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21.019 - Lack of Internal Controls and Noncompliance with Subrecipient Monitoring Requirement – Coronavirus Relief Fund (Repeat Finding - 2021-001) Oklahoma County will comply with federal laws and regulations and grant agreements by creating award agreements that are designed and implemented to ens...
21.019 - Lack of Internal Controls and Noncompliance with Subrecipient Monitoring Requirement – Coronavirus Relief Fund (Repeat Finding - 2021-001) Oklahoma County will comply with federal laws and regulations and grant agreements by creating award agreements that are designed and implemented to ensure Subrecipient Monitoring is performed. Anticipated Completion Date: 6/30/2024 Responsible Contact Person: Brian Maughan, BOCC Chairman
View Audit 314691 Questioned Costs: $1
District subsequently sought and obtained CDE approval for the expenditures identified in finding 2022-003.District has initiated a procedure where any requisitions for purchases utilizing Federal funds are routed through the Director of state and federal programs prior to being approved. The direct...
District subsequently sought and obtained CDE approval for the expenditures identified in finding 2022-003.District has initiated a procedure where any requisitions for purchases utilizing Federal funds are routed through the Director of state and federal programs prior to being approved. The director of state and federal programs, prior to approving the purchase requisition, will obtain approval from the CDE. All contracts utilizing federal funds will include language related to Federal wage rate requirements. The supervisor of Purchasing will be tasked with ensuring the contract language is present in agreements for services utilizing Federal funds.
View Audit 313833 Questioned Costs: $1
Finding No. 2022-004:In order to address the above finding, management has put the below plan in place and included the status related to the steps of the plan:
Finding No. 2022-004:In order to address the above finding, management has put the below plan in place and included the status related to the steps of the plan:
Finding No. 2022-002:In order to address the above finding, management has put the below plan in place and included the status related to the steps of the plan:
Finding No. 2022-002:In order to address the above finding, management has put the below plan in place and included the status related to the steps of the plan:
Finding 453169 (2022-001)
Significant Deficiency 2022
The Auditor's office with work with the Community Transportation Connection and provide training on the importance of grant reporting and tracking.We will also explain and show how using the ERP system can aid in the tracking of expenses and help to ensure better accounting for grants.The Auditor's ...
The Auditor's office with work with the Community Transportation Connection and provide training on the importance of grant reporting and tracking.We will also explain and show how using the ERP system can aid in the tracking of expenses and help to ensure better accounting for grants.The Auditor's office will implement an additional level of control for this department's grant award, reporting, and reimbursements to be reviewed by our office for accuracy.Use online state and federal agency websites to verify grant awards amounts and disbursements.
The responsible officials agree with the finding and will address the matter as part of their corrective action plan. The District will purchase needed equipment and supplies to reduce the net cash.
The responsible officials agree with the finding and will address the matter as part of their corrective action plan. The District will purchase needed equipment and supplies to reduce the net cash.
INTERNAL CONTROL OVER SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS PREPARATION AND REVIEWCriteriaAs described in our engagement letter, management is responsible for establishing and maintaining internal controls, including monitoring, and for the fair presentation of the schedule of expenditures of f...
INTERNAL CONTROL OVER SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS PREPARATION AND REVIEWCriteriaAs described in our engagement letter, management is responsible for establishing and maintaining internal controls, including monitoring, and for the fair presentation of the schedule of expenditures of federal awards, including the notes to the schedule of expenditures of federal awards, in conformity with the modified cash basis of accounting.ConditionThe District does not have a system of internal control that would provide management with reasonable assurance that the District's schedule of expenditures of federal awards and related disclosures are complete and presented in accordance with the modified cash basis of accounting. As such, management requested us to compile the trial balance from the general ledger and prepare a draft of the schedule of expenditures of federal awards, including the related note disclosures.CauseManagement does not prepare the schedule of expenditures of federal awards in accordance with the modified cash basis of accounting.Potential EffectThe potential exists that a material misstatement of the schedule of expenditures of federal awards could occur and not be prevented or detected by the District's internal control.RecommendationWe recommend that the District review and approve the proposed auditor adjusting entries and the adequacy of schedule of the expenditures of federal awards disclosures prepared by the auditors and apply analytic procedures to the draft financial statements, among other procedures as considered necessary by management.
Assistance Listings number and program name: 14.231 COVID-19 Emergency Solutions Grant ProgramDepartment: Maricopa County Human ServicesContact Person(s): Nicole Forbes, Finance Manager, Human Services Department.Anticipated completion date: April 1, 2023Concur: Maricopa County Human Services Depart...
Assistance Listings number and program name: 14.231 COVID-19 Emergency Solutions Grant ProgramDepartment: Maricopa County Human ServicesContact Person(s): Nicole Forbes, Finance Manager, Human Services Department.Anticipated completion date: April 1, 2023Concur: Maricopa County Human Services Department (HSD) concurs with the finding. HSD will develop and implement written policies and procedures to pay subrecipients for program expenditures they incur and request reimbursement for within the required 30 days of receiving their completed reimbursement requests. HSD will also develop a tracking system to ensure payments are released within 30 days upon receipt of a completed reimbursement request, which will document attempts to obtain a completed reimbursement request.
Finding 452437 (2022-024)
Significant Deficiency 2022
FINDING # 2022-024No finding in prior yearThe New Jersey Department of Labor and Workforce Development (DLWD) has a policy in place for processing tuition reimbursements that are performed by the Department?s Accounts Payable unit. The policy was reviewed by the Office of Finance & Accounting (F&A)...
FINDING # 2022-024No finding in prior yearThe New Jersey Department of Labor and Workforce Development (DLWD) has a policy in place for processing tuition reimbursements that are performed by the Department?s Accounts Payable unit. The policy was reviewed by the Office of Finance & Accounting (F&A) and internal control procedures were enhanced to ensure that fiscal cutoff measures were appropriately addressed. Tuition reimbursement procedures include having the requests forwarded to the responsible Supervising Analyst in the Appropriations/Accounting unit for final review and approval to ensure the proper fiscal period is charged. The correcting transactions were completed during the Single Audit timeframe to remediate the findings by charging and reimbursing the proper fiscal year accounts. The DLWD will continue its efforts to ensure compliance and that all charges applied to Federal awards are within the specified period of performance going forward.COMPLETION DATE/CONTACT PERSON December 31, 2023Ruslana Nagorniak(609) 984-7678Ruslana.Nagorniak@dol.nj.gov
View Audit 313443 Questioned Costs: $1
Finding 452428 (2022-021)
Significant Deficiency 2022
FINDING # 2022-021No finding in prior yearThe Department of Children and Families (DCF) will review and enhance its procedures and controls to ensure that expenditures charged to the program are incurred within each grant award?s specified period of performance.Further, as the federal SSBG grant awa...
FINDING # 2022-021No finding in prior yearThe Department of Children and Families (DCF) will review and enhance its procedures and controls to ensure that expenditures charged to the program are incurred within each grant award?s specified period of performance.Further, as the federal SSBG grant award cited has a period of performance that remains open through September 2023, DCF has adjusted the four transactions that were posted incorrectly to another available funding source and ensured that all transactions presently recorded are now in compliance and within the specified period of performance.COMPLETION DATE/CONTACT PERSON Fiscal Year 2024Steven M. Dodson(609) 888-7555Steven.Dodson@dcf.nj.gov
View Audit 313443 Questioned Costs: $1
FINDING # 2022-020No finding in prior yearThe DHS Division of Family Development (DFD) agrees with the audit finding regarding the submission of subawards to the FFFATA Subaward Reporting System (FSRS).In accordance with the finding recommendation, the DFD will develop internal controls and procedur...
FINDING # 2022-020No finding in prior yearThe DHS Division of Family Development (DFD) agrees with the audit finding regarding the submission of subawards to the FFFATA Subaward Reporting System (FSRS).In accordance with the finding recommendation, the DFD will develop internal controls and procedures to ensure the timely reporting of all required subawards to FSRS. An initial review of the FSRS by DFD fiscal staff appeared to indicate that some federal grant data that should be prepopulated on the website was missing (e.g. Child Care M&M available; discretionary not found). DFD will work with the necessary federal agencies to ensure that the Division can input the required information for all awards.Assessment and development of policy and procedures related to this task will take approximately three months. Staff assignment, training, and submission of federal grant information to the federal website will occur over the next State fiscal year 2024.Projected policy and procedures development completion: July 1, 2023.Assignment and submission of federal reports: June 30, 2024.COMPLETION DATE/CONTACT PERSON Fiscal Year 2024Thomas Mattaliano, CFO-DFD(609) 588-3370Thomas.Mattaliano@dhs.nj.gov
FINDING # 2022-017No finding in prior yearThe Department of Community Affairs (DCA) now has a staff member in place with assigned responsibility for the FFATA reporting in the Federal Subaward Reporting System (FSRS) and other required federal reporting. To ensure that all required reporting in FSRS...
FINDING # 2022-017No finding in prior yearThe Department of Community Affairs (DCA) now has a staff member in place with assigned responsibility for the FFATA reporting in the Federal Subaward Reporting System (FSRS) and other required federal reporting. To ensure that all required reporting in FSRS is completed timely, the process and procedures will be fully documented and the LIHEAP program manager will verify completion each month. DCA will also hire additional staff or cross-train current staff to further support the federal reporting function.COMPLETION DATE/CONTACT PERSON June 30, 2023Fidel Ekhelar(609) 815-3905Fidel.Ekhelar@dca.nj.gov
FINDING # 2022-0152021-017With the Corrective Action Plan (CAP) previously developed as a result of the prior year 2021 audit finding, the Department?s Grants Unit with coordination from ELC program fiscal staff added a new function to the SAGE system that pulls all subaward data for all of ELC usin...
FINDING # 2022-0152021-017With the Corrective Action Plan (CAP) previously developed as a result of the prior year 2021 audit finding, the Department?s Grants Unit with coordination from ELC program fiscal staff added a new function to the SAGE system that pulls all subaward data for all of ELC using its assigned ALN number 93.323. This system change was implemented in September 2022 that allows SAGE to pull data by CFDA number and enables the ELC fiscal staff to access all ELC subawards. ELC fiscal staff also has a reminder set to report at the end of each month, to enter FFATA information into FSRS, and to upload each report to SharePoint ELC Document Library at the end of each month.As per the prior year CAP created in September 2022, FFATA information for ELC subawards began being entered into FSRS on September 1, 2022.COMPLETION DATE/CONTACT PERSON September 2022Secil Onat(609) 913-5308Secil.Onat@doh.nj.gov
FINDING # 2022-0142021-016The New Jersey Department of Health?s (DOH) Central Procurement recently implemented revised Department policy FMC-23-02 and is working with the DOH divisional procurement staff within the agency to achieve full compliance. The revised policy circular includes the debarmen...
FINDING # 2022-0142021-016The New Jersey Department of Health?s (DOH) Central Procurement recently implemented revised Department policy FMC-23-02 and is working with the DOH divisional procurement staff within the agency to achieve full compliance. The revised policy circular includes the debarment language identified as missing in the previous FMC 21-02 policy.COMPLETION DATE/CONTACT PERSON March 24, 2023Christopher Cuccia(609) 376-8536Christopher.Cuccia@doh.nj.gov
FINDING # 2022-013No finding in prior yearThe Department of Health, Division of Epidemiology, Environmental and Occupational Health?s (DEEOH), Vaccine Preventable Disease Program (VPDP) will attain full compliance with Federal Funding Accountability and Transparency Act (FFATA) requirements. The VPD...
FINDING # 2022-013No finding in prior yearThe Department of Health, Division of Epidemiology, Environmental and Occupational Health?s (DEEOH), Vaccine Preventable Disease Program (VPDP) will attain full compliance with Federal Funding Accountability and Transparency Act (FFATA) requirements. The VPDP on boarded a full-time lead fiscal/grants officer in August 2022 to oversee the Immunization Cooperative Agreements, including COVID-19 supplemental funding. VPDP fiscal/grants leadership will implement FFATA procedures for the Immunization Cooperative Agreement. These procedures shall include creating a list of all active first-tier subawards of federal funds DEEOH has issued at $30,000 or more under this Cooperative Agreement. The list will include all the data fields required for FFATA reporting. DEEOH fiscal/grants leadership will ensure each of the identified sub-awards is entered on the FFATA Subaward Reporting System (FSRS) website within 30 days of award issuance or award amendment.COMPLETION DATE/CONTACT PERSON March 24, 2023Susan Barcarola(609) 913-5302Susan.Barcarola1@doh.nj.gov
FINDING # 2022-0122021-015The Department of Human Services, Division of Aging Services (DoAS) continues to work towards attaining full compliance with Federal Funding Accountability and Transparency Act (FFATA) requirements. The DoAS continues to consult with the Department and/or other DHS Divisio...
FINDING # 2022-0122021-015The Department of Human Services, Division of Aging Services (DoAS) continues to work towards attaining full compliance with Federal Funding Accountability and Transparency Act (FFATA) requirements. The DoAS continues to consult with the Department and/or other DHS Division fiscal leadership to finalize the FFATA procedures. These procedures shall include creating a list of all active first-tier subawards of federal funds DoAS has issued at $30,000 or more. The list will include all the data fields required for FFATA reporting. DoAS grants management members will ensure each of the identified subawards is entered on the Federal Subaward Reporting System (FSRS) website. DoAS will also revise internal procedures to ensure all future subawards of $30,000 or more are entered on FSRS within 30 days of award.COMPLETION DATE/CONTACT PERSON April 30, 2023Hetal Bhatt609-438-4586Hetal.Bhatt@dhs.nj.govDennis McGowan609-438-4739Dennis.McGowan@dhs.nj.gov
Finding 452400 (2022-010)
Significant Deficiency 2022
FINDING # 2022-010No finding in prior yearAs recommended, the DCA will review current procedures to ensure that all subaward information required by the federal Uniform Guidance is included in all subaward contracts and grant agreements. The DCA has also reviewed its current subrecipient monitoring...
FINDING # 2022-010No finding in prior yearAs recommended, the DCA will review current procedures to ensure that all subaward information required by the federal Uniform Guidance is included in all subaward contracts and grant agreements. The DCA has also reviewed its current subrecipient monitoring procedures for standard subawards made by the agency and has determined that no internal control enhancements are required. The HAF award was a unique grant relationship for DCA in that the entire award was passed through to another New Jersey State government agency that is a direct affiliate of the Department. Monitoring procedures were determined based on the close working relationship with our affiliate organization and the fact that less than 1 percent of the grant award was expended through June 30, 2022. Current procedures included a risk assessment of the subrecipient and performance of the single audit desk review of the independent audit report. In addition, the Director of Audit, and the Executive Director of the subgrantee affiliate participate in weekly meetings where updates on the program status can be determined. DCA?s subrecipient monitoring plan also includes the hiring of an Integrity Monitor to oversee and monitor the use of the HAF funds as well as compliance with all HAF program reporting requirements. As program disbursement activity is continuing to increase with the HAF program(s) created more fully up and running, DCA is currently targeting the Integrity Monitor hire to take place sometime within the next three to six months.COMPLETION DATE/CONTACT PERSON Fiscal Years 2023 and 2024John Alexy(609) 913.4385John.Alexy@dca.nj.gov
FINDING # 2022-009No finding in prior yearThe Department of Community Affairs (DCA) has internal controls and procedures in place to ensure that required subawards are reported timely to FSRS in accordance with FFATA reporting requirements. The Homeowner Assistance Fund award received by DCA was uni...
FINDING # 2022-009No finding in prior yearThe Department of Community Affairs (DCA) has internal controls and procedures in place to ensure that required subawards are reported timely to FSRS in accordance with FFATA reporting requirements. The Homeowner Assistance Fund award received by DCA was unique in that it was planned and fully reallocated via Memorandum of Understanding (MOU) agreement to a DCA affiliate organization to administer on the State?s behalf. As a result, the DCA did not initially believe this single reallocation transaction was subject to FFATA reporting requirements. The Accountability Officer at the affiliate organization will be involved should another program and contractual arrangement of this type occur and will ensure that the FSRS reporting is done timely. No further subaward transactions are expected to be processed by DCA as the full allocation was disbursed to our affiliate organization upon receipt of the award and execution of the MOU.COMPLETION DATE/CONTACT PERSON Fiscal Years 2023-2024John Alexy(609) 913.4385John.Alexy@dca.nj.gov
FINDING # 2022-007No finding in prior yearIn recent years, the DLWD has transitioned from a manual contract process to a web-based system (i.e., SAGE and IGX systems) and has also experienced changes in personnel responsible for the contracting process. Although progress has been made with getting ...
FINDING # 2022-007No finding in prior yearIn recent years, the DLWD has transitioned from a manual contract process to a web-based system (i.e., SAGE and IGX systems) and has also experienced changes in personnel responsible for the contracting process. Although progress has been made with getting the FFATA Reporting Unit access to these automated systems, the DLWD will continue to enhance the communication between the offices that prepare and approve the contracts/agreements and the FFATA Reporting Unit. DLWD will also develop procedures to ensure that timely and accurate information is provided to the FFATA Reporting Unit and that group will also be included in the grant approval process so the unit is notified timely.COMPLETION DATE/CONTACT PERSON December 31, 2023Ahmanish Robinson(609) 984-4356Ahmanish.Robinson@dol.nj.gov
FINDING # 2022-002No finding in prior yearThe Department of Agriculture, Division of Food and Nutrition (DOA) was delinquent in submitting required reporting in the FFFATA Subaward Reporting System (FSRS) due to the inability to make system updates for the UEI change during the pandemic. This preve...
FINDING # 2022-002No finding in prior yearThe Department of Agriculture, Division of Food and Nutrition (DOA) was delinquent in submitting required reporting in the FFFATA Subaward Reporting System (FSRS) due to the inability to make system updates for the UEI change during the pandemic. This prevented the DOA from pulling data to submit the reports to the FSRS. The DOA has two technical staff members assigned to query the data fields required to upload the report. Once the query is complete the data is converted to a CSV file and uploaded to FSRS. As of December 2022, monthly reporting has resumed. Successful monthly upload documentation will now be provided and monitored by the Assistant Division Director and Fiscal Coordinator.COMPLETION DATE/CONTACT PERSON December 2022Melissa Pajak(609) 690-8880Melissa.Pajak@ag.nj.gov
Finding 449981 (2022-003)
Material Weakness 2022
Finding 2022-003Federal Program InformationFederal Agency: United States Department of EducationFederal Cluster: Student Financial AssistanceAward Periods: July 1, 2021 through June 30, 2022, and July 1, 2022 through June 30, 2023Corrective Action PlannedManagement agrees that Banner, the primary in...
Finding 2022-003Federal Program InformationFederal Agency: United States Department of EducationFederal Cluster: Student Financial AssistanceAward Periods: July 1, 2021 through June 30, 2022, and July 1, 2022 through June 30, 2023Corrective Action PlannedManagement agrees that Banner, the primary information system used to capture Federal Direct Loan information, was not specifically identified in the Mayo Clinic Information Security annual risk assessment which was primarily designed for compliance with The Health Insurance Portability and Accountability Act (HIPAA) Security rule.The following steps have been completed to address the gap identified:1. Compared the scope of the Mayo Clinic Information Security annual risk assessment and the requirements of the Department of Education, under the Gramm-Leach-Bliley Act and identified any gaps.2. Edited the existing annual risk assessment to close the gaps.3. Completed the risk assessment.Persons Responsible for Corrective ActionSarah Tyson, Senior Manager?Office of Information SecurityTarget Completion DateMay 31, 2023
Working Capital Reserves in Excess of Federal GuidelinesState Agency: Public Employees Health PlanFederal Program: VariousLong-term DisabilityPEHP operates as a fully functioning third party-administrator for Long-term Disability benefits for the state of Utah and other public entities in Utah. Co...
Working Capital Reserves in Excess of Federal GuidelinesState Agency: Public Employees Health PlanFederal Program: VariousLong-term DisabilityPEHP operates as a fully functioning third party-administrator for Long-term Disability benefits for the state of Utah and other public entities in Utah. Consequently, the reserves that PEHP holds and administers for the state of Utah do not relate to the payment of premium but the payment of ongoing, multi-year benefits for plan participants. These are vested benefits that PEHP would be required to pay on behalf the state for plan recipients, even if the program was discontinued and premiums were no longer collected. Because of this, PEHP will return excess premiums identified by our outside actuary while also seeking to obtain a waiver from the federal cost negotiator during 2023 to allow an increase in the number of days of working capital in compliance with federal guidelines.Medicare SupplementPEHP operates as a fully functioning third party-administrator for Medicare Supplement and Part D benefits for the state of Utah and other public entities in Utah. Consequently, the reserves that PEHP holds and administers for the state of Utah do not relate to the payment of premium but the payment of ongoing benefits for plan participants. During 2023, PEHP will seek to obtain a waiver from the federal cost negotiator to allow an increase in the number of days of working capital in compliance with federal guidelines on three grounds. First, the volatile nature of Part D pharmacy claims. Second, the relatively small dollar amount associated with Medicare premiums that can create a higher level of potential volatility. Third, the relatively small number of members covered by PEHP?s Medicare products that can also create a higher level of potential volatility.Contact Person: Rob Dolphin, CFOAnticipated Completion Date: June 30, 2024
2022-027. Working Capital Reserves in Excess of Federal GuidelinesState Agency: Department of Government OperationsFederal Program: VariousDivision of Purchasing and General ServicesCooperative Contract Management ? Public entities in Utah rely on the Division of Purchasing and General Services (Sta...
2022-027. Working Capital Reserves in Excess of Federal GuidelinesState Agency: Department of Government OperationsFederal Program: VariousDivision of Purchasing and General ServicesCooperative Contract Management ? Public entities in Utah rely on the Division of Purchasing and General Services (State Purchasing) to maintain the cooperative contract program to help with public procurement in Utah. The usage of state cooperative contracts by public entities increased dramatically this past year resulting in a corresponding increase in the collection of administrative fees. State Purchasing still continues to decrease the administrative fees on state cooperative contracts as each contract expires and is rebid. This is a slow process since State Purchasing has nearly 1,200 cooperative contracts that expire only every five years. Although State Purchasing is allowed under law to collect up to a 1.0% administrative fee on each cooperative contract, currently the average administrative fee is 0.38%. State Purchasing has also requested the Utah Legislature to appropriate out a portion of the excess reserves in this fund in fiscal year 2023. The calculation for the refund of the federal portion of this transfer out will be submitted to Cost Allocation Services for review and approval when this transfer is complete.Federal and State Surplus Property - Due to the completion of the new Utah State Prison, Surplus Property anticipates relocating by the end of calendar year 2023. At that time, Federal and State Surplus will need to use their working capital reserve funds for the costs of moving to and furnishing their new location. These additional expenses should eliminate these excess reserves by December 2023.Contact Person: Windy Aphayrath (waphayrath@utah.gov), Division Director, Division of Purchasing & General ServicesAnticipated Correction Date: December 30, 2023Purchasing Cards ? The Division of Finance (State Finance) is in the process of implementing a new travel and expense reporting system for all State agencies to simplify travel approvals, travel reimbursements, and reduce the administrative burden for the purchasing card (p-card) expense reports on State agency personnel. To cover system implementation costs, State Finance elected not to distribute the rebates received from U.S. Bank related to State agency p-card spending for calendar years 2021 and 2022. Rebates were still passed through to participating entities external to the primary government. The anticipated completion date for the system is the end of calendar year 2023. State Finance will review annually the costs of the system, develop a cost allocation strategy between the Travel and P-Card programs, adjust travel rates to cover the travel program?s ongoing costs, and distribute any remaining p-card rebates to State agencies respective to their spend. This effort will reduce and/or eliminate excess federal reserves by the end of fiscal year 2024.Contact Person: Allyson Branch (abranch@utah.gov), Manager of Accounting Operations, State Division of FinanceAnticipated Correction Date: June 30, 2024Division of Risk ManagementWorkers? Compensation Fund & Property? We requested approval in the current legislative session to transfer $2,000,000 out of the Workers Compensation Fund and into the Property Fund. We will submit the calculation for the refund of the federal portion of this transfer to Cost Allocation Services for their review and approval when this transfer is completed. Additionally, in FY 2023, the premiums charged for workers compensation have been reduced 26% from $0.61 per $100 to $0.45 per $100. The property commercial insurance market and the Property Fund are experiencing enormous year-over-year premium increases. We have seen a doubling of premiums in the last five years, from $14,000,000 to $28,000,000. Additionally, the budget process requires that we project funding 1-2 years in advance before we can enact rate increases to pay the excess insurance premiums that are due each fiscal year. As such, we deem it important to maintain a retained earnings balance in the Property Fund to be able to sustain the Fund's ability to pay for increasing premiums.Contact Person: Rachel Terry (rachelgterry@utah.gov), Division Director, Division of Risk ManagementAnticipated Correction Date: June 30, 2023Division of Technology ServicesPrint Services ? DTS currently projects Print Services retained earnings will decrease by $181 thousand in fiscal year 2023. The Print Services rate was set lower than the cost to provide this service in fiscal year 2024. DTS plans to annually review and adjust rates and issue mid-year rebates, if necessary, to bring DTS Print Services into compliance with federal excess reserve guidelines by the end of fiscal year 2024.Communication Services - The fiscal year 2024 rate was set to under recover the cost of providing this service by an additional $425 thousand. Because the reductions to retained earnings were smaller than expected in fiscal year 2022 and are projected to be smaller than expected in fiscal year 2023, DTS will need an additional year to address this excess. DTS plans to annually review and adjust rates and issue mid-year rebates, if necessary, to bring DTS Communication Services into compliance with federal excess reserve guidelines by the end of fiscal year 2025.Network Services - DTS anticipates significant expenses to this product in fiscal year 2023 as DTS upgrades the aging network infrastructure and as the demand for network services continues to increase (e.g. Agencies are asking for increased bandwidth). Upgrades to the infrastructure have been more complex than originally estimated, which has delayed the majority of this expense to fiscal year 2023. DTS projects the Network Services retained earnings will decrease by nearly $1 million in fiscal year 2023. DTS plans to annually review and adjust rates and issue mid-year rebates, if necessary, to bring DTS Network Services into compliance with federal excess reserve guidelines by the end of fiscal year 2023.Mainframe Services - This product will be coming to an end by fiscal year 2024. As the product ends, DTS will issue a rebate to reduce retained earnings to the agencies using the system. DTS plans to issue a credit in fiscal year 2023 which will bring Mainframe Services into compliance.Contact Person: Dan Frei (dfrei@utah.gov), Finance Director, Division of Technology ServicesAnticipated Correction Date: June 30, 2025Division of Human Resource ManagementHuman Resources Core Services - The Division of Human Resource Management (DHRM) projects DHRM Core Services expenses to increase in fiscal year 2023 and future years. The DHRM Core Services excess reserves was the result of an error correction. In an effort to decrease these excess reserves, DHRM has not requested a rate increase for DHRM Core Services, though we do anticipate costs to increase. We will continue to annually review and adjust the DHRM Core Services rate and, if necessary, issue refunds or rebates to ensure DHRM Core Services is in compliance with federal excess reserve guidelines by the end of fiscal year 2024.Contact Person: Jake Hennessy (jakehennessy@utah.gov), Finance Director, Department of Government OperationsAnticipated Correction Date: June 30, 2024
Finding 449964 (2022-012)
Significant Deficiency 2022
Subawards for SAPT Not Included in FFATA ReportsState Agency: Department of Health and Human ServicesFederal Program: Substance Abuse and Prevention ProgramThe Department concurs with this recommendation. We agree to properly report the subaward information beginning with SFY23.Anticipated Correcti...
Subawards for SAPT Not Included in FFATA ReportsState Agency: Department of Health and Human ServicesFederal Program: Substance Abuse and Prevention ProgramThe Department concurs with this recommendation. We agree to properly report the subaward information beginning with SFY23.Anticipated Correction Date: November 30, 2022Contact Person: Mark Meier, Financial Manager II, markmeier@utah.gov, and Kyle Larsen, Administrative Services Director, kblarson@utah.gov
Finding 449962 (2022-006)
Material Weakness 2022
Foster Care Eligibility Controls Not Completed in a Timely MannerState Agency: Department of Health and Human ServicesFederal Program: Foster Care Title IV-EThe Department concurs with this recommendation. The agency is in the process of building an integrated eligibility team and will increase its...
Foster Care Eligibility Controls Not Completed in a Timely MannerState Agency: Department of Health and Human ServicesFederal Program: Foster Care Title IV-EThe Department concurs with this recommendation. The agency is in the process of building an integrated eligibility team and will increase its capacity by having three team leads and one support coordinator III to support the eligibility review process.Anticipated Correction Date: June 30, 2023Contact Person: Tracy Wiggill, Eligibility Program Manager, twiggill@utah.gov
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