Corrective Action Plans

Finding 530320 (2024-005)

Material Weakness 2024

State of Texas C/o Comptroller of Public Accounts

TX

Procurement, Suspension & Debarment Subrecipient Monitoring Material Weakness § 200.303

Corrective action plan: HHSC cannot commit to the specific designation of CAPPS-Financials as the improvement solution for FFATA reporting. However, HHSC is currently engaged in long-term planning related to improving FFATA reporting. HHSC continues to implement a quality review of selected progr...

Corrective action plan: HHSC cannot commit to the specific designation of CAPPS-Financials as the improvement solution for FFATA reporting. However, HHSC is currently engaged in long-term planning related to improving FFATA reporting. HHSC continues to implement a quality review of selected programs to assess FFATA compliance on an annual basis. Implementation dates: September 1, 2025 Responsible persons: Racheal Kane, Director, Federal Funds

View Audit 348386

Finding 530313 (2024-004)

Significant Deficiency 2024

State of Texas C/o Comptroller of Public Accounts

TX

Reporting Subrecipient Monitoring Significant Deficiency § 200.302 § 200.303 § 200.328 § 200.329

Corrective action plan: Federal Reporting will seek direction from the awarding agency if corrections are found to be needed after a report is submitted. If directed to, Federal Reporting will submit a revised report. If directed to wait until the next cumulative report to make the correction, Fed...

Corrective action plan: Federal Reporting will seek direction from the awarding agency if corrections are found to be needed after a report is submitted. If directed to, Federal Reporting will submit a revised report. If directed to wait until the next cumulative report to make the correction, Federal Reporting will save this documentation from the awarding agency. Implementation dates: February 12, 2025 (Implemented) Responsible persons: Alan Flynn, Manager, Federal Reporting

View Audit 348386

Finding 530307 (2024-003)

Significant Deficiency 2024

State of Texas C/o Comptroller of Public Accounts

TX

Questioned Costs Matching / Level of Effort / Earmarking Reporting § 200.303

Corrective action plan: To ensure correct reporting of Area Agencies on Aging (AAAs) expenditures on the SF425 report, going forward, the Office of Area Aging Agencies (OAAA) will provide updated expenditure data to HHSC Accounting after closeout for reconciliation of the final expenditures. For r...

Corrective action plan: To ensure correct reporting of Area Agencies on Aging (AAAs) expenditures on the SF425 report, going forward, the Office of Area Aging Agencies (OAAA) will provide updated expenditure data to HHSC Accounting after closeout for reconciliation of the final expenditures. For record keeping, OAAA will also take a snapshot of the supporting data to document the expenditures at the point in time when the data was generated for the SF425. OAAA will provide in-service training for OAAA Budget Analyst and Financial Analysts on the updated process for generating, reviewing, and reconciliation of expenditure data for SF425 reporting. Federal Reporting has updated the reporting procedures for this award to state that no expenditures with CAPPS Short ID 4000 (sub-recipient) should be included for HHSC’s administration state match requirement. Federal Reporting will revise final SF425 reports as necessary if we receive updated information from OAAA after a final report has been submitted. Implementation dates: September 2025 Responsible persons: Lori Conner, Manager, OAAA Fiscal and Contract Oversight Alan Flynn, Manager, Federal Reporting

View Audit 348386 Questioned Costs: $1

Finding 530305 (2024-002)

Significant Deficiency 2024

State of Texas C/o Comptroller of Public Accounts

TX

Cash Management Reporting Procurement, Suspension & Debarment § 200.303

Corrective action plan: To strengthen SEFA preparation and review, DSHS has designated the recently hired DSHS Financial Reporting Unit Manager and Accounting Section Director to oversee the following corrective action plan actions:  Formal updates to procedures to better implement policy;  Co...

Corrective action plan: To strengthen SEFA preparation and review, DSHS has designated the recently hired DSHS Financial Reporting Unit Manager and Accounting Section Director to oversee the following corrective action plan actions:  Formal updates to procedures to better implement policy;  Completion of hiring key financial reporting positions;  A refresher training for staff and contractors involved in SEFA preparation and review; and  Development of an internal quality review process for implementation during the next SEFA. Implementation dates: November 30, 2025 Responsible persons: Paige Lovejoy, DSHS Financial Reporting Unit Manager

View Audit 348386

Finding 530302 (2024-001)

Significant Deficiency 2024

Habitat for Humanity of New Castle County INC

DE

Allowable Costs / Cost Principles Reporting Cash Management § 200.502

Corrective Action Plan: The unaudited statements were corrected for FY2024 and are reflected in the audited statements. FY2023’s were corrected through the retained earnings that show on the FY2024’s audited statements as well in the prior year’s number on the statements. The FY2024 Single Audit ref...

Corrective Action Plan: The unaudited statements were corrected for FY2024 and are reflected in the audited statements. FY2023’s were corrected through the retained earnings that show on the FY2024’s audited statements as well in the prior year’s number on the statements. The FY2024 Single Audit reflects these changes as well. Management invoices at the times allowed upon the different grant funders based upon percentage of completion of the project/s. We will review all on-going projects at the end of each fiscal year during the audit with the auditors to determine what reporting has to be done in order to comply with the requirements of the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, (Uniform Guidance), Subpart F, Audit Requirements.

View Audit 348385

Finding 530275 (2024-001)

Material Weakness 2024

Richmond Community Schools

IN

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

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

View Audit 348364

Finding 530273 (2024-001)

Significant Deficiency 2024

City of Carthage, Missouri

MO

Reporting Significant Deficiency

Corrective Action Plan February 11, 2025 U.S. Department of the Treasury City of Carthage, Missouri respectfully submits the following corrective action plan for the year ended June 30, 2024. Contact information for the individual responsible for the corrective action: Ms. Traci Cox, Interim City Ad...

Corrective Action Plan February 11, 2025 U.S. Department of the Treasury City of Carthage, Missouri respectfully submits the following corrective action plan for the year ended June 30, 2024. Contact information for the individual responsible for the corrective action: Ms. Traci Cox, Interim City Administrator City of Carthage, Missouri 326 Grant St. Carthage, MO 64836 (417) 237-7000 Independent Public Accounting Firm: KPM CPAs, PC, 1445 E. Republic Road, Springfield, MO 65804 Audit Period: Year ended June 30, 2024 The findings from the June 30, 2024, Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Findings - Federal Award Program Audit Compliance and Significant Deficiency 2024-001 Reporting Recommendation: We recommend management implement policies and procedures to ensure required reports are completed accurately as required by the grant agreement and Uniform Guidance. Corrective Action Taken: We will report all expenditures and obligations through the Treasury's Reporting Portal for the report due April 30, 2025, to ensure compliance with reporting requirements. Anticipated Completion Date: April 2025

View Audit 348357

Finding 530271 (2024-001)

Significant Deficiency 2024

Olivet Nazarene University

IL

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

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

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

View Audit 348350

Finding 530262 (2024-005)

Significant Deficiency 2024

Salem Community College

NJ

Special Tests & Provisions Student Financial Aid Reporting

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

View Audit 348343

Finding 530244 (2024-004)

Significant Deficiency 2024

Wyandanch Union Free School District

NY

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Reporting § 200.430

U.S. Department of Education -Passed-through the NYS Education Department Title I Grants to Local Educational Agencies (LEAs); Assistance Listing Number (ALN) 84.010; Project # 's 0021-23-2955, 0011-23-6011, 0011-23-7200, 0011-24-2160, 0021-24-2955, Grant Period Fiscal Year Ended June 30, 2024 U....

U.S. Department of Education -Passed-through the NYS Education Department Title I Grants to Local Educational Agencies (LEAs); Assistance Listing Number (ALN) 84.010; Project # 's 0021-23-2955, 0011-23-6011, 0011-23-7200, 0011-24-2160, 0021-24-2955, Grant Period Fiscal Year Ended June 30, 2024 U.S. Department of Education -Passed-through the NYS Education Department - Education Stabilization Fund COVID-19 - Elementary and Secondary School Emergency Relief (ESSER) Fund; ALN 84.425D; Project #5891-21-2955; Grant Period - Fiscal Year Ended June 30, 2024 COVID-19 - American Rescue Plan - Elementary and Secondary School Emergency Relief (ARP ESSER) Fund; ALN 84.425U; Project 5880-21-2955, 5884-21-2955, 5883-21-2955, 5882-21- 2955; Grant Period -Fiscal Year Ended June 30, 2024 COVID-19 -American Rescue Plan -Elementary and Secondary School Emergency Relief - Homeless Children and Youth; ALN 84.425W; Project#5218-21-2955; Grant Period - Fiscal Year Ended June 30, 2024 Significant Deficiency Compliance Req uirement: Allowable Activities and Cost Principles Criteria: Per Uniform Guidance (2 CFR §200.430), payroll costs charged to federal grants must be supported by appropriate documentation reflecting actual time and effort spent on grant-related activities. Per District policy employees are required to submit Personnel Activity Reports (PARs) to certify time worked on a federal grant. PARs are then required to be reviewed and approved by a direct supervisor. Condition: We identified seventeen (17) instances of missing or incomplete PAR forms for Title I. Six (6) out of (17) employees did not complete a PAR form. Eleven (11) out of (17) did not document supervisor review and approval. For the education stabilization fund the District was unable to provide support for time and effort worked on the grant for eleven (11) employees. Cause: Due to significant changes in personnel and work environments of key employees, the District was unable to maintain adequate oversight over the payroll function. Effect: The District is not in compliance with federal grant requirements and District policy. Questioned Costs: None Recommendation: We recommend the District enhance internal control measures to verify the accuracy and completeness of PARs in a timely manner. We also recommend the District conduct independent reviews of the payroll process and time and effort reporting to verify established controls are functioning as intended. District's Response: The District agrees with this finding. The procedures that are typically followed were not in place during the 2024 school year due to staff changes but the District is back on track and following the correct protocol for the current year and going forward

View Audit 348332

Finding 530239 (2024-003)

Significant Deficiency 2024

Wyandanch Union Free School District

NY

Special Tests & Provisions Reporting Significant Deficiency

FINDING # 2024-003 (REPEAT FINDING OF #2023-004, 2022-001, #2021-002, #2020-003, and #2019-004) U.S. Department of Education -Passed-through the NYS Education Department Title I Grants to Local Educational Agencies (LEAs); Assistance Listing Number (ALN) 84.010; Project # 's 0021-23-2955, 0011-23-6...

FINDING # 2024-003 (REPEAT FINDING OF #2023-004, 2022-001, #2021-002, #2020-003, and #2019-004) U.S. Department of Education -Passed-through the NYS Education Department Title I Grants to Local Educational Agencies (LEAs); Assistance Listing Number (ALN) 84.010; Project # 's 0021-23-2955, 0011-23-6011, 0011-23-7200, 0011-24-2160, 0021-24-2955, Grant Period Fiscal Year Ended June 30, 2024 Significant Deficiency Compliance Requirement: Special Tests and Provisions - High School Graduation Rate Criteria: According to the OMB Compliance Supplement, the District is required to report graduation rate data using the four-year adjusted cohort rate, or one or more extended-year adjusted cohort rates. To remove a student from the cohort, the District is required to confirm, in writing, that the student transferred out, emigrated to another country, transferred to a prison or juvenile facility, or is deceased. To confirm that a student transferred out, the school or local education agency must retain documentation in writing that the student enrolled in another school or in an educational program that culminates in the award of a regular high school diploma. Condition: The District was unable to provide written documentation to support the removal of students from the regulatory adjusted cohort for seven (7) students selected for testing. Cause: The District did not retain written documentation to support the removal of students from the regulatory adjusted cohort when reporting graduation rate data. Effect: The District is not in compliance with the special tests and provisions - high school graduation rate compliance requirement. Questioned Costs: None. Recommendation: We recommend the District develop a system to maintain the appropriate documentation to support the removal of a student from the regulatory adjusted cohort when reporting graduation rate data. District's Response: The District agrees with the finding. The District's Registration and Attendance department is working under the guidance of the Superintendent of Schools to correct this issue and ensure complete and accurate records moving forward.

View Audit 348332

Finding 530238 (2024-008)

Significant Deficiency 2024

Bloomfield School District

IN

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

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

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

View Audit 348324

Finding 530235 (2024-006)

Material Weakness 2024

Bloomfield School District

IN

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

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

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

View Audit 348324

Finding 530229 (2024-004)

Material Weakness 2024

Bloomfield School District

IN

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

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

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

View Audit 348324

Finding 530221 (2024-006)

Significant Deficiency 2024

City of Framingham

MA

Reporting Significant Deficiency Internal Control / Segregation of Duties

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 530204 (2024-003)

Material Weakness 2024

Eastern Greene Schools

IN

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

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

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

View Audit 348306

Finding 530198 (2024-001)

Significant Deficiency 2024

Catholic Charities Hawaii

HI

Reporting Allowable Costs / Cost Principles Significant Deficiency

Beginning with the audited consolidated financial statements of Catholic Charities Hawaii for the year ended June 30, 2024, the Controller will ensure that each contract awarded and received is thoroughly analyzed prior to assigning a fund source. This control will properly identify federal funds th...

Beginning with the audited consolidated financial statements of Catholic Charities Hawaii for the year ended June 30, 2024, the Controller will ensure that each contract awarded and received is thoroughly analyzed prior to assigning a fund source. This control will properly identify federal funds that are to be reported on the SEFA.

View Audit 348304

Finding 530182 (2024-005)

Significant Deficiency 2024

Rio Arriba County

NM

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 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 530171 (2024-023)

Significant Deficiency 2024

State of Arkansas

AR

Student Financial Aid Subrecipient Monitoring Allowable Costs / Cost Principles

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

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

View Audit 348267

Finding 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 530168 (2024-020)

Material Weakness 2024

State of Arkansas

AR

Reporting Student Financial Aid Subrecipient Monitoring

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

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

View Audit 348267

Finding 530165 (2024-017)

Significant Deficiency 2024

State of Arkansas

AR

Subrecipient Monitoring Matching / Level of Effort / Earmarking Reporting

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

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

View Audit 348267

Finding 530163 (2024-015)

Significant Deficiency 2024

State of Arkansas

AR

Subrecipient Monitoring Reporting Significant Deficiency

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

Corrective Action Plans

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