Corrective Action Plans

Finding 1214456 (2024-008)

Material Weakness 2024

City of Sycamore, Georgia

GA

Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking § 200.318

The City will develop written standards of conduct that satisfy the requirements of 2 CFR § 200.318(c)(1).

View Audit 401171

Finding 1214455 (2024-007)

Material Weakness 2024

City of Sycamore, Georgia

GA

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.302

The City has will develop written procedures for determining the allowability of costs in accordance with 2 CFR 200, Subpart E—Cost Principles and the terms and conditions of the Federal award.

View Audit 401171

Finding 1214454 (2024-006)

Material Weakness 2024

City of Sycamore, Georgia

GA

Cash Management Matching / Level of Effort / Earmarking § 200.302 § 200.305

The City will develop written procedures to implement the requirements of 2 CFR § 200.305 Payment.

View Audit 401171

Finding 1214257 (2024-002)

Material Weakness 2024

Gary Public Transportation Corporation

IN

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

Finding 2024-002 Information on the federal program: Federal Agency: Federal Transportation Administration Pass-Through Entity: N/A Federal Program: Federal Transit Cluster Assistance Listing Number: 20.507 Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs – Cost Principles...

Finding 2024-002 Information on the federal program: Federal Agency: Federal Transportation Administration Pass-Through Entity: N/A Federal Program: Federal Transit Cluster Assistance Listing Number: 20.507 Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs – Cost Principles Audit Findings: Material Weakness Criteria: 2 CFR 200.403 establishes principles and standards for determining costs for federal awards carried out through grants, cost reimbursement contracts, and other agreements with state and local governments. To be allowable, under federal awards, cost must meet certain criteria: a) Be necessary and reasonable for the performance of the Federal award and be allocable thereto under these principles. b) Conform to any limitations or exclusions set forth in these principles or in the Federal award as to types or amount of cost items. c) Be consistent with policies and procedures that apply uniformly to both federally financed and other activities of the non-Federal entity. d) Be accorded consistent treatment. A cost may not be assigned to a Federal award as a direct cost if any other cost incurred for the same purpose in like circumstances has been allocated to the Federal award as an indirect cost. e) Be determined in accordance with generally accepted accounting principles (GAAP), except, for state and local governments and Indian tribes only, as otherwise provided for in this part. f) Not be included as a cost or used to meet cost sharing or matching requirements of any other federally financed program in either the current or a prior period. g) Be adequately documented. h) Cost must be incurred during the approved budget period. Additionally, 2 CFR 200.303 indicates that non-Federal Entities receiving Federal awards must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the nonfederal entity is managing the Federal award in compliance with Federal statutes, regulations and terms and conditions of the Federal award. The Corporation should have controls in place to document that salaries and overtime paid with federal funds were allowable. Timecards supporting hours worked should be approved and pay rates reviewed. Condition and Context: A summary of allowable charges for the grant was prepared for submission. Within the sample of 42, we noted that 9 timecards for bus operators did not have documented review. Documented review was implemented in September 2024. All instances of the error were prior to September 2024. We also noted 1 timecard showed 2 hours more than reflected on the pay register, resulting in a net underpayment. Views of Responsible Officials and Planned Corrective Actions: Management acknowledges the finding. Each department is responsible for ensuring proper timecard records with approval are maintained. A documented review process for bus operators was implemented over timecard records in September 2025. Payroll is responsible for ensuring that the appropriate number of hours are paid to each employee. Additional review will be performed prior to issuance of pay checks to ensure that the appropriate number of hours are being paid.

View Audit 400977

Finding 1214184 (2024-001)

Material Weakness 2024

Institute on Aging

CA

Reporting Matching / Level of Effort / Earmarking § 200.510

Finding 2024-001: Preparation of the Schedule of Expenditures of Federal Awards - Significant Deficiency in Internal Control Over Compliance Program: U.S. Department of Health and Human Services – Medicaid Cluster Management acknowledges the omission of PATH CITED expenditures from the SEFA for the ...

Finding 2024-001: Preparation of the Schedule of Expenditures of Federal Awards - Significant Deficiency in Internal Control Over Compliance Program: U.S. Department of Health and Human Services – Medicaid Cluster Management acknowledges the omission of PATH CITED expenditures from the SEFA for the year ended June 30, 2024. Management notes that the federal nature of the PATH CITED program was not identified in the original grant documentation or publicly available information provided by DHCS at the time the funding was awarded. Upon confirmation in 2025 that the program includes federal pass-through funding, the Organization worked to restate the SEFA and include the appropriate federal expenditures. To strengthen internal controls going forward, management has implemented procedures requiring review of funding agreements for federal funding indicators, maintaining a centralized register of federal awards to support SEFA preparation, and obtaining confirmation from funding agencies when the federal status of a program is unclear. Anticipated Completion Date: by June 30, 2026 Responsible Person: Virginia Lui VP, Controller

View Audit 400903

Finding 1214004 (2024-003)

Material Weakness 2024

City of Colonial Heights

VA

Internal Control / Segregation of Duties Special Tests & Provisions Cash Management

The School Board agrees that, while the reimbursable expenses did not include personnel costs, the Wage Rate (Davis Bacon Act) was not included in the contract language as required for federally funded projects. Management has implemented processes to ensure that any current and future contracts for...

The School Board agrees that, while the reimbursable expenses did not include personnel costs, the Wage Rate (Davis Bacon Act) was not included in the contract language as required for federally funded projects. Management has implemented processes to ensure that any current and future contracts for federally funded projects will include the Wage Rate (Davis Bacon Act) and DOL regulations to ensure compliance.

View Audit 400870

Finding 1213951 (2024-010)

Material Weakness 2024

Creek County

OK

Reporting Matching / Level of Effort / Earmarking § 200.1 § 200.303

The Creek County Clerk’s Office will work with the SEFA preparer to ensure that the correct paid dates are being used when reporting. This should eliminate the actual expenditures differences. We will work to educate all offices involved in the reporting process on financial statement and SEFA.

View Audit 400799

Finding 1213895 (2024-001)

Material Weakness 2024

Redevelopment Authority of the County of Berks

PA

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting § 200.303

In general, management agrees with the finding. It should be noted that internal controls for supervisory review of reporting requirements were in place but were not written controls or processes. Reporting for the CDBG Program is accomplished through the preparation of the annual Comprehensive Annu...

In general, management agrees with the finding. It should be noted that internal controls for supervisory review of reporting requirements were in place but were not written controls or processes. Reporting for the CDBG Program is accomplished through the preparation of the annual Comprehensive Annual Performance and Evaluation Report (CAPER). Written policies and procedures for the CAPER have been developed. Reporting for the Emergency Rental Assistance Program is accomplished through an online reporting system of the U.S. Treasury and by email to the Pennsylvania Human Services Department. This finding has since been resolved in 2025, with a new policy developed and implemented on December 12, 2025.

View Audit 400734

Finding 1213844 (2024-005)

Material Weakness 2024

The Salvation Army Golden State Division

CA

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

Planned Corrective Action: The Division will implement their control of ensuring that they only charge allowable costs incurred during the approved budget period of a federal award’s period of performance or will obtain authorization from the grantor for any costs incurred before the grant's approve...

Planned Corrective Action: The Division will implement their control of ensuring that they only charge allowable costs incurred during the approved budget period of a federal award’s period of performance or will obtain authorization from the grantor for any costs incurred before the grant's approved budget period. Anticipated Completion Date: 9/30/2026 Responsible Contact Person: Al Agpoon, Golden State Division Controller

View Audit 400681

Finding 1213661 (2024-002)

Material Weakness 2024

CANNON STREET YOUNG MENS CHRISTIAN ASSOCIATION

SC

Matching / Level of Effort / Earmarking

Auditors’ recommendation: The Organization should modify its operations to the extent possible to improve operating results and stay in compliance with the loan agreement and debt workout agreement with the USDA. Auditee’s response: The Organization recognizes the challenges it is facing and conside...

Auditors’ recommendation: The Organization should modify its operations to the extent possible to improve operating results and stay in compliance with the loan agreement and debt workout agreement with the USDA. Auditee’s response: The Organization recognizes the challenges it is facing and considers its plan a sound approach to reaching compliance with the loan provisions in the debt workout agreement and loan agreement with the USDA.

View Audit 400601

Finding 1213659 (2024-002)

Material Weakness 2024

CANNON STREET YOUNG MENS CHRISTIAN ASSOCIATION

SC

Matching / Level of Effort / Earmarking

Auditors’ recommendation: The Organization should modify its operations to the extent possible to improve operating results and stay in compliance with the loan agreement and debt workout agreement with the USDA. Auditee’s response: The Organization recognizes the challenges it is facing and conside...

Auditors’ recommendation: The Organization should modify its operations to the extent possible to improve operating results and stay in compliance with the loan agreement and debt workout agreement with the USDA. Auditee’s response: The Organization recognizes the challenges it is facing and considers its plan a sound approach to reaching compliance with the loan provisions in the debt workout agreement and loan agreement with the USDA.

View Audit 400600

Finding 1213572 (2024-050)

Material Weakness 2024

Government of Guam

GU

Matching / Level of Effort / Earmarking § 200.303

Finding No.: 2024-050 Matching, Level of Effort, Earmarking Responding Agency: Guam Homeland Security (GHS) Responsible Personnel: Esther Aguigui, Director GHS will create a Standard Operating Procedure (SOP) to establish internal policies and procedures with applicable matching and earmarking requi...

Finding No.: 2024-050 Matching, Level of Effort, Earmarking Responding Agency: Guam Homeland Security (GHS) Responsible Personnel: Esther Aguigui, Director GHS will create a Standard Operating Procedure (SOP) to establish internal policies and procedures with applicable matching and earmarking requirements. GHS will also identify department personnel responsible.

View Audit 400461

Finding 1213561 (2024-045)

Material Weakness 2024

Government of Guam

GU

Procurement, Suspension & Debarment Subrecipient Monitoring Eligibility

Finding No.: 2024-045 Eligibility Responding Agency: Department of Public Health and Social Services (DPHSS) Responsible Personnel: Theresa Arriola, Director DPHSS agrees with this finding. The Bureau of Economic Security (BES) recognized the finding as an issue and in response, held a bureau-wide t...

Finding No.: 2024-045 Eligibility Responding Agency: Department of Public Health and Social Services (DPHSS) Responsible Personnel: Theresa Arriola, Director DPHSS agrees with this finding. The Bureau of Economic Security (BES) recognized the finding as an issue and in response, held a bureau-wide training for both front desk personnel and eligibility specialists on December 22 - 23, 2025. This training focused on application handling including the timeliness of eligibility determinations and proper documentation maintenance procedures. The training reinforced use of a standardized application checklist that was developed to support application completeness. Staff were also trained in the correct method for uploading documents into the OnBase system, the bureau’s digital record archive, for secure storage and efficient retrieval. In January 2026, BES conducted a Customer Email Standard Operating Procedure (SOP) training to reinforce staff compliance with documentation requirements, including the use of document imaging process (DIP) to ensure customer documentation received via email is uploaded into the OnBase system within two business days. In addition, DPHSS is preparing additional training sessions, which are currently being developed, on topics such as Medicaid Basics 101, Customer Service, and Medicaid Eligibility. To assess compliance with the training, Eligibility Specialist Supervisors were tasked with periodically reviewing random samples of applications across all three centers to verify application completeness, including required documents. BES will further reinforce timeliness compliance by incorporating 45-day timeliness checks and targeted reviews of higher-risk cases into supervisory case reviews. Findings from these reviews will be used to inform corrective action and retraining as needed. DPHSS is also revising the document verification list in the Public Application form to help clients clearly identify required documentation needed to support eligibility determination and reduce the risk of missing or incomplete case files.

View Audit 400461

Finding 1213558 (2024-042)

Material Weakness 2024

Government of Guam

GU

Matching / Level of Effort / Earmarking Reporting

Finding No.: 2024-042 Matching, Level of Effort, Earmarking Responding Agency: Department of Public Health and Social Services (DPHSS) Responsible Personnel: Theresa Arriola, Director The Bureau of Child Care Services (BCCS) disagrees with this finding and maintains that it has enhanced monitoring c...

Finding No.: 2024-042 Matching, Level of Effort, Earmarking Responding Agency: Department of Public Health and Social Services (DPHSS) Responsible Personnel: Theresa Arriola, Director The Bureau of Child Care Services (BCCS) disagrees with this finding and maintains that it has enhanced monitoring controls to ensure compliance with all applicable earmarking requirements. BCCS reports expenditures on a cumulative basis until the grant’s liquidation end date. This reporting structure provides the necessary flexibility to reconsolidate cost categories, ensuring that final totals align with mandated spending thresholds by the end of the grant period. Furthermore, BCCS maintains that Quality Rating and Improvement System (QRIS) initiatives and other quality-enhancing activities were actively conducted throughout the performance period. To ensure a thorough reconciliation of these expenditures, BCCS formally requests the supporting documentation and specific sample set used by the auditors to conclude that these activities were not sufficiently documented or performed. We are prepared to provide evidence of these programmatic activities to demonstrate compliance with earmarking requirements.

View Audit 400461

Finding 1213531 (2024-029)

Material Weakness 2024

Government of Guam

GU

Matching / Level of Effort / Earmarking

Finding No.: 2024-029 Matching, Level of Effort, Earmarking Responding Agency: Bureau of Budget and Management Research (BBMR) Responsible Personnel: Lester Carlson, Director The Agency disagrees with this finding. Please refer to a letter dated March 31, 2026, regarding Reports on Compliance Septem...

Finding No.: 2024-029 Matching, Level of Effort, Earmarking Responding Agency: Bureau of Budget and Management Research (BBMR) Responsible Personnel: Lester Carlson, Director The Agency disagrees with this finding. Please refer to a letter dated March 31, 2026, regarding Reports on Compliance September 30, 2024.

View Audit 400461

Finding 1213528 (2024-026)

Material Weakness 2024

Government of Guam

GU

Matching / Level of Effort / Earmarking

Finding No.: 2024-026 Matching, Level of Effort, Earmarking Responding Agency: Department of Administration (DOA) Responsible Personnel: Edward M. Birn, Director The Agency disagrees with this finding. Please refer to a letter dated March 31, 2026, regarding Reports on Compliance September 30, 2024.

View Audit 400461

Finding 1213525 (2024-023)

Material Weakness 2024

Government of Guam

GU

Matching / Level of Effort / Earmarking § 200.303

Finding No.: 2024-023 Matching, Level of Effort, Earmarking Responding Agency: Department of Administration (DOA) Responsible Personnel: Edward M. Birn, Director The Agency is reviewing its federal grants management to ensure robust handover and succession plans are in place of future programs.

View Audit 400461

Finding 1213521 (2024-019)

Material Weakness 2024

Government of Guam

GU

Matching / Level of Effort / Earmarking § 200.303

Finding No.: 2024-019 Matching, Level of Effort, Earmarking Responding Agency: Department of Administration (DOA) Responsible Personnel: Edward M. Birn, Director The Agency is reviewing the management of Federal Grants to ensure robust handover and succession plans are in place for future programs. ...

Finding No.: 2024-019 Matching, Level of Effort, Earmarking Responding Agency: Department of Administration (DOA) Responsible Personnel: Edward M. Birn, Director The Agency is reviewing the management of Federal Grants to ensure robust handover and succession plans are in place for future programs. The sudden passing of the ERA Program Coordinator directly impacted overall management of the program.

View Audit 400461

Finding 1210999 (2024-021)

Material Weakness 2024

State of Mississippi

MS

Eligibility Material Weakness Reporting § 200.09

93.767 Children's Health Insurance Program (CHIP) 93.778 Medical Assistance Program (Medicaid; Title XIX) Eligibility 2024-021 Strengthen Controls to Ensure Compliance with Eligibility Requirements of the Children's Health Insurance Program (CHIP) and the Medical Assistance Program DOM Response: Use...

93.767 Children's Health Insurance Program (CHIP) 93.778 Medical Assistance Program (Medicaid; Title XIX) Eligibility 2024-021 Strengthen Controls to Ensure Compliance with Eligibility Requirements of the Children's Health Insurance Program (CHIP) and the Medical Assistance Program DOM Response: Use of Tax Return Resources Three MAGI beneficiaries - DOM did not verify self-employment income reported on tax return One of the 180 MAGI beneficiaries - reported self-employment income, DOM did not request a tax return DOM Does Not Concur. OSA compared eligibility data to state income tax returns. DOM is prohibited from accessing state income tax records per Mississippi Code Annotated 27-3-73 and currently, is not allowed to have access to federal income tax records. For eligibility, DOM asserts compliance with the CMS-approved state plan. During the audit period, the state used the CMS MAGI Based Verification plan to confirm income reports using all available electronic data sources according to CMS's reasonable compatibility standard. DOM must accept applicant information and use CMS-approved verification methods to check its accuracy. If self-employment income is not reported and DOM's tools do not detect it, DOM has met eligibility and compliance standards set by CMS. In addition, tax returns are considered outdated and not relevant to DOM. Six of the 180 MAGI beneficiaries - income was not verified through Mississippi Department of Employment Security DOM Partially Concurs. Four beneficiaries' income was not verified through Mississippi Department of Employment Security (MDES). DOM requested MDES on the identified beneficiaries and found no new information that would have affected the eligibility decision. DOM does not concur with two of the findings as MDES was requested on those beneficiaries. Each finding will be reviewed with the individual team members and additional communication has been provided to all Eligibility Team Members. Twelve of the 300 beneficiaries - the beneficiary's case file did not contain a completed application. DOM Concurs. DOM was unable to locate and provide the auditors the original application for the twelve beneficiaries. These documents do not impact the redetermination of eligibility. All redetermination decisions have been verified as accurate. Six of the 300 beneficiaries - DOM could not provide a case file. DOM Concurs. DOM was unable to locate and provide the auditors the case files for six beneficiaries. These documents do not impact the redetermination of eligibility. All redetermination decisions have been verified as accurate. One ABD beneficiary - resources were not verified through AVS at the time of redetermination. DOM Concurs. DOM has since requested AVS records for the beneficiary in question. No bank accounts were found, which indicates there was no impact to eligibility. The Eligibility Team Member will be coached to ensure appropriate processes are followed for all future cases. One hundred thirty-five beneficiaries were not included on all of the required quarterly Public Assistance Reporting Information System (PARIS) file transmissions for fiscal year 2024. DOM Partially Concurs. DOM does not concur with a number of these findings as they were appropriately absent from the PARIS request file because they were in a denied status, had retroactive coverage, or was absent due to the timing of the case approval. DOM concurs with some of the findings. Findings related to COE 29 - Family Planning were addressed in late 2023, which was after the approval of these cases. This issue was resolved in late 2023. There were findings that occurred due to the timing of the PARIS file. DOM has submitted a change request to submit the PARIS file based on the run date not based on the end of the previous month. All previously missed members were added to the 11/1/2025 PARIS outgoing data file, and this report was provided to the auditors. No eligibility decisions were affected by the 11/1/2025 returned PARIS file. DOM Corrective Action Plan: a. DOM submitted a change request to submit the PARIS file based on the eligibility end date of the previous quarter rather than the actual run date. This has been completed. All individual issues identified will be reviewed with the appropriate team member. b. Brian Whitmire c. March 31, 2026

View Audit 400294

Finding 1210992 (2024-017)

Material Weakness 2024

State of Mississippi

MS

Special Tests & Provisions Student Financial Aid Allowable Costs / Cost Principles

Rndlng 2024-017: Spedal Tests and Provisions Significant Defldency In Internal Control over Compliance Crit eria: Per 45 CFR 1356.2l (ml(l ), in meeting the requirements of section 47l(a)(ll) of the Act, the tilie IV·E agency must review at reasonable, specifi c, tim e-limi tedperiods, to be establi...

Rndlng 2024-017: Spedal Tests and Provisions Significant Defldency In Internal Control over Compliance Crit eria: Per 45 CFR 1356.2l (ml(l ), in meeting the requirements of section 47l(a)(ll) of the Act, the tilie IV·E agency must review at reasonable, specifi c, tim e-limi tedperiods, to be established by the agency, the amount of the payments made for foster care maint enance to assure their continued appropriateness , and that the amount made to a licensed or approved relative or kinship foster famil y home is the same as th e amount that would have been made if the child was placed in a licensed or appr oved non-relative foster family home. Based on the Olicia Y. Lawsuit' s Mi ssissippi Sett.lem ent Agreement and Reform Plan, MOCPS is requ ired to review and publi sh u pdated! foster boardpayment rates every two years. Per 45 CFR 75.303(a), non-Federal entities expending HHS awards must establish and maintain effective internal contro ls over comp liance with Federal states, regulations, and the terms and conditions of the Federal award. Condit ion: Our audit procedures over foster care board payments disclosed that the approved payment board rates were unattai nable . The rates had not been updated from the rate approved in 2019 and no documentation could be provided for the required biannual review. Furt her, therate applied for children aged 0- 8 were not the most recent approved rates resulting in underpayments to foster families. Perspective: Below are the exceptions noted in our testing of foster care board payments for proper allocation of the rates and their approval. The samples were not statistically valid. • One of tenrate categories did not have the proper rateappliedbased on provided board rates resulting in twenty-six of forty sample payment Items being underpaid. • MDCPS did not maintain adequate documentation for the required rate review. Personnel Responsible for Corrective Action: Name: A/asha King Title: Grants Accounting Team Lead Email: Aiasha.King@mdcps.ms.gov Phone Number: 601-359-4016 Co rr ective Acti on Plan: Prior to lhe Single Audit, MDCPS im plemented the Foster Board Payment Review Standard Operating Proce dure (2.15.9.1) to ensure payment rates are verified and approved prior to issuan ce. Annual reviews of board payment rates will be conducted to ensure alignment with approved rates. Antldpatecl Completion Date: Completed as of March 19, 2026.

View Audit 400294

Finding 1210991 (2024-016)

Material Weakness 2024

State of Mississippi

MS

Student Financial Aid Eligibility Significant Deficiency

Finding 2024 - 016: Ellglblllty Significant Defldency In Internal Control Over Compliance Criteria: Per 45 CFR 75.1356.21, .22 and .30, a title IV-E agency must determine eligibility of foster homes and foster children prior to providing foster care maintenance payments. Per 45 CFR 7S. 303(a), non-F...

Finding 2024 - 016: Ellglblllty Significant Defldency In Internal Control Over Compliance Criteria: Per 45 CFR 75.1356.21, .22 and .30, a title IV-E agency must determine eligibility of foster homes and foster children prior to providing foster care maintenance payments. Per 45 CFR 7S. 303(a), non-Federal entities expending HHS awards must establish and maintai n effective inte rnal contro ls over compliance with Federal states, regulat ions, and the terms and conditions of the Federal award. MDCPS policies and procedures require a two-level approval for child eligibility determinations . A Social Worker comp letes an eligibility packet for each child and signs of f before submitting the eligibility packet to the Eligibility department. An Eli gibility Worker reviews and approves the eligibility packets prior to submitt ingthe packet for the El i gibility Supervisor's review. The Eli gibility Supervisor makes the necessary adjustments prior to final approval. Condition: Our audit procedures over eligibility packets disclosed a lack of approval from the Social Worker and second-level approval from the Eligibility Supervisor. Perspective: Below are the exceptions noted in our testing of eligibility for proper approval of eligibility packets. The sample was not statistically valid. • Eleven of forty sample items did not have proper Social Worker sign off. • Twenty-eight of forty sample had only one level of approval documented. All eligibility determinations included at least one level of approval, but MCOPS's policies were not implemented consistently. Personnel Responsib le for Corrective Action: Name: Kristi Plotner Title: Deputy Commissioner of Care Management Email : Kristi .Pl otner@md cps.ms.gov Phone Number: 769-352-5532 Corrective Action Plan: MDCPS will enforce our policy requiring approval of eligibility packets to ensure all eligibility packets are complete and accurate. The Agency is also evaluating its existing policy to strengthen internal controls while improving operational efficiency. As part of this effort, we are reviewing eligibility determination procedures to determine whether to move to a single level of approval model. The objective is to ensure that eligibility determinations remain accurate, well-documented, and compliant with federal requirements, while aligning internal processes with best practices in risk based control design. Antidpated Completion Date: Policy enforcement completed as of March 31, 2026 Agency review of eligibility determination procedures to be completed as of Juty 1, 2027. Agency will continue to follow current policy in effect.

View Audit 400294

Finding 1210990 (2024-015)

Material Weakness 2024

State of Mississippi

MS

Allowable Costs / Cost Principles Student Financial Aid Significant Deficiency

Finding 2024- 015: Allowable Costs/ Cost Principle Signifi cant Deficiency In Internal Contro l Over Compliance Criteria: Per 45 CFR 1355.57(d), a title N·E agency must allocate project costs in accordance with applicab le HHS regulations and other guidance. Per 45 CFR 75.303(a), non-Federal entitie...

Finding 2024- 015: Allowable Costs/ Cost Principle Signifi cant Deficiency In Internal Contro l Over Compliance Criteria: Per 45 CFR 1355.57(d), a title N·E agency must allocate project costs in accordance with applicab le HHS regulations and other guidance. Per 45 CFR 75.303(a), non-Federal entities expending HHS awards must establish and maintain effective internal con trols over compliance with Federal sta tes, regu lations, and the terms and conditionsof the Federal award. Condition: Our audit procedures over administrative services disclosed that MDCPS lacked proper policies and procedures over data editing or modification of the cost allocation system. Perspe ctive: Per discussion with management, it was determined that no formal policies and procedures were established for data editing or modifications. Personnel Responsible for Corrective Action : Name: Christopher Roy Title : Deputy Director to the CFO Email: Christopher.Roy@mdcps.ms.gov Phone Number: 601-359-4043 Corrective Action Plan: MDCPS Is strengthening segregation of duties within the Cap Plus system by limiting administrative privileges and ensuring supervisory approval is documented for all cost allocation changes. AntJdpated Completion Date: Permissions were corrected and completed as of March 31, 2026. Documented process and policy anticipated completed May 30, 2026.

View Audit 400294

Finding 1210989 (2024-014)

Material Weakness 2024

State of Mississippi

MS

Allowable Costs / Cost Principles Student Financial Aid Significant Deficiency

Finding 2024 - 014: Allowable Costs/ Cost Prlnclple Significant Defldency In Internal Control Over Compliance Criteria: Per 45 CFR 1355.57(d), a title IV-E agency must allocate project costs in accordance with applicable HHS regulati ons and other guidance. Per 45 CFR 75.303(a), non-Federal entities...

Finding 2024 - 014: Allowable Costs/ Cost Prlnclple Significant Defldency In Internal Control Over Compliance Criteria: Per 45 CFR 1355.57(d), a title IV-E agency must allocate project costs in accordance with applicable HHS regulati ons and other guidance. Per 45 CFR 75.303(a), non-Federal entities expending HHS awards must establish and maintain effective internal controls over compliance with Federal states, regulations, and the terms and conditions of the Federal award. Condition: Our audit procedures over administrative services disclosed that MDCPS lacked proper controls over employee training costs expended through a specific vendor. Perspective: Below are the exceptions noted in our testing of administrat ive services for appropriate review over cost allocation . The samples were not stat ist ically valid. One hundred percent of the costs charged for employeetraining using a specific vendor (four transactions) were te.ste d, and four out of four transactions lacked appro priate review. Personnel Responsible for Corrective Action: Name: Christopher Ray Title : Depuly to 1he Chief Financial Officer Email: christoher.Roy@mdcps.ms.gov Phone Number: 601-359-4043 Corrective Action Plan: MDCPS will enforce our policy requiring approval of the grant management's team's review of appropriate detailed documentation provided by vendor payments. Antldpated Completion Date: Completed as of March 31, 2026.

View Audit 400294

Finding 1210988 (2024-013)

Material Weakness 2024

State of Mississippi

MS

Reporting Student Financial Aid Subrecipient Monitoring

Finding 2024- 013: Terminated User Access Not Removed Timely Significant Deficiency In Internal Control Over Financial Reporting Criteria: Per 45 CFR 75.303(a), non-Federal entitles expendingHHS awards must establish and maintain effective internal controls over compliance with Federal states, regul...

Finding 2024- 013: Terminated User Access Not Removed Timely Significant Deficiency In Internal Control Over Financial Reporting Criteria: Per 45 CFR 75.303(a), non-Federal entitles expendingHHS awards must establish and maintain effective internal controls over compliance with Federal states, regulati ons, and the terms and conditions of the Federal award. Management must mainta in effective user access controls over financia l reporting systems. This Includes promptly removing or disabling access for terminated users and periodically reviewing user access to confirm it aligns with current employment status and job responsibilities. Condition: Testing of IT general controls identifiedinstances where terminated employees' user accounts or financial application access remained active beyond the termination date. MDCPS did not disable terminated user access or remove related application rights in a timely manner. Perspective: During our review of general IT controls, the auditor received a list of terminated employees. Of the 11 employees presented, 6 maintainedaccess to MACWIS after termination.Further, during the performance of a process walkthrough,it was noted that the former chief financial officer was still active in CapPlus and SPHARS. Personnel Responsiblefor Corrective Action: Nome: Shannon Rushton (Employee Seporotlon SOP) Title : Deputy Commissionerof Human Capitol Email: Shannon.Rushton@mdcps.ms.gov Phone Number: 601-359-2696 Name: Christopher Ray (CapPlus User Termination) Title: Deputy Director to the CFO Email: Christopher.Roy@mdcps.ms.gov Phone Number: 601-359-4043 Corrective Action Plan: MDCPS has reinforcedthe EmployeeSeparation St andard Operating Procedure(2.19.2.2) to ensure all system access is removed promptly upon employee separation. Human Resources will notify system administrators immedai tely upon employeetermination, and system administrators will disable all associated application access no later than th e employee's final day of employment. Human Resources will conduct periodic user access reviews to ensure procedures are properly Imp lemented. The Finance Division will ensure the cap Plus software's access and penn1ss1ons are monitored and maintained by the agency with assistance from Interactive Voice Application (IVA). Upon a Cap Plus user's termination , they will be removed from the Cap Plu s software upon their last day of employment or the removal of th eir dutie.s by the agency. These permissions do not require IT or Human Resource control as Cap Plus i s independent of all accounting, payroll, and HR software. Antldpated Completion Date: Empl oyee Separation SOP effectiveas of July 22, 2025. CapP lus user's termination procedures effective as of March 31, 2026.

View Audit 400294

Finding 1210986 (2024-036)

Material Weakness 2024

State of Mississippi

MS

Matching / Level of Effort / Earmarking

EARMARKING ALN Number 93.489, 93.575. and 93.596 2024-036 Federal Award No. 2101MSCCDF Response: MDHS is required to spend 3% of CCDF funding for infant/toddler specific quality improvement activities not included as direct services for child care vouchers. MDHS did not meet the required 3% earmarke...

EARMARKING ALN Number 93.489, 93.575. and 93.596 2024-036 Federal Award No. 2101MSCCDF Response: MDHS is required to spend 3% of CCDF funding for infant/toddler specific quality improvement activities not included as direct services for child care vouchers. MDHS did not meet the required 3% earmarked spending requirement for Federal allocated 2021 CCDF money. MDHS did obligate and liquidate all but $138,239.33 of the required infant/toddler spending requirement. This deficiency was properly reported to the Federal Office of Child Care (OCC) as required on the ACF 696 report submitted December 31, 2023. Furthermore, MOHS staff was fully aware of this situation prior to the findings from the Fiscal Year 20.24 Single Audit being received. To correct this deficiency, MOHS received guidance from the OCC and the Federal Office of Grants Management (OGM) to return the portion of202l CCDF funds not spent on infant/toddler quality activities to OCC. MOHS has complied with the corrective action. Fu11hermore. MOHS has established and is following control processes in place both, within the Division of Early Childhood Care & Development (DECCD) and the MOHS Division of Budgets and Accounting to monitor all spending and meeting required earmarked spending activities. Both Divisions meet regularly to discuss spending and ensure the agency is on track to meet all federally mandated earmarked spending requirements. MDHS has not failed to meet any earmarked spending requirements since the 2021 infant/toddler earmark was not met. Corrective Action Plan: A. Completed: Return portion of unspent Infant/Toddler funding to OCC. 8. Completed: Establish internal monitoring processes for spending funding earmarked for specific activities including all infant/toddler quality improvement activities. C. Completed: DECCD and the MOHS Division of Budgets and Accounting conduct regular meetings to ensure the agency is on track with spending of all earmarked funds.

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