Single Audit Report — State of Alabama Federal Award Programs (Year Ended September 30, 2020)
Summary
Report 22-031 is the Single Audit of Federal Award Programs for the State of Alabama for October 1, 2019 through September 30, 2020, filed November 12, 2021 by the Department of Examiners of Public Accounts. It states that the State of Alabama expended $14,994,758,708 in federal awards during the 2019-2020 fiscal year. It also reports that significant deficiencies, a material weakness, and instances of noncompliance with federal grant requirements were found in the audit of federal award programs. A corrective action plan for finding 2020-008 states that the Department of Finance did not require verifications from subrecipients that expended $750,000 or more that they received an audit, and that it was unaware Subpart F applied to the Coronavirus Relief Fund.
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Cite this document
“Single Audit Report — State of Alabama Federal Award Programs (Year Ended September 30, 2020).”
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Report on the
Single Audit of Federal Award Programs Performed in
Accordance With the Single Audit Act Amendments of 1996
(Public Law 104-156) and the Audit Requirements of
Title 2 U. S. Code of Federal Regulations Part 200,
Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (Uniform Guidance)
State of Alabama
October 1, 2019 through September 30, 2020
Filed: November 12, 2021
Department of
Examiners of Public Accounts
401 Adams Avenue, Suite 280
Montgomery, Alabama 36104-4338
P.O. Box 302251
Montgomery, Alabama 36130-2251
Website: www.examiners.alabama.gov
Rachel Laurie Riddle, Chief Examiner
22-031
State of Alabama
Department of
Examiners of Public Accounts
P.O. Box 302251, Montgomery, AL 36130-2251
401 Adams Avenue, Suite 280
Montgomery, Alabama 36104-4338
Rachel Laurie Riddle Telephone (334) 242-9200
Chief Examiner FAX (334) 242-1775
Honorable Rachel Laurie Riddle
Chief Examiner of Public Accounts
Montgomery, Alabama 36130
Dear Madam:
Under the authority of the Code of Alabama 1975, Section 41-5A-19, I submit this report on
the Single Audit of Federal Award Programs Performed in Accordance with the Single Audit
Act Amendments of 1996 (Public Law 104-156) and the audit requirements of Title 2 U. S.
Code of Federal Regulations Part 200, Uniform Administrative Requirements for
Federal Awards (Uniform Guidance) for the State of Alabama for the period October 1, 2019
through September 30, 2020.
Respectfully submitted,
James E. Hall, CPA
Examiner of Public Accounts
State Audit Division Director
rb
22-031
Table of Contents
Page
Summary A
Contains items pertaining to the scope and objective of the audit,
a description of the contents of the report, and other information
pertaining to the State of Alabama Single Audit.
Exhibit #1 Schedule of Expenditures of Federal Awards – contains financial
information and notes relative to federal award programs. 1
Notes to the Schedule of Expenditures of Federal Awards 15
Exhibit #2 Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance With Government Auditing
Standards – a report on internal controls related to the financial
statements and on whether the State of Alabama complied with laws
and regulations which could have a direct and material effect on the
State’s financial statements. 18
Exhibit #3 Report on Compliance for Each Major Federal Program;
Report on Internal Control Over Compliance; and Report
on the Schedule of Expenditures of Federal Awards Required
by the Uniform Guidance – a report on internal controls over
compliance with requirements of federal statutes, regulations,
and the terms and conditions of federal awards applicable to major
federal programs; an opinion on whether the State complied with
federal statutes, regulations, and the terms and conditions of its
federal awards which could have a direct and material effect on
each major program; and a report on the Schedule of Expenditures
of Federal Awards. 21
Single Audit of Federal
Award Programs
State of Alabama
Table of Contents
Page
Exhibit #4 Schedule of Findings and Questioned Costs – A schedule
summarizing the results of audit findings relating to the financial
statements as required by Government Auditing Standards and
findings and questioned costs for federal awards as required by the
Uniform Guidance.
Section I – Summary of Examiner’s Results 26
Section II – Financial Statement Findings (GAGAS):
Department of Labor 28
Department of Finance 29
Section III – Federal Awards Findings and Questioned Costs:
Department of Public Health 30
Department of Labor 32
Alabama Medicaid Agency 38
Department of Finance 40
Exhibit #5 Summary Schedule of Prior Audit Findings – a report,
prepared by the management of State Agencies, which provides
the status of all audit findings included in the prior audit’s
Schedule of Findings and Questioned Costs. 42
Department of Labor
Department of Finance
Department of Human Resources
Alabama Medicaid Agency
Auditee Responses/Corrective Action Plans – responses by State Agencies
on the results of the audit and their plans for corrections.
Exhibit #6 Section II – Financial Statement Findings (GAGAS): 43
Department of Labor
Department of Finance
Exhibit #7 Section III – Federal Awards Findings and Questioned Costs: 44
Department of Public Health
Department of Labor
Alabama Medicaid Agency
Department of Finance
___________________________________________
Single Audit of Federal
Award Programs
State of Alabama
Department of
Examiners of Public Accounts
SUMMARY
Single Audit of Federal Award Programs
State of Alabama
October 1, 2019 through September 30, 2020
This report presents the results of an audit of federal award programs administered by the State
of Alabama contained in the Single Audit of the State of Alabama. This audit was conducted
in accordance with the requirements of the Department of Examiners of Public Accounts
under the authority of the Code of Alabama 1975, Section 41-5A-12.
Audit of General Purpose Financial Statements
The audit of the State of Alabama General Purpose Financial Statements for the fiscal
year ended September 30, 2020, which is a required component of a Single Audit,
was issued by the Department of Examiners of Public Accounts as Report Number 21-241 on
April 30, 2021. The audited Basic Financial Statements were included in the State of
Alabama Annual Comprehensive Financial Report prepared and published by the
Department of Finance. Included with the Annual Comprehensive Financial Report are the
Independent Auditor's Report and a Report on Compliance and on Internal Control Over
Financial Reporting Based on an Audit of Financial Statements Performed in Accordance
with Government Auditing Standards, both of which are required by Government Auditing
Standards for financial audits.
Single Audit
The Single Audit was performed in accordance with the requirements of the Single Audit Act
Amendments of 1996 and the audit requirements of Title 2 U. S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance). The objective of the Single Audit
was to determine whether the State of Alabama has complied with federal statutes,
regulations, and the terms and conditions of its federal awards applicable to its federal
programs. The audit was performed in accordance with generally accepted auditing standards
and Government Auditing Standards, issued by the Comptroller General of the United States.
22-031 A
This report is a statewide Single Audit report that includes federal award programs
administered by state agencies. The Federal programs and administering agencies
(component units of the State of Alabama) listed in the table below are not included in the
Schedule of Expenditures of Federal Awards and were not included in our audit. These
programs were audited in accordance with the Uniform Guidance by other auditors.
CFDA Federal
Component Unit Federal Program Number Expenditures
Housing Finance Authority Home Investment Partnerships Program 14.239 $ 9,560,858
Housing Finance Authority Housing Trust Fund 14.275 $ 63,354
Water Pollution Control Authority Capitalization Grants for Clean Water 66.458 $17,366,454
State Revolving Funds
Drinking Water Finance Authority Capitalization Grants for Drinking Water 66.468 $25,416,084
State Revolving Funds
We have also excluded federal award programs administered by state-supported colleges and
universities, which are a part of the financial reporting entity of the State of Alabama and
included in the Basic Financial Statements. The Single Audits of the state-supported colleges
and universities are performed and issued separately for each institution.
Material weaknesses in internal control were found during the audit of the Comprehensive
Annual Financial Report. These findings are reported in Exhibit 2, the Report on Internal
Control Over Financial Reporting and Compliance and Other Matters Based on an Audit of
Financial Statements Performed in Accordance with Government Auditing Standards.
Details of the findings and recommendations are included in the Schedule of Findings and
Questioned Costs.
Significant deficiencies, a material weakness, and instances of noncompliance with the
requirements of federal grant awards were found during the audit of federal award programs
(Single Audit). These findings are reported in Exhibit 3, the Report on Compliance for Each
Major Federal Program; Report on Internal Control Over Compliance; and Report on the
Schedule of Expenditures of Federal Awards Required by the Uniform Guidance. Details
of the findings and recommendations are included in the Schedule of Findings and Questioned
Costs.
22-031 B
Other Comments
This report includes the following Single Audit schedules and reports required by the Uniform
Guidance:
¨ Schedule of Expenditures of Federal Awards;
¨ Notes to the Schedule of Expenditures of Federal Awards;
¨ Report on Compliance and on Internal Control Over Financial Reporting Based on an
Audit of Financial Statements Performed in Accordance with Government Auditing
Standards;
¨ Report on Compliance for Each Major Federal Program; Report on Internal Control Over
Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by
the Uniform Guidance;
¨ Schedule of Findings and Questioned Costs;
¨ Summary Schedule of Prior Audit Findings; and
¨ Auditee Responses/Corrective Action Plans.
The State of Alabama expended $14,994,758,708 in federal awards during the 2019-2020
fiscal year. Federal awards received and expended by state agencies are shown on the
Schedule of Expenditures of Federal Awards (Exhibit 1). The federal programs are listed by
federal grantor agency. The state agencies administering the programs are shown in a
separate column.
EXIT CONFERENCE
At the completion of the audit, exit conferences were held with directors, chief financial
officers and other staff of agencies that administered major programs. An Auditee
Response/Corrective Action Plan for each agency with findings is included as Exhibit 6,
Section II - Financial Statement Findings, and Exhibit 7, Section III - Federal Awards
Findings and Questioned Costs.
22-031 C
Schedule of Expenditures of Federal Awards
For the Year Ended September 30, 2020
Federal Grantor/ Federal
Pass-Through Agency/ CFDA Pass-Through to
Program Title Number Expenditures Note Subrecipients Agency
DEPARTMENT OF AGRICULTURE
Plant and Animal Disease, Pest Control, and Animal Care 10.025 $ 1,346,685 $ - Agriculture and Industries
Conservation Reserve Program 10.069 280,042 - Forestry Commission
Aquaculture Grants Program 10.086 2,077 Agriculture and Industries
Market Protection and Promotion 10.163 30,600 - Agriculture and Industries
Specialty Crop Block Grant Program 10.169 568,543 - Agriculture and Industries
Trade Mitigation Program Eligible Recipient Agency Operational Funds 10.178 1,006,000 1,006,000 Education
State Mediation Grants 10.435 62,300 - Agriculture and Industries
Cooperative Agreements with States for Intrastate
Meat and Poultry Inspection 10.475 1,527,836 - Agriculture and Industries
Supplemental Nutrition Assistance Program (SNAP) Cluster
Supplemental Nutrition Assistance Program 10.551 1,407,199,305 - Human Resources
State Administrative Matching Grants for the Supplemental
Nutrition Assistance Program 10.561 53,732,456 - Human Resources
Total SNAP Cluster 1,460,931,761 -
Child Nutrition Cluster
School Breakfast Program (SBP) 10.553 53,608,604 53,608,604 Education
National School Lunch Program (NSLP) 10.555 243,356,403 3A 243,356,403 Education
Special Milk Program for Children (SMP) 10.556 11,988 11,988 Education
Summer Food Service Program for Children (SFSPC) 10.559 22,241,631 3A 21,920,564 Education
Total Child Nutrition Cluster 319,218,626 318,897,559
WIC Special Supplemental Nutrition Program for Women, Infants, and Children 10.557 106,579,374 3B 4,768,106 Public Health
Child and Adult Care Food Program 10.558 44,788,734 44,469,878 Education
State Administrative Expenses for Child Nutrition 10.560 5,426,546 1,637,494 Education
Food Distribution Cluster
Commodity Supplemental Food Program 10.565 2,085,226 3A 2,053,111 Education
Emergency Food Assistance Program - Administrative Costs 10.568 6,841,753 6,830,569 Education
Emergency Food Assistance Program - Food Commodities 10.569 29,269,591 3A 29,269,591 Education
Total Food Distribution Cluster 38,196,570 38,153,271
CACFP Training Grants 10.536 97,768 - Education
WIC Farmers' Market Nutrition Program (FMNP) 10.572 1,171,558 - Agriculture and Industries
Farm to School Grant Program 10.575 (523) - Agriculture and Industries/Education
WIC Grants to States 10.578 637,054 - Public Health
Child Nutrition Discretionary Grants Limited Availability 10.579 893,729 379,783 Education
Supplemental Nutrition Assistance Program, Process and
Technology Improvement Grants 10.580 438,076 - Human Resources
Single Audit of Federal
Award Programs
State of Alabama 1 Exhibit #1
Schedule of Expenditures of Federal Awards
For the Year Ended September 30, 2020
Federal Grantor/ Federal
Pass-Through Agency/ CFDA Pass-Through to
Program Title Number Expenditures Note Subrecipients Agency
Fresh Fruit and Vegetable Program 10.582 2,836,483 2,827,042 Education
Forestry Research 10.652 340,136 - Forestry Commission
Cooperative Forestry Assistance 10.664 3,307,928 2,392 Forestry Commission
Schools and Roads - Grants to States 10.665 1,511,129 1,511,129 Finance
Forestry Legacy Program 10.676 61,108 - Forestry Commission
Forest Health Protection 10.680 70,445 19,948 Forestry Commission
Good Neighbor Authority 10.691 48,569 - Conservation and Natural Resources/Forestry Commission
Resource Conservation and Development 10.901 34,666 - Soil and Water Conservation Committee
Soil and Water Conservation 10.902 17,790 - Soil and Water Conservation Committee/Geological Survey
Watershed Protection and Flood Prevention 10.904 854,100 Soil and Water Conservation Committee
Environmental Quality Incentives Program 10.912 347,087 - Soil and Water Conservation Committee/Conservation and
Natural Resources/Forestry Commission
Conservation Stewardship Program 10.924 37,277 - Soil and Water Conservation Committee
Regional Conservation Partnership Program 10.932 32,770 - Soil and Water Conservation Committee
Feral Swine Eradication and Control Pilot Program 10.934 313,017 - Soil and Water Conservation Committee
Other Federal Assistance
National Animal Health Lab Network (NAHLN) Agreement 10.Unknown 675,390 - Agriculture and Industries
Total Department of Agriculture 1,993,691,251 413,672,602
DEPARTMENT OF COMMERCE
Interjurisdictional Fisheries Act of 1986 11.407 286,405 - Conservation and Natural Resources
Coastal Zone Management Administration Awards 11.419 1,325,287 347,663 Conservation and Natural Resources
Coastal Zone Management Estuarine Research Reserves 11.420 867,641 13,738 Conservation and Natural Resources
Cooperative Fishery Statistics 11.434 696,032 - Conservation and Natural Resources
Southeast Area Monitoring and Assessment Program 11.435 162,122 127,600 Conservation and Natural Resources
Regional Fishery Management Councils 11.441 35,309 - Conservation and Natural Resources
State and Local Implementation Grant Program 11.549 13,549 - Office of Information Technology
Other Federal Assistance
Joint Enforcement Contract (NOAA) 11.Unknown 311,236 - Conservation and Natural Resources
Total Department of Commerce 3,697,581 489,001
DEPARTMENT OF DEFENSE
Navigation Projects 12.107 708,082 809 Conservation and Natural Resources
Basic and Applied Scientific Research 12.300 38,152 - Geological Survey
National Guard Military Operations and Maintenance (O&M) Projects 12.401 51,591,031 - Military Department
Troops to Teachers Grant Program 12.620 41,303 41,024 Education
Total Department of Defense 52,378,568 41,833
Single Audit of Federal
Award Programs
State of Alabama 2 Exhibit #1
Schedule of Expenditures of Federal Awards
For the Year Ended September 30, 2020
Federal Grantor/ Federal
Pass-Through Agency/ CFDA Pass-Through to
Program Title Number Expenditures Note Subrecipients Agency
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Manufactured Home Dispute Resolution 14.171 347,119 - Manufactured Housing Commission
Community Development Block Grants/State's Program
and Non-Entitlement Grants in Hawaii 14.228 24,094,220 23,054,528 Economic and Community Affairs
Emergency Solutions Grant Program 14.231 2,527,804 2,378,037 Economic and Community Affairs
Shelter Plus Care 14.238 273,610 273,610 Mental Health
Housing Opportunities for Persons with AIDS 14.241 1,513,882 1,455,239 Economic and Community Affairs
Continuum of Care Program 14.267 385 385 Mental Health
Hurricane Sandy Community Development Block Grant Disaster
Recovery Grants (CDBG-DR) 14.269 723,168 615,471 Economic and Community Affairs
Total Department of Housing and Urban Development 29,480,188 27,777,270
DEPARTMENT OF INTERIOR
Regulation of Surface Coal Mining and Surface Effects
of Underground Coal Mining 15.250 1,282,497 - Surface Mining Commission
Abandoned Mine Land Reclamation (AMLR) 15.252 3,659,178 - Department of Labor
Fish and Wildlife Cluster
Sport Fish Restoration 15.605 5,678,641 979,451 Conservation and Natural Resources/
Environmental Management
Wildlife Restoration and Basic Hunter Education 15.611 9,791,023 322,490 Conservation and Natural Resources
Total Fish and Wildlife Cluster 15,469,664 1,301,941
Marine Minerals Activities 15.424 46,333 - Geological Survey
Mineral Leasing Act 15.437 1,042,863 - Finance
Fish and Wildlife Management Assistance 15.608 53,522 - Conservation & Natural Resources
Cooperative Endangered Species Conservation Fund 15.615 11,305,033 336,560 Conservation & Natural Resources
Enhanced Hunter Education and Safety 15.626 182,911 - Conservation & Natural Resources
Partners for Fish and Wildlife 15.631 14,180 - Conservation & Natural Resources
State Wildlife Grants 15.634 711,584 350,682 Conservation & Natural Resources
Research Grants 15.650 15,129 14,933 Conservation & Natural Resources/Geological Survey
Endangered Species Conservation - Recovery Implementation Funds 15.657 23,182 - Conservation & Natural Resources
U .S. Geological Survey Research and Data Collection 15.808 41,482 - Geological Survey
National Cooperative Geologic Mapping 15.810 135,367 - Geological Survey
National Geological and Geophysical Data Preservation 15.814 39,931 - Geological Survey
Historic Preservation Fund Grants-In-Aid 15.904 847,365 21,349 Historical Commission
Outdoor Recreation Acquisition, Development and Planning 15.916 1,326,747 1,325,656 Economic and Community Affairs
National Ground-Water Monitoring Network 15.980 79,360 - Geological Survey
Water Use and Data Research 15.981 56,563 - Economic and Community Affairs
Total Department of Interior 36,332,891 3,351,121
Single Audit of Federal
Award Programs
State of Alabama 3 Exhibit #1
Schedule of Expenditures of Federal Awards
For the Year Ended September 30, 2020
Federal Grantor/ Federal
Pass-Through Agency/ CFDA Pass-Through to
Program Title Number Expenditures Note Subrecipients Agency
DEPARTMENT OF JUSTICE
Sexual Assault Services Formula Program 16.017 377,245 358,949 Economic and Community Affairs
Coronavirus Emergency Supplemental Funding Program 16.034 1,712,555 1,648,387 Economic and Community Affairs
Joint Law Enforcement Operations (JLEO) 16.111 11,181 - Alabama Law Enforcement Agency
Juvenile Justice and Delinquency Prevention 16.540 373,834 252,576 Economic and Community Affairs/Prosecution Services
Missing Children's Assistance 16.543 264,952 - Alabama Law Enforcement Agency
State Justice Statistics Program for Statistical Analysis Centers 16.550 206,248 - Alabama Law Enforcement Agency
National Criminal History Improvement Program (NCHIP) 16.554 217,420 - Alabama Law Enforcement Agency
Crime Victim Assistance 16.575 37,988,096 26,089,141 Economic and Community Affairs
Crime Victims Compensation 16.576 1,375,000 - Crime Victims Compensation
Crime Victim Assistance/Discretionary Grants 16.582 28,339 - Economic and Community Affairs
Violence Against Women Formula Grants 16.588 2,196,705 1,778,057 Economic and Community Affairs
Residential Substance Abuse Treatment for State Prisoners 16.593 484,500 - Economic and Community Affairs
Project Safe Neighborhoods 16.609 262,547 202,073 Economic and Community Affairs
Public Safety Partnership and Community Policing Grants 16.710 307,134 - Alabama Law Enforcement Agency
Edward Byrne Memorial Justice Assistance Grant Program 16.738 2,992,089 2,184,892 Economic and Community Affairs
DNA Backlog Reduction Program 16.741 1,278,312 - Forensic Sciences
Paul Coverdell Forensic Sciences Improvement Grant Program 16.742 272,357 - Economic and Community Affairs
Support for Adam Walsh Act Implementation Grant Program 16.750 170,968 - Prosecution Services
Harold Rogers Prescription Drug Monitoring Program 16.754 767,301 398,286 Mental Health/Public Health
Second Chance Act Reentry Initiative 16.812 13,307 - Pardons and Paroles
NCIS Act Record Improvement Program 16.813 (530) - Alabama Law Enforcement Agency
Emergency Law Enforcement Assistance Grant 16.824 696,073 696,073 Economic and Community Affairs
Swift, Certain, and Fair (SCF) Supervision Program: Including Project HOPE 16.828 209,320 - Pardons and Paroles
Comprehensive Opioid Abuse Site-Based Program 16.838 67,810 56,143 Mental Health
STOP School Violence 16.839 29,197 26,222 Education
Equitable Sharing Program 16.922 423,677 - Alabama Law Enforcement Agency
Other Federal Assistance
Drug Enforcement Agency Cooperative Agreements 16.Unknown 173,094 - Alabama Law Enforcement Agency
Federal Bureau of Investigation 16.Unknown 30,706 - Alabama Law Enforcement Agency
United States Marshals 16.Unknown 32,127 - Alabama Law Enforcement Agency
Total Department of Justice 52,961,564 33,690,799
DEPARTMENT OF LABOR
Labor Force Statistics 17.002 1,114,809 - Department of Labor
Compensation and Working Conditions 17.005 91,781 - Department of Labor
Single Audit of Federal
Award Programs
State of Alabama 4 Exhibit #1
Schedule of Expenditures of Federal Awards
For the Year Ended September 30, 2020
Federal Grantor/ Federal
Pass-Through Agency/ CFDA Pass-Through to
Program Title Number Expenditures Note Subrecipients Agency
Employment Service Cluster
Employment Service/Wagner-Peyser Funded Activities 17.207 7,544,862 - Department of Labor
Disabled Veterans' Outreach Program (DVOP) 17.801 2,852,202 - Department of Labor
Total Employment Service Cluster 10,397,064 -
Unemployment Insurance 17.225 3,471,910,878 3C - Department of Labor
Senior Community Service Employment Program 17.235 1,428,717 1,368,287 Senior Services
Trade Adjustment Assistance 17.245 3,966,534 - Department of Labor
WIOA Cluster
WIOA Adult Program 17.258 18,931,541 15,067,477 Commerce
WIOA Youth Activities 17.259 13,591,894 10,349,333 Commerce
WIOA Dislocated Worker Formula Grants 17.278 24,552,128 17,431,396 Commerce
Total WIOA Cluster 57,075,563 42,848,206
Workforce Data Quality Initiative Grant 17.261 997,369 - Department of Labor
Reentry Employment Opportunities 17.270 85,000 - Department of Labor
WIOA National Dislocated Worker Grants/Workforce
Investment Act (WIA) National Emergency Grants 17.277 994,695 - Commerce
Apprenticeship USA Grants 17.285 34,833 28,451 Commerce
Total Department of Labor 3,548,097,243 44,244,944
DEPARTMENT OF TRANSPORTATION
Airport Improvement Program 20.106 28,196 - Transportation
Highway Research and Development Program 20.200 111,649 - Transportation
Highway Planning and Construction Cluster
Highway Planning and Construction 20.205 893,772,575 5,428,968 Transportation
Recreational Trails Program 20.219 3,060,817 1,882,433 Economic and Community Affairs
Appalachian Development Highway System 23.003 213,646 - Transportation
Total Highway Planning and Construction Cluster 897,047,038 7,311,401
FMCSA Cluster
Motor Carrier Safety Assistance 20.218 7,002,172 - Alabama Law Enforcement Agency
Motor Carrier Safety Assistance High Priority Activities Grants
and Cooperative Agreements 20.237 166,131 - Alabama Law Enforcement Agency
Total FMCSA Cluster 7,168,303 -
Single Audit of Federal
Award Programs
State of Alabama 5 Exhibit #1
Schedule of Expenditures of Federal Awards
For the Year Ended September 30, 2020
Federal Grantor/ Federal
Pass-Through Agency/ CFDA Pass-Through to
Program Title Number Expenditures Note Subrecipients Agency
Performance and Registration Information Systems Management 20.231 43,702 - Alabama Law Enforcement Agency
Commercial Driver's License Program Implementation Grant 20.232 326,392 - Alabama Law Enforcement Agency
Safety Data Improvement Program 20.234 261,056 - Alabama Law Enforcement Agency
Railroad Safety 20.301 2,304 - Public Service Commission
Capital Assistance to States - Intercity Passenger Rail Service 20.317 38,671 - Economic and Community Affairs
Federal Transit Cluster
Federal Transit Capital Investment Grants 20.500 1,210,363 1,210,363 Transportation
Federal Transit Formula Grants 20.507 4,730,456 4,730,456 Transportation
Total Federal Transit Cluster 5,940,819 5,940,819
Formula Grants for Rural Areas 20.509 24,063,161 17,477,402 Transportation
Transit Services Programs Cluster
Enhanced Mobility of Seniors and Individuals with Disabilities 20.513 2,105,463 2,105,463 Transportation
Job Access and Reverse Commute Program 20.516 50,716 50,716 Transportation
New Freedom Program 20.521 406,604 406,604 Transportation
Total Transit Services Programs Cluster 2,562,783 2,562,783
Highway Safety Cluster
State and Community Highway Safety 20.600 4,100,883 2,622,981 Economic and Community Affairs
National Priority Safety Programs 20.616 3,304,093 2,639,582 Economic and Community Affairs
Total Highway Safety Cluster 7,404,976 5,262,563
National Highway Traffic Safety Administration (NHTSA) Discretionary
Grants and Cooperative Agreements 20.614 60,045 - Alabama Law Enforcement Agency
Pipeline Safety Program State Base Grant 20.700 747,000 - Public Service Commission
Interagency Hazardous Materials Public Sector
Training and Planning Grants 20.703 335,850 259,936 Emergency Management
PHMSA Pipeline Safety Underground Natural Gas Storage Grant 20.725 2,952 - Public Service Commission
Total Department of Transportation 946,144,897 38,814,904
DEPARTMENT OF THE TREASURY
Resources and Ecosystems Sustainability, Tourist Opportunities, and
Revived Economies of the Gulf Coast States 21.015 10,898,784 10,742,960 Conservation and Natural Resources
Equitable Sharing 21.016 172,718 - Alabama Law Enforcement Agency
COVID-19 Coronavirus Relief Fund Under CARES Act 21.019 825,610,459 169,783,598 Finance
Total Department of the Treasury 836,681,961 180,526,558
Single Audit of Federal
Award Programs
State of Alabama 6 Exhibit #1
Schedule of Expenditures of Federal Awards
For the Year Ended September 30, 2020
Federal Grantor/ Federal
Pass-Through Agency/ CFDA Pass-Through to
Program Title Number Expenditures Note Subrecipients Agency
APPALACHIAN REGIONAL COMMISSION
Appalachian Area Development 23.002 5,660,875 5,238,269 Economic and Community Affairs/Transportation
Total Appalachian Regional Commission 5,660,875 5,238,269
GENERAL SERVICES ADMINISTRATION
Donation of Federal Surplus Personal Property 39.003 7,337,713 3D 3,607,457 Economic and Community Affairs
Total General Services Administration 7,337,713 3,607,457
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
Aeronautics 43.002 192,911 190,221 Space Science Exhibit
Total National Aeronautics and Space Administration 192,911 190,221
NATIONAL ENDOWMENT FOR THE ARTS
Promotion of the Arts Partnership Agreements 45.025 512,900 512,900 Council on the Arts
Total National Endowment for the Arts 512,900 512,900
INSTITUTE OF MUSEUM AND LIBRARY SERVICES
Grants to States 45.310 2,624,745 861,374 Public Library Service
Total Institute of Museum and Library Services 2,624,745 861,374
SMALL BUSINESS ADMINISTRATION
State Trade Expansion 59.061 56,157 - Commerce
Total Small Business Administration 56,157 -
TENNESSEE VALLEY AUTHORITY
Other Federal Assistance
Other Federal Assistance-TVA 62.Unknown 314,759 - Emergency Management Agency/Conservation
and Natural Resources
Total Tennessee Valley Authority 314,759 -
DEPARTMENT OF VETERANS AFFAIRS
Grants to States for Construction of State Home Facilities 64.005 876,842 - Veterans' Affairs
Veterans Prescription Service 64.012 524,897 - Veterans' Affairs
Veterans State Domiciliary Care 64.014 1,469,910 - Veterans' Affairs
Veterans State Nursing Home Care 64.015 35,709,153 - Veterans' Affairs
Burial Expenses Allowance for Veterans 64.101 234,629 - Veterans' Affairs
Veterans Cemetery Grants Program 64.203 - - Veterans' Affairs
Total Department of Veterans Affairs 38,815,431 -
Single Audit of Federal
Award Programs
State of Alabama 7 Exhibit #1
Schedule of Expenditures of Federal Awards
For the Year Ended September 30, 2020
Federal Grantor/ Federal
Pass-Through Agency/ CFDA Pass-Through to
Program Title Number Expenditures Note Subrecipients Agency
ENVIRONMENTAL PROTECTION AGENCY
State Indoor Radon Grants 66.032 69,031 - Public Health
Surveys, Studies, Research, Investigations, Demonstrations and
Special Purpose Activities Relating to the Clean Air Act 66.034 736,623 - Environmental Management
State Clean Diesel Grant Program 66.040 128,994 - Environmental Management
Lead Testing in School and Child Care Program Drinking Water 66.444 53,716 - Environmental Management
Water Quality Management Planning 66.454 139,921 - Environmental Management
Regional Wetland Program Development Grants 66.461 60,721 - Environmental Management
Gulf of Mexico Program 66.475 393,332 - Forestry Commission
Performance Partnership Grants 66.605 10,914,638 1,416,634 Environmental Management
TSCA Title IV State Lead Grants Certification of Lead-Based
Paint Professionals 66.707 699,505 185,486 Public Health
Superfund State, Political Subdivision, and Indian Tribe
Site-Specific Cooperative Agreements 66.802 203,129 - Environmental Management
Underground Storage Tank Prevention, Detection and Compliance Program 66.804 501,074 - Environmental Management
Leaking Underground Storage Tank Trust Fund Corrective Action Program 66.805 932,285 - Environmental Management
Superfund State and Indian Tribe Core Program Cooperative Agreements 66.809 47,287 - Environmental Management
State and Tribal Response Program Grants 66.817 5,857 - Environmental Management
Other Federal Assistance
Cooperative Pesticide Recordkeeping 66.Unknown 438,000 - Agriculture and Industries
Total Environmental Protection Agency 15,324,113 1,602,120
DEPARTMENT OF ENERGY
State Energy Program 81.041 740,029 367,702 Economic and Community Affairs
Weatherization Assistance for Low-Income Persons 81.042 2,361,191 2,075,719 Economic and Community Affairs
Transport of Transuranic Wastes to the Waste Isolation Pilot Plant:
States and Tribal Concerns, Proposed Solutions 81.106 114,126 - Emergency Management
State Energy Program Special Projects 81.119 87,096 37,739 Economic and Community Affairs
Other Federal Assistance
Petroleum Violation Escrow 81.Unknown (287,915) (288,049) Economic and Community Affairs
Total Department of Energy 3,014,527 2,193,111
Single Audit of Federal
Award Programs
State of Alabama 8 Exhibit #1
Schedule of Expenditures of Federal Awards
For the Year Ended September 30, 2020
Federal Grantor/ Federal
Pass-Through Agency/ CFDA Pass-Through to
Program Title Number Expenditures Note Subrecipients Agency
DEPARTMENT OF EDUCATION
Title I Grants to Local Educational Agencies 84.010 245,525,702 241,266,463 Education
Migrant Education State Grant Program 84.011 1,615,802 1,177,160 Education
Title I State Agency Program for Neglected and Delinquent
Children and Youth 84.013 305,768 301,389 Education
Special Education Cluster (IDEA)
Special Education Grants to States 84.027 181,302,969 172,994,476 Education
Special Education Preschool Grants 84.173 4,785,871 4,769,313 Education
Total Special Education Cluster (IDEA) 186,088,840 177,763,789
Career and Technical Education - Basic Grants to States 84.048 19,216,944 16,769,666 Education
Rehabilitation Services Vocational Rehabilitation Grants to States 84.126 65,142,704 3F - Rehabilitation Services
Migrant Education Coordination Program 84.144 38,299 3,249 Education
Rehabilitation Services Client Assistance Program 84.161 157,700 - Rehabilitation Services
Rehabilitation Services Independent Living Services
for Older Individuals Who are Blind 84.177 419,916 - Rehabilitation Services
Special Education - Grants For Infants and Families 84.181 8,778,009 1,527,365 Rehabilitation Services
Supported Employment Services for Individuals with the Most
Significant Disabilities 84.187 374,388 - Rehabilitation Services
Education for Homeless Children and Youth 84.196 1,231,724 1,153,254 Education
Twenty-First Century Community Learning Centers 84.287 11,609,892 11,213,227 Education
Special Education - State Personnel Development 84.323 1,346,032 1,119,391 Education
Rural Education 84.358 3,720,752 3,508,752 Education
English Language Acquisition State Grants 84.365 3,502,249 3,323,164 Education
Supporting Effective Instruction State Grant (formerly
Improving Teacher Quality State Grants) 84.367 30,019,253 29,476,010 Commission on Higher Education/Education
Grants for State Assessments and Related Activities 84.369 1,403,339 134,041 Education
School Improvement Grants 84.377 2,727,777 2,664,436 Education
Education Innovation and Research 84.411 188,632 110,952 Education
Student Support and Academic Enrichment Program 84.424 14,980,157 14,934,923 Education
Education Stabilization Fund 84.425 27,231,440 23,351,002 Education
Total Department of Education 625,625,319 529,798,233
GULF COAST ECOSYSTEM RESTORATION COUNCIL
Gulf Coast Ecosystem Restoration Council Comprehensive
Plan Component Program 87.051 1,209,584 710,372 Conservation and Natural Resources/Geological Survey
Gulf Coast Ecosystem Restoration Council Oil Spill Impact Program 87.052 559,364 - Conservation and Natural Resources
Total Gulf Coast Ecosystem Restoration Council 1,768,948 710,372
Single Audit of Federal
Award Programs
State of Alabama 9 Exhibit #1
Schedule of Expenditures of Federal Awards
For the Year Ended September 30, 2020
Federal Grantor/ Federal
Pass-Through Agency/ CFDA Pass-Through to
Program Title Number Expenditures Note Subrecipients Agency
NATIONAL ARCHIVES AND RECORDS ADMINISTRATION
National Historical Publications and Records Grants 89.003 97,889 - Archives and History
Total National Archives and Records Administration 97,889 -
ELECTIONS ASSISTANCE COMMISSION
Help America Vote Act Requirements Payments 90.401 269,756 3E - Secretary of State
2018 HAVA Election Security Grants 90.404 4,911,884 3E - Secretary of State
Total Elections Assistance Commission 5,181,640 -
DEPARTMENT OF HEALTH AND HUMAN SERVICES
Special Programs for the Aging - Title VII, Chapter 3: Programs
for Prevention of Elder Abuse, Neglect and Exploitation 93.041 76,198 76,198 Senior Services
Special Programs for the Aging - Title VII, Chapter 2: Long-Term
Care Ombudsman Services for Older Individuals 93.042 330,217 330,217 Senior Services
Special Programs for the Aging - Title III, Part D:
Disease Prevention and Health Promotion Services 93.043 287,975 269,349 Senior Services
Aging Cluster
Special Programs for the Aging - Title III, Part B: Grants for
Supportive Services and Senior Centers 93.044 5,687,704 5,278,735 Senior Services
Special Programs for the Aging - Title III, Part C: Nutrition Services 93.045 15,839,194 15,004,418 Senior Services
Nutrition Services Incentive Program 93.053 3,485,040 3,485,040 Senior Services
Total Aging Cluster 25,011,938 23,768,193
Special Programs for the Aging - Title IV and Title II - Alabama Medicaid Agency/Senior Services/
Discretionary Projects 93.048 304,392 232,207 Human Resources
National Family Caregiver Support, Title III Part E 93.052 2,895,640 2,757,060 Senior Services
Public Health Emergency Preparedness 93.069 6,706,665 662,228 Public Health
Medicare Enrollment Assistance Program 93.071 471,302 448,355 Senior Services
Lifespan Respite Care Program 93.072 236,183 220,385 Senior Services
Birth Defects and Developmental Disabilities - Prevention and Surveillance 93.073 7,826 - Public Health
Cooperative Agreements to Promote Adolescent Health through
School-Based HIV/STD Prevention and School-Based Surveillance 93.079 30,553 - Education
Guardianship Assistance 93.090 2,496,574 - Human Resources
Affordable Care Act (ACA) Personal Responsibility Education Program 93.092 338,679 32,228 Public Health
Food and Drug Administration Research 93.103 2,379,132 11,374 Ag and Industries/Public Health
Maternal and Child Health Federal Consolidated Programs 93.110 291,809 189,303 Mental Health/Public Health/Rehabilitation Services
Project Grants and Cooperative Agreements for
Tuberculosis Control Programs 93.116 891,438 164,741 Public Health
Acquired Immunodeficiency Syndrome (AIDS) Activity 93.118 101,240 60,331 Public Health
Emergency Medical Services for Children 93.127 133,514 - Public Health
Single Audit of Federal
Award Programs
State of Alabama 10 Exhibit #1
Schedule of Expenditures of Federal Awards
For the Year Ended September 30, 2020
Federal Grantor/ Federal
Pass-Through Agency/ CFDA Pass-Through to
Program Title Number Expenditures Note Subrecipients Agency
Cooperative Agreements to States/Territories for the Coordination
and Development of Primary Care Offices 93.130 170,979 - Public Health
Injury Prevention and Control Research and State
and Community Based Programs 93.136 2,628,160 914,317 Public Health
Projects for Assistance in Transition from Homelessness (PATH) 93.150 594,541 594,541 Mental Health
Disabilities Prevention 93.184 234,140 39,233 Public Health
Childhood Lead Poisoning Prevention Projects, State and Local Childhood Lead
Poisoning Prevention and Surveillance of Blood Lead Levels in Children 93.197 496,486 132,783 Public Health
Family Planning - Services 93.217 5,507,757 945,198 Public Health
Traumatic Brain Injury State Demonstration Grant Program 93.234 101,298 - Rehabilitation Services
Title V State Sexual Risk Avoidance Education (Title V State SRAE) Program 93.235 846,042 237,440 Public Health
State Rural Hospital Flexibility Program 93.241 381,108 307,407 Public Health
Substance Abuse and Mental Health Services Projects of
Regional and National Significance 93.243 8,245,462 6,869,689 Education/Mental Health/Public Health
Universal Newborn Hearing Screening 93.251 190,756 73,575 Public Health
Immunization Cooperative Agreements 93.268 65,210,735 3G 1,550,074 Public Health
Viral Hepatitis Prevention and Control 93.270 150,165 21,520 Public Health
Centers for Disease Control and Prevention Investigations and
Technical Assistance 93.283 4,690,887 579,247 Public Health
State Partnership Grant Program to Improve Minority Health 93.296 146,389 67,180 Public Health
Small Rural Hospital Improvement Grant Program 93.301 3,817,835 3,798,889 Public Health
PPHF 2018: Office of Smoking and Health-National State-Based
Tobacco Control Programs-Financed in Part by 2018 Prevention
and Public Health funds (PPHF) 93.305 972,565 105,900 Public Health
Early Hearing Detection and Intervention Information System (EHDI-IS)
Surveillance Program 93.314 138,561 26,028 Public Health
Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) 93.323 3,351,034 4,500 Public Health
State Health Insurance Assistance Program 93.324 763,146 697,558 Senior Services
Behavioral Risk Factor Surveillance System 93.336 269,690 269,690 Public Health
Public Health Emergency Response: Cooperative Agreement for
Emergency Response: Public Health Crisis Response 93.354 3,698,033 - Public Health
Flexible Funding Model - Infrastructure Development and Maintenance for
State Manufacture Food Regulatory Program 93.367 144,490 - Public Health
ACL Independent Living State Grants 93.369 157,598 138,569 Senior Services
Improving the Health of Americans through Prevention and
Management of Diabetes and Heart Disease and Stroke - Financed in
Part by 2018 Prevention and Public Health Funds 93.426 1,672,625 469,272 Public Health
Every Student Succeeds Act/Preschool Development Grants 93.434 8,979,156 7,278,336 Early Childhood Education
Well-Integrated Screening and Evaluation for Women Across the Nation 93.436 780,375 372,236 Public Health
ACL Assistive Technology 93.464 415,292 - Rehabilitation Services
Pregnancy Assistance Fund Program 93.500 842,697 721,049 Early Childhood Education
Single Audit of Federal
Award Programs
State of Alabama 11 Exhibit #1
Schedule of Expenditures of Federal Awards
For the Year Ended September 30, 2020
Federal Grantor/ Federal
Pass-Through Agency/ CFDA Pass-Through to
Program Title Number Expenditures Note Subrecipients Agency
Promoting Safe and Stable Families 93.556 4,701,816 - Human Resources
Temporary Assistance for Needy Families (TANF) 93.558 89,079,172 - Human Resources
Child Support Enforcement 93.563 41,204,943 3H - Human Resources
Refugee and Entrant Assistance State/Replacement
Designee Administered Programs 93.566 53,943 - Alabama Medicaid Agency
Low-Income Home Energy Assistance 93.568 50,836,497 48,006,466 Economic and Community Affairs
Community Services Block Grant 93.569 15,734,692 14,871,154 Economic and Community Affairs
Child Care Development Cluster
Child Care and Development Block Grant 93.575 163,755,099 - Human Resources
Child Care Mandatory and Matching Funds of the Child Care and
Development Fund 93.596 44,228,562 - Human Resources
Total Child Care Development Cluster 207,983,661 -
State Court Improvement Program 93.586 485,479 - Administrative Office of Courts
Community-Based Child Abuse Prevention Grants 93.590 394,414 315,531 Child Abuse and Neglect Prevention
Grants to States for Access and Visitation Programs 93.597 139,795 - Administrative Office of Courts
Chafee Education and Training Vouchers Program (ETV) 93.599 577,624 - Human Resources
Head Start 93.600 10,500,632 - Early Childhood Education/Human Resources
Adoption and Legal Guardianship Incentive Payments 93.603 414,869 - Human Resources
Developmental Disabilities Basic Support and Advocacy Grants 93.630 1,087,956 662,224 Mental Health
Children's Justice Grants to States 93.643 141,433 - Human Resources
Stephanie Tubbs Jones Child Welfare Services Program 93.645 5,240,166 - Human Resources
Foster Care - Title IV-E 93.658 38,158,828 - Human Resources
Adoption Assistance 93.659 25,783,688 - Human Resources
Social Services Block Grant 93.667 23,807,510 - Human Resources
Child Abuse and Neglect State Grants 93.669 542,202 - Human Resources
Family Violence Prevention and Services/Domestic
Violence Shelter and Supportive Services 93.671 1,606,924 1,511,679 Economic and Community Affairs
Chafee Foster Care Independence Program 93.674 1,512,194 - Human Resources
Ending the HIV Epidemic: A Plan for America -- Ryan White HIV/AIDS
Program Parts A and B 93.686 25,000 25,000 Public Health
State Public Health Approaches for Ensuring Quitline Capacity Funded
in Part by Prevention and Public Health Funds (PPHF) 93.735 311,770 289,443 Public Health
Elder Abuse Prevention Interventions Program 93.747 89,648 Human Resources
PPHF: Health Care Surveillance/Health Statistics Surveillance Program
State and Local Public Health Actions to Prevent Obesity, Diabetes,
Heart Disease and Stroke 93.757 1,846,537 - Public Health
Children's Health Insurance Program 93.767 228,704,446 42,838 Public Health
Single Audit of Federal
Award Programs
State of Alabama 12 Exhibit #1
Schedule of Expenditures of Federal Awards
For the Year Ended September 30, 2020
Federal Grantor/ Federal
Pass-Through Agency/ CFDA Pass-Through to
Program Title Number Expenditures Note Subrecipients Agency
Medicaid Cluster
State Medicaid Fraud Control Units 93.775 1,088,231 - Attorney General
State Survey and Certification of Health Care Providers
and Suppliers (Title XVIII) Medicare 93.777 7,008,429 493 Alabama Medicaid Agency/Public Health
Medical Assistance Program 93.778 5,389,229,948 45,284,215 Alabama Medicaid Agency
Total Medicaid Cluster 5,397,326,608 45,284,708
Opioid STR 93.788 9,129,937 7,834,312 Mental Health
Money Follows the Person Rebalancing Demonstration 93.791 2,520,139 - Alabama Medicaid Agency
Organized Approaches to Increase Colorectal Cancer Screening 93.800 357,243 198,665 Public Health
Hospital Preparedness Program (HPP) Ebola Preparedness and
Response Activities 93.817 164,814 157,810 Public Health
Maternal, Infant and Early Childhood Home Visiting Grant Program 93.870 6,571,579 6,367,118 Early Childhood Education
National Bioterrorism Hospital Preparedness Program 93.889 1,795,322 1,076,625 Public Health
Grants to States for Operation of State Offices of Rural Health 93.913 110,792 - Public Health
HIV Care Formula Grants 93.917 15,045,295 15,045,295 Public Health
HIV Prevention Activities - Health Department Based 93.940 6,360,154 4,538,024 Public Health
Human Immunodeficiency Virus (HIV)/Acquired Immunodeficiency Virus
Syndrome (AIDS) Surveillance 93.944 553,203 - Public Health
Cooperative Agreements to Support State-Based Safe Motherhood
and Infant Health Initiative Programs 93.946 137,744 24,336 Public Health
Block Grants for Community Mental Health Services 93.958 11,534,757 10,409,261 Mental Health
Block Grants for Prevention and Treatment of Substance Abuse 93.959 31,198,985 29,529,166 Mental Health
Sexually Transmitted Diseases (STD) Prevention and Control Grants 93.977 1,678,134 90,000 Public Health
Preventive Health and Health Services Block Grant 93.991 2,079,310 285,089 Public Health
Maternal and Child Health Services Block Grant to the States 93.994 10,964,441 612,955 Public Health
Other Federal Assistance
CLIA 93.Unknown 340,276 - Public Health
Mammography Quality Standards-HHS Contract 223-95-4400 93.Unknown (34,723) - Public Health
Tennessee Valley Authority - Contract TV-62313A 93.Unknown 4,283 (4,499) Public Health
Food Inspections-Contract 223-96-4036 93.Unknown 87,845 - Public Health
COVID-19 FEMA Donation (Hand Sanitizer) 93.Unknown 10,800 -
Total Department of Health and Human Services 6,407,492,054 242,609,600
CORPORATION FOR NATIONAL AND COMMUNITY SERVICE
State Commissions 94.003 297,184 - Governor's Office of Volunteer Services
AmeriCorps 94.006 1,389,323 1,389,323 Governor's Office of Volunteer Services
Commission Investment Fund 94.008 220,564 1,600 Governor's Office of Volunteer Services
Total Corporation for National and Community Service 1,907,071 1,390,923
Single Audit of Federal
Award Programs
State of Alabama 13 Exhibit #1
Schedule of Expenditures of Federal Awards
For the Year Ended September 30, 2020
Federal Grantor/ Federal
Pass-Through Agency/ CFDA Pass-Through to
Program Title Number Expenditures Note Subrecipients Agency
EXECUTIVE OFFICE OF THE PRESIDENT
High Intensity Drug Trafficking Areas Program 95.001 1,092,981 920,859 Alabama Law Enforcement Agency
Total Executive Office of the President 1,092,981 920,859
SOCIAL SECURITY ADMINISTRATION
Social Security - Disability Insurance 96.001 53,096,122 - Education
Social Security - Work Incentives Planning and Assistance Program 96.008 286,140 - Rehabilitation Services
Total Social Security Administration 53,382,262 -
DEPARTMENT OF HOMELAND SECURITY
Boating Safety Financial Assistance 97.012 2,895,855 - Alabama Law Enforcement Agency
Community Assistance Program - State Support Services
Element (CAP-SSSE) 97.023 305,940 - Economic and Community Affairs
Emergency Food and Shelter National Board Program 97.024 38,370 - Human Resources
Flood Mitigation Assistance 97.029 69,270 60,743 Emergency Management Agency
Disaster Grants - Public Assistance (Presidentially Declared Disasters) 97.036 24,654,688 23,225,707 Emergency Management Agency
Hazard Mitigation Grant 97.039 6,242,091 5,850,408 Emergency Management Agency
Emergency Management Performance Grants 97.042 5,731,346 2,866,174 Emergency Management Agency
Cooperating Technical Partners 97.045 5,356,530 - Economic and Community Affairs
Pre-Disaster Mitigation (PDM) 97.047 276,127 258,799 Emergency Management Agency
Presidential Declared Disaster Assistance to Individuals and Households 97.050 272,863,418 Labor
Port Security Grant Program 97.056 989,054 - Alabama Law Enforcement Agency
Homeland Security Grant Program 97.067 5,430,667 3,688,426 Alabama Law Enforcement Agency/Emergency Management
Other Federal Assistance
USDHS/US Immigration and Customs Enforcement (ICE) 97.Unknown 36,913 - Alabama Law Enforcement Agency
Total Department of Homeland Security 324,890,269 35,950,257
TOTAL FEDERAL AWARDS $ 14,994,758,708 $ 1,568,194,728
Single Audit of Federal
Award Programs
State of Alabama 14 Exhibit #1
Notes to the Schedule of Expenditures
of Federal Awards
For the Year Ended September 30, 2020
Note 1 – Purpose of the Schedule
Title 2 U. S. Code of Federal Regulations Part 200, Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), requires a
Schedule of Expenditures of Federal Awards showing total expenditures for each federal award
program identified in the Catalog of Federal Domestic Assistance (CFDA). Because the
Schedule presents only a selected portion of the operations of the State of Alabama, it is not
intended to and does not present the financial position, changes in net position or cash flows of
the State of Alabama.
Note 2 – Significant Accounting Policies
A. Reporting Entity – The accompanying schedule includes federal award programs
administered by the State of Alabama for the fiscal year ended September 30, 2020. State
agencies that receive separate audits in accordance with the Uniform Guidance and federal
awards received by state colleges and universities are not included in the schedule.
B. Basis of Presentation – The information in the accompanying Schedule of Expenditures of
Federal Awards is presented in accordance with the requirements of Title 2 of the U. S. Code
of Federal Regulations Part 200 (Uniform Guidance).
1. Federal Financial Assistance – Pursuant to the Single Audit Act Amendments of 1996
and the Uniform Guidance, federal financial assistance is defined as assistance that
non-federal entities receive or administer in the form of grants, loans, loan guarantees,
property (including donated surplus property), cooperative agreements, interest
subsidies, insurance, food commodities, direct appropriations, and other assistance.
C. Basis of Accounting – The information presented in the Schedule of Expenditures of Federal
Awards is presented on the cash basis of accounting, which is consistent with the other
federal grant reports. Under this basis, expenditures are recorded when paid, and revenues
are recognized when received. Such expenditures are recognized following, as applicable,
either the cost principles in Office of Management and Budget Circular A-87, Cost
Principles for State, Local and Indian Tribal Governments, or the cost principles contained
in Title 2 U. S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform
Guidance), wherein certain types of expenditures are not allowable or are limited as to
reimbursement. Therefore, some amounts presented in this schedule may differ from
amounts presented in or used in the preparation of the basic financial statements.
Single Audit of Federal 15
Award Programs
State of Alabama
Notes to the Schedule of Expenditures
of Federal Awards
For the Year Ended September 30, 2020
D. Expenditures and Expenses – When monies are received by one state agency and transferred
to another state agency either for final expenditure or as a reimbursement for services, the
federal financial assistance is reflected in the primary receiving/expending state agency's
accounts. This is to avoid duplication and the overstatement of the aggregate level of federal
financial assistance expended by the State of Alabama.
E. De Minimis Indirect Cost Rate – The State of Alabama elected to use the 10-percent de
minimis indirect cost rate as allowed in the Uniform Guidance for the following federal
programs:
· CFDA #11.549 – State and Local Implementation Grant Program
Note 3 – Other
A. Commodities included in the National School Lunch Program (CFDA #10.555), Summer
Food Service Program for Children (CFDA #10.559), Commodity Supplemental Food
Program (CFDA #10.565), and the Emergency Food Assistance Program (CFDA #10.569)
are included in the definition of federal financial assistance for the purpose of the
accompanying schedule. Commodities, totaling $60,344,649 were reported in accordance
with GASB Statement Number 24 in the basic financial statements of the State of Alabama
for the fiscal year ended September 30, 2020.
B. During the fiscal year ended September 30, 2020, the Alabama Department of Public Health
received $32,167,864 in cash rebates from infant formula manufacturers on sales of formula
to participants in the Special Supplemental Nutrition Program for Women, Infants and
Children (WIC) Program (CFDA #10.557). Rebate contracts with infant formula
manufacturers are authorized by 7 CFR 246.16(m) as a cost containment measure. Rebates
represent a reduction of expenditures previously incurred for WIC food benefits costs. The
rebate contracts allowed the Department to serve 43,609 more persons during the 2019-2020
fiscal year. This number is based on an average gross food package cost of $61.47.
C. Total expenditures for the Unemployment Insurance Program (CFDA #17.225) include state
and federal amounts of $793,293,432 and $2,678,617,446 respectively. The state portion of
expenditures includes regular unemployment compensation. The federal portion includes
administrative costs and unemployment compensation for ex-service members, former
federal employees, and extended benefits for eligible individuals who have exhausted their
regular unemployment compensation.
Single Audit of Federal 16
Award Programs
State of Alabama
Notes to the Schedule of Expenditures
of Federal Awards
For the Year Ended September 30, 2020
D. Donation of Federal Surplus Personal Property (CFDA #39.003) is valued at 23.34% of the
acquisition costs in accordance with a directive from the U. S. General Services
Administration.
E. Expenditures reported on the schedule include $238,002 of Social Security Administration
reimbursements under the Rehabilitation Services - Vocational Rehabilitation Grants to
States Program (CFDA #84.126).
F. The amount reported as expenditures for the Immunization Cooperative Agreements
(CFDA #93.268) includes the value of immunization vaccines received and distributed in the
amount of $60,901,458 during the 2019-2020 fiscal year.
Note 4 – Medicaid Cluster
On August 27, 2013, the Alabama Medicaid Agency received a notice from the
Office of Inspector General (OIG) recommending a refund of $88,197,498 to the Federal
Government. According to the OIG audit report, this refund was required due to Alabama
receiving unallowable performance bonus payments under the Children’s Health Insurance
Program (CHIP) Reauthorization Act. The audit also concluded that Alabama Medicaid
overstated current enrollment in its request for bonus payments in fiscal years 2009 and 2010.
On April 30, 2019, the Centers for Medicare and Medicaid Services (CMS) issued a demand
letter to the Alabama Medicaid Agency for $88,197,498 (reduced to $41,630,638 when
offset by the bonus payment amounts restricted in the PMS subaccounts for fiscal year 2011,
fiscal year 2012, and fiscal year 2013). Alabama filed an appeal of CMS’ decision with
the U. S. Department of Health and Human Services Departmental Appeals Board on
May 29, 2019. CMS notified Medicaid that a decision had been made to recover funds paid to
Medicaid in performance bonus payments as a result of Office of the Inspector General (OIG)
audit A-04-12-08014. Medicaid and CMS entered into a settlement agreement. Payments have
been made quarterly beginning March 30, 2021.
Note 5 (Unaudited) – Donated Personal Protective Equipment (PPE)
During the fiscal year ended September 30, 2020, the Alabama Emergency Management Agency
received PPE with a fair value of $33,488,380 from the Federal Government.
Single Audit of Federal 17
Award Programs
State of Alabama
Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of
Financial Statements Performed in Accordance With
Government Auditing Standards
Independent Auditor’s Report
Honorable Kay Ivey, Governor
State of Alabama
Montgomery, Alabama
We have audited, in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States, the financial statements of the
governmental activities, the business-type activities, the aggregate discretely presented
component units, each major fund, and the aggregate remaining fund information of the State of
Alabama, as of and for the year ended September 30, 2020, and the related notes to the financial
statements, which collectively comprise the State of Alabama’s basic financial statements and
have issued our report thereon dated March 31, 2021. Our report includes a reference to other
auditors. Below is a list which indicates the financial statements of the agencies and funds
audited by other auditors and whether the audits were performed in accordance with
Government Auditing Standards. This report does not include the results of the other auditors’
testing of internal control over financial reporting or compliance and other matters that are
reported on separately by those auditors.
Audit Performed Audit Not Performed
in Accordance with in Accordance with
Agencies/Funds Government Auditing Government Auditing
Audited by Other Auditors Standards Standards
Alabama Public Health Care Authority X
Alabama State Port Authority X
State Employees’ Insurance Board X
Public Education Employees’ Health Insurance Fund X
Alabama Housing Finance Authority X
Alabama Water Pollution Control Authority X
Space Science Exhibit Commission X
Alabama Drinking Water Finance Authority X
University of Alabama X
Auburn University X
Athens State University X
Jacksonville State University X
University of South Alabama X
University of North Alabama X
University of Montevallo X
Alabama Fire College & Personnel Standards Commission X
Retirement Systems of Alabama X
Employees’ Savings Plans (PEIRAF and RSA-1) X
Retired Education Employees’ Health Care Trust X
Retired State Employees’ Health Care Trust X
Prepaid Affordable College Tuition Program X
Alabama College Education Savings Plan X
Single Audit of Federal 18 Exhibit #2
Award Programs
State of Alabama
Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of
Financial Statements Performed in Accordance With
Government Auditing Standards
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the State of
Alabama’s internal control over financial reporting (internal control) to determine the audit
procedures that are appropriate in the circumstances for the purpose of expressing our opinions
on the financial statements, but not for the purpose of expressing an opinion on the effectiveness
of the State of Alabama’s internal control. Accordingly, we do not express an opinion on the
effectiveness of the State of Alabama’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct, misstatements on a timely basis. A material weakness is a
deficiency, or a combination of deficiencies, in internal control such that there is a reasonable
possibility that a material misstatement of the entity’s financial statements will not be prevented,
or detected and corrected, on a timely basis. We consider the deficiencies described in the
accompanying Schedule of Findings and Questioned Costs, as items 2020-001 and 2020-002 to
be material weaknesses.
Our consideration of internal control was for the limited purpose described in the preceding
paragraph and was not designed to identify all deficiencies in internal control that
might be material weaknesses or significant deficiencies and therefore, material weaknesses or
significant deficiencies may exist that have not been identified. However, as described in the
accompanying Schedule of Findings and Questioned Costs, we did identify certain deficiencies
in internal controls described in the accompanying Schedule of Findings and Questioned Costs,
as Finding 2020-001 and Finding 2020-002, that we consider to be material weaknesses.
The findings related to information technology are being presented in summary form for security
reasons. Details of the findings have been communicated to the affected state agencies.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the State of Alabama’s financial
statements are free from material misstatement, we performed tests of its compliance with certain
provisions of laws, regulations, contracts and grant agreements, noncompliance with which could
have a direct and material effect on the determination of financial statement amounts. However,
providing an opinion on compliance with those provisions was not an objective of our audit, and
accordingly, we do not express such an opinion. The results of our tests disclosed no instances
of noncompliance or other matters that are required to be reported under Government Auditing
Standards.
Single Audit of Federal 19 Exhibit #2
Award Programs
State of Alabama
Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of
Financial Statements Per/ormed in Accordance With
Government Auditing Standards
The State of Alabama's Response to Findings
The State of Alabama's responses to the findings identified in our audit are described in the
accompanying Auditee Responses/Corrective Action Plans. The State of Alabama's responses
were not subjected to auditing procedures applied in the audit of the financial statements, and
accordingly , we express no opinion on them.
Purpose o(this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of
the entity ' s internal control or on compliance. This report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the entity's
internal control and compliance. Accordingly, this communication is not suitable for any other
purpose.
Rachel Laurie Riddle
Chief Examiner
Department of Examiners of Public Accounts
Montgomery , Alabama
March 31, 2021
Single Audit of Federal 20 Exhibit #2
A ward Programs
State of Alabama
Report on Compliance for Each Major Federal Program;
Report on Internal Control Over Compliance; and Report on
the Schedule of Expenditures of Federal Awards
Required by the Uniform Guidance
Independent Auditor's Report
Honorable Kay Ivey, Governor
State of Alabama
Montgomery, Alabama
Report on Compliance for Each Major Federal Program
We have audited the State of Alabama’s compliance with the types of compliance requirements
described in the OMB Compliance Supplement that could have a direct and material effect on
each of the State of Alabama’s major federal programs for the year ended September 30, 2020.
The State of Alabama’s major federal programs are identified in the Summary of Examiner’s
Results Section of the accompanying Schedule of Findings and Questioned Costs.
The State of Alabama’s basic financial statements include the operations of the Housing Finance
Authority, the Water Pollution Control Authority and the Drinking Water Finance Authority.
The federal awards expended by these component units are not included in the Schedule of
Expenditures of Federal Awards for the year ended September 30, 2020. Our audit, described
below, did not include the operations of these component units because other auditors were
engaged to perform audits in accordance with the Uniform Guidance. The federal programs
administered by these component units and the federal funds expended are as follows:
CFDA Federal
Component Unit Federal Program Number Expenditures
Housing Finance Authority Home Investment Partnerships Program 14.239 $ 9,560,858
Housing Finance Authority Housing Trust Fund 14.275 $ 63,354
Water Pollution Control Authority Capitalization Grants for Clean Water 66.458 $17,366,454
State Revolving Funds
Drinking Water Finance Authority Capitalization Grants for Drinking Water 66.468 $25,416,084
State Revolving Funds
We have also excluded federal award programs administered by state-supported colleges and
universities, which are a part of the financial reporting entity of the State of Alabama and
included in the Basic Financial Statements. The Single Audits of the state-supported colleges
and universities are performed and issued separately for each institution.
Single Audit of Federal 21 Exhibit #3
Award Programs
State of Alabama
Report on Compliance for Each Major Federal Program;
Report on Internal Control Over Compliance; and Report on
the Schedule of Expenditures of Federal Awards
Required by the Uniform Guidance
Management’s Responsibility
Management is responsible for compliance with federal statutes, regulations, and the terms and
conditions of its federal awards applicable to its federal programs.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for each of the State of Alabama’s
major federal programs based on our audit of the types of compliance requirements referred to
above. We conducted our audit of compliance in accordance with auditing standards generally
accepted in the United States of America; the standards applicable to financial audits contained
in Government Auditing Standards, issued by the Comptroller General of the United States; and
the audit requirements of Title 2 U. S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
(Uniform Guidance). Those standards and the Uniform Guidance require that we plan and
perform the audit to obtain reasonable assurance about whether noncompliance with the types of
compliance requirements referred to above that could have a direct and material effect on a
major federal program occurred. An audit includes examining, on a test basis, evidence about
the State of Alabama’s compliance with those requirements and performing such other
procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each
major federal program. However, our audit does not provide a legal determination of the State of
Alabama’s compliance.
Opinion on Each Major Federal Program
In our opinion, the State of Alabama complied, in all material respects, with the types of
compliance requirements referred to above that could have a direct and material effect on each of
its major federal programs identified in the summary of examiner’s results section of the
Schedule of Findings and Questioned Costs for the year ended September 30, 2020.
Single Audit of Federal 22 Exhibit #3
Award Programs
State of Alabama
Report on Compliance for Each Major Federal Program;
Report on Internal Control Over Compliance; and Report on
the Schedule of Expenditures of Federal Awards
Required by the Uniform Guidance
Other Matters
The results of our auditing procedures disclosed instances of noncompliance, which are
required to be reported in accordance with the Uniform Guidance and which are described
in the accompanying Schedule of Findings and Questioned Costs as items 2020-003, 2020-004,
2020-005, 2020-006, 2020-007, and 2020-008. Our opinion on each major federal program is
not modified with respect to these matters.
The State of Alabama’s responses to the noncompliance findings identified in our audit are
described in the accompanying Auditee Responses/Corrective Action Plans. The State of
Alabama’s responses were not subjected to the auditing procedures applied in the audit of
compliance and, accordingly, we express no opinion on the responses.
Report on Internal Control Over Compliance
Management of the State of Alabama is responsible for establishing and maintaining effective
internal control over compliance with the types of compliance requirements referred to above. In
planning and performing our audit of compliance, we considered the State of Alabama’s internal
control over compliance with the types of requirements that could have a direct and material
effect on a major federal program to determine the auditing procedures that are appropriate in the
circumstances for the purpose of expressing an opinion on compliance for each major federal
program and to test and report on internal control over compliance in accordance with the
Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of
internal control over compliance. Accordingly, we do not express an opinion on the
effectiveness of the State of Alabama’s internal control over compliance.
Our consideration of internal control over compliance was for the limited purpose described in
the preceding paragraph and was not designed to identify all deficiencies in internal control over
compliance that might be material weaknesses or significant deficiencies and therefore, material
weaknesses or significant deficiencies may exist that have not been identified. However, as
discussed below, we identified certain deficiencies in internal control over compliance that we
consider to be material weaknesses and significant deficiencies
Single Audit of Federal 23 Exhibit #3
Award Programs
State of Alabama
Report on Compliance for Each Major Federal Program;
Report on Internal Control Over Compliance; and Report on
the Schedule of Expenditures of Federal Awards
Required by the Uniform Guidance
A deficiency in internal control over compliance exists when the design or operation of a control
over compliance does not allow management or employees, in the normal course of performing
their assigned functions, to prevent, or detect and correct, noncompliance with a type of
compliance requirement of a federal program on a timely basis. A material weakness in internal
control over compliance is a deficiency, or combination of deficiencies, in internal control over
compliance, such that there is a reasonable possibility that material noncompliance with a type of
compliance requirement of a federal program will not be prevented, or detected and corrected, on
a timely basis. We consider the deficiencies in internal control over compliance described in the
accompanying Schedule of Findings and Questioned Costs as item 2020-006 to be a material
weakness.
A significant deficiency in internal control over compliance is a deficiency, or a combination
of deficiencies, in internal control over compliance with a type of compliance requirement
of a federal program that is less severe than a material weakness in internal control over
compliance, yet important enough to merit attention by those charged with governance. We
consider the deficiencies in internal control over compliance described in the accompanying
Schedule of Findings and Questioned Costs as items 2020-003, 2020-004, 2020-005, 2020-007,
and 2020-008 to be significant deficiencies.
The State of Alabama’s responses to the internal control over compliance findings identified in
our audit are described in the accompanying Auditee Responses/Corrective Action Plans. The
State of Alabama’s responses were not subjected to the auditing procedures applied in the audit
of compliance and, accordingly, we express no opinion on the responses.
The purpose of this report on internal control over compliance is solely to describe the scope of
our testing of internal control over compliance and the results of that testing based on the
requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other
purpose.
Single Audit of Federal 24 Exhibit #3
Award Programs
State of Alabama
Report on Compliance for Each Major Federal Program;
Report on Internal Control Over Compliance; and Report on
the Schedule of Expenditures of Federal Awards
Required by the Uniform Guidance
Report on the Schedule of Expenditures of Federal Awards Required by the Uniform
Guidance
We have audited the financial statements of the governmental activities, the business-type
activities, the aggregate discretely presented component units, each major fund, and the
aggregate remaining fund information of the State of Alabama as of and for the year ended
September 30, 2020, and the related notes to the financial statements, which collectively
comprise the State of Alabama's basic financial statements. We issued our report thereon dated
March 31, 2021, which contained unmodified opinions on those financial statements. Our audit
was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the State of Alabama's basic financial statements. The accompanying Schedule of
Expenditures of Federal Awards is presented for purposes of additional analysis as required by
the Uniform Guidance and is not a required part of the basic financial statements. Such
information is the responsibility of management and was derived from and relates directly to the
underlying accounting and other records used to prepare the basic financial statements. The
information has been subjected to the auditing procedures applied in the audit of the financial
statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic
financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the Schedule of Expenditures of Federal Awards is fairly stated in all
material respects in relation to the basic financial statements as a whole.
(µ~~ Rachel Laurie Riddle
Chief Examiner
Department of Examiners of Public Accounts
Montgomery, Alabama
November 5, 2021, except for our report
on the Schedule of Expenditures of Federal
A wards, for which the date is March 31, 2021
Single Audit of Federal 25 Exhibit #3
A ward Programs
State of Alabama
Schedule of Findings and Questioned Costs
For the Year Ended September 30, 2020
Section I – Summary of Examiner's Results
Financial Statements
Type of report the auditor issued on whether the
audited financial statements were prepared in
accordance with GAAP: Unmodified
Internal control over financial reporting:
Material weakness(es) identified? X Yes No
Significant deficiencies identified that are
not considered to be material weakness(es)? Yes X None reported
Noncompliance material to financial
statements noted? Yes X No
Federal Awards
Internal control over major federal programs:
Material weakness(es) identified? X Yes No
Significant deficiencies identified that are not
considered to be material weakness(es)? X Yes None reported
Type of opinion issued on compliance for
major federal programs: Unmodified
Any audit findings disclosed that are
required to be reported in accordance with
2 CFR 200.516(a) of the Uniform Guidance? X Yes No
Identification of major federal programs:
CFDA Number(s) Name of Federal Program or Cluster
10.557 Special Supplemental Nutrition Program for
Women, Infants and Children
10.558 Child and Adult Care Food Program
10.568 and 10.569 Food Distribution Cluster
17.225 Unemployment Insurance
20.205, 20.219 and 23.003 Highway Planning and Construction Cluster
21.015 Resources and Ecosystems Sustainability,
Tourist Opportunities and Revived
Economies of the Gulf Coast States
21.019 Coronavirus Relief Fund Under CARES Act
84.027 and 84.173 Special Education Cluster (IDEA)
Single Audit of Federal 26 Exhibit #4
Award Programs
State of Alabama
Schedule of Findings and Questioned Costs
For the Year Ended September 30, 2020
Section I – Summary of Examiner's Results
Identification of major programs continued:
CFDA Number(s) Name of Federal Program or Cluster
84.048 Career and Technical Education – Basic
Grants to States
84.367 Supporting Effective Instruction State Grant
93.268 Immunization Cooperative Agreements
Temporary Assistance for Needy
93.558 Families (TANF)
93.575 and 93.596 Child Care Development Cluster
93.600 Head Start
93.775, 93.777 and 93.778 Medicaid Cluster
93.917 HIV Care Formula Grants
Block Grants for Prevention and Treatment
93.959 of Substance Abuse
Presidentially Declared Disaster Assistance
97.050 to Individuals and Households
Dollar threshold used to distinguish Between
Type A and Type B programs: $30,000,000
Auditee qualified as low-risk auditee? Yes X No
Single Audit of Federal 27 Exhibit #4
Award Programs
State of Alabama
Schedule of Findings and Questioned Costs
Department of Labor
For the Year Ended September 30, 2020
Section II – Financial Statement Findings (GAGAS)
Reference Number: 2020-001
Type of Finding: Internal Control
Internal Control Impact: Material Weakness
Compliance Impact: None
Repeat of Prior Year Finding: 2019-001, 2018-001 and 2011-01 (origination year)
The Alabama Department of Labor does not have an updated disaster recovery plan.
Additionally, in the event that certain state agencies’ information technology resources were
adversely affected by man-made or natural disasters, the Department of Labor’s disaster
recovery procedures do not have an alternative processing facility in the event the primary site
becomes unavailable.
Finding
We reviewed the internal control policies and procedures affecting the ability of certain state
agencies to be able to continue operations in the event the information technology resources of
those agencies were adversely affected by man-made or natural disasters. Critical information
technology resources and the related government functions served by those resources are at risk
because of weaknesses in the control policies and procedures affecting contingency planning.
The Alabama Department of Labor had a disaster recovery plan; however, the plan has not been
updated to adequately reflect significant changes in hardware, software, and personnel. The
Department of Labor also does not have an alternate site that could be used as an alternate
processing facility if the primary site becomes unavailable. These conditions increase the risk
that the Department of Labor could incur major disruptions in service if there is a catastrophic
event at or near its primary data processing center.
Recommendation
The Alabama Department of Labor should update all components of its disaster recovery plan.
Periodic reviews and updates of the disaster recovery plan should be performed. The
Department of Labor should make arrangements for a remote alternate processing facility in a
location that is not likely to be affected by a disaster at the primary site.
Views of Responsible Officials
The Alabama Department of Labor agrees with the finding.
Single Audit of Federal 28 Exhibit #4
Award Programs
State of Alabama
Schedule of Findings and Questioned Costs
Department of Finance
For the Year Ended September 30, 2020
Section II – Financial Statement Findings (GAGAS)
Reference Number: 2020-002
Type of Finding: Internal Control
Internal Control Impact: Material Weakness
Compliance Impact: None
Repeat of Prior Year Finding: 2019-002, 2018-002 and 2014-01 (origination year)
A comprehensive disaster recovery plan which includes all functional units of the Department of
Finance including SBS/STAARS (State Business Systems/State of Alabama Accounting and
Resource System) has not been completed.
Finding
We reviewed the internal control policies and procedures affecting the ability of the Department
of Finance Information Services Division to be able to continue operations in the event the
information technology resources of the Department of Finance were adversely affected by
man-made or natural disasters. Critical information technology resources and the related
government functions served by those resources are at risk because of weaknesses in the control
policies and procedures affecting contingency planning. A comprehensive disaster recovery plan
which includes all functional units of the Department of Finance including SBS/STAARS (State
Business Systems/State of Alabama Accounting and Resource System) has not been completed.
These conditions increase the risk that the Department of Finance could incur major disruptions
in service if there is a catastrophic event at or near its primary data processing center.
Recommendation
The Department of Finance Information Services Division should update the master disaster
recovery plans for all functional units of the Department.
Views of Responsible Officials
The Department of Finance State Business Systems Division agrees with the finding.
Single Audit of Federal 29 Exhibit #4
Award Programs
State of Alabama
Schedule of Findings and Questioned Costs
Department of Public Health
For the Year Ended September 30, 2020
Section III – Federal Awards Findings and Questioned Costs
Reference Number: 2020-003
Compliance Requirement: Matching, Level of Effort, Earmarking
Type of Finding: Internal Control and Compliance
Internal Control Impact: Significant Deficiency
Compliance Impact: Nonmaterial Noncompliance
CFDA Number(s) and Title(s): CFDA 93.917 – HIV Care Formula Grants
Federal Awarding Agency: Department of Health and Human Services Health
Resources and Services Administration (HRSA)
Federal Award Number: 6 X07HA00049-29-01
Pass-through Entity: None
Pass-through Award Number: None
Questioned Costs: None
The Department of Public Health did not have procedures in place to maintain and provide
supporting documentation for the subrecipient administrative costs for fiscal year 2020.
Finding
The Uniform Guidance, 2 CFR 200.303, requires non-Federal entities receiving Federal awards
to establish and maintain effective internal control over the Federal award that provides
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.
42 USC 300ff-28(b)(3)(B), requires States to allocate amounts received under Section 300ff–21
of this title, and ensure that, of the aggregate amount allocated, the total of the expenditures by
the entities for administrative expenses does not exceed 10 percent.
The Uniform Guidance, 2 CFR 200.336, requires non-Federal entities to give access to any
documents, papers, or other records of the non-federal entity, which are pertinent to the Federal
award, to authorized representatives in order to make audits.
When testing compliance with the HIV earmarking requirements, we were not provided with the
supporting documentation to determine compliance with the subrecipient administrative
expenditure limit. This represented one of the eight earmarking requirement components of the
HIV program. The Department of Public Health did not have procedures in place to ensure
subrecipient administrative expenditure records are provided for audit review upon request.
Single Audit of Federal 30 Exhibit #4
Award Programs
State of Alabama
Schedule of Findings and Questioned Costs
Department of Public Health
For the Year Ended September 30, 2020
The State Department of Public Health did not provide subrecipient administrative expenditure
records as requested. Therefore, it was undeterminable as to whether the Department of Public
Health ensured the HIV earmarking requirement related to the subrecipient administrative
expenditure limit was met. This could result in subrecipient administrative expenses exceeding
the 10 percent limit.
Recommendation
The Department of Public Health should establish and maintain effective internal controls over
subrecipient monitoring to help provide assurance subrecipient administrative expenditure
records are maintained.
Views of Responsible Officials of the Auditee
The Department of Public Health agrees they were unable to produce the reports that were
maintained throughout the grant period showing the subrecipient administrative costs were
monitored.
Single Audit of Federal 31 Exhibit #4
Award Programs
State of Alabama
Schedule of Findings and Questioned Costs
Department of Labor
For the Year Ended September 30, 2020
Section III – Federal Awards Findings and Questioned Costs
Reference Number: 2020-004
Compliance Requirement: Reporting
Type of Finding: Internal Control and Compliance
Internal Control Impact: Significant Deficiency
Compliance Impact: Nonmaterial Noncompliance
CFDA Number(s) and Title(s): CFDA 17.225 – Unemployment Insurance
Federal Awarding Agency: Department of Labor
Federal Award Number: UI-34043-20-55-A-1
Pass-through Entity: None
Pass-through Award Number: None
Questioned Costs: None
The Alabama Department of Labor did not have procedures in place to ensure the
ETA 191 Financial Status report was accurate.
Finding
The Uniform Guidance, 2 CFR 200.303, requires non-Federal entities receiving Federal awards
to establish and maintain effective internal control over the Federal award that provides
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.
The Uniform Guidance, 2 CFR Part 200, Appendix XI Compliance Supplement, August 2020,
requires the Alabama Department of Labor to submit an ETA (Employment and Training
Administration) 191 Financial Status report on a quarterly basis which shows the Unemployment
Compensation for Federal Employees (UCFE) and Unemployment Compensation for Ex-Service
Members (UCX) expenditures and the total amount of benefits paid to claimants of specific
federal agencies.
Single Audit of Federal 32 Exhibit #4
Award Programs
State of Alabama
Schedule of Findings and Questioned Costs
Department of Labor
For the Year Ended September 30, 2020
While reviewing the ETA 191 reports for compliance with the Unemployment Insurance
reporting requirements, 17 discrepancies were noted between the ETA 191 Financial Status
report and the Alabama Department of Labor’s financial records for the report period ending
September 30, 2020. The Alabama Department of Labor did not have procedures in place to
ensure the financial information provided in the ETA 191 Financial Status report was accurate.
The Alabama Department of Labor did not report an accurate total amount of benefits paid to
claimants of specific federal agencies on the ETA 191 Financial Status Report. The ETA 191
report is used to bill Federal and military agencies for the recovery of UCFE and UCX benefit
payments. This caused incorrect amounts to be reported for benefit payment recovery. This is a
significant deficiency in internal control and nonmaterial noncompliance.
Recommendation
The Alabama Department of Labor should establish and maintain effective internal controls over
reporting to help provide assurance reports are accurate before they are submitted.
Views of Responsible Officials of the Auditee
The ETA 191 had noted discrepancies for the quarter ending June 30, 2020. When the error was
identified, ADOL notified USDOL Regional office in Atlanta, Georgia of the incorrect
information reported on the ETA 191 for the quarter ending June 30, 2020. USDOL confirmed,
via email, it was not necessary to provide a corrected report for the quarter ending June 30, 2020.
USDOL stated the correct information should be submitted on the next ETA 191 report for the
quarter ending September 30, 2020. It has been verified that the correct information was
submitted on the ETA 191 for the quarter ending September 30, 2020.
Single Audit of Federal 33 Exhibit #4
Award Programs
State of Alabama
Schedule of Findings and Questioned Costs
Department of Labor
For the Year Ended September 30, 2020
Section III – Federal Awards Findings and Questioned Costs
Reference Number: 2020-005
Compliance Requirement: Reporting
Type of Finding: Internal Control and Compliance
Internal Control Impact: Significant Deficiency
Compliance Impact: Nonmaterial Noncompliance
CFDA Number(s) and Title(s): CFDA 17.225 – Unemployment Insurance
Federal Awarding Agency: Department of Labor
Federal Award Number: UI-34043-20-55-A-1
Pass-through Entity: None
Pass-through Award Number: None
Questioned Costs: None
The Alabama Department of Labor did not have procedures in place to ensure the
Participant Individual Record Layout Report was accurate.
Finding
The Uniform Guidance, 2 CFR 200.303, requires non-Federal entities receiving Federal awards
to establish and maintain effective internal control over the Federal award that provides
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.
The Uniform Guidance, 2 CFR Part 200, Appendix XI Compliance Supplement, August 2020,
requires the Alabama Department of Labor to submit a Participant Individual Record Layout
report (replaced the Trade Act Participant Report) on participants characteristics, services and
benefits received, and outcomes achieved on a rolling four-quarter basis.
While reviewing the 2nd and 3rd quarter for compliance with the Unemployment Insurance
reporting requirements for the Participant Individual Record Layout report, 45 discrepancies
were noted between the Participant Individual Record Layout report and the Alabama
Department of Labor’s records.
Single Audit of Federal 34 Exhibit #4
Award Programs
State of Alabama
Schedule of Findings and Questioned Costs
Department of Labor
For the Year Ended September 30, 2020
The Alabama Department of Labor did not have procedures in place to ensure the financial and
statistical information provided in Participant Individual Record Layout report was accurate.
The Alabama Department of Labor did not report accurate financial and statistical information
on the Participant Individual Record Layout report. This caused incorrect employment, job
retention, and wage information to be reported.
Recommendation
The Alabama Department of Labor should establish and maintain effective internal controls over
reporting to help provide assurance reports are accurate before they are submitted.
Views of Responsible Officials of the Auditee
The Participant Individual Record Layout (PIRL) (OMB Number 1205-0521) had noted
discrepancies for quarter ending June 30, 2020. When the error was identified, ADOL notified
USDOL Regional office in Atlanta, Georgia of the incorrect information reported on the
ETA 191 for the quarter ending June 30, 2020. USDOL confirmed, via email, it was not
necessary to provide a corrected report for the quarter ending June 30, 2020. USDOL stated the
correct information should be submitted on the next PIRL report for the quarter ending
September 30, 2020. It has been verified that the correct information was submitted on the PIRL
for the quarter ending September 30, 2020. In April 2020 there was a system conversion from
AJL to Alabama Works! and ADOL believes this was the cause of the incorrect information.
The reports from the new system have been corrected.
Single Audit of Federal 35 Exhibit #4
Award Programs
State of Alabama
Schedule of Findings and Questioned Costs
Department of Labor
For the Year Ended September 30, 2020
Section III – Federal Awards Findings and Questioned Costs
Reference Number: 2020-006
Compliance Requirement: Eligibility
Type of Finding: Internal Control and Compliance
Internal Control Impact: Material Weakness
Compliance Impact: Nonmaterial Noncompliance
CFDA Number(s) and Title(s): CFDA 17.225 – Unemployment Insurance
CFDA 97.050 – Presidential Declared Disaster
Assistance to Individuals and Households
Federal Awarding Agency: U. S. Department of Labor
U. S Department of Homeland Security
Federal Award Number: UI-34043-20-55-A-1 and 4503DRALSPLW
Pass-through Entity: None
Pass-through Award Number: None
Questioned Costs: $116,400.00
The Alabama Department of Labor did not have controls in place to ensure payments were
not made to deceased claimants.
Finding
The Uniform Guidance, 2 CFR 200.303, requires non-Federal entities receiving Federal awards
(i.e., auditee management) to establish and maintain effective internal controls over the Federal
award that provide reasonable assurance that the non-Federal entity is managing the Federal
Award in compliance with Federal statutes, regulations, and terms and conditions of the Federal
award.
20 CFR 604.3(a) requires a State to only pay an individual who is able to work and available for
work for the week which Unemployment Compensation (UC) is claimed.
Single Audit of Federal 36 Exhibit #4
Award Programs
State of Alabama
Schedule of Findings and Questioned Costs
Department of Labor
For the Year Ended September 30, 2020
Based on data analytics, we identified 1,312 unduplicated claimants. 873 of the unduplicated
claimants were determined to be eligible claimants. The remaining 439 consisted
of 157 claimants meeting our criteria and 282 claimants that did not meet our criteria.
Of the 157 claimants, 75 did not receive any payments, 6 were identified by the Department of
Labor, 37 were paid correctly and the remaining 39 claimants received unemployment
compensation benefits after records show they were deceased based on our data analytics. This
resulted in improper payments totaling $87,540 for the Unemployment Insurance Program
CFDA #17.225 and $28,860 for the Federal Emergency Management Agency Lost Wages
Assistance CFDA #97.050 for a total of $116,400.00.
The Alabama Department of Labor did not have internal controls in place which were adequately
designed to identify deceased claimants in a timely manner, in order to help prevent and/or detect
improper payments.
The lack of a well-designed system of internal controls, to identify deceased claimants, will
cause the Alabama Department of Labor to continue to pay benefits to claimants who are
deceased.
Recommendation
The Alabama Department of Labor should establish and maintain effective internal controls to
help ensure payments are not made to deceased claimants.
Views of Responsible Officials of the Auditee
Fiscal Year 2020 was an extraordinary year for all Unemployment Compensation (UC)
programs. ADOL was taxed with servicing an element of the population never encompassed
within the UC program. In addition, ADOL was in the throes of UC Modernization as well as
budget constraints when the pandemic struck. The sheer volume of claims threw the system into
chaos. For the past year, ADOL has attempted to get the necessary programming done to allow
the agency to filter unemployment compensation claims through the Integrity Data Hub. The
data hub utilizes the "Do Not Pay software" and relays the information back to the states.
Unfortunately, programming priorities have repeatedly been steered towards the payment of UC
claims and federally mandated programs, as well as providing claimant access to requested data
portals.
Single Audit of Federal 37 Exhibit #4
Award Programs
State of Alabama
Schedule of Findings and Questioned Costs
Alabama Medicaid Agency
For the Year Ended September 30, 2020
Section III – Federal Awards Findings and Questioned Costs
Reference Number: 2020-007
Compliance Requirement: Special Test and Provisions
Type of Finding: Internal Control/Compliance
Internal Control Impact: Significant Deficiency
Compliance Impact: Nonmaterial Noncompliance
CFDA Number(s) and Title(s): 93.775-State Medicaid Fraud Control Units.
93.777-State Survey and Certification of Health Care
Providers and Suppliers (Title XVIII) Medicare.
93.778 Medical Assistance Program (Medicaid; Title XIX).
Federal Awarding Agency: U. S. Department of Health and Human Services
Federal Award Number: Grant Award Numbers FY2020: 2005AL5MAP and
2005AL5ADM
Pass-through Entity: None
Pass-through Award Number: None
Questioned Costs: None
The Medicaid Agency’s fiscal agent contract with the Medicaid National Correct Coding
Initiative does not include the required confidentiality elements as set out in the Medicaid
Technical Guidance Manual.
Finding
The Medicaid Agency has one contracted fiscal agent with which it shares data. During our
testing of the Medicaid National Correct Coding Initiative (NCCI), the Confidentiality
Agreement with the fiscal agent was reviewed and it was determined the Confidentiality
Agreement that Medicaid has in place under the fiscal agent contract does not meet the Medicaid
Technical Guidance Manuals minimum requirements. According to the Medicaid Technical
Guidance Manual 2020, Sections 7.1.1 and 7.1.2, the state Medicaid agency can only share the
quarterly state Medicaid NCCI edit files with the contracted fiscal agent that processes its fee-for
service claims that is using the Medicaid NCCI methodologies in its processing of claims or
encounter data, if appropriate confidentiality agreements are in place that meet the manuals
minimum requirements. It also stated that Contracted Parties is defined as a fiscal agent that has
a contract with the Medicaid agency for processing its claims which assist with implementation
of claims processing or encounter data, and who must use these edit files for processing
purposes.
Single Audit of Federal 38 Exhibit #4
Award Programs
State of Alabama
Schedule of Findings and Questioned Costs
Alabama Medicaid Agency
For the Year Ended September 30, 2020
Finding Continued
While Medicaid has a contract with the fiscal agent, the section that addresses confidentiality
does not include the elements that the manual requires. Rather, Medicaid staff interpreted the
manual as allowing disclosure to the Fiscal Agent under the Confidentiality Agreement of the
current contract and a different agreement was only required with other contractors involved in
NCCI. Not having the proper Confidentiality Agreements may result in leak of confidential
information and possible legal action. This is nonmaterial noncompliance and a significant
deficiency in internal controls.
Recommendation
We recommend Medicaid implement procedures to ensure that the Confidentiality Agreement
with the fiscal agent meets the minimum requirements of the Medicaid National Correct Coding
Initiative Technical Guidance Manual.
Views of Responsible Officials
The Alabama Medicaid Agency agrees that this a nonmaterial noncompliance finding and
disagrees that it is a significant deficiency in internal controls. Although the Alabama Medicaid
Agency maintains extremely rigorous confidentiality procedures and agreements with all of its
contractors so that information is protected at all times in accordance with the many federal
regulations applying to the Medicaid Agency and its data, a confidential agreement that
specifically reiterates the NCCI Medicaid Technical Guidance Manual's minimum requirements
has been developed and sent to the Fiscal Agent for signature. To ensure compliance with the
NCCI Medicaid Technical Guidance Manual, Medicaid and the Fiscal Agent will sign the
Confidentiality Agreement as soon as possible.
Examiners’ Concluding Remarks
We have considered the reasons for the Medicaid Agency’s disagreement noted above; however,
we reaffirm our finding.
Single Audit of Federal 39 Exhibit #4
Award Programs
State of Alabama
Schedule of Findings and Questioned Costs
Department of Finance
For the Year Ended September 30, 2020
Section III – Federal Awards Findings and Questioned Costs
Reference Number: 2020-008
Compliance Requirement: Subrecipient Monitoring
Type of Finding: Internal Control/Compliance
Internal Control Impact: Significant Deficiency
Compliance Impact: Nonmaterial Noncompliance
CFDA Number(s) and Title(s): 21.019 Coronavirus Relief Fund
Federal Awarding Agency: U. S. Department of Treasury
Federal Award Number: SLT0002 and SLT0223
Pass-through Entity: None
Pass-through Award Number: None
Questioned Costs: None
The Department of Finance did not notify subrecipients of the audit requirements and it
did not ensure audits were performed when subrecipients expended $750,000 or more.
Finding
2 CFR Section 200.331(f) states, “Verify that every subrecipient is audited as required by
Subpart F--Audit Requirements of this part when it is expected that the subrecipient's Federal
awards expended during the respective fiscal year equaled or exceeded the threshold set forth in
Section 200.501 Audit Requirements.” 2 CFR Section 200.501(a) states, “Audit Required. A
non-Federal entity that expends $750,000 or more during the non-Federal entity's fiscal year in
Federal awards must have a single or program-specific audit conducted for that year in
accordance with the provisions of this part.”
During our review of 60 of the 274 subrecipients, we noted the Department of Finance did not
require verifications from subrecipients that expended $750,000 or more that they received an
audit, nor were subrecipients notified that they were required to have an audit. According to the
Department of Finance, they were unaware of the applicability of Subpart F to the Coronavirus
Relief Fund (CRF). The audit requirement is to further ensure that subrecipients expending
$750,000 or more are in compliance with the regulations of the Coronavirus Relief Fund.
Without an audit, Federal funds may not be expended or administered in accordance with the
CRF.
Single Audit of Federal 40 Exhibit #4
Award Programs
State of Alabama
Schedule of Findings and Questioned Costs
Department of Finance
For the Year Ended September 30, 2020
Recommendation
The Department of Finance should notify subrecipients of the audit requirements and should
require subrecipients to provide documentation to verify that the audit has been completed as
required.
Views of Responsible Officials of the Auditee
Approximately $1.8 Billion in Coronavirus Relief Funds were given to the state in April 2020
with a deadline of December 30, 2020 to disburse the funds. Working on a very tight deadline
during a pandemic with limiting and conflicting guidance from the federal government, the
Finance Department began the dissemination of the funds. Contracts were created for
all “subrecipients” with guidance on requirements. Early guidance and conference calls with
U. S. Treasury representative suggested that states might not have to follow Uniform Guidance.
Later in the summer, it was clarified that only portions of the Uniform Guidance were required.
The federal guidance for these funds was updated almost weekly and, oftentimes, prior guidance
decisions were reversed. The early contracts did not reference 2 CFR but later contracts did;
however, specific reference to obtaining a Single Audit for amounts over $750,000 was not
included in the early CRF contracts. In distributing funds with these early contracting entities,
we verbally discussed with the entities that they were subject to the Single Audit and verbally
confirmed all were active with their Single Audits. We only chose entities for these distributions
that were accustomed to federal funding requirements and current on their audits.
On December 27, 2020, the federal government extended the allowable period for CRF
distribution to December 31, 2021. All Coronavirus Relief Funds already obligated all funds at
that point and no new contracts will be created. If the Finance Department is charged with
distributing federal government funds to subrecipients in the future, all contracts will contain the
Single Audit requirements and written verification of Single Audit compliance will be obtained
if required.
Single Audit of Federal 41 Exhibit #4
Award Programs
State of Alabama
Summary Schedule of Prior Audit Findings
Single Audit of Federal 42 Exhibit #5
Award Programs
State of Alabama
OFFICE OF THE GOVERNOR DEPARTMENT OF LABOR
KAY IVEY STATE OF ALABAMA FITZGERALD WASHINGTON
GOVERNOR SECRETARY OF LABOR
Summary Schedule of Prior Audit Findings
Department of Labor
For the Year Ended September 30, 2020
As required by the Uniform Administrative Requirements, Cost Principles and Audit Requirements
for Federal Awards, 2 CFR 200.511, the Alabama Department of Labor has prepared and hereby
submits the following Summary Schedule of Prior Audit Findings as of September 30, 2020.
Finding
Ref.
No. Status of Prior Audit Finding
2019‐001 This is a repeat of Findings 2018‐001, 2017‐001 and 2011‐001 which indicates
2011 as the year the finding originally occurred.
Contingency Planning and Disaster Recovery – Material Weakness
We reviewed the internal control policies and procedures affecting the ability of
certain state agencies to be able to continue operations in the event the
information technology resources of those agencies were adversely affected by
man‐made or natural disasters. Critical information technology resources and the
related government functions served by those resources are at risk because of
weaknesses in the control policies and procedures affecting contingency planning.
The Alabama Department of Labor had a disaster recovery plan; however, the plan
has not been updated to adequately reflect significant changes in hardware,
software, and personnel. The Department of Labor also does not have an
alternate site that could be used as an alternate processing facility if the primary
site becomes unavailable. These conditions increase the risk that the Department
could incur major disruptions in service if there is a catastrophic event at or near
its primary data processing center.
Response/ Views: ADOL agrees with these findings.
Status of Corrective Action:
ADOL does have a “formal” disaster recovery (DR) plan, However, it was updated in 2016 and best
practice dictates that DR plans be evaluated every 18 months and officially updated every 36
months. ADOL failed to follow these best practices because of lack of resources during the
modernization of the Unemployment Insurance system that processes and records benefits, taxes,
Page 1 of 2
649 MONROE STREET MONTGOMERY, ALABAMA 36131
STATE OF ALABAMA
DEPARTMENT OF LABOR
and appeals which started in 2017. This modernization required all of ADOL’s IT resources and
lasted until early 2020.
Although personnel roles will likely stay the same, the process and procedures because of the
modernization will need to be re-engineered to meet the new requirements. ADOL was
scheduled to kick off the DR project in late March of 2020, however, the COVID 19
Pandemic state of emergency happened, this state of emergency brought with it unprecedented
unemployment claims, and all ancillary projects were halted to meet the demands of the
emergency. ADOL is still feeling these demands as of late June 2021. ADOL expects these
demands to lessen around October of 2021, at which time ADOL plans to add the formal DR
documentation to the list of priorities to be worked.
PLEASE NOTE: ADOL is only deficient of the proper documentation of the disaster recover.
ADOL’s team of professionals did successfully negotiate the state of emergency (disaster) that
Alabama experienced in March and April of 2020. ADOL had ZERO down time, while other
departments in the state were trying to figure out how to work remotely from home. ADOL
successfully established remote work for our employees kept UI systems up while facing a
500% increase in workload. ADOL successfully keep our processes secure. ADOL does lack
the proper paperwork to prove ADOL has a disaster recovery plan in place, ADOL does plan
for disasters while developing systems and procedures when developing systems. ADOL does
not have it documented to the standards preferred.
ADOL does have an alternate site for the most critical systems utilized in the Unemployment
Insurance processing. ADOL uses the South-Central (Texas) region for the primary region Data
Station. ADOL utilizes the paired disaster recover region designated by Microsoft to North-Central
(Illinois). ADOL utilizes a database failover group to allow smoother transitions if the need ever
arises. ADOL requires the deployment of the same code to the failover site as it makes it to
production in efforts to minimize complexity and hopefully a simple failover if the need ever arises.
ADOL does need to figure out an alternate print solution, but it will most likely be a service procured
at the time it is needed, this will be addressed when the DR project is started later this year.
Anticipated Completion Date: Spring of 2022
Contact Person: John Demas (John.Demas@labor.alabama.gov)
Fitzgerald Washington
Secretary of Labor
Alabama Department of Labor
John Demas | IT Director
Information Systems
Alabama Department of Labor
PAGE 2 OF 2
649 MONROE STREET MONTGOMERY, ALABAMA 36131
Alabama Medicaid Agency
501 Dexter Avenue
P.O. Box 5624
Montgom ery, Alabama 36103-5624
www.medicaid.alabama.gov
e-mail: almedicaid@medicaid.alabama.gov
KAY IVEY Telecommunication for the Deaf: 1-800-253-0799 STEPHANIE MCGEE AZAR
Governor 334-242-5000 1-800-362-1504 Commissioner
Summary Schedule of Prior Audit Findings
For the Year Ended September 30, 2020
As required by the Uniform Administrative Requirements, Cost Principles and Audit Requirements for
Federal Awards, 2 CFR 200.511, the Alabama Medicaid Agency has prepared and hereby submits the
following Summary Schedule of Prior Audit Findings as of September 30, 2020.
Finding
Ref.
No. Status of Prior Audit Finding
2019-005 The Uniform Guidance, 2 CFR 200.303, requires non-Federal entities receiving Federal
awards (i.e., auditee management) to establish and maintain effective internal controls
over the Federal award that 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. The Alabama Medicaid Agency is required to
ensure that the State accurately reports overpayment recoveries resulting from the
Medicaid Fraud Control Unit (MFCU) activities on the CMS-64, Quarterly Statement of
Expenditures for the Medical Assistance Program.
During the review of the Medicaid Agency’s Special Test and Provisions procedures, we
determined that the Medicaid Agency did not report the correct amounts for the
overpayment recoveries collected as a result of MFCU activities in the CMS-64 report for
three of the four quarters for the fiscal year 2019. We determined these errors constituted a
significant deficiency in internal controls and noncompliance.
These errors resulted because the control procedures at the Alabama Medicaid Agency did
not include a validation step to ensure that overpayment recoveries resulting from the
Medicaid Fraud Control Unit (MFCU) activities agreed to the amounts reported on the
CMS-64, Quarterly Statement of Expenditures for the Medical Assistance Program. As a
result of not having adequate controls in place, inaccurate amounts were reported to the
federal government on the CMS-64, Quarterly Statement of Expenditures for the Medical
Assistance Program.
Alabama Medicaid Agency’s Finance division has created reports to verify MFCU
information is correct before entering it onto the CMS-64. Verification of this data was
implemented quarter four 2020 after the Examiner’s finding.
Our Mission - to provide a system of financing health care for eligible Alabamians in accordance with established statutes and Executive Orders.
Auditee Response/Corrective Action Plan
Section II – Financial Statement Findings (GAGAS)
Single Audit of Federal 43 Exhibit #6
Award Programs
State of Alabama
OFFICE OF THE GOVERNOR DEPARTMENT OF LABOR
KAY IVEY FITZGERALD WASHINGTON
STATE OF ALABAMA
GOVERNOR SECRETARY OF LABOR
Auditee Response/Corrective Action Plan
Section II – Financial Statement Findings (GAGAS)
Department of Labor
For the Year Ended September 30, 2020
As required by the Uniform Administrative Requirements, Cost Principles and Audit
Requirements for Federal Awards, 2 CFR 200.511(c), the Department of Labor has prepared and
hereby submits the following Corrective Action Plan for the finding which will be included in
the Schedule of Findings and Questioned Costs for the year ended September 30, 2020.
Finding
Ref.
No. Corrective Action Plan Details
2020-001 This is a repeat of Findings 2019-001, 2018-001, 2017-001 and 2011-001 which
indicates 2011 as the year the finding originally occurred.
Contingency Planning and Disaster Recovery – Material Weakness
We reviewed the internal control policies and procedures affecting the ability of
certain state agencies to be able to continue operations in the event the
information technology resources of those agencies were adversely affected by
man-made or natural disasters. Critical information technology resources and the
related government functions served by those resources are at risk because of
weaknesses in the control policies and procedures affecting contingency planning.
The Alabama Department of Labor had a disaster recovery plan; however, the plan
has not been updated to adequately reflect significant changes in
hardware, software, and personnel. These conditions increase the risk that
the Department could incur major disruptions in service if there is a
catastrophic event at or near its primary data processing center.
649 MONROE STREET MONTGOMERY, ALABAMA 36131
An Equal Opportunity Employer / Program
Auxiliary aids and services available upon request to individuals with disabilities
Dial 711 for TTY accessibility
STATE OF ALABAMA
DEPARTMENT OF LABOR
Recommendation
The Alabama Department of Labor should update all components of its
disaster recovery plan. Periodic reviews and updates of the disaster recovery
plan should be performed.
Response/Views: We agree with this finding.
Corrective Action Planned: ADOL’s disaster recovery plan is currently being
reviewed to analyze the possibility for our existing plan to be converted to
cloud based electronic system. This system would reflect updates to hardware,
software, and personnel on a regular basis. ADOL personnel currently operates
from a cloud platform daily, which allows ADOL to work from any alternate
location with a secure network. This drastically decrease the risk of any major
disruptions in service if there is a catastrophic event at or near our primary
data processing center.
Reason for the Recurrence: Since March of 2019 ADOL has been handling a very
high volume of work. The secure and effective processing of UI claims has been
ADOL's main goal. ADOL's has not had the resources to review or update the DR
plan submitted for this audit. The addition of new technologies and the effort to
keep the DR plan relevant to ADOL's current environment has resulted in ADOL's
inability to keep the DR up-to date with the changing technologies. ADOL hopes
to have an updated plan by the end of 2nd quarter 2021.
Anticipated Completion Date: July 1, 2021
Contact Person(s): John Demas (john@alabama.gov)
Signature of Responsible Official: Place your signature as the Responsible
Official here.
649 MONROE STREET MONTGOMERY, ALABAMA 36131
An Equal Opportunity Employer / Program
Auxiliary aids and services available upon request to individuals with disabilities
Dial 711 for TTY accessibility
This Page Intentionally Blank
Auditee Response/Corrective Action Plan
Section III – Federal Awards Findings and Questioned Costs
Single Audit of Federal 44 Exhibit #7
Award Programs
State of Alabama
STATE OF ALABAMA
Department of Finance
Office of the State Comptroller
100 North Union Street, Suite 220
Montgomery, Alabama 36130-2602
Telephone (334) 242-7063 Fax (334) 353-0442
Kay Ivey www.comptroller.alabama.gov Kathleen D. Baxter, PhD, CGFM, CPM
Governor State Comptroller
Bill Poole Michael G. Hudson, CGFM
Finance Director Deputy State Comptroller
Auditee Response/Corrective Action Plan
Section III – Federal Awards Findings and Questioned Costs
Alabama Department of Finance
For the Year Ended September 30, 2020
As required by the Uniform Administrative Requirements, Cost Principles and Audit
Requirements for Federal Awards, 2 CFR 200.511(c), the Alabama Department of Finance
has prepared and hereby submits the following Corrective Action Plan for the finding
which is included in the Schedule of Findings and Questioned Costs for the year ended
September 30, 2020.
Finding
Ref.
No. Corrective Action Plan Details
2020-008
FINDING:
2 CFR section 200.331(f) states, "Verify that every subrecipient is audited as required by Subpart
F--Audit Requirements of this part when it is expected that the subrecipient's Federal awards
expended during the respective fiscal year equaled or exceeded the threshold set forth in section
200.501 Audit Requirements." 2 CFR section 200.501(a) states, "Audit Required. A non-
Federal entity that expends $750,000 or more during the non-Federal entity's fiscal year in
Federal awards must have a single or program-specific audit conducted for that year in
accordance with the provisions of this part."
During our review of 60 of the 274 subrecipients, we noted the Department of Finance did not
require verifications from subrecipients that expended $750,000 or more that they received an
audit, nor were subrecipients notified that they were required to have an audit. According to the
Department of Finance, they were unaware of the applicability of Subpart F to the Coronavirus
Relief Fund. The audit requirement is to further ensure that subrecipients expending $750,000 or
more are in compliance with the regulations of the Coronavirus Relief Fund. Without an audit,
Federal funds may not be expended or administered in accordance with the CRF.
RECOMMENDATION:
The Department of Finance should notify subrecipients of the audit requirements and should
require subrecipients to provide documentation to verify that the audit has been completed as
required.
Corrective Action Plan:
If the Finance Department is charged with distributing federal government funds to subrecipients
in the future, all contracts will contain the Single Audit requirements and written verification of
Single Audit compliance will be obtained.
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