Corrective Action Plans

Finding 567920 (2024-014)

Significant Deficiency 2024

AL

Reporting Internal Control / Segregation of Duties

The City does not concur. The City requested supporting documentation to verify department head approval was not obtained and it was not provided by the auditors. The City is unable to respond or correct a finding unless it has the details related to any audit issues.

View Audit 360260

Finding 567911 (2024-001)

Material Weakness 2024

City of Livonia, Michigan

MI

Cash Management Material Weakness Period of Performance § 200.303

Finding Number: 2024-001 Condition: The City lacked adequate controls to verify that expenditures charged to the grant were incurred within the proper period of performance. Transactions were processed without sufficient review or procedures around the period of performance, resulting in expenditur...

Finding Number: 2024-001 Condition: The City lacked adequate controls to verify that expenditures charged to the grant were incurred within the proper period of performance. Transactions were processed without sufficient review or procedures around the period of performance, resulting in expenditures being charged from outside the allowable timeframe. Planned Corrective Action: The City has worked with the State to identify expenses outside the period of performance. The City has sent the money back to the State that was before the performance start date. All balances are properly stated as of November 30. 2024. Contact person responsible for corrective action: Connie Kumpula Anticipated Completion Date: 5/23/2025

View Audit 360257

Finding 567908 (2024-004)

Material Weakness 2024

Disability Rights South Dakota

SD

Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Finding No. 2024-004: Financial Statement Preparation Responsible Individuals: Ona Arnold, Director of Operations and Finance Corrective Action Plan: The Organization will establish and maintain documentation to support in-kind/matching balances. Anticipated Completion Date: September 30, 2025

View Audit 360252

Finding 567893 (2024-005)

Significant Deficiency 2024

Hips

DC

Procurement, Suspension & Debarment Eligibility Reporting

Views of Responsible Officials: Prior to receiving this finding in the prior year, HIPS was not in the practice of saving documentation of financial or programmatic reporting submission. Staff responsible for submissions are now documenting submission of reports as of 2024. HIPS Finance Manager has ...

Views of Responsible Officials: Prior to receiving this finding in the prior year, HIPS was not in the practice of saving documentation of financial or programmatic reporting submission. Staff responsible for submissions are now documenting submission of reports as of 2024. HIPS Finance Manager has been tasked with checking all spreadsheet calculations prior to submissions of financial reporting.

View Audit 360239

Finding 567892 (2024-004)

Significant Deficiency 2024

Hips

DC

Allowable Costs / Cost Principles Reporting Matching / Level of Effort / Earmarking

Views of Responsible Officials: This deficiency was noted internally even before the auditors flagged it in April 2024. Effective April 2024, the allocation of salaries and wages to different grants was transferred back to the Finance Manager who has more information regarding the grants timing, emp...

Views of Responsible Officials: This deficiency was noted internally even before the auditors flagged it in April 2024. Effective April 2024, the allocation of salaries and wages to different grants was transferred back to the Finance Manager who has more information regarding the grants timing, employees involved, % of time spent et al. In addition, the salaries and wages allocation is now a prerequisite for the invoicing process every month. HIPS have already seen significant improvements in both accuracy in seeking salaries and wages reimbursement as well as in wages reconciliations against paychex reports. COLA adjustments will be recorded more accurately and approval documented. As of 2024, HIPS has also updated our HR policy to provide written documentation by the Operations Manager of COLA increases to each staff member when they are implemented.

View Audit 360239

Finding 567886 (2024-002)

Material Weakness 2024

Housing Authority of the City of Hoboken

NJ

HUD Housing Programs Procurement, Suspension & Debarment Material Weakness

View of Responsible Officials and Corrective Actions: The following steps have been and are being taken regarding tenant certifications: 1. We issued a Request for Proposals for a third-party Contractor to perform all recertifications. We intend to award this Contract in July 2025. 2. All Manager...

View of Responsible Officials and Corrective Actions: The following steps have been and are being taken regarding tenant certifications: 1. We issued a Request for Proposals for a third-party Contractor to perform all recertifications. We intend to award this Contract in July 2025. 2. All Managers and assistant Managers will use the third-party Contractor to learn proper recertification and documentation procedures.

View Audit 360230

Finding 567882 (2024-057)

Significant Deficiency 2024

State of Michigan

MI

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Finding 2024-057 Disaster Grants - Public Assistance (Presidentially Declared Disasters), ALN 97.036 - FFATA Reporting Management Views MSP agrees with the finding. The exception occurred due to an oversight during the transition to a new grant system. MSP immediately filed the report upon identifi...

Finding 2024-057 Disaster Grants - Public Assistance (Presidentially Declared Disasters), ALN 97.036 - FFATA Reporting Management Views MSP agrees with the finding. The exception occurred due to an oversight during the transition to a new grant system. MSP immediately filed the report upon identification. Planned Corrective Action MSP will review and update procedures for additional monitoring of the FFATA reporting process. Anticipated Completion Date September 30, 2025 Responsible Individual(s) Penny Burger, MSP

View Audit 360209

Finding 567848 (2024-052)

Material Weakness 2024

State of Michigan

MI

Subrecipient Monitoring Material Weakness Reporting § 200.514

Finding 2024-052 Refugee and Entrant Assistance State/Replacement Designee Administered Programs, ALN 93.566 - FFATA Reporting Management Views LEO agrees with the finding. Planned Corrective Action The LEO Finance Division updated its FFATA procedure effective March 2025 and has been working to c...

Finding 2024-052 Refugee and Entrant Assistance State/Replacement Designee Administered Programs, ALN 93.566 - FFATA Reporting Management Views LEO agrees with the finding. Planned Corrective Action The LEO Finance Division updated its FFATA procedure effective March 2025 and has been working to correct the inaccurate FFATA reporting for the Refugee and Entrant Assistance State/Replacement Designee Administered Programs subawards. All of LEO’s open subawards are reported correctly in SAM and LEO completed corrections to the closed subawards in April 2025. Going forward, LEO will ensure that future subawards are reported both accurately and timely in accordance with FFATA requirements. Anticipated Completion Date Completed Responsible Individual(s) Heidi Parker, LEO

View Audit 360209

Finding 567835 (2024-044)

Significant Deficiency 2024

State of Michigan

MI

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

Finding 2024-044 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 part a., MDHHS currently has a process in place to review the user narrative describing the incomp...

Finding 2024-044 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 part a., 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. MDHHS anticipates completion of corrective action by October 30, 2025. For part b., MDHHS will evaluate the current DSA timelines for generation of access renewal and access drop requests and implement any necessary changes by September 30, 2025. MDHHS will continue to provide training for 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. Anticipated Completion Date a. October 30, 2025 b. September 30, 2025 Responsible Individual(s) Alana Lowe, MDHHS Deon Nelson, MDHHS

View Audit 360209

Finding 567755 (2024-007)

Significant Deficiency 2024

State of Michigan

MI

Eligibility Internal Control / Segregation of Duties

Finding 2024-007 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, the Community Health A...

Finding 2024-007 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, the Community Health Automated Medicaid Processing System (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. As part of the Departmental Work Intake Process for prioritization, MDHHS submitted a work request during January 2023 for a Bridges system modification that would allow data from the Bridges reports to be exported to the Bridges data warehouse and MDHHS is currently working with DTMB to obtain access to the data. 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 September 30, 2025 Responsible Individual(s) Jamy Hengesbach, MDHHS

View Audit 360209

Finding 567706 (2024-030)

Significant Deficiency 2024

State of Michigan

MI

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting § 200.302

Finding 2024-030 Rehabilitation Services Vocational Rehabilitation Grants to States, ALN 84.126 - Accuracy of Financial Reports Management Views LEO agrees with the finding. Planned Corrective Action The LEO Finance Division will implement the following: 1. Improvements to documented procedures f...

Finding 2024-030 Rehabilitation Services Vocational Rehabilitation Grants to States, ALN 84.126 - Accuracy of Financial Reports Management Views LEO agrees with the finding. Planned Corrective Action The LEO Finance Division will implement the following: 1. Improvements to documented procedures for the Vocational Rehabilitation Financial Report (RSA-17) preparation to ensure consistency and accuracy of financial report submissions. 2. Specific RSA-17 training for applicable staff and management in order to enhance knowledge of reporting requirements. 3. An additional layer of management review on RSA-17 financial reports prior to submission. Anticipated Completion Date September 30, 2025 Responsible Individual(s) Heidi Parker, LEO Chris Johnson, LEO

View Audit 360209

Finding 567698 (2024-027)

Significant Deficiency 2024

State of Michigan

MI

Subrecipient Monitoring Internal Control / Segregation of Duties § 200.332

Finding 2024-027 Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027 - Subaward Information Management Views MDOT and LEO agree with parts a. and b. of the finding, respectively. For part c., the Michigan Strategic Fund (MSF) agrees that the subaward agreements did not specify whether th...

Finding 2024-027 Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027 - Subaward Information Management Views MDOT and LEO agree with parts a. and b. of the finding, respectively. For part c., the Michigan Strategic Fund (MSF) agrees that the subaward agreements did not specify whether the award was for research and development (R&D) purposes. The omission occurred because MSF does not administer awards intended to support R&D activities under this program; accordingly, this designation was not included in the grant agreement. MSF also agrees that the subaward agreements did not include an indirect cost rate. MSF did not fund indirect costs as part of this program; therefore, an indirect cost rate was not included in the grant agreement. Planned Corrective Action For part a., MDOT will incorporate into its current process all required subaward information to ensure it is reported to subrecipients, which will include, but not be limited to, UEI, Federal Award Identification Number (FAIN), federal award date, subaward period of performance start and end date, subaward budget period start and end date, federal awarding agency name, assistance listing number (ALN) title, identification of whether the award is for R&D, indirect cost rate for the federal award, an approved federally recognized indirect cost rate for the subrecipient, and the closeout terms and conditions. MDOT will also provide current subrecipients with the missing required subaward information. For part b., the LEO Prosperity Division will review records to identify all subrecipients that were previously provided with incorrect FAINs and will provide them with correct information. In addition, the LEO Prosperity Division will implement a procedural change to have a reviewer check to ensure that award information is accurately stated before grant issuance. For part c., to align with Uniform Guidance requirements (2 CFR 200.332(a)) all future agreements under the program will explicitly state that: 1) funding is not intended to support R&D activities; and 2) indirect costs are not eligible costs. All applicable current subrecipients will be notified of the same. Anticipated Completion Date a. September 30, 2025 b. July 31, 2025 c. July 31, 2025 Responsible Individual(s) a. Gina Huhn, MDOT Jean Ruestman, MDOT b. Denise Flannery, LEO c. Jay Williams, MSF Amy Rencher, MSF Gregory West, MSF Christine Whitz, MSF Christina Degrow, MSF

View Audit 360209

Finding 567697 (2024-026)

Significant Deficiency 2024

State of Michigan

MI

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties § 200.303

Finding 2024-026 Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027 - Workfront Security Management and Access Controls Management Views DTMB agrees with the finding. Planned Corrective Action DTMB implemented process improvements in May 2024 related to the tracking and documentation of...

Finding 2024-026 Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027 - Workfront Security Management and Access Controls Management Views DTMB agrees with the finding. Planned Corrective Action DTMB implemented process improvements in May 2024 related to the tracking and documentation of user access requests to support approval of user access and system roles. The exceptions cited are related to users whose access was granted prior to the improved documentation being implemented. Anticipated Completion Date Completed Responsible Individual(s) Jennifer Edmonds, DTMB

View Audit 360209

Finding 567694 (2024-023)

Significant Deficiency 2024

State of Michigan

MI

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Subrecipient Monitoring § 200.303

Finding 2024-023 Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027 - PTMS Security Management and Access Controls Management Views MDOT agrees with the finding. Planned Corrective Action MDOT EIM and Office of Passenger Transportation will collaborate and provide oversight to ensure ...

Finding 2024-023 Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027 - PTMS Security Management and Access Controls Management Views MDOT agrees with the finding. Planned Corrective Action MDOT EIM and Office of Passenger Transportation will collaborate and provide oversight to ensure that Public Transportation Management System (PTMS) user access is reviewed semiannually for privileged accounts and annually for all other accounts. MDOT will implement an improved process which will include obtaining, verifying, and documenting the written approval for all identified users by the designated System Security Administrators. Access will be modified/removed, as appropriate, based on responses or removed for non-responders prior to the end of each six-month period for privileged users and each fiscal year for all other users. Anticipated Completion Date September 30, 2025 Responsible Individual(s) Sandy Lovell, MDOT Gina Huhn, MDOT Jean Ruestman, MDOT Kyle Nelson, MDOT Andy Esch, MDOT

View Audit 360209

Finding 567691 (2024-001)

Significant Deficiency 2024

State of Michigan

MI

Subrecipient Monitoring Internal Control / Segregation of Duties

Finding 2024-001 SIGMA High-Risk Activity Monitoring Management Views LEO agrees with the finding. Planned Corrective Action The LEO Finance Division will implement the following: 1. Updated procedures that ensure completeness of high-risk activity reports by adjusting date parameters of weekly ...

Finding 2024-001 SIGMA High-Risk Activity Monitoring Management Views LEO agrees with the finding. Planned Corrective Action The LEO Finance Division will implement the following: 1. Updated procedures that ensure completeness of high-risk activity reports by adjusting date parameters of weekly reports. 2. A layer of review by management that oversees SIGMA override processes and transactions to ensure appropriateness. 3. A procedure to ensure the adequate retention of management review documents. Anticipated Completion Date August 31, 2025 Responsible Individual(s) Robert Mason, LEO Mary McGrath, LEO

View Audit 360209

Finding 567678 (2024-021)

Significant Deficiency 2024

State of Michigan

MI

Internal Control / Segregation of Duties Subrecipient Monitoring Period of Performance § 200.303 § 200.308

Finding 2024-021 National Guard Military Operations and Maintenance (O&M) Projects, ALN 12.401 - Extension Procedures Management Views DMVA agrees with the finding. Planned Corrective Action DMVA will set annual recurring calendar appointments to review program activities with the program managers...

Finding 2024-021 National Guard Military Operations and Maintenance (O&M) Projects, ALN 12.401 - Extension Procedures Management Views DMVA agrees with the finding. Planned Corrective Action DMVA will set annual recurring calendar appointments to review program activities with the program managers one month before the end of the period of performance to ensure a joint understanding of extension requirements, allowing sufficient time to prepare and submit period of performance extension requests timely, if needed. Anticipated Completion Date September 1, 2025 Responsible Individual(s) Rachelle Breeden, DMVA

View Audit 360209

Finding 567676 (2024-010)

Significant Deficiency 2024

State of Michigan

MI

Internal Control / Segregation of Duties § 200.303

Finding 2024-010 MDE, Change Management Process Management Views MDE agrees with the finding. Planned Corrective Action For MiND, the standard change management process requires documenting the test results. However, there are scenarios when the data in question is only in the production environme...

Finding 2024-010 MDE, Change Management Process Management Views MDE agrees with the finding. Planned Corrective Action For MiND, the standard change management process requires documenting the test results. However, there are scenarios when the data in question is only in the production environment; or it might be production specific deployment like changing application settings which does not have relevance to the test environment. In these cases, MDE will maintain documentation in DevOps that the deployment is production specific. MDE will increase the post-review process of MiND related work items from a semi-annual to quarterly basis to ensure all required evidence of testing is recorded appropriately. For NexSys, MDE will review the change management process with DTMB and implement additional steps to ensure tickets are closed in a timely manner and all testing results have been appropriately documented. Anticipated Completion Date September 30, 2025 Responsible Individual(s) Monica Butler, MDE Peter Jones, MDE

View Audit 360209

Finding 567666 (2024-019)

Significant Deficiency 2024

State of Michigan

MI

Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.303

Finding 2024-019 WIC Special Supplemental Nutrition Program for Women, Infants, and Children, ALN 10.557 - MI-WIC Change Management Process Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS discussed the change management documented requirements with the information t...

Finding 2024-019 WIC Special Supplemental Nutrition Program for Women, Infants, and Children, ALN 10.557 - MI-WIC Change Management Process Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS discussed the change management documented requirements with the information technology (IT) contractor during April 2025 to ensure all testing is documented appropriately. MDHHS has updated the Michigan Women, Infants, and Children Information System (MI-WIC) Change Management Controls process to include a review of each change to ensure it has successfully completed all components of the change management process prior to completion of associated release activities. Anticipated Completion Date Completed Responsible Individual(s) Kristina Brady, MDHHS Bagya Kodur, MDHHS

View Audit 360209

Finding 567659 (2024-006)

Significant Deficiency 2024

State of Michigan

MI

Special Tests & Provisions Subrecipient Monitoring Internal Control / Segregation of Duties § 200.303

Finding 2024-006 ADP Security Program Management Views Although MDHHS and DTMB agree annual testing was not conducted for one system and not all necessary updates to the system security plan were completed during the audit period for four systems, MDHHS and DTMB disagree that effective controls wer...

Finding 2024-006 ADP Security Program Management Views Although MDHHS and DTMB agree annual testing was not conducted for one system and not all necessary updates to the system security plan were completed during the audit period for four systems, MDHHS and DTMB disagree that effective controls were not implemented to ensure confidentiality, integrity, and availability of its automated data processing (ADP) information systems. MDHHS and DTMB also disagree that the security of critical systems was at risk by failing to mitigate potential vulnerabilities as described in the effect statement of the finding. MDHHS and DTMB have compensating controls in place to ensure confidentiality, integrity, and availability of its ADP information systems in addition to mitigating potential vulnerabilities. MDHHS and DTMB monitor remediation of Plans of Actions and Milestones for all information systems even after expiration of the authority to operate (ATO). For one system cited, MDHHS is required to audit the system as part of the responsibilities related to the Affordable Care Act and the Medicaid Expansion marketplace. Those audits are conducted to show compliance with federal information security and privacy requirements related to data stored in those systems. The system required to be audited as part of the Affordable Care Act, along with two other systems cited, are reviewed biennially through the Internal Control Evaluation process where control evidence is updated to demonstrate the effectiveness of controls. Each system cited did not have any significant changes and implemented controls are still working as expected. Planned Corrective Action DTMB has hired additional resources to help ensure the timely completion of the required work below. For part a., MDHHS and DTMB will conduct testing of the disaster recovery plan (DRP) by September 30, 2025, and will follow SOM Technical Standards on DRP testing going forward. For part b., MDHHS and DTMB will complete the necessary updates to the system security plans, including updating the risk assessments, and anticipate completion for all cited systems by July 1, 2025. MDHHS and DTMB anticipate that ATO renewals will be attained for all cited systems by August 30, 2025. Anticipated Completion Date a. September 30, 2025 b. August 30, 2025 Responsible Individual(s) Laura Visser, MDHHS Nathan Buckwalter, DTMB Lyndia Deromedi, MDHHS Heather Frick, DTMB Kasi Hunzinger, MDHHS Veronica Maxson, MDHHS Karen Scott, MDHHS Michelle Smith, MDHHS

View Audit 360209

Finding 567657 (2024-004)

Significant Deficiency 2024

State of Michigan

MI

Internal Control / Segregation of Duties § 200.303

Finding 2024-004 Bridges Change Management Process Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS change control processes require a communication to be sent within three business days after each release that validates the changes to Bridges were applied as expect...

Finding 2024-004 Bridges Change Management Process Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS change control processes require a communication to be sent within three business days after each release that validates the changes to Bridges were applied as expected and this validation is documented and retained as part of the release close-out process. MDHHS added a checklist to immediate releases during April 2025 to help eliminate human error and ensure documentation of all post-implementation approvals is retained for each release. Anticipated Completion Date Completed Responsible Individual(s) Holly Roderick, MDHHS

View Audit 360209

Finding 567656 (2024-003)

Material Weakness 2024

State of Michigan

MI

Internal Control / Segregation of Duties Subrecipient Monitoring Eligibility § 200.303

Finding 2024-003 Bridges Security Management and Access Controls Management Views MDHHS agrees with the finding. Planned Corrective Action For parts a., b., c., and d., MDHHS implemented the Database Security Application (DSA) on October 2, 2023, which includes documenting incompatible role except...

Finding 2024-003 Bridges Security Management and Access Controls Management Views MDHHS agrees with the finding. Planned Corrective Action For parts a., b., c., and d., MDHHS implemented the Database Security Application (DSA) on October 2, 2023, which includes documenting incompatible role exception requests and user access request approvals, semi-annual review of privileged users, and annual review for all users. Security management and access control processes will continue to be a standing agenda item for ongoing quarterly training sessions with Local Office Security Coordinators (LOSCs). For parts a., c., and d., the Access Management Section began conducting quarterly reconciliations of DSA to the Bridges Integrated Automated Eligibility Determination System (Bridges) during the first quarter of fiscal year 2025. For part b., MDHHS is currently evaluating the feasibility of establishing a quarterly review process to help ensure documentation is maintained for a sample of LOSC monitoring reports. MDHHS anticipates completing the evaluation by September 30, 2025, and will determine an anticipated completion date for implementation, if necessary, at that time. For part e., MDHHS Local Office Directors, District Managers, or designees review a monthly sample of high-risk Bridges transactions to ensure documentation was properly maintained. Beginning September 2024, MDHHS Business Service Centers (BSC) implemented a monitoring process to ensure monthly reviews are completed by the local offices timely and that the documentation is properly maintained. Anticipated Completion Date a., c., d., and e. Completed b. September 30, 2025 Responsible Individual(s) a., b., c., and d. Jim Bowen, MDHHS e. Veronica Maxson, MDHHS

View Audit 360209

Finding 567655 (2024-002)

Significant Deficiency 2024

State of Michigan

MI

Eligibility Significant Deficiency Internal Control / Segregation of Duties § 200.303 § 200.334

Finding 2024-002 Bridges Interface Controls Management Views DTMB disagrees with the condition and the effect of the OAG’s finding. The OAG sampled 85 total files across eight interfaces. Of these, seven appeared to present issues. For five of the sampled files, detailed exception results no longer...

Finding 2024-002 Bridges Interface Controls Management Views DTMB disagrees with the condition and the effect of the OAG’s finding. The OAG sampled 85 total files across eight interfaces. Of these, seven appeared to present issues. For five of the sampled files, detailed exception results no longer existed. DTMB maintains summary tables for 10 years and purges detailed exception records at the beginning of each calendar year for anything older than 12 months. This purge process was communicated to the OAG during the fiscal year 2022 audit, and sampling was performed prior to purging for the fiscal year 2023 audit. When informed that the sample included files for which the detailed exception records had been purged, the OAG requested DTMB run a simulation processing of the original interface file in a testing environment to recreate detailed exception records. DTMB’s technical teams informed the OAG that rerunning in the current test environment would likely differ from the original results due to code changes that occurred in the test environment subsequent to when the original interface files were run in production. The OAG requested DTMB to proceed with rerunning the files in the current test environment. As a result, the OAG identified five instances where the detailed exception records from the simulation in the test environment did not exactly match the summary table from the original production interface results. For the 2 remaining files out of 85 (2.4 percent) that were cited, it should be clarified that the reconciliation being discussed is not data that was lost or misplaced between systems, but reconciliation of two exceptions correctly logged and correctly not counted in a summary report because they were alerts during processing, not errors that would be forwarded for review. These results do not present a significant deficiency in the ability of MDHHS to review the detailed exceptions. Also, these 2 records are insignificant when compared to the 11.6 million records processed in the 85 sampled files (0.000001 percent). Therefore, the current controls are reasonable to ensure that data processed from the source system to the receiving system is processed accurately, completely, and timely. Planned Corrective Action DTMB disagrees with the finding and does not intend to take further action. Anticipated Completion Date Not applicable Responsible Individual(s) Nathan Buckwalter, DTMB

View Audit 360209

Finding 567644 (2024-001)

Material Weakness 2024

Neighborhood Housing Services of the Black Hills, Inc.

SD

Reporting Internal Control / Segregation of Duties

Finding #2024-001 – Preparation of Financial Statements and Schedule of Expenditures of Federal Awards (SEFA) and Audit Adjustments Responsible Individuals: Mike Walker (CEO) and Kathleen Burnham (Accountant) Corrective Action Plan: The Organization has accepted the risk associated with requesting t...

Finding #2024-001 – Preparation of Financial Statements and Schedule of Expenditures of Federal Awards (SEFA) and Audit Adjustments Responsible Individuals: Mike Walker (CEO) and Kathleen Burnham (Accountant) Corrective Action Plan: The Organization has accepted the risk associated with requesting the auditors to prepare the financial statements and SEFA and continues to plan for the auditors to prepare the reports. Due to the cost of hiring a full-time replacement staff accountant, the board of directors and management are willing to accept this degree of risk associated with financial statement and SEFA preparation and will assist with additional internal oversight to limit risk accordingly. Anticipated Completion Date: Ongoing

View Audit 360188

Finding 567641 (2024-002)

Significant Deficiency 2024

Tarrant County Samaritan Housing

TX

Questioned Costs Eligibility Significant Deficiency

Finding-002 Eligibility – Significant deficiency in internal control over compliance (Unit Inspection Documentation) Management Response Management acknowledges that this finding resulted in part from an over-reliance on partner organizations for performing initial and annual unit inspections, witho...

Finding-002 Eligibility – Significant deficiency in internal control over compliance (Unit Inspection Documentation) Management Response Management acknowledges that this finding resulted in part from an over-reliance on partner organizations for performing initial and annual unit inspections, without ensuring that full inspection documentation was consistently maintained in internal records. To address this, the following corrective actions have been implemented: •The Leasing Department and Support Services teams are now required to collect and retain copies of all unit inspection documentation (both initial move-in inspections and annual reinspection), even when performed by partner organizations. •A centralized tracking log for unit inspections has been created and will be maintained by the Program Director to monitor inspection status and ensure document retention for each client. •Program staff are required to upload inspection documents to a secure central drive and log inspection completion in the client case management database. •Quarterly reviews will be conducted by the Compliance team to ensure all required inspection documentation is properly retained and accessible. Training on these updated procedures will be conducted on June 10, 2025, with quarterly refresher trainings planned. Responsible Staff: Program Directors and Leasing Manager Implementation Date: June 2, 2025

View Audit 360187 Questioned Costs: $1

Finding 567639 (2024-001)

Material Weakness 2024

Scripps Health and Affiliates

CA

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles

Corrective Action Plan Corrective Action Plan – Uniform Guidance Audit Finding Organization: Scripps Health and Affiliates Federal Agency: U.S. Department of Homeland Security Pass-Through Agency: California Governor’s Office of Emergency Services UEI Number: JJRCL53EXL36 Audit Period: Year Ended S...

Corrective Action Plan Corrective Action Plan – Uniform Guidance Audit Finding Organization: Scripps Health and Affiliates Federal Agency: U.S. Department of Homeland Security Pass-Through Agency: California Governor’s Office of Emergency Services UEI Number: JJRCL53EXL36 Audit Period: Year Ended September 30, 2024 Finding Reference Number: 2024-001 Federal Program: COVID-19 – Disaster Grants – Public Assistance (Presidentially Declared Disasters) Assistance Listing Number: 97.036 Finding Summary: The organization did not employ an adequate internal control review of expenditures to support activities allowed or unallowed, allowable costs/cost principles, reporting and special tests and provisions related to amounts reimbursed for the project worksheet as it relates to the FEMA disposition requirements for COVID-19 related supplies. As a result, Management was reimbursed by FEMA for expenditures that were not in compliance with the FEMA disposition requirements which resulted in a questioned costs of $480,606. Corrective Action Plan: Management will develop and implement an additional layer of review in future FEMA project worksheet submissions to ensure expenditures reporting for reimbursement in the FEMA project worksheet comply with the FEMA disposition requirements. Management will work with FEMA to refund the questioned costs and discuss the extent of the additional courses of action. Management will ensure this is performed through the closeout process of the project worksheet with FEMA. Responsible Officials & Contact Person: Brett Tande, Executive Vice President & Chief Financial Officer Scripps Health and Affiliates Expected Completion Date: June 30, 2025

View Audit 360181 Questioned Costs: $1

Corrective Action Plans

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