Corrective Action Plans

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Noncompliant Rebate Calculation Review Controls - WIC - DPHHS - The Montana Department of Public Health and Human Services implemented a documentation tracking system and updated its procedures to require a documented review before invoicing. The department also retroactively reviewed and documented...
Noncompliant Rebate Calculation Review Controls - WIC - DPHHS - The Montana Department of Public Health and Human Services implemented a documentation tracking system and updated its procedures to require a documented review before invoicing. The department also retroactively reviewed and documented all rebate calculations for fiscal year 2026. The department completed this corrective action in May 2026. Responsible Party - Brenda Crawford, Internal Control and Compliance Officer, Montana Department of Public Health and Human Services Target Implementation Date - 5/15/2026
Inadequate Control Over Federal Reporting - UI - DLI - The Montana Department of Labor and Industry resolved the control deficiencies related to the Employment and Training Administration (ETA) Forms 191, 9050, and 9052 through the modernization of the Unemployment Insurance system, which replaced t...
Inadequate Control Over Federal Reporting - UI - DLI - The Montana Department of Labor and Industry resolved the control deficiencies related to the Employment and Training Administration (ETA) Forms 191, 9050, and 9052 through the modernization of the Unemployment Insurance system, which replaced the Montana Integrated System to Improve Customer Service (MISTICS) with the Montana Unemployment Services Environment (MUSE). The new MUSE system became operational in October 2023, after the July through September 2023 reporting period covered by the finding. The department has also updated its procedures to ensure supervisory reviews and approvals are consistently documented and retained. Approval emails are now saved in monthly electronic shared files. Centralized retention in these shared files provides access to authorized staff, supports reported data, and reduces the risk of documentation being unavailable due to staff turnover or loss of individual records. Responsible Party - Robin Graham, Central Services Division Administrator, Montana Department of Labor and Industry Target Implementation Date - 12/31/2026
Inadequate Support for Benefit Accuracy Measurement Reviews - UI - DLI - The Montana Department of Labor and Industry began retaining copies of the on-demand report generated from the Sun System upon learning of the concern. This process continued until October 2024, when staff confirmed that the ne...
Inadequate Support for Benefit Accuracy Measurement Reviews - UI - DLI - The Montana Department of Labor and Industry began retaining copies of the on-demand report generated from the Sun System upon learning of the concern. This process continued until October 2024, when staff confirmed that the newly developed view in the Montana Unemployment System Enhancement (MUSE) system was functioning as intended. The MUSE system now includes a real-time interface that compares its data with the Sun System, providing staff with immediate information to monitor the volume of items selected for workload sampling. Responsible Party - Robin Graham, Central Services Division Administrator, Montana Department of Labor and Industry Target Implementation Date - 12/31/2026
Inaccurate Federal Reporting - UI - DLI - The Montana Department of Labor and Industry has made several revisions to the Employment and Training Administration (ETA) 2112 preparation and reconciliation process. Additional notations have been added to the existing ETA 2112 preparation workbook, along...
Inaccurate Federal Reporting - UI - DLI - The Montana Department of Labor and Industry has made several revisions to the Employment and Training Administration (ETA) 2112 preparation and reconciliation process. Additional notations have been added to the existing ETA 2112 preparation workbook, along with screenshots to assist the preparer with accuracy. Unemployment Insurance transactional tasks have been re-assigned to the appropriate accounting and budgeting staff to improve workflow. An additional separate but collaborative bank-to-SABHRS reconciliation has been incorporated into the process. Monthly Unemployment Insurance process meetings have been reinstated for all staff who perform tasks that impact the preparation and reconciliation of the ETA 2112 report. The purpose of these meetings is to discuss any issues regarding the process and to check in on the completion of the report and its components. The department will be engaging with a sister state that uses the same vendor software for its Unemployment Insurance system in an information-sharing session. The designated state has staff experienced in ETA 2112 preparation and submission, and department staff hope to confirm that the system report utilized in the process reflects accurate data. The department has also re-engaged a previously procured vendor to conduct a reporting accuracy and efficiency assessment of the Unemployment Insurance Program. Responsible Party - Robin Graham, Central Services Division Administrator, Montana Department of Labor and Industry Target Implementation Date - 12/31/2026
Inadequate Controls Over Maintenance of Effort Calculations - Title I - OPI - The Montana Office of Public Instruction does not concur with this finding. The Office reviews the values provided by the School Finance Division and tests enrollment, average daily attendance, and average number belonging...
Inadequate Controls Over Maintenance of Effort Calculations - Title I - OPI - The Montana Office of Public Instruction does not concur with this finding. The Office reviews the values provided by the School Finance Division and tests enrollment, average daily attendance, and average number belonging to determine whether a local education agency is subject to a percentage reduction under maintenance of effort requirements. When applicable, the Office communicates these results to the local education agency. If a maintenance of effort finding occurs more than once within a five-year period, a reduction is applied to the local education agency’s Title I allocation, and that reduction is entered into the grants management system (eGrants). Responsible Party - April Grady, Chief Financial Officer, Montana Office of Public Instruction Target Implementation Date - N/A
Inadequate Access and Privilege Controls - TANF - LIHEAP - CHIP - Medicaid - DPHHS - The Montana Department of Public Health and Human Services completed the development of its accounts matrix for the CHIMES eligibility system in October 2025 and implemented an enhanced process for conducting and do...
Inadequate Access and Privilege Controls - TANF - LIHEAP - CHIP - Medicaid - DPHHS - The Montana Department of Public Health and Human Services completed the development of its accounts matrix for the CHIMES eligibility system in October 2025 and implemented an enhanced process for conducting and documenting access reviews, including verification of user permissions. These improvements have been fully incorporated into routine operations, and the department has implemented all aspects of the audit recommendations. Responsible Party - Brenda Crawford, Internal Control and Compliance Officer, Montana Department of Public Health and Human Services Target Implementation Date - 10/24/2025
Inadequate Manual Override Controls - TANF - DPHHS - The Montana Department of Public Health and Human Services implemented a business process in its eligibility system (CHIMES) on May 5, 2026, and revised it on August 25, 2026, to address common override reasons and to document the basis for each o...
Inadequate Manual Override Controls - TANF - DPHHS - The Montana Department of Public Health and Human Services implemented a business process in its eligibility system (CHIMES) on May 5, 2026, and revised it on August 25, 2026, to address common override reasons and to document the basis for each override. Effective August 19, 2026, staff added a targeted question to the monitoring tool regarding manual overrides and issuances to ensure these items are consistently reviewed. The department considers this corrective action implemented and will evaluate its effectiveness during the upcoming monitoring cycle. Responsible Party - Brenda Crawford, Internal Control and Compliance Officer, Montana Department of Public Health and Human Services Target Implementation Date - 8/25/2026
Inadequate ACF-199 Reporting Controls - TANF - DPHHS - The Montana Department of Public Health and Human Services implemented additional internal controls over the ACF-199 reports in December 2024 and completed this corrective action. This implementation was in response to the prior audit, and the c...
Inadequate ACF-199 Reporting Controls - TANF - DPHHS - The Montana Department of Public Health and Human Services implemented additional internal controls over the ACF-199 reports in December 2024 and completed this corrective action. This implementation was in response to the prior audit, and the corrective action plan should have been included with that audit. The timing of the implementation occurred between the prior audit and the current audit period. Responsible Party - Brenda Crawford, Internal Control and Compliance Officer, Montana Department of Public Health and Human Services Target Implementation Date - 12/31/2024
Inaccurate ACF‑204 Reporting Controls - TANF - DPHHS - The Montana Department of Public Health and Human Services revised its instructions and implemented a mandatory review checklist on August 26, 2026. The updated process includes enhanced review steps and requires formal sign-off by both the prog...
Inaccurate ACF‑204 Reporting Controls - TANF - DPHHS - The Montana Department of Public Health and Human Services revised its instructions and implemented a mandatory review checklist on August 26, 2026. The updated process includes enhanced review steps and requires formal sign-off by both the program manager and the Temporary Assistance for Needy Families (TANF) unit designee prior to final report submission to ensure data accuracy. Responsible Party - Brenda Crawford, Internal Control and Compliance Officer, Montana Department of Public Health and Human Services Target Implementation Date - 8/26/2026
Inaccurate RSA-911 Case Service Report - Voc Rehab - DPHHS - The Montana Department of Public Health and Human Services strengthened internal controls in August 2026 to ensure employment start dates are consistently and accurately captured in the RSA-911 report. The employment start date information...
Inaccurate RSA-911 Case Service Report - Voc Rehab - DPHHS - The Montana Department of Public Health and Human Services strengthened internal controls in August 2026 to ensure employment start dates are consistently and accurately captured in the RSA-911 report. The employment start date information was present in the department's case management system (Madison) and in case documentation; the condition arose in the system's reporting extraction layer, which caused accurate underlying data to be misstated in the submitted report. Because approximately 75 percent of cases in each RSA-911 submission carry forward from one reporting cycle to the next, the defect in the reporting layer affected multiple reporting periods. The department corrected the system's program field data in August 2026, prior to submitting the April through June 2026 RSA-911 report due that month. The department also implemented a validation check to detect and correct mismatches in future reports. The department has implemented corrective action and is working with its federal grantor agency to correct the reports submitted in fiscal year 2026. Responsible Party - Brenda Crawford, Internal Control and Compliance Officer, Montana Department of Public Health and Human Services Target Implementation Date - 8/21/2026
Inadequate Treasury State Agreement Preparation and Controls - O&M - Innovation - DOA - The Montana Department of Administration will each fiscal year identify major Cash Management Improvement Act programs, prepare and distribute interest-calculation spreadsheets to agencies, submit the annual repo...
Inadequate Treasury State Agreement Preparation and Controls - O&M - Innovation - DOA - The Montana Department of Administration will each fiscal year identify major Cash Management Improvement Act programs, prepare and distribute interest-calculation spreadsheets to agencies, submit the annual report, and prepare and submit the Treasury State Agreement. Responsible Party - Jennifer Thompson, State Accountant, Montana Department of Administration Target Implementation Date - 6/30/2026
Noncompliant Closeout Reporting - O&M - DMA - The Montana Department of Military Affairs concurs with the finding. In August 2024, the department and the United States Property and Fiscal Office (USPFO) identified older awards that remained open and should have been closed by prior staff. From Augus...
Noncompliant Closeout Reporting - O&M - DMA - The Montana Department of Military Affairs concurs with the finding. In August 2024, the department and the United States Property and Fiscal Office (USPFO) identified older awards that remained open and should have been closed by prior staff. From August through December 2024, the department worked with the USPFO to identify, reconcile, and close the outstanding awards. The department has since implemented a master award tracker to identify each award’s period-of-performance end date, applicable closeout deadline, and report status. The department reviews the tracker regularly and notifies staff of approaching closeouts to ensure final reports are accurate and submitted within required timeframes. Responsible Party - Janae Brower, Chief Financial Officer, Montana Department of Military Affairs Target Implementation Date - 11/30/2026
Noncompliant Timely Reimbursement Controls - O&M - DMA - The Montana Department of Military Affairs partially concurs with the finding. The department recognizes the need to submit reimbursement requests timely and has implemented improved tracking procedures and a regular reimbursement‑request proc...
Noncompliant Timely Reimbursement Controls - O&M - DMA - The Montana Department of Military Affairs partially concurs with the finding. The department recognizes the need to submit reimbursement requests timely and has implemented improved tracking procedures and a regular reimbursement‑request process, generally on a bi‑weekly or monthly basis, to support timely submission of SF‑270s. However, the department cannot submit reimbursement requests until the applicable federal funding modification has been approved and funding has been allocated by the National Guard; therefore, delays attributable to pending federal funding availability are outside the department’s control. The department will continue to track expenditures and reimbursement due dates by award, monitor the status of funding modifications, submit reimbursement requests promptly when funding becomes available, and document the reason for any reimbursement request submitted outside the required timeframe. The department will also consult with the United States Property and Fiscal Office to identify whether alternative processes are available to allow reimbursement requests to be submitted without waiting for completion of a funding modification. Management will review outstanding reimbursement requests and documented exceptions regularly to ensure timely follow‑up. Responsible Party - Janae Brower, Chief Financial Officer, Montana Department of Military Affairs Target Implementation Date - 11/30/2026
Noncompliant Payroll Allocation Controls - O&M - DMA - The Montana Department of Military Affairs concurs with the finding and will strengthen controls to ensure payroll coding and allocations are updated timely. The department will create a process for all changes to task profile IDs to ensure accu...
Noncompliant Payroll Allocation Controls - O&M - DMA - The Montana Department of Military Affairs concurs with the finding and will strengthen controls to ensure payroll coding and allocations are updated timely. The department will create a process for all changes to task profile IDs to ensure accurate funding-split percentages and coding are in place before payroll processing. The department will perform reconciliations of payroll charges, document and promptly correct errors, and verify that corrections address all related coding elements and split percentages. Responsible Party - Janae Brower, Chief Financial Officer, Montana Department of Military Affairs Target Implementation Date - 11/30/2026
Inadequate 1505-029 Reporting Controls - HAF - Commerce - The Montana Department of Commerce updated the Homeowners Assistance Fund reporting procedure to strengthen internal controls by requiring supervisory verification of all quarterly and annual reports. These updates ensure all reports are comp...
Inadequate 1505-029 Reporting Controls - HAF - Commerce - The Montana Department of Commerce updated the Homeowners Assistance Fund reporting procedure to strengthen internal controls by requiring supervisory verification of all quarterly and annual reports. These updates ensure all reports are complete, accurate, and fully documented prior to submission. Responsible Party - Ingrid Mallo, Chief Financial Officer, Montana Department of Commerce Target Implementation Date - 7/1/2026
Noncompliant Certified Payrolls - HPC - MDT - The Montana Department of Transportation partially concurs that there are late certified payrolls. To verify whether a certified payroll is warranted, contractor records—such as payroll cycle dates and corresponding Daily Work Report entries—must be revi...
Noncompliant Certified Payrolls - HPC - MDT - The Montana Department of Transportation partially concurs that there are late certified payrolls. To verify whether a certified payroll is warranted, contractor records—such as payroll cycle dates and corresponding Daily Work Report entries—must be reviewed. Comparing datasets can help identify items needing further examination, but an analytical review alone cannot determine whether a certified payroll is late. Each contractor follows its own payroll cycle, and federal requirements must be applied to the circumstances of each contractor. This concern was raised multiple times, and while some issues were addressed, the additional review needed to confirm the accuracy of the identified noncompliance remains unresolved. In communication with the department, the auditor stated that “we will never arrive at an exact number we can all agree on due to gaps in Daily Work Report data and an uncertain measurement metric.” This acknowledgment calls into question the reliability of the projected late payment rate and indicates the need for additional procedures to validate the assumptions and methodology used in the analytical review. The department manually recalculated the contractor identified as having the highest number of late submissions. This review resulted in a rate 47.53 percent lower than the auditor’s calculation; however, the auditor did not revise the analysis. This recalculation reflects only one contractor, and reviewing the remaining contractors would likely further reduce the overall percentage. The department will continue strengthening internal controls on overdue payrolls. The original payroll withholding specification lacked a standard calculation method, which led to inconsistent practices among project managers. The Contract Administration Section developed a standardized deduction table based on the awarded contract amount to ensure consistent application statewide. Specification language was also revised for clarity. Additionally, the Contract Administration Section developed a monthly overdue payroll report that will be sent to project managers around the fifteenth of each month. This report will help identify and address overdue payrolls before the monthly estimate cycle ends. The department will continue monitoring overdue payrolls, ensuring proper withholding on estimates, and providing guidance and additional training to project staff. A guide has also been provided to help staff document communication with contractors and apply correct withholding. Responsible Party - Kimberly Doherty, Accounting Systems Supervisor, Montana Department of Transportation Dustin Rouse, Chief Engineer, Montana Department of Transportation Target Implementation Date - 12/31/2026
Inadequate User Access Reviews - HPC - MDT - The Montana Department of Transportation has implemented a security review for AASTHOWare to ensure compliance in 2026. Responsible Party - Kimberly Doherty, Accounting Systems Supervisor, Montana Department of Transportation Dustin Rouse, Chief Engineer,...
Inadequate User Access Reviews - HPC - MDT - The Montana Department of Transportation has implemented a security review for AASTHOWare to ensure compliance in 2026. Responsible Party - Kimberly Doherty, Accounting Systems Supervisor, Montana Department of Transportation Dustin Rouse, Chief Engineer, Montana Department of Transportation Target Implementation Date - 12/31/2026
Inadequate Controls Over Indirect Cost Rate Proposals - HPC - MDT - The Montana Department of Transportation has updated its procedures and checklist to ensure required submittals are received on time. These updates were in effect for the 2026 rate. Responsible Party - Kimberly Doherty, Accounting S...
Inadequate Controls Over Indirect Cost Rate Proposals - HPC - MDT - The Montana Department of Transportation has updated its procedures and checklist to ensure required submittals are received on time. These updates were in effect for the 2026 rate. Responsible Party - Kimberly Doherty, Accounting Systems Supervisor, Montana Department of Transportation Dustin Rouse, Chief Engineer, Montana Department of Transportation Target Implementation Date - 12/31/2026
Noncompliant FFATA Reports - ELC- DPHHS - The Montana Department of Public Health and Human Services partially concurs. The department agrees that internal control deficiencies existed in its subaward reporting processes under the Federal Funding Accountability and Transparency Act (FFATA) during fi...
Noncompliant FFATA Reports - ELC- DPHHS - The Montana Department of Public Health and Human Services partially concurs. The department agrees that internal control deficiencies existed in its subaward reporting processes under the Federal Funding Accountability and Transparency Act (FFATA) during fiscal years 2024 and 2025, and that instances of noncompliance occurred. The department does not concur with the quantified extent of the exceptions, including report counts and reporting figures. The department has been unable to replicate the amounts noted and did not receive sufficient detail, as outlined in 2 CFR 200.516(b), to fully understand the specific errors identified. In response to a prior audit recommendation, the department implemented corrective actions to strengthen its internal controls and review processes. These actions included enhanced oversight and the identification and correction of duplicate and inaccurate records. Many of these duplication issues originated from data quality challenges within the former federal reporting system. Responsible Party - Brenda Crawford, Internal Control and Compliance Officer, Montana Department of Public Health and Human Services Target Implementation Date - 7/1/2025
Noncompliant Annual Reporting Controls - ESSER - OPI - The Montana Office of Public Instruction concurs with the finding. The grant is closed, and the temporary grant-funded staff are no longer with the agency. Moving forward, new grant managers will receive clearer direction on the agency’s interna...
Noncompliant Annual Reporting Controls - ESSER - OPI - The Montana Office of Public Instruction concurs with the finding. The grant is closed, and the temporary grant-funded staff are no longer with the agency. Moving forward, new grant managers will receive clearer direction on the agency’s internal controls. Responsible Party - April Grady, Chief Financial Officer, Montana Office of Public Instruction Target Implementation Date - 12/31/2026
Noncompliant FFATA Reports - ESSER - OPI - The Montana Office of Public Instruction concurs with this finding. This grant is closed. For all future reporting under the Federal Funding Accountability and Transparency Act, the Office will update internal guidance to align with federal regulations and ...
Noncompliant FFATA Reports - ESSER - OPI - The Montana Office of Public Instruction concurs with this finding. This grant is closed. For all future reporting under the Federal Funding Accountability and Transparency Act, the Office will update internal guidance to align with federal regulations and federal oversight requirements. The Office will ensure that required documentation is maintained and that reconciliations verify values in USAspending and SAM. Responsible Party - April Grady, Chief Financial Officer, Montana Office of Public Instruction Target Implementation Date - 12/31/2026
Deficient FFATA Controls - Disaster Grants - DMA - The Montana Department of Military Affairs, Disaster and Emergency Services Division concurs with the finding. The division has implemented changes in response to prior audit finding 2023-073. When federal reporting systems were updated in March 202...
Deficient FFATA Controls - Disaster Grants - DMA - The Montana Department of Military Affairs, Disaster and Emergency Services Division concurs with the finding. The division has implemented changes in response to prior audit finding 2023-073. When federal reporting systems were updated in March 2025, the division adjusted its internal processes to align with the System for Award Management (SAM) and trained additional staff to reduce late and inaccurate reporting. Corrective actions have been implemented, and the required appendix is currently under review for approval. Responsible Party - Janae Brower, Chief Financial Officer, Montana Department of Military Affairs Target Implementation Date - 10/31/2026
Untimely Eligibility Determinations - CHIP - Medicaid - DPHHS - The Montana Department of Public Health and Human Services prioritized safeguarding continuous coverage for eligible Montanans during the unwinding period while working to minimize delays for new applicants. No questioned costs were ide...
Untimely Eligibility Determinations - CHIP - Medicaid - DPHHS - The Montana Department of Public Health and Human Services prioritized safeguarding continuous coverage for eligible Montanans during the unwinding period while working to minimize delays for new applicants. No questioned costs were identified in connection with this finding, underscoring that the issue was related to processing timeliness rather than improper payments. To ensure timely eligibility determinations going forward, the department implemented case-based processing in May 2026 that prioritizes cases based on aging and processing timelines, along with business processes to communicate with clients regarding necessary documentation for eligibility determinations. Responsible Party - Brenda Crawford, Internal Control and Compliance Officer, Montana Department of Public Health and Human Services Target Implementation Date - 5/15/2026
Inadequate Internal Controls Over Certified Payrolls - AIP - DOA - The Montana Department of Administration partially concurs with the finding. While the department oversees construction activities, it has consistently informed agencies that they retain responsibility for grant administration and fe...
Inadequate Internal Controls Over Certified Payrolls - AIP - DOA - The Montana Department of Administration partially concurs with the finding. While the department oversees construction activities, it has consistently informed agencies that they retain responsibility for grant administration and federal reporting for grants awarded directly to them. Each agency is responsible for notifying the Department of all applicable grant requirements, guidance, and restrictions. In this instance, the department understood that the Montana Department of Transportation approved invoices reflecting the federal and non-federal funding split only after receiving the contractor’s Statement of Compliance for all pay periods included in the invoicing period. Due to limited time to respond to the audit finding, the department was unable to confirm with its contracted engineering firm the specific dates the certified payrolls were received and verified. To strengthen future compliance, the department will include language in project memoranda of understanding assigning responsibility for federal wage-rate compliance and record keeping to the agency that received the federal grant. The department will also implement internal controls requiring agencies to confirm that certified payroll requirements have been verified before payments are processed. Responsible Party - Russell Katherman, Administrator of Architecture and Engineering , Montana Long Range Building, Montana Department of Administration Target Implementation Date - 12/31/2026
Inaccurate Federal Reporting - AIP - MDT - The Montana Department of Transportation will update its procedures and add a secondary review process for the 2026 report submission. The procedures will also be revised to clarify the analysis and reporting of payments and revenues to ensure compliance. R...
Inaccurate Federal Reporting - AIP - MDT - The Montana Department of Transportation will update its procedures and add a secondary review process for the 2026 report submission. The procedures will also be revised to clarify the analysis and reporting of payments and revenues to ensure compliance. Responsible Party - Kimberly Doherty, Accounting Systems Supervisor, Montana Department of Transportation Target Implementation Date - 12/31/2026
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