Corrective Action Plans

Finding 24569 (2022-023)

Significant Deficiency 2022

State of Michigan

MI

Questioned Costs Reporting

Finding 2022-023 Medicaid Cluster, ALN 93.775, 93.777, and 93.778 and Children's Health Insurance Program, ALN 93.767 - Refunding of Federal Share of Overpayments Management Views MDHHS agrees with the finding. Planned Corrective Action For parts a., b., d., and e., CHAMPS enhancements were imp...

Finding 2022-023 Medicaid Cluster, ALN 93.775, 93.777, and 93.778 and Children's Health Insurance Program, ALN 93.767 - Refunding of Federal Share of Overpayments Management Views MDHHS agrees with the finding. Planned Corrective Action For parts a., b., d., and e., CHAMPS enhancements were implemented into production during fiscal year 2023 to correct the reporting of quarterly expenditures. MDHHS is currently finalizing updates to rules within CHAMPS. MDHHS is currently working with the Adult Services Authorized Payments (ASAP) system vendor to correct the reports used for the preparation of the quarterly statement of expenditures report (CMS-64) report. For part c., MDHHS will explore system enhancements to identify overpayments returned late and to calculate the corresponding interest due to the Centers for Medicare and Medicaid Services. Anticipated Completion Date a., b., d., and e. MDHHS expects CHAMPS updates to be finalized by June 30, 2023, and ASAP reports to be corrected by July 31, 2023. c. MDHHS does not yet have an estimated completion date for the system enhancements related to the calculation of interest. Responsible Individual(s) Gina Fleury, MDHHS Carol O?Callaghan, MDHHS Darryl Walker, MDHHS

View Audit 20093 Questioned Costs: $1

Finding 24568 (2022-022)

Significant Deficiency 2022

State of Michigan

MI

Eligibility HUD Housing Programs Reporting

Finding 2022-022 Medicaid Cluster, ALN 93.775, 93.777, and 93.778 and Children's Health Insurance Program, ALN 93.767 - Provider Eligibility Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS will amend the managed care contracts to require that signatures are obtained...

Finding 2022-022 Medicaid Cluster, ALN 93.775, 93.777, and 93.778 and Children's Health Insurance Program, ALN 93.767 - Provider Eligibility Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS will amend the managed care contracts to require that signatures are obtained on the Provider Screening Information Collection Tool (PSICT) forms when contracts and waivers are renewed and extended. Annually, MDHHS will send a reminder to the managed care entities to report any change in ownership to MDHHS within 35 days. In addition, MDHHS has incorporated a review of provider agreements as part of their monitoring process conducted for all MI Choice Waiver Program (MI Choice) entities. Anticipated Completion Date MDHHS will send the annual reminder to managed care entities beginning August 2023. MDHHS anticipates that signatures will be obtained on the PSICTs effective October 2023 for the fiscal year 2024 contract cycle. MDHHS expects to complete its current review of provider agreements for MI Choice entities by July 2023 and reviews will be ongoing. Responsible Individual(s) Elizabeth Gallagher, MDHHS Latina McCausey, MDHHS

View Audit 20093

Finding 24567 (2022-021)

Significant Deficiency 2022

State of Michigan

MI

Eligibility Internal Control / Segregation of Duties

Finding 2022-021 Medicaid Cluster, ALN 93.775, 93.777, and 93.778 and Children's Health Insurance Program, ALN 93.767 - Eligibility Interface Errors Management Views MDHHS agrees with the finding. Planned Corrective Action Bridges is the system of record for eligibility and produces reports with p...

Finding 2022-021 Medicaid Cluster, ALN 93.775, 93.777, and 93.778 and Children's Health Insurance Program, ALN 93.767 - Eligibility Interface Errors Management Views MDHHS agrees with the finding. Planned Corrective Action Bridges is the system of record for eligibility and produces reports with potential duplicate records for local office staff to review. In addition, CHAMPS is currently designed to reject potential duplicate records to prevent duplicate payments for the same individuals that already exist in CHAMPS and places these records on a CHAMPS report for review. These two reports could potentially contain the same duplicate records identified by both CHAMPS and Bridges. MDHHS central office will develop a process to reconcile the rejected records identified on the CHAMPS and Bridges reports and ensure that MDHHS is appropriately reviewing those records and making any necessary corrections. Anticipated Completion Date December 2023 Responsible Individual(s) Jamy Hengesbach, MDHHS Mariah Schaefer, MDHHS

View Audit 20093

Finding 24565 (2022-019)

Material Weakness 2022

State of Michigan

MI

Questioned Costs Eligibility Material Weakness § 200.516

Finding 2022-019 Medicaid Cluster, ALN 93.775, 93.777, and 93.778 and Children's Health Insurance Program, ALN 93.767 - Beneficiary Eligibility Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS continues to pursue other data sources for income verification and other s...

Finding 2022-019 Medicaid Cluster, ALN 93.775, 93.777, and 93.778 and Children's Health Insurance Program, ALN 93.767 - Beneficiary Eligibility Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS continues to pursue other data sources for income verification and other system enhancements so that all case data is available to all reviewers. MDHHS conducts mandated training for local office caseworkers. In addition, MDHHS will continue to determine where additional training or enhancements to training are needed to ensure eligibility is accurately determined and documentation is properly maintained and loaded to the electronic case file. Lastly, MDHHS has been working since 2018 to ensure correct eligibility classifications in Bridges at the time of payment and a system change was implemented in April 2021 to correct the issue. All new cases are being correctly routed. MDHHS expects that all existing cases will be updated during the 14-month period following the May 11, 2023 end of the PHE, as allowed by the Centers for Medicare and Medicaid Services. Anticipated Completion Date MDHHS continues to pursue other data sources for income verification and other system enhancements, in addition to determining where training is needed, on an ongoing basis. MDHHS expects to have all existing cases updated by June 2024. Responsible Individual(s) Logan Dreasky, MDHHS Brant Cole, MDHHS Mariah Schaefer, MDHHS

View Audit 20093 Questioned Costs: $1

Finding 24564 (2022-017)

Material Weakness 2022

State of Michigan

MI

Reporting Subrecipient Monitoring Material Weakness

Finding 2022-017 MDHHS - FFATA Reporting Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS has submitted all outstanding FFATA reports. MDHHS provided additional instruction to the individuals responsible for providing account code and funding source information relat...

Finding 2022-017 MDHHS - FFATA Reporting Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS has submitted all outstanding FFATA reports. MDHHS provided additional instruction to the individuals responsible for providing account code and funding source information related to FFATA submissions. Anticipated Completion Date Completed Responsible Individual(s) Jeanette Hensler, MDHHS Chad Dzingleski, MDHHS

View Audit 20093

Finding 24562 (2022-009)

Significant Deficiency 2022

State of Michigan

MI

Eligibility Internal Control / Segregation of Duties

Finding 2022-009 CHAMPS General Controls Management Views Although MDHHS and DTMB had not fully documented all database specific configuration standards until after the audit period, DTMB disagrees that during the audit period the system contained potentially vulnerable database configurations a...

Finding 2022-009 CHAMPS General Controls Management Views Although MDHHS and DTMB had not fully documented all database specific configuration standards until after the audit period, DTMB disagrees that during the audit period the system contained potentially vulnerable database configurations and disagrees that DTMB cannot ensure the security of the data. DTMB has been and continues to implement the manufacturer?s recommendations regarding security configurations. In addition, the databases reside in restricted trusted internal security zones, protected by firewalls, which are specific to each application and database, in conjunction with intrusion protection, antivirus software, and SOM standard security safeguards. Planned Corrective Action DTMB developed an organization-wide framework for database security configuration management. Anticipated Completion Date DTMB anticipates having compliance documentation by September 30, 2023. Responsible Individual(s) Nathan Buckwalter, DTMB

View Audit 20093

Finding 24542 (2022-005)

None 2022

Hillside Board of Education

NJ

Improve the facilities of the cafeteria

View Audit 21250

Finding 24541 (2022-002)

Significant Deficiency 2022

Okeechobee County, Fl

FL

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties § 200.303

COVID-19 Coronavirus State and Local Fiscal Recovery Funds ? Assistance Listing No. 20.027 Recommendation: We recommend all reports submitted to grantors be reviewed by knowledgeable personnel before submittal. A copy of the review, approval, approval date, and submittal date should be maintained as...

COVID-19 Coronavirus State and Local Fiscal Recovery Funds ? Assistance Listing No. 20.027 Recommendation: We recommend all reports submitted to grantors be reviewed by knowledgeable personnel before submittal. A copy of the review, approval, approval date, and submittal date should be maintained as evidence. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: Staff will ensure that all reports submitted to grantors be reviewed by knowledgeable personnel before submitting. A copy of the review, approval, approval date, and submittal date will be maintained as evidence. Name(s) of the contact person(s) responsible for corrective action: Budget and Grants Director Johnathan Blanco. Planned completion date for corrective action plan: September 30, 2023.

View Audit 21248

Finding 24539 (2022-003)

Significant Deficiency 2022

Okeechobee County, Fl

FL

Subrecipient Monitoring Cash Management Significant Deficiency § 200.303

Airport Improvement Program ? Assistance Listing No. 20.106 Recommendation: We recommend all reports submitted to grantors be reviewed by knowledgeable personnel before submittal. A copy of the review, approval, approval date, and submittal date should be maintained as evidence. Explanation of disag...

Airport Improvement Program ? Assistance Listing No. 20.106 Recommendation: We recommend all reports submitted to grantors be reviewed by knowledgeable personnel before submittal. A copy of the review, approval, approval date, and submittal date should be maintained as evidence. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: Staff will ensure that all reports submitted to grantors be reviewed by knowledgeable personnel before submitting. A copy of the review, approval, approval date, and submittal date will be maintained as evidence. Name(s) of the contact person(s) responsible for corrective action: Budget and Grants Director Johnathan Blanco. Planned completion date for corrective action plan: September 30, 2023.

View Audit 21248

Finding 24510 (2022-046)

Significant Deficiency 2022

State of Michigan

MI

Questioned Costs Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles § 200.516

Finding 2022-046 CCDF Cluster, ALN 93.575 and 93.596 - Provider Health and Safety Requirements Management Views MDE and the Department of Licensing and Regulatory Affairs (LARA) agree with the finding. Planned Corrective Action For part a., the Child Care Licensing Bureau (CCLB) within LARA has ...

Finding 2022-046 CCDF Cluster, ALN 93.575 and 93.596 - Provider Health and Safety Requirements Management Views MDE and the Department of Licensing and Regulatory Affairs (LARA) agree with the finding. Planned Corrective Action For part a., the Child Care Licensing Bureau (CCLB) within LARA has updated its internal policies to clarify how it manages workflow operations, while ensuring CCLB meets federal compliance requirements. In June 2022, the Child Care Organizations Act was amended and the language in Michigan Compiled Law 722.113h was changed to allow for inspections to be conducted in accordance with the State plan. The State plan specifies the annual licensing inspection requirement, at 45 CFR 98.42(b)(2)(i)(B) for unannounced inspections, must be performed ?not less than annually.? According to guidance from the Federal Office of Child Care Region V, this does not mean that inspections must be performed at exact 12-month intervals; therefore, the lead agency has flexibility to schedule the inspections within each calendar year. CCLB has subsequently completed the annually required renewal and/or interim inspections for the licenses identified in the audit sample. The applicable health and safety requirements were reviewed during the inspections conducted. For part b., CCLB is currently creating a new licensing system that will automate letters being sent to licensed child care providers. The new system will generate and store inspection reports directly in the system instead of creating the report in a separate location and then manually moving it to other locations (network drive, SharePoint). This allows the inspection reports to be maintained digitally and be accessible at a later date, while ensuring proper documentation to support renewal inspections is maintained. For part c., in June 2022, CCLB implemented a new process to save all extension letters mailed in PDF format and stored in the current system to be accessed and available upon request. In addition, CCLB will incorporate refresher trainings regarding documentation and storage of inspection reports at its biannual all-staff trainings. The current process of documentation creation and storage will be phased out after the new licensing system is implemented and processes are no longer manually done by CCLB staff. Anticipated Completion Date a. Completed b. October 1, 2023 c. October 1, 2023 Responsible Individual(s) Emily Laidlaw, LARA Lisa Brewer-Walraven, MDE

View Audit 20093 Questioned Costs: $1

Finding 24509 (2022-045)

Significant Deficiency 2022

State of Michigan

MI

Allowable Costs / Cost Principles Eligibility

Finding 2022-045 CCDF Cluster, ALN 93.575 and 93.596 - Child Care Stabilization Grants Management Views MDE agrees with the finding. MDE?s written procedures for the fall 2021 grant round required manual verification of the number of subsidy eligible children, increasing the risk for human error in...

Finding 2022-045 CCDF Cluster, ALN 93.575 and 93.596 - Child Care Stabilization Grants Management Views MDE agrees with the finding. MDE?s written procedures for the fall 2021 grant round required manual verification of the number of subsidy eligible children, increasing the risk for human error in documenting the appropriate number of subsidy eligible children on the provider?s application. The exceptions noted by the auditors were found in the fall 2021 grant round before procedures were modified in the spring of 2022. Planned Corrective Action MDE revised procedures in March 2022 for the spring 2022 grant round to prepopulate applications based on the number of subsidy eligible children directly from Bridges for specified pay periods, also allowing the providers to dispute the number of subsidy eligible children included in the prepopulated application. Anticipated Completion Date Completed Responsible Individual(s) Lisa Brewer-Walraven, MDE

View Audit 20093

Finding 24508 (2022-044)

Material Weakness 2022

State of Michigan

MI

Questioned Costs Matching / Level of Effort / Earmarking § 200.516

Finding 2022-044 CCDF Cluster, ALN 93.575 and 93.596 - Client Eligibility Management Views MDHHS and MDE agree with the finding. Planned Corrective Action MDHHS Public Assistance Operations (PAO), within the ESA, will continue assisting the local office and BSC staff by providing guidance on MDE ...

Finding 2022-044 CCDF Cluster, ALN 93.575 and 93.596 - Client Eligibility Management Views MDHHS and MDE agree with the finding. Planned Corrective Action MDHHS Public Assistance Operations (PAO), within the ESA, will continue assisting the local office and BSC staff by providing guidance on MDE policies and processes. ESA will inform the local office and BSC staff of policy changes or noted trends during PAO?s Bridges Bits and Bytes communications sessions. ESA?s Payment Accuracy Unit completed case reads in December 2022 and, as a result, ESA and MDE finalized a checklist on May 9, 2023, for use by local office staff to help ensure required documentation that supports eligibility is obtained. Also, MDE launched a Child Development and Care case review SharePoint site on May 1, 2023, to share information with MDE and MDHHS staff, reduce errors and promote integrity efforts for the program. Anticipated Completion Date MDHHS assistance and guidance for local office and BSC staff is ongoing. Responsible Individual(s) Mariah Schaefer, MDHHS Gayle Vail, MDHHS Lisa Brewer-Walraven, MDE

View Audit 20093 Questioned Costs: $1

Finding 24488 (2022-043)

Significant Deficiency 2022

State of Michigan

MI

Matching / Level of Effort / Earmarking Subrecipient Monitoring Allowable Costs / Cost Principles

Finding 2022-043 Aging Cluster, ALN 93.044, 93.045, and 93.053 - AIS FIRST User Access Management Views Although MDHHS thoroughly reviewed the access forms, MDHHS agrees that the final approval was not documented. Planned Corrective Action MDHHS has instructed staff that all forms must either cont...

Finding 2022-043 Aging Cluster, ALN 93.044, 93.045, and 93.053 - AIS FIRST User Access Management Views Although MDHHS thoroughly reviewed the access forms, MDHHS agrees that the final approval was not documented. Planned Corrective Action MDHHS has instructed staff that all forms must either contain a handwritten or electronic signature. MDHHS will also develop and implement an internal process for staff to ensure all future security forms contain the required approvals. Anticipated Completion Date July 1, 2023 Responsible Individual(s) Jen Hunt, MDHHS Cindy Masterson, MDHHS

View Audit 20093

Finding 24470 (2022-001)

Significant Deficiency 2022

Someplace Safe

MN

Internal Control / Segregation of Duties

FINDINGS ? FINANCIAL STATEMENTS AUDIT Significant Deficiency Item 2021-001. Inadequate Segregation of Duties Recommendation ? Although it may not be economically feasible for the Organization to attain an ideal segregation of duties environment, the Organization can periodically observe and evalu...

FINDINGS ? FINANCIAL STATEMENTS AUDIT Significant Deficiency Item 2021-001. Inadequate Segregation of Duties Recommendation ? Although it may not be economically feasible for the Organization to attain an ideal segregation of duties environment, the Organization can periodically observe and evaluate its current structure so as to make improvements when considered necessary. Action Planned ? The Organization has determined the benefit of adequately segregating duties is less than the cost. Based on the assessment, the Organization is accepting the risk posed by the deficiency while also evaluating mitigating controls that will help reduce the risk of material misstatement of the financial statements. Management attempts to mitigate the associated risks by doing the following: 1. Identifies areas where the lack of segregation of duties exists and where there are higher risks of errors or fraud occurring. 2. Implements limited segregation to the extent possible to reduce risks without impairing efficiency. 3. Uses the knowledge that management and the Board of Directors have of operations by having them review certain accounting records and reports. 4. Monitors the effectiveness of the above actions and makes changes as considered appropriate.

View Audit 22557

Finding 24467 (2022-001)

Significant Deficiency 2022

University of the Pacific

CA

Student Financial Aid Matching / Level of Effort / Earmarking Reporting

Finding #2022-001: Pacific understands finding #2022-001 and we agree that the University will modify internal controls to ensure accurate and timely reporting of student status changes to the National Student Loan Data System (NSLDS). The University has adjusted the completion/graduation process an...

Finding #2022-001: Pacific understands finding #2022-001 and we agree that the University will modify internal controls to ensure accurate and timely reporting of student status changes to the National Student Loan Data System (NSLDS). The University has adjusted the completion/graduation process and procedure to capture students (within the 60 days required to transmit status change to NSLDS) whose degree have been awarded. The university will correct error reports within the 10-day period to ensure the student status is updated within the 60-day requirement to transmit status change to NSLDS. Finding #2022-001 Action: The Office of the Registrar concurs with the audit test work of enrollment reporting which noted while there is a process in place to correctly submit information to NSLDS, during the audit test work the engagement team noted that three student's information was inaccurately reported to NSLDS. The University's control failed in detecting that inaccurate information was reported to NSLDS. It was discovered in December 2022 that the Registrar staff did not review the error report from the clearinghouse to ensure students? final status to NSLDS during the required reporting period. Per the 2022 Enrollment Reporting Guide, ?After the institution submits the Enrollment Reporting roster to NSLDS, NSLDS evaluates the enrollment Reporting roster and provides the institution an Error/Acknowledgement file. If errors are identified, institutions have 10 days to correct the errors and resubmit to NSLDS.? While the University acknowledges the critical nature of taking corrective action on this finding, it also notes incorrect reporting of ?G ? for ?W? statuses results in no harm to individual students in their loan repayment start dates nor financial loss to the U.S. Department of Education?s federal loan program. The University agrees with this statement and, as of July 2022, has adjusted the completion/graduation process and procedure to capture students (within the 60 days required to transmit status change to NSLDS) who have been awarded their degree but files appear in the clearinghouse error report. The University will correct error report and resubmit within 10-days and ensure in NSLDS that the update is complete. Person(s) responsible: Karen Johnson University Registrar

View Audit 22556

Finding 24466 (2022-001)

Significant Deficiency 2022

Pennsylvania Child Care Association

PA

Allowable Costs / Cost Principles § 200.430

View of responsible officials and planned corrective action The Association will conduct reconciliation of payroll allocation twice each year at the end of the second quarter and at the end of the third quarter to actual time recorded to ensure salary expense allocated to the federal awards is supp...

View of responsible officials and planned corrective action The Association will conduct reconciliation of payroll allocation twice each year at the end of the second quarter and at the end of the third quarter to actual time recorded to ensure salary expense allocated to the federal awards is supported by actual time worked. A budget revision based on actuals will be implemented effective the fourth quarter.

View Audit 20353

Finding 24453 (2022-042)

Material Weakness 2022

State of Michigan

MI

Subrecipient Monitoring § 200.303 § 200.332

Finding 2022-042 Education Stabilization Fund, ALN 84.425 - During-the-Award Monitoring Procedures Management Views For part a., MDE partially agrees with the finding. MDE acknowledges that it did not complete any reviews of the FERs submitted during fiscal year 2022. However, the Uniform Guidanc...

Finding 2022-042 Education Stabilization Fund, ALN 84.425 - During-the-Award Monitoring Procedures Management Views For part a., MDE partially agrees with the finding. MDE acknowledges that it did not complete any reviews of the FERs submitted during fiscal year 2022. However, the Uniform Guidance does not specify a timeframe for the review of FERs for the Education Stabilization Funds (ESF) and the ESF program is inherently more flexible than other federal programs in this regard. Although GANs originally required ESF subrecipients to submit a FER by August 29, 2022, MDE communicated to ESF subrecipients after the initial GANs that the August 29, 2022 due date was subject to change due to the continuously changing rules and requirements around this funding, including extension possibilities such as late liquidation. ESF FERs were due either within 60 days of full draw of the funds or within 60 days of the end of the award period, which could have been during the State?s fiscal year 2022 or well after September 30, 2022. For this reason, under Uniform Guidance, MDE had the authority to delay the review of FERs until closer to the end date of the award. In the case of late liquidation, the U.S. Department of Education provided notification that extended the award period as far as 14 months beyond the original end date of the award. For part b., MDE partially agrees with the finding. MDE acknowledges that subrecipient desk reviews were not finalized; however, the majority of the subrecipient monitoring was complete. The Uniform Guidance does not specify a timeframe for ESF subrecipient monitoring to occur and no requirement or expectation was made that monitoring would be finalized by MDE management by September 30, 2022. While the MDE contractor was not tracking completion against the date of September 30, 2022, documentation was and is still available, upon request from the OAG, to demonstrate the substantial ongoing monitoring activities, such as desk reviews and review of amendments, as of the end of the State?s fiscal year 2022. The Compliance Team was in regular contact with MDE throughout the monitoring process. The Compliance Team provided regular updates leading up to September 30, 2022 and shared comprehensive preliminary results with the department soon after September 30, 2022. Planned Corrective Action For part a., MDE will evaluate the process for reviewing FERs to determine the appropriate timeframe for FER review of these ESF funds in light of federal liquidation extensions. MDE and subrecipients were notified of a one-time, Coronavirus Aid, Relief, and Economic Security Act reopening drawdown opportunity during the spring of 2023, which again reopened the possibility for subrecipients to submit FERs. MDE will begin interim reviews of a sample of submitted FERs by September 30, 2023. For part b., MDE?s contractor provided MDE with the final results of its school year 2021 monitoring that was finalized during the summer of 2022 on January 5, 2023. MDE and its contractor have since followed up with subrecipients to recommend necessary or reasonable corrective action in March 2023. School year 2022 monitoring is ongoing and anticipated to be completed by September 30, 2023. Anticipated Completion Date September 30, 2023 Responsible Individual(s) Spencer Simmons, MDE

View Audit 20093

Finding 24452 (2022-018)

Material Weakness 2022

State of Michigan

MI

Subrecipient Monitoring § 200.332

Finding 2022-018 MDE - Subaward Information Management Views MDE agrees with the finding. For part a., MEGS+ automatically generates Grant Award Notifications (GAN) upon approval of the application. At the time the applications were originally approved, a complete GAN would have been available fo...

Finding 2022-018 MDE - Subaward Information Management Views MDE agrees with the finding. For part a., MEGS+ automatically generates Grant Award Notifications (GAN) upon approval of the application. At the time the applications were originally approved, a complete GAN would have been available for the subrecipient that included all subaward information as required by the Uniform Guidance. However, an error occurred when MDE updated the letterhead template in the MEGS+ system, disrupting the appropriate generation of the GANs for those applications that included multiple funding sources. For part b., prior to fiscal year 2022, the Great Start Readiness Program (GSRP) appropriation was composed of State funding only. Program office oversight of the GSRP grant includes a complex grant application reliant on multiple data points connected to budget submissions. As such, the grant management system could not be restructured to accommodate federal funding for GSRP including systematic issuance of GANs within a reasonable timeframe for fiscal year 2022. This necessitated GANs be created and issued via a manual process. The MDE program office was unable to determine the federal award identification number (FAIN) or closeout terms and conditions prior to issuance. Planned Corrective Action For part a., MDE corrected the error that caused GANs to generate without all required subaward information in MEGS+ on April 28, 2023. All GANs are available in MEGS+ and can be generated when requested in the system. For part b., MDE fully corrected this issue for fiscal year 2023. MDE now has the appropriate details and beginning in fiscal year 2023, GANs are issued systemically with all required FAIN or closeout terms and conditions via the new grant management system. All federal funding GANs for fiscal year 2023 were issued upon approval of grantee budgets beginning January 30, 2023, with the final approval and GAN issued May 18, 2023. Anticipated Completion Date Completed Responsible Individual(s) Spencer Simmons, MDE Richard Lower, MDE

View Audit 20093

Finding 24447 (2022-016)

Significant Deficiency 2022

State of Michigan

MI

Subrecipient Monitoring Reporting

Finding 2022-016 MDE - FFATA Reporting Management Views MDE agrees with the finding. Planned Corrective Action With current capacity, MDE is unable to devote additional resources to submitting a new report each month. MDE is coordinating with the program offices to improve the Federal Funding Ac...

Finding 2022-016 MDE - FFATA Reporting Management Views MDE agrees with the finding. Planned Corrective Action With current capacity, MDE is unable to devote additional resources to submitting a new report each month. MDE is coordinating with the program offices to improve the Federal Funding Accountability and Transparency Act (FFATA) reporting process in order to submit subaward information in accordance with FFATA and federal guidance either by the program office staff or by securing additional resources. Anticipated Completion Date The enhanced process is anticipated to begin with October 1, 2024 grants. Responsible Individual(s) Spencer Simmons, MDE

View Audit 20093

Finding 24432 (2022-041)

Significant Deficiency 2022

State of Michigan

MI

Questioned Costs Allowable Costs / Cost Principles Eligibility § 200.516

Finding 2022-041 Homeowner Assistance Fund, ALN 21.026 - Eligibility Determinations Management Views MSHDA agrees with the finding. Planned Corrective Action For parts a. and b., MSHDA will implement further training of both Case Managers and Case Manager Assistants to address the cited items. Thi...

Finding 2022-041 Homeowner Assistance Fund, ALN 21.026 - Eligibility Determinations Management Views MSHDA agrees with the finding. Planned Corrective Action For parts a. and b., MSHDA will implement further training of both Case Managers and Case Manager Assistants to address the cited items. This will include additional training on documentation of the homeowner?s hardship and detailing calculations in the case notes. For part c., MSHDA will provide additional training to staff making sure that all fields on the checklist are answered correctly. The checklist now has a system failsafe that all fields must have an answer prior to allowing the file to be conditionally approved in the online application portal. Anticipated Completion Date Completed Responsible Individual(s) Dawn Hengesbach, MSHDA Glenn Ross, MSHDA Raul Escobedo, MSHDA Krysta Smith, MSHDA

View Audit 20093 Questioned Costs: $1

Finding 24429 (2022-012)

Significant Deficiency 2022

State of Michigan

MI

Internal Control / Segregation of Duties § 200.303

Finding 2022-012 MATT 2.0 Change Management Process Management Views MSHDA agrees with the finding. Corrective Action MSHDA completed the improvement of the existing change management process for the MSHDA Activity Tracking Tool (MATT) 2.0 in November of 2021, which includes requiring electronical...

Finding 2022-012 MATT 2.0 Change Management Process Management Views MSHDA agrees with the finding. Corrective Action MSHDA completed the improvement of the existing change management process for the MSHDA Activity Tracking Tool (MATT) 2.0 in November of 2021, which includes requiring electronically documented approval before any production changes can be made. The remaining record that did not have documented support was a training issue that has already been addressed. Anticipated Completion Date Completed Responsible Individual(s) Mark Whitaker, MSHDA SaVille Hill, MSHDA

View Audit 20093

Finding 24428 (2022-011)

Significant Deficiency 2022

State of Michigan

MI

Subrecipient Monitoring Internal Control / Segregation of Duties § 200.303

Finding 2022-011 MATT 2.0 Security Management and Access Controls Management Views The Michigan State Housing Development Authority (MSHDA) agrees with the finding. Planned Corrective Action For parts, a., b., and c., as of November 30, 2022, MSHDA implemented system security processes and procedu...

Finding 2022-011 MATT 2.0 Security Management and Access Controls Management Views The Michigan State Housing Development Authority (MSHDA) agrees with the finding. Planned Corrective Action For parts, a., b., and c., as of November 30, 2022, MSHDA implemented system security processes and procedures to review active generic and test accounts and to review and disable user accounts inactive for 60 days. In addition, MSHDA implemented a monitoring process that includes semiannual review of privileged accounts and annual review of all other accounts. For part d., MSHDA provided additional training to the user who did not properly approve and document a system access form. Anticipated Completion Date Completed Responsible Individual(s) Mark Whitaker, MSHDA SaVille Hill, MSHDA

View Audit 20093

Finding 24423 (2022-040)

Significant Deficiency 2022

State of Michigan

MI

Subrecipient Monitoring § 200.332 § 200.501 § 200.521

Finding 2022-040 Formula Grants for Rural Areas and Tribal Transit Program, ALN 20.509 - Subrecipient Audits Management Views MDOT agrees with the finding. Planned Corrective Action MDOT will update and implement its procedures to include management decision letter timelines that are consistent w...

Finding 2022-040 Formula Grants for Rural Areas and Tribal Transit Program, ALN 20.509 - Subrecipient Audits Management Views MDOT agrees with the finding. Planned Corrective Action MDOT will update and implement its procedures to include management decision letter timelines that are consistent with the Uniform Guidance related to subrecipient report review. Anticipated Completion Date September 30, 2023 Responsible Individual(s) Adam Feldpausch, MDOT Dave Wearsch, MDOT

View Audit 20093

Finding 24422 (2022-039)

Significant Deficiency 2022

State of Michigan

MI

Subrecipient Monitoring Allowable Costs / Cost Principles Equipment & Real Property Management § 200.303

Finding 2022-039 Formula Grants for Rural Areas and Tribal Transit Program, ALN 20.509 - PTMS Security Management and Access Controls Management Views MDOT agrees with the finding. Planned Corrective Action MDOT?s Office of Enterprise Information Management (EIM) and Office of Passenger Transporta...

Finding 2022-039 Formula Grants for Rural Areas and Tribal Transit Program, ALN 20.509 - PTMS Security Management and Access Controls Management Views MDOT agrees with the finding. Planned Corrective Action MDOT?s Office of Enterprise Information Management (EIM) and Office of Passenger Transportation (OPT) will collaborate and provide oversight to ensure there is properly approved access for Public Transportation Management System (PTMS) users and that PTMS user access is reviewed semiannually for privileged accounts and/or annually for all other accounts. MDOT EIM and OPT will do this by reviewing security management and access control procedures and making any necessary updates, providing training on the process and documentation requirements, and designating a PTMS system security administrator(s) and back-up(s) as needed. Anticipated Completion Date August 1, 2023 Responsible Individual(s) Kyle Nelson, MDOT Andy Esch, MDOT OPT Business area system administrator(s)

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Finding 24413 (2022-065)

Significant Deficiency 2022

State of Michigan

MI

Reporting Allowable Costs / Cost Principles Significant Deficiency

Finding 2022-065 Unemployment Insurance, ALN 17.225 See Department of Labor and Economic Opportunity, Unemployment Insurance Agency, Unemployment Administration Fund, Report on Expenditure of Federal Awards, Year Ended September 30, 2022, Corrective Action Plan, Finding 2022-001.

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Corrective Action Plans

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