Corrective Action Plans

Finding 576145 (2025-003)

Significant Deficiency 2025

IN

Cash Management Subrecipient Monitoring Matching / Level of Effort / Earmarking § 200.303

The Agency acknowledges this error and agrees with the recommendations. The Agency provides the additional context that it has been determined that where incorrect drawdowns were made - they were underdrawn, not overdrawn. No drawdowns were determined to include anything beyond known, justifiable, a...

The Agency acknowledges this error and agrees with the recommendations. The Agency provides the additional context that it has been determined that where incorrect drawdowns were made - they were underdrawn, not overdrawn. No drawdowns were determined to include anything beyond known, justifiable, and allowable expenses. Previous T &TA support from the Office of Head Start and monitoring reviews from other fiscal agencies had not previously revealed this concern and recommendations were made to carry out drawdowns in this manner. The Finance department is actively working with the new recommendation from the auditors to use the accounting system (MIP) and to implement a new payroll and reconciliation procedure which will prevent future errors.

View Audit 366061

Finding 572208 (2025-003)

Significant Deficiency 2025

Young Women's Christian Association of Rochester and Monroe County

NY

Procurement, Suspension & Debarment § 200.303 § 200.317 § 200.327

Management will update written procurement policy that conforms with the Uniform Guidance and implement procedures and control processes to retain documentation supporting compliance with major federal program compliance requirements regarding suspension and debarment. Our HUD program currently chec...

Management will update written procurement policy that conforms with the Uniform Guidance and implement procedures and control processes to retain documentation supporting compliance with major federal program compliance requirements regarding suspension and debarment. Our HUD program currently checks certificates of occupancy through the City of Rochester and Towns to ensure that the properties do not have violations. Moving forward, we will also check new landlords and or contractors through the central contractor registry to be following federal requirements regarding suspension and debarment.

View Audit 363333

Finding 1173973 (2024-001)

Material Weakness 2024

River Valley Child Development Services

WV

Reporting § 200.303 § 200.502 § 200.510

2024-001 – SEFA REPORTING Recommendation: We recommend that the Organization implement additional controls over financial reporting, including the SEFA, to ensure accuracy of financial data. Action Taken: • RVCDS will utilize a checklist, updated monthly by the Director of Finance, to track federal ...

2024-001 – SEFA REPORTING Recommendation: We recommend that the Organization implement additional controls over financial reporting, including the SEFA, to ensure accuracy of financial data. Action Taken: • RVCDS will utilize a checklist, updated monthly by the Director of Finance, to track federal awards received. o The checklist will be reviewed quarterly by the Compliance Specialist and/or Director of Compliance. • The Director of Finance will complete a reconciliation between grant records and the general ledger quarterly to ensure all federal awards are captured. o Reconciliation reports will be reviewed by the Executive Director. o The Compliance Specialist and the Director of Compliance will review the reconciliation reports each quarter for accuracy. • A SEFA checklist will be created that includes assigned monthly, quarterly and year end responsibilities. The checklist will indicate each position’s assigned responsibilities and due dates for entries and compliance reviews. • The following staff will attend training on SEFA requirements under 2 CFR 200.510(b): o Executive Director o Director of Operations o Director of Finance o Director of Compliance o Compliance Specialist o Finance Clerks

View Audit 387607

Finding 1173972 (2024-001)

Material Weakness 2024

Town of Plainville

MA

Reporting Significant Deficiency Internal Control / Segregation of Duties § 200.303

Coronavirus State and Local Fiscal Recovery Funds (SLFRF) - Assistance Listing No. 21.027 Recommendation: We recommend the Town should implement stronger review and reconciliation procedures at quarter-end to ensure all expenses are captured in the correct reporting period. Consider automated checks...

Coronavirus State and Local Fiscal Recovery Funds (SLFRF) - Assistance Listing No. 21.027 Recommendation: We recommend the Town should implement stronger review and reconciliation procedures at quarter-end to ensure all expenses are captured in the correct reporting period. Consider automated checks or exception reports to identify unrecorded transactions before closing. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Town determined this finding resulted from an isolated oversight in which a single expense was inadvertently omitted from the applicable quarter and was recorded in the subsequent quarter once identified. In response, the Town has strengthened quarter-end review and reconciliation procedures, including enhanced supervisory review, to help ensure all expenses are recorded in the proper reporting period before reports are finalized. Name(s} of the contact person(s) responsible for corrective action: Julie Hebert, Assistant Town Administrator/Finance Director Planned completion date for corrective action plan: January 1, 2026.

View Audit 387603

Finding 1173581 (2024-006)

Material Weakness 2024

Faribault County

MN

Material Weakness Reporting Internal Control / Segregation of Duties § 200.303

Finding Number: 2024-006 Finding Title: Reporting Program: 21.027 COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Name of Contact Person Responsible for Corrective Action: Charles Schrader, Auditor / Treasurer Corrective Action Planned: Faribault County will implement procedures to ensu...

Finding Number: 2024-006 Finding Title: Reporting Program: 21.027 COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Name of Contact Person Responsible for Corrective Action: Charles Schrader, Auditor / Treasurer Corrective Action Planned: Faribault County will implement procedures to ensure federal program reports are completed accurately. This includes consulting reporting instructions provided by grantor agencies and seeking clarification from grantors when needed. Anticipated Completion Date: January 31, 2026

View Audit 387300

Finding 1173580 (2024-005)

Material Weakness 2024

Faribault County

MN

Procurement, Suspension & Debarment § 200.303

Finding Number: 2024-005 Finding Title: Suspension and Debarment Program: 21.027 COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Name of Contact Person Responsible for Corrective Action: Charles Schrader, Auditor / Treasurer Corrective Action Planned: Faribault County will implement pro...

Finding Number: 2024-005 Finding Title: Suspension and Debarment Program: 21.027 COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Name of Contact Person Responsible for Corrective Action: Charles Schrader, Auditor / Treasurer Corrective Action Planned: Faribault County will implement procedures to ensure documentation is maintained verifying that vendors are not debarred, suspended, or otherwise excluded from conducting business with the County. This verification will be completed and documented prior to entering into any covered transaction. Anticipated Completion Date: January 31, 2026

View Audit 387300

Finding 1173579 (2024-004)

Material Weakness 2024

Faribault County

MN

Procurement, Suspension & Debarment § 200.303 § 200.318

Finding Number: 2024-004 Finding Title: Procurement and Suspension and Debarment Program: 20.205 Highway Planning and Construction Name of Contact Person Responsible for Corrective Action: Jennifer Luhmann & April Wellman Corrective Action Planned: Faribault County Public Works will ensure all fisca...

Finding Number: 2024-004 Finding Title: Procurement and Suspension and Debarment Program: 20.205 Highway Planning and Construction Name of Contact Person Responsible for Corrective Action: Jennifer Luhmann & April Wellman Corrective Action Planned: Faribault County Public Works will ensure all fiscally sponsored project files contain required documentation as stated in U.S. Code of Federal Regulations 200.318(i) and 180.300. Anticipated Completion Date: December 31, 2025

View Audit 387300

Finding 1173390 (2024-004)

Material Weakness 2024

Jackson County

OH

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303

Timesheets will be signed off on by the Health Commissioner or by the department director (Nursing, Environmental Health, Community Health, Administration). Staff will be required to present the timesheets to their supervisor before turning them in for processing. All unsigned timesheets will be ret...

Timesheets will be signed off on by the Health Commissioner or by the department director (Nursing, Environmental Health, Community Health, Administration). Staff will be required to present the timesheets to their supervisor before turning them in for processing. All unsigned timesheets will be returned to the department director and will not be processed until signed.

View Audit 387072

Finding 1173252 (2024-003)

Material Weakness 2024

Morton County

ND

Procurement, Suspension & Debarment § 200.214 § 200.303

Condition: Morton County did not have documented policies in place to verify that vendors receiving federal funds were not suspended or debarred from participation in federal programs. During the audit period, the County did not perform checks of the federal System for Award Management (SAM.gov) or ...

Condition: Morton County did not have documented policies in place to verify that vendors receiving federal funds were not suspended or debarred from participation in federal programs. During the audit period, the County did not perform checks of the federal System for Award Management (SAM.gov) or obtain certifications from vendors to demonstrate compliance with federal suspension and debarment requirements. Management’s Response: We Agree. We will review our current procedures and policies and ensure policies in place include a review of vendors to ensure they are not suspended or debarred. Anticipated Completion Date: FY 2025

View Audit 386760

Finding 1173251 (2024-002)

Material Weakness 2024

Morton County

ND

Reporting Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

Condition: Morton County did not properly report expenditures on the March 31, 2024, Project and Expenditure Report for the Coronavirus State and Local Fiscal Recovery Funds program. The total cumulative expenditures were understated by $233,268. Management’s Response: We Agree. We will ensure futur...

Condition: Morton County did not properly report expenditures on the March 31, 2024, Project and Expenditure Report for the Coronavirus State and Local Fiscal Recovery Funds program. The total cumulative expenditures were understated by $233,268. Management’s Response: We Agree. We will ensure future project and expenditure reports have correct and accurate amounts submitted. Anticipated Completion Date: FY 2025

View Audit 386760

Finding 1172949 (2024-002)

Material Weakness 2024

Lord's Outreach Ministries

LA

Internal Control / Segregation of Duties Procurement, Suspension & Debarment § 200.303

We acknowledge the audit finding and appreciate the opportunity to strengthen our internal control environment. We will work to establish documented policies and procedures. We will also implement a software system in our operations to adequately account for our federal award activities.

View Audit 386350

Finding 1172813 (2024-008)

Material Weakness 2024

Carthage Elementary School District No. 317

IL

Procurement, Suspension & Debarment Cash Management Reporting § 200.303

Condition: The board of education designated a limited number of individuals to authorize transactions. However, a signature stamp with the signatures of the board designated individuals was available for use by non-designated individuals. Plan: The District will stop the use of signature stamps to ...

Condition: The board of education designated a limited number of individuals to authorize transactions. However, a signature stamp with the signatures of the board designated individuals was available for use by non-designated individuals. Plan: The District will stop the use of signature stamps to approve purchase orders and sign payment remittances. Anticipated date of completion: June 30, 2026. Name of contact person: Dustin Day, Superintendent. Management response: We no longer use signature stamps. All purchase orders and payment remittances are signed manually by the designated individual.

View Audit 386141

Finding 1172672 (2024-030)

Material Weakness 2024

Maryland Water Infrastructure Financing Agency

MD

Cash Management Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

Higher Education Institutional Aid– Assistance Listing No. 84.031 Condition: The institution did not have effective internal controls over cash management. Recommendation: We recommend the institution review and implement their internal controls and procedures over cash management so that expenditur...

Higher Education Institutional Aid– Assistance Listing No. 84.031 Condition: The institution did not have effective internal controls over cash management. Recommendation: We recommend the institution review and implement their internal controls and procedures over cash management so that expenditures are being properly tracked, reconciled, and reviewed. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Drawdowns are currently prepared by one individual and reviewed by separate individual, however the supporting documentation does not consistently reflect that two individuals were involved in the drawdown; the procedures will require the sign off of both the preparer and the reviewer on the draw down documentation. Name(s) of the contact person(s) responsible for corrective action: Jeff Copeland Planned completion date for corrective action plan: March 31, 2025

View Audit 385911

Finding 1172671 (2024-029)

Material Weakness 2024

Maryland Water Infrastructure Financing Agency

MD

Subrecipient Monitoring Material Weakness Reporting § 200.303

Department of Health and Human Services (DHHS) Maryland Department of Health respectfully submits the following corrective action plan for the year ended June 30, 2024. Audit period: July 1, 2023 – June 30, 2024 The findings from the schedule of findings and questioned costs are discussed below. The...

Department of Health and Human Services (DHHS) Maryland Department of Health respectfully submits the following corrective action plan for the year ended June 30, 2024. Audit period: July 1, 2023 – June 30, 2024 The findings from the schedule of findings and questioned costs are discussed below. The finding is numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS Maryland Department of Health

View Audit 385911

Finding 1172669 (2024-028)

Material Weakness 2024

Maryland Water Infrastructure Financing Agency

MD

Subrecipient Monitoring Material Weakness Reporting § 200.303

U.S. Department of Health and Human Services (DHHS) Maryland Department of Health respectfully submits the following corrective action plan for the year ended June 30, 2024. Audit period: July 1, 2023 – June 30, 2024 The findings from the schedule of findings and questioned costs are discussed below...

U.S. Department of Health and Human Services (DHHS) Maryland Department of Health respectfully submits the following corrective action plan for the year ended June 30, 2024. Audit period: July 1, 2023 – June 30, 2024 The findings from the schedule of findings and questioned costs are discussed below. The finding is numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS Maryland Department of Health pioid-STR – Assistance Listing No. 93.788 Recommendation: We recommend the Department review and enhance internal controls and procedures to ensure that all required subawards are reported timely and accurately to FSRS no later than the end of the month following the month of issuance. Explanation of disagreement with audit finding:

View Audit 385911

Finding 1172667 (2024-027)

Material Weakness 2024

Maryland Water Infrastructure Financing Agency

MD

Special Tests & Provisions Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

U.S. Department of Health and Human Services (DHHS) Maryland Department of Health respectfully submits the following corrective action plan for the year ended June 30, 2024. Audit period: July 1, 2023 – June 30, 2024 The findings from the schedule of findings and questioned costs are discussed below...

U.S. Department of Health and Human Services (DHHS) Maryland Department of Health respectfully submits the following corrective action plan for the year ended June 30, 2024. Audit period: July 1, 2023 – June 30, 2024 The findings from the schedule of findings and questioned costs are discussed below. The finding is numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS Maryland Department of Health 20XX-XXX Medicaid Cluster – Assistance Listing No. 93.775, 93.777, 93.778 Children Health Insurance Program – Assistance Listing No. 93.767 Recommendation: We recommend that the Department enhance its procedures and internal controls to ensure that overpayments are reported to CMS either in the quarter in which the recovery is made or in the quarter in which the one-year period following discovery ends, whichever is earlier. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Name(s) of the contact person(s) responsible for corrective action: Planned completion date for corrective action plan 20XX-XXX Medicaid Cluster – Assistance Listing No. 93.775, 93.777, 93.778 Recommendation: We recommend that the Department enhance its procedures and internal controls to ensure that RAC desk and field audits are performed timely and that overpayments are recouped. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding:. #1: The Department will direct the RAC vendor to begin all new audits using the current universe of available claims from MMIS II including claims from calendar years 2022-2024. This will ensure timely performance of audits and that overpayments are recouped. The Department will direct the current vendor to request the parameters for the claims from the RAC Contract Monitor and support in the transfer of these claims, so that the RAC vendor may begin including them in new audits that begin after April 1, 2025 through the end of their contract. #2: In addition, the RAC Contract Monitor will work with the Office of Contract Management and Procurement (OCMP) to determine if a contract modification is also needed/recommended to ensure timeliness of claims reviewed in RAC audits going forward, and if so, execute the needed contract modification. #3: Finally, the requirement to audit the most recent available claims will be included as language in the new Request for Proposals (RFP) for a RAC vendor that is expected to be issued in 2025. This RFP will be a competitive procurement to select the next contracted RAC vendor, and as such, will ensure this requirement for timely auditing of providers is maintained going forward regardless of which vendor is selected. Name(s) of the contact person(s) responsible for corrective action: Sandy Kick, Director, OMBM and Lynn Price, RAC Contract Monitor Planned completion date for corrective action plan: #1 & #2: June 30, 2025; #3: December 30, 2025 (expected to issue RFP). If the U.S DHHS has questions regarding this plan, please call Sandy Kick at 410-767-5248 or Lynn Price at (667) 208-0776.

View Audit 385911

Finding 1172662 (2024-026)

Material Weakness 2024

Maryland Water Infrastructure Financing Agency

MD

Reporting Special Tests & Provisions Significant Deficiency § 200.303

Medicaid Cluster – Assistance Listing No. 93.775, 93.777, 93.778 Children Health Insurance Program – Assistance Listing No. 93.767 Recommendation: We recommend that the Department enhance its procedures and internal controls to ensure that overpayments are reported to CMS either in the quarter in wh...

Medicaid Cluster – Assistance Listing No. 93.775, 93.777, 93.778 Children Health Insurance Program – Assistance Listing No. 93.767 Recommendation: We recommend that the Department enhance its procedures and internal controls to ensure that overpayments are reported to CMS either in the quarter in which the recovery is made or in the quarter in which the one-year period following discovery ends, whichever is earlier. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management has engaged a third-party consultant to create procedures to ensure that a reconciliation is performed quarterly prior to submission of the CMS-64. A current draft of the procedure is under review. Name(s) of the contact person(s) responsible for corrective action: Jennifer Maher, CFO Healthcare Financing and Medicaid Program and Angeline Palank, Deputy

View Audit 385911

Finding 1172656 (2024-025)

Material Weakness 2024

Maryland Water Infrastructure Financing Agency

MD

Allowable Costs / Cost Principles Subrecipient Monitoring Material Weakness § 200.303 § 200.308 § 200.309 § 200.403

U.S. Department of Health and Human Services Department of Human Services respectfully submits the following corrective action plan for the year ended June 30, 2024. Audit period: July 1, 2023 - June 30, 2024 The findings from the schedule of findings and questioned costs are discussed below. The fi...

U.S. Department of Health and Human Services Department of Human Services respectfully submits the following corrective action plan for the year ended June 30, 2024. Audit period: July 1, 2023 - June 30, 2024 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS Department of Human Services Low-Income Home Energy Assistance Program – Assistance Listing No. 93.568 Recommendation: The Department should review and enhance its procedures and internal controls to ensure that it charges expenditures to the program that are incurred within an award’s allowable period of performance. Explanation of disagreement with audit finding: No disagreement. Action taken in response to finding: The Department has made changes in the Office of Budget and Finance Leadership team and continues to do so at every level. The Department will review and enhance its procedures and internal controls to ensure that it charges expenditures to the program that are incurred within an award’s allowable period of performance. Currently, expenditures are recorded in the State’s Financial Management Information System (FMIS) with program cost accounting codes used to identify the funding source(s) for each activity. The system-generated report summarizes the information and includes the effective date of the activity. In turn, this same report is used to run the cost allocation to properly charge the exact costs to the funding source. Currently information is manually inputted into multiple spreadsheets to prepare the federal reports resulting in the possibility for errors. This significantly impedes the accuracy of the data being reported to federal grants and the provision of supporting documentation. As such, the Department will partner with external consultants to develop a better and more seamless recording structure for grant expenditures to the general ledger. This structure will require quarterly review by the Deputy Cost Allocation Revenue Management Director (CARM), the Cost Allocation Revenue Management Director, and the Deputy Chief Financial Officer. The Department will create a database and document repository to track the submission and reconciliation for federal grant reporting. The document repository will include the FMIS generated report and the cost allocation results table. Upon submission to the federal grant

View Audit 385911

Finding 1172655 (2024-024)

Material Weakness 2024

Maryland Water Infrastructure Financing Agency

MD

Reporting § 200.303 § 200.502 § 200.510

Refugee and Entrant Assistance State Administered Programs – Assistance Listing No. 93.566 Recommendation: We recommend that the Department review and enhance its reporting procedures and internal controls to ensure that expenditures reported on the SEFA are accurate Explanation of disagreement with...

Refugee and Entrant Assistance State Administered Programs – Assistance Listing No. 93.566 Recommendation: We recommend that the Department review and enhance its reporting procedures and internal controls to ensure that expenditures reported on the SEFA are accurate Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Department has made changes in the Office of Budget and Finance Leadership team and continues to do so at every level. The Department will review and enhance its reporting procedures and internal controls to ensure that expenditures reported on the SEFA are accurate. Currently, expenditures are recorded in the State’s Financial Management Information System (FMIS) with program cost accounting codes used to identify the funding source(s) for each activity. The system-generated report summarizes the information and includes the effective date of the activity. In turn, this same report is used to run the cost allocation to charge the exact costs to the funding source properly. Currently, information is manually inputted into multiple spreadsheets to prepare the federal reports and SEFA resulting in the possibility for errors. This significantly impedes the accuracy of the data being reported to federal grants and the provision of supporting documentation. As such, the Department will partner with external consultants to develop a better and more seamless recording structure for grant expenditures to the general ledger. This structure will require quarterly review by the Deputy Cost Allocation Revenue Management Director (CARM), the Cost Allocation Revenue Management Director, and the Deputy Chief Financial Officer. The Department will create a database and document repository to track the submission and reconciliation for federal grant reporting. The document repository will include the FMIS generated report and the cost allocation results table. Upon submission to the federal grant systems, the Deputy Director and or the Director of CARM will perform a thorough review of the material. These persons will insert their signature confirming the accuracy of the information reported to the General Accounting Division (GAD). Name(s) of the contact person(s) responsible for corrective action: Latanya Scott-Ward, Acting Director of Cost Allocation and Revenue Management, and Jessica Smith, Acting Chief Financial Officer. Planned completion date for corrective action plan: December 2025

View Audit 385911

Finding 1172654 (2024-023)

Material Weakness 2024

Maryland Water Infrastructure Financing Agency

MD

Allowable Costs / Cost Principles Subrecipient Monitoring Material Weakness § 200.303 § 200.308 § 200.309 § 200.403

U.S. Department of Education (USDE) Maryland State Department of Education respectfully submits the following corrective action plan for the year ended June 30, 2024. Audit period: July 1, 2023-June 30, 2024 The findings from the schedule of findings and questioned costs are discussed below. Finding...

U.S. Department of Education (USDE) Maryland State Department of Education respectfully submits the following corrective action plan for the year ended June 30, 2024. Audit period: July 1, 2023-June 30, 2024 The findings from the schedule of findings and questioned costs are discussed below. Finding is numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS Maryland State Department of Education 2024-023 Special Education Cluster– Assistance Listing No. 84.027, 84.173 Recommendation: The Department should review and enhance its procedures and internal controls to ensure that it charges expenditures to the program that are incurred within an award’s allowable period of performance. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: MSDE will review and enhance its Standard Operating Procedures (SOPs) and internal controls to ensure that it charges expenditures (including accounts payable and payroll) to Federal programs that are incurred within an award’s allowable period of performance. Name(s) of the contact person(s) responsible for corrective action: Neeta Gandhi Executive Director Office of Program Fiscal Operations and Local Strategic Finance Jenna Meinl Director Office of Procurement and Contract Management Planned completion date for corrective action plan: June 30, 2025 If the USDE has questions regarding this plan, please call Patricia Ramallosa at 410- 767-0103. Page 2 Approval of Response to the CLA Findings and Recommendations: Document Version Approval Date Approved by Signature 1.0 Mar 29, 2025 Neeta Gandhi, Executive Director-Office of Program Fiscal Operations & Local Strategic Finance Mar 29, 2025 Jenna Meinl, Director-Office of Procurement and Contract Management Mar 29, 2025 Donna Gunning, Assistant Superintendent of Financial Policy, Planning, Operations & Strategy Mar 29, 2025 Shawn Rushing, Assistant Superintendent of Administration Mar 29, 2025 Krishnanda Tallur, Deputy Superintendent of Finance and Operations

View Audit 385911

Finding 1172650 (2024-022)

Material Weakness 2024

Maryland Water Infrastructure Financing Agency

MD

Procurement, Suspension & Debarment § 200.213 § 200.303

Higher Education Institutional Aid – Assistance Listing No. 84.031 Condition: Time and Effort documentation were not being documented and reviewed timely. Recommendation: We recommend that the Institution strengthen its internal controls to ensure that Time and Effort are documented, expenditures ar...

Higher Education Institutional Aid – Assistance Listing No. 84.031 Condition: Time and Effort documentation were not being documented and reviewed timely. Recommendation: We recommend that the Institution strengthen its internal controls to ensure that Time and Effort are documented, expenditures are reviewed and adjusted for, if necessary, in a timely manner. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: In June 2024, we successfully implemented a new ERP system designed to automate the documentation of Time and Effort. This system streamlines the process by capturing and organizing data more efficiently, reducing manual effort and enhancing accuracy. As part of the implementation, we have established a process for regular reviews and adjustments of expenditures, ensuring ongoing compliance with regulatory requirements and maintaining the integrity of financial records. We are providing comprehensive training for relevant staff members, focusing on how to utilize the new system effectively. This training will ensure that documentation is completed in a timely, accurate, and consistent manner, minimizing the risk of errors and improving overall operational efficiency. Moving forward, we will continue to monitor the system's performance and provide ongoing support to ensure its success. Name(s) of the contact person(s) responsible for corrective action: Miliani Sinclair Planned completion date for corrective action plan: April 2025 igher Education Institutional Aid– Assistance Listing No. 84.031 Condition: Coppin State did not determine the suspension and debarment status on vendors with expenditures exceeding $25,000 during the fiscal year as required by federal regulations. Recommendation: The University should evaluate their current procedures and determine if they are adequate to prevent the finding from reoccurring. Policies and procedures should reiterate the three options for determining suspension and debarment status listed in 2 CFR 180.300. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Coppin State University has implemented a process as of May 2023 to ensure the SAMs.gov exclusion website is reviewed to determine the suspension and debarment status of its vendors, and documentation of that review is maintained. We will review SAM.Gov for expenditures exceeding $25,000 during the fiscal year as required by federal regulations. Name(s) of the contact person(s) responsible for corrective action: Thomas Dawson, AVP Procurement and Business Services Planned completion date for corrective action plan: The process to address the current finding will be implemented April 2025. Higher Education Institutional Aid– Assistance Listing No. 84.031 Condition: Morgan State University did not determine the suspension and debarment status on vendors with expenditures exceeding $25,000 during the fiscal year as required by federal regulations. Recommendation: The University should evaluate their current procedures and determine if they are adequate to prevent the finding from reoccurring. Policies and procedures should reiterate the three options for determining suspension and debarment status listed in 2 CFR 180.300. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding The Procurement department is testing that vendors are not listed as suspended or debarred, however no documentation was retained as proof. As a result, procedures will be expanded to specify the documentation process to demonstrate compliance with the Federal regulations. The procedure will emphasize the importance of a time stamp from the SAM.GOV verification. Name(s) of the contact person(s) responsible for corrective action: Nehemiah Yisrael Planned completion date for corrective action plan: April 11, 2025 igher Education Institutional Aid– Assistance Listing No. 84.031 Condition: University of Maryland Eastern Shore did not determine the suspension and debarment status on vendors with expenditures exceeding $25,000 during the fiscal year as required by federal regulations. Recommendation: The University should evaluate their current procedures and determine if they are adequate to prevent the finding from reoccurring. Policies and procedures should reiterate the three options for determining suspension and debarment status listed in 2 CFR 180.300. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: UMES procurement office has updated its policy and procedures to implement the recommendation from the audit finding. UMES procurement office will adhere and follow the steps laid out in 2 CFR 180.300 which states an entity may determine suspension and debarment status by:(a) Checking SAM Exclusions; or (b) Collecting a certification from that person; or (c) Adding a clause or condition to the covered transaction with that person.

View Audit 385911

Finding 1172649 (2024-021)

Material Weakness 2024

Maryland Water Infrastructure Financing Agency

MD

Matching / Level of Effort / Earmarking § 200.300 § 200.303 § 200.306 § 200.309 § 200.403

Higher Education Institutional Aid – Assistance Listing No. 84.031 Condition: The Institution did not adjust the employee’s payroll costs to reflect the reported effort. We noted that the actual time and effort charged to the grant did not agree to the time and effort report. Recommendation: We reco...

Higher Education Institutional Aid – Assistance Listing No. 84.031 Condition: The Institution did not adjust the employee’s payroll costs to reflect the reported effort. We noted that the actual time and effort charged to the grant did not agree to the time and effort report. Recommendation: We recommend that the Institution strengthen its internal controls to ensure expenditures are reviewed and adjusted for, if necessary, in a timely manner. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: As a corrective action, Coppin State will complete the implementation of the following: 1. Award PI will provide training regarding proper submission of Time and Effort Reports. 2. Award PI will review distribution of time and percentage. 3. Award PI will review compensation and fringe benefits. 4. Award PI will approve Time and Effort Reports and route to the Payroll Office. 5. Award PI with the support of the Controller will obtain the appropriate role in Workday that allows for the review and confirmation of approved payroll allocations and adjustments.

View Audit 385911

Finding 1172648 (2024-020)

Material Weakness 2024

Maryland Water Infrastructure Financing Agency

MD

Matching / Level of Effort / Earmarking § 200.300 § 200.303 § 200.306 § 200.309 § 200.403

Higher Education Institutional Aid – Assistance Listing No. 84.031 Condition: Time and Effort documentation were not being documented and reviewed timely. Recommendation: We recommend that the Institution strengthen its internal controls to ensure that Time and Effort are documented, expenditures ar...

Higher Education Institutional Aid – Assistance Listing No. 84.031 Condition: Time and Effort documentation were not being documented and reviewed timely. Recommendation: We recommend that the Institution strengthen its internal controls to ensure that Time and Effort are documented, expenditures are reviewed and adjusted for, if necessary, in a timely manner. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: In June 2024, we successfully implemented a new ERP system designed to automate the documentation of Time and Effort. This system streamlines the process by capturing and organizing data more efficiently, reducing manual effort and enhancing accuracy. As part of the implementation, we have established a process for regular reviews and adjustments of expenditures, ensuring ongoing compliance with regulatory requirements and maintaining the integrity of financial records. We are providing comprehensive training for relevant staff members, focusing on how to utilize the new system effectively. This training will ensure that documentation is completed in a timely, accurate, and consistent manner, minimizing the risk of errors and improving overall operational efficiency. Moving forward, we will continue to monitor the system's performance and provide ongoing support to ensure its success. Name(s) of the contact person(s) responsible for corrective action: Miliani Sinclair Planned completion date for corrective action plan: April 2025

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Finding 1172647 (2024-019)

Material Weakness 2024

Maryland Water Infrastructure Financing Agency

MD

Special Tests & Provisions Material Weakness Reporting § 200.303

U.S Department of Education (USDE) Maryland State Department of Education respectfully submits the following corrective action plan for the year ended June 30, 2024. Audit period: July 1, 2023-June 30, 2024 The findings from the schedule of findings and questioned costs are discussed below. Findings...

U.S Department of Education (USDE) Maryland State Department of Education respectfully submits the following corrective action plan for the year ended June 30, 2024. Audit period: July 1, 2023-June 30, 2024 The findings from the schedule of findings and questioned costs are discussed below. Findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS Maryland State Department of Education 2024-031 Title I- Part A– Assistance Listing No. 84.010 Recommendation: We recommend that the Department review the federal requirements for determining a subrecipient vs a contractor. Their procedures should be updated to ensure that contractual relationship with the vendors are documented in accordance with the federal contracting requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: MSDE will review federal requirements for determining a subrecipient vs a contractor. The current MSDE procedures will be reviewed for accuracy and modification. Name(s) of the contact person(s) responsible for corrective action: Mary Gable Assistant State Superintendent Division of Student Support and Federal Programs Office (410) 767-0472 Email : Mary.gable@maryland.gov

View Audit 385911

Finding 1172646 (2024-018)

Material Weakness 2024

Maryland Water Infrastructure Financing Agency

MD

Subrecipient Monitoring Material Weakness Reporting § 200.303

U.S. Department of Education (USDE) Maryland State Department of Education respectfully submits the following corrective action plan for the year ended June 30, 2024. Audit period: July 1, 2023-June 30, 2024 The findings from the schedule of findings and questioned costs are discussed below. Finding...

U.S. Department of Education (USDE) Maryland State Department of Education respectfully submits the following corrective action plan for the year ended June 30, 2024. Audit period: July 1, 2023-June 30, 2024 The findings from the schedule of findings and questioned costs are discussed below. Finding is numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS Maryland State Department of Education 2024-018 COVID-19 – Education Stabilization Fund – Assistance Listing No. 84.425 C, D, R, U, V W Recommendation: We recommend the Department review and enhance internal controls and procedures to ensure that all required subawards are reported timely and accurately to FSRS no later than the end of the month following the month of issuance. Explanation of disagreement with audit finding: MSDE disagrees with the finding. MSDE provided the requested reports on January 8, 2025. The audit findings were shared with the Department with aggressive turn-around times on March 27, 2025, as the Department staff were in the middle of several critical projects. This did not give an opportunity to the Department to do an in-depth review once again and provide the documentation requested by the auditors. Action taken in response to finding: Regardless of our disagreement, MSDE will review and enhance its Standard Operating Procedures (SOPs) and internal controls to ensure that all required subawards are reported timely and accurately to FSRS no later than the end of the month following the month of issuance. Name(s) of the contact person(s) responsible for corrective action: Donna Gunning Assistant Superintendent Division of Financial Policy, Planning, Operations & Strategy Krishnanda Tallur Deputy Superintendent Office of Finance and Operations Planned completion date for corrective action plan: June 30, 2025 Page 2 If the USDE has questions regarding this plan, please call Patricia Ramallosa at 410- 767-0103. Approval of Response to the CLA Findings and Recommendations: Document Version Approval Date Approved by Signature Mar 31, 2025 Donna Gunning, Assistant Superintendent of Financial Policy, Planning, Operations & Strategy Mar 31, 2025 Krishnanda Tallur, Deputy Superintendent of Finance and Operations

View Audit 385911

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