Corrective Action Plans

Finding 403066 (2023-001)

Material Weakness 2023

MN

Procurement, Suspension & Debarment Eligibility

Name of contact person – Peter Krieger, Housing Development & Construction Director Corrective action – Management will implement the suspension and debarment testing procedures for all contracts as part of the vendor selection process going forward, and are in the process of updating the financial...

Name of contact person – Peter Krieger, Housing Development & Construction Director Corrective action – Management will implement the suspension and debarment testing procedures for all contracts as part of the vendor selection process going forward, and are in the process of updating the financial policies to include this language. Proposed completion date – Management will implement the above procedures immediately. The procurement policy will be within the Financial Policies that will be presented to the finance committee no later than July 2024 for recommendation of Board approval at the next Board meeting (no later than September 2024).

View Audit 310213

Finding 402900 (2023-001)

Significant Deficiency 2023

Mid-East Regional Housing Authority

NC

HUD Housing Programs Eligibility Reporting

Mid-East Regional Housing Authority Corrective Action Plan for the year ended September 30, 2023 Section II - Financial Statement Findings - None Section III - Federal Award Findings and Questioned Costs Finding 2023-001 Name of Contact Person: Lynn Alligood Executive Director Corrective Action: ...

Mid-East Regional Housing Authority Corrective Action Plan for the year ended September 30, 2023 Section II - Financial Statement Findings - None Section III - Federal Award Findings and Questioned Costs Finding 2023-001 Name of Contact Person: Lynn Alligood Executive Director Corrective Action: We will implement proper internal control procedures for the Housing Choice Voucher program eligibility requirements. Proposed Completion Date: Immediately

View Audit 310158

Finding 402867 (2023-101)

Material Weakness 2023

El Rio Santa Cruz Neighborhood Health Center, INC

AZ

Eligibility Internal Control / Segregation of Duties

Federal Award Findings and Questioned Costs: 2023-101 Reporting Recommendation: We recommend that the PRF Reports are reviewed and approved by a management team member who is not involved in the preparation, and has sufficient knowledge of the program's requirements. Action Taken: The Center concurs...

Federal Award Findings and Questioned Costs: 2023-101 Reporting Recommendation: We recommend that the PRF Reports are reviewed and approved by a management team member who is not involved in the preparation, and has sufficient knowledge of the program's requirements. Action Taken: The Center concurs and has implemented the recommendation. Contact Person: Controller Completion date: Fiscal year ending 2024.

View Audit 310074

Finding 402853 (2023-001)

Significant Deficiency 2023

New Jersey Turnpike Authority

NJ

Allowable Costs / Cost Principles Cash Management Eligibility § 200.303 § 200.403 § 200.406 § 200.430

Findings Related to the Financial Statements Reported in Accordance with Government Auditing Standards None Findings Related to Federal Awards 2023-001 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Federal Agency: U.S. Department of Homeland Security: Passed through the Sta...

Findings Related to the Financial Statements Reported in Accordance with Government Auditing Standards None Findings Related to Federal Awards 2023-001 Activities Allowed or Unallowed and Allowable Costs/Cost Principles Federal Agency: U.S. Department of Homeland Security: Passed through the State of New Jersey, Department of Law and Public Safety Program Titles and Assistance Listing Numbers (ALN): Disaster Grants – Public Assistance (Presidentially Declared Disasters) – ALN 97.036 Federal Grant Numbers: State of New Jersey pass-through number: UH1WX, Project Worksheet #1822 – Award Year 2023 (Application 553330) Contact Person: Donna Wilser, Deputy Executive Director, 732-750-5300 Corrective Action: Management agrees with the finding. We are committed to strengthening our processes to ensure that all physical timesheets related to FEMA-declared disaster events are properly maintained and readily accessible. To achieve this, we will implement enhanced procedures and controls to ensure full compliance with the Uniform Guidance requirements. Anticipated Completion Date: December 1st, 2024

View Audit 310037

Finding 402814 (2023-002)

Material Weakness 2023

Housing Authority of the City of Greenville

NC

HUD Housing Programs Subrecipient Monitoring Eligibility

Finding 2023-002 - Continuumof Care Tenant Files - Eligibility - Internal Control over Tenant Files - Noncomplianceand Material Weakness Corrective Action Plan: The Housing Authority of the City of Greenville (HACG) has implemented and/or will implement the follow ing by our fiscal year-end Septemb...

Finding 2023-002 - Continuumof Care Tenant Files - Eligibility - Internal Control over Tenant Files - Noncomplianceand Material Weakness Corrective Action Plan: The Housing Authority of the City of Greenville (HACG) has implemented and/or will implement the follow ing by our fiscal year-end September 30, 2024: a. Program Coordinators will maintain all Contin uum of Care Tenant files in individual file folders designated by special purpose voucher programs. All loosedocuments will be anchored in tenant files. b. An action plan has been developed for the Continuum of Care programs to ensure that all program files are HUD, State, and GHA compliant starting with October l, 2023, files through the current. c. Continuum of Care fiscal year 2024 (October 2023-September 2024) re exams and interim s will be caught up and complete as they become effective. All tenant files will be reviewed and compliant by FYE2024. d. All la te/overdue re-exams will be compliant by FYE2024. e. During FYE2024, the Deputy Executive Director/COOwill perform qualit y controls on all Continuum of Care tenant files processed each month prior to ini tialization c2_5th 3olh of each month). f. File checklist sheets will be placed in each file upon quality control review to be signed off by the Deputy Executive Director/COO. g. Additional training will be required and ongoing for Program Coordinators. h. Other internal control measures will be implemented to elim inate future audit findings. Person Responsible: Shanetta Moye, Deputy Executive Director/COO Anticipated Completion Date: September 30, 2024

View Audit 309996

Finding 402813 (2023-001)

Significant Deficiency 2023

Housing Authority of the City of Greenville

NC

HUD Housing Programs Subrecipient Monitoring Eligibility

Finding 2023-001 - Housing Choice Voucher Tenant Files - Eligibility - Internal Control over Tenant Files - Noncompliance andSignificant Deficiency Corrective Action Plan: The Housing Authority of the City of Greenville (HACG) has implemented and/or will implement the following by our fisca l year-...

Finding 2023-001 - Housing Choice Voucher Tenant Files - Eligibility - Internal Control over Tenant Files - Noncompliance andSignificant Deficiency Corrective Action Plan: The Housing Authority of the City of Greenville (HACG) has implemented and/or will implement the following by our fisca l year-end September 30, 2024: a. Hous ing Choice Voucher tenant files will be reviewed and quality controlled each mo nth prior to initiali za tio n (25t 11- 30 111 of each month) by the Deputy Executive Director/COO. b. An action pla n has been develo ped for the Housing Choice Voucher department to ensure that all Housing Choice Voucher files are HUD and GHA compliant starting with October 1, 2023 files through the cun-e nt. c. Hous ing Choice Voucher calendar-year 2024 (October 2023-September 2024) re-exams are substantially complete, as they become effective. All tenant files will be reviewedand HUD-co mpliant by FYE2024. d. During FYE2024, the Deputy Executive Director/COO will perform 40% quality controls of the monthly re-exams processed by the Housing Specialists. e. File checklist sheets will be placed in each file upon quality control review to be signed off by the Deputy Executive Director/COO. f. Additional training has been and will be made available as necessary. g. Other interna l control measures will be implemented as deemed necessary by the Deputy Executive Director/COO, to eliminate future audit findings. Person Responsible: Shanetta Moye, Deputy Executive Director/COO Anticipated Completion Date: September 30, 2024

View Audit 309996

Finding 402778 (2023-014)

Material Weakness 2023

State of Michigan

MI

Cash Management Eligibility Material Weakness § 200.516

Finding 2023-014 Medicaid Cluster, ALN 93.775, 93.777, and 93.778 and Children's Health Insurance Program, ALN 93.767 - Expenditure Processing for Medical Payments Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS has been working since 2018 to ensure correct eligibil...

Finding 2023-014 Medicaid Cluster, ALN 93.775, 93.777, and 93.778 and Children's Health Insurance Program, ALN 93.767 - Expenditure Processing for Medical Payments Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS has been working since 2018 to ensure correct eligibility classifications in Bridges at the time of payment and a system change was implemented in April 2021 to correct the issue. All new cases are correctly routed. MDHHS originally expected to have all cases corrected at the end of the PHE unwind (July 2024), however, due to some of the mitigation strategies that CMS developed to ensure children did not lose eligibility, not all cases had their coding updated when they were renewed. MDHHS expects that all existing cases will be updated by May 2025, as MDHHS completes renewals for existing cases. MDHHS identified and updated its manual process of transferring expenditures from the Medicaid Cluster to the Children’s Health Insurance Program (CHIP) in June 2021; and will continue this manual process, on a quarterly basis, by completing a summary-level adjustment determined by analyzing the Community Health Automated Medicaid Processing System (CHAMPS) payment data and Bridges eligibility data until all existing cases have been updated. Anticipated Completion Date May 2025 Responsible Individual(s) Brant Cole, MDHHS Logan Dreasky, MDHHS Erin Emerson, MDHHS

View Audit 309982

Finding 402762 (2023-057)

Material Weakness 2023

State of Michigan

MI

Questioned Costs Eligibility Subrecipient Monitoring § 200.516

Finding 2023-057 Low-Income Home Energy Assistance, ALN 93.568 - Eligibility Determinations Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS implemented quarterly case reads beginning in fiscal year 2023, and during April 2023, MDHHS began monthly meetings with BSCs ...

Finding 2023-057 Low-Income Home Energy Assistance, ALN 93.568 - Eligibility Determinations Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS implemented quarterly case reads beginning in fiscal year 2023, and during April 2023, MDHHS began monthly meetings with BSCs to discuss common errors, answer questions, provide guidance, and on a quarterly basis discuss the results of the SER case reads. In addition, based on the results of the quarterly case reads, MDHHS updated SER policy on October 1, 2023 to require additional verification sources. MDHHS will continue to communicate with BSCs and local offices regarding the requirements to obtain adequate verification and maintain sufficient documentation to support SER processing. MDHHS will also continue to provide direct SER guidance and clarification through the SER mailbox. Anticipated Completion Date Ongoing Responsible Individual(s) Nicole Denson-Sogbaka, MDHHS Kent Schulze, MDHHS Julie McLaughlin, MDHHS Nick Sakon, MDHHS Erich Holzhausen, MDHHS

View Audit 309982 Questioned Costs: $1

Finding 402761 (2023-056)

Significant Deficiency 2023

State of Michigan

MI

Questioned Costs Eligibility § 200.516

Finding 2023-056 Low-Income Home Energy Assistance, ALN 93.568 - Client Benefits in Excess of Fiscal Year Cap Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS will continue to provide guidance to the local MDHHS offices and BSCs related to the processing of State Eme...

Finding 2023-056 Low-Income Home Energy Assistance, ALN 93.568 - Client Benefits in Excess of Fiscal Year Cap Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS will continue to provide guidance to the local MDHHS offices and BSCs related to the processing of State Emergency Relief (SER) applications. MDHHS developed job aids and trainings that were distributed to local MDHHS offices and BSCs and added to the LIHEAP SharePoint site for reference during May 2024. Anticipated Completion Date Completed Responsible Individual(s) Nicole Denson-Sogbaka, MDHHS Kent Schulze, MDHHS Julie McLaughlin, MDHHS Nick Sakon, MDHHS Erich Holzhausen, MDHHS

View Audit 309982 Questioned Costs: $1

Finding 402751 (2023-052)

Material Weakness 2023

State of Michigan

MI

Questioned Costs Allowable Costs / Cost Principles Eligibility

Finding 2023-052 Refugee and Entrant Assistance State/Replacement Designee Administered Programs, ALN 93.566 - Assistance to Ineligible Refugees Management Views LEO and MDHHS agree with the finding. Planned Corrective Action For part a., MDHHS will issue a memo to BSCs and local offices and provi...

Finding 2023-052 Refugee and Entrant Assistance State/Replacement Designee Administered Programs, ALN 93.566 - Assistance to Ineligible Refugees Management Views LEO and MDHHS agree with the finding. Planned Corrective Action For part a., MDHHS will issue a memo to BSCs and local offices and provide training to local office staff regarding the requirements to maintain sufficient documentation to support Refugee and Entrant Assistance State/Replacement Designee Administered Programs eligibility. For part b., MDHHS corrected the reporting defect and properly adjusted the accounting records. MDHHS already had a process in place to identify the reporting defect and make necessary accounting adjustments. MDHHS will ensure that accounting adjustments are prioritized for any future reporting defects. Anticipated Completion Date a. September 30, 2024 b. Completed Responsible Individual(s) a. Mariah Schaefer, MDHHS b. Trish Bouck, MDHHS

View Audit 309982 Questioned Costs: $1

Finding 402741 (2023-050)

Significant Deficiency 2023

State of Michigan

MI

Eligibility Special Tests & Provisions Reporting

Finding 2023-050 Temporary Assistance for Needy Families, ALN 93.558 - Child Support Non-Cooperation Management Views MDHHS disagrees with 4 of 5 exceptions identified. The MDHHS Bridges technical team reviewed each cited case and determined that Bridges was functioning as intended for four cases i...

Finding 2023-050 Temporary Assistance for Needy Families, ALN 93.558 - Child Support Non-Cooperation Management Views MDHHS disagrees with 4 of 5 exceptions identified. The MDHHS Bridges technical team reviewed each cited case and determined that Bridges was functioning as intended for four cases identified because each case was in a non-ongoing mode at the time the automated interface occurred. A case is placed into this status if the client circumstances have changed for any MDHHS program within Bridges and the case requires a redetermination. TANF policy cannot mandate Bridges to change the non-ongoing mode because each impacted program is required to be certified prior to changing the status. MDHHS policy does not mandate a specific length of time that a case can be in a non-ongoing status. The results of the redetermination can impact the client’s non-cooperation status and therefore the client should not be sanctioned until the certification by all programs is complete. For two of the cases, the client was appropriately sanctioned after the case review was complete and for the other two cases, the client was determined to be in compliance once the case was removed from the non-going status mode. Planned Corrective Action The MDHHS Bridges technical team will follow the Departmental Work Intake Process to prioritize the identification of potential system modifications that may be needed to help ensure that Bridges is appropriately applying the one-month sanction period for child support non-cooperation. After identifying potential solutions, the MDHHS Bridges technical team will report their findings to MDHHS ESA policy staff and determine the best solution for remediation. Anticipated Completion Date August 31, 2024 Responsible Individual(s) Kenton Schulze, MDHHS Brian Sanborn, MDHHS

View Audit 309982

Finding 402739 (2023-048)

Significant Deficiency 2023

State of Michigan

MI

Allowable Costs / Cost Principles Eligibility

Finding 2023-048 Temporary Assistance for Needy Families, ALN 93.558 - Inappropriate TANF-Funded Adoption Subsidy Rate Management Views MDHHS disagrees with the finding. Although the appropriate negotiated rate was not used to calculate the initial payment, MDHHS disagrees that a deficiency exists....

Finding 2023-048 Temporary Assistance for Needy Families, ALN 93.558 - Inappropriate TANF-Funded Adoption Subsidy Rate Management Views MDHHS disagrees with the finding. Although the appropriate negotiated rate was not used to calculate the initial payment, MDHHS disagrees that a deficiency exists. MDHHS ensures that the appropriate negotiated rate is used during an annual review process that occurs each year and is based on the child’s birth month. The annual report process includes a thorough payment history review for each adoption assistance case to ensure payments are issued accurately. This involves verifying cases are paid at the correct rate and identifying any overpayments that occurred for adoption assistance agreements that were entered into between January 21, 2014 through June 18, 2015, prior to the MiSACWIS system update to automate the clothing allowance offset. The overpayment noted in the finding was identified by the auditor during the month prior to MDHHS’s annual review process, which was scheduled for April 2024, and the negotiated rate for the month the child turned 13 was manually corrected and recouped by MDHHS in March 2024. MDHHS believes this is a timing issue and disagrees that a deficiency exists. Planned Corrective Action MDHHS disagrees with the finding and does not intend to take further action. Anticipated Completion Date Not applicable Responsible Individual(s) Kathonya Rice, MDHHS

View Audit 309982

Finding 402738 (2023-047)

Significant Deficiency 2023

State of Michigan

MI

Questioned Costs Allowable Costs / Cost Principles Eligibility § 200.516

Finding 2023-047 Temporary Assistance for Needy Families, ALN 93.558 - Non-Financial Eligibility Documentation Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS’s ESA will continue to emphasize the importance of maintaining eligibility documentation through ongoing st...

Finding 2023-047 Temporary Assistance for Needy Families, ALN 93.558 - Non-Financial Eligibility Documentation Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS’s ESA will continue to emphasize the importance of maintaining eligibility documentation through ongoing staff training and a memorandum sent to local offices and Eligibility Specialists. ESA leadership will reach out to managers of individual Eligibility Specialists regarding issues identified with the Family Automated Screening Tool and Family Self-Sufficiency Plan completion and verification of school enrollment and provide additional guidance as needed. Anticipated Completion Date August 31, 2024 Responsible Individual(s) Brian Sanborn, MDHHS Kenton Schulze, MDHHS

View Audit 309982 Questioned Costs: $1

Finding 402736 (2023-045)

Significant Deficiency 2023

State of Michigan

MI

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Eligibility

Finding 2023-045 Temporary Assistance for Needy Families, ALN 93.558 - MiSACWIS Security Management and Access Controls Management Views MDHHS agrees with the finding. Planned Corrective Action For parts a. and c., MDHHS will continue to provide training for local office security coordinators (LOS...

Finding 2023-045 Temporary Assistance for Needy Families, ALN 93.558 - MiSACWIS Security Management and Access Controls Management Views MDHHS agrees with the finding. Planned Corrective Action For parts a. and c., MDHHS will continue to provide training for local office security coordinators (LOSCs) via quarterly webinars to emphasize the appropriate procedures for granting access, reviewing, and comparing access. All new information related to security access is presented to the LOSCs during the webinars and one-on-one assistance is available as needed for additional support. For part b., MDHHS currently has a process in place to review the user narrative describing the incompatible role exceptions within the DSA Michigan Statewide Automated Child Welfare Information System (MiSACWIS) request as part of the approval process. MDHHS will continue to work on adding an incompatible role form in the DSA MiSACWIS request with automated routing for appropriate approval. Anticipated Completion Date a. and c. Corrective action is ongoing. b. MDHHS has not yet determined an anticipated completion date because implementation is dependent on funding, approval, and prioritization of other proposed system changes. Responsible Individual(s) Alana Lowe, MDHHS Deon Nelson, MDHHS

View Audit 309982

Finding 402722 (2023-044)

Significant Deficiency 2023

State of Michigan

MI

Special Tests & Provisions Procurement, Suspension & Debarment Eligibility

Finding 2023-044 Immunization Cooperative Agreements, ALN 93.268 - Control, Accountability, and Safeguarding of Vaccine and Record of Immunization Management Views MDHHS disagrees with the finding. Site visits did not resume for all Vaccines for Children (VFC) providers until the July 1, 2022 throu...

Finding 2023-044 Immunization Cooperative Agreements, ALN 93.268 - Control, Accountability, and Safeguarding of Vaccine and Record of Immunization Management Views MDHHS disagrees with the finding. Site visits did not resume for all Vaccines for Children (VFC) providers until the July 1, 2022 through June 30, 2023 review cycle because the Centers for Disease Control and Prevention (CDC) allowed jurisdictions to temporarily suspend these visits during the COVID-19 pandemic that ended during May 2023. MDHHS previously reached out to the CDC for clarification on conducting site visits and was informed that site visit activities could be suspended based on COVID-19 activity in MDHHS’s jurisdiction and capacity within MDHHS’s organization. The site visits identified in the finding were included in the backlog of suspended site visits that MDHHS continued to work through during the audit period. Planned Corrective Action MDHHS sent reminders of the VFC program requirements and program guidelines to MDHHS field representatives and local health department (LHD) site reviewers, including those overseeing VFC providers in need of compliance site visits. In order to remain compliant with program requirements, the MDHHS VFC team issued expectation dates for completing site visits and monitored site visit progress. MDHHS communicated this information via monthly Vaccine Management Calls, training sessions, and email notifications. MDHHS sent each LHD a letter which contained a list of VFC providers that remained non-compliant after June 30, 2023, with a short extension to complete needed site visits by August 24, 2023. All overdue site visits were completed as of December 31, 2023. Anticipated Completion Date Completed Responsible Individual(s) Heather Barnes, MDHHS Heidi Loynes, MDHHS Ryan Malosh, MDHHS

View Audit 309982

Finding 402643 (2023-039)

Significant Deficiency 2023

State of Michigan

MI

Questioned Costs Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles § 200.516

Finding 2023-039 Medicaid Cluster, ALN 93.775, 93.777, and 93.778 - Ineligible HHP Payments Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS presented the audit findings and planned corrective action to local office workers, managers, and staff at an Adult Services ...

Finding 2023-039 Medicaid Cluster, ALN 93.775, 93.777, and 93.778 - Ineligible HHP Payments Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS presented the audit findings and planned corrective action to local office workers, managers, and staff at an Adult Services statewide meeting during March 2024. During the meeting, MDHHS reviewed recoupment policies and procedures and the importance of reviewing work for accuracy. MDHHS issued an Adult Services Notification to managers and directors during April 2024 informing them of the recent recoupment audit findings and reminding local office management of the expectation to review hospitalization reports to ensure timely and accurate action is taken. Anticipated Completion Date Completed Responsible Individual(s) Elaina Brown-Mingo, MDHHS Michelle Martin, MDHHS

View Audit 309982 Questioned Costs: $1

Finding 402642 (2023-038)

Significant Deficiency 2023

State of Michigan

MI

Questioned Costs Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles § 200.516

Finding 2023-038 Medicaid Cluster, ALN 93.775, 93.777, and 93.778 - Payments on Behalf of Ineligible Beneficiaries Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS developed a prior report review process to ensure impacted records that do not get corrected with the C...

Finding 2023-038 Medicaid Cluster, ALN 93.775, 93.777, and 93.778 - Payments on Behalf of Ineligible Beneficiaries Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS developed a prior report review process to ensure impacted records that do not get corrected with the CHAMPS retrigger are addressed. MDHHS continues to work with DTMB on the underlying issues in Bridges causing synchronization problems between Bridges and CHAMPS, as well as developing mitigation strategies to temporarily address the overpayment concerns while the more permanent system solutions are developed. MDHHS expects all remaining synchronization issues to be resolved once the remaining larger system changes are implemented in March 2025. Anticipated Completion Date March 31, 2025 Responsible Individual(s) Jamy Hengesbach, MDHHS

View Audit 309982 Questioned Costs: $1

Finding 402638 (2023-016)

Significant Deficiency 2023

State of Michigan

MI

Eligibility HUD Housing Programs Reporting

Finding 2023-016 Medicaid Cluster, ALN 93.775, 93.777, and 93.778 and Children's Health Insurance Program, ALN 93.767 - Provider Eligibility Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS will amend the managed care contracts to require that signatures are obtained...

Finding 2023-016 Medicaid Cluster, ALN 93.775, 93.777, and 93.778 and Children's Health Insurance Program, ALN 93.767 - Provider Eligibility Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS will amend the managed care contracts to require that signatures are obtained on the Provider Screening Information Collection Tool (PSICT) forms and returned timely when contracts and waivers are renewed and extended. MDHHS expects that signatures will be obtained on the PSICT forms effective September 2024 for the fiscal year 2025 contract cycle. MDHHS continues to send an annual reminder to the managed care entities to report any change in ownership to MDHHS within 35 days. In addition, MDHHS incorporated a review of provider agreements as part of their monitoring process conducted for all MI Choice Waiver Program (MI Choice) entities. MDHHS’s review of fiscal year 2023 provider agreements for MI Choice entities will be completed by September 30, 2024, and will be ongoing. MDHHS also added language to MI Choice contracts that requires PSICT forms to be returned by September 1 each year and reminders will be sent during August 2024 to complete the tools and submit to MDHHS by this deadline. Anticipated Completion Date September 30, 2024 Responsible Individual(s) Elizabeth Gallagher, MDHHS Latina McCausey, MDHHS

View Audit 309982

Finding 402637 (2023-015)

Significant Deficiency 2023

State of Michigan

MI

Eligibility Internal Control / Segregation of Duties

Finding 2023-015 CHAMPS Eligibility Interface Errors Management Views MDHHS agrees with the finding. Planned Corrective Action Bridges is the system of record for eligibility and produces reports with potential duplicate records for local office staff to review. In addition, CHAMPS is currently de...

Finding 2023-015 CHAMPS Eligibility Interface Errors Management Views MDHHS agrees with the finding. Planned Corrective Action Bridges is the system of record for eligibility and produces reports with potential duplicate records for local office staff to review. In addition, CHAMPS is currently designed to reject potential duplicate records to prevent duplicate payments for the same individuals that already exist in CHAMPS and places these records on a CHAMPS report for review. These two reports could potentially contain the same duplicate records identified by both CHAMPS and Bridges. MDHHS central office will develop a process to reconcile the rejected records identified on the CHAMPS and Bridges reports and ensure that MDHHS is appropriately reviewing those records and making any necessary corrections. Anticipated Completion Date December 2024 Responsible Individual(s) Jamy Hengesbach, MDHHS Mariah Schaefer, MDHHS

View Audit 309982

Finding 402635 (2023-013)

Material Weakness 2023

State of Michigan

MI

Questioned Costs Eligibility Material Weakness § 200.516

Finding 2023-013 Medicaid Cluster, ALN 93.775, 93.777, and 93.778 and Children's Health Insurance Program, ALN 93.767 - Beneficiary Eligibility Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS continues to pursue other data sources for income verification and other s...

Finding 2023-013 Medicaid Cluster, ALN 93.775, 93.777, and 93.778 and Children's Health Insurance Program, ALN 93.767 - Beneficiary Eligibility Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS continues to pursue other data sources for income verification and other system enhancements so that all case data is available to all reviewers. In addition, MDHHS will continue to determine where additional training or enhancements to training are needed to ensure eligibility is accurately determined and documentation is properly maintained and loaded to the electronic case file. Once this is completed, MDHHS will develop mandatory training protocols for eligibility workers. Lastly, MDHHS has been working since 2018 to ensure correct eligibility classifications in Bridges at the time of payment and a system change was implemented in April 2021 to correct the issue. All new cases are being correctly routed. MDHHS originally expected to have all cases corrected at the end of the public health emergency (PHE) unwind (July 2024), however, due to some of the mitigation strategies that the Centers for Medicare and Medicaid Services (CMS) developed to ensure children did not lose eligibility, not all cases had their coding updated when they were renewed. MDHHS expects that all existing cases will be updated by May 2025. Anticipated Completion Date May 2025 Responsible Individual(s) Logan Dreasky, MDHHS Brant Cole, MDHHS Mariah Schaefer, MDHHS

View Audit 309982 Questioned Costs: $1

Finding 402632 (2023-005)

Significant Deficiency 2023

State of Michigan

MI

Eligibility Internal Control / Segregation of Duties

Finding 2023-005 CHAMPS General Controls Management Views Although MDHHS and DTMB delayed the implementation of the State of Michigan (SOM) tailored configurations, DTMB disagrees that during the audit period the system contained potentially vulnerable database configurations and disagrees that DTM...

Finding 2023-005 CHAMPS General Controls Management Views Although MDHHS and DTMB delayed the implementation of the State of Michigan (SOM) tailored configurations, DTMB disagrees that during the audit period the system contained potentially vulnerable database configurations and disagrees that DTMB cannot ensure the security of the data. DTMB has implemented and continues to implement the manufacturer’s recommendations regarding security configurations and performs regular database and operating system patching. Additionally, the databases reside in restricted trusted internal security zones, protected by firewalls, which are specific to each application and database, in conjunction with intrusion protection, antivirus software, and SOM standard security safeguards. Planned Corrective Action DTMB will implement the SOM tailored configurations by July 31, 2024. Anticipated Completion Date July 31, 2024 Responsible Individual(s) Nathan Buckwalter, DTMB

View Audit 309982

Finding 402547 (2023-026)

Significant Deficiency 2023

State of Michigan

MI

Allowable Costs / Cost Principles Cash Management Eligibility § 200.303

Finding 2023-026 Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027 - Grant Reimbursement Approval Procedures Management Views EGLE agrees with the finding. Planned Corrective Action EGLE’s Water Resources Division’s Administration staff reviewed the existing process with staff conducti...

Finding 2023-026 Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027 - Grant Reimbursement Approval Procedures Management Views EGLE agrees with the finding. Planned Corrective Action EGLE’s Water Resources Division’s Administration staff reviewed the existing process with staff conducting the administrative review to ensure the technical review will be completed in advance of making any payment. If Administration staff have received a request for payment without the technical review, Administration staff will forward all documents received to the project manager to obtain the technical review. Once the technical review has been completed, Administration staff will conduct the administrative review and process the payment request. Additionally, EGLE subsequently reviewed the reimbursement request noted in the finding to ensure that the cumulative totals requested have been for projects that are consistent with the grant award. Anticipated Completion Date Completed Responsible Individual(s) Phil Argiroff, EGLE Amy Hicks, EGLE

View Audit 309982

Finding 402536 (2023-058)

Material Weakness 2023

State of Michigan

MI

Questioned Costs Allowable Costs / Cost Principles Eligibility

Finding 2023-058 Unemployment Insurance, ALN 17.225 See Department of Labor and Economic Opportunity, Unemployment Insurance Agency - Unemployment Compensation Fund, Report on Expenditure of Federal Awards, Year Ended September 30, 2023, Corrective Action Plan, Finding 2023-001.

View Audit 309982 Questioned Costs: $1

Finding 402526 (2023-022)

Material Weakness 2023

State of Michigan

MI

Eligibility Allowable Costs / Cost Principles Material Weakness § 200.516

Finding 2023-022 Pandemic EBT Food Benefits, ALN 10.542 - Lack of Documentation for School Modality Data Reviews Management Views MDHHS disagrees that not formally documenting the review details on the log rises to the level of a material weakness and material noncompliance. MDHHS selects a sampl...

Finding 2023-022 Pandemic EBT Food Benefits, ALN 10.542 - Lack of Documentation for School Modality Data Reviews Management Views MDHHS disagrees that not formally documenting the review details on the log rises to the level of a material weakness and material noncompliance. MDHHS selects a sample of schools that submitted data and verifies the accuracy of Pandemic EBT (P-EBT) school modality data reported, documenting the schools reviewed within a log. Following the written business process, P-EBT staff first identify public information available to verify the school’s modality data such as the school’s calendar or news articles, and then reach out to school administration if public information is not available. If additional steps are required to reconcile the data, P-EBT staff document the support and results, sign off on the reconciliation, and forward to a supervisor for review. For this review period, no discrepancies were identified between what the school reported, and school websites. Since no discrepancies were noted, staff verbally communicated the review results to the manager and the log of sample items reviewed were kept within a shared drive. Planned Corrective Action MDHHS has no corrective action planned at this time as P-EBT benefit issuance ended as of May 11, 2023. No additional benefits will be issued in fiscal year 2024. Anticipated Completion Date Not applicable Responsible Individual(s) Kathy Cornell, MDHHS

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Finding 402477 (2023-021)

Material Weakness 2023

State of Michigan

MI

Special Tests & Provisions Procurement, Suspension & Debarment Cash Management § 200.516

Finding 2023-021 SNAP Cluster, ALN 10.551 and 10.561 - EBT Reconciliations Management Views MDHHS disagrees that a material weakness and material noncompliance exist. MDHHS federal reporting conducts a daily reconciliation of federal draws and authorizations to retailers based on vendor EBT reports...

Finding 2023-021 SNAP Cluster, ALN 10.551 and 10.561 - EBT Reconciliations Management Views MDHHS disagrees that a material weakness and material noncompliance exist. MDHHS federal reporting conducts a daily reconciliation of federal draws and authorizations to retailers based on vendor EBT reports. In addition, MDHHS conducts a monthly reconciliation between Bridges, Bridges data warehouse, and vendor EBT reports using daily data to ensure the client information in Bridges and Bridges data warehouse is accurate. The monthly reconciliation process does not impact the federal draw because the daily reconciliation of the vendor EBT report is used for this purpose. MDHHS provided detailed and accurate descriptions of MDHHS daily and monthly EBT reconciliations to the designated federal awarding agency contacts at the United States Department of Agriculture Food and Nutrition Service Agency that are familiar with MDHHS processes and received confirmation that the current reconciliation processes in place are sufficient to comply with federal regulations. Planned Corrective Action MDHHS disagrees with the finding and does not intend to take further action. Anticipated Completion Date Not applicable Responsible Individual(s) Sara Gross, MDHHS

View Audit 309982

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