Corrective Action Plans

Finding 1214129 (2025-021)

Material Weakness 2025

MA

Reporting § 200.303

2025-021 Aging Cluster 93.044, 93.045, 93.053 Recommendation: We recommend the Department develop procedures and internal controls to ensure that it submits reports for all grant awards it receives for the program, in accordance with its grant agreements. Action taken in response to finding: AGE wil...

2025-021 Aging Cluster 93.044, 93.045, 93.053 Recommendation: We recommend the Department develop procedures and internal controls to ensure that it submits reports for all grant awards it receives for the program, in accordance with its grant agreements. Action taken in response to finding: AGE will enhance formal procedures and internal controls to ensure that all required Federal Financial Reports (SF-425) and Title III Supplemental Forms are submitted in accordance with grant agreements and federal reporting timelines. Management is establishing a centralized reporting calendar and tracking mechanism to monitor reporting deadlines for all active awards. Name(s) of the contact person(s) responsible for corrective action: Sheila Tunney, Chief Financial Officer, Christina H. Martinez, Director of Contracts and Accounting Planned completion date for corrective action plan: June 30, 2026

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Finding 1214124 (2025-020)

Material Weakness 2025

Commonwealth of Massachusetts

MA

Procurement, Suspension & Debarment Subrecipient Monitoring Material Weakness § 200.303

2025-020 COVID-19 – Elementary and Secondary School Emergency Relief Fund, COVID-19 – American Rescue Plan-Elementary and Secondary School Emergency Relief (ARP ESSER) 84.425D, 84.425U Recommendation: We recommend the Department develop procedures and internal controls to ensure that all required su...

2025-020 COVID-19 – Elementary and Secondary School Emergency Relief Fund, COVID-19 – American Rescue Plan-Elementary and Secondary School Emergency Relief (ARP ESSER) 84.425D, 84.425U Recommendation: We recommend the Department develop procedures and internal controls to ensure that all required subawards are reported timely and accurately no later than the end of the month following the month of issuance of each subaward. Action taken in response to finding: The Department is updating internal procedures to ensure timely and accurate reporting of all required subawards. While there have been some technical challenges with SAM.gov, the Department is proactively reaching out to U.S. Department of Education contacts to resolve issues and maintaining a record of each outreach attempt. Staff responsibilities and monitoring procedures are being strengthened to support accurate reporting. Name(s) of the contact person(s) responsible for corrective action: Julia Jou, Budget Director, Rob Curtin, Deputy Commissioner, Erica Gonzales, Associate Commissioner Data & Accountability, Joseph Valchuis, Audit Supervisor Planned completion date for corrective action plan: April 15, 2026

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Finding 1214122 (2025-019)

Material Weakness 2025

Commonwealth of Massachusetts

MA

Subrecipient Monitoring § 200.303 § 200.332

2025-019 WIOA Cluster 17.258, 17.259, 17.278 Recommendation: We recommend the Department review and enhance internal controls and procedures to ensure that required information is included in its subawards. In its FY 2024 corrective action plan, the Department indicated that it had revised its docum...

2025-019 WIOA Cluster 17.258, 17.259, 17.278 Recommendation: We recommend the Department review and enhance internal controls and procedures to ensure that required information is included in its subawards. In its FY 2024 corrective action plan, the Department indicated that it had revised its documented internal controls and procedures to correct the prior year finding. We recommend that the Department revisit its procedures and controls and update as needed to ensure that the federal award date is included in all subaward agreements. Action taken in response to finding: MHDCS will immediately revise its internal control procedures to now include the Federal Award issue date. Because these issue dates are not on a predetermined schedule, a separate correspondence will be sent to each sub awardee notifying them of the formal issue date of each sub award upon receipt of the award. All Oversight & Compliance and Fiscal Support staff reviewing this information will meet following a stated agenda to be made aware of this revision to the internal control procedures. Supporting documentation of this procedural change can be provided upon completion. This supporting documentation will be maintained in the centrally located SharePoint folders by local areas or sub-awardee. Name(s) of the contact person(s) responsible for corrective action: Michael Williams- Oversight & Compliance Director Planned completion date for corrective action plan: The anticipated implementation completion date will correspond with the sub-awardees next issue date of Federal sub-awards; but not later than June 30, 2026.

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Finding 1214119 (2025-018)

Material Weakness 2025

Commonwealth of Massachusetts

MA

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.303 § 200.430

2025-018 WIOA Cluster 17.258, 17.259, 17.278 Recommendation: We recommend the Department develop procedures and controls to ensure expenditures coded to the GDF from timesheets or manual adjustments do not exceed the 15% limit. Action taken in response to finding: In FY26, phase codes associated wit...

2025-018 WIOA Cluster 17.258, 17.259, 17.278 Recommendation: We recommend the Department develop procedures and controls to ensure expenditures coded to the GDF from timesheets or manual adjustments do not exceed the 15% limit. Action taken in response to finding: In FY26, phase codes associated with federal grant activity will be further disaggregated and mapped in MMARS screen BQ87 (Federal Grant Phase Budget Status). This enhancement has improved the accuracy and clarity of budget-to-actual comparisons by providing a clearer breakout of expenditures by phase. It will also strengthen internal controls and facilitate better alignment between MMARS, Finance Data Mart, and federal reporting requirements. This new internal controls has been deployed on all FY26 grants and was not audited during this period. Name(s) of the contact person(s) responsible for corrective action: Finance: Sarah Shannon, Ken Luke Planned completion date for corrective action plan: Process is in place and completed on 12/31/2025 and practice is deployed for all new grants requiring break out amounts.

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Finding 1214116 (2025-017)

Material Weakness 2025

Commonwealth of Massachusetts

MA

Allowable Costs / Cost Principles § 200.303 § 200.430

2025-017 WIOA Cluster 17.258, 17.259, 17.278 Recommendation: We recommend the Department complete implementation of its corrective action plan from the prior year. The Department should update its procedures and controls and perform additional training over time and effort reporting to ensure that p...

2025-017 WIOA Cluster 17.258, 17.259, 17.278 Recommendation: We recommend the Department complete implementation of its corrective action plan from the prior year. The Department should update its procedures and controls and perform additional training over time and effort reporting to ensure that payroll costs charged to the program are based on actual time and effort and a combination code that is allowable under the program. The Department should not seek federal reimbursement unless it can substantiate that the time and effort was dedicated to the federal program. Action taken in response to finding: Ongoing training is provided for new staff to ensure they correctly enter combo codes that align with the activities performed. To strengthen oversight, a custom report has been developed to identify employees with missing combo codes each week, allowing Finance staff to proactively follow up and ensure proper time charging weekly. Finance will continue to enhance the custom report to ensure all paid TRCs are linked and properly monitor any missing combo codes in timesheets each pay period. Any new additional pay entered by Human Resource in the HR/CMS system, Human Resource will notify Finance to ensure a proper combo code or an appropriate account is assigned. Finance will collaborate with departments throughout the fiscal year to update labor distribution profiles, ensuring that employees are defaulted to the correct funding sources in accordance with approved labor distribution profiles for accurate and efficient time reporting. A custom report has been developed for managers and time approvers to validate that employee labor distribution profiles are regularly confirmed and updated in accordance with weekly time and effort. To further strengthen internal control preventive measures Finance will be monitoring variances between charged payroll data in relation to the labor distribution profiles to identify any large variances that need to be addressed. Name(s) of the contact person(s) responsible for corrective action: Finance: Anna Yong, Vina Yung, Sarah Shannon, Mai Giang, Stephanie Wong, HR/Payroll: Cheryl Stanton, Linda Stevens, DCS: David Manning, Beth Goguen Planned completion date for corrective action plan: 6/30/2026

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Finding 1214113 (2025-016)

Material Weakness 2025

Commonwealth of Massachusetts

MA

Material Weakness Reporting Equipment & Real Property Management § 200.303

2025-016 WIOA Cluster 17.258, 17.259, 17.278 Recommendation: We recommend the Department complete implementation of its corrective action plan from the prior year. The Department should review its procedures to ensure that ETA 9130 reports are accurate and agree with supporting documentation. We fur...

2025-016 WIOA Cluster 17.258, 17.259, 17.278 Recommendation: We recommend the Department complete implementation of its corrective action plan from the prior year. The Department should review its procedures to ensure that ETA 9130 reports are accurate and agree with supporting documentation. We further recommend that internal controls are enhanced to ensure that reports are reviewed for accuracy prior to submission. Action taken in response to finding: ETA 9130 reports are jointly reviewed by Finance and program staff before submission and certification. Supporting documentations are cross-checked for accuracy and completeness, and all relevant files are maintained in a centralized, shared folder to ensure transparency and accountability. This multi-layered review and documentation process has been incorporated into a standard quarterly reporting procedures to prevent future discrepancies and ensure federal reporting integrity. New internal controls and procedures were established 8/30/2025, in which this audit has not reviewed yet. Name(s) of the contact person(s) responsible for corrective action: Finance: Sarah Shannon, Ken Luke, Vina Yung, DCS: David Manning Planned completion date for corrective action plan: Already completed – staff trained and provided with new SOP on 8/30/2025.

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Finding 1214110 (2025-015)

Material Weakness 2025

Commonwealth of Massachusetts

MA

Procurement, Suspension & Debarment Subrecipient Monitoring Material Weakness § 200.303

2025-015 WIOA Cluster 17.258, 17.259, 17.278 Recommendation: We recommend the Department complete implementation of its corrective action plan from the prior year. The Department’s procedures and internal controls should ensure that all required FFATA report submissions are reviewed, approved and su...

2025-015 WIOA Cluster 17.258, 17.259, 17.278 Recommendation: We recommend the Department complete implementation of its corrective action plan from the prior year. The Department’s procedures and internal controls should ensure that all required FFATA report submissions are reviewed, approved and subsequently reported timely no later than the end of the month following the month of issuance of the subaward or subaward modification. Documentation of implemented controls should be readily available for audit. Action taken in response to finding: Reporting under FFATA is triggered when the department and the local areas agree on budgets — i.e., at the point when the state forms an official obligation amount. This change is meant to more closely align with FFATA guidance which specifies that “you must report each obligating action … no later than the end of the month following the month in which the obligation was made.” U.S. Election Assistance Commission. Importantly, the guidance states: “Only report on subaward obligations. Do not report individual payments made to subrecipients.” Previously, FFATA was triggered when an encumbrance was recorded. By aligning FFATA reporting with the point at which the state formally obligates funds through approved local budgets, rather than when encumbrances are recorded, the process more accurately reflects the definition of an obligating action and strengthens overall compliance with FFATA requirements. Ongoing monitoring will continue to ensure reporting remains timely and accurate, with periodic reviews conducted to assess performance and identify any needed updates to the SOP. These revisions were fully implemented by 09/30/2025. New internal controls and procedures were established 9/30/2025, in which this audit has not reviewed yet. Name(s) of the contact person(s) responsible for corrective action: Finance: Sarah Shannon, Sam Potel Planned completion date for corrective action plan: Already completed – staff trained and provided with new SOP on 9/30/2025.

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Finding 1214107 (2025-014)

Material Weakness 2025

Commonwealth of Massachusetts

MA

Allowable Costs / Cost Principles § 200.303

2025-014 WIOA Cluster, Employment Service Cluster 17.258, 17.259, 17.278, 17.207, 17.801 Recommendation: The Department should review and enhance its procedures and internal controls regarding the calculation of its negotiated indirect cost rate and for maintaining documentation supporting the rate ...

2025-014 WIOA Cluster, Employment Service Cluster 17.258, 17.259, 17.278, 17.207, 17.801 Recommendation: The Department should review and enhance its procedures and internal controls regarding the calculation of its negotiated indirect cost rate and for maintaining documentation supporting the rate calculation. This documentation should be readily available for audit. Action taken in response to finding: Since the period under audit, the EOLWD has implemented improved processes to ensure that all documentation supporting the indirect cost rate calculation is maintained in a centralized and organized location. Beginning in FY26, supporting documentation, including calculation methodologies and related records, is retained in a designated repository to ensure it is readily accessible for audit and review. EOLWD has also clarified internal responsibilities and expectations regarding the preparation and retention of this documentation to promote consistency and continuity moving forward. The issues identified in the audit relate to prior periods when documentation practices were not standardized. EOLWD believes that the corrective actions implemented in FY26 address these concerns and will ensure ongoing compliance with documentation and audit requirements. Name(s) of the contact person(s) responsible for corrective action: Finance: Vina Yung, Sarah Shannon Planned completion date for corrective action plan: Completed last year - 12/31/2025

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Finding 1214102 (2025-013)

Material Weakness 2025

Commonwealth of Massachusetts

MA

Special Tests & Provisions Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

2025-013 Unemployment Insurance - Assistance Listing No. 17.225 Recommendation: The Department should perform staff training and strengthen its procedures and controls to ensure overpayments are identified, recorded, and recovered in a timely manner and in full compliance with federal requirements. ...

2025-013 Unemployment Insurance - Assistance Listing No. 17.225 Recommendation: The Department should perform staff training and strengthen its procedures and controls to ensure overpayments are identified, recorded, and recovered in a timely manner and in full compliance with federal requirements. Action taken in response to finding: In response to this finding, we have worked with our developers of the EMT system to investigate some of the issues which arose. This review determined that some of the erroneous data was the result of conversion issues when converting UI Online data (the prior unemployment system of record) to the current system, EMT. Developers are working to identify any areas that may require technical fixes. However, as of May of 2026, all new claims filed for unemployment benefits will be made in the EMT system, therefore the reliance on utilizing converted data will lessen as time goes on. In response to discrepancies that arose due to staff errors, all adjudication staff will receive training on fault/fraud issues which will cover the penalties against the claimant associated with each finding. Additionally, the Department is updating its Adjudication Handbook. This handbook provides detailed instruction on all adjudication matters and the applicable legal citations for decision rendered. This handbook will be reviewed by all staff who adjudicate cases. Name(s) of the contact person(s) responsible for corrective action: Josh Nussey, Acting Director of Program Integrity Planned completion date for corrective action plan: 12/31/2026

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Finding 1214100 (2025-012)

Material Weakness 2025

Commonwealth of Massachusetts

MA

Special Tests & Provisions Eligibility Reporting § 200.303

2025-012 Unemployment Insurance - Assistance Listing No. 17.225 Recommendation: We recommend the Department complete implementation of its corrective action plan from the prior year. We recommend the Department review and enhance procedures and controls to ensure that RESEA program requirements are ...

2025-012 Unemployment Insurance - Assistance Listing No. 17.225 Recommendation: We recommend the Department complete implementation of its corrective action plan from the prior year. We recommend the Department review and enhance procedures and controls to ensure that RESEA program requirements are met. We further recommend the Department develop a formal process to review quarterly performance reports for accuracy prior to submission. Action taken in response to finding: In order to resolve this finding, the Department is in the process of creating a new policy and procedure to ensure reports are reviewed prior to submission via the federal reporting system. The policy and procedures will state the process involved in getting report information, review of information, notification to manager, and submittal through the federal reporting system. MDUA has completed a review of policies and procedures. This will be a new effort at formalizing a policy which will go through agency review prior to enactment. MDUA has established an informal policy for staff to follow which speaks to the intent of having a formalized policy. The new policy and procedure will detail the responsibilities of staff who are involved with retrieving the initial information for the report from our UI administrative system, review of information to ensure federal reporting system requirements and comparison to past reports, notification to direct manager that the review was completed, and submittal through the federal reporting system. Name(s) of the contact person(s) responsible for corrective action: John Saulnier, Director of Benefit Performance Planned completion date for corrective action plan: May 1st, 2026

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Finding 1214098 (2025-011)

Material Weakness 2025

Commonwealth of Massachusetts

MA

Special Tests & Provisions Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

2025-011 Unemployment Insurance - Assistance Listing No. 17.225 Recommendation: We recommend the Department complete implementation of its corrective action plan from the prior year. We recommend the Department review and enhance procedures and controls to ensure that BAM case investigations are com...

2025-011 Unemployment Insurance - Assistance Listing No. 17.225 Recommendation: We recommend the Department complete implementation of its corrective action plan from the prior year. We recommend the Department review and enhance procedures and controls to ensure that BAM case investigations are completed timely in accordance with the time limits established in the ET Handbook No. 395. Action taken in response to finding: BAM staff have begun utilizing a new case management system within the modernized EMT system. This has reduced the number of screen shots necessary to develop a case. BAM investigators will continue receiving training on system usage and how to optimize day to day operations through weekly training sessions and the ability to schedule one on one training sessions with the BAM supervisor each week. BAM management continues to work with the EMT project to submit tickets for BAM program remediation while it continues to wait on required programming from pre-go live. Two BAM Investigators are training while waiting for the additional hiring to be approved. An improvement in the system is that BAM management is now in control of the number of cases being sampled. This will allow modification of the weekly sampling to allow change when needed such as an increase in case sampling if a case had to be discarded. Name(s) of the contact person(s) responsible for corrective action: Susan Saulnier Director of UI Performs Planned completion date for corrective action plan: 10/31/2026

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Finding 1214096 (2025-010)

Material Weakness 2025

Commonwealth of Massachusetts

MA

Reporting Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

2025-010 Unemployment Insurance - Assistance Listing No. 17.225 Recommendation: The Department should review its procedures to ensure that ETA 9130 reports are accurate and agree with supporting documentation. We further recommend that internal controls are enhanced to ensure that reports are review...

2025-010 Unemployment Insurance - Assistance Listing No. 17.225 Recommendation: The Department should review its procedures to ensure that ETA 9130 reports are accurate and agree with supporting documentation. We further recommend that internal controls are enhanced to ensure that reports are reviewed for accuracy prior to submission. Action taken in response to finding: ETA 9130 reports are jointly reviewed by Finance and program staff before submission and certification. Supporting documentations are cross-checked for accuracy and completeness, and all relevant files are maintained in a centralized, shared folder to ensure transparency and accountability. This multi-layered review and documentation process has been incorporated into a standard quarterly reporting procedures to prevent future discrepancies and ensure federal reporting integrity. New internal controls and procedures were established 8/30/2025, in which this audit has not reviewed yet. Name(s) of the contact person(s) responsible for corrective action: Finance: Sarah Shannon, Ken Luke, Vina Yung, DUA: Mark Costello Planned completion date for corrective action plan: Already completed – staff trained and provided with new SOP on 8/30/2025.

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Finding 1214094 (2025-009)

Material Weakness 2025

Commonwealth of Massachusetts

MA

Reporting Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

2025-009 Unemployment Insurance - Assistance Listing No. 17.225 Recommendation: The Department should review and update its reporting procedures and controls to ensure that ETA 9052 - Nonmonetary Determination Time Lapse Detection reports are submitted timely and that copies of report submissions ar...

2025-009 Unemployment Insurance - Assistance Listing No. 17.225 Recommendation: The Department should review and update its reporting procedures and controls to ensure that ETA 9052 - Nonmonetary Determination Time Lapse Detection reports are submitted timely and that copies of report submissions are maintained and are readily available for audit. Reports should be reviewed for accuracy prior to submission. Action taken in response to finding: A staff member has been identified as the owner of UIR 9052. Staff have been trained in the submission of 9052 in both SUN and the new UIRS system that has replaced the SUN. Master list of report owners has been updated to reflect accurate ownership. Master List Report owner will notify 9052 owner in advance that report is coming due. The department will make sure that reports are reviewed for accuracy prior to submission and copies of report submissions are maintained. Name(s) of the contact person(s) responsible for corrective action: John Saulnier / Director of Benefits Planned completion date for corrective action plan: Corrected. The 9052 is now being submitted timely.

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Finding 1214092 (2025-008)

Material Weakness 2025

Commonwealth of Massachusetts

MA

Matching / Level of Effort / Earmarking Reporting Significant Deficiency § 200.303

2025-008 Unemployment Insurance - Assistance Listing No. 17.225 Recommendation: The Department should review and update its reporting procedures and controls to ensure that ETA 2208A reports are accurate and agree with supporting documentation. We further recommend that internal controls are enhance...

2025-008 Unemployment Insurance - Assistance Listing No. 17.225 Recommendation: The Department should review and update its reporting procedures and controls to ensure that ETA 2208A reports are accurate and agree with supporting documentation. We further recommend that internal controls are enhanced to ensure that reports are reviewed for accuracy prior to submission. Action taken in response to finding: Finance has implemented a formal review and reconciliation process requiring reported totals to be verified against supporting source documentation before submission, standardized and locked required workbook formulas, and establish a pre-submission checklist to document review. Written procedures will be updated to formalize these control enhancements and ensure continued compliance. Name(s) of the contact person(s) responsible for corrective action: Finance: Vina Yung, Anna Yong Planned completion date for corrective action plan: 6/30/2026

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Finding 1214090 (2025-007)

Material Weakness 2025

Commonwealth of Massachusetts

MA

Cash Management Material Weakness Reporting § 200.303

2025-007 Unemployment Insurance - Assistance Listing No. 17.225 Recommendation: The Department should review its procedures to ensure that ETA 2112 reports are accurate and agree with supporting documentation. We further recommend that internal controls are enhanced to ensure that reports are review...

2025-007 Unemployment Insurance - Assistance Listing No. 17.225 Recommendation: The Department should review its procedures to ensure that ETA 2112 reports are accurate and agree with supporting documentation. We further recommend that internal controls are enhanced to ensure that reports are reviewed for accuracy prior to submission. Action taken in response to finding: Action was taken to address the issue prior to audit findings, and we do not anticipate similar situations to exist now that we have EMT generates the ETA 2112. Also, we have internal control for both preparer and approver to review each line item with the supporting documents. Name(s) of the contact person(s) responsible for corrective action: Finance: Messay Araya, Anna Yong Planned completion date for corrective action plan: 6/30/2026

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Finding 1214088 (2025-006)

Material Weakness 2025

Commonwealth of Massachusetts

MA

Reporting Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

2025-006 Employment Service Cluster - Assistance Listing No. 17.207, 17.801 Recommendation: The Department should review its procedures to ensure that ETA 9130 reports are accurate and agree with supporting documentation. We further recommend that internal controls are enhanced to ensure that report...

2025-006 Employment Service Cluster - Assistance Listing No. 17.207, 17.801 Recommendation: The Department should review its procedures to ensure that ETA 9130 reports are accurate and agree with supporting documentation. We further recommend that internal controls are enhanced to ensure that reports are reviewed for accuracy prior to submission. Action taken in response to finding: ETA 9130 reports are jointly reviewed by Finance and program staff before submission and certification. Supporting documentations are cross-checked for accuracy and completeness, and all relevant files are maintained in a centralized, shared folder to ensure transparency and accountability. This multi-layered review and documentation process has been incorporated into a standard quarterly reporting procedures to prevent future discrepancies and ensure federal reporting integrity. New internal controls and procedures were established 8/30/2025, in which this audit has not reviewed yet. Name(s) of the contact person(s) responsible for corrective action: Finance: Sarah Shannon, Ken Luke, Vina Yung, DCS: Dave Manning Planned completion date for corrective action plan: Already completed – staff trained and provided with new SOP on 8/30/2025.

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Finding 1214086 (2025-005)

Material Weakness 2025

Commonwealth of Massachusetts

MA

Allowable Costs / Cost Principles § 200.303 § 200.430

2025-005 Employment Service Cluster - Assistance Listing No. 17.207, 17.801 Recommendation: The Department should update its procedures and controls and perform additional training over time and effort reporting to ensure that payroll costs charged to the program are based on actual time and effort ...

2025-005 Employment Service Cluster - Assistance Listing No. 17.207, 17.801 Recommendation: The Department should update its procedures and controls and perform additional training over time and effort reporting to ensure that payroll costs charged to the program are based on actual time and effort and a combination code that is allowable under the program. The Department should not seek federal reimbursement unless it can substantiate that the time and effort was dedicated to the federal program. Action taken in response to finding: Ongoing training is provided for new staff to ensure they correctly enter combo codes that align with the activities performed. To strengthen oversight, a custom report has been developed to identify employees with missing combo codes each week, allowing Finance staff to proactively follow up and ensure proper time charging weekly. Finance will continue to enhance the custom report to ensure all paid TRCs are linked and properly monitor any missing combo codes in timesheets each pay period. Any new additional pay entered by Human Resource in the HR/CMS system, Human Resource will notify Finance to ensure a proper combo code or an appropriate account is assigned. Finance will collaborate with departments throughout the fiscal year to update labor distribution profiles, ensuring that employees are defaulted to the correct funding sources in accordance with approved labor distribution profiles for accurate and efficient time reporting. A custom report has been developed for managers and time approvers to validate that employee labor distribution profiles are regularly confirmed and updated in accordance with weekly time and effort. To further strengthen internal control preventive measures Finance will be monitoring variances between charged payroll data in relation to the labor distribution profiles to identify any large variances that need to be addressed. Name(s) of the contact person(s) responsible for corrective action: Finance: Anna Yong, Vina Yung, Sarah Shannon, Mai Giang, Stephanie Wong, HR/Payroll: Cheryl Stanton, Linda Stevens, DCS: David Manning, Beth Goguen Planned completion date for corrective action plan: 6/30/2026

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Finding 1214084 (2025-004)

Material Weakness 2025

Commonwealth of Massachusetts

MA

Reporting § 200.303

2025-004 Employment Service Cluster - Assistance Listing No. 17.207, 17.801 Recommendation: We recommend the Department complete implementation of its corrective action plan from the prior year. Procedures and internal controls over reporting should be sufficient to ensure that reports are accurate ...

2025-004 Employment Service Cluster - Assistance Listing No. 17.207, 17.801 Recommendation: We recommend the Department complete implementation of its corrective action plan from the prior year. Procedures and internal controls over reporting should be sufficient to ensure that reports are accurate and agree with supporting documentation. Action taken in response to finding: Massachusetts has implemented its corrective action plan by ensuring correspondence detailing changes to the Expenditure Detail Reports (EDR) has been documented and maintained on a “Notes” tab on the EDR form. Additionally, to address the difference in activity categories between the EDR and the finance expense report and to improve the reporting process, two new program phase codes have been added to the finance expense report to identify spending for Program Management & Administration and the JVSG Incentive Awards. The finance report provides details based on cash-basis accounting and is utilized as source documentation for the EDR, which is based on accrual reporting. As such variances may occur due to normal timing differences such as accrued costs incurred but paid in a subsequent period. Name(s) of the contact person(s) responsible for corrective action: Finance: Sarah Shannon, Vina Yung, DCS: Sacha Stadhard, Christopher Mills Planned completion date for corrective action plan: Has been implemented as of 12/31/2025 and it is an on-going process.

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Finding 1214082 (2025-003)

Material Weakness 2025

Commonwealth of Massachusetts

MA

Procurement, Suspension & Debarment Subrecipient Monitoring Material Weakness § 200.303

2025-003 Employment Service Cluster - Assistance Listing No. 17.207, 17.801 Recommendation: We recommend the Department complete implementation of its corrective action plan from the prior year. The Department should implement procedures and internal controls to ensure that all required subawards an...

2025-003 Employment Service Cluster - Assistance Listing No. 17.207, 17.801 Recommendation: We recommend the Department complete implementation of its corrective action plan from the prior year. The Department should implement procedures and internal controls to ensure that all required subawards and subaward modifications are reported no later than the end of the month following the month of issuance. Action taken in response to finding: Reporting under FFATA is triggered when the department and the local areas agree on budgets — i.e., at the point when the state forms an official obligation amount. This change is meant to more closely align with FFATA guidance which specifies that “you must report each obligating action … no later than the end of the month following the month in which the obligation was made.” U.S. Election Assistance Commission. Importantly, the guidance states: “Only report on subaward obligations. Do not report individual payments made to subrecipients.” Previously, FFATA was triggered when an encumbrance was recorded. By aligning FFATA reporting with the point at which the state formally obligates funds through approved local budgets, rather than when encumbrances are recorded, the process more accurately reflects the definition of an obligating action and strengthens overall compliance with FFATA requirements. Ongoing monitoring will continue to ensure reporting remains timely and accurate, with periodic reviews conducted to assess performance and identify any needed updates to the SOP. These revisions were fully implemented by 09/30/2025. New internal controls and procedures were established 9/30/2025, in which this audit has not reviewed yet. Name(s) of the contact person(s) responsible for corrective action: Finance: Sarah Shannon, Sam Potel Planned completion date for corrective action plan: Already completed – staff trained and provided with new SOP on 9/30/2025.

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Finding 1214080 (2025-002)

Material Weakness 2025

Commonwealth of Massachusetts

MA

Procurement, Suspension & Debarment Subrecipient Monitoring Material Weakness § 200.303

2025-002 Child Nutrition Cluster - Assistance Listing No. 10.555, 10.582 Recommendation: We recommend the Department develop procedures and internal controls to ensure that all required subawards are reported timely and accurately to SAM.gov no later than the end of the month following the month of ...

2025-002 Child Nutrition Cluster - Assistance Listing No. 10.555, 10.582 Recommendation: We recommend the Department develop procedures and internal controls to ensure that all required subawards are reported timely and accurately to SAM.gov no later than the end of the month following the month of issuance of each subaward. If the Department is unable to complete reporting in SAM.gov, it should follow up with the Service Desk and consult with their federal award contacts for assistance and guidance. Action taken in response to finding: The Department is reviewing and updating internal procedures to ensure all required subawards are reported timely and accurately in SAM.gov. While there have been some technical challenges with SAM.gov reporting, the Department is actively coordinating with U.S. Department of Agriculture contacts to resolve issues and ensure compliance and maintaining a record of each outreach attempt. Staff responsibilities and monitoring procedures are being strengthened to support accurate reporting. Name(s) of the contact person(s) responsible for corrective action: Julia Jou, Budget Director, Rob Curtin, Deputy Commissioner, Erica Gonzales, Associate Commissioner Data & Accountability, Rob Leshin, Director, Food and Nutrition Programs Joseph Valchuis, Audit Supervisor Planned completion date for corrective action plan: April 15, 2026

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Finding 1214077 (2025-001)

Material Weakness 2025

Ellery Court Senior Housing Development Fund Corporation

NY

Eligibility HUD Housing Programs Subrecipient Monitoring

Provided training to staff on HUD EIV requirements and documentation standards. Updated the tenant file checklist to include a mandatory EIV report verification step:  Conducted an internal audit of all tenant files to identify any additional missing or late EIV reports.  Implement a quarterly com...

Provided training to staff on HUD EIV requirements and documentation standards. Updated the tenant file checklist to include a mandatory EIV report verification step:  Conducted an internal audit of all tenant files to identify any additional missing or late EIV reports.  Implement a quarterly compliance review process to ensure ongoing adherence to EIV requirements.

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Finding 1214075 (2025-034)

Material Weakness 2025

State of Georgia/state Accounting Office-Ein Noted

GA

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

GVRA has engaged an accounting firm to support the agency in continued efforts to obtain a formalize approval from SSA and RSA on the Cost Allocation Plan (CAP) and Indirect Cost Rate Proposal (ICRP), in compliance with applicable federal regulatory requirements. Accounting firm will: • Assist GVRA ...

GVRA has engaged an accounting firm to support the agency in continued efforts to obtain a formalize approval from SSA and RSA on the Cost Allocation Plan (CAP) and Indirect Cost Rate Proposal (ICRP), in compliance with applicable federal regulatory requirements. Accounting firm will: • Assist GVRA in developing the Cost Allocation Plan and Indirect Cost Rate Proposal. • Provide training to GVRA executive leadership, management, and fiscal staff on the approved cost allocation methodology, policy requirements, and implementation procedures. Upon approval from cognizant agencies, GVRA will: • Incorporate the policy into GVRA’s official policy manuals. • Conduct policy review and updates of the Cost Allocation Plan and related policies to ensure continued compliance and accuracy. This corrective action will strengthen internal controls and ensure ongoing compliance with federal cost principles.

View Audit 400877

Finding 1214074 (2025-024)

Material Weakness 2025

State of Georgia/state Accounting Office-Ein Noted

GA

Matching / Level of Effort / Earmarking Subrecipient Monitoring § 200.303

The Agency recognizes the importance of compliance with earmarking requirements during the effective award period and will continue to ensure that expenditures are aligned with statutory and regulatory requirements throughout the active life of federal awards, including in circumstances involving ea...

The Agency recognizes the importance of compliance with earmarking requirements during the effective award period and will continue to ensure that expenditures are aligned with statutory and regulatory requirements throughout the active life of federal awards, including in circumstances involving early termination. OBF is committed to assisting program staff in strengthening programmatic oversight and supporting compliance by enhancing data accessibility and analytical capabilities. To that end, OBF will continue to provide program staff with the necessary analytical tools and customized reporting solutions to facilitate accurate and timely programmatic reporting. This includes seamless, on-demand access to relevant financial and performance data through the implementation and ongoing maintenance of Power BI dashboards. These dashboards are designed to improve transparency, support monitoring of grant requirements, and enable data-driven decision-making by stakeholders outside of finance. In addition, OBF will provide supplemental technical guidance and training, as needed, to ensure program staff fully understand reporting requirements and are equipped to effectively utilize available reporting tools. Management believes these measures further strengthen internal controls, enhance compliance monitoring, and promote continued alignment with applicable federal requirements.

View Audit 400877

Finding 1214073 (2025-022)

Material Weakness 2025

State of Georgia/state Accounting Office-Ein Noted

GA

Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303

The subawards and subaward modifications that were not reported in a timely manner were identified after the applicable due date through enhancements to the Federal Funding Accountability and Transparency Act of 2006 (FFATA) reporting infrastructure. The modified FFATA reporting system successfully ...

The subawards and subaward modifications that were not reported in a timely manner were identified after the applicable due date through enhancements to the Federal Funding Accountability and Transparency Act of 2006 (FFATA) reporting infrastructure. The modified FFATA reporting system successfully identified and remediated reporting gaps that were not detected under the previous reporting framework. Specifically, certain subawards or modifications were identified after the end of the month following the month in which the subaward obligation occurred. Upon identification, the agency prioritized ensuring that all required FFATA submissions were complete and accurately reported. The current FFATA reporting infrastructure now incorporates enhanced monitoring and oversight mechanisms, including the implementation of Key Performance Indicators (KPIs) such as FFATA due date, days until FFATA report due, FFATA reporting status, and FFATA prepared by. These enhancements provide increased visibility, accountability, and proactive tracking of reporting deadlines. Since the full implementation of the updated FFATA reporting controls, all required submissions have been completed accurately and within the prescribed timeframes. Completion Timeline: The agency considers this corrective action complete, and the control environment strengthened to prevent recurrence.

View Audit 400877

Finding 1214066 (2025-023)

Material Weakness 2025

State of Georgia/state Accounting Office-Ein Noted

GA

Matching / Level of Effort / Earmarking Subrecipient Monitoring § 200.303

The Agency recognizes the importance of compliance with earmarking requirements during the effective award period and will continue to ensure that expenditures are aligned with statutory and regulatory requirements throughout the active life of federal awards. The Office of Budget and Finance (OBF) ...

The Agency recognizes the importance of compliance with earmarking requirements during the effective award period and will continue to ensure that expenditures are aligned with statutory and regulatory requirements throughout the active life of federal awards. The Office of Budget and Finance (OBF) is committed to assisting program staff in strengthening programmatic oversight and supporting compliance by enhancing data accessibility and analytical capabilities. To that end, OBF will continue to provide program staff with the necessary analytical tools and customized reporting solutions to facilitate accurate and timely programmatic reporting. This includes seamless, on-demand access to relevant financial and performance data through the implementation and ongoing maintenance of Power BI dashboards. These dashboards are designed to improve transparency, support monitoring of grant requirements, and enable data-driven decision-making by stakeholders outside of finance. In addition, OBF will provide supplemental technical guidance and training, as needed, to ensure program staff fully understand reporting requirements and are equipped to effectively utilize available reporting tools.

View Audit 400877

Corrective Action Plans

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