Corrective Action Plans

Finding 1216532 (2025-001)

Material Weakness 2025

WI

Cash Management Reporting Internal Control / Segregation of Duties

Condition: During audit fieldwork, our testing resulted in a restatement of fund balance in order to correctly record capital asset activity. Plan: The District will implement internal controls to properly record capital assets on a timely basis prior to audit fieldwork. Anticipated Date of Completi...

Condition: During audit fieldwork, our testing resulted in a restatement of fund balance in order to correctly record capital asset activity. Plan: The District will implement internal controls to properly record capital assets on a timely basis prior to audit fieldwork. Anticipated Date of Completion: The District will correct this for the 2025-2026 school year. Name of Contact Person: Nicki Ells, Business Manager Management Response: The Adams-Friendship School District accepts the plan for the Corrective Action listed above and does not dispute anything.

View Audit 403034

Finding 1216441 (2025-002)

Material Weakness 2025

Highlands County, Florida

FL

Questioned Costs Cash Management Material Weakness § 200.303

Disaster Grants - Public Assistance (Presidentially Declared Disasters) – Assistance Listing No. 97.036 Recommendation: We recommend the County establish and implement formal procedures requiring supervisory review and approval of all reports submitted to grantors. Evidence of review should be docum...

Disaster Grants - Public Assistance (Presidentially Declared Disasters) – Assistance Listing No. 97.036 Recommendation: We recommend the County establish and implement formal procedures requiring supervisory review and approval of all reports submitted to grantors. Evidence of review should be documented and retained, including the reviewer’s signature or electronic approval, the date of review, and the date of submission, to support compliance with reporting requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County has established a review and approval process for quarterly reports. Reports will be reviewed and signed by a member of management to ensure accuracy and completeness of the data being submitted. Name of the contact person responsible for corrective action: Tanya Cannady, Business Services Director Planned completion date for corrective action plan: June 2026

View Audit 402949

Finding 1216437 (2025-001)

Material Weakness 2025

Highlands County, Florida

FL

Questioned Costs Allowable Costs / Cost Principles Cash Management § 200.303

Disaster Grants - Public Assistance (Presidentially Declared Disasters) – Assistance Listing No. 97.036 Recommendation: We recommend the County implement a formal review and reconciliation process to ensure that employees' hours reported on Activity Logs are verified against the reimbursement reques...

Disaster Grants - Public Assistance (Presidentially Declared Disasters) – Assistance Listing No. 97.036 Recommendation: We recommend the County implement a formal review and reconciliation process to ensure that employees' hours reported on Activity Logs are verified against the reimbursement request prior to submitting it to the grantor. This review should be performed by personnel knowledgeable of the grant requirements and documented to evidence the review was completed. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will establish a process to maintain effective internal controls to ensure that the documentation is complete and accurately reflected in the reimbursement requests. An internal review and reconciliation process for employee activity logs will be performed prior to submitting to the grantor. Name of the contact person responsible for corrective action: Tanya Cannady, Business Services Director Planned completion date for corrective action plan: June 2026

View Audit 402949

Finding 1216416 (2025-001)

Material Weakness 2025

Veterans Health Foundation

PA

Cash Management Internal Control / Segregation of Duties § 200.303

Veterans’ Health Foundation Corrective Action Plan Federal Drawdown Internal Control Finding 2025-001 Management agrees with the finding. The identified exceptions resulted from inconsistent retention of documented review evidence during a period of transition in finance personnel. While drawdown re...

Veterans’ Health Foundation Corrective Action Plan Federal Drawdown Internal Control Finding 2025-001 Management agrees with the finding. The identified exceptions resulted from inconsistent retention of documented review evidence during a period of transition in finance personnel. While drawdown requests were supported by allowable expenditures and subject to financial oversight, documentation evidencing the control was not consistently maintained for certain transactions. To strengthen internal controls over federal drawdown requests and ensure continued compliance with 2 CFR 200.303, the Veterans Health Foundation will revise and formalize its drawdown procedures as follows: 1. Federal drawdown requests will be prepared by designated finance personnel and supported by appropriate expenditure documentation. 2. The Controller will review supporting documentation and authorize all federal drawdown requests prior to submission to ensure the accuracy, allowability, and appropriateness of reimbursement requests. 3. The CEO will perform and document a monthly reconciliation review of drawdown activity and related expenditures as an additional oversight and monitoring control. 4. The Foundation will update its formal policies and procedures within 60 days to reflect the revised drawdown preparation, review, authorization, reconciliation, and documentation retention requirements. 5. The Foundation is strengthening its document storage and records retention processes to ensure supporting documentation for drawdowns and other federal award activities is consistently maintained, centrally stored, and readily accessible for audit and compliance purposes. 6. As part of the Foundation’s broader administrative modernization initiative, the Foundation is implementing a new cloud-based file storage and records management system during the current fiscal year to improve document retention, access controls, continuity of operations, and long-term compliance oversight. 7. Management has communicated the revised control procedures to finance personnel and will monitor compliance with the updated process. The Foundation believes these corrective actions adequately address the finding and strengthen internal controls over federal cash management activities and records retention. Responsible Officials: Controller and Chief Executive Officer Anticipated Completion Date: Policy updates will be completed within 60 days. All other corrective actions have been implemented effective immediately, with the new cloud-based file storage system to be implemented during the current fiscal year.

View Audit 402933

Finding 1216370 (2025-004)

Material Weakness 2025

Village of Bellevue

MI

Subrecipient Monitoring Allowable Costs / Cost Principles Questioned Costs § 200.303 § 200.305 § 200.318

VILLAGE OF BELLEVUE 201 N. Main St. Bellevue, MI 49021 269-763-9571 • Fax 269-763-9998 manager@bellevuemi.net • www.bellevuemi.net treasurer@bellevuemi.net 69 CORRECTIVE ACTION PLAN Certain matters were brought to our attention as a result of the audit process. These are described more fully in the ...

VILLAGE OF BELLEVUE 201 N. Main St. Bellevue, MI 49021 269-763-9571 • Fax 269-763-9998 manager@bellevuemi.net • www.bellevuemi.net treasurer@bellevuemi.net 69 CORRECTIVE ACTION PLAN Certain matters were brought to our attention as a result of the audit process. These are described more fully in the Schedule of Findings and Questioned Costs. We evaluated the matters as noted below and have described our planned actions as a result. 2025-001 MATERIAL JOURNAL ENTRIES PROPOSED BY AUDITORS Views of Responsible Officials: Management agrees with the finding and will take appropriate steps to remedy noted finding. Corrective action plan response: The Village will take steps to ensure that material journal entries are not necessary at the time future audit analysis is performed. Responsible Party: Nicole Roberts (Village Manager) and Michelle Pennington (Assistant Village Manager). Date of Planned Corrective Action: December 31, 2026 2025-002 SEGREGATION OF DUTIES OVER KEY FINANCIAL PROCESSES Views of Responsible Officials: Management agrees with the finding and has taken appropriate action to remedy the bank reconciliation portion of the finding during fiscal year 2025. Corrective action plan response: The Village will take steps to actively seek ways to strengthen its internal control structure. This may include requiring as much independent review, reconciliation, and approval of journal entries and bank reconciliations by qualified members of management and documenting such review as part of the Village’s control procedures. Responsible Party: Nicole Roberts (Village Manager) and Michelle Pennington (Assistant Village Manager). Date of Planned Corrective Action: December 31, 2026 2025-003 BANK RECONCILIATIONS Views of Responsible Officials: Management agrees with the finding and will take appropriate steps to remedy noted finding. Corrective action plan response: The Village will take steps to ensure that bank reconciliations are documented as reviewed and reconciliating items are properly documented. Responsible Party: Nicole Roberts (Village Manager) and Michelle Pennington (Assistant Village Manager). Date of Planned Corrective Action: December 31, 2026

View Audit 402917

Finding 1216191 (2025-001)

Material Weakness 2025

Total Action Against Poverty in the Roanoke Valley, INC & Subsidiaries

VA

Subrecipient Monitoring Cash Management Reporting

To prevent recurrence, we will implement the following actions:  Monthly reconciliation of drawdowns and PMS records to ensure expenditures and receipts are properly aligned and discrepancies are identified promptly.  Pre-submission reconciliation checklist to verify drawdowns, expenditures, and P...

To prevent recurrence, we will implement the following actions:  Monthly reconciliation of drawdowns and PMS records to ensure expenditures and receipts are properly aligned and discrepancies are identified promptly.  Pre-submission reconciliation checklist to verify drawdowns, expenditures, and PMS balances prior to report submission.  Enhanced coordination with finance staff to ensure all drawdowns are accurately charged to the correct program at the time of posting.  Formal escalation process for unresolved PMS or federal reporting system issues to ensure timely resolution with the federal agency.  Earlier internal reporting deadlines to allow sufficient time for review and resolution of any discrepancies prior to federal due dates.  Documentation retention procedures to ensure all communications, PMS discrepancies, and resolution steps are maintained to support audit review.  Ongoing training/refresher guidance for finance and program staff on drawdown procedures and federal reporting requirements.

View Audit 402682

Finding 1216189 (2025-001)

Material Weakness 2025

Wesley Homes, Inc.

GA

Questioned Costs Cash Management HUD Housing Programs

1. Recommendations: We recommend management Establish and implement robust internal control policies that strictly prohibit the payment of non-project expenses from the Project funds. 2. Action Taken: Management agrees with the findings and recommendations. Management will review and implement an up...

1. Recommendations: We recommend management Establish and implement robust internal control policies that strictly prohibit the payment of non-project expenses from the Project funds. 2. Action Taken: Management agrees with the findings and recommendations. Management will review and implement an updated cash disbursement procedure to ensure that Project funds are restricted solely to project-specific operations and are not disbursed on behalf of separate entities. Management is in the process of receiving the full reimbursement of the $255,270 from the affiliated entity. Implementation date: June 30, 2026

View Audit 402675

Finding 1216188 (2025-003)

Material Weakness 2025

Wesley Homes, Inc.

GA

Questioned Costs Cash Management HUD Housing Programs

1. Recommendations: We recommend management Establish and implement robust internal control policies that strictly prohibit the payment of non-project expenses from the Project funds. 2. Action Taken: Management agrees with the findings and recommendations. Management will review and implement an up...

1. Recommendations: We recommend management Establish and implement robust internal control policies that strictly prohibit the payment of non-project expenses from the Project funds. 2. Action Taken: Management agrees with the findings and recommendations. Management will review and implement an updated cash disbursement procedure to ensure that Project funds are restricted solely to project-specific operations and are not disbursed on behalf of separate entities. Management is in the process of receiving the full reimbursement of the $82,459 from the affiliated entity. Implementation date: June 30, 2026

View Audit 402674

Finding 1216185 (2025-002)

Material Weakness 2025

Asbury Harris, Llc, A Division of Wesley Homes, Inc.

GA

Questioned Costs Cash Management HUD Housing Programs

1. Recommendations: We recommend management Establish and implement robust internal control policies that strictly prohibit the payment of non-project expenses from the Project funds. 2. Action Taken: Management agrees with the findings and recommendations. Management will review and implement an up...

1. Recommendations: We recommend management Establish and implement robust internal control policies that strictly prohibit the payment of non-project expenses from the Project funds. 2. Action Taken: Management agrees with the findings and recommendations. Management will review and implement an updated cash disbursement procedure to ensure that Project funds are restricted solely to project-specific operations and are not disbursed on behalf of separate entities. Management is in the process of receiving the full reimbursement of the $59,971 from the affiliated entity. Implementation date: June 30, 2026

View Audit 402671

Finding 1216178 (2025-001)

Material Weakness 2025

Los Angeles Jewish Home for the Aging

CA

Period of Performance Questioned Costs Allowable Costs / Cost Principles § 200.403 § 200.430

As required by the OMB Uniform Guidance, we have provided our response and corrective action plan addressing the finding in the Schedule of Findings and Questioned Costs for the year ended August 31, 2025. Finding 2025-001: Allowable Costs – Significant Deficiency in Internal Control Over Compliance...

As required by the OMB Uniform Guidance, we have provided our response and corrective action plan addressing the finding in the Schedule of Findings and Questioned Costs for the year ended August 31, 2025. Finding 2025-001: Allowable Costs – Significant Deficiency in Internal Control Over Compliance and Instance of Noncompliance Management’s Views – Management agrees with the finding. LAJH acknowledges that payroll reimbursement calculations submitted under the federal program were prepared using subsequent employee pay rates rather than the contemporaneous pay rates applicable during the grant performance period and that certain duplicative expenditures were included in error. Management recognizes that these errors resulted in overstated costs totaling $79,825. Corrective Action Plan – LAJH will implement enhanced internal control procedures over the preparation and review of payroll costs charged to federal awards. Specifically, management will require all payroll reimbursement calculations to be supported by contemporaneous payroll registers and employee pay rate documentation applicable to the period during which services were performed. Person Responsible for Corrective Action: Robin Ray, Corporate Controller Anticipated Completion Date: May 31, 2026

View Audit 402659

Finding 1216151 (2025-004)

Material Weakness 2025

Gratz College

PA

Special Tests & Provisions Subrecipient Monitoring Cash Management

Finding 2025-004 Corrective Action Plan The Finance team will collaborate with the Director of Financial Aid and the Registrar to strengthen the format of notifications so that credit balances are paid to the students or parent borrowers within the required timeframe as outlined in the Federal Direc...

Finding 2025-004 Corrective Action Plan The Finance team will collaborate with the Director of Financial Aid and the Registrar to strengthen the format of notifications so that credit balances are paid to the students or parent borrowers within the required timeframe as outlined in the Federal Direct Student Loans Program. The corrective action plan is anticipated to be completed on or before August 31, 2026. Names of Contact People Responsible for Corrective Action Jeanne Cavalieri-Grover –Director of Fiancial Aid Thomas R. Cipriano, Jr. – Manager of Business Operations and Facilities Karen West – Coordinator of Student Billing Jade Jackman – Registrar

View Audit 402625

Finding 1216149 (2025-003)

Material Weakness 2025

Greater Bridgeport Jewish Housing Corp.

CT

HUD Housing Programs Cash Management

The Agency will ensure that surplus cash calculations are prepared and reviewed timely, and that all components that impact the calculation are accurate and in accordance with GAAP. In addition, for any resulting calculations that indicate surplus cash exists, the Agency will remit the funds to the ...

The Agency will ensure that surplus cash calculations are prepared and reviewed timely, and that all components that impact the calculation are accurate and in accordance with GAAP. In addition, for any resulting calculations that indicate surplus cash exists, the Agency will remit the funds to the residual receipts account within 90 days of fiscal year end.

View Audit 402616

Finding 1216064 (2025-001)

Material Weakness 2025

Baptist Health Deaconess Madisonville, Inc.

KY

Allowable Costs / Cost Principles Cash Management Significant Deficiency § 200.303

Finding 2025-001 Federal Agency Name: Department of the Health and Human Services Program Name: Rural Healthcare Services Program Federal Financial Assistance Listing #93.912 Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Finding Summary: For a portion of...

Finding 2025-001 Federal Agency Name: Department of the Health and Human Services Program Name: Rural Healthcare Services Program Federal Financial Assistance Listing #93.912 Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles Finding Summary: For a portion of the year, BHD, LLC calculated their indirect cost rate based on the total grant budget and took an equal amount of that per month instead of calculating the indirect cost rate per direct expenditures for each month. When they started to calculate the indirect cost rate per direct expenditures for each month, they used the wrong cost pool per the budget and award. Responsible Individuals: Valarie Howard, CFO Corrective Action Plan: Historically, the indirect cost received by this grant has not been dependent of the direct expenditures. Based on verbal conversations with the HRSA grant project manager, requesting reimbursement for the indirect costs evenly over the year based on the budget submitted was acceptable. Therefore, the accounting treatment has been reflective of that. However, management agrees that recording the indirect cost based on the direct cost expenditures monthly is reasonable and appropriate and will make the change accordingly. The action plan was implemented immediately upon communication of the finding. Due to the timing of the prior year audit and communication of findings, the implementation of the action plan was mid- year during the current fiscal year resulting in a repetitive finding. Anticipated Completion Date: Action plan was implemented directly after issuance of prior year audit and communication of finding to management (March 2025).

View Audit 402591

Finding 1216062 (2025-002)

Material Weakness 2025

Town of Westerly, Rhode Island

RI

Subrecipient Monitoring Procurement, Suspension & Debarment Allowable Costs / Cost Principles

Audit Finding Reference: 2025-002 Document Policies and Procedures Over Federal Awards Planned Corrective Action: - Perform a comprehensive review of existing federal award policies and procedures - Develop and formally document policies covering federal award administration, allowable costs, procur...

Audit Finding Reference: 2025-002 Document Policies and Procedures Over Federal Awards Planned Corrective Action: - Perform a comprehensive review of existing federal award policies and procedures - Develop and formally document policies covering federal award administration, allowable costs, procurement, cash management, subrecipient monitoring, reporting, and record retention Planned Implementation Date of Corrective Action: 1/1/2026 Person Resposible for Corrective Action: Finance Director/Senior Accountant Grant Administrator

View Audit 402590

Finding 1216047 (2025-004)

Material Weakness 2025

Communities in Schools of the Dallas Region, Inc.

TX

Questioned Costs Allowable Costs / Cost Principles Cash Management

Finding 2025-004: Allowable Costs – Material Weakness in Internal Controls Over Compliance and Compliance Finding Summary of Finding: Duplicate charges were identified within grant reimbursement submissions across reimbursement periods. Management Response During FY2025, grant reimbursement review p...

Finding 2025-004: Allowable Costs – Material Weakness in Internal Controls Over Compliance and Compliance Finding Summary of Finding: Duplicate charges were identified within grant reimbursement submissions across reimbursement periods. Management Response During FY2025, grant reimbursement review procedures were not sufficiently standardized to consistently identify duplicate charges submitted across reimbursement periods. Management is currently evaluating and formalizing enhanced grant reimbursement review workflows designed to improve consistency of review and reduce the risk of duplicate charges within reimbursement submissions. Planned procedures include reconciliation of reimbursement schedules to the general ledger, review of previously submitted reimbursement activity prior to submission of subsequent requests, and clarification of review responsibilities between management and the outsourced accounting team. Management is in the process of documenting these procedures and plans to implement the enhanced review workflow as soon as practicable. Separately, as part of ongoing remediation and compliance monitoring efforts, management has implemented a recurring quarterly Grant Utilization Review process intended to improve oversight of reimbursement activity, grant utilization, and reconciliation procedures across reimbursement periods. The first review meeting is scheduled for June 2026.

View Audit 402576

Finding 1215939 (2025-001)

Material Weakness 2025

South Kitsap School District No. 402

WA

Subrecipient Monitoring Eligibility Questioned Costs

Finding ref number: 2025-001 Finding caption: The District did not have adequate internal controls and did not comply with federal eligibility requirements. Name, address, and telephone of District contact person: Heather Korten, Director of Business Services 2689 Hoover Ave SE Port Orchard, WA 9836...

Finding ref number: 2025-001 Finding caption: The District did not have adequate internal controls and did not comply with federal eligibility requirements. Name, address, and telephone of District contact person: Heather Korten, Director of Business Services 2689 Hoover Ave SE Port Orchard, WA 98366 (360) 874-7015 Corrective action the auditee plans to take in response to the finding: 1. Documented Eligibility Review The District will require a documented eligibility review for each student included on any future CWSD application. This review will verify that each student is both: A dependent of active-duty military personnel; and A student with a qualifying severe disability under CWSD program requirements. 2. Comparison to Impact Aid Source Data Prior to submission, the Business Department will compare the students included on the CWSD application to the District’s source documentation for military-connected students, including data maintained through the U.S. Department of Education Impact Aid process. 3. Secondary Review by Business Services The Business Department will perform an independent secondary review of the CWSD application before submission. The application will not be submitted until Business Services has reviewed and documented agreement between the application data and the District’s supporting eligibility records. 4. Special Services Review of Disability Eligibility and Costs The Special Services Department will remain responsible for identifying students with disabilities who may meet the CWSD criteria and for supporting the special education cost information included in the application. 5. Written Procedures and Sign-Off Requirements The District will establish written procedures identifying the staff responsible for preparing, reviewing, approving, and retaining documentation for the CWSD application. The procedures will require documented review and approval by both Special Services and Business Services prior to submission. 6. Documentation Retention The District will retain supporting documentation for each student included on the application, including military-connected status, disability eligibility support, cost documentation, review checklists, and final application approval. 7. Training and Annual Review Staff involved in preparing or reviewing the CWSD application will review applicable program requirements annually before the application is prepared. Anticipated date to complete the corrective action: June 30, 2026

View Audit 402505

Finding 1215842 (2025-016)

Material Weakness 2025

State of Connecticut Drinking Water Fund - State Revolving Fund

CT

Eligibility Questioned Costs Special Tests & Provisions

Recommendation: The Department of Social Services should provide the necessary resources and institute procedures to ensure that it uses all information from eligibility, income, and death matches to ensure that it correctly issues benefits to or on behalf of eligible clients. DSS should return fede...

Recommendation: The Department of Social Services should provide the necessary resources and institute procedures to ensure that it uses all information from eligibility, income, and death matches to ensure that it correctly issues benefits to or on behalf of eligible clients. DSS should return federal reimbursements for unallowable expenditures claimed under Medicaid and SNAP. Corrective Action Plan as Reported by the Department of Social Services: The Department agrees with this finding. DSS staff is in the development phase of implementing new automated procedures to ensure timely and accurate action is taken to discontinue benefits of deceased clients when date of death information is received and matched to the Connecticut Department of Public Health’s State Vital Records Office. Action has been taken to correct the errors cited, including discontinuing the benefits of the individuals that were verified as deceased, and recouping the overpayments as appropriate. Anticipated Completion Date: December 31, 2026 Department of Social Services Contact Person: Dan Giacomi, Program Division Director (860) 424-5080

View Audit 402418

Finding 1215841 (2025-015)

Material Weakness 2025

State of Connecticut Drinking Water Fund - State Revolving Fund

CT

Questioned Costs Special Tests & Provisions Cash Management

Recommendation: The Department of Social Services should amend the contract with its Medicaid recovery audit contractor to comply with federal regulations. Corrective Action Plan as Reported by the Department of Social Services: The Department agrees with this finding. The Department will review the...

Recommendation: The Department of Social Services should amend the contract with its Medicaid recovery audit contractor to comply with federal regulations. Corrective Action Plan as Reported by the Department of Social Services: The Department agrees with this finding. The Department will review the payment methodology at the next contract renewal. Anticipated Completion Date: October 1, 2027 Department of Social Services Contact Person: John Jakubowski, Director of Quality Assurance (860) 424-5855

View Audit 402418

Finding 1215838 (2025-012)

Material Weakness 2025

State of Connecticut Drinking Water Fund - State Revolving Fund

CT

Reporting Cash Management Matching / Level of Effort / Earmarking

Recommendation: The Department of Social Services should strengthen internal controls to ensure that it accurately reports and adequately reviews revenues, expenditures, collections, and contingency fees prior to submitting Form CMS 64. The Department of Social Services should strengthen internal co...

Recommendation: The Department of Social Services should strengthen internal controls to ensure that it accurately reports and adequately reviews revenues, expenditures, collections, and contingency fees prior to submitting Form CMS 64. The Department of Social Services should strengthen internal controls to ensure that it tracks, reports, and returns the federal share of overpayments to corresponding federal and state medical assistance programs. The Department of Social Services should resolve the issues affecting the Medicaid receivable balances and file the proper adjustment to correct the errors, unsupported amounts, and corresponding federal reimbursements on Form CMS 64. Corrective Action Plan as Reported by the Department of Social Services: The Department agrees with this finding. The Department will review internal controls to identify possible corrective actions. Anticipated Completion Date: December 31, 2026 Department of Social Services Contact Person: Briana Mitchell, Chief Officer Fiscal Administrative Services 1 (860) 424-5471

View Audit 402418

Finding 1215837 (2025-011)

Material Weakness 2025

State of Connecticut Drinking Water Fund - State Revolving Fund

CT

Eligibility Questioned Costs Cash Management § 200.303

Recommendation: The Department of Social Services should strengthen internal controls to ensure that only eligible recipients receive Medicaid services in accordance with federal laws and the Medicaid State Plan. Corrective Action Plan as Reported by the Department of Social Services: The Department...

Recommendation: The Department of Social Services should strengthen internal controls to ensure that only eligible recipients receive Medicaid services in accordance with federal laws and the Medicaid State Plan. Corrective Action Plan as Reported by the Department of Social Services: The Department agrees with this finding. The Department identified cases where overrides that were applied during the public health emergency were not removed. This resulted in individuals remaining enrolled inappropriately. Our Business Systems Division is implementing a tiered resolution approach, beginning with individuals enrolled in the Medicare Savings Program and HUSKY-C coverage. Please note: The Department will not be returning the questioned costs associated with this finding. According to federal regulations, recoveries based on eligibility errors can only be pursued when identified by programs operating under CMS’ Payment Error Rate Measurement program, per section 1903(u) of the Social Security Act and regulations at Title 42 CFR Part 431, Subpart Q. Anticipated Completion Date: December 31, 2026 Department of Social Services Contact Person: Dan Giacomi, Program Division Director (860) 424-5080

View Audit 402418

Finding 1215828 (2025-802)

Material Weakness 2025

State of Connecticut Drinking Water Fund - State Revolving Fund

CT

Cash Management

Recommendation: The Department of Mental Health and Addiction Services should strengthen internal controls over cash management to ensure federal funds it draws down for the Block Grant for Prevention and Treatment of Substance Use program are supported by expenditures. Corrective Action Plan as Rep...

Recommendation: The Department of Mental Health and Addiction Services should strengthen internal controls over cash management to ensure federal funds it draws down for the Block Grant for Prevention and Treatment of Substance Use program are supported by expenditures. Corrective Action Plan as Reported by the Department of Mental Health and Addiction Services: To address this issue and prevent its recurrence, management is implementing the following corrective actions: 1. Enhanced Reconciliation Procedures: The Department will strengthen the monthly and pre-drawdown reconciliation process to ensure that all draw requests are fully supported by corresponding program expenditures before submission. This revised process will help prevent errors in future drawdowns and ensure compliance with cash handling requirements. 2. Updated Written Procedures: Written procedures for drawdowns will be updated to clearly define drawdown eligibility criteria, documentation requirements, and approval responsibilities. These revisions will provide clear guidance to staff involved in the drawdown process. 3. Training and Staff Development: Management will conduct training for all relevant staff members involved in the drawdown and reconciliation process. This training will focus on the importance of compliance with federal requirements, internal controls, and the proper documentation needed for drawdowns. Anticipated Completion Date: March 31, 2026 Department of Mental Health and Addiction Services Contact Person: Maureen Goff, Assistant Chief of Fiscal & Administrative Services Maureen.Goff@ct.gov (959) 276-1627

View Audit 402418

Finding 1215826 (2025-200)

Material Weakness 2025

State of Connecticut Drinking Water Fund - State Revolving Fund

CT

Cash Management Internal Control / Segregation of Duties Questioned Costs § 200.303

Recommendation: The Department of Public Health should strengthen internal controls over cash management to ensure that federal drawdowns align with the immediate cash needs to administer the program. Corrective Action Plan as Reported by the Department of Public Health: Management Assurance and Fis...

Recommendation: The Department of Public Health should strengthen internal controls over cash management to ensure that federal drawdowns align with the immediate cash needs to administer the program. Corrective Action Plan as Reported by the Department of Public Health: Management Assurance and Fiscal have worked together to identify gaps and inefficiencies in the drawdown tool. Management Assurance will periodically evaluate the drawdown tool’s usefulness and effectiveness as a cash management internal control. Fiscal will continue to monitor grant draws through the use of the improved drawdown tool. Anticipated Completion Date: Ongoing Department of Public Health Contact Person: Chuma Amechi, Fiscal Administrative Manager chukwuma.amechi@ct.gov (860) 509-7233 Ryan Wenzel, Supervising Accounts Examiner ryan.wenzel@ct.gov (860) 509-7822

View Audit 402418

Finding 1215824 (2025-025)

Material Weakness 2025

State of Connecticut Drinking Water Fund - State Revolving Fund

CT

Eligibility Internal Control / Segregation of Duties Questioned Costs § 200.303 § 200.403

Recommendation: The Department of Social Services should strengthen internal controls to ensure that only eligible recipients receive Money Follows the Person Rebalancing Demonstration services in accordance with federal laws, award terms and conditions, and the Money Follows the Person Operational ...

Recommendation: The Department of Social Services should strengthen internal controls to ensure that only eligible recipients receive Money Follows the Person Rebalancing Demonstration services in accordance with federal laws, award terms and conditions, and the Money Follows the Person Operational Protocol. Corrective Action Plan as Reported by the Department of Social Services: The Department agrees in part with this finding. Condition #1: DSS agrees that participation end dates were not updated timely due to cross-system manual entry limitations. Reconciliation procedures and supervisory oversight will be strengthened. Condition #2: DSS agrees that participation suspensions were not consistently reflected across systems due to timing delays. Monitoring and real-time reconciliation controls will be enhanced. Condition #3: DSS agrees approved costs exceeded institutional thresholds in limited cases. Variances were clinically justified, reviewed, and authorized. DSS will strengthen documentation and internal protocols to ensure clearer policy alignment. Condition #4: DSS agrees that the documentation was incomplete in one instance. Internal review standards will be reinforced to ensure comparative cost analyses are consistently documented. Please note, the Department will not be returning the questioned costs associated with this finding. According to federal regulations, recoveries based on eligibility errors can only be pursued when identified by programs operating under Centers for Medicare and Medicaid Services’ (CMS) Payment Error Rate Measurement program, per section 1903(u) of the Social Security Act and regulations at Title 42 CFR Part 431, Subpart Q. Anticipated Completion Date: December 31, 2026 Department of Social Services Contact Person: Christine Weston, Program Division Director (860) 424-5012

View Audit 402418

Finding 1215823 (2025-024)

Material Weakness 2025

State of Connecticut Drinking Water Fund - State Revolving Fund

CT

Internal Control / Segregation of Duties Questioned Costs Cash Management § 200.303 § 200.403

Recommendation: The Department of Developmental Services should strengthen internal controls to ensure it obtains the required signatures for the individual plan for all Money Follows the Person Rebalancing Demonstration recipients. The Department of Social Services should conduct an audit of the me...

Recommendation: The Department of Developmental Services should strengthen internal controls to ensure it obtains the required signatures for the individual plan for all Money Follows the Person Rebalancing Demonstration recipients. The Department of Social Services should conduct an audit of the medical provider in accordance with Section 17b-99 of the Connecticut General Statutes to ensure integrity of the Money Follows the Person Rebalancing Demonstration program. Corrective Action Plan as Reported by the Department of Developmental Services: DDS agrees with the finding. The errors were attributed to current manual processes and case management oversight regarding documenting signatures when individual plan (IP) meetings are held remotely rather than in-person. Most of the deficiencies (5 of 6) were isolated to one case manager. The MFP division is small with 3-4 case managers, causing a higher error rate when extrapolated against the sample size. The missing support service records have been forwarded to the Department of Administrative Services for research. There are plans to improve the individual plan process to enhance internal controls through automation. In the interim, case managers and case manager supervisors will be reminded of the IP signature requirements. Department of Developmental Services Anticipated Completion Date: June 30, 2026 Department of Developmental Services Contact Person: Krista Ostaszeski, Health Management Administrator (860) 418-6066 Wayne Siedel, Director of Service Development and Support (860) 418-6041 Corrective Action Plan as Reported by the Department of Social Services: The Department agrees with this finding and the response provided by the Department of Developmental Services. Additional research is needed to determine whether the missing documentation was the provider's responsibility or was due to a billing issue. The Department of Developmental Services is coordinating with the Department of Administrative Services to research this further. Department of Social Services Anticipated Completion Date: December 31, 2026 Department of Social Services Contact Person: Christine Weston, Program Division Director (860) 424-5012

View Audit 402418

Finding 1215822 (2025-023)

Material Weakness 2025

State of Connecticut Drinking Water Fund - State Revolving Fund

CT

Questioned Costs Cash Management § 200.403

Recommendation: The Department of Social Services should conduct an audit of the medical provider in accordance with Section 17b-99 of the Connecticut General Statutes to ensure integrity of the Money Follows the Person Rebalancing Demonstration program. The Department of Social Services should reco...

Recommendation: The Department of Social Services should conduct an audit of the medical provider in accordance with Section 17b-99 of the Connecticut General Statutes to ensure integrity of the Money Follows the Person Rebalancing Demonstration program. The Department of Social Services should recoup any improper payments issued to medical providers and refund the corresponding federal reimbursements to the Centers for Medicare and Medicaid Services. Corrective Action Plan as Reported by the Department of Social Services: The Department agrees with the finding. The improper payment has been recouped and the DSS Audit Division will open an audit of the provider. Anticipated Completion Date: December 31, 2026 Department of Social Services Contact Person: Cathie Bussolotta, Director of Internal Audit (860) 424-5548

View Audit 402418

Corrective Action Plans

Filters