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Finding 16049 (2022-066)
Material Weakness 2022
State of Washington C/o Office of Financial Management
WA
Subrecipient Monitoring Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.208 § 200.332 § 200.339 § 200.501 § 200.513
Finding: The Health Care Authority did not have adequate internal controls over and did not comply with federal requirements to ensure subrecipients of the Block Grants for Community Mental Health Services program and the Block Grants for Prevention and Treatment of Substance Abuse program received...
Finding: The Health Care Authority did not have adequate internal controls over and did not comply with federal requirements to ensure subrecipients of the Block Grants for Community Mental Health Services program and the Block Grants for Prevention and Treatment of Substance Abuse program received required single audits, and that it appropriately followed up on findings and issued management decisions. Questioned Costs: Assistance Listing # 93.958 93.958 COVID-19 93.959 93.959 COVID-19 Amount $0 Status: Corrective action in progress Corrective Action: The Authority concurs with the finding. The Authority will: ? Follow established procedures related to the agency-wide monitoring of subrecipients? single audits. ? Issue management decision letters for findings subrecipients received related to programs that are funded by the Authority?s pass-through federal funding. ? Evaluate corrective actions to ensure subrecipients adequately address audit recommendations. Completion Date: Estimated July 2023 Agency Contact: William Sogge, CPA External Audit Liaison PO Box 45502 Olympia, WA 98504-5502 (360) 725-5110 william.sogge@hca.wa.gov
View Audit 23129
Finding 16048 (2022-065)
Material Weakness 2022
State of Washington C/o Office of Financial Management
WA
Subrecipient Monitoring Internal Control / Segregation of Duties
Finding: The Health Care Authority did not have adequate internal controls over and did not comply with requirements to ensure it filed accurate and timely reports required by the Federal Funding Accountability and Transparency Act for the Block Grants for Community Mental Health Services. Questi...
Finding: The Health Care Authority did not have adequate internal controls over and did not comply with requirements to ensure it filed accurate and timely reports required by the Federal Funding Accountability and Transparency Act for the Block Grants for Community Mental Health Services. Questioned Costs: Assistance Listing # 93.958 93.958 COVID-19 Status: Corrective action complete Corrective Action: The Authority finalized procedures across divisions to ensure there are established internal controls over the Federal Funding Accountability and Transparency Act (FFATA) reporting. A workgroup was established and finalized the criteria for when FFATA reports are required. The Authority initiated this process for all subawards beginning July 1, 2022. The Authority implemented the following procedures to ensure compliance with the reporting requirements: ? Office of Contracts and Procurement includes a FFATA form as the last attachment in all subawards and ensures it is complete prior to forwarding it to Grants Accounting. ? Grants Accounting staff have been assigned and received training to routinely monitor FFATA contracts forwarded by the Office of Contracts and Procurement and enter agency information into the FFATA Subaward Reporting System. The implemented procedures were designed to ensure compliance with FFATA reporting requirements. The Authority will continue to provide training to staff involved in the process. Completion Date: July 2022 Agency Contact: William Sogge, CPA External Audit Liaison PO Box 45502 Olympia, WA 98504-5502 (360) 725-5110 william.sogge@hca.wa.gov
View Audit 23129
Finding 16047 (2022-064)
Material Weakness 2022
State of Washington C/o Office of Financial Management
WA
Subrecipient Monitoring
Finding: The Health Care Authority did not have adequate internal controls over level of effort requirements for the Block Grants for Community Mental Health Services program. Questioned Costs: Assistance Listing # 93.958 93.958 COVID-19 Status: Corrective action complete Corrective Actio...
Finding: The Health Care Authority did not have adequate internal controls over level of effort requirements for the Block Grants for Community Mental Health Services program. Questioned Costs: Assistance Listing # 93.958 93.958 COVID-19 Status: Corrective action complete Corrective Action: The Federal Financial Reporting unit updated procedures for preparing the quarterly level of effort tracking workbooks. The procedures were updated to include: ? Accurate and complete expenditure criteria for generating the reports used to prepare the workbooks. ? Required documented review and approval of the quarterly level of effort tracking workbooks. Completion Date: February 2023 Agency Contact: William Sogge, CPA External Audit Liaison PO Box 45502 Olympia, WA 98504-5502 (360) 725-5110 william.sogge@hca.wa.gov
View Audit 23129
Finding 16046 (2022-063)
Material Weakness 2022
State of Washington C/o Office of Financial Management
WA
Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.1 § 200.410 § 200.52
Finding: The Health Care Authority did not have adequate controls over and did not comply with requirements to ensure payments to providers for the Block Grants for Community Mental Health Services were allowable and met period of performance requirements. Questioned Costs: Assistance Listing # ...
Finding: The Health Care Authority did not have adequate controls over and did not comply with requirements to ensure payments to providers for the Block Grants for Community Mental Health Services were allowable and met period of performance requirements. Questioned Costs: Assistance Listing # 93.958 93.958 COVID-19 Amount $8,668,982 Status: Corrective action in progress Corrective Action: The Authority partially concurs with the audit recommendations. The Authority will: ? Maintain all supporting documentation used to calculate the year-end accrual transactions. ? Maintain a workbook to calculate estimated expenditures to be accrued for the fiscal year. The Authority will continue to review payments for allowability and ensure they occur within the grant period. The period of performance of the grant extends beyond the end of the state?s fiscal year. Invoices for the program continue to be received after fiscal year end and the cut-off date for reporting on the Schedule of Expenditures of Federal Awards. The Authority does not concur with the questioned costs and will verify with the grantor that questioned costs do not need to be repaid. Completion Date: Estimated September 2023 Agency Contact: William Sogge, CPA External Audit Liaison PO Box 45502 Olympia, WA 98504-5502 (360) 725-5110 william.sogge@hca.wa.gov
View Audit 23129 Questioned Costs: $1
Finding 16036 (2022-055)
Material Weakness 2022
State of Washington C/o Office of Financial Management
WA
Questioned Costs Allowable Costs / Cost Principles Procurement, Suspension & Debarment § 200.1 § 200.410 § 200.516
Finding: The Health Care Authority did not have adequate internal controls over and did not comply with federal provider eligibility requirements for the Medicaid and Children?s Health Insurance Program. Questioned Costs: Assistance Listing # 93.767 93.767 COVID-19 93.775 93.777 93.777 COVID-...
Finding: The Health Care Authority did not have adequate internal controls over and did not comply with federal provider eligibility requirements for the Medicaid and Children?s Health Insurance Program. Questioned Costs: Assistance Listing # 93.767 93.767 COVID-19 93.775 93.777 93.777 COVID-19 93.778 93.778 COVID-19 Status: Corrective action in progress Corrective Action: The Authority partially concurs with the finding. The Authority agrees that ProviderOne sends revalidation notifications one day after the due date rather than before the due date. A system revision to correct this issue is expected to be in place by the beginning of 2024. The Authority does not concur with the remainder of the audit finding as stated in the description of condition. The auditor did not provide sufficient information for the Authority to review the identified exceptions and associated questioned costs. Due to the lack of information provided, the Authority is unable to agree or disagree with the results of the audit. The Authority will work with the auditor to obtain sufficient supporting information to review the exceptions and questioned costs. Once this process is completed, the Authority will work with the Centers for Medicare & Medicaid Services on finding resolution. The conditions noted in this finding were previously reported in findings 2021-047, 2020-046, 2019-048, 2018-042, 2017-033, and 2016-035. The auditors determined 2016-035 as resolved. Completion Date: Estimated March 2024 Agency Contact: Kari Summerour, CPA External Audit Compliance Manager PO Box 45502 Olympia, WA 98504-5502 (360) 725-5337 Kari.Summerour@hca.wa.gov
View Audit 23129 Questioned Costs: $1
Finding 16035 (2022-054)
Material Weakness 2022
State of Washington C/o Office of Financial Management
WA
Subrecipient Monitoring Special Tests & Provisions Internal Control / Segregation of Duties
Finding: The Health Care Authority did not have adequate internal controls over and did not comply with managed care financial audit requirements. Questioned Costs: Assistance Listing # 93.767 93.767 COVID-19 93.775 93.777 93.777 COVID-19 93.778 93.778 COVID-19 Status: Corrective action com...
Finding: The Health Care Authority did not have adequate internal controls over and did not comply with managed care financial audit requirements. Questioned Costs: Assistance Listing # 93.767 93.767 COVID-19 93.775 93.777 93.777 COVID-19 93.778 93.778 COVID-19 Status: Corrective action complete Corrective Action: The Authority implemented policies and procedures and established a process to: ? Collect audited financial reports annually from managed care organizations. ? Conduct audits of encounter and financial data no less than once every three years. Additionally, the Authority amended managed care contract language to include the following: ? Required managed care organizations to submit audited financial reports annually beginning in fiscal year 2023. ? Directed managed care organizations to follow the required timing and procedures for submitting audited financial reports. ? Clarified that failure to submit reports is sanctionable. The Authority also conducted an encounter validation audit and is conducting a financial report validation audit. These audits are completed in a frequency outlined in federal regulations. The conditions noted in this finding were previously reported in finding 2021-048. Completion Date: May 2022 Agency Contact: Kari Summerour, CPA External Audit Compliance Manager PO Box 45502 Olympia, WA 98504-5502 (360) 725-9586 Kari.Summerour@hca.wa.gov
View Audit 23129
Finding 16034 (2022-053)
Material Weakness 2022
State of Washington C/o Office of Financial Management
WA
Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring § 200.1 § 200.410 § 200.516
Finding: The Health Care Authority did not have adequate internal controls over and did not comply with requirements to ensure clients were eligible for the Children?s Health Insurance Program. Questioned Costs: Assistance Listing # 93.767 93.767 COVID-19 Status: Corrective action not requi...
Finding: The Health Care Authority did not have adequate internal controls over and did not comply with requirements to ensure clients were eligible for the Children?s Health Insurance Program. Questioned Costs: Assistance Listing # 93.767 93.767 COVID-19 Status: Corrective action not required Corrective Action: The Authority does not concur with the finding. The Authority pursued and was notified of approval for the 1115 disaster waiver from the Centers for Medicare & Medicaid Services (CMS). The waiver will approve Children?s Health Insurance Program (CHIP) funding for clients aged 19 and over during the public health emergency, retroactive to March 18, 2020. Once the official approval letter is received from CMS, the issue will be resolved, and the approval letter will be provided to CMS Audit Resolution. The Children?s Health Insurance Program Reauthorization Act (CHIPRA) postpartum period is state-funded and the Authority processes manual journal vouchers to move federal funding to state funding each quarter. For this audit, the auditors did not allow sufficient time for accounting staff to provide the journal vouchers for inclusion in the audit results. The Authority will work with CMS during the audit resolution process and provide the journal vouchers as needed to demonstrate that state funds were used for the postpartum expenditures. Effective July 1, 2022, the Authority added coding to ProviderOne which automates the accounting process for CHIPRA postpartum client funding. The conditions noted in this finding were previously reported in finding 2021-046. Completion Date: Not applicable Agency Contact: Kari Summerour, CPA External Audit Compliance Manager PO Box 45502 Olympia, WA 98504-5502 (360) 725-9586 Kari.Summerour@hca.wa.gov
View Audit 23129 Questioned Costs: $1
Finding 16021 (2022-005)
Significant Deficiency 2022
Harry S. Truman Community Development Corporation
MO
Subrecipient Monitoring Significant Deficiency
2022-05 Recommendation: The Organization is continuing to engage a third-party accounting firm to assist in recording accounting transactions for the Organization. Because the accounting firm has worked all year with the Organization expects the June 30, 2023, and future year-end closings to be pr...
2022-05 Recommendation: The Organization is continuing to engage a third-party accounting firm to assist in recording accounting transactions for the Organization. Because the accounting firm has worked all year with the Organization expects the June 30, 2023, and future year-end closings to be prepared and delivered to the CPA audit firm sooner so that the audit can be submitted to the Clearinghouse well in advance of the required due date. Corrective Action The Organization acknowledges the need for additional preparation and Planned: scheduling in order to allow the external audit to be completed in a timely manner. Anticipated The Organization is currently on pace to meet the Clearinghouse Implementation filing deadline. Date:
View Audit 19588
Finding 16020 (2022-004)
Material Weakness 2022
Harry S. Truman Community Development Corporation
MO
Subrecipient Monitoring Material Weakness
2022-04 Recommendation: The Organization should have a process for determining the proper valuation of donations depending upon the terms of the donation and date of receipt of the donation. Corrective Action We acknowledge that there is currently not a sufficient process in place Planne...
2022-04 Recommendation: The Organization should have a process for determining the proper valuation of donations depending upon the terms of the donation and date of receipt of the donation. Corrective Action We acknowledge that there is currently not a sufficient process in place Planned: to ensure that the value of the organization?s note receivable balances are properly recorded. A policy will be implemented to review the accounting records to ensure that the value of the organization?s note receivables balance properly recorded now that the Organization has staff and an outsourced accounting firm with the knowledge and skills to fulfill this need. Implementation This action plan is for the entity to adopt a policy to regularly review the accounting records and evaluate the value of promissory notes receivable Date: to determine current value of note and review evaluate any possible contingencies of the receivable. This policy is planned to be in place by 12/31/23.
View Audit 19588
Finding 16019 (2022-003)
Material Weakness 2022
Harry S. Truman Community Development Corporation
MO
Subrecipient Monitoring Material Weakness
2022-03 Recommendation: The Organization review its transactions for repairs and maintenance and obtain the fixed assets depreciation schedule in order to properly record real estate transactions. The Organization should review its transactions invoiced but not paid prior to year-end in order to p...
2022-03 Recommendation: The Organization review its transactions for repairs and maintenance and obtain the fixed assets depreciation schedule in order to properly record real estate transactions. The Organization should review its transactions invoiced but not paid prior to year-end in order to properly record accrued liabilities. Corrective Action We acknowledge that there is currently not a sufficient process in place Planned: to ensure that capital expenditures and accounts payable are properly recorded. A policy will be implemented to review the accounting records to ensure that capital expenditures and accounts payable are properly recorded now that the Organizations has staff and an outsourced accounting firm with the knowledge and skills to fulfill this need. Implementation This action plan is for the entity to adopt a policy to review repairs and Date: maintenance activity on a regular basis to determine what amounts need to be capitalized as a fixed asset to ensure proper treatment of activity. The entity will adopt a policy to review expenses invoiced but not yet paid to determine what amounts need to be accrued to ensure proper treatment of activity. This will be implemented by the entity by 12/31/23.
View Audit 19588
Finding 16018 (2022-002)
Material Weakness 2022
Harry S. Truman Community Development Corporation
MO
Subrecipient Monitoring Material Weakness
2022-02 Recommendation: The Organization should obtain a legally binding document prior to recording a debt extinguishment. Corrective Action Planned: We acknowledge and will receive formal documentation that will legally forgive the debt or formalize the promissory note Anticipated ...
2022-02 Recommendation: The Organization should obtain a legally binding document prior to recording a debt extinguishment. Corrective Action Planned: We acknowledge and will receive formal documentation that will legally forgive the debt or formalize the promissory note Anticipated This action plan is ongoing as legally binding debt documentation is Implementation being obtained with continued oversight by management and the Board Date: of Directors.
View Audit 19588
Finding 16017 (2022-001)
Material Weakness 2022
Harry S. Truman Community Development Corporation
MO
Subrecipient Monitoring Material Weakness
2022-01 Recommendation: The Organization should have a process for reviewing prior year balances in their Quickbooks Online accounting software to ensure that they match to the audited financial statements. The organization should refrain from making changes to their financials once financial stat...
2022-01 Recommendation: The Organization should have a process for reviewing prior year balances in their Quickbooks Online accounting software to ensure that they match to the audited financial statements. The organization should refrain from making changes to their financials once financial statements for the period under audit have been issued and closed. Corrective Action Planned: We acknowledge that there is currently not a sufficient process in place to review Quickbooks Online balances. A policy will be implemented to review prior year Quickbooks Online balances to ensure that they match to the audited financial statements now that the Organization has a Fiscal Officer with the knowledge and skills to fulfill this need. Anticipated This action plan is for the entity to adopt a policy to review Quickbooks Implementation Online balances at the end of each year to ensure that they tie to the Date: audited financial statements issued at the end of the year. This will be implemented by the entity by 6/30/23.
View Audit 19588
Finding 16012 (2022-052)
Material Weakness 2022
State of Washington C/o Office of Financial Management
WA
Matching / Level of Effort / Earmarking Subrecipient Monitoring Allowable Costs / Cost Principles
Finding: The Department of Children, Youth, and Families did not have adequate internal controls over level of effort requirements for the Adoption Assistance program. Questioned Costs: Assistance Listing # 93.659 93.659 COVID-19 Status: Corrective action complete Corrective Action: When...
Finding: The Department of Children, Youth, and Families did not have adequate internal controls over level of effort requirements for the Adoption Assistance program. Questioned Costs: Assistance Listing # 93.659 93.659 COVID-19 Status: Corrective action complete Corrective Action: When the auditors issued the prior year finding, the Department had taken the following actions: ? In February 2022, hired a new position to manage the adoption savings program. ? In May 2022: o Reviewed federal grantor?s reporting instructions and guidance with staff involved in the preparation and submission of the financial report. o Reviewed written procedures for tracking and monitoring adoption savings expenditures to ensure compliance with level of effort requirements. o Established monthly meetings between the Child Welfare Program and Cost Allocation and Grant Management Unit staff to review expenditures and level of effort requirements prior to report submission. These meetings help to improve processes for monitoring and verifying adoption savings expenditures. The auditors issued the fiscal year 2021 finding in May 2022, which was 11 months after fiscal year 2022 began. The delay did not allow corrective actions to be developed and implemented timely for fiscal year 2022 and resulted in a repeat finding. The conditions noted in this finding were previously reported in finding 2021-045. Completion Date: May 2022 Agency Contact: Stefanie Niemela Audit Liaison PO Box 40970 Olympia, WA 98504-0970 (360) 725-4402 stefanie.niemela@dcyf.wa.gov
View Audit 23129
Finding 15995 (2022-051)
Material Weakness 2022
State of Washington C/o Office of Financial Management
WA
Subrecipient Monitoring Internal Control / Segregation of Duties Student Financial Aid
Finding: The Department of Children, Youth, and Families did not have adequate internal controls over and did not comply with reporting requirements for the Foster Care program. Questioned Costs: Assistance Listing # 93.658 93.658 COVID-19 Amount $0 Status: Corrective action complete Cor...
Finding: The Department of Children, Youth, and Families did not have adequate internal controls over and did not comply with reporting requirements for the Foster Care program. Questioned Costs: Assistance Listing # 93.658 93.658 COVID-19 Amount $0 Status: Corrective action complete Corrective Action: The Department acknowledges that errors were made in the quarterly reports submitted during the audit period. The errors were identified by the Department and corrected in October 2022. The Department understands accuracy in reporting is vital. To address the audit finding and recommendations, the Department took the following corrective actions: ? The lead worker established three meetings each quarter with the Cost Allocation and Grants Director for processing the quarterly reports: o A pre-meeting to discuss the reporting requirements, o A meeting during the reporting process to review the final report prior to submission, and o A post reporting meeting to discuss any concerns encountered during the reporting process. ? Implemented a data verification process by management prior to submission of the quarterly reports. The Department is committed to improving internal controls over grant management activities and will continue to properly follow the grantor?s published instructions when completing the quarterly reports. Completion Date: October 2022 Agency Contact: Stefanie Niemela Audit Liaison PO Box 40970 Olympia, WA 98504-0970 (360) 725-4402 stefanie.niemela@dcyf.wa.gov
View Audit 23129
Finding 15994 (2022-050)
Material Weakness 2022
State of Washington C/o Office of Financial Management
WA
Subrecipient Monitoring Eligibility Internal Control / Segregation of Duties
Finding: The Department of Children, Youth, and Families did not have adequate internal controls to ensure group care facility employees had cleared background checks before having unsupervised access to children. Questioned Costs: Assistance Listing # 93.658 93.658 COVID-19 Amount $0 Stat...
Finding: The Department of Children, Youth, and Families did not have adequate internal controls to ensure group care facility employees had cleared background checks before having unsupervised access to children. Questioned Costs: Assistance Listing # 93.658 93.658 COVID-19 Amount $0 Status: Corrective action complete Corrective Action: The Department partially concurs with the finding. The Department is committed to ensuring the health, safety, and well-being of all children in our care. As stated in the Effect of Condition on the audit finding, the auditors found all group care facility staff sampled during the audit had a cleared background check prior to working in the facility. While the Department agrees the use of definitions such as ?effective date? and ?start date? in FamLink could be misleading, the Department does not concur internal controls were not adequate to ensure group care facility employees had cleared background checks before having unsupervised access to children. The Department is confident that all staff who work with children and youth have cleared background checks. Effective April 1, 2023, the Department implemented a new process for processing background checks for group care facilities to strengthen internal controls, documentation, and clarification on the ?effective date.? The updated process is outlined below: ? A new form was created with clear instructions for the group care facilities to provide the applicant/employee information, including the background check confirmation code, directly to the Department?s Background Check Unit (BCU). ? The BCU works with the applicant/employee through the fingerprint background check process. ? The results are sent directly to the BCU at which time they complete a child abuse/neglect history check and, if needed, a suitability assessment. The BCU documents the results in FamLink with the date the background check is completed. ? The BCU emails the results to the group care facility and the Department?s Licensing Division (LD) group. If the applicant/employee is cleared and is not a renewal, LD staff adds the applicant/employee to the group care facility in FamLink with the clearance information attached. Completion Date: April 2023 Agency Contact: Stefanie Niemela Audit Liaison PO Box 40970 Olympia, WA 98504-0970 (360) 725-4402 stefanie.niemela@dcyf.wa.gov
View Audit 23129
Finding 15993 (2022-049)
Material Weakness 2022
State of Washington C/o Office of Financial Management
WA
Allowable Costs / Cost Principles Subrecipient Monitoring § 200.430
Finding: The Department of Children, Youth, and Families did not have adequate internal controls over and did not comply with some Public Assistance Cost Allocation Plan requirements. Questioned Costs: Assistance Listing # 93.658 93.658 COVID-19 93.659 93.659 COVID-19 Status: Corrective act...
Finding: The Department of Children, Youth, and Families did not have adequate internal controls over and did not comply with some Public Assistance Cost Allocation Plan requirements. Questioned Costs: Assistance Listing # 93.658 93.658 COVID-19 93.659 93.659 COVID-19 Status: Corrective action complete Corrective Action: The Random Moment Time Study (RMTS) is a federally approved cost allocation methodology to claim allowable federal funds. The Department?s use of the RMTS is included in its Public Assistance Cost Allocation Plan (PACAP) with the federal grantor. The Department maintains that the sampling universe is accurate and complete and complies with federal requirements. There is no known deficiency with the integrity of the RMTS, nor are unallowable costs allocated to federal programs. Effective October 2022, the Department contracted with the University of Massachusetts (UMass) for the design and implementation of the RMTS mechanism. UMass has updated the RMTS instructions for the new quarterly process, which remains in compliance with federal law while alleviating the department-imposed restrictions. It also addresses the auditor?s concerns regarding the internal controls applicable to the RMTS worker types included in the sampling universe. The Department has also taken additional actions to address system limitations caused by high staff turnover rates within the cost pools. These include: ? The Headquarters (HQ) RMTS Coordinator pulls an InfoFamLink worker list report that shows all workers with access to the FamLink system. The list is then reviewed by job class to verify the accuracy of RMTS group assignment and to identify the workers that are eligible to be included in the sample. ? The Cost Allocation and Grants Management Unit pulls a job classification report from the Human Resource Management System (HRMS) at the end of every pay cycle. The HQ RMTS Coordinator compares the HRMS report to the InfoFamLink worker list report to verify if they are eligible to be sampled and properly allocated in HRMS. The HRMS has additional information related to job class to assist in sample eligibility determination and strengthen the internal controls around RMTS samples pulled. ? The HQ RMTS Coordinator pulls a workload report from InfoFamLink to view worker caseloads and primary assignments. This is an additional tool to determine if a worker is eligible and assigned to the correct RMTS sample pool. The Department will continue to maintain internal controls over the monthly update process to ensure the RMTS sampling populations are complete. The Department will also work with the federal partners to ensure continued compliance with the PACAP. The conditions noted in this finding were previously reported in finding 2021-042, 2020-044 and 2019-044. Completion Date: October 2022 Agency Contact: Stefanie Niemela Audit Liaison PO Box 40970 Olympia, WA 98504-0970 (360) 725-4402 stefanie.niemela@dcyf.wa.gov
View Audit 23129
Finding 15992 (2022-048)
Significant Deficiency 2022
State of Washington C/o Office of Financial Management
WA
Subrecipient Monitoring Allowable Costs / Cost Principles Internal Control / Segregation of Duties
Finding: The Department of Children, Youth, and Families did not have adequate internal controls to ensure payments to providers for travel and family visits were allowable and adequately supported for the Foster Care program. Questioned Costs: Assistance Listing # 93.658 93.658 COVID-19 St...
Finding: The Department of Children, Youth, and Families did not have adequate internal controls to ensure payments to providers for travel and family visits were allowable and adequately supported for the Foster Care program. Questioned Costs: Assistance Listing # 93.658 93.658 COVID-19 Status: Corrective action in progress Corrective Action: The Department is committed to strengthening internal controls and complying with grant requirements. In response to the auditor?s recommendations, the Department will work with the Financial and Business Services Division and Foster Care Program to review the fiscal monitoring procedures to ensure payments to providers for travel and family visits are allowable and adequately supported. The conditions noted in this finding were previously reported in finding 2021-040. Completion Date: Estimated December 2023 Agency Contact: Stefanie Niemela Audit Liaison PO Box 40970 Olympia, WA 98504-0970 (360) 725-4402 stefanie.niemela@dcyf.wa.gov
View Audit 23129
Finding 15991 (2022-047)
Material Weakness 2022
State of Washington C/o Office of Financial Management
WA
Subrecipient Monitoring Allowable Costs / Cost Principles Internal Control / Segregation of Duties
Finding: The Department of Children, Youth, and Families did not have adequate controls over and did not comply with certain requirements of its Public Assistance Cost Allocation Plan. Questioned Costs: Assistance Listing # 93.658 93.658 COVID-19 Status: Corrective action complete Correct...
Finding: The Department of Children, Youth, and Families did not have adequate controls over and did not comply with certain requirements of its Public Assistance Cost Allocation Plan. Questioned Costs: Assistance Listing # 93.658 93.658 COVID-19 Status: Corrective action complete Corrective Action: The Department concurs with the finding and is committed to improving internal controls. During July through September 2021, the first three months of the audit period, the Department did not have adequate staffing levels to maintain the business processes for the Public Assistance Cost Allocation Plan (PACAP) cost base for administrative charges. Available staff focused on grant reconciliations and close-out of the prior fiscal year financial transactions. In October 2021, the Department began updating the monthly workbooks in accordance with the approved PACAP. To address the finding and audit recommendations, the Department: ? Reviewed the written base edit form procedures with staff. ? Added reminders for base edit entries to the Cost Allocation and Grants Management Unit calendar. Completion Date: April 2023 Agency Contact: Stefanie Niemela Audit Liaison PO Box 40970 Olympia, WA 98504-0970 (360) 725-4402 stefanie.niemela@dcyf.wa.gov
View Audit 23129
Finding 15987 (2022-040)
Material Weakness 2022
State of Washington C/o Office of Financial Management
WA
Subrecipient Monitoring Reporting Allowable Costs / Cost Principles § 200.208 § 200.332 § 200.339 § 200.501 § 200.513
Finding: The Department of Commerce did not have adequate internal controls over and did not comply with requirements to issue management decisions for audit findings to subrecipients of the Low-Income Home Energy Assistance Program. Questioned Costs: Assistance Listing # 93.568 93.568 COVID-...
Finding: The Department of Commerce did not have adequate internal controls over and did not comply with requirements to issue management decisions for audit findings to subrecipients of the Low-Income Home Energy Assistance Program. Questioned Costs: Assistance Listing # 93.568 93.568 COVID-19 Status: Corrective action complete Corrective Action: The Department?s internal control officer is responsible for completing the monitoring of federal reporting and issuing management decisions for subrecipients who receive federal audit findings for programs funded with the Department?s federal pass-through funding. Beginning in December 2021, the internal control officer documented all findings, corrective action plans, and communication with subrecipients in a monitoring spreadsheet. This enabled the Department to ensure all efforts in monitoring subrecipients were taken. In May 2022, all management decisions were added to the monitoring spreadsheet which documented the Department?s management decisions. To ensure compliance with federal requirements for subrecipient monitoring, the Department has implemented the following process: ? Review all audit findings issued to Department subrecipients. ? Review each subrecipient?s corrective action plan. ? Review and discuss all findings and corrective action plans with subrecipients to identify and understand the basis for the deficiency and planned corrections. ? Create a management decision for each subrecipient finding, receive leadership approval, and formally communicate the decision to our subrecipient. ? All management decisions will be formally communicated to our pass-through subrecipients within the six-month federal deadline. Completion Date: September 2022 Agency Contact: Gena Allen Internal Control Officer PO Box 42525 Olympia, WA 98504-2525 (360) 480-5149 Gena.Allen@Commerce.wa.gov
View Audit 23129
Finding 15986 (2022-039)
Material Weakness 2022
State of Washington C/o Office of Financial Management
WA
Subrecipient Monitoring
Finding: The Department of Commerce did not have adequate internal controls over and did not comply with reporting requirements for the Low-Income Home Energy Assistance Program. Questioned Costs: Assistance Listing # 93.568 93.568 COVID-19 Amount $0 Status: Corrective action complete Co...
Finding: The Department of Commerce did not have adequate internal controls over and did not comply with reporting requirements for the Low-Income Home Energy Assistance Program. Questioned Costs: Assistance Listing # 93.568 93.568 COVID-19 Amount $0 Status: Corrective action complete Corrective Action: The Low-Income Home Energy Assistance Program (LIHEAP) receives awards from one funding source in a typical program year. During fiscal year 2022, the Department received additional COVID Pandemic funds from additional sources. The Department was instructed to keep and track all funds separately. The U.S. Department of Health and Human Services (HHS) issued the Action Transmittal LIHEAP-AT-2022-02 Performance Data Form for Fiscal Year 2021 on March 14, 2022. The Action Transmittal states that the first page of the federal report was to include all Coronavirus Aid, Relief, and Economic Security Act and the American Rescue Plan Act funds as combined and separated out in subsequent pages of the report. To meet reporting requirements, the Department tracked and reported all funds separately for regular LIHEAP funding and additional LIHEAP funding. The reports were reviewed and accepted by HHS and APPRISE, a contractor of HHS. The Department follows the reporting process outlined below: ? Program manager pulls the necessary reports. ? Managing director (MD) reviews reports before submittal. ? Program manager submits reports once MD approval is received. ? Program manager receives notice that the report has been accepted by the funder. ? Program manager saves a copy of the report, documentation, and acceptance. The program manager is working with the HHS contractor, APPRISE, to revise the reporting submission. The conditions noted in this finding were previously reported in finding 2021-032. Completion Date: March 2023 Agency Contact: Gena Allen Internal Control Officer PO Box 42525 Olympia, WA 98504-2525 (360) 480-5149 Gena.Allen@Commerce.wa.gov
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Finding 15985 (2022-038)
Material Weakness 2022
State of Washington C/o Office of Financial Management
WA
Subrecipient Monitoring Matching / Level of Effort / Earmarking
Finding: The Department of Commerce did not have adequate internal controls over and did not comply with requirements to ensure it filed reports required by the Federal Funding Accountability and Transparency Act. Questioned Costs: Assistance Listing # 93.568 93.568 COVID-19 Amount $0 Stat...
Finding: The Department of Commerce did not have adequate internal controls over and did not comply with requirements to ensure it filed reports required by the Federal Funding Accountability and Transparency Act. Questioned Costs: Assistance Listing # 93.568 93.568 COVID-19 Amount $0 Status: Corrective action complete Corrective Action: The Department has two programs that administer the two different program funding activities. Corrective actions are listed separately for each program to reflect slightly different implementation timelines. Low-Income Home Energy Assistance Program (LIHEAP) The program added all current awards to the Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting System and data entry for the sub-awardees was completed as of April 15, 2022. In April 2022, the program implemented the following procedures to strengthen internal controls and to ensure compliance with the reporting requirements: ? Designated the LIHEAP program manager to be responsible for performing the FFATA reporting duties. ? Established a procedure to monitor subawards upon receiving an award letter from the federal grantor, including reviewing incoming amendments and determining if the threshold for FFATA reporting has been reached. ? Stipulated the due date of report submission to be 30 days after the assistant director signs the obligation memo to ensure that the program meets FFATA reporting deadlines. ? Required each award and amendment to be entered separately into the FFATA Subaward Reporting System. The program provided and will continue to provide training to program staff before the annual technical assistance and training conference for sub- grantees. The training consists of the FFATA requirement overview and walkthrough of the Department?s internal FFATA reporting procedures. The program will continue to review the FFATA procedures on an annual basis to ensure compliance with current federal requirements. Corrective action was completed for the Low-Income Home Energy Assistance Program in April 2022. Low-Income Weatherization Program The Low-Income Weatherization Program added all current awards to the FFATA Subaward Reporting System and data entry of the awards was completed as of January 15, 2023. In response to the finding, the program implemented the following procedures to strengthen internal controls and to ensure compliance with the reporting requirements: ? Award letters and funding allocations will be reviewed by the budget team and assistant director before issuing subawards to the weatherization network. ? Added FFATA reporting requirements to the obligation process for contracting funds, which includes an obligation memo that outlines the amounts the program intends to pass through to subrecipients and contractors. ? Designated the Weatherization Program coordinator to be responsible for performing the FFATA reporting duties. ? Established a procedure to monitor subawards upon receiving an award letter from the federal grantor, including reviewing incoming amendments and determining if the threshold for FFATA reporting has been reached. ? Stipulated the due date of report submission to be 30 days after the assistant director signs the obligation memo to ensure that the program meets FFATA reporting deadlines. The program will provide training to all relevant current staff and future staff at the time of onboarding, including supervisors, program managers, and program coordinators. The training will consist of a FFATA requirement overview and walkthrough of the Department?s internal FFATA reporting procedures. The Department will review the FFATA procedures on an annual basis to ensure compliance with current federal requirements. Corrective action was completed for the Low-Income Weatherization Program in January 2023. The conditions noted in this finding were previously reported in finding 2021-031. Completion Date: January 2023 Agency Contact: Gena Allen Internal Control Officer PO Box 42525 Olympia, WA 98504-2525 (360) 480-5149 Gena.Allen@Commerce.wa.gov
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Finding 15981 (2022-037)
Material Weakness 2022
State of Washington C/o Office of Financial Management
WA
Subrecipient Monitoring Internal Control / Segregation of Duties Allowable Costs / Cost Principles
Finding: The Department of Social and Health Services did not have adequate internal controls over and did not comply with requirements to ensure staff properly considered the income information obtained from data matching when determining client eligibility and benefits for the Temporary Assistanc...
Finding: The Department of Social and Health Services did not have adequate internal controls over and did not comply with requirements to ensure staff properly considered the income information obtained from data matching when determining client eligibility and benefits for the Temporary Assistance for Needy Families program. Questioned Costs: Assistance Listing # 93.558 Amount $0 Status: Corrective action not taken Corrective Action: The Department does not concur with the finding. The Department has established processes in place to ensure income information is properly considered during client eligibility and benefits determination for the Temporary Assistance for Needy Families (TANF) Program. During eligibility determination at application intake, the eligibility worker: ? Interviews the client to determine income. ? Compares client reported information and cross matches against the Income Eligibility and Verification System (IEVS) per the Code of Federal Regulations (CFR). ? Resolves discrepancies for all new or previously unverified information received. ? Uses the information to determine if the client income is below the maximum earned income limits for TANF per WAC 388-478-0035. ? Verifies all circumstances as required in WAC 388-490-0005 and follows requirements when discrepancies exist, which include taking appropriate actions if the information is questionable, confusing, or outdated. The Department utilizes Spider, which is a tool that combines several different data matches including IEVS. In addition, the Department uses templates to appropriately and comprehensively document the eligibility determination to ensure consistency, accuracy, and that lean processes are followed. ? The Earned Income Template o Addresses income received within 30 days of the application date and any discrepancies found between the case record, online verification systems, previously projected income, and income type. o Does not require documentation if there is no income reported and when no discrepancy is found in cross matches. ? The Final Narrative Template o Includes completing check boxes to document types of cross matches reviewed during application intake and a summary of the transactions that occurred. In all seven exceptions identified by the auditors, the client?s situation did not require the eligibility workers to use the Earned Income Templates due to: ? No income reported. ? No income found in IEVS and other cross matches. ? No discrepancies. ? No changes within 30 days. The eligibility workers did create documentation using the Final Narrative Template for all seven cases with notation stating: ?Reviewed the following system(s): Spider.? All these actions were consistent and aligned with the Department?s "Standard Remarks and Narrative Documentation? procedures. Alerts are not generated for all income fluctuations but as appropriate when a review and potential action is required. This is to minimize creating unnecessary alerts which would take staff time away from other required and mission-critical actions. The Department asserts that the system is working as designed, which is evidenced by the fact that the Department accurately determined eligibility in all seven cases identified as exceptions by the auditors. The Department will continue to: ? Review IEVS information at application intake and verify and document any discrepancies between what is reported by the household and what is shown in the cross matches. ? Use templates to ensure documentation supports the eligibility decisions. ? Generate alerts when an applicant is budgeted with zero income, but the IEVS data match shows income. ? Use the final narrative documentation template, that includes check boxes, to notate cross matches reviewed during application intake. Completion Date: Not applicable Agency Contact: Rick Meyer External Audit Compliance Manager PO Box 45804 Olympia, WA 98504-5804 (360) 664-6027 Richard.Meyer@dshs.wa.gov
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Finding 15980 (2022-036)
Material Weakness 2022
State of Washington C/o Office of Financial Management
WA
Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring § 200.1 § 200.410 § 200.516
Finding: The Department of Children, Youth, and Families did not have adequate internal controls over and did not comply with client eligibility requirements for child care services paid with the Child Care and Development Fund and Temporary Assistance for Needy Families funds. Questioned Costs:...
Finding: The Department of Children, Youth, and Families did not have adequate internal controls over and did not comply with client eligibility requirements for child care services paid with the Child Care and Development Fund and Temporary Assistance for Needy Families funds. Questioned Costs: Assistance Listing # 93.558 93.575 93.575 COVID-19 93.596 Amount $5,689 $5,078 Status: Corrective action in progress Corrective Action: The Child Care and Development Fund (CCDF) program was previously managed by the Department of Social and Health Services and the Department of Early Learning. Since the program transitioned in 2019, the Department has been making efforts to strengthen internal controls over payments to child care providers and other CCDF grant requirements. In response to the finding, the Department established overpayments and referred them to the Office of Financial Recovery for collection. As part of process and internal control improvements, the Department implemented the Fair Start for Kids Act (FSKA) on October 1, 2021, to simplify rules and expand eligibility. The FSKA: ? Raises the State Median Income threshold, increasing the number of eligible two-parent households. ? Caps copayments at $115 for applicants and $215 for reapplicants, reducing the copay amounts for two-parent households. ? Acts as disincentives for fraud as families are less likely to report the non-custodial parent who is not a household member. The Department continues to review cases for accuracy following these new rules and policies. In September 2022, the Office of Child Care (OCC) released a document to help CCDF lead agencies simplify the format and content of child care assistance applications, which includes guidance on defining, collecting, and verifying eligibility information. The Department continues to follow guidance from OCC to update policies and procedures within the authority under the Revised Code of Washington and Washington Administrative Code. This includes: ? Updating policies and procedures for cases with simplified eligibility such as families experiencing homelessness or families with children receiving protective services. Public Benefit Specialist (PBS) staff received training in the winter of 2022, which included the use of systems data to establish household composition. ? Developing a guide for staff to more effectively use the Employment Security Department (ESD) quarterly reported data for eligibility determinations. The ESD data is directly reported by the employer, secured, and reduces delays in benefits by eliminating the wait for employment verification. It is also simple to use for the PBS staff and the auditors, thereby reducing income calculation errors and removing the need for consumers to provide documentation to support the eligibility determination. This procedural change and training are expected to be completed by the summer of 2023. The conditions noted in this finding were previously reported in findings 2021-035, 2020-039, 2019-032, 2018-030, 2017-026, 2016-023, 2015-026, 2014-026, 2013-017 and 2012-30. Completion Date: Estimated October 2023 Agency Contact: Stefanie Niemela Audit Liaison PO Box 40970 Olympia, WA 98504-0970 (360) 725-4402 stefanie.niemela@dcyf.wa.gov
View Audit 23129 Questioned Costs: $1
Finding 15979 (2022-035)
Material Weakness 2022
State of Washington C/o Office of Financial Management
WA
Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring § 200.1 § 200.403 § 200.410 § 200.53
Finding: The Department of Children, Youth, and Families did not have adequate internal controls over and did not comply with requirements to ensure payments to child care providers paid with Temporary Assistance for Needy Families funds were allowable and properly supported. Questioned Costs: A...
Finding: The Department of Children, Youth, and Families did not have adequate internal controls over and did not comply with requirements to ensure payments to child care providers paid with Temporary Assistance for Needy Families funds were allowable and properly supported. Questioned Costs: Assistance Listing # 93.558 Amount $67,699,429 Status: Corrective action in progress Corrective Action: The Working Connections Child Care (WCCC) program was previously managed by the Department of Social and Health Services (DSHS) and the Department of Early Learning. Since the program transitioned in 2019, the Department has been making efforts to strengthen internal controls over payments to child care providers and other grant requirements. The Department implemented grant-level management of all federal funds, including the Temporary Assistance for Needy Families (TANF) grant. The Department allocated the TANF grant to eligible clients and allowable activities in compliance with 45 CFR 98.67. For the fiscal year 2021 program audit, the State Auditor?s Office (SAO) issued a finding with $32 questioned costs for non-compliance with the CCDF eligibility requirement. No other findings, management letters, or exit items were reported in this compliance area or the cost allocation of funds based on eligibility for the CCDF or TANF grants. Given that eligibility or cost allocation has not been an area of concern, and transfers were processed between TANF and CCDF source of funds with the same eligibility criteria, the Department is assured that TANF funding was spent appropriately within federal regulations. The Department is committed to improving internal controls. The Department does not currently have the resources to develop and maintain the business process redesign, as well as the information technology initiatives necessary to meet the level of assurance recommended by SAO. In response to prior year?s audit recommendations, the Department has submitted a budget request to the Legislature in the 2023-2025 biennial budget for additional resources to process adjustments to include transaction-level data. As part of the audit resolution process, the Department of Health and Human Services (HHS), which oversees the CCDF program at the federal level, reviews all SAO findings and issues management decision letters. The letters will reflect the grantor?s determination of whether an audit finding is sustained, the reasons for the decision, and the required actions by the auditee. When a management decision is issued for the fiscal year 2021 finding, the Department will work with HHS and follow the audit resolution process. Completion Date: Agency Contact: The conditions noted in this finding were previously reported in finding 2021-028. Estimated December 2024 Stefanie Niemela Audit Liaison PO Box 40970 Olympia, WA 98504-0970 (360) 725-4402 stefanie.niemela@dcyf.wa.gov
View Audit 23129 Questioned Costs: $1
Finding 15976 (2022-034)
Material Weakness 2022
State of Washington C/o Office of Financial Management
WA
Subrecipient Monitoring Reporting Equipment & Real Property Management
Finding: The Department of Health did not have adequate internal controls over and did not comply with reporting requirements for the Epidemiology and Laboratory Capacity for Infectious Diseases program. Questioned Costs: Assistance Listing # 93.323 93.323 COVID-19 Status: Corrective action...
Finding: The Department of Health did not have adequate internal controls over and did not comply with reporting 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. For the two reports on which the auditors took exceptions, the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program did discover the errors after the original reports were submitted. The Department notified the Centers for Disease Control and Prevention (CDC) about the reporting errors in February 2022, which was within the reporting period. However, due to a technical issue, the federal reporting system would not allow ELC program staff to input edits to the reports for the months of July through October 2021. After a discussion with CDC, program staff were advised to submit the corrected data of the previous reports via email, which was subsequently accepted by the grantor and the issue was resolved. The Department agrees there needs to be evidence of documented reviews of reports and is implementing steps to ensure review and approval of reports are well documented and retained before final submission to the federal grantor. Completion Date: Estimated December 2023 Agency Contact: Jeff Arbuckle External Audit Manager PO Box 47890 Olympia, WA 98504-7890 (360) 701-0798 Jeff.Arbuckle@doh.wa.gov
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