Finding 1218738 (2025-001)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2025
Accepted
2026-06-25
Audit: 404835

AI Summary

  • Core Issue: $73,452 in federal funds were duplicated in claims for the Alabama Medicaid Administrative Claiming Program.
  • Impacted Requirements: Compliance with OMB guidelines and Alabama Medicaid cost allocation plans was not met due to inadequate review processes.
  • Recommended Follow-Up: Implement reconciliation procedures and annual training for MAC Program Coordinators to prevent future errors.

Finding Text

HHS Medical Assistance Program-Federal Assistance Listing Number 93.778-Assisted Period: FYE September 30, 2025 Criteria: Compliance requirements for the program as shown on the Matrix of Compliance Requirements-OMB Compliance Supplement and Alabama Medicaid Administrative Claim Program (MAC) Public Assistance Cost Allocation Plan. Condition: Expenditures submitted for the Alabama Medicaid Administrative Claiming Program included expenditures supported by federal funds. Questioned Costs: $73,452. $73,452 relates to duplication of federal funds for individual participant salary and benefit costs and allocated costs. This amount was determined by inspecting documents used to complete claim for reimbursement. Context: 5% of the school districts participating in the MAC Program were examined. Of the 7 examined, 1 claimed expenditures that were supported by federal funds. The sample was a statistically valid sample. The claim quarters paid during the fiscal year were: July-September 2024, October-December 2024, January-March 2025 and April-June 2025. Effect: Duplication of federal funds. Cause: Lack of reconciliation and review procedures applied by participating school district MAC Program Coordinators to claim data prior to submission for payment. Recommendation: We recommend that Tallassee City Board of Education develop reconciliation and review procedures to be applied by the participating school districts prior to the quarterly claim submission. We also recommend that participating district MAC Program Coordinators be required to participate in training specific to the MAC claims process on an annual basis. New coordinators should be required to complete the training prior to submitting claims for reimbursement. Response: Tallassee City Board of Education agress with the finding and will immediately begin to develop additional procedures and policies based on the recommendations and disseminate the information to the participating districts.

Corrective Action Plan

Expenditures submitted for the Alabama Medicaid Administrative Claiming Program included expenditures supported by federal funds. Contact Person: Dr. Brock Nolin, Superintendent Corrective Action: Claims will be adjusted to correct the duplication of federal funds. Policies and procedures will be implemented according to the recommendations found in the Schedule of Findings and Questioned Costs. Proposed Completion Date: Prior to the submission of the July-September 2026 claim.

Categories

Allowable Costs / Cost Principles Cash Management

Programs in Audit

ALN Program Name Expenditures
93.778 GRANTS TO STATES FOR MEDICAID $74.05M
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $551,406
84.027 SPECIAL EDUCATION GRANTS TO STATES $439,224
10.553 SCHOOL BREAKFAST PROGRAM $317,258
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $91,929
10.555 NATIONAL SCHOOL LUNCH PROGRAM $62,678
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $37,773
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $23,897
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $22,940
84.358 RURAL EDUCATION $2,790
10.560 STATE ADMINISTRATIVE EXPENSES FOR CHILD NUTRITION $2,690
96.001 SOCIAL SECURITY DISABILITY INSURANCE $756