Corrective Action Plans

Finding 530339 (2024-007)

Significant Deficiency 2024

State of Texas C/o Comptroller of Public Accounts

TX

Questioned Costs Allowable Costs / Cost Principles Period of Performance § 200.303 § 200.308 § 200.403

Corrective action plan: Social Services Block Grant (SSBG) Actions Taken: HHSC Fund Management worked with Chief Financial Officer (CFO) Operations Support to develop a query to identify journal transactions that post in the CAPPS Financials General Ledger module prior to the start date of the p...

Corrective action plan: Social Services Block Grant (SSBG) Actions Taken: HHSC Fund Management worked with Chief Financial Officer (CFO) Operations Support to develop a query to identify journal transactions that post in the CAPPS Financials General Ledger module prior to the start date of the project. This query has been run monthly since May 2024, and it was fully implemented as of August 31, 2024. Planned: Additional training on the review process for Accounting and Budget staff, and revisions to the process to emphasize meeting deadlines while new federal grants and old federal grant close out transactions occur. An expenditure transfer voucher (ETV) to correct reconciliation issue will be completed by CFO Budget staff. Block Grants for Community Mental Health Services (MHBG) Actions Taken: HHSC Fund Management will run the monthly query and take corrective action on any resulting journals prior to the close of the fiscal year. In addition, HHSC Fund Management/Cash Management does not draw federal funds past the liquidation date. These dates are denoted in their draw ledgers. Cash Management also sends a semi_x0002_monthly email during the fiscal year and a weekly email from mid-June through the end of July to HHSC Budget identifying transactions by fund source that should be cleared from the draw down report prior to the close of the fiscal year. HHSC Cash Management will continue to send the draw down clean up report and start the weekly emails the first week of June. HHSC Budget will complete any ETVs resulting from the draw down clean up report to HHSC Fund Management General Ledger for processing by July 15 to ensure the draw down accurately reflects federal expenditures for the SEFA population. Planned: Budget Management will revise the coordination process with Behavioral Health Services program financial staff administering MHBG to prioritize addressing encumbered balances on expiring block grant years at the beginning of the liquidation period and set deadlines for Program input on required financial adjustments to ensure sufficient time for processing. ETV to correct reconciliation issue will be completed. Implementation dates: February 28, 2025 Responsible persons: SSBG: Heather Nevill, Fund Management Director, Fund Accounting Raymond Jasik, Budget Director, CFO Budget Heather Anderson, Budget Manager, CFO Budget MHBG: Marcie Ochoa-Gamez, Budget Manager, Budget Management

View Audit 348386 Questioned Costs: $1

Finding 530313 (2024-004)

Significant Deficiency 2024

State of Texas C/o Comptroller of Public Accounts

TX

Reporting Subrecipient Monitoring Significant Deficiency § 200.302 § 200.303 § 200.328 § 200.329

Corrective action plan: Federal Reporting will seek direction from the awarding agency if corrections are found to be needed after a report is submitted. If directed to, Federal Reporting will submit a revised report. If directed to wait until the next cumulative report to make the correction, Fed...

Corrective action plan: Federal Reporting will seek direction from the awarding agency if corrections are found to be needed after a report is submitted. If directed to, Federal Reporting will submit a revised report. If directed to wait until the next cumulative report to make the correction, Federal Reporting will save this documentation from the awarding agency. Implementation dates: February 12, 2025 (Implemented) Responsible persons: Alan Flynn, Manager, Federal Reporting

View Audit 348386

Finding 530305 (2024-002)

Significant Deficiency 2024

State of Texas C/o Comptroller of Public Accounts

TX

Cash Management Reporting Procurement, Suspension & Debarment § 200.303

Corrective action plan: To strengthen SEFA preparation and review, DSHS has designated the recently hired DSHS Financial Reporting Unit Manager and Accounting Section Director to oversee the following corrective action plan actions:  Formal updates to procedures to better implement policy;  Co...

Corrective action plan: To strengthen SEFA preparation and review, DSHS has designated the recently hired DSHS Financial Reporting Unit Manager and Accounting Section Director to oversee the following corrective action plan actions:  Formal updates to procedures to better implement policy;  Completion of hiring key financial reporting positions;  A refresher training for staff and contractors involved in SEFA preparation and review; and  Development of an internal quality review process for implementation during the next SEFA. Implementation dates: November 30, 2025 Responsible persons: Paige Lovejoy, DSHS Financial Reporting Unit Manager

View Audit 348386

Finding 530273 (2024-001)

Significant Deficiency 2024

City of Carthage, Missouri

MO

Reporting Significant Deficiency

Corrective Action Plan February 11, 2025 U.S. Department of the Treasury City of Carthage, Missouri respectfully submits the following corrective action plan for the year ended June 30, 2024. Contact information for the individual responsible for the corrective action: Ms. Traci Cox, Interim City Ad...

Corrective Action Plan February 11, 2025 U.S. Department of the Treasury City of Carthage, Missouri respectfully submits the following corrective action plan for the year ended June 30, 2024. Contact information for the individual responsible for the corrective action: Ms. Traci Cox, Interim City Administrator City of Carthage, Missouri 326 Grant St. Carthage, MO 64836 (417) 237-7000 Independent Public Accounting Firm: KPM CPAs, PC, 1445 E. Republic Road, Springfield, MO 65804 Audit Period: Year ended June 30, 2024 The findings from the June 30, 2024, Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Findings - Federal Award Program Audit Compliance and Significant Deficiency 2024-001 Reporting Recommendation: We recommend management implement policies and procedures to ensure required reports are completed accurately as required by the grant agreement and Uniform Guidance. Corrective Action Taken: We will report all expenditures and obligations through the Treasury's Reporting Portal for the report due April 30, 2025, to ensure compliance with reporting requirements. Anticipated Completion Date: April 2025

View Audit 348357

Finding 530272 (2024-003)

Significant Deficiency 2024

Homeward Bound of Western North Carolina, Inc.

NC

Cash Management Eligibility Significant Deficiency

Name of Contact Person: Sara Graul Corrective Action: Case File Oversight: • The Program Director has always reviewed case files but previously failed to sign the checklists. This has now been corrected and checklists are being signed upon review. • This process will continue to ensure proper docu...

Name of Contact Person: Sara Graul Corrective Action: Case File Oversight: • The Program Director has always reviewed case files but previously failed to sign the checklists. This has now been corrected and checklists are being signed upon review. • This process will continue to ensure proper documentation and compliance. • The Department structure is currently being reviewed with additional staff likely to add capacity and oversight. Financial Review & Approval Process: • The Finance team will continue preparing projection worksheets reconciled to the general ledger. • The Program Director will formally review and approve these financial documents before reimbursement requests are submitted. • We resolved this deficiency in April 2024 and have put the following additional controls in place to prevent this deficiency from recurring. Training & Standardization: • All program staff, including case managers and finance personnel, will receive training on compliance and proper documentation. • A standardized process and accountability measures will be in place to maintain adherence to these corrective actions. Monitoring & Reporting: • Quarterly internal audits will be conducted to verify compliance with the updated review and approval process. • An internal compliance officer or manager will oversee adherence to the new protocols. Completion Date: Full compliance with these measures is expected by the end of the next reporting quarter.

View Audit 348356

Finding 530255 (2024-005)

Significant Deficiency 2024

Wyandanch Union Free School District

NY

Special Tests & Provisions Subrecipient Monitoring Significant Deficiency

U.S. Department of Education - Passed-through the NYS Education Department - Education Stabilization Fund COVID-19 - Elementary and Secondary School Emergency Relief (ESSER) Fund; ALN 84.425D; Project #5891-21-2955; Grant Period -Fiscal Year Ended June 30, 2024 COVID-19 - American Rescue Plan - Ele...

U.S. Department of Education - Passed-through the NYS Education Department - Education Stabilization Fund COVID-19 - Elementary and Secondary School Emergency Relief (ESSER) Fund; ALN 84.425D; Project #5891-21-2955; Grant Period -Fiscal Year Ended June 30, 2024 COVID-19 - American Rescue Plan - Elementary and Secondary School Emergency Relief (ARP ESSER) Fund; ALN 84.425U; Project 5880-21-2955, 5884-21-2955, 5883-21-2955, 5882-21- 2955; Grant Period -Fiscal Year Ended June 30, 2024 COVID-19 -American Rescue Plan -Elementary and Secondary School Emergency Relief - Homeless Children and Youth; ALN 84.425W; Project#5218-21-2955; Grant Period - Fiscal Year Ended June 30, 2024 Significant Deficiency Compliance Requirement: Special Tests -Wage Rate Requirements Criteria: Recipients (States or SEAs) and subrecipients (including LEAs) utilizing Education Stabilization Funds for minor remodeling, renovation, or construction contracts exceeding $2,000 and involving laborers or mechanics must comply with Davis-Bacon prevailing wage requirements. Condition: A sample of ten (10) minor remodeling, renovation, or construction contracts exceeding $2,000 was selected to assess compliance with prevailing wage rate clauses. The District was unable to provide complete contract documentation, including required prevailing wage provisions, for any of the selected contracts. Cause: The District's inability to provide the necessary supporting contracts was due to a lack of familiarity with, and misinterpretation of, the prevailing wage rate requirements. Effect: Failure to maintain documentation of Wage rate compliance results in noncompliance with federal grant requirements. Questioned Costs: None. Recommendation: We recommend that the District implement procedures to ensure that all federally funded construction contracts exceeding $2,000 explicitly include the required prevailing wage disclosures. Districts Response: The District agrees with this finding. The District will ensure that all current and future projects completed have full documentation including prevailing wage rate requirements.

View Audit 348332

Finding 530244 (2024-004)

Significant Deficiency 2024

Wyandanch Union Free School District

NY

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Reporting § 200.430

U.S. Department of Education -Passed-through the NYS Education Department Title I Grants to Local Educational Agencies (LEAs); Assistance Listing Number (ALN) 84.010; Project # 's 0021-23-2955, 0011-23-6011, 0011-23-7200, 0011-24-2160, 0021-24-2955, Grant Period Fiscal Year Ended June 30, 2024 U....

U.S. Department of Education -Passed-through the NYS Education Department Title I Grants to Local Educational Agencies (LEAs); Assistance Listing Number (ALN) 84.010; Project # 's 0021-23-2955, 0011-23-6011, 0011-23-7200, 0011-24-2160, 0021-24-2955, Grant Period Fiscal Year Ended June 30, 2024 U.S. Department of Education -Passed-through the NYS Education Department - Education Stabilization Fund COVID-19 - Elementary and Secondary School Emergency Relief (ESSER) Fund; ALN 84.425D; Project #5891-21-2955; Grant Period - Fiscal Year Ended June 30, 2024 COVID-19 - American Rescue Plan - Elementary and Secondary School Emergency Relief (ARP ESSER) Fund; ALN 84.425U; Project 5880-21-2955, 5884-21-2955, 5883-21-2955, 5882-21- 2955; Grant Period -Fiscal Year Ended June 30, 2024 COVID-19 -American Rescue Plan -Elementary and Secondary School Emergency Relief - Homeless Children and Youth; ALN 84.425W; Project#5218-21-2955; Grant Period - Fiscal Year Ended June 30, 2024 Significant Deficiency Compliance Req uirement: Allowable Activities and Cost Principles Criteria: Per Uniform Guidance (2 CFR §200.430), payroll costs charged to federal grants must be supported by appropriate documentation reflecting actual time and effort spent on grant-related activities. Per District policy employees are required to submit Personnel Activity Reports (PARs) to certify time worked on a federal grant. PARs are then required to be reviewed and approved by a direct supervisor. Condition: We identified seventeen (17) instances of missing or incomplete PAR forms for Title I. Six (6) out of (17) employees did not complete a PAR form. Eleven (11) out of (17) did not document supervisor review and approval. For the education stabilization fund the District was unable to provide support for time and effort worked on the grant for eleven (11) employees. Cause: Due to significant changes in personnel and work environments of key employees, the District was unable to maintain adequate oversight over the payroll function. Effect: The District is not in compliance with federal grant requirements and District policy. Questioned Costs: None Recommendation: We recommend the District enhance internal control measures to verify the accuracy and completeness of PARs in a timely manner. We also recommend the District conduct independent reviews of the payroll process and time and effort reporting to verify established controls are functioning as intended. District's Response: The District agrees with this finding. The procedures that are typically followed were not in place during the 2024 school year due to staff changes but the District is back on track and following the correct protocol for the current year and going forward

View Audit 348332

Finding 530239 (2024-003)

Significant Deficiency 2024

Wyandanch Union Free School District

NY

Special Tests & Provisions Reporting Significant Deficiency

FINDING # 2024-003 (REPEAT FINDING OF #2023-004, 2022-001, #2021-002, #2020-003, and #2019-004) U.S. Department of Education -Passed-through the NYS Education Department Title I Grants to Local Educational Agencies (LEAs); Assistance Listing Number (ALN) 84.010; Project # 's 0021-23-2955, 0011-23-6...

FINDING # 2024-003 (REPEAT FINDING OF #2023-004, 2022-001, #2021-002, #2020-003, and #2019-004) U.S. Department of Education -Passed-through the NYS Education Department Title I Grants to Local Educational Agencies (LEAs); Assistance Listing Number (ALN) 84.010; Project # 's 0021-23-2955, 0011-23-6011, 0011-23-7200, 0011-24-2160, 0021-24-2955, Grant Period Fiscal Year Ended June 30, 2024 Significant Deficiency Compliance Requirement: Special Tests and Provisions - High School Graduation Rate Criteria: According to the OMB Compliance Supplement, the District is required to report graduation rate data using the four-year adjusted cohort rate, or one or more extended-year adjusted cohort rates. To remove a student from the cohort, the District is required to confirm, in writing, that the student transferred out, emigrated to another country, transferred to a prison or juvenile facility, or is deceased. To confirm that a student transferred out, the school or local education agency must retain documentation in writing that the student enrolled in another school or in an educational program that culminates in the award of a regular high school diploma. Condition: The District was unable to provide written documentation to support the removal of students from the regulatory adjusted cohort for seven (7) students selected for testing. Cause: The District did not retain written documentation to support the removal of students from the regulatory adjusted cohort when reporting graduation rate data. Effect: The District is not in compliance with the special tests and provisions - high school graduation rate compliance requirement. Questioned Costs: None. Recommendation: We recommend the District develop a system to maintain the appropriate documentation to support the removal of a student from the regulatory adjusted cohort when reporting graduation rate data. District's Response: The District agrees with the finding. The District's Registration and Attendance department is working under the guidance of the Superintendent of Schools to correct this issue and ensure complete and accurate records moving forward.

View Audit 348332

Finding 530238 (2024-008)

Significant Deficiency 2024

Bloomfield School District

IN

Internal Control / Segregation of Duties Special Tests & Provisions Reporting § 200.303

FINDING 2024-008 - Education Stabilization Fund (ESSER) – Special Tests and Provisions - Wage Rate Requirements Context: For the one project subject to Davis-Bacon requirements, the School Corporation did not obtain the weekly payroll reports certifications from the company that performed renovati...

FINDING 2024-008 - Education Stabilization Fund (ESSER) – Special Tests and Provisions - Wage Rate Requirements Context: For the one project subject to Davis-Bacon requirements, the School Corporation did not obtain the weekly payroll reports certifications from the company that performed renovations on the School Corporation. Therefore, no review was performed to ensure that pay rates complied with the federal wage rate requirements. Additionally, the School Corporation did not have a contract with the company that included the clauses for the federal wage rate requirements. The amount disbursed and reported on the SEFA during the audit period is $64,720. Contact Person Responsible for Corrective Action: Michelle L. Keene Contact Phone Number: (812) 384-4386 Views of Responsible Official: We concur with the finding. Description of Corrective Action Plan: We will ensure any future federal construction projects comply with the Davis-Bacon requirements. Anticipated Completion Date: Next federally funded construction project.

View Audit 348324

Finding 530221 (2024-006)

Significant Deficiency 2024

City of Framingham

MA

Reporting Significant Deficiency Internal Control / Segregation of Duties

2024-006 Coronavirus State and Local Fiscal Recovery Funds - Assistance Listing Number 21.027 Recommendation: We recommend procedures to file all required reports be strengthened. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in resp...

2024-006 Coronavirus State and Local Fiscal Recovery Funds - Assistance Listing Number 21.027 Recommendation: We recommend procedures to file all required reports be strengthened. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The City of Framingham acknowledges the finding and is committed to strengthening procedures for filing all required reports under the Coronavirus State and Local Fiscal Recovery Funds program. The City will implement additional internal controls, including enhanced tracking mechanisms and periodic internal audits, to ensure the timely and accurate submission of reports. Staff responsible for grant reporting will also undergo additional training on federal reporting requirements to improve compliance and reduce the risk of future findings. Name(s) of the contact person(s) responsible for corrective action: Jennifer Pratt Planned completion date for corrective action plan: 3/31/2025

View Audit 348312

Finding 530217 (2024-005)

Significant Deficiency 2024

City of Framingham

MA

Procurement, Suspension & Debarment School Nutrition Programs Significant Deficiency

2024-005 Child Nutrition Cluster - Assistance Listing Numbers 10.553, 10.555 and 10.559 Recommendation: We recommend procedures to obtain and file all fully signed and executed contracts be strengthened. Explanation of disagreement with audit finding: There is no disagreement with the audit findin...

2024-005 Child Nutrition Cluster - Assistance Listing Numbers 10.553, 10.555 and 10.559 Recommendation: We recommend procedures to obtain and file all fully signed and executed contracts be strengthened. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Framingham Public School Finance Office will continue to follow the City of Framingham Procurement process for requesting review of all federal expenditures over $10K and do a follow up with the Procuremnt Office to ensure that a contract has been issued to the vendor. Name(s) of the contact person(s) responsible for corrective action: Jennifer Pratt, Margaret Ottaviani, Kate Fiore and Lincoln Lynch, IV Planned completion date for corrective action plan: Effective as of 07/01/2024

View Audit 348312

Finding 530198 (2024-001)

Significant Deficiency 2024

Catholic Charities Hawaii

HI

Reporting Allowable Costs / Cost Principles Significant Deficiency

Beginning with the audited consolidated financial statements of Catholic Charities Hawaii for the year ended June 30, 2024, the Controller will ensure that each contract awarded and received is thoroughly analyzed prior to assigning a fund source. This control will properly identify federal funds th...

Beginning with the audited consolidated financial statements of Catholic Charities Hawaii for the year ended June 30, 2024, the Controller will ensure that each contract awarded and received is thoroughly analyzed prior to assigning a fund source. This control will properly identify federal funds that are to be reported on the SEFA.

View Audit 348304

Finding 530180 (2024-031)

Significant Deficiency 2024

State of Arkansas

AR

Questioned Costs Eligibility Special Tests & Provisions

Views of Responsible Officials and Planned Corrective Action: DMS concurs with this finding. For Sample Item 15, DMS has implemented an automated process to notify providers of pending revalidations and to terminate them when revalidation is not completed within five years. For Sample Item 21, DMS ...

Views of Responsible Officials and Planned Corrective Action: DMS concurs with this finding. For Sample Item 15, DMS has implemented an automated process to notify providers of pending revalidations and to terminate them when revalidation is not completed within five years. For Sample Item 21, DMS has implemented automated processes utilizing data transfers from licensing boards that will now terminate providers when their license lapses. In addition, DMS is developing a mechanism to obtain information provided on W-9’s by utilizing an electronic process through the provider portal during enrollment. This provider was terminated on 10/2/23. For Sample Item 40, DMS has coordinated with Division of Provider Services and Quality Assurance (DPSQA) to interface with their certification tracking system and to provide additional notifications to providers when their certification period is nearing expiration. Notifications are being sent 30 days prior to the lapse of certification. DMS confirmed with DPSQA that there were no adverse events that lead to the termination of the provider’s certification. Anticipated Completion Date: June 30, 2025 Contact Person: Elizabeth Pitman Director, Division of Medical Services Department of Human Services 700 Main Street Little Rock, AR 72201 (501) 244-3944 Elizabeth.Pitman@dhs.arkansas.gov

View Audit 348267 Questioned Costs: $1

Finding 530179 (2024-030)

Significant Deficiency 2024

State of Arkansas

AR

Questioned Costs Special Tests & Provisions Subrecipient Monitoring

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. All MFCU overpayment collections are received by DHS through an agency bank account dedicated to refunded overpayments. All transactions in that account are compiled into a monthly receivables report that is...

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. All MFCU overpayment collections are received by DHS through an agency bank account dedicated to refunded overpayments. All transactions in that account are compiled into a monthly receivables report that is used for quarterly reporting overpayments to CMS. The overpayment that was not included in the report was wired to the Arkansas State Treasury and the funds were moved to an AASIS fund. Because the funds were not received through the dedicated refund account, the overpayment was missed in the monthly report. For all future collections completed through electronic transfer of funds, the person or entity making the refund will be provided with ACH/EFT information for dedicated refund account. Anticipated Completion Date: Complete Contact Person: Elizabeth Pitman Director, Division of Medical Services Department of Human Services 700 Main Street Little Rock, AR 72201 (501) 244-3944 Elizabeth.Pitman@dhs.arkansas.gov

View Audit 348267 Questioned Costs: $1

Finding 530177 (2024-028)

Significant Deficiency 2024

State of Arkansas

AR

Questioned Costs Subrecipient Monitoring Eligibility

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. The first two deficiencies occurred prior to implementation of the agency’s current integrated eligibility system (ARIES). The date of death for the beneficiary did not cross over from the prior eligibility ...

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. The first two deficiencies occurred prior to implementation of the agency’s current integrated eligibility system (ARIES). The date of death for the beneficiary did not cross over from the prior eligibility system to MMIS. The agency has implemented a process to monitor and address when eligibility updates do not cross over successfully from the ARIES system to MMIS. For the second case, the missing documentation was likely the result of a failure to scan or appropriately index the document in the prior eligibility system. The agency will continue its practice of reviewing a sample of eligibility cases for accuracy. For the third case, the coverage did not close properly at the end of the month due to a system defect. The correction for this defect was deployed in ARIES on 3/31/24. Anticipated Completion Date: Complete Contact Person: Mary Franklin Director, Division of County Operations Department of Human Services 700 Main Street Little Rock, AR 72201 (501) 681-8377 Mary.Franklin@dhs.arkansas.gov

View Audit 348267 Questioned Costs: $1

Finding 530171 (2024-023)

Significant Deficiency 2024

State of Arkansas

AR

Student Financial Aid Subrecipient Monitoring Allowable Costs / Cost Principles

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. Corrections have been made to the affected quarterly reports for SFY2024. New program codes for Placement and Residential Licensing expenditures were not included in prior reporting for Administrative Costs...

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. Corrections have been made to the affected quarterly reports for SFY2024. New program codes for Placement and Residential Licensing expenditures were not included in prior reporting for Administrative Costs. Documented procedures for quarterly financial reporting will be revised to include more specific instructions for reporting expenditures and additional levels of review prior to report submission. Additional training on completion of quarterly financial reporting is being developed for DCFS Finance and Managerial Accounting-Grants Management staff. Anticipated Completion Date: April 30, 2025 Contact Person: Tiffany Wright Director, Division of Children and Family Services Department of Human Services 700 Main Street Little Rock, AR 72201 (501) 396-6477 Tiffany.Wright@dhs.arkansas.gov

View Audit 348267

Finding 530170 (2024-022)

Significant Deficiency 2024

State of Arkansas

AR

Questioned Costs Subrecipient Monitoring Eligibility

Views of Responsible Officials and Planned Corrective Action: DHS concurs with the finding. The agency updated its documented controls in March 2024 to require confirmation that agreements are signed by all parties before processing adoption subsidy packets and that all adoption files contain comple...

Views of Responsible Officials and Planned Corrective Action: DHS concurs with the finding. The agency updated its documented controls in March 2024 to require confirmation that agreements are signed by all parties before processing adoption subsidy packets and that all adoption files contain complete documentation. All findings occurred prior to the agency updating its documented controls. Anticipated Completion Date: Complete Contact Person: Tiffany Wright Director, Division of Children and Family Services Department of Human Services 700 Main Street Little Rock, AR 72201 (501) 396-6477 Tiffany.wright@dhs.arkansas.gov

View Audit 348267 Questioned Costs: $1

Finding 530167 (2024-019)

Significant Deficiency 2024

State of Arkansas

AR

Subrecipient Monitoring Significant Deficiency

Views of Responsible Officials and Planned Corrective Action: Subrecipient audit reports are requested, annually, from each subrecipient and reviewed by Agency staff. However, in order to demonstrate that reviews have been conducted, internal control procedures to document the reviews will include ...

Views of Responsible Officials and Planned Corrective Action: Subrecipient audit reports are requested, annually, from each subrecipient and reviewed by Agency staff. However, in order to demonstrate that reviews have been conducted, internal control procedures to document the reviews will include the following actions: • Create a checklist of items to review in accordance with federal auditing requirements. • Develop a report that documents the subrecipient audit that was reviewed; the reviewer’s name; date of the review; any actions required or taken; if applicable, date by which subrecipient must submit a corrective action plan (CAP); CAP status updates; and if applicable, subrecipient financial statements. • Establish a schedule to review audit deficiencies with underperforming subrecipients. • All documentation will be to an internal shared drive following a naming convention established by the program. Anticipated Completion Date: June 15, 2025 Contact Person: Tim Scott Senior Operations Manager Arkansas Department of Energy and Environment 5301 Northshore Drive North Little Rock, AR 72118 (501) 682-2433 Tim.W.Scott@arkansas.gov

View Audit 348267

Finding 530165 (2024-017)

Significant Deficiency 2024

State of Arkansas

AR

Subrecipient Monitoring Matching / Level of Effort / Earmarking Reporting

Views of Responsible Officials and Planned Corrective Action: Program Year 2024 was an unusual year in that (1) key Agency staff members were on extended leave or resigned, (2) one of the program’s primary consultants took extended leave, and (3) the program experienced a major influx of stimulus fu...

Views of Responsible Officials and Planned Corrective Action: Program Year 2024 was an unusual year in that (1) key Agency staff members were on extended leave or resigned, (2) one of the program’s primary consultants took extended leave, and (3) the program experienced a major influx of stimulus funds through separate awards that required separate management, coordination, and reporting. These exceptional circumstances slowed Agency staff’s ability to follow-up with subrecipients that had not submitted timely and accurate reports; subrecipient reports are necessary to submitting accurate and fully responsive federal reports. To help minimize the likelihood of future late submissions, the following control procedures will be established and implemented: • Prepare and transmit a comprehensive schedule of reports and respective due dates to subrecipients at the beginning of each program year; this schedule will be included in the Program Operations Manual. • Feature reporting and associated compliance requirements as a regular topic during annual training activities • Create a shared electronic, internal Agency calendar with reminders for initial, intermediate, and final due dates for report information • If necessary, upload report information in stages to federal reporting database to ensure submission deadlines are met. • Assign responsibility to a staff member to oversee the data collection process, review collected data for accuracy and consistency and, if necessary, provide technical assistance to subrecipients that need help preparing accurate reporting. Anticipated Completion Date: June 15, 2025 Contact Person: Iris Pennington Home Utilities Assistance Manager Arkansas Department of Energy and Environment 5301 Northshore Drive North Little Rock, AR 72118 (501) 682-0842 Iris.Pennington@arkansas.gov

View Audit 348267

Finding 530163 (2024-015)

Significant Deficiency 2024

State of Arkansas

AR

Subrecipient Monitoring Reporting Significant Deficiency

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. The timeliness of quarterly financial reports was impacted by the transition of the TANF program to DHS. The federal awarding agency did not permit the agency to file current TANF award reports until prior y...

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. The timeliness of quarterly financial reports was impacted by the transition of the TANF program to DHS. The federal awarding agency did not permit the agency to file current TANF award reports until prior year’s reports were submitted. DHS has now submitted all reports that are currently due and has one full-time staff working the TANF award and associated reports. Anticipated Completion Date: Complete Contact Person: Renee Ikard Chief Financial Officer Department of Human Services 700 Main Street Little Rock, AR 72201 (501) 682-8985 Renee.Ikard@dhs.arkansas.gov

View Audit 348267

Finding 530162 (2024-014)

Significant Deficiency 2024

State of Arkansas

AR

Subrecipient Monitoring Reporting Significant Deficiency

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. As of 2/25/25, DHS has reported all subrecipients with payments at or above $30,000 for SFY24 and a documented procedure has been developed to address the reporting requirement. Anticipated Completion Date:...

Views of Responsible Officials and Planned Corrective Action: DHS concurs with this finding. As of 2/25/25, DHS has reported all subrecipients with payments at or above $30,000 for SFY24 and a documented procedure has been developed to address the reporting requirement. Anticipated Completion Date: Completed Contact Person: Renee Ikard Chief Financial Officer Department of Human Services 700 Main Street Little Rock, AR 72201 (501) 682-8985 Renee.Ikard@dhs.arkansas.gov

View Audit 348267

Finding 530161 (2024-013)

Significant Deficiency 2024

State of Arkansas

AR

Subrecipient Monitoring Eligibility Reporting § 200.303

Views of Responsible Officials and Planned Corrective Action: ARS Discussion The Agency acknowledges the lack of adequate internal controls necessary to ensure accurate maintenance of supporting documentation during our migration to our new case management system (CMS). ARS Action Taken The Agency h...

Views of Responsible Officials and Planned Corrective Action: ARS Discussion The Agency acknowledges the lack of adequate internal controls necessary to ensure accurate maintenance of supporting documentation during our migration to our new case management system (CMS). ARS Action Taken The Agency has taken the below steps to mitigate the lack of internal controls regarding supporting documentation, mainly attachments, located in our CMS in the future. • As the transfer of data to our new CMS platform concludes, that impediment has significantly diminished. The Agency has an appropriate method of control in place to detect any case file errors that may occur because of an incomplete retrieval or an insufficient data element input. In both instances, data analyst personnel from Program, Planning, Development and Evaluation (PPD&E) employ RSA’s edit check process that identifies specific errors prior to submission of the RSA 911 report. Those errors are then methodically corrected in our CMS ensuring the RSA 911 report is error free. • In instances where information is miscoded in the client case file, or is missing, the division’s Quality Assurance (QA) team identifies those errors and employes best practice training methods to ensure the case file complies with federal regulations. • Finally, our new CMS data hosted on an AR DIS platform is regularly backed up on a separate server to ensure that if anything were to happen to the primary CMS, we have a back up of all case data, including supporting documentation, and attachments. This data would be able to be accessed as a backup if data in the CMS was compromised in any way. Anticipated Completion Date: Complete Contact Person: Robert Trevino Associate Commissioner of PPD&E Arkansas Rehabilitation Services 1 Commerce Way Little Rock, AR 72202 (501) 296-1604 Robert.Trevino@Arkansas.gov

View Audit 348267

Finding 530160 (2024-012)

Significant Deficiency 2024

State of Arkansas

AR

Reporting Internal Control / Segregation of Duties Subrecipient Monitoring § 200.303

Views of Responsible Officials and Planned Corrective Action: ARS Discussion The Agency acknowledges the failure to adequately submit the RSA-17 report for the quarter ending June 30, 2024, for the federal fiscal year 2023 grant award. ARS Action Taken The Agency has taken the below steps to mitigat...

Views of Responsible Officials and Planned Corrective Action: ARS Discussion The Agency acknowledges the failure to adequately submit the RSA-17 report for the quarter ending June 30, 2024, for the federal fiscal year 2023 grant award. ARS Action Taken The Agency has taken the below steps to mitigate oversight of reporting deadlines and lack of internal controls. • ARS fiscal has hired three additional staff members whose purpose will be in-part to collect, interpret, and submit data with regards to RSA17 reports. • A RSA17 policy was submitted RSA in January 2025. This policy speaks to enhanced ARS internal controls for timeliness of collecting data, and oversight to ensure proper preparation and submission of these federal financial reports moving forward. These include multi personnel responsibility checks for collection at minimum one week prior to report submission with Manager and Deputy Commissioner to ensure data collection and submission are on-time. Anticipated Completion Date: Complete Contact Person: April Cooper Deputy Director of Finance Arkansas Department of Commerce 1 Commerce Way Little Rock, AR 72202 (501) 682-4771 April.Cooper@Arkansas.gov

View Audit 348267

Finding 530153 (2024-005)

Significant Deficiency 2024

State of Arkansas

AR

Questioned Costs Cash Management Subrecipient Monitoring § 200.303 § 200.400

Views of Responsible Officials and Planned Corrective Action: The Arkansas Department of Education (ADE), Division of Elementary and Secondary Education (DESE), Health and Nutrition Unit (HNU), concur with the finding. The HNU Finance staff implemented procedures for meal claim payment requests whic...

Views of Responsible Officials and Planned Corrective Action: The Arkansas Department of Education (ADE), Division of Elementary and Secondary Education (DESE), Health and Nutrition Unit (HNU), concur with the finding. The HNU Finance staff implemented procedures for meal claim payment requests which include an initial and final review of all requests to be conducted by two (2) staff. The review process includes, but is not limited to, ensuring expenditures are assigned correct codes related to the appropriate funding source within the appropriate grant year, mitigating the Child Nutrition Program (CNP), Child and Adult Care Food Program (CACFP) Sponsor Administrative expenditure errors going forward. When the request is determined to be compliant, the Associate Director of Finance and Training approves payments before being forwarded to the ADE Finance team for payment. Anticipated Completion Date: March 15, 2025 Contact Person: Sheila Chastain Associate Director Arkansas Department of Education, DESE, Nutrition Services #4 Capitol Mall, Box #12 Little Rock, AR 72201 (501) 324-9502 Sheila.Chastain@ade.arkansas.gov Pamela Burton Director Arkansas Department of Education, DESE, Nutrition Services #4 Capitol Mall, Box #19 Little Rock, AR 72201 (501) 320-8978 Pamela.Burton@ade.arkansas.gov

View Audit 348267 Questioned Costs: $1

Finding 530152 (2024-004)

Significant Deficiency 2024

State of Arkansas

AR

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

Views of Responsible Officials and Planned Corrective Action: The Arkansas Department of Education (ADE), Division of Elementary and Secondary Education (DESE), Health and Nutrition Unit (HNU), concur with the finding. The HNU implemented a new application and payment system that began in 2024. Du...

Views of Responsible Officials and Planned Corrective Action: The Arkansas Department of Education (ADE), Division of Elementary and Secondary Education (DESE), Health and Nutrition Unit (HNU), concur with the finding. The HNU implemented a new application and payment system that began in 2024. During implementation and subsequent operations, several issues with data transfers between the old and new system were identified and now corrected. The HNU Application and Finance staff will receive training to ensure that all criteria are met prior to the retroactive payment of claims. Anticipated Completion Date: April 1, 2025 Contact Person: Sheila Chastain Associate Director Arkansas Department of Education, DESE, Nutrition Services #4 Capitol Mall, Box #12 Little Rock, AR 72201 (501) 324-9502 Sheila.Chastain@ade.arkansas.gov Pamela Burton Director Arkansas Department of Education, DESE, Nutrition Services #4 Capitol Mall, Box #19 Little Rock, AR 72201 (501) 320-8978 Pamela.Burton@ade.arkansas.gov

View Audit 348267 Questioned Costs: $1

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