Corrective Action Plans

Finding 1225074 (2026-001)

Material Weakness 2026

Erie County Gaming Revenue Authority`

PA

Allowable Costs / Cost Principles Subrecipient Monitoring Reporting § 200.303

Finding 2026-001 – Internal Control over Financial Reporting – Allowable Costs U.S. Department of Treasury Passed Through the County of Erie COVID-19: Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027 Allowable Costs Contact Person Responsible for Corrective Action: Name: Tammi Michali T...

Finding 2026-001 – Internal Control over Financial Reporting – Allowable Costs U.S. Department of Treasury Passed Through the County of Erie COVID-19: Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027 Allowable Costs Contact Person Responsible for Corrective Action: Name: Tammi Michali Title: Office Manager Phone/Email: 814-897-2690 / tmichali@ecgra.org Auditor’s Recommendation: The auditors recommend that management implement procedures to ensure all disbursements charged to federal programs are formally reviewed and approved by the Board, or by a properly designated approver, and that such approval is evidenced in writing and maintained with the supporting disbursement documentation. Management should also implement a monitoring procedure to identify any disbursements processed without timely approval and ensure corrective action is taken. Corrective Action Plan: A resolution was passed by the Erie County Gaming Revenue Authority’s Board of Directors affirming their consent to disburse funds for Round 2 of the Educator Retention Awards. The Board was informed by the executive director that this was a clerical oversight as the action to fund Round 2 had been discussed and was given verbal approval at previous Strategic Planning meetings. Anticipated Completion Date: Corrective Action Plan was completed on May 21, 2026

View Audit 408211

Finding 1224373 (2026-002)

Material Weakness 2026

Dayspring Health, Inc.

TN

Reporting

Finding Number: 2026-002 Planned Corrective Action: To ensure compliance with federal reporting standards, the Health Center will require a secondary review of all federal reports submitted to granting agencies. The designated secondary reviewer shall be an individual that has strong knowledge of th...

Finding Number: 2026-002 Planned Corrective Action: To ensure compliance with federal reporting standards, the Health Center will require a secondary review of all federal reports submitted to granting agencies. The designated secondary reviewer shall be an individual that has strong knowledge of the reporting requirements. Additionally, the Health Center will implement policies and procedures surrounding file retention of the underlying data that supports federal reports submitted. Anticipated Completion Date: 1/31/2027 Responsible Contact Person: Braden Miller, Chief Financial Officer

View Audit 407682

Finding 1225399 (2025-002)

Material Weakness 2025

H.O.P.E. HELPING OURSELVES PREVENT EMERGENCIES

AK

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Reporting

Criteria: The objective of the Assistance Listing 93.912 is to improve services for substance use disorder (SUD) and opioid use disorder (OUD) through prevention, treatment, and recovery services. Management is responsible for establishing and maintaining internal controls, including formal policies...

Criteria: The objective of the Assistance Listing 93.912 is to improve services for substance use disorder (SUD) and opioid use disorder (OUD) through prevention, treatment, and recovery services. Management is responsible for establishing and maintaining internal controls, including formal policies and procedures for the review and approval of journal entries, adjustments to expenditures, and account reconciliations, to ensure expenditures reported to granting agencies are complete, accurate, allowable, and properly supported. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Containment -Once we were made aware of this finding through the audit, we began thinking of the most efficient way to document the Board’s knowledge and approvals of journal entries, including adjustments to expenditures and account reconciliations. Root Cause -HOPE is currently revising all policies and procedures. This was HOPE’s first federal single audit, so once we heard of the finding we prioritized revisions of fiscal policies and procedures to address the finding. Action Taken- The first board meeting after learning of this finding will be held on July 27th, 2026. Beginning with that meeting, the Board’s approval of the statement of activity detail, consisting of all charges and journal entries entered into HOPE’s accounting system since the date of the last Board meeting, will be approved via motion and seconded and noted as such in the Board meeting minutes. Most journal entries made during the month are currently entered into the system by HOPE’s CPA. The remaining journal entries are entered by HOPE’s Executive Director. To ensure that the Board is aware of the adjustments made in the system, all journal entries made since the last Board meeting will be approved via a motion and a second as a separate agenda item to ensure that the Board is reviewing these items particularly. All approvals will be noted in the Board meeting minutes. The list of journal entries viewed during the meeting will be initialed by a Board member and kept on file as documentation of internal controls.

View Audit 408352

Finding 1225393 (2025-001)

Material Weakness 2025

NORTHERN ELECTRIC COOPERATIVE, INC.

SD

Reporting Material Weakness

Federal Agency Name: Department of Homeland Security Pass-Through Entity: State of South Dakota Office of Emergency Management Assistance Listing Number: 97.039 Program Name: Hazard Mitigation Grant Program Finding Summary: The Association does not have an internal control system designed to provide...

Federal Agency Name: Department of Homeland Security Pass-Through Entity: State of South Dakota Office of Emergency Management Assistance Listing Number: 97.039 Program Name: Hazard Mitigation Grant Program Finding Summary: The Association does not have an internal control system designed to provide for a complete and accurate schedule of federal expenditures of federal awards being audited. As auditors, we were requested to assist with the preparation of the schedule and accompanying notes to the schedule. Corrective Action Plan: It is not cost effective to have an internal control system designed to provide for the preparation of the schedule of federal expenditures of federal awards and the accompanying notes to the schedule. We requested that our auditors, Eide Bailly, LLP, prepare the schedule and accompanying notes. We have designated a member of management to review the drafted schedule and accompanying notes to the schedule. Responsible Individuals: Char Hager, CEO Anticipated Completion Date: Ongoing

View Audit 408347

Finding 1225391 (2025-002)

Material Weakness 2025

Harrington Family Health Center

ME

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting § 200.512

Finding: 2025-002 Condition Found: The FAC filing for the fiscal year ended March 31, 2025, was submitted late. Individual(s) Responsible for Corrective Action: Chief Executive Officer, Fractional CFO, Board of Directors Planned Corrective Action: Management agrees with the finding. Due to the timin...

Finding: 2025-002 Condition Found: The FAC filing for the fiscal year ended March 31, 2025, was submitted late. Individual(s) Responsible for Corrective Action: Chief Executive Officer, Fractional CFO, Board of Directors Planned Corrective Action: Management agrees with the finding. Due to the timing of prior year audit completion and associated late filing, the Organization did not have sufficient time within the current audit period to fully implement and demonstrate the effectiveness of corrective actions related to audit timeliness. As a result, this finding has reoccurred. The Organization has strengthened oversight by formalizing a compliance calendar, assigning clear ownership of Single Audit and Federal Audit Clearinghouse deadlines, and incorporating milestone tracking into finance operations and executive oversight processes. In addition, continued fractional CFO support provides enhanced accountability and monitoring of financial reporting timelines. These actions build upon prior year corrective efforts and are designed to ensure timely and compliant filings going forward. Anticipated Completion Date: FY2026 filing cycle.

View Audit 408346

Finding 1225388 (2025-002)

Material Weakness 2025

Clermont County

OH

Subrecipient Monitoring Reporting § 200.414 § 200.502 § 200.510

DJFS will begin to use project numbers to allow for an additional check of all amounts reported. DJFS is also going to provide federal grant information to the Auditor’s office as soon as they complete their final report in order to give the Auditor’s office adequate time to review the information w...

DJFS will begin to use project numbers to allow for an additional check of all amounts reported. DJFS is also going to provide federal grant information to the Auditor’s office as soon as they complete their final report in order to give the Auditor’s office adequate time to review the information with MUNIS and will afford the Auditor’s office more time to compile the SEFA and have a secondary review to avoid any computational or clerical errors.

View Audit 408340

Finding 1225358 (2025-001)

Material Weakness 2025

American Bird Conservancy

VA

Reporting Significant Deficiency Internal Control / Segregation of Duties § 200.328

SF-425 Reporting Planned Corrective Action: American Bird Conservancy will prepare, review and maintain documented comparison of general ledger details to the SF-425 reports prepared. Person Responsible for Corrective Action Plan: Angela Modrick, Vice President of Finance Anticipated Date of Complet...

SF-425 Reporting Planned Corrective Action: American Bird Conservancy will prepare, review and maintain documented comparison of general ledger details to the SF-425 reports prepared. Person Responsible for Corrective Action Plan: Angela Modrick, Vice President of Finance Anticipated Date of Completion: Implemented

View Audit 408337

Finding 1225302 (2025-001)

Material Weakness 2025

Gallaudet University

DC

Reporting Significant Deficiency Internal Control / Segregation of Duties

FINDING 2025-001 Internal Control over Compliance and Compliance with Reporting (Significant Deficiency and Noncompliance) Responsive to finding: We agree with the finding. Corrective Action Plan: Gallaudet University will strengthen its procedures for collecting, maintaining, retaining, and reviewi...

FINDING 2025-001 Internal Control over Compliance and Compliance with Reporting (Significant Deficiency and Noncompliance) Responsive to finding: We agree with the finding. Corrective Action Plan: Gallaudet University will strengthen its procedures for collecting, maintaining, retaining, and reviewing supporting documentation for performance metrics reported to the U.S. Department of Education. Going forward, every reported metric will be supported by source documentation that is retained, readily accessible, and available for review upon request. The University will implement the following corrective actions: • Develop and document procedures identifying the source documentation required to support each reported performance metric. • Establish a centralized electronic repository for performance-metric documentation. Staff submitting a metric write-up will be required to submit the associated raw data file with it, so the source documentation is captured at the point of submission rather than reconstructed later. • Implement a review process requiring verification of supporting documentation prior to submission of reports. • Provide training to personnel responsible for collecting, compiling, and reporting performance metrics regarding documentation and record-retention requirements. • Periodically review supporting documentation to ensure compliance with Department of Education reporting requirements and federal record-retention standards. Together, these actions will address the documentation gap identified in the finding and establish a sustainable process to support future reporting cycles. Individual(s) Responsible for Corrective Action Plan: Caroline Kobek Pezzarossi, Dean of Curriculum, Outreach, Resources and Effectiveness Khadijat Rashid, Provost Estimated Completion Date: September 30, 2026

View Audit 408332

Finding 1225270 (2025-005)

Material Weakness 2025

Henry C. Nevins Home, Inc.

MA

HUD Housing Programs Internal Control / Segregation of Duties Special Tests & Provisions

Federal Award Finding 2025-005 - Material Weakness, Material Non-Compliance - Special Tests and Provisions, Surplus Cash and Distributions to Owners or Affiliates Finding: During the fiscal year ended December 31, 2025, project management did not prepare or document a surplus cash calculation in acc...

Federal Award Finding 2025-005 - Material Weakness, Material Non-Compliance - Special Tests and Provisions, Surplus Cash and Distributions to Owners or Affiliates Finding: During the fiscal year ended December 31, 2025, project management did not prepare or document a surplus cash calculation in accordance with HUD requirements, nor did management implement controls to review, approve, or retain documentation supporting the required calculation. Recommendation: Management should establish and implement formal policies and procedures to ensure that surplus cash is independently calculated in accordance with HUD requirements and the applicable HUD Regulatory Agreement. Such procedures should include preparation of a documented surplus cash calculation at each required reporting period using HUD-prescribed criteria; Independent review and approval of the surplus cash calculation by appropriate management personnel or, where applicable, the court-appointed receiver; and retention of supporting documentation sufficient to demonstrate compliance with HUD restrictions on the use and distribution of project funds. Management should coordinate with the court-appointed receiver and HUD to ensure that surplus cash determinations are performed consistently and in compliance with program requirements going forward. Action Taken: Management acknowledges the finding related to the absence of an independently prepared and documented surplus cash calculation. During the fiscal year ended December 31, 2025, the Organization operated in an environment of financial distress, limited staffing resources, and evolving oversight responsibilities, which contributed to informal and undocumented procedures related to surplus cash determinations. As disclosed in the financial statements, the Organization became subject to a court-appointed receivership. Following the appointment of the receiver, responsibility for financial oversight, including compliance with HUD cash flow and surplus cash requirements, has transitioned to the receiver in coordination with HUD. The receiver and management are evaluating HUD requirements related to surplus cash calculation. Responsible Person: Paul Valentine, Receiver Target Completion Date: September 30, 2026 Status: Not started

View Audit 408309

Finding 1225261 (2025-001)

Material Weakness 2025

Transcen, Inc.

MD

Subrecipient Monitoring Reporting

Finding (2025-001): TransCen did not consistently ensure that FFATA reporting requirements for applicable federal subawards were completed accurately and/or within required timeframes. Corrective Action: TransCen has established procedures to support FFATA compliance. Corrective actions focus on rei...

Finding (2025-001): TransCen did not consistently ensure that FFATA reporting requirements for applicable federal subawards were completed accurately and/or within required timeframes. Corrective Action: TransCen has established procedures to support FFATA compliance. Corrective actions focus on reinforcing consistent application of these procedures and strengthening oversight. • Responsibility & Oversight: Grants and Contracts Manager will serve as FFATA Compliance Coordinator. Accounting will perform a secondary review to confirm timely and accurate reporting. • Standardized Procedures: Existing procedures will be formalized to include identification of reportable subawards, required data elements, and reporting deadlines. • Checklist & Tracking: A FFATA checklist will be used during subaward issuance, and a centralized tracking log will monitor reporting status, due dates, and completion. • Training: Staff involved in grants administration will receive targeted FFATA training and periodic refreshers. • Ongoing Monitoring: Management will perform quarterly reviews of subawards to ensure compliance and address any exceptions in a timely manner. Implementation Timeline: Effective immediately, fully implemented by August 1, 2026 Responsible Official: Ann Deschamps, Mid Atlantic ADA Director Management Oversight: Laura Owens, President

View Audit 408304

Finding 1225247 (2025-001)

Material Weakness 2025

Rebuilding Together, Inc.

DC

Reporting Matching / Level of Effort / Earmarking § 200.328

Management has implemented enhanced procedures to strengthen the tracking, reconciliation, and reporting of recipient share (matching) contributions associated with federal awards under ALN 14.265, Rural Capacity Building for Community Development and Affordable Housing Grants. Actions include: 1. U...

Management has implemented enhanced procedures to strengthen the tracking, reconciliation, and reporting of recipient share (matching) contributions associated with federal awards under ALN 14.265, Rural Capacity Building for Community Development and Affordable Housing Grants. Actions include: 1. Updating the internal matching contribution tracking system to improve documentation and cumulative tracking of recipient share contributions by grant and reporting period. 2. Establishing a formal reconciliation process between supporting documentation, grant records, and amounts reported on the SF-425 to ensure both federal expenditures and applicable recipient share amounts are accurately reflected. 3. Implementing a pre-submission review checklist and control requiring verification that recipient share (matching) information has been evaluated, reconciled, and included on the SF-425, when applicable, prior to submission to the awarding agency. 4. Requiring supervisory review and approval of the completed SF-425 to confirm completeness, accuracy, and compliance with reporting requirements under 2 CFR §200.328 before certification and filing. 5. Updating internal grant reporting procedures and providing additional guidance to staff responsible for federal financial reporting regarding SF-425 reporting requirements and recipient share reporting expectations. Management will evaluate the SF-425 reports submitted during the audit period to determine whether amendments are necessary. If required, amended SF-425 reports will be submitted to accurately reflect recipient share (matching) contributions. Anticipated Completion Date: The enhanced controls were implemented during 2026 and will be operational for the preparation, review, and certification of the SF-425 for the reporting period ending June 30, 2026, and all future reporting periods. For the reports submitted before June 30, 2026, management will confirm with HUD by July 20 if they would like an amended report. If HUD request one, the amended report will be submitted by August 15. Responsible Contact: Lakia Goodman, Controller (preparation and reconciliation of recipient share reporting) Chris Perry Authorized SF-425 Signer/Certifying Official (final review and certification)

View Audit 408287

Finding 1225243 (2025-001)

Material Weakness 2025

Chinatown Manpower Project, INC

NY

Reporting

CMP will take the following actions to ensure timely submission in future years: •Submit the 2026 DCF within five (5) business days of receiving the final audit report. •Coordinate earlier with the external audit firm to establish mutually agreed-upon deadlines for key audit deliverables. •Implement...

CMP will take the following actions to ensure timely submission in future years: •Submit the 2026 DCF within five (5) business days of receiving the final audit report. •Coordinate earlier with the external audit firm to establish mutually agreed-upon deadlines for key audit deliverables. •Implement an internal calendar to track critical reporting dates and milestones, beginning with the FY2026 audit cycle. •Assign a dedicated staff member to monitor audit progress and communicate regularly with the audit team to avoid last-minute delays.

View Audit 408285

Finding 1225241 (2025-001)

Material Weakness 2025

Dreamkey Partners, Inc.

NC

Reporting Subrecipient Monitoring § 200.328

Finding 2025-001 Corrective Action Plan: Management acknowledges the reporting lapse identified and notes that all required semi-annual reports have since been submitted as of the report date. The delay appears to have been an isolated oversight rather than a systemic breakdown in compliance. To enh...

Finding 2025-001 Corrective Action Plan: Management acknowledges the reporting lapse identified and notes that all required semi-annual reports have since been submitted as of the report date. The delay appears to have been an isolated oversight rather than a systemic breakdown in compliance. To enhance controls over grant reporting and prevent recurrence, the Organization has implemented the following corrective actions: Established a formal grant reporting calendar that includes all required reporting deadlines for each federal award. Assigned clear responsibility for report preparation and submission to specific personnel within the finance function. Implemented a secondary review process whereby management monitors upcoming deadlines and confirms timely submission of reports. Incorporated periodic compliance check-ins to ensure adherence to grant reporting requirements throughout the year. Management believes these measures strengthen oversight and will ensure timely preparation and submission of all required reports going forward. Anticipated Completion Date: December 31, 2026

View Audit 408281

Finding 1225227 (2025-002)

Material Weakness 2025

City of Springdale, Ar

AR

Reporting § 200.328

City of Springdale, Arkansas Corrective Action Plan Contact Name: Cody Loerts Contact Phone Number: 479-750-8114 Audit Firm: Forvis Mazars, LLP Audit Period: December 31, 2025 Finding #2025-002 – Statement of Condition: The City did not submit the required annual Federal Financial Report (SF-425) to...

City of Springdale, Arkansas Corrective Action Plan Contact Name: Cody Loerts Contact Phone Number: 479-750-8114 Audit Firm: Forvis Mazars, LLP Audit Period: December 31, 2025 Finding #2025-002 – Statement of Condition: The City did not submit the required annual Federal Financial Report (SF-425) to the FAA for the period under audit. Response: The City concurs with the finding. Management will implement additional controls related to reporting. The completion date for the above-mentioned corrective action was December 2026.

View Audit 408256

Finding 1225080 (2025-001)

Material Weakness 2025

Laramie Child Development Corporation

WY

Reporting

Finding #2025-001: Financial Statement Preparation and Schedule of Expenditures of Federal Awards (SEFA) Responsible Individual: Debbie Sullivan, Fiscal Coordinator and Jennifer Brook, Chief Financial Officer Corrective Action Plan: It is more cost effective for the Organization to hire Ketel Thorst...

Finding #2025-001: Financial Statement Preparation and Schedule of Expenditures of Federal Awards (SEFA) Responsible Individual: Debbie Sullivan, Fiscal Coordinator and Jennifer Brook, Chief Financial Officer Corrective Action Plan: It is more cost effective for the Organization to hire Ketel Thorstenson, LLP, a public accounting firm, to prepare the full disclosure financial statements as a part of the annual audit process. Management of the Organization has reviewed the financial statements and schedule of expenditures of federal awards prepared by Ketel Thorstenson, LLP. The financial statements and SEFA have been compared and reconciled to the internal records maintained by the Organization. Management and the board of directors has been given adequate opportunity to ask questions regarding the financial statements and note disclosures and have received sufficient responses from the auditors prior to final publication of the audited financial statements and SEFA. Management is satisfied that appropriate actions have been taken to allow them to take responsibility for the financial statements. Anticipated Completion Date: Ongoing

View Audit 408239

Finding 1225070 (2025-002)

Material Weakness 2025

Mount Vernon Community School District

IA

Cash Management Reporting Internal Control / Segregation of Duties

1. Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. 2. Actions Planned in Response to Finding: Administration will add additional internal controls where the benefit exceeds the cost. 3. Official Responsible for Ensuring CAP: Michael Marshall, Board Se...

1. Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. 2. Actions Planned in Response to Finding: Administration will add additional internal controls where the benefit exceeds the cost. 3. Official Responsible for Ensuring CAP: Michael Marshall, Board Secretary/Treasurer, is the official responsible for ensuring corrective action of the deficiency. 4. Planned Completion Date for CAP: The planned completion date for the CAP is June 30, 2026. 5. Plan to Monitor Completion of CAP: The School Board will be monitoring this CAP.

View Audit 408200

Finding 1225061 (2025-066)

Material Weakness 2025

State of Rhode Island

RI

Eligibility Reporting Allowable Costs / Cost Principles

2025-066a: In order to address repeat income deficiencies from SWICA, Medicaid added The Work Number (TWN) as a new data source in August 2025. Since then, RI Bridges has been modified to first verify earned income against TWN. With this enhancement, Medicaid has seen an improvement in how earned in...

2025-066a: In order to address repeat income deficiencies from SWICA, Medicaid added The Work Number (TWN) as a new data source in August 2025. Since then, RI Bridges has been modified to first verify earned income against TWN. With this enhancement, Medicaid has seen an improvement in how earned income is verified during the post-eligibility verification (PEV) and annual renewal processes. Medicaid has determined the individuals flagged as being enrolled under the expansion pathway beyond their 65th birthday are the result of exceptions to the mass update eligibility process. Medicaid is working with our system vendor to develop a solution that will bypass this exception and terminate expansion eligibility for those turning 65 years old. RI Bridges appropriately identified the individual in question as requiring verification of citizenship status. However, as noted in the expansion age-out response, the mass update eligibility process exceptioned out, leaving the verification as unresolved and requiring manual review. Medicaid is working with our system vendor to develop a solution that will bypass this exception and terminate eligibility. Effective December 2025, the RI Bridges system receives quarterly matches from the SSA Death Master File (DMF). The DMF is automatically sent to the State as part of the quarterly PARIS data matching process. The State has deployed temporary system measures to process the file and automatically terminate Medicaid eligibility for individuals flagged as deceased on the DMF. As per section 71104 of the Working Families Tax Cut (WFTC) legislation, signed by the President on 7/4/25, the State will be deploying a long-term system enhancement to, “at least a quarterly basis, check the DMF to identify if enrolled individuals are deceased. If an individual is identified as deceased on the DMF, then the state must treat this information as factual, disenroll the individual, and discontinue any payments for items or services furnished after the death of the individual.” This enhancement is scheduled for the March 2027 release. In July 2024, federal partners operating the PARIS interstate match informed the State of a hold on PARIS interstate matching files. PARIS lifted the hold in October 2024. In November 2024, the State identified several defects in the PARIS results and suppressed requests for verification. A temporary system enhancement was logged to address the deficiencies and ensure the process was only requesting residency verification from individuals believed to be receiving Medicaid in another State. Long-term enhancements to the PARIS interstate match process are scheduled for late 2027. 2025-066b: Medicaid will continue to work with the Department of Human Services and HealthSource RI to improve reconciliation and quality assurance monitoring of eligibility and operational processes. Including, but not limited to automated quality control checks on batch processes, manual eligibility reviews of quarterly/annual activities, creating specialized reports, improving task logic, and identifying areas of repeat non-compliance to ensure appropriate controls are in place. 2025-066c: Upon notification from the systems team, Medicaid Finance will return any identified ineligible costs to the federal grantor. Anticipated Completion Dates: 2025-066a: Q4 2026 (exception scenarios) and Q4 2027 (PARIS) 2025-066b: Q4 2026 2025-066c: Ongoing Contact Persons: Anthony Salvo, Implementation Director of Policy and Programs, Executive Office of Health and Human Services anthony.salvo@ohhs.ri.gov Dezeree Hodish, Associate Director (Financial Management), Executive Office of Health and Human Services dezeree.hodish@ohhs.ri.gov

View Audit 408197

Finding 1225059 (2025-064)

Material Weakness 2025

State of Rhode Island

RI

Allowable Costs / Cost Principles Subrecipient Monitoring Eligibility

A file exchange process has been implemented where Gainwell pulls a monthly TPL report for each MCO which is shared with EOHHS to share with the MCO’s. EOHHS is unable to force the MCO’s to use the shared TPL data, we can only suggest they use it. At this point in time, the accuracy of the State’s T...

A file exchange process has been implemented where Gainwell pulls a monthly TPL report for each MCO which is shared with EOHHS to share with the MCO’s. EOHHS is unable to force the MCO’s to use the shared TPL data, we can only suggest they use it. At this point in time, the accuracy of the State’s TPL data is not good enough to reject encounter claims from the MCO’s. EOHHS continues to work on improving the TPL process specifically cleaning up the TPL data in the MMIS and eligibility system today. Future system enhancements include a direct TPL vendor and new TPL module which should improve TPL accuracy. Anticipated Completion Date: July 31, 2028 Contact Person: Jeffrey Schmeltz, Chief, Family Health Systems, Executive Office of Health and Human Services jeffrey.schmeltz@ohhs.ri.gov

View Audit 408197

Finding 1225058 (2025-063)

Material Weakness 2025

State of Rhode Island

RI

Reporting

2025-063a: On 5/14/2026 an IES system enhancement was deployed targeting the CHIP population. The change implemented allows the system to expedite automatic eligibility determinations on CHIP/MAGI cases when TPL is entered into the eligibility system. This will ensure that when TPL is added for a CH...

2025-063a: On 5/14/2026 an IES system enhancement was deployed targeting the CHIP population. The change implemented allows the system to expedite automatic eligibility determinations on CHIP/MAGI cases when TPL is entered into the eligibility system. This will ensure that when TPL is added for a CHIP member, the eligibility system will redetermine that eligibility automatically saving months of the member being in the incorrect category. EOHHS will work with Deloitte to continue to monitor the impacts of this change. OAG also noted there are cases where “eligibility terminated within RIBridges not populated within the MMIS”. As of today, there are only 62 cases for ALL of Medicaid categories where eligibility is closed in RIBridges and open in the MMIS. This count is very low when compared to each year since Bridges go-live in 2016. 2025-063b: EOHHS acknowledges that staff turnover and a lack of sufficient staff on the financial reporting team contributed to SFY 2025 reporting variances. Medicaid finance will continue to implement necessary changes to ensure accurate reporting. Changes implemented during SFY 2026 to reduce variances and assist with reconciliation work include: • Additional staffing o In process of hiring 3.0 additional FTEs directly to this team, increasing staff from 3.0 FTEs to 6.0 FTEs. o Temporarily transferred 2.0 FTEs from sister agencies to the Medicaid program to assist in federal reconciliations for SFY 2025 expenditures. o Temporary staff support has allowed existing staff to cross train team members on core functions to allow supervisors to focus on quarterly reporting challenges and improvements. • Contract support and review o Contracted with vendor that supported other Medicaid programs to review EOHHS’ CMS-64 quarterly reporting process and internal files to identify efficiencies and areas to automate to reduce the likelihood of human error. The vendor is also assisting with SFY 2025 reconciliation work. • Additional supervisory review and cross training o Prior to the start of each CMS-64, the team supervisor creates a work schedule with double-checks built into the processes which require numerous manual adjustments. The work is documented and reviewed to ensure timely submission of an accurate CMS-64. Three additional team members have also been trained in reconciling non-provider cycle expenditures each quarter. • Coordination of Medicaid Administrative Claiming draw downs and reporting o Beginning in SFY 2026, Q3, the Medicaid finance team now coordinates all administration claiming drawdowns to eliminate variances between drawn downs and reported expenditures. The coordination entails:  Switching the administrative draw down from bi-weekly to once a quarter.  Sending the proposed drawdowns to administrative claiming agencies.  Drawing down only what agencies verified should be drawn.  Sharing with sister agencies all draw down backup and final amounts.  Holding office hours each quarter before each draw down and federal reporting submission to address questions and concerns.  Reviewing and checking that each submitted administrative claiming quarterly report ties to the amount draw in that quarter. If there are variances, Medicaid finance works with the sister agencies to identify and correct the variance. 2025-063c: During SFY 2026 Medicaid Finance implemented changes to the administrative claiming and reporting process to help reconcile expenditures prior to the submission of the CMS-64 quarterly report. • Medicaid finance held training on February 4th detailing the historical draw down and reconciliation process and why it has not been effective. The training detailed possible changes to solicit agency input. • Beginning in SFY 2026, Q3, the Medicaid finance team now coordinates all administration claiming drawdowns to eliminate variances between drawn downs and reported expenditures. The coordination entails: o Switching the administrative draw down from bi-weekly to once a quarter. o Sending the proposed drawdowns to administrative claiming agencies. o Drawing down only what agencies verified should be drawn. o Sharing with sister agencies all draw down backup and final amounts. o Holding office hours each quarter before each draw down and federal reporting submission to address questions and concerns. o Reviewing and checking that each submitted administrative claiming quarterly report ties to the amount draw in that quarter. If there are variances, Medicaid finance works with the sister agencies to identify and correct the variance. • Contracted with vendor that supported other Medicaid programs to review EOHHS’ CMS-64 quarterly reporting process and internal files to identify efficiencies and areas to automate to reduce the likelihood of human error. Anticipated Completion Dates: 2025-063a: May 14, 2026 2025-063b / 2025-063c: Ongoing Contact Persons: Jeffrey Schmeltz, Chief, Family Health Systems, Executive Office of Health and Human Services jeffrey.schmeltz@ohhs.ri.gov Dezeree Hodish, Associate Director (Financial Management), Executive Office of Health and Human Services dezeree.hodish@ohhs.ri.gov

View Audit 408197

Finding 1225031 (2025-058)

Material Weakness 2025

State of Rhode Island

RI

Eligibility Cash Management HUD Housing Programs

Medicaid deployed a system enhancement to automatically run eligibility on CHIP individuals for whom TPL information was received from MMIS. This enhancement went live in May 2026. This enhancement will improve the accuracy of eligibility determinations for the Medicaid and CHIP populations. In July...

Medicaid deployed a system enhancement to automatically run eligibility on CHIP individuals for whom TPL information was received from MMIS. This enhancement went live in May 2026. This enhancement will improve the accuracy of eligibility determinations for the Medicaid and CHIP populations. In July 2024, federal partners operating the PARIS interstate match informed the State of a hold on PARIS interstate matching files. PARIS lifted the hold in October 2024. In November 2024, the State identified several defects in the PARIS results and suppressed requests for verification. A temporary system enhancement was logged to address the deficiencies and ensure the process was only requesting residency verification from individuals believed to be receiving Medicaid in another State. Long-term enhancements to the PARIS interstate match process are scheduled for late 2027. Anticipated Completion Date: Q4 2027 Contact Person: Anthony Salvo, Implementation Director of Policy and Programs, Executive Office of Health and Human Services Anthony.Salvo@ohhs.ri.gov

View Audit 408197

Finding 1225018 (2025-057)

Material Weakness 2025

State of Rhode Island

RI

Reporting § 200.302

DCYF has created separate GAP administrative and prevention services accounts since this deficiency was identified. Anticipated Completion Date: Complete Contact Person: Kimberly Reynolds, Associate Director of Financial Management, Department of Children, Youth and Families kim.reynolds@dcyf.ri.gov

View Audit 408197

Finding 1225017 (2025-056)

Material Weakness 2025

State of Rhode Island

RI

Internal Control / Segregation of Duties Reporting § 200.303

2025-056a: Management and budget will work with team members to allow for proper separation of responsibilities, as well as, ensure that proper training is provided. 2025-056b: MARVIN will address this issue as the department will not be waiting 45 days after the QE for the RPT54. It is going to be ...

2025-056a: Management and budget will work with team members to allow for proper separation of responsibilities, as well as, ensure that proper training is provided. 2025-056b: MARVIN will address this issue as the department will not be waiting 45 days after the QE for the RPT54. It is going to be more real time. MARVIN is proposed to go live at the end of CY2027 which means that we will have this issue for both 2026 and 2027 fiscal close. Anticipated Completion Date: Ongoing Contact Person: Kimberly Reynolds, Associate Director of Financial Management, Department of Children, Youth and Families kim.reynolds@dcyf.ri.gov

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Finding 1225016 (2025-055)

Material Weakness 2025

State of Rhode Island

RI

Eligibility Reporting Student Financial Aid

DCYF will continue to work with Public Consulting Group to ensure that eligibility quality control reviews are performed in a timely manner. Anticipated Completion Date: Ongoing Contact Person: Kimberly Reynolds, Associate Director of Financial Management, Department of Children, Youth and Families ...

DCYF will continue to work with Public Consulting Group to ensure that eligibility quality control reviews are performed in a timely manner. Anticipated Completion Date: Ongoing Contact Person: Kimberly Reynolds, Associate Director of Financial Management, Department of Children, Youth and Families kim.reynolds@dcyf.ri.gov

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Finding 1225008 (2025-051)

Material Weakness 2025

State of Rhode Island

RI

Reporting Matching / Level of Effort / Earmarking § 200.303

The Department is developing standardized written procedures for the preparation, reconciliation, review, and submission of required federal financial reports. The procedures will include reconciliation of reported expenditures to the State accounting system, identification of applicable appropriati...

The Department is developing standardized written procedures for the preparation, reconciliation, review, and submission of required federal financial reports. The procedures will include reconciliation of reported expenditures to the State accounting system, identification of applicable appropriation accounts, reporting thresholds, required documentation, submission deadlines, and documented supervisory review and approval prior to submission. The Department will also review previously identified reporting discrepancies and amend reports, as appropriate, to ensure compliance with federal reporting requirements. Development of these standardized procedures was temporarily delayed due to implementation of the State's Enterprise Resource Planning (ERP) system. DHS anticipates resuming this work during State Fiscal Year 2027 and incorporating lessons learned from the ERP implementation into its reporting procedures to strengthen financial reporting controls. Anticipated Completion Date: June 30, 2027 Contact Person: Ben Quattrucci, Assistant Director, Financial Contract Management, Department of Human Services benjamin.a.quattrucci@dhs.ri.gov

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Finding 1225007 (2025-050)

Material Weakness 2025

State of Rhode Island

RI

Subrecipient Monitoring Procurement, Suspension & Debarment Reporting

During the audit period, responsibility for FFATA reporting transitioned among multiple staff due to staffing changes, which contributed to untimely reporting. To strengthen internal controls and ensure continuity of operations, DHS will cross-train multiple employees on FFATA reporting requirements...

During the audit period, responsibility for FFATA reporting transitioned among multiple staff due to staffing changes, which contributed to untimely reporting. To strengthen internal controls and ensure continuity of operations, DHS will cross-train multiple employees on FFATA reporting requirements and reporting procedures. In addition, DHS will establish a standardized reporting calendar, designate primary and backup staff responsible for FFATA submissions, and implement a supervisory review process to verify that all required subaward reports are submitted timely and in accordance with federal reporting requirements. These actions are intended to strengthen monitoring controls, reduce the risk of reporting delays, and ensure ongoing compliance with FFATA reporting requirements. Anticipated Completion Date: July 31, 2026 Contact Person: Ben Quattrucci, Assistant Director, Financial Contract Management, Department of Human Services benjamin.a.quattrucci@dhs.ri.gov

View Audit 408197

Corrective Action Plans

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