Corrective Action Plans

Finding 36747 (2022-001)

None 2022

NY

Internal Control / Segregation of Duties

Corrective Action Plan October 25, 2022 Weedsport Central School District respectfully submits the following corrective action plan for the year ended June 30, 2022. OVERSIGHT AGENCY: New York State Education Department INDEPENDENT PUBLIC ACCOUNTING FIRM: D?Arcangelo & Co., LLP PO Box 4300...

Corrective Action Plan October 25, 2022 Weedsport Central School District respectfully submits the following corrective action plan for the year ended June 30, 2022. OVERSIGHT AGENCY: New York State Education Department INDEPENDENT PUBLIC ACCOUNTING FIRM: D?Arcangelo & Co., LLP PO Box 4300 Rome, NY 13440 FINDING: 2021-001 Federal Uniform Guidance Policies and Procedures PLANNED ACTION: Weedsport Central School District will develop required written policies and procedures as required by the OMB?s Uniform Guidance. CONTACT RESPONSIBLE: Stacie McNabb, Business Manager ANTICIPATED DATE OF COMPLETION: June 30, 2023

View Audit 27446

Finding 36744 (2022-002)

Significant Deficiency 2022

Northland Pines School District

WI

Internal Control / Segregation of Duties Allowable Costs / Cost Principles HUD Housing Programs

2022-002 Journal Entry Approval Recommendation: We recommend the District review its written procedures to ensure there are adequate controls over journal entry reviews. Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Action Taken in Response to Fi...

2022-002 Journal Entry Approval Recommendation: We recommend the District review its written procedures to ensure there are adequate controls over journal entry reviews. Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Action Taken in Response to Finding: The Business Manager will review and approve all journal entries submitted via Skyward by the Accounting Coordinator and ensure proper supporting documentation is attached to each entry. In turn, the Accounting Coordinator will do the same for all journal entries submitted by the Business Manager. Name of Responsible Official: Tera Fritz, Business Manager Expected Completion Date: July 1, 2022

View Audit 25955

Finding 36724 (2022-021)

Significant Deficiency 2022

Government of the District of Columbia

DC

Internal Control / Segregation of Duties Special Tests & Provisions Matching / Level of Effort / Earmarking § 200.303

DHCF concurs with these findings. At issue in this finding is a pricing discrepancy of .36 cents less per item than indicated in the applicable contract for the subject services between DHCF and its QIO, Comagine Health, LLC (Comagine). Effective June 2023, DHCF confirms that it is paying the appro...

DHCF concurs with these findings. At issue in this finding is a pricing discrepancy of .36 cents less per item than indicated in the applicable contract for the subject services between DHCF and its QIO, Comagine Health, LLC (Comagine). Effective June 2023, DHCF confirms that it is paying the appropriate contracted rate for all services rendered under its contract and has confirmed that Comagine has corrected its invoice billing rate to match the contracted amount. To ensure that DHCF continues to reimburse its QIO at the applicable contracted rate, it will draft and implement a QIO invoice reimbursement checklist containing the contracted rate(s) for applicable items, and a check box to confirm that the amount billed in the invoice corresponds to the contracted rate. This checklist will be completed by the Division of Clinician, Pharmacy, and Acute Provider Services within the Health Care Delivery Management Administration, which is responsible for payment of invoices submitted by Comagine. See Corrective Action Plan for chart/table

View Audit 31369

Finding 36723 (2022-020)

Significant Deficiency 2022

Government of the District of Columbia

DC

Internal Control / Segregation of Duties Eligibility Reporting § 200.303

DHCF and DHS concur with the findings. For bullet point #1 of the findings noted: Fourteen (14) of the cases were delayed because of caseworker inaction within 45 days. However, of those (14) cases, all were sent notices. There were system tickets created for multiple cases listed however they wer...

DHCF and DHS concur with the findings. For bullet point #1 of the findings noted: Fourteen (14) of the cases were delayed because of caseworker inaction within 45 days. However, of those (14) cases, all were sent notices. There were system tickets created for multiple cases listed however they were created well after the 45 days. As a corrective action DHS will provide refresher training and reinforce oversight controls to ensure caseworkers and supervisors are processing applications within federally required timeframes. DHCF is working on enhancing the medical application in the District Direct resident portal to ensure a user-friendly experience for residents to submit applications online. As a result, we expect to see a decrease in delays to application processing as well as a decrease in caseworkers having to trigger notices as the online forum will automate the mailing of notices. For bullet point #2 of the findings noted: One (1) of the cases sighted for lack of verification of SSN was an improper caseworker application of the death process. On 12/09/22 the agency received a death certificate for the beneficiary confirming the decease date of 11/26/22. An application was later received on 12/22/23 with no indication of need for retro- services. The application was improperly processed due to the death notification date. As a corrective action refresher training will be provided to caseworker to ensure the proper application of the death process. For bullet point #3 of the findings noted: One (1) of the cases sighted for lack of verification of SSN was an improper caseworker application of the death process. On 12/09/22 the agency received a death certificate for the beneficiary confirming the decease date of 11/26/22. An application was later received on 12/22/23 with no indication of need for retro- services. The application was improperly processed due to the death notification date. As a corrective action refresher training will be provided to caseworker to ensure the proper application of the death process. One (1) of the cases sighted for lack of verification was a result of improper application of COVID procedures. A request was made to the hub to match SSN and citizenship information attested to by the beneficiary. No match was returned by the hub; RFI /General communication was issued to request citizenship verification; no response was received however COVID PHE rules prohibited closure of case; eligibility was extended on the back end. Although the RFI /General communication was issued correctly, the COVID process to clear the verification to prevent termination was not. The process to clear verifications was not applicable to SSN and Citizenship and this case should have been denied for failure to verify. Although COVID processes are no longer in place as a corrective action the district will incorporate the manual citizenship process into the refresher training related to beneficiaries whose hub ping returns as null. See Corrective Action Plan for chart/table

View Audit 31369

Finding 36719 (2022-017)

Material Weakness 2022

Government of the District of Columbia

DC

Questioned Costs Student Financial Aid Eligibility § 200.303

CFSA concurs with the findings as stated. For bullet point #1 of the findings noted: This appears to be a data entry error that occurred during the eligibility team?s preparation for the single audit. The room & board costs that occurred during the erroneous ?Eligible Not Reimbursable? period on t...

CFSA concurs with the findings as stated. For bullet point #1 of the findings noted: This appears to be a data entry error that occurred during the eligibility team?s preparation for the single audit. The room & board costs that occurred during the erroneous ?Eligible Not Reimbursable? period on the redetermination form were claimed to title IV-E in real time during CFSA?s quarterly claiming process. The Supervisory Eligibility Specialist has already begun a 10% quarterly quality review process of all eligibility determinations. For bullet point #2 of the findings noted: The youths in question were enrolled in high school at the start of the school year (and reflected as such in the FACES system) but were actually chronically truant. CFSA?s Business Services Administration and the Office of Youth Empowerment have implemented a joint quarterly review of the educational/employment/incapacity status of 18-to-21-year-old youth who are IV-E eligible to ensure that they meet federal requirements to support IV-E claims on their behalf. For bullet point #3 of the findings noted: The issues with background checks pertained to ?other adults residing in the home? who were not the licensed foster parents. The corrective action going forward is to produce source documentation during the audit that identifies the household composition of the foster family home so that the auditors have a clear picture of those who are adults and therefore require evidence that background checks were completed satisfactorily for IV-E eligibility purposes. CFSA will include the sections of the applications/re-applications for foster family home licensure, as appropriate, into the digital catalogue of readily available licensure documentation available for audit retrieval. These documents corroborate household composition for the purpose of identifying who, within the household, requires background checks. See Corrective Action Plan for chart/table

View Audit 31369 Questioned Costs: $1

Finding 36711 (2022-014)

Material Weakness 2022

Government of the District of Columbia

DC

Student Financial Aid Eligibility HUD Housing Programs § 200.303

DOEE agrees with the conditions and recommendations of this finding. DOEE proposes to strengthen its controls in the following manner: ? DOEE?s third party database developer updated the code in fiscal year 2022 to prevent occurrences of incorrect benefit amounts generated due to an error in ident...

DOEE agrees with the conditions and recommendations of this finding. DOEE proposes to strengthen its controls in the following manner: ? DOEE?s third party database developer updated the code in fiscal year 2022 to prevent occurrences of incorrect benefit amounts generated due to an error in identifying correctly inputted income amounts. The overall operations and maintenance of the eligibility systems ensure the code remains updated with accurate information. ? In fiscal year 2022, DOEE implemented a quality assurance (Q/A) check of benefit payments to identify database errors and duplicate benefits before submitting benefit payments to Utility vendors. DOEE continues this process today to ensure that database errors are identified and addressed in a timely manner. DOEE?s database developer will create and modify the second review report that is exportable to formats that can be read and understood and inclusive of all signed second application reviews. ? DOEE will conduct, and require participation by staff in, quarterly system demonstration and refresher trainings in order to strengthen existing policies and procedures to ensure the review of applications and household size are correctly recorded into the system. See Corrective Action Plan for chart/table

View Audit 31369

Finding 36708 (2022-012)

Material Weakness 2022

Government of the District of Columbia

DC

Special Tests & Provisions Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303

The Department of Human Services (DHS) agrees with the findings and will work with the DCAS and the Division of Innovation and Change Management (DICM) teams to mitigate the causes of the findings. This corrective action plan has multiple layers in which ESA will collaborate efforts between multipl...

The Department of Human Services (DHS) agrees with the findings and will work with the DCAS and the Division of Innovation and Change Management (DICM) teams to mitigate the causes of the findings. This corrective action plan has multiple layers in which ESA will collaborate efforts between multiple units within DHS/ ESA that includes the Division of Customer Workforce, Employment and Training (DCWET), the Division of Program Operations (DPO), and DICM. The Office of Performance Monitoring (OPM) has a process in place to monitor and confirm the hours reported from CATCH. OPM Monitors will continue to randomly generate 60 sample cases from Q5i monthly, review them and if they find any discrepancies would refer them to either OWO, DPO, or TEP Providers for resolution. When OPM conducts their review of DCAS hours, and identifies income and hour differences, the Department of Program Operations (DPO) is informed and/or the Office of Work Opportunity (OWO) requesting their assistance with resolving the discrepancy. While this would be a short-term solution it will go a long way to resolving some of the discrepancies in reported work hours that are being transmitted to Q5i. The Office of Work Opportunity (OWO) conducts outreach to customers come in for assessment and assignment to a TEP Providers. This process would eliminate instances where hours found in the DCAS system is unknown to the CATCH system. ESA will work with DCAS to enhance the system to tie the income evidence in the income support case to the employment evidence in the person record to allow the employment hours to end date once the income evidence is end dated. This will automate the process by connecting the 2-step process into one task. This automation process would be a permanent solution to curbing stale of unsubstantiated hours from migrating to Q5i.Once the system enhancement is in place, training will be conducted for all DPO Social Service Representatives on the DCAS screens which require action to confirm employment. See Corrective Action Plan for chart/table

View Audit 31369

Finding 36693 (2022-004)

Material Weakness 2022

Crawford County

IN

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Material Weakness § 200.1 § 200.303

FINDING 2022-004 Contact Person Responsible for Corrective Action: Wendy Marples, County Auditor Contact Phone Number: 812-338-2142 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: All future reporting of the Coronavirus State and Local Fiscal Recover...

FINDING 2022-004 Contact Person Responsible for Corrective Action: Wendy Marples, County Auditor Contact Phone Number: 812-338-2142 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: All future reporting of the Coronavirus State and Local Fiscal Recovery Funds will be reviewed for accuracy by a second staff member of the Auditor?s office prior to submission. The report will be signed and dated by both the preparer and reviewer. All documentation will be maintained to help prevent any future inconsistencies. Anticipated Completion Date: April 2024

View Audit 34823

Finding 36691 (2022-001)

Significant Deficiency 2022

Baptist Educational and Missionary Services, Inc.054-Eh131-Wah-L8

SC

Questioned Costs Subrecipient Monitoring HUD Housing Programs

Finding #2022-001 Comments on Findings and Recommendation: At December 31, 2022, deposits to the reserve for replacements account of $3,846 had not been made. Management should transfer $3,846 from the operating account to the reserve for replacements account. Action(s) taken or planned on the findi...

Finding #2022-001 Comments on Findings and Recommendation: At December 31, 2022, deposits to the reserve for replacements account of $3,846 had not been made. Management should transfer $3,846 from the operating account to the reserve for replacements account. Action(s) taken or planned on the finding: Management concurs with the finding and recommendation and transferred $3,846 on March 22, 2023 to the reserve for replacements account.

View Audit 32593 Questioned Costs: $1

Finding 36688 (2022-005)

Significant Deficiency 2022

Housing Authority of the City of Marianna

AR

HUD Housing Programs Period of Performance Internal Control / Segregation of Duties

Finding 2022-005 Criteria or Specific Requirement: CFDA 14.872; US Department of Housing and Urban Development; Public Housing Capital Fund; annual contributions contract number FW-7097; fiscal year ending March 31, 2022.Period of Performance in accordance with 24 CFR 905 and the PHA Annual and 5-Y...

Finding 2022-005 Criteria or Specific Requirement: CFDA 14.872; US Department of Housing and Urban Development; Public Housing Capital Fund; annual contributions contract number FW-7097; fiscal year ending March 31, 2022.Period of Performance in accordance with 24 CFR 905 and the PHA Annual and 5-Year Action Plan. Recommendation for Corrective Action: Establish and enforce controls over administration of CFP?s to ensure safe, sanitary, and affordable dwellings are maintained for the purpose of serving families of low-income status in accordance with 24 CFR section 905. Views of Responsible Officials: We will review existing control procedures to correct these deficiencies. We are currently working with contractors to complete improvement projects in a timely manner. We will also provide increased supervision and training over the administration of this area. Planned Corrective Action/Action Taken: We will review existing control procedures to correct these deficiencies. We are currently working with contractors to complete improvement projects in a timely manner. We will also provide increased supervision and training over the administration of this area. We anticipate a complete resolution of this type of error by December 31, 2022. Anticipated Completion Date: We will have this resolved by December 31, 2022 Auditors Evaluation of Auditee Comments: Management?s comments in relation to its corrective action plan appear reasonable, valid, and supported with sufficient, appropriate evidence. If the Oversight Agency has questions regarding this plan, please call Clarice Sneed, Executive Director, at (870)295-2691.

View Audit 30837

Finding 36686 (2022-003)

Material Weakness 2022

Housing Authority of the City of Marianna

AR

Eligibility HUD Housing Programs Internal Control / Segregation of Duties

Finding 2022-003 Criteria or Specific Requirement: CFDA 14.850; US Department of Housing and Urban Development; Public and Indian Housing; annual contributions contract number FW-7097; fiscal year ending March 31, 2022. Eligibility requirements in accordance with 24 CFR 960 relating to admission to...

Finding 2022-003 Criteria or Specific Requirement: CFDA 14.850; US Department of Housing and Urban Development; Public and Indian Housing; annual contributions contract number FW-7097; fiscal year ending March 31, 2022. Eligibility requirements in accordance with 24 CFR 960 relating to admission to, and occupancy of, public housing. Recommendation for Corrective Action: Establish procedures for managements review and supervision over tenant?s annual certifications. Specific internal control procedures should be implemented to ensure, for both family income examinations and reexaminations, documentation in the family file of: (1) waiting list documentation; (2) properly executed rent choice documentation; (3) utility allowance schedule annually updated reflecting the current cost and using normal patterns of consumption for the community as a whole, and current local utility rates; and (4) other factors that affect the determination of adjusted income or income-based rent in accordance with 24 CFR section 960. Views of Responsible Officials: We will review tenant?s files for the deficiencies identified above and implement new internal control procedures to correct these conditions. We will also provide increased supervision and training over this area. Planned Corrective Action/Action Taken: We will review tenant?s files for the deficiencies identified above and implement new internal control procedures to correct these conditions. We will also provide increased supervision and training over this area. We anticipate a complete resolution of this type of error by December 31, 2022. Anticipated Completion Date: We will have this resolved by December 31, 2022 Auditors Evaluation of Auditee Comments: Management?s comments in relation to its corrective action plan appear reasonable, valid, and supported with sufficient, appropriate evidence.

View Audit 30837

Finding 36661 (2022-004)

Material Weakness 2022

Academy of America

MI

Subrecipient Monitoring Material Weakness Reporting § 200.303

View of Responsible Officials and Corrective Action Plan ? The Academies have procedures in place requiring review and approval. Management believes that it was a limited number of items that may not have had written approval from a school administrator or the controller. Management will ensure th...

View of Responsible Officials and Corrective Action Plan ? The Academies have procedures in place requiring review and approval. Management believes that it was a limited number of items that may not have had written approval from a school administrator or the controller. Management will ensure that review and approval is properly documented by signature or an electronic approval.

View Audit 34863

Finding 36660 (2022-101)

Significant Deficiency 2022

Ethos Academy: A Challenge Foundation Academy, Inc.

AZ

Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.430

We have prepared the following corrective action plan as required by the standards applicable to financial audits contained in Government Auditing Standards and by the audit requirements of Title 2 U.S Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Au...

We have prepared the following corrective action plan as required by the standards applicable to financial audits contained in Government Auditing Standards and by the audit requirements of Title 2 U.S Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Specifically, for each finding we are providing you with the names of the contact people responsible for corrective action, the corrective action planned, and the anticipated completion date. Findings - Financial Statement Audit 2022-001: Significant Deficiency in Internal Controls: Payroll Recommendation: To help ensure that when changes are made to compensation levels employees are accurately paid, the School should implement internal control policies and procedures that require updates being adequately documented in the employee's personnel file. Action Taken: Ethos Academy concurs and has implemented the recommendation. Completion Date: During fiscal year 2023. Contact Person: Tamara Garcia, Director Federal Awards Findings and Questioned Costs 2022-101 Significant Deficiency in Internal Controls Over Compliance: Payroll Recommendation: To help ensure that when changes are made to compensation levels employees are accurately paid, the School should implement internal control policies and procedures that require updates being adequately documented in the employee's personnel file. Action Taken: Ethos Academy concurs and has implemented the recommendation. Completion Date: During fiscal year 2023. Contact Person: Tamara Garcia, Director

View Audit 34862

Finding 36658 (2022-001)

Significant Deficiency 2022

Sugar Valley Rural Charter School

PA

Procurement, Suspension & Debarment Subrecipient Monitoring Internal Control / Segregation of Duties

Corrective Action Plan Finding 2022-001- Significant deficiency in internal controls over compliance: The school recognizes that we have a weakness in our control procedures. The School will strengthen our control procedures for Federal Grants by thoroughly reviewing the grant requirements and trai...

Corrective Action Plan Finding 2022-001- Significant deficiency in internal controls over compliance: The school recognizes that we have a weakness in our control procedures. The School will strengthen our control procedures for Federal Grants by thoroughly reviewing the grant requirements and training staff involved with the grant process. The federal grant coordinator will review the Compliance Supplement and Uniform Guidance and inform staff team members of the requirements. The grant team will review significant transactions to insure proper procedures are followed. The team will also meet on a regular basis to discuss the grants. Responsible Party: Tracie Kennedy, CEO Kristi Courter, Federal Grant Coordinator Completion Date: March 1, 2023

View Audit 34190

Finding 36637 (2022-020)

Significant Deficiency 2022

State of Georgia/state Accounting Office-Ein Noted

GA

Questioned Costs Special Tests & Provisions Subrecipient Monitoring § 200.303

2022-020 Improve Controls over the NCCI Medically Unlikely Edits Process Federal Agency: U.S. Department of Health and Human Services State Entity: Department of Community Health (DCH) Corrective Action Plans: DCH has made changes to ensure proper record keeping and approval is maintained. The cha...

2022-020 Improve Controls over the NCCI Medically Unlikely Edits Process Federal Agency: U.S. Department of Health and Human Services State Entity: Department of Community Health (DCH) Corrective Action Plans: DCH has made changes to ensure proper record keeping and approval is maintained. The changes made to Medically Unlikely Edits (MUEs) occurred in 2017, several years prior to the audit in 2022. Moving forward, policy compliance specialists for Durable Medical Equipment (DME) will be required to sign an employee attestation that acknowledges and ensures they understand the Standard Operating Procedure (SOP) as outlined in the Centers for Medicare & Medicaid Services? (CMS) technical guidance manual in section 7.4. This change will be implemented on June 30, 2023. CMS approval of all MUE changes are maintained through the Georgia Medicaid Management Information System (GAMMIS) Georgia Interactive Portal. Upon approval from CMS to deactivate a MUE, the program policy specialist initiates a change order through the Georgia Interactive Portal requesting the current MUE edits to be deactivated and then modified per CMS approval. The approval from CMS is submitted as part of the request. The change order needs to be approved by management before changes can be made in GAMMIS. This process went into effect after the MUE changes made in 2017 in November of 2018. Estimated Completion Date: June 30, 2023 Contact Person: Lynnette Rhodes, MAP Executive Director Telephone: 404-656-7513; E-mail: lrhodes@dch.ga.gov

View Audit 26105 Questioned Costs: $1

Finding 36636 (2022-019)

Significant Deficiency 2022

State of Georgia/state Accounting Office-Ein Noted

GA

Special Tests & Provisions Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303

2022-019 Strengthen Controls over NCCI Program Requirements Federal Agency: U.S. Department of Health and Human Services State Entity: Department of Community Health (DCH) Corrective Action Plans: On or before September 30, 2023, the Department will revise its contract with the third party to incor...

2022-019 Strengthen Controls over NCCI Program Requirements Federal Agency: U.S. Department of Health and Human Services State Entity: Department of Community Health (DCH) Corrective Action Plans: On or before September 30, 2023, the Department will revise its contract with the third party to incorporate the required changes related to the Medicaid National Correct Coding Initiative (NCCI) edits and confidentiality. Estimated Completion Date: September 30, 2023 Contact Person: Lynnette Rhodes, MAP Executive Director Telephone: 404-656-7513; E-mail: lrhodes@dch.ga.gov

View Audit 26105

Finding 36635 (2022-018)

Significant Deficiency 2022

State of Georgia/state Accounting Office-Ein Noted

GA

Special Tests & Provisions Subrecipient Monitoring Significant Deficiency

2022-018 Continue to Strengthen Application Risk Management Program Federal Agency: U.S. Department of Health and Human Services State Entity: Department of Community Health (DCH) Corrective Action Plans: Significant progress has been made in implementing the department's corrective action plan, wh...

2022-018 Continue to Strengthen Application Risk Management Program Federal Agency: U.S. Department of Health and Human Services State Entity: Department of Community Health (DCH) Corrective Action Plans: Significant progress has been made in implementing the department's corrective action plan, which is still in progress. The Agency has acquired additional critical cybersecurity program resources and is recruiting others to assist the department in fully remediating the identified findings. These include hiring a Chief Information Security Officer and Cybersecurity Analyst on September 1, 2022, and December 15, 2022, respectively. Furthermore, ten Cybersecurity student interns will start on May 3, 2023, with ongoing recruitment for a Cybersecurity Architect/Engineer. Likewise, the necessary third-party security services required to remediate the Policy/Procedure findings have been procured via a Statewide contract awarded to Compliance Point. To date, the security services vendor has completed the initial drafting of 12 out of 20 Organization-wide Security Policies based on NIST Federal Computer Security Standards, with an expected completion date for all Organizational Policies by September 11, 2023. The CAP Remediation Plan Project is progressing well, and we should meet the planned completion date of December 31, 2023. Estimated Completion Date: December 31, 2023 Contact Person: Chad Purcell, CTO Telephone: 470-757-7871; E-mail: chad.purcell1@dch.ga.gov

View Audit 26105

Finding 36628 (2022-012)

Significant Deficiency 2022

State of Georgia/state Accounting Office-Ein Noted

GA

Special Tests & Provisions Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303

2022-012 Improve Controls over Managed Care Organization Financial Audits Federal Agency: U.S. Department of Health and Human Services State Entity: Department of Community Health (DCH) Corrective Action Plans: DCH has already included a statement in the Managed Care Organization (MCO) contracts re...

2022-012 Improve Controls over Managed Care Organization Financial Audits Federal Agency: U.S. Department of Health and Human Services State Entity: Department of Community Health (DCH) Corrective Action Plans: DCH has already included a statement in the Managed Care Organization (MCO) contracts regarding submitting financial statements in accordance with Generally Accepted Accounting Principles (GAAP) and Generally Accepted Auditing Standards (GAAS); however, MCOs submitted reports on a different basis. Going forward, DCH will review financial statements submitted to ensure the proper basis is used for the financial statements and then post to our website within the timeframes contained in the regulations. Estimated Completion Date: June 30, 2023 Contact Person: Lynnette Rhodes, MAP Executive Director Telephone: 404-656-7513; E-mail: lrhodes@dch.ga.gov

View Audit 26105

Finding 36627 (2022-024)

Significant Deficiency 2022

State of Georgia/state Accounting Office-Ein Noted

GA

Questioned Costs Allowable Costs / Cost Principles Period of Performance § 200.303 § 200.403 § 200.77

2022-024 Improve Controls over Period of Performance Federal Agency: U.S. Department of Health and Human Services State Entity: Department of Behavioral Health and Developmental Disabilities (DBHDD) Corrective Action Plans: The Department will continue to improve the internal controls to ensure tha...

2022-024 Improve Controls over Period of Performance Federal Agency: U.S. Department of Health and Human Services State Entity: Department of Behavioral Health and Developmental Disabilities (DBHDD) Corrective Action Plans: The Department will continue to improve the internal controls to ensure that expenditures are liquidated within 90 days of the end of the period of performance as required. The Department will update processes and procedures associated with period of performance requirements and provide training that outlines close-out processes associated with the specific grant awards. DBHDD will update the internal controls related to period of performance no later than June 30, 2023. Estimated Completion Date: June 30, 2023 Contact Person: Kenneth Ward, Director of Internal Audit Telephone: 404-884-5486; E-mail: kenneth.ward@dbhdd.ga.gov

View Audit 26105 Questioned Costs: $1

Finding 36624 (2022-023)

Material Weakness 2022

State of Georgia/state Accounting Office-Ein Noted

GA

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

2022-023 Strengthen Controls over Eligibility Records Federal Agency: U.S. Department of Health and Human Services State Entity: Department of Human Services (DHS) Corrective Action Plans: ? The Program will work with the Community Action Agencies (CAAs) and the third party to modify the data syste...

2022-023 Strengthen Controls over Eligibility Records Federal Agency: U.S. Department of Health and Human Services State Entity: Department of Human Services (DHS) Corrective Action Plans: ? The Program will work with the Community Action Agencies (CAAs) and the third party to modify the data system and establish a Community Services Block Grant (CSBG) Eligibility Date and Federal Poverty Level percentage or categorical eligibility status within the data system with each application. ? This modification will clearly identify the date that the household was eligible for CSBG services and ensure compliance with 42 U.S.C. ? 9902 (defining "low-income" and "poverty line"). The Household will be eligible for CSBG services for 90 days. At the 90-day marker, the Agency must re-determine eligibility to continue CSBG services. The services will end at the end of the current Federal Fiscal Year Contract and must be reestablished annually. ? For community events or indirect services aimed at assisting low-income communities, in accordance with 42 U.S.C. ? 9901 (objectives and purposes of the CSBG program), the CAAs will flag these events in the data system as "Community Event" and document the event's purpose, attendance, and any relevant eligibility information for participants. This approach will help demonstrate the services? validity and ensure compliance with the CSBG program's objectives. ? DHS will provide the reconciliation parameters and methodology to the CAAs for their quarterly reconciliation. ? The Program will update the CSBG Policy Manual and distribute to the network. The Program will provide training and guidance to the network to ensure that policies and procedures are consistently enforced and operating effectively. Estimated Completion Date: August 1, 2024 Contact Person: Cynthia Bryant, Unit Director Telephone: 470-259-8188; E-mail: cynthia.bryant@dhs.ga.gov

View Audit 26105

Finding 36599 (2022-030)

Material Weakness 2022

State of Georgia/state Accounting Office-Ein Noted

GA

Subrecipient Monitoring Allowable Costs / Cost Principles Eligibility § 200.303 § 200.511 § 200.514

2022-030 Strengthen Controls over the Summary Schedule of Prior Audit Findings Federal Agency: U.S. Department of Labor State Entity: Department of Labor (GDOL) Corrective Action Plans: As Georgia progressed towards addressing and pursuing efforts to resolve outstanding Coronavirus Aid, Relief, and...

2022-030 Strengthen Controls over the Summary Schedule of Prior Audit Findings Federal Agency: U.S. Department of Labor State Entity: Department of Labor (GDOL) Corrective Action Plans: As Georgia progressed towards addressing and pursuing efforts to resolve outstanding Coronavirus Aid, Relief, and Economic Security Act (CARES Act) matters, impediments such as limited workforce and system restrictions hindered progress. Such factors, imposed upon the intents to make system changes, corrections and enhancements. We have taken the following corrective actions in an ongoing effort to bring these findings to full resolution: 2020- 036 Improve Controls Over Eligibility Determinations In addition to steadily reviewing and determining eligibility of responses providing proof of Pandemic Unemployment Assistance (PUA) employment and wages, a task force has been established to assist with this effort. An ongoing campaign is in progress to onboard additional resources to increase the cadence of addressing these items. Claimants who fail to provide adequate proof are manually reconsidered and overpayments established appropriately. Since this process is manually reviewed by staff rather than by system automation, we anticipate this effort will take approximately 60 weeks to complete. When there are indications of potential fraud, additional investigation is pursued to determine if fraud penalties should be imposed. 2021-036 ? Improve Controls over Employer-Filed Claims Effective December 6, 2021, the Employer-Filed Claims (EFC) process was revised to require individuals (employees) to complete an EFC profile to include a real-time identity verification before payments can be made. Employers are responsible for submitting the request for the payment to certify to the individual?s employment status but the individuals must certify their identity and personal information for the claim to be processed. Employees are notified when a claim is filed on their behalf and provided instructions for their portion of completing the EFC process. The MyUI dashboard provides all the EFC correspondence sent to the individual as well as a status of the profile set up and identify verification. Summary We are currently seeking funding to modernize our UI benefits system which will incorporate and improve the controls cited. GDOL will develop and implement procedures to ensure the status of each prior audit finding is reported in an accurate manner. GDOL will ensure staff responsible for submitting the status of prior period audit findings are trained and understand their responsibilities associated with the Summary Schedule of Prior Audit Findings under the Uniform Guidance. Estimated Completion Date: December 6, 2021 Contact Person: Racquel Robinson, Unemployment Policy and Procedures Chief Telephone: 404-232-3190; E-mail: Racquel.Robinson@gdol.ga.gov

View Audit 26105

Finding 36598 (2022-029)

Material Weakness 2022

State of Georgia/state Accounting Office-Ein Noted

GA

Reporting Special Tests & Provisions Subrecipient Monitoring § 200.303

2022-029 Improve Controls over the Identification, Recording, and Reporting of Overpayments Federal Agency: U.S. Department of Labor State Entity: Department of Labor (GDOL) Corrective Action Plans: The Georgia Department of Labor did not maintain adequate controls over the identification, recordin...

2022-029 Improve Controls over the Identification, Recording, and Reporting of Overpayments Federal Agency: U.S. Department of Labor State Entity: Department of Labor (GDOL) Corrective Action Plans: The Georgia Department of Labor did not maintain adequate controls over the identification, recording, and reporting of benefit overpayments associated with the Unemployment Insurance programs. GDOL Response: The Georgia Department of Labor disagrees with this finding. USDOL provides guidance and recommended procedures for crossmatches but does not dictate a frequency or cadence for performing them. The crossmatch process is conducted using third party software which runs a systematic check against weeks in a quarter for which benefits are paid and wages are reported during the same quarter. Although the program may detect weeks paid and wages reported, this alone is not indicative of an overpayment. Therefore, the process involves verification correspondence being sent to both the claimant and the employer, as applicable, to verify the status of employment, the wages earned as well as the weeks in which an individual worked and earned the wages. Based on responses, an assessment is made to determine if an overpayment exists and subsequent actions are taken accordingly. We are prohibited from assuming a match is an overpayment. It is not an overpayment until we have completed a full investigation and provided due process to all parties. The audit report indicates misinterpretation of the data reflected on the federal reports, specifically the ETA 227. The ETA 227 is for reporting of overpayment detection and recovery activities that the Agency performed in a quarter. It is not for reporting the amount of benefits overpaid for specific weeks during that quarter. A federal reporting team was created to accurately identify and track overpayments. The Department is taking necessary actions to complete the overpayment reconciliation for the ETA 227 and 902 reports. Federal regulations require an actual person to review and establish fraudulent overpayments. Due to the volume of claims and the number of cross matches to be performed on all state and federal pandemic programs, it would require multiple GDOL staffing levels to review all cross matches, requiring increased levels of state and federal funding. Summary GDOL has developed an aggressive plan to complete all remaining state and pandemic program cross matches. We have filled all of our budgeted positions for the Overpayment Unit and are utilizing non-overpayment staff to assist with identification and overpayment investigations. Additionally, we are utilizing temp agency staff to perform some clerical duties; however, federal regulations prohibit non-merit staff from adjudicating and releasing overpayment decisions. In early 2022, we started to freeze the overpayment data at the end of every month so that we can conduct periodic reconciliation of the overpayment records. GDOL is coordinating with USDOL to ensure the timely and accurate identification, tracking and reporting of overpayments. GDOL greatly appreciates the feedback and recommendations and will consider this information in future endeavors to modernize and update system and business processes. Estimated Completion Date: January 1, 2022 Contact Person: Crystal Singleton, Policy and Procedure Manager Telephone: 404-232-3183; E-mail: Crystal.Singleton@gdol.ga.gov

View Audit 26105

Finding 36568 (2022-002)

Significant Deficiency 2022

Springfield Metropolitan Housing Authority

OH

HUD Housing Programs Reporting Internal Control / Segregation of Duties

2. Current Findings on the Schedule of Finding, Questioned Cost and Recommendation b. Finding 2022-002. U.S. Department of Housing and Urban Development Housing Choice Voucher Cluster. Financial Statements The year-end financial statements generated from the general ledger, that were prepared an...

2. Current Findings on the Schedule of Finding, Questioned Cost and Recommendation b. Finding 2022-002. U.S. Department of Housing and Urban Development Housing Choice Voucher Cluster. Financial Statements The year-end financial statements generated from the general ledger, that were prepared and presented for the audit contained inconsistencies, in comparison to the financial statements submitted to the Auditor of State, via the Hinkle Submission and the Entity Wide Balance Sheet and Entity Wide Revenue and Expense Summary, submitted via the Financial Assessment Subsystem. (1) Comments on the Finding and Each Recommendation. Management concurs with the finding and the auditor?s recommendation that the Public Housing Authority should assess the adequacy of the design of its policies and procedures related to preparation of financial statements and the design appropriate controls as necessary to rectify inadequacies. Furthermore, the Public Housing Authority should consider where errors could occur that would cause a material misstatement in the financial statements and which policies or procedures would prevent or detect the error on a timely basis. (2) Actions Taken on the Finding. Contributing to differences between the system generated financial statements and the financial statements prepared by the Authority for distribution include balances in accounts that typically have a balance that would appear on the Liability side of the Statement of Net Position, but in any given year have a balance reported on the Asset side of the Statement of Net Position, an example being the OPEB Net Asset. Balances of grants of short duration that for grant reporting purposes are maintained cumulatively in the general ledger for which only period amounts are reported on the Statement of Revenues, Expenses, and Change in Net Position is also an example of what can cause such differences. It is unknown by current management of Springfield MHA when the mapping for the financial statements generated by the Authority's accounting software was done or last updated. The financial statements generated by the Authority's accounting software are for very limited use by management only. They are not and were not generated for publication and distribution. For audit, Springfield MHA prepares trial balance worksheets that document mapping to the unaudited Financial Data Schedule, and then the totals from the unaudited Financial Data Schedule as adjusted (if applicable) provide the basis for the Financial Statements prepared for financial reporting and distribution. In addition to considering any mapping changes needed to system generated financial statements in the Authority's accounting software, Springfield MHA will consider how to label the financial statements generated by the accounting software as For Management Use Only.

View Audit 23985

Finding 36562 (2022-001)

None 2022

Memphis Housing Authority

TN

HUD Housing Programs Reporting Internal Control / Segregation of Duties

March 29, 2023 U.S. Department of Housing and Urban Development The Housing Authority of Memphis, Tennessee respectfully submits the following corrective action plan for the year ended June 30, 2022. Berman Hopkins Wright & LaHam, CPAs and Associates, LLP 8035 Spyglass Hill Road Melbourne, FL 32940 ...

March 29, 2023 U.S. Department of Housing and Urban Development The Housing Authority of Memphis, Tennessee respectfully submits the following corrective action plan for the year ended June 30, 2022. Berman Hopkins Wright & LaHam, CPAs and Associates, LLP 8035 Spyglass Hill Road Melbourne, FL 32940 Audit period: July 1, 2021 ? June 30, 2022 The finding from the June 30, 2022 schedule of findings and questioned costs are discussed below. FINDINGS ? FINANCIAL STATEMENTS AUDIT 2022-01 Financial Reporting Other Matter Condition: The Authority did not submit the original unaudited financial data to HUD until 6 months after their fiscal year end. For the fiscal year end June 30, 2022, the Authority's unaudited financial data schedule was submitted 4 months late. Context: The Authority's unaudited financial data submission is required to be sent to the U.S. Department of Housing and Urban Development Real Estate Assessment Center ("REAC") by August 31st of each fiscal year. In the past, due to COVID-19, waivers issued by HUD allowed for an extension of time that did not apply to the June 30, 2022 year end submission. Criteria: In accordance with HUD rules and regulations, the Authority is required to submit their unaudited financial information to REAC within 60 days after the fiscal year end, regardless of size and complexity of the agency. Cause: The completion of the prior year's approval from REAC, created delays for the current period. In prior years there have been waivers and extensions related to the initial financial close and submission to REAC, which extended into the current period and created delays for the current fiscal year to be submitted on time. Effect: The unaudited financial data was not submitted within the required time period for full points on REAC's scoring methodology for all authorities. In addition, HUD could not provide timely financial oversight based on the unaudited REAC submission. Auditor's Recommendations: The Authority should continue to monitor current HUD reporting due dates and follow up on expiration dates for any current relied upon waivers. In addition, we recommend the Authority develop a process to track compliance with timely HUD reporting for future due dates. View of Responsible Officials: With prior HUD extensions for unaudited financial submissions due to COVID-19, the Memphis Housing Authority presumed an extension was provided for FY2022 unaudited financials. The Memphis Housing Authority will make certain future unaudited and audited financial submissions are submitted by the stated deadlines. Contact: Vickie Aidridge, Chief Financial Officer, (901) 544-1329, valdridge@memphisha.org. If the Department of Housing and Urban Development has questions regarding this plan, please contact Dexter D. Washington, Chief Executive Officer, at (901) 544-1102. Sincerely yours, Dexter D. Washington, Chief Executive Officer

View Audit 27024

Finding 36553 (2022-005)

Significant Deficiency 2022

Lewisburg Borough

PA

Internal Control / Segregation of Duties

Finding 2022-005 Grant Program/CFDA#: Community Development Block Grant Program, 14.228 Federal Agency/Pass-Through Entity: United States Department of Housing and Urban Development/Pennsylvania Department of Community and Economic Development Finding - Segregation of Duties: A limited number of per...

Finding 2022-005 Grant Program/CFDA#: Community Development Block Grant Program, 14.228 Federal Agency/Pass-Through Entity: United States Department of Housing and Urban Development/Pennsylvania Department of Community and Economic Development Finding - Segregation of Duties: A limited number of personnel are involved in accounting functions in which they are responsible for all related transactions (i.e. the same person recording transactions, preparing checks, recording cash disbursements, mailing checks and reconciling bank accounts, etc.). This lack of segregation of duties results in a weakness within the Borough's internal control system. It was recommended by the auditors that a greater segregation of duties can be achieved by the implementation of additional procedures that utilize current and new personnel. However, in evaluating this need, the Borough must weigh the cost of employing additional personnel against the benefits to be derived there from. Borough Response: The Borough understands that it only has a limited number of employees within the business office to assign certain duties. Additionally, it understands the various employees' capabilities restrict its options to achieve an optimal segregation of duties. Consequently, the Borough has determined that with its current checks and balances in place, it feels it has achieved its optimal segregation of duties. It does not expect to generate any future benefit by expending additional funding to achieve a greater segregation of duties.

View Audit 27371

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