Corrective Action Plans

Finding 1187171 (2025-030)

Material Weakness 2025

State of Maine

ME

Reporting Internal Control / Segregation of Duties § 200.303 § 200.510

Department: Administrative and Financial Services Title: Internal control over Health Disparities program SEFA reporting needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Service Center will consult with OSC to help ensure our current processes are...

Department: Administrative and Financial Services Title: Internal control over Health Disparities program SEFA reporting needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Service Center will consult with OSC to help ensure our current processes are correct and are designed to provide accurate information for the SEFA. The Service Center will update procedures and provide guidance and trainings as necessary to staff to ensure reporting of expenditure amounts for the SEFA is accurate. Completion Date: August 31, 2026 Agency Contact: Sarah Gove, Director, DHHS Service Center, DAFS, 207-458-6626

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Finding 1187170 (2025-035)

Material Weakness 2025

State of Maine

ME

Procurement, Suspension & Debarment § 200.303 § 200.317

Department: Administrative and Financial Services Health and Human Services Title: Internal control over Health Disparities program procurement needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: Department of Administrative and Financial Services (DAFS)...

Department: Administrative and Financial Services Health and Human Services Title: Internal control over Health Disparities program procurement needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: Department of Administrative and Financial Services (DAFS): The Department will develop a specific policy document that balances agency authority/responsibility with procurement best practices regarding contract dates, clearly communicating risks and responsibilities. The Department will create a companion communication document to this policy document for distribution purposes. The Department will spotlight the policy and communication documents in the OSPS monthly electronic newsletter to all agencies. The Department will post the policy statement and communications documents on the OSPS intranet site. The Department will integrate the new content into the draft OSPS Policy Manual. The Department will release the related module in the new, updated, digital OSPS Policy Manual. Department of Health and Human Services (DHHS): The Department will collaborate with OSPS and program offices to implement procedures to ensure the timeliness of procurement documents. Completion Date: DAFS: April 30, 2026 (first item), May 15, 2026 (second item), May 31, 2026 (third and fourth items), June 30, 2026 (fifth item), and September 30, 2026 (sixth item) DHHS: May 31, 2026 Agency Contact: DAFS: David Morris, Acting Chief Procurement Officer, OSPS, 207-624-7335 DHHS: Jim Lopatosky, Director, Division of Contract Management, DHHS, 207-287-5075

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Finding 1187169 (2025-029)

Material Weakness 2025

State of Maine

ME

Allowable Costs / Cost Principles Internal Control / Segregation of Duties § 200.303 § 200.403

Department: Defense, Veterans and Emergency Management Administrative and Financial Services Title: Internal control over National Guard payroll costs needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: Defense, Veterans and Emergency Management (DVEM): ...

Department: Defense, Veterans and Emergency Management Administrative and Financial Services Title: Internal control over National Guard payroll costs needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: Defense, Veterans and Emergency Management (DVEM): The Department identified "agency heads" for the positions identified in the audit. The Department communicated to "agency heads" regarding the requirement to sign forms. Department of Administrative and Financial Services (DAFS): The Department will update the PMF guidance as part of ongoing modernization efforts. The Department will educate HR Staff in reviewing completed PMFs to ensure they are fully completed before processing. Completion Date: DVEM: March 2026 DAFS: August 1, 2026, and October 1, 2026, respectively Agency Contact: DVEM: Michelle Lenihan, Deputy Commissioner, DVEM, 207- 430-5997 DAFS: Michael J. Dunn, Esq., Acting State Human Resources Officer, BHR, 207- 215-2951

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Finding 1187168 (2025-028)

Material Weakness 2025

State of Maine

ME

Cash Management Internal Control / Segregation of Duties Subrecipient Monitoring § 200.302 § 200.303

Department: Defense, Veterans and Emergency Management Title: Internal control over National Guard cash management and the related financial reporting needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department will improve policies and procedures...

Department: Defense, Veterans and Emergency Management Title: Internal control over National Guard cash management and the related financial reporting needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department will improve policies and procedures to follow up on outstanding reimbursement requests to facilitate a more timely reimbursements from the Federal government. The Department will improve policies and procedures, including reconciling reimbursement activity to the State’s accounting system. The Department will improve and maintain effective internal control over Federal awards to provide reasonable assurance that the Department is managing awards in compliance with federal statutes, regulations and the terms and conditions of awards. The Department will review, update and document supervisory oversight. Completion Date: June 30, 2026 (first, second and third items), and May 30, 2026 (fourth item) Agency Contact: Diane Dunn, Commissioner, DVEM, 207- 430-5158

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Finding 1187167 (2025-027)

Material Weakness 2025

State of Maine

ME

Procurement, Suspension & Debarment § 200.303 § 200.317

Department: Administrative and Financial Services Health and Human Services Title: Internal control over Summer EBT procurement needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: Department of Administrative and Financial Services (DAFS): The Department...

Department: Administrative and Financial Services Health and Human Services Title: Internal control over Summer EBT procurement needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: Department of Administrative and Financial Services (DAFS): The Department will update related policies to balance agency authority/responsibility with procurement best practices, clearly communicating risks and responsibilities. The Department will integrate the new content into the draft OSPS Policy Manual. The Department will release related module in the new, updated, digital OSPS Policy Manual. Department of Health and Human Services (DHHS): The Department will collaborate with OSPS and program offices to implement procedures to ensure the timeliness of procurement documents. Completion Date: DAFS: May 31, 2026, June 30, 2026, and September 30, 2026, respectively DHHS: May 31, 2026 Agency Contact: DAFS: David Morris, Acting Chief Procurement Officer, OSPS, 207-624-7335 DHHS: Jim Lopatosky, Director, Division of Contract Management, DHHS, 207-287-5075

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Finding 1187166 (2025-026)

Material Weakness 2025

State of Maine

ME

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Eligibility § 200.303

Department: Health and Human Services Title: Internal control over Summer EBT eligibility needs improvement Questioned Costs: Known; $1,680 Likely: Undeterminable Status: Corrective action complete Corrective Action: Documentation and Records Retention: The Department replaced manual notification wi...

Department: Health and Human Services Title: Internal control over Summer EBT eligibility needs improvement Questioned Costs: Known; $1,680 Likely: Undeterminable Status: Corrective action complete Corrective Action: Documentation and Records Retention: The Department replaced manual notification with automation through the statewide database. Database generated letters are both retained appropriately and easily retrievable for individual clients. Inaccurate certifications through database errors: Database cleanup and streamline certification logic updates were necessary to resolve inaccurate certifications. This process was completed prior to issuance for summer of 2025. Completion Date: May 1, 2025 Agency Contact: Evan Denno, Program Manager – SNAP, DHHS, 207-446-3201

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Finding 1187165 (2025-023)

Material Weakness 2025

State of Maine

ME

Subrecipient Monitoring Internal Control / Segregation of Duties Procurement, Suspension & Debarment § 200.303 § 200.332

Department: Education Title: Internal control over CNC subrecipient audit monitoring needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: Fiscal Review and Compliance Consultant: The Policy and Procedure manual will be updated to include regular monthly n...

Department: Education Title: Internal control over CNC subrecipient audit monitoring needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: Fiscal Review and Compliance Consultant: The Policy and Procedure manual will be updated to include regular monthly notifications in a system (such as Microsoft Outlook) to update the audit tracking spreadsheet for accuracy. Regionalization and Compliance Coordinator: The Policy and Procedure manual will be updated to add a step to set up regular monthly notifications in a system (such as Microsoft Outlook) for the supervisor to review the audit tracking spreadsheet for accuracy and completion. Completion Date: April 30, 2026 Agency Contact: Nicole Denis, Director of Finance, DOE, 207-530-2161

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Finding 1187160 (2025-024)

Material Weakness 2025

State of Maine

ME

Significant Deficiency Special Tests & Provisions

Department: Redacted Title: Redacted Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department agrees with the finding. The Department’s corrective action plan has been excluded to protect confidential information. The complete corrective action plan has been pro...

Department: Redacted Title: Redacted Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department agrees with the finding. The Department’s corrective action plan has been excluded to protect confidential information. The complete corrective action plan has been provided to the Office of the State Auditor under separate cover. Completion Date: August 30, 2026, and October 1, 2026, respectively Agency Contact: Shirley Browne, Deputy State Controller, Office of the State Controller, 207-626-8423

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Finding 1187155 (2025-025)

Material Weakness 2025

State of Maine

ME

Significant Deficiency Special Tests & Provisions

Department: Redacted Title: Redacted Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department partially agrees with the finding. The Department’s corrective action plan as well as the explanation and specific reasons for disagreement have been excluded to protec...

Department: Redacted Title: Redacted Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department partially agrees with the finding. The Department’s corrective action plan as well as the explanation and specific reasons for disagreement have been excluded to protect confidential information. The complete corrective action plan as well as the explanation and specific reasons for disagreement have been provided to the Office of the State Auditor under separate cover. Completion Date: March 16, 2026 (first through fourth items), April 1, 2026 (fifth and sixth items), and June 1, 2026 Agency Contact: Shirley Browne, Deputy State Controller, Office of the State Controller, 207-626-8423

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Finding 1187150 (2025-022)

Material Weakness 2025

State of Maine

ME

Reporting School Nutrition Programs Equipment & Real Property Management § 200.303

Department: Education Title: Internal control over CNC donated food inventory needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department will continue with monthly inventory check-ins with the vendor that were instituted beginning in SY25. This c...

Department: Education Title: Internal control over CNC donated food inventory needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department will continue with monthly inventory check-ins with the vendor that were instituted beginning in SY25. This check-in reviews all items in the warehouse. If the monthly check-in variance is above 2% then the items will be manually counted at the warehouse. The Department submitted a ticket for inventory errors, and it is monitored regularly. Completion Date: June 30, 2025, October 1, 2026, and December 3, 2026, respectively Agency Contact: Jane McLucas, Director of Child Nutrition, DOE, 207-624-6880

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Finding 1187145 (2025-021)

Material Weakness 2025

State of Maine

ME

School Nutrition Programs Subrecipient Monitoring Internal Control / Segregation of Duties § 200.303

Department: Education Title: Internal control over CNC special reporting needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department has reported the previously unreported items through a batch upload process. The Department will review batch uplo...

Department: Education Title: Internal control over CNC special reporting needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department has reported the previously unreported items through a batch upload process. The Department will review batch uploads for accuracy by the Director of Finance prior to submission, as was done under the previous reporting system. Completion Date: August 31, 2025, and March 4, 2026, respectively Agency Contact: Nicole Denis, Director of Finance, DOE, 207-530-2161

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Finding 1187140 (2025-020)

Material Weakness 2025

State of Maine

ME

School Nutrition Programs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303 § 200.332

Department: Education Title: Internal control over CNC subrecipient monitoring procedures needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department will review and monitor the tracking spreadsheet monthly. The Department will hold monthly meetin...

Department: Education Title: Internal control over CNC subrecipient monitoring procedures needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department will review and monitor the tracking spreadsheet monthly. The Department will hold monthly meetings to ensure CNP web questions and tools are completed, and documents are saved in the appropriate location. The Department will conduct training with NSLP reviewers on expectations for saving documentation Conduct training with NSLP reviewers on how to answer SFSP procurement questions for schools. The Department will update the Special Provision 2 base year review and validation procedure to include where to save documents and show the completion in CNP web. The Special Provision 2 base year reviews will be included in Step 2, starting SFY 2027. Completion Date: May 1, 2026 (first to third items), June 15, 2026 (fourth item), June 30, 2026 (fifth item), and October 30, 2026 (sixth item) Agency Contact: Jane McLucas, Director of Child Nutrition, DOE, 207-624-6880

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Finding 1187135 (2025-019)

Material Weakness 2025

State of Maine

ME

Allowable Costs / Cost Principles School Nutrition Programs § 200.303 § 200.403

Department: Education Title: Internal control over CNC claim reimbursements needs improvement Questioned Costs: Known: ALN 10.559 $61,336 ALN 10.582 $12,215 Likely: ALN 10.559 undeterminable ALN 10.582 undeterminable Status: Corrective action in progress Corrective Action: The Department will create...

Department: Education Title: Internal control over CNC claim reimbursements needs improvement Questioned Costs: Known: ALN 10.559 $61,336 ALN 10.582 $12,215 Likely: ALN 10.559 undeterminable ALN 10.582 undeterminable Status: Corrective action in progress Corrective Action: The Department will create a business requirements document for the SFSP site sheet and claims camp/closed enrolled eligibility edit checks. The non-congregate application now requires sponsors’ to have a written procedure to address site proximity, this is captured in an offline form in the checklist document. The Department submitted a ticket to update the FNS report so it will collect the data needed. For the FFVP, a tracking procedure is in place for SFY 2026 to stay within the $50-75/student rate. A spreadsheet is being used to track this information and has been implemented. Completion Date: March 4, 2026 (first item), June 30, 2025 (second and fourth items), and March 19, 2025 (third item) Agency Contact: Jane McLucas, Director of Child Nutrition, DOE, 207-624-6880

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Finding 1187130 (2025-018)

Material Weakness 2025

State of Maine

ME

School Nutrition Programs Allowable Costs / Cost Principles Eligibility § 200.303

Department: Education Title: Internal control over CNC eligibility needs improvement Questioned Costs: Known: ALN 10.555 $73,683 ALN 10.559 $226,773 Likely: ALN 10.555 undeterminable ALN 10.559 undeterminable Status: Corrective action in progress Corrective Action: The Department will create a busin...

Department: Education Title: Internal control over CNC eligibility needs improvement Questioned Costs: Known: ALN 10.555 $73,683 ALN 10.559 $226,773 Likely: ALN 10.555 undeterminable ALN 10.559 undeterminable Status: Corrective action in progress Corrective Action: The Department will create a business requirements document for the SFSP site sheet and claims camp/closed enrolled eligibility edit checks. The Department will create a user guide to approve the site info sheet and apps to address oversite errors with the approval process. A financial eligibility edit check in the software will be implemented for program year 2026. A policy statement for non-congregate was a required document with an edit check in program year 2025. Completion Date: March 2, 2026, April 30, 2026, April 15, 2026, and May 1, 2025, respectively Agency Contact: Jane McLucas, Director of Child Nutrition, DOE, 207-624-6880

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Finding 1187125 (2025-017)

Material Weakness 2025

State of Maine

ME

Subrecipient Monitoring Procurement, Suspension & Debarment § 200.303 § 200.332

Department: Health and Human Services Title: Internal control over SNAP subrecipient monitoring procedures needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The SNAP team currently prepares the Rider A (Scope of Work) and Payment Rider for contracts an...

Department: Health and Human Services Title: Internal control over SNAP subrecipient monitoring procedures needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The SNAP team currently prepares the Rider A (Scope of Work) and Payment Rider for contracts and submits them to the Division of Contract Management, which assembles all other riders, including those documenting federal Award Identification numbers and Assistance Listing titles and numbers, in a final agreement. The SNAP team will meet with DCM and request that a final draft of all contracts be sent to the SNAP team for review so that we can assure that all required information has been included in the contract. Completion Date: June 1, 2026 Agency Contact: Patricia Dushuttle, Special Projects Manager - SNAP, DHHS, 207-215-0995

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Finding 1187123 (2025-015)

Material Weakness 2025

State of Maine

ME

Allowable Costs / Cost Principles Procurement, Suspension & Debarment § 200.303 § 200.403

Department: Health and Human Services Title: Internal control over SNAP deceased client cases needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Office of Family Independence is automating the Center for Disease Control and Prevention (CDC) data fee...

Department: Health and Human Services Title: Internal control over SNAP deceased client cases needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Office of Family Independence is automating the Center for Disease Control and Prevention (CDC) data feed and others as part of Pub. L. 119-21 Medicaid requirements. CDC data is scheduled to be fully automated by 8/1/26. The automation logic will enhance the matching to work despite spaces and special characters and add social security number matching logic. Completion Date: August 1, 2026 Agency Contact: Michael E. Downs, Public Service Coordinator II – SNAP, DHHS, 207-592-4850

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Finding 1187121 (2025-016)

Material Weakness 2025

State of Maine

ME

Procurement, Suspension & Debarment § 200.303 § 200.317

Department: Administrative and Financial Services Health and Human Services Title: Internal control over SNAP procurement needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: Department of Administrative and Financial Services (DAFS): The Department will ...

Department: Administrative and Financial Services Health and Human Services Title: Internal control over SNAP procurement needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: Department of Administrative and Financial Services (DAFS): The Department will develop a specific policy document that balances agency authority/responsibility with procurement best practices regarding contract dates, clearly communicating risks and responsibilities. The Department will create a companion communication document to this policy document for distribution purposes. The Department will spotlight the policy and communication documents in the OSPS monthly electronic newsletter to all agencies. The Department will post the policy statement and communications documents on the OSPS intranet site. The Department will integrate the new content into the draft OSPS Policy Manual. The Department will release the related module in the new, updated, digital OSPS Policy Manual. Department of Health and Human Services (DHHS): The Department will collaborate with OSPS and program offices to implement procedures to ensure the timeliness of procurement documents. Completion Date: DAFS: April 30, 2026 (first item), May 15, 2026 (second item), May 31, 2026 (third and fourth items), June 30, 2026 (fifth item), and September 30, 2026 (sixth item) DHHS: May 31, 2026 Agency Contact: DAFS: David Morris, Acting Chief Procurement Officer, OSPS, 207-624-7335 DHHS: Jim Lopatosky, Director, Division of Contract Management, DHHS, 207-287-5075

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Finding 1187119 (2025-014)

Material Weakness 2025

State of Maine

ME

Internal Control / Segregation of Duties Special Tests & Provisions Procurement, Suspension & Debarment § 200.303

Department: Health and Human Services Title: Internal control over EBT reconciliation needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department will request Technical Assistance From USDA-FNS on required reconciliation activities. (Completed) Th...

Department: Health and Human Services Title: Internal control over EBT reconciliation needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department will request Technical Assistance From USDA-FNS on required reconciliation activities. (Completed) The Department will receive feedback and instruction from USDA-FNS. The Department will engage EBT vendor with potential reporting changes (if necessary). The Department will update EBT Reconciliation Procedures and implement changes. Completion Date: February 26, 2026, April 30, 2026, May 31, 2026, and June 30, 2026, respectively Agency Contact: Ian Yaffe, Director, Office for Family Independence, DHHS, 207-592-1481

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Finding 1187117 (2025-013)

Material Weakness 2025

State of Maine

ME

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Special Tests & Provisions § 200.303

Department: Health and Human Services Title: Internal control over EBT card security needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department will ascertain from the EBT vendor when the SOC reports are published and when they will be furnished ...

Department: Health and Human Services Title: Internal control over EBT card security needs improvement Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department will ascertain from the EBT vendor when the SOC reports are published and when they will be furnished to the Department. The Department will schedule an appointment in Outlook for both the EBT Manager and EBT vendor to ensure the SOC reports are delivered by the due date. The Department has converted to a new EBT vendor so that Department staff are no longer receiving, storing, shredding, and remailing undelivered EBT cards. The Department will implement new procedures and complete a new SOP for the processing of EBT cards which have been reported by the vendor as undelivered. Completion Date: March 31, 2026 (first and fourth items), April 30, 2026 (second item), and July 2025 (third item) Agency Contact: Ian Yaffe, Director, Office for Family Independence, DHHS, 207-592-1481

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Finding 1187113 (2025-012)

Material Weakness 2025

State of Maine

ME

Allowable Costs / Cost Principles Procurement, Suspension & Debarment Internal Control / Segregation of Duties § 200.303 § 200.403

Department: Health and Human Services Title: Internal control over automated SNAP eligibility certification periods needs improvement Questioned Costs: Known: ALN 10.551 $7,658 Likely: ALN 10.551 Undeterminable Status: Corrective action in progress Corrective Action: The Department has developed a p...

Department: Health and Human Services Title: Internal control over automated SNAP eligibility certification periods needs improvement Questioned Costs: Known: ALN 10.551 $7,658 Likely: ALN 10.551 Undeterminable Status: Corrective action in progress Corrective Action: The Department has developed a process that identifies cases that have the wrong renewal date. Cases that are flagged as needing a six-month report but not having one scheduled by the system are manually worked to have the appointment added and the report sent out. The Department has resolved the last of the identified technological problems in February 2026. Completion Date: April 2, 2026, and March 1, 2026, respectively Agency Contact: Michael E. Downs, Public Service Coordinator II – SNAP, DHHS, 207-592-4850

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Finding 1187111 (2025-011)

Material Weakness 2025

State of Maine

ME

Allowable Costs / Cost Principles Procurement, Suspension & Debarment Internal Control / Segregation of Duties § 200.303 § 200.403

Department: Health and Human Services Title: Internal control over SNAP eligibility determinations and benefit calculations needs improvement Questioned Costs: Known: ALN 10.551 $47,493 Likely: Undeterminable Status: Corrective action in progress Corrective Action: The Department determined benefits...

Department: Health and Human Services Title: Internal control over SNAP eligibility determinations and benefit calculations needs improvement Questioned Costs: Known: ALN 10.551 $47,493 Likely: Undeterminable Status: Corrective action in progress Corrective Action: The Department determined benefits issued beyond the end of the certification period were the result of several technological errors. The last of these errors was resolved in February 2026. We also receive a monthly report of cases that failed to close at the end of the certification period and manually correct those few cases each month. The Department is taking steps to do more of this verification in an attempt to reduce our Payment Error Rate. Initial guidance has been distributed. Verification of expenses (above) will also enhance the verification of identity, residence, and household composition The two questionable self employment cases were identified to be worker specific (not wide-spread) errors. We will follow up with workers as errors are identified Completion Date: March 1, 2026 (first item), August 1, 2026 (second and third items), and April 1, 2026 (fourth item) Agency Contact: Ian Yaffe, Director, Office for Family Independence, DHHS, 207-592-1481

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Finding 1187109 (2025-010)

Material Weakness 2025

State of Maine

ME

Significant Deficiency Special Tests & Provisions

Department: Redacted Title: Redacted Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department agrees with the finding. The Department’s corrective action plan has been excluded to protect confidential information. The complete corrective action plan has been pro...

Department: Redacted Title: Redacted Questioned Costs: None Status: Corrective action in progress Corrective Action: The Department agrees with the finding. The Department’s corrective action plan has been excluded to protect confidential information. The complete corrective action plan has been provided to the Office of the State Auditor under separate cover. Completion Date: June 30, 2026 (first, second and third items), September 1, 2026 (fourth item), July 31, 2026 (fifth item), November 30, 2026 (sixth item), and March 31, 2028 (seventh item) Agency Contact: Shirley Browne, Deputy State Controller, Office of the State Controller, 207-626-8423

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Finding 1187100 (2025-001)

Material Weakness 2025

Housing Authority of the City of Lawton

OK

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

LAWTON HOUSING AUTHORITY 609 SW F Avenue Lawton, OK 73501 Phone No. (580) 353-7392 Fax No. (580) 353-6111 HOUSING AUTHORITY OF LAWTON, OKLAHOMA CORRECTIVE ACTION PLAN YEAR ENDED JUNE 30, 2025 Finding 2025-001-Interfund Payables Need To Be Reduced Condition Funds may not be permanently used and thus ...

LAWTON HOUSING AUTHORITY 609 SW F Avenue Lawton, OK 73501 Phone No. (580) 353-7392 Fax No. (580) 353-6111 HOUSING AUTHORITY OF LAWTON, OKLAHOMA CORRECTIVE ACTION PLAN YEAR ENDED JUNE 30, 2025 Finding 2025-001-Interfund Payables Need To Be Reduced Condition Funds may not be permanently used and thus transferred between funds. Low Rent funds must ultimately be used for Low Rent purposes, Housing Choice Voucher (HCV) funds used for HCV purposes, etc. Funds may be temporarily loaned in essence, when one fund pays overhead for the other, such as a split payroll. However, the loans should be promptly repaid, and the interfund receivables and payables kept to a minimum and in an evergreen situation. Corrective Action Planned: I am Anna Richman, Executive Director and Designated Person to answer these findings. As a new E.D., I have only recently become aware of this situation. To reduce the interfund amounts, the avenues we may pursue include but are not limited to the following: Nonfederal funds are maintained in the State and Local Fund. For reporting purposes, this fund is combined with the Low Rent program to comprise the General Fund. We may transfer some of these nonfederal funds to the Component Unit and the HCV Fund to allow them to reduce the interfund loans. Nonfederal funds may be used for this purpose. In addition, we may transfer an increased percentage of the HCV Admin fee to be periodically transferred to the General Fund. We also note that if and when the tangible property of the Veterans Resource Center is ever sold, the funds would revert to the General Fund. Person Responsible for Corrective Action: Anna Richman, Executive Director Telephone: (580) 353-7392 Housing Authority of Lawton Fax: (580) 353-6111 609 SW F Avenue Lawton, OK 73501 Anticipated Completion Date- June 30, 2026

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Finding 1187099 (2025-003)

Material Weakness 2025

Housing Authority of the City of Lawton

OK

Equipment & Real Property Management Procurement, Suspension & Debarment

Finding 2025-003-Inventory of Maintenance Equipment and Office Furniture Should Be Updated-Special Tests Condition Federal regulations require the authority to update its inventory of equipment and office furniture at least every two years. Corrective Action Planned: We plan to improve our methods a...

Finding 2025-003-Inventory of Maintenance Equipment and Office Furniture Should Be Updated-Special Tests Condition Federal regulations require the authority to update its inventory of equipment and office furniture at least every two years. Corrective Action Planned: We plan to improve our methods and we will take another inventory. Person Responsible for Corrective Action: Anna Richman, Executive Director Telephone: (580) 353-7392 Housing Authority of Lawton Fax: (580) 353-6111 609 SW F Avenue Lawton, OK 73501 Anticipated Completion Date- June 30, 2026

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Finding 1187098 (2025-002)

Material Weakness 2025

Housing Authority of the City of Lawton

OK

Internal Control / Segregation of Duties

Finding 2025-002-Internal Control Over Compliance Needs Improvement-Eligibility Condition It appears that there was not a representative check of tenant file and waiting list functions by a qualified second party. Auditing Statement of Auditing Standards (SAS) #115 dictates that either “absent or in...

Finding 2025-002-Internal Control Over Compliance Needs Improvement-Eligibility Condition It appears that there was not a representative check of tenant file and waiting list functions by a qualified second party. Auditing Statement of Auditing Standards (SAS) #115 dictates that either “absent or inadequate segregation of duties within a significant account or process” are defined by the Standard as at least a significant deficiency, if not a material weakness. The lack of a documented check noted in the first sentence is considered an inadequate segregation of duties. Corrective Action Planned: We have recently designated a person to perform and document quality control of waiting list and tenant file functions.Person Responsible for Corrective Action: Anna Richman, Executive Director Telephone: (580) 353-7392 Housing Authority of Lawton Fax: (580) 353-6111 609 SW F Avenue Lawton, OK 73501 Anticipated Completion Date- June 30, 2026

View Audit 394835

Corrective Action Plans

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