Corrective Action Plans

Finding 1186861 (2025-003)

Material Weakness 2025

Homeless Assistance Leadership Organization, Inc.

WI

Subrecipient Monitoring HUD Housing Programs Period of Performance

Finding #2025-003 - Rent Reasonableness Criteria: HUD requires that recipients ensure that rent is reasonable compared to similar unassisted units and maintain documentation supporting the determination; rent paid with CoC leasing funds·may not exceed Fair Market Rent (FMR); and rent reasonableness ...

Finding #2025-003 - Rent Reasonableness Criteria: HUD requires that recipients ensure that rent is reasonable compared to similar unassisted units and maintain documentation supporting the determination; rent paid with CoC leasing funds·may not exceed Fair Market Rent (FMR); and rent reasonableness determinations must be completed before providing assistance. Condition: During testing of rent reasonableness controls and documentation, the following exceptions were identified: • 4 of 4 rent reasonableness determinations lacked evidence of an independent review and approval. • There were 8 instances (2 units x 4 months) where rents exceeded HUD FMR limits. • 3 of 20 rent reasonableness determinations were not completed prior to the lease start date. Questioned Costs: $392. Cause: The Organization did not have sufficiently defined or consistently followed procedures for documenting independent review of rent reasonableness determinations, verifying rents against applicable FMR limits before authorizing payments, and ensuring determinations were complete prior to lease start dates. Effect: Units are approved and paid at non-compliant rent levels, federal funds are used for rents above allowable limits, and documentation does not meet HUD standards, potentially leading to questioned costs, required repayment, and findings in future monitoring or audits. Recommendation: We recommend that management establish a mandatory review and approval step for all rent reasonableness forms, require staff to verify current FMR limits before approving leasing amounts, and require rent reasonableness completion before any lease start date or payment authorization. Response: HALO's management concurs with this finding. HALO management will implement procedures to ensure compliance with rent reasonableness and FMR limits and train staff on those procedures. HALO will replace the current Rent Reasonableness form with the one on the HUD Exchange. Contact Person: Yvonne MacDonald Hames Anticipated Completion: June 30, 2026

View Audit 394609

Finding 1186860 (2025-002)

Material Weakness 2025

Homeless Assistance Leadership Organization, Inc.

WI

Allowable Costs / Cost Principles HUD Housing Programs Significant Deficiency

Finding #2025-002 - Wage Allocations Criteria: Wages should be allocated to federal and state programs on the basis of time spent in each program. Condition: 1 out of 40 payroll transactions reviewed had differences between the wages that were charged to the grant and the wages that should have been...

Finding #2025-002 - Wage Allocations Criteria: Wages should be allocated to federal and state programs on the basis of time spent in each program. Condition: 1 out of 40 payroll transactions reviewed had differences between the wages that were charged to the grant and the wages that should have been charged to the grant based on the number of hours worked. Questioned Costs: $1,540. Cause: Payroll software coded manager time as admin time instead of the specific grant funding code. Effect: Wages could be charged to the wrong federal awards and not detected and corrected. Recommendation: We recommend that management review payroll software inputs and outputs for accuracy prior to completing grant claims. Response: HALO's management concurs with this finding. HALO's processes will include a review of payroll software inputs and outputs to ensure hours and wages are accurately allocated. Contact Person: Yvonne MacDonald Hames Anticipated Completion: June 30, 2026

View Audit 394609

Finding 1186836 (2025-003)

Material Weakness 2025

Independent School District No.15

MN

Procurement, Suspension & Debarment Internal Control / Segregation of Duties Eligibility § 200.318

SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE – U.S. DEPARTMENT OF AGRICULTURE, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, CHILD NUTRITION CLUSTER (ALN 10.553, 10.555, AND 10.556) 2025-003 Internal Control Over Compliance With Federal Suspension and Debarment Requirements Finding...

SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL OVER COMPLIANCE – U.S. DEPARTMENT OF AGRICULTURE, PASSED THROUGH MINNESOTA DEPARTMENT OF EDUCATION, CHILD NUTRITION CLUSTER (ALN 10.553, 10.555, AND 10.556) 2025-003 Internal Control Over Compliance With Federal Suspension and Debarment Requirements Finding Summary 2 CFR § 180 and 2 CFR § 200.318-327 requires the District to establish and maintain effective internal control over compliance with requirements applicable to federal program expenditures, including suspension and debarment requirements applicable to the child nutrition cluster federal programs. During our audit, we noted the District did not have sufficient controls in place within its child nutrition cluster federal programs to ensure compliance with federal requirements related to assuring that the District was not contracting for goods or services with parties that are suspended or debarred, or whose principals are suspended or debarred from participating in contracts involving the expenditures of federal program funds. Corrective Action Plan Actions Planned – The District will review its policies and procedures relating to suspension and debarment for its federal programs to ensure compliance with the Uniform Guidance in the future, including maintaining appropriate documentation. Official Responsible – Dawn Duevel, Business Services Director. Planned Completion Date – June 30, 2026. Disagreement With or Explanation of Finding – The District agrees with this finding. Plan to Monitor – Dawn Duevel, Business Services Director, will assure appropriate internal controls and procedures are in place to ensure compliance with suspension and debarment requirements.

View Audit 394580

Finding 1186693 (2025-001)

Material Weakness 2025

Urban League of Portland

OR

Allowable Costs / Cost Principles Period of Performance Significant Deficiency

Finding 2025‐001: Contact Person NAME: Julia Delgado PHONE: (503) 280-2600 E-Mail: jdelgado@ulpdx.org Explanation and Specific Reasons for Disagreement with the Audit Finding or That Corrective Action is not Required (if Applicable) No disagreement. Corrective Action Planned The Urban League of Port...

Finding 2025‐001: Contact Person NAME: Julia Delgado PHONE: (503) 280-2600 E-Mail: jdelgado@ulpdx.org Explanation and Specific Reasons for Disagreement with the Audit Finding or That Corrective Action is not Required (if Applicable) No disagreement. Corrective Action Planned The Urban League of Portland is committed to an environment of continuous improvement. Further training shall be provided to Program Managers regarding the organizations’ documented internal controls and the importance of adhering to the established approval process. Urban League has currently hired a seasoned Controller and is in the process of hiring an experienced Accounting Manager. Tracking expiring grants more thoroughly and having further reviews in place to assure transactions are recorded within the grant’s agreed upon period of performance shall provide confidence expenses are recorded properly. Anticipated Completion Date May 1, 2024

View Audit 394403

Finding 1186677 (2025-003)

Material Weakness 2025

The Primary Care Coalition of Montgomery County, Maryland, Inc.

MD

Subrecipient Monitoring Internal Control / Segregation of Duties Eligibility

Views of Responsible Official: Management agrees with the finding. Management will develop an alert system for Program Directors to use in tracking their sub-awards and sub-contracted engagement values and related amendments. This system will create an alert when a contract value exceeds $30,000 pro...

Views of Responsible Official: Management agrees with the finding. Management will develop an alert system for Program Directors to use in tracking their sub-awards and sub-contracted engagement values and related amendments. This system will create an alert when a contract value exceeds $30,000 prompting the Program Director to file, or work with appropriate staff to file the FFATA.

View Audit 394372

Finding 1186676 (2025-002)

Material Weakness 2025

The Primary Care Coalition of Montgomery County, Maryland, Inc.

MD

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties § 200.303 § 200.328

Views of Responsible Official: Management agrees with the finding. Management will institute additional calendar alerts and accountability procedures to ensure reports are filed on time. Recognizing that technical issues, illness, and other unforeseen circumstances can arise, Management will institu...

Views of Responsible Official: Management agrees with the finding. Management will institute additional calendar alerts and accountability procedures to ensure reports are filed on time. Recognizing that technical issues, illness, and other unforeseen circumstances can arise, Management will institute a requirement that all late filings must be communicated to the Contract Monitor as soon as the delay is anticipated.

View Audit 394372

Finding 1186658 (2025-001)

Material Weakness 2025

Western North Carolina Aids Project, Inc.

NC

Eligibility Significant Deficiency

2025-001 – Eligibility for Housing Assistance Condition: During the testing of tenant files, certain documentation deficiencies were noted as summarized below: 1 – Incorrect Rental Calculation on Client #20 Corrective Action: Section 1 RE: Incorrect Rental Calculation: The incorrect calculation refe...

2025-001 – Eligibility for Housing Assistance Condition: During the testing of tenant files, certain documentation deficiencies were noted as summarized below: 1 – Incorrect Rental Calculation on Client #20 Corrective Action: Section 1 RE: Incorrect Rental Calculation: The incorrect calculation referenced in this finding was due to a typo, which resulted in an incorrect payment. To catch simple human errors such as this in the future, management will update the rent calculation worksheet to include reminders to double check data entry in fields that are easy to transpose. Management will also update the recertification process to add the following additional steps: The Data Technician will also review the rent calculation worksheet and the supporting documentation to ensure the amounts in the supporting document(s) match the entry in the worksheet; the Housing Coordinator will conduct a randomized audit of at least two rent calculation worksheets each month. Evidence of the improvements made by management is reflected by the significant decrease in the number of deficient records compared to the FY2023-24 audit: 2023-24 Total Deficient Eligibility Records: 2024-25 Total Deficient Eligibility Records: WNCAP expects to see continued improvement in subsequent audits.

View Audit 394359

Finding 1186642 (2025-002)

Material Weakness 2025

Sterling College

KS

Student Financial Aid Significant Deficiency

Contact person responsible for correction action – Mitzi Suhler, Financial Aid Director Anticipated completion date – June 30, 2025 Corrective action Sterling College agrees with the finding. At the time of this noncompliance the College was implementing a new financial aid system (JFA). The financi...

Contact person responsible for correction action – Mitzi Suhler, Financial Aid Director Anticipated completion date – June 30, 2025 Corrective action Sterling College agrees with the finding. At the time of this noncompliance the College was implementing a new financial aid system (JFA). The financial aid system went live in July 2024. The business office module did not go live until November 2024. The college’s IT implemented a bridge to connect the two systems while we waited for the business office module to go live. There were issues with the bridge between the two systems which caused the aid posting process to work inaccurately. We immediately contacted IT to help with the situation, but they took longer than expected to find a solution. Because we knew time was of the essence and our system would be “going dark” (unable to process anything for a period of time), we manually started processing aid in order to post aid to student accounts so that students could receive their refunds. The financial aid system had disbursement dates already set up and all of those dates had to be manually updated. Unfortunately, the College missed updating one date for the student that was found during audit, and the date that was reported to COD was the original disbursement date instead of the actual disbursement date. The system no longer requires the bridge, and we have not experienced any issues since all systems came on board. Now that the system is working properly, there is a process that looks at the disbursement date on the student account and compares it to what the financial aid system has in place. If the dates do not match, the system automatically updates the disbursement date in the financial aid system and there is a file that is generated to send an update to COD automatically. We do not expect to have this issue in the future but have implemented processes to review disbursement dates through the reconciliation process in the new system.

View Audit 394339

Finding 1186641 (2025-001)

Material Weakness 2025

Sterling College

KS

Student Financial Aid Eligibility Significant Deficiency

Contact person responsible for correction action – Mitzi Suhler, Financial Aid Director Anticipated completion date – June 30, 2025 Corrective action Sterling College agrees with the finding. At the time of noncompliance the college was transitioning to a new financial aid system. The compliance eng...

Contact person responsible for correction action – Mitzi Suhler, Financial Aid Director Anticipated completion date – June 30, 2025 Corrective action Sterling College agrees with the finding. At the time of noncompliance the college was transitioning to a new financial aid system. The compliance engine of the new system was set up but there was a gap in the compliance which allowed aid for students who were not enrolled to post without warning. The issue was found by the financial aid administrators and corrected as soon as it was discovered. Upon finding the issues, the financial aid administrators reached out to the IT department for more training on the compliance portion of the software and have worked diligently to update the system and put in place processes that will ensure that aid is canceled for students that are not enrolled. The system also has compliance setup to ensure checks and balances are in place to look for students who are eligible to receive aid and will not post aid for students who are not enrolled even if the aid has not been canceled before the official disbursement date.

View Audit 394339

Finding 1186637 (2025-001)

Material Weakness 2025

Waimanalo Health Center

HI

Special Tests & Provisions Eligibility Significant Deficiency

Health Resources and Services Administration Mary Frances Oneha, Waimanalo Health Center’s CEO respectfully submits the following corrective action plan for the year ended June 30, 2025: CohnReznick LLP 1301 Avenue of the Americas New York, NY 10019 Audit Period: June 30, 2025 Item 2025-001 - Specia...

Health Resources and Services Administration Mary Frances Oneha, Waimanalo Health Center’s CEO respectfully submits the following corrective action plan for the year ended June 30, 2025: CohnReznick LLP 1301 Avenue of the Americas New York, NY 10019 Audit Period: June 30, 2025 Item 2025-001 - Special Tests and Provisions - U.S. Department of Health and Human Services, Health Center Program Cluster (Assistance Listing Number 93.224/93.527) Notice of Award Number 6, 2 H80CS00646-24-01, 1 H8LCS51923-01-00 for 2024 and 2025, 1 H8NCS54043-01- 00 for 2025 - (Significant Deficiency) During our audit, we noted that the Center did not properly determine the sliding fee discount for one eligible patient, based on information provided during the patient registration process. Recommendation We recommend that the Center provide training to all personnel involved in determining patients’ sliding fee discounts. In addition, we recommend that an internal audit of a sample of patient charts be conducted periodically to verify that sliding fee scale discounts or categories are properly and accurately determined based on the information provided by patients. Finally, we recommend that the results of such internal audits be formally documented. Action Taken Management agrees with the finding and will be establishing policies and procedures and conducting training for all personnel involved in determining patients' sliding fee discounts to help ensure the accuracy of the process. Management will also implement an internal audit of a sample of patient charts and will ensure that such audits are properly documented. Effectivity Date: June 30, 2026

View Audit 394336

Finding 1186609 (2025-001)

Material Weakness 2025

Page Unified School District No. 8

AZ

Procurement, Suspension & Debarment Special Tests & Provisions Reporting

2025-001 Certified Payroll Reporting Federal Assistance Listing Number: 84.041 Program: Impact Aid Federal Agency: U.S. Department of Education Pass-Through Number: N/A Compliance Requirement: N. Special Tests and Provisions Award Period: July 1, 2024 – June 30, 2025 Type of Finding: Noncompliance (...

2025-001 Certified Payroll Reporting Federal Assistance Listing Number: 84.041 Program: Impact Aid Federal Agency: U.S. Department of Education Pass-Through Number: N/A Compliance Requirement: N. Special Tests and Provisions Award Period: July 1, 2024 – June 30, 2025 Type of Finding: Noncompliance (Other Matter), significant deficiency in internal control Questioned Costs: $-0- Repeat Finding: Similar to finding 2024-002. Condition/Context: The District did not retain documentation sufficient to determine the Davis-Bacon compliance clause was included in advertised specifications for construction projects paid with federal Impact Aid monies. In addition, for nine of 10 vendors selected weekly certified payrolls were not collected and maintained for any relevant weeks during the fiscal year. Corrective Action: The District will implement monitoring procedures over the procurement process to ensure provisions of the Davis-Bacon Act are implemented into contracts and that certified payrolls are obtained, when necessary. Planned completion date for corrective action plan: For the period ending June 30, 2026. Name of the contact person responsible for corrective action: Lori Wilson, Business Manager

View Audit 394314

Finding 1186605 (2025-005)

Material Weakness 2025

Summit Academy Oic

MN

Student Financial Aid Significant Deficiency Internal Control / Segregation of Duties

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend that the Academy implemented a process to ensure credit balances are returned timely based on the regulations set forth by the Department of Education. Explanation of disagreement with audit finding: T...

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend that the Academy implemented a process to ensure credit balances are returned timely based on the regulations set forth by the Department of Education. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Financial Aid Coordinators have been instructed to run the credit balance report more frequently after aid has been posted to identify students with a credit balance. Also, once a request has been made to rectify the credit balance, it will become top priority to ensure its completion is within 10 days. Name(s) of the contact person(s) responsible for corrective action: Rachael Farnell Planned completion date for corrective action plan: 07/01/2025 If the Department of Education has questions regarding this plan, please call Rachael Farnell at (612-278-5271)

View Audit 394300

Finding 1186604 (2025-004)

Material Weakness 2025

Summit Academy Oic

MN

Student Financial Aid Significant Deficiency Internal Control / Segregation of Duties

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the Academy reevaluate its policies around accurate R2T4 calculations as well as timely return of funds to COD. Explanation of disagreement with audit finding: There is no disagreement with the audit f...

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the Academy reevaluate its policies around accurate R2T4 calculations as well as timely return of funds to COD. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: R2T4 calculations will now be handled by the Financial Aid Manager & to ensure timely refunds; the Financial Aid Manager will process R2T4’s every two weeks to ensure the timeliness of any refunds. Name(s) of the contact person(s) responsible for corrective action: Rachael Farnell Planned completion date for corrective action plan: 07/01/2025

View Audit 394300

Finding 1186603 (2025-003)

Material Weakness 2025

Summit Academy Oic

MN

Student Financial Aid Eligibility Significant Deficiency

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the Academy implement a process to ensure student is being properly awarded based on their SAI and enrollment status. Explanation of disagreement with audit finding: There is no disagreement with the a...

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the Academy implement a process to ensure student is being properly awarded based on their SAI and enrollment status. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Financial Aid Coordinators now have a corrected calculator to use when determining the student’s Pell eligibility based on their SAI. The Financial Aid Manager will also look over the award to ensure proper funding has been put into place. Name(s) of the contact person(s) responsible for corrective action: Rachael Farnell Planned completion date for corrective action plan: 07/01/2025

View Audit 394300

Finding 1186602 (2025-002)

Material Weakness 2025

Summit Academy Oic

MN

Student Financial Aid Reporting Significant Deficiency § 200.303

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the Academy reevaluate its procedures and review policies surrounding controls implemented for Title IV Aid. Explanation of disagreement with audit finding: There is no disagreement with the audit find...

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the Academy reevaluate its procedures and review policies surrounding controls implemented for Title IV Aid. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Per finding 2025-002, Summit Academy has been completing the control piece when processing Title IV aid. To further the control of this process, the Financial Aid Manager will provide initials to show evidence of review. Name(s) of the contact person(s) responsible for corrective action: Rachael Farnell Planned completion date for corrective action plan: 07/01/2025

View Audit 394300

Finding 1186601 (2025-001)

Material Weakness 2025

Summit Academy Oic

MN

Student Financial Aid Reporting Significant Deficiency

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the Academy reevaluate its procedures and review policies surrounding reporting status changes to NSLDS to put a process in place to ensure the student status changes are being reported timely. Explana...

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the Academy reevaluate its procedures and review policies surrounding reporting status changes to NSLDS to put a process in place to ensure the student status changes are being reported timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Financial Aid Manager will run reports every thirty days and students will be certified in NSLDS every 30 days to ensure their enrollment status is reported in a timely manner. The Financial Aid Manager is also tracking the NSLDS changes on a spreadsheet. Name(s) of the contact person(s) responsible for corrective action: Rachael Farnell Planned completion date for corrective action plan: 07/01/2025

View Audit 394300

Finding 1186589 (2025-001)

Material Weakness 2025

Women in Safe Homes, Inc.

AK

Subrecipient Monitoring Allowable Costs / Cost Principles HUD Housing Programs

Federal Single Audit Finding: 2025-001 Reporting - Significant Deficiency in Internal Control over Compliance Name of Contact Person: Adrienne Gaines, Executive Director Corrective Action: WISH will reinforce existing policies requiring documented evidence of review and approval for all key reports....

Federal Single Audit Finding: 2025-001 Reporting - Significant Deficiency in Internal Control over Compliance Name of Contact Person: Adrienne Gaines, Executive Director Corrective Action: WISH will reinforce existing policies requiring documented evidence of review and approval for all key reports. These controls will ensure approval via physical signature or electronic approval via email correspondence of each key report. Periodic monitoring will be performed to ensure compliance with documentation requirements. Proposed Completion Date: June 30, 2026

View Audit 394292

Finding 1186587 (2025-002)

Material Weakness 2025

Housing for Rockdale Elders, Inc.

MA

HUD Housing Programs Special Tests & Provisions Subrecipient Monitoring

CORRECTIVE ACTION PLAN March 18, 2026 Housing for Rockdale Elders, Inc. respectfully submits the following corrective action plans for the year ended October 31, 2025: Name and address of independent accounting firm: CohnReznick LLP 350 Granite Street Suite 1200 Braintree MA 02184 Audit period: Nove...

CORRECTIVE ACTION PLAN March 18, 2026 Housing for Rockdale Elders, Inc. respectfully submits the following corrective action plans for the year ended October 31, 2025: Name and address of independent accounting firm: CohnReznick LLP 350 Granite Street Suite 1200 Braintree MA 02184 Audit period: November 1, 2024 - October 31, 2025 The findings from the October 31, 2025 schedule of findings and questioned costs is discussed below. The findings are numbered consistently with the number assigned in the schedule. Finding 2025-002 - Special Tests and Provisions - Significant Deficiency Recommendation: We recommend that the Corporation establish internal controls over its residual receipts compliance requirements to ensure that the Corporation is in compliance with Uniform Guidance and its regulatory agreement. Action Taken: Management agrees with the finding and is in the process of revising internal controls to address this issue. Additionally, on February 9, 2026, this was corrected.

View Audit 394285

Finding 1182964 (2025-305)

Material Weakness 2025

State of Wisconsin

WI

Eligibility Significant Deficiency

Department staff has reviewed the Legislative Audit Bureau’s (LAB) interim audit memo for Finding 2025-305: Grants to States for Medicaid – Posting of Managed Care Entity Financial Audits. This is the department’s Corrective Action Plan.  Recommendation (2025-305): Grants to States for Medicaid – P...

Department staff has reviewed the Legislative Audit Bureau’s (LAB) interim audit memo for Finding 2025-305: Grants to States for Medicaid – Posting of Managed Care Entity Financial Audits. This is the department’s Corrective Action Plan.  Recommendation (2025-305): Grants to States for Medicaid – Posting of Managed Care Entity Financial Audits We recommend the Wisconsin Department of Health Services develop and implement procedures to ensure the results of the periodic audits of managed care organizations are posted to the State’s website in a timely manner. Wisconsin Department of Health Services Planned Corrective Action: DHS will establish a tracking process to post the summary results of the managed care entity financial audits to the State’s website in a timely manner. Anticipated Completion Date: June 30, 2026 Persons responsible for corrective action Grant Cummings, Director Bureau of Rate Setting, Division of Medicaid Services grantr.cummings@dhs.wisconsin.gov

View Audit 394279

Finding 1182963 (2025-304)

Material Weakness 2025

State of Wisconsin

WI

Eligibility Reporting Significant Deficiency § 200.302

Department staff has reviewed the Legislative Audit Bureau’s (LAB) interim audit memo for Finding 2025-304: Grants to States for Medicaid – Medical Status Code Errors. This is the department’s Corrective Action Plan.  Recommendation (2025-304): Grants to States for Medicaid – Medical Status Code Er...

Department staff has reviewed the Legislative Audit Bureau’s (LAB) interim audit memo for Finding 2025-304: Grants to States for Medicaid – Medical Status Code Errors. This is the department’s Corrective Action Plan.  Recommendation (2025-304): Grants to States for Medicaid – Medical Status Code Errors. We recommend the Wisconsin Department of Health Services ensure the accuracy of the medical status code by: • Implementing and testing the needed updates to CARES to correct the errors in the assigned medical status code; • Completing an assessment of the effect of the identified errors in the medical status code on accounting entries, required federal reporting, and making any necessary corrections; and • Prepare and maintain documentation of its annual review and assessment. Wisconsin Department of Health Services Planned Corrective Action: The Division of Medicaid Services (DMS) identified issues with Medical Status codes prior to the beginning of the audit. DMS directed the Enrollment & Eligibility System vendor to identify and implement a system correction. Concurrently, the LAB identified the issue as part of their current year audit fieldwork. The correction was included in the February 2026 system update which is expected to address the concerns underlying this finding. Additionally, DMS will complete an assessment of potential effects on required federal reporting and make any adjustments. Anticipated Completion Date: June 30, 2026 Persons responsible for corrective action: Hannah Stephens, Section Manager Bureau of Fiscal Accountability and Management, Division of Medicaid Services, hannah.stephens@dhs.wisconsin.gov

View Audit 394279

Finding 1182962 (2025-302)

Material Weakness 2025

State of Wisconsin

WI

Reporting Internal Control / Segregation of Duties Cash Management § 200.303

Department staff has reviewed the Legislative Audit Bureau’s (LAB) interim audit memo for Finding 2025-302: Grants to States for Medicaid and Children’s Health Insurance Program – Agency Directives. This is the department’s Corrective Action Plan.  Recommendation (2025-302): Grants to States for Me...

Department staff has reviewed the Legislative Audit Bureau’s (LAB) interim audit memo for Finding 2025-302: Grants to States for Medicaid and Children’s Health Insurance Program – Agency Directives. This is the department’s Corrective Action Plan.  Recommendation (2025-302): Grants to States for Medicaid and Children’s Health Insurance Program – Agency Directives. We recommend the Wisconsin Department of Health Services: • Enforce with the fiscal agent that directives require appropriate approval and that the fiscal agent should confirm any directive where the approver may not be authorized; • Ensure that the listings of authorized directive approvers provided to the fiscal agent are updated at least quarterly; • Review policies related to directives, updated the policies to identify those directives that require an approver other than the creator, and document justifications for any directives for which the creator and approver may be the same employee; and • Access the feasibility of changes to the PRISM system that would enforce an approval from a user other than the creator of a directive. Wisconsin Department of Health Services Planned Corrective Action: DMS will ensure that the fiscal agent follows DHS policy to confirm directive approvals. In addition, DHS will update the authorized approvers list at least quarterly, define in policy when an approver other than the creator is needed, and consider changes to the PRISM system to enforce separation of duties between creator and approver. If system changes are feasible, the corrective actions will require additional time to complete beyond what is needed for the policy and procedure changes. Anticipated Completion Date: June 30, 2026 Persons responsible for corrective action: Carrie Kahn, Section Manager Systems Infrastructure Accountability Section, Bureau of Fiscal Accountability and Management, Division of Medicaid Services CarriePKahn@dhs.wisconsin.gov

View Audit 394279

Finding 1182961 (2025-301)

Material Weakness 2025

State of Wisconsin

WI

Cash Management Eligibility Significant Deficiency

Department staff has reviewed the Legislative Audit Bureau’s (LAB) interim audit memo for Finding 2025-301: Grants to States for Medicaid and Children’s Health Insurance Program – Computer Data Matches. This is the department’s Corrective Action Plan.  Recommendation (2025-301): Grants to States fo...

Department staff has reviewed the Legislative Audit Bureau’s (LAB) interim audit memo for Finding 2025-301: Grants to States for Medicaid and Children’s Health Insurance Program – Computer Data Matches. This is the department’s Corrective Action Plan.  Recommendation (2025-301): Grants to States for Medicaid and Children’s Health Insurance Program – Computer Data Matches. We recommend the Wisconsin Department of Health Services: • Identify and implement procedures to monitor the timeliness with which data match discrepancies are resolved and perform follow-up with local agencies as needed; and • Continue efforts to assess solutions for resolving state wage information collection agency data match discrepancies in a timely manner to determine if system or policy changes are needed. Wisconsin Department of Health Services Planned Corrective Action: Beginning in February 2026, the Medicaid Eligibility Quality Control Unit will include State Wage Information Collection Agency (SWICA) discrepancies in the monthly report that is available to Income Maintenance (IM) agencies through SharePoint. IM workers are expected to address the discrepancies. The Medicaid Eligibility Quality Control Unit will monitor the agencies to ensure they are completing the SWICA work. Prior to receipt of this finding in the fall of 2025, DHS initiated a project to assess the current state of SWICA discrepancy processing, develop solutions to improve the process, and consider automation options. The Bureau of Eligibility Operations and Training and the Bureau of Eligibility Enrollment and Policy are currently weighing several proposed solutions. If it is determined that changes to CARES are required, the project completion will depend on prioritization and coordination of CARES updates. Anticipated Completion Date: November 2027 Persons responsible for corrective action: Jonelle Brom, Director Bureau of Eligibility Operations and Training, Division of Medicaid Services Jonellem.Brom@dhs.wisconsin.gov

View Audit 394279

Finding 1182960 (2025-306)

Material Weakness 2025

State of Wisconsin

WI

Allowable Costs / Cost Principles Procurement, Suspension & Debarment Cash Management § 200.403 § 200.406

Department staff has reviewed the Legislative Audit Bureau’s (LAB) interim audit memo for Finding 2025-306: Children’s Health Insurance Program – Reconciliation of Vaccine Purchases. This is the department’s Corrective Action Plan.  Recommendation (2025-306): Children’s Health Insurance Program – R...

Department staff has reviewed the Legislative Audit Bureau’s (LAB) interim audit memo for Finding 2025-306: Children’s Health Insurance Program – Reconciliation of Vaccine Purchases. This is the department’s Corrective Action Plan.  Recommendation (2025-306): Children’s Health Insurance Program – Reconciliation of Vaccine Purchases We recommend the Wisconsin Department of Health Services comply with federal regulations and ensure it performs annual reconciliations to calculate any differences between the estimated cost and the actual cost of vaccines for SCHIP participants and then adjusts the estimate for vaccine purchases funded from the Children’s Health Insurance Program (CHIP). Wisconsin Department of Health Services Planned Corrective Action: The Division of Enterprise Services and the Division of Public Health worked together to complete the reconciliation and adjust the estimate for FFY 2026. However, this work was done after the end of the audit period. This work effectively returned the $2.6 million in unallowable costs included in the memo to the federal government. The divisions will continue to work together to perform an annual reconciliation and adjust the estimate going forward. Anticipated Completion Date: September 1, 2026 Persons responsible for corrective action Becky Mogensen, Section Chief Managerial Accounting Section, Bureau of Fiscal Services, Division of Enterprise Services rebeccaj.mogensen@dhs.wisconsin.gov Elizabeth Brotheridge, Section Manager Communicable Disease Administration Section, Bureau of Communicable Diseases, Division of Public Health elizabeth.brotheridge@dhs.wisconsin.gov

View Audit 394279

Finding 1182956 (2025-300)

Material Weakness 2025

State of Wisconsin

WI

Eligibility Cash Management Significant Deficiency

Department staff has reviewed the Legislative Audit Bureau’s (LAB) interim audit memo for Finding 2025-300: Eligibility for the Children’s Health Insurance Program. This is the department’s Corrective Action Plan.  Recommendation (2025-300): Eligibility for the Children’s Health Insurance Program W...

Department staff has reviewed the Legislative Audit Bureau’s (LAB) interim audit memo for Finding 2025-300: Eligibility for the Children’s Health Insurance Program. This is the department’s Corrective Action Plan.  Recommendation (2025-300): Eligibility for the Children’s Health Insurance Program We recommend the Wisconsin Department of Health Services continue its efforts to monitor for Children’s Health Insurance Program participants who exceed the age requirement to ensure they are identified and removed in a timely manner. Wisconsin Department of Health Services Planned Corrective Action: On August 1, 2025, a CARES Coordinator Notice was sent to Income Maintenance agencies to emphasize the Monthly BC CHIP Report, which provides a list of individuals aging out of the program in the following month. Beginning with this notification, agencies were required to work the cases on the list and notify DHS of completion on or before the 10th of each month. Since August 2025, agencies have followed the directives in the notice and are informing DHS when work is completed on each case. Anticipated Completion Date: August 2025 Persons responsible for corrective action: Jonelle Brom, Director Bureau of Eligibility Operations and Training, Division of Medicaid Services Jonellem.Brom@dhs.wisconsin.gov

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Finding 1182951 (2025-503)

Material Weakness 2025

State of Wisconsin

WI

Significant Deficiency

This letter is the Wisconsin Department of Transportation's response and corrective action plan for the finding and recommendations made by the State of Wisconsin Legislative Audit Bureau (LAB) in the interim memo dated February 19, 2026. Finding 2025-503: Airport Improvement Program, Infrastructure...

This letter is the Wisconsin Department of Transportation's response and corrective action plan for the finding and recommendations made by the State of Wisconsin Legislative Audit Bureau (LAB) in the interim memo dated February 19, 2026. Finding 2025-503: Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and COVID-19 Airports Programs—Wage Rate Requirements The Wisconsin Department of Transportation (WisDOT) agrees with the audit finding. Planned Corrective Action: • The WisDOT Bureau of Aeronautics (BOA) will establish procedures to ensure timely and accurate certified payroll reporting for Airport Improvement Program (AIP) projects. This includes contractor reporting in the Civil Rights Compliance System (CRCS); onsite activity reporting by contractors, engineers, and BOA project managers; and enforcement by the BOA Aeronautical and Technical Services Section Labor Compliance Team. • BOA will update AES-43 Airport Engineering Procedures to strengthen Davis-Bacon Act compliance, including comprehensive project activity reporting through project completion and final payment. BOA project managers will verify reporting and coordinate with the Labor Compliance Section using weekly progress updates. • BOA will maintain project completion documentation to support proper closeout of airport development projects subject to Davis-Bacon requirements. Anticipated Completion Date: May 2026 Person responsible for corrective action: Shannon Clary, Labor Compliance and DBE Program Manager Airport Technical Services Section WisDOT- Division of Transportation Investment Management, Bureau of Aeronautics Shannon.Clary@dot.wi.gov

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Corrective Action Plans

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