Corrective Action Plans

Finding 568010 (2024-003)

Significant Deficiency 2024

WI

Procurement, Suspension & Debarment Subrecipient Monitoring

Corrective Actions Taken or Planned: The current procedure in the Financial Manual for procurement will need to be enforced and monitored closely. The procedure does include a guide for what should be included with contracts before being submitted for signature. This section will be updated to inclu...

Corrective Actions Taken or Planned: The current procedure in the Financial Manual for procurement will need to be enforced and monitored closely. The procedure does include a guide for what should be included with contracts before being submitted for signature. This section will be updated to include all purchases over $10,000, same as stated in the first paragraph of the procedure. The limit for this may change to $25,000 when the financial manual is updated. The staff who submit’s the voucher for payment will be responsible for attaching all necessary paperwork as required by our procurement procedure. This should include documentation for the basis of selection or justification for lack of competition, and proof that suspension and debarment was checked. Contact person(s) responsible for corrective action: Gina Brown, CFO Anticipated Completion Date: September 2025

View Audit 360368

Finding 568008 (2024-002)

Significant Deficiency 2024

Great Lakes Inter-Tribal Council Inc.

WI

Reporting Subrecipient Monitoring Internal Control / Segregation of Duties § 200.303

Corrective Actions Taken or Planned: Create procedures by the type of required reporting by grantor, as necessary. The procedure will include what and how the required report will be completed, who will and/or should review the required report, including signature for proof, and when the required re...

Corrective Actions Taken or Planned: Create procedures by the type of required reporting by grantor, as necessary. The procedure will include what and how the required report will be completed, who will and/or should review the required report, including signature for proof, and when the required report should be completed. Procedures will be added to the accounting department procedures and shared with staff as necessary. This is a work in progress and will continue to be adjusted as necessary. Contact person(s) responsible for corrective action: Gina Brown, CFO Anticipated Completion Date: September 2025

View Audit 360368

Finding 567972 (2024-001)

Significant Deficiency 2024

Hughes Village Council

AK

Subrecipient Monitoring Reporting Significant Deficiency

Finding 2024-001 Significant Deficiency in Internal Control over Compliance, Noncompliance - Reporting ...

Finding 2024-001 Significant Deficiency in Internal Control over Compliance, Noncompliance - Reporting Name of Contact Person: Cynthia Beatus, IGAP Coordinator Corrective action plan: The IGAP Coordinator will ensure that the annual federal financial report (FFR) will be submitted within the 120 day timeframe of the end of the project period. Proposed Completion Date: September 30, 2025

View Audit 360316

Finding 567905 (2024-001)

Significant Deficiency 2024

Muskingum Watershed Conservancy District

OH

Subrecipient Monitoring Special Tests & Provisions Cash Management § 200.208 § 200.328

The Conservancy District has implmenented controls and processes to ensure that the required reports are prepared and submitted timely.

View Audit 360251

Finding 567882 (2024-057)

Significant Deficiency 2024

State of Michigan

MI

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Finding 2024-057 Disaster Grants - Public Assistance (Presidentially Declared Disasters), ALN 97.036 - FFATA Reporting Management Views MSP agrees with the finding. The exception occurred due to an oversight during the transition to a new grant system. MSP immediately filed the report upon identifi...

Finding 2024-057 Disaster Grants - Public Assistance (Presidentially Declared Disasters), ALN 97.036 - FFATA Reporting Management Views MSP agrees with the finding. The exception occurred due to an oversight during the transition to a new grant system. MSP immediately filed the report upon identification. Planned Corrective Action MSP will review and update procedures for additional monitoring of the FFATA reporting process. Anticipated Completion Date September 30, 2025 Responsible Individual(s) Penny Burger, MSP

View Audit 360209

Finding 567881 (2024-056)

Significant Deficiency 2024

State of Michigan

MI

Subrecipient Monitoring Allowable Costs / Cost Principles Special Tests & Provisions § 200.303

Finding 2024-056 Disaster Grants - Public Assistance (Presidentially Declared Disasters), ALN 97.036 - EM Grants Manager Security Management and Access Controls Management Views MSP agrees with the finding. MSP implemented the EM Grants Manager system in November 2023 and did not fully establish pr...

Finding 2024-056 Disaster Grants - Public Assistance (Presidentially Declared Disasters), ALN 97.036 - EM Grants Manager Security Management and Access Controls Management Views MSP agrees with the finding. MSP implemented the EM Grants Manager system in November 2023 and did not fully establish procedures for maintaining documentation of user access forms, reviewing privileged access, and disabling inactive users due to the number of current disasters and limited staff. Planned Corrective Action For part a., MSP implemented an access approval process in November 2023 to maintain documentation of access request forms within the EM Grants Manager system. For parts b. and c., MSP will create procedures to help ensure the timely completion of privileged user reviews and inactive user deactivation. MSP will perform the required user reviews and deactivate applicable accounts by September 30, 2025. Anticipated Completion Date September 30, 2025 Responsible Individual(s) Penny Burger, MSP

View Audit 360209

Finding 567855 (2024-055)

Material Weakness 2024

State of Michigan

MI

Questioned Costs Eligibility Subrecipient Monitoring § 200.516

Finding 2024-055 Low-Income Home Energy Assistance, ALN 93.568 - Eligibility Determinations Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS implemented quarterly case reads beginning in fiscal year 2023, and during April 2023, MDHHS began monthly meetings with the B...

Finding 2024-055 Low-Income Home Energy Assistance, ALN 93.568 - Eligibility Determinations Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS implemented quarterly case reads beginning in fiscal year 2023, and during April 2023, MDHHS began monthly meetings with the BSC analyst team to discuss common errors, answer questions, provide guidance, and on a quarterly basis discuss the results of the State Emergency Relief (SER) case reads. During April 2024, MDHHS SER program policy management and staff began attending BSC leadership meetings to discuss SER case read data findings, policy changes, and communicate common errors found during audits. In addition to updating verification requirements on October 1, 2023, SER program policy management and staff added copay verification requirements on October 1, 2024. MDHHS completed system updates during April 2024 to allow specialists access to directly upload verification documentation to the electronic case file instead of providing the documentation to other areas to process and upload. MDHHS will provide annual training directly to counties that fail to meet the state average for SER case reads relating to verification of the client's income, client contribution payment, and proof of energy crisis. MDHHS will continue to communicate with BSCs and local offices regarding the requirements to obtain adequate verification and maintain sufficient documentation to support SER processing. MDHHS will also continue to provide direct SER guidance and clarification through the SER mailbox. Anticipated Completion Date September 30, 2025 Responsible Individual(s) Bethany Cabanaw, MDHHS Kent Schulze, MDHHS Julie McLaughlin, MDHHS

View Audit 360209 Questioned Costs: $1

Finding 567849 (2024-053)

Material Weakness 2024

State of Michigan

MI

Subrecipient Monitoring

Finding 2024-053 Refugee and Entrant Assistance State/Replacement Designee Administered Programs, ALN 93.566 - Subrecipient Audits and Subaward Information Management Views LEO agrees with the finding. Planned Corrective Action For part a., LEO OGM is working with LEO-IC to establish a process to ...

Finding 2024-053 Refugee and Entrant Assistance State/Replacement Designee Administered Programs, ALN 93.566 - Subrecipient Audits and Subaward Information Management Views LEO agrees with the finding. Planned Corrective Action For part a., LEO OGM is working with LEO-IC to establish a process to immediately identify which subrecipients are required to have a Single Audit and ensure reports are reviewed, and management decision letters issued timely when required. For parts b. and c., LEO OGM will have a more significant role in the review process and will work with the LEO Grants Office to help ensure that UEI and updated federal award information is always accurately and completely incorporated into agreements. As an extra measure, starting with fiscal year 2026, most grants with subrecipients will be single-year agreements. This will help ensure that federal award information that changes with the onset of a new fiscal year is not inadvertently overlooked during the amendment process. Anticipated Completion Date a. September 30, 2026 b. and c. October 31, 2025 Responsible Individual(s) Nicole Gorski, LEO Christopher Blondell, LEO

View Audit 360209

Finding 567848 (2024-052)

Material Weakness 2024

State of Michigan

MI

Subrecipient Monitoring Material Weakness Reporting § 200.514

Finding 2024-052 Refugee and Entrant Assistance State/Replacement Designee Administered Programs, ALN 93.566 - FFATA Reporting Management Views LEO agrees with the finding. Planned Corrective Action The LEO Finance Division updated its FFATA procedure effective March 2025 and has been working to c...

Finding 2024-052 Refugee and Entrant Assistance State/Replacement Designee Administered Programs, ALN 93.566 - FFATA Reporting Management Views LEO agrees with the finding. Planned Corrective Action The LEO Finance Division updated its FFATA procedure effective March 2025 and has been working to correct the inaccurate FFATA reporting for the Refugee and Entrant Assistance State/Replacement Designee Administered Programs subawards. All of LEO’s open subawards are reported correctly in SAM and LEO completed corrections to the closed subawards in April 2025. Going forward, LEO will ensure that future subawards are reported both accurately and timely in accordance with FFATA requirements. Anticipated Completion Date Completed Responsible Individual(s) Heidi Parker, LEO

View Audit 360209

Finding 567846 (2024-050)

Material Weakness 2024

State of Michigan

MI

Questioned Costs Allowable Costs / Cost Principles Eligibility § 200.516

Finding 2024-050 Refugee and Entrant Assistance State/Replacement Designee Administered Programs, ALN 93.566 - Assistance to Ineligible Refugees Management Views LEO and MDHHS agree with the finding. Planned Corrective Action MDHHS, in conjunction with LEO, will provide mandatory training for all ...

Finding 2024-050 Refugee and Entrant Assistance State/Replacement Designee Administered Programs, ALN 93.566 - Assistance to Ineligible Refugees Management Views LEO and MDHHS agree with the finding. Planned Corrective Action MDHHS, in conjunction with LEO, will provide mandatory training for all specialists that determine eligibility for refugee cash assistance payments by September 30, 2025. MDHHS also will implement ongoing management and peer-to-peer spot checks of cases to ensure that documentation is maintained to support the client’s eligibility beginning October 2025. In addition, MDHHS will determine if technical changes are needed to help ensure the proper documentation is in the electronic case file by December 31, 2025. If potential system modifications are needed, the Bridges technical team will follow the Departmental Work Intake Process for prioritization and determine an anticipated completion date for implementation. Anticipated Completion Date MDHHS has not yet determined an anticipated completion date because the date is dependent on the determination of whether system modifications are necessary. Responsible Individual(s) Benjamin Cabanaw, LEO Nicole Adams, LEO Bethany Cabanaw, MDHHS Kent Schutz, MDHHS Mariah Schaefer, MDHHS

View Audit 360209 Questioned Costs: $1

Finding 567845 (2024-049)

Significant Deficiency 2024

State of Michigan

MI

Subrecipient Monitoring Allowable Costs / Cost Principles Period of Performance

Finding 2024-049 Refugee and Entrant Assistance State/Replacement Designee Administered Programs, ALN 93.566 - Salesforce Security Management and Access Controls Management Views LEO agrees with the finding. Planned Corrective Action The LEO Office of Global Michigan (OGM) will improve established...

Finding 2024-049 Refugee and Entrant Assistance State/Replacement Designee Administered Programs, ALN 93.566 - Salesforce Security Management and Access Controls Management Views LEO agrees with the finding. Planned Corrective Action The LEO Office of Global Michigan (OGM) will improve established procedures and tracking logs to help ensure compliance with SOM Technical Standard 1340.00.020.01 (Access Control Standard). Specifically, LEO OGM will review user access semiannually for privileged accounts and annually for all other accounts. Also, LEO-IC is in the process of establishing a compliance team that will perform validation of the ongoing reviews. Anticipated Completion Date September 30, 2025 Responsible Individual(s) Ben Cabinaw, LEO Allen Williams, LEO

View Audit 360209

Finding 567838 (2024-047)

Significant Deficiency 2024

State of Michigan

MI

Subrecipient Monitoring

Finding 2024-047 Temporary Assistance for Needy Families, ALN 93.558 - Risk Assessment and During-the-Award Monitoring Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS monitors financial and programmatic reports submitted by the grantee and communicates with the gran...

Finding 2024-047 Temporary Assistance for Needy Families, ALN 93.558 - Risk Assessment and During-the-Award Monitoring Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS monitors financial and programmatic reports submitted by the grantee and communicates with the grantee on a consistent basis. The subrecipients identified in the finding were awarded separate grants, and MDHHS has implemented corrective action to help ensure each subrecipient is sufficiently monitored and evaluated for risk of noncompliance with program requirements. For the subrecipient identified in part a., MDHHS completed a risk assessment and evaluated the results for fiscal year 2025 to develop a documented monitoring plan. An annual monitoring plan and corrective action plan workbook have been developed and implemented to track monitoring activities and follow-up action related to deficiencies noted during monitoring. For the subrecipient identified in part b., MDHHS developed and implemented a template for fiscal year 2025 to document monitoring activities, including the follow-up action related to deficiencies noted during monitoring. Anticipated Completion Date Completed Responsible Individual(s) a. Lynn Nee, MDHHS b. Amber Troupe, MDHHS

View Audit 360209

Finding 567835 (2024-044)

Significant Deficiency 2024

State of Michigan

MI

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

Finding 2024-044 Temporary Assistance for Needy Families, ALN 93.558 - MiSACWIS Security Management and Access Controls Management Views MDHHS agrees with the finding. Planned Corrective Action For part a., MDHHS currently has a process in place to review the user narrative describing the incomp...

Finding 2024-044 Temporary Assistance for Needy Families, ALN 93.558 - MiSACWIS Security Management and Access Controls Management Views MDHHS agrees with the finding. Planned Corrective Action For part a., MDHHS currently has a process in place to review the user narrative describing the incompatible role exceptions within the DSA Michigan Statewide Automated Child Welfare Information System (MiSACWIS) request as part of the approval process. MDHHS will continue to work on adding an incompatible role form in the DSA MiSACWIS request with automated routing for appropriate approval. MDHHS anticipates completion of corrective action by October 30, 2025. For part b., MDHHS will evaluate the current DSA timelines for generation of access renewal and access drop requests and implement any necessary changes by September 30, 2025. MDHHS will continue to provide training for LOSCs via quarterly webinars to emphasize the appropriate procedures for granting access, reviewing, and comparing access. All new information related to security access is presented to the LOSCs during the webinars and one-on-one assistance is available as needed for additional support. Anticipated Completion Date a. October 30, 2025 b. September 30, 2025 Responsible Individual(s) Alana Lowe, MDHHS Deon Nelson, MDHHS

View Audit 360209

Finding 567757 (2024-012)

Material Weakness 2024

State of Michigan

MI

Questioned Costs Eligibility Subrecipient Monitoring § 200.516

Finding 2024-012 Medicaid Cluster, ALN 93.775, 93.777, and 93.778 and Children’s Health Insurance Program, ALN 93.767 - Beneficiary Eligibility Management Views MDHHS agrees with the identified exceptions for parts a. and c. of the finding. However, MDHHS disagrees that 3 Medicaid cases and 20 Chil...

Finding 2024-012 Medicaid Cluster, ALN 93.775, 93.777, and 93.778 and Children’s Health Insurance Program, ALN 93.767 - Beneficiary Eligibility Management Views MDHHS agrees with the identified exceptions for parts a. and c. of the finding. However, MDHHS disagrees that 3 Medicaid cases and 20 Children’s Health Insurance Program (CHIP) cases with MAGI determinations cited in part b. did not have case file documentation supporting the beneficiary eligibility determination. The Centers for Medicare and Medicaid Services (CMS) has determined that a reasonable compatibility indicator can be used for CMS audit purposes to determine if the attested income information was electronically verified for MAGI cases and MDHHS disagrees that documentation was not maintained to support the eligibility determination. The SOM MiIntegrate system communicates with various State and federal electronic trusted data sources and sends the information from these sources, along with the beneficiaries’ attested income, to the SOM MAGI Rules Engine where the MAGI eligibility determination is made. As part of the MAGI eligibility determination, a reasonable compatibility test is completed to determine if beneficiary/applicant attested income is within a specified percentage of the electronic trusted data sources or if the attested and verified income are below the threshold for the applicable program. The results of the MAGI eligibility determination are sent back to MiIntegrate using an Account Transfer (AT) packet that contains the results. MiIntegrate then communicates the results to the SOM MAGI Viewer and Bridges using an AT packet and Bridges stores the AT packet number only that can be used to view the details of the AT packet within the SOM MAGI Viewer. The version of the AT packet within the MAGI Viewer also contains a reasonable compatibility indicator that documents the outcome of the reasonable compatibility test and supports the SOM MAGI Rules Engine eligibility decision. MDHHS stores the AT packet information, including facts essential to the eligibility determination, within MiIntegrate and the MAGI Viewer instead of Bridges to help protect and secure the federal income tax data and unemployment data used for the determination. The AT packet for each individual determination can be retrieved from the MAGI Viewer using the AT packet number stored in each beneficiary’s case file within Bridges. MDHHS is not aware of any federal regulations that preclude MDHHS from storing this information in a separate system to help secure the data and restrict access as required by federal and state law. Planned Corrective Action To address the exceptions identified that are not related to MAGI-based income verification results, MDHHS has developed mandatory training protocols for eligibility workers and expects to have the first Medicaid audit focused mandatory training implemented by July 2025. MDHHS will continue to determine where additional training or enhancements to training are needed to ensure eligibility is accurately determined and documentation is properly maintained within the electronic case file. MDHHS disagrees it did not maintain case file documentation that supports the beneficiary eligibility determination for MAGI cases and does not intend to take further action. Anticipated Completion Date MDHHS will implement the first Medicaid audit focused training by July 2025. Responsible Individual(s) Logan Dreasky, MDHHS Mariah Schaefer, MDHHS

View Audit 360209 Questioned Costs: $1

Finding 567756 (2024-011)

Significant Deficiency 2024

State of Michigan

MI

Subrecipient Monitoring Reporting

Finding 2024-011 MDHHS - FFATA Reporting Management Views MDHHS agrees with the finding. Planned Corrective Action The MDHHS Bureau of Grants and Purchasing followed up with the subrecipients regarding unique entity identifier (UEI) account issues in the System for Award Management (SAM) and once ...

Finding 2024-011 MDHHS - FFATA Reporting Management Views MDHHS agrees with the finding. Planned Corrective Action The MDHHS Bureau of Grants and Purchasing followed up with the subrecipients regarding unique entity identifier (UEI) account issues in the System for Award Management (SAM) and once the issues were resolved, the subaward information was submitted. The MDHHS Federal Reporting Section will continue to help ensure the accuracy of the department’s Grants Received Report that is used by the MDHHS Bureau of Grants and Purchasing to report information in SAM. All data elements required to comply with federal funding requirements, such as the Federal Funding Accountability and Transparency Act (FFATA), have been added to the Grants Received Report. The MDHHS Federal Reporting Section will work with the MDHHS Bureau of Grants and Purchasing to develop a more comprehensive process to identify missing data that has not yet been communicated from the federal awarding agency, program area, or others. In the event data elements are missing from the report, the MDHHS Federal Reporting Section will follow up with the awarding agency, program area, or others to update the missing data elements within 30 days of receipt of the award. The MDHHS Bureau of Budget will confirm that a Program Period Code is included on the request form provided by the program office prior to the entry of grant agreements in the Electronic Grants Administration and Management System (EGrAMS). When reviewing grant agreements in EGrAMS, the MDHHS Bureau of Budget will confirm that pertinent coding elements are included prior to approval. In addition, the MDHHS Bureau of Budget will identify EGrAMS agreements with accounting templates that are not initially coded to federal funding, but contain a program code or task code that subsequently splits costs to a federal funding code, and work with the MDHHS Bureau of Grants and Purchasing to help ensure these agreements are included in the query used to obtain data for FFATA reporting. Anticipated Completion Date September 30, 2025 Responsible Individual(s) Jeanette Hensler, MDHHS Rebecca Jones, MDHHS Erik Eklund, MDHHS

View Audit 360209

Finding 567727 (2024-036)

Significant Deficiency 2024

State of Michigan

MI

Subrecipient Monitoring

Finding 2024-036 CCDF Cluster, ALN 93.575 and 93.596 - Subaward Information Management Views MiLEAP agrees with the finding. Planned Corrective Action MiLEAP is finalizing grant procedures for reviewing award documents, which will include utilizing a new grant template to help ensure all requireme...

Finding 2024-036 CCDF Cluster, ALN 93.575 and 93.596 - Subaward Information Management Views MiLEAP agrees with the finding. Planned Corrective Action MiLEAP is finalizing grant procedures for reviewing award documents, which will include utilizing a new grant template to help ensure all requirements are included on each award. Anticipated Completion Date July 1, 2025 Responsible Individual(s) Lisa Brewer-Walraven, MiLEAP Brandon Colby, MiLEAP

View Audit 360209

Finding 567726 (2024-035)

Material Weakness 2024

State of Michigan

MI

Subrecipient Monitoring Material Weakness Reporting

Finding 2024-035 CCDF Cluster, ALN 93.575 and 93.596 - FFATA Reporting Management Views MiLEAP and MDE agree with the finding. Planned Corrective Action MiLEAP will implement a process to ensure it submits subaward information as required by FFATA and federal guidance. Anticipated Completion Da...

Finding 2024-035 CCDF Cluster, ALN 93.575 and 93.596 - FFATA Reporting Management Views MiLEAP and MDE agree with the finding. Planned Corrective Action MiLEAP will implement a process to ensure it submits subaward information as required by FFATA and federal guidance. Anticipated Completion Date September 2025 Responsible Individual(s) Lora MacKay, MiLEAP

View Audit 360209

Finding 567716 (2024-031)

Significant Deficiency 2024

State of Michigan

MI

Subrecipient Monitoring § 200.332

Finding 2024-031 Twenty-First Century Community Learning Centers, ALN 84.287 - Program Fiscal Reviews Management Views The Michigan Department of Lifelong Education, Advancement, and Potential (MiLEAP) agrees with the finding. Planned Corrective Action In January 2025, MiLEAP assigned an auditor t...

Finding 2024-031 Twenty-First Century Community Learning Centers, ALN 84.287 - Program Fiscal Reviews Management Views The Michigan Department of Lifelong Education, Advancement, and Potential (MiLEAP) agrees with the finding. Planned Corrective Action In January 2025, MiLEAP assigned an auditor to conduct fiscal reviews to monitor activities of subrecipients of the Twenty-First Century Community Learning Centers program. Anticipated Completion Date Completed Responsible Individual(s) Lora MacKay, MiLEAP

View Audit 360209

Finding 567706 (2024-030)

Significant Deficiency 2024

State of Michigan

MI

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting § 200.302

Finding 2024-030 Rehabilitation Services Vocational Rehabilitation Grants to States, ALN 84.126 - Accuracy of Financial Reports Management Views LEO agrees with the finding. Planned Corrective Action The LEO Finance Division will implement the following: 1. Improvements to documented procedures f...

Finding 2024-030 Rehabilitation Services Vocational Rehabilitation Grants to States, ALN 84.126 - Accuracy of Financial Reports Management Views LEO agrees with the finding. Planned Corrective Action The LEO Finance Division will implement the following: 1. Improvements to documented procedures for the Vocational Rehabilitation Financial Report (RSA-17) preparation to ensure consistency and accuracy of financial report submissions. 2. Specific RSA-17 training for applicable staff and management in order to enhance knowledge of reporting requirements. 3. An additional layer of management review on RSA-17 financial reports prior to submission. Anticipated Completion Date September 30, 2025 Responsible Individual(s) Heidi Parker, LEO Chris Johnson, LEO

View Audit 360209

Finding 567704 (2024-029)

Significant Deficiency 2024

State of Michigan

MI

Subrecipient Monitoring § 200.332

Finding 2024-029 Adult Education - Basic Grants to States, ALN 84.002 - During-the-Award Monitoring and Subaward Information Management Views LEO agrees with the finding. Planned Corrective Action For part a., the Adult Education - Basic Grants to States program (Adult Education) Workforce Innovat...

Finding 2024-029 Adult Education - Basic Grants to States, ALN 84.002 - During-the-Award Monitoring and Subaward Information Management Views LEO agrees with the finding. Planned Corrective Action For part a., the Adult Education - Basic Grants to States program (Adult Education) Workforce Innovation and Opportunity Act Regional Coordinators and Financial Specialist are currently finishing the review of the final narrative reports and final expenditure reports for each of the 92 subrecipients. These reviews will be completed by June 30, 2025. Other Adult Education staff will be cross trained to assist in the review process in case there are competing priorities in the future. For part b., once it was determined that the FAIN was incorrect on the Grant Award Notification (GAN), staff corrected the FAIN in NexSys and worked with the NexSys programmers to have the GANs reissued on April 8, 2025. A communication to alert subrecipients of the update was sent on June 6, 2025. LEO also updated procedures to include multiple staff reviews of the GAN information to ensure accuracy before the GANs are released in NexSys. Anticipated Completion Date a. June 30, 2025 b. Completed Responsible Individual(s) Erica Luce, LEO Patty Higgins, LEO Brian Frazier, LEO Kari Hiner, LEO Sue Muzillo, LEO

View Audit 360209

Finding 567699 (2024-028)

Significant Deficiency 2024

State of Michigan

MI

Subrecipient Monitoring § 200.332 § 200.501 § 200.521

Finding 2024-028 Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027 - Subrecipient Audits Management Views For part a., LEO agrees with the finding. All three of MSF’s subrecipient awards for the fiscal year were sampled totaling approximately $274,000 (0.3 percent of the total award). ...

Finding 2024-028 Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027 - Subrecipient Audits Management Views For part a., LEO agrees with the finding. All three of MSF’s subrecipient awards for the fiscal year were sampled totaling approximately $274,000 (0.3 percent of the total award). While MSF agrees with the finding that it did not have a written process to verify single audit compliance, management believes that MSF’s risk assessment of subrecipients adequately determined that single audit verification was not required for two of its subrecipients since, based on all anticipated federal awards for the subrecipient, it was not expected that they would reach the expenditure threshold (2 CFR 200.332(f)). The third annually files a single audit, was expected to file a single audit, and did file a single audit. For part b., EGLE agrees with the finding. Planned Corrective Action For part a., the LEO Internal Controls Unit (LEO-IC) will expand LEO’s subrecipient monitoring function for the Coronavirus State and Local Fiscal Recovery Funds and update procedures to include sending an inquiry to subrecipients to determine whether they meet the requirements for a single audit, ensuring that audits are received and reviewed, and issuing management decision letters (when applicable). LEO-IC will train staff on the new procedures and is in the process of hiring another individual to assist with subrecipient monitoring. MSF completed its risk assessment in November 2024 and determined it necessary to update the existing process. On March 4, 2025, MSF implemented an updated process to notify subrecipients of single audit requirements and require feedback on the status of the funding. A Single Audit Certification letter is sent to all subrecipients via email and requires a response to whether a single audit would be required for the fiscal year. The response is then documented and MSF will review the single audits for all subrecipients for which an audit is required to be completed. For part b., the EGLE Budget unit within the Finance Division has assigned responsible staff and began reviewing single audits of applicable subrecipients for fiscal year 2024 activity and will be fully compliant for this subrecipient monitoring cycle and moving forward. Anticipated Completion Date a. LEO: August 31, 2025 MSF: Completed b. EGLE: Completed Responsible Individual(s) a. Christopher Blondell, LEO Allen Williams, LEO Gregory West, MSF Christine Whitz, MSF Lori Mullins, MSF David Meninga, MSF b. Jon Doyle, EGLE Daniel Lance, EGLE

View Audit 360209

Finding 567698 (2024-027)

Significant Deficiency 2024

State of Michigan

MI

Subrecipient Monitoring Internal Control / Segregation of Duties § 200.332

Finding 2024-027 Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027 - Subaward Information Management Views MDOT and LEO agree with parts a. and b. of the finding, respectively. For part c., the Michigan Strategic Fund (MSF) agrees that the subaward agreements did not specify whether th...

Finding 2024-027 Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027 - Subaward Information Management Views MDOT and LEO agree with parts a. and b. of the finding, respectively. For part c., the Michigan Strategic Fund (MSF) agrees that the subaward agreements did not specify whether the award was for research and development (R&D) purposes. The omission occurred because MSF does not administer awards intended to support R&D activities under this program; accordingly, this designation was not included in the grant agreement. MSF also agrees that the subaward agreements did not include an indirect cost rate. MSF did not fund indirect costs as part of this program; therefore, an indirect cost rate was not included in the grant agreement. Planned Corrective Action For part a., MDOT will incorporate into its current process all required subaward information to ensure it is reported to subrecipients, which will include, but not be limited to, UEI, Federal Award Identification Number (FAIN), federal award date, subaward period of performance start and end date, subaward budget period start and end date, federal awarding agency name, assistance listing number (ALN) title, identification of whether the award is for R&D, indirect cost rate for the federal award, an approved federally recognized indirect cost rate for the subrecipient, and the closeout terms and conditions. MDOT will also provide current subrecipients with the missing required subaward information. For part b., the LEO Prosperity Division will review records to identify all subrecipients that were previously provided with incorrect FAINs and will provide them with correct information. In addition, the LEO Prosperity Division will implement a procedural change to have a reviewer check to ensure that award information is accurately stated before grant issuance. For part c., to align with Uniform Guidance requirements (2 CFR 200.332(a)) all future agreements under the program will explicitly state that: 1) funding is not intended to support R&D activities; and 2) indirect costs are not eligible costs. All applicable current subrecipients will be notified of the same. Anticipated Completion Date a. September 30, 2025 b. July 31, 2025 c. July 31, 2025 Responsible Individual(s) a. Gina Huhn, MDOT Jean Ruestman, MDOT b. Denise Flannery, LEO c. Jay Williams, MSF Amy Rencher, MSF Gregory West, MSF Christine Whitz, MSF Christina Degrow, MSF

View Audit 360209

Finding 567697 (2024-026)

Significant Deficiency 2024

State of Michigan

MI

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties § 200.303

Finding 2024-026 Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027 - Workfront Security Management and Access Controls Management Views DTMB agrees with the finding. Planned Corrective Action DTMB implemented process improvements in May 2024 related to the tracking and documentation of...

Finding 2024-026 Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027 - Workfront Security Management and Access Controls Management Views DTMB agrees with the finding. Planned Corrective Action DTMB implemented process improvements in May 2024 related to the tracking and documentation of user access requests to support approval of user access and system roles. The exceptions cited are related to users whose access was granted prior to the improved documentation being implemented. Anticipated Completion Date Completed Responsible Individual(s) Jennifer Edmonds, DTMB

View Audit 360209

Finding 567696 (2024-025)

Significant Deficiency 2024

State of Michigan

MI

Allowable Costs / Cost Principles Subrecipient Monitoring Period of Performance § 200.303

Finding 2024-025 Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027 - Insufficient Respite Payment Controls Management Views MDHHS agrees with the finding. Planned Corrective Action During fiscal year 2024, MDHHS improved the payment review process prior to manual input into the Medic...

Finding 2024-025 Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027 - Insufficient Respite Payment Controls Management Views MDHHS agrees with the finding. Planned Corrective Action During fiscal year 2024, MDHHS improved the payment review process prior to manual input into the Medical Services Administration Manual Payment System (MSAPay) to help ensure there are no improper payments, as demonstrated by no improper payments identified for fiscal year 2024. MDHHS will develop and implement a post payment review process for the final respite payments that were entered into MSAPay during December 2024 and anticipates completion by September 30, 2025. Anticipated Completion Date September 30, 2025 Responsible Individual(s) Crystal Kline, MDHHS Jessica Bowen, MDHHS Elaina Brown, MDHHS

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Finding 567694 (2024-023)

Significant Deficiency 2024

State of Michigan

MI

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

Finding 2024-023 Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027 - PTMS Security Management and Access Controls Management Views MDOT agrees with the finding. Planned Corrective Action MDOT EIM and Office of Passenger Transportation will collaborate and provide oversight to ensure ...

Finding 2024-023 Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027 - PTMS Security Management and Access Controls Management Views MDOT agrees with the finding. Planned Corrective Action MDOT EIM and Office of Passenger Transportation will collaborate and provide oversight to ensure that Public Transportation Management System (PTMS) user access is reviewed semiannually for privileged accounts and annually for all other accounts. MDOT will implement an improved process which will include obtaining, verifying, and documenting the written approval for all identified users by the designated System Security Administrators. Access will be modified/removed, as appropriate, based on responses or removed for non-responders prior to the end of each six-month period for privileged users and each fiscal year for all other users. Anticipated Completion Date September 30, 2025 Responsible Individual(s) Sandy Lovell, MDOT Gina Huhn, MDOT Jean Ruestman, MDOT Kyle Nelson, MDOT Andy Esch, MDOT

View Audit 360209

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