Corrective Action Plans

Finding 1154305 (2023-033)

Material Weakness 2023

OK

Special Tests & Provisions Questioned Costs Allowable Costs / Cost Principles § 200.1

Finding Number 2023-033 Subject Heading (Financial) or AL no. and program name (Federal) #17.225 Unemployment Insurance Planned Corrective Action OESC concurs with the audit finding and agrees with the recommendation. The decrease in the total dollars associated with this finding in comparison to th...

Finding Number 2023-033 Subject Heading (Financial) or AL no. and program name (Federal) #17.225 Unemployment Insurance Planned Corrective Action OESC concurs with the audit finding and agrees with the recommendation. The decrease in the total dollars associated with this finding in comparison to the prior year demonstrates that the issue has been addressed with the programming that was completed in February 2023. The agency will continue to monitor ongoing results of the new programming to address any further adjustments needed for edge-case scenarios or to appropriately handle other system changes. Anticipated Completion Date Completed in February 2023 Responsible Contact Person Christopher O’Brien, Vice President - OESC UI

View Audit 367158

Finding 1154304 (2023-031)

Material Weakness 2023

Oklahoma Water Resources Board

OK

Subrecipient Monitoring Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303 § 200.334

Finding Number 2023-031 Subject Heading (Financial) or AL no. and program name (Federal) #17.225 Unemployment Insurance Planned Corrective Action OESC concurs with the audit finding and agrees with the recommendation. The agency also acknowledges the importance of data integrity in submitting the ET...

Finding Number 2023-031 Subject Heading (Financial) or AL no. and program name (Federal) #17.225 Unemployment Insurance Planned Corrective Action OESC concurs with the audit finding and agrees with the recommendation. The agency also acknowledges the importance of data integrity in submitting the ETA 9050, ETA 9052 and ETA 9055 reports. Programming was completed in June 2023 to retain backup of the detailed data at the time each report is run. As part of OESC’s technology modernization efforts, technical resources continue to review reporting requirements for all regulatory reports and validate the accuracy of programming that supports such reporting. DOL completed a Data Validation monitoring of OESC in May 2024, and the DOL reviewers shared favorable comments regarding OESC’s modernization efforts, and the agency was able to satisfy DOL with regard to the area of concern and finding identified in their review. OESC leadership expects to address the underlying causes for this finding as part of our modernization efforts. Anticipated Completion Date Programming completed in June 2023 to retain backup data; data validation for regulatory reports is ongoing as part of OESC technology modernization efforts. Responsible Contact Person Michelle Britten, Chief Administrative Officer

View Audit 367158

Finding 1154297 (2023-210)

Material Weakness 2023

Oklahoma Water Resources Board

OK

Allowable Costs / Cost Principles Procurement, Suspension & Debarment Reporting

Finding Number 2023-210 Subject Heading (Financial) or AL no. and program name (Federal) 12.401: National Guard Military Operations and Maintenance Projects Program Planned Corrective Action OMD agrees with the auditors’ finding that OMD did not always use the proper state expenditure codes on const...

Finding Number 2023-210 Subject Heading (Financial) or AL no. and program name (Federal) 12.401: National Guard Military Operations and Maintenance Projects Program Planned Corrective Action OMD agrees with the auditors’ finding that OMD did not always use the proper state expenditure codes on construction purchase orders (PO); however, the total PO amounts were correct. Since being made aware of this issue, the CFO has taken action to update the Certified Procurement Officers’ procedures when processing Construction Management or Design Build Purchase Orders. Rather than increasing the distribution line for architectural and engineering (A&E) costs, the Certified Procurement Officer will add a new distribution line to the PO to identify the construction or renovation costs separately from A&E costs. The CFO will periodically review these construction POs to confirm the proper use of expenditure codes as well as improve the accuracy of the OMD’s financial reporting. Anticipated Completion Date Immediately Responsible Contact Person Angela Tackett, CFO

View Audit 367158

Finding 1154292 (2023-038)

Material Weakness 2023

Oklahoma Water Resources Board

OK

Subrecipient Monitoring Allowable Costs / Cost Principles Questioned Costs § 200.303

Finding Number 2023-038 Subject Heading (Financial) or AL no. and program name (Federal) CN CLUSTER – SCHOOL BREAKFAST PROGRAM; NATIONAL SCHOOL LUNCH PROGRAM, SPECIAL MILK PROGRAM FOR CHILDREN, FRESH FRUITS AND VEGETABLES PROGRAM AL #10.553, 10.555; 10.556; 10.559; 10.582 Planned Corrective Action A...

Finding Number 2023-038 Subject Heading (Financial) or AL no. and program name (Federal) CN CLUSTER – SCHOOL BREAKFAST PROGRAM; NATIONAL SCHOOL LUNCH PROGRAM, SPECIAL MILK PROGRAM FOR CHILDREN, FRESH FRUITS AND VEGETABLES PROGRAM AL #10.553, 10.555; 10.556; 10.559; 10.582 Planned Corrective Action Additional training of field-based staff will take place covering the areas of the SFSP review to ensure that meal counts and claim numbers are correct. A SFSP review will not be conducted prior to a claim being filed unless the SFSP program ends prior to a claim being filed. USDA guidance “encourages” a claim review to be conducted when an SFSP review is being conducted. If a sponsor operates for a month or less the review must take place while the program is operating therefore a claim would not be able to be validated. Anticipated Completion Date May 2025 (once SFSP reviews start for summer 2025) Responsible Contact Person Jennifer Weber

View Audit 367158 Questioned Costs: $1

Finding 1154291 (2023-015)

Material Weakness 2023

Oklahoma Water Resources Board

OK

Special Tests & Provisions Questioned Costs Subrecipient Monitoring § 200.303

Finding Number 2023-015 Subject Heading (Financial) or AL no. and program name (Federal) CN CLUSTER – SCHOOL BREAKFAST PROGRAM; NATIONAL SCHOOL LUNCH PROGRAM, SPECIAL MILK PROGRAM FOR CHILDREN, FRESH FRUITS AND VEGETABLES PROGRAM AL #10.553, 10.555; 10.556; 10.559; 10.582 Planned Corrective Action W...

Finding Number 2023-015 Subject Heading (Financial) or AL no. and program name (Federal) CN CLUSTER – SCHOOL BREAKFAST PROGRAM; NATIONAL SCHOOL LUNCH PROGRAM, SPECIAL MILK PROGRAM FOR CHILDREN, FRESH FRUITS AND VEGETABLES PROGRAM AL #10.553, 10.555; 10.556; 10.559; 10.582 Planned Corrective Action We will update our 3-month Operating Excess form we send to schools to include more information. Any schools that are going to carryover part or all of their excess funds will need to provide us an explanation of what those funds will be spent on and then comments will be made on the log so we follow-up with the school to ensure allowable items were purchased. If they are using the excess for salaries and/or the cost of serving all students free they will need to let us know that in writing as well. Anticipated Completion Date June 2, 2025 Responsible Contact Person Jennifer Weber

View Audit 367158

Finding 1154253 (2023-007)

Material Weakness 2023

Oklahoma Water Resources Board

OK

Questioned Costs Reporting Matching / Level of Effort / Earmarking

Finding Number 2023-007 Subject Heading (Financial) or AL no. and program name (Federal) 10.542 – Pandemic EBT – Food Benefits Planned Corrective Action In February 2025, the Oklahoma SNAP unit transitioned to new leadership with the appointment of a new Program Administrator (PA). During the transi...

Finding Number 2023-007 Subject Heading (Financial) or AL no. and program name (Federal) 10.542 – Pandemic EBT – Food Benefits Planned Corrective Action In February 2025, the Oklahoma SNAP unit transitioned to new leadership with the appointment of a new Program Administrator (PA). During the transition, previous issues related to the FNS 292B report were identified and addressed. New procedures have been implemented to ensure future reports are accurate and properly reviewed. Moving forward: • The SNAP Program Field Representative will enter the data for the FNS 292B report and notify the Program Administrator once the report is completed. • The Program Administrator will then review the data and information entered for accuracy. • After confirming the information is correct, the Program Administrator will certify the report in FPRs as appropriate. The new Program Administrator has access to FPRs and is authorized to certify the data. These steps have been put in place to ensure the integrity and timeliness of the FNS 292B report moving forward. Anticipated Completion Date Already completed Responsible Contact Person Amy Roberts

View Audit 367158

Finding 1154214 (2023-003)

Material Weakness 2023

City of McKeesport

PA

Allowable Costs / Cost Principles Questioned Costs Procurement, Suspension & Debarment § 200.1 § 200.339

CONDITION: The City of McKeesport inadvertently charged as eligible expenditures two (2) purchases totaling $144,000 on the third quarter financial report required to be filed with the Department of Treasury that had already been claimed as eligible expenditures in the second quarter financial repor...

CONDITION: The City of McKeesport inadvertently charged as eligible expenditures two (2) purchases totaling $144,000 on the third quarter financial report required to be filed with the Department of Treasury that had already been claimed as eligible expenditures in the second quarter financial report. CRITERIA: Section 2 CFR 200.1 of the Uniform Guidance defines a disallowed cost as a charge to a Federal Award that is determined to be unallowable under the Award’s terms, which would include duplicate payments. Section 2 CFR 200.339 of the Uniform Guidance gives the federal agency the authority to disallow costs if the recipient fails to comply with the aforementioned Award terms and conditions. MANAGEMENT’S CORRECTIVE ACTION PLAN: Management of the City will reallocate the two vendor payments totaling $144,000 which were inadvertently duplicated in the financial reports required to be submitted to the Department of Treasury. The $144,000 in duplicate payments will be reallocated for eligible road salt purchases made during calendar year 2023.

View Audit 367135

Finding 1154213 (2023-002)

Material Weakness 2023

City of McKeesport

PA

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Reporting § 200.403

CONDITION: During the calendar year 2023, the City did not utilize a formal general ledger system of accounting to track the financial activity (financial position and results of operations) for several ‘Funds’ held at the City. The activity of these funds is either 1) maintained in spreadsheet fash...

CONDITION: During the calendar year 2023, the City did not utilize a formal general ledger system of accounting to track the financial activity (financial position and results of operations) for several ‘Funds’ held at the City. The activity of these funds is either 1) maintained in spreadsheet fashion similar to a checkbook used in personal finances, 2) recorded partially (expenses only with no revenue), or 3) not tracked at all. As these funds are not maintained using the City’s accounting software package, management does not have the ability to efficiently generate financial reports necessary to provide management with the proper fiscal oversight. This condition included the American Rescue Plan Act (ARPA) funding known as the Coronavirus State and Local Fiscal Recovery Fund. However, it should be noted that City personnel were able to prepare spreadsheets to document which expenditures were utilized to prepare the necessary quarterly reporting requirements to the Department of Treasury. This is a repeat finding (2022-002) from the prior year. CRITERIA: Prudent internal control procedures in the areas of general ledger management and financial reporting include maintaining a formal general ledger system of accounting to track the activity of all ‘Funds’ maintained by the City. In specific as it relates to federal programs, Section 2 CFR 200.403(g) of the Uniform Guidance requires that federal costs must be adequately documented which would include the maintaining of a formal general ledger system of accounting for all ‘Funds’ of the City. MANAGEMENT’S CORRECTIVE ACTION PLAN: Management of the City will assess the current workload and expertise of the City’s business office personnel in an effort to determine a feasible timeframe to continue the process of creating a formal general ledger system of accounting for all City ‘Funds’ that are not already entered into the software accounting system. The timeframe for completion of this review will occur during the first nine months of calendar year 2025 with the intention of having the City be in full compliance with Section 2 CFR 200.403(g) of the Uniform Guidance which requires federal costs to be adequately documented which would include the maintaining of a formal general ledger system of accounting for all ‘Funds’ of the City.

View Audit 367135

Finding 1154212 (2023-001)

Material Weakness 2023

City of McKeesport

PA

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Reporting § 200.403

CONDITION: During the calendar year 2023, the City did not record the necessary adjustments to the various ‘Fund’ general ledgers of the City to properly reconcile the balance sheet accounts, such as cash, receivables, payables, and payroll-related liabilities to the underlying supporting documentat...

CONDITION: During the calendar year 2023, the City did not record the necessary adjustments to the various ‘Fund’ general ledgers of the City to properly reconcile the balance sheet accounts, such as cash, receivables, payables, and payroll-related liabilities to the underlying supporting documentation available at the City (which includes reconciliations of cash prepared independently by City personnel but do not agree to amounts reported in the various general ledgers). This included ‘Funds” containing significant federal funding such as the City’s Community Development Block Grant (CDBG) Program and American Rescue Plan Act (ARPA) funding known as the Coronavirus State and Local Fiscal Recovery Fund. As a result, the financial position and results of operations as shown throughout the calendar year were inaccurately stated. However, it should be noted that the Community Development Department of the City and other City personnel maintain separate financial reporting for these federal funds, independent of the aforementioned ‘Fund’ general ledgers sufficient to ascertain the revenues and expenditures of the federal programs. This is a repeat finding (2022-001) for the prior year. CRITERIA: Prudent internal control procedures in the areas of general ledger management and financial reporting include the reconciliation of all general ledger account balances to underlying supporting documentation monthly with independent oversight and approval as part of the process. In specific as it relates to federal programs, Section 2 CFR 200.403(g) of the Uniform Guidance requires that federal costs must be adequately documented which would include the applicable general ledgers of the City. MANAGEMENT’S CORRECTIVE ACTION PLAN: Management of the City will review the recommended options as presented by the Audit Firm’s recommendation for feasibility considering current manpower, expertise, and budgetary constraints. In addition, the City plans to ensure that written procedures for all accounting functions are implemented, reviewed and updated as necessary with the objective of ensuring that all balance sheet account balances are supported by the underlying documentation available at the City. The timeframe for completion of this review will occur during the first nine months of calendar year 2025 with the intention of having the City be in full compliance with Section 2 CFR 200.403(g) of the Uniform Guidance which requires federal costs to be adequately documented which would include the applicable general ledgers of the City.

View Audit 367135

Finding 1154205 (2023-005)

Material Weakness 2023

City of Chickasha, Oklahoma

OK

Reporting

The City will attempt to file all future reporting packages in accordance with 2 CFR 200.

View Audit 367131

Finding 1154170 (2023-008)

Material Weakness 2023

Central Iowa Juvenile Detention Center

IA

Reporting Internal Control / Segregation of Duties

The Center will ensure reports are completed, reviewed and sent according to contract guidelines.

View Audit 367091

Finding 1154084 (2023-046)

Material Weakness 2023

State of Illinois

IL

Subrecipient Monitoring Reporting § 200.303

Finding Number: 2023-046 Finding Name: Untimely Review of Subrecipient Performance Reports Finding Condition(s): The Illinois State Board of Education (ISBE) did not review subrecipient performance reports in a timely manner according to its program monitoring policies and procedures for subrecipien...

Finding Number: 2023-046 Finding Name: Untimely Review of Subrecipient Performance Reports Finding Condition(s): The Illinois State Board of Education (ISBE) did not review subrecipient performance reports in a timely manner according to its program monitoring policies and procedures for subrecipients of the Education and Stabilization Fund - Elementary and Secondary Education (ESF) program for fiscal year 2023. Name of Contact Person(s): • Denise Blaney, Director – Illinois State Board of Education, Title Grant Administration Department • Lazell Logan, Supervisor – Illinois State Board of Education, Title Grant Administration Department • Annie Brooks, Executive Director – Illinois State Board of Education, Regulatory Services Corrective Action(s): To ensure proper review procedures are performed in a timely manner in accordance with its program monitoring policies and procedures, ISBE’s Title Grant Administration Department started to send bi-weekly lists of submitted, past due, and disapproved Grant Periodic Reports (GPRS) to each applicable ISBE department. The Title Grant Administration Department analyzes the GPRS reports and prioritizes reviews based on submission dates. The Title Grant Administration Department also has trained team members to assist with the review process. Proposed Completion Date: October 31, 2024 – Completed

View Audit 366965

Finding 1154075 (2023-044)

Material Weakness 2023

State of Illinois

IL

Reporting Matching / Level of Effort / Earmarking Subrecipient Monitoring § 200.303

Finding Number: 2023-044 Finding Name: Inaccurate Information Included in the Financial Reports Finding Condition(s): The Illinois Department of Transportation (IDOT) did not prepare accurate federal financial status reports for the Airport Improvement Program. Name of Contact Person(s): • Melanie Q...

Finding Number: 2023-044 Finding Name: Inaccurate Information Included in the Financial Reports Finding Condition(s): The Illinois Department of Transportation (IDOT) did not prepare accurate federal financial status reports for the Airport Improvement Program. Name of Contact Person(s): • Melanie Quinn, Contracts Section Manager – Illinois Department of Transportation, Division of Aeronautics • Joe Segobiano, Bureau Chief of Administrative Services – Illinois Department of Transportation, Division of Aeronautics Corrective Action(s): IDOT is working to fully staff and train the Contracts Section of the Division of Aeronautics to ensure reporting is completed as required. Proposed Completion Date: June 30, 2026

View Audit 366965

Finding 1154071 (2023-042)

Material Weakness 2023

State of Illinois

IL

Reporting § 200.303 § 200.502 § 200.510

Finding Number: 2023-042 Finding Name: Inaccurate Reporting of Federal Expenditures Finding Condition(s): The Illinois Department of Employment Security (IDES) did not accurately report Federal expenditures under the Unemployment Insurance (UI) program. Name of Contact Person(s): Kelly McGrath, Mana...

Finding Number: 2023-042 Finding Name: Inaccurate Reporting of Federal Expenditures Finding Condition(s): The Illinois Department of Employment Security (IDES) did not accurately report Federal expenditures under the Unemployment Insurance (UI) program. Name of Contact Person(s): Kelly McGrath, Manager of Accounting and Reporting – Illinois Department of Employment Security, Accounting and Reporting Corrective Action(s): The IDES has worked with its bank to address one of the underlying issues that prompted these adjustments and has updating its procedures for its GAAP package preparation. The IDES reviewed and considered this finding when preparing its fiscal year 2024 GAAP package. Proposed Completion Date: March 31, 2025 – Completed

View Audit 366965

Finding 1154067 (2023-041)

Material Weakness 2023

State of Illinois

IL

Reporting Subrecipient Monitoring Internal Control / Segregation of Duties § 200.303

Finding Number: 2023-041 Finding Name: Inadequate Process for Preparing ETA 2208A Special Report Finding Condition(s): The Illinois Department of Employment Security (IDES) does not have an adequate process in place to ensure the ETA 2208A special reports prepared for the Unemployment Insurance (UI)...

Finding Number: 2023-041 Finding Name: Inadequate Process for Preparing ETA 2208A Special Report Finding Condition(s): The Illinois Department of Employment Security (IDES) does not have an adequate process in place to ensure the ETA 2208A special reports prepared for the Unemployment Insurance (UI) program are complete and accurate. Name of Contact Person(s): • Linette Hughes, Budget Director – Illinois Department of Employment Security, Office of the Budget • Belinda Moreno, State Budget Manager – Illinois Department of Employment Security, Office of the Budget • Anna Hrynewycz, Federal Budget Manager – Illinois Department of Employment Security, Office of the Budget Corrective Action(s): The IDES hired additional budget staff to aid in compiling and checking the reports to ensure complete and accurate reporting. Additionally, the IDES created and approved written procedures for the completion of the reports. Proposed Completion Date: July 1, 2024 - Completed

View Audit 366965

Finding 1154063 (2023-040)

Material Weakness 2023

State of Illinois

IL

Questioned Costs Subrecipient Monitoring Reporting § 200.303

Finding Number: 2023-040 Finding Name: Inadequate Process for Preparing ETA 9130 Financial Reports Finding Condition(s): The Illinois Department of Employment Security (IDES) does not have an adequate process in place to ensure that the ETA 9130 financial reports prepared for the Unemployment Insura...

Finding Number: 2023-040 Finding Name: Inadequate Process for Preparing ETA 9130 Financial Reports Finding Condition(s): The Illinois Department of Employment Security (IDES) does not have an adequate process in place to ensure that the ETA 9130 financial reports prepared for the Unemployment Insurance (UI) program are complete and accurate. Name of Contact Person(s): • Kelly McGrath, Manager of Accounting and Reporting – Illinois Department of Employment Security, Accounting and Reporting • Briant Coombs, Manager of Accounting Service – Illinois Department of Employment Security, Accounting and Reporting Corrective Action(s): The IDES’ accounting staff will review its reporting procedures and determined ways to improve its controls over its reporting preparation, reviews, and approvals. Furthermore, the IDES will hire additional staff to aid in the ETA 9130 reporting process. Additionally, the IDES will look for ways to strengthen its internal controls over multiple IDES departments to ensure the data is complete and accurate. Finally, the IDES anticipates that, in coordination with the Illinois Department of Innovation and Technology (DoIT), the IDES’ reporting tools will be improved and/or modernized. Proposed Completion Date: December 31, 2025

View Audit 366965

Finding 1154041 (2023-031)

Material Weakness 2023

State of Illinois

IL

Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Questioned Costs § 200.303

Finding Number: 2023-031 Finding Name: Inaccurate Special Report Finding Condition(s): The Illinois Department of Commerce and Economic Opportunity (DCEO) did not maintain supporting documentation for key line items or prepare accurate special reports for the Low-Income Home Energy Assistance Progra...

Finding Number: 2023-031 Finding Name: Inaccurate Special Report Finding Condition(s): The Illinois Department of Commerce and Economic Opportunity (DCEO) did not maintain supporting documentation for key line items or prepare accurate special reports for the Low-Income Home Energy Assistance Program (LIHEAP). Additionally, the DCEO has not established appropriate internal controls to ensure its quarterly reports submitted to USDHHS are properly supported in accordance with federal requirements. Finally, the DCEO’s supervisory review procedures have not been designed to operate at a level of precision to identify errors of the size and nature noted above. Name of Contact Person(s): Ben Moore, Fiscal Operations Manager – Illinois Department of Commerce and Economic Opportunity, Office of Community Assistance Corrective Action(s): The DCEO’s Office of Community Assistance (OCA) has implemented a process for an independent verification by a second OCA staff member of the correct data entry prior to submission of obligated funds for all future LIHEAP quarterly reports. Proposed Completion Date: February 25, 2025 – Completed

View Audit 366965

Finding 1154033 (2023-026)

Material Weakness 2023

State of Illinois

IL

Matching / Level of Effort / Earmarking Questioned Costs Subrecipient Monitoring § 200.303

Finding Number: 2023-026 Finding Name: Failure to Maintain Adequate Documentation for Reporting Finding Condition(s): The Illinois Department of Commerce and Economic Opportunity (DCEO) did not maintain adequate documentation to substantiate the amounts reported on the Low-Income Home Energy Assista...

Finding Number: 2023-026 Finding Name: Failure to Maintain Adequate Documentation for Reporting Finding Condition(s): The Illinois Department of Commerce and Economic Opportunity (DCEO) did not maintain adequate documentation to substantiate the amounts reported on the Low-Income Home Energy Assistance Program (LIHEAP) Performance Data Form. Additionally, the DCEO has not established appropriate internal controls to ensure required data reports submitted to USDHHS are properly supported in accordance with federal requirements. Name of Contact Person(s): Ben Moore, Fiscal Operations Manager – Illinois Department of Commerce and Economic Opportunity, Office of Community Assistance Corrective Action(s): To avoid a similar loss of supporting documentation for federal reports, the DCEO’s Office of Community Assistance (OCA) will save a backup copy of all supporting documentation to ensure it is available for review after the report has been submitted. Proposed Completion Date: February 25, 2025 – Completed

View Audit 366965

Finding 1154026 (2023-024)

Material Weakness 2023

State of Illinois

IL

Questioned Costs Procurement, Suspension & Debarment Eligibility § 200.303

Finding Number: 2023-024 Finding Name: Failure to Report Expenditures on the Medicaid CMS-64 Report in a Timely Manner Finding Condition(s): The Illinois Department of Healthcare and Family Services (DHFS) did not report certain Medicaid Cluster expenditures on quarterly federal financial (CMS-64) r...

Finding Number: 2023-024 Finding Name: Failure to Report Expenditures on the Medicaid CMS-64 Report in a Timely Manner Finding Condition(s): The Illinois Department of Healthcare and Family Services (DHFS) did not report certain Medicaid Cluster expenditures on quarterly federal financial (CMS-64) reports in a timely manner. Name of Contact Person(s): Jennifer Bourn, Bureau Chief – Illinois Department of Healthcare and Family Services, Federal Finance Corrective Action(s): The Illinois Department of Human Services (DHS) and the DHS’ Department of Innovation and Technology (DoIT) staff have implemented weekly reports on developmental disabilities (DD) waiver payment submissions to the DHFS to allow DHS staff information to review and timely identify any issues with the DD waiver submissions to the DHFS. The DHFS reviewed and revised its quarterly other agency Medicaid spending/federal revenue reporting, which is used to create the CMS-64. This report includes actual quarterly claim expenditure data and is distributed by the DHFS to other agencies and its staff for review each quarter. This report was redesigned to provide prior quarter/year comparisons to allow for more effective identification of problematic issues. Finally, the report’s recipient list was updated to ensure appropriate distribution to the DHFS’ staff and the other agencies. The DHFS’ staff follows-up with other agency recipients to ensure the quarterly reports are reviewed and responses are communicated to the DHFS. Proposed Completion Date: June 30, 2025 – Completed

View Audit 366965

Finding 1153996 (2023-019)

Material Weakness 2023

State of Illinois

IL

Reporting § 200.303

Finding Number: 2023-019 Finding Name: Failure to Report Drug Rebates on the Medicaid CMS-64 Report in a Timely Manner Finding Condition(s): The Illinois Department of Healthcare and Family Services (DHFS) did not accurately report certain Medicaid Cluster program drug rebates on quarterly federal f...

Finding Number: 2023-019 Finding Name: Failure to Report Drug Rebates on the Medicaid CMS-64 Report in a Timely Manner Finding Condition(s): The Illinois Department of Healthcare and Family Services (DHFS) did not accurately report certain Medicaid Cluster program drug rebates on quarterly federal financial (CMS-64) reports. Name of Contact Person(s): Jason Rosado Timmerhaus, Bureau Chief – Illinois Department of Human Services, Budget and Cash Management Corrective Action(s): The DHFS has identified and implemented the programming necessary to omit the Medicare Part D drugs in August 2024. The DHFS continues to monitor quarterly variances within the drug rebates included in its CMS-64s. Proposed Completion Date: August 31, 2024 – Completed

View Audit 366965

Finding 1153987 (2023-017)

Material Weakness 2023

State of Illinois

IL

Allowable Costs / Cost Principles Reporting Matching / Level of Effort / Earmarking § 200.303

Finding Number: 2023-017 Finding Name: Inadequate Process for Monitoring Interagency Program Expenditures Finding Condition(s): The Illinois Department of Human Services (IDHS) does not have an adequate process for monitoring interagency expenditures claimed under or used to meet maintenance of effo...

Finding Number: 2023-017 Finding Name: Inadequate Process for Monitoring Interagency Program Expenditures Finding Condition(s): The Illinois Department of Human Services (IDHS) does not have an adequate process for monitoring interagency expenditures claimed under or used to meet maintenance of effort (MOE) requirements of the Supplemental Nutrition Assistance Program (SNAP) Cluster, the Temporary Assistance for Needy Families (TANF), and the Child Care Development Fund (CCDF) Cluster programs. Specific issues noted included the following: • Program questionnaires describing internal control procedures for the CCDF program were not obtained by the IDHS from the Illinois Student Assistance Commission, the Illinois Board of Higher Education, and the Illinois Community College Board. Additionally, the program questionnaire describing internal control procedures for the TANF program was not updated for the period under audit by the Department of Children and Family Services, • Quarterly certification reports were not prepared during the period for the CCDF program by the Illinois Student Assistance Commission, the Illinois Board of Higher Education, and the Illinois Community College Board, and • The IDHS did not perform a detailed review of costs claimed from expenditures reported by any of the other State agencies to ensure they met the specific program requirements. The other State agencies do not necessarily know which federal program or maintenance of effort requirement the costs they are providing to the IDHS will be claimed or used and are not able to assess whether the costs are allowable. Further, the IDHS did not assess whether the expenditures reported by other State agencies were paid during fiscal year 2023 to ensure the amounts reported to the Illinois Office of the Comptroller (IOC) and used to prepare the schedule of expenditures of federal awards (SEFA) were cash basis expenditures. Name of Contact Person(s): Sarah Eves, Bureau Chief of General Accounting – Illinois Department of Human Services, Office of Fiscal Services Corrective Action(s): The IDHS’ Bureau of Federal Reporting (Bureau) will contact the program fiscal liaison for all major programs regarding the process of reporting and appropriate use of federal funds by other agencies. Furthermore, the Bureau will request quarterly certifications and program questionnaires for those agencies receiving funds from federal awards. Proposed Completion Date: March 31, 2025 – Completed

View Audit 366965

Finding 1153982 (2023-015)

Material Weakness 2023

State of Illinois

IL

Subrecipient Monitoring Reporting Matching / Level of Effort / Earmarking § 200.303 § 200.332 § 200.521

Finding Number: 2023-015 Finding Name: Inadequate Review of Subrecipient Single Audit Reports Finding Condition(s): The Illinois Department of Human Services (IDHS) did not adequately review single audit reports received from its subrecipients for the Special Supplemental Nutrition Program for Women...

Finding Number: 2023-015 Finding Name: Inadequate Review of Subrecipient Single Audit Reports Finding Condition(s): The Illinois Department of Human Services (IDHS) did not adequately review single audit reports received from its subrecipients for the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) programs, the Temporary Assistance for Needy Families Cluster (TANF), the CCDF Cluster (CCDF), the Social Services Block Grant (SSBG), and the Block Grants for Prevention and Treatment of Substance Abuse (SAPT) programs on a timely basis. Additionally, the IDHS has not established controls over subrecipient single audit report reviews at an adequate level of precision to ensure single audit reports are received and reviewed timely. Name of Contact Person(s): Brian Bond, Director – Illinois Department of Human Services, Office of Contract Administration Corrective Action(s): The IDHS’ Office of Contract Administration (OCA) staff will meet to coordinate and establish procedures to ensure subrecipient single audit reports are obtained and reviewed within established deadlines. On March 31, 2025, the OCA began to use its IDHS-OCA Procedures for Grantee Extensions of Audit Package Submissions. Proposed Completion Date: June 30, 2025 – Completed

View Audit 366965

Finding 1153968 (2023-012)

Material Weakness 2023

State of Illinois

IL

Reporting § 200.303 § 200.502 § 200.510

Finding Number: 2023-012 Finding Name: Inaccurate Reporting of Federal Expenditures Finding Condition(s): The Illinois Department of Human Services (IDHS) did not accurately report federal expenditures, including amounts provided to subrecipients, under the Supplemental Nutrition Assistance (SNAP) C...

Finding Number: 2023-012 Finding Name: Inaccurate Reporting of Federal Expenditures Finding Condition(s): The Illinois Department of Human Services (IDHS) did not accurately report federal expenditures, including amounts provided to subrecipients, under the Supplemental Nutrition Assistance (SNAP) Cluster, the Supplemental Nutrition for Women, Infants, and Children (WIC) programs, the Vocational Rehabilitation (VR) program, the Temporary Assistance for Needy Families (TANF), the Child Care Development Funds (CCDF) Cluster, the Social Services Block Grants (SSBG), the Block Grants for Prevention and Treatment of Substance Abuse (SAPT) program, and the Disability Insurance/SSI (SSDI) Cluster. Specifically, the auditors noted differences between the expenditure amounts provided for audit by the IDHS and the Schedule of Expenditures of Federal Awards (SEFA) amounts reported to the IOC, differences relative to amounts provided to program subrecipients, the cash basis expenditures provided by the IDHS for audit procedures included accrued (not paid) expenditures, and amounts passed through to other State agencies from the IDHS provided by the IDHS for audit procedures included expenditures paid outside of the fiscal year. Finally, IDHS’ controls over reporting federal expenditures were not designed at a sufficient level of precision to ensure complete and accurate reporting in a timely manner. Name of Contact Person(s): Sarah Eves, Bureau Chief – Illinois Department of Human Services, Bureau of General Accounting Corrective Action(s): The IDHS has created a spreadsheet with all federal expenditure data grouped by assistance listing numbers (ALN). The spreadsheet also contains a tab with only the major program expenditure data, which is compared the IDHS’ SEFA totals. Any discrepancies between the reporting methodologies are identified and researched. Proposed Completion Date: September 30, 2024 – Completed

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Finding 1153951 (2023-010)

Material Weakness 2023

State of Illinois

IL

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting § 200.303 § 200.332

Finding Number: 2023-010 Finding Name: Failure to Follow Established Program Subrecipient Monitoring Procedures Finding Condition(s): The Illinois Department of Human Services (IDHS) did not follow its established program monitoring policies and procedures for subrecipients of the Temporary Assistan...

Finding Number: 2023-010 Finding Name: Failure to Follow Established Program Subrecipient Monitoring Procedures Finding Condition(s): The Illinois Department of Human Services (IDHS) did not follow its established program monitoring policies and procedures for subrecipients of the Temporary Assistance for Needy Families (TANF) Cluster, the Childcare Cluster (CCDF), the Social Services Block Grant (SSBG), and the Block Grants for Prevention and Treatment of Substance Abuse (SAPT) programs. More specifically, the IDHS did not perform on-site monitoring reviews of subrecipients in fiscal year 2023 in accordance with IDHS’ planned monitoring schedule and/or could not provide support for the review, did not provide timely notification (within 60 days) of the results of the programmatic on-site reviews, did not complete its quality reviews on a timely basis (within 60 days), did not receive corrective action plans from subrecipients after findings were identified during the reviews, and was unable to provide documentation evidencing monitoring of the quarterly program reports. Name of Contact Person(s): • Elizabth Lusk, Social Service Program Planner – Illinois Department of Human Services, Division of Family and Community Services • Christina Miller, Fund Disbursement Manager – Illinois Department of Human Services, Division of Substance Use, Prevention, and Recovery Corrective Action(s): IDHS - Division of Family and Community Services (FCS) FCS Associate Directors, in conjunction with staff from the Director’s Office, met and reviewed exceptions noted in the fiscal year 2022 single audit to determine any need for updated documentation and communication regarding subrecipient programmatic monitoring. The FCS reviewed the FCS Programmatic Monitoring Guidance Document and made necessary updates. IDHS - Division of Substance Use Prevention and Recovery (SUPR) The SUPR will hire an administrative assistant to assist with compliance monitoring tracking activities to maintain communication about important deadlines. The SUPR will also hire compliance monitors to engage in conducting compliance reviews. Additionally, the SUPR will meet weekly to track monitoring activities to ensure deadlines are met. Finally, the SUPR will review its policy and procedures to assess timelines associated with the monitoring process. Proposed Completion Date: • July 29, 2024 – Completed (FCS) • December 31, 2025 (SUPR)

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Finding 1153923 (2023-006)

Material Weakness 2023

State of Illinois

IL

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

Finding Number: 2023-006 Finding Name: Inadequate Procedures to Determine Accuracy of the Post-Expenditure Report Finding Condition(s): The Illinois Department of Human Services (IDHS) failed to provide supporting documentation for the post-expenditure report including a key line item, the number of...

Finding Number: 2023-006 Finding Name: Inadequate Procedures to Determine Accuracy of the Post-Expenditure Report Finding Condition(s): The Illinois Department of Human Services (IDHS) failed to provide supporting documentation for the post-expenditure report including a key line item, the number of eligible individuals who received services paid for in part or in whole with federal funds under the Social Services Block Grant (Title XX) program. Name of Contact Person(s): Elizabeth Lusk, Social Services Program Planner Director Operations – Illinois Department of Human Services, Division of Family and Community Services Corrective Action(s): The IDHS emailed notifications to all grantees of the requirement to include a client identifier when reporting the number of eligible clients served. (Completed 07/01/24).Additionally, the IDHS will update its FY26 Title XX Program Manual to include client identifier as a reporting requirement. The update will also include the process of how and when the data will be collected. (Completed 06/06/25) Finally, the IDHS will shift from annual to quarterly reporting for the post-expenditure report. This change will ensure the report is complete, accurate, and properly supported. (Completed 04/18/25) Proposed Completion Date: June 6, 2025 – Completed

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Corrective Action Plans

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