Corrective Action Plans

Finding 530291 (2024-003)

Significant Deficiency 2024

IN

Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles § 200.208 § 200.303 § 200.403

FINDING 2024-003 Finding Subject: Special Education Cluster (IDEA) - Earmarking Contact Person Responsible for Corrective Action: Robert Glover Jr. Contact Phone Number: (219) 945-0250 Contact Email Address: rglover@hobart.k12.in.us Views of Responsible Officials: We concur with the finding. Descrip...

FINDING 2024-003 Finding Subject: Special Education Cluster (IDEA) - Earmarking Contact Person Responsible for Corrective Action: Robert Glover Jr. Contact Phone Number: (219) 945-0250 Contact Email Address: rglover@hobart.k12.in.us Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: As a member of the Northwest Indiana Special Education Cooperative (NISEC), School City of Hobart reported their proportionate share based on a percentage of expenditures and have had successful audits in doing so. When Hobart was notified that this process was no longer acceptable, we immediately implemented an internal control process with NISEC which included detailed reporting of staff work hours for nonpublic schools related to only our school corporation. The report is then reviewed and signed by the NISEC staff working for the nonpublic school and their supervisor. The employee detailed time and effort report is then provided to the NISEC finance department for a second review and signature before being provided to payroll. NISEC payroll then charges the proportionate share to the IDEA Part B grant in the payroll system bi-weekly based on the time and effort report pertinent to just School City of Hobart Non-public schools. The time and effort reports are then used to submit the reimbursement request to the Department of Education for Hobart’s proportionate share. Anticipated Completion Date: 4/30/2025

View Audit 348381

Finding 530275 (2024-001)

Material Weakness 2024

Richmond Community Schools

IN

Internal Control / Segregation of Duties Material Weakness Reporting § 200.302 § 200.303 § 200.328

Future reporting of ESSR information will be noted wherever possible either in written notation or email format to document who worked on and reviewed reporting information and submissions. We will attempt to take screenshots of any forms that are not available for printing

View Audit 348364

Finding 530271 (2024-001)

Significant Deficiency 2024

Olivet Nazarene University

IL

Reporting Matching / Level of Effort / Earmarking Student Financial Aid § 200.303

The University understands the importance of timely R2T4 calculations. The committee review of all R2T4’s every other Wednesday did not properly catch the mistake in the two R2T4’s that were late. Even though the original calculations were done on-time, the committee did not meet before the campus c...

The University understands the importance of timely R2T4 calculations. The committee review of all R2T4’s every other Wednesday did not properly catch the mistake in the two R2T4’s that were late. Even though the original calculations were done on-time, the committee did not meet before the campus closed for the two-week Christmas/New Year’s break, due to several of the members having been away from the campus while traveling. As a result, when the committee met in January, they found an error in the denominator calculation. It was returned to the processor to correct the dates and re-calculate, and when the committee met again both were corrected. However, this caused the process to stretch past the 45-day requirement. While this indicates that the committee reviews and corrects R2T4’s properly, this certainly caused these two to be late. The University will change the committee meetings to every Wednesday, instead of every other Wednesday. This will shorten the time that any changes/mistakes are recognized and corrected. In addition, if a member is unable to meet, the remaining members will still meet and review all withdrawals. The University believes this will prevent R2T4’s missing the appropriate deadlines established by regulation. This process will begin immediately, and will be the responsibility of the Executive Director of Student Financial Services, Tiffany McCann.

View Audit 348350

Finding 530266 (2024-006)

Significant Deficiency 2024

Salem Community College

NJ

Special Tests & Provisions Student Financial Aid Matching / Level of Effort / Earmarking

Views of Responsible Officials: SCC has taken measures to strengthen internal controls. We have begun running a withdrawn/change report weekly. SCC has improved communication by implementing an email between Registrar and Financial Aid as well as Student Accounts. We have enhanced the process of mon...

Views of Responsible Officials: SCC has taken measures to strengthen internal controls. We have begun running a withdrawn/change report weekly. SCC has improved communication by implementing an email between Registrar and Financial Aid as well as Student Accounts. We have enhanced the process of monitoring the withdrawn students and ensuring the R2T4 calculations and the notification process have all been completed and compliant.

View Audit 348343

Finding 530262 (2024-005)

Significant Deficiency 2024

Salem Community College

NJ

Special Tests & Provisions Student Financial Aid Reporting

Views of Responsible Officials: The College will conduct an audit of status change protocols; reporting procedures to the National Clearinghouse; and pursue National Clearinghouse procedures for uploading to National Student Loans Data System (NSLDS).

View Audit 348343

Finding 530238 (2024-008)

Significant Deficiency 2024

Bloomfield School District

IN

Internal Control / Segregation of Duties Special Tests & Provisions Reporting § 200.303

FINDING 2024-008 - Education Stabilization Fund (ESSER) – Special Tests and Provisions - Wage Rate Requirements Context: For the one project subject to Davis-Bacon requirements, the School Corporation did not obtain the weekly payroll reports certifications from the company that performed renovati...

FINDING 2024-008 - Education Stabilization Fund (ESSER) – Special Tests and Provisions - Wage Rate Requirements Context: For the one project subject to Davis-Bacon requirements, the School Corporation did not obtain the weekly payroll reports certifications from the company that performed renovations on the School Corporation. Therefore, no review was performed to ensure that pay rates complied with the federal wage rate requirements. Additionally, the School Corporation did not have a contract with the company that included the clauses for the federal wage rate requirements. The amount disbursed and reported on the SEFA during the audit period is $64,720. Contact Person Responsible for Corrective Action: Michelle L. Keene Contact Phone Number: (812) 384-4386 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: We will ensure any future federal construction projects comply with the Davis-Bacon requirements. Anticipated Completion Date: Next federally funded construction project.

View Audit 348324

Finding 530235 (2024-006)

Material Weakness 2024

Bloomfield School District

IN

Internal Control / Segregation of Duties Material Weakness Reporting § 200.302 § 200.303 § 200.328

FINDING 2024-006 - Education Stabilization Fund (ESSER) – Reporting Context: The School Corporation was required to submit two Annual Data Reports to the Indiana Department of Education (IDOE) during the audit period to meet federal reporting requirements for ESSER grant awards. We noted that the ...

FINDING 2024-006 - Education Stabilization Fund (ESSER) – Reporting Context: The School Corporation was required to submit two Annual Data Reports to the Indiana Department of Education (IDOE) during the audit period to meet federal reporting requirements for ESSER grant awards. We noted that the ESSER II, and ESSER III amounts reported for the reports covering the FY22 time period ($99,969 and $251,848, respectively) did not agree to the underlying expenditure records ($105,319 and $369,743, respectively, for the period of July 1, 2021 through June 30, 2022). Additionally, we noted that the ESSER II, and ESSER III amounts reported for the reports covering the FY23 time period ($168,087 and $266,122, respectively) did not agree to the underlying expenditure records ($169,046 and $241,329, respectively, for the period of July 1, 2022 through June 30, 2023). We also noted there was no documented, secondary review of the information in the annual data reports by someone other than the preparer. Contact Person Responsible for Corrective Action: Michelle L. Keene Contact Phone Number: (812) 384-4386 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: We will ensure all ESSER reports include accurate information that agree to the underlying disbursement records. Anticipated Completion Date: Next report due to IDOE.

View Audit 348324

Finding 530232 (2024-005)

Material Weakness 2024

Bloomfield School District

IN

School Nutrition Programs Internal Control / Segregation of Duties Eligibility § 200.303

FINDING 2024-005 – Child Nutrition Cluster - Eligibility Context: During sample testing of 60 students for eligibility, we noted 5 instances where there was no documented review by someone other than the individual making the eligibility determination. Additionally, we noted 4 instances where the ...

FINDING 2024-005 – Child Nutrition Cluster - Eligibility Context: During sample testing of 60 students for eligibility, we noted 5 instances where there was no documented review by someone other than the individual making the eligibility determination. Additionally, we noted 4 instances where the School Corporation was unable to provide the application. The issues were isolated to paper applications Contact Person Responsible for Corrective Action: Michelle L. Keene Contact Phone Number: (812) 384-4386 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: The treasurer will formally review a sample of applications and the School Corporation will ensure all supporting applications and reviews are maintained. Anticipated Completion Date: March 2025

View Audit 348324

Finding 530229 (2024-004)

Material Weakness 2024

Bloomfield School District

IN

School Nutrition Programs Internal Control / Segregation of Duties Cash Management § 200.303

FINDING 2024-004 – Child Nutrition Cluster - Reporting Context: We noted that for all sponsor claim reimbursements in a sample of four claims, the sponsor claim reimbursement was prepared without a secondary, documented review before the submission of the claim to ensure the accuracy of the sponsor...

FINDING 2024-004 – Child Nutrition Cluster - Reporting Context: We noted that for all sponsor claim reimbursements in a sample of four claims, the sponsor claim reimbursement was prepared without a secondary, documented review before the submission of the claim to ensure the accuracy of the sponsor claim reimbursement summary. Contact Person Responsible for Corrective Action: Michelle L. Keene Contact Phone Number: (812) 384-4386 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: The treasurer will formally review and document the review of all reimbursement claims Anticipated Completion Date: March 2025

View Audit 348324

Finding 530226 (2024-003)

Material Weakness 2024

Bloomfield School District

IN

Questioned Costs School Nutrition Programs Allowable Costs / Cost Principles § 200.303

FINDING 2024-003 - Child Nutrition Cluster - Activities Allowed or Unallowed, Allowable Costs/Cost Principles Context: During testing we noted the following issues in a sample of forty child nutrition cluster payroll claims: ● 6 of 40 payroll transactions where a timecard was not completed by the ...

FINDING 2024-003 - Child Nutrition Cluster - Activities Allowed or Unallowed, Allowable Costs/Cost Principles Context: During testing we noted the following issues in a sample of forty child nutrition cluster payroll claims: ● 6 of 40 payroll transactions where a timecard was not completed by the employee to validate their hours worked and the time charged to food service. ● 19 of 40 payroll transactions where the School Corporation was unable to provide supporting documentation for approval of the hourly rate paid to employee. The noncompliance was isolated to the payroll periods through August 4, 2023. The School Corporation corrected the issues starting with the next payroll period. Contact Person Responsible for Corrective Action: Michelle L. Keene Contact Phone Number: (812) 384-4386 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: In FY24, the issue was corrected to ensure all employees were only paid for time supported by a time a card and a board approved rate schedule. Anticipated Completion Date: August 19, 2023

View Audit 348324 Questioned Costs: $1

Finding 530207 (2024-003)

Material Weakness 2024

Northeast Dubois County School Corporation

IN

School Nutrition Programs Internal Control / Segregation of Duties Eligibility § 200.303

FINDING 2024-003 Information on the federal program: Subject: Child Nutrition Cluster - Internal Controls Federal Agency: Department of Agriculture Federal Program: School Breakfast Program, National School Lunch Program Assistance Listing Number: 10.553, 10.555 Federal Award Numbers and Years (or...

FINDING 2024-003 Information on the federal program: Subject: Child Nutrition Cluster - Internal Controls Federal Agency: Department of Agriculture Federal Program: School Breakfast Program, National School Lunch Program Assistance Listing Number: 10.553, 10.555 Federal Award Numbers and Years (or Other Identifying Numbers): FY2023, FY2024 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Eligibility Audit Finding: Material Weakness Context: During sample testing of 60 students for eligibility, we noted 14 instances where there was no documented review by someone other than the individual making the eligibility determination. The lack of review was isolated to paper applications. Contact Person Responsible for Corrective Action: Joyce Hulsman Contact Phone Number: 812-678-2781 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: A procedure has been established to ensure dual validation and paper copies are in compliance. Anticipated Completion Date: Already completed.

View Audit 348308

Finding 530204 (2024-003)

Material Weakness 2024

Eastern Greene Schools

IN

Internal Control / Segregation of Duties Material Weakness Reporting § 200.302 § 200.303 § 200.328

Information on the federal program: Subject: Education Stabilization Fund (ESSER) – Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Federal Award Numbers and Years (or Other Identifying Num...

Information on the federal program: Subject: Education Stabilization Fund (ESSER) – Internal Controls Federal Agency: Department of Education Federal Program: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425D, 84.425U Federal Award Numbers and Years (or Other Identifying Numbers): S425D200013, S425D210013, S425U210013 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Reporting Audit Finding: Material Weakness Condition: An effective internal control system was not in place at the School Corporation in order to ensure compliance with requirements related to the grant agreement and the Reporting compliance requirements. Context: The School Corporation was required to submit four Annual Data Reports to the Indiana Department of Education (IDOE) each year during the audit period to meet federal reporting requirements for ESSER grant awards. We noted that the ESSER I, ESSER III and CrossAct amounts reported on the Year 3 report ($3,070, $745,718 and 119 employees respectively) did not agree to the underlying expenditure and employee records ($7,062, $754,729 and 207 employees respectively). Additionally, we noted that the ESSER II, ESSER III and CrossAct amounts reported on the Year 4 report ($452,658, $117,344 and 117 employees respectively) did not agree to the underlying expenditure and employee records ($62,794, $459,556 and 207 employees respectively). Of the eight reports the School Corporation was required to submit during the audit period, auditable evidence of review and approval of these reports was only provided for two. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has prepared a corrective action plan.The Treasurer will work with the Grants Administrator to ensure that submissions are checked by both positions. Files will be kept with all documentation relating to the grant. A better understanding of the grant will result from regular meetings with the Treasurer and Grants Administrator to ensure accuracy. Both positions will sign off prior to submission. Responsible party and timeline for completion: The Corporation Treasurer will be responsible effective immediately.

View Audit 348306

Finding 530192 (2024-001)

Significant Deficiency 2024

City of Paramount

CA

Subrecipient Monitoring Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

The City concurs with the auditor's recommendation and will modify and strengthen its policies and procedures to ensure that the required Uniform Guidance standards are addressed. The City has never had a finding in its Single Audit concerning the Level of Effort requirement. The Finance Department ...

The City concurs with the auditor's recommendation and will modify and strengthen its policies and procedures to ensure that the required Uniform Guidance standards are addressed. The City has never had a finding in its Single Audit concerning the Level of Effort requirement. The Finance Department has drafted a Grant policy that is under review and will be approved administratively by City Manager John Moreno. The Policy instructs City staff members on the grant provisions for grant identification, grant funding analysis, administrative compliance, subrecipient monitoring, documentation, and restrictions. Upon approval, Financial Services Manager Anthony Martinez will inform and train all City staff members involved in the procurement and management of all grants. Within the components of training, City staff members will learn the requirements of the "Level of Effort" in the context of federal grants. Moreover, City staff members will learn how to satisfy and dedicate the Grant Project Manager's total work time toward the grant project while maintaining accurate documentation. In addition, Financial Services Manager Anthony Martinez will train staff in the succession of managing the responsibilities of grants to ensure all obligations are maintained during staff transitions. The Grant policy and internal training is part of a larger effort by the Finance Department to implement an administrative Fiscal Policy Manual and Fiscal Practices Training Group expected by June 30, 2025.

View Audit 348296

Finding 530191 (2024-006)

Material Weakness 2024

Brockton School District

MT

Procurement, Suspension & Debarment Subrecipient Monitoring Matching / Level of Effort / Earmarking § 200.326

The District has created a standard operating procedure document to follow for all construction projects. The District will also share that document with all contractors to help communicate the needs of the District regarding construction projects. If necessary, the District will provide the contr...

The District has created a standard operating procedure document to follow for all construction projects. The District will also share that document with all contractors to help communicate the needs of the District regarding construction projects. If necessary, the District will provide the contractor with training to make sure all payrolls are properly certified and in compliance with applicable law. The District will also create a shared Google document for each construction project to manage the progress and payments.

View Audit 348295

Finding 530178 (2024-029)

Material Weakness 2024

State of Arkansas

AR

Special Tests & Provisions Subrecipient Monitoring Material Weakness

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. CMS approved DHS’s Medicaid State Plan Amendment (SPA) requesting exemption from the RAC requirement. The waiver was approved on February 28, 2025, with an effective date of February 1, 2025. The exemption i...

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. CMS approved DHS’s Medicaid State Plan Amendment (SPA) requesting exemption from the RAC requirement. The waiver was approved on February 28, 2025, with an effective date of February 1, 2025. The exemption is effective for two years from the effective date of the SPA. Anticipated Completion Date: Complete Contact Person: Elizabeth Pitman Director, Division of Medical Services Department of Human Services 700 Main Street Little Rock, AR 72201 (501) 244-3944 Elizabeth.Pitman@dhs.arkansas.gov

View Audit 348267

Finding 530177 (2024-028)

Significant Deficiency 2024

State of Arkansas

AR

Questioned Costs Subrecipient Monitoring Eligibility

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. The first two deficiencies occurred prior to implementation of the agency’s current integrated eligibility system (ARIES). The date of death for the beneficiary did not cross over from the prior eligibility ...

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. The first two deficiencies occurred prior to implementation of the agency’s current integrated eligibility system (ARIES). The date of death for the beneficiary did not cross over from the prior eligibility system to MMIS. The agency has implemented a process to monitor and address when eligibility updates do not cross over successfully from the ARIES system to MMIS. For the second case, the missing documentation was likely the result of a failure to scan or appropriately index the document in the prior eligibility system. The agency will continue its practice of reviewing a sample of eligibility cases for accuracy. For the third case, the coverage did not close properly at the end of the month due to a system defect. The correction for this defect was deployed in ARIES on 3/31/24. Anticipated Completion Date: Complete Contact Person: Mary Franklin Director, Division of County Operations Department of Human Services 700 Main Street Little Rock, AR 72201 (501) 681-8377 Mary.Franklin@dhs.arkansas.gov

View Audit 348267 Questioned Costs: $1

Finding 530176 (2024-027)

Material Weakness 2024

State of Arkansas

AR

Questioned Costs Subrecipient Monitoring Matching / Level of Effort / Earmarking

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. Since June 2023, DYS has made multiple changes to improve monitoring of suspension and reinstatement of Medicaid eligibility for incarcerated juveniles. For juveniles with SSI Medicaid, the Social Security A...

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. Since June 2023, DYS has made multiple changes to improve monitoring of suspension and reinstatement of Medicaid eligibility for incarcerated juveniles. For juveniles with SSI Medicaid, the Social Security Administration (SSA) is responsible for suspending Medicaid coverage. All incarcerations for cases noted in the findings involving SSI Medicaid were reported timely to SSA by the agency. DYS closely monitors these cases and continues to send closure requests to SSA until the cases are closed out. SSI cases account for 76% of the total questioned costs noted in the finding. The Division of Medical Services (DMS) implemented an MMIS change in September 2024 that automatically updates member profiles to accurately reflect incarceration dates. This change will resolve the remaining deficiencies noted in the finding. All payments noted as questioned costs were capitated payments made for the PASSE, Dental Managed Care, and NET programs. The agency currently has a reconciliation process for all three programs that identifies payments made after the member’s incarceration date that should be recouped. Any uncollected overpayments noted in the findings will be recouped as part of the next reconciliation process. Anticipated Completion Date: Complete Contact Person: Elizabeth Pitman Director, Division of Medical Services Department of Human Services 700 Main Street Little Rock, AR 72201 (501) 244-3944 Elizabeth.Pitman@dhs.arkansas.gov

View Audit 348267 Questioned Costs: $1

Finding 530172 (2024-024)

Significant Deficiency 2024

State of Arkansas

AR

Matching / Level of Effort / Earmarking Subrecipient Monitoring

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. DCO has implemented controls that monitor the automated matching process with the Arkansas Department of Health and Arkansas Department of Corrections. These additional controls include a pre-cycle review of...

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. DCO has implemented controls that monitor the automated matching process with the Arkansas Department of Health and Arkansas Department of Corrections. These additional controls include a pre-cycle review of the matching process prior to execution, additional checkpoints during the execution of the matching process, monitoring, validating completion of the matching jobs to check for excepted results, and additional communication and coordination among systems, business teams, and other cabinet agencies. Anticipated Completion Date: Complete Contact Person: Mary Franklin Director, Division of County Operations Department of Human Services 700 Main Street Little Rock, AR 72201 (501) 681-8377 Mary.Franklin@dhs.arkansas.gov

View Audit 348267

Finding 530171 (2024-023)

Significant Deficiency 2024

State of Arkansas

AR

Student Financial Aid Subrecipient Monitoring Allowable Costs / Cost Principles

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. Corrections have been made to the affected quarterly reports for SFY2024. New program codes for Placement and Residential Licensing expenditures were not included in prior reporting for Administrative Costs...

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. Corrections have been made to the affected quarterly reports for SFY2024. New program codes for Placement and Residential Licensing expenditures were not included in prior reporting for Administrative Costs. Documented procedures for quarterly financial reporting will be revised to include more specific instructions for reporting expenditures and additional levels of review prior to report submission. Additional training on completion of quarterly financial reporting is being developed for DCFS Finance and Managerial Accounting-Grants Management staff. Anticipated Completion Date: April 30, 2025 Contact Person: Tiffany Wright Director, Division of Children and Family Services Department of Human Services 700 Main Street Little Rock, AR 72201 (501) 396-6477 Tiffany.Wright@dhs.arkansas.gov

View Audit 348267

Finding 530168 (2024-020)

Material Weakness 2024

State of Arkansas

AR

Reporting Student Financial Aid Subrecipient Monitoring

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. Corrections have been made to the affected quarterly reports for SFY2024. New program codes for Placement and Residential Licensing expenditures were not included in prior reporting for Administrative Costs...

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. Corrections have been made to the affected quarterly reports for SFY2024. New program codes for Placement and Residential Licensing expenditures were not included in prior reporting for Administrative Costs. Documented procedures for quarterly financial reporting will be revised to include more specific instructions for reporting expenditures and additional levels of review prior to report submission. Additional training on completion of quarterly financial reporting is being developed for DCFS Finance and Managerial Accounting-Grants Management staff. Anticipated Completion Date: April 30, 2025 Contact Person: Tiffany Wright Director, Division of Children and Family Services Department of Human Services 700 Main Street Little Rock, AR 72201 (501) 396-6477 Tiffany.Wright@dhs.arkansas.gov

View Audit 348267

Finding 530165 (2024-017)

Significant Deficiency 2024

State of Arkansas

AR

Subrecipient Monitoring Matching / Level of Effort / Earmarking Reporting

Views of Responsible Officials and Planned Corrective Action: Program Year 2024 was an unusual year in that (1) key Agency staff members were on extended leave or resigned, (2) one of the program’s primary consultants took extended leave, and (3) the program experienced a major influx of stimulus fu...

Views of Responsible Officials and Planned Corrective Action: Program Year 2024 was an unusual year in that (1) key Agency staff members were on extended leave or resigned, (2) one of the program’s primary consultants took extended leave, and (3) the program experienced a major influx of stimulus funds through separate awards that required separate management, coordination, and reporting. These exceptional circumstances slowed Agency staff’s ability to follow-up with subrecipients that had not submitted timely and accurate reports; subrecipient reports are necessary to submitting accurate and fully responsive federal reports. To help minimize the likelihood of future late submissions, the following control procedures will be established and implemented: • Prepare and transmit a comprehensive schedule of reports and respective due dates to subrecipients at the beginning of each program year; this schedule will be included in the Program Operations Manual. • Feature reporting and associated compliance requirements as a regular topic during annual training activities • Create a shared electronic, internal Agency calendar with reminders for initial, intermediate, and final due dates for report information • If necessary, upload report information in stages to federal reporting database to ensure submission deadlines are met. • Assign responsibility to a staff member to oversee the data collection process, review collected data for accuracy and consistency and, if necessary, provide technical assistance to subrecipients that need help preparing accurate reporting. Anticipated Completion Date: June 15, 2025 Contact Person: Iris Pennington Home Utilities Assistance Manager Arkansas Department of Energy and Environment 5301 Northshore Drive North Little Rock, AR 72118 (501) 682-0842 Iris.Pennington@arkansas.gov

View Audit 348267

Finding 530161 (2024-013)

Significant Deficiency 2024

State of Arkansas

AR

Subrecipient Monitoring Eligibility Reporting § 200.303

Views of Responsible Officials and Planned Corrective Action: ARS Discussion The Agency acknowledges the lack of adequate internal controls necessary to ensure accurate maintenance of supporting documentation during our migration to our new case management system (CMS). ARS Action Taken The Agency h...

Views of Responsible Officials and Planned Corrective Action: ARS Discussion The Agency acknowledges the lack of adequate internal controls necessary to ensure accurate maintenance of supporting documentation during our migration to our new case management system (CMS). ARS Action Taken The Agency has taken the below steps to mitigate the lack of internal controls regarding supporting documentation, mainly attachments, located in our CMS in the future. • As the transfer of data to our new CMS platform concludes, that impediment has significantly diminished. The Agency has an appropriate method of control in place to detect any case file errors that may occur because of an incomplete retrieval or an insufficient data element input. In both instances, data analyst personnel from Program, Planning, Development and Evaluation (PPD&E) employ RSA’s edit check process that identifies specific errors prior to submission of the RSA 911 report. Those errors are then methodically corrected in our CMS ensuring the RSA 911 report is error free. • In instances where information is miscoded in the client case file, or is missing, the division’s Quality Assurance (QA) team identifies those errors and employes best practice training methods to ensure the case file complies with federal regulations. • Finally, our new CMS data hosted on an AR DIS platform is regularly backed up on a separate server to ensure that if anything were to happen to the primary CMS, we have a back up of all case data, including supporting documentation, and attachments. This data would be able to be accessed as a backup if data in the CMS was compromised in any way. Anticipated Completion Date: Complete Contact Person: Robert Trevino Associate Commissioner of PPD&E Arkansas Rehabilitation Services 1 Commerce Way Little Rock, AR 72202 (501) 296-1604 Robert.Trevino@Arkansas.gov

View Audit 348267

Finding 530160 (2024-012)

Significant Deficiency 2024

State of Arkansas

AR

Reporting Internal Control / Segregation of Duties Subrecipient Monitoring § 200.303

Views of Responsible Officials and Planned Corrective Action: ARS Discussion The Agency acknowledges the failure to adequately submit the RSA-17 report for the quarter ending June 30, 2024, for the federal fiscal year 2023 grant award. ARS Action Taken The Agency has taken the below steps to mitigat...

Views of Responsible Officials and Planned Corrective Action: ARS Discussion The Agency acknowledges the failure to adequately submit the RSA-17 report for the quarter ending June 30, 2024, for the federal fiscal year 2023 grant award. ARS Action Taken The Agency has taken the below steps to mitigate oversight of reporting deadlines and lack of internal controls. • ARS fiscal has hired three additional staff members whose purpose will be in-part to collect, interpret, and submit data with regards to RSA17 reports. • A RSA17 policy was submitted RSA in January 2025. This policy speaks to enhanced ARS internal controls for timeliness of collecting data, and oversight to ensure proper preparation and submission of these federal financial reports moving forward. These include multi personnel responsibility checks for collection at minimum one week prior to report submission with Manager and Deputy Commissioner to ensure data collection and submission are on-time. Anticipated Completion Date: Complete Contact Person: April Cooper Deputy Director of Finance Arkansas Department of Commerce 1 Commerce Way Little Rock, AR 72202 (501) 682-4771 April.Cooper@Arkansas.gov

View Audit 348267

Finding 530155 (2024-007)

Material Weakness 2024

State of Arkansas

AR

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.400 § 200.403

Views of Responsible Officials and Planned Corrective Action: Moving forward the Department will require recipients to provide a list of invoices with the invoice date, period of performance, invoice amount and amount requested/disbursed from ARPA and/or other funding sources to be included with eac...

Views of Responsible Officials and Planned Corrective Action: Moving forward the Department will require recipients to provide a list of invoices with the invoice date, period of performance, invoice amount and amount requested/disbursed from ARPA and/or other funding sources to be included with each disbursement request. Staff training will be modified to ensure staff understand allowable expenditures and period of performance restrictions. Anticipated Completion Date: June 30, 2025 Contact Person: Debby Dickson Water Development Division Manager Arkansas Department of Agriculture-Natural Resources Division 1 Natural Resources Drive Little Rock, AR 72205 (501) 225-1598 Debra.Dickson@agriculture.arkansas.gov

View Audit 348267 Questioned Costs: $1

Finding 530153 (2024-005)

Significant Deficiency 2024

State of Arkansas

AR

Questioned Costs Cash Management Subrecipient Monitoring § 200.303 § 200.400

Views of Responsible Officials and Planned Corrective Action: The Arkansas Department of Education (ADE), Division of Elementary and Secondary Education (DESE), Health and Nutrition Unit (HNU), concur with the finding. The HNU Finance staff implemented procedures for meal claim payment requests whic...

Views of Responsible Officials and Planned Corrective Action: The Arkansas Department of Education (ADE), Division of Elementary and Secondary Education (DESE), Health and Nutrition Unit (HNU), concur with the finding. The HNU Finance staff implemented procedures for meal claim payment requests which include an initial and final review of all requests to be conducted by two (2) staff. The review process includes, but is not limited to, ensuring expenditures are assigned correct codes related to the appropriate funding source within the appropriate grant year, mitigating the Child Nutrition Program (CNP), Child and Adult Care Food Program (CACFP) Sponsor Administrative expenditure errors going forward. When the request is determined to be compliant, the Associate Director of Finance and Training approves payments before being forwarded to the ADE Finance team for payment. Anticipated Completion Date: March 15, 2025 Contact Person: Sheila Chastain Associate Director Arkansas Department of Education, DESE, Nutrition Services #4 Capitol Mall, Box #12 Little Rock, AR 72201 (501) 324-9502 Sheila.Chastain@ade.arkansas.gov Pamela Burton Director Arkansas Department of Education, DESE, Nutrition Services #4 Capitol Mall, Box #19 Little Rock, AR 72201 (501) 320-8978 Pamela.Burton@ade.arkansas.gov

View Audit 348267 Questioned Costs: $1

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