Corrective Action Plans

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Inadequate 1505-029 Reporting Controls - HAF - Commerce - The Montana Department of Commerce updated the Homeowners Assistance Fund reporting procedure to strengthen internal controls by requiring supervisory verification of all quarterly and annual reports. These updates ensure all reports are comp...
Inadequate 1505-029 Reporting Controls - HAF - Commerce - The Montana Department of Commerce updated the Homeowners Assistance Fund reporting procedure to strengthen internal controls by requiring supervisory verification of all quarterly and annual reports. These updates ensure all reports are complete, accurate, and fully documented prior to submission. Responsible Party - Ingrid Mallo, Chief Financial Officer, Montana Department of Commerce Target Implementation Date - 7/1/2026
Noncompliant Certified Payrolls - HPC - MDT - The Montana Department of Transportation partially concurs that there are late certified payrolls. To verify whether a certified payroll is warranted, contractor records—such as payroll cycle dates and corresponding Daily Work Report entries—must be revi...
Noncompliant Certified Payrolls - HPC - MDT - The Montana Department of Transportation partially concurs that there are late certified payrolls. To verify whether a certified payroll is warranted, contractor records—such as payroll cycle dates and corresponding Daily Work Report entries—must be reviewed. Comparing datasets can help identify items needing further examination, but an analytical review alone cannot determine whether a certified payroll is late. Each contractor follows its own payroll cycle, and federal requirements must be applied to the circumstances of each contractor. This concern was raised multiple times, and while some issues were addressed, the additional review needed to confirm the accuracy of the identified noncompliance remains unresolved. In communication with the department, the auditor stated that “we will never arrive at an exact number we can all agree on due to gaps in Daily Work Report data and an uncertain measurement metric.” This acknowledgment calls into question the reliability of the projected late payment rate and indicates the need for additional procedures to validate the assumptions and methodology used in the analytical review. The department manually recalculated the contractor identified as having the highest number of late submissions. This review resulted in a rate 47.53 percent lower than the auditor’s calculation; however, the auditor did not revise the analysis. This recalculation reflects only one contractor, and reviewing the remaining contractors would likely further reduce the overall percentage. The department will continue strengthening internal controls on overdue payrolls. The original payroll withholding specification lacked a standard calculation method, which led to inconsistent practices among project managers. The Contract Administration Section developed a standardized deduction table based on the awarded contract amount to ensure consistent application statewide. Specification language was also revised for clarity. Additionally, the Contract Administration Section developed a monthly overdue payroll report that will be sent to project managers around the fifteenth of each month. This report will help identify and address overdue payrolls before the monthly estimate cycle ends. The department will continue monitoring overdue payrolls, ensuring proper withholding on estimates, and providing guidance and additional training to project staff. A guide has also been provided to help staff document communication with contractors and apply correct withholding. Responsible Party - Kimberly Doherty, Accounting Systems Supervisor, Montana Department of Transportation Dustin Rouse, Chief Engineer, Montana Department of Transportation Target Implementation Date - 12/31/2026
Inadequate User Access Reviews - HPC - MDT - The Montana Department of Transportation has implemented a security review for AASTHOWare to ensure compliance in 2026. Responsible Party - Kimberly Doherty, Accounting Systems Supervisor, Montana Department of Transportation Dustin Rouse, Chief Engineer,...
Inadequate User Access Reviews - HPC - MDT - The Montana Department of Transportation has implemented a security review for AASTHOWare to ensure compliance in 2026. Responsible Party - Kimberly Doherty, Accounting Systems Supervisor, Montana Department of Transportation Dustin Rouse, Chief Engineer, Montana Department of Transportation Target Implementation Date - 12/31/2026
Inadequate Controls Over Indirect Cost Rate Proposals - HPC - MDT - The Montana Department of Transportation has updated its procedures and checklist to ensure required submittals are received on time. These updates were in effect for the 2026 rate. Responsible Party - Kimberly Doherty, Accounting S...
Inadequate Controls Over Indirect Cost Rate Proposals - HPC - MDT - The Montana Department of Transportation has updated its procedures and checklist to ensure required submittals are received on time. These updates were in effect for the 2026 rate. Responsible Party - Kimberly Doherty, Accounting Systems Supervisor, Montana Department of Transportation Dustin Rouse, Chief Engineer, Montana Department of Transportation Target Implementation Date - 12/31/2026
Inadequate Procurement Documentation - HPC - MDT - The Montana Department of Transportation has developed a tracking spreadsheet for independent cost estimates and will continue to provide reminders and training through 2026. The department will update its procedures to ensure documentation for susp...
Inadequate Procurement Documentation - HPC - MDT - The Montana Department of Transportation has developed a tracking spreadsheet for independent cost estimates and will continue to provide reminders and training through 2026. The department will update its procedures to ensure documentation for suspension and debarment checks and cost estimates is retained in consultant files. Responsible Party - Kimberly Doherty, Accounting Systems Supervisor, Montana Department of Transportation Dustin Rouse, Chief Engineer, Montana Department of Transportation Target Implementation Date - 12/31/2026
Noncompliant Risk Assessments - Foster Care - DPHHS - The Montana Department of Public Health and Human Services implemented a new risk assessment format and policy and procedure in June 2024. The department is following the new process, which was fully implemented in June 2024; the subrecipient ris...
Noncompliant Risk Assessments - Foster Care - DPHHS - The Montana Department of Public Health and Human Services implemented a new risk assessment format and policy and procedure in June 2024. The department is following the new process, which was fully implemented in June 2024; the subrecipient risk assessments cited in the finding were performed before that date. Responsible Party - Brenda Crawford, Internal Control and Compliance Officer, Montana Department of Public Health and Human Services Target Implementation Date - 7/25/2024
Inadequate Supporting Documentation - Foster Care - DPHHS - The Montana Department of Public Health and Human Services reviewed the fiscal year 2024 payment error and will address the affected reimbursement. The department will continue applying its improved internal control procedures to ensure com...
Inadequate Supporting Documentation - Foster Care - DPHHS - The Montana Department of Public Health and Human Services reviewed the fiscal year 2024 payment error and will address the affected reimbursement. The department will continue applying its improved internal control procedures to ensure compliance. Responsible Party - Brenda Crawford, Internal Control and Compliance Officer, Montana Department of Public Health and Human Services Target Implementation Date - 7/1/2024
Noncompliant FFATA Reports - Foster Care - DPHHS - The Montana Department of Public Health and Human Services partially concurs. The department agrees that internal control deficiencies existed in its subaward reporting processes under the Federal Funding Accountability and Transparency Act (FFATA) ...
Noncompliant FFATA Reports - Foster Care - DPHHS - The Montana Department of Public Health and Human Services partially concurs. The department agrees that internal control deficiencies existed in its subaward reporting processes under the Federal Funding Accountability and Transparency Act (FFATA) during fiscal years 2024 and 2025, and that instances of noncompliance occurred. The department does not concur with the quantified extent of the exceptions, including report counts and reporting figures. The department has been unable to replicate the amounts noted and did not receive sufficient detail, as outlined in 2 CFR 200.516(b), to fully understand the specific errors identified. In response to a prior audit recommendation, the department implemented corrective actions to strengthen its internal controls and review processes. These actions included enhanced oversight and the identification and correction of duplicate and inaccurate records. Many of these duplication issues originated from data quality challenges within the former federal reporting system. When the federal reporting system transitioned to the System for Award Management in state fiscal year 2026, many of those data quality concerns were eliminated. The department corrected most of the duplicated and inaccurate records that migrated from the former system to the new one. The department also enhanced its internal controls and revised its policies and procedures for reporting under FFATA. Responsible Party - Brenda Crawford, Internal Control and Compliance Officer, Montana Department of Public Health and Human Services Target Implementation Date - 7/1/2025
Inadequate Supporting Documentation - Transit - MDT - The Montana Department of Transportation’s Transit Section will continue working closely with subrecipients to ensure proper documentation is consistently provided and retained. The fully staffed Transit Section is reviewing reimbursement submiss...
Inadequate Supporting Documentation - Transit - MDT - The Montana Department of Transportation’s Transit Section will continue working closely with subrecipients to ensure proper documentation is consistently provided and retained. The fully staffed Transit Section is reviewing reimbursement submissions more thoroughly, reinforcing documentation expectations and strengthening the department’s internal controls. Cost principle training is now part of the onboarding process for Transit Section staff, and additional training will be provided as new regulations or guidance become available. Responsible Party - Kimberly Doherty, Accounting Systems Supervisor, Montana Department of Transportation Target Implementation Date - 12/31/2026
Inadequate Subrecipient Communications and Controls - Transit - MDT - The Montana Department of Transportation’s Transit Section has established deadlines to ensure all agreements are fully executed before the start of the period of performance and prior to authorizing any payments. These measures r...
Inadequate Subrecipient Communications and Controls - Transit - MDT - The Montana Department of Transportation’s Transit Section has established deadlines to ensure all agreements are fully executed before the start of the period of performance and prior to authorizing any payments. These measures reinforce clear communication of requirements and support continued compliance with federal regulations. Responsible Party - Kimberly Doherty, Accounting Systems Supervisor, Montana Department of Transportation Target Implementation Date - 12/31/2026
Inadequate Suspension and Debarment Verifications - Transit - MDT - The Montana Department of Transportation concurs with the finding. A. The Transit Section and Procurement Unit are jointly developing comprehensive procedures that clearly define roles and responsibilities, update procurement checkl...
Inadequate Suspension and Debarment Verifications - Transit - MDT - The Montana Department of Transportation concurs with the finding. A. The Transit Section and Procurement Unit are jointly developing comprehensive procedures that clearly define roles and responsibilities, update procurement checklists, and establish a centralized location for maintaining complete procurement files. These updated procedures will be completed by the end of calendar year 2026. B. The Procurement Unit and the Legal Office began working together in July 2026 to review all templates, clauses, and federal requirements. This review will be ongoing to ensure compliance with all state and federal regulations. Responsible Party - Kimberly Doherty, Accounting Systems Supervisor, Montana Department of Transportation Target Implementation Date - 12/31/2026
Inadequate Subrecipient Equipment Use and Disposal Procedures - Transit - MDT - The Montana Department of Transportation concurs with the finding. A. The department will continue enhancing its disposal procedures. The Transit Section is now fully staffed and is working through the backlog of disposi...
Inadequate Subrecipient Equipment Use and Disposal Procedures - Transit - MDT - The Montana Department of Transportation concurs with the finding. A. The department will continue enhancing its disposal procedures. The Transit Section is now fully staffed and is working through the backlog of disposition requests, which is expected to be resolved by the end of calendar year 2026. A system issue that prevented the disposition vehicle report from capturing all submitted vehicles was corrected with the June 2025 BlackCat update. The Transit Section was aware of vehicle records requiring a full audit and continues to work on this project. B. Disposal instructions have been prepared and are available in BlackCat for subrecipients to reference. C. The Transit Section will continue working through the inventory cleanup and expects to complete this work by the end of state fiscal year 2027. This cleanup is being conducted in conjunction with the migration from BlackCat to the B2G platform. Responsible Party - Kimberly Doherty, Accounting Systems Supervisor, Montana Department of Transportation Target Implementation Date - 6/30/2027
Inadequate Subrecipient Audit Monitoring - Transit - MDT - The Montana Department of Transportation concurs with the finding. A. The department is strengthening its evaluation of subrecipient Single Audit requirements by integrating external data sources into its verification process. When external ...
Inadequate Subrecipient Audit Monitoring - Transit - MDT - The Montana Department of Transportation concurs with the finding. A. The department is strengthening its evaluation of subrecipient Single Audit requirements by integrating external data sources into its verification process. When external sources do not show audit activity for a subrecipient, the department will request and document confirmation through email to verify audit status. For the state fiscal year 2027 grant cycle, the Transit Section has implemented a process to email each subrecipient to confirm Single Audit eligibility, and beginning in state fiscal year 2028, this certification will be included in the application packet. The department established a subrecipient team prior to this audit to oversee recipients of federal funds, determine Single Audit applicability, and assess whether identified issues warrant additional monitoring. The Global Accountant coordinates these reviews, and new procedures are being introduced to address identified issues and ensure consistent application of federal requirements. B. The Transit Section has instituted an application review tracking sheet beginning in state fiscal year 2027 to ensure fiscal and programmatic components are reviewed by the appropriate staff. This measure improves documentation, accountability, and internal monitoring. C. The department is developing a revised subrecipient risk assessment that incorporates information provided by subrecipients, applies clearer criteria for identifying higher-risk entities, and aligns risk-reducing factors with elements that directly reduce the likelihood of undetected material noncompliance. As part of this effort, the department will establish and document procedures that clearly outline federal requirements for issuing management decisions to ensure they consistently contain all required elements. The revised assessment and associated procedures will be implemented for state fiscal year 2028 applications during the state fiscal year 2027 cycle. Responsible Party - Kimberly Doherty, Accounting Systems Supervisor, Montana Department of Transportation Target Implementation Date - 12/31/2026
Noncompliance with Subrecipient Monitoring Requirements - Transit - MDT - The Montana Department of Transportation is developing a revised subrecipient risk assessment that incorporates information provided by subrecipients, applies clearer criteria for identifying higher-risk entities, and aligns r...
Noncompliance with Subrecipient Monitoring Requirements - Transit - MDT - The Montana Department of Transportation is developing a revised subrecipient risk assessment that incorporates information provided by subrecipients, applies clearer criteria for identifying higher-risk entities, and aligns risk-reducing factors with elements that directly decrease the likelihood of undetected material noncompliance. The revised assessment will be implemented for state fiscal year 2028 applications during the state fiscal year 2027 cycle. The Transit Section has also instituted an application review tracking sheet beginning in state fiscal year 2027 to ensure fiscal and programmatic components are reviewed by the appropriate staff. This measure improves documentation, accountability, and internal monitoring. The department will continue refining and strengthening these processes to ensure consistent, accurate, and compliance-focused risk assessments going forward. Responsible Party - Kimberly Doherty, Accounting Systems Supervisor, Montana Department of Transportation Target Implementation Date - 12/31/2026
Noncompliant FFATA Reports - ELC- DPHHS - The Montana Department of Public Health and Human Services partially concurs. The department agrees that internal control deficiencies existed in its subaward reporting processes under the Federal Funding Accountability and Transparency Act (FFATA) during fi...
Noncompliant FFATA Reports - ELC- DPHHS - The Montana Department of Public Health and Human Services partially concurs. The department agrees that internal control deficiencies existed in its subaward reporting processes under the Federal Funding Accountability and Transparency Act (FFATA) during fiscal years 2024 and 2025, and that instances of noncompliance occurred. The department does not concur with the quantified extent of the exceptions, including report counts and reporting figures. The department has been unable to replicate the amounts noted and did not receive sufficient detail, as outlined in 2 CFR 200.516(b), to fully understand the specific errors identified. In response to a prior audit recommendation, the department implemented corrective actions to strengthen its internal controls and review processes. These actions included enhanced oversight and the identification and correction of duplicate and inaccurate records. Many of these duplication issues originated from data quality challenges within the former federal reporting system. Responsible Party - Brenda Crawford, Internal Control and Compliance Officer, Montana Department of Public Health and Human Services Target Implementation Date - 7/1/2025
Inadequate Subrecipient Monitoring Controls - ELC - DPHHS - The Montana Department of Public Health and Human Services has implemented a new risk-assessment template and created additional tools to document subrecipient monitoring activities in state fiscal year 2025. The department has also updated...
Inadequate Subrecipient Monitoring Controls - ELC - DPHHS - The Montana Department of Public Health and Human Services has implemented a new risk-assessment template and created additional tools to document subrecipient monitoring activities in state fiscal year 2025. The department has also updated its policies and procedures. The department will continue to review and enhance its subaward processes to ensure full compliance. Responsible Party - Brenda Crawford, Internal Control and Compliance Officer, Montana Department of Public Health and Human Services Target Implementation Date - 6/30/2025
Inadequate Supporting Documentation - ELC - DPHHS - The Montana Department of Public Health and Human Services established a procedure and a shared location for project documentation in 2023. The department will verify compliance through periodic reviews to ensure it is used. In addition, management...
Inadequate Supporting Documentation - ELC - DPHHS - The Montana Department of Public Health and Human Services established a procedure and a shared location for project documentation in 2023. The department will verify compliance through periodic reviews to ensure it is used. In addition, management will periodically remind staff of the procedures for storing all files in the designated shared location. Responsible Party - Brenda Crawford, Internal Control and Compliance Officer, Montana Department of Public Health and Human Services Target Implementation Date - 8/21/2026
Inadequate Suspension and Debarment Verifications - SLFRF, ELC - DOA - The Montana Department of Administration Architecture and Engineering Division will incorporate the requirements of Title 2 Code of Federal Regulations sections 180.300(b) and 180.300(c) into its control processes for architectur...
Inadequate Suspension and Debarment Verifications - SLFRF, ELC - DOA - The Montana Department of Administration Architecture and Engineering Division will incorporate the requirements of Title 2 Code of Federal Regulations sections 180.300(b) and 180.300(c) into its control processes for architecture and engineering firm procurements. This will align these controls with those used for construction contract procurements and will include verification of application submissions and verification of contractual obligations. The division considers the risk associated with this issue to be extremely low because no Montana architecture or engineering firm appears as debarred or suspended in the federal System for Award Management database. Responsible Party - Russell Katherman, Administrator of Architecture and Engineering , Montana Long Range Building, Montana Department of Administration Target Implementation Date - 8/26/2026
Noncompliant Equipment and Construction Controls – ESSER – OPI - The Montana Office of Public Instruction notes that the grant is closed and the temporary grant-funded staff are no longer with the agency. Moving forward, new grant managers will have better direction on the agency’s internal controls...
Noncompliant Equipment and Construction Controls – ESSER – OPI - The Montana Office of Public Instruction notes that the grant is closed and the temporary grant-funded staff are no longer with the agency. Moving forward, new grant managers will have better direction on the agency’s internal controls. Responsible Party - April Grady, Chief Financial Officer, Montana Office of Public Instruction Target Implementation Date - 9/30/2026
Noncompliant Duplicate Expenditure Recording - ESSER - OPI - The Montana Office of Public Instruction concurs with this finding. The Office has created a procurement unit to ensure contract terms meet program needs. The Office has also implemented approval workflows for contract funding to ensure bu...
Noncompliant Duplicate Expenditure Recording - ESSER - OPI - The Montana Office of Public Instruction concurs with this finding. The Office has created a procurement unit to ensure contract terms meet program needs. The Office has also implemented approval workflows for contract funding to ensure budgets are aligned before contracts are executed. Internal controls between procurement, programs, and accounting will continue to be strengthened to prevent future overpayments. The grant is closed, and the temporary grant-funded staff are no longer with the agency. Moving forward, new grant managers will receive clearer direction on the agency’s internal controls. Responsible Party - April Grady, Chief Financial Officer, Montana Office of Public Instruction Target Implementation Date - 12/31/2026
Noncompliant Contractor Overpayments and Unallowable Charges - ESSER - OPI - The Montana Office of Public Instruction concurs with this finding. The Office and the University of Montana - Western established a teacher residency program originally funded with Elementary and Secondary School Emergency...
Noncompliant Contractor Overpayments and Unallowable Charges - ESSER - OPI - The Montana Office of Public Instruction concurs with this finding. The Office and the University of Montana - Western established a teacher residency program originally funded with Elementary and Secondary School Emergency Relief funds. The agreement set a fixed amount per student, but the University billed the Office for fringe benefits for each participant, which caused total costs to exceed the contract amount. The current agreement and program structure have been updated to prevent this issue. The Office has created a procurement unit to ensure contract terms support program needs. The Office has also implemented approval workflows for contract funding to confirm that budgets are aligned before agreements are executed. Internal controls between procurement, programs, and accounting will continue to be strengthened to prevent future overpayments. Responsible Party - April Grady, Chief Financial Officer, Montana Office of Public Instruction Target Implementation Date - 12/31/2026
Noncompliant Direct and Indirect Cost Charges - ESSER - OPI - The Montana Office of Public Instruction partially concurs with this finding. Spreadsheets supporting items 0005169673 and 0005227738 were provided to the Legislative Audit Division on August 11, 2026. The Central Services Division spent ...
Noncompliant Direct and Indirect Cost Charges - ESSER - OPI - The Montana Office of Public Instruction partially concurs with this finding. Spreadsheets supporting items 0005169673 and 0005227738 were provided to the Legislative Audit Division on August 11, 2026. The Central Services Division spent direct time on the Elementary and Secondary School Emergency Relief (ESSER) reporting, and those hours were charged directly to that program. Administrative and management staff also spent time preparing reports for quarterly briefings, presentations to community partners, responses to school and community inquiries, and newsletter submissions. The Office charged those hours to the ESSER program as they were directly related to the required reporting. However, the Office concurs with the questioned indirect cost charges in addition to personal services. The Office has implemented a tracking mechanism to ensure appropriate time reporting. For fiscal year 2027, the Office has added a monthly review of each federal budget to confirm that time reported aligns with the expected and allocated time for each project. Responsible Party - April Grady, Chief Financial Officer, Montana Office of Public Instruction Target Implementation Date - 12/31/2026
Noncompliant Annual Reporting Controls - ESSER - OPI - The Montana Office of Public Instruction concurs with the finding. The grant is closed, and the temporary grant-funded staff are no longer with the agency. Moving forward, new grant managers will receive clearer direction on the agency’s interna...
Noncompliant Annual Reporting Controls - ESSER - OPI - The Montana Office of Public Instruction concurs with the finding. The grant is closed, and the temporary grant-funded staff are no longer with the agency. Moving forward, new grant managers will receive clearer direction on the agency’s internal controls. Responsible Party - April Grady, Chief Financial Officer, Montana Office of Public Instruction Target Implementation Date - 12/31/2026
Inadequate Support for Federal Reimbursement - ESSER - OPI - The Montana Office of Public Instruction has already implemented more stringent criteria for cash requests from schools. Although this has created additional burden for local education agencies, the Office has remained firm on the informat...
Inadequate Support for Federal Reimbursement - ESSER - OPI - The Montana Office of Public Instruction has already implemented more stringent criteria for cash requests from schools. Although this has created additional burden for local education agencies, the Office has remained firm on the information required. These criteria were implemented in late 2024 and have been required since that time. Cash requests are audited quarterly by the Internal Control Auditor against the budget documents submitted, and any issues identified are addressed. No further action is needed other than continuing the current process. Responsible Party - April Grady, Chief Financial Officer, Montana Office of Public Instruction Target Implementation Date - 12/31/2026
Noncompliant FFATA Reports - ESSER - OPI - The Montana Office of Public Instruction concurs with this finding. This grant is closed. For all future reporting under the Federal Funding Accountability and Transparency Act, the Office will update internal guidance to align with federal regulations and ...
Noncompliant FFATA Reports - ESSER - OPI - The Montana Office of Public Instruction concurs with this finding. This grant is closed. For all future reporting under the Federal Funding Accountability and Transparency Act, the Office will update internal guidance to align with federal regulations and federal oversight requirements. The Office will ensure that required documentation is maintained and that reconciliations verify values in USAspending and SAM. Responsible Party - April Grady, Chief Financial Officer, Montana Office of Public Instruction Target Implementation Date - 12/31/2026
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