Corrective Action Plans

Finding 1213503 (2025-001)

Material Weakness 2025

WA

Eligibility Significant Deficiency Internal Control / Segregation of Duties

Finding 2025-001 – Eligibility (Significant Deficiency in Internal Control Over Compliance and Instance of Noncompliance) Planned Corrective Action: The Seattle Indian Health Board is implementing enhanced corrective actions to ensure full compliance with Indian Health Service eligibility requiremen...

Finding 2025-001 – Eligibility (Significant Deficiency in Internal Control Over Compliance and Instance of Noncompliance) Planned Corrective Action: The Seattle Indian Health Board is implementing enhanced corrective actions to ensure full compliance with Indian Health Service eligibility requirements, specifically related to documentation of Tribal enrollment. While prior corrective actions established foundational training and audit processes, management has identified the need for stronger front-end controls, clearer accountability, and system-based safeguards to prevent recurrence. Seattle Indian Health Board will implement the following actions: 1. Strengthen Front-End Eligibility Controls - Eligibility verification protocols will be updated to require complete Tribal enrollment documentation prior to scheduling non-urgent appointments. - A standardized eligibility checklist will be embedded into intake workflows to ensure all required documentation is identified and collected before services are rendered. 2. System Enhancement and Documentation Tracking - Electronic health record workflows will be enhanced to include required fields and alters for missing eligibility documentation, including Tribal enrollment. - Patients with incomplete eligibility records will be flagged, and services will be limited to allowable scenarios until documentation is obtained. 3. Targeted Training and Competency Validation - All registration and front desk staff will undergo mandatory retraining focused specifically on Tribal enrollment documentation requirements and compliance standards. - Staff competency will be validated through post-training assessments and periodic spot checks. 4. Enhanced Monitoring and Internal Audit - Monthly eligibility audits will be expanded to include a statistically valid sample size and documented review of Tribal enrollment verification. - Audit results will be formally reported to executive leadership, with identified deficiencies tracked through resolution. - Repeat errors or noncompliance will be addressed through corrective coaching and performance management, as appropriate. Management believes these enhanced corrective actions directly address the root cause of the finding by strengthening preventive controls, improving staff competency, and increasing oversight and accountability. Name of Responsible Party: Tempest Dawson, Director of Clinic Operations Anticipated Completion Date: December 31, 2026.

View Audit 400452

Finding 1211025 (2025-001)

Material Weakness 2025

Housing Authority of New Orleans

LA

HUD Housing Programs Eligibility

The Housing Authority of New Orleans (HANO) acknowledges the deficiencies identified in the audit related to tenant eligibility documentation, Housing Assistance Payment (HAP) calculations, and file accessibility during the transition to digital records. HANO will correct the deficiencies noted in t...

The Housing Authority of New Orleans (HANO) acknowledges the deficiencies identified in the audit related to tenant eligibility documentation, Housing Assistance Payment (HAP) calculations, and file accessibility during the transition to digital records. HANO will correct the deficiencies noted in the sampled files, including completing overdue recertifications, obtaining required HUD forms and identification documentation, securing proper third-party income verification, and recalculating HAP amounts where necessary. The Authority will also conduct an expanded internal review of additional tenant files to determine whether similar issues exist and will correct any deficiencies identified. To prevent recurrence, HANO has initiated formal staff training to reinforce compliance with HUD eligibility requirements, documentation standards, and proper HAP calculation procedures. Training began on March 19, 2026, and is being conducted by Circular Consulting LLC, a thirdparty firm with expertise in Housing Choice Voucher program compliance and operations. This training will continue through September 2026 to ensure staff receive comprehensive instruction and reinforcement of HUD program requirements. In addition, HANO will strengthen internal controls by implementing additional quality control (QC) reviews of tenant files and recertifications, including supervisory review of eligibility documentation and HAP calculations to ensure accuracy and completeness. These enhanced QC monitoring procedures will begin on April 20, 2026, and will be conducted on an ongoing basis to ensure errors are identified and corrected promptly. The Authority will also reconcile physical and digital tenant records to ensure that all files are properly digitized, complete, and accessible following the transition to electronic records. Responsible Party: Sonja Young, Director Implementation Timeline: Start Date: March 30, 2026 Completion Date: May 18, 2026

View Audit 400305

Finding 1211022 (2025-002)

Material Weakness 2025

School Nutrition Prog of the Archdiocese of La Education & Welfare Cor

CA

Internal Control / Segregation of Duties Eligibility § 200.302 § 200.333

Recommendation: We recommend the SNP reviews its internal controls and policies to ensure all students receiving benefits have an application, or other supporting documentation, on file to support their eligibility. Action taken in response to finding: Management acknowledges the finding and will re...

Recommendation: We recommend the SNP reviews its internal controls and policies to ensure all students receiving benefits have an application, or other supporting documentation, on file to support their eligibility. Action taken in response to finding: Management acknowledges the finding and will revise and formalize internal controls as follows: • Eligibility Documentation Procedures: Develop a standardized checklist to confirm required documentation is obtained, reviewed and retained prior to approval. • Centralize Review and Approval Process: A designated reviewer will be responsible for verifying completeness and accuracy of all eligibility determinations. Approval will be formally documented. • Record Retention Controls: Management will establish controls to ensure that all eligibility documentation is: Properly maintained, readily accessible for audit or review and retained in accordance with federal, state and organization-wide policy. • Personnel Training: Training will be conducted annually and upon onboarding new personnel. Name of the contact person responsible for corrective action: Sean Jernigan, Chief of Operational Vitality, Department of Catholic Schools, Archdiocese of Los Angeles Planned completion date for corrective action plan: • Procedure and checklist implementation: Within 30 days of financial statement issuance • Staff training: Within 60 days of financial statement issuance • Full implementation and evidence of operation: 90 days of financial statement issuance

View Audit 400300

Finding 1210926 (2025-001)

Material Weakness 2025

Sojourners Care Network

OH

Internal Control / Segregation of Duties Eligibility Reporting

Management will implement procedures to ensure timely submission of all required federal reports by establishing a centralized grants compliance calendar with automated deadline reminders, assigning both primary and backup personnel responsible for report preparation and submission, and requiring su...

Management will implement procedures to ensure timely submission of all required federal reports by establishing a centralized grants compliance calendar with automated deadline reminders, assigning both primary and backup personnel responsible for report preparation and submission, and requiring supervisory review and approval prior to filing. Management will monitor reporting deadlines monthly to ensure compliance.

View Audit 400253

Finding 1210903 (2025-001)

Material Weakness 2025

Pine Tree Legal Assistance, Inc.

ME

Eligibility

Pine Tree holds biannual mandatory staff trainings on the LSC regulations, which include a review of the requirements for retainers and citizenship attestations. In the summer of 2025, the trainings consisted of a series of short videos that are now saved to our Training Library and available to new...

Pine Tree holds biannual mandatory staff trainings on the LSC regulations, which include a review of the requirements for retainers and citizenship attestations. In the summer of 2025, the trainings consisted of a series of short videos that are now saved to our Training Library and available to new staff. We have processes in place to obtain the required documents on paper or electronically. We are currently in the process of finalizing a new DocAssemble process that will make it easier for staff to obtain electronic retainers. Pine Tree continues to prioritize compliance with these rules. We will continue to work on policies and procedures, and stay up to date on technological advances, that can help us overcome the factors that lead to occasions in which clients do not return the documents that Pine Tree provided for their review and completion. These factors can include the time-sensitive nature of our work, clients’ inability to meet in person, the large geographic size of our service area, and some clients’ significant mental health issues that limit their capacity to complete paperwork. We will continue to evaluate the barriers, and systematic solutions to reduce these barriers. The anticipated completion date for this corrective action is September 1, 2026. Local office trainings are being scheduled for May and June which will include reminders about these requirements. The new electronic retainer process should be finalized by the end of August. The other

View Audit 400244

Finding 1210881 (2025-001)

Material Weakness 2025

Senior Citizens Housing Development Corporation of South Boston, Inc.

FL

HUD Housing Programs Eligibility Reporting

Oversight Agency for Audit, Senior Citizens Housing Development Corporation of South Boston, Inc. respectfully submits the following corrective action plan for the year ended December 31, 2025. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive,...

Oversight Agency for Audit, Senior Citizens Housing Development Corporation of South Boston, Inc. respectfully submits the following corrective action plan for the year ended December 31, 2025. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 201, Coral Springs, Florida 33067. Audit period: January 1, 2025 through December 31, 2025 The findings from the December 31, 2025 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the number in the schedule. SECTION III - FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT FINDING No. 2025-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Recommendation: The Project should implement procedures to ensure that all initial and ongoing tenant eligibility documentation is obtained timely and maintained in tenant files as required by HUD. Action Taken: Staff training has been provided with additional HUD training inclusive of EIV reporting and tenant file maintenance and included in monthly reporting procedures.

View Audit 400222

Finding 1210790 (2025-001)

Material Weakness 2025

Legal Services of Northern California, Inc.

CA

Eligibility Significant Deficiency Internal Control / Segregation of Duties

In order to avoid recurrence of such errors in future years, LSNC is implementing a checklist for integrity reports (a draft of which is attached to this memo) and a mid-year programwide integrity report process to identify and correct errors. The checklist of integrity reports will be used and reta...

In order to avoid recurrence of such errors in future years, LSNC is implementing a checklist for integrity reports (a draft of which is attached to this memo) and a mid-year programwide integrity report process to identify and correct errors. The checklist of integrity reports will be used and retained by the executive assistant and the interim executive director to verify that all necessary reports are run and reviewed twice each year. A copy of each report will be retained with the checklist as an additional verification measure. The mid-year review will occur in June or July and will include income and asset eligibility checks on closed cases - using a report of all closed cases that shows the household composition, asset amount and the LSC eligibility selection for each case. The interim executive director and the executive assistant responsible for programwide integrity reports will both review the report and examine any cases that exceed the asset limit for the case household size. Ineligible cases will be corrected to indicate they are not LSC-eligible, meaning that they will not be reported. If LSC funds were used to support the case, those time entries will be changed to charge appropriate funds and staff will prepare revised timesheets. The same review will be repeated at the end of the calendar year, before case data is reported to LSC (and prior to the self-inspection process). This additional review should further strengthen the processes already in place. This process is not time limited. It will be added to LSNC's regular compliance activities. If you have any questions or concerns about LSNC's proposed plan, please contact me at (916) 551-2179 or via email at jaguilar@lsnc.net.

View Audit 400082

Finding 1210789 (2025-001)

Material Weakness 2025

Wyoming Housing Network, Inc. and Subsidiaries

WY

Subrecipient Monitoring Eligibility Matching / Level of Effort / Earmarking

Finding #2025-001 Comments on the Finding and Each Recommendation: During the year ended September 30, 2025, three of the thirteen resident files selected for testing under the OMB Compliance Supplement lacked properly executed and documented resident eligibility forms. WHN Property Management shoul...

Finding #2025-001 Comments on the Finding and Each Recommendation: During the year ended September 30, 2025, three of the thirteen resident files selected for testing under the OMB Compliance Supplement lacked properly executed and documented resident eligibility forms. WHN Property Management should complete recertifications for the two residents still residing at the Property, ensure that all resident files are maintained at the site for each resident of the Property, and ensure that the resident files include all properly executed and documented resident eligibility forms. Action(s) taken or planned on the finding: WHN Property Management concurs with the finding and recommendation. WHN Property Management is in the process of completing recertifications for two of the residents still residing at the Property. One of the resident files noted in the statement of condition was for a resident who moved out of the Property in November 2025. No further action is required related to this resident's file. WHN Property Management intends to review and update, as necessary, the other resident files during the year ended September 30, 2026 to ensure the Property is in compliance with the OMB Compliance Supplement and the HOME loan agreement.

View Audit 400081

Finding 1210713 (2025-002)

Material Weakness 2025

Legal Aid Chicago

IL

Eligibility Significant Deficiency Internal Control / Segregation of Duties

Recommendation: We recommend that management implement a control to ensure complete documentation is maintained for all cases that require retainer agreement. Explanation of disagreement with audit finding: There is no disagreement with this finding. Action taken in response to finding: Legal Aid Ch...

Recommendation: We recommend that management implement a control to ensure complete documentation is maintained for all cases that require retainer agreement. Explanation of disagreement with audit finding: There is no disagreement with this finding. Action taken in response to finding: Legal Aid Chicago's Deputy Director/General Counsel has already contacted the employees who made the errors with respect to missing retainers and has included their supervisors in the communication to ensure compliance on a forward-looking basis. The Deputy Director/General Counsel will also hold a compliance training for staff covering LSC regulations by the end of Q3 2026. Name of the contact person responsible for corrective action: Teresa Sullivan, Deputy Director / General Counsel Planned completion date for corrective action plan: September 30, 2026

View Audit 400007

Finding 1210707 (2025-001)

Material Weakness 2025

Legal Aid Chicago

IL

Eligibility Significant Deficiency Internal Control / Segregation of Duties

Recommendation: We recommend that management implement a control to review PAI time entries to ensure they are accurate. Explanation of disagreement with audit finding: There is no disagreement with this finding. Action taken in response to finding: While issues with PAI time for non-case activity w...

Recommendation: We recommend that management implement a control to review PAI time entries to ensure they are accurate. Explanation of disagreement with audit finding: There is no disagreement with this finding. Action taken in response to finding: While issues with PAI time for non-case activity were successfully remediated with the implementation of a required drop-down activity description field in the LegalServer case management system, the two erroneous entries in 2025 involved case time and resulted from cases that were opened as PAI “Yes” due to the intake occurring at a volunteer clinic and the expectation of volunteer attorney involvement that did not ultimately occur. Legal Aid Chicago's Deputy Director/General Counsel has already contacted the employees who made the errors with respect to PAI time and has included their supervisors in the communication to ensure compliance on a forward-looking basis. The Deputy Director/General Counsel will also hold a compliance training for staff covering LSC regulations by the end of Q3 2026. Name of the contact person responsible for corrective action: Teresa Sullivan, Deputy Director / General Counsel Planned completion date for corrective action plan: September 30, 2026

View Audit 400007

Finding 1208848 (2025-001)

Material Weakness 2025

Asian Pacific Health Care Venture, INC

CA

Special Tests & Provisions Eligibility

Corrective Action: The Center will: - Provide immediate re-training to staff on issues identified, and - Continue to provide ongoing training to current and new staff involved in Sliding Fee Discount Program (SFDP) on program requirements and proper implementation of sliding fee determination and bi...

Corrective Action: The Center will: - Provide immediate re-training to staff on issues identified, and - Continue to provide ongoing training to current and new staff involved in Sliding Fee Discount Program (SFDP) on program requirements and proper implementation of sliding fee determination and billing, and - Have updated procedures for the Sliding Fee Discount Program approval process in which all sliding fee required documents are reviewed and approved by a Clinic Manager or his/her designee for program compliance within 3-5 business days. Revise SFDP application form to add the space where Clinic Manager or designee can document the reviewed by and date of approval, and - Continue ongoing SFDP Chart Audits to assess compliance with policy and guidelines, staff knowledge, and provide feedback, as needed.

View Audit 399803

Finding 1208789 (2025-003)

Material Weakness 2025

Stevensville Public Schools

MT

Subrecipient Monitoring Eligibility Internal Control / Segregation of Duties

FINDING 2025-003: Title I Eligibility Response: To ensure all records are correctly filed and maintained, the district is establishing new protocols for documenting Title eligibility.

View Audit 399626

Finding 1208784 (2025-001)

Material Weakness 2025

Riverview Apartments Senior Housing

MN

Eligibility HUD Housing Programs Material Weakness

Corrective Action: The Organization agrees with the finding and has continued to implement strategies to address the finding. To address this finding, ownership has moved its portfolio, with the exception of one project, to third party property managers as of January 1, 2026. These agents have a tra...

Corrective Action: The Organization agrees with the finding and has continued to implement strategies to address the finding. To address this finding, ownership has moved its portfolio, with the exception of one project, to third party property managers as of January 1, 2026. These agents have a track record of completing certifications on time and in accordance with applicable regulations. Ownership periodically reviews the agent's procedures to ensure that they complete tenant files on time and have routine internal audits of tenant files to ensure compliance with HUD regulations. Proposed completion date: Management has begun the corrective action and is expected to have additional internal controls in place by December 31, 2026. Name of contact person: Jennifer Anderson, Chief Financial and Operating Officer

View Audit 399612

Finding 1208781 (2025-001)

Material Weakness 2025

Garden Terrace Commons Senior Housing 092-Ee078

MN

Eligibility HUD Housing Programs Material Weakness

Corrective Action: The Organization agrees with the finding and has continued to implement strategies to address the finding. To address this finding, ownership has moved its portfolio, with the exception of one project, to third party property managers as of January 1, 2026. These agents have a tra...

Corrective Action: The Organization agrees with the finding and has continued to implement strategies to address the finding. To address this finding, ownership has moved its portfolio, with the exception of one project, to third party property managers as of January 1, 2026. These agents have a track record of completing certifications on time and in accordance with applicable regulations. Ownership periodically reviews the agents' procedures to ensure that they complete tenant files on time and have routine internal audits of tenant files to ensure compliance with HUD regulations. Proposed completion date: Management has begun the corrective action and is expected to have additional internal controls in place by December 31, 2026. Name of contact person: Jennifer Anderson , Chief Financial and Operating Officer.

View Audit 399608

Finding 1208780 (2025-002)

Material Weakness 2025

Community for Affordable Senior Housing, Inc.

MN

Eligibility HUD Housing Programs Material Weakness

Corrective Action: The Organization agrees with the finding. To address this finding, ownership has moved its portfolio, with the exception of one project, to third party managers as of January 1, 2026. These agents have a track record of completing, documenting, and retaining certifications in acco...

Corrective Action: The Organization agrees with the finding. To address this finding, ownership has moved its portfolio, with the exception of one project, to third party managers as of January 1, 2026. These agents have a track record of completing, documenting, and retaining certifications in accordance with applicable regulations. Ownership periodically reviews the agents' procedures to ensure that they document and maintain tenant files in accordance with HUD and have routine internal audits of tenant files to ensure compliance with HUD regulations. Proposed completion date: Management has begun the corrective action and is expected to have additional internal controls in place by December 31, 2026. Name of contact person: Jennifer Anderson, Chief Financial and Operating Officer

View Audit 399606

Finding 1208779 (2025-001)

Material Weakness 2025

Community for Affordable Senior Housing, Inc.

MN

Eligibility HUD Housing Programs Material Weakness

Corrective Action: The Organization agrees with the finding and has continued to implement strategies to address the finding. To address this finding, ownership has moved its portfolio, with the exception of one project, to third party property managers as of January 1, 2026. These agents have a tra...

Corrective Action: The Organization agrees with the finding and has continued to implement strategies to address the finding. To address this finding, ownership has moved its portfolio, with the exception of one project, to third party property managers as of January 1, 2026. These agents have a track record of completing certifications on time and in accordance with applicable regulations. Ownership periodically reviews the agents' procedures to ensure that they complete tenant files on time and have routine internal audits of tenant files to ensure compliance with HUD regulations. Proposed completion date: Management has begun the corrective action and is expected to have additional internal controls in place by December 31, 2026. Name of contact person: Jennifer Anderson , Chief Financial and Operating Officer.

View Audit 399606

Finding 1208778 (2025-002)

Material Weakness 2025

Bassett Creek Senior Housing 092-Ee037

MN

Eligibility HUD Housing Programs Material Weakness

Corrective Action: The Organization agrees with the finding. To address this finding, ownership has moved its portfolio, with the exception of one project, to third party property managers as of January 1, 2026. These agents have a track record of completing, documenting, and retaining certification...

Corrective Action: The Organization agrees with the finding. To address this finding, ownership has moved its portfolio, with the exception of one project, to third party property managers as of January 1, 2026. These agents have a track record of completing, documenting, and retaining certifications in accordance with applicable regulations. Ownership periodically reviews the agents' procedures to ensure that they document and maintain tenant files in accordance with HUD and have routine internal audits of tenant files to ensure compliance with HUD regulations. Proposed completion date: Management has begun the corrective action and is expected to have additional internal controls in place by December 31, 2026. Name of contact person: Jennifer Anderson, Chief Financial and Operating Officer

View Audit 399604

Finding 1208777 (2025-001)

Material Weakness 2025

Bassett Creek Senior Housing 092-Ee037

MN

Eligibility HUD Housing Programs Material Weakness

Corrective Action: The Organization agrees with the finding and has continued to implement strategies to address the finding. To address this finding, ownership has moved its portfolio, with the exception of one project, to third party property managers as of January 1, 2026. These agents have a tra...

Corrective Action: The Organization agrees with the finding and has continued to implement strategies to address the finding. To address this finding, ownership has moved its portfolio, with the exception of one project, to third party property managers as of January 1, 2026. These agents have a track record of completing certifications on time and in accordance with applicable regulations. Ownership periodically reviews the agent's procedures to ensure that they complete tenant files on time and have routine internal audits of tenant files to ensure compliance with HUD regulations. Proposed completion date: Management has begun the corrective action and is expected to have additional internal controls in place by December 31, 2026. Name of contact person: Jennifer Anderson, Chief Financial and Operating Officer

View Audit 399604

Finding 1208571 (2025-084)

Material Weakness 2025

State of Alaska

AK

Eligibility Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

Finding: 2025-084 - The University did not properly maintain documentation to demonstrate a student’s intent to become a permanent resident. Questioned Costs: None Assistance Listing Number: 84.044 Assistance Listing Title: TRIO Cluster Views of Responsible Officials (state whether your agency agree...

Finding: 2025-084 - The University did not properly maintain documentation to demonstrate a student’s intent to become a permanent resident. Questioned Costs: None Assistance Listing Number: 84.044 Assistance Listing Title: TRIO Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): There is no disagreement with the audit finding. Corrective Action (corrective action planned): Services for the students involved have been terminated. UAA has reviewed the current procedures and implemented system improvements to prevent similar omissions in the future. The existing student eligibility verification checklist has been reviewed thoroughly to ensure all required documentation is in place; and a random sample of students files will be reviewed semi-annually to proactively identify any issues. In addition, all the staff involved have completed the necessary training. Completion Date (list anticipated completion date): Completed Agency Contact (name of person responsible for corrective action): Tamika Dowdy, UAA TRIO Programs Director, 907-786-4520

View Audit 399484

Finding 1208562 (2025-081)

Material Weakness 2025

State of Alaska

AK

Student Financial Aid Allowable Costs / Cost Principles Eligibility § 200.303

Finding: 2025-081 - During inquiries with management the University of Alaska identified multiple students during enrollment verification process that they determined were fictious. Questioned Costs: AL 84.007: 4,947, AL 84.063: 27,059, AL 84.268: 158,554 Assistance Listing Number: 84.063 84.268 84....

Finding: 2025-081 - During inquiries with management the University of Alaska identified multiple students during enrollment verification process that they determined were fictious. Questioned Costs: AL 84.007: 4,947, AL 84.063: 27,059, AL 84.268: 158,554 Assistance Listing Number: 84.063 84.268 84.007, 84.033 Assistance Listing Title: Student Financial Assistance Cluster (SFAC) Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): There is no disagreement with the audit finding. Corrective Action (corrective action planned): The university has been actively implementing process improvements across all campuses (UAF, UAA and UAS) to strengthen controls and prevent similar occurrences. Enhancements to the existing processes include the deployment of multilayered interim screening measures to mitigate fraudulent accounts and strengthen internal controls. In addition, the University has acquired a long-term software solution which is currently in the final phase of implementation, to further enhance identity verification procedures and strengthen cybersecurity capabilities. Completion Date (list anticipated completion date): May 31, 2026 Agency Contact (name of person responsible for corrective action): Amanda Wall, AVC, UAF Financial Services, 907-474-7552

View Audit 399484

Finding 1208542 (2025-056)

Material Weakness 2025

State of Alaska

AK

Allowable Costs / Cost Principles Eligibility

Finding: 2025-056 - Sixty Medicaid and sixty CHIP recipients were randomly selected for eligibility testing. Testing revealed the following errors: Medicaid five of 60 cases lacked eligibility determination issues (note, some case had multiple deficiencies): • One of sixty case files lacked the prop...

Finding: 2025-056 - Sixty Medicaid and sixty CHIP recipients were randomly selected for eligibility testing. Testing revealed the following errors: Medicaid five of 60 cases lacked eligibility determination issues (note, some case had multiple deficiencies): • One of sixty case files lacked the proper case notes to properly maintain how the individual was determined eligible for payments. • One of sixty cases had an incorrect social security number entered into the ARIES system. In addition: • Five of sixty files lacked documentation of facts supporting the eligibility determination. • One of sixty participants did not meet income eligibility requirements. • Two of sixty cases lacked documentation to verify that the Income and Eligibility Verification System (IEVS) was used to verify income eligibility. CHIP 17 of 60 cases lacked eligibility: determination issues, (note, some case had multiple deficiencies). • One of sixty case files was missing a: CHIP-specific application that was signed of by the program recipient. • Three of the sixty identified cases had identified income that exceeded income limits or income was unable to be verified. • Four of sixty cases lacked documentation to verify that the Income and Eligibility Verification System was used, to verify income eligibi1ity. • Three of sixty cases were not properly closed after the period of eligibility to receive benefits had ended. • Four of sixty cases that had payments to programs participants that were deemed unallowable costs activities due to-multiple individual compliance issues. • Sixteen of sixty cases lacked adequate support for eligibility determinations/redeterminations. Questioned Costs: AL 93.778: 138 (known questioned costs); 37,006,989 (likely questioned costs), AL 93.767: 288 (known questioned costs); 582,269 (likely questioned costs) Assistance Listing Number: 93.767, 93.775, 93.777, 93.778 Assistance Listing Title: CHIP Medicaid Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department agrees with the finding but does not concur with the questioned costs. CMS has notified the state that financial recoveries based on eligibility errors can only be pursued when identified by programs operating under CMS’ Payment Error Rate Measurement (PERM) program, under section 1903(u) of the Social Security Act and regulations at 42 CFR Part 431, Subpart Q. Corrective Action (corrective action planned): The Division of Public Assistance will continue to perform case reviews and will randomly sample eligibility determinations to identify error trends and improve training opportunities. Case reviews that specifically target income and case documentation will be performed. The division will broadly message case documentation expectations as well as review in individual office meetings. The division will analyze its case documentation protocols and update them as necessary to ensure all relevant documentation supporting eligibility decisions are present in electronic case files. Completion Date (list anticipated completion date): The department anticipates the finding will be resolved in FY2027. Agency Contact (name of person responsible for corrective action): Pam Halloran, Assistant Commissioner

View Audit 399484

Finding 1208541 (2025-055)

Material Weakness 2025

State of Alaska

AK

Eligibility Material Weakness

Finding: 2025-055 - Sixty Medicaid and sixty Children’s Health Insurance Program (CHIP) recipients were randomly selected for eligibility testing. Testing revealed the following errors: Medicaid 14 of 60 cases had timing issues (note, some cases had multiple deficiencies): • Seven of the sixty cases...

Finding: 2025-055 - Sixty Medicaid and sixty Children’s Health Insurance Program (CHIP) recipients were randomly selected for eligibility testing. Testing revealed the following errors: Medicaid 14 of 60 cases had timing issues (note, some cases had multiple deficiencies): • Seven of the sixty cases had not gone through a renewal assessment within 12 months of the last determination. • Eleven of the sixty cases’ eligibility determinations were not done timely (i.e., within 45 days). CHIP 26 of 60 cases had timing issues (note, some cases had multiple deficiencies): • Fifteen of sixty cases’ eligibility determinations were not done timely (i.e., within 45 days). • Eighteen of sixty cases had not gone through a renewal assessment within 12 months of the last determination. Questioned Costs: AL 93.778: 2,653 (known questioned costs); 712,969,620 (likely questioned costs), AL 93.767: 2,825 (known questioned costs); 5,719,575 (likely questioned costs) Assistance Listing Number: 93.767, 93.775, 93.777, 93.778 Assistance Listing Title: CHIP Medicaid Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department agrees with the finding but does not concur with the questioned costs. CMS has notified the state that financial recoveries based on eligibility errors can only be pursued when identified by programs operating under CMS’ Payment Error Rate Measurement (PERM) program, under section 1903(u) of the Social Security Act and regulations at 42 CFR Part 431, Subpart Q. Corrective Action (corrective action planned): The Division of Public Assistance continues engaging with contractors to incorporate system upgrades to improve timeliness and accuracy with Medicaid determinations. The division will provide additional eligibility resources to ensure timely review of Medicaid cases. Completion Date (list anticipated completion date): The department anticipates the finding will be resolved in FY2027. Agency Contact (name of person responsible for corrective action): Pam Halloran, Assistant Commissioner

View Audit 399484

Finding 1208533 (2025-070)

Material Weakness 2025

State of Alaska

AK

Allowable Costs / Cost Principles Student Financial Aid Eligibility

Finding No. 2025-070 - An evaluation of the Office of Children’s Services (OCS) Online Resources for the Children of Alaska (ORCA) system controls identified an internal control weakness. Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree,...

Finding No. 2025-070 - An evaluation of the Office of Children’s Services (OCS) Online Resources for the Children of Alaska (ORCA) system controls identified an internal control weakness. Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): DFCS agrees with the finding. Corrective Action (corrective action planned): OCS will be making modifications to the ORCA system that will automatically deactivate any user who has not logged in within 30 days during the ORCA update on 4 16 2026. Completion Date (list anticipated completion date): DFCS anticipates the finding will be resolved in FY2026. Agency Contact (name of person responsible for corrective action): Nancy Miller, Finance Officer

View Audit 399484

Finding 1208529 (2025-051)

Material Weakness 2025

State of Alaska

AK

Eligibility Subrecipient Monitoring Significant Deficiency

Finding: 2025-051 - Five of sixty Temporary Assistance for Needy Families (TANF) recipient case files - tested lacked adequate documentation to indicate that the participant met all eligibility criteria. The following errors were noted: • One case had the monthly benefit the individual calculated in...

Finding: 2025-051 - Five of sixty Temporary Assistance for Needy Families (TANF) recipient case files - tested lacked adequate documentation to indicate that the participant met all eligibility criteria. The following errors were noted: • One case had the monthly benefit the individual calculated incorrectly causing an underpayment to the individual. • One case lacked documentation to verify if an 18 year old was attending high school and expected graduation date. • Three cases did not contain a child support cooperation form that assigns to the State the rights the family member may have for support from any other person. Questioned Costs: 3,702 (known questioned costs); 759,673 (likely questioned costs) Assistance Listing Number: 93.558 Assistance Listing Title: TANF Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department agrees with the finding. Corrective Action (corrective action planned): The Division of Public Assistance will continue to perform case reviews and will randomly sample eligibility determinations to identify error trends and improve training opportunities. The division will present refresher training for child support cooperation protocols. Case reviews that specifically target income and case documentation will be performed. The division will broadly message case documentation expectations as well as review those expectations in individual office meetings. The division will analyze its case documentation protocols and update them as necessary to ensure all relevant documentation supporting eligibility decisions are present in electronic case files. Completion Date (list anticipated completion date): The department anticipates the finding will be resolved in FY2027. Agency Contact (name of person responsible for corrective action): Pam Halloran, Assistant Commissioner

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Finding 1208520 (2025-010)

Material Weakness 2025

State of Alaska

AK

Eligibility Significant Deficiency § 200.303

Finding: 2025-010 - Internal controls to ensure applicants were eligible to receive donations of federal surplus personal property were not consistently applied. Questioned Costs: None Assistance Listing Number: 39.003 Assistance Listing Title: Donation of Federal Surplus Personal Property Views of ...

Finding: 2025-010 - Internal controls to ensure applicants were eligible to receive donations of federal surplus personal property were not consistently applied. Questioned Costs: None Assistance Listing Number: 39.003 Assistance Listing Title: Donation of Federal Surplus Personal Property Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): SSOA/OPPM, State Property Office agrees with this finding Corrective Action (corrective action planned): The State Property Office has implemented a two-step process with a monthly review to help ensure compliance with this requirement. The State Property Office also conducted internal staff training on the updated internal control procedures in December 2025. Completion Date (list anticipated completion date): The two-step review process was implemented September 30, 2025, internal staff training was completed in December 2025, with the State Plan of Operations also being updated. Agency Contact (name of person responsible for corrective action): Jonathon Harshfield State of Alaska Property Manager

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