Corrective Action Plans

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Assistance listing number and program name: 93.778 Medical Assistance Program (Medicaid Title XIX) Agency: Arizona Health Care Cost Containment System (AHCCCS) Name of contact person and title: Jeff Tegen, Assistant Director, AHCCCS Division of Budget and Finance Anticipated completion date: Decembe...
Assistance listing number and program name: 93.778 Medical Assistance Program (Medicaid Title XIX) Agency: Arizona Health Care Cost Containment System (AHCCCS) Name of contact person and title: Jeff Tegen, Assistant Director, AHCCCS Division of Budget and Finance Anticipated completion date: December 31, 2024 Agency’s Response: Concur In response to this item, AHCCCS has made holistic, system-wide improvements to the Medicaid payment system, including: 1. Required behavioral health providers to submit additional assessment, treatment plan, and medical records documentation with their claims, 2. Required Fee-For-Service providers billing more than 2 units of hourly codes or 4 units of 15-minutes codes on a single date of service, to provide additional documentation, 3. Added new reporting to flag concerning claims for review before payment, including, but not limited to, claims for services that could not be rendered as billed, claims for substance use treatment for minors age 12 and under, claims for services by different providers that should not be provided on the same day, and overlapping services of the same style, 4. Set billing thresholds and imposed prepayment review for various scenarios including multiple providers billing the same client on the same day for similar services, excessive number of hours per day, and the age of patients, 5. All codes intended for per diem services have been limited in the system and providers must bill each day separately rather than in date ranges, so per diem codes cannot be billed more than once a day on any given date of service, 6. Researched and confirmed that the National Correct Coding Initiative (NCCI) Medicaid coding methodologies, which allow for states to reduce improper payments, are in place and functioning correctly, 7. Set a specific rate for billing code H0015 for drug and alcohol treatment services, a change from the previous rate that paid a percentage of the billed amount, 8. Hired a forensic auditor to review all claims since 2019, 9. Implemented emergency rules to enhance and expand AHCCCS authority to exclude providers affiliated with bad actors, 10. Elevated three behavioral health provider types to the high-risk category for all new registrants, requiring fingerprints, on-site visits, background checks, and additional disclosures, 11. Implemented federal authority to impose a moratorium on new provider registrations for all Behavioral Health Outpatient Clinics, Integrated Clinics, Non-Emergency Transportation providers, Behavioral Health Residential Facilities, and Community Service Agencies, 12. Ended approval of retroactive provider registrations without good cause documentation, 13. Eliminated the ability for providers to bill on behalf of others, 14. Eliminated the ability for a member to switch enrollment from a managed care health plan to the American Indian Health Program (AIHP) over the phone, 15. Added a data request process for law enforcement agencies to assist with missing persons cases, and 16. Revised the Provider Participation Agreement (PPA) to explicitly require that if a provider stops providing services to AHCCCS members during an ongoing investigation, they must help the member transition to a new provider for care. Similarly, they are required to provide to AHCCCS a member census and, upon request, any other information needed to assist in care coordination. If they do not comply, AHCCCS has the right to file an injunction to require the provider to comply with the PPA. AHCCCS plans to implement additional measures to further strengthen the agency’s ability to detect and prevent potentially fraudulent activity. A partial list includes: • Requiring visual attestation of individual billers, • Requiring third-party billers to disclose terms of compensation, and • Determine methodology for AIHP enrollment criteria.
Assistance listing number and program name: 84.425 COVID-19 Education Stabilization Fund-Higher Education Emergency Relief Fund (HEERF) Institutional Portion Agency: Northern Arizona University (NAA) Name of contact person and title: Bradley Miner, Interim Vice President and Comptroller Anticipated ...
Assistance listing number and program name: 84.425 COVID-19 Education Stabilization Fund-Higher Education Emergency Relief Fund (HEERF) Institutional Portion Agency: Northern Arizona University (NAA) Name of contact person and title: Bradley Miner, Interim Vice President and Comptroller Anticipated completion date: August 18, 2023 Agency’s Response: Concur See University response section at the end of this report for the corrective action response for finding 2022-125.
View Audit 7884 Questioned Costs: $1
Finding 5930 (2022-126)
Significant Deficiency 2022
Assistance listing number and program name: 84.425E COVID-19 Education Stabilization Fund—Higher Education Emergency Relief Fund (HEERF)—Student Portion Student Financial Assistance Cluster 84.007 Federal Supplemental Educational Opportunity Grants 84.033 Federal Work-Study 84.038 Federal Perkins L...
Assistance listing number and program name: 84.425E COVID-19 Education Stabilization Fund—Higher Education Emergency Relief Fund (HEERF)—Student Portion Student Financial Assistance Cluster 84.007 Federal Supplemental Educational Opportunity Grants 84.033 Federal Work-Study 84.038 Federal Perkins Loan Program—Federal Capital Contributions 84.063 Federal Pell Grant Programs 84.268 Federal Direct Student Loans 84.379 Teacher Education Assistance for College and Higher Education Grants (TEACH Grants) 93.364 Nursing Student Loans 93.925 Scholarships for Health Professions Students from Disadvantaged Backgrounds—Scholarships for Disadvantaged Students (SDS) Agency: Northern Arizona University (NAA) Name of contact person and title: Bradley Miner, Interim Associate Vice President and Comptroller Anticipated completion date: November 30, 2023 Agency’s Response: Concur See University response section at the end of this report for the corrective action response for finding 2022-126.
View Audit 7884 Questioned Costs: $1
Assistance listing number and program name: 84.425C COVID-19 Education Stabilization Fund – Governor’s Emergency Education Relief (GEER) Fund Agency: Arizona Governor’s Office of Strategic Planning and Budgeting (Office) Name of contact person and title: Sarah Brown, Director Governor’s Office of S...
Assistance listing number and program name: 84.425C COVID-19 Education Stabilization Fund – Governor’s Emergency Education Relief (GEER) Fund Agency: Arizona Governor’s Office of Strategic Planning and Budgeting (Office) Name of contact person and title: Sarah Brown, Director Governor’s Office of Strategic Planning & Budgeting Completion date: July 31, 2023 Agency’s Response: Concur All recommendations have been implemented. During fiscal year 2023, the Office took significant corrective action and completed Federal Funding Accountability and Transparency Act (FFATA) reporting on a monthly basis, as required. Additionally, the Office has worked closely with its U.S. Department of Education program officer to correct inaccurate information previously reported in the FFATA reporting system. Finally, although the Office did not report awards in the FFATA reporting system in a timely manner during fiscal year 2022, it did comply with all U.S. Department of Education GEER annual reporting requirements. The information reported, including awardees, award amounts, and spending to date, is available to the public through the U.S. Department of Education’s federal pandemic relief funding transparency portal (https://covid-relief-data.ed.gov/). The Office has also conducted a staffing assessment and is adding resources to perform reporting activities.
Assistance listing number and program name: 84.425C COVID-19 Education Stabilization Fund – Governor’s Emergency Education Relief (GEER) Fund Agency: Arizona Governor’s Office of Strategic Planning and Budgeting (Office) Name of contact person and title: Sarah Brown, Director Governor’s Office of ...
Assistance listing number and program name: 84.425C COVID-19 Education Stabilization Fund – Governor’s Emergency Education Relief (GEER) Fund Agency: Arizona Governor’s Office of Strategic Planning and Budgeting (Office) Name of contact person and title: Sarah Brown, Director Governor’s Office of Strategic Planning & Budgeting Completion date: July 31, 2024 Agency’s Response: Concur During fiscal year 2023, the Office took significant corrective action to improve subrecipient monitoring, including assessing each subrecipient’s risk of noncompliance, collecting single audits (as applicable) or certified financial statements from new awardees, and requesting and reviewing additional information from grantees related to uses of awarded funds. Moving forward, the Office proposes the following: 1. The Office will annually require grantees to complete a questionnaire to attest whether the entity will be required to obtain a single audit. The Office will collect single audits (as applicable) or certified financial statements in order to review and follow-up on corrective action items related to the grants administered. The Office will conduct grantee training regarding subrecipient monitoring and the requirements for grantees accepting Federal grant awards. 2. The Office staff have attended various training opportunities to improve their understanding of and tools available to them to perform subrecipient monitoring procedures, as required. The Office has also conducted a staffing assessment and has added staff to perform subrecipient monitoring activities.
Assistance listing number and program name: N/A Agency: Department of Education Name of contact person and title: Mark Belanger, Budget Director Anticipated completion date: October 31, 2023 Agency’s Response: Concur The Department agrees with this finding and will implement the following: • Trai...
Assistance listing number and program name: N/A Agency: Department of Education Name of contact person and title: Mark Belanger, Budget Director Anticipated completion date: October 31, 2023 Agency’s Response: Concur The Department agrees with this finding and will implement the following: • Train designated staff responsible for preparing the Schedule of Expenditures of Federal Awards (SEFA) on State of Arizona Accounting Manual (SAAM) requirements. • Establish a reconciliation process to validate expenditures prior to submitting report • Staff will review federal resources for Assistance Listing Numbers (formerly CFDAs) to ensure proper title reporting • Designated staff will stay current on all federal regulations and SAAM requirements for reporting
Assistance listing number and program name: 84.010 Title I Grants to Local Educational Agencies 84.425D Education Stabilization Fund – Elementary and Secondary School Emergency Relief (ESSER) Fund 84.425U Education Stabilization Funds – American Rescue Plan Act – ESSER FUND (ARP ESSER) Agency: Depar...
Assistance listing number and program name: 84.010 Title I Grants to Local Educational Agencies 84.425D Education Stabilization Fund – Elementary and Secondary School Emergency Relief (ESSER) Fund 84.425U Education Stabilization Funds – American Rescue Plan Act – ESSER FUND (ARP ESSER) Agency: Department of Education Name of contact person and title: Deidre Mai, Deputy Associate Superintendent of Grants Management Krystal Chacon, Compliance Coordinator of Grants Management Anticipated completion date: January 30, 2024 Agency’s Response: Concur The Department agrees with findings and will implement the following: • Immediately report on the Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting System the required information for subawards for all federal programs, including the following: o 84.010 Title I Grants to Local Educational Agencies o 84.425D Education Stabilization Fund—Elementary and Secondary School Emergency Relief (ESSER) Fund o 84.425U Education Stabilization Funds – American Rescue Plan Act—ESSER Fund (ARP ESSER). • Develop procedures that follow the State’s accounting manual for reporting subaward actions exceeding $30,000 no later than month-end of the month following the subaward action, as required by the FFATA and federal Uniform Guidance, and implement procedures requiring independent reviews to: o Ensure the subaward data is complete and accurate prior to uploading it to the federal government’s reporting system by crosschecking the agency’s Grants Management Enterprise (GME) System FFATA report against the GME Grant Summary report. o Verify that the subaward data uploaded to the federal government’s reporting system was complete and correctly displayed by crosschecking USASpending.gov data against the GME FFATA and Grant Summary reports. • Identify validation inaccuracies in FFATA data report from state’s GME system. o Develop a new FFATA report with system vendor. o Review and confirm the FFATA data parameters are correct. • Assign new staff to FFATA reporting and train all staff on new procedures. • Add FFATA reporting to Grants Management continuous improvement process goals. • Produce a monthly status report to be shared and reviewed by the Deputy Associate Superintendent of Grants Management.
Assistance listing number and program name: 21.027 COVID-19 State and Local Fiscal Recovery Funds Name of contact person and title: Kori Kappes, Finance Administrator Anticipated completion date: June 30, 2024 Agency’s Response: Concur The Department will ensure subaward entities provide all record...
Assistance listing number and program name: 21.027 COVID-19 State and Local Fiscal Recovery Funds Name of contact person and title: Kori Kappes, Finance Administrator Anticipated completion date: June 30, 2024 Agency’s Response: Concur The Department will ensure subaward entities provide all records to the division relating to federal awards. The Department will also ensure it retains all records for a period of 3 years from the final expenditure report submission date. The Department will continue to resolve the $10,000 of questionable costs as deemed appropriate by the State of Arizona Office of the Governor and the United States Department of Treasury.
View Audit 7884 Questioned Costs: $1
Assistance listing number and program name: 21.027 Coronavirus State and Local Fiscal Recovery Funds Agency: Arizona Governor’s Office of Strategic Planning and Budgeting (Office) Name of contact person and title: Sarah Brown, Director Governor’s Office of Strategic Planning & Budgeting Completio...
Assistance listing number and program name: 21.027 Coronavirus State and Local Fiscal Recovery Funds Agency: Arizona Governor’s Office of Strategic Planning and Budgeting (Office) Name of contact person and title: Sarah Brown, Director Governor’s Office of Strategic Planning & Budgeting Completion date: October 2023 Agency’s Response: Concur The Office recognizes the importance of transparency in the utilization of Federal grants and has taken significant corrective action to resolve any inaccuracies in Federal grant reporting. The Office has implemented the following to ensure reporting inaccuracies and program expenditure understatements do not occur: 1. The Office has conducted a comprehensive review and has thoroughly examined the current reporting procedures and identified the gaps that led to the reporting inaccuracies and understatement of program expenditures. This has helped us understand the root causes and implement appropriate corrective measures. 2. The Office has enhanced reporting mechanisms: Based on the comprehensive review noted in response one, the Office is working to develop improved reporting procedures to ensure accurate submission of grant expenditure data. This may include revised standardized templates, improved guidelines, and enhanced communication channels both for Office staff and externally with grant recipients. 3. The Office will strengthen internal controls: The Office has implemented a monthly reconciliation process to review grantee expenditures and fiscal activity to ensure accurate reporting. The Office will continue to improve internal controls to prevent similar issues from occurring in the future. This will involve strengthening oversight, providing additional training to staff members involved in reporting processes, and implementing regular quality assurance checks, along with improved grant recipient monitoring.
Assistance listing number and program name: 21.027 Coronavirus State and Local Fiscal Recovery Funds Agency: Arizona Governor’s Office of Strategic Planning and Budgeting (Office) Arizona Office of Tourism Arizona Supreme Court Name of contact person and title: Sarah Brown, Director Governor’s O...
Assistance listing number and program name: 21.027 Coronavirus State and Local Fiscal Recovery Funds Agency: Arizona Governor’s Office of Strategic Planning and Budgeting (Office) Arizona Office of Tourism Arizona Supreme Court Name of contact person and title: Sarah Brown, Director Governor’s Office of Strategic Planning & Budgeting Lena Allen, Director of Outdoor Recreation & Sustainability Alyce Agostino, Financial Analyst, Grant Compliance Agency’s Response: Concur Anticipated Completion date: see below Office Completion date: July 31, 2024 During fiscal year 2023, the Office took significant corrective action to improve subrecipient monitoring, including assessing each subrecipient’s risk of noncompliance, collecting single audits (as applicable) or certified financial statements from new awardees, and requesting and reviewing additional information from grantees related to uses of awarded funds: 1. The Office will annually require grantees to complete a questionnaire to attest whether the entity will be required to obtain a single audit. The Office will collect single audits (as applicable) or certified financial statements in order to review and follow-up on corrective action items related to the grants administered. The Office will conduct grantee training regarding subrecipient monitoring and the requirements for grantees accepting Federal grant awards. 2. The Office staff have attended various training opportunities to improve their understanding of and tools available to them to perform subrecipient monitoring procedures, as required. The Office has also conducted a staffing assessment and has added staff to perform subrecipient monitoring activities. Arizona Office of Tourism Anticipated Completion date: January 31, 2024 • Risk Assessment aspect of finding: The Arizona Office of Tourism (AOT) is now aware and will comply with these requirements. In order to comply, AOT will update processes and procedures to include risk assessments of subrecipients. This process will include both an outline for analysis along with the proper documentation and all necessary actions. • Subrecipient Single Audit aspect of finding: Per 2 CFR 200.332(f) AOT had a process in place for any subrecipient that was awarded through the Visit Arizona Initiative Grant Program over $750,000. As outlined by the audit, 2 CFR 200.332(f) applies for any organization that receives over $750,000 in federal funds even outside of the VAI grant program. To align with this requirement, AOT will create a process for identifying, requesting and reviewing Single Audits. Arizona Supreme Court – Administration Office of the Courts Anticipated Completion date: February 28, 2024 The Judicial Branch, Arizona Supreme Court, has drafted a Risk-Assessment Questionnaire for all Grants in which the Supreme Court is a pass-through grantee, to collect all essential information that is needed to reasonably assess the risk probability of possible subrecipients going forward in accordance with 2 CFR §200.332[b] and [d-e].
Assistance listing number and program name: 21.023 COVID-19 Emergency Rental Assistance Program Agency: Department of Economic Security Name of contact person and title: Molly Bright, DCAD Assistant Director Anticipated completion date: December 31, 2023 Agency’s Response: Concur The Department of...
Assistance listing number and program name: 21.023 COVID-19 Emergency Rental Assistance Program Agency: Department of Economic Security Name of contact person and title: Molly Bright, DCAD Assistant Director Anticipated completion date: December 31, 2023 Agency’s Response: Concur The Department of Economic Security will address the audit recommendations as follows: 1. Develop and implement written policies and procedures to ensure the system used to process ERA claims and report program information produces summarized data on its federal reporting dashboard that are complete and accurate and comply with the federal agency’s reporting guidelines. The Department will develop written policies and procedures to ensure the information produced by the system used for processing ERA claims and program information is accurate and complete when providing this data to the federal reporting dashboard. These policies and procedures will bring the Department into compliance with the federal agency’s reporting guidelines. Department staff will be trained in accordance with the policies and procedures. 2. Follow its policies and procedures to retain all records relating to a federal award for a period of 3 years from the date of its submission of the final expenditure report. The Department will improve its compliance with its Record Retention policies and procedures, and will retain for 3 years all records that are required as outlined within the provisions of the federal awards received by the Department. 3. Verify the ERA-reported program information and the federal reporting dashboard to the underlying system data during each report’s review and approval process. The Department will, during each report’s review and approval process, sample the information from the underlying system prior to submitting it to the federal agency to verify its accuracy. This process will be included within the Department’s written policies and procedures created for ERA federal reporting. 4. Prepare and retain detailed documentation and submitted reports, such as system reports, queries, or screenshots, to support the program information it reports to the federal agency for each ERA award. The Department will assemble and retain all detailed documentation and submitted reports, such as but not limited to the aforementioned items, to provide support for the program information that the Department reports to the federal agency for each ERA award it receives. These documents and reports will be maintained in accordance with the Department’s Record Retention policies and procedures and federal requirements.
Assistance listing number and program name: 21.019 COVID-19 Coronavirus Relief Fund Agency: Arizona Governor’s Office of Strategic Planning and Budgeting (Office) Name of contact person and title: Sarah Brown, Director Governor’s Office of Strategic Planning & Budgeting Anticipated completion date...
Assistance listing number and program name: 21.019 COVID-19 Coronavirus Relief Fund Agency: Arizona Governor’s Office of Strategic Planning and Budgeting (Office) Name of contact person and title: Sarah Brown, Director Governor’s Office of Strategic Planning & Budgeting Anticipated completion date: January 31, 2023 Agency’s response: Concur Completed. As of January 12, 2023, the State of Arizona’s final closeout report to the U.S. Department of the Treasury on uses of Coronavirus Relief Funds (CRF) was submitted and accepted. As part of this final closeout report’s preparation, the Office completed a reconciliation of all activity reported against the information in the State’s accounting system and obtained clarification from State agencies awarded funds, as necessary, to help ensure the final report was complete and accurate.
Assistance listing number and program name: 21.019 COVID-19 Coronavirus Relief Fund Agency: Arizona Governor’s Office of Strategic Planning and Budgeting Name of contact person and title: Sarah Brown, Director Governor’s Office of Strategic Planning & Budgeting Anticipated completion date: July 3...
Assistance listing number and program name: 21.019 COVID-19 Coronavirus Relief Fund Agency: Arizona Governor’s Office of Strategic Planning and Budgeting Name of contact person and title: Sarah Brown, Director Governor’s Office of Strategic Planning & Budgeting Anticipated completion date: July 31, 2024 Agency’s response: Concur During fiscal year 2023, the Office took significant corrective action to improve subrecipient monitoring, including assessing each subrecipient’s risk of noncompliance, collecting single audits (as applicable) or certified financial statements from new awardees, and requesting and reviewing additional information from grantees related to uses of awarded funds. Additionally, Office staff have attended trainings to improve their understanding of and tools available to them to perform subrecipient monitoring procedures, as required. The Office has also conducted a staffing assessment and is adding resources to perform subrecipient monitoring.
Assistance listing number and program name: 17.225 COVID-19 Unemployment Insurance Agency: Department of Economic Security Name of contact person and title: Jean Ahumada, BAM Manager Anticipated completion date: June 30, 2024 Agency’s Response: Concur The Department of Economic Security will addr...
Assistance listing number and program name: 17.225 COVID-19 Unemployment Insurance Agency: Department of Economic Security Name of contact person and title: Jean Ahumada, BAM Manager Anticipated completion date: June 30, 2024 Agency’s Response: Concur The Department of Economic Security will address the audit recommendations as follows: The Department continues to work to recruit individuals with a strong knowledge and understanding of Unemployment Insurance (UI) laws, policy, procedures, and proper case management as new vacancies occur through attrition. The Department’s goal is to recruit and fill remaining staff vacancies prior to June 2024. The Department also continues to make efforts to improve staff retention. Note, the Department met the required minimum percentage of denied claims accuracy for 60-days and 90-days timeliness for both Separation and Nonseparation since batch ending August 31, 2022.
Assistance listing number and program name: 17.225 COVID-19 Unemployment Insurance Agency: Department of Economic Security Name of contact person and title: Sandra Canez, Unemployment Insurance Program Administrator Jacqueline Butera, Quality Assurance and Integrity Administrator Anticipated comple...
Assistance listing number and program name: 17.225 COVID-19 Unemployment Insurance Agency: Department of Economic Security Name of contact person and title: Sandra Canez, Unemployment Insurance Program Administrator Jacqueline Butera, Quality Assurance and Integrity Administrator Anticipated completion date: July 16, 2023 Agency’s Response: Concur The Department of Economic Security took the following actions to remediate finding 2022-110 and prior year finding 2021-108. In July 2023, the Department completed the wage evaluation of the claimants determined eligible to receive above the $117-minimum weekly UI benefit amount, as noted in the finding. Any resulting overpayment for the federal CARES Act programs was established by the Department, and where appropriate, waivers were considered and allowed following federal regulations and the state overpayment policy. As noted in the finding, the Department addressed the 7 sampled cases and will continue to follow well-established overpayment and recovery policy and procedures.
Finding 5795 (2022-123)
Significant Deficiency 2022
Assistance listing number and program name: 16.575 Crime Victim Assistance Agency: Department of Public Safety Name of contact person and title: Kate McClary, Administrative Service Manager Anticipated completion date: June 30, 2024 Agency’s Response: Concur Despite the Department having made subaw...
Assistance listing number and program name: 16.575 Crime Victim Assistance Agency: Department of Public Safety Name of contact person and title: Kate McClary, Administrative Service Manager Anticipated completion date: June 30, 2024 Agency’s Response: Concur Despite the Department having made subawards that would have achieved the earmarks in priority spending, the actual expenditures fell short of these targets. In order to increase the likelihood of the priority spending earmarks being met in the future, the Department agrees with this finding and will implement the following: • Additional monitoring of subrecipient program spending at additional points in time throughout the award period to maximize the likelihood of achieving the required 10 percent of its total award on each of the priority crime victim categories: sexual assault, child abuse and spousal abuse. • Enhanced policies and procedures to identify points in time for consideration of the most appropriate action to be taken once it is learned that spending on the priority crime victim categories will not be met. • Adjustments to spending or subrecipient funding, as appropriate, to assist in safeguarding it meets the earmarking requirement if overall spending on any of the three priority crime victim categories is lower than the required 10 percent. • Seek additional subrecipients for it and other State agencies to partner with to serve the priority categories of crime victims, and if additional subrecipients cannot be found, work with the federal agency to request a waiver for or a reduction to the earmarking requirements.
View Audit 7884 Questioned Costs: $1
Finding 5791 (2022-115)
Significant Deficiency 2022
Assistance listing number and program name: 14.231 Emergency Solutions Grant Program 14.231 COVID-19- Emergency Solutions Grant Program 14.267 Continuum of Care Program Agency: Department of Housing Name of contact person and title: Keon Montgomery, Assistant Deputy Director of Programs Molly Brig...
Assistance listing number and program name: 14.231 Emergency Solutions Grant Program 14.231 COVID-19- Emergency Solutions Grant Program 14.267 Continuum of Care Program Agency: Department of Housing Name of contact person and title: Keon Montgomery, Assistant Deputy Director of Programs Molly Bright, DCAD Assistant Director (DES) Anticipated completion date: April 30, 2024 Agency’s Response: Concur Department of Housing response: The Department is no longer reimbursing the subrecipient for unsupported or ineligible costs and is working to resolve the issue. The HUD Field Office is aware of the findings and the Department is working toward resolution. Written policies for reviewing and approving subrecipient reimbursements, as well as, risk assessment will be reviewed and updated. Contract specialists in the Special Needs Division have begun training and the Department will continue to leverage Federal educational resources centered on Grants and Agreements, 2 CFR 200 cost principles and award requirements. Department of Economic Security response: Agency: Department of Economic Security Name of contact person and title: Molly Bright, DCAD Assistant Director Anticipated completion date: June 30, 2024 Agency’s Response: Concur The Department will stop the reimbursement of costs to all nonprofit and contracted subrecipients for all items that are disallowed and/or restricted by the regulations provided for within the provisions of the federal Emergency Solutions Grant Program (ESG), including payments that violate the conflict-of-interest disclosure requirements. Additionally, the Department will revise its cost monitoring policy to ensure compliance with these regulations prior to disbursing any ESG funding to any subrecipient for any purpose. The Department will also update its policies and procedures for subrecipient monitoring. The Department will assess the risk of noncompliance violations for each subrecipient and establish a plan of action to address noncompliance. The plan of action will include an array of training and educational processes to ensure applicable personnel are knowledgeable of ESG compliance requirements and Department contracts. The Department will also monitor subrecipients per updated policies and procedures. The Department will continue to resolve the unallowable costs reimbursed to subrecipients as deemed appropriate by the United States Department of Housing and Urban Development.
View Audit 7884 Questioned Costs: $1
Finding 5789 (2022-116)
Significant Deficiency 2022
Assistance listing number and program name: 14.228 Community Development Block Grants/State’s Program and Non-Entitlement Grants in Hawaii Agency: Department of Housing Name of contact person and title: Keon Montgomery, Assistant Deputy Director of Programs Anticipated completion date: December 31,...
Assistance listing number and program name: 14.228 Community Development Block Grants/State’s Program and Non-Entitlement Grants in Hawaii Agency: Department of Housing Name of contact person and title: Keon Montgomery, Assistant Deputy Director of Programs Anticipated completion date: December 31, 2023 Agency’s Response: Concur The Arizona Department of Housing will take the following actions to correct Federal Funding Accountability and Transparency Act (FFATA) reporting errors and eliminate future reporting errors: The Department will leverage Federal training and educational resources by requiring all Grant Administration and Data staff to participate in the HUD FFATA Subaward Reporting System webinars. It will also create and implement processes designed to ensure there is increased oversight and reporting of any modifications to subawards in the Federal Funding Accountability and Transparency Subaward Reporting System (FSRS), by no later than month end following the subaward action. Furthermore, the Department of Housing will implement procedures for review of FFATA prior to its submission in FSRS.
Assistance listing number and program name: 12.401 National Guard Military Operations and Maintenance (O&M) Projects Agency: Department of Emergency and Military Affairs (DEMA) Name of contact person and title: Jensen Forde, CFO Anticipated completion date: April 30, 2024 Agency’s Response: Concur ...
Assistance listing number and program name: 12.401 National Guard Military Operations and Maintenance (O&M) Projects Agency: Department of Emergency and Military Affairs (DEMA) Name of contact person and title: Jensen Forde, CFO Anticipated completion date: April 30, 2024 Agency’s Response: Concur DEMA HR anticipates having this completed by April 2024 at the latest. All employee records will be audited, corrected and maintained per the finding. HR staff has received a copy of the Department’s Record Retention Schedule and effective immediately will adhere to the policy.
View Audit 7884 Questioned Costs: $1
Finding 2022-001 Significant Deficiency in Internal Control over Compliance, Noncompliance-Reporting Type of Finding: Significant Deficiency/Noncompliance Name of Contact: George Flynn Corrective Action Plan: Stebbins Community Association will strive to ensure that the future audits will be com...
Finding 2022-001 Significant Deficiency in Internal Control over Compliance, Noncompliance-Reporting Type of Finding: Significant Deficiency/Noncompliance Name of Contact: George Flynn Corrective Action Plan: Stebbins Community Association will strive to ensure that the future audits will be completed in time to file the form SD-SCA within the required nine months. We will schedule future audits to work with an accounting firm to occur within 100 days after fiscal year. Proposed Completion Date: December 4, 2023.
Finding 5717 (2022-001)
Significant Deficiency 2022
Action Taken: We concur with the recommendation, and it was implemented effective November 27, 2023.
Action Taken: We concur with the recommendation, and it was implemented effective November 27, 2023.
Department of Housing and Urban Development The Potter County Housing Authority respectively submits the following corrective action plan for the fiscal year ended June 30, 2022. Audit Period: July 1, 2021 – June 30, 2022 The finding from the schedule of findings and questions costs is discussed...
Department of Housing and Urban Development The Potter County Housing Authority respectively submits the following corrective action plan for the fiscal year ended June 30, 2022. Audit Period: July 1, 2021 – June 30, 2022 The finding from the schedule of findings and questions costs is discussed below. The finding is numbered consistently with the numbers assigned in the schedule. Finding 2022-1 – Interfund Receivables and Payables Financial Statement Audit Recommendation The Authority should address the repayment of the interfund receivables and payables. The balances of the receivables and payables should be review by management on an annual basis to determine if repayment is expected in a reasonable time period. If repayment is not expected, the interfund balances should be reduced and the amount that is not expected to be repaid should be reported as a transfer from the fund that made the loan to the fund that received the loan. Response The Authority agrees with the Auditor that interfund balances should be reviewed on an annual basis. The Authority will continue to bring old interfund balances in front of our Board to approve write-off and donation transactions. Several interfund balances have been previously authorized and will remain on the financial accounts; The Authority should see a significant reduction in the need for interfund transfers in the future for project development.
Action Taken: Director of Federal Programs, CEO and Director of Operations and Finance have all been made aware of this finding and will oversee the process to ensure the books are closed timely.
Action Taken: Director of Federal Programs, CEO and Director of Operations and Finance have all been made aware of this finding and will oversee the process to ensure the books are closed timely.
The County Council and County Executive will work through the Audit Committee and Policy Review Committee to review, update, and strengthen policies and internal controls related to County and Federal procurement policies. The County will provide sufficient training and resources for staff to make s...
The County Council and County Executive will work through the Audit Committee and Policy Review Committee to review, update, and strengthen policies and internal controls related to County and Federal procurement policies. The County will provide sufficient training and resources for staff to make sure all County and Federal procurement policies are followed correctly. The County will also monitor these processes through internal audit procedures
Synopsis of Finding: Northwest Indiana Community Action Corporation (NWICA), experienced a delay in issuing the December 31, 2022, audited financial statements which were due September 30, 2023. The financial reporting and general ledger close-out process was not sufficient to provide accurate and t...
Synopsis of Finding: Northwest Indiana Community Action Corporation (NWICA), experienced a delay in issuing the December 31, 2022, audited financial statements which were due September 30, 2023. The financial reporting and general ledger close-out process was not sufficient to provide accurate and timely financial statements for timely filing of the audit in accordance with regulatory requirements. Management’s Response: Northwest Indiana Community Action Corporation (NWICA) concurs with the 2022-001: Fiscal Internal Controls finding. NWICA has taken the steps to address this finding by hiring new leadership within the Finance department and is evaluating internal processes to ensure timely completion of future audits. This will include starting the audit earlier in the year and periodic touch points with the auditors to ensure the established timeline for completion is achieved. Contact Person Responsible for Corrective Action: Jonathan Edwards Anticipated Completion Date: September 30, 2024
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