Corrective Action Plans

Finding 1191046 (2025-575)

Material Weakness 2025

State of Connecticut Drinking Water Fund - State Revolving Fund

CT

Subrecipient Monitoring Matching / Level of Effort / Earmarking § 200.303 § 200.306 § 200.332

Recommendation: The Judicial Branch should strengthen internal controls to ensure it complies with federal subrecipient monitoring requirements for the Crime Victim Assistance program. Corrective Action Plan as Reported by the Judicial Branch: The Judicial Branch Office of Victim Services (OVS) agre...

Recommendation: The Judicial Branch should strengthen internal controls to ensure it complies with federal subrecipient monitoring requirements for the Crime Victim Assistance program. Corrective Action Plan as Reported by the Judicial Branch: The Judicial Branch Office of Victim Services (OVS) agrees to strengthen its internal controls as described below to comply with federal subrecipient monitoring requirements for the Victims of Crime Act Assistance (VOCA) Program. In 2025, OVS performed site visits for four VOCA-funded programs and completed financial-desk reviews of monthly or quarterly financial reports for all programs. That year, OVS experienced personnel turnover in its three-employee Fiscal Services Unit, notably the separation from state service of a Program Manager and a Court Planner, who together performed OVS’ programmatic site visits of VOCA-funded programs. Also, there was a significant increase in workload resulting from OVS’ contributions to the 2024-2025 VOCA request-for-proposal process. In response, staff outside the unit contributed while managing other assigned duties, a Program Manager and Grants and Contract Specialist were hired to restore the unit to its three-employee configuration, the new employees received training on subrecipient monitoring policies and procedures, and a revised subrecipient site visit plan was developed and has begun being implemented. To strengthen internal controls, OVS has developed a revised site visit plan for the remaining VOCA-funded programs scheduled to receive site visits in 2025. April 15, 2026, is the anticipated date for OVS to complete the site visits. OVS has completed sending letters to the subrecipients operating the VOCA-funded programs. The letters request supporting documentation, which is programmatic and financial in nature, in accordance with OVS administrative policy and procedure. Also, the letters inform subrecipients that site visits will commence in accordance with a revised site visit plan. Anticipated Completion Date: April 15, 2026 Judicial Branch Contact Person: Marc Pelka, Office of Victim Services Director marc.pelka@jud.ct.gov (860) 263-2760

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Finding 1191035 (2025-028)

Material Weakness 2025

State of Connecticut Drinking Water Fund - State Revolving Fund

CT

Questioned Costs Special Tests & Provisions Equipment & Real Property Management § 200.303

Recommendation: The Department of Social Services should strengthen internal controls to ensure that it consistently secures, tracks, and records returned cards for the Summer EBT program. Corrective Action Plan as Reported by the Department of Social Services: The Department agrees with this findin...

Recommendation: The Department of Social Services should strengthen internal controls to ensure that it consistently secures, tracks, and records returned cards for the Summer EBT program. Corrective Action Plan as Reported by the Department of Social Services: The Department agrees with this finding. However, the Department believes that there are proper internal controls to ensure the security of returned cards. There was no log maintained by the Department but the controls in place reduced the risk of benefits being used incorrectly to an acceptable level. The returned cards were destroyed, and all unused benefits were expunged. Anticipated Completion Date: N/A Department of Social Services Contact Person: Andy Davis, Fiscal Administrative Manager 2 860-424-5709

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Finding 1191034 (2025-027)

Material Weakness 2025

State of Connecticut Drinking Water Fund - State Revolving Fund

CT

Internal Control / Segregation of Duties Questioned Costs Eligibility § 200.303

Recommendation: The Department of Social Services should strengthen internal controls to identify the agency responsible for each client’s eligibility determination and document benefit iteration approvals for the Summer Electronic Benefits Transfer Program for Children. Corrective Action Plan as Re...

Recommendation: The Department of Social Services should strengthen internal controls to identify the agency responsible for each client’s eligibility determination and document benefit iteration approvals for the Summer Electronic Benefits Transfer Program for Children. Corrective Action Plan as Reported by the Department of Social Services: The Department disagrees with this finding. Condition #1: Eligibility for the Summer EBT program is established through multiple pathways: receipt of Supplemental Nutrition Assistance Program (SNAP) benefits, Temporary Family Assistance (TFA), or HUSKY A coverage, and through applying for and receiving an eligibility determination for either the National School Lunch Program or the Summer EBT program itself. Determining eligibility is a shared responsibility between DSS and the State Department of Education (SDE), and children qualify through multiple pathways simultaneously. DSS maintains a record within its eligibility system and compiles reports of all eligible children. When eligibility is established through any additional means, the child’s record is then analyzed against all previous issuances to ensure duplicate participation and double issuance does not occur. Title 7 CFR Part 292.16 (a)(5)(i) requires the Summer EBT agency to establish a master issuance file which contains all information needed to identify eligible children, issue Summer EBT benefits, record the participation activity for each household and supply all information necessary to fulfill reporting requirements. The agency is not required to specify which program(s) were used to determine eligibility, which is reasonable given that there may be multiple overlapping avenues of eligibility. The implication that DSS is somehow not compliant or able to identify the source of eligibility is inaccurate. DSS can identify this information on an individual basis through reviewing the child’s receipt of SNAP, TFA, HUSKY A, or through its ongoing coordination and communication with SDE. Condition #2: It is not a requirement of the business systems division to request approval for each issuance. Each year the Department issues benefits for this program in a consistent manner. Since there were no changes to the process during the audit period, approval was not sought for the issuances. Business systems would only seek approval if there was a change to the process. Anticipated Completion Date: N/A Department of Social Services Contact Person: Dan Giacomi, Program Division Director 860-424-5080

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Finding 1191025 (2025-001)

Material Weakness 2025

Chatham University

PA

Questioned Costs Reporting Significant Deficiency

United States Department of Education Student Financial Assistance Cluster - Assistance Listing No. 84.SFA Condition: The University was unable to provide documentation of certain instances of internal controls procedures occurring. Recommendation: Management should review policies and procedures ov...

United States Department of Education Student Financial Assistance Cluster - Assistance Listing No. 84.SFA Condition: The University was unable to provide documentation of certain instances of internal controls procedures occurring. Recommendation: Management should review policies and procedures over retention of internal control documentation. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Processes and procedues were reviewed, updated, documented and implemented upon the hiring of Assistant Vice President of Financial Aid, Jill Bittel on September 15, 2025. Name(s) of the contact person(s) responsible for corrective action: Jill Bittel, Assistant Vice President, Financial Aid Planned completion date for corrective action plan: Complete and provided to audit to prove current processes in place with all new staff are corretly implemented.

View Audit 395253

Finding 1191017 (2025-024)

Material Weakness 2025

State of Delaware

DE

Eligibility Questioned Costs Significant Deficiency § 200.303

Reference Number: 2025-024 Prior Year Finding: No Federal Agency: U.S. Department of Health and Human Services State Department Name: Department of Health and Social Services State Division Name: Division of Medicaid and Medical Assistance Federal Program: Medicaid Cluster Assistance Listing Number:...

Reference Number: 2025-024 Prior Year Finding: No Federal Agency: U.S. Department of Health and Human Services State Department Name: Department of Health and Social Services State Division Name: Division of Medicaid and Medical Assistance Federal Program: Medicaid Cluster Assistance Listing Number: 93.775, 93.777, 93.778 Award Number and Year: 2405DE5MAP (10/1/2023 – 9/30/2024) 2505DE5MAP (10/1/2024 – 9/30/2025) Compliance Requirement: Eligibility Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Recommendation: The Division should implement procedures and controls to ensure that it maintains documentation supporting participant eligibility and this 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: The Division of Medicaid and Medical Assistance (DMMA) in partnership with the Division of Social Services (DSS) will provide training for determination member eligibility. DSS will also ensure supporting participant eligibility documentation is properly maintained. Name(s) of the contact person(s) responsible for corrective action: Kathleen Mahoney, Social Service Sr. Administrator, DMMA Carolyn Kincaid, Social Service Chief Administrator, DSS Marcella Spady, Deputy Principal Assist, DSS Planned completion date for corrective action plan: September 2026

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Finding 1191013 (2025-023)

Material Weakness 2025

State of Delaware

DE

Questioned Costs Special Tests & Provisions Significant Deficiency § 200.303

Reference Number: 2025-023 Prior Year Finding: 2024-022 Federal Agency: U.S. Department of Health and Human Services State Department Name: Department of Health and Social Services State Division Name: Division of Medicaid and Medical Assistance Federal Program: Children’s Health Insurance Program, ...

Reference Number: 2025-023 Prior Year Finding: 2024-022 Federal Agency: U.S. Department of Health and Human Services State Department Name: Department of Health and Social Services State Division Name: Division of Medicaid and Medical Assistance Federal Program: Children’s Health Insurance Program, Medicaid Cluster Assistance Listing Number: 93.767, 93.775, 93.777, 93.778 Award Number and Year: 2405DE5021 (10/1/2023 – 9/30/2025) 2505DE5021 (10/1/2024 – 9/30/2026) 2405DE5MAP (10/1/2023 – 9/30/2024) 2505DE5MAP (10/1/2024 – 9/30/2025) Compliance Requirement: Special Tests and Provisions – Managed Care Financial Audit Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Recommendation: The Division should implement procedures and controls to ensure that it posts the results of independent audits to its website once completed, as required. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: DMMA will revirew the procedures and provide additional training for staff to ensure each MCO has had an audit, obtain copies of the audit, reviews the results, and post the results of the audit on the website. Name(s) of the contact person(s) responsible for corrective action: Colleen Yezek, Chief of Admin. MCO Ops. Donna O’Hanlon, Soc. Service Sr. Admin. Planned completion date for corrective action plan: September 2026

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Finding 1191009 (2025-022)

Material Weakness 2025

State of Delaware

DE

Questioned Costs Special Tests & Provisions Eligibility § 200.303

Reference Number:2025-022 Prior Year Finding:2024-023 Federal Agency:U.S. Department of Health and Human Services State Department Name:Department of Health and Social Services State Division Name:Division of Medicaid and Medical Assistance Federal Program:Medicaid Cluster Assistance Listing Number:...

Reference Number:2025-022 Prior Year Finding:2024-023 Federal Agency:U.S. Department of Health and Human Services State Department Name:Department of Health and Social Services State Division Name:Division of Medicaid and Medical Assistance Federal Program:Medicaid Cluster Assistance Listing Number:93.775, 93.777, 93.778 Award Number and Year: 2405DE5MAP (10/1/2023 – 9/30/2024) 2505DE5MAP (10/1/2024 – 9/30/2025) Compliance Requirement:Special Tests and Provisions – Provider Health and Safety Standards Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance Recommendation: The Division should reevaluate its current process and perform additional training to ensure documentation is maintained in accordance with program requirements and that all providers are compliant with required health and safety standards. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: DMMA will review the process of storing all data for provider’s screening and credentialing information. In addition, when a provider enrolls or revalidates into DMAP, they will be required to submit updated credentials and license information. Name(s) of the contact person(s) responsible for corrective action: Mei Johnson, Chief of Admin. IT Unit Planned completion date for corrective action plan: September 2026

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Finding 1190991 (2025-015)

Material Weakness 2025

State of Delaware

DE

Questioned Costs Subrecipient Monitoring Reporting § 200.303

Reference Number: 2025-015 Prior Year Finding: No Federal Agency: U.S. Department of the Treasury State Department Name: Office of the Governor Federal Program: COVID-19 – Coronavirus Capital Projects Fund Assistance Listing Number: 21.029 Award Number and Year: CPFFN0144 (2/4/2022 – 12/31/2026) Com...

Reference Number: 2025-015 Prior Year Finding: No Federal Agency: U.S. Department of the Treasury State Department Name: Office of the Governor Federal Program: COVID-19 – Coronavirus Capital Projects Fund Assistance Listing Number: 21.029 Award Number and Year: CPFFN0144 (2/4/2022 – 12/31/2026) Compliance Requirement: Reporting Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Recommendation: We recommend that the Office enhance its procedures and internal controls to ensure that reported square footage agrees with supporting documentation. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The ARPA team acknowledges that the discrepancy in reported square footage resulted from a data entry error and insufficient controls to ensure that updates to project data were reflected in subsequent reporting periods. To address this, the team has implemented enhanced data validation procedures, including reconciliation of reported data to supporting documentation each reporting period, formal tracking of changes to project data, and a secondary review of key data elements prior to submission. Ongoing monitoring will be performed to ensure continued accuracy and consistency across reporting periods. Name(s) of the contact person(s) responsible for corrective action: John Celatka and Greg Sweeney Planned completion date for corrective action plan: June 30, 2026

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Finding 1190989 (2025-013)

Material Weakness 2025

State of Delaware

DE

Questioned Costs Reporting Significant Deficiency § 200.303

Reference Number: 2025-013 Prior Year Finding: 2024-013 Federal Agency: U.S. Department of the Treasury State Department Name: Office of the Governor Federal Program: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Number and Year: SLFRP0139 (3/3/...

Reference Number: 2025-013 Prior Year Finding: 2024-013 Federal Agency: U.S. Department of the Treasury State Department Name: Office of the Governor Federal Program: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Number and Year: SLFRP0139 (3/3/2021 – 12/31/2024) SLFRP2629 (3/3/2021 – 12/31/2024) Compliance Requirement: Reporting Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Recommendation: We recommend that the Office enhance procedures and internal controls to ensure that it reports and/or maintains in project files capital project justifications that contain all required elements. The Office should provide training of State agency personnel and conduct periodic reviews of written capital project justifications to ensure that they comply with program requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The ARPA team acknowledges that the repeat finding related to capital project justifications resulted from gaps in enforcement and follow-up procedures with state agencies. While guidance was provided, the team did not consistently ensure that complete and compliant capital project justifications were obtained and reviewed prior to reporting. Contributing factors included limited staffing resources also impacted agencies’ ability to provide complete historical information for projects initiated in prior reporting periods. In several cases, agency personnel responsible for original project justifications were no longer available, making it more difficult to obtain sufficient documentation to meet Treasury requirements. However, the ARPA team recognizes that these challenges do not mitigate the responsibility to ensure compliance with reporting requirements. To address this, the ARPA team will implement enhanced controls to ensure compliance with capital project justification requirements. These include requiring complete justifications prior to reporting, use of a standardized template and review checklist, and a formal second-level review process to verify completeness and accuracy. In addition, the team will maintain centralized tracking of all submissions, implement formal escalation procedures for nonresponsive agencies, and provide ongoing training and guidance, including support for new agency personnel. Periodic compliance reviews will also be conducted to ensure continued adherence to program requirements. These actions are designed to strengthen internal controls, improve accountability, and ensure that all reported capital project justifications fully comply with Treasury requirements. Name(s) of the contact person(s) responsible for corrective action: John Celatka and Greg Sweeney Planned completion date for corrective action plan: June 30, 2026

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Finding 1190988 (2025-012)

Material Weakness 2025

State of Delaware

DE

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

Reference Number: 2025-012 Prior Year Finding: 2024-006 Federal Agency: U.S. Department of Labor State Agency: Department of Labor State Division: Division of Unemployment Insurance Federal Program: Unemployment Insurance, COVID-19 – Unemployment Insurance Assistance Listing Number: 17.225 Award Num...

Reference Number: 2025-012 Prior Year Finding: 2024-006 Federal Agency: U.S. Department of Labor State Agency: Department of Labor State Division: Division of Unemployment Insurance Federal Program: Unemployment Insurance, COVID-19 – Unemployment Insurance Assistance Listing Number: 17.225 Award Number and Period: UI372152255A10 (10/1/2021 – 12/31/2024) UI393142355A10 (10/1/2022 – 12/31/2025) 24A55UI000067 (10/1/2023 – 12/31/2026) 25A55UI000116 (1/1/2024 – 12/31/2027) Compliance Requirement: Special Tests and Provisions – Employer Experience Rating Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Recommendation: The Division should review and enhance procedures and controls to ensure that employer experience rates are properly calculated and applied. Explanation of disagreement with audit finding: Disagreement with Finding-New Employer Rate Assignment Action taken in response to finding: We disagree with the finding as we believe the employer’s account effective date and liability status were established in accordance with the applicable state UI laws and regulations. Documentation can be provided to substantiate this determination. Account# 69821 was established in November of 2024 with a liability date of 04/2013 per employer’s application on file, which gave the employer a new employer rate of 2.8. After my discussion with the auditor on 3/19/26, I pulled the folder to further investigate. Based on this review, we conclude that the rate assignment was accurate and compliant, and therefore the finding appears to be based on a misunderstanding of the employer’s account status or the applicable rate criteria. The business already implemented a corrective action plan in 2025 which entailed changing how the calculation is performed. This calculation is now done outside of the Mainframe system in compliance with Title 19 rules with results uploaded into the system after calculation. The UI program successfully provided an auditable population for calendar year 2025 Name(s) of the contact person(s) responsible for corrective action: Angela Hackett, Administrator Planned completion date for corrective action plan: We have internal controls in place to mitigate the risk of an incorrect rate being assigned to a new employer. This issue was corrected in 2025 when finding was first originally presented.

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Finding 1190986 (2025-011)

Material Weakness 2025

State of Delaware

DE

Questioned Costs Reporting Significant Deficiency § 200.303

Reference Number: 2025-011 Prior Year Finding: 2024-012 Federal Agency: U.S. Department of Labor State Department Name: Department of Labor State Division Name: Division of Unemployment Insurance Federal Program: Unemployment Insurance, COVID-19 – Unemployment Insurance Assistance Listing Number: 17...

Reference Number: 2025-011 Prior Year Finding: 2024-012 Federal Agency: U.S. Department of Labor State Department Name: Department of Labor State Division Name: Division of Unemployment Insurance Federal Program: Unemployment Insurance, COVID-19 – Unemployment Insurance Assistance Listing Number: 17.225 Award Number and Year: UI372152255A10 (10/1/2021 – 12/31/2024) UI393142355A10 (10/1/2022 – 12/31/2025) 24A55UI000067 (10/1/2023 – 12/31/2026) 25A55UI000116 (1/1/2024 – 12/31/2027) Compliance Requirement: Reporting – ETA 9130, Financial Status Report, UI Programs Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Recommendation: We recommend the Division review and enhance procedures and internal controls to ensure that ETA 9130 reports agree with supporting documentation and that documentation is maintained and is readily available for audit. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We acknowledge the audit finding that several ETA 9130 reports did not agree with the supporting documentation. Procedures have been implemented to ensure documentation used to complete the ETA 9130 reports are reviewed by both the Certifying and Approving Officials before final sign off. Procedures will be documented and saved for ease of retrieval and use. Backup will be saved in clearly marked folders on our Fiscal drive for ease of retrieval. Name(s) of the contact person(s) responsible for corrective action: Michael Soper, Fiscal Management Planned completion date for corrective action plan: Procedures are in use for QE 03/31/2026 ETA 9130 reports. Procedures will be documented by QE 06/30/2026 for ETA 9130 reports with revisions as needed.

View Audit 395248

Finding 1190984 (2025-010)

Material Weakness 2025

State of Delaware

DE

Eligibility Questioned Costs Significant Deficiency § 200.303

Reference Number: 2025-010 Prior Year Finding: 2024-004 Federal Agency: U.S. Department of Labor State Department Name: Department of Labor State Division Name: Division of Unemployment Insurance Federal Program: Unemployment Insurance, COVID-19 – Unemployment Insurance Assistance Listing Number: 17...

Reference Number: 2025-010 Prior Year Finding: 2024-004 Federal Agency: U.S. Department of Labor State Department Name: Department of Labor State Division Name: Division of Unemployment Insurance Federal Program: Unemployment Insurance, COVID-19 – Unemployment Insurance Assistance Listing Number: 17.225 Award Number and Year: UI372152255A10 (10/1/2021 – 12/31/2024) UI393142355A10 (10/1/2022 – 12/31/2025) 24A55UI000067 (10/1/2023 – 12/31/2026) 25A55UI000116 (1/1/2024 – 12/31/2027) Compliance Requirement: Eligibility Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Recommendation: The Division should review and enhance procedures and controls to ensure that claimant eligibility is properly determined, that documentation supporting claimant eligibility is retained, and that documentation is readily available for audit. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: For 3 of 60 claimants, the Division was unable to provide documentation that the claimant provided weekly updates. These cases (sample 2,7 and 36) relate to claimant weekly certifications and their responses to required eligibility questions for the applicable benefit weeks. Due to existing mainframe system limitations, the Division does not have the ability to directly view all claimant responses within the system interface. In preparation for the CLA review, Application Support generated a comprehensive report capturing weekly certification responses for all sampled claimants, based on Social Security Numbers. However, three claimants did not appear on this report, and therefore their responses could not be verified at the time of review. The Division has identified both short-term and long-term corrective actions to address this discrepancy:  Short-term solution: A service ticket has been submitted to the Application Support team to investigate and resolve the issue that caused these claimants to be excluded from the report. Once resolved, future reports are expected to consistently capture all claimant responses associated with weekly certifications. * Long-term solution: The Division recognizes the need for a modernized system to improve the efficiency and reliability of claims processing and adjudication. Current case management systems are outdated and have limited functionality. Implementation of an updated system will allow for automated capture of weekly certification responses, improved data accessibility, and enhanced identification of potential compliance issues requiring investigation. Name(s) of the contact person(s) responsible for corrective action: Rachael Griffith, UI Administrator Planned completion date for corrective action plan: March 31, 2027

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Finding 1190982 (2025-009)

Material Weakness 2025

State of Delaware

DE

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.303 § 200.403

Reference Number: 2025-009 Prior Year Finding: 2024-011 Federal Agency: U.S. Department of Labor State Department Name: Department of Labor State Division Name: Division of Unemployment Insurance Federal Program: Unemployment Insurance, COVID-19 – Unemployment Insurance Assistance Listing Number: 17...

Reference Number: 2025-009 Prior Year Finding: 2024-011 Federal Agency: U.S. Department of Labor State Department Name: Department of Labor State Division Name: Division of Unemployment Insurance Federal Program: Unemployment Insurance, COVID-19 – Unemployment Insurance Assistance Listing Number: 17.225 Award Number and Year: 24A55UI000067 (10/1/2023 – 12/31/2026) 25A55UI000116 (10/1/2024 – 12/31/2027) Compliance Requirement: Allowable Cost/Cost Principles Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Recommendation: The Division should reevaluate its procedures and controls regarding general disbursements to ensure that supporting documentation is readily available upon audit request. Explanation of disagreement with audit finding: We acknowledge that audit ready evidence was not produced in a timely fashion but respectfully disagree that the Division did not maintain this evidence. The lack of timely production can be attributed to lack of awareness of the proper repository where such audit evidence was maintained and/or could be easily retrieved, as opposed to no maintenance at all. We also maintain that the division was able to substantiate all expenses queried. Action taken in response to finding: The business will continue to refine its process for maintaining audit ready evidence to improve response time in future engagements. Name(s) of the contact person(s) responsible for corrective action: Michael Soper, Fiscal Management Planned completion date for corrective action plan: March 31, 2027

View Audit 395248

Finding 1190978 (2025-007)

Material Weakness 2025

State of Delaware

DE

Questioned Costs Material Weakness Reporting § 200.303

Reference Number: 2025-007 Prior Year Finding: No Federal Agency: U.S. Department of Labor State Department Name: Department of Labor State Division Name: Division of Unemployment Insurance Federal Program: Unemployment Insurance, COVID-19 – Unemployment Insurance Assistance Listing Number: 17.225 A...

Reference Number: 2025-007 Prior Year Finding: No Federal Agency: U.S. Department of Labor State Department Name: Department of Labor State Division Name: Division of Unemployment Insurance Federal Program: Unemployment Insurance, COVID-19 – Unemployment Insurance Assistance Listing Number: 17.225 Award Number and Year: UI372152255A10 (10/1/2021 – 12/31/2024) UI393142355A10 (10/1/2022 – 12/31/2025) 24A55UI000067 (10/1/2023 – 12/31/2026) 25A55UI000116 (1/1/2024 – 12/31/2027) Compliance Requirement: Reporting – ETA 2112, UI Financial Transaction Summary Type of Finding: Material Weakness in Internal Control Over Compliance Recommendation: We recommend the Division review and enhance internal controls to ensure that ETA 2112 reports are reviewed and approved prior to submission. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: There is already a signature on the report we will now have that is signed and dated and will also add an additional line for preparer signature and date. Name(s) of the contact person(s) responsible for corrective action: Marie Cameron, Director of UI Planned completion date for corrective action plan: Quarter 1 2026.

View Audit 395248

Finding 1190976 (2025-006)

Material Weakness 2025

State of Delaware

DE

Questioned Costs Material Weakness Reporting § 200.303

Reference Number: 2025-006 Prior Year Finding: 2024-007 Federal Agency: U.S. Department of Labor State Agency: Department of Labor State Division: Division of Unemployment Insurance Federal Program: Unemployment Insurance, COVID-19 – Unemployment Insurance Assistance Listing Number: 17.225 Award Num...

Reference Number: 2025-006 Prior Year Finding: 2024-007 Federal Agency: U.S. Department of Labor State Agency: Department of Labor State Division: Division of Unemployment Insurance Federal Program: Unemployment Insurance, COVID-19 – Unemployment Insurance Assistance Listing Number: 17.225 Award Number and Period: UI372152255A10 (10/1/2021 – 12/31/2024) UI393142355A10 (10/1/2022 – 12/31/2025) 24A55UI000067 (10/1/2023 – 12/31/2026) 25A55UI000116 (1/1/2024 – 12/31/2027) Compliance Requirement: Reporting – ETA 2208A, Quarterly UI Above-Base Report Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance Recommendation: The Division should review and update its reporting internal controls to ensure that ETA 2208A – Quarterly UI Above-Base Reports tie to supporting documentation and that supporting documentation is retained and readily available for audit. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We acknowledge the audit finding that the Division was unable to provide supporting documentation for QE 09/30/2024 ETA 2208A report. Procedures have been implemented to ensure documentation used to complete the ETA 2208A is saved in clearly marked folders on our Fiscal drive for ease of retrieval. Procedures will be documented and saved for ease of retrieval and use. Name(s) of the contact person(s) responsible for corrective action: Michael Soper, Fiscal Management Planned completion date for corrective action plan: Procedures are already in use for QE 12/31/2025 ETA 2208A report. Procedures will be documented by QE 06/30/2026 with revisions as needed.

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Finding 1190974 (2025-005)

Material Weakness 2025

State of Delaware

DE

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

Reference Number: 2025-005 Prior Year Finding: 2024-005 Federal Agency: U.S. Department of Labor State Agency: Department of Labor State Division: Division of Unemployment Insurance Federal Program: Unemployment Insurance, COVID-19 – Unemployment Insurance Assistance Listing Number: 17.225 Award Num...

Reference Number: 2025-005 Prior Year Finding: 2024-005 Federal Agency: U.S. Department of Labor State Agency: Department of Labor State Division: Division of Unemployment Insurance Federal Program: Unemployment Insurance, COVID-19 – Unemployment Insurance Assistance Listing Number: 17.225 Award Number and Period: UI372152255A10 (10/1/2021 – 12/31/2024) UI393142355A10 (10/1/2022 – 12/31/2025) 24A55UI000067 (10/1/2023 – 12/31/2026) 25A55UI000116 (1/1/2024 – 12/31/2027) Compliance Requirement: Special Tests and Provisions – UI Benefit Payments Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance Recommendation: We recommend the Division review and enhance procedures and controls to ensure that it performs weekly claim investigations and that case investigations are completed timely in accordance with the time limits established in the ET Handbook No. 395. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Division of Unemployment Insurance (Division) acknowledges the finding and agrees that improvements are necessary to ensure full compliance with Benefits Accuracy Measurement (BAM) program requirements. The Division recognizes the importance of conducting weekly investigations and adhering to established timeliness standards to maintain the integrity and accuracy of unemployment insurance benefit payments and denied claims. The Division notes that the identified deficiencies were primarily due to significant staffing shortages and competing operational demands, which were further exacerbated by the sustained workload associated with pandemic-related programs. These challenges affected the Division’s capacity to complete the required number of weekly investigations and to meet prescribed case completion timeframes. To address these issues, the Division has taken and will continue to take corrective actions, including: · Actively recruiting and onboarding additional staff dedicated to BAM operations. · Providing enhanced training to ensure staff are equipped to conduct timely and thorough investigations. · Implementing improved case management and tracking mechanisms to monitor timeliness and workload distribution. · Evaluating internal processes to identify efficiencies and reduce delays in case completion. The Division is committed to strengthening internal controls and ensuring compliance with federal requirements. Management will continue to monitor progress and take additional corrective actions as necessary to meet BAM performance standards moving forward. Name(s) of the contact person(s) responsible for corrective action: Evan Douglass, DUI Quality Control and Continuous Improvement Administrator Planned completion date for corrective action plan: March 31, 2027

View Audit 395248

Finding 1190972 (2025-004)

Material Weakness 2025

State of Delaware

DE

Cash Management Questioned Costs Significant Deficiency § 200.303

Reference Number: 2025-004 Prior Year Finding: No Federal Agency: U.S. Department of Health and Human Services State Department Name: Department of Health and Social Services State Division: Division of Public Health Federal Program: WIC Special Supplemental Nutrition Program for Women, Infants, and...

Reference Number: 2025-004 Prior Year Finding: No Federal Agency: U.S. Department of Health and Human Services State Department Name: Department of Health and Social Services State Division: Division of Public Health Federal Program: WIC Special Supplemental Nutrition Program for Women, Infants, and Children Assistance Listing Number: 10.557 Award Number and Year: 241DE701W1003 (10/1/2023 – 9/30/2024) Compliance Requirement: Cash Management Type of Finding: Significant Deficiency in Internal Control Over Compliance Recommendation: The Division should enhance procedures and controls to ensure that drawdown requests are reviewed and approved prior to submission. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Division confirmed the drawdown transaction was accurate and appropriate. The Division reiterated the Cash Management procedure to all staff and confirmed their understanding. In addition, the Division has in place a review process for new stsaff regarding procedures with confirmation of completion. There is an established training manual which has been reviewed to ensure it contains the most update to date process. Manuals and procedures will be reviewed regularly and updated, as needed. Name(s) of the contact person(s) responsible for corrective action: Gary Owens – primary Deborah Fisher and Jennifer Heesh – backups Planned completion date for corrective action plan: March 31, 2026.

View Audit 395248

Finding 1190970 (2025-002)

Material Weakness 2025

State of Delaware

DE

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring § 200.303

Reference Number: 2025-002 Prior Year Finding: No Federal Agency: U.S. Department Agriculture State Agency: Department of Education Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, 10.559, 10.582 Award Number and Year: 202424N109941 (10/1/2023 – 1/30/2025);...

Reference Number: 2025-002 Prior Year Finding: No Federal Agency: U.S. Department Agriculture State Agency: Department of Education Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.556, 10.559, 10.582 Award Number and Year: 202424N109941 (10/1/2023 – 1/30/2025); 202424L160341 (10/1/2023 – 1/30/2025); 202525N109941 (10/1/2024 – 1/28/2026); 202522L160341 (10/1/2024 – 1/28/2026). Compliance Requirement: Reporting – Federal Funding Accountability and Transparency Act (FFATA) Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance Recommendation: We recommend the Department develop procedures and internal controls to ensure that all required subawards are reported timely and accurately no later than the end of the month following the month of issuance of each subaward. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Department will revise and strengthen our policies and procedures to ensure full compliance with FFATA reporting requirements. Updated procedures will require that all applicable child nutrition subawards of $30,000 or more are reported in SAM.gov no later than the end of the month following the month in which the subaward is made, in accordance with Uniform Grant Guidance. Name(s) of the contact person(s) responsible for corrective action: Drew Fioravanti Planned completion date for corrective action plan: June 30, 2026

View Audit 395248

Finding 1190947 (2025-002)

Material Weakness 2025

Wake Forest University

NC

Internal Control / Segregation of Duties Questioned Costs Student Financial Aid § 200.303

The University acknowledges the findings related to NSLDS enrollment reporting, including discrepancies involving OPEID reporting, program-level status effective dates, and other enrollment reporting data elements. The University agrees with the recommendation to enhance the precision of the control...

The University acknowledges the findings related to NSLDS enrollment reporting, including discrepancies involving OPEID reporting, program-level status effective dates, and other enrollment reporting data elements. The University agrees with the recommendation to enhance the precision of the control surrounding the review of enrollment status records, program-level data records, and campus-level data records included in NSLDS reporting submissions. Several corrective actions have already been implemented to address the identified exceptions. Updates have been made within the National Student Clearinghouse (NSC) reporting processes to ensure students are assigned to the appropriate branch codes and that campus-level records reflect the correct OPEID for each reporting entity. In addition, affected student records have been reviewed and updated to ensure program-level status records and effective dates are accurate within the NSC system. Going forward, the Registrar’s Office will monitor enrollment status changes and campus assignments within the NSC reporting process to ensure that status changes, program updates, and campus-level reporting elements are reflected accurately and transmitted in accordance with NSLDS reporting requirements. To further strengthen oversight and prevent recurrence, the Office of Student Financial Aid will implement documented post-submission reconciliation procedures following NSC reporting cycles. These reviews will focus on high-risk enrollment reporting elements, including campus changes, program status changes, and other updates affecting NSLDS reporting, and will validate the accuracy of OPEID assignments and program-level effective dates against institutional records. These enhancements are intended to improve the precision of the University’s existing controls and ensure the accuracy and completeness of future NSLDS enrollment reporting submissions.

View Audit 395231

Finding 1190944 (2025-001)

Material Weakness 2025

Uintah Basin Medical Center

UT

Questioned Costs Material Weakness Significant Deficiency

2025-001 - Policies and Procedures for United Stated Department of Agriculture Reserve Funds Corrective action planned: Upon discovery of the missing documentation, the Medical Center’s finance department immediately initiated a review of the USDA loan agreement. The following actions have been take...

2025-001 - Policies and Procedures for United Stated Department of Agriculture Reserve Funds Corrective action planned: Upon discovery of the missing documentation, the Medical Center’s finance department immediately initiated a review of the USDA loan agreement. The following actions have been taken to remediate the material weakness: ● Policy Development: Management has drafted and implemented a formal “USDA Reserve Fund Policy.” This document explicitly outlines the annual funding requirements and the specific protocols for the disbursement and use of funds. ● Internal Control Implementation: We have established a monthly reconciliation process to verify that the required amounts are transferred and maintained timely. ● Resolution of Underfunding: As noted by the auditors, any historical funding discrepancies were fully addressed and rectified by September 2025. The accounts are currently funded in accordance with the loan covenants. Anticipated completion date: Completed September 2025 Contact person responsible for corrective action: Brent Hales, CFO

View Audit 395218

Finding 1190943 (2025-001)

Material Weakness 2025

El Dorado County Community Health Center

CA

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

Corrective Action Plan: Subsequent to year-end, management has deposited the required funds into the reserve account to bring the organization into compliance with the USDA loan agreement. To prevent recurrence, management will strengthen its monitoring of debt covenant and reserve requirements by i...

Corrective Action Plan: Subsequent to year-end, management has deposited the required funds into the reserve account to bring the organization into compliance with the USDA loan agreement. To prevent recurrence, management will strengthen its monitoring of debt covenant and reserve requirements by implementing the following controls: •Establish a tracking schedule for all loan-related requirements, •Incorporation of reserve funding requirements into the organization’s cash flow planning process, and •Review by appropriate management personnel to ensure timely compliance with all loan agreement provisions. Responsible Party: Judy Stein, CFO Estimated Completion: 03/31/2026

View Audit 395213

Finding 1190929 (2025-002)

Material Weakness 2025

Rider University

NJ

Questioned Costs Student Financial Aid Significant Deficiency

2025-002 Federal Direct Student Loans - Assistance Listing No. 84.268 Recommendation: We recommend the University strengthen its review procedures over student award packages, including a review at the start of each academic year, to ensure Direct Loans are awarded in accordance with grade level and...

2025-002 Federal Direct Student Loans - Assistance Listing No. 84.268 Recommendation: We recommend the University strengthen its review procedures over student award packages, including a review at the start of each academic year, to ensure Direct Loans are awarded in accordance with grade level and dependency status limits. We also recommend the University review all ISIR codes and resolve any that are necessary. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Rider University concurs with the finding. The University will ensure all student award packages and ISIR codes are reviewed and resolved prior to disbursing any Title IV funding. No additional Unsubsidized Loan will be awarded without a Parent PLUS Loan denial received from COD and on file with the Financial Aid Office. Rider has updated the University’s packaging procedures to ensure this process is implemented. Name(s) of the contact person(s) responsible for corrective action: Jacqueline Watford Planned completion date for corrective action plan: Effective Immediately

View Audit 395206

Finding 1190918 (2025-002)

Material Weakness 2025

Fort Scott Community College

KS

Special Tests & Provisions Questioned Costs Student Financial Aid

Special Tests and Provisions – Payment to Students Condition: During our testing of the financial aid disbursements, it was noted the College is not maintaining records of what students the drawdowns were for, therefore we were unable to determine if the amounts were posted to the student accounts w...

Special Tests and Provisions – Payment to Students Condition: During our testing of the financial aid disbursements, it was noted the College is not maintaining records of what students the drawdowns were for, therefore we were unable to determine if the amounts were posted to the student accounts within the required time frame and subsequently were paying out any credit balances created on student accounts. Recommendation: Policies and procedures should be written to provide internal control over the documentation used to complete the drawdowns from the Department of Education. We recommend the College establish a communication and record retention process that allows for the notification of the student financial aid proceeds and a control in place that allows the financial aid department to know the student financial aid was applied to the student’s account timely. Views of responsible officials and planned corrective action: The College has established formal procedures governing the documentation, approval, and processing of financial aid drawdowns from the Department of Education. A segregated and controlled workflow has been implemented through the use of a secure shared electronic folder with restricted access to provide confidentiality and provide documentation of the shared communication between the Financial Aid office who approves the aid, the Business Office who ultimately pulls down from the Department of Education, and with the Cashier who distributes any refunds. The Financial Aid Office prepares and approves disbursement amounts and communicates them via documented reporting; the Business Office reconciles disbursement amounts to individual student accounts prior to drawdown; the CFO initiates drawdowns after documented review and approval; and the Cashier processes student refunds, where applicable. The documentation is being retained and backed up. Measurable targets will be to do this weekly or as batches are prepared for draw-down. This documentation can be found in the secure shared electronic folder, which has already been implemented. Financial aid disbursements are processed on a weekly or batch basis, and funds are applied to student accounts in compliance with federal requirements, generally within three (3) business days of receipt.

View Audit 395201

Finding 1190905 (2025-003)

Material Weakness 2025

Kuumba Community Health & Wellness Center Inc. Dba New Horizons Health

VA

Subrecipient Monitoring Reporting Matching / Level of Effort / Earmarking § 200.302 § 200.333

The organization has developed and implemented a standardized documentation process to ensure that all data submitted is fully supported and traceable to source documentation. Responsible staff have been trained to retain and reference appropriate supporting records for each data element prior to su...

The organization has developed and implemented a standardized documentation process to ensure that all data submitted is fully supported and traceable to source documentation. Responsible staff have been trained to retain and reference appropriate supporting records for each data element prior to submission. A supervisory review step has been added to verify that documentation is complete, accurate, and clearly tied to the reported data before final submission.

View Audit 395197

Finding 1190886 (2025-007)

Material Weakness 2025

Heritage Valley Health System, INC

PA

Allowable Costs / Cost Principles Subrecipient Monitoring Matching / Level of Effort / Earmarking

Management has acknowledged the finding and has implemented enhanced procedures through frequent reconciliations and stricter review policies to ensure documented costs agree to the underlying invoice support. Name of the contact person responsible for corrective action: Garrett Richardson, VP of Fi...

Management has acknowledged the finding and has implemented enhanced procedures through frequent reconciliations and stricter review policies to ensure documented costs agree to the underlying invoice support. Name of the contact person responsible for corrective action: Garrett Richardson, VP of Finance; Haley Kotun, Director of Finance Anticipated completion date: January 2026

View Audit 395174

Corrective Action Plans

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