Corrective Action Plans

Finding 1214232 (2025-006)

Material Weakness 2025

ATLANTIC CITY HOUSING AUTHORITY & URBAN REDEVELOPMENT AGENCY

CA

Special Tests & Provisions HUD Housing Programs Material Weakness

Finding 2025-006: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Catalog Numbers: 14.871 & 14.EHV Noncompliance – N. Special Tests and Provisions - Housing Quality Standards Non Compliance Material to the Financial Statements:...

Finding 2025-006: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Catalog Numbers: 14.871 & 14.EHV Noncompliance – N. Special Tests and Provisions - Housing Quality Standards Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Special Tests and Provisions Criteria: Criteria: HQS Inspections. Per the Authority's HCV Admin Plan, the PHA must inspect the unit leased to a family at least annually to determine if the unit meets HQS standards and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). These inspection reports are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority’s files and on discussion with management there were inspection reports that were unavailable for examination at the time of audit. Context: Of a sample size of twenty-four (24) units, thirteen (13) units did not have annual HQS inspections performed timely. Our sample size is statistically valid. Known Questioned Costs: $131,112 Cause: There is a material weakness in internal controls over the compliance for the special tests and provisions type of compliance related to HQS inspections. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Housing Voucher Cluster is in material non-compliance with the with the special tests and provisions type of compliance related to HQS inspections. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance related to HQS inspections in accordance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority has recognized the significant deficiency in the Housing Voucher Cluster Programs and will implement internal control procedures that will ensure compliance with federal regulations. Malcom Isler, HCV Program Director/Interim Deputy Executive Director is responsible for ensuring proper internal controls are in place to prevent significant deficiencies and material weaknesses from occurring and is expected to be completed by July 31, 2026.

View Audit 400937

Finding 1214224 (2025-002)

Material Weakness 2025

Community Housing Iii, Inc. Fir Grove Apartments

OR

HUD Housing Programs Special Tests & Provisions Subrecipient Monitoring

Federal Award Findings and Questioned Costs Item 2025-002 Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly (Section 202) Federal Assistance Listing Number: 14.157 Recommendation: Management should establish procedures a...

Federal Award Findings and Questioned Costs Item 2025-002 Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly (Section 202) Federal Assistance Listing Number: 14.157 Recommendation: Management should establish procedures and monitor compliance with those procedures to insure that move out inspections are performed timely, security deposits are returned timely and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Action Taken: REACH has policies in place to return security deposits in a timely manner but was delayed in issuing the security deposit refund for this unit due to staffing issues. In 2026 property management will be outsourced to a third-party management company to address any outstanding compliance issues.

View Audit 400934

Finding 1214222 (2025-001)

Material Weakness 2025

Community Housing Iii, Inc. Fir Grove Apartments

OR

Eligibility HUD Housing Programs Subrecipient Monitoring

Federal Award Findings and Questioned Costs Item 2025-001 Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly (Section 202) Federal Assistance Listing Number: 14.157 Recommendation: Management should establish procedures a...

Federal Award Findings and Questioned Costs Item 2025-001 Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly (Section 202) Federal Assistance Listing Number: 14.157 Recommendation: Management should establish procedures and monitor compliance with those procedures to insure that EIVs and recertifications are performed timely, inspections are completed, waitlists are being completed and followed, tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Action Taken: REACH has policies in place to complete certifications in a timely manner but due to staffing shortages at the property continued to have issues with timely completion of income certifications in 2025. In 2026 property management will be outsourced to a third-party management company to address outstanding compliance issues.

View Audit 400934

Finding 1214220 (2025-003)

Material Weakness 2025

Community Housing Ii, Inc. the Maples II Apartments

OR

Eligibility HUD Housing Programs Special Tests & Provisions

Federal Award Findings and Questioned Costs Item 2025-003 Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly Federal Assistance Listing Number: 14.157 Recommendation: Management should establish procedures and monitor com...

Federal Award Findings and Questioned Costs Item 2025-003 Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly Federal Assistance Listing Number: 14.157 Recommendation: Management should establish procedures and monitor compliance with those procedures to ensure that the determination of tenant eligibility and the maintenance of lease files are in accordance with guidelines specified by HUD. Action Taken: REACH has policies in place to complete move in inspections but due to tenant noncompliance and staffing issues this inspection was missed. Management scheduled training with staff in March 2026.

View Audit 400933

Finding 1214218 (2025-002)

Material Weakness 2025

Community Housing Ii, Inc. the Maples II Apartments

OR

HUD Housing Programs Special Tests & Provisions Subrecipient Monitoring

Federal Award Findings and Questioned Costs Item 2025-002 Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly Federal Assistance Listing Number: 14.157 Recommendation: Management should establish procedures and monitor com...

Federal Award Findings and Questioned Costs Item 2025-002 Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly Federal Assistance Listing Number: 14.157 Recommendation: Management should establish procedures and monitor compliance with those procedures to ensure that move out inspections are performed timely, security deposits are returned timely and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Action Taken: REACH has policies in place to return security deposits in a timely manner but was slightly delayed in issuing the security deposit refund for this unit. Management reviewed with the teams to ensure rent refunds would be processed within 30 days.

View Audit 400933

Finding 1214216 (2025-001)

Material Weakness 2025

Community Housing Ii, Inc. the Maples II Apartments

OR

Eligibility HUD Housing Programs Subrecipient Monitoring

Federal Award Findings and Questioned Costs Item 2025-001 Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly Federal Assistance Listing Number: 14.157 Recommendation: Management should establish procedures and monitor com...

Federal Award Findings and Questioned Costs Item 2025-001 Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly Federal Assistance Listing Number: 14.157 Recommendation: Management should establish procedures and monitor compliance with those procedures to ensure that EIVs are performed timely, tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Action Taken: REACH has policies in place to complete EIVs and recertifications in a timely manner but due to staffing shortages and tenant noncompliance issues the property continued to have issues with timely completion of income certifications in 2025. In 2026 property management will be outsourced to third party management company to address outstanding compliance issues.

View Audit 400933

Finding 1214214 (2025-002)

Material Weakness 2025

Powell Boulevard Apartments, Inc.

OR

HUD Housing Programs Subrecipient Monitoring Allowable Costs / Cost Principles

Federal Award Findings and Questioned Costs Item 2025-002 Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for Persons with Disabilities Program Federal Assistance Listing Number: 14.181 Recommendation: Management should review the HUD...

Federal Award Findings and Questioned Costs Item 2025-002 Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for Persons with Disabilities Program Federal Assistance Listing Number: 14.181 Recommendation: Management should review the HUD-52670 and HUD-52670-A every month to ensure that it contains the correct tenants and amounts requested. Action Taken: REACH has policies in place to ensure that HAP funds received are only for current tenants. Due to staffing issues there was a delay in updating the HAP contract. All excess funds received will be returned to HUD.

View Audit 400931

Finding 1214212 (2025-001)

Material Weakness 2025

Powell Boulevard Apartments, Inc.

OR

Eligibility HUD Housing Programs Subrecipient Monitoring

Federal Award Findings and Questioned Costs Item 2025-001 Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for Persons with Disabilities Program Federal Assistance Listing Number: 14.181 Recommendation: Management should establish proc...

Federal Award Findings and Questioned Costs Item 2025-001 Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for Persons with Disabilities Program Federal Assistance Listing Number: 14.181 Recommendation: Management should establish procedures and monitor compliance with those procedures to insure that recertifications are performed timely and signed, tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Action Taken: REACH has policies in place to complete certifications and EIVs in a timely manner but due to staffing shortages at the property continued to have issues with timely completion of income certifications in 2025. In 2026 property management will be outsourced to a third party management company to address outstanding compliance issues.

View Audit 400931

Finding 1214206 (2025-002)

Material Weakness 2025

Community Housing, Inc.

OR

Special Tests & Provisions Subrecipient Monitoring HUD Housing Programs

Federal Award Findings and Questioned Costs Item 2025-002 Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly (Section 202) Federal Assistance Listing Number: 14.157 Recommendation: Management should address all deficienci...

Federal Award Findings and Questioned Costs Item 2025-002 Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly (Section 202) Federal Assistance Listing Number: 14.157 Recommendation: Management should address all deficiencies identified in the NSPIRE Physical Inspection in a timely manner to ensure compliance with HUD regulations. Action Taken: REACH has policies in place to address deficiencies identified in the NSPIRE Physical Inspections but due to staffing shortages was having issues addressing them in a timely manner. REACH has cleared all deficiencies and submitted all requested materials to HUD and is awaiting the close-out confirmation letter.

View Audit 400927

Finding 1214204 (2025-001)

Material Weakness 2025

Community Housing, Inc.

OR

Eligibility HUD Housing Programs Subrecipient Monitoring

Federal Award Findings and Questioned Costs Item 2025-001 Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly (Section 202) Federal Assistance Listing Number: 14.157 Recommendation: Management should establish procedures a...

Federal Award Findings and Questioned Costs Item 2025-001 Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly (Section 202) Federal Assistance Listing Number: 14.157 Recommendation: Management should establish procedures and monitor compliance with those procedures to ensure that recertifications are performed timely and signed, tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Action Taken: REACH has policies in place to complete EIVs and recertifications in a timely manner but due to staffing shortages and tenant noncompliance issues the property continued to have issues with timely completion of income certifications in 2025. In 2026 property management will be outsourced to third party management company to address outstanding compliance issues.

View Audit 400927

Finding 1214169 (2025-034)

Material Weakness 2025

Commonwealth of Massachusetts

MA

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

2025-034 Medicaid Cluster 93.775, 93.777, 93.778 Recommendation: The Department should enhance its procedures and internal controls to ensure it maintains documentation of participant eligibility and that this documentation is readily available for audit. Action taken in response to finding: Current...

2025-034 Medicaid Cluster 93.775, 93.777, 93.778 Recommendation: The Department should enhance its procedures and internal controls to ensure it maintains documentation of participant eligibility and that this documentation is readily available for audit. Action taken in response to finding: Currently, when a document is received at a MassHealth Enrollment Center, it is the worker’s responsibility to collect the documentation and send it to the Electronic Document Management Center (EDMC) in New Bedford. Once the document is received it is prepped, scanned, and indexed to enable a worker to process the documentation within our eligibility system. We are proposing a short-term and long-term solution to address the audit finding. Short term solution: This approach involves minimal modifications to the current operational process and can be quickly put into practice across all locations. All staff at the MassHealth document received at a MEC that was submitted by applicants or members. Subsequently, the document must be mailed to EDMC for further processing. Long term solution: Implementing this solution will involve modifications to the current operational processes and workflows within MassHealth Eligibility Operations and the system. To facilitate this, we plan to initiate a comprehensive internal discussion involving different teams to gather insights, understand existing procedures, and identify areas where changes are needed to support the new solution. Once these preliminary discussions are completed, we will work with the relevant stakeholders to begin the development of the specific requirements that the new process will entail. Name(s) of the contact person(s) responsible for corrective action: Tosin Adebiyi, Director of Special Eligibility Programs and Audits, Marco Gonzales, Eligibility Quality Assurance Team Leader, April Aguiar, Director of EDMC, Rosana Senise, Director of MassHealth Eligibility Planned completion date for corrective action plan: Short Term solution: April 1, 2026, Long Term solution: December 2027

View Audit 400886

Finding 1214165 (2025-033)

Material Weakness 2025

Commonwealth of Massachusetts

MA

Eligibility Special Tests & Provisions Allowable Costs / Cost Principles § 200.303

2025-033 Medicaid Cluster 93.775, 93.777, 93.778 Recommendation: The Department should enhance its procedures and internal controls to ensure it maintains documentation that claims are paid only to eligible providers and that documentation is readily available for audit. Action taken in response to ...

2025-033 Medicaid Cluster 93.775, 93.777, 93.778 Recommendation: The Department should enhance its procedures and internal controls to ensure it maintains documentation that claims are paid only to eligible providers and that documentation is readily available for audit. Action taken in response to finding: MassHealth plans to run a quarterly report to identify dental providers who are 3 months away from revalidation. MassHealth plans to share the report with DentaQuest to ensure that the revalidation process begins in a timely manner. Additionally, MassHealth has streamlined the maintenance of revalidation documentation by requiring DentaQuest to upload the documentation directly into MassHealth’s Medicaid Management Information System (MMIS). MassHealth has updated its provider agreement processing procedures and now requires DentaQuest to upload executed provider agreements directly into MassHealth’s MMIS. MassHealth plans to identify any additional dental providers (if any) who may be overdue for revalidation and share such information with DentaQuest and plans to instruct DentaQuest to reach out to the identified providers in order to begin the revalidation process. MassHealth instructed DentaQuest to: (1) generate revalidation letters; and (2) send providers revalidation letters, as appropriate, via email. Name(s) of the contact person(s) responsible for corrective action: Tuyen Vu, Deputy Director, Dental Planned completion date for corrective action plan: MassHealth anticipates implementing the above updated processes in the second quarter of calendar year 2026.

View Audit 400886

Finding 1214160 (2025-031)

Material Weakness 2025

Commonwealth of Massachusetts

MA

Eligibility Student Financial Aid HUD Housing Programs § 200.303

2025-031 Adoption Assistance 93.659 Recommendation: The Department should enhance its procedures and internal controls to ensure it maintains documentation of participant eligibility and child abuse and neglect registry checks, and that this documentation is readily available for audit. We also reco...

2025-031 Adoption Assistance 93.659 Recommendation: The Department should enhance its procedures and internal controls to ensure it maintains documentation of participant eligibility and child abuse and neglect registry checks, and that this documentation is readily available for audit. We also recommend the Department enhance the renewal letter to include the reaffirmation of the original subsidy agreement date by the participant. Action taken in response to finding: For the finding related to signed adoption subsidy agreements, the Department has already implemented corrective actions to improve its process of maintaining signed adoption subsidy agreements. We built the capacity to upload electronic documents into iFamilyNet in July 2022, and we now ensure that all prospectively signed agreements are uploaded into the child’s iFamilyNet record. In addition, since July 2023, during the Title IV-E eligibility determination process, the eligibility specialist verifies that the signed adoption subsidy agreement has been uploaded. The Department will also explore the auditor’s recommendation to enhance the renewal letter to include the reaffirmation of the original subsidy agreement date by the participant to see if it is technically feasible. Although the Department was unable to produce a copy of a signed subsidy agreement, the Department has controls to oversee that a subsidy agreement was executed prior to legalization of the adoption through a built-in workflow process in our i-FamilyNet system. For the other 39 sample cases, the dates of the signatures by the Department and the pre-adoptive parents recorded in iFamilyNet matched the signature dates on the copies of the original signed agreements. Hence, the Department asserts the dates entered were accurate. We unfortunately could not produce the document to demonstrate that to the auditors. For the finding relating to out-of-state child welfare checks, the Department has already implemented corrective actions to improve its process of documenting requests of out-of-state child welfare checks. In February 2023, the Department integrated the out-of-state child welfare check into the Background Record Check (BRC) section of the foster home licensing process where it can be documented and included as part of the assessment. The Department also added a value to our “contact purpose” drop down menu within the dictation screen in iFamilyNet to capture structured data that an out-of-state child welfare check was made. Name(s) of the contact person(s) responsible for corrective action: Sharon Silvia, Assistant Commissioner of Permanency COMMONWEALTH OF MASSACHUSETTS CORRECTIVE ACTION PLAN YEAR ENDED JUNE 30, 2025 Planned completion date for corrective action plan: Signed Subsidy Agreements: • July 2022 – capacity to upload electronic documents into iFamilyNet (complete) • July 2023 – eligibility specialist verifies that the signed adoption subsidy agreement has been uploaded (complete) • July 2026 – assess technical feasibility of enhancing the renewal letter Out-of-State Child Welfare Checks: • February 2023 – integrated out-of-state child welfare checks into BRC section and added value to contact purpose drop down (complete)

View Audit 400886

Finding 1214152 (2025-028)

Material Weakness 2025

Commonwealth of Massachusetts

MA

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

2025-028 Epidemiology and Laboratory Capacity for Infectious Diseases 93.323 Recommendation: We recommend the Department complete implementation of its corrective action plan from the prior audit. We recommend that the Department review and enhance its internal controls to ensure financial reports a...

2025-028 Epidemiology and Laboratory Capacity for Infectious Diseases 93.323 Recommendation: We recommend the Department complete implementation of its corrective action plan from the prior audit. We recommend that the Department review and enhance its internal controls to ensure financial reports are reviewed and approved prior to submission. Action taken in response to finding: Fiscal reporting will consist of email communication from the Director of Administration and Finance to the Deputy Director of Administration and Finance or other designee requesting the Deputy Director of Administration and Finance or other designee to review both the quarterly report in the ELC’s CAMP portal and the spreadsheet backup attached to the email communication that supports the financial data in ELC’s CAMP portal. The Deputy Director of Administration and Finance or other designee will review the spreadsheet and financial data in ELC CAMP. If the Deputy Director of Administration and Finance or other designee, approves, he/she will email the Director of Administration and Finance stating that he/she has reviewed and approved the data in the spreadsheet and in the ELC CAMP portal. If Deputy Director of Administration and Finance or other designee does not approve, he/she will communicate this through email to the Director of Administration and Finance with what the issues are and ask the Director of Administration and Finance to correct and resubmit the information to Deputy Director of Administration and Finance. For the purposes of the fiscal reporting section of the finding : We started implementing this process with the 4th quarterly reporting covering May 2025-July 2025 for the budget period August 1, 2024-July 2025. We have continued this process for the next reporting cycle for the 1st and 2nd quarter of the new budget period August 1, 2025-July 2026. The 1st quarter covered August 1, 2025-October 31,2025, reporting due to CDC November 2025. The 2nd quarter covered November 1, 2025-Januaray 31, 2026, reporting due to CDC February 2026 The program reporting follows : Programmatic performance reporting is completed in ELC CAMP under the direction of each section’s programmatic lead(s) and the oversight of the Project Director (PD). Once completed, the multiple programmatic leads will email the PD to confirm the programmatic data are entered, have been reviewed, and the data are submitted. The Project Director will review the programmatic data in the ELC CAMP portal. If the Project Director finds errors, she will email the programmatic lead(s) identifying the error and ask the programmatic lead(s) to correct. The same process noted above would continue until the Project Director approves the programmatic performance report Name(s) of the contact person(s) responsible for corrective action: Cheryl Bernard-Dort, Director of Administration and Finance, BIDLS and Nadia ElKamouss, Deputy Director of Administration and Finance, BIDLS; Natalie Morgenstern, Director, Division of Epidemiology, BIDLS Planned completion date for corrective action plan: August 31, 2026

View Audit 400886

Finding 1214102 (2025-013)

Material Weakness 2025

Commonwealth of Massachusetts

MA

Special Tests & Provisions Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

2025-013 Unemployment Insurance - Assistance Listing No. 17.225 Recommendation: The Department should perform staff training and strengthen its procedures and controls to ensure overpayments are identified, recorded, and recovered in a timely manner and in full compliance with federal requirements. ...

2025-013 Unemployment Insurance - Assistance Listing No. 17.225 Recommendation: The Department should perform staff training and strengthen its procedures and controls to ensure overpayments are identified, recorded, and recovered in a timely manner and in full compliance with federal requirements. Action taken in response to finding: In response to this finding, we have worked with our developers of the EMT system to investigate some of the issues which arose. This review determined that some of the erroneous data was the result of conversion issues when converting UI Online data (the prior unemployment system of record) to the current system, EMT. Developers are working to identify any areas that may require technical fixes. However, as of May of 2026, all new claims filed for unemployment benefits will be made in the EMT system, therefore the reliance on utilizing converted data will lessen as time goes on. In response to discrepancies that arose due to staff errors, all adjudication staff will receive training on fault/fraud issues which will cover the penalties against the claimant associated with each finding. Additionally, the Department is updating its Adjudication Handbook. This handbook provides detailed instruction on all adjudication matters and the applicable legal citations for decision rendered. This handbook will be reviewed by all staff who adjudicate cases. Name(s) of the contact person(s) responsible for corrective action: Josh Nussey, Acting Director of Program Integrity Planned completion date for corrective action plan: 12/31/2026

View Audit 400886

Finding 1214100 (2025-012)

Material Weakness 2025

Commonwealth of Massachusetts

MA

Special Tests & Provisions Eligibility Reporting § 200.303

2025-012 Unemployment Insurance - Assistance Listing No. 17.225 Recommendation: We recommend the Department complete implementation of its corrective action plan from the prior year. We recommend the Department review and enhance procedures and controls to ensure that RESEA program requirements are ...

2025-012 Unemployment Insurance - Assistance Listing No. 17.225 Recommendation: We recommend the Department complete implementation of its corrective action plan from the prior year. We recommend the Department review and enhance procedures and controls to ensure that RESEA program requirements are met. We further recommend the Department develop a formal process to review quarterly performance reports for accuracy prior to submission. Action taken in response to finding: In order to resolve this finding, the Department is in the process of creating a new policy and procedure to ensure reports are reviewed prior to submission via the federal reporting system. The policy and procedures will state the process involved in getting report information, review of information, notification to manager, and submittal through the federal reporting system. MDUA has completed a review of policies and procedures. This will be a new effort at formalizing a policy which will go through agency review prior to enactment. MDUA has established an informal policy for staff to follow which speaks to the intent of having a formalized policy. The new policy and procedure will detail the responsibilities of staff who are involved with retrieving the initial information for the report from our UI administrative system, review of information to ensure federal reporting system requirements and comparison to past reports, notification to direct manager that the review was completed, and submittal through the federal reporting system. Name(s) of the contact person(s) responsible for corrective action: John Saulnier, Director of Benefit Performance Planned completion date for corrective action plan: May 1st, 2026

View Audit 400886

Finding 1214098 (2025-011)

Material Weakness 2025

Commonwealth of Massachusetts

MA

Special Tests & Provisions Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

2025-011 Unemployment Insurance - Assistance Listing No. 17.225 Recommendation: We recommend the Department complete implementation of its corrective action plan from the prior year. We recommend the Department review and enhance procedures and controls to ensure that BAM case investigations are com...

2025-011 Unemployment Insurance - Assistance Listing No. 17.225 Recommendation: We recommend the Department complete implementation of its corrective action plan from the prior year. We recommend the Department review and enhance procedures and controls to ensure that BAM case investigations are completed timely in accordance with the time limits established in the ET Handbook No. 395. Action taken in response to finding: BAM staff have begun utilizing a new case management system within the modernized EMT system. This has reduced the number of screen shots necessary to develop a case. BAM investigators will continue receiving training on system usage and how to optimize day to day operations through weekly training sessions and the ability to schedule one on one training sessions with the BAM supervisor each week. BAM management continues to work with the EMT project to submit tickets for BAM program remediation while it continues to wait on required programming from pre-go live. Two BAM Investigators are training while waiting for the additional hiring to be approved. An improvement in the system is that BAM management is now in control of the number of cases being sampled. This will allow modification of the weekly sampling to allow change when needed such as an increase in case sampling if a case had to be discarded. Name(s) of the contact person(s) responsible for corrective action: Susan Saulnier Director of UI Performs Planned completion date for corrective action plan: 10/31/2026

View Audit 400886

Finding 1214096 (2025-010)

Material Weakness 2025

Commonwealth of Massachusetts

MA

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

2025-010 Unemployment Insurance - Assistance Listing No. 17.225 Recommendation: The Department should review its procedures to ensure that ETA 9130 reports are accurate and agree with supporting documentation. We further recommend that internal controls are enhanced to ensure that reports are review...

2025-010 Unemployment Insurance - Assistance Listing No. 17.225 Recommendation: The Department should review its procedures to ensure that ETA 9130 reports are accurate and agree with supporting documentation. We further recommend that internal controls are enhanced to ensure that reports are reviewed for accuracy prior to submission. Action taken in response to finding: ETA 9130 reports are jointly reviewed by Finance and program staff before submission and certification. Supporting documentations are cross-checked for accuracy and completeness, and all relevant files are maintained in a centralized, shared folder to ensure transparency and accountability. This multi-layered review and documentation process has been incorporated into a standard quarterly reporting procedures to prevent future discrepancies and ensure federal reporting integrity. New internal controls and procedures were established 8/30/2025, in which this audit has not reviewed yet. Name(s) of the contact person(s) responsible for corrective action: Finance: Sarah Shannon, Ken Luke, Vina Yung, DUA: Mark Costello Planned completion date for corrective action plan: Already completed – staff trained and provided with new SOP on 8/30/2025.

View Audit 400886

Finding 1214094 (2025-009)

Material Weakness 2025

Commonwealth of Massachusetts

MA

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

2025-009 Unemployment Insurance - Assistance Listing No. 17.225 Recommendation: The Department should review and update its reporting procedures and controls to ensure that ETA 9052 - Nonmonetary Determination Time Lapse Detection reports are submitted timely and that copies of report submissions ar...

2025-009 Unemployment Insurance - Assistance Listing No. 17.225 Recommendation: The Department should review and update its reporting procedures and controls to ensure that ETA 9052 - Nonmonetary Determination Time Lapse Detection reports are submitted timely and that copies of report submissions are maintained and are readily available for audit. Reports should be reviewed for accuracy prior to submission. Action taken in response to finding: A staff member has been identified as the owner of UIR 9052. Staff have been trained in the submission of 9052 in both SUN and the new UIRS system that has replaced the SUN. Master list of report owners has been updated to reflect accurate ownership. Master List Report owner will notify 9052 owner in advance that report is coming due. The department will make sure that reports are reviewed for accuracy prior to submission and copies of report submissions are maintained. Name(s) of the contact person(s) responsible for corrective action: John Saulnier / Director of Benefits Planned completion date for corrective action plan: Corrected. The 9052 is now being submitted timely.

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Finding 1214092 (2025-008)

Material Weakness 2025

Commonwealth of Massachusetts

MA

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

2025-008 Unemployment Insurance - Assistance Listing No. 17.225 Recommendation: The Department should review and update its reporting procedures and controls to ensure that ETA 2208A reports are accurate and agree with supporting documentation. We further recommend that internal controls are enhance...

2025-008 Unemployment Insurance - Assistance Listing No. 17.225 Recommendation: The Department should review and update its reporting procedures and controls to ensure that ETA 2208A reports are accurate and agree with supporting documentation. We further recommend that internal controls are enhanced to ensure that reports are reviewed for accuracy prior to submission. Action taken in response to finding: Finance has implemented a formal review and reconciliation process requiring reported totals to be verified against supporting source documentation before submission, standardized and locked required workbook formulas, and establish a pre-submission checklist to document review. Written procedures will be updated to formalize these control enhancements and ensure continued compliance. Name(s) of the contact person(s) responsible for corrective action: Finance: Vina Yung, Anna Yong Planned completion date for corrective action plan: 6/30/2026

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Finding 1214088 (2025-006)

Material Weakness 2025

Commonwealth of Massachusetts

MA

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

2025-006 Employment Service Cluster - Assistance Listing No. 17.207, 17.801 Recommendation: The Department should review its procedures to ensure that ETA 9130 reports are accurate and agree with supporting documentation. We further recommend that internal controls are enhanced to ensure that report...

2025-006 Employment Service Cluster - Assistance Listing No. 17.207, 17.801 Recommendation: The Department should review its procedures to ensure that ETA 9130 reports are accurate and agree with supporting documentation. We further recommend that internal controls are enhanced to ensure that reports are reviewed for accuracy prior to submission. Action taken in response to finding: ETA 9130 reports are jointly reviewed by Finance and program staff before submission and certification. Supporting documentations are cross-checked for accuracy and completeness, and all relevant files are maintained in a centralized, shared folder to ensure transparency and accountability. This multi-layered review and documentation process has been incorporated into a standard quarterly reporting procedures to prevent future discrepancies and ensure federal reporting integrity. New internal controls and procedures were established 8/30/2025, in which this audit has not reviewed yet. Name(s) of the contact person(s) responsible for corrective action: Finance: Sarah Shannon, Ken Luke, Vina Yung, DCS: Dave Manning Planned completion date for corrective action plan: Already completed – staff trained and provided with new SOP on 8/30/2025.

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Finding 1214059 (2025-017)

Material Weakness 2025

State of Georgia/state Accounting Office-Ein Noted

GA

Special Tests & Provisions Subrecipient Monitoring Significant Deficiency

DCH is enhancing its application risk management and system security review practices through the following corrective actions: • Enterprise Risk Management Framework: DCH operates under a HITRUST i1-validated information security program and is pursuing HITRUST r2 validation in Fall 2026. This fram...

DCH is enhancing its application risk management and system security review practices through the following corrective actions: • Enterprise Risk Management Framework: DCH operates under a HITRUST i1-validated information security program and is pursuing HITRUST r2 validation in Fall 2026. This framework provides standardized, risk-based controls for identifying, assessing, and managing security risks across Medicaid and CHIP systems and supporting services. • ServiceNow IRM, SecOps, and TPRM Implementation: DCH is implementing ServiceNow modules for Integrated Risk Management (IRM), Security Operations (SecOps), and Third-Party Risk Management (TPRM) to centralize risk identification, SOC report intake, CUEC tracking, issue management, and remediation evidence. These capabilities will support consistent documentation, traceability, and auditability of risk management and third-party oversight activities. • System Security Reviews (SSRs) and SOC Report Validation: DCH will formalize and document its System Security Review (SSR) process for in-scope systems and third-party service providers. This includes: o Establishing documented procedures for annual review of SOC Type II reports and applicable CUECs. o Performing and retaining evidence of management review to assess control design and operating effectiveness. o Tracking SSR results, deficiencies, and remediation activities through ServiceNow IRM/TPRM. Ensuring SSRs are performed consistently and retained as auditable artifacts. These corrective actions are designed to provide reasonable assurance that application-level and third-party risks are identified, reviewed, documented, and managed in compliance with state and federal requirements.

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Finding 1214058 (2025-021)

Material Weakness 2025

State of Georgia/state Accounting Office-Ein Noted

GA

Subrecipient Monitoring Allowable Costs / Cost Principles Eligibility § 200.303

DHS will review existing Medical Assistance and income calculation policies, make any necessary changes, and provide refresher training for staff at all levels of eligibility for various types of Medical Assistance. In addition, reminders about the Medical Assistance Policy will be included in month...

DHS will review existing Medical Assistance and income calculation policies, make any necessary changes, and provide refresher training for staff at all levels of eligibility for various types of Medical Assistance. In addition, reminders about the Medical Assistance Policy will be included in monthly unit meetings. DHS will complete targeted Medical Assistance case reviews, and a review of system (Gateway) designs will be conducted to identify any necessary changes, updates, and additional improvements.

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Finding 1214057 (2025-018)

Material Weakness 2025

State of Georgia/state Accounting Office-Ein Noted

GA

Allowable Costs / Cost Principles Eligibility Internal Control / Segregation of Duties § 200.303

Currently, DCH continues to meet with DHS/DFCS to ensure synchronization of the Georgia Gateway and GAMMIS systems. DCH is proposing additional procedures and policies for DHS/DFCS caseworkers to implement that will terminate members who have been determined ineligible in Gateway but remain active i...

Currently, DCH continues to meet with DHS/DFCS to ensure synchronization of the Georgia Gateway and GAMMIS systems. DCH is proposing additional procedures and policies for DHS/DFCS caseworkers to implement that will terminate members who have been determined ineligible in Gateway but remain active in GAMMIS.

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Finding 1214051 (2025-019)

Material Weakness 2025

State of Georgia/state Accounting Office-Ein Noted

GA

Subrecipient Monitoring Allowable Costs / Cost Principles Eligibility § 200.303

DHS Division of Family and Children Services (DFCS), Temporary Assistance for Needy Families (TANF) program, will review existing TANF and expense statement review policies, and provide refresher training on these policies and applicable forms for staff at all levels of eligibility. TANF management ...

DHS Division of Family and Children Services (DFCS), Temporary Assistance for Needy Families (TANF) program, will review existing TANF and expense statement review policies, and provide refresher training on these policies and applicable forms for staff at all levels of eligibility. TANF management will complete targeted case reviews to ensure that all applicable documentation is included in the file, and peer reviews will be initiated. In addition, a review of the Gateway System will be conducted, and any required form(s) will be updated and included in the case file, if required.

View Audit 400877

Corrective Action Plans

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