Corrective Action Plans

Finding 560078 (2023-002)

Significant Deficiency 2023

CT

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Significant Deficiency

Suspension and Debarment over COVID-19 America Rescue Plan Act Recommendation: We recommend that the Town design controls to ensure an adequate review process in place to review potential contractors to determine they are not suspended or debarred. Explanation of disagreement with audit finding: The...

Suspension and Debarment over COVID-19 America Rescue Plan Act Recommendation: We recommend that the Town design controls to ensure an adequate review process in place to review potential contractors to determine they are not suspended or debarred. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Town has a system in place to review contractors. A written process will be prepared to record and maintain appropriate documentation. Name of the contact person responsible for corrective action: Town Manager and Finance Director Planned completion date for corrective action plan: Since this report is overdue, the estimated date is before the start of the FY 24 audit.

View Audit 356034

Finding 560049 (2023-001)

Significant Deficiency 2023

New Narrative

OR

Reporting Significant Deficiency

Significant Deficiency over Preparation of Schedule of Federal Expenditures (SEFA) The Organization did not identify all federal awards and significant adjustments were required to the SEFA prepared by management. Corrective Action: The Organization agrees with the auditor’s recommendation. At the...

Significant Deficiency over Preparation of Schedule of Federal Expenditures (SEFA) The Organization did not identify all federal awards and significant adjustments were required to the SEFA prepared by management. Corrective Action: The Organization agrees with the auditor’s recommendation. At the time of this audit’s publishing, the Organization has implemented additional procedures and controls to identify and report all federal award activity. Anticipated Completion Date: May 2025

View Audit 355986

Finding 560044 (2023-001)

Significant Deficiency 2023

Wisconsin Cheese Makers Association

WI

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

Comments on findings and recommendations Management should implement a process to evaluate and allocate expenses on a regular basis. Actions taken or planned Management implemented a process to evaluate and allocate expenses based on employee estimates of time spent by function and proportion of th...

Comments on findings and recommendations Management should implement a process to evaluate and allocate expenses on a regular basis. Actions taken or planned Management implemented a process to evaluate and allocate expenses based on employee estimates of time spent by function and proportion of the association’s floor space utilized by each employee during the year. Anticipated completion date July 1, 2023

View Audit 355972

Finding 560005 (2023-003)

Significant Deficiency 2023

Ida B Wells, INC

CT

Reporting Significant Deficiency Internal Control / Segregation of Duties

Finding; Reference Number: 2023-003 Description of Finding: The audit and reporting package were not submitted by the due date April 30, 2024. Finding is a significant deficiency. Statement of Concurrence or Nonconcurrence: Management agrees with this finding. Corrective Action: Management will ensu...

Finding; Reference Number: 2023-003 Description of Finding: The audit and reporting package were not submitted by the due date April 30, 2024. Finding is a significant deficiency. Statement of Concurrence or Nonconcurrence: Management agrees with this finding. Corrective Action: Management will ensure that there is an adequate level of appropriately trained and experienced personnel and that internal controls over financial reporting will function properly to submit the audit and reporting package timely. Name of Contact Person: Kimalee Williams, CEO - Faith Asset Management, LLC, (860) 528-5000, kimalee@faithassetmgt.com Projected Completion Date: July 31, 2026

View Audit 355922

Finding 559992 (2023-002)

Significant Deficiency 2023

Central Arizona Irrigation & Drainage District

AZ

Allowable Costs / Cost Principles Reporting Procurement, Suspension & Debarment § 200.508 § 200.510

COVID-1 9 Coronavirus State and Local Fiscal Recovery Funds — Assistance Listing No. 21 .027 Recommendation: We recommend the District design controls to ensure an adequate review process over the invoices recorded and presented on the schedule of expenditures of federal awards to determine complian...

COVID-1 9 Coronavirus State and Local Fiscal Recovery Funds — Assistance Listing No. 21 .027 Recommendation: We recommend the District design controls to ensure an adequate review process over the invoices recorded and presented on the schedule of expenditures of federal awards to determine compliance with the Uniform Guidance. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The District’s policies will be updated and approved if needed to conform to federal guidance. Name(s) of the contact person(s) responsible for corrective action: Ron McEachern, General Manager or Delia Stoor, Accounting Manger Planned completion date for corrective action plan: September 30, 2024

View Audit 355902

Finding 559956 (2023-005)

Significant Deficiency 2023

Mental Health Association in Orange County, Inc.

NY

Special Tests & Provisions Significant Deficiency Internal Control / Segregation of Duties

• Finding 2023-005 – Compliance and Significant Deficiency in Internal Control over compliance with Allowable Costs: o U.S. Department of Housing and Urban Development o Agency Response: Concurs with the audit finding. o Corrective Action Plan: MHA updated internal procedures to assure the Assista...

• Finding 2023-005 – Compliance and Significant Deficiency in Internal Control over compliance with Allowable Costs: o U.S. Department of Housing and Urban Development o Agency Response: Concurs with the audit finding. o Corrective Action Plan: MHA updated internal procedures to assure the Assistant Director of Housing is reviewing rent calculations to assure there are not data entry issues, when there are questions in the program about what should qualify as “income” an internal discussion is held with the Director of Corporate Compliance and the Clinical Director of Behavioral Health Services. The Assistant Director of Housing and Care Coordination will notify all staff responsible for administering HUD programs of the policy changes and train those staff accordingly. All trainings are expected to be completed by May 2025. o Person Responsible: Director of Corporate Compliance o Expected Date of Completion: May 15, 2025

View Audit 355894

Finding 559955 (2023-004)

Significant Deficiency 2023

Mental Health Association in Orange County, Inc.

NY

Special Tests & Provisions HUD Housing Programs Significant Deficiency

• Finding 2023-004 – Compliance and Significant Deficiency in Internal Control over compliance with Special Tests and Provisions: o U.S. Department of Housing and Urban Development o Agency Response: Concurs with audit findings. o Corrective Action Plan: The utility calculation is updated annually ...

• Finding 2023-004 – Compliance and Significant Deficiency in Internal Control over compliance with Special Tests and Provisions: o U.S. Department of Housing and Urban Development o Agency Response: Concurs with audit findings. o Corrective Action Plan: The utility calculation is updated annually by the Director of Corporate Compliance using the new tables provided by Pathstones which is received at the end of each year. This was implemented for 2024. The agency has developed, revised and implemented internal controls in the form of written program policies and procedures to ensure that the agency is in compliance with changes to regulatory requirements. Utility calculation is updated annually and verified by the Director of Corporate Compliance to reflect the current utility allowances within 30-days of publication. The Assistant Director of Housing and Care Coordination will notify all staff responsible for administering HUD programs of the policy changes and train those staff accordingly by May 2025. o Person Responsible: Director of Corporate Compliance o Expected Date of Completion: May 15, 2025

View Audit 355894

Finding 559954 (2023-003)

Significant Deficiency 2023

Mental Health Association in Orange County, Inc.

NY

Special Tests & Provisions HUD Housing Programs Significant Deficiency

• Finding 2023-003 – Compliance and Significant Deficiency in Internal Control over compliance with Special Tests and Provisions o U.S. Department of Housing and Urban Development o Agency Response: Concurs with audit findings. o Corrective Action Plan: MHA uses the official HUD COC Rent Determinat...

• Finding 2023-003 – Compliance and Significant Deficiency in Internal Control over compliance with Special Tests and Provisions o U.S. Department of Housing and Urban Development o Agency Response: Concurs with audit findings. o Corrective Action Plan: MHA uses the official HUD COC Rent Determination worksheets, as well as an external vendor (Affordable Housing Network) to establish that reasonable rents are charged for comparable apartments. Worksheets are now updated annually and verified by the Director of Corporate Compliance. The Assistant Director of Housing and Care Coordination will notify all staff responsible for administering HUD programs of the changes and train those staff accordingly. The external contract was established in mid-2024, and is still being used. o Person Responsible: Director of Corporate Compliance. o Date of Completion: June 10, 2024.

View Audit 355894

Finding 559810 (2023-001)

Significant Deficiency 2023

Opportunities Credit Union

VT

Reporting Significant Deficiency

Identifying Number: Finding 2023-001 Finding: Late Issuance of 2023 Single Audit Package Condition: The submission of the 2023 Single Audit reporting package was not submitted by the September 30, 2024 deadline. Corrective Actions Taken or Planned: Management agrees with the finding that the Single ...

Identifying Number: Finding 2023-001 Finding: Late Issuance of 2023 Single Audit Package Condition: The submission of the 2023 Single Audit reporting package was not submitted by the September 30, 2024 deadline. Corrective Actions Taken or Planned: Management agrees with the finding that the Single Audit report was not filed timely. This report will be filed once the Single Audit is issued. The delay in filing was due to personnel constraints. Management will take steps to hire the necessary personnel to ensure all audit work can be performed in a timely manner going forward. Completion Date: April 30, 2025 Responsible for the Corrective Action Plan: Erin Metivier, Chief Financial Officer

View Audit 355770

Finding 559006 (2023-006)

Significant Deficiency 2023

City of Dunkirk Housing Authority

NY

HUD Housing Programs Subrecipient Monitoring Significant Deficiency

2023-006 Significant Deficiency: See finding 2023-006. Recommendation: We recommend that management of the Authority work with its newly retained fee accountant to prepare an operating budget by AMP location. Management’s response: We concur with the recommendation. The Authority has had some st...

2023-006 Significant Deficiency: See finding 2023-006. Recommendation: We recommend that management of the Authority work with its newly retained fee accountant to prepare an operating budget by AMP location. Management’s response: We concur with the recommendation. The Authority has had some staff turnover over the past several years. A new executive director and a new account clerk were both hired within the past several years. Management was aware that its budget was not prepare by AMP location. Management engaged the services of a fee-accountant subsequent to year-end who will assist with the budgeting process starting in the 2024-2025 fiscal year.

View Audit 355249

Finding 559004 (2023-004)

Significant Deficiency 2023

City of Dunkirk Housing Authority

NY

HUD Housing Programs Significant Deficiency

2024-004 Significant Deficiency: See finding 2023-004. Recommendation: We recommend that management of the Authority review its processes for closing out all fully-expended grants with HUD to ensure that, in the future, when grants are fully expended, the close-out process begins shortly thereafte...

2024-004 Significant Deficiency: See finding 2023-004. Recommendation: We recommend that management of the Authority review its processes for closing out all fully-expended grants with HUD to ensure that, in the future, when grants are fully expended, the close-out process begins shortly thereafter. Management’s response: We concur with the recommendation. The Authority has had some staff turnover over the past several years. A new executive director and a new account clerk were both hired within the past several years. Management was aware that several older grants were still shown as “open” and that the close-out procedures would have to be implemented at some point. Management is evaluating its processes and procedures related to closing out grants and is planning on implementing procedures to ensure grants are properly closed. Management will be working with the newly hired fee accountant to close out grants that have been fully expended.

View Audit 355249

Finding 556042 (2023-003)

Significant Deficiency 2023

Joseph's House and Shelter, Inc.

NY

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Material Weakness

Finding 2023-003--General Oversight--Significant Deficiency Recommendation: We recommend that the Organization create policies and procedures to ensure proper oversight of the financial reporting function. In addition, we would recommend the Organization to consider the costs and benefits of restr...

Finding 2023-003--General Oversight--Significant Deficiency Recommendation: We recommend that the Organization create policies and procedures to ensure proper oversight of the financial reporting function. In addition, we would recommend the Organization to consider the costs and benefits of restructuring the finance department. This could include allocating additional resources to hire additional employees, reallocation of responsibilities within the organization and less reliance on the contracted accounting services. View of Responsible Officials and Planned Corrective Actions: The Executive Director has worked to reduce the reliance on outside contracted accounting services. Beginning in Q1 2022, agency leadership took necessary action to begin restructuring the Finance Department following a change in staffing with the contracted accounting service. In Q2 2022, the agency promoted a long-tenured staff member to the newly-created Director of Grants and Finance position, which separated and removed all finance duties from the Director of Administration. To support the Director of Grants and Finance, a full-time Grants and Finance Specialist staff position was created in Q3 of 2022 To further strengthen financial oversight and ensure timely access to grant funds, the organization implemented a structured monthly grant billing schedule. This process ensures that vouchering is completed on time, reducing delays in reimbursements and mitigating cash flow disruptions. As a result, grant reimbursements have been received more consistently, alleviating financial strain and improving overall fiscal stability. Joseph’s House has created a 21-page Accounting Policies and Procedures Manual to ensure proper oversight of all fiscal functions. Changes are currently in process and will be sent for review by the Board’s Finance Committee followed by a final review and approval of the full Board of Directors. The organization has scaled back reliance on the contracted accounting service and has ensured that all claims, with the implementation of personnel time-tracking systems, are submitted through our Finance Department. We continue to use a contracted accounting service for higher-level accounting duties and for on-going advisement that supplements, instead of replaces, the work of internal staff. We are confident these changes have improved the agency’s ability to provide adequate management oversight in the financial reporting process. This was completed in Q2 of 2023.

View Audit 354774

Finding 556041 (2023-001)

Significant Deficiency 2023

Joseph's House and Shelter, Inc.

NY

Significant Deficiency

Finding 2023-001--Timely Submission of Single Audit--Significant Deficiency Recommendation: The Organization should put in place policies and procedures to ensure that the books are closed and provided to the auditor in a timely manner that provides sufficient time for an audit to be completed prio...

Finding 2023-001--Timely Submission of Single Audit--Significant Deficiency Recommendation: The Organization should put in place policies and procedures to ensure that the books are closed and provided to the auditor in a timely manner that provides sufficient time for an audit to be completed prior to the single audit due date. Views of Responsible Officials and Planned Corrective Actions: The Executive Director will work with the Director of Grants and Finance, once the position is filled, along with a contracted accounting company, to review and revise the agency’s accounting policies and procures. To ensure proper oversight, all procedures and reports will be reviewed by the Board’s Finance Committee, followed by a final review and approval of the Full Board of Directors of Joseph’s House & Shelter. The agency is actively working on several financial management improvements with the support of an accounting firm providing technical assistance. An employee time tracking initiative has been put in place in 2024, along with efforts to convert to a more robust fund accounting system and implement automated accounts payable and payments through a web-based platform. Throughout these transitions, the agency will conduct a detailed review of grant funds, balances, and receivables. These improvements are expected to automate a significant portion of financial transaction postings, reducing manual labor and allowing Finance Department staff to focus on other critical duties. The new systems will be incorporated into an updated accounting policies and procedures document, ensuring adherence to streamlined processes that will expedite the claiming process and enable timely financial reporting.

View Audit 354774

Finding 555986 (2023-002)

Significant Deficiency 2023

County of Hancock, Maine

ME

Significant Deficiency

2023-002 Significant Deficiency Name of contact person: Michael Crooker, County Administrator Corrective Action: The County will work to ensure timely filing of required reports in the future. Proposed completion date: Management intends to have the policy in place immediately.

View Audit 354709

Finding 555797 (2023-003)

Significant Deficiency 2023

Improve Your Tomorrow

CA

Reporting Subrecipient Monitoring Significant Deficiency

Description of Finding: IYT did not submit its FY22-23 Single Audit and Audited Financial tatements to the federal audit clearinghouse by the required deadline of March 31, 2024. The delay was attributed to internal capacity constraints and staff turnover, which resulted in late preparation of the S...

Description of Finding: IYT did not submit its FY22-23 Single Audit and Audited Financial tatements to the federal audit clearinghouse by the required deadline of March 31, 2024. The delay was attributed to internal capacity constraints and staff turnover, which resulted in late preparation of the Schedule of Expenditures of Federal Awards and other key audit deliverables. Statement of Concurrence or Nonconcurrence: We concur with the audit finding. Corrective Action: IYT acknowledges the late submission of the FY22-23 Single Audit and recognizes delays in the FY23-24 audit timeline as well. This reflects a breakdown in internal ownership and process awareness related to the Single Audit. The CFAO is taking full responsibility for implementing new internal systems, including a detailed audit readiness timeline, early preparation of the SEFA, and clear role assignments.. IYT is also evaluating whether additional staff capacity or process changes are needed to ensure future compliance with federal reporting deadlines. Name of Contact Person: Macarena O’Brien, Chief Financial & Administrative Officer (480)993-4764 | macarena@improveyourtomorrow.org Projected Completion Date: March 31, 2026

View Audit 354483

Finding 555337 (2023-005)

Material Weakness 2023

County of Imperial

CA

Reporting Significant Deficiency

2023-005 Program: WIOA Cluster Federal Financial Assistance Listing Number: 17.258, 17.259, 17.277, 17.278 Federal Grantor: U.S. Department of Labor Pass-Through: California Department of Employment Development Award No. and Year: AA211008/AA111008 - FY22-23 Compliance Requirements: Reporting Type ...

2023-005 Program: WIOA Cluster Federal Financial Assistance Listing Number: 17.258, 17.259, 17.277, 17.278 Federal Grantor: U.S. Department of Labor Pass-Through: California Department of Employment Development Award No. and Year: AA211008/AA111008 - FY22-23 Compliance Requirements: Reporting Type of Finding: Significant Deficiency Management’s or Department’s Response: Imperial County Workforce Development Office (ICWDO) agrees with the finding. Views of Responsible Officials and Corrective Action Plan: ICWDO acknowledges the recommendation and is actively working on a remedy and on the development of formal policies as recommended, which will assist ICWDO’s fiscal team in ensuring that all reports are appropriately reconciled. ICWDO acknowledges the recommendations from finding 2023-005 related to a formalization of the Administrative/fiscal processes and protocols to ensure that procedures are consistently followed to guarantee that reports agree to the amounts recorded in the general ledger and SEFA. Additionally, the recommendation specifics that protocols to ensure the separation of duties are featured in the policy. ICWDO operates under WIOA guidelines and follows County fiscal/administrative policies. Internal policies that include formal controls and procedures to ensure that monthly reports and general ledgers are consistent, with clear segregation of duties will be formally adopted. Aspects of these policies will include: • Protocol for preparation of monthly reports by the fiscal manager, and approval and signature by ICWDO Director • Protocol for preparation of closeouts that will provide the hierarchy of development, review, and approval for future reference. • Schedule monthly closeout meetings with the fiscal department and administration to ensure that documents are reviewed separately, and issues are addressed promptly. • Protocol for Policy Committee review, comment and direction, and approval for implementation by vote of the full workforce development board. ICWDO anticipates to implement the corrective action by December 31, 2023. Name of Responsible Person: Priscilla A Lopez, ICWDB Director Implementation Date: December 31, 2023

View Audit 353983

Finding 555252 (2023-005)

Significant Deficiency 2023

Community Health Service, Inc.

MN

Special Tests & Provisions Allowable Costs / Cost Principles Significant Deficiency

1. Improvement of Data Entry and Documentation Management: *The process for submitting, processing, and storing sliding fee applications will be reviewed and streamlined to ensure that all supporting income level documents are properly collected, verified, and stored at the time of application submi...

1. Improvement of Data Entry and Documentation Management: *The process for submitting, processing, and storing sliding fee applications will be reviewed and streamlined to ensure that all supporting income level documents are properly collected, verified, and stored at the time of application submission. *Employees involved in handling sliding fee applications and supporting documents will be provided with training on the importance of accurate documentation and the procedures for proper filing, both physically and electronically. 2. Implement Regular Monitoring and Auditing: *A regular internal review and audit process will be revisited to ensure that backup, storage, and retention practices are being followed. These audits will focus on verifying that all sliding fee applications and related documents are stored correctly and are retrievable as needed. *Any discrepancies or issues identified during audits will be addressed promptly, and corrective actions will be taken to ensure compliance with the established procedures. 3. Staff Training and Awareness: *Training sessions will be conducted for all relevant staff on the updated backup, storage, and retention procedures for sliding fee applications and income documentation. This training will emphasize the importance of maintaining accurate and accessible records to comply with regulatory and organizational standards. *Refresher training will be provided quarterly to ensure ongoing compliance and awareness.

View Audit 353876

Finding 555180 (2023-002)

Significant Deficiency 2023

Porchlight, Inc.

WI

Reporting Significant Deficiency Matching / Level of Effort / Earmarking

We will utilize new software to automate the preparation and compilation of audit reports and compliance reports, streamlining the entire process and reducing the likelihood of delays. We will establish a centralized document management system with robust retention protocols. This system will ensure...

We will utilize new software to automate the preparation and compilation of audit reports and compliance reports, streamlining the entire process and reducing the likelihood of delays. We will establish a centralized document management system with robust retention protocols. This system will ensure that all relevant documents and information required for the reports are readily accessible and properly maintained, minimizing delays caused by searching for necessary materials. We will institute a schedule for regular reviews and monitoring of the reporting process. This will involve conducting periodic assessments to identify any bottlenecks or potential issues that could lead to delays, allowing for proactive intervention and resolution. By implementing these measures, we aim to mitigate the risk of late filing of the audit report, thereby enhancing compliance with regulatory requirements and ensuring timely and accurate reporting.

View Audit 353787

Finding 555151 (2023-008)

Significant Deficiency 2023

Samu Foundation

DC

Reporting Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

Views of Responsible Officials: Based on this audit finding, SAMU agreed addressing the following: 1. Implement a formal review and approval process for program reports, including documentation of reviewer's name and date. 2. Establish a system to retain internal documentation of report submission d...

Views of Responsible Officials: Based on this audit finding, SAMU agreed addressing the following: 1. Implement a formal review and approval process for program reports, including documentation of reviewer's name and date. 2. Establish a system to retain internal documentation of report submission dates. 3. Develop a reporting calendar with internal deadlines for report preparation and review. 4. Designate specific individuals responsible for report preparation, review, and submission.

View Audit 353757

Finding 555148 (2023-005)

Significant Deficiency 2023

Samu Foundation

DC

Cash Management Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

Views of Responsible Officials: SAMU management has ordered that all SAMU staff that corresponds with grantor personnel has to document such correspondence via emails or other means the afreed procedures including those of delayed submission of drawdowns.

View Audit 353757

Finding 555146 (2023-003)

Significant Deficiency 2023

Samu Foundation

DC

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

Views of Responsible Officials: SAMU has finalized comprehensive Logistics and procurement policy that covers the credit cards policy and the respective treatment and control for approvals. A comprehensive corrective action plan has been greed it addresses: 1. Establishment of a documented review pr...

Views of Responsible Officials: SAMU has finalized comprehensive Logistics and procurement policy that covers the credit cards policy and the respective treatment and control for approvals. A comprehensive corrective action plan has been greed it addresses: 1. Establishment of a documented review process with clear timelines 2. Training program for staff on federal cost principles and internal procedures 3. Regular monitoring and internal audit procedures By implementing these measures, SAMU emphasizes the importance of strengthened internal controls, ensure compliance with federal regulations, and mitigate the risk of charging unallowable costs to federal awards.

View Audit 353757

Finding 554444 (2023-007)

Significant Deficiency 2023

Leech Lake Tribal College

AZ

Reporting Significant Deficiency Matching / Level of Effort / Earmarking § 200.328

The Department has ramped up recruiting efforts by advertising positions on external websites such as indeed. The accounting department has recently increased the wages of existing staff and the starting wages of all positions in an effort to attract and retain qualified staff.

View Audit 353088

Finding 554151 (2023-019)

Significant Deficiency 2023

State of California

CA

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.300 § 200.303 § 200.309 § 200.403

The CDSS’ Disability Determination Services Division (DDSD) has implemented corrective measures to address inaccuracies in the Modernized Integrated Disability Adjudicative System (MIDAS) and Disability Case Processing System (DCPS) invoice review processes. This includes an internal quality control...

The CDSS’ Disability Determination Services Division (DDSD) has implemented corrective measures to address inaccuracies in the Modernized Integrated Disability Adjudicative System (MIDAS) and Disability Case Processing System (DCPS) invoice review processes. This includes an internal quality control process to monitor and review additional invoice samples from Branches after they have been processed and reviewed by Branch Program Technicians and Branch Auditors. Additionally, the DDSD Central Support Services Branch implemented a secondary audit process and created a new Auditor role to routinely sample additional Medical Evidence of Record (MER) and Consultative Examination (CE) contracts. Findings are provided to branches to reinforce accuracy and assure compliance. The DDSD, also transitioned from MIDAS to DCPS, which provides more sophisticated fiscal controls. To remediate any inaccuracies, DDSD’s centralized auditor will assess findings and develop an action plan to prevent erroneous invoices. The CDSS ensures that all necessary controls are in place to verify the accuracy and proper documentation of invoices. The CDSS concludes that the sample size of 15 MER cases does not provide sufficient audit evidence that controls are not operating effectively resulting in a calculated $54,398 in potential costs. However, CDSS agrees with the finding and is committed to the control and mitigation of risk related to the audit recommendation. Estimated Implementation Date: Implemented Contact: Bernice Stanfield, Fiscal and Procurement Section Chief Central Support Services Branch Disability Determination Service Division California Department of Social Services

View Audit 352774 Questioned Costs: $1

Finding 554135 (2023-018)

Significant Deficiency 2023

State of California

CA

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

DHCS recently implemented and instructed all staff on an improved leave management and timesheet submission process, effective November 20, 2024, beginning with the December 2024 pay period. The change addresses the recommendations from CSA by streamlining the submission, review, and storage of empl...

DHCS recently implemented and instructed all staff on an improved leave management and timesheet submission process, effective November 20, 2024, beginning with the December 2024 pay period. The change addresses the recommendations from CSA by streamlining the submission, review, and storage of employee timesheets, ensuring efficient and transparent management of time-related data across DHCS. Furthermore, the new process ensures a manager or supervisor reviews and approves all timesheets before submission. Estimated Implementation Date: November 20, 2024 Contact: California Department of Health Care Services • Primary – Erika Cristo Assistant Deputy Director, Behavioral Health • Secondary – Wendy Rasmussen, Chief, Office of Compliance - Internal Audits

View Audit 352774

Finding 554133 (2023-017)

Significant Deficiency 2023

State of California

CA

Eligibility Internal Control / Segregation of Duties Procurement, Suspension & Debarment § 200.303

Public Health’s Office of AIDS (OA) agrees with the finding and recommendation. OA introduced and fully implemented an internal Secondary Review (SR) process for all AIDS Drug Assistance Program (ADAP) applications in March 2018. This SR process enables ADAP staff to verify that contracted and certi...

Public Health’s Office of AIDS (OA) agrees with the finding and recommendation. OA introduced and fully implemented an internal Secondary Review (SR) process for all AIDS Drug Assistance Program (ADAP) applications in March 2018. This SR process enables ADAP staff to verify that contracted and certified enrollment workers across California are consistently adhering to eligibility and documentation requirements. However, due to staffing challenges caused by the redirection of staff during the state of emergency declared for the COVID-19 pandemic, ADAP faced significant workforce shortages from March 2020 through much of 2023. This caused a backlog in SR processing, which delayed tasks, including the review of this client’s application. The client’s eligibility lapsed after 130 days, before SR could be conducted. The Eligibility Operations Section (EOS) of ADAP which conducts SR, is now fully staffed and has successfully addressed the backlog. As of early 2024, SR processing has returned to normal operations and is current. Estimated Implementation Date: Already implemented as of April 2024 Contact: Joseph Lagrama, ADAP Branch Chief California Department of Public Health

View Audit 352774

Corrective Action Plans

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