Corrective Action Plans

Finding 1154026 (2023-024)

Material Weakness 2023

State of Illinois

IL

Procurement, Suspension & Debarment Eligibility Reporting § 200.303

Finding Number: 2023-024 Finding Name: Failure to Report Expenditures on the Medicaid CMS-64 Report in a Timely Manner Finding Condition(s): The Illinois Department of Healthcare and Family Services (DHFS) did not report certain Medicaid Cluster expenditures on quarterly federal financial (CMS-64) r...

Finding Number: 2023-024 Finding Name: Failure to Report Expenditures on the Medicaid CMS-64 Report in a Timely Manner Finding Condition(s): The Illinois Department of Healthcare and Family Services (DHFS) did not report certain Medicaid Cluster expenditures on quarterly federal financial (CMS-64) reports in a timely manner. Name of Contact Person(s): Jennifer Bourn, Bureau Chief – Illinois Department of Healthcare and Family Services, Federal Finance Corrective Action(s): The Illinois Department of Human Services (DHS) and the DHS’ Department of Innovation and Technology (DoIT) staff have implemented weekly reports on developmental disabilities (DD) waiver payment submissions to the DHFS to allow DHS staff information to review and timely identify any issues with the DD waiver submissions to the DHFS. The DHFS reviewed and revised its quarterly other agency Medicaid spending/federal revenue reporting, which is used to create the CMS-64. This report includes actual quarterly claim expenditure data and is distributed by the DHFS to other agencies and its staff for review each quarter. This report was redesigned to provide prior quarter/year comparisons to allow for more effective identification of problematic issues. Finally, the report’s recipient list was updated to ensure appropriate distribution to the DHFS’ staff and the other agencies. The DHFS’ staff follows-up with other agency recipients to ensure the quarterly reports are reviewed and responses are communicated to the DHFS. Proposed Completion Date: June 30, 2025 – Completed

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Finding 1154020 (2023-023)

Material Weakness 2023

State of Illinois

IL

Special Tests & Provisions Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.303

Finding Number: 2023-023 Finding Name: Failure to Perform Recovery Audits over Medicaid Underpayments and Overpayment Claims Finding Condition(s): The Illinois Department of Healthcare and Family Services (DHFS) did not initiate any recovery audits over Medicaid claims during fiscal year 2023. Name ...

Finding Number: 2023-023 Finding Name: Failure to Perform Recovery Audits over Medicaid Underpayments and Overpayment Claims Finding Condition(s): The Illinois Department of Healthcare and Family Services (DHFS) did not initiate any recovery audits over Medicaid claims during fiscal year 2023. Name of Contact Person(s): • Ismaila Jagne, Administrative Assistant II - Illinois Department of Healthcare and Family Services, Office of Inspector General • Brian Dunn, Inspector General - Illinois Department of Healthcare and Family Services, Office of Inspector General Corrective Action(s): The DHFS’ Office of Inspector General and the recovery audit contractor (RAC) vendor developed and implemented an audit system. As the program’s administrator, the DHFS OIG monitors its efficacy on an on-going basis and will adjust as necessary. While the RAC vendor did work to complete 13 audits in fiscal year 2023, pursuant to a former contract, the DHFS did not execute its 2023 RAC contract until August 12, 2022. By law, no work could begin under that contract until it was finalized. Once the contract was executed, DHFS’ OIG began working with the vendor to develop the policies, procedures, templates, and systems needed to run an efficient and effective auditing program. The DHFS’ OIG and the RAC vendor met on a bi-weekly basis to develop and implement this system. After all planning and development was completed, the vendor programmed its system and auditing began. RAC audits have a three-year look-back period; therefore, audits in the system will cover fiscal year 2023. Proposed Completion Date: October 31, 2023 – Completed

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Finding 1154014 (2023-022)

Material Weakness 2023

State of Illinois

IL

Questioned Costs Allowable Costs / Cost Principles Eligibility § 200.303

Finding Number: 2023-022 Finding Name: Failure to Discontinue CHIP Benefits for Ineligible Individuals Finding Condition(s): The Illinois Department of Healthcare and Family Services (DHFS) improperly continued providing benefits under the Children’s Health Insurance Program (CHIP) program to indivi...

Finding Number: 2023-022 Finding Name: Failure to Discontinue CHIP Benefits for Ineligible Individuals Finding Condition(s): The Illinois Department of Healthcare and Family Services (DHFS) improperly continued providing benefits under the Children’s Health Insurance Program (CHIP) program to individuals who were over the age of 19 prior to the start of the federal Public Health Emergency for COVID-19 (PHE) on March 13, 2020. Name of Contact Person(s): • Jacqueline Myers, Bureau Chief - Illinois Department of Healthcare and Family Services, Division of Eligibility • Phronsie Spaulding, Audit Compliance - Illinois Department of Healthcare and Family Services, Division of Eligibility Corrective Action(s): The DHFS accepts this finding for the 19-year-olds identified as receiving assistance under the CHIP program prior to the onset of the federal PHE. Those receiving assistance during the PHE were allowable under the Centers for Medicare and Medicaid Services’ Award Letter. CHIP eligibility for 19-year-olds was not allowable 14 months following the end of the PHE. These cases were redetermined in the State's federally required Unwinding Plan for which additional staff were hired and trained. The DHFS continues to review eligibility determinations for effectiveness and create a plan of action. Current data, as of April 2025, supports the success of the plan as these cases have decreased by 98%. Proposed Completion Date: December 31, 2025

View Audit 366965 Questioned Costs: $1

Finding 1154012 (2023-021)

Material Weakness 2023

State of Illinois

IL

Allowable Costs / Cost Principles Special Tests & Provisions Eligibility § 200.303

Finding Number: 2023-021 Finding Name: Inadequate Procedures to Determine Provider Eligibility Finding Condition(s): The Illinois Department of Healthcare and Family Services (DHFS) did not adequately screen providers of the Children’s Health Insurance Program (CHIP) and the Medicaid Cluster program...

Finding Number: 2023-021 Finding Name: Inadequate Procedures to Determine Provider Eligibility Finding Condition(s): The Illinois Department of Healthcare and Family Services (DHFS) did not adequately screen providers of the Children’s Health Insurance Program (CHIP) and the Medicaid Cluster programs to ensure that Medicaid providers were not on the USDHHS Office of the Inspector General’s (OIG) List of Excluded Individuals/Entities (LEIE) at the time the vouchers for the related services performed were paid. Name of Contact Person(s): • Susie Brown, Assistance Bureau Chief - Illinois Department of Healthcare and Family Services, Provider Enrollment Services • Anthony Kolbeck, Bureau Chief - Illinois Department of Healthcare and Family Services, Provider Enrollment Services Corrective Action(s): The Illinois Medicaid Program Advanced Cloud Technology (IMPACT) system is used by the DHFS for the enrollment and screening of CHIP and Medicaid providers. On a monthly basis, IMPACT automatically checks providers enrolled within IMPACT to the LEIE to verify the provider is not on the LEIE. The IMPACT system is updated through quarterly system releases. As part of the 1.6 quarterly release, the DHFS’ Provider Enrollment Services (PES) updated the system to address the monthly screening check box defect causing the issue. In the Lexis Nexis monthly job, as part of license information, the DHFS receives files from the American Board of Medical Specialties (ABMS), the Clinical Laboratory Improvement Amendments (CLIA), the Drug Enforcement Administration (DEA), and the NCPDP (National Council for Prescription Drug Programs (NCPDP) and other states (out-of-state license/medical license files). Only the corresponding license check boxes are checked for the provider. As an example, for a provider with an ABMS license, the corresponding ABMS check box would be checked. Furthermore, as part of sanction information, the DHFS receives a discipline file, which has the information from the Excluded Parties List System (EPLS), the LEIE, the Medicaid Services Administration (MSA), and other federal and state databases to ensure all are checked for active providers in a monthly batch. Proposed Completion Date: March 31, 2023 – Completed

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Finding 1154004 (2023-020)

Material Weakness 2023

State of Illinois

IL

Special Tests & Provisions Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303

Finding Number: 2023-020 Finding Name: Failure to Perform Periodic Audits of Encounter Data Finding Condition(s): The Illinois Department of Healthcare and Family Services (DHFS) did not perform periodic audits of the accuracy, truthfulness, and completeness of the encounter and financial data submi...

Finding Number: 2023-020 Finding Name: Failure to Perform Periodic Audits of Encounter Data Finding Condition(s): The Illinois Department of Healthcare and Family Services (DHFS) did not perform periodic audits of the accuracy, truthfulness, and completeness of the encounter and financial data submitted by, or on behalf of each Managed Care Organization (MCO) for the Children’s Health Insurance Program (CHIP) and Medicaid Cluster programs during fiscal year 2023. Name of Contact Person(s): • Amy Roberts, Program Reporting Compliance - Illinois Department of Healthcare and Family Services, Division of Medical Programs, Bureau of Managed Care • Rich Allen, Quality and Compliance Operations Manager - Illinois Department of Healthcare and Family Services, Division of Medical Programs, Bureau of Managed Care • Keshonna Lones, Bureau Chief - Illinois Department of Healthcare and Family Services, Division of Medical Programs, Bureau of Managed Care Corrective Action(s): The DHFS, in coordination with its External Quality Review Organization (EQRO), worked with the MCOs to conduct a validation audit of the MCOs and posted the final report on the DHFS Report Center line on September 28, 2023. The DHFS issued notices to the MCOs and required submission of GAAP/financial statement audits to be provided to the DHFS no later than July 31, 2023. The reports submitted by each MCO have been shared with the DHFS’ financial team for review. Additionally, the DHFS created a policy document for the encounter and financial three-year audit cycle. Proposed Completion Date: September 28, 2023 – Completed

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Finding 1153996 (2023-019)

Material Weakness 2023

State of Illinois

IL

Reporting § 200.303

Finding Number: 2023-019 Finding Name: Failure to Report Drug Rebates on the Medicaid CMS-64 Report in a Timely Manner Finding Condition(s): The Illinois Department of Healthcare and Family Services (DHFS) did not accurately report certain Medicaid Cluster program drug rebates on quarterly federal f...

Finding Number: 2023-019 Finding Name: Failure to Report Drug Rebates on the Medicaid CMS-64 Report in a Timely Manner Finding Condition(s): The Illinois Department of Healthcare and Family Services (DHFS) did not accurately report certain Medicaid Cluster program drug rebates on quarterly federal financial (CMS-64) reports. Name of Contact Person(s): Jason Rosado Timmerhaus, Bureau Chief – Illinois Department of Human Services, Budget and Cash Management Corrective Action(s): The DHFS has identified and implemented the programming necessary to omit the Medicare Part D drugs in August 2024. The DHFS continues to monitor quarterly variances within the drug rebates included in its CMS-64s. Proposed Completion Date: August 31, 2024 – Completed

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Finding 1153990 (2023-018)

Material Weakness 2023

State of Illinois

IL

Subrecipient Monitoring § 200.303 § 200.332

Finding Number: 2023-018 Finding Name: Inadequate Monitoring of Subrecipients of the CSLFRF and ERA Programs Finding Condition(s): The Illinois Department of Human Services (IDHS) did not obtain and review periodic performance reports for subrecipients of the COVID-19 – Coronavirus State and Local F...

Finding Number: 2023-018 Finding Name: Inadequate Monitoring of Subrecipients of the CSLFRF and ERA Programs Finding Condition(s): The Illinois Department of Human Services (IDHS) did not obtain and review periodic performance reports for subrecipients of the COVID-19 – Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) and the Emergency Rental Assistance (ERA) and programs. Name of Contact Person(s): Joseph Wellbaum, Chief Financial Officer – Illinois Department of Human Services Corrective Action(s): The IDHS will develop an organized process to ensure the availability of performance monitoring reports to comply with information requests. Proposed Completion Date: July 1, 2025 – Completed

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Finding 1153987 (2023-017)

Material Weakness 2023

State of Illinois

IL

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

Finding Number: 2023-017 Finding Name: Inadequate Process for Monitoring Interagency Program Expenditures Finding Condition(s): The Illinois Department of Human Services (IDHS) does not have an adequate process for monitoring interagency expenditures claimed under or used to meet maintenance of effo...

Finding Number: 2023-017 Finding Name: Inadequate Process for Monitoring Interagency Program Expenditures Finding Condition(s): The Illinois Department of Human Services (IDHS) does not have an adequate process for monitoring interagency expenditures claimed under or used to meet maintenance of effort (MOE) requirements of the Supplemental Nutrition Assistance Program (SNAP) Cluster, the Temporary Assistance for Needy Families (TANF), and the Child Care Development Fund (CCDF) Cluster programs. Specific issues noted included the following: • Program questionnaires describing internal control procedures for the CCDF program were not obtained by the IDHS from the Illinois Student Assistance Commission, the Illinois Board of Higher Education, and the Illinois Community College Board. Additionally, the program questionnaire describing internal control procedures for the TANF program was not updated for the period under audit by the Department of Children and Family Services, • Quarterly certification reports were not prepared during the period for the CCDF program by the Illinois Student Assistance Commission, the Illinois Board of Higher Education, and the Illinois Community College Board, and • The IDHS did not perform a detailed review of costs claimed from expenditures reported by any of the other State agencies to ensure they met the specific program requirements. The other State agencies do not necessarily know which federal program or maintenance of effort requirement the costs they are providing to the IDHS will be claimed or used and are not able to assess whether the costs are allowable. Further, the IDHS did not assess whether the expenditures reported by other State agencies were paid during fiscal year 2023 to ensure the amounts reported to the Illinois Office of the Comptroller (IOC) and used to prepare the schedule of expenditures of federal awards (SEFA) were cash basis expenditures. Name of Contact Person(s): Sarah Eves, Bureau Chief of General Accounting – Illinois Department of Human Services, Office of Fiscal Services Corrective Action(s): The IDHS’ Bureau of Federal Reporting (Bureau) will contact the program fiscal liaison for all major programs regarding the process of reporting and appropriate use of federal funds by other agencies. Furthermore, the Bureau will request quarterly certifications and program questionnaires for those agencies receiving funds from federal awards. Proposed Completion Date: March 31, 2025 – Completed

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Finding 1153983 (2023-016)

Material Weakness 2023

State of Illinois

IL

Questioned Costs Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.303 § 200.403

Finding Number: 2023-016 Finding Name: Improper TANF Beneficiary Payments Finding Condition(s): The Illinois Department of Human Services (IDHS) made improper payments to beneficiaries of the Temporary Assistance for Needy Families (TANF) program. In addition, the IDHS identified a system error in J...

Finding Number: 2023-016 Finding Name: Improper TANF Beneficiary Payments Finding Condition(s): The Illinois Department of Human Services (IDHS) made improper payments to beneficiaries of the Temporary Assistance for Needy Families (TANF) program. In addition, the IDHS identified a system error in June 2025 impacting beneficiaries whose benefit payments were calculated using diverted income. Name of Contact Person(s): Elizabth Lusk, Social Service Program Planner – Illinois Department of Human Services, Division of Family and Community Services Corrective Action(s): As of June 30, 2025, the IDHS’ Office of Policy and Program Integrity and the IDHS’ Office of Family Community Resource Centers discussed and formulated a plan to ensure payments are properly calculated and paid. Additionally, a training will be provided for caseworkers that pertains to reviewing the case summary for income errors or sanction errors, etc. Proposed Completion Date: June 30, 2026

View Audit 366965 Questioned Costs: $1

Finding 1153982 (2023-015)

Material Weakness 2023

State of Illinois

IL

Subrecipient Monitoring Reporting Matching / Level of Effort / Earmarking § 200.303 § 200.332 § 200.521

Finding Number: 2023-015 Finding Name: Inadequate Review of Subrecipient Single Audit Reports Finding Condition(s): The Illinois Department of Human Services (IDHS) did not adequately review single audit reports received from its subrecipients for the Special Supplemental Nutrition Program for Women...

Finding Number: 2023-015 Finding Name: Inadequate Review of Subrecipient Single Audit Reports Finding Condition(s): The Illinois Department of Human Services (IDHS) did not adequately review single audit reports received from its subrecipients for the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) programs, the Temporary Assistance for Needy Families Cluster (TANF), the CCDF Cluster (CCDF), the Social Services Block Grant (SSBG), and the Block Grants for Prevention and Treatment of Substance Abuse (SAPT) programs on a timely basis. Additionally, the IDHS has not established controls over subrecipient single audit report reviews at an adequate level of precision to ensure single audit reports are received and reviewed timely. Name of Contact Person(s): Brian Bond, Director – Illinois Department of Human Services, Office of Contract Administration Corrective Action(s): The IDHS’ Office of Contract Administration (OCA) staff will meet to coordinate and establish procedures to ensure subrecipient single audit reports are obtained and reviewed within established deadlines. On March 31, 2025, the OCA began to use its IDHS-OCA Procedures for Grantee Extensions of Audit Package Submissions. Proposed Completion Date: June 30, 2025 – Completed

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Finding 1153974 (2023-014)

Material Weakness 2023

State of Illinois

IL

Questioned Costs Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.303 § 200.403

Finding Number: 2023-014 Finding Name: Unallowable Costs Charged to the TANF and CCDF Cluster Programs Finding Condition(s): The Illinois Department of Human Services (IDHS) could not provide documentation to support payments made on behalf of beneficiaries of the Temporary Assistance for Needy Fami...

Finding Number: 2023-014 Finding Name: Unallowable Costs Charged to the TANF and CCDF Cluster Programs Finding Condition(s): The Illinois Department of Human Services (IDHS) could not provide documentation to support payments made on behalf of beneficiaries of the Temporary Assistance for Needy Families (TANF) and CCDF Cluster (CCDF) programs. Additionally, the IDHS had not performed a monitoring review in 2023 or either of the previous two fiscal years to ensure billing information provided by the child care providers is accurate for any of the providers sampled. As a result, IDHS does not have adequate controls in place to ensure information provided by providers is accurate and the related child care payments made were appropriate. Name of Contact Person(s): • Felicia Gray, Associate Director of Operations – Illinois Department of Human Services, Division of Early Childhood • Elizabeth Lusk, Social Service Program Planner – Illinois Department of Human Services, Division of Family and Community Services Corrective Action(s): The IDHS will develop a procedure for periodic reviews of billing certificates for payments entered through the Interactive Voice Response (IVR) system. Additionally, the IDHS will develop forms, notices, and tools needed to implement the review process. Furthermore, the IDHS will develop and implement a communication plan to announce upcoming reviews that includes the Service Employees International Union (SEIU), the Division of Early Childhood (DEC), Child Care Resource and Referrals (CCR&Rs), and all providers using the Interactive Voice Response (IVR). Once these items are developed, the IDHS will determine needed changes to the IDHS’ administrative rules, its Child Care Assistance Program (CCAP) Policy, and its CCDF State Plan response. After obtaining the necessary leadership approvals, the IDHS will begin conducting IVR reviews. Proposed Completion Date: January 1, 2026

View Audit 366965 Questioned Costs: $1

Finding 1153970 (2023-013)

Material Weakness 2023

State of Illinois

IL

Questioned Costs Allowable Costs / Cost Principles Period of Performance § 200.303

Finding Number: 2023-013 Finding Name: Unallowable Costs Charged to the SAPT Program Finding Condition(s): The Illinois Department of Human Services (IDHS) charged subrecipient expenditures to the Block Grants for Prevention and Treatment of Substance Abuse (SAPT) program which were incurred after t...

Finding Number: 2023-013 Finding Name: Unallowable Costs Charged to the SAPT Program Finding Condition(s): The Illinois Department of Human Services (IDHS) charged subrecipient expenditures to the Block Grants for Prevention and Treatment of Substance Abuse (SAPT) program which were incurred after the period of performance ended. Name of Contact Person(s): Christina Miller, Fund Disbursement Manager – Illinois Department of Human Services, Division of Substance Use, Prevention, and Recovery Corrective Action(s): The IDHS established a procedure to run billing data which will be filtered to determine if dates fall outside of the performance period of the grant. Additionally, the IDHS will ensure that any bills that fall outside of the performance period of the grant are paid as separate payments so as not to be paid out of incorrect funds. Proposed Completion Date: October 15, 2024 – Completed

View Audit 366965 Questioned Costs: $1

Finding 1153968 (2023-012)

Material Weakness 2023

State of Illinois

IL

Reporting § 200.303 § 200.502 § 200.510

Finding Number: 2023-012 Finding Name: Inaccurate Reporting of Federal Expenditures Finding Condition(s): The Illinois Department of Human Services (IDHS) did not accurately report federal expenditures, including amounts provided to subrecipients, under the Supplemental Nutrition Assistance (SNAP) C...

Finding Number: 2023-012 Finding Name: Inaccurate Reporting of Federal Expenditures Finding Condition(s): The Illinois Department of Human Services (IDHS) did not accurately report federal expenditures, including amounts provided to subrecipients, under the Supplemental Nutrition Assistance (SNAP) Cluster, the Supplemental Nutrition for Women, Infants, and Children (WIC) programs, the Vocational Rehabilitation (VR) program, the Temporary Assistance for Needy Families (TANF), the Child Care Development Funds (CCDF) Cluster, the Social Services Block Grants (SSBG), the Block Grants for Prevention and Treatment of Substance Abuse (SAPT) program, and the Disability Insurance/SSI (SSDI) Cluster. Specifically, the auditors noted differences between the expenditure amounts provided for audit by the IDHS and the Schedule of Expenditures of Federal Awards (SEFA) amounts reported to the IOC, differences relative to amounts provided to program subrecipients, the cash basis expenditures provided by the IDHS for audit procedures included accrued (not paid) expenditures, and amounts passed through to other State agencies from the IDHS provided by the IDHS for audit procedures included expenditures paid outside of the fiscal year. Finally, IDHS’ controls over reporting federal expenditures were not designed at a sufficient level of precision to ensure complete and accurate reporting in a timely manner. Name of Contact Person(s): Sarah Eves, Bureau Chief – Illinois Department of Human Services, Bureau of General Accounting Corrective Action(s): The IDHS has created a spreadsheet with all federal expenditure data grouped by assistance listing numbers (ALN). The spreadsheet also contains a tab with only the major program expenditure data, which is compared the IDHS’ SEFA totals. Any discrepancies between the reporting methodologies are identified and researched. Proposed Completion Date: September 30, 2024 – Completed

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Finding 1153954 (2023-011)

Material Weakness 2023

State of Illinois

IL

Questioned Costs Eligibility Special Tests & Provisions § 200.303

Finding Number: 2023-011 Finding Name: Failure to Obtain Required Certifications for Child Care Providers Receiving American Rescue Plan Act Stabilization Funds Finding Condition(s): The Illinois Department of Human Services (IDHS) did not obtain the required certifications at the time of applicatio...

Finding Number: 2023-011 Finding Name: Failure to Obtain Required Certifications for Child Care Providers Receiving American Rescue Plan Act Stabilization Funds Finding Condition(s): The Illinois Department of Human Services (IDHS) did not obtain the required certifications at the time of application for certain providers of the Child Care Development Fund (CCDF) Cluster receiving American Rescue Plan Act (ARPA) stabilization funds. Name of Contact Person(s): Felicia Gray, Associate Director– Illinois Department of Human Services, Early Childhood Corrective Action(s): The IDHS’ Division of Early Childhood (DEC) has not received and does not anticipate receiving any new ARPA funding. For future consideration of funding, the IDHS will ensure that, in addition to meeting health and safety requirements, the providers will also complete certifications and attestations that verify that they meet the requirements and eligibility of the program. In addition, the DEC will train appropriate staff to review, identify, and implement any new Child Care grant/funding requirement(s). Proposed Completion Date: May 31, 2024 – Completed

View Audit 366965 Questioned Costs: $1

Finding 1153951 (2023-010)

Material Weakness 2023

State of Illinois

IL

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting § 200.303 § 200.332

Finding Number: 2023-010 Finding Name: Failure to Follow Established Program Subrecipient Monitoring Procedures Finding Condition(s): The Illinois Department of Human Services (IDHS) did not follow its established program monitoring policies and procedures for subrecipients of the Temporary Assistan...

Finding Number: 2023-010 Finding Name: Failure to Follow Established Program Subrecipient Monitoring Procedures Finding Condition(s): The Illinois Department of Human Services (IDHS) did not follow its established program monitoring policies and procedures for subrecipients of the Temporary Assistance for Needy Families (TANF) Cluster, the Childcare Cluster (CCDF), the Social Services Block Grant (SSBG), and the Block Grants for Prevention and Treatment of Substance Abuse (SAPT) programs. More specifically, the IDHS did not perform on-site monitoring reviews of subrecipients in fiscal year 2023 in accordance with IDHS’ planned monitoring schedule and/or could not provide support for the review, did not provide timely notification (within 60 days) of the results of the programmatic on-site reviews, did not complete its quality reviews on a timely basis (within 60 days), did not receive corrective action plans from subrecipients after findings were identified during the reviews, and was unable to provide documentation evidencing monitoring of the quarterly program reports. Name of Contact Person(s): • Elizabth Lusk, Social Service Program Planner – Illinois Department of Human Services, Division of Family and Community Services • Christina Miller, Fund Disbursement Manager – Illinois Department of Human Services, Division of Substance Use, Prevention, and Recovery Corrective Action(s): IDHS - Division of Family and Community Services (FCS) FCS Associate Directors, in conjunction with staff from the Director’s Office, met and reviewed exceptions noted in the fiscal year 2022 single audit to determine any need for updated documentation and communication regarding subrecipient programmatic monitoring. The FCS reviewed the FCS Programmatic Monitoring Guidance Document and made necessary updates. IDHS - Division of Substance Use Prevention and Recovery (SUPR) The SUPR will hire an administrative assistant to assist with compliance monitoring tracking activities to maintain communication about important deadlines. The SUPR will also hire compliance monitors to engage in conducting compliance reviews. Additionally, the SUPR will meet weekly to track monitoring activities to ensure deadlines are met. Finally, the SUPR will review its policy and procedures to assess timelines associated with the monitoring process. Proposed Completion Date: • July 29, 2024 – Completed (FCS) • December 31, 2025 (SUPR)

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Finding 1153944 (2023-009)

Material Weakness 2023

State of Illinois

IL

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.303

Finding Number: 2023-009 Finding Name: Failure to Report Subaward Information Required by FFATA Finding Condition(s): The Illinois Department of Human Services (IDHS) failed to report information required by the Federal Funding Accountability and Transparency Act (FFATA) for awards granted to subrec...

Finding Number: 2023-009 Finding Name: Failure to Report Subaward Information Required by FFATA Finding Condition(s): The Illinois Department of Human Services (IDHS) failed to report information required by the Federal Funding Accountability and Transparency Act (FFATA) for awards granted to subrecipients of the Temporary Assistance for Needy Families (TANF), the CCDF Cluster (CCDF), the Block Grants for Prevention and Treatment of Substance Abuse (SAPT), and the Social Services Block Grant (SSBG) programs. In addition, the IDHS did not establish control procedures to submit FFATA reports for all subawards as required by federal regulations. Name of Contact Person(s): • Christina Miller, Fund Disbursement Manager – Illinois Department of Human Services, Division of Substance Use, Prevention, and Recovery • Brian Bond, Director – Illinois Department of Human Services, Office of Contract Administration Corrective Action(s): IDHS – The Division of Substance Use Prevention and Recovery (SUPR) - The IDHS will complete all backlog of FFATA reports in its grant making system. Additionally, the IDHS will assess and utilize resources in the grant implementation team to assist with entering FFATA data. Finally, the SUPR will cross-train new staff of FFATA reports in the new system. IDHS – The Division of Family and Community Services (FCS) and the Office of Contract Administration (OCA) - The IDHS’s OCA has been working for two fiscal years with the Illinois Department of Innovation and Technology (DoIT) and IL/ACTS to create an automated process to validate federal funds data in the IDHS’ grant making system. OCA, DoIT, and IL/ACTS will be testing the pre-implementation of the automated process to validate federal funds data in March/April 2025 for the FY26 IDHS grant making processes. (Completed 05/31/25) Proposed Completion Date: • March 1, 2026 (SUPR) • May 31, 2025 – Completed (OCA)

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Finding 1153937 (2023-008)

Material Weakness 2023

State of Illinois

IL

Questioned Costs Matching / Level of Effort / Earmarking § 200.303

Finding Number: 2023-008 Finding Name: Failure to Meet the SAPT MOE Requirement Finding Condition(s): The Illinois Department of Human Services (IDHS) did not maintain the required aggregate State expenditures for the maintenance of effort (MOE) requirements for the Block Grants for Prevention and T...

Finding Number: 2023-008 Finding Name: Failure to Meet the SAPT MOE Requirement Finding Condition(s): The Illinois Department of Human Services (IDHS) did not maintain the required aggregate State expenditures for the maintenance of effort (MOE) requirements for the Block Grants for Prevention and Treatment of Substance Abuse (SAPT) program. In addition, the IDHS has not established internal control procedures to monitor whether maintenance of effort requirements are met. Name of Contact Person(s): Christina Miller, Fund Disbursement Manager – Illinois Department of Human Services, Division of Substance Use, Prevention, and Recovery Corrective Action(s): The IDHS has established a procedure to run quarterly expenditure reports on the fund sources identified in the approved MOE methodology and to compare them to the expected expenditures. Additionally, grant managers will continue to communicate with providers who are funded by MOE identified fund sources that are under-utilized to understand possible reasons and provide technical assistance if needed. Proposed Completion Date: March 15, 2024 – Completed

View Audit 366965 Questioned Costs: $1

Finding 1153935 (2023-007)

Material Weakness 2023

State of Illinois

IL

Questioned Costs Matching / Level of Effort / Earmarking Eligibility § 200.303

Finding Number: 2023-007 Finding Name: Missing Documentation in Beneficiary Files Finding Condition(s): The Illinois Department of Human Services (IDHS) could not locate case file documentation supporting certain eligibility and special test requirements for beneficiaries of the Temporary Assistance...

Finding Number: 2023-007 Finding Name: Missing Documentation in Beneficiary Files Finding Condition(s): The Illinois Department of Human Services (IDHS) could not locate case file documentation supporting certain eligibility and special test requirements for beneficiaries of the Temporary Assistance for Needy Families (TANF) program. Furthermore, the IDHS does not have adequate resources to perform and document eligibility determinations and has not established appropriate monitoring procedures to ensure eligibility determinations are properly documented in accordance with program requirements. Name of Contact Person(s): Angela Imhoff, Acting Associate Director – Illinois Department of Human Services, Division of Family and Community Services Corrective Action(s): As of February 20, 2025, the IDHS’ Associate Director met with the regional administrators to discuss the ongoing importance of ensuring the Responsibility Service Plan (RSP) signatures are captured through the manual process. In addition, an enhancement request has been filed with a vendor that will allow telephonic signatures for the RSPs in the Integrated Eligibility System (IES). Additionally, as of February 20, 2025, the Associate Director discussed with the regional administrators the ongoing need to review the manual 1611 process throughout the regions. Finally, the IDHS will work toward automating the 1611 process in the IES in collaboration with an Illinois Department of Healthcare and Family Services child support system update. Proposed Completion Date: December 31, 2026

View Audit 366965 Questioned Costs: $1

Finding 1153923 (2023-006)

Material Weakness 2023

State of Illinois

IL

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303

Finding Number: 2023-006 Finding Name: Inadequate Procedures to Determine Accuracy of the Post-Expenditure Report Finding Condition(s): The Illinois Department of Human Services (IDHS) failed to provide supporting documentation for the post-expenditure report including a key line item, the number of...

Finding Number: 2023-006 Finding Name: Inadequate Procedures to Determine Accuracy of the Post-Expenditure Report Finding Condition(s): The Illinois Department of Human Services (IDHS) failed to provide supporting documentation for the post-expenditure report including a key line item, the number of eligible individuals who received services paid for in part or in whole with federal funds under the Social Services Block Grant (Title XX) program. Name of Contact Person(s): Elizabeth Lusk, Social Services Program Planner Director Operations – Illinois Department of Human Services, Division of Family and Community Services Corrective Action(s): The IDHS emailed notifications to all grantees of the requirement to include a client identifier when reporting the number of eligible clients served. (Completed 07/01/24).Additionally, the IDHS will update its FY26 Title XX Program Manual to include client identifier as a reporting requirement. The update will also include the process of how and when the data will be collected. (Completed 06/06/25) Finally, the IDHS will shift from annual to quarterly reporting for the post-expenditure report. This change will ensure the report is complete, accurate, and properly supported. (Completed 04/18/25) Proposed Completion Date: June 6, 2025 – Completed

View Audit 366965

Finding 1153922 (2023-005)

Material Weakness 2023

State of Illinois

IL

Subrecipient Monitoring Reporting § 200.303 § 200.328

Finding Number: 2023-005 Finding Name: Failure to Accurately Prepare Financial Reports for the COVID-19 – Homeowner Assistance Fund Program Finding Condition(s): The Illinois Department of Human Services (IDHS) did not prepare accurate federal financial reports (Paperwork Reduction Act (PRA) 1505-02...

Finding Number: 2023-005 Finding Name: Failure to Accurately Prepare Financial Reports for the COVID-19 – Homeowner Assistance Fund Program Finding Condition(s): The Illinois Department of Human Services (IDHS) did not prepare accurate federal financial reports (Paperwork Reduction Act (PRA) 1505-0269) for the COVID-19 – Homeowner Assistance Fund (HAF) program. Additionally, the auditors noted that the IDHS’ supervisory review procedures of the PRA 1505-0269 reports have not been designed to operate at an appropriate level of precision to ensure the financial reports are accurately prepared. Name of Contact Person(s): Joseph Wellbaum, Chief Financial Officer – Illinois Department of Human Services Corrective Action(s): The IDHS will issue the updated quarterly Treasury data templates to the Illinois Housing Development Authority to collect all necessary data fields in order to accurately report and reconcile HAF expenditure information. (Completed 12/31/23) The IDHS and the Illinois Housing Development Authority will meet with the U.S. Treasury to clarify quarterly and annual reporting needs for the HAF program. (Completed 12/15/22) Proposed Completion Date: December 31, 2023 – Completed

View Audit 366965

Finding 1153921 (2023-004)

Material Weakness 2023

State of Illinois

IL

Subrecipient Monitoring § 200.303 § 200.332

Finding Number: 2023-004 Finding Name: Failure to Establish Subrecipient Monitoring Procedures Finding Condition(s): The Illinois Department of Human Services (IDHS) did not perform a risk assessment or subrecipient monitoring procedures for the subrecipient of the COVID-19 – Homeowner Assistance Fu...

Finding Number: 2023-004 Finding Name: Failure to Establish Subrecipient Monitoring Procedures Finding Condition(s): The Illinois Department of Human Services (IDHS) did not perform a risk assessment or subrecipient monitoring procedures for the subrecipient of the COVID-19 – Homeowner Assistance Fund (HAF) program. Name of Contact Person(s): Joseph Wellbaum, Chief Financial Officer – Illinois Department of Human Services Corrective Action(s): On September 10, 2024, the IDHS completed a fiscal and administrative review of the Illinois Housing Development Authority. Additionally, on March 5, 2024, the IDHS will complete a thorough programmatic review of the HAF program. Proposed Completion Date: September 10, 2024 – Completed

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Finding 1153920 (2023-003)

Material Weakness 2023

State of Illinois

IL

Subrecipient Monitoring Reporting Matching / Level of Effort / Earmarking § 200.303 § 200.328

Finding Number: 2023-003 Finding Name: Failure to Accurately Prepare Performance Reports for the COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Program Finding Condition(s): The Illinois Governor’s Office of Management and Budget (GOMB) did not prepare accurate federal project and expe...

Finding Number: 2023-003 Finding Name: Failure to Accurately Prepare Performance Reports for the COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Program Finding Condition(s): The Illinois Governor’s Office of Management and Budget (GOMB) did not prepare accurate federal project and expenditure reports (Paperwork Reduction Act (PRA) 1505-0271) for the COVID-19 – Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) program. Name of Contact Person(s): Lesley Winbush, Accountant – Illinois Governor’s Office of Management and Budget Corrective Action(s): GOMB will improve the reporting process by implementing checks to ensure that all expenditures are reported by State agencies. The checks will include comparing reported data against agency financial reports to ensure that the data is complete. Proposed Completion Date: June 30, 2026

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Finding 1153918 (2023-002)

Material Weakness 2023

State of Illinois

IL

Subrecipient Monitoring Reporting Matching / Level of Effort / Earmarking § 200.303 § 200.332 § 200.521

Finding Number: 2023-002 Finding Name: Inadequate Monitoring of Subrecipient Single Audit Reviews Finding Condition(s): The State of Illinois did not establish adequate controls to monitor the completion and documentation of the single audit reports reviews for its subrecipients of the Special Suppl...

Finding Number: 2023-002 Finding Name: Inadequate Monitoring of Subrecipient Single Audit Reviews Finding Condition(s): The State of Illinois did not establish adequate controls to monitor the completion and documentation of the single audit reports reviews for its subrecipients of the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), Child and Adult Care Food Program (CACFP), Crime Victims Assistance Program (CVA), WIOA Cluster (WIOA), Highway and Planning Construction (Highway), Emergency Rental Assistance Program (ERAP), Homeowner Assistance Fund Program (HAF), Coronavirus State and Local Fiscal Recovery Funds (SLFRF), Twenty-First Century Community Learning Centers (Twenty-First), Title I Grants to Local Education Agencies (Title I), Supporting Effective Instruction State Grants (SEISG), Education Stabilization Funds (ESF), Epidemiology and Laboratory Capacity for Infectious Diseases (ELC), Temporary Assistance for Needy Families Cluster (TANF), Child Support Enforcement (CSE), Low-Income Home Energy Assistance Program (LIHEAP), CCDF Cluster (CCDF), Social Services Block Grant (SSBG), and Block Grants for Prevention and Treatment of Substance Abuse (SAPT) in the State's Grant Accountability and Transparency Act (GATA) Audit Report Review Management System (ARRMS). Name of Contact Person(s): Keyria Rodgers, Grant Accountability and Transparency Unit Director – Illinois Governor’s Office of Management and Budget Corrective Action(s): The Grant Accountability and Transparency Unit (GATU) provides a centralized, uniform process and a system which State grant-making agencies are required to adhere to throughout the life cycle of the grant. The Illinois Governor’s Office of Management and Budget (GOMB) will develop and implement monitoring procedures to ensure the system is updated by agencies and accurate as to the completeness of the agencies’ report reviews, letter issuances, and desk reviews. Proposed Completion Date: December 31, 2025

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Finding 1152977 (2023-007)

Material Weakness 2023

Second Harvest Northern Lakes Food Bank

MN

Cash Management Internal Control / Segregation of Duties Subrecipient Monitoring § 200.303

The Accountant prepares reimbursement requests and the Contracted Controller reviews and approves reimbursement before submission is submitted.

View Audit 366283

Finding 576441 (2023-053)

Material Weakness 2023

State of Nevada

NV

Allowable Costs / Cost Principles Eligibility Material Weakness § 200.303

Finding 2023-053 Program Information Program Name: Children’s Health Insurance Program (CHIP) CFDA Number: 93.767 Summary of Finding Eligibility Material Weakness in Internal Control over Compliance Agency Response The agency agrees with this finding. Corrective Action Plan DSS has enhanced internal...

Finding 2023-053 Program Information Program Name: Children’s Health Insurance Program (CHIP) CFDA Number: 93.767 Summary of Finding Eligibility Material Weakness in Internal Control over Compliance Agency Response The agency agrees with this finding. Corrective Action Plan DSS has enhanced internal controls to ensure CHIP applications are accurately processed and properly documented. Procedures have been reinforced to require that all applications and supporting documentation are consistently reindexed to the correct case file when a pseudo-SSN is updated, that each application carries a clear date stamp, and that records are fully maintained in DIS. In addition, DSS relies on its Quality Control (QC) unit to conduct post-eligibility reviews, validate determinations, and identify corrective actions when necessary. Together, these measures ensure that applications are complete, accessible, and compliant with program requirements. Contact Person(s) Responsible Karen Stoycoff, Social Services Program Specialist Phone: 775-684-7436 Email: kstoycoff@dss.nv.gov Anticipated Completion Date September 30th, 2025.

View Audit 366218

Corrective Action Plans

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