Corrective Action Plans

Finding 384904 (2023-027)

Significant Deficiency 2023

State of Vermont

VT

Procurement, Suspension & Debarment Eligibility Significant Deficiency § 200.303

The case was mistakenly closed on 6/30/23 based on non-response to an income verification request. A verification notice was sent 6/12/2023. The member did not respond to this notice. The member should then have received notice of termination effective 7/31/2023. The case was not processed for clos...

The case was mistakenly closed on 6/30/23 based on non-response to an income verification request. A verification notice was sent 6/12/2023. The member did not respond to this notice. The member should then have received notice of termination effective 7/31/2023. The case was not processed for closure and appropriate notice was not sent because a system error caused this member to be classified as a new applicant instead of enrollee. This was likely due to case-specific circumstances of timing and household eligibility (other members were no longer eligible for Medicaid). Further, because they were classified as a new applicant, they received an additional verification notice (even though coverage was already terminated) and were ultimately “denied” for non-response in late July. As corrective action, we reinstated CHIP back to 7/1/2023 through 10/31/2023 after sending proper closure notice for failure to respond. Based on our internal QA process, Medicaid Recon and HCQC unit’s internal case reviews, no other incidents of this condition were found as of 10/2/2023. Scheduled Completion Date of Corrective Action Plan: Completed Contacts for Corrective Action Plan: Nicole McAllister, DVHA-HAEEU HCAA II nicole.mcallister@vermont.gov Sarah York, DVHA-HAEEU HCAA I sarah.york@vermont.gov Peter Moino, AHS Director of Internal Audit peter.moino@vermont.gov

View Audit 297960

Finding 384903 (2023-026)

Significant Deficiency 2023

State of Vermont

VT

Questioned Costs Eligibility Student Financial Aid § 200.303

DCF has updated the eligibility determination procedure document and referenced checklists to ensure that there are additional reviews of the manual data entry and its processing in the data system (SSMIS). There is a process in place by which any cases where manual data entry causes erroneous IV-E ...

DCF has updated the eligibility determination procedure document and referenced checklists to ensure that there are additional reviews of the manual data entry and its processing in the data system (SSMIS). There is a process in place by which any cases where manual data entry causes erroneous IV-E draws, the Department will make changes in the data system and return IV-E funds erroneously claimed within one quarter of the mistake being identified. Scheduled Completion Date of Corrective Action Plan: January 1, 2024 Contact for Corrective Action Plan: Gillie Hopkins, DCF-FSD Permanency Planning Program Manager gillie.hopkins@vermont.gov Barbara Joyal, DCF-FSD System of Care Unit Director barbara.joyal@vermont.gov Beth Sausville, DCF-FSD System of Care Unit Director beth.sausville@vermont.gov Ed Dwinell, DCF Business Office, Financial Director ed.dwinell@vermont.gov Peter Moino, AHS Director of Internal Audit peter.moino@vermont.gov

View Audit 297960 Questioned Costs: $1

Finding 384902 (2023-025)

Significant Deficiency 2023

State of Vermont

VT

Procurement, Suspension & Debarment Significant Deficiency § 200.303 § 200.324

The Division Administrator and the Division Director will create a central location for all supporting procurement documentation related to the division. This documentation will include but is not limited to the original RFP, bids, award selection criteria and bid review. Procurement documentation w...

The Division Administrator and the Division Director will create a central location for all supporting procurement documentation related to the division. This documentation will include but is not limited to the original RFP, bids, award selection criteria and bid review. Procurement documentation will be stored electronically according to the most current records retention schedule and be made available for review upon request. Scheduled Completion Date of Corrective Action Plan: 3/1/2024 Contacts for Corrective Action Plan: Danielle Tucker, VDH Division Administrator danielle.tucker@vermont.gov William Moran, VDH Division Director william.moran@vermont.gov Megan Hoke, VDH Financial Director megan.hoke@vermont.gov Peter Moino, AHS Director of Internal Audit peter.moino@vermont.gov

View Audit 297960

Finding 384901 (2023-024)

Material Weakness 2023

State of Vermont

VT

Subrecipient Monitoring Material Weakness Reporting § 200.303

The Financial Administrator will ensure that subrecipient grants containing federal funding that meet the FFATA reporting threshold are marked as “required for entry into the FSRS system” upon grant execution. The Financial Administrator and Manager will then confirm that all executed agreements tha...

The Financial Administrator will ensure that subrecipient grants containing federal funding that meet the FFATA reporting threshold are marked as “required for entry into the FSRS system” upon grant execution. The Financial Administrator and Manager will then confirm that all executed agreements that meet the FFATA reporting requirement have been entered and submitted into the FSRS system by the last business day of each month. Please note that the scheduled completion date is 2/1/23 as the same FFATA reporting finding was identified for a different program during the SFY22 Single Audit, and the corrective action plan was applied across the Department as a whole. The FFATA issues identified in the SFY23 Single Audit pre-dated the implementation of our corrective action plan. Scheduled Completion Date of Corrective Action Plan: 2/1/2023 Contacts for Corrective Action Plan: Lillian Smith, VDH Financial Administrator lillian.smith@vermont.gov Jessica Brown, VDH Financial Manager jessica.p.brown@vermont.gov Megan Hoke, VDH Financial Director megan.hoke@vermont.gov Peter Moino, AHS Director of Internal Audit peter.moino@vermont.gov

View Audit 297960

Finding 384899 (2023-023)

Significant Deficiency 2023

State of Vermont

VT

Cash Management Allowable Costs / Cost Principles Significant Deficiency § 200.303 § 200.514

The Agency of Human Services receives funding under ALN 93.568 and is responsible for reporting the federal interest liability for this program to the Department of Finance and Management. The Agency of Human Services previously relied on the Department of Finance and Management for notification of ...

The Agency of Human Services receives funding under ALN 93.568 and is responsible for reporting the federal interest liability for this program to the Department of Finance and Management. The Agency of Human Services previously relied on the Department of Finance and Management for notification of the annual interest rate. Going forward, the Agency of Human Services will obtain the annual interest rate directly from the CMIA website: Cash Management Improvement Act - Annual Interest Rates (treasury.gov). The Department of Finance and Management will also verify the Agency of Human Services’ submission prior to submitting the CMIA Annual Report to the US Department of the Treasury. Position Responsible for Implementation of Corrective Action Candace Elmquist Financial Director Candace.Elmquist@vermont.gov Peter Moino Director of Internal Audit Peter.Moino@vermont.gov Date of Implementation of Corrective Action: Completed: 2/6/2024

View Audit 297960

Finding 384897 (2023-022)

Significant Deficiency 2023

State of Vermont

VT

Reporting § 200.303

The Department for Children and Families (DCF) recognizes the need to process and file reports timely. In future instances of communication around reports being unavailable and having to file reports off-cycle, the DCF business office will save e-mail communication and ask for transcriptions of meet...

The Department for Children and Families (DCF) recognizes the need to process and file reports timely. In future instances of communication around reports being unavailable and having to file reports off-cycle, the DCF business office will save e-mail communication and ask for transcriptions of meetings. The DCF business office has also established an electronic report-tracking sheet and whiteboard to monitor quarterly reporting status. Scheduled Completion Date of Corrective Action Plan: 10/1/23 Contacts for Corrective Action Plan: Ed Dwinell, DCF Financial Director II ed.dwinell@vermont.gov Shawn Benham, DCF Financial Director III shawn.benham@vermot.gov Peter Moino, AHS Director of Internal Audit peter.moino@vermont.gov

View Audit 297960

Finding 384895 (2023-021)

Significant Deficiency 2023

State of Vermont

VT

Subrecipient Monitoring Reporting Significant Deficiency § 200.303

Due to staff vacancies and turnover that arose in the DCF Quality Assurance & Reporting (QA&R) team during the summer of 2022, there was insufficient intra-team communication and training regarding FFATA reporting requirements. As of January 1, 2024, then, formal procedures and training will be put...

Due to staff vacancies and turnover that arose in the DCF Quality Assurance & Reporting (QA&R) team during the summer of 2022, there was insufficient intra-team communication and training regarding FFATA reporting requirements. As of January 1, 2024, then, formal procedures and training will be put in place to ensure all QA&R staff are prepared to execute their responsibilities pertaining to FFATA reporting requirements. Further, in order to monitor FFATA reporting compliance going forward, AHS Internal Audit Group (IAG) will include LIHEAP subawards in its annual review. Scheduled Completion Date of the Corrective Action Plan: January 1, 2024: FFATA reporting procedures and training in place and operating. December 31, 2024: Annual review of FFATA rules and regulations including subawards review. Contacts for Corrective Action Plan: Melanie Rutledge, DCF Financial Director I melanie.rutledge@vermont.gov Megan Smeaton, DCF Financial Director IV megan.smeaton@vermont.gov Peter Moino, AHS Director of Internal Audit peter.moino@vermont.gov

View Audit 297960

Finding 384889 (2023-020)

Significant Deficiency 2023

State of Vermont

VT

Subrecipient Monitoring § 200.303 § 200.332

UEI Missing - This issue was mainly caused by a mid-year change by our federal partners when they moved from the DUNS number to the UEI numbers. Our GMS system adjusted for the change but some of our grant awards did not include UEI numbers at that time. We will raise this issue with our Vendor to...

UEI Missing - This issue was mainly caused by a mid-year change by our federal partners when they moved from the DUNS number to the UEI numbers. Our GMS system adjusted for the change but some of our grant awards did not include UEI numbers at that time. We will raise this issue with our Vendor to ensure the UEI shows on all awards going forward. We will also make sure the UEI is reviewed during our grant review process. Obligation by this action- This is an issue with how our GMS processes grant amendments, on amendments beyond the first amendment the GMS shows the total change vs the change for this action. AOE will raise this issue with our vendor and will try to get it corrected prior to when FY25 grant amendments are processed. This will be a critical request to our Vendor. Position Responsible for Implementation of Corrective Action Name: Sean Cousino Position: Deputy CFO Email: sean.couisno@vermont.gov Phone Number: 802 595-3693 Date of Implementation of Corrective Action: 10/01/2024

View Audit 297960

Finding 384883 (2023-019)

Material Weakness 2023

State of Vermont

VT

Special Tests & Provisions Material Weakness Matching / Level of Effort / Earmarking § 200.303

The Agency has started implementing this process July 1, 2023 as a component of last year’s corrective action plan. The Agency will identify if a new ESEA Federal grant (or a grant based on an ESEA program) includes an Equitable Service requirement during the program completion of the “New Grant ...

The Agency has started implementing this process July 1, 2023 as a component of last year’s corrective action plan. The Agency will identify if a new ESEA Federal grant (or a grant based on an ESEA program) includes an Equitable Service requirement during the program completion of the “New Grant Checklist”. If a new grant includes an Equitable Service requirement, the ESEA Equitable Service’s Ombudsman will be notified and will work with the grant program manager to ensure the build of the GMS application includes the correct level of detail and controls to meet the SEA requirements for oversight. When appropriate, the Agency will use its process for handling of Equitable Services associated with the Consolidated Federal Programs as models for determining the correct calculation method. The Agency will utilize built in business rules and internal controls within the Grants Management System (GMS) to gather the following information in the grant application for AOE review and approval prior to issuing a grant award agreement: 1. Calculation of the total proportionate share dollars an LEA must set aside for Equitable Services 2. Identification of Independent Schools participating in Equitable Services applicable to each LEA 3. Calculation of the dollars available for Equitable Services for each participating Independent School For each Federal grant that requires an equitable services component, the Agency will document the review and approval of the Equitable Services information through one of two processes prior to the grant award agreement: 1. A dedicated review assignment specific to equitable services, or 2. Verification statements on the review checklist for a general application reviewer Position Responsible for Implementation of Corrective Action Name: Deborah Bloom, Assistant Director, Federal and Education Support Programs Position: Assistant Director Email: deborah.bloom@vermont.gov Phone Number: 802-828-1390 Date of Implementation of Corrective Action: July 1, 2023

View Audit 297960

Finding 384877 (2023-018)

Material Weakness 2023

State of Vermont

VT

Subrecipient Monitoring Material Weakness Reporting § 200.303

To address the accuracy and timeliness of our entries into the FFATA system, we will use the USASPENDING.GOV website to assist us in reconciling what has been entered into the FFATA system. This will allow us to ensure that our grant ledgers agree with what is entered into FFATA. In March 2023 we s...

To address the accuracy and timeliness of our entries into the FFATA system, we will use the USASPENDING.GOV website to assist us in reconciling what has been entered into the FFATA system. This will allow us to ensure that our grant ledgers agree with what is entered into FFATA. In March 2023 we started reconciliations and plan to continue reconciling a couple times each year. The work will be done by the Deputy CFO or position assigned by the Deputy CFO. We will also implement a process that will have all the steps necessary for a grant award or an amendment to ensure it is posted properly within our internal files and the external systems. This will ensure that new awards and amendments get routed and entered in the FFATA system timely. We will look into the Batch upload process to allow for data to be entered into the system easier. Position Responsible for Implementation of Corrective Action Name: Sean Cousino Position: Deputy CFO Email: sean.couisno@vermont.gov Phone Number: 802 595-3693 Date of Implementation of Corrective Action: 5/01/2024

View Audit 297960

Finding 384876 (2023-017)

Significant Deficiency 2023

State of Vermont

VT

Subrecipient Monitoring § 200.303 § 200.332

UEI Missing - This issue was mainly caused by a mid-year change by our federal partners when they moved from the DUNS number to the UEI numbers. Our GMS system adjusted for the change but some of our grant awards did not include UEI numbers at that time. We will raise this issue with our Vendor to...

UEI Missing - This issue was mainly caused by a mid-year change by our federal partners when they moved from the DUNS number to the UEI numbers. Our GMS system adjusted for the change but some of our grant awards did not include UEI numbers at that time. We will raise this issue with our Vendor to ensure the UEI shows on all awards going forward. We will also make sure the UEI is reviewed during our grant review process. Obligation by this action- This is an issue with how our GMS processes grant amendments, on amendments beyond the first amendment the GMS shows the total change vs the change for this action. AOE will raise this issue with our vendor and will try to get it corrected prior to when FY25 grant amendments are processed. This will be a critical request to our Vendor. Position Responsible for Implementation of Corrective Action Name: Sean Cousino Position: Deputy CFO Email: sean.cousino@vermont.gov Phone Number: 802 595-3693 Date of Implementation of Corrective Action: 10/01/2024

View Audit 297960

Finding 384875 (2023-016)

Significant Deficiency 2023

State of Vermont

VT

Subrecipient Monitoring Reporting Significant Deficiency § 200.303

To address the accuracy and timeliness of our entries into the FFATA system, we will use the USASPENDING.GOV website to assist us in reconciling what has been entered into the FFATA system. This will allow us to ensure that our grant ledgers agree with what is entered into FFATA. In March 2023 we s...

To address the accuracy and timeliness of our entries into the FFATA system, we will use the USASPENDING.GOV website to assist us in reconciling what has been entered into the FFATA system. This will allow us to ensure that our grant ledgers agree with what is entered into FFATA. In March 2023 we started reconciliations and plan to continue reconciling a couple times each year. The work will be done by the Deputy CFO or position assigned by the Deputy CFO. We will also implement a process that will have all the steps necessary for a grant award or an amendment to ensure it is posted properly within our internal files and the external systems. This will ensure that new awards and amendments get routed and entered in the FFATA system timely. We will look into the Batch upload process to allow for data to be entered into the system easier. Position Responsible for Implementation of Corrective Action Name: Sean Cousino Position: Deputy CFO Email: sean.couisno@vermont.gov Phone Number: 802 595-3693 Date of Implementation of Corrective Action: 5/01/2024

View Audit 297960

Finding 384874 (2023-015)

Significant Deficiency 2023

State of Vermont

VT

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

AOE will do review training to ensure all positions processing reimbursement requests fully understand what is required for backup on payment requests. This training will be conducted jointly by the business office and our compliance team and will be completed by the end of FY24 and will include th...

AOE will do review training to ensure all positions processing reimbursement requests fully understand what is required for backup on payment requests. This training will be conducted jointly by the business office and our compliance team and will be completed by the end of FY24 and will include the following key points. 1. Verity the entity on the backup. 2. The period of reimbursement matches the reimbursement request period. 3. The amount on the backup must be the same and cannot be higher (or lower) than the request. Position Responsible for Implementation of Corrective Action Name: Sean Cousino Position: Deputy CFO Email: sean.couisno@vermont.gov Phone Number: 802 595-3693 Date of Implementation of Corrective Action: 7/01/2024

View Audit 297960

Finding 384870 (2023-014)

Significant Deficiency 2023

State of Vermont

VT

Subrecipient Monitoring § 200.303 § 200.332

This is an issue with how our GMS processes grant amendments. On amendments beyond the first amendment the GMS shows the total change vs the change for this action. AOE will raise this issue with our vendor and will try to get it corrected prior to when FY25 grant amendments are processed. This wil...

This is an issue with how our GMS processes grant amendments. On amendments beyond the first amendment the GMS shows the total change vs the change for this action. AOE will raise this issue with our vendor and will try to get it corrected prior to when FY25 grant amendments are processed. This will be a critical request to our Vendor. Position Responsible for Implementation of Corrective Action Name: Sean Cousino Position: Deputy CFO Email: sean.couisno@vermont.gov Phone Number: 802 595-3693 Date of Implementation of Corrective Action: 10/01/2024

View Audit 297960

Finding 384866 (2023-013)

Significant Deficiency 2023

State of Vermont

VT

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

AOE will do review training to ensure all positions processing reimbursement requests fully understand what is required for backup on payment requests. This training will be conducted jointly by the business office and our compliance team and will be completed by the end of FY24 and will include th...

AOE will do review training to ensure all positions processing reimbursement requests fully understand what is required for backup on payment requests. This training will be conducted jointly by the business office and our compliance team and will be completed by the end of FY24 and will include the following key points. 1. Verity the entity on the backup. 2. The period of reimbursement matches the reimbursement request period. 3. The amount on the backup must be the same and cannot be higher (or lower) than the request. Position Responsible for Implementation of Corrective Action Name: Sean Cousino Position: Deputy CFO Email: sean.couisno@vermont.gov Phone Number: 802 595-3693 Date of Implementation of Corrective Action: 7/01/2024

View Audit 297960

Finding 384862 (2023-012)

Significant Deficiency 2023

State of Vermont

VT

Cash Management § 200.303 § 200.514

In March 2023, AOE implemented a new process that is more automated to ensure accuracy and timeliness of our CMIA draws. We have created a new draw sheet that will be more easily loaded and will be reconciled a couple times a year. The Deputy CFO or person assigned by the Deputy CFO will perform a...

In March 2023, AOE implemented a new process that is more automated to ensure accuracy and timeliness of our CMIA draws. We have created a new draw sheet that will be more easily loaded and will be reconciled a couple times a year. The Deputy CFO or person assigned by the Deputy CFO will perform a reconciliation at least two times a year. Position Responsible for Implementation of Corrective Action Name: Sean Cousino Position: Deputy CFO Email: sean.couisno@vermont.gov Phone Number: 802 595-3693 Date of Implementation of Corrective Action: 3/15/2023

View Audit 297960

Finding 384860 (2023-011)

Significant Deficiency 2023

State of Vermont

VT

Subrecipient Monitoring Reporting § 200.208 § 200.303 § 200.332 § 200.425 § 200.513

FAIN (Federal Award Identification Number) and Federal Award Date: The following action has been implemented to include the FAIN & Award date on all awards for ALN 20.509: All awards executed for Public Transit will include a “Grant Insert Sheet”. The Grant Insert Sheet will be identified on the Par...

FAIN (Federal Award Identification Number) and Federal Award Date: The following action has been implemented to include the FAIN & Award date on all awards for ALN 20.509: All awards executed for Public Transit will include a “Grant Insert Sheet”. The Grant Insert Sheet will be identified on the Part 1 Grant award detail document. Box “36” titled FAIN, will include text that reads “See attachment B”. The Grant Insert Sheet is a document that is completed by the Public Transit Unit and is provided to the Grants Unit for award execution. This sheet includes detailed information related to the award. To address the deficiency, The Grant Insert sheet has been updated to include FAIN Numbers and the Federal Award Date. To ensure the Agency of Transportation meets this compliance requirement, the Grants Unit will verify this information is included prior to award execution. Anticipated completion date: This action went into effect as of January 12, 2024. Person Responsible for Corrective Action: Ross MacDonald, Public Transit Program Manager ross.macdonald@vermont.gov Tricia Scribner, Grants Unit Manager tricia.scribner@vermont.gov Management Review Schedules In the past, The Public Transit Program has used the State Fiscal year for the timing/scheduling of the 3-year Management Reviews. For example, if the completion of the last Management Review occurred in FY 2020, then we would ensure a new Management Review began at any time during FY2023. We understand this could lead to more than exactly 3 years between these reviews. Due to this finding, we will now establish a starting month/date for each provider, with 3-year intervals between the start of each Management Review. We have attached the updated schedule and will adhere to this from this day forward. Anticipated completion date: As of December 27, 2023, the updated Management Review Schedule is in effect. Person Responsible for Corrective Action: Ross MacDonald, Public Transit Program Manager ross.macdonald@vermont.gov

View Audit 297960

Finding 384859 (2023-010)

Significant Deficiency 2023

State of Vermont

VT

Subrecipient Monitoring Reporting § 200.303 § 200.332

The Agency had last year recognized a need to provide training and technical assistance to State Agencies and Departments. The Agency provided Uniform Guidance training in February and March of 2023. The Agency developed and delivered a subrecipient monitoring framework which included tools to fac...

The Agency had last year recognized a need to provide training and technical assistance to State Agencies and Departments. The Agency provided Uniform Guidance training in February and March of 2023. The Agency developed and delivered a subrecipient monitoring framework which included tools to facilitate subrecipient risk assessments, subrecipient monitoring plans based on the initial risk assessments, testing of transaction records, desk reviews of subrecipients, and corrective action plans. The Agency performed desk reviews for agencies and departments in the first six months of Fiscal Year 2024. As part of the desk review process, preliminary reports are issued, mitigation opportunities are presented, mitigation opportunities are implemented as appropriate, and final reports are shared across staff and management. The Agency will continue to provide oversight and monitoring for agency adherence to subrecipient monitoring procedures, informed by our ongoing agency and program-level compliance risk assessments, which include factors such as program complexity and history of audit findings. Scheduled Completion Date of Corrective Action Plan: Completed: July, 2023: Subrecipient Monitoring Framework Provided to Agencies & Departments Completed: December, 2023: Sampling completed by Agency Expected: April, 2024: Post-Sampling Follow-up with Agencies and Departments Expected: June, 2024: Continuing Monitoring and Technical Assistance Processes Expected: June, 2024: Additional Training for Agencies and Departments Contacts for Corrective Action Plan: Douglas Farnham Chief Recovery Officer, Vermont State Recovery Office Douglas.Farnham@vermont.gov (802) 585-8119 Ethan Hurley Director of Finance & Operations, Vermont State Recovery Office Ethan.Hurley@vermont.gov (802) 461-5317

View Audit 297960

Finding 384858 (2023-009)

Material Weakness 2023

State of Vermont

VT

Matching / Level of Effort / Earmarking Subrecipient Monitoring Material Weakness § 200.303

The reporting portal of the U.S. Treasury changes on an almost quarterly basis. These changes include new data requirements, added/changed functionality, and new data verification mechanisms. The incredibly small group of dedicated reporters for the Agency does their best to ensure that every new c...

The reporting portal of the U.S. Treasury changes on an almost quarterly basis. These changes include new data requirements, added/changed functionality, and new data verification mechanisms. The incredibly small group of dedicated reporters for the Agency does their best to ensure that every new change in the portal process is recognized and incorporated into our processes and that the data in the portal matches what we have on file. Regarding the reporting period in question, current period obligations were inadvertently not reported at the individual project level due to an error in an internal data query used to generate the project upload templates used to enter data into the portal. The error went unnoticed by Agency staff partially because verification of cumulative obligations and total current period obligations, which is automatically verified in the portal and double checked by Agency staff, was successful which suggested there were no issues with the uploaded data. After researching the issue, Agency staff discovered that the data provided at the project level is not used in any auto calculations in the portal and there are no verification mechanisms in place within the portal to ensure it is accurate. Moving forward, the Agency will initiate a new process. A primary review of the templates will be conducted by an individual other than the individual that has prepared the templates before uploading. Additionally, a review of the portal data by a multi-person team will be completed before the portal data is certified. Scheduled Completion Date of Corrective Action Plan: Expected: April, 2024: New processes integrated into FY24 Q3 Reporting Cycle Contacts for Corrective Action Plan: Douglas Farnham Chief Recovery Officer, Vermont State Recovery Office Douglas.Farnham@vermont.gov (802) 585-8119 Ethan Hurley Director of Finance & Operations, Vermont State Recovery Office Ethan.Hurley@vermont.gov (802) 461-5317

View Audit 297960

Finding 384856 (2023-008)

Significant Deficiency 2023

State of Vermont

VT

Allowable Costs / Cost Principles Period of Performance Subrecipient Monitoring § 200.303 § 200.308 § 200.309 § 200.403

The Department will review its procedures and internal controls and update as necessary to ensure that expenditures are incurred within the allowable period of performance for respective awards. It should be noted that during the period of performance for which this audit was conducted there were a...

The Department will review its procedures and internal controls and update as necessary to ensure that expenditures are incurred within the allowable period of performance for respective awards. It should be noted that during the period of performance for which this audit was conducted there were a large number of personnel changes and shifts. The position that was responsible for the majority of these duties retired in January 2024. We proactively hired for her replacement a year before she retired. Over the course of the year our replacement took over more and more duties. In the process of this replacement, we have completed a tremendous amount of evaluation of our assigned duties, processes, workflow, training, and documentation. Not only in this role, but we are also undergoing a division and business unit wide analysis of our internal controls and workflow. It should also be noted that the UI admin funds are considered ‘formula funds’ from the US DOL. We are expected to run this program year-round with no gaps in service or performance. The funding that we receive from US DOL is based on an antiquated formula that breaks down the amount that is budgeted by Congress between 52 state and territories. We generally do not receive enough funding for the entire year. Also, with the recent trend of Congress to utilize the tool of the Continuing Resolution our funding is often ambiguous until most of the program year is over. We have at times seen our funding cut once a budget had been passed by Congress even though there was only about 3 months left in the program year. We are still expected to run this program and ‘find other sources of funding’. This does make the adherence to the period of performance challenging. However, as we evaluate our internal controls and procedures over the coming months, we will make note of every opportunity to strengthen this function to ensure that all charges applied to program funds are relevant, within the period of performance of the award, and are correctly reviewed and signed. Cameron Wood, UI Director, Cameron.Wood@vermont.gov Scheduled Completion Date of Corrective Action Plan: August 31, 2024

View Audit 297960

Finding 384854 (2023-007)

Significant Deficiency 2023

State of Vermont

VT

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

The Department will review its procedures and internal controls and update as necessary to ensure that expenditures are adequately reviewed and signed off on. It should be noted that during the period of performance for which this audit was conducted there were a large number of personnel changes a...

The Department will review its procedures and internal controls and update as necessary to ensure that expenditures are adequately reviewed and signed off on. It should be noted that during the period of performance for which this audit was conducted there were a large number of personnel changes and shifts. The position that was responsible for the majority of these duties retired in January 2024. We proactively hired for her replacement a year before she retired. Over the course of the year our replacement took over more and more duties. In the process of this replacement, we have completed a tremendous amount of evaluation of our assigned duties, processes, workflow, training, and documentation. Not only in this role, but we are also undergoing a division and business unit wide analysis of our internal controls and workflow. Cameron Wood, UI Director, Cameron.Wood@vermont.gov Scheduled Completion Date of Corrective Action Plan: August 31, 2024

View Audit 297960

Finding 384852 (2023-006)

Material Weakness 2023

State of Vermont

VT

Matching / Level of Effort / Earmarking Special Tests & Provisions Material Weakness § 200.303

In 2015, the Department lost access to certain federal IRS information, including the ability to store electronic federal tax information on the Department’s internal information technology servers. Subsequent to 2015, the Department has maintained a physical copy of the annual IRS 940 FUTA match f...

In 2015, the Department lost access to certain federal IRS information, including the ability to store electronic federal tax information on the Department’s internal information technology servers. Subsequent to 2015, the Department has maintained a physical copy of the annual IRS 940 FUTA match file for auditing purposes. This year, the Department did not maintain that file. The Department will review current procedures and internal controls with the Agency of Digital Services and update as necessary to ensure that a copy of the IRS 940 FUTA match file is maintained for auditing purposes. Cameron Wood, UI Director, Cameron.Wood@vermont.gov Scheduled Completion Date of Corrective Action Plan: August 31, 2024

View Audit 297960

Finding 384850 (2023-005)

Material Weakness 2023

State of Vermont

VT

Internal Control / Segregation of Duties Material Weakness Reporting § 200.303

The Department is currently undergoing a division and business unit wide analysis of our internal controls and procedures. As part of that effort, the Department will review internal controls and update as necessary to ensure that all required reports are filed timely and accurately and that report...

The Department is currently undergoing a division and business unit wide analysis of our internal controls and procedures. As part of that effort, the Department will review internal controls and update as necessary to ensure that all required reports are filed timely and accurately and that reports are reviewed and approved by authorized State officials prior to submission. Cameron Wood, UI Director, Cameron.Wood@vermont.gov Scheduled Completion Date of Corrective Action Plan: August 31, 2024

View Audit 297960

Finding 384843 (2023-004)

Significant Deficiency 2023

State of Vermont

VT

Questioned Costs Cash Management § 200.303 § 200.514

In March 2023, AOE implemented a new process that is more automated to ensure accuracy and timeliness of our CMIA draws. We have created a new draw sheet that will be more easily loaded and will be reconciled a couple times a year. The Deputy CFO or person assigned by the Deputy CFO will perform a...

In March 2023, AOE implemented a new process that is more automated to ensure accuracy and timeliness of our CMIA draws. We have created a new draw sheet that will be more easily loaded and will be reconciled a couple times a year. The Deputy CFO or person assigned by the Deputy CFO will perform a reconciliation at least two times a year. Name: Sean Cousino Position: Deputy CFO Email: sean.couisno@vermont.gov Phone Number: 802 595-3693 Date of Implementation of Corrective Action: March 15, 2023

View Audit 297960 Questioned Costs: $1

Finding 384836 (2023-003)

Significant Deficiency 2023

State of Vermont

VT

Subrecipient Monitoring Reporting School Nutrition Programs § 200.303

To address the accuracy and timeliness of our entries into the FFATA system, we will use the USASPENDING.GOV website to assist us in reconciling what has been entered into the FFATA system. This will allow us to ensure that our grant ledgers agree with what is entered into FFATA. In March 2023 we s...

To address the accuracy and timeliness of our entries into the FFATA system, we will use the USASPENDING.GOV website to assist us in reconciling what has been entered into the FFATA system. This will allow us to ensure that our grant ledgers agree with what is entered into FFATA. In March 2023 we started reconciliations and plan to continue reconciling a couple times each year. The work will be done by the Deputy CFO or position assigned by the Deputy CFO. We will also implement a process that will have all the steps necessary for a grant award or an amendment to ensure it is posted properly within our internal files and the external systems. This will ensure that new awards and amendments get routed and entered in the FFATA system timely. We will look into the Batch upload process to allow for data to be entered into the system easier. Name: Sean Cousino Position: Deputy CFO Email: sean.couisno@vermont.gov Phone Number: 802 595-3693 Date of Implementation of Corrective Action: 5/01/2024

View Audit 297960

Corrective Action Plans

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