Corrective Action Plans

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Management Response: The Organization agrees with the auditor’s finding and will take actions to ensure that future documentation and reporting meets the standards required.
Management Response: The Organization agrees with the auditor’s finding and will take actions to ensure that future documentation and reporting meets the standards required.
Recommendation: We realize that with a limited number of office employees, segregation of duties is difficult. However, the Organization should review the operating procedures to obtain the maximum internal control possible under the circumstances. The Organization should also consider the potential...
Recommendation: We realize that with a limited number of office employees, segregation of duties is difficult. However, the Organization should review the operating procedures to obtain the maximum internal control possible under the circumstances. The Organization should also consider the potential consequence of reliance on one person for financial, grant and payroll reporting. Action Taken: This issue is reviewed annually through the audit review with the Board of Directors. The Organization has implemented a segregation of duties action plan effective December 31, 2025 to address this issue going forward. Anticipated Date of Completion: December 31, 2026
Finding 2025-003: Internal Controls Over Expenditures, Financial Reporting, and Program Income Corrective Action Management agrees with the recommendation. The Center will strengthen compliance monitoring procedures by requiring documented evidence of review for expenditures, payroll, federal financ...
Finding 2025-003: Internal Controls Over Expenditures, Financial Reporting, and Program Income Corrective Action Management agrees with the recommendation. The Center will strengthen compliance monitoring procedures by requiring documented evidence of review for expenditures, payroll, federal financial reports, and other compliance activities. Written procedures will be developed to define review responsibilities and documentation requirements. The Center will establish a formal process to track, reconcile, and monitor program income and will provide training to personnel involved in federal award administration. Periodic internal compliance reviews will be performed to verify controls are functioning effectively. Implementation Timeline Policies and review procedures to be implemented during fiscal year 2026 with quarterly monitoring thereafter. Responsible Parties Chief Financial Officer, Compliance Officer, and Program Management.
Finding 2025-12 Special Tests and Provisions: Title IV Credit Balance Disbursements – Noncompliance and Significant Deficiency in Internal Control Over Compliance; Planned Corrective Action Plan: APU will enhance monitoring of Title IV credit balances to ensure balances are identified, reviewed, and...
Finding 2025-12 Special Tests and Provisions: Title IV Credit Balance Disbursements – Noncompliance and Significant Deficiency in Internal Control Over Compliance; Planned Corrective Action Plan: APU will enhance monitoring of Title IV credit balances to ensure balances are identified, reviewed, and disbursed within the required 14-day period. Student account and financial aid personnel will establish a recurring review of outstanding credit balances, document follow-up and resolution, and escalate unresolved balances before the federal deadline.; Anticipated Completion Date: July 1, 2027
Federal Agency Name: Department of Veterans Affairs Assistance Listing Number: 64.003 Program Name: VA Supportive Services for Veteran Families Program Compliance Requirement: Reporting Finding Summary: No review and approval processes were in place over 2 quarterly progress reports. Corrective Acti...
Federal Agency Name: Department of Veterans Affairs Assistance Listing Number: 64.003 Program Name: VA Supportive Services for Veteran Families Program Compliance Requirement: Reporting Finding Summary: No review and approval processes were in place over 2 quarterly progress reports. Corrective Action Plan: Management has implemented procedures and control processes to incorporate an independent review and approval over quarterly reporting effective for the quarterly report ending June 30, 2025. Responsible Individuals: Teena Conrad, SSVF Program Manager, Lysa Allison, Executive Director and Christina Thoelke, Business Manager Anticipated Completion Date: June 2025
The current Board of County Commissioners acknowledges the finding. The Board is committed to strengthening written procedures related io federal grant administration, including allowable costs, procurement requirements, reporting, and compliance monitoring. Additional review processes will continue...
The current Board of County Commissioners acknowledges the finding. The Board is committed to strengthening written procedures related io federal grant administration, including allowable costs, procurement requirements, reporting, and compliance monitoring. Additional review processes will continue to be implemented to improve oversight and documentation.
The current Board of County Commissioners acknowledges the finding. While portions of this finding relate to prior fiscal years, the current Board is committed to strengthening county-wide internal controls over federal programs. The Board has reviewed the audit recommendations and will continue imp...
The current Board of County Commissioners acknowledges the finding. While portions of this finding relate to prior fiscal years, the current Board is committed to strengthening county-wide internal controls over federal programs. The Board has reviewed the audit recommendations and will continue implementing procedures addressing risk assessment, communication, monitoring, and compliance oversight for federal grants.
Views of Responsible Officials and Planned Corrective Actions: Responsible Person(s): Leesha Culp, Director CACFP/ECA Executive Director Anticipated Completion Date: November 2026 In September 2026, the Organization terminated its contract with its previous accounting services provider and engaged W...
Views of Responsible Officials and Planned Corrective Actions: Responsible Person(s): Leesha Culp, Director CACFP/ECA Executive Director Anticipated Completion Date: November 2026 In September 2026, the Organization terminated its contract with its previous accounting services provider and engaged Whittle Strategic Accounting with demonstrated experience serving nonprofit organization subject to annual audits. In conjunction with this transition, ECA management will implement and oversee a documented grant-tracking and review process. Management will maintain complete award documentation, establish and approved grant-specific accounting codes, and provide coding direction to the financial services provider. ECA management will review grant activity against award documents and the general ledger at least quarterly. Before the SEFA is finalized, a designated member of management will independently verify the federal agency, pass-through entity, Assistance Listing number, program name, and total federal expenditures and document final approval. The new provider will support transaction recording and reconciliation. ECA management will retain responsibility for the internal controls, accuracy, review, and approval of all grant information and the SEFA.
Finding 1240002 (2025-001)
Material Weakness 2025
Corrective Action: Management determined that a breakdown in the manual invoice verification workflow allowed duplicate health insurance transactions to be processed and submitted for reimbursement. Upon discovering the duplicate entries in May 2026, management conducted a comprehensive review of el...
Corrective Action: Management determined that a breakdown in the manual invoice verification workflow allowed duplicate health insurance transactions to be processed and submitted for reimbursement. Upon discovering the duplicate entries in May 2026, management conducted a comprehensive review of eligible expenditures incurred during the applicable grant periods. The review identified $102,713 in eligible program costs that had been incurred but had not previously been billed. This included $100,462 applicable to closed grant 3245806, $1,666 applicable to open grant 3245807, and $585 applicable to open grant 5325201. After accounting for these eligible, previously unbilled expenditures, the remaining variance was $45,643. The $45,643 remaining variance, associated with October, November, and December 2025 billings, was deferred and applied to allowable billings in June 2026. Traffick911 has implemented corrective measures to strengthen financial controls and prevent recurrence. The organization has hired new finance staff, contracted with a PEO to manage payroll and benefits, and instituted a monthly reconciliation of medical insurance expenses against payroll reports to ensure ongoing accuracy. Name of Contact Person: Danielle Upton, Chief Administrative Officer, (214) 685-5850, danielle@traffick911.com Projected Completion Date: Initial billing corrections were successfully finalized in June 2026. Additional oversight and internal controls regarding medical insurance expenses are on track for full implementation by December 31, 2026.
Finding Number 2025-227: The Division does not have documented control procedures in place to ensure compliance with period of performance requirements for the Rehabilitation Services-Vocational Rehabilitation Grants to States. Federal Program: 84.126 - Rehabilitation Services - Vocational Rehabilit...
Finding Number 2025-227: The Division does not have documented control procedures in place to ensure compliance with period of performance requirements for the Rehabilitation Services-Vocational Rehabilitation Grants to States. Federal Program: 84.126 - Rehabilitation Services - Vocational Rehabilitation Grants to States Related to Prior Finding: N/A Agency’s view: The agency agrees with this finding. IDVR acknowledges that the controls during the audit period were insufficient to ensure expenditures were consistently allocated to the correct federal award period. Corrective Action: Since November 2025, IDVR has implemented a comprehensive period-of-performance review process designed to ensure compliance with federal grant requirements. As part of this process, the Strategic Leadership Team reviews and determines when obligations should transition between federal fiscal year awards. Based on this direction, IDVR Data Manager updates system configurations and budget parameters within the AWARE case management system to ensure expenditures are assigned to the correct federal award. In addition, IDVR implemented a testing process in which the Data Manager and Program Analyst verify that expenditures are coding appropriately following budget updates. IDVR has also incorporated period-of-performance reviews into its quality assurance and compliance review process for case service expenditures. Invoice batches are reviewed before liquidation, or reimbursement requests are submitted to ensure expenditures are allocated to the proper grant award. These reviews are conducted by Quality Assurance and Compliance Analysts, Financial Specialists, the Financial Officer, and, when appropriate, Agency leadership, including the Deputy Administrator and Administrator. Through these layered review processes, IDVR has established documented internal controls designed to ensure compliance with period-of-performance requirements and has successfully utilized these controls since implementation as evidenced by approved RSA reimbursements of expenditures based upon both period of performance and allowability reviews completed by RSA on all expenditures reimbursed as required under route payment that IDVR has been engaged in with RSA since October 2024. IDVR is in the process of obtaining approval from RSA within drafted Grant’s Management Chapters for the policies, procedures and internal controls related to assurances of proper grant assignment based upon period of performance. Once approval is provided, IDVR will finalize, implement, and train on the approved policies, procedures, and internal controls that align with processes already in practice as of November 2025. Anticipated Corrective Action Date: January 30, 2027 Responsible for Corrective Action: Heidi Smith, Financial Officer Heidi.Smith@vr.idaho.gov (208) 287-6457
Finding Number 2025-225: The Division could not provide supporting documentation for amounts reported on the Rehabilitation Services Administration (RSA) reports required under the Rehabilitation Services-Vocational Rehabilitation Grants to States. Federal Program: 84.126 - Rehabilitation Services -...
Finding Number 2025-225: The Division could not provide supporting documentation for amounts reported on the Rehabilitation Services Administration (RSA) reports required under the Rehabilitation Services-Vocational Rehabilitation Grants to States. Federal Program: 84.126 - Rehabilitation Services - Vocational Rehabilitation Grants to States Related to Prior Finding: N/A Agency’s view: IDVR agrees that retention of supporting documentation aligned with the RSA-17 report submitted to RSA is necessary to ensure adequate documentation of the completed reports is created and maintained to support the submission. Corrective Action: IDVR has completed significant work to complete restatements of the RSA-17 for FFY2019-2024. These restatements have been accepted by the RSA Fiscal Unit and the reports were updated in RSAMIS by RSA after this process was completed in Spring 2026. With the restatement, RSA and IDVR have accepted the data based on an extensive third-party forensic review of IDVR’s financial records for these timeframes. IDVR is currently in the process of submitting the policy, procedures, and internal controls to RSA regarding the federal reporting of the RSA-17 required data elements. The fiscal staff have also worked extensively to ensure all future RSA-17 reports include supporting documentation that have been extracted from Luma and this process has been implemented as of February 2026. Once RSA approves the IDVR RSA-17 policy, procedures, and internal controls IDVR will adopt, train, and implement these documents as standard practice and will complete all future reports in accordance with the outlined controls and maintain the supporting documentation as outlined in the policy. Anticipated Corrective Action Date: January 30, 2027 Responsible for Corrective Action: Heidi Smith, Financial Officer Heidi.Smith@vr.idaho.gov (208) 287-6457
Finding Number 2025-220: Payroll adjustments lacked sufficient internal controls. Federal Programs: 93.777 - State Survey and Certification of Health Care Providers and Suppliers (Title XVIII) Medicare 93.778 - Grants to States for Medicaid 93.958 - Block Grants for Community Mental Health Services ...
Finding Number 2025-220: Payroll adjustments lacked sufficient internal controls. Federal Programs: 93.777 - State Survey and Certification of Health Care Providers and Suppliers (Title XVIII) Medicare 93.778 - Grants to States for Medicaid 93.958 - Block Grants for Community Mental Health Services Related to Prior Finding: 2024-234 Agency’s view: The agency agrees with the finding. Corrective Action: Updated ISD interface training and procedure documents. The ISD interface protocol has been revised to specifically address the required approval process for corrections. Updated training educates Financial Specialists on the proper procedures and reinforces the requirement to obtain documented approval via email before any corrections are interfaced. The Training documents also stress the importance of attaching the documents to the system to maintain proper records of such approval. Refresher training was also provided for all analysts. Expected outcome: These actions establish consistent, documented approval control for ISD corrections, and ensure that email approval evidence is retained with each transaction. Anticipated Corrective Action Date: June 30, 2026 Responsible for Corrective Action: Brooke Jenkins, Financial Specialist, Principal Brooke.Jenkins1@dhw.idaho.gov (208) 334-5500
Finding Number 2025-219: The Department could not provide sufficient documentation to demonstrate compliance with provider eligibility requirements for managed care network providers. Federal Programs: 93.777 - State Survey and Certification of Health Care Providers and Suppliers (Title XVIII) Medic...
Finding Number 2025-219: The Department could not provide sufficient documentation to demonstrate compliance with provider eligibility requirements for managed care network providers. Federal Programs: 93.777 - State Survey and Certification of Health Care Providers and Suppliers (Title XVIII) Medicare 93.778 - Grants to States for Medicaid 93.767 - Children's Health Insurance Program Related to Prior Finding: 2024-217 Agency’s view: The agency agrees with the finding. Corrective Action: The Department will work to enhance its oversight of the Managed Care Organizations (MCOs). Current contract requirements state ‘submit documentation requested by IDHW within three (3) business days for standard requests, and within ten (10) business days for requests that require significant preparation, or a mutually agreed upon date.’ One MCO, Molina, did not fulfill the data requests in a timely manner in accordance with their contract. The Department will impose all available liquidated damage remedies in the current contract for this delay from the MCO. This will be completed by December 31, 2026. Medicaid is in process of writing contract language that will be implemented in the next amendment cycle before the end of the fiscal year. The amended contract language will state that information related to audits will need to be supplied within one (1) business day for urgent, three (3) business days for expedited, and five (5) for average. The Department will work with the Division of Purchasing to determine if it is possible to amend the liquidated damage section to ensure that we can hold the MCO vendors accountable for providing information during such audits in the future. Anticipated Corrective Action Date: June 30, 2027 Responsible for Corrective Action: Sasha O’Connell, Deputy Director Sasha.OConnell@dhw.idaho.gov (208) 334-5500
Finding Number 2025-218: The Department did not ensure compliance with federal requirements that Managed Care Organizations (MCO) were submitting provider roster reports annually to verify that all providers were properly licensed and in good standing. Federal Programs: 93.777 - State Survey and Cer...
Finding Number 2025-218: The Department did not ensure compliance with federal requirements that Managed Care Organizations (MCO) were submitting provider roster reports annually to verify that all providers were properly licensed and in good standing. Federal Programs: 93.777 - State Survey and Certification of Health Care Providers and Suppliers (Title XVIII) Medicare 93.778 - Grants to States for Medicaid 93.767 - Children's Health Insurance Program Related to Prior Finding: 2024-218 Agency’s view: The agency agrees with the finding. Corrective Action: In 2025, the Department contracted with four (4) MCOs across six (6) contracts. Rosters were received and reviewed by staff but not noted in the contract monitoring tracker for the two (2) contracts. Moving forward higher levels of leadership (program managers and bureau chiefs) will be required to sign off to confirm that the review was noted in contract monitoring documentation. This will ensure that the provider roster and other reports are properly documented and reviewed. Anticipated Corrective Action Date: December 31, 2026 Responsible for Corrective Action: Sasha O’Connell, Deputy Director Sasha.OConnell@dhw.idaho.gov (208) 334-5500
Finding Number 2025-217: The Department lacked documented evidence of monitoring over provider screening and enrollment activities performed by the Department’s service organization for the Medicaid and CHIP programs. Federal Programs: 93.777 - State Survey and Certification of Health Care Providers...
Finding Number 2025-217: The Department lacked documented evidence of monitoring over provider screening and enrollment activities performed by the Department’s service organization for the Medicaid and CHIP programs. Federal Programs: 93.777 - State Survey and Certification of Health Care Providers and Suppliers (Title XVIII) Medicare 93.778 - Grants to States for Medicaid 93.767 - Children's Health Insurance Program Related to Prior Finding: N/A Agency’s view: The agency agrees with the finding. Corrective Action: The department routinely identifies, evaluates, and addresses areas of deficiency through its established oversight processes for our enrollment and credentialling contractor, Gainwell Technologies. The department reviews and documents, on a monthly basis, the contractor’s performance on 175 measures. The department and Gainwell representatives also participate in five (5) weekly, one (1) biweekly, and two (2) monthly meetings to facilitate issue identification, resolution, and monitoring of contractual performance related to enrollment and credentialling. While there were no providers found to be inappropriately enrolled or credentialled, the department understands that there are outstanding concerns regarding the state’s oversight. The department will coordinate with the Centers for Medicare and Medicaid Services (CMS) to identify gaps between current practices and CMS expectations establish a plan to address the auditors' concerns regarding compliance. The department anticipates completing this plan by January 1, 2027. Anticipated Corrective Action Date: January 1, 2027 Responsible for Corrective Action: Sasha O’Connell, Deputy Director Sasha.OConnell@dhw.idaho.gov (208) 334-5500
Finding Number 2025-216: The Department understated federal expenditures on the Children's Health Insurance Program (CHIP) CMS-21 Base Reports by $1,088,209. Federal Program: 93.767 - Children's Health Insurance Program Related to Prior Finding: N/A Agency’s view: The agency agrees with the finding....
Finding Number 2025-216: The Department understated federal expenditures on the Children's Health Insurance Program (CHIP) CMS-21 Base Reports by $1,088,209. Federal Program: 93.767 - Children's Health Insurance Program Related to Prior Finding: N/A Agency’s view: The agency agrees with the finding. Corrective Action: During the FFY 2026, Quarter 1 CMS-21 reporting cycle, the Medicaid Budget Team identified underreported indirect expenditures for State Fiscal Years 2024 and 2025. The discrepancies were traced to initial reporting issues following the LUMA system go-live in July 2023, which resulted in indirect expenditures not being incorporated into the CMS-21 reporting process. To address the underreporting, the Medicaid Budget Team entered prior-period adjustments on CMS 21P forms to claim the eligible expenditures for the affected eight quarters, consistent with applicable CMS reporting requirements. To strengthen internal controls and prevent recurrence, the Medicaid Budget Team developed a new report that automatically incorporates indirect expenditures into the CMS-21 workpapers. This automated process reduces the risk of indirect expenditures being omitted and provides additional control to improve the completeness and accuracy of future CMS-21 reporting. Included is the CMS 21 Summary Sheet which shows the consolidation of the prior period adjustments make to claim all identified expenditures that had been omitted (line 2). Anticipated Corrective Action Date: October 1, 2025 Responsible for Corrective Action: Erica Williams, Financial Specialist Principal Erica.Williams@dhw.idaho.gov (208) 334-5500
Finding Number 2025-215: The Department did not meet the Mental Health Block Grant (MHBG) earmarking requirement for evidence-based programs addressing early serious mental illness. Federal Program: 93.958 - Block Grants for Community Mental Health Services Related to Prior Finding: N/A Agency’s vie...
Finding Number 2025-215: The Department did not meet the Mental Health Block Grant (MHBG) earmarking requirement for evidence-based programs addressing early serious mental illness. Federal Program: 93.958 - Block Grants for Community Mental Health Services Related to Prior Finding: N/A Agency’s view: The Idaho Department of Health and Welfare (DHW) agrees with the finding. DHW consulted with the Substance Abuse and Mental Health Services Administration (SAMHSA) Grants Project Officer (GPO) regarding the Early Serious Mental Illness (ESMI) earmarking requirement, including how the requirement is calculated, the flexibility available for meeting the requirement, and the potential impact on future Mental Health Block Grant (MHBG) funding. The GPO confirmed that the standard requirement is to expend not less than 10% of the MHBG award on evidence-based programs addressing ESMI. The GPO also confirmed that a State may elect the two-year option to expend not less than 20% of the ESMI set-aside by the end of the succeeding fiscal year. For Idaho's current grant period, this provides additional time to meet the expenditure requirement through qualifying ESMI activities. SAMHSA GPO Guidance The GPO further stated that if Idaho appropriately elects and documents the 20% two-year option, SAMHSA would not expect a penalty or negative impact on future MHBG funding. If the expenditure requirement is not met, unexpended ESMI set-aside funds cannot be drawn down and would revert to the Treasury. If ESMI set-aside funds are spent on non-ESMI activities, the amount used for those expenditures would need to be returned. This repayment requirement would not apply to other MHBG funds that were properly spent on allowable activities outside of the ESMI set-aside. The GPO also clarified that there is no separate waiver or exception process for the ESMI expenditure requirement beyond the 20% two-year flexibility. SAMHSA's MHBG closeout team will provide additional guidance regarding documentation expected at closeout to support use of the two-year flexibility. The GPO also clarified that no-cost extensions are not currently an option for the MHBG grant. The 10% ESMI earmark is calculated based on the total MHBG award amount for the grant period, not the amount drawn down or spent to date. Prior Monitoring Process DHW has historically used grant budget papers, LUMA financial system expenditure information, and spreadsheets to track ESMI expenditures; however, prior processes did not provide sufficient controls to ensure the required earmark was met. LUMA expenditure reporting and data processes have since been improved and are now used as part of the monitoring process. Improvements Already Implemented DHW has already taken steps to strengthen the monitoring of MHBG and ESMI expenditures. The MHBG team is developing an MHBG expenditure tracking tool to monitor expenditures at the program level and the amount needed to meet the ESMI earmark. The MHBG team also reviews LUMA expenditure data to monitor spending, identify issues or discrepancies, and determine whether additional follow-up is needed. The Finance and Budget Unit (FABU) updates the LUMA Data tab in the Realignment Project spreadsheet, and Grant Reporting posts the MHBG workpapers for review. The MHBG team reviews the expenditure information and MHBG workpapers and compares ESMI expenditures to the required earmark. The MHBG team also meets quarterly with internal partners to review MHBG grant activities, expenditures, reporting, progress made, and any challenges or concerns. These meetings provide an opportunity to discuss how the grant is progressing, identify potential issues, and determine whether additional follow-up is needed. For MHBG funding, the MHBG Team has implemented an annual Internal Funding Request process to provide a consistent process for requesting, reviewing, approving, and tracking MHBG funding. These improvements will be incorporated into the formal monitoring process outlined below and will continue throughout the grant period. Corrective Action: Idaho Department of Health and Welfare (DHW) will implement a formal process to monitor compliance with the Mental Health Block Grant (MHBG) 10% Early Serious Mental Illness (ESMI) earmarking requirement throughout each grant period. The Adult Mental Health (AMH) Program Manager will oversee implementation of the monitoring process, with review and oversight by the System Design and Implementation Bureau–Adult Behavioral Health (SDI-ABH) Chief and System Design and Implementation Programs Bureau Chief. The MHBG team, ESMI team, Grant Reporting, and Finance and Budget Unit (FABU) will each have defined responsibilities within the monitoring process. The corrective action will include the following steps: 1. Establish an ESMI expenditure tracking process. The MHBG team will develop and maintain an MHBG expenditure tracking tool to identify and track qualifying ESMI expenditures at the program level and compare the expenditure information to the required 10% earmark for the MHBG grant. FABU will maintain the expenditure information in the Realignment Project spreadsheet, and Grant Reporting will provide the MHBG workpapers through its established process. 2. Calculate the required earmark amount. At the beginning of each grant period, the MHBG team will calculate and document the amount required to meet the 10% ESMI earmark and the timeframe for meeting the requirement before the end of the grant period. 3. Monitor ESMI expenditures quarterly. FABU will provide the ESMI personnel costs monthly and continue to update the LUMA Data tab in the Realignment Project with the expenditure information. Grant Reporting will post the MHBG workpapers. The ESMI team will manage the ESMI contracts, provide support to ESMI providers, and review and process ESMI invoices to ensure providers are submitting invoices in accordance with their contracts. The MHBG team will review the workpapers and expenditure information for accuracy, compare the program-level expenditure tracking to the information provided in the grant workpapers, and compare actual ESMI expenditures to the required 10% earmark. The MHBG team will follow the established workpaper review and approval process. 4. Review expenditure status and address potential shortfalls. The MHBG team will review the quarterly expenditure information to identify potential shortfalls and determine whether additional qualifying ESMI expenditures may be needed to meet the 10% ESMI earmark. If a potential shortfall is identified, the MHBG team will work with internal partners and look for additional qualifying ESMI activities, including opportunities with other providers or programs, to address the shortfall and meet the set-aside requirement before the end of the grant period. FABU and Grant Reporting will complete their respective reviews as part of their established processes. The MHBG team will reach out to FABU or Grant Reporting as needed when questions, discrepancies, or clarification are identified. The AMH Program Manager will oversee this process and provide updates to the SDI-ABH Behavioral Health Chief and System Design and Implementation Programs Bureau Chief as needed. 5. Maintain supporting documentation. The MHBG team will maintain documentation supporting the ESMI expenditure monitoring process, including the expenditure tracking, quarterly reviews, required 10% earmark calculations, MHBG grant workpapers reviewed, the timeframe for meeting the requirement, and any identified discrepancies or corrective actions. Documentation will be maintained in the appropriate grant files in accordance with DHW record retention requirements. 6. Complete the grant closure review. FABU will initiate the established grant closure process approximately two months prior to the closure of each grant phase. During Stage 1, the grant will be reviewed to identify the areas and parties that need to be involved in the closure process. During Stage 2, Grant Reporting, Cash Management, and other identified parties will participate in the closure review. The MHBG team will participate in the closure process and review the ESMI expenditures and documentation to verify that the required 10% earmark has been met. Any questions or discrepancies identified during the closure process will be addressed with the appropriate parties. The results of the review will be documented and maintained with the grant records. Anticipated Corrective Action Date: September 30, 2027 Responsible for Corrective Action: Scott Rasmussen, SDI Programs Bureau Chief Scott.Rasmussen@dhw.idaho.gov (208) 334-5500
Finding Number 2025-214: The Department did not review the Child Care Development Fund (CCDF) Administration for Children and Families (ACF) Form 696 report at a sufficient level to identify an $88,822 misstatement. Federal Program: 93.596 - Child Care Mandatory and Matching Funds of the Child Care ...
Finding Number 2025-214: The Department did not review the Child Care Development Fund (CCDF) Administration for Children and Families (ACF) Form 696 report at a sufficient level to identify an $88,822 misstatement. Federal Program: 93.596 - Child Care Mandatory and Matching Funds of the Child Care and Development Fund Related to Prior Finding: 2024-224 Agency’s view: The agency agrees with the finding. Corrective Action: The Grant Reporting Team Lead, Cash and Grants Supervisor, and/or Financial Manager will strengthen its review by performing and documenting an in-depth review of the ACF-696 workpapers each time a grant budget period or phase is rolled forward. This review will be completed within 90 days of the start of the new budget period and will include verification of applicable formulas and other highrisk calculations. To provide ongoing oversight, the Grant Log will be used as a centralized tracking mechanism to document budget period start dates, assigned reviewer, review completion date, identified discrepancies, and resolution of any issues. Reviewers will retain documentation evidencing the review and any corrections made. The Cash and Grants Supervisor or Financial Manager will periodically verify completion of the reviews and evaluate identified discrepancies to determine whether additional corrective action or process changes are necessary. These procedures are intended to provide a documented, repeatable review process with sufficient precision to identify reporting errors. Anticipated Corrective Action Date: January 31, 2027 Responsible for Corrective Action: Randena P. Darpli, CPA, CGFM, Financial Manager dena.darpli@dhw.idaho.gov (208) 334-4909
Finding Number 2025-213: A Social Services Block Grant (SSBG) financial report was not submitted timely. Federal Program: 93.667 - Social Services Block Grant Related to Prior Finding: N/A Agency’s view: The agency agrees with the finding. Corrective Action: The Department will strengthen its existi...
Finding Number 2025-213: A Social Services Block Grant (SSBG) financial report was not submitted timely. Federal Program: 93.667 - Social Services Block Grant Related to Prior Finding: N/A Agency’s view: The agency agrees with the finding. Corrective Action: The Department will strengthen its existing grant reporting controls to provide earlier identification and escalation of issues that could prevent timely submission of required financial reports. The Grant Reporting Team will continue to use the Grant Log to monitor reporting due dates and will identify required source information and establish an internal completion date sufficiently in advance of the grantor deadline. If required information is unavailable, incomplete, or otherwise prevents the report from being finalized, the Grant Reporting Team Lead will escalate the issue to the Cash and Grants Supervisor and/or Financial Manager for resolution. When appropriate, the Department will communicate with the grantor regarding the reporting issue and request an extension before the established due date. Documentation of the request, grantor response, and any related resolution will be retained in the grant file. The Report Routing Cover Sheet will be updated to document the completion of required reporting steps, including confirmation that all necessary supporting information has been received, required management review has occurred, and any extension request or related grantor communication has been documented and retained. The Cash and Grants Supervisor will review the Grant Log and Report Routing Cover Sheets at least monthly to identify upcoming reports, unresolved information requests, and reports at risk of missing their due dates. This process will provide management with sufficient advance notice to intervene when necessary and will establish a documented record demonstrating that required financial reports were monitored through completion and submitted timely. Anticipated Corrective Action Date: January 31, 2027 Responsible for Corrective Action: Randena P. Darpli, CPA, CGFM, Financial Manager dena.darpli@dhw.idaho.gov (208) 334-4909
Finding Number 2025-212: A Social Services Block Grant (SSBG) Post-Expenditure Report did not include a review and approval prior to submission. Federal Program: 93.667 - Social Services Block Grant Related to Prior Finding: N/A Agency’s view: The agency agrees with the finding. Corrective Action: T...
Finding Number 2025-212: A Social Services Block Grant (SSBG) Post-Expenditure Report did not include a review and approval prior to submission. Federal Program: 93.667 - Social Services Block Grant Related to Prior Finding: N/A Agency’s view: The agency agrees with the finding. Corrective Action: The SSBG Post-Expenditure Report has been added to the Department’s Grant Log with the applicable due date and will follow the Department’s established federal financial reporting review process. Prior to submission, the Grant Reporting Team will prepare the report and supporting workpapers, these include reconciliation of reported expenditures to the underlying financial records and documentation supporting the information reported. The report will be routed to the appropriate supervisor and/or Financial Manager for review and approval before submission. The Report Routing Cover Sheet will document the preparer, reviewer, date of review, approval, and any corrections or followup required. The Cash and Grants Supervisor will monitor the Grant Log to ensure the Post-Expenditure Report is routed, reviewed, approved, and submitted by the required due date. Completed Report Routing Cover Sheets and supporting documentation will be retained with the grant records as evidence that the required review and approval occurred prior to submission. This process will provide a documented review and approval control over the SSBG Post-Expenditure Report and ensure that management has evidence that the report was reviewed for accuracy and completeness before it is submitted. Anticipated Corrective Action Date: March 31, 2027 Responsible for Corrective Action: Randena P. Darpli, CPA, CGFM, Financial Manager dena.darpli@dhw.idaho.gov (208) 334-4909
Finding Number 2025-211: Federal Funding Accountability and Transparency Act (FFATA) reports were not reviewed prior to submission and were not submitted timely. Federal Program: 93.568 - Low-Income Home Energy Assistance Related to Prior Finding: N/A Agency’s view: The agency agrees with the findin...
Finding Number 2025-211: Federal Funding Accountability and Transparency Act (FFATA) reports were not reviewed prior to submission and were not submitted timely. Federal Program: 93.568 - Low-Income Home Energy Assistance Related to Prior Finding: N/A Agency’s view: The agency agrees with the finding. Corrective Action: The FFATA Data Worksheet, developed by DHW, includes a list of all obligations of federal funds to subgrantees of $30,000 or more that occurred during the prior month. The due date will be added to the FFATA Data Worksheet to draw particular attention to that. The FFATA Data Worksheet is prepared by the Grant Reporting Team Lead, Financial Specialist, Senior, and the Cash and Grants Supervisor, Financial Specialist, Principal, will be responsible for reviewing it to ensure all applicable subgrants are included for the month. Once that review has occurred and any resulting edits have been made, the FFATA Data Worksheet will be returned to the Grant Reporting Team Lead to enter the data in sam.gov. As sam.gov does not offer a “save” function, there is not a presubmission review. The previously discussed review by the Cash and Grants Supervisor is aimed at preventing any noncompliance related to omission of reportable obligations. A final review aimed at detecting and timely correcting any material misstatements will take place with the Technical Records Specialist completing a data entry review to ensure the data entered into sam.gov agrees with the FFATA Data Worksheet. A FFATA Report Routing Sheet will also be developed to document the above reviews and approvals. The FFATA Report Routing Sheet will also include the due date as another point of monitoring for timely submission. Completed routing sheets and supporting documentation will be retained in the grant file as evidence that the required review, submission, and verification procedures are performed. Anticipated Corrective Action Date: January 31, 2027 Responsible for Corrective Action: Randena P. Darpli, CPA, CGFM, Financial Manager dena.darpli@dhw.idaho.gov (208) 334-4909
Finding Number 2025-210: The Department did not provide documented support to verify the accuracy of a Low Income Energy Assistance Program (LIHEAP) performance report. Federal Program: 93.568 - Low-Income Home Energy Assistance Related to Prior Finding: 2024-230 Agency’s view: The agency agrees wit...
Finding Number 2025-210: The Department did not provide documented support to verify the accuracy of a Low Income Energy Assistance Program (LIHEAP) performance report. Federal Program: 93.568 - Low-Income Home Energy Assistance Related to Prior Finding: 2024-230 Agency’s view: The agency agrees with the finding. Corrective Action: The Department has updated a process document that will strengthen our internal controls regarding the LIHEAP performance report. The Department will compile and retain sufficient documentation to support the information included in the LIHEAP Performance report. Anticipated Corrective Action Date: The process document was updated on September 9, 2026, and will be utilized when completing the upcoming LIHEAP performance report. Responsible for Corrective Action: Lisa Johnson, Program Manager Lisa.Johnson@dhw.idaho.gov (208) 334-5739
Finding Number 2025-209: The Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) project and expenditure reports (P&E) contained misstatements. Federal Program: 21.027 - Coronavirus State and Local Fiscal Recovery Fund Related to Prior Finding: N/A Agency’s view: The Division agrees with the ...
Finding Number 2025-209: The Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) project and expenditure reports (P&E) contained misstatements. Federal Program: 21.027 - Coronavirus State and Local Fiscal Recovery Fund Related to Prior Finding: N/A Agency’s view: The Division agrees with the finding and recognizes that additional controls are needed to ensure CSLFRF Project and Expenditure reports are accurate, fully supported, and more thoroughly reconciled to the State’s accounting system before submission. The Division notes that the identified errors were below the program’s materiality threshold and did not result in a finding of material noncompliance or a material weakness. The Division also corrects reporting errors when they are identified. However, Treasury’s published FAQ and written correspondence (attached) confirm that submitted reports cannot be reopened after the reporting deadline. Because P&E reports are cumulative, any necessary corrections must be reflected in a subsequent reporting period. This required correction process contributed to some of the differences identified during the audit because adjustments related to prior periods were necessarily recorded in later reports. Accordingly, the timing of these adjustments was consistent with Treasury’s prescribed reporting process. Corrective Action: The Division will implement the following corrective actions for all remaining CSLFRF P&E reports: 1. Required agency support. Each administering agency will submit a completed reporting template for every active project. If no activity occurred, the agency must provide documented confirmation of no change. Missing templates will be tracked and escalated before the report is finalized. 2. Reconciliation to Luma. Current and cumulative expenditures and obligations will be reconciled by administering agency to Lumat. All differences will be documented and resolved before submission. 3. Independent detailed review. The review will cover source templates, Luma reconciliations, current and cumulative amounts, prior-period balances, adjustments, and evidence supporting projects reported with no change. 4. Procedures, training, and retention. The Division will document the reporting process, provide training and cross-training to staff involved in CSLFRF reporting, and retain the templates, reconciliations, agency confirmations, review checklist, and final submission support in a centralized reporting file. 5. Correction of prior reporting errors. The Division will correct the identified errors through Treasury's prescribed process. In written email correspondence to Justin Collins, the U.S. Department of the Treasury confirmed: 'Prior submitted reports are not eligible to be reopened for revisions since the reporting deadline has passed. The SLFRF Project and Expenditure Reports are cumulative reports, and any adjustments needed will need to be made in the next reporting period.' Accordingly, the Division will document and include the necessary adjustments in the next available cumulative P&E report and retain Treasury's email as support for the correction method. Anticipated Corrective Action Date: January 31, 2027. The revised controls will be applied before submission of the next required quarterly CSLFRF P&E report. Responsible for Corrective Action: Justin Collins, Deputy Administrator | State Financial Officer Justin.collins@dfm.idaho.gov (208) 854-3063
Finding Number 2025-208: The Department’s Indirect Cost Rate Proposal contained multiple errors. Federal Program: 66.468 - Drinking Water State Revolving Fund Related to Prior Finding: N/A Agency’s view: Due to staff turnover, DEQ agrees that sufficient supporting documentation could not be located ...
Finding Number 2025-208: The Department’s Indirect Cost Rate Proposal contained multiple errors. Federal Program: 66.468 - Drinking Water State Revolving Fund Related to Prior Finding: N/A Agency’s view: Due to staff turnover, DEQ agrees that sufficient supporting documentation could not be located to recreate the data and calculations from the initial indirect cost rate proposal (ICRP) packet. DEQ does not agree with the ‘Cause’ statement of the Management Letter that says, “documentation to support the modified ICRP was not available at the time of our review.” DEQ had the documentation supporting the negotiated rate with the Environmental Protection Agency (EPA). The Legislative Services Office (LSO) Audit Division audited the initial indirect cost rate proposal (ICRP) only, which had errors, but not the final packet that was modified and approved by EPA. The rate used by DEQ for FY25 was reviewed, modified (negotiated) and approved by EPA. Corrective Action: DEQ has had significant turnover in the fiscal office, which has resulted in gaps of knowledge of policies and practices. In summer 2025, DEQ leadership reorganized the fiscal department to improve efficiency, enhance oversight of grants and contracts, and strengthen financial controls. The fiscal office is currently in a rebuilding phase and is dedicated to training and developing staff, implementing best practices, and documenting processes and procedures, including those for federal grant compliance. The agency reached out to our federal oversight agency for assistance and direction with preparing and submitting the indirect cost rate proposal for FY27. We have and are committed to maintaining a file with all supporting documentation used to compile and prepare current and future proposals, as required by 2 CFR 200. Training and developing staff is an ongoing process, along with following updated federal rules and regulations. DEQ staff worked with the Environmental Protection Agency’s Indirect Cost Rate Negotiator to submit the indirect cost rate proposal packet for FY27 and we anticipate significantly reduced errors with the calculations and support for that submittal. Anticipated Corrective Action Date: December 31, 2026 Responsible for Corrective Action: Linda Brown, Financial Executive Officer Linda.Brown@deq.idaho.gov (208) 373-0292
UNAUTHORIZED CHANGE IN REQUIRED MONTHLY DEPOSIT IN REPLACEMENT RESERVE Supportive Housing for the Elderly – Assistance Listing Number 14.155 Recommendation: CLA recommends that processes and procedures be evaluated to strengthen internal control over compliance relating to HUD-restricted accounts. E...
UNAUTHORIZED CHANGE IN REQUIRED MONTHLY DEPOSIT IN REPLACEMENT RESERVE Supportive Housing for the Elderly – Assistance Listing Number 14.155 Recommendation: CLA recommends that processes and procedures be evaluated to strengthen internal control over compliance relating to HUD-restricted accounts. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Actions Taken: Management will review compliance requirements for HUD programs related to replacement reserve withdrawals to ensure they are followed in the future. Name of the contact person(s) responsible for corrective action: Lindsey Beyer, Administrator Planned completion date for corrective action plan: September 2026
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