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Finding: The Department of Health did not have adequate internal controls to ensure payments to subrecipients were allowable and met cost principles for the Epidemiology and Laboratory Capacity for Infectious Diseases program. Questioned Costs: Assistance Listing # 93.323 93.323 COVID-19 Amo...
Finding: The Department of Health did not have adequate internal controls to ensure payments to subrecipients were allowable and met cost principles for the Epidemiology and Laboratory Capacity for Infectious Diseases program. Questioned Costs: Assistance Listing # 93.323 93.323 COVID-19 Amount $2,037 Status: Corrective action not taken Corrective Action: The Department continues to disagree with the State Auditor’s Office (SAO) assessment of a material weakness in internal controls over the consolidated contract provider payment process. The Department partially agrees with the exceptions and questioned costs identified in the finding. The Department approved two payments that did not have the required supporting documentation for the subrecipients’ assigned risk level per agency policies, but maintains that these payments met federal cost principles for allowability as determined by staff review. Additionally, the program’s internal monitoring processes support the overall assurance of the allowability of payments. The program: • Maintains detailed budget information for each subrecipient by project area and, as A-19s are submitted, program and accounting staff update budget spreadsheets. When reviewing the support provided by the subrecipient, staff ensure amounts submitted by project are reasonable and align with expectations for the budget period. • Refers to the notice of funding opportunity, posted guidance, notice of award, as well as applicable federal regulations, to determine procedures related to allowable costs, purchases, and procurement. • Provides policy guidance, technical assistance, and training to subrecipients related to both allowability and compliance. • Continues to strengthen processes to ensure supporting documentation aligns with the Department’s documentation matrix for subrecipients in accordance with their assigned risk level. Additionally, the Department’s Fiscal Monitoring Unit provides technical assistance and training not only to program staff but also to the subrecipients while onsite and upon request as needed. The Department will consult with the grantor to determine whether the questioned costs identified in the finding should be repaid. The conditions noted in this finding were previously reported in findings 2023-046 and 2022-033. Completion Date: Not applicable Agency Contact: Jeff Arbuckle External Audit Manager PO Box 47890 Olympia, WA 98504-7890 (360) 701-0798 Jeff.Arbuckle@doh.wa.gov
View Audit 355165 Questioned Costs: $1
Finding: The Department of Health did not have adequate internal controls over cash management and allowable cost requirements for the Epidemiology and Laboratory Capacity for Infectious Diseases program. Questioned Costs: Assistance Listing # 93.323 93.323 COVID-19 Status: Corrective actio...
Finding: The Department of Health did not have adequate internal controls over cash management and allowable cost requirements for the Epidemiology and Laboratory Capacity for Infectious Diseases program. Questioned Costs: Assistance Listing # 93.323 93.323 COVID-19 Status: Corrective action in progress Corrective Action: The Department partially agrees with the finding. The Department agrees with the auditors’ assessment of inadequate internal controls to ensure automated draw calculations in the Grant Management System are accurate. The Department is working diligently with the Information Technology (IT) division to identify and correct cash draw report calculation errors until they are resolved. The Department has taken steps to ensure adequate internal controls over cash management and allowable cost requirements for the program, but disagrees with the auditors’ assessment of internal control weaknesses in the following areas: • Daily manual reconciliation - During the audit period, the Department identified a concern with the AFRS Data Distribution Services database reporting criteria. With the IT division’s assistance, the Department was able to identify the cause of the report errors and made corrections within the audit period. • Chart of account updates - The Department initially set up the coding structure based on the Office of Financial Management’s 23-25 biennium Expenditure Authority (EA) schedule. In October 2023, an updated EA schedule was released to correct one EA code. The Department addressed the coding error timely and processed a journal voucher to move recorded expenditures to the correct coding. • Cash Management Improvement Act (CMIA) - The Department spends on a first in, first out method and uses the previous year’s coding for all expenditures that occurred in the allowable period. The Department has controls in place to ensure cash draws are performed in line with the CMIA funding techniques and the payroll cycle. The Department will consult with the grantor to determine whether the questioned costs identified in the finding should be repaid. Completion Date: Estimated July 2025 Agency Contact: Jeff Arbuckle External Audit Manager PO Box 47890 Olympia, WA 98504-7890 (360) 701-0798 Jeff.Arbuckle@doh.wa.gov
View Audit 355165 Questioned Costs: $1
Finding: The Department of Health did not have adequate internal controls to ensure providers maintained immunization records, control, accountability and safeguarding of vaccines for the Immunization Cooperative Agreements Program. Questioned Costs: Assistance Listing # 93.268 93.268 COVID-...
Finding: The Department of Health did not have adequate internal controls to ensure providers maintained immunization records, control, accountability and safeguarding of vaccines for the Immunization Cooperative Agreements Program. Questioned Costs: Assistance Listing # 93.268 93.268 COVID-19 Amount $0 Status: Corrective action complete Corrective Action: The Department has already taken steps to evaluate current processes to ensure providers maintain immunization records, control, accountability and safeguarding of vaccines for the Immunization Program. As of July 2024, the program implemented a more automated process in the RedCap system to identify the vaccine doses administered outside the age range (DOAR) activities. This process enables adequate reviews and follow up with providers to be performed for the DOAR reports. As of November 2024, the site visit coordinator began the process of closely monitoring site visits due in one month and reaching out to the regional representatives to determine the status of scheduling site visits in order to minimize delays. The Department will continue to conduct monthly site visits and outreach and follow internal policies and procedures to meet DOAR reporting requirements. Completion Date: November 2024 Agency Contact: Jeff Arbuckle External Audit Manager PO Box 47890 Olympia, WA 98504-7890 (360) 701-0798 Jeff.Arbuckle@doh.wa.gov
Finding: The Department of Health did not have adequate internal controls to ensure it filed on-time reports required by the Federal Funding Accountability and Transparency Act for the Immunization Cooperative Agreements program. Questioned Costs: Assistance Listing # 93.268 93.268 COVID-19 ...
Finding: The Department of Health did not have adequate internal controls to ensure it filed on-time reports required by the Federal Funding Accountability and Transparency Act for the Immunization Cooperative Agreements program. Questioned Costs: Assistance Listing # 93.268 93.268 COVID-19 Amount $0 Status: Corrective action complete Corrective Action: The Department is committed to ensuring programs comply with federal regulations and will strengthen internal controls over the Federal Funding Accountability and Transparency Act (FFATA) reporting. In response to prior years’ audit findings, the Department updated internal procedures for collecting data from contracting activities. When a new contract is signed, the contracts distribution unit sends an email to the FFATA inbox to notify the grants office to review and determine if it is required to be reported for FFATA. The Department does not have a system to ensure contract account coding is available at the time a contract is executed. To ensure the grants office is informed timely of new contracts, the contract office has been instructed to provide the previous year’s funding source information when current account coding is not yet available. The Department also updated procedures to ensure documentation of management review and approval of FFATA reports are properly retained. Previously, approvals were communicated via TEAMS messages with only one-week retention. Currently, the FFATA reports are sent via email for review and approval. The reply email from the reviewer serves as supporting documentation of the existing control activities. The approval emails are saved in the FFATA folder on the network drive. The conditions noted in this finding were previously reported in findings 2023-045 and 2022-032. Completion Date: March 2025 Agency Contact: Jeff Arbuckle External Audit Manager PO Box 47890 Olympia, WA 98504-7890 (360) 701-0798 Jeff.Arbuckle@doh.wa.gov
Finding: The Department of Health did not have adequate internal controls over cash management and reporting requirements for the Immunization Cooperative Agreements program. Questioned Costs: Assistance Listing # 93.268 93.268 COVID-19 Amount $0 Status: Corrective action in progress Cor...
Finding: The Department of Health did not have adequate internal controls over cash management and reporting requirements for the Immunization Cooperative Agreements program. Questioned Costs: Assistance Listing # 93.268 93.268 COVID-19 Amount $0 Status: Corrective action in progress Corrective Action: The Department partially agrees with the finding. The Department agrees with the auditors’ assessment of inadequate internal controls to ensure automated draw calculations in the Grant Management System are accurate. The Department is working diligently with the Information Technology (IT) division to identify and correct cash draw report calculation errors until they are resolved. The Department has taken steps to ensure adequate internal controls over cash management and allowable cost requirements for the program, but disagrees with the auditors’ assessment of internal control weaknesses in the following areas: · Daily manual reconciliation - During the audit period, the Department identified a concern with the AFRS Data Distribution Services database reporting criteria. With the IT division’s assistance, the Department was able to identify the cause of the report errors and made corrections within the audit period. · Chart of account updates - The Department initially set up the coding structure based on the Office of Financial Management’s 23-25 biennium Expenditure Authority (EA) schedule. In October 2023, an updated EA schedule was released to correct one EA code. The Department addressed the coding error timely and processed a journal voucher to move recorded expenditures to the correct coding. Completion Date: Estimated July 2025 Agency Contact: Jeff Arbuckle External Audit Manager PO Box 47890 Olympia, WA 98504-7890 (360) 701-0798 Jeff.Arbuckle@doh.wa.gov
Finding: The Department of Health did not have adequate internal controls to ensure payments to subrecipients were allowable, met cost principles, and were within the period of performance for the Immunization Cooperative Agreements program. Questioned Costs: Assistance Listing # 93.268 93.2...
Finding: The Department of Health did not have adequate internal controls to ensure payments to subrecipients were allowable, met cost principles, and were within the period of performance for the Immunization Cooperative Agreements program. Questioned Costs: Assistance Listing # 93.268 93.268 COVID-19 Amount $464,473 Status: Corrective action complete Corrective Action: The Department partially agrees with the exceptions and questioned costs identified in the finding. The Department approved a payment with an incorrect indirect rate being applied which was subsequently identified by internal control processes and the overpayment was corrected during the audit period. The Department maintains that this should not be reported as an exception. Internal policies are held to a higher standard than federal requirements, and the level of documentation received from the subrecipients provided assurance that the payment in question met federal cost principles for allowability and period of performance at the time of review. Additionally, the program’s internal monitoring processes support the overall assurance of the allowability of payments. The program: • Maintains detailed budget information for each subrecipient by project area and, as A-19s are submitted, program and accounting staff update budget spreadsheets. When reviewing the support provided by the subrecipient, staff ensure amounts submitted by project are reasonable and align with expectations for the budget period. • Refers to the federal Immunization Program Operations Manual to determine procedures related to allowable costs, purchases, and procurement. • Provides policy guidance, technical assistance, and training to subrecipients related to both allowability and compliance. • Continues to strengthen processes to ensure supporting documentation aligns with the Department’s documentation matrix for subrecipients in accordance with their assigned risk level. Additionally, the Department’s Fiscal Monitoring Unit provides technical assistance and training, not only to program staff, but to the subrecipients while onsite and upon request as needed. The Department will consult with the grantor to determine whether the questioned costs identified in the finding should be repaid. The conditions noted in this finding were previously reported in findings 2023-044 and 2022-031. Completion Date: February 2025 Agency Contact: Jeff Arbuckle External Audit Manager PO Box 47890 Olympia, WA 98504-7890 (360) 701-0798 Jeff.Arbuckle@doh.wa.gov
View Audit 355165 Questioned Costs: $1
Finding: The Office of Superintendent of Public Instruction did not have adequate internal controls over and did not comply with federal activities allowed and subrecipient monitoring requirements for the Education Stabilization Fund program. Questioned Costs: Assistance Listing # 84.425R 84...
Finding: The Office of Superintendent of Public Instruction did not have adequate internal controls over and did not comply with federal activities allowed and subrecipient monitoring requirements for the Education Stabilization Fund program. Questioned Costs: Assistance Listing # 84.425R 84.425V Amount $47,322,280 Status: Corrective action complete Corrective Action: The Office distributed the remaining unobligated funds from the program to Local Education Agencies (LEAs) through the apportionment process to meet the legislative intent. Due to the nature of how the payments were calculated, the Office’s grants system could not be used for the distribution. When a grant is awarded through our grants system, an email notification is sent to the organization that contains the federal elements required in 2 CFR 200.332. Although the Office concurs that we did not provide a formal subaward document that included all of the elements since the funds were not distributed through our grants system, the LEA’s received other formal communication through a Gov Delivery email and the School District Accounting Manual that included most of these federal elements. Going forward, if the Office uses the apportionment process to distribute funds to LEAs, all the required federal elements in 2 CFR 200.332 will be included in a separate subaward. The Office’s communication to LEAs also included the allowable use of these funds. Therefore, the Office does not concur that the funds should be questioned as not being allowable or properly supported. Completion Date: February 2025 Agency Contact: TJ Kelly Chief Financial Officer P.O. Box 47200 Olympia, WA 98504-7200 (360) 725-6301 Thomas.Kelly@k12.wa.us
View Audit 355165 Questioned Costs: $1
Finding: The Workforce Training and Education Coordinating Board did not have adequate internal controls to ensure compliance with level of effort requirements for the Career and Technical Education – Basic Grants to States program. Questioned Costs: Assistance Listing # 84.048 Amount $0 S...
Finding: The Workforce Training and Education Coordinating Board did not have adequate internal controls to ensure compliance with level of effort requirements for the Career and Technical Education – Basic Grants to States program. Questioned Costs: Assistance Listing # 84.048 Amount $0 Status: Corrective action in progress Corrective Action: The Workforce Board, in coordination with its partnered agencies, will develop written policies and procedures to document the monitoring process of level of effort requirements. The State Board for Community and Technical Colleges already has a document to submit semi-annual reports which the Workforce Board will utilize as a template to establish guidelines related to the level of effort reporting requirements. The Workforce Board will work on strengthening preventative controls to effectively monitor the level of effort requirements on a more continuous basis. Additionally, the Workforce Board will add language to all interagency agreements regarding the level of effort semi-annual reporting requirement and the certification that federal funds were used to supplement, not supplant, non-federal funds specific to the level of effort requirement. Completion Date: Estimated July 2025 Agency Contact: Lisa Engelhart Chief Financial Officer PO Box 43105 Olympia, WA 98504-3105 (360) 709-4620 lisa.engelhart@wtb.wa.gov
Finding: The Workforce Training and Education Coordinating Board did not have adequate internal controls over matching requirements for the Career and Technical Education – Basic Grants to States program. Questioned Costs: Assistance Listing # 84.048 Status: Corrective action complete Cor...
Finding: The Workforce Training and Education Coordinating Board did not have adequate internal controls over matching requirements for the Career and Technical Education – Basic Grants to States program. Questioned Costs: Assistance Listing # 84.048 Status: Corrective action complete Corrective Action: The Workforce Board has internal controls to ensure the state meets the matching requirements of federal administrative expenditures. The Board will continue to work with the Office of Superintendent of Public Instruction (OSPI) to: • Ensure the required certification is submitted each year as specified in the interagency contract. • Obtain additional support with their quarterly billings. Additionally, the Board has incorporated a monitoring section into the new contracts with OSPI and the State Board for Community and Technical Colleges to enhance oversight and ensure compliance with federal matching requirements. Completion Date: January 2025 Agency Contact: Lisa Engelhart Chief Financial Officer PO Box 43105 Olympia, WA 98504-3105 (360) 709-4620 Lisa.engelhart@wtb.wa.gov
Finding: The Department of Commerce did not have adequate internal controls over and did not comply with federal requirements to ensure subrecipients of the Coronavirus State and Local Fiscal Recovery Funds received required single or program-specific audits, and that it appropriately followed up o...
Finding: The Department of Commerce did not have adequate internal controls over and did not comply with federal requirements to ensure subrecipients of the Coronavirus State and Local Fiscal Recovery Funds received required single or program-specific audits, and that it appropriately followed up on findings and issued management decisions. Questioned Costs: Assistance Listing # 21.027 COVID-19 Amount $0 Status: Corrective action in progress Corrective Action: The Department has strong internal controls over monitoring subrecipient audit report submission and verification processes. Since the Department does not have a centralized information system which identifies all subrecipients needing an audit submission verification, several methods were used to identify applicable subrecipients. In October 2024, the Department’s Internal Control Office hired two additional staff, one dedicated to ensuring the requirements in 2 CFR 200.501 are followed, including the review of subrecipients’ single audit report submissions and timely issuance of management decision letters. The Department will continue to strengthen internal controls to ensure compliance with all subrecipient monitoring requirements: • Work with leadership and the Central Contracts Office to determine options to identify all subrecipients who meet single audit reporting thresholds. • Work with program management to obtain full lists of federal subrecipients, conduct outreach for subrecipients who have not met the audit reporting deadline and document non-compliant and non-responsive subrecipients. • Establish a streamlined, documented process to ensure compliance with all monitoring and management decision requirements. Completion Date: Estimated October 2025 Agency Contact: Gena Allen, CFE Internal Control Officer PO Box 42525 Olympia, WA 98504-2525 (360) 480-5149 Gena.Allen@Commerce.wa.gov
Finding: The Department of Commerce did not have adequate internal controls over and did not comply with requirements to perform risk assessments for subrecipients of the Coronavirus State and Local Fiscal Recovery Funds. Questioned Costs: Assistance Listing # 21.027 COVID-19 Amount $0 Sta...
Finding: The Department of Commerce did not have adequate internal controls over and did not comply with requirements to perform risk assessments for subrecipients of the Coronavirus State and Local Fiscal Recovery Funds. Questioned Costs: Assistance Listing # 21.027 COVID-19 Amount $0 Status: Corrective action in progress Corrective Action: The Department maintains that there are effective internal controls over programs that are funded by the Coronavirus State and Local Fiscal Recovery Funds. The federal programs included in this audit had completed risk assessment procedures in compliance with federal requirements. Due to delayed audit planning and scoping, the auditors were unable to perform procedures to ascertain whether the Department established and followed internal controls to ensure compliance with program requirements. The Department plans to ensure sufficient time and resources are available for all future audits by performing the following steps: • Performing outreach to all federal programs to document internal controls for all applicable compliance requirements before the start of the next single audit cycle. • Working with the State Auditor’s Office earlier in the audit cycle to identify the audit scope for selected programs. • Providing support and guidance to programs selected for audit to ensure compliance with all internal controls and compliance requirements. To strengthen controls over performing risk assessments for subrecipients, the Department will review procedures with program staff and verify processes are followed when required. The conditions noted in this finding were previously reported in findings 2023-031 and 2022-021. Completion Date: Estimated August 2025 Agency Contact: Gena Allen, CFE Internal Control Officer PO Box 42525 Olympia, WA 98504-2525 (360) 480-5149 Gena.Allen@Commerce.wa.gov
Finding: The Department of Commerce did not have adequate internal controls to ensure compliance with suspension and debarment requirements for the Coronavirus State and Local Fiscal Recovery Funds. Questioned Costs: Assistance Listing # 21.027 COVID-19 Status: Corrective action in progress...
Finding: The Department of Commerce did not have adequate internal controls to ensure compliance with suspension and debarment requirements for the Coronavirus State and Local Fiscal Recovery Funds. Questioned Costs: Assistance Listing # 21.027 COVID-19 Status: Corrective action in progress Corrective Action: The Department maintains that there are effective internal controls over programs that are funded by the Coronavirus State and Local Fiscal Recovery Funds. The Department’s contract templates include the required suspension and debarment language, which is in compliance with the federal regulations. Due to delayed audit planning and scoping, the auditors were unable to perform procedures to ascertain whether the Department established and followed internal controls to ensure compliance with program requirements. To address the internal control concerns reported, the Department plans to ensure sufficient time and resources are available for all future audits by performing the following steps: • Performing outreach to all federal programs to document internal controls for all applicable compliance requirements before the start of the next single audit cycle. • Working with the State Auditor’s Office earlier in the audit cycle to identify the audit scope for selected programs. • Providing support and guidance to programs selected for audit to ensure compliance with all internal controls and compliance requirements. Completion Date: Estimated August 2025 Agency Contact: Gena Allen, CFE Internal Control Officer PO Box 42525 Olympia, WA 98504-2525 (360) 480-5149 Gena.Allen@Commerce.wa.gov
Finding: The Department of Commerce did not have adequate internal controls to ensure payments to subrecipients were allowable, properly supported and met period of performance requirements for the Coronavirus State and Local Fiscal Recovery Funds. Questioned Costs: Assistance Listing # 21.0...
Finding: The Department of Commerce did not have adequate internal controls to ensure payments to subrecipients were allowable, properly supported and met period of performance requirements for the Coronavirus State and Local Fiscal Recovery Funds. Questioned Costs: Assistance Listing # 21.027 COVID-19 Amount $0 Status: Corrective action in progress Corrective Action: The Department maintains that there are effective internal controls over programs that are funded by the Coronavirus State and Local Fiscal Recovery Funds. Due to delayed audit planning and scoping, the auditors were unable to perform procedures to ascertain whether the Department established and followed internal controls to ensure compliance with program requirements. The Department plans to ensure sufficient time and resources are available for all future audits by performing the following steps: • Performing outreach to all federal programs to document internal controls for all applicable compliance requirements before the start of the next single audit cycle. • Working with the State Auditor’s Office earlier in the audit cycle to identify the audit scope for selected programs. • Providing support and guidance to programs selected for audit to ensure compliance with all internal controls and compliance requirements. The conditions noted in this finding were previously reported in findings 2023-027, 2023-028, and 2022-019. Completion Date: Estimated August 2025 Agency Contact: Gena Allen, CFE Internal Control Officer PO Box 42525 Olympia, WA 98504-2525 (360) 480-5149 Gena.Allen@Commerce.wa.gov
Finding: The Housing Finance Commission did not have adequate internal controls over and did not comply with reporting requirements for the Homeowner Assistance Fund program. Questioned Costs: Assistance Listing # 21.026 COVID-19 Amount $0 Status: Corrective action complete Corrective Ac...
Finding: The Housing Finance Commission did not have adequate internal controls over and did not comply with reporting requirements for the Homeowner Assistance Fund program. Questioned Costs: Assistance Listing # 21.026 COVID-19 Amount $0 Status: Corrective action complete Corrective Action: To address the deficiencies identified by the auditors in completing quarterly performance reports, the Commission has taken the following corrective actions to strengthen controls over reporting for the Homeowner Assistance Fund (HAF) program: • Updated procedures to require: o Homeownership Division and Finance Division staff to perform regular reconciliation of records to identify any discrepancies and to ensure all records are complete and accurate. o Supporting data obtained for reporting be vetted by the contractor and the Homeownership Division staff. o Leadership (division manager or above) to perform final review of data as well as the quarterly or annual report prior to submission to the grantor. • Designated the records maintained by the Finance Division, specifically the general ledgers, as the source of financial data for the quarterly and annual reports for the Washington HAF program. • Required third parties to develop or update a program manual regarding data used for reporting purposes. The manual incorporated recommendations of the audit finding. As of June 30, 2024, the Commission consulted with the U.S. Department of the Treasury to determine if revision and resubmission of the reports are necessary to correct amounts reported. No corrective action was required. The conditions noted in this finding were previously reported in finding 2023-024. Completion Date: June 2024 Agency Contact: Lucas Loranger Senior Finance Director 1000 Second Ave, Suite 2700 Seattle, WA 98104-3601 (206) 464-7139 Lucas.Loranger@wshfc.org
Finding: The Housing Finance Commission did not have adequate internal controls over reporting requirements for the Homeowner Assistance Fund program. Questioned Costs: Assistance Listing # 21.026 COVID-19 Amount $0 Status: Corrective action complete Corrective Action: To address the de...
Finding: The Housing Finance Commission did not have adequate internal controls over reporting requirements for the Homeowner Assistance Fund program. Questioned Costs: Assistance Listing # 21.026 COVID-19 Amount $0 Status: Corrective action complete Corrective Action: To address the deficiencies identified by the auditors in completing annual performance reports, the Commission has taken the following corrective actions to strengthen controls over reporting for the Homeowner Assistance Fund (HAF) program: • Updated procedures to require: o Homeownership Division and Finance Division staff to perform regular reconciliation of records to identify any discrepancies and to ensure all records are complete and accurate. o Supporting data obtained for reporting be vetted by the contractor and the Homeownership Division staff. o Leadership (division manager or above) to perform final review of data as well as the quarterly or annual report prior to submission to the grantor. • Designated the records maintained by the Finance Division, specifically the general ledgers, as the source of financial data for the quarterly and annual reports for the Washington HAF program. • Required third parties to develop or update a program manual regarding data used for reporting purposes. The manual incorporated recommendations of the audit finding. As of June 30, 2024, the Commission consulted with the U.S. Department of the Treasury to determine if revision and resubmission of the reports are necessary to correct amounts reported. No corrective action was required. The conditions noted in this finding were previously reported in finding 2023-025. Completion Date: June 2024 Agency Contact: Lucas Loranger Senior Finance Director 1000 Second Ave, Suite 2700 Seattle, WA 98104-3601 (206) 464-7139 Lucas.Loranger@wshfc.org
Finding: The Housing Finance Commission did not have adequate internal controls over earmarking requirements for the Homeowner Assistance Fund program. Questioned Costs: Assistance Listing # 21.026 COVID-19 Amount $0 Status: Corrective action complete Corrective Action: The Commission h...
Finding: The Housing Finance Commission did not have adequate internal controls over earmarking requirements for the Homeowner Assistance Fund program. Questioned Costs: Assistance Listing # 21.026 COVID-19 Amount $0 Status: Corrective action complete Corrective Action: The Commission has taken the following corrective actions to strengthen controls over earmarking requirements for the Homeowner Assistance Fund (HAF) program: • Developed a system to track and monitor expenditures in relation to overall program expenditures to ensure earmarking requirements are within allowable parameters. • Selected an increased percentage of approved, denied, and withdrawn HAF applications that have previously been reviewed by the contractor, as part of the Quality Control process, for a secondary review by program staff. • Reviewed a selection of HAF applications independent of the Quality Control process performed by the contractor. • Reviewed a selection of approved HAF applications prior to disbursing funds to confirm eligibility determinations are proper. The conditions noted in this finding were previously reported in finding 2023-023. Completion Date: October 2024 Agency Contact: Lucas Loranger Senior Finance Director 1000 Second Ave, Suite 2700 Seattle, WA 98104-3601 (206) 464-7139 Lucas.Loranger@wshfc.org
Finding: The Housing Finance Commission did not have adequate internal controls over eligibility requirements for the Homeowner Assistance Fund program. Questioned Costs: Assistance Listing # 21.026 COVID-19 Amount $0 Status: Corrective action complete Corrective Action: The Commission ...
Finding: The Housing Finance Commission did not have adequate internal controls over eligibility requirements for the Homeowner Assistance Fund program. Questioned Costs: Assistance Listing # 21.026 COVID-19 Amount $0 Status: Corrective action complete Corrective Action: The Commission has taken the following corrective actions to strengthen controls over eligibility requirements for the Homeowner Assistance Fund (HAF) program: • Selected an increased percentage of approved, denied, and withdrawn HAF applications that have previously been reviewed by the contractor, as part of the Quality Control process, for a secondary review by program staff. • Reviewed a selection of HAF applications independent of the Quality Control process performed by the contractor. • Reviewed 100% of approved HAF applications prior to disbursing funds to confirm eligibility determinations are proper. The conditions noted in this finding were previously reported in finding 2023-022. Completion Date: June 2024 Agency Contact: Lucas Loranger Senior Finance Director 1000 Second Ave, Suite 2700 Seattle, WA 98104-3601 (206) 464-7139 Lucas.Loranger@wshfc.org
Finding: The Washington State Department of Transportation did not have adequate internal controls over and did not comply with quality assurance program requirements to ensure materials conformed to approved plans and specifications, and that only qualified personnel performed testing for projects...
Finding: The Washington State Department of Transportation did not have adequate internal controls over and did not comply with quality assurance program requirements to ensure materials conformed to approved plans and specifications, and that only qualified personnel performed testing for projects funded by the Highway Planning and Construction program. Questioned Costs: Assistance Listing # 20.205 Amount $0 Status: Corrective action in progress Corrective Action: The Department is committed to ensuring that our grant programs comply with federal regulations related to quality assurance (QA) requirements and safeguarding that materials and workmanship conform to approved plans and specifications through testing, inspections, or certifications. The Department has worked closely with the Federal Highway Administration (FHWA) on our QA program and continues to receive feedback on the strength of our program. As indicated in the prior year’s corrective action plan concerning a similar issue, the Department has been working towards replacing the Record of Materials (ROM) legacy system. Therefore, it was not practical to modify the system to help correct issues previously reported in the fiscal year (FY) 2022 and 2023 audits. During FY 2023, the Department eliminated the practice requiring updates to the ROM within 30 days of payment and instead relied on the required documentation as evidence of proper materials acceptance. The FY 2024 audit identified only two out of 58 materials tests that were either not documented properly or the required test was not performed. In January 2023, as a result of recommendations from the FY 2022 audit, the Department modified its practice related to how tester data is reviewed and entered into the tester certification tracking system. All offices now funnel tester data to the Headquarters Quality Systems Section for review and entry. These procedure changes were communicated to appropriate staff and are reflected in the Construction Manual, which was reviewed and approved by FHWA. The Department is assessing the replacement of additional software legacy programs associated with the QA program. Due to the timing of the implementation, these changes were not fully reflected in the current year’s audit for the auditors to perform control testing. Nevertheless, only four out of 57 testers were found to have certification issues during the FY 2024 audit. The Department will continue to improve the QA program while waiting for the new software programs to be fully developed. To address the audit recommendations, the Department’s Construction Division will examine current policies and procedures/practices related to the audit issues. The Department will: • Communicate with the FHWA to discuss the audit’s recommendations and any changes required to be compliant with federal requirements. • Provide training to Project Engineering Office staff to emphasize QA program requirements, the FY 2024 finding, and audit exceptions. • Update policies and procedures as needed from discussions and training above. • Obtain approval of updates to the Construction Manual from the FHWA, if needed. • Communicate changes in policies and procedures to division staff and stakeholders. The conditions noted in this finding were previously reported in findings 2023-014, 2022-011, 2021-011, 2020-017, and 2019-019. Completion Date: Estimated June 2025 Agency Contact: Jesse Daniels External Audit Liaison PO Box 47320 Olympia, WA 98504-7320 (360) 705-7035 danielje@wsdot.wa.gov
Finding: The Washington State Department of Transportation did not have adequate internal controls over and did not comply with requirements to collect certified payrolls from contractors on projects funded by the Highway Planning and Construction program. Questioned Costs: Assistance Listing # ...
Finding: The Washington State Department of Transportation did not have adequate internal controls over and did not comply with requirements to collect certified payrolls from contractors on projects funded by the Highway Planning and Construction program. Questioned Costs: Assistance Listing # 20.205 Amount $0 Status: Corrective action in progress Corrective Action: In July 2020 and November 2024, the Department received management decision letters from the Federal Highway Administration (FHWA) in response to similar findings for the fiscal years 2018, 2019, and 2023, respectively, which stated: • FHWA approved the Department’s Construction Manual and Standard Specifications and confirmed that documented procedures contain the necessary controls to ensure reasonable compliance with 29 CFR 5.5 and the Davis-Bacon and Related Acts. • FHWA agreed that current processes in place are reasonable and satisfy the intent of the Department of Labor’s certified payroll requirements. • Ensuring all certified payrolls are collected, and considering sanctions or other appropriate actions for missing payrolls using the methods outlined in WSDOT’s procedures provide sufficient internal control and reasonable compliance, notwithstanding the collection of the payrolls within a seven-day period. • FHWA considers this finding to be resolved. The Department continues to strive for improvements in this area. To further address the prior year’s audit recommendations, the Department took actions to update the Construction Manual, which was approved by FHWA and released in February 2025. This includes: • Updated language for certified payroll collection requirements when no work is performed on federal projects. • Clarified the authority to withhold payments regarding federal wage administration. • Standardized the required frequency of checking for certified payroll collection and the methods to document tracking. • Defined “timely,” given the circumstances surrounding weekly collection of certified payrolls and sanctions on a monthly pay estimate, including: o The timeline when the Department must communicate overdue certified payroll to the contractor and the allowable methods of that communication. o The timeline for determining when the Department must consider imposing sanctions on the contractor after a certified payroll is overdue. o The minimum required documentation that sanctions (e.g., partial deferral of payment) were considered against the contractor regarding an overdue certified payroll. The Department discussed the updates to the Construction Manual and the audit findings at the statewide Documentation Engineering meeting, which was held in February 2025. Additionally, the Department will: • Release the Construction Bulletin to include highlights on the updates in the Construction Manual. • Share the details of the audit testing and exceptions with the Regional Documentation Engineers. The conditions noted in this finding were previously reported in finding 2023-013. Estimated June 2025 Jesse Daniels External Audit Liaison PO Box 47320 Olympia, WA 98504-7320 (360) 705-7035 danielje@wsdot.wa.gov
Finding: The Washington State Department of Transportation did not have adequate internal controls over and did not comply with requirements to perform risk assessments for subrecipients of the Highway Planning and Construction program. Questioned Costs: Assistance Listing # 20.205 Amount $0 ...
Finding: The Washington State Department of Transportation did not have adequate internal controls over and did not comply with requirements to perform risk assessments for subrecipients of the Highway Planning and Construction program. Questioned Costs: Assistance Listing # 20.205 Amount $0 Status: Corrective action in progress Corrective Action: The Washington State Department of Transportation (WSDOT) is committed to ensuring our grant programs comply with federal regulations regarding required risk assessments. Risk assessments for subrecipients under the Federal Highway Administration grant programs are the responsibility of WSDOT’s Regional Local Programs Engineers, located in the six WSDOT regions. The Department has attempted to complete a risk assessment at each phase of a project, however, staff turnover contributed to the lack of consistency and timeliness in completing these assessments. To help ensure consistency, the Department has updated position descriptions for Local Programs Engineers to reflect this requirement. The Department will: • Ensure audit findings and exceptions are shared with responsible staff and regional management. • Communicate with Regional Local Programs Engineers to ensure risk assessments are performed and properly documented in accordance with the risk assessment program guidelines. • Communicate with regional management to ensure required monitoring activities by staff are tracked, and the status of these activities are reported as part of annual performance evaluations. Communication with Regional Local Programs Engineers and regional management will continue to be on-going. The conditions noted in this finding were previously reported in finding 2023-012. Completion Date: Estimated June 2025 Agency Contact: Jesse Daniels External Audit Liaison PO Box 47320 Olympia, WA 98504-7320 (360) 705-7035 danielje@wsdot.wa.gov
Finding: The Washington State Department of Transportation did not have adequate internal controls over and did not comply with federal requirements for suspension and debarment and wage rate notification. Questioned Costs: Assistance Listing # 20.205 Amount $0 Status: Corrective action co...
Finding: The Washington State Department of Transportation did not have adequate internal controls over and did not comply with federal requirements for suspension and debarment and wage rate notification. Questioned Costs: Assistance Listing # 20.205 Amount $0 Status: Corrective action complete Corrective Action: The Department is committed to ensuring our programs comply with federal regulations related to procurement, suspension, and debarment. The Department has policies and procedures in place, approved by the Federal Highway Administration (FHWA), to ensure all federally funded construction contracts have the necessary elements to meet both state and federal requirements. The Department provided clear guidance to teams to ensure Form FHWA-1273 Required Contract Provisions Federal-Aid Construction Contracts is included in all contracts. It was simply a mistake that Form 1273 was left out of the contract in question. In this case, the contract documents were some 1,200 pages and the inclusion of this form in an appendix was overlooked by the project team. As a result of various other checks and balances in place, the Department subsequently discovered the oversight and a change order was executed on July 18, 2024, to include the form. This was completed before any contract work commenced and prior to audit work beginning for the program. For added assurance, all contracts include language that requires the contractor to meet the various requirements associated with Form FHWA-1273, whether the form is included in the contract or not. The Department had follow-up conversations with appropriate staff to ensure all contracts awarded contain the required elements. Completion Date: February 2025 Agency Contact: Jesse Daniels External Audit Liaison PO Box 47320 Olympia, WA 98504-7320 (360) 705-7035 danielje@wsdot.wa.gov
Finding: The Employment Security Department did not have adequate internal controls over and did not comply with requirements to ensure it profiled all claimants under the Unemployment Insurance program to identify people likely to need reemployment services and ensure staff providing those service...
Finding: The Employment Security Department did not have adequate internal controls over and did not comply with requirements to ensure it profiled all claimants under the Unemployment Insurance program to identify people likely to need reemployment services and ensure staff providing those services received required training. Questioned Costs: Assistance Listing # 17.225 17.225 COVID-19 Amount $0 Status: Corrective action in progress Corrective Action: The Department concurs with the audit recommendation to review the Worker Profiling and Reemployment Services calculation of the profile score within the Unemployment Tax and Benefit (UTAB) system. In response to the prior year’s finding, the Department began investigating the process of the score calculation in October 2024. The Department is also examining resource allocation to more effectively validate the profile score and ensure that coefficient values are correctly determined and assigned by the UTAB system. The Department partially concurs with the recommendation to reconcile the UTAB and Reemployment Appointment Scheduler (RAS) interface. There is currently a process in place to notify the RAS team if a record fails at the time of data transmission between UTAB and RAS. The Department will review its processes to verify the complete UTAB exit file was successfully received by RAS. The Department partially concurs with the recommendation to ensure staff have completed the required training before providing services to claimants. The Department currently monitors local offices to ensure staff have taken the required training to be able to provide reemployment screening services to claimants. The exception cited in the finding was due to one staff out of 277 who missed the refresher training during fiscal year 2024. The Department will continue to monitor local staff training to ensure compliance. The conditions noted in this finding were previously reported in finding 2023-010. Completion Date: Estimated May 2025 Agency Contact: Jay Summers  External Audit Manager   PO Box 9046   Olympia, WA 98507-9046  (360) 529-6718  Joshua.Summers@esd.wa.gov
Finding: The Employment Security Department did not have adequate internal controls to ensure compliance with federal requirements to annually certify that employer tax credits reported under the Federal Unemployment Tax Act are matched against employer contributions paid under the Unemployment Ins...
Finding: The Employment Security Department did not have adequate internal controls to ensure compliance with federal requirements to annually certify that employer tax credits reported under the Federal Unemployment Tax Act are matched against employer contributions paid under the Unemployment Insurance program. Questioned Costs: Assistance Listing # 17.225 17.225 COVID-19 Amount $0 Status: Corrective action complete Corrective Action: The Department is committed to ensuring that the required reports for the Federal Unemployment Tax Act are properly reviewed and in compliance with federal requirements. The Department has a process in place for a secondary review of the employer tax credit reports prior to certification. The two exceptions identified in the audit were isolated incidents where both the preparer and reviewer missed one of the 50 lines on the two reports being reviewed. The Department will ensure management adequately reviews employer account reconciliations performed by staff to ensure the required number of accounts are reviewed for all reports prior to submission. Completion Date: February 2025 Agency Contact: Jay Summers External Audit Manager PO Box 9046 Olympia, WA 98507-9046 (360) 529-6718 Joshua.Summers@esd.wa.gov
Finding: The Employment Security Department did not have adequate internal controls over and did not comply with federal requirements to conduct case reviews for the Benefit Accuracy Measurement program of the Unemployment Insurance program in a timely manner. Questioned Costs: Assistance Listin...
Finding: The Employment Security Department did not have adequate internal controls over and did not comply with federal requirements to conduct case reviews for the Benefit Accuracy Measurement program of the Unemployment Insurance program in a timely manner. Questioned Costs: Assistance Listing # 17.225 17.225 COVID-19 Amount $0 Status: Corrective action complete Corrective Action: The Department is committed to ensuring our Benefit Accuracy Measurement (BAM) program complies with federal regulations. Historically, the BAM unit has been challenged to maintain full levels of staffing. Staff turnover, lengthy training requirements, and unique skill sets make these positions difficult to maintain. The Department has implemented changes to position descriptions which have resulted in the hiring and retention of qualified staff. As a result, the unit has improved its case sampling timelines by implementing regular case reviews to ensure the 60-day, 90-day, and 120-day timelines are met. Additionally, the Department, in collaboration with the U.S. Department of Labor (USDOL), developed a State Quality Service Plan (SQSP) which includes metrics to improve program outcomes. The team has implemented additional internal communication to follow up on cases which are approaching the 120-day timeline. Although the 120-day timeline is not an improvement measure listed on the SQSP, the Department will continue to work with USDOL to implement guidance and processes to meet the 120-day requirement. The conditions noted in this finding were previously reported in findings 2023-009, 2022-006, 2021-005, and 2020-011. Completion Date: January 2025 Agency Contact: Jay Summers External Audit Manager PO Box 9046 Olympia, WA 98507-9046 (360) 529-6718 Joshua.Summers@esd.wa.gov
Finding: The Office of Superintendent of Public Instruction did not have internal controls over and did not comply with requirements to verify single audits were completed for all subrecipients of the Child and Adult Care Program. Questioned Costs: Assistance Listing # 10.558 Amount $0 Sta...
Finding: The Office of Superintendent of Public Instruction did not have internal controls over and did not comply with requirements to verify single audits were completed for all subrecipients of the Child and Adult Care Program. Questioned Costs: Assistance Listing # 10.558 Amount $0 Status: Corrective action in progress Corrective Action: The Office has implemented internal controls to ensure all subrecipients requiring a single audit are identified and to follow up on any program-related findings that require a management decision. Procedures are also updated to maintain the subrecipient audit tracking log. The Office will implement a training plan for the Child Nutrition Services fiscal team, which includes cross training and completing the State Auditor’s Office subrecipient monitoring training. The Office will follow up with the subrecipient identified in the audit to ensure it obtains its required single audit. The conditions noted in this finding were previously reported in finding 2023-004. Completion Date: Estimated June 2025 Agency Contact: Debbie Libra Fiscal & Claims Supervisor PO Box 47200 Olympia, WA 98504-7200 (564) 233-8620 Debbie.libra@k12.wa.us
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