Corrective Action Plans

The City will implement the following corrective actions to ensure timely compliance with all grant requirements: 1. Grant Compliance Tracking • The City will establish a formal, centralized tracking system for all active grants and associated compliance deadlines, including award package submittals...

The City will implement the following corrective actions to ensure timely compliance with all grant requirements: 1. Grant Compliance Tracking • The City will establish a formal, centralized tracking system for all active grants and associated compliance deadlines, including award package submittals. • Grant requirements will be reviewed on a weekly basis as part of an established internal coordination meeting. • Submission deadlines (including the 60-day award package requirement) will be tracked and monitored proactively. 2. Integration into Existing City Processes • Since contract award actions are already tracked through established internal coordination meetings, staff will incorporate post-award compliance milestones into this workflow. • This ensures continuity between award approval and required grant documentation submittals. 3. Implementation of Grant Management Software • The City is implementing a grant management system through Euna Solutions (formerly AmpliFund) to strengthen compliance and oversight. • This system will: • Centralize grant information and documentation • Track deadlines, requirements, and deliverables in one platform • Provide automated reminders and notifications for key dates • Maintain audit-ready records and reporting • As described by the platform, grant management software helps "centralize and streamline the entire grant lifecycle...ensuring compliance" and provides "automatic notifications to remind you of key dates and deadlines" while improving transparency and accountability. • The system also enables real-time visibility into grant requirements, deadlines, and progress, helping agencies "track compliance requirements... and provide complete audit trails" to reduce risk of future findings. 4. Enhanced Accountability and Oversight • Responsibility for tracking and submitting award packages will be clearly assigned to designated staff, identified as the Senior Civil Engineer in the Capital Improvement Program assigned to the project. • Supervisory review will be incorporated into the weekly tracking process to ensure accountability. Expected Outcome These corrective actions will: • Ensure all award packages and grant deliverables are submitted within required timeframes • Improve internal coordination and accountability • Reduce administrative risk and prevent recurrence of audit findings • Enhance overall grant compliance through centralized tracking and automated reminders Anticipated Completion Date: • Weekly tracking procedures: Implemented immediately • Integration into City processes: Implemented immediately • Grant management software (Euna Solutions): Implementation underway, full integration estimated by January 31, 2027

View Audit 394350

Finding 1186655 (2025-003)

Material Weakness 2025

Prairie State College - Community College District No. 515

IL

Special Tests & Provisions Questioned Costs Student Financial Aid

2025-003: Late Return of Title IV Financial Aid - Student Financial Aid Cluster – Assistance Listing #s 84.007, 84.033, 84.063, 84.268 - Grant Period - Year Ended June 30, 2025 Condition Found During our Return of Title IV Fund testing, we noted that the College did not calculate or return Title IV ...

2025-003: Late Return of Title IV Financial Aid - Student Financial Aid Cluster – Assistance Listing #s 84.007, 84.033, 84.063, 84.268 - Grant Period - Year Ended June 30, 2025 Condition Found During our Return of Title IV Fund testing, we noted that the College did not calculate or return Title IV Student Financial Aid for ten out of twenty-five students tested until after 45 days when the student ceased attendance. We consider the untimely calculation and Return of Title IV Student Financial Aid to be a material weakness relating to the Special Tests and Provisions Compliance Requirement. Corrective Action Plan The weekly Official Withdrawal report is reviewed and processed by the Assistant Dean. As applicable, a week after the calculation is performed and funds are returned to DOE, each student recorded is reviewed on the Common Origination and Disbursement (COD) site to ensure that funds were returned. This additional step is conducted monthly by members of the Financial Aid Management and student worker teams. Additionally, the Assistant Dean performs a monthly check of the Official Withdrawal report to ensure that the Return to Title IV calculation was performed for all required students. The review includes viewing the record in Colleague as well as COD. Responsible Person for Corrective Action Plan Yvette M. McGhee Assistant Dean of Financial Aid Implementation Date of Corrective Action Plan The Correction Action Plan was implemented at the beginning of the Fall 25 semester (approximately August 15, 2025)

View Audit 394348

Finding 1186647 (2025-004)

Material Weakness 2025

Lyford Consolidated Independent School District

TX

Cash Management Reporting School Nutrition Programs § 200.303

Reference Number: 2025-004 No secondary review of meal claim reimbursements prior to submission Corrective Action Plan: The District will implement procedures that incorporate a second review of meal reimbursement claims before the request is submitted for reimbursement during the monthly processing...

Reference Number: 2025-004 No secondary review of meal claim reimbursements prior to submission Corrective Action Plan: The District will implement procedures that incorporate a second review of meal reimbursement claims before the request is submitted for reimbursement during the monthly processing. Contact Person: Cristina Campbell Implementation Time Frame: August 31, 2026

View Audit 394343

Finding 1186644 (2025-004)

Material Weakness 2025

Sterling College

KS

Internal Control / Segregation of Duties Questioned Costs Student Financial Aid

Contact person responsible for correction action – Michell Hall, CFO Anticipated completion date – June 30, 2025 Corrective action Sterling College is in agreement with the finding. At the time of noncompliance in this area the college was transitioning to a new software system for the college. The ...

Contact person responsible for correction action – Michell Hall, CFO Anticipated completion date – June 30, 2025 Corrective action Sterling College is in agreement with the finding. At the time of noncompliance in this area the college was transitioning to a new software system for the college. The software was required to “go dark” for a period time and during this time no processing could be completed. Because of other issues with the system, the R2T4 timeline for returning the funds was not calculated correctly and the deadline was missed by a few days. Administration did not realize the error until after the deadline had passed. As soon as the error was found, the process was completed immediately. We do not expect to have this issue in the future. The R2T4 process for review has always been that one person in the financial aid office is responsible for completing the process and another person reviews the documents once the process is complete. We will continue this process and look for other procedures to implement to ensure an accurate R2T4 process is completed.

View Audit 394339

Finding 1186614 (2025-001)

Material Weakness 2025

Community Action Team, Inc.

OR

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring § 200.303

3/20/2026 Community Action Team, Inc. respectfully submits the following corrective action plan for the year ending June 30, 2025. Kern & Thompson, LLC: Audit period: July 1, 2024 to June 30, 2025 The finding from the schedule of findings are discussed below. FINANCIAL STATEMENT FINDINGS 2025-001 Fe...

3/20/2026 Community Action Team, Inc. respectfully submits the following corrective action plan for the year ending June 30, 2025. Kern & Thompson, LLC: Audit period: July 1, 2024 to June 30, 2025 The finding from the schedule of findings are discussed below. FINANCIAL STATEMENT FINDINGS 2025-001 Federal Award Special Reporting Federal Funding Accountability and Transparency Act (FFATA) Material Non-Compliance and Material Weakness in Internal Controls over Compliance (Repeat of finding 2023-003, 2024-002) Recommendation: The Organization should establish written policies and procedures regarding review of grant agreements for compliance requirements along with written policies and procedures for first-tier subawards including tracking and proper internal control procedures. Action Taken: Management concurs with the finding and has defined corrective action to address it. We understand a material weakness is identified in the internal control over special reporting. We have identified gaps in our reporting processes and worked to implement changes to ensure compliance with special reporting requirements. The responsibility for reporting under the Federal Funding Accountability and Transparency Act (FFATA) will be within the Fiscal Department. Policies and procedures will be updated regarding special reporting requirements. The Fiscal department will also be responsible for reviewing all contracts to identify all compliance requirements. Tracking procedures will be implemented to ensure reports are filed timely. The above identified corrective action was implemented in July 2024 and subsequent filing for 2025 and 2026 are compliant. Stacey Wilson, Fiscal Director, has implemented a tracking system for the FFATA. Should you have any questions regarding this plan, please contact me at 503-366-6563. Sincerely, Daniel Brown Executive Director

View Audit 394320

Finding 1186613 (2025-001)

Material Weakness 2025

Rice Lake Housing Authority

WI

Internal Control / Segregation of Duties

Corrective Action Planned: Due to the Authority's size, it is cost-prohibitive and impractical to achieve the ideal level of segregation of duties. The Authority has implemented as many controls and segregation of duties as practically possible for an organization of this size. Completion Date: Ongo...

Corrective Action Planned: Due to the Authority's size, it is cost-prohibitive and impractical to achieve the ideal level of segregation of duties. The Authority has implemented as many controls and segregation of duties as practically possible for an organization of this size. Completion Date: Ongoing

View Audit 394318

Finding 1186608 (2025-001)

Material Weakness 2025

1260 Housing Development Corporation

PA

HUD Housing Programs Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

It is the goal of the Corporation to maintain compliance with regulatory requirements. Where hardships are encountered, the Corporation remains in ongoing communication with respective regulatory agencies to promote transparency and mitigate risk of loss in funding or default.

View Audit 394308

Finding 1186607 (2025-002)

Material Weakness 2025

Randolph School District

WI

Allowable Costs / Cost Principles Cash Management Internal Control / Segregation of Duties

Finding #2025-002: #84.184X – Wisconsin Well Be’s School-Based Mental Health Consortium Federal Grantor Agency: U.S. Department of Education Compliance Requirement: Cash Management Condition: During our audit procedures, it was determined that there was miscommunication between the grant manager and...

Finding #2025-002: #84.184X – Wisconsin Well Be’s School-Based Mental Health Consortium Federal Grantor Agency: U.S. Department of Education Compliance Requirement: Cash Management Condition: During our audit procedures, it was determined that there was miscommunication between the grant manager and the business manager. Therefore, an additional claim was made which resulted in the District receiving federal funds in excess of immediate needs. Effect: The District received federal funds in excess of immediate needs and before disbursement for allowable program costs. Cause: The District’s internal controls failed to identify a duplicate claim submitted for federal funds. Criteria: It is necessary under U.S. Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (commonly called "Uniform Guidance") and under most federal grant agreements that the recipient must implement financial management system that provide proper fund control, which ensures funds used in a timely fashion. Recommendation: We recommend that the District implement a pre-submission check to verify that invoices have not been previously claimed. Response: The funds were fully used up in the following fiscal year as expenditures were incurred. The grant funding has been cut as of December 31, 2025. This finding has been resolved.

View Audit 394302

Finding 1186605 (2025-005)

Material Weakness 2025

Summit Academy Oic

MN

Questioned Costs Student Financial Aid Significant Deficiency

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend that the Academy implemented a process to ensure credit balances are returned timely based on the regulations set forth by the Department of Education. Explanation of disagreement with audit finding: T...

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend that the Academy implemented a process to ensure credit balances are returned timely based on the regulations set forth by the Department of Education. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Financial Aid Coordinators have been instructed to run the credit balance report more frequently after aid has been posted to identify students with a credit balance. Also, once a request has been made to rectify the credit balance, it will become top priority to ensure its completion is within 10 days. Name(s) of the contact person(s) responsible for corrective action: Rachael Farnell Planned completion date for corrective action plan: 07/01/2025 If the Department of Education has questions regarding this plan, please call Rachael Farnell at (612-278-5271)

View Audit 394300

Finding 1186604 (2025-004)

Material Weakness 2025

Summit Academy Oic

MN

Questioned Costs Student Financial Aid Significant Deficiency

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the Academy reevaluate its policies around accurate R2T4 calculations as well as timely return of funds to COD. Explanation of disagreement with audit finding: There is no disagreement with the audit f...

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the Academy reevaluate its policies around accurate R2T4 calculations as well as timely return of funds to COD. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: R2T4 calculations will now be handled by the Financial Aid Manager & to ensure timely refunds; the Financial Aid Manager will process R2T4’s every two weeks to ensure the timeliness of any refunds. Name(s) of the contact person(s) responsible for corrective action: Rachael Farnell Planned completion date for corrective action plan: 07/01/2025

View Audit 394300

Finding 1186603 (2025-003)

Material Weakness 2025

Summit Academy Oic

MN

Questioned Costs Student Financial Aid Eligibility

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the Academy implement a process to ensure student is being properly awarded based on their SAI and enrollment status. Explanation of disagreement with audit finding: There is no disagreement with the a...

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the Academy implement a process to ensure student is being properly awarded based on their SAI and enrollment status. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Financial Aid Coordinators now have a corrected calculator to use when determining the student’s Pell eligibility based on their SAI. The Financial Aid Manager will also look over the award to ensure proper funding has been put into place. Name(s) of the contact person(s) responsible for corrective action: Rachael Farnell Planned completion date for corrective action plan: 07/01/2025

View Audit 394300

Finding 1186602 (2025-002)

Material Weakness 2025

Summit Academy Oic

MN

Questioned Costs Student Financial Aid Reporting § 200.303

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the Academy reevaluate its procedures and review policies surrounding controls implemented for Title IV Aid. Explanation of disagreement with audit finding: There is no disagreement with the audit find...

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the Academy reevaluate its procedures and review policies surrounding controls implemented for Title IV Aid. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Per finding 2025-002, Summit Academy has been completing the control piece when processing Title IV aid. To further the control of this process, the Financial Aid Manager will provide initials to show evidence of review. Name(s) of the contact person(s) responsible for corrective action: Rachael Farnell Planned completion date for corrective action plan: 07/01/2025

View Audit 394300

Finding 1186601 (2025-001)

Material Weakness 2025

Summit Academy Oic

MN

Questioned Costs Student Financial Aid Reporting

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the Academy reevaluate its procedures and review policies surrounding reporting status changes to NSLDS to put a process in place to ensure the student status changes are being reported timely. Explana...

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the Academy reevaluate its procedures and review policies surrounding reporting status changes to NSLDS to put a process in place to ensure the student status changes are being reported timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Financial Aid Manager will run reports every thirty days and students will be certified in NSLDS every 30 days to ensure their enrollment status is reported in a timely manner. The Financial Aid Manager is also tracking the NSLDS changes on a spreadsheet. Name(s) of the contact person(s) responsible for corrective action: Rachael Farnell Planned completion date for corrective action plan: 07/01/2025

View Audit 394300

Finding 1186589 (2025-001)

Material Weakness 2025

Women in Safe Homes, Inc.

AK

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles

Federal Single Audit Finding: 2025-001 Reporting - Significant Deficiency in Internal Control over Compliance Name of Contact Person: Adrienne Gaines, Executive Director Corrective Action: WISH will reinforce existing policies requiring documented evidence of review and approval for all key reports....

Federal Single Audit Finding: 2025-001 Reporting - Significant Deficiency in Internal Control over Compliance Name of Contact Person: Adrienne Gaines, Executive Director Corrective Action: WISH will reinforce existing policies requiring documented evidence of review and approval for all key reports. These controls will ensure approval via physical signature or electronic approval via email correspondence of each key report. Periodic monitoring will be performed to ensure compliance with documentation requirements. Proposed Completion Date: June 30, 2026

View Audit 394292

Finding 1182962 (2025-302)

Material Weakness 2025

State of Wisconsin

WI

Reporting Internal Control / Segregation of Duties Cash Management § 200.303

Department staff has reviewed the Legislative Audit Bureau’s (LAB) interim audit memo for Finding 2025-302: Grants to States for Medicaid and Children’s Health Insurance Program – Agency Directives. This is the department’s Corrective Action Plan.  Recommendation (2025-302): Grants to States for Me...

Department staff has reviewed the Legislative Audit Bureau’s (LAB) interim audit memo for Finding 2025-302: Grants to States for Medicaid and Children’s Health Insurance Program – Agency Directives. This is the department’s Corrective Action Plan.  Recommendation (2025-302): Grants to States for Medicaid and Children’s Health Insurance Program – Agency Directives. We recommend the Wisconsin Department of Health Services: • Enforce with the fiscal agent that directives require appropriate approval and that the fiscal agent should confirm any directive where the approver may not be authorized; • Ensure that the listings of authorized directive approvers provided to the fiscal agent are updated at least quarterly; • Review policies related to directives, updated the policies to identify those directives that require an approver other than the creator, and document justifications for any directives for which the creator and approver may be the same employee; and • Access the feasibility of changes to the PRISM system that would enforce an approval from a user other than the creator of a directive. Wisconsin Department of Health Services Planned Corrective Action: DMS will ensure that the fiscal agent follows DHS policy to confirm directive approvals. In addition, DHS will update the authorized approvers list at least quarterly, define in policy when an approver other than the creator is needed, and consider changes to the PRISM system to enforce separation of duties between creator and approver. If system changes are feasible, the corrective actions will require additional time to complete beyond what is needed for the policy and procedure changes. Anticipated Completion Date: June 30, 2026 Persons responsible for corrective action: Carrie Kahn, Section Manager Systems Infrastructure Accountability Section, Bureau of Fiscal Accountability and Management, Division of Medicaid Services CarriePKahn@dhs.wisconsin.gov

View Audit 394279

Finding 1182943 (2025-303)

Material Weakness 2025

State of Wisconsin

WI

Internal Control / Segregation of Duties Questioned Costs Procurement, Suspension & Debarment § 200.303

Department staff has reviewed the Legislative Audit Bureau’s (LAB) interim audit memo for Finding 2025-303: WIC Supplemental Nutrition Program for Women, Infants, and Children – Service Organization Controls. This is the department’s Corrective Action Plan.  Recommendation (2025-303): WIC Supplemen...

Department staff has reviewed the Legislative Audit Bureau’s (LAB) interim audit memo for Finding 2025-303: WIC Supplemental Nutrition Program for Women, Infants, and Children – Service Organization Controls. This is the department’s Corrective Action Plan.  Recommendation (2025-303): WIC Supplemental Nutrition Program for Women, Infants, and Children – Service Organization Controls. We recommend the Wisconsin Department of Health Services: • Develop and document procedures to complete an annual assessment of the controls in place by each contractor that provides support and security for an IT system used in administering the WIC Special Supplemental Nutrition Program for Women, Infants, and Children program, including the support provider, the cloud provider, and the EBT provider; • Obtain annually available service organization controls audit reports and perform an annual review that includes an assessment of the identified internal control deficiencies and a determination of whether the relevant complementary user entity controls are implemented; and • Prepare and maintain documentation of its annual review and assessment. Wisconsin Department of Health Services Planned Corrective Action: In partnership with DHS’s Information Security Section (ISS), the WIC Program will develop and document procedures to complete an annual assessment of security controls. The WIC Program will annually request SOC reports from all vendors. ISS will review SOC reports identifying deficiencies and risks and ensuring the user entity controls are addressed. DHS will then prepare and maintain documentation of its annual SOC reviews and assessments. Anticipated Completion Date: June 1, 2026 Persons responsible for corrective action: Kari Malone, Section Manager WIC and Nutrition Section, Division of Public Health kari.malone@dhs.wisconsin.gov

View Audit 394279

Finding 1182900 (2025-029)

Material Weakness 2025

State of South Carolina

SC

Eligibility Internal Control / Segregation of Duties Questioned Costs

The South Carolina Department of Social Services (SCDSS) respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbere...

The South Carolina Department of Social Services (SCDSS) respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT U.S. Department of Health and Human Services Refugee and Entrant Assistance – Assistance Listing No. 93.566 Disposition of Audit Finding: The SCDSS concurs with the audit finding. Corrective Action: SCDSS will collaborate closely with SCDHHS to ensure eligibility policies and procedures for the Refugee Medical Assistance (RMA) program clearly and accurately define program eligibility requirements. SCDSS will also ensure that staff responsible for processing RMA applications receive appropriate training to apply these policies consistently and correctly. To support ongoing compliance, SCDSS will implement a quarterly monitoring plan designed to identify any individuals incorrectly categorized under RMA. SCDSS will maintain continuous communication and follow-up with SCDHHS to verify timely implementation of these corrective actions and to address any issues that arise. Anticipated Completion Date: July 1, 2026 Names of the contact persons responsible for corrective action: • Ambrea Jones, State Refugee Coordinator at 803-898-7303 • Brittney White, State Refugee Health Coordinator at 803-898-7545

View Audit 394274

Finding 1182892 (2025-021)

Material Weakness 2025

State of South Carolina

SC

Subrecipient Monitoring Cash Management Internal Control / Segregation of Duties § 200.303

The Department of Environmental Services respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The finding from the schedule of findings and questioned costs is discussed below. The finding is numbered consistently with ...

The Department of Environmental Services respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The finding from the schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT U.S. Environmental Protection Agency Performance Partnership Grants – Assistance Listing No. 66.605 Disposition of Audit Finding: The Department of Environmental Services agrees with the audit finding. Corrective Action: A new process has been put into place where the draws are performed by one staff member and then reviewed by another. This process is documented with signatures of both staff members. Anticipated Completion Date: Processed started July 1, 2025, and will ongoing Simon Li and Doug Beaty are responsible for corrective action: • Simon Li at 803-898-3443 • Doug Beaty at 803-898-3453

View Audit 394274

Finding 1182889 (2025-018)

Material Weakness 2025

State of South Carolina

SC

Cash Management Subrecipient Monitoring Internal Control / Segregation of Duties § 200.303

The South Carolina Department of Environmental Services (SCDES) respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are ...

The South Carolina Department of Environmental Services (SCDES) respectfully submits the following corrective action plan for the year ended June 30, 2025, on behalf of the State of South Carolina. The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAM AUDIT U.S. Environmental Protection Agency Drinking Water – Assistance Listing No. 66.468 Disposition of Audit Finding: The SCDES concurs with the audit finding. Corrective Action: Grant draws will be created by one Budget staff member and reviewed by another Budget staff member. The creation and review process of the draws will be supported by two signatures recorded on the draw form, that of the creator and that of the reviewer. Anticipated completion date: July 1, 2025 the process was put into place. The Budget staff along with the Program staff will be responsible for the corrective action plan. Simon Li 803-898-3443

View Audit 394274

Finding 1182850 (2025-001)

Material Weakness 2025

Research for Action, Inc.

PA

Internal Control / Segregation of Duties Cash Management

During our testing of cash management procedures, we noted that the Organization did not maintain documentation evidencing review or approval of federal fund drawdowns. The drawdown files tested did not include evidence demonstrating that an authorized individual reviewed and approved the request pr...

During our testing of cash management procedures, we noted that the Organization did not maintain documentation evidencing review or approval of federal fund drawdowns. The drawdown files tested did not include evidence demonstrating that an authorized individual reviewed and approved the request prior to submission. Recommendation: We recommend that the Organization establish and implement a formalized approval process for all federal fund drawdowns. This process should include documented review and approval by an authorized individual prior to the submission of each draw request. The Organization should also ensure adequate staffing and clear assignment of responsibilities within the finance department to maintain proper segregation of duties and consistent oversight. Implementing these procedures will strengthen internal controls, reduce the risk of inaccuracies or unauthorized draws, and promote full compliance with federal cash management requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization will implement an approval system. Name(s) of the contact person(s) responsible for corrective action: Myrteny Metzger, Comptroller and Cyra Copeland, Senior Director of Finance Planned completion date for corrective action plan: the planned corrective action will be completed by February 2026.

View Audit 394260

Finding 1182842 (2025-020)

Material Weakness 2025

State of Vermont

VT

Questioned Costs Student Financial Aid Eligibility § 200.303

Reference Number: 2025-020 Prior Year Finding: No Federal Agency: U.S. Department of Health and Human Services State Agency: Agency of Human Services Federal Program: Foster Care – Title IV-E Assistance Listing Number: 93.658 Award Number and Year: 2401VTFOST (10/1/2023 – 9/30/2025) 2501VTFOST (10/1...

Reference Number: 2025-020 Prior Year Finding: No Federal Agency: U.S. Department of Health and Human Services State Agency: Agency of Human Services Federal Program: Foster Care – Title IV-E Assistance Listing Number: 93.658 Award Number and Year: 2401VTFOST (10/1/2023 – 9/30/2025) 2501VTFOST (10/1/2024 – 9/30/2026) Compliance Requirement: Eligibility Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance Recommendation: We recommend that the Agency review and enhance procedures and controls to ensure that it correctly identifies the eligible federal program for all cases coded in CDDIS. We further recommend that children on whose behalf payments are charged to Foster Care are eligible for benefits under the program. Views of responsible officials: Management agrees with the finding. Corrective Action Plan: The Agency will work with the IT systems of both the Family Services and Child Development Divisions to ensure that accurate eligibility information is shared between the systems. This will include: 1. What program each child is eligible for, adoption or foster care 2. The accurate start and end dates of eligibility 3. Any changes to eligibility during the life of a case The staff from Family Services will ensure that all Title IV-E eligibility information is shared with IT as they create the processes to share that information with the Child Development Division. The staff at the Child Development Division will work with their IT vendor to ensure all updates are completed and tested to ensure that Title IV-E funds are being claimed appropriately. Scheduled Completion Date of Corrective Action Plan: The underlying work to clarify the eligibility information needed has already begun and the process of updating the IT systems on both the FSD and CDD sides will be completed by April 1, 2026. Contacts for Corrective Action Plan: Heather McLain, Revenue Enhancement Director, Family Services, heather.mclain@vermont.gov Brenda Hallock, Revenue Team Lead, Family Services, brenda.hallock@vermont.gov Karolyn Long, Operations Director, Child Development Division, karolyn.long@vermont.gov Ed Dwinell, Financial Director, DCF Business Office, ed.dwinell@vermont.gov Peter Moino, AHS Director of Internal Audit, peter.moino@vermont.gov

View Audit 394235

Finding 1182841 (2025-019)

Material Weakness 2025

State of Vermont

VT

Special Tests & Provisions Questioned Costs Subrecipient Monitoring

Reference Number: 2025-019 Prior Year Finding: 2024-020 Federal Agency: U.S. Department of Health and Human Services State Agency: Agency of Human Services Federal Program: CCDF Cluster Assistance Listing Number: 93.575, 93.596 Award Number and Year: 2401VTCCDD (10/1/2023 – 9/30/2026) 2501VTCCDD (10...

Reference Number: 2025-019 Prior Year Finding: 2024-020 Federal Agency: U.S. Department of Health and Human Services State Agency: Agency of Human Services Federal Program: CCDF Cluster Assistance Listing Number: 93.575, 93.596 Award Number and Year: 2401VTCCDD (10/1/2023 – 9/30/2026) 2501VTCCDD (10/1/2024 – 9/30/2027) Compliance Requirement: Special Tests and Provisions – Health and Safety Requirements Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance Recommendation: We recommend that the Agency review and enhance training monitoring procedures and controls to ensure that all child care providers complete required health and safety training. The Agency should update its training content to include all required elements and ensure that provider corrective action plans and documentation are properly maintained. Site visit documentation should clearly indicate the results of training requirement monitoring. Views of responsible officials: Management agrees with the finding. Corrective Action Plan: DCF-CDD continues their rule revision process and now has the added support of a project manager and legal counsel. The revision process has been rigorous, and the rules have undergone several drafts. The public has had another opportunity to provide feedback on the latest draft prior to the formal promulgation process. Additionally, CDD received technical assistance from our federal partners to ensure our rule revisions met all CCDF requirements and will continue to refer to this document as we move the rules towards promulgation. The proposed rules will address the findings documented in this audit related to the federal requirement that pre-service orientation includes the required eleven (11) healthy and safety topics which staff will be required to complete, “before being left alone with children, counted in staff to child ratios, or within one (1) month of starting employment, whichever comes first.” DCF-CDD submitted an RFP for a new pre-service orientation training to include all the required health and safety topics that must be covered within the first month of employment. CDD will continue to work with the apparent successful bidder to ensure these modules are available to the field in 2026. DCF-CDD licensing unit will review the results of the single audit with licensing staff and our partners at Northern Lights at CCV (NL). CDD will begin a shift in our site visit preparation process that includes NL providing the division with a complete list of staff who have and who have not completed the required number of annual training hours. CDD licensing will document deficiencies in site visit reports and will require a plan from the providers to come into compliance. Scheduled Completion Date of Corrective Action Plan: DCF-CDD anticipates the licensing rules will be submitted to ICAR on February 20, 2026. This date may need to shift dependent on legal counsel’s final review of the rules and the weeks needed to prepare the documents required at this stage in the promulgation. CDD will be provided with a promulgation timeline which we aim to have completed before the end of 2026. DCF-CDD will seek outside contractual support to develop guidance manuals and training for the field on the rule changes, which includes shifts in required pre-service orientation topics. DCF-CDD pre-service orientation modules are scheduled to be completed within six (6)-nine (9) months from when the contract has been signed between the SOV and the apparent successful bidder. DCF-CDD will implement the site visit preparation practice shift by April-May 2026. This work requires NL staff to shift job responsibilities to accommodate the ongoing training review of the staff for all providers. By January 26, 2026, CDD director of child care licensing will meet with the licensing supervisors to review the results of this audit, review the CAP, and establish a plan for supervisory oversight at it relates to licensors documenting training deficiencies when conducting site visits. By January 27, 2026, CDD director of child care licensing will meet with the licensing unit to review the results of this audit, review the CAP, discuss the shift in site visit preparation practice as we partner with NL who will be reviewing compliance with annual training hours, and discuss the expectations around how deficiencies must be documented in annual site visit reports. Contacts for Corrective Action Plan: Beth Maurer, Director of Child Care Licensing, elizabeth.maurer@vermont.gov Kelly Lyford, Licensing Supervisor, kelly.lyford@vermont.gov Janet McLaughlin, CDD Deputy Commissioner, janet.mclaughlin@vermont.gov Dawn Rouse, Director of Statewide Systems, dawn.rouse@vermont.gov Peter Moino, AHS Director of Internal Audit, peter.moino@vermont.gov

View Audit 394235

Finding 1182838 (2025-018)

Material Weakness 2025

State of Vermont

VT

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring § 200.303

Reference Number: 2025-018 Prior Year Finding: 2024-018, 2023-024 Federal Agency: U.S. Department of Health and Human Services State Agency: Agency of Human Services Federal Program: COVID-19 - Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Hea...

Reference Number: 2025-018 Prior Year Finding: 2024-018, 2023-024 Federal Agency: U.S. Department of Health and Human Services State Agency: Agency of Human Services Federal Program: COVID-19 - Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crises Assistance Listing Number: 93.391 Award Number and Year: NH75OT000034 (6/1/2021 – 3/24/2025) Compliance Requirement: Reporting – Federal Funding Accountability and Transparency Act (FFATA) Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Recommendation: We recommend the Agency complete implementation of its prior year CAP to ensure that all required subawards and subaward modifications are reported timely to FSRS in accordance with FFATA requirements and that all previously issued subawards are reported. Views of responsible officials: Management agrees with the finding. Corrective Action Plan: The Financial Administrator will ensure that subrecipient grants containing federal funding that meet the FFATA reporting threshold are marked as “required for entry into the FFATA system” upon grant execution. The Financial Administrator and Manager will then confirm that all executed agreements that meet the FFATA reporting requirement have been entered and submitted into the federal reporting system by the last business day of each month. Please note that the scheduled completion date is February 1, 2023 as the same FFATA reporting finding was identified for a different program during the SFY22 Single Audit, and the corrective action plan was applied across the Department as a whole. The FFATA issues identified in the SFY25 Single Audit pre-dated the implementation of the Health Department’s original corrective action plan. Scheduled Completion Date of Corrective Action Plan: February 1, 2023 Contacts for Corrective Action Plan: Lillian Smith, Financial Administrator, Vermont Department of Health, lillian.smith@vermont.gov Jessica Brown, Financial Manager, Vermont Department of Health, jessica.brown@vermont.gov Megan Hoke, Financial Director, Vermont Department of Health, megan.hoke@vermont.gov Peter Moino, Director of Internal Audit, Vermont Agency of Human Services, peter.moino@vermont.gov

View Audit 394235

Corrective Action Plans

Filters