Corrective Action Plans

Finding 1187064 (2025-001)

Material Weakness 2025

MO

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting

Marshall Municipal Utilities respectfully submits the following Corrective Action Plan for the year ended September 30, 2025. Contact information for the individual responsible for the corrective action: Aimee Klinge, Finance Officer City of Marshall, Missouri Independent Public Accounting Firm: Ger...

Marshall Municipal Utilities respectfully submits the following Corrective Action Plan for the year ended September 30, 2025. Contact information for the individual responsible for the corrective action: Aimee Klinge, Finance Officer City of Marshall, Missouri Independent Public Accounting Firm: Gerding, Korte & Chitwood, P.C., 723 Main Street, Boonville, MO 65233 Audit Period: Year ended September 30, 2025 The findings from the September 30, 2025, Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Significant Deficiency 2025-001 Uniform Guidance Audit Submission Recommendation: The City should submit its single audit reporting package to the federal audit clearinghouse no later than 9 months after fiscal year-end. Action Taken: Marshall Municipal Utilities will implement procedures to ensure timely submission of the Single Audit reporting package. MMU will work with auditors to track all federal reporting deadlines, and responsibility for monitoring and submitting the report is assigned to the Controller. Management will monitor the audit timeline to ensure submission occurs within the required nine-month deadline.

View Audit 394781

Finding 1187064 (2025-001)

Material Weakness 2025

Marshall Municipal Utilities

MO

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting

Completion Date: September 30, 2026

View Audit 394781

Finding 1187064 (2025-001)

Material Weakness 2025

Marshall Municipal Utilities

MO

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting

Sincerely, Tony Bersano, Controller, Marshall Municipal Utilities

View Audit 394781

Finding 1187057 (2025-001)

Material Weakness 2025

Hibiscus Childrens Center, Inc.

FL

Subrecipient Monitoring Internal Control / Segregation of Duties Significant Deficiency § 200.303

Management Response: All staff will be required to complete annual trainings during the same time each year. This has already been implemented for the current fiscal year FY25-26. Tracking of staff trainings will be maintained monthly and filed in staff personnel files by a Human Resources staff.

View Audit 394745

Finding 1187043 (2025-028)

Material Weakness 2025

State of North Carolina

NC

Period of Performance Internal Control / Segregation of Duties Subrecipient Monitoring

Grant Funds Spent After Award Ended The Division will complete the following corrective actions: •Continue cross-divisional meetings to strengthen grant oversight and fiscal monitoring. •Complete targeted training to support consistent application of requirements. •Update policies and procedures to ...

Grant Funds Spent After Award Ended The Division will complete the following corrective actions: •Continue cross-divisional meetings to strengthen grant oversight and fiscal monitoring. •Complete targeted training to support consistent application of requirements. •Update policies and procedures to reinforce verification that expenditures are incurred within the approved grant period and are supported by appropriate documentation prior to approval and payment. Anticipated Completion Date: June 30, 2026.

View Audit 394732

Finding 1187042 (2025-027)

Material Weakness 2025

State of North Carolina

NC

Subrecipient Monitoring Eligibility Internal Control / Segregation of Duties

Overpayments to Subrecipients The Division will complete the following corrective actions: •Complete targeted training to support proper implementation of these procedures. •Update procedures to include quality assurance reviews. Anticipated Completion Date: June 30, 2026.

View Audit 394732

Finding 1187038 (2025-023)

Material Weakness 2025

State of North Carolina

NC

Subrecipient Monitoring Reporting

FFATA Reporting Not Completed The Division of Social Services Budget Office (Division) implemented a corrective action plan focused on staff training, clearer processes, and accountability as noted below. •A training session was conducted for newly hired staff to ensure understanding of the FFATA re...

FFATA Reporting Not Completed The Division of Social Services Budget Office (Division) implemented a corrective action plan focused on staff training, clearer processes, and accountability as noted below. •A training session was conducted for newly hired staff to ensure understanding of the FFATA reporting requirements. •Staff were cross trained to improve the workflow and reduce disruptions during periods of staff shortages or competing priorities. •The Division has updated its FFATA procedures, and a budget analyst has been assigned to each grant to begin the FFATA reporting process. •The Division is completing fiscal year 2026 FFATA reporting to bring all reporting current as part of ongoing operations. •The Division or designee will oversee the reporting process to ensure accuracy and timely reporting. Anticipated Completion Date: June 30, 2026.

View Audit 394732

Finding 1187034 (2025-019)

Material Weakness 2025

State of North Carolina

NC

Subrecipient Monitoring Reporting

FFATA Reporting Not Completed The Division of Aging has initiated the development of a comprehensive contingency plan that includes: Actions Taken: All subrecipient grant notices for the audited period were uploaded to the FFATA Subaward Reporting System (FSRS). Planned Actions: • Development and Im...

FFATA Reporting Not Completed The Division of Aging has initiated the development of a comprehensive contingency plan that includes: Actions Taken: All subrecipient grant notices for the audited period were uploaded to the FFATA Subaward Reporting System (FSRS). Planned Actions: • Development and Implementation of Standard Operating Procedures (SOPs) including detailed instructions and timelines for identifying applicable subawards and completing FFATA reporting in FSRS. • Cross-training of staff across sections regarding requirements and expectations for FFATA reporting. • Establishing a system to track subawards, monitor reporting deadlines, and verify timely submissions. The Division Director (or their appointed designee) and Section Chief of Planning will oversee implementation and conduct reviews to ensure ongoing compliance. Anticipated Completion Date: June 30, 2026.

View Audit 394732

Finding 1187031 (2025-016)

Material Weakness 2025

State of North Carolina

NC

Student Financial Aid Subrecipient Monitoring Eligibility

Financial Assistance Disbursed in Excess of Student Eligibility Modified existing report to include the identification of students with dependent status and independent level loans in the absence of a Parent PLUS denial. Added weekly task to Loan Processing calendar to include the review of report. ...

Financial Assistance Disbursed in Excess of Student Eligibility Modified existing report to include the identification of students with dependent status and independent level loans in the absence of a Parent PLUS denial. Added weekly task to Loan Processing calendar to include the review of report. Corrective Action was Completed on: August 25, 2025.

View Audit 394732

Finding 1187028 (2025-013)

Material Weakness 2025

State of North Carolina

NC

Student Financial Aid Subrecipient Monitoring Eligibility

Financial Assistance Disbursed in Excess of Student Eligibility In September and October 2025, the Director of Student Financial Aid reminded the team members of the mandatory process step which requires them to review each student’s loan history in the NSLDS (National Student Loan Data System) and ...

Financial Assistance Disbursed in Excess of Student Eligibility In September and October 2025, the Director of Student Financial Aid reminded the team members of the mandatory process step which requires them to review each student’s loan history in the NSLDS (National Student Loan Data System) and place a copy of the NSLDS history in the student’s financial aid file as evidence of their review. A review process to confirm compliance was implemented in the fall 2025 semester. An Assistant Director in the Office of Student Financial Aid is responsible for performing audits of our internal files to confirm that the NSLDS reviews are documented. The Assistant Director also provides remediation to any team member whose records are not in compliance. The University has already repaid the over-award amount. Corrective action was completed on: October 29, 2025.

View Audit 394732

Finding 1187024 (2025-009)

Material Weakness 2025

State of North Carolina

NC

Student Financial Aid Subrecipient Monitoring Eligibility

Student Enrollment Status Reporting Errors Collaborate with UNCG Information Technology Services (ITS) to create an automated process to correctly report enrollment status changes with appropriate status dates to the National Student Loan Database System (NSLDS) via the National Clearinghouse (NSC) ...

Student Enrollment Status Reporting Errors Collaborate with UNCG Information Technology Services (ITS) to create an automated process to correctly report enrollment status changes with appropriate status dates to the National Student Loan Database System (NSLDS) via the National Clearinghouse (NSC) when a student adds, drops, or withdraws from one or more (but not all) courses. Develop written policies and procedures that detail how the automated processing reports data, how manual updates are made, how to respond to error reports, and when/how to test samples at NSC and NSLDS on a recurring basis to ensure the process is working as intended. The written policies and procedures will identify key positions within the University Registrar Office and Office of Financial Aid and Scholarships and what each position is responsible for including regularly testing enrollment reporting to ensure NSC and NSLDS are up to date based on the latest enrollment reporting file. Anticipated Completion Date: April 3, 2026.

View Audit 394732

Finding 1187023 (2025-008)

Material Weakness 2025

State of North Carolina

NC

Student Financial Aid Subrecipient Monitoring Eligibility § 200.303

No Internal Controls Over Student Enrollment Status Reporting Financial Aid Control for NSLDS Enrollment Reporting: •Enrollment is reported via the National Student Clearinghouse by the Registrar. •Financial Aid Staff (Associate Director of Financial Aid) will pull a list of enrolled students for th...

No Internal Controls Over Student Enrollment Status Reporting Financial Aid Control for NSLDS Enrollment Reporting: •Enrollment is reported via the National Student Clearinghouse by the Registrar. •Financial Aid Staff (Associate Director of Financial Aid) will pull a list of enrolled students for the semester and create a sample population for the control check. •Financial Aid Staff (Associate Director of Financial Aid) will Ched each individual student in the Enrollment section of NSLDS to ensure the student's enrollment status has been reported correctly. •Financial Aid Staff (Associate Director of Financial Aid) will perform this check 2-3 weeks after census each semester and document the check in the quality control folder in the shared drive. Corrective Action was Completed on: December 5, 2025.

View Audit 394732

Finding 1187022 (2025-007)

Material Weakness 2025

State of North Carolina

NC

Student Financial Aid Subrecipient Monitoring Eligibility

No Internal Controls Over Student Enrollment Status Reporting Like many schools, ECU relies on the National Student Clearinghouse (NSC) to submit student enrollment status data to the NSLDS (National Student Loan Data System). In response to the audit recommendation, an Assistant Director in the Off...

No Internal Controls Over Student Enrollment Status Reporting Like many schools, ECU relies on the National Student Clearinghouse (NSC) to submit student enrollment status data to the NSLDS (National Student Loan Data System). In response to the audit recommendation, an Assistant Director in the Office of Student Financial Aid has been assigned to regularly review automated reports that identify students whose data in the ECU, NSC, and NSLDS databases doesn’t match. (This task was not completed during the audit period due to position vacancies.) When a student is identified on the error report, the Assistant Director reviews the data in ECU’s student system and the NSLDS to determine the differences and the root cause of the problem. The Financial Aid Office and/or Registrar Office then takes corrective action to ensure the NSLDS record and ECU’s record matches. Corrective action was completed on: October 1, 2025.

View Audit 394732

Finding 1187019 (2025-004)

Material Weakness 2025

State of North Carolina

NC

Student Financial Aid Subrecipient Monitoring Eligibility

Student Enrollment Status Reporting Errors Craven Community College (College) received guidance from the North Carolina System Office to improve the accuracy and timeliness of enrollment reporting. The new process involves updating Colleague system parameters to enhance data gathering and streamline...

Student Enrollment Status Reporting Errors Craven Community College (College) received guidance from the North Carolina System Office to improve the accuracy and timeliness of enrollment reporting. The new process involves updating Colleague system parameters to enhance data gathering and streamline report submissions. The College added an additional report submission following each term to capture graduation status changes. These changes were implemented in September 2025. The College changed the enrollment report submission date to capture student status changes in a timely manner. This change was implemented in September 2025. An Internal Control Process (ICP) will be developed that outlines steps to be taken to conduct two self-audits each semester. The ICP will be located on the college’s shared drive accessible by all employees. The ICP will be available by March 1, 2026. The College will self-audit student records submitted to the National Clearinghouse and National Student Loan Data System (NSLDS) twice per semester at the mid-point and at end-of-term. The self-audit will be conducted by the Executive Director of Financial Aid and the Director of Admissions and Student Records. The Directors will review a total of 50 files per audit. A record of each audit will be stored on the secured shared directory. The shared directory can only be accessed by the staff in Student Services. The first self-audit will occur during March 2026. Anticipated Completion Date: June 30, 2026.

View Audit 394732

Finding 1187018 (2025-003)

Material Weakness 2025

State of North Carolina

NC

Student Financial Aid Subrecipient Monitoring Eligibility

No Internal Controls Over Student Enrollment Status Reporting Assignment of Responsibility: The Registrar will provide a copy of each NSC enrollment report to the Director of Financial Aid for review. The Director of Financial Aid will review a sample of students included in the report by comparing ...

No Internal Controls Over Student Enrollment Status Reporting Assignment of Responsibility: The Registrar will provide a copy of each NSC enrollment report to the Director of Financial Aid for review. The Director of Financial Aid will review a sample of students included in the report by comparing enrollment information with records in the National Student Loan Data System (NSLDS). Any discrepancies or enrollment status changes not accurately reflected in NSLDS will be identified and corrected in a timely manner. This review and reconciliation process will be conducted monthly for enrollment status changes and once per semester for graduation status updates. Written Policies and Procedures: CFCC maintains an internal document that outlines the procedures required to complete all NSC reporting. This document will be updated to incorporate the reconciliation and review process involving the Director of Financial Aid to ensure accuracy, consistency, and continuity. Corrective action was completed on: January 21, 2026.

View Audit 394732

Finding 1187017 (2025-002)

Material Weakness 2025

State of North Carolina

NC

Student Financial Aid Subrecipient Monitoring Eligibility

Student Enrollment Status Reporting Errors Since October 2025, the College has operated under a rigorous review process. This initiative is managed through a cross-functional collaboration between Financial Aid and Records and Registration, with executive oversight provided by the Vice President of ...

Student Enrollment Status Reporting Errors Since October 2025, the College has operated under a rigorous review process. This initiative is managed through a cross-functional collaboration between Financial Aid and Records and Registration, with executive oversight provided by the Vice President of Student Services, the Executive Director of Enrollment Management, and the Director of Financial Aid. •Error Resolution and Reconciliation: Error files and NSLDS reject logs are shared immediately with the Financial Aid Director. Staff are required to review every student flagged in these files and verify that corrections are accurately reflected in the NSLDS database. Process implemented since October 2025. •Increase in Control: To streamline communication and sharing of information, CCC& Tl is launching a centralized Microsoft Teams site for all stakeholders. This site will serve as a repository for National Student Clearinghouse (NSC) term enrollment status error files, graduate error files, and comprehensive PDF lists of all students submitted to the NSC. The site will also include written procedures for identifying and reporting enrollment status changes, and defined roles and responsibilities. Process to be completed by March 13, 2026. •Staff Training and Accountability: All relevant staff will receive comprehensive training on these new protocols. A standardized checklist has been developed to track completed steps. Process will be completed by March 13, 2026. These steps are designed to increase control and significantly improve the accuracy and timeliness of student status updates, thereby ensuring full compliance with state and federal reporting requirements. Anticipated Completion Date: March 13, 2026.

View Audit 394732

Finding 1187003 (2025-001)

Material Weakness 2025

Ursinus College

PA

Student Financial Aid Subrecipient Monitoring Reporting

Finding 2025-001 Condition During our audit, for 1 out of 25 students selected for testing, the College did not report to the National Student Clearninghouse (NSC) and the National Student Loan Data System (NSLDS) within 30 days or included in a response to a roster file within 60 days. However, the...

Finding 2025-001 Condition During our audit, for 1 out of 25 students selected for testing, the College did not report to the National Student Clearninghouse (NSC) and the National Student Loan Data System (NSLDS) within 30 days or included in a response to a roster file within 60 days. However, the student was ultimately reported to the NSC and NSLDS. Corrective Action Plan The graduation status of the student was not reported to NSC and NSLDS in a timely manner. The student qualified as a May 2025 graduate. However, at the point in time at which May graduates were reported to NSC, the final transcripts for the off-campus credits the student used to complete his degree had not yet been received. As a result, his degree was not conferred in the student information system until after the degree upload was sent to NSC. Then, by human error, once the student’s transcripts were received, his graduation status was not manually reported to NSC until after the 60-day reporting period had passed. To prevent this situation from arising in the future, we have changed the way we track students whose degree conferrals are entered into the SIS after the date on which the graduates upload has been sent to NSC. This process change will highlight those students whose conferrals must be manually reported to NSC because they were not included in the initial upload of graduates sent to NSC. We will also require students sending transcripts for credits taken off campus to have those transcripts received by our office within 30 days of the conferral date. If transcripts containing credits necessary for graduation are received more than 30 days after the conferral date, the student’s degree conferral will be pushed back to the next available degree conferral data. Name of Contact Person Responsible for Corrective Action: Michael Reig, Registrar Completion Date: December 1, 2025

View Audit 394717

Finding 1186991 (2025-006)

Material Weakness 2025

Clinton County, Iowa

IA

Subrecipient Monitoring Material Weakness § 200.303 § 200.331 § 200.333

Finding 2025-006 Subrecipient Monitoring Federal Agency Name: Department of Health and Human Services Pass-Through En􀆟ty: Iowa Department of Health and Human Services Assistance Lis􀆟ng Number: 93.069 Program Name: Public Health Emergency Preparedness Finding Summary: The County did not formally comm...

Finding 2025-006 Subrecipient Monitoring Federal Agency Name: Department of Health and Human Services Pass-Through En􀆟ty: Iowa Department of Health and Human Services Assistance Lis􀆟ng Number: 93.069 Program Name: Public Health Emergency Preparedness Finding Summary: The County did not formally communicate the required informa􀆟on to the subrecipient. No subrecipient agreement was executed. In addi􀆟on, no monitoring ac􀆟vi􀆟es were documented. Responsible Individuals: Amber Shepard, Budget Director Correc􀆟ve Ac􀆟on Plan: Clinton County is working with Genesis Health System on implemen􀆟ng a subrecipient agreement and will put a control process in place to monitor An􀆟cipated Comple􀆟on Date: June 30, 2026

View Audit 394700

Finding 1186990 (2025-001)

Material Weakness 2025

Ritter Center

CA

Subrecipient Monitoring

The Center’s responsible officials acknowledge the finding. The Center implemented additional training for all staff involved in the sliding fee discount application process and implemented a review of sliding fee discount applications at the management level, effective March 31, 2025. Since that ti...

The Center’s responsible officials acknowledge the finding. The Center implemented additional training for all staff involved in the sliding fee discount application process and implemented a review of sliding fee discount applications at the management level, effective March 31, 2025. Since that time, no further errors have been identified. We are committed to maintaining accurate application of the sliding fee schedule. We will continue ongoing staff training and regular supervisory reviews going forward to ensure compliance. Furthermore, the Accounting Department will perform periodic sampling several times a year to verify that sliding fee determinations continue to be applied correctly. Responsible persons: Jim Kelly, Chief Financial Officer Rachelle Valenzuela, Clinic Manager Sehrish Khan, Director of Clinical Compliance Implementation Date: March 31, 2025

View Audit 394694

Finding 1186989 (2025-002)

Material Weakness 2025

State of Ohio

OH

Reporting Internal Control / Segregation of Duties Procurement, Suspension & Debarment

Corrective Action Plan: The Department will review current processes for the Federal Funding Accountability and Transparency Act (FFATA) reporting to ensure subawards are reported within the Federal requirements. In January 2026, the Department implemented a new process to electronically upload suba...

Corrective Action Plan: The Department will review current processes for the Federal Funding Accountability and Transparency Act (FFATA) reporting to ensure subawards are reported within the Federal requirements. In January 2026, the Department implemented a new process to electronically upload subawards directly into SAM.gov. The Department will continue to monitor the new process to ensure subawards are reported timely and in accordance with Federal FFATA requirements. Anticipated Completion Date for Corrective Action: June 2026 Contact Person Responsible for Corrective Action: Name: Scott Ferguson Title: Chief Financial Officer Address: 30 E Broad Street, 11th Floor, Columbus, Ohio Phone Number: (614) 752-9340 E-Mail Address: Scott.Ferguson@dbh.ohio.gov

View Audit 394693

Finding 1186985 (2025-017)

Material Weakness 2025

State of Ohio

OH

Internal Control / Segregation of Duties Special Tests & Provisions Subrecipient Monitoring

Corrective Action Plan: The Department agrees with the Auditor’s recommendation to strengthen internal controls over utilization reviews of hospital claims to ensure claims are processed accurately and timely through the Ohio Medicaid Enterprise System Fiscal Intermediary (FI) module. The Department...

Corrective Action Plan: The Department agrees with the Auditor’s recommendation to strengthen internal controls over utilization reviews of hospital claims to ensure claims are processed accurately and timely through the Ohio Medicaid Enterprise System Fiscal Intermediary (FI) module. The Department is addressing the system edits that caused delays and ineffective processing of take-back claims. The recoupment process is in place; however, hospital recoupments are temporarily paused while necessary system testing and provider training are completed. The Department intentionally halted recoupments because system issues prevented hospitals from resubmitting corrected claims after a recoupment occurred. The Department is working with system vendors to update system logic so hospital claims can be processed correctly. The changes are currently in the testing phase, and, once validated, will be implemented statewide. As of February 20, vendors have deployed two system fixes. A hospital provider is now testing claims and confirming these fixes resolved the issues. During testing, an opportunity was identified to clarify requirements for hospital providers and is developing a simplified process document to support them. It is important to note that Surveillance Utilization Reviews (SURS) vendor findings may reflect billing or coding errors that do not always result in incorrect payment. A finding may indicate an overpayment, an underpayment, or no change. When a billing error is identified, hospitals may be permitted to re-bill with corrected information so that the proper payment can be made. Recouping claims before the system logic is corrected could create a financial hardship for hospitals that delivered medically necessary services to eligible individuals. The Department has a monitoring process in place. After final testing and acceptance, the SURS team will send the appropriate files to the vendor for processing. Once the FI vendor processes the file, SURS will receive claim status information and will track these claims to ensure accurate reprocessing. When take-back processing is resumed, recoupments will be staggered to help avoid financial hardship for providers. Anticipated Completion Date for Corrective Action: July 2026 Contact Person Responsible for Corrective Action: Megan Powell Audit Remediation Manager 50 West Town Street, Suite 400, Columbus, Ohio 43215 614-752-3844 megan.powell@medicaid.ohio.gov

View Audit 394693

Finding 1186984 (2025-016)

Material Weakness 2025

State of Ohio

OH

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Subrecipient Monitoring § 200.334

Corrective Action Plan: The Department agrees with the finding and already has a plan underway to resolve the issues. ODM has been working with the Ohio Medicaid Enterprise System Fiscal Intermediary (FI) vendor to document the Third Party Liability (TPL) process and identify needed system updates, ...

Corrective Action Plan: The Department agrees with the finding and already has a plan underway to resolve the issues. ODM has been working with the Ohio Medicaid Enterprise System Fiscal Intermediary (FI) vendor to document the Third Party Liability (TPL) process and identify needed system updates, including importing electronic historical evidence into the FI module and creating new system panels that make TPL information easier for staff to view and work with. Thirteen TPL-related system updates have been identified; eight are already in progress and nearly complete. Once these updates are finished, TPL data including archived historical information will be accessible directly in FI in a familiar format. The Centers for Medicare and Medicaid Services requires states to use commercial off-the-shelf (COTS) products and rely on default tools whenever possible. The FI system initially lacked a data structure that could store all historical TPL information in an accessible way. Because the COTS system does not use the same tracking fields as the prior system, some historical evidence such as Document Control Numbers (DCNs) or supporting insurance documentation could not be viewed in FI during the audit period. ODM is adding new panels and data fields so this historical information can be accessed more easily going forward. TPL is complex, and due to the FI system limitations, monitoring is currently a manual process. The ODM TPL Unit Manager continues to review a sample of verifications to ensure insurance information is accurate and correctly captured in FI. The manager maintains a spreadsheet documenting TPL activity, with all relevant recipient information except the DCN (which is not available in FI). The TPL Unit manually removes or end dates TPL coverage in FI and sends a file to the vendor each week to add TPL information to the Other External Enrollment panel. The Department will take necessary steps to ensure all relevant data elements and documentation are maintained and accessible when major system upgrades or replacements occur, including appropriate retention of historical data. Anticipated Completion Date for Corrective Action: July 2026 Contact Person Responsible for Corrective Action: Name: Megan Powell Title: Audit Remediation Manager Address: 50 West Town Street, Suite 400, Columbus, Ohio 43215 Phone Number: 614-752-3844 E-Mail Address: megan.powell@medicaid.ohio.gov

View Audit 394693

Finding 1186983 (2025-015)

Material Weakness 2025

State of Ohio

OH

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Corrective Action Plan: ODM agrees with the Auditor’s recommendation to re-evaluate its Federal Funding Accountability and Transparency Act (FFATA) reporting procedures to ensure subaward information— including data reported by partner agencies— is entered accurately and on time in SAM.gov. ODM is c...

Corrective Action Plan: ODM agrees with the Auditor’s recommendation to re-evaluate its Federal Funding Accountability and Transparency Act (FFATA) reporting procedures to ensure subaward information— including data reported by partner agencies— is entered accurately and on time in SAM.gov. ODM is committed to timely reporting and is implementing the following actions to address this finding: • Multiple ODM staff now have SAM.gov access. (Completed) • ODM will document FFATA reporting procedures in a formal manual. • ODM is creating a tracking sheet with an approval process to verify that monthly reports from partner agencies are complete and accurate. • ODM has improved communication with subrecipients to ensure subaward information is received and submitted by required deadlines. Anticipated Completion Date for Corrective Action: June 2026 Contact Person Responsible for Corrective Action: Name: Megan Powell Title: Audit Remediation Manager Address: 50 West Town Street, Suite 400, Columbus, Ohio 43215 Phone Number: 614-752-3844 E-Mail Address: megan.powell@medicaid.ohio.gov

View Audit 394693

Finding 1186982 (2025-014)

Material Weakness 2025

State of Ohio

OH

Eligibility Internal Control / Segregation of Duties Subrecipient Monitoring

Corrective Action Plan: The Department agrees with the finding related to the large volume of system alerts and remains committed to ongoing work with our vendor, the Department of Job and Family Services (ODJFS), and the Department of Children and Youth (DCY) to improve the Ohio Benefits eligibilit...

Corrective Action Plan: The Department agrees with the finding related to the large volume of system alerts and remains committed to ongoing work with our vendor, the Department of Job and Family Services (ODJFS), and the Department of Children and Youth (DCY) to improve the Ohio Benefits eligibility system and reduce unnecessary alerts, including those generated through IEVS. These efforts are already showing progress: total incoming alerts decreased from 21.2 million in SFY 2024 to 16.9 million in SFY 2025. ODM has also reduced the average time it takes to clear alerts. Alerts play a key role in program integrity by notifying county caseworkers of important eligibility information that may require action. Anytime new programs are added to the Ohio Benefits system or program rules change, new alerts may be generated. ODM meets every other month with ODJFS to review IEVS-related issues. This collaboration resulted in nine system enhancements in SFY 2025 to reduce unnecessary alert generation. Several enhancements introduced Smart Alert Hierarchy logic, which prevents duplicate alerts by directing an alert to the individual’s first active or pending program in the sequence: Medicaid, SNAP, TANF, Child Care. Notable changes include: • AVS alerts: Only the final alert is generated 15 business days after the request. • SWICA alerts: The threshold for generating alerts increased to $750 per quarter or $250 per month. • PARIS alerts: Alerts are no longer generated when data matches previous records or when information is incomplete; Smart Alert Hierarchy now applies. • New Hire alerts: Alerts are suppressed when employer information has not changed; Smart Alert Hierarchy applies. • BENDEX alerts: Alerts are suppressed when SSA information has not changed; program-specific income limit alerts were retired; Smart Alert Hierarchy applies. • IEVS UCB and SDX alerts: Alerts no longer generate when changes are under $250 per month (up from $25). • IEVS BENDEX alerts: Alerts suppressed for changes under $250 per month (up from $49). • IRS Unearned Income alerts: Alerts suppressed when income differences are within $250 per month of existing records. ODM is continuing to evaluate additional alert-reduction opportunities. Confirmed upcoming system updates include: • Release 5.5 (anticipated June 12, 2026): Automation of verified-upon-receipt SDX interfaces, suppressing alerts after automatic reconciliation. • Release 5.6 (anticipated August 22, 2026): Updated thresholds for IRS Unearned Income alerts. Regarding automation, ODJFS explored using bots to process IEVS alerts. However, federal rules prohibit automation in IEVS processing for SNAP, and because IEVS alerts span multiple programs, automation cannot be applied solely for Medicaid. ODM will continue working with ODJFS to evaluate future options. ODM’s Technical Assistance, Compliance, and County Engagement teams regularly train and support county staff. ODJFS provides a web-based course, available year-round through the County Resources website, to ensure ongoing access despite frequent staffing changes. The training is being updated to be more interactive and modular. The next live annual training event is scheduled for October 2026. The Auditor of State noted that 833,232 of the 1,721,772 IEVS alerts issued during the audit period (48.4%) were not cleared within 45 days. Federal rules require agencies to develop and follow verification procedures (42 CFR 435.945), and state rule OAC 5160:1-1-04 requires agencies to take specific steps to determine eligibility within 45 days. However, clearing an alert in the Ohio Benefits system is not itself a federal or state requirement. ODM agrees counties must improve the administrative step of clearing alerts, but failure to clear an alert does not necessarily mean the information was not reviewed or acted upon in a timely manner. ODM will continue to emphasize the importance of completing this final step. Anticipated Completion Date for Corrective Action: January 2027 Contact Person Responsible for Corrective Action: Megan Powell Audit Remediation Manager 50 West Town Street, Suite 400, Columbus, Ohio 43215 614-752-3844 megan.powell@medicaid.ohio.gov

View Audit 394693

Finding 1186955 (2025-007)

Material Weakness 2025

State of Ohio

OH

Reporting Procurement, Suspension & Debarment Subrecipient Monitoring

Corrective Action Plan: The Department will continue to evaluate its internal controls over the SAM.gov reporting process, by collecting and reporting complete, accurate, and timely information regarding the subawards subject to the Transparency Act. The Department will cross-train employees over th...

Corrective Action Plan: The Department will continue to evaluate its internal controls over the SAM.gov reporting process, by collecting and reporting complete, accurate, and timely information regarding the subawards subject to the Transparency Act. The Department will cross-train employees over the Transparency Act reporting process to ensure the SAM.gov reporting can be performed by various personnel during vacations or with employee turnover. Management will review these procedures to ensure they promote compliance with federal regulations and are operating as intended. Anticipated Completion Date for Corrective Action: June 2026 Contact Person Responsible for Corrective Action: Name: Colin Grisier Title: Senior Manager for Reporting and Compliance Address: 77 South High Street, Columbus, Ohio 43215 Phone Number: 614-446-2625 E-Mail Address: Colin.Grisier@development.ohio.gov

View Audit 394693

Corrective Action Plans

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