Corrective Action Plans

Finding 1191085 (2025-025)

Material Weakness 2025

State of Connecticut Drinking Water Fund - State Revolving Fund

CT

Eligibility Internal Control / Segregation of Duties Procurement, Suspension & Debarment § 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 395257

Finding 1191084 (2025-024)

Material Weakness 2025

State of Connecticut Drinking Water Fund - State Revolving Fund

CT

Internal Control / Segregation of Duties Cash Management Matching / Level of Effort / Earmarking § 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 395257

Finding 1191083 (2025-023)

Material Weakness 2025

State of Connecticut Drinking Water Fund - State Revolving Fund

CT

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 395257

Finding 1191067 (2025-029)

Material Weakness 2025

State of Connecticut Drinking Water Fund - State Revolving Fund

CT

Eligibility Cash Management

Recommendation: The Department of Social Services should strengthen internal controls to ensure that each Children’s Health Insurance Program recipient is eligible for the program according to the state plan and federal regulations. Corrective Action Plan as Reported by the Department of Social Serv...

Recommendation: The Department of Social Services should strengthen internal controls to ensure that each Children’s Health Insurance Program recipient is eligible for the program according to the state plan and federal regulations. Corrective Action Plan as Reported by the Department of Social Services: The Department agrees with this finding. Condition #1: This was a processing error and was independently addressed. Condition #2: The findings were for cases that were granted prior to the implementation of the Department’s manual review process, which includes updating third-party information in the Health Insurance Exchange (HIX) system after verifying policy information. This process was officially started in May 2025. It is a post-enrollment function since it is permissible for clients to self-attest to having third-party liability (TPL) at the time of application. We expect to see a reduction in this type of error in future audits. There is an inevitable delay in DSS being notified of any discrepancies with TPL details due to the timing of that information being updated from carriers and then provided to DSS. With our new process, we can close these cases as soon as that information is available to us. Condition #3: There are multiple root causes related to this finding, including Premium Payment Module file transaction issues, reversing system functionality that was temporarily implemented during the COVID-19 Public Health Emergency which resulted in lingering enrollment issues, and staff processing errors. DSS regularly reviews age-out cases to take the necessary actions to close. 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: Dan Giacomi, Program Division Director (860) 424-5080

View Audit 395257

Finding 1190972 (2025-004)

Material Weakness 2025

State of Delaware

DE

Cash Management Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

Reference Number: 2025-004 Prior Year Finding: No Federal Agency: U.S. Department of Health and Human Services State Department Name: Department of Health and Social Services State Division: Division of Public Health Federal Program: WIC Special Supplemental Nutrition Program for Women, Infants, and...

Reference Number: 2025-004 Prior Year Finding: No Federal Agency: U.S. Department of Health and Human Services State Department Name: Department of Health and Social Services State Division: Division of Public Health Federal Program: WIC Special Supplemental Nutrition Program for Women, Infants, and Children Assistance Listing Number: 10.557 Award Number and Year: 241DE701W1003 (10/1/2023 – 9/30/2024) Compliance Requirement: Cash Management Type of Finding: Significant Deficiency in Internal Control Over Compliance Recommendation: The Division should enhance procedures and controls to ensure that drawdown requests are reviewed and approved prior to submission. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Division confirmed the drawdown transaction was accurate and appropriate. The Division reiterated the Cash Management procedure to all staff and confirmed their understanding. In addition, the Division has in place a review process for new stsaff regarding procedures with confirmation of completion. There is an established training manual which has been reviewed to ensure it contains the most update to date process. Manuals and procedures will be reviewed regularly and updated, as needed. Name(s) of the contact person(s) responsible for corrective action: Gary Owens – primary Deborah Fisher and Jennifer Heesh – backups Planned completion date for corrective action plan: March 31, 2026.

View Audit 395248

Finding 1190966 (2025-001)

Material Weakness 2025

Baylor College of Medicine

TX

Subrecipient Monitoring Cash Management § 200.303 § 200.305

2025-001 Cash Management ALN: Research and Development Cluster (R&D) - Various ALNs Finding: The College did not provide evidence of effectively designed internal controls to ensure subrecipients are paid by the College within 30 days of requests for reimbursements received by the College. Correctiv...

2025-001 Cash Management ALN: Research and Development Cluster (R&D) - Various ALNs Finding: The College did not provide evidence of effectively designed internal controls to ensure subrecipients are paid by the College within 30 days of requests for reimbursements received by the College. Corrective Action Plan: Management acknowledges that some of the payments to subrecipients selected for audit were not made within 30 days of receipt. We value the relationships with our subrecipient partners and endeavor to pay all of them timely. Substantially all subrecipient payments are made by the College within the prescribed timeline subject to the underlying transactions being properly approved. This includes the approval by principal investigators and approval of supply chain personnel after the performance of standard controls surrounding disbursements. Management will continue to identify root causes around identiﬁed delayed payments and evaluate go-forward process improvements with supply chain services, treasury and academic department personnel. Person(s) Responsible: Rob Falivene, Vice President, Supply Chain Services, and Oswaldo Ramirez, Vice President, Treasurer Expected Completion: December 2026

View Audit 395243

Finding 1190928 (2025-004)

Material Weakness 2025

Wilberforce University

OH

Cash Management Subrecipient Monitoring Reporting

COMMENT #2025-004 PROCEDURES GOVERNING THE RECONCILIATION AND MANAGEMENT OF FEDERAL PROGRAMS SHOULD BE IMPROVED. CONNECTING MINORITY COMMUNITIES PROGRAM HIGHER EDUCATION EMERGENCY RELIEF FUND HIGHER EDUCATIONAL INSTITUTIONAL AID STRENGTHENING MINORITY-SERVICING INSTITUTIONS U.S. DEPARTMENT OF EDUCAT...

COMMENT #2025-004 PROCEDURES GOVERNING THE RECONCILIATION AND MANAGEMENT OF FEDERAL PROGRAMS SHOULD BE IMPROVED. CONNECTING MINORITY COMMUNITIES PROGRAM HIGHER EDUCATION EMERGENCY RELIEF FUND HIGHER EDUCATIONAL INSTITUTIONAL AID STRENGTHENING MINORITY-SERVICING INSTITUTIONS U.S. DEPARTMENT OF EDUCATION ALN# 84.031 (B, E), 84.382G, 84.425T U.S. DEPARTMENT OF COMMERCE ALN# 11.028 (Questioned Costs –None )(Repeat) Views of Responsible Officials and Planned Corrective Actions The university will implement formal reconciliation procedures between federal financial aid systems and institutional accounting records. Reconciliation will occur between Banner, PowerFAIDS, G5 drawdown reports, and federal reporting systems including COD. These reconciliation procedures will be incorporated into the monthly financial closing process and will include review and participation from Financial Aid, the Business Office, and other appropriate administrative units. Documentation of reconciliation activity and supervisory review will be maintained to ensure compliance with federal requirements. Date to be implemented: On-going and completed by June 1, 2026. Persons responsible: Vice President of Business & Finance and Director of Financial Aid.

View Audit 395202

Finding 1190919 (2025-003)

Material Weakness 2025

Fort Scott Community College

KS

Student Financial Aid Special Tests & Provisions Cash Management

Special Tests and Provisions – Return of Title IV Funds Condition: During the testing of the return of Title IV funds, it was noted that one (1) of eight (8) tested calculation of funds to be returned had no documentation to determine if returns were completed timely as the College did not retain th...

Special Tests and Provisions – Return of Title IV Funds Condition: During the testing of the return of Title IV funds, it was noted that one (1) of eight (8) tested calculation of funds to be returned had no documentation to determine if returns were completed timely as the College did not retain the lists of students associated with drawdowns and/or returns and one (1) of eight (8) tested. Recommendation: Policies and procedures should be written to provide internal control over the documentation used to complete the drawdowns, including returns, from the Department of Education. We recommend the College establish a communication and record retention process that allows for the notification of students withdrawing and a control in place that allows the financial aid department to know that the student financial aid was returned to the Department of Education within the required timeframe. Views of responsible officials and planned corrective action: Areas of focus will be to put in place written policies and procedures for the Financial Aid office, including the area of disbursements that includes additional controls and documentation of such. Our objectives will be that all current and incoming Financial Aid staff will be required to maintain documentation of any drawdowns of funds related to student financial aid. We have put in place a shared an electronic folder with restricted access to provide confidentiality and provide documentation of the shared communication between offices. Documentation of drawdowns and/or returns will be maintained within this folder. Staff will be trained on using the daily generated reports from J1 to watch for students who have withdrawal on their records so that this can be updated and proper calculations done. Measurable targets will be achieved by documenting the records within a shared secure electronic drive between the Financial Aid Office and the Business Office. The Financial Aid Office utilizes system-generated reports to identify student withdrawals on a biweekly basis, or as needed ensuring timely processing of R2T4 calculations. The Business Office processes all returns of funds, and a specific general ledger account has been designated to track R2T4 transactions

View Audit 395201

Finding 1190918 (2025-002)

Material Weakness 2025

Fort Scott Community College

KS

Special Tests & Provisions Student Financial Aid Cash Management

Special Tests and Provisions – Payment to Students Condition: During our testing of the financial aid disbursements, it was noted the College is not maintaining records of what students the drawdowns were for, therefore we were unable to determine if the amounts were posted to the student accounts w...

Special Tests and Provisions – Payment to Students Condition: During our testing of the financial aid disbursements, it was noted the College is not maintaining records of what students the drawdowns were for, therefore we were unable to determine if the amounts were posted to the student accounts within the required time frame and subsequently were paying out any credit balances created on student accounts. Recommendation: Policies and procedures should be written to provide internal control over the documentation used to complete the drawdowns from the Department of Education. We recommend the College establish a communication and record retention process that allows for the notification of the student financial aid proceeds and a control in place that allows the financial aid department to know the student financial aid was applied to the student’s account timely. Views of responsible officials and planned corrective action: The College has established formal procedures governing the documentation, approval, and processing of financial aid drawdowns from the Department of Education. A segregated and controlled workflow has been implemented through the use of a secure shared electronic folder with restricted access to provide confidentiality and provide documentation of the shared communication between the Financial Aid office who approves the aid, the Business Office who ultimately pulls down from the Department of Education, and with the Cashier who distributes any refunds. The Financial Aid Office prepares and approves disbursement amounts and communicates them via documented reporting; the Business Office reconciles disbursement amounts to individual student accounts prior to drawdown; the CFO initiates drawdowns after documented review and approval; and the Cashier processes student refunds, where applicable. The documentation is being retained and backed up. Measurable targets will be to do this weekly or as batches are prepared for draw-down. This documentation can be found in the secure shared electronic folder, which has already been implemented. Financial aid disbursements are processed on a weekly or batch basis, and funds are applied to student accounts in compliance with federal requirements, generally within three (3) business days of receipt.

View Audit 395201

Finding 1190813 (2025-011)

Material Weakness 2025

Wheeling Jesuit University INC

WV

Cash Management § 200.305

FINDING 2025-011 Name of Responsible Individual: Lisa Simon, CPA, CFO Corrective Action: The University acknowledges that the internal controls surrounding the cash draws during fiscal year 2025 were lacking and needed to be reinforced for future fiscal years. With the hire of the new CFO and Senior...

FINDING 2025-011 Name of Responsible Individual: Lisa Simon, CPA, CFO Corrective Action: The University acknowledges that the internal controls surrounding the cash draws during fiscal year 2025 were lacking and needed to be reinforced for future fiscal years. With the hire of the new CFO and Senior Accountant post June 30, 2025 – these enhanced controls and processes have been put in place. Anticipated Completion Date: Completed Fall 2025 and Ongoing

View Audit 395082

Finding 1190792 (2025-002)

Material Weakness 2025

Wheeling Jesuit University INC

WV

Cash Management Student Financial Aid Internal Control / Segregation of Duties

FINDING 2025-002 Name of Responsible Individual: Terri Helt, Senior Accountant Corrective Action: The University has formalized and documented financial processes to establish internal controls to ensure accurate, timely, and consistent reporting. In addition, this has created a reasonable transitio...

FINDING 2025-002 Name of Responsible Individual: Terri Helt, Senior Accountant Corrective Action: The University has formalized and documented financial processes to establish internal controls to ensure accurate, timely, and consistent reporting. In addition, this has created a reasonable transition plan during employee turnover, as well as ensures proper and timely filings. The corrective action involves drawing down the funds from the G5 federal website and issuing refunds to students that day. There is a checks and balance process built in, so multiple staff members are involved with the process. The financial aid department calculates the amount of a federal drawdown and relays that information to the business department. The senior accountant draws the appropriate amount of federal financial aid. The student accounts billing coordinator applies aid to the various student accounts in the software. After the aid has been applied, the student accounts billing coordinator determines if a refund is due to the students. Any student that is entitled to a refund will be cut for a refund check that day. The students will then have a window of opportunity to come pick up the refund checks. Within two business days, any students who have not picked up their refund checks will have them mailed to their address on file with the University. This process has been developed to ensure that students receive their refunds in a timely and accurate manner. Anticipated Completion Date: Completed July 2025 and Ongoing

View Audit 395082

Finding 1190776 (2025-003)

Material Weakness 2025

Prairie Inn Corporation

ND

Cash Management HUD Housing Programs Significant Deficiency

Federal Agency Name: Program Name: Finding Summary: Corrective Action Plan: Responsible Individual: Department of Housing and Urban Development Supportive Housing for Persons with Disabilities Federal Assistance Listing #14.181 The Corporation did not deposit project funds in a federally insured acc...

Federal Agency Name: Program Name: Finding Summary: Corrective Action Plan: Responsible Individual: Department of Housing and Urban Development Supportive Housing for Persons with Disabilities Federal Assistance Listing #14.181 The Corporation did not deposit project funds in a federally insured account within 60 days of the fiscal year end. The Corporation did not have the deposit amount determined timely enough to have the project funds deposited within 60 days of the fiscal year end. We will implement controls to ensure the required amount of project fund are deposited within 60 days following the end of the fiscal year. Josh Plecity, Finance Director Anticipated Completion Date: 12/31/2026

View Audit 395076

Finding 1190742 (2025-003)

Material Weakness 2025

City of Garden City, Michigan

MI

Cash Management Internal Control / Segregation of Duties Subrecipient Monitoring

Condition: For the year ended June 30, 2025, the City did not submit quarterly reports to EGLE as required by the grant agreement. The City submitted drawdown/reimbursement documentation only when expenditures were incurred, but quarterly reporting deliverables to EGLE were not completed for each qu...

Condition: For the year ended June 30, 2025, the City did not submit quarterly reports to EGLE as required by the grant agreement. The City submitted drawdown/reimbursement documentation only when expenditures were incurred, but quarterly reporting deliverables to EGLE were not completed for each quarter during the fiscal year. Planned Corrective Action: To address this deficiency, the City will implement enhanced internal oversight procedures, assign responsibility for monitoring compliance, and improve communication and coordination with the third-party administrator to ensure all required reports are completed and submitted timely. Contact person responsible for corrective action: Shannon Shepard, Treasurer/Finance Director Anticipated Completion Date: 6/30/2026

View Audit 394962

Finding 1187285 (2025-002)

Material Weakness 2025

University of La Verne

CA

Cash Management Student Financial Aid

FINDING 2025-002 – Special Tests and Provisions – Cash Management: Significant Deficiency in Internal Control over Compliance (See table in "Management's Corrective Action Plan"). Condition/Context – The University made 48 draws for various student financial assistance cluster programs. Auditors sel...

FINDING 2025-002 – Special Tests and Provisions – Cash Management: Significant Deficiency in Internal Control over Compliance (See table in "Management's Corrective Action Plan"). Condition/Context – The University made 48 draws for various student financial assistance cluster programs. Auditors selected a sample of 7 and believe this to be a representative sample; however, it was not a statistical sample; Corrective Action Plan: This was done due to the perceived understanding that the new Federal Administration indicated that all grants were at risk of being cancelled and that the G5 website would go dark. Due to the unique nature of the Federal Administration’s perceived announcement, the University would not handle this in the same manner, in the future. If for some reason they were to cancel any future grants, the University would endure the cancellation and close out the grant in the usual process, which is by reimbursement only. Name of Contact Person: Lori Gordien Case, Associate Vice President of Finance and Controller at lgordien@laverne.edu Projected Completion Date: This was corrected as of March 31, 2025.

View Audit 394918

Finding 1187261 (2025-003)

Material Weakness 2025

Fremont County Association of Governments

WY

Cash Management Significant Deficiency

Finding 2025‐003 Reimbursement Request Approval Documentation ‐ Significant Deficiency Management Response: The Association acknowledges this finding and agrees that reimbursement request files should contain clearer documentation evidencing the preparation and approval process required under intern...

Finding 2025‐003 Reimbursement Request Approval Documentation ‐ Significant Deficiency Management Response: The Association acknowledges this finding and agrees that reimbursement request files should contain clearer documentation evidencing the preparation and approval process required under internal policy. Although reimbursement requests were prepared and submitted as part of routine grant administration, the supporting documentation did not consistently reflect the full preparation trail and approval record expected for audit purposes. Management has already identified the need to formalize this process and will implement a standardized reimbursement request file structure for all future reimbursement submissions. This process will include documentation showing who prepared the request, the date of preparation, the review and approval path, and the supporting expenditure records associated with the reimbursement period. Where applicable, the Association will incorporate a formal checklist or cover sheet to ensure each request file demonstrates compliance with internal procedures and grant requirements. Management does not believe the issue resulted from intentional noncompliance, but rather from inadequate documentation of a process that had been operationally performed. Even so, management agrees that documentation standards must be improved to reduce risk and strengthen compliance controls over federal reimbursement activity. The Association is committed to implementing this corrective action immediately for all future reimbursement requests to ensure that preparation and approval procedures are clearly evidenced and consistently retained. The draft audit notes that the comparable prior-year federal finding appears to be resolved, and management intends to similarly resolve this finding through standardized documentation and retention procedures. Responsible Official: Director / Business Manager Planned Corrective Action Date: Immediately for all reimbursement requests submitted after audit issuance

View Audit 394868

Finding 1187212 (2025-061)

Material Weakness 2025

State of Maine

ME

Special Tests & Provisions Cash Management Material Weakness § 200.303

Department: Health and Human Services Title: Internal control over Medicaid Nursing Facility audits needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Director and Deputy director will meet biweekly to review the audit assignments and discuss the st...

Department: Health and Human Services Title: Internal control over Medicaid Nursing Facility audits needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Director and Deputy director will meet biweekly to review the audit assignments and discuss the status of the nursing facility audits. The Division of Audit management team will actively recruit for the ten vacant audit positions. The Deputy Director will adjust the audit procedures for the Nursing Facilities to limit the testing to just capital costs starting with the December 31, 2025, cost reports. The Department has assigned four of the seven current staff auditors to nursing facility audits. Completion Date: Ongoing (first and fourth items), June 30, 2026 (second item), and May 31, 2026 (third item) Agency Contact: Herb Downs, Director, Division of Audit, DHHS, 207-287-2403

View Audit 394838

Finding 1187208 (2025-058)

Material Weakness 2025

State of Maine

ME

Cash Management Internal Control / Segregation of Duties Student Financial Aid § 200.302 § 200.303

Department: Health and Human Services Administrative and Financial Services Title: Internal control over Foster Care and Adoption Assistance cash management needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The DHHS Financial Service Center will update...

Department: Health and Human Services Administrative and Financial Services Title: Internal control over Foster Care and Adoption Assistance cash management needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The DHHS Financial Service Center will update the IV-E cash on hand analysis to ensure the cash balances are tracked separately by each of the following Title IV-E programs: Foster Care, Adoption Assistance, Prevention Program and Guardianship Assistance. Completion Date: March 31, 2026 Agency Contact: Sarah Gove, Director, DHHS Service Center, DAFS, 207-458-6626

View Audit 394838

Finding 1187203 (2025-056)

Material Weakness 2025

State of Maine

ME

Internal Control / Segregation of Duties Special Tests & Provisions Student Financial Aid § 200.303

Department: Health and Human Services Title: Internal control over Foster Care level of care assessments needs improvement Questioned Costs: Known: $3,003 Likely: Undeterminable Status: Corrective action in progress Corrective Action: The Department will submit Katahdin system enhancements and Level...

Department: Health and Human Services Title: Internal control over Foster Care level of care assessments needs improvement Questioned Costs: Known: $3,003 Likely: Undeterminable Status: Corrective action in progress Corrective Action: The Department will submit Katahdin system enhancements and Levels of Care (LOC) report updates, to shorten timeframes, and schedule LOC assessments earlier, in order to meet 90-day and 12-month deadlines. The Department will work with vendors to shorten timeframes, to ensure assessments are completed timely. The Department will date and finalize Policy draft for Levels of Care for Resource Homes Chapter 14 with the Policy and Training unit. Completion Date: Jun 30, 2026 (first and second items) and December 31, 2026 (third item) Agency Contact: Robert Blanchard, Associate Director, OCFS, DHHS, 207-624-7955

View Audit 394838

Finding 1187198 (2025-053)

Material Weakness 2025

State of Maine

ME

Cash Management Subrecipient Monitoring Internal Control / Segregation of Duties § 200.303 § 200.305

Department: Health and Human Services Title: Internal control over CCDF subrecipient cash management needs improvement Questioned Costs: None Status: Management’s opinion is that corrective action is not required Corrective Action: The Department disagrees with this finding. The Department is in com...

Department: Health and Human Services Title: Internal control over CCDF subrecipient cash management needs improvement Questioned Costs: None Status: Management’s opinion is that corrective action is not required Corrective Action: The Department disagrees with this finding. The Department is in compliance with the requirement for minimizing the time between payments to our subrecipients and the disbursement of the funds. Payments are made as close as is administratively feasible. The Compliance Supplement suggested audit procedures for Cash Management for pass-through entities refers to 200.305(b)(1) ... that same paragraph states that the timing and amount of advance payments must be as close as is administratively feasible. Completion Date: N/A Agency Contact: Tara Williams, Associate Director of Early Care & Education, DHHS, 207-557-2342

View Audit 394838

Finding 1187188 (2025-048)

Material Weakness 2025

State of Maine

ME

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.302 § 200.303

Department: Health and Human Services Administrative and Financial Services Judicial Branch Title: Internal control over Child Support Services expenditures needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The DHHS and the Maine Judicial Branch will u...

Department: Health and Human Services Administrative and Financial Services Judicial Branch Title: Internal control over Child Support Services expenditures needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The DHHS and the Maine Judicial Branch will update the Cooperative Agreement to strengthen policies, procedures, and oversight in order to ensure that expenditures are based on actual costs. Completion Date: March 31, 2026 Agency Contact: Jerry Joy, Director, Division of Support Enforcement and Recovery, DHHS, 207- 624-6985

View Audit 394838

Finding 1187180 (2025-040)

Material Weakness 2025

State of Maine

ME

Cash Management Subrecipient Monitoring Internal Control / Segregation of Duties § 200.303 § 200.305

Department: Health and Human Services Title: Internal control over PDG subrecipient cash management needs improvement Questioned Costs: None Status: Management’s opinion is that corrective action is not required Corrective Action: The Department disagrees with this finding. The Department is in comp...

Department: Health and Human Services Title: Internal control over PDG subrecipient cash management needs improvement Questioned Costs: None Status: Management’s opinion is that corrective action is not required Corrective Action: The Department disagrees with this finding. The Department is in compliance with the requirement for minimizing the time between payments to our subrecipients and the disbursement of the funds. Payments are made as close as is administratively feasible. The Compliance Supplement suggested audit procedures for Cash Management for pass-through entities refers to 200.305(b)(1) ... that same paragraph states that the timing and amount of advance payments must be as close as is administratively feasible. Completion Date: N/A Agency Contact: Tara Williams, Associate Director of Early Care & Education, DHHS, 207-557-2342

View Audit 394838

Finding 1187175 (2025-034)

Material Weakness 2025

State of Maine

ME

Cash Management Subrecipient Monitoring Internal Control / Segregation of Duties § 200.303 § 200.305

Department: Health and Human Services Title: Internal control over Health Disparities program subrecipient cash management needs improvement Questioned Costs: None Status: Management’s opinion is that corrective action is not required Corrective Action: The Department disagrees with this finding. Th...

Department: Health and Human Services Title: Internal control over Health Disparities program subrecipient cash management needs improvement Questioned Costs: None Status: Management’s opinion is that corrective action is not required Corrective Action: The Department disagrees with this finding. The Department is in compliance with the requirement for minimizing the time between payments to our subrecipients and the disbursement of the funds. Payments are made as close as is administratively feasible. The Compliance Supplement suggested audit procedures for Cash Management for pass-through entities refers to 200.305(b)(1) ... that same paragraph states that the timing and amount of advance payments must be as close as is administratively feasible. Completion Date: N/A Agency Contact: Eden Hale, Associate Director, Division of Population Health Equity, Maine CDC, 207-441-1090

View Audit 394838

Finding 1187172 (2025-031)

Material Weakness 2025

State of Maine

ME

Cash Management Subrecipient Monitoring Internal Control / Segregation of Duties § 200.303

Department: Administrative and Financial Services Health and Human Services Public Safety Title: Internal control over Health Disparities program cash management needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: Department of Health and Human Services ...

Department: Administrative and Financial Services Health and Human Services Public Safety Title: Internal control over Health Disparities program cash management needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: Department of Health and Human Services (DHHS): A revised MOU between the Maine CDC and the Department of Public Safety was completed to include the terms for reimbursement of grant funds to govern inter-departmental transfers of funds and ensure the timely processing of invoices. Department of Public Safety (DPS): The Department of Public Safety will draft a policy with clear timelines associated with the processing of invoices. The policy will be distributed to all Bureau Directors who will then share the policy internally within their respective bureaus. The MaineEMS Bureau will draft procedures for invoice processing which will be part of the onboarding process for all new employees within the bureau. Completion Date: DHHS: August 1, 2025 DPS: April 1, 2026 (first and second items), and April 15, 2026 (third item) Agency Contact: DHHS: Eden Hale, Associate Director, Division of Population Health Equity, Maine CDC, 207-441-1090 DPS: Derek Gorneau, Assistant to the Commissioner, DPS, 207-530-3531

View Audit 394838

Finding 1187168 (2025-028)

Material Weakness 2025

State of Maine

ME

Cash Management Internal Control / Segregation of Duties Subrecipient Monitoring § 200.302 § 200.303

Department: Defense, Veterans and Emergency Management Title: Internal control over National Guard cash management and the related financial reporting needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department will improve policies and procedures...

Department: Defense, Veterans and Emergency Management Title: Internal control over National Guard cash management and the related financial reporting needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department will improve policies and procedures to follow up on outstanding reimbursement requests to facilitate a more timely reimbursements from the Federal government. The Department will improve policies and procedures, including reconciling reimbursement activity to the State’s accounting system. The Department will improve and maintain effective internal control over Federal awards to provide reasonable assurance that the Department is managing awards in compliance with federal statutes, regulations and the terms and conditions of awards. The Department will review, update and document supervisory oversight. Completion Date: June 30, 2026 (first, second and third items), and May 30, 2026 (fourth item) Agency Contact: Diane Dunn, Commissioner, DVEM, 207- 430-5158

View Audit 394838

Finding 1187058 (2025-001)

Material Weakness 2025

Housing Authority of the City of Waterbury

CT

HUD Housing Programs Cash Management

2025-001 Federal Ward Findings and Questioned Costs Material Noncompliance/Material Weakness ALN: 14.872 Public Housing Capital Fund Finding summary: The Authority recorded unearned revenue related to the Capital Fund drawdowns for operations on the Central Office Cost Center. This amount should hav...

2025-001 Federal Ward Findings and Questioned Costs Material Noncompliance/Material Weakness ALN: 14.872 Public Housing Capital Fund Finding summary: The Authority recorded unearned revenue related to the Capital Fund drawdowns for operations on the Central Office Cost Center. This amount should have been reflected as revenue on the public housing programs. Statement of Concurrence: The Authority agrees with the finding. Corrective Action Plan: The Authority did not spend capital fund draw downs on the COCC program. The Authority’s practice was to record drawdowns as deferred revenue on COCC until they were spent and at that time moved the expenditures to the public housing programs. Going forward the Authority will record the drawdowns as revenue for the public housing programs when they are drawn down. Effective immediately, the Comptroller, Jennifer Yager, will implement this policy. Jennifer can be reached at 203-596-2640 and Jennifer.yager@waterburyha.org.

View Audit 394748

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