchases or contracts exceeding $5,000 to be supported by three competitive quotes; and all nonrecurring expenditures to be approved at least monthly. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Containment - Once we were made aware of this finding through the audit, we determined that we need to find a more effective way to document the Board’s knowledge and approvals of expenditures. Root Cause -HOPE is currently revising all policies and procedures. This was HOPE’s first federal single audit, so once we heard of the finding we prioritized revisions of fiscal policies and procedures to address the finding. Action Taken- The first board meeting after learning of this finding will be held on July 27th, 2026. Beginning with that meeting, the Board’s approval of the Statement of Activity Detail, consisting of all charges and journal entries entered into HOPE’s accounting system since the date of the last Board meeting, will be approved via motion and seconded and noted as such in the Board meeting minutes.

View Audit 408352

Finding 1225263 (2025-004)

Material Weakness 2025

Easter Seals of Greater Houston, Inc.

TX

Allowable Costs / Cost Principles Cash Management Matching / Level of Effort / Earmarking

Management has provided a template, which was reviewed and approved by the CFO in April 2026, to the AP Clerk without any roundings of the allocation percentages. Management will review the calculations between January 1 and April 2026 that were used for allocations and will correct any allocations ...

Management has provided a template, which was reviewed and approved by the CFO in April 2026, to the AP Clerk without any roundings of the allocation percentages. Management will review the calculations between January 1 and April 2026 that were used for allocations and will correct any allocations as necessary. Management will ensure the review of expenses include all calculations supporting the expense amounts. All these actions are effective January 1, 2026, and will be managed by the Chief Financial Officer.

View Audit 408306

Finding 1225234 (2025-001)

Material Weakness 2025

Advancing Connecticut Together, Inc. and Subsidiary

CT

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles

Management has strengthened internal controls over payroll processing and timecard approvals. Effective January 1, 2026, prior to processing each payroll, the Organization downloads a complete file of timesheet hours by employee, hour type, and cost center and compares the data against the contractu...

Management has strengthened internal controls over payroll processing and timecard approvals. Effective January 1, 2026, prior to processing each payroll, the Organization downloads a complete file of timesheet hours by employee, hour type, and cost center and compares the data against the contractual allocation plan. Any exception or deviation identified through this review is routed to the responsible supervisor for resolution before payroll is processed. Supervisors are responsible for correcting and approving timecard errors or documenting confirmation that the timesheet accurately reflects the work performed. This process is designed to ensure that timecards are reviewed, approved, and retained in support of payroll costs charged to federal awards. Management will continue to evaluate this control and implement enhancements as needed as part of its ongoing commitment to continuous quality improvement.

View Audit 408259

Finding 1225086 (2025-003)

Material Weakness 2025

Forest Municipal School Distrct

MS

Subrecipient Monitoring Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.112 § 200.302 § 200.303 § 200.403

Finding 2025-003 a. Name of Contact Person Responsible for Corrective Action: Jeff Jones, Business Manager b. Corrective Action Planned: Additional Training has been provided during professional development sessions to keep in the forefront the importance of preventing conflicts of interest as well ...

Finding 2025-003 a. Name of Contact Person Responsible for Corrective Action: Jeff Jones, Business Manager b. Corrective Action Planned: Additional Training has been provided during professional development sessions to keep in the forefront the importance of preventing conflicts of interest as well as possible nepotism as defined by Miss. Code Ann. § 25-1-53 and Miss. Code Ann. § 25-4-105(1). New hires are required to disclose possible conflicts of interest during the application process. Department heads making recommendations for hire are required to disclose if they are related to the person they are recommending for hire. c. Anticipated Completion Date: Training was provided in February, 2026, after disclosures were added to the employment applications in the human resource software asking the applicant to disclose if they are aware if they are related to anyone currently working in the district. As soon as the violation was identified, the Office of Child Nutrition at the Mississippi Department of Education was notified

View Audit 408246

Finding 1225081 (2025-003)

Material Weakness 2025

Laramie Child Development Corporation

WY

Allowable Costs / Cost Principles

Finding #2025-003: Payroll Error Responsible Individual: Debbie Sullivan, Fiscal Coordinator and Jennifer Brook, Chief Financial Officer Corrective Action Plan: The error resulted from a payroll system calculation issue. Future wage adjustments will be reviewed for potential similar errors. Anticipa...

Finding #2025-003: Payroll Error Responsible Individual: Debbie Sullivan, Fiscal Coordinator and Jennifer Brook, Chief Financial Officer Corrective Action Plan: The error resulted from a payroll system calculation issue. Future wage adjustments will be reviewed for potential similar errors. Anticipated Completion Date: October 31, 2026

View Audit 408239

Finding 1225066 (2025-071)

Material Weakness 2025

State of Rhode Island

RI

Allowable Costs / Cost Principles Questioned Costs

2025-071a: EOHHS is actively reassessing the current MMIS system configuration and operational processes. In collaboration with Gainwell, a dedicated project is underway to strengthen controls and implement guardrails designed to prevent this from occurring in the future. Several potential solutions...

2025-071a: EOHHS is actively reassessing the current MMIS system configuration and operational processes. In collaboration with Gainwell, a dedicated project is underway to strengthen controls and implement guardrails designed to prevent this from occurring in the future. Several potential solutions are currently being evaluated and developed, with the goal of enhancing the system, oversight, and compliance. 2025-071b: The State is required to provide ongoing oversight and monitoring of CCBHC’s. EOHHS Program Integrity Unit has implemented an audit plan for all CCBHC’s. This plan includes review of historical records as well as on-site visits. Should any findings or questioned costs be identified, EOHHS will determine the appropriate corrective actions and reimburse the federal grantor, as necessary. 2025-071c: Given all CCBHC’s will be audited, any findings identified during an audit or investigation will be evaluated by EOHHS. If EOHHS concludes that a credible allegation of fraud exists, EOHHS will prepare the case record and submit a referral to MFCU for investigation and any subsequent action deemed appropriate. Anticipated Completion Dates: 2025-071a: January 2027 2025-071b: September 2027 2025-071c: Ongoing Contact Persons: Hector Rivera, Interdepartmental Project Manager, Executive Office of Health and Human Services hector.l.rivera@ohhs.ri.gov Lynn Doherty, Managed Care Compliance Officer, Executive Office of Health & Human Services lynn.doherty@ohhs.ri.gov

View Audit 408197

Finding 1225065 (2025-070)

Material Weakness 2025

State of Rhode Island

RI

Allowable Costs / Cost Principles Questioned Costs § 200.303

EOHHS is in agreement with these findings. EOHHS has successfully addressed the deficiencies noted in these findings with updated requirements for this provider type. Community Health Workers have been elevated to high-risk status by Medicaid under “Medicaid Payments and Providers” 210-RICR-20-00-1,...

EOHHS is in agreement with these findings. EOHHS has successfully addressed the deficiencies noted in these findings with updated requirements for this provider type. Community Health Workers have been elevated to high-risk status by Medicaid under “Medicaid Payments and Providers” 210-RICR-20-00-1, which necessitates a National Criminal Background Check through fingerprinting. All enrolled community health worker providers were disenrolled effective December 1, 2025, and required to apply for enrollment under the new, enhanced requirements in the latest Community Health Worker Provider Manual, including the background check and requirement to enroll as a group with a National Provider Identifier (NPI), and as individual rendering providers with an NPI. All current CHW providers are now enrolled with the enhanced screening requirements. Limitations on reimbursement for services have also been successfully implemented, with system edits in place to deny claims billed in noncompliance with the new requirements outlined in the provider manual. Additionally, EOHHS Office of Program Integrity has audited outlier providers (in terms of utilization metrics), identifying overpayments and also collaborating with the MFCU for law enforcement intervention. EOHHS considers finding 2025-070a to be completed based on previous activities. For finding, 2025-070b, EOHHS is finalizing its last CHW audits while the MFCU completes its investigations based on Program Integrity’s referrals. Anticipated Completion Dates: 2025-070a: Complete 2025-070b: Estimate is August 2026 Contact Person: Nicholas James, Implementation Director of Policy and Programs, Executive Office of Health and Human Services nicholas.james@ohhs.ri.gov

View Audit 408197

Finding 1225064 (2025-069)

Material Weakness 2025

State of Rhode Island

RI

Allowable Costs / Cost Principles Subrecipient Monitoring

EOHHS will establish an audit cycle to this service that will ensure the billing requirements for all bundled services are clear and that it is also clear that the unbundling of the rates is not allowed and may cause recoups for the services billed. Based on the results of the audit, systemic billin...

EOHHS will establish an audit cycle to this service that will ensure the billing requirements for all bundled services are clear and that it is also clear that the unbundling of the rates is not allowed and may cause recoups for the services billed. Based on the results of the audit, systemic billing error issues will be reviewed with Gainwell and evaluated for edits to correct the issues. EOHHS will also engage with Gainwell and BHDDH to implement enhanced technical assistance to ensure compliance. Anticipated Completion Date: December 31, 2026 Contact Persons: David McMahon, Assistant Director of Financial Contracts, Executive Office of Health and Human Services david.g.mcmahon@ohhs.ri.gov Hector Rivera, Interdepartmental Project Manager, Executive Office of Health and Human Services hector.l.rivera@ohhs.ri.gov

View Audit 408197

Finding 1225063 (2025-068)

Material Weakness 2025

State of Rhode Island

RI

Allowable Costs / Cost Principles Questioned Costs Subrecipient Monitoring

2025-068a: EOHHS will establish a systemwide audit cycle of this service to ensure the providers are appropriately billing. 2025-068b: EOHHS is actively reassessing the current MMIS system configuration and operational processes. In collaboration with Gainwell Technologies, a dedicated project is un...

2025-068a: EOHHS will establish a systemwide audit cycle of this service to ensure the providers are appropriately billing. 2025-068b: EOHHS is actively reassessing the current MMIS system configuration and operational processes. In collaboration with Gainwell Technologies, a dedicated project is underway to strengthen controls and implement guardrails designed to prevent this from occurring in the future. Several potential solutions are currently being evaluated and developed, with the goal of enhancing the system, oversight, and compliance. 2025-068c: EOHHS is actively reassessing the current provider Billing Manual to ensure the billing requirements for all bundled services is clear and that it is also clear that the unbundling of the rates is not allowed and may cause recoups for the services billed. 2025-068d: EOHHS will establish a systemwide audit cycle of this service to ensure the providers are appropriately billing. Anticipated Completion Date: November 30, 2026 Contact Persons: David McMahon, Assistant Director of Financial Contracts, Executive Office of Health and Human Services david.g.mcmahon@ohhs.ri.gov Hector Rivera, Interdepartmental Project Manager, Executive Office of Health and Human Services hector.l.rivera@ohhs.ri.gov

View Audit 408197

Finding 1225062 (2025-067)

Material Weakness 2025

State of Rhode Island

RI

Allowable Costs / Cost Principles Cash Management Eligibility

To satisfy this audit finding, EOHHS requested a systems solution to process Eleanor Slater Hospital (ESH) claims which would automate a recipient’s TPL, Medicare, and MCO financial obligations before Medicaid is billed. EOHHS, BHDDH, and Gainwell Technologies have been working on said system modifi...

To satisfy this audit finding, EOHHS requested a systems solution to process Eleanor Slater Hospital (ESH) claims which would automate a recipient’s TPL, Medicare, and MCO financial obligations before Medicaid is billed. EOHHS, BHDDH, and Gainwell Technologies have been working on said system modification project (PJ0630 – Other Insurance Edits for Eleanor Slater Hospital Claims) and the Business Design Document was reviewed with all parties on 6/22/2026. Anticipated Completion Date: SFY 2027 Q1 Contact Person: Hector Rivera, Interdepartmental Project Manager, Executive Office of Health and Human Services hector.l.rivera@ohhs.ri.gov

View Audit 408197

Finding 1225061 (2025-066)

Material Weakness 2025

State of Rhode Island

RI

Eligibility Reporting Questioned Costs

2025-066a: In order to address repeat income deficiencies from SWICA, Medicaid added The Work Number (TWN) as a new data source in August 2025. Since then, RI Bridges has been modified to first verify earned income against TWN. With this enhancement, Medicaid has seen an improvement in how earned in...

2025-066a: In order to address repeat income deficiencies from SWICA, Medicaid added The Work Number (TWN) as a new data source in August 2025. Since then, RI Bridges has been modified to first verify earned income against TWN. With this enhancement, Medicaid has seen an improvement in how earned income is verified during the post-eligibility verification (PEV) and annual renewal processes. Medicaid has determined the individuals flagged as being enrolled under the expansion pathway beyond their 65th birthday are the result of exceptions to the mass update eligibility process. Medicaid is working with our system vendor to develop a solution that will bypass this exception and terminate expansion eligibility for those turning 65 years old. RI Bridges appropriately identified the individual in question as requiring verification of citizenship status. However, as noted in the expansion age-out response, the mass update eligibility process exceptioned out, leaving the verification as unresolved and requiring manual review. Medicaid is working with our system vendor to develop a solution that will bypass this exception and terminate eligibility. Effective December 2025, the RI Bridges system receives quarterly matches from the SSA Death Master File (DMF). The DMF is automatically sent to the State as part of the quarterly PARIS data matching process. The State has deployed temporary system measures to process the file and automatically terminate Medicaid eligibility for individuals flagged as deceased on the DMF. As per section 71104 of the Working Families Tax Cut (WFTC) legislation, signed by the President on 7/4/25, the State will be deploying a long-term system enhancement to, “at least a quarterly basis, check the DMF to identify if enrolled individuals are deceased. If an individual is identified as deceased on the DMF, then the state must treat this information as factual, disenroll the individual, and discontinue any payments for items or services furnished after the death of the individual.” This enhancement is scheduled for the March 2027 release. In July 2024, federal partners operating the PARIS interstate match informed the State of a hold on PARIS interstate matching files. PARIS lifted the hold in October 2024. In November 2024, the State identified several defects in the PARIS results and suppressed requests for verification. A temporary system enhancement was logged to address the deficiencies and ensure the process was only requesting residency verification from individuals believed to be receiving Medicaid in another State. Long-term enhancements to the PARIS interstate match process are scheduled for late 2027. 2025-066b: Medicaid will continue to work with the Department of Human Services and HealthSource RI to improve reconciliation and quality assurance monitoring of eligibility and operational processes. Including, but not limited to automated quality control checks on batch processes, manual eligibility reviews of quarterly/annual activities, creating specialized reports, improving task logic, and identifying areas of repeat non-compliance to ensure appropriate controls are in place. 2025-066c: Upon notification from the systems team, Medicaid Finance will return any identified ineligible costs to the federal grantor. Anticipated Completion Dates: 2025-066a: Q4 2026 (exception scenarios) and Q4 2027 (PARIS) 2025-066b: Q4 2026 2025-066c: Ongoing Contact Persons: Anthony Salvo, Implementation Director of Policy and Programs, Executive Office of Health and Human Services anthony.salvo@ohhs.ri.gov Dezeree Hodish, Associate Director (Financial Management), Executive Office of Health and Human Services dezeree.hodish@ohhs.ri.gov

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