Corrective Action Plans

Finding 1205195 (2025-002)

Material Weakness 2025

Gaudenzia Inc.

PA

Questioned Costs Allowable Costs / Cost Principles Eligibility

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: HOME Investment Partnership Program Assistance Listing Number: 14.239 Pass-Through Agencies: City of Philadelphia, Redevelopment Authority: Venango – Loan Thompson Street – Loan County of Schuylkill - Home Investm...

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: HOME Investment Partnership Program Assistance Listing Number: 14.239 Pass-Through Agencies: City of Philadelphia, Redevelopment Authority: Venango – Loan Thompson Street – Loan County of Schuylkill - Home Investment Partnerships and Housing Trust Funds Programs: Fountain Springs - Loan Mayor and City of Baltimore: Baltimore Housing - Park Heights Women and Children - Loan Type of Finding: - Material Weakness in Internal Control over Compliance - Other Matters Condition: As part of the eligibility requirement for the HOME Investment Partnership program, we are required to review files of client residents who were provided residential drug and alcohol treatment services at the Organization’s locations in Venango (Re-Entry), Fountain Springs, Thompson Street, and Park Heights Women and Children. We sampled a total of 40 resident clients at these four locations covered by HOME loans and requested documentation within client resident files, including proof of residency, proof of income (low income or homeless). Of 40 resident client files reviewed, management could not provide proof of income or residency status for 16 clients, or policies and procedures manuals for 22 clients. Recommendation: We recommend that management adopt and implement formal policies and procedures to ensure compliance with HOME eligibility requirements. Such policies and procedures should include clear communication of compliance requirements between staff and locations, standardized documentation and processes for determining and verifying income eligibility during intake, and procedures for the redetermination of income eligibility for residential clients residing at a location for more than one year. Repeat Finding: 2024-001 Explanation of Disagreement with Audit Finding Management acknowledges the finding and continues to strengthen internal controls related to HOME program compliance, including eligibility documentation and file retention practices across all residential program locations. Management agrees that consistent documentation of eligibility, including proof of income and residency status (as applicable under HOME requirements), is critical. We are currently reviewing and enhancing intake procedures, documentation standards, and internal monitoring processes to ensure all required eligibility documentation is properly obtained, maintained, and uniformly applied across all locations. Action taken in response to finding: In response to the recommendation, management will develop and implement formalized policies and procedures to strengthen compliance with HOME requirements. These will include standardized guidance for eligibility determination at intake, clear documentation requirements across all sites, and procedures for ongoing eligibility review for clients residing in programs beyond one year. Name of the contact person responsible for corrective action: Dr. Deja Gilbert, PhD, MDA, FACHE, LPC, LMHC, President and CEO dgilbert@gaudenzia.org Planned completion date for corrective action plan: June 30, 2026

View Audit 396854

Finding 1205182 (2025-001)

Material Weakness 2025

TOWN OF FREETOWN

MA

Questioned Costs Subrecipient Monitoring Reporting § 200.1

Finding 2025-001 Condition: Expenditures were not reconciled to the general ledger for reporting submitted to the U.S. Department of the Treasury. Corrective Action Planned: Report differences to the U.S. Treasury will be corrected in the next report. Anticipated Completion Date: 4/30/2026 Contact: ...

Finding 2025-001 Condition: Expenditures were not reconciled to the general ledger for reporting submitted to the U.S. Department of the Treasury. Corrective Action Planned: Report differences to the U.S. Treasury will be corrected in the next report. Anticipated Completion Date: 4/30/2026 Contact: Matt Parent, Town Accountant

View Audit 396832

Finding 1205159 (2025-003)

Material Weakness 2025

Beacon College, Inc.

FL

Questioned Costs Student Financial Aid Eligibility

Recommendation: We recommend the College evaluate its procedures around packaging and awarding students to ensure loan eligibility is reassessed prior to disbursement. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to...

Recommendation: We recommend the College evaluate its procedures around packaging and awarding students to ensure loan eligibility is reassessed prior to disbursement. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: 􀁸 The College determined that this issue resulted from the absence of a consistent process to identify and reassess students whose transfer credits were added or revised after initial financial aid packaging, potentially affecting grade level classification and Direct Loan eligibility. 􀁸 To correct this, the College will revise its packaging procedures to require a mandatory review of Direct Loan eligibility whenever transfer credits are added or updated. The Financial Aid Office will work in coordination with the IT Department and the Registrar’s Office to develop automated reports or system alerts that flag students with transfer credit changes occurring after packaging. These reports will be reviewed regularly, and any impacted student records will be reassessed and updated as necessary prior to disbursement. 􀁸 In addition, the College will strengthen oversight by implementing monitoring controls such as requirements. These measures are intended to prevent future instances of under-awarding and to enhance internal controls within the financial aid packaging and awarding process. Name(s) of the contact person(s) responsible for corrective action: Stephanie Liebowitz, Director of Financial Aid Planned completion date for corrective action plan: April 15, 2026 – Procedures will be in place for the awards cycle of the incoming 2026-2027 class.

View Audit 396825

Finding 1205158 (2025-002)

Material Weakness 2025

Beacon College, Inc.

FL

Questioned Costs Student Financial Aid Material Weakness

Recommendation: We recommend the College evaluate its procedures and review policies in overseeing student credit balances to ensure that any credit balances as a result of Title IV aid are returned within the required timeframe. Explanation of disagreement with audit finding: There is no disagreeme...

Recommendation: We recommend the College evaluate its procedures and review policies in overseeing student credit balances to ensure that any credit balances as a result of Title IV aid are returned within the required timeframe. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The institution will conduct a comprehensive policy review related to student accounts and financial aid disbursements. The Student Accounts team will receive retraining, including additional Financial Aid–specific training focused on federal guidelines and compliance requirements. Cross training will be implemented within the Student Accounts team to prevent delays and ensure continuity of operations when staff are on leave. Ongoing communication protocols will also be reinforced between Student Accounts and the outsourced financial aid staffing team (Financial Aid Services (FAS)) regarding disbursement timing to promote coordination and timeliness. Name(s) of the contact person(s) responsible for corrective action: Scott Crawford, Director of Accounting and Melissa Ogelvie, Bursar Planned complet ion date for corrective action plan: July 1, 2027 – While we anticipate improvement in these processes throughout the training process, completion of these corrective actions will be complete by this date. This timeline accounts for the identification, scheduling, and completion of appropriate training opportunities, including potential external training or professional development programs that may require advance enrollment and availability.

View Audit 396825

Finding 1205154 (2025-001)

Material Weakness 2025

Hollister House, Inc.

OH

Questioned Costs HUD Housing Programs Internal Control / Segregation of Duties

S3800-090 Auditor's Summary of the Auditee's Comments on the Finding and Recommendations The Corporation concurs they failed to maintain the property. S3800-130 Response Indicator Agree S3800-140 Completion Date June 30, 2026 S3800-150 Response Management is working with HUD to ensure all exigent he...

S3800-090 Auditor's Summary of the Auditee's Comments on the Finding and Recommendations The Corporation concurs they failed to maintain the property. S3800-130 Response Indicator Agree S3800-140 Completion Date June 30, 2026 S3800-150 Response Management is working with HUD to ensure all exigent health and safety issues are resolved by the completion date above. S3800-160 Contact Person First Name Amin S3800-180 Contact Person Last Name Akbar

View Audit 396811

Finding 1205150 (2025-032)

Material Weakness 2025

State of Arkansas

AR

Allowable Costs / Cost Principles Eligibility Questioned Costs

Views of Responsible Officials and Planned Corrective Action: Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. For Sample Items 3, 5, 30, 37, and 40, DMS is currently developing system upgrades that will establish a revalidation date that is 60 days prior ...

Views of Responsible Officials and Planned Corrective Action: Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. For Sample Items 3, 5, 30, 37, and 40, DMS is currently developing system upgrades that will establish a revalidation date that is 60 days prior to the revalidation expiration date and auto-terminate providers at the time of their revalidation expiration date if they have not successfully completed the revalidation process. For Sample Item 24, DMS is currently developing a system change to reinstitute revalidation requirements for Early Intervention Day Treatment and Adult Developmental Day Treatment providers. Anticipated Completion Date: 6/30/2026 Contact Person: Name: Elizabeth Pitman Title: Director, Division of Medical Services Agency: Department of Human Services Address: 700 Main Street City, State, Zip: Little Rock, AR 72201 Phone Number: 501-244-3944 Email Address: Elizabeth.Pitman@dhs.arkansas.gov

View Audit 396807

Finding 1205149 (2025-031)

Material Weakness 2025

State of Arkansas

AR

Eligibility Questioned Costs Special Tests & Provisions

Finding Number: 2025-031 AL Number(s) and Program Title(s): 93.778 – Medical Assistance Program (Medicaid Cluster) Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. For Sample Item 13, DMS is currently developing system upgrades that will establish a revali...

Finding Number: 2025-031 AL Number(s) and Program Title(s): 93.778 – Medical Assistance Program (Medicaid Cluster) Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. For Sample Item 13, DMS is currently developing system upgrades that will establish a revalidation date that is 60 days prior to the revalidation expiration date and auto-terminate providers at the time of their revalidation expiration date if they have not successfully completed the revalidation process. For Sample Items 31, 35, and 40, DMS is currently developing a system change to reinstitute revalidation requirements for Early Intervention Day Treatment and Adult Developmental Day Treatment providers. Anticipated Completion Date: 6/30/2026 Contact Person: Name: Elizabeth Pitman Title: Director, Division of Medical Services Agency: Department of Human Services Address: 700 Main Street City, State, Zip: Little Rock, AR 72201 Phone Number: 501-244-3944 Email Address: Elizabeth.Pitman@dhs.arkansas.gov

View Audit 396807

Finding 1205148 (2025-030)

Material Weakness 2025

State of Arkansas

AR

Eligibility Questioned Costs Subrecipient Monitoring

Finding Number: 2025-030 ALN Number(s) and Program Title(s): 93.778 – Medical Assistance Program (Medicaid Cluster) Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. DCO will continue periodic matching and review of state employees with public assistance pr...

Finding Number: 2025-030 ALN Number(s) and Program Title(s): 93.778 – Medical Assistance Program (Medicaid Cluster) Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. DCO will continue periodic matching and review of state employees with public assistance programs administered by the agency. Appropriate disciplinary action will continue to be taken by the agency on its own employees based on the outcome of case reviews. The agency will explore the addition of systematic data matching to ensure that salaries of state employees are properly reflected in the eligibility determination and benefit calculation for public assistance benefits. For additional controls, the agency has incorporated a notice into the hiring process regarding reporting all changes in household circumstance and annual communications to all staff regarding their reporting obligations. Anticipated Completion Date: 6/30/26 Contact Person: Name: Mary Franklin Title: Director, Division of County Operations Agency: Department of Human Services Address: 700 Main Street City, State, Zip: Little Rock, AR 72201 Phone Number: 501-681-8377 Email Address: Mary.franklin@dhs.arkansas.gov

View Audit 396807

Finding 1205147 (2025-029)

Material Weakness 2025

State of Arkansas

AR

Questioned Costs Subrecipient Monitoring Eligibility

Finding Number: 2025-029 ALN Number(s) and Program Title(s): 93.778 – Medical Assistance Program (Medicaid Cluster) Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. For cases that included a date of death in MMIS, most deficiencies can be attributed to cas...

Finding Number: 2025-029 ALN Number(s) and Program Title(s): 93.778 – Medical Assistance Program (Medicaid Cluster) Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. For cases that included a date of death in MMIS, most deficiencies can be attributed to case worker error which is being addressed through continued worker education and training. A small number of deficiencies can be attributed to a variety of system errors which are in the process of being corrected. Recoupments of overpayments are also being processed. For cases with no date of death in MMIS, almost half were the result of the eligibility system not receiving the date of death via the monthly match to the Arkansas Department of Health (ADH) vital records data. DHS will work with ADH to identity date of death for those cases and identify any corrective action needed to the match process. The remaining deficiencies can be attributed to a variety of system errors which are in the process of being corrected and worker errors which is being addressed through worker education and training. Recoupments will be processed through both automatic reconciliation and manual processes. Anticipated Completion Date: 6/30/2026 Contact Person: Name: Mary Franklin Title: Director, Division of County Operations Agency: Department of Human Services Address: 700 Main Street City, State, Zip: Little Rock, AR 72201 Phone Number: 501-681-8377 Email Address: Mary.Franklin@dhs.arkansas.gov

View Audit 396807

Finding 1205146 (2025-028)

Material Weakness 2025

State of Arkansas

AR

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring

Finding Number: 2025-028 ALN Number(s) and Program Title(s): 93.778 – Medical Assistance Program (Medicaid Cluster) Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. For juveniles with SSI Medicaid, the Social Security Administration (SSA) is responsible fo...

Finding Number: 2025-028 ALN Number(s) and Program Title(s): 93.778 – Medical Assistance Program (Medicaid Cluster) Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. 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, which make up 95% of the total questioned costs for this finding, were reported timely to SSA by the agency. All payments noted as questioned costs were capitated payments which will be recouped through an automatic reconciliation process. Anticipated Completion Date: 6/30/26 Contact Person: Name: Elizabeth Pitman Title: Director, Division of Medical Services Agency: Department of Human Services Address: 700 Main Street City, State, Zip: Little Rock, AR 72201 Phone Number: 501-244-3944 Email Address: Elizabeth.Pitman@dhs.arkansas.gov

View Audit 396807

Finding 1205145 (2025-027)

Material Weakness 2025

State of Arkansas

AR

Allowable Costs / Cost Principles Eligibility Questioned Costs

Finding Number: 2025-027 ALN Number(s) and Program Title(s): 93.767 – Children’s Health Insurance Program Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. For Sample Items 8, 11, and 28, DMS is currently developing system upgrades that will establish a rev...

Finding Number: 2025-027 ALN Number(s) and Program Title(s): 93.767 – Children’s Health Insurance Program Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. For Sample Items 8, 11, and 28, DMS is currently developing system upgrades that will establish a revalidation date that is 60 days prior to the revalidation expiration date and auto-terminate providers at the time of their revalidation expiration date if they have not successfully completed the revalidation process. For Sample Item 30, a site visit has been completed for the provider. The process used for completion of site visits has been updated to address the cause for the delayed site visit. For Sample Item 12, DMS has implemented a system change to electronically collect information contained on the W-9 form which will eliminate the need for provider to submit the form. DHS is in the process of promulgating this policy change. Anticipated Completion Date: 6/30/2026 Contact Person: Name: Elizabeth Pitman Title: Director, Division of Medical Services Agency: Department of Human Services Address: 700 Main Street City, State, Zip: Little Rock, AR 72201 Phone Number: 501-244-3944 Email Address: Elizabeth.Pitman@dhs.arkansas.gov

View Audit 396807

Finding 1205144 (2025-026)

Material Weakness 2025

State of Arkansas

AR

Eligibility Questioned Costs Special Tests & Provisions

Finding Number: 2025-026 ALN Number(s) and Program Title(s): 93.767 – Children’s Health Insurance Program Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. For Sample Item 27, a site visit has been completed for the provider. The process used for completion...

Finding Number: 2025-026 ALN Number(s) and Program Title(s): 93.767 – Children’s Health Insurance Program Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. For Sample Item 27, a site visit has been completed for the provider. The process used for completion of site visits has been updated to address the cause for the delayed site visit. For Sample Items 30 and 35, DMS is currently developing system upgrades that will establish a revalidation date that is 60 days prior to the revalidation expiration date and auto-terminate providers at the time of their revalidation expiration date if they have not successfully completed the revalidation process. Anticipated Completion Date: 6/30/2026 Contact Person: Name: Elizabeth Pitman Title: Director, Division of Medical Services Agency: Department of Human Services Address: 700 Main Street City, State, Zip: Little Rock, AR 72201 Phone Number: 501-244-3944 Email Address: Elizabeth.Pitman@dhs.arkansas.gov

View Audit 396807

Finding 1205143 (2025-025)

Material Weakness 2025

State of Arkansas

AR

Questioned Costs Subrecipient Monitoring Eligibility

Finding Number: 2025-025 ALN Number(s) and Program Title(s): 93.767 – Children’s Health Insurance Program Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. The error was caused by an eligibility system defect that was corrected in April 2024. Anticipated Co...

Finding Number: 2025-025 ALN Number(s) and Program Title(s): 93.767 – Children’s Health Insurance Program Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. The error was caused by an eligibility system defect that was corrected in April 2024. Anticipated Completion Date: Complete Contact Person: Name: Mary Franklin Title: Director, Division of County Operations Agency: Department of Human Services Address: 700 Main Street City, State, Zip: Little Rock, AR 72201 Phone Number: 501-681-8377 Email Address: Mary.Franklin@dhs.arkansas.gov

View Audit 396807

Finding 1205142 (2025-024)

Material Weakness 2025

State of Arkansas

AR

Questioned Costs Subrecipient Monitoring Eligibility

Finding Number: 2025-024 ALN Number(s) and Program Title(s): 93.767 – Children’s Health Insurance Program Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. As the Public Health Emergency has concluded, the agency has returned to normal operations which requ...

Finding Number: 2025-024 ALN Number(s) and Program Title(s): 93.767 – Children’s Health Insurance Program Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. As the Public Health Emergency has concluded, the agency has returned to normal operations which requires independent assessments to be performed every twelve months for PASSE members. Anticipated Completion Date: Complete Contact Person: Name: Paula Stone Title: Director, Office of Substance Abuse and Mental Health Agency: Department of Human Services Address: 700 Main Street City, State, Zip: Little Rock, AR 72201 Phone Number: 501-686-9849 Email Address: Paula.stone@dhs.arkansas.gov

View Audit 396807

Finding 1205140 (2025-022)

Material Weakness 2025

State of Arkansas

AR

Questioned Costs Student Financial Aid Subrecipient Monitoring

Finding Number: 2025-022 ALN Number(s) and Program Title(s): 93.658 – Title IV-E Foster Care Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. DCFS will conduct a review to determine if additional controls are needed to ensure that foster homes complete all...

Finding Number: 2025-022 ALN Number(s) and Program Title(s): 93.658 – Title IV-E Foster Care Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. DCFS will conduct a review to determine if additional controls are needed to ensure that foster homes complete all required checks. All improper Title IV-E payments will be returned on the next CB-496 quarterly report. Anticipated Completion Date: 4/30/2026 Contact Person: Name: Tiffany Wright Title: Director, Division of Children and Family Services Agency: Department of Human Services Address: 700 Main Street City, State, Zip: Little Rock, AR 72201 Phone Number: 501-396-6477 Email Address: Tiffany.Wright@dhs.arkansas.gov

View Audit 396807

Finding 1205138 (2025-020)

Material Weakness 2025

State of Arkansas

AR

Questioned Costs Student Financial Aid Subrecipient Monitoring

Finding Number: 2025-020 ALN Number(s) and Program Title(s): 93.658 – Title IV-E Foster Care Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. The reconciliation process will be revised to specify steps to identify clients that are eligible to receive Title...

Finding Number: 2025-020 ALN Number(s) and Program Title(s): 93.658 – Title IV-E Foster Care Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. The reconciliation process will be revised to specify steps to identify clients that are eligible to receive Title IV-E funding and the process to update their IV-E status. The agency could not make the necessary corrections in AASIS when notified of the deficiency due to the expenses being posted in the prior fiscal year. All necessary adjustments will be made on the quarterly report for the period ending on 3/31/26. Anticipated Completion Date: 4/30/26 Contact Person: Name: Tiffany Wright Title: Director, Division of Children and Family Services Agency: Department of Human Services Address: 700 Main Street City, State, Zip: Little Rock, AR 72201 Phone Number: 501-396-6477 Email Address: Tiffany.Wright@dhs.arkansas.gov

View Audit 396807

Finding 1205137 (2025-019)

Material Weakness 2025

State of Arkansas

AR

Matching / Level of Effort / Earmarking Questioned Costs Subrecipient Monitoring

Finding Number: 2025-019 ALN Number(s) and Program Title(s): 93.575 – Child Care and Development Block Grant 93.596 – Child Care Mandatory and Matching Funds of the Child Care and Development Fund (CCDF Cluster) Views of Responsible Officials and Planned Corrective Action: DESE concurs with this fin...

Finding Number: 2025-019 ALN Number(s) and Program Title(s): 93.575 – Child Care and Development Block Grant 93.596 – Child Care Mandatory and Matching Funds of the Child Care and Development Fund (CCDF Cluster) Views of Responsible Officials and Planned Corrective Action: DESE concurs with this finding. Staff turnover resulted in missing the reporting submission deadlines for the ACF-696 reports. New procedures have been put into place for cross-training and quarterly reconciliations to prevent future expenditure reporting on the ACF-696 report from being missed. Anticipated Completion Date: Completed. Contact Person: Name: Greg Rogers Title: Chief Fiscal Officer Agency: DESE Address: 4 Capitol Mall, Room 204-A City, State, Zip: Little Rock, AR 72201 Phone Number: 501-682-4475 Email Address: Greg.Rogers@ade.arkansas.gov

View Audit 396807

Finding 1205122 (2025-008)

Material Weakness 2025

State of Arkansas

AR

Allowable Costs / Cost Principles Questioned Costs Subrecipient Monitoring § 200.403

Finding Number: 2025-008 ALN Number(s) and Program Title(s): 21.027 – COVID 19: Coronavirus State and Local Fiscal Recovery Fund (CSLFRF) Views of Responsible Officials and Planned Corrective Action: During the audit, initial evidence was submitted, including monthly and daily logs from vendor coach...

Finding Number: 2025-008 ALN Number(s) and Program Title(s): 21.027 – COVID 19: Coronavirus State and Local Fiscal Recovery Fund (CSLFRF) Views of Responsible Officials and Planned Corrective Action: During the audit, initial evidence was submitted, including monthly and daily logs from vendor coaches to verify coaching activities. Additional documentation, including daily logs obtained from vendors, is available for review. Adjustments and recommendations that have resulted from this audit will be incorporated into future processes and requirements for vendor coaches, to further strengthen our oversight and ensure ongoing adherence to required standards. There are procedures put into place to monitor vendor adherence to scheduled coaching days, with vendors consistently held to a high standard and expectation to fully complete contracted days by requiring vendors to do the following: • Submit monthly evidence of coaching activities that align with contracted days. The Division Received monthly summaries from vendors detailing coaching support, activities, and specific dates when coaching was provided. • Conduct scheduled site visits with state content leaders • Complete monthly walkthroughs with school leaders, with consistency of walkthrough data being outcomes-based and providing tangible evidence that coaching actions directly supported the improvement of instructional programs. Data is collected through Jot Form and displayed on an Air Table Dashboard. This has been maintained since 2023. • Hold ongoing meetings with district staff to review outcomes and address improvement areas, ensuring fulfillment of literacy coaching contracts under Agency requirements Transparency and compliance remain a priority. Required documentation will continue to be accessible to support any future reviews. Anticipated Completion Date: Continuous. Contact Person: Name: Greg Rogers Title: Chief Fiscal Officer Agency: DESE Address: 4 Capitol Mall, Room 204-A City, State, Zip: Little Rock, AR 72201 Phone Number: 501-682-4475 Email Address: Greg.Rogers@ade.arkansas.gov

View Audit 396807

Finding 1205118 (2025-004)

Material Weakness 2025

State of Arkansas

AR

Eligibility School Nutrition Programs Questioned Costs

Finding Number: 2025-004 ALN Number(s) and Program Title(s): 10.646 – Summer Electronic Benefit Transfer Program for Children Views of Responsible Officials and Planned Corrective Action: DHS concurs, in part, and disagrees, in part with this finding. The DCO ARIES team analyzed all potential duplic...

Finding Number: 2025-004 ALN Number(s) and Program Title(s): 10.646 – Summer Electronic Benefit Transfer Program for Children Views of Responsible Officials and Planned Corrective Action: DHS concurs, in part, and disagrees, in part with this finding. The DCO ARIES team analyzed all potential duplicates for 2024 and 2025. DCO considers 59.1% of the records to not be duplicates, because the records have different SSN’s and dates of birth. A total of 35.9% of cases have the same date of birth but different SSN’s and are potential duplicates. DCO is in the process of reviewing these cases to determine if any system or process adjustments are needed to prevent potential duplicates in the future. The remaining potential duplicates identified by ALA have already been resolved or are being investigated. A refresher training will be conducted with staff who determine eligibility and issue benefits for the Summer EBT program before the program starts in 2026. DCO disagrees that it did not meet the minimum sample verification requirements. A sample of 3% of approved applications received were reviewed according to the 2025 Plan of Operational Management that was approved by FNS. Anticipated Completion Date: 6/30/2026 Contact Person: Name: Mary Franklin Title: Director, Division of County Operations Agency: Department of Human Services Address: 700 Main Street City, State, Zip: Little Rock, AR 72201 Phone Number: 501-681-8377 Email Address: Mary.Franklin@dhs.arkansas.gov

View Audit 396807

Finding 1205117 (2025-003)

Material Weakness 2025

State of Arkansas

AR

Cash Management Questioned Costs Procurement, Suspension & Debarment

Finding Number: 2025-003 ALN Number(s) and Program Title(s): 10.646 – Summer Electronic Benefit Transfer Program for Children Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. The agency has updated its internal procedures to comply with FNS guidance that r...

Finding Number: 2025-003 ALN Number(s) and Program Title(s): 10.646 – Summer Electronic Benefit Transfer Program for Children Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. The agency has updated its internal procedures to comply with FNS guidance that requires Summer EBT funds to be drawn down after expenditures are made. All funds expunged from EBT cards are in the process of being returned to FNS. Anticipated Completion Date: 3/31/2026 Contact Person: Name: Renee Ikard Title: Chief Financial Officer Agency: Department of Human Services Address: 700 Main Street City, State, Zip: Little Rock, AR 72201 Phone Number: 501-681-8985 Email Address: Renee.Ikard@dhs.arkansas.gov

View Audit 396807

Finding 1205116 (2025-001)

Material Weakness 2025

Public Health Management Corporation

PA

Questioned Costs

Views of Responsible Officials and Planned Corrective Actions Corrective Action CVCA lost key accounting staff and new fiscal staff onboarded October 2024. The new fiscal staff was tasked with completing the FY22, FY23, and FY24 audits that were outstanding as well as working on FY25. The new CVCA f...

Views of Responsible Officials and Planned Corrective Actions Corrective Action CVCA lost key accounting staff and new fiscal staff onboarded October 2024. The new fiscal staff was tasked with completing the FY22, FY23, and FY24 audits that were outstanding as well as working on FY25. The new CVCA fiscal staff will verify that for cost reimbursement grants that only the 10% de minimis rate is charged to those grants. Contact person responsible for corrective action Johanna Dunleavy, Interim CFO. Planned completion date for corrective action plan Prior to June 30, 2026.

View Audit 396800

Finding 1205101 (2025-007)

Material Weakness 2025

Puerto Rico Safe Drinking Water Treatment Revolving Loan Fund

PR

Internal Control / Segregation of Duties Questioned Costs Subrecipient Monitoring

PRDOH partially agreed with this finding. The report of the External Quality Review Organization (EQRO) related to performance and quality of services provided by the Managed Care Organization (MCOs) were made available and presented on the Program’s website however, the PRDOH is working with the Me...

PRDOH partially agreed with this finding. The report of the External Quality Review Organization (EQRO) related to performance and quality of services provided by the Managed Care Organization (MCOs) were made available and presented on the Program’s website however, the PRDOH is working with the Medicaid Program Integrity to establish and strengthen our internal controls with regard the documentation and the monitoring process to ensure we comply with the guidelines established by the Federal Government.

View Audit 396776

Finding 1205098 (2025-004)

Material Weakness 2025

Puerto Rico Safe Drinking Water Treatment Revolving Loan Fund

PR

Eligibility Questioned Costs Cash Management

PRMP partially concurs with this finding and emphasizes that claims submitted to the federal government must accurately distinguish eligibility categories to ensure the appropriate federal matching percentage is applied. A corrective action plan has already been implemented as part of the Phase 3 ro...

PRMP partially concurs with this finding and emphasizes that claims submitted to the federal government must accurately distinguish eligibility categories to ensure the appropriate federal matching percentage is applied. A corrective action plan has already been implemented as part of the Phase 3 rollout of the MMIS project, initiated in May 2024. This phase focuses on establishing a comprehensive Financial Management solution within PRMMIS. The enhanced system capabilities support the calculation, production, and distribution of capitation and supplemental payments to carriers, including automated adjustments and reconciliations. Stabilization activities have also included the conversion and reconciliation of legacy system data to facilitate a seamless transition.

View Audit 396776

Finding 1205097 (2025-003)

Material Weakness 2025

Puerto Rico Safe Drinking Water Treatment Revolving Loan Fund

PR

Cash Management Questioned Costs Allowable Costs / Cost Principles § 200.302 § 200.303

The PRDOH agreed with the findings and is working with the Finance Department to establish and strengthen our internal controls to ensure all payments comply with the guidelines established by the Federal Government. On the other hand, PRDOH is working and verifying our written procedures to ensure ...

The PRDOH agreed with the findings and is working with the Finance Department to establish and strengthen our internal controls to ensure all payments comply with the guidelines established by the Federal Government. On the other hand, PRDOH is working and verifying our written procedures to ensure that payments are issued promptly after the drawdown is made.

View Audit 396776

Finding 1205077 (2025-001)

Material Weakness 2025

Lakeland University and Affiliate

WI

Special Tests & Provisions Questioned Costs Student Financial Aid

Student Financial Aid Cluster – Assistance Listing 84.007 – Federal Supplemental Educational Opportunity Grants; 84.063 –Federal Pell Grant Program; 84.268 – Federal Direct Loan Program Recommendation: We recommend the University evaluate its monitoring controls over outstanding Title IV refund chec...

Student Financial Aid Cluster – Assistance Listing 84.007 – Federal Supplemental Educational Opportunity Grants; 84.063 –Federal Pell Grant Program; 84.268 – Federal Direct Loan Program Recommendation: We recommend the University evaluate its monitoring controls over outstanding Title IV refund checks and credit balances to ensure that funds are returned to the Secretary no later than 240 days after the date the University issued the payment and credit balance payments are made within the 14-day requirement. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The University will implement a regular review process of all outstanding Title IV payments and monitoring procedures of credit balance payments during the year. Name(s) of the contact person(s) responsible for corrective action: Lenora Stuckmann, Vice President for Finance and Chief Financial Officer Planned completion date for corrective action plan: 06/30/2026. If there are any questions regarding this plan, please call Lenora Stuckmann at 920-565-1027

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