Corrective Action Plans

Finding 540677 (2024-026)

Material Weakness 2024

NH

Subrecipient Monitoring § 200.332 § 200.521

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 93.778 Opioid STR State Agency: Department of Health and Human Services (DHHS) Audit Contact: Melissa Kelleher and Kyra Leonard Title: Grants Administrator of Bureau of Contracts and Procurement and Finance Director of DBH Telephone: 603...

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 93.778 Opioid STR State Agency: Department of Health and Human Services (DHHS) Audit Contact: Melissa Kelleher and Kyra Leonard Title: Grants Administrator of Bureau of Contracts and Procurement and Finance Director of DBH Telephone: 603-271-9637 and 603-271-5052 E-mail address: Melissa.J.Kelleher@dhhs.nh.gov and Kyra.C.Leonard@dhhs.nh.gov Audit Report Reference: 2024-026 – Subrecipient Monitoring Anticipated Completion Date: Complete Corrective Action Planned: A. We concur. The subawards in question were contracts originally approved by Governor and Council prior to the Department adding the indirect cost rate notification to the contract template in April 2020. This finding has been resolved. B. We do not concur. Risk Assessment Tool used in 2020 states that no additional monitoring is required based on the answers in the Tool. Further, we did not utilize to the Tool to communicate the monitoring activities to the Contracts Unit at that time, rather this was completed via email. The Subrecipient Monitoring policy in effect during 2020 only required that the monitoring activities were communicated to Contracts. The policy did not require a specific method.

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Finding 540674 (2024-025)

Material Weakness 2024

State of New Hampshire

NH

Subrecipient Monitoring § 200.332 § 200.521

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 CCDF Cluster (ALN #93.489, #93.575, #93.596) and COVID-19 CCDF Cluster (ALN #93.489, #93.575, #93.596) State Agency: Department of Health and Human Services (DHHS) Audit Contact: Shannon Winn Title: BCDHSC Finance Manager Telephone: 603-...

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 CCDF Cluster (ALN #93.489, #93.575, #93.596) and COVID-19 CCDF Cluster (ALN #93.489, #93.575, #93.596) State Agency: Department of Health and Human Services (DHHS) Audit Contact: Shannon Winn Title: BCDHSC Finance Manager Telephone: 603-271-9663 E-mail address: Shannon.S.Winn@dhhs.nh.gov Audit Report Reference: 2024-025 – Subrecipient Monitoring Anticipated Completion Date: June 30, 2025 Corrective Action Planned: We currently review all the expense details submitted on a monthly basis for our sub-recipients and have program review that the reporting and expense details support the sub-recipients work. However, we did not properly document the procedures that were performed. We have implemented a procedure of direct review of all sub-recipients to include receiving supporting and reviewing documentation, monitoring spends of awarded funds, and working directly with program to ensure the sub-recipient work is being monitored and supports the scope. We will put a procedure in place to establish the necessary monitoring at the start of each FY by utilizing the RAT that sets a minimum standard.

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Finding 540671 (2024-024)

Material Weakness 2024

State of New Hampshire

NH

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 CCDF Cluster (ALN #93.489, #93.575, #93.596) and COVID-19 Cluster (ALN #93.489, #93.575, #93.596) State Agency: Department of Health and Human Services (DHHS) Audit Contact: Hannah Glines and Melissa Kelleher Title: Revenue Director and ...

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 CCDF Cluster (ALN #93.489, #93.575, #93.596) and COVID-19 Cluster (ALN #93.489, #93.575, #93.596) State Agency: Department of Health and Human Services (DHHS) Audit Contact: Hannah Glines and Melissa Kelleher Title: Revenue Director and Grants Administrator of Bureau of Contracts and Procurement Telephone: 603-271-9043 and 603-271-9637 E-mail address: Hannah.J.Glines@dhhs.nh.gov and Melissa.J.Kelleher@dhhs.nh.gov Audit Report Reference: 2024-024 – Reporting - FFATA Anticipated Completion Date: September 30, 2025 Corrective Action Planned: FFATA procedures will be reviewed and strengthened to ensure adequate controls are in place. This will include training other members of the federal reporting staff so that there is sufficient separation of duties for preparation, review, approval, and timely submittal of the reports. The contracts were all in process prior to the April 4, 2022, inception of the UEI, and had been prepared with the DUNS number. However, the appropriate UEI was obtained to perform the required FFATA reporting requirements using SAM.GOV.

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Finding 540670 (2024-023)

Material Weakness 2024

State of New Hampshire

NH

Cash Management Subrecipient Monitoring § 200.204 § 200.305

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 93.568 Low-Income Home Energy Assistance State Agency: Department of Energy Audit Contact: Leonard Rautio Title: Chief of Operations Telephone: (603) 271-6008 E-mail address: leonard.j.rautio1@energy.nh.gov Audit Report Reference: 2024-...

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 93.568 Low-Income Home Energy Assistance State Agency: Department of Energy Audit Contact: Leonard Rautio Title: Chief of Operations Telephone: (603) 271-6008 E-mail address: leonard.j.rautio1@energy.nh.gov Audit Report Reference: 2024-023, 2023-014, 2022-027 – Cash Management Anticipated Completion Date: June 30, 2025 Corrective Action Planned: Concur The Department has eliminated giving program advances for program year 2025 (PY25) and reduced the amount of the administrative advances from 17.5% to 10% for PY25. The Department monitors monthly bank statements from the subrecipients to ensure there is little or no interest accrued from cash on hand. 2 CFR 200.305 (b)(1) does not limit cash on hand to 30 days but indicates that the timing and amount of advance payments must be as close as is administratively feasible to the actual disbursements by the subrecipient. Federal guidance to the Department indicates the Department is meeting that requirement. However, the Department will continue to review administrative advances and adjust the amounts to ensure subrecipient cash on hand is limited to a reasonable timeframe.

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Finding 540669 (2024-022)

Material Weakness 2024

State of New Hampshire

NH

Subrecipient Monitoring Reporting Allowable Costs / Cost Principles

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 93.568 Low-Income Home Energy Assistance State Agency: Department of Energy Audit Contact: Leonard Rautio Title: Chief of Operations Telephone: (603) 271-6008 E-mail address: leonard.j.rautio1@energy.nh.gov Audit Report Reference: 2024-...

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 93.568 Low-Income Home Energy Assistance State Agency: Department of Energy Audit Contact: Leonard Rautio Title: Chief of Operations Telephone: (603) 271-6008 E-mail address: leonard.j.rautio1@energy.nh.gov Audit Report Reference: 2024-022, 2023-016, 2022-026, 2021-028, 2021-029 - Reporting Anticipated Completion Date: Complete Corrective Action Planned: Concur The Department has implemented processes and updated procedures to mitigate late reporting or insufficient back-up data since the last finding. These processes have been implemented and personnel trained on the new procedures.

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Finding 540668 (2024-021)

Material Weakness 2024

State of New Hampshire

NH

Subrecipient Monitoring § 200.332 § 200.414 § 200.521

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 93.568 Low-Income Home Energy Assistance State Agency: Department of Energy Audit Contact: Leonard Rautio Title: Chief of Operations Telephone: (603) 271-6008 E-mail address: leonard.j.rautio1@energy.nh.gov Audit Report Reference: 2024-...

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 93.568 Low-Income Home Energy Assistance State Agency: Department of Energy Audit Contact: Leonard Rautio Title: Chief of Operations Telephone: (603) 271-6008 E-mail address: leonard.j.rautio1@energy.nh.gov Audit Report Reference: 2024-021, 2023-015, 2022-025,2021-027 – Subrecipient Monitoring Anticipated Completion Date: Complete Corrective Action Planned: Concur The Department has put into place processes and updated our procedures to prevent this from happening in the future. However, we were unable to change amendments that were completed prior to the implementation of these procedures. All new contracts and amendments since the change in procedures include the required information. The Department has made changes to processes and personnel to ensure the data compiled and utilized for the Annual Report on Households Assisted by LIHEAP is verified, complete, and accurate. While a federally approved third-party completed the report reviewed for this audit, the Department successfully completed the most recent Annual Household Report (due December 2024).

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Finding 540666 (2024-020)

Material Weakness 2024

State of New Hampshire

NH

Subrecipient Monitoring § 200.332 § 200.521

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) State Agency: Department of Health and Human Services (DHHS) Audit Contact: Richelle Swanson Title: DPHS Finance Director Telephone: 603-271-4613 E-mail address: R...

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) State Agency: Department of Health and Human Services (DHHS) Audit Contact: Richelle Swanson Title: DPHS Finance Director Telephone: 603-271-4613 E-mail address: Richelle.R.Swanson@dhhs.nh.gov Audit Report Reference: 2024-020, 2023-011, 2022-018, 2021-021 - Subrecipient Monitoring Anticipated Completion Date: June 30, 2025 Corrective Action Planned: We currently review all of the expense details submitted on a monthly basis for our sub-recipients. However, we did not properly document the procedures that were performed. We have implemented a financial monitoring checklist that will specify each procedure and include a date that it was completed on. We have submitted attestations verifying the procedures that took place in SFY2024.

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Finding 540664 (2024-019)

Material Weakness 2024

State of New Hampshire

NH

Reporting Internal Control / Segregation of Duties Subrecipient Monitoring

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) State Agency: Department of Health and Human Services (DHHS) Audit Contact: Richelle Swanson, Hannah Glines and Melissa Kelleher Title: DPHS Finance Director, Reve...

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) State Agency: Department of Health and Human Services (DHHS) Audit Contact: Richelle Swanson, Hannah Glines and Melissa Kelleher Title: DPHS Finance Director, Revenue Director and Administrator of Bureau of Contracts and Procurement Telephone: 603-271-4613, 603-271-9043 and 603-9637 E-mail address: Richelle.R.Swanson@dhhs.nh.gov , Hannah.J.Glines@dhhs.nh.gov and Melissa.J.Kelleher@dhhs.nh.gov Audit Report Reference: 2024-019, 2023-010 - Reporting Anticipated Completion Date: September 30, 2025 Corrective Action Planned: The reporting system’s information is retained on a year-to-date basis, erasing the prior amount and replacing it with the updated total. We have implemented a process to obtain the information needed to verify that the unliquidated obligation for the requested reporting period was properly reported. FFATA procedures will be reviewed and strengthened to ensure adequate controls are in place. This will include training other members of the federal reporting staff so that there is sufficient separation of duties for preparation, review, approval, and timely submittal of the reports. The contracts were all in process prior to the April 4, 2022, inception of the UEI, and had been prepared with the DUNS number. However, the appropriate UEI was obtained to perform the required FFATA reporting requirements using SAM.GOV.

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Finding 540662 (2024-018)

Material Weakness 2024

State of New Hampshire

NH

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 93.268 Immunization Cooperative Agreements and 93.268 COVID-19 Immunization Cooperative Agreements State Agency: Department of Health and Human Services (DHHS) Audit Contact: Hannah Glines and Melissa Kelleher Title: Revenue Director an...

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 93.268 Immunization Cooperative Agreements and 93.268 COVID-19 Immunization Cooperative Agreements State Agency: Department of Health and Human Services (DHHS) Audit Contact: Hannah Glines and Melissa Kelleher Title: Revenue Director and Grants Administrator of Bureau of Contracts and Procurement Telephone: 603-271-9043 and 603-271-9637 E-mail address: Hannah.J.Glines@dhhs.nh.gov and Melissa.J.Kelleher@dhhs.nh.gov Audit Report Reference: 2024-018 – Reporting - FFATA Anticipated Completion Date: September 30, 2025 Corrective Action Planned: FFATA procedures will be reviewed and strengthened to ensure adequate controls are in place. This will include training other members of the federal reporting staff so that there is sufficient separation of duties for preparation, review, approval, and timely submittal of the reports. The contracts were all in process prior to the April 4, 2022, inception of the UEI, and had been prepared with the DUNS number. However, the appropriate UEI was obtained to perform the required FFATA reporting requirements using SAM.GOV.

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Finding 540657 (2024-017)

Material Weakness 2024

State of New Hampshire

NH

Subrecipient Monitoring § 200.332 § 200.521

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 93.044, 93.045, 93.053 Aging Cluster State Agency: Department of Health and Human Services (DHHS) Audit Contact: Kyra Leonard Title: DBH & DLTSS Finance Director Telephone: 603-271-5052 E-mail address: Kyra.C.Leonard@dhhs.nh.gov Audit Re...

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 93.044, 93.045, 93.053 Aging Cluster State Agency: Department of Health and Human Services (DHHS) Audit Contact: Kyra Leonard Title: DBH & DLTSS Finance Director Telephone: 603-271-5052 E-mail address: Kyra.C.Leonard@dhhs.nh.gov Audit Report Reference: 2024-017 – Subrecipient Monitoring Anticipated Completion Date: June 30, 2025 Corrective Action Planned: The Team responsible for the risk assessments will be expanded moving forward to include a member of the Finance team with the intention to collaborate on inclusion of the necessary monitoring activities. Monitoring activities were completed; however, they were not appropriately documented at the time. Therefore, to record the review of the invoices, along with the monitoring activities outlined on the risk assessment, we have implemented a financial monitoring checklist that includes the risk assessment monitoring items. This checklist will specify each procedure and include a date that it was completed on.

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Finding 540652 (2024-016)

Material Weakness 2024

State of New Hampshire

NH

Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 93.044, 93.045, 93.053 Aging Cluster State Agency: Department of Health and Human Services (DHHS) Audit Contact: Kyra Leonard Title: DBH & DLTSS Finance Director Telephone: 603-271-5052 E-mail address: Kyra.C.Leonard@dhhs.nh.gov Audit R...

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 93.044, 93.045, 93.053 Aging Cluster State Agency: Department of Health and Human Services (DHHS) Audit Contact: Kyra Leonard Title: DBH & DLTSS Finance Director Telephone: 603-271-5052 E-mail address: Kyra.C.Leonard@dhhs.nh.gov Audit Report Reference: 2024-016 - Activities Allowed or Unallowed/Allowable Costs/Costs Principles Anticipated Completion Date: June 30, 2025 Corrective Action Planned: The Department recognizes the business rules currently in place in the Options Electronic Billing and Service Authorization Maintenance System does not necessitate certain allowability approvals before the expenses are submitted through NHFirst for payment. The Department will turn off the automatic interface between Options and NHFirst in order to review the expenses before payment is issued. The Department will implement the typical invoice review process based on reporting from the Options, including a checklist that will specify each procedure and include a date that it was completed on. Then the approved output will be entered into NHFirst for payment.

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Finding 540647 (2024-015)

Material Weakness 2024

State of New Hampshire

NH

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 93.044, 93.045, 93.053 Aging Cluster State Agency: Department of Health and Human Services (DHHS) Audit Contact: Hannah Glines and Melissa Kelleher Title: Revenue Director and Grants Administrator of Bureau of Contracts and Procurement T...

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 93.044, 93.045, 93.053 Aging Cluster State Agency: Department of Health and Human Services (DHHS) Audit Contact: Hannah Glines and Melissa Kelleher Title: Revenue Director and Grants Administrator of Bureau of Contracts and Procurement Telephone: 603-271-5052 and 603-271-9637 E-mail address: Hannah.J.Glines@dhhs.nh.gov, Melissa.J.Kelleher@dhhs.nh.gov Audit Report Reference: 2024-015 – FFATA Reporting Anticipated Completion Date: September 30, 2025 Corrective Action Planned: FFATA procedures will be reviewed and strengthened to ensure adequate controls are in place. This will include training other members of the federal reporting staff so that there is sufficient separation of duties for preparation, review, approval, and timely submittal of the reports. The contracts were all in process prior to the April 4, 2022, inception of the UEI, and had been prepared with the DUNS number. However, the appropriate UEI was obtained to perform the required FFATA reporting requirements using SAM.GOV.

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Finding 540642 (2024-014)

Material Weakness 2024

State of New Hampshire

NH

Subrecipient Monitoring Allowable Costs / Cost Principles Material Weakness § 200.303

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 84.425 COVID-19 Education Stabilization Fund State Agency: Education Department (ED) Audit Contact: Lindsey Labonville Title: Administrator IV Telephone: 603.731.4621 E-mail address: Lindsey.L.Labonville@doe.nh.gov Audit Report Referenc...

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 84.425 COVID-19 Education Stabilization Fund State Agency: Education Department (ED) Audit Contact: Lindsey Labonville Title: Administrator IV Telephone: 603.731.4621 E-mail address: Lindsey.L.Labonville@doe.nh.gov Audit Report Reference: 2024-014, 2023-008; 2022-013, 2022-016; 2021-013, 2021-015 - Reporting Anticipated Completion Date: 06/30/2025 Corrective Action Planned: The NHED concurs with this finding. We acknowledge these discrepancies with a note regarding section b and c. These discrepancies are associated with ESSER III and not ESSER II. The lack of documentation is due to employee turnover. Locating documentation was a challenge for the ESSER Reporting. We are currently reviewing the FY24 reports and making corrections. The corrected ESSER Recipient Data Collection Form will be updated and refiled during the Year 4 re-open period on 7/28/2025. Documentation will be centrally located in the common drive clearly marked. The review process will be well documented with completed sign-off documentation to confirm reconciliation between the GMS system and NH First, the financial system of record.

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Finding 540637 (2024-013)

Material Weakness 2024

State of New Hampshire

NH

Reporting Subrecipient Monitoring Material Weakness § 200.303

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 84.425 COVID-19 Education Stabilization Fund - FFATA State Agency: Education Department (ED) Audit Contact: Lindsey Labonville Title: Administrator IV Telephone: 603.731.4621 E-mail address: Lindsey.L.Labonville@doe.nh.gov Audit Report ...

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 84.425 COVID-19 Education Stabilization Fund - FFATA State Agency: Education Department (ED) Audit Contact: Lindsey Labonville Title: Administrator IV Telephone: 603.731.4621 E-mail address: Lindsey.L.Labonville@doe.nh.gov Audit Report Reference: 2024-013; 2023-008; 2022-013, 2022-016; 2021-013, 2021-015 - FFATA Reporting Anticipated Completion Date: 06/30/2025 Corrective Action Planned: The NHED concurs with this finding. The FFATA reporting procedure was redefined last year with updates to the GMS system implemented. GMS was updated to issue the GAN upon initial allocation instead of upon first approval of activities in the system. There were a few grants where the initial allocation was uploaded into GMS in 2021 with the first approval of activities completed after the GMS update. The GAN for these few grants was not created due to the change in procedure. Through the reconciliation process, these issues were identified and GANs were created later than anticipated. Moving forward, this will not be an issue as this was a limited transition period.

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Finding 540636 (2024-012)

Material Weakness 2024

State of New Hampshire

NH

Internal Control / Segregation of Duties Procurement, Suspension & Debarment Material Weakness § 200.303

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 21.029 Coronavirus Capital Project Funds State Agency: Department of Business and Economic Affairs (BEA) Audit Contact: Kathy Fredericksen Title: Administrator III Telephone: (603) 271-0260 E-mail address: Kathleen.C.Fredericksen@livef...

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 21.029 Coronavirus Capital Project Funds State Agency: Department of Business and Economic Affairs (BEA) Audit Contact: Kathy Fredericksen Title: Administrator III Telephone: (603) 271-0260 E-mail address: Kathleen.C.Fredericksen@livefree.nh.gov Audit Report Reference: 2024-012 and 2023-006 - Reporting Anticipated Completion Date: No Later than 6/30/2025 Corrective Action Planned: In response to a similar finding in the 2023 audit, the Department modified reporting procedures to strengthen the precision of the reconciliation of reporting data to the Capital Project Fund dashboard. These changes were made prior to the end of the audit period but after the September 30th reporting cycle. Accordingly, the Department would note the application of audit procedures to the June 30, 2024, report did not identify similar errors. Regarding the tracking and reporting of actual total miles of fiber deployed and actual total locations; the Department would note Federal guidance documents state actual miles are not required to be reported until a project is completed. The “Coronavirus Capital Projects Fund: States, Territories, and Freely Associated States Project and Expenditure Report User Guide” (updated 12/20/2024) specifically instructs recipients to “Input the total miles of fiber planned to be deployed by the project” and “Provide the number of locations the project plans expect to serve”. Both of these instructions are accompanied by a notation stating actual amounts should be reported for projects marked as complete. The Department will take measures to ensure, upon project completion, reporting elements will be updated to reflect actual miles of fiber and locations served as per guidance. In doing so, and recognizing the unique characteristics of these reporting elements, the Department will take measures to obtain support sufficient to ensure the reported data elements are accurate. The Department is also taking measures during the active project period to review progress and expenditure allowability at project milestones, ensuring sufficient support and project progress.

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Finding 540635 (2024-011)

Significant Deficiency 2024

State of New Hampshire

NH

Subrecipient Monitoring Matching / Level of Effort / Earmarking § 200.303 § 200.331

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 21.027 Coronavirus State and Local Fiscal Recovery Funds State Agency: NH Governor’s Office of Emergency Relief and Recovery Audit Contact: Michele Thibault Title: Director of Finance and Compliance Telephone: (603)-271-7951 E-mail ad...

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 21.027 Coronavirus State and Local Fiscal Recovery Funds State Agency: NH Governor’s Office of Emergency Relief and Recovery Audit Contact: Michele Thibault Title: Director of Finance and Compliance Telephone: (603)-271-7951 E-mail address: Michele.Z.Thibault-G@goferr.nh.gov Audit Report Reference: 2024-011 – Procurement Anticipated Completion Date: April 30, 2025 View of Responsible Officials: The State’s vendor determination policy is consistently applied across all Department’s within the State. The State’s vendor determination policy does not identify or vary for subrecipient, beneficiary, or contractor payments, however, federal reporting requirements dictate stratification of subawards as defined within 2 CFR 200. Accordingly, state agencies utilize various methods to differentiate payments to subrecipients from payments made to beneficiaries or contractors. Although there may be requirements to stratify beneficiary payments from procurement contracts specific to individual program requirements, there is no unifying requirement for States to otherwise stratify these populations within uniform grant guidance codified within 2 CFR 200. For this reason sampling of payment data to differentiate beneficiaries from contractors can be difficult for test work purposes. As stated in 2 CFR 200.331, the State is responsible for making a case-by-case determination to determine whether the entity receiving federal funds is a subrecipient or a contractor. As such, the State has provided training and documentation to all Departments to utilize for determining if a program/project is for a subrecipient or contractor. While this determination will not impact the procurement process in the State, it does impact the monitoring process for subrecipients versus contractors and the State has followed the procedures to ensure the proper determination for oversight. Per 2 CFR section 200.303, the State has established and maintained effective internal control over federal awards to provide reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award by providing Departments training, information and processes for Departments to determine if federal funds are utilized for a subrecipient or contractor and how the use of those funds shall be monitored. The State will review the selections determined to be misclassified per 2 CFR 200.331 to evaluate their classification and where necessary make adjustments to considerations made in the application of the specified criteria of 200.331

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Finding 540634 (2024-010)

Significant Deficiency 2024

State of New Hampshire

NH

Procurement, Suspension & Debarment Subrecipient Monitoring § 200.303

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 21.027 Coronavirus State and Local Fiscal Recovery Funds State Agency: Department of Administrative Services (DAS) Audit Contact: Steven Giovinelli Title: Federal Grants and Cost Allocation Administrator Telephone: (603) 271-2278 E-mail...

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 21.027 Coronavirus State and Local Fiscal Recovery Funds State Agency: Department of Administrative Services (DAS) Audit Contact: Steven Giovinelli Title: Federal Grants and Cost Allocation Administrator Telephone: (603) 271-2278 E-mail address: steven.giovinelli@das.nh.gov Audit Report Reference: 2024-010 - Suspension and Debarment Anticipated Completion Date: June 30, 2025 Corrective Action Planned: The Department concurs. Although the Department has procedures and internal controls in place designed to provide reasonable assurance the State complies with federal compliance requirements regarding suspension and debarment, the Department acknowledges the identification of noncompliance. Accordingly, the Department will review the existing system of controls to determine any potential adjustments to reduce the likelihood of future instances of noncompliance. The Department’s review will include consideration of inclusion of a suspension and debarment certification in all contracts regardless of funding source.CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 21.027 Coronavirus State and Local Fiscal Recovery Funds State Agency: Department of Business and Economic Affairs (BEA) Audit Contact: Kathy Fredericksen Title: Administrator III Telephone: (603) 271-0260 E-mail address: Kathleen.C.Fredericksen@livefree.nh.gov Audit Report Reference: 2024-010, 2023-004, 2022-009 - Suspension and Debarment Anticipated Completion Date: No Later than 6/30/2025 Corrective Action Planned: BEA partially concurs with the audit finding and has an anticipated completion date to the corrective action plan of June 30, 2025. BEA did review the suspension and debarment in SAM.gov, however, an acceptable validation record of such review was not maintained. To remedy the finding, BEA will ensure that documentation is maintained for the search of SAM.gov for suspension and debarment. Additionally, federal program contracts going forward will contain Exhibit F, Suspension & Debarment Certification, thereby satisfying said requirement. Condition: During KPMG testwork over suspension and debarment, they identified 3 BEA contracts with no supporting documentation that the BEA had verified either through a signed certification or searching SAM.gov that the entity was not suspended or debarred. Condition to be completed no later than 6/30/2025

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Finding 540631 (2024-009)

Material Weakness 2024

State of New Hampshire

NH

Subrecipient Monitoring Material Weakness Reporting § 200.303

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 WIOA Cluster (Assistance Listing #17.258, #17.259, #17.278) State Agency: Department of Business and Economic Affairs Audit Contact: Kathy Fredericksen Title: Administrator III Telephone: (603) 271-0260 E-mail address: Kathleen.C.Frederi...

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 WIOA Cluster (Assistance Listing #17.258, #17.259, #17.278) State Agency: Department of Business and Economic Affairs Audit Contact: Kathy Fredericksen Title: Administrator III Telephone: (603) 271-0260 E-mail address: Kathleen.C.Fredericksen@livefree.nh.gov Audit Report Reference: 2024-009 - Reporting Anticipated Completion Date: No Later than 6/30/2025 Condition: Federal Financial Accountability and Transparency Act (FFATA) reports during the fiscal year ending June 30, 2024, were not filed in compliance with the Transparency Act related to WIOA programs. View of Responsible Officials: BEA concurs with the audit finding and has an anticipated completion date to the corrective action plan of June 30, 2025. Corrective Action Planned: BEA will evaluate polices & procedures as well as existing internal controls in place to ensure that the precision level of the control is such that it would detect an error in the reporting requirements in comparison to reports required to be filed versus filed and that all documentation used to support the data reported on the federal report(s) are properly maintained. Furthermore, BEA will enhance policies and procedures and re-implement to include internal controls ensuring all FFATA reports are submitted in compliance with the Transparency Act reporting requirements. BEA will ensure staff attends appropriate compliance trainings.

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Finding 540622 (2024-008)

Material Weakness 2024

State of New Hampshire

NH

Questioned Costs Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.303 § 200.306 § 200.414 § 200.434

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 Fish and Wildlife Cluster (Assistance Listing #15.605, #15.611, #15.626) State Agency: NH Fish and Game Department Audit Contact: Kathy LaBonte Title: Business Division Chief Telephone: 603 271-2274 E-mail address: kathy.a.labonte@wildli...

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 Fish and Wildlife Cluster (Assistance Listing #15.605, #15.611, #15.626) State Agency: NH Fish and Game Department Audit Contact: Kathy LaBonte Title: Business Division Chief Telephone: 603 271-2274 E-mail address: kathy.a.labonte@wildlife.nh.gov Audit Report Reference: 2024-008 - Matching Anticipated Completion Date: June 30, 2025 Corrective Action Planned: To have revised procedures in place to include additional documentation to ensure accuracy from the subrecipient. We concur with the finding; A. In-kind match documentation earned requires additional documentation to support subrecipient match contribution. Revised procedures will be implemented to include additional documentation from the subrecipient to ensure accuracy. B. Internal review of volunteer in-kind match calculations are in place, however, in one instance, prior year rates were used resulting in under reported in-kind match earned. The Department does review and track match received from the subrecipient. We do not agree there are questioned costs of $201,250.

View Audit 350389 Questioned Costs: $1

Finding 540621 (2024-007)

Material Weakness 2024

State of New Hampshire

NH

Questioned Costs Allowable Costs / Cost Principles § 200.303 § 200.502

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 Fish and Wildlife Cluster (Assistance Listing #15.605, #15.611, #15.626) State Agency: NH Fish and Game Department Audit Contact: Kathy LaBonte Title: Business Division Chief Telephone: 603 271-2274 E-mail address: kathy.a.labonte@wildli...

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 Fish and Wildlife Cluster (Assistance Listing #15.605, #15.611, #15.626) State Agency: NH Fish and Game Department Audit Contact: Kathy LaBonte Title: Business Division Chief Telephone: 603 271-2274 E-mail address: kathy.a.labonte@wildlife.nh.gov Audit Report Reference: 2024-007 – Activities Allowed or Unallowed/Allowable Costs/Costs Principles Anticipated Completion Date: Unknown Corrective Action Planned: To have the ability to use NHFIRST for grant accounting in the future. Hopefully, the migration to CloudSuite will offer this option. We concur in part with the finding; A. The Department does recognize the NHFIRST system is the official financial system of the state of NH, however, at this time NHFIRST does not allow for us to be able to charge grants individually for staff working on grant funded projects through the NHFIRST system. Therefore, we use QuickBooks as a ‘calculator’ for these grant costs. The Department uses a calculated rate based on the employee’s pay rate, benefits and years of service. While it is an arduous and complicated task, there is currently no other option for capturing all costs of the employee to the programs. B. We do not concur with part B as we did supply the support to substantiate the payroll costs but it was not used for testing. C. We did provide a specific sample for testing but again not in the timeliness requested. The Department does perform reconciliations and pre-audits of information entered into QuickBooks to verify data is complete and accurate. Payment vouchers are entered into QuickBooks by the Federal Aid Accountant and verified by the Supervisor. The Supervisor also verifies payroll and Indirect. We do not agree there are questioned costs of $11,409.

View Audit 350389 Questioned Costs: $1

Finding 540620 (2024-006)

Material Weakness 2024

State of New Hampshire

NH

Reporting § 200.303 § 200.502 § 200.510

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 Fish and Wildlife Cluster (Assistance Listing #15.605, #15.611, #15.626) State Agency: NH Fish and Game Department Audit Contact: Kathy LaBonte Title: Business Division Chief Telephone: 603 271-2274 E-mail address: kathy.a.labonte@wildli...

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 Fish and Wildlife Cluster (Assistance Listing #15.605, #15.611, #15.626) State Agency: NH Fish and Game Department Audit Contact: Kathy LaBonte Title: Business Division Chief Telephone: 603 271-2274 E-mail address: kathy.a.labonte@wildlife.nh.gov Audit Report Reference: 2024-006 – SEFA Reporting Anticipated Completion Date: Completed Corrective Action Planned: Improved internal controls to evaluate amounts reported on the SEFA have been implemented. We concur in part with the finding: A. Out-of-period expenditure amounts were incorrectly included on the SEFA. These amounts have been identified and corrections have been made. B. Same as above. C. The Department partially concurs. For one grant, W108-L2 / F21AF04030, the amount understated is actually $5,431. As previously explained, a portion of the amount listed as understated, was a Donation to the purchase of property, and not a direct Department Expenditure. ($112.500.00). Corrections have been made to the SEFA. D. Only the total Federal share of expenditures were reported on the SEFA. The Department does perform reconciliations and pre-audits of information entered into QuickBooks to verify data is complete and accurate. Improved internal controls to evaluate the amounts reported on the SEFA have been implemented.

View Audit 350389

Finding 540619 (2024-005)

Material Weakness 2024

State of New Hampshire

NH

Subrecipient Monitoring Cash Management § 200.303 § 200.332 § 200.501 § 200.521

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 Fish and Wildlife Cluster (Assistance Listing #15.605, #15.611, #15.626) State Agency: NH Fish and Game Department Audit Contact: Randy Curtis Title: Federal Aid Administrator Telephone: (603) 271-0801 E-mail address: randy.l.curtis@wild...

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 Fish and Wildlife Cluster (Assistance Listing #15.605, #15.611, #15.626) State Agency: NH Fish and Game Department Audit Contact: Randy Curtis Title: Federal Aid Administrator Telephone: (603) 271-0801 E-mail address: randy.l.curtis@wildlife.nh.gov Audit Report Reference: 2024-005 – Subrecipient Monitoring Anticipated Completion Date: June 30, 2025 Corrective Action Planned: We partially concur with the finding. A. The Department concurs there were required elements missing from the information included in tested subaward agreements. The Department will develop templates and put in place a process to ensure that all subrecipient agreements contain all required communications. B. The Department concurs and has recently completed and is implementing new internal policies and procedures that address nearly all of the conditions identified in this finding overall. These written policies and procedures were designed to be in compliance with the requirements of 2 CFR Part 200 Subpart D - Subrecipient Monitoring and Management and to establish improved internal controls. The policy includes a process for completing a risk assessment which outlines they types and frequency of monitoring procedures and for documenting their completion. C. The Department partially concurs with this condition. We believe the level of detail included within the invoice was consistent with the terms of the agreements and project budgets and did allow Department staff reviewing the reasonableness of the costs incurred to ensure that they were incurred in accordance with the grant agreement. Additionally, the Department’s updated subrecipient monitoring policies and procedures will provide for testing and requesting detailed backup and support for at least one invoice annually. D. The Department concurs there was no specific evidence denoting approval of the subaward reports. However, Department project leaders do review reports received from subrecipients and typically include them as attachments in our own grant reports to the Fish and Wildlife Service. A step will be added to monitoring procedures to include specific Department approval of subrecipient reports. Further, the Department will include a step for documentation of the receipt and review of subrecipient Uniform Guidance audit reports.

View Audit 350389

Finding 540618 (2024-004)

Material Weakness 2024

State of New Hampshire

NH

Internal Control / Segregation of Duties Cash Management Material Weakness § 200.303

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 12.401 National Guard Military Operations and Maintenance (O&M) Projects State Agency: Department of Military Affairs and Veterans Services (DMAVS) Audit Contact: Judy Chen Title: Administrator Telephone: 603-225-1366 E-mail address: yin...

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 12.401 National Guard Military Operations and Maintenance (O&M) Projects State Agency: Department of Military Affairs and Veterans Services (DMAVS) Audit Contact: Judy Chen Title: Administrator Telephone: 603-225-1366 E-mail address: ying.q.chen@DMAVS.nh.gov Audit Report Reference: 2024-004, 2023-003 – Cash Management Anticipated Completion Date: None Corrective Action Planned: Non Concur With regard to the segregation of duties, the SF-270 is a required form that DMAVS submits to the National Guard Appendix Program Manager for reimbursement with all back up documentation. The National Guard Appendix Program Manager, National Guard Grants Officer Representative, and National Guard United States Property Fiscal Officer (USPFO)/controller located in Concord, NH review, sign and submit the form to the Department of Defense on behalf of DMAVS to request the cash draw. Prior to the submission of reimbursement of any funds, each billing and invoice is reviewed, entered into a ledger and reconciled by three members of the accounting team. Once reconciled, the SF-270 is prepared and signed by the Financial Administrator. The SF-270 is then submitted to the appendix program manager for concurrence and then to the federal fiscal agent (USPFO) for approval. No funds are drawn down until approved by the USPFO. If this is not a satisfactory level of review, the department will request a new position to ensure that there the business function has the proper level of staffing to meet the requirements for segregation of duties.

View Audit 350389

Finding 540617 (2024-003)

Material Weakness 2024

State of New Hampshire

NH

Internal Control / Segregation of Duties Cash Management Material Weakness § 200.303

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 12.401 National Guard Military Operations and Maintenance (O&M) Projects State Agency: Department of Military Affairs and Veterans Services (DMAVS) Audit Contact: Judy Chen Title: Administrator Telephone: 603-225-1366 E-mail address: yin...

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 12.401 National Guard Military Operations and Maintenance (O&M) Projects State Agency: Department of Military Affairs and Veterans Services (DMAVS) Audit Contact: Judy Chen Title: Administrator Telephone: 603-225-1366 E-mail address: ying.q.chen@DMAVS.nh.gov Audit Report Reference: 2024-003, 2023-002 – Reporting Anticipated Completion Date: None Corrective Action Planned: Non Concur This requires the Department to create a redundant manual ledger that duplicates the function of the current ledger and DTR. This is not an efficient use of time or personnel. DMAVS has existing policies and procedures in place to track all federal funds, state funds and mixed funds, and uses spreadsheets for all transactions that reconciles every month to NH First Detail Transaction Register (DTR), Federal Fund tracking sheet, and Federal reimbursement tracking sheet with backup documents. The tracking sheet for the federal register is not intended to account for the state share of billing. The state share is accurately accounted for in the DTR, the cumulative accounting in the SF-270 and associated back up documentation. Supporting documentation to substantiate the accuracy of lines a, c, e, and f is in the DTR, the cumulative accounting of each SF-270, the supporting documentation sent with the billing to the Federal Government, and Year-end Agency Report for Federal Awards. This includes reconciliation and analysis of SADB expenditures and revenues to the Statement of Appropriations by each Program Accounting Unit. The SF-270 form is continuous cumulative data that starts Oct 1st and runs through the end of that Federal Fiscal Year. The SF-270 is the required federal form DMAVS submits to the Federal National Guard Appendix Program Manager for reimbursement. Back up documentation is submitted with the SF-270. The National Guard Appendix Program Manager, National Guard Grants Officer Representative, and National Guard United States Property Fiscal Officer (USPFO)/controller located in Concord, NH review, sign and submit the form to the Department of Defense to affect the cash draw. DMAVS does not unilaterally make cash draws to the federal government. The USPFO, who is substantially involved provides an independent review and reconciles any discrepancies prior to approving any requests for reimbursement. One possible explanation for the finding is that the selected test works were not continuous, nor did they account for cumulative data.

View Audit 350389

Finding 540613 (2024-002)

Material Weakness 2024

State of New Hampshire

NH

Subrecipient Monitoring Reporting Matching / Level of Effort / Earmarking § 200.1 § 200.303

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 10.553/10.555/10.556/10.559 Child Nutrition Cluster State Agency: Education Department Audit Contact: Lindsey Labonville Title: Administrator IV Telephone: 603.731.4621 E-mail address: Lindsey.L.Labonville@doe.nh.gov Audit Report Refer...

CORRECTIVE ACTION PLAN State Fiscal Year Ended June 30, 2024 10.553/10.555/10.556/10.559 Child Nutrition Cluster State Agency: Education Department Audit Contact: Lindsey Labonville Title: Administrator IV Telephone: 603.731.4621 E-mail address: Lindsey.L.Labonville@doe.nh.gov Audit Report Reference: 2024-002 - Child Nutrition Cluster Finding Anticipated Completion Date: June 30, 2025 Corrective Action Planned: The NHED concurs with this finding. NHED contacted the US Department of Agriculture (USDA) for information on FFATA reporting requirements for state education agencies. The contact at USDA, Suzanne Dagesse, responded on February 6, 2024, that they were not aware of the requirement, and that this requirement has never been communicated to the NHED Office of Food & Nutrition Programs, by USDA. NHED has had annual reviews conducted by USDA of the programs administered and this requirement has never been communicated. NHED will add the food and nutrition programs to the established FFATA process already implemented to ensure that amounts to subrecipients are tracked and that all first tier subawards of $30,000 or more are reported in accordance with FFATA.

View Audit 350389

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