Corrective Action Plans

Finding 397877 (2023-001)

Material Weakness 2023

Accord

MN

Internal Control / Segregation of Duties Eligibility Subrecipient Monitoring § 200.303

Compliance and Controls over Compliance – Eligibility Home Investment Partnership Program, AL# 14.239 Material Weakness Accord did not have controls in place to ensure that eligibility criteria and rent calculations were being reviewed and/or approved by someone other than the individual performing...

Compliance and Controls over Compliance – Eligibility Home Investment Partnership Program, AL# 14.239 Material Weakness Accord did not have controls in place to ensure that eligibility criteria and rent calculations were being reviewed and/or approved by someone other than the individual performing the initial determination or annual reexamination. Actions Taken or Planned: Management agrees with this finding. As of December 31, 2023, the Organization has sold all properties financed by HOME funds. Contact Persons: Robert Pickering, Chief Financial Officer

View Audit 306612

Finding 397870 (2023-002)

Significant Deficiency 2023

Msad #27

ME

Allowable Costs / Cost Principles Procurement, Suspension & Debarment § 200.303

Significant Difficiencies, 2023-002 Allowable Costs ond Activities: There is an audit recommendation that the District implement internal control processes and procedures to ensure that each purchase has a purchase order and an approved invoice at the time of payment, clearly indicating pre-approval...

Significant Difficiencies, 2023-002 Allowable Costs ond Activities: There is an audit recommendation that the District implement internal control processes and procedures to ensure that each purchase has a purchase order and an approved invoice at the time of payment, clearly indicating pre-approval for the purchase and coding to ensure it is charged to the correct accounts. Corrective Action: The District already has a requisition/purchase order system in place and will expand it to ensure purchases are pre-approved and that invoices are approved and that the purchase is coded to the appropriate fund. Anticipated Completion Date: This con-ective action has already been implemented during the 2023-2024 fiscal year, once identified by our auditors while they were performing our 2022-2023 audit.

View Audit 306609

Finding 397517 (2023-062)

Material Weakness 2023

State of Washington C/o Office of Financial Management

WA

Matching / Level of Effort / Earmarking Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303 § 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 financial reporting requirements for the Child Care and Development Fund Cluster. Questioned Costs: Assistance Listing # 93.575 93.575 COVID-19 93.596 Status: Correc...

Finding: The Department of Children, Youth, and Families did not have adequate internal controls over and did not comply with financial reporting requirements for the Child Care and Development Fund Cluster. Questioned Costs: Assistance Listing # 93.575 93.575 COVID-19 93.596 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. The Department implemented grant-level management of all federal funds, including the CCDF grant. The Department allocated the CCDF grant to eligible clients and allowable activities in compliance with 45 CFR 98.67. As part of the audit resolution process, the Department of Health and Human Services (HHS), Administration for Children & Families (ACF), which oversees the CCDF program at the federal level, reviews all State Auditor’s Office (SAO) findings and issues management decision letters. The Department received a management decision letter dated October 3, 2023, from HHS for finding 2021-033 (2020-038) which states: “The ACF noted that the auditor raised concern about the Department’s accounting procedures and efforts made to trace expenditures at the transaction-level. As the basis for the finding, the auditor used CFRs (200.53, 200.303, 200.403, 200.410) that do not apply to CCDF. Federal regulations allow Lead Agencies to expend and account for CCDF funds in accordance with their own procedures.” In addition, ACF did not sustain the disallowance of questioned costs and stated: “Although the Department’s internal controls were lacking, the ACF has not identified any funds that were expended on ineligible activities.” The ACF recommended: “…that the Department work with the auditors to determine an appropriate methodology that can be tested to ensure child care payments comply with Federal regulations.” The Department met with ACF and SAO on November 8, 2023, to discuss the ACF decision at which time ACF upheld the above statements that the activities allowed finding was not substantiated. The Department is committed to collaborating with SAO to determine an appropriate methodology that identifies a sampling unit that can be used to accurately test compliance. The SAO maintained that the program is not auditable without child-level data. The Department does not currently have the staff and 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 the auditor’s recommendations, the Department submitted a budget request for the 2024 supplemental budget. Funding was provided to develop and maintain the business process that would allow adjustments to include child-level data beginning July 2024. The conditions noted in this finding were previously reported in findings 2022-044 and 2021-038. Completion Date: Estimated December 2025 Agency Contact: Stefanie Niemela Audit Liaison PO Box 40970 Olympia, WA 98504-0970 (360) 725-4402 stefanie.niemela@dcyf.wa.gov

View Audit 306534

Finding 397516 (2023-061)

Material Weakness 2023

State of Washington C/o Office of Financial Management

WA

Matching / Level of Effort / Earmarking Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303 § 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 period of performance requirements for the Child Care and Development Fund Cluster. Questioned Costs: Assistance Listing # 93.575 93.575 COVID-19 93.596 Status: Corr...

Finding: The Department of Children, Youth, and Families did not have adequate internal controls over and did not comply with period of performance requirements for the Child Care and Development Fund Cluster. Questioned Costs: Assistance Listing # 93.575 93.575 COVID-19 93.596 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. The Department implemented grant-level management of all federal funds, including the CCDF grant. The Department allocated the CCDF grant to eligible clients and allowable activities in compliance with 45 CFR 98.67. As part of the audit resolution process, the Department of Health and Human Services (HHS), Administration for Children & Families (ACF), which oversees the CCDF program at the federal level, reviews all State Auditor’s Office (SAO) findings and issues management decision letters. The Department received a management decision letter dated October 3, 2023, from HHS for finding 2021-033 (2020-038) which states: “The ACF noted that the auditor raised concern about the Department’s accounting procedures and efforts made to trace expenditures at the transaction-level. As the basis for the finding, the auditor used CFRs (200.53, 200.303, 200.403, 200.410) that do not apply to CCDF. Federal regulations allow Lead Agencies to expend and account for CCDF funds in accordance with their own procedures.” In addition, ACF did not sustain the disallowance of questioned costs and stated: “Although the Department’s internal controls were lacking, the ACF has not identified any funds that were expended on ineligible activities.” The ACF recommended: “…that the Department work with the auditors to determine an appropriate methodology that can be tested to ensure child care payments comply with Federal regulations.” The Department met with ACF and SAO on November 8, 2023, to discuss the ACF decision at which time ACF upheld the above statements that the activities allowed finding was not substantiated. The Department is committed to collaborating with SAO to determine an appropriate methodology that identifies a sampling unit that can be used to accurately test compliance. The SAO maintained that the program is not auditable without child-level data. The Department does not currently have the staff and 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 the auditor’s recommendations, the Department: • Implemented written procedures for period of performance requirements effective December 6, 2023. • Submitted a budget request for the 2024 supplemental budget. Funding was provided to develop and maintain the business process that would allow adjustments to include child-level data beginning July 2024. The conditions noted in this finding were previously reported in findings 2022-043, 2021-037 and 2020-041. Completion Date: Estimated December 2025 Agency Contact: Stefanie Niemela Audit Liaison PO Box 40970 Olympia, WA 98504-0970 (360) 725-4402 stefanie.niemela@dcyf.wa.gov

View Audit 306534

Finding 397515 (2023-060)

Material Weakness 2023

State of Washington C/o Office of Financial Management

WA

Matching / Level of Effort / Earmarking Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303 § 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 matching, level of effort, and earmarking requirements for the Child Care and Development Fund Cluster. Questioned Costs: Assistance Listing # 93.575 93.575 COVID-19 ...

Finding: The Department of Children, Youth, and Families did not have adequate internal controls over and did not comply with matching, level of effort, and earmarking requirements for the Child Care and Development Fund Cluster. Questioned Costs: Assistance Listing # 93.575 93.575 COVID-19 93.596 Amount $0 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. The Department implemented grant-level management of all federal funds, including the CCDF grant. The Department allocated the CCDF grant to eligible clients and allowable activities in compliance with 45 CFR 98.67. As part of the audit resolution process, the Department of Health and Human Services (HHS), Administration for Children & Families (ACF), which oversees the CCDF program at the federal level, reviews all State Auditor’s Office (SAO) findings and issues management decision letters. The Department received a management decision letter dated October 3, 2023, from HHS for finding 2021-033 (2020-038) which states: “The ACF noted that the auditor raised concern about the Department’s accounting procedures and efforts made to trace expenditures at the transaction-level. As the basis for the finding, the auditor used CFRs (200.53, 200.303, 200.403, 200.410) that do not apply to CCDF. Federal regulations allow Lead Agencies to expend and account for CCDF funds in accordance with their own procedures.” In addition, ACF did not sustain the disallowance of questioned costs and stated: “Although the Department’s internal controls were lacking, the ACF has not identified any funds that were expended on ineligible activities.” The ACF recommended: “…that the Department work with the auditors to determine an appropriate methodology that can be tested to ensure child care payments comply with Federal regulations.” The Department met with ACF and SAO on November 8, 2023, to discuss the ACF decision at which time ACF upheld the above statements that the activities allowed finding was not substantiated. The Department is committed to collaborating with SAO to determine an appropriate methodology that identifies a sampling unit that can be used to accurately test compliance. The SAO maintained that the program is not auditable without child-level data. The Department does not currently have the staff and 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 the auditor’s recommendations, the Department submitted a budget request for the 2024 supplemental budget. Funding was provided to develop and maintain the business process that would allow adjustments to include child-level data beginning July 2024. The conditions noted in this finding were previously reported in findings 2022-042, 2021-036 and 2020-040. Completion Date: Estimated December 2025 Agency Contact: Stefanie Niemela Audit Liaison PO Box 40970 Olympia, WA 98504-0970 (360) 725-4402 stefanie.niemela@dcyf.wa.gov

View Audit 306534

Finding 397513 (2023-058)

Material Weakness 2023

State of Washington C/o Office of Financial Management

WA

Questioned Costs Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles § 200.303 § 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 for the Child Care and Development Fund Cluster programs were allowable and properly supported. Questioned Costs: ...

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 for the Child Care and Development Fund Cluster programs were allowable and properly supported. Questioned Costs: Assistance Listing # 93.575 93.575 COVID-19 93.596 Amount 356,042,172 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. The Department implemented grant-level management of all federal funds, including the CCDF grant. The Department allocated the CCDF grant to eligible clients and allowable activities in compliance with 45 CFR 98.67. As part of the audit resolution process, the Department of Health and Human Services (HHS), Administration for Children & Families (ACF), which oversees the CCDF program at the federal level, reviews all State Auditor’s Office (SAO) findings and issues management decision letters. The Department received a management decision letter dated October 3, 2023, from HHS for finding 2021-033 (2020-038) which states: “The ACF noted that the auditor raised concern about the Department’s accounting procedures and efforts made to trace expenditures at the transaction-level. As the basis for the finding, the auditor used CFRs (200.53, 200.303, 200.403, 200.410) that do not apply to CCDF. Federal regulations allow Lead Agencies to expend and account for CCDF funds in accordance with their own procedures.” In addition, ACF did not sustain the disallowance of questioned costs and stated: “Although the Department’s internal controls were lacking, the ACF has not identified any funds that were expended on ineligible activities.” The ACF recommended: “…that the Department work with the auditors to determine an appropriate methodology that can be tested to ensure child care payments comply with Federal regulations.” The Department met with ACF and SAO on November 8, 2023, to discuss the ACF decision at which time ACF upheld the above statements that the activities allowed finding was not substantiated. The Department is committed to collaborating with SAO to determine an appropriate methodology that identifies a sampling unit that can be used to accurately test compliance. The SAO maintained that the program is not auditable without child-level data. The Department does not currently have the staff and 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 the auditor’s recommendations, the Department submitted a budget request for the 2024 supplemental budget. Funding was provided to develop and maintain the business process that would allow adjustments to include child-level data beginning July 2024. The conditions noted in this finding were previously reported in findings 2022-041, 2021-033, 2020-038, 2019-035, 2018-034, 2017-024, 2016-021, 2015-023, 2014-023, 2013-016, 12-28, 11-23, 10-31, 9-12 and 8-13. Completion Date: Estimated December 2025 Agency Contact: Stefanie Niemela Audit Liaison PO Box 40970 Olympia, WA 98504-0970 (360) 725-4402 stefanie.niemela@dcyf.wa.gov

View Audit 306534 Questioned Costs: $1

Finding 397413 (2023-051)

Material Weakness 2023

State of Washington C/o Office of Financial Management

WA

Questioned Costs Matching / Level of Effort / Earmarking Subrecipient Monitoring § 200.303 § 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 property 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 property supported. Questioned Costs: Assistance Listing # 93.558 Amount $107,338,725 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 grant. This consisted of making significant grant level adjustments between allowable grant sources to properly spend grant dollars within the allowable period of performance and ensure level of effort and matching requirements were met. The Department’s grant adjustments were processed based on eligible clients and allowable activities. The Department does not currently have the staff to develop and maintain the business process redesign, as well as the information technology initiatives necessary to meet the level of assurance recommended by the State Auditor’s Office. In response to the auditor’s recommendations, the Department submitted a budget request for the 2024 supplemental budget. Funding was provided to develop and maintain the business process that would allow adjustments to include child-level data beginning July 2024. The conditions noted in this finding were previously reported in findings 2022-035 and 2021-028. Completion Date: Estimated December 2025 Agency Contact: Stefanie Niemela Audit Liaison PO Box 40970 Olympia, WA 98504-0970 (360) 725-4402 stefanie.niemela@dcyf.wa.gov

View Audit 306534 Questioned Costs: $1

Finding 397067 (2023-001)

Significant Deficiency 2023

The University of Vermont Health Network INC

VT

Allowable Costs / Cost Principles Cash Management Reporting § 200.303

Management’s Views and Corrective Action Plan 2023-001 Significant deficiency in reporting for lack of submitting required documentation related to HRSA for previously reported Provider Relief Funds Cluster: Not applicable Federal Granting Agency: Health Resources and Services Administration (HRSA) ...

Management’s Views and Corrective Action Plan 2023-001 Significant deficiency in reporting for lack of submitting required documentation related to HRSA for previously reported Provider Relief Funds Cluster: Not applicable Federal Granting Agency: Health Resources and Services Administration (HRSA) Award Year: 1/1/2020 6/30/2023 Assistance Listing #: 93.498 Assistance Listing Title: COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Pass-through entity: Not applicable Management has reassessed its internal controls over the review and approval of PRF submissions. The Network has now completed all PRF portal submissions, and this program has come to an end. Leadership Responsible: Steve Warren, Network Mgr. Grants Management Finance; Melissa Laurie, Network VP/Corporate Controller Anticipated Completion Date: 3/1/2024

View Audit 306487

Finding 396604 (2023-005)

Material Weakness 2023

Phillips County Hospital Association

MT

Material Weakness Reporting Matching / Level of Effort / Earmarking § 200.303

Management will submit the audited financial statements to the Department of Agriculture.

View Audit 306230

Finding 396603 (2023-004)

Material Weakness 2023

Phillips County Hospital Association

MT

Special Tests & Provisions Subrecipient Monitoring Material Weakness § 200.303

Management will establish and fund a segregated reserve account.

View Audit 306230

Finding 396578 (2023-003)

Significant Deficiency 2023

Washburn Center for Children

MN

Allowable Costs / Cost Principles Cash Management Period of Performance § 200.303

Federal Agency Name: Department of Health and Human Services Program Name: Block Grants for Community Mental Health Services CFDA # 93.958 Finding Summary: There was no formal documentation of review and approval of wage rates prior to the submission of the reimbursement request to SAMHSA for three ...

Federal Agency Name: Department of Health and Human Services Program Name: Block Grants for Community Mental Health Services CFDA # 93.958 Finding Summary: There was no formal documentation of review and approval of wage rates prior to the submission of the reimbursement request to SAMHSA for three months selected for testing. Responsible Individuals: Mohamed Omar, MBA, MS, Chief Administrative Officer and Mark Copps, Finance Director / Controller Corrective Action Plan: During 2023, management implemented a formal documentation of the review including the appropriate level of management sign off and date of review on the supporting documentation. Anticipated Completion Date: October 2023

View Audit 306158

Finding 396569 (2023-004)

None 2023

Keppel Union School District

CA

Questioned Costs Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.303 § 200.430

The District will require a PAR form from any employee covering a shift in Child Nutrition whose main job is not in the Child Nutrition Department. • The Director of Child Nutrition, Syed Zaidi, will identify and provide a PAR form for those employees providing services to the Child Nutrition Depart...

The District will require a PAR form from any employee covering a shift in Child Nutrition whose main job is not in the Child Nutrition Department. • The Director of Child Nutrition, Syed Zaidi, will identify and provide a PAR form for those employees providing services to the Child Nutrition Department in a substitute situation. To be established as of 6/30/2024.

View Audit 306138 Questioned Costs: $1

Finding 396506 (2023-001)

Significant Deficiency 2023

Jackson County Utility Authority

MS

Reporting Subrecipient Monitoring Matching / Level of Effort / Earmarking § 200.303

Management will improve monitoring of any funds received from outside agencies to verify if Jackson County Utility Authority is considered a sub-award for funds received. Completion Date: Ongoing Name of Contact Person Responsbile for Corrective Action Plan: Linda Green

View Audit 306108

Finding 396369 (2023-028)

Material Weakness 2023

State of Alaska

AK

Internal Control / Segregation of Duties Cash Management Material Weakness § 200.303

Finding: 2023-028 - Of the two FY 23 FMAG quarterly progress reports (QPR) selected for testing, one was not filed. Testing of the QPR for quarter ending June 30, 2023, identified incorrect amounts and data. Questioned Costs: None Assistance Listing Number: 97.046 Assistance Listing Title: FMAG...

Finding: 2023-028 - Of the two FY 23 FMAG quarterly progress reports (QPR) selected for testing, one was not filed. Testing of the QPR for quarter ending June 30, 2023, identified incorrect amounts and data. Questioned Costs: None Assistance Listing Number: 97.046 Assistance Listing Title: FMAG Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): DNR agrees with this finding Corrective Action (corrective action planned): DNR Forestry staff responsible for preparation, review and submission of the FMAG QPR reporting will review procedures and provide corrective updates to the process. This plan will establish written policies and procedures, including independent review and validation before submission. Completion Date (list anticipated completion date): March 2024 Agency Contact (name of person responsible for corrective action): Norman McDonald, Forestry Acting Director

View Audit 305957

Finding 396368 (2023-027)

Material Weakness 2023

State of Alaska

AK

Reporting Cash Management Material Weakness § 200.303

Finding: 2023-027 - DNR Support Services Division staff did not file the FY 23 Federal Cash Transaction Reports for quarters ending September 2022, December 2022, and June 2023. The audit reviewed the March 2023 quarterly report filed and determined inaccurate cumulative cash receipts and cash disbu...

Finding: 2023-027 - DNR Support Services Division staff did not file the FY 23 Federal Cash Transaction Reports for quarters ending September 2022, December 2022, and June 2023. The audit reviewed the March 2023 quarterly report filed and determined inaccurate cumulative cash receipts and cash disbursements were reported. Questioned Costs: None Assistance Listing Number: 97.046 Assistance Listing Title: FMAG Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): DNR agrees with this finding. Corrective Action (corrective action planned): DNR fiscal staff responsible for preparation and review and submission of the FCTR reporting will review procedures and provide corrective updates to the process. This plan will establish written policies and procedures, including independent review and validation before submission. Completion Date (list anticipated completion date): June 30, 2024 Agency Contact (name of person responsible for corrective action): Theresa Cross, Administrative Services Director

View Audit 305957

Finding 396367 (2023-026)

Material Weakness 2023

State of Alaska

AK

Reporting Internal Control / Segregation of Duties Material Weakness § 200.303

Finding: 2023-026 - Three FY 23 Fire Management Assistance Grant (FMAG) SF-425 reports were randomly selected for testing. Two reports had incorrect matching amounts and one report for quarter ending September 2022 was not filed. Questioned Costs: None Assistance Listing Number: 97.046 Assistance...

Finding: 2023-026 - Three FY 23 Fire Management Assistance Grant (FMAG) SF-425 reports were randomly selected for testing. Two reports had incorrect matching amounts and one report for quarter ending September 2022 was not filed. Questioned Costs: None Assistance Listing Number: 97.046 Assistance Listing Title: FMAG Program Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): DNR agrees with this finding Corrective Action (corrective action planned): DNR Forestry staff responsible for preparation, review and submission of the FMAG reporting will review procedures and provide corrective updates to the process. This plan will establish written policies and procedures, including independent review and validation before submission. Completion Date (list anticipated completion date): March 2024 Agency Contact (name of person responsible for corrective action): Norman McDonald, Forestry Acting Director

View Audit 305957

Finding 396323 (2023-019)

Material Weakness 2023

State of Alaska

AK

Subrecipient Monitoring Material Weakness Reporting § 200.303

Finding: 2023-019 – The Department of Education and Early Development (DEED) did not file Federal Funding Accountability and Transparency Act reports for FY 23 Education Stabilization Fund programs, Title I-A, and Title I-C subawards. Questioned Costs: None Assistance Listing Number: 84.425D; 84.4...

Finding: 2023-019 – The Department of Education and Early Development (DEED) did not file Federal Funding Accountability and Transparency Act reports for FY 23 Education Stabilization Fund programs, Title I-A, and Title I-C subawards. Questioned Costs: None Assistance Listing Number: 84.425D; 84.425R; 84.425U; 84.425W; 84.010; 84.011 Assistance Listing Title: Elementary and Secondary School Emergency Relief Fund – COVID-19; Emergency Assistance for Non-Public Schools – COVID-19; American Rescue Plan – Elementary and Secondary School Emergency Relief Fund – COVID-19; American Rescue Plan – Homeless Children and Youth – COVID-19; Title I Grants to Local Educational Agencies (Title I-A); Migrant Education State Grant Program (Title I-C) Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why):The department agrees with Finding 2023-001. Corrective Action (corrective action planned):The department will continue to work with our federal contacts to attempt to resolve FFATA reporting issues. Completion Date (list anticipated completion date): Completion date is unknown as the department has been working with the FSRS helpdesk, and federal program staff, for a significant period of time with little success. The main issue has been known since go live of FFATA reporting and the General Services Administration (GSA) claims to have implemented a solution effective March 10, 2021, however States continue to have the same issues. Agency Contact (name of person responsible for corrective action): Monique Siverly, Acting Division Operations Manager, Division of Administrative Services

View Audit 305957

Finding 396312 (2023-062)

Significant Deficiency 2023

State of Alaska

AK

Subrecipient Monitoring Reporting Significant Deficiency § 200.303 § 200.332 § 200.521

Finding: 2023-062 – DOT&PF management did not issue a management decision for the one single audit finding requiring follow-up in FY 23 within six months as required by federal law. Questioned Costs: None Assistance Listing Number: 20.509 Assistance Listing Title: FGRA Views of Responsible Offic...

Finding: 2023-062 – DOT&PF management did not issue a management decision for the one single audit finding requiring follow-up in FY 23 within six months as required by federal law. Questioned Costs: None Assistance Listing Number: 20.509 Assistance Listing Title: FGRA Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): Agree Corrective Action (corrective action planned): The Finance Officer will develop and implement a procedure to ensure management decisions for all subrecipient single audit findings are issued within six months of the audit report's acceptance by the federal audit clearinghouse. Completion Date (list anticipated completion date): June 30, 2024 Agency Contact (name of person responsible for corrective action): Elizabeth Dunayski, Financial Services Manager

View Audit 305957

Finding 396311 (2023-061)

Significant Deficiency 2023

State of Alaska

AK

Subrecipient Monitoring § 200.303 § 200.332

Finding: 2023-061 – All five FY 23 FGRA subaward grant agreements tested did not include all federally required information. Questioned Costs: None Assistance Listing Number: 20.509 Assistance Listing Title: FGRA Views of Responsible Officials (state whether your agency agrees or disagrees with ...

Finding: 2023-061 – All five FY 23 FGRA subaward grant agreements tested did not include all federally required information. Questioned Costs: None Assistance Listing Number: 20.509 Assistance Listing Title: FGRA Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): Agree Corrective Action (corrective action planned): The Division of Project Delivery will amend all active FGRA subaward grant agreements to include all missing federally required information. DPD will update subaward templates and instructions to include federal award date, assistance listing title, and DOT&PF indirect cost rate to ensure federally required information is included. Completion Date (list anticipated completion date): June 30, 2024 Agency Contact (name of person responsible for corrective action): Eric Taylor, Transportation Planner 3

View Audit 305957

Finding 396309 (2023-059)

Significant Deficiency 2023

State of Alaska

AK

Subrecipient Monitoring Allowable Costs / Cost Principles Eligibility § 200.303

Finding: 2023-059 – DOT&PF's Division of Program Development does not have a formal process for managing user access to its transit data management system. Questioned Costs: None Assistance Listing Number: 20.509 Assistance Listing Title: Formula Grants for Rural Areas (FGRA) Views of Responsibl...

Finding: 2023-059 – DOT&PF's Division of Program Development does not have a formal process for managing user access to its transit data management system. Questioned Costs: None Assistance Listing Number: 20.509 Assistance Listing Title: Formula Grants for Rural Areas (FGRA) Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): Agree Corrective Action (corrective action planned): The Division of Project Delivery will develop a procedure to manage user access to the system as well as working with system programmers to automatically deactivate user accounts after a period of inactivity. Completion Date (list anticipated completion date): June 30, 2024 Agency Contact (name of person responsible for corrective action): Eric Taylor, Transportation Planner 3

View Audit 305957

Finding 396305 (2023-058)

Significant Deficiency 2023

State of Alaska

AK

Special Tests & Provisions Subrecipient Monitoring Significant Deficiency § 200.303

Finding: 2023-058 – Contractor-certified payrolls tested for six construction projects were not submitted timely. Late payroll submission dates ranged from eight days to 189 days after the payroll payment date for the 158 certified payrolls tested. Questioned Costs: None Assistance Listing Number:...

Finding: 2023-058 – Contractor-certified payrolls tested for six construction projects were not submitted timely. Late payroll submission dates ranged from eight days to 189 days after the payroll payment date for the 158 certified payrolls tested. Questioned Costs: None Assistance Listing Number: 20.106 Assistance Listing Title: Airport Improvement Program Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): Agree Corrective Action (corrective action planned): DOT&PF, in coordination with the Department of Labor, has implemented the AASHTOWare Project Civil Rights and Labor Module (AWP-CRL). This module provides a web-based platform where contractors submit certified payrolls for all contracts awarded after January 1, 2021. AASHTOWare provides tracking and monitoring of certified payroll through reporting. DOT&PF staff project managers are responsible for requesting certified payroll status reports from AASHTOWare to monitor if certified payrolls are received timely and follow up with the contractors if data is not received timely. DOT&PF management will provide training to DOT&PF staff to ensure that monitoring of timely submission of certified payroll is done. Completion Date (list anticipated completion date): June 30, 2024 Agency Contact (name of person responsible for corrective action): Christine Langley, Data Modernization and Innovation Office Director

View Audit 305957

Finding 396304 (2023-057)

Significant Deficiency 2023

State of Alaska

AK

Reporting Cash Management Significant Deficiency § 200.303

Finding: 2023-057 – DOT&PF management lacked internal controls to ensure the annual SF-271 equivalent report was supported, accurate, and complete. Questioned Costs: None Assistance Listing Number: 20.106 Assistance Listing Title: Airport Improvement Program Views of Responsible Officials (state...

Finding: 2023-057 – DOT&PF management lacked internal controls to ensure the annual SF-271 equivalent report was supported, accurate, and complete. Questioned Costs: None Assistance Listing Number: 20.106 Assistance Listing Title: Airport Improvement Program Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): Agree Corrective Action (corrective action planned): The support documentation for the SF 425 and SF 271 equivalent are documented in the FFR Working File. The FFR Working File goes through reviews by the Grants & Projects team to ensure no errors are found before reporting. DOT&PF has updated the procedures for the current FAA FFR that was submitted in December 2023. The update adds two signatures to document the preparation and approval of the SF 271 equivalent on the FFR Working File that will be converted to PDF and filed. Completion Date (list anticipated completion date): January 31, 2024 Agency Contact (name of person responsible for corrective action): Elizabeth Dunayski, Financial Services Manager

View Audit 305957

Finding 396303 (2023-056)

Significant Deficiency 2023

State of Alaska

AK

Reporting Significant Deficiency Internal Control / Segregation of Duties § 200.303 § 200.328

Finding: 2023-056 – One of four randomly selected (25 percent) and two of three judgmentally selected (67 percent) 5100-126 reports tested did not tie to support, resulting in an overstatement of expenditures. One of three judgmentally selected 5100-127 reports tested (33 percent) had multiple lines...

Finding: 2023-056 – One of four randomly selected (25 percent) and two of three judgmentally selected (67 percent) 5100-126 reports tested did not tie to support, resulting in an overstatement of expenditures. One of three judgmentally selected 5100-127 reports tested (33 percent) had multiple lines in error, resulting in overstatements of revenue and net assets. Questioned Costs: None Assistance Listing Number: 20.106 Assistance Listing Title: Airport Improvement Program Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): Agree Corrective Action (corrective action planned): The Finance Officer will ensure the procedures for the preparation, review, and approval of the 5100-126 and 5100-127 reports are updated to ask for support documentation for Ketchikan and Sitka airports and a complete review and approval is done before submission of the reports. The AIA Controller will develop and implement procedures to ensure proper preparation of the 5100-126 and 5100-127 reports with supervisory review and approval prior to report submission. Completion Date (list anticipated completion date): June 30, 2024 Agency Contact (name of person responsible for corrective action): Elizabeth Dunayski, Financial Services Manager

View Audit 305957

Finding 396298 (2023-022)

Significant Deficiency 2023

State of Alaska

AK

Subrecipient Monitoring § 200.303 § 200.332

Finding: 2023-022 - WIOA cluster FY 23 subaward agreement forms did not identify the subrecipients’ unique entity identifier number. Furthermore, one of three subaward agreements tested did not identify the Assistance Listing number associated with the subaward. Questioned Costs: None Assistance L...

Finding: 2023-022 - WIOA cluster FY 23 subaward agreement forms did not identify the subrecipients’ unique entity identifier number. Furthermore, one of three subaward agreements tested did not identify the Assistance Listing number associated with the subaward. Questioned Costs: None Assistance Listing Number: 17.258, 17.259, 17.278 Assistance Listing Title: WIOA Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): DOLWD agrees with the finding. Corrective Action (corrective action planned): We updated our department procedures by adding checklists that include required levels of approval, strengthening our review process. Completion Date (list anticipated completion date): March 2024 Agency Contact (name of person responsible for corrective action): Jeff Steeprow, Assistant Director

View Audit 305957

Finding 396297 (2023-021)

Significant Deficiency 2023

State of Alaska

AK

Subrecipient Monitoring Reporting Significant Deficiency § 200.303

Finding: 2023-021 – Department of Labor and Workforce Development staff did not file Federal Funding Accountability and Transparency Act (FFATA) reports for FY 23 Workforce Innovation and Opportunity Act (WIOA) Cluster subawards. Questioned Costs: None Assistance Listing Number: 17.258, 17.259, 17...

Finding: 2023-021 – Department of Labor and Workforce Development staff did not file Federal Funding Accountability and Transparency Act (FFATA) reports for FY 23 Workforce Innovation and Opportunity Act (WIOA) Cluster subawards. Questioned Costs: None Assistance Listing Number: 17.258, 17.259, 17.278 Assistance Listing Title: WIOA Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): DOLWD agrees with the finding. Corrective Action (corrective action planned): We developed department procedures for FFATA submission, and have submitted the FFATA reports on 3/4/2024. Completion Date (list anticipated completion date): March 2024 Agency Contact (name of person responsible for corrective action): Jeff Steeprow, Assistant Director

View Audit 305957

Corrective Action Plans

Filters