Corrective Action Plans

Finding 1218661 (2025-051)

Material Weakness 2025

State of Michigan

MI

Eligibility Subrecipient Monitoring Material Weakness § 200.516

Finding 2025-051 Low-Income Home Energy Assistance, ALN 93.568 - Eligibility Determinations Management Views MDHHS agrees with the finding. Planned Corrective Action In May 2025, MDHHS issued memo 2025-20, which implemented mandatory training requirements for all eligibility staff and their managers...

Finding 2025-051 Low-Income Home Energy Assistance, ALN 93.568 - Eligibility Determinations Management Views MDHHS agrees with the finding. Planned Corrective Action In May 2025, MDHHS issued memo 2025-20, which implemented mandatory training requirements for all eligibility staff and their managers to address audit-related findings. The State Emergency Relief (SER) training courses occur biannually, in March and August, and cover verification of client income, client contribution payments, and proof of energy crisis. To ensure accuracy of payment processing, in October 2025, MDHHS issued memo 2025-48 which implemented the mandatory SER Reconciliation Report requirement. As part of this updated process, each county office must run the SER Energy Reconciliation Report weekly and review all energy-related payments to ensure accuracy and confirm that required documentation is maintained. In addition, MDHHS will continue to communicate with BSCs and local offices regarding the requirements to maintain sufficient documentation to support SER processing through formal internal communication channels. MDHHS will also continue to provide direct SER guidance and clarification through the SER mailbox. Further, MDHHS will explore a potential system enhancement that will provide automated solutions for an added layer of efficiency and compliance. Should such an improvement be identified, it will be submitted through the Departmental Work Intake Process for prioritization and implementation by the Bridges technical team. Anticipated Completion Date MDHHS has not yet determined an anticipated completion date because the completion date is dependent on the priority assigned to system enhancements as determined by the Departmental Work Intake Process. Responsible Individual(s) Bethany Cabanaw, MDHHS Kent Schulze, MDHHS Julie McLaughlin, MDHHS

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Finding 1218656 (2025-050)

Material Weakness 2025

State of Michigan

MI

Subrecipient Monitoring

Finding 2025-050 Refugee and Entrant Assistance State/Replacement Designee Administered Programs, ALN 93.566 - Subrecipient Audits and Subaward Information Management Views LEO agrees with the finding. Planned Corrective Action For part a., LEO implemented a standardized single audit review process,...

Finding 2025-050 Refugee and Entrant Assistance State/Replacement Designee Administered Programs, ALN 93.566 - Subrecipient Audits and Subaward Information Management Views LEO agrees with the finding. Planned Corrective Action For part a., LEO implemented a standardized single audit review process, including a robust tracking mechanism, in the third quarter of fiscal year 2025. LEO subsequently reviewed all nine Refugee and Entrant Assistance State/Replacement Designee Administered Programs subrecipient single audit reports identified in the finding during the first and second quarters of fiscal year 2026. LEO will continue to implement its standardized single audit review process to ensure that all required subrecipient single audit reports are identified, obtained, reviewed, and issued a management decision letter within the federal six‑month resolution deadline when applicable, maintaining full compliance with Uniform Guidance requirements. For part b., LEO implemented new procedures as of March 31, 2026, where the LEO OGM grants administrator and LEO grants analyst perform segregated duties to ensure the required subaward information is provided within the initial grant agreement and within subsequent amendments, as required. Anticipated Completion Date a. June 30, 2026 b. Completed Responsible Individual(s) Allen Williams, LEO Christopher Blondell, LEO Benjamin Cabanaw, LEO Nicole Adams, LEO

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Finding 1218655 (2025-049)

Material Weakness 2025

State of Michigan

MI

Reporting Subrecipient Monitoring Material Weakness

Finding 2025-049 Refugee and Entrant Assistance State/Replacement Designee Administered Programs, ALN 93.566 - FFATA Reporting Management Views LEO agrees with the finding. LEO is fully committed to improving its FFATA process. It is LEO’s position that the switch from the FFATA Subaward Reporting S...

Finding 2025-049 Refugee and Entrant Assistance State/Replacement Designee Administered Programs, ALN 93.566 - FFATA Reporting Management Views LEO agrees with the finding. LEO is fully committed to improving its FFATA process. It is LEO’s position that the switch from the FFATA Subaward Reporting System to SAM for FFATA reporting in March 2025 contributed to some of the cited deficiencies. Planned Corrective Action The LEO Finance Division is currently working with the LEO Grants Division to determine a better process of notification for new subawards and amendments so that they can be reported within the required timeframe. The process will be documented in an updated formal procedure which focuses on timely communication as the primary control and SIGMA Business Intelligence queries as a secondary control to ensure completeness of reporting. Anticipated Completion Date June 30, 2026 Responsible Individual(s) Heidi Parker, LEO Chris Johnson, LEO

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Finding 1218654 (2025-048)

Material Weakness 2025

State of Michigan

MI

Allowable Costs / Cost Principles Eligibility Subrecipient Monitoring § 200.516

Finding 2025-048 Refugee and Entrant Assistance State/Replacement Designee Administered Programs, ALN 93.566 - Assistance to Ineligible Refugees Management Views LEO and MDHHS agree with the finding. Planned Corrective Action MDHHS acknowledges that documentation supporting compliance with refugee c...

Finding 2025-048 Refugee and Entrant Assistance State/Replacement Designee Administered Programs, ALN 93.566 - Assistance to Ineligible Refugees Management Views LEO and MDHHS agree with the finding. Planned Corrective Action MDHHS acknowledges that documentation supporting compliance with refugee cash assistance work registry requirements must be consistently maintained in the electronic case record. The issue identified pertains to documentation of ongoing work registration requirements within the case record to maintain eligibility, noting that the clients were eligible at the time of application approval. Beginning January 2026, MDHHS implemented a monthly manual review of active cases to ensure required documentation is present. MDHHS is also pursuing a Bridges system enhancement to automate generation and storage of the DHS-4785R (Refugee Employment Program Appointment Notice) in the electronic case file. This enhancement will be submitted through the Departmental Work Intake Process for prioritization and implementation by the Bridges technical team. Anticipated Completion Date MDHHS has not yet determined an anticipated completion date because the date is dependent on the priority assigned to the system enhancement as determined by the Departmental Work Intake Process. Responsible Individual(s) Benjamin Cabanaw, LEO Nicole Adams, LEO Bethany Cabanaw, MDHHS Kent Schulze, MDHHS Mariah Schaefer, MDHHS

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Finding 1218653 (2025-047)

Material Weakness 2025

State of Michigan

MI

Subrecipient Monitoring Allowable Costs / Cost Principles Period of Performance

Finding 2025-047 Refugee and Entrant Assistance State/Replacement Designees Administered Programs, ALN 93.566 - Salesforce Security Management and Access Controls Management Views LEO agrees with the finding. For part a., the LEO Office of Global Michigan (OGM) maintains a limited number of internal...

Finding 2025-047 Refugee and Entrant Assistance State/Replacement Designees Administered Programs, ALN 93.566 - Salesforce Security Management and Access Controls Management Views LEO agrees with the finding. For part a., the LEO Office of Global Michigan (OGM) maintains a limited number of internal Salesforce user licenses. As a result, internal user access is inherently constrained and proactively monitored based on employment status. LEO OGM’s existing process for validating continued need is tied to personnel changes: internal user access remains appropriate as long as the employee occupies a position with assigned Salesforce responsibilities, and access is removed when employees separate or move to roles that do not require use of the system. Because license allocation is strictly managed and user roles are position-based, LEO OGM has considered this process to constitute ongoing monitoring rather than an annual recertification process. However, LEO OGM acknowledges that this practice does not fully meet the specific requirement for a documented annual review as noted in SOM Technical Standard 1340.00.020.01 (Access Control Standard). Planned Corrective Action For part a., LEO OGM will formalize and implement an internal user account review process, including conducting and documenting an annual review of all user access accounts in accordance with the Access Control Standard. For part b., LEO OGM will work collaboratively with program and system administrators to strengthen controls around identifying and timely deactivating inactive internal and external user accounts. LEO OGM will establish clearer procedures, increase review frequency, and document the actions taken to ensure accounts exceeding inactivity thresholds are disabled consistently and timely. Anticipated Completion Date September 30, 2026 Responsible Individual(s) Ben Cabanaw, LEO Nicole Adams, LEO

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Finding 1218648 (2025-046)

Material Weakness 2025

State of Michigan

MI

Eligibility Special Tests & Provisions

Finding 2025-046 Temporary Assistance for Needy Families, ALN 93.558 - Child Support Non-Cooperation Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS ESA will review each finding with the local offices responsible for the identified error cases. MDHHS ESA will issue a ...

Finding 2025-046 Temporary Assistance for Needy Families, ALN 93.558 - Child Support Non-Cooperation Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS ESA will review each finding with the local offices responsible for the identified error cases. MDHHS ESA will issue a memo to local office staff by September 30, 2026, emphasizing the importance of taking appropriate action when clients are either cooperating or not cooperating with child support requirements. Additionally, MDHHS ESA policy staff will collaborate with the Bridges technical team by September 30, 2026, to determine whether system enhancements are needed to ensure sanctions and cooperations are applied in a timely manner. If enhancements are determined to be necessary, a Bridges work request will be developed and scheduled according to established processes and timeframes. Anticipated Completion Date MDHHS has not yet determined an anticipated completion date because the date is dependent on the potential system enhancements identified. Responsible Individual(s) Bethany Cabanaw, MDHHS Kenton Schultz, MDHHS Brian Sanborn, MDHHS

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Finding 1218647 (2025-045)

Material Weakness 2025

State of Michigan

MI

Subrecipient Monitoring

Finding 2025-045 Temporary Assistance for Needy Families, ALN 93.558 - Risk Assessments Management Views MDHHS agrees with the finding. Planned Corrective Action For the one subrecipient, the annual subrecipient risk assessment was completed in fiscal year 2026 in accordance with federal requirement...

Finding 2025-045 Temporary Assistance for Needy Families, ALN 93.558 - Risk Assessments Management Views MDHHS agrees with the finding. Planned Corrective Action For the one subrecipient, the annual subrecipient risk assessment was completed in fiscal year 2026 in accordance with federal requirements and incorporated into the subrecipient monitoring plan. Moving forward, MDHHS will ensure the risk assessment is completed annually, properly documented, and incorporated into the annual subrecipient monitoring plan. Anticipated Completion Date Completed Responsible Individual(s) Lynn Hendges, MDHHS

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Finding 1218646 (2025-044)

Material Weakness 2025

State of Michigan

MI

Allowable Costs / Cost Principles Student Financial Aid Cash Management § 200.516

Finding 2025-044 Temporary Assistance for Needy Families, ALN 93.558 - Inappropriate TANF-Funded Emergency Foster Care Assistance Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS redetermined the Foster Care Title IV-E (Title IV-E) eligibility after the birth certifica...

Finding 2025-044 Temporary Assistance for Needy Families, ALN 93.558 - Inappropriate TANF-Funded Emergency Foster Care Assistance Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS redetermined the Foster Care Title IV-E (Title IV-E) eligibility after the birth certificate was received and the youth was determined to be Title IV-E eligible. MDHHS has already reclassified the funds to the appropriate funding source, allowing the department to claim Title IV-E for the eligible placement, and repaying any TANF overpayments. Reconciliations between different fund sources, or recoupments for overpayments, will be created within 30 calendar days of receipt of supporting documentation and approved timely by management. All recoupment and reconciliation records will be approved by management no later than September 30 each fiscal year to ensure compliance with year-end requirements. Anticipated Completion Date September 30, 2026 Responsible Individual(s) Nancy Berger, MDHHS

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Finding 1218645 (2025-043)

Material Weakness 2025

State of Michigan

MI

Allowable Costs / Cost Principles Eligibility § 200.516

Finding 2025-043 Temporary Assistance for Needy Families, ALN 93.558 - Non-Financial Eligibility Documentation Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS will issue a memo to reinforce documentation requirements for TANF eligibility determinations by September 30...

Finding 2025-043 Temporary Assistance for Needy Families, ALN 93.558 - Non-Financial Eligibility Documentation Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS will issue a memo to reinforce documentation requirements for TANF eligibility determinations by September 30, 2026. The memo will clarify expectations for obtaining, uploading, and retaining all required non-financial eligibility verifications in accordance with federal regulations and MDHHS policy. MDHHS will also address each individual case-specific issue with the appropriate local office. In addition, these findings will be addressed as part of TANF mandatory audit training for local office staff scheduled in July 2026. This training will emphasize the importance of maintaining complete eligibility records, proper use of the Work and Self Sufficiency Rules (DHS-1538) form, verification of age and relationship, and timely completion of the Family Automated Screening Tool. Further, MDHHS ESA policy staff are working with the MDHHS Bridges technical team to implement a system modification during September 2026 that will enhance the application review process. Anticipated Completion Date September 30, 2026 Responsible Individual(s) Bethany Cabanaw, MDHHS Kenton Schulze, MDHHS Brian Sanborn, MDHHS Ashley Soper, MDHHS

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Finding 1218636 (2025-042)

Material Weakness 2025

State of Michigan

MI

Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles

Finding 2025-042 Medicaid Cluster, ALN 93.775, 93.777, and 93.778 - Benefits Monitoring Program Management Views MDHHS agrees with the finding. Planned Corrective Action For part a., for the one identified exception, MDHHS notified the MHP that the enrollment notification letter was not sent in a ti...

Finding 2025-042 Medicaid Cluster, ALN 93.775, 93.777, and 93.778 - Benefits Monitoring Program Management Views MDHHS agrees with the finding. Planned Corrective Action For part a., for the one identified exception, MDHHS notified the MHP that the enrollment notification letter was not sent in a timely manner. To ensure compliance moving forward, the MHP Benefits Monitoring Program (BMP) care managers were provided training in February 2026 on the BMP process, emphasizing the importance of verifying that enrollment notification letters are created and sent to members within the required timeframe. MDHHS believes this is an isolated incident, however, MDHHS obtained and reviewed each MHP’s documented step-by-step enrollment process to confirm that it includes the generation and distribution of the enrollment notification letter. For part b., MDHHS implemented a monitoring process in February 2026. As part of this process, the Enrolled Research Report is reviewed weekly to ensure all required 24 month reviews are identified and completed in a timely manner. Anticipated Completion Date Completed Responsible Individual(s) Torey Schlaufman, MDHHS

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Finding 1218635 (2025-041)

Material Weakness 2025

State of Michigan

MI

Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles § 200.516

Finding 2025-041 Medicaid Cluster, ALN 93.775, 93.777, and 93.778 - Medical Records Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS will continue to reinforce provider responsibilities related to documentation and record retention. As part of the annual communication ...

Finding 2025-041 Medicaid Cluster, ALN 93.775, 93.777, and 93.778 - Medical Records Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS will continue to reinforce provider responsibilities related to documentation and record retention. As part of the annual communication plan, MDHHS issues provider alerts twice per year to remind providers of the MDHHS record retention policy and post payment review process. The most recent provider alert was issued on January 5, 2026, and communicated to providers the importance of maintaining appropriate documentation for services provided. The provider was not responsive to MDHHS’s request for documentation for the exception identified. As a result, MDHHS voided the associated claim on February 11, 2026, recouped the full payment, and notified the provider of the action taken. Anticipated Completion Date Completed Responsible Individual(s) Alexis Bond, MDHHS

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Finding 1218634 (2025-040)

Material Weakness 2025

State of Michigan

MI

Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles

Finding 2025-040 Medicaid Cluster, ALN 93.775, 93.777, and 93.778 - Practitioner Reimbursement Management Views MDHHS agrees with the finding. Planned Corrective Action In March 2025, MDHHS implemented an interface fix to resolve multiple system issues and eliminate limitations that contributed to r...

Finding 2025-040 Medicaid Cluster, ALN 93.775, 93.777, and 93.778 - Practitioner Reimbursement Management Views MDHHS agrees with the finding. Planned Corrective Action In March 2025, MDHHS implemented an interface fix to resolve multiple system issues and eliminate limitations that contributed to retroactive disenrollment. MDHHS has also submitted a work request for a system enhancement within Bridges to prevent recurrence of retroactive eligibility removals and improve the accuracy of eligibility across systems. In addition, MDHHS will evaluate additional potential processes to identify and resolve discrepancies between eligibility and enrollment data across systems, thereby reducing the risk of improper payments. Anticipated Completion Date MDHHS will determine an anticipated completion date after the work request has been prioritized. Responsible Individual(s) Jamy Hengesbach, MDHHS

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Finding 1218633 (2025-039)

Material Weakness 2025

State of Michigan

MI

Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles Eligibility § 200.516

Finding 2025-039 Medicaid Cluster, ALN 93.775, 93.777, and 93.778 - Ineligible HHP Payments Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS generates and distributes a monthly hospitalization report to adult services supervisors, who then distribute to adult services ...

Finding 2025-039 Medicaid Cluster, ALN 93.775, 93.777, and 93.778 - Ineligible HHP Payments Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS generates and distributes a monthly hospitalization report to adult services supervisors, who then distribute to adult services workers as part of the post-payment review process. During February 2025, MDHHS issued an Adult Services Notification to managers and directors reminding local office management of the expectation to thoroughly monitor and review the hospitalization reports to ensure timely and accurate action is taken by adult services workers. MDHHS also reissued the Home Help Recoupment Process training and procedural resources during February 2025 to adult services workers who manage Home Help cases to ensure process steps are consistently followed. In addition, during February 2026, MDHHS issued recoupments for the two clients identified by the Office of the Auditor General as part of the audit finding. During June 2025, MDHHS enhanced the monthly hospitalization report to improve data accuracy for identified service overlaps and ensure timely recovery of payments. However, MDHHS identified timing differences between the report run dates and the weekly schedule updates of CHAMPS hospitalization data that could result in incomplete hospitalization data within the monthly monitoring report. To ensure all relevant records are captured and promptly recover payments to clients hospitalized while receiving Home Help Program services who no longer met eligibility requirements, the timing of the report has been modified. Anticipated Completion Date Completed Responsible Individual(s) Elaina Brown, MDHHS

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Finding 1218632 (2025-038)

Material Weakness 2025

State of Michigan

MI

Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles Eligibility § 200.516

Finding 2025-038 Medicaid Cluster, ALN 93.775, 93.777, and 93.778 - Payments on Behalf of Ineligible Beneficiaries Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS continues to work with DTMB on the underlying issues in Bridges causing the overpayments, as well as deve...

Finding 2025-038 Medicaid Cluster, ALN 93.775, 93.777, and 93.778 - Payments on Behalf of Ineligible Beneficiaries Management Views MDHHS agrees with the finding. Planned Corrective Action MDHHS continues to work with DTMB on the underlying issues in Bridges causing the overpayments, as well as developing mitigation strategies to temporarily address the overpayment concerns while more permanent system solutions are developed. As part of the Departmental Work Intake Process, MDHHS submitted work requests for prioritization to implement larger system changes that will resolve the remaining synchronization issues. Anticipated Completion Date MDHHS will determine an anticipated completion date after the work requests have been prioritized. Responsible Individual(s) Jamy Hengesbach, MDHHS

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Finding 1218631 (2025-037)

Material Weakness 2025

State of Michigan

MI

Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles

Finding 2025-037 Medicaid Cluster, ALN 93.775, 93.777, and 93.778 - Transitional Medicaid Eligibility Management Views MDHHS agrees that renewals for certain beneficiaries within the 16,682 of the total 375,345 beneficiaries receiving transitional medical assistance (TMA) during the audit period wer...

Finding 2025-037 Medicaid Cluster, ALN 93.775, 93.777, and 93.778 - Transitional Medicaid Eligibility Management Views MDHHS agrees that renewals for certain beneficiaries within the 16,682 of the total 375,345 beneficiaries receiving transitional medical assistance (TMA) during the audit period were not processed in a timely manner. MDHHS also notes that if a beneficiary was misclassified in an incorrect aid category but remained eligible to transition to another Medicaid aid category, no improper payments would have occurred. During the audit testing period, MDHHS had a limited timeframe to conduct manual validation making it infeasible to determine whether improper classifications were associated with all 16,682 beneficiaries identified. Planned Corrective Action As part of the regular eligibility redetermination process, MDHHS has already ended TMA for approximately 14,300 of the 16,682 beneficiaries cited as of January 2026. MDHHS will continue to complete a full review of the remaining beneficiaries to confirm the current eligibility status of these beneficiaries and assess whether they should remain in TMA, transition to another Medicaid aid category, or have their coverage closed if they are no longer eligible. While some individuals may no longer meet TMA criteria, many may be eligible for other Medicaid coverage, and this will be assessed through the follow-up review. MDHHS will complete the review, and establish an ongoing process to monitor redetermination metrics, by September 2026. In December 2025, MDHHS enhanced MI Reports functionality for redetermination reports used to manage the eligibility renewal process to improve timely processing of redeterminations. Also, MDHHS evaluated system functionality related to the timeliness of TMA renewals and identified that the system currently creates one alert for beneficiaries with multiple program renewals. To ensure TMA renewals are processed on a timely basis, MDHHS is collaborating with the Bridges technical team to implement a system enhancement that will generate a separate TMA-specific redetermination alert. This enhancement is expected to be implemented by December 2026. Anticipated Completion Date December 2026 Responsible Individual(s) Jamy Hengesbach, MDHHS Mariah Schaefer, MDHHS

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Finding 1218630 (2025-036)

Material Weakness 2025

State of Michigan

MI

Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles

Finding 2025-036 Medicaid Cluster, ALN 93,775, 93.777, and 93.778 - MiAIMS User Access Management Views MDHHS agrees with the finding. Planned Corrective Action The MDHHS Access Management Section will continue to perform the monthly Michigan Adult Integrated Management System (MiAIMS)-to-DSA user r...

Finding 2025-036 Medicaid Cluster, ALN 93,775, 93.777, and 93.778 - MiAIMS User Access Management Views MDHHS agrees with the finding. Planned Corrective Action The MDHHS Access Management Section will continue to perform the monthly Michigan Adult Integrated Management System (MiAIMS)-to-DSA user reconciliation, resolve discrepancies, and provide LOSCs with a summary of results. As part of strengthening access controls, the MDHHS Access Management Section discontinued the practice of issuing advance notices prior to access termination, which previously allowed additional time for the user to complete recertification. Going forward, any active MiAIMS user who does not have a corresponding approved DSA request will have their access terminated as part of the monthly reconciliation process. Anticipated Completion Date Completed Responsible Individual(s) Cynthia Farrell, MDHHS Tim Kwast, MDHHS

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Finding 1218620 (2025-006)

Material Weakness 2025

State of Michigan

MI

Special Tests & Provisions Internal Control / Segregation of Duties § 200.303

Finding 2025-006 ADP Security Program Management Views MDHHS and DTMB agree with the finding. Planned Corrective Action For 2 of the 3 systems cited, the Authority to Operate (ATO) was successfully re-established on July 8, 2025, and October 10, 2025, respectively. For the remaining system, MDHHS an...

Finding 2025-006 ADP Security Program Management Views MDHHS and DTMB agree with the finding. Planned Corrective Action For 2 of the 3 systems cited, the Authority to Operate (ATO) was successfully re-established on July 8, 2025, and October 10, 2025, respectively. For the remaining system, MDHHS and DTMB will complete a comprehensive update to the System Security Plan, incorporate all missing control assessments into the risk analysis, and implement the ATO by August 30, 2026. Anticipated Completion Date August 30, 2026 Responsible Individual(s) Nathan Buckwalter, DTMB Heather Frick, DTMB Veronica Maxson, MDHHS Jim Bowen, MDHHS Kasi Hunziger, MDHHS Lyndia Deromedi, MDHHS

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Finding 1218552 (2025-035)

Material Weakness 2025

State of Michigan

MI

Subrecipient Monitoring

Finding 2025-035 CCDF Cluster, ALN 93.575 and 93.596 - Subaward Information Management Views MiLEAP agrees with the finding. Planned Corrective Action MiLEAP finalized grant procedures for reviewing award documents in July 2025, which includes utilizing a new grant template to ensure all requirement...

Finding 2025-035 CCDF Cluster, ALN 93.575 and 93.596 - Subaward Information Management Views MiLEAP agrees with the finding. Planned Corrective Action MiLEAP finalized grant procedures for reviewing award documents in July 2025, which includes utilizing a new grant template to ensure all requirements are included on each award. MiLEAP also hired a procurement manager in fiscal year 2025 that is responsible for including the needed information into all subrecipient grant agreements. Anticipated Completion Date: Completed Responsible Individual(s) Amanda Lopez, MiLEAP Brandon Colby, MiLEAP

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Finding 1218551 (2025-034)

Material Weakness 2025

State of Michigan

MI

Reporting Subrecipient Monitoring

Finding 2025-034 CCDF Cluster, ALN 93.575 and 93.596 - FFATA Reporting Management Views MiLEAP agrees with the finding. Planned Corrective Action MiLEAP implemented a process for FFATA reporting in September 2025 and also hired additional staff in fiscal year 2026 who are responsible for reporting r...

Finding 2025-034 CCDF Cluster, ALN 93.575 and 93.596 - FFATA Reporting Management Views MiLEAP agrees with the finding. Planned Corrective Action MiLEAP implemented a process for FFATA reporting in September 2025 and also hired additional staff in fiscal year 2026 who are responsible for reporting required FFATA data for all federal grants to ensure subaward information is reported timely. Anticipated Completion Date Completed Responsible Individual(s) Lora MacKay, MiLEAP Dawn Lake, MiLEAP

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Finding 1218550 (2025-033)

Material Weakness 2025

State of Michigan

MI

Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles

Finding 2025-033 CCDF Cluster, ALN 93.575 and 93.596 - Provider Health and Safety Requirements Management Views MiLEAP agrees with the finding. Planned Corrective Action To improve compliance and inspection timeliness, MiLEAP will take the following key steps: • Enhanced regional oversight: The Chil...

Finding 2025-033 CCDF Cluster, ALN 93.575 and 93.596 - Provider Health and Safety Requirements Management Views MiLEAP agrees with the finding. Planned Corrective Action To improve compliance and inspection timeliness, MiLEAP will take the following key steps: • Enhanced regional oversight: The Child Care Licensing Bureau (CCLB) will utilize monitoring features within the Child Care Hub Information Records Portal (CCHIRP) to proactively track inspection due dates and identify providers approaching annual inspection deadlines. Consultants, lead workers, and area managers will utilize automated reporting dashboards and task notifications to monitor upcoming inspections and overdue activities in real time. CCLB will establish standardized supervisory review procedures by November 30, 2026, requiring regional management to review inspection completion status on a monthly basis to ensure timely intervention when inspections are at risk of exceeding the required timeframe. In addition, CCLB leadership will monitor statewide inspection completion rates, overdue inspections, and regional trends through recurring data reviews to identify systemic issues and implement timely corrective actions. • Ongoing Technology and Process Improvements: CCLB will continue enhancing the functionality and oversight capabilities within CCHIRP to ensure the system supports current, efficient, and effective inspection processes. Ongoing system improvements will focus on strengthening workflow management, maintaining up-to-date task guidance and tracking mechanisms, and improving the accuracy and visibility of inspection timelines and required activities. Anticipated Completion Date Ongoing Responsible Individual(s) Courtney Adams, MiLEAP Scott Bettys, MiLEAP Erika Bigelow, MiLEAP Monica Sturdivant, MiLEAP

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Finding 1218549 (2025-032)

Material Weakness 2025

State of Michigan

MI

Matching / Level of Effort / Earmarking § 200.516

Finding 2025-032 CCDF Cluster, ALN 93.575 and 93.596 - Client Eligibility Management Views MiLEAP and MDHHS agree with the finding. Planned Corrective Action MiLEAP and MDHHS ESA will continue to work together to help ensure compliance with client eligibility requirements by providing guidance on up...

Finding 2025-032 CCDF Cluster, ALN 93.575 and 93.596 - Client Eligibility Management Views MiLEAP and MDHHS agree with the finding. Planned Corrective Action MiLEAP and MDHHS ESA will continue to work together to help ensure compliance with client eligibility requirements by providing guidance on updated policies, processes and noted trends to local office and BSC staff. To increase subject-matter proficiency and improve consistency in eligibility determinations, MDHHS plans to begin implementing a Child Development and Care specialized staffing model within the Universal Case Load system statewide in July 2026. MDHHS Child Development and Care specialized staff will continue to utilize the Child Development and Care eligibility checklist for applications and redeterminations, and MDHHS will begin implementing a statewide review process based on identified errors by July 2026. MDHHS, in collaboration with MiLEAP, will continue to meet weekly to review common errors and root causes, address trends and questions received through the Child Development and Care Policy mailbox, and identify improvement and adjustment strategies. Anticipated Completion Date Ongoing Responsible Individual(s) Lisa Brewer-Walraven, MiLEAP Mariah Schaefer, MDHHS Gayle Vail, MDHHS

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Finding 1218548 (2025-010)

Material Weakness 2025

State of Michigan

MI

Internal Control / Segregation of Duties § 200.303

Finding 2025-010 MDE, Change Management Process Management Views MDE partially agrees with the finding. MDE agrees that testing results were not fully documented. However, MDE does not agree that post implementation validation could be performed. The scan-vulnerability process could not be performed...

Finding 2025-010 MDE, Change Management Process Management Views MDE partially agrees with the finding. MDE agrees that testing results were not fully documented. However, MDE does not agree that post implementation validation could be performed. The scan-vulnerability process could not be performed in the production environment in this instance without significantly impacting system performance for users, making post implementation validation infeasible. Planned Corrective Action MDE management will review the testing documentation maintained in DevOps for all tickets classified as tasks and associated with change management activities and deployments and will remind staff of the required documentation standards for all DevOps tickets linked to a deployment. Additionally, MDE will evaluate whether an alternative method of validating the scan-vulnerability process in production is feasible. If no alternative method is identified, MDE will document that post implementation validation cannot be performed due to system constraints. Anticipated Completion Date December 31, 2026 Responsible Individual(s) Monica Butler, MDE

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Finding 1218547 (2025-009)

Material Weakness 2025

State of Michigan

MI

Subrecipient Monitoring Cash Management Internal Control / Segregation of Duties § 200.303

Finding 2025-009 MDE, Security Management and Access Controls Management Views MDE agrees with the finding. Planned Corrective Action For part a., management will review the exceptions with the team responsible for processing security forms to reinforce appropriate review and processing. MDE will al...

Finding 2025-009 MDE, Security Management and Access Controls Management Views MDE agrees with the finding. Planned Corrective Action For part a., management will review the exceptions with the team responsible for processing security forms to reinforce appropriate review and processing. MDE will also implement an automated security access request process, which will eliminate any human error as a result of processing forms. For part b., management will refine the NexSys annual recertification process to reduce errors. NexSys staff will improve internal user list reviews and confirm completeness during the upcoming recertification cycle prior to management’s final review. MDE is currently developing an automated process to handle the annual recertification of the Grant Electronic Monitoring System/Michigan Administrative Review System (GEMS/MARS) users and anticipates implementation in September 2026. For part c., MDE updated the procedure for disabling accounts in April 2026 to strengthen and clarify the process to ensure MDE disables inactive user accounts after 18 months. Anticipated Completion Date a. May 2027 b. NexSys: October 2026 GEMS/MARS: September 2026 c. Completed Responsible Individual(s) Monica Butler, MDE Joshua Long, MDE Drew Finkbeiner, MDE

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Finding 1218543 (2025-001)

Material Weakness 2025

State of Michigan

MI

Subrecipient Monitoring Internal Control / Segregation of Duties

Finding 2025-001 SIGMA High-Risk Activity Monitoring Management Views The Michigan Department of Lifelong Education, Advancement, and Potential (MiLEAP) agrees with the finding. Planned Corrective Action MiLEAP started monitoring its high-risk activity report weekly to ensure users performed only au...

Finding 2025-001 SIGMA High-Risk Activity Monitoring Management Views The Michigan Department of Lifelong Education, Advancement, and Potential (MiLEAP) agrees with the finding. Planned Corrective Action MiLEAP started monitoring its high-risk activity report weekly to ensure users performed only authorized override actions in SIGMA beginning June 20, 2025. Anticipated Completion Date Completed Responsible Individual(s) Lora MacKay, MiLEAP Dawn Lake, MiLEAP Erica Nowland, MiLEAP

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Finding 1218522 (2025-063)

Material Weakness 2025

State of Michigan

MI

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

Finding 2025-063 Special Education Cluster (IDEA), ALN 84.027 and 84.173 Management Views MDE disagrees with the finding. MDE maintains that its current monitoring approach satisfies federal requirements. The MDE Office of Special Education’s (OSE) monitoring framework is consistent with the risk-ba...

Finding 2025-063 Special Education Cluster (IDEA), ALN 84.027 and 84.173 Management Views MDE disagrees with the finding. MDE maintains that its current monitoring approach satisfies federal requirements. The MDE Office of Special Education’s (OSE) monitoring framework is consistent with the risk-based requirements of the Uniform Guidance (2 CFR 200.332). The Uniform Guidance does not require routine review of underlying supporting documentation for every subrecipient in every monitoring cycle. Rather, source documentation review is one available monitoring tool, which MDE OSE uses, when warranted, based on risk, audit results, identified concerns, or other relevant information. MDE OSE’s monitoring activities include budget review and approval, budget-to-actual analysis, review of expenditure activity, direct engagement and technical assistance with subrecipients, review of single audit reports, issuance of management decisions (when applicable), and enhanced review procedures for higher-risk subrecipients. These activities collectively provide reasonable assurance that funds are used for authorized purposes and in compliance with applicable requirements. MDE OSE also notes that subrecipient single audits have not routinely identified questioned costs or significant noncompliance, which supports the effectiveness of the existing monitoring framework. Planned Corrective Action MDE disagrees with the finding and does not believe corrective action is required to resolve noncompliance. However, MDE OSE will update its internal monitoring procedures to document the circumstances under which expenditure sampling may be performed for medium- and low-risk subrecipients to enhance clarity of MDE OSE procedures. Anticipated Completion Date September 30, 2026 Responsible Individual(s) Sean McLaughlin, MDE

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