Corrective Action Plans

Finding 1200734 (2025-023)

Material Weakness 2025

LA

Dear Mr. Waguespack: The Louisiana Department of Health (LDH) acknowledges receipt of correspondence from the Louisiana Legislative Auditor (LLA) dated December 8, 2025, titled Noncompliance with Fee-for-Service Provider Revalidation Requirements. LDH appreciates the opportunity to provide this resp...

Dear Mr. Waguespack: The Louisiana Department of Health (LDH) acknowledges receipt of correspondence from the Louisiana Legislative Auditor (LLA) dated December 8, 2025, titled Noncompliance with Fee-for-Service Provider Revalidation Requirements. LDH appreciates the opportunity to provide this response to your office's findings. Finding: Noncompliance with Fee-for-Service Provider Revalidation Requirements. Recommendation: LDH should adequately monitor the contractor to ensure all providers are revalidated within the required timeframe in accordance with federal regulations. LDH Response: LDH concurs with the LLA's finding that 134 Durable Medical Equipment (DME) providers due for their three (3) year revalidation were not completed within the allowable timeframe and three (3) other providers due for their five (5) year revalidation were not completed timely. Corrective Action: In 2024, LDH identified upcoming revalidations for DME providers, who are required to revalidate every three years. To ensure timely execution, LDH established weekly "Revalidation" meetings with Gainwell Technologies, LDH's contracted vendor, and documented the process. Revalidation notifications were scheduled for distribution at the end of 2024 to give providers adequate time to meet their deadlines. However, Gainwell Technologies failed to complete the necessary system updates to support the revalidation effort. As a result, the notifications were not sent as committed. This failure caused direct delays in distributing revalidation invitation letters and emails. On December 30th, LDH also identified additional overdue revalidations that Gainwell had not addressed and immediately escalated the issue. The revalidation process has since been completed and LDH provided updated records reflecting the date providers completed revalidation after June 30, 2025, or were deactivated. LDH directed Gainwell Technologies to submit a Corrective Action Plan (CAP) outlining how they will prevent a recurrence of this failure. As part of the corrective action plan, Gainwell Technologies created a standard operating procedure (SOP) for the provider enrollment unit to ensure revalidation letters and emails are issued to all providers due for revalidation. The SOP includes quality checks to ensure appropriate tasks are completed by the appropriate team members regarding activities. Additionally, LDH is considering all appropriate options against Gainwell Technologies, including CAPs and potential fines. You may contact Seth Gold, Medicaid Executive Director, at (225) 219-7810 or via e-mail at Seth.Gold@la.gov or Brandon Bueche, Medicaid Deputy Director, at (225) 384-0460 or via e-mail at Brandon.Bueche@.la.gov with any questions about this matter.

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Finding 1200733 (2025-021)

Material Weakness 2025

State of Louisiana

LA

Dear Mr. Waguespack: The Louisiana Department of Health (LDH) acknowledges receipt of correspondence from the Louisiana Legislative Auditor (LLA) dated October 22, 2025 titled Noncompliance with Disproportionate Share Hospital Payments. LDH appreciates the opportunity to provide this response to you...

Dear Mr. Waguespack: The Louisiana Department of Health (LDH) acknowledges receipt of correspondence from the Louisiana Legislative Auditor (LLA) dated October 22, 2025 titled Noncompliance with Disproportionate Share Hospital Payments. LDH appreciates the opportunity to provide this response to your office's findings. Finding: Noncompliance with Disproportionate Share Hospital Payments Recommendation: LDH should ensure an adequate review of their calculations to verify that all federal payments are included to prevent the department from exceeding the federal DSH allotment in the future. LDH Response: LDH concurs with the finding of noncompliance with 2020 disproportionate share hospital payments as the global DSH allotment was exceeded for that FFY. Corrective Action: The department will recoup funds from the facility that was overpaid and return the FFP portion of that overpayment to CMS. The Department will also return the FFP portion of the remaining amount that was payments in excess of the global allotment to CMS. We have implemented a process to review the available DSH balances to verify that all federal payments are included to prevent the department from exceeding the federal DSH allotment. Any adjustments resulting from potential overpayments which would increase the available DSH state allotment cap shall not be recognized until recoupment is finalized and complete. You may contact Drew Maranto, LDH Undersecretary at (225) 219-7810 or via e-mail at Drew.Maranto@la.gov or Jackie Cummings, Medicaid Program Manager 4 at (225) 342-7505 or via e-mail at Jackie.Cummings2@la.gov with any questions about this matter.

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Finding 1200732 (2025-019)

Material Weakness 2025

State of Louisiana

LA

Dear Mr. Waguespack: The Louisiana Department of Health (LDH) acknowledges receipt of correspondence from the Louisiana Legislative Auditor (LLA) dated January 27, 2026, titled Inadequate Internal Controls over Eligibility Determinations. LDH appreciates the opportunity to provide this response to y...

Dear Mr. Waguespack: The Louisiana Department of Health (LDH) acknowledges receipt of correspondence from the Louisiana Legislative Auditor (LLA) dated January 27, 2026, titled Inadequate Internal Controls over Eligibility Determinations. LDH appreciates the opportunity to provide this response to your office's findings. Finding: Inadequate Internal Controls over Eligibility Determinations. Recommendation: LDH should ensure its employees follow procedures and federal regulations relating to eligibility determinations and redeterminations in the Medicaid and CHIP programs to ensure the case records support the eligibility decisions. LDH Response: LDH concurs in part with LLA's finding of inadequate internal controls over eligibility determinations. For the Medicaid finding noted as not accurately processing SNAP renewal, LDH concurs in part. The eligibility determination system accurately processed the SNAP renewal as an administrative renewal. The issue identified was limited to inaccurate automated case note language. This documentation issue did not impact eligibility outcomes and was corrected effective December 2024. For the 12 Medicaid findings noted as not obtaining required determinations prior to renewing eligibility, LDH concurs. • Seven (7) findings occurred during the effective period of the $0 income waiver under Section 1902(e) (14) (A), and the system applied waiver-approved income verification logic consistent with LDH policy. Following the expiration of the waiver, system logic was updated and completed in August 2025 to align with post-waiver renewal requirements. • For one (1) finding verification was provided but not reflected in the case record due to analyst execution. This was discussed with the analyst on October 15, 2025. • For three (3) findings the system retained existing resource information when external asset verification interfaces returned no results, consistent with LDH Asset Verification System (AVS) policy and procedures designed to prevent the introduction of unverifiable data. System logic was updated and completed in October 2025. • For one (1) finding the system renewed eligibility consistent with existing renewal processing rules. LDH has reviewed this scenario and will evaluate whether additional procedural or system safeguards are appropriate. For the seven (7) Medicaid findings noted as not obtaining required determinations prior to renewing eligibility which resulted in beneficiaries being invalidly enrolled, LDH concurs in part. • Six (6) findings resulted in case analysts failing to properly follow policy/procedures prior to determining or continuing eligibility. Ongoing training is in progress. • For the finding noted as not documenting school enrollment for the beneficiary over age 18 on Children's Choice Waiver, LDH does not concur. School enrollment is not a condition of eligibility; therefore, LDH is not required to not verify school enrollment when determining eligibility. Children's Choice and Support Waiver programs are initiated by the Office of Citizen's with Developmental Disabilities (OCDD) who determines the appropriate waiver program for the beneficiary. (OCDD) notifies LDH of the necessary action or updates to the service type when a transition of waiver services takes place. For the three (3) CHIP findings noted as not accurately processing SNAP renewal, LDH concurs in part. The eligibility determination system accurately processed the SNAP renewal as an administrative renewal. The issue identified was limited to inaccurate automated case note language. This documentation issue did not impact eligibility outcomes and was corrected effective December 2024. For the 10 CHIP findings noted as not obtaining required documentation prior to renewing eligibility, LDH concurs. • Seven (7) findings occurred during the effective period of the $0 income waiver under Section 1902(e) (14) (A), and the system applied waiver-approved income verification logic consistent with LDH policy. Following expiration of the waiver, system logic was updated in July 2025 to align with post-waiver renewal requirements. • Two (2) findings, the system completed renewals consistent with interface results available at the time of processing. The case record reflected unemployment income; however, interfaces returned no income found. • One (1) finding the analyst did not verify reported income in adherence with policy and procedures. For the 10 CHIP findings noted as not obtaining required documentation prior to renewing eligibility which resulted in beneficiaries being invalidly enrolled, LDH concurs in part. • Two (2) findings, the system completed renewals consistent with interface results available at the time of processing. The case record reflected unemployment income; however, interfaces returned no income found. This system enhancement is in progress. • Four (4) findings the analyst did not obtain required income verification in adherence with policy and procedures. Training is ongoing. • One (1) finding did not address unemployment income and household discrepancy. The system completed renewals consistent with interface results available at the time of processing. The case record reflected unemployment income; however, interfaces returned no income found. The clerical staff failed to remove a beneficiary from the household during data entry. Training is ongoing. • One (1) finding occurred during the effective period of the $0 income waiver under Section 1902(e) (14) (A), and the system applied waiver-approved income verification logic consistent with LDH policy. Following expiration of the waiver, system logic was updated in August 2025 to align with post-waiver renewal requirements. • For the two (2) findings noted as not counting all active income found in interfaces, LDH does not concur. The eligibility determination system utilized the highest income reported by LWC at the time of case processing, consistent with LDH policy. Corrective Actions: LDH will continue to utilize findings from internal case reviews, appeal outcomes, external audit, and other monitoring activities to perform root cause analysis. Where appropriate, LDH has requested system enhancements and will continue to assess system functionality in coordination with Policy, Procedures, and Legal to ensure alignment with program requirements and program integrity. To reduce recurrence of identified case processing trends, LDH will continue to: • Assess and update policy and procedures as needed. Provide refresher training for staff. • Conduct internal supervisory and quality assurance reviews. These actions are intended to strengthen internal controls while maintaining alignment with federal and state requirements. You may contact Seth Gold, Medicaid Director at (225) 219-7810 or via e-mail at Seth.Gold@la.gov or Camille Conaway, Executive Director Economic Independence via e-mail at Camille.Conaway@la.gov with any questions about this matter.

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Finding 1200731 (2025-018)

Material Weakness 2025

State of Louisiana

LA

Dear Mr. Waguespack: The Louisiana Department of Health (LDH) acknowledges receipt of correspondence from the Louisiana Legislative Auditor (LLA) dated January 5, 2026, titled Inadequate Controls over Billing for Behavioral Health Services. LDH appreciates the opportunity to provide this response to...

Dear Mr. Waguespack: The Louisiana Department of Health (LDH) acknowledges receipt of correspondence from the Louisiana Legislative Auditor (LLA) dated January 5, 2026, titled Inadequate Controls over Billing for Behavioral Health Services. LDH appreciates the opportunity to provide this response to your office's findings. Finding: Inadequate Controls over Billing for Behavioral Health Services Recommendation: LDH management should ensure that agency personnel are adequately monitoring the EQR contract and that the proper validations are being conducted to ensure encounters are coded correctly. LDH Response: LDH concurs with the recommendation. Corrective Action Plan: The Office of Behavioral Health and Medicaid staff shall develop additional standards required by CMS for the EQR contractor to ensure the issues raised by the LLA are addressed. Additionally, Internal Audit staff will review the standards and provide an independent evaluation of the adequacy of the solution. You may contact Holly Howat, OBH Interim Assistant Secretary, by telephone at (225) 342-1435 or email at Holly.Howat@la.gov with any questions concerning this matter.

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Finding 1200730 (2025-004)

Material Weakness 2025

State of Louisiana

LA

Dear Mr. Waguespack, Please find below the University's management response to the audit finding titled "Control Weakness and Noncompliance with Special Tests and Provisions Requirements." Management Response The University concurs with the finding. This letter is provided in response to the audit f...

Dear Mr. Waguespack, Please find below the University's management response to the audit finding titled "Control Weakness and Noncompliance with Special Tests and Provisions Requirements." Management Response The University concurs with the finding. This letter is provided in response to the audit finding related to Special Tests and Provisions requirements. The audit identified that UL Lafayette did not have adequately designed controls to ensure compliance with federal award requirements related to key personnel effort. Specifically, the auditors noted that key personnel were not involved in the project at the level required by the federal award or proposal submissions, prior approvals for changes in effort were not obtained from the federal grantor agency or pass-through entity when required, and time and effort certifications for key personnel were not sufficient to certify that the required level of effort was met. Additionally, the audit determined that UL Lafayette did not have adequate controls in place to monitor key personnel effort on a timely basis to ensure required effort levels were maintained and that prior written approvals were obtained when applicable. The auditors further noted that annual and semiannual certifications alone were not sufficient to timely detect changes in key personnel effort that would require prior approval. Our primary focus has been on ensuring that salaries charged to sponsored projects were accurate and did not exceed approved budgetary limits as required by sponsors. We are actively developing and implementing a documented procedure for effort reporting to address this issue going forward. Corrective Action Plan Dr. Kumer Das, the Interim Vice President of Research, Innovation and Economic Development will be responsible with overseeing all corrective actions to address this finding and strengthen compliance with federal key personnel effort monitoring requirements. The following corrective actions have been implemented or are in progress: 1. Realignment of Research Administration Functions • Effective May 29, 2025, pre-award and post-award operations were consolidated under the Vice President for Research. This structural realignment strengthens oversight, improves coordination of proposal commitments and post-award monitoring, and enhances accountability across the grant lifecycle. 2. Comprehensive Business Process Mapping • The University engaged Ellucian to conduct a comprehensive review of end-to-end grant management workflows. This process mapping initiative evaluated roles, responsibilities, and control points related to proposal development, award setup, payroll distribution, and effort certification. Knowledge transfer sessions have been scheduled for March and April 2026 with Ellucian consultants to support implementation of revised procedures and internal control enhancements. 3. Effort Tracking, Reconciliation, and Certification To address the identified deficiencies, the University is implementing the following control enhancements: • Pre-Award Commitment Review: At the time of proposal submission, Pre-Award staff will review and document key personnel effort commitments to ensure proposed effort is reasonable, attainable, and aligned with institutional responsibilities. A centralized key personnel commitment tracker is under development and will be implemented by March 31, 2026. • Award-Level Commitment Reconciliation: Upon receipt of an award, the tracker will be updated to reflect sponsor-approved effort commitments. This will establish the baseline for post-award monitoring. • Quarterly or Semester-Based Effort Reviews: In addition to formal bi-annual certification cycles, the University will implement quarterly or semester-based internal effort reviews to provide timely identification of changes in key personnel commitment levels. The revised Standard Operating Procedure (SOP) will reflect this change. • Ongoing Monitoring and Payroll Reconciliation: Based on effort reviews, Post-Award will perform reconciliations of payroll charges and compare actual effort to committed effort levels. Variances will be reviewed with the Principal Investigator. Where reductions in effort exceed sponsor thresholds (e.g., greater than 25% reduction or disengagement exceeding three months), the Office of Research Administration and Compliance (ORAC) will determine whether prior approval or sponsor notification is required and will document the resolution. The University remains committed to making continuous improvements and appreciates your understanding of support as we address these challenges.

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Finding 1200729 (2025-003)

Material Weakness 2025

State of Louisiana

LA

Dear Mr. Waguespack, Thank you for the opportunity to respond to your office’s findings related to the Special Tests and Provisions Requirements. Louisiana State University Health Sciences Center in Shreveport (LSUHSC-S) has reviewed the issues identified by your staff. During this period, the insti...

Dear Mr. Waguespack, Thank you for the opportunity to respond to your office’s findings related to the Special Tests and Provisions Requirements. Louisiana State University Health Sciences Center in Shreveport (LSUHSC-S) has reviewed the issues identified by your staff. During this period, the institution was modernizing its Time & Effort framework via PeopleSoft, implementing revised PER (personnel change request) routing, and establishing a post-award monitoring process. LSUHSC-S concurs with your recommendations for addressing the finding. The timeliness issues identified in the key control have been addressed, and corrective actions have been implemented to ensure proper functioning going forward. Recommendation: Management should monitor changes in effort for key personnel and verify that prior written approval is obtained from the federal grantor for changes that exceed the thresholds set in federal regulations. Management should also ensure the Time & Effort monitoring forms are completed timely to ensure compliance with Special Tests & Provisions requirements. Response and Corrective Action Plan LSUHSC-S is continuing to strengthen the management, internal controls, and efficiency of sponsored programs management. We have now established our Managing Effort policy to clarify that cost share is required if committed effort is not being charged to a project budget for any reason. We also modified our Cayuse award routing to include the Budget Office and General Accounting if the award record indicates that there will be any institutional cost sharing. This process is now automated and will ensure the setup of cost share accounts is incorporated into the account setup process, where it was a separate and “after the fact” process previously. Additionally, LSUHSC-S will implement a PI Eligibility Policy preventing gratis faculty from serving as PIs in the future. Time & Effort Certifications: LSUHSC-S implemented the PeopleSoft Time & Effort certification system in January 2025, with quarterly certifications for biweekly employees and semiannual certifications for monthly employees. These certifications are the official after-the-fact documentation required by 2 CFR 200. Related institutional directives—AD 4.4 (Time & Effort Reporting Certification) and AD 4.10 (Effort Commitment – Managing Effort on Sponsored Projects)—were revised with an effective date of July 1, 2025, and accompanied by FAQs and distributed training/guidance to campus stakeholders. Importantly, each of the 8 exceptions for the key control had timely official PeopleSoft effort certifications. Quarterly Effort Monitoring Tool (Key Control): Quarterly Effort Monitoring spreadsheets are used as the key control for monitoring effort prior to certification. This quarterly review provides an essential, structured “point in time” checkpoint that allows PIs and departments to identify discrepancies early and correct them before the official PeopleSoft effort certification is finalized. The control issues identified during the audit period were attributable to early-stage implementation of new systems and processes. LSUHSC-S has taken corrective action in several areas, including automating the workflow via AdobeSign, assigning a dedicated staff member to monitor the process, and incorporating escalation procedures to ensure timely return of the monitoring tool. Per our Effort Commitment — Managing Effort policy, quarterly reviews are one monitoring tool among several, including monthly ledger reviews by departments, and PER reviews, where any effort reallocation routes to OSP Post Award for assessment of sponsor rules and prior-approval needs prior to approving the change institutionally. While these complimentary controls support the overall monitoring structure, they do not replace the Quarterly Effort Review Spreadsheet as the key control. Prior Approval Improvements: To strengthen compliance with 2 CFR 200.308, LSUHSC-S implemented the electronic InfoReady Change in Senior/Key Personnel Request on May 1, 2025, now the primary tool for routing prior-approval requests. Integration with PER3 ensures OSP Post Award can deny personnel changes until sponsor approval is obtained. Automated reminders began April 1, 2025. Name of Contacts Responsible for Action Plan: Ramey Benfield, Chief Financial Officer & Vice Chancellor for Finance and Administration Ashley Krukowski, Executive Director, Office for Sponsored Programs Valarie White, Director, Office for Sponsored Programs, Pre-Award Administration Tracy Calvert, Director, Office for Sponsored Programs, Post Award Administration Estimated Completion Date: June 30th, 2026 Conclusion LSUHSC-S considers that the implementation of the PeopleSoft effort certification system, revised effort and cost transfer directives, the InfoReady prior-approval workflow, and automation of the Quarterly Effort Monitoring tool will address the auditors’ concerns and provide a strong, sustainable compliance framework that will be further demonstrated in the next audit cycle. If you have any questions or require additional information, please contact me at 318-675-6327 or via email at ramey.benfield@lsuhs.edu.

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Finding 1200726 (2025-005)

Material Weakness 2025

State of Louisiana

LA

Dear Mr. Waguespack, Please find below the University's management response to the audit finding titled "Noncompliance with Subrecipient Monitoring Requirements". Management Response The University concurs with the finding. This letter is provided in response to the audit finding related to Subrecip...

Dear Mr. Waguespack, Please find below the University's management response to the audit finding titled "Noncompliance with Subrecipient Monitoring Requirements". Management Response The University concurs with the finding. This letter is provided in response to the audit finding related to Subrecipient Monitoring Compliance requirements. The audit identified that UL Lafayette did not adequately monitor subrecipients of the Research and Development (R&D) Cluster Programs. While the University has focused on established subrecipient monitoring procedures intended to address federal compliance requirements, we acknowledge that documentation supporting certain monitoring activities-specifically risk assessments, evidence of financial and performance report reviews, and elements required within select subaward agreements-was not consistently maintained or readily available. We are actively developing and implementing documented procedures to address this requirement going forward. Corrective Action Plan Dr. Kumer Das, the Interim Vice President of Research, Innovation and Economic Development will be responsible with overseeing all corrective actions to address this finding and strengthen compliance with federal subrecipient monitoring requirements. The following corrective actions have been implemented or are in progress: 1. Hiring of Subaward Coordinator • A dedicated Subaward Coordinator position was filled in October of 2025 to centralize responsibility for subrecipient monitoring, invoice review, and compliance oversight for FY26 going forward. 2. Enhanced Monitoring Oversight • A centralized subaward tracker was created at the beginning of February 2026. It is being used by the coordinator to track each subrecipient and their monitoring requirements. The tracker will allow the coordinator to perform risk assessments and acquire audit reports on a yearly basis. It will also be utilized to track and acquire financial and performance reports as per each subaward document. 3. Development and Implementation of Written Procedures • Formal written procedures for subrecipient monitoring are being developed and implemented. These procedures will establish standardized processes for conducting and documenting risk assessments, collecting and reviewing audit reports, maintaining complete subaward records, reviewing invoices and performance reports, and documenting monitoring activities. Written procedures for subrecipient monitoring are in progress and are expected to be completed by the end of March 2026. 4. Training and Accountability • Subrecipient Monitoring training was stepped up to bring the new Subaward Coordinator in line with Federal Subrecipient Monitoring requirements. We have held meetings with Attain, a consulting firm and sought guidance from colleagues at other Universities. The University remains committed to ensuring full compliance with all subrecipient monitoring requirements and to maintaining strong stewardship of public funds.

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Finding 1200719 (2025-025)

Material Weakness 2025

State of Louisiana

LA

Dear Mr. Waguespack, It has come to my attention the Single Audit of Louisiana performed on Louisiana Department of Health/Office of Behavioral Health (LDH/OBH) has rendered a finding that requires an explanation. As Secretary of LDH, I am committed to ensuring transparency and addressing any concer...

Dear Mr. Waguespack, It has come to my attention the Single Audit of Louisiana performed on Louisiana Department of Health/Office of Behavioral Health (LDH/OBH) has rendered a finding that requires an explanation. As Secretary of LDH, I am committed to ensuring transparency and addressing any concerns raised during the audit process. First, I would like to express my gratitude to the audit team for their thorough examination of our operations. We value the opportunity to improve and grow through constructive feedback. It is essential to note that we take these findings seriously and are committed to addressing them promptly. We have already begun implementing corrective measures to rectify the identified issue and prevent recurrence in the future. OBH corrective action plan, which outlines the status of action taken to correct the internal control weakness and finding of noncompliance related to the FFATA reporting requirements for the Block Grants for Substance Use, Prevention, Treatment and Recovery (SUPTRS) program, is as follows: LLA Request: OBH Response Issue: Noncompliance with Reporting Requirements for the FFATA Agree or Disagree: Yes, OBH agrees with LLA finding. Planned Corrective Action: (1) OBH is updating its internal control procedures to include the FFATA Reporting Requirements, in accordance with 2 CFR Part 170. (2) OBH developed a FFATA Data Form, to obtain information on its Subrecipients to include the entity’s name, unique Entity ID (UEI), address, principle place of performance(s), congressional district, summary of Federal subaward(s) and executive compensation information. Subrecipients will be required to certify the accuracy and completeness of their information submitted. Subrecipients will also be required to provide supporting documentation upon request. (3) OBH will update SAM.gov to include OBH SUPTRS FY2025 FFATA Reporting Data. Responsible Person: Holly Howat, Interim OBH Assistant Secretary Planned Completion Date: (1) December 31, 2025 (2) December 31, 2025. See attached draft FFATA Certification Data Form. (3) January 9, 2026 Furthermore, I have attached a copy of the OBH FFATA Data Form to substantiate our explanations and demonstrate our commitment to compliance and continuous improvement. I want to assure you that LDH remains dedicated to upholding the highest standards of integrity, transparency, and accountability. We appreciate the opportunity to address the audit findings and welcome any further inquiries or feedback. Thank you for your attention to this matter. Should you require additional information or clarification, please do not hesitate to contact me directly.

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Finding 1200718 (2025-022)

Material Weakness 2025

State of Louisiana

LA

Dear Mr. Waguespack: The Louisiana Department of Health (LDH) acknowledges receipt of correspondence from the Louisiana Legislative Auditor (LLA) dated January 12, 2026, titled Noncompliance with Earmarking Requirements. LDH appreciates the opportunity to provide this response to your office's findi...

Dear Mr. Waguespack: The Louisiana Department of Health (LDH) acknowledges receipt of correspondence from the Louisiana Legislative Auditor (LLA) dated January 12, 2026, titled Noncompliance with Earmarking Requirements. LDH appreciates the opportunity to provide this response to your office's findings. Finding: Noncompliance with Earmarking Requirements Recommendation: OBH should strengthen its system of internal controls to ensure that earmarking requirements are not being exceeded. LDH Response: OBH partially concurs with the finding and recommendation. Corrective Action: The following addresses the two SUPTRS grants noted as exceeding the 5% set-aside requirement for HIV expenditures resulting in a total of $341,408 in federal questioned costs. OBH acknowledges the expenditures exceed the HIV set-aside limit. However, $157,111 of the $341,408 in questioned costs is not applicable due to SAMHSA's decision to terminate the SUPTRS ARPA Supplement grant for cause, which removed the obligation to meet requirements for those services. To enhance OBH internal controls and ensure strict adherence to earmarking caps, OBH is implementing the following measures: • Budgetary Alignment: OBH will strictly maintain the 5% statutory cap for HIV services within the annual SUPTRS budget. • Enhanced Monitoring: In addition to monthly subrecipient expenditure reviews to identify and rectify potential overages, OBH will utilize Accountability Plan (AP) audits to verify that set-aside funds are applied exclusively to mandated services. • Contractual Enforcement: All subrecipient agreements will now include fixed spending ceilings for HIV services to ensure compliance with the set-aside maximum. You may contact Amanda Joyner, OBH Deputy Assistant Secretary, at (225) 342-2540 or via e-mail at Amanda.Joyner@la.gov with any questions about this matter.

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Finding 1200717 (2025-020)

Material Weakness 2025

State of Louisiana

LA

Dear Mr. Waguespack: The Louisiana Department of Health (LDH) acknowledges receipt of correspondence from the Louisiana Legislative Auditor (LLA) dated December 22, 2025, titled Noncompliance with and Inadequate Controls over Subrecipient Monitoring Requirements. LDH appreciates the opportunity to p...

Dear Mr. Waguespack: The Louisiana Department of Health (LDH) acknowledges receipt of correspondence from the Louisiana Legislative Auditor (LLA) dated December 22, 2025, titled Noncompliance with and Inadequate Controls over Subrecipient Monitoring Requirements. LDH appreciates the opportunity to provide this response to your office's findings. Finding: Noncompliance with and Inadequate Controls over Subrecipient Monitoring Requirements Recommendation: OBH management should develop and strengthen its system of internal controls to ensure that subrecipients are provided all required information, an evaluation is performed and documented to determine a subrecipient's risk of noncompliance, and that all subrecipients are adequately monitored to ensure compliance with federal statutes, regulations, and the terms and conditions of the subaward. LDH Response: OBH Concurs with the finding and recommendation. Corrective Action: The Office of Behavioral Health (OBH) has implemented the following measures to address and resolve the auditor's recommendations: 1. Develop and strengthen its system of internal controls to ensure that Subrecipients are provided all required information. Response: OBH has developed and implemented a standardized Subrecipient Subaward Agreement to ensure full compliance with 2 CFR 200.332(b). Effective the start of Fiscal Year 2026, this agreement formally communicates all essential award data, including: • Federal Award Identification Number (FAIN), date, and project description; • Unique Entity Identifier (UEI); and • Assistance Listings Number (ALN). 2. An evaluation is performed and documented to determine a Subrecipient's risk of noncompliance. Response: To improve fiscal and programmatic oversight of our block grant awards, OBH is developing a Risk Assessment Tool designed to assess each subrecipient's potential for fraud and noncompliance as required by 2 CFR 200.332(c). The final draft of the tool will be completed by January 16, 2026 and mandatory for all subrecipient monitoring activities beginning January 21, 2026. 3. All subrecipients are adequately monitored to ensure compliance with federal statutes, regulations, and the terms and conditions of the subaward. Response: During the period of review, OBH addressed a temporary staffing gap caused by the retirement of the internal auditor responsible for fiscal oversight. Monitoring duties were successfully reorganized and transitioned to the Grants Management section. OBH refilled the key position in January 2025. Subsequently, OBH updated its Accountability Plan (AP) Monitoring Tool and established a definitive schedule for 2026 subrecipient reviews. This schedule includes both virtual and on-site engagements, as detailed in the 2026 AP Review Calendar. You may contact Amanda Joyner, OBH Deputy Assistant Secretary, Administration & Finance, at (225) 342-1936 or via e-mail at Amanda.Joyner@la.gov with any questions about this matter.

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Finding 1200716 (2025-010)

Material Weakness 2025

State of Louisiana

LA

Dear Mr. Waguespack, Capital Area Human Services District (CAHSD) concurs with the finding regarding inadequate controls and noncompliance with earmarking requirements under the Substance Use Prevention, Treatment, and Recovery Services Block Grant (SUBG) program. Management acknowledges that existi...

Dear Mr. Waguespack, Capital Area Human Services District (CAHSD) concurs with the finding regarding inadequate controls and noncompliance with earmarking requirements under the Substance Use Prevention, Treatment, and Recovery Services Block Grant (SUBG) program. Management acknowledges that existing controls were not sufficient to ensure compliance with the requirement to expend at least 20 % of SUBG funds on primary prevention programs. Although 20 % of the funds were allocated at the beginning of the fiscal year, some contracts were not fully utilized. In addition, controls were not sufficient to ensure that expenditures were consistently coded to the correct statistical internal order numbers within the LaGov accounting system. As a result, only 16.75 % of SUBG funds were expended on primary prevention activities. CAHSD recognizes the importance of strengthening its monitoring and review processes to ensure full compliance with earmarking requirements. As a corrective action plan, CAHSD Fiscal Department will conduct a monthly review of all SUBG related expenditures to verify that transactions are coded to the appropriate LaGov statistical internal order numbers. CAHSD Fiscal Department will also conduct quarterly internal reviews to compare actual expenditures to earmarking requirements. Any variances identified will be addressed promptly by working closely with the program manager to identify underutilized contracts so that funding can be reallocated in accordance with the approved Intended Use Plan. A review of expenditures and coding will be completed by April 15, 2026, to review the current percentage of funding used and to ensure proper statistical internal order numbers are used. CAHSD is committed to strengthening its internal control environment and ensuring full compliance with all federal grant requirements moving forward. The CAHSD Accountant Administrator, Linda Roquemore, under the direction of Deputy Director Shaketha Carter, will be responsible for implementing this corrective action plan and ensuring ongoing compliance with the requirement to expend at least 20% of SUBG funds on primary prevention programs, as well as ensuring the proper use of statistical internal order numbers within the LaGov accounting system.

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Finding 1200715 (2025-009)

Material Weakness 2025

State of Louisiana

LA

Dear Mr. Waguespack, Capital Area Human Services District (CAHSD) concurs in part with the finding regarding inadequate controls over and noncompliance with Activities Allowed and Unallowed Requirements under the Substance Use Prevention, Treatment, and Recovery Services Block Grant (SUBG) program. ...

Dear Mr. Waguespack, Capital Area Human Services District (CAHSD) concurs in part with the finding regarding inadequate controls over and noncompliance with Activities Allowed and Unallowed Requirements under the Substance Use Prevention, Treatment, and Recovery Services Block Grant (SUBG) program. CAHSD has adequate controls in place to review employees’ job functions to ensure compliance with the purpose of the SUBG program and allowability under grant requirements An employee was promoted into a position that had previously been funded by the SUBG program; however, the payroll coding was not updated to reflect the correct funding source. Although updated coding information was provided, the payroll system was not revised accordingly. Upon review of SUBG program expenditures, it was determined that the employee’s funding source had not been properly updated within the payroll system. A payroll correction was subsequently processed and completed on November 17, 2025, to ensure the funding source was accurately reflected. CAHSD is committed to strengthening its internal control environment and ensuring full compliance with all federal grant requirements. As a corrective action plan, CAHSD will implement periodic internal reviews of grant expenditures to ensure continued compliance. A review of expenditures and coding will be completed by April 15, 2026. Any discrepancies identified will be promptly corrected and documented. The CAHSD Accountant Administrator, Linda Roquemore, under the direction of Deputy Director, Ms. Shaketha Carter will be responsible for ensuring implementation of this corrective action plan to ensure utilization of the correct statistical internal order numbers within the LaGov accounting system.

View Audit 395718

Finding 1200709 (2025-015)

Material Weakness 2025

State of Louisiana

LA

Dear Mr. Waguespack: The Department of Children and Family Services (DCFS) acknowledges receipt and concurs with the audit finding titled, “Noncompliance with and Control Weakness over Adoption Assistance Eligibility Requirements”. DCFS continually strives to enhance its internal processes and contr...

Dear Mr. Waguespack: The Department of Children and Family Services (DCFS) acknowledges receipt and concurs with the audit finding titled, “Noncompliance with and Control Weakness over Adoption Assistance Eligibility Requirements”. DCFS continually strives to enhance its internal processes and controls and remains committed to implementing corrective actions to ensure compliance with federal and state regulations. As part of our corrective action plan for this finding, DCFS is updating policy and practice to ensure that a copy of the completed home study is filed in the adoption subsidy case record. In addition, an adoption timeline checklist is being developed and will be incorporated into policy to support consistent documentation and timely completion of required adoption activities. DCFS will develop and implement training specifically for adoption staff. This training will address the proper completion of required forms as well as the expected timeframes for completing each step in the adoption process. Should you require additional information, please contact Brett Hanemann, Assistant Secretary of Child Welfare at (504)-439-1775 or Bret.Hanemann.DCFS@LA.GOV.

View Audit 395718

Finding 1200708 (2025-017)

Material Weakness 2025

State of Louisiana

LA

Dear Mr. Waguespack: The Department of Children and Family Services (DCFS) acknowledges receipt and concurs with the audit finding titled, “Noncompliance with Reporting Requirements for the Federal Funding Accountability and Transparency Act.” DCFS continually strives to enhance its internal process...

Dear Mr. Waguespack: The Department of Children and Family Services (DCFS) acknowledges receipt and concurs with the audit finding titled, “Noncompliance with Reporting Requirements for the Federal Funding Accountability and Transparency Act.” DCFS continually strives to enhance its internal processes and controls and remains committed to implementing and maintaining corrective actions to ensure compliance with federal and state regulations. DCFS concurs that required FFATA subaward information was not entered into the FFATA Subaward Reporting System (FSRS) or the System for Award Management (SAM), as applicable, for certain federal programs during fiscal year 2025, as required by Title 2 CFR Part 170. Management notes that the primary cause of this noncompliance during the current fiscal year was that corrective action data requests were received late in the fiscal year, which limited the Department’s ability to complete data validation and upload required information into the applicable reporting systems within the required reporting timeframe. Corrective Action Plan DCFS has strengthened and formalized internal controls to ensure the timely identification, collection, and submission of FFATA-required information and to prevent similar timing issues in future periods. Corrective actions include the following: • Corrective Action Planned: DCFS has implemented revised FFATA reporting procedures that establish internal deadlines for identifying reportable subawards and collecting required data from program and procurement areas. These procedures include defined roles and responsibilities, coordination between Procurement and Fiscal Services, and supervisory review to ensure FFATA data is complete and entered into FSRS or SAM, as applicable, within federally required timeframes. Management will also perform periodic monitoring to verify ongoing compliance. • Responsible Contact(s): Ali Bagbey, Program Manager, Office of Management and Finance - Procurement, Angela Hebert, Fiscal Director, Office of Management and Finance • Anticipated Completion Date: December 31, 2026 DCFS believes these actions address the timing issues that contributed to the fiscal year 2025 noncompliance and will strengthen FFATA reporting compliance going forward. Management will continue to monitor FFATA reporting processes to ensure sustained compliance with federal requirements.

View Audit 395718

Finding 1200707 (2025-016)

Material Weakness 2025

State of Louisiana

LA

Dear Mr. Waguespack: The Department of Children and Family Services (DCFS) acknowledges receipt and concurs with the audit finding titled, “Noncompliance with and Control Weaknesses over Foster Care Requirements”. DCFS continually strives to enhance its internal processes and controls and remains co...

Dear Mr. Waguespack: The Department of Children and Family Services (DCFS) acknowledges receipt and concurs with the audit finding titled, “Noncompliance with and Control Weaknesses over Foster Care Requirements”. DCFS continually strives to enhance its internal processes and controls and remains committed to implementing corrective actions to ensure compliance with federal and state regulations. As part of our corrective action plan for this finding, DCFS is updating policy and practice to ensure that the retention of documentation associated with criminal records checks and the State Central Registry Clearances for foster/adoptive caregivers are clearly addressed in policy. Policy related to the retention of documentation related to these checks will be reviewed with all DCFS staff in the monthly policy meeting. DCFS will develop and implement training specifically for Home Development staff. This training will address the proper completion of required forms as well as the retention of criminal records checks and State Central Registry Clearances following closure of the foster/adoptive caregiver's home. The anticipated date of completion is June 30, 2026. DCFS is strengthening internal controls by modernizing the authorization process to require digital approvals. This system upgrade will mandate that service authorizations are finalized before services begin, ensuring all Foster Care payments align with federal and state eligibility requirements. Furthermore, the digital platform will centralize documentation tracking, ensuring continuity of records and compliance even during staff transitions or vacancies. Training will be provided to all Child Welfare administrative and professional-level staff on the new process. The anticipated date of completion is June 30, 2026. Should you require additional information, please contact Connie Guillory, Assistant Secretary of Child Welfare, at 337-793-0017 or Connie.Guillory.DCFS@LA.GOV.

View Audit 395718

Finding 1200706 (2025-013)

Material Weakness 2025

State of Louisiana

LA

Dear Mr. Waguespack: The Department of Children and Family Services (DCFS) acknowledges receipt and concurs with the audit finding titled, “Noncompliance and Control Weakness Related to Subrecipient Monitoring Requirements.” DCFS continuously strives to enhance its internal processes and controls an...

Dear Mr. Waguespack: The Department of Children and Family Services (DCFS) acknowledges receipt and concurs with the audit finding titled, “Noncompliance and Control Weakness Related to Subrecipient Monitoring Requirements.” DCFS continuously strives to enhance its internal processes and controls and remains committed to implementing corrective actions to ensure compliance with federal and state regulations. DCFS concurs that instances were identified where adequate controls were not in place to ensure compliance with subrecipient monitoring requirements related to the Temporary Assistance for Needy Families (TANF) and Foster Care Title IV-E (Foster Care) programs. Management recognizes the importance of properly monitoring and managing subrecipients, including documenting risk assessments, in order to comply with federal regulations and decrease the likelihood of improper payments which may have to be returned to the federal grantor. Corrective Action Plan DCFS is improving its internal processes for subrecipient monitoring and risk assessment to reduce the risk of future errors and improve compliance. • Corrective Action Planned: o DCFS will ensure that every subaward is clearly identified to the subrecipient as a subaward and that each subrecipient contract includes the following information: (1) Federal Award Identification; (2) All requirements of the subaward, including requirements imposed by federal statutes, regulations, and the terms and conditions of the federal award; and (3) Any additional requirements that the pass-through entity imposes on the subrecipient for the recipient to meet its responsibilities under the federal award. o DCFS will implement forms and processes to evaluate each subrecipient’s fraud risk and risk of noncompliance with a subaward for purposes of determining the appropriate subrecipient monitoring. o DCFS will use the implemented process to monitor the activities of a subrecipient as necessary to ensure that the subrecipient complies with federal statutes, regulations, and the terms and conditions of the subaward. In monitoring a subrecipient, DCFS will review financial and performance reports. • Responsible Contact(s): Ali Bagbey, Procurement Director • Anticipated Completion Date: June 30, 2026 DCFS believes these actions will address the deficiencies noted in the finding. Management will continue to monitor the effectiveness of these processes to ensure sustained compliance. Should you require additional information, please contact Ali Bagbey, Procurement Director at (225) 342-0277 or Ali.Bagbey.DCFS@la.gov.

View Audit 395718

Finding 1200704 (2025-014)

Material Weakness 2025

State of Louisiana

LA

Dear Mr. Waguespack: The Department of Children and Family Services (DCFS) acknowledges receipt and concurs with the audit finding titled, “Noncompliance and Control Weakness related to the Temporary Assistance for Needy Families Work Verification Plan”. DCFS continually strives to enhance its inter...

Dear Mr. Waguespack: The Department of Children and Family Services (DCFS) acknowledges receipt and concurs with the audit finding titled, “Noncompliance and Control Weakness related to the Temporary Assistance for Needy Families Work Verification Plan”. DCFS continually strives to enhance its internal processes and controls and remains committed to implementing corrective actions to ensure compliance with federal and state regulations. Although the exceptions noted occurred during the prior period under DCFS, Louisiana Works began administration of the Strategies to Empower People (STEP) program effective October 1, 2025, and proposed the following continuous corrective actions to standardize documentation and oversight. Louisiana Works STEP Leadership will issue a memorandum on policy documentation and verification to reinforce a clear and standardized guide regarding acceptable work activity documentation and verification requirements. STEP Supervisors will conduct routine secondary reviews of work activity documentation to confirm accuracy, completeness, and alignment with reported hours. Additionally, targeted quality assurance reviews will be conducted to identify trends, gaps, and training needs. STEP Leadership will also provide targeted training to STEP Coaches focused on the Work Verification Plan, documentation standards, and federal TANF requirements. Training will emphasize proper case maintenance, verification protocols, and documentation retention. Supervisory expectations related to compliance monitoring will be clearly communicated and outlined in a newly created Standard Operating Procedures manual. The anticipated date of completion and availability is 02/09/2026. Ongoing compliance monitoring will be conducted by STEP Quality Assurance Consultants, Training Consultants, Managers, and Supervisors. A new requirement has been implemented requiring STEP Managers to review a minimum of two cases per month for each team they supervise. DCFS TANF Consultant will monitor Louisiana Works to ensure the corrective action plan is fully executed. Should you require additional information, please contact Charles Watkins, Assistant Secretary of Family Support at Charles.Watkins.DCFS@LA.GOV.

View Audit 395718

Finding 1200702 (2025-012)

Material Weakness 2025

State of Louisiana

LA

Dear Mr. Waguespack: The Department of Children and Family Services (DCFS) acknowledges receipt and concurs with the audit finding titled, “Noncompliance and Control Weakness Related to the Temporary Assistance for Needy Families Child Support Cooperation Requirements”. DCFS continually strives to e...

Dear Mr. Waguespack: The Department of Children and Family Services (DCFS) acknowledges receipt and concurs with the audit finding titled, “Noncompliance and Control Weakness Related to the Temporary Assistance for Needy Families Child Support Cooperation Requirements”. DCFS continually strives to enhance its internal processes and controls and remains committed to implementing corrective actions to ensure compliance with federal and state regulations. Although the exceptions noted occurred during the prior period under DCFS, the Louisiana Department of Health (LDH) began administration of the Family Independence Temporary Assistance Program (FITAP) and Kinship Care Subsidy Program (KCSP) programs effective October 1, 2025, and proposed the following continuous corrective actions that include annual specialized training, active monitoring, and accountability measures. LDH Program Consultants will conduct specialized training annually to ensure staff are aware of their responsibilities. This training will emphasize that the compliance information contained within the daily LASES Case Updates report must be acted upon within the 10-day timeframe. LDH Program Consultants will be tasked with monitoring non-compliant cases, ensuring that the analyst and their supervisor are in receipt of the report and act timely. The LDH Program Consultants will provide LDH leadership with ongoing awareness and oversight for staff who fail to act upon the notification by escalating the information on the 9th day to the Parish Manager and on the 10th day to the Area Director. DCFS TANF Consultant will monitor LDH to ensure the corrective action plan is fully executed. Should you require additional information, please contact Charles Watkins, Assistant Secretary of Family Support at Charles.Watkins.DCFS@LA.GOV.

View Audit 395718

Finding 1200701 (2025-011)

Material Weakness 2025

State of Louisiana

LA

Dear Mr. Waguespack: The Department of Children and Family Services (DCFS) acknowledges receipt and concurs with the audit finding titled, “Control Weakness over Temporary Assistance for Needy Families Eligibility Requirements”. DCFS continually strives to enhance its internal processes and controls...

Dear Mr. Waguespack: The Department of Children and Family Services (DCFS) acknowledges receipt and concurs with the audit finding titled, “Control Weakness over Temporary Assistance for Needy Families Eligibility Requirements”. DCFS continually strives to enhance its internal processes and controls and remains committed to implementing corrective actions to ensure compliance with federal and state regulations. Although the exceptions noted occurred during the prior period under DCFS, the Louisiana Department of Health (LDH) began administration of the Family Independence Temporary Assistance Program (FITAP) and Kinship Care Subsidy Program (KCSP) programs effective October 1, 2025, and proposed the following continuous corrective actions that include formal coaching and active monitoring through supervisory case reviews. LDH will conduct formal coaching to ensure staff are aware of their responsibilities. This formal coaching will be mandated for eligibility staff identified as inaccurately budgeting income or entering incorrect disability coding, emphasizing the importance of precise and accurate income budgeting and data entry. In addition to routine case reviews, LDH Supervisors will conduct three additional case reviews for three months as continuous monitoring and corrective measures. DCFS TANF Consultant will monitor LDH to ensure the corrective action plan is fully executed. Should you require additional information, please contact Charles Watkins, Assistant Secretary of Family Support at Charles.Watkins.DCFS@LA.GOV.

View Audit 395718

Finding 1200700 (2025-002)

Material Weakness 2025

State of Louisiana

LA

Dear Mr. Waguespack: The Department of Children and Family Services (DCFS) acknowledges receipt and concurs with the audit finding titled, “Control Weakness and Noncompliance Related to Cost Allocation Process.” DCFS continually strives to enhance its internal processes and controls and remains comm...

Dear Mr. Waguespack: The Department of Children and Family Services (DCFS) acknowledges receipt and concurs with the audit finding titled, “Control Weakness and Noncompliance Related to Cost Allocation Process.” DCFS continually strives to enhance its internal processes and controls and remains committed to implementing and maintaining corrective actions to ensure compliance with federal and state regulations. DCFS concurs that instances were identified where cost allocation forms did not align with supporting documentation, utilizing incorrect grant numbers, and/or referencing federal programs not included in the approved Cost Allocation Plan (CAP). While the identified costs were not material in terms of amount, management recognizes the importance of maintaining effective internal controls to ensure that costs are allocated in accordance with federal requirements and the CAP. Corrective Action Plan DCFS is strengthening internal controls over the cost allocation review process to reduce the risk of future errors and improve compliance. Corrective actions include the following: • Corrective Action Planned: DCFS will enhance its review procedures for cost allocation forms by implementing additional supervisory review before posting, reinforcing documentation requirements, and providing refresher guidance to staff responsible for preparing and reviewing cost allocation entries. Management will also perform periodic monitoring reviews to ensure allocations are consistent with the approved CAP and supported by appropriate documentation. • Responsible Contact(s): Tonja Jones, Cost Allocation Manager, Office of Management and Finance Angela Hebert, Fiscal Director, Office of Management and Finance • Anticipated Completion Date: June 30, 2026 DCFS believes these actions will strengthen internal controls and address the deficiencies noted in the finding. Management will continue to monitor the effectiveness of these controls to ensure sustained compliance.

View Audit 395718

Finding 1200699 (2025-008)

Material Weakness 2025

State of Louisiana

LA

Dear Mr. Waguespack, Thank you for your diligence in conducting the recent audit of the Student Tuition Assistance and Revenue Trust Programs (START). We have carefully reviewed the audit finding and concur with the assessment of “Noncompliance and Control Weakness Over Gear Up Scholarship” for the ...

Dear Mr. Waguespack, Thank you for your diligence in conducting the recent audit of the Student Tuition Assistance and Revenue Trust Programs (START). We have carefully reviewed the audit finding and concur with the assessment of “Noncompliance and Control Weakness Over Gear Up Scholarship” for the period ending December 31, 2024. Management has contacted the grantor for further instructions for returning the unspent scholarship funds to the grantor. Porsche Harris, START Director, will be responsible to ensure compliance with federal regulations for the return of GEAR UP funds or the redistribution as well as the development of written policies and procedures and staff compliance with that information in accordance with federal regulations. Anticipated completion date is December 31, 2025. We value your ongoing partnership and appreciate the cooperation of your staff throughout the audit process. Please let me know if you have any questions or require further information.

View Audit 395718

Finding 1200689 (2025-007)

Material Weakness 2025

State of Louisiana

LA

Audit Period: Year End June 30, 2024 The Road Home Corporation d/b/a Louisiana Land Trust (LLT) respectively submits the following corrective action plan for the year ended June 30, 2024. Condition: Louisiana Land Trust (LLT) does not have adequate controls in place to ensure that LLT credit card tr...

Audit Period: Year End June 30, 2024 The Road Home Corporation d/b/a Louisiana Land Trust (LLT) respectively submits the following corrective action plan for the year ended June 30, 2024. Condition: Louisiana Land Trust (LLT) does not have adequate controls in place to ensure that LLT credit card transactions and bank accounts are properly monitored and comply with its own policies and federal program regulations, increasing the risk of theft and fraud. Actions to be taken – 1. Management concurs and has taken action to make certain that all credit card transactions/ statements as well as all bank accounts are monitored on a regular basis to ensure that each account reconciles properly. 2. Management has changed its internal procedures and reassigned responsibilities to staff to help ensure proper checks and balance take place on a regular basis. 3. Management has worked with our new outside CPA firm to integrate all accounts into our bookkeeping system to allow for automatic transaction reconciliations. If there are any questions regarding the actions taken, please feel free to reach out and let me know.

View Audit 395718

Finding 1200685 (2025-006)

Material Weakness 2025

State of Louisiana

LA

Dear Mr. Waguespack: In response to the identified deficiencies in the oversight for Summer EBT Program for Children, the agency submits the following formal response. The agency acknowledges and concurs in part with the specific finding while clarifying the operational context of the Summer EBT Pro...

Dear Mr. Waguespack: In response to the identified deficiencies in the oversight for Summer EBT Program for Children, the agency submits the following formal response. The agency acknowledges and concurs in part with the specific finding while clarifying the operational context of the Summer EBT Program for Children. As a newly established administrative initiative launched in 2024, the program operated under a transitional framework where formal data entry and reporting to the Food and Nutrition Service (FNS) were not mandated until January 2025. To facilitate these requirements, staff members had to secure access to the Food Programs Reporting System (FPRS), which necessitated a single user holding dual responsibilities for both data entry and certification. Due to the new implementation of the program and the specific time constraints imposed by the FPRS reporting cycle, the department was initially unaware of the stringent internal control requirements regarding the separation of duties. Once aware, on August 13, 2025, the department began the process, submitted the required FNS User Access Request Form 674, to comply with the control access with the separation of duties. During this process, on October 1, 2025, the Agency integrated with the Louisiana Department of Health, which required the process to start over again, which caused a delay. The request for additional user certifications to FPRS remains pending. Nevertheless, the Program Manager maintained oversight by performing manual data validations prior to final submission to ensure accuracy. As of February 19, 2026, a formal corrective action plan is currently being executed to resolve the specific Louisiana Legislative Auditor finding related to internal controls. Under the direction of Economic Independence Manager, Yulonda Reed, the section has engaged in staff discussions to ensure a comprehensive understanding of the necessary procedural shifts. This adjustment will enforce a strict separation of duties, effectively isolating the functions of data entry from the final certification process to mitigate the risk of error. The administrative timeline for finalizing this finding is dependent upon the Food and Nutrition Service (FNS) reviewing and granting authorization for the FNS-674 User Access Request Form. This procedural requirement ensures that all personnel involved in data collection or system analysis have the requisite security clearances and system permissions mandated by federal information security protocols.

View Audit 395718

Finding 1200684 (2025-002)

Material Weakness 2025

American Horse School

SD

Responsible Individual: Interim School Board Members Corrective Action Plan: The Interim Board of Directors will continue to monitor spending and expenditures charged to the Administrative Cost Grants for Indian Schools, until a newly elected Board of Directors is in place. The Interim Board will pr...

Responsible Individual: Interim School Board Members Corrective Action Plan: The Interim Board of Directors will continue to monitor spending and expenditures charged to the Administrative Cost Grants for Indian Schools, until a newly elected Board of Directors is in place. The Interim Board will provide necessary training to the newly elected Board of Directors. Anticipated Completion Date: June 30, 2026

View Audit 395714

Finding 1200683 (2025-001)

Material Weakness 2025

American Horse School

SD

Responsible Individual: Anthony Muilenburg, Business Manager Corrective Action Plan: The Business Manager will continue to review payroll and verify accuracy by reconciling reports to employee timesheets Anticipated Completion Date: Ongoing

View Audit 395714

Corrective Action Plans

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