Finding Number 2023-051 Subject Heading (Financial) or AL no. and program name (Federal) ALN: 21.027 Federal Program name: Coronavirus State And Local Fiscal Recovery Funds (CSLFRF) Planned Corrective Action Management Response The Oklahoma Office of Management and Enterprise Services – Grants Manag...
Finding Number 2023-051 Subject Heading (Financial) or AL no. and program name (Federal) ALN: 21.027 Federal Program name: Coronavirus State And Local Fiscal Recovery Funds (CSLFRF) Planned Corrective Action Management Response The Oklahoma Office of Management and Enterprise Services – Grants Management Office (OMES-GMO) agrees with the finding that additional internal controls were needed during FY23 to ensure accurate and complete quarterly reporting to the U.S. Department of the Treasury. OMESGMO also acknowledges that the identified state agencies required improved segregation of duties when preparing and submitting FY23 Quarterly Project and Expenditure Reports to OMES-GMO. During the COVID-19 pandemic, states across the country faced numerous operational and compliance challenges, including frequently changing federal guidance and firsttime handling of federal funds. In response to the growing complexity of managing multiple federal funding programs, OMES established the Grants Management Office (OMESGMO). However, in its initial phase, the OMES-GMO experienced consistent instability with a high frequency of employee turnover, understaffing, limited resources, restricted internal controls, and practiced leadership. Since then, OMES-GMO has taken steps to stabilize operations by maintaining consistent leadership, hiring additional staff, and the uniform application of organizational processes. These improvements have strengthened internal controls and enhanced divisional processes to ensure compliance with federal reporting policies and procedures. With its expanded capacity, OMESGMO has initiated a comprehensive review of all SLFRF reporting submitted to the U.S. Treasury since the inception of the program. Corrective Actions •Reconciliation of Treasury Reporting OMES-GMO is conducting a comparative analysis between expenditures recorded in PeopleSoft and those submitted by state agencies. It is actively working with each agency to reconcile any discrepancies. Moving forward, OMES-GMO will implement Standard Operating Procedures (SOPs) requiring its partner agencies and their staff to reconcile reported expenditures at least monthly—but no less than quarterly—with the State of Oklahoma’s Statewide Accounting System. Any identified variances will be reviewed and resolved prior to submission to the U.S. Department of the Treasury. •Process Improvements OMES-GMO will issue formal guidance to its partner agencies requiring a thorough review of the Summary of Receipts and Disbursements (SRD), six-digit data reports, and payroll records for class fund 497 (and fund 488 for agency 090). These data sources must be reconciled with Treasury reporting. Agencies will also be required to document their internal review and approval processes to ensure appropriate segregation of duties between the report preparer and the designated reviewer and/or approver. •Guidance and System Enhancements OMES-GMO will continue to provide guidance to further other agency staff’s understanding of compliance with federal Treasury reporting requirements. Additionally, OMES-GMO is evaluating enhancements to the State of Oklahoma’s grants management platform to support improved workflows for data submission, internal approvals, and the capture of audit documentation. These corrective actions reflect OMES-GMO’s ongoing commitment to strengthening internal controls, enhancing data accuracy, and maintaining compliance with federal grant requirements. Anticipated Completion Date 9/30/2025 Responsible Contact Person Parker Wise