Corrective Action Plans

Finding 569780 (2024-083)

Significant Deficiency 2024

State of Alaska

AK

Period of Performance Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

Finding: 2024-083 - One of 40 sampled transactions were coded incorrectly to the wrong grant. Questioned Costs: None Assistance Listing Number: 47.076 Assistance Listing Title: RDC Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, br...

Finding: 2024-083 - One of 40 sampled transactions were coded incorrectly to the wrong grant. Questioned Costs: None Assistance Listing Number: 47.076 Assistance Listing Title: RDC Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): There is no disagreement with the audit finding. Corrective Action (corrective action planned): The expenditure with issue was charged to a ‘Closed’ grant and UAF Office of Grants & Contracts Administration (OGCA) was not aware of this until it showed up on the aged receivable report so it was not corrected in time before year-end. OGCA will develop a plan to detect and correct these inappropriate expenditures charged on closed grants timely. Completion Date (list anticipated completion date): June 2025 Agency Contact (name of person responsible for corrective action): Michelle Bunch, Office of Grants and Contracts Associate Director, 907-474-6173

View Audit 361087

Finding 569779 (2024-084)

Significant Deficiency 2024

State of Alaska

AK

Procurement, Suspension & Debarment § 200.303

Finding: 2024-084 - Two of the sampled 40 covered transactions did not have checks for suspension or debarment with the external parties prior to entering the contract. Questioned Costs: None Assistance Listing Number: 43.001, 93.859 Assistance Listing Title: RDC Views of Responsible Officia...

Finding: 2024-084 - Two of the sampled 40 covered transactions did not have checks for suspension or debarment with the external parties prior to entering the contract. Questioned Costs: None Assistance Listing Number: 43.001, 93.859 Assistance Listing Title: RDC Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): There is no disagreement with the audit finding. Corrective Action (corrective action planned): Procurement office has procedures in place and distributed to Procurement officers to make sure that checks for suspension and debarment are properly performed and documented. Additional internal reviews are conducted monthly on a random samples of files to ensure compliance. Additionally, Procurement is exploring an automated EPLS checks and possibility of adding vendor self-certification on suspension and debarment in the purchase order terms & conditions. Completion Date (list anticipated completion date): Completed. Investigating options for automation is underway with expected implementation within 2 years. Agency Contact (name of person responsible for corrective action): Kara Axx, Chief Procurement Officer, 907-474-6018. Michelle Bunch, Office of Grants and Contracts Associate Director, 907-474-6173

View Audit 361087

Finding 569775 (2024-032)

Material Weakness 2024

State of Alaska

AK

Subrecipient Monitoring § 200.303 § 200.332 § 200.339 § 200.505

Finding: 2024-032 - During FY 24, Department of Commerce, Community, and Economic Development (DCCED) staff did not sufficiently monitor the subrecipient tasked with administering the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Tourism and Other Businesses program. Furthermore, DCCED m...

Finding: 2024-032 - During FY 24, Department of Commerce, Community, and Economic Development (DCCED) staff did not sufficiently monitor the subrecipient tasked with administering the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Tourism and Other Businesses program. Furthermore, DCCED management did not take action with respect to the subrecipient’s noncompliance with requirements to obtain a single audit. Questioned Costs: None Assistance Listing Number: 21.027 Assistance Listing Title: SLFRF - COVID- 19 Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): DCCED agrees with this finding. Corrective Action (corrective action planned): Division of Finance presented subrecipient monitoring training to DCCED grant management staff in December 2024. DCCED will continue to work with department grant staff to ensure compliance with federal subrecipient monitoring requirements by strengthening grant management procedures. DCCED is working with the subrecipient to obtain single audits for outstanding periods. DCCED and the Division of Finance worked collaboratively to address previously unidentified communication gaps when subrecipients are notified of outstanding single audit requirements, and have made adjustments to communication procedures to ensure departments are notified of outstanding single audits for grantees. Completion Date (list anticipated completion date): 12/31/2025 Agency Contact (name of person responsible for corrective action): Lisa Van Bargen

View Audit 361087

Finding 569774 (2024-003)

Significant Deficiency 2024

State of Alaska

AK

Internal Control / Segregation of Duties Reporting Significant Deficiency § 200.303

Finding: 2024-003 — Office of Management and Budget staff submitted the quarter ended December 31, 2023, FY 24 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program project and expenditure report to US Treasury with material errors. Questioned Costs: None Assistance Listing Number: 21....

Finding: 2024-003 — Office of Management and Budget staff submitted the quarter ended December 31, 2023, FY 24 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program project and expenditure report to US Treasury with material errors. Questioned Costs: None Assistance Listing Number: 21.027 Assistance Listing Title: SLFRF COVID- 19 Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The Office of the Governor, Office of Management and Budget (OMB), agrees with this finding. Corrective Action (corrective action planned): A standard operating procedure policy for completing the quarterly Project and Expenditure Report was drafted and finalized in coordination with the Division of Finance. This policy has been utilized since completion and will be followed for all future SLFRF reporting periods. The U.S. Treasury was contacted for guidance on how to correct prior-quarter obligation and expenditure data. Completion Date (list anticipated completion date): February 25, 2025 Agency Contact (name of person responsible for corrective action): Lacey Sanders, Director

View Audit 361087

Finding 569771 (2024-044)

Material Weakness 2024

State of Alaska

AK

Questioned Costs Equipment & Real Property Management § 200.303 § 200.311 § 200.313

Finding: 2024-044 - Auditors could not obtain sufficient and appropriate evidence to verify compliance with FWC’s equipment and real property management requirements. Questioned Costs: Indeterminate Assistance Listing Number: 15.605, 15.611 Assistance Listing Title: FWC Views of Responsible Offi...

Finding: 2024-044 - Auditors could not obtain sufficient and appropriate evidence to verify compliance with FWC’s equipment and real property management requirements. Questioned Costs: Indeterminate Assistance Listing Number: 15.605, 15.611 Assistance Listing Title: FWC Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): ADFG agrees that the policy and procedure for management of equipment, real property, and capital improvements are insufficient. Corrective Action (corrective action planned): ADFG will establish procedures and training to ensure that all equipment, real property, and capital improvements are managed in strict compliance with federal requirements. For equipment management, ADFG will take the following actions: 1. Ensure capital and sensitive equipment is accounted for in IRIS through a fixed asset transaction (FN, FA, FM, FT. or FD). Centralized data in IRIS will streamline inventory management and compliance. The IRIS fixed asset intent (FN) transaction, implemented July 1, 2024, ensures all equipment is tied to the purchasing document for better tracking of funding source information. 2. Develop and implement standardized procedures for inventory management in IRIS in coordination with the Office of Procurement and Property Management, Department of Administration. This creates consistent and accurate inventory management practices across the department. 3. Create and distribute inventory logs for staff to use in remote locations to address challenges in retrieving inventory items during seasonal months.. This will result in enhanced field equipment tracking and timely identification of equipment needs or disposal. 4. Develop comprehensive training for staff involved in equipment management to ensure staff are well-trained and knowledgeable about inventory management procedures and compliance requirements. 5. Establish clear guidelines for the timely disposal of broken, failed, or obsolete equipment and ensure efficient and compliant disposal of unnecessary equipment. This will result in reduced storage and maintenance costs. For real property and capital improvement projects, ADFG will take the following actions: 1. Collaborate with Alaska Department of Natural Resources and United States Fish and Wildlife Services on land certification in the federal application TRACS. Post-certification, ADFG will develop tracking logs to ensure annual site visits occur. 2. Develop department policies and procedures to ensure real property is managed according to federal requirements as authorized in grant awards. Provide training to program staff and administrative staff on the Code of Federal Regulations requirements and proper management of departmental record-keeping logs, including site visit dates and file location for site visit notations. Completion Date (list anticipated completion date): December 31, 2025 Agency Contact (name of person responsible for corrective action): Eric Verrelli, Procurement Specialist 5 Jessica Hood, Accountant 5

View Audit 361087 Questioned Costs: $1

Finding 569770 (2024-043)

Significant Deficiency 2024

State of Alaska

AK

Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.303 § 200.421

Finding: 2024-043 - Testing a random sample of 60 FY 24 non-personal service expenditures charged to the Fish and Wildlife Cluster (FWC) identified two expenditures that lacked proper approval, and one that charged unallowable costs to the FWC. Questioned Costs: ALN 15.611: $206 Assistance Listing...

Finding: 2024-043 - Testing a random sample of 60 FY 24 non-personal service expenditures charged to the Fish and Wildlife Cluster (FWC) identified two expenditures that lacked proper approval, and one that charged unallowable costs to the FWC. Questioned Costs: ALN 15.611: $206 Assistance Listing Number: 15.605, 15.611 Assistance Listing Title: FWC Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): Alaska Department of Fish & Game (ADFG) agrees with this finding. ADFG agrees that the control environment was weakened with the transition of non-personal service expenditure input and certification in the accounting system from ADFG staff to Shared Services of Alaska (SSoA) staff and that inadequate training is a contributing factor. Corrective Action (corrective action planned): ADFG will enhance the training and approval process for ADFG staff to ensure all expenditures are allowable, properly authorized, and compliant with regulatory requirements before being processed by SSoA staff. ADFG will update the approving officer policy to include the following requirements: Develop an onboarding training video for new approving officers, providing them with a comprehensive introduction to their responsibilities, ensuring they are well-prepared from the start. Implement annual approving officer training to keep approving officers updated on current policies and reinforce best practices. Establish an annual recertification process for approving officers to ensure ongoing proficiency and accountability, reinforcing the importance of compliance and proper authorization. ADFG will meet with SSoA to discuss and implement a process that ensures all missing authority signatures are captured and returned to the department for correction before processing occurs. ADFG will meet with SSoA to discuss this audit finding and request their staff receive further training equivalent to ADFG staff to prevent potential errors and findings in the future. Additionally, ADFG will request that SSoA provide training on invoice processing and backup requirements as a core service for the State of Alaska. Completion Date (list anticipated completion date): November 15, 2025 Agency Contact (name of person responsible for corrective action): Jessica Hood, Accountant 5

View Audit 361087

Finding 569769 (2024-035)

Significant Deficiency 2024

State of Alaska

AK

Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management § 200.303 § 200.308 § 200.344

Finding: 2024-035 -Six of seven award extensions for the NGMOMP program were untimely. Additionally, one award was not closed timely. Questioned Costs: None Assistance Listing Number: 12.401 Assistance Listing Title: NGMOMP Views of Responsible Officials (state whether your agency agrees or ...

Finding: 2024-035 -Six of seven award extensions for the NGMOMP program were untimely. Additionally, one award was not closed timely. Questioned Costs: None Assistance Listing Number: 12.401 Assistance Listing Title: NGMOMP Views of Responsible Officials (state whether your agency agrees or disagrees with the finding if you disagree, briefly explain why): DMVA concurs with the finding. Corrective Action (corrective action planned): Administrative Services has consistently provided notification and set clear deadlines to the Federal and State Program Managers of an expiring award under the Cooperative Agreement (CA). This notification has included a financial report detailing posted expenses and open obligations and when applicable, a copy of the most resent approved extension for reference. Due to inconsistent and untimely responses, the Finance officer in conjunction with the Administrative Services Director will update and strengthen written procedures, elevating responsibility for follow-up when responses are not received to ensure timely submission of extension requests and award closeouts following 2 CFR 200.303(a), 2 CFR 200.308(e), and 2 CFR 200.344. Updated documented procedures and training will be provided to the components under the CA. Completion Date (list anticipated completion date): 06/30/2025 Agency Contact (name of person responsible for corrective action): Bob Ernisse Pamela Wiederspohn

View Audit 361087

Finding 569768 (2024-034)

Significant Deficiency 2024

State of Alaska

AK

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

Finding: 2024-034 - The State’s accounting system was not updated for changes to the FFY 24 federally certified Facilities Inventory and Support Plan, which is used to allocate costs to the National Guard Military Operations and Maintenance Projects (NGMOMP program. Questioned Costs: AL 12.401: $88...

Finding: 2024-034 - The State’s accounting system was not updated for changes to the FFY 24 federally certified Facilities Inventory and Support Plan, which is used to allocate costs to the National Guard Military Operations and Maintenance Projects (NGMOMP program. Questioned Costs: AL 12.401: $88,984 Assistance Listing Number: 12.401 Assistance Listing Title: NGMOMP Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): DMVA concurs with the finding. Corrective Action (corrective action planned): Army Guard turnover stabilized in fiscal year 2024. The FISP is annually certified each spring for the following federal year. The Army Administrative Officer (AO) reviewed the certified 2024 Facilities Inventory and Support Plan (FISP) and requested updates to the State accounting system. Administrative Services Revenue office will make requested updates and provide a financial report to the AO for the purpose of identifying expenses posted to prior FISP percentages. The AO will submit correcting adjustments (CH8) to rectify any discrepancies. Future federal year structure will only be activated by the Revenue office once the AO has certified the review is complete and identifies needed changes. Completion Date (list anticipated completion date): 06/30/2025 Agency Contact (name of person responsible for corrective action): Pamela Wiederspohn Tanya Iskra

View Audit 361087 Questioned Costs: $1

Finding 569767 (2024-081)

Significant Deficiency 2024

State of Alaska

AK

Subrecipient Monitoring Cash Management Significant Deficiency § 200.305

Finding: 2024-081 - Fifteen of the sampled 40 subrecipient draws, on reimbursement basis, were paid to the subrecipients beyond 30 days of when the University received the payment request. Questioned Costs: None Assistance Listing Number: 81.049, 12.000, 43.001, 11.417 Assistance Listing Title...

Finding: 2024-081 - Fifteen of the sampled 40 subrecipient draws, on reimbursement basis, were paid to the subrecipients beyond 30 days of when the University received the payment request. Questioned Costs: None Assistance Listing Number: 81.049, 12.000, 43.001, 11.417 Assistance Listing Title: Research and Development Cluster (RDC) Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): There is no disagreement with the audit finding. Corrective Action (corrective action planned): The Associate Vice Chancellor (AVC) for Financial & Business is working with the Office of Finance & Accounting to establish a procedure for follow up on all invoices sent to the departments to ensure timely payment. Also the departments will develop a procedure to ensure that appropriate delegations are in place in case a PI is unavailable when an invoice is received. Completion Date (list anticipated completion date): June 2025 Agency Contact (name of person responsible for corrective action): Amanda Wall, AVC Financial Services 907-474-7552

View Audit 361087

Finding 569759 (2024-027)

Significant Deficiency 2024

State of Alaska

AK

Subrecipient Monitoring Reporting School Nutrition Programs § 200.303

Finding: 2024-027 - DEED did not comply with Federal Funding Accountability and Transparency Act reporting requirements applicable to Child Nutrition Cluster (CNC) FY 24 subawards. Questioned Costs: None Assistance Listing Number: 10.553, 10.555, 10.559, 10.582 Assistance Listing Title: CNC View...

Finding: 2024-027 - DEED did not comply with Federal Funding Accountability and Transparency Act reporting requirements applicable to Child Nutrition Cluster (CNC) FY 24 subawards. Questioned Costs: None Assistance Listing Number: 10.553, 10.555, 10.559, 10.582 Assistance Listing Title: CNC Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department partially agrees with Finding 2024-0027. While it is accurate that no FFATA reporting was accomplished for the Child Nutrition Cluster in FY2024, the department disagrees with the specific dollar amount. The methodology used for determining the dollar amount is overly simplistic and does not take each award into account, as specified in 2CFR17O.220. The methodology also excludes awards to other State agencies when 2CFR17O.300 specifically includes State entities. Corrective Action (corrective action planned): The department will continue to work to improve its ability to report timely by attempting to streamline manual determination of amounts to be reported. Completion Date (list anticipated completion date): Completion date is unknown. The department is still in the process of training the newest Finance Officer who has primary responsibility for the reporting. Due to the complexity of the reporting requirements and the limitations of the State’s financial systems it is a very manual process to determine accurate amounts to report. This manual process takes more time than knowledgeable staff have available due to other higher priority responsibilities. The system used to report also changed in Spring of 2025. Department procedures need to be overhauled again to take into account the move to SAM.gov. Agency Contact (name of person responsible for corrective action): Monigue Siverly, Division Operations Manager, Division of Administrative Services

View Audit 361087

Finding 569758 (2024-055)

Material Weakness 2024

State of Alaska

AK

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

Finding: 2024-055 - Daily SNAP EBT reconciliations were not performed in FY 24. Questioned Costs: None Assistance Listing Number: 10.551, 10.561 Assistance Listing Title: SNAP Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree,...

Finding: 2024-055 - Daily SNAP EBT reconciliations were not performed in FY 24. Questioned Costs: None Assistance Listing Number: 10.551, 10.561 Assistance Listing Title: SNAP Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department agrees with the finding. Corrective Action (corrective action planned): The Division of Public Assistance has increased administrative staff and will restore the daily reconciliation processes that were affected by staff turnover. Newer staff will be trained in the reconciliation and discrepancy processes, including review and follow-up of documentation. Completion Date (list anticipated completion date): The department anticipates the finding will be resolved in FY2025. Agency Contact (name of person responsible for corrective action): Pam Halloran, Assistant Commissioner

View Audit 361087

Finding 569757 (2024-054)

Material Weakness 2024

State of Alaska

AK

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

Finding: 2024-054 - Testing of 42 SNAP recipient cases to verify the completeness and accuracy of benefit calculations found 37 (88 percent) were incorrect or unsupported, including 24 (57 percent) in which the recipients’ application or reports of changes were not processed within federally require...

Finding: 2024-054 - Testing of 42 SNAP recipient cases to verify the completeness and accuracy of benefit calculations found 37 (88 percent) were incorrect or unsupported, including 24 (57 percent) in which the recipients’ application or reports of changes were not processed within federally required timeframes. Testing of 42 SNAP recipient cases to verify the adequacy of case information stored in EIS and DOH’s document management system, ILINX, found 18 (43 percent) had inadequate verifications of required information. Questioned Costs: AL 10.551: $59,073 Assistance Listing Number: 10.551, 10.561 Assistance Listing Title: SNAP Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department agrees with the finding. Corrective Action (corrective action planned): The Division of Public Assistance has reinstated SNAP interview requirements and verification procedures in FY2025. It will also review casework via supervisory case reviews to ensure accuracy and documentation standards are met. The division’s Learning & Development Team is creating training modules that will provide continuing education to existing staff. Completion Date (list anticipated completion date): The department anticipates the finding will be resolved in FY2026. Agency Contact (name of person responsible for corrective action): Pam Halloran, Assistant Commissioner

View Audit 361087

Finding 569756 (2024-053)

Material Weakness 2024

State of Alaska

AK

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

Finding: 2024-053 - The amount of FY 24 Supplemental Nutrition Assistance Program (SNAP) benefits reported to the United States Department of Agriculture (USDA) as issued by the State’s EBT contractor, FIS, was $2,628,951 more than the amount of authorized benefits reported in data from DPA’s Eligib...

Finding: 2024-053 - The amount of FY 24 Supplemental Nutrition Assistance Program (SNAP) benefits reported to the United States Department of Agriculture (USDA) as issued by the State’s EBT contractor, FIS, was $2,628,951 more than the amount of authorized benefits reported in data from DPA’s Eligibility Information System (EIS). Furthermore, FIS could not provide a reliable audit trail of issuances. Questioned Costs: AL 10.551: $2,628,951 Assistance Listing Number: 10.551, 10.561 Assistance Listing Title: SNAP Cluster Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department agrees with the finding, but not the questioned cost. The Division of Public Assistance performs monthly reconciliations and balancing efforts to ensure accuracy with routine FIS reports, EIS authorization and issuance reports, and federal reporting. However, the division agrees that a new ad hoc report created for this audit by the EBT contractor, FIS, does not match with issuances and reporting. Corrective Action (corrective action planned): The Division of Public Assistance will work with the EBT contractor, FIS, through the contract performance management process to address discrepancies found between a non standard ad hoc report and program issuances and reporting. The division will evaluate further ad hoc reports against previously established documents for accuracy. Completion Date (list anticipated completion date): The department anticipates the finding will be resolved in FY2026. Agency Contact (name of person responsible for corrective action): Pam Halloran, Assistant Commissioner

View Audit 361087

Finding 569755 (2024-052)

Material Weakness 2024

State of Alaska

AK

Questioned Costs School Nutrition Programs Eligibility § 200.303

Finding: 2024-052 - DOH’s Division of Public Assistance (DPA) did not determine or distribute benefits to school children or children in child care in accordance with the process and timeframes in the federally approved state plan. The audit identified the following deficiencies in FY 24: • The chi...

Finding: 2024-052 - DOH’s Division of Public Assistance (DPA) did not determine or distribute benefits to school children or children in child care in accordance with the process and timeframes in the federally approved state plan. The audit identified the following deficiencies in FY 24: • The children in child care beneficiaries were not identified as required by the school year 2020—2021 state plan. • The per child benefit amount paid to the 15,697 children in child care was understated by $6.21 and 125 children were included in both the student and the child care benefit eligibility lists. • Issuance records provided by DPA’s Electronic Benefits Transfer (EBT) contractor, Fidelity National Information Services (FIS), were $795,659 more than DPA reported issuances. Furthermore, the FIS report included $28,992 in duplicate summer 2021 benefit issuances to school children. • School year 2020—2021 student beneficiaries paid in FY 24 received benefits at least two years late and the children in child care beneficiaries were paid benefits at least 20 months late. Summer of 2021 beneficiaries paid in FY24 received benefits at least 20 months late. Questioned Costs: AL 10.542: Indeterminate Assistance Listing Number: 10.542 Assistance Listing Title: Pandemic Electronic Benefit Transfer Food Benefits (P-EBT) COVID-19 Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department partially agrees with the finding. The Division of Public Assistance disagrees with the finding regarding issuance timelines. The division communicated with FNS regarding manual benefit issuance for Alaska expressing timelines would be affected and FNS did not request an updated timeline. Communication with FNS regarding issuance remained consistent, with no indication to alter our issuance plan. Corrective Action (corrective action planned): Shall the department agree to administer this federal program in the future, the Commissioner will allocate the resources necessary to prevent the necessity to manually administer the federal program. Completion Date (list anticipated completion date): Not applicable. This federal program is complete. Agency Contact (name of person responsible for corrective action): Pam Halloran, Assistant Commissioner

View Audit 361087 Questioned Costs: $1

Finding 569754 (2024-026)

Significant Deficiency 2024

State of Alaska

AK

Questioned Costs Eligibility School Nutrition Programs § 200.303

Finding: 2024-026 — Department of Education and Early Development’s (DEED) child nutrition services management authorized Summer 2021 Pandemic Electronic Benefit Transfer Food Benefits (P-EBT) benefits for ineligible children. Questioned Costs: AL 10.542: $62,816 Assistance Listing Number: 10.542 ...

Finding: 2024-026 — Department of Education and Early Development’s (DEED) child nutrition services management authorized Summer 2021 Pandemic Electronic Benefit Transfer Food Benefits (P-EBT) benefits for ineligible children. Questioned Costs: AL 10.542: $62,816 Assistance Listing Number: 10.542 Assistance Listing Title: P-EBT COVID- 19 Views of Responsible Officials (state whether your agency agrees or disagrees with the finding; if you disagree, briefly explain why): The department agrees with Finding 2024-026. Corrective Action (corrective action planned): As the program is complete no corrective action can be taken for the Summer P-EBT program. If a new Summer EBT program is implemented, the department would work to implement a combination of standard operating procedures and automated electronic data validation processes to prevent erroneous benefit issuance. The department did not have sufficient time or resources to establish such features when implementing Pandemic EBT due to the urgent nature of the program. Completion Date (list anticipated completion date): n/a Agency Contact (name of person responsible for corrective action): Gavin Northey, Child Nutrition Programs Manager

View Audit 361087 Questioned Costs: $1

Finding 569732 (2024-002)

Significant Deficiency 2024

Limestone Valley Resource Conservation and Development Council, Inc.

GA

2023-02: Maintenance of the General Ledger Name of contact person: Stephen Bontekoe, Program Coordinator Corrective Action: The books and records of the Organization will continue to be kept on a cash basis throughout the year, with accruals for any receivables and payables, and any other accru...

2023-02: Maintenance of the General Ledger Name of contact person: Stephen Bontekoe, Program Coordinator Corrective Action: The books and records of the Organization will continue to be kept on a cash basis throughout the year, with accruals for any receivables and payables, and any other accruals be made at year end to ensure accurate reporting. Proposed completion date: The Board will implement the above procedure immediately.

View Audit 361079

Finding 569731 (2024-001)

Significant Deficiency 2024

Limestone Valley Resource Conservation and Development Council, Inc.

GA

Internal Control / Segregation of Duties Cash Management Reporting

2023-01: Segregation of Duties Name of contact person: Stephen Bontekoe, Program Coordinator Corrective Action: Duties and functions will be reviewed to determine where segregation needs to occur. The duties will be separated as much as possible and alternative controls will be implemented to ...

2023-01: Segregation of Duties Name of contact person: Stephen Bontekoe, Program Coordinator Corrective Action: Duties and functions will be reviewed to determine where segregation needs to occur. The duties will be separated as much as possible and alternative controls will be implemented to compensate for lack of segregation. However, the risk of not segregated certain duties are not worth the additional costs. Nonfinancial employees will be trained and provide some assistance. Proposed completion date: The Board will implement the above procedure immediately.

View Audit 361079

Finding 569729 (2024-001)

Material Weakness 2024

City of Osceola

NE

Internal Control / Segregation of Duties HUD Housing Programs

The City has discussed the finding but must consider the cost of adequate segregation of duties when determining the use of taxpayer resources.

View Audit 361067

Finding 569709 (2024-002)

Significant Deficiency 2024

Commonwealth of Puerto Rico Department of Natural and Environmental Resources

PR

SEE THE CORRECTIVE ACTION PLAN FOR CHART/TABLE

View Audit 361058

Finding 569708 (2024-006)

Significant Deficiency 2024

Children's Advocacy Center of Hidalgo County, Inc.

TX

Allowable Costs / Cost Principles Cash Management

Reference Number 2024-006 Prepaid Expenses and Requests for Reimbursement Recommendation – It is recommended the Center evaluate and update its internal controls and procedures to ensure costs are appropriately considered when preparing the Center's monthly RFRs. Corrective Action Plan – Under new...

Reference Number 2024-006 Prepaid Expenses and Requests for Reimbursement Recommendation – It is recommended the Center evaluate and update its internal controls and procedures to ensure costs are appropriately considered when preparing the Center's monthly RFRs. Corrective Action Plan – Under new leadership, the CACHSC Finance Department fully recognizes the grant requirements stipulating that all expenses must be paid upfront and subsequently submitted for reimbursement. Additionally, annual contracts will now be broken down into monthly submissions to align with these guidelines. These procedures have been formally incorporated into our updated Financial Policies. Proposed Completion Date – Immediately Contact Person – Finance Director: Daniel Sanchez Accountant 2: Thelma Vasquez Bookkeeper: Angie Zecca

View Audit 361057

Finding 569707 (2024-005)

Significant Deficiency 2024

Children's Advocacy Center of Hidalgo County, Inc.

TX

Equipment & Real Property Management

Reference Number 2024-005 Equipment Management Recommendation – It is recommended the Center update the design of its written policies and procedures regarding Equipment Management to ensure all items required under Section 7 Equipment Requirements are addressed. As best practice, the Center should...

Reference Number 2024-005 Equipment Management Recommendation – It is recommended the Center update the design of its written policies and procedures regarding Equipment Management to ensure all items required under Section 7 Equipment Requirements are addressed. As best practice, the Center should consider requiring identification of the date the physical count was performed, the results/conclusion of the count and who performed the count, evidenced by their signature(s). Corrective Action Plan – CACHSC has introduced a new Equipment Management Plan, now included in the Financial Policies. A dedicated staff member has been assigned sole responsibility for maintaining accurate records and updates for all organizational equipment. Proposed Completion Date – Immediately Contact Person – Executive Director: Nadia Ochoa Finance Director: Daniel Sanchez Account 1: Rolando Solis

View Audit 361057

Finding 569706 (2024-001)

Significant Deficiency 2024

Utah Domestic Violence Coalition

UT

Procurement, Suspension & Debarment Subrecipient Monitoring Significant Deficiency § 200.320

2024-001 (Significant Deficiency over Compliance): Insufficient Design of Procurement Policy Criteria: Under CFR 200.320, three types of procurement methods are outlined based on the dollar amount and nature of transactions. Condition: The Organization’s existing procurement policy outlines t...

2024-001 (Significant Deficiency over Compliance): Insufficient Design of Procurement Policy Criteria: Under CFR 200.320, three types of procurement methods are outlined based on the dollar amount and nature of transactions. Condition: The Organization’s existing procurement policy outlines the three methods described under CFR 200.320. However, the policy does not incorporate sufficient monitoring procedures to ensure compliance with the procurement policy Questioned Costs: There were no questioned costs associated with this finding. Effect: This error potentially resulted in the payment of higher prices for goods and services, violating federal procurement regulations. Planned Corrective Actions: The Organization agrees with the finding and will review and revise its procurement policies and procedures to align more closely with current Uniform Guidance and establish monitoring procedures to ensure compliance with CFR 200.320. The Organization will provide additional training to employees and board members to ensure policies and procedures are being followed.

View Audit 361054

Finding 569702 (2024-005)

None 2024

Nebraska Urban Indian Health Coalition, Inc.

NE

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.317 § 200.318 § 200.327

Finding 2024-005 – Procurement Policy (Repeat Finding 2023-004) Condition: During our review of the Coalition's Policies and Procedures, we determined that the Coalition's Procurement policy does not comply with 2 CFR, Part §200.317 - §200.327 In response to the finding related to non-compliance w...

Finding 2024-005 – Procurement Policy (Repeat Finding 2023-004) Condition: During our review of the Coalition's Policies and Procedures, we determined that the Coalition's Procurement policy does not comply with 2 CFR, Part §200.317 - §200.327 In response to the finding related to non-compliance with procurement policies and procedures under Uniform Guidance 2 CFR §200.317 – §200.327, the Nebraska Urban Indian Health Coalition (NUIHC) is committed to ensuring full compliance with all applicable federal, state, local, and tribal procurement requirements. To address this finding and strengthen internal practices, the Coalition will implement the following corrective actions: 1. Procurement Policy Review with External Expertise: NUIHC has contracted with an external consultant with expertise in federal procurement regulations to assist in conducting a thorough review of the organization’s current procurement policies and procedures. This partnership will help ensure that all updates reflect the specific requirements of 2 CFR §200.317 – §200.327 and incorporate best practices in compliance, documentation, and oversight. 2. Update and Alignment of Procedures: With the support of the external contractor, NUIHC will update detailed procurement procedures to ensure they align with Uniform Guidance and any applicable state, local, or tribal procurement laws. Clear step-by-step procedures will be documented for each procurement method (e.g., micro-purchases, small purchases, sealed bids, competitive proposals, and non-competitive proposals). 3. Ongoing Education and Training: NUIHC will implement a continued education and training program for all staff involved in procurement activities. In addition to the initial training on updated policies, refresher training will be offered annually and included as part of new employee onboarding. This will ensure sustained awareness of procurement responsibilities and regulatory compliance. 4. Internal Controls and Review Process: A formal internal control process will be implemented to verify compliance with updated procurement policies. This includes a procurement checklist, mandatory pre-approval protocols, and supporting documentation requirements for every procurement action. 5. Monitoring and Quarterly Compliance Checks: The Coalition will continue conducting quarterly internal audits of procurement activities to ensure adherence to policy, detect potential issues early, and implement timely corrective actions. Findings will be reported to leadership and the Board of Directors as part of ongoing compliance oversight. Timeline for Implementation: • External Consultant Engagement: Completed – May 2025 • Policy and Procedure Review: To be completed by July 31, 2025 • Initial Staff Training: To be conducted by August 15, 2025 • Internal Controls & Monitoring: To be fully implemented by August 31, 2025 • Ongoing Training and Quarterly Reviews: Begin Q3 2025 and continue thereafter Anticipated Full Compliance Date: August 31, 2025 Corrective Action Plan Finding 2024-005 – procurement Policy (Repeat Finding 2023-004) Responsible Party: Chief Financial Officer, Carlett Gregory

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Finding 569700 (2024-004)

None 2024

Nebraska Urban Indian Health Coalition, Inc.

NE

Cash Management § 200.305

Finding 2024-004 – Cash Collateralization (Repeat Finding 2023-003) Condition: During our review of the Coalition’s cash, it was noted that as of September 30, 2024, they have. not collateralized cash balances more than the amounts insured by the Federal Despot Insurance Corporation. Cash balances o...

Finding 2024-004 – Cash Collateralization (Repeat Finding 2023-003) Condition: During our review of the Coalition’s cash, it was noted that as of September 30, 2024, they have. not collateralized cash balances more than the amounts insured by the Federal Despot Insurance Corporation. Cash balances of $7,596,383 were uninsured at September 30, 2024. Unearned revenue was reported at approximately $4,434,584 which includes advance payments of Federal Funds. Corrective Action Plan – Finding 2024-004 Corrective Action: In response to the finding regarding the lack of collateralization for cash balances exceeding the amounts insured by the Federal Deposit Insurance Corporation (FDIC), the Nebraska Urban Indian Health Coalition (NUIHC) acknowledges that corrective actions were initially delayed due to the illness and eventual retirement of the former CEO. However, under new leadership, these actions have since been fully implemented. As of April 2025, NUIHC is in full compliance with the cash collateralization requirements outlined in 2 CFR §200.305(b)(7). A formal cash collateralization agreement has been executed with our financial institutions, ensuring that all cash balances—including advanced federal funds—are now either insured or properly collateralized. In addition to entering into this agreement, the following measures are in the process to strengthen ongoing compliance: 1. Updated Cash Management Policies: Policies are being reviewed and revised to reflect current federal requirements and internal procedures regarding custodial credit risk and cash handling practices. 2. Monitoring and Compliance Controls: A monitoring system is in place to routinely review cash balances and coordinate with our financial institution to ensure all funds remain protected. 3. Staff Training: Targeted training was provided to financial and accounting staff to ensure continued understanding of cash collateralization requirements and the importance of ongoing compliance. Implementation Summary: • Cash Collateralization Agreement: Completed – April 2025 • Policy Revisions and Monitoring System: In process– July 2025 • Staff Training: Completed by – August 2025 Responsible Party: Chief Financial Officer, Carlett Gregory

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Finding 569698 (2024-003)

Significant Deficiency 2024

Nebraska Urban Indian Health Coalition, Inc.

NE

Equipment & Real Property Management

Finding 2024-003 – Equipment and Real Property Management (Compliance; Internal Controls Over Compliance) (Repeat Finding 2023-002) Condition: During our review of the Coalition's internal controls over compliance related to the Title V major program, we noted that the Coalition does not have an a...

Finding 2024-003 – Equipment and Real Property Management (Compliance; Internal Controls Over Compliance) (Repeat Finding 2023-002) Condition: During our review of the Coalition's internal controls over compliance related to the Title V major program, we noted that the Coalition does not have an adequate system of controls established to identify, mark, record, or maintain equipment that has been purchased with federal funds. In addition, no annual physical inventory of the Title V equipment is being performed. Corrective Action Plan – Finding 2024-003 Corrective Action: The Nebraska Urban Indian Health Coalition (NUIHC), in conjunction with our IT provider, has implemented a tracking system to support effective management of computer and other equipment purchased with federal funds. This includes maintaining an active equipment list and regularly updating clinic inventory on a quarterly basis for both clinic sites. Additionally, other organizational equipment is tracked using our depreciation schedule and internal records for assets that do not meet fixed asset thresholds. Inventory identification and tagging procedures are currently underway, with the goal of ensuring all equipment is properly labeled with a unique identifier and clearly marked to reflect Title V or other applicable funding sources. To further strengthen our internal controls and ensure full compliance with 2 CFR §200.313, NUIHC will take the following steps: 1. Development of Written Procedures: Comprehensive written procedures will be finalized and implemented to cover the maintenance, repair, protection, preservation, control, and accountability of all equipment purchased with federal funds. 2. Training for Staff: Additional training will be provided to all relevant staff responsible for equipment procurement, inventory tracking, and maintenance. This training will focus on the importance of proper identification, documentation, and adherence to federal equipment management standards. 3. Ongoing Monitoring: NUIHC will continue quarterly updates of clinic inventories and include periodic spot checks to verify the accuracy of records and physical inventory. Timeline for Implementation: • Finalization of written procedures: By August 31, 2025 • Completion of equipment identification and labeling: By September 30, 2025 • Staff training: Starting August 2025 and incorporated into annual compliance training Responsible Party: Chief Financial Officer, Carlett Gregory Anticipated Completion Date: September 30, 2025

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