Corrective Action Plans

Finding 565807 (2024-004)

Significant Deficiency 2024

Human Services of Faribault and Martin Counties

MN

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Cash Management

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Medical Assistance Program (Medicaid Cluster) Assistance Listing Number: 93.778 Federal Award Identification Numbers and Year: 2405MN5MAP and 2405MN5ADM, 2024 Pass-Through Agency: Minnesota Department of Human Ser...

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Medical Assistance Program (Medicaid Cluster) Assistance Listing Number: 93.778 Federal Award Identification Numbers and Year: 2405MN5MAP and 2405MN5ADM, 2024 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 2405MN5MAP and 2405MN5ADM Compliance Requirement Affected: Allowable Costs/Allowable Activities Award Period: Year-Ended December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Recommendation: It is recommended the Agency implement control procedures to ensure Income Maintenance Random Moment Study (IMRMS) and Social Services Time Study (SSTS) listings are accurate. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Agency will review procedures and implement changes as needed to ensure going forward that the IMRMS and SSTS listings are accurate. Name of the contact person responsible for corrective action plan: Chera Sevcik, Human Services Executive Director Planned completion date for corrective action plan: December 31, 2025

View Audit 359512

Finding 565806 (2024-003)

Significant Deficiency 2024

Metropolitan Economic Development Association

MN

Procurement, Suspension & Debarment Significant Deficiency § 200.303

Federal Agency Name: Department of Treasury Assistance Listing Number: 21.033 Program Name: Community Development Financial Institutions Equitable Recovery Program Finding Summary: MEDA does not have a formal process to search for suspension and debarment of entities prior to entering into a loan ...

Federal Agency Name: Department of Treasury Assistance Listing Number: 21.033 Program Name: Community Development Financial Institutions Equitable Recovery Program Finding Summary: MEDA does not have a formal process to search for suspension and debarment of entities prior to entering into a loan agreement. Corrective Action Plan: MEDA has an extensive underwriting process that reviews all borrowers from a variety of state and national databases for fraud, debt, and money laundering activities. In our current underwriting process, we search SAM. gov for SBA loan requests. As of May 1, 2025, we are searching SAM. gov for all of our loan requests. Furthermore, we have added this requirement to our loan underwriting manual, as evidenced by Section 10, Letter D for the search list of legal, financial and personal documents that are required to approve a loan at MEDA. Responsible Individuals: Adrian Ruddock – VP of Lending & Business Consulting, Raynette Buerke – Sr. Loan Administration Manager Anticipated Completion Date: May 1, 2025

View Audit 359504

Finding 565772 (2024-003)

Significant Deficiency 2024

Boys & Girls Club of Huntington County, Inc.

IN

Allowable Costs / Cost Principles Cash Management Significant Deficiency

2024-003 Twenty-First Century Community Learning Centers -Assistance Listing No. 84.287 Significant Deficiency in Internal Control Over Compliance and Noncompliance - Appropriate Internal Control Structure Related to Compliance Requirements A. Activities Allowed or Unallowed, B. Allowable Costs/Cost...

2024-003 Twenty-First Century Community Learning Centers -Assistance Listing No. 84.287 Significant Deficiency in Internal Control Over Compliance and Noncompliance - Appropriate Internal Control Structure Related to Compliance Requirements A. Activities Allowed or Unallowed, B. Allowable Costs/Cost Principles, and C. Cash Management Recommendation: The Auditor recommends the policies in accordance with §200.302 Financial Management paragraph (b) (6) and (b)(7) be written by the Organization, approved by the Board of Directors, and included in the permanent files of the Organization. Planned Corrective Action: We agree with the recommendation, and updated our policies in accordance with §200.302 Financial Management paragraph (b) (7) in December 2024 and will update our policies in accordance with (b) (6) by August 2025.

View Audit 359460

Finding 565731 (2024-002)

Significant Deficiency 2024

Community Action Agency of Jackson, Lenawee, and Hillsdale

MI

Subrecipient Monitoring Reporting Allowable Costs / Cost Principles § 200.328

2024-002 - Late submission of reports Auditor Description of Condition and Effect: The Agency failed to submit the required report for the federal grant within the stipulated deadlines as outlined in the grant agreement and Uniform Guidance. During reporting testing, it was noted that the Final FFR ...

2024-002 - Late submission of reports Auditor Description of Condition and Effect: The Agency failed to submit the required report for the federal grant within the stipulated deadlines as outlined in the grant agreement and Uniform Guidance. During reporting testing, it was noted that the Final FFR report was not submitted into the Payment Management Services (PMS) prior to the required due date. Late submission of reports results in noncompliance with federal regulations, potentially leading to administrative actions such as withholding of future grant funds, increased monitoring, or other penalties as deemed appropriate by the Federal awarding agency. The Agency did not comply with contractual reporting requirements. Auditor Recommendation: We recommend the Agency implement procedures to ensure timely submission of all required reports. Corrective Action: The Agency will implement a system of reviewing the semi-annual and annual federal financial reporting which would include the reports being prepared by the Financial Grants Manager, reviewed by the Chief Financial Officer and submitted by the Chief Executive Officer, all of whom will be aware of the reporting due dates as to ensure they are filed timely. Responsible Person: Anthony J Samon, CFO Anticipated Completion Date: Immediately, the Agency’s next FFR due date is September 30th.

View Audit 359441

Finding 565672 (2024-001)

Significant Deficiency 2024

Boys & Girls Clubs of Southeastern Michigan

MI

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting

Delinquent Filing of Reports Auditor Description of Condition and Effect: The Organization failed to submit certain reports for the federal grant within the stipulated deadlines as outlined in the grant agreement and Uniform Guidance. Late or delinquent submission of reports results in noncompliance...

Delinquent Filing of Reports Auditor Description of Condition and Effect: The Organization failed to submit certain reports for the federal grant within the stipulated deadlines as outlined in the grant agreement and Uniform Guidance. Late or delinquent submission of reports results in noncompliance with federal regulations, potentially leading to administrative actions such as withholding of future grant funds, increased monitoring, or other penalties as deemed appropriate by the Federal awarding agency. The Organization did not comply with certain contractual reporting requirements. Auditor Recommendation: We recommend the Organization implement procedures to ensure timely submission of all required reports. Corrective Action: BGCSM leadership agrees with the audit finding noted above. BGCSM will establish and document clear grant administration policies and procedures. The processes will include steps to ensure a thorough understanding of the reporting requirements to ensure timely and accurate reporting. Responsible Person: Resource Development – Julia Callis and Gregory McPherson Anticipated Completion Date: 6/30/2025

View Audit 359350

Finding 565660 (2024-002)

Significant Deficiency 2024

Housing Authority of the City of Greenville

NC

HUD Housing Programs Subrecipient Monitoring Eligibility

Finding 2024-002 – Continuum of Care Tenant Files – Eligibility – Internal Control over Tenant Files – Noncompliance and Significant Deficiency Corrective Action Plan: The Housing Authority of the City of Greenville (HACG) has implemented and/or will implement the following by our fiscal year-end ...

Finding 2024-002 – Continuum of Care Tenant Files – Eligibility – Internal Control over Tenant Files – Noncompliance and Significant Deficiency Corrective Action Plan: The Housing Authority of the City of Greenville (HACG) has implemented and/or will implement the following by our fiscal year-end September 30, 2025: a. Program Coordinators will maintain all Continuum of Care Tenant files in individual file folders designated by special purpose voucher programs. All loose documents will be anchored in tenant files. b. An action plan has been developed for the Continuum of Care programs to ensure that all program files are HUD, State, and HACG compliant starting with October 1, 2024, files through the current. c. Continuum of Care fiscal year 2024 (October 2023-September 2024) re- exams and interims will be caught up and completed as they become effective. All tenant files will be reviewed and compliant by FYE2024. d. All late/overdue re-exams will be compliant by FYE2024. e. During FYE2024, the Housing Choice Voucher Director will perform quality controls on all Continuum of Care tenant files processed each month prior to initialization (25th-30th of each month). f. File checklist sheets will be placed in each file upon quality control review to be signed off by the Housing Choice Voucher Director. g. Additional training will be required and ongoing for Program Coordinators. h. Other internal control measures will be implemented as deemed necessary by the Deputy Executive Director/COO, to eliminate future audit findings. Person Responsible: Shanetta Moye, Deputy Executive Director/COO Anticipated Completion Date: September 30, 2025

View Audit 359338

Finding 565659 (2024-001)

Significant Deficiency 2024

Housing Authority of the City of Greenville

NC

HUD Housing Programs Subrecipient Monitoring Eligibility

Finding 2024-001 – Housing Choice Voucher Tenant Files – Eligibility – Internal Control over Tenant Files – Noncompliance and Significant Deficiency Corrective Action Plan: The Housing Authority of the City of Greenville (HACG) has implemented and/or will implement the following by our fiscal year...

Finding 2024-001 – Housing Choice Voucher Tenant Files – Eligibility – Internal Control over Tenant Files – Noncompliance and Significant Deficiency Corrective Action Plan: The Housing Authority of the City of Greenville (HACG) has implemented and/or will implement the following by our fiscal year-end September 30, 2025: a. Housing Choice Voucher tenant files will be reviewed and quality controlled each month prior to initialization (25th-30th of each month) by the Housing Choice Voucher Director. b. An action plan has been developed for the Housing Choice Voucher department to ensure that all Housing Choice Voucher files are HUD and GHA compliant starting with October 1, 2024 files through the current. c. Housing Choice Voucher calendar-year 2024 (October 2023-September 2024) re-exams are substantially complete, as they become effective. All tenant files will be reviewed and HUD-compliant by FYE2024. d. During FYE2024, the Housing Choice Voucher Director will perform 40% quality controls of the monthly re-exams processed by the Housing Specialists. e. File checklist sheets will be placed in each file upon quality control review to be signed off by the Housing Choice Voucher Director. f. Additional training has been and will be made available as necessary. g. Other internal control measures will be implemented as deemed necessary by the Deputy Executive Director/COO, to eliminate future audit findings. Person Responsible: Shanetta Moye, Deputy Executive Director/COO Anticipated Completion Date: September 30, 2025

View Audit 359338

Finding 565484 (2024-037)

Significant Deficiency 2024

Commonwealth of Massachusetts

MA

Subrecipient Monitoring Reporting Significant Deficiency § 200.303

DEPARTMENT OF PUBLIC HEALTH 2024-037 Opioid-STR - Assistance Listing No. 93.788 Recommendation: We recommend the Department complete implementation of its corrective action plan from the prior audit year. It should establish procedures and internal controls to ensure that all required subawards are ...

DEPARTMENT OF PUBLIC HEALTH 2024-037 Opioid-STR - Assistance Listing No. 93.788 Recommendation: We recommend the Department complete implementation of its corrective action plan from the prior audit year. It should establish procedures and internal controls to ensure that all required subawards are reported timely and accurately to FSRS no later than the end of the month following the month of issuance of each subaward. Action taken in response to finding: All subrecipient FFATA information will be batched and uploaded to FSRS within 30 days of execution of subcontracts. Each month the FFATA submission receipt and all additional records pertaining to the upload will be saved. The internal Fiscal Compliance Auditor will review FFATA monthly submissions for compliance. Uploads will be made monthly by The Grants team. The Grants team at BSAS has created a Standard Operating Procedure (SOP) to make sure this process is repeated every month. Name(s) of the contact person(s) responsible for corrective action: Windy Senecharles Planned completion date for corrective action plan: July 1, 2025

View Audit 359283

Finding 565479 (2024-035)

Significant Deficiency 2024

Commonwealth of Massachusetts

MA

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

EXECUTIVE OFFICE OF HEALTH AND HUMAN SERVICES 2024-035 Medicaid Cluster, COVID-19 – Medicaid Cluster - Assistance Listing No. 93.775, 93.777, 93.778 Recommendation: The Department should enhance its procedures and internal controls to ensure it promptly follows up with participants whose eligibility...

EXECUTIVE OFFICE OF HEALTH AND HUMAN SERVICES 2024-035 Medicaid Cluster, COVID-19 – Medicaid Cluster - Assistance Listing No. 93.775, 93.777, 93.778 Recommendation: The Department should enhance its procedures and internal controls to ensure it promptly follows up with participants whose eligibility review identifies errors and that ineligible participants are terminated from the program. Action taken in response to finding: The State will implement the following corrective actions to enhance the oversight within the Eligibility Quality Assurance (EQA) program: • Annual refresher training for supervisory staff The State will perform an annual refresher training for all Team Leaders and Supervisors who are responsible for reviewing and correcting tasks identified by the Eligibility Quality Assurance unit. • Comprehensive training for new supervisory workers The State will ensure that all newly appointed Team Leaders and Supervisors receive a comprehensive training that will include a detailed overview of the eligibility review and correction process established by the Eligibility Quality Assurance unit. • Review of corrections The State will establish a process to assist and remind managers and supervisors that they are expected to review and approve all corrections made by the eligibility workers in response to the Eligibility Quality Assurance Unit findings. Documentations of such corrections will be maintained for audit and monitoring purposes. • Standardized member outreach process for incomplete Employee Sponsored Insurance forms (ESI). The State will develop and implement a standardized process for timely outreach to members whose ESI form is identified as incomplete. Name(s) of the contact person(s) responsible for corrective action: Tosin Adebiyi, Assistant Director of Special Eligibility Programs and Audits Marco Gonzalez, Eligibility Quality Assurance Team Leader Planned completion date for corrective action plan: All corrective actions are targeted for full implementation by December 31st, 2026.

View Audit 359283

Finding 565475 (2024-034)

Significant Deficiency 2024

Commonwealth of Massachusetts

MA

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

EXECUTIVE OFFICE OF HEALTH AND HUMAN SERVICES 2024-034 Medicaid Cluster, COVID-19 – Medicaid Cluster - Assistance Listing No. 93.775, 93.777, 93.778 Recommendation: The Department should enhance its procedures and internal controls to ensure it properly monitors high-risk providers and that it maint...

EXECUTIVE OFFICE OF HEALTH AND HUMAN SERVICES 2024-034 Medicaid Cluster, COVID-19 – Medicaid Cluster - Assistance Listing No. 93.775, 93.777, 93.778 Recommendation: The Department should enhance its procedures and internal controls to ensure it properly monitors high-risk providers and that it maintains documentation that claims are paid only to eligible providers. Action taken in response to finding: Providers who are identified as high risk, are sent for fingerprinting. Once the fingerprinting results are received, they are scheduled for a site visit. Business Support Services have reinforced with staff that the site visit must follow the fingerprinting results. Additionally, a checklist will be created for all high-risk providers to ensure that all required steps in the process are completed at enrollment, revalidation or when they are identified as having a credible allegation of fraud or appropriate overpayment. Name(s) of the contact person(s) responsible for corrective action: Janice Wadsworth, MassHealth Director Provider Operations Keith West, Director Special Projects Business Support Services and Chris Silva, Manager Provider Enrollment Business Support Services. Planned completion date for corrective action plan: The checklist will be complete by July 2025.

View Audit 359283

Finding 565471 (2024-033)

Significant Deficiency 2024

Commonwealth of Massachusetts

MA

Questioned Costs Special Tests & Provisions Significant Deficiency § 200.303

EXECUTIVE OFFICE OF HEALTH AND HUMAN SERVICES 2024-033 Medicaid Cluster, COVID-19 – Medicaid Cluster - Assistance Listing No. 93.775, 93.777, 93.778 Recommendation: We recommend that the Department enhance its procedures and controls to ensure that the calculation of the federal share of overpayment...

EXECUTIVE OFFICE OF HEALTH AND HUMAN SERVICES 2024-033 Medicaid Cluster, COVID-19 – Medicaid Cluster - Assistance Listing No. 93.775, 93.777, 93.778 Recommendation: We recommend that the Department enhance its procedures and controls to ensure that the calculation of the federal share of overpayments to be returned is accurate and is properly reported on the CMS-64. Action taken in response to finding: In response to the finding, MassHealth will: ▪ Add additional validation checks where possible to flag discrepancies or potential errors. ▪ Continue to automate and improve the importation of data to allow more time for quality control review. ▪ Continue to work with staff and provide additional training and guidance ▪ Continue to work with staff to develop additional check points to ensure the correct federal share is reported and returned. Name(s) of the contact person(s) responsible for corrective action: Janet Chin, Director Federal Revenue Claiming, Title XIX & XXI Planned completion date for corrective action plan: Immediate and ongoing

View Audit 359283 Questioned Costs: $1

Finding 565465 (2024-029)

Significant Deficiency 2024

Commonwealth of Massachusetts

MA

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

EXECUTIVE OFFICE OF HOUSING AND LIVABLE COMMUNITIES 2024-029 Low-Income Home Energy Assistance - Assistance Listing No. 93.568 Recommendation: We recommend that the Department review and enhance its procedures and internal controls to ensure that special reports are submitted accurately, and that th...

EXECUTIVE OFFICE OF HOUSING AND LIVABLE COMMUNITIES 2024-029 Low-Income Home Energy Assistance - Assistance Listing No. 93.568 Recommendation: We recommend that the Department review and enhance its procedures and internal controls to ensure that special reports are submitted accurately, and that the information reported agrees to supporting documentation. Action taken in response to finding: The Executive Office of Housing and Livable Communities (EOHLC), which was formerly the Department of Housing and Community Development (DHCD or Department), has implemented the recommended measures and will continue them going forward. EOHLC has reviewed their policies and procedures for LIHEAP reporting requirements and is committed to making any enhancements that are necessary to ensure the reports are submitted timely and accurately, and that the information reported agrees to the supporting documentation. In addition, EOHLC Management or their designees will review deadlines and other requirements for LIHEAP reports on an ongoing basis. Name(s) of the contact person(s) responsible for corrective action: Edward Kiely Planned completion date for corrective action plan: October 1, 2024

View Audit 359283

Finding 565464 (2024-028)

Significant Deficiency 2024

Commonwealth of Massachusetts

MA

Subrecipient Monitoring Reporting Significant Deficiency § 200.303

EXECUTIVE OFFICE OF HOUSING AND LIVABLE COMMUNITIES 2024-028 Low-Income Home Energy Assistance - Assistance Listing No. 93.568 Recommendation: We recommend the Department review and enhance its procedures and internal controls to ensure that all required subawards are reported timely and accurately ...

EXECUTIVE OFFICE OF HOUSING AND LIVABLE COMMUNITIES 2024-028 Low-Income Home Energy Assistance - Assistance Listing No. 93.568 Recommendation: We recommend the Department review and enhance its procedures and internal controls to ensure that all required subawards are reported timely and accurately to FSRS no later than the end of the month following the month of issuance of each subaward. Action taken in response to finding: The Executive Office of Housing and Livable Communities (EOHLC), which was formerly the Department of Housing and Community Development (DHCD or Department), has implemented the recommended measures and will continue them going forward. As a result of the original finding, 2022-018, EOHLC had previously put policies and procedures in place to ensure that all required subawards are reported timely and accurately to FSRS, and the Federal Funding Accountability and Transparency Act (FFATA) reports are reported timely and accurately. EOHLC’s FFATA report procedure was developed in September of 2023 and submitted on November 20, 2023. EOHLC notes that policies and procedures have already been put in place to remedy this issue. Name(s) of the contact person(s) responsible for corrective action: Frederique P. Phanor Planned completion date for corrective action plan: FFATA report procedure developed September 12, 2023 and LIHEAP submitted November 20, 2023

View Audit 359283

Finding 565463 (2024-027)

Significant Deficiency 2024

Commonwealth of Massachusetts

MA

Eligibility Special Tests & Provisions Significant Deficiency § 200.303

DEPARTMENT OF TRANSITIONAL ASSISTANCE 2024-027 Temporary Assistance for Needy Families (TANF) - Assistance Listing No. 93.558 Recommendation: We recommend the Department evaluate its procedures and internal controls to ensure that information used to verify work participation is complete, accurate, ...

DEPARTMENT OF TRANSITIONAL ASSISTANCE 2024-027 Temporary Assistance for Needy Families (TANF) - Assistance Listing No. 93.558 Recommendation: We recommend the Department evaluate its procedures and internal controls to ensure that information used to verify work participation is complete, accurate, and agrees with supporting documentation. Action taken in response to finding: A. Program requirements on work hours self-attestation for self-employed The Department will work on guidance that complies with the federal rules and develop instructions for staff on how to determine hours of work for those who are self-employed. B. Accuracy of reported hours of work Quality Control (QC) managers will initial the unsubsidized hours field and the corresponding supporting documentation to indicate that a thorough review has been completed. The current procedure requires QC managers to review all cases, which 250 to 300 cases per month. Further, QC staff will also be reminded of the importance of accurately coding unsubsidized employment hours and will be instructed to double-check their work to minimize errors and maintain data integrity. QC management maintains the practice of reviewing a random 20% sample of all unsubsidized employment hours coded prior to quarterly transmission to ACF, to ensure ongoing accuracy and compliance. QC management will work with IT to explore the possibility of developing a management report or error report using backend BEACON data that would show specifics of errors corrected by QC managers or QC management to assist management in providing targeted training to QC staff. Name(s) of the contact person(s) responsible for corrective action: Megan Nicholls, Associate Commissioner of Family and Economic Assistance Carlos Rosado, Director of Quality Control | Quality Management Planned completion date for corrective action plan: September 30, 2025 – Issue instruction and guidance that complies with the federal rules October 30, 2025 – Implement enhanced procedures accuracy of reported work hours

View Audit 359283

Finding 565462 (2024-026)

Significant Deficiency 2024

Commonwealth of Massachusetts

MA

Questioned Costs Special Tests & Provisions Student Financial Aid § 200.303

DEPARTMENT OF TRANSITIONAL ASSISTANCE 2024-026 Temporary Assistance for Needy Families (TANF) - Assistance Listing No. 93.558 Recommendation: We recommend the Department evaluate its procedures and internal controls over Child Support Non-Cooperation to ensure that sanctions are applied timely. Acti...

DEPARTMENT OF TRANSITIONAL ASSISTANCE 2024-026 Temporary Assistance for Needy Families (TANF) - Assistance Listing No. 93.558 Recommendation: We recommend the Department evaluate its procedures and internal controls over Child Support Non-Cooperation to ensure that sanctions are applied timely. Action taken in response to finding: The Department will utilize existing training opportunities, including but not limited to new hire training, monthly supervisor webinars and ad hoc guest training from DOR to address this topic as needed. Further, the Department is working on building out a quality control program on sampling of TAFDC cases in the Quality Management organization. When built out, this program would include a sample review of child support non-cooperative cases to ensure sanctions are applied timely and appropriately. In the interim, ad hoc targeted reviews on this topic will be performed annually at minimum as a compensating control for risk mitigation. Reviews will be performed on a sample basis. Name(s) of the contact person(s) responsible for corrective action: Megan Nicholls, Associate Commissioner of Family and Economic Assistance - Training Lily Kuo, Director of Internal Controls – Ad hoc Targeted Reviews Planned completion date for corrective action plan: September 30, 2025 and forward – Facilitate training March 30, 2026 and forward – Perform ad hoc targeted reviews

View Audit 359283 Questioned Costs: $1

Finding 565461 (2024-025)

Significant Deficiency 2024

Commonwealth of Massachusetts

MA

Matching / Level of Effort / Earmarking Eligibility Reporting § 200.303

DEPARTMENT OF TRANSITIONAL ASSISTANCE 2024-025 Temporary Assistance for Needy Families (TANF) - Assistance Listing No. 93.558 Recommendation: We recommend the Department evaluate its procedures and internal controls over reporting to ensure that reports are supported by documentation and are submitt...

DEPARTMENT OF TRANSITIONAL ASSISTANCE 2024-025 Temporary Assistance for Needy Families (TANF) - Assistance Listing No. 93.558 Recommendation: We recommend the Department evaluate its procedures and internal controls over reporting to ensure that reports are supported by documentation and are submitted timely. Action taken in response to finding: The Department will evaluate, enhance, and document its procedures and internal controls over the ACF-209 reporting to ensure the data in the reports are supported by documentation. Specifically, participants with zero earned income should not have a blank field and the reported unsubsidized hours - Block 43 UnsubEmpHrsc - in BEACON QI and the ACF-209 reports should be supported by BEACON Program, where applicable. Further, the Department will submit the ACF-209 reports timely on a quarterly basis. This includes reviewing and correcting rejected submissions and the errors from the partially accepted submissions by ACF and resubmitting the reports until acceptance by ACF. Name(s) of the contact person(s) responsible for corrective action: Birabwa Kajubi, Associate Commission for Quality Management Roubina Panian, Quality Improvement Director | Quality Management Planned completion date for corrective action plan: October 30, 2025 – Implement enhanced procedures on data accuracy August 14, 2025 and forward – Timely submission of data reports

View Audit 359283

Finding 565460 (2024-024)

Significant Deficiency 2024

Commonwealth of Massachusetts

MA

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

DEPARTMENT OF TRANSITIONAL ASSISTANCE 2024-024 Temporary Assistance for Needy Families (TANF) - Assistance Listing No. 93.558 Recommendation: We recommend the Department evaluate its procedures and internal controls over reporting to ensure that reports are submitted timely. Action taken in response...

DEPARTMENT OF TRANSITIONAL ASSISTANCE 2024-024 Temporary Assistance for Needy Families (TANF) - Assistance Listing No. 93.558 Recommendation: We recommend the Department evaluate its procedures and internal controls over reporting to ensure that reports are submitted timely. Action taken in response to finding: Going forward, the new budget director will test her access to the ACF platform in advance of the report due date to mitigate any technical issue in report submission. Name(s) of the contact person(s) responsible for corrective action: Azra Beels, Budget Director | DTA Finance Planned completion date for corrective action plan: Q4 2025 and forward

View Audit 359283

Finding 565459 (2024-023)

Significant Deficiency 2024

Commonwealth of Massachusetts

MA

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

DEPARTMENT OF TRANSITIONAL ASSISTANCE 2024-023 COVID-19 - Temporary Assistance for Needy Families (TANF) - Assistance Listing No. 93.558 Recommendation: We recommend the Department evaluate its procedures and internal controls over reporting to ensure that reports are submitted timely. Action taken...

DEPARTMENT OF TRANSITIONAL ASSISTANCE 2024-023 COVID-19 - Temporary Assistance for Needy Families (TANF) - Assistance Listing No. 93.558 Recommendation: We recommend the Department evaluate its procedures and internal controls over reporting to ensure that reports are submitted timely. Action taken in response to finding: Despite the delay in filing FY23, the final report in FY24 was submitted on time and the reporting requirements have now ended. Name(s) of the contact person(s) responsible for corrective action: Easton Hill, Director of Federal Revenue - TANF/SNAP | EOHHS OFFR Planned completion date for corrective action plan: Complete

View Audit 359283

Finding 565422 (2024-006)

Significant Deficiency 2024

Commonwealth of Massachusetts

MA

Special Tests & Provisions Eligibility Reporting § 200.303

EXECUTIVE OFFICE OF LABOR AND WORKFORCE DEVELOPMENT Unemployment Insurance, COVID-19 – Unemployment Insurance - Assistance Listing No. 17.225 Recommendation: We recommend the Department review and enhance procedures and controls to ensure that RESEA program requirements are met. We further recommend...

EXECUTIVE OFFICE OF LABOR AND WORKFORCE DEVELOPMENT Unemployment Insurance, COVID-19 – Unemployment Insurance - Assistance Listing No. 17.225 Recommendation: 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: MDUA’s legacy system had a known issue with maintaining documents. In some instances, the legacy system did not keep a copy of correspondence. In May 2025, MDUA implemented a new, modernized UI administrative system known as EMT. During the integration process, memorializing documents the system generated was a priority. Now with a fully implemented system, all documents will be saved. In addition, the RESEA program has a required reporting standard administered through the federal SUN system. Although MDUA has an established process for completing this work, MDUA does not have an audit trail to show it was completed. Moving forward, MDUA will enhance this procedure to ensure MDUA has documentation to maintain compliance. Name(s) of the contact person(s) responsible for corrective action: John Saulnier, Director of Benefit Performance Planned completion date for corrective action plan: 9/30/2025

View Audit 359283

Finding 565420 (2024-005)

Significant Deficiency 2024

Commonwealth of Massachusetts

MA

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

EXECUTIVE OFFICE OF LABOR AND WORKFORCE DEVELOPMENT 2024-005 Unemployment Insurance, COVID-19 – Unemployment Insurance - Assistance Listing No. 17.225 Recommendation: We recommend the Department review and enhance procedures and controls to ensure that BAM case investigations are completed timely in...

EXECUTIVE OFFICE OF LABOR AND WORKFORCE DEVELOPMENT 2024-005 Unemployment Insurance, COVID-19 – Unemployment Insurance - Assistance Listing No. 17.225 Recommendation: 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: Analysis showed that BAM Investigators spend a minimum of 20% of work hours devoted to clerical tasks necessary to develop an investigatory file. As part of MDUA’s modernized UI system, the new system features an electronic BAM casefile which should reduce clerical work 5% or below, and, in turn, allow additional time to investigate and complete case work. BAM has always relied on postal mail as a primary methodology to contact interested persons. By integrating the BAM casefile into the UI system, investigators can send questionnaires and notifications to interested persons through the system. In turn, interested persons may complete questionnaires and upload information into the system thereby reducing time between issuance of documents and response. Name(s) of the contact person(s) responsible for corrective action: Susan Saulnier, Director of UI Performs Planned completion date for corrective action plan: June 2026 This statistic is compiled for a year of data. Because BAM was not an on-line program, all cases prior to May 18, 2025 remain in the old format, and, therefore were not placed in the new system. As of May 19, 2025 and moving forward, all BAM cases will be held in the electronic case file. By June 2026, MDUA will have a year of data with improvements to BAM investigative methodology.

View Audit 359283

Finding 565378 (2024-002)

Significant Deficiency 2024

George J. and Hilda Meyer Foundation, Inc.

MO

Internal Control / Segregation of Duties Significant Deficiency Matching / Level of Effort / Earmarking

U.S. Department of Agriculture 2024-002 Communities Facilities Loans & Grants – Assistance Listing No. 10.766 Recommendation: We recommend the Foundation design controls to ensure that the calculation is completed in accordance with the loan agreement and funded in full prior to the end of each fisc...

U.S. Department of Agriculture 2024-002 Communities Facilities Loans & Grants – Assistance Listing No. 10.766 Recommendation: We recommend the Foundation design controls to ensure that the calculation is completed in accordance with the loan agreement and funded in full prior to the end of each fiscal year. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The USDA has waived this requirement in past years. The community obtained a waiver for the current period. Name(s) of the contact person(s) responsible for corrective action: Tiffany Goetz Planned completion date for corrective action plan: June 2, 2025

View Audit 359225

Finding 565360 (2024-001)

Significant Deficiency 2024

Path

WA

Subrecipient Monitoring Reporting Significant Deficiency

Finding 2024-001 PATH’s Response and Corrective Action Plan PATH has an established process for completing FFATA reporting in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) in compliance with the requirements of the Federal Funding Accountability and Transp...

Finding 2024-001 PATH’s Response and Corrective Action Plan PATH has an established process for completing FFATA reporting in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) in compliance with the requirements of the Federal Funding Accountability and Transparency Act (Pub. L. No. 109‐282) (FFATA) that are codified in Title 2 U.S. Code of Federal Regulations, Part 170 ‐ Reporting Subaward and Executive Compensation Information. Although PATH complied with all other FFATA reporting requirements, reports for two subawards were not filed by the end of the month following the month in which PATH awarded these sub‐grants greater than or equal to $30,000. For the FFATA filings that were submitted late, the cause was that an employee new to PATH that year who assumed FFATA reporting did not realize her entries were not saving in the system correctly. This issue was discovered as part of a routine management review of PATH’s FFATA reporting. When the issue was discovered, management repeated the training on the Office of Grants and Contract’s (OGC) business process for FFATA reporting with that staff member and assigned another member of the team to review entries in the last week of each month, preventing future late filings. In 2025, OGC Management will add the following actions to the FFATA reporting business process strengthen to ensure all filings are submitted in a timely manner. Action Responsible staff member Due date Repeat training on OGC’s business process for FFATA reporting with the two OGC staff members responsible for FFATA reporting for PATH OGC Management June 30, 2025 Provide monthly report to OGC management by the last day of each month confirming timely reporting OGC Staff responsible for FFATA reporting Throughout 2025

View Audit 359204

Finding 565356 (2024-001)

Significant Deficiency 2024

White Bear Lake Senior Housing, Inc. Dba: Willow Wood Apartments

MN

Questioned Costs HUD Housing Programs Significant Deficiency

Significant Deficiency in Internal Control over Compliance Recommendation: Recommend that a catchup payment is made as soon as possible to make the replacement reserve whole. Action taken in response to finding: A payment of $16,979 was deposited into the account as of March 31, 2025. Automatic paym...

Significant Deficiency in Internal Control over Compliance Recommendation: Recommend that a catchup payment is made as soon as possible to make the replacement reserve whole. Action taken in response to finding: A payment of $16,979 was deposited into the account as of March 31, 2025. Automatic payments were re-established to ensure no further issues due to lack of payment. Name of the contact person responsible for corrective action: Thomas Krolak Planned completion date for corrective action plan: March 31, 2025

View Audit 359184 Questioned Costs: $1

Finding 565324 (2024-001)

Significant Deficiency 2024

Bath Housing Development Corporation

ME

Eligibility HUD Housing Programs Significant Deficiency

Finfing Number: 2024-001: Eligibility Planned Corrective Action: 1. All 2024 reexamination files will be reviewed to confirm a corresponding file is present and social security income is accruately reflected. File findings will be noted accordingly. 2. Moving forward, a Quality Control audit will ...

Finfing Number: 2024-001: Eligibility Planned Corrective Action: 1. All 2024 reexamination files will be reviewed to confirm a corresponding file is present and social security income is accruately reflected. File findings will be noted accordingly. 2. Moving forward, a Quality Control audit will occur monthly to include: - Confirmation of corresponding file for every annual reexamination completed. - 50% of all reexamination files will be audited to confirm the following: > Verification of income and assets. > Gross income is accurately reflected. > An EIV report is present; social security income reported is accurate. > A signed 50059 is present in the file. The audit will be conducted by a staff member that did not complete the reexam. Anticipated Completion Date: 1. July 31, 2025; 2. Ongoing Responsible Contact Person: Jessica Irish

View Audit 359147

Finding 565207 (2024-002)

Significant Deficiency 2024

American Academy McAllister Institute of Funeral Service, Inc.

NY

Special Tests & Provisions Student Financial Aid Subrecipient Monitoring

Finding 2024-002 - Special Tests and Provisions - Federal Direct Loan Program Student Notification – Significant Deficiency Name of Federal Agency: U.S. Department of Education Federal Program Name: Federal Direct Student Loans Assistance Listing Number: 84.268 Federal Award Identification Number an...

Finding 2024-002 - Special Tests and Provisions - Federal Direct Loan Program Student Notification – Significant Deficiency Name of Federal Agency: U.S. Department of Education Federal Program Name: Federal Direct Student Loans Assistance Listing Number: 84.268 Federal Award Identification Number and Year: P268K243382 2024 Name of Pass-through Entity: N/A Planned Corrective Action: The failure to timely send out the required notification of Federal Direct Student Loan Program proceeds credited to one student’s account, as noted in the auditor’s findings, was an administrative oversight. In May 2025, the Institute reviewed and revised its current procedures to ensure that all required notifications are made. Under the revised procedures, an employee independent from the student loan proceed crediting notification process is to review that notifications are sent out within prescribed time frames in accordance with U.S. Department of Education regulations to all students receiving and being credited with Federal Direct Loan Program amounts and that copies of the notifications are maintained in each applicable student’s file.

View Audit 359094

Corrective Action Plans

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