Corrective Action Plans

Finding 1172671 (2024-029)

Material Weakness 2024

Maryland Water Infrastructure Financing Agency

MD

Subrecipient Monitoring Material Weakness Reporting § 200.303

Department of Health and Human Services (DHHS) Maryland Department of Health respectfully submits the following corrective action plan for the year ended June 30, 2024. Audit period: July 1, 2023 – June 30, 2024 The findings from the schedule of findings and questioned costs are discussed below. The...

Department of Health and Human Services (DHHS) Maryland Department of Health respectfully submits the following corrective action plan for the year ended June 30, 2024. Audit period: July 1, 2023 – June 30, 2024 The findings from the schedule of findings and questioned costs are discussed below. The finding is numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS Maryland Department of Health

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Finding 1172669 (2024-028)

Material Weakness 2024

Maryland Water Infrastructure Financing Agency

MD

Subrecipient Monitoring Material Weakness Reporting § 200.303

U.S. Department of Health and Human Services (DHHS) Maryland Department of Health respectfully submits the following corrective action plan for the year ended June 30, 2024. Audit period: July 1, 2023 – June 30, 2024 The findings from the schedule of findings and questioned costs are discussed below...

U.S. Department of Health and Human Services (DHHS) Maryland Department of Health respectfully submits the following corrective action plan for the year ended June 30, 2024. Audit period: July 1, 2023 – June 30, 2024 The findings from the schedule of findings and questioned costs are discussed below. The finding is numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS Maryland Department of Health pioid-STR – Assistance Listing No. 93.788 Recommendation: We recommend the Department review and enhance internal controls and procedures to ensure that all required subawards are reported timely and accurately to FSRS no later than the end of the month following the month of issuance. Explanation of disagreement with audit finding:

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Finding 1172667 (2024-027)

Material Weakness 2024

Maryland Water Infrastructure Financing Agency

MD

Special Tests & Provisions Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

U.S. Department of Health and Human Services (DHHS) Maryland Department of Health respectfully submits the following corrective action plan for the year ended June 30, 2024. Audit period: July 1, 2023 – June 30, 2024 The findings from the schedule of findings and questioned costs are discussed below...

U.S. Department of Health and Human Services (DHHS) Maryland Department of Health respectfully submits the following corrective action plan for the year ended June 30, 2024. Audit period: July 1, 2023 – June 30, 2024 The findings from the schedule of findings and questioned costs are discussed below. The finding is numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS Maryland Department of Health 20XX-XXX Medicaid Cluster – Assistance Listing No. 93.775, 93.777, 93.778 Children Health Insurance Program – Assistance Listing No. 93.767 Recommendation: We recommend that the Department enhance its procedures and internal controls to ensure that overpayments are reported to CMS either in the quarter in which the recovery is made or in the quarter in which the one-year period following discovery ends, whichever is earlier. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Name(s) of the contact person(s) responsible for corrective action: Planned completion date for corrective action plan 20XX-XXX Medicaid Cluster – Assistance Listing No. 93.775, 93.777, 93.778 Recommendation: We recommend that the Department enhance its procedures and internal controls to ensure that RAC desk and field audits are performed timely and that overpayments are recouped. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding:. #1: The Department will direct the RAC vendor to begin all new audits using the current universe of available claims from MMIS II including claims from calendar years 2022-2024. This will ensure timely performance of audits and that overpayments are recouped. The Department will direct the current vendor to request the parameters for the claims from the RAC Contract Monitor and support in the transfer of these claims, so that the RAC vendor may begin including them in new audits that begin after April 1, 2025 through the end of their contract. #2: In addition, the RAC Contract Monitor will work with the Office of Contract Management and Procurement (OCMP) to determine if a contract modification is also needed/recommended to ensure timeliness of claims reviewed in RAC audits going forward, and if so, execute the needed contract modification. #3: Finally, the requirement to audit the most recent available claims will be included as language in the new Request for Proposals (RFP) for a RAC vendor that is expected to be issued in 2025. This RFP will be a competitive procurement to select the next contracted RAC vendor, and as such, will ensure this requirement for timely auditing of providers is maintained going forward regardless of which vendor is selected. Name(s) of the contact person(s) responsible for corrective action: Sandy Kick, Director, OMBM and Lynn Price, RAC Contract Monitor Planned completion date for corrective action plan: #1 & #2: June 30, 2025; #3: December 30, 2025 (expected to issue RFP). If the U.S DHHS has questions regarding this plan, please call Sandy Kick at 410-767-5248 or Lynn Price at (667) 208-0776.

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Finding 1172662 (2024-026)

Material Weakness 2024

Maryland Water Infrastructure Financing Agency

MD

Reporting Special Tests & Provisions Significant Deficiency § 200.303

Medicaid Cluster – Assistance Listing No. 93.775, 93.777, 93.778 Children Health Insurance Program – Assistance Listing No. 93.767 Recommendation: We recommend that the Department enhance its procedures and internal controls to ensure that overpayments are reported to CMS either in the quarter in wh...

Medicaid Cluster – Assistance Listing No. 93.775, 93.777, 93.778 Children Health Insurance Program – Assistance Listing No. 93.767 Recommendation: We recommend that the Department enhance its procedures and internal controls to ensure that overpayments are reported to CMS either in the quarter in which the recovery is made or in the quarter in which the one-year period following discovery ends, whichever is earlier. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management has engaged a third-party consultant to create procedures to ensure that a reconciliation is performed quarterly prior to submission of the CMS-64. A current draft of the procedure is under review. Name(s) of the contact person(s) responsible for corrective action: Jennifer Maher, CFO Healthcare Financing and Medicaid Program and Angeline Palank, Deputy

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Finding 1172656 (2024-025)

Material Weakness 2024

Maryland Water Infrastructure Financing Agency

MD

Allowable Costs / Cost Principles Subrecipient Monitoring Material Weakness § 200.303 § 200.308 § 200.309 § 200.403

U.S. Department of Health and Human Services Department of Human Services respectfully submits the following corrective action plan for the year ended June 30, 2024. Audit period: July 1, 2023 - June 30, 2024 The findings from the schedule of findings and questioned costs are discussed below. The fi...

U.S. Department of Health and Human Services Department of Human Services respectfully submits the following corrective action plan for the year ended June 30, 2024. Audit period: July 1, 2023 - June 30, 2024 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 PROGRAMS AUDITS Department of Human Services Low-Income Home Energy Assistance Program – Assistance Listing No. 93.568 Recommendation: The Department should review and enhance its procedures and internal controls to ensure that it charges expenditures to the program that are incurred within an award’s allowable period of performance. Explanation of disagreement with audit finding: No disagreement. Action taken in response to finding: The Department has made changes in the Office of Budget and Finance Leadership team and continues to do so at every level. The Department will review and enhance its procedures and internal controls to ensure that it charges expenditures to the program that are incurred within an award’s allowable period of performance. Currently, expenditures are recorded in the State’s Financial Management Information System (FMIS) with program cost accounting codes used to identify the funding source(s) for each activity. The system-generated report summarizes the information and includes the effective date of the activity. In turn, this same report is used to run the cost allocation to properly charge the exact costs to the funding source. Currently information is manually inputted into multiple spreadsheets to prepare the federal reports resulting in the possibility for errors. This significantly impedes the accuracy of the data being reported to federal grants and the provision of supporting documentation. As such, the Department will partner with external consultants to develop a better and more seamless recording structure for grant expenditures to the general ledger. This structure will require quarterly review by the Deputy Cost Allocation Revenue Management Director (CARM), the Cost Allocation Revenue Management Director, and the Deputy Chief Financial Officer. The Department will create a database and document repository to track the submission and reconciliation for federal grant reporting. The document repository will include the FMIS generated report and the cost allocation results table. Upon submission to the federal grant

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Finding 1172654 (2024-023)

Material Weakness 2024

Maryland Water Infrastructure Financing Agency

MD

Allowable Costs / Cost Principles Subrecipient Monitoring Material Weakness § 200.303 § 200.308 § 200.309 § 200.403

U.S. Department of Education (USDE) Maryland State Department of Education respectfully submits the following corrective action plan for the year ended June 30, 2024. Audit period: July 1, 2023-June 30, 2024 The findings from the schedule of findings and questioned costs are discussed below. Finding...

U.S. Department of Education (USDE) Maryland State Department of Education respectfully submits the following corrective action plan for the year ended June 30, 2024. Audit period: July 1, 2023-June 30, 2024 The findings from the schedule of findings and questioned costs are discussed below. Finding is numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS Maryland State Department of Education 2024-023 Special Education Cluster– Assistance Listing No. 84.027, 84.173 Recommendation: The Department should review and enhance its procedures and internal controls to ensure that it charges expenditures to the program that are incurred within an award’s allowable period of performance. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: MSDE will review and enhance its Standard Operating Procedures (SOPs) and internal controls to ensure that it charges expenditures (including accounts payable and payroll) to Federal programs that are incurred within an award’s allowable period of performance. Name(s) of the contact person(s) responsible for corrective action: Neeta Gandhi Executive Director Office of Program Fiscal Operations and Local Strategic Finance Jenna Meinl Director Office of Procurement and Contract Management Planned completion date for corrective action plan: June 30, 2025 If the USDE has questions regarding this plan, please call Patricia Ramallosa at 410- 767-0103. Page 2 Approval of Response to the CLA Findings and Recommendations: Document Version Approval Date Approved by Signature 1.0 Mar 29, 2025 Neeta Gandhi, Executive Director-Office of Program Fiscal Operations & Local Strategic Finance Mar 29, 2025 Jenna Meinl, Director-Office of Procurement and Contract Management Mar 29, 2025 Donna Gunning, Assistant Superintendent of Financial Policy, Planning, Operations & Strategy Mar 29, 2025 Shawn Rushing, Assistant Superintendent of Administration Mar 29, 2025 Krishnanda Tallur, Deputy Superintendent of Finance and Operations

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Finding 1172649 (2024-021)

Material Weakness 2024

Maryland Water Infrastructure Financing Agency

MD

Matching / Level of Effort / Earmarking § 200.300 § 200.303 § 200.306 § 200.309 § 200.403

Higher Education Institutional Aid – Assistance Listing No. 84.031 Condition: The Institution did not adjust the employee’s payroll costs to reflect the reported effort. We noted that the actual time and effort charged to the grant did not agree to the time and effort report. Recommendation: We reco...

Higher Education Institutional Aid – Assistance Listing No. 84.031 Condition: The Institution did not adjust the employee’s payroll costs to reflect the reported effort. We noted that the actual time and effort charged to the grant did not agree to the time and effort report. Recommendation: We recommend that the Institution strengthen its internal controls to ensure expenditures are reviewed and adjusted for, if necessary, in a timely manner. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: As a corrective action, Coppin State will complete the implementation of the following: 1. Award PI will provide training regarding proper submission of Time and Effort Reports. 2. Award PI will review distribution of time and percentage. 3. Award PI will review compensation and fringe benefits. 4. Award PI will approve Time and Effort Reports and route to the Payroll Office. 5. Award PI with the support of the Controller will obtain the appropriate role in Workday that allows for the review and confirmation of approved payroll allocations and adjustments.

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Finding 1172648 (2024-020)

Material Weakness 2024

Maryland Water Infrastructure Financing Agency

MD

Matching / Level of Effort / Earmarking § 200.300 § 200.303 § 200.306 § 200.309 § 200.403

Higher Education Institutional Aid – Assistance Listing No. 84.031 Condition: Time and Effort documentation were not being documented and reviewed timely. Recommendation: We recommend that the Institution strengthen its internal controls to ensure that Time and Effort are documented, expenditures ar...

Higher Education Institutional Aid – Assistance Listing No. 84.031 Condition: Time and Effort documentation were not being documented and reviewed timely. Recommendation: We recommend that the Institution strengthen its internal controls to ensure that Time and Effort are documented, expenditures are reviewed and adjusted for, if necessary, in a timely manner. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: In June 2024, we successfully implemented a new ERP system designed to automate the documentation of Time and Effort. This system streamlines the process by capturing and organizing data more efficiently, reducing manual effort and enhancing accuracy. As part of the implementation, we have established a process for regular reviews and adjustments of expenditures, ensuring ongoing compliance with regulatory requirements and maintaining the integrity of financial records. We are providing comprehensive training for relevant staff members, focusing on how to utilize the new system effectively. This training will ensure that documentation is completed in a timely, accurate, and consistent manner, minimizing the risk of errors and improving overall operational efficiency. Moving forward, we will continue to monitor the system's performance and provide ongoing support to ensure its success. Name(s) of the contact person(s) responsible for corrective action: Miliani Sinclair Planned completion date for corrective action plan: April 2025

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Finding 1172647 (2024-019)

Material Weakness 2024

Maryland Water Infrastructure Financing Agency

MD

Special Tests & Provisions Material Weakness Reporting § 200.303

U.S Department of Education (USDE) Maryland State Department of Education respectfully submits the following corrective action plan for the year ended June 30, 2024. Audit period: July 1, 2023-June 30, 2024 The findings from the schedule of findings and questioned costs are discussed below. Findings...

U.S Department of Education (USDE) Maryland State Department of Education respectfully submits the following corrective action plan for the year ended June 30, 2024. Audit period: July 1, 2023-June 30, 2024 The findings from the schedule of findings and questioned costs are discussed below. Findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS Maryland State Department of Education 2024-031 Title I- Part A– Assistance Listing No. 84.010 Recommendation: We recommend that the Department review the federal requirements for determining a subrecipient vs a contractor. Their procedures should be updated to ensure that contractual relationship with the vendors are documented in accordance with the federal contracting requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: MSDE will review federal requirements for determining a subrecipient vs a contractor. The current MSDE procedures will be reviewed for accuracy and modification. Name(s) of the contact person(s) responsible for corrective action: Mary Gable Assistant State Superintendent Division of Student Support and Federal Programs Office (410) 767-0472 Email : Mary.gable@maryland.gov

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Finding 1172646 (2024-018)

Material Weakness 2024

Maryland Water Infrastructure Financing Agency

MD

Subrecipient Monitoring Material Weakness Reporting § 200.303

U.S. Department of Education (USDE) Maryland State Department of Education respectfully submits the following corrective action plan for the year ended June 30, 2024. Audit period: July 1, 2023-June 30, 2024 The findings from the schedule of findings and questioned costs are discussed below. Finding...

U.S. Department of Education (USDE) Maryland State Department of Education respectfully submits the following corrective action plan for the year ended June 30, 2024. Audit period: July 1, 2023-June 30, 2024 The findings from the schedule of findings and questioned costs are discussed below. Finding is numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS Maryland State Department of Education 2024-018 COVID-19 – Education Stabilization Fund – Assistance Listing No. 84.425 C, D, R, U, V W Recommendation: We recommend the Department review and enhance internal controls and procedures to ensure that all required subawards are reported timely and accurately to FSRS no later than the end of the month following the month of issuance. Explanation of disagreement with audit finding: MSDE disagrees with the finding. MSDE provided the requested reports on January 8, 2025. The audit findings were shared with the Department with aggressive turn-around times on March 27, 2025, as the Department staff were in the middle of several critical projects. This did not give an opportunity to the Department to do an in-depth review once again and provide the documentation requested by the auditors. Action taken in response to finding: Regardless of our disagreement, MSDE will review and enhance its Standard Operating Procedures (SOPs) and internal controls to ensure that all required subawards are reported timely and accurately to FSRS no later than the end of the month following the month of issuance. Name(s) of the contact person(s) responsible for corrective action: Donna Gunning Assistant Superintendent Division of Financial Policy, Planning, Operations & Strategy Krishnanda Tallur Deputy Superintendent Office of Finance and Operations Planned completion date for corrective action plan: June 30, 2025 Page 2 If the USDE has questions regarding this plan, please call Patricia Ramallosa at 410- 767-0103. Approval of Response to the CLA Findings and Recommendations: Document Version Approval Date Approved by Signature Mar 31, 2025 Donna Gunning, Assistant Superintendent of Financial Policy, Planning, Operations & Strategy Mar 31, 2025 Krishnanda Tallur, Deputy Superintendent of Finance and Operations

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Finding 1172639 (2024-017)

Material Weakness 2024

Maryland Water Infrastructure Financing Agency

MD

Subrecipient Monitoring Material Weakness Reporting § 200.303

COVID-19-Coronavirus State and Local Fiscal Recovery Funds (CSLFRF)– Assistance Listing No. 21.027 Recommendation: We recommend the Department implement procedures and internal controls to ensure that it complies with program requirements, that it maintains documentation, and that documentation is r...

COVID-19-Coronavirus State and Local Fiscal Recovery Funds (CSLFRF)– Assistance Listing No. 21.027 Recommendation: We recommend the Department implement procedures and internal controls to ensure that it complies with program requirements, that it maintains documentation, and that documentation is readily available for audit. Explanation of disagreement with audit finding: The items in question are internal journal entries used to reclassify prior year expenditures to the correct accounts. The expenditures tested during the audit period were reviewed and found to be in compliance with program requirements. Journal entries are prepared by one person then reviewed and signed by the chief of accounting for accuracy. The journal entries are then keyed into the accounting system. In the future, MDL will ensure that all journal entries are provided in a timely manner. Action taken in response to finding: Internal controls exist to provide documentation. To ensure compliance, DOL agrees to provide documentation on time for testing. Name(s) of the contact person(s) responsible for corrective action: Sherry Baynes Planned completion date for corrective action plan: Documentation was provided after the deadline for testing,

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Finding 1172621 (2024-014)

Material Weakness 2024

Maryland Water Infrastructure Financing Agency

MD

Eligibility Reporting Significant Deficiency § 200.303

U.S. Department of the Treasury Department of Housing and Community Development respectfully submits the following corrective action plan for the year ended June 30, 2024. Audit period: July 1, 2023-June 30, 2024 The findings from the schedule of findings and questioned costs are discussed below. Th...

U.S. Department of the Treasury Department of Housing and Community Development respectfully submits the following corrective action plan for the year ended June 30, 2024. Audit period: July 1, 2023-June 30, 2024 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 PROGRAMS AUDITS Department of Housing and Community Development 2024-014 COVID-19 – Emergency Rental Assistance Program – Assistance Listing No. 21.023 Recommendation: We recommend that the Department review and enhance supervisor review and approval to ensure that program requirements are consistently performed. Documentation to support compliance with the requirements should be maintained and readily available for review. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The subrecipient who administered the assistance for three (3) of the four (4) affected records has fully expended ERA 2 funds. DHCD will review the subrecipient’s internal approvals process and tenant notification process to determine where improvements can be made and issue recommended recordkeeping changes for the subrecipient to implement for future federal subawards. DHCD will review and make necessary changes to program policy guides as necessary to strengthen case file recordkeeping requirements and ensure that case file reviews for direct financial assistance programs include a review of notifications to clients. In prior desk monitoring and file audits, the relevant subrecipient files always included a notification of assistance to the tenant. Name(s) of the contact person(s) responsible for corrective action: Danielle Meister Planned completion date for corrective action plan: April 30, 2025 2024-015 COVID-19 – Homeowner Assistance Fund – Assistance Listing No. 21.026 Recommendation: The Department should reevaluate current process, implement proper controls, and perform additional training over time and effort reporting. The Department should not seek federal reimbursement unless they can substantiate that the time and effort was dedicated to the federal program. Documentation should be readily available for audit. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Monthly reporting to Senior Management of any exceptions to the federal timesheet process will be required to ensure that all federal timesheets are completed and received in a timely manner. Name(s) of the contact person(s) responsible for corrective action: Wade Simmons Planned completion date for corrective action plan: April 30, 2025 If the U.S. Department of the Treasury has questions regarding this plan, please call Crystal Quinzani at (301) 429-7840.

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Finding 1172620 (2024-013)

Material Weakness 2024

Maryland Water Infrastructure Financing Agency

MD

Subrecipient Monitoring Material Weakness Reporting § 200.303

Compliance Requirement: Reporting – Federal Funding Accountability and Transparency Act (FFATA) Type of Finding: Material Weakness in Internal Control Over Compliance. To Whom It May Concern: On behalf of our Team, let me thank you for the support CLA team has provided in the just ended single audit...

Compliance Requirement: Reporting – Federal Funding Accountability and Transparency Act (FFATA) Type of Finding: Material Weakness in Internal Control Over Compliance. To Whom It May Concern: On behalf of our Team, let me thank you for the support CLA team has provided in the just ended single audit. Please see our response below. Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance DWDAL Response: The Maryland Department of Labor’s Division of Workforce Development and Adult Learning (DWDAL) accepts the FFATA finding. DWDAL was not aware of the aspect of the FFATA requirement that stipulated internal control of a non-Federal entity as per 2 CFR section 200.303(a), and therefore, had not established a protocol. Action taken in response to finding: Develop a policy relating to the FFATA requirements and implement within DWDAL’s Financial Management Handbook and circulated to all Local Workforce Development Areas (LWDAs). Name(s) of the contact person(s) responsible for corrective action: Dorothee Schlotterbeck Planned completion date for corrective action plan: June 28, 2025

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Finding 1172617 (2024-012)

Material Weakness 2024

Maryland Water Infrastructure Financing Agency

MD

Matching / Level of Effort / Earmarking Special Tests & Provisions Eligibility § 200.303

Department of Labor (DOL)Financial Statement Preparationinancial Statement Preparation. Unemployment Insurance – Assistance Listing No. 17.225 Recommendation: We recommend the Department implement procedures and internal controls to ensure that it complies with program requirements, that it maintain...

Department of Labor (DOL)Financial Statement Preparationinancial Statement Preparation. Unemployment Insurance – Assistance Listing No. 17.225 Recommendation: We recommend the Department implement procedures and internal controls to ensure that it complies with program requirements, that it maintains documentation, and that documentation is readily available for audit. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Recommendation: We recommend the Fund establish procedures to ensure that financial reporting is performed in a timely manner and provide accurate and relevant information. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The team that was assembled to work through the audit has also been enlisted to redesign the process and build new tools to create UI Trust Fund financial statements every month. While this is still in development, we plan to have it functioning accurately by May of 2025. Name(s) of the contact person(s) responsible for corrective action: John Fahnbutu. Planned completion date for corrective action plan: 5/30/2025 Recommendation: We recommend the Fund establish procedures to ensure that financial reporting is performed in a timely manner and provide accurate and relevant information. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The team that was assembled to work through the audit has also been enlisted to redesign the process and build new tools to create UI Trust Fund financial statements every month. While this is still in development, we plan to have it functioning accurately by May of 2025. Name(s) of the contact person(s) responsible for corrective action: John Fahnbutu. Planned completion date for corrective action plan: 5/30/2025 Maryland Department of Labor- Unemployment Insurance Trust Fund (the Fund) respectfully submits the following corrective action plan for the year ended June 30, 2024. Audit period: July 1, 2023-June 30, 2024 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—FINANCIAL STATEMENT AUDIT MATERIAL WEAKNESS

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Finding 1172615 (2024-011)

Material Weakness 2024

Maryland Water Infrastructure Financing Agency

MD

Allowable Costs / Cost Principles Subrecipient Monitoring Period of Performance § 200.303 § 200.308 § 200.309 § 200.403

1. The Maryland Military Department respectfully submits the following corrective action plan for the year ended June 30, 2024.Projects – Assistance Listing No. 12.401 (1) Recommendation: The Department should review and enhance its procedures and internal controls to ensure that it charges expendit...

1. The Maryland Military Department respectfully submits the following corrective action plan for the year ended June 30, 2024.Projects – Assistance Listing No. 12.401 (1) Recommendation: The Department should review and enhance its procedures and internal controls to ensure that it charges expenditures to the program that are incurred within an award's allowable period of performance. (2) Explanation of disagreement with audit finding: There is no disagreement with the audit finding. (3) Action taken in response to finding: The Department will carefully exam and allocate expenses to the fiscal year in which they are incurred, ensuring proper period assignment when expenses span multiple fiscal years. This will confirm accurate costs charged to the programs. 2. Audit period: July 1, 2023-June 30, 2024 3. The findings from the schedule of findings and questioned costs are discussed below. The finding is numbered consistently with the numbers assigned in the schedule. 4. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS: a. Finding 2024-011: National Guard Military Operations and Maintenance (O&M

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Finding 1172614 (2024-010)

Material Weakness 2024

Maryland Water Infrastructure Financing Agency

MD

Reporting Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

STATE OF MARYLANDCOVID-19 – Pandemic EBT – Assistance Listing No. 10.542 Recommendation: We recommend the Department enhance its procedures and internal controls to ensure that it submits programmatic reports on a timely basis. Explanation of disagreement with audit finding: No disagreement. Action ...

STATE OF MARYLANDCOVID-19 – Pandemic EBT – Assistance Listing No. 10.542 Recommendation: We recommend the Department enhance its procedures and internal controls to ensure that it submits programmatic reports on a timely basis. Explanation of disagreement with audit finding: No disagreement. Action taken in response to finding: Google Calendar (the Department’s internal calendar) reminders will be set up to generate reminders of the due dates for the reports, as well as, an internal tracker will be created to monitor the due dates and the submission of the reports. These tools will be used by Management to ensure the federal reports are submitted timely according to the United States Department of Agriculture Food and Nutrition Service (FNS) program integrity calendar. Name(s) of the contact person(s) responsible for corrective action: Jessica Smith, Acting Chief Financial Officer Planned completion date for corrective action plan: June 2025 CORRECTIVE ACTION PLAN YEAR ENDED JUNE 30, 2024 U.S. Department of Agriculture Department of Human Services respectfully submits the following corrective action plan for the year ended June 30, 2024. Audit period: July 1, 2023 - June 30, 2024 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 PROGRAMS AUDITS Department of Human Service

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Finding 1172354 (2024-002)

Material Weakness 2024

1890 Universities Foundation

DC

Allowable Costs / Cost Principles Period of Performance Significant Deficiency § 200.430

Finding 2024-002: Significant Deficiency Activities Allowed or Unallowed and Allowable Cost/Cost Principle (Payroll) Responsible Official’s Response and Corrective Action Plan We concur with the finding related to deficiencies in our time tracking Process. Starting in the fourth quarter of fiscal ye...

Finding 2024-002: Significant Deficiency Activities Allowed or Unallowed and Allowable Cost/Cost Principle (Payroll) Responsible Official’s Response and Corrective Action Plan We concur with the finding related to deficiencies in our time tracking Process. Starting in the fourth quarter of fiscal year 2025, a time tracking system using Paychex Time & Attendance was implemented. This system is designed to accurately capture, and record employees’ hours worked by project/grant. Comprehensive training sessions have been conducted for all affected employees to ensure they are proficient in using the new time tracking system. Supervisors have received additional training on monitoring and verifying time entries. Planned Implementation Date of Corrective Action Plan October 2025 Person Responsible for Corrective Action Plan Natésha Johnson, Director of Finance and Administration Dr. Felecia Nave, President and Chief Executive Officer

View Audit 385388

Finding 1172051 (2024-001)

Material Weakness 2024

City of Hughes, AR Federal Awards

AR

Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303

Recommendation:We recommend that management develop, implement, and maintain written policies and procedures documenting its system of internal control over federal programs to ensure compliance with Uniform Guidance and applicable federal requirements. Views of Responsible Officials and Planned Cor...

Recommendation:We recommend that management develop, implement, and maintain written policies and procedures documenting its system of internal control over federal programs to ensure compliance with Uniform Guidance and applicable federal requirements. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding and plans to develop and implement written internal control policies and procedures over federal programs. Management anticipates completion by June 30, 2026.

View Audit 385167

Finding 1171884 (2024-003)

Material Weakness 2024

Heart of Georgia Regional Airport Authority

GA

Procurement, Suspension & Debarment Subrecipient Monitoring Matching / Level of Effort / Earmarking

THE BOARD WILL DOCUMENT THE PROCUREMENT PROCEDURES FOR FEDERAL AWARDS AND SUBAWARDS.

View Audit 384866

Finding 1171693 (2024-101)

Material Weakness 2024

City of Parker, Florida

FL

Special Tests & Provisions Subrecipient Monitoring Cash Management § 200.303

City of Parker Management’s Corrective Action Plan For the Fiscal Year Ended September 30, 2024 Financial Statement Finding Number: 2024-101: Reimbursement Requests were Not Formally Approved by the City Prior to Submission Planned Corrective Action: The City will update its procedures to require do...

City of Parker Management’s Corrective Action Plan For the Fiscal Year Ended September 30, 2024 Financial Statement Finding Number: 2024-101: Reimbursement Requests were Not Formally Approved by the City Prior to Submission Planned Corrective Action: The City will update its procedures to require documented City review and approval of all reimbursement requests prior to submission to a grantor. The City will also clarify responsibilities with the consultant to ensure submission and acknowledgment are independently performed and appropriately documented. Anticipated Completion Date: 09/30/2026 Responsible Contact Person: Kimberly Dalton, Bookkeeper

View Audit 384721

Finding 1170967 (2024-002)

Material Weakness 2024

County of York, Pennsylvania

PA

Student Financial Aid Cash Management Matching / Level of Effort / Earmarking

We concur with this finding. The County of York has hired a Human Services Director of Finance to assist with improving systems and financial processes within the Human Services (HS) divisions. The HS Executive Director and Director of Finance are recommending engaging an expert Consultant to assist...

We concur with this finding. The County of York has hired a Human Services Director of Finance to assist with improving systems and financial processes within the Human Services (HS) divisions. The HS Executive Director and Director of Finance are recommending engaging an expert Consultant to assist the County’s Children & Youth Fiscal team in getting caught up on internal system timelines, as well as delayed reporting. The Consulting company will also be working to adequately train the Children & Youth Fiscal team for development purposes.

View Audit 384337

Finding 1170865 (2024-002)

Material Weakness 2024

West Oakland Health Council

CA

Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking

Management acknowledges this condition related to lack of adequate controls over the sliding fee discount program and is creating controls that will assure compliance with requirements.

View Audit 384156

Finding 1170832 (2024-002)

Material Weakness 2024

Warren County, Missouri

MO

Material Weakness Reporting Matching / Level of Effort / Earmarking § 200.303

The County will work diligently to implement internal controls over its federal award program to ensure accurate reporting of any activity.

View Audit 384122

Finding 1170826 (2024-002)

Material Weakness 2024

The City of Oklahoma City

OK

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Procurement, Suspension & Debarment § 200.303

Finding 2024-002: (Significant Deficiency) AL# 21.027: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds, U.S. Department of Treasury Condition: The City’s control procedures for the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) requires the department personnel to authorize ...

Finding 2024-002: (Significant Deficiency) AL# 21.027: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds, U.S. Department of Treasury Condition: The City’s control procedures for the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) requires the department personnel to authorize payment and the program manager to certify the expenditures to the CSLFRF program prior to being paid. The program manager did not approve four invoices prior to the expenditure being charged to the grant. Criteria or Specific Requirement: 2 CFR 200.303, the Non-Federal entity must establish and maintain effective internal controls over federal awards to ensure compliance with federal statutes, regulations and the terms and conditions of the awards. Cause: Purchase orders are created that identify projects that are part of the CSLFRF and expenditures coding is assigned at that time prior to the purchase. Once the invoice was approved by department personnel, the expenditures were applied to the assigned purchase order coding. Effect: Failure to follow established internal controls increases the risk of noncompliance with the grant requirements and processing unallowable costs towards the grant. Corrective Plan: To address the underlying issues identified in the audit finding, the City will implement the following steps: 1.Correct Approval Control GapInternal Audit worked with Accounts Payable and department personnel and made recommendations tocorrect the control gap and ensure compliance with approval procedures. It is anticipated theserecommendations will be implemented in the next two months. Additional review steps were added inaccounts payable to ensure required approvals obtained prior to payment processing. 2.Implement Monitoring ReportAccounting services developed a report to verify approvals and provide secondary oversight for CSLFRFexpenditures. These actions will be implemented and monitored to ensure compliance with grant requirements. Alex Fedak, CPA 1/7/26 Date Controller

View Audit 384102

Finding 1170825 (2024-004)

Material Weakness 2024

The City of Oklahoma City

OK

Cash Management HUD Housing Programs Reporting § 200.303

Finding 2024-004: (Significant Deficiency) AL# 14.218: CDBG - Entitlement Grants Cluster, U.S. Department of Housing and Urban Development, all open grants and years Condition: During testing of the PR26 – CDBG Financial Summary report, it was identified that one payroll cycle was reported twice, re...

Finding 2024-004: (Significant Deficiency) AL# 14.218: CDBG - Entitlement Grants Cluster, U.S. Department of Housing and Urban Development, all open grants and years Condition: During testing of the PR26 – CDBG Financial Summary report, it was identified that one payroll cycle was reported twice, resulting in a duplication of payroll costs and an overstated reimbursement request. Criteria or Specific Requirement: 2 CFR 200.303(a) states that the City is required to establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Cause: The The ERP system conversion presented challenges to the City related to report development and in particular accuracy of the project management system. Effect: The reimbursement request was overstated, resulting in an excess draw of funds. This creates a risk of noncompliance with the grant requirements and potential repayment of funds. Corrective Plan: To address the underlying issues identified in the audit finding, the City will implement the following steps: 1.Coordinate with HUDResolve the duplicated payroll amount, including reimbursement or offset of the excess draw,in accordance with HUD guidance. 2.Reconcile Payroll Expenditures and DrawsPerform reconciliation of payroll-related expenditures and reimbursement draws for all HUDgrants for January 1–June 30, 2024, to ensure amounts claimed agree to general ledgeractivity. 3.Strengthen Recordkeeping and Reimbursement PracticesIn addition, the City will ensure that recordkeeping and reimbursement preparationpractices related to payroll expenses included in grant draw requests are sufficient tosupport amounts claimed and agree to general ledger activity.The Accounting Services Division will review existing departmental documentation practicesand communicate consistent expectations and best practices to promote accurate, complete,and supportable payroll draw requests.The City anticipates working with the department and having this process fully in place within3–4 months. These actions will be implemented and monitored to ensure compliance with grant requirements. Benjamin E Davis 1/7/26 Date Principal Planner Alex E Fedak 1/7/26 Date Controller

View Audit 384102

Corrective Action Plans

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