Corrective Action Plans

Finding 565471 (2024-033)

Significant Deficiency 2024

MA

Questioned Costs Special Tests & Provisions Significant Deficiency § 200.303

EXECUTIVE OFFICE OF HEALTH AND HUMAN SERVICES 2024-033 Medicaid Cluster, COVID-19 – Medicaid Cluster - Assistance Listing No. 93.775, 93.777, 93.778 Recommendation: We recommend that the Department enhance its procedures and controls to ensure that the calculation of the federal share of overpayment...

EXECUTIVE OFFICE OF HEALTH AND HUMAN SERVICES 2024-033 Medicaid Cluster, COVID-19 – Medicaid Cluster - Assistance Listing No. 93.775, 93.777, 93.778 Recommendation: We recommend that the Department enhance its procedures and controls to ensure that the calculation of the federal share of overpayments to be returned is accurate and is properly reported on the CMS-64. Action taken in response to finding: In response to the finding, MassHealth will: ▪ Add additional validation checks where possible to flag discrepancies or potential errors. ▪ Continue to automate and improve the importation of data to allow more time for quality control review. ▪ Continue to work with staff and provide additional training and guidance ▪ Continue to work with staff to develop additional check points to ensure the correct federal share is reported and returned. Name(s) of the contact person(s) responsible for corrective action: Janet Chin, Director Federal Revenue Claiming, Title XIX & XXI Planned completion date for corrective action plan: Immediate and ongoing

View Audit 359283 Questioned Costs: $1

Finding 565469 (2024-032)

Material Weakness 2024

Commonwealth of Massachusetts

MA

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

DEPARTMENT OF EARLY EDUCATION AND CARE 2024-032 CCDF Cluster - Assistance Listing No. 93.575, 93.596 Recommendation: We recommend the Department review and enhance procedures and internal controls to ensure that, at the conclusion of fraud investigations, decision letters are issued promptly and tha...

DEPARTMENT OF EARLY EDUCATION AND CARE 2024-032 CCDF Cluster - Assistance Listing No. 93.575, 93.596 Recommendation: We recommend the Department review and enhance procedures and internal controls to ensure that, at the conclusion of fraud investigations, decision letters are issued promptly and that repayments are received timely. Action taken in response to finding: EEC is taking steps to strengthen internal controls related to the fraud investigation process by reviewing and updating procedures to ensure timely issuance of decision letters at the conclusion of investigations. As part of this effort, EEC will assess current response timelines to identify delays and implement improvements. This includes establishing benchmarks for the timely issuance of decision letters and the initiation of repayment processes. In addition, we are implementing enhanced tracking systems to monitor key milestones and ensure timely follow-up. Staff training will be conducted to reinforce procedural expectations around timelines and documentation. These combined efforts will promote consistency, accountability, and improved timeliness. Name(s) of the contact person(s) responsible for corrective action: Tyreese Nicolas, Deputy Commissioner for Family Access and Engagement Planned completion date for corrective action plan: October 1, 2025

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Finding 565467 (2024-031)

Material Weakness 2024

Commonwealth of Massachusetts

MA

Subrecipient Monitoring Material Weakness Reporting § 200.303

DEPARTMENT OF EARLY EDUCATION AND CARE 2024-031 CCDF Cluster - Assistance Listing No. 93.575, 93.596 Recommendation: We recommend the Department develop procedures and internal controls to ensure that all required subawards are reported timely and accurately to FSRS no later than the end of the mont...

DEPARTMENT OF EARLY EDUCATION AND CARE 2024-031 CCDF Cluster - Assistance Listing No. 93.575, 93.596 Recommendation: We recommend the Department develop procedures and internal controls to ensure that all required subawards are reported timely and accurately to FSRS no later than the end of the month following the month of issuance of each subaward. Action taken in response to finding: EEC developed and implemented new policies and procedures that detail the FFATA reporting requirements, notification process, and control environment, including the data sources, in September of 2022. EEC did not implement the procedures necessary to ensure the report is submitted to SAM.gov in a timely manner as required. Applicable Accounting, Contracts, and Budget staff will be trained on these policies and procedures. Name(s) of the contact person(s) responsible for corrective action: Eric Hansson, Chief Financial Officer/CFO and Acting Chief Operating Officer/COO Planned completion date for corrective action plan: October 1, 2025

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Finding 565465 (2024-029)

Significant Deficiency 2024

Commonwealth of Massachusetts

MA

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

EXECUTIVE OFFICE OF HOUSING AND LIVABLE COMMUNITIES 2024-029 Low-Income Home Energy Assistance - Assistance Listing No. 93.568 Recommendation: We recommend that the Department review and enhance its procedures and internal controls to ensure that special reports are submitted accurately, and that th...

EXECUTIVE OFFICE OF HOUSING AND LIVABLE COMMUNITIES 2024-029 Low-Income Home Energy Assistance - Assistance Listing No. 93.568 Recommendation: We recommend that the Department review and enhance its procedures and internal controls to ensure that special reports are submitted accurately, and that the information reported agrees to supporting documentation. Action taken in response to finding: The Executive Office of Housing and Livable Communities (EOHLC), which was formerly the Department of Housing and Community Development (DHCD or Department), has implemented the recommended measures and will continue them going forward. EOHLC has reviewed their policies and procedures for LIHEAP reporting requirements and is committed to making any enhancements that are necessary to ensure the reports are submitted timely and accurately, and that the information reported agrees to the supporting documentation. In addition, EOHLC Management or their designees will review deadlines and other requirements for LIHEAP reports on an ongoing basis. Name(s) of the contact person(s) responsible for corrective action: Edward Kiely Planned completion date for corrective action plan: October 1, 2024

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Finding 565464 (2024-028)

Significant Deficiency 2024

Commonwealth of Massachusetts

MA

Subrecipient Monitoring Reporting Significant Deficiency § 200.303

EXECUTIVE OFFICE OF HOUSING AND LIVABLE COMMUNITIES 2024-028 Low-Income Home Energy Assistance - Assistance Listing No. 93.568 Recommendation: We recommend the Department review and enhance its procedures and internal controls to ensure that all required subawards are reported timely and accurately ...

EXECUTIVE OFFICE OF HOUSING AND LIVABLE COMMUNITIES 2024-028 Low-Income Home Energy Assistance - Assistance Listing No. 93.568 Recommendation: We recommend the Department review and enhance its procedures and internal controls to ensure that all required subawards are reported timely and accurately to FSRS no later than the end of the month following the month of issuance of each subaward. Action taken in response to finding: The Executive Office of Housing and Livable Communities (EOHLC), which was formerly the Department of Housing and Community Development (DHCD or Department), has implemented the recommended measures and will continue them going forward. As a result of the original finding, 2022-018, EOHLC had previously put policies and procedures in place to ensure that all required subawards are reported timely and accurately to FSRS, and the Federal Funding Accountability and Transparency Act (FFATA) reports are reported timely and accurately. EOHLC’s FFATA report procedure was developed in September of 2023 and submitted on November 20, 2023. EOHLC notes that policies and procedures have already been put in place to remedy this issue. Name(s) of the contact person(s) responsible for corrective action: Frederique P. Phanor Planned completion date for corrective action plan: FFATA report procedure developed September 12, 2023 and LIHEAP submitted November 20, 2023

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Finding 565463 (2024-027)

Significant Deficiency 2024

Commonwealth of Massachusetts

MA

Eligibility Special Tests & Provisions Significant Deficiency § 200.303

DEPARTMENT OF TRANSITIONAL ASSISTANCE 2024-027 Temporary Assistance for Needy Families (TANF) - Assistance Listing No. 93.558 Recommendation: We recommend the Department evaluate its procedures and internal controls to ensure that information used to verify work participation is complete, accurate, ...

DEPARTMENT OF TRANSITIONAL ASSISTANCE 2024-027 Temporary Assistance for Needy Families (TANF) - Assistance Listing No. 93.558 Recommendation: We recommend the Department evaluate its procedures and internal controls to ensure that information used to verify work participation is complete, accurate, and agrees with supporting documentation. Action taken in response to finding: A. Program requirements on work hours self-attestation for self-employed The Department will work on guidance that complies with the federal rules and develop instructions for staff on how to determine hours of work for those who are self-employed. B. Accuracy of reported hours of work Quality Control (QC) managers will initial the unsubsidized hours field and the corresponding supporting documentation to indicate that a thorough review has been completed. The current procedure requires QC managers to review all cases, which 250 to 300 cases per month. Further, QC staff will also be reminded of the importance of accurately coding unsubsidized employment hours and will be instructed to double-check their work to minimize errors and maintain data integrity. QC management maintains the practice of reviewing a random 20% sample of all unsubsidized employment hours coded prior to quarterly transmission to ACF, to ensure ongoing accuracy and compliance. QC management will work with IT to explore the possibility of developing a management report or error report using backend BEACON data that would show specifics of errors corrected by QC managers or QC management to assist management in providing targeted training to QC staff. Name(s) of the contact person(s) responsible for corrective action: Megan Nicholls, Associate Commissioner of Family and Economic Assistance Carlos Rosado, Director of Quality Control | Quality Management Planned completion date for corrective action plan: September 30, 2025 – Issue instruction and guidance that complies with the federal rules October 30, 2025 – Implement enhanced procedures accuracy of reported work hours

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Finding 565462 (2024-026)

Significant Deficiency 2024

Commonwealth of Massachusetts

MA

Questioned Costs Special Tests & Provisions Student Financial Aid § 200.303

DEPARTMENT OF TRANSITIONAL ASSISTANCE 2024-026 Temporary Assistance for Needy Families (TANF) - Assistance Listing No. 93.558 Recommendation: We recommend the Department evaluate its procedures and internal controls over Child Support Non-Cooperation to ensure that sanctions are applied timely. Acti...

DEPARTMENT OF TRANSITIONAL ASSISTANCE 2024-026 Temporary Assistance for Needy Families (TANF) - Assistance Listing No. 93.558 Recommendation: We recommend the Department evaluate its procedures and internal controls over Child Support Non-Cooperation to ensure that sanctions are applied timely. Action taken in response to finding: The Department will utilize existing training opportunities, including but not limited to new hire training, monthly supervisor webinars and ad hoc guest training from DOR to address this topic as needed. Further, the Department is working on building out a quality control program on sampling of TAFDC cases in the Quality Management organization. When built out, this program would include a sample review of child support non-cooperative cases to ensure sanctions are applied timely and appropriately. In the interim, ad hoc targeted reviews on this topic will be performed annually at minimum as a compensating control for risk mitigation. Reviews will be performed on a sample basis. Name(s) of the contact person(s) responsible for corrective action: Megan Nicholls, Associate Commissioner of Family and Economic Assistance - Training Lily Kuo, Director of Internal Controls – Ad hoc Targeted Reviews Planned completion date for corrective action plan: September 30, 2025 and forward – Facilitate training March 30, 2026 and forward – Perform ad hoc targeted reviews

View Audit 359283 Questioned Costs: $1

Finding 565461 (2024-025)

Significant Deficiency 2024

Commonwealth of Massachusetts

MA

Matching / Level of Effort / Earmarking Eligibility Reporting § 200.303

DEPARTMENT OF TRANSITIONAL ASSISTANCE 2024-025 Temporary Assistance for Needy Families (TANF) - Assistance Listing No. 93.558 Recommendation: We recommend the Department evaluate its procedures and internal controls over reporting to ensure that reports are supported by documentation and are submitt...

DEPARTMENT OF TRANSITIONAL ASSISTANCE 2024-025 Temporary Assistance for Needy Families (TANF) - Assistance Listing No. 93.558 Recommendation: We recommend the Department evaluate its procedures and internal controls over reporting to ensure that reports are supported by documentation and are submitted timely. Action taken in response to finding: The Department will evaluate, enhance, and document its procedures and internal controls over the ACF-209 reporting to ensure the data in the reports are supported by documentation. Specifically, participants with zero earned income should not have a blank field and the reported unsubsidized hours - Block 43 UnsubEmpHrsc - in BEACON QI and the ACF-209 reports should be supported by BEACON Program, where applicable. Further, the Department will submit the ACF-209 reports timely on a quarterly basis. This includes reviewing and correcting rejected submissions and the errors from the partially accepted submissions by ACF and resubmitting the reports until acceptance by ACF. Name(s) of the contact person(s) responsible for corrective action: Birabwa Kajubi, Associate Commission for Quality Management Roubina Panian, Quality Improvement Director | Quality Management Planned completion date for corrective action plan: October 30, 2025 – Implement enhanced procedures on data accuracy August 14, 2025 and forward – Timely submission of data reports

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Finding 565460 (2024-024)

Significant Deficiency 2024

Commonwealth of Massachusetts

MA

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

DEPARTMENT OF TRANSITIONAL ASSISTANCE 2024-024 Temporary Assistance for Needy Families (TANF) - Assistance Listing No. 93.558 Recommendation: We recommend the Department evaluate its procedures and internal controls over reporting to ensure that reports are submitted timely. Action taken in response...

DEPARTMENT OF TRANSITIONAL ASSISTANCE 2024-024 Temporary Assistance for Needy Families (TANF) - Assistance Listing No. 93.558 Recommendation: We recommend the Department evaluate its procedures and internal controls over reporting to ensure that reports are submitted timely. Action taken in response to finding: Going forward, the new budget director will test her access to the ACF platform in advance of the report due date to mitigate any technical issue in report submission. Name(s) of the contact person(s) responsible for corrective action: Azra Beels, Budget Director | DTA Finance Planned completion date for corrective action plan: Q4 2025 and forward

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Finding 565459 (2024-023)

Significant Deficiency 2024

Commonwealth of Massachusetts

MA

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

DEPARTMENT OF TRANSITIONAL ASSISTANCE 2024-023 COVID-19 - Temporary Assistance for Needy Families (TANF) - Assistance Listing No. 93.558 Recommendation: We recommend the Department evaluate its procedures and internal controls over reporting to ensure that reports are submitted timely. Action taken...

DEPARTMENT OF TRANSITIONAL ASSISTANCE 2024-023 COVID-19 - Temporary Assistance for Needy Families (TANF) - Assistance Listing No. 93.558 Recommendation: We recommend the Department evaluate its procedures and internal controls over reporting to ensure that reports are submitted timely. Action taken in response to finding: Despite the delay in filing FY23, the final report in FY24 was submitted on time and the reporting requirements have now ended. Name(s) of the contact person(s) responsible for corrective action: Easton Hill, Director of Federal Revenue - TANF/SNAP | EOHHS OFFR Planned completion date for corrective action plan: Complete

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Finding 565455 (2024-021)

Material Weakness 2024

Commonwealth of Massachusetts

MA

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

DEPARTMENT OF PUBLIC HEALTH 2024-021 Epidemiology and Laboratory Capacity for Infectious Diseases COVID-19 – Epidemiology and Laboratory Capacity for Infectious Diseases - Assistance Listing No. 93.323 Recommendation: We recommend that the Department review and enhance its procedures and internal co...

DEPARTMENT OF PUBLIC HEALTH 2024-021 Epidemiology and Laboratory Capacity for Infectious Diseases COVID-19 – Epidemiology and Laboratory Capacity for Infectious Diseases - Assistance Listing No. 93.323 Recommendation: We recommend that the Department review and enhance its procedures and internal controls to ensure that performance reports are submitted timely and that the review and approval process of financial and performance reports is documented prior to submission. Action taken in response to finding: Fiscal reporting will consist of email communication from the Director of Administration and Finance to the Project Director requesting the Project Director to review both the quarterly report in the ELC’s CAMP portal and the attached spreadsheet backup attached to the email communication that supports the financial data in ELC’s CAMP portal. The Project Director will review the spreadsheet and financial data in ELC CAMP. If the Project Director, approves, the PD will email the Director of Administration and Finance stating that she has reviewed and approved the data in the spreadsheet and in the ELC CAMP portal. If the PD does not approve, the PD will communicate this through email to the Director of Administration and Finance with what the issues are and ask the Director of Administration and Finance to correct and resubmit the information to PD. The same process as noted above will be followed until it is approved by the PD. Programmatic performance reporting with be entered into the ELC CAMP Portal by ELC multiple programmatic leads for various ELC sections. Once completed, the multiple programmatic leads will email the Project Director to review. The Project Director will review the programmatic data in the ELC CAMP portal. The Project Director will send multiple programmatic leads and email with her approval and ask them to submit his/her section in ELC CAMP. If the Project Director finds errors, she will email the programmatic lead(s) identifying the error and ask the programmatic lead(s) to correct. The same process noted above would continue until the Project Director approves the programmatic performance report. Name(s) of the contact person(s) responsible for corrective action: Cheryl Bernard-Dort, Director of Administration and Finance, BIDLS ; Natalie Morgenstern, Project Director, ELC leads for various ELC sections for performance reports (multiple staff) Planned completion date for corrective action plan: 8/31/2025

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Finding 565453 (2024-020)

Material Weakness 2024

Commonwealth of Massachusetts

MA

Subrecipient Monitoring Material Weakness Reporting § 200.303

DEPARTMENT OF PUBLIC HEALTH 2024-020 Epidemiology and Laboratory Capacity for Infectious Diseases COVID-19 – Epidemiology and Laboratory Capacity for Infectious Diseases - Assistance Listing No. 93.323 Recommendation: We recommend the Department establish procedures and internal controls to ensure t...

DEPARTMENT OF PUBLIC HEALTH 2024-020 Epidemiology and Laboratory Capacity for Infectious Diseases COVID-19 – Epidemiology and Laboratory Capacity for Infectious Diseases - Assistance Listing No. 93.323 Recommendation: We recommend the Department establish procedures and internal controls to ensure that all required subawards are reported timely and accurately to FSRS no later than the end of the month following the month of issuance of each subaward. Action taken in response to finding: The Bureau of Infectious Disease and Laboratory Sciences (BIDLS) will put in place starting August 1, 2025 a process to review obligations for subawards under Epidemiology and Laboratory Capacity for Infectious Diseases COVID-19 – Epidemiology and Laboratory Capacity for Infectious Diseases - Assistance Listing No. 93.323, to identify subawards that fall under the rules set forth by Federal Funding Accountability and Transparency Act (FFATA) and report the appropriate obligations to FSRS according to the above-mentioned recommendations. Name(s) of the contact person(s) responsible for corrective action: Cheryl Bernard-Dort, Director of Administration and Finance, BIDLS Planned completion date for corrective action plan: 9/30/25

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Finding 565451 (2024-019)

Material Weakness 2024

Commonwealth of Massachusetts

MA

Subrecipient Monitoring Material Weakness Reporting § 200.303

DEPARTMENT OF PUBLIC HEALTH 2024-019 Immunization Cooperative Agreements, COVID-19 - Immunization Cooperative Agreements - Assistance Listing No. 93.268 Recommendation: We recommend the Department complete implementation of its corrective action plan from the prior audit. It should establish procedu...

DEPARTMENT OF PUBLIC HEALTH 2024-019 Immunization Cooperative Agreements, COVID-19 - Immunization Cooperative Agreements - Assistance Listing No. 93.268 Recommendation: We recommend the Department complete implementation of its corrective action plan from the prior audit. It should establish procedures and internal controls to ensure that all required subawards are reported timely and accurately to the FSRS no later than the end of the month following the month of issuance of each subaward. Action taken in response to finding: The Bureau of Infectious Disease and Laboratory Sciences (BIDLS) will put in place starting August 1, 2025 a process to review obligations for subawards under Immunization, Assistance Listing No. 93.268 to identify subawards that fall under the rules set forth by Federal Funding Accountability and Transparency Act (FFATA) and report the appropriate obligations to FSRS according to the above-mentioned recommendations. Name(s) of the contact person(s) responsible for corrective action: Cheryl Bernard-Dort, Director of Administration and Finance, BIDLS Planned completion date for corrective action plan: 9/30/25

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Finding 565445 (2024-017)

Significant Deficiency 2024

Commonwealth of Massachusetts

MA

Matching / Level of Effort / Earmarking § 200.303

EXECUTIVE OFFICE OF ELDER AFFAIRS 2024-017 Aging Cluster - Assistance Listing No. 93.044, 93.045, 93.053 Recommendation: The Department should review and enhance internal controls and procedures to ensure that the earmark calculation is reviewed and approved by program management. Action taken in ...

EXECUTIVE OFFICE OF ELDER AFFAIRS 2024-017 Aging Cluster - Assistance Listing No. 93.044, 93.045, 93.053 Recommendation: The Department should review and enhance internal controls and procedures to ensure that the earmark calculation is reviewed and approved by program management. Action taken in response to finding: AGE will implement a review and sign off form for the earmark calculation when it is developed annually. This requirement will be added to AGE’s internal control plan, specifically the section on federal grants management and compliance. Name(s) of the contact person(s) responsible for corrective action: Sheila Tunney, CFO Planned completion date for corrective action plan: 9/30/2025

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Finding 565442 (2024-016)

Material Weakness 2024

Commonwealth of Massachusetts

MA

Subrecipient Monitoring Material Weakness Reporting § 200.303

EXECUTIVE OFFICE OF ELDER AFFAIRS 2024-016 Aging Cluster - Assistance Listing No. 93.044, 93.045, 93.053 Recommendation: We recommend the Department develop procedures and internal controls to ensure that all required subawards are reported timely and accurately to FSRS no later than the end of the...

EXECUTIVE OFFICE OF ELDER AFFAIRS 2024-016 Aging Cluster - Assistance Listing No. 93.044, 93.045, 93.053 Recommendation: We recommend the Department develop procedures and internal controls to ensure that all required subawards are reported timely and accurately to FSRS no later than the end of the month following the month of issuance of each subaward. Action taken in response to finding: AGE has developed a form to attach to all relevant contracts to capture required reporting requirements and will implement a calendar of reporting deadlines to the AGE internal control plan, specifically the section regarding federal grants management. Name(s) of the contact person(s) responsible for corrective action: Sheila Tunney, CFO Planned completion date for corrective action plan: 9/30/2025

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Finding 565439 (2024-015)

Significant Deficiency 2024

Commonwealth of Massachusetts

MA

Matching / Level of Effort / Earmarking § 200.303

EXECUTIVE OFFICE OF LABOR AND WORKFORCE DEVELOPMENT 2024-015 WIOA Cluster - Assistance Listing No. 17.258, 17.259, 17.278 Recommendation: We recommend the Department review and enhance its controls over reporting earmarking requirements to ensure that reports are accurate and compliant, and that doc...

EXECUTIVE OFFICE OF LABOR AND WORKFORCE DEVELOPMENT 2024-015 WIOA Cluster - Assistance Listing No. 17.258, 17.259, 17.278 Recommendation: We recommend the Department review and enhance its controls over reporting earmarking requirements to ensure that reports are accurate and compliant, and that documentation is maintained and readily available for audit. Action taken in response to finding: Beginning in FY26, phase codes associated with federal grant activity will be further disaggregated and mapped in MMARS screen BQ87 (Federal Grant Phase Budget Status). This enhancement will improve the accuracy and clarity of budget-to-actual comparisons by providing a clearer breakout of expenditures by phase. It will also strengthen internal controls and facilitate better alignment between MMARS, Finance Data Mart, and federal reporting requirements. Finance and DCS will continue to conduct joint reviews of the earmarks each quarter to ensure accuracy and allowability. Name(s) of the contact person(s) responsible for corrective action: Sarah Shannon, Ken Luke, Dave Manning Planned completion date for corrective action plan: 12/31/2025

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Finding 565430 (2024-012)

Significant Deficiency 2024

Commonwealth of Massachusetts

MA

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

EXECUTIVE OFFICE OF LABOR AND WORKFORCE DEVELOPMENT 2024-012 WIOA Cluster - Assistance Listing No. 17.258, 17.259, 17.278 Recommendation: We recommend the Agency review and enhance procedures and controls to ensure that costs charged to the program are allowable, approved, and accounted for properly...

EXECUTIVE OFFICE OF LABOR AND WORKFORCE DEVELOPMENT 2024-012 WIOA Cluster - Assistance Listing No. 17.258, 17.259, 17.278 Recommendation: We recommend the Agency review and enhance procedures and controls to ensure that costs charged to the program are allowable, approved, and accounted for properly in the Commonwealth’s accounting system. Action taken in response to finding: During the review, supporting documentation for certain expenditure adjustments (EX) could not be located. Since then, the department has taken steps to strengthen internal controls and improve documentation practices. Under new management, enhanced oversight procedures have been implemented, requiring all expenditure adjustments to undergo review and approval by multiple levels of management and staff. To ensure transparency and audit readiness, all supporting documentation is now stored in a centralized and accessible SharePoint repository. Additionally, revised procedures are being integrated into the department's standard operating protocols to support ongoing monitoring. These updates are designed to ensure that all future adjustments are properly documented, allowable under applicable federal regulations, and readily available for review. Name(s) of the contact person(s) responsible for corrective action: Ken Luke Planned completion date for corrective action plan: 9/30/2025

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Finding 565427 (2024-011)

Material Weakness 2024

Commonwealth of Massachusetts

MA

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

EXECUTIVE OFFICE OF LABOR AND WORKFORCE DEVELOPMENT 2024-011 WIOA Cluster - Assistance Listing No. 17.258, 17.259, 17.278 Recommendation: The Department should review its procedures to ensure that ETA 9130 reports are accurate and agree with supporting documentation. We further recommend that intern...

EXECUTIVE OFFICE OF LABOR AND WORKFORCE DEVELOPMENT 2024-011 WIOA Cluster - Assistance Listing No. 17.258, 17.259, 17.278 Recommendation: The Department should review its procedures to ensure that ETA 9130 reports are accurate and agree with supporting documentation. We further recommend that internal controls are enhanced to ensure that reports are reviewed for accuracy prior to submission. Action taken in response to finding: This issue occurred during a period when the preparation and submission of the ETA 9130 reports were handled by a single staff member without peer review. The lack of internal checks and collaborative review contributed to the inaccuracies. With new management and restructured team now in place, we have implemented and strengthened review processes. Moving forward, ETA 9130 reports will be jointly reviewed by Finance and program staff before submission and certification. Supporting documentation will be cross-checked for accuracy and completeness, and all relevant files will be maintained in a centralized, shared folder to ensure transparency and accountability. This multi-layered review and documentation process will be incorporated into standard quarterly reporting procedures to prevent future discrepancies and ensure federal reporting integrity. Name(s) of the contact person(s) responsible for corrective action: Sarah Shannon, Ken Luke, Vina Yung Planned completion date for corrective action plan: 8/30/2025

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Finding 565424 (2024-010)

Material Weakness 2024

Commonwealth of Massachusetts

MA

Subrecipient Monitoring Material Weakness Reporting § 200.303

EXECUTIVE OFFICE OF LABOR AND WORKFORCE DEVELOPMENT 2024-010 WIOA Cluster - Assistance Listing No. 17.258, 17.259, 17.278 Recommendation: The Department should implement procedures and internal controls to ensure that all required subawards are reviewed, approved and subsequently reported timely to ...

EXECUTIVE OFFICE OF LABOR AND WORKFORCE DEVELOPMENT 2024-010 WIOA Cluster - Assistance Listing No. 17.258, 17.259, 17.278 Recommendation: The Department should implement procedures and internal controls to ensure that all required subawards are reviewed, approved and subsequently reported timely to FSRS no later than the end of the month following the month of issuance. Documentation of implemented controls should be readily available for auditors. Action taken in response to finding: EOLWD Finance has finalized a Standard Operating Procedure (SOP) to ensure compliance with the Federal Funding Accountability and Transparency Act (FFATA) reporting requirements. FFATA reporting as of FY 2025 has been transitioned to SAM.gov, providing a more streamlined and user-friendly platform for managing and tracking subaward reporting. To support timely submissions, a calendar reminder has been implemented to prompt monthly checks of reporting activity. The next phase of implementation will focus on expanding staff training to ensure more team members are equipped to complete FFATA reporting tasks accurately and efficiently. Ongoing monitoring will continue to ensure reporting remains timely and accurate, with periodic reviews conducted to assess performance and identify any needed updates to the SOP. Name(s) of the contact person(s) responsible for corrective action: Sarah Shannon, Ken Luke Planned completion date for corrective action plan: 9/30/2025

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Finding 565422 (2024-006)

Significant Deficiency 2024

Commonwealth of Massachusetts

MA

Special Tests & Provisions Eligibility Reporting § 200.303

EXECUTIVE OFFICE OF LABOR AND WORKFORCE DEVELOPMENT Unemployment Insurance, COVID-19 – Unemployment Insurance - Assistance Listing No. 17.225 Recommendation: We recommend the Department review and enhance procedures and controls to ensure that RESEA program requirements are met. We further recommend...

EXECUTIVE OFFICE OF LABOR AND WORKFORCE DEVELOPMENT Unemployment Insurance, COVID-19 – Unemployment Insurance - Assistance Listing No. 17.225 Recommendation: We recommend the Department review and enhance procedures and controls to ensure that RESEA program requirements are met. We further recommend the Department develop a formal process to review quarterly performance reports for accuracy prior to submission. Action taken in response to finding: MDUA’s legacy system had a known issue with maintaining documents. In some instances, the legacy system did not keep a copy of correspondence. In May 2025, MDUA implemented a new, modernized UI administrative system known as EMT. During the integration process, memorializing documents the system generated was a priority. Now with a fully implemented system, all documents will be saved. In addition, the RESEA program has a required reporting standard administered through the federal SUN system. Although MDUA has an established process for completing this work, MDUA does not have an audit trail to show it was completed. Moving forward, MDUA will enhance this procedure to ensure MDUA has documentation to maintain compliance. Name(s) of the contact person(s) responsible for corrective action: John Saulnier, Director of Benefit Performance Planned completion date for corrective action plan: 9/30/2025

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Finding 565420 (2024-005)

Significant Deficiency 2024

Commonwealth of Massachusetts

MA

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

EXECUTIVE OFFICE OF LABOR AND WORKFORCE DEVELOPMENT 2024-005 Unemployment Insurance, COVID-19 – Unemployment Insurance - Assistance Listing No. 17.225 Recommendation: We recommend the Department review and enhance procedures and controls to ensure that BAM case investigations are completed timely in...

EXECUTIVE OFFICE OF LABOR AND WORKFORCE DEVELOPMENT 2024-005 Unemployment Insurance, COVID-19 – Unemployment Insurance - Assistance Listing No. 17.225 Recommendation: We recommend the Department review and enhance procedures and controls to ensure that BAM case investigations are completed timely in accordance with the time limits established in the ET Handbook No. 395. Action taken in response to finding: Analysis showed that BAM Investigators spend a minimum of 20% of work hours devoted to clerical tasks necessary to develop an investigatory file. As part of MDUA’s modernized UI system, the new system features an electronic BAM casefile which should reduce clerical work 5% or below, and, in turn, allow additional time to investigate and complete case work. BAM has always relied on postal mail as a primary methodology to contact interested persons. By integrating the BAM casefile into the UI system, investigators can send questionnaires and notifications to interested persons through the system. In turn, interested persons may complete questionnaires and upload information into the system thereby reducing time between issuance of documents and response. Name(s) of the contact person(s) responsible for corrective action: Susan Saulnier, Director of UI Performs Planned completion date for corrective action plan: June 2026 This statistic is compiled for a year of data. Because BAM was not an on-line program, all cases prior to May 18, 2025 remain in the old format, and, therefore were not placed in the new system. As of May 19, 2025 and moving forward, all BAM cases will be held in the electronic case file. By June 2026, MDUA will have a year of data with improvements to BAM investigative methodology.

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Finding 565416 (2024-008)

None 2024

Commonwealth of Massachusetts

MA

Matching / Level of Effort / Earmarking § 200.303

EXECUTIVE OFFICE OF LABOR AND WORKFORCE DEVELOPMENT 2024-008 Employment Service Cluster - Assistance Listing No. 17.207, 17.801 Recommendation: We recommend the Department develop and document internal controls over reporting earmarking requirements to ensure that reports are accurate and that earma...

EXECUTIVE OFFICE OF LABOR AND WORKFORCE DEVELOPMENT 2024-008 Employment Service Cluster - Assistance Listing No. 17.207, 17.801 Recommendation: We recommend the Department develop and document internal controls over reporting earmarking requirements to ensure that reports are accurate and that earmarking requirements are met. Action taken in response to finding: EOLWD Finance has developed a new Expenditure Detail Report (EDR) within their internal Finance Data Mart. This new report is designed to mirror the structure of federal quarter filings and improve the traceability between reported expenditures and source documentation. Beginning in FY26, phase codes associated with federal grant activity will be further disaggregated and mapped in MMARS screen BQ87 (Federal Grant Phase Budget Status). This enhancement will improve the accuracy and clarity of budget-to-actual comparisons by providing a clearer breakout of expenditures by phase. It will also strengthen internal controls and facilitate better alignment between MMARS, Finance Data Mart, and federal reporting requirements. Finance and DCS will continue to conduct joint reviews of the EDR each quarter to ensure data consistency across systems and compliance with federal reporting standards. Name(s) of the contact person(s) responsible for corrective action: Dave Manning and Ken Luke Planned completion date for corrective action plan: 12/31/2025

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Finding 565414 (2024-007)

Material Weakness 2024

Commonwealth of Massachusetts

MA

Subrecipient Monitoring Material Weakness Reporting § 200.303

EXECUTIVE OFFICE OF LABOR AND WORKFORCE DEVELOPMENT 2024-007 Employment Service Cluster - Assistance Listing No. 17.207, 17.801 Recommendation: The Department should implement procedures and internal controls to ensure that all required subawards are reviewed, approved, and subsequently timely submi...

EXECUTIVE OFFICE OF LABOR AND WORKFORCE DEVELOPMENT 2024-007 Employment Service Cluster - Assistance Listing No. 17.207, 17.801 Recommendation: The Department should implement procedures and internal controls to ensure that all required subawards are reviewed, approved, and subsequently timely submitted to FSRS no later than the end of the month following the month of issuance. Documentation of implemented controls should be readily available for auditors. Action taken in response to finding: EOLWD Finance needs to update the Standard Operating Procedure (SOP) to ensure compliance with the Federal Funding Accountability and Transparency Act (FFATA) reporting requirements. FFATA reporting as of FY 2025 has been transitioned to SAM.gov, providing a more streamlined and user-friendly platform for managing and tracking subaward reporting. To support timely submissions, a calendar reminder has been implemented to prompt monthly checks of reporting activity. The next phase of implementation will focus on expanding staff training to ensure more team members are equipped to complete FFATA reporting tasks accurately and by establishing a more accurate subaward report. Ongoing monitoring will continue to ensure reporting remains timely and accurate, with periodic reviews conducted to assess performance and identify any needed updates to the SOP. Name(s) of the contact person(s) responsible for corrective action: Sarah Shannon, Ken Luke Planned completion date for corrective action plan: 9/30/2025

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Finding 565411 (2024-003)

Material Weakness 2024

Commonwealth of Massachusetts

MA

Special Tests & Provisions Procurement, Suspension & Debarment Eligibility § 200.303

DEPARTMENT OF TRANSITIONAL ASSISTANCE 2024-003 SNAP Cluster - Assistance Listing No. 10.551, 10.561 Recommendation: We recommend the Department review and enhance procedures and controls to ensure that documentation for EBT reconciliations is maintained in accordance with the federal program require...

DEPARTMENT OF TRANSITIONAL ASSISTANCE 2024-003 SNAP Cluster - Assistance Listing No. 10.551, 10.561 Recommendation: We recommend the Department review and enhance procedures and controls to ensure that documentation for EBT reconciliations is maintained in accordance with the federal program requirements. Action taken in response to finding: Starting July 2025, the Accounting Director (or Deputy Accounting Director when hired) will sign and date the reconciliation documentation (and retain) when reviews are performed. The standard operating procedures will be clarified that preparer and reviewer typing their names and date within the reconciliation documentation is an acceptable form of sign-off upon completion of the reconciliations and reviews. Name(s) of the contact person(s) responsible for corrective action: Keivon Spencer, Director of Accounting | DTA Finance Planned completion date for corrective action plan: June 30, 2025 and forward – Sign and date reconciliation reviews October 30, 2025 – Standard operating procedures

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Finding 565378 (2024-002)

Significant Deficiency 2024

George J. and Hilda Meyer Foundation, Inc.

MO

Internal Control / Segregation of Duties Significant Deficiency Matching / Level of Effort / Earmarking

U.S. Department of Agriculture 2024-002 Communities Facilities Loans & Grants – Assistance Listing No. 10.766 Recommendation: We recommend the Foundation design controls to ensure that the calculation is completed in accordance with the loan agreement and funded in full prior to the end of each fisc...

U.S. Department of Agriculture 2024-002 Communities Facilities Loans & Grants – Assistance Listing No. 10.766 Recommendation: We recommend the Foundation design controls to ensure that the calculation is completed in accordance with the loan agreement and funded in full prior to the end of each fiscal year. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The USDA has waived this requirement in past years. The community obtained a waiver for the current period. Name(s) of the contact person(s) responsible for corrective action: Tiffany Goetz Planned completion date for corrective action plan: June 2, 2025

View Audit 359225

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