Corrective Action Plans

Finding 567756 (2024-011)

Significant Deficiency 2024

State of Michigan

MI

Subrecipient Monitoring Reporting

Finding 2024-011 MDHHS - FFATA Reporting Management Views MDHHS agrees with the finding. Planned Corrective Action The MDHHS Bureau of Grants and Purchasing followed up with the subrecipients regarding unique entity identifier (UEI) account issues in the System for Award Management (SAM) and once ...

Finding 2024-011 MDHHS - FFATA Reporting Management Views MDHHS agrees with the finding. Planned Corrective Action The MDHHS Bureau of Grants and Purchasing followed up with the subrecipients regarding unique entity identifier (UEI) account issues in the System for Award Management (SAM) and once the issues were resolved, the subaward information was submitted. The MDHHS Federal Reporting Section will continue to help ensure the accuracy of the department’s Grants Received Report that is used by the MDHHS Bureau of Grants and Purchasing to report information in SAM. All data elements required to comply with federal funding requirements, such as the Federal Funding Accountability and Transparency Act (FFATA), have been added to the Grants Received Report. The MDHHS Federal Reporting Section will work with the MDHHS Bureau of Grants and Purchasing to develop a more comprehensive process to identify missing data that has not yet been communicated from the federal awarding agency, program area, or others. In the event data elements are missing from the report, the MDHHS Federal Reporting Section will follow up with the awarding agency, program area, or others to update the missing data elements within 30 days of receipt of the award. The MDHHS Bureau of Budget will confirm that a Program Period Code is included on the request form provided by the program office prior to the entry of grant agreements in the Electronic Grants Administration and Management System (EGrAMS). When reviewing grant agreements in EGrAMS, the MDHHS Bureau of Budget will confirm that pertinent coding elements are included prior to approval. In addition, the MDHHS Bureau of Budget will identify EGrAMS agreements with accounting templates that are not initially coded to federal funding, but contain a program code or task code that subsequently splits costs to a federal funding code, and work with the MDHHS Bureau of Grants and Purchasing to help ensure these agreements are included in the query used to obtain data for FFATA reporting. Anticipated Completion Date September 30, 2025 Responsible Individual(s) Jeanette Hensler, MDHHS Rebecca Jones, MDHHS Erik Eklund, MDHHS

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Finding 567755 (2024-007)

Significant Deficiency 2024

State of Michigan

MI

Eligibility Internal Control / Segregation of Duties

Finding 2024-007 CHAMPS 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, the Community Health A...

Finding 2024-007 CHAMPS 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, the Community Health Automated Medicaid Processing System (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. As part of the Departmental Work Intake Process for prioritization, MDHHS submitted a work request during January 2023 for a Bridges system modification that would allow data from the Bridges reports to be exported to the Bridges data warehouse and MDHHS is currently working with DTMB to obtain access to the data. 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 September 30, 2025 Responsible Individual(s) Jamy Hengesbach, MDHHS

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Finding 567727 (2024-036)

Significant Deficiency 2024

State of Michigan

MI

Subrecipient Monitoring

Finding 2024-036 CCDF Cluster, ALN 93.575 and 93.596 - Subaward Information Management Views MiLEAP agrees with the finding. Planned Corrective Action MiLEAP is finalizing grant procedures for reviewing award documents, which will include utilizing a new grant template to help ensure all requireme...

Finding 2024-036 CCDF Cluster, ALN 93.575 and 93.596 - Subaward Information Management Views MiLEAP agrees with the finding. Planned Corrective Action MiLEAP is finalizing grant procedures for reviewing award documents, which will include utilizing a new grant template to help ensure all requirements are included on each award. Anticipated Completion Date July 1, 2025 Responsible Individual(s) Lisa Brewer-Walraven, MiLEAP Brandon Colby, MiLEAP

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Finding 567726 (2024-035)

Material Weakness 2024

State of Michigan

MI

Subrecipient Monitoring Material Weakness Reporting

Finding 2024-035 CCDF Cluster, ALN 93.575 and 93.596 - FFATA Reporting Management Views MiLEAP and MDE agree with the finding. Planned Corrective Action MiLEAP will implement a process to ensure it submits subaward information as required by FFATA and federal guidance. Anticipated Completion Da...

Finding 2024-035 CCDF Cluster, ALN 93.575 and 93.596 - FFATA Reporting Management Views MiLEAP and MDE agree with the finding. Planned Corrective Action MiLEAP will implement a process to ensure it submits subaward information as required by FFATA and federal guidance. Anticipated Completion Date September 2025 Responsible Individual(s) Lora MacKay, MiLEAP

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Finding 567725 (2024-034)

Significant Deficiency 2024

State of Michigan

MI

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

Finding 2024-034 CCDF Cluster, ALN 93.575 and 93.596 - Provider Health and Safety Requirements Management Views MiLEAP agrees with the finding. Planned Corrective Action To improve compliance and inspection timeliness, MiLEAP took the following key steps: • Increased staffing: In fiscal year 202...

Finding 2024-034 CCDF Cluster, ALN 93.575 and 93.596 - Provider Health and Safety Requirements Management Views MiLEAP agrees with the finding. Planned Corrective Action To improve compliance and inspection timeliness, MiLEAP took the following key steps: • Increased staffing: In fiscal year 2024, the Child Care Licensing Bureau (CCLB) initiated the hiring of 22 additional licensing consultants across all eight established regions, significantly increasing statewide capacity. All new consultants began their positions by November 2024. Upon hire, they entered a structured training program with the goal of receiving caseload assignments within six months. This strategic staffing expansion has already led to a 30.0 percent reduction in the average caseload per consultant from 88 to 61 facilities aligning more closely with best practice recommendations and enabling more timely inspections. As these new consultants complete training and receive full caseloads, CCLB anticipates an increase in completed onsite inspections, improved timeliness, and enhanced capacity to meet the growing needs of child care providers. • Enhanced regional oversight: In fiscal year 2025, CCLB established lead worker positions in each child care region. These lead workers support area managers in monitoring consultant caseloads and inspection schedules to ensure annual inspections are completed in compliance with federal requirements. • Process improvements through technology: CCLB continues to utilize the Child Care Hub Information Records Portal in a mobile format, improving data access and streamlining on-site inspections. Providers are encouraged to utilize the system during onsite inspections to facilitate faster and more efficient communication and documentation. Anticipated Completion Date Ongoing Responsible Individual(s) Courtney Adams, MiLEAP Scott Bettys, MiLEAP Erika Bigelow, MiLEAP Monica Sturdivant, MiLEAP

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Finding 567724 (2024-033)

Significant Deficiency 2024

State of Michigan

MI

Questioned Costs Matching / Level of Effort / Earmarking § 200.516

Finding 2024-033 CCDF Cluster, ALN 93.575 and 93.596 - Client Eligibility Management Views MiLEAP and MDHHS agree with the finding. Planned Corrective Action MiLEAP and MDHHS ESA will continue to work together to help ensure compliance with client eligibility requirements by providing guidance on ...

Finding 2024-033 CCDF Cluster, ALN 93.575 and 93.596 - Client Eligibility Management Views MiLEAP and MDHHS agree with the finding. Planned Corrective Action MiLEAP and MDHHS ESA will continue to work together to help ensure compliance with client eligibility requirements by providing guidance on updated policies, processes, and noted trends to local office and BSC staff. On October 1, 2024, MDHHS ESA distributed an ESA memo to BSCs and local offices requiring a Child Development and Care eligibility checklist to be completed and uploaded to the electronic case file at the time of each Child Development and Care application and redetermination to help ensure the authorized hours of care in Bridges does not exceed the client's documented need for hours of childcare services. The ESA memo also requires local offices that have not yet achieved compliance to review a sample of cases monthly and ensure the Child Development and Care eligibility checklist is properly uploaded to the electronic case file. The BSCs receive the monthly results from the local offices and also monitor progress to help ensure compliance. Anticipated Completion Date Ongoing Responsible Individual(s) Lisa Brewer-Walraven, MiLEAP Mariah Schaefer, MDHHS Gayle Vail, MDHHS

View Audit 360209 Questioned Costs: $1

Finding 567723 (2024-032)

Significant Deficiency 2024

State of Michigan

MI

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

Finding 2024-032 CCDF Cluster, ALN 93.575 and 93.596 - MWBC Child Care System User Access Management Views MiLEAP agrees with the finding. Planned Corrective Action The Michigan Workforce Background Check (MWBC) Child Care System is used to conduct and record the results of criminal history checks...

Finding 2024-032 CCDF Cluster, ALN 93.575 and 93.596 - MWBC Child Care System User Access Management Views MiLEAP agrees with the finding. Planned Corrective Action The Michigan Workforce Background Check (MWBC) Child Care System is used to conduct and record the results of criminal history checks for child care providers and is comprised of multiple modules, including the Consultant Portal and Analyst Portal. Each portal serves distinct functions, carrying varying levels of access to background check information and functionality. MiLEAP acknowledges that internal controls should more explicitly require module-specific documentation. To address this, MiLEAP has reinforced its access control procedures to ensure the Child Care Background Check (CCBC) Access and Security Agreement directs that access requests be sent to the manager of the CCBC unit and explicitly documents the specific portals being requested. The CCBC unit manager is responsible for reviewing and granting access to both the Analyst and Consultant portals based on the user’s role and job duties. MiLEAP has reinforced this policy as of May 2024 with appropriate staff to ensure compliance and improve documentation for each portal. Anticipated Completion Date Completed Responsible Individual(s) Jacob Poynter, MiLEAP Monica Sturdivant, MiLEAP

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Finding 567716 (2024-031)

Significant Deficiency 2024

State of Michigan

MI

Subrecipient Monitoring § 200.332

Finding 2024-031 Twenty-First Century Community Learning Centers, ALN 84.287 - Program Fiscal Reviews Management Views The Michigan Department of Lifelong Education, Advancement, and Potential (MiLEAP) agrees with the finding. Planned Corrective Action In January 2025, MiLEAP assigned an auditor t...

Finding 2024-031 Twenty-First Century Community Learning Centers, ALN 84.287 - Program Fiscal Reviews Management Views The Michigan Department of Lifelong Education, Advancement, and Potential (MiLEAP) agrees with the finding. Planned Corrective Action In January 2025, MiLEAP assigned an auditor to conduct fiscal reviews to monitor activities of subrecipients of the Twenty-First Century Community Learning Centers program. Anticipated Completion Date Completed Responsible Individual(s) Lora MacKay, MiLEAP

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Finding 567706 (2024-030)

Significant Deficiency 2024

State of Michigan

MI

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting § 200.302

Finding 2024-030 Rehabilitation Services Vocational Rehabilitation Grants to States, ALN 84.126 - Accuracy of Financial Reports Management Views LEO agrees with the finding. Planned Corrective Action The LEO Finance Division will implement the following: 1. Improvements to documented procedures f...

Finding 2024-030 Rehabilitation Services Vocational Rehabilitation Grants to States, ALN 84.126 - Accuracy of Financial Reports Management Views LEO agrees with the finding. Planned Corrective Action The LEO Finance Division will implement the following: 1. Improvements to documented procedures for the Vocational Rehabilitation Financial Report (RSA-17) preparation to ensure consistency and accuracy of financial report submissions. 2. Specific RSA-17 training for applicable staff and management in order to enhance knowledge of reporting requirements. 3. An additional layer of management review on RSA-17 financial reports prior to submission. Anticipated Completion Date September 30, 2025 Responsible Individual(s) Heidi Parker, LEO Chris Johnson, LEO

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Finding 567704 (2024-029)

Significant Deficiency 2024

State of Michigan

MI

Subrecipient Monitoring § 200.332

Finding 2024-029 Adult Education - Basic Grants to States, ALN 84.002 - During-the-Award Monitoring and Subaward Information Management Views LEO agrees with the finding. Planned Corrective Action For part a., the Adult Education - Basic Grants to States program (Adult Education) Workforce Innovat...

Finding 2024-029 Adult Education - Basic Grants to States, ALN 84.002 - During-the-Award Monitoring and Subaward Information Management Views LEO agrees with the finding. Planned Corrective Action For part a., the Adult Education - Basic Grants to States program (Adult Education) Workforce Innovation and Opportunity Act Regional Coordinators and Financial Specialist are currently finishing the review of the final narrative reports and final expenditure reports for each of the 92 subrecipients. These reviews will be completed by June 30, 2025. Other Adult Education staff will be cross trained to assist in the review process in case there are competing priorities in the future. For part b., once it was determined that the FAIN was incorrect on the Grant Award Notification (GAN), staff corrected the FAIN in NexSys and worked with the NexSys programmers to have the GANs reissued on April 8, 2025. A communication to alert subrecipients of the update was sent on June 6, 2025. LEO also updated procedures to include multiple staff reviews of the GAN information to ensure accuracy before the GANs are released in NexSys. Anticipated Completion Date a. June 30, 2025 b. Completed Responsible Individual(s) Erica Luce, LEO Patty Higgins, LEO Brian Frazier, LEO Kari Hiner, LEO Sue Muzillo, LEO

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Finding 567699 (2024-028)

Significant Deficiency 2024

State of Michigan

MI

Subrecipient Monitoring § 200.332 § 200.501 § 200.521

Finding 2024-028 Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027 - Subrecipient Audits Management Views For part a., LEO agrees with the finding. All three of MSF’s subrecipient awards for the fiscal year were sampled totaling approximately $274,000 (0.3 percent of the total award). ...

Finding 2024-028 Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027 - Subrecipient Audits Management Views For part a., LEO agrees with the finding. All three of MSF’s subrecipient awards for the fiscal year were sampled totaling approximately $274,000 (0.3 percent of the total award). While MSF agrees with the finding that it did not have a written process to verify single audit compliance, management believes that MSF’s risk assessment of subrecipients adequately determined that single audit verification was not required for two of its subrecipients since, based on all anticipated federal awards for the subrecipient, it was not expected that they would reach the expenditure threshold (2 CFR 200.332(f)). The third annually files a single audit, was expected to file a single audit, and did file a single audit. For part b., EGLE agrees with the finding. Planned Corrective Action For part a., the LEO Internal Controls Unit (LEO-IC) will expand LEO’s subrecipient monitoring function for the Coronavirus State and Local Fiscal Recovery Funds and update procedures to include sending an inquiry to subrecipients to determine whether they meet the requirements for a single audit, ensuring that audits are received and reviewed, and issuing management decision letters (when applicable). LEO-IC will train staff on the new procedures and is in the process of hiring another individual to assist with subrecipient monitoring. MSF completed its risk assessment in November 2024 and determined it necessary to update the existing process. On March 4, 2025, MSF implemented an updated process to notify subrecipients of single audit requirements and require feedback on the status of the funding. A Single Audit Certification letter is sent to all subrecipients via email and requires a response to whether a single audit would be required for the fiscal year. The response is then documented and MSF will review the single audits for all subrecipients for which an audit is required to be completed. For part b., the EGLE Budget unit within the Finance Division has assigned responsible staff and began reviewing single audits of applicable subrecipients for fiscal year 2024 activity and will be fully compliant for this subrecipient monitoring cycle and moving forward. Anticipated Completion Date a. LEO: August 31, 2025 MSF: Completed b. EGLE: Completed Responsible Individual(s) a. Christopher Blondell, LEO Allen Williams, LEO Gregory West, MSF Christine Whitz, MSF Lori Mullins, MSF David Meninga, MSF b. Jon Doyle, EGLE Daniel Lance, EGLE

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Finding 567698 (2024-027)

Significant Deficiency 2024

State of Michigan

MI

Subrecipient Monitoring Internal Control / Segregation of Duties § 200.332

Finding 2024-027 Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027 - Subaward Information Management Views MDOT and LEO agree with parts a. and b. of the finding, respectively. For part c., the Michigan Strategic Fund (MSF) agrees that the subaward agreements did not specify whether th...

Finding 2024-027 Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027 - Subaward Information Management Views MDOT and LEO agree with parts a. and b. of the finding, respectively. For part c., the Michigan Strategic Fund (MSF) agrees that the subaward agreements did not specify whether the award was for research and development (R&D) purposes. The omission occurred because MSF does not administer awards intended to support R&D activities under this program; accordingly, this designation was not included in the grant agreement. MSF also agrees that the subaward agreements did not include an indirect cost rate. MSF did not fund indirect costs as part of this program; therefore, an indirect cost rate was not included in the grant agreement. Planned Corrective Action For part a., MDOT will incorporate into its current process all required subaward information to ensure it is reported to subrecipients, which will include, but not be limited to, UEI, Federal Award Identification Number (FAIN), federal award date, subaward period of performance start and end date, subaward budget period start and end date, federal awarding agency name, assistance listing number (ALN) title, identification of whether the award is for R&D, indirect cost rate for the federal award, an approved federally recognized indirect cost rate for the subrecipient, and the closeout terms and conditions. MDOT will also provide current subrecipients with the missing required subaward information. For part b., the LEO Prosperity Division will review records to identify all subrecipients that were previously provided with incorrect FAINs and will provide them with correct information. In addition, the LEO Prosperity Division will implement a procedural change to have a reviewer check to ensure that award information is accurately stated before grant issuance. For part c., to align with Uniform Guidance requirements (2 CFR 200.332(a)) all future agreements under the program will explicitly state that: 1) funding is not intended to support R&D activities; and 2) indirect costs are not eligible costs. All applicable current subrecipients will be notified of the same. Anticipated Completion Date a. September 30, 2025 b. July 31, 2025 c. July 31, 2025 Responsible Individual(s) a. Gina Huhn, MDOT Jean Ruestman, MDOT b. Denise Flannery, LEO c. Jay Williams, MSF Amy Rencher, MSF Gregory West, MSF Christine Whitz, MSF Christina Degrow, MSF

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Finding 567697 (2024-026)

Significant Deficiency 2024

State of Michigan

MI

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties § 200.303

Finding 2024-026 Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027 - Workfront Security Management and Access Controls Management Views DTMB agrees with the finding. Planned Corrective Action DTMB implemented process improvements in May 2024 related to the tracking and documentation of...

Finding 2024-026 Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027 - Workfront Security Management and Access Controls Management Views DTMB agrees with the finding. Planned Corrective Action DTMB implemented process improvements in May 2024 related to the tracking and documentation of user access requests to support approval of user access and system roles. The exceptions cited are related to users whose access was granted prior to the improved documentation being implemented. Anticipated Completion Date Completed Responsible Individual(s) Jennifer Edmonds, DTMB

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Finding 567696 (2024-025)

Significant Deficiency 2024

State of Michigan

MI

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

Finding 2024-025 Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027 - Insufficient Respite Payment Controls Management Views MDHHS agrees with the finding. Planned Corrective Action During fiscal year 2024, MDHHS improved the payment review process prior to manual input into the Medic...

Finding 2024-025 Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027 - Insufficient Respite Payment Controls Management Views MDHHS agrees with the finding. Planned Corrective Action During fiscal year 2024, MDHHS improved the payment review process prior to manual input into the Medical Services Administration Manual Payment System (MSAPay) to help ensure there are no improper payments, as demonstrated by no improper payments identified for fiscal year 2024. MDHHS will develop and implement a post payment review process for the final respite payments that were entered into MSAPay during December 2024 and anticipates completion by September 30, 2025. Anticipated Completion Date September 30, 2025 Responsible Individual(s) Crystal Kline, MDHHS Jessica Bowen, MDHHS Elaina Brown, MDHHS

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Finding 567695 (2024-024)

Significant Deficiency 2024

State of Michigan

MI

Allowable Costs / Cost Principles Cash Management Eligibility § 200.303

Finding 2024-024 Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027 - Grant Reimbursement Approval Procedures Management Views EGLE agrees with the finding. Planned Corrective Action The EGLE Water Resources Division’s (WRD) administration staff adjusted their review process in April 20...

Finding 2024-024 Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027 - Grant Reimbursement Approval Procedures Management Views EGLE agrees with the finding. Planned Corrective Action The EGLE Water Resources Division’s (WRD) administration staff adjusted their review process in April 2024 to comply with overall EGLE guidance that all reimbursement requests should be reviewed by a program representative and financial representative to ensure payments are made for activities authorized by the grant agreement. However, WRD had not fully completed the retroactive review of payments for fiscal year 2024. This has since been corrected and all retroactive reviews to ensure compliance with program technical specifications were completed as of May 1, 2025. Anticipated Completion Date Completed Responsible Individual(s) Phil Argiroff, EGLE Amy Hicks, EGLE

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Finding 567694 (2024-023)

Significant Deficiency 2024

State of Michigan

MI

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

Finding 2024-023 Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027 - PTMS Security Management and Access Controls Management Views MDOT agrees with the finding. Planned Corrective Action MDOT EIM and Office of Passenger Transportation will collaborate and provide oversight to ensure ...

Finding 2024-023 Coronavirus State and Local Fiscal Recovery Funds, ALN 21.027 - PTMS Security Management and Access Controls Management Views MDOT agrees with the finding. Planned Corrective Action MDOT EIM and Office of Passenger Transportation will collaborate and provide oversight to ensure that Public Transportation Management System (PTMS) user access is reviewed semiannually for privileged accounts and annually for all other accounts. MDOT will implement an improved process which will include obtaining, verifying, and documenting the written approval for all identified users by the designated System Security Administrators. Access will be modified/removed, as appropriate, based on responses or removed for non-responders prior to the end of each six-month period for privileged users and each fiscal year for all other users. Anticipated Completion Date September 30, 2025 Responsible Individual(s) Sandy Lovell, MDOT Gina Huhn, MDOT Jean Ruestman, MDOT Kyle Nelson, MDOT Andy Esch, MDOT

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Finding 567691 (2024-001)

Significant Deficiency 2024

State of Michigan

MI

Subrecipient Monitoring Internal Control / Segregation of Duties

Finding 2024-001 SIGMA High-Risk Activity Monitoring Management Views LEO agrees with the finding. Planned Corrective Action The LEO Finance Division will implement the following: 1. Updated procedures that ensure completeness of high-risk activity reports by adjusting date parameters of weekly ...

Finding 2024-001 SIGMA High-Risk Activity Monitoring Management Views LEO agrees with the finding. Planned Corrective Action The LEO Finance Division will implement the following: 1. Updated procedures that ensure completeness of high-risk activity reports by adjusting date parameters of weekly reports. 2. A layer of review by management that oversees SIGMA override processes and transactions to ensure appropriateness. 3. A procedure to ensure the adequate retention of management review documents. Anticipated Completion Date August 31, 2025 Responsible Individual(s) Robert Mason, LEO Mary McGrath, LEO

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Finding 567688 (2024-022)

Significant Deficiency 2024

State of Michigan

MI

Matching / Level of Effort / Earmarking Procurement, Suspension & Debarment Allowable Costs / Cost Principles § 200.303

Finding 2024-022 Highway Planning and Construction, ALN 20.205 - AASHTOWare Security Management and Access Controls Management Views MDOT agrees with the finding. Planned Corrective Action MDOT’s Office of Enterprise Information Management (EIM), Bureau of Field Services-Construction Field Service...

Finding 2024-022 Highway Planning and Construction, ALN 20.205 - AASHTOWare Security Management and Access Controls Management Views MDOT agrees with the finding. Planned Corrective Action MDOT’s Office of Enterprise Information Management (EIM), Bureau of Field Services-Construction Field Services Division, and Bureau of Development-Design Division will collaborate and provide oversight to ensure that user access for the American Association of State Highway and Transportation Officials software (AASHTOWare) Preconstruction and Construction & Materials modules is reviewed semiannually for privileged accounts and annually for all other accounts. MDOT will implement an improved process, which will be facilitated by the designated System Security Administrators, and access will be modified or removed, as appropriate, prior to the end of each six-month period for privileged users and annually for all other users. Anticipated Completion Date January 1, 2026 Responsible Individual(s) Mark Shulick, MDOT Dan Burns, MDOT Kristin Schuster, MDOT Dee Parker, MDOT Lindsey Renner, MDOT Jason Gutting, MDOT Kyle Nelson, MDOT Andy Esch, MDOT

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Finding 567681 (2024-060)

None 2024

State of Michigan

MI

Finding 2024-060 Unemployment Insurance, ALN 17.225 See Department of Labor and Economic Opportunity, Unemployment Insurance Agency - Unemployment Compensation Fund, Report on Expenditure of Federal Awards, Year Ended September 30, 2024, Corrective Action Plan, Finding 2024-003.

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Finding 567680 (2024-059)

None 2024

State of Michigan

MI

Finding 2024-059 Unemployment Insurance, ALN 17.225 See Department of Labor and Economic Opportunity, Unemployment Insurance Agency - Unemployment Compensation Fund, Report on Expenditure of Federal Awards, Year Ended September 30, 2024, Corrective Action Plan, Finding 2024-002.

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Finding 567679 (2024-058)

Material Weakness 2024

State of Michigan

MI

Questioned Costs

Finding 2024-058 Unemployment Insurance, ALN 17.225 See Department of Labor and Economic Opportunity, Unemployment Insurance Agency - Unemployment Compensation Fund, Report on Expenditure of Federal Awards, Year Ended September 30, 2024, Corrective Action Plan, Finding 2024-001.

View Audit 360209 Questioned Costs: $1

Finding 567678 (2024-021)

Significant Deficiency 2024

State of Michigan

MI

Internal Control / Segregation of Duties Subrecipient Monitoring Period of Performance § 200.303 § 200.308

Finding 2024-021 National Guard Military Operations and Maintenance (O&M) Projects, ALN 12.401 - Extension Procedures Management Views DMVA agrees with the finding. Planned Corrective Action DMVA will set annual recurring calendar appointments to review program activities with the program managers...

Finding 2024-021 National Guard Military Operations and Maintenance (O&M) Projects, ALN 12.401 - Extension Procedures Management Views DMVA agrees with the finding. Planned Corrective Action DMVA will set annual recurring calendar appointments to review program activities with the program managers one month before the end of the period of performance to ensure a joint understanding of extension requirements, allowing sufficient time to prepare and submit period of performance extension requests timely, if needed. Anticipated Completion Date September 1, 2025 Responsible Individual(s) Rachelle Breeden, DMVA

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Finding 567677 (2024-020)

Significant Deficiency 2024

State of Michigan

MI

Cash Management § 200.303

Finding 2024-020 National Guard Military Operations and Maintenance (O&M) Projects, ALN 12.401 - Timeliness of Cash Draws Management Views The Department of Military and Veterans Affairs (DMVA) agrees with the finding. Planned Corrective Action DMVA has communicated the importance of timely compl...

Finding 2024-020 National Guard Military Operations and Maintenance (O&M) Projects, ALN 12.401 - Timeliness of Cash Draws Management Views The Department of Military and Veterans Affairs (DMVA) agrees with the finding. Planned Corrective Action DMVA has communicated the importance of timely completion of cash draws. DMVA will consolidate expenditure reports sent to federal program managers to reduce overall quantity and improve timeliness. Additionally, DMVA will implement a revised document management methodology for expenditure reports returned from federal program managers that are ready for final approval and submission to the United States Property and Fiscal Office. Anticipated Completion Date September 30, 2025 Responsible Individual(s) Rachelle Breeden, DMVA

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Finding 567676 (2024-010)

Significant Deficiency 2024

State of Michigan

MI

Internal Control / Segregation of Duties § 200.303

Finding 2024-010 MDE, Change Management Process Management Views MDE agrees with the finding. Planned Corrective Action For MiND, the standard change management process requires documenting the test results. However, there are scenarios when the data in question is only in the production environme...

Finding 2024-010 MDE, Change Management Process Management Views MDE agrees with the finding. Planned Corrective Action For MiND, the standard change management process requires documenting the test results. However, there are scenarios when the data in question is only in the production environment; or it might be production specific deployment like changing application settings which does not have relevance to the test environment. In these cases, MDE will maintain documentation in DevOps that the deployment is production specific. MDE will increase the post-review process of MiND related work items from a semi-annual to quarterly basis to ensure all required evidence of testing is recorded appropriately. For NexSys, MDE will review the change management process with DTMB and implement additional steps to ensure tickets are closed in a timely manner and all testing results have been appropriately documented. Anticipated Completion Date September 30, 2025 Responsible Individual(s) Monica Butler, MDE Peter Jones, MDE

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Finding 567675 (2024-009)

Significant Deficiency 2024

State of Michigan

MI

Subrecipient Monitoring § 200.303

Finding 2024-009 MDE, Security Management and Access Controls Management Views The Michigan Department of Education (MDE) agrees with the finding. Planned Corrective Action For part a., with the release of Michigan Nutrition Data (MiND) 2.0 in November 2024, the system now has the added documentat...

Finding 2024-009 MDE, Security Management and Access Controls Management Views The Michigan Department of Education (MDE) agrees with the finding. Planned Corrective Action For part a., with the release of Michigan Nutrition Data (MiND) 2.0 in November 2024, the system now has the added documentation supporting the individual approved system roles required for this security control. For part b.1., MDE will start reviewing non-privileged internal Grant Electronic Monitoring System/Michigan Administrative Review System accounts on an annual basis and will store documentation of the review. MDE has started writing the policy adjustment for this change. To validate their continued need, MDE will annually review all MiND accounts for appropriate access that have access to SOM proprietary information. For part b.2., MDE has provided input to DTMB on this technical control, and MDE intends to comply with the revised SOM Technical Standard 1340.00.020.01 (Access Control Standard). MDE plans to complete both the policy adjustment and the annual review for 2025 by December 31, 2025. For part c., MDE implemented the process for deactivating users to meet this security requirement in November 2024 when MiND 2.0 was released. The process for deactivating users to meet this security requirement for the Next Generation Grant, Application and Cash Management System (NexSys) was implemented in May 2025. Anticipated Completion Date a. Completed b.1. September 30, 2025 b.2. December 31, 2025 c. Completed Responsible Individual(s) Monica Butler, MDE Joshua Long, MDE Peter Jones, MDE David Judd, MDE

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