Corrective Action Plans

Finding 530226 (2024-003)

Material Weakness 2024

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 530223 (2024-003)

Material Weakness 2024

City of Framingham

MA

Questioned Costs Eligibility Material Weakness

2024-003 Adult Education - Assistance Listing Number 84.002 Recommendation: We recommend procedures to maintain records related to eligibility determinations be implemented/strengthened. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken ...

2024-003 Adult Education - Assistance Listing Number 84.002 Recommendation: We recommend procedures to maintain records related to eligibility determinations be implemented/strengthened. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Adult Education department will now scan in the physical intake form that Adult ESL students self-report their eligibility status for MA DESE ACLS as well as have the student sign that form. This form will be stored electronically in addition to the information from the form being entered into the Adult ESL Access database and LACES . Name(s) of the contact person(s) responsible for corrective action: Dr. Kevin O’Connor, Claudia Castro Alves and Kate Fiore Planned completion date for corrective action plan: Effective as of 08/01/2024

View Audit 348312

Finding 530222 (2024-002)

Material Weakness 2024

City of Framingham

MA

Allowable Costs / Cost Principles Questioned Costs Material Weakness § 200.430

2024-002 Adult Education - Assistance Listing Number 84.002 Recommendation: We recommend procedures to maintain records that accurately reflect the work performed for payroll charges to the grant be implemented/strengthened. Explanation of disagreement with audit finding: There is no disagreement ...

2024-002 Adult Education - Assistance Listing Number 84.002 Recommendation: We recommend procedures to maintain records that accurately reflect the work performed for payroll charges to the grant be implemented/strengthened. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Adult Education department will be collecting the Time and Effort certifications for staff on Federal grants. Name(s) of the contact person(s) responsible for corrective action: Dr. Kevin O’Connor, Claudia Castro Alves and Kate Fiore Planned completion date for corrective action plan: Effective as of 10/10/2024 so will have Time and Effort certifications for all FY25 staff on Federal grant #2340

View Audit 348312 Questioned Costs: $1

Finding 530221 (2024-006)

Significant Deficiency 2024

City of Framingham

MA

Questioned Costs Reporting Significant Deficiency

2024-006 Coronavirus State and Local Fiscal Recovery Funds - Assistance Listing Number 21.027 Recommendation: We recommend procedures to file all required reports be strengthened. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in resp...

2024-006 Coronavirus State and Local Fiscal Recovery Funds - Assistance Listing Number 21.027 Recommendation: We recommend procedures to file all required reports be strengthened. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The City of Framingham acknowledges the finding and is committed to strengthening procedures for filing all required reports under the Coronavirus State and Local Fiscal Recovery Funds program. The City will implement additional internal controls, including enhanced tracking mechanisms and periodic internal audits, to ensure the timely and accurate submission of reports. Staff responsible for grant reporting will also undergo additional training on federal reporting requirements to improve compliance and reduce the risk of future findings. Name(s) of the contact person(s) responsible for corrective action: Jennifer Pratt Planned completion date for corrective action plan: 3/31/2025

View Audit 348312

Finding 530217 (2024-005)

Significant Deficiency 2024

City of Framingham

MA

Questioned Costs Procurement, Suspension & Debarment School Nutrition Programs

2024-005 Child Nutrition Cluster - Assistance Listing Numbers 10.553, 10.555 and 10.559 Recommendation: We recommend procedures to obtain and file all fully signed and executed contracts be strengthened. Explanation of disagreement with audit finding: There is no disagreement with the audit findin...

2024-005 Child Nutrition Cluster - Assistance Listing Numbers 10.553, 10.555 and 10.559 Recommendation: We recommend procedures to obtain and file all fully signed and executed contracts be strengthened. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Framingham Public School Finance Office will continue to follow the City of Framingham Procurement process for requesting review of all federal expenditures over $10K and do a follow up with the Procuremnt Office to ensure that a contract has been issued to the vendor. Name(s) of the contact person(s) responsible for corrective action: Jennifer Pratt, Margaret Ottaviani, Kate Fiore and Lincoln Lynch, IV Planned completion date for corrective action plan: Effective as of 07/01/2024

View Audit 348312

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

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring § 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 530182 (2024-005)

Significant Deficiency 2024

Rio Arriba County

NM

Questioned Costs Reporting

Late Submission of Annual Report (Significant Deficiency) Management is in agreement with this finding. The report was due on 4/30/2024 and was submitted 5/1/2024. During final report preparations, additional research needed to be done access to the accounting system was not available remotely at th...

Late Submission of Annual Report (Significant Deficiency) Management is in agreement with this finding. The report was due on 4/30/2024 and was submitted 5/1/2024. During final report preparations, additional research needed to be done access to the accounting system was not available remotely at the time, therefore, final submission was 10 hours past the deadline. Proper measures will be taken with the future submissions of this report to ensure it is submitted well within the required deadline.

View Audit 348271

Finding 530181 (2024-032)

Significant Deficiency 2024

State of Arkansas

AR

Questioned Costs Allowable Costs / Cost Principles Eligibility

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. For Sample Item 17, the screening activities associated with the revalidation were completed prior to the revalidation date through the Provider Enrollment, Chain, and Ownership System (PECOS). The provider ...

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. For Sample Item 17, the screening activities associated with the revalidation were completed prior to the revalidation date through the Provider Enrollment, Chain, and Ownership System (PECOS). The provider submitted their revalidation application timely, but during the revalidation process the agency requested corrections and clarifications of administrative and tax information. This delayed the final component of the screening, the site visit, until July 15, 2024. For Sample Item 22, DMS confirms there was no W-9 dated prior to February 7, 2024. The primary function of the W-9 form is to confirm the providers name, address, and tax information. This information was already listed in MMIS during the date in question. The W-9 submitted by the provider on April 4, 2024, confirmed the accuracy of the information in MMIS that the provider has used since its initial enrollment on July 20, 1981. DMS is developing a mechanism to obtain information provided on W-9’s by utilizing an electronic process through the provider portal during enrollment. Anticipated Completion Date: June 30, 2025 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 530180 (2024-031)

Significant Deficiency 2024

State of Arkansas

AR

Eligibility Questioned Costs Special Tests & Provisions

Views of Responsible Officials and Planned Corrective Action: DMS concurs with this finding. For Sample Item 15, DMS has implemented an automated process to notify providers of pending revalidations and to terminate them when revalidation is not completed within five years. For Sample Item 21, DMS ...

Views of Responsible Officials and Planned Corrective Action: DMS concurs with this finding. For Sample Item 15, DMS has implemented an automated process to notify providers of pending revalidations and to terminate them when revalidation is not completed within five years. For Sample Item 21, DMS has implemented automated processes utilizing data transfers from licensing boards that will now terminate providers when their license lapses. In addition, DMS is developing a mechanism to obtain information provided on W-9’s by utilizing an electronic process through the provider portal during enrollment. This provider was terminated on 10/2/23. For Sample Item 40, DMS has coordinated with Division of Provider Services and Quality Assurance (DPSQA) to interface with their certification tracking system and to provide additional notifications to providers when their certification period is nearing expiration. Notifications are being sent 30 days prior to the lapse of certification. DMS confirmed with DPSQA that there were no adverse events that lead to the termination of the provider’s certification. Anticipated Completion Date: June 30, 2025 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 530179 (2024-030)

Significant Deficiency 2024

State of Arkansas

AR

Questioned Costs Special Tests & Provisions Subrecipient Monitoring

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. All MFCU overpayment collections are received by DHS through an agency bank account dedicated to refunded overpayments. All transactions in that account are compiled into a monthly receivables report that is...

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. All MFCU overpayment collections are received by DHS through an agency bank account dedicated to refunded overpayments. All transactions in that account are compiled into a monthly receivables report that is used for quarterly reporting overpayments to CMS. The overpayment that was not included in the report was wired to the Arkansas State Treasury and the funds were moved to an AASIS fund. Because the funds were not received through the dedicated refund account, the overpayment was missed in the monthly report. For all future collections completed through electronic transfer of funds, the person or entity making the refund will be provided with ACH/EFT information for dedicated refund account. 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 530178 (2024-029)

Material Weakness 2024

State of Arkansas

AR

Special Tests & Provisions Questioned Costs Subrecipient Monitoring

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

Subrecipient Monitoring Eligibility Significant Deficiency

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

Subrecipient Monitoring Questioned Costs 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 530175 (2024-026)

Significant Deficiency 2024

State of Arkansas

AR

Questioned Costs Allowable Costs / Cost Principles

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding and that cost allocation is the most appropriate means for funding this work. DHS has implemented corrective action effective July 1, 2024, to change payment for Managerial Accounting services from 100% Medi...

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding and that cost allocation is the most appropriate means for funding this work. DHS has implemented corrective action effective July 1, 2024, to change payment for Managerial Accounting services from 100% Medicaid funding to a cost allocation methodology. Future contracts and contract extensions executed by the Office of Finance will be evaluated by the DHS Chief Financial Officer to determine the nature of work performed for each contract and specify the appropriate method of allocating costs for services. Anticipated Completion Date: Complete Contact Person: Renee Ikard Chief Financial Officer Department of Human Services 700 Main Street Little Rock, AR 72201 (501) 682-8985 Renee.Ikard@dhs.arkansas.gov

View Audit 348267 Questioned Costs: $1

Finding 530174 (2024-025)

Material Weakness 2024

State of Arkansas

AR

Subrecipient Monitoring Eligibility Questioned Costs

Views of Responsible Officials and Planned Corrective Action: DHS concurs with the finding. For Sample Item 32, the agency’s revalidation date was set for March 27, 2024, and the provider submitted their application for revalidation prior to that date. System updates and monitoring controls have bee...

Views of Responsible Officials and Planned Corrective Action: DHS concurs with the finding. For Sample Item 32, the agency’s revalidation date was set for March 27, 2024, and the provider submitted their application for revalidation prior to that date. System updates and monitoring controls have been implemented to ensure correct revalidation dates are entered in MMIS. For Sample Item 15, the provider submitted a revalidation application prior to their scheduled termination date. Since there was an active application in the system, the provider was not terminated. The revalidation was successfully completed. For Sample Item 21, the provider submitted their revalidation application on October 16, 2023, which was prior to the November 11, 2023 deadlines. Multiple follow-ups and requests for additional information from the provider resulted in completion of the revalidation after the deadline date. 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 Questioned Costs

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

Questioned Costs 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 530170 (2024-022)

Significant Deficiency 2024

State of Arkansas

AR

Questioned Costs Subrecipient Monitoring Eligibility

Views of Responsible Officials and Planned Corrective Action: DHS concurs with the finding. The agency updated its documented controls in March 2024 to require confirmation that agreements are signed by all parties before processing adoption subsidy packets and that all adoption files contain comple...

Views of Responsible Officials and Planned Corrective Action: DHS concurs with the finding. The agency updated its documented controls in March 2024 to require confirmation that agreements are signed by all parties before processing adoption subsidy packets and that all adoption files contain complete documentation. All findings occurred prior to the agency updating its documented controls. Anticipated Completion Date: Complete 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 Questioned Costs: $1

Finding 530169 (2024-021)

Significant Deficiency 2024

State of Arkansas

AR

Questioned Costs Allowable Costs / Cost Principles Eligibility

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. The DHS Accounts Receivables Unit is developing documented procedures and controls addressing the process for entering adoption subsidy overpayments into the agency’s accounts receivable system (AROPTS) and ...

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. The DHS Accounts Receivables Unit is developing documented procedures and controls addressing the process for entering adoption subsidy overpayments into the agency’s accounts receivable system (AROPTS) and DCFS is updating documented procedures and training on reporting of collected overpayments to the Accounts Receivable Unit. System changes are also in process for AROPTS that will pull the adjusted balance for overpayments when a notice is being created. Anticipated Completion Date: April 30, 2025 Contact Person: Renee Ikard Chief Financial Officer Department of Human Services 700 Main Street Little Rock, AR 72201 (501) 682-8985 Renee.Ikard@dhs.arkansas.gov

View Audit 348267 Questioned Costs: $1

Finding 530163 (2024-015)

Significant Deficiency 2024

State of Arkansas

AR

Questioned Costs Subrecipient Monitoring Reporting

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. The timeliness of quarterly financial reports was impacted by the transition of the TANF program to DHS. The federal awarding agency did not permit the agency to file current TANF award reports until prior y...

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. The timeliness of quarterly financial reports was impacted by the transition of the TANF program to DHS. The federal awarding agency did not permit the agency to file current TANF award reports until prior year’s reports were submitted. DHS has now submitted all reports that are currently due and has one full-time staff working the TANF award and associated reports. Anticipated Completion Date: Complete Contact Person: Renee Ikard Chief Financial Officer Department of Human Services 700 Main Street Little Rock, AR 72201 (501) 682-8985 Renee.Ikard@dhs.arkansas.gov

View Audit 348267

Finding 530161 (2024-013)

Significant Deficiency 2024

State of Arkansas

AR

Questioned Costs Subrecipient Monitoring Eligibility § 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 530155 (2024-007)

Material Weakness 2024

State of Arkansas

AR

Subrecipient Monitoring Allowable Costs / Cost Principles Questioned Costs § 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 530154 (2024-006)

Material Weakness 2024

State of Arkansas

AR

Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management § 200.403

Views of Responsible Officials and Planned Corrective Action: ASBO will work with our 3rd party program administrator to re-emphasize the importance of verifying the expenses for adequate supporting documentation and allowability. We will discuss the possibility of a repeat training with all federa...

Views of Responsible Officials and Planned Corrective Action: ASBO will work with our 3rd party program administrator to re-emphasize the importance of verifying the expenses for adequate supporting documentation and allowability. We will discuss the possibility of a repeat training with all federal grant subrecipients. Anticipated Completion Date: August 1, 2025 Contact Person: Glen Howie, Jr. Director, Ark State Broadband Office Department of Commerce 1 Commerce Way Little Rock, AR 72202 (501) 682-1123 Glen.Howie@Arkansas.gov

View Audit 348267 Questioned Costs: $1

Finding 530153 (2024-005)

Significant Deficiency 2024

State of Arkansas

AR

Cash Management Questioned Costs 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

Corrective Action Plans

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