Corrective Action Plans

Finding 396354 (2023-044)

Significant Deficiency 2023

State of Alaska

AK

Allowable Costs / Cost Principles Eligibility Significant Deficiency

Finding: 2023-044 - Internal control weaknesses were identified over logical access to the system used to process energy assistance applications. Questioned Costs: None Assistance Listing Number: 93.568 Assistance Listing Title: Low-Income Home Energy Assistance Program (LIHEAP) Views of Respon...

Finding: 2023-044 - Internal control weaknesses were identified over logical access to the system used to process energy assistance applications. Questioned Costs: None Assistance Listing Number: 93.568 Assistance Listing Title: Low-Income Home Energy Assistance Program (LIHEAP) Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): DOH agrees with the finding. Corrective Action (corrective action planned): The Division of Public Assistance (DPA) will incorporate LIHEAP cases to be reviewed into the monthly sampling plan. DPA continues to address systems related internal control deficiencies. The division will work with the vendor to develop a reconciliation while state staff training will be strengthened. Completion Date (list anticipated completion date): DOH anticipates the finding will be resolved in FY2025. Agency Contact (name of person responsible for corrective action): Josie Stern, Assistant Commissioner

View Audit 305957

Finding 396348 (2023-038)

Significant Deficiency 2023

State of Alaska

AK

Questioned Costs Allowable Costs / Cost Principles Eligibility

Finding: 2023-038 - Two of sixty Temporary Assistance for Needy Families (TANF) recipient case files tested lacked documentation supporting the eligibility of the recipient. The following errors were noted: • One case did not include child support documentation in the case file. • One case was for a...

Finding: 2023-038 - Two of sixty Temporary Assistance for Needy Families (TANF) recipient case files tested lacked documentation supporting the eligibility of the recipient. The following errors were noted: • One case did not include child support documentation in the case file. • One case was for a person who was part of a family who had received assistance under TANF for more than the 60 months in another state and moved to Alaska and continued to receive assistance. Questioned Costs: $7,909 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): DOH agrees with the finding. Corrective Action (corrective action planned): The division intends to implement quality control and training efforts using the statewide care review teams and statewide eligibility and learning specialist (SEALS) team. The division continues to work through public health emergency (PHE) priorities and mandates, PHE unwinding, and continues to experience staffing shortages. This will likely impact the ability to immediately execute the corrective action plan. Completion Date (list anticipated completion date): DOH anticipates the finding will be resolved in FY2025. Agency Contact (name of person responsible for corrective action): Josie Stern, Assistant Commissioner

View Audit 305957 Questioned Costs: $1

Finding 396339 (2023-051)

Significant Deficiency 2023

State of Alaska

AK

Questioned Costs Allowable Costs / Cost Principles Eligibility

Finding: 2023-051 - Sixty Medicaid and sixty CHIP recipients were randomly selected for eligibility testing. Auditors found inaccurate or unsupported eligibility determinations by State staff for 5 percent of Medicaid cases tested and 6 percent of CHIP cases tested. Testing revealed the following er...

Finding: 2023-051 - Sixty Medicaid and sixty CHIP recipients were randomly selected for eligibility testing. Auditors found inaccurate or unsupported eligibility determinations by State staff for 5 percent of Medicaid cases tested and 6 percent of CHIP cases tested. Testing revealed the following errors: Medicaid: • One case was ineligible for the whole year and benefits were available the whole year. • Two cases lacked documentation supporting the request and use of income and benefit information through the Income Eligibility and Verification System for determining eligibility and benefits. CHIP: • One case’s application hasn’t been processed as of 6/30/2023 but benefits were paid during the year ended June 30, 2023. • One case was a child that had turned 19 in a previous year but benefits continued to be paid during the year ended June 30, 2023. • Two cases had unresolved help desk tickets about how to close a case, which led to the cases remaining open and benefits to be paid for one of the cases during the year ended June 30, 2023. Questioned Costs: AL 93.767: $ 167; AL 93.778: $ 960 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): DOH agrees with the finding but not 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 will continue to strengthen online staff development and training offerings available in the department’s electronic training portal, including courses on MAGI/CHIP Medicaid and ARIES. The agency continues to streamline the Statewide Case Review Team and the case review guidelines with the goal of increasing timeliness and accuracy. The division continues to work through public health emergency (PHE) priorities and mandates, PHE unwinding, and continues to experience staffing shortages. This will likely impact the ability to immediately execute the corrective action plan. Completion Date (list anticipated completion date): DOH anticipates the finding will be resolved in FY2025. Agency Contact (name of person responsible for corrective action): Josie Stern, Assistant Commissioner

View Audit 305957 Questioned Costs: $1

Finding 396338 (2023-050)

Significant Deficiency 2023

State of Alaska

AK

Eligibility Cash Management Significant Deficiency

Finding: 2023-050 - Sixty Medicaid and sixty CHIP recipients were randomly selected for eligibility testing. Testing revealed the following errors: Medicaid: • Twelve of the sixty recipients tested (20 percent), the State did not process applications in a timely manner or redetermine eligibility. Th...

Finding: 2023-050 - Sixty Medicaid and sixty CHIP recipients were randomly selected for eligibility testing. Testing revealed the following errors: Medicaid: • Twelve of the sixty recipients tested (20 percent), the State did not process applications in a timely manner or redetermine eligibility. The delays for completion of processing of the applications ranged from 46 days to 279 days as of June 30, 2023. CHIP: • Six of the sixty recipients tested (10 percent), the State did not process applications in a timely manner or redetermine eligibility. The delays for completion of processing of the applications ranged from 56 days to 225 days as of June 30, 2023. • One of the sixty recipients tested (1.6 percent), the beneficiary was due to have eligibility redetermined, however no information was submitted to the State for review and staff did not independently conduct a redetermination. For recipients following the Modified Adjusted Gross Income methodology, the State should have attempted to redetermine eligibility through electronic interfaces. Questioned Costs: None 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): DOH agrees with the finding. Corrective Action (corrective action planned): DPA will assess available resources to address timeliness of eligibility redeterminations. The division will also continue eligibility redeterminations in accordance with CMS approved public health emergency (PHE) unwinding requirements and plans. Completion Date (list anticipated completion date): DOH anticipates the finding will be resolved in FY2025. Agency Contact (name of person responsible for corrective action): Josie Stern, Assistant Commissioner

View Audit 305957

Finding 396337 (2023-049)

Significant Deficiency 2023

State of Alaska

AK

Eligibility Significant Deficiency

Finding: 2023-049 - An examination of the Alaska Resource for Integrated Eligibility Services system during FY 22 identified significant internal control deficiencies. An examination was not performed in FY 23, however certain deficiencies noted in the FY 22 report have not been alleviated in FY 23....

Finding: 2023-049 - An examination of the Alaska Resource for Integrated Eligibility Services system during FY 22 identified significant internal control deficiencies. An examination was not performed in FY 23, however certain deficiencies noted in the FY 22 report have not been alleviated in FY 23. Questioned Costs: None Assistance Listing Number: 93.767; 93.775, 93.777, 93.778 Assistance Listing Title: Children’s Health Insurance Program; Medicaid Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): DOH agrees with the finding. Corrective Action (corrective action planned): DPA continues to work with its contractor to address Alaska Resource for Integrated Eligibility Services (ARIES) system internal control deficiencies. Completion Date (list anticipated completion date): The audit finding will be resolved in FY2024. Agency Contact (name of person responsible for corrective action): Josie Stern, Assistant Commissioner

View Audit 305957

Finding 396309 (2023-059)

Significant Deficiency 2023

State of Alaska

AK

Subrecipient Monitoring Allowable Costs / Cost Principles Eligibility § 200.303

Finding: 2023-059 – DOT&PF's Division of Program Development does not have a formal process for managing user access to its transit data management system. Questioned Costs: None Assistance Listing Number: 20.509 Assistance Listing Title: Formula Grants for Rural Areas (FGRA) Views of Responsibl...

Finding: 2023-059 – DOT&PF's Division of Program Development does not have a formal process for managing user access to its transit data management system. Questioned Costs: None Assistance Listing Number: 20.509 Assistance Listing Title: Formula Grants for Rural Areas (FGRA) Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): Agree Corrective Action (corrective action planned): The Division of Project Delivery will develop a procedure to manage user access to the system as well as working with system programmers to automatically deactivate user accounts after a period of inactivity. Completion Date (list anticipated completion date): June 30, 2024 Agency Contact (name of person responsible for corrective action): Eric Taylor, Transportation Planner 3

View Audit 305957

Finding 396293 (2023-032)

Material Weakness 2023

State of Alaska

AK

Questioned Costs School Nutrition Programs Cash Management § 200.303

Finding: 2023-032 - Pandemic Electronic Benefit Transfer Food Benefits (P-EBT) benefit payments were not issued in accordance with the process and timeframes outlined in the federally approved state plan. Testing a sample of 136 payments found 37 issuances (27 percent) were sent to unauthorized or u...

Finding: 2023-032 - Pandemic Electronic Benefit Transfer Food Benefits (P-EBT) benefit payments were not issued in accordance with the process and timeframes outlined in the federally approved state plan. Testing a sample of 136 payments found 37 issuances (27 percent) were sent to unauthorized or unsupported addresses and one issuance included unauthorized benefits. Additionally, no benefits were issued during FY 23 to Supplemental Nutrition Assistance Program (SNAP)-enrolled children in child care. Questioned Costs: AL 10.542: $27,387 Assistance Listing Number: 10.542 Assistance Listing Title: P-EBT – COVID-19 Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): DOH partially agrees with the finding. The Division communicated with FNS regarding manual benefit issuance for Alaska expressing timelines would be affected and FNS did not request an updated timeline. Communication with FNS regarding issuance remained consistent, with no indication to alter our issuance plan. Address verifications were conducted at the time of benefit payment, because addresses are subject to change from the date of eligibility. Updates to addresses were made when more recent information became available. The division has no control over DEED eligibility records including the addresses they have on file. Corrective Action (corrective action planned): Shall the Division agree to administer this federal program in the future, the commissioner will allocate resources necessary to prevent the necessity to manually administer the federal program. Completion Date (list anticipated completion date): Not applicable. This federal program is complete. Agency Contact (name of person responsible for corrective action): Josie Stern, Assistant Commissioner

View Audit 305957 Questioned Costs: $1

Finding 396285 (2023-034)

Material Weakness 2023

State of Alaska

AK

Allowable Costs / Cost Principles Eligibility Special Tests & Provisions § 200.303

Finding: 2023-034 - The amount of FY 23 SNAP benefits reported as issued by the State’s Electronic Benefit Transfer (EBT) contractor was $19,689,126 more than the amount of authorized benefits reported in data from DPA’s Eligibility Information System. Questioned Costs: AL 10.551: $19,689,126 Assi...

Finding: 2023-034 - The amount of FY 23 SNAP benefits reported as issued by the State’s Electronic Benefit Transfer (EBT) contractor was $19,689,126 more than the amount of authorized benefits reported in data from DPA’s Eligibility Information System. Questioned Costs: AL 10.551: $19,689,126 Assistance Listing Number: 10.551, 10.561 Assistance Listing Title: SNAP Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): DOH does not agree with the finding. The Division performs monthly reconciliations and balancing efforts to ensure accuracy with FIS, EIS, and reporting. No discrepancies have been identified by the Division. None of the parties involved in the audit have been able to pinpoint the origin of the discrepancy described in this finding. The Divisions’ monthly reconciliation processes are rigorous, consistent, and thorough, ensuring accuracy and alignment with USDA data from AMA Bank. The reconciliation efforts encompass federal SNAP reports; FNS 388, FNS 46, and the EIS Balance Issuance report, all of which consistently reconcile. The reconciliation extends to ASAP and AMA batch values, with annual certification further validating accuracy. Monthly, the AMA raw data is meticulously balanced in the 388/46 reports, with only the PEBT and EA issuances requiring manual entry from the 292B report. With this steadfast commitment to monthly reconciliation and alignment with AMA data, we are confident in the absence of errors or discrepancies. Corrective Action (corrective action planned): N/A Completion Date (list anticipated completion date): N/A Agency Contact (name of person responsible for corrective action): Josie Stern, Assistant Commissioner

View Audit 305957

Finding 396284 (2023-033)

Material Weakness 2023

State of Alaska

AK

Allowable Costs / Cost Principles Eligibility Special Tests & Provisions § 200.303

Finding: 2023-033 – Division of Public Assistance (DPA) management instructed staff to extend SNAP six-month certification periods after an approved waiver expired bypassing required eligibility recertifications. Furthermore, DPA continued to extend six-month certifications for consecutive periods w...

Finding: 2023-033 – Division of Public Assistance (DPA) management instructed staff to extend SNAP six-month certification periods after an approved waiver expired bypassing required eligibility recertifications. Furthermore, DPA continued to extend six-month certifications for consecutive periods without recertifying eligibility after being notified by the federal award agency that the practice was unallowable. Questioned Costs: AL 10.551: Indeterminate Assistance Listing Number: 10.551, 10.561 Assistance Listing Title: SNAP Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): DOH agrees with the finding. Corrective Action (corrective action planned): The Division of Public Assistance (DPA) reintroduced recertification standard for SNAP beneficiaries. Ensuring programmed auto-closure protocols are active ensures SNAP cessation if households fail to submit recertification packets. Ceasing system-generated SNAP certification extension, the division collaborates on a corrective action plan with Food Nutrition Services (FNS) for compliant benefit recertifications. Completion Date (list anticipated completion date): DOH anticipates the finding will be resolved in FY2024. Agency Contact (name of person responsible for corrective action): Josie Stern, Assistant Commissioner

View Audit 305957

Finding 396261 (2023-001)

None 2023

Edward Romero Terrace

FL

HUD Housing Programs Eligibility Reporting

Oversight Agency for Audit, Edward Romero terrace respectfully submits the following corrective action plan for the year ended September 30, 2023. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 201, Coral Springs, Florida 33067. Au...

Oversight Agency for Audit, Edward Romero terrace respectfully submits the following corrective action plan for the year ended September 30, 2023. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 201, Coral Springs, Florida 33067. Audit period: October 1, 2022 through September 30, 2023 The finding from the September 30, 2023 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number in the schedule. SECTION III - FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT FINDING No. 2023-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Recommendation: The Project should implement procedures to ensure the manager verifies eligibility by obtaining all required documents for potential tenants and maintain support for tenant income verification through the EIV system in a timely manner. Action Taken: Monthly reminders are being sent to all managers to run their EIV reports for the month. In addition, random files are being reviewed by compliance to ensure EIV reports are pulled and required documentation is complete and accurate. If the Oversight Agency for Audit has questions regarding the plan, please call Irene Phillips at 954-835-9200. Sincerely yours, Irene Phillips, CFO Irene Phillips CFO

View Audit 305929

Finding 396255 (2023-001)

None 2023

Chateau Cushnoc, Inc.

FL

HUD Housing Programs Eligibility Reporting

Oversight Agency for Audit, Chateau Cushnoc, Inc. respectfully submits the following corrective action plan for the year ended September 30, 2023. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 201, Coral Springs, Florida 33067 Audit ...

Oversight Agency for Audit, Chateau Cushnoc, Inc. respectfully submits the following corrective action plan for the year ended September 30, 2023. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 201, Coral Springs, Florida 33067 Audit period: October 1, 2022 through September 30, 2023 The findings from the September 30, 2023 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. SECTION III – FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT FINDING No. 2023-001: Section 202 Supportive Housing for the Elderly ALN 14.157 Recommendation: Management should implement procedures to ensure that the appropriate initial eligibility procedures are performed for potential tenants and that tenant files are properly maintained. Action Taken: Compliance hired a new compliance position for this area who is reviewing new move in files and recertification files for accuracy. In addition, training is being completed with the manager regarding screening, unit inspections, and security deposit back up verifications.

View Audit 305918

Finding 396253 (2023-003)

None 2023

Evangeline Council Housing for the Elderly, INC

FL

HUD Housing Programs Eligibility Reporting

FINDING No. 2023-003: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Recommendation: Management should implement procedures to ensure that the required documentation is performed timely and maintained in the tenant files. ...

FINDING No. 2023-003: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Recommendation: Management should implement procedures to ensure that the required documentation is performed timely and maintained in the tenant files. Action Taken: Monthly reminders are being sent to all managers to run their EIV reports for the month. In addition, random files are being reviewed to ensure EIV reports are pulled as required. Training has been conducted with managers on EIV reports and EIV requirements. If the Oversight Agency for Audit has questions regarding this plan, please call Irene Phillips at 954-835-9200. Sincerely yours, Irene Phillips CFO

View Audit 305906

Finding 396162 (2023-001)

Material Weakness 2023

Riverview Apartments Senior Housing

MN

Subrecipient Monitoring Eligibility Material Weakness

Name of contact person – Angela Riley, CFO Corrective action – The Corporation agrees with the finding and has continued to implement strategies to address these issues throughout 2023, including: assembled and deployed a team of external consultants and temporary workers to assist site staff in co...

Name of contact person – Angela Riley, CFO Corrective action – The Corporation agrees with the finding and has continued to implement strategies to address these issues throughout 2023, including: assembled and deployed a team of external consultants and temporary workers to assist site staff in completing tenant recertifications, hired a team of 6 additional roving property management/compliance teams to cover open property management positions and to support site staff in completing tenant recertifications, developed a new training program to onboard site staff, and developed a monitoring program to set expectations and hold employees accountable to those expectations. Proposed completion date – Management has begun the corrective action and is expected to have additional internal control and training done by December 31, 2024.

View Audit 305783

Finding 396161 (2023-001)

Material Weakness 2023

Metro Apartments, Inc. 092-Hh011-Cmi

MN

HUD Housing Programs Subrecipient Monitoring Eligibility

Name of contact person – Angela Riley, CFO Corrective action – The Corporation agrees with the finding and has continued to implement strategies to address these issues throughout 2023, including: assembled and deployed a team of external consultants and temporary workers to assist site staff in co...

Name of contact person – Angela Riley, CFO Corrective action – The Corporation agrees with the finding and has continued to implement strategies to address these issues throughout 2023, including: assembled and deployed a team of external consultants and temporary workers to assist site staff in completing tenant recertifications, hired a team of 6 additional roving property management/compliance teams to cover open property management positions and to support site staff in completing tenant recertifications, developed a new training program to onboard site staff, and developed a monitoring program to set expectations and hold employees accountable to those expectations. Proposed completion date – Management has begun the corrective action and is expected to have additional internal control and training done by December 31, 2024.

View Audit 305780

Finding 396159 (2023-001)

Material Weakness 2023

Century Trails Senior Housing 092-Ee135

MN

Subrecipient Monitoring Eligibility Material Weakness

Name of contact person – Angela Riley, CFO Corrective action – The Corporation agrees with the finding and has continued to implement strategies to address these issues throughout 2023, including: assembled and deployed a team of external consultants and temporary workers to assist site staff in co...

Name of contact person – Angela Riley, CFO Corrective action – The Corporation agrees with the finding and has continued to implement strategies to address these issues throughout 2023, including: assembled and deployed a team of external consultants and temporary workers to assist site staff in completing tenant recertifications, hired a team of 6 additional roving property management/compliance teams to cover open property management positions and to support site staff in completing tenant recertifications, developed a new training program to onboard site staff, and developed a monitoring program to set expectations and hold employees accountable to those expectations. Proposed completion date – Management has begun the corrective action and is expected to have additional internal control and training done by December 31, 2024.

View Audit 305774

Finding 396158 (2023-001)

Material Weakness 2023

Boulevard Gardens Senior Housing 092-Ee025wah

MN

Subrecipient Monitoring Eligibility Material Weakness

Name of contact person – Angela Riley, CFO Corrective action – The Corporation agrees with the finding and has continued to implement strategies to address these issues throughout 2023, including: assembled and deployed a team of external consultants and temporary workers to assist site staff in co...

Name of contact person – Angela Riley, CFO Corrective action – The Corporation agrees with the finding and has continued to implement strategies to address these issues throughout 2023, including: assembled and deployed a team of external consultants and temporary workers to assist site staff in completing tenant recertifications, hired a team of 6 additional roving property management/compliance teams to cover open property management positions and to support site staff in completing tenant recertifications, developed a new training program to onboard site staff, and developed a monitoring program to set expectations and hold employees accountable to those expectations. Proposed completion date – Management has begun the corrective action and is expected to have additional internal control and training done by December 31, 2024.

View Audit 305773

Finding 396157 (2023-001)

Material Weakness 2023

Bii Di Gain Dash Anwebi Elder Housing 092-Ee140

MN

Subrecipient Monitoring Eligibility Material Weakness

Name of contact person – Angela Riley, CFO Corrective action – The Corporation agrees with the finding and has continued to implement strategies to address these issues throughout 2023, including: assembled and deployed a team of external consultants and temporary workers to assist site staff in co...

Name of contact person – Angela Riley, CFO Corrective action – The Corporation agrees with the finding and has continued to implement strategies to address these issues throughout 2023, including: assembled and deployed a team of external consultants and temporary workers to assist site staff in completing tenant recertifications, hired a team of 6 additional roving property management/compliance teams to cover open property management positions and to support site staff in completing tenant recertifications, developed a new training program to onboard site staff, and developed a monitoring program to set expectations and hold employees accountable to those expectations. Proposed completion date – Management has begun the corrective action and is expected to have additional internal control and training done by December 31, 2024.

View Audit 305772

Finding 396145 (2023-002)

Material Weakness 2023

Natco Credit Union

IN

Eligibility Matching / Level of Effort / Earmarking

Management understands the need for implementing processes and procedures regarding the monitoring and reporting of eligible loans to ensure they are in accordance with the proper reporting framework.

View Audit 305745

Finding 396144 (2023-001)

Material Weakness 2023

Natco Credit Union

IN

Eligibility Matching / Level of Effort / Earmarking

Management understands the need for implementing processes and procedures regarding the monitoring and reporting of eligible loans to ensure they are in accordance with the proper reporting framework.

View Audit 305745

Finding 396114 (2023-027)

Significant Deficiency 2023

State of New Jersey

NJ

Internal Control / Segregation of Duties Special Tests & Provisions Procurement, Suspension & Debarment § 200.303

The audit finding noted one Consultative Examination (CE) provider where the qualified provider review was not completed timely and this was an oversight on the part of the Department of Labor and Workforce Development’s Division of Disability Services (DDS) due to attrition of staff. Going forward...

The audit finding noted one Consultative Examination (CE) provider where the qualified provider review was not completed timely and this was an oversight on the part of the Department of Labor and Workforce Development’s Division of Disability Services (DDS) due to attrition of staff. Going forward, each DDS Professional Relations Officer will be responsible for reviewing eight to 10 CE provider’s qualifications each month until the yearly review is completed for each vendor. The Chief of Professional Relations will submit a monthly report to the DDS Assistant Director detailing how many sites were visited that month and any findings that may have occurred. Each month, the report will detail how many reports remain outstanding in order to complete the yearly reviews. COMPLETION DATE/ CONTACT PERSON & PHONE# April 9, 2024 Theresa Vallely (609) 984-1779 Theresa.Vallely@dol.nj.gov

View Audit 305672

Finding 396053 (2023-003)

Material Weakness 2023

State of New Jersey

NJ

Special Tests & Provisions Eligibility Material Weakness § 200.303

The Department of Labor and Workforce Development (DLWD) will continue to review and enhance controls to ensure that BAM quality control case investigations are completed timely, that reviews are signed as required by appropriate staff, and that all required case review supporting documentation is m...

The Department of Labor and Workforce Development (DLWD) will continue to review and enhance controls to ensure that BAM quality control case investigations are completed timely, that reviews are signed as required by appropriate staff, and that all required case review supporting documentation is maintained in case files. DLWD corrective actions will be completed by September 30, 2024. COMPLETION DATE/ CONTACT PERSON September 30, 2024 Theresa Vallely (609) 984-1779 Theresa.Vallely@dol.nj.gov

View Audit 305672

Finding 396051 (2023-002)

Material Weakness 2023

State of New Jersey

NJ

Eligibility Matching / Level of Effort / Earmarking Special Tests & Provisions § 200.303

The Reemployment Services and Eligibility Assessments (RESEA) policy and controls presently in place at the Department of Labor and Workforce Development (DLWD) require eligibility interviews to be conducted and eligibility review forms to be completed and signed by the participant and UI program re...

The Reemployment Services and Eligibility Assessments (RESEA) policy and controls presently in place at the Department of Labor and Workforce Development (DLWD) require eligibility interviews to be conducted and eligibility review forms to be completed and signed by the participant and UI program representative. DLWD implemented a new process that allows staff to electronically obtain signatures through Simpligov, beginning June 2023. This process requires that staff obtain all necessary signatures before a RESEA claimant record is completed. Supervisors are assigned to monitor this process in order to mitigate the risk associated with missing information on any single RESEA customer registration. DLWD will monitor this process to ensure that all interviews are properly documented, and forms are signed and electronically uploaded to its electronic case management system of record for future reference. During the initial rollout of this process, there were records that didn’t migrate to the case management system of record. This issue has now been addressed through training. DLWD has also developed dashboards that will assist with monitoring data entry. Monthly reviews of RESEA data entry will be conducted to identify possible errors. These RESEA process changes that will be implemented by DLWD will ensure compliance with regulatory standards and assist with maintaining the integrity of its data management process. COMPLETION DATE/ CONTACT PERSON June 30, 2023 Baden Almonor (609) 777-1042 Baden.Almonor@dol.nj.gov

View Audit 305672

Finding 396049 (2023-001)

Material Weakness 2023

State of New Jersey

NJ

Questioned Costs Eligibility Internal Control / Segregation of Duties § 200.303

The Department of Labor and Workforce Development (DLWD) has controls in place to only allow an FPUC payment to be made when an underlying Unemployment Insurance (UI) payment has also been processed. FPUC payments should not be issued to any claim without the underlying UI payment being made for th...

The Department of Labor and Workforce Development (DLWD) has controls in place to only allow an FPUC payment to be made when an underlying Unemployment Insurance (UI) payment has also been processed. FPUC payments should not be issued to any claim without the underlying UI payment being made for the same week. The FPUC payments issued and noted as exceptions during eligibility testing will be reviewed independently by DLWD to determine if the payments issued were to eligible recipients or not. For the PUA exceptions noted during Eligibility testing, overall the DLWD issued PUA payments to over 680,000 claimants during the COVID-19 pandemic. DLWD had controls in place to require a COVID related reason to make the claim PUA eligible and the weekly PUA certification required claimants to choose a COVID related reason for why they were out of work before they could get paid. The PUA payments in question will be reviewed independently by the DLWD to determine if the payments issued under PUA were appropriate or if they should have been paid instead under the regular UI program. DLWD corrective actions related to FPUC and PUA payments were fully implemented as of September 2023. COMPLETION DATE/ CONTACT PERSON September 2023 Theresa Vallely (609) 984-1779 Theresa.Vallely@dol.nj.gov

View Audit 305672 Questioned Costs: $1

Finding 396004 (2023-004)

Material Weakness 2023

Boys and Girls Clubs of Philadelphia, Inc.

PA

Questioned Costs Allowable Costs / Cost Principles Eligibility § 200.329

Out of over 182 compliance records requested, the organization was unable to provide 3 health assessments, all other requested documentation was provided. The missing health assessments were for high school students, who are not required to provide them to attend school and often do not have access ...

Out of over 182 compliance records requested, the organization was unable to provide 3 health assessments, all other requested documentation was provided. The missing health assessments were for high school students, who are not required to provide them to attend school and often do not have access to updated health assessments. We have been directed by the funding agency never to exclude these youth from participation for an inability to obtain a health assessment. BGCP has already taken steps to address these issues. The funding agency, PHMC has begun sending monthly compliance reports. Over the last three months, we have collected 42% of missing health assessments organization wide. Additionally, on our recent FY24 Admin review from PHMC, which included a full compliance report, all of our sites received overall scores of above 95%. We will continue to monitor compliance and follow-up with youth and families to complete needed items.

View Audit 305611 Questioned Costs: $1

Finding 395911 (2023-001)

Material Weakness 2023

Louisville Metro Housing Authority

KY

HUD Housing Programs Eligibility Material Weakness

Finding Reference Number: 2023-001 Statement of Concurrence or N onconcurrence: Louisville Metro Housing Authority agrees with Cherry Bekaert in reference to audit finding 2023-001. Corrective Action: LMHA has implemented a comprehensive plan to resolve the backlog of recertifications that necessita...

Finding Reference Number: 2023-001 Statement of Concurrence or N onconcurrence: Louisville Metro Housing Authority agrees with Cherry Bekaert in reference to audit finding 2023-001. Corrective Action: LMHA has implemented a comprehensive plan to resolve the backlog of recertifications that necessitated the roll forward of tenant's prior year form HUD-50058 family report without updating family income and composition. First and foremost, representing the rolling forward of the tenant's HUD-50058 as a biennial recertification has been discontinued. Compliance staff has implemented training of Housing Specialists and other staff to assure biennial recertification and use of HUD-50058 Type 2 ("Annual Recertification") will now be compliant. LMHA has contracted with a vendor to assist with the recertification process. LMHA has also restructured workflows to provide efficiencies and accountability that will promote compliance. LMHA is also working with various HUD departments and personnel to assess noncompliance and how to move forward. In addition to resolving these issues with HUD, LMHA has engaged its Financial Auditor, Cherry Bekaert, to review the Housing Choice Voucher Program for process, compliance, and internal control. Name of Contact Person: Sarah Galloway, Special Assistant to the Executive Director, 502-569-3422, galloway@lmhal.org Projected Completion Date: Louisville Metro Housing Authority implemented the corrective action measure in March 2024. LMHA will monitor the issue on a monthly basis to ensure compliance with the HCV program. QUESTIONED COSTS Undeterminable per Cherry Bekaert If the (Office of Policy and Management and/or Oversight Agency) has questions regarding this Plan, please call Jeff Ralph at 502-569-4372.

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Corrective Action Plans

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