Corrective Action Plans

Finding 397413 (2023-051)

Material Weakness 2023

State of Washington C/o Office of Financial Management

WA

Questioned Costs Matching / Level of Effort / Earmarking Subrecipient Monitoring § 200.303 § 200.403 § 200.410 § 200.53

Finding: The Department of Children, Youth, and Families did not have adequate internal controls over and did not comply with requirements to ensure payments to child care providers paid with Temporary Assistance for Needy Families funds were allowable and property supported. Questioned Costs: A...

Finding: The Department of Children, Youth, and Families did not have adequate internal controls over and did not comply with requirements to ensure payments to child care providers paid with Temporary Assistance for Needy Families funds were allowable and property supported. Questioned Costs: Assistance Listing # 93.558 Amount $107,338,725 Status: Corrective action in progress Corrective Action: The Working Connections Child Care (WCCC) program was previously managed by the Department of Social and Health Services (DSHS) and the Department of Early Learning. Since the program transitioned in 2019, the Department has been making efforts to strengthen internal controls over payments to child care providers and other grant requirements. The Department implemented grant-level management of all federal funds, including the Temporary Assistance for Needy Families grant. This consisted of making significant grant level adjustments between allowable grant sources to properly spend grant dollars within the allowable period of performance and ensure level of effort and matching requirements were met. The Department’s grant adjustments were processed based on eligible clients and allowable activities. The Department does not currently have the staff to develop and maintain the business process redesign, as well as the information technology initiatives necessary to meet the level of assurance recommended by the State Auditor’s Office. In response to the auditor’s recommendations, the Department submitted a budget request for the 2024 supplemental budget. Funding was provided to develop and maintain the business process that would allow adjustments to include child-level data beginning July 2024. The conditions noted in this finding were previously reported in findings 2022-035 and 2021-028. Completion Date: Estimated December 2025 Agency Contact: Stefanie Niemela Audit Liaison PO Box 40970 Olympia, WA 98504-0970 (360) 725-4402 stefanie.niemela@dcyf.wa.gov

View Audit 306534 Questioned Costs: $1

Finding 397219 (2023-029)

Material Weakness 2023

State of Washington C/o Office of Financial Management

WA

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.1 § 200.403 § 200.410

Finding: The Department of Social and Health Services did not have adequate internal controls over and did not comply with requirements for monitoring subrecipients to ensure payments were allowable, properly supported and met period of performance requirements for the Coronavirus State and Local F...

Finding: The Department of Social and Health Services did not have adequate internal controls over and did not comply with requirements for monitoring subrecipients to ensure payments were allowable, properly supported and met period of performance requirements for the Coronavirus State and Local Fiscal Recovery Funds. Questioned Costs: Assistance Listing # 21.027 COVID-19 Amount $312,659,850 Status: Corrective action in progress Corrective Action: The Department partially concurs with the finding. The Department’s Office of Refugee and Immigrant Assistance (ORIA) administered this funding through the Washington COVID-19 Immigrant Relief Fund program and contracted with a subrecipient organization to conduct eligibility determinations to approve and disburse funds to undocumented immigrants. This program is now closed, with all subrecipient contracts ended and the final payments sent in early 2023. The Department is taking action to strengthen internal controls over subrecipient monitoring for ORIA’s contracts. By July 2024, the Department will: • Complete a review of all active contracts utilizing federal funding to ensure subrecipients are accurately identified. • Explore the feasibility of increasing ORIA and Economic Services Administration accounting staff resources to support the workload increase associated with monitoring subrecipients. By October 2024, the Department will convene a work group with contracts and accounting staff to create effective internal controls and written procedures for fiscal and program monitoring of ORIA’s subrecipient contracts. This will include the following: • Verify the subrecipient status for each contract is correctly determined and recorded in the Agency Contracts Database. • Include the required subrecipient language in the contract. • Obtain a copy of the indirect rate certification or cost allocation plan from the subrecipient. • Complete risk assessments. • Create appropriate monitoring plans for each subrecipient. • Conduct fiscal monitoring of each subrecipient to obtain assurance that the use of federal funds complies with federal laws and regulations. • Create corrective action plans when required. By January 2025, the Department will ensure all ORIA program staff responsible for monitoring receive training on the updated procedures. In addition, the Office of the Secretary will request the Department’s Internal Audit and Consultation office conduct an internal audit of ORIA to ensure the program implements strong internal controls, properly accounts for federal funds, and materially complies with federal requirements. The Department does not concur with the questioned costs. The funds were used to assist Washington workers/families who were affected by the COVID-19 pandemic but were unable to access federal stimulus programs and other social support due to their immigration status. Repayment of these funds would only hinder the state’s ability to provide critical services to our clients. If the grantor contacts the Department regarding the questioned costs, the Department will discuss this with the Department of Health & Human Services and will take additional action as appropriate. Completion Date: Estimated January 2025 Agency Contact: Richard Meyer External Audit Compliance Manager PO Box 45804 Olympia, WA 98504-5804 (360) 664-6027 Richard.Meyer@dshs.wa.gov

View Audit 306534 Questioned Costs: $1

Finding 397209 (2023-023)

Material Weakness 2023

State of Washington C/o Office of Financial Management

WA

Subrecipient Monitoring Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking

Finding: The Housing Finance Commission did not have adequate internal controls over earmarking requirements for the Homeowner Assistance Fund program. Questioned Costs: Assistance Listing # 21.026 COVID-19 Amount $0 Status: Corrective action in progress Corrective Action: The Commissio...

Finding: The Housing Finance Commission did not have adequate internal controls over earmarking requirements for the Homeowner Assistance Fund program. Questioned Costs: Assistance Listing # 21.026 COVID-19 Amount $0 Status: Corrective action in progress Corrective Action: The Commission will take the following corrective actions to strengthen controls over earmarking requirements for the Homeowner Assistance Fund (HAF) program: • Develop a system to track and monitor expenditures in relation to overall program expenditures to ensure earmarking requirements are within allowable parameters. • Select an increased percentage of approved, denied, and withdrawn HAF applications that have previously been reviewed by the contractor, as part of the Quality Control process, for a secondary review by program staff. • Review a selection of HAF applications independent of the Quality Control process performed by the contractor. • Review a selection of approved HAF applications prior to disbursing funds to confirm eligibility determinations are proper. Completion Date: Estimated June 2024 Agency Contact: Lucas Loranger Senior Finance Director 1000 Second Ave, Suite 2700 Seattle, WA 98104-3601 (206) 464-7139 Lucas.Loranger@wshfc.org

View Audit 306534

Finding 397208 (2023-022)

Material Weakness 2023

State of Washington C/o Office of Financial Management

WA

Subrecipient Monitoring Eligibility Internal Control / Segregation of Duties

Finding: The Housing Finance Commission did not have adequate internal controls over eligibility requirements for the Homeowner Assistance Fund program. Questioned Costs: Assistance Listing # 21.026 COVID-19 Amount $0 Status: Corrective action in progress Corrective Action: The Commissi...

Finding: The Housing Finance Commission did not have adequate internal controls over eligibility requirements for the Homeowner Assistance Fund program. Questioned Costs: Assistance Listing # 21.026 COVID-19 Amount $0 Status: Corrective action in progress Corrective Action: The Commission will take the following corrective actions to strengthen controls over eligibility requirements for the Homeowner Assistance Fund (HAF) program: • Select an increased percentage of approved, denied, and withdrawn HAF applications that have previously been reviewed by the contractor, as part of the Quality Control process, for a secondary review by program staff. • Review a selection of HAF applications independent of the Quality Control process performed by the contractor. • Review a selection of approved HAF applications prior to disbursing funds to confirm eligibility determinations are proper. Completion Date: Estimated June 2024 Agency Contact: Lucas Loranger Senior Finance Director 1000 Second Ave, Suite 2700 Seattle, WA 98104-3601 (206) 464-7139 Lucas.Loranger@wshfc.org

View Audit 306534

Finding 397189 (2023-010)

Material Weakness 2023

State of Washington C/o Office of Financial Management

WA

Subrecipient Monitoring Internal Control / Segregation of Duties Special Tests & Provisions

Finding: The Employment Security Department did not have adequate internal controls over and did not comply with requirements to ensure it profiled all claimants under the Unemployment Insurance program to identify people likely to need reemployment services and ensure staff providing those service...

Finding: The Employment Security Department did not have adequate internal controls over and did not comply with requirements to ensure it profiled all claimants under the Unemployment Insurance program to identify people likely to need reemployment services and ensure staff providing those services received required training. Questioned Costs: Assistance Listing # 17.225 17.225 COVID-19 Amount $0 Status: Corrective action in progress Corrective Action: The Department concurs with the recommendation to review the calculation of the profile score within the Unemployment Tax and Benefit (UTAB) system. The Department will explore a plan and review resource allocations to more effectively validate the profile score to ensure that coefficient values are correctly determined and assigned by the UTAB system. The Department partially concurs with the recommendation to reconcile the UTAB and Reemployment Appointment Scheduler (RAS) interface. There is currently a process in place to notify the RAS team if a record fails at the time of data transmission between UTAB and RAS. The Department will review its processes to verify the complete UTAB exit file was successfully received by RAS. The Department does not concur with the recommendation to implement additional internal controls over the claimant profiling process. The Department has coordinated closely with the U.S. Department of Labor (USDOL) to conduct the randomized control trial (RCT) to evaluate the Reemployment Services and Eligibility Assessments (RESEA). The Department has written approval from USDOL to utilize this method concurrently with the program’s established process. All program-eligible applicants are scored and provided a risk profile score based on both established standards and a random score for the purposes of carrying out the RCT. The Department does not concur with the recommendation to ensure all employees receive the required RESEA training before providing reemployment screening services to claimants. The Department has internal controls in place to ensure training requirements are met and staff are not granted access to schedule appointments for RESEA services without first receiving the required training. The exceptions noted by the auditors relate to the annual refresher training. In the fall of 2022, the Department implemented procedures to formally track the refresher training completed by RESEA staff. The audit exceptions identified were for two staff not currently providing RESEA services to clients. These individuals will receive the refresher training prior to providing RESEA services going forward. Completion Date: Estimated April 2025 Agency Contact: Jay Summers External Audit Manager PO Box 9046 Olympia, WA 98507-9046 (360) 529-6718 Joshua.Summers@esd.wa.gov

View Audit 306534

Finding 397185 (2023-006)

None 2023

State of Washington C/o Office of Financial Management

WA

Questioned Costs Allowable Costs / Cost Principles Eligibility § 200.1 § 200.410 § 200.516

Finding: The Employment Security Department made improper payments to ineligible beneficiaries of the Unemployment Insurance program. Questioned Costs: Assistance Listing # 17.225 17.225 COVID-19 Amount $603 Status: Corrective action not taken Corrective Action: The Department does not ...

Finding: The Employment Security Department made improper payments to ineligible beneficiaries of the Unemployment Insurance program. Questioned Costs: Assistance Listing # 17.225 17.225 COVID-19 Amount $603 Status: Corrective action not taken Corrective Action: The Department does not concur with the finding. The State Auditor’s Office (SAO) made the assertion that the Department incorrectly interpreted guidance in the Unemployment Insurance Program Letter (UIPL) No. 16-20 requiring claimants to provide proof of employment to receive Pandemic Unemployment Assistance (PUA) payments. However, the section cited by SAO was paragraph b(ii) which only lays out the requirements for establishing the respond-by dates for providing documentation for review. The deadline for responses is different depending on whether the PUA claim was filed before January 31, 2021, or on/after that date. This paragraph does not establish the requirements for payment or non-payment of PUA weeks. In our finding response, the Department cited section C.2 of the UIPL, which states: If, in that timeframe, the individual fails to provide documentation or fails to show good cause to have the deadline extended, an overpayment must be established for all of the weeks paid beginning with the week ending January 2, 2021. This is because the individual cannot be deemed ineligible for a week of unemployment ending before the date of enactment solely for failure to submit documentation. Therefore, the three cases identified by SAO should not be exceptions under this guidance. Further, the Department received guidance from the U.S. Department of Labor on January 11, 2021, which confirmed the proper methodology used by the Department. Completion Date: Not Applicable Agency Contact: Jay Summers External Audit Manager PO Box 9046 Olympia, WA 98507-9046 (360) 529-6718 Joshua.Summers@esd.wa.gov

View Audit 306534 Questioned Costs: $1

Finding 397170 (2023-003)

Significant Deficiency 2023

Dakota Plains Legal Services, Inc.

SD

Internal Control / Segregation of Duties Cash Management Eligibility

Legal Services Corporation FFAL #09-742018 Legal Services Corporation - Basic Field - General FFAL #09-742018 Legal Services Corporation - Basic Field - Native American Eligibility Significant Deficiency in Internal Control over Compliance and Noncompliance Condition: The auditor's testing detecte...

Legal Services Corporation FFAL #09-742018 Legal Services Corporation - Basic Field - General FFAL #09-742018 Legal Services Corporation - Basic Field - Native American Eligibility Significant Deficiency in Internal Control over Compliance and Noncompliance Condition: The auditor's testing detected two instances in which U.S. Citizen Attestation was not retained. Management's Response: All employees have received additional training on compliance procedures, and new employees will receive the same. All files being closed are now reviewed first for accuracy by the case handler of that file. The files are double checked by the office secretary. At the end of the quarter, all files are sent to compliance for a third review. Any needed corrections are noted by compliance and the file is then sent back to the office where it originated from to be corrected. Then the corrections to the file are reported back to compliance to verify that they have been made. All Legal Secretary staff have just completed a mandatory two-day in-person training session, which in large part covered this and other compliance related issues. By the end of June 2024, all case handlers will receive in-person training on compliance issues. The program has also started a new procedure where any client coming into an office is asked to complete an attestation statement which can be added to the client file if needed. Responsible Individuals: Dawn Marshall, Co-Compliance Officer, Kaeleigh Lundberg, Co-Compliance Officer, Tom Mortland, Executive Director, Lori Stanford, Deputy Director. Anticipated Completion Date: July 31, 2024.

View Audit 306525

Finding 397046 (2023-002)

None 2023

Ensign College

UT

Student Financial Aid Cash Management Eligibility

Management Views and Corrective Action Plan Year Ending December 31, 2023 Finding 2023-002 - Untimely Return of Title IV Requirements Grantor: U.S. Department of Education Program: Student Financial Assistance Cluster Assistance Listing#: 84.268, 84.063 Award Titles: Federal Direct Student Loan Pr...

Management Views and Corrective Action Plan Year Ending December 31, 2023 Finding 2023-002 - Untimely Return of Title IV Requirements Grantor: U.S. Department of Education Program: Student Financial Assistance Cluster Assistance Listing#: 84.268, 84.063 Award Titles: Federal Direct Student Loan Program, Federal Pell Grant Program Award Years: 7/2022 – 6/2024 Management agrees with the finding and proposes the following corrective action plan: Corrective Action Plan The College hired two new financial aid employees during the Fall 2023 semester. These employees will be responsible for monitoring student withdrawals and performing return of title IV fund calculations on a weekly basis to ensure all refunds transactions are processed timely and accurately. Additional training will be provided by Riley Niemand, Financial Aid Manager to ensure compliance with R2T4 regulations. Timing Riley Niemand is currently training these new employees on the return of title IV fund process. This training will be completed by September 1, 2024. Sincerely, S. Christopher Reitz Director of Financial Services and Controller creitz@ensign.edu 801-524-8109

View Audit 306421

Finding 396706 (2023-001)

Material Weakness 2023

The Harry and Heanette Weinberg Village Iii, Inc.

MD

Eligibility HUD Housing Programs

RESPONSE: The Franklin Johnston group has strict EIV policies and procedures in place. Although HUD requires quarterly reports, we require monthly reports for our Master Binder. Site teams are only permitted to pull the “By Head of Household Report” at the time of the recertification appointment. Th...

RESPONSE: The Franklin Johnston group has strict EIV policies and procedures in place. Although HUD requires quarterly reports, we require monthly reports for our Master Binder. Site teams are only permitted to pull the “By Head of Household Report” at the time of the recertification appointment. They do not pull 120 ,90 , 60 or 30 days in advance. The report is pulled at the time the recertification packet is completed. The site teams pull this report 90 days after a MI is submitted to TRACS. We pull this report 90 days that a resident receives a utility check as well. There are other EIV reports as it relates to specific tasks. All site teams members have been trained as it relates to this policy. In addition to this training all site teams are required to attend monthly EIV training.

View Audit 306335

Finding 396704 (2023-001)

Material Weakness 2023

The Harry and Jeanette Weinberg Woods, Inc.

MD

Eligibility HUD Housing Programs

RESPONSE: The Franklin Johnston group has strict EIV policies and procedures in place. Although HUD requires quarterly reports, we require monthly reports for our Master Binder. Site teams are only permitted to pull the “By Head of Household Report” at the time of the recertification appointment. Th...

RESPONSE: The Franklin Johnston group has strict EIV policies and procedures in place. Although HUD requires quarterly reports, we require monthly reports for our Master Binder. Site teams are only permitted to pull the “By Head of Household Report” at the time of the recertification appointment. They do not pull 120 ,90 , 60 or 30 days in advance. The report is pulled at the time the recertification packet is completed. The site teams pull this report 90 days after a MI is submitted to TRACS. We pull this report 90 days that a resident receives a utility check as well. There are other EIV reports as it relates to specific tasks. All site teams members have been trained as it relates to this policy. In addition to this training all site teams are required to attend monthly EIV training.

View Audit 306333

Finding 396702 (2023-001)

Material Weakness 2023

The Harry and Jeanette Weinberg House, Inc.

MD

Eligibility HUD Housing Programs

The Franklin Johnston group has strict EIV policies and procedures in place. Although HUD requires quarterly reports, we require monthly reports for our Master Binder. Site teams are only permitted to pull the “By Head of Household Report” at the time of the recertification appointment. They do not ...

The Franklin Johnston group has strict EIV policies and procedures in place. Although HUD requires quarterly reports, we require monthly reports for our Master Binder. Site teams are only permitted to pull the “By Head of Household Report” at the time of the recertification appointment. They do not pull 120 ,90 , 60 or 30 days in advance. The report is pulled at the time the recertification packet is completed. The site teams pull this report 90 days after a MI is submitted to TRACS. We pull this report 90 days that a resident receives a utility check as well. There are other EIV reports as it relates to specific tasks. All site teams members have been trained as it relates to this policy. In addition to this training all site teams are required to attend monthly EIV training.

View Audit 306332

Finding 396648 (2023-001)

Significant Deficiency 2023

Greenburgh Housing Authority

NY

HUD Housing Programs Eligibility Internal Control / Segregation of Duties

Auditee's Response and Planned Corrective Action: Recertification Checklist will be implemented immediately for use by the Section 8 Department. Planned Implementation Date of Corrective Action: 5/14/2024 Person Responsible for Corrective Action: Raju Abraham, Executive Director

View Audit 306245

Finding 396592 (2023-001)

Significant Deficiency 2023

Pennsylvania Association of Regional Food Banks

PA

Subrecipient Monitoring Eligibility Internal Control / Segregation of Duties

Corrective Action Plan Finding 2023-001: U.S. DEPARTMENT OF AGRICULTURE – Food Distribution Cluster Program Name: 10.565 USDA Commodity Supplemental Food Program Criteria or Specific Requirement: The lead agencies, who are subrecipients under the Federal Awards, are required to have clients si...

Corrective Action Plan Finding 2023-001: U.S. DEPARTMENT OF AGRICULTURE – Food Distribution Cluster Program Name: 10.565 USDA Commodity Supplemental Food Program Criteria or Specific Requirement: The lead agencies, who are subrecipients under the Federal Awards, are required to have clients sign the Form 502045-A CSFP Sub-Agency Monthly Participant Sign-in Sheet to self-declare program eligibility before food is disbursed. Issue and Cause: There were four instances out of 40 distributions tested where this sign off was not completed. Due to the hectic environment at the lead agencies during food distribution day, oversights have occurred when obtaining the required client signoff. Corrective Actions Taken or Planned: PARF has an extensive training process in place for lead agencies, in relation to grant award compliance requirements, which includes the provision of training manuals and monthly phone calls to review matters. In addition, PARF provides updates to the lead agencies as new or amended requirements are enacted. Further, PARF does periodic reviews of the lead agencies and completes the biennial review Form 502035 CSFP Management Evaluation. PARF will continue to reiterate the required signoff process with the lead agencies during phone calls, training session and reviews.

View Audit 306187

Finding 396576 (2023-001)

Material Weakness 2023

Senior Citizens Housing Development Corporation of Montgomery County

FL

HUD Housing Programs Eligibility Reporting

Oversight Agency for Audit, Senior Citizens Housing Development Corporation of Montgomery County, operating as Council House, 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...

Oversight Agency for Audit, Senior Citizens Housing Development Corporation of Montgomery County, operating as Council House, 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 8 Housing Assistance Payments Program, ALN 14.195 Recommendation: The Project should implement procedures to ensure all documentation related to applicants and tenants is properly executed and maintained. In addition, the manager verify eligibility by obtaining all required documents for potential tenants, maintain support for tenant income verification through the EIV system in a timely manner, and perform appropriate unit inspections. Action Taken: A new Community Manager was hired and is now on site and going through training on all HUD and EHDOC policies and procedures. For EIV reporting we have an alert in the computer system to notify managers of when the 90-day reports are due. Compliance is also sending out monthly email reminders to run all EIV reports. Moving forward compliance will review new move in files and recertification files for completeness and accuracy. If the audit Oversight Agency has questions regarding these plans, please call Irene Phillips at 954-835-9200. Sincerely yours, Irene Phillips CFO

View Audit 306145

Finding 396551 (2023-003)

None 2023

Monticello Cusd #25

IL

School Nutrition Programs Eligibility

39-074-0250-26 CORRECTIVE ACTION PLAN FOR CURRENT YEAR AUDIT FINDINGS Year Ending June 30, 2023 Corrective Action Plan Finding No.: 2023-_ 003__ Condition: The verification process was not performed. Plan: The District will complete the annual verification process ...

39-074-0250-26 CORRECTIVE ACTION PLAN FOR CURRENT YEAR AUDIT FINDINGS Year Ending June 30, 2023 Corrective Action Plan Finding No.: 2023-_ 003__ Condition: The verification process was not performed. Plan: The District will complete the annual verification process by November 15th and will report the results to ISBE by December 15th. Anticipated Date of Completion: 06/30/2024 Name of Contact Person: Adam Clapp Management Response: Management will implement the corrective action plan for the year ended June 30, 2024.

View Audit 306124

Finding 396416 (2023-003)

Significant Deficiency 2023

East River Legal Services Corporation

SD

Cash Management Eligibility Significant Deficiency

Finding 2023-003 Federal Agency Name: Legal Services Corporation Program Name: Legal Services Corporation – Basic Field Grant FFAL#: 09-542026 Finding Summary: Testing identified one instance where a case was improperly entered into Legal Server as no application was completed. Responsible Individ...

Finding 2023-003 Federal Agency Name: Legal Services Corporation Program Name: Legal Services Corporation – Basic Field Grant FFAL#: 09-542026 Finding Summary: Testing identified one instance where a case was improperly entered into Legal Server as no application was completed. Responsible Individuals: Lea Wroblewski, Executive Director. Corrective Action Plan: ERLS will train staff on application procedures, modify outreach procedures, and will not enter interested clients in Legal Server until an application is completed. Completion Date: May 2024

View Audit 305992

Finding 396392 (2023-005)

Material Weakness 2023

Hamtramck Public Schools

MI

Matching / Level of Effort / Earmarking Eligibility Material Weakness

2023-005 — Material Weakness and Material Noncompliance — Compliance Areas Documentation Person responsible for the corrective action: Jim Larson-Shidler, CFO Corrective action planned: The District created and hired a State & Federal Funding Specialist who works directly with the Business Office ...

2023-005 — Material Weakness and Material Noncompliance — Compliance Areas Documentation Person responsible for the corrective action: Jim Larson-Shidler, CFO Corrective action planned: The District created and hired a State & Federal Funding Specialist who works directly with the Business Office to monitor compliance with all grants. A new organization chart is being developed and recommended to the Board to create new positions in the Curriculum Department and hire open positions to monitor and comply with grant parameters. Anticipated completion date: June 30, 2024

View Audit 305967

Finding 396355 (2023-045)

Material Weakness 2023

State of Alaska

AK

Questioned Costs Eligibility Material Weakness

Finding: 2023-045 - Twenty-two of 60 LIHEAP applicant case files tested (37 percent) had eligibility errors. Some of the cases had more than one of the following errors: • Eight cases (13 percent) had the benefit amount incorrectly calculated based on incorrect data input by an eligibility technicia...

Finding: 2023-045 - Twenty-two of 60 LIHEAP applicant case files tested (37 percent) had eligibility errors. Some of the cases had more than one of the following errors: • Eight cases (13 percent) had the benefit amount incorrectly calculated based on incorrect data input by an eligibility technician (ET) in the Energy Community Online System. The errors resulted in overpayments or underpayments to beneficiaries. In three of the eight cases, system defects caused or contributed to the errors, which were not identified by ETs during processing. • Five cases (eight percent) lacked documentation supporting the income used by an ET to determine eligibility. • Six cases (10 percent) lacked documentation showing the applicant’s income was verified by an ET. • Four cases (seven percent) lacked proof of the applicant’s heating costs. • Five applications (eight percent) could not be located by DPA staff. • Four cases (seven percent) had incorrect income used by an ET when determining eligibility. The four errors did not impact the eligibility determination. Questioned Costs: $8,685 Assistance Listing Number: 93.568 Assistance Listing Title: 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 scheduled for implementation in FY2025. LIHEAP employee training is a standalone, online course. DPA’s training program is currently under review and upon completion of the review LIHEAP training will be strengthened to ensure statewide staff have adequate training in the program. DPA’s Project Management Office is implementing the Jira’s ticketing system to allow the Division to track, identify and correct system defects within the LIHEAP program. 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 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

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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

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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

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