Corrective Action Plans

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Finding NO. 2025-002 Reporting SF-425 View of the University of Guam and Corrective Action Plan: The University acknowledges the finding. The University notes that, for each SF-425 submission, it consults with the assigned Economic Development Administration (EDA) grant coordinator and provides supp...
Finding NO. 2025-002 Reporting SF-425 View of the University of Guam and Corrective Action Plan: The University acknowledges the finding. The University notes that, for each SF-425 submission, it consults with the assigned Economic Development Administration (EDA) grant coordinator and provides supporting documentation for the reported amounts. The amounts reported for “cash receipts” were reviewed and acknowledged by EDA and reconciled to the University’s reimbursement records. The University also consulted with EDA regarding whether revised reports were necessary. EDA informed the University that revised reports may be submitted but are not required. Accordingly, while the reporting basis selected on the form was not consistent with the basis used in preparing the supporting accounting records, the University believes the underlying amounts reported were supported, reconciled, and accepted by the federal grantor agency. To strengthen compliance going forward, the University will enhance its review procedures to ensure consistency between the reporting basis selected on the SF-425, supporting accounting records, and federal reporting instructions. Name of Contact Person: Abigail Martin, Comptroller Proposed Completion date: July 31, 2026
Proteus, Inc will implement a reconcilliation process for reconciling our two payroll systems through an automated program reducing manually time involved and data entry errors. Transitioning to a new integrated accounting system will significantly reduce errors and eliminate manual processes. We wi...
Proteus, Inc will implement a reconcilliation process for reconciling our two payroll systems through an automated program reducing manually time involved and data entry errors. Transitioning to a new integrated accounting system will significantly reduce errors and eliminate manual processes. We will also provide additional staff training to assure the accountability over timekeeping.
Compliance Finding – Uniform Guidance Head Start Program Cluster #93.600 Material Noncompliance 2025-002 Federal Reporting and Grant Drawdown RECOMMENDATION: Management should implement procedures to ensure 1) all required federal reports are submitted timely, 2) federal reporting systems are adequa...
Compliance Finding – Uniform Guidance Head Start Program Cluster #93.600 Material Noncompliance 2025-002 Federal Reporting and Grant Drawdown RECOMMENDATION: Management should implement procedures to ensure 1) all required federal reports are submitted timely, 2) federal reporting systems are adequately monitored and supported, and 3) grant funds are not drawn down prior to obtaining all required federal approvals. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION: Management believes that the organization maintains a comprehensive and effective system of internal controls over financial reporting, compliance, and grant administration. The findings relate to a specific control deficiency identified during the audit which were both impacted by a lack of communications from the funding agency and the 43-day Federal Government shutdown from October 1, 2025 to November 12, 2025, and do not, in management's view, reflect a systemic weakness in the overall control environment. Management acknowledges the circumstances that resulted in the findings and recognizes the opportunity to strengthen certain procedures and documentation practices. The conditions identified were limited in scope and occurred despite the existence of established policies, oversight processes, and monitoring activities designed to promote compliance with applicable federal requirements.
Internal Control Over Compliance – Uniform Guidance Head Start Program Cluster #93.600 Significant Deficiency in Internal Control Over Compliance 2025-001 Federal Reporting and Grant Drawdown RECOMENDATION: Management should strengthen internal controls over federal reporting and grant administratio...
Internal Control Over Compliance – Uniform Guidance Head Start Program Cluster #93.600 Significant Deficiency in Internal Control Over Compliance 2025-001 Federal Reporting and Grant Drawdown RECOMENDATION: Management should strengthen internal controls over federal reporting and grant administration by 1) implementing procedures to ensure timely submission of all required federal reports, 2) establishing contingency procedures for system interruptions, and 3) requiring documented evidence of federal approval prior to drawing down grant funds associated with capital expenditures or other restricted activities. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION: Management believes that the organization maintains a comprehensive and effective system of internal controls over financial reporting, compliance, and grant administration. The findings relate to a specific control deficiency identified during the audit which were both impacted by a lack of communications from the funding agency and the 43-day Federal Government shutdown from October 1, 2025 to November 12, 2025, and do not, in management's view, reflect a systemic weakness in the overall control environment. Management acknowledges the circumstances that resulted in the findings and recognizes the opportunity to strengthen certain procedures and documentation practices. The conditions identified were limited in scope and occurred despite the existence of established policies, oversight processes, and monitoring activities designed to promote compliance with applicable federal requirements.
Item 2025.002 - Reporting Recommendation The Organization should establish controls to ensure all accounting records are analyzed and proper support is available in order to ensure that the reports are accurate. Repeat Finding Not a repeat finding. Action Taken The Health Center has engaged Cambire ...
Item 2025.002 - Reporting Recommendation The Organization should establish controls to ensure all accounting records are analyzed and proper support is available in order to ensure that the reports are accurate. Repeat Finding Not a repeat finding. Action Taken The Health Center has engaged Cambire Consulting to assist in the restructure of the grant department and workflow. In addition, the Health Center converted GL accounting and grant tracking to Sage lntacct. The updated grant reporting and tracking will include workpaper for reconciliation and supporting documents for reporting.
Finding: 2025-001 Condition Found: Through testing a statistically valid sample of 25 individual patient balances, we noted one instance in which the sliding fee discount applied was inconsistent with the Organization's policy. Specifically, a contracted third-party billing company incorrectly appli...
Finding: 2025-001 Condition Found: Through testing a statistically valid sample of 25 individual patient balances, we noted one instance in which the sliding fee discount applied was inconsistent with the Organization's policy. Specifically, a contracted third-party billing company incorrectly applied a sliding fee discount to a patient account, resulting in a discount that was not consistent with the Organization's sliding fee discount policy. Individual(s) Responsible for Corrective Action: Andrew Barter, CEO Planned Corrective Action: The identified error resulted from a contracted third-party billing company applying a sliding fee discount that was inconsistent with Little Rivers Health Care's Sliding Fee Discount Program policy. Upon identification of the finding, the account was reviewed and corrected to ensure the patient received the appropriate discount. To prevent future occurrences, Little Rivers Health Care re-instituted its monthly monitoring and review procedures in May 2026. These monitoring activities had been conducted consistently through the fall of 2025 and include periodic audits of patient accounts receiving sliding fee discounts, verification of discount calculations, and oversight of third-party billing activities. Findings from these reviews are documented, and corrective action is taken promptly when discrepancies are identified. In addition, the contracted billing company has been reminded of the organization's sliding fee discount requirements and expectations for compliance. To provide ongoing oversight and validation of compliance with the Sliding Fee Discount Program, Little Rivers Health Care has also implemented quarterly review meetings involving the Billing Manager, Controller, and Chief Executive Officer. These meetings have been formally scheduled, with the first occurrence set for July 20, 2026. The quarterly reviews will evaluate monitoring results, validate adherence to policy requirements, identify trends or potential risks, and ensure continuous compliance with program requirements. Anticipated Completion Date: May 20, 2026 (Corrective action completed), for reinstatement of monthly monitoring procedures. Quarterly compliance review meetings with the Billing Manager, Controller, and CEO are scheduled to commence on July 20, 2026, and will continue on an ongoing basis as part of the Organization's continuous compliance monitoring process.
Finding: Reporting: Congressional Grants - The Organization's federal award agreement requires SF-425 Federal Financial Report and a performance report to be filed annually. The Organization did not file these reports in 2025 as required. Views of Responsible Officials and Planned Corrective Actions...
Finding: Reporting: Congressional Grants - The Organization's federal award agreement requires SF-425 Federal Financial Report and a performance report to be filed annually. The Organization did not file these reports in 2025 as required. Views of Responsible Officials and Planned Corrective Actions: Management is in agreement with this finding Below is the corrective action plan Management acknowledges that required grant reporting, including the SF-425 Federal Financial Report and annual performance report, was not submitted in accordance with the federal award agreement. This was due to a breakdown in tracking reporting deadlines and responsibilities. To address this matter, management will implement the following corrective actions: • Centralized Grant Compliance Tracking: Establish a comprehensive reporting calendar that includes all federal grant reporting requirements, due dates, and assigned responsible parties. • Assignment of Accountability: Designate a specific individual responsible for monitoring compliance with all grant reporting requirements and ensuring timely submission of required reports. • Formalized Review and Submission Process: Implement a standardized process requiring preparation, supervisory review, and documented approval of all grant-related reports prior to submission. • Periodic Compliance Monitoring: Conduct periodic (e.g., quarterly) reviews of grant agreements to confirm all reporting requirements are identified, tracked, and fulfilled. • Training and Awareness: Provide training to relevant personnel on federal grant compliance requirements, including reporting obligations and applicable deadlines. Responsible Official: Warren McLean Completion Date: June 30, 2026
Persons responsible for corrective action: Patience Teboe, Grants Administrator Corrective action planned: A) During the initial kickoff meeting for all new grants, the Grants Department will identify and document all reporting requirements, deadlines, and compliance obligations associated with the ...
Persons responsible for corrective action: Patience Teboe, Grants Administrator Corrective action planned: A) During the initial kickoff meeting for all new grants, the Grants Department will identify and document all reporting requirements, deadlines, and compliance obligations associated with the grant award. B) The Grants Department will enter all reporting deadlines into the grant management calendar system. Automated email notifications will be generated to provide timely reminders to the responsible operational manager and their direct supervisor prior to reporting due dates. C) Operational managers will be required to submit all grant reports electronically to their direct supervisor, or designated approver, for review prior to submission to the funding agency. D) The reviewing supervisor or designated approver will provide documented electronic approval (email approval will serve as evidence) to both the operational manager and the Grants Department. The Grants Department will maintain the approval documentation and update the grant management calendar to reflect completion of the reporting requirement. E) Any required report that has not received documented approval and been returned to the Grants Department at least five (5) business days prior to the reporting deadline will be escalated to the appropriate Executive-level leader and the Chief Financial Officer (CFO) for immediate follow-up. Implementation date: July 1, 2026 If you have any questions regarding the Tribe's Corrective Action Plan, please contact Chief Financial Officer, Greg Gunderson at 402-315-2760 ext. 4116 or ggunderson@poncatribe-ne.gov.
Audit Finding Reference: 2025-003 Improve Controls over Period of Performance Planned Corrective Action: The District has strengthened its grant management and closeout procedures to ensure that all expenditures charged to federal awards are incurred, processed, and paid within the applicable period...
Audit Finding Reference: 2025-003 Improve Controls over Period of Performance Planned Corrective Action: The District has strengthened its grant management and closeout procedures to ensure that all expenditures charged to federal awards are incurred, processed, and paid within the applicable period of performance. Specifically, the District will: 1. Implement a formal grant closeout checklist that includes a review of all open purchase orders, encumbrances, unpaid invoices, and outstanding obligations prior to submission of final expenditure reports. 2. Require reconciliation of grant expenditures between the Grants Office, Special Education Department, and Business Office before final grant reports are submitted. 3. Establish periodic reviews of open encumbrances throughout the year to identify outstanding obligations and ensure timely processing of invoices. 4. Designate backup personnel and document grant management procedures to ensure continuity during staffing transitions or vacancies. 5. Require supervisory review and approval of all grant closeout documentation to verify that all allowable expenditures have been recorded and reported appropriately. 6. Provide training to personnel responsible for grant administration and financial reporting regarding federal period-of-performance requirements and grant closeout procedures. Planned Implementation Date of Corrective Action: The revised grant monitoring and closeout procedures have been implemented for all active federal grants and will be fully incoiporated into the District's grant management process beginning with the current fiscal year. Person Responsible for Corrective Action: Grants Manager Signature Derek Pinto, Assistant Superintendent of Finance
Finding 1218757 (2025-002)
Material Weakness 2025
Corrective Action Plan: Effective January 2026, Pact management implemented a new process that strengthens the internal controls over the FFATA reporting to ensure the required reports are submitted within the required timeframe. The monthly report being run to capture those subaward actions that re...
Corrective Action Plan: Effective January 2026, Pact management implemented a new process that strengthens the internal controls over the FFATA reporting to ensure the required reports are submitted within the required timeframe. The monthly report being run to capture those subaward actions that require FFATA reporting has been changed to encompass 45 days to ensure that no late entries are missed when the reporting is done.
Finding 1218756 (2025-001)
Material Weakness 2025
Corrective Action Plan: Misuse of Funds – Vehicle: Pact updated its Global Vehicle Policy effective November 1, 2025. The updated Global Vehicle Policy reinforces Pact’s zero-tolerance policy. No new reports of vehicle misuse have been received since November 2025, and all the reported cases of misu...
Corrective Action Plan: Misuse of Funds – Vehicle: Pact updated its Global Vehicle Policy effective November 1, 2025. The updated Global Vehicle Policy reinforces Pact’s zero-tolerance policy. No new reports of vehicle misuse have been received since November 2025, and all the reported cases of misuse occurred prior to November 1. Pact’s updated policy complies with all applicable laws and regulations, including the organization’s internal Code of Conduct, while aligning with the objectives and scope of work for the project. Pact’s guidelines specify roles and responsibilities and role assignments; identify authorized places to obtain fuel; where to store vehicle keys; where to park vehicles; and require individuals to enter detailed records regarding the use of the vehicle into a log. Misuse of Funds – Payroll: In alignment with Pact’s core principle of continuous quality improvement, and following substantiation of the misuse in one country office, Pact developed and implemented a corrective action plan. This plan included a comprehensive quality review of existing controls to identify and address any procedural gaps in the timesheet systems to ensure the timesheet systems have a functional auditable approval trail. We have reinforced, including in Senior Management Team meetings with staff, and other trainings supervisors’ responsibility to review and verify hours worked for their staff.
Subject: Response to Financial Statement Finding 2025-01 We appreciate the opportunity to respond to the financial statement finding titled "2025-01 Material Weakness in Internal Control Over Financial Reporting and the Preparation of the Schedule of Expenditures of Federal Awards" identified in the...
Subject: Response to Financial Statement Finding 2025-01 We appreciate the opportunity to respond to the financial statement finding titled "2025-01 Material Weakness in Internal Control Over Financial Reporting and the Preparation of the Schedule of Expenditures of Federal Awards" identified in the audit report dated September 30, 2025. Finding Summary: A material weakness was identified in internal control over financial reporting and the preparation of the Schedule of Expenditures of Federal Awards (SEFA). During the audit, a prior period adjustment of $1,821,000 was required to correct beginning net position in the Plantation Yacht Harbor Marina Fund. Additionally, for the fiscal year ended September 30, 2024, certain reimbursable federal grant expenditures were not properly matched with related revenue and receivables and were not included in the SEFA. These issues indicate that controls were not sufficient to ensure all transactions were accurately identified, recorded, and reported in accordance with generally accepted accounting principles and Uniform Guidance requirements. Management Response: Management acknowledges the material weakness in internal control over financial reporting and SEFA preparation. The identified condition resulted from incomplete identification and reconciliation of grant-related activity during fiscal year 2024, which led to the omission of reimbursable expenditures and related revenues from both the financial statements and the SEFA. Upon discovery, management recorded a prior period adjustment of $1,821,000 to correct beginning net position in the Plantation Yacht Harbor Marina Fund. The related grant expenditures have been properly included in the SEFA for the fiscal year ended September 30, 2025. Management agrees with the auditor’s recommendation and recognizes the need to strengthen internal controls surrounding the identification, reconciliation, and reporting of federal grant activity. Corrective Action Plan: To address this finding and strengthen internal controls, the Village has implemented and will continue to implement the following actions: Centralized Grant Tracking The Village has established a comprehensive grant tracking log to monitor all federal and state awards, including expenditures, reimbursement status, and SEFA reporting requirements. Enhanced SEFA Preparation Controls Year-end financial reporting procedures have been strengthened to include a formalized SEFA preparation and review process. This process includes reconciliation of the grant tracking log to the general ledger and a secondary review to ensure completeness and accuracy. Improved Coordination and Training Communication between the Finance Department and grant program managers has been enhanced to ensure timely identification of grant activity. Additional training on Uniform Guidance requirements and SEFA reporting has been provided to relevant staff. These control enhancements are designed to ensure that all reimbursable grant expenditures are properly identified, recorded, and reported in both the financial statements and the SEFA. Conclusion: Management has taken corrective action to address the identified material weakness and has implemented additional controls to improve the accuracy and completeness of financial reporting and SEFA preparation. Management believes these measures will effectively mitigate the risk of similar issues occurring in the future and will continue to monitor and refine these processes to ensure ongoing compliance with applicable accounting and federal reporting requirements
Condition Holyoke Gas & Electric (HG&E) calculated indirect costs using an incorrect total direct cost base rather than the modified total direct costs required by the grant agreement and 2 C.F.R. §200.414(f). Indirect cost was calculated based on total cost, including construction and material. Cor...
Condition Holyoke Gas & Electric (HG&E) calculated indirect costs using an incorrect total direct cost base rather than the modified total direct costs required by the grant agreement and 2 C.F.R. §200.414(f). Indirect cost was calculated based on total cost, including construction and material. Corrective Action Plan Corrective Action Planned: By December 25, 2026, HG&E will implement a formal grant administration policy that clearly defines roles and responsibilities and establishes a comprehensive framework for effective grant management. In addition, HG&E will ensure that all questions related to indirect costs and other compliance requirements are confirmed in writing. HG&E believes this approach will significantly reduce the risk of future reporting errors. Names of Contact Persons Responsible for Corrective Action: Brooke McMahon – 413-536-9318 Bill Sullivan - 413-536-9523 99 Suffolk Street Holyoke, MA 01040 Anticipated Completion Date: The Corrective Action Plan will be implemented by December 31, 2026
Finding 2025-061 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC), ALN 93.323 and Block Grants for Prevention and Treatment of Substance Abuse, ALN 93.959 Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS is actively pursuing the implementation of an A...
Finding 2025-061 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC), ALN 93.323 and Block Grants for Prevention and Treatment of Substance Abuse, ALN 93.959 Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS is actively pursuing the implementation of an API for the submission of FFATA data to the federal system, SAM, to improve both timeliness and accuracy through automation. This API will connect EGrAMS with SAM, enabling backend communication between the systems and allowing SAM to automatically retrieve data directly from EGrAMS. To ensure accurate reporting until the API is established, MDHHS will continue reviewing validation errors when submitting web-based information to SAM and will work with the SAM federal helpline to report federal system issues and identify interim alternatives to submit the required data. Also, MDHHS implemented an enhancement in August 2025 that validates federal funding sources in EGrAMS against their effective dates, reducing coding errors and improving data reliability. In addition, the query used to obtain certain FFATA data elements was modified during fiscal year 2026 to improve accuracy of reporting. Anticipated Completion Date December 31, 2027 Responsible Individual(s) Matt Blackburn, MDHHS Jeanette Hensler, MDHHS Rebecca Jones, MDHHS
Finding 2025-016 Medicaid Cluster, ALN 93.775, 93.777, and 93.778 and Children's Health Insurance Program, ALN 93.767 - Refunding of Federal Share of Overpayments Management Views MDHHS agrees with the finding. Planned Corrective Action For part a., MDHHS will evaluate and enhance the current proces...
Finding 2025-016 Medicaid Cluster, ALN 93.775, 93.777, and 93.778 and Children's Health Insurance Program, ALN 93.767 - Refunding of Federal Share of Overpayments Management Views MDHHS agrees with the finding. Planned Corrective Action For part a., MDHHS will evaluate and enhance the current process to ensure all overpayment-related receivables are timely and accurately reported for inclusion in the quarterly statement of expenditures reports (CMS 64 and CMS 21 reports). For part b., MDHHS will implement a review process to verify that all manually entered federal medical assistance percentage (FMAP) rates for CHAMPS receivables are accurate. Additionally, MDHHS will evaluate and enhance current procedures to ensure the date of payment is consistently entered to generate the correct FMAP rate for all overpayments within the Adult Services Authorized Payments system. Anticipated Completion Date September 30, 2027 Responsible Individual(s) Rebecca Jones, MDHHS Darryl Walker, MDHHS Jessica Moy, MDHHS Shemin Blundell, MDHHS Michelle Popowich, MDHHS
Finding 2025-011 MDHHS - FFATA Reporting Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS is actively pursuing the implementation of an application programming interface (API) for the submission of the Federal Funding Accountability and Transparency Act (FFATA) data to...
Finding 2025-011 MDHHS - FFATA Reporting Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS is actively pursuing the implementation of an application programming interface (API) for the submission of the Federal Funding Accountability and Transparency Act (FFATA) data to the federal system, the System for Award Management (SAM), to improve both timeliness and accuracy through automation. This API will connect the Electronic Grants Administration and Management System (EGrAMS) with SAM, enabling backend communication between the systems and allowing SAM to automatically retrieve data directly from EGrAMS. To ensure accurate reporting until the API is established, MDHHS will continue reviewing validation errors when submitting web-based information to SAM and will work with the SAM federal helpline to report federal system issues and identify interim alternatives to submit the required data. Also, MDHHS implemented an enhancement in August 2025 that validates federal funding sources in EGrAMS against their effective dates, reducing coding errors and improving data reliability. In addition, MDHHS modified the query used to obtain certain FFATA data elements during fiscal year 2026 to improve accuracy of reporting. Anticipated Completion Date December 31, 2027 Responsible Individual(s) Matt Blackburn, MDHHS Jeanette Hensler, MDHHS Rebecca Jones, MDHHS
Finding 2025-055 Social Services Block Grant, ALN 93.667 - Post-Expenditure Report Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS is modifying the process to obtain the required post-expenditure report data to ensure all individuals receiving Social Services Block Gr...
Finding 2025-055 Social Services Block Grant, ALN 93.667 - Post-Expenditure Report Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS is modifying the process to obtain the required post-expenditure report data to ensure all individuals receiving Social Services Block Grant supported services are appropriately included. Also, MDHHS will add a program validation step to review the applicable federal regulations and confirm the data extracted is accurate and complete. In addition, MDHHS will revise and resubmit the fiscal year 2025 report by September 30, 2026. Anticipated Completion Date September 30, 2026 Responsible Individual(s) Tiffany Clarke, MDHHS Rebecca Jones, MDHHS Mary Lou Mahoney, MDHHS Aimee McDaniel, MDHHS
Finding 2025-020 Foster Care Title IV-E, ALN 93.658 and Adoption Assistance, ALN 93.659 - Accuracy of Financial Reports Management Views MDHHS disagrees with the finding. The expenditures noted were recorded through MDHHS’s normal, federally approved Public Assistance Cost Allocation Plan cost alloc...
Finding 2025-020 Foster Care Title IV-E, ALN 93.658 and Adoption Assistance, ALN 93.659 - Accuracy of Financial Reports Management Views MDHHS disagrees with the finding. The expenditures noted were recorded through MDHHS’s normal, federally approved Public Assistance Cost Allocation Plan cost allocation process. As part of this process, certain administrative costs are not identifiable or allocable to federal programs until the allocation is completed. At that point, MDHHS recognizes these costs as expenditures in the CB-496 report in the quarter in which the allocation occurs and the costs are assigned to the grant. Consistent with this approach, MDHHS has historically reported these amounts as current quarter expenditures. MDHHS previously consulted with the U.S. Department of Health and Human Services (HHS) Administration for Children and Families (ACF) on the appropriate use of the prior quarter adjustment column, and MDHHS was verbally instructed to no longer record these administrative costs as adjustments since this is part of the normal cost allocation process. ACF approves the CB-496 reports in the federal system and ensures the final award amount reconciles with the amounts reported. This approval process supports the reporting approach used by MDHHS is both consistent with prior guidance and accepted by ACF through its approval and award process. Planned Corrective Action Although MDHHS disagrees with the finding, MDHHS sought written guidance from ACF and will follow up to obtain clarification on the appropriate reporting of administrative costs. Anticipated Completion Date September 30, 2026 Responsible Individual(s) Rebecca Jones, MDHHS
Finding 2025-049 Refugee and Entrant Assistance State/Replacement Designee Administered Programs, ALN 93.566 - FFATA Reporting Management Views LEO agrees with the finding. LEO is fully committed to improving its FFATA process. It is LEO’s position that the switch from the FFATA Subaward Reporting S...
Finding 2025-049 Refugee and Entrant Assistance State/Replacement Designee Administered Programs, ALN 93.566 - FFATA Reporting Management Views LEO agrees with the finding. LEO is fully committed to improving its FFATA process. It is LEO’s position that the switch from the FFATA Subaward Reporting System to SAM for FFATA reporting in March 2025 contributed to some of the cited deficiencies. Planned Corrective Action The LEO Finance Division is currently working with the LEO Grants Division to determine a better process of notification for new subawards and amendments so that they can be reported within the required timeframe. The process will be documented in an updated formal procedure which focuses on timely communication as the primary control and SIGMA Business Intelligence queries as a secondary control to ensure completeness of reporting. Anticipated Completion Date June 30, 2026 Responsible Individual(s) Heidi Parker, LEO Chris Johnson, LEO
Finding 2025-044 Temporary Assistance for Needy Families, ALN 93.558 - Inappropriate TANF-Funded Emergency Foster Care Assistance Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS redetermined the Foster Care Title IV-E (Title IV-E) eligibility after the birth certifica...
Finding 2025-044 Temporary Assistance for Needy Families, ALN 93.558 - Inappropriate TANF-Funded Emergency Foster Care Assistance Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS redetermined the Foster Care Title IV-E (Title IV-E) eligibility after the birth certificate was received and the youth was determined to be Title IV-E eligible. MDHHS has already reclassified the funds to the appropriate funding source, allowing the department to claim Title IV-E for the eligible placement, and repaying any TANF overpayments. Reconciliations between different fund sources, or recoupments for overpayments, will be created within 30 calendar days of receipt of supporting documentation and approved timely by management. All recoupment and reconciliation records will be approved by management no later than September 30 each fiscal year to ensure compliance with year-end requirements. Anticipated Completion Date September 30, 2026 Responsible Individual(s) Nancy Berger, MDHHS
Finding 2025-034 CCDF Cluster, ALN 93.575 and 93.596 - FFATA Reporting Management Views MiLEAP agrees with the finding. Planned Corrective Action MiLEAP implemented a process for FFATA reporting in September 2025 and also hired additional staff in fiscal year 2026 who are responsible for reporting r...
Finding 2025-034 CCDF Cluster, ALN 93.575 and 93.596 - FFATA Reporting Management Views MiLEAP agrees with the finding. Planned Corrective Action MiLEAP implemented a process for FFATA reporting in September 2025 and also hired additional staff in fiscal year 2026 who are responsible for reporting required FFATA data for all federal grants to ensure subaward information is reported timely. Anticipated Completion Date Completed Responsible Individual(s) Lora MacKay, MiLEAP Dawn Lake, MiLEAP
Finding 2025-060 Coronavirus Capital Projects Fund, ALN 21.029 Management Views LEO agrees with the finding. Planned Corrective Action The LEO Finance Division and the LEO Grants Division have identified the deficiencies that led to the audit finding. LEO will correct the internal FFATA reporting pr...
Finding 2025-060 Coronavirus Capital Projects Fund, ALN 21.029 Management Views LEO agrees with the finding. Planned Corrective Action The LEO Finance Division and the LEO Grants Division have identified the deficiencies that led to the audit finding. LEO will correct the internal FFATA reporting process to ensure that new and amended subaward contract information is received by the LEO Finance Division in a timely manner and in accordance with FFATA requirements. LEO will utilize the EGrAMS vendor to update software functionality that will generate an email notification to the LEO Finance Division when a grant agreement is finalized or amended. This notification will ensure communication with the LEO Finance Division occurs in a timely manner and in accordance with FFATA requirements. Anticipated Completion Date June 30, 2026 Responsible Individual(s) Jennifer Duffey, LEO Heidi Parker, LEO
Finding 2025-059 Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and COVID-19 Airports Programs, ALN 20.106 Management Views MDOT agrees that it did not ensure revenues and program income generated by non-commercial airports were expended for airport capital or operatin...
Finding 2025-059 Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and COVID-19 Airports Programs, ALN 20.106 Management Views MDOT agrees that it did not ensure revenues and program income generated by non-commercial airports were expended for airport capital or operating costs, the local airport system, or other local facilities. Planned Corrective Action MDOT will review existing procedures, including the MDOT Office of Aeronautics Project Manager/Engineering Manual and block grant conditions, to assess whether updates are needed and if resources will be prioritized to help ensure monitoring and oversight efforts are performed relating to revenue and program income requirements. Anticipated Completion Date September 30, 2026 Responsible Individual(s) Bryan Budds, MDOT
Finding 2025-058 Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and COVID-19 Airports Programs, ALN 20.106 Management Views MDOT agrees that it did not ensure weekly certified payrolls were obtained from contractors. Planned Corrective Action MDOT will provide training...
Finding 2025-058 Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and COVID-19 Airports Programs, ALN 20.106 Management Views MDOT agrees that it did not ensure weekly certified payrolls were obtained from contractors. Planned Corrective Action MDOT will provide training and guidance to pertinent staff to help ensure contract compliance and that weekly certified payrolls are obtained from contractors. In addition, MDOT will review existing procedures to assess whether updates are needed. Anticipated Completion Date September 30, 2026 Responsible Individual(s) Bryan Budds, MDOT
Finding 2025-057 Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and COVID-19 Airports Programs, ALN 20.106 Management Views MDOT agrees that policies and procedures should be implemented to ensure that equipment and real property purchased with federal funds is properl...
Finding 2025-057 Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and COVID-19 Airports Programs, ALN 20.106 Management Views MDOT agrees that policies and procedures should be implemented to ensure that equipment and real property purchased with federal funds is properly tracked, recorded, and safeguarded. Planned Corrective Action MDOT will work with the Federal Aviation Administration to address variances between the Uniform Guidance requirements and program guidance so that policies and procedures can be updated as necessary. Anticipated Completion Date September 30, 2026 Responsible Individual(s) Bryan Budds, MDOT
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